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HomeMy WebLinkAboutCoca Cola - 1999-02-16pjq6,4t)- eom,5ei. D1rj Council/Agency Meeting Held: DZpproveck ed./Continued to: _a]Cho it�pn�p� Approved Ansr/i.<e��) i] Denied �t i Council Meeting Date: October 18, 1999 dM ID lerk's Signature Department ID Number: CS99-044 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PREPARED BY: SUBJECT: C— r. Ity mmistra y, > -r , RON HAGAN, Director, Community Service APPROVE FIRST AMENDMENT TO STRATEGIC ALLIANCE:WND LONG TERM PARTNERSHIP AGREEMENT WITH COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA RAY SILVER C' Ad t adl Statement of Issue, Funding Source, Recommended Action, Alternative Actionis), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should the city amend the Strategic Alliance and Long Term Partnership Agreement with the Coca-Cola Bottling Company of Southern California by amending the written notice section? Funding Source: Not applicable. Recommended Action: Approve the First Amendment to the Strategic Alliance and Long Term Partnership Agreement with the Coca-Cola Bottling Company of Southern California, and direct the Mayor and City Clerk to execute same. Alternative Action(s): Do not approve the First Amendment to the Strategic Alliance and Long Term Partnership Agreement with the Coca-Cola Bottling Company of Southern California, and redesignate the staff member to whom written notices are sent. Analysis: When the Agreement with the Coca-Cola Bottling Company of Southern California was approved by City Council on February 16, 1999, Section 34 thereof entitled "Notice" designated Don Schulte, Schulte Sports Enterprises, as the city's representative to receive written notices of any terms of the agreement, with a copy to Ron Hagan, Director of Community Services. In addition, the Coca-Cola Bottling Company of Southern California representative was the General Manager at 1334 Central Avenue, Los Angeles CA 90021. While Mr. Schulte will continue to advise the city and receive an annual commission for negotiating the Coca-Cola agreement, the day to day notices regarding implementation of the agreement need to be the responsibility of a city staff member. The attached First Amend- �1 REQUEST FOR COUNCIL ACTION MEETING DATE: October 18, 1999 DEPARTMENT ID NUMBER: CS99-044 ment will appoint Ron Hagan, Director, Community Services as the city's agent to receive written notices under the terms and conditions of the agreement. The Coca-Cola Bottling Company of Southern California has assigned the implementation of the agreement with the city to Gary Parzych, Branch Manager of the Orange County Division of Coca-Cola, 700 West Grove, Orange, CA 92865. Mr. Parzych's name has been inserted as the Coca-Cola agent to receive written notices pertaining to the agreement. Environmental Status: Not applicable Attachment(s): First Amendment to the Strategic Alliance and Long Term Partnership Agreement with the Coca-Cola Bottling Company of Southern California RCA Author: RH:cr Amend of Notice Section of Coke -2- October 5, 1999 11:38 AM �- CITY OF HUNTiNGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CALIFORNIA 92648 CONNIE BROCKWAY CITY CLERK LETTER OF TRANSMITTAL OF ITEINI APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTEtiGTON BEACH • Mlo � I ,. / Name 1 l/ .. - W We", strex City, StateWp See Attached Action Agenda Item ATTENTION: d"�A y '6Xmic& m "v"?.&ems DEPARTMENTrJieAZW e dP Wa& , /� ✓ 4AI REGARDINGA'42 A 0f}"/�J7� . 91ne1y1"r4-1 A ya-66'eA111la e-,e r�6 ee n�z ae rf Date of Approval Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page Agreement Bonds RCA Deed CC: I-��t�� �►-��/ - -- S v Name 1 Dip-tment RCA/ Agreement Name Department RCA Agreement Insurance Other - tiR Sr" Insurance Other' Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Risk Management Dept. Insurance Received by Name - Company Name - Date Glallowup/coverltr I Telephone: 714-536.5227) Ti FIRST AMENDMENT TO STRATEGIC ALLIANCE AND LONG TERM PARTNERSHIP AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA This FIRST AMENDMENT is made and entered into effective f Ih 6m IF , 1999, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California (hereinafter referred to as "City"), and the COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA, a California corporation (hereinafter referred to as "Coca-Cola"). WHEREAS, City and Coca-Cola'entered into an agreement on February 16, 1999. entitled "Strategic Alliance and Long Term Partnership Agreement Between the City of Huntington Beach and the Coca-Cola Bottling Company of Southern California," which agreement shall hereinafter be referred to as the "Agreement." City and Coca-Cola desire to amend the Agreement to modify the notice provisions set forth in Section 34 of the Agreement: NOW THEREFORE, the Agreement is hereby amended as follows: SECTION 1: AMENDMENT TO SECTION 34 OF THE AGREEMENT Section 34 of the Agreement now reads as follows: SECTION 34. NOTICE Any written notice, given under the terms of this Agreement, shall be either delivered personally or mailed, certified mail, postage prepaid, addressed to the party concerned, as follows: CITY OF HUNTINGTON BEACH: COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA: Ron Hagan Coca-Cola Bottling Co. of Southern Calif. Director of Community Services Attention: Gary Parzych City of Huntington Beach Branch Manager, Orange County Division 2000 Main Street, P.O. Box 190 700 West Grove Huntington Beach, CA 92648 Orange, CA 92865 SIGNATURES ON NEXT PAGE SECTION II: REAFFIRMATION OF TERMS AND CONDITIONS OF AGREEMENT Except as specifically modified herein, all other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to the Agreement to be executed by and through their authorized offices the day, month and year first above written. COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA, a California co rati n By: Terry Fitch ITS: Group Vice President/General Manager AND ITS: Division Chief Financial Officer/ Director of Finance REVIEWED ANF13 APPROVED: G4-1r Administrator CITY OF HUNTINGTON BEACH, a munici a] corporation of the State of Califo 'a Mayor ATTEST: City Cleric ./off/47g APPROVED AS TO r City Attorney 9 j�G INITIAT D PROVED: 10 5 ector of Vommunity Services j mfagree/cocac ola-s tam! 09/ 09'99 ATTACHMENT #1 tTY OF HUNTINGTON BEAR G Do-o 'T �aB�NSvN-COX MEETING DATE: June 7, 1999 DEPARTMENT ID NUMBER: CS 99-022 Council/Agency Meeting Held: c%' Def rred/Continued to: �v�� ity Clerk's Signature p v d a di#ionally A roved Elenied Council Meeting Date: June 7, 19 9 Department ID Number: CS 99-022 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator PREPARED BY: RON HAGAN, Director, Community Sery SUBJECT: Approve Implementation of Coca-Cola Agr ent Regarding Vending Machines Statement of Issue, Funding Source, Recommended Action, Alternative Action(sj, Analysis, Environmental Status, Affachment(s) Statement of Issue: There is a need to approve funding from the Coca-Cola Bottling Company of Southern California annual payment of $300,000 to the City to pay for the necessary electrical service for the 150 locations for vending machines the City has to provide in the contract. Funding Source: Coca-Cola Bottling Company of Southern California Agreement with the City. The Public Works painting crew was reinstituted with $250,000 of the $300,000. The $35,000 needs to be allocated for payment of electrical service for the vending machines. Recommended Action: Approve an amendment to the FY 98199 budget allocating into Account #AA-CS-345-3-90-00 $35,000 from the $300,000 deposited into the General Fund from the Coca-Cola Agreement for the hiring of an electrical contractor to provide the necessary service for 150 vending machine locations per the agreement with Coca-Cola. Alternative Action[sl: Select an alternate -funding source for payment of these obligations for electrical work. Analysis: On February 22, 1999, the City Council entered into an agreement with the Coca-Cola Bottling Company of Southern California. The agreement pays the City $300,000 per year for ten years plus other benefits. In exchange for the annual income to the General Fund of $300,000, the City is responsible for providing electrical service at 150 locations for the vending machines. The cost for electrical services is $35,000. The City will issue a purchase order for the electrical contractor utilized by Coca-Cola to facilitate, as quickly as COCA-COL.DOC -2- 06/01/99 11:25 AM lt�/ *QUEST FOR COUNCIL ACT& MEETING DATE: June 7, 1999 DEPARTMENT ID NUMBER: CS 99-022 possible, the installation of vending machines throughout the City. Public Works City Electrician will oversee this contract. Criteria for Appropriation of Funds: The $35,000 requested for electrical services in accordance with the Coca-Cola Bottling Company of Southern California agreement will be offset by related new revenue. Environmental Status: Not applicable. Attachment(s): COCA-COL.DOC -3- O6101/99 11:25 AM i • • • ATTACHMENT #1 • Strategic Alliance Agreement between Huntington Beach and Coca-Cola • general locations: beach restrooms; Huntington Beach Pier; beach lockers; beach "Comfort Zones"; lifeguard headquarters; parks and recreation facilities; and other City facilities such as police/fire stations, City offices and libraries. The initial designated locations of vending sites are specified in Exhibit "A." Exhibit "A" shall be considered a working exhibit that may be changed with the parties' mutual consent. City will use its best efforts to allow Coca-Cola to install vending machines at the locations listed in Exhibit "A." At this time, Coca-Cola will not be allowed to place vending machines at the City bus shelters. However, if City amends its General Plan and ordinances to allow vending in-i;s-right-of- way and assuming the placement of vending machines at the City bus shelters is othenvise allowed under the applicable laws, City will grant to Coca-Cola the right to place vending machines at its bus shelter locations. With regard to the vending machine locations, City will provide the stub -out of electrical utility to all vending machine locations, which do not already have available electrical hookup. Coca-Cola shall have the responsibility to connect the vending machines to the stub -out sites and City shall pay for any electrical/utility charges incurred for the operation of the vending machines. Subject to the prior written approval by City, Coca-Cola shall develop a custom -designed vendor front for its vending machines, specific to City. b) Beach and Park and Recreation Concessions: City will use its best efforts to align Category Exclusivity with concessions currently serving competitive products and currently under lease agreements with City upon renewal of those lease agreements. In addition, City will use its best efforts to ensure that those a, ree/Coca-3..'jmE'jn 0112S.99 L� • • • 0 ATTACHMENT #2 0 0 • • CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Ray Silver, City Administrator From: John Reekstin, Director of Administrative Services Subject: FIS 98-38 Approve Implementation of Coca-Cola Agreement Regarding Vending machines and Payment of Consultant Date: May 24, 1999 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Approve Implementation of Coca-Cola Agreement Regarding Vending Machines and Payment of Consultant." If the City Council approves this action, (total appropriation $35,000), the City's unreserved, undesignated General Fund Balance at September 30, 1999 will be reduced to $7,715,401. zli- JAn Reekstin, Director of Administrative Services 9 0 0 Adopted Current Fund Balance General:Fuhd:_:..,: Budget :-.Estimate. Beginning Fund Balance 10/1/98 (unaudited) $ 8,987,000 $ 8,987,000 Plus: Estimated Revenue 107.860.642 109,524,481 Less: Estimated Expenditures (109,890,397) (109,399,000) Less Pending/Approved FIS's (1,362,080) Less: FIS 99-37 - (35,000) Estimated 9/30/99 Balance $ 6,957.245 17$ 7,711 5,401 Estimated General Fund Balance at September 30, 1999 $9,000,000 - $8,000.000 - ......... $7,000,000 $6,000,000 $5,000,00D - $4,000,000 - $6,957,245 7,716,401 $ $3,000,000 - $2,000,000 - II $ 1 1000 1000 - $_ ADOPTED BUDGET CURRENT ESTIMATE CITY OF HUPJTIPJGTDPJ BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK LETTER OF TRAtiS.NIITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTOti BEACH DATE: lcehrdQ ova �y TO: O a- C 0la �a1��J� f (a . _�F . a 14. Name if f 33� Len &4, 4ve _ 5tre t 7o 4in Ze S9av City, State, zip ATTENTION: DEPARTMENT: YIZ See Attached Action Agenda Item /- / _ Date of Approval 9 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: t7 Connie Brockway City Clerk Attachments: Action Agenda Page Agreement Bonds RCA Deed CC: Ag r, Awl 051 z ✓ Name Department RCA Agreement Name Name Department RCA Department RCA Insurance Other / Insurance Other Agreement Insurance Other Agreement Insurance Other [tame Department RCA Agreement Insurance Other Risk Management Dept. Insurance Received by Name - Company Name - Date G:FolIowup/coverltr t Telephone: 714-535-52271 (9) 02/16/99 - Council/Agency Agenda - Page 9 License Fees Exemption - Oppose Mandating Social Security Coverage For State_ & Local Employees — Approve the following actions: 1. Authorize the Mayor to send a letter to the author and appropriate State Legislative Committees that express support for AB-64 (Ducheny), and SB-10 (Rainey). 