REQUEST FOR PROPOSALS TITLE: SNACK FOOD VENDING – HEALTHIER CHOICES REFERENCE No.: 1220-30-06-08 V: September 8, 2008 RFP No. 1220-30-06-08 i REQUEST FOR PROPOSALS TABLE OF CONTENTS 1. INTRODUCTION ........................................................................................................................ 01 1.1 Purpose ............................................................................................................................. 01 1.2 Definitions .......................................................................................................................... 01 2. INSTRUCTIONS TO PROPONENTS ........................................................................................ 01 2.1 Closing Time and Address for Proposal Delivery .............................................................. 01 2.2 Information Meeting ........................................................................................................... 02 2.3 Number of Copies .............................................................................................................. 02 2.4 Late Proposals ................................................................................................................... 02 2.5 Amendments to Proposals ................................................................................................ 02 2.6 Inquiries ............................................................................................................................. 02 2.7 Addenda ............................................................................................................................ 03 2.8 Examination of Contract Documents and Site ................................................................... 03 2.9 Opening of Proposals ........................................................................................................ 03 2.10 Status Inquiries .................................................................................................................. 03 3. PROPOSAL SUBMISSION FORM AND CONTENTS .............................................................. 03 3.1 Package ............................................................................................................................. 03 3.2 Form of Proposal ............................................................................................................... 03 3.3 Signature ........................................................................................................................... 04 4. EVALUATION AND SELECTION .............................................................................................. 04 4.1 Evaluation Team ................................................................................................................ 04 4.2 Evaluation Criteria.............................................................................................................. 04 4.3 Discrepancies in Proponent’s Financial Proposal.............................................................. 05 4.4 Litigation............................................................................................................................. 05 4.5 Additional Information ........................................................................................................ 05 4.6 Interviews ........................................................................................................................... 05 4.7 Negotiation of Agreement and Award ................................................................................ 05 5. GENERAL CONDITIONS .......................................................................................................... 06 5.1 No City Obligation .............................................................................................................. 06 5.2 Proponent’s Expenses ....................................................................................................... 06 5.3 No Contract........................................................................................................................ 06 5.4 Conflict of Interest .............................................................................................................. 06 5.5 Solicitation of Council Members and City Staff .................................................................. 06 5.6 Confidentiality .................................................................................................................... 06 SCHEDULE A – SCOPE OF SERVICES ............................................................................................. 07 Schedule - A-1 – Facilities ..................................................................................................................... 18 Schedule - A-2 – Facility Patronage (Visitor Attendance) ..................................................................... 26 Schedule - A-3 – Sales Statistics .......................................................................................................... 28 SCHEDULE B – DRAFT FORM OF AGREEMENT ............................................................................. 32 SCHEDULE C – FORM OF PROPOSAL ............................................................................................. 48 Schedule C-1 - Statement of Departures .............................................................................................. 49 Schedule C-2 - Proponent’s Experience, Reputation and Resources .................................................. 50 Schedule C-3 - Proponent’s Technical Proposal (Services) ................................................................. 51 Schedule C-4 - Proponent’s Financial Proposal.................................................................................... 53 RFO No. 1220-30-06-08 ii REQUEST FOR PROPOSALS 1. INTRODUCTION 1.1 Purpose The purpose of this Request For Proposals [the “RFP”] is to select a service provider (or service providers) for the supply of the goods (if any) and services described in Schedule “A” (the “Goods and Services”). 1.2 Definitions In this RFP the following definitions shall apply: “City” means the City of Surrey; “City Representative” has the meaning set out in section 2.6; “City Website” means www.surrey.ca; “Closing Time” has the meaning set out in section 2.1; “Contract” means a formal written contract between the City and a Preferred Proponent to undertake the Services, the preferred form of which is attached as Schedule B; “Evaluation Team” means the team appointed by the City; "Goods" means the equipment or materials (if any) as described generally in Schedule A; and "G.S.T." means any Goods and Services Tax payable in connection with the goods and services pursuant to the Excise Tax Act of Canada and shall also include any sales, value added or like taxes as well as any capital tax adopted by any lawful authority in addition to or in substitution for the Goods and Services Tax; “Preferred Proponent(s)” means the Proponent(s) selected by the Evaluation Team to enter into negotiations for an Agreement; “Proponent” means an entity that submits a Proposal; “Proposal” means a Proposal submitted in response to this RFP; “RFP” means this Request For Proposals; “Services” means the services as described generally in Schedule “A”, including anything and everything required to be done for the fulfilment and completion of this agreement; and, “Statement of Departures” means Schedule “C-1” to the Form of Proposal attached as Schedule “C”. 2. INSTRUCTIONS TO PROPONENTS 2.1 Closing Time and Address For Proposal Delivery Proposals must be received by the office of: RFP No. 1220-30-06-08 1 Violet McGregor, CMA, C.P.P. Manager, Purchasing & Payments Address: 6645 – 148th Street Surrey, BC V3S 3C7 on or before the following date and time (the “Closing Time”): Time: 3:00, pm local time Date: Tuesday, October 14th, 2008 Submissions by fax [or email] will not be accepted. 2.2 Information Meeting An information meeting may be hosted by the City Representative to discuss the City’s requirements under this RFP (the “Information Meeting”). While attendance is at the discretion of Proponents, Proponents who do not attend will be deemed to have attended the Information Meeting and to have received all of the information given at the Information Meeting. At the time of issuance of this RFP a meeting has not been scheduled. 2.3 Number of Copies Proponents should submit the original plus three (3) copies (four in total) of their Proposals. 2.4 Late Proposals Proposals received after the Closing Time will not be accepted or considered. Delays caused by any delivery, courier or mail service(s) will not be grounds for an extension of the Closing Time. 2.5 Amendments to Proposals Proposals may be revised by written amendment, delivered to the location set out above, at any time before the Closing Time but not after. An amendment must be signed by an authorized signatory of the Proponent in the same manner as provided by section 3.3. Fax amendments are permitted, but such fax may show only the change to the proposal price(s) and in no event disclose the actual proposal price(s). A Proponent bears all risk that the City’s fax equipment functions properly so as to facilitate timely delivery of any fax amendment. 2.6 Inquiries All inquiries related to this RFP should be directed in writing to the person named below (the “City Representative”). Information obtained from any person or source other than the City Representative may not be relied upon. Violet McGregor, CMA, C.P.P. Manager, Purchasing & Payments at Address: 6645 – 148 Street Surrey, BC V3S 3C7 Fax: Phone: Email: 604-599-0956 604-590-7274 purchasing@surrey.ca RFP No. 1220-30-06-08 2 Inquiries should be made no later than 7 days before Closing Time. The City reserves the right not to respond to inquiries made within 7 days of the Closing Time. Inquiries and responses will be recorded and may be distributed to all Proponents at the discretion of the City. Proponents finding discrepancies or omissions in the Contract or RFP, or having doubts as to the meaning or intent of any provision, should immediately notify the City Representative. If the City determines that an amendment is required to this RFP, the City Representative will issue an addendum in accordance with section 2.7. No oral conversation will affect or modify the terms of this RFP or may be relied upon by any Proponent. 2.7 Addenda If the City determines that an amendment is required to this RFP, the City Representative will post a written addendum on the City Website that will form part of this RFP. No amendment of any kind to the RFP is effective unless it is posted in a formal written addendum on the City Website. Upon submitting a Proposal, Proponents will be deemed to have received notice of all addenda that are posted on the City Website. 2.8 Examination of Contract Documents and Site Proponents will be deemed to have carefully examined the RFP, including all attached Schedules, the Contract and the Site (as applicable) prior to preparing and submitting a Proposal with respect to any and all facts, which may influence a Proposal. 2.9 Opening of Proposals The City intends to open Proposals in private but reserves the right to open Proposals in public at its sole discretion. 2.10 Status Inquiries All inquiries related to the status of this RFP, including whether or not a Contract has been awarded, should be directed to the City Website and not to the City Representative. 3. PROPOSAL SUBMISSION FORM AND CONTENTS 3.1 Package Proposals should be in a sealed package, marked on the outside with the Proponent's name, title of the Project and reference number. 3.2 Form of Proposal Proponents should complete the form of Proposal attached as Schedule C, including Schedules C-1 to C-4. Proponents are encouraged to respond to the items listed in Schedules C-1 to C-4 in the order listed. Proponents are encouraged to use the forms provided and attach additional pages as necessary. RFP No. 1220-30-06-08 3 3.3 Signature The legal name of the person or firm submitting the Proposal should be inserted in Schedule C. The Proposal should be signed by a person authorized to sign on behalf of the Proponent. (a) (b) (c) If the Proponent is a corporation then the full name of the corporation should be included, together with the names of authorized signatories. The Proposal should be executed by all of the authorized signatories or by one or more of them provided that a copy of the corporate resolution authorizing those persons to execute the Proposal on behalf of the corporation is submitted; If the Proponent is a partnership or joint venture then the name of the partnership or joint venture and the name of each partner or joint venturer should be included, and each partner or joint venturer should sign personally (or, if one or more person(s) have signing authority for the partnership or joint venture, the partnership or joint venture should provide evidence to the satisfaction of the City that the person(s) signing have signing authority for the partnership or joint venture). If a partner or joint venturer is a corporation then such corporation should sign as indicated in subsection (a) above; or If the Proponent is an individual, including a sole proprietorship, the name of the individual should be included. 4. EVALUATION AND SELECTION 4.1 Evaluation Team The Evaluation Team will undertake the evaluation of Proposals on behalf of the City. The Evaluation Team may consult with others including City staff members, third party Contractors and references, as the Evaluation Team may in its discretion decide is required. The Evaluation Team will give a written recommendation for the selection of a Preferred Proponent or Preferred Proponents to the City. 4.2 Evaluation Criteria The Evaluation Team will compare and evaluate all Proposals to determine the Proponent's strength and ability to provide the Services in order to determine the Proposal which is most advantageous to the City, using the following criteria: (a) (b) (c) Technical The Evaluation Team will consider the Proponents responses to all items in Schedule C-2 and Schedule C-3, including supplemental materials. Financial The Evaluation Team will consider the Proponents responses to all items in Schedule C-4. Statement of Departures The Evaluation Team will consider the Proponent's response to Schedule C-1. The Evaluation Team will not be limited to the criteria referred to above, and the Evaluation Team may consider other criteria that the team identifies as relevant during the evaluation process. The Evaluation Team may apply the evaluation criteria on a comparative basis, evaluating the Proposals by comparing one Proponent's Proposal to another Proponent's Proposal. All criteria considered will be applied evenly and fairly to all Proposals. RFP No. 1220-30-06-08 4 4.3 Discrepancies in Proponent's Financial Proposal If there are any obvious discrepancies, errors or omissions in Schedule C-4 of a Proposal (Proponent's Financial Proposal), then the City shall be entitled to make obvious corrections, but only if, and to the extent, the corrections are apparent from the Proposal as submitted, and in particular: (a) (b) (c) 4.4 if there is a discrepancy between a unit price and the extended total, then the unit prices shall be deemed to be correct, and corresponding corrections will be made to the extended totals; if a unit price has been given but the corresponding extended total has been omitted, then the extended total will be calculated from the unit price and the estimated quantity; if an extended total has been given but the corresponding unit price has been omitted, then the unit price will be calculated from the extended total and the estimated quantity. Litigation In addition to any other provision of this RFP, the City may, in its absolute discretion, reject a Proposal if the Proponent, or any officer or director of the Proponent submitting the Proposal, is or has been engaged directly or indirectly in a legal action against the City, its elected or appointed officers, representatives or employees in relation to any matter. In determining whether or not to reject a Proposal under this section, the City will consider whether the litigation is likely to affect the Proponent’s ability to work with the City, its Contractors and representatives and whether the City’s experience with the Proponent indicates that there is a risk the City will incur increased staff and legal costs in the administration of the Agreement if it is awarded to the Proponent. 