HomeMy WebLinkAboutContract 37495 (2)iTY SECRETARY
NTRAJCDT NO
VENDING SERVICE AGREEMENT
BETWEEN
THE CITY OF FORT WORTH
BACON WHITNEY LLC
This Agreement ("Agreement") is made and entered into by and between Bacon Whitney
.LC, a Delaware corporation, acting by and through its duly authorized Chief Operating
Officer, (hereinafter called "Operator") and the City of Fort Worth, a home rule
municipal corporation situated in Tarrant, Denton and Wise Counties, Texas (hereinafter
referred to as the "City"), acting by and through its duly authorized City Manager.
The City grants to Operator the exclusive right to sell, through vending machines, the
following: prepackaged snacks and confections, and similar vended items, at City
facilities identified at the location(s) set forth in Exhibit B, (the "Premises") for the term
established in this Agreement. In consideration of the mutual promises and obligations
hereinafter set forth to be performed and observed by each of the parties, the parties
hereby covenant and agree as follows:
1. Term
This Agreement shall be in effect for a period of five years beginning on
July 7, 2008 and expiring on July 7, 2013, unless (i) mutually extended under the
terms hereof or by written agreement of the parties or (ii) terminated sooner in
accordance with this Agreement.
2. Consideration
2.1 Operator will pay City, in consideration of the exclusive rights granted
herein, certain mutually agreed upon amounts on the sale of certain
vending products in accordance with the terms and conditions set forth in
the Commissions Schedule, attached to this Agreement as depicted in
Exhibit A, of which Commissions Schedule is made a part hereof and
incorporated by reference into this Agreement.
2.2 Commissions shall be paid quarterly in accordance with the Operator's
quarters on or before the twentieth (20t`) day of the month following the
end of the applicable fiscal quarter of the Operator on which the
Commission is being paid.
2.3 All payments due the City shall be due and payable without demand by
check at the office of the City Manager, or at such other place in Fort
Worth , Texas as the City Manager may hereafter notify Operator (in
writing with reasonable advance notice), and shall be made in legal tender
of the United States. [ r
OFFICIAL
REC(3RC!
CITY SECRETARY
FT WORTH, TX
1
1 1lot , i r 1=• a r!
The obligations,•• • and rights of Operator providing
vending services set forth in this Agreement, and the obligations, responsibilities
and rights of the City in connection with such contracted services shall be
governed by
4. Vending 1VIachines and �crvices
4.1 Operator shall provide for the installation of its vending machines in
designated service areas as approved by the City at the Premises, as
depicted in Exhibit B. City agrees to accept the vending machines and to
furnish adequate space, utilities and utility outlets in such locations, and to
provide Operator with reasonable access to its vending machines at the
Premises.
4.2 Operator shall be solely responsible for the management, operation,
maintenance and repair of the vending machines at the City's Premises.
All vending machines, together with the contents thereof, are and shall
remain the property of the Operator, and only the Operator or its
representatives may remove or replace the vending machines at the
Premises. Operator reserves the right to remove unproductive or
frequently vandalized or damaged equipment from specific locations.
4.3 City reserves the right to approve the specific location and relocation of
vending machines subject to this Agreement and the exclusivity provisions
contained herein.
4.4 Operator will provide City, including the City's licensed and contracted
concessionaires, reasonable free maintenance service to the vending
machines under a routine schedule as provided by the Operator, to include
weekly service/inspection by the route supervisor, and biweekly
service/inspection by the operations manager, but only to the extent that
Operator owns or operates the vending machines to be serviced. All
vending machines service will be provided during normal business hours
of the City, i.e. 8:00 AM — 5:00 PM, Monday through Friday, holidays
excluded.
4.5 Upon receipt of a service request, Operator shall provide the City a toll
free service number. Upon request by the City or the City's licensed and
contracted concessionaries for vending machine service, Operator will
respond within eight (8) hours during regular business hours and within
twenty-four (24) hours during non -business hours and weekends,
excluding holidays recognized by the City, but only to the extent that
Operator owns or operates the vending machines requiring service.
