Title
Agreement with Arizona Department of Economic Security for Vending Machine Services (Ordinance S-46692)
Description
Request to authorize the City Manager, or his designee, to enter into an Agreement with the Arizona Department of Economic Security (ADES) Business Enterprise Program (BEP) for provision and operation of vending machines in designated City buildings. There is no financial impact to the City for this item.
Report
Summary
Pursuant to Arizona Revised Statutes §23-504, BEP operators have a priority for merchandising business on State, County, or other local government property for business operations varying from small snack bars to vending machines. This Agreement assigns licensed BEP operator(s) responsibility for merchandising and vending services in accordance with Arizona Revised Statutes §23-504, Arizona's "mini-Randolph-Sheppard Act". This agreement for vending machine services will support approximately 120 locations citywide. The location of the vending machines shall be mutually agreed upon by the City and ADES as required.
Contract Term
This contract will have an initial five-year term starting on or about July 1, 2020, with two five-year option terms, for a total contract term of 15 years.
Financial Impact
Arizona Revised Statutes §23-504 does not allow a municipality or local government to charge BEP operators rent or other assessments associated with the use or occupancy of space for operation of the vending merchandising services over the life of the contract.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.