HomeMy WebLinkAboutCoca Cola Bottling Company - Vending Agreement2406 W. Washington Ave, Suite B Yakima, Washington 98903 (509) 575-6149 (509) 575-6185 FAX
April 2, 2013
Jeff Hemp
Coca-Cola Bottling Yakima & Tri-Cities
PO Box 2905
Yakima, WA 98907
RE: Contract extension
Dear Mr. Hemp:
Thank you for your March 29, 2013 letter requesting to exercise your option to extend your
agreement for an additional two years.
We appreciate your business here at the airport and agree to extend your agreement through
April 30, 2015.
Sincerely,
Rob Peterson
Interim Airport Manager
March 29th 2013
Yakima Air Terminal
Attn: Rob Peterson
2406 West Washington Ave.
Yakima, Wa 98903
Re: Contract Extension
Mr. Petersen,
Our current contract is set to expire on April 30�', 2013. We would like to ask for a 2
year extension that would expire on April 30th 2015.
As Partners in the business community, we have invested in The Yakima Air Terminal by
purchasing 3 new vending machines, invested in a debit-card system and specially trained
our drivers on security access to enhance the services provided to employees and visitors.
We have also shown success by growing sales on average of 31 % per year.
An extension allows us the chance to continue to grow sales and provide for the needs of
the staff and visitors at the Yakima Air Terminal.
Your consideration is greatly appreciated,
Sincerely,
Jeff Hemp
On-Premise Business Development Manager
Coca-Cola Bottling Yakima & Tri-Cities
0.21210100WIT" 91.1331 Res i
Coca-Cola Bottling of Yakima
THIS AGREEMENT, executed this I st day of May, 2011, between the YAKIMA AIR TERMINAL —
McALLISTER FIELD, an agency of the City of Yakima and County of Yakima, Washington, hereinafter
referred to as "LESSOR," and Coca-Cola Bottling Company, a Washington corporation) hereinafter referred to
as "COMPANY":
WITNESSETH:
WHEREAS, LESSOR operates the Yakima Air Terminal — McAllister Field, under the authority granted by
the Joint Operations Agreement signed by the City and County of Yakima, July 1, 1982, hereinafter referred to
as "Airport," and
WHEREAS, LESSOR has approved property available for use as provided by this Agreement, and
COMPANY desires to occupy and use such property in accordance with this Agreement,
NOW THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived
by each party, the parties agree as follows:
1. PREMISES: LESSOR grants unto COMPANY the right to operate a vending machine concession in
the public and sterile areas of the Terminal Building at the Yakima Air Terminal - McAllister Field at a
location to be specifically determined by the Airport Manager with the Company.
2. TERM: The tenancy created by this Agreement shall commence on May 1, 2011, and continue for a
period of two (2) years until April 30, 2013, or otherwise terminated as provided for herein. An option
for a two-year renewal/extension with written consent of the Lessor is available, such extension at the
sole approval of the Lessor, approval not o be unreasonably wi hheld, but with renegotiated
commission percentages.
3. COMMISSION: COMPANY agrees to pay to the LESSOR by the twentieth (20th) of each month a
commission for as per the bid document attached on gross sales for the immediately preceding calendar
month. Any commission payment past due shall accrue a delinquency charge of twelve percent (12%)
per annum from due date until paid. The delinquency charge -shall be calculated by an average of the
three immediately preceding commission payments.
4. STATEMENTS/RECORDS: COMPANY shall furnish to the LESSOR a monthly statement of gross
receipts showing the activity of each vending machine. This statement shall be submitted with
commission fee on or before the twentieth (20th) day of each month for the previous calendar month.
