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Home My WebLink AboutCS 05-20Cf� ei? DICKERING Report to Executive Committee Report Number: CS 05-20 Date: March 2, 2020 From: Marisa Carpino Director, Community Services & Deputy CAO Subject: Vending Services Agreement - Naccaration Enterprises Limited - File: A-1440 Recommendation: 1. That the Mayor and City Clerk be authorized to execute a Vending Services Agreement with Naccaration Enterprises Limited as set out in Attachment 1 to this report, subject to minor revisions as may be required by the Director, Community Services & Deputy CAO and the Director, Corporate Services & City Solicitor; and, 2. That the appropriate City officials be authorized to take the necessary actions as indicated in this report. Executive Summary: In recent months, the City of Pickering accepted proposals for a snack Vending Service Agreement to provide snack vending services throughout City owned facilities. Naccaration Enterprises Limited submitted the highest ranking proposal for a five year agreement, beginning on April 1, 2020 and ending on March 31, 2025. As such, the Community Services Department recommends that a new Vending Services Agreement be initiated with Naccaration Enterprises Limited. Financial Implications: The revenue to be generated from Naccaration Enterprises Limited will include a one-time signing bonus of $500.00 and commissions sales of 32 percent estimated to total $8,715.00 annually. Discussion: In October of 2019, the City invited four snack vending service providers to submit a proposal to provide snack vending machine services within City owned facilities, in the absence of a written agreement with the existing vendor. Three of the four snack vending service providers responded with a proposal which were evaluated by Community Services staff. Naccaration Enterprises Limited provided the most favourable proposal based on the evaluation criteria of equipment provided, servicing of equipment, products sold, refund policies and commission rates. As most City owned facilities do not include concession stand or snack bar type services, snack vending machine services are vital to maintain customer health, wellness, and enjoyment while in CS 05-20 March 2, 2020 Subject: Vending Services Agreement Page 2 facilities. Snack vending machines will be located in Chestnut Hill Developments Recreation Complex, Don Beer Arena, George Ashe Community Centre & Library, City Hall, Central Library Branch, and the Pickering Operations Centre. These vending machines will offer for sale a variety of products from traditional snacks to more healthy options. Naccaration Enterprises Limited is prevalent in the municipal market place and has similar Vending Service Agreements in place with the Town of Ajax, Town of Richmond Hill, and the Town of Halton Hills to name a few. As such, the Director, Community Services & Deputy CAO recommends that a new Vending Services Agreement be initiated with Naccaration Enterprises Limited for a five year term, beginning April 1, 2020 and ending on March 31, 2025. Attachments: 1. Vending Services Agreement Prepared By: Kevin Hayes Supervisor, Facilities Operations MC:kh Approved/Endorsed By: Marisa Carpino, MA Director, Community Services & Deputy CAO Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer z, ZoZ4 CORP0227.07101 revised Attachment #1 to Report #CS 05-20 NACC VENDING ENTERPRISES VENDING SERVICES AGREEMENT BETWEEN: NACCARATION ENTERPRISES LIMITED 66 Langstaff Road West Richmond Hill, Ontario L4C 6N3 Louie Naccarato, President Cell: (905) 763-2155 e-mail: naccvending@sympatico.ca AND CITY OF PICKERING 1The Esplanade Pickering, Ontario LIV 6K7 Attention: Kevin Hayes, Supervisor Facilities Operations Community Services Department Tel: 905-420-4660 x 3250 l.ha es'a pickcrim?.Ca VENDING EQUIPMENT: 7 Snack Machines will be placed at various City of Pickering venues at NO Charge, including delivery and installation. A listing by location and equipment model is attached (Appendix A). Installation will be completed within 30 days of formal award. The City of Pickering agrees that all the equipment listed in this agreement and unsold products shall remain the property of Naccarato Enterprises during this contract and thereafter. SERVICE AND MAINTENANCE: Naccarato Enterprises shall fill and service the vending machines on a weekly basis or more often if necessary. Preventative maintenance service will also be performed by the vending technician as required. Each visit the machines will be completely filled, cleaned and changers reloaded and tested each visit. Every two months the machine parts are checked and replaced if needed. Product dates are constantly monitored so that products are sold prior to best before dates. Nacc Vending retains full responsibility and costs for any and all maintenance and repairs required. Equipment