11/28/1977 CONF MTG - 5617L-�
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FRIDLEY CITY COUNCIL - CONFERENCE MEETING
November 28, 7977
1. Discussion Regarding Neighborhood Identity and Crime Watch.
2. Discussion Regarding School Buildings
3. Discussion Regarding Development Around City Hall
4. Discussion Regarding Snowmobiling
5. Discussion Regarding City's Goals and Objectives
6. Discussion Regarding Agenda Proposal--Consent Items
7. Discussion Regarding Liquor Store--Target Property
8. Discussion Regarding Para-Transit Grant Application Proposal
9. Other
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INTRODUCTION:
Planning is viewed as a series of related actions and decisions that
ere organized around and moving toward the accomplishment of qoals and
Objectives. The goals and objectives themselves are the cornerstone of
the planning process, for in theory, they form the framework for public
and private decision making, Effective technical planning only occurs when
there is a c]ear notion of the goals and objectives•being pursued. These
goals can be determined only through decisions concerning the scope and
content of action based ultimately on an esta6lished value system. These
goals must ultimately be established by the elected officials in conjunciion
with the public, and are the result of a complex set of pressures and
compromises which form the value system of a community.
The goals and objectives, once established, become the basi5 UDOn '
whiCh o�era ina dan-r+ !
—,- ments_ str��tu�their aetivities, Together they
exhibit a basic concern for goals, values and the need for making basic �
choices. �
The operating departments then establis�po7iciesJ hich are a set of
general statements based on the community;s goals and objectives that
define the direction and character of future development and set forth the
actions necessary to attain the desired results. They are the connective
link between general goals and objectives and specific recomrnendations.
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These policies will not be discussed in this document,_but wi11 be incor-
porated in a policies plan document. `
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� ' ' �� � ����� NOUSING
The goal area Housing relates to those functions which deal with the
provision and maintenance of housing.within the community.
GOAL STATEMENT: H100: Provide for and maintain in the community,
without discrimination, a diversity of
suitable housing and living environments
for all persons.
Program Objectives Hi10: Assure safe and healthful conditions in all
housing and encourage consideration of the
qualities of privacy, comfort and other
amenities.
H120: Encourage programs to provide housing at a
cost individuals and families can afford
without compromising essential needs.
H130: Promote the preservation and upgrading of
existing residential housing.
H140: Pro�te a sufficient variety of housing to
allow all people a housing choice.
H750: Incorporate Metro-wide housing development
framework policies, where possible, so as
. to fulfill the City's role as a Metropolitan
neighborhood.
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r��s MAN DEVELOPMENT
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���e goal area•Human Development relates to those facilities and services
which afford each individual an opportunity for a viable cortmunity t�pe
and enable them to develop their full potent�al.
GOAL STATEMENT:
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Program Objectives
GOAL STATEMENT:
Program Objectives
D100: Provide adequate park facilities and
recreation opportunities to ensure health
and well 6eing, to the residents and provide
a quality living environment.
D10: Develop an order of quality park facilities
that will be flexible to the changing needs
of the Community.
D120:
D130:
Provide innovative park design with a balance E
of functional and aesthetical consideration, ;
creating substantial recreational, educational:
social and psychological experiences.
Provide for innovative space management �
controlw withisafetyfassa�p �meaconsider-
ation. �
D140: Encourage the advancement of recreation
opportunities for all residents.
D150: Promote "pepP�e oriented" parks through
active citizen participation.
D200: Help foster an attitude which stimulates
life-long motivation for learning and
cultural development
U210: Promote an awareness and appreciation of the
Humani,ties.
�220:. Help stimulate a
���he fine artsPP�ethpt,�.ommand;participation
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Program Objectives D230: Encourage an interaction of learning
(continued) facilities and programs necessary to allow
residents a wide choice of pursuits in
education, training and cultural development.
GOAL STATEMENT: D300: Provide public information and communication
in order to foster an awareness of the City's
varied activities and availability of these
activities.
Program Objectives D310: Secure and maintain a'clearing-house of
information' posture with respect to public
and semi-pu6lic, cultural, vocational and
recreation program opportunities.
D320: Provide for adequate and viable means of
participation, redress and reasonable access
to the affairs of local government for all
citizens.
D330: Provide for efficient method of dissemination
of information.
D340: Promote a greater cooperation and mutual
understanding between the public, semi-
public and private sectors of the population.
GOAL STATEMENT: D400: Promote efforts for providing essential
human services to all persons in the
coimnuni ty.
Program Objectives D410: Encourage the development of an adequately
supervised day care center program throughout
the City, to not only accommodate the needs
of orking par.epts, but also to foster
broa er cu tural opportunities for a71
� citizens.
D420: Promote effective methods for praviding
information and referral services to the
community to efficiently inform residents
of the Human Services available to them.
D430: Continue to support Federal, State, County
and local efforts in providing needed human
service opportunities, and continue to work
in cooperation with these organizations in
providing more effective programs.
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GOAL STATEMENT:
Program Objectives
D500: Encourage programs designed to promote
effective human understanding within
the community.
D510: Promote the development of the youth of
the comnunity through understanding of
their needs and encourage programs that
will provide for these needs.
D520: Promote understanding of the elderly and
encourage programs which will provide for
their needs within the comnunity.
D530: Promote understanding of ethnic, religious
and other life style differences which are
the make-up of a total city.
D540: Promote understanding of minorities and
encourage programs which provide opportuniti
for their development in society.
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� � � r � � � n c � O ACCESS
The goal area Access relates to those systems which deal with the
movement of people, goods and services into and within the comnunity.
GOAL STATEMENT: A100: Maximize acce5sibility to allow for safe,
efficient movement of people, goods and
services.
Program Objectives: A110: Provide a transportation system which not
only maximizes access to all parts of the
City, but which also maximizes access firom
within the City to other Metropolitan areas.
A120: Assure an effective choice of transportation
modes suited to various needs of potential
users.
A130: Assure the coordinated design and operation �
of these transporation modes with each
other and with the area development policies '
and criteria for efficiency and safety.
A140: Assure minimum conflict of routes with the �#
functions of neighborhoods and business �
districts so as ta reduce social and
� environmental impacts.
A150: Promote increased public transportation
service and facilities to provide better
and more convenient transportation oppartuni
ties to the City residents.
A160: Provide a high level of maintenance to assure
that the transportation system be free of all
obstacles and maintained for safe, efficient
flow.
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Program Objectives
(continued)
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A170: Promote all pertinent measures for �
multiple use of facilities and 1and,
especially in key travel-desire corridors
and areas of concentrated activities.
A180: Encourage participation by affected citizens
in transportation decision making, planning
and evaluation.
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The goal area Security relates to those functions which deal with the.
irdividua7 and public health, safety and general welfare and promote
the protection of the environment.
GOAL STATEMENT: 5100: Assure the security of the individual
from criminal acts and civil wrongs.
Program objectives: S110: Strive for enactment of laws and ordinances
that are just and reflect the values of
society and equitable relations between
its members.
GOAL STATEMENT:
Program Objective
S120: Promote a natural transition when change in
law or ordinance is required.
S130: Develop and utilize all possible means for
preventing each type of civil and criminal
conflict.
S140: Assure that the rights of every individual
are respected and protected on a non-discrim-
inatory basis. :a
S150: Develop and promote the cor�enunications
� necessary to secure public respect and
support of the criminal justice system, and
to assure the respect of the public by the
officials of the justice system.
5200: Assure that all persons are able to secure
the basic human necessities required to
maintain their highest potentials for fiealth.
S210: Cooperate aith appropriate agencies in mini-
mizing the incidence, spread and effect of
potential health hazards in the City.
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GOAL STATEMENT: S300: Assure the conservation and improvement of
the environment for the promotion of the
health and well being of the individual.
Program Objectives 5310: Promote efforts in evaluating problems and
pursuing solutions in the maintenance and
improvements.of the environment.
5311: Air, water and noise control policies.
S312: Pollution abatement policies - littering, etc
5313: Renewable and non-renewable resources. —
S314: Preservation of natural habitats.
5320: Assure prompt and efficient collection of
both liquid and solid wastes and effective
freatment of surface runoff.
S330: Eliminate or control disease-carrying pests,
noxious weeds.and harmful insects.
S340: Promote a better understanding of the the
ecological systems and natural resources
� important to the community.
GOAL STATEMENT: S400: Reduce the probability of fire and other
disaster, effectively respond to their
occurrence and remedy their effects as
quickly as possible.
Program Objectives S410: Develop and promote programs for the pre-
vention of fires and other emergencies by
utilizing every possible means to eliminate.
�otential hazards. ,
5420: Attain the ability for rapid, efficient and
� effective response to protect the individual .
when fires or other emergencies occur. �
5430: Help facilitate the return of conditions to
a suitable productive state as quickly as
possible.
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� �. �. �" � ���� t � COMMUNITY VITALITY
The goal area Community Vitality relates to those functions which deal
with the operatian and growth potential of the community.
�OAL STATEMENT: V100: Develop and promote ideals necessary to
maintain the economic well being of the
coimnuni ty.
Program Objectives V110: Identify and promote the kind of activities
of varying types and levels which will pro-
vide a rising standard of living for our
residents at each stage of development or
redevelopment of our City.