2. Authorize the Mayor to send a letter to the author and appropriate State Legislative Committees that express opposition to AB-83 (Cardenas)_ 3. Authorize the Mayor to send a letter to Congressman Dana Rohrabacher and the entire California Congressional Delegation requesting their opposition to the proposal before Congress to mandate that all State and Local Governments become a participant in the Federal Social Security Program. Submitted by Administration [Approved 6-0-1 (Garofalo: Abstain)] E-13. (City Council) Anorove Acquisition Of Property From S & C Oil Company For Goldenwest Street Right -Of -Way Widening Between Ellis Avenue & Clay Street — (Holly(_Seacliff Development Agreement Area) AP No. 111-120-01 & Authorize Acceptance Of Deeds —1. Approve the acquisition of AP No. 111-120-01; and 2. Approve and authorize execution of the Agreement for Purchase and Sale of Real Property and Escrow Instructions by the Mayor and City Clerk; and 3. Accept the attached easement deeds for the parcel described herein and authorize acceptance by the City Clerk with recording to follow through indicated escrow. Submitted by the Administrative Services Director [Approved 7-0] E-14. (City Council) Aonrove Anoointment Of Public Works Commissioner— Stanle Piechota — To Fill Term Vacated By Wally Carroll — Appoint Stanley J. Piechota as recommended by Council Liaisons Pam Julien and Tom Harman, to fill the remainder of Commissioner Wally Carroll's term which expires June 30, 2001. Submitted by the Public Works Director [Approved 7-01 F. Administrative Items F-1. (City Council) Approve Strategic Alliance And Loner Term Partnership Agreement With Coca Cola Bottling Company Of Southern California Communication from the Community Services Director transmitting a proposed Strategic Alliance and Long Terra Partnership Agreement with the Coca-Cola Bottling Company of Southern California for the purpose of providing revenue for the development and maintenance of beach, park, and other city facilities. Recommended Action: Motion to: Approve the Strategic A11►ance and Long Term Partnership Agreement With The Coca- Cola Bottling Company Of Southern California, and authorize the Mayor and City Clerk to execute same. [Approved 7-01 G. Ordinances G-1. Ordinance For Adoption G-1A. (City Council) Aoorove Adeetion Introduction as Amended Of Ordinance No. 3412 — Amendment To Chanters 9.20 HBMC Relating To Picketing Of Private Residences — Adept Introduce Ordinance No. 3412 — "An Ordinance of the City of Huntington Beach Amending Chapter 9.20 of the Huntington Beach Municipal Code Relating to Picketing of Private Residences." Submitted by the Chief of Police a ��yy A�q6yN_c56 Council/Agency Meeting Held: Def red/Continued to: Approved ❑Conditionally Approved ❑Denied H 07Y Cit erk's Signature Council Meeting Date: February 16, 1999 Department ID Number: CS 99-008 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator6ft/ , PREPARED BY: RON HAGAN, Director, Community Services kl__� SUBJECT: APPROVE STRATEGIC ALLIANCE AND LONG TERM PARtNER-<r=_.` SHIP AGREEMENT WITH COCA -COLA BOTTLING COMPANY dF, SOUTHERN CALIFORNIA r- Z_n — Statement of Issue, Funding Source, Recommended Action, Alternative Action(sj, Analysis, Environmental Status, 46chdent(sj 1 Statement of Issue: Shall the city enter into a Strategic Alliance and Long Term Partnership Agreement with the Coca-Cola Bottling Company of Southern California for the purpose of providing revenue for the development and maintenance of beach, park, and other city facilities? Funding Source: Revenue to the General Fund Recommended Action: Motion to approve the Strategic Alliance and Long Term Partnership Agreement with the Coca-Cola Bottling Company of Southern California, and authorize the Mayor and City Clerk to execute same. Alternative Action(s): Do not approve the Strategic Alliance and Long Term Partnership Agreement with the Coca-Cola Bottling Company of Southern California, and direct staff to renegotiate the terms and conditions for the Strategic Alliance and Long Term Partnership Agreement. Analysis: Last year, City Council approved the hiring of Schulte Sports Enterprises (SSE) to act as the city's agent in developing Strategic Alliance and Long Term Partnership Agreements with national corporations. The purpose of these alliances is to develop an alternative revenue source other than increasing taxes to provide for desired levels of maintenance for city facilities. SSE and city staff began this process by identifying national corporations that have the financial potential to be corporate partners. The "official" drink category .is the first Strategic Alliance and Long Term Partnership Agreement. Future categories may include film, credit card, airline, and automobile. REQUEST FOR COUNCIL ACTION MEETING DATE: February 16, 1999 DEPARTMENT ID NUMBER: CS 99-008 The city originally contemplated a "naming rights" program similar to cities that have corporate partners for naming stadiums and arenas. However, even with 11 million visitors a year to the beach, the marketing value of naming rights would not produce the financial benefits that would justify the naming rights and signs required on the pier and Pier Plaza. Consequently, SSE and staff have designed an alternative corporate partnership structure whereby the city's corporate partners are provided access to the community for the sale of their product on a category and geographic exclusivity basis in exchange for upfront cash and inkind services including improvements to parks and marketing the city. This approach has been embraced by major corporations and has resulted in the first Strategic Alliance and Long Term Partnership Agreement with the Coca-Cola Bottling Company of Southern California. The following preamble to the agreement explains the reason for the Strategic Alliance and Long Term Partnership Agreement: WHEREAS, the City has a substantial financial investment in the development of its municipal pier and the Pier Plaza area; and City currently operates and maintains three miles of visitor -serving beach, 54 neighborhood parks, 5 community parks, and the Huntington Central Park Regional Facility; and City is responsible for a central library and several branches, a civic center, police and fire stations, and other public facilities; and City wishes to provide its citizens with quality maintenance, security and timely replacement of beach and park amenities; and Coca-Cola wishes to establish a strategic alliance and long term partnership with City for the funding of beach and park maintenance, security and improvements. Both Coca-Cola and City agree to this partnership program. In exchange for $300,000 per year cash and other inkind product and marketing services, Coca-Cola will be given drink exclusivity rights for a period of ten years. Consequently, the total cash value of the partnership over the ten years is $3 million. This is in addition to approximately $300,000 worth of collaborative marketing, park/beach improvements, and event sponsorships Coca-Cola plans to do as a result of this agreement. In exchange for this payment, Coca-Cola will be the official drink of Surf City, Huntington Beach, and have territory exclusivity on all properties owned or controlled by the city, subject however, to any prior agreements with other drink companies that currently exist. Coca-Cola will also have category exclusivity with respect to all carbonated and noncarbonated, nonalcoholic beverages defined as soft drinks, juices, juice drinks, teas, isotonics, water, and frozen beverages (which do not include ice cream or frozen yogurts). Coca-Cola will have the right to use Surf City, Huntington Beach in its advertising and promotional campaigns. Siganage opportunities will be incorporated into the facilities that are developed as a result of this QocumeW -2- 02/03/99 3:08 PM REQUEST FOR COUNCIL ACTION MEETING DATE: February 16, 1999 DEPARTMENT ID NUMBER: CS 99-008 agreement. Any additional signs will be subject to the city's sign code ordinances and approval process. The value of the Strategic Alliance and Long Term Partnership Agreement to Coca-Cola is in the points of sale that the city must provide. The agreement calls for the city to provide a minimum of 150 vending machine locations on city property. The locations are listed in Exhibit A to the agreement and include areas along the beach, in parks and recreation centers, maintenance facilities, civic center complex, libraries, and other city facilities. In addition to installing vending machines, Coca-Cola also wishes to install comfort stations adjacent to city rest room facilities along the beach. These comfort stations would include convenience lockers, baby changing tables, showers, and vending machines. Coca-Cola will also be allowed to do mobile vending subject to city approval along the beach and at citywide special/specific events. They will also do sample and promotional activities with prior city approval at various park/beach locations. This particular benefit is very important to Coca- Cola as it provides a direct access to the community to sample products. Coca-Cola will implement its "friends of the park" program which it has been very committed to in other cities. Coca-Cola will select one park per year and dedicate a portion of its local distributor's revenue to improving that park by painting and/or replacing basketball backboards, tennis nets and backboards, playground equipment, murals, benches, drinking fountains, etc. In addition, the agreement calls for hold harmless and insurance provisions for both parties. The city has numerous concessionaires who provide drink service at the beach, Huntington Central Park, municipal golf course, etc. All of the existing drink contracts will remain in place and Coca-Cola and the city will use their best efforts to provide the concessionaires with drink product at lowest national prices. The process used to select Coca-Cola as the recommended drink category for the Strategic Alliance and Long Term Partnership Agreement included the following: • Request for proposals sent to all qualified drink manufacturers • Submission of written proposals by Coca-Cola and Pepsi Bottling Company • Four-hour presentations by each company to a review team of city staff and SSE • Negotiations of the final Strategic Alliance and Long Term Partnership Agreement with the City Attorney's Office The proposal has also been reviewed by all city department heads; the city's Executive Team, the Economic Development Committee, and the Community Services Commission. Coca-Cola is an international company yet it conducts its business on a community by community basis. The traditional image of Coca-Cola, the history of its promotional and marketing campaign, its commitment to revitalizing parks, it commitment to providing customer service and amenities, and its worldwide promotional opportunities are the reasons that SSE and staff are recommending Coca-Cola to be the city's Strategic Alliance and Long Term Partnership Agreement in the drink category. Document? -3- 02/43/99 3:oa PM REQUEST FOR COUNCIL ACTION MEETING DATE: February 16, 1999 DEPARTMENT ID NUMBER: CS 99-008 A copy of both the Coca-Cola and Pepsi proposals and a matrix showing the comparison of the proposals is available in the City Clerk's Office and has been provided to City Council as backup information for this agenda -item. In:summary, staff has followed .CounciI.direction in developing a Strategic Alliance and Long .Term Partnership Agreement program, .and feels that the proposed -agreement with Coca-Cola represents the true value of benefits provided in the agreement. The partnership agreement .will allow the city to provide the level of maintenance for public facilities that is consistent with the Council policy to provide the best possible maintenance while not increasing taxes. Schulte Sports Enterprises, city staff, and Coca-Cola are extremely excited and enthusiastic for this "first of a kind" partnership agreement. Environmental Status: Not applicable Attachment(s): RCA Author: RH:cr Coke.doc -4- 02/03/99 3:32 PM ATTACHMENT #1 STRATEGIC ALLIANCE AND LONG TERM PARTNERSHIP AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA TABLE OF CONTENTS Page SECTION 1. COCA -COLA EXCLUSIVITY RIGHTS 1 SECTION 2. TERM 2 SECTION 3. ANNUAL FEE 2 SECTION 4. TERRITORY EXCLUSIVITY 2 SECTION 5. CATEGORY EXCLUSIVITY 3 SECTION 6. ACCESS TO CITY MARKS AND LOGOS 3 SECTION 7. SIGNTAGE REQUIREMENTS AND LOCATIONS 4 SECTION 8. POINTS OF SALE 5 SECTION 9. SAMPLINTG/PROMOTIONAL OPPORTUNITIES 8 SECTION 10. FRIENDS OF THE PARK PROGRAM 9 SECTION 11. PRIORITIES 9 SECTION 12. HOLD HARMLESS AGREEMENT 9 SECTION 13. WORKERS' COMPENSATION INSURANCE 9 SECTION 14. INSURANCE 10 SECTIOti 15. