HomeMy WebLinkAbout2014-175-2154 - MH Management Inc 1515 NW 167 Street, Building 5 Suite 200
Miami Gardens, Florida 33169
City of Miami Gardens
Agenda Cover Memo
Council Meeting Date:
October 8, 2014 Item Type:
(Enter X in box)
Resolution Ordinance Other
X
Fiscal Impact:
(Enter X in box)
Yes
No Ordinance Reading:
(Enter X in box)
1st Reading 2nd Reading
X Public Hearing:
(Enter X in box)
Yes No Yes No
X
Funding Source:
NA Advertising Requirement:
(Enter X in box)
Yes No
X
Contract/P.O. Required:
(Enter X in box)
Yes No RFP/RFQ/Bid #:
RFP#13‐14‐039 Vending
Machine Services – Revenue
Sharing
X
Strategic Plan Related
(Enter X in box)
Yes No Strategic Plan Priority Area:
Enhance Organizational
Bus. & Economic Dev
Public Safety
Quality of Education
Qual. of Life & City Image
Communcation
Strategic Plan Obj./Strategy: (list the
specific objective/strategy this item will address)
X
Sponsor Name
Cameron Benson,
City Manager
Department:
City Facilities
Short Title:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI
GARDENS, FLORIDA, AWARDING A BID TO MH MANAGEMENT, INC.
FOR VENDING MACHINE SERVICES; AUTHORIZING THE CITY
MANAGER AND THE CITY CLERK TO EXECUTE AND ATTEST,
RESPECTIVELY THAT CERTAIN AGREEMENT, ATTACHED HERETO
AS EXHIBIT “A”, FOR THIS PURPOSE; PROVIDING FOR
INSTRUCTIONS TO THE CITY CLERK; PROVIDING FOR THE
ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE
DATE.
Staff Summary:
Background
ITEM K-9) CONSENT AGENDA
RESOLUTION
Bid to MH Management Inc.
1515 NW 167 Street, Building 5 Suite 200
Miami Gardens, Florida 33169
In order to provide cold drinks and healthy snacks for park patrons at Betty T. Ferguson Recreational
Complex, Carol City Park and Scott Park as well as employees at City Hall, Police Department and Public
Works, the City solicited for vending machine services. The current contract that provides the City with
a twenty percent (20%) revenue share from items purchased has expired.
Current
Staff prepared specifications for vending machine services – revenue sharing for the same locations. The
specifications stipulated that fifty percent (50%) of each vending machine must contain a selection of
healthy food and drink choices. The contractor must provide one cold drink and one snack machine at
each facility except Public Works where one machine must contain both cold drink and snacks.
The term of the contract is for an initial period of three years, with an option to renew annually
thereafter.
The specifications were posted on July 24, 2014. A broadcast notice was sent to 77 suppliers; twelve
(12) bid packages were requested. Two proposals were received; proposer’s names were publicly read
on August 14, 2014. A copy of the proposal document and submittals are available at the Assistant to
the Mayor and Council’s office for review.
Analysis
A selection/evaluation committee consisting of: Tom Ruiz, Public Works Director; Vernita Nelson,
Assistant City Manager; and Mayra Morales, Operations Manager for Parks & Recreation Department
evaluated the submittals and met on September 10, 2014. The ranking sheets were returned to
Procurement where the scores were combined and totaled. The Committee is recommending award to
M H Management, Inc. located in Miami Gardens, Florida.
The costs per vending machine item remain the same for the majority of the items. The proposed
contract will provide the City with twenty‐five percentage (25%) fees due monthly.
Fiscal Impact
The impact is very minimal. $3,300 was budgeted for FY 2015, with an additional 5% share of revenue,
will generate an additional approximately $165 should the volume remains the same.
Proposed Action:
That the City Council approves the attached resolution awarding vending machines services – revenue
sharing to M H Management, Inc. in accordance with ITB#13‐14‐039 and authorizing the City Manager to
execute a contract for the initial term of the contract.
