Loading...
HomeMy WebLinkAboutAGENDA REPORT 2005 1005 CC REG ITEM 10CITEM 10 •G' CITY OF MOORPARK, CALIFORNIA City Council Meeting Of ACTION: Qra P,..,.. —A9 MOORPARK CITY COUNCIL BY: � Q— AGENDA REPORT TO: The Honorable City Council FROM: Mary Lindley, Director Parks, Recreation and Community Services PREPARED BY: Bob Stallings, Recreation Manager DATE: September 21, 2005 (CC meeting of October 5, 2005) SUBJECT: Consider Award of Agreement for Food and Beverage Vending Machine Services SUMMARY The City Council is being asked to award an 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 (CC) . Staff has completed the formal bid process including reference checks and is recommending that the City enter into an Agreement with Advantage Vending Solutions to provide vending services. Vending services would include placement of two beverage and two food vending machines at each site, and maintenance of the machines and their contents at no cost to the City. For the right to operate on City property, Advantage Vending Solutions will make monthly payments to the City of 26 percent of gross receipts for beverages and 26 percent of gross receipts for food items. DISCUSSION The City's current vending machine contractor is Glendale Amusements. The initial agreement was for a one year term expiring on August 31, 2005 and contained three one year extensions at the City's discretion. Under the agreement Glendale Amusements pays the City 380 of their gross revenue for beverages and 25% of their gross revenue for food items. Based on the aforementioned percentages the annual revenue to the City is approximately $7,100.00. During the initial year Glendale Amusements was not able to meet the terms and conditions provided for in the agreement. Areas of key deficiency included, but were not limited to, timely response to service 0 0®�91 Honorable City Council September 21, 2005 Page 2 requests, commission payments, inventory control and a suitable restocking schedule. After numerous verbal and written communications outlining the deficiencies in the performance of Glendale Amusements and requests for corrections, it was determined that they were not able to meet the terms and conditions set forth in the agreement. Therefore, staff is recommending that the provision providing for an extension of the agreement not be exercised by the City. Currently Glendale Amusements is operating under the "Holding Over" provision which is month to month. On August 16, 2005, 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. RFP's were sent to thirteen concession companies, six of the thirteen companies submitted sealed bids by the September 6, 2005 deadline. Glendale Amusements did not submit a bid. BID RESULTS 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. Commission payments ranged from 10%-260, with Advantage Vending Solutions offering the highest percentage payment to the City from gross receipts. Staff has verified references for Advantage Vending Solutions, and received favorable comments on their professionalism, follow through, product selection and turnover, and overall customer service. If approved, Advantage Vending Solutions will place a beverage and food machine at each location. Drink selections will include water, 0004292 Drink -A tai 0/0 �. Drinks Range 26% $0.75 $1.50 25% $0.65 $2.00 20% 1 u7"& $0.75 $1.00 15% $ 0.75 $ 1.50 HNNINKM 13% $0.60 $2.00 1 10% $1.25 $2.75 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. Commission payments ranged from 10%-260, with Advantage Vending Solutions offering the highest percentage payment to the City from gross receipts. Staff has verified references for Advantage Vending Solutions, and received favorable comments on their professionalism, follow through, product selection and turnover, and overall customer service. If approved, Advantage Vending Solutions will place a beverage and food machine at each location. Drink selections will include water, 0004292 Honorable City Council September 21, 2005 Page 3 fruit juice, sports drinks and soda. Food selections will include cookies, candy, chips, granola bars, fruit mix, trail mix, and nuts. Advantage Vending Solutions will continually offer healthy drink and food options commensurate with the nutritional values as outlined in CA SB19 —Pupil Nutrition Act. All food and beverage products will receive prior approval by the City before placement in the machines, with the option to change or modify inventory at the pleasure of the City anytime throughout the duration of the agreement. Other terms of the Agreement include stock and restock 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. Advantage Vending Solutions has verbally indicated acceptance of the terms of the draft City Agreement. STAFF RECOMMENDATION Award an agreement to Advantage Vending Solutions for food and beverage vending machine services and authorize the City Manager to sign the agreement on behalf of the City subject to final language approval of City Attorney and City Manager. Attachment: A - Contract Agreement (300393 CONTRACT.AGREEMENT THIS AGREEMENT, made and entered into this 1St day of November 2005, between the City of Moorpark, a municipal corporation, hereinafter referred to as "CITY" and Advantage Vending Solutions, 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 (Exhibit "A" Scope of Services) attached hereto and made part of this Agreement. 2. TERMS OF AGREEMENT: This Agreement shall expire on October 31, 2005 and may be renewed by mutual agreement of both parties for three (3) additional one 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 and Contractor. Contractor shall present documentation satisfactory to City 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 0003V 94 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 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 the agreed upon 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 2 0 0®�3� 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. 