Laserfiche WebLink
Mounds View City Council September 8, 2003 <br />Regular Meeting Page 16 <br />~1 <br />2 MOTION/SECOND: Marty/Gunn. To Waive the Reading and Approve Resolution 6096 <br />3 Authorizing a Special Election to Consider an Additional Property Tax Levy. <br />4 <br />5 Ayes - 3 Nays - 1(Stigney) Motion carried. <br />6 <br />7 I. Resolution No. 6098, Requiring a Performance Bond and other Compliance <br />8 Submittals for the Elegant Thymes Catering Contract. <br />1o City Administrator Ulrich indicated that Elegant Thymes has been managing the Banquet and <br />I 1 Community Center since 2001 and based on concerns voiced at the work session Staff reviewed <br />12 the contract and performance issues and is recommending approval of the attached resolution. <br />13 <br />14 City Administrator Ulrich indicated that the City of Mounds View lost $37,133 in the banquet <br />15 operation for all of 2002 and the City lost another $16,373 in banquet operations for the first half <br />16 of 2003 and using the revenue decline of 30% the City stands to lose more money in 2003 than it <br />17 did in 2002 and that concerns the City. He then commented that the deficit between revenues <br />18 and expenses has grown from 15.5% to 24% for the first half of 2003. <br />19 <br />20 City Administrator Ulrich indicated that Elegant Thymes has agreed to show a modest profit and <br />21 those goals have not been met. He then said that the contract requires commercial liability <br />~2 insurance in amounts higher than are currently held by Elegant Thymes, a performance bond for <br />23 damages due to non-performance, an annual budget and a marketing plan. He further indicated <br />24 that Staff has written the Resolution to require immediate resolution of the issues and evidence of <br />25 a performance bond of $30,000 not later than five business days following approval of the <br />26 resolution. <br />27 <br />28 MOTION/SECOND: Marry/Stigney. To Waive the Reading and Approve Resolution 6098, <br />29 Requiring a Performance Bond and other Compliance Submittals for the Elegant Thymes <br />30 Catering Contract. <br />31 <br />32 Council Member Marty thanked Staff for bringing this forward as he did not know that the City <br />33 was losing so much and that they were out of compliance. <br />34 <br />35 Council Member Gunn asked what happens if they do not comply. <br />36 <br />37 City Administrator Ulrich indicated they would have 30 days to respond and if they do not they <br />38 would be in default of the contract and it could be terminated at that point. <br />39 <br />4o Council Member Stigney asked if the marketing plan has to show how they plan on getting out of <br />41 debt and break even. <br />42 <br />3 City Administrator Ulrich indicated there are two parts to that one is marketing the other is <br />~4 budget. The budget demonstrates profit and loss and the marketing plan is not spelled out so that <br />