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Home My WebLink AboutAGENDA REPORT 1999 0519 CC REG ITEM 11FTO: FROM: DATE: SUBJECT: BACKGROUND City of Moorpark AGENDA REPORT The Honorable City Council John Brand, Senior Management Analyst ITEM 11. F. C# VV (IT- N10( ?RP RK, CALIFORNIA ncij Meeting of ACT` 01 BY:, C� - -- May 11, 1999 (CC meeting of May 19, 1999) Consider a proposal to install and maintain beverage vending machines at the Moorpark Metrolink Station. Coca -Cola submitted an unsolicited proposal to install beverage vending machines at the Metrolink Station. The Agreement would be with the City, and the City would receive a 25% commission on all sales. This exclusive Agreement for vending at the station would not preclude (for example) a coffee cart or other non - vending service at the station. Coca - Cola's preliminary idea is to construct a vending kiosk in the south parking lot near the platform. One issue to resolve might be pertaining to the placement and servicing of litter and recycling receptacles. The City's current vending machine contract is with a firm called Take Five. They have machines in place in the Community Center and at Arroyo Vista Recreation Center. The Agreement with Take -Five gives them a first option on the placement of any new vending machines at City facilities. The Agreement with Take Five expires in June 1999. The City could ask this firm to submit a proposal to consider along with the one from Coca -Cola. At this time it is not clear how much demand there is for this type of amenity at the Metrolink Station. On average, there are 230 daily boardings for Metrolink at the Moorpark station. These boardings typically take place in the early morning hours. Council has had concerns about placing vending machines in parks in the past. As an unattended site, the Metrolink station may or may not present the same concerns that would be anticipated at park vending machines. Staff would like time to explore further the pros and cons of 000468 Coke Metrolink Vending Proposal CC Meeting of May 19, 1999 Page 2 operating vending machines at this site. As other Metrolink stations install machines, there may be the opportunity to learn about any difficulties from those station cities. Therefore, staff recommends that Council decline the offer from Coca -Cola. This is consistent with the City Council's policy regarding vending machines in parks. In the future, the demand may be established well enough to merit reconsideration of a vending machine proposal. RECOMMENDATION Staff recommends that the Council decline the proposal. Coke Metrolink Vending Proposal 0 0 0 4 6 Mary Lindley,City of Moorpark (213) 452 -0449 Francisco Oaxaca,Metrolink (213) 452 -0255 & 4/6199 5:4B PM jJ 2/2 IM April Metrolink Partners newsletter 4P-METROLINK. April 5, 1999 METR13LINK PROVIDES STATION OEVERAGE VENDING MACHINE PROPOSAL GATHERS STEAM 56 DAILY TRAINS During recent Station City Working Group meet- ings, Metrolink staff presented a proposal from the BETWEEN Coca -Cola Company for installing beverage vending machines at Metrolink stations. In exchange for LOS ANGELES installation of the machines, Coca -Cola would pay a 25% commission on sales from each station's AND machines to the city owning the station. Coca -Cola would pay all costs of installing BURBANK AIRPORT the machines, including any required city permits. They also would be responsible for machine mainte- nance, repairs or replacement, and stocking of bever- age products. The company would install a new generation of nearly impregnable machines, capable of communicating with a central office using cellular phone technology and informing maintenance per- sonnel of attempted break -ins, low beverage invento- ry or insufficient change. The machines would sell 20 oz. plastic bottles for $l. Available carbonated products include Coke, Diet Coke, Cherry Coke, Barqs Root Beer and Sprite. Non- carbonated prod- ucts include Nestea, POWERade, Fruitopia and Naya Spring Water. Coca - Cola's interest in placing vending machines at transit stations began with a program started by a local Coke office in San Diego. In coop- eration with the San Diego Trolley, machines were placed in stations fast year. After just three months, Coke presented the San Diego Trolley with