HomeMy Public PortalAbout07) 7C Vending Machine AgreementCity Council
September 18, 2012
Page2
ANALYSIS:
Shortly after completion of the Live Oak Park Community Center in 1998, staff began
receiving requests from patrons for beverage vending machines . Staff solicited, and
received, two proposals for beverage vending services -one from Coca-Cola and one
from Pepsi. Coca-Cola's proposal was more lucrative for the City and called for the City
to receive 35% commission on all sales, as well as free product each year. Two
machines were installed, one inside the Community Center and the other outside on the
south side of the facility. In 2005 staff again solicited proposals for beverage vending
services. Again, two proposals were received, from Coca-Cola and Pepsi. The proposal
from Coca-Cola was more beneficial to the City. A new agreement was executed with
Coca-Cola. The relationship with Coca-Cola continued until this year.
In 2010, upon completion of the Live Oak Park Annex, staff worked with a local vending
company, McNevin 3 in 1 Vending to provide a snack/beverage vending machine in the
Annex, primarily for use by the teens involved in the City's Teen Zone program. An
agreement for this machine was never submitted to Council for approval. The
commission from McNevin 3 in 1 Vending is 10%; however their service has been
exceptional.
The popularity of the snack/beverage vending machine in the Annex, as well as
requests from park patrons, has led staff to recommend installation of similar
snack/beverage vending machines in the Community Center. Coca-Cola does not
provide this type of machine and further, does not allow other vending services at
locations where they have an agreement. Therefore, staff issued a Request for
Proposals (RFP) for vending services for the Live Oak Park Community Center and the
Live Oak Park Annex.
A total of three proposals were received by the deadline. Proposals were received from
Premier Vend Group, Inc., Tri-Star Vending, and VendingOne. After thoroughly
reviewing the proposals for completeness and conformance with the RFP, staff is
recommending the City Council enter into an agreement with Premier Vend Group, Inc.
for the period of October 1, 2012-June 30, 2014. Premier Vend Group, Inc. will provide
22.5% commission on all sales of food and snack items. Healthy choices will be
available. Premier Vend Group, Inc. can provide cashless machines that accept
debit/credit cards and can also provide customized machine fronts (for City logo, or
other artwork). Staff has contacted and verified references for Premier Vend Group,
Inc. including the cities of Baldwin Park, Norwalk, and Pico Rivera .
CONCLUSION:
City Council approval is requested for an agreement with Premier Vend Group, Inc. to
provide vending services at Live Oak Park from October 1, 2012 -June 30, 2014.
City Council
September 18, 2012
Page 3
FISCAL IMPACT:
This item is not expected to have an impact on the Fiscal Year (FY) 2012-13 City budget.
ATIACHMENTS:
A. Vending Machine Agreement-Premier Vend Group, Inc.
B. Vending Service Proposal -Premier Vend Group, Inc.
City of Temple City
Vending Machine Agreement
ATTACHMENT A
This Agreement is entered into by, and between, the City of Temple City, located at 9701 Las
Tunas Drive, Temple City (hereinafter referred to as 'Proprietor') and Premier Vend Group, Inc.
(also known as Downey Vendors, Inc.) (hereinafter referred to as 'Operator').
RECITALS
Operator is a proprietor with principal place of business at 6814 Suva St. Bell Gardens,
California 90201. Operator is engaged in the business of installing and operating automatic
vending machines at various business locations and of selling articles of merchandise, food,
and beverages to the public through such machines. Proprietor is a municipal corporation and
charter law city and is the owner and operator of a park and recreation facility located at 1 0144
Bogue St., Temple City, State of California. Operator desires to install automatic vending
machines on the premises of Proprietor for the sale of food, snacks, and beverages, and
Proprietor desires to grant Operator a license for such purposes on the terms and conditions
contained in this agreement. Therefore, in consideration of the mutual covenants and promises
contained herein, it is hereby agreed as follows:
ARTICLE 1.