V120: Promote sound land management in order to
provide for a well balanced land use system.
� V130: Develop and maintain an equitable system of
assessment and taxation so as to provide a
stable economic base to meet the changing
needs of the community:
V140: Promote a desirable image of the City.
V150: Promote an atmosphere which encourages in-
dustrial and commercial efforts to provide
business services and employment opportuni-
ties to the residents.
GOAL STATEMENT: V200: Provide an effective system of government
capable of ineeting the changing needs of
the conununity.
Program Objectives: V210: Provide government funtions adequate to meet
the needs of the community.
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Y210: Develop high quality operational standards �
which will provide the necessary services
needed to ensure continued comnunity
development.
Y230: . Provide essential communication and
coordination between the City and other
agencies which may affect the operation '
of the City.
V240: Provide the means for effective communicatien
between the City's governmental oper�tion '
and its residents. (
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CITY OF FRIDLEY
MEMORANDUM
TOc NASdM M. QURESNI, CITY MANAGER, AND CITY COUNCIL
FROM: MARVIN C. BRUNSELL, ASST. CITY htGR./FIN. DIR.
SUBJECT: LIQUOR STORE SALES SURVEY
DATE: NOVEMBER 21, 1977
The attached letter (Exhibit "A") was sent to five firms, soliciting informal
estimates of what it might cost to make a market analysis relating to opening
a third liquor store. These five firms contacted were: "—
1. Midwest Planning and Research, Inc.
2. Page Whitmore Consulting Services
3. SippeT, von Kuster & Associates, Inc. `�
4. Horwath & Horwath International
5. Winona, Inc.
We received written replies from Midwest Planning and Research, Inc., Page
Whitmore Consulting Services and Sippel, von Kuster & Associates, Inc. The,y.
are attached.
Sippel, von Kuster indicates the cost range for such a study could 5e from
$2,000 to $8,000 (Exhibit "B").
Midwest Planning and Research indicates the cost would be about $3,000 (Exhibit
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Page Whitmore consulting Services states they are not interested in this project
(Exhibit "D").
Horwath and Horwath are interested. I met with them on Friday, November 18,
giving th�n additional information and they will be submitting a proposal.
Winona, Inc. has not submitted a proposal. We called their office on November 18,
and they indicated they would not be interested.
Additional information was mailed to the interested companies on November 21. See
the letter dated November 21, together with the attached material (Exhibit "E")
At this point, I am not sure now far the Council wants to proceed on this matter.
That is, does the Council want the administration to engage one of the canpanies
at a fee not to exceed a certain amount? Does the Council want to interview
the people themselves, or does the Council want to hold off doing anything on
this study?
MCB:sh
Attachments
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EXHIBIT "A"
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8431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432
TELEPHONE (Bt2)571•3450
November 2, 1977
Mr. James T. Christensen
Vice President �
Midwest Planning�and Research, Inc.
2101 Hennepin Avenue South
Minneapolis, Minnesota 55405
Dear Mr. Christensen:
The City of fridley is considering the possibility of opening up
a third off-sale liquor outlet. The store would be located just
north of 53rd Avenue and east of Central Avenue in the City of
Fridley.
The City presently has a municipal off-sale stare at Holly Center,
65th and University, and at 6289 tlighway No. 65. The City owns the
buiiding at 6289 Highway No. 65, and leases the space at the Ho.}ly
Center store.
We have a concern that opening up a new liquor �utlet at 53rd and
Highway No. 65 may have an adverse effect on the two existing stores.
We are seeking outside assistance on this matter, and also on the
question of potential sales at the 53rd Avenue location.
The purpose of this letter is to make contact with people who may be
in this field., and to get a preliminary estimate of the cost of
making such a survey.
I am enclosing a copy of a report dated August 17, 1977, detailing
the history of the liquor operation as well as some custamer count.
information we have gathered at our own existing stores. 7his cus-
tomer count information shows the disbursal of the customers at the
present two stores. I should point out that this is a very small
sampling and r�as not necessarily that scientifically conducted. We
used the customer addresses as shown on their checks.
I would be happy to hear from you concerning how you might be ahle:
to help us.
MCB ps
Enc.
cc City Manager
Very truly yours,
Marvin C. Brunsell
Assistant City hianager/Finance Director
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CITY OF FRIIY EY
MEI4ORANDUM
T0; NASIM M. QURES4I, CITY l4ANAGER, AND CITY COUNCIL
FRO�d: MARVI"1 C. BRU^lSELL, ASST. CITY MGR./FIN. DIR.
SUBJECT: LIQUOR STORE - TARGET PROPERTY
DATE: AUGUST 17, 1977
I. THE CITY t4A.NAGER HAS ASKED BOB McGUIRE A�ND;SE TO IYVESTI6ATE PiE FEASIBILITY OF
OPENIi�4G A TNIRD LIQUOR OUTLET ON THE TARGET PROPERTY AT 53RD AND HIGHIdAY $65.
i. Sob and I have done sor�e preliminary work reqardinq the request
�,. ..ti..,.i, +ti., c.,�.-;ti;7;;�., �� .,.,o.,;�r, a+hirrl linunr ctnrv �ust SO��h Oi th2 POP S!-
2. The feasibility studv must take into consideration not only the
II. THE fIRST FRIDLEY IdUNICIPAL LIQUOP, STORE ?lA5 OPEYED IN OCTOBER, 1943,'�:ITH
i}IE-0PERATI6N GROIJING TO AN EUENTUAL SIZc OF FOUR OFF-SALE STORES AiJD Tr10
BARS, AP�D THEN SHRINKING TO THE PRESENT SIZE OF TWG OFF-SALE STORES.
1. The first off-sale store was opened at 7361 Central Avenue in October,
1949. A bar- opened at this sarr� ocation in e ruary,
A, Ordinance No. 26 adopted by the Fridley City Council on
September 23, 1949 authorized the establishment of municipal
liquor stores.
8. The building at 7361 Ceptral Avenue was rented.
C. Funds to start the first store at 73b1 Central Avenue were provi�i�d
by contracts for deedfor fixtures, and accounts payable were used
to financ� inventory
D. The bar at the 7361 Central Avenue location was closed at the
end of 1956 due to loss of business because of construction of
the new Highway �65, rrhich rorouted much of tiie traffic, and
the closing davn of the full scale operation of the Yew Brighton
Artt�s Plant.
E. The off-sale operation at 73G1 Central Avenue was si�ut down in
February, 1964. .
2. A second off-sale store was opened at 3710 East River Road in i�ovember,
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70: NASIht M. QURESHI, CITY MANAGER, AND CITY COUNCIL
August 17, 1977
Page 2
3.
A. Funds for Cbns:ruction of th2 off-sale operation
were provided by a contract for deed and for the on-sale
operation funds cane frora reiai�ed earnings.
B. The bar at 3710 East River Road was sold at the time the City
went out of the bar business in September, 1971. The City
went out of the off-sale business at this location on April 1, 1974
C. At the time the City decided to get out of the bar business,
the land and building at both 3710 East River Road and 6161 NiShway
#65 were sold.
D. The City leased back space from the new owner of the buildirig
at the 3710 East River Road location for the off-sale operation
until the closing of the store. Tii� closing was caused by a decr.ease in
business due to the closing of the Camden Bridge.
E. The City retains certain rights through ,lanuary 1, 1980 to
repurchase one-half acre of land formerly owned by the City
at the 371D East River Road location.
A. The City issued revenue bonds to build the bar, lounge, and
off-sale store at 6161 Highway #65.
8. The revenue bonds issued to finance the Shorewood were retired
on September 1, 1971.
C. The City sold the building and the bar fixtures at 6161 4igh�aay
�65 in September, 1971 when the City decided to get out of the
bar business.
D. The City continued to operate an off-sale operation at 6161
Highway #65 after selling the building, leasing space from the
�ew aane rs .
E. The space available for the off-sale operation at 6161 Highway
�65 praved to be inadequate after the sale of the building, as
• the City was deprived of the use of much of the fornier storage
space, and the new rnvner of the building had a need for the
space.
f. The City built a new off-sale building at 6289 Highway H65 in
1973 to take the place of the space the City had been leasing from
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T�: NASIM IA. QURESNI, CITY (dANAGER, ANO CITY COUNCIL
August 17, 1977
Page 3
4.
5.
the owners of the Shorewood.
an off-sale liquor store at 6481 University
0, leasinq a small amount of space in t e o
r
A. The City opened a small off-sale operation at 6481 University
Avenue utilizing some existing fixtures. •
B. Business gre+a rapidly at tlie University Avenue location and
the City soon outgrew its space, warranting a move to the
present off-sale store at the Holly Center.
C. The City moved to the present location in the Holly Center
in August, 1464, purchasing new fixtures, coolers, etc.
ore was ooened in
r, in rented spac
A. The off-sale store at the Skywood h1a11 continued in opzration
until June 1, i973 when ii was closed because of unprofitability.
6. The oeoole of tha Ci
F
n
A. A vote on the question was required at that time because the
City had increased to over 15,000 population, making Fridley
a second class City.
