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LIQUOR COMMITTEE MEETING February 27, 2017 A regular meeting of the City of Jackson Liquor Committee was held on February 27, 2017 at 6:00 P.M. in the City Council Chambers of City Hall with the following persons in attendance: Liquor Committee members Dave Cushman and Brandon Finck, City Administrator Jennifer Bromeland, Liquor Store Manager Greg Zurbey and Recording Secretary Dave Maschoff. (Liquor Committee member Matt Madden was absent.) (A quorum of the Liquor Committee was present.) SUNDAY LIQUOR SALES UPDATE Liquor Store Manager Greg Zurbey reported the Minnesota Senate approved legislation on February 27" allowing Sunday liquor sales. He said the Senate’s action follows approval of Sunday sales legislation by the Minnesota House. Zurbey said there are differences between the House and Senate versions of the legislation regarding hours of operations. He said those differences will need to be worked out in a conference committee. Zurbey said if signed by the Governor, Sunday liquor sales could be available by the Fourth of July. Cushman commented he can see where the Sunday liquor sales may be more of anissue in the metro area than here in Jackson County. Zurbey said he didn’t think Sunday liquor sales would have a big impact on the Jackson Municipal Liquor Store. He pointed out the supporters of Sunday liquor sales are now already proposing the elimination of City exclusivity for liquor stores and the elimination of the municipal liquor industry. Zurbey noted the important role municipal liquor stores play in the community. He said municipal liquor stores are involved in the community by providing donations for charitable fundraising and events, fund City owned amenities and offset the need to increase property taxes. Zurbey asked would a private liquor operation do the same. He said that’s unknown, but they wouldn’t have to participate in the community if they didn’t want to. Zurbey said the Minnesota Municipal Beverage Association (MMBA) has been promoting community involvement of municipal liquor stores and promoting that the dollars people spend in the community stay in the community. Zurbey said another forthcoming change, separate from Sunday sales, will be the elimination of 3.2 beer. He said that may bring up an issue for the City in the future in regards to convenience stores. Zurbey noted convenience stores who now sell 3.2 beer on Sundays won't have that product to sell anymore and may look at wanting to sell hard spirits. He said that may be another legislative issue that will need to be addressed. Bromeland thanked Zurbey for the legislative update regarding Sunday liquor sales. The consensus of the Liquor Committee was that they will continue to discuss the Sunday liquor sales issue over the next few months and see what other Cities are doing. They will also look at the costs and factors surrounding Sunday liquor sales. LIQUOR STORE MANAGER’S REPORT Zurbey reported on the monthly analysis of the liquor store for the month of January, 2017. Zurbey reported the guest count was down 245 people in January of this year compared to the same month last year. He pointed out a couple of sales days were lost this year verses January of 2016 which did have some influence on the overall monthly figures. However, Zurbey said the decline in numbers has a lot to do with the issues that have been discussed in the past regarding the local economy. Zurbey pointed out invoices in January were down $5,324.22, total sales were down $3,745.07 and gross profits were down $244.13 in comparison to January of 2016. Zurbey said the average “per sale” in January was up 0.57 cents compared to January of last year. Zurbey noted the store’s profit margin percentage still remains high, so margins are still good Finck asked about losing a couple of sales days. Zurbey explained the store lost a couple of sales days because of calendar days in January. Finck noted with the two extra sales days figured in, this year’s monthly statistics for January would be about the same as the January 2016 statistics. Zurbey said this year’s January statistics were very close to the statistics for January of last year. Zurbey said February sales have been going well. He noted there is always a spike in sales when the weather gets nice or it gets bad with a snowstorm. Zurbey said February had a very nice weekend and also a snowstorm. ZURBEY ACCEPTS MUNICIPAL LIQUOR STORE MANAGER'S POSITION IN BIG LAKE, MINNESOTA Zurbey said he has submitted his 30 day notice of resignation to City Administrator Bromeland. He explained he has accepted the municipal liquor store manager's position in Big Lake, Minnesota. Zurbey said he and Bromeland are working with Assistant Liquor Store Manager Melissa Voss regarding the day to day operations of the store before he leaves. Cushman congratulated Zurbey on the new position and thanked him for getting the Jackson Municipal Liquor Store headed in the right direction. Bromeland echoed Cushman’s comments. She said the Liquor Committee is very excited for Zurbey for his new position in Big Lake. Bromeland said they understand why he is moving on and it will be a good position for him in Big Lake that has a population of over 10,000 people. Zurbey said there two large lakes in Big Lake and the community hosts major ice fishing contests and snowmobile events during the winter in addition to summer activities. He said Big Lake is at the northern most point of the light rail system and there are a lot of people moving to Big Lake as an alternative to the urban lifestyle. Zurbey noted the community of Big Lake has seen quite a bit of growth. He said the City built a new municipal liquor store a few years ago in a strip mall and three years ago they moved the store to the other end of the strip mall to take advantage of a larger space. Zurbey said the move to Big Lake will also put him a lot closer to his family. He explained he will be less than a 40 minute drive to family verses 3 hours from Jackson. Zurbey said it will also put him within two hours to the family cabin compared to 5 hours from Jackson. Zurbey said a new position wasn’t something that he was actively seeking all the time, but the opportunity in Big Lake presented itself and offers the next step in his career. He said his new position will be more of a manager's position dealing with numbers and programming. Zurbey said the previous manager at Big Lake served for 30 years and retired on January 1". He said the Big Lake municipal liquor store wants to implement new technology and do more marketing. Zurbey said Big Lake is so close to the metro and are impacted by some of the chain stores in that area. Zurbey said his goal is to try and make the transition of operating the Jackson Municipal Liquor Store as smooth as possible before he leaves. With no further business, the meeting was adjourned. David A. Maschoff, Heacof——