10.2 SR 10-21-2024The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
10.2
Meeting Date
October 21, 2024
Prepared By
Joe Audette, Liquor Operations Manager
Item Description
Northbound Liquor Store Clerk Position
Reviewed by
Cal Portner
Tina Allard
Action Requested
Discuss the part-time and full-time liquor store employee mix.
Background/Discussion
The Northbound liquor store had several staff changes in 2024. Recruitment and retention of high quality
part-time staff has been an industry challenge in recent years. Staff recommends a change to the liquor store's
part-time and full-time employee mix to meet the changing needs of the operation.
Financial Impact
The financial impact between part-time and full-time employee benefits was greatly reduced by recent
legislative changes to part-time ESST benefits.
Mission/Policy/Goal
Meet changing needs - agile
Attachments
1. June 4, 2018 City Council Minutes
2. July 1, 2019 City Council Minutes
3. November 15, 2021 City Council Minutes
Page 276 of 294
City Council Minutes
June 4, 2018
Page 4
Moved by Councilmember Olsen and seconded by Councilmember
Westgaard to accept the Comprehensive Annual Financial Report for the City
of Elk River for the year ended December 31, 2017. Motion carried 5-0.
7.1 Easement Vacation: Bryan Provo
Mr. Carlton presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to adopt Resolution 18-34 approving a Petition to Vacate a Portion of a
Drainage and Utility Easement Case No. EV 18-02. Motion carried 4-0.
Councilmember Ovall abstained.
7.2 Easement Vacation: Thomas Newstrom
Mr. Carlton presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Moved by Councilmember Wagner and seconded by Councilmember Olsen
to adopt Resolution 18-35 approving a Petition to Vacate a Portion of a
Drainage and Utility Easement Case No. EV 18-03. Motion carried 5-0.
8.1 Hire Additional Full Time Liquor Store Clerk
Ms. Ziemer presented the staff report.
Councilmember Ovall asked if Northbound and Westbound each do their own
scheduling and if there may be a scheduling conflict for a new person. Mr. Audette
clarified the new person would be working at the Northbound location. If council
approves the hiring of an additional full-time liquor store clerk, they would primarily
work at the Westbound location with occasional coverage at Northbound.
Councilmember Wagner asked for clarification that the city would be hiring a full-
time employee to replace a recent retirement and wanted to hire an additional person
to replace two recent part-time employee resignations. She understood the
convenience factor but questioned the necessity.
Mr. Audette stated a full-time employee would be more sustainable and be easier to
schedule. An additional full-time person would alleviate having to post for open
positions and go through the hiring process as often. Ms. Ziemer added many of the
current part-time employees have full-time jobs and want to limit the hours they
work at the liquor stores to avoid bum out.
IOtEIEI BE
NATUR€
Page 277 of 294
City Council Minutes
June 4, 2018
Page 5
Councilmember Olsen asked how many full-time and part-time employees the liquor
store employs. There are currently 6 full-time employees and 20 part-time employees.
Ms. Ziemer clarified there would be negligible financial change for the 2018 budget
but the cost of benefits would factor in 2019.
Moved by Councilmember Olsen and seconded by Councilmember
Westgaard to hire an additional full-time liquor clerk to be utilized by
Northbound and Westbound liquor stores. Motion carried 4-1.
Councihnember Wagner opposed.
8.2 Discuss Work Session Items
Mr. Portner presented the staff report.
Councilmember Olsen requested the Council prioritize the list of work session items.
Councilmember Wagner wished to add she asked City Engineer Justin Femrite about
the process to lower the speed limit on County Road 12. Since the area is in
development due to the addition of roundabouts, it may be a good time to work with
Sherburne County to conduct a speed study.
Councilmember Olsen expressed concerns with the current speed limit on County
Road 30.
Councilmember Wagner also wished to look into alternative funding for trail
projects.
Councilmember Westgaard felt the Park and Recreation Commission should be
providing this type of information to the Council. He also wanted to caution the
Council about providing staff direction on individual projects versus Council -led
initiatives.
Mayor Dietz said a speed study is typically completed by MnDOT and said the
Council should be prepared they may not like the results as sometimes speeds are
increased based on driver behavior.
Councilmember Wagner clarified she brought the concern because it was part of her
ward and she felt it should be addressed.
Mr. Portner asked if Mr. Femrite could develop written materials to outline the
process of determining speed limits.
The Council also asked for information on what authority the council has on
determining and changing speed limits.
VArEAEA B9
rE
Page 278 of 294
City Council Minutes Page 8
July 1, 2019
Arena Commission Review
City Hall Security
Snow and Ice Control Policy
9. Council Liaison Updates
Council provided updates on the activities of the various boards and commissions as
also noted in the respective board's minutes.
