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HomeMy WebLinkAbout2001-11-13 - AGENDA REPORTS - BEVERAGE VENDING PARTNERSHIP (2)CITY OF SANTA CLARITA AGENDA REPORT CONSENTCALENDAR, DATE: November 13, 2001 City Manager Approval/.ie_ Item to be presented by SUBJECT: BEVERAGE VENDING PARTNERSHIP DEPARTMENT: City Manager's Office RECOMMENDED ACTION City Council reject partnership proposals submitted by Coca-Cola Bottling Company and the Pepsi Bottling Group as insufficient and allow City Manager to commence negotiations. BACKGROUND On Tuesday, May 1, 2001 the City Council approved of pursuing an exclusive beverage vending partnership to advance corporate sponsorships and directed staff to solicit proposals from beverage vendors. City staff has completed the Request for Information and Qualifications (RFIQ) process. A Review Committee composed of six City staff members representing finance, recreation, planning and economic development reviewed proposals. Subsequent to review, there was a consensus amongst Committee participants that both partnership proposals fell short of meeting the City's expectations when compared to other Cities that have negotiated similar partnerships. Coca-Cola and Pepsi have been informed of the Committee's opinion and expressed interest in negotiating a partnership acceptable and beneficial to the City. At this point, the process requires that both proposals be rejected as insufficient before any negotiations can take place. The following table summarizes both proposals: po J P n Agenda Item: Coca -Co Pepsi 1. Contract Duration 10 years 10 years 2. Yearly Contribution Year 1 $ 5,000 Year 1 $ 10,000 Year 2 5,000 Year 2 10,000 Year 3 5,000 Year 3 10,000 Year 4 5,000 Year 4 12,000 Year 5 10,000 Year 5 12,000 Year 6 10,000 Year 6 12,000 Year 7 10,000 Year 7 15,000 Year 8 15,000 Year 8 15,000 Year 9 15,000 Year 9 15,000 Year 10 15,000 Year 10 15,000 TOTAL $95,000 TOTAL $126,000 3. Commission 30% of net profit 40% of net profit po J P n Agenda Item: 4. Average Projected Commission (per year) $30,659.66 $66,000.00 200 cases per year 0 100 cases per year 5. Product Donation 9 5 custom banners for ecial events -Beverage Vendor Entitlements 6. Number of Vending Machines 42 54 7. Territory Exclusivity (right to sell beverages at all future and Yes Yes - existing City properties). 8. Category Exclusivity (only soft or cold drink provider on City Yes Yes - properties and at City events). 9. Use of City Logo Wants use of City Logo on Wants use of City Logo banners and point-of-sale for the Metrolink Kiosks materials at marketing and banners. events. 10. Vendor Logo and Signage Wants Coca-Cola -signage Wants to place special at City events (main event trailers for entrances and food court concessions during areas). events 1. Other Entitlements • Wants to be excluded from future ordinances that prevent non -local vending. • Wants the right to cut back yearly contributions in the event of an unforeseen FISCAL IMPACT No fiscal impact identified at this time. ALTERNATIVE ACTIONS Other actions as identified by the City Council. ATTACHMENTS The following attachments are available in the City Clerk's Reading File: 1. Request for Information & Qualifications (RFIQ) 2. Pepsi Bottling Group Proposal 3. Coca-Cola Bottling Company Proposal sms/tina/community enterprise/agenda report 11-13-01.doc City of Santa Clarita 23920 Valencia Blvd. Phone Suite 300 (661) 259-2489 Santa Clarita Fax Califomia 91355-2196 (661) 259-8125 Website: www.santa-clarita.com REQUEST FOR INFORMATION AND QUALIFICATIONS FOR CITY MUNICIPAL MARKETING PARTNERSHIPS 1. INTRODUCTION The City of Santa Clarita is seeking to develop an exclusive long-term partnership with a non-alcoholic beverage distributor to provide beverage services for all City facilities and events and as a method of generating revenue for new capital and program improvements to City properties and facilities. The scope of such partnership agreements would include providing the official beverage distributor with territory exclusivity, category exclusivity, use of the City logo and marks, signage, access to points of sale, access to City publications, direct mailings, special events, and the provision of exclusive vending locations on City properties. To determine the best corporate partner and the exact benefit package that will be required in a partnership agreement, the City has provided the attached Request for Information and Qualifications (RFIQ) document for you to complete. Please respond to the attached RFIQ questions as completely as possible. You may include sample pictures or drawings to illustrate how your firm is proposing to implement the marketing partnership proposal. 