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New Mexico State University

New Mexico State University

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Board of Regents approves vending contract, increases budget for Garcia Hall renovation

The New Mexico State University Board of Regents today approved an eight-year contract between the university and Pepsi Cola for exclusive rights to provide soft drinks and snacks in vending machines and at soda fountains on the main campus.

The board also approved a $2.79 million increase in the Garcia Residence Hall renovation budget to cover unforeseen problems related to structural corrosion and faulty water lines.

The vending contract award was based on the recommendation of a committee that evaluated proposals from Coca-Cola, which has had the vending contract for the past eight years, and Pepsi Cola. The Pepsi bid is expected to provide more revenue to the university over the term of the contract.

NMSU Vice President for Business Affairs James McDonough said the contract is projected to provide more than $400,000 per year to the university. About $145,000 per year will go to the athletics department, $10,000 per year will go to the Associated Students of NMSU for maintaining a computer cluster for students in Corbett Center Student Union, and the balance, a minimum of $250,000 per year, will go to auxiliary services.

The vote in favor of awarding the contract to Pepsi was 3 to 1, with Regents Adelmo Archuleta, Larry Sheffield and Avery Culbertson voting in favor and Regent James Manatt voting against. Regent John Van Sweden was absent from the special meeting.

The increase in the Garcia Hall renovation cost brings the project budget to $12.29 million. Most of the $2.79 million increase, which Vice President for Facilities Ben Woods called a worst-case figure, is for repairing structural damage caused by corrosion. About $435,000 is for replacing a significant portion of the domestic water lines in the building.

Woods said the unforeseen problems were discovered after the renovation work began. He said at least a portion of Garcia Hall, if not the whole building, is expected to be ready to open for the fall 2000 semester.