Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: March 22, 2022
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with Mega Promotions, Inc., for food and beverage
concession services for the Parks and Recreation Department; providing for the expenditure of funds
therefor; and providing an effective date (RFP 7876-01 – awarded to Mega Promotions, Inc., for a one (1)
year term, with the option for four (4) additional one (1) year extensions, in the total five (5) year term).
INFORMATION/BACKGROUND
The Parks and Recreation Department (PARD) offers various sports tournaments, leagues, and special
events from March through November of each year. On June 5, 2018, City Council approved a food and
beverage concession services for PARD programs for three years. This contract was extended by Council
in March 2021 due to the leagues being impacted by the COVID-19 pandemic. Contracting out the
concession stands was identified as a process improvement for PARD during the FY 2017-2018 budget
presentation. The change in the service model is expected to save staff time by eliminating operation duties
and reducing expenditures associated with the purchase of goods and supplies. PARD would continue to be
responsible for scheduled maintenance and related costs for the required upkeep of the concession stands.
There are no additional expenditures associated with the implementation of an outside service contract.
During the life of the current contract plus the extension, Mega Promotions, Inc. has paid PARD $13,925.38
in revenue.
In addition to saving City resources, other advantages considered include expanded menu options and
improved customer service by professionals with extensive experience in the concession business.
Contracting the concession stands was also expected to increase net revenue. The contractor’s menu prices
for standard concession items such as water, Gatorade, candy, pickles, hot dogs, and nachos are within 50¢
to $1 of City managed prices. Expanded menu items not previously offered by the City, such as deluxe
nachos and tacos, range from $1 to $4 more than the standard items. Per the contract, the City will have
final approval on the menu and pricing.
In awarding this contract, PARD will continue to improve efficiencies, expand product offerings, and
increase customer service. By reducing staff time dedicated to operating concessions, the athletics division
temporary/seasonal staff will be able to redirect resources to monitoring league games, providing customer
assistance, and managing incidents/accidents at the athletic complexes. This will provide a greater customer
service experience to our league patrons. Professional staff time will be better utilized by implementing and
managing our athletics program offerings.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Request for Proposals was sent to 437 prospective suppliers, including 50 Denton firms. In addition,
specifications were placed on the Procurement and Compliance website for prospective suppliers to
download and advertised in the local newspaper. One (1) proposal was received, and references were
checked to ensure the vendor can provide the services requested in the Scope of Work. The proposal was
evaluated based upon published criteria including compliance with specifications, probable performance,
and price. The department is awarding the contract to Mega Promotions, Inc.
NIGP Code Used for Solicitation: 385, 390, and 961
Notifications sent for Solicitation sent in IonWave: 437
Number of Suppliers that viewed Solicitation in IonWave: 8
HUB-Historically Underutilized Business Invitations sent out: 39
SBE-Small Business Enterprise Invitations sent out: 200
Responses from Solicitation: 1
RECOMMENDATION
Award a contract with Mega Promotions, Inc., for food and beverage concession services for the Parks and
Recreation Department, in a one (1) year term, with the option for four (4) additional one (1) year
extensions, in the total five (5) year term.
PRINCIPAL PLACE OF BUSINESS
Mega Promotions, Inc.
Denton, TX
SUSTAINABILITY MEASURES
PARD has required that the vendor shall use biodegradable cutlery, cups, and plates in all concession stands.
No Styrofoam products will be allowed for serving. Healthy food options such as salads and smoothies
should also be made available.
FISCAL INFORMATION
The City of Denton will receive 25% of gross sales from the vendor.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Jason Barrow, 940-349-7218.
Legal point of contact: Marcella Lunn at 940-349-8333.