AGENDA REPORT. Meeting Date: June 5, 2018 Item Number: D 15 To: From:

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1 AGENDA REPORT Meeting Date: June 5, 2018 Item Number: D 15 To: From: Honorable Mayor & City Council Tatiana Szerwinski, Assistant Director of Finance Sivan M. Levin, Financial Planning & Research Analyst Subject: AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND ENCORE DIVISION, INC. DBA LOYAL VENDING FOR INSTALLATION, SERVICING, AND STOCKING OF VENDING MACHINES AT CERTAIN CITY FACILITIES Attachments: 1. Agreement 2. Proposal Evaluation Summary 3. Proposal for Encore Division, Inc., DBA Loyal Vending 4. Proposal for First Class Vending 5. Proposal for Intellivend RECOMMENDATION Staff recommends that the City Council approve an agreement between City of Beverly Hills and Loyal Vending for the purpose of installing, servicing, and stocking the snack and beverage machines at various City-owned locations. INTRODUCTION In March 2014, the City contracted with First Class Vending, Inc. to administer the installation and stocking of vending machines at City-owned properties. Since this agreement with First Class Vending terminates on June 30, 2018, a comprehensive Request for Proposal (RFP) was conducted and Loyal Vending, Inc. was the company selected to be the City s new vending machine contractor. DISCUSSION On March 1, 2018, the City issued an informal bid/rfp for Vending Machine Installation and Services with a submission deadline of April 2, The RFP was ed to 12 vendors and was posted publicly on the City s website. As of April 2, 2018 three proposals had been received from Loyal Vending, Inc., First Class Vending, Inc., and Intellivend, Inc. Staff evaluated the vendors on a scale of 1-5, where 5 represented the highest score and 1 represented the lowest score for each of the following proposal criteria

2 > Location Completeness Pricing Rent payments Walk-through Work experience References > Presentation City Staff selected Loyal Vending to be the City s new vending machine contractor based on the highest total score. The City of Beverly Hills has 19 vending machines spread throughout City Hall, the Public Works facilities, and various City parks with First Class Vending. Loyal Vending has agreed to service the same number of machines with comparable and/or healthier food and beverage offerings. The machines currently administered by First Class Vending allow cash as the only form of payment. However, all the proposals offered various forms of payment, such as cash, Google pay, credit card, and various other cashless vending methods of payment. Additionally, Loyal Vending has agreed to pay the City a higher rental fee for the space. First Class Vending proposed to pay the City a rental price of $52 per location, Loyal Vending proposed $74 per machine, and Intellivend proposed $50 per location. The City considered the option of sharing a percentage of revenue; however, decided to proceed with obtaining a rental price per vending unit due to the simplicity of administration, calculation, and collection of rent due to the City. Additional rent details are provided in the next section of this report. FISCAL IMPACT There is no expenditure outlay by the City as Loyal Vending administers all of the inventory maintenance and stocking of their machines and collects all proceeds from its vending machine operations. The City will receive monthly rental fees for the spaces used by the vending machines that will total $16, per year. This rate is comprised of a rental fee of $74 per machine (19 total) per month. This is an increase in revenues by $5,016 per year. The previous vending machine vendor s rental rate was $52 per month per machine for a total of $1 1,856 per year. Tatiana Szerwinski Approved By Page 2 of 2 5/30/2018

3 ATTACHMENT I AGREEMENT

4 AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND ENCORE DIVISION, INC. DBA LOYAL VENDING FOR INSTALLATION, SERVICING, AND STOCKING OF VENDING MACHINES AT CERTAIN CITY FACILITIES NAME OF CONTRACTOR: RESPONSIBLE PRINCIPAL OF CONTRACTOR: Encore Division, Inc. DBA Loyal Vending Jonathan Saghian, President CONTRACTOR S ADDRESS: 3825 S. Santa Fe Ave. Vernon, CA Attention: Jonathan Saghian CONTACTOR S E.I.NrFAX I.D. NO.: CITY S ADDRESS: City of Beverly Hills 455 N. Rexford Drive Beverly Hills, CA Attention: Tatiana Szerwinski, Assistant Director of Finance COMMENCEMENT DATE: July 1, 2018 TERMINATION DATE: June 30, 2021, unless extended pursuant to Section 2 of the Agreement CONSIDERATION: CONTRACTOR shall pay CITY a monthly space rental as set forth in Exhibit B B \ v1 doc

5 AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND ENCORE DIVISION, INC. DBA LOYAL VENDING FOR INSTALLATION, SERVICING, AND STOCKING OF VENDING MACHINES AT CERTAIN CITY FACILITIES THIS AGREEMENT is made by and between the City of Beverly Hills (hereinafter called CITY ), and Encore Division, Inc. DBA Loyal Vending (hereinafter called CONTRACTOR ). RECITALS A. CITY desires to have certain services and/or goods provided as set forth in Exhibit A (the Scope of Work ), attached hereto and incorporated herein. B. CONTRACTOR represents that it is qualified and able to perform the Scope of Works. NOW, THEREFORE, the parties agree as follows: Section 1. CONTRACTOR s Scope of Work. CONTRACTOR shall perform the Scope of Work described in Exhibit A in a manner satisfactory to CITY and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions. CITY shall have the right to order, in writing, changes in the Scope of Work. Any changes in the Scope of Work by CONTRACTOR must be made in writing and approved by both parties. The cost of any change in the Scope of Work must be agreed to by both parties in writing. Section 2. Time of Performance. CONTRACTOR shall commence its services under this Agreement upon the Commencement Date or upon a receipt of a written notice to proceed from CITY. CONTRACTOR shall complete the performance of services by the Termination Date set forth above. The City Manager or his designee may extend the time of performance in writing for two additional one-year terms or such other term not to exceed two years from the date of termination pursuant to the same terms and conditions of this Agreement. Section 3. set forth in Exhibit B Compensation. CONTRACTOR shall pay CITY a monthly space rental as Section 4. Method of Payment. CITY shall pay CONTRACTOR said Consideration in accordance with the method and schedule of payment set forth in Exhibit B. Section 5. Independent Contractor. CONTRACTOR is and shall at all times remain, as to CITY, a wholly independent contractor. Neither CITY nor any of its agents shall have control over the conduct of CONTRACTOR or any of CONTRACTOR s employees, except as herein set forth. CONTRACTOR shall not, at anytime, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of CITY \ v 1 doc

6 Section 6. Assignment. This Agreement shall not be assigned in whole or in part, by CONTRACTOR without the prior written approval of CITY. Any attempt by CONTRACTOR to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect. Section 7. Responsible Principal(s) (a) CONTRACTOR s Responsible Principal set forth above shall be principally responsible for CONTRACTOR s obligations under this Agreement and shall serve as principal liaison between CITY and CONTRACTOR. Designation of another Responsible Principal by CONTRACTOR shall not be made without prior written consent of CITY. (b) CITY s Responsible Principal shall be the City Manager or his designee set forth above who shall administer the terms of the Agreement on behalf of CITY. Section 8. Personnel. CONTRACTOR represents that it has, or shall secure at its own expense, all personnel required to perform CONTRACTOR s Scope of Work under this Agreement. All personnel engaged in the work shall be qualified to perform such Scope of Work. Section 9. Permits and Licenses. CONTRACTOR shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license. Section 10. Interests of CONTRACTOR. CONTRACTOR affirms that it presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the Scope of Work contemplated by this Agreement. No person having any such interest shall be employed by or be associated with CONTRACTOR. Section 11. Insurance. (a) CONTRACTOR shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows: (1) A policy or policies of Comprehensive General Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by CONTRACTOR. (2) A policy or policies of Comprehensive Vehicle Liability Insurance covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per occurrence combined single limit, covering any vehicle utilized by CONTRACTOR in performing the Scope of Work required by this Agreement. California. (3) Workers compensation insurance as required by the State of (b) CONTRACTOR shall require each of its sub-contractors to maintain insurance coverage which meets all of the requirements of this Agreement. B \ v1 doc 3

7 (c) The policy or policies requited by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a A+;Vll in the latest edition of Best s Insurance Guide. (d) CONTRACTOR agrees that if it does not keep the aforesaid insurance in full force and effect CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONTRACTOR s expense, the premium thereon. (e) At all times during the term of this Agreement, CONTRACTOR shall maintain on file with the City Clerk a certificate or certificates of insurance on the form set forth in Exhibit C, attached hereto and incorporated herein, showing that the aforesaid policies are in effect in the required amounts. CONTRACTOR shall, prior to commencement of work under this Agreement, file with the City Clerk such certificate or certificates. The general liability insurance shall contain an endorsement naming the CITY as an additional insured. CONTRACTOR shall provide CITY with thirty (30) days prior written notice if the policies required under this Agreement will be canceled or reduced. All of the policies required under this Agreement shall state that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. (f) The insurance provided by CONTRACTOR shall be primary to any coverage available to CITY. The policies of insurance required by this Agreement shall include provisions for waiver of subrogation. (g) Any deductibles or self-insured retentions must be declared to and approved by CITY. At the option of CITY, CONTRACTOR shall either reduce or eliminate the deductibles or self-insured retentions with respect to CITY, or CONTRACTOR shall procure a bond guaranteeing payment of losses and expenses. (h) The insurance coverage amounts required under the Agreement do not limit CITY s right to recover against CONTRACTOR and its insurance carriers. Section 12. Indemnification. CONTRACTOR agrees to indemnify, hold harmless and defend CITY, City Council and each member thereof, and every officer, employee and agent of CITY, from any claim, liability or financial loss (including, without limitation, attorneys fees and costs) arising from any intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONTRACTOR or any person employed by CONTRACTOR in the performance of this Agreement. Section 13. Termination. (a) CITY shall have the right to terminate this Agreement for any reason or for no reason upon five calendar days written notice to CONTRACTOR. CONTRACTOR agrees to cease all work under this Agreement on or before the effective date of such notice. Section 14. CITY s Responsibility. CITY shall provide CONTRACTOR with all pertinent data, documents, and other requested information as is available for the proper performance of CONTRACTOR s Scope of Work. B07$5-000 I \ e I.doc 4

