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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ 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.