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FINANCIAL IMPLICATIONS The agreed upon contractual arrangements with "Big Ten" Catering include the following: 1. RSC will receive a guaranteed $12,000 2. Big Ten Catering will be responsible for all operating costs including labor and merchandise. 3. RSC will retain the rights to all vending machine revenues. The former "Peake Promotions" Comparison is as follows: 4. RSC received a guaranteed $12,000 5. 2.5% of all gross revenues between $25,000-$49,000. 6. 5% of all gross revenues between $50,000-$74,999. 7. 7.5% of all gross revenues between $74,999-$99,999. 8. 10% of all gross revenues over $100,000 The city has received approximately $1200 in revenue sharing over the past few years and this is what has made it difficultfor the concessionairesto be viable. In the Big Ten proposal there is no revenue sharing amounts included. Prescribed accounting procedures will be used for the concession operations. STAFF RECOMMENDATION Based on the adopted policy and stated goal of providing quality services at the lowest possible costs, and the financial proposal with guarantees and the experience of the vendor, staff recommends that the City enter into a contract with Big Ten Catering for the operation of the concessions stands at the Roseville Skating Center. Their selection is a result of their overall experience, type of service provided to customers, recommendations, and their ability to work in a public setting. COUNCIL ACTION REQUESTED Motion authorizing the Mayor and City Manager to enter into a contract with Big Ten Catering for the operation of the concession stands at the Roseville Skating Center pending review and approval of the written agreement by the City Attorney.