8 Section 15. Information and Documents. All data, information, documents and drawings prepared for CITY and requited to be furnished to CITY in connection with this Agreement shall become the property of CITY, and CITY may use all or any portion of the work submitted by CONTRACTOR and compensated by CITY pursuant to this Agreement as CITY deems appropriate. Section 16. Records and Inspections. CONTRACTOR shall maintain full and accurate records with respect to all mailers covered under this Agreement for a period of three years. CITY shall have access, without charge, during normal business hours to such records, and the right to examine and audit the same and to make copies and transcripts therefrom, and to inspect all program data, documents, proceedings and activities. Section 17. Changes in the Scope of Work. CITY shall have the right to order, in writing, changes in the scope of work or the services to be performed. Any changes in the scope of work requested by CONTRACTOR must be made in writing and approved by both parties. Section 18. Obligations of CITY. (a) CITY shall provide CONTRACTOR access during normal business hours to CITY facilities listed in Attachment I to Exhibit A of this Agreement for installation and servicing of CONTRACTOR s equipment on a regular and as needed basis. (b) CITY shall furnish CONTRACTOR adequate space and utility services for the installation and operation of CONTRACTOR s equipment. (c) CITY shall not change the location of equipment installed by CONTRACTOR, make any alterations to that equipment or install or allow the installation of other vending equipment during the term of this Agreement unless agreed to by CONTRACTOR in writing. Section 19. Notice. Any notices, bills, invoices, etc. required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during the receiving party s regular business hours or by facsimile before or during the receiving party s regular business hours; or (b) on the second business day following deposit in the United States mail, postage prepaid to the addresses set forth above, or to such other addresses as the parties may, from time to time, designate in writing pursuant to this section. Section 20. Attorney s Fees. In the event that either party commences any legal action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded. Section 21. Entire Agreement. This Agreement represents the entire integrated agreement between CITY and CONTRACTOR, and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by a written instrument signed by both CITY and CONTRACTOR. Section 22. Exhibits; Precedence. All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. BO7$5OOO I \ v I.doc 5

9 Section 23. Governing Law. The interpretation and implementation of this Agreement shall be governed by the domestic law of the State of California. Section 24. CITY Not Obligated to Third Parties. CITY shall not be obligated or liable under this Agreement to any party other than CONTRACTOR. Section 25. Severability. Invalidation of any provision contained herein or the application thereof to any person or entity by judgment or court order shall in no way affect any of the other covenants, conditions, restrictions, or provisions hereof, or the application thereof to any other person or entity, and the same shall remain in full force and effect. California. EXECUTED the day of 20, at Beverly Hills, CITY OF BEVERLY HILLS A Municipal Corporation JULIAN A. GOLD, MD Mayor of the City of Beverly Hills, California ATTEST: BYRON POPE City Clerk (SEAL) CONTRACTOR: ENCORE DIVISION, INC. DBA LOYAL VENDING SAMUEL Vice President/Secretary [Signatures continue] \21 799]2v1 doc 6

10 APPROVED AS TO FORM: APPROVED AS TO CONTENT: LAURENCE S. WIENER City Attorney MAHDI ALUZRI City Manager PITIANA SZV/IN SKI Ass,jtt Di Finance SHARON L HEUREUX DRESSEL Risk Manager BO7$5-OOO\ v1.doc 7

11 EXHIBIT A SCOPE OF WORK CONTRACTOR shall perform the following services: (a) CONTRACTOR shall maintain, service and stock a combination of the following vending machines at the locations selected by CITY on CITY s premises as specified in Attachment 1 to this Exhibit, attached hereto and incorporated herein. ii. iii. iv. A soft drink machine with at least six (6) selections to be approved by CITY, which soft drink machine shall have a coin changer that will accommodate one dollar ($1) bills and electronic payment. A snack machine with the product selection to be approved by CITY, which snack machine will have a coin changer that will accommodate one dollar ($1) bills and electronic payment. A carousel multi-purpose cold food, and microwavable hot food vending machine with the product selection to be approved by CITY, which multi-purpose food machine shall have a coin changer that will accommodate both one dollar ($1) and five dollar ($5) bills; accommodate electronic payment, and a microwave oven for heating microwavable food. A cold drink machine with the product selection to be approved by CITY, which machine shall have a coin changer that will accommodate one dollar ($1) bills and electronic payment. A bill changer machine. (b) The vending machines installed pursuant to this Agreement shall remain the property and responsibility of CONTRACTOR. The vending machines shall not be replaced during the term of this Agreement except with machines of the same model and with the same number and type of selections, unless such changes are approved in writing by the Director of Finance, Assistant Director of Finance or their designees. (c) CONTRACTOR shall maintain and service the vending machines installed by CONTRACTOR as follows: i. Respond to any product change requests made by CITY within one (1) business day. ii. Maintain all equipment in good working order; provide service to vending machines on an as needed basis, and emergency maintenance service upon twenty-four (24) hour oral or written notice. iii. Repair or replace vending machines in the event of damage, loss or destruction and assume any losses for moneys stolen or lost from the machines. iv. Stock and restock soft drink and snack machines on an as needed basis, but not less than three times a week, based on need as determined by CITY. v. Stock and restock the cold food machines with fresh sandwiches and salads as determined by CITY and according to health department guidelines. vi. Stock and restock the cold food machines with all other cold food items having a shelf life of more than one week at least once a week with fresh food and remove food stocked the previous week. vii. Stock carousel multi-purpose cold food/hot food vending machines by 11:30 a.m. on the days such machines are stocked. B \2 I 79912v1.doc 8

12 viii. In the event a refund is required to be given, CONTRACTOR shall contact the persons for the locations listed in Attachment 1 to this Exhibit. ix. Provide a petty cash fund for reimbursement of any moneys lost in the vending machines of $ at each location to the designated responsible person listed in Attachment I to this Exhibit. x. One vending machine at each location shall include the ability to make change for one dollar ($1.00) and five dollar ($5.00) bills, or at CONTRACTOR s option, one change machine capable of making change for one dollar ($1.00) and five dollar ($5.00) bills shall be placed at each location. A sticker shall be placed on the machine to indicate ability to provide change. xi. Vending machines must accept any combination of nickels, dimes, quarters, and dollar coins, bills, and credit/debit cards. xii. All vending machines utilized in connection with the Agreement shall allow for electronic payments. (d) CONTRACTOR shall be responsible for the payment of all required sales taxes which are applicable to the products sold in the vending machines. (e) CONTRACTOR shall obtain and maintain all permits and licenses required by all applicable licensing and regulatory agencies. B \2 I I doc 9

13 EXHIBIT A-i VENDING MACHINE REQUIREMENTS AND LOCATIONS AND MONTHLY RENTAL LOCATION EQUIPMENT TYPE SQ FOOTAGE RENTAL PRICE (per machine) (per month, per machine) *Cfty Hall Employee One (i) soft drinks Lunchroom One (1) snacks 455 North Rexford Drive (Will accept $1 and $5 bills) Room ft q.. $74.00 per machine per month *Library One (i) soft drinks 444 North Rexford Drive One fi) snacks $ nd floor, staff room (Will accept $1 and $5 bills) 28 sq. ft. per machine per month *Police One (1) soft drinks 464 North Rexford Drive One (i) snacks $74.00 Lunchroom (Will accept $1 and $5 bills) 26 sq. ft. per machine Roxbury Park One (3) soft drinks per month 471 South Roxbury One (i) snacks $74.00 One (I) coffee/hot chocolate 35 sq. ft. per machine per month La Cienega Community One (1) soft drinks Center One (i) snacks $ Gregory Way 28 sq. ft. per machine per month One (I) soft drinks $74.00 *public Works One (1) snacks 26 sq. ft. per machine 345 North Foothill Road per month *HR Training Room One (1) soft drinks 455 North Rexford Drive One (1) snacks $ rd floor 26 sq. ft. per machine per month *Public Works Warehouse One (1) soft drinks $ Third Street One (I) snacks 26 sq. ft. per machine Lunchroom per month *Standard pricing areas **All vending machines shall accept cash, credit/debit card and electronic payments as specified in Exhibit A. B I\ I.doc 10

14 EXHIBIT B SPACE RENTAL (a) CONTRACTOR shall pay to CITY for the use of space for the installation and servicing of vending equipment in the amounts listed in Attachment 1 to Exhibit A of this Agreement. (b) In the event CITY requests the removal of vending equipment or installation of additional vending equipment, CONTRACTOR shall decrease or increase the total monthly rental payment to CITY based on the amount specified in Exhibit A of this Agreement. (c) The monthly rental check shall be made payable to City of Beverly Hills and shall be mailed to the following address: City of Beverly Hills Finance Department 455 North Rexford Dr., Room 350 Beverly Hills, California (d) CITY may request in writing, as needed, changes in the obligations of CONTRACTOR under this Agreement. 807$ \ v 1 doc 11

15 EXHIBIT C CERTIFICATE OF INSURANCE This is to certify that the following endorsement is part of the policy(ies) described below: NAMED INSURED ADDRESS COMPANIES AFFORDING COVERAGE A. B. C. COMPANY POLICY EXPIRATION BI, LIMITS AGGREGATE (A B C) COVERAGE NUMBER DATE PD DAUTOMOBILE LIABILITY DGENERAL LIABILITY DPRODUCTS/COMPLETED OPERATIONS DBLANKET CONTRACTUAL DCONTRACTORS PROTECTIVE DPERSONAL INJURY DEXCESS LIABILITY DWORKERS COMPENSATION D It is hereby understood and agreed that the City of Beverly Hills, its City Council and each member thereof and every officer and employee of the CITY shall be named as joint and several assureds with respect to claims arising out of the following project or agreement: It is further agreed that the following indemnity agreement between the City of Beverly Hills and the named insured is covered tinder the policy: Contractor agrees to indemnify, hold harmless and defend CITY, its City Council and each member thereof and every officer and employee of CITY from any and all liability or financial loss resulting from any suits, claims, losses or actions brought against and from all costs and expenses of litigation brought against CITY, its City Council and each member thereof and any officer or employee of CITY which results directly or indirectly from the wrongful or negligent actions of contractor s officers, employees, agents or others employed by Contractor while engaged by Contractor in the (performance of this agreement) construction of this project. It is further agreed that the inclusion of more than one assured shall not operate to increase the limit of the company s liability and that insurer waives any righl of contribution with insurance which may be available to the City of Beverly Hills. In the event of cancellation or material change in the above coverage, the company will give 30 days written notice of cancellation or material change to the certificate holder. Except to certify that the policy(ies) described above have the above endorsement attached, this certificate or verification of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, tenn. or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies. DATE: AGENCY: BY: TITLE: ADDRESS: Authorized Insurance Representative RMO2DOC REVISED 10/14/96 B t\2l799I2vI doe 12

