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Mounds View City Council October 27, 2003 <br />Regular Meeting Page 17 <br />• 1 K. Consider Settlement Agreement with Elegant Thymes Catering <br />2 <br />3 City Administrator Ulrich updated Council on the contract situation with Elegant Thymes noting <br />4 that the City is projected to lose $30,000 in the banquet operation. He then reviewed with <br />5 Council the terms of the settlement agreement. <br />6 <br />7 City Administrator Ulrich indicated that the Mermaid has agreed to pay $10,000 of the $20,000 <br />8 cash settlement in exchange for managing the facility from 2003 through 2004 on an interim <br />9 basis until the City can enter into a more permanent contract. <br />10 <br />11 City Administrator Ulrich indicated that the City has been unable to locate a contract for the <br />12 liquor portion of the banquet center and it appears as though no formal document was ever <br />13 executed so that part of the operation is operating without a contract. <br />14 <br />15 City Administrator Ulrich indicated that Staff recommends moving forward with the settlement <br />16 agreement and accept the $10,000 from the Mermaid and that Staff be allowed to negotiate with <br />17 the Mermaid for the balance of 2003 and 2004 and the liquor license is open for discussion. <br />is <br />19 Council Member Stigney asked if the vendor is now bonded. <br />20 <br />1 City Administrator Ulrich indicated they are insured but have not posted the required bond. <br />2 <br />23 Council Member Stigney asked for clarification of whether they followed the City directive to be <br />24 bonded as per the contract. <br />25 <br />26 City Administrator Ulrich indicated that no bond was provided. <br />27 <br />28 Council Member Stigney asked if any litigation would be handled by the insurance carrier. <br />29 <br />30 City Attorney Riggs indicated the League of Minnesota Cities would not cover it. <br />31 <br />32 Council Member Stigney asked for an estimate of litigation costs. <br />33 <br />34 City Attorney Riggs indicated the costs could easily go over the amount being discussed and <br />35 indicated that the City cannot recover litigation amounts if it wins the suit. <br />36 <br />37 Council Member Marty asked what date the agreement was signed. <br />38 <br />39 City Administrator Ulrich indicated that it was signed October 24, 2003. <br />40 <br />41 Mayor Linke indicated the City would continue to pay Elegant Thymes $1,250 for November and <br />42 December then $1,500 for the first six months of 2004 and a cash payment of $20,000 so it looks <br />~3 like it would cost the City $31,500. He then asked for clarification on the settlement. <br />4 <br />