Exhibit 1 - Agenda Information Sheet - Amend 1City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: February 18, 2025
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 extension between the City of Denton and Compass
Group USA Inc. dba Canteen through April 14, 2026, to continue vending machine services for the City;
and declaring an effective date (RFP 7026 – extending a contract with Compass Group USA Inc. dba
Canteen, to April 14, 2026).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Strengthen Community and Quality of Life.
INFORMATION/BACKGROUND
The City has approximately 50 vending machines and one micro market located at various City facilities.
This contract is for providing state-of-the-art current-model vending machines for beverages/snacks and
maintenance services in the designated locations throughout the City. The vendor provides machines free
of charge with no lease or monthly charges, these machines will remain vendor property and will be returned
to the vendor upon contract expiration or termination. Additional machines may be added at any time at
the City’s request.
The City will receive between a 12.3% to 16.3% commission on all vending sales after a net sale of $350
per month per vending machine. Based on the previous year's sales, the expected commission is
approximately $7,000 to $9,000 per year. The commissions received will be used to offset the allocation to
the Procurement division.
Extending this contract will allow City staff to continue vending machine services while we review options
for alternate services as the needs of the City change.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 15, 2019, City Council approved a contract with Supreme Food Services, dba Vend Pro
Refreshment Services (Ordinance 19-2360).
On July 18, 2022, Purchasing executed an assignment of contract from Supreme Food Services, dba Vend
Pro Refreshment Services to Compass Group USA, Inc. dba Canteen.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
On October 4, 2024, Purchasing approved a contract extension to January 14, 2025.
On January 7, 2025, Purchasing approved a contract extension to April 14, 2025.
RECOMMENDATION
Award a contract extension with Compass Group USA, Inc. dba Canteen, to continue vending machine
services for the City, for a contract term to expire on April 14, 2026.
PRINCIPAL PLACE OF BUSINESS
Compass Group USA, Inc. dba Canteen
Boston, MA
ESTIMATED SCHEDULE OF PROJECT
This contract will expire on April 14, 2026.
FISCAL INFORMATION
These products and services will be funded through the using department’s budget on an as-needed basis.
The City will only pay for services rendered and is not obligated to pay the full contract amount unless
needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance, Contract, Assignment, and Extensions
Exhibit 3: Ordinance and Amendment 1
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Lori Hewell, 940-349-7100.
Legal point of contact: Marcella Lunn at 940-349-8333.