HomeMy WebLinkAboutFCS-14-011 - P13-063 - Exclusive Cold Beverage Agreement - Non Alcoholic
REPORT TO:Committee of the Whole
DATE OF MEETING:
2014-01-27
SUBMITTED BY: Larry Gordon, Director of Supply Services, 519-741-2200
ext. 7214
PREPARED BY:
Steve Rudak, Buyer, 519-741-2200 ext. 7213
WARD(S) INVOLVED:
N/A
DATE OF REPORT:
2014-01-16
REPORT NO.:
FCS-14-011
SUBJECT:
P13-063 – Exclusive Cold Beverage Agreement, Non
Alcoholic
RECOMMENDATION:
That Proposal P13-063 – Exclusive Cold Beverage Agreement, Non Alcoholic, be awarded to
PepsiCo Beverages Canada, Cambridge, Ontario,
for a minimum allowance of $48,538.
annually, totaling $242,690.00 plus H.S.T., for five (5) year contract, with an option to renew for
one (1) additional five (5) year term.
BACKGROUND:
The City invited qualified cold beverage manufacturers to respond to an RFP for the exclusive
right to over the counter cooler sales, the exclusivity of fountain beverage sales, and exclusive
cold beverage vending and advertising at specified “Enterprise” operated recreational facilities:
Kitchener Memorial Auditorium Complex, Activa Sportsplex, Sportsworld, Lions, Don McLaren,
Grand River, Queensmount Arenas, the Doon Valley and Rockway Golf Courses.
The successful proponent will install, maintain and repair all proponent owned equipment and
materilas proposed for the sale of their products. The revenues generated from the agreement
are allocated annually to Enterprise operating budgets.
REPORT:
Proposals were advertised publicly on the City of Kitchener website and the Internet through the
Ontario Public Buyers Electronic Tendering Information System. Proposal documents were
downloaded by nine (9) interested parties, and by the closing date of Wednesday October 20,
2013, two (2) proposals had been received.
The following proposals were received:
PepsiCo Beverages Canada Cambridge ON
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Coca-Cola Refreshments Canada Brampton ON
The proposals were reviewed by K. Kugler, Director of Enterprise and P. Pickard, Manager of
KMA & Community Arenas, who concur with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy
framework.
The City of Kitchener’s purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
FINANCIAL IMPLICATIONS:
The Enterprise Division budgets for this contract as an annual revenue within the operating
budget. The value of the contract over the initial term decreased five percent (5%) from the
previous agreement.
COMMUNITY ENGAGEMENT:
Potential vendors are informed of bid opportunities through the public posting of bid documents
as outlined in the City’s Purchasing By-Law. Vendors, local media and the general public are
informed of purchasing recommendations to Council through the public reports which are
included with the Council agenda the week prior to the Council meeting.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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