Item 16.2 - Award of Bid Vending Machine Service at Poway Community Swim Center 3 AGENDAPORT SUMMARY
4111
TO: Honorable Mayor and Members of the City Council•
•
FROM: James L. Bowersox, City Mona tin"
I
lei "11Sift- 4.
INITIATED BY: John D. Fitch, Assistant City Manage►1mr`" THE
Robert L. Thomas, Director of Community Services
Greg Sundberg, Recreation Supervisor
DATE: June 13, 1995
SUBJECT: Award of Bid for Vending Machine Service at Poway Community Swim Center
ABSTRACT
The City's concession operation at Poway Community Swim Center has been modified to
accommodate vending machine operations. The City solicited proposals for this service.
Staff is recommending that the City Council award the bid for the Poway Community Swim
Center Concession vending machine operation to Southland Vending Services, in the
amount of 27.5 percent commission for two years and authorize the City Manager to
execute the attached contract.
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
FISCAL IMPACT
At a 27.5 percent commission, anticipated revenue would be approximately $2,500 per
year.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council award the bid for the Poway Community Swim
Center Concession vending operation to Southland Vending Services in the amount of 27.5
percent commission for FY 95-96 and FY 96-97 and authorize the City Manager to execute
the attached contract.
ACTION Approved staff recommendation, 5-0. / «L cq 2
Marie Lofton, Deputy City Clerk
JUN 13 1995 ITEM 16 • 2
~ AGENDA REPOR'
CITY OF POW A Y
This report is included on the Consent Calendar. There will be no separate discussion of the re~)[t prior to approval by the
City Council unless members of the Council. staff or public request it to be removed from the Consent Calendar and
discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indicating the report number
and give it to the City Clerk prior to the beginning of the City Council meeting.
TO:
FROM:
INITIATED BY:
Honorable Mayor and Members of the City Council
James L. Bowersox, City Ma~,
John D. Fitch, Assistant City Manager~~ ,~ ,~
Robert L. Thomas, Director of Community Services~\
Greg Sundberg, Recreation Supervisor
June 13, 1995
Award of Bid for Vending Machine Service at Poway Community
Swim Center
DATE:
SUBJECT:
BACKGROUND
The City's concession operation at Poway Community Swim Center has been vacant
for a year. The concession has been modified to accommodate vending machine
operations. Request for proposals were solicited for vending machine
operations at the Swim Center. The service contract will be for a two year
period with an additional two year option.
FINDINGS
Proposals were solicited from 20 companies that provide vending services and
was advertised in the local paper. Three bids were received. They are:
Bidder
Southland Vending
San Diego, CA
Amount
27.5%
DMA Vending
Poway, CA
Villarrea 1
Poway, CA
20.0%
6.0%
ENVIRONMENTAL REVIEW
This item is not sub'ect to CE A review.
ACTION:
2 of 12
))
JUN 13 1995 ITEM 16. 2
Agenda Report
June 13, 1995
Page Z
FISCAL I"PACT
At a Z7.5 percent commission, anticipated revenue would be approximately
$Z,SOO per year.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECO....ENDATION
It is recommended that the City Council award the bid for the Poway Community
Swim Center Concession vending operation to Southland Vending Services in the
amount of Z7.5 percent commission for FY 95-96 and FY 96-97 and authorize the
City Manager to execute the attached contract.
JLB:JDF:RlT:GDS
Attachment
Vending Services Contract
(C:\DATA\AGENDA\VENDMACH.COH)
JUN 13 1995 ITEM 16. 2
3 of 12
SERVICE CONTRACT
POWAY COMMUNITY PARK AND
SWIM CENTER CONCESSION
This Service Contract entered into this 13th day of June, 1995, between the
City of Poway, (hereinafter referred to as "City"), and Southland Vending
Services, (hereiRifter referred to as "Vendor") for providing and operating
vending machines at the Poway Community Swim Center Concession.
WITNESSETH
This Contract is made with reference to the following facts and objectives:
A. City, owns and operates a youth and family-oriented swim center and
recreation area for the general public in the City of Poway, County of
San Diego, California; and
B. The principal objectives of this Contract are: 1) to enable members of
the public to purchase, during specific hours the park and pool are open
to swimming and other sporting events, items associated with typical
vending machine operations (no alcoholic beverages), and 2) that the
premises and all equipment, furniture, fixtures, and other personal
property used thereon at all times be maintained in good, neat, sightly,
and sanitary condition and repair; all of the above to the satisfaction
of the City. Vending machines will include hot and cold beverage
dispenser, frozen prepackaged items, sandwiches, chips, cookies, and
candy. All machines will have the capability of providing change or a
separate change machine will be provided.