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENTS I 1 SECTION' 16. MAINTENANCE OF VENDING MACHINES AND OTHER EQUIPMENT 11 SECTION 17. TERMINATION UPON DEFAULT 12 SECTION 18. WITHOUT CAUSE TERMINATION 14 SECTION 19. COMPLIANCE WITH LAWS 15 SECTION 20. REMOVAL OF VENDING MACHINES AND OTHER EQUIPMENT AND LOSS OF RIGHTS AFTER TERMINATION 15 SECTION 21. ASSIGNING AS BREACH 16 SECTION 22. . ' WAIVER OF CLAIM AGAINST CITY 17 SECTION 23. TERMS BINDING ON SUCCESSORS 18 SECTION 24. EMINENT DOMAIN 18 SECTION 25. CONFLICT OF INTEREST 18 SECTION 26. PHOTOGRAPHY 19 SECTION 27. :VON-DISCLOSURES/PRESS RELEASES 19 SECTION 28. ALCOHOLIC BEVERAGES 19 SECTION 29. CUMULATIVE REMEDIES 19 SECTION 30. WAIVER OF BREACH 19 SECTION 31. FORCE MAJEURE - UNAVOIDABLE DELAYS 20 SECTION 32. TAXES 20 SECTION 33. SECURITY DEPOSIT 20 SECTION 34. NOTICE 21 agree/Coca-31j mf/j n/Q 1 /28/99 SECTION 35. ATTORNEY'S FEES 21 SECTION 36. HOLDOVER 22 SECTION 37. CONTROLLING LAW AND VENUE 22 SECTION 38. SECTION TITLES 22 SECTION 39. TIME OF ESSENCE 22 SECTION 40. SURVIVAL OF INDEMNITIES 22 SECTION 41. NON -LIABILITY OF CITY OFFICIAL, EMPLOYEES OR AGENTS 23 SECTION 42. AGREEMENT IN WRITING 23 SECTION 43. PARTIAL INVALIDITY 23 SECTIOI` 44. AGREEMENT IN COUNTERPARTS 23 SECTION 45. ENTIRETY 24 agree/Coca-3/jmf/jni01 /28i99 STRATEGIC ALLIANCE AND LONG TERM PARTNERSHIP AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA THIS AGREEMENT ("Agreement") -is made; and- entered into effective 2S�4gjj g.,e jV//�. 199 9 , by and between the CITY OF HUNTINGTON-BEACH, a municipal corporation of the State of California (hereinafter referred to as "City"), -and the COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA, a California corporation (hereinafter referred to as "Coca-Cola"). WHEREAS, City has a substantial financial investment in the development of its municipal pier and the Pier Plaza area; and City currently operates and maintains three miles of visitor -serving beach, 54 neighborhood parks, 5-community parks, and the Huntington Central Park Regional Facility; and City is responsible for a central library and several branches, a civic center, police and fire stations, and other public facilities; and City wishes to provide its citizens with quality maintenance, security and timely replacement of beach and park amenities; and Coca-Cola wishes to establish a strategic alliance and long term partnership with City for the funding of beach and park maintenance, security and improvements. NOW, THEREFORE, for and in consideration of the promises and covenants hereinafter contained and intending to be legally bound, the parties covenant and agree as follows: SECTION 1. COCA -COLA EXCLUSIVITY RIGHTS City, in consideration of the Agreement hereinafter stated, grants to Coca-Cola for the purposes stated herein, rights and privileges to certain territory exclusivity, category exclusivity, use of City logo and marks, signage, access to points of sale, access to special City held events, and provisions of exclusive vending locations on City property as further described herein. agree/Coca-3 /j mf/j n/o 1 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola Coca-Cola hereby designates Julie Lombardi, who shall represent it and be its sole contact and agent in all consultations with City during the performance and implementation of this Agreement throughout the entire term of the Agreement. City hereby designates -Don Schulte of Schulte Sports Enterprises:who-shall represent; it and be its sole-contact:and agent in - all:consultations with Coca-Cola during:the:performance and implementation-of.this Agreement .. - ..- ... . throughout the entire term of the Agreement. Any further agreements between Coca-Cola and City shall be negotiated through Don Schulte as City's agent, subject to City Council approval. SECTION 2. TERM The term of this Agreement shall be for ten (10) years from the date of this Agreement, unless sooner terminated as herein provided. SECTION 3. ANNUAL FEE In consideration of the rights and privileges provided to Coca-Cola under this Agreement, Coca-Cola agree to pay City an annual fee of Three Hundred Thousand Dollars ($300,000.00) for each of the ten (10) years of this Agreement. The fee specified in this Section shall be paid by Coca-Cola to the City Treasurer at 2000 Main Street, P.O. Box 711, Huntington -Beach, California, 92648, or at such other place or places as City may from time -to -time designate by written notice delivered to Coca-Cola. The annual fee shall be due on the date that this Agreement is fully executed and thereafter on each consecutive anniversary for the remaining years. If City does not receive the annual fee within ten (10) days from each due date, then a late charge of 5 percent (5%) shall be paid by Coca-Cola. In addition, one and a half percent (i '/z%) interest per month shall be added for each month payment hereunder is due but unpaid. SECTION 4. TERRITORY EXCLUSIVITY City grants to Coca-Cola the right of "Territory Exclusivity," subject to the limitations set forth herein, including the limitations set forth under "Category Exclusivity" defined in Section 5 agree/Coca-3/jmf/j n/01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola below. For the purposes of this Agreement, "Territory Exclusivity" is defined as exclusivity as to all properties owned or controlled by City and within the City limits of Huntington Beach, including City beaches, parks and. recreational -facilities, City offices, other public and municipal facilities and all -future propertiesvowned-or-'controlled-by:City-within-the.City:limits-of Huntington Beach. Provided, -however, the Territory.Exclusivity.on property- controlled • but not ._ owned by City, or owned by City but leased to a third party, is subject to approval of the property owner or the third party, respectively. City will use its best efforts to obtain such approval. SECTION 5. CATEGORY EXCLUSIVITY City grants to Coca-Cola the right of "Category Exclusivity," subject to the limitations set forth herein, including the limitations -set forth under "Territory Exclusivity" defined in Section 4 above. For the purposes of this Agreement, "Category Exclusivity" is defined as -ensuring that Coca-Cola is the only company provided exclusivity by City with respect to all carbonated and non -carbonated, non-alcoholic beverages defined as soft drinks, juices, juice drinks, teas, isotonics, water and frozen beverages. Frozen beverages shall not include ice creams and frozen yogurts. SECTION 6. ACCESS TO CITY MARKS AND LOGOS Coca-Cola shall have the right to use the official Huntington Beach City logo, the Huntington Beach Pier Plaza logo and City's "Surf City" trademarks. Coca-Cola will consult with City prior to the use of any of the City logos and trademarks and shall obtain City's prior written approval before using any of these logos and trademarks, which approval City shall not unreasonably withhold. agree/Coca-3/j mf/jn/0l /2 8/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola SECTION 7. SIGNAGE REQUIREMENTS AND LOCATIONS City, through its entitlement process, will work with Coca-Cola to develop a mutual agreed upon signage program. City shall provide Coca-Cola with -signage opportunities at the following properties owned or-controlled=by-.City.-and:within the!Citylimits of Huntington :•.�_. Beach, including, but not limited to: • parks and recreation facilities; • "Comfort Zones," defined as in Section 8 below; • beach lockers; • concession stands; and • Pier Plaza. Provided, however, the rights to signage given to Coca-Cola on property controlled but 9 not owned by City, or owned by City but leased.to a third party, is subject to approval of the property owner or the third party, respectively. City will use its best efforts to obtain such approval. Nothing in this Agreement gives Coca-Cola any rights to signage locations not in existence as of the execution of this Agreement unless consented to by City. For example, Coca- Cola does not possess the right to place its signs on City information boards constructed -or installed subsequent to the execution of this Agreement. The parties agree to negotiate other future signage opportunities and locations in good faith. Signage may be in the form of any of the following, not limited to, but which are mutually agreed upon by City and Coca-Cola: • wall murals; • banners/posters; • lifeguard towers; • tide/time and temp boards; .4 agree/Coca-3/jmf/jn/01 /28i99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola • City maps/brochures; • parkibeach benches; • volleyball nets; • trash barrels; • basketball boards; and • street Iamps. Coca-Cola represents and warrants that all of its efforts at signage will be environmentally sensitive, tastefully designed, promote an enhanced quality of life and comply with City ordinances and regulations. SECTION 8. POINTS OF SALE City shall make its best effort to provide Coca-Cola with the following points of sale for its beverage products: • All vending locations within City owned or controlled property and future City owned or controlled property with a minimum of one hundred fifty (150) vending locations; • beach concessions; • park and recreation concessions; • Beach Buggy operation; • future "Comfort Zones"/ kiosks; • City special events; and • beach lockers. a) Vending machine locations: Coca-Cola shall have access all vending machine locations designated by City, subject to the future construction of sites not yet in existence. The vending machines locations may be located at the following 5 agree/Coca-3/jmf/jn/01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola general locations: beach restrooms; Huntington Beach Pier; beach lockers; beach "Comfort Zones"; lifeguard headquarters; parks and recreation facilities; and other City facilities such as police/fire stations, City offices and libraries. The initial designated locations of_vending;sites are specified in Exhibit `.`A." .Exhibit f "A shall be considered a working exhibit that maybe changed with the parties' mutual consent. City will use its best efforts to allow Coca-Cola to install vending machines at the locations listed in Exhibit "A." At this time, Coca-Cola will not be allowed to place vending machines at the City bus shelters. However, if City amends its General Plan and ordinances to allow vending in -its -right-of- way and assuming the placement of vending machines at the City bus shelters is otherwise allowed under the applicable laws, City will grant to Coca-Cola the right to place vending machines at its bus shelter locations. With regard to the vending machine locations, City will provide the stub -out of electrical utility to all vending machine locations, which do not already have available electrical hookup. Coca-Cola shall have the responsibility to connect the vending machines to the stub -out sites and City shall pay for any electrical/utility charges -incurred for the operation of the vending machines. Subject to the prior written approval by City, Coca-Cola shall develop a custom -designed vendor front for its vending machines, specific to City. b) Beach and Park and Recreation Concessions: City will use its best efforts to align Category Exclusivity with concessions currently serving competitive products and currently under lease agreements with City upon renewal of those lease agreements. In addition, City will use its best efforts to ensure that those agree: Coca-3 Jmf/jn/0l /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola concessions currently serving Coca-Cola products remain exclusive -upon -renewal of those lease agreements. c) Beach Buggy: City shall grant Coca-Cola authorization 'to operate a maximum of two (2) proprietary,Beach•Buggies-on,thc City's beach: -During-special, events; _Coca-Cola may be -allowed to operate more -than two (2) Beach -Buggies on the City's beach subject to prior written approval by City. The Beach Buggies will offer Coca-Cola products to patrons on the sand. d) Comfort Zones: Subject to obtaining all necessary entitlements, approvals and funding, City will use its best efforts to provide sites for up to nine (9) "Comfort Zones" along the City's beach and along the State beach operated by City, subject to prior State approval on the State beach. City will use its best efforts to obtain these necessary entitlements, funding and approvals, after which Coca-Cola shall construct the Comfort Zones. City will provide Coca-Cola with a minimum of two (2) vending machines at each Comfort Zone location. If requested by City, Coca-Cola agrees to offer its assistance and expertise in the design of a mutually beneficial Comfort Zone design. e) City Special Events: City grants Coca-Cola the right to participate creatively in all City events, including those at the Pier Plaza Amphitheater, through beverage sales, sampling activities, signage at mutually agreed upon locations and event marketing, all of which are subject to the prior written approval of City. City will use its best efforts to mention Coca-Cola in all news releases regarding these events which are sent to the press by City. City shall also give Coca-Cola the first right -of -refusal to any opportunity for a non-alcoholic beverage company to sponsor a special event within the City limits of Huntington Beach. City shall 7 agree/Coca-3ijmfi jni01/28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola also give Coca-Cola twenty (20) tickets/passes for access to all City held events at Pier Plaza, but not to private promoter events. The exclusivity rights provided to Coca-Cola under this Agreement are subject to the those rights which are provided to other. soft- drink�and