Operator shall not be obligated to provide service hereunder during
periods in which it is prevented from doing so due to strikes, civil
disturbances, unavailability of parts or other causes beyond the control of
Operator. Neither Operator nor City shall be liable for damages of any
kind arising out of delays of the Operator in rendering service due to
strikes, civil disturbances, unavailability of parts, or any other
2
circum ances which are a .• beyon control • - *perator.
6 Delivery trucks shall be permitted only • • existing service drives,r;
available,must be clearly identified with Operator's name. Where no service drives
are delivery trucks should follow applicable parking regulations.
All Operator's and employees must have identificationon
clothing clearly identifyingwho they are and the Operator's• a;
logo*
5. Installation Schedule
Upon execution of the Agreement, the City and Operator agree to the following
schedule:
vendingPriority locations requiring earlier installations will be mutually agreed
upon between the City and Operator.
e2 Future machines, if deemed necessary by both parties,be
underinstalled • provisions as mutually agreed upon
between the City and Operator.
Operator,•a, costs associated with the installationof
vendingOperator designated vend' machines.
Mg
a5 The City shall not be responsible for any damage to Operator designated
•wever, the City shall make reasonable"• •
prevent vandalism,and damage • Operator designated •
machines.
6.1 The terms and conditions of this Agreement may be cancelled by the
parties, such cancellation to be effective only by written notice by certified
or registered mail and specifying a termination date which shall be no less
than thirty (30) days after the receipt thereof.
6.2 In the event that either party shall default in the performance of any of its
obligations hereunder, and such default shall not be cured by the
defaulting party within thirty (30) days after receipt by the defaulting party
of a written notice sent by certified or registered mail from the aggrieved
party specifying such default, and the default is not cured, the aggrieved
party may terminate this Agreement by sending to the defaulting party
termination notice as described in section 6.1, above.
7. Pe fitted Excenti®ns
City shall have the right to permit vending machines to be made available:
7.1 To fulfill the City's contractual obligations with the Sports Advisory
Council and any rights granted thereto unto the Sports Advisory Council;
or
7.2 To fulfill any previously existing contractual obligations of the City prior
to the execution of this Agreement, including, but not limited to, any
Facilities listed in Exhibit B. In the event of a conflict between this
3
Contractecretary •. 31742 shall control.
• 1 • • ' 1 i
LTORS
?ELATED TO THIS AGREEMENT OR THE PERFORMANCE OF THIS
7PPLY TO ANY L'IBILITY RESULTING
FROM THE
_
iEGLIGENCE, OMISSION OR INTENTIONAL MISCONDUCT OF THE
srITY OR ITS OFFICERS, AGENTS, EMPLOYEES OR SEPARATE
• •A • _ ,:
• • is , ,• J i • I I �.
• I'..
9.1 The Operator shall carry insurance in types and minimum amounts as
described below acceptable to the City for the duration of this Agreement
and, prior to the Commencement Date, shall furnish the City Manager's
Office with Certificates of Insurance.
1. Commercial General Liability (CGL)
$1,000,000 each occurrence
$2,000,000 aggregate limit
Coverage shall include but not be limited to the following: premises
operations, independent contractors, products/completed operations,
personal injury, and contractual liability. Insurance shall be provided on
an occurrence basis, be as comprehensive as the current Insurance
Services Office (ISO) policy.
L
2. Autoanob- a Uia ility
$1,000,000 each accident on a combined single limit basis
Or
$25000 Property Damage
$5009000 Bodily Injury per person per occurrence
•efmcd as autos owned, hired and non -owned.
Statutory
Employer's liability
11 Iifaccident/occurrence
11 10t; Disease � policy limit
96Z Insurers shall have no right of recovery or subrogation against the City of
Fort Worth, it being the intention that the insurance policy shall protect all
parties to the Agreement and be priiary coverage for all losses covered by
the policies.