5. DEPOSIT: Upon execution of this Agreement by both parties, COMPANY shall deposit with
LESSOR the amount of $250.00 as a guarantee of COMPANY'S performance of this Agreement and the
timely payment of the commission provided for herein. In the event COMPANY shall fail to pay the
Filename: LeaseNendin!l /draft
commission as provict%.,u nerein, or otherwise breach this Agr"ment, then the Airport Manager may
apply such deposit, or any part thereof as may be necessary, to the payment of rental or to the payment
of damages for such breach or pursue any other remedies provided herein, and COMPANY shall
replenish such applied deposit funds within three (3) days to return total deposit to $250.00
6. TAXES AND LIENS: In addition to the commission payable above, COMPANY promises and agrees
to pay, as the same become due and payable, all licenses, fees and taxes, required to be paid by
COMPANY by reason of this and by reason of COMPANY's use and occupancy of the leased premises
and by reason of COMPANY's construction or ownership of improvements to the leased premises.
COMPANY shall neither suffer nor permit the attachment of any lien or other encumbrance on the
leased premises by reason of COMPANY's occupancy thereof. COMPANY agrees to indemnify
LESSOR and shall hold LESSOR harmless from any such taxes and liens.
7. USE: COMPANY agrees to use the leased premises only for the sale through vending machines of soft
drinks and snacks or for any other use allowed by the Airport Manager. The use of the property for any
other purpose shall be deemed a material breach of this Agreement constituting grounds for its
termination.
8. UTILITY SERVICE: LESSOR shall provide all electrical power without additional cost to the
COMPANY. The COMPANY shall pay any and all costs related to the installation, repair, operation or
removal of machines, and the cost of installing additional electrical outlets and other items necessary for
the operation of the vending machine concession.
9. MACHINES/MAINTENANCE:
A. COMPANY shall provide types of vending machines as determined by
agreement between COMPANY and the Airport Manager.
B. COMPANY agrees to keep vending machines clean and in working condition,
and shall encase machines in a finished presentation area at their expense. COMPANY further
agrees that COMPANY's machines and services shall at all times be subject to inspection by any
person or persons designated by the BOARD.
C. COMPANY agrees to provide competent service and maintenance personnel operating from the
local office on a 24-hour, 7 day week basis. COMPANY agrees to post emergency repair telephone
numbers on each piece of equipment and repairman shall be on the job three hours from receipt of
emergency call.
10. SIGNS: No signs or other advertising matter or devices shall be used or displayed in or about the leased
premises or upon any portion of the Yakima Air Terminal - McAllister Field without the prior written
approval of the Airport Manager.
11. SUBLETTING: There shall be no subletting of the Agreement.
Filename: LeaseNendingl I draft 2
12. REGULATIONS: k-ti MPANY agrees to comply with a.. applicable laws, ordinances, rules,
regulations and policies of all governmental authorities having jurisdiction over the Airport, including
policies adopted by LESSOR, as such laws, ordinances, rules, regulations and policies apply to the use
and operation of Airport property, facilities and operations as those laws, ordinances, rules, regulations
and policies now exist or may hereafter become effective,
13. ASSIGNMENT: There shall be no assignment of this Agreement.
A. The parties agree that LESSOR, through its Airport Manager or other person authorized by the
Airport Manager, may enter upon the leased premises at any reasonable time to make such inspections
as LESSOR may deem necessary to the proper enforcement of any term, provision or condition of this
Agreement. No such entry or inspection by LESSOR is required by this provision, and the failure of
LESSOR to enter and make inspection shall not alter the relationship of the parties and their respective
rights and duties provided by this Agreement. COMPANY shall be granted the right of quiet enjoyment
upon performance of all terms of this Agreement.
B. LESSOR may further develop or improve Airport property and facilities, regardless of the desire or
views of COMPANY regarding any such development or improvement, and without interference or
hindrance on the part of COMPANY and without liability to COMPANY, provided the operations of the
COMPANY are not unreasonably interrupted.
C. LESSOR reserves the right, but shall not be obligated to COMPANY, to maintain and keep in repair
the landing area of the Airport and all publicly owned facilities of the Airport, together with the tight to
direct and control all activities of COMPANY in that regard.
