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• EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET <br /> 2 <br /> PROJECT TITLE: <br /> Consent COUNCIL BILL# <br /> Vending Agreement with Summit X Action Originating Department <br /> Vending Inc. for Vending First Reading Contact Person Paul Kaftanski/ <br /> Machine Services at Everett Tom Hingson <br /> Station Second Reading Phone Number 257-8822/ <br /> 257-8939 <br /> Third Reading FOR AGENDA OF August 3,2005 <br /> Public Hearing <br /> Initialed by: <br /> Department Head <br /> CAA <br /> Council President /-f� C <br /> Location Preceding Action Attachments Department(s) Approval <br /> Everett Station Budget Committee Vending Agreement Legal <br /> July 19, 2005 between City of Everett <br /> and Summit Vending, Inc. <br /> Amount Budgeted <br /> Expenditure Required Account Number(s): <br /> Budget Remaining <br /> Additional Required <br /> DETAILED SUMMARY STATEMENT: <br /> The City of Everett issued a Request for Proposals(RFP) for Everett Station vending services on May 25,2005. Two <br /> vendors submitted proposals. Coca-Cola (the current beverage vendor) proposed Coke beverages. Summit Vending <br /> (the current snack vendor)proposed both snacks and beverages. Because Summit is an independent contractor, its <br /> proposal included the option for Coke and/or Pepsi products. Summit offered the City a 39.5% share of sales revenue <br /> for beverages and a 42.5% share of sales for snacks. Coke offered the City 40%of sales. Both proposals included <br /> agreement to comply with RCW 74.18.220,the state requirement to pay the Department of Services for the Blind <br /> (DSB)a percentage of gross sales. The RFP identified it as ten—percent. <br /> Staff recommends Summit Vending as the provider for both snack and beverage service based to the following: <br /> 1) The proposed percentage to the City is one-half percent less than Coke's, however the ability of Summit to mix <br /> Pepsi and Coke products provides more variety to station customers and is expected to earn more revenue for the City <br /> than a single product vendor may provide; and 2)Summit has a proven record at Everett Station for responsiveness, <br /> maintenance of machines and quality service. <br /> Based on current volumes, the agreement is expected to yield approximately $18,000 annually in revenue to the City. <br /> The proposed effective date is September 1,2005 through February 28, 2007 with an option to extend the agreement <br /> for an additional eighteen- months through August 31,2008. <br /> RECOMMENDATION: Authorize the Mayor to sign the Vending Agreement between The City of Everett and <br /> Summit Vending, Inc. for vending machine services at Everett Station. <br />