SUBJECT/RECOMMENDATION:
Title
Approve an amendment to the Exclusive Non-Alcoholic Beverage Agreement between the City of Clearwater (City) and Coca-Cola Refreshments USA, Inc. (Coca-Cola), effective June 1, 2017 through September 30, 2022, to correct an omission in the original agreement regarding payments to the City from the Monster Fund and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On December 21, 2017, the City Council approved an agreement with Coca-Cola to provide services to the City to be the exclusive non-alcoholic beverage vendor for the City.
According to the agreement Coca-Cola will provide full service vending machines, a discounted price schedule for City and Concessionaire purchases and a Licensing Payment of $92,500 to be paid in five annual payments of $18,500. In addition, Coca-Cola, through a Monster Energy Drink Fund, was to contribute an additional $25,000 to be paid in five annual payments of $5,000. The total amount paid to the City would be $117,500 for the entire term ($23,500 per year).
Unfortunately, a paragraph detailing the Monster Fund and payment to the City was omitted from the original agreement and thus the need to amend the agreement to include a new paragraph detailing the payment of funds from the Monster Fund to the City of Clearwater as was approved in the original agreement. Without this additional paragraph, the City will only be receiving $18,500 per year from Coca-Cola as Monster Fund is to contribute the additional $5,000 per year.
All other conditions of the original agreement remain in place and this corrects the omission in the final intended agreement between the City and Coca-Cola.
APPROPRIATION CODE AND AMOUNT: N/A
USE OF RESERVE FUNDS: N/A