Exhibit 1 - Agenda Information Sheet - Amendment 2City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: April 6, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of the second amendment to a contract between the City of Denton and Mega
Promotions, Inc., amending the contract approved by City Council on June 5, 2018, for food and beverage
concession services for the Parks and Recreation Department; said second amendment to extend the term
of the contract to January 5, 2022; and providing an effective date (RFP 6650 – extending a contract with
Mega Promotions, Inc., to January 5, 2022).
INFORMATION/BACKGROUND
On June 5, 2018, City Council approved a food and beverage concessionaire services contract for the Parks
and Recreation Department (PARD) programs for three years. PARD offers various sports tournaments,
leagues, and special events from March-November of each year. In March 2020, COVID-19 impacted and
canceled all PARD in-person programs through September 2020. The cancellation of such events did not
allow Mega Promotions to provide any concessionaire services during this period.
Concession services are needed for the following locations: North Lakes Softball Complex, Denia Softball
Complex, and Vela Sports Complex. These complexes hold various sporting events, such as but are not
limited to youth/adult softball, youth/adult soccer, youth/adult flag football, and adult rugby. Contracting
out these 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 purchasing goods and supplies. PARD will continue to be
responsible for scheduled maintenance and related costs for the concession's required upkeep. There are no
additional expenditures associated with the implementation of an outside service contract. Besides 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.
In extending 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's
temporary/seasonal staff will be able to redirect resources to monitoring league games, providing customer
assistance, and managing incidents/accidents at the softball 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
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On August 24, 2020, the Parks, Recreation, and Beautification Board (PRBB) recommended approval (6-
0) on this item to the City Council for consideration.
On January 17, 2019, Purchasing approved a contract with Mega Promotions, Inc.
On June 5, 2018, City Council approved a contract with Mega Promotions, Inc. (Ordinance 18-604).
RECOMMENDATION
Award Amendment No. 2 with Mega Promotions, Inc., to continue to provide food and beverage concession
services to Parks & Recreation customers, for a contract extension through January 5, 2022.
PRINCIPAL PLACE OF BUSINESS
Mega Promotions, Inc.
Denton, TX
ESTIMATED SCHEDULE OF PROJECT
This contract will expire on January 5, 2022.
FISCAL INFORMATION
In accordance with Amendment 1, the City of Denton will receive 15% of gross sales for weeknight events,
and 25% of gross sales for weekend events. The City will be responsible for maintaining the concession
facility upon request of repairs and will be funded out of the Parks Recreation Fund.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Amendment 1
Exhibit 4: Ordinance and Amendment 2
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Chris Escoto, 940-349-8523.
Legal point of contact: Marcella Lunn at 940-349-8333.