9.3 Operator issui the insurance policy shall have no recourse against the
Ing
City of Fort• •i payment of premiums or 1 _ for
deductibles which all are at the s• of •
9.4 The terms "Owner", "City" or City of Fort Worth shall include all
authorities, Boards, Bureaus, Commissions, Divisions, Departments, and
Offices of the City and the individual members, employees and agents
thereof in their official capacities and/or while acting on behalf of the City
of fi • f
insured).5 The policy clause "Other Insurance" shall not apply to any insurance
coverage currently held by City, to any future coverage, or to City's self�
retention of whatever
.6 The City, its officials, employees, agents and officers shall be endorsed
as an "Additional Primary Insured" to Commercial General Liability
and Auto Liability policies. The City, its officials, employees, agents
and officers shall not be endorsed as an "Additional Insured" to
Compensation and Employers Liabilitycoverage.
.7 Coverage shall be a Combined Single Limit Per Occurrence basis and the
policy shall include Broad Form Property Damage Coverage with an
insurance Operator satisfactoryto City. If insurance policies are not
written for , -d coverage limits, an Umbrella
insurance • differences is required., • • •
form of the primary coverage.
.8 All policies shall be written by an insurer with an A�:Vlll or better
by the • • • - •- • rating
such other financially sound insurance carriers acceptable to the City.
• -• • be listed on - of • shall be on
5
• 1 If coverage is undade basis,- retroactive date
shall be coincident with or prior to the date of the contractual agreement
and the certificate of insurance shall state that the coverage is claims�made
and the retroactive date. The insurance coverage shall be maintained for
the duration of the contractual agreement. An annual certificate of
insurance submitted to the City shall evidence such insurance coverage.
.11 Certificates of Insurance shall be delivered to the City of Fort Worth, 100a
Throckmorton• •rth, Texas 76102, evidencing all the required
coverages, including endorsements.
asurance to lapse during the term of this Agreement1 onth
•eriod followingcompletion,•' , 1,•' policy.
righteserves the to review the 'insurance requirements of • during
periodffective of • . • to make reasonableadjustments•
risurance coverage, their limits when deemed necessary, based upon changes in
atutory law, courtdecisions or the claims historyof the industry or 1.
ondition of _ insurance company, of the Operator.
Any notice or other communication hereunder shall be in writing, shall be sent via
registered or certified mail, overnight courier, or confirmed facsimile transmission
and shall be deemed given when deposited, postage prepaid, in the United States
mail, addressed as set forth below, or to such other address as either of the parties
shall advise the others in writing:
arr
• • 11•
Mentionv,.
If to City:
City of Fort Worth
1000 Throckmorton Street
Fort Worth,
Attention:
Facsimile
_
Texas 76102
with a copy to:
City Attorneys ®ffce
1000 Throckmorton
C
• r •'1
The City shall have, for three (3) years following the termination of this
Agreement and upon reasonable advance notice, access to and the right to
examine and audit any books, documents, papers, records or other data of
Operator that involve transactions relating to this Agreement. Accordingly,
Operator shallprovide the City with access during normal working • of
Operator's facilities and with appropriate workspace at Operator's facilities
necessary for the City to conduct examinationsand audits in accordance
12. C®%dentiality
Operator understands and acknowledges that the City is a public entity under the
laws of the State of Texas, and as such, all documents held by the City are subject
to disclosure under Chapter 552 of the Texas Government Code. Operator shall
clearly indicate to the City what information it deems proprietary. If the City is
required to disclose any documents that may reveal any Operator Proprietary
information to third parties under the Texas Government Code, or by any other
legal process, law, rule or judicial order by a court of competent jurisdiction, the
City will utilize its best efforts to notify Operator prior to disclosure of such
documents, and give Operator the opportunity to submit reasons for objections to
disclosure. The City agrees to restrict access to Operator's information to those
persons within its organization who have a need to know for purposes of
management of this Agreement. The City agrees to inform its employees of the
obligations under this paragraph and to enforce rules and procedures that will
prevent any unauthorized disclosure or transfer of information. The City will use
its best efforts to secure and protect Operator's information in the same manner
and to the same degree it protects its own proprietary information; however, the
City does not guarantee that any information deemed proprietary by Operator's
will be protected from public disclosure if release is required by law.
