HomeMy WebLinkAbout5.o. Community Center Agreement with Midwest Vending, Inc. r �
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COTJNCIL MEETING DATE: December 21, 1993
AGENDA ITEM: Community Center Agreement AGENDA SECTION:
with Midwest Vending, Inc. Consent
PREPARED BY: Jim Topitzhofer, Community AGENDA NO.
Center Manager
ATTACHI+�ENTS: Vending Proposals AP OVED . , �
After numerous meetings with vendors, Midwest Vending, Inc. has presented
the most lucrative proposal for snack and coffee vending in the Community
Center. Midwest Vending offers a 22% commission (vend price of $ . 60 candy,
$ . 50 chips, and $ .50 coffee) for full vend services, the highest commission
offered in the attached proposals . Midwest Vending currently services the
following sehools : Rosemount High School, St. Paul School District,
Farmington High School, Dakota Hi11s School, Washburn School and
Minneapolis Technical School . Because of their volume and association with
Rosemount High School, Midwest is offering the ' school rate' to the
Community Center. Rosemount High School has expressed a favorable
reference.
RECONaSENDED ACTION: Motion to approve the Midwest Vending' s proposal
for snack and coffee vending in the Community Center.
COtTNCIL ACTION.
�IDWEST VENDING, INC.
911t� GRAND AVE. SOUTH
RLQOMIIVGTDIV, MN. 55420
612-681-b337
FAX B81-6986
I N T R O D U C T I O N
T�IID�tJ�Si V�iVDIt��u, sI�IG. , is •che aldest establistaed venc3inc�
s�r-�ri.c:� r�fRIJ21 iY i n thA t:wi n ci ty me+i��� �r�c�. The Gom�a.ny
wa� for-rnet� in �Zc�or7lin,�'�un , hti��ra��ota, in 19�5 bY t�lr. H�rr-y
3o�in:ori � u�t,� z� �#::i 3 :l t�cta.��� ��ri th th� r_.Urn�any. i�IP �rc� �
'F c"li)1'1 .t}/ r,��vri��c� ar�c1 n��r-��.�d �ompan y emphasi�i ng �7�.►ai i ty
�Fsrvi r� r���.tl.�i nc� f rz �s�.t�=_,tant i��1 qfi'o���th thrUzic►t� �he ve�ars.
t7i�r !-i�.�rltsuar��l-er-� ar�e t�t 411i; Cr�,nd r�ver,ue in E�ioc�minotvn.
TYiis 1.ar,tinr� incli�ci�� os.�r a-Ffire, =er-••rice and r^ep�a.ir
d��ar-�_,11�n� , ��.ncl a fui .l y s�t�ocl•::e�f i��r-��hause, ld?e have
a�c:;i 1 z ar-�y c•�ar�chr��s�pc� z n St_ Faul s La�evi 21 e and Chaska to
LF��L-t�r- ��r•ve ti-f�se ar�a5.
Ciur- r�f f i�� i� �q�ai.�<�Ad �.vi j:f-r �t cpmput�r- tc� i�sur� c1 i ent�
+ip-�c�-d��.e e1at� concerr�ir�q their �ceaunt. All ner-scannel
��rr_.� uni•�r�rm��d an�� ���rr•y p�q�r �rnit� r�n�3lnr thei.r vehicle� are
�q�aipp�d witl-i cell+il�r �han�s to ins�ire immedi�t� respvnse
t� � rnachi nEa rnal f uncti�n or c�.��tarrs�r ��rvi ce need. C►�.�r
stc�cl.: rc�om provic3es amplc� space •to st�re �,nc! en�orce
��ot�ficsn of pr-acizcct to zrisi�re proper tc.�.rnover and fr�shness
c�f pr-c.�duct�. tde carry ��31 of tl�e m�.jor n�rt;e brand pro�iu�.'t�
��.�r�h �� 1"1°�� 1��ar�;. HE�r=hey, �r-i to Lay, Ol d ��.itch, PeC�r�ans,
�'�psi , Cc�b;e a�c1 l�'ery Fi raf� ,.iui c�s.
