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M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 02--Banquet Center Mgmt Agreement--Kathleen Miller.doc Item No. 2 Type of Business: WS WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Kathleen Miller, City Administrator Item Title/Subject: Banquet Center Management Agreement Date of Report: March 5, 2001 Background The Mounds View City Council entered into an Agreement (attached) with Innovative Images on December 7, 1998 for the management and marketing of Mounds View Community Center Banquet Facility. Per the Agreement, Images was paid $18,000 for the year ending 1999. The Agreement clearly states under Article II, on page two (2), “The City will make monthly payments to Images based upon actual gross revenues. Payments will be made within fifteen (15) days following the end of the month for that month’s actual gross revenues.” It has recently come to my attention that this has not occurred, rather Images has been paid on a monthly basis based upon estimated revenues for the year 2000, resulting in an overpayment of $8,092.71. I have attached for your convenience a report I requested the Finance Department provide which illustrates this overpayment. The Finance Department has been directed that all future payments will be in conformance with the City’s Agreement with Images. Staff is seeking City Council direction regarding the overpayment of $8,092.71 to Images. Options for your review include: 1. Bill Images for reimbursement of the $8,092.71 overpayment, allowing thirty days to correct the problem, per section IV of the Agreement. 2. Seek reimbursement over a period of time, with interest. 3. Deduct 15% from future payments made to Images until the City is reimbursed in full. Respectfully Submitted, ___________________________ Kathleen F. Miller City Administrator