4.5 Additional Information The Evaluation Team may, at its discretion, request clarifications or additional information from a Proponent with respect to any Proposal, and the Evaluation Team may make such requests to only selected Proponents. The Evaluation Team may consider such clarifications or additional information in evaluating a Proposal. 4.6 Interviews The Evaluation Team may, at its discretion, invite some or all of the Proponents to appear before the Evaluation Team to provide clarifications of their Proposals. In such event, the Evaluation Team will be entitled to consider the answers received in evaluating Proposals. 4.7 Negotiation of Agreement and Award If the City selects a Preferred Proponent or Preferred Proponents, then it may: (a) (b) (c) enter into a Contract with the Preferred Proponent(s); or enter into discussions with the Preferred Proponent(s) to clarify any outstanding issues and attempt to finalize the terms of the Contract(s), including financial terms. If discussions are successful, the City and the Preferred Proponent(s) will finalize the Contract(s); or if at any time the City reasonably forms the opinion that a mutually acceptable agreement is not likely to be reached within a reasonable time, give the Preferred Proponent(s) written notice to terminate discussions, in which event RFP No. 1220-30-06-08 5 the City may then either open discussions with another Proponent or terminate this RFP and retain or obtain the Services in some other manner. 5. GENERAL CONDITIONS 5.1 No City Obligation This RFP is not a tender and does not commit the City in any way to select a Preferred Proponent, or to proceed to negotiations for an Agreement, or to award any Agreement, and the City reserves the complete right to at any time reject all Proposals, and to terminate this RFP process. 5.2 Proponent’s Expenses Proponents are solely responsible for their own expenses in preparing, and submitting Proposals, and for any meetings, negotiations or discussions with the City or its representatives and Contractors, relating to or arising from this RFP. The City and its representatives, agents, Contractors and advisors will not be liable to any Proponent for any claims, whether for costs, expenses, losses or damages, or loss of anticipated profits, or for any other matter whatsoever, incurred by the Proponent in preparing and submitting a Proposal, or participating in negotiations for an Agreement, or other activity related to or arising out of this RFP. 5.3 No Contract By submitting a Proposal and participating in the process as outlined in this RFP, Proponents expressly agree that no contract of any kind is formed under, or arises from, this RFP, prior to the signing of a formal written Contract. 5.4 Conflict of Interest A Proponent shall disclose in its Proposal any actual or potential conflicts of interest and existing business relationships it may have with the City, its elected or appointed officials or employees. The City may rely on such disclosure. 5.5 Solicitation of Council Members and City Staff Proponents and their agents will not contact any member of the City Council or City staff with respect to this RFP, other than the City Representative named in section 2.6, at any time prior to the award of a contract or the termination of this RFP. 5.6 Confidentiality All submissions become the property of the City and will not be returned to the Proponent. The City will hold all submissions in confidence unless otherwise required by law. Proponents should be aware the City is a “public body” defined by and subject to the Freedom of Information and Protection of Privacy Act of British Columbia. RFP No. 1220-30-06-08 6 SCHEDULE A SCOPE OF SERVICES SNACK FOOD VENDING – HEALTHIER CHOICES REFERENCE No.: 1220-30-06-08 RFP No. 1220-30-06-08 7 SCHEDULE A SCOPE OF SERVICES 1. OBJECTIVES In the interest of ensuring a positive experience for all of our facility patrons including employees, the City wishes to implement a snack food and beverage vending services program for its City facilities that provides: (a) choices that will more closely align over time, with the recommendations of the “Nutritional Guidelines for Vending Machines in B.C. Public Buildings” as prepared by the Ministry of Labour and Citizens’ Services and the Ministry of Health, dated May, 2007, as revised; (b) a range of choices of healthier snack food vending items and a focus on serving the needs of a variety of visitors [widely and predominantly available]; (c) a product offering that includes milk as well as contemporary and nutritious items which are client focused; (d) strategic placement of machines to minimize any negative impact on sales; (e) competitive pricing that is affordable and competitive to market pricing; (f) strategic pricing to encourage sales of healthy choices; (g) a pleasing product presentation that displays healthiest options at eye-level; and, (h) advertising display signage on vending machines which reflects healthier choices, including connecting sports and academic excellence with healthy eating. The City’s goal is to provide its patrons and employees throughout all venues a variety of “Choose Most” and “Choose Sometimes” snack food products that are creative, value for money and of the highest possible quality. Snack food vending machines will have at least 50% of “Choose Most” and “Choose Sometimes” items and 50% “Choose Least” and “Not Recommended” items. Vending machines will offer no more than 15% of items from the “Not Recommended” category. The City will pilot two locations that will offer 75% of items from the “Choose Most” and “Choose Sometimes” categories and 25% “Choose Least” and “Not Recommended” items. In these facilities, “Not Recommended” items will be limited to 10%. It is the City’s goal to transition all facilities in the next three years to 75% of items from the “Choose Most” and “Choose Sometimes” categories and 25% “Choose Least” and “Not Recommended” items with “Not Recommended” items limited to 10%. It is extremely important for the Contractor to work collaboratively with the City’s snack food and beverage vending team and with its facility manager’s during all phases of the work. Cooperative planning is the key to the success of any snack food-vending program. It is expected that the Contractor will interact with many of the City facilities functions. 2. PRINCIPLES The Principles by which the City’s snack food and beverage vending program will function and operate on are: (a) (b) (c) Efficiency in Service – the Contractor will deliver personalized and consistent service in an efficient and friendly manner; Timely Services – the Contractor will provide services that meets and exceeds the City’s expectations [quality goods, products, services and programs that provide value for money]; Innovation – the Contractor is to provide services that interact with the facility programs [e.g. fitness activity promotions]; RFP No. 1220-30-06-08 8 Sustainability – the Contractor is to strive to meet industry established benchmarks on reduction of waste including recycling, and packaging; (e) Variety and Quality – the Contractor is to provide a mix of snack food products, all of which conform to Nutritional Guidelines for vending machines in B.C. Public Buildings; (f) Consistency – Consistency of product quality and service throughout all facility locations, including ensuring that the labeling system correctly identifies health choices at all times; and, (g) Safety and Sanitation – the Contractor is to ensure that all food and beverages, food handling practices sourced and dispensed including equipment maintenance comply absolutely with food safety standards. The Contractor will work closely with the City’s snack food and beverage vending team to develop a snack food-vending program that exceeds the City’s expectations. (d) To this end, the City retains the right to determine the nature of, and to make adjustments to, the snack food and beverage vending operation including product lines and retail pricing strategies. The City envisions that changing employee and client choices will not necessarily result in major reductions to snack food vending. 3. SCOPE OF SERVICES (REQUIREMENTS) Although the baseline information provided by the City in this section is important for the Proponent to take into account, the RFP emphasizes that the City is seeking “creative changes from the current operations” not business as usual. The general elements across all City facilities that the Contractor will be required are: (a) Coordinate and prepare, a preliminary snack food and beverage vending program that represents the unique needs of the City [fitness and wellness] for presentation to the City’s snack food and beverage vending team and its stakeholders; (b) Identify all key stakeholder facilities; (c) Develop strategic snack food and beverage vending operational plans, policies and procedures providing a strategic volume driven sales approach for each facility; (d) Initiate field work including delivery, electrical and plumbing investigations; (e) Develop a master installation schedule; (e) Maintain written and photographic records of installation; (f) Establish the methods, procedures and lines of communication required to control the project, including responsibility for all planning [goods, services and equipment] and quality assurance; (g) Develop administration procedures for the project; (h) Deliver continuous and scheduled facility services in a cooperative, courteous, efficient and professional manner; (i) Institute an auditing system that encompasses all sales; (j) Provide liaison and coordination with City facilities; (k) Deliver the snack food-vending program that is of the highest quality (deliver clean and sanitary equipment and services to all vended facilities, and ensure adherence to all Food Safe handing requirements); (l) Meet with the City’s snack food and beverage vending team and it’s stakeholders, at the direction of the City’s snack food and beverage vending team, to review and update the functional program for each facility, including compliance with reporting requirements; and, (m) Contractor shall at all times keep the City free and clear from all liens asserted by any person, firm or corporation for any reason whatsoever, arising from the furnishing of services, (whether for services, work, or labour performed, or RFP No. 1220-30-06-08 9 materials and equipment furnished) by the Contractor pursuant to the terms of the agreement. 4. SUPPLIER STRATEGIC SALES APPROACH (ALL CHANNELS) (a) 5. Category Brand Management. A full complement of brands, packaging and pricing will be maintained and optimized. This will accommodate all visitors, staff and community groups in finding their products of preference; (b) Consumer Appeal. The vending machine provider will provide their valuable expertise in enhancing “consumer appeal” through the design of custom fascias for vendors and executing volume driven consumer related promotions; and, (c) Increased Margins. Up sizing” (where available/practicable), the packaging due to marketplace shifts will show immediate growth in volume to be realized at all City locations. VENDING REVIEW (CITY WIDE) City locations are currently being serviced on a month-to-month basis. The City will terminate this arrangement once an award is made. The current vendor (if unsuccessful) will be given sixty (60) days notice to remove equipment. The Contractor will manage all snack food and beverage vending machines throughout the City’s owned and controlled facilities identified in Schedule A-1. Schedule A-2 provides facility patronage (visitor attendance) figures for years 2006 to 2007, inclusive. Schedule A-3 provides year 2003 to year 2007 product category sales per facility. 6. SCOPE OF SERVICES [the “Opportunity”] The City is offering a long term relationship opportunity with an option to renew, to provide, install, operate and service automatic coin operated vending equipment and related equipment and materials for the provision and dispensing of quality hot/cold food, food products, frozen dairy products, confectionery products and non-alcoholic hot/cold refreshments (excluding carbonated, non-carbonated, juice, packaged water, isotonic and alternate beverages) and miscellaneous dry goods products. The agreement includes all existing and future City operated and controlled facilities. Non-profitable machines must be left in place for convenience. Removal of nonprofitable machines will only be allowed after the City gives prior written approval. 