8. The vote for staying in the liquor business was 1,226 Yes to
100 t�o.
C. A vote on split liquor, or going out of the on-sale business,
was held on ,4ugust 19, 1969, at which time the vote was Yes,
1,134 to 392 No.
The funds for �urc:�asin� buildings, fixtures and invontory for all of
the stores rlere secured fra.n the liquor o�eration retained earnings, I
^�eans o usino contracts for deed, credits on accounts �avable, and a
revenue
A. The City currently has no outstanding long-term debt for the
liquor operation.
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T0: NASIM M. QURESHI. CITY M11iJAGER
August 17, 1977
Page 4
III. SALES OF $1,061,501 AND NET PROFIT OF $93,963 FOR TH YEAR 1976, COMPARES
WITH AN ALL TI11E HIGfi NET PROFIT OF $225,180 IN 1969 ON SALES OF $1,464,233.
1. In 1976, the City ooerated two off-sale operations on which a_
profit of 598,963 v+as earned, comaared u�ith an all time hiqh net
2.
3.
Year
1950
1955
1960
14.65
1470
1975
n
s, profit, and number of stores
are as follows:
Sales
$ 99,409
211,918
599,918
1,048,895
1,534,762
7,100,224
Profit
Not Availa6le
$ 51,667
79 ,795
136,031
219,943
90,939
s
rated for
tlumber of Operations
One -0ff Sale, One On Sale
Two Off Sale - One On 5ale
Three Off Sale - Two On Sale
Four Off Sale - Two On Sale
four Off Sale - Ttivo On Sale
Two Off Sale
/;. � 1970 � 7971 1972 � 1973 197A 1975 1976
Sales
Off Sale 51.169,)34 51.137,772 51,064,472 51.067,330 51.074,769 51.100.224 S1,OG1.561
On Sxle 365.�28 312,6a7
iotal sales �. 3�4� .45�.359 7,Oo9,472 5.0�67,33U .074,169 7, 00,224 7.J61,562
tost of ssies 983.004 �952.302 807.135 832.148 828.325 858,456 847,082
6ross profit i. 546,678 S 498,057 E 262,736 S 235,1a2 S 245,843 S Z37.768 S 274,430
6ross pmTit percent 35.6Y 34.3% 24.5: 22.05 22.95 21.iX 20.25
Rierating eMpenses 343,122 37�7,�31_ 183.057 202,3'JB 766,551 169.4a3 151.851
Operating Drufit S 207,556 5 120,026 S 74,279 S 32,874 S 74,292 S 62,315 5 62.629
Other incame md �
expenses (net) 16,337 86,III4 25,172 19.235 26,0�7 28.624 36,338
ikt income S 219,943 S 214.900 f lOD,0i7 S 52,109 f�107,339 S 90,939 f 98.963 �
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T0: NASIti I9. QURESNI, CITY MANAGER
August 17, 1977
Page 5
B. The City sold both on-sale liquor stores in September, 1971 for
$252,000, resulting in a gain on the sale of fixed assets of
$66,848. ..
C. The fair Trade Law on liquor sales o-ras repealed in 1973,
resulting in much greater price competition and declining
gross profit margins.
D. After the repeal of the Fair Trade Law, the large stores which
advertise heavily seer�ed to be taking a greater share of the
liquor business.
4. The City's qross profit margin has been declininq steadily in recent
eY ars'
A. On-sale stores normally operate with much higher gross profit
mar�ins than off-sale stores. ,,
B. In order to remain competitive with the large private stores,
Fridley has had to cut the overall gross profit margins on its
merchandise, in addition to running many price 7eaders.
C. The trend in recent years for most nunicipal stores has been one
of lower margins and lower profits for the off-sale operations.
D. The discontinuance of the Fair Trade Lav+ in 1973 had a dramatic
affect on margins and prices.
E. There has been an increase in comaetition from :aareiiouse type .
liquor ope rations on Hig:iway #l0 as well as davntown Minneapolis.
IY. THE OPTIONS AVAILABLE TO FRTDLEY II�CLUDE, OPEiJItVG UP ONE OR ��ORE NEt•1 LIQUOR
OUTLETS I�� RE;JTED OR 0'.J"IED QUARTERS, OR STAYIHG WITN THE PRESENT T'vJ0 STORES.
1. Target has approached the City regarding land available for a
liouor store near the Taraet Store in Fridlev.
A. The owners of the Pop Shop have approached the City
regarding the possibility of their building a building and
leasing it to the City for a liquor store.
B. Target had offered to sell Tand to the City at that location
for around $2.50 a square foot.
C. For a comparison of purchase vs, lease, see financial anaylsis
attacied to tnis r,�emo.
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TD: NASIt9 M. QURESHI,
August 17, 1977
Page 6
2.
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CITY 14Af�AGER
ase the 7and it has an o�ti
A. 7he City has the right to repurchase one-half acre of land
at the East River Road location. .
3. The City could stay ivith ±he exis
e�hasis on turnover at these loc
two locations
A. The trend in the liquor business seems to be more and more to
high volume, laur margin operations. It is probably uneconomical
to operate a municipal liquor store in the close in Twin City area,
if volume is less than $300,000 per year, and tfie break-even point
may vsll be up to the $500,000 sales figure in the near future.
4. It is miach eas1er to estimate expenses associate
A. The Liquor Store Pfanager and I have put together some rouyh
estimates of vrhat an operation at tiie Target location migiit do
and hav this would affect our �xisting ooerations.
S. We have resources to estimate expenses, however, a market
analysis is a separate field, for svhicii Eve should engaga
a consul�tant.
5. Options available to
sina the
A. In very preliminary discussionswith the new owner of the Pop
Shop, they have indicated they �aould build a building and lease
it back to the City for 526,000 a year on a fifteen year lease,
adjusted for cost of living.
B. The City had originally talked to Dayton Hudson Corporation
about purchasing the land for $2.50 a square foot.
Y. RECOMMENDATIONS INCLUDE HIRIWG A CONSULTAPtT AT AN EARLEST DATE POSSIBLE
TO MAKE A MARKET ANALYSIS, "."!D LOOY TO PURCiiASIiVG RATHER TiIA'i� LtASIi�G.
1.
onsidering the risk involved in opening another liqu
nvestrient in a market analysis would be a good inves
atv committina its�lf.
A. The ]arge unknown in this consideration is tlie potential sales
of the neta store, and the new store's affect on existing stores.
B. Ne can put together all the cost information if we have the
Sates data. .
T0: NASIM td. QURESHI, CITY MAf�AGER
August 17, 1977
Pa ge 7
2.
C. This report would give a consultant a good background and tEie
history of the liquor o�erations.
D. I recomnend a consultant be hired.
if
A. Based on preliminary sales and wst projections, i� taould be
advantageous to the City to o:rn the land and building at the
Target location, rather than leasing.
B. If consideration were given to opening a store at 3710 East River
Road, the lease vs. a�rnership question would not necessarily
result in the same recommendation as at the Target location.
C. I feel there is more risk in �eing tied to a fifteeh yaar lease than
in rn•ming land and a building at a �ery good business location.
D. The lar.d price would almost certainly continue to increase at this
location,.and building costs are going up every day.
E. The location near Target is such that the property could be utilized
by some other type of business if need be.
F. The City could finance the purchase of the land and the building with
Tiquor retained earnings and other available City funds.
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� SURYET OF MIiO CUYS AT iRIDIEY LIQUOR � �
� STORES WTSIDE OF iRIDLEY Harch� :
FRIDLEY 607TLE SHOP . . . �, �i4 .
� 1400 GlacierLane,Mp1.. �. 1699 Valerie Ln.,tl.8. � �
43F1p-Rieaee-IeFSacaL.F1. 1144 Hi9hvica Dr.. H.B. � ... �
2200 Cri,l�.ton Lane, :7:8. }52D-Ga��aYtaacti-t .
670 80th 1c+*.,Npls. � 901 2nd St. N.E., Mpis. '
300U Nanor �rive,tdpls. . 1309 ]Oth St. N.N.. St.Paul
V500 Ironton St.,AnoY.a 3375 53rd Ave. N., Brooklyn Center
8000-Yami:yrcr, 5?6P 790i-NcYirt#ei-�-�:r=-�r��i'.
10500 Ituchanan, SPLP 837 - 129th Ave. W.E.. Blaine
530-E3rd-Ay^nur.-BHine. 1300-�3�, .'.ve-il-Er-C-.N. �
200D Squire Lane, N.B. � 766 tl.E. 113th LirNe, Npls. �
5600 Glenerood, Gold�n Valley 62ii—Rice�+�eY�+c-�T �
Route 1. Crooklyn Park 900 - 127th Lane 71.E., Blafne �
10400 7(cen, Coon Rapids 7206 CarAen Fve. H.. Brooklyn Certer �
� 1769 Nillview Rd.. ILB. -Ep99-V?n-C:ure' ° •, r cm o . '
1976 76Ch St. ILW., t7_B. 15DT'Cxn:elo�ner-3
2500 Roedcrest Drive, G.6. 76G2 - 162nd Rve., Forest Lake _
7430 41est P.iver RoaC ti 7� 5814 215 lcne 7.E., kyoning�
- 750 lor^ Av_nue 1l.E., SFiF 7431 Louisana Ave.,.5t. 4����SPark
6526 67uebird Drive,l<aple Grove o52� OrCharQ Ave. . Brooklyn Park
21470 Imrocd Ave. �L,Fores: Lake zZE� Eveti Court, t78 � �
2b5�°i..-�-.t"�^ek-29-A=t-,�•8. c�:3 Lakeuuod Or.. Mpls. .. .
