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Home My WebLink About15.C.2. Cotract Extension for Beverage and Snack Vending l~c .2, CITY OF SHAKOPEE MEMORANDUM CONSEf~lm To: Mayor and City Council Mark McNeill, City Administrator From: Mark Themig, Parks, Recreation, and Facilities Director Meeting Date: December 20, 2005 Subject: Contract Extensions for Beverage and SnaCk Vending INTRODUCTION City Council is asked to authorize an extension of our vending contracts with Midwest Coca-Cola Bottling Company and Midwest Vending for a period of one year. BACKGROUND AND DISCUSSION In 2002, the City requested proposals for beverage and snack vending for City buildings and park facilities. Midwest Coca-Cola Bottling Company was awarded the contract for beverage vending, and Midwest Vending was awarded the contract for snack vending. Both contracts were for a three-year period with one-year optional extensions at the discretion of the City. (See attached.) Both vendors have provided good service, and I am recommending that we extend the contract for an additional year. In 2006, we will want to consider requesting new proposals that reflect the additional facilities that would be available to a vendor in 2007: neW Public Works building, Huber Park, 17th Avenue Sports Complex, Schleper Stadium. In addition, we will want to consider beverage service forthe upcoming 2008 State Amateur Baseball Championships. With these facilities and events, we should be in line for a higher commission and/or higher annual payments. REQUESTED ACTION If,City Council concurs, move authorize one-year contract extensions with 'Midwest Coca-Cola and Midwest Vending for providing beverage and snack vending. CITY OF SHAKOPEE MEMORANDUM To: Mayor and City Council Mark McNeill, City Administrator From: Mark Themig, Facilities and Recreation Director Date: 12 September, 2002 Subject: Vending Services for Parks and Recreation and City Hall Facilities INTRODUCTION City Council. is asked to authorize a new agreement for vending services at Parks and Recreation and City Hall facilities. BACKGROUND AND DISCUSSION Current Vending Agreements In 1995, the City entered into agreements with Midwest Coca-Cola Bottling Company and Midwest Vending for beverage and snack vending at the Community Center and Aquatic Park. The agreement with Coca-Cola ran for six years, and the agreement with Midwest Vending ran for seven years. City Council extended the Coca-Cola agreement so both. agreements expired at the same time, September 30,2002. There is a separate agreement with Pepsi Cola for Joe Schleper Stadium. The initial agreement with Coca-Cola specified a total cash payment to the City of $20,000, paid out in annual installments of $3,333.33, plus a commission rate of 25% on each item sold. The agreement with Midwest Vending specified a one-time cash payment of $7,000, and 30% commission on most items. Total vending revenue for the most recent calendar year (1991) was: Item Commission Amount Amount Coca-Cola Annual Payment n/a $3,333.33 Coca-Cola Commission Payments 25% $4,780.77 Midwest Vending Commission Payments 30% $7,572.79 Total $15,686.89 Proposals We issued Requesffor Proposals (RFP) to 14 vending service providers. The RFP requested that proposals provide the following information: 1. Percentage Commission amounts for a variety of products. 2. Wholesale beverage costs for the Ice Arenaand Aquatic Park concession stand. 3. Annual product donation for recreation programs and special events. 4. Pre-printed banners for programs and special events. 5. An annual financial payment amount in addition to commissions. The proposal specified that the new agreement would be for three years, with an option to renew for two additional years. Service would be provided at the Community Center, Ice Arena, Aquatic Park, and City Hall, and an option of providing machines at other parks, should such service be desired. Five companies submitted proposals: Midwest Coca-Cola, Midwest Vending, Pepsi Bottling Group, Sports blaster Vending, and Theisen Vending (see Attachment A). Of these five, Sportsblaster Vending only provides "gum ball machine" type vending, not beverage and snack vending which we are seeking, so we were not able to consider them for this service. In addition, Theisen Vending bid an annual commission payment for snack instead of the percentage commission that was requested. This reduced the comparison to Midwest Coca-Cola, Midwest Vending, and Pepsi Bottling Group. RECOMMENDATION Based on the proposals, potential for maximum total revenue (commission plus annual financial payment), would be achieved by entering into new agreements with our current providers, Midwest Coca-Cola for beverage service and Midwest Vending for snack. Midwest Coca-Cola will provide an annual payment of $3,400, and increase commissions from 25% to 35%. Midwest Vending will provide an annual payment of $500, and continue with their current commission amounts of 30% on most items. Overall, we have been very satisfied with both Midwest Vending and Midwest Coca-Cola , over the pastfew years. They have kept machines stocked and maintained very well, and ,have accommodated changes that we have requested, such as relocating and adding/removing machines. REQUESTED ACTION If Council concurs, move to authorize new three-year agreements with Midwest Coca- Cola Bottling Company for beverage vending service, and Midwest Vending for snack vending service. Mark Themig Facilities and Recreation Director CITY OF SHAKOPEE PARKS AND RECREATION DEPARTMENT VENDING SERVICES PROPOSAL TABULATION Section 1: Vending Commission and Costs Vendor: Coca-Cola Vendor: Midwest Vending Vendor: Midwest Vending Vendor: Pepsi Vendor: Sportsblaster Vendor: Theisen Vending (Beverage Only) (Beverage and Snack) (Snack Only) (Beverage Only) (Gumball Machines) (Beverage and Snack) Vending Commissi Vending Commissi Vending Commissi Vending Commissi Vending Commissi Vending Commission Vending on Price on Price on Price on Price on Price Price Bottle soda 35% $1 30% $1.25 . % $ 30% $1.25 % $ . ~0/35% $1/1.25 , Can soda 35% $.65 30% $.75 % $ 10% $.65 % $ 30% $1 ,. , - , . / Juice 35% $1 25% $1.25 % $ 15% $1.50 % $ 25% $1.25 . Snacks - Small % $ 30% $.75 30% $.75 % $ % $ % $.75 $5,500 annual Snacks - Large % $ 30% $1 30% $1 % $ % $ ---% $1.50 Candy % $ 30% $.75 30% $.75 % $ 40% $.25-.75 ---% $.75 Coffee/Hot Chocolate % $ 30% $.50 30% $.50 % $ % $ % $.50 _ $500 annual Milk 35% $1 10% $1-1.25 10% $1-1.25 % $ % $ % $ Cold Sandwiches % $ 10% $1.85 10% $1.85 % $ % $ % $ Other % $ % $ % $ % $ 40% $.25-.75 25% $1.25 . IT ovs) . PowerAde Section 2: Retail Product Costs Retail Price/Unit Unit Price/Unit Unit Quantity Price/Unit Unit Quantity Price/Unit Unit Price/Unit Unit Price/Unit Unit Quantity Quantitv Quantitv . Quantity Bottled soda $15.75 24 case $13.50 24 case $ $15.75 24 case $ , $14.40 24 case $13.90 Can soda $7.25 24 case $6.10 24 case $ $7.95 24 case $ $7.20 24 case $6.55 Section 3: Product Donation, Annual Financial Payment, and Other Items Item Yes/No Details Yes/No Details Yes/No Details YeslNo Details Yes/No Details YeslNo Details Product Donation Yes Coke Yes Coke or Pepsi No Yes Pepsi No No response (100 Cases) oroducts products oroducts Pre-Printed Banners Yes As needed Yes 6/year No Yes 6/year No No response. Annual Financial Yes $3,400 + Yes $2.500 Yes $500 No No No response Payment $100 in I merchandise