7. FULL SERVICE VENDING (a) Machines. The Contractor agrees to provide a full range of hot and cold floor standing snack food, and confectionary vending machines including hot and cold beverages (see section 7(g) for excluded products). Vending machines shall provide style and flexibility to the vending service. Vending machines are to have large windows and double illumination to ensure excellent product visibility and a low graphics panel that contributes further to the aesthetics of this machine. Security features as standard include; anti-vandal keypad, reinforced anti-pry door surround and three point door locking. Hot beverage vending machines: (a) (b) (c) RFP No. 1220-30-06-08 Instant (hot only, hot & cold, hot and cold carbonated models); Single fresh brew (hot only, hot and cold, hot and cold carbonated models); Bean to cup (hot only, hot and cold, hot and cold carbonated models); and, 10 (d) Bean to cup and fresh brew (hot only, hot and cold, hot and cold carbonated models). It provides a wide menu choice including authentic continental bean to cup coffees, regular and decaf instant coffee options, freshbrew tea, chocolate and soup, and up to two chilled still or sparkling flavoured drinks. Adjustable strength, whitener and sugar levels, coupled with the option for consumers to use their own cup or mug, ensure this machine produces drinks to suit every preference. A UV, Brita filter kit, and hot water hose for simpler routine cleaning are to be installed. This machine also uses a system specifically designed to enable graphics to be changed when needed. This maximizes the visual appeal and impulse sales of the machine throughout its operating life. An Espresso Café machine is in a unique position in the beverage vending market. Machine has separate dispense areas for its high quality hot drinks (such as continental style 'bean to cup' coffees), and chilled, UV filtered water. It also provides a number of exceptional features; including a syrup kit for flavoured coffee, chocolate sprinkler for cappuccino and chocolate drinks, and the option for flavoured water. Compatible with a range of cash and cashless payment options this machine is suitable for a variety of high volume sites. As a minimum the following general equipment requirements, materials, labour, products & services covering the designated locations as listed in Schedule A-1 for all present and future City controlled locations as may from time to time be added to these schedules at no cost (on loan) including but not limited to delivery, installation, setup, testing, adjustments, and secured locking systems. The City will not be responsible for the value of wear and tear and depreciation of all equipment. Vend equipment is to be: (i) (ii) (iii) (iv) RFP No. 1220-30-06-08 modern, of the latest mechanical/electronic technology and be in new or near new condition; uniform in size (where practicable) with a coordinated appearance (illuminated vending fronts) and banked (groupings of 3 or more); quiet and non-disruptive to the activities occurring in City facilities, and shall be aesthetically acceptable to the City; ENERGY STAR compliant and meets the ENERGY STAR specifications for energy efficiency. Low Power Mode: In addition to meeting the 24-hour energy consumption requirements listed above, qualifying models shall come equipped with hard wired controls and/or software capable of automatically placing the machine into a low power mode during periods of extended inactivity while still connected to its power source to facilitate the saving of additional energy, where appropriate. The machine shall be capable of operating in each of the low power mode described below: (a) Lighting low power state – lights off for an extended period of time; and, (b) Whole machine low power state – the lights are off and the refrigeration operates in its low power state. Refrigeration low power state – the average beverage temperature is allowed to rise above 40°F for an extended period of time is not acceptable. In addition, the machine shall be capable of automatically returning itself back to its normal operating conditions at the conclusion of the inactivity 11 period. The low power mode-related controls/software shall be capable of on-site adjustments by the vending operator or machine owner. N.B. Machines that dispense vending temperature sensitive product, such as milk, must not have the refrigeration low power state enabled due to the risk of product spoilage. In addition, the utilization of passive infrared sensors (PIR) are acceptable provided they are mounted on each machine or ganged and; (c) automatically repower the vending machine at timed intervals to ensure vended product stays cold (1 to 3 hours max.); (d) PIR is not to power down while the compressor is running; and (e) When vending machine is powered up, the cooling cycle is to run until completion before powering down. Non-cooled product machines can be controlled by PIR’s to reduce energy costs When vending machine is in low power state visitors must not think that the machine is not functioning. (v) of adequate size and capacity to maintain full and uninterrupted service at all times. The machines will vend either recyclable plastic bottles or recyclable cans, glass containers are not acceptable; (vi) equipped to accept legal tender, be equipped with paper bill validators and payment mechanisms which will accept combinations of new coin loonies and toonies, nickels, dimes and quarters. In addition, each machine must have bill change capabilities; (vii) equipped with non-resettable counters, which indicate unit sales. If multiple products are dispensed from the same machine, a separate dispensing counter is required for each separate commission rate dispensed. Upon initial installation of the machines. The Contractor shall submit starting machine counter numbers to the City for each vending machine; and, (viii) ensure that the labeling system correctly identifies health choices at all times. (ix) all vending machines must have adjustable anti-tilt brackets installed as a preventative course of action. All machines shall show the Contractor’s name, a local service telephone number for reporting of machine malfunctions, the person or office within the Contractor’s organization responsible for refunds, and regular days of the week for re-stocking of the machines. In addition, for identification purposes, each machine shall have an I.D. number(s) that are visible and easily located. The machines will be operated by the Contractor in such a way as to fully comply with all federal, provincial and municipal laws, as well as City policies. Should any federal, provincial or city by-laws, regulations or policy change during the life of the agreement, the Contractor will be expected to comply with these changes. All equipment must operate on AC-110-120 volts and be U/L listed and CSA approved. At least once during each contract year during the term, the Contractor and the City will jointly conduct an equipment review/audit for the sole purpose of determining equipment upgrades and/or opportunities. RFP No. 1220-30-06-08 12 The Contractor will be solely responsible for all expenses (direct and indirect) including initial front end costs, recurring annual costs, incremental costs, installation costs, and all costs associated with equipment upgrades, relocations, removals and expansions and any subsequent negotiations. (b) Locations. Site viability is at the discretion of the City. The City will work with the Contractor to designate optimum placement of machines. Machines shall be located within or about the specified building at the direction of the supervisor in charge of the facility. The City makes no representation regarding availability of any location or of the number of machines that may be placed at any location, and may occasionally direct that machines be removed from selected locations. The City will retain the sole right to add or delete vending equipment as the need arises as determined by the City. The City reserves the right at any time to require the Contractor to remove, relocate, or place additional vending machines and related equipment at existing and/or new locations to meet new or unanticipated requirements that might become known during the term of the agreement. Should the Contractor wish to relocate, exchange, or remove vending machines, a request must be submitted in writing to the City. (c) Utilities. Suitable water service, electricity, drainage, lighting, and heating of designated premises will be provided, but without liability on the City's part arising from temporary interruption thereof on account of breakdown, power failure or like causes. In the event any utility service must be interrupted for repair or modification, the City will provide the Contractor with as much advance notice as possible. In the event of any such interruption or any disruption of utility services, the City shall take reasonable steps to restore them promptly but shall not be responsible for any loss or delay sustained by the Contractor resulting from such interruptions from any cause. (d) (e) (f) Additions/Deletions of Equipment/Accessories. Equipment introduced by the Contractor after the agreement is executed and which is intended to replace any equipment then on the premises of the City facilities is subject to the same commission percentages, rebates and other terms set out in this agreement. Delivery and installation of replacement equipment shall be at no cost to the City Equipment Damage. The Contractor will assume all risk and responsibility for any loss, destruction, or damage occurring to the snack food and beverage vending machines or other vending equipment. In the event of any loss due to theft, fire, accident disruption of utility services, vandalism, spoilage or other similar causes from said machines, the loss shall be borne solely by the Contractor. Machines provided shall be equipped with anti-theft technology. Full Service and Maintenance of Machines. The Contractor agrees, to provide, all maintenance (scheduled/non-scheduled) and remedial service for all Contractor supplied equipment used to dispense snack food and beverages of the Contractor at no cost to the City for parts, labour, tools, equipment/truck(s), mileage, etc. All scheduled service and maintenance is to be provided in accordance with the manufacturer’s recommendations and guidelines. The Contractor will respond to all equipment service calls with a maximum response time of six (6) hours from the placement of the first telephone request for service made by the City. The Contractor is required to call the City’s facility RFP No. 1220-30-06-08 13 manager within 60 minutes of receiving the initial service call to establish an estimated time of arrival (ETA) of the technician. This response time average will be maintained between the regular service hours of 8:30 and 17:00, Monday through Friday, 52 weeks of the year (except for national and provincial holidays). The Contractor shall be responsible for the physical inventory, inventory control, and filling of machines. The Contractor is to make every effort to restock machines at times that will not conflict with peak usage times. Product delivery shall be made on a mutually agreed upon schedule at each location. No inventories will be maintained at any City facility. The Contractor shall take it upon itself to be alerted as to special events that may require frequent reservicing of machines. The Contractor shall have the ability to receive service calls and provide service support after hours and on weekends. If, within 24 hours of the initial service call, the Contractor is not able to repair any item of equipment that is not functioning properly, the Contractor will put in place a suitable temporary replacement without any additional cost to the City within a commercially reasonable period of time thereafter and a permanent replacement which shall be a new model of like or superior specifications, without any additional cost to the City, within 10 business days. The replacement or upgrade of equipment that continuously malfunctions or exhibits excessive downtime may be made upon mutual agreement. Trained, qualified personnel identified by a clearly marked and openly displayed company insignia and/or uniform will perform all service. In addition, all such persons shall carry company issued photo identification and shall present such documents to anyone on request. The Contractor shall keep the machines in a clean and sanitary condition. This requirement includes interiors, exteriors, tops, and the areas under the machines. The exterior construction of the vending machine shall be such as to facilitate cleaning and to minimize the entrance of insects and rodents, and the exterior of the machine shall be kept clean. Service connections shall be such as to protect against unintentional or accidental interruption of service to the machine. All interior surface and component parts of the vending machine shall be so designed and constructed as to permit easy cleaning, and shall be kept clean. All product contact surfaces of the machine shall be of smooth, nontoxic, corrosion resistant, and relatively nonabsorbent material, and shall be capable of withstanding repeated cleaning and sanitizing treatment by normal procedures. Such surfaces shall be protected against contamination. (g) Products to be Dispensed. The City desires a wide variety of snack food vending choices that will more closely align over time, with the recommendations of the “Nutritional Guidelines for Vending Machines in B.C. Public Buildings” as prepared by the Ministry of Labour and Citizens’ Services and the Ministry of Health, dated May, 2007, as revised. Increased choices of healthier snack food vending items and a focus on serving the needs of a variety of visitors. Product offering that includes milk as well as contemporary and nutritious items, which are client, focused. RFP No. 1220-30-06-08 14 Products that constitute a large market share of national sales are to be used in the vending operation. During the term of the contract, products vended may be changed with mutual agreement of the Contractor and the City. Specifically excluded from this RFP are Cold Drink Beverages. For the purpose of this section 7(g), “Cold Drink Beverages” is defined as all major branded non-alcoholic carbonated and non-carbonated beverages natural or artificially-flavoured non-alcoholic beverages, whether consumed independently or used as a mixer or otherwise, including but not limited to, nonalcoholic beverages with nutritive or non-nutritive sweeteners; natural or artificially flavoured non-alcoholic fruit and/or vegetable juices (sweetened or unsweetened); fruit and/or vegetable juice containing drinks; fruit and/or vegetable punches and ades; hypertonic, hypotonic and isotonic energy and fluid replacement drinks (sometimes referred to as "sports drinks"); frozen carbonated beverages; packaged flavoured and/or unflavoured, sweetened or unsweetened, carbonated and non- carbonated waters, ice teas; and all cold drink or beverage bases, whether in the form of syrups, powders, crystals, concentrates or otherwise, from which such drinks and beverages. “Cold Drink Beverage” does not include milk, flavoured milk, branded or unbranded fresh brewed coffee or tea, unbranded fresh squeezed juices, unbranded drinks such as smoothies, punches, shakes, nutritional supplement drinks and other similar beverages. Snacks, health food snacks and hot drink beverages that will be dispensed shall be determined by what is proven to result in the highest sales at a particular location based on actual and projected customer demand, while adhering to specific percentages of healthy items as indicated above. Once the City has approved the initial product line offered, the Contractor will be allowed to add or delete products with prior written approval from the City. The City reserves the right to request that a product be replaced at any time. Healthy choice products are to be from the “Choose Most” and “Choose Sometimes” categories. The “Choose Most” and “Choose Sometimes” categories must be identified with the approved Ministry check mark system as described in the Guidelines for Food and Beverage Sales in BC Schools dated September, 2007. The checkmark system must be used to promote healthier choices on the machines i.e., double check mark for “Choose Most” and single check mark for “Choose Sometimes”. Each machine must display a legend describing what the symbols represent. Ministry of Education and the Ministry of Health Check Mark System Labels (as contained in the “Guidelines for Food and Beverage Sales in BC Schools” prepared September 2007) The Checkmark System In an effort to assist students in making informed choices about nutrition, the report recommends schools and school districts implement a checkmark system at the point of sale, such as on the front of vending machines’ slots or on food menu boards. Checkmarks are universal symbols of excellence. In the…food context, checkmarks may be interpreted by students as identifying choices for their learning and health. For example: ”Choose Most” foods may be symbolized by two checkmarks. RFP No. 1220-30-06-08 15 ”Choose Sometimes” foods by one checkmark. The checkmarks can be used to draw a [patron’s] attention to healthier choices. If these symbols are used, it is important that they are used correctly. “Choose Least” and “Not Recommended” items sold in the school setting…should not be identified with any checkmark 1 Choose Most Such as whole grain breads and fresh vegetables, which tend to be the highest in nutrients, the lowest in unhealthy components, and the least processed. 