D. LESSOR reserves the right to take any action necessary or desirable by LESSOR to protect the
operations of the Airport against obstruction, or any other activity interfering with the efficient operation
of the Airport, together with the right to prevent COMPANY from erecting, or permitting to be erected,
any building or other structure on the Airport which, in the opinion of the Airport Manager, would limit
the usefulness of the Airport or constitute a hazard to aircraft.
E. During time of war or national emergency, LESSOR shall have the right to lease the landing area or
any part thereof to the United States of America for military use, and, if any such Agreement is
executed, the provisions of this Agreement shall be suspended insofar as they are inconsistent with the
provisions of the agreement with the United States of America.
F. This Agreement shall be subordinate to the provisions of any existing or future agreement between
LESSOR and the United States of America relative to the operation or maintenance of the Airport, the
execution of which has been or may be required as a condition to the expenditure of federal funds for the
development of the Airport.
G. If the leased premises or any interest therein is taken as a result of the exercise of the right of
eminent domain, this Agreement shall terminate as to such portion as may be taken. If the portion taken
Filename: LeaseNendingl I draft 3
does not feasibly pernin one continuation of the COMPANY' ,operations, COMPANY shall have the
right to terminate this Agreement. Such termination shall be effective as of the date COMPANY's
operations cease. COMPANY shall be entitled to a portion of the award representing its interest in the
premises. LESSOR shall be entitled to the remainder of the award.
A. At no expense to LESSOR, COMPANY shall defend against and indemnify fully and save harmless
the Board of the Yakima Air Terminal - McAllister Field, the Yakima Air Terminal - McAllister Field,
the City of Yakima and Yakima County and their elected and appointed officials, employees and agents,
from any and all liability, damages, suits, claims, actions, judgements or decrees, made against the
Board of the Yakima Air Terminal - McAllister Field, the Yakima Air Terminal - McAllister Field, the
City of Yakima or Yakima County or their elected and appointed officials, employees and agents,
including all expenses incidental to the investigation and defense thereof, including reasonable attorney
fees, based on or arising from the occupancy or use of the leased premises by COMPANY or as a result
of COMPANY'S operations at the Airport or from any other act or omission of COMPANY, its
servants, employees, agents, invitees, independent contractors or any other entity, person, firm or
corporation acting on behalf of COMPANY or under its direction, whether such claim shall be by
COMPANY or a third party; provided, however, that COMPANY shall not be liable for any injury,
damage or loss occasioned solely by the sole negligence of LESSOR, its agents or employees. LESSOR
shall give to COMPANY prompt and reasonable notice of any such claims or actions and COMPANY
shall have the right to investigate, compromise and defend the same to the extent of its interest.
B. COMPANY agrees to reimburse LESSOR for any damage to the premises caused by the occupancy
of COMPANY, its employees, agents, servants, invitees, independent contractors or any other person
acting on behalf of COMPANY or under its direction.
C. LESSOR agrees to defend, indemnify and hold COMPANY harmless against and from any claim or
liability arising from or alleged to arise from the presence of hazardous material or toxic waste on the
subject leased premises at the inception of this Agreement and the introduction to the premises of such
materials due to BOARDS activities or under its control.
D, COMPANY shall keep and hold the LESSOR of the Yakima Air Terminal - McAllister Field, the
City of Yakima and County of Yakima, their elected and appointed officials, agents and employees, free
and harmless from any and all claims and actions, loss, damage, expense or cost, including reasonable
attorneys fees, incidental to the investigation and defense thereof, resulting from, arising out of, or
caused by COMPANY resulting in any liability under the Federal Comprehensive Environmental
Response Compensation Liability Act of 1980, as amended, 42 U.S.C. 9601 et seq.; Hazardous
Materials Transportation Act, 49 U.S.C. 1801 et seq.; Resource Conservation and Recovery Act, 42
U.S.C. 6901 et seq.; the Clean Water Act, 42 U.S.C. 1251 et seq.; the Washington Environmental Policy
Act, RCW Ch. 43.210; the Washington Water Pollution Control Act, RCW Ch. 90.48; the Washington
Hazardous Waste Management Act, RCW Ch. 70.105; the Washington Model Toxic Control Act, RCW
Ch. 70.105D, and the regulations promulgated thereunder, or under any applicable local or state
environmental ordinance, statute, law, rule or regulation. The provisions of this Sub-section shall
survive the termination of this Agreement.