6524 Orchard Ave. p.,L'rooklyn Cent�r' . .
2801 L�eodcro;t Orfve, I;pis )0550 Buchanan. Biair.e.
4?A4-6th�it-r+r.E-�9: Rou.e 3. Czr.bnd9e �
31 Constznce Bivd.l.".J, Annka 77c3 Tyier St. tl.E., Hpts
3065 Sprir.^ C�eek Dr, i;.E., I-0pls: �0738 F 15*.h Ave. N., Hpls - � �
a800-Rice-t+�eek-R�;:�& Rau:e 3. itora. � .
8729-Gent+'a}-14venue I::F--r+ta73. �062 127tn Fve. d.E.,Blai�e
1630 Ls:elo:.lane .:E, .
}095-Rteesan4-kiew-Dr-k'avnds-Yieoa � .. _ �
5109 Oupcn. Ave. R.. 51p75 : � . . . .. �
3940 TYlcr St., C.lt. � - � � �
1013 Oak Rid3e CireTe tl.E., Blaine . . � � �
� 3312 Bruads:aY Y.E.. t;pls. .. . . .
� 1958 1+9?h :9ve. N.E.. Fnoka .
4658-= Gthitrl: t--t � Mc � .. . . � . . � .
2839 - 134:n Ave. !:.4:., Anoka � . �
4653'R-irt{-+'etk-Ad=:�. : . -. �
12225 Fcrgus St. . 6laine ' . � � - . � -
3949 Acthel Drive, St. Pau7 � - � � � .� �
t983 Cedar Urive, Y,e.+ W'iqhton - � , � � � . .
P.O.Co� 33, LinCstron � � � �. - � - �
� � Y133 Fain:�y Ur.. }107s: � . - � � . .
1666 - 25tn Ave.N.:J.. N.B. . . . .. . . .
1285) TaYlo�• St. N.E.. 14p1s. . � .� . .
� 19A1 Flo:m.dz hve. . �:.D. - . . . . . .
3918-1zcC.�rert-;-C-PC . . .. . . . .
2201 Uur:h L'Nland Crest. C.H. � . ' -�. . . '
97�i7 - 3rd St. N.E., FiDls. � � . . . . . .
10550 tiuct,anan St. PLE., Mpls � � . � .� � � �
3-0Oi 6enja:�:in St. Y.E., Flpls � � - _ � • �
3131 senjacin St. 11.E.. 6:Dls. ��_ . ,� �
5224 Frc:r,ont Avr. N.. llpls . � � � . �
8521_ Tyle• St. tLE.� , ttpls. . � �- . - .
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.. %' � � � SURVEY OF MIO WYS AT FRIDIEY LIQJOR . �
STWES WTSIUE OF FRIOLEY
• . . � . � H�rcA 17. 18 d .
_ a��aa
• HOILY CENTER � .. . . . . �
- � 365 Lakeview, Excelsfor 11801 - Lavack St. NSf, CR '
� )1031 Keenqcat, LR � 10916 Miss. Drfve, [Eamplin .
. � 1�30 t00th Ave. Y.W., CR �2395 Briyh2on Lane, t76 �-
� 862N�iaa-Lurem; Blaine . -2429 Aalnut Avenue, HB . �
.- .� � . 631 Janesvflle, Npls. . � _ � .. � .
. . 2852 121St Lanc B.St. t � � �. . . � .
� . 5131 Irving Ave.. Mpls. � - - . . � .
• � � 4310 Tyler, W1 � . � - � . ` �
_ � � 7A2 64tA Ave. N., Brooklyn tenter � � � . . - �� �
.. 3i3iist'�eC,�tN� . . .. . . . .
� � � 591 102th Rve. N.Vf.,.CR . . - . . � ..
37M Colfax S., F;pls. � � . :. . - . . .
� � I1A20 Monroa, 67ainc � � � � �
� � 228C Oa}.r.roW Urivc, t'.au�s Yiew � ... . � . _ �
Bl�iB-1F.HH�CR-S�!cect«14D1.sr. - . . ..
. . 41D1 Parklar.n i�ve. So., Npls. � . . .. . . .
� 191 �ogan Ave. I;o.. ::pls. . . .r .
. � G311 Squire Dri��e h.E., ? � . � �
. - � 1176 128th Ave. ILE., Elaine � � � . . '� .
� 490 G9th I:ay ILE., Blaine � � �
�� 65D7 62nd A:•e. 11., Ciystal
' di01'Ricate•eeY.-Ad.,.,_2 �
� 16G32 Zeni St. t:.7, �f.noka
7679 Knol?tr�od ^ur., I!pls. .
� � 505;-Ftadise.rSt,-t�.E- y4
� 1271 11. Piinr.ehaha, 5t. Paul
- Route 3, Princeton �
� 1242 Sarcer.t Ave., St. Paut �
� G093-ifashi.u^Fn-St:�,--SP�P
i92
5-6tk-St.—.�.-E-:; SPLP . . .
- 7839-Vrrivcrs4-!Y-++venueJl�.�SPl-0 . � � . .
� - � 6741 �toble banc, Nrooklyn C_nter . � _ �. � ' .,
- � 5735 Swth Lim+ood Dr�,; Wyondng � . � .. �� _ .
�� . � 809G Urbandale Lane, ? � .. .
. . Boz 39. tiaple Lake. Ftinn. � .. . � � � .. . � .
�3860-6Fh-Sr'!�f-: � CH � . . . . �
� 9613 Flintr.00d X., Biaine � � - � � � '
_ Columbia HeiShts Branch P.O., Ftpts. - � �� � � �� � � -
� � 11197 N.E. 3rd St., Glaine • + � � � �
. � 10J47 Y�gnolia, CN � • . . .
� ' 861G Mattson 'uraok lane, Broaklyn Park - - � � �
. . 7925-btASi._.:t:f.�:,-SPIP . . � ..
' � 5040 Pennir.e. F+pls.21 � � � .
' .� 758 945tEv.. Olaine � � � � . ... � .
� � � qiA-]9tlWay;-Si9.N � .. .. � .
1242 Sargcn[ :a•en:ie, St. Paul - - - . . . - ..
� lOG E. 9th St. , �7m�ris � •- � - �
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EXHIBIT "B"
���I,v� �c�s��r � ���c��ES, !� �
Midtand Bank Building Minneapolis, Minnesota 55402 612/333-5511
November 11> 7977
Marvin C. Brunsell
Assistant City Manager / Finance Director
City of Fridley
6431 University Avenue N.E.
Fridl�y, Minnesota 55432
Dear Mr. Brunsell:
Thank you for your letter of November 2, 1977. Sippel, von Kuster would be
pleased to assist the City of Fridley in the analysis of present/future municipal
liquor operations. Our firm has considerable experience in this area and'we are
confident of providing you with useful information.
As to preliminary estimates of cost, these are quite difficult to project with-.
out being much more specific about the research questiAns at hand. Your letter
mentions two 9eneral topics; 1) the feasibility of opening up a new off-sale
outlet, and 2) the effect that this might have on existing store sales. Each of
these questions can be appr�ached in a variety of ways and with different levels
of sophistication. For example, we have conducted survey research efforts ranging
between 52,000 and �8,000 on these very topics. In short> t�ir Brunsell, we.will
need to know a bit more about your liquor operations before we can ofter a defin-
itive proposal with cost estimates.
I would suggest that a preliminary audit of existing operations be performed to
help us frame the research problem more specifically. The cost of such an audit
is $750 and will require the better part of a day "on site" askina questions and
touring existing facilities and potential locations. The result of this audit
will be a written report eva}uating a variety of operational components which
relate to the two topics suggested in your letter. Examples of these include:
• the competitive environment
• share of market (including an estimate of total sales potential)
� store management and personnel
• condition and adequacy of facilities
• marketing activities {price policy, promotion, location, and
product selection)
In addition>
specifically
cost.
the report will offer apparent recommendations in these areas and
detail what questions remain, how tney can be answered, and at what
. . ..
,
� .
Marvin C. Brunsell
Page 2.
EXNIBIT "B"
We feel strongly that this type of approach (the audit) is well worth the invest-
ment and can actually save you money in the long run by insuring that you receive
exactl the type and quantity of information.you really need. We are much more
interested in developing a strong working relationship with the City of Fridley ,
and making sure you are a satisfied client, than we are in rushing into an expen-
sive process like survey research in a topic as complex as municipal liquor.
I hope that you share my opinion on this matter and that we will be working toge-
ther in the near future. Please call if you have a�y questions.
Si erely
�
Curtis L. Sippel
President
�
CLS:cr
.
�° nuM w
■Y�r � ■ ■■ . / ■�1�� ■i���./� •. =. �• .
:�::� �� :��.� .�;���'_�:���a���e�� , . ., '..- - '. " ...:.