Attachments:
Cost Sheet
ITB#13-14-039 Page 1 of 12
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October 2014
AGREEMENT FOR VENDING MACHINE SERVICES – REVENUE SHARING
THIS AGREEMENT is made and entered into this _____ day of ___________,
2014, by and between the City of Miami Gardens, a Florida municipal corporation
(hereinafter referred to as “City”), and MH Management Inc., a Florida corporation,
(hereinafter referred to as “Vendor”) and jointly referred to as the Parties.
WITNESSETH:
WHEREAS, on July 24, 2014, the City posted Bid Document No. 13-14-039; and
WHEREAS, Vendor submitted a Proposal dated August 14, 2014, in response to
the City’s request; and
WHEREAS, at a meeting held on October 8, 2014, the City Council selected the
Vendor to perform the services described in the City's Invitation to Bid (hereinafter
referred to as "ITB") and Vendor’s Proposal submitted in response to the ITB,
NOW THEREFORE, in consideration of the premises and the mutual covenants
herein named, the parties hereto agree as follows:
Article 1 Incorporation by Reference.
The following documents are hereby incorporated by reference and made part of
this Agreement.
(i) Specifications and Proposal Documents prepared by the City for Vending
Machine Services – Revenue Sharing, ITB#13-14-039(Exhibit 1).
(ii) Proposal for the City of Miami Gardens prepared by Vendor dated August
14, 2014. (Exhibit 2).
All exhibits may also be collectively referred to as the “Documents”. In the event
of any conflict between the Documents or any ambiguity or missing specifications
or instruction, the following priority is established:
A. This Agreement
B. Exhibit 1
C. Exhibit 2
Article 2 Scope of Work
The scope of services shall consist supplying, installing and maintaining and
servicing vending machines at City facilities as outlined in the City’s ITB. Vendor shall
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October 2014
perform the work under the general direction of the City and shall furnish all labor,
materials, supplies, equipment, supervision and services necessary for an incident to
the performance of the work, except as otherwise noted in specifications. By signing
this Agreement, Vendor represents that it thoroughly reviewed the documents
incorporated into this Agreement by reference and that it accepts the Work and the
conditions under which the Work is to be performed.
Article 3 Qualifications
Vendor and the individual executing this Agreement on behalf of the Vendor
warrant to the City that the Vendor is a Florida corporation duly constituted and
authorized to do business in the State of Florida, is in good standing and that Vendor
possesses all of the required licenses and certificates of competency required by the
State of Florida and the County of Miami-Dade to perform the work herein described,
and that they remain current throughout the entire contract.
Article 4 Compensation
Vendor shall provide all Services identified in ITB#13-14-039. For all Services
provided by Vendor, the Vendor shall pay the City twenty-five percent (25%) per month
of the gross revenue collected from the vending machines. Vendor shall submit
monthly reports of gross receipts with each revenue check and provide to the Finance
Department (hereinafter referred to as "the Department") with copies to each
department ( Public Works, Police Department, Parks Department, City Hall Facilities).
Each report shall be accompanied by a sworn statement certifying that the amount of
gross receipt for each month is true and correct. Vendor shall remit payment for all user
fees within ten (10) days after the end of previous month. All reports shall be in
compliance with proposal specifications.
Vendor shall make no charges or deductions to the City for supplies, labor, taxes,
licenses, permits, overhead or any other expenses or costs unless otherwise noted in
the specifications.
Article 5 Gross Receipts Defined
The term “gross receipts” is defined as the total amount charged for the sale of
vending machine products provided in connection with this Contract, but not including
any of the following:
1. Gratuity to employees; Vendors’ gratuity given directly to employees either by
cash or debit or credit card, which must be expressly identified as gratuity.
2. Any sales taxes, use taxes, or excise taxes required by law to be included in
or added to the purchase price and collected from the consumer or purchaser
and paid by Vendor;
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Vendor shall not reduce or increase the amount of gross receipts, as herein
defined, as a result of any of the following:
1. Any error in cash handling by Vendor or Vendor’s employees or agents;
Article 6 Late Payment Fee
1. Failure of Vendor to pay any of the revenue payments or any other fees,
charges, or payments required herein on time is a breach of the Agreement
for which City may terminate same or take such other legal action as it deems
necessary.
