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HomeMy WebLinkAboutCS-29-88(MEETING: COUNCIL MEETING DATE: October 24, 1988 REPORT #: CS -29 -88 SUBJECT: TOWN OF NEWCASTLE FILE #: REPORT File # , 3/. Res. #1 By -Law # RECREATION FACILITIES SOFT DRINK SERVICES AGREEMENT RECOMMENDATIONS: It is respectfully recommended that Council approve the following : - 1. That Report No. CS -29 -88 be received; and 2. That the Mayor and Clerk be authorized to execute an appropriate agreement with T.C.C. Beverages Limited (Coca -Cola Bottling Systems of Canada) to provide soft drink services to all municipally operated facilities; and 3. That the cash donation be used towards the purchase of required capital items in the Bowmanville Recreation Complex. ../2 COUNCIL MEETING REPORT NO. CS -29 -88 PAGE 2. BACKGROUND & COMMENTS: Community Services Staff initiated discussions with the two major soft drink suppliers in our area, with the intent of receiving consideration for exclusive rights to supply soft drink services at our recreation facilities. Although this approach has not been attempted previously, firms representing Coca -Cola Canada and Pepsi -Cola have expressed interest and submitted proposals (Attachment #1 & #2 respectively) . Upon review of the proposals staff is recommending that the Town enter into an agreement with T.C.C. Beverages representing Coca -Cola as being the firm offering the best proposal. Both firms have offered dispensing machines, menu boards, clocks etc. However T.C.C. Beverages has also offered a double door cooler and portable pre -mix bar for use in the multi purpose facility. Staff would also note that T.C.C. Beverages has in addition to the above offered a $12,000.00 cash donation as opposed to $9,000.00 offered from Smith Beverages. If Council endorses the recommendations contained in this report it is our intent that the cash donation would be used to off set the purchase of circular tables and chairs required in the multi purpose facility reducing our anticipated 1989 capital budget requirements. Respectfully submitted, Recommended for presentation to the Committee w r 1, Jos P. Caruana, Director /Lawrence �,E.,/Kotseff Department of Community Services -Chief Administrative Officer JC:sa (/ * 1CC Beverages Ltd. irwaW The CO, LZI 6ord Bottling System of Canada. 119 Franklin Street P.O. Box 39 Uxbridge, Ontario LOC I KO Telephone (416) 852-3377 ATTACHMENT #1 TO REPORT NO. CS-29-88 October 4th, 1988 Mr. Joe Caruana, Director of Community Services, Town of Newcastle, 40 Temperance Street, Bowmanville, Ontario. LIC 3A6 Dear Joe: Re: New Bowmanville Recreation Complex Further to our telephone conversation of October 3rd, 1988, in regards to our initial Proposal for the New Bowmanville Recreation Complex as discussed, please find enclosed a new Proposal that precedes and replaces the first one that you received. We will agree to provide on a loan basis, the following dispensers coolers, and advertising. KITCHEN AREA (SNACK BAR AND BAR) 2 - Remote refrigeration syrup units 4 - Dispensing Towers - 5 Flavour with fast flow valves LOBBY 1 - Can vender for Coke 1 - Can vender for diet Coke OTHER I - Double door cooler (for beer) 1 - Portable premix bar (possibly two) ADVERTISING Menu signs, menu boards, hockey chalk -talk boards, etc. as needed. We will commit to a $12,000 cash donation in lieu of a Hockey Scoreboard to be used at your discretion. Cont'd .... 