13. 'Trademarks and c®pyri�hts
No party shall obtain, by this Agreement, any right, title, or interest in the
trademarks of the parties, nor, except as provided herein, shall this Agreement
give any party the right to use, refer to, or incorporate in marketing or other
materials the name, logos, trademarks or copyrights of the other parties.
13.1 Operator, its designees or assignees, shall not use, any designated Account
Marks or copyrights of the City of Fort Worth, photographs and/or
recordings, or sell, transfer, or give any original prints or reproductions for
circulation and/or publication for use by a third party, in any manner that
reflects unfavorably upon the good name, goodwill, reputation, or image
of the City of Fort Worth. Operator, its designees or assignees, shall not
use the any designated Account Marks, copyrights, photographs and/or
recordings in any manner that would cause confusion in the public mind as
7
• - of the designated Account Marks or • • • of the City of •
thirdWorth shall be incorporated into a common graphic or be associated with
party trade• or Operator, its designees or assignees,
may •' use any of designated marks or •• • of of Fort
Worthor authorize1 • Wide Website •; on any other
on4mie site, except as specifically approved by the City of Fort Worth.
Operator, designees • or assignees, not •' or
manufacture or production of - . 1 •. • the
designated or copyright•' prior • of
3.2 Operator •' • assume full responsibilityfor • •
Federal Copyright Law of 1978 (17 U.S.C. 101, et seq.) and any
Regulations issued thereunder including, but not limited to, the
assumption of any and all responsibilities for paying royalties which are
due for the use of copyrighted works in Operator's performances or
exhibitions to the copyrightowner, or • or d copyright
owner. City expresslyno obligations, 4 1 or otherwise,
regarding payment or • • of f fees or obligations.
City specifically does not authorize, permit, or condone the performance,
reproduction, or other use of copyrighted materials by Operator or its
agents without the appropriate licenses or permission being secured by
Operator in . •
The City assumes no responsibility or liability with respect to the content of any
material published by Operator, its designees or assigns. Operator, its designees or
assignees, shall be responsible for all such content, and shall indemnify and hold
the City harmless with respect to such content and use.
14. Assi�nnient
This Agreement or any part hereof shall not be assigned or otherwise transferred
by any party without the prior written consent of the other party. Operator may
not assign, transfer or otherwise convey any of its rights or obligations under this
Agreement to any party without the prior written consent of the City, which
consent shall not be unreasonably withheld or delayed, conditioned on (i) the
prior approval of the assignee or successor and a finding by the City Council that
the proposed assignee or successor is financially capable of completing this
Agreement and (ii) the proposed assignee or successor has executed a written
agreement with the City under which it agrees to assume all covenants and
obligations of Operator under this Agreement, in which case such assignee or
successor shall thereafter be deemed "definition of other party" for all purposes
under this Agreement.
15. Affiliati®n
City acknowledges and agrees that Operator has an affiliate, 24Seven USA
Franchising Limited (24Seven), in the business of franchising vending routes, and
that Operator shall be and entitled to assign, subcontract or delegate its rights and
or responsibilities under the Agreement to any 24Seven franchisee with the
vriften consent ot the Uity. DrRieven shall De required to comply NN h al the
erms of Agreement.
•ALUX ,: ,. f, 1 I)MVACUIT
The parties are acting heremi as independent contractors and independeWi
employers. Nothing heremi contained shall create or be construed as creating
partnership, joint venture or agency relationship between the parties and no party
shall have the authority to bind the other in any respect.
•1. it �,:
If any action, whether real or asserted, at law or in equity, arises on the basis of
any provision of this Agreement, venue for such action shall lie in state courts
located in Tarrant County,or • States District Courtfor
Northern District of Texas � Fort Worth Division. This Agreement shall be
construed in accordanceof of
It is understood that by execution of this Agreement, the City does not waive or
surrender any of its governmental powers.