1 . TERJI
1.1 The initial term shall be for two (2) seasonal years commencing on
June 26, 1995, and ending at 5 p.m. on September 30, 1997, unless
sooner terminated or extended as provided elsewhere herein.
1.2 The Contract shall be deemed to be renewed for two (2) consecutive
one (1) year terms on the same terms and conditions unless one of
the parties serves notice on the other by registered mail at least
sixty (60) calendar days before the end of a term, stating an
intention not to extend the term for the next year.
1.3 Should City decide to release the Vendor at any time up to ninety
(90) calendar days following the normal expiration of this
Contract without notice pursuant to Section 1.2, City shall then
give Vendor notice of such intent and the terms of the new
Contract. City's decision may be preceded by the receipt of
proposals from other prospective vendors. Vendor shall have the
right for ten (10) calendar days following the giving by City of
the notice to accept the terms of the new Contract and to enter
into a new Contract with City. If Vendor fails to exercise this
right of first refusal, City shall be free to pursue vendors
without further notification to Vendor. This right of first
refusal need not be given if City is not then satisfied that
Vendor has and will operate the premises in the best interest of
the City and the public.
4 of 12
1
JUN 13 1995 HEM 16. 2
2. PAYMENT
2.1 Vendor shall pay to the City twenty-seven and one-half percent
(27.5%) of Vendor's gross receipts (as herein defined) made from
or upon the premises during the entire term. Said percentage
shall be paid on or before the fifteenth (15th) day of each
ca1.ndar month for the preceding calendar month.
2.2 Vendor's gross receipts means all receipts, of every kind and
description, arising from the vending machines, and Vendor's
employees, agendas, and licensees or concessionaires, or
independent contractors, including but not limited to, receipts
from the sales of merchandise, rentals, and charges for labor and
service, and whether made by shop personnel or vending machines,
or others. No deduction or any kind shall be considered in
determining gross receipts except funds collected for California
Sales Tax. Gross receipts shall include all cash receipts and all
credit or charge sales before any discounts, credits, allowances
or offset.
2.3 On or before the fifteenth (15th) day of each calendar month,
Vendor shall furnish City with an exact accounting of gross
receipts for the preceding calendar month. Each accounting shall
be signed and certified to be correct by Vendor and or Vendor's
authorized representative, and if Vendor is a corporation the
accounting shall be signed and certified to be correct by any
officer of Vendor. Vendor shall keep at the premises or other
convenient location in San Diego County, full and accurate books
of account, records, cash receipts, and other pertinent data
showing its gross receipts. Upon request of City, Vendor shall
also furnish to City copies of its quarterly California Sales and
Use Tax return at the time each is filed with the State of
California. Such books of account, records, cash receipts. and
other pertinent data shall be kept for a period of three (3) years
after the end of each lease year. The receipt by City of any
statement, or any payment of percentage rent for any period, shall
not bind City as to the correctness of the statement or the
payment. City shall be entitled during the term and within three
(3) years after expiration or termination of this Contract to
inspect and examine at no cost, all Vendor's books of account,
records, cash receipts, tax returns, and other pertinent data, so
City can ascertain Vendor's gross receipts. City's right to so
inspect and examine (and to an independent audit as hereinafter
provided) shall be only for the thirty-six (36) month period just
prior to the date City requests the inspection examination or
audit. Vendor shall cooperate fully with City.
JUN 13 1995 ITEM 16. 2
5 of 12
2
2.4 City shi a 1 so be ent it 1 ed, twi ce duri n~ ach 1 ease year and once
after expiration or termination of this Contract, to an
independent audit of Vendor's books of account, records, cash
receipts, and other pertinent data to determine Vendor's gross
sales, by a certified public accountant to be designated by City.
Th. audit shall be limited to the determination of gross receipts
and shall be conducted during usual business hours at the premises
of Vendor's office in San Diego County. If the audit shows that
there is a deficiency in payment of any percentage rent, the
deficiency shall become immediately due and payable. The cost of
the audit shall be paid by City unless the audit shows that Vendor
understated gross receipts by more than five percent (5%), in
which case Vendor shall pay all City's cost of the audit. City
shall keep any information gained from such statements, inspection
or audit confidential and shall not disclose it other than to
carry out the purpose of this Contract.
