4.3. SR 10-07-2013 City of
Elk - Request for Action
River O.
To Item Number
Mayor and City Council 4.3
Agenda Section Meeting Date Prepared by
Consent October 7, 2013 Rich Czech,Arena Manager
Item Description Reviewed by
Concessions Agreement for Ice Arena Cal Portner, City Administrator
Reviewed by
Action Requested
Approve by motion a concessions agreement between the Ice Arena and Bernick's Pepsi.
Background/Discussion
The Ice Arena's current concessions agreement with Bernick's Pepsi expired on September 30. The new
five-year agreement goes through September 2018. Contract highlights include:
■ $2,000 per year advertising
■ 20 donated N/C cases of can product ($500 value)
■ Equipment and service provided for vending and concession of hot beverage machine
■ 30% commission on candy and snack machine
■ 15% commission on hot beverage machine
■ Rebate per case of$5 for 20 oz bottles and Kick Start Energy drinks, $1.00 rebate for Nesquick.
■ Case prices: 2013— 14$29.62 - prices will not exceed more than 3%per year,Ber ick's will
supply a letter of explanation of any increase
Financial Impact
Impacted of agreement is included in the 2014 budget.
Attachments
■ Concessions Agreement
P a w E A E U s r
NaA f RE]
Bernicks and Arena Concessions Agreement
Agreement made this 7th day of October, 2013, by and between the Elk River Ice Arena,
located in Elk River, Minnesota, hereinafter referred to as "City", and Chas A. Bernick,
Inc., a Minnesota corporation, hereinafter referred to as "Bernick".
RECITALS:
I. City has requested a bid, on behalf of the Elk River Ice Arena, located in Elk
River, Minnesota, for soft drink vending, concession and candy & snack rights
and providing of concession equipment for the purpose of soft drink vending
concession and candy & snack.
2. Bernick has submitted a proposal and City has accepted Bernick proposal for
soft drink vending, concession and candy & snack rights and providing of
equipment for the purpose of soft drink vending, concession and candy &
snack.
3. The parties now intend that the nature of the operation of the Arenas soft drink
vending, concession and candy & snack rights and providing of equipment be
set forth in writing.
THEREFORE, in consideration of the foregoing promises and of the mutual covenants
and agreements herein contained, it is mutually agreed as follows:
1. City agrees to give and grant to Bernick the sole and exclusive right to advertise
in or about the Arena upon the soft drink equipment to be installed by Bernick.
2. Bernick agrees to provide and install at Bernick's sole cost new soft drink
vendors. And will update graphics on all equipment.
3. City agrees and grants to Bernick the sole and exclusive rights and privileges to
vend Bernick soft drink product lines (including coffee, teas,waters,juices,
energy drinks, sports drinks and any new products from Bernick's) at the Arena.
This grant shall extend and be exercised during the normal hours of the Arena
including, but not limited to, all special events sponsored by City in the Arena, or
any third parties using Arena's facilities. Bernick shall have and retain the soft
drink vending rights to be sold using the soft drink vending and concession
equipment at the City for a period of five (5) years commencing as of the date of
this Agreement and terminating on September 16, 2018 unless otherwise
renewed prior to the expiration of the Agreement by a written Agreement
between the parties hereto. This agreement could be amended in the event of a
new facility.
4. Each year of the contract, Bernick's will provide a check one time per year for
Sponsorships & adverting for $2,000. Bernick's will also donate each year, 20
cases of can product at N/C ($500 value).
5. Bernick's will provide a rebate for the following packages on time per year:
20oz CSDs $5.00 per case
Nesquick $1.00 per case
Kickstart Enegry $5.00 per case
6. Pricing for 20oz CSD will be as follows
2013-2014 $29.62
2014-2015 $30.51
2015-2016 $31.42
2016-2017 $32.36
2017-2018 $33.33
Prices will not exceed more then a 3% increase per year and Bernick's will
supply a letter of explanation of increases.
7. Commissions will be as follows;
Candy/Snack 30% Commission
Hot Beverage 15% Commission
8. Upon 90 days written notice, the City shall have the right to terminate the
vending rights of Bernick's Pepsi, at any time for any reason. In the notice, the
City shall set forth reasons for termination. If the reasons for terminating relate
to receiving a lower price or any competitive bid, and if Bernick's Pepsi agrees
to meet such competitive bid price within thirty- (30) days of receiving notice
from the City, this contract shall not terminate. If the City terminates this
contract Bernick's Pepsi shall have the right to remove its equipment from the
Elk River Ice Arena.
9. This Agreement constitutes the entire agreement between the parties hereto, and
shall be binding upon their heirs, executors, administrators, legal representatives,
successors, and assigns. This agreement may not be altered or amended in any
manner except in writing signed by both parties. No forbearance to exercise any
right or privileges under this agreement or waiver of any breach of any of its
terms, rights or privileges, but the same shall continue and remain full force and
act the same as if no such forbearance or waiver had occurred.
10. This Agreement shall be interpreted under and governed by the laws of the State
of Minnesota. If any provisions hereof or the application of any provision to any
person or circumstance is held invalid or unenforceable, the remainder hereof
and the application of provision to other persons or circumstances shall remain
valid and enforceable.
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and
year first above written.
Mayor Chas A. Bernick, Inc.
By By
City Clerk Authorized Signature Katie Nelson
Date Date