HomeMy WebLinkAboutRES 99-192 RESOLUTION NO. 2.7-1
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the Interim City Manager be, and he is hereby authorized to execute an agreement
with Beaumont Coca-Cola Bottling Company for the purchase of three (3) scoreboards for
the new ballfields that are currently under construction. The contract is substantially in the
form attached hereto as Exhibit "A."
PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of
1999.
- Mayor -
AC0_W6 ll&z7 u;ie6 BOTTLER
a E A U M O N T T E X A S S A E S C E N T E R
P.0 Drawe•3547
BeaJmo'1:.TX 77704-3547
AGREEMENT 439-299-5-,8,-,
800.635-2653
4119.898-1325 Fax
AGREEMENT between Coca-Cola Enterprises Inc. d\b\a Beaumont Coca-Cola Bottling
Company, a Delaware corporation, (hereinafter referred to as "Bottler") and The City of Beaumont, Parks
and Recreation Department with a principal place of business located at, 1150 Langham Road,
Beaumont, Texas (hereinafter referred to as"Dealer').
WHEREAS, Dealer owns and operates certain athletic and other facilities located at the
Beaumont Athletic Complex, which includes but is not limited to the entire premises, grounds, parking
lots, vending locations, and all athletic facilities including players' benches and locker rooms and all
buildings which are a part of the Complex, ("Facility") and has the authority to offer certain exclusive
product and advertising availability rights in such Facility over a ten (10) year term ('Term"); and
WHEREAS, Bottler desires to exclusively advertise certain of its Beverage products (as herein
defined) and that its Beverages be made available for sale exclusively in such Facility; and
NOW, THEREFORE, in consideration of the ads and promises contained herein, the parties
hereby agree as follows:
A. Responsibilities of Bottler. Bottler hereby promises that it shall:
1. Bottler hereby promises in year one (1) within thirty (30) days of executing final contract,
that it shall purchase three (3) Model 4408 Softball Scoreboards for the Facility, at a cost
not to exceed Eight Thousand Four Hundred Dollars ($8,400.00) including the freight
charge.
2. Bottler additionally promises that in years two (2) through ten (10) it shall purchase one
(1) Model #4408 or equivalent model Softball Scoreboards per year of contract not to
exceed Three Thousand Five Hundred Dollars ($3,500.00) including the freight charge
per year. Dealer may upgrade model of Scoreboard at Dealer expense, but may not
grant advertising rights on Scoreboards to any manufacturer of distributor of beverages
other than Bottler during the Term of this agreement.
3. Bottler will provide at no charge to Dealer one (1) POWERaDE Sports Kit for each
POWERaDE twenty- (20) ounce vendor placed on location before December 31, 1999.
B. Responsibilities of Dealer. Dealer hereby promises that it shall:
1. During the Term, Dealer hereby grants to Bottler the exclusive right to advertise and
make available for sale beverages, including Coca-Cola®, Coca-Cola®classic, diet Coke®, SpriteO, diet
Sprite(&, PowerAde®, Minute Maid® soft drink and juice products, Nestea, Naya water and such other
products marketed by The Coca-Cola Company (Such beverages are called "Products") as may be
agreed upon at all locations in the Facility where beverages are sold, dispensed or served. All Products
shall be purchased from Bottler at prices which are competitive with prices offered to similar customers
purchasing similar volumes of products in the area including any discounts and rebates as long as the
total purchase for sale of these beverages is less than Twenty Five Thousand ($25,000) in a fiscal year.
City of Beaumont
Beaumont CCBC
EXHIBIT "A„ � .f
2. Cause all menu boards, equipment and concessionaires dispensing beverage products
on the premises of the Facility to carry advertising panels supplied by Bottler which are clearly visible to
the purchasing public.
3. Grant exclusive beverage advertising rights on the Scoreboards in sections, A.1 and A.2
("Scoreboards') and in the Facility to Bottler and not grant advertising rights on the premises of the
Facility(or promotional rights with respect to the Facility)to any manufacturer or distributor of beverages
other than Bottler during the Term of this Agreement.
4. Cause all cups and/or coolers featuring the trademarks of The Coca-Cola Company to
be utilized at all locations in the Facility where Products are dispensed and that said trademarked cups
and coolers will be used in the Facility and that no other trademarked cups or coolers will be permitted.