2 Choose Sometimes Such as fruit canned in light syrup, which represents choices that are moderately salted, sweetened or processed. 3 Choose Least Such as fries which tend to be low in key nutrients such as iron and calcium and highly salted, sweetened or processed. 4 Not Recommended Such as candies where sugar is the first ingredient, tend to be highly processed, or have a very high amounts of sweeteners, salt, fat, trans fat or calories relative to their nutritional value. The City’s goal is to maximize access to “Choose Most” and “Choose Sometimes” options, minimize access to “Choose Least” and “Not Recommended” items. The Contractor and the City shall work together to determine a time schedule for introduction of “Choose Most” and “Choose Sometimes” options. All foods (including potentially hazardous food or drinks, e.g custard-fill and cream-filled pastries, milk and milk products, etc), beverages and ingredients offered for sale through vending machines must comply with all federal, provincial and city regulations governing the procurement, preparation, storage, transport, handling and serving of all items for consumption. In addition, the Contractor will keep in effect all necessary licenses and permits required by law and agrees to post such permits in a prominent place as may be required by law. All foods, beverages and ingredients offered for sale through vending machines shall be wholesome and free from spoilage, contamination and adulteration. Potentially hazardous foods shall be removed from the vending machine and discarded. Milk and fluid milk products offered for sale through vending machines shall be dispensed only in individual, original containers in which such product was placed at the milk plant; provided, in the case of vending machines that use fluid milk products as an ingredient in hot liquid foods or beverages, such milk product may be transferred at the machine location provided it is done so in a clean and sanitary manner. (h) Product Sizes. The specific products and the size of the products that will be sold from a specific machine will be determined by the Contractor based on the appropriateness of the product, location of the machine and sales projections. (i) Graphics. Attractive high visibility graphics showing the offering of healthy alternatives. Graphics may not vary to those shown. The City may reject machine signage or logo if deemed objectionable or a distraction to the activities occurring in the vicinity. RFP No. 1220-30-06-08 16 8. PRICING (a) Negotiation. Unit selling pricing of products shall be mutually agreed upon during the negotiation of the final terms and conditions of the Agreement. Pricing will remain firm until December 31st, 2010. Any adjustments following this date in unit prices will be negotiated between the City and the Contractor. Local market conditions, City commissions, Contractor’s product costs, and gross profit margins will be utilized to establish the exact amounts of any price adjustment(s). (b) Price Structure. The Contractor will provide unit prices for the items/services listed. The prices at which the Contractor shall offer such items for sale shall be fair and competitive with the prices at which similar items are sold in the vicinity of the City facility. The vending prices at all facilities covered by the agreement shall not exceed normal retail pricing. The Contractor is to: (i) (ii) (iii) 9. offer competitive pricing affordable to facility patrons and employees; offer strategic pricing to encourage sales of healthy choices, choose most and choose sometimes items are to be priced lower than choose least items; and, integrate retail selling prices with City operated concessions. ADVERTISING It is the City’s goal to maximize the revenue potential associated with the vending service agreement without commercially compromising its goals of service to the community and responsiveness to the public’s needs and values. Any signage, logo, promotions product, or anything that the City may construe as advertising must be approved by the City’s snack food and beverage vending team before distribution or placement on vending machines, on City property. 10. REFUNDS The Contractor shall supply a float of $25-$30 for each facility to reimburse consumers if a piece of the Contractor’s vend equipment malfunctions and does not vend a snack food or beverage when the appropriate amount of coinage is properly inserted into the machine. The Contractor shall also provide refund slips [quick and easy to complete] to each facility to be completed by consumers claiming a refund. The Contractor’s regular delivery driver will replenish the float as needed. 11. TERM The Contractor will provide the Goods and Services set out in Schedule A for a period of five (5) years. The parties may extend the Term by mutual agreement. If the Term is extended, the provisions of this agreement will remain in force except where amended in writing by the parties. RFP No. 1220-30-06-08 17 SCHEDULE A-1 FACILITIES SNACK FOOD VENDING – HEALTHIER CHOICES REFERENCE No.: 1220-30-06-08 RFP No. 1220-30-06-08 18 SCHEDULE A-1 FACILITIES Currently, the majority of the City of Surrey’s facilities are operating fifty-two (52) weeks per year, seven days per week. COMMUNITY AND LEISURE SERVICES DIVISION CLOVERDALE ARENA 6090 – 176th Street The Cloverdale Arena is located in the historic town of Cloverdale. It is northwest of Fraser Downs Raceway and south of the new Millennium Amphitheatre. This facility is located on 176th Street, with easy access from the Canada/US border to the South and the Trans Canada Hwy to the North. Features: 15,000 sq. ft of exhibit space Bench seating for 250 Score board with flexible scoring and timing capabilities 1 meeting room 4 multi-use dressing rooms Wheel chair accessible on ground level Food services available 31' high ceiling Parking stalls for 155 CLOVERDALE RECREATION CENTRE 6220 – 184th Street Recreation Programs Hall Rentals CLOVERDALE SENIORS’ CENTRE 6022 – 176th Street Various recreational activities & classes, special events and dances Social Activities The Cloverdale Seniors' Centre is a one level, fully accessible facility. The Centre has multipurpose rooms, computer lab, drop in lounge, auditorium and kitchen. The Centre operates 12 months of the year from 9:00am-4:00pm, Monday through Friday and provides numerous activities for the 55+ individual seeking recreation and fellowship. CLOVERDALE YOUTH CENTRE 6228 – 184th Street Various drop-in special events and programs Special Events Sand Volleyball court and sports box Cloverdale Youth Services has a drop-in schedule, a number of events such as preteen dances, new late night programming, birthday party opportunities and is overseen by a Youth Committee. RFP No. 1220-30-06-08 19 FLEETWOOD COMMUNITY RECREATION CENTRE [INCLUDING YOUTH LOUNGE] 15996 – 84th Avenue Various recreational & social activities/classes Hall Rentals Special Events Fitness Centre FRASER HEIGHTS RECREATION CENTRE (INCLUDING YOUTH CENTRE) 10588 – 160th Street Children & Youth programs, birthday parties, and daycamps Adults and Seniors programs Sport and Fitness, fitness gyms, leagues Located at the entrance to the Fraser Heights neighbourhood, the centre offers a wide variety of recreational programs, activities and events for all ages, cultures and fitness levels. Situated next to the Youth Park, outdoor basketball court and sports field. The centre is a natural dropin location for all community members. GUILDFORD COMMUNITY (PLANET YOUTH) 15105 – 105th Avenue RECREATION CENTRE (INCLUDING YOUTH LOUNGE 3 Tournament Gymnasiums Weight room, Fitness and Track Seniors, Youth and Pre-school Rooms The youth lounge was designed by the "Planet Youth" Committee and features a state of the art sound system, TV's, 1 pool table, 1 air hockey table, table soccer, and ping-pong, X box and board games. NEWTON ARENA 7120 – 136B Street Ice Hockey, Figure Skating, Public Skating & Lessons Special Events Hall Rentals Concession Services The Newton Arena was built in 1973 and is conveniently located across from the Newton Wave Pool and adjacent to the Community Centre. It is centrally located in Surrey with a number of Hotels within minutes away. Features: 17,000 sq.ft of exhibit space Bench seating for 150 Score board with flexible scoring and timing capabilities 1 Meeting room 2 Multipurpose rooms 4 Multi-use dressing rooms Wheel chair accessible on ground level Skate Shop RFP No. 1220-30-06-08 20 NEWTON COMMUNITY RECREATION CENTRE 7120 – 136B Street Various recreational & social activities/classes Hall Rentals Special Events Newton Community and Leisure Services has a variety of programs and services for people of all ages and abilities. NEWTON SENIORS’ CENTRE 13775 – 70th Avenue Various recreational & social activities/classes, special events and dances Special Events Newton Seniors' Centre is dedicated to the theory that "Good health doesn't cost it pays" and as such is encouraging and providing healthy activities geared towards the older adults within our community The Newton Seniors' Centre is a recreational facility with great programs, activities, clubs and social opportunities for Seniors' 55+ years. We offer fitness and dance programs such as Yoga Stretch, Osteofit 4 Life, Arthritis Joint Works, Fitness Lite 55+, Tai Chi, Self Defense, Feldenkrais, Hawaiian Dancing and Line Dancing. We also provide programs for the budding artists such as Watercolours, Acrylics, Decorative Painting, and various crafts. Bus trips, special interest programs such as Writing Your Own Memoirs, Health and Wellness Talks, and other events are always being scheduled, so check the latest newsletter for details. NEWTON WAVE POOL 13730 – 72nd Avenue Wave action leisure pool Swimming Lessons, Public Swim, Fitness Centre Special Events Rentals Steam room, whirlpool, 2 waterslides The Newton Wave Pool offers a wealth of fun and excitement for swimmers of all ages! Our public swims are crammed full of great fun, wild activities, and prizes for the youngsters: Pirates' Water Fortress equipped with blasters, hoses, slides and more! New enclosed 63 metre long water slide New open 67 metre long water slide Water fortress with cannons, jets, slides & more Huge hot tub Deck games; giant checkers, chess, & snakes & ladders, table tennis Games and prizes every day! The Biggest Waves in the West! Our Learn-to-Swim Program offers a class for everyone! convenient times make for a great learning experience! Experienced instructors and Adults can soak in the Hot Tub, relax in the Steam Room, or work out in our fully equipped fitness facility. Join in an Aquacize class to limber up or try out our Adult Swim Lessons to improve your strokes. RFP No. 1220-30-06-08 21 NEWTON YOUTH CENTRE 13355 – 68th Avenue Various drop in special events and programs Special Events Check out Newton’s New and Improved Youth Drop-In Centre! Our trained youth workers provide a safe and fun environment for youth ages 12 to 18. We do everything from sports, crafts, and games in our new coffee lounge setting. Bring your friends down to play pool, foosball, and x-box or watch a movie on our big screen TV. We also have a computer room if you need to do some research, do some homework or if you want to surf the net at our internet café. We also offer the popular Dance, Dance Revolution game, a lit outdoor sports box and a variety of sports equipment. NORTH SURREY RECREATION CENTRE 10275– 135th Street Includes 2 sheet ice arena 37 meter pool with saunas, whirlpool, children’s pool and fitness centre Special Events Rentals Concession Services Ice Hockey, Public Skating & Lessons, Figure Skating In Summer - Lacrosse, In-Line Skating, Ball Hockey Swimming Lessons, Public Swim, Courses Fitness Centre Tournaments & Meets SOUTH SURREY ARENA 2199 – 148th Street Ice Hockey, Public Skating & Lessons, Figure Skating Championships, Special Events & Fund-raiser Concession Services Ice Hockey Schools Home of South Surrey Eagles - Junior “A” League Hockey Team The South Surrey Arena opened in November 1991 and is home of the BCHL South Surrey Eagles. This facility is one of two Olympic size rinks in the Lower Mainland. Located in the middle of the South Surrey Athletic Park, it is surrounded by forests and athletic fields. Features: 20,000 sq.ft. of exhibit space Fixed seating for 1242 Score board with flexible scoring and timing capabilities 1 Multipurpose room 4 Multi-use dressing rooms Wheel chair accessible on ground level and 2nd floor Skate Shop 42' high ceiling Parking stalls for 296 SOUTH SURREY INDOOR POOL 14655 – 17th Avenue 37 metre, six lane pool with a dive tank, children’s pool, whirlpool and saunas Swimming Lessons, Public Swimming & Courses Fitness Centre Special Events RFP No. 1220-30-06-08 22 SOUTH SURREY RECREATION CENTRE (INCLUDING YOUTH LOUNGE) 14601 – 20th Avenue Sand volleyball court and skate park Various drop-in special events and programs Special Events South Surrey Youth Lounge is located next to the South Surrey Skate Park, our youth lounge features a pool table, foosball, ping pong, a state of the art sound system, TV, Xbox and much more. The lounge opens up onto Gym 3 which is available for use by pre-teens and teens with a Youth Services Membership Card during our drop-in hours. SUNRISE PAVILION (SENIORS’ CENTRE) 10341 – 135th Street Various social & recreational activities/classes, special events and dances Special Events Mini Snack Bar As the Mayor of Surrey in 1972, Bill Vander Zalm officially opened the Sunrise "Pavilion proper", designed by architects to resemble a Chinese bamboo hat. In the 30+ years since then, Sunrise Pavilion has enhanced the lives of many Surrey citizens in their later years. Featured below are details and links to the many aspects and opportunities at Sunrise Pavilion. Sunrise Pavilion affords a number of rental opportunities complemented by rustic, yet bright and modern facility designs. SURREY SPORT AND LEISURE COMPLEX 16555 Fraser Highway Children & Youth programs, birthday parties, and daycamps Adults and Seniors programs Sport and Fitness, weight rooms, fitness gyms, leagues Pools and Arenas, The Surrey Sport & Leisure Complex offers a wide range of activities, including swimming, skating, fitness, events, and social opportunities for all ages and abilities. 