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RESPONSE - RFP - 7427 VENDING MACHINE SERVICES
PROPOSAL 7427 Vending Machine Services for the City of Fort Collins Proposal Submitted by Front Range Healthy Vending LLC (Vendor # 00013135) Fort Collins, Colorado September 7, 2012 1, ��y- commission may be justified. Of course, the problem with a higher commission is that the customers will probably not buy as many items and may be upset with the higher prices. All of these issues should be discussed and agreed to before determining the commission percentage. In Attachment E. we have included detailed sale price calculations based on commission levels of 0%, 5.00%, 10.00%, 15.00%, and 20.00%; recommended sale prices are also included which are based on rounding the calculated sale prices to the nearest $.25 increment . Please review this proposal and let me know if you have any questions or concerns. As I've tried to make very clear, we are highly rested in providing this healthy food vending service to the City of Fort Collins and will do our best to help you meet your objective of providing healthy vending alternatives to your customers and employees. Based on my many years of business management experience, I've learned that for an agreement to be successful, it must meet the needs of all parties involved. In order to make sure this happens, I would recommend a face-to-face meeting to discuss any concerns, suggestions, or recommendations that you might have. In closing, I would like to again point out some of the strengths and benefits that Front Range Healthy Vending will be able to provide to the City of Ft. Collins: • We are a family owned and operated business within the City of Ft. Collins • We can offer a variety of machines that will best meet the individual location requirements • We would like to work with the City organizations towards the promotion of healthy eating habits • We will provide very professional management of the business, including complete machine servicing when required • We are very flexible in regards to product mix. We would like to work closely with the City to determine the exact product mix and make changes whenever it is in the best interests of the customers and the City • We are very flexible in regards to product pricing and commission levels. We would like to work with the City to jointly determine the best price and commission mix. We would prefer to agree on a specific "pricing formula" to determine the sale prices of all products. (see Appendixes D & E) • We are very willing to work with the City on nutritional education efforts • Our complete focus is on the promotion of healthy food/beverage products and healthy eating habits Based on our specific business model and on the machines and products that we can provide, Front Range Healthy Vending is able to provide the following specific benefits to the City of Fort Collins and their employees and customers: 1. Lowest sale prices (mainly due to low mark-up) 2. Highest overall commission income for the City 3. Best selection of healthy snacks and beverages • Able to vend a wider variety of beverage sizes and shapes including square and rectangular boxes and bottles • Able to vend a wider variety of beverage items (greater than 20) Please let me know if you need any additional information or input. I'll look forward to hearing from you in the near future. Best regards, Pete Mathis Co -Owner and CEO Front Range Healthy Vending LLC e-mail: pete.mathis@earthlink.net Cell: 970 219 3617 Nutritional Data on a Variety of Healthy Snacks (That Meet the Fort Collins Nutritional Specification) August 2012 Nutritional Soecification from Citv (Maximum Limits) Product Weight rams Calories (per serving) Calories from Fat Total Fat rams %Calories from Fat %Total Fat Weight of Sat. Fat Grams %Calories from Sat. Fat %Saturated Fat Sodium (milligrams) Sugar (grams) Carbohydrates rams Protein rams 250 35% 10% 250 20 Bars Clif Bar - Banana Nut Bread 67.9 250 50 6.0 20.0% 8.8% 1.0 3.3% 1.5% 130 43 10 Clif Bar - Crunchy Peanut Butter 67.9 240 60 6.0 25.0% 8.8% 1.0 4.2% 1.5% 240 "t 41 11 Clif Bar - Chocolate Chip 67.9 250 45 5.0 18.0% 7.4% 2.0 7.2% 2.9% 150 ? 1 45 4 Luna Bar - Toasted Nuts N Cranberry 48.0 180 35 4.0 19.4% 8.3% 0.5 2.4% 1.0% 160 12 26 10 Barbara's Fruit & Yogurt Bar - Cherry Apple 42.0 150 25 3.0 16.7% 7.1% 0.0 0.0% 0.0% 125 15 27 3 Zbar- Chocolate Chip 36.8 130 35 4.0 26.9% 10.9% 1,5 ;ti ' 4.1% 100 11 24 3 EvironKidz Crispy Rice Bar - Cheetah Berry 24.0 110 25 2.5 22.7% 10.4% 0.5 4.5% 2.1% 90 7 20 1 Kashl Chewy Granola Bar - Peanut Butter 35.0 140 45 5.0 32.1% 14.3% 0.5 3.2% 1.4% 90 5 19 7 Quaker Chewy Granola - Chocolate 23.8 100 25 3.0 25.0% 12.6% 1.0 8.3% 4.2% 75 8 17 1 Nature Valley Chewy Trail Mix - Fruit and Nut 34,0 140 35 4.0 25.0% 11.8% 0.5 3.1% 1.5% 65 12 25 3 Kellogg's K Pastry Crisps - Strawberry 24.9 100 20 2.0 20.0% 8.0% 1.0 10.0% 4.0% 80 7 20 1 Kellogg's Chewy Bar - Chocolate Chip 23.8 100 30 3.0 30.0% 12.6% 1.0 10.0% 4.2% 75 8 17 1 Kellogg's Chewy Bar - Oatmeal Raisin 23.8 90 15 1.5 16.7% 6.3% 0.0 0.0% 0.0% 80 8 19 1 Kellogg's Nutri Grain Bar - Strawberry 36.8 120 30 3.0 25.0% 8.2% 0.5 4.2% 1.4% 125 11 24 2 Kellogg's Nutri Grain Bar - Blueberry 36.8 120 30 3.0 25.0% 8.2% 0.5 4.2% 1.4% 110 12 24 2 Clif Z Bar - Iced Oatmeal Cookie 36.0 130 35 4.0 26.9% 11.1% 1.0 6.7% 2.8% 105 11 3 Chips Glenn Foods Soy Crisp - Cool Ranch 18.0 70 15 2.0 21.4% 11.1% 0,0 0.0% 0.0% 170 1 9 5 Pirate's Booty - Aged White Cheddar 28.3 130 45 5.0 34.6% 17.7% 1.0 6.9% 3.5% 150 0 18 2 Lay's Baked Potato Chip - Regular 34.0 130 20 2.0 15.4% 5.9% 0.0 0.0% 0.0% 150 2 26 2 Stacy's Pita Chips Simply Naked 28.3 130 36 4.0 27.7% 14.1% 0.0 0.0% 0.0% 140 2 18 3 Cookies & Crackers Back to Nature Mini Vanilla Wafers 32.0 150 40 4.5 26.7% 14.1% 2.0 1 l '+" 6.3% 180 11 24 2 Barbara's Snackimals - Chocolate Chip 31.1 120 35 4.0 29.2% 12.8% 0.0 0.0% 0.0% 70 8 19 1 Fruit Brother's Fruit Crisp - Fuji Apple 28.3 30 1 0.4 3.3% 1.4% 0 0.0% 0.0% 0 4 6 1 Brother's Fruit Crisp - Strawberry Banana 28.3 30 1 0.4 3.3% 1.4% 0 0.0% 0.0% 0 4 6 1 Welch's Mixed Fruit Snacks 25.5 80 0 0.0 0.0% 0.0% 0 0.0% 0.0% 10 11 19 1 Kirkland's Real Sliced Fruit - Fuji Apple 10.0 35 0 0.0 0.0% 0.0% 0 0.0% 0.0% 0 7 9 0 Kirkland's Real Sliced Fruit - Strawberry Banana 12.0 40 0 0.0 0.0% 0.0% 0 0.0% 0.0% 0 6 11 0 Materne Gogo Squeez Apple Cinnamon 90.6 60 0 0.0 0.0% 0.0% 0 0.0% 0.0% 0 12 15 0 Clif Bar Twisted Fruit Strawberry 20.0 70 0 0.0 0.0% 0.0% 0 0.0% 0.0% 5 9 16 0 Tree Top Apple Sauce Cups - Natural 113.2 50 0 0.0 0.0% 0.0% 0 0.0% 0.0% 0 11 12 0 Tree Top Apple Sauce Cups - Cinnamon 113.2 50 0 0.0 0.0% 0.0% 0 0.0% 0.0% 0 11 12 0 Stretch Island Fruit Leather - Grape, Cherry, Appi 14.2 45 0 0.0 0.0% 0.0% 0 0.0% 0.0% 5 12 12 0 Stretch Island Fruit Leather - Raspberry, Strawbe 14.2 45 0 0.0 0.0% 0.0% 0 0.0% 0.0% 1 9 12 0 Betty Crocker - Fruit by the Foot Rolls - Strawber 21.2 80 10 1.0 12.5% 4.7% 0 0.0% 0.0% 45 9 17 0 Kellogg's Fruity Snacks - Cherry, Strawberry, Mix 70.8 80 0 0.0 0.0% 0.0% 0 0.0% 0.0% 5 13 19 1 Fruit 2day - Strawberry Orange 198.1 110 0 0.0 0.0% 0.0% 0 0.0% 0.0% 15 22 27 1 Del Monte 50 - Fruit in Pull Top Can - Mixed and 113.2 50 0 0.0 0.0% 0.0% 0 0.0% 0.0% 10 12 13 0 Red Numbers exceed the Nutritional Limit as set by the City of fort Collin: 9/6/2012 4:53 PM Nutritional Data on Snacks - Seo 4-12 Nutritional Data on a Variety of Healthy Beverages August 2012 Nutritional Specification from City (Maximum Limits) Product Weight (fluid ounces) Calories (per container) Calories from Fat Sugar (grams) Sodium (milligrams) Carbohydrates (grams) Protein (grams) 150 250 Smoothies Zola Acai Smoothie Energy 11 170 15 29 45 36 2 Stonyfield Super Smoothie - Peach 10 230 25 40 140 41 10 Stonyfield Super Smoothie - Strawberry Banana 10 230 30 38 150 40 10 Cascade Fresh Smoothie - Strawberry 10 210 30 32 150 35 10 Naked Juice Smoothie - Mighty Mango (2 servings) 15.2 300 0 30 10 36 1 Naked Juice Smoothie - Green Machine (2 servings) 15.2 280 0 28 15 33 2 Naked Juice Smoothie - Berry Blast (2 servings) 15.2 260 0 29 10 29 1 Sambazon Protein Smoothie - Acai Berry 10.5 234 50 20 20 24 8 Odwalla Smoothies for Kids - Grape Berry 6.75 120 0 27 0 28 1 Odwalla Smoothies for Kids - Mango Pineapple 6.75 120 0 27 30 28 1 Tea Honest Tea - Honey Green Tea 16.9 70 0 18 10 18 0 Honest Tea - Loris Lemon Tea 16.9 60 0 16 10 16 0 Lipton Diet Iced Green Tea 16.9 0 0 0 80 0 0 Kirkland Natural Brewed Green Tea - Lemon, Apple, Peach 16.9 s0 0 12 25 12 0 Tazo Iced Tea - Lemon Ginger 13.8 70 0 14 10 16 1 Milk Silk Soymilk - Chocolate 8.2 140 30 19 75 23 5 Hershey's Chocolate Milk - 2% Reduced Fat 8 200 50 29 130 30 8 Horizon Organic Milk 1%- White 8 110 20 12 115 13 8 Horizon Organic Milk - Low fat - Vanilla 8 150 20 22 130 22 8 Organic Valley Milk 1%- White 8 110 20 12 125 12 8 Organic Valley Milk 1%- Chocolate 8 150 25 22 220 24 9 Juice O.N.E. Coconut Water 11.2 60 0 14 60 15 1 O.N.E. Coconut Water - Pink Guava 11.2 60 0 16 60 18 1 Vita Coco - 100% Coconut Juice 11.1 60 0 15 40 15 0 Amy & Brian Coconut Juice with Pulp (2 servings) 17.5 120 0 14 78 15 0 Tropicana Orange Juice 10 140 0 28 20 33 2 V-8 Low Sodium Vegetable Juice 11.5 70 0 12 200 15 3 V-8 V-Fusion Veg & Fruit - Pomegranite & Blueberry 8 100 0 23 60 25 0 V-8 V-Fusion Veg & Fruit - Strawberry & Banana 8 120 0 25 70 28 1 V-8 V-Fusion + Energy (50%Juice) 8 50 0 10 60 13 0 Tree Top 100%Apple Juice 8 ISO 0 26 20 28 0 CapriSun Super V - Fruit & Vegi Juice Drink (66%Juice) 6 70 0 14 20 18 0 Aloha Maid Natural - Guava 11.5 130 0 34 20 34 0 Jumex Pinapple Nectar 11.3 150 10 30 75 34 1 Switch Sparkling Juice - Watermelon Strawberry 8.3 120 0 28 5 29 0 Switch Sparkling Juice - Black Cherry 8.3 120 0 29 5 30 0 R.W. Knudsen Organic Apple Juice 8 120 0 30 25 30 1 Apple & Eve 100%Juice - Very Berry, Fruit Punch, Apple 6.75 100 0 18 to 21 15 to 25 21 to 24 0 to 1 Apple & Eve Organic Grape Juice 6.75 100 0 21 25 24 0 Water Sparkling Ice - Orange Mango (2 servings) 17 0 1 0 0 0 0 Fruit 2 0 16 0 0 0 70 0 0 Talking Rain Sparkling Ice Spring Water - Orange Mango, Black R 17 0 0 0 0 0 0 La Croix Flavored Sparkling Water - Lemon, Lime, orange 12 0 0 0 0 0 0 Glaceau Vitamin Water Zero - Orange, Lemon, Blueberry 20 0 0 0 0 4 to 7 0 Propel Zero 16.9 0 0 0 80 0 0 Perrier Mineral Water 16.9 0 0 0 0 0 0 Aquafina Purified Water 16.9 0 0 0 0 0 0 San Pellegrino Sparkling Water - Lemon 11.2 150 0 31 0 31 0 Sports and Energy Drinks Sambazon Amazon Energy - Acai Berry 12 140 0 21 20 23 0 Powerade Zero - Fruit Punch (2.5 servings) 20 0 0 0 250 1 0 Gatorade Perform - Lemon Lime (2.5 servings) 20 130 0 34 34 0 Gatorade Perform - G Series - Low Calorie - Berry, Grape, Strawb 16.9 40 0 10 230 10 0 Gatorade Perform - G Series - Orange/Lemon/Fruit Punch 12 80 0 21 160 21 0 Monster Energy Absolutely Zero 16 80 0 0 180 1 0 SOBE Lifewater - Black and blue berry (2.5 servings) 20 0 0 0 63 7 0 Soda Zevia All Natural Soda - Cola 12 0 0 0 20 7 0 Zevia All Natural Soda - Caffeine free Cola 12 0 0 0 20 7 0 Hansen Diet Soda - Tangerine Lime 12 0 0 0 0 0 0 Hansen Natural Cane Soda - Rootbeer 12 0 0 0 0 0 0 Blue Sky Soda - Black Cherry 12 140 0 37 10 37 0 Red Numbers exceed the Nutritional Limit as set by the City of Fort Collins 9/6/2012 4:49 PM Nutritional Data on Beverages - Sept 4-12 Organic, Natural & Healthy Products Beverages Honest Tea s-z Tropicana Orange Juice .................................................................... Vita Coconut Water a1 12oz can Hansen% Soda ;rc Vitamin Water 100% juice ... __ ..... RW Knudsen's Apple Juice 12oz can Blue Sky Soda V8 Juice 1� Stonyfleid Super Smoothle F� T RANGE FRHV18@yahoo.com Organic, Natural & Healthy Products Organic Chips, Pretzels & Popcorn UK140 ru %TO FULLY MA' Kettle Baked Potato Chips Barbara's Cheese Puffs �nRo.U.