SUBJECT/RECOMMENDATION:
Title
Approve an Exclusive Non-Alcoholic Beverage Agreement between the City of Clearwater (City) and Coca-Cola Refreshments USA, Inc. (Coca-Cola), from November 8, 2017 through September 30, 2022, to provide full service beverage vending machines and products to city facilities and city events; approve a blanket purchase order to Coca-Cola for $150,000 per year for each year of this agreement and authorize the appropriate officials to execute same.
Body
SUMMARY:
On September 9, 2011, the City Council approved an agreement with Coca-Cola to provide services to the City to be the exclusive non-alcoholic beverage vendor for a five-year period to begin June 1, 2012 and ending May 31, 2017. Coca-Cola agreed to continue the services on a month by month basis until a new Request for Proposals (RFP) and agreement could be issued.
On March 31, 2017, the City issued RFP 21-17, soliciting potential vendors to become the non-alcoholic beverage vendor for the City. The City received two proposals: Pepsi Beverages Company and Coca-Cola Refreshments USA, Inc. The proposals were evaluated based on successful experience, longevity of provision of services, a price schedule for discounted products, a proposed Licensing Payment, and proven financial stability.
Based on the evaluations, the Selection Committee recommends Coca-Cola to continue to be the city supplier of non-alcoholic beverages for the next five years from November 8, 2017 through September 30, 2022 to 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, will contribute an additional $25,000 to be paid in five annual payments of $5,000. The total amount paid to the City will be $117,500 for the entire term ($23,500 per year).
The scope of services will be to provide full service vending machine services for the sale of permitted beverage products at designated City facilities as well as provide products used at City concessions and City events.
This agreement is for five years, with an option to renew for one five-year period.
APPROPRIATION CODE AND AMOUNT:
Funding for the blanket purchase order will come from a variety of general fund cost centers but primarily from Special Events (010-01804).
USE OF RESERVE FUNDS: N/A