November 14, 1977
�
Mr. Marvin C. Brunsell
Assistant City Manager/Finance Oirector
City of Fridley
� 6431 University Avenue N.E.
Fridley, Minnesota 55432
Dear Mr. Brunsell:
Thank you ior contacting Midwest Pianning and Research, inc. We are interested
in providing the Cifiy of Fridley with market potential estimates for their municipal
liquor operation.
.�
PURPOSE
As we understand, you would like to have a projection of potential business volumes
which a new municipal off-sale liquor store near 53rd Avenue and Central Avenue
would attract, The estimate should include a break out of the portion that would
be developed to the detriment of existing municipal off-sale stores in the Holly
Center and at 6289 Highway �65.
QUALIFICATIONS
Midwest Planning and Research, Inc., has completed similar studies for both public
ond private clients. I have been directly involved with analysis of severa( munici-
pal liquor operations. The brochure describes Midwest Planning and Research, Inc.
in a general way and lists some typical projects and clients. My resume is bound at
the back.
APPROACH
We would survey to determine your existing market areas for the existing stores by
expanding your sample of check addresses and by direct interviews in the existing
stores. This would serve rtot only to define market area for each store but to define
the level of market penetration within each area. Competitive facilities would be
inventoried and analyzed.
EXHIBIT "C"
� Mr. Marvin C. Brunsell
(�tovember 14, 1977 . Ppge Two
Based upon the information on existing stores and our experience on performing similor
analysis, we would define a study area surrounding the new location. Analysis of
study area information would lead to delineation of a market area and projection of
potential performance ot the new location. This potential performance would be con-
verted into facility specifications, such as square feet of building and parking. Finally,
impact on sales and facility requirements at existing locations will be concluded.
Results will be presented in a suitably illustrated report form. Supportive data, analysis
and conclusions will be included. •
COSTS AND TIMING
Assuming fhat we do not put together financial proformas, the study should cost about
$3000. One to two months will be required for completion.
While you are considering this preliminary response, we expect to have an opportunity
to visit each of your locations and to inspect the customer distribution data you have
assembled. At that point, we would be pleased to meet with you for detailed dis-
cussion and submit a specific proposal letter on a cost plus, not to exceed maximum
basis.
Yours very truly,
MIDWEST PLANNING AND RESEARCH, WC.
/-, �.�/� l�'�' +�' / �! �� //7 , �„_
/ �` L�7�[�� \� �_ ,�:�i�,�.,s��
; 1
�' f! James T. Christensen
r,! Vice President �
:/
JTC/sd (802}
E�closure
4
a
EXHIBIT "D"
PAGE WHITMORE CONSULTING SERVICES
� 52� Wast Leke Nokomo Parkway Minrospolis, Minnesou 55417 (612) 722-0373
� VAGE WHITMORE November 4, Zg%%
Mr. Marvin C. Brunsell
Asst. City Manager/Finance Director
City of Fridley
6431 University Avenue N.E.
Fridley, Minnesota 55432 ''
Dear Mr. Brunsell:
Inasmuch as my own marketing research activities are in
the area of industrial technology I am unable to respond
to your November 2 inquiry regarding a survey.
I am forwarding your inquiry to Dr. Ronald G. Klietsch,.
a social scientist with a broad background in the type'
of survey you seek. Perhaps Ron can be of help to you..
PGW:dmo
Sincerely,
;,J ����.�.�..
. Page G, hitmore
�s.;e7-.��r.;�:r'.
� � ii(.. ���
,1�1' i: Y1.....R..
j '`.� �w.. va,. .
r �', 6,
i
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_" �.
�:,µ�� ti��/ f
EXHIBIT "E"
����i �� �������
B�S1 UNlVERSITY AVENUE N.E.. FRIDLEY, MINNES07A 55432
TELEPHONE (612�571-3450
•�'!'`;�,, ,'� Navember 2] , 1977
H
Mr. Curtis L. Sippel, President
Sippel, von Kuster & Associates, Inc.
734 Midland Bank Building
.. Minneapolis, Minnesota 55402
Dear Mr. Sippel:
This letter is a follow up to our letter of November 2, 1977.
Ne are furnishing you with additional information on our sales
and profits. Attached you will find a copy of the liquor ,
statement for the year ended December 31, 1976 (Exhibit "A",
pages 27 - 32, audit). I am also enclosing the statement for
the first nine months of 1977 (Exhibit "B").
I am also enclosing the sales history for each•of our stores for
the last five years (Exhibit "C").
Also, enclosed is a survey conducted by our auditors, George M.
Nansen Company (Exhibit "D").
Also, enclosed is a chart showing the relationship between floor
space, and sales of some municipal outlets (Exhibit "E").
Obiectives•
Again, I want to emphasize the objective of the study is to determine
what affect opening a neai liquor outlet at the Target property, 53rd
and Central, would have on the sales of our tYio existing stores, and
an estimate of what we could expect the sales to be at the new store.
If you �vish to meet to discuss the matter further, please caTl.
Yery truly yours,
Marvin C. Brunsell
Asst. City h19r./Fin. Oir.
MCB:sh
Enclosures
�
`
ASSETS
CITY C�F FRIDLEY, MINNESOTA
LIQUOR FUND
@ALANCE SHEET
DECEt48ER 31, 1976
`Current assets
Cash
Investments, at cost plus accrued interest
Accounts receivable - Anti-trust
Inventory, at cost
Contract for deed receivable
Prepai d expenses
Total current assets
Property, plant and equipment, substantially all at cost
Land and buildings
Furniture, fixtures and equipment
Signs and automotive
Less accumulated depreciation
Net property, plant and equipment
Exn; b; t x i x
EXHIBIT "A"
1976
$ (1,541)
215,191
1>679
130,494
14,128
359,951
$195,600
62 ,926
13 194
271,720
50,467
221,253
Other assets
Contracts for deed receivable, less current portTOn $120,814
Anti-trust accounts receivable, less current portion 3,353
Total contracts for deed and anti-trust receivable 124,167
Total assets 5705,371
LIAB�LITIES, RESERVE AND RETA?,JED EARKINGS
wrr2nt liabilities
Accounts payable
Accro�d sales tax
Total current liability
Reserve for Anti-trust
Reiained earnings
Total liabilities, reserve and retained earnings
$ 7,593
5,021
6,714
� 5,032
$693,625
$705,371
See accompanying tlotes to Financial Statements.
0
I
-2]-
1975
$(23,276)
196,784
1,736
127,851
13,103
7,318
323,516
5195 ,600
62,826
13,194
�1 ,620
42,291
229 ,329
$134,943
5 107
14Q,050
$692,895
5 6,389
6,389
� 6,844
$679,662
5692,895
�.
�'.
�
�
z
CITY OF FRIDLEY, MItlNESOTA
LIQUOR FUND
ANALYSIS OF CHANuES IN RETAIf�ED EAfLYINGS
YEAR Et�DED DECEMBER 31
Retained earnings
January 1
Net Income
Transferred to General Fund
Retained earnings
December 31
Exhibit XX
EXHIBIT "A"
1976 1975
$679,G62 $663,723
98,963 90,939
85,000 75,000
$693,625 �679,662
See accompanying Notes to Financial Statements:
��
4
CITY OF FRIDLEY, MINNESOTA
LIQUOR FUNO
STATEMEFlT OF INCOME
YEAR ENDED DECEMBER 31
Combined
1976 1975
EXHIBIT "A"
Store No. 2
1976 1975
Sales $1,061,562 bl>100,224 -0- '
Cost of Sales . 847,082 868,456 -0-
Gross Profit � 214,480 � 231,76II -0-
Percent of sales 20.2 21.1 -0-
Qperating expenses $ 151,851 $ 164,453 -0-
Percent of sales 14.3 15.4 -0-
Operating profit (loss) $ 62,629 $ 62,315 -0-
Percent of sales 5.9 5.7 -0-
Other income $ 36,334 $ 28,629 $4>752
Percent of sales 3.4 2.6 -0-
Net income $ 98,963 $ 90,939 $4,752
Percent of sales 9.3 8.3 -0-
See accompanying Notes to Financial Statements.
-29-
-0-
-0-
-0-
-0-
-0-
_p_ :r
-0-
_�_
$5,217
-0-
$5>217
-0-
R
�.
