SUBJECT
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Authorizing the City Manager to amend contract FY24-100 for Beverage Services to Coca Cola Southwest Beverages LLC, Dallas, Tx. for the Detoxification Department. This amendment reflects a 41% contract increase, with annual cost of $125,419.00 including a 5% increase in product cost for subsequent year. The term of this contract shall remain for a period of two years. This amendment applies to the second year of the contract year commencing on October 1, 2025, and ending on October 31, 2026. This contract may be extended for one (1) additional two (2) year periods, upon mutual agreement of the parties. Funding for this contract is available in the Detoxification budget.
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VIVA LAREDO PLAN ALIGNMENT
Alignment Rating:
☐ Strong - Directly supports or fulfills a clearly stated and verbatim goal or policy from the Viva Laredo Comprehensive Plan.
☑ Moderate - Indirectly supports or contributes to the intent of a verbatim goal or policy.
☐ Weak/None - Lacks identifiable alignment or conflicts with existing verbatim goals or policies.
I assess this agenda item as Moderate alignment.
Supporting Goal(s)/Policy(ies):
While the item is not about physical development, transportation, or land use, it does implicate health, service delivery, and municipal operations. In that respect, the most relevant sections of Viva Laredo are those relating to health / wellness / public services as well as economic / fiscal sustainability / municipal capacity. However, the Viva Laredo plan does not emphasize detailed procurement or departmental contracts in its goals, so the alignment is indirect.
Because no explicit procurement or departmental contracting policy could be located in Viva Laredo, the linkage remains general.
They do not seem to have a policy like “the city will procure health-related goods in a cost-efficient manner” or “municipal departments should ensure continuity of health service contracts” verbatim.
Thus:
• The agenda item supports the vision of improving health (by sustaining the operational capacity of the Detoxification Department).
• The agenda item implicates issues of affordability / fiscal responsibility, which is consistent with the plan’s tone of balancing quality services with financial constraints.
• But the plan lacks a direct, explicit policy clause to which this contract amendment “checks the box.”
Given that, the strongest connection is indirect.
Because only the vision / broad statements align, but not specific operative policies, "Moderate" is appropriate.
Summary of Alignment:
This agenda item (authorizing a substantial increase in the beverage services contract for the Detoxification Department) partially supports the broader vision goals of health improvement and quality of life / affordability in the Viva Laredo Comprehensive Plan. It helps ensure that a critical health or treatment service (detox) can continue uninterrupted, which is a necessary condition for improved public health outcomes. On the fiscal side, careful contract management is essential to maintain affordability of municipal services.
However, the alignment is indirect, because the plan does not appear to contain a verbatim policy or goal about municipal procurement, departmental contracts, or internal service agreements. The connection is through the plan’s overarching health and quality-of-life aims, rather than discrete implementation policies.
The “Moderate” rating is justified because the agenda item does advance the city’s capacity to deliver health services, but does not clearly fulfill a specific plan directive. It also intersects with themes of public health, sustainability, and municipal capacity. A more compelling alignment would exist if the plan included policies about ensuring continuity of health services, cost controls in public contracts, or resource efficiency in departmental operations.
PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
The City of Laredo went out on formal Request for Proposal FY24-100 for Beverage Services for the Detoxification Department/Roots Recovery Center, sole bidder was Coca Cola Southwest Beverages LLC, Dallas, Tx. Proposal was evaluated by a selection committee. A recommendation was presented to award this contract to them.
The term of this contract shall be for a period of two years. This contract may be extended for one (1) additional two (2) year periods, upon mutual agreement of the parties, currently in the first year of the first two-year term.
The detoxification requires a variety of drinks for the patient consumption including but not limited to regular and diet. Carbonated drinks, mineral water to help with nausea, teas, electrolyte drinks, juice, protein shakes to supplement nutrition, and waters. The center is a 24 bed, 24/7 facility providing medically managed detoxification and crisis stabilization services to individuals experiencing substance use disorders. During their time as a vendor with the center they have expedited any orders when needed; in addition, during the water boil notice vendor ensured the center had the necessary waters to meet the center's need. Please note that the center submits a weekly order based on center's census, utilizing current and scheduled admissions and anticipated discharges. Necessary adjustments to orders are driven by mentioned census. The contract amount is based on full capacity. Breakdown of beverages can be found in the supplier response attachment.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends award to sole bidder as vendor has accommodated the needs of the center during FY 25 with no issues encountered. Vendor has been very accommodating to the day to day needs of the center.
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Fiscal Impact
Fiscal Year: FY26
Budgeted Y/N?: Y
Source of Funds: Detoxification Department
Account #: 274 7410 542 3620
Change Order: Exceeds 25% Y/N: Y
FINANCIAL IMPACT:
Beverage services will not exceed a total of cost $125,419.00 including a 5% increase in product cost for subsequent year to provide all necessary beverages for the detoxification department. Breakdown of beverages can be found in the supplier response attachment.