2 ' Trade Marks of Coca-Cola Ltd. - 2 - In return for all of the above items, we would expect to be the exclusive suppliers of soft drinks for the Complex. There would be an agreement for a five year con-tract. Present Product Pricing - Syrup Our postmix syrups are in a 4.4 gallon bag as opposed to a 4.0 gallon tank. COKE & SCHWEPPES - $47.96 PER BAG (NO DEPOSIT) FLAVOURS (SPRITE & ORANGE) - $45.54 PER BAG (NO DEPOSIT) DIET SYRUPS - $55.22 PER BAG (NO DEPOSIT) CO2 (20 LB. TANK) Cans COCA-COLA & FLAVOURS F*340M Premix - 4 gallon tank ALL PRODUCTS notice. - $17.60 PLUS $50.00 DEPOSIT - $7.92 PER CASE - $8.14 PER CASE - $8.20 PER CASE - *16.50 PLUS $10.00 DEPOSIT Above prices are subject to change with 30 day I trust the above meets with your approval and wish to thank you and look Toward to a positive response to my proposal. Sincerely, T.C.C. BEVERAGES LTD. AC/fr Art Colucci, Bales Manager, Cold Drink. P.S. We will be happy to donate Coca-Cola product for the Grand Opening of the "New" Complex scheduled in November. * 1C.0 Beverages Ltd. woam* The &KYKo7v' Bottling System of Canada. 119 Franklin Street P.O. Box 39 Uxbridge, Ontario LOC 1 KO Telephone (416) 852-3377 October 4th, 1.988 Mr. Joe Caruana, Director of Community Services, Town of Newcastle, 40 Temperance Street, Bowmanville, Ontario. LIC 3AG Dear Joe: OCT 7 1988 TOWN Ot i-AhvvCASTLE Community Services Dept. Re: New Bowmanville Recreation e _2�mx Further to our -telephone conversation of October 3rd, 1988, in regards to our initial Proposal for the New Dowmanville Recreation Complex as discussed, please find enclosed a new Proposal that precedes and replaces the first one that you received. We will agree to provide on a loan basis, the following dispensers coolers, and advertising. KITCHEN AREA ( BAR _L SNACK BAR j_� 2 - Remote refrigeration syrup units 4 - Dispensing Towers - 5 Flavour with fast flow valves LOBBY 1 - Can vender for Coke 1 Can vender for diet Coke OTHER 1 Double door cooler (for beer) 1 Portable premix bar (possibly two) ADVERTISING Menu signs, menu boards, hockey chalk talk boards, etc. as needed. we will commit to a $10,000 cash donation in lieu of a Hockey Scoreboard to be used at your discretion. For this we would expect to be able to erect a 41 x 41 Coca-Cola ad panel in the arena. Cont'd .... 2 * Trade Marks of Coca-Cola Ltd. - 2 - In return for all of the above items, we would expect to be the exclusive suppliers of soft drinks for the Complex. There would be an agreement for a five year contract. Present Product Pricing - SyruD Our postmix syrups are in a 4.4 gallon bag as opposed to a 4.0 gallon tank. COKE & SCHWEPPES - $47.96 PER BAG (NO DEPOSIT) FLAVOURS (SPRITE & ORANGE) - $45.54 PER BAG (NO DEPOSIT) DIET SYRUPS - $55.22 PER BAG (NO DEPOSIT) CO2 (20 LB. TANK) Cans. COCA-COLA & FLAVOURS DIETS A & W ROOT BEER Premix - 4 gallon tank - $17.60 PLUS $50.00 DEPOSIT - $7.92 PER CASE - $8.14 PER CASE - $8.20 PER CASE ALL PRODUCTS - $16.50 PLUS $10.00 DEPOSIT Above prices are subject to change with 30 day notice. I trust the above meets with your approval and wish to thank you and look Toward to a positive response to my proposal. AC /fr Sincerely, T.C.C. BEVERAGES LTD. Art Colucci, Sales Manager, Cold Drink. P.S. We will be happy to donate Coca-Cola product for the Grand Opening of the "New" Complex scheduled in November. Town of Newcastle Attention: Joe Dear Joe:- ATTACHMENT #2 OF REPORT NO. CS 29 -88 (416) 576.6440 CIGAS ROAD, R.R.2 BOWMANVILLE, ONT. L1C 3K3 ACCOUNTING OFFICE BOX 604 BELLEVILLE, ONT. K8N 5B3 (613) 966 -3482 October 20, 1988 This letter is a change in our previous proposal, dated October 3, 1988. Smith Beverages is pleased to be offering the following: - $9000.00 to be paid up front to the Town of Newcastle, to be used for a specific purchase, to upgrade the new