• ♦.•tu,(j.� „��iT 5+1lTFp 157t1T{n �' STICKS SPELT Newman's Mr. Protein Pretzels i. \ p . . ,�Ifffi t bprQ vatrtr Win Stacy's Pita Chips Boulder Canyon Hickory BBQ Chips Popchlps Potato Chips t Emotions Cinnamon Joy Chips FRRRANGEENDINr-111T i i f. FRHV18@yahoo.com L A :RA :AP Lara Bar Organic, Natural & Healthy Products All Natural Nutrition Bars '� think't ' I� Think Thin Protein Bar i cr...c•,,. PRO S ; .: Power Bar Proteli Plus s BoraBora Fruit & Nut Bar ULDER'S -� / 1` �� • etill.0 '. ..�5 1& 1 Cliff Builder's Protein Bar Balance Nutrition Bar F� T RANGE ENDING, LLC FRHV18@yahoo.com Organic, Natural & Healthy Products The Healthiest Cereal Bars & Crackers Mrs. May's Almond Crunch Late July Organic Crackers o c•� Barbara's Crunchy Granola Kind Fruit do Nut Bar Trio ------...-------------------------- -----_..... _.._...__.. Mrs. May's Trio Bar Annie's Cheddar Bunnies Crispy Wheat Crackers Crispy Cheddar Crackers Annie's Bunny Grahams FRRN.T RANGE CR.JNENDING, LLC FRHV18@yahoo.com Vending Machine Models per Location Location Beverage Machine Model Quantity Snack Machine Model Quantity Dollar Bill Changer Quantity Northside Aztlan Community Center (NACC) SEAGA -SP735R 7 Wide 2 SEAGA -SP432 4-wide 1 SEAGA - CM1050 or CM1250 1 Edora Pool Ice Center (EPIC) SEAGA -SP735R 7 Wide 4 SEAGA - SP432 4-wide 2 SEAGA - CM1050 or CM1250 2 Mulberry Pool SEAGA - SP735R 7 Wide 1 SEAGA - SP432 4-wide 1 SEAGA - CM1050 or CM1250 0 Municipal Office Building - 215 North Mason SEAGA - SP735R 7 Wide 1 SEAGA - SP432 4-wide 1 SEAGA - CM1050 or CM1250 0 Downtown Transit Center (DTC) SEAGA - SP735R 7 Wide 1 SEAGA - SP432 4-wide .1 SEAGA - CM1050 or CM1250 1 Planning, Development & Transportation Bldg SEAGA - SP735R 7 Wide 1 SEAGA - SP432 4-wide 1 SEAGA - CM1050 or CM1250 0 Senior Center SEAGA - SP735R 7 Wide 1 SEAGA - SP432 4-wide 1. SEAGA - CM1050 or CM1250 0 South Transit Center (STC) Open in 2014 SEAGA - SP735R 7 Wide 1 SEAGA - SP432 4-wide 1 SEAGA - CM1050 or CM1250 1 Total Units 12 9 5 Edora Pool Ice Center (Additional Equipment) Coffee and Hot Chocolate 1 Machine - Model to be determined after more information is obtained 9/6/2012 4:42 PM Vending Machine Models per Location - Aug 22-12 swaw n u 11 SEAGA �xemircm' �a�/,e�fcdn • • . . . SP735R 7-Wide Beverage • • • • • Front Range Healthy Vending LLC Fort Collins, Colorado September 4, 2012 To City of Fort Collins: We want to thank you for this opportunity to be considered as a potential supplier to the City of Fort Collins for your vending machine requirements in regards to healthy snacks and beverages. Front Range Healthy Vending LLC is a business that is uniquely focused on providing a vending service for healthy food and beverage products in and around the City of Fort Collins. In the vending industry, there are 3 basic approaches towards the sale of healthy food and beverage items from vending machines: Offer, Recommend, and Promote. 1. Offer Healthy o Offer a limited number of healthy food and beverage alternatives for anyone who wishes to buy them o Healthy options will be at relatively high prices o The typical ratio of healthy versus traditional options is 30% healthy and 70% traditional ■ Very few people will be "converted" to healthier eating habits. Healthy lifestyle people will buy the healthy options and most other people will continue to buy the traditional items 2. Recommend Heal o Offer an expanded number of healthy food and beverage options o Reduce the prices of the healthy items to be closer to the traditional items o Provide some "healthy" advertising and nutritional information o Increase the ratio of healthy versus traditional options to 70% healthy and 30% traditional ■ Some people will be "converted" to healthier eating habits and healthier lifestyles. 3. Promote Healthy o Offer only healthy food and beverage options; no junk food! o Provide the lowest possible prices on all items in order to get people to buy into healthier eating habits ■ Once they get used to healthy items, many (perhaps most?) people will gradually learn to prefer those items o Provide more "healthy" advertising, nutritional information, and healthy eating habits education o Lots of people will be "converted" to healthier eating habits in regards to snack and beverage items t Definition Vendin So brilliant, so efficient and so exclusive - LED lighting is standard only in .Z,„ Highlight your product to it's best adv tage and sell up to 12% more! Save time and money - the gre est technology in vending! LED lighting lasts up to 50,000 hours. That means less waste in the environment and less power consumption at the location. Productivi ange a your pncmg, on all your machines, from your PC! Seaga Smartware egwpmMmamgemeal software Sound good? 9l,,, can make it happen with the Seaga Smart Card and Seaga Smartware software. Change prices, settings, deals and more and give your route driver the card - instant download! Works the opposite, too - diagnose and troubleshoot right from the card! " Guaranteed Vend • Improve e>!a � • Re -credits or refunds • Consistent home position • Sensor self -calibration \\ • Reduces service calls • No give-away products • Keeps track of vends I gi I ant Vend sensor -,Health Conscious Today's he es es are crea ng a errand for healthy vended items, too. Keep your customers safe and give them the selection they want. Vend milk , yogurt and dairy products without concern. . —,,; !/r.-,,,;,,,,, has complete health and safe control for perishable products. 80% of employees say that they consider on -site offerings of snacks and beverages a benefit to them. Encourage their purchases by using the Jackpot settings on . //',.- Meal deal settings are also available. Indoor installation only. Specirications are subject to change without notice. Beverage Vendor Height: 72" (183 cm) Width: 35" (89 cm) Depth: 37" (93 cm) Weight: 698 lbs. (317 kg) Electrical: 115 VAC or 220 VAC Selections: Maximum: 42 Standard: 35 Standard Capacity*: 210 Pricing: Individual from $0 to $999.95 Interface: DEX and MDB Seaga Smart Card Pc with Seaga Smartware Lighting: Energy efficient LED lighting system Customer Display: 20 character, 2-line programmable * Standard Coil Configuration 6, , 6 6, 6 0 6)©©0 1.6,1,6_ 0 0 0 0 0 ;6 g 1u 1 (f) 1,C6 1'76�)6) 0 0 0 0 0 0 0 col�,us © SP Lit a ® STFD. ROHS COMPLIANT //�� =SM A 700 Seaga Drive, Freeport IL 61032 call: 815.297.9500 email.• info @seagamfg. cam visit: seagamfg.cam • SEAGA 1xenuzm I& &MI041 asas SP432 4-Wide Snack ■�i ■ m ■m ago • • • • • • • • • • Definition So brilliant, so efficient and so exclusive - LED lighting is standard only in .Z ,rrcm rW1,.✓;.„! Highlight your product to it's besOe ntage and sell up to 12% more! Save time and money - the gretechnology in vending! LED lighting lasts up to 50,000 hours. That means less waste in the environment and less power consumption at the location. U771 rrra i , Change all your pricing, on all your machines, from your PC! Seaggaa Smrfotre egaipmau -map-stsodwve Sound good? . //',. can make it happen with the Seaga Smart Card and Seaga Smartware software. Change prices, settings, deals and more and give your route driver the card - instant download! Works the opposite, too - diagnose and troubleshoot right from the card! f 1 I 1 • improve Reliability • Re -credits or refunds • Consistent home position • Sensor self -calibration • Reduces service calls \ • No give-away products • Keeps track of vends U Igilant Vend sensor I 80% of employees say that they consider on -site offerings of snacks and beverages a benefit to them. Encourage their purchases by using the Jackpot settings on .'/,. l vnuicnr (-c✓/.r4li•✓e! Meal deal settings are also available. a Indoor installation only. Specifications are subject to change without notice. Snack Vendor Height: 72" (183 cm) Width: 35" (89 cm) Depth: 37" (93 cm) Weight: 470 lbs. (213 kg) Electrical: 115 VAC or 220 VAC Selections: Maximum: 56 Standard: 32 Standard Capacity*: 435 Chip: 128 Candy: 267 Pastry: 40 Pricing: Individual from $0 to $999.95 Coils: Dual coils standard Interface: DEX and MDB Seaga Smart Card PC with Seaga Smartware Lighting: Energy efficient LED lighting system Customer Display: 20 character, 2-line programmable * Standard Coil Configuration Other configurations available �CEt���s SP LISTED `t LISTED ROHS COMPLIANT 47S�EMA" 700 Seaga Drive, FreeportX 61032 call. 815.297 9500 email.-info@seagamfg.com visit. seagamfg.com No Text CM1050 The most economical changer on the market! Great f this ideal for small vending locations. Designed for nic quarter dispensing, or all quarters or even tokens. This i $1 or $5 Bills and features a change catcher - the only t class to do so. Dual steel locks and all steel constructi changer secure. • Large $120 Capacity • Changes $1 or $5 to Quarters or Quarters, Dimes and • Can be Used for Tokens • Mounts to Vending Machine or Wall • Fused Circuitry • Coin Catcher • Sold Out Light • Roller Bearing Slide -Out for Instant Servicing TWidex19.5Highx11.25"Deep(18cmx50cmx29cm) Add convenience to any location,, large or small! CM1250 Large to medium locations - for whatever you ve this high capacity changer. Abundant $250 hoppe quarters or tokens for $1 or $5 bills. The LED reac with your customers that the machine is ready fo will be dispensed, such as $5 = 20 Quarters - or it coin catcher provides an easy and attractive way to • Large $250 Capacity • Changes $1 or $5 to Quarters • Rotary Delivery System • Can be Used for Tokens • Mounts to Vending Machine or Wall • Large Coin Hopper for High Volume • Strong Metal Construction • Dual Steel Locking System • Fused Circuitry • Coin Catcher • LED Readout 8.75" Wide x 21" High x 10.5 Deep (22 cm x 53 cm x 27 cm) Indoor installation only Specifications subject to change without notice Cris SEAGA 4?9 TTT TWIN TASTE TECH TILTING PLATE POWER BOOST 4d POWER BOOST Description Cristallo is a completely automatic vending machine with high performance, designed to ensure the best quality espresso and to reduce maintenance and service. Technologically advanced and extremely user-friendly, it offers up to 16 different beverages. It is equipped with the new Saeco TwinTasteTech brewing unit that allows the dispensing of both paperless fresh brew coffee and espresso coffee without any software or mechanical presetting. The product can be selected by simply pressing a button on the