* R R O F' O S A L �
COMMISSION
AREA 1 _LDWER LEVEL _ SKATE L.OHBY
y — 45 SELECT GLASS FRONT SNACK MACHINE 22 '!.
iti T TH DGLLAh. L�.�LL �iCCLF'�'OR
1 — RMI COFFEE — HOT HEVERAGE MACHINE 22 %
W i 3'N r��il_La�=� Es I�L ACCE�-T0�
* 1 — �1 & �5 DQLLAR BILL CHAIVGER
A�EA � _ AS5EMHLY HALL
:c -- 45 S�LECT GLASS FFtO1VT SNACK MACH I IVE 2.? %
W I TFi �OLLr�F'; �I LL ALCF�'TOT-�
AREA 3 = UF'PER LEVEL LOBRY
}. — 45 SELECT GLASSFROPIT SNACK MACH Il+tE 22 'l.
i�!I TH DC�L��1R �I LL r�CCEF'TGR
CAN E{EVERAGE
C�s.'',s�t��5T L'�'tali I tui� i�J.1 L� i-Us=+i'�1:t S1-i. r I LL �t�.ii} t'IF;I t�l7�s'Pv T'HE i�iL#hiFjFfi C�F
�EV�fi�tG� M�CHIt�fE� �1t�CO�I7I�1G TO 1'OU� 5T`Et�.'IFICr�TIGl�i�.
8 SE�ECT SODA MACHINES . 7�i l�r t�}I'� r'�'I CE 4C� 'f.
i.�l I"i i-i JJCJL.L_�j�'; F.t I L_L_ E=�Ci�Et-�Tf�i��;
8 5ELECT 3UICEIGATORADE MACHINES �i . s�t"� �%Ei"�II� F'FtIC;� 4O 'l.
l�i i i-i L�s�1LLH�i �I L!� �iGC�.�TC7F��
* O�T I ONAL — FUI',N I�}-!ED TO YOU �O� 'YGl1R rc�tvVEN I ENCE.
�iEFUlVDS: 1. t{idw�=_�r `��n;:lina �.�r�avi�i�� �� �l�r. c:;i_; c�=,�l�
�'_lf1C� 'i:O c�. C1E_'C:l C:ifl:=;tE::'C� Efi't[71 GJ1,�E`� '�:CJ t7c��'i(��.�-' !"E?si_!flCj�i
Tr_7t-' <_t fTi%_-1Lli:ti'1�=j (Ft71 �'t2ITC'r:it�fl r,r- nr�crc�_�r�t CJIS�.�cif:I:�—
'f cl C:;=3 J 1-1� 1�t'i i�i E:f i r>Ll t'"}�•'.� L f i ct� �l C3 C3 f'l E? .l�ct 4'E'
�_��rc pr���rni t��_�� w:s�l-.1��—n�.c�. 1-�i s r�r� nEr- RcFUC�dna
l-r•,���::� *ur��d� �r-=_� r�t��lPnz��hecJ on a t�lr�D�L-�r-'�SI�;�
2. !=�i�j;' �1T!-�FR ��,:stert� you mav d�=yiqnate.
INSURANCE. 'r�iacl-1:�riE�s; ar-F? i:h� c�ro�s�r�t�! Gf T•ii dav��t i�'fr��i n� ,
ar�a I"i i� �CIL.cLY }=ii=SE='Uf�1�i��LE. FCGn �NY!OF? f-�l..L
CL_t"�tIi�l:��__Ir��z�?s�-�nr_-e._r-�r-i_ificltc���av�-?i1�tE?1� u�on
1"EC1ltE?5'�.
FiEFERENCES: 1�1i ciw��t: 'Jencli n�, T�,r , crro�,ri dc_+, ��Eencii ng �servi c.��
�o a wicl� var�i�t�� a�f �c_ct>>tnt� ir� �h� TEN COUNTY
MET�O AREA, incs�.�cin�7 inc���striai �1an•ts,
c?S..t�'.C)fTtC:Jf11�.E? C�E?d�F�Y'a . �ducG�t i r�n��:� 1 fl�:�.l�tt�2 C3il�y
r�c���er�nnr�nt ar,��r>>-iPs and r�ffic� �om�l��::r_s.