2. Without having any rights available at law, in equity or under the Agreement,
in the event of late or delinquent payments by Vendor, the latter recognizes
that City will incur certain expenses as a result thereof, the amount of which is
difficult to ascertain. Therefore, in addition to monies owing, Vendor agrees
to pay the City a late fee set forth below to compensate City for all expenses
and/or damages and loss resulting from said late or delinquent payments.
3. The charges for late or delinquent payments shall be $50.00 for each month
late plus interest calculated at the rate of eighteen percent (18%) per annum
or one and one-half percent (1.5%) each month, assessed daily, on the
balance of the unpaid amount. Payments shall be considered past due if
postmarked after the fifteenth (15th) day of the month in which payment is
due.
4. The acceptance of a late revenue payment by City shall not be deemed as a
waiver of any other breach by Vendor of any term or condition of this
Agreement other than the failure of Vendor to timely make the particular
revenue payment so accepted.
Article 7 Annual Accounting Adjustment
At the end of each twelve (12) month period during the term hereof, Vendor shall
prepare and submit to City a statement showing the total gross receipts for the said
twelve (12) month period and the revenue paid to City for the said twelve (12) months.
If the sums paid by Vendor during said period exceed the minimum annual fees as well
as the annual percentage charges computed as set forth in this Section, whichever is
greater, such overpayment shall be credited to the revenue payment thereafter due
from Vendor.
Article 8 Retention of Records
Vendor shall maintain during the term of the Agreement and for three (3) years
thereafter, all of its books, records and accounts as may be necessary in order to record
complete and correct entries related to this Agreement. Vendor shall allow access to all
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documents, papers, letters or other material subject to the provisions of Chapter 119,
Florida Statutes, made or received by Vendor in conjunction with this Agreement.
Vendor's failure to grant such access shall be grounds for immediate termination of this
Agreement by the City.
Compliance with Florida Public Records Laws. To the extent required by law,
Contractor shall comply with the public records laws in accordance with Chapter 119,
Florida Statutes. Specifically, Contractor agrees to comply with Section 119.0701,
Florida Statutes. Public records shall mean all documents, papers, letters, maps,
books, tapes, photographs, films, sound recordings, data processing software, or other
material, regardless of the physical form, characteristics, or means of transmission,
made or received pursuant to law or ordinance or in connection with the transaction of
official business by any agency, as defined in Section 119.011, Florida Statutes, as
amended. The City shall make the sole determination of which records, if any, are
exempt from inspection.
Article 9 Cash and Record Handling Requirements
If requested by City, Vendor shall prepare a description of its cash handling and
sales recording systems and equipment to be used for operation of the Vendor which
shall be submitted to City for approval.
Vendor shall be required to maintain a method of accounting of each vending
machine receipts which shall correctly and accurately reflect the gross receipts and
disbursements received or made by Vendor from the operation of the Vendor. The
method of accounting, including but not limited to bank accounts.
Such method shall include the keeping of the following documents:
1. Regular books of accounting such as general ledgers that that specifically
identified City’s receipts.
2. Federal income tax returns and sales tax returns and checks and other
documents proving payment of sums shown.
3. Any other accounting records that City, in its sole discretion, deems
necessary for proper reporting of receipts.
Article 10 Method of Recording Gross Receipts
Unless otherwise specified in the Agreement, Vendor shall have a system on
which it shall record all gross sales. The system shall be sufficient to supply an
accurate recording of all sales.
Article 11 Annual Statement of Gross Receipts and Expenses
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Vendor shall transmit a Statement of Gross Receipts and Expenses (Profit and
Loss Statement) for the vending machine operation as specified in the Agreement, in a
form acceptable to the City, after the close of each calendar year during the term of the
Agreement. Such Statement must be prepared by a Certified Public Accountant (CPA)
and shall not include statements of omission or non-disclosure. The charges for late or
delinquent Statements shall be $50.00 per month.
