LTC 271-2017 Healthy Snacks Vending ProgramCity of Mlaml Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl gov
OFFICE OF THE CITY MANAGER
271 -2017
TO: Mayor Philip Levine and Members 4f the City ommission
FROM: Jimmy L. Morales, City Manage
DATE: May 18, 2017
SUBJECT:
LETTER TO COMMISSION
HEALTHY SNACKS VENDING PROGRAM
The purpose of this Letter to the Commission (LTC) is to update the Mayor and City
Commissioners regarding the healthy snacks vending program for the operation of snack
machine at various locations on City properties.
BACKGROUND
The City of Miami Beach (City) and Bettoli Trading Corp. (Concessionaire) are parties to a
concession agreement, dated May 3, 2012, for operation of snack machine concessions at
various locations on City of Miami Beach properties (Agreement). The initial term was for five
(5) years commencing May 1, 2012 and ending April 30, 2017. The City extended the term for
one (1) year commencing May 1, 2017 and ending April 30, 2018. The City may extend the
term for four (4) additional one (1) year periods.
Under the terms of the Agreement, the snack options offered by Concessionaire shall generally
include healthy snacks such as whole grain chips, multigrain chips, vegetable chips, crackers,
nuts, reduced fat popcorn, baked or popped chips, sugar free chewing gum, fruit trail mix,
nutrition bars, granola bars, trail bars, fresh fruits and yogurt.
Subsequent to the commencement of the Agreement, the Administration worked with
Concessionaire to develop a specific standard to determine healthy snacks. The Administration
considered three (3) existing standards which include 1) Fit Pick, 2) United State Department of
Agriculture (USDA) and 3) Miami -Dade County Public Schools (MDCPS). The Fit Pick standard
was selected and all snack machines located in the City's parks and youth centers were
required to provide at least fifty percent (50 %) Fit Pick items. Snack machines located in
"public" locations (i.e. parking garages, office buildings, etc.) provided certain Fit Pick items in
an amount less than fifty percent (50 %). All Fit Pick items were clearly identified in the
machines with stickers to alert the customer.
Due to concerns from residents, the Administration was directed to re- evaluate the healthy
standard matter. The Administration presented the three (3) standards referenced above at the
October 19, 2016 City Commission meeting. The City Commission directed the Administration
to: 1) implement the MDCPS standards, the highest standard of the three (3) options, as
Letter to Commission — Healthy Snacks Vending Program
May 18, 2017
Page 2 of 3
contained on the chart on the following page (MDCPS Healthy Snacks Standard), for one
hundred percent (100 %) of the snack selections in the vending machines located in parks and
youth centers, 2) to implement the MDCPS standards for fifty percent (50 %) of the snack
selections in the vending machines located in other City structures, such as garages and office
buildings, 3) to reduce the annual Minimum Guarantee payment which Concessionaire pays
under the Concession Agreement from $12,731 to $11,000 annually and 4) to revisit the item
again in six (6) months.
SIX (6) MONTH UPDATE
For contract year 2015/16, prior to implementing the MDCPS standard, the gross sales for
snack machines were approximately $63,250. Since implementing the MDCPS standard, for
the six (6) month period from November 1, 2016 to April 30, 2017, the actual sales were
$20,335. The Concessionaire expects a larger decrease in sales during the next six (6) month
period from May 1, 2017 to October 31, 2017, due to summer, and projects the total sales for
the first twelve (12) month period of implementing the MDCPS standard to be approximately
$35,000. Since the City receives twenty percent (20%) of Concessionaire's gross sales, the
decrease from $63,250 to $35,000 amounts to approximately $5,650 less revenue to the City.
The decline in total sales was anticipated as healthy items in vending machines tend to be less
popular than typical items; however, the City believes providing healthy vending options is an
important part of encouraging a healthy lifestyle for our residents, visitors and employees and is
optimistic the healthy options will become more popular over time.
J LM /KGB /ES /M del
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Letter to Commission — Healthy Snacks Vending Program
May 18, 2017
Page 3 of 3
MDCPS Healthy Snacks Standard
Brand
Item
Price
Popchips
Sea Salt
$1.75
Popchips
Barbecue
$1.75
Popchips
Sea Salt & Vinegar
$1.75
Popchips
Sour Cream and Onion
$1.75
Popchips
Cheddar & Sour Cream
$1.75
Popcorner
White Cheddar
$1.25
'Non GMO coming soon $1 -50
Kettle
$1.25
'Non GMO coming soon $1 -50
Sweet Spicy Chili
$1.25
'Non GMO coming soon $1 -50
Jalapeno
$1.25
'Non GMO coming soon $1 -50
Sea Salt
$1.25
Indiana Popcorn
Kettlecorn
$1.25
Snyder's Pretzel
Old Tyme
$1.00
Kar's Nuts
Mango Pineapple mix
$1.25
Rice Krispies
Whole Grain Treat
$1,50
Cheez it
Whole Grain Cheddar
$1.00
Gold Fish
Whole Grain Cheddar
$1.00
General mills
Cocoa Puff Bar
$1.25
Nature's Valley
Oat & Honey
$1.25
Nature's Valley
Trail mix chewy
$1.25
Frito Lay's
Reduced Fat Doritos Nacho
$1.00
Frito Lay's
Old Tyme
$1.00
Frito Lay's
Reduced Fat Doritos Sweet Spicy Chili
$1.00
Frito Lay's
Reduced Fat Cheetos Puff
$1.00
Frito Lay's
Reduced Fat Cheetos Hot Puff
$1.00
Frito Lay's
Baked Cheetos
$1,00
Frito Lay's
Baked Cheetos Hot
$100
Frito Lay's
Baked lays Sour Cream & Onion
$1.00
Frito Lay's
Baked Lays BBQ
$1.00
Frito Lay's
Baked Ruffles Cheddar Sour Cream
$1.00
Frito Lay's
Fantastix Chili
$1.00
Frito Lay's
Fantastix Hot
$1.00