is regularly checked, cleaned and repaired when necessary. For any service or maintenance requirements the contact for this account is Louie Naccarato at (905) 763-2155. Service calls will be responded within 2 hours and On-site services will be provided within 4 hours minimum and 12 hours maximum of the issue being identified. Refund Policy: A S50 float will be left with the venues and will be replenished weekly or as needed. In addition, Naccarato Enterprsies will also provide e -transfer as an option to refund patrons. We will clearly advertise our name and telephone number on the front of each vending machine so that we can be contacted for service issues. PRODUCTS AND PRICES: PRODUCT SELECTION AND HEALTHY FOOD OPTIONS: A listing of product offerings and prices is attached. The list includes traditional, healthier and a variety of unique products catering to changing international tastes. Our products are purchased from global, brand name, manufacturers who all have significant sustainability policies and procedures in place. These companies are committed to making and delivering their products in ways that are both environmentally and socially responsible. COMMISSIONS: 32% commission, calculated on Net Sales (Gross Sales less HST) on the Regular Snack Vending Machines will be paid to the City of Pickering on a quarterly basis. Quarterly commission reconciliations including beginning and ending meter readings will be provided along with payment by the 15th of the month following the quarter end. A one-time signing bonus in the amount of $500 (Five Hundred Dollars) will be paid at the start of the contract. Our financial team will ensure appropriate financial protocols are maintained and ensure that the appropriate retail taxes and client payments are made on time. We will also monitor that internal controls and auditing trails are maintained and that account revenues can be analyzed and audited by vendor account, machine, and location. Meter readings can be audited at any time at the request of City of Pickering. In addition, quarterly commission reconciliations including beginning and ending meter readings will be provided by the 15th of the following month and will show the net amount owing. A sample commission statement is enclosed as part of the proposal. EQUIPMENT SPECIFICATIONS: High quality Crane Vending Machines will be placed at all designated locations at City of Pickering locations. The Models are Crane Merchant Media. The equipment will be brand new or "like new" (5 years or less) as approved by the City of Pickering. The following features form part of the model: • Coin mechanisms and bill acceptors will take all Canadian currency up to $20 for cash collection and Change • At least one machine per location will accept debit and credit card payments • Any installation of machines will be done smoothly and with very little disruption to the City of Pickering locations • Vending machines are outfitted with electronic audit systems and sales reporting capabilities • Will include out of service indicators • Accept all bills and coins including $1.00 and $2.00 coins • Provide Energy Star Rated Equipment which includes energy saving features as sleep modes, lights powering off • For safety and security reasons vending machines will be banked or secured to a wall where needed • All Crane machines are equipped with Guaranteed Product Delivery systems "SureVend". This technology guarantees 100% product delivery. Infrared technology detects any unsuccessful vend cycle, guaranteeing that the customer either receives their product, or gets their money back. This technology greatly reduces the chance that the customer will lose their money or not get the item they have selected. • Service calls will responded within 2 hours and On-site services will be provided within 4 hours maximum of the issue being identified. As noted in earlier sections, Louie Naccarato will be the Account Manager for the City of Pickering venues. He is available 24 hrs/day 7 days per week for all service calls or emergency situations. MAINTENANCE AND RESTOCKING: Replenishing and Cleaning Schedule: Staff will replenish and clean machines weekly or more frequently if deemed necessary by the vending route technician. Product dates are constantly monitored so that products are sold prior to best before dates. The machines will be completely filled, cleaned, and the changers reloaded and tested. Preventative Maintenance Schedule: Every two months parts will be replaced and machines are sanitized. EMERGENCY AFTER HOUR SERVICES: For any service or maintenance requirements the contact for this account would be Louie Naccarato (905) 763-2155 24 hrs/day 7 days per week. Service calls will responded within 2 hours and On-site services will be provided within 4 hours maximum of the issue being identified. Food Quality