Minutes - 2002/12/30 - Laserfiche WebLink

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Mounds View City Council December 30, 2002 Regular Meeting Page 8 Council Member Stigney asked why it was not possible to straighten out the language and allow for an incentive. City Administrator Miller indicated that the portion that deals with catering does respond to the concern that if the contractor does not provide the service they will not derive revenues so that portion of the contract should allay any fears. Mayor Sonterre explained that if there is no catering business there is no money made even if the flat fee for management is made. Council Member Stigney asked whether there is an amount that has to be produced or not. He then said he is concerned that this contract will straighten out one issue and create another one. City Attorney Riggs indicated there was a practical question of how the contract was interpreted and this is in response to how best to simplify it. He then said there is an operational contract and there is an incentive because if they do not have events there is nothing to be made on the catering side of the business. Council Member Stigney asked whether, in the opinion of the City Attorney, this is the best contract for the City. City Attorney Riggs commented that the question was subjective but said based on discussions with City Staff and the vendor, this is the best solution to resolve past difficulties and make it more efficient for the finance department to deal with. Mayor Sonterre asked Finance Director Hansen if this is the best financial contract for the City. Finance Director Hansen indicated he was very comfortable with how the contract is proposed and recognizes that the contractor could make the management fee with no efforts but that fails to recognize that the management fee is a small part of what the contractor makes off of the total operation so it is not in their best interest to do anything less than their absolute best to maximize profits. Council Member Stigney commented he is not worried they will do nothing but is concerned that they will not do as much as Council thinks should be done. He then asked if the contract could be terminated if Council is unhappy with the revenues. City Attorney Riggs indicated that paragraph 12 requires that the contractor meet the goals of the City Council and, if not met, there would be a breach of contract and the relationship can be severed. Mayor Sonterre commented that this is not a new vendor as they have been with the City i performing well for several years.