6.8. SR 02-08-1999
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ITEM #6.8.
MEMORANDUM
River TO:
FROM:
Mayor and City coun9) _
Patrick D. Klaers, Ci~inistrator
February 8, 1999
DATE:
SUBJECT: Municipal Liquor Store Update
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It is recommended that the city enter into a contract with former liquor store
manager Fritz Dolejs for consulting services for Northbound Liquor. We are
looking at using Fritz's expertise and services for about 3 months at $1,000
per month. On a weekly basis, Fritz will be reviewing the liquor and wine
invoices, the receiving reports, the weekly sales reports, and the work
schedules. Additionally, on a monthly basis, review of the "quantities on
hand" report, and the "best yesterday" sales report will take place. Contact
with Fritz will be by fax, mail, and telephone - and maybe even in person
from time to time. In general, Fritz will help us monitor the liquor, wine,
and beer purchases regarding the type of product, the volumes obtained, the
prices paid, and the mark-ups. This work includes a review of inventory
turnover.
It is expected that we will no longer need services from Fritz once a new
manager is hired and on board. This is expected to happen by the end of
April. The response to the ads has been heavy, and we have sent out a
surprisingly large number of applications to interested parties. The response
to the liquor store manager position is completely opposite from the response
we are getting for the city planner position. There is a great deal of interest
in our liquor store manager position, and this is a pleasant surprise.
The application deadline is Friday, February 19. Staff will be doing the
initial screening of the applications and will be getting the two
councilmembers involved once we are down to the top ten or so in order to
select a reasonable number for interviews.
Recommendation
It is recommended that the City Council enter into a contract with Fritz
Dolejs for consulting services related to the municipal liquor store in the
amount of $1,000 per month for the duties outlined above.
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13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425
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This item will be withdrawn from the agenda if the city has not received
assurances from PERA that the contract is not a continuation of Fritz's
employment with the city. Once PERA has signed off on a contract
arrangement, then council approval will be requested.
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February 1, 1999
Mr. Fritz Dolejs
7129 East Broadway #77
Mesa, AZ 85208
Dear Fritz;
RE: CONSULTING SERVICES LEITER OF UNDERSTANDING
As we have discussed previously, you are willing to serve as a city consultant to the municipal liquor
store. The City Council has agreed in concept to contracting with you for certain liquor management
services.
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The services requested include but are not limited to the following: Monitor liquor, wine, and beer
purchases including price paid, volume, and product. Monitor inventOl)' turnover. Check pricing and
markup to maintain profit margin. The infonnation requested in your January 26, 1999, letter will be
provided in order for you to provide the services requested. You will communicate your findings to the
City Administrator and Assistant Liquor Store Manager. This can be done by phone, fax, in person, or
other means as appropriate. You will be compensated $1,000.00 per month for your services; your
compensation will not be based on the number of hours needed to perform the services requested. You
will be reimbursed for customary out of pocket expenses. The City has the right to cancel this agreement
at any time if the services requested are not provided to the City's satisfaction or are no longer necessary.
The City is pleased you have agreed to offer your services until a Liquor Store Manager is hired. If you
are in agreement with the terms outlined in this Letter of Understanding, please sign below and return it
tome.
Sincerely yours,
~~1(7~
Patrick Klaers
City Administrator
Accepted:
Fritz Dolejs
Date
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13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (6]2) 441-7425