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Home My WebLink About5.A.1. Awarding Vending Services for Parks and Recreation and City Hall Facilities $, fJ. ) # CITY OF SHAKOPEE MEMORANDUM C.'OIUiS.pm. ""l!111 , 'f~~ ..~ ~.' . ~(. ~1 .: 'ff ,;ti~d To: Mayor and City Council Mark McNeill, City Administrator From: Jamie Polley, Parks, Recreation & Natural Resources Director Date: March 5, 2008 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 2002, the City entered into agreements with Midwest Coca-Cola Bottling Company and Midwest Vending for beverage and snack vending at the Community Center, City Hall, Ice Arena and Aquatic Park. The agreement with Coca-Cola and Midwest Vending ran for three years. City Council extended both vending agreements for two additional one-year periods. There was a separate agreement with Pepsi Cola for Joe Schleper Stadium which has now expired. The agreement with Coca-Cola specified a cash payment to the City of $3,400 annually plus a commission rate of 35% on each item sold. The agreement with Midwest Vending specified a cash payment of $500 annually, and 30% commission on most items. Total vendina revenue for the most recent calendar .'ear (2007) was: Item Commission Amount Amount Coca-Cola Annual Payment nla $3,400 Coca-Cola Commission Payments 35% $9,095.80 Midwest VendinQ Commission Payments 30% $5,181.00 Total $17,676.80 Proposals We issued Request for Proposals (RFP) to 9 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 concession stands at the Aquatic Park, Ice Arena, Tahpah Park, 17th Avenue Sports Complex, & Schleper Stadium. 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, 17th Avenue sports Complex, Tahpah Park, Schleper Stadium, City Hall and Huber Park, 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, Royal Vending, and Superior Vending (see Attachment A). Of the five, Superior Vending provides commission rates that are Significantly lower then Royal Vending or Midwest Vending. 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 $3,500, and provide a commission rate of 33%. Midwest Vending will provide commission rates of 25% on most items. Overall, we have been very satisfied with both Midwest Vending and Midwest Coca-Cola over the past few years. They have kept machines stocked and maintained very well, and have accommodated changes that we have requested, such as relocating and addinglremoving 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. ~~ Parks, Recreation & Natural Resources Director CITY OF SHAKOPEE PARKS AND RECREATION DEPARTMENT ATTACHMENT A VENDING SERVICES PROPOSAL TABULATION Section 1: Vendin Commission and Costs Vendor: Coca-Cola Vendor: Midwest Vending Vendor: Royal Vending Vendor: Royal Vending Vendor: Pepsi Vendor: Superior Vending (Beverage Onl) (Beverage and Snack) (Snack Onl) (Beverage and Snack) (Beverage Onl) (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 33% $1.25 15% $1.25 % $ 25% $1.50 15% $1.25 16% $1.50 30% $1.50 Can soda 20% $.75 25% $.75 % $ 25% $.75 % $ % $ 40% $1 Juice 21% $1.25 20% $1.75 % $ 25% $1.50 % $ 16% $1.75 Snacks -Small % $ 25% $.75-1 25% $.65 25% $.65 % $ 16% $1 Snacks -Large % $ 25% $1-1.25 25% $1.25 25% $1.25 % $ 16% $1.25 Candy % $ 25% $1-1.25-1.75 25% $.75-1 25% $.75-1 % $ 16% $1 CoffeelHot Chocolate % $ 40% $.75-1 25% $.50-.75 25% $.50,75 % $ 16% $.75 Milk % $ 10% $1.50-1.75 10% $1.50 % $ % $ % $ Cold Sandwiches % $ 10% $1.75-2.25 10% $1.50-2.50 % $ % $ % $ Other 33% $1.25 30% $1.00 10% $1-2 % $ % $ 16% $1 15% $2.00 30% $1.25 30% $2.00 Section 2: Retail Product Costs Retail PricelUnit Unit PricelUnit Unit Quantity PricelUnit Unit Quantity Price/Unit Unit PricelUnit Unit PricelUnit Unit Quantit Quantit Quantit Quantit Bottled soda $.73 24unitsl $.69 24 unitslcase $18.00 24 case $18,00 24 case $4,21 24 case $.75 24 unit! case case Can soda $.34 24unitsl $.33 24 unitslcase $9.50 24 case $9.50 24 case $ $ case Section 3: Product Donation, Annual Financial Pa ment, and Other Items Item YeslNo Details YeslNo Details YeslNo Details YeslNo Details YeslNo Details YeslNo Details Product Donation Yes Coke Yes Coke & Pepsi No No No Yes (100 Cases) products products only if Bev & Snack Pre-Printed Banners Yes As needed No Yes 4lyear Yes 4lyear No Yes 4lyear Annual Financial Yes $3,500 inc Yes Only if awarded No No No No Payment $1,000 for Beverage & Stadium adv Snack Yes Schle er Adv