A city partnership with a local vending machine firm that could bring in up to $870,000 over five years was given tentative approval Wednesday by the City Council's Budget Committee.
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Rainbow Vending would supply vending machines at city buildings and sell advertising space on them, if the deal is approved by the full City Council. Rainbow Vending also would get toe call itself San Diego's official beverage vending partner and put its logo on the city's website.
Rainbow Vending was selected from six firms that bid on the contract, according to a report presented to the committee. It offered the highest potential commission revenues for beverage sales and advertising; the highest commission percentage; a plan to replace old vending machines with modern, energy efficient ones; and a diverse product line.
A deal with Pepsi is about to expire.
Natasha Collura, the city's director of strategic partnerships, said there were about 130 vending machines on city property. She wants as many as 400 over the life the contract.
Marketing partnerships are a priority for City Council members, who are trying figure out ways to generate revenue. Deals have recently been approved with Toyota to provide vehicles for lifeguards and with Sprint to provide cell phones.
Councilman Carl DeMaio said the city has had arrangements with car companies for supplying lifeguards with vehicles and urged Collura to try to find new sources of revenue.
"That's the plan," Collura said, adding that people in her office were looking for opportunities.
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