R2014-63 ACCEPTING THE PROPOSAL OF THE ILLINOIS BUSINESS ENTERPRISE PROGRAM FOR THE BLIND

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4. PAYMENT TERMS A. Within 15 (fifteen) calendar days after the last day of each month, the Contractor shall furnish the City a statement for the month showing the amount of gross sales,by machine, the amount of sales taxes, and the net sales amount. And at the same time the Contractor shall remit to the City the percentage payment for that month, as specified below. B. In consideration of the rights and privileges granted under this Agreement, the Contractor shall pay to the City each month an amount equal to 12.5 percent of net sales (gross sales less sales tax). 5. OBLIGATIONS OF CONTRACTOR A. The Contractor hereby agrees to provide vending machines and to maintain and stock those machines, as per the specific terms of this Agreement, for the duration of this Agreement. The Contractor shall operate to maximize the sales revenue generated from such vending machines. The Contractor shall provide this service in accordance with this Agreement. The Contractor shall provide, install,repair,maintain, stock, operate, etc. vending machines on City property at the sole expense of the Contractor. B. The Contractor shall provide and install vending machines in locations designated by the City. The City shall have the right to limit the number of such machines. The vending machines provided shall all be newer model machines able to accept and make change for dollar bills. The Contractor shall keep the vending machines in proper working order and in good condition and appearance, and shall provide service/repairs within 48 hours of any request for service or repairs. The Contractor shall, within a reasonable period of time, remove and replace any vending machine which is not acceptable to the City due to appearance, condition or possible hazard to the public. C. The Contractor shall be responsible for stocking the vending machines and keeping them well supplied with food and beverage items. Unless specifically approved in writing by the City, the Contractor's vending machines shall only offer for sale food and beverage items. The Contractor shall control the types of products sold; the City shall have the right to require the removal of a type of product only when the sale of a product presents a threat to public health and welfare, or when the sale of a product results in unreasonable costs for the maintenance of the City's vehicles and facilities. The Contractor shall have control of the brands and sizes of items sold. The Contractor shall set and control the prices of all items sold by the vending machines. D. The Contractor shall be responsible for establishing a reasonable procedure for customer refunds. A customer service telephone number shall be posted in plain sight on each bank (group) of vending machines to enable customers and employees to request refunds, to report machine malfunctions, or to make comments and suggestions. -2 -