3. USE
3.1 The premises shall be used only for the purpose of conducting and
operating the vending machines and for no other purpose.
3.2 Vending area shall be open continuously for business during
specified hours that the Community Park and Swim Center are open
to sporting events and swimming. Hours of operation have been
established by the City as the following:
Deeember-Mal"ch April-May
Monday-Friday Monday-Friday
11 :00 a.m.-5:00 p.m. 2:00-8:00 -p.m.
Saturday/Sunday
9:00 a.m.-8:00 p.m.
.June, .JulY,A!l9Ust .
S~tHber,Oetober1 November
Monday-Sunday Monday-Friday
8:00 a.m.-8:00 p.m. 2:00 p.m.-8:00 p.m.
Saturday/Sunday
9:00 a.m.-8:00 ~.m.
3.3 Vendor agrees that all merchandise and services offered by Vendor
are subject to approval by City and that no merchandise will be
offered for sale which in the City's sole opinion, is not in
keeping with a youth and family-oriented recreation area. Vendor
further agrees that all merchandise and services will be offered
for sale at prices comparable to those charged at other public
recreation areas in San Diego County.
3.4 Vendor agrees that the content, style, appearance, and location of
all signs, placards, and advertising in or about the premises,
including window advertising, are subject to City's prior written
approval.
6 of 12
3
JUN 13 1995 ITEM 16, 2
3.5 Vendor ag s to provide a continuous reim, sement fund not to
exceed twenty dollars ($20) for money lost in machines. This will
be coordinated through the Recreation Supervisor.
3.6 Vendor shall comply promptly with all federal, state, county, and
.untcipal statutes and ordinances, and with all regulations,
orders and directives of appropriate governmental agencies, such
as now exist or may hereafter exist concerning the use,
sanitation, and safety of the vending machines.
4. FURNITURE, FIXTURES, EQUIPMENT, AND OTHER PERSONAL PROPERTY
4.1 Vendor will at Vendor's own cost and expense, equip and maintain
at the premises all furniture, fixtures, equipment, and other
personal property required by Vendor for the operation of the
premises in accordance with the objectives of this Contract.
Vendor shall have the right, at any time and from time to time and
within fifteen (15) days after the expiration or earlier
termination of this Contract to remove any and all of said
furniture, fixtures, equipment, and other personal property of
Vendor from the premises. All such properties not removed within
such time shall become and remain the property of City. The
removal of such properties shall be effected solely at the expense
of the Vendor and in a manner satisfactory to City and without
injury or damage to the premises or any of the improvements
constructed by City, and Vendor covenants to repair immediately,
at Vendor's expense any injury or damage caused by such removal.
All required licenses and permits relative to signs or other
improvements installed by Vendor shall be the sole responsibility
of the Vendor and Vendor shall pay all such costs related thereto.
Vendor will remove all Vendor owned equipment at the end of each
Contract Term.
5. IMPROVEMENTS AND ALTERATIONS
5.1 Any remodeling, repair, or alteration performed or caused to be
performed by Vendor, shall be only in accordance with plans and
specifications prepared by Vendor and approved by City. Such
plans and specifications shall be submitted to City for approval
not less than ten (10) regular business days prior to commencement
of the proposed work.
5.2 City shall have the right to require Vendor at any time prior to
commencement or completion of any remodeling, repair, or
alteration to furnish City with a performance and payment bond
written by a surety company authorized to do business in the State
of California and whose financial responsibility is reasonably
satisfactory to the City, guaranteeing City of the timely
performance of the work and specifications, and further
guaranteeing the full and complete payment by or on behalf of
Vendor of all costs, charges, and expenses in connection with or
related to the work, free and clear of all mechanics' or other
liens, conditional bills of sale, chattel mortgages, security
instruments of other liens or encumbrances of any kid or nature
whatsoever.
7 of 12
4
JUN 13 1995 ITEM 16. 2
5.3 Except. provided in Paragraph 4.1 here. . all improvements,
alterations, and fixtures located in or on the premises at the
expiration or prior termination of the term of this Contract shall
automatically at that time become the property of City without the
pi~nt of any consideration therefore, and without the necessity
of any bill of sale.
6. MAINTENANCE OF PREMISES
6.1 By entry hereunder, tenant accepts the premises and all
improvements thereon as being clean, safe, sanitary, and sightly
condition and in good repair. Vendor agrees to maintain the
premises and all improvements in said condition of good repair.
Vending machines will be serviced and repaired within 48 hours of
breakdown.
