CITY OF
PARKS AND RECREATION DEPARTMENT
TO: Mayor and City Commission
FROM: Richard D. Sala, City Manager
BY: Michael Sargis, Parks and
Recreation Director
DATE: October 25, 2007
SUBJECT: Report on Vending Machine “Request For Proposal” (RFP)
As reported at the July 17, 2007 Commission meeting, the Parks and
Recreation Department released a Non-Drink Vending Snack Machine RFP 06-07-292,
which was advertised from July 18th thru August 17th. The purpose of the bid was to find a non-drink
snack vendor who would be able to supply service as well as a decent commission
to the City. While the primary purpose
of the RFP was a snack vendor, the vendor also had the opportunity to provide
ATM Machines and Video Games.
To assure that as many vendors as possible had the opportunity to
submit a bid, staff contacted every snack vending machine company listed in the
phone book and invited them to submit a proposal. The following are the vendors who received an
RFP:
One Stop Vending
Krip Vending (current vendor) Gold Coast Vending
Jeff’s Vending (took 3 packets)
While 10 bids were distributed only 1 bid (Gold Coast Vending) was
returned within the time frame permitted in the RFP.
At the July 17 meeting, the Commission stressed that while a cash
commission was important, they also wanted prices to remain as cost efficient
as possible for the employees and public using the machines. Based on the one bid that was submitted, in
order for the City to receive a cash commission, the vendor would need to
charge between $0.70 and $0.85 per item.
This was a cost increase of about $0.30 to $0.40 cents per item.
Since the RFP process didn’t solicit as many proposals as anticipated,
staff has developed the following three (3) options and would like to seek
Commission’s feedback and direction tonight to select one option.
1 – The City enters into an agreement with the only bidder that
responded to the RFP and let the vendor charge the fees outlined above.
2 – City staff could solicit as many vendors as possible to try to get
the best possible deal – however, this can be a very time consuming process.
Also, since most vendors didn’t respond to the RFP, there are no guarantees
that they would respond to a direct invitation.
3 – The City could purchase the vending machines and run the service
ourselves. Since the money collected
from the other vending contracts (Ice Cream and Coca Cola) benefit the Parks
and Recreation Department, this could be done by Recreation Staff. The staff would already be working and no
additional man hours will be needed to complete this task, therefore there is
no additional costs associated with stocking the machines. This process in turn would result in 100% of
the profit coming to the City. The City
of
We look forward to Commission’s discussion and direction in selecting
one of the options mentioned above so that we can move forward with this
project.
Thank you.