The Great Falls Public Schools board approved a new 15-year contract with Admiral Beverage during a late November meeting.
The district previously had five-year contracts with both Pepsi through Admiral Beverage and Coca-Cola through High Country that expired June 30.
The district had negotiated a proposed three-year contract with High County that was tabled over the summer and unanimously rejected during the board’s Aug. 25 meeting.
The district reopened the bidding for both companies for exclusive contracts for longer periods of time.
The district set required parameters that were sent to both companies on Sept. 11 that included:
- a minimum 10-year commitment
- upfront cash commitment
- flat minimum commission
- capital projects and student support participation
- advertising and sponsorship packages
- service agreement
- performance will be reviewed annually by the district
- beverages are required to meet or exceed all dietary regulations required by the Healthy Hungry Free School Kids Act of 2010
Both companies presented proposals on Sept. 19.
Under the exclusive contract with Admiral Beverage, the districts receives an initial lump sum payment of $220,000 as well as the following:
- $2 per case, or $90,000 over the life of the contract, for annual exclusivity/rebate
- three $1,500 annual scholarships or $67,500 over the contract term
- 20 percent vending commissions, or $367,500 over the contract term
- $3,000 annually for sideline kits, or $17,000 total
- $5,000 annually in printshop costs for $75,000 total
Those funds go into the district’s revenue enhancement fund, which is used typically toward items like turf replacement, lights on fields and in gyms, gym floor replacements, pads in gyms, scoreboards, fixing tracks, and more, Superintendent Heather Hoyer told the board, so those projects don’t have to be funded with other district funds.
During the Nov. 24 school board meeting, Luke Diekhans, GFPS’ business operations manager, said discussions regarding the beverage contract had been ongoing for about a year, starting under his predecessor who retired in July.
High Country-Coke’s proposal included two $500 scholarships annually for a total of $20,000 over the contract term.
In total, Admiral’s proposal included $55,801 in annual revenue for the district, compared to $27,942 from the Coke proposal, according to Diekhans.
Craig Duff, school board member, said that he thought a 15-year contract was too long and would have preferred a five-year contract with extensions, ultimately voting against the contract.
Diekhans said that the district had shorter contracts in the past and had split between the two beverage companies.
Hoyer said that in looking at it in the short term, they were looking specifically at the quality of service they’d received from the two distributors.
Admiral had an “outstanding record of service with us,” especially at the high schools, compared to times when High Country-Coke was difficult to get ahold of.
Kim Skornogoski, board member, asked if equipment replaced with the beverage money included advertising on it.
Diekhans said there are some advertising components and there is a clause included to exit the beverage contract if needed.
Amie Thompson, board member, said that hearing one company was easier to work with held a lot of weight for her decision.
