Soft Drink Agreement for Leisure Services Facilities_Coca Cola Copyright 2014
City of Dubuque Consent Items # 6.
ITEM TITLE: Soft Drink Agreement for Leisure Service Facilities
SUMMARY: City Manager recommending approval of a three-year
Coca-Cola agreement with Atlantic Bottling as the exclusive
soft drink provider for the Bunker Hill Golf Course,
McAleece concession, Flora and Sutton Pools concession
and the Port of Dubuque Marina.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Exclusive Soft Drink Agreement for Leisure Services- City Manager Memo
MVM Memo
Staff Memo on Exclusive Soft Drink Agreement Staff Memo
Coke Agreement Supporting Documentation
Coke Proposal Supporting Documentation
Request for Proposals Supporting Documentation
THE CITY OF Dubuque
DUB TENWinrkaCky
1111.
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Exclusive Soft Drink Provider Agreement for Leisure Service Facilities
DATE: February 27, 2017
Two proposals were received in response to a Request for Proposals for an exclusive
soft drink provider for the Bunker Hill Golf Course, McAleece concession, Flora and
Sutton pool concession and the Port of Dubuque Marina.
After review of the proposals by the Park and Recreation Commission, Leisure Services
Manager Marie Ware recommends City Council approval of a three year Coca-Cola
agreement with Atlantic Bottling as the exclusive soft drink provider for the Bunker Hill
Golf Course, McAleece concession, Flora and Sutton Pools concession and the Port of
Dubuque Marina.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Marie L. Ware, Leisure Services Manager
THE CITY OF Dubuque
All-America City
� 1 1
Masterpiece on the Mississippi
2007•2012 •2013
TO: Michael C. Van Milligen, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Exclusive Soft Drink Provider Agreement for Leisure Service Facilities
DATE: February 14, 2017
INTRODUCTION
The purpose of this memorandum is to recommend approval of the attached Coca-Cola
Agreement as the exclusive soft drink provider for the Bunker Hill Golf Course,
McAleece concession, Flora and Sutton pool concession and the Port of Dubuque
Marina.
BACKGROUND
In 2012 Leisure Services entered a five-year exclusive soft drink provider agreement
with Coca-Cola for Bunker Hill Golf Course and McAleece concessions. They have had
two other 5 year agreements prior to 2012. Recently staff prepared an RFP for
Exclusive Soft Drink rights for the Golf Course and McAleece but also added Flora and
Sutton pools and the Port of Dubuque Marina.
DISCUSSION
Staff received 2 proposals from local venders. One from Atlantic Bottling (Coca-Cola
(Coke)) and the other from Pepsi-Cola Bottling Company (Pepsi). This year's RFP was
shortened to 3-years in an effort increase the competitive bidding process.
Both companies are well established within the Dubuque community. The attached
proposal from Coke provides the City of Dubuque with a higher funding program as well
as greater ordering/inventory freedom. Coke's proposal will provide the City with a
payment of$6,000 per year to go back into operating revenue. Pepsi's proposal was
for $2,500 per year. Coke also pledges to spend up to $600 for goods and/or services
from Leisure Services annually. These could be in the form of golf rounds, swim
passes, pavilion rentals, etc. Pepsi did not provide any further monetary pledge.
Within their proposal, Coke also will agree to no minimum orders. This will allow staff to
better regulate inventory as well as minimize the amount of product remaining at the
end of each season.
The proposals were presented to the Park and Recreation Commission. The
Commission voted on February 14, 2017 to recommend acceptance of Coke's proposal.
The City Attorney's office has also reviewed contract agreement.
ACTION REQUESTED
I respectfully request and recommend City Council approval of the 3-year Coke
agreement with Atlantic Bottling as the exclusive soft drink provider for the Bunker Hill
Golf Course, McAleece Concession, Flora and Sutton Pools concession and the Port of
Dubuque Marina.
