Agenda Packets - 2003/11/10 - Laserfiche WebLink

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Mounds View City Council October 27, 2003 Regular Meeting Page 18 Mayor Linke indicated that he is concerned with the City entering into contracts and not allowing 1 time to follow through on them before breaking them. He further commented that it has only 2 been 10 months since this vendor began managing the banquet center and that is not enough time 3 to get things going. He then said he feels the City should take more time to really look into the 4 options over there before making a hasty decision. 5 6 City Administrator Ulrich indicated the dollar amounts are in consideration that the City is 7 terminating the contract early and an attempt to be fair to both parties as well as an attempt to 8 give the City an alternative to generate more revenue which he believes is possible. 9 10 Council Member Marty indicated he does not remember having discussions about a contract with 11 Roberts at a Council level and had assumed the liquor was contracted out. 12 13 Tom Hutchinson, attorney for Greg Waste, indicated that they believe there is a contract in force 14 that was in place with Greg’s father and now the successor entity. He then said that even if there 15 is no paper contract there is an established contract through pattern and practice and his client 16 feels that he has contract rights with regard to the liquor portion of the vendor concession and 17 would maintain that contract needs to be held in place until the parties can finalize something in 18 the future. 19 20 Mr. Hutchinson indicated that he was pleased to hear the City Administrator say that Staff 21 recommends an RFP after an interim period because Roberts has an interest in making a proposal 22 for the catering. He further commented that he and the City Attorney may disagree but he feels 23 the City is required to do an RFP. 24 25 Mr. Hutchinson indicated that it is Roberts’ expectation that it will continue on as the liquor 26 vendor until something is established by the parties. 27 28 Mayor Linke said he does not see how a profit can be made when you take into account the costs 29 to get out of the contract along with the operating loss. 30 31 City Administrator Ulrich indicated that he believes the banquet center could go from losing 32 $37,000 this year to gross revenues in the range of $5,000 to $6,000 per month. 33 34 Economic Development Coordinator Backman estimated that it is doable to have 20 of the 30 35 days booked per month and they feel that by July of 2004 the City should be breaking even with 36 the costs being encountered. 37 38 Mayor Linke indicated he feels that 20 days is reasonable. 39 40 Council Member Marty asked whether the mermaid feels that 20 days is realistic. 41 42 Cindy Winegardner from the Mermaid indicated there would be a bit of lead time but they feel 43 that they absolutely can book it 20 days per month. 44 45