HomeMy WebLinkAbout5.C.2. Contract Extensions for Beverage and Snack Vending
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CITY OF SHAKOPEE C()r~lsr'+il
MEMORANDUM
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To: Mayor and City Council
Mark McNeill, City Administrator
From: Mark Themig, Parks, Recreation, and Facilities Director
Meeting Date: January 2, 2007
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 oneyear.
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 annual extensions at the
discretion of the City.
Our current agreement with Midwest Coca-Cola provides an annual payment of $3,400,
and 35% commissions. Midwest Vending provides an annual payment of $500, and 30%
commission on most items.
Both vendors have provided good service, and I am recommending that we extend the
contract for an additional year. In 2007, we will want to consider requesting new
proposals that reflect the new vending services in facilities like Huber Park. In addition,
we will wantto consider beverage service for the 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.
RELATIONSHIP TO VISION
F. Housekeeping Item
REQUESTED ACTION
If City Council concurs, move to authorize one-year contract extensions with Midwest
Coca-Cola and Midwest Vending for providing beverage and snack vending.