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HomeMy WebLinkAboutAGENDA REPORT 2004 0707 CC REG ITEM 10CMOORPARK CITY COUNCIL AGENDA REPORT 1!. 7- moo Al- LtQ.��xnr A� A TO: The Honorable City Council FROM: John Hartnett, Recreation Services Manager DATE: June 25, 2004 (CC meeting of July 7, 2004) SUBJECT: Consider Award of Agreement for Food and Beverage Vending Machine Services SUMMARY The City Council is being asked to award a contract Agreement for food and beverage vending machine services at two locations: inside the lobby of the Arroyo Vista Recreation Center (AVRC) and the lobby of the Community Center. Upon conclusion of a formal bid process, staff is recommending that the City enter into an Agreement with Glendale Amusements to provide vending services including providing and maintaining the machines and their contents at no cost to the City and monthly payments to the City of 38 percent of gross receipts for beverages and 25 percent of gross receipts for food. nISCUSSION The City's current vending machine contractor is Take Five, which is being sold and now operates under the name Reliable Refreshments. They pay the City 20% of their gross revenue. The revenue to the City for this is approximately $3,000.00 annually. On April 13, staff mailed out a Request For Proposals (RFP) for a contract vendor to supply vending machines in the lobbies of AVRC and the Community Center. Nine Concession Companies were solicited and Proposals were due May 7. The City received three bids from the following companies: Punky's Vending, Reliable Refreshments, and Glendale Amusements. Each bidder submitted a proposal which listed price ranges for food and beverage items and the percentage of gross receipts they would agree to pay the City from the sale of products. All price ranges submitted were comparable, within a range of $.75 (seventy five cents) to $1.50 (one dollar and fifty cents). Glendale Amusements, however, offered the highest 000361 Honorable City Council July 7, 2004 Page 2 percentage of payment to the City from gross receipts (38% - beverage, 25% - food), as opposed to the other two vendors (Reliable Refreshments - 20 %, Punky's Vending - 10 %). Staff has verified references for Glendale Amusements, and received very favorable comments on their professionalism, follow through, product selection & turnover, and overall customer service. If approved, Glendale Amusements will install a beverage and food machine at each location. Drink selections will include water, beverages and soda. Food selections will include cookies, candy, chips, and nuts. All products will be approved by the City, with the option to change or modify selections at the City's request, at any time. Other terms of the Agreement include; stocking and restocking product at least weekly, provide monthly accounting statements and payments to City, provide twenty -four hour turn around for service requests, and provide liability insurance and a current Moorpark business registration. The proposed Agreement will include a one -year term with the possibility of three additional one -year extensions at the discretion of the City, by mutual agreement. Glendale Amusements has indicated acceptance of the terms of the draft City Agreement. STAFF RECOMMENDATION Award an agreement to Glendale Amusements for food and beverage vending machine services and authorize the City Manager to sign the agreement on behalf of the City. Attachment: A - Contract Agreement 000 362 CONTRACT AGREEMENT THIS AGREEMENT, made and entered into this day of , 2004, between the City of Moorpark, a municipal corporation, hereinafter referred to as "CITY" and , hereinafter referred to as "CONTRACTOR ". WITNESSETH: WHEREAS, City wishes to enter into an Agreement with Contractor for the installation and service of a soft drink, and food, vending machines at various City owned premises. WHEREAS, City desires to retain Contractor for the performance of said services & contractor is qualified to provide services. NOW, THEREFORE, it is hereby agreed by and between the parties that: 1. SCOPE OF SERVICES: Contractor agrees to perform for, and furnish to City, the services described in the proposal attached hereto and incorporated as Exhibit "A" (Scope of Services). 2. TERMS OF AGREEMENT: This Agreement shall expire on , and may be renewed by mutual agreement of both parties for three (3) additional year terms. 3. TIME FOR PERFORMANCE: Contractor agrees that it shall diligently and responsibly pursue the performance of the services required of it by this Agreement and that said services shall commence immediately after the execution of this Agreement in accordance with Exhibit "A ". If a delay beyond the control of Contractor is encountered, a time extension may be mutually agreed upon in writing by the City Manager of City and Contractor. Contractor shall present documentation satisfactory to City Manager to substantiate any request for a time extension. 4. HOLDING OVER: It is further agreed that if Contractor retains use of City premises beyond the original term of this Contract or any extension thereof, without the express written consent of the City, Contract term shall automatically become month -to -month during such hold -over period. Contractor shall be subject to all of the terms, covenants and conditions of this Contract, including the obligation to pay City an additional 10% above any monthly fees agreed to in this Agreement. The agreed upon percentage of monthly gross receipts shall continue to be paid within fifteen (15) days of the end of prior month that the vending machines are in service as specified in Exhibit "A" of this Contract. 