PART OF THE PEPSI GENERATION CITY COUNCIL PREPARES TO VOTE ON 10-YEAR SODA MONOPOLY.

Byline: Heather MacDonald  Staff Writer

SANTA CLARITA - Pepsi - the choice of the next generation and, now, the city of Santa Clarita.

Under an exclusivity agreement expected to be ratified by the City Council on Tuesday, you won't be able to find a Coke or a Sprite at any city building or event for the next decade.

``It is a good deal for the city, and more importantly, the community,'' said administrative analyst Tina Haddad.

A committee of six staff members from various city departments has recommended that the City Council approve a 10-year deal with the Pepsi Bottling Group, worth more than $815,000 to the city of Santa Clarita.

The proposal from the Coca-Cola Bottling Co. for a three-year deal totaled just $95,000.

``There was really no comparison between the two deals,'' Haddad said. ``It was an easy decision.''

Pepsi will pay $72,000 a year for the right to be known as the ``Official soft-drink of the city of Santa Clarita.''

In addition, Pepsi will give Santa Clarita $5,000 to fund special events, such as the Concert in the Parks series and the Santa Clarita Marathon, Haddad said.

Pepsi will also donate 100 cases of diet and regular soda pop, root beer, juice, lemonade, ready-to-drink tea and coffee, energy drinks, bottled water and frozen beverages to Santa Clarita.

The city's financial analysis of the deal estimates that the partnership will add at least $777,000 to Santa Clarita's general fund, which the city uses to pay for most services, including police and fire protection.

The city could see its revenue grow if the number of cold sodas sold from vending machines on city property exceeds a benchmark set by Santa Clarita and Pepsi.

The city could get as much as a 40 percent commission on each case of soda sold beginning in the third year, and if the total amount earned from commissions exceeds the annual payment, the city can chose to receive the higher amount, Haddad said.

``That's the best part of the deal,'' Haddad said.

The agreement with Pepsi would add 24 vending machines to city facilities, including the Santa Clarita Sports Complex and the McBean Transfer Station, Haddad said. Cans of soda will cost 75 cents, while 20-ounce bottles will cost $1, she added.

The agreement also allows Pepsi to incorporate the city's seal and logo into its advertising, Haddad said.

In November of last year, the City Council unanimously rejected proposals from both Coke and Pepsi, saying they were not as lucrative as similar deals offered to other Southern California cities.

In that proposal, Pepsi offered a $126,000 contribution to the city and a 40 percent commission, estimated to be worth $66,000 over 10 years. Coke's offer was similar.

``The current proposal is a much better deal,'' Haddad said.

The sales of cities', schools' and school districts' so-called ``pouring rights'' has become increasingly popular over the last several years as a way of coping with budget cutbacks.

This year, the City Council was forced to cope with unfamiliar budget restraints imposed by the state's $23.6 million budget deficit, the recession, mounting legal bills and an increasing amount of debt.