direct access keypad. Large locations will get the most benefit from the Cristallo. Technical data Cristallo Structural specifications Dimensions (h x w x d) - 72" x 23" x 24" Weight 232 tbs. Electrical specifications Power supply 120 V/60 Hz Power consumption 1250 W Water specifications Boiler material nickel/brass Water connections Water connection 3/4" (1-8 bar) Water supply standard: water supply - optional: independent water tank kit Independent water tank 2 tanks - 4 gallons each Other specifications Cups (h 2.75") 550 Available cups o 2.75" or 3" Stirrers 550 Available stirrers 3.5" - 4" - 4.5" Coffee bean container 1 Instant product container 5 Sugar container 1 Number of selections 16 Number of preselections 4 Mixer 5 Brewing unit 10 gram Canisters capacity Coffee beans 9.25 lbs. Instant coffee 1.75 lbs. Milk 6 lbs. Chocolate 12 tbs. Tea 8.5 lbs. Barley 1.75 lbs. Sugar 9 lbs. Main features • Automatically dispenses cups, sugar and stirrers or set to No Cup option • Adjustable closer - 6 grams to 10 grams • Saeco Brewing Unit with new pre -heating system Saeco Power Boost: top quality espresso from the first dispensing, easy cleaning and maintenance • Paperless fresh brew and/or espresso coffee dispensing from ground coffee or coffee beans thanks to Saeco TwinTasteTech brewing unit • Tilting main plate to allow direct access to all the internal components (Saeco Tilting Plate) • Compatible with all industry standard payment systems • DEX Compatible • Easy ordinary maintenance thanks to the 5-button keypad as standard • Predisposition to fit new powder dispensing system Saeco Easy Dry • Customizable settings SEAGA 700 Seaga Drive, Freeport IL 61032 phone: 815.297.95o0 visit: seagamfg.com email: info@seagamfg.com Saeco Vending S.p.A. - Localita Casona, 1066 - 40041 Gaggio Montano, Bologna - Italy Tel.: +39 0534 7741 - Fax: +39 0534 774808 - www.saeco.com As our Company is constantly involved in the continuous improvement of its production, aesthetic characteristics and dimensions, technical data, equipment and accessories can be subject to variation. For this reason the manufacturer reserves the right to make any changes without prior notice. The State -of -the -Art Front Range Healthy Vending System FRONT RANGE Keep your employees in the office! Keep your customers happy! 0 It's a Healthy Snack Machine! It's a Healthy Drink Machine! It's a Healthy Entree Machine! It's a Healthy Side Dish Machine! *ft, - tiIf Now YOU Can Provide Better "Fuel" For Those You Depend On Most! Q�DUDLy v Tired & Unproductive Employees Are No Longer An Issue! VISA -�icav DISCw VER E�RES Machine accepts all major credit cards Finally... Healthy Options For Employees And Customers! Now You Can Provide High -Demand, Name -Brand Healthy Products That Everyone Will Appreciate! Healthy Snacks Keep Hungry Employees On -Site By "Dining At Their Desk" Promote Healthier Lifestyles & Eating Habits in the Workplace Improve Company Morale by Providing Healthy Products That Are Easily Accessible & Affordable To Everyone Four High -Capacity Product Centers Credit/Debit Card Capability —31 Holds Almost 420 Products! —31 For Ease & Convenien(e! Remote Machine Monitoring -), Ensures Timely Service! LED Illuminated Product Windows _3� Well lit During The Evening! CFC Free Modular Cooling System —30 Environmentally Safe; Electrically Efficient! -.� Fully Electronic Payrrnt/Medp-T Console!! • Credit/Debit Card Reader ® $1, $5, $10 & $20 bill acceptor/stacker • Coinco coin changer 00.0 0000 0000 0pricing from .05C to $99.95 0000 0000 0 Easy -touch 20-button keypad • Individual electronic pricing for each selection • Computerized cash, vend & sales record 0 Customer -friendly LCD display Healthy Drinks A. Healthy Entr6es & Side Dishes Twee ri 010. (SMACKS 0 1 inn „ Y ►fending; � � :�C 1 !UL 1W �oRl �nV HealthyYOU'M Vending System Specifications Height ............... 72" Depth .................... 30" Width................52" Weight ............ 760 lbs. Selections Healthy Snacks- 21; Healthy Drinks- 8; Healthy Entrees & Side Dishes- 16 Voltage ....................... 110-120VAC 1 60 Hz - 4.5A Purchasing Department City of Fort Collins �L COLLEGEAMERICA Established in 1964 September 4, 2012 Re: Front Range Healthy Vending, LLC To Whom It May Concern: It has been brought to my attention that Front Range Healthy Vending is attempting to become a vending machine provider for the City of Fort Collins. I am writing this letter in support of Pete and Brian Mathis, owners of Front Range Healthy Vending. Pete and Brian have been our vendors for healthy snacks and beverages for several months. Their machine on site at our Ft. Collins campus gets a lot of use and Pete and Brian are very attentive to needs of our staff and students. I know if there is a mechanical issue with their machine or a favorite item is out of stock, Pete or Brian will be responding in a timely manner. CollegeAmerica is very satisfied with the customer service Pete and Brian provide, in addition to offering a great selection of healthy snacks and drinks. I am pleased to recommend Front Range Healthy Vending to the City of Fort Collins for consideration of a vending contract. Jdel V. ExePve Director CollegeAmerica Fort Collins CollegeAmerica Fort Collins 4601 South Mason Street Fort Collins, Colorado 80525 Phone (970) 225-4860 Fax (970) 225-6059 CollegeAmerica Denver 1385 South Colorado Blvd., 5th Floor Denver, Colorado 60222 Phone (303) 300-8740 Fax (303) 692-9156 CollegeAmerica Colorado Springs 3645 Citadel Drive S. Colorado Springs, Colorado 80909 Phone (719) 622-3600 Fax (719) 637-0806 CollegeAmerica Cheyenne 6101 Yellowstone Road, Suite 101 Cheyenne, Wyoming 82009 Phone (307) 637-2044 Fax (307) 432-0559 www.coIIegeamerica.edu Although we are willing to offer all 3 options of healthy vending services, our strong preference is towards Option 3 which we feel will have the greatest long term impact on the promotion of healthier eating habits. Recommended Business Plan for the Promotion of Healthv Snacks and Beverages for the Ci In order to effectively promote healthy snacks and beverages to people whom are typically satisfied with traditional "soda and candy" vending products, a more focused approach is required, and also a strong commitment to "stay the course". • Requirements o Products must taste good o Products must have good nutritional value o Products must be affordable ■ The average person is willing and able to spend $1.00 on a snack or beverage ■ $1.00 is considered by most customers as being affordable; over $1.50 is frequently considered to be expensive for vending machine products ■ It is always good to have some "low cost" alternatives for those people who really don't have much money to spend o Product prices should seem fair and reasonable to the customers ■ In comparison to traditional snacks and beverages in vending machines ■ In comparison to healthy products in convenience stores ■ Prices should be as close as possible to grocery store prices • Strategy (Use the Wal-Mart strategy of low prices = high volume) o Select products that taste good and are also nutritionally healthy o Select mostly well known products, not exotic or trendy products that have limited market appeal (and higher cost) o Select mostly low cost and medium cost products that people commonly buy o Purchase the products as inexpensively as possible from large suppliers that offer very competitive prices ■ Sam's Club and Costco for standard items ■ UNFI and other large wholesalers for other items o Use an aggressive pricing strategy ■ Utilize low mark-ups and low commission rates to begin with ■ After 6 months or so, consider raising prices slightly once the customer base has "bought into" the healthy food concept ■ Always keep prices low enough to be considered good value! • Price should be less than convenience stores if possible o Provide promotional materials/education/samples to explain and reinforce the benefits of nutritional snacks and beverages August ? F. 201' CI[\ of [:on Collins Purchasing I )epartment 2 15 North Mason St. Fort Collins. CO 80524 To %%hom it mas concern. am \s riting this letter of reference on behalf of Front Range HealthN Vending, %%ho is competing to provide health\ vcndim_ alternatives to customers at several cit\ establishments. I have had the distinct pri\ ilege of \corking %%ith, and for. the proprietors of Front Range Health\ Vending for the past m o \ cars. As a local independent business o\s ner pros idinealth Mana--ement Seri ices to a variety of families and corporations_ I \sould highl\ recommend them to serve the healthN \ending needs throughout the cite of Fort Collins. ` Has in--, been in a service indusu\ for the past 20 \ears, there are se\eral qualities that I feel separate one service organization from another. Qualities such as dependabilit\. diligence. faithful. tlezible. responsible and thorou hnc„ arc a tc%% that come to mind. t hese qualtuc and mans more trul\ define the famih that o\vns and operates Front Range I feaith\ Vending. I also believe that their commitment and tocus on pros idin_ health\ alternatives to adults, children and families on the go is unique in our market place. and could complement the Cit\ of Fon Collins' effort to pro%ide healthier alternatives. I highly recommend Front Range Health\ Vending to the Cit\ of Fort Collins. and believe that the\ s+ould be a great partner to have in promoting a healthier life style. Thank sou for \our time and consideration. If I can be of service please don't hesitate to call me at 970_225_0196. Sincerely, A. Nloddrinw_ C Chenoweth & Associates Business Consulting "Helping you take your strategy to the bottom line" 2250 Woody Creek Circle, Loveland, CO 80538 • Phone 970/461-8223 • Fax 970/461-8224 Email: danchenoweth(a�att.net • www.chenoweth-associates.com August 25, 2012 To Whom It May Concern at City of Fort Collins: It is my understanding that Pete Mathis and the Mathis family are bidding on 22 healthy snack and beverage vending machines for the City of Ft. Collins. Mr. Mathis has asked that I provide a letter of recommendation. I have known Pete and his family for over 30 years. Pete and I worked together at ESAB North America when it was located in Fort Collins in the 1980's (subsequently re -named Wolf Robotics) and I have kept in contact with him ever since. Pete has extensive national and international experience in heavy equipment manufacturing and sales. He is responsive to customer needs and extremely conscientious. If he makes a promise, he will fulfill it! In addition, he is very focused on fitness, exercise and healthy eating styles for himself and others. I highly recommend you consider him as one of your healthy snack vendors. Pete indicates that you are looking for local business references. I do not put my own personal reputation on the line for everyone, but I certainly will for him. Following are my credentials regarding local and community involvement: • We lived in Fort Collins in the 1980's and I was a member of one of the early Leadership Fort Collins classes. We