F'i����.s� ���1 �fr�,-_� t,�� cc�ri�.ac:t �.n}� rr�f th� -�o3:tu��3.�g
r����r-�t�n;�e= r-n�,�r�i�t� �:.}-�e c}����tli�ty of t���r sE�rvice<
ACCOUNT CONTACT PERSDN RHONE #
FARMIIV6TON HIGH SCHOOL DR TDM fiOLLOFF 463—b5�1
DA}:OTA H I LL5 SCHOD�. J I M DELON6 6B3—b@Ot7
M I tVRiEAPOL.I S TECHN I CAI.. SH I RLEY PEDERSON 370-9414
COLLEGE
AF`F'LE VALLEY ICE �REt�lA GARY PIETRIG 431-8862
�iOSEMOUNT H I GH SCHt�CI� I}F2 R I CHARD DEWEY 423-754 f
ST RAUL SCHOOL DISTRICT GAROLYN BOLEN 29�—SlOf�
WASHBURN NI6H SCHOOL DR ANDRE LEWIS b27-2323
PRODUCTS
CAIVDY — Sh1ACKS: L_I ST Fa�i"Tfi�CHED {�UT NDT �.I h'1I"�ED TCi Tt-2C�E?
GANiVED BEVERAGES: L i�T �T'f�1CHE�i
��-�- Iii ciwEat lfencii ng owrss the canned b�`f�ra.y�
snact�i ne� �1 1 owi ng ��s to �r�vz de a�zr
��!�tc7m�r wi.th tt�e c��nr�Fd t��v���q� of
F?i� ,�r- i�t�r ct�oic�.
�+J t_� c�o r��L�7 p 3��c c� ro a c t-i i rr r.� 4V 3. 'F:Fi t h e
�AR6E BI��BDA�cD LCO�CE AND REPSI] FRDNTS.
TC Vending Commission Price Schedule
TC vending offers �everal commiss�on pnce schedules to choose
from. I
1. Snack Machine
4ption A
Assorted Chips 40C to SSC 10%
Candy Bars 55C 10%
Popcorn/Cooldes 55C 10%
Gum/Mints SSC 10%
Option B
Assorted Chips 45C to 60C 13%
Candy Bars 60C 13%
Popcorn/Cool�es 60C 13%
Gum/Mints 45C 13%
Option C
Assorted Chips SOC to 65G 16%
Candy Bars 65C 1 b%
Popcorn/Cooldes 65C 16%
GumlMints SOC 16%
2. Coffee Machine
Option A
Coffee 30C 10%
Hot Chocolate 30C 10%
Soup 30C 10%
Tea 30C 10%
Option B -
Coffee 35C 15%
Hot Chocolate 35C 15%
Soup 35C 15%
Tea 35C 15 3�
Option C
Coffee 40C 20�
Hot Chocolate 40G 20%
Soup 40C 20%
Tea 40C 20%
.
. . . Vendin� st��n c��w
13653 Elkwood Drive • Apple Valley, MN 55124 • 612-423-127$
Jim I_oF�itzoper '
Mana?er 'I
Rsmt Community Center !
Rsmt !�!n .
Dear Jim;
Please revi �w this tiid for placement of tnree (3 ) Glass
�ront candy ar� snack vendors , at the Community Center anc+
Ice Arena .
?1 �cerrent ,
:ti�e at O .T . S . vzndin� could daith a assioned delivnry date
?laca fer you ( ' ) Automatic aroc'vcts . mo�el ��1� snack anc�
can�y vendors . Thes2 are al � �lass front units with dollor
vslidators �uil + irto �"em.
"lacement could ta!;e nlace ir, (, 7 ) to ( .l0) days aft2r v��e
are are assiened a delivery date .