0 PRINTED ON RECYCLED PAPER Page 2 of 12 2. WELCOME TO THE CITY OF SANTA CLARITA! The City of Santa Clarita is pleased to announce its innovative approach to enhance public service delivery through long-term partnerships with commercial enterprises. This exceptional opportunity opens the door to long-,gtanding, exclusive, up close and personal sales and promotional access to the thousands of people, that live, visit, work and play in one of the most advanced cities in America. Conveniently located 30 miles north of Los Angeles, the City of Santa Clarita with a population over 151,260 is bold and confident in its role as a premier community for raising families and building business. During the last 10 years Santa Clarita has been documented as one of the fastest growing regions in the United States and is predicted to be home to the largest concentration of business and industry in Southern California. Santa Clarita is proud to welcome future marketing partners to the City and is certain that you will find everything you need to secure a solid and profitable partnership. Here are just a few reasons why... > Santa Clarita's comprehensive transportation network makes the City easily accessible to visitors wanting to experience exciting recreational attractions, shopping and much more. Santa Clarita's public transportation includes the Santa Clarita Transit and Metrolink commuter rail service, which carry over 10,000 passengers daily from the San Fernando Valley and Downtown Los Angeles. California's principal north -south arterial, Interstate 5 and Highway 14 runs through the Santa Clarita Valley, resulting in an estimated 285,000 daily vehicle trips.' Santa Clarita demographics reveal 27 percent of the population falling between the ages of 0 to 17 (the highest of all age brackets) and an average age of 34. In addition, Santa Clarita's median household income stands at $66,575. 'CalTrans 1998 Report Page 3 of 12 There are a number of recreational and historical sites located in and around the City's boundaries. Among them are Six Flags Magic Mountain Amusement Park and Gene Autry's Melody Ranch. For water enthusiasts there are Castaic Lake, Lake Hughes, Lake Elizabeth, Lake Piro and Lake Pyramid. For hiking and picnicking, visitors and residents come to enjoy the Angeles National Forest, Placerita Canyon Nature Center, the historical Saugus Train Station, and Vasquez Rocks. )�- Based on FBI statistics, the City of Santa Clarita is the third safest city of its size in the nation, making it a desirable destination to live, work and play. )�- The City coordinates over 20 national and special events, which attract an estimated 69,000 visitors to the City every year. Some of the City's many events include: The award-winning Cowboy Poetry & Music Festival — an annual event held at the famous Melody Ranch Motion Picture Studio that celebrates the "Old West" through Cowboy humor, music, poetry and fine western art (Attendance: Over 18,000); The Santa Clarita Marathon — Visitors and residents have an opportunity to experience the beautiful scenery of Santa Clarita while running the Marathon, Half Marathon or the 5K (Attendance: Over 6,000); Concerts in the Park — held during the summer months, "Concerts in the Park" offers the community a chance to experience a variety of music ranging from Rock n' Roll, Blues, Country Western, Celtic Rock, Jazz and Classical Music in the great outdoors (Attendance: Over 25,000); and Emergency Expo — this annual one day Expo, held at the Saugus Speedway, provides emergency and product information and survival safety tips including an opportunity to "ask the experts" about what you and your family should do during disasters like earthquakes and floods (Attendance: Over 3,000). The City's Parks, Recreation & Community Services Department provides more than 200 programs which benefit tens of thousands of children all over the Santa Clarita Valley. Page 4 of 12 )�, The City commits much effort to maintain an informed and involved community. The City has facilitated three community strategic planning sessions (with an average 90% success rate) entitled Share the Vision, to give residents the opportunity to identify priorities and help create solutions for the future of our community. Our next community strategic planning session is scheduled to take place in the fall 2001. Seasons Magazine, published quarterly and mailed to all City residents offers information on special events, public services and the City's Recreation Program. . Hundreds of informational brochures are mailed out Citywide to inform residents of new public facilities, events and public services. . All City Council Meetings and Planning Commission Meetings are televised on public access. Every week citizens can receive up-to-date information on City issues, events, and interviews with key community leaders on This Week in Santa Clarita broadcasted on public access. An average of 2,655 people per day visit the City's web -page at www.santa- clarita.corn to easily access City information related to the operating budget, programs, transit, special events, local news, community profile, employment opportunities and much more. Leader Link, the City's new intergovernmental relations newsletter is published quarterly and distributed to elected officials, government organizations and agencies on the local, regional, state and federal levels. With over 12 parks and 16 miles of trails, City residents enjoy wide playing fields, picnic areas, and activities ranging from basketball, swimming, j . ogging, tennis, bike riding, volleyball and baseball. In spring 2002, three new parks are scheduled to open adding 37 acres of park space. Central Park — 40 acre park site with four lighted softball fields, four lighted sports fields, and a concession building for the sale of packaged foods. Page 5 of 12 0 Almendra Park — 4.3 acre park site with two children's' play areas, barbecues and basketball court. 