HomeMy WebLinkAbout4.E.1. Vending Services for Parks and recreation Facilities y�.i,
CITY OF SHAKOPEE
MEMO�N�UM
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To: Mayor and City Council �,
Mark McNeill, City Administrator � � �� � `
From: Jamie Polley, Parks, Recreation & Natural Resources Director
Date: February 21, 2012
Subject Vending Services for Parks and Recreation Facilities
INTRO�T�pN
City Council is asked to authorize a new agreement for vending services at the City's
Parks and Recreation facilities.
BACKGROUND AND DISCUSSION
Current Vending Agreements
In 2008, the City entered into agreements with Coca-Cola Enterprises, Inc. 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 one additional year.
The agreement with Coca-Cola specified a cash payment to the City of $3,500 annually
plus a commission rate of 33% on bottled soda and water. The agreement with Midwest
Vending specified a 25% commission on most items. The commission rate was lowered
to 20% on most items over the course of the agreement. Total vending revenue for the
most recent calendar year (2011) was $8,539.62.
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, Tahpah
Park, 17` 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 two years, with an option to
renew for one additional year. Service would be provided at the Community Center, Ice
Arena, Aquatic Park, 17` Avenue Sports Complex, Tahpah Park, Schleper Stadium, and
Huber Park, and an option of providing machines at other parks, should such service be
desired.
Four companies submitted proposals: Coca-Cola Refreshments USA, Inc, Midwest
Vending, Royal Vending, and Theisen Vending Company (see Attachment A). Coca
Cola provides only drink vending and Theisen Vending provides only snack vending. It
was also noted that Midwest Vending does not provide bottled soda for vending.
RECOMMENDATION
Based on the proposals, the company that appears to provide the best overall service,
while providing a consistent revenue source (commission plus annual financial
payment), would be Royal Vending. Royal Vending will provide an annual payment of
$500 or the option to custom wrap the machines (Attachment B provides an example)
and provide a commission rate of 20% on drink s and 25% on snacks.
In addition, Royal Vending will provide wholesale beverages for resale in the City's
concession stands. They will also donate 100 cases of canned soda and 2 banners to
the Parks and Recreation DepartmenYs special events.
RELATIONSHIP TO VISION
F. Housekeeping Item
REQUESTED ACTION
If Council concurs, move to authorize a two-year agreement with Royal Vending for
beverage and snack vending services.
�
'-IG�.i,vi� i����
Jari�ie Foiley o
Parks, Recreation & Natural Resources
Director
CITY OF SHAKOPEE PARKS AND RECREATION DEPARTMENT ATTACHMENT A
VENDING SERVICES PROPOSAL TABULATION - 2012
Section 1: Vendin Commission and Costs
Vendor: Coca-Cola Vendor: Midwest Vending Vendor: Royal Vending Vendor: Theisen Vending Vendor: Vendor:
Be verage O nly) Bevera e and Snac Bevera e and Snack Snack Only)
Vending Commissi Vending Commissi Vending Commissi Vending Commissi Vending Commiss Vending Commission Vending
on Price on Price on Price on Price ion Price
Bottlesoda 25-21% $1.50 %$ 20 o� o $� 50 0 o Price
/o $ /o $ % $
% $
Can Soda % $ 30.10% $1.00 20% $1.00 % $ % $ % $
o� $
JUice 2% $ 30.10% $1.50 20% $2.50 °/ $ % $ % $
Snacks – Small % $ 22.60% $1.00 25% $1.OD 25% $1.00 �
/o $ % $
Snacks–Lar9e % $ 22.60% $1.25 25% $1.25 25% $1.25 % $ %
$
CandY % $ 20.10% $1.00-$2.00 25% $125 25% $1.25 % $ % $
Coffee/Hot Chocolate % $ % $ % $ % $ % $
Milk % $ . .. ° /a $ % $
0% $1.00-$1.50 % $ % $ % $
Cold Sandwich85 % $ % $ 0% $2.00-$3.00 % $ % $ %
$
Other -SportsDrink 25-21% $1.50 20% $1.75 ��o $ o�
Energy Drink 25-21% $2.00 % $ 20% $ % $
Vitamin Water 25-21% $2.00 0� $ $3.00
M'Intsr 25-21% $1.50 30.10% $1.25 (16oz) 20% �1.25 �
— 25% $0J5
S ection 2: Retail Product Costs
Retail Price/Unit Unit PricelUnit Unit Quantity Price/Unit Unit Quantity PricelUnit Unit PricelUnit Unit PricelUnit Unit
Qua� Quantit
Bottled soda 322.32 24 – 20oz $22.00 24- 20oz �luantit Quantit
Bottled Sports $22.54 24- 20oz $25.00 24- 20oz
Bottled water $1 2.48 24 – 20oz $ 10.75 24- 1 6oz �18 24- 20oz
Can soda $8.64 24- 12oz $10.75 24- 12oz $12.00 24- 12oz
Section 3: Product Donation, Annual Financial Pa ment, and Ot Item
Item Yes/No Details YeslNo Details YeslNo Details Yes/No Details YeslNo Details Yes/No Details
Product Donation No Yes Water only- one Yes Cans only
100 Cases� delive�
Pre-Printed Banners Yes 5 Y 4 Yes 2
Annual Financial Yes $1000/year Yes $300/year Yes $500/year or
Pa ment
custom fronts
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