Attachments
Memo prepared by: Dan Kroger, Recreation Division Manager
2
Dubuque Lesiure Services
2200 Bunker Hill Road
Dubuque, IA 52001
ATLANTIC BOTTLING
This agreement is entered into between Dubuque Lesuire Services hereinafter referred to as "subject
properties" and ATLANTIC BOTTLING COMPANY who agree to the following terms and conditions:
TERMS OF AGREEMENT
1. TERM. Agreement Term is for a period of (3) three years beginning April 1, 2017. Atlantic Bottling
agrees to pay exclusivity sponsorship according to the following payment schedule:
Y1-3: Payment of $6600.00
Atlantic Bottling will receive $600.00 worth of golf passes each year to Bunker Hill Golf Club
to be used by Atlantic Bottling for customer and employee entertainment.
Payments shall be mailed to:
Dubuque Leisure Services
2200 Bunker Hill Road
Dubuque, IA 52001
Attn: Dan Kroger
2. EXCLUSIVE DEFINITION. Subject properties agree to offer Coca-Cola fountain products and ready -
to -drink bottled products exclusively during term.. Customer shall purchase all Atlantic Bottling
Products (and cups, lids, and CO2, if applicable) directly from Atlantic Bottling Company. No
Competitive Products may be sold, dispensed, sampled or served anywhere at the Facility.
3. PRICING. See Schedule A. PRICING
Atlantic Bottling extends national account pricing on post mix fountain. Pricing is set by Coca-Cola
North America and may be subject to price increases on a calendar year basis. Bottle/can pricing may
be subject to no more than a 5% increase on a calendar year basis. However, the price ceilings are
subject to additional adjustments greater than stated ceilings in the event of a substantial and
unforeseeable increase in a major component of the bottler's cost of goods, manufacture, or delivery. If
credit terms are granted, payment terms are net 21 days.
4. EQUIPMENT See Schedule B. EOUIPMENT
Customer represents and warrants that electrical service at the Facility is proper and adequate for the
installation of Equipment, and Customer agrees to indemnify and hold Atlantic Bottling Company
harmless from any damages arising out of defective electrical services. Further, Customer represents
and warrants that water service, including water pressure and quality, is adequate for dispensing post
mix fountain products if applicable. Customer agrees to indemnify and hold Atlantic Bottling
Company harmless for any damages arising out of disruption of electrical supply to carbonator which
may cause water leaks.
11 Page
ATLANTIC BOTTLING
lU't
Atlantic Bottling Company shall provide repair service at no cost to Customer for all regular service.
Any service necessitated by damage or adjustments to the equipment resulting from misuse, abuse,
service by unauthorized personnel (collectively called "Special Service Calls") shall not be provided
free of charge. Charges for Special Service Calls will be charged at Atlantic Bottling's current rate,
and will be deducted from earned funding or invoiced to the Customer.
8. TERMINATION
If Subject Properties breaches any of its obligations set forth in the Agreement, then at its option and
not as its sole remedy, Atlantic Bottling Company may terminate this Agreement, and Subject
Properties shall (i) return any Equipment, and (ii) pay to Atlantic Bottling Company the unearned
portion of the Conversion Fees.
9. CONFIDENTIALITY
Each party agrees to keep the terms of this proposal confidential. No party will disclose the terms of
this proposal in any way without the prior written consent of the other party, unless required to do so
by operation of the law and then only after prior reasonable consultation with the other party.
Authorized 6.istomer Signature
Michael C. Van Milligen
Printed Name
City Manager
Title
3/7/17
Date
dior,woreil6r Atervoz 36 i7
At antic Bottling Company Com an Title bate
21 Page
646-6
ATLANTIC BOTTLING
Caa
SCHEDULE A: PRICING
Product Price Case
5 Gal BIB $14.79 Per Gallon
2.5 Gal BIB $15.42 Per Gallon
2.5 Gal BIB Tea $14.96 Per Gallon
20oz CSD $18.00 Case of 24
20oz Dasani $13.50 Case of 24
12oz CSD $8.00 Case of 24
15.2oz MMJTG $21.42 Case of 24
12oz Dasani $11.00 Case of 24
16oz Energy $32.50 Case of 24
Tum -e Yummies $8.30 Case of 12
18.5oz Gold Peak $13.42 Case of 12
20oz PowerAde $18.50 Case of 24
** Deposits not included
SCHEDULE B: EOUIPMENT
During the Term, Atlantic Bottling Company will loan to SUBJECT PROPERTIES beverage
equipment at no cost (except as prohibited by law, rule or regulation, in which case the rent charged
shall be the lowest legal rate available). Loaned beverage equipment is provided for the sole purpose
of Selling Atlantic Bottling Products exclusively.