19. I'®rce aieure
It is expressly understood and agreed by the parties to this Agreement that if the
performance of any obligations hereunder is delayed by reason of war; civil
commotion; acts of Clod; inclement weather; governmental restrictions,
regulations, or interferences; fires; strikes; lockouts, national disasters; riots;
material or labor restrictions, transportation problems; or any other circumstances
which are reasonably beyond the control of the party obligated or permitted under
the terms of this Agreement to do or perform the same, regardless of whether any
such circumstance is similar to any of those enumerated or not, the party so
obligated or permitted shall be excused from doing or performing the same during
such period of delay, so that the Term shall be extended for a period of time equal
to the period such party was delayed.
�perator,- or postpone -d_• delivery or event
f public safety.
Z0. Severability; Headin
20.1 If any provision of this Agreement shall be held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired.
20.2 The headings or captions of the various sections of this Agreement are for
convenience of reference only and shall in no way modify or affect the
meaning or construction of any of the terms or provisions of the applicable
Agreement.
0
21. Compliance with Laws, Ordinances, Rules and Regulations
20.1 Each party hereto agrees that it will, in its performance of its obligations
hereunder, fully comply with all applicable laws, regulations and ordinances of all
relevant authorities and shall obtain all licenses, registrations or other approvals
required in order to fully perform its obligations hereunder.
20.2 This Agreement will be subject to all applicable federal, state and local
laws, ordinances, rules and regulations, including, but not limited to, all
provisions of the City's Charter and ordinances, as amended.
22. Entirety of Agreement
This Agreement, including the exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
between the City and Operator, their assigns and successors in interest, as to the
matters contained herein. Any prior or contemporaneous oral or written
agreement is hereby declared null and void to the extent in conflict with any
provision of this Agreement. This Agreement shall not be amended unless agreed
to in writing by both parties and, if required, approved by the City°s City Council.
CITY OF FORT WORTH
i
Assistant City Manager
ATTEST:
City Secretary
Approved as to Form and Legality
Assistant City Attorney
BACON WHITNEY LLC
yIN
CcAtr&ct. Authoirizatiox
Date
OFFICIAL R�COR®
CITY SECRETARY
T. WORTH, TX
I1:
COMMISSIONS SCHEDULE
Pursuant to Section 2.1 of the Vending Agreement of which this Commissions Schedule
is made a part thereof and incorporated therein by reference, Operator has agreed to pay
to City 24.1 percent of its gross receipts on the following products sold through its
vending machines as set forth below ("Commissions"), subject to the terms and
conditions set forth in this Commissions Schedule:
PRODUCTS SUBJECT TO COMMISSIONS
COMMISSIONS
PERISHABLE ITEMS
PRICING
NON-PERISHABLE PRODUCTS
GUM &MINTS
CANDY
CRACKERS
LARGE SINGLE SERVE FRITO LAY
REG. CHIPS
PASTRY
BIG COOKIE
POPCORN
POPTART
BASIS FOR AMOUNT OF
24.1
0%
PRICE
0.55
0.75
0.75
0.85
0.65
1.00
0.85
0.85
0.85
After Agreement Year One, Operator may increase vending machine prices if mutually
agreed upon by both parties.
Commissions shall only be paid upon the categories of products specifically identified
herein. Commissions shall be paid quarterly in accordance with the Operator's fiscal
quarters, on or before the thirtieth (30th) day of the month following the end of the
applicable fiscal quarter of the Operator, unless otherwise expressly provided herein.
Commissions shall be paid on a quarterly basis in accordance with the amount of
Commissions generated or projected to be generated on average on a monthly basis as set
forth in Section 2.2 of this Agreement, unless otherwise expressly provided herein.
Commissions shall be paid to the City at the address set forth in the Agreement.
11
I�
iii
m
0
z
O
M
r
-
_ C
0
v
O
N
C
0
L
5
V
C[!