16 ATTACHMENT 2 Proposal Evaluation Summary

17 Summary of Proposal Evaluation Loyal Vending Jntelhvend First Class Vending LOCATION Co MPLETE NESS EMPLOYEE PRICING RENT PAYMENTS 5 I 4 WALK-THROUGH WORK EXPERIENCE REFERENCES QUALIrAThJE/PRESENTATION TOTAL 32 28

18 ATTACHMENT 3 PROPOSAL FOR ENCORE DIVISION, INC. DBA LOYAL VENDING

19 C - > WI Oc >II>II & >4-i b000 P44 om I E 0I C) I. a) C)

20 NAME OF CONTRACTOR: Encore Division inc. DBA Loyal Vending RESPONSIBLE PRINCIPAL OF CONTRACTOR: Jonathan Saghian CONTRACTOR S ADDRESS: 3825 South Santa Fe Ave. Vernon, CA CITY S ADDRESS: City of Beverly Hills 455 N. Rexford Drive Beverly Hills, CA Attention: Dept. Head s Name, Title COMMENCEMENT DATE: July 1, 2018 TERMINATION DATE: June 30, 2021, unless extended pursuant to Section 2 of the Agreement CONSIDERATION: Please see Schedule A

21 SCHEDULE A Equipment Requirements and Locations L.cAIIQN EOUJPMENT TYPE SO FOOTAGE RENTAL PRICE *Qty Hall Employee Lunchroom beverages 455 North Rexford Drive snacks Room 275 (per machine) (per month, per machine) 32 sq. ft. *Library beverages 444 North Rexford Drive snacks 2nd floor, staff room 28 sq. ft. *police beverages 464 North Rexford Drive snacks Lunchroom 26 sq. ft. Roxbury Park beverages 471 South Roxhury snacks coffee/hot chocolate 35 ft q. La Cienega Community Center beverages 8400 Gregory Way snacks 28 ft sq. *Public Works beverages 345 North foothifi Road snacks *HR Training Room beverages 455 North Rexford Drive 3fl floor snacks 26 sq. ft. 26 sq. ft. o.oo *Public Works Warehouse beverages 9357 Third Street snacks Lunchroom 26sq.ft. *Serves City employees

22 Bid No SECTION IV: APPLICATION continued... The undersigned proposes to furnish all materials, supplies, equipment or services set forth herein subject to all conditions outlined in the RFP Document, including the general instructions and information to respondents, at prices indicated in the application: Exceptions or Deviations attached Company Name E4Cc2( Pit-WA Address V7 NO kc. Lf 1dj Telephone i 2 $. \.Jcvot C oos 3/0 /.-5Zr Federal Identification No. Secretary of State No. Provide a list of businesses being served for at least three (3) years. $e v\c?o (+ei%, Cic?pIC VM Provide a list of businesses that terminated services in the last three (3) years with reasons for termination. Person submitting proposal Print Name Title Signature F.O.B. All prices of the proposal shall be F.O.B. destination Beverly Hills, California; and delivery to any point within Beverly Hills shall be without additional charge. TAX All proposals shall be inclusive of tax. ACCEPTANCE OF PROPOSAL The City reserves the right to accept or reject any and all proposals and reserves the right to waive technicalities where such action best serves the interests of the City. The manufacturer of the proposed materials or equipment may be required to acknowledge by written confirmation that the minimum requirements of the specifications are included in the proposal before the award of the bid. EXCEPTIONS Any bidder s exceptions to these terms or conditions or deviations from the written specifications shall be shown in writing and attached to bid form. However, such exceptions or deviations may result in bid rejection.

23 Bid No, SECTION IV: APPLICATION (To Be Completed By Vendor) The undersigned proposes to furnish ab materials, supplies, equipment or services set forth herein subject to all conditions outlined in the REP document, including the general information and instructions, at the prices indicated below: PROPOSAL FORM AND SPECIFICATIONS FOR GENERAL ITEM COSTS: For machines placed in areas that serve City employees. Vendor is free to set standard pricing in areas that serve the general public. TYPE DESCRIPTION SIZE (oz.) PROPOSED Beverages Coke, Dr. Pepper, Squirt, Sprite, Nestea, Diet Dr. Pep Root Beer, Diet Coke, Minute Maid Orange, Diet Sprit Beverages Juice, (orange, grape, apple) Beverages Bottled Water Beverages 2% Milk, low fat, chocolate Beverages Coffee, Hot Chocolate, tea, hot soup Snacks Candy Bars (Snickers, Hershey, M&Ms, Reese s, Babyruth, Redvines) Snacks Chips (plain Lay s, Ruffles, Fritos, Cheetos, etc.) Snacks Prepackaged microwave popcorn Prepared Foods Pastries (pie, sweet roll, pop tarts, muffins, etc.) Prepared Foods Pudding (chocolate, vanilla), yogurt, cottage cheese Prepared Foods Cookies, pretzels, crackers & cheese, granola bars, e Prepared Foods Burritos, wraps, hot pockets, pizza, bagels, egg rolls, I MINIMUM PRICE 12 p % 1 3 1/ h i/a Healthy Options Healthy Options Healthy Options Healthy Options Sandwiches (turkey, cheese, egg salad, veggie, etc.) Canned items (chili, stew, tuna salad w/crackers etc.) Nuts, raisins and other such mixes Packaged fresh fruits/veggies 4 /24V

24 AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND Encore Division Group, Inc. DBA Loyal Vending FOR Placing Vending machines throughout the city s requested locations THIS AGREEMENT is made by and between the City of Beverly Hills (hereinafter called CITY ), and Encore Division Group, Inc. DBA Loyal Vending (hereinafter called CONTRACTOR ). RECITALS A. CITY desires to have certain services and/or goods provided as set forth in the Agreement and in CITY s Request for Proposals ( REP ), Bid No , attached hereto as Exhibit A and incorporated herein ( Scope of Work ). B. CONTRACTOR represents that it is qualified and able to perform the Scope of Works. NOW, THEREFORE, the parties agree as follows: Section 1. CONTRACTOR s Scope of Work. CONTRACTOR shall perform the Scope of Work in a manner satisfactory to CITY and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions. CITY shall have the right to order, in writing, changes in the Scope of Work. Any changes in the Scope of Work by CONTRACTOR must be made in writing and approved by both parties. The cost of any change in the Scope of Work must be agreed to by both parties in writing. Section 2. Time of Performance. CONTRACTOR shall commence its services under this Agreement upon the Commencement Date or upon a receipt of a written notice to proceed from CITY. CONTRACTOR shall complete the performance of services by the Termination Date set forth above.

25 City Manager or his designee may extend the time of performance in writing for to from of The exceed two years terms and conditions two additional one-year terms or such other term not the date of termination pursuant to the same this Agreement. Section 3. Obligations of CONTRACTOR. (a) CONTRACTOR shall maintain service and stock a combination of the following CITY s vending machines at the locations selected premises specified in Exhibit A. by CITY on the (i) A CITY, soft drink machine with at least six (6) selections which soft drink machine shall have a coin changer that accommodate one dollar ($1) bills. to be approved will by f ii) A snack machine which snack machine one dollar ($1) (iii) A bills. with will the product selection to be approved have a coin changer that will by CITY, accommodate carousel multi-purpose cold food microwavable hot food vending machine with the product selection to be approved purpose food machine shall have a both one dollar ($1) and five heating microwavable food. dollar ($5) coin bills; changer that will (iv) A with to CITY, which machine shall have a coin changer that will bills. cold drink machine one dollar ($1) the product selection by CITY, which multi accommodate and a microwave oven for be approved by accommodate (v) A bill changer machine. (b) The vending machines installed pursuant to this Agreement shall remain the property and responsibility of the CONTRACTOR. The vending machines shall not be replaced during the term Agreement except with machines of the same model and with of this number and type of selections, unless such changes are approved writing by the Deputy Director of Finance Administration. At the same no time during the term of the Agreement shall vending machines not be available for use. CONTRACTOR shall make repairs to the vending machines or replace them within twenty-four hours in of CONTRACTOR

26 obtaining written notice of the need for repairs to or replacement of the vending machines. (c) CONTRACTOR shall maintain and service the vending machines installed by CONTRACTOR as follows: (I) Respond to any product change requests made by CITY within one (1) business day. (ii) Maintain all vending machines in good working order; provide service to vending machines on an as needed basis, and emergency maintenance service upon twenty-four (24) hour oral or written notice. (iii) Repair or replace vending machines in the event of damage, loss or destruction and assume any losses for moneys stolen or lost from the machines. (iv) Stock and restock soft drink and snack machines on an as needed basis, but not less than three times a week, based on need as determined by the CITY. (v) Stock and restock the cold food machines with fresh sandwiches and salads as determined by the CITY and according to health department guidelines. (vi) Stock and restock the cold food machines with all other cold food items having a shelf life of more than one week at least once a week with fresh food and remove food stocked the previous week. (vii) Stock carousel multi-purpose cold food/hot food vending machines by 11:30 a.m. on the days such machines are stocked. (viii) In the event a refund is required to be given, CONTRACTOR shall contact the persons for the locations listed in Exhibit A-I, attached hereto and incorporated by this reference. (ix) Provide a petty cash fund for reimbursement of any moneys lost in the vending machines of $ at each location to the designated responsible person listed on Exhibit A. (x) At all times CONTRACTOR s employees perform work required by

27 the Agreement, the employees shall wear neat and clean uniforms identifying them as working for CONTRACTOR. (d) CONTRACTOR shall be responsible for the payment of all required sales taxes which are applicable to the products sold in the vending machines. (e) CONTRACTOR shall obtain and maintain all permits and licenses required by all applicable licensing and regulatory agencies. Section 4. Obligations of CITY. (a) CITY shall provide CONTRACTOR access during normal business hours to CITY facilities listed in Exhibit A of this Agreement for installation and servicing of CONTRACTOR s vending machines on a regular and as needed basis. (b) CITY shall furnish CONTRACTOR adequate space and utility services for the installation and operation of CONTRACTOR s vending machines. (c) CITY shall not change the location of vending machines installed by CONTRACTOR, make any alterations to the vending machines or install or allow the installation of other vending machines during the term of this Agreement unless agreed to by CONTRACTOR in writing. Section 5. Independent Contractor. (a) CONTRACTOR shall pay to CITY for the use of space for the installation and servicing of vending machines the amounts listed in Exhibit A of this Agreement. (b) In the event CITY requests the removal of vending machines or installation of additional vending machines, CONTRACTOR shall decrease or increase the total monthly rental payment to CITY based on the amount specified in Exhibit A of this Agreement. (c) The monthly rental check shall be made payable to City of Beverly Hills and shall be mailed to the following address: City of Beverly Hills Finance Administration 455 North Rexford Dr.,

28 Room 350 Beverly Hills, California (d) CITY may request in writing, as needed, changes in the obligations of CONTRACTOR under this Agreement. Section 6. Assignment. This Agreement shall not be assigned in whole or in part, by CONTRACTOR without the prior written approval of CITY. Any attempt by CONTRACTOR to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect. Section 7. Responsible Principal(s) (a) CONTRACTOR s Responsible Principal set forth above shall be principally responsible for CONTRACTOR s obligations under this Agreement and shall serve as principal liaison between CITY and CONTRACTOR. Designation of another Responsible Principal by CONTRACTOR shall not be made without prior written consent of CITY. (b) CITY s Responsible Principal shall be the City Manager or his designee set forth above who shall administer the terms of the Agreement on behalf of CITY. Section 8. Personnel. CONTRACTOR represents that it has, or shall secure at its own expense, all personnel required to perform CONTRACTOR s Scope of Work under this Agreement. All personnel engaged in the work shall be qualified to perform such Scope of Work. Section 9. Permits and Licenses. CONTRACTOR shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license. Section 10. Interests of CONTRACTOR. CONTRACTOR affirms that it presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the Scope of Work contemplated by this Agreement. No person having any such interest shall be employed by or be associated with CONTRACTOR.