In addition, City may for time-to-time conduct an audit and re-audit of the books
and businesses conducted by Vendor and observe the operation of the business so that
accuracy of the above records can be confirmed. If the report of gross sales made by
Vendor to City shall be found to be less than the amount of gross sales disclosed by
such audit and observation, Vendor shall pay City within 30 days after billing any
additional rentals disclosed by such audit. If discrepancy exceeds 2% and no
reasonable explanation is given for such discrepancy, Vendor shall also pay the cost of
the audit.
Article 12 Term
This Agreement shall commence upon the execution by both parties and shall
continue for three (3) years, unless terminated sooner as provided for in this
Agreement. The Vendor understands and acknowledges that the Services to be
performed during the three (3) year term will be governed by this Agreement, and that
there is no guarantee of future work being given to the Vendor.
Parties agree and understand that this Agreement shall be renewable after the
expiration of the initial three (3) year period based upon satisfactory performance and
the contract is in the best interest of the City with terms and conditions to be agreed
upon by City and Vendor.
Parties agree and understand that the City reserves the right, at their sole
discretion, to renegotiate the amount of percentage fee paid to City for the second (2)
year of the contract and every year thereafter.
Article 13 Indemnification
Vendor shall indemnify and hold harmless the City and its officers, employees,
agents and instrumentalities from any and all liability, losses or damages, including
attorneys' fees and costs of defense, which the City or its officers, employees, agents or
instrumentalities may incur as a result of claims, demands, suits, causes of actions or
proceedings of any kind or nature arising out of, relating to or resulting from the
performance of this Agreement by the Vendor or its employees, agents, servants,
partners, principals or Sub-Contractors. Vendor shall pay all claims and losses in
connection therewith and shall investigate and defend all claims, suits or actions of any
kind or nature in the name of the City, where applicable, including appellate
proceedings, and shall pay all costs, judgments, and attorney's fees which may issue
thereon. Vendor expressly understands and agrees that any insurance protection
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required by this Agreement or otherwise provided by Vendor shall in no way limit the
responsibility to indemnify, keep and save harmless and defend the City or its officers,
employees, agents and instrumentalities as herein provided. One percent (1%) of the
contract amount shall represent the consideration to be provided for this
indemnification. Nothing contained herein shall be deemed a waiver of sovereign
immunity.
Article 14 Insurance
Vendor shall provide and maintain general liability insurance coverage, for
personal injury and property damage in the minimum amount of Five Hundred
Thousand ($500,000.00) Dollars, per incident, for personal injury, and Five Hundred
Thousand ($500,000.00) Dollars, per incident, for property damage.
Vendor shall also be required to provide and maintain, during the life of the
Agreement, comprehensive automobile liability insurance coverage for bodily injury and
property damage in the minimum amount of $100,000.00 or each occurrence and
$100,000.00 combined single limit.
Such liability policy of insurance shall designate the City as an additional insured
and Vendor shall deliver a fully effective certificate to that effect, evidencing no less than
thirty (30) day cancellation power.
Vendor shall also provide City with proof that Vendor has workers’ compensation
insurance in an amount, which satisfies the requirements of Florida Law, for any
employee of the Vendor.
Vendor shall also provide City with proof of Employee Fidelity/dishonesty
coverage - $1,000,000 per occurrence
Vendor shall also provide City with proof that Vendor has workers’ compensation
insurance in an amount, which satisfies the requirements of Florida Law, for any
employee of the Vendor.
Vendor shall not commence work pursuant to this Agreement until all insurance
required as stated herein has been obtained and such insurance has been approved by
the City.
Article 15 Termination
The City may, for its convenience and without cause, terminate this Agreement
by giving Vendor written notice at least thirty (30) days prior to the effective date of the
termination. Upon written notice of the City's desire to terminate this Agreement,
Vendor shall provide only those services and incur only those expenses specifically
approved or directed in writing by the City Manager or his designee.
