STRATEGIC PRIORITY: Vibrant
AGENDA DATE: June 11, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Park & Recreation Department
EXECUTIVE: John D. Jenkins
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SUBJECT
Title
Authorize (1) a ten-year beverage services contract with Pepsico Sales Inc. to provide full-service vending, case sales, and fountain pouring rights at Park and Recreation Facilities; (2) establish appropriations in the amount of $235,009.50; (3) the receipt and deposit revenue generated from this contract in the Imp. Maint. Rep. Programs/Sponsorships, Fund 0461; (4) the disbursement of commission to The Superlative Group pursuant to Consultant Contract No. PKR-2021-000017177 authorized by Resolution No. 23-0120; and (5) the remaining revenue be transferred into the Park Endowment Fund, Fund 0461 -Imp. Maint. Rep. Programs/Sponsorships ($869,535.14) and Park Endowment Fund ($70,502.86); Estimated Revenue: $940,038.86
Body
BACKGROUND
On November 1, 2022, the Park and Recreation Board authorized a three-year consultancy service contract with The Superlative Group to conduct an asset inventory and valuation and to develop a program of mutually beneficial sponsorship opportunities that deliver revenue dollars and/or in-kind products or services to the Park & Recreation Department (PKR) in exchange for certain advertising, naming rights, marketing and/or promotional considerations granted by the PKR.
As a function of the consultancy services contract the Superlative Group was authorized to develop solicitation materials and proposal evaluation criteria, review and evaluate proposals, manage and execute negotiations of business terms, revenue from opportunities and contracts, and act as lead negotiator with all advertisers or sponsors.
Pursuant to their contract, The Superlative Group issued an Exclusive Pouring Rights and Corporate Sponsorship Opportunity on behalf of PKR. On June 3, 2024, PKR evaluated the proposals and made a recommendation to staff based on guaranteed revenue, marketing revenue, product mix and product pricing.
Per the terms of the contract Pepsico Sales Inc. will provide beverage vending machines, fountain equipment, and product at preferred pricing rates at all park and recreation facilities not operated under an existing management agreement such as the Dallas Zoo. This includes recreation centers, aquatic facilities, and Southern Skates, as well as the addition of golf and tennis facilities upon contract renewal.
This contract will generate an estimated amount of $940,038.00 over the 10-year term of which 25 percent will be paid to The Superlative Group per the terms of their contract, and a minimum of 10 percent will be set aside for the park endowment fund per the Marketing and Sponsorship Revenue Policy. The remaining 90 percent will be deposited in a multi-year fund to be used for development of new park programming and major maintenance and repairs. In addition, $20,0000.00 in marketing funds will be provided annually with any unspent funds paid to the department as revenue.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 15, 2025, the Park and Recreation Board will consider authorizing a 10-year beverage services contract with Pepsi to provide full-service vending, case sales, and fountain pouring rights at Park and Recreation Facilities.
FISCAL INFORMATION
Estimated Revenue: Park Endowment Fund $70,502.86 and Imp. Maint. Rep. Programs/Sponsorships $869,535.14
OWNER/EXECUTIVE
Pepsico Sales Inc.
Jodi Sievers,Senior Business Development Manager