�
f
�
i_
. ,
.. I
i I
i I
- I
I
.. '
Y
A-
� 1 �
�ti
Store No. 3
1976 1975
$540,235 g538>352
432,207 431,612
$108,028 $106,740
20.0 14.8
$ 7b,287 $ 89,051
14.1 16.5
$ 31,741 $ 17,6fi9
5.9 3.3
$ 19,171 � 15,11U
3.5 2.8
$ 50,912 � 32,799
9.5 6.1
Store No. 4
1916 1975
$521,327 $561,872
414,875 436,844
$106,452 $125,028
20.4 22.3
$ 75,564 $ 80,402
14.5 14.3
$ 30,633 $ 44,626
5.9 7.9
$ 12.411 $ 8,297
2.4 1.5
� 43,299 $ 52,923
8.3 9.4
-30-
Exhibit XRI
EXHIBIT "A°
<�
r
4
CITY OF FRIDLEY, MINNESOTA
LIQUOR FUND
STATEMENT Of OPERATING EXPENSES
YEAR ENDED DECEMBER 31
'Combined
1976 1975
Operating Expense
SelTing
Salary - Clerks $ 72,721 5 75,706
Bags & Wrapping 2,590 2,738
- Uncollectable Checks 136 1,527
Cash Shortage 16 38
Other Selling Expenses -0- 1 586
75,463 81,595
Percent of Sales 7.1
dverhead
U'tilities $ 8,585
` Insurance 7,344
Rent 8>057
Laundry 885
Repair & Maintenance 1,864
Supplies 185
Gommunications 1,039
Alarm Service 485
Advertisinn 1,379
Depreciatian 8,175
Other Overhead Expense 2,475
$ 40,523
Percent of Sales 3.8
General
Management Expense $ 18,508
Inventory Control 6,235
Accountirg 5,u99
Warehouse Expense 21Z
Data Processing 4,575
Other �enerel
Overhead Expense 636
35,865
Percent of Sales 3.4
Store No. 3
1976 T975
$ 35,849
1,347
82
(31)
-0-
37,247
$ 40,401
1,439
728
51
1,585
44,204
Exi�ibit XXII
EXHIBIT "A"
Store No. 4
1976 1975
$ 36,872 $ 35,305
1,243 1,299
54 799
47 �13 )
-0- 1
38,216 37,391
7.4 fi.9 8.2 7.3 6.7
$ 9,288
7,100
7,932
872
4,486
844
1,29II
725
970
8,731
2,328
$ 44,574
$ 5,641
3,870
-o-
430
808
143
678
274
689
6,885
1>429
20,787
$ 6,303
3>851
-0-
' 381
2,507
655
788
397
300
7,184
i,302
$ 23,668
4.1 3.8 4.4
$ 17,177 $ 9,419 � 8>405
5,329 5,173 2,607
9,058 2,9�0 4,432
3>024 109 1,480
7,533 2,328 3,686
1,163 324 569
43,284 1t3,253 21,179
3.9 3.4 3.9
$ 2,944
3>524
8,057
455
1,056
42
421
211
640
1>290
T,046
19,736
3.8
$ 9 ,089
3,062
2,799
103
2.>247
312
17,612
3. 4
$ 2>985
3,249
7,932
491
1,979
189
510
328
670
1,547
1,026
20,906
3.7
$ 8,772
2,722
4,626
1,544.
3,847
594
22,105
3.9
To`al Operdting Expense �151,851 S169=453 . 76 237 89 O51 75�504 5 80,402
Total Percent of Sales 14.3 15.4 14:1 16.5 14.5 14.3
See accompanying Notes to Financial Statements.
-31-
�_
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, I
i.
i.
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� N. I
, '
4
CITY OF F"TDLEY. MINNESOTA
LIQUOR FUIJD
STATEt1cNT OF CNn�;GE; 1N fi^�AfiCIAL P�"�SITIOtV
YEAR ENDED DECEMBER 31, 91;,
SOURCE OF FUNDS
Operations:
Net income for the year
ItQms not requiring current outlay of funds
Repreciation
Decrease in long term contracts receivable
Mti-trust receivables used
Total operations
APPLICATION OF FUNDS
Purchase of fixed assets
Transfer to General Fund
Increase in working capital
Decrease in anti-trust reserve
Total application of funds
�i Uarious Elements of Net Increase in
Worktng Capital:
� . Cash
Investments
Accounts receiva6le
� � Ipventories
Contract for deed receivable
Accounts payablp
Prepaid expenses
� Total
�
J
� � � � -32-
Exhibi t XX11I
EXHIBIT "A"
$ 98,963
8,175
14,129
1,754
�'5123,021
$ 100
85 ,000
36,170
1,811
$123,021
$ 21,735
18,4G8
(57)
2,643
1 ,025
(326)
7 318)
36,110
�� , fXHIBIT "B"
�� CITY OF FR��LEY
�
i101 UNIVERSITY AVENUE ,N.E., FRIDIEY, MINNESOTA 6547]
rj TELEPHONE (812)571-3450
� hiEN� T0: NASIM M. QURESHI, CITY MANAGER, AND CITY COUNCIL
fROM: NIARUIN C. BRUPISELL, ASST. CITY MGR./FIN. DIR.
SUBJECT: LIQUOR FUND STATEMENT FOR THE fIRST NINE MONTHS OF 1977
DATE: OCTOBER 20, 1977
Attached herewiLh are the financial statements for the Municipal Liquor Fund
for the first nine months of 1977.
Cost of sales have been reduced by pranotional allowances received. Sales
have been reduced by refunds given on empty bottles and cases. ,
You will find the following in this report:
Page 1. Balance sheet or condition of the business as of September 30, 1977
Page 2. An overall comparison of the profit and loss for the liquor
operation.
Page 3. A detailed comparison of the combined off-sale operations.
Pages 4, Profit and loss statements for each of the package store operations
5 and 6. in detail.
Pa9e 7. Sources of other revenue.
Page 8. A statement of changes.in surplus. This statement shows the.current
surplus to be $476,924.29 as of September 30, 1977. The surplus
invested in fixed assets is $2t7,702.68.
Fage 9. Sales and net profit of the Fridley Liquor Stores presents a history
of the liquor operation from the 6eginning. It shows the equity in
the business to be $694,626.97 as of September 30, 1977. This shows
that a total of 52,098,609.24 has been transferred to other funds
since the municipal liquor operation began. ,
Based on net worth of $706.261 on September 30, 1976 the liquor operation earned
a return on investment of13.22% during the last twelve-month period.�
���y
�
'',�.re�
{.
s
1
EXHIBIT "B"
T0: NASIM M. QURESHI, CITY MANAGER, AND CITY COUNCIL -
SUBJEGT: LIQUOR FUND STA7EMEN7 FOR THE FIRST NINE MONTNS OF 1977
DATE: OCTOBER 20, 1977
PA6E 2
The net profit for the nine month period was $61,000.66, compared to
�66,598.50 in 1976. Gross profit is up $4,919, however, expenses are
also up, more than wiping out the increase in gross profits.
One item of expense that is up considerably for the period is insurance.
Insuranceexpenses have risen by $3,076 for the period. Another item _
showing a significant increase is repair and maintenance which rose from
$1,274 to $2,946. Other than that, the only other large increase in
expenses has been in the selling salaries. This item is up by 7.2%.
Part of the larger normal increase for salaries is caused by the payment
of unemployment compensation in 1977 where none was paid in 1976. Total
labor hours are down sli9htly. .�
Third quarter profits would have been ahead of 1976, except for the large
increase in insurance expense. As it is, profits are down by $682 for the
quarter!