Filename: LeaseNendingl 1 draft 4
COMPANY shall file with LESSOR a certificate of insurance, or other proof of insurance acceptable to
LESSOR, evidencing an insurance policy with the Yakima Air Terminal -McAllister Field, the City of
Yakima and County of Yakima as additional insureds providing:
Comprehensive general liability insurance coverage in amounts of not less than $ 1,000,000 Combined
Single Limit for bodily injury and property damage covering COMPANY's occupancy of and activities
pertaining to the leased premises.
Not less than 30 days written notice, or other such time period as may be acceptable to LESSOR, must
be supplied to LESSOR in the event of cancellation, material change to the policy or non-renewal of any
or all policies. Certificate shall be issued by carrier(s) with a minimum A.M. BEST rating of A-VII
which is admitted in the State of Washington or other such carriers as shall be acceptable to LESSOR.
17. DEFAULT, TERMINATION & FORFEITURE:
A. The failure by COMPANY to pay commissions in the amounts and at the times specified herein, or
the failure by COMPANY to otherwise comply with any terra, provision or condition of this Agreement,
shall constitute grounds for termination of this Agreement and forfeiture of all commissions paid by
COMPANY to the time of termination. This Agreement and tenancy shall terminate and commissions
paid shall be forfeited for cause as specified above on written notice by LESSOR to COMPANY stating
the estimated amount of commissions in default or otherwise stating accurately the manner in which
COMPANY fails or has failed to comply with this Agreement. COMPANY shall make full payment or
otherwise comply with this Agreement in the manner specified in the notice within thirty (30) days
(except three (3) days for payment of commission) from COMPANY's receipt of such notice, otherwise
this Agreement and tenancy shall be terminated and rent forfeited. Such notice shall be given in writing
and served on COMPANY by personal delivery or mailed by certified mail with return receipt requested
addressed to COMPANY at its address stated below COMPANY's signature to this Agreement or such
other address as the parties may advise each other in writing. It is further agreed that after receipt of
notices and as an additional condition to avoid forfeiture, COMPANY shall pay LESSOR'S costs and
expenses, including attorney's fees, for the preparation and service of such notice. Nothing contained
herein shall release or diminish COMPANY's obligation to pay commissions for the full term of this
Agreement save such amount as the LESSOR recovers as commissions from any subsequent
COMPANY during the term of this Agreement. Notices shall be deemed received three (3) days after
mailing to COMPANY at the address below COMPANY's signature to this Agreement or such other
address as the parties may advise each other in writing.
B. As additional and not alternative remedy, optional with LESSOR and upon
thirty (30) days written notice to COMPANY, should COMPANY be in default hereunder other than
default in the payment of commissions, LESSOR may cure or correct the same and the cost of such
action by LESSOR shall immediately become due and payable from COMPANY, together with late fees
on said sum at a rate of twelve percent (12%) per annum., and the non-payment of said sum by
Filename: LeaseNendingl I draft 5
COMPANY shall be auequate grounds for LESSOR to invokt, tne other remedies as provided in this
Agreement.
C. Upon termination of this Agreement for any reason, COMPANY shall immediately surrender the
premises to the LESSOR in good condition and repair, ordinary wear and usage excepted; and
COMPANY shall remove all of COMPANY'S personal property, trade fixtures, equipment or
improvements removable by prior agreement with the LESSOR from the premises and shall repair any
damage to the premises caused by such removal. Any personal property of COMPANY, or anyone
claiming under COMPANY, which shall remain upon the premises at the expiration or termination of
this Agreement shall be deemed to have been abandoned and may be retained by LESSOR as
LESSOR'S property or disposed of by LESSOR in such manner as LESSOR sees fit without
compensation to any party.
