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Mounds View City Council March 27, 2000 Regular Meeting Page 5 Mayor Coughlin asked the Council if anyone would like to remove Items for discussion. Council Member Stigney stated he had inquired that date regarding items listed in Item A, Just and Correct Claims, however, he had not yet received the responses. He indicated he did not object to approving this item, with acknowledgement that he does not have the answers at this time, and assuming the answers are satisfactory. Council Member Marty requested Item C be removed from the Consent Agenda for further discussion. MOTION/SECOND: Marty/Stigney. To Approve the Consent Agenda for Items A, B, and D as presented. Ayes – 4 Nays – 0 Motion carried. Council Member Marty stated Item C is the City’s agreement with Elegant Thymes Catering. He indicated Article 2, which states “Termination may be made by either party without penalty or cause” does not specify a time frame, however, Article 5 refers to a 30-day time period, and prior to this, there is reference to a 180-day time period. He inquired if 30 days would be sufficient time to obtain a new vendor, if the catering company were to terminate their contract. City Attorney Long stated Finance Director Kessel has been involved in the substantive negotiations of the terms of this agreement, however, he believed the practical effect of this agreement is that in order to terminate, the caterer must provide 180 days notice before the end of the initial term. He stated Article 2 pertains to termination without penalty or cause, and Article 5 sets forth a two step process, which requires the City give a 30-day written notice of a failure to meet conditions, and provides a 30-day time period in which to rectify this. He explained that this actually translates into a 60-day time period, which could be extended if desired. He pointed out that the last paragraph of Article 2 indicates that Elegant Times Catering may also terminate the agreement by providing 60 days notice, therefore, the minimal amount of time the City would have would be the 60 day notice period in those clauses, which would typically be acceptable. He pointed out that they would not wish to lengthen the time period too extensively, as this might result in being locked in to a problematic situation. Mayor Coughlin clarified that the first item, which indicates 180 days, provides that either party could terminate after 6 months. He explained that Article 2 is case specific, in that if the catering company fails to meet the terms of the agreement, the City’s course of action would be to give written notice, after which they would have a 30-day period in which to attempt to rectify the situation. Council Member Marty stated he was concerned that the catering company might decide to terminate their contract at a time when there are a number of bookings scheduled. City Attorney Long explained this would begin as a three year agreement with Elegant Thymes Catering, unless either party were to give 180 day notice to terminate the contract for any reason. He stated Article 2 specifies that if there is a failure to meet the terms of the contract, they would either have to provide the City 30 days notice, or the City would have to provide them with 30 days, which represents a 60-day time period. He indicated the last paragraph in Article 5 states