non-alcoholic•beverage'companies =which:have entered or may enter into contracts or other arrangements with event sponsors which City has already granted permits or which are under contract with City to hold those events. f) Beach Lockers: In an effort to provide convenience and service for the City's beach visitors, Coca-Cola has developed beach lockers for installation at three (3) to four (4) locations along the beachfront. Coca-Cola will consult with City and obtain City's approval on the design and graphics of the lockers. Subject to obtaining all necessary entitlements and approvals, Coca-Cola will fund and install these lockers at mutually agreed upon locations. City will allow Coca-Cola to place two (2) vending machines at each locker location. SECTION 9. SAMPLING/PROMOTIONAL OPPORTUNITIES City shall provide Coca-Cola with -all necessary permits to allow Coca -Cola -to. conduct its City approved sampling activities within the City limits of Huntington Beach. Coca-Cola's sampling activities on property controlled but not owned by City, or owned by City but leased to a third party, is subject to approval of the property owner or the third party, respectively. City will use its best efforts to obtain such approval. Prior to the implementation of sampling activities, Coca-Cola will provide City with written notification of its intent to conduct sampling activities at a specific location at least twenty (20) days prior to such event and obtain City's written approval before conducting such sampling activities. agree/Coca-3/jmf/jn/01 /2$I99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola SECTION 10. FRIENDS OF THE PARK PROGRAM Coca-Cola shall implement its "Friends of the Park Program." Coca-Cola is extremely committed and very active in the growth of and development of the youth in our communities. The purpose of the "Friends of.the-Park Program" is to beautify. and -maintain upkeep -of -the City's parksand recreational facilities- throughout the -term -of the Agreement. To achieve this purpose, Coca-Cola will implement its "Friends of the Park Program," under which Coca-Cola will, at a minimum, and subject to prior written approval by City, improve one park per year by repainting and/or replacing basketball backboards, providing murals specific to activities enjoyed at individuals parks and recreational facilities, and repainting and/or upgrading park benches. SECTION 11. PRIORITIES In the event there are any conflicts or inconsistencies between this Agreement and Coca- Cola's proposal, the terms of the Agreement shall govern. SECTION 12. HOLD HARMLESS AGREEMENT Coca-Cola shall protect, defend, indemnify and save and hold harmless City, its officers, officials, and employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with Coca-Cola's performance of or actions taken pursuant to this Agreement, or its failure to comply with any of its obligations contained in this Agreement by Coca-Cola, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of City. SECTION 13. WORKERS' COMPENSATION INSURANCE Coca-Cola shall maintain workers' compensation insurance in an amount of not less than One Hundred Thousand Dollars (S100,000) bodily injury by accident, each occurrence, One agreeiCoca-3, jmf/jn10112$199 Strategic Alliance Agreement between Huntington Beach and Coca-Cola Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit. Coca-Cola shall require all its contractors and agents to provide such workers' compensation insurance for all of their employees. Coca-Cola shall furnish to City a certificate of waiver of subrogation under the terms of the workers' compensation insurance and Coca-Cola shall similarly require all its contractors and agents to waive subrogation. SECTION 14. INSURANCE In addition to the workers' compensation insurance and Coca-Cola's covenant to indemnify City, Coca-Cola sliall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify Coca-Cola, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with this Agreement, and shall provide coverage in not less than the following amount: combined single limit bodily injury, personal injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form, which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000 for this Agreement. Said policy shall name City, its agents, officers, employees and volunteers as Additional - Insureds, and shall specifically provide that any other insurance coverage which may be applicable to this Agreement shall be deemed excess coverage and that Coca-Cola's insurance shall be primary. Under no circumstances shall said above -mentioned insurance contain a self -insured retention, or a "deductible" or any other similar form of limitation on the required coverage. No cancellation provision in any insurance policy shall be construed in derogation of the continuous duty of Coca-Cola to furnish insurance during the term of this Agreement. 10 agree/Coca-3/j mf/jn/01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola SECTION 15. CERTIFICATES OF INSURANCE: ADDITIONAL, INSURED ENDORSEMENTS Prior to execution of this Agreement, Coca-Cola shall furnish to City certificates of insurance and -additional insured endorsements;to each ofCoca-Cola's insurance policies;=subject.- _ to approval of the City Attorney, evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall: provide the name and policy number of each carrier and policy; 2. shall state that the policy is currently in force; 3. shall promise to provide that such policies will not be canceled, suspended, voided, reduced in coverage or in limits, or modified without thirty (30) days prior written notice to City; and shall state as follows: "The above detailed coverage is not subject to any deductible or self - insured retention, or arty otherform of similar type limitation." Coca-Cola shall maintain the foregoing insurance coverages in force throughout the term of this Agreement. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of City by Coca-Cola under. this Agreement. City or its representatives shall at all times have the right to demand the original or a copy of all said policies of insurance which Coca-Cola shall provide within fifteen (15) days of City's request. Coca-Cola shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. City shall not be responsible for premiums or assessments on the policies. SECTION 16. MAINTENANCE OF VENDING MACHINES AND OTHER EQUIPMENT Coca-Cola agrees to maintain its vending machines, signs, lockers, Comfort Zones and other equipment installed and/or operated pursuant to this Agreement in good order and repair at tl agree/Coca-3/jmf/jn/01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola Coca-Cola's own cost and expense during the entire term of this Agreement. Coca-Cola shall perform at its own cost and expense, any required maintenance and repairs, and should Coca- Cola fail, neglect or refuse to do so, City shall have the right to -perform such.maintenance or repairs for Coca-Cola, and Coca-Colaiagrees to,promptly reimburse City -for the cost•thereof. �' = Provided, however, that City shall first give Coca-Cola ninety (90) days written notice of its intention to perform such maintenance or repairs for Coca-Cola for the purpose of enabling Coca-Cola to proceed with such maintenance or repairs at its own expense. City shall not be obligated to make any repairs to, or maintain, any vending machines, signs, lockers, Comfort Zones and other equipment installed and./or operated by Coca-Cola pursuant to this Agreement. SECTION 17. TERNITNATION LION DEFAULT This Section covers default and termination of this Agreement for cause. (a) A "Default" shall be deemed to have occurred hereunder if. (i) Coca-Cola defaults in the making of any of the annual payments required to be made by it by the dates specified in the Agreement and does not cure within ninety (90) days; •o (U) (1) Either party defaults in the performance or observance of any other term, covenant, condition or provision of this Agreement; (2) Such default is of a kind which is curable or remediable; and (3) Such default continues for a period of ninety (90) days after service of a notice of default, or, if the curing or remedying of such default requires the doing of work or the taking of action which cannot with due diligence be completed in a ninety (90) day period, continues beyond such period following the end of the 12 agreelCoca-3ljmVjnl01f28199 Strategic Alliance Agreement between Huntington Beach and Coca-Cola period of ninety (90) days after the service of a notice of default as is reasonably necessary (taking into account unavoidable delays) to do the work required or to complete such other action as is required to cure or remedy the default in question; Ks (iii) Either party defaults in the performance or observance of any term, covenant, condition or provision of this Agreement and either: (1) Such default is not curable or remediable and is with respect to a substantial obligation of this Agreement, the non -defaulting party cannot be made whole therefor by the collection of money damages, and such default evidences a willful or negligent disregard by the defaulting party of its substantial obligations under this Agreement; or (2) Such default, in the light of prior defaults by the defaulting party, establishes a course of conduct of willful or negligent disregard by the defaulting party of its obligations,.- substanti a] or otherwise, under this Agreement; •s (iv) There shall be filed against either party in any court pursuant to any statute either of the United States or of any state, a petition in bankruptcy or insolvency or for reorganization or for the appointment of a receiver or trustee of all or substantially all of said party's property, and within one - hundred twenty (120) days of such filing said party fails to secure a discharge of such petition or the dismissal of such proceedings, or said 13 agree/Coca-3/jmf/jn/01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola party files a voluntary petition in bankruptcy or insolvency or for such reorganization or for the appointment of such a receiver or trustee or makes an assignment for the benefit of creditors or petitions for or enters into an arrangement for the benefit of creditors. (b) Within a reasonable time after the occurrence of any Default, the non -defaulting party shall have the right to give the defaulting party notice of intention to terminate this Agreement. Upon the effective date of such termination specified in such notice (which shall be not less than ten (10) days after the giving of such notice), the term of this Agreement shall end as frilly and completely as if that were the date herein fixed for the expiration of the tern of this Agreement. No Default shall be deemed to have occurred under this Section until the expiration of ninety (90) days after giving of a notice of default notwithstanding the fact that the claimed default is not curable or remediable, so that the defaulting party will have an opportunity to initiate a judicial proceeding to determine whether the claimed default constitutes a Default hereunder. (c) Within ninety (90) days after this Agreement is terminated, Coca-Cola.shall . . remove all vending machines, and other equipment and signs that Coca-Cola installed and/or operated pursuant to this Agreement if City- so desires, except as expressly excepted by City in writing. (d) Notwithstanding any of the above, City may bring a separate action for any default in Coca-Cola's payment of the required annual payments. SECTION I S. WITHOUT CAUSE TERMINATION Notwithstanding any other provision in this Agreement and in addition to any other remedy available to City, City shall have the option to terminate without cause this Agreement 14 agree/Coca-3/jmf/jn%01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola with ninety (90) days written notice to Coca-Cola. Provided, however, that should City terminate this Agreement pursuant to this Section, City will not enter into a similar agreement with a beverage competitor of Coca-Cola for the duration of the term of this Agreement. In -addition, should --City terminate --this -Agreement. pursuant. to. this: Section, -.City shall- return. to. Coca-Cola a pro-rata refund of that year's annual fee without interest. SECTION 19. COMPLIANCE WITH LAWS Coca-Cola shall at its own cost and expense comply with all statutes, ordinances, regulations, and requirements of all governmental entities, both federal and state and county or municipal, relating to Its actions tinder this Agreement whether Such Statutes, ordinances, regulations, and requirements are now in force or hereinafter enacted and whether or not in the contemplation of the parties. The judgment of any court of competent jurisdiction, or the admission by Coca-Cola in a proceeding brought against Coca-Cola by any government entity, that Coca-Cola has violated any such statute, ordinance, regulation, or requirement shall be conclusive as between City and Coca-Cola and shall be ground for termination of this Agreement by City. SECTION 20. REMOVAL OF VENDING MACHINES AND OTHER EQUIPMENT AND LOSS OF RIGHTS AFTER TERMINATION Within ninety (90) days after this Agreement is terminated for any reason, Coca-Cola shall remove all vending machines, and