Exclusive 3-Year Soft Drink Provider Agreement for Leisure ServicesCity of Dubuque
City Council Meeting
Consent Items # 08.
Copyrighted
March 20, 2023
ITEM TITLE: Exclusive 3-Year Soft Drink Provider Agreement for Leisure Services
SUMMARY: City Manager recommending City Council approval of the 3-year Pepsi
agreement with Lime Rock Springs as the exclusive soft drink provider
for the Bunker Hill Golf Course, McAleece Concession, Flora and Sutton
Pools concession, Veterans Memorial Park and the Port of Dubuque
Marina.
SUGGESTED Suggested Disposition: Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
Staff Memo
Agreement
Proposal
Type
City Manager Memo
Staff Memo
Supporting Documentation
Supporting Documentation
THE CITY OF
Dubuque
DUjIBQTE
WAWca 914
Masterpiece on the Mississippi
2007-2012-2013
2017*2019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Exclusive Soft Drink Provider Agreement for Leisure Services Facilities
DATE: March 15, 2023
Leisure Services Marie Ware is recommending City Council approval of the 3-year
Pepsi agreement with Lime Rock Springs as the exclusive soft drink provider for the
Bunker Hill Golf Course, McAleece Concession, Flora and Sutton Pools concession,
Veterans Memorial Park and the Port of Dubuque Marina.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micl�ael C. Van Milligen
MCVM-sv
Attachment
CC' Crenna Brurnwell, Citv Attornev
Cori Burbach, Assistant City Manager
Marie Ware, Leisure Services Manager
Dan Kroger, Recreation Division Manager
THE CITY OF
D�Uj__B E
Mastei-piece on the Mississippi
Dubuque
AN-AmMu CKY
2007-2012-2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Exclusive Soft Drink Provider Agreement for Leisure Services Facilities
DATE: March 8, 2023
INTRODUCTION
The purpose of this memorandum is to recommend approval of the attached Lime Rock
Springs 3-year Agreement as the exclusive soft drink provider for the Bunker Hill Golf
Course, McAleece concession, Flora and Sutton pool concession, Veterans Memorial
Park and the Port of Dubuque Marina.
BACKGROUND
In 2020 Leisure Services entered a 3-year exclusive soft drink provider agreement
with Lime Rock Springs for Bunker Hill Golf Course, Flora and Sutton pools, Port of
Dubuque Marina and McAleece concessions. The current agreement expires on March
31, 2023. Staff prepared an RFP for Exclusive Soft Drink rights for the aforementioned
sites as well as adding Veterans Memorial Park/Miracle League of Dubuque and a
vending machine alternate.
DISCUSSION
Staff received 2 proposals from local venders. One from Atlantic Bottling (Coca-Cola)
and the other from Lime Rock Springs (Pepsi). Both companies are well established
within the Dubuque community. The attached proposal from Pepsi provides the City of
Dubuque with the highest potential for revenue generation, a solid annual funding
program and shortest turn around on product orders/delivery. Pepsi's proposal will
provide the City with a payment of $5,000 per year to go back into operating revenue.
In addition, Pepsi pledges to spend up to $2,000 per year on Department services like
golf fees and pool rentals. Pepsi did make this same pledge in their previous
agreement as well as spent the full $2,000 in each of those years. Coke's proposal
included an annual $6,600 payment with no other incentives.
The City Attorney's office has also reviewed contract agreement.
ACTION REQUESTED
I respectfully request and recommend City Council approval of the 3-year Pepsi
agreement with Lime Rock Springs as the exclusive soft drink provider for the Bunker
Hill Golf Course, McAleece Concession, Flora and Sutton Pools concession, Veterans
Memorial Park and the Port of Dubuque Marina.
Prepared by: Dan Kroger, Recreation Division Manager
cc: Janna Beau, Recreation Supervisor
Mike Sullivan, PGA Professional
Brian Feldott, Recreation Supervisor
Jenny Larson, Chief Financial Officer
101,
LIME ROCK SPRINGS COMPANY
dba: PEPSI-COLA BOTTLING CO. OF DUBUOUE
10537 Route 3 - Dubuque, 1A 52001 P44d
fild Phone (563) 556-2921
Fax (563) 556-2924
http:-Z/www.peRsidbq.com
ON -PREMISE AGREEMENT
This On -Premise Agreement ("Agreement") Between Lime Rock Springs Co. d/b/a Pepsi -Cola Bottling
Company of Dubuque ("Pepsi") and the City of Dubuque, Iowa, relating to the purchase and sale of fountain,
canned, or bottled carbonated and non -carbonated soft drinks, tea, juice, energy, or water beverages ("Branded
Beverages") at the City of Dubuque, Iowa facilities described herein and related terms and conditions. Pepsi and
the City of Dubuque, Iowa (collectively, the "Parties") agree as follows:
I . Term. The term of this Agreement will be for a period of three (3) Years, commencing on April
1 st, 2023 and expiring at midnight on March 3 I't, 2026. As used in this Agreement, the capitalized
term "Year" shall mean each consecutive twelve (12) month period during the Term.