a com- mission check for more than $ 10,000. As part of their transit program, Coca -Cola also is interested in working with Metrolink on other METRO[.1NK promotional programs. A Metrolink partnership with 700 SOUTH FLOWER ST. Coca -Cola will help heighten the visibility of com- SUITE 2600 muter train service and highlight stations in each Los ANGELES, CA 90017 community. For more information on the vending S011-371-LINK machine program, please contact Paul Sitkoff, wwW.M ETRO LINKT RAIN 9 -COM Metrolink Marketing, at (2 13) 452 -0216. VIFS VISIT METROUNK Metrolink officials welcomed State Senator Betty Kamette, who represents part of the South Bay area in Los Angeles County, as she addressed the Metrolink Board of Directors on March 12. Sen. Kamette is chairwoman of the Senate Transportation Committee, which approves funding for transporta- tion- related projects in the state. After speaking to the Metrolink board, Sen. Kamette toured the Metrolink Central Control Facility (CCF). The CCF is the nerve center of the Metrolink system, dispatch- ing more than 250 trains daily throughout Southern California. On April 9, Jose Medina, newly appointed Director of Caltrans, will visit the CCF and the Metrolink Central Maintenance Facility before addressing the Metrolink board. Medina most recently served as a San Francisco County Supervisor and as a board member of the San Francisco County Transportation Authority. NEB METROLINK SCHEDULE CHANGE PLANNED [OR MAY 11 Metrolink's next schedule change will take place on May IT Some trains on each line will be affect- ed, with time changes of nine to 35 minutes. San Bernardino Line and Orange County Line schedules will see the most changes,with nine and seven trains affected respectively. Two new trains will be added to Metrolink service between Los Angeles and Burbank airport. Preliminary schedules are available and already have been mailed to local transit opera- tors serving Metrolink stations. Flyers with new schedule information will be distributed to passengers the week before times change. New schedules also will be posted on the Metrolink Web site at www.metrotinktrains.corn. 000470 V APR 06 '99 1e:11 213 452 0255 PAGE.02 C5 (213) 452 -0449 3/30/99 6:43 PM 0 1/3 Francisco Oaxaca,Metrolink `g (213) 452 -0255 Coca -Cola /Station City Partnerships fit" 11 400 METROLINK Fax Transmittal Cover Page To: Susan Meyer, - City of Moorpark From: Francisco Oaxaca, Metrolink Fax Phone Number: (213) 452 -0449 Date: Tue, Mar 30, 1999 - 6:43 PM Transmitting (3) pages, including cover sheet. If there is difficulty with this transmission, please call: (213) 452 -0255 Note: Please contact Paul Sitkoff at (213) 452 -0216 with any questions. 0004'71 MAR 30 199 19:03 213 452 0255 PAGE.01 Q Ia (213) 452 -0449 (M 3/30/99 6:43 PM ® 2/3 D Francisco Oaxaca,Metrolink c' (213) 452 -0255 i@ Coca -Cola /Station City Partnerships Southern California Regional Rail Authority 1 1METROLINK. 700 South Flower Street, 26th Floor 00 Los Angeles, CA 90017 -4101 MEMORANDUM March 30, 1999 TO: STATION CITY WORKING GROUP REPRESENTATIVES FROM: PAUL SITKOFF SUBJ: COCA -COLA -STATION CITY PARTNERSHIPS Now that Metrolink's Station Cities Working Groups have been briefed on the proposed Coke Partnership, Metrolink would like to share some of the answers Coke has provided to the various questions and concerns raised by our Station City Reps: What sort of contract will each station city have to sign? How long will it be for? The attractiveness of the Metrolink system for Coke is having a presence in each of the 5 repre- sented counties. Ideally, Coke prefers a boilerplate contract which could be used for each city with little or no modification. Generally, Coke signs these contracts for 3 -5 years. It has been suggest- ed to Coke that an 18 month trial period might be in order. Coke is amenable, but will have to lower the commission structure for the following reasons: 1. Coke's Transit Program is mandated to show profit. This means that the cost of installing the machines must be paid for out of machine sales. Should a contract be terminated after 18 month, Coke Transit has to be able to show positive revenue. The only way to do this is to decrease the commission of the hosting city. 2. Coke loses its system wide reach if individual cities decide to pull out piecemeal. The generous commission Coke has committed to is for a long partnership opportunity. 