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REQUEST FOR COUNCIL ACTION DATE: 1 /26/04 ITEM NO: 3.1 1 Department Approval: Manager Reviewed: Agenda Section: �rn��c�t Item Description: R��1 of Exclusive Beverage Agreement with Midwest Coca-Cola Bottling Company BACKGROUND In 1994 and 1999, the City of Roseville entered into a contract with Midwest Caca- Cola Bottling Company for sponsorship of Roseville Parks and Recreation activities. Among other items, the monies contributed by Coca-Cola have been used to offset the cost of marketing and promotions of Roseville Parks and Recreation facilities and activities. In return for their sponsorship, Coca-Cola was given exclusive rights for beverage products at all Roseville Parks and Recreation facilities for the length of the agreement. The second five year agreement is expired. In November of 2003 staff, with a review � the City Attorney, distributed a R ue f t�ra os.a�'s from all known soft drink suppliers. Coca-Cola responded v�� s�-n e I}� ��ame proposal as the previous contract. Pepsi Bottling Group was the only other responder, but late and the proposal did not include any cash contribution and the product commission was 5% less than Coca-Cola. The Parks and Recreation staff has worked with the City Attomey to review the attached agreement. A highlight summary of the proposal as compared to the expiring contract is as follows: Current Contract Proposed Coca-Cola Citv Receives: � for �ve vears) $80,000 in cash $80,000 in cash 40% (25%) commissions 40% (25% PowerAde} Free product at major events ($12,500) $12,500 Marketing and promotions ($5,000) $5000 Total value (5 years): $97,500 plus commission $97,500 plus com.