�- ' �
S' -
ASSETS
Current assets
Cash
ACCOUnts receivable - Anti-trust
Inventory, at cost
Contract for deed receivable
Prepaid expenses
Total current assets
CITY OF FRIDLEY
L�U_OR FUND
BALANCE SHEET
SEPTEMBER 30, 1977
1977
� 358,745
1,499
131,612
7,261
2,852
501,969
Property, plant and equipment, substantially all at tost
Land and buildings $ 198,641
Furniture, fixtures and equipment 62,538
Signs and autanotive 13,629
Less accumulated depreciation
Net property, plant and equipment
Other assets
Contracts for deed receivable, less current portion
Anti-trust accounts receivable, less current portion
Total other assets
Total assets
IIABILITIES ANd RETP.INED EP.RN:NGS
Current liabilities
Accounts payable
Accrued sales tax
Total current liability
Reserve for Anti-trust
Retained earnings
Total liabilities and retained earnings
-1-
56,185
218,623
$ 47,100
3 102
50,202
$ 770,794
$ 7,886
3,679
,565
S 4,601
754,628
$ 770,794
EXHIBIT "B"
1976
$ 276,877
1,368
131,625
3,369
1,830
415,069
$ 195,600
62,926
13,194
48,427
. 223,293
$ 134,937
5,107
. 140,044
$ 778,406
$ 22,499
3>173
25,672
$ fi,475
746>259
$ 778,406
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Liquor
Beer
Mix
CITY OF FRIDLEY
f+�JNIC�PAL lIQUOR STORES
PROFIT & LOSS STATEMENT
NINE MONTHS ENDING SEPTEMBER 30, 1977
Beginning Inventory & Purchases
Less Ending Inventory
'Cost of Sales
Gross Profit
6ross Profit �
Uperating Expenses
Selling
Salary-Clerk
Bags & Wrapping
Cash Shortage
Uncollectable Checks
Sales Tax Shortage
Selling Hours
Overhead
Utilities
Insurance
Rent
Laundry
Repair & Maint
Supplies
Coironunications
Alarm Service
Advertising
Depreciation
Other Overhead
enance
Expenses
General
Management Expense
Inve�tory Control
Accounting
Warehouse Expense
Data Frocessing
Otfier General Overhead
Ho�rs
Total Operating Expense
�perating Income
Other Income
Net Pro€it (Lass)
COMBINED OFF SALE
EXHIBIT "B"
Third Quarter Third Quarter First 9 Months first 9 Months
1977 1976 1977 1976
; 153,357.85
137,241.74
8 499.28
. 299,048.87
$ 371,398.70
131,611.69
239,787.01
59,311.86
19.83�
f 18,041.80
703.19
(20.03)
50.98
33.15
18,809.09
3,012
E 2,488.60
2,851.62
2,058.00
287.09
670.69
230.65
373.64
86.00
111.15
2,033.49
757.17
1,948.10
$ 4,613.38
1,221.14
1,313.98
24.00
1,486.57
19.23
8,678.30
747
39,435.49
9,876.37
3 755.58
3 631.95
$ 135,416.32
122,092.60
7,472.93
264>981.85
� 340,988.27
131,625.40
209,362.8
55,618.98
20.99�
$ 17,189.79
488,90
(42.92)
-0-
17,635.77
2,937
� 2,916.37
1,829.54
2,033.00
266.41
496.64
55.57
236.85
66.00
-0-
2,045.10
410.26
10,355.74
$ 3,716J2
921.87
1,100.91
24.00
839.81
180.71
6,784.02
716
$ 34,775.53
20,843.45
4,853.11
25,696.5fi
-3-
$ 433,833.46
362,298.74
20 977.97
8U,110.17
$ 785,734.56
131,611.64
654,122.87
162,987.30
19.95%
$ 57,620.68
2,035.32
(5.99)
103.72 :
-0-
59,753.73
9>161
$ 6>859.06
8,fi40.85
6,174.00
833.82
2,946.45
464.82
975.82
218.00
363.15
6,592.31
7 730.T1
35>798.39
$ 15,871.62
3,786.75
3,506.22
72.00
4,263.15
585.47
28,085.21
2,490
$ 123,637.33
39,349.97
21,650.69
61,000.66
$ 410,033.31
325,073.95
19 270.88
754,378.74
$ 727,934.85
13},625.40
596,309.45
158,068.69
20.95�
$ 53,748.13
1,835.77
1.96
135.46
-0-
55,721.32
9,071
$ 6,518.03
5,564.32
5,999.00
632.11
1,214.23
158.20
776.80
191.80
339.67
6,135.30
2,122.45
29,651.91
$ 14,056.25
3,960.04
4,744.19
188.50
3,536.90
331.15
26,817.03
2,b53
$ 112,190.26
45,878.43
20,720.07
66,598.50
�
«-
�
Sales
Liquor
Beer
Mix
�iir �r rK1ULCT
MUNICIPAL LIQUOR STORES � EXHIBIT "B"
PROFIT & LOSS STATEMENT
NINE MON7HS ENDING SEPTEMBER 30, 1977
Beginning Inventory & Purchases
Less Ending Inventory
Cost of Sales
Gross Profit
Gross Profit �
Operating Expenses
SeTling
Salary-Clerks
Bags & Wrapping
Licenses
Uncoltectable Checks
Cash Shortage
Other Selling Expenses
Selling Hours
STORE #2 -.3710 East River Road
Overhead
Utilities
Insurance
Rent
Laundry
Repair & Maintenance
Supplies
Comnunications
Alarm Service
Advertising
Depreciation
Other Overhead Expenses
General
Management Expense
Inventory Control
Accounting
Warehouse Expense
Data Processing
Other General Overhead
Hours
Tbtal Operating Expense
Operating Income
Other Income {Expense}
Net Profit (Coss)
THIRD QTR
1977
$ 1,046.59
�1,046.59
-4-
THIRD QTR FIRST 9 MOS
1976 � 1977
$ 1,168.11 $ 3,229.II5
1,168.11 3>229.85
�
FIRST 9 MOS
1976
$ 3,604.46
3,604.46
� CITY OF FRIOLEY
,..� , � MUNICIPAL LIQUOR STORES
PROFIT & LOSS STATEMENT
pINE MONTHS ENDING SEPTEMBER 30, 1977
Sales
Liquor
Beer
Mix
STORE �3 - 6289 HIGHWAY �65
THIRD QTR.
1977
� 77,933.36
70,939.40
4,715.09
$ 1 3,5�87.85
Beginning Inventary & Purchases $ 199,574.26
Less Ending Inventory 76,449.35
Cost of Sales. $ 123,]24.91
Gross Profit � $ 3D,462.94
6ross Profit % 19,83�
Operating Expenses
Selling
Salary-Clerk
•Bags & Wrapping
Uncollectable Checks
Cash Shortage
Other Selling Expenses
Selliny .iours
Overhead
Utilities
Insurance
Laundry
Repair & Maintenance
Supplies
Cortmunications
Alarm Service •
Advertising
� Depreciation
Other Overhead Expense
6enerat
Management Expense
Inventory Control
Accounting
Warehouse Expense
Data Processing
Other General Overhead
Hours
Total Operating Expense
Operating Income
Other Income (Expense)
Net Profit (Loss)
S 8,741.29
374.74
.00
8.67
.00
$ 9,124.70
1451
E 1,904.55
1,461.42
147.12
381.50
191.86
209.95
41.55
59.43
1,716.72
388.91
6,473.01
$ 2,372.86
627.62
674.69
12.34
763.65
10.47
4,461.63
3E5
20 059.34
10 ,403 . 60
1,454.90
71,858.50
THIRD QTR
1976
$ 70,461.13
62,535.85
4,285.75
137,282.73
$ 187,244.52
77,581.05
$ 109,663.47
$ 27>619.26
20.12%
$ 8,560.96
261.05
.00
(45.89)
.00
$ 8>776.12
1437
$ 1,934.61
953.74
126.70
254.28
41.49
147.15
41.55
.00
1,722.33
231.70
5,453.55
$ 1,926.55
479.27
572.40
12.74
436.39
92.62
3,519.97
371
$ 17 749.64
9,869.62
2,670.47
12,540.09
' EXHIBIT "B"
FIRST 9 MOS.
1977
$ 219,517.17
186,896.28
11,605.95
$ 418,019.4�
$ 4)1,260.65
76,449.35
3 334,811.30
$ 83,208.10
19.90�
$ 28,944.65
1,014.55
4.81 ,�
16.22
.00
$ 29,980.23
4447
$ 4,7b5.81
4,431.76
427.52
1,584.32
336.94
551.91
113.25
185.43
5,399.08
1,007.55
18,803.57
$ 8,119.92
1,937.30
1,793.78
36.84
2,181.03
299.52
14,368.34
1274
63,152.19
20,055.91
9,892.05
2 ,947.96
FIRST 9 MOS.
1976
$ 209,835.04
164,997.75
10,707.49
$ 385,540.28
$ 385,159.27
77,581.05
$ 307,578.22
$ 77,962.06
20.22q
$ 26>509.33
964.26.
81.51
(33.90)
.00
$ 27,521.20
4425
$ 4,241.54
2,915.77
292.90
504.92
129.97
460.40
718.60
169.84
5,166.99
1,245.75
15,246.68
$ 7,168.69
3,019.62
2,419.54
96.14
1,803,81
168.89
$ 13,676.69
1353
$ 56,444.57
21,517.49
10,995.32
32,512.81
, CITY OF FRIOLEY
� � �»* MUNICIPAL LIQUOR STORES
PROFIT & LOSS STA7EMENT
NINE MONTHS ENDIN6 SEPTEMBER 30, 1977
Sales
L9quor
Seer
Mix
Beginning Inventory and Purchases
Less Ending Inventory
Cost af Sales
6ross Profit
Gross Profit %
Operating Expenses
Selling
Salary-Clerks
Bags & Wrapping
Uncollectable Checks
Cash Shortage
Sales Tax Shortage
Selling Nours
Overhead
Uti}ities
Insurance
Rent
Laundry
Repair & Maint
Supplies
Communications
Alarm Service
Advertising
Depreciation
Other Overhead
enance
Expense
General
Management Expense
Inventory Control
Accounting
Warehouse Expense
Oata Processing
Other General Overhead
Hours
STORE #4 -- HOLLY CENTER
EXHIBIT "B"
Third Quarter Third Quarter First 9 Months First 9 Month=_
1977 1976 1977 T976
S 75,424.49
66,302.34
3,784.19
145,511.02
$ 171,824.44
55,162.34
11 , 62.10
2 , 8.92
19.83�
$ 9,300.51
328.45
50.98
(28.70)
33.75
9,684.39
1,561
584.05
1,390.20
2,058.00
139.47
� 319.19
38.79
163.69
44.45
51.72
316.77
$ 64,955.19
59,555.75
3,187.18
127,699.12
$ 153,743.75
54,044.35
99,699.40
27,999.72
21.93%
$ 8,628.83
227.85
-0-
2.97
8,859.65
1,�00
$ 98t.76
875.80
2,033.00
139.71
242.36
]4.08
89.70
24.45
-0-
322.77
368.26 178.56
5,475.09 4,902.19
E 2,2ao.sz
593.52
639.29
11.66
722.92
8.76
4,216.67
362
$ 1,790.17
442.60
528.51
11.26
403.42
88.09
3,264.05
345
Totat Operating Expense 19,376.15 $ 17,025.89
Operating Income ,472.77 0,973.83
Other Income (Ex ense) 1,254.09 1,014.53
Net Profit (Loss� 0,726.86 1,988.36
$ 214,316.29
175,402.46
9,372.02
399 , 090 J7
$ 374,473.91
55,162.34
3l ,3 1.57
�79,779.20
19.99�
$ 28,676.03
1,020.77
98.91 `'
(22.21)
-0-
24,773.50
4,714
$ 2,093.25
4,209.09
6,174.00
406.30
1,362.13
127.88
423.91
104.75
177.72
1,193.23
722.56
16,994.82
$ 7,751.70
1,849.45
1,712.44
35.16
2,082.12
285.95
13,716.82
1,216
$ 60,485.14
�9,294.06
8,528.79
27,822.85
$ 200,198.27
160,076.20
8,563.39
368,837.86
$ 342,775.58
54,044.35
288,731.23
80,106.63
- 21.72°6
$ 27,238.80
871.51
53.95
35.86
-0-
28,20U.12
4,646
$ 2,276.49
2,648.55
5,999.00
339.21
709.31
28.23
316.40
73.20
169.83
968.31
876.70
14,405.23
$ 6,887.56
1,940.42
2,324.65
92.36
1,733.09
162.26
13,140.34
1,300
� 55,745.69
24,360.94
6,120.29
30,481.23
�.�'►'#
STORE #2 .
