HomeMy WebLinkAbout5.l. Community Center Agreement with Coca-Cola c� E �
CITY OF ROSEMOUNT
EXECU7CIVE SUI�tARY FOR ACTION
CITY COUNCIL MEETING DATE: December 21, 1993
AGENDA ITEM: Community Center Agreement AGENDA SECTION:
with Coca-Cola Consent
PREPARED BY: Jim Topitzhofer, Community AGENDA NO.
Center Manager ,��
ATTACHI�.ENTS: Agreement with Coca-Cola, AP ' VFD BY: �
Agreement with Pepsi �',�.Gl�
After numerous meetings with vendors, Coca-Cola has presented the most
lucrative proposal for beverage vending in the Community Center. In
exchange for exclusively offering Coca-Cola beverages in vending machines
and concessions at the Center, Midwest Coca-Cola Bottling Company will :
1) Pay $6 .20 commission per case of beverages sold in vending machines,
fully vended by Coca-Cola (for $ . 65 vend price) . Pepsi offers only
$3 . 60 per case at the same vend price.
2) Furnish all dispensing equipment free of charge (two concession
dispensers and six can dispensers) .
3) Furnish menu boards, and two stadium clocks, free of charge .
4) Furnish two portable wet bars (for banquet room) , free of charge.
5} Pay $2 , 000 per year for five years to help defray Community Center
costs . Pepsi offers only $1, 500 per year.
6j Provide $500 of Coca-Cola product and custom banner for the Grand
opening, free of charge.
_ The City Attorney has reviewed Coca-Cola' s proposal .
I recommend Midwest Coca-Cola Bottling Company for vending services based
upon their exceptional proposal .
RECOMMENDED ACTION: Motion to approve the Midwest Coca-Cola Bottling
Company' s proposal for beverage vending in the Community Center.
CODNCIL ACTION:
, ,
�
Proposal For
CITY OF ROSEMOUNT
�Ol�l��IUNI7:�Y CENTER
December 10, �.993
, ,
�Agreement for the exclusive beverage business at:
ROSEMOUNT COMM�CJNI7:'Y'
CENTER
The terms of this agreement would be for five {5}
years from acceptance date of this agreement.
Agreement for I�osemount Community Center
Page 2
13ecember 10, 1993
EQUIPMENT:
Midwest Coca-Cola Bottling will furnish all dispensing equipment needed on a
loan basis. Equipment to include can vending, pre-mix and post-rnix dispensers.
All maintenance seivice and installation of Coea-Cola equipment will be
provided at no cost to the Rosemount Community Center.
PRODUCTS:
Tlus agreement includes Coca-Cola soft drinks, ��endota Springs Mineral
Waters, Minute Maid Juices, Nestea Ice Tea, post-mix, pre-mix, trademark cups,
CO2 and trademark eaposure. We guarantee our products to be competitively
priced��ithin our industiy. See attached for current product pricing.
FULL SERVICE PROGRAM:
Midwest Coca-Cola �;�ill furnish and maintain all beverage vending machines.
The vending machines «�ill be regularly sen�ieed by a uniformed Coea-Cola full
s�n�iee employee. .All product sales are computer tracked ��ith Midwest Coca-
Cola responsible for all refunds.
There «�ould be a com�nission paid on each ease sold through the vending
maclunes on a montlily basis. The commission paid per case would depend on
the vend priee per ean Commission rates are as follows:
Per Can Vend Priee Commission Per Case
$ .50 $2.90 �
.55 4.00
.60 5.10
.6� 6.20
.70 7.30
.75 8.40
(paid on soft drinks and mineral water)
Agreement foi• Rosemount Coinmunity Center
Page 3
December 10, 1993
Per Can ��end Price Commission Per Case
� .65 $3.60
.70 4.80
.75 6.00
.80 720
.8j 8.40
(commissions paid on juices)
PROMOTIONAL SUPPORT:
lvlidwest Coca-Cola will provide point-of-sale support materials such as menu
boards and consumer communication pieees, plus assist v��th future development
of other promotional ideas to increase future vending and concession revenues.
MARKET SUPPORT:
Midwest Coca-Cola Bottling_will issue the City of Rosemount Community
Center a check for �2,000.00 per year for the length of the agreement (five years
from acceptance of contract) for the commitment to seive Coca-Cola products
exelusively.
Midwest Coea-Cola Bottling looks forward to our association t��ith the City of
Rosemount Community Center.
, � i
Darryl Robert keith Oldre
Sales Representative District Manager
Cold Drink Division Cold Drink Division
Date of Acceptance
Edward B. McMenomy�, Mayor Ron`��asmund
City of Rosemount City of Rosemount Administrator
Pat Corcoran, Sales �-lanager
i��id���est Coca-Cola Bottling Co.
' " ` DEC E 'S3 1���4 FROM PEPSI-�U�NSUILLE MU TO 94235203 PRGE.�b9i��y
PEPS!-COLq CpMPANY �
� 1300£AST C�1F�RO.o.Q, BURNSVILLE.MINN£SOTA 5533;•�512}$gp.ggrtp
d�cembe� 3, 1993
Rosemount National Guard Armory 8�, Community Center
Rosemount, MN
This letter sets forth the 5-year agreement (agreement} for the period December
'1993 through December 1998 (the term} between Pepsi-Coi� Company ("Pepsi-
Cola"} and Rosemounf National Guard and Armory and Gornmunity Center (the
"Customer") relating to the purchase by the Customer from Pepsi-Co(a of pepSi_
Cola of Pepsi-Co(� Premix Products (th� Premix Products") to be sold in the
customers outlet, and the �urchased of can products to be consumed c�n
premise.
Year 1 �4r�vance
Promptly after the execu#ion of the agreement, Pepsi-Cflla w;!! advance to the
Cusiorr�er Support �"unds ("the Supparf Funds") in t�e totai amounf of$'1,5Q0.00_
Prornptly foltowing the end of the first year the Support Funds will be $'E,500.00
per year.
Full S�rvi�e Vending
Pepsi-Cofa wilt provide Fufl Service Vending fo the Customer, for the 5-year#erm
of the Contract, this inclUdes a!! equiprnent maintenance at no charge. Th�
Customer shalf be paid commission at a rate of$.Z 5 per can or $3.60 per case
every 4 weeks. Custome�agrees to Pepsi-Cola Fu(1 Service Vending far the full
term of contract, Vending machine rate wi11 be set at $.65.
Customer agrees to fet Pepsi-Coia futly merchandise the facility in an effc�rt to
develop a profitab(e partnership_
Customer agrees Pepsi-Col� wil! be exclusive nan-alcQholic beverage provider.
Pepsi-Cola Representative Manager
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