25' high ceiling Parking stalls for 122 WHALLEY COMMUNITY RECREATION SERVICES 10275 – 135th Street Special Events Recreational Programs and Social Activities Youth Programs and Social Activities Our facilities include North Surrey Pool and Fitness Facilities, North Surrey Arena, Sunrise Pavilion Seniors' Centre and Tom Binnie Park Community Centre. RFP No. 1220-30-06-08 23 ARTS DIVISION SURREY ARTS CENTRE 13750 – 88th Avenue Art Exhibitions, Art Classes, Tours, Theatre Events, Pottery Studio Rentals, Special Events, Art Library, School Tours Lounge/Concession Services Home of City of Surrey Permanent Art Collection Three Gallery Exhibition Space 402 seat theater SURREY MUSEUM 17710 - 56A Avenue Various Exhibitions, School Tours, City and Community Special Events Home to a large part of Surrey Archives - Repository for Surrey artifacts, historic log cabin attached to site SURREY ARCHIVES 17671 - 56 Avenue The City’s archival collections are located in the rehabilitated 1912 Municipal Hall. This re-use of Surrey’s premier heritage building allows expanded storage for collections and improved reference facilities. Research historians, students of all ages and curious browsers interested in local history will find something to captivate their attention and to answer questions about Surrey’s past. HISTORIC STEWART FARM 13723 Crescent Road Situated in the Elgin Heritage Park on the banks of the Nicomekl River, the Historic Stewart Farm was settled in the 1880’s and operated for six decades as a thriving hay farm. The farmhouse has been restored and furnished to depict life at the turn of the Century. Visitors are invited to step back in time to the days of horse drawn farm tools, hand-churned butter and wood-stove cooking. Located adjacent to the Historic Stewart Farm is the Hooser Weaving Centre. This unique facility celebrates the heritage crafts of spinning, weaving and dyeing. BEAR CREEK PARK 13750 – 88th Avenue Various activities and outdoor attractions Sports Field Running Track Picnic Area Outdoor swimming pool, water play ground Miniature train RFP No. 1220-30-06-08 24 COMMUNITY HALLS Each of the City’s Community Halls offer rental facilities, various recreational programs and venues for special events. The following is a list of Community Halls included in this City of Surrey snack food initiative: ELGIN SCHOOL (ELGIN CENTRE) 3530 144 Street Built in 1921 as the first school for the community of Elgin to replace the condemned Mud Bay School. Vernacular style wood frame with ribbon windows. DESIGNATION BY-LAW: Protected by Designation By-law, 1980, No. 6442. OTHER: Listed on the Canadian Register of Historic Places. ELGIN HALL 14250 Crescent Road One of the oldest community halls in Surrey, built in 1923 in the plain homestead tradition by the Elgin Community Association with land donated by pioneer Dan Johnston. MERIDIAN CENTRE (MERIDIAN BY THE SEA PARK) 2040 - 150 Street Park Amenities: Playground, Tennis Courts (2), and Walking Paths SUNNYSIDE COMMUNITY HALL (BAKERVIEW PARK) 1845 - 154 Street Park Amenities: Playground, Picnic Areas, Soccer Field, Baseball Diamonds (2), and Walking Paths OTHER CITY BUILDINGS CITY HALL 14245 – 56th Avenue Surrey’s City Hall houses a number of the City’s key departments, including the Mayor’s office, City Manager’s office, Engineering Department, Planning and Development Department, Finance, & Technology Department and Human Resources Department. Approximately 600 full time and part time staff are employed at this facility. SURREY PUBLIC WORKS YARD (CENTRAL) 6645 – 148th Street Surrey’s Public Works Yard houses the City’s Purchasing Section, Engineering Operations Dept., Facilities Management Division, Parks Operations Division - Central. Approximately 150 full time and part time staff are employed at this facility. HEMLOCK PUBLIC WORKS YARD 9353 – 160th Street NO VENDING SERVICES WANTED FOR THIS SITE. RFP No. 1220-30-06-08 25 SCHEDULE A-2 FACILITY PATRONAGE (VISITOR ATTENDANCE) SNACK FOOD VENDING – HEALTHIER CHOICES REFERENCE No.: 1220-30-06-08 RFP No. 1220-30-06-08 26 SCHEDULE A-2 FACILITY PATRONAGE (Visitor Attendance) COMMUNITY AND LEISURE SERVICES DIVISION 2006 Cloverdale Arena 11218.5 Cloverdale Recreation Centre 61116 Cloverdale Seniors’ Centre 30205.5 Cloverdale Youth Centre 1359 Fleetwood Community Recreation Centre 139282.5 Fleetwood Youth Lounge UNAVAILABLE Fraser Heights Recreation Centre 43438.5 Guildford Community Recreation Centre 368182.5 Guildford Youth Lounge (Planet Youth) UNAVAILABLE Newton Arena 20332.5 Newton Community Recreation Centre 23628 Newton Seniors’ Centre 140487 Newton Wave Pool 349068 Newton Youth Centre 1216.5 North Surrey Recreation Centre (NSRC) Arena 312372 North Surrey Recreation Centre (NSRC) Pool Incl. in Arena numbers South Surrey Arena 34176 South Surrey Indoor Pool 415060.5 South Surrey Recreation Centre 112174.5 Sunrise Pavilion (Seniors’ Centre) 66523.5 South Surrey Youth Centre UNAVAILABLE Surrey Sports and Leisure Complex (Aquatics) 666565.5 Surrey Sports and Leisure Complex (Arena) 100800 Whalley Community Recreation Office (located at NSRC) UNAVAILABLE Tom Binnie Park – Whalley Youth Centre 3046.5 2007 11044.5 64489.5 33099 2878.5 150714 57825 397879.5 20679 25416 125148 365841 847.5 315076.5 32032.5 473286 143769 73927.5 645865.5 101166 6354 ARTS DIVISION Surrey Arts Centre Surrey Museum Surrey Archives Historic Stewart Farm House 13336.5 6438 51 13302 4119 172.5 6477 5752.5 6087 3720 5065.5 4491 4686 4636.5 COMMUNITY HALLS Elgin Hall (South Surrey) Elgin Centre (South Surrey) Meridian Centre (South Surrey) Sunnyside Hall (South Surrey) Outdoor Pools (9) Bear Creek Hjorth Road Greenaway Sunnyside Holly Pool Kennedy Pool Kwantlen Pool Unwin Pool Port Kells Pool TOTAL ANNUAL PATRONAGE RFP No. 1220-30-06-08 UNAVAILABLE UNAVAILABLE UNAVAILABLE UNAVAILABLE UNAVAILABLE UNAVAILABLE UNAVAILABLE UNAVAILABLE UNAVAILABLE 2945124 3086816 27 SCHEDULE A-3 SALES STATISTICS SNACK FOOD VENDING – HEALTHIER CHOICES REFERENCE No.: 1220-30-06-08 RFP No. 1220-30-06-08 28 SCHEDULE A-3 SALES STATISTICS Facility Total Category Sales For Years 2003 to 2007 Machine Average Annual Sales North Surrey Pool Candy $ 24,279.09 $ 4,855.82 Chips/Cookies $ 16,242.58 $ 3,248.52 $ 40,521.67 $ 8,104.33 South Surrey Pool Coffee $ 8,510.86 $ 1,702.17 Candy $ 57,626.22 $ 11,525.24 Chips/Cookies $ 38,171.23 $ 7,634.25 Ice Cream $ 3,393.10 $ 678.62 Mars $ 1,645.40 $ 329.08 $ 109,346.81 $ 21,869.36 Coffee $ 6,561.31 $ 1,312.26 Candy $ 59,996.39 $ 11,999.28 Chips/Cookies $ 40,666.77 $ 8,133.35 Ice Cream $ 25,519.62 $ 5,103.92 Mars $ 4,359.76 $ 871.95 $ 137,103.85 $ 27,420.77 Mars $ 827.43 $ 165.49 Candy - 1 $ 14,135.72 $ 2,827.14 Candy - 2 $ 22,589.28 $ 4,517.86 Chips/Cookies - 1 $ 9,929.11 $ 1,985.82 Chips/Cookies - 2 $ 16,076.75 $ 3,215.35 Mars - 1 $ 4,513.33 $ 902.67 Mars - 2 $ 5,536.48 $ 1,107.30 $ 72,780.67 $ 14,556.13 Candy $ 14,220.09 $ 2,844.02 Chips/Cookies $ 9,510.64 $ 1,902.13 $ 23,730.73 $ 4,746.15 Candy $ 6,027.61 $ 1,205.52 Chips/Cookies $ 4,042.84 $ 808.57 $ 10,070.45 $ 2,014.09 Coffee $ 17,159.48 $ 3,431.90 Candy $ 42,685.50 $ 8,537.10 Chips/Cookies $ 28,019.65 $ 5,603.93 Mars $ 11,283.78 $ 2,256.76 $ 99,148.41 $ 19,829.68 Newton Wave Pool Whalley Rec Center Guildford Rec Center Fleetwood Rec Center South Surrey Community Rec. Office North Surrey Arena RFP No. 1220-30-06-08 29 Fleetwood Arena Coffee $ 12,240.18 $ 2,448.04 Candy $ 28,433.23 $ 5,686.65 Chips/Cookies $ 20,411.72 $ 4,082.34 Mars $ 19,876.84 $ 3,975.37 Ice Cream [2007] $ 1,613.14 $ 322.63 $ 82,575.11 $ 16,515.02 Coffee $ 5,863.46 $ 1,172.69 Candy $ 14,003.01 $ 2,800.60 Chips/Cookies $ 9,349.83 $ 1,869.97 Mars $ 4,569.51 $ 913.90 $ 33,785.81 $ 6,757.16 Coffee $ 10,280.41 $ 2,056.08 Candy $ 23,789.83 $ 4,757.97 Chips/Cookies $ 15,947.64 $ 3,189.53 Mars $ 6,071.43 $ 1,214.29 $ 56,089.31 $ 11,217.86 Coffee $ 9,668.49 $ 1,933.70 Candy $ 15,208.15 $ 3,041.63 Chips/Cookies $ 17,272.35 $ 3,454.47 $ 42,148.99 $ 8,429.80 Coffee $ 8,181.92 $ 1,636.38 Candy $ 15,293.01 $ 3,058.60 Chips/Cookies $ 10,251.70 $ 2,050.34 Mars $ 2,403.60 $ 480.72 $ 36,130.23 $ 7,226.05 Cloverdale Arena South Surrey Arena Newton Arena Semiahmoo Public Library Building Candy Chips/Cookies City Hall City Works Yard Candy $ - $ - Chips/Cookies $ 4,328.68 $ 865.74 $ 4,328.68 $ 865.74 Candy - 1 $ 41,363.29 $ 8,272.66 Chips/Cookies - 1 $ 27,575.57 $ 5,515.11 Candy - 2 $ 42,573.04 $ 8,514.61 Chips/Cookies - 2 $ 28,382.02 $ 5,676.40 $ 139,893.92 $ 27,978.78 Candy - 1 $ 1,895.28 $ 1,895.28 Chips/Cookies - 1 $ 1,447.19 $ 1,447.19 Candy - 2 $ 1,231.22 $ 1,231.22 Chips/Cookies - 2 $ 820.81 $ 820.81 $ 5,394.50 $ 5,394.50 Leisure Aquatics (1999) Inc Leisure Aquatics (1999) Inc. [Pool2007] RFP No. 1220-30-06-08 30 DISCLAIMER: While every attempt is made to provide accurate information and to correct any errors brought to our attention, no representation or guarantee can be made as to the correctness or suitability of the information as presented herein. RFP No. 1220-30-06-08 31 SCHEDULE B - DRAFT SAMPLE AGREEMENT BETWEEN CITY OF SURREY AND [CONTRACTOR] FOR SNACK FOOD VENDING – HEALTHIER CHOICES REFERENCE No.: 1220-30-06-08 RFP No. 1220-30-06-08 32 SAMPLE AGREEMENT TABLE OF CONTENTS 1. INTERPRETATION ................................................................................................................... 36 1.1 Definitions .............................................................................................................................. 36 1.2 Appendices ............................................................................................................................ 36 2. SERVICES ................................................................................................................................. 36 2.1 Services ................................................................................................................................. 36 2.2 Amendment of Services ......................................................................................................... 36 2.3 Additional Services ................................................................................................................. 36 2.4 Standard of Care .................................................................................................................... 37 2.5 Time ....................................................................................................................................... 37 3. PERSONNEL............................................................................................................................. 37 3.1 Qualified Personnel ................................................................................................................ 37 3.2 Listed Personnel and Sub-Contractors .................................................................................. 37 3.3 Replacement of Personnel or Sub-Contractors ..................................................................... 37 3.4 Sub-Contractors and Assignment .......................................................................................... 37 3.5 Agreements with Sub-Contractors ......................................................................................... 37 4. LIMITED AUTHORITY .............................................................................................................. 38 4.1 Agent of City........................................................................................................................... 38 4.2 Independent Contractor ......................................................................................................... 38 5. FINANCIAL SUMMARY ............................................................................................................ 38 5.1 Commission Payment ............................................................................................................ 38 5.2 Payment Procedures.............................................................................................................. 38 5.3 Commissions ......................................................................................................................... 39 5.4 Records .................................................................................................................................. 39 6. CITY RESPONSIBILITIES ........................................................................................................ 40 6.1 City Information ...................................................................................................................... 40 6.2 City Decisions ........................................................................................................................ 40 6.3 Notice of Defect ..................................................................................................................... 40 7. INSURANCE AND DAMAGES ................................................................................................. 40 7.1 Indemnity................................................................................................................................ 40 7.2 Survival of Indemnity .............................................................................................................. 40 7.3 Contractor’s Insurance Polices .............................................................................................. 41 7.4 Insurance Requirements ........................................................................................................ 41 7.5 Waiver of Subrogation ........................................................................................................... 41 7.6 Additional Insurance............................................................................................................... 41 8. TERMINATION .......................................................................................................................... 42 8.1 By the City .............................................................................................................................. 42 8.2 Termination for Cause ........................................................................................................... 42 8.3 Curing Defaults ...................................................................................................................... 42 9. APPLICABLE LAWS, BUILDING CODES AND BY-LAWS ..................................................... 43 9.1 Applicable Laws................................................................................................................... 43 9.2 Codes and By-Laws ............................................................................................................ 43 9.3 Interpretation of Codes ........................................................................................................ 43 RFP No. 1220-30-06-08 33 10. CONFIDENTIALITY AND DISCLOSURE OF INFORMATION................................................. 43 10.1 No Disclosure....................................................................................................................... 43 10.2 Freedom of Information and Protection of Privacy Act ........................................................ 43 10.3 Return of Property................................................................................................................ 43 11. USE OF WORK PRODUCT ...................................................................................................... 43 12. WORKERS’ COMPENSATION BOARD AND OCCUPATIONAL HEALTH AND SAFETY .... 43 13. BUSINESS LICENSE ................................................................................................................ 44 14. DISPUTE RESOLUTION ........................................................................................................... 44 14.1 Dispute Resolution Procedures ........................................................................................... 44 15. JURISDICTION ......................................................................................................................... 45 16. CONTRACTOR PERFORMANCE REVIEW ............................................................................. 45 17. BUSINESS REVIEW & PLANNING .......................................................................................... 45 18. VENDING MACHINE BY-LAW ................................................................................................. 45 19. GENERAL ................................................................................................................................. 