Agenda Packets - 2003/01/27 - Laserfiche WebLink

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Mounds View City Council December 30, 2002 Regular Meeting Page 8 315 Council Member Stigney asked why it was not possible to straighten out the language and allow 316 for an incentive. 317 318 City Administrator Miller indicated that the portion that deals with catering does respond to the 319 concern that if the contractor does not provide the service they will not derive revenues so that 320 portion of the contract should allay any fears. 321 322 Mayor Sonterre explained that if there is no catering business there is no money made even if the 323 flat fee for management is made. 324 325 Council Member Stigney asked whether there is an amount that has to be produced or not. He 326 then said he is concerned that this contract will straighten out one issue and create another one. 327 328 City Attorney Riggs indicated there was a practical question of how the contract was interpreted 329 and this is in response to how best to simplify it. He then said there is an operational contract 330 and there is an incentive because if they do not have events there is nothing to be made on the 331 catering side of the business. 332 333 Council Member Stigney asked whether, in the opinion of the City Attorney, this is the best 334 contract for the City. 335 336 City Attorney Riggs commented that the question was subjective but said based on discussions 337 with City Staff and the vendor, this is the best solution to resolve past difficulties and make it 338 more efficient for the finance department to deal with. 339 340 Mayor Sonterre asked Finance Director Hansen if this is the best financial contract for the City. 341 342 Finance Director Hansen indicated he was very comfortable with how the contract is proposed 343 and recognizes that the contractor could make the management fee with no efforts but that fails 344 to recognize that the management fee is a small part of what the contractor makes off of the total 345 operation so it is not in their best interest to do anything less than their absolute best to maximize 346 profits. 347 348 Council Member Stigney commented he is not worried they will do nothing but is concerned that 349 they will not do as much as Council thinks should be done. He then asked if the contract could 350 be terminated if Council is unhappy with the revenues. 351 352 City Attorney Riggs indicated that paragraph 12 requires that the contractor meet the goals of the 353 City Council and, if not met, there would be a breach of contract and the relationship can be 354 severed. 355 356 Mayor Sonterre commented that this is not a new vendor as they have been with the City 357 performing well for several years. 358 359