ServicE ;
These �nits v�roul � he filled and cleanec� ( ? ? tim?s �er
w��k to s��r�t , and more or lcss as the nee� arisQs de��ndino
on the aross sales of each unit pla�ed with vou .
A� 1 repair of thEse units woulC 5e done by .'erdors Supply
& Service , Sloominqton . They are Ey far the bi5gest repair
service in the tvrin cities and offer 24- hour a day service
with a�eekends aiso .
1�'it" thes� units �eing new at �lacement there should �e
litt? e or ro re,�airs needed for the first two y�ars or more .
.
. . .Venclln� steven Cahow
13653 Elkwaod Drive • Apple Valley, MN 55124 • 612-423-1278
Insur�nce ;
'rte �t 0 .� . � . are at this time rave a r300 ,000 . 00 Commercial
Lia�ility �olicy in force u�ith P,merican States Insurance .
'�vE v:culc� rorv�ard a co�y at your rF�uest .
CQntact or Lease Terms ;
I would asK at the time of alacemert for a ( 1 ) y�ar lease
or team of placement . �ut i ��voul � �e open �o all terms t!�at
�c� mieht wish to use .
Gricein� ar.d Commission ;
P.rea Aren� Fric?s-
Car.�y Ch; es Gum��l� nts ^ron
A. !! Arena- 60� 5C� 50� 64¢
Burns p.rena.- 60¢ 60¢ 50� 60�
Farmin�tan Arena- E0� 6Q¢ 50� 60�-cup
Nastina Arena- 55¢ 50¢ 50¢ 6�¢
P,t a sale price of ��� c'r.ips 55a can�y v��e would pey �t i0%
P.t a sale price of �0¢ chips 60� can�y �e would oay at 15%
A,t a s31e pric� of 50� chips 60¢ candy we H�ould pav at J. 7 . 5%
Thes� commission ra�es are �or the three units wc wauT �
place with you . We coulC use a different rate cn� onE or tw�o or
all units �lace� with yeu or price them all the�e t�e same if
you wish . k�e are o��n to any format y�ou mioht care to use .
.
. . .Ven 111� Steven Cahow
13653 Elkwood Drive • Apple Valley, MN 55124 • 612-423-1278
Jim us2in� the �eople count you gave me of i3OQO to 1. , 200
peoplP 5eing in th� arena or center �ae feel are gross sa1 �s
sl;oul � �e in the urea of $�50 .00 to $650 . 00 dollors from all
ur.its �+�e place ti�ith yau ppr week .
ihe units I am �laceing with yau have a sales record memory
This m�mory can no� bE chanyec: or mo� ; riE� ir any itiuy and a? 1
sa12s �re rec�rded . 4�'� would use this gross sal �s record to
bas� ell commissicn paym�nts . WQ w.eul � pay c�mmission �,�eekly
monthly , or here again any format you might wish to us� . k'e
at G . T. S . wish to meet your needs not ovrs , in this area .
Referenc�s ;
Dean Easton- Koch RefinEry- Rsmt h"n 438-?260
L�ale Snenc�r- Ap:;�le ';�' ley MaintEnancz Facility- A . �' . 4?1 -8853
Jac�c Ryar- Cenz-Ryan ►'�atin� ard Air Ccnditionin7- � 2?-? 1��!
In clos2in� let m2 szy . we at Q . T . S . vending i-,ave "never"
�Een aske� to leave any account we have entered into a workin�
ac�reement with and welcome you to our references .
If I can �� of any hzle or assistance in r�vie�ti�ins this
5ic' for placemert . �lease call me at 799-2688 or �23-127E.
Than!: You aoa � n for your time to revieH� this bic� .
Sincerely Yours :
�U�C�T—
Steven Carow Cwner of
O . T . S . ven�ino .