45 19.1 Entire Agreement ................................................................................................................. 45 19.2 Amendment ......................................................................................................................... 45 19.3 Survival of Obligations ......................................................................................................... 46 19.4 Cumulative Remedies .......................................................................................................... 46 19.5 Notices ................................................................................................................................. 46 19.6 Unenforceability ................................................................................................................... 46 19.7 Headings .............................................................................................................................. 46 19.8 Singular, Plural and Gender ................................................................................................. 46 19.9 Waiver .................................................................................................................................. 46 APPENDIX 1 – SCOPE OF SERVICES ................................................................................................... APPENDIX 2 – FINANCIAL PROPOSAL ................................................................................................. APPENDIX 3 – TIME SCHEDULE............................................................................................................ APPENDIX 4 – PERSONNEL AND SUB-CONTRACTORS .................................................................... APPENDIX 5 – VEND EQUIPMENT LOCATIONS AND CONFIGURATIONS ........................................ APPENDIX 6 – FORM OF REPORTS ...................................................................................................... RFP No. 1220-30-06-08 34 SNACK FOOD VENDING – HEALTHIER CHOICES REF. #1220-30-06-08 SAMPLE AGREEMENT THIS AGREEMENT dated for reference the _______ day of ______________________, 2008. BETWEEN: CITY OF SURREY 14245 –56th Avenue Surrey, British Columbia V3X 3A2 (the “City”) OF THE FIRST PART AND: (the “Contractor”) OF THE SECOND PART WHEREAS A. The City requires the provision of a snack food vending supply arrangement (goods, equipment and services) and has received proposals in response to its Request For Proposal (RFP), and after evaluating the proposals, the City selected the Contractor as the exclusive supplier of snack food and beverage vending services, and as contemplated by the Request For Proposal entered into negotiations to clarify outstanding issues and to refine the proposed arrangement between them. B. The City and Contractor have agreed to a snack food and beverage vending services arrangement at those premises listed in Appendix 5 attached and any other future premises operating under the control of the City. C. The City has agreed to accept such snack food and beverage vend products and all vending equipment as more particularly described in Appendix 5 attached (“Locations” and “Configurations”). D. The City and Contractor now wish to enter into this Agreement to set forth the rights and obligations of each of them with respect to the exclusive supply snack food including full service vending maintenance and equipment repairs and service. THEREFORE, in consideration of the payment of $1.00 and other good and valuable consideration paid by each of the parties to each other (the receipt and sufficiency of which hereby acknowledged), the City and the Contractor agree as follows: RFP No. 1220-30-06-08 35 1. INTERPRETATIONS 1.1 Definitions In this Agreement the following definitions apply: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) 1.2 “Agreement” means this agreement and all schedules and appendices attached hereto; “City” means the City of Surrey; “Contractor” means a contractor who is providing the Goods and Services under this Agreement; “Commission” means the commission rates set out in Appendix 2 for the provision of the Goods and Services, unless otherwise agreed by the parties in writing; “Department Representative” means the General Manager, Parks Recreation & Culture Department, who will represent all City Departments for the purposes of this Agreement, or, such other person who may subsequently be appointed in writing by the Department Representative and notified to the Contractor; “Dispute” has the meaning set out in section 14.1; “Indemnitees” has the meaning set out in section 7.1; “Goods” means the equipment or materials (if any) as described generally in Schedule A; “RFP” means Request For Proposals “Services” has the meaning set out in section 2.1; "Term" has the meaning set out in Appendix 1; and, “Time Schedule” has the meaning set out in section 2.5; Appendices The following attached Appendices are a part of this Agreement: (a) (b) (c) (d) (e) (f) Appendix 1 – Scope of Services; Appendix 2 – Financial Proposal; Appendix 3 – Time Schedule; Appendix 4 – Personnel and Sub-Contractors; Appendix 5 – Vend Equipment Locations and Configurations; and, Appendix 6 – Form of Reports. 2. SERVICES 2.1 Services The City hereby retains the Contractor to provide refreshment and other vending services as described generally in Appendix 1, including anything and everything required to be done for the fulfillment and completion of this Agreement (the “Services”). 2.2 Amendment of Services The City may from time to time, by written notice to the Contractor, make changes in the specifications of the Goods scope of the Services. 2.3 Additional Services The Contractor will, if required in writing by the City, provide additional goods or services. The terms of this Agreement will apply to any additional goods or services, and the rate(s) of commission for additional goods or services, and the time for the Contractor’s performance, will generally correspond to the rate(s) of commission and time of performance as described in RFP No. 1220-30-06-08 36 Appendices 2 and 3. The Contractor will not provide any additional goods or services in excess of the specifications of Goods or scope of Services requested in writing by the City. 2.4 Standard of Care The Contractor will perform the Services with that degree of care, skill and diligence normally provided by a qualified and experienced practitioner performing services similar to the Services, and on the understanding that the City is relying on the Contractor’s experience and expertise. The Contractor represents that it has the expertise, qualifications, resources and relevant experience to provide the Services. 2.5 Time The Contractor acknowledges that time is of the essence with respect to the provision of the Services and accordingly the Contractor will provide the Services within the performance or completion dates or time periods (the "Time Schedule") as set out in Appendix 3, or as otherwise agreed to in writing by the City and the Contractor. If at any time the Contractor discovers that the Time Schedule cannot be met it will immediately advise the City in writing and provide a revised Time Schedule. 3. PERSONNEL 3.1 Qualified Personnel The Contractor will provide only professional personnel who have the qualifications, experience and capabilities to perform the Services. 3.2 Listed Personnel and Sub-Contractors The Contractor will perform the Services using the personnel and sub-contractors as may be listed in Appendix 4, and the Contractor will not remove any such listed personnel or subcontractors from the Services without the prior written approval of the City. 3.3 Replacement of Personnel or Sub-Contractors If the City reasonably objects to the performance, qualifications, experience or suitability of any of the Contractor's personnel or sub-contractors then the Contractor will, on written request from the City, replace such personnel or sub-contractors. 3.4 Sub-Contractors and Assignment Except as provided for in section 3.2, the Contractor will not engage any personnel or sub-contractors, or sub-contract or assign its obligations under this Agreement, in whole or in part, without the prior written approval of the City. 3.5 Agreements with Sub-Contractors The Contractor will preserve and protect the rights of the City with respect to any Services performed under sub-contract and incorporate the terms and conditions of this Agreement into all sub-contracts as necessary to preserve the rights of the City under this Agreement. The Contractor will be as fully responsible to the City for acts and omissions of sub-contractors and of persons directly or indirectly employed by them as for acts and omissions of persons directly employed by the Contractor. RFP No. 1220-30-06-08 37 4. LIMITED AUTHORITY 4.1 Agent of City The Contractor is not and this Agreement does not render the Contractor an agent or employee of the City, and without limiting the above, the Contractor does not have authority to enter into any contract or reach any agreement on behalf of the City, except for the limited purposes as may be expressly set out in this Agreement, or as necessary in order to perform the Services. The Contractor will make such lack of authority clear to all persons with whom the Contractor deals in the course of providing the Services. 4.2 Independent Contractor The Contractor is an independent contractor. This Agreement does not create the relationship of employer and employee, a partnership, or a joint venture. The City will not control or direct the details, means or process by which the Contractor performs the Services. The Contractor will determine the number of days and hours of work required to properly and completely perform the Services. The Contractor is primarily responsible for performance of the Services and may not delegate or assign any Services to any other person except as provided for in section 3.4. The Contractor will be solely liable for the wages, fringe benefits, work schedules and work conditions of any partners, employees or sub-contractors. 5. FINANCIAL SUMMARY 5.1 Commission Payment During the term of this Agreement, the Contractor will pay a commission (the “Commissions”) to the City equal to a percentage of all gross revenues (less applicable sales tax and deposits, if any) collected by the Contractor from the sale of snack food and beverages vended from the Contractor’s machines at various City buildings, as set out in Appendix 5. Commissions to the City are to be paid directly to the City by the Contractor in the form of a cheque. 5.2 Payment Procedures The Contractor shall calculate and remit Commissions earned on or before the fifteenth (15 th) day following the month just ended. In support of each commission cheque issued, the Contractor is required to attach a monthly revenue and commission report covering the following information: For each location: Gross dollar sales and commissions. Indicate separate calculations for each commission type. Net sales and commissions. Indicate separate calculations for each commission type. For each machine: Counter readings – indicating beginning and ending counter readings. Explanation of counter discrepancies resulting from malfunctions or repairs to the machines. Unit sales for each type of product sold in each machine. The monthly commission is subject to 5% G.S.T. RFP No. 1220-30-06-08 38 All payments due to the City will be presented to: City of Surrey Finance and Technology Department Financial Services Division Financial P.R.&C Services 14245 – 56th Avenue Surrey, BC V3X 3A2 An additional ten (10%) percent per month late fee will be applied to any late payments not received by the fifteenth (15th) day of each succeeding calendar month. Monthly payments can be made as one lump sum covering all locations; however, lump sum payments must be accompanied by a statement showing the following: 5.3 Commissions The City makes no guarantee as to the amount of product that will be sold within a fiscal year. Under no circumstances will the City be required to sell a minimum amount of product in order to receive the commissions or other financial and/or non-financial benefits agreed upon. (a) 5.4 Lost Sales The Contractor is responsible for and is taking all risk with respect to any reduction of Gross Sales due to theft, fire, accident, vandalism, temporary loss of power, temporary or permanent site closures, changes to site or facility construction plans, other acts beyond the City’s control, actions within the City’s control that are taken in the best interests of the public and/or any other taken in the reasonable exercise of the City’s discretion. Unless otherwise expressly agreed to in writing by the City, no reduction in Gross Sales attributable to such factors shall constitute a basis for reducing or renegotiating any annual commission guarantees, or any other payments to the City. Records (a) (b) Operator’s Records For the purpose of ascertaining the amount payable as percentage of commission payable, the Contractor agrees to maintain, at its expense, accurate and true records of all sales and revenue collected from the vend equipment and such records shall be available to the City for inspection for a period of not less than three (3) years following the end of each operating year. The City’s representative shall have the right to authorize City employees to examine these records aforesaid on reasonable notice during regular business hours. The City agrees to keep confidential all information obtained under this Agreement. Quarterly Report The Contractor shall deliver to and review with the City a quarterly report detailing all sales and purchase per facility per reporting period, a description of the item sold, unit of issue, unit price; and, quantity sold for the current quarter and year-to-date. Submission of the quarterly report is to be no later than one month following the three-month reporting period. The quarterly reports shall be provided in either electronic format or computer generated spreadsheets. RFP No. 1220-30-06-08 39 The Contractor is to interpret and summarize the data contained in the revenue statement and provide recommendations for improvement, where applicable. (c) Annual Report The Contractor is to provide to the City an audited annual operating statement showing all revenues related to the snack food vending operation under this Agreement. The annual operating statement shall be externally and independently audited. Such statement will be submitted to the City, no later than sixty (60) days following the Contractor’s fiscal year end. If such audit shall disclose a liability for commission payable the Contractor shall promptly pay the City. 6. CITY RESPONSIBILITIES 6.1 City Information The City will, in co-operation with the Contractor, make efforts to make available to the Contractor information, surveys, and reports which the City has in its files and records that relate to the Services. The Contractor will review any such material upon which the Contractor intends to rely and take reasonable steps to determine if that information is complete or accurate. The Contractor will assume all risks that the information is complete and accurate and the Contractor will advise the City in writing if in the Contractor’s judgment the information is deficient or unreliable and undertake such new surveys and investigations as are necessary. 6.2 City Decisions The City will in a timely manner make all decisions required under this Agreement, examine documents submitted by the Contractor and respond to all requests for approval made by the Contractor pursuant to this Agreement. 