5. Operate and maintain the Scoreboards in good condition and repair during the Term of
this Agreement at Dealer's expense and allow access by Bottler personnel to change the advertising
message on the Scoreboards, such changes to be in Bottler's sole discretion and at Bottler's expense.
6. Pay all costs of operating the Scoreboards, including, but not limited to, all utility charges
and lamp replacement.
7. Use it's best efforts to cause special event concessionaires at Facility to comply with this
Exclusive agreement not to sell any beverages sold by a manufacturer or distributor of beverages other
than Bottler during the Term of this agreement.
Should Dealer assign concession rights full time to a concessionaire during the Term of
the agreement,then concessionaire will be required to follow the agreement not to sell any Beverages
sold by a manufacturer or distributor of beverages other than Bottler.
8. `Beverage"or"Beverages' means n all hot and cold carbonated and noncarbonated,
nonalcoholic beverages, but not limited to, carbonated soft drinks, frozen carbonated and noncarbonated
beverages, packaged waters, natural or artificially flavored fruit juices, fruit juices-containing drinks and
fruit flavored drinks(sweetened or un sweetened),tea products, hypertonic, isotonic, and hypotonic
drinks, from syrups, powders, crystals, concentrates or otherwise from which soft drinks and beverages
can be prepared. `Beverage"or'Beverages'shall not include fresh brewed unbranded coffee and tea
products, milk, hot chocolate,water drawn from the public water supply or unbranded juice squeezed
fresh on site.
D. Term and Termination.
1. 'Either party may terminate this agreement for any breach of this agreement upon the
following conditions:
a) Upon becoming aware of any breach of this agreement, prior to exercising the
right of termination,the non-offending party shall give to the other party notice in
writing specifically stating the nature of the breach and the actions necessary to
cure the breach. Any notice required to be given under this Agreement shall be
in writing and shall be duly served when it shall be hand delivered to the
addressees set out below, or shall have been deposited, duly registered or
certified, return receipt requested, in a post office of official depository under the
care and custody of the United States Postal Service addressed to the other
party at the following addresses:
City of Beaumont
Beaumont CCBC
To: Bottler To: Houston Coca-Cola Bottling Company
Attn: Dave French
Vice President and General Manager South Texas Division
2800 Bissonnet
Houston, Texas 77005
To: Dealer
To: City of Beaumont, Parks and Recreation Department
Attn: Lou Cappi
P.O. Box 3827
Beaumont, Texas 77704-3827
Any party may designate a different address by giving the other party ten (10)days prior
written notice in the manner provided above.
a) If the alleged breach is not cured by the offending party within thirty(30)
days of receipt of the notice of termination described herein,the non-offending
party may at its option,take any and all actions to cure the default.
b) If the non-offending party does not take action to cure the default,such party
may declare this agreement to be terminated. In such event,the Dealer shall
pay the Bottler the unamortized portion of scoreboard fees paid for that year as
set forth below. See Attachment 1 Amortization Schedule of Scoreboard Fees
for calculation of the amounts below.
Year 1 - $8,400
Year 2 - $10,200
Year 3 - $11,340
Year 4 - $11,760
Year 5 - $11,480
Year 6- $10,500
Year 7- $10,500
Year 8 - $10,500
Year 9 - $10,325
Year 10- $9,683
c) If the Bottler breaches its obligations herein,then Dealer may exercise any
legal remedy so long as the dealer has not materially breached this agreement.
2. The Term of this exclusive Agreement shall commence on May 30,1999 and shall be for a period of
ten (10) years.
3. Notwithstanding the other provisions of this Agreement, if any federal, state or local law, rule,
regulation or order prohibits, restricts, or in any manner interferes with the use of the Scoreboards by
City of Beaumont
Beaumont CCBC
Dealer or with the sale or advertising of beverages and related beverages at any time during the
Term of this Agreement, if Dealer does not have the right to grant the rights herein or if for any
reason the use of the Facility declines or is closed, then Bottler may terminate this Agreement and
Dealer shall pay to Bottler the unamortized portion of the scoreboard fees as set forth in section C
above.