•�
ii
apoD de
0
0
0
0
0
0
0
0
0
Qcon
UO
V)
rA
O
O
O
O
0
u
u
3
�W
�
M
M
It
O
O
O
O
O
O
O
O
�+
O
O
O
O
U
o
z
DO
�
F
�w
u"
U
0
w
a
�
0
aw
�+>4Qwd
FCC✓Z
�WOO�:)UwUO
a
Qw
HrWL
H
d�
A-i
CQ
wU(.7CZCQ7r):�,g
x
a
0as
UU
UL7
UU
N
O
N
O
O
cc
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
r
q
c7
a
w
�4
a�4
cm�N
cn
w
U
�
�
�0
t�
�
00
r�
O
O
l
O
O
O
O
O
O
O
O
M
O
O
O
O
O
O
cV
N
1�
N
h
(N
O
O
M
O
O
O
M
O
O
'd
Q
Q
A
d
rEm�ii
rFMmqis
un�
U)
�
FG
Ln
Uo
z
z
o
o
¢
°
b
C
O
W
x
O
O
d
O
Z
F
O
H
W
x
U
x
0
w
d
O
O
N
M
O�s
O
kn
O
M
--�
O
�--+
�--�
'--i
�
N
�--�
O
O
O
O
O
M
N
M
v)
Cn
O
Wn
IC
O
00
O
N
M
O
l�
�--�
•--�
•--�
•--�
l�
N
01
M
IC
N
Lr)
�c
.--�
w�
w�
ao
Q
�o
��
��H
H
HQ
wQ
of
�o
y�
o
o
ow
W¢Uo�
kA
O
O
U
aQ�
QOH
3a
�zua�
U
�a��a�z�
z
�
�
�00
P1
0.1
P7
0.1
¢
W
P1
a�
P1
P�
OWH
OUP
wUwCd7
wa
U
(�
N
aaCCR
aM4
a 1
aav�5
9
�aaa
M
O
O
O
O
O
O
O
O
O
O
O
O
r
O
O
O
O
O
O
O
O
O
O
O
O
ti
P�
0.1
N
N
z
z
a
d
A
a
l
l
N
00
00
00
so
�mO
NT
O
O
O
O
O
O
O
O
O
O
O
O
O
Nti
N
O
O
N
N
O
O
O
O
q
2r�
ri
PaA
A
A
x��
�i
cn
coo
z
�
o
a
a
C)
C)
z
o
o
z
AC7�
o
a
z
z
z
�
�
o
o
u
¢�
O�
a
00
A
a
O
Z
z
O
c�
U
4
w
x
x
H
U
a
ti
ti
a
a
ti
ti
A
d
a
N
M
O
vi
kn
O
O
O
O
O
-
O
O
�
kn
-
O
M
O
M
O
N
00
00
�'
cY
00
00
01
O
O
N
+
W
E
o
U
O
w
d
0
�4
�dd
a
L7
Q
o
a
U
d
Nz
a0
a
x
�Hd
W
E
O
GOO
O
as
O
Gn
00
��
ooapdw
�U
�UpE"
�Z¢L7
OQ
aO
2r
W
OW
Ow
a�W
w
W
W
o
N
U�
N
OC
4
O
>
3H
3
H
�'
�
�
O
OAW
H
qH
A
z
U4
U
UC7
'CdCd0�
UFO
O
NdaW�
dA
d�
�
oa'Cd7
a;C7NN
�
��
PM,ao'
LW7Ld7
A
QxU
Page 1 of 2
City of Fort Worth, Texas
• • • • •
COUNCIL ACTION: Approved on 1/29/2008
DATE: Tuesday, January 29, 2008
LOG NAME: 60VENDING
REFERENCE NO.: C-22654
SUBJECT:
Authorize aTen-Year Beverage Contract with Coca-Cola Bottling Company and aFive-Year Snack
Vending Contract with All Seasons Services, Inc.
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute both aten-year beverage
agreement with Coca-Cola Bottling Company and afive-year snack vending agreement with All Seasons
Services, Inc.
DISCUSSION:
On May 18, 2004, (M&C C-20085) the City Council authorized the City Manager to execute an agreement
with Public Enterprise Group (PEG) to assist in developing corporate partnership revenue programs. In
exchange for assisting the City in identifying and negotiating any partnership contract, PEG would receive a
12 percent commission on all revenue it raises for the City through such contracts. Since that time, PEG
has changed its name to Active Marketing Partnerships (AMP).