other equipment and signs that Coca-Cola installed and/or operated pursuant to this Agreement if City so desires, except as expressly excepted by City in writing. Provided, however, that the Comfort Zones, beach lockers and equipment installed or constructed pursuant to the Friends of the Park Program shall become the property of the City upon termination of this Agreement. If Coca-Cola fails to remove the above vending machines, signs and equipment within this ninety (90) period, City may: 15 agree/Coca-3/j mf/j n/01 /2 8/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola (a) Continue this Agreement in effect, in which event City -shall be entitled to enforce all of its rights and remedies under this Agreement, including -the right to recover the annual fee specified in this Agreement; or (b) Remove the above vending, machines, sips: and -equipment-at Coca=Cola's sole cost and expense, including the use of any. or all of the security deposit -set forth in Section 33 below, and recover any amount necessary to compensate City for all detriment proximately caused by Coca-Cola's -failure to perform its obligations under this Agreement. In addition, all rights granted to Coca-Cola under this Agreement including, but not limited to, Territory Exclusivity, Category Exclusivity, rights to use City logos and trademarks, rights to conduct sampling activities within the City limits of Huntington Beach and rights to participate in City events, shall cease upon the termination of this Agreement. Coca-Cola agrees that immediately after termination of this Agreement, City shall have the right, and Coca-Cola waives any claims against City, to enter into another similar type contract with a competitor of Coca-Cola. SECTION 21. ASSIGNING AS BREACH Coca-Cola shall not encumber, assign, or otherwise transfer this Agreement, or any right or interest in this Agreement, without the express written consent of City first had and obtained. A consent by City to one assignment or transfer to another person shall not be deemed to be a consent to any subsequent assignment or transfer to another person. Any encumbrance, assignment or transfer, without the prior written consent of City, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of City, terminate this Agreement. 16 agree/Coca-3/jmf/j n/01/2 8/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola SECTION 22. WAIVER OF CLAIMS AGAINST CITY Coca-Cola hereby waives any claim against City, its officers, officials, employees or agents for damage or loss caused by any suit or proceeding directly or indirectly attacking the validity of this Agreement, or any;part -thereof or by any judgment or award in any suitor .proceeding declaring this Agreement null, void or voidable or delaying the same or any part thereof from being carried out. In addition, Coca-Cola acknowledges that this Agreement includes provisions granting to City the right to terminate this Agreement and upon such termination to order the removal of and/or remove vending machines, and other equipment and signs that Coca-Cola installed and/or operated pursuant to this Agreement. Coca-Cola fully waives, releases and relinquishes forever any and all claims, demands, rights and causes of action that it may have against City under California Business and Professions Code, Section 5200, et seq., any amendments thereto or other future laws, for any compensation from City not otherwise provided herein, including the payment of just compensation, as defined in the eminent domain Iav,- (Title 7, commencing with Section 1230.010, of Part 3 of California Code of Civil Procedure), in the event City exercises any such rights in accordance with the provisions of this Agreement. In connection with the foregoing release, Coca-Cola acknowledges that it is familiar with Section 1542 of the California Civil Code, which reads: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." Coca-Cola acknowledges that the release contained herein includes all known and unknown, disclosed and undisclosed, and anticipated and unanticipated claims. Coca-Cola realizes and acknowledges that it has entered into this Agreement in light of this realization and, 17 agree/Coca-3/jmf/jn/01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola being fully aware of this situation, it nevertheless intends to waive the benefit of California Civil Code Section 1542, or any statute or other similar provision now or later in effect. The releases contained herein shall survive any termination of this Agreement. SECTION 23. TERMS BINDING ON SUCCESSORS All the tertns,. covenants. and conditions of this Agreement shall inure to the benefit of ' and be binding upon the parties and their successors and assigns. The provisions of this Section shall not be deemed as a waiver of any of the conditions against assignment hereinbefore set forth. SECTION 24. EMINENT DOMAIN If any property upon which Coca-Cola's rending machines, signs, lockers, Comfort Zones or other equipment installed and/or operated by Coca-Cola pursuant to this Agreement are located is taken in eminent domain, the entire award shall be paid to City. SECTION 25. CONFLICT OF INTEREST Coca-Cola shall employ no City official nor any regular City employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions.of:the California Government Code. Coca-Cola warrants and covenants that no official or employee of City, nor any business entity in which an official or employee of City is interested, (1) has been employed or retained to solicit or aid in the procuring of this Agreement; or (2) will be employed in the performance of this Agreement without the immediate divulgence of such fact to the City Attorney or City Administrator. In the event City determines that the employment of any such official, employee or business entity is not compatible with such official's or employee's duties as an official or employee of the City of Huntington Beach, Coca-Cola, upon request of City, shall terminate such employment immediately. For breaches or violation of this Section, City shall have the 18 agree/Coca-3/jniVjn/0 1/28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola right both to annul this Agreement without liability and, in its discretion, recover the full amount of any such compensation paid to such official, employee or business entity. SECTION 26. PHOTOGRAPHY City has the right to for its own�purposes; or may:grant permits to persons, or;corporations engaged in the production of still and motion pictures, -television programs, advertising -and related activities, to take photographs or motion pictures of Coca-Cola's activities, vending machines, signs, lockers, Comfort Zones and other equipment installed and/or operated by Coca- Cola pursuant to this Agreement without obtaining Coca-Cola's prior approval or without paying Coca-Cola any compensation for such activities. SECTION 27. NON-DISCLOSURES!PRESS RELEASES Coca-Cola shall consult with City and obtain City's prior written approval before issuing any press releases or otherwise making any public statements with respect to this Agreement or the transactions contemplated hereby. SECTION 28. ALCOHOLIC BEVERAGES Notwithstanding anything to the contrary, the safe of alcoholic beverages by Coca-Cola within the City limits of Huntington Beach is expressly forbidden. SECTION 29. CUMULATIVE REMEDIES The remedies given to the parties in this Agreement shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this Agreement. SECTION 30. WAIVER OF BREACH The waiver by City of any breach by Coca-Cola of any of the provisions of this Agreement, irrespective of the length of time for which such failure continues; shall not 19 agree/Coca-3/j mf/j n/01/2 8/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola constitute a waiver of such breach or a waiver of any subsequent -breach -by Coca -Cola -either of the same or another provision of this Agreement. SECTION 31. FORCE MAJEURE -UNAVOIDABLE DELAYS - .....Should.the.performance..of;any.-act required by. this,Agreement..to be performed.by-either - -_ _- City or Coca-Cola be prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause except financial inability not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay and performance of the act during the period of delay will be excused. Provided, however, that nothing contained In this Section shall excuse the prompt payment of the annual fee by Coca - ,Cola as required by this Agreement or the performance of any act rendered difficult solely because of the financial condition of the party, City or Coca-Cola, required to perform the act. SECTION 32. TAXES Any federal, state or local taxes levied upon this Agreement, the transaction, the signage, or vending machines, lockers, Comfort Zones and other equipment installed and/or operated pursuant to this Agreement shall be borne by Coca-Cola. These taxes shall include, but not be Iimited to, sales taxes and property taxes. SECTION 33. SECURITY DEPOSIT Upon execution hereof, Coca-Cola shall pay and maintain at all times, a security deposit with City in a sum of not less than Five Thousand Dollars ($5,000) to guarantee all of Coca- Cola's obligations and duties under the Agreement including, but not limited to, the repair and maintenance of the vending machines, signs, lockers, Comfort Zones and other equipment installed and/or operated pursuant to this Agreement, and, at termination of this Agreement, the removal of all vending machines, signs and other equipment. Such deposit shall be in the form 20 agree/Coca-3/j mf/j n/01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola of cash or check. Except with respect to the removal of all vending machines;. signs and -other equipment at the termination of this Agreement, City shall give Coca-Cola ninety (90) days written notice of its intent to use all or part of the security deposit. If Coca-Cola fails to make the requested change(s) within ithi s -ninety (90) period;-City•shall have the right to use°the-deposit, - after which Coca-Cola must replenish the deposit within thirty (30) days after City's service of notice of the amount spent by City. Within one hundred twenty (120) days after the termination of this Agreement, City shall return the remaining amount of the deposit without interest to Coca-Cola. SECTION 34. NOTICE Any written notice, given under the terms of this Agreement, shall be either delivered personally or mailed, certified mail, postage prepaid, addressed to the party concerned, as follows: CITY OF HUNTINGTON BEACH: Don Schulte President Schulte Sports Enterprises 215 '/4 Main Street Huntington Beach, CA 92648 With a copy to: Ron Hagan Director of Community Services City of Huntington Beach 2000 Main, Street, P.O. Box 190 Huntington Beach, CA 92648 SECTION 35. ATTORNEY'S FEES COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA: Coca-Cola Bottling Co. of Southern Calif. Attention: General Manager 1334 Central Avenue Los Angeles, CA 90021 In the event suit is brought by either party to enforce the terms and provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees. 21 agreelCoca-3/jmf/jn/01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola SECTION 36. HOLDOVER Should Coca-Cola hold over and continue to leave its vending machines, signs or other equipment installed and/or operated pursuant to this Agreement after expiration of the term of this Agreement or any extension thereof,-Coca-Gola's continued -occupancy -shall-be: treated- as. a -month=- ---- T....- to-month tenancy subject to all the terms and conditions of this Agreement. SECTION 37. CONTROLUNG LAW AND VENUE This Agreement shall be deemed to be made in, and the rights and liabilities of the parties, and the interpretation and constriction of this Agreement, determined in accordance with the laws of the State of California. Any controversy arising out of or under this Agreement, if litigated, shall be adjudicated in a court of competent jurisdiction in Orange County, California. SECTION 38. SL-CTION TITLES The section titles in this Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope of intent of this Agreement or in any way affect this Agreement. SECTION 39. TIME OF ESSENCE Time is of the essence with respect to all provisions.of•this Agreement. in which a -definite time for performance is specified including, but not limited to, the annual payments by Coca-Cola and the expiration of this Agreement. SECTION 40. SURVIVAL OF INDEMNITIES Termination of this Agreement shall not affect the right of City to enforce any and all indemnities given or made by Coca-Cola under this Agreement, nor shall it affect any provision of this Agreement that expressly states that its shall survive termination thereof. 22 agree/Coca-3/jinf/in/01 /28/99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola SECTION 41. NON -LIABILITY OF CITY OFFICIAL.