Agenda Packets - 2003/09/22 - Laserfiche WebLink

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Mounds View City Council September 8, 2003 Regular Meeting Page 16 1 MOTION/SECOND: Marty/Gunn. To Waive the Reading and Approve Resolution 6096 2 Authorizing a Special Election to Consider an Additional Property Tax Levy. 3 4 Ayes – 3 Nays – 1(Stigney) Motion carried. 5 6 I. Resolution No. 6098, Requiring a Performance Bond and other Compliance 7 Submittals for the Elegant Thymes Catering Contract. 8 9 City Administrator Ulrich indicated that Elegant Thymes has been managing the Banquet and 10 Community Center since 2001 and based on concerns voiced at the work session Staff reviewed 11 the contract and performance issues and is recommending approval of the attached resolution. 12 13 City Administrator Ulrich indicated that the City of Mounds View lost $37,133 in the banquet 14 operation for all of 2002 and the City lost another $16,373 in banquet operations for the first half 15 of 2003 and using the revenue decline of 30% the City stands to lose more money in 2003 than it 16 did in 2002 and that concerns the City. He then commented that the deficit between revenues 17 and expenses has grown from 15.5% to 24% for the first half of 2003. 18 19 City Administrator Ulrich indicated that Elegant Thymes has agreed to show a modest profit and 20 those goals have not been met. He then said that the contract requires commercial liability 21 insurance in amounts higher than are currently held by Elegant Thymes, a performance bond for 22 damages due to non-performance, an annual budget and a marketing plan. He further indicated 23 that Staff has written the Resolution to require immediate resolution of the issues and evidence of 24 a performance bond of $30,000 not later than five business days following approval of the 25 resolution. 26 27 MOTION/SECOND: Marty/Stigney. To Waive the Reading and Approve Resolution 6098, 28 Requiring a Performance Bond and other Compliance Submittals for the Elegant Thymes 29 Catering Contract. 30 31 Council Member Marty thanked Staff for bringing this forward as he did not know that the City 32 was losing so much and that they were out of compliance. 33 34 Council Member Gunn asked what happens if they do not comply. 35 36 City Administrator Ulrich indicated they would have 30 days to respond and if they do not they 37 would be in default of the contract and it could be terminated at that point. 38 39 Council Member Stigney asked if the marketing plan has to show how they plan on getting out of 40 debt and break even. 41 42 City Administrator Ulrich indicated there are two parts to that one is marketing the other is 43 budget. The budget demonstrates profit and loss and the marketing plan is not spelled out so that 44