A staff working group was formed in 2005 to work with AMP to gather information, identify and evaluate
potential partnership opportunities and perform additional tasks relevant to developing the program. The
most beneficial potential partnership was identified to be in the beverage/vending area.
Currently, a number of departments have their own relationships/contracts with beverage and vending
vendors. Revenue is deposited into various accounts, which makes it difficult to track and maintain. These
two multi -year contracts will allow identified groups who have along -standing relationship to continue, while
identifying and capturing the remaining beverage and vending opportunities. The relationship will allow for
improved revenue tracking for the City, increased revenue from both up -front payments and increased
commission rates, improved service by having one company versus multiple vendors, increased in -kind
donations as well as special promotions/can advertisement opportunities, etc.
In January 2006, the City of Fort Worth decided to reissue a new Request for Proposals (RFP) excluding
specific locations originally included in the previous RFP. The City also amended the RFP to include city
golf courses. The contract will include identified beverage and vending machines in City buildings, i.e. City
Hall, City Cafeteria, City Hall Annex, libraries, off -site city facilities, and recreation centers. The estimated
revenue is based on a guaranteed marketing fee as well as commission on beverage vending sales. AMP
will receive 12 percent of revenue received as part of this agreement and will be compensated only for
commissions on actual revenues received and deposited by the City.
During the course of this evaluation, the City of Fort Worth Golf Division conducted preference surveys with
golfers, who responded that they preferred Coca-Cola 2 to 1 over Pepsi -Cola. Based on feedback from
customers, the comparison of overall value, as well as the comparison of the net present value of each
http://apps.cfwnet.org/council�acket/Reports/mc�rint.asp 8/26/2008
Page 2 of 2
proposal, the recommendation of staff and AMP, is to award aten-year contract to Coca-Cola Bottling
Company and afive-year contract to All Seasons Services, Inc.
The estimated net revenue of the Coca-Cola agreement is $1,343,602, which does not include AMP's
commission of $161,232. The City also could potentially receive $280,000 in marketing in -kind and volume
incentives.
The agreement with All Seasons Services, Inc., calls for no guaranteed up front dollars. During the five-year
agreement, the City of Fort Worth will receive 24.1 percent of the annual snack revenue received from all
applicable vending machines.
A total of $373,000 will be provided to key stakeholders (Public Events, Parks, Golf, Sports Advisory
Council, Cafeteria, etc.) for maintenance/operational costs and to match current contractual
agreements. The City Manager's Office will continue to work with the Budget Office in monitoring the
payment schedule of this agreement, as well as, track revenue based on consumption on an annual basis.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Budget Department is responsible for the collection and deposit of
revenue due to the City.
TO Fund/Account/Centers
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
FROM Fund/AccountlCenters
Joe Paniagua (6191)
Kirk Slaughter (2501)
Anthony J. Snipes (8819)
http://apps.cfwnet.org/council�acket/Reports/mc�rint.asp 8/26/2008
Page 1 of 1
City of Fort Worth, Texas
• • • • •
DATE: Tuesday, August 26, 2008
LOG NAME: 25VENDING
REFERENCE NO.: **C-22986
SUBJECT:
Approve the Correction of M&C C-22654 to Correct the Name of the Contracting Entity from All
Seasons Services, Inc., to Bacon Whitney, LLC
RECOMMENDATION:
It is recommended that the City Council approve the correction of M&C C-22654 to correct the name of the
contracting entity from All Seasons Services, Inc., to Bacon Whitney, LLC.
DISCUSSION:
On January 29, 2008, the City Council authorized the approval of M&C C-22654 for snack vending services
with All Seasons Services, Inc. Prior to the execution of the contract All Seasons Services, Inc., was
acquired by Bacon Whitney, LLC. Bacon Whitney, LLC, is now the proper contracting entity for the snack
vending contract. All other items in M&C-22654 will remain the same.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
Tom Higgins (6575)
Kirk Slaughter (2501)
James Horner (2505)
http://apps.cfwnet.org/council�acket/Reports/mc�rint.asp 8/26/2008