HomeMy WebLinkAboutCocaCola Bottling Co MLK Vending Agreement 03.01.09VENDING MACHINE LICENSE AGREEMENT
THIS LICENSE AGREEMENT entered into this 1St day of March 2009, between
the City of Pasco, Washington, Municipal Corporation, hereinafter referred to as "City"
and Coca -Cola Bottling Company Yakima and Tri- Cities; hereinafter referred to as
Licensee."
In consideration of mutual covenants contained herein, it is agreed as follows:
SECTION I
License to Install Vending Machine
Licensee, at its sole expense, shall supply and install vending machines for the
sale of food and beverages at the City's Martin Luther King Center in specific locations
therein to be designated by the City. Licensee agrees to supply, maintain and pay any
license fees and taxes and operate its machines in such manner as to ensure that they are
neat, operational and functioning at all times. Licensee, at Licensee's expense shall
furnish all necessary electrical connections. The City shall, at its expense, supply
necessary electrical current for the operation of the vending machine. The vending
machine shall consist of not less than the following:
2 -20 ounce C.S.D. vendor
1 -20 ounce N.C.B. vendor
1 -12 ounce C.S.D. vendor and
1 candy /snack vendor
Licensee shall not place any additional vending machines on the premises unless
authorized by the City.
SECTION II
Maintenance and Service of Vending Machine
Licensee will provide all necessary services for the vending machine on a full -
service basis, including keeping such machines fully maintained, operational and fully
stocked with sufficient inventory to meet the demands of the City's patrons. Licensee
shall respond to all service calls for maintenance and inventory within 24 hours of the
call unless other times for performance are determined by mutual agreement.
Maintenance and inventory stocking of candy and snack vending machines will
be provided by Coca -Cola full line vending during the term of this license.
SECTION III
Exclusive License
This license shall be exclusive to the Licensee and the City, during the term of
this Agreement shall not permit the installation by others of vending machines or
facilities of a similar nature to those of the Licensee.
SECTION IV
Consideration
As inducement and as consideration for the grant of this license, Licensee will
supply the City with one (1) ALS- 246LED04 — 6x8 wireless basketball scoreboard with
one (1) additional wireless controller which will be installed and maintained by the City,
500 yearly Hoop -D -Doo sponsorship and an electric premix unit and cups for up to four
4) special events per year.
As additional consideration, Licensee shall pay commission as follows:
Product Vend Price Commission
12 Ounce C.S.D. 65 25%
20 Ounce C.S.D. 1.25 25%
20 Ounce N.C.B. 1.25 25%
20 Ounce Jarritos 1.25 8%
Commissions provided above shall be paid on a calendar quarterly basis based
upon the total number of sales attributed to the vending machines. Licensee shall
provide, upon a 15 -day advance notice by the City, a sales report showing the total
number of sales for the period specified in the request. There will be no charge for the
use of the vending machines or any maintenance or inventory stocking service calls.
SECTION V
Term
The commencement date of this Agreement shall be March 1, 2009 and shall run
for term of ten (10) years unless terminated by either party upon giving ninety (90) days
advance written notice of its intent to terminate. If this Agreement is terminated by either
party within the first five (5) years of this Agreement, the City shall either, at its sole
discretion, surrender to Licensee the scoreboard and equipment or pay to the Licensee the
undepreciated value of the scoreboard as of the date of termination period.
Undepreciated value shall be calculated on a straight line depreciation basis at 20% per
year based on the actual documented cost of the scoreboard supplied by Licensee.
SECTION VI
Indemnification
Licensee shall defend, indemnify and hold the City harmless for all liabilities,
costs and expenses for injuries or damages sustained as a result of or arising out of the
installation, maintenance, presence, use, operation or removal of Licensee's vending
machines, or the use or consumption of any products disbursed there from.
SECTION VII
Non - Assignability
This Agreement may not be assigned in whole or part without the prior written
consent of the City.
SECTION VIII
General Conditions
The purpose of this Agreement, time is of the essence and should any dispute
arise concerning the breach, enforcement or interpretation of this Agreement, the laws of
the State of Washington shall apply, venue shall be placed in Franklin County
Washington, and the prevailing parties shall be entitled to its reasonable attorney fees and
costs.
IN WITNESS WHEREAS, the parties that caused this License Agreement to be
executed at Pasco, Washington on the day and year first written above.
CITY OF PASCO:
Date:
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IZPrrpaxinn__ Prvjc Manager A.e---
COCA -COLA BOTTLING COMPANY
YAKIMA AND TRI- CITIES:
By: i
Mat S ers, Branch Manager
Coca -Cola Bottling Co. Tri- Cities
By:
Mike Bird, Full -Line Vending Manager
Coca -Cola Bottling Co. Tri- Cities
Date: 13 c
Date: /L-