29 Section 11. Insurance. (a) CONTRACTOR shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows: (1) Commercial general liability coverage at least as broad as Insurance Services Office Commercial General Liability occurrence coverage ( occurrence form CG000I, Ed ) with a limit of not less than $2,000,000 (Two Million Dollars) per occurrence. If the insurance includes a general aggregate limit, that limit shall apply separately to this contract or it shall be at least twice the required per occurrence limit. (2) Business automobile liability insurance at least as broad as Insurance Services office form CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 any auto and endorsement CA 0029 (Ed. 12/28) with a limit not less than $1,000,000 (One Million Dollars) per accident. (3) Workers Compensation Insurance as required by the State of California and employers liability insurance with a limit not less than $1,000,000 (One Million Dollars) per accident. fb) CONTRACTOR shall require each of its sub-contractors to maintain insurance coverage which meets all of the requirements of this Agreement. (c) The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a A+;VlI in the latest edition of Best s Insurance Guide. (U) CONTRACTOR agrees that if it does not keep the aforesaid insurance in full force and effect CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONTRACTOR s expense, the premium thereon. (e) At alt times during the term of this Agreement, CONTRACTOR shall

30 maintain on file with the City Clerk a certificate or certificates of insurance on the form set forth in Exhibit B, al:tached hereto and incorporated herein, showing that the aforesaid policies are in effect in the required amounts. CONTRACTOR shall, prior to commencement of work under this Agreement, file with the City Clerk such certificate or certificates. The general liability insurance shall contain an endorsement naming the CITY as an additional insured. CONTRACTOR shall provide CITY with thirty (30) days prior written notice if the policies required under this Agreement wilt be canceled or reduced. All of the policies required under this Agreement shall state that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. (f) The insurance provided by CONTRACTOR shall be primary to any coverage available to CITY. The policies of insurance required by this Agreement shall include provisions for waiver of subrogation. (g) Any deductibles or self-insured retentions must be declared to and approved by CITY. At the option of CITY, CONTRACTOR shall either reduce or eliminate the deductibles or self-insured retentions with respect to CITY, or CONTRACTOR shalt procure a bond guaranteeing payment of losses and expenses. (h) The insurance coverage amounts required under the Agreement do not limit CITY s right to recover against CONTRACTOR and its insurance carriers. Section 12. Indemnification. CONTRACTOR agrees to indemnify, hold harmless and defend CITY, City Council and each member thereof, and every officer, employee and agent of CITY, from any claim, liability or financial loss (including, without limitation, attorneys fees and costs) arising from any intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONTRACTOR or any person employed by CONTRACTOR in the performance of this Agreement. Section 13. Termination. (a) CITY shalt have the right to terminate this Agreement for any reason or for no reason upon five calendar days written notice to

31 CONTRACTOR. CONTRACTOR agrees to cease an work under this Agreement on or before the effective date of such notice. (b) In the event of termination or cancellation of this Agreement by CITY, CONTRACTOR shall remove its vending machines within three business days. CONTRACTOR shall owe CITY a pro rata share of the monthly rent as of the effective date of termination or cancellation. Section 14. CITY s Responsibility. CITY shall provide CONTRACTOR with all pertinent data, documents, and other requested information as is available for the proper performance of CONTRACTOR s Scope of Work. Section 15. Information and Documents. All data, information, documents and drawings prepared for CITY and required to be furnished to CITY in connection with this Agreement shall become the property of CITY, and CITY may use all or any portion of the work submitted by CONTRACTOR and compensated by CITY pursuant to this Agreement as CITY deems appropriate. Section 16. Records and Inspections. CONTRACTOR shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three years. CITY shall have access, without charge, during normal business hours to such records, and the right to examine and audit the same and to make copies and transcripts therefrom, and to inspect all program data, documents, proceedings and activities. Section 17. Changes in the Scope of Work. CITY shall have the right to order, in writing, changes in the scope of work or the services to be performed. Any changes in the scope of work requested by CONTRACTOR must be made in writing and approved by both parties. Section 18. Notice. Any notices, bills, invoices, etc. required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during the receiving party s regular business hours or by facsimile before or during the receiving party s regular business hours; or (b) on the second business day following deposit in the United States mail, postage prepaid to the addresses set forth above, or to such

32 other addresses as the parties may, from time to time, designate in writing pursuant to this section. Section 19. Attorney s Fees. In the event that either party commences any legal action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded. Section 20. Entire Agreement. This Agreement represents the entire integrated agreement between CITY and CONTRACTOR, and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by a written instrument signed by both CITY and CONTRACTOR. Section 21. Exhibits; Precedence. All documents referenced as exhibits in this Agreement and the REP are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. Section 22. Governing Law. The interpretation and implementation of this Agreement shall be governed by the domestic law of the State of California. Section 23. CITY Not Obligated to Third Parties. CITY shall not be obligated or liable under this Agreement to any party other than CONTRACTOR. Section24. Severability. Invalidation of any provision contained herein or the application thereof to any person or entity by judgment or court order shall in no way affect any of the other covenants, conditions, restrictions, or provisions hereof, or the application thereof to any other person or entity, and the same shall remain in full force and effect.

33 California. EXECUTED the 2- day of Af( I 2OJ, at Beverly Hills, CITY OF BEVERLY HtLLS A Municipal Corporation ATTEST: LILI BOSSE Mayor of the City of Beverly Hills, California BYRON POPE City Clerk CONTRACTOR: Insert Contractor Name Insert Title /)/ I- /l7c 31f oi c. 5._ insert Contractor Name Insert Title APPROVED AS TO FORM: APPROVED AS TO CONTENT: LAURENCE S. WIENER MAHDI ALUZRI City Attorney City Manager TATIANA SZERWINSKI Assistant Director of Administrative Services/Finance SHARON L HEUREUX DRESSEL Risk Manager

34 ATTACHMENT 4 PROPOSAL FOR FIRST CLASS VENDING

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36 April 1, 2018 City of Beverly Hills Re: RFP Bid Sivan Levin 455 North Rexford Drive Beverly Hills, CA Dear Sivan: On behalf of the entire First Class Vending organization, I would like to thank you for the opportunity to submit our vending services proposal to the City of Beverly Hills. In this proposal we have endeavored to convey not only our innovative operational details, but also the enthusiasm, professionalism and experience that our First Class Vending team bring to you. We pride ourselves in being the largest independently owned and operated vending company covering California and Nevada. By remaining immune from large corporate infrastructure, we are able to offer you close, personal attention all while maintaining an excellent level of service. Our key features include: * State-Of-The-Art Vending Equipment * Excellent Health & Wetlness Program * Reputabte Technology Dex-Eqz4pment for Fiscal Accountability * Valued Name-Brand Product Availability * Impeccable Customer Service * Con petitive Pricing * Exceptional Service Standards Since it s inception in 1994, we have grown from one vending machine, to thousands of vending machines currently installed and it would give us great pleasure to add you to our prestigious clientele list. Everything in our proposal is open to discussion. Please do not hesitate to let us know what we can do to earn your business. We would appre te the honor to be selected as your vending services supplier, and will dedicate ourselves to exceeding your expectations. VISIT US ON THE WEB... First Class Vending, Inc. mattfirstclassvending.com Direct

37 ABOUT US... First Class Vending is a family owned and operated business. Founded by Matthew and Ryan Marsh in 1994, First Class Vending has remained immune from large corporate infrastructure. Matthew, Ryan and the family of executives and employees are completely accessible to clients and to each other. Your entire team is truly one call away at all times. We instill family values throughout the company and offer outstanding benefits which have resulted in retaining key personnel and low turnover. Most employees have been with the company for many years. first Class Vending has built a solid team of professional Operations Managers, Technicians, Route Drivers, Client Relations Representatives and Marketers that share one common goal: Superior Customer Service. Since its inception, First Class Vending has developed a strong culture built on both respect, career fulfillment and growth. By ensuring our employees are happy, healthy, well compensated and having fun doing their jobs, First Class Vending, in turn, makes certain that our clients are happy and cared for properly.

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39 YOUR CUSTOMER CARE REPRESENTATIVES When it comes to customer service there is no other company that dedicates the time, money and energy that we do. It is quite a huge investment. Upon machine installation, you will receive an assigned Customer Care Representative that will continually be available to you for all your vending needs. Our staff of Customer Relations professionals visit each account every six (6) weeks to ensure an outstanding level of service. Our Customer Relations professionals are on site to improve operations, audit inventory and meet with you to discuss improvements. Our route drivers are experienced, motivated and trained to offer excellent service including merchandising, client troubleshooting and minor technical repairs. Our commitment to Quality Service with Pride is enhanced through our drivers who act as consultants with customers, keeping track of the products that are selling and the price points that effectively increase sales and profits. Our goal is one cati customer support with a two hour response time for maintenance calls. Emergency repair service is offered 24 hours a day, 7 days a week.

40 FACILITIES AND PRODUCTS Each First Class Vending distribution center is strategically located in Los Angeles, Las Vegas, and San Diego, with the master distribution center sitting on five acres of land and encompassing more than 60,000 square feet. Since relocating into this new facility in 2006, the Company is able to warehouse and distribute more national, regional, and healthy brand name products than any other vending company...thus, making them available to our customers at any time. First Class Vending has also invested in larger route trucks that are not the norm in the vending industry. We have a fleet of nearly 200 trucks. First Class not only offers an array of popular national brands, but provides a line-up of good-foryou and tasty food products in the ever evolving healthy snacks category. Client requests for special or unique food and beverage products are also encouraged.