moved from Fort Collins to Denver and lived there in the 1990's, returning to live in Loveland in 2000. • I am the owner and sole proprietor of my own consulting business. • I am a member of the Loveland Chamber of Commerce. • I have served on the Boards of Directors of the Colorado Society of CPAs, the Loveland Rotary Club, and Larimer County Palliative Care. • I was previously the Treasurer of the American Society of Training and Development — Northern Rockies Chapter (ASTD-NRC), and we are a member of both the Loveland and Fort Collins Chambers of Commerce. • In 2011 I conducted a business ethics seminar for the Leadership Academy (LEAD 1.0) which was a joint initiative of the City of Fort Collins, Larimer County, and Poudre School District. I worked closely with Doreen Kemp, Training Coordinator for the City of Fort Collins, and she can vouch for my personal reputation. If you have further questions or further information is required, please don't hesitate to contact me. Regards, DAN CHENOWETH Visit L,VAnge1S, 4�j SERVICES September 5, 2012 To Whom it May Concern: I am offering my recommendation to you regarding Front Range Healthy Vending and its owners, the Mathis family. A healthy lifestyle is not something this company takes lightly, it is the way the owners live their own lives. This innovative company wants to positively influence how its neighbors and fellow community members choose to fuel their bodies in this busy day and age. Providing fellow Coloradoans a local choice is not only important to the Mathis family, but also to this Colorado native. I know locally owned companies are important to the people who live here because Visiting Angels, the company I work for is also locally owned. The support it receives because of its local connection is impressive. My own family built a successful Fort Collins business by hard work starting back in the 1950's. Coincidentally, so did the Mathis family, in the Poudre Canyon. There is no doubt Front Range Healthy Vending is an excellent choice for the future. Please don't hesitate to contact me with any questions, clarification or further explanation. Sincerely, Jennifer Jackson Community Relations Representative, Visiting Angels :, r 1-'�-=� ,�,Iswhocare.com 970-292-5668 CHASE August 30, 2012 City of Fort Collins Purchasing 21S North Mason St. Fort Collins, CO 80524 Re: Front Range Healthy Vending To Whom It May Concern: This letter is to provide a personal recommendation to the City of Fort Collins for the placement of healthy vending machines by Front Range Healthy Vending. I have had the privilege to work with Pete over the past year. Pete's business model and vision for Front Range Healthy Vending supports Fort Collins' initiative for an alternative to unhealthy snacking. Pete is 100% vested in his business; it is locally operated and family owned. Pete is an advocate for a healthier Fort Collins. His daily active and healthy lifestyle is a reflection of the products and services Front Range Healthy Vending provides. ! am confident Pete's business management and service background will further open the possibilities for Front Range Healthy Vending to establish a positive business relationship, benefiting a healthier Fort Collins community. Sincerely, �� f - Brian Hopkins Branch Manager Chase Bank N.A. *This letter is a personal recommendation for Front Range Healthy Vending. This letter is no means a recommendation by Chase Bank or JP Morgan Chase. Chase Investment Services Corp. • 1864 N. College Ave • Fort Collins, Colorado 80S24 Securities (including mutual funds and variable annuities) and investment advisory services are offered through Chase Investment Services Corp. (CISC) or affiliated brokerage firms. Annuities and insurance products are provided by various insurance companies and offered through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. CISC, a member of FINRA/SIPC, and CIA are affiliates of JPMorgan Chase Bank, N.A. Products not available in all states. NOT A NOT INSURED BY ANY FEDERAL NOT GUARANTEED MAY GO DOWN DEPOSIT NOT FDIC -INSURED GOVERNMENT AGENCY BY THE BANK IN VALUE Soukup, Bush & Associates Certified Public Accountants, P.C. August 29, 2012 Purchasing Department City of Fort Collins To whom it may concern, Our firm prepared the 2011 federal and state tax returns for Pete and Maria Mathis and has a continuing professional relationship with the couple. Additionally, our firm has assisted Pete and Maria with their business, Front Range Healthy Vending LLC. In our firm's interaction with Pete and Maria, they both have conducted themselves with the utmost of professionalism, courtesy and class. Both have significant years of experience in business ownership and management and are committed to their family businesses. Recently, we have assisted Pete and Maria with tax and bookkeeping assistance as it would relate to Front Range Healthy Vending LLC and in our discussions with them it was clear that they approach the business in their consistent professional hard-working manner which considers the needs of potential customers focusing on healthy lifestyles. It has been our pleasure to work with Pete and Maria. We look forward to the continued growth of their business and working with both of them in the future as they are outstanding quality clients of our firm. Dan W. Soukup 2032 Caribou Drive, Suite 200 (970) 223-2727 Fort Collins, Colorado 80525 Fax (970) 226-o813 Proprietary Information of Front Range Healthy Vending Pricing Strategy and Commission Recommendations Suggested Pricing Strategy (to be determined in conjunction with City of Ft. Collins) 1. Use the Wal-Mart strategy of high volume and good value at low prices 2. Keep prices as low as possible (particularly in the beginning) in order to promote the transition from "junk food to healthy food" a. Use a standard mark-up of $.40 for each item (this is very low for the vending industry) b. Possibly increase mark-up slightly in 6 months or so depending on level of sales and customer's acceptance of products 3. Offer many items at $1.00 sale price versus $1.10 or $1.15 a. Based on various studies regarding spending habits, people are more apt to use 2 - $1.00 bills to buy 2 - $1.00 items instead of using 3 - $1.00 bills to buy 2 - $1.10 items. Psychologically, it seems to them that they are actually spending $3.00 for the 2 - $1.10 items (even though they receive $.80 in coins) b. We want the customers to feel good about purchasing more than 1 item 4. Asa general rule, try to keep prices in multiples of $.25 a. A quarter is the most common coin that people typically carry and it is less "fuss" than using several nickels or dimes b. If total cost including delivery cost, mark-up, sales tax, and commission is less than $.85, then set the sale price at $35 i. If total cost is between $.85 and $1.14, set the price at $1.00 ii. If total cost is between $1.15 and $1.34, set the price at $1.25 iii. Etc. Suggested Commission Strategy (to be determined by City of Ft. Collins) 1. Keep commission rates relatively low (at least in the beginning) in order to keep prices as low as possible to help promote sales volume 2. Perhaps 10% to 15% to start with 3. Increase commission rates (and associated sales prices) after a few months a. Increase rates by 5% at all locations and keep track of the impact on sales b. If sales drop off significantly, commission rates possibly should be returned to the original level c. Wait a few more months for the customer's to "buy into the healthy snack concept" and then increase commission rates again The attached sheets provide all the data for the sales price calculations for both snacks and beverages based on commission rates of 0%, 5.00%, 10.00%, 15.00%, and 20.00%. Proprietary Information of Front Range Healthy Vending Variable Pricing Levels and Commission Rates for Variety of Healthy Snacks Mark Up 0.40 1Sale Price Calculation = product cost + product delivery cost + mark-up + sales tax to City/State + credit card fees + co mission to City Sales Tax % 2.25% Sales Prices are rounded up to the nearest $.05 Credit Card Fee % 0.0% _-- 0%Commission 5.00%Commission 10.00%Commission 15.00%Commission 20.00%Commission Product Est. Cost Mark -Up Commission Calculated Commission Calculated Commission Calculated Commission Calculated Commission Calculated (w/ deliveryl Sales Price Sales Price Sales Price Sales Price Sales Price Bars Clif Bar - Banana Nut Bread 0.87 0.40 0.00 1.30 0.07 1.40 0.15 $ 1.45 0.23 1.55 0.33 1.65 Clif Bar - Chocolate Chip 0.88 0.40 0.00 1.35 0.07 1.40 0.15 $ 1.50 0.23 1.55 0.33 1.65 Luna Bar - Toasted Nuts N Cranberry 1.00 0.40 0.00 1.45 0.08 1.55 0.16 $ 1.60 0.26 1.70 0.37 1.85 Lune Bar - Vanilla Almond 1.00 0.40 0.00 1.45 0.08 1.55 0.16 $ 1.60 0.26 1.70 0.37 1.85 Zbar - Chocolate Chip 0.64 0.40 0.00 1.10 0.06 1.15 0.12 $ 1.20 0.20 1.30 0.27 1.35 Kash[ Chewy Granola Bar - Peanut Butter 0.54 0.40 0.00 1.00 0.05 1.05 0.11 $ 1.10 0.17 1.15 0.25 1.25 Quaker Chewy Granola - Chocolate 0.23 0.40 0.00 0.65 0.04 0.70 0.08 $ 0.75 0.12 0.80 0.17 0.85 Nature Valley Chewy Trail Mix - Fruit and Nut 0.31 0.40 0.00 0.75 0.04 0.80 0.09 $ 0.85 0.14 0.90 0.19 0.95 Kellogg's K Pastry Crisps - Strawberry 0.24 0.40 0.00 0.70 0.04 0.70 0.08 $ 0.75 0.12 0.80 0.17 0.85 Kellogg's Chewy Bar - Chocolate Chip 0.18 0,40 0.00 0.60 0.03 0.65 0.07 $ 0.70 0.11 0.75 0.15 0.75 Kellogg's Chewy Bar - Oatmeal Raisin 0.18 0.40 0.00 0.60 0.03 0.65 0.07 $ 0.70 0.11 0.75 0.15 0.75 Kellogg's Nutri Grain Bar - Strawberry 0.31 0.40 0.00 0.75 0.04 0.80 0.09 $ 0.85 0.14 0.90 0.19 0.95 Kellogg's Nutri Grain Bar - Blueberry 0.31 0.40 0.00 0.75 0.04 0.80 0.09 $ 0.85 0.14 0.90 0.19 0.95 Clif Z Bar - Iced Oatmeal Cookie 0.49 0.40 0.00 0.95 0.05 1.00 0.11 $ 1.05 0.17 1.10 0.23 1.15 Chips Pirate's Booty- Aged White Cheddar 0.40 0.40 0.00 0.85 0.05 0.90 0.10 $ 0.95 0.15 1.00 0.21 1.05 Lay's Baked Potato Chip - Regular 0.43 0.40 0.00 0.85 0.05 0.90 0.10 $ 0.95 0.16 1.05 0.22 1.10 Stacy's Pita Chips Simply Naked 0.71 0.40 0.00 1.15 0.06 1.20 0.13 $ 1.30 0.20 1.35 0.29 1.45 Cookies & Crackers Back to Nature Mini Vanilla Wafers 0.73 0.40 0.00 1.20 0.06 1.25 0.13 $ 1.30 0.21 1.40 0.30 1.50 Barbara's Snacklmals - Chocolate Chip 0.71 0.40 0.00 1.15 0.06 1.20 0.13 $ 1.30 0.20 1.35 0.29 1.45 Fruit Welch's Mixed Fruit Snacks 0.19 0.40 0.00 0.65 0.03 0.65 0.07 $ 0.70 0.11 0.75 0.16 0.80 Kirkland's Real Sliced Fruit - Fuji Apple 0.79 0.40 0.00 1.25 0.07 1.30 0.14 $ 1.40 0.22 1.45 0.31 1.55 Kirkland's Real Sliced Fruit - Strawberry Bana 0.79 0.40 0.00 1.25 0.07 1.30 0.14 $ 1.40 0.22 1.45 0.31 1.55 Materne Gogo Squeez Apple Cinnamon 0.52 0.40 0.00 0.95 0.05 1.00 0.11 5 1.05 0.17 1.15 0.24 1.20 Tree Top Apple Sauce Cups - Natural 0.29 0.40 0.00 0.75 0.04 0.75 0.08 $ 0.80 0.13 0.85 0.18 0.90 Stretch Island Fruit Leather - Grape, Cherry, 0.26 0.40 0.00 0.70 0.04 0.75 0.08 $ 0.80 0.12 0.80 0.17 0.85 Betty Crocker - Fruit by the Foot Rolls - Straw 0.30 0.40 0.00 0.75 0.04 0.80 0.08 $ 0.80 0.13 0.85 0.19 0.95 Kellogg's Fruity Snacks - Cherry, Strawberry, 1 0.34 0.40 0.00 0.80 0.04 0.80 0.09 $ 