Atlantic Bottling shall retain title to all loaned equipment. Equipment quantities shall be mutually
agreed upon.
Atlantic Bottling agrees to provide the following equipment:
(1) Bar Gun
(1) Back Room Kits
(2) Large Single Door
(2) 2 door cooler
31 Page
Locations under Dubuque Lesiure Services
• Flora Pool
• Sutton Pool
• Bunker Hill Golf Club
• MaCleese Ball Fields
• Port of Dubuque Marina
CerglieK
ATLANTIC BOTTLING
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41 Page
The
CocamCola
Advantage
THE CITY OF
DUB E
Masterpiece on the Mississippi
Dubuque Leisure Services
Thank you
for the opportunity to continue to be
the exclusive Beverage Partner at
City of Dubuque Leisure Services Department
ATLANTIC BOTTLING
Choosing Your Beverage Supplier Begins With Selecting
The # 1 Brands And Packages
F,
Why Coca-Cola?
Coca-Cola offers the brands, beverages, packages and equipment to satisfy consumer needs for every beverage occasion.
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COCA-COLA BRANDS ARE #1 Preferred
In key beverage categories Brands
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#1 Cola! #1 Diet Cola' #1 Orange Sodas #1 Caffeine Free Diet Cola' #1 Share Growth
Water vs. competitions
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#1 Lemon Lime #1 Fruit Juice/Juice Drink #1 Root Beer' #1 Premium Water #1 Enhanced Bottle Water
Flavored Soft Drink' Company in the U.S.'
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3 out of 4
restaurants refresh their customers with Coca-Cola Beverages'
Just one of the reasons,the Coca-Cola®brand is one of the most loved and recognized trademarks in the yovid.
In the US,per Beverage Digest Fact Book(BDF B)2010., 2Nhalser AMC YTD 12110., xpoSt Mix Availability Study
Point of Sale & Branded Materials
WhyCoke? 1noVatlVe P�lerchandise Ideas Tailored to Gro,
Your Total Business
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Term & Consideration
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Atlantic Bottling agrees to provide the following:
Funding: , !R
• $6,000 per year payments/ 3year term
• $600 per year spent through the Leisure Services
o Atlantic Bottling Dubuque; will purchase $600 worth of '•. • •
goods from Leisure services. (Golf Passes, Pool reservations •• • � '�•� '
& passes, etc.) ••
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Pricing: Pricing will not increase more than 5% calendar year.
• 20oz Sodas- $18.00
• 12oz can Sodas- $8.00
• 20oz PowerAde- $18.50
• 20oz Dasani Water- $13.50
• 15.2oz Minute Maid Juices- $21.42
• 12oz Dasani Water- $11.00
• Tum-e Yummies- $8.30 (12count) /
• 18.5oz Gold Peak tea- $13.82 (12count)
• 16oz Monster Energy- $32.50
• Fountain BIB- $14.79 per gal. (SGal- $73.95/ 2.5G-$36.98)
Dubuque Leisure Services agrees to:
• Agreement Term: 3 years beginning April 1, 2017 through March 31, 2019.
• Offer Coca-Cola and allied brands, exclusively through vending, concessions, and special
events held on properties throughout agreement term.
Mechanical & Product Service
Mechanical Service Free Service!
Mechanical Service is provided FREE of charge.
Service during normal business hours.
On call service after hours/weekends:
All Technicians are Nextel dispatched to ensure quick response time
(New Dispatch system through Atlantic Bottling= QUICKER RESPONSE).
Product Delivery
One Representative through Atlantic Bottlingfor all Leisure Services locations.
(Zach O'Shea will be contact person for all 5 locations)
Each location will have a set delivery day every week, being contacted for
orders 48 hours prior (Wednesday Delivery = Monday order)
NO MINIMUM DELIVERYII
Emergency deliveries are available!
