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Exhibit 1 - Agenda Information Sheet City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement DCM: David Gaines DATE: April 19, 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 Ben E. Keith Company, for the supply of food and concessions at the Water Works Park and Civic Center Pool concession stands for the Parks and Recreation Department; providing for the expenditure of funds therefor; and providing an effective date (IFB 7854 – awarded to Ben E. Keith Company, for one (1) year, with the option for two (2) additional one (1) year extensions, in the total three (3) year not-to-exceed amount of $255,000.00). INFORMATION/BACKGROUND Historically, the concession stands at the Water Works Park have been operated by Parks and Recreation Department (PARD) staff since the park opened in 2003. The Civic Center Pool concession stand has been operated by PARD since 2007. The concession stands offer food and refreshments during public swims and special events. A three-year history of concessions expenditures are as follows for Water Works Park and the Civic Center Pool: FY 2017-2018 $49,850.09; FY 2018-2019 $55,500.89; FY 2020-2021 $70,370.13. PARD staff will be opening the Tidal Wave Concession stand for Summer 2022. The stand was closed during Summer 2021 due to damage from the 2021 winter storm. With a more centrally located concessions stand and an expanded menu, staff is preparing for an increase in sales and expenditures for FY 2022-2023. Staff based the contract amount on an estimate from previous history and an anticipated increase in costs due to eco-friendly supplies. Contracting out for concession supplies is a common practice in the aquatics City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com industry. It allows the organization to receive the most competitive pricing and the efficiency of on-site delivery. The concession stands at the Water Works Park and the Civic Center Pool operate with a goal of a minimum of one hundred percent cost recovery. Data gathered from FY 2020-2021 confirms that operations at the concession stands have been a profitable venture for the City. The combined net profit for FY 2020-2021 was $77,534.36. Year 1 Year 2 Year 3 Annual Amount $80,000 $80,000 $80,000 Contiengency $5,000 $5,000 $5,000 Contract Total $255,000 Invitation for Bids was sent to 40 prospective suppliers, including six (6) Denton firms, of this item. In addition, specifications were placed on the Procurement and Compliance website for prospective suppliers to download, and advertised in the local newspaper. One (1) bid was received, and references were checked to ensure the vendor can provide the services requested in the Scope of Work. The department is awarding the contract to Ben E. Keith Company. NIGP Code Used for Solicitation: 385 – Foods, Frozen & 390 – Foods: Perishable Notifications sent for Solicitation sent in IonWave: 40 Number of Suppliers that viewed Solicitation in IonWave: 6 HUB-Historically Underutilized Business Invitations sent out: 5 SBE-Small Business Enterprise Invitations sent out: 20 Responses from Solicitation: 1 RECOMMENDATION Award a contract with Ben E. Keith Company, for the supply of food and concessions at the Water Works Park and Civic Center Pool concession stands for the Parks and Recreation Department, in a one (1) year, with the option for two (2) additional one (1) year extensions, in the total three (3) year not-to-exceed amount of $255,000. PRINCIPAL PLACE OF BUSINESS Ben E. Keith Foods Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for two (2) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION These products will be funded from the Parks and Recreation accounts, Water Park Other/Misc. Materials 207002.6390 and Civic Center Pool Other/Misc. Materials 411160.6390. Requisition #154811 has been entered into the financial software system in the amount of $80,000. The budgeted amount for these items is $250,000. 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: Nikki Sassenus, 940-349-7469. Legal point of contact: Marcella Lunn at 940-349-8333.