PROPOSAL FOR GATORADE DRINK VENDING MACHINE AT

SOUTH PARK

Recommendation

It is recommended by the Parks, Recreation and Community Resources Commission and staff that Council:

1. Approve the request from the Roller Hockey Program Leader to add a Gatorade Vending Machine (with a 40% commission to the City) to South Park; and

1. Authorize the City Manager to sign the attached one (1) year contract.

Background

With the growing enrollments in Roller Hockey programs, the necessity for drink sales has increased. Absent a concession stand, youngsters in the programs and recreational users cannot purchase cold drinks at games or practice.

At their August 20, 1997 the Parks Commission approved the request to add a Gatorade Vending Machine to South Park.

Analysis

This issue is now before the Council due to the fact that there are currently no vending machines in our City parks. In reviewing this proposal, staff was concerned with: (a) park aesthetics, (b) the potential for vandalism, (c) use of City electricity, and (d) revenue/ costs to the City.

The Gatorade vending machine was selected over other alternatives because of the appropriateness of the product (sports drinks) to hockey play and other important considerations such as: (a) the vending machine is caged to prevent vandalism, (b) the City will receive a 40% commission on all sales (estimated at $2,600 annually based on projections of 12 sales per day), (c) the vending machine is fully stocked and maintained by Gatorade, (d) Gatorade will help support special events and fund-raisers at the rink and park, (e) City electrical bills to run the machine estimated at only $15 per month, and (f) Gatorade is the most popular brand of isotonic sports drink on the market.

The vending agreement lasts for a period of one year, allowing the City and Commission to evaluate its success both operationally and fiscally. In consideration of the 40% commission, exclusivity is required for Gatorade as the only isotonic/sports drink beverage sold on the premises for the one year period (see Attachment A).

The machine will be located on the north side of the park building (see Attachment B) in order to be convenient for electricity and to be located adjacent to the public telephone, restrooms, and league bulletin boards.

Fiscal Impact:40% Commission per drink revenue to the General Fund. Estimate based on 12

sales per day = $2,600 annually. Electricity costs estimated at $180 annually.

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