10.1 Compensation Plan Amendment and IT Division Staffing
Mr. Portner presented the staff report. He discussed the advantageous of a phased
retirement plan. He further discussed how the transition would work for the IT
manager. He stated bridging the retirement with the hiring of a new manager would
be helpful for succession planning.
Council concurred on changing the policy and bringing the item back for
consideration at a future meeting.
Council questioned the financial impact.
Mr. Portner stated there would be an impact in the IT Division with the hiring of a
manager, but the current manager's salary would be reduced in half due to reduced
hours. He stated the rest of the benefits, such as vacation would be reduced
proportionately for the current manager.
10.2 Liquor Operations Reorganization Plan
Mr. Audette presented the staff report. He noted they have an unusual situation
where they received a significant number of higher qualified candidates than
expected. He stated he anticipated they would be hiring internally for an assistant
liquor operations manager but would like to change the organizational structure and
hire a manager for each liquor store because they had two very good external
candidates. He further discussed the advantageous of how this change would help to
free up his time to focus on the liquor operations as a whole.
There was discussion on the budget impact, which was unknown due to many
variables. Mr. Audette noted, via attrition, he wouldn't be replacing certain positions,
which would help reduce the budget impact.
Councilmember Wagner stated she would like to see a return on investment brought
to the liquor operation if this change were approved.
Mr. Audette felt this could be difficult to quantify.
INATUR
Page 279 of 294
City Council Minutes
July 1, 2019
Page 9
Mr. Portner noted the odd situation as this is the first time in a very long time the
liquor stores have been fully staffed. He stated, historically the stores haven't utilized
their full allotment of part-time hours. He discussed some future retirements that
could occur. He noted this is an enterprise operation and when there are part-time/
full-time vacancies it can create stress and pressure. He stated this change would
create some stability and allow for more flexibility in the interim.
Mayor Dietz stated he believes the organization change is worth it if there are good,
qualified managers but it would be different if it affected the city budget versus the
enterprise fund.
Councilmember Wagner expressed concerns with future competition so she is
unsure about changing the structure. She stated there are not enough details on
knowing the full impact of these changes. She stated the budget increase takes away
from investment into the park and recreation improvement fund. She would like the
added position to pay for itself.
Mr. Audette discussed the customer service aspects of a city liquor operation, noting
a fully -staffed, highly -trained, management team is important.
Councilmember Westgaard stated he has no issues with the request noting it is
difficult to find good employees.
Councilmember Christianson stated he would like more information and suggested
further discussion at the next Council meeting.
Mr. Audette expressed concern with losing candidates if this item is delayed.
Mr. Portner stated competition and legislative changes will cause evaluation of the
liquor operations regardless of the organizational changes being considered tonight.
Councilmember Wagner stated there are no numbers of how this change will affect
the budget and profits.
Mr. Audette stated part-time hours will be reduced which will help offset some costs.
Councilmember Wagner stated she will support it but when it comes to budget
planning she will expect further review.
Council consensus to move forward with the organizational changes.
II. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 9:17 p.m.
ETURE
Page 280 of 294
City Council Minutes Page 8
November 15, 2021
Dan Krueger outlined his concept to council.
Council consensus was to allow a townhome development in the area requested.
9.4 Liquor Store Full Time Position
Mr. Audette presented the staff report.
Mayor Dietz asked how much sales have increased in the past two years and the cost
of hiring a full-time person with benefits. Mr. Audette noted sales have increased
over $1 million in the past two years.
Ms. Ziemer stated the cost of a full-time person with benefits would be $60,000-
70,000. If the city did not replace the vacant full-time position and filled it with part-
time staff, there would be a savings of about $12,000. Several part-time staff would
need to be hired to cover the hours of a full-time position.
Mr. Colotti added that full-time staff also have different responsibilities and authority
than part-time staff.
Councilmember Beyer asked the point of having part-time employees. Mr. Audette
stated the original intent was that part-time staff were able to fill in shifts without
overstaffing of full-time employees. Now the situation is reversed, and the stores
could likely function better with full-time staff rather than part-time.
Councilmember Westgaard recommended the Council look at staffing and what the
headcount should be for the liquor stores.
Council was in favor of allowing the full-time position.
Mayor Dietz reminded Mr. Audette that he had said he would not need additional
full-time staff during a past meeting and cautioned him about making promises to
the Council he couldn't keep.
9.5 Capital Improvement Plan
Ms. Ziemer presented the staff report.
Staff were in attendance to answer questions on their portion of the plan.
Council asked about the replacement of the fire ladder truck and fire engine and
would like to have a future discussion on fire vehicles. The $2.8 million needed for
repayment of the debt for the vehicle replacements would have to be put on tax levy.
P 0 V E R E 1 8 1
1 ATURE
Page 281 of 294