EXCLUSIVE GRANT
Proprietor hereby grants to Operator the exclusive right and privilege to install, operate, and
maintain up to three (3) vending machines on the premises of Proprietor located at the Live Oak
Park Community Center (interior and exterior of building only), 10144 Bogue St., Temple City,
State of California . Proprietor additionally grants to Operator the exclusive right and privilege to
sell food, snacks, and beverages or other merchandise on the aforementioned premises of
Proprietor by means of those vending machines installed and operated by Operator. Proprietor
shall not cause or permit the sale of these or similar items by or through the operation of
vending machines by any other person, firm, or corporation, with the exception of food, snacks,
beverages, and other merchandise sold by Proprietor in connection with City-sponsored
programs and/or events.
ARTICLE 2.
COMPENSATION
Operator shall pay to Proprietor for the exclusive right to sell assorted snack and beverages on
the described premises 22.5% percent of the Adjusted Gross Receipts from sales through the
vending machines. For purposes herein, 'adjusted gross receipts' shall be defined as gross
receipts less federal, state and local sales and excise taxes existing at the time payment is due .
ARTICLE 3.
INSTALLATION OF MACHINES
Operator shall install on the premises of the Proprietor at such locations as are mutually agreed
upon by the parties.
ARTICLE4.
REMOVAL AND REPLACEMENT OF MACHINES
Operator shall have the right to remove any of the machines installed on the premises of the
Proprietor under this Agreement and to replace any such machine with a vending machine of
similar type, quality, and appearance.
ARTICLE 5.
INCREASE OR DECREASE IN NUMBERS OF MACHINES
Operator, with permission of Proprietor, shall have the right to increase or decrease the number
of machines installed on the premises of Proprietor to adjust to changes in demand, sales, or
economic conditions, provided however, at least one machine shall be provided at all times
during the term of this Agreement. Proprietor shall have the right to impose restrictions on the
number or placement of machines where such number or placement would interfere with the
normal operation of Proprietor's recreation and park activities.
ARTICLE 6.
TERM
The term of this Agreement shall commence on October 1, 2012 and shall continue through
June 30, 2014.
ARTICLE 7.
OWNERSHIP OF MACHINES
It is understood and agreed by and between the parties that the vending machines installed on
the premises of Proprietor by Operator are and shall remain the property of Operator. Upon
termination of this Agreement by any means, Operator shall have the right to remove any and
all vending machines belonging to Operator which have been installed on the premises of
Proprietor.
ARTICLE 8.
SELECTION AND PRICING
Operator shall keep the machines stocked at all times with sufficient quantities of assorted
snacks and beverages to insure continuous service to patrons of Proprietor. Operator shall have
sole control over the selection of brands of such items to be offered for sale through the vending
machines and of the prices at which they are offered for sale, but he shall to the extent possible,
seek to offer the patrons of Proprietor a selection of brands at competitive prices.
ARTICLE 9.
RISK OF DAMAGE TO MACHINES
Except as may be attributable to Proprietor by reason of the intentional acts or active negligence
of its officers, agents, or employees, Operator assumes risk and responsibility for any loss,
destruction, or damage occurring to the vending machine(s). Operator reserves the right to seek
compensation from Proprietor from losses incurred as the result of damage to machines due
solely to the intentional acts or active negligence of Proprietor's officers, agents, or employees.
ARTICLE 10.
MAINTENANCE AND SERVICE
Operator shall regularly inspect, service, clean, and maintain the described vending machines
and shall keep them operating and in good working order, at all times promptly maintaining
them in a clean and sanitary condition in accordance with all applicable federal, state and local
laws. Proprietor shall supply suitable waste disposal containers for the convenience of users of
the vending machines and shall provide and bear the expense of garbage removal and disposal
services. All trash containers shall be emptied at least once daily.
ARTICLE 11.
NOTIFICATION OF MACHINE FAILURE
Proprietor agrees to notify Operator promptly of any failure of the vending machines to function
properly and further agrees to permit only authorized agents of Operator to remove, open, or in
any way tamper with the machines.