- EMPLOYEES -OR -AGENTS No elective or appointed City or City affiliated board, commission or member thereof, or officer, official, employee or agent of City shall be personally liable to Coca-Cola; its successors .:and assigns, in the event of any.default- or;=breach;by.City;under-..this:Agreement-or:for-any,amountr' -- - -- ' .which may become due to Coca-Cola, its- successors -and -assigns; under -this Agreement or for any - obligation of City under this Agreement. SECTIO\ 42. AGREEMENT IN WRITING This Agreement contains and embraces the entire agreement between the parties hereto and neither it nor any part of it may be changed, altered, modified, limited or extended orally or by any agreement between the parties unless such agreement be expressed in writing. signed and acknowledged by City and Coca-Cola, or their successors in interest. SECTION 43. PARTIAL INVALIDITY Should any provision of this Agreement be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect unimpaired by the holding, so long as the reasonable expectations of the parties hereto are not materially impaired. SECTION 44. AGREEMENT IN COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same document. SIGNATURES ON NEXT PAGE 23 agreeXoca-3ljmVjn/01 /2$!99 Strategic Alliance Agreement between Huntington Beach and Coca-Cola parties. SECTION 45. ENTIRETY The foregoing, and Exhibit "A" attached hereto, set forth the entire Agreement between the IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first above written. COCA -COLA BOTTLING COMPANY OF SOUTH ALIT RNIA, a Calif 'a Corp a i B v: Terry Fitch ITS: Group Vice President/General Manager AND By: orris Owens ITS: Division Chief Financial Officer/ Director of Finance REVIEWED AND APPROVED: r2-?�. 2--z I, - CityWaministrator CITY OF HUNTINGTON BEACH, a municipal corporation of the State of Cali foram Mayor ATTEST - City Clerk icw,� APPROVED AS TO FORM: i y� City Attorney &IT -TAT D A ROVED: ���'� of SZXmmunity Services 24 agree1Coca-31jmflj n/01128199 EXHIBIT "A" PARK VENDING LOCATIONS PARK NAME ADDRESS # VM'S VM LOCATION Huntington Central Park Goldenwest & Talbert 18 3 at each rest room Worthy Community Park 17th & Main 3 racquetball courts Oak View Community Park 17261 Oak 3 outside center Murdy Community Park 700 Norma 3 outside center Edison Community Park 21377 Magnolia 3 outside center Lake Park 1 1 th & Lake 2 clubhouse Senior Outreach 17th & Orange 2 inside center Wardlow Park 9191 Pioneer 2 restroom/snack bar LeBard Park 20451 Craimer 2 clubhouse/snack bar Harbour View Park/School 4343 Pickwick 2 outside clubhouse Marina Park/High School 15871 Springdale 3 rest room Terry Park Huntington & Taylor 2 clubhouse Seabrid a Beach/Park 3222 Countess 2 rest room Greer Park/Lake McFadden & Goldenwest 2 concessions Carr Park/Lake Springdale & Heil 2 some infrastructure Lake View Park/School 17451 Zeider 2 bldg across street French Park Venture & Harbour Channel 2 Davenport Park/Beach/Launch Huntington Harbour 2 Humboldt Paris/Beach Huntington Harbour 2 Huntington Harbour Yacht Club 3821 Warner 2 Downtown Park Main St. adjacent to Lon board 3 Newland House Museum/Barn 19820 Beach 3 Turnout/l It & PCH Pacific Coast Hi hwa /l s1 3 Turnout/1st & PCH Pacific Coast H /6th 3 EXHIBIT "A" BEACH VENDING LOCATIONS VENDING SITE LOCATION # VM'S Pier Rest room 3 Rest room # 1 below pier 3 Rest room #2 below tower zero 2 Rest room #3 north of Huntington Street 3 Rest room #4 south of Huntington Street 3 Rest room #5 north of Beach Blvd 3 Rest room #6 at Beach Blvd 3 Moorhouse Headquarters 103 Pacific Coast Highway 2 Future comfort stations 7-9 locations along strand 14 Future beach lockers 3-4 locations along strand 6 EXHIBIT "A" CITY FACILITIES VENDING FACILITY NAME ADDRESS # VM'S Huntington Beach Art Center 538 Main 2 Huntington Central Park Equestrian Center 18381 Goldenwest 2 City Gym and Pool 16th & Palm 4 Huntington Central Library & Resources Center 7111 Talbert 2 Civic Center Basement 2000 Main 2 Rodgers Senior's Center 1706 Orange 1 Police Administration Bldg 2000 Main Street 2 Fire Station 16221 Gothard & Murd 1 Fire Station 18311 Gothard 1 Fire Station 21441 Magnolia 1 Fire Station 3831 Warner 1 Fire Station 530 Lake 1 Community Services Department 2000 Main 2 Public Works Corporate Yard 17371 Gothard 4 Park,Tree & Landscape Yard 17581 Gothard 1 Water Warehouse 19051 Huntington 4 Main Promenade Parking Structure 200 Main 6 TOTAL VM=Vending Machine 152 02/04/90 THU 1.1:05 FAX IM 002 7 V� 4Ull fl 3 -T 7 AD It7Wip. 3 trG 02,M3199 h,01Rd4E_,9 7-D THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION J&H MARSH & MCLENNAN, INC. ONLY AND CONFERS NO RIGHITZ UPON THE CERTIFICATE 191 P EAC HTREE STREET, IN F_ 5 U I T E U 00 2/f) 4011?f if /& HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ATLANTA, GEORGIA 30333-1762 ALTER THE. COVERAGE AFFORDED By THE POUCIM BELOW. xt We a /0' TE' NO. (404) 586-OM -COMPANIES AFFORDINO COVERAGE FAX NO. A Y'-'- (404)SM8208 CC.*J PAW Coe'qeolt_ dq??%hg ap. A Continentel Casualty MUFtffp dr- compxvy BCI CCOC of Los Angeles• a TransporWon Insurance Company '- 334 South Central Aver ue Los Angeles, CA 90021 campmy C National Union Fire Insurance Compary COMPANV D MLY "'MiNi 7 H 10 IS TO CERTIFY THAT THEE POLICII F6 OF INSURANCE LISTED BELOW HAVE 13 11124 1 Be U ED TO THE INSURED NAMED ABOVE FOP THE POLICY PERIOD Pit INDICATED, NOTWITHSTANDING ANY REQUIFEMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CSFMACATE MAY BE i&9LIF0 OR MAY PERTAIN, THE INSURANCE APPORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THIII TERMS, EXCLUSIONS AND CONDIT110145 OF OUCH POLICIES. LIMITS SWMN MAY HAVE SEZIN REDVC6D BY PAID CLAWa p F Co rM9 Of INSURANCE POI JIMIUMBRIII POLICY OFIFIECTIVII[i . POUCT UPIRATION RATE (MWOWM OATS (MMMDNV) Lfmffa GINSPAL LI1A=Tv GL166805081 11/01197 I 11/01100 001IN16MLAWFOUA-E $ 2,000,000 A X COYIMEMAL OENSUL uAmUTY II CLAW YADe 7x awjR NOTE: ISO FORMPEF60KAL Q0W.M8;G&-0%=Ar.MR'9PA1ff PROQU-M-COW/CPAGGI 8 5, go-. M a & AN W%IAVrf 5 110W.000 #C00001 low i EACH OCCLIFIFfiNCP 8 i.000.000 FRED MAQE(Am I we Mro) 5 1,000.000 MED EXP Kryy one anson 1 9' 1,000 13 YEAR POLICY AUTOMOMIJI LIAWLITY MOINWaiNG14EUMIT S M ANN ALIM Z.PPROVEI�Ag TO — 1 AL-.QMM AUT09 GAIL ITU'110N.,: City Attorne� 180 IURY 6CH=-Uk_E0AUT019 -By'4 Pepat ..Cltl� Att=ez HVW AUTOB CP=N Ly WJ613y NON-ONNSDAUTC9 I�/ P. imider.0 r -•— PROPEFffV DAMAGS is GARAGELIABILITY 1 i lA'UTOONLY-I&AACd11NNT 'S ANY AZO j OTrIIM TMAN A= T EACH ACCIDENT. $ C I E=M LiAmnr BE357-11 19 11;01/97 111101 M0 8ACI4=UFIRff_Wj[ 3 2,000,000 F�xX UIVIBR946ARM AWF99A-M S 2,000,000 CTVER Trim UNISFIELLA K~ 'a YEAR POLICY A WORKERS COMPENSATION AND WC 16680%" (AOS) 11/01197 11/01100 x I STAnnrw LI.YITS INKOYIERS? UABILrFV WC 166805027 (WI) i11/01/97 1110140 EACHA=IDGIN7 is !' 1,000.000 PARTNUMEX!CU"VE ix INCL pl DWRASE - POUCY UMIT 0 1,000,000 GISEASS-MMEMPLCYff 8 1.00,000 OFF0MARE; e=_ 13 YEAR POLICY STATUTORY D(CESS $1 MM SIR GETXHUCRESS A WORKEFtS COMP W. 128601361 111101107 1 11IJ01100 FOR SELF -INSURED STA MS. I .1 i A7_QA,0A.LAMA,MD. *3 YEAR POLICY Ii MN.M).WV,0H2OR,RIVVA 0MICAIPTION OF DPARA?toNWLGCATiOMWfttUCLB&4PFCIAL ITEM (LIAUrs MAY N&U8JFCTTO 0091SIT10101 City of Nwritinaton Beach, its agents, officers, emptoyeds and volunteers are Included as atid1tionaL insureds (if requiped by contract) on the above ftmrsi. Liability PeAcy, but only with respect to liability arisirm out of the Operations of the namad Insured, WWIr*004f , tij7Ti 1W-4'W City of Huntington Beach WOULD ANY OF Tkq AA0W 003CRIUM POLICINIS 02 CMCKWW 89FOAQ THF Attn: Ron Hagan g&IftATjoN DATff TijfflEoF, TmS 18sum COMPANY WILL RMWAVOR T* MAIL 2000 Main Street 30 oms warrysm wonce TO 'rile CEATIRCATII HOLDER NAMED T01HO LEFT. Huntington Beach, CA 92648 BUY PAURR TO MAIL SUCH NOTICE SHALL IMPOSE NO OftaKnOm M LIAINUM ANY 1010 UPON THE. COMPUY, ITS 44214-M OA REPIRMNYAMVEL TWO RED REPRUENTATWE wa- ,� BACK UP AVAILABLE IN CITY CLERK'S OFFICE STRATEGIC ALLIANCE AND LONG TERM PARTNERSHIP AGREEMENT WITH COCA -COLA BOTTLING COMPANY OF SOUTHERN CALIFORNIA BACKUP MATERIAL Comparison COKE VS PEPSI PROPOSAL COMPARISON VENDING PANELS ON VENDING BUS SHELTERS PEPSICity pays for cement pads & electric EST $70,000 t50 sites requested COKE City pays for electric EST $30,000 150 sites requested Standard Pepsi fronts Custom fronts that say ► elcome to HB 80 Sites requested 25 Sites requested TICKETS TO EVENTS None 20 to each event COKE VS PEPSI PROPOSAL COMPARISON MARKETING INKIND [TEACH ACCESS SIGNAGE L Er S1 One cube per year 200 / 12 OZ. CASES PER 1_ Pepsi mobile vending YEAR during summcr Permanent on: 2. Sampling privileges any Lifeguard Towers, Lifeguard vehicles, beach trash cans, product any time with notice pier banners, and vending machines Use of City logo's COKEWill give vending 1. Friends of Parks 1. Coke mobile vending Permanent on: commission to city and program to include during summer Comfort stations, vending youth sports groups donations to park 2. Sampling privileges am- machines and other sites along the improvements product arty time with beach to be mutually agreed by both 2. Work place notice Coke and Citv promotions to include free tickets to Disneyland, Knott's, Ducks, Dodgers COKE VS PEPSI PROPOSAL COMPARISON EXCLUSIVE RIGHTS PEP SI Only Pepsi sold during all City Events. All concessions to convert to Pepsi upon expiration of current contracts. Pepsi deemed preferred soft drink for all future private development PUBLIC ART None LOCKER PROGRAM None COKEBest effort to sell only Coke at all Will donate funds for Public Art Four locker locations along the City Events. Best effort to get Mural programs concessions to convert to Coke at Ocean Strand with two vending machines at each location. end of current contracts. COKE VS PEPSI PROPOSAL COMPARISON PARKING PERMITS P r SI None required COKEReasonable amount per year to serve the access needs of the agreement CASH PAYMENTS $50,000 upon signing $50,000 when vending machines are installed $100,000 each year thereafter for 9 years Total cash = $1,000,000 for 10 years $300,000 upon signing $300,000 each year thereafter for 9 years Total cash = $3,000,000 for 10 years Coke Re.fr:: el Nuntingt� illlil .. I:n beach , ";J'sulf City. olifornia ri i M � M M i i i rd M maw i i M� Meeting Purpose ❑ To form a strategic alliance and long-term partnership with The City of Huntington Beach as a part of its Public Enterprise Program that... Unifies the interest of local public agencies with those of private enterprises Directly supports The City of Huntington Beach in achieving its goals and reinforces the City's aspiration to provide its residents and visitors with high quality products while improving and enhancing the quality of life Provides Coca-Cola with exclusive non-alcoholic beverage rights for promotional and sales access to all City recreational and public facilities and links the Coca-Cola brands to the Huntington Beach consumer while leveraging the marketing expertise and resources of the Coca-Cola system CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises � J111111111111111111 No= The Most Powerful Brand in the U.S..... And the World! #1 Among Consumers In The Landor image power survey shows Coca-Cola to be the most powerful brand worldwide as well as domestically. "When it comes to consumer purchasing decisions, perception is the first step to quality!" Source: Landor Associates' "Image Power Study" CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises a a a M a n a R A 2 A A a 2 a The World's Most Recognized Name The Most Powerful Brands Sony #2 Source: Landor Associated Image Power .Survey CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises 0 M 0 M a M a M M M i o MMM M M ■. M Having the right brands and flavors available... ❑ A clear understanding of Huntington Beach consumers is critical to select the brands that will please the broadest group of your residents and visitors Age Gender Ethnicity occasion ❑ Coca-Cola's "Beverage Portfolio" offers the optimum brand line-up, considering the Huntington Beach resident, visitor, and consumer. CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises a man 2 man ZMARMAN"Mom Your brand and flavor availability will be from a broad portfolio of brands, - tailored to your consumers tastes and lifestyles Target Category Brand Brand Consumer Positron Architecture All Consumer Segments Sugar Colas • Refreshment • Authenticity F • Emphasis on all Teens and Young Adults #1 • Sociability Primary: Adults 18-34 Diet Colas • Great Taste " f - .: Secondary: Adults 35-49 #1 • Refreshment r • Look/Feel Best k---:aR (also available Caffeine Free) (canoEne Frr3o Duel Coke R 1 ) Ages 12-29 Primary: Male Teens and Lemon -Lime #1 . Great Taste • Thirst -Quenching African -American (fastest growing •Cool Personality s Consumers U.S. brand) Primary: Males ages • Energizing 12-24 Citrus • Refreshment Secondary: Blue Collar (Fastest growing new CSD} . Rejuvenation Males CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises Brand Portfolio (cont.) Target Category Brand Brand Consumer Position Architecture Ages 12 - 25 #1 Spicy Cherry ' Alternative + Youth • Hip + • "Spicy" Primary: Males 16-18 Root Beer a Unique TIPR Secondary: Everyone in #2 - "Meal Appeal" Iron r bee rke (fastest growing Root Beer) • Bite Age 18-44 91 Cold Fill Tea • Smooth v Slight Male Skew • Refreshment 3?' o Simple • Genuine : Ages 18-35 #3 Citrus Drink .Citrus Latinos • Low Carbonation CONFIDENTIAL: prepared for City of Huntington Beach and Schulte Sports Enterprises a AS N i a a a n i =��� a� � Brand Portfolio (cont) Target Category Brand Brand Consumer Position Architecture Ages 8-18 Isotonic • Slammable • y Sports Active Males 42 * Carbohydrates r . , (fastest growing isotonic) a Cutting -Edge * Confidence Ages 25-49 Fruit Beverages * Premium Active, on -the -go #1 * "Good for you" — Ages 13-24 Fruit Drinks * Great -Tasting Variety Seekers * Unique Combinations * Vibrant Ages 15-29Energizing 9 Fastest growing • Refreshing Active Males U.S. Water * Youthful CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises Southern California Soft Drink Share CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises M ft M M M MWL MW M006 M� Genuine 20oz. Coca-Cola°.,. Bottle ❑ The 20oz Coca -go' �;o t e:, shape and feed,'o-,g ize by consumers be`-., 3th.e:V,.: - associate �t '=with : unlit . — easy to gril�pnd stMwiICY, , — resealable cip"elor greater- — made of PET p"lastiC.W.