0.85 0.14 0.90 0.20 1.00 Del Monte 50 - Fruit in Pull Top Can - Mixed z 0.44 0.40 0.00 0.90 0.05 0.95 0.10 $ 1.00 0,16 1.05 0.22 1.10 9/7/2012 1020 AM Variable Pricine Levels and Commission Rates - Snacks - 0 - 20%- SeD 5-12 Proprietary Information of Front Range Healthy Vending Variable Pricing Levels and Commission Rates for Variety of Healthy Beverages Mark Up 0.40 ISale Price Calculation = product cost + product delivery cost + mark-up + sales tax to City/State + credit card fees + commission to City Sales Tax % 2.25% Sales Prices are rounded up to the nearest $.05 Credit Card Fee % 0.0% 0%Commission 5.00%Commission 1 10.00%Commission 15.00%Commission 20.00%Commission Product Est. Cost Mark -Up Commission Sale Price Commission Sale Price Commission Sale Price Commission Sale Price Commission Sale Price (w/ delivery) Calculation Calculation Calculation Calculation Calculation Smoothies Odwalla Smoothies for Kids - Mango Pineapple 1.50 0.40 0.00 1.95 0.10 2.05 0.22 2.20 0.35 2.30 0.49 2.45 Tea Lipton Diet Iced Green Tea 0.38 0.40 0.00 0.80 0.04 0.85 0.09 0.90 0.14 0.95 0.21 1.05 Kirkland Natural Brewed Green Tea - Lemon, Apple, Peac 0.77 0.40 0.00 1.20 0.07 1.30 0.14 1.35 0.22 1.45 0.31 1.55 Milk Silk Soymilk - Chocolate 0.79 0.40 0.00 1.25 0.07 1.30 0.14 1.40 0.22 1.45 0.31 1.55 Horizon Organic Milk 1%- White 0.67 0.40 0.00 1.10 0.06 1.20 0.13 1.25 0.20 1.30 0.28 1.40 Juice Vita Coco - 100% Coconut Juice 1.33 0.40 0.00 1.80 0.10 1.90 0.20 2.00 0.32 2.10 0.45 2.25 Tropicana Orange Juice 0.48 0.40 0.00 0.95 0.05 0.95 0.11 1.05 0.17 1.10 0.23 1.15 V-8 Low Sodium Vegetable Juice 0.54 0.40 0.00 1.00 0.05 1.05 0.11 1.10 0.17 1.15 0.25 1.25 V-8 V-Fusion Veg & Fruit - Pomegranite & Blueberry 0.65 0.40 0.00 1.10 0.06 1.15 0.12 1.20 0.20 1.30 0.28 1.40 Tree Top 100% Apple Juice 0.43 0.40 0.00 0.85 0.05 0.90 0.10 0.95 0.16 1.05 0.22 1.10 CapriSun Super V - Fruit & Vegi Juice Drink (66%Juice) 0.30 0.40 0.00 0.75 0.04 0.80 0.08 0.80 0.13 0.85 0.19 0.95 Switch Sparkling Juice - Black Cherry 0.47 0.40 0.00 0.90 0.05 0.95 0.10 1.00 0.17 1.10 0.23 1.15 Apple & Eve 100% Juice - Very Berry, Fruit Punch, Apple 0.32 0.40 0.00 0.75 0.04 0.80 0.09 0.85 0.14 0.90 0.19 0.95 Water Fruit 2 0 0.40 0.40 0.00 0.85 0.05 0.90 0.10 0.95 0.15 1.00 0.21 1.05 Talking Rain Sparkling Ice Spring Water - Orange Mango, 0.62 0.40 0.00 1.05 0.06 1.10 0.12 1.20 0.19 1.25 0.27 1.35 La Croix Flavored Sparkling Water - Lemon, Lime, orange 0.35 0.40 0.00 0.80 0.04 0.85 0.09 0.90 0.14 0.95 0.20 1.00 Glaceau Vitamin Water Zero - Orange, Lemon, Blueberry 0.77 0.40 0.00 1.20 0.07 1.30 0.14 1.35 0.22 1.45 0.31 1.55 Aquafina Purified Water 0.18 0.40 0.00 0.60 0.03 0.65 0.07 0.70 0.11 0.75 0.15 0.75 San Pellegrino Sparkling Water - Lemon 0.67 0.40 0.00 1.10 0.06 1.20 0.13 1.25 0.20 1.30 0.28 1.40 Sports and Energy Drinks Gatorade Perform - G Series - Low Calorie - Berry, Grape, 0.54 0.40 0.00 1.00 0.05 1.05 0.11 1.10 0.17 1.15 0.25 1.25 Gatorade Perform - G Series - Orange/Lemon/Fruit Punc 0.36 0.40 0.00 0.80 0.04 0.85 0.09 0.90 0.14 0.95 0.20 1.00 SOBE Lifewater - Black and blue berry (2.5 servings) 0.80 0.40 0.00 1.25 0.07 1.30 0.14 1.40 0.23 1.50 0.31 1.55 Soda Hansen Diet Soda - Tangerine Lime 0.46 0.40 0.00 0.90 0.05 0.95 0.10 1.00 0.16 1.05 0.23 1.15 Hansen Natural Cane Soda - Rootbeer 0.46 0.40 0.00 0.90 0.05 0.95 0.10 1.00 0.16 1.05 0.23 1.15 Blue Sky Soda - Black Cherry 0.60 0.40 0.00 1.05 0.06 1.10 0.12 1.15 0.19 1.25 0.26 1.30 9/7/2012 10:21 AM Variable Pricing Levels and Commission Rates - Beverages - 0 - 20%- Sep 5-12 Proprietary Information of Front Range Healthy Vending -* Sale Price Calculations on Variety of Healthy Snacks 0% Commission Rate Sale prices are based on current costs of product and assumptions in box Mark Up 0.40 Sales Tax % 2.25% Credit Card Fee % 0.0% Commission % 0.00% Product Est. Cost (w/ delivery) Mark -Up Sales Tax Credit Card Fees Commission Sale Price Calculation Sale Price Recommended Bars Clif Bar - Banana Nut Bread 0.87 0.40 0.029 1.30 $ 1.25 Clif Bar - Chocolate Chip 0.88 0.40 0.030 1.35 $ 1.25 Luna Bar - Toasted Nuts N Cranberry 1.00 0.40 0.033 1.45 $ 1.50 Lune Bar - Vanilla Almond 1.00 0.40 0.033 1.45 $ 1.50 Zbar - Chocolate Chip 0.64 0.40 0.025 1.10 $ 1.00 Kashi Chewy Granola Bar - Peanut Butter 0.54 0.40 0.023 1.00 $ 1.00 Quaker Chewy Granola - Chocolate 0.23 0.40 0.015 0.65 $ 0.75 Nature Valley Chewy Trail Mix - Fruit and Nut 0.31 0.40 0.017 0.75 $ 0.75 Kellogg's K Pastry Crisps - Strawberry 0.24 0.40 0.016 0.70 $ 0.75 Kellogg's Chewy Bar - Chocolate Chip 0.18 0.40 0.014 0.60 $ 0.75 Kellogg's Chewy Bar - Oatmeal Raisin 0.18 0.40 0.014 0.60 $ 0.75 Kellogg's Nutri Grain Bar - Strawberry 0.31 0.40 0.017 0.75 $ 0.75 Kellogg's Nutri Grain Bar - Blueberry 0.31 0.40 0.017 0.75 $ 0.75 Clif Z Bar - Iced Oatmeal Cookie 0.49 0.40 0.021 0.95 $ 1,00 Chips Pirate's Booty - Aged White Cheddar 0.40 0.40 0.019 0.85 $ 1.00 Lay's Baked Potato Chip - Regular 0.43 0.40 0.019 0.85 $ 1.00 Stacy's Pita Chips Simply Naked 0.71 0.40 0.026 1.15 $ 1.25 Cookies & Crackers Back to Nature Mini Vanilla Wafers 0.73 0.40 0.027 1.20 $ 1.25 Barbara's Snackimals - Chocolate Chip 0.71 0.40 0.026 1.15 $ 1.25 Fruit Welch's Mixed Fruit Snacks 0.19 0.40 0.015 0.65 $ 0.75 Kirkland's Real Sliced Fruit - Fuji Apple 0.79 0.40 0.028 1.25 $ 1.25 Kirkland's Real Sliced Fruit - Strawberry Banana 0.79 0.40 0.028 1.25 $ 1.25 Materne Gogo Squeez Apple Cinnamon 0.52 0.40 0.021 0.95 $ 1.00 Tree Top Apple Sauce Cups - Natural 0.29 0.40 0.017 0.75 $ 0.75 Stretch Island Fruit Leather - Grape, Cherry, Apple 0.26 0.40 0.016 0.70 $ 0.75 Betty Crocker - Fruit by the Foot Rolls - Strawberry 0.30 0.40 0.017 0.75 $ 0.75 Kellogg's Fruity Snacks - Cherry, Strawberry, Mixed 0.34 0.40 0.018 0.80 $ 0.75 Del Monte 50 - Fruit in Pull Top Can - Mixed and Pe 0.44 0.40 0.020 0.90 $ 1.00 9/7/2012 11:19 AM Detailed Pricing on Short List of Snacks - 0, 10, 15, 20% - Sep 6-12 Proprietary Information of Front Range Healthy Vending Sale Price Calculations on Variety of Healthy Snacks Mark Up 0.40 5% Commission Rate Sales Tax % 2.25% Sale prices are based on current costs of product and assumptions in box Credit Card Fee % 0.0% Commission % 5.00% Product Est. Cost (w/ delivery) Mark -Up Sales Tax Credit Card Fees Commission Sale Price Calculation Sale Price Recommended Ba rs Clif Bar - Banana Nut Bread 0.87 0.40 0.032 0.07 1.40 $ 1.50 Clif Bar - Chocolate Chip 0.88 0.40 0.032 0.07 1.40 $ 1.50 Luna Bar - Toasted Nuts N Cranberry 1.00 0.40 0.035 0.08 1.55 $ 1.50 Lune Bar - Vanilla Almond 1.00 0.40 0.035 0.08 1.55 $ 1.50 Zbar - Chocolate Chip 0.64 0.40 0.026 0.06 1.15 $ 1.25 Kashi Chewy Granola Bar - Peanut Butter 0.54 0.40 0.024 0.05 1.05 $ 1.00 Quaker Chewy Granola - Chocolate 0.23 0.40 0.016 0.04 0.70 $ 0.75 Nature Valley Chewy Trail Mix - Fruit and Nut 0.31 0.40 0.018 0.04 0.80 $ 0.75 Kellogg's K Pastry Crisps - Strawberry 0.24 0.40 0.016 0.04 0.70 $ 0.75 Kellogg's Chewy Bar - Chocolate Chip 0.18 0.40 0.015 0.03 0.65 $ 0.75 Kellogg's Chewy Bar - Oatmeal Raisin 0.18 0.40 0.015 0.03 0.65 $ 0.75 Kellogg's Nutri Grain Bar -Strawberry 0.31 0.40 0.018 0.04 0.80 $ 0.75 Kellogg's Nutri Grain Bar - Blueberry 0.31 0.40 0.018 0.04 0.80 $ 0.75 Clif Z Bar - Iced Oatmeal Cookie 0.49 0.40 0.023 0.05 1.00 $ 1.00 Chips Pirate's Booty - Aged White Cheddar 0.40 0.40 0.020 0.05 0.90 $ 1.00 Lay's Baked Potato Chip - Regular 0.43 0.40 0.020 0.05 0.90 $ 1.00 Stacy's Pita Chips Simply Naked 0.71 0.40 0.027 0.06 1.20 $ 1.25 Cookies & Crackers Back to Nature Mini Vanilla Wafers 0.73 0.40 0.028 0.06 1.25 $ 1.25 Barbara's Snackimals - Chocolate Chip 0.71 0.40 0.027 0.06 1.20 $ 1.25 Fruit Welch's Mixed Fruit Snacks 0.19 0.40 0.015 0.03 0.65 $ 0.75 Kirkland's Real Sliced Fruit - Fuji Apple 0.79 0.40 0.029 0.07 1.30 $ 1.25 Kirkland's Real Sliced Fruit - Strawberry Banana 0.79 0.40 0.029 0.07 1.30 $ 1.25 Materne Gogo Squeez Apple Cinnamon 0.52 0.40 0.023 0.05 1.00 $ 1.00 Tree Top Apple Sauce Cups - Natural 0.29 0.40 0.017 0.04 0.75 $ 0.75 Stretch Island Fruit Leather - Grape, Cherry, Appl 0.26 0.40 0.017 0.04 0.75 $ 0.75 Betty Crocker - Fruit by the Foot Rolls - Strawber 0.30 0.40 0.018 0.04 0.80 $ 0.75 Kellogg's Fruity Snacks - Cherry, Strawberry, Mix 0.34 0.40 0.018 0.04 0.80 $ 0.75 Del Monte 50 - Fruit in Pull Top Can - Mixed and 0.44 0.40 0.021 0.05 0.95 $ 1.00 9/7/2012 11:08 AM Detailed Pricing on Short List of Snacks - 5%- Sep 6-12 Proposal for 7427 Vending Machine Services September 4, 2012 This proposal is being submitted to the City of Fort Collins by Front Range Healthy Vending LLC. We are a local business that is focused on the promotion of healthy snacks and beverages through state-of-the-art vending machines located within the Ft. Collins/Loveland area. We have reviewed the Request for Proposal and understand, agree with, and accept most of the requirements of the request. We have also received and reviewed Addendum No. 1. There are some specific requirements and conditions that we would like to review and discuss in more detail to make sure we will be in full compliance with your requirements and expectations; we'll review these details section by section: Section A. Background — We have no concerns in this section other than the installation deadline of November 1, 2012. Depending on exactly when the contract will be awarded, and which machines will be selected, this date might (or might not) have to be extended for a brief period of time. Section B. Scope of Services - We understand and fully support your objective of providing healthy snacks and beverages. We can provide products that will fully meet your beverage and snack nutritional specifications as outlined in your request document. If you would like some "tradi_ tiQnaI" items also, we can certainly provide those, but we would prefer to offer healthy items in most cases. We have access to literally hundreds of healthy products so if you only want healthy products as per your specification, we will be able to do that. If we are awarded the contract, we would like to meet with the City's Nutrition Team and Recreation Department and decide together what the best choices are in regards to product mix (and price mix). We are very flexible in this regard; it may take awhile to arrive at the optimum product and price mix in order to provide the maximum level of service for your customers and employees, but it will be time well spent. Attachment A lists the nutritional data of some typical healthy snacks and beverages that meet the nutritional specifications that you have provided. In regards to the actual machines, we can provide a variety of machines that will best meet your needs. We have combo machines that offer both snacks and refrigerated beverages in the same machine. These types of machines are typically used in the healthy food vending market and work very well in locations that don't require a wide variety of product and don't have a very high volume of business. This might be a good choice for the Municipal Office Building on North Mason - Street because it seems to be in a relatively low traffic environment. We also have individual beverage