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City of Mounds View Staff Report <br /> April 1, 1999 <br /> Page 2 <br /> marketing with us allowing us to receive more exposure at a lower overall cost. It has also <br /> provided food at community type events substantially below its normal costs (Girl Scout Father <br /> /daughter dance and spaghetti dinner at$3.50 per person, Irondale Band Boosters swing dance - <br /> die at$0.50 per slice, etc.) If we do not maintain some type of exclusive arrangement, it has <br /> indicated that it is less likely to continue to provide these services at the aforenoted prices. <br /> Other banquet centers have indicated that they have one full time employee who deals with <br /> scheduling banquets during normal business hours. In addition, they need additional personnel to <br /> deal with nights and weekends. An exclusive arrangement results in less staff time to manage. <br /> The more caterers we allow, the more time it will take to oversee. At the present time, our <br /> arrangement with Innovative Images is $18,000 or a% of the gross. For the first year, $18,000 <br /> appears to be the compensation that will be paid. After factoring in payroll taxes, etc., this would <br /> be equal to less than '/2 of a full time position. If the City was to hire employees to perform these <br /> duties, it is estimated that it would be one full time employee plus additional help for nights and <br /> weekends. With an exclusive arrangement for the food catering,there will be less time required <br /> insuring that a caterer has valid licenses and insurance, and less time monitoring, overseeing, <br /> coordinating between events, collection our percentage (if we require a%), etc. If there is <br /> damage done to the Facility, with multiple vendors it may be harder to determine who is to be <br /> held responsible. If we allow multiple caterers, Innovative Images has indicated that it may <br /> request that her contract be renegotiated. <br /> Elegant Tymes has indicated that if there is not an exclusive arrangement, it will not provide <br /> some of the services that it presently provides. In addition, if there is not a house caterer, costs <br /> will increase for some items (transporting linens, china, etc.) and some items that the caterer is <br /> presently providing would have to be paid for by the City - dish washer, industrial coffee pot, etc. <br /> Attached is a letter outlining additional items to be consider from Innovative Images. <br /> Options: <br /> 1. Exclusive arrangement as presently contemplated which may assist in establish the <br /> Banquet Center by developing a partnership with a caterer and use the resource of both <br /> parties to market and promote the facility. Control rates charged by maintaining control <br /> over the prices charged. Evaluate the arrangement after a period of time to insure that it is <br /> functioning as envisioned. <br /> 2. House caterer with exclusivity for certain days of the week(Thursday - Saturday). <br /> 3. House caterer with approved list of additional caterers. Additional caterers would need to <br /> be approved by City and provide copy of caterers license, insurance, etc. and method to <br /> charge a set fee or% fee for providing catering services at the Facility. <br /> 4. Allow anyone with a caterers license to provide food service. <br />