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Food Service Contract • <br /> June 18, 1996 <br /> Page 2 <br /> The options the Council has are as follows: <br /> 1. Keep the contract as is and pay the 9% gross. This is the least appealing option for the <br /> Council. <br /> 2. Enter into a new lease with Ernie Swanson whereby he pays the City a rent payment <br /> for the kitchen similar to the old arrangement. <br /> 3. Provide Ernie with 90 day termination notice and do one of the following: <br /> a. Discontinue food at the Stonehouse; <br /> b. Hire our own cooks and waitresses; <br /> C. Hire another food operator (this one will be the most difficult of the three). <br /> I believe with a new manager being in the process of being hired, it may be in our best <br /> .interests to enter into a new lease with Ernie Swanson and to allow the new manager to <br /> monitor the situation and determine a course of action some time in early 1997. • <br /> The new rental arrangement agreed to by Ernie is attached with his proposed hours of <br /> operation. In addition, the City retains the ability to terminate the arrangement for no reason <br /> upon 90 day notice. <br /> RECOMMENDATION <br /> Council approval of the new rental arrangement for food service at the Stonehouse. <br />