Memorandum

City of Lawrence

Parks & Recreation Dept.

TO:	David Corliss, City Manager Cynthia Boecker, Assistant City Manager Diane Stoddard, Assistant City Manager
FROM:	Ernie Shaw, Interim Director Parks and Recreation Department
CC:	Frank Reeb Bobbie Walthall
Date:	November 26, 2008
RE:	Soft drink vendor for both fountain operations and vending machines

On October 31, 2008, the Parks and Recreation Department sent out a Request for Proposals to soft drink vendors to be an exclusive supplier of non-alcoholic beverages for both fountain operations and vending machines for a 5 year period at all Lawrence Parks and Recreation Department locations.

The fountain operation/concession stand sites are the Clinton Lake Adult Softball Complex, Eagle Bend Golf Course, Holcom Sports Complex, Lawrence Indoor Aquatic Center, Lawrence Outdoor Aquatic Center, Douglas County Fairgrounds Baseball Fields and Youth Sports Inc. There are a minimum of nine (9) vending machine locations at recreation centers and other locations.

We received proposals from the following vendors:

Seven-up Bottlers Group:  Did not meet specifications of RFP –would only provide (1) fountain operation at Eagle Bend other locations would have to be bottles and cans only.

Coca-Cola Bottling Co. of Mid America:  Did not meet specifications of RFP – Exclusive bottles and cans –No Fountain operations at any locations.

Pepsi-Cola General Bottlers, Inc: Offered numerous incentives, sponsorship opportunities and commission on product sold. Following are the incentives given for a 5 year contract.

• Commission, 30% on all full service vending bottles and 15% on all cans.
• $17,000 annually of each year of the 5 year contract ---$85,000
• Free products for programs of 50 cases of product each year of 12 oz cans ---$300
• Support special events each year worth $250 of certificates and tickets.
• Advertising in LPRD Activities Guide worth $600 each year
• $500 of program incentives, i.e. hats, t-shirts, event tickets, etc.

Recommendation:

Upon evaluation of the proposals we are recommending we enter into a contract with Pepsi-Cola General Bottlers, Inc., 1775 Kansas City Road Olathe, Kansas 66061 to be our exclusive supplier of non-alcoholic beverages for 5 years beginning January 1, 2009.  We will explain proposal more in detail if you desire.