Title
Authorizing the Parks and Recreation Department to increase its 2016 Como Special Fund Budget in the amount of $160,000 to reflect the current portion of the payment received from Lancer Catering for omitted commission revenue, with the 2016 amount going toward a contribution to fund balance.
Body
WHEREAS, the Department of Parks and Recreation has a vendor contract with Lancer Catering at the Como Zoo and Conservatory; and
WHEREAS, Lancer Catering self-reports commissions that the City realizes as revenue as part of the contract stipulations; and
WHEREAS, Lancer Catering recently informed Parks and Recreation that they had incorrectly categorized one of their vending carts, depicting it as a non-commission account over the last ten years with a total of $320,043 owed to the City; and
WHEREAS, there is a six year statute of limitations on contract claims, and the City would not have collected the entire amount if it had to litigate; and
WHEREAS, Lancer Catering agreed to pay the full commission owed but asked that the amount from prior to six years be spent on improvements at the Como Zoo and Conservatory; and
WHEREAS, parties further agreed that Lancer Catering would pay the $320,043 in two lump sum amounts, one in November, 2016 and the other in November, 2017; and
WHEREAS, Parks and Recreation wishes to increase the financing and spending budgets in the 2016 Como Special Fund Budget by $160,000; and
WHEREAS, the Mayor, pursuant to Section 10.07.01 of the Charter of the City of Saint Paul, does certify that there are available for appropriation, funds of $160,000 in excess of those estimated in the current Como Special Fund Budget; now, therefore, be it
RESOLVED, that the Council of the City of Saint Paul authorizes acceptance of the funds and approves these amendments for the Como Special Fund Budget.
Financial Analysis
See Attachment