5. SUSPENSION, TERMINATION OR ABANDONMENT OF AGREEMENT: This agreement may be terminated with or without cause by either party at any 000363 time with no less than ten (10) days written notice of such termination to the other party. Upon receipt of said notice, Contractor shall cease services as of the date provided for in the notice. Contractor shall remove all beverage, snack and food vending machines from the City buildings on the date of termination. Contractor will pay the percent ( %) of the gross receipts to the City, determined by the proceeds found in the machine within fifteen (15) days after termination. If City suspends, terminates, or abandons a portion of this Agreement, such suspension, termination, or abandonment shall not make void or invalidate the remainder of this Agreement. 6. BREACH OF CONTRACT: If Contractor defaults in this Agreement, it shall have ten (10) days after service upon it of written notice of such default in which to cure the default by rendering a satisfactory performance. In the event that Contractor fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 7. BANKRUPTCY: City shall have the right, notwithstanding any other provisions of this Agreement, to terminate this Agreement, at its option and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement, immediately upon service of written notice of termination on Contractor, if any of the following should occur to Contractor: a. Be adjudged a bankrupt; b. Become insolvent or have a receiver of its assets or property appointed because of insolvency; c. Make a general assignment for the benefit of creditors; d. Default in the performance of any obligation or payment of any indebtedness under this Agreement; e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or f. Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs. S. INDEPENDENT CONTRACTOR: Contractor is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, servants or agents shall have control over the conduct of Contractor or any of Contractor's officers, employees, servants and agents, except as herein set forth. Contractor shall not at any time or in any manner represent that it or any of its officers, employees, servants, or agents are in any manner officers, employees, servants, or agents of City. 9. LEGAL RESPONSIBILITIES: Contractor shall keep itself informed of all state and federal laws and regulations which in any manner affect those employed by it 2 000364 or in any way affect the performance of its services pursuant to this Agreement. Contractor shall at all times observe and comply with all such laws, ordinances and regulations. The City and its officers, employees, servants and agents shall not be liable at law or in equity occasioned by failure of Contractor to comply with this section. 10. NOTICE: Whenever it shall be necessary for either party to serve notice on the other respecting this Agreement, such notice shall be served by certified mail, postage prepaid, return receipt requested, addressed to City of Moorpark, c/o City Manager at 799 Moorpark Avenue, Moorpark, California, 93021, and to Contractor at , and until different addresses may be furnished in writing by either party to the other. Notice shall be deemed to have been served seventy -two (72) hours after the same has been deposited in the United States Postal Service. This shall be a valid and sufficient service of notice for all purposes. 11. ASSIGNMENT: Contractor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder. 12. LIABILITY INSURANCE /CITY BUSINESS REGISTRATION PERMIT: Contractor shall secure from a good and responsible company or companies authorized to do insurance business in the State of California, pay for, and maintain in full force and effect for the duration of this Agreement, a policy of comprehensive liability insurance, including automobile liability and property damage. Contractor shall secure a business registration permit from the City, pay for, and maintain in full force and effect for the duration of this Agreement. Contractor shall furnish a City Business Registration Permit and permit number, and furnish a Certificate of Liability Insurance to the City Manager of City before execution of this Agreement by the City. Notwithstanding any inconsistent statement in the policy or any subsequent endorsement attached thereto, the protection offered by the policy shall: a. Include City as the insured or named an additional insured covering the services to be performed under this Agreement, whether liability is attributable to Contractor or City. Proof of additionally insured must be provided in a format approved by City. b. Insure City and its officers, employees, servants and agents while acting within the scope of their duties under this Agreement against all claims arising out of, or in connection with the Agreement. c. Consistent with other provisions stated in the first paragraph of Section 12, Contractor shall provide a broad form of automobile liability coverage with limits as set forth below, which applies to both owned/leased and non - owned automobiles used by Contractor. If Contractor chooses not to use business owned or leased automobiles in the performance of this Agreement, Contractor will require from its employees a self certification of automobile insurance coverage. d. Provide the following minimum limits: 3 000365 Bodily Injury - $2,000,000 each person $2,000,000 each occurrence $2,000,000 aggregated products & completed operations Property Damage - $2,000,000 each occurrence $2,000,000 aggregate A combined single limit policy with aggregate limits in the amount of $2,000,000 will be considered equivalent to the required minimum limits. Contractor may file insurance acceptable to City covering more than one project. e. Bear an endorsement or shall have attached a rider whereby it is provided that, in the event of amendment or cancellation of such policy for any reason whatsoever, City shall be notified by registered mail, postage prepaid, return receipt requested, not less than thirty (30) days before the amendment or cancellation is effective. 