Fiscal Note
This agreement would provide a guarantee of $9,000 to Metro for the initial (one-year) contract period, with a provision for additional revenues during the period based on volume of sales. Metro would need to make electrical upgrades in approximately the same amount as the guarantee in the initial year. The transit system may receive $26,000 or more in additional revenues depending on volume of sales. Additional annual electricity costs would be negligible ($40 overall). Additional maintenance labor costs (if any) associated with picking up refuse or cleaning up spillages associated with having vending machines at the Transfer Points is not known, but will be considered in potential renewal agreements.
Title
Authorizing the Mayor and City Clerk to sign and execute an agreement between the City of Madison and WP Beverages, LLC for the provision of vending machine services for cold beverages at Metro Transit's North, South, East, and West Transfer Points for an initial period of one year, with an option to extend the agreement for two (2) periods of one (1) year each by mutual agreement of the parties.
Body
PREAMBLE
Members of the TPC indicated an interest in obtaining auxiliary income from vending services at Transfer Points. A request for proposals was issued and bid submittals received. Proposals were evaluated on the basis of cash guarantees, percentage of after-tax gross receipts offered on sales, and responsibility of the proposer. Three vendors submitted five proposals for the right to operate vending machine services for cold beverages in 20-ounce plastic bottles at Metro's North, South, East, and West Transfer Points. WP Beverages, LLC of Windsor Wisconsin received the highest scores for its proposal among the proposers.
WHEREAS the Transit and Parking Commission has indicated an interest in obt...
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