and snack machines that might be a better choice in most of your locations (and meet Proprietary Information of Front Range Healthy Vending Sale Price Calculations on Variety of Healthy Snacks 10% Commission Rate Sale prices are based on current costs of product and assumptions in box Mark Up 0.40 Sales Tax % 2.25% Credit Card Fee % 0.01Y. Commission % 10.00% Product Est. Cost (w/ delivery) Mark -Up Sales Tax Credit Card Fees Commission Sale Price Calculation Sale Price Recommended Ba rs Clif Bar - Banana Nut Bread 0.87 0.40 0.033 0.15 1.45 $ 1.50 Clif Bar - Chocolate Chip 0.88 0.40 0.034 0.15 1.50 $ 1.50 Luna Bar - Toasted Nuts N Cranberry 1.00 0.40 0.036 0.16 1.60 $ 1.50 Lune Bar - Vanilla Almond 1.00 0.40 0.036 0.16 1.60 $ 1.50 Zbar - Chocolate Chip 0.64 0.40 0.027 0.12 1.20 $ 1.25 Kashi Chewy Granola Bar - Peanut Butter 0.54 0.40 0.025 0.11 1.10 $ 1.00 Quaker Chewy Granola - Chocolate 0.23 0.40 0.017 0.08 0.75 $ 0.75 Nature Valley Chewy Trail Mix - Fruit and Nut 0.31 0.40 0.019 0.09 0.85 $ 1.00 Kellogg's K Pastry Crisps - Strawberry 0.24 0.40 0.017 0.08 0.75 $ 0.75 Kellogg's Chewy Bar - Chocolate Chip 0.18 0.40 0.016 0.07 0.70 $ 0.75 Kellogg's Chewy Bar - Oatmeal Raisin 0.18 0.40 0.016 0.07 0.70 $ 0.75 Kellogg's Nutri Grain Bar - Strawberry 0.31 0.40 0.019 0.09 0.85 $ 1.00 Kellogg's Nutri Grain Bar - Blueberry 0.31 0.40 0.019 0.09 0.85 $ 1.00 Clif Z Bar - Iced Oatmeal Cookie 0.49 0.40 0.024 0.11 1.05 $ 1.00 Chips Pirate's Booty - Aged White Cheddar 0.40 0.40 0.021 0.10 0.95 $ 1.00 Lay's Baked Potato Chip - Regular 0.43 0.40 0.021 0.10 0.95 $ 1.00 Stacy's Pita Chips Simply Naked 0.71 0.40 0.029 0.13 1.30 $ 1.25 Cookies & Crackers Back to Nature Mini Vanilla Wafers 0.73 0.40 0.029 0.13 1.30 $ 1.25 Barbara's Snackimals - Chocolate Chip 0.71 0.40 0.029 0.13 1.30 $ 1.25 Fruit Welch's Mixed Fruit Snacks 0.19 0.40 0.016 0.07 0.70 $ 0.75 Kirkland's Real Sliced Fruit - Fuji Apple 0.79 0.40 0.032 0.14 1.40 $ 1.50 Kirkland's Real Sliced Fruit - Strawberry Banana 0.79 0.40 0.032 0.14 1.40 $ 1.50 Materne Gogo Squeez Apple Cinnamon 0.52 0.40 0.024 0.11 1.05 $ 1.00 Tree Top Apple Sauce Cups - Natural 0.29 0.40 0.018 0.08 0.80 $ 0.75 Stretch Island Fruit Leather - Grape, Cherry, Apple 0.26 0.40 0.018 0.08 0.80 $ 0.75 Betty Crocker - Fruit by the Foot Rolls - Strawberry 0.30 0.40 0.018 0.08 0.80 $ 0.75 Kellogg's Fruity Snacks - Cherry, Strawberry, Mixed 0.34 0.40 0.019 0.09 0.85 $ 1.00 Del Monte 50 - Fruit in Pull Top Can - Mixed and Pe 0.44 0.40 0.023 0.10 1.00 $ 1.00 9/7/2012 11:09 AM Detailed Pricing on Short List of Snacks - 0, 10,15, 20% - Sep 6-12 Proprietary Information of Front Range Healthy Vending Sale Price Calculations on Variety of Healthy Snacks 15% Commission Rate Sale prices are based on current costs of product and assumptions in box Mark Up 0.40 Sales Tax % 2.25% Credit Card Fee % 0.0% Commission % 15.00% Product Est. Cost (w/ delivery) Mark -Up Sales Tax Credit Card Fees Commission Sale Price Calculation Sale Price Recommended Bars Clif Bar - Banana Nut Bread 0.87 0.40 0.035 0.23 1.55 $ 1.50 Clif Bar - Chocolate Chip 0.88 0.40 0.035 0.23 1.55 $ 1.50 Luna Bar -Toasted Nuts N Cranberry 1.00 0.40 0.038 0.26 1.70 $ 1.75 Lune Bar - Vanilla Almond 1.00 0.40 0.038 0.26 1.70 $ 1.75 Zbar - Chocolate Chip 0.64 0.40 0.029 0.20 1.30 $ 1.25 Kashi Chewy Granola Bar - Peanut Butter 0.54 0.40 0.026 0.17 1.15 $ 1.25 Quaker Chewy Granola - Chocolate 0.23 0.40 0.018 0.12 0.80 S 0.75 Nature Valley Chewy Trail Mix - Fruit and Nut 0.31 0.40 0.020 0.14 0.90 $ 1.00 Kellogg's K Pastry Crisps - Strawberry 0.24 0.40 0.018 0.12 0.80 $ 0.75 Kellogg's Chewy Bar - Chocolate Chip 0.18 0.40 0.017 0.11 0.75 $ 0.75 Kellogg's Chewy Bar - Oatmeal Raisin 0.18 0.40 0.017 0.11 0.75 $ 0.75 Kellogg's Nutri Grain Bar - Strawberry 0.31 0.40 0.020 0.14 0.90 $ 1.00 Kellogg's Nutri Grain Bar - Blueberry 0.31 0.40 0.020 0.14 0.90 $ 1.00 Clif Z Bar - Iced Oatmeal Cookie 0.49 0.40 0.025 0.17 1.10 $ 1.00 Chips Pirate's Booty - Aged White Cheddar 0.40 0.40 0.023 0.15 1.00 $ 1.00 Lay's Baked Potato Chip - Regular 0.43 0.40 0.024 0.16 1.05 $ 1.00 Stacy's Pita Chips Simply Naked 0.71 0.40 0.030 0.20 1.35 $ 1.50 Cookies & Crackers Back to Nature Mini Vanilla Wafers 0.73 0.40 0.032 0.21 1.40 $ 1.50 Barbara's Snackimals - Chocolate Chip 0.71 0.40 0.030 0.20 1.35 $ 1.25 Fruit Welch's Mixed Fruit Snacks 0.19 0.40 0.017 0.11 0.75 $ 0.75 Kirkland's Real Sliced Fruit - Fuji Apple 0.79 0.40 0.033 0.22 1.45 $ 1.50 Kirkland's Real Sliced Fruit - Strawberry Banana 0.79 0.40 0.033 0.22 1.45 $ 1.50 Materne Gogo Squeez Apple Cinnamon 0.52 0.40 0.026 0-17 1.15 $ 1.25 Tree Top Apple Sauce Cups- Natural 0.29 0.40 0.019 0.13 0.85 $ 1.00 Stretch Island Fruit Leather - Grape, Cherry, Apple 0.26 0.40 0.018 0.12 0.80 $ 0.75 Betty Crocker - Fruit by the Foot Rolls - Strawberry 0.30 0.40 0.019 0.13 0.85 $ 0.75 Kellogg's Fruity Snacks - Cherry, Strawberry, Mixed 1 0.34 0.40 0.020 0.14 0.90 $ 1.00 Del Monte 50 - Fruit in Pull Top Can - Mixed and Pea 0.44 0.40 0.024 0.16 1.05 $ 1.00 9/7/2012 11:10 AM Detailed Pricing on Short List of Snacks - 0, 10, 15, 20%- Sep 6-12 Proprietary Information of Front Range Healthy Vending Sale Price Calculations on Variety of Healthy Snacks 20% Commission Rate Sale prices are based on current costs of product and assumptions in box Mark Up 0.40 Sales Tax % 2.25% Credit Card Fee % 0.0% Commission % 20.00% Product Est. Cost (w/ delivery) Mark -Up Sales Tax Credit Card Fees Commission Sale Price Calculation Sale Price Recommended Bars 0.87 0.40 0.037 0.33 1.65 $ 1.75 Clif Bar - Chocolate Chip 0.88 0.40 0.037 0.33 1.65 $ 1.75 Luna Bar - Toasted Nuts N Cranberry 1.00 0.40 0.042 0.37 1.85 $ 2.00 Lune Bar - Vanilla Almond 1.00 0.40 0.042 0.37 1.85 $ 2.00 Zbar - Chocolate Chip 0.64 0.40 0.030 0.27 135 $ 1.25 Kashi Chewy Granola Bar - Peanut Butter 0.54 0.40 0.028 0.25 1.25 $ 1.25 Quaker Chewy Granola - Chocolate 0.23 0.40 0.019 0.17 0.85 $ 1.00 Nature Valley Chewy Trail Mix - Fruit and Nut 0.31 0.40 0.021 0.19 0.95 $ 1.00 Kellogg's K Pastry Crisps - Strawberry 0.24 0.40 0.019 0.17 0.85 $ 1.00 Kellogg's Chewy Bar - Chocolate Chip 0.18 0.40 0.017 0.15 0.75 $ 0.75 Kellogg's Chewy Bar - Oatmeal Raisin 0.18 0.40 0.017 0.15 0.75 $ 0.75 Kellogg's Nutri Grain Bar - Strawberry 0.31 0.40 0.021 0.19 0.95 $ 1.00 Kellogg's Nutri Grain Bar - Blueberry 0.31 0.40 0.021 0.19 0.95 $ 1.00 Clif Z Bar - Iced Oatmeal Cookie 0.49 0.40 0.026 0.23 1.15 $ 1.25 Chips Pirate's Booty - Aged White Cheddar 0.40 0.40 0.024 0.21 1.05 $ 1.00 Lay's Baked Potato Chip - Regular 0.43 0.40 0.025 0.22 1.10 $ 1.00 Stacy's Pita Chips Simply Naked 0.71 0.40 0.033 0.29 1.45 $ 1.50 Cookies & Crackers Back to Nature Mini Vanilla Wafers 0.73 0.40 0.034 0.30 1.50 $ 1.50 Barbara's Snackimals - Chocolate Chip 0.71 0.40 0.033 0.29 1.45 $ 1.50 Fruit Welch's Mixed Fruit Snacks 0.19 0.40 0.018 0.16 0.80 $ 0.75 Kirkland's Real Sliced Fruit - Fuji Apple 0.79 0.40 0.035 0.31 1.55 $ 1.50 Kirkland's Real Sliced Fruit - Strawberry Banana 0.79 0.40 0.035 0.31 1.55 $ 1.50 Materne Gogo Squeez Apple Cinnamon 0.52 0.40 0.027 0.24 1.20 $ 1.25 Tree Top Apple Sauce Cups - Natural 0.29 0.40 0.020 0.18 0.90 $ 1.00 Stretch Island Fruit Leather - Grape, Cherry, Apple 0.26 0.40 0.019 0.17 0.85 $ 1.00 Betty Crocker - Fruit by the Foot Rolls - Strawberry 0.30 0.40 0.021 0.19 0.95 $ 1.00 Kellogg's Fruity Snacks - Cherry, Strawberry, Mixed 0.34 0.40 0.023 0.20 1.00 $ 1.00 Del Monte 50 - Fruit in Pull Top Can - Mixed and Pe 0.44 0.40 0.025 0.22 1.10 $ 1.00 9/7/2012 11:10 AM Detailed Pricing on Short List of Snacks - 0, 10, 15, 20% - Sep 6-12 r Proprietary Information of Front Range Healthy Vending Mark Up 0.40 Price Calculations on a Variety of Healthy Beverages Sales Tax % 2.25% 0% Commission Rate I Credit Card Fee % 0.0% Sale Prices are based on currrent costs of product and assupmotions in box Commission % 0.00% August 2012 Product Est. Cost Mark -Up Sales Tax Credit Card Commission Sale Price Sale Price Iw/ delivery) Fees Calculation Recommended Smoothies Odwalla Smoothies for Kids - Mango Pineapple Tea Lipton Diet Iced Green Tea Kirkland Natural Brewed Green Tea - Lemon, Apple, Peac Milk Silk Soymilk - Chocolate Horizon Organic Milk 1%- White Juice Vita Coco - 100% Coconut Juice Tropicana Orange Juice V-8 Low Sodium Vegetable Juice V-8 V-Fusion Veg & Fruit - Pomegranite & Blueberry Tree Top 100% Apple Juice CapriSun Super V - Fruit & Vegi Juice Drink (66%Juice) Switch Sparkling Juice - Black Cherry Apple & Eve 100% Juice - Very Berry, Fruit Punch, Apple Water Fruit 2 0 Talking Rain Sparkling Ice Spring Water - Orange Mango, La Croix Flavored Sparkling Water - Lemon, Lime, orange Glaceau Vitamin Water Zero - Orange, Lemon, Blueberry Aquafina Purified Water San Pellegrino Sparkling Water - Lemon Sports and Energy Drinks Gatorade Perform - G Series - Low Calorie - Berry, Grape, Gatorade Perform - G Series - Orange/Lemon/Fruit Puncl SOBE Lifewater - Black and blue berry (2.5 servings) Soda Hansen Diet Soda - Tangerine Lime Hansen Natural Cane Soda - Rootbeer Blue Sky Soda - Black Cherry 1.50 1 0.40 0.38 0.40 0.77 0.40 0.79 0.40 0.67 0.40 1.33 0.48 0.54 0.65 0.43 0.30 0.47 0.32 0.40 0.62 0.35 0.77 0.18 0.67 0.54 0.36 0.80 0.46 0.46 0.60 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.04 0.02 0.03 0.03 0.02 0.04 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.03 0.01 0.02 0.02 0.02 0.03 0.02 0.02 0.02 1.95 1 $ 0.80 $ 1.20 $ 1.25 $ 1.10 $ 1.80 $ 0.95 $ 1.00 $ 1.10 $ 0.85 $ 0.75 $ 0.90 $ 0.75 $ 0.85 $ 1.05 $ 0.80 $ 1.20 $ 0.60 $ 1.10 $ 2.00 0.75 1.25 1.25 1.00 1.75 1.00 1.00 1.00 0.75 0.75 1.00 0.75 1.00 1.00 0.75 1.25 0.75 1.00 1.00 $ 1.00 0.80 $ 0.75 1.25 $ 1.25 0.90 $ 1.00 0.90 $ 1 1.00 1.05 $ 1.00 Detailed Pricing Base Table for Beverages -O%- Seat6-12 Proprietary Information of Front Range Healthy Vending Price Calculations on a Variety of Healthy Beverages Mark Up 0.40 5% Commission Rate I Sales Tax % 2.25% Sale Prices are based on currrent costs of product and assupmotions in box Credit Card Fee % 0.0% August 2012 Commission % 5.00% Product Est. Cost (w/ delivery) Mark -Up Sales Tax Credit Card Fees Commission Sale Price Calculation Sale Price Recommended Smoothies Odwalla Smoothies for Kids - Mango Pineapple 1.50 0.40 0.05 0.10 2.05 $ 2.00 Tea Lipton Diet Iced Green Tea 0.38 0.40 0.02 0.04 0.85 $ 1.00 Kirkland Natural Brewed Green Tea - Lemon, Apple, Peac 0.77 0.40 0.03 0.07 1.30 $ 1.25 Milk Silk Soymilk - Chocolate 0.79 0.40 0.03 0.07 1.30 $ 1.25 Horizon Organic Milk 1%- White 0.67 0.40 0.03 0.06 1.20 $ 1.25 Juice Vita Coco - 100% Coconut Juice 1.33 0.40 0.04 0.10 1.90 $ 2.00 Tropicana Orange Juice 0.48 0.40 0.02 0.05 0.95 $ 1.00 V-8 Low Sodium Vegetable Juice 0.54 0.40 0.02 0.05 1.05 $ 1.00 V-8 V-Fusion Veg & Fruit - Pomegranite & Blueberry 0.65 0.40 0.03 0.06 1.15 $ 1.25 Tree Top 100% Apple Juice 0.43 0.40 0.02 0.05 0.90 $ 1.00 CapriSun Super V - Fruit & Vegi Juice Drink (66%Juice) 0.30 0.40 0.02 0.04 0.80 $ 0.75 Switch Sparkling Juice - Black Cherry 0.47 0.40 0.02 0.05 0.95 $ 1.00 Apple & Eve 100% Juice - Very Berry, Fruit Punch, Apple 0.32 0.40 0.02 0.04 0.80 $ 0.75 Water Fruit 2 O 0.40 0.40 0.02 0.05 