E. Miscellaneous.
This Agreement constitutes the entire understanding of the parties and no terms may be altered
or waived except by the mutual written consent of both parties. This Agreement may not be assigned
nor the Scoreboards sold or otherwise conveyed by Dealer without Bottler's written consent for the term
of this agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
authorized representatives as of the date first written above.
COCA-COLA ENTERPRISES, INC. CITY OF BEAUMONT, PARKS AND
D/B/A BEAUMONT COCA-COLA BOTTLING RECREATION DEPARTMENT
COMPANY: BEAUMONT ATHLETIC COMPLEX:
By: By:
Printed Name: _Stephen R. Murphy Printed Name:
Title: Division Cold Drink Manager Title:
Date: Date:
By:
Printed Name: Michael Lohr
Title: Sales Center Manager
Date:
Original Copy to Thom Bom Division Education Channel Manager
City of Beaumont
Beaumont CCBC
A
TEXAS CERTIFICATE OF EXEMPTION
The City of Beaumont, Parks and Recreation Department/Beaumont Athletic Complex
Purchaser's Name
1150 Langham Road
Street Address
Beaumont,Texas
City, State and Zip Code
I claim an exemption from payment of sales and use taxes for the purchase of taxable items described
below:
Scoreboards; Labor and parts to repair Scoreboards
I claim this exemption for the following reason:
We are an exempt organization and the Scoreboards will be installed and used in our own facility.
I understand that I will be liable for payment of sales tax which may become due for failure to comply with the
provisions of the Tax Code: Limited Sales, Excise and Use Tax Act, Municipal Sales and Use Tax Act, Sales
and Use Taxes for Special Purpose Taxing Authorities, County Sales and Use Tax Act, County Heafth
Services Sales and Use Tax and Texas Health and Safety Code: Special Provisions Relating to Hospitals
Districts, Emergency Services Districts and Emergency Services Districts in counties with a population of
125,000 or less. Liability for the tax will be determined by the price paid for the taxable items purchased or the
fair market rental value for the period of time used.
understand that it is a criminal offense to give an exemption certificate to the seller for taxable items which I
know, at the time of purchase,will be used in a manner other than that expressed in this certificate.
Seller. Coca-Cola Enterprises, Inc. D/B/A Beaumont Coca-Cola Bottling Company
Street Address: 11450 Eastex Freeway
City, State and Zip Code: Beaumont,Texas
Purchaser's Signature: Date:
Title:
This certificate does not require a number to be valid. Sales and Use Tax exemption numbers or tax exempt
numbers do not exist.
This certificate should be furnished to the supplier. Do not send the completed certificate to the Comptroller of
Public Accounts.
City of Beaumont
Beaumont CCBC
4. Attachment 1
Amortization Schedule of Scoreboard Fees
Year of Unamortized
termination Vender#1 Vender#2 Vender#3 Vender#4 Vender#5 Vender#6 Vender#7 Vender#8 Vender#9 Vender#10 Vender#11 Vender#12 portion
Year 1 $ $ $ $
2,800.00 2800.00 2,800.00 8,400.00
Year 2 $ $ $ $ $
2,240.001 2,240.00 2,240.00 3,500.00 1 1 1 10,220.00
Year 3 $ $ $ $ $ $
1,680.00 1,680.00 1,680.00 2,800.00, 3,500.00 11,340.00
Year 4 $ $ $ $ $ $ $
1,120.00 1,120.00 1,120.00 2,100.00 2,800.00 3,500.00 11,760.00
Year 5 $ $ $ $ $ $ $ $
560.00 560.00 560.00 1,400.00 2,100.00 2,800.00 3,500.00 11,480.00
Year 6 $ $ $ $ $ $
700.00 1,400.00 2,100.00 2-18-0-0--0-0- -31500.00 10,500.00
Year 7 $ $ $ $ $ $
700.00 1,400.00 2,100.00 2,800.00 3,500.00 10,500.00
Year 8 $ $ $ $ $ $
700.00 11400.00 2,100.001 2,800.00 3,500.00 10 500.00
Year 9 $ $ $ $ $ $
700.00 1,400.00 2,100.00 2,625.00 3,500.00 10,325.00
Year 10 $ $ $ $ $ $
700.00 1,400.00 1,750.001 2,333.331 3,500.001 9,683.33
City of Beaumont
Beaumont CCBC