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Item No. 7I <br />Type of Business: CB <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Charles Hansen, Finance Director <br />Item Title/Subject: Corrected Resolution 5711 Approving Payment to <br />Elegant Thymes Management Company for <br />Management of the Mounds View Banquet and <br />Conference Center <br />Date of Report: March 20, 2002 <br /> <br /> <br />The City Council approved Resolution 5711 at its February 11, 2002 meeting. <br />This resolution was prepared under the belief that we had all revenue <br />transactions for the banquet center for 2001. Shortly after February 11, <br />additional revenue transactions came in. These slightly raised the total revenue <br />and total management fees for 2001. The changes were discovered before the <br />payment authorized on February 11 was made. <br /> <br />Total revenues increased by $192.89. Under the formula used to allocate <br />management fees, Elegant Thymes fees increase by $55.46 and Innovative <br />Images fees increase by $2.41. <br /> <br />A corrected Resolution 5711 was before the City Council on March 11, 2002. It <br />was held over because it was noted that the resolution was inconsistent in that it <br />referred to gross revenues in some places and net revenues in other places. In <br />all cases, net revenue is the correct term to be used. <br /> <br />The resolution authorizes payment to Elegant Thymes of their share of the <br />management fee ($9,663.06) less previous payments. <br /> <br />The practice of obtaining City Council approval for management fee payments <br />arose in response to the practice under the previous Finance Director and <br />Banquet Manager in which the Banquet Manager was actually paid prior to <br />earning the management fee. That practice has ended. <br /> <br />Confusion over calculation of the management fee has also been resolved. The <br />City’s new auditors, MMKR, Elegant Thymes, and the City staff all agree on a <br />formula for calculation of the management fee. <br /> <br />Resolution 5711 authorizes future management fee payments once the staff and <br />Elegant Thymes have agreed that all transactions for a month have been