REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 25, 2024
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Agreement with PepsiCo Beverage Sales, LLC for Beverage Services
End
RECOMMENDATION(S)
Recommendation
Approve Agreement with PepsiCo Beverage Sales, LLC for beverage services and products, in the not-to-exceed amount of $1,400,000, for the contract period of July 1, 2024 through June 30, 2029.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The cost of $1,400,000 is funded by State Medi-Cal, Federal Medicare, private insurances, and other departmental revenue. PepsiCo Beverage Sales, LLC (PepsiCo) will also provide rebates of $2 per bottle/can case and $3 per fountain gallon sold, as well as support payments to the County that include a one-time signing bonus, annual partnership support, annual retention bonus, annual flex funds, and one-time capital investment. The support payments are financial incentives of about $180,000 total that will provide support to hospital operations and offset the cost of repair for equipment utilized by the ARMC Nutrition Services Department for beverage services. Funding sources may change in the future pending any legislative activity related to the repeal and/or replacement of the Affordable Care Act. Adequate appropriation and revenue have been included in the Arrowhead Regional Medical Center (ARMC) 2024-25 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The Agreement with PepsiCo will allow ARMC Nutrition Services Department to...
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