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CM-13-04-031ROUND ROCK, TEXAS r�arov. ncaon rn(xrran City of Round Rock Agenda Item Summary Agenda Number: Title: Consider executing an "Agreement for Healthy Vending Machine Service" with DRZ Vending, LLC. Type: City Manager Item Governing Body: City Manager Approval Agenda Date: 4/19/2013 Dept Director: Cheryl Delaney Cost: Indexes: Attachments: Fresh Healthy Vending Machine Agreement Text of Legislative File CM -13-04-031 The City is contracting with DRZ Vending, LLC for provision of equipment, goods and services necessary to provide Healthy Vending Services for beverages (carbonated/non-carbonated beverages), snacks (including healthy snack alternative) and drinking water to the Library on a trial basis. The City will evaluate the customer satisfaction and quantity of product sold and determine at that time if this type of healthy vending machines will be used throughout the City. The City decided to award this agreement based on the lowest cost of commodities within the machines and with a fifteen (15) percent commission being paid back to the City. Therefore, there is no cost to the City for the rental, services and maintenance of the required machines. Staff recommends approval. City of Round Rock Page 1 Printed on 4/18/2013 CONTRACT APPROVAL FORM FOR CITY MANAGER ACTION Required for Submission of Specific City Manager Items Department Name: Finance Project Mgr/Resource: Barry Becker F1City Manager Approval CMA Wording Project Name: Vending Agreement ContractorNendor: Fresh Healthy Vending Consider executing a vending machine usage agreement with Fresh Healthy Vending. Approval x❑Employee EE Bowden Date April 10, 2013 Notes/Comments Fresh Healthy Vending Machine Agreement This Agreement is entered into by and between 'Operator' DRZ Vending LLC Contact Name David Zambrzycki 'Customer' City of Round Rock TERMS Steve Norwood, City Manager Contact Name and, 1. Operator has a principal place of business at: PO BOX 1463 Cedar Park Address: City: Tx 78630 david@omavigators.com State: Zip: Email: 512-255-5203 Phone: Operator is engaged in the business of installing and operating automatic healthy vending machines at various locations. 2. Customer is the owner and operator of a business establishment located at: 221 East Main Street Round Rock Address: City: State: Texas Zip: 78664 Email: rbowden@roundrocktexas.gov 512.218.5459 Phone: 3. Operator desires to install 1 Fresh Healthy vending machines on the premises of Customer for the sale of health food items both snack and beverage. 4. Customer hereby grants to Operator the right and privilege to install, operate, and maintain Fresh Healthy vending machines on the premises of Customer. INSTALLATION OF MACHINES 5. Operator shall install on the premises of the Customer at such locations as are mutually agreed upon by the parties. C M -13-04-63I COMPENSATION 6. Operator shall pay to Customer (insert commission) 15 % (net) for the exclusive right to sell assorted "healthy" snack and beverages provided from sales through the vending machines RECORDS AND STATEMENTS 7. Operator shall maintain a complete and accurate record of all sales made through the Fresh Healthy vending machines located on the premises of Customer and covered by this Agreement and shall within submit a statement of such sales and of the commissions due the Customer. Payment in full for such commissions due shall be paid on the last day of each calendar month. TERM 8. This Agreement shall commence upon delivery and installation of the first vending machine/s and shall be for a term of 1 12, 24, 36 months from the commencement date. This agreement shall be renewed automatically and continue for successive periods, unless notice of termination is given by either party to the other within a 45 day written notice without penalty. OWNERSHIP OF MACHINES 9. It is understood and agreed by and between the parties that the Fresh Healthy vending machines installed on the premises of Customer by Operator are and shall remain the property of Operator. Upon termination of this Agreement by any means, Operator shall have the right without further notice to Customer to remove any and all Fresh Healthy vending machines belonging to Operator. SELECTION AND PRICING 10. Operator shall keep the Fresh Healthy vending machines stocked at all times with sufficient quantities of assorted snacks and beverages to ensure continuous service to patrons of Customer. Operator will seek to offer the patrons of Customer a wide selection of brands at competitive prices and will also be willing to offer products at the suggestion of the Customer or its customers. MAINTENANCE AND SERVICE 11. Operator shall regularly inspect, service, clean, and maintain the described Fresh Healthy 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. INSURANCE 12. Operator shall obtain both Product Liability and Public Liability insurance policies. A copy of this policy can be provided upon request. TERMINATION OF AGREEMENT 13. This Agreement may be terminated by either party if the other party defaults in the performance of an obligation or materially breaches any of the terms or conditions of this Agreement and fails to cure such default or breach within 3 days after service of written notice upon him of such default or breach. LOCATION INFORMATION 1 Number of vending machines presently in your location: Any contracts with current vending: Yes No 35 Number of staff & members: 800 Number of Visitors per day that have access to the vending machines: Library, too be determined What is the exact location of where the machine will be placed (i.e. lobby, main hall, breezeway)? SIGNATURES (This agreement can be signed electronically. An electronic signature (e -signing) is the same as a hand signature. To sign this document simply type "I AGREE" in the Customer Electronic Signature box.) Customer Customer Name: Steve Norwood, City Manager Customer Electronic Signature: Operator Operator Name: Operator Signature: (TYPE "I AGREE") Dated: oVir/Z.-5 02Z Ve,vp,,,9 , a L 0 Dated: If— 9 — 2 013 Once you have completed the for either either click the "submit" button to the left or save the form and manually attach it to an e-mail.