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Mounds View City Council October 27, 2003 <br />Regular Meeting Page 17 <br /> <br /> K. Consider Settlement Agreement with Elegant Thymes Catering 1 <br /> 2 <br />City Administrator Ulrich updated Council on the contract situation with Elegant Thymes noting 3 <br />that the City is projected to lose $30,000 in the banquet operation. He then reviewed with 4 <br />Council the terms of the settlement agreement. 5 <br /> 6 <br />City Administrator Ulrich indicated that the Mermaid has agreed to pay $10,000 of the $20,000 7 <br />cash settlement in exchange for managing the facility from 2003 through 2004 on an interim 8 <br />basis until the City can enter into a more permanent contract. 9 <br /> 10 <br />City Administrator Ulrich indicated that the City has been unable to locate a contract for the 11 <br />liquor portion of the banquet center and it appears as though no formal document was ever 12 <br />executed so that part of the operation is operating without a contract. 13 <br /> 14 <br />City Administrator Ulrich indicated that Staff recommends moving forward with the settlement 15 <br />agreement and accept the $10,000 from the Mermaid and that Staff be allowed to negotiate with 16 <br />the Mermaid for the balance of 2003 and 2004 and the liquor license is open for discussion. 17 <br /> 18 <br />Council Member Stigney asked if the vendor is now bonded. 19 <br /> 20 <br />City Administrator Ulrich indicated they are insured but have not posted the required bond. 21 <br /> 22 <br />Council Member Stigney asked for clarification of whether they followed the City directive to be 23 <br />bonded as per the contract. 24 <br /> 25 <br />City Administrator Ulrich indicated that no bond was provided. 26 <br /> 27 <br />Council Member Stigney asked if any litigation would be handled by the insurance carrier. 28 <br /> 29 <br />City Attorney Riggs indicated the League of Minnesota Cities would not cover it. 30 <br /> 31 <br />Council Member Stigney asked for an estimate of litigation costs. 32 <br /> 33 <br />City Attorney Riggs indicated the costs could easily go over the amount being discussed and 34 <br />indicated that the City cannot recover litigation amounts if it wins the suit. 35 <br /> 36 <br />Council Member Marty asked what date the agreement was signed. 37 <br /> 38 <br />City Administrator Ulrich indicated that it was signed October 24, 2003. 39 <br /> 40 <br />Mayor Linke indicated the City would continue to pay Elegant Thymes $1,250 for November and 41 <br />December then $1,500 for the first six months of 2004 and a cash payment of $20,000 so it looks 42 <br />like it would cost the City $31,500. He then asked for clarification on the settlement. 43 <br /> 44