05-97 Ordinance AMENDEDRECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No._OS-97 (Amended) Passed
_ - -19-- -
AN ORDINANCE AUTHORIZING THE CITY
MANAGER TO ENTER INTO AN "EXCLUSIVE
PRIVII.EGE TO SELL" AGREEMENT FOR SOFT
DRINKS INCITY-OWNED FACILITIES.
WHEREAS, after formal advertisement requesting proposals for the "Exclusive Privilege to
Sell" soft drinks in City-owned facilities; and,
WHEREAS, Council has determined that the City should enter a three (3) year "Commission
Only" "Exclusive Privilege to Sell" agreement with 7UP Columbus;
NOW, THEREFORE BE IT ORDAINED by the Council of the City of Dublin, State of
Ohio, ~ of the elected members concurring:
Section 1. That the City Manager is hereby authorized to enter into a three (3) year
"Commission Only" "Exclusive Privilege to Sell" agreement with 7UP Columbus based upon
the commission structure reflected in the attached "Comparative Spreadsheet."
i n 2 That this Ordinance shall take effect and be in force on the earliest date permitted
by law.
Passed this ~_ day of , 1997.
i
-Presiding Officer
ATTEST:
Clerk of Council
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CITY OF DUBLIN
Mem o
Office of the City Manager
5200 Emerald Parkway
Dublin, Ohio 43017-1006
Phone: 614-761-6500
Fax: 614-889-0740
To: Members of Dublin City Council
From: Timothy C. Hansley, City Manager
Date: July 3, 1997
Re:
"Exclusive Privilege to Sell" Agreement _„_ ...._.
in City-owned Facilities (Ordinance No. OS-97)
By: David L. Harding, Director of Human Resources/Procurement ~-
As you may recall, when Council initially considered the above referenced subject, some Members
of Council expressed concern regarding the proposed term (10 years) of the proposed agreement.
Consequently, Council tabled Ordinance No. OS-97 until which time other options could be
explored. Staff has researched other options with 7UP Columbus and is now in a position to
propose several options to Council. Attached for your consideration is a comparative spreadsheet
outlining the options available to the City in entering an agreement with 7UP Columbus.
While exploring other options with 7UP Columbus, it became apparent to Staffthat a "Commission
Only' arrangement, as opposed to a hybrid (commission and up-front inducements), could be more
beneficial to the City. As illustrated in the attached spreadsheet, the "Commission Only" options
all offer a substantially higher commission structure--in some cases double or more--than the initial
10 year hybrid arrangement or the three or five year hybrid arrangements. Consequently, Staff is
now recommending that the City move in the direction of a "Commission Only" arrangement as
opposed to a hybrid arrangement. Staff realizes that this approach does not provide up-front
revenue to the City, but given the revenue analysis provided by 7UP Columbus (to a significant
degree based upon consumption at the Community Recreation Center), Staffbelieves the overall
revenue potential associated with the "Commission Only' scenarios could be greater than the overall
revenue potential associated with the hybrid scenarios.
Page 2
Based, in part, upon the concern expressed by Council initially regarding the term of any proposed
"exclusive privilege to sell" agreement and, in part, on the comparisons reflected in the attached
spreadsheet, Staff would recommend that Council authorize the City Manager to enter into an
agreement based upon the three year "Commission Only" option.
As discussed when Council initially considered this matter, the agreement between the City and 7UP
Columbus for the "exclusive privilege to sell" would not include special events nor the Avery Park
concessions.
To be consistent with Stars recommendation to enter into the three year "Commission Only"
agreement, Staffis proposing that Ordinance No. OS-97 as originally drafted, be amended. Attached
for your reference and consideration, therefore, is Ordinance No. OS-97 as initially proposed and
Ordinance No. OS-97 (Amended) with the amendments proposed by Staff. Should Council choose
an option other than that recommended by Staff, the proposed legislation would need to be
amended accordingly.
Representatives from 7Up Columbus will be in attendance at the July 7, 1997 Council Meeting and
will be available to answer questions or address concerns regarding the commitment of 7UP
Columbus to the City of Dublin regarding the proposed relationship.
TCH/DLH/kst
Attachments
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