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<br />REQUEST FOR <br />_COUNCIL ACTION <br /> <br />CITY COUNCIL MEETING DATE: <br /> <br />~ <br />~ <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />JUNE 21, 2004 <br />TITLE: <br /> <br />AMENDMENT TO AGREEMENT <br />PROVIDING VENDING MACHINES <br /> <br />FOR <br /> <br />APPROVED <br />D As Recommended <br />D As Amended <br />D Ordinance on 1st Reading <br />D Ordinance on 2nd Reading <br />D Implementing Resolution <br />D Set Public Hearing For <br /> <br />fA:t;-- <br /> <br />Ç)Jha. <br /> <br />CITY MANAGER <br /> <br />CONTINUED TO <br /> <br />---- <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Direct the City Attorney to prepare, and authorize the City Manager and <br />Clerk of the Council to execute an amendment to the agreement with Pepsi <br />Bottling Group to provide vending machines at City owned parks and <br />411[ecreational facilities. <br /> <br />PARK DEVELOPMENT/JOINT-USE CITY COUNCIL COMMITTEE <br /> <br />On May 4, 2004, the Park Development/Joint-Use City Council Committee <br />recommended that the existing contract be extended and that staff meet with <br />beverage companies to explore other opportunities to be included in a <br />request for proposal. <br /> <br />DISCUSSION <br /> <br />On May 3, 1999, the City entered into a three-year agreement with Pepsi <br />Bottling Group to provide vending machines at City-owned parks and <br />recreational facilities. The contract authorized 77 vending machines to be <br />installed at 43 locations throughout the City. Currently, there are 30 <br />vending machines in place at 14 locations, as some machines were removed by <br />request of the surrounding community. An amendment to extend the original <br />contract is requested for a period of 8 months to expire January 3, 2005 in <br />order to allow City staff to analyze other opportunities with beverage <br />companies to increase revenue. In the existing contract, the City receives <br />a 37% commission on all beverages sold through the vending machines. In <br />fiscal year 2002/2003, the total revenue generated by this contract was <br />$18,745. <br /> <br />~n May 4, 2004, the Park Development/Joint-Use City Council Committee <br />-'iscussed the existing Pepsi contract and requested that staff meet with <br />Pepsi and Coca-Cola to explore other opportunities for a beverage contract. <br /> <br />25G-1 <br />