2. City of Dubuque Leisure Services Locations. This Agreement includes location(s) described in
Sec. 16 only.
3. Sale and Purchase of Branded Beverages. Pepsi shall supply, sell, and deliver to the City of
Dubuque, Iowa, and the City of Dubuque, Iowa shall purchase and accept from Pepsi, during the
Term of this Agreement, one hundred percent (100%) of the City of Dubuque, Iowa requirements
for the City of Dubuque, Iowa sales of Branded Beverages by means of the supply of Branded
Beverages sold by Pepsi under license for sale by Pepsi during the Tenn of this Agreement as may
be added to or substituted for any of the Pepsi Products currently offered by Pepsi.
4. Exclusive Definition. The City of Dubuque, Iowa agrees to offer Pepsi Branded Beverages
exclusively during the Term at the City of Dubuque, Iowa property(s) described in See. 16. The
City of Dubuque, Iowa shall also purchase all Pepsi products (and cups, lids, and CO2, if
applicable) directly from Pepsi. No competitive products may be sold, dispensed, sampled, or
served anywhere at the City of Dubuque, Iowa facility(s) described in Sec. 16.
5. Pepsi Equipment. Pepsi will provide all equipment for use by the City of Dubuque, Iowa for sale
of Branded Beverages during the Term of this Agreement ("Pepsi Equipment") for point of sale
and delivery of Branded Beverages to customers of the City of Dubuque, Iowa, based on a mutual
consent between Parties. All Pepsi Equipment supplied by Pepsi will remain the property of Pepsi.
Pepsi will provide free of charge to the City of Dubuque, Iowa service, repair, and replacement of
Pepsi Equipment.
6. Pricing. Pepsi extends National Account pricing on Post Mix Fountain. Pricing is set by Pepsi
Nationally and may be subject to price increases on a calendar year basis. Bottle/can pricing may
be subject to no more than a 5% increase on a calendar year basis. However, the price ceilings are
subject to additional adjustments greater than stated ceilings in the event of a substantial and
unforeseeable increase in a major component of the bottler's cost of goods, manufacturing or
delivery.
7. Indemnity. Indemnity. Pepsi shall indemnify and hold harmless City, its officers and employees,
from and against any and all claims or damages caused by or resulting from the negligence of
Pepsi in the performance of this Agreement to the extend of Pepsi's insurance coverage. Pepsi
shall provide insurance a described in the attached Insurance Schedule.
8. Pepsi Terms
- $5000.00 to be paid to City of Dubuque, Iowa at the beginning of each contract Year
- $2,000 will be paid annually at Leisure Services properties on rounds of golf, family pool
parties, etc... In the event such properties aren't open or able to provide this service to Pepsi,
(Pepsi) will not be held liable to make such payments.
- Cooler, Menu Boards, Recycle Bins, and the use of Arctic Coolers for special events/games
at no charge.
9. Termination and Failure to Perform. If the City of Dubuque, Iowa breaches any of its
obligations set forth in this Agreement, then at its option and not as its sole remedy, Pepsi may:
a) Terminate this Agreement, and the City of Dubuque, Iowa shall pay to Pepsi the unearned or
prorated portion of the sponsorship payments.
b) Withhold any future sponsorship payments
c) The City of Dubuque may terminate this Agreement with or without cause upon thirty (30)
days written notice delivered to Pepsi.
10. Confidentiality. Except as may otherwise be required by law or legal process, neither party hereto
shall disclose to any third party the terms and conditions of this Agreement.
11. Assignment. This Agreement shall not be assigned by either party hereto without the prior written
consent of the other party.
12. Entire Agreement. This Agreement contains the entire understanding and agreement between the
parties hereto regarding the advertising of Branded Beverages for sale at the City of Dubuque,
Iowa and supersedes all other agreements between the parties respecting such. This Agreement
includes all vending and events held at the City of Dubuque, IA property(s) in Sec. 16. This
Agreement may be amended or modified only by a written agreement, signed by each of the
Parties.