0.90 $ 1.00 Talking Rain Sparkling Ice Spring Water - Orange Mango, 0.62 0.40 0.02 0.06 1.10 $ 1.00 La Croix Flavored Sparkling Water - Lemon, Lime, orange 0.35 0.40 0.02 0.04 0.85 $ 1.00 Glaceau Vitamin Water Zero - Orange, Lemon, Blueberry 0.77 0.40 0.03 0.07 1.30 $ 1.25 Aquafina Purified Water 0.18 0.40 0.01 0.03 0.65 $ 0.75 San Pellegrino Sparkling Water - Lemon 0.67 0.40 0.03 0.06 1.20 $ 1.25 Sports and Energy Drinks Gatorade Perform - G Series - Low Calorie - Berry, Grape, 0.54 0.40 0.02 0.05 1.05 $ 1.00 Gatorade Perform - G Series - Orange/lemon/Fruit Puncl 0.36 0.40 0.02 0.04 0.85 $ 1.00 SOBE Lifewater - Black and blue berry (2.5 servings) 0.80 0.40 0.03 0.07 1.30 $ 1.25 Soda Hansen Diet Soda - Tangerine Lime 0.46 0.40 0.02 0.05 0.95 $ 1.00 Hansen Natural Cane Soda - Rootbeer 0.46 0.40 0.02 0.05 0.95 $ 1.00 Blue Sky Soda - Black Cherry 0.60 0.40 0.02 0.06 1.10 $ 1.00 9/7/2012 11:21 AM Detailed Pricing Base Table for Beverages -5% - Sept 6-12 Proprietary Information of Front Range Healthy Vending Price Calculations on a Variety of Healthy Beverages Mark Up 0.40 10% Commission Rate ISales Tax % 2.25% Sale Prices are based on currrent costs of product and assupmotions in box Credit Card Fee % 0.0% August 2012 Commission % 10.00% Product Est. Cost (w/ delivery) Mark -Up Sales Tax Credit Card Fees Commission Sale Price Calculation Sale Price Recommended Smoothies Odwalla Smoothies for Kids - Mango Pineapple 1.50 0.40 0.05 0.22 2.20 $ 2.25 Tea Lipton Diet Iced Green Tea 0.38 0.40 0.02 0.09 0.90 $ 1.00 Kirkland Natural Brewed Green Tea - Lemon, Apple, Peac 0.77 0.40 0.03 0.14 1.35 $ 1.25 Milk Silk Soymilk - Chocolate 0.79 0.40 0.03 0.14 1.40 $ 1.50 Horizon Organic Milk 1%- White 0.67 0.40 0.03 0.13 1.25 $ 1.25 Juice Vita Coco - 100% Coconut Juice 1.33 0.40 0.05 0.20 2.00 $ 2.00 Tropicana Orange Juice 0.48 0.40 0.02 0.11 1.05 $ 1.00 V-8 Low Sodium Vegetable Juice 0.54 0.40 0.02 0.11 1.10 $ 1.00 V-8 V-Fusion Veg & Fruit - Pomegranite & Blueberry 0.65 0.40 0.03 0.12 1.20 $ 1.25 Tree Top 100% Apple Juice 0.43 0.40 0.02 0.10 0.95 $ 1.00 CapriSun Super V - Fruit & Vegi Juice Drink (66%Juice) 0.30 0.40 0.02 0.08 0.80 $ 0.75 Switch Sparkling Juice - Black Cherry 0.47 0.40 0.02 0.10 1.00 $ 1.00 Apple & Eve 100% Juice - Very Berry, Fruit Punch, Apple 0.32 0.40 0.02 0.09 0.85 $ 0.75 Water Fruit 2 0 0.40 0.40 0.02 0.10 0.95 $ 1.00 Talking Rain Sparkling Ice Spring Water - Orange Mango, 0.62 0.40 0.03 0.12 1.20 $ 1.25 La Croix Flavored Sparkling Water - Lemon, Lime, orange 0.35 0.40 0.02 0.09 0.90 $ 1.00 Glaceau Vitamin Water Zero - Orange, Lemon, Blueberry 0.77 0.40 0.03 0.14 1.35 $ 1.25 Aquafina Purified Water 0.18 0.40 0.02 0.07 0.70 $ 0.75 San Pellegrino Sparkling Water - Lemon 0.67 0.40 0.03 0.13 1.25 $ 1.25 Sports and Energy Drinks Gatorade Perform - G Series - Low Calorie - Berry, Grape, 0.54 0.40 0.02 0.11 1.10 $ 1.00 Gatorade Perform - G Series - Orange/Lemon/fruit Pund 0.36 0.40 0.02 0.09 0.90 $ 1.00 SOBE Lifewater - Black and blue berry (2.5 servings) 0.80 0.40 0.03 0.14 1.40 $ 1.50 Soda Hansen Diet Soda - Tangerine Lime 0.46 0.40 0.02 0.10 1.00 $ 1.00 Hansen Natural Cane Soda - Rootbeer 0.46 0.40 0.02 0.10 1.00 $ 1.00 Blue Sky Soda - Black Cherry 0.60 0.40 0.03 0.12 1.15 $ 1.25 9/7/2012 11:02 AM Detailed Pricing Base Table for Beverages -10% - Sept 6-12 Proprietary Information of Front Range Healthy Vending Price Calculations on a Variety of Healthy Beverages Mark Up 0.40 15% Commission Rate I Sales Tax % 2.25% Sale Prices are based on currrent costs of product and assupmotions in box Credit Card Fee % 0.0% August 2012 Commission % 15.00% Product Est. Cost (w/ delivery) Mark -Up Sales Tax Credit Card Fees Commission Sale Price Calculation Sale Price Recommended Smoothies Odwalla Smoothies for Kids - Mango Pineapple 1.50 0.40 0.05 0.35 2.30 $ 2.25 Tea Lipton Diet Iced Green Tea 0.38 0.40 0.02 0.14 0.95 $ 1.00 Kirkland Natural Brewed Green Tea - Lemon, Apple, Peac 0.77 0.40 0.03 0.22 1.45 $ 1.50 Milk Silk Soymilk - Chocolate 0.79 0.40 0.03 0.22 1.45 $ 1.50 Horizon Organic Milk 1%- White 0.67 0.40 0,03 0.20 1.30 $ 1.25 Juice Vita Coco - 100% Coconut Juice 1.33 0.40 0.05 0.32 2.10 $ 2.00 Tropicana Orange Juice 0.48 0.40 0.02 0.17 1.10 $ 1.00 V-8 Low Sodium Vegetable Juice 0.54 0.40 0.03 0.17 1.15 $ 1.25 V-8 V-Fusion Veg & Fruit - Pomegranite & Blueberry 0.65 0.40 0.03 0.20 1.30 $ 1.25 Tree Top 100% Apple Juice 0.43 0.40 0.02 0.16 1.05 $ 1.00 CapriSun Super V - Fruit & Vegi Juice Drink (66%Juice) 0.30 0.40 0.02 0.13 0.85 $ 0.75 Switch Sparkling Juice - Black Cherry 0.47 0.40 0.02 0.17 1.10 $ 1.00 Apple & Eve 100% Juice - Very Berry, Fruit Punch, Apple 0.32 0.40 0.02 0.14 0.90 $ 1.00 Water Fruit 2 O 0.40 0.40 0.02 0.15 1.00 $ 1.00 Talking Rain Sparkling Ice Spring Water - Orange Mango, 0.62 0.40 0.03 0.19 1.25 $ 1.25 La Croix Flavored Sparkling Water - Lemon, Lime, orange 0.35 0.40 0.02 0.14 0.95 $ 1.00 Glaceau Vitamin Water Zero - Orange, Lemon, Blueberry 0.77 0.40 0.03 0.22 1.45 $ 1.50 Aquafina Purified Water 0.18 0.40 0.02 0.11 0.75 $ 0.75 San Pellegrino Sparkling Water - Lemon 0.67 0.40 0.03 0.20 1.30 $ 1.25 Sports and Energy Drinks Gatorade Perform - G Series - Low Calorie - Berry, Grape, 0.54 0.40 0.03 0.17 1.15 $ 1.25 Gatorade Perform - G Series - Orange/Lemon/Fruit Pund 0.36 0.40 0.02 0.14 0.95 $ 1.00 SOBE Lifewater - Black and blue berry (2.5 servings) 0.80 0.40 0.03 0.23 1.50 $ 1.50 Soda Hansen Diet Soda - Tangerine Lime 0.46 0.40 0.02 0.16 1.05 $ 1.00 Hansen Natural Cane Soda - Rootbeer 0.46 0.40 0.02 0.16 1.05 $ 1.00 Blue Sky Soda - Black Cherry 0.60 0.40 0.03 0.19 1.25 $ 1.25 9/7/2012 11:02 AM Detailed Pricing Base Table for Beverages -15% - Seot 6-12 Proprietary Information of Front Range Healthy Vending Price Calculations on a Variety of Healthy Beverages Mark Up 0.40 270/n Commission Rate ISales Tax % 2.25% Sale Prices are based on currrent costs of product and assupmotions in box Credit Card Fee % 0.0% August 2012 Commission % 20,00% Product Est. Cost (w/ delivery) Mark -Up Sales Tax Credit Card Fees Commission Sale Price Calculation Sale Price Recommended Smoothies Odwalla Smoothies for Kids - Mango Pineapple 1.50 0.40 0.06 0.49 2.45 $ 2.50 Tea Lipton Diet Iced Green Tea 0.38 0.40 0.02 0.21 1.05 $ 1.00 Kirkland Natural Brewed Green Tea - Lemon, Apple, Peac 0.77 0.40 0.03 0.31 1.55 $ 1.50 Milk Silk Soymilk - Chocolate 0.79 0.40 0.03 0.31 1.55 $ 1.50 Horizon Organic Milk 1%- White 0.67 0.40 0.03 0.28 1.40 $ 1.50 Juice Vita Coco -100% Coconut Juice 1.33 0.40 0.05 0.45 2.25 $ 2.25 Tropicana Orange Juice 0.48 0.40 0.03 0.23 1.15 $ 1.25 V-8 Low Sodium Vegetable Juice 0.54 0.40 0.03 0.25 1.25 $ 1.25 V-8 V-Fusion Veg & Fruit - Pomegranite & Blueberry 0.65 0.40 0.03 0.28 1.40 $ 1.50 Tree Top 100% Apple Juice 0.43 0.40 0.02 0.22 1.10 $ 1.00 CapriSun Super V - Fruit & Vegi Juice Drink (66%Juice) 0.30 0.40 0.02 0.19 0.95 $ 1.00 Switch Sparkling Juice - Black Cherry 0.47 0.40 0.03 0.23 1.15 $ 1.25 Apple & Eve 100%Juice - Very Berry, Fruit Punch, Apple 0.32 0.40 0.02 0.19 0.95 $ 1.00 Water Fruit 2 O 0.40 0.40 0.02 0.21 1.05 $ 1.00 Talking Rain Sparkling Ice Spring Water - Orange Mango, 0.62 0.40 0.03 0.27 1.35 $ 1.25 La Croix Flavored Sparkling Water - Lemon, Lime, orange 0.35 0.40 0.02 0.20 1.00 $ 1.00 Glaceau Vitamin Water Zero - Orange, Lemon, Blueberry 0.77 0.40 0.03 0.31 1.55 $ 1.50 Aquafina Purified Water 0.18 0.40 0.02 0.15 0.75 $ 0.75 San Pellegrino Sparkling Water - Lemon 0.67 0.40 0.03 0.28 1.40 $ 1.50 Sports and Energy Drinks Gatorade Perform - G Series - Low Calorie - Berry, Grape, 0.54 0.40 0.03 0.25 1.25 $ 1.25 Gatorade Perform - G Series - Orange/Lemon/Fruit Puncir 0.36 0.40 0.02 0.20 1.00 $ 1.00 SOBE Lifewater - Black and blue berry (2.5 servings) 0.80 0.40 0.03 0.31 1.55 $ 1.50 Soda Hansen Diet Soda - Tangerine Lime 0.46 0.40 0.03 0.23 1.15 $ 1.25 Hansen Natural Cane Soda - Rootbeer 0.46 0.40 0.03 0.23 1.15 $ 1.25 Blue Sky Soda - Black Cherry 0.60 0.40 0.03 0.26 1.30 $ 1.25 9/7/2012 11:02 AM Detailed Pricing Base Table for Beverages -20% - Sept 6-12 your RFQ specification). Attachment B includes some vending machine brochures that describe the units in more detail. All of the machines that I have included in this quote are manufactured by the same company and the basic features and technology of all the machines are very similar. if you would prefer to keep the same brand of machines that are currently in place at most of your locations (Dixie-Narco and Automatic Products), we can also provide those machines, although those beverage machines have some limitations in regards to product variety. If we are awarded the contract, we can work with your people and jointly decide at that time which machines will be best suited at each location. If you are very sure that you want to have the machines as outlined in the request document (individual snack and beverage units), we can certainly provide them. Section C. General Conditions & Specifications — We will go through the entire section point by point: 1. All machines shall be installed, stocked, maintained, and serviced by the Vendor at no expense to the City. We will comply 2. No machines may be installed, removed, or locations changed without the prior written authorization of the City Representative. We will comply 3. All machines must be new or refurbished to like new condition. All machines will be new 4. Vendor shall furnish the City Representative a description of each make or type of machine. We will comply 5. Each machine must have the ENERGY STAR rating or incorporate an energy -saving technology device. All of the machines have the ENERGY STAR rating 6. Each machine must accept coins, one dollar bills, and dispense proper change. The machines will also accept five dollar bills and have the option to accept ten dollar bills 7. The City will in no way be responsible for normal wear, loss, or damage to the machines. We concur 8. Name of Vendor, contact information and customer refund procedures must be prominently displayed on each machine. We will comply 9. Vendor must comply with all applicable laws, rules, and regulations. We will comply 10. Products must be identified by brand name and weight or size including pricing. Health labels giving nutritional guidelines should be provided. We will comply 11. Vendor must have a reliable, flexible system available for maintaining adequate product inventory and keeping machines properly stocked. Must coordinate restocking requirements for tournaments and special events, including weekends, with City Representative as required. We will comply and will use the First In — First Out (FIFO) inventory replenishment system 12. Storage is not available at vending locations. Vendor must provide for storage. We will comply 13. For the first six calendar months of this contract, no changes in pricing of any item will be allowed. Any changes after that period in brands, weight, or price must be pre - approved in writing by the City Representative. We can agree to this requirement, but would like to have the flexibility to work with the City Representative on individual issues that may arise during the first six months. If the price of a particular product is too high to start with and we get some complaints, we may want to lower the price in order to meet the customer's expectations. On the other hand, if something is priced too low and keeps running out because it is such a "deal", then we may want to discuss the possibility of raising the price with the City Representative. The risk that we run by "freezing" prices is that we may not be as flexible to the market requirements and customer's expectations as we should be. If this is a firm requirement, we can accept it, but if we are awarded the contract, we would like to discuss this issue in a little more detail. 