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The City may terminate this Agreement for cause immediately, and without prior
notice to Vendor. Should the City terminate this Agreement for cause, the City shall
provide notice as soon as possible to Vendor.
Vendor may terminate this Agreement by giving the City written notice at least
thirty (30) days prior to the effective date of termination.
In the event of termination or expiration of this Agreement, Vendor and City shall
cooperate in good faith in order to effectuate a smooth and harmonious transition from
Vendor to the City or to any other person or entity the City may designate, and to
maintain during such period of transition that same services provide to the City pursuant
to the terms of this Agreement.
Vendor will take all reasonable and necessary actions to transfer all records, etc.
and data of the City in its possession in an orderly fashion to either the City or its
designee in a hard copy and computer format.
If either party terminates this Agreement, the City shall only pay Vendor for the
services provided through the date of termination.
Article 16 Ownership
All advertising/marketing plans and materials, fee structures, etc. originated or
prepared by Vendor pursuant to this Agreement including papers, charts, computer
programs, and other documentation or improvements thereto shall be owned by the
City.
Article 17 Modification/Amendment
This writing and exhibits contains the entire Agreement of the parties. No
representations were made or relied upon by either party, other than those that are
expressly set forth herein.
No agent, employee, or other representative of either party is empowered to
modify and amend the terms of this Agreement, unless executed in writing with the
same formality as this Document. No waiver of any provision of this Agreement shall be
valid or enforceable unless such waiver is in writing and signed by the party granting
such waiver.
Article 18 Severability
If any term or provision of this Agreement shall to any extent be held invalid, or
illegal by a court of competent jurisdiction, the remainder of this Agreement shall not be
affected thereby, and each term and provision of this agreement shall be valid and be
enforced to the fullest extent permitted by law.
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Article 19 Governing Law
This Agreement shall be construed in accordance with and governing by the laws
of the State of Florida, with venue lying in Miami-Dade County, Florida.
Article 20 Waiver
The failure of either party to this Agreement to object to or to take affirmative
action with respect to any conduct of the other which is in violation of the terms of this
Agreement shall not be construes as a waiver of the violation or breach, or of any future
violation, breach or wrongful conduct.
No waiver by the City of any provision of this Agreement shall be deemed to be a
waiver of any other provisions hereof or of any subsequent breach by Vendor of the
same, or any other provision or the enforcement thereof. The City’s consent to or
approval of any act by Vendor requiring the City’s consent or approval shall not be
deemed to render unnecessary the obtaining of the City’s consent to or approval of any
subsequent consent or approval of Vendor, whether or not similar to the act so
consented to or approved.
Article 21 Notices/Authorized Representatives
Any notices required or permitted by this Agreement shall be in writing and shall
be deemed to have been properly given if transmitted by hand-delivery, by registered
mail with postage prepaid return receipt delivery, by registered or certified mail with
postage prepaid return receipt requested, or by Federal Express addressed to the
parties at the following address:
City: Vendor: Margeret Marsh-Hinds
Cameron Benson, City Manager MH Management, Inc.
City of Miami Gardens 1361 NW 191st Street
18605 NW 27th Avenue Miami Gardens, FL 33169
Miami Gardens, FL 33056
With a copy to:
Sonja K. Dickens, Esq.
City Attorney
City of Miami Gardens
18605 NW 27th Avenue
Miami Gardens, FL 33056
Either party shall have the right to change its address for notice purposes by
sending written notice of such change of address to the other party in accordance with
the provisions herein.
Article 22 Independent Vendor
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Vendor is and shall remain an independent Vendor and is not an employee or
agent of the City. Services provided by Vendor shall
be by employees of Vendor and nothing in this Agreement shall in any way be
interpreted or construed to deem said employees to be agents, employees, or
representatives of the City.
