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 Peps...
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