BOTTLING
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ITHE CITY OF
DUB E
Masterpiece an the Mississippi
REQUEST FOR PROPOSAL (RFP)
THE CrrYOF ISSUE DATE: January, 25 2017
CONTACT: Dan Kroger
DT 7R PHONE NO: 563-589-4310
l.J 1J FAX NO: 563-589-4391
Masterpiece on the Mississippi EMAIL: dkroger@cityofdubuque.org
SUBMIT PROPOSAL/OFFER PRIOR TO: SUBMIT TO:
CLOSING DATE: February8, 2017 See Page 4
CLOSING TIME: 12:00 P.M. local time FAX/EMAIL NOTACCEPTED
DESCRIPTION:
Exclusive Soft Drink Vender for Leisure Services Concession Facilities
RECEIPT OF PROPOSAL ACKNOWLEDGEMENT
If you are considering a response to this RFP, please mark the box to
o the left, fill in the information below and return this sheet as a confirmation that
you received this RFP.
NO RESPONSE REPLY
E:) If you do not want to respond to this RFP at this time, please mark the box to
the left, fill in the information below and return this sheet only.
COMPANYNAME: DATE:
MAILING ADDRESS:
CIN/STATE: ZIP CODE:
AUTHORIZED SIGNATURE:
PRINTED NAME:
TITLE OF AUTHORIZED REPRESENTATIVE:
EMAIL: PHONE:
1
THE CITY OF
DUB E
Masterpiece on the Mississippi
Request for Proposals
Exclusive Soft Drink Vender for Leisure Services Concession Facilities
Leisure Services Department
2200 Bunker Hill Rd
Dubuque, Iowa 52001
2
INTRODUCTION
The City of Dubuque, Leisure Services Department, is seeking an exclusive soft drink
provider for the Bunker Hill Golf Course, Port of Dubuque Marina, Flora and Sutton
Swimming Pools and McAleece Park and Recreation Area. Proposals will be reviewed
by the Park and Recreation Commission with a recommendation made to the City
Manager and Council.
SCHEDULE
Release Request for Proposals 01/25/2017
Deadline for Questions 02/03/2017
Proposal Due Date 02/08/2017
Contract and Insurance Work with Chosen Vender 02/10/2017
Recreation Commission Approval of Recommended Vender 02/14/2017
City Council Approval of Recommended Firm 02/20/2017
Earliest Start Date 03/01/2017
PAST HISTORY INFORMATION
Fiscal year expense summaries are as follows:
Fiscal Year Swimming Bunker Hill Port of Dubuque McAleece
Pools Golf Course Marina Complex
FY16 $3,500 $13,000 $6,400 $6,050
FY15 $0 $13,500 $3,760 $4,000
FY14 $0 $15,266 $3,800 $7,183
MINIMUM PROPOSAL REQUIREMENTS
Each beverage distributor is responsible for the full scope of their proposal. The
purpose of this section is to communicate the minimum of what each proposal must
include.
Product list to be provided:
✓ 20 oz. bottles of soft drinks
✓ 12 oz. cans of soft drinks
✓ 20 oz. bottles of sport drinks, teas and juices
✓ 16 oz. Energy drinks
✓ 20 oz. bottles of water
✓ 1 liter bottles of water
✓ fountain drinks at Bunker Hill Golf Course and the Port of Dubuque Marina
3
• Price list with explanation of how price increases will be determined.
• Length of contract, three-year maximum, to begin March 1 , 2017
• Equipment, product and service that will be provided by the company.
• Promotional materials (signs, menu boards, price stickers) provided by the company.
• Delivery schedules and minimum order policies.
• Other incentives
• Summary of product local market share
SUBMISSION REQUIREMENTS
The City of Dubuque reserves the right to reject any and all proposals and to accept the
proposals judged to be in the best interest of the City. City may negotiate changes with
any distributor.
The City of Dubuque is not liable for any cost incurred by any distributor for submission
and execution of this agreement. Also, the City has the right to terminate this
agreement for any reason.
Proposals must be submitted no later than 12:00 p.m. on Wednesday, February 8,
2017.
DAN KROGER
RECREATION DIVISION MANAGER
2200 BUNKER HILL ROAD
DUBUQUE IA 52001-3010
dkrogerQcityofdubuque.org
4