Vendor shall be responsible for all compensation, tax responsibilities, insurance
benefits, other employee benefits, and any other status or rights of its employees during
the course of their employment with Vendor. The rights granted to Vendor hereunder
are nonexclusive, and the City reserves the right to enter into agreements with other
persons or firms to perform services including those hereunder.
Article 23 Assignment
Subject to the provisions above, this Agreement shall not be assignable by
Vendor.
Article 24 Prohibition Against Contingent Fees
Vendor warrants that it has no employees or retained any Vendor or person,
other than a bona fide employee working solely for Vendor, to solicit or secure this
Agreement, and that it has not paid or agreed to pay any person(s), Vendor,
corporation, individual or firm, other than a bond fide employee working solely for
Vendor, any fee, commission, percentage, gift, or any other consideration, contingent
upon or resulting from the award or making of this Agreement.
Article 25 Attorneys' Fees
Should any dispute arise hereunder, the prevailing party shall be entitled to
recover all costs, expenses and attorney’s fees incurred in such dispute, whether or not
suit be brought, and such right shall include all of such costs, expenses and attorney’s
fees through all appeals or other actions.
Article 26 Non-Discrimination
Vendor agrees to comply with all local and state civil rights ordinances and with
Title VI of the Civil Rights Act of 1964 as amended, the Americans with the Disabilities
Act of 1990, the Age Discrimination Act of 1975. Vendor will not discriminate against
any employee or applicant for employment because of race, color, creed, religion,
ancestry, national origin, sex, disability or other handicap, age, marital/family status or
status with regard to public assistance. Vendor will take affirmative action to insure that
all employment practices are free from such discrimination.
Article 27 Conflict of Interest
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Vendor agrees to adhere to and be governed by the Miami-Dade County Conflict
of Interest Ordinance Section 2-11.1, as amended, which is incorporated by reference
herein as if fully set forth herein, in connection with the Agreement conditions
hereunder.
Article 28 Binding Effect
All of the terms and provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective assigns, successors, legal
representatives, heirs and beneficiaries, as applicable.
Article 29 Construction
This Agreement and the terms hereof shall be construed in accordance with the
laws of the State of Florida and venue for all actions in a court of competent jurisdiction
shall lie in Miami-Dade County, Florida.
Article 30 Entire Agreement
No statements, representations, warranties, either written or oral, from whatever
source arising, except as expressly stated in this Agreement, shall have any legal
validity between the parties or be binding upon any of them. The parties acknowledge
that this Agreement contains the entire understanding and agreement of the parties. No
modifications hereof shall be effective unless made in writing and executed by the
parties hereto with the same formalities as this Agreement is executed.
Article 31 Captions and Paragraph Headings
Captions and paragraph headings contained in this Agreement are for
convenience and reference only and in no way define, describe, extend or limit the
scope and intent of this Agreement, nor the intent of any provisions hereof.
Article 32 Joint Preparation
The preparation of this Agreement has been a joint effort of the parties, and the
resulting document shall not, solely as a matter of judicial construction, be construed
more severely against one of the parties that the other. It is the parties’ further intention
that this Agreement be construed liberally to achieve its intent.
Article 33 Counterparts
This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which shall constitute one and the same
agreement.
Article 34 Exhibits are Inclusionary
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All exhibits attached hereto or mentioned herein which contain additional terms
shall be deemed incorporated herein by reference. Typewritten or handwritten
provisions inserted in this form or attached hereto shall control all printed provisions in
conflict therewith.
Article 35 Unlawful Harassment
Individuals representing the City of Miami Gardens, including vendors,
contractors, sub-contractors and other entities conducting business must agree to
adhere to the City’s Sexual Harassment an Unlawful Harassment & Retaliation Policy.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, this Agreement is effective as of the date first written
above.
Vendor: _____________________ CITY OF MIAMI GARDENS
By:_______________________________ By:_____________________________
Name:____________________________ City Manager
Title:_____________________________
WITNESS: ATTEST:
____________________________________ _______________________________
Corporate Secretary City Clerk, MMC
Approved as to legal sufficiency and
form :
________________________
City Attorney
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