Agenda Packets - 2008/04/14 - Laserfiche WebLink

Home Browse Search

Item No. 8D Meeting Date: April 14, 2008 Type of Business: Consent Clerk - Administrator Review _______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Clerk - Administrator Item Title/Subject: Resolution 7253, a Resolution Approving a Contract with Royal Vending for Vending Services at the Community Center and City Hall Background: City Staff and the Community Center Staff have not been pleased with the product selection, quality and service associated with C&S Vending, the current vendor providing machines at the Community Center. There is no contract between the vendor and the City and the machines yield very little revenue for the City. There are no beverage or snack machines in City Hall Discussion: Royal Vending proposes to provide food and beverage vending machines at the Community Center and a beverage machine at City Hall. Royal Vending carries both Coca-Cola and Pepsi products. Coca-Cola does not allow any foreign products in their machines, however Pepsi will allow two foreign products in their machines. So two Coke products could be included in a Pepsi machine. Some of the Pepsi brands include Lipton, SoBe, Starbucks, Tropicana, and Gatorade. The contract with Royal Vending would be for 36 months. There is no cost to the City, and the City can collect a commission from sales at City Hall by raising the prices above those suggested. The prices suggested for the Community Center would provide a monthly payment from Royal Vending of 10% of net sales. The City Attorney has reviewed the standard contract offered by Royal and prepared an addendum to the contract which provides the City with the right to terminate the agreement for any reason with a thirty-day written notice. Royal has agreed to this amendment. Recommendation: Staff recommends approval of Resolution 7253, a resolution approving a vending agreement between the City of Mounds View and Royal Vending to provide for exclusive food and beverage vending services at the Community Center and City Hall.