13. HOLD HARMLESS: Contractor shall hold harmless, indemnify, and defend City and all of its officers, employees, servants and agents from any claim, demand, damage, liability, loss, cost, or expense for any damage whatsoever, including but not limited to death or injury to any person and injury to any property, resulting from misconduct, negligent acts, or errors or omissions of Contractor or any of its officers, employees, servants or agents in the performance of this Agreement, except such damage as is caused by sole negligence of City or any of its officers, employees, servants, or agents. 14. WORKERS' COMPENSATION INSURANCE: Before execution of this Agreement by City, Contractor shall file with the City Manager of City the following signed certification: "I am aware of, and will comply with Section 3700 of the Labor Code, requiring every employer to be insured against liability of Workers' Compensation or to undertake self- insurance before commencing any of the work." Contractor shall also comply with Section 3800 of the Labor Code by securing, paying for, and maintaining in full force and effect for the duration of this Agreement complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City Manager of City before execution of this Agreement by City. The City and its officers, employees, servants and agents shall not be responsible for any claims in law or equity occasioned by failure of the Consultant to comply with this section. Every compensation insurance policy shall bear an endorsement or shall have attached a rider whereby it is provided that, in the event of amendment or cancellation of such policy for any reason whatsoever, City shall be notified by registered mail, postage prepaid, return receipt requested, giving Contractor a 4 000366 sufficient time to comply with applicable law, but in no event less than thirty (30) days before the amendment or cancellation is effective. 15. ATTORNEY'S FEES: If any action at law or suit in equity, including an action for declaratory relief, is brought to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, court costs, and necessary disbursements, in addition to any other relief to which it may be entitled. 16. ENTIRE AGREEMENT: This Agreement and any documents or instrument attached hereto or referred to herein integrate all terms and conditions mentioned herein or incidental hereto and supersede all negotiations and prior writing with respect to the subject matter hereof. In the event of conflict between the terms, conditions or provisions of this Agreement and any such document or instrument, the terms and conditions of this Agreement shall prevail. 17. EFFECTIVE DATE AND NUMBER OF COPIES: This Agreement is made in two (2) duplicate originals and shall be effective from and after the date it is signed by the representatives of City. 18. GOVERNING LAW: This Agreement shall be governed by, and constructed in accordance with, the laws of the State of California. 19. VENUE: This Agreement is made, entered into, executed and is to be performed in Moorpark, Ventura County, California, and any action filed in any court for interpretation, enforcement or breach otherwise of the terms, covenants and conditions of this Agreement shall be filed in the applicable court in Ventura County, California. 20. CITY'S AGENT: The Moorpark City Manager or his designated representative shall have the right to review, coordinate and approve all work to be performed by Contractor pursuant to the terms of this Agreement and shall be the City's agent with respect to review, coordination and approval of the services to be performed by the Contractor. 21. INTERPRETATION OF AGREEMENT: Should interpretation of this Agreement, or any portion thereof, be necessary, it is deemed that this Agreement was prepared jointly and equally, by the parties and shall not be interpreted against either party on the ground that the party prepared the Agreement or caused it to be prepared. 5 X00367 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF MOORPARK CONTRACTOR LIZ City Manager Date L-B Title Date I, CONTRACTOR, declare under penalty of perjury under the laws of the State of California, that the above representations are true and correct. Executed this day of , 2004 Agent/Authorized Signature: Contractor G9 tF . EXHIBIT "A" SCOPE OF WORK The following scope of work shall apply to inventory of machines located at the attached listing. The listing shall contain the number of machines at each location, and a brief description of each (e.g., sodas only, sodas and snacks, etc.). This listing will be revised by Contractor within 30 days of the date that new machines are added or removed. 1. Contractor will provide only beverages, snacks and food approved by the City for placement in vending machines. At no time shall tobacco products be offered for sale at vending machines located on City property. 2. Contractor will provide all stocking and restocking of beverages and food snacks in all vending machines weekly. Contractor will assure the quality and freshness of the goods being sold by maintaining a first - in/first -out inventory, control. No food will be sold from these machines with expired quality assurance dates. 3. Contractor will collect all moneys deposited in all vending machines and will be solely responsible for accountability. 4. Contractor will pay percent ( %) of monthly gross receipts to the City within fifteen (15) days of the end of prior month that the vending machines are in service. 5. Contractor will provide all beverages, snacks and foods at a cost to consumers at a fair market value. 6. Contractor will provide a "certified" sales statement of vending machine receipts in which the percent ( %) payment is based on. 7. Contractor will maintain ample supply of beverage, snack and food items in all participating vending machines at all times. 8. Contractor will check operation and functioning of vending machines not less than once weekly. 9. Contractor will service and/or repair vending machines within twenty -four (24) hours of request for service. 10. Contractor will have a service or contact phone number that denotes an immediate response when activated. 11. Contractor will provide beverage, snack and food vending machines at all future City locations as requested by the City. 7 000369