HomeMy WebLinkAbout6.m. Receive Price Quotes and Award a Contract - Rosemount Community Center Arena Vending MachinesEXECUTIVE SUMMARY
City Council Regular Meeting: June 20, 2017
AGENDA ITEM: Receive Price Quotes and Award a
Contract - Rosemount Community
Center/Arena Vending Machines
AGENDA SECTION:
Consent
PREPARED BY: Dan Schultz, Parks and Recreation
Director AGENDA NO. 6.m.
ATTACHMENTS: None APPROVED BY: LJM
RECOMMENDED ACTION: Motion to authorize the City Clerk and Mayor to enter into a 2
year Vending Machine contract for the Rosemount Community Center/Arena.
ISSUE
The Parks and Recreation Department recently sent out a Request for Proposals (RFP) for vending
machine services at the Rosemount Community Center and Arena. The services to be provided through
the RFP would include machines that sell hot and cold beverages and snack items. The RFP was sent to
the several vending companies. We received three proposals to provide services to the City. Listed below
are the highlights of the proposals that we received:
Vending RFP
Soda Soda Snacks Sm Snacks Sm.Snacks Lg Snacks Lg.Candy Candy
Price Commission Amt we get Price Commission Amt we get Price Commission Amt we get Price Commission Amt we get
Breaktime Beverage $2.25 25% 0.5625 $1.25 25% 0.3125 $1.50 25% 0.375 $1.75 25% 0.4375
Soda Soda Snacks Sm Snacks Sm.Snacks Lg Snacks Lg.Candy Candy
Price Commission Amt we get Price Commission Amt we get Price Commission Amt we get Price Commission Amt we get
Royal Vending $1.75 20% 0.35 $1.25 20% 0.25 $1.25 20% 0.25 1.35 20% 0.27
Soda Soda Snacks Sm Snacks Sm.Snacks Lg Snacks Lg.Candy Candy
Price Commission Amt we get Price Commission Amt we get Price Commission Amt we get Price Commission Amt we get
Midwest Vending $2.00 20.10% 0.402 $1.00 20.10% 0.201 $1.75 20.10% 0.351 $1.50 20.10% 0.3015
SUMMARY
It is staff’s opinion that the City should use a vendor that sells the merchandise at a lower price in hopes of
creating a higher volume of sales, although the commission from each item sold might be less. Based on
feedback from several other recreation facilities, if we were to use a vendor who charges more for their
merchandise and provides a larger commission, we would end up with about the same revenue (which
annually is approximately $4,300).
The City Attorney has reviewed a contract that the City will use for our vending services.
Staff is recommending that the City Council authorize the City Clerk and Mayor to enter into a 2-year
Vending Machine contract with Royal Vending for vending services at the Rosemount Community
Center/Arena.