STORE #3
STORE #4
CASH
DISCOUNT
$:3,304.12
3,222.27
$ 6,526.39
CI7Y OF FRIOLEY
MUNICIPAL LIQUOR STORES
SOURCES Of OTHER INCOME
ALL STORES
FIRST NINE MONTHS, 1977
COMMISSIONS
5 425.50
170.05
$ 595.55
IN7EREST
EARNED
$ 3,229.85
5,919.05
4,949.00
$14,097.90
�
EXHIBIT "B"
0
ANTI-TRUST
CREDIT TOTAL
$ 3,229.85
$ 243.38 9,892.05
187.47 8,528.79
$ 430.85 $2:,650.69
Promotional discounts which have been credited to liquor
purchases are as follows:
STORE #3
STORE #4
E 5,724.05
E 4,440.73
$ 10,164.78
-7-
�
,��, .k
CITY OF FRIDLEY
MUNICIPAL LIQUOR FUND OPERATING ACCOUNTS
STATEMEN7 OF CHANGES IN SURPLUS
PERIOD ENDING 9/30/77
CURRENT SURPLUS
Balance January i, 1977
ARDITIONS
tyet Profit 9/30/77
Depreciation of Fixed Assets
charged to operations
� Total Additions
DEDUCTIONS
Transfer to General Fund
Special assessments
5 61,000.66
6,592.31
� 60,000.00
3,041.40
BALANCE OF CURRENT SURPLUS 9/30/77
SURPLUS INVESTED IN FIXED ASSETS
Balan�e January 1, 1977
ADDITIONS
pec�a assessments .
DEDUCTIONS -
Depreciation of Fixed Assets charged to operations
BALANCE OF FIXED ASSETS 9/30/77
EXHIBIT "B"
5 a�2,s�2.�2
6 ,592.97
$ 63,041.40
� 476,424.29
� 221,253.59
$ 3,041.40
$ 6,592.31
$ 217,702.68
_g_ '
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TE
SUBJECT
P����� �i���
REC�a���'10��
City of ��idley
lII
Snowmobiling Areas
Within the City
Ci
����`r��� ���DU��
As.you are aware, the Ordinance passed in
for all practical purposes limits snowmobiling
private property, or property. which is publicly
owned with permission from the landowner.
12
XX
April of 1977
to individual's
or privately
i�ith this in mind, the Parks and Recreation Commission,
at their September 26th meetinq, unanimously voted not to
designate any snowmobile areas within the limits of the City.
As per your request, you will find attaclzed a map outlining
Moore Lake with possible entrances to Moore Lal:e marked in
red. However, I should caution you that I have discussed
use of the West side of Pioore Lake with parking in the
Fridley Junior High parking lot and crossinq the street
to the lake itself with our Public Safety Director. It is
his recor.imendation that we think seriously before creating
a possible traffic hazard. I would also mention the
possibility oE damage to this property by snowmobiles and
the cost of repair of such damage.
We must also be concerned with the school's feelings
toward utilization of their parking lot by the general public.
On the East side of tioore Lake, you are aware of our aeration
system which keeps two large areas of open k�ater throughout
the winter. We also have an ice skating rink located in
relationship to our bathing house and, therefore, I would
certainly recommend that the Council not approve snowmobiling
on East Moore Lake.
Although we are conscious of the desire for snowmobiling,
I'do believe that the time has come that the citizens must
realize that the very limited open space available in Fridley
is really not•practical for this type of activity.
If I may be of additional help, please call me.
CAB/77
i
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�.:
ORDINANCE N0.__._._
Ak-0RDIIdANCE A11fI�DtNG CNAPTER 703 StJOI•JMOBIL€S, SECTION 703.021, OP[RATION
AND GELETIP�G SECTION 703.022
THE CITY COUNCIL OF 7HE CITY Of FRIDLEY DOES ORDAIN AS FOLLOWS:
That Chapter 703, Section 703.021 be amended as follows:
�
703.-021 Operation
No person shall operate a sno��rmobile upon the road�aay, shoulder or
inside 6ank or slope of any trunk, county state aid,or county
highti•ray in this City and in the case of a divided trunk or county
hight�ray, or the right of v+ay between the opposing lanes o[ traffic
except as provided in this Ordinance. No person shall operate a
snoarmobile within the right of tvay of any trunk, county state aid, or
county highti•:ay bet�•�een the hours of one-half hour after sunset to
one-half hour before sunrise, except on the right hand side of such
right of �aay and in the same direction as the highway traffic on the
nearest lane of the road�•ray adjacent thereto. �Qo sno�amobile shall
be operated at any time within the right of way of any interstate
highs•ray or bf freeway within this �t�,i� CitY.
Pot withstandin�any statutes or
person shall operate nor shall
snoti,nnobi 1 e:
1• UPon a municipal street.
ULon public lands and fr
epp]iczble aovernmental
Upon land not his own, w
occu ant or leasee of su
aiven by a �osted notice
nr words substantially s
ordinances to the
an owner allow to
ti•ratenaays without authority
or authorized admim strativ
ut the written ermission of
ands. 4lritten permission may
t s�ecifies "Snotivmobiles kll
�a
from the
e personne
the owner
be
oi•+ed"
703.022
A'6 ��r`$6�i S{��dl 4k�E�`$�C i� Sf��l�rd�4lS,iXE dt�dli 1}Sk 1`,��}i,t df �+�� 6f iS�i�
�M1df��C1��I ���`kkt k��k�� fb� �n� l�d����d ¢�r`�d�k bf ��`����b�`��f��
��8d �f�4���d��l� f�`Qd� �Yf� �a�e� �f �li� b�lr�S�r`I'� tkS�Qkr�G� �b ��`b�k�`�3�
t�S�� ��� b��rS dd�is��`iz�A fdt �fib/��t���� �S�l 7ri� d��r`��4�` 0f ���A
$►Sc��(�s�b;�1� sF�f1a ��`bf�e� fr`4� �H� ����� df ���idefCk �6 �ri �d�ribr`�tk�
6�kr`��s��` f�`�# b�` � v��`��� r`b�f� str�s� �H31d �6l�fss�F:S �b �zX �r`r�z�aS�b�56
df Zii,iS At����irit� �(�id dttS�r` ���1�E�Skidk a��4�! 0�k�`a��b�S ,�ri �nk A,��in
�f �r( �IS� 4d1��4� k�i��k ti4��Y,9� �}i� �`if}St bf SGf� di tf��` ��t��� b�`
KaAn��f.�' ��E��t inf�r`�;�,�XE Y���l�wf�� dt f�`��tiu��ti �� r`•E�`FS�t��A ��
�dAfc��;���!t��"� 14�ti1 ���.�� as��' ��s1 E,i�)` 6�`d,�f��fit�6 dl���S� �Y�� �`b���r�b�
d9►`�t�l�` �tsd��� b�dk�1�C ��Qev6�fdK 4t` �!��aK�4�s�1 8k��',k��i �Y�k nba�`� bf
0�� I�f�f f�DySY` �fz�r` �dri��?� �b p��fN�(af }56��` �Ef��`� �d1��`�{��S 6I�a' bd�tf
�ii6ri d,��' ��1�' I�� �i� t}i� r`i�nt .n��6 A�s�� �f �dtri ��t��'� ur` i��6►��+��
�f0 9►� �fix �r���� rii�`t�¢��d�i �� �h� hir1H��1�b i�►`�ffi¢ �rf �N� �i���`��1�
1�►�� Of �N@ r`r��0s��� �s��b�C�� iY�s��`�Ldl
12 B
OP[RAT I Of�
-�:-
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AA70URNMENT:
' 12 C
il 27,1977.
y of
nate
on to
as in
tion
ing.
MOTION by Jan Seeger, seconded by Leonard Moore, to adjourn theneeting at
10;10 p.m. Upon a voice vote, all voting aye, the motion carried unanimously.
Respectfully submitted,
� t k. _ .2�Cr-t�
Ly �'e Saba
Recording Secretary