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HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: May 19, 2026 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 stand operations at athletic complexes for the Parks and Recreation Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8964 – 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). STRATEGIC ALIGNMENT This action supports Key Focus Area: Strengthen Community and Quality of Life. INFORMATION/BACKGROUND The Parks and Recreation Department (PARD) operates concession stands at North Lakes Softball Complex, Denia Softball Complex, and Vela Athletic Complex. These stands serve patrons during league games and tournaments. To improve efficiency and service quality, PARD is entering into a contract with Mega Promotions to manage all concession stand operations. Under this agreement, Mega Promotions will assume responsibility for staffing, inventory management, and day-to-day operations of the concession stands. In return, PARD will receive a percentage of the revenue generated. This service model reduces City staff time and eliminates expenditures related to purchasing goods and supplies. Beyond resource savings, additional benefits include: • Expanded menu options for patrons. • Enhanced customer service provided by professionals with extensive experience in concession operations. • Increased net revenue for the City through a more efficient and profitable concession model. Request for Proposals was sent to 1,015 prospective suppliers, including 69 Denton firms. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertised in the local newspaper. Five (5) proposals were received, references were checked, and proposals were evaluated based upon published criteria, including background and past experience, sample menu, references, and percentages. Best and Final Offers (BAFO) were requested from the top firm. Based upon City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com this evaluation, Mega Promotions, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 385, 390, 958 and 961 Notifications sent for Solicitation sent in IonWave: 1,015 Number of Suppliers that viewed Solicitation in IonWave: 30 HUB-Historically Underutilized Business Invitations sent out: 148 SBE-Small Business Enterprise Invitations sent out: 414 Responses from Solicitation: 5 RECOMMENDATION Award a contract with Mega Promotions, Inc., for food and beverage concession stand operations at athletic complexes for the Parks and Recreation Department, in a one (1) year, 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. ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION The City of Denton will receive 25% of gross sales from the vendor for tournaments and 15% of gross sales from league nights. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: 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: Leah Bush at 940-349-8333.