ARTICLE 12.
UTILITIES
Proprietor shall furnish and bear the cost of all utilities necessary for the operation of the
vending machines installed under this Agreement and shall furnish suitable utility outlets for use
by such machines. Proprietor shall provide continuous service to the machines and machine
areas and shall not cause or permit the interruption of such service except in the event of
emergency or other service interruptions not under the control of Proprietor.
ARTICLE 13.
FEES AND TAXES
Operator shall be responsible for and shall pay all state, county, and city license fees and sales
or other merchandising taxes that may be imposed on the sales of merchandise through its
vending machines.
ARTICLE 14.
RELATION OF PARTIES
It is the intention of the parties that Operator be an independent contractor hereunder, and that
no agency or employment relationship be created by this Agreement.
ARTICLE 15.
COMPLIANCE WITH LAWS
Each party shall comply with all federal, state, local, or other laws or regulations applicable to
the sale of merchandise through vending machines
ARTICLE 16.
TERMINATION OF AGREEMENT
16.1 If at any time during this agreement, the Proprietor should determine that the Operator's
service is unsatisfactory, Proprietor shall advise Operator by registered mail and Operator
agrees to correct such unsatisfactory condition(s) within a 15 day period. If Operator should fail
at such corrective action as necessary to return the level of service to satisfactory with the
prescribed 15 day period, Proprietor may cancel this agreement with a 30 day written notice by
registered mail.
16.2 If circumstances change significantly that alter the intended economic value of this
agreement, Operator reserves the right to cancel this agreement.
16.3 Notwithstanding any other provisions of this Agreement to the contrary, this Agreement may
be terminated at any time by either party hereto by a thirty (30) day notice in writing.
ARTICLE 17.
ASSIGNMENT
This Agreement shall not be assignable by either party without the prior written consent of the
other party. Subject to the foregoing limitation, this Agreement shall enure to the benefit of and
be binding upon the successors and assigns of the respective parties.
ARTICLE 18.
ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement of the parties with respect to the subject
matter hereof and supersedes any and all agreements, understandings, statements, or
representations either oral or in writing.
ARTICLE 19.
ATTORNEYS' FEES
Should any litigation be commenced between the parties hereto or their personal representative
concerning any provisions of these Articles, or the rights and duties of any person in relation
thereto, the party or parties prevailing in such litigation shall be entitled, in addition too such
other relief as may be granted, to a reasonable sum as and for their or his attorneys' fees in
such litigation, which shall be determined by the court in such litigation, or in a separate action
brought for that purpose.
ARTICLE 20.
GOVERNING LAW
The validity of this Agreement and of any of its terms or provisions as well as the rights and
duties of the parties hereunder shall be interpreted and construed pursuant to and in
accordance with the laws of the State of California.
ARTICLE 21.
INSURANCE REQUIREMENTS
Operator shall provide and maintain insurance acceptable to the City Manager or City Counsel,
in full force and effect throughout the term of this Agreement, against claims for injuries to
persons or damages to property which may arise from or in connection with the this Agreement
by Operator, its agents, representatives or employees. Insurance is to be placed with insurers
with a current A.M. Best's rating of no less than A:VII. Consultant shall provide the following
scope and limits of insurance:
21.1 Minimum Scope of Insurance. Operator shall maintain professional liability insurance
appropriate to the Operator's profession. This coverage may be written on a uclaims maden
basis, and must include coverage for contractual liability. The professional liability insurance
required by this Agreement must be endorsed to be applicable to claims based upon, arising out
of or related to services performed under this Agreement.
21.2 Minimum Limits of Insurance. Operator shall maintain limits of professional liability
insurance no less than $1,000,000 per occurrence.
21.3 Other Provisions. Each insurance policy required by this Agreement shall be endorsed
and state the coverage shall not be suspended, voided, cancelled by the insurer or either party
to this Agreement, reduced in coverage or in limits except after 30 days' prior written notice by
Certified mail, return receipt requested, has been given to City.
