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Mounds View City Council October 14, 2002 <br />Regular Meeting Page 16 <br /> <br />November 21, 2001. He also noted that there was a document included that had been put <br />together by the Finance Director with input from the City Administrator. <br /> <br />Council Member Stigney asked for a legal recommendation on the matter. <br /> <br />City Attorney Riggs said he thinks it is best to have closure on the matter. He then said that <br />Council has before it information on what is perceived to be owed and what is owed by the City <br />according to the Finance Director as well as the request and he is not sure what the request is <br />based upon. <br /> <br />Mayor Sonterre indicated that the $7,500 settlement number did not come with any detailed <br />explanation as to where that number was derived from. He then said he would like to know what <br />that number represents. <br /> <br />Finance Director Hansen explained that during 2001 the City retained the services of MMKR to <br />review contracts and one of those contracts was the Innovative Images contract. He then said <br />that the evaluation was made that Innovative Images was overpaid leaving an amount of $1,901 <br />owed to the city as of December 31, 2000. He then said that based on the fact that Elegant <br />Thymes took over management of the banquet center in the spring of 2002, the City sought to <br />pay Elegant Thymes for the appropriate share of the management fees regardless of who <br />managed the center and allocated the money between the two firms based on business that was <br />conducted under their management. <br /> <br />Finance Director Hansen indicated that, based on that information, $2,587 was owed to <br />Innovative Images and, taking the $1901 to the City for 2000 and the $2,587 from the City to <br />Innovative Images for 2001 the net is that the City owes Innovative Images $686.00 based on the <br />records and work of MMKR. <br /> <br />Mr. Linke indicated the problem with those numbers is that they should be based on who wrote <br />the contracts that got the business into the facility and Elegant Thymes did not do that through <br />2001. He then said that Innovative Images wrote most of those contracts and the payment should <br />be based not on who was managing the facility but on who wrote the contract that brought the <br />business to the City. <br /> <br />Mayor Sonterre asked if that is in the contract. <br /> <br />City Administrator Miller said no. <br /> <br />Mr. Linke said yes. He then said there are conflicts as to amounts due based on net and gross <br />including all fees collected which the City claims are not correct but that is a different issue. He <br />then said that, as he understands it, his attorney came up with legal fees that have been expended <br />and they want to get out of this thing and are willing to settle for $7,500. <br /> <br />City Administrator Miller reminded Council that these numbers were put together by MMKR <br />based on an analysis of the contract.