Agenda Packets - 1998/04/27 - Laserfiche WebLink

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ins to recreation programs such as trips to Valley Fair, Camp Snoopy, Timberwolves, Twins. • On full service vending machines (vendor fills machines and sends City a commission check), Coke would pay a 35%commission on sales while Pepsi would pay a commission of 30% to 36%. Based upon estimated sales,Pepsi's proposal would provide an additional$250 per year for scenario 3) above. • For areas where we would fill the machines or sell it directly (on beverage cart at the golf course),Pepsi would discount its product by approximately 10%. Estimated annual savings$1,600 per year or$8,000 over the life of the contract. • Pepsi would provide a$1,000 incentive to be used towards the purchase of a beverage cart at the golf course. We could purchase a cart from any vendor and the $1,000 would be applied towards the best deal we could get from them. We would be required to put a Pepsi emblem on the cart. Requirements: • The City and/or golf course would agree to exclusively sell the product from the vendor selected during the term of the contract. • Pepsi requires that for the golf course,its Pepsi Globe logo be placed on all programs, menus, signs, banners and other correspondence. Other information Staff has reviewe&and discussed the proposals: The golf course has limited space and from a practical standpoint can not carry a full line of one vendor let alone two vendors. In the past, it has carried some products from both Coke and Pepsi and expressed some concerns relating to being exclusive with one vendor since their product are not identical. After reviewing both proposals,the golf course personnel feel that Coke proposal's benefits far out ways any negative impact from not being able to offer any Pepsi products. The proposal was discussed with department heads and several employees at City Hall regarding the impact of offering only one vendor's product. It seems most employees were indifferent, especially if the types of product would be expanded, i.e. bottled water, ice tea, etc. Since we would no longer have both Coke and Pepsi in both regular and diet,etc.,a wider range of products could be offered. For the Community Center and the outside parks, the Park and Recreation Commission met to discuss the issue. Two of the seven members present prefer Pepsi and were not in favor of an exclusive contract with Coke for that reason. The Commission on a five to two vote felt that it would be advantageous to enter into the proposed contract with Coke. Recommendation It is recommended that the City Council authorize the Mayor and Clerk-Administrator to enter into a five year contract with Coca Cola for the exclusive sale of Coca Cola products at City facilities including City Hall, Community Center, The Bridges, and City parks under the terms and conditions as outlined above.