21.4 Other Requirements. Operator agrees to deposit with City, at or before the effective
date of this contract, certificates of insurance necessary to satisfy City that the insurance
provisions of this contract have been complied with. The City Attorney may require that
Consultant furnish City with copies of original endorsements effecting coverage required by this
Section. The certificates and endorsements are to be signed by a person authorized by that
insurer to bind coverage on its behalf. City reserves the right to inspect complete, certified
copies of all required insurance policies, at any time. Any deductibles or self-insured retentions
must be declared to and approved by City. At the option of City, either the insurer shall reduce
or eliminate such deductibles or self-insured retentions as respects City or its respective elected
or appointed officers, officials, employees and volunteers or the Consultant shall procure a bond
guaranteeing payment of losses and related investigations, claim administration, defense
expenses and claims.
Executed in Temple City, California on the day and year indicated beneath the signature of each
party.
PROPRIETOR
City of Temple City
9701 Las Tunas Drive
Temple City, CA 91780
By:
Dated:-------------
OPERATOR
Premier Vend Group, Inc.
6814 Suva St.
Bell Gardens, CA 90201
By:
Dated:-------------
ATTEST:
City Clerk
APPROVED AS TO FORM
By: ____________ _
City Attorney
ATTACHMENT B
PREMIER VEND GROUP, INC.
DOWNEY VENDORS, INC.
6814 SUVA ST.
September 4, 2012
BELL GARDENS, CA 9020 1
PHONE: (562)92& 130 1
FAX: (562) 92&550 1
Ms. Cathy Burroughs
City of Temple City
9701 Las Tunas Drive
Temple City, CA 91780
Re: Live Oak Park Vending Service Proposal
Dear Ms. Burroughs,
Per the Request for Proposal, please review the enclosed Vending Service Proposal at
your earliest convenience. The investment in technology and focus on superior customer
service explains why PVG customers are completely satisfied with our service,
equipment. products and technology.
The Service Proposal includes the following in great detail:
• Every piece of vending equipment instal1ed will be NEW!!
• Glassfront Beverage Vendors can offer up to 40 selections of different
beverages ... energy drinks, cans, bottles, Frappuccinos, water, vitamin-
enhanced water, etc.
• Guaranteed Vend Technology incorporated into all of the vendors
o If the product is not vended, the vendor automatically gives
the customer their money back
• Cash, Credit/Debit card units that will be implemented on requested
vendors.
o Becoming more vital in an ever-changing cashless society
• Green Technolog;:r '"ith Ent-q~ Vcnu \lisN~ that can reduce the
electricity costs up to 46% on the beverage vendors
• Dex Vending Sales Software incorporated into every vendor to analyze
product sales
• Offer premium, healthy, name brand products in all of all vendors
" C e r t i f i c a t e o f L i a b i l i t y c o v e r a g e u p t o $ 1 , 0 0 0 , 0 0 0 p e r o c c u r r e n c e a n d
a p p e n d C i t y o f T e m p l e C i t y / L i v e O a k P a r k a s a n a d d ' l i n s u r e d .
A d d i t i o n a l l y , I w i l l b e a s s i g n e d a s t h e P r o j e c t M a n a g e r . I g u a r a n t e e t h e i n s t a l l a t i o n o f t h e
e q u i p m e n t w i l l c a u s e v e r y l i t t l e i n c o n v e n i e n c e . I g u a r a n t e e t h e s e r v i c e s c h e d u l e a n d t h e
p r o d u c t m e r c h a n d i s e a r e c l o s e l y m o n i t o r e d a n d r e p a i r s a r e c o m p l e t e d i n a q u i c k a n d
t i m e l y m a n n e r .
F i n a l l y , I w i l l b e y o u r p o i n t o f c o n t a c t s h o u l d y o u h a v e a n y c o n c e r n s o r q u e s t i o n s a r i s e .