7. TAXES
7.1 Vendor shall pay before delinquency, all taxes and assessments
assessed or levied upon Vendor and improvements by reason of this
Contract (including any possessory interest tax) or on any
furniture,fixtures, equipment, and personal property thereon, or
by reason of the business or other activities or Vendor upon or in
connection with the premises, including without limitation, any
sales, use, income, or franchise tax, and shall pay any fees
imposed by law for licenses or permits for any business or
activities of Vendor upon the premises or under this Contract.
8. UTILITIES
8.1 The foregoing shall not apply to water or water meter
installations which will be furnished Vendor by City without
charge.
9. INDEMNIFICATION AND EXCULPATION
9.1 Vendor shall indemnify and hold harmless the City, its officers,
officials, employees, and agents from and against all claims,
damages, losses, and expenses including attorney fees arising out
of the performance of the work described herein, caused in whole
or in part by any negligent act or omission of the vendor, and
subcontractor, anyone directly or indirectly employed by any of
them or anyone for whose acts any of them may be liable, except
where caused by the sole negligence or willful misconduct of the
City.
10. PUBLIC LIABILITY AND INSURANCE
10.1 Vendor, at Vendor's cost, shall maintain on all Vendor's personal
property, Vendor's improvements, and alterations, in, or on, or
about the premises, a policy of standard fire and extended
coverage insurance, with vandalism and malicious mischief
endorsements, to the extent of at least one hundred percent (100%)
of their actual cash value. The proceeds from any such policy
shall be used by the Vendor for the replacement of personal
property or the restoration of tenant's improvements or
alterations.
8 of 12
5
JUN 13 1995 ITEM IS. 2
Contractor, ~ndor shall maintain a policy 0, ~eneral Liability
Insurance voerage in an amount of at least $1,000,000, on which
the City of Poway is endorsed as an additional insured.
10.2 In case this Contract is terminated, the insurance policies
previded for in this Contract, and all rights under them and the
insurance proceeds shall be assigned to the City at the City's
election.
11. NONDISCRIMINATION
11.1 Vendor agrees not to discriminate against any person or class of
persons by reason of sex, color, race, creed, or national origin.
12. ASSI6NIIENT - SUBCONTRACT
12.1 Vendor shall not assign or transfer the single or any part of this
Contract or any interest therein, nor sublease the whole or any
part of the premises, nor permit the occupancy of any part thereof
by any other person, nor (if Vendor is a corporation permit
transfer of the Contract or possession of the premises by merger,
consolidation or dissolution, nor permit sale of a controlling
interest in the voting stock in said corporation) without the
consent in writing of the City~ If Vendor is a corporation, it is
mutually agreed the personal qualifications of the parties do
hereby agree to maintain active control and supervision of the
operations conducted.on the premises. No assignment, voluntary or
involuntary, in whole or in part of the Contract on any interest
therein, and no sublease of the whole or nay part of the premises
and no permission to any person to occupy the whole or part of the
premises, shall be valid or effective without written consent of
the City, provided however, that nothing herein contained shall be
construed to prevent the occupancy of said premises by any
employee or business invitee of Vendor.
13 Vendor'S DEFAULT
13.1 The occurrence of any of the following shall constitute a default
by Vendor:
a. Failure to submit accounting when due, if the failure
continues for ten (10) days.
b. Abandonment and vacation of the premises (failure to open
and operate the premises for five (5) consecutive days shall
be deemed an abandonment and vacation per agreed times and
days, unless caused by forces beyond the control of Vendor
and Vendor exerts and continues to exert reasonable effort
to occupy and operate the premises, and Vendor is not in
default under Paragraph 13.1a above.
c. Failure to perform any other provision of this Contract if
the failure to perform is not cured within fifteen (15)
calendar days after notice has been given to Vendor. If the
default cannot be cured within the fifteen (15) day period
and diligently and in good faith continues to cure the
default.
6
JUN 13 1995 ITEM 16. 2
9 of 12
-----..----------
d. VI Jr becoming insolvent, making, assignment for the
benefit of creditors, becoming the subject of a bankruptcy
proceeding, reorganization arrangement, insolvency,
receivership, liquidation, or dissolution proceedings, or
any judicial sale of Vendor's interest under the Contract.
13.2 Netices given under this paragraph shall specify the alleged
default and the applicable lease provisions, and shall demand that
Vendor perform the provisions of this Contract or pay the rent
that is in arrears, as the case may be, within the applicable
period of time, or quit the premises. No such notice shall be
deemed a forfeiture or a termination of this Contract unless City
so elects in the notice.