Standards Naccarato Enterprises is knowledgeable and adheres to all applicable Canadian, Federal, Provincial and Municipal Acts, Orders and Regulation and amendments governing food quality standards. High quality brand named packaged snack products will be provided to meet the diverse needs and tastes of the City of Pickering venue staff and guests. Products provided in vending machines will comply with all laws related to food handling and food labelling and health regulations. Price Increases: Naccarato Enterprises understands that prices will be reviewed on an annual basis and any increases will not be implemented unless approval is received in writing by the City of Pickering. INSURANCE: Naccarato Enterprises will maintain at its sole cost and expense comprehensive general liability insurance in the amount of $2,000,000 per occurrence for all claims. The City of Pickering will be named as "additional insured" within the general liability insurance coverage. Evidence of insurance will be provided to the City of Pickering via a Certificate of Insurance on or before contract start date. In addition, Naccarato Enterprises will provide the City with a Certificate of Clearance from the Workplace Safety and Insurance Board (WSIB) on or before contract start date. COMPANY REPRESENTATIVE: The contact for the purposes of this agreement and related services is Louie Naccarato, President, Naccarato Enterprises Limited 66 Langstaff Road West Richmond Hill, Ontario L4C 6N3. Tel: (905) 763-2155 LENGTH OF TERM: The term of this agreement shall be for a period of 5 (five) years commencing on and ending on (the "Term"). The City shall have the option to renew this Agreement for up to three (3) additional one (1) year terms upon written notice to Naccarato Enterprises no later than six (6) months prior to the expiration of the Term, or any renewal term. Each successive renewal term shall be based on the same terms and conditions as set out herein. City of Pickering reserves the right to terminate this Agreement at any time during the Term, or any renewal term, for any purpose as determined by City of Pickering by giving Naccarato Enterprises six (6 ) months' notice in writing. NACCARATO ENTERPRISES Per: Authorized Signing Officer CITY OF PICKERING Per: Authorized Signing Officer DATE: WE HAVE THE NACC FOR SNACKS!!! 66 Langstaff Road West Richmond Hill, Ontario L4C 6N3 Louie Naccarato, President Tel: (905) 763-2155 e-mail: naccvending@sympatico. ca NACCARATO ENTERPRISES LJM1TFD CITY OF PICKERING PROPOSAL SNACK VENDING PROPOSAL PROFILE OF PROPOSED EQUIPMENT BY LOCATION - BROCHURES WITH DETAILS AND DIMENSIONS ENCLOSED LOCATION PROPOSED EQUIPMENT MANUFACTURER'S NAME BRAND LOCATION PROPOSED EQUIPMENT MANUFACTURER'S NAME BRAND I Chestnut Hill Recreation Complex 2 Snack Machines Crane Merchant Six Snack Machine Don Beer Arena 1 Snack Machine Crane Merchant Six Snack Machine 1887 Valley Farm Road 940 Dillingham Road Pidkenng, Ontario LIV 3Y7 Pickering Ontario L1 W 126 1 6111 Changer or Validator 1 Bit Changer or Validator Preventative Maintenance Routine Eery two (2) months Test, Replace Parts, Sanitize and Clean Coin Medi Preventative Maintenance Routine Every two (2) months Tess, Replace Parts, Sanitize and Clean Coln Mech George Ashley Community Centre and Ubray 1 Snack Machine Crane Merchant Six Snack Machine City of Pickering Operations 1955 Clements Road 1 Snack Machine Crane Merchant Six Snack Machine 470 Kingston Road Pickering, Ontario LIV 61(7 Pickering. Ontario LIV 1A4 1 Bill Changer or Validator 1 BM Changer or Validator Preventative Maintenance Routine 'Even/ two (2) months -er. Replace Parts, Sanitize and Clean Coin Meeh Preventative Maintenance Routine Every tyre (2) months Test Replace Parts, Sanitize and Clean Coln Mech City Hat h Snack Machine Crane Merchertt Six Snack Machine Central Library Branch 1 Snack Machine Crane Merchant Six Snack Machine 1 The Esplanade 1 The Esplanade Pickenria Ontario LIV 6K7 Pickering. Ontario LIV 6K7 ' Bill Changer or Validator 1 Bill Charger or Validator Preventative Maintenance Routine -: cry two (2) months Test, Replace Parts, Sanitize and Clean Coin Mech Preventative Maintenance Routine Every two (2) months Tess. Replace Pegs, Sanitize and Clean Coin Mech 'All Crane National Vendors Merchandisers carry the Sure Vend Product Delivery System - Infrared technology detects whether the vended product has dropped guaranteeing that the customer either receive their product or get their money back - Neccarato Enterprises will leave company contact name End info on each machine so that patron can make arrangements to obtain rnonies if lost All vending machines will be capable of accepting $1.00 and $2.00 coins and accept Debit/Credit Payments All vending machines are outfitted with an electronic audit system All vending machines are outfitted with energy efficient systems