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17-1204_QUENCH USA, INC._Staff EmailChristv JAI From: Christy Jakl Sent: Monday, December 04, 2017 3:41 PM To: Maria Morris Cc: Matisse Reischl Subject: Quench Rental Agreement - Term Expiring Attachments: Quench Rental Agreement for City of San Juan Capistrano - signed.pdf; WATER COOLER PROPOSAL.DOCX Hi Maria, Our rental agreement with Quench for the 6 water dispensers ends on February 28, 2018. Based on the level of service provided over the past 5 years, I recommend that the City does not extend this rental agreement. In accordance with section 5 of the rental agreement (page 3), a 30 day notification is required to terminate the agreement, otherwise the rental agreement automatically renews for the same initial rental term (60 months). Should the City choose to terminate, we will need to notify them no later than January 26, 2018. Upon termination of the rental agreement, the City is responsible for paying a removal fee of $150 per unit (or $900). It was brought up before to move oversight of the water dispensers to Public Works. Earlier this year, Advanced Pure Water solicited interest in replacing our units after the contract terminated. Their price for their most basic unit was twice our current contract at over $50 per unit per month (our current contract with Quench is $25 per unit per month). At one point, Rob looked into the City purchasing units. Attached is the information he researched. Please let me know if you would like to move forward with terminating this agreement and I will prepare a letter to go out in January. Thanks! eP1ti,5 v jw CMC Assistant City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (949) 443-6310 1 (949) 493-1053 fax ciakl@sanivancapistrano.org City Hall Office Hours Mon —Thurs 7:30 a.m. — 5:30 p.m.; Fri 7:30 a.m. —4:30 p.m. Please note upcoming City Hall closure: Monday, December 25, 2017 - Monday, January 1, 2018 - Holiday Break.