41 _ L_.J L._3 FINANCIAL EXHIBIT First Class Vending is pleased to offer City of Beverly Hills a rental rate of $52.00 (fifty-two dollars) per machine, per month (excludes bill-changer). Any vending machine with sales volume repeatedly being below the paid monthly $52.00 are subject to removal due to low-volume usage. Rental rates are based off of gross sales, less any applicable tax and CRV. First Class Vending provides a monthly statement listing each machine and rental rate. These statements will be delivered together with the full amount of rentals earned for the month by the end of the following month. First Class vending will obtain all licenses, permits, and comply with all government regulations in regards to vending. FIRSICIASSVENDING

42 PRICING STRUCTURE SNACK MACHINE SELECTIONS COLD BEVERAGE SELECTIONS Candy - Candy - Chips - Chips - Reg. Lg. Lg. Healthier Cookies Cookies Pastry Options Reg. Lg. Rice Krispie Treats Fruit Snacks Snacks Reg. Gum/Mints Trail Mixes $1.25 Soda Cans $1.00 $1.50 Soda Bottles $1.75 $1.25 Water l6oz $1.00 $1.25 Water Bottles 2Ooz $1.50 $1.25 Juice - Bottles Bottles $2.00 $1.50 Aloe Drink $2.00 $1.50 Vitamin Waters $2.00 $1.50 Gatorade/Powerade $1.75 $1.25 Tea-Bottles $1.75 $1.25 Original NY Seltzer $1.50 $1.00 Snapple $1.75 $1.25 Energy Drinks $2.75 Crystal Geyser $1.25 HOT BEVERAGE SELECTIONS Coffee, DeCafe Coffee, DeCafe 8oz l2oz Flavor Specialties Flavor Specialties Hot Chocolate Hot Chocolate 8oz l2oz $.65 $.85 8oz l2oz $1.00 $1.25 $1.00 $1.25.Fll9rSVeNG

43 L...J L3 LJ L_ L- I J L._J OTHER INSTALLATIONS (REFERENCES) 1) Cal State Dominguez Hills - (310) rchester@csudh.edu Richard Chester, Director Commercial Services 1000 E. Victoria Street, Carson, CA ) St Joseph Hospital - Kim Norton, Food Service Director (714) lcim.nortonstjoe.org 1100 W. Stewart Drive, Orange, CA ) American Airlines - Troy Glover, Manager (626) troy. gloveraa. corn 7000 World Way West, Los Angeles, CA ) University of California Irvine (949) ptanuci.edu - Lin Tang, Business Manager 531 E. Peltason Drive, Irvine, CA FiRSTCLAS3NDING 1

44 Bid No SECTION IV: APPLICATION (To Be Completed By Vendor) The undersigned proposes to furnish all materials, supplies, equipment or services set forth herein subject to all conditions outlined and instructions, at the prices indicated below: in the RFP document, including the general information PROPOSAL FORM AND SPECIFICATIONS FOR GENERAL ITEM COSTS: For machines placed in areas that serve the general public. in areas that serve City employees. Vendor is free to set standard pricing TYPE DESCRIPTION SIZE (oz.) Beverages Coke, Dr. Pepper, Squirt, Sprite, Nestea, Diet Beverages Beverages Beverages Beverages Snacks Snacks Snacks Prepared Foods Prepared Foods Prepared Foods Prepared Foods Dr. Pep Root Beer, Diet Coke, Minute Maid Orange, Diet Spilt Juice, (orange, grape, apple) Bottled Water 2% Milk, low fat, chocolate Coffee, Nt-Cbcolate, teaf-ht-soup Candy Bars (Snickers, Hershey, M&Ms, Reese s, Babyruth, Redvines) Chips (plain Lay s, Ruffles, Fritos, Cheetos, etc.) Prepackaged microwave popcorn Pastries (pie, sweet roll, pop tarts, muffins, etc.) Pudding (chocolate, vanilla), yogurt, cottage cheese Cookies, pretzels, crackers & cheese, granola bars, e Burritos, wraps, hot pockets, pizza, bagels, egg rolls, MINIMUM 12 16,9 PROPO PRICE 2OO ê% OD 10 ry ci S 1% 31/ % Healthy Options Sandwiches (turkey, cheese, egg salad, veggie, etc.) 4 Healthy Options Canned items (chili, stew, tuna salad w/crackers etc.) 7 Healthy Options Nuts, raisins and other such mixes Healthy Options Packaged fresh fruits/veggies _zc\

45 Bid No SECTION IV: APPLICATION continued The undersigned proposes to furnish all materials, supplies, equipment or services set forth herein subject to all conditions outlined in the REP Document, including the general instructions and information to respondents, at prices indicated in the application: Exceptions or Deviations attached V YES NO Company Name FtQE6 &( O Telephone iz JDflD Z Address ]5 Federal Identification No. k IX f*r&,?\&r 5, %Uc CP j.p Secretary of State No. Provide a list of businesses being served for at least three (3) years. Pccc tc- o-øz v-i Zol IIç flqç/ ce Provide a list of businesses that terminated services in the last three (3) years with reasons for termination. (ç) PI1 (NL?flco..n e pcv oo Rxcx\ t-k- D c?cee Person submitting proposal AOXfk Print Name Title / Signature F.O,B. All prices of the proposal shall be FOB, destination Beverly Hills, California, and delivery to any point within Beverly Hills shall be without additional charge. TAX All proposals shall be inclusive of tax. ACCEPTANCE OF PROPOSAL The City reserves the right to accept or reject any and all proposals and reserves the right to waive technicalities where such action best serves the interests of the City. The manufacturer of the proposed materials or equipment may be required to acknowledge by wnffen confirmation that the minimum requirements of the specifications are included in the proposal before the award of the bid. EXCEPTIONS Any bidder s exceptions to these terms or conditions or deviations from the written specifications shall be shown in writing and attached to bid form. However, such exceptions or deviations may result in bid rejection.

46 SCHEDULE A Equipment Requirements and Locations *jty Hall Employee Lunchroom 455 North Rexford Drive Room 275 beverages snacks SO FOOTAGE (per machine) 32 sq. ft. (per month, per machine) 2.00 *Library 444 North Rexford Drive 2nd floor, staff room beverages snacks 28 sq. ft. %%,co *Police 464 North Rexford Drive Lunchroom beverages snacks 26 sq. ft. z.uo * Roxbury Park 471 South Roxbury beverages snacks coffee/hot chocolate 35 sq. ft. 52.oo * La Cienega Community Center 8400 Gregory Way beverages snacks 28 sq. ft. 5z *public Works 345 North foothill Road beverages snacks 26 sq. ft. 2_oo * *HR Training Room 455 North Rexford Drive 3 floor beverages snacks 26 sq. ft. 5%co * *Public Works Warehouse 9357 Third Street Lunchroom beverages snacks 26 sq. ft. *Serves City employees *

47 I PRODUCTS ACC)R1) CERTRCATE OF LIABILiTY INSURANCE THIS CERTIFICATE 15 ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RiGHTS UPON THE CERTiFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY ThE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER. AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the pollcy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may reqtlire an endorsement. A statement on this certificate does not confer rcihts to the certificate holder in lieu of such en,1nrmnntf PRODUCER )T5ACT Melissa LichtylJohn Dorris Wateridge Insurance Services PHONE FAX Sorrento Valley Rd. (NC, No Ext): I (NC, No): San Diego. CA RI lichtywatetidge.comijdotriswatetidge.com John A. Darns INSURER(S) AFPOROING COVERAGE NMC a INSURER 5Old Republic General Ins. Corp NSUREDFIrst Class Vending, Inc. ln5urerbgttamn Ins. Company Avanti Markets of California 6875 Suva Street INSURERC:F5utanceC0mP!Y Bell Gardens, CA INSURER 0 AllIed World Assurance Co. Inc INSURER C: INSURER F. CQVERAGES CERTIFICATE NUMBER: REViSION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW RAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. tjiier POLICY EP POLICY EXP TYPEOFINSURANCE. POLICYNUMBER qjyyyy pjjjy yy LIMITS A X COMMERCIAL GENERAL LIABILITY 1,000,000 EACH OCCURRENCE 5 DAMAGE TO RENTED CLAMSMADE [X OCCUR 500,000 y y MWZ ,000 MED EXP (Any mm po,son( S PERSONAL&ADVINJURY s 1,000,000 GENt AGGREGATE L MIT APPUES PER GENERAL AGGREGATE S 2,000,000 Xi POUCY - - COMP/OP AGO 5 2,000,000 I i OTHER I COMBINED SNGLE LIMIT 1,000,000 A AUTOMOBILS LIABILITY I lea acai ieyfl S X ANYAUTO y y MWTB3I22O BODILY INJURY(Perpmncn) S 1 OWNED F l SCHEDULED ALLTOSCHIV I AUTOS BODILY INJURY (Per accident S I PRDPERJY DAMAGE jh L 1 A I I I B X UMBRELLA LIAB EXCESS UAB ODD X RNTCN s 10,000 FIRSTC3 CIP In. ( jer eon, ens CCC,R I EACH OCCURRENCE h 15,000,000 MMEj TUU / / fggregate S A WORKERS COMPENSATION t x PER I I 0TH. I I I I STARITE ER AND EMPLOYERS LIABIUTY YIN aryproprieroripartheriexecutne y MWC /2019 1,000,000 ELBACHACCDENT OFFICERPACMSER SYCWDEO? NI A (MandatorylsNH) 1,000,000 E.LDISEASE-EAEMPLOYEi If y, dncribe under DESCRIPTION OF OPERATIONS 1,000,000 belaw POI.ICY LI).ST S _ C Crime / SC. DISEASE 03/01/2019 CrIme 1,000,000 D EPLIID&O / /01/2019 EPU 1,000,000 S DATE (MMIDDFYYYY) 03/27/2018 DESCRIPTIGU OF OPERATIONS I LOCATIONS I VEHICLES (ACDRD WI AddItIonal Ramarks Schedule may be asachad If more space Is required) RE: INSURED S OPERATIONS PERFORMED BY WRITTEN CONTRACT. CITY OF BEVERLY HILLS AND AVANTI MARKETS OF CALIFORNIA ARE NAMED ADDITIONAL INSUREDS WHERE REQUIRED BY WRITTEN CONTRACT WITH RESPECT TO GENERAL & AUTO LIABILITY. GENERAL/AUTO & WORKERS COMPENSATION WAIVERS OF SUBROGATION APPLY PER ATTACHED. CERTIFICATE HOLDER CITY OF BEVERLY HILLS 455 N REXFORD DRIVE BEVERLY HILLS, CA CITYOFB CANCELLATiON SHOULD ANY OF ThE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROViSIONS. AUTHORODO REPRESENTATIVE ACORD 25 ( ) The ACORD name and logo are registered marks of ACORD ACORD CORPORATION. MI rights reserved.

