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People Serving <br /> Peo[le <br /> <br />CITY OF RIVERSIDE <br /> <br />CITY COUNCIL MEMORANDUM <br /> <br />Riverside <br /> <br />· C' <br /> <br />HONORABLE MAYOR AND CITY COUNCIL <br /> <br />DATE: December 1, 1998 <br /> <br />ITEM NO: 16 <br /> <br />SUBJECT: DEPARTMENT POLICY FOR DONATION OR USE OF BOTTLED WATER <br /> <br />BACKGROUND: <br /> <br />As Riverside Public Utilities' (RPUs') profile in the community increases, RPU staff has determined the <br />need for a departmental policy to help guide decisions about the use of the Utility's donated or at-cost <br />bottled water products due to increased demand. Committee and Board of Public Utilities discussions <br />about the Department's "Sponsorship Policy" have raised concerns about the use of the bottled water, <br />chief among them: <br /> <br />Evaluation of Requests - It is important to outline the organizations to which RPU may lend <br />its support. <br />Value and Amount of Donations - The supplier cost to RPU (including bottling, printing and <br />affixing standard RPU labels) is about 31 cents per bottle. <br />Co-branded or Customized Labels - Only the largest events, and those in alignment with <br />RPU marketing and business goals, would receive consideration of co-branded or customized <br />labels. Consideration would be given to requiring customers to fund the cost of custom labels <br />(about $400) that meet RPU approval for smaller event opportunities. <br />Retail Sales of Bottled Water - RPU staff has considered that the smaller quantities we <br />bottle would likely preclude our ability to compete at the wholesale market. Rather, we would <br />recommend considering subsidizing "boutique" sales where costs and target audience benefit <br />would align with our business or community outreach goals (e.g., selling below cost to the City <br />Hall cafeteria vendor, for resale by the vendor). <br /> <br />These concerns have resulted in the creation of a Bottled Water Policy to delineate the response to the <br />above issues. A copy has been attached for review. <br /> <br />FISCAL IMPACT: <br /> <br />The projected cost to the Utility for donations over a year's time, based on past requests, is <br />approximately $7,000-$10, 000. <br /> <br />ALTERNATIVES: <br /> <br />To not donate or supply water at cost to community. <br /> <br />16-1 <br /> <br /> <br />