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<br />I <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />August 14, 1990 <br /> <br />Page 5 <br /> <br />Council Business, continued <br /> <br />Benke verified that Larry Laukka did not received any payment for <br />his services in regards to recommendations for the downtown plan. <br /> <br />Childs reaffirmed that the decision to close the Powerhouse is not <br />based upon Headstart's interest. The decision was based upon <br />previous Council discussions of the future of the City's 1 iquor <br />operations. <br /> <br />Childs said Headstart has indicated they will need about six weeks <br />for remodeling and occupation needs to take place before December <br />31, 1990, to meet Federal guidelines. Glison feels that remodeling <br />the facility would cost several thousands of dollars. <br /> <br />Kris Nelson, Powerhouse employee, enjoys working at the Powerhouse <br />and noted the large weekend crowds. <br /> <br />Benke said the decision to close the Powerhouse has not been easy <br />for the Councilor for the employees. Benke reaffirmed that in no <br />terms is the decision a reflection on staff's performance. The <br />decision revolves around profits and the fundamental conflict of the <br />City being in the liquor business. <br /> <br />Childs recommended an alternative: based upon Council decision to <br />close and a lease agreement with Headstart for occupation before <br />December 31st, the official closing date would be around November <br />15th, or if the Headstart 1 ease is unsuccessful, the cl os i ng date <br />would be December 31st. Childs acknowledged that this alternative <br />does leave some uncertainty for the employees. <br /> <br />Brandt Rebelein said the primary issue is that of the government <br />being in a business which could be operated as well or better by <br />private enterprise. The government's responsibility is to provide <br />services to its citizens, but liquor operations is clearly not a <br />required service. She would not want to see a delay in the closing <br />jeopardize a lease agreement with Headstart. <br /> <br />Childs said he will keep the- employees notified of any changes in <br />the closing date. <br /> <br />LeFevere said the City could provide severance pay only to those <br />employees whose labor contract specifies such a clause. The City <br />does not have the authority to issue severance payments to employees <br />without such a labor agreement. The labor contract will be reviewed <br />to determine if these obligations exist. <br /> <br />Council Business <br /> <br />Future of Powerhouse <br />Report 90-177 <br />