6.3 Notice of Defect If the City observes or otherwise becomes aware of any fault or defect in the Services, it may notify the Contractor, but nothing in this Agreement will be interpreted as giving the City the obligation to inspect or review the Contractor’s performance of the Services. 7. INSURANCE AND DAMAGES 7.1 Indemnity The Contractor will indemnify and save harmless the City and all of its elected and appointed officials, officers, employees, servants, representatives and agents (collectively the “Indemnitees”), from and against all claims, demands, causes of action, suits, losses, damages and costs, liabilities, expenses and judgments (including all actual legal costs) for damage to or destruction or loss of property, including loss of use, and injury to or death of any person or persons which any of the Indemnitees incur, suffer or are put to arising out of or in connection with any failure, breach or non-performance by the Contractor of any obligation of this Agreement, or any wrongful or negligent act or omission of the Contractor or any employee or agent of the Contractor. 7.2 Survival of Indemnity The indemnities described in section 7.1 and 12.3 will survive the termination or completion of this Agreement and, notwithstanding such termination or completion, will continue in full force and effect for the benefit of the Indemnitees. RFP No. 1220-30-06-08 40 7.3 Contractor's Insurance Policies The Contractor will, without limiting its obligations or liabilities and at its own expense, provide and maintain throughout this Agreement the following insurance in forms and amounts acceptable to the City from insurers licensed to conduct business in Canada: 7.4 (a) commercial general liability insurance on an occurrence basis, in an amount not less than Five million ($5,000,000) dollars inclusive per occurrence against death, bodily injury and property damage arising directly or indirectly out of the provision of the Services by the Contractors, its employees, agents, and subContractors. The insurance policy will be endorsed to add the City as additional insured and will include cross liability and severability of interests such that the coverage shall apply in the same manner and to the same extent as though a separate policy had been issued to each insured. The insurance will include, but not be limited to: blanket contractual, employees as additional insureds, nonowned automobile, owners and contractors protective liability, contingent employers liability, personal injury, and where such further risk exists, advertising liability; and, (b) automobile liability insurance on all vehicles owned, operated or licensed in the name of the Contractor in an amount not less than Three million ($3,000,000) dollars per occurrence for bodily injury, death and damage to property. Insurance Requirements The Contractor will provide the City with evidence of the required insurance prior to the commencement of this Agreement. Such evidence will be in the form of a completed certificate of insurance acceptable to the City. The Contractor will, on request from the City, provide certified copies of all of the Contractor’s insurance policies providing coverage relating to the Services, including without limitation any professional liability insurance policies. All required insurance will be endorsed to provide the City with thirty (30) days advance written notice of cancellation or material change. The Contractor will require and ensure that each subContractor maintain insurance comparable to that required above. The Contractor will be responsible for deductible amounts under the insurance policies. All of the Contractor's insurance policies will be primary and not require the sharing of any loss by the City or any insurer of the City. 7.5 Waiver of Subrogation The Contractor hereby waives all rights of recourse against the City for loss or damage to the Contractor's property. 7.6 Additional Insurance Subject to any specific agreements the City and the Contractor may have reached with respect to insurance, as may be set out in other provisions of this Agreement, the Contractor will, as part of the Services, cooperate with the City to obtain additional insurance covering the Services if the City in its discretion determines that additional insurance is required. The City may pay the cost of the premiums for any additional insurance. The Contractor acknowledges that any requirements of the City as to the amount of coverage under any policy of insurance will not constitute a representation by the City that the amount required is adequate and the Contractor acknowledges and agrees that the Contractor is solely responsible for obtaining and maintaining policies of insurance in adequate amounts. The insurance policy coverage limits shall not be construed as relieving the Contractor from responsibility for any amounts which may exceed these limits, for which the Contractor may be legally liable. RFP No. 1220-30-06-08 41 8. TERMINATION 8.1 By the City The City may at any time and for any reason by written notice to the Contractor terminate this Agreement before the completion of all the Services, such notice to be determined by the City at its sole discretion. Upon receipt of such notice, the Contractor will perform no further Services other than the work which is reasonably required to terminate the Services and return the City’s property to the City. Despite any other provision of this Agreement, if the City terminates this Agreement before the completion of all the Services, the City will pay to the Contractor all amounts owing under this Agreement for Services provided by the Contractor up to and including the date of termination, plus reasonable termination costs in the amount as determined by the City in its sole discretion. Upon payment of such amounts no other or additional payment will be owed by the City to the Contractor, and, for certainty, no amount will be owing on account of lost profits relating to the portion of the Services not performed or other profit opportunities. 8.2 Termination for Cause The City may terminate this Agreement for cause as follows: (a) (b) If the Contractor is adjudged bankrupt, or makes a general assignment for the benefit of creditors because of its insolvency, or if a receiver is appointed because of its insolvency, the City may, without prejudice to any other right or remedy the City may have, terminate this Agreement by giving the Contractor or receiver or trustee in bankruptcy written notice; or If the Contractor is in breach of any term or condition of this Agreement, and such breach is not remedied to the reasonable satisfaction of the City within 5 days after delivery of written notice from the City to the Contractor, then the City may, without prejudice to any other right or remedy the City may have, terminate this Agreement by giving the Contractor further written notice. If the City terminates this Agreement as provided by this Section, then the City may: (c) (d) (e) (f) 8.3 enter into contracts, as it in its sole discretion sees fit, with other persons to complete the Services; withhold payment of any amount owing to the Contractor under this Agreement for the performance of the Services; set-off the total cost of completing the Services incurred by the City against any amounts owing to the Contractor under this Agreement, and at the completion of the Services pay to the Contractor any balance remaining; and if the total cost to complete the Services exceeds the amount owing to the Contractor, charge the Contractor the balance, which amount the Contractor will forthwith pay. Curing Defaults If the Contractor is in default of any of its obligations under this Agreement, then the City may without terminating this Agreement, upon 5 days written notice to the Contractor, remedy the default and set-off all costs and expenses of such remedy against any amounts owing to the Contractor. Nothing in this Agreement will be interpreted or construed to mean that the City has any duty or obligation to remedy any default of the Contractor. RFP No. 1220-30-06-08 42 9. APPLICABLE LAWS, BUILDING CODES AND BY-LAWS 9.1 Applicable Laws This Agreement will be governed by and construed in accordance with the laws of the Province of British Columbia. The City and the Contractor accept the jurisdiction of the courts of British Columbia and agree that any action under this Agreement be brought in such courts. 9.2 Codes and By-Laws The Contractor will provide the Services in full compliance with all applicable laws, building codes and regulations. 9.3 Interpretation of Codes The Contractor will, as a qualified and experienced professional, interpret applicable codes, laws and regulations applicable to the performance of the Services. If an authority having jurisdiction imposes an interpretation which the Contractor could not reasonably have verified or foreseen prior to entering into this Agreement, then the City will pay the additional costs, if any, of making alterations so as to conform to the required interpretation. 10. CONFIDENTIALITY AND DISCLOSURE OF INFORMATION 10.1 No Disclosure Except as provided for by law or otherwise by this Agreement, the Contractor will keep strictly confidential any information supplied to, obtained by, or which comes to the knowledge of the Contractor as a result of the performance of the Services and this Agreement, and will not, without the prior express written consent of the City, publish, release, disclose or permit to be disclosed any such information to any person or corporation, either before, during or after termination of this Agreement, except as reasonably required to complete the Services. 10.2 Freedom of Information and Protection of Privacy Act The Contractor acknowledges that the City is subject to the Freedom of Information and Protection of Privacy Act of British Columbia and agrees to any disclosure of information by the City required by law. 10.3 Return of Property The Contractor agrees to return to the City all of the City’s property at the completion of this Agreement, including any and all copies or originals of reports provided by the City. 11. USE OF WORK PRODUCT The Contractor hereby sells, assigns and transfers to the City the right, title and interest required for the City to use and receive the benefit of all the reports, drawings, plans, designs, models, specifications, computer software, concepts, products, designs or processes or other such work product produced by or resulting from the Services rendered by the Contractor. 12. WORKERS' COMPENSATION BOARD AND OCCUPATIONAL HEALTH AND SAFETY 12.1. The Contractor will, at its own expense, procure and carry full Workers' Compensation Board coverage for itself and all workers, employees, servants and others engaged in the supply of the Services. The City has the unfettered right to set off the amount of the unpaid premiums and assessments for the Workers' Compensation Board coverage against any monies owing by the City to the Contractor. The City will have the right to RFP No. 1220-30-06-08 43 withhold payment under this Agreement until the Workers’ Compensation Board premiums, assessments or penalties in respect of the Services have been paid in full. 12.2 The Contractor will provide the City with the Contractor's Workers’ Compensation Board registration number and a letter from the Workers’ Compensation Board confirming that the Contractor is registered in good standing with the Workers’ Compensation Board. 12.3 Without limiting the generality of any other indemnities granted by the Contractor in this Agreement, the Contractor will indemnify and save harmless the Indemnitees from and against all claims, demands, causes of action, suits, losses, damages, costs, liabilities, expenses, judgments, penalties and proceedings (including all actual legal costs) which any of the Indemnitees incur, suffer or are put to arising out of or in any way related to unpaid Workers' Compensation Board assessments owing from any person or corporation engaged in the performance of this Agreement or arising out of or in any way related to the failure to observe safety rules, regulations and practices of the Workers' Compensation Board, including penalties levied by the Workers' Compensation Board. 12.4 The Contractor will ensure compliance with and conform to all health and safety laws, by-laws or regulations of the Province of British Columbia, including without limitation the Workers Compensation Act and Regulations pursuant thereto. The Contractor agrees that it is the “Prime Contractor” for the Services as defined in the Workers Compensation Act. 12.5 The City may, on twenty-four (24) hours written notice to the Contractor, install devices or rectify any conditions creating an immediate hazard existing that would be likely to result in injury to any person. However, in no case will the City be responsible for ascertaining or discovering, through inspections or review of the operations of the Contractor or otherwise, any deficiency or immediate hazard. 12.6 The Contractor understands and undertakes to comply with all the Workers’ Compensation Board Occupational Health and Safety Regulations for hazardous materials and substances, and in particular with the "Workplace Hazardous Materials Information Systems (WHMIS)" Regulations. All "Material Safety Data Sheets (MSDS)" will be shipped along with the Goods and any future MSDS updates will be forwarded. 13. BUSINESS LICENSE The Contractor will obtain and maintain throughout the term of this Agreement a valid City of Surrey business license. 14. DISPUTE RESOLUTION 14.1 Dispute Resolution Procedures The parties will make reasonable efforts to resolve any dispute, claim, or controversy arising out of this Agreement or related to this Agreement (“Dispute”) using the dispute resolution procedures set out in this section 14. (a) (b) Negotiation. The parties will make reasonable efforts to resolve any Dispute by amicable negotiations and will provide frank, candid and timely disclosure of all relevant facts, information and documents to facilitate negotiations. Mediation. If all or any portion of a Dispute cannot be resolved by good faith negotiations within 30 days, either party may by notice to the other party refer the matter to mediation. Within 7 days of delivery of the notice, the parties will mutually appoint a mediator. If the parties fail to agree on the appointment of the mediator, then either party may apply to the British Columbia International Commercial Arbitration Centre for appointment of a mediator. The parties will RFP No. 1220-30-06-08 44 (c) 15. continue to negotiate in good faith to resolve the Dispute with the assistance of the mediator. The place of mediation will be Surrey, British Columbia. Each party will equally bear the costs of the mediator and other out-of-pocket costs, and each party will bear its own costs of participating in the mediation. Litigation. If within 90 days of the request for mediation the Dispute is not settled, or if the mediator advises that there is no reasonable possibility of the parties reaching a negotiated resolution, then either party may without further notice commence litigation. JURISDICTION Nothing in this Agreement limits or abrogates, or will be deemed to limit or abrogate, the jurisdiction of the Council of the City in the exercise of its powers, rights or obligations under any public or private statute, regulation or by-law or other enactment. 