14. CITY'S REMEDIES
14.1 City shall have the following set forth in sUb-paragraphs 1
through 4 of this paragraph if Vendor commits a default or if
Vendor made any material misrepresentation or omission to City in
obtaining this Contract. These remedies are not exclusive: They
are cumulative in addition to any remedies now or later allowed by
law.
14.2 (Vendor's Right to Possession not Terminated.) City can continue
this Contract in full force and effect, and the Contract will
continue in effect so long as City does not terminate Vendor's
rights to possession, and City shall have the right to collect
rent when due. During the period Vendor is in default.
14.3 (City's Right to Cure Vendor's Default.) City, at any time after
Vendor commits a default, can cure the default at Vendor's cost.
If City at any time, by reason of Vendor's default, pays any sum
or does any act that requires the payment of any sum, the sum paid
by the City shall be due immediately form Vendor to City at the
time the sum is paid, and if paid at a later date shall bear
interest at the rate of 18 percent per annum from the date the sum
is paid by City until City is reimbursed by Vendor. The sum,
together with interest on it shall be additional rent.
14.4 (Interest on Unpaid Rent.) Rent not paid within five (5) calendar
days of its due date shall bear interest at the rate of 18 percent
per annum from the date until paid.
15. ATTORNEYS' FEES
15.1 If either party becomes a party to any litigation concerning this
Contract, the premises, or the building or other improvements in
which the premises are located, by reason of any act or omission
of the other party or its authorized representatives, and not by
any act or omission of the party that becomes a party to that
litigation or by any act or omission of its authorized
representatives, the party that causes the other party to become
involved in the litigation shall be liable to that party for
reasonable attorneys' fees and court costs incurred by it in the
1 itigation.
10 of 12
7
JUN 13 1995 ITEM 16. 2
16. WAIVER BY CITY
16.1 Any waiver by City of any breach of anyone or more of the terms,
covenants, and conditions of this Contract shall not be a waiver
of any subsequent or other breach of the same or of any other
te~, covenant, or condition of this Contract nor shall any
failure of City to require or exact full and complete compliance
with any of the terms, covenants, or conditions of this Contract
be construed as changing the terms hereof, or stop City from
enforcing the full provisions hereof, nor shall the terms of this
Contract be changed or altered in any way whatsoever other than by
written agreement. All remedies herein provided are cumulative
and in addition to any others granted by law.
17. NOTICES
17.1 Notices or demands hereunder given or to be given by City or
Vendor to the other may be personally served upon City or Vendor
or any person hereafter authorized by either in writing to receive
such notice or may be served by certified letter addressed to the
appropriate address herein after set forth or to such other
address as City and Vendor may hereafter designate by written
notice.
City Manager
City of Poway
PO Box 7B9
Poway, CA 92074-0789
18. GENERAL PROVISIONS
18.1 Time is of the essence of each and all of the terms and conditions
of this Contract.
18.2 Subject to the provisions hereof with respect to assignment, the
provisions hereof shall insure to the benefit of and be binding
upon the parties hereto and upon the successors and assigns,
heirs, devises, personal representatives of the parties as fully
and to the same extent as though specifically mentioned herein in
each instance.
18.3 In this Contract, whenever the context require, the singular
number includes the plural.
18.4 Each term and each provision of this Contract performable by
Vendor shall be construed to be both covenant and a condition.
18.S Nothing contained herein shall be deemed to create any
relationship between the parties other than Landlord and Vendor.
If Vendor is a corporation, the personal qualifications of
officials/directors are part of the consideration for the granting
of this Contract and said officers/directors do agree to
personally guarantee the performance of this Contract by said
corporate Vendor.
18.6 The unenforceability, invalidity, or illegality of any provision
shall not render the other provisions unenforceable, invalid, or
illegal.
8
JUN 13 1995 ITEM 16. 2
11 of 12
-----------.------- -_._.._--"~-_..._--
19. Contract oocur 'TS
19.1 The complete Contract includes this Contract and the following
Contract documents:
a. Notice Inviting Sealed Proposals
b. Instructions to bidders
c. Bidder's Questionnaire (including financial statement)
d. Proposal
e. Verification of Bidder's Proposal, Bidder's Questionnaire,
and Financial Statement
CITY OF POWAY SOUTHLAND VENDING SERVICES
James L. Bowersox Edward J. Banko
City Manager Pres i dent
JUN 13 1995 ITEM 16. 2
12 of 12
9