0 Begonias Lane Park — 3.7 acre park site with a children's play area, multi- purpose playing field and basketball/volleyball court. M Bouquet Canyon Park — 3.7 acre park site with a corporate picnic area, sand playground, tennis courts, and ball diamond. Canyon Country Park — 17.3 acre park site with a 279 person occupancy recreation room, softball diamond, picnic area, children's play areas, fitness course, and a jogging1walking path. Newhall Memorial Park — 15 acre park with a 196 person occupancy recreation room, aquatic area, children's play area, basketball courts, softball diamonds, picnic tables and barbecues. North Oaks Park — 2.3 acre park with 84 person occupancy recreation room, aquatics area, children's play area, softball diamonds, picnic tables, and barbecues. Old Orchard Park — 5.4 acre park with an 83 person occupancy recreation room, children's play area, basketball courts, softball diamonds and multi-purpose grass area. Santa Clarita Park — 7.5 acre park with a 269 person occupancy recreation room, aquatic area, children's play area, basketball courts, softball diamonds, horseshoe pits, picnic tables, and barbecues. Valencia Glen Park — 5.5 acre park with 149 person occupancy recreation room, aquatic area, children's play area, multi-purpose ball fields, tennis courts, basketball court, picnic tables and barbecues. Valencia Meadows Park — 4.8 acre park site with 140 person occupancy recreation room, aquatic area, basketball courts, children's play area, softball diamond, picnic tables and barbecues. Bouquet Canyon Park— 10.5 acre park site with children's play area, corporate picnic area, basketball court, ball diamond and tennis courts. Page 6 of 12 )�- The City of Santa Clarita takes pride in providing quality facilities with a positive and inviting appearance for citizens, visitors and City staff. The Santa Clarita Sports Complex — located on a 20 -acre parcel, the Sports Complex provides a variety of athletic activities that can be enjoyed by the whole family. The Sports Complex grants access to indoor basketball and racquetball courts, and the Skate Park. Coming in the fall of 2001, the community can experience the highly anticipated $11 million Aquatics and Activities Centers. The Aquatics Center will feature two Olympic style pools, a zero depth pool for toddlers and a concession stand. The Activities Center will provide two multi-purpose banquet rooms, a Teen Center with an arcade and pool tables, Dance Room and a Computer Center. The Canyon Country JoAnne Darcy Library — making its debut in the summer of 2001, the new Canyon Country JoAnne Darcy Library is a 17,000 square foot sandstone structure featuring a courtyard, amphitheater, and a community room. This new development also made possible an innovative partnership between the City and College of the Canyons - - the creation of a computer lab, which will be maintained and staffed by the college. In exchange, the City will partner with the college to provide courses at the library facility, thus enhancing its educational value. The Santa Clarita Community Center — located in downtown Newhall, the Community Center presents a place where children and families can participate in a variety of recreational and educational activities in a safe and fun environment. The Community Center offers a diverse selection of classes including boxing, karate, ballet folklorico, and tutoring. Also available through the Community Center are programs that offer low or no cost after school care and field trip opportunities. City Hall — the City conducts business activities and formal meetings, including City Council, Planning Commission, Parks and Recreation Commission, and special community meetings at City Hall. City Hall is a three-story building and is located in close proximity to the Valencia Town Center, Valencia Library, and the Santa Clarita Court House. Page 7 of 12 Corporate Yard — the City's transit and maintenance operations (urban forestry, facilities, street and vehicle maintenance) are conducted at the Corporate Yard. Metrolink — the City owns and maintains three Metrolink Stations located in the communities of Saugus, Canyon Country and Newhall, which makes Santa Clarita the only City with three stations besides the City of Los Angeles. Page 8 of 12 3. DEADLINE REQUIREMIENTS The City of Santa Clarita must receive one original and six copies of the RFIQ no later than 5:00 ip.m., Wednesday, August 22,2001. For questions, please call Tina Haddad at (661) 255- 4909. All proposals as well as any modifications received after the hour and date specified above will not be considered. Submit RFIQ to: Tina Haddad, Administrative Analyst City Manager's Office City of Santa Clarita 23920 Valencia Boulevard, Suite 300 Santa Clarita, CA 91355 4. LEMTATIONS The City reserves the right to extend the time allotted for the RFIQ and to request a best and final offer should the City deem that it is in its best interests to do so. This RFIQ does not commit the City to award a contract, or to pay any costs incurred in the preparation of the proposal. The City reserves the right to accept or reject any or all proposals received as a result of this request, to negotiate with any corporate enterprise, or to cancel this RFIQ in part or in its entirety. The City may require the selected corporate enterprise to participate in negotiations, and to submit any revisions of their proposal as may result from negotiations. Page 9 of 12 5. RFIQ TIMELIKE 8/22/2001 Submission of RFIQ Packet 8/27/2001 to 9/14/2001 City Review of RFIQ Submissions 9/20/2001 Corporate Enterprises Contacted to Schedule Presentation 9/24/2001 to 9/28/2001 Presentation to City Staff 10/23/2001 Recommendation to City Council 6. PROPOSAL CONTENTS Submitted proposals must follow the