-I&I CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises with its unique d and preferred portability i eliminates breakage � Man RANNARMAMAMMMMM Equipment 0 tions i Coca-Cola has variety of equipment available to sell its products: 2O9r Marketing Machine 20oz Vending Machine 20@z POWERWE 208Z Fruitepia 12oi CanVending CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises aEMU R s M M i M i M M M M i i M Through our partnership we wish to achieve... ❑ Cateciory EXCI USM : Defined as the only company in its category associated with the City of Huntington Beach municipalities. Category will include all carbonated and non- carbonated,. non -alcoholic beverages defined as soft drinks, juices, juice drinks, teas, isotonic, and water ❑ Territor Exclusivit Geographic category exclusivity defined as all City properties controlled by The City of Huntington Beach and within the city limits of Huntington Beach including all of the following: city beaches, parks and recreational facilities, parking lots, and all other public and municipal facilities CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises a a w a E E M is M M= a Q a " = M M Partnership Opportunities ❑ Beach ❑ Parks and Recreation ❑ City Facilities ❑ City Events ❑ Bus Shelters ❑ Minimum 150 Vendors (150-180) CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises Beach Vending Opportunities d ❑ Restrooms: 3 vending machines at each of the 6 current restroom locations located along Huntington City beach ❑ Pier: 2 machines each at both the Lifeguard Tower and the restrooms ❑ Beach Headquarters: 1 outside and 1 inside for employees CONRIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises M-9--w-M 2 M & a Nunn nowwMAN� Beach Concessions �- ❑ The City of Huntington Beach shall use its best efforts to align exclusivity with concessions currently serving competitive products and currently under agreement leases with the City upon lease renewal L.j The City of Huntington Beach shall use its best efforts to ensure that those concessions currently serving Coca-Cola products remain exclusive upon their lease renewal CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises man 2RK.RRMMMM"MftMM� Beach Concessions ❑ Currently Coca-Cola > Dwight's > Vick's > Jack's ❑ Currently Pepsi > Zack's (contract up in 1999) >Zack's 2 (contract up in 1999) ❑ Unknown due to current vacancy > Beach Hut (contract up in 2000) > Pier Plaza CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises a m a a a m m M i i i m m" m lm = m im Beach Buggy The City of Huntington Beach will grant Coca-Cola full access to operate a proprietary Beach Buggy on Huntington City Beach to offer Coca-Cola products to patrons on the sand, as a service providing the general public an enhanced beach going experience ❑ Provide the Coca-Cola Beach Buggy to the Junior Lifeguards.as an ongoing revenue generating opportunity for their organization CONFtOENTiAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises a A A" M M M M M M M= as = M M Locker Program u In an effort to improve convenience for beach visitors, Coca-Cola will develop and fund beach lockers ❑ Coca-Cola will consult with the City of Huntington Beach on the design of the lockers u Coca-Cola will provide and install approximately 4 of these lockers at mutually agreed upon `strand' locations r.j Approximately 2 vending machines to be installed at each locker area CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises man Baas a Sam S_ 11-At-R.Rma Future Comfort Zones 1" ❑ As stated in the offer, The City of Huntington Beach will construct 7 to 9 "Comfort Zones" along the beach front ❑ Coca-Cola offers their assistance and expertise in the design of a mutually beneficial concept to improve the beach experience ❑ Each Comfort Zone would include mutually agreed upon Coca-Cola signage and would also include a minimum of 2 Coca-Cola vending machines CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte; Sports Enterprises ■ Surf 0 [Jt:[IUIA M NUT 11:51. UI ri nlaf--P-mp-nt-q 0 0 ,e-A "MMIZ4 R ztjj a s a a z a & a a la-m a a -a -a Q M = = Parks and Recreation Concessions The City of Huntington Beach shall use its best efforts to align exclusivity with concessions currently serving competitive products and currently under agreement leases with the City upon lease renewal ❑ The City of Huntington Beach shall use its best efforts to ensure that those concessions currently serving Coca-Cola products remain. exclusive upon their lease renewal ❑ Concessions included cover: Central Park (2),. Wardlow Park, LeBard Park, Greer Park, and Marina High School Park CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises 41/ Friends of the Park ❑ Coca-Cola is very active in and fully supports the growth and positive development of youth in our communities ❑ Coca-Cola proposes to be instrumental in the beautification of Huntington Beach City Parks through the involvement of local area retailers where Coca-Cola products are sold Li This cooperative effort will involve a cents per case donation by Coca-Cola to fund these activities u The proposed beautification could include, but is not limited to: repaint/replace backboards on basketball courts y provide `murals' specific to activities enjoyed at individual parks to add color and animation - repaint/upgrade park benches CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises 2 a a a X a a a Is m a a a " m m m mlllIllllllllliI � City Facilities ❑ As a Marketing Partner, Coca-Cola shall receive full access for exclusive beverage availability at the following city facilities: Art Center Central Park Equestrian Center �- Police Stations >- Fire Stations Y Libraries Parking Lots Maintenance Centers )1- at#ices See appendix A for detailed listing of City facilities requested CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises sun a anfix MMMMMMMMMMM "Refreshing" City Employees ❑ Coca-Cola will run vending promotions for city employees in a effort to enhance the work place environment. Winners can receive tickets to: a...�d�isneyland. CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises INSIZIANZAAR&K a man M "Refreshing" City Employees ❑ Coca-Cola will pay commissions on any/all vending at specific Huntington Beach City facilities and donate those proceeds to an organization designated by the City > ie: Boys and Girls Club Junior Lifeguards ❑ The City Facilities can include Police Stations, Fire Stations, City Offices and Maintenance Yards ^ %Pr-ir- r_vWriAI • nronnror{ tnr (its ni Huntington Beach and Schulte Sports Enterprises -f a a" a a i a i a a a= m m s m City Special Events " "i- 94th Annual Huntington Reach r.i 4th of July Parade ❑ As a Marketing Partner, Coca-Cola is interested in participating creatively in all City and Pier Plaza Amphitheater events through actual beverage sales, sampling activities, and event marketing Li Should there be an opportunity for a non-alcoholic beverage company to sponsor a special event within city limits, Coca-Cola should be offered First Right of Refusal ❑ Coca-Cola requests the rights to cover any and all events with Coca-Cola signage and/or banners at mutually agreed upon locations As a partner, Coca-Cola will be mentioned in all news. releases regarding these events which are sent to the press ❑ Coca-Cola asks the City of Huntington Beach to provide 20 partnership tickets for access to all City held events CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises Oman an" i M i i i i M i" i� see Sampling Opportunities Surf G-Py ❑ As a Marketing Partner, Coca-Cola requests the exclusive right to sample our non-alcoholic beverage portfolio within City limits ❑ Coca-Cola will provide the City in written notification, .of intent'to sample products at a specified location with a minimum 10 days notice ❑ The City shall provide Coca-Cola an annual permit to be, utilized for sampling activities within City Limits L.' .R t CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises a a A to A a U s s A i a i Macau Signage/Advertising Program Surf qtV ❑ As a marketing partner, Coca-Cola is interested in working with the City of Huntington Beach to develop a mutually agreed upon signage program ❑ Coca-Cola's efforts will be environmentally sensitive, tastefully designed, and promote an enhanced quality of life ❑ Coca-Cola will require multiple signage opportunities at strategic locations along the beachfront as well as municipalities that are controlled by the city CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises 222 a am claaaaa-M - a a a Potential Signage/Advertising • Opportunities Include... ❑ Beach: r Lifeguard Towers: Tide, Time, Temperature Boards Benches Y Volleyball nets Trash barrels Murals T Kiosk Comfort Zones ❑ Pier: Banners ❑ Parking Lots: y Murals Signs (-.01NIFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises ❑ Parks & Recreation: ),- Murals r Benches Trash Barrels Basketball backboards ❑ Special Events/ Promotions ❑ other: Y City maps/brochures City letterhead. Surf I I z INA a a a as-M-A M I[—&. a a a Vendor Fronts ❑ In appreciation for being chosen by the City of Huntington Beach as a Marketing Partner, Coca- Cola is willing to invest in the development of a mutually agreed upon vendor front specific to the City rONFlDEN7tAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises a 222 222122AM a�-i-s�na Use of City Logo's/Marks ❑ As a Marketing Partner, Coca-Cola requests exclusive category rights to use the official Huntington Beach Pier Plaza logo, Huntington Beach city logo, and the "Surf City" trademark ❑ Coca-Cola will consult with the City of Huntington Beach prior to the use of any City logo's n,ii nei Frbi dto gpOrj% Fr,i@fpCISPS M a R a a a a a a a A M " M M = M M Electrical Issues ❑ As a Marketing Partner, Coca-Cola requests that the City of Huntington Beach provide us with assistance in the cost of electrical installation for Coca-Cola trademarked equipment at any and all locations CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises a M R a a a a a a a a a a a a a■Q JL Other Items of Interesil Surf Gt-y► ❑ Parking Permits y The City of Huntington Beach shall provide Coca- Cola with a reasonable amount of city permits and passes for all corporate vehicles and portable displays to be determined by the extent of day-to- day service and promotional activities ❑ Future Properties The City of Huntington Beach agrees that any newly acquired or constructed municipal properties shall fall in line with the category and territory exclusivity .requirements (Le. Future Sports Complex) CONFIDENTIAL- Prepared for City of Huntington Beach and Schulte Sports Enterprises Customer Service- Commitment ❑ The Coca-Cola Bottling Company of Southern California has the appropriate distribution . network that will allow us to provide excellent beverage service to any of the Huntington Beach facilities ❑ In the spirit of partnership, Coca-Cola will be dedicating a service team for the City of Huntington Beach that will consist of: �- Local Key Account Managers to coordinate all opportunities Field Technical Service with Toll Free Number �- 6 days per week delivery service Strand accessible vehicles for delivery and technical service rnmrinPKITI r • Prpnararf for city of Hunfirtaton Reaeh ,and Sch ilfe Sports Fnterprises M Y HF i his an MMM it m hw m m m � Financial Commitment Program Elements: ❑ $3,000,000 partnership package over 10 year term ❑ $300,000 payable annually at the beginning of each contract year a Availability of 20 ounce contour as preferred and primary package ❑ Agreement to 12 month annual soft drink marketing calendars to promote sale of Coca- Cola beverages ❑ Purchasing of all bottle/can/fountain products through Southern California Coca-Cola Bottling Company CONFIDENTIAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises 2M22zRRMRM_RAU__ -A s s a w Next Steps ❑ Partner with Coca-Cola as your exclusive non-alcoholic beverage provider for the next 10 years ❑ Secure approval from City Council ❑ City-wide activation of Coca-Cola C[ r-% r r „ r 1 ■■ ■ rI% r CONFIDENTfAL: Prepared for City of Huntington Beach and Schulte Sports Enterprises Pepsi* INSTRUCTIONS Please answer the following questions completely as possible. You may include samples of pictures or drawings to illustrate how you are proposing to implement your proposed benefits. Submit all your completed material to: Don Schulte City Agent for Public Enterprise 215 % Main St. Huntington Beach, CA 92648-5162 For more information you may call Schulte Sports Enterprises at (714) 374-3330 1. What is the company name that will actually appear on the public enterprise agreement? ➢ Pepsi Bottling Group — Buena Park 2. Who will sign the agreement and what is their title and authority to sign? ➢ Nick Van Hoogmoed — Market Unit General Manager 3. Name, address and phone number of the contact person to be named in the agreement: ➢ 6261 Caballero Blvd Buena Park, CA 90620 714-522-9615 4. Describe the language you wish to have included in the proposed agreement regarding territory exclusivity: ➢ Territory exclusivity will include only Pepsi -Cola products to be served and/or sold within the city limits (zip codes, boundaries, streets) of Huntington Beach. 