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City Council Minutes February 27, 1984 Page Two a high of approximately $250,000 and that at that time, the City Council specifically requested that the liquor store inventory be maintained at an approximate $175,000 figure. The City Administrator indicated that this proposed inventory level was arrived at through comparisons with other muni- cipal liquor stores and discussions with the City's auditors. The City Administrator indicated that a monthly review of the liquor store inventory was done throughout 1982 in order to maintain the approximate $175,000 limit. The City Administrator indicated that during the year 1983, the monthly review was discontinued and two actual physical inventories were taken. The City Administrator indicated that it was apparent that it was the practice of the liquor store manager to decrease inventory at the time of the physical inven- tory count and then to allow the inventory to increase substantially. The City Administrator indicated the practice of decreasing the inventory at the physical inventory count caused shortages in the popular items which then created customer dissatisfaction and loss of sales. The City Administrator indicated that in addition to the problems of shortages and the loss of customer business, the excessive high inventory resulted in loss of interest income, as money was tied up in liquor inventory. The City Administrator indicated that Mr. Dahlberg's management style did not encourage any creative thinking among his employees or particiaption of his employees in the decision making process. The City Administrator indicated that Mr. Dahlberg did not adequately communicate information relative to the operation of the store, the goals of the store or other related information -to his employees in order for them to do an effective job. The City Administrator indicated that one specific example of Mr. Dahlberg's management style was demonstrated in the recent attempt to replace the cooler doors and shelving at the municipal liquor store. The City Administrator indicated that Mr. Dahlberg had a specific design of the shelving units and cooler doors to be used and the assistant manager suggested an alternate design of the shelving units and cooler doors. The City Administrator indicated that Mr. Dahlberg was not open to the assistant mana- ger's suggestions and in fact, threatened to fire the assistant manager in the event he generated any other ideas or attempted to discuss activities regarding the liquor store or its operations, with the City Administrator. The City Administrator indicated that he had arranged a joint meeting with the liquor store manager and the assistant manager regarding the design and purchase of the shelving units and cooler doors for the liquor store. The City Administrator further indicated that Mr. Dahlberg did not discuss alternate designs after the meeting with his assistant manager, and simply resubmitted his design. The City Administrator further indicated that Mr. Dahlberg's handling of the assistant manager's suggestions only resulted in a negative reaction from that particular employee. The City Administrator indicated that Mr. Dahlberg's management style is clearly one which is inefficient, ineffective and demonstrates incompetent behavior on behalf of Mr. Dahlberg. The City Administrator indicated that in the summer of 1983, Mr. Dahlberg agreed to participate in a promotion of Coca Cola products sponsored by Viking Coca Cola, and in this promotion, Mr. Dahlberg agreed to display a certain quantity of Coca Cola products in the Elk River Municipal Liquor Store for a certain designated period of time. The City Administrator indicated that in return for Mr. Dahlberg's agreement to display the Coca Cola for a certain length of time, and in a certain quantity, the Viking Coca Cola Corporation offered Mr. Dahlberg shares in stock in the Coca Cola Company. The City Administrator indicated that Mr. Dahlberg accepted five shares of Coca Cola Stock valued at approximately $300.00 for participating in the Coca Cola promotion. The City Administrator