16. CONTRACTOR PERFORMANCE REVIEW The Contractor’s performance will be evaluated by the City no less than annually on the following criteria: (a) (b) (c) 17. Overall financial performance as compared to the previous year’s performance adjusted for traffic variations. The City expects vending revenues to show positive growth. Actual figures compared to revenue projections will be compared to analyze variances. Severity and volume of customer complaints. Site reports that include, but are not limited to, cleanliness of the equipment, assortment of products, the amount of down time and responsiveness to service calls. BUSINESS REVIEW & PLANNING The Contractor agrees to conduct quarterly business review meetings with the Department Representative, and key stakeholders established as a snack food and beverage vending team. Meetings would evaluate promotions, pricing, service, equipment and future opportunities, develop an overall strategic sales and volume build program. The City’s snack food and beverage vending team reserves the right to approve any strategic sales and volume building program. 18. VENDING MACHINE BY-LAW In accordance with Surrey Business Vending Machine By-law, 1999, No. 13680 the Contractor agrees that it has all the required permits as required under this By-law. 19. GENERAL 19.1 Entire Agreement This Agreement, including the Appendices and any other documents expressly referred to in this Agreement as being a part of this Agreement, contains the entire agreement of the parties regarding the provision of the Services and no understandings or agreements, oral or otherwise, exist between the parties except as expressly set out in this Agreement. This Agreement supersedes and cancels all previous agreements between the parties relating to the provision of the Services. 19.2 Amendment This Agreement may be amended only by agreement in writing, signed by both parties. RFP No. 1220-30-06-08 45 19.3 Survival of Obligations All of the Contractor's obligations to perform the Services in a professional and proper manner will survive the termination or completion of this Agreement. 19.4 Cumulative Remedies The City’s remedies under this Agreement are cumulative and in addition to any right or remedy which may be available to the City at law or in equity. 19.5 Notices Any notice, report or other document that either party may be required or may wish to give to the other must be in writing, unless otherwise provided for, and will be deemed to be validly given to and received by the addressee, if delivered personally, on the date of such personal delivery, if delivered by facsimile, on transmission, or if by mail, five calendar days after posting. The addresses for delivery will be as follows: The City: Attention: The Contractor: Attention: 19.6 Unenforceability If any provision of this Agreement is invalid or unenforceable, it will be severed from the Agreement and will not affect the enforceability or validity of the remaining provisions of the Agreement. 19.7 Headings The headings in this Agreement are inserted for convenience of reference only and will not form part of nor affect the interpretation of this Agreement. 19.8 Singular, Plural and Gender Wherever the singular, plural, masculine, feminine or neuter is used throughout this Agreement the same will be construed as meaning the singular, plural, masculine, feminine, neuter or body corporate where the context so requires. 19.9 Waiver No waiver by either party of any breach by the other party of any of its covenants, obligations and agreements will be a waiver of any subsequent breach or of any other covenant, obligation or agreement, nor will any forbearance to seek a remedy for any breach be a waiver of any rights and remedies with respect to such or any subsequent breach. IN WITNESS WHEREOF the parties have duly executed this Agreement on the dates set out below. CITY OF SURREY [CONTRACTOR] Per: ______________________________ Per: ______________________________ Date: ______________________________ Date: ______________________________ RFP No. 1220-30-06-08 46 SCHEDULE C FORM OF PROPOSAL SNACK FOOD VENDING – HEALTHIER CHOICES REFERENCE No.: 1220-30-06-08 RFP No. 1220-30-06-08 47 SCHEDULE C – FORM OF PROPOSAL RFP Project Title: SNACK FOOD VENDING – HEALTHIER CHOICES RFP Reference No.: 1220-30-06-08 Legal Name of Proponent: Contact Person and Title: Business Address: Telephone: Fax: E-Mail Address: TO: MANAGER, PURCHASING & PAYMENTS Finance & Technology Department Purchasing Section, City of Surrey, 6645 – 148th Street Surrey, BC Canada V3X 3A2 Dear Madame: 1. I/We, the undersigned duly authorized representative of the Proponent, having received and carefully reviewed all of the Proposal documents, including the RFP and any issued addenda, and having full knowledge of the Site, and having fully informed ourselves as to the intent, difficulties, facilities and local conditions attendant to performing the Services, submit this Proposal in response to the RFP. 2. I/We confirm that the following appendices are attached to and form a part of this Proposal: Schedule C-1 – Statement of Departures; Schedule C-2 – Proponent’s Experience, Reputation and Resources; Schedule C-3 – Proponent’s Technical Proposal (Services); and Schedule C-4 – Proponent’s Financial Proposal. 3. I/We confirm that this proposal is accurate and true to best of my/our knowledge. 4. I/We confirm that, if I/we am/are awarded the Agreement, I/we will at all times be the “prime contractor” as provided by the Worker's Compensation Act (British Columbia) with respect to the Services. I/we further confirm that if I/we become aware that another consultant at the place(s) of the Services has been designated as the “prime consultant”, I/we will notify the City immediately, and I/we will indemnify and hold the City harmless against any claims, demands, losses, damages, costs, liabilities or expenses suffered by the City in connection with any failure to so notify the City. This Proposal is submitted this ______________ day of _________________________, 2008. I/We have the authority to bind the Proponent. __________________________________ (Name of Proponent) __________________________________ (Signature of Authorized Signing Officer) __________________________________ (Print Name and Position of Authorized Signing Officer) RFP No. 1220-30-06-08 ___________________________________ (Name of Proponent) ___________________________________ (Signature of Authorized Signing Officer) ___________________________________ (Print Name and Position of Authorized Signing Officer) 48 SCHEDULE C-1 - STATEMENT OF DEPARTURES 1. I/We have reviewed the Agreement. If requested by the City, I/We would be prepared to enter into that Agreement, amended by the following departures (list, if any): Section 2. Departure/Alternative The City of Surrey requires that the successful Proponent have the following in place before commencing the Services: a) b) c) d) e) Workers’ Compensation Board coverage in good standing and further, if an “Owner Operator” is involved, personal operator protection (P.O.P.) will be provided, Worker’s Compensation Registration Number ___________________________ A Safety program that meets the WCB standards; Insurance coverage for the amounts required in the proposed Contract as a minimum, naming the City as additional insured and generally in compliance with the City’s sample insurance certificate form (available on the City's web site @ www.surrey.ca as City of Surrey Certificate of Insurance Standard Form (search "revenue and risk"); City of Surrey business license; and The company name indicated above is registered with the Registrar of Companies in the Province of British Columbia, Canada, Incorporation Number ___________________. As of the date of this Proposal, we advise that we have the ability to meet all of the above requirements except as follows (list, if any): Section 3. Departure/Alternative I/We offer the following alternates to improve the Services described in the RFP (list, if any): Section RFP No. 1220-30-06-08 Departure/Alternative 49 SCHEDULE C-2 - PROPONENT’S EXPERIENCE, REPUTATION AND RESOURCES Proponents should provide information on the following: (i) (ii) (iii) (iv) (v) (vi) (vii) Briefly summarize the history of your company, including ownership; Proponent’s relevant experience and qualifications in delivering Services similar to those required by the RFP; Identify two (2) accounts no longer serviced (within the last 5 years). Include name and phone numbers of the contract administrator and state the reasons why they are no longer being serviced; State company experience in providing Healthy Food products, including introduction, education and promotion; Detail any strategic alliances/affiliations; Proponents should also provide information on the background and experience of key personnel proposed in delivering the goods and services; and, Proponent to provide three references of recent successful performance where the requirements were similar to the City’s requirements as set out in this RFP. The City reserves the right to request site visits and demonstrations of existing Proponent operations. Proponent is required to include for each reference the following itemized information: (a) (b) (c) (d) (e) (f) name of client organization reference contact information (i) name (ii) phone number (iii) email address how long has the organization been a client of the Proponent? describe the size and scope of the referenced project. provide the start and completion dates of the project duration, and any relevant comments. information on any significant obstacles encountered and overcome for this type of services. N.B. The City reserves the right to contact any person(s), agency(ies) or firm(s) not listed as part of an independent review. RFP No. 1220-30-06-08 50 SCHEDULE C-3 - PROPONENT’S TECHNICAL PROPOSAL (SERVICES) Proponents should provide the following: A. (i) (ii) (iii) (iv) B. (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv) MANAGEMENT AND PERSONNEL Highlight the main features that distinguish your company from what your competitors purport to offer. How will these features benefit the City of Surrey? Identify the professionals who will be directly responsible for signing-off and accepting relevant liabilities for each part of the project. Provide a description of the work to be performed by the Proponent's own resources, and work which will be performed by subcontracted organizations; State any company performance based incentive programs for route personnel; and Provide examples of financial statements that would be provided (including sales volume & commission by machines, category and location); PROGRAM AND SERVICES Provide a complete list of vending equipment that you propose by facility and floor and location. Include as a minimum the following information: (a) number and type of machine; (b) fascia information; (c) specifications of each type of machine, including dimensions (include pictures or illustrations); (d) facility vending location comments; Describe how you would coordinate the removal of existing vending equipment and installation of proposed; Provide a complete list of products to be vended through your Proposal (food and beverage – projected product mix) that meet the Healthy Guidelines that you propose to launch. Include as a minimum the following information: (a) Product category/description; (b) Product size; Provide a sales projection of annual volume/sales growth assumptions based on annual projected product mix. Separate explanations should be submitted for each type of sales; Describe how you would launch the product line and healthy choices; Provide a comprehensive operational plan that illustrates how the Proponent intends to ensure the success of an agreement. Proponent shall include, procedures and plans for daily operational issues such as equipment servicing, re-stocking, maintenance response time, refund policy and other related issues; Describe your proposed method of analyzing sales and product load/movement per machine and summary report generation include a plan for communication, and performance review; Describe your marketing and promotion strategies for healthy food and for increasing sales; Describe your health education strategy for increasing patron knowledge about healthy food and how to make an informed choice using the check mark labeling system; Describe your proactive equipment maintenance. Describe your service response guarantee for machine breakdown; Submit information on company promotions – typical calendar of events, number per year, methods used to advertise promotion, etc.; and, RFP No. 1220-30-06-08 51 (xvi) Proposal shall also include proposed procedures and reports to be used in monitoring the performance of the vending operation on an ongoing basis. Address the following topics, but Proponents are free to suggest additional measures: (a) Recording, verifying and reporting revenue; (b) Sales activity and projections; (c) Marketing/promoting activity; C. ADDITIONAL BENEFITS PROGRAM OF VALUE ADDED (PRODUCTS, GOODS AND/OR SERVICES BEYOND THOSE DESCRIBED IN SCHEDULE A). (xvii) Describe new innovative and/or groundbreaking ways your organization would like to deliver this service. This is a chance for your organization to explore new opportunities and to challenge the established norms; (xviii) Describe any value added products, goods, services, programs and/or benefits your organization is able to provide to the City in connection with the Proposal, despite not being specifically requested in the RFP; and, (xix) Describe how such value added products, goods, services, programs and/or benefits will benefit the City and assist it to meet its objectives. Please attribute a financial value to such products, goods, and services. Unless otherwise stated, its understood that there will be no cost to the City for such products, goods and/or services. RFP No. 1220-30-06-08 52 SCHEDULE C-4 – PROPONENTS FINANCIAL PROPOSAL SNACK FOOD VENDING – HEALTHIER CHOICES REQUEST FOR PROPOSALS The snack food and beverage vending items have been separated into general categories of snack foods and beverages, however, not all of the snack and beverage food items have been listed in the descriptions provided below. It is the responsibility of the Proponent to include all vending product offerings below. Proposals should be designed to provide the maximum financial benefits to the City. The Proponent shall include in its Proposal a vending price structure that will stimulate sales and maximize revenue to the Proponent and the City. The Proponent must provide a pricing analysis which demonstrates the optimal pricing structure within the City. Proponents should include Proponent’s plan to compensate the City in each of the categories listed below: Vendor Response Information Snack Vending. Product Category/Description [LIST PRODUCT AND BRAND NAMES] Package Size Projected Annual Sales Volume (Units) Vending Machine Price ($/Unit) Year 1 Year 2 Year 3 Year 4 Year 5 Total Estimated Annual Sales ($) Rate of Commission (%) City Annual Commission City Minimum Guaranteed Annual Commission Vending Equipment KW Consumption Additional Incentives Offered Choose Most Choose Sometimes Choose Least Not Recommended N.B. Sales Commission. The Proponent shall state the percentage of the sale of each product that will be paid to the City as a sales commission. The City will not consider Proposals that require minimum sales as a condition to receiving sales commissions. The Proponent shall state whether it will pay the City a minimum amount per year in sales commissions regardless of sales volumes. RFP No. 1220-30-06-08 53