8. 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 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 5265 Newcastle Ave., Suite 3, Encino, CA 91316, and until different addresses may 3 000396 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. INSURANCE: Contractor shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit B attached to and part of this agreement. 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: Contractor shall 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 sufficient time to comply with applicable law, but in no event less than thirty (30) 4 U0®�97 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 5 00098 interpreted against either party on the ground that the party prepared the Agreement or caused it to be prepared. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF MOORPARK By City Manager Date CONTRACTOR By 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 Agent /Authorized Signature: day of Contractor 2005 6 0 0099 EXHIBIT A SCOPE OF WORK 1. Contractor will provide all beverage and snack vending machines at no cost to the City. The contractor will provide high quality, fresh merchandise. All food products will be removed from vending machines on the date that their freshness dating expires. 2. Contractor will provide only beverage and food items approved by the City for placement in vending machines 3. Automatic vending machines shall be new and /or be of good quality. All vending machines shall be attractive in appearance using the latest designs in the marketplace and shall reasonably match each other in color and style. Vending machines must accept any combination of nickels, dimes and quarters. Vending machines will also be required to accept at least $1.00 bills and provide change. $5.00 bill is optional. 4. Contractor will maintain ample supply of beverage, snack and food items in all participating vending machines at all times. 5. Contractor will provide all stocking and restocking of beverages and food snacks in all vending machines at least weekly. Replenishment lists must be left with on -site staff at the time of restocking. 6. Contractor will collect all money deposited in all vending machines and will be solely responsible for accountability. Comprehensive, detailed report information must be provided with commission checks. 7. Contractor will provide a change fund of $20.00 to be used to reimburse customers requesting refunds for machine malfunctions and /or non - dispense reasons. The fund will be maintained by City employees at City Hall and Arroyo Vista Recreation Center. This fund is to be replenished by the contractor on a monthly basis, or when the change fund is depleted to a minimum of $10.00. City staff will require each user requesting a refund to complete a refund request form. This form will request the following information: type of machine, location, product, dollar amount, date of transaction and signature. This information will be held at each location and given to the contractor when 7 000400 the funds are replenished. City staff will reconcile these funds on a monthly basis. Vendor will place a notice on each machine advising the user to go to the receptionist desk (City Hall) or customer walk -up counter (AVRC). 8. Contractor will provide all beverages, snacks, and foods at a cost to consumers at a fair market value. There shall be uniform product pricing across all machines city wide. In no case shall the Retail price of a product in a machine exceed any pre- stamped or pre - priced Manufacture's Suggested Retail Price. 9. For the "Recreation Center" and "Community Center" and any future locations, contractor will pay the agreed upon percent of monthly gross receipts to the City within fifteen (15) days of the end of the prior month that the vending machines are in service. 10. Contractor will provide a statement of vending machine receipts on which the percentage payment noted in #9 above is based. 11. Contractor will check operation and functioning of vending machines not less than once weekly. 12. Contractor will service and /or repair vending machines within twenty -four hours of request for service. Equipment that cannot be returned to full service within forty -eight (48) hours of notification of needed repair shall be replaced with comparable equipment of like quality until the original equipment is returned to service or permanently replaced at no cost to City. 13. Contractor will have a service or contact phone number that denotes an immediate response when activated. 14. This agreement may be terminated with or without cause by either party at any 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 agreed upon percent of the gross receipts to the City, determined by the proceeds found in the machine within fifteen 15 days after termination. g 000401 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. 15. The contract may be renewed on an annual basis, by mutual agreement, for three additional one -year terms. 16. The consumption of alcohol or drugs or tobacco products or being under the influence of alcohol or drugs, or possession of firearms by the selected vendor, or agents thereof while carrying out duties in accord with this contract is strictly prohibited. 20. Contractor will be required to sign an agreement with the City. Sample of the City's typical service agreement is attached to this proposal. 9 000402 Exhibit B SUPPLEMENTAL GENERAL CONDITIONS 1. 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 insured covering this Agreement, to Contractor insured must be City. the insured or nan the services to b4 whether liability or City. Proof provided in a f ed an additional performed under is attributable of additionally -mat approved by 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: 10 000403 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. 11 000404