5. Describe the language you wish to include in the proposed agreement for category exclusivity: ➢ Only Pepsi -Cola products will be served/sold at all city events, buildings, parks, recreational facilities, hotels, and business complexes. Only alcohol, hot brewed coffee, and milk will be allowed. 6. What access to city logo and marks do you wish to have and how would you propose to use them? ➢ Cube inserts ➢ Banners jar city events Ci#y of Huntin - Beach 0 HUNTINGTON BEACH L960, Pepsi -Cola • City of Huntington Beach MUrTIVGiOV 814[ 11 Table of Contents Sub'ect Pa e Objectives 2 Brand Strength 3 Vending 6 Marketing / Promotions 13 Sponsorship 17 Summary and Next Steps 21 1 0 0 • City of Huntington Beach rrU�Tr�Gink BUC:rr Objectives of Proposal To provide The City of Huntington Beach a source of revenue to help sponsor P.ier Plaza, and a source of direct marketing to establish Huntington Beach as a Major Southern California attraction: *Marketing promotions to build traffic and create awareness and excitement. . Sponsorship dollars toward The City's Pier Plaza attraction . A full line-up of Pepsi brand beverages that will appeal to the visitors and residents of Huntington Beach. . Vending equipment to satisfy consumers, residents and employees. 2 die HUNFLNGION SEA( PI City of'Hunt ington Beach Pepsi -Gala Brand Sxrength City. of Huntington Beach 1' HUYTItiG7Uti B[A(:11 The Right Variety of Beverages and Packages which fit the image of Huntington Beach. Pepsi -Cola Brand Strength . #1 Beverage Brand with Teens. . #1 Cola in Convenience Store Sales. ONE calorie Great Tasting Cola. Offi� . No Diet Aftertaste. . Better For You, Low Sodium. Q4• • Positioned on Taste and Lifestyle Imagery. . Appeals to Loyal Diet Cola Drinkers. 51. . #1 Selling Single Serve Brand in Convenience Stores. . Fastest Growing CSD of the `90s. Pisa 1fM . Loyal Consumer Transitioning Lifestyles Rome . The Same High Energy Quality without ethe Calories . #2 Orange Drink in the Country. . A contemporary Image Promotes Fun in a Fruit Based Beverage. . Josta's Wild Image Injects a New Dimension into the Soft Drink Category. . Appeals to Fun -Loving People of all Ages. • A Fun Brand Image That is Just a Little "Out There" as "The Foam Goes Straight To Your Brain" 0 0 0 City of Huntington Beach HUNT[KG IpY B4ACk1 Pepsi's New Age Brands are Second to None! Pepsi -Cola Brand Strength . Bottled Water is the #1 Alternative Beverage and the Fastest Growing. . Promises Consistent, Great Taste. . First Nationally Distributed Bottled Water. . Purest Water on the Market. r . Ocean Spray is #1 in Canned and Bottled Juices and Juice Drinks across the U.S. . #1 Tea Trademark, Outselling Nearest Competitor by 50%. . Refreshing Iced Tea with a Drinkability and a Taste only Lipton can Deliver. Energetic, Cool, Active Beverage. 0. .Satisfies with Carbs, Fluids, and Great Taste. .4 Great Flavors. - .91% Market Share in the U.S. . Strong Brand Recognition. A City of Huntington Beach liu.\'nVCToti BEAL II Pepsi -Cola Vending • • f.,.. City of Huntington Beech WHUNIING10N Vending Equipment • Pepsi -Cola offers vending machines to meet your needs: Pepsi Total Variety Vendors - designed to vend 20oz. plastic bottles. o Pepsi Can Vendors - designed to vend 12oz. cans. o Pepsi Vending machines are offered to The City of Huntington Beach on loan. a Pepsi -Cola employees will fill and maintain each vending machine at least once per week. • Pepsi -Cola employees, who are trained and skilled technicians, will provide you. with dependable service within 24 hours. • Unlimited, free service is provided whenever a repair is required. Call 1-800-LA-PEPSI for service. (All machines will be identified with a refund policy which will be handled directly by Pepsi -Cola). • The City of Huntington Beach will supply all electrical outlets, electrical power, and the appropriate cement slabs for installation of 7 all vending machines. r i -- : -� City of Huntington Beach _. HU.11Ti\4101 BFA[H Vending Equipment Completed site surveys address the following equipment placements: • Total Variety Vendor o (66) 20oz. Pepsi Placements • Aquafina Vendor o (52) 20oz. Aquafina/All Sport Placements • Can Vendor o (29) Can Placements Totals 1,47 vending machines 0 0 ! .jCit - of Huntington Beach 1J 1ILNUNG1(P4 BkACli Su mpr of si-Cola. Marke!tgg gqu ent Investment alft . .. _.. * Vurrenr survevea sires - iv 118 20oz. TVV 72" / 79" Vendors $225,000 29 12oz. Can 72" / 79" Vendors $ 10,000 100 Steel Cages 72" / 79" (custom painted w/ H.B. logos) $ 55,000 Current Investment of $290,000 9 10 EV ® We are FULL-TIME 1 Security Cage WBuilders! , `r* . �•, �F p r�x: .r .g, r ..� 3 r. A sti iu By FLORES ORNAMENTAL SECURITY CAGES NEW! VENDGUARD introduces the first and only steel security cage available for round front vending machines! This newest addition to our investment pro- tecting prod- ucts offers the same fea- tures avail- able in our existing line of rectan- gular soda and candy cages. VENDGUARD security cages Easy customer access! are the result of over five years' rugged field testing. Except for our round front model, all cages are available as both standard and collapsible designs. They are lightweight (some are only 250 Ibs) and easy to install or move. They will completely enclose and protect any soda or candy vending machine in use today. Only AN11?GUARD covers the whole chine - even the roof - with a 1.5" x 1 S' square frame, tough 1" x 1" steel corner angles, 16 gauge side Rugged hinged doors secure vending machine, yet allow easy access for service. VENDGUARD security cages are sold direct by the manufacturer (no middleman or retailer mark- ups!) Shipping available. to1WAlp* OTested , 5 Years 1 by Major , Direct Today! and top panel sheet metal and re- inforced 13 gauge expanded metal doors for product visibility (only the rear is not enclosed). Customer ac- cess is easy for both selections or returns. The in- terior locks are protected in a hard plate steel box and additional plating on the lower door shields the coin return or bill validation mechanisms. Extra plat- ing also protects the machine's se- Security that looks good! lection side. The expanded metal doors are also reinforced against kicking. VENDGUARD security cages come with concrete fasteners and a sheet metal skin is available for units that are not anchored. They are prime -coated and painted durable gloss black. Pro- tect your vending machine invest- ments, including your newest round front machines, with VENDGUARD for a fraction of the machines' replacement costs. Fits all sizes of round vending machines that are currently available. 1VRo D FROM M�Ov FLORES ORNAMENTAL Welded 'Jofntsl ground and 11 `vBottlers os 1552 Case Street, Orange, CA �+* # (714) 635,3066 • Fax (714) 9984 756 ftmsw s s City of Huntington Beech J1 HUVilrl.10+l $[A01 Additional Mending Needs • Pepsi -Cola is requesting an additic from the City of Huntington Beach. of 150 individual vending sights ti machine placements. Proposed Sites nal 80 individual vending sites This will result in a grand total ►taling more than 225 vending . Bus Shelters - (200 possible sites). . All parking structures owned by the city. . Placements at Pier Plaza (i.e.: next to versa -teller). . Placements along Beach Boardwalk (below pier). . Proposed comfort zones along beach front . Estimate cost (to the city) of electrical needs/cement slabs = $70,000. 11 City of Huntington Beach L _ nuvrwcTD% Hurl+ Summary of Fie si-RCola Marketing Qquip ent In vest men t * Current serve 118 20oz. TVV sites - 70 72" / 79" Vendors 29 12oz. Can 72" / 79" Vendors 100 Steel Cages 72"/79" (custom painted w/ H.B. logos) Current Investment of $290,000 * Additional Sites Needed - 80 $2259000 $ 10,000 $ 55,000 Additional equipment 80-100 20oz. T.V.V $1909000 Steel cages $ 44,000 Additional Investment of $234,000 •Total sites needed = 150 *Total equipment needed = 225-250 machines TOTAL INVESTMENT OF $5243000 12 • it City, of Huntington Beach 4�' '� Pepsi -Cola lftrkefing /Promotions • i of Huntington BeachHUNUNGTON ZEA[11 C t Marketing Programs • One cube insert promotion each year to create awareness and drive traffic to Huntington Beach. o Cube Insert promotion = minimum distribution of 200,000 cases, with opportunity to tie into a major Southern California retailer. • Marketing value - $200,000 per year . o Cubes distributed, in Orange County, San Diego, & Los Angeles County, promoting Pier Plaza major events. o Timing-TBD Total Value over 10 years $2,000,000 • Noted partners who promote annually via cube inserts: o Sea World o Universal Studios o Club Disney o Vons 0 Anaheim Anqels 14 i i • City of Huntington Beach r HUk iIY(,TOk ifAfll Major Southern California Pepsi -Cola Partners Sea World L.A. Lakers Universal Studios L.A. Kings Wild Rivers Disney Ice Tinsletown Studios Hard Rock Cafe Medieval Times Planet Hollywood Wild Bills Dukes -Surf City Van's Skate Park A.V.P. Tour Edison Field X-Games Experience Anaheim Angels Huntington Beach U.S.Triple Crown of Skateboarding 15 �J City of Huntin 9 tors Beach w_ l UN T1.V G fUN .car-„ Sponsored Events • The following is a list of Huntington Beach Special Events which Pepsi- Cola has proudly sponsored over the years: o Major Sponsor of The Rebuilding of The H.B. Pier o Pier Fest o Fourth of July Parade o Duck-A-Thon o Taste of Huntington Beach o H.B. (Police Department) - Baker to Vegas Run o H.B. Rodeo o Karate on The Beach o Hoop -It -Up o Huntington Beach U.S. o H.B. Little Leagues Triple Crown of Skateboarding 16 • i f s?`:_,� City of Huntington Beach 11 Tt.%CjUN9EACII Pepsi -Cola �pernsvrship • . � City of Huntington Beach. �. HN`TIVGTOr. TEACH Sponsorship . Pepsi -Cola is offering The City of Huntington Beach an annual sponsorship fee. Sponsorship Fee distributed as follows: o Year 1: $ 50,000 paid up front, upon signing contract, an additional $50,000 paid when all machines are installed. o Years 2-10: $100,000, paid annually, at the start of each contract year Total Value over 10 years $1,90005000 . Pepsi -Cola will offer The City of Huntington Beach 200 free cases of 12oz. cans per year for special events. All other product needed for City events will need to be purchased from and delivered directly by Pepsi -Cola Bottling Group of Buena Park, 18 • City of Huntington Beach j ++unrivGlon• eiani !Rights & Entitlements • Sampling privileges on beach (year round). o Exclusive rights for Pepsi -Cola to sample any product, any time, with designated sampling vehicle. (Category Exclusive) • Permanent signage on backs of all life guard stations, on all city and state beaches. • Permanent signage on sides of life guard vehicles. • Permanent signage on trash cans (wraps), on city & state beaches. • Pepsi -Cola logo to be included on all promotional banners for city operated events. • Only Pepsi -Cola products will be served/sold during all city events. • All venues, currently under contract, to be converted to selling only Pepsi -Cola products upon expiration. (i.e.: Golf Courses, Restaurants, Beach Concession Stands) City of Huntington Beach will provide a list of all venues owned by the city and currently under contract. • Additional new venues to be built will serve only Pepsi products. ( Hilton Business Complex, Sports Complex, Convention Center) • Vending machines on Pier Plaza next to Versatel. • All restaurants run by the City will serve only Pepsi -Cola products. • Presence on Pier Plaza recognizing Pepsi -Cola as a major sponsor. • The City of Huntington Beach will deem Pepsi -Cola the "Preferred Soft Drink Supplier" to all restaurants, hotels, and other venues which open in the City of Huntington Beach. 20 0 0 • ,:: ::� City of Hunt n ton Beach "� 9 Summary of Next Steps • City of Huntington Beach HU'NTINGTON 61 A(;rl Next Sups • Marketing: Pepsi -Coal marketing programs make it easy to tie into national promotional campaigns that will drive traffic to Huntington Beach. • $$$$: Pepsi-Cola's financial commitment is substantial. o Annual sponsorship support • Pepsi-Cola's brand line-up is most preferred in Southern California. • Pepsi -Cola will provide state-of-the-art vending equipment to meet your needs. • Service: Pepsi -Cola has assigned a veteran staff of vending professionals to ensure installations, repair service, and delivery service that exceed your expectations. 22 • City of Huntington Beach J' hIL'ti 6LACm Next Steps 0 Sign 1 0-year agreement. • Plan installation schedule by location. • When can we get started? 23 u r �4 c e 1 1 IF - ir4y �r•�: f n �, Y' _ ��rt�a ',} i t�' art, ! : .rl'. � r ' - - k{.F 4 �nyy. 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