14. Detailed sales reports per machine must accompany each monthly statement. We will comply 15. Gross sales are defined as total vended sales excluding sales tax. It is computed by adding the beginning inventory to additions of merchandise to the vending machine and subtracting the ending inventory, at vended price less sales tax. Cash receipts cannot be considered as gross sales. The computer systems in our machines will automatically keep track of gross sales. This is generally considered to be a more accurate method of keeping track of sales versus the beginning and ending inventory method which is a manual process that is somewhat prone to errors. We highly recommend the automatic computer tracking system for gross sales determination, but will use the manual system if that is a firm requirement by the City. If we are awarded the contract, we would like to discuss this issue in more detail. 16. City shall provide adequate electrical outlets, lighting fixtures for general area illumination, and unmetered electricity in the vending sites. We concur 17. If you cannot produce 100% Healthy items, the product placement of healthy items should be placed within the vending machine so that they are visible at eye -level. We will comply 18. Can your organization provide educational information to our citizens about the products inside the machines? We can certainly provide educa#ional information, but it might be somewhat limited based on what information we can source from the manufacturers of the various products. As time goes on, more and more educational materials will become available based on market expectations and our ongoing efforts. 19. Can your organization conduct wellness efforts at special events by conducting sampling and wellness education? We can certainly provide some sampling and assist in wellness education at special events, and if we are awarded the contract, we would like to discuss this in much more detail with the appropriate people in your organization. 20. Would your organization be willing to work with CanDo and City of Fort Collins as a pilot site to study healthy vending machines for future grant funding opportunities? We are certainly willing to work with CanDo and City of Fort Collins in the promotion of healthy vending grant funding opportunities. We have already been in contact with the CanDo organization and we definitely support their objectives in regards to the prevention and reduction of obesity. 21. Do you offer a machine integrated cashless payment system which includes accepting credit and debit cards? We can provide the machines with credit/debit card capability. However, the cost to utilize the services of a credit card processing firm will be about 6% of the sale price of each item (this is in addition to the initial cost for the credit card reader itself and also the $10 per month activation fee). These additional costs will have to be reflected in the sale prices of the products. It might be a good idea to initially put credit card readers in certain locations and monitor the activity, and then make a decision later on regarding the addition of credit card readers in all machines. Section D. Supplementary Conditions — We understand and concur with all issues in regards to (1) Access to City Facilities and (2) Building Security. Section E. Proposal Requirements — 1. Company history and experience in providing beverage and snack vending machine services. We are a relatively new business in the Fort Collins area and our business structure is an L.L.C. We are a family owned and operated enterprise, and we started the business in early 2012 with the specific objective of promoting healthy food and beverage vending options (versus the standard "soda and candy" offering that most vending machine companies are providing). We started our business with an initial purchase of 11 healthy food vending machines and we plan to grow the business to the point where we are able to provide full time employment for up to 3 family members. We service and support all aspects of our business, including machine delivery and setup, technical service, product stocking and replenishment, marketing and sales activities, and all business management functions. Although it sometimes seems to be an "uphill battle", our business focus is to help slow -down and even begin to reverse the ongoing growth trend in obesity (and all the related health problems) that seems to be gaining momentum in the United States. In our small way, we are fighting this battle with our long term commitment towards healthier food options for those people who depend on vending machine food items for some of their nourishment. 2. The names and brief resumes of the company representatives responsible for providing further information and for coordinating vending operations in the City. a. Pete Mathis — My wife and I are the current owners, and I am the CEO of Front Range Healthy Vending. After graduating from CSU many years ago, I have had a long and successful career in business management with manufacturing companies around the world. I started my career in Fort Collins in the 1970's with a local company called Heath Engineering which was then purchased by the Swedish company ESAB, which is the world leader in welding and cutting products. I was transferred to South Carolina in 1990 to take over the management of another ESAB company called L-Tec Cutting Systems. I managed that international manufacturing company for several years and then transferred to Singapore in 1998 to take over as Managing Director of ESAB Asia Pacific. I remained in that role for several more years and eventually retired back to the U.S. in the mid 2000's. I then started another business career with an associated company called Hill Phoenix and managed their walk-in cooler division for a few years. The company headquarters was in Atlanta and a couple of years ago we grew tired of that area (no mountains!) and wanted to return to Colorado and start up a family business instead of continuing to work in the corporate world. After 30 years or so, the international travel and frequent jet -lag got to be a bit tiresome. It's great to be back in the mountains! b. Brian Mathis — Brian is our son and he has a degree from Appalachian State University in Boone NC. Within the next few years, he will take over the ownership and daily management responsibilities of Front Range Healthy Vending. He has been self employed for a few years in the remodeling of residential houses for rental purposes and then managing the rental business. c. Maria Mathis and 2 Nephews — My wife, Maria, is currently handling most of the paperwork requirements of the business and will continue in this role for the immediate future. We have 2 nephews who are relocating to Fort Collins and both of these young men have a strong interest in helping to build and manage our healthy food vending business. This may occur gradually (or quickly) depending on how rapidly we are able to grow the business. 3. References from five (5) or more organizations, preferably governmental and local that currently use your company for similar products and services. Because we are a newly formed business in this area, we will provide some references that have some experience with us on a personal level as well as a business level. Although this healthy vending business is a new venture for us, we have had many years of successful business management experience which will enable us to effectively and efficiently manage our new vending business. If you would like additional business references from my previous companies, please let me know. The reference letters are enclosed in Attachment C 4. A written description of each vending machine proposed, indicating whether it is new or refurbished, and a list of proposed products. As described earlier, we have a variety of machines that will be well suited to each of these locations. The proposed machines are listed in Attachment B, which also includes the machine brochures. All the machines will be new. If we are awarded the contract, I recommend that we have a meeting to discuss the specific details of the various machines and then make the machine selections based on the outcome of that meeting. Attachment A has a list of typical healthy snacks and beverages with the nutritional data of each item. Attachment D includes an abbreviated list of products along with sale price calculations based on variable commission rates. Both of these lists are just a small fraction of the total variety of healthy snacks and beverages that are available. S. Each vending machine shall be proposed separately and shall include a commission rate, percentage (%) of gross sales excluding sales tax, to be paid to the City. This percentage shall be submitted to two decimal places. We have enclosed Attachment B which lists the specific vending machines that we are proposing for each of the locations per your written specification. We have also included Attachment E which shows some suggested product offerings and includes the approximate product cost, our mark-up factor, the approximate rates for taxes and credit card fees, as well as the commission percentage. It also shows the calculated sale prices and the recommended sale prices. This is an area that we highly recommend a face-to-face meeting to discuss the various options that are available. In many respects, the amount of commission can be based on your objectives and recommendations. We need a certain amount of mark-up to help pay for the machine investments and also pay for the service effort to stock and maintain the machines. As an overall average, we will probably need about $.45 mark -upper item assuming about 20 vends per day per machine. If the number of vends averages more or less than that, then the markup may eventually have to be adjusted in order to reach the necessary level for a sustainable business. The other fixed items are the credit card fee of 6% and the city, county, and state sales taxes. The amount of commission can be largely determined based on your objectives in regards to prices to your customers and employees. If you want to keep prices as low as possible, then a 5 - 7% commission may be reasonable, if you're OK with higher prices, then an 8-10% commission may be warranted. If you really want as high a commission as possible, then a 15-20%