HomeMy WebLinkAboutContract 36650-A1 STATE OF TEXAS
COUNTY Y F TA N § CITY SECRETARY CONTRACT NO. 36650'..)k
WHO AS, the City offort Worth. ("City" and Coca-Cola Enterprises Inc. d h a Coca-
Cola Bottling Company North Texas ("Vendor') made and entered into City of Fort Wore.
City Secretary Contract No. 36650, which was authorized by the City Council by M&C C-22654
on the 291h day of January, 2008 and
WHEREAS, the Contract involves for the fallowing project:
On January 29, 2008, &C C-22654) the City Council authorized rize the City Manager to exacta
an agreement with Public Enterprise Group (PEG) to assist in developing corporate partnership
revenue programs; are
WHEREAS, it has become necessary to amend the Contract to include an increased scope.
of word.
NOW, THEREFORE, City and Vendor, acting herein by and through their duly
authorized representatives, enter 'into the following agreement which amends the contract:
1.
The ontract amended to include the purchase of 12 once bottles of Dasani drinking
water, 12 ounce, and 20 ounce bottles of PowerAde by the case for the City of ort Worth.
Water Department during natural disasters, relief efforts, and water emergencies to
minimize customer inconvenience as services specified in M&C P-10874,, approved by
the City Council on the I I ch day, of November, 2008, a copy of which is attached hereto
, n
and incorporated herein. Emergency Pricing is as follows-,
r
C ES ''Product
12Z/3,55M L 06 CARBONATED DRINKS $6,00
12,Z/355,ML NR DASANI $5.25
�_500ML DAS,ANI $5.25
12 355M 6I R POWERADE POWER $8.75
20Z W1 D,E POWERADE $12.25
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2.
All other provisions of the Contract which are not expressly amended herein shall remain
in full force and effect.
Executed on this the 4th day of December, 2008.
ATTEST: CITY OF FORT WORTH
B .
Y
City Secretary Assistant City Manag V7Z
APPROVED AS TO FORM VENDOR:
Coca-Cola Enterprises Inc. d/b/a
Coca-Cola Bottling_Company of
North Te s
W B
Y:
Assistant City Attorney Na e: r i
Title: .
\p Company Address:
:ontraCL Authorizatioa.
! [a, l 3400 Fossil Creek Blvd
Fort Worth, TX 76137
Page I of 2
A* Ap-
Oty or Immort Worth, Texas
Mayor and Counci*1 Colmmulnicat,ion
COU NCIL ACTION: Approved on 1/2912008
11111 1111 MINOR 111 1 11 Jill I'll 11,11 Neill 1 1111 Wild 10 111111311 n 11111111 M 01'via 01
DATE',,# Tuesday, January 29, 2008
LOG NAME,* 60VENDING1 REFERENCE N0.: C-122664
S B
A It' A*ft
Authorize a Te�n-Tear Beverage C..0ontract w,ith Coca-Cola Boftling t;ompany and a Five-Year Snack
Vending Contract withl All Seasons Services, Inc.
I I I 111 11 11 ORION 11,; 1111 1 IN �SO I WIN N11101100 W Wool
RE(ZQ a
101
is recommended that the City Council authorize the City Manager to execute both a ten,-year beverage
agreement with Coca-Cola, Bottling Company and a five-year snack vending agreement with All Seasons
Services, Inc.
QISCUSSIQN.
On May 18, 2004, (M&C, C-2,0085) t'he City Council authorized the City, Manager to execute an agreement
with Public Enterprise Group (PEG) to assist in developing corporate partnership revenue programs. In
exchange for assisting the City, in Identifying and negotiating any partnership,contract, PEG would receive a
12, percent c�ommission on all revenue it ra,ises for the City �thro,ug,h such contracts. Since that time, PEG
has changed its name to Active Marketing Partnerships(AMP).
A staff' working group 'was formed in 2005 to work with AMP to gather information 11 identify and evaluate
potential partnership opportunities and perform additional tasks relevant to developing the program. The
most beneficial potential partnership was identified to be in the beverage/vending area.
Currently, a number of departments have their own rela,tionships/contra,cts with beverage and vending
I I I
vendors. Revenue is deposited into various accounts,, which makes it difficult to track and maintain. These
two multi-year contracts will allow identified groups who have a long-standing relationship to, continue, while
Identifying and capturing �the remaining beverage and vending opportunities. The relationship will a�llow for
improved revenue tracking for the City) increased revenue, from bath up-front payments and increased,
commission rates, improved service by hav�ing one company versus multiple vendors,, increased in-kind
donati�ons as well as special promo�tions/can advertisement opportunities,' etc.,
In January 2006, the City of Fort Worth decided to reissue a new Re�quest for Proposals (RFP) excluding
s ific locations originally included in th I I
ped I I e previous RFP. The City also amended the RFP to include city
golfcourses. 'The contract will includie *Identified beverage and vending machines in City buildings, Le., City
Hall, City Cafeteria, City Hall Annex,, librarlies,1 off-site city facilities, and recreation centersi. The estimated
revenue is based on a guaranteed marketing fee as well as.commission on beverage vending sales. A,MP
w�ilil receive 12 percent of revenue receiv�eld as part of this agreement and will be compensated only for
commissions on actual revenues received and depos,ited by the City.
During the course of'this evaluation, the City of Fort Worth Golf Division condu�ct,ed preference surveys with
golfers, who, responded that they preferred Coca-Cola 2, to I over Pepsi-Cola., Based on fe�edblack from
customers,, the comparlson of overall value, as well as, the comparison of the net present val�ue of each
proposal, the recom mend ation of staff and AMP, is, to award a ten-year contract to Coca-Cola Bottling
CompaiRl and a five-year contract,to All Seasons Services, Inc.
http://www.,cfwnet.org/counc*l me a 3�/4/2008
1 _packet/Reports/ _pr�in,t.,asp
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The estimated net revenue of the Coca-Cola, agreement 'is $1,343,602, which does not include A,MP"s
commiss,ion of,$16111,23,2. The City also could potentially receive $,280,000, in markefing in- l id and voleme
incentives.
The agreement with All Seasons,Services, Inc.,, calls for no guaranteed up front dollars. During the five-year
agreement,, the City of Fort Worth will receive 24.1 percent of the annual snack revenue received from all
applicable vending machines.
A total, of $373,000 will be provided to, key stakeholders (Public Events, Plarks, Golf,, Sports Advisory
Council, Cafeteria, etc.), for maintenance/operational costs and to match current contractual
agreements. "the City Manager's Office will continue to work with the Buidget Office in monitoring the
payment sc,h,ediu,le of'this agreement, as well as track revenue based on consumption on an annual basis.
FORMAT.1 RT1 0
-0 NLU I ATION.
The Finance Director certifies that the Budget Department is responsible for the collection and deposit of
revenue e!due to the City.
TO Fund/AtcountlCent FROM ft,p
, d/Apul,ot/Cent
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Ubmifted to Joe Paniagua (6191)
VptHea
Detwim At Kirk Slaughter(2501
4001itionall InforMation C ntar Anthony J. Snipes
http-,Hwww.cfwnet.org/c,ouncl,l_packet/Repoitsi/mc_print.a.<,)p 3/4/2008
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