3. Coke's marketing support of Metrolink's promotional programs is contingent on the long term viability of the Station Partnership. If we sign a long term agreement, what happens if Coke does not live up to the agreed expectations? All contracts will have performance clauses in them. Should Coke not perform as contracted (Maintenance, stocking, commission payments) cities can give a 30 day notice to meet contracted performance. Should nonperformance still be an issue after 30 days, the city would have the legal right to terminate the contract. What if there are already vending machines at the station? This can be handled in three ways: 1. If the current vending machine is not under an exclusive agreement, Coke will place machines concurrent with the existing machine. 0004'7; MAR 30 '99 19:03 213 452 0255 PAGE.02 D 1r1 (213) 452 -0449 Qb 3/30/99 6:43 PM ® 3/3 3 Francisco Oaxaca,Metrolink `W (213) 452 -0255 i@ Coca -Cola /Station City Partnerships 2. Cities may ask Coke to buy out the existing Contract. 3. Cities may ask Coke to wait until after the existing contract has expired. What if there is an existing Station restaurant or Catering Truck? If a station has a tenant supplying Coke product, Coke has offered to discount the purchase of prod- uct to the vendor to offset potential lost revenue. Since fountain sales of Coke targets a different market than machine sales, there should be little competition between the two sales outlets at the same station. Catering trucks are a different matter. Since they do not buy product directly from Coke, nor are they locked into selling at a fixed location, Coke does not feel it necessary to offset product expense. Neither, though, do they prohibit a catering truck from selling beverages other than Coke products. To participate in the Coke Partnership, or for more information, please call Paul Sitkoff at (213) 452 -0216. Remember, the deadline is April 11. 0004'73 MAR 30 '99 19:04 213 452 0255 PAGE.03 0 0 Metrolink, Station Cities, NAII Coca -Cola The Refreshing Way To Commute 0 0 Metrolink, Station Cities, "t" Coca -Cola The Refreshing Way To Commute To Secure An Exclusive Carbonated &Nnn- Carbonated 0 0 0 -I Beverage Relationship With Metrolink Focused On Driving Immediate Consumption Incidence. And Profitability. 0 0 0 .i 3aNaie� V a , d Worl Quality Re 170 Countries More Than Doub d's Preemi ny Other So joyed 1 Billion oviding Than day 4 0 0 0 F% 1998 YTD if Coca -Cola Classic March 28 Pepsi ✓Diet Coke Diet Pepsi ./ Sprite 7UP ✓ Dr Pepper Mountain Dew ✓ S quirt if CF Diet Coke Beverage Digest 1997 ll� 0 0 c� Product Line Coca -Cola Classic, Coke, Caffeine free Coke,Diet Coke, Cherry Coke, Barqs Root Beer Sprite, Diet Sprite Fresca Minute Maid Orange Squirt / Surge Dr. Pepper NAYA Nestea y C69 .. Minute Maid Juices To Go . POWERaDE Fruitopia Naya Spring Water 0 0 0 Coca -Cola Bottling Company of Southern California Will Meet All Your Service Needs: ❑ Coca -Cola will assist in selecting the best Vendor location ❑ Will Provide Service Within a 48 Hour Period on all Vending Equipment at no charge ❑ Service calls will be provided Monday through Friday 0 o� N ❑ All vending machines will be supplied and filled exclusively by Coca -Cola as often as needed to assure their operating at full capacity. ❑ All vendors will come equipped with dollar bill valuators and Cellular Technology. ❑ Southern California Coca -Cola Bottling Company will provide Vending Equipment at no charge for agreed upon locations. Coca -Cola will absorb all costs relating to- installation. (Average cost to Coke per machine: $250.00) P. • i s: t a, 'i Zia 4 • _.r.r-woo t.- Ox.�.� C a r.,,,,,,•,� „��^11�ss�t "°>r T _ _sue' Q. „�. �f3^wl. � ti +, `" � J,. T 'i Zia 4 • _.r.r-woo t.- Ox.�.� 0 0 0 as c� 20 oz. Bottles Vend price $1.00 Commission 25% Net Revenue Paid to You $5.38 Calculations Vend Price $ 1.00 x 24 ( per case) = $24.00 Gross Revenue $24.00 - Tax ($ 1.86) and CRV(.60) = $ 21.54 For more information Please call Paul Sitkoff Metrolink Marketing (213)452 -0216 0 0 0 Of) v Timeline: Feb 19 -March 30, 1999: Present Proposals April 1 - April 11, 1999: City Buy -In April 30, 1999: Begin Installations 3