Recreation Complex at Hwy. #2 and Martin Road. - All equipment will be supplied on an on loan basis and includes all necessary signage (ie illuminated menu boards, clocks etc.) see equipment list. - We will also supply a generic 2 door cooler to be used for any of your cooling needs. If the cooler is used for a non -soft drink product, the equipment will be rented at $25.00 /month for the duration of the contract. We require the following: - A five year contract, awarding the exclusive pouring and signage rights to all your facilities. - The prices quoted are for one year and there will be a price change annually, not to exceed a ceiling of 4.5% annually. - All other sponsorships and signage opportunities will gladly be reviewed seperately and will not effect the contract. Joe, the other details are in the previous letter. As you know we are anxious for the opportunity to start a long term partnership. We have the expertise and knowledge that can be used to help promote and fill your facility. Please call me regarding any further details or questions. DD/ jw encl. Sincerely, SMITH BEVERAGES (1978) LTD. Derek Devlin 2 - CUPS LIDS 9 oz. $71.00/2500 $33.85/2500 12 oz. $72.10/2000 $31.15/2000 16 oz. $56.75/1000 $20.20/1000 Our product line consists of three national brands, Pepsi, 7 -Up, and Crush. With these three major players in the soft drink industry, coupled with our enthusiasm to become your supplier, we feel the Town of Newcastle will find this to be a favourable alliance to place itself in. We eagerly await your decision and if there are any further inquiries, please do not hesitate to call. Yours tru, y, SMITH BEV'E�RAGES (1978) LTD. Craig Finlayson CF /jw Sales Supervisor E 0 U I P M E N T L I S T 2 Postmix systems complete with 4 dispensing heads (6 flavour) for the new facility. 1 Postmix system for Darlington Arena Vendors for all facilities on an as needed basis. Illuminated and non - illuminated menu boards and clocks for all facilities. An illuminated outdoor clock for the ice surface area for each arena (30" X 38" X 811) 2 Door Visi Cooler (as detailed in letter) SMITH BEVERAGES (1978) LIMITEB I (416) Y9�E-Q*I40 "7 CIGAS ROAD, R.R.2 BOWMANVILLE, ONT. L1C 3K3 ACCOUNTING OFFICE BOX 604 BELLEVILLE, ONT. K8N 583 (613) 966 -3482 October 3, 1988 Town of Newcastle Attention: Jim Cameron Dear Jim: - This letter is a proposal in the attempt to secure the exclusive soft drink business for the new and impressive Recreation Complex under construction at Hwy# 2 & Martin Road in Bowmanville. Smith Beverages is a local operation and would show great pride in the acceptance of the following proposal, assuring the Town of Newcastle of first rate customer service, both in product sales, deliveries and equipment installation and maintenance. As per our telephone conversation, we will view the site to establish the project's equipment needs. Equipment needed for. -- the building will be placed on loan from Smith Beverages. We will provide up to three can vendors and three postmix systems. Installation and service work will be completed at no charge to the Town of Newcastle. In order to complete the food service areas, we would also make available two Oft illuminated menu boards, two 15 inch non - illuminated menu boards, two illuminated in door clocks and two illuminated clocks for ice surface area 30" X 38" X 8" . At this point we present our product pricing along with cups and lids pricing. This pricing is guaranteed through 1989. POSTMIX (4 gallons) $45.00 + $20.00 deposit DIET POSTMIX $50.00 + $20.00 deposit CO' (201b.1 $15.00 + $30.00 deposit CANS (cs. of 24) $7.90 /.... 2