48 DEVIATIONS! EXCEPTIONS 1) RFP states beverages, snacks and a coffee as shown in Schedule A, however the Sample Contract has Section 3, indicating a multipurpose cold food carousel machine and microwave oven to be serviced by 11:30am. Our proposal offer is solely the equipment listed in Schedule A, which is also the existing equipment we have on site. Also in RFP Section Ill-Statement of Objectives item #4, additional machines be mutually agreed upon. Any machines who s sales consistently fall below the amount of monthly rental rates we are paying out, is subject to removal upon notice. 2) First Class Vending is the incumbent vendor with machines currently on site. We wish to continue to operate those existing machines/services. 3) Under Terms and Conditions item 6d, we check all machines as sales volume warrants. If sales dictate daily service, we service daily. If sales dictate service Mon-Wed-Fri, we adjust to that, etc. Our goal is always to have fully stocked, cleaned working machines to increase sales. 4) Under Terms and Conditions item 6g. the termination for convenience should be mutual for both parties. 5) Under Termination Section 13, please change 5 day notice to an acceptable 30 day notice by both parties.

49 First Class Vending Presents... 1 WE WITHIN REACH As a provider of snacks, food and beverages, First Class Vending has an obligation to its customers health and well being and has taken a leading role in providing healthy, nutritional products. First Class Vending is so serious about nuthtion that it has authored a guide called the WELL WITHIN REACH Vending Program! Healthy Vending Suggestions that provide smart eating ideas for your co-workers, friends and family. Since we provide vending services to many leading healthcare, education and government institutions in California, First Class Vending is consistently offering the latest selection of products in healthy snacks, food and beverages. First Class Vending understands that each client is unique and requires specialized refreshment services. After our team of professionals listen carefully to understand each individual clients needs and desires, we develop a comprehensive Get Healthy! Go First Class! Healthy Vending Initiative. FIR&QLASSVENDING,

50 _4 I WITHIN REACH First Class Vending, Inc. is proud to present our Well Within Reach Vending program. We are dedicated to ensuring that our vending machines have healthier products and our customers have the choices to lead a healthy lifestyle. We hope that the information in this package will help you in understanding the Well Within Reach Vending program and that everyone will benefit from a healthier way of life. There are lots of ways to start leadin a healthier lifestyle and many of them don t require you to make drastic changes in your life. You don t have to be an Olympic athlete or marathon runner to enjoy the benefits of living healthier. A healthier lifestyle isn t as demanding as you think, and you can take the steps that work best for you. Taking steps toward llancin your diet and increasing the number of steps you walk each day are just a couple ways to make smarter choices every day. First Class Vending is helping to make a healthier choice simple. Several products will be marked with a color coded spiral. These are products that have been selected for the Well Within Reach program and will get you started to being a healthier you. When you choose a Well Within Reach product, youre making a sound decision. That s because food products in the Well Within Reach program meet nutrition standards based on authoritative statements from the Food and Drug Administration (FDA) and the National Academy of Sciences. Well Within Reach snacks are items that: 35 / 10 / 35 Guidelines Well Within Reach Snacks Contain No More Than: 35% of Calories as Fat (Excluding Nuts) 10% of Calories as Saturated Fat (Excluding Nuts) 35% of Total Weight from Sugar

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53 Peanut - W REACH HEALTHIER SELECTIONS SNACKS 100-Calorie Pack Chips Ahoy Animal Crackers Beef Jerky Cheez-lts Reduced Fat & Whole Grain Chex Mix-Bold Chex Mix-Caramel Chex Mix-Simply Chex Mix-Traditional Cinnamon Toast Crisps Gardettos Reduced Fat Snacks Goldfish Baked Cheddar Snacks Lowfat Pretzels Pirates Booty-Aged White Cheddar Poptart Singles-Brown Sugar Poptart Singles-Cinnamon Poptart Singles-Strawbeny Quakes Cheddar Cheese Rice Snacks Quakes Crunchy Caramel Corn Rice Snacks Rice Knspie Treats Sconza Sugar Free Gummy Bears Sconza Sugar Free Sour Worms Sea Veggies Seaweed Welch s Reduced Sugar Fruit Snacks Buzz Strong Choc Chip Cookies Special K Cracker Chips DOLE FRUIT BOWLS BARS Appleway Bars -3 Types Cereal Bars 3 Types Odwafla Bars -2 Types Clif Bar- Choco Chip Peanut Crunch Clif Bar - Crunch Peanut Butter Clif Z Bars Chocolate Brownie Clif Z Bars - Butter Fiber Bar Oats & Chocolate Kashi TLC Bar - Almond Kashi TLC Bar - Peanut Butter Nature Valley Granola Bar-Peanut Butter Nature Valley Granola Bar-Oats & Honey Nuth Gram Bar - Apple Cinnamon Nuth Gram Bar - Blueberry Nutri Gram Bar - Raspberry Nutri Gram Bar-- Strawberry CHIPS Baked Cheetos Baked Dontos Baked Hot Cheetos Baked Lays Baked Ruffles Cheddar Sour Cream?opchips 33Q Popchips Cheddar Mandarin Orange Popchips Original Peach Slices Popchips Sea Salt & Vinegar Pineapple Wedges Popcbips Sour Cream & Onion Tropical Fruit Popeorners White Cheddar Q*ML_±(REAI. Cheerios Cereal Corn Flakes Cereal Mini Wheat Cereal Raisin Bran Cereal Smart Start Cereal Special K Cereal Oatmeal-Apple Cinnamon Oatmeal-Maple Brown Sugar Oatmeal-Regular NUTS! SEEDS I TRAIL MIXES Blue Diamond Smokehouse Almonds Mr. Nature Unsalted That Mix Mr. Nature Unsalted Energizer Mix Mr. Nature Oriental Mix Peanuts Sunflower Kernels Sunflower Seeds Corn Nuts Original - Corn Nuts Ranch Kars Sweet & Salty Mix Snack 180 Naturals-Blueberry Pomegranate Snack 180 Naturals-Cran Pomegranate Snack 180 Naturals-Pistachio Trail Mix Snack 180 Naturals-Cashew Snack 180 Naturals-Pecan Popcorn&s Butter Rotating Listing Subject To Change Popcomers Cheesy Jalapeno May include nut exclusions Popcomers Kettle Popcomers Sweet Chili

54 WEL WTHIU REACH HEALTHIER SELECTIONS JUICES - Bottle Welch s 100% Apple Welch s 100% Orange Welch s Cranberry Welch s Fruit Punch Welch s Grape Welch s Mango Welch s Orange Pineapple Welch s Watermelon Welch s Apple Cranberry Minute Made 100% Apple Minute Made 100% Orange Minute Made Cran Apple Grape Minute Made Cran Apple Raspberry VS Splash Tropical Blend V8 Splash Berry Blend Aloe Mango Aloe Original Aloe Pomegranate JUICES - Can V8 Vegetable Welch s Grape Welch s White Grape Peach Welch s Orange Pineapple Kern s Guava Kern s Mango Kern s Peach Kern s Pear Kern s Pineapple-Coconut Kern s Strawberry Banana WATER - Bottle Arrowhead l6oz Acuafma 2Ooz Dasani 2Ooz Dejablue 2Ooz Crystal Geyser l6oz FLAVORED WATER - Bottle Crystal Geyser Sparkling Orange Crystal Geyser Sparkling Berry Crystal Geyser Sparkling Lemon Crystal Geyser Sparkling Lime VITAMIN WATER - Bottle Essential Power C Revive XXX Zero XXX Zero GoGo Zero Mega C Zero Rise Zero Squeezed COCONUT WATER - Can Aqua De Coco Mex SNAPPLE - Bottle Mango Strawberry Kiwi Diet Peach Diet Raspberry Diet Arnold Palmer MILKS - Carton 2, Fat Free Silk Soy Chocolate, Vanilla ALTERNATIVE-Can Original New York Seltzer Sparkling Water ISOTONICS - Bottle Gatorade Fruit Punch Gatorade Lemon Lime Gatorade Orange Gatorade Cool Blue Raspberry Gatorade Fierce Grape Gatorade Glacier Freeze Gatorade G2 Fruit Punch Gatorade 02 Grape Gatorade G2 Lemon Lime Powerade Fruit Punch Powerade Lemon Lime Powerade Orange Powerade Grape Powerade Mountain Blast Powerade Strawberry Lemonade Powerade Zero Grape Powerade Zero Berry Powerade Zero Punch TEAS - Can Arizona Lemon Arizona Peach Arizona Raspberry Arizona Green Tea Arizona Mango Arizona Tropical Arizona Strawberry Lemonade Arizona Honey Lemonade ASS? DIET COLA S - Can/Bottle Sugar Free, Fat Free, Carb Free

