HomeMy WebLinkAbout25G - VENDING MACHINES
REQUEST FOR
_COUNCIL ACTION
CITY COUNCIL MEETING DATE:
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CLERK OF COUNCIL USE ONLY:
JUNE 21, 2004
TITLE:
AMENDMENT TO AGREEMENT
PROVIDING VENDING MACHINES
FOR
APPROVED
D As Recommended
D As Amended
D Ordinance on 1st Reading
D Ordinance on 2nd Reading
D Implementing Resolution
D Set Public Hearing For
fA:t;--
Ç)Jha.
CITY MANAGER
CONTINUED TO
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FILE NUMBER
RECOMMENDED ACTION
Direct the City Attorney to prepare, and authorize the City Manager and
Clerk of the Council to execute an amendment to the agreement with Pepsi
Bottling Group to provide vending machines at City owned parks and
411[ecreational facilities.
PARK DEVELOPMENT/JOINT-USE CITY COUNCIL COMMITTEE
On May 4, 2004, the Park Development/Joint-Use City Council Committee
recommended that the existing contract be extended and that staff meet with
beverage companies to explore other opportunities to be included in a
request for proposal.
DISCUSSION
On May 3, 1999, the City entered into a three-year agreement with Pepsi
Bottling Group to provide vending machines at City-owned parks and
recreational facilities. The contract authorized 77 vending machines to be
installed at 43 locations throughout the City. Currently, there are 30
vending machines in place at 14 locations, as some machines were removed by
request of the surrounding community. An amendment to extend the original
contract is requested for a period of 8 months to expire January 3, 2005 in
order to allow City staff to analyze other opportunities with beverage
companies to increase revenue. In the existing contract, the City receives
a 37% commission on all beverages sold through the vending machines. In
fiscal year 2002/2003, the total revenue generated by this contract was
$18,745.
~n May 4, 2004, the Park Development/Joint-Use City Council Committee
-'iscussed the existing Pepsi contract and requested that staff meet with
Pepsi and Coca-Cola to explore other opportunities for a beverage contract.
25G-1
Amendment to Agreement for
Providing Vending Machines
June 21, 2004
Page 2
The Committee agreed to the extension of the existing contract to allow
sufficient time for analysis and preparation of a Request for Proposal.
FISCAL IMPACT
Revenues generated by this action will be deposited into the
Machine Concession Revenue Account (account no. 11-01-5586-275).
Vending
APPROVED AS TO FUNDS AND ACCOUNTS:
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Execut .. e Director fJ
Finance & Management Svcs.
Agency
Jon" ip" Ribble,
Executive Director
Parks, Recreation and
Community Services Agency
25G-2