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Home My WebLink AboutResolution 8154 RESOLUTION 8154 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING A VENDING CONTRACT WITH MIDWEST VENDING TO PROVIDE VENDING SERVICES AT MOUNDS VIEW CITY HALL AND THE MOUNDS VIEW COMMUNITY CENTER WHEREAS, the City of Mounds View presently receives vending services on a month to month basis from Royal Vending located in Maple Grove, MN.; and, WHEREAS, in an effort to streamline vending services and promote healthier snack and beverage choices, the City requested a proposal from Midwest Vending, located in Burnsville, MN, the company which provides such services for the YMCA; and, WHEREAS, Midwest Vending has submitted a proposal to provide three beverage and snack machines at the Mounds View Community Center and one beverage machine at Mounds View City Hall for an initial three-year term; and, WHEREAS, both City and YMCA staff reviewed the proposal and recommends the City approve the attached contract. NOW, THEREFORE BE IT RESOLVED, that the Mounds View City Council does hereby approve a vending contract with Midwest Vending to provide snack and beverage vending machines at the Mounds View Community Center and Mounds View City Hall in accordance with the submitted proposal and attached contract, and authorizes the Mayor and the City Administrator to execute said contract on behalf of the City. Adopted this 23rd day of September, 2013 •e Flaherty, Ma ,,� ATTEST: James Ericson, City Administrator (seal) ‘f,,a': M I DW EST VENDING AGREEMENT THIS AGREEMENT,made this August 23,2013 between City of Mounds View hereinafter known as CMV and Midwest Vending, Inc.,hereinafter known as the Operator, Witnessed: WHEREAS, City of Mounds View is desirous of granting the Operator exclusive privilege of operating all beverage and snack machines within the designated areas. WHEREAS,the Operator represents that the Operator is duly qualified to operate a vending machine service; NOW,THEREFORE,IT IS MUTUALLY AGREED AS FOLLOWS; A. PERMIT TO OPERATE: Subject to the terms and responsibilities set forth in this agreement,CMV grants the exclusive right to the Operator to operate and maintain vending machines for the retail sale of snacks and beverages at 5394 Edgewood Dr. and 2401 County Rd 10 Mounds View,MN 55112 This permit is made to Operator only and is not transferable and cannot be further contracted. This agreement will have a term of Three(3)years by mutual agreement. The three(3)year term of this agreement will commence September 12th,2013 and terminate on September 12th,2016.This agreement will renew for additional(1)one year periods unless written notice is received 30 days prior to the conclusion of the initial term and or subsequent periods. B. RESPONSIBILITIES OF THE OPERATOR: The Operator shall have the following responsibilities with the vending machine service program(hereinafter referred to as vending machines). 1. The Operator agrees to install,operate and maintain coin or currency operated vending machines capable of automatically dispensing permitted items within the area named above and in the area of the building now designated. It is understood that only vending machines will be permitted and it is expressly intended to preclude the operator from establishing a stand or shop for the purposes of selling any items and also to exclude any form of personal salesmanship. B. RESPONSIBILITIES OF THE OPERATOR, continued The Operators must own,purchase or rent vending machines. CMV is not responsible for their procurement nor cost. All vending equipment and security measures shall have the approval of the CMV prior to installations. Equipment must have been manufactured in 2005 or later. The Operators shall guarantee that all equipment shall meet the approval of State and local health department specifications, and the specifications published by the United States Public Health Federation. The Operators shall retain ownership of the vending equipment. 2. The Operators will not erect or allow to be erected any signs,displays,or advertising devices in the buildings except for those signs contained on the vending machine,which are necessary for identification and the proper control and maintenance of the individual vending machines. 3. The Operator will carry and keep in force during the full term of this agreement at the Operator's own expense a policy or policies of insurance as insured in the amounts and of the type as follow: COVERAGE MINIMUM LIMITS COMMERCIAL GENERAL LIABILITY COMBINED SINGLE LIMIT $1,000,000 OR BODILY INJURY/PROPERTY DAMAGE $1,000,000 EACH OCCURRENCE AUTOMOBILE LIABILITY(INCLUDING HIRED AND NON-OWNED) COMBINED SINGLE LIMIT $1,000,000 OR BODILY INJURY/PROPERTY DAMAGE $ 500,000 EACH PERSON $1,000,000 EACH OCCURRENCE WORKMEN'S COMPENSATION INSURANCE (AS REQUIRED BY LAW) The Operator shall provide a Certificate of Insurance to CMV upon request. 4. The Operator shall at all times,keep or cause to keep the machines in proper mechanical working order,making all necessary repairs, and keep or cause to keep the machines adequately stocked so as to insure continuous service. B. RESPONSIBILITIES OF THE OPERATOR,continued 5. The Operator will make refunds whenever a customer makes a request. CMV has a refund system in which the Operator will participate. 6. The Operator shall assume all risk for any loss of and to its equipment, money and products from whatever cause including,but not limited to theft, vandalism during normal business hours. 7. CMV shall at all times retain the right to inspect the machines and vending area to assure maximum cleanliness and otherwise compliance with specifications. 8. All receipts from vending operation shall belong to the Operator,who shall be responsible for all Operator costs herein noted as well as payment of the agreed upon commission payable to CMV 9. The Operator shall be required to report to CMV by the tenth(10)day of the following QUARTER,the net sales and commission for each machine. Payment of the commission shall be due at that time. 10. This agreement may not be canceled by CMV or the Operator at any time without cause. CMV may cancel this contract for breach,as determined by CMV,which shall consider such items as,but not limited to: insufficient insurance coverage,failure to provide required period statements or to pay period commission due on or before the 10th day following the period in which they were earned, failure to enforce required standards of sanitation,or quality of service is unsatisfactory to CMV. CMV shall provide ten(10) calendar working days written notice of contract breach and unless within ten(10) calendar days such neglect has ceased and arrangements made to correct,CMV may cancel the contract by giving sixty(60)days notice in writing by registered or certified mail of its intention to cancel this contract. EXHIBIT "A" BEVERAGES EQUIPMENT, PRICING AND COMMISSIONS Equipment Mounds View City Hall 1 Can Beverage$0.75 Bottle Water$1.00 No Commission Mounds View Community Center 2 Beverage Machines with Credit card readers and 1 Snack Machine* *Commission rates below. Commission Midwest Vending Inc. in exchange for a three-year contract,will pay CMV the following commission structure: Pricing Product Price Commission l2oz Beverages $1.00 19%* 20oz Beverages $1.75 19%* Bottled Water $1.50 19%* Juice $1.75 to$2.50 14%* Snacks $0.75 to$3.00 19%* Candy '• .25 14%* Joim � e 'H• %s Midwest Vending, Inc. DATE Joe Flaherty,Mayor DATE City of Moundsview Jim Ericson, City Administrator DATE City of Moundsview IN WITNESS WHEREOF,having read or heard read this agreement, and acknowledging the incorporation of EXHIBIT"A"into this agreement by reference the parties hereto have caused this agreement to be duly executed. Aliiimpoi if / Jo!Harris dwest Vending, Inc. DATE Joe Flaherty,Mayor DATE City of Moundsview Jim Ericson,City Administrator DATE City of Moundsview