55 SNACK PRODUCT LISTING HEALTHIER OPTIONS SNACKS CIII Bars CIII Z Bars Fiber One Bars Cereal Bars Odwafla Bars Appleway Bars 3 Types Basils Whole Grain Cookies Nuthgrain Bars -4 Types Special K Cracker Chips Nature Valley Strawberry Yogurt Nature Valley Honey and Oats Bar Nature Valley Peanut Butter Bar Nabisco l00calone Pack Snacks Kashi Bars Animal Crackers Mr. Nature Traii Mixes Baked Lays Sour Cream Chips Baked Lays Chips Baked Rufiles Cheddar Sour Cnn Chips Baked Dontos Baked Hot Cheetos Popchips 5 Flavors Popcorners Sugar Free Sour Worms 5 Flavors Old Tyme Lowfat Pretzels Gardetto Reduced Fat Snacks Chex Mix 4 Flavors Sweet & Salty Mix Ritz Air Cnsps Smokehouse Almonds Rice Krispie Treats Whole Grain Quaker Cheddar & Caramel Rice Cakes Quaker Oatmeal Cups Sugar Free Gummy Bears, Sour Worms Sugar Free Fruit Snacks Dried Fruit Snacks Fruit Cups Reduced Fat Cheese Its & Whole Grain Cinnamon Toast Crunch Cnsps Corn Nuts 180-Snack Naturals Poptart Singles CANDY Twix Snickers M&M Milk Chocolate M&M Peanut M&M Pretzel M&M Peanut Butter Rmsenettes Skittles Starburst 3 Flavors Millcyway 3 Musketeers Peanuts P Nutties Toffee Nuts Gummy Bears Welchs Fruit Snacks Sour Bears Red Vinrs Licorice Beef Jerky Baby Ruth Butterfinger Buffertinger Cups Salami Sticks Sweet Tarts Munch Flar CHIPS Dontos Nacho Cheese Fritos Fntos Chili Cheese Cheetos Hat Cheetos Cheetos Jalapeno Cheddar California Sea Salt Herrs Jalapeno Poppers Vidalia Onion Petals Lays Hot Munchie Mix SunChips Plain SunChips French Onion SunChips Garden Salsa SunChips Harvest Cheddar SunChips TGJF Cheddar and Bacon TGIF Cheddar Sour Cream Poore Brothers BBQ Poore Brothers Jabanero Poore Brothers Pizza Chips Poore Brothers Plain Herrs Multi Grain Herrs Tuscan Garden Pork Rinds Snyders Pretzels Snyders Pretzel Twists Boulder BBQ Boulder Natural Plain Zapps BBQ Ranch

56 SNACK PRODUCT LISTING COOKIES Columbus Cappuccino Duplex Cookies Famous Amos Chocolate Chip Grandmas Chocolate Chip Grandmas Oatmeal Grandmas Peanut Butter Knotts Boysenberry Knotts Raspberry Peppendge Farms Milano Sumnaid Oatmeal Raisen Sunmaid Cranberry Choc Chip PASTIY Dolly Madison Zmgers Dolly Madison Donuts Dolly Madison Coffee Cakes CloverhW Danish Cloverhili Big Texas Cloverhifi Honey Buns Hostess Cup Cakes Kilds Mantecadas Cupcakes Kilds Quesadilla Mrs Freshleys Cinnamon Danish Mrs Freshleys Cinnamon Honeybun Gourmet Taste Cakes SNACKS Popcorn Butter Popcorn Rice Krispy Treats Goldfish Gardettos Reduced Fat Cheese Peanut Butter Crackers Beef Jerky Corn Nuts Original Corn Nuts Ranch Corn Nuts BBQ Corn Nuts Picante Kars Sweet & Salty Mix Chex Mix Traditional Chex Mix Honey Nut Chex Mix Cheddar Chex Mix Bold & Spicy Chex Mix Muddy Buddys Peanuts Cheese Its Vanilla Wafers Poptarts Strawberry Poptarts Cinnamon Brown Sugar Poptarts Cherry Poptarts Blueberry Poptarts Chocolate Chip Sunflower Seeds MINTS 5-Flavors Wild Cherry Spearmint Peppermint Wintergreen Sugar Free Peppermint Sugar Free Wintergreen GUM Winter Fresh Juicy Fruit Doublemint Peppermint Spearmmt Big Red

57 BEVERAGE PRODUCT LISTING WELCHS JUICE BOTTLE Orange 100% Cranberry Apple 100 c Grape Fruit Punch Mango Orange Pineapple Watermelon WELCHS JUICE CAN Grape White Grape Peach Orange Pineapple Mango Cran Apple ARIZONA TEAS Lemon Peach Raspberry Green Tea Mango Tropical Strawberry Lemonade Honey Lemonade MINUTE MADE JUICE BOTTLES Apple Orange Cran Apple Grape Cran Apple Raspberry V-S SPLASH BOTTLES Berry Blend Tropical Blend ENERGY DRINKS Full Throttle Monster Monster Low Carb Monster Zero Carb Monster Ultra Carb Red Bull Red Bull Sugar Free Rockstar 6 Flavors Rockstar Sugar Free KERNS JUICE CAN Guava Mango Peach Pear PineappleCoconut StrawberryBanana AGUA DE COCO FiRsTcLASNDlNG

58 BEVERAGE PRODUCT LISTING SNAPPLE BOTTLE Strawberry Kiwi Mango Diet Tropical Diet Peach Diet Raspberry Diet Arnold Palmer Diet Tropical CALYPSO LEMONADES Ocean Blue Natural Strawberry Kiwi Black Cherry VITAMIN WATER Power C Essential Revive XXX Zero XXX Zero Squeezed Zero Rise Zero GoGo COLUMBUS COLD COFFEE Mocha French Vanilla Forte AWE DRiNK Original Pomegranate Mango WATER BOTTLES Arrowhead Aquafina 20 oz Dasani Dejablue 20 oz Crystal Geyser 16 oz crystal GEYSER AORED BOTTLES Orange Lime Lemon Berry ORIGINAL NEW YORK SELTZER SPARRING WATER 6 Berry Coconut Grapefruit Lemon Lime Orange Original Plain Watermelon FIRSTCLASSVENDING

59 BEVERAGE PRODUCT LISTING COCA COLA CANS Coca Cola Diet Coke Cherry Coke Vanilla Coke Coke Zero Caffeine Free Diet Coke Dr. Pepper Diet Dr. Pepper Sprite Sprite Zero Cherry Coke Zero Cherry Dr. Pepper Ginger Ale Barqs Rootbeer Fanta Strawberry Fanta Pineapple Fanta Orange Fanta Grapefruit Freaca Fuze Tea COCA COLA BOTTLES Coke Zero Cherry Coke Cherry Coke Zero Vanilla Coke Barqs Rootbeer Fuze Tea Dr. Pepper Diet Dr. Pepper Sprite Sprite Zero Fanta Grapefruit Fanta Orange Fanta Strawberry Fanta Pineapple Minute Made Lemonade Minute Made Pink Lemonade PEPSI COLA CM(S Pepsi Diet Pepsi Mountain Dew Mountain Dew Code Red Diet Mountain Dew Mug Rootbeer Lipton Brisk Tea Sierra Mist Wild Cherry Pepsi Orange Crush Grape Crush PEPSI COLA EOTI LES Pepsi Diet Pepsi Wild Cheny Pepsi Diet Wild Cherry Pepsi Mountain Dew Diet Mountain Dew Mountain Dew Code Red Mug Rootbeer Upton Brisk Tea Upton Green Tea Sierra Mist Orange Crush SEVEN 1W CANS & BOTTLES Seven Up Diet Seven Up A & W Rootbeer Diet A & W Rootbeer Sunkist Orange Diet Sunkist Orange Suflldst Lemonade Welchs Grape Cactus Cooler RC Cola Hawaiian Punch A &WCrme Soda Diet A & W Cream Soda Cherry Seven Up Diet Cherry Seven Up Squirt GATORADE BOTTLES Lemon Lime Fruit Punch Orange Cool Blue Raspberry Fierce Grape Glacier Freeze G2 Grape G2 Fruit Punch POWERADE BOTTLES Lemon Lime Fruit Punch Orange Grape Mountain Blast Strawberry Lemonade Grape Zero Berry Zero Punch Zero SPECIALTY SODAS Pop Shoppe Lime Rickey Crooked Oak Gingerale Crooked Oak Rootbeer Dr Browns Cream Soda ORIGINAL NEW YORK SELTZER Black Cherry Lemon Lime Peach Raspberry Rootbeer Vanilla

60 SUSTAINABILITY - GOING GREEN - THE ENVIRONMENT wsmwv A key focus of First Class Vending is to minimize the impact the procurement of goods and services has on the local environment. We are committed to sustainable economic, social and environmental practices in all operations in which First Class Vending is involved. First Class Vending uses ENERGY STAR qualified equipment to minimize electrical consumption, as well as UL rated and utilizing LED lighting. First Class Vending recycles tons of cardboard annually. Within our business practices, we make every effort to Reduce, Reuse and Recycle. 0 First Class Vending utilizes high efficiency lighting throughout its distribution center and corporate facilities. We also maintain a fleet of Hybrid vehicles for our account and management teams and have alternative fuel route vehicles. TCIASSD

61 SUSTAINABILITY - GOING GREEN - SOLAR POWER First Class Vending Leads the Fietd with Quality, Service, and Energy Savings! First Class Vending s innovative thinking and commitment to the Environment is displayed with a 349 kw Solar Electricity Installation at First Class Vending s Bell Gardens Distribution Center in Southern California and has helped to offset almost 100% of it s Energy load. The First Class Vending Distribution Center now has nearly 1300 Solar panels which powers the 4 buildings on the 60,000 square foot First Class Headquarters location. First Class Vending has taken every measure to save energy where we work and on the road. We ye made lighting retrofits and drive hybrid vehicles. We always recycle our cardboard. We recycle where we can including older vending machines to cell phones and printer cartridges. We use EnergyStar vending machines with LED lighting where possible and it made sense for First Class Vending to go to the next level of Energy Saving. The installation of Solar Electricity helps to reduce our carbon footprint and the impact we have on the grid. Using less electricity helps us all avoid rolling blackouts. With rising energy costs throughout our operations energy management is sound business saving fuel, saving money, containing costs and fmding savings and efficiencies anywhere it s possible. First Class Vending wants to meet the sustainability standards our clients set for themselves. We serve many Fortune 100 companies, major universities, airlines, hospitals, theme parks, and many others, and being part of their culture means living up to their examples.

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63 QUALITY ASSURANCE PROGRAM QUALITY SERVICE ASSURANCE A unique feature of the First Class Vending operation is our Quality Assurance Program. Our quality service representatives will inspect all vending machines on a scheduled basis. Also, they will maintain close communications to gather any comments or concerns, and respond to your requests. They are committed to assuring that you continue to receive the outstanding service we are promising. Quality Assurance Program will make sure; That all aspects of our service pledge are followed to include service times and frequencies. That the company s sanitation policy and procedures for all machines are followed continuously. That all machines are merchandised to offer the most popular products that maximize sales. SERVICE STANDARDS First Class Vending, Inc. service personnel will perform the following duties at every service: Stock and service all vending equipment as scheduled. Maintain cleanliness and sanitation. Perform minor mechanical maintenance. Replenish refund banks, make instant refunds or provide refunds through envelope distribution and/or by mail. First Class Vending, Inc. service personnel will: Strictly observe all regulations governing entrance, driving and parking regulations on your premises. Conduct themselves in a courteous manner, however, socializing or disruptive behavior will not be allowed. We are committed to providing whatever is required to assure excellent service. Your service person will be here to service your machines frequently to assure there is fresh product. A staff of qualified technicians that are Nextel dispatched backs him up. Our goal is to respond within two hours for all maintenance calls. We will accommodate any request or requirement for specific service times to the best of our ability. We routinely perform weekend service and maintain 24 hours-deidav. 7-days a week, emergency repair service.