18. INSOLVENCY: In the event COMPANY is declared bankrupt by a court of competent jurisdiction or
in the event COMPANY makes an assignment for the benefit of creditors, or if a receiver otherwise is
appointed for COMPANY, or in the event COMPANY'S leasehold estate is subjected to execution to
satisfy any judgement against COMPANY, then in that event LESSOR may immediately or at any time
thereafter without notice or demand enter into and upon the premises or any part thereof and repossess
the same and expel COMPANY or any person upon the premises and remove their effects, and
thereupon this Agreement and the tenancy hereby created shall absolutely terminate, without prejudice
to any remedies which might otherwise be available to LESSOR for collection of past due or future rent.
19. VENUE, ATTORNEY FEES: In the event of litigation to enforce the rights and obligations
hereunder, venue shall lie in Yakima County Superior Court, and the prevailing party shall be entitled to
its reasonable attorney fees in addition to court costs.
20. NON-DISCRIMINATION CLAUSE: To the extent required by law, COMPANY, for itself, its
personal representative, successors in interest and assigns, as a part of the consideration hereof, does
hereby covenant and agree as follows:
A. No person, on the grounds of race, color, religion, sex, age, marital status, handicap or national
origin, shall be unreasonably excluded from participation in, denied the benefits of, or be otherwise
subjected to discrimination in COMPANY's personnel policies and practices or in the use or operation
of COMPANY's services or facilities.
B. COMPANY agrees that in the construction of any improvements on, over or under Airport land
and the furnishing of services thereon, no person, on the grounds of race, color, religion, sex, marital
status, handicap, age or national origin, shall be unreasonably excluded from participation in, denied the
benefits of, or otherwise be subjected to discrimination.
C. COMPANY shall use the Premises in compliance with all other requirements imposed by or
pursuant to Title 49. Code of Federal Regulations, Department of Transportation, Subtitle A, Office of
the Secretary, Part 21, Nan - discrimination in Federally Assisted Programs of the Department of
Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be
amended.
Filename: LeaseNendingI I draft 6
D. It is the policy of the Department of Transportation that minority business enterprise as defined
in 49 CFR Part 23, i.e., firms owned and controlled by minorities; firms owned and controlled by
women and firms owned and controlled by financially disadvantaged persons; shall have the maximum
opportunity to participate in the performance of leases as defined in 49 CFR Section 23.5.
Consequently, this Agreement is subject to 49 CFR Part 23 as applicable.
COMPANY hereby assures that no person shall be excluded from participation in, denied the benefits of
or otherwise discriminated against in connection with the award and performance of any contract,
including leases, covered by 49 CFR Part 23 on the grounds of race, color, national origin or sex.
COMPANY hereby assures that it will include the above clauses in all sub-leases and cause sub-
COMPANY'S to similarly include clauses in further sub-leases.
22. DISADVANTAGED BUSINESS ENTERPRISES:
CONCESSIONAIRE OBLIGATION: This Agreement is subject to the requirements of the U. S.
Department of Transportation's regulations, 49 CFR Part 23, Subpart F. LESSOR agrees that it will not
discriminate against any business owner because of the owner's race, color, national origin or sex in
connection with the award or performance of any concession agreement covered by 49 CFR Part 23
Subpart F.
23. INTEGRATION: This document embodies the entire Agreement between the parties with respect to
the subject matter herein contained. No amendments or modifications hereof shall be enforceable unless
in writing, signed by the party to be charged.
24, NON-WAIVER CLAUSE:
No waiver of default by either party of any of the terms, covenants, and conditions hereof to be
performed, kept, and observed by the other party shall be construed as, or shall operate as, a waiver of
any subsequent default of any of the terms, covenants, or conditions herein contained, to be performed,
kept and observed by the other party.
