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CONSIDERATION OF ACCEPTANCE OF AN INCENTIVE PAYMENT IN THE AMOUNT OF $7,597 FROM THE PEPSI BEVERAGES COMPANY TO THE NORMAN MUNICIPAL AUTHORITY FOR THE EXCLUSIVE SALE OF PEPSI PRODUCTS AT THE WESTWOOD GOLF COURSE AND WESTWOOD FAMILY AQUATIC CENTER AND BUDGET APPROPRIATION.
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BACKGROUND: On February 26, 2019, the Norman Municipal Authority (NMA) entered into Contract Number K-1819-105 for the exclusive sale of Pepsi products at the Westwood Family Aquatic Center and the Westwood Golf Course. Pepsi Co.’s incentive package included a year one signing bonus of $10,000 and a developmental fund payment of $7,000 per year in years two, three, four, and five. Additional incentives include 200 cases of free water, rebates of $1.00 per gallon of fountain syrup purchased, and $2.00 per case of 20 oz. bottles purchased. The total incentive package from Pepsi Co. is $38,000 spread over five years.
DISCUSSION: This incentive payment is for year three of the contract, which includes a $7,000 developmental fund payment and $597 in rebates for the purchase of Pepsi products, which were sold at Westwood. The developmental and rebate incentive will be used for repairs and restaurant equipment upgrades to the concession area and kitchen.
RECOMMENDATION It is recommended that the NMA and City accept the incentive payment of $7,597 from the Pepsi Beverage Company to be deposited into Westwood Fund, Concession-Restaurant revenue account (Org 297 Object 345611). City staff further recommends that those funds be deposited to Minor Equipment account (Org 29770035 Object 43609) for various concession area improvements at the Westwood Golf Course Grill.