I f y o u h a v e a n y q u e s t i o n s o r w i s h t o d i s c u s s t h e V e n d i n g P r o p o s a l i n f u r t h e r d e t a i l ,
p l e a s e d o n o t h e s i t a t e t o c o n t a c t m e a t 5 6 2 - 9 2 8 - 1 3 0 1 ( o f f i c e ) o r 3 1 0 - 6 2 8 - 3 7 1 8 ( m o b i l e ) .
T h a n k y o u f o r y o u r t i m e a n d c o n s i d e r a t i o n .
R e s e c t f u l l y Y o u r s ,
~ - ~ ~ ~
' a v i d , R . - B c r K e r
R e g i o n a l V i c e - P r e s i d e n t
Premier Vend Group, Inc.
Downey Vendors, Inc.
6814 Suva St.
Bell Gardens, CA 90201
(562) 928-1301
Vending Service Proposal
For
City Of Temple City
Live Oak Park
10144 Bogue Street
Temple City, CA 91780
Premier Vend Group, Inc.
Service
-Provide daily service until our
Management Team can establish a proper
service schedule
-Closely monitor sales figures to maintain
proper service schedule
-Utilize technology to efficiently operate and
monitor all vending equipment and
locations
Premier Vend Group, Inc.
Technology
Premier Vend Group utilizes DEX systems on all
vending equipment
-Provides accurate sales figures to the exact nickel
-Provides exact product sales for each selection
-Provides exact inventory figures that are immediately
downloaded into PVG's network
-Provides Client with exact sales figures to confirm
commission payment
Premier Vend Group, Inc.
Merchandise
Premier Vend Group stocks the equipment with the highest quality products
on the market
-Coca-Cola -Hershey
-Pepsi -M&M/Mars
-Gatorade -Nestle
-Red Bull -Nabisco
-Frito-Lay -Hostess
PVG is always happy to special order any items that is capable of being
vended
The Serivce Associate's salary is based on the sales of the equipment
serviced; therefore, it is advantageous that the machine is merchandised
with products that are REQUESTED
Premier Vend Group, Inc.
Balanced Nutrition Program
-Dedicate multiple selections for healthy
items
-Merchandise only "Health Smart" items
-Baked Chips -Raisins
-Trail Mix -Energizer Mix
-Peanuts -Rice Crackers
-Sugar-Free Gum -Granola Bars
Premier Vend Group, Inc.
CHIPS
LSS
Cheetos Checkers
Cheetos Crunchy
Cheetos Flamin' Hot
Doritos Cool Ranch
Doritos Nacho Cheesier
Fritos
Fritos Chili Cheese
Lays
Lays KC Masterpiece BBQ
Lays Sour Cream & Onion
Ruffles
Ruffles Cheddar & Sour Cream
*-Healthy Choice Item
Balanced Choice
Baked Lays Original*
Baked Cheetos*
Baked Flamin' Hot Cheetos*
Baked Doritos*
Baked Lays BBQ*
Snyder Pretzels*
Sun-Chips Original*
Sun-Chips Harvest Cheddar*
Sun-Chips Garden Salsa*
Pop Chips Original*
Pop Chips BBQ*
Pop Chips Cheddar*
Pop Chips Sour-Cream n' Onion*
Multi-grain Nacho Chip*
Premier Vend Group, Inc.
Candy
Chocolate
Almond Joy
Baby Ruth
Butterfinger
Hershey Milk Chocolate
Kit Kat
M&M Plain
M&M Peanut
Nestle Crunch
Payday
Reeses PB Cups
Snickers
Raisinettes
3 Musketeers
Skittles
Twix
Non-Chocolate
Nature Valley Oats n' Honey*
Corn Nuts BBQ*
Corn Nuts Ranch*
Nutrigrain Bars*
Salted Peanuts*
Fiber One Bars*
Fig New Crisp Bars*
Oreos
Vanilla Wafers
Vanilla Oreos
Peanut Butter & Cheese Crackers
Fig Newton Bars
Swiss Cream Cookies
Hot Tamales
Premier Vend Group, Inc.