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65 ACCOUNTING PRACTICES First Class Vending Inc. employs an extensive array of computer technology to track revenue, merchandise and the financial equilibrium of the individual machines. Each driver is equipped with a hand held computer that is used to control the entire spectrum of the route including: product checked out of the warehouse, product added to machines, product waste, and actual versus expected revenue. The driver enters all of this information each day and it is downloaded into a central server when he arrives at the warehouse at the end of his day. The key to our ability to monitor the balance of each machine is the information that is retrieved electronically during service and collection. Each machine is equipped with the memory that is accessed by DEX system. DEX is an acronym which stand for Digital Exchange. It is a Uniform Code Standard which was originally created for the grocery industry. The DEX standard was chosen as the foundation for the Vending Industry Data Transfer Standard (VJDTS) in 1990, when the Vending Industry came together with the National Automated Merchandiser Association to create a communication standard to allow vending machines to communicate their transaction information to handheld computers. Each machine keeps track precisely of every cent that goes into the machine. The driver retrieves this information via the DEX technology and this information is also downloaded creating an expectation of cash to be received. When the cash is counted in our vault, the actual money brought in is compared electronically to what is expected and the resulting numbers is the balance of the machine. We know to the nickel if a machine is over of short and our mangers are constantly reviewing the balance as management tool. Drivers are expected to balance to the nickel. We have a policy of zero tolerance in this area. FIRSrC

66 TECHNOLOGY As a technology pioneer in the vending industry, First Class Vending invests significant financial and human capital into harnessing leading edge software and hardware systems that provide complete cash accountability, inventory control, tracking and forecasting, taxes, commissions and financial anaiysis. Utilizing sophisticated handheld computers, each First Class Vending Route Driver electronically downloads all sales, inventory, and cash accounting data from each vending machine. In addition, we closely monitor the exact amount of coins and bills collected from each service visit. Unique product plan-o-grams or customized menu programs can be designed and implemented for each client. A selection of items is developed based on client input, demographic user profiles, and statistical market and trend data. Inventory management, metered machines, cash reconciliation, high speed coin counters, and high security vaults are just a few of the technology systems utilized by First Class Vending to ensure timely and accurate inventory control, machine servicing, and prompt issuing of commissions.

67 TECHNOLOGY First Class Vending is at the forefront of computerization to handle scheduling, accounting and the high volume transactions that are inherent in the vending business. Our handheld computers that monitor our vending machines link into our back office database which allows First Class Vending to maintain just in time inventory levels in its distribution center, so our clients receive the freshest products available. In addition, our system tracks maintenance of the vending machines which means less downtime and fewer inconveniences for you. At any given moment, our operations managers have total visibility into our master distribution center and vending machine inventory. Inventory visibility equals better decisions, faster - which keeps our vending machines stocked with the freshest foods at their peak of flavor and, most importantly, our clients happy.

68 - -- REFUND PROCEDURES First Class Vending offers three options for obtaining a vending machine refund. 1. A refund bank can be set up for immediate on-site refund distribution with the person of your choice. 2. A refund telephone number will be posted on each machine for a mailed refund and for reporting repairs. Refunds will be mailed within 3-4 business days. 3. Log online to sendmyrefund.com to obtain a refund anytime electronically. State of the art equipment and Sure Vend Guaranteed Product Delivery or money back on most snack machines, along with our staff of trained technicians, keeps our refunds at a minimal loss for our company. FIR$TCLASSVENDING

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70 CASHLESS VENDING First Class Vending is pleased to offer FIfE Pay Consumers can download the free mobile app from either the Apple App Store for iphone users or the Google Play Store for Android users. The PayRange app enables consumers to make their transactions at unattended points of sale vending machines, amusement devices, laundry and more quicker and easier. And with flexible funding options including all major credit and debit cards plus the ability to add funds via Apple Pay, consumers are empowered to make mobile payments a reality. Find out more at F

71 First Class Vending...DISTINCTWE AND UNIQUE Magazine Article Features Golden Coin Vendor Operator of the Year READERS CHOICE AWARD Presented To Matthew Marsh First Class Vending, Inc. VENDING OPER OF THE YEAR For Excellence in Customer Service And Dedication to the Vending Industry FIRSICLASSVENDING Ntiaaat Autnmtic MErthndi5inq AnEiation S r F1RSTCLASSVND A

72 VENDING LEADERSHIP Your #1 Vending Service Provider Experience why so many have chosen First Class Vending The largest independent vendor in the California and Nevada areas. IN E V A IN CLOSING First Class Vending appreciates your time in reviewing our company in consideration for your vending needs. We are confident you will be pleased with our high commitment to an exceptional level of service. Our team of dedicated professionals look forward to being of service to you! Sincerely, Matthew Marsh, First Class Vending

73 ATTACHMENT 5 PROPOSAL FOR INTELLI VEND

74 . Bid No SECTION IV: APPUCATION (To Be Completed By Vendor) The undersigned proposes to furnish all materials, supplies, equipment or services set forth herein subject to all conditions outtned in the RFP document, including the general intomiation and instructions, at the prices indicated below PROPOSAL FORM AND SPECIFICATIONS FOR GENERAL ITEM COSTS: For machines placed in areas that serve City employees in areas that serve the general pubhc Vendor is free to set standard pricing TYPE DESCR1PTION SIZE (ocr PROPOSED Beverages Beverages Beverages Beverages Beverages Snacks Snacks Snacks Juice, (orange, grape, apple) Bottled Water 2% Milk, low fat, chocolate Coffee, Hot Chocolate, tea, hot soup Candy Bars (Snickers. Hershey. M&Ms. Reese s. Babymth. Redvines Chips (plain Lays, Ruffles, Fritos, Cheetos, etc.) Prepackaged microwave popcorn Prepared Foods Pastries (pie, sweet roll, pop tarts, muffins, etc.) Prepared Foods Prepared Foods Coke, Dr. Pepper, Squirt, Sprite. Nestee, Diet Dr Pep Root Beer, Diet Coke, Minute Maid Orange, Diet Spat Pudding (chocolate, vanilla), yogurt, cottage cheese Cookies, pretzels, crackers & cheese, granola bars, e Prepared Foods Burritos, wraps, hot pockets, pizza, bagels, egg rolls, MINIMUM / 10 1% % Healthy Options Healthy Options Healthy Options Healthy Options Sandwiches (turkey cheese, egg salad veggie. etc) Canned items (chili, stew, tuna salad wfcrackers etc.) Nuts, raisins and other such mixes Packaged fresh fruftstveggies 4

75 ri Bid No SECTION V: APPLCATlON continued. The undersigned proposes to furnish all materials. supplies, equipment or services set forth harem subject to all conditions outlined in the RFP Document, including the general instructions and information to respondents, at prices indicated in the application. Exceptions or Deviations attached NO Company Name - -. Telephone Adress.(/c /,./. Federal Identification No :Li Secretary of State No i1zf_ Proude a list of businesses being served for at least three (3) years. Provmde a list of busmnesses that terminated services in the last three (3) years with reasons fo termination Person submitting proposal on! r-4eme Title I Signaiure FOB. All prices of the proposal shalt be F 0 8 destination Beverly Hills, Califomia, and delivery to any point within Beverly Hills shall be without additional charge TAX All proposals shall be irrclusive of tax, TANCE0FPRPQSAL The City reserves the right to accept or reject any and all proposals and reserves the right to waive technicalities where such action best serves the interests of the City The manufacturer of the proposed materials or equipment may be required to acknowledge by written confirmation that the minimum requirements oi the specifications are included in the proposal before the award of the bid EXCEPTiONS Any bidders exceptions to these terms or conditions cr deviations from the written specifmcations shall be shown in writing and attached to bid form, However, such exceptions or deviations may result in bid rejection

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77 References 1,) County of Orange: service all county agencies including Sheriff, DA, Public Defender, Probation, Public Works, Social Services, and Health Care Agency Contact: Frank Prado, Purchasing P: ) City of Torrance: service all city facilities including City Hall, Public Works, Airport, Police Dept., Parks, Community Centers, Libraries, and Aquatic Center Contact: Domenica Megerdichian P: ) City of Glendale: service all city facilities including City Hall, Public Works, Parks, Community Centers, Library, Aquatic Center, and Sports Complex Contact: Arlene Thompson P:

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80 B EV 1 AX THE BEST CONSUMER EY:RtENCE I VENDING BEST IN CLASS 45 SELECTIONS 360 UNIT MEETS ANSI AND NEW ADA ri EXCEED3 ttjergy STAR TIER 3 AND 2013 D.O.E. CRANE MERCHANDiSING SYSTEMS

81 than machines made five years ago -.two Umes more energy efficient BEVL1 C \a, t CRANE EERCrf,ND3SjNG S S tms rcrrii3ttiio 3 Ikj EECTRIL ipl fl EIGHT MAINTENANCE SIMPLIFIED I JJts: U. J 3 (1 RELIAE3ILITV, VARIETY. EFFICIENCY. SI EED. meet the operational needs of bottlers and vending operators. Only BevMa4 has been designed to enhance t/?e consumer experience and Tier3 a

82 Key Benefits Eouipment graphics feature the brands of The Coca-Cola Company Equipment is designed to showcase and merchandise the portfolio of the products offered At equipment is performance tested to ensure reliable delivery of quality product Safety certified to UL 541 Constructed to deter theft/vandalism Flexible for the inclusion of multple payment systems Supported by specially trained service personnel Many models are ENERGY STAR certified and feature HFC free insulation Provide customer and consumer satisfaction Cocs-Cois Vc-dr equ went beqan ENERGY STAR ccrtycatwn An 2004 era have fattd CRC free ns0ation srse 2004 Type: Stack ENERGY STAR?: Yes Manufacturer: Royal, Crane. Dixie Narco Rated Amps: 7-10 Dimensions (inches): H 72 W r Weight (lbs: D = Brands per Vender: 6 - S Capacity: Can Ooz Bottle = Other Requirements: N/A Energy (kw/h): Etiiipmer4 Approximate Cord Length: The CocCoIa Company AU trademarks raffomenced 55 Owned by or licensed to The Coca Cola company All th:rd-psrty marks are used with permstisn All trograms. products and visuals ate subiect to charge