REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 22, 2021
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Revenue Agreement with First Class Vending for Food and Beverage Vending Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Revenue Agreement No. 16-734 with First Class Vending, extending the term for six months from June 30, 2021 to December 31, 2021, for a total contract period of July 1, 2016 through December 31, 2021, to continue to install and operate food and beverage vending machines at Arrowhead Regional Medical Center, with no additional changes to the original contract.
(Presenter: William L. Gilbert, Director, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of Amendment No. 2 to Agreement No. 16-734 with First Class Vending will not result in the use of Discretionary General Funding (Net County Cost). Arrowhead Regional Medical Center (ARMC) will continue to receive 34% monthly commission, less sales tax, California redemption value, and refunds for the duration of the agreement. Sufficient revenue is included in the ARMC 2021-22 budget.
BACKGROUND INFORMATION
Approval of Amendment No. 2 with First Class Vending will allow ARMC to continue to offer food and beverage vending machine services to patients, visitors, and staff while completing the formal solicitation for a new contract. The use of vending machines at ARMC ensures that fresh, healthy, and other snack and beverage options are available around the clock to patients, visitors, and staff. These vending services provide an option for food and beverages when the ARMC Café is closed for the night, as well as providing additional options while the Café is open.
The agreement with First Class Vending includes repair and maintenance of the equipment; stocking and maintenance of machines with high quality fresh food and beverages, including healthy snacks and beverages; and ensures that all food and beverages are prepared and dispensed in accordance with all sanitation and health standards. The food and beverage vending machines support fiscally-responsible and business-like operations at ARMC by providing ongoing monthly commission over the term of the recommended amendment.
On September 13, 2016 (Item No. 16), as the result of a competitive procurement, the Board of Supervisors (Board) approved Agreement No. 16-734 with First Class Vending to provide food and beverage vending services, receiving a one-time revenue payment of $20,000 and a commission of 34% of monthly gross receipts, less any applicable sales tax, California redemption value, and refunds, for the period of July 1, 2016 through June 30, 2019.
On June 25, 2019, (Item No. 10), the Board approved Amendment No. 1 to extend the agreement two additional years, effective July 1, 2019, for a total contract period of July 1, 2016, through June 30, 2021, with no other changes to the original agreement.
PROCUREMENT
Purchasing supports the six-month extension to the existing agreement to allow time for ARMC to complete the formal Request for Proposal (RFP) process and related contract negotiations. ARMC is seeking an extension as contract negotiations and other clarifications are needed before a final decision is made and ARMC can issue the Notice of Intent to Award and denial letters. ARMC anticipates selecting a winning proposer and awarding a new agreement no later than December 31, 2021. When finalized, the recommended agreement will be presented to the Board for approval at the soonest possible date following the necessary approvals.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Deputy County Counsel, 387-5455) on June 1, 2021; Purchasing Department (Ariel Gill, Buyer, 777-0722) on June 7, 2021; ARMC Finance (Chen Wu, Finance Budget Officer, 580-3165) on June 1, 2021; Finance (Yael Verduzco, Administrative Analyst, 387-5285) on June 2, 2021; and County Finance and Administration (Matthew Erickson, Chief Financial Officer, 387-5423) on June 6, 2021.