format outlined below and all requested information must be supplied. Failure to submit proposals in the required format will result in elimination from proposal evaluation. F A. Cover Letter — Must include the name, address, and telephone number of the company, and be signed by the person or persons authorized to represent the Beverage Distributor. B. Table of Contents — Clearly identify material contained in the proposal by section and page number. C. Introduction — Describe and demonstrate an understanding of the partnership concept and objectives described in this RFIQ and the overall approach to the partnership, including the relationship and objectives to be achieved by the Beverage Distributor. Outline the proposal foundation. Page 10 of 12 D. Proposal Details — Describe the details of the proposal, addressing at a minimum facility and event coverage, marketing efforts, City responsibilities, agreement details, revenue details and exclusivity definitions. Specifically address the following questions: a) What vending opportunities are you seeking? How many sites? How many machines per site? Have you identified specific locations? What non-traditional sites have worked well for your company? What products would be included at these sites? What are the top selling vending items you would include? Within your industry what kinds of product lines will be forthcoming in the years ahead? Do you have the means to dispense coupons? b) Please describe in detail your proposal including specific terms and payment structures. c) Describe the language you wish to have included in the proposed agreement regarding territory exclusivity. d) Describe the language you wish to have included in the proposed agreement regarding category exclusivity. e) How do you plan to support your investment in this program? Will you partner with other companies? f) What access to City logo and marks do you wish to have and how would you propose to use them? g) What signage locations and types of signs will you require to meet your marketing objectives and justify the value of your investment in a municipal marketing partnership program? Attach drawing and renderings. h) Are there additional points of sale and/or concession opportunities you are requesting to be included in the proposed agreement? If so, please describe where and what type? i) What is the extent of access you wish regarding on-site promoting opportunities9 Include the types of events, special exhibits, kiosks, or promotional programs you' would be implementing. What City facilities do you wish access to for this purpose? Describe the things you are requesting the City provide in order to conduct these activities. j) Why is it in the best interest of the City of Santa Clarita to choose you over anyone else for this category of corporate partner for the municipal marketing program? Page 11 of 12 E. Project Management & Monitoring — Describe the proposed management structure, organization of contracting group, and facilities available. Describe the procedures to be utilized during the term of the agreement to monitor effectiveness and results. F. City Resources — Describe the City services and staff resources needed to supplement contractor activities to achieve identified objective(s) and what access to City publications, direct mail, or other City operations you envision being included in the agreement. G. Assigned Personnel — Identify the principals having primary responsibility for implementing the proposal. Discuss their professional and academic backgrounds. Specifically address the following questions: a) What is the company name that will actually appear on the municipal marketing partnership agreement? b) Who will sign the agreement and what is their title and authority to sign? c) Please provide the name, address and phone number of the contact person to be named in the agreement. H. Subcontractors — If subcontractors are to be used, identify each of them in the proposal. Describe the work to be performed by them and the number of hours or the percentage of time they will devote to the project. Provide a list of their assigned staff, qualifications, relationship to project management, schedule, costs, and hourly rates. References — Include examples of other municipal partnerships your firm has entered into that is of a similar nature and a contact person for each. J. Conflict of Interest — Address possible conflicts of interest with other clients affected by actions performed by the firm on behalf of the City. Although the proposal will not be automatically disqualified by reason of work performed for other parties, the City Page 12 of 12 reserves the right to consider the nature and extent of such work in evaluating the proposal. 7. PROPOSAL EVALUATI An evaluation panel comprised of City representatives may evaluate all proposals to determine responsiveness to the RFIQ The panel may recommend a proposal to the City Council for final approval and negotiation of a contract. Proposals may be evaluated on the following criteria: a) Thoroughness of proposal and completeness of response; b) Total value of revenue package offered; c) Innovation and creativity demonstrated in approach to revenue package; d) Positive nature of impression projected by proposed marketing program; e) Performance on agreements of similar size with other government agencies. During the selection process, the evaluation panel may wish to interview proposals with the highest score.