GUM
Big Red
Carefree
Cinn A Burst
Juicyfruit
Mint A Burst
Doublemint
MINTS
Assorted
Fancy Fruit
Peppermint
Tropical Fruit
Wild Cherry
Wintergreen
PASTRY
Bear Claw
Apple Danish
Cheese Danish
Cinnamon Raisin Danish
Cinnamon Roll
Cherry Cheese Danish
Chocolate Cup Cakes
Honey Bun
Powdered Donuts
Chocolate Donuts
Pop Tarts Cherry
Rice Krispie Treats
Premier Vend Group, Inc.
Popcorn
Act II Popcorn
Act II Butter Lovers' Popcorn
Theatre Sized Candy
Red Vines*
Mrs. Mays All Natural Cashew Crunch*
Soups
Maruchan Chicken
Maruchan Pork
Maruchan Beef
Maruchan California Vegetable
Premier Vend Group, Inc.
Energy Bars
Cliff Bar*
Kashi Bar*
Balance Bar*
Meal Items
Tuna Kits*
Chicken Kits*
Dinty Moore Beef Stew
Harmel Chili w/ Beans
Harmel Chili w/ No Beans
Harmel Turkey & Gravy Dinner
Premier Vend Group, Inc.
Refunds
All refunds accrued as a result of the vending equipment
will be paid in full
A refund bank will be established with a park
representative.
Included with the bank will be $40.00 in change plus
refund slips.
A PVG associate will visit with park representative on
a weekly basis to replenish bank and review
completed refund slips
Premier Vend Group, Inc.
Insurance Coverage
· -A copy of the Certificate of Liability
Coverage will be issued on the day of
installation naming Temple City/Live
Oak Park as an additional insured
-Each Occurrence
-Personal Injury
-Add'l Aggregate
$1,000,000.00
$1,000,000.00
$5,000,000.00
Premier Vend Group, Inc.
Equipment
Premier Vend Group installs the highest quality vending equipment on the
market
National Crane Vendors
Automatic Products
Royal Vendors
Vendo Manufacturing
All equipment is 72" tall and black-pica styling to provide an attractive bank
All equipment is fastened together
All machines will utilize the newest electric changers and dollar bill
acceptors
All equipment will incorporate SUREVEND technology (Guaranteed Vend
System)
Guarantees customers receives the product purchased through sensors mounted
on delivery door
If the product is not delivered, the equipment automatically refunds the customer
Premier Vend Group, Inc.
Equipment Placement
Community Center
National Snack Vendor
'Giassfront Beverage Vendor
Community Center (outside)
Beverage Vendor
Premier Vend Group, Inc.
PRICING
Snack
Large Serving Size Chips
Deluxe Bag Snacks
Theatre-Size Snacks
Candy
Sugar Free Mints
Drink
20oz Water
Vitamin Water
Carbonated Flavored Water
Honest Tea
Fusion Fruit Drinks
Minute Maid Juices
$1.00
$1.00
$1.75
$1.00
$0.75
$1.50
$2.25
1.75
$2.00
$2.25
$2.00
Premier Vend Group, Inc.
Loyola Marymount University
1 LMU Drive.
Los Angeles, CA
Mr. Raymond Dennis
310-338-2700
City of Pico Rivera Parks & Recreation
6767 Passon Blvd.
Pico Rivera, CA
Mr. Jose Rico
562-801-4436
Reference List
City of Norwalk City Hall
12700 Norwalk Blvd.
Norwalk, CA
Ms. Elisa Robledo
562-929-5700
City of Baldwin Park
4100 Baldwin Park Blvd.
Baldwin Park, CA
Ms. Monica Killens
626-513-8268
Premier Vend Group, Inc.
-Premier Vend Group is a family
owned & operated corporation since
1955
-PVG is a company that strives to
provide our clients with the Highest
Quality& the Best Value In The
Vending Industry