Agenda Packets - 2013/09/23 - Laserfiche WebLink

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Item No: 07E A1OT T�7 Meeting Date: September 23, 2013 VIVDS VIEW Type of Business: Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Resolution 8154 Approving a Vending Contract with Midwest Vending Introduction: Due to issues with the current vending machines at the Mounds View Community Center and the desire to streamline vending services across multiple facilities, Staff investigated vending service options from the provider at other YMCA facilities. Staff met with the vendor, Midwest Vending, who provided a proposal to locate three machines (food and beverage) at the Mounds View Community Center and one machine (beverage only) at Mounds View City Hall. Discussion: Midwest Vending, located in Burnsville, provides healthy vending options for YMCA facilities in the metro area. The representatives from Midwest Vending reviewed the City's vending needs and structured a proposal that would offer greater selection, additional payment options, plus high-tech energy star rated machines. The present vendor for both Community Center and City Hall is Royal Vending, with whom the City has done business since about 2008. Vending revenues have decreased in recent years, and YMCA staff reports problems with the function of the machines. The machine at City Hall has also experienced malfunctions but for the most part has operated to our satisfaction. The commissions received from Royal over the last three years are as follows: 2010: $300 2011: $213 2010: $264 The annual utility costs associated with the existing four machines probably exceed the annual commissions received. The machines proposed by Midwest Vending have the latest "Energy Star" technologies which would reduce utility costs by more than 50%. The vending contract attached to the Resolution illustrates the commission schedule for the machines at the Community Center. The beverage machine at City Hall would dispense beverages "at cost" without a commission. The term of the contract would be three years, with additional one-year renewals after the initial term. The machines would be located in City Hall and the Community Center at the sole risk and responsibility of Midwest Vending. Revenues from the machines are expected to exceed what we've received in previous years from Royal Vending.