Beverage Rights - Bill Burke (5/1/2010 - 4/30/2020)
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AGREEMENT FOR EXCLUSIVE BEVERAGE RIGHTS
Relating to
BILL BURKE PARK
This Agreement is entered into this 3ct:lday of May 2010, by and between the CITY OF
SALINA, KANSAS (the "City") and PEPSI-COLA BOTTLING COMPANY OF SALINA,
INC., a Kansas corporation ("Pepsi").
Recitals
A. The City owns and operates an athletic complex known as Bill Burke Park ("Bill
Burke Park") which includes an approximately 820 square foot concession building
("Concession Building") designed for the sale of concessions to the general public attending
athletic events at Bill Burke Park.
B. In order to better serve the needs of the general public attending athletic events at
Bill Burke Park, the City desires to grant certain exclusive rights to Pepsi in exchange for
compensation and services.
The parties agree and covenant, as follows:
1. Grant of Exclusive Right. The City grants Pepsi the exclusive right to advertise
and supply all beverage items, including but not limited to: carbonated soft drinks, energy
drinks, bottled water, ice tea drinks, sports drinks, juices, milk or dairy products, or any other
non-alcoholic beverage item, at all activities at all Bill Burke Park for a period often (10) years
beginning effective May 1,2010 and expiring April 30, 2020, subject to the terms and conditions
. of this Agreement.
2. EClUipment. Pepsi will provide all of the necessary equipment needed for single
serve sales of its products at Bill Burke Park at no cost to the City or to any concessionaire.
3. Advertising. Pepsi-cola Bottling Company of Salina, Inc. will supply all
scoreboard advertising panels and menu boards and have the right to install, change and maintain
advertising in the concession stand and other areas at Bill Burke Park with prior written approval
from the City of Salina.
4. Wholesale Pricing. As of commencement of this Agreement, Pepsi will supply
products at the following prices:
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Packaee
Soft Drink
Gatorade 20 oz. Bottles
Finnegans Bottled Water 20 oz.
SoBe Life Water 20 oz.
Ocean Spray Juice
5 gal BIB
3 gal BIB
Wholesale PricelUnit
$21.00 per case 24 pack @.87unit cost
$21.00 per case 24 pack @.87 unit cost
$12.00 per case 24 pack @.50 unit cost
$12.50 per case 12 pack @ 1.04 unit cost
$13.35 per case 12 @ $1.11 unit cost
$55.75 per box 3840 oz. finished product
$34.56 per box 2560 oz. finished product
The City and Pepsi each reserve the right to annually negotiate wholesale price adjustments to be
effective as of any May 1 anniversary date of this Agreement; provided, however, Pepsi's
wholesale prices to the City shall not exceed Pepsi's regularly published wholesale prices.
5. Packaging. Single serve 200z. PET non-returnable bottles will be the primary
package for all Bill Burke Park events.
6. Concession Trailers. Pepsi agrees to supply Concession Trailers for outside
concessions for all baseball, softball, or soccer tournaments at Bill Burke Park as requested by
the City.
7. Rebate. Pepsi agrees to pay to the City, either quarterly or annually, a $3.00
rebate on all 24 pack 20 oz. PET cases sold at all Salina Parks and Recreation Department
facilities starting May 4, 2010.
8. Compensation. Pepsi-Cola Bottling of Salina agrees to pay $1,500 (fifteen
hundred dollars) annually to the City for the term of this Agreement The first annual payment
will be due upon execution of this agreement and no later than May 1 of each year thereafter.
9. Default. In the event either party fails to perform any of the promises and
covenants under this Agreement, the non-defaulting party shall give written notice of the default
to the other party specifying the nature of the default. If such default remains uncured for ten
(10) days after delivery of the notice specifying the nature of the default, this Agreement shall
terminate at the sole option of the non-defaulting party. In the event of termination based upon
default of Pepsi, Pepsi shall immediately discontinue operations and shall be required to
immediately remove all of their equipment, inventory, and supplies from the Concession
Building. In the event of termination pursuant to this paragraph, no portion of the annual
compensation provided for in paragraph 8 will be refundable.
10. Termination. Subject to the default provisions above, this Agreement may be
terminated by either party for any or no reason by providing the other party written notice of
termination no later than November 1 to be effective the following February 10f any year. Upon
notification of termination of this Agreement, Pepsi agrees that they will remove all their
equipment from the Concession Building between the November 1 notice date and the February
1 termination date. In the event of termination pursuant to this paragraph, no portion of the
annual compensation provided for in paragraph 8 will be refundable.
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11. Assignment. The City's willingness to enter this Agreement and the public
interest served thereby is unique to Pepsi; therefore, this Agreement is non-assignable by Pepsi.
12. Written Notices. All written notices, as provided herein, shall be delivered by
certified mail, return receipt requested, mailed as follows:
City:
City of Salina
Office of the City Clerk
City-County Building
300 WAsh
Salina, KS 67401
Pepsi:
Pepsi-Cola Bottling Company, Inc.
604 N. Ninth St.
Salina, KS 67401
13. Non-discrimination. Pepsi agrees not to discriminate against any employee or
any applicant for employment because of race, color, religion, age, sex, disability, or national
origin or ancestry and likewise not to discriminate for those same reasons against any person in
the course providing products and services pursuant to this Agreement.
14. Kansas Law Applies. This Agreement and its validity, constructions and
performance shall be governed by the laws of Kansas. This Agreement shall be interpreted
. according to its fair meaning, and not in favor of or against any party.
15. Merger. These terms are intended by the parties as a complete, conclusive and
final expression of all the conditions of their Agreement. No other promises, statements,
warranties, agreements or understandings, oral or written, made before or at the signing thereof,
shall be binding unless in writing and signed by all parties and attached hereto. Any amendment
to this Agreement, including an oral modification supported by new consideration, must be
reduced to writing and signed by both parties before it will be effective.
16. Severability. The unenforceability, invalidity, or illegality of any provision of
this Agreement shall not render the other provisions unenforceable, invalid, or illegal.
17. Non-waiver. No waiver of default by either party of any of the terms, covenants,
and conditions of this Agreement to be performed, kept and observed by the other party shall be
construed as, or operate as, a waiver of any subsequent default of any of the terms, covenants or
conditions of this Agreement to be performed, kept and observed by the other party.
18. BindingEffect. This agreement shall be binding upon the parties and their
successors.
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IN WITNESS WHEREOF, the duly authorized officers of the parties have executed
this Agreement on the date first above written.
ATTEST:
By:
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Lieu Ann Elsey, City Clerk, C
By:
PEPSI-COLA BOTTLING COMPANY
OF SALINA, INC., a Kansas corporation
By: Yt ~L.
.~M.Jt\t., ~ame)
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