Time is of the essence of this entire Agreement
Filename: LeaseNendingl I draft 7
YAKIMA AIR TERMINAL - McALLISTER FIELD
2400 W. Washington Avenue
Yakima, Washington 98903
(509) 575 -6149 - phone
(509) 575 -6185 - FAX
1�
Carl L. Renmel, E, Airport Manager
STATE OF WASHINGTON
County of Yakima l
I certify that I know or have satisfactory evidence that Michae and signed this instrument,
on oath stated that he was authorized to execute the instrument and acknowledged it as the
Manager of the Yakima Air Terminal - McAllister Field to be the free and voluntary act of such
party for the uses and purposes mentioned in the instrument.
Datef ��t��oa�tsopr
By. ,.� 0 �ALOI,j °���
Notary Public ,w" .� N poi.....
Appointment Expires
COMPANY: Coca -Cola Bottling Company G _1 p
Company Name Coca -Cola Battling Company
Physical Address: 607 East "R" Street, Yakima Wa. 98902 app p p101 # I I � ON
Mailing Address: PO Box 2905, Yakima Wa. 98907
PHONE: 509 - 248 -1855
FAX: 509 - 457 -6875
-� /
Signatu Date
Jeff Smith
Branch Manager
STATE OF WASHINGTON
County of Yakima
Filename. LeaseNendingl 1 draft 8
I certify that I know or have satisfactory evidence that T-e I'PTm,4� signed this instrument
and acknowledged it to be his/her free and voluntary act for the uses and purposes mentioned in
the instrument.
Date
By:
Notary Publi
Appointment Expires
STATE OF WASHINGTON
County of Yakima
10 YAL
j$10N
PUBLIC
0
ot, AZ
..........
Orqbwl
Filename: LeaseNendingl 1 draft 9
Vending Machine Proposal
Coca-Cola, (company name) proposes to provide vending machine services in the Yakima Air Terminal building as
follows:
Concourse (ticketing/waiting area; baggage claim)
1-677 National Coffee Machine
1 -AMS Snack Machine
I- Dixie Narco 5800 Glassfront Beverage Machine
Passenger Waiting Are ('TSA screened passenger area/sterile area
1-677 National Coffee Machine
I -AMS Snack Machine
1 -Dixie Narco 5800 Glassfront Beverage Machine
Jeff Smith
Brar les Manager
607 E." Ft" Street/ P.O. BOX 29gS
Vakima WA CiAgrl-f MIRM,
Jeff Hemp
On Premises Manager
leff@dofsenco,00rn
Coon -Cilia Battling CO., Yakima • Tri-Cities
1. Machines may be added, changed, moved and/or removed from the area(s) in the future at the request of the Company
and/or Airport Manager.
2. Prices for vended items shall be consistent with the Company's other concession locations, and prices shall be
determined and/or changed only in direct consultation with the Airport Manager,
3. Brands, containers sizes and types to be determined by Company.
4. A coffeelhot drink vending machine is required in both areas above.
5. The YAT will make all efforts necessary to secure the services of a coffee/gift shop in the terminal.
6. To be considered: recycle container(s); 'guaranteed vend' customer satisfaction; equipment accepts bills of multiple
amounts & dollar coins; debit card purchase; minimal use of utilities/electricity; health-conscience choices; unit type sales
tracking.
Coca-Cola, (company name) offers the following commission percentages:
%15 Snacks
% Drinks
I acknowledge this Proposal will become attached by reference to the final concession agreement.
Signed: CZ/ Date: 3-25-2011
f (
Printed Name: Jeff Smith
Company Name:
Company Address:
r"47TWO "70T.T.T.
PO Box 2905
607 East "W' St
Yakima, Wa 98907
Title: Division Manager
Phone: (w) 509 248-1855 (cell) 509 728-1064
FAX: 509457-6875
E-mail: jsniith@dolsenco.com