Feb 18, 2026

Council approves beverage contract, discusses development agreement

Posted Feb 18, 2026 1:00 PM
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MARC JACOBS
Hutch Post

 The Hutchinson City Council approved a new beverage sales and sponsorship agreement with PepsiCo Beverage Sales LLC that also includes Hutchinson Community College and USD 308, with city staff saying the joint contract will simplify concessions across shared venues such as Gowans Stadium and the sports arena.

Parks and Facilities Director Justin Combs said the agreement runs through June 2030 and includes minimum purchase thresholds, $1,500 in initial support funds for the city and $11,300 annually in support funds, plus 75 free cases of product. He said Pepsi provides and services equipment at no cost, with 104 total pieces of equipment citywide — including about 40 in city-owned facilities — such as coolers and vending machines. The contract caps per-unit price increases at no more than 5% annually, Combs said, and includes vending service language used by the college and school district, while the city self-services its machines.

Combs told council the city’s previous Pepsi agreement provided about $3,500 a year in benefits, making the new package “significantly more” valuable. Council members raised administrative cleanup issues, including correcting signatories listed on earlier versions of the document, before voting unanimously to approve the agreement and authorize the mayor to sign.

In a separate discussion, City Attorney Paul Brown told council an existing development agreement with Superior Holding — tied to the city’s job-creation incentive Policy 30 — already covers incentives through 2030 and requires a minimum of 10 new jobs paying at least $21 an hour with health insurance. Brown said the agreement contains no maximum number of jobs eligible for incentives, and he recommended no council action unless the company seeks amendments.

Council members and economic development representatives discussed whether the city should revisit its incentive policies to push higher wages, potential cost-of-living adjustments, “but-for” language, and additional accountability measures. Chamber officials said state incentive programs use wage thresholds tied to NAICS industry codes and noted Reno County’s median hourly wage is about $20.13 based on state assessments. A resident criticized the city’s use of incentives and wage floors, while council members defended incentives as voluntary conditions for eligibility rather than mandates.

Also during the meeting, Utilities Director David Guinn reported water system repairs and leak detection efforts reduced treated-water loss by about 117 million gallons compared with the prior year — roughly a 4% improvement — producing an estimated $166,000 in treatment cost savings and about $591,000 in potential future revenue if the saved water is sold, for total impacts nearing three-quarters of a million dollars. Guinn credited aggressive work on main breaks, leaks, hydrants and valves, and said the city plans to conduct systemwide leak detection every three years.

Strategic Growth Director Dave Sotelo also invited the public to the launch of “Build Hutch,” a yearlong, grant-funded small-scale development program designed to help residents move projects from concept to completion. The kickoff is scheduled for Monday, Feb. 23 at 5:30 p.m. at Memorial Hall, with optional registration available through the city’s website.