JoANN McGUIRE
Attorney 7101 York Avenue South
Edina, Minnesota 55435
(612) 921-3273
November 17, 1993
Jim Topitzhofer
2875 145th St. West
P.O. Box 510
Rosemount, MN 55068
Re: Proposal of varities 8pice of Life, Inc. for Coffee
Machine Vending Services at Rosemount Commuaity Center
Dear Mr. Topitzhofer:
Martha Jones (who is a principal of Varities Spice of
Life, Inc. ) asked me to submit a proposal to you for
locating Estro Beverage Dispensers (coffee machines) at the
Rosemount Community Center.
She said she has previously given you a picture of the
machine. It would be available immediately. It dispenses
e�resso, gourmet coffee, hot chocolate, and cappuccino.
The cappuccino costs $1. 00 per cup, and the other items cost
$.75 per cup.
Either she or someone else will service the machine on
a daily basis. Someone also will be available by pager if
necessary.
Ms, Jones has just recently started the business of
locating these raachines. Thus, she does not have very much
experience to draw on as far as knowing what amount of
profits she can expect. She is trying to get an adviser
from SCORE to help her in this business venture. Therefore,
at this time her proposal for payment to Rosemount for each
machine she locates at the facility is as follows:
She will compute her gross revenues per machine on a
monthly basis. From that sum, she will subtract her total
monthly expenses per machine (including supplies, wages,
insurance, taxes, depreciation, and other e�cpense items) .
Then, for each machine, she will subtract $1, 000 per month
for her profit. She will pay Rosemount the remainder of the
monthly revenues per machine or $500 per month per machine,
whichever is less.
Page - 1
She and I did some crude calculations, and from those,
we conservatively estimated that she would be able to pay
$500 per month on one machine after the first month,
assuming she sold approximately 400 cups of coffee per
month. We figured that would amount to about 25% of her
gross revenues. If you wish, she will supply you with more
formal calculations after she has had the opportunity to
consult with someone from SCORE.
As part of zhe eventual agre�ment Wlth Rosemount, sne
would like a 60-day notice af termination of the agreement.
For your information, she has recently placed a machine
at each of the following locations:
--Kwik Market, 7940 Nicollet Ave. , Bloomington, MN
--Eddie Ray's Market, 620 58th St. , Richfield, MN
In addition, you may contact the following persons as
business references:
--Max Navarro, Navarro Business Ventures, 4403
Hemingway Dr. , Dale City, Virginia 22193 , Telephone No.
(703) 551-0433 .
--Lisa Goldstein, Hudson Valley Coffee Co. Ltd, 632
Kids Lane, Charleston, N.Y. 12033 , Telephone No. 1-800-637-
6550.
If you have any questions, or need additional
inf.ormation, you may contact me at the address and phone
number listed on this letterhead, �r Ms. Jones at 14525
Camaro Lane, Rosemount, MN, Telephone No. 423-3648.
Thank you.
Sincerely, _
.
� , -�� �(�,' � �_
/�i�� �.
��.�
JoAnn McGuire
Page - 2
t � 12�15i93 09: 05 � e12 423 90?3 z P.01
December 15 , 1993
Jim Topitzhofer
Community Center Manager
2875 7.q5th St W
Rosemount, Mn 55068
RE: QUOTF, FOR VENDIhTG MACHINES FOR ROSEMOUNT COMMUI�TITY CENTER . �
Snack Machine{s) : FuII size, g].ass front , 600 item capacity.
Coffce Machine(s) : Fresh brevr full size machine, approx 300
cup capacity.
Can svpply mac5ine specs upon r.equest. .
venc?ing Item Prices; Canciy .60� ea
Chips . 50� ea
coffee . 35G� cup
The location will receive 13°6 commission on gross for ail items
listec� above-- after ail state and locaJ. sales taxes.
A7.1 machines will be equiped �aith a bill validator .
Machines will be placed and operating within 5 1,•orking days
after the signing of a p].acement agreement.
Centurion Vending is located in Ro�emount (4 mi from Comm Ctr) ,
and can respond to requests and emergencies immediately ( ?, hr
max. response time) .
Thank xou,
Mi 1a y �/ �
�d
Centurion Vending
1075 ].29th Court West
Rosemount, Mn 55068