Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH PEPSI BEVERAGES COMPANY FOR PROVISION OF SOFT DRINKS AND RELATED BEVERAGES AT THE ELLSWORTH MEADOWS GOLF CLUB.
Executive Summary: The city administration is requesting City Council's approval to enter into a contract with the Pepsi Beverages Company for the pouring rights for soft drinks and related beverages (non-alcoholic) at the Ellsworth Meadows Golf Club. The pouring rights contract period will commence January 1, 2013 and conclude December 31, 2019.
Body
Legislative History
November 19, 2012 - Resolution #12-152: A RESOLUTION AUTHORIZING THE CITY MANAGER TO ADVERTISE FOR AND RECEIVE AND REVIEW PROPOSALS FOR THE RIGHT TO PROVIDE SOFT DRINKS AND RELATED BEVERAGES AT ELLSWORTH MEADOWS GOLF CLUB FOR A CONTRACT PERIOD OF JANUARY 1, 2013 THROUGH DECEMBER 31, 2019.
The current pouring rights contract with Pepsi Beverages Company expired December 31, 2012.
Purpose & Explanation
The City Administration is requesting City Council's approval to enter into a contract with the Pepsi Beverages Company for the pouring rights for soft drinks and related beverages (non-alcoholic) at the Ellsworth Meadows Golf Club. The pouring rights contract period will commence January 1, 2013 and conclude December 31, 2019.
The Ellsworth Meadows Golf Club spends on average $13,000 annually on soft drinks and related (non-alcoholic) beverages. Thus the total estimated value of this contract over the seven year period is approximately $91,000.
The pouring rights contract has a positive fiscal impact on Ellsworth Meadows Golf Club. In summary, for the exclusive pouring rights for soft drinks and related beverages (non-alcoholic) at Ellsworth Meadows Golf Club, the contract holder provides the golf course with discounted unit costs for beverages in addition to marketing support funds. The value of these contract items are found below.
A one-time upfront payment of $12,000.
In year 2 and 4 Pepsi will provide $2,500 in support funds.
Pepsi will rebate $3.75 on all 24 pack products purchased.
Pepsi will rebate $2.22 on all 12 pack products purchased.
National PGA Program will rebate $2.99/gallon on all fountain products and $.75 on all 24 pack products purchased.
The total rebate and incentive funding is valued at $40,604 over the 7 year agreement.
Timing Considerations
The pouring rights contract period will commence following City Council' approval and then conclude December 31, 2019.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Suggested Action
Recommendation
Based on the pricing submitted, past work performance, and meeting the contract requirements, staff recommends that City Council approve the Resolution authorizing and directing the City Manager to enter into a contract with the Pepsi Beverages Company, 2351 Edison Blvd., Twinsburg, Ohio 44087 for the right to provide soft drinks and related beverages (non-alcoholic) at the Ellsworth Meadows Golf Club.
Submitted by,
A. Bales, City Manager,
S. Schroyer, Asst. City Manager,
T. Wash, Ellsworth Meadows Golf Club Manager/Superintendent