Discussion:
Current Vending Agreements
In 2012, the
City entered into agreements with Royal Vending for beverage and snack vending at the Community Center, Ice
Arena and Aquatic Park.The agreement with Royal Vending ran
for three years. City Council extended the vending agreements for one
additional year in 2015 and 2016 due to the construction project at the Community Center.
The agreement
with Royal Vending specified a
commission rate of 25% on beverage items and 20% of snack items.
Proposals
We issued Request
for Proposals (RFP) to 8 vending service providers. The RFP requested that
proposals provide the following information:
1. Percentage commission amounts for a
variety of products.
2. Wholesale beverage costs for the
concession stands at the Aquatic Park, Tahpah Park, 17th Avenue
Sports Complex, & Schleper Stadium.
3. Annual product donation for recreation
programs and special events.
4. Custom wrapped machines in the Community Center and Ice Arena.
5. An annual financial payment amount in
addition to commissions.
The proposal
specified that the new agreement would be for two years, with an option to
renew for one additional year. Service would be provided at the Community
Center, Ice Arena, Aquatic Park, 17th Avenue Sports Complex, Tahpah
Park, Schleper Stadium, and Huber Park, and an option of providing machines at
other parks, should such service be desired.
Two companies
submitted proposals: Midwest Vending and Royal
Vending. Both companies were very comparable and both offered a 20% commission rate on beverage and snack items. Both companies agreed to custom wrap the machines and provide 100 cases of canned soda to department events.
Based on the proposals, the company that appears to provide the best overall service, while providing a consistent revenue source (commission plus annual financial payment), would be Royal Vending. Royal Vending has proposed slightly lower pricing on vending items and wholesale purchases. Also, since the city has had Royal Vending for the past five years, in lieu of putting new custom wraps on all of the machines (new machines will get new wraps) Royal Vending will provide an annual payment of $500 towards the parks and recreation scholarship program.
Staff has also been very satisfied with the service provided by Royal Vending over the past five years.