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<br />I <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />January 23, 1990 <br /> <br />Page 11 <br /> <br />Council Business, continued <br /> <br />Childs noted that operating revenues for 1982-1989 were generally <br />flat, and operating income has remained in negative amounts for the <br />last three of four years. However, the revenues from the Powerhouse <br />check cashing operations and the fees from the charitable gambling <br />organizations have allowed for small net profits. <br />Based on declining income, staff has discussed various factors and <br />issues surrounding four possible alternatives: <br /> <br />1, Continue to operate under current practices. <br />2. Keep both operations open, but make major changes in <br />management policy. <br />3. Close the Powerhouse and make major management changes <br />at the Palmer Drive/Brandywine Facility. <br />4. Close the Powerhouse and sell the Palmer Drive/ <br />Brandywine Facility. <br /> <br />Severa 1 members of the audi ence expressed the i r concern of the <br />possible closings, and suggested that a conclusion one way or <br />another is needed. <br /> <br />Council expressed their concerns as to the feasibility of the City <br />continuing to operate the liquor business. Council feels there is <br />a need to define the options/alternatives, financial estimates, <br />personnel issues, and creation of a timeframe. <br /> <br />The Council has scheduled a work session on February 6th at 7:00 <br />p.m. to discuss the Liquor Operation Issue. The City Manager will <br />meet with liquor operation employees to discuss options and time <br />frames and to hear ideas to increase efficiency of the operation. <br /> <br />Margaret Egan, Finance Director, presented a resolution authorizing <br />loan agreement for contractor's payment. <br /> <br />Egan explained that the City acts as the contracting party with the <br />treatment plantls construction firm. The Army is a third party in <br />this arrangement and forwards money when the City approves payment <br />to the construction firm. <br /> <br />The January payment was held by the City, because of a delay in <br />receiving payment from the Army. However, arrangements have been <br />made for the Army to reimburse the Ci ty I s costs. Fi rstar New <br />Brighton agreed to loan the City the payment funds. The loan from <br />Firstar is helpful as it eliminates the need for the City to call <br />any investments and provides an undisputable statement of costs. <br />The payment amount due to the Contract was nearly $255,000. <br /> <br />Council Business <br /> <br />Liquor Operations <br />Report <br />Report 90-22 <br /> <br />Loan Agreement for <br />Contractorls Payment <br />Report 90-23 <br />Resolution 90-09 <br />