13. Savings Clause. If any provision of this Agreement, or the application of such provision to any
person or circumstance, shall be held invalid, the remainder of this Agreement, or the application
of such provision to persons or circumstances other than those as to which it is held invalid, shall
not be affected thereby.
14. Waiver. Failure of either party at any time to require perfonnance of any provision of this
Agreement shall not limit the party's right to enforce the provision, nor shall any waiver of any
breach of any provision be a waiver of any succeeding breach of any provision or a waiver of the
provision itself for any other provision
15. Force Majeure. Neither party shall be in default or otherwise liable for any delay in or failure of
its performance under this Agreement if such delay or failure arises by any reason beyond its
control, including any act of God, the elements, earthquakes, floods, fires, pandemic, actions or
decrees of governmental bodies. If an event is a "Force Majeure Event" then Pepsi obligations for
sponsorship payments shall be excused for a period of time equal to the period during which the
City of Dubuque, Iowa and Pepsi have been prevented from performing.
16. OUTLETS under the banner of The Dubuque Leisure Services
(a) Flora Pool
(b) Sutton Pool
(c) Bunker Hill Golf Courses
(d) McAleece Sports Complex
(e) Port of Dubuque Marina
(f) Veterans Memorial Park
17. Law Governing. This Agreement shall be governed by and construed in accordance with the laws
of the State of Iowa.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed and executed in their behalf
by their respective, authorized representatives on this J < -'� day of March, 2023.
City of Dubuque, Iowa
Date: 03/21/2023
Name: Michael Van Milligen
Signature
Title: CitY Manager
Lime Rock Springs Co.,
dba: Pepsi -Cola Bottling
Company of Dubuque
Date: 0,;L 3
Name: Carlto erriwether
Signatu/re:
a 013el
Title: irector of Sales &_ Operations
INSURANCE SCHEDULE G
1 Vendor shall furnish a signed certificate of insurance to the City of Dubuque, Iowa for the
coverage required in Exhibit I prior to the contract commencement. Each certificate shall be prepared on
the most current ACORD form approved by the Iowa Insurance Division or an equivalent. Each certificate
shall include a statement under Description of Operations as to why the certificate was issued. Vendor
Service Agreement dated
2. All policies of insurance required hereunder shall be with an insurer authorized to do business in
Iowa and all insurers shall have a rating of A or better in the current A.M. Best's Rating Guide.
3. Each certificate shall be furnished to the Finance Department of the City of Dubuque.
4. The service provider shall be required to carry the minimum coverage/limits, or greater if required
by law or other legal agreement, in Exhibit 1. Failure to provide the required minimum coverage shall not
be deemed a waiver of such requirements by the City of Dubuque.
5. Failure to obtain or maintain the required insurance shall be considered a material breach of this
agreement.
6. All required endorsements shall be attached to certificate.
7. Whenever a specific ISO form is referenced the current edition of the form must be used unless
an equivalent form is approved by the Director of Finance and Budget. The service provider must identify
or list in writing all deviations and exclusions from the ISO form.
8. If vendor's limits of liability are higher than the required minimum limits then the vendor's limits
shall be this agreement's required limits.
9. Vendor shall require all subcontractors and sub -subcontractors to obtain and maintain during the
performance of work insurance for the coverages described in this Insurance Schedule and shall obtain
certificates of insurance from all such subcontractors and sub -subcontractors. Vendor agrees that it shall
be liable for the failure of a subcontractor and sub -subcontractor to obtain and maintain such coverage.
The City may request a copy of such certificates from the Vendor.
10. Vendor shall be responsible for deductibles/self-insured retention for payment of all policy
premiums and other costs associated with the insurance policies required below.
11. All certificates of insurance must include agents name, phone number, and email address.
12. The City of Dubuque reserves the right to require complete, certified copies of all required
insurance policies, including endorsements, required by this Schedule at any time.
13. The City of Dubuque reserves the right to modify these requirements, including limits, based on
changes in the risk or other special circumstances during the term of the agreement, subject to mutual
agreement of the parties.
INSURANCE SCHEDULE G (continued)
EXHIBIT I
A) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit $2,000,000
Products -Completed Operations Aggregate Limit $1,000,000
Personal and Advertising Injury Limit $1,000,000
Each Occurrence $1,000,000
Fire Damage Limit (any one occurrence) $50,000
Medical Payments $5,000
1 ) Coverage shall be written on an occurrence, not claims made, form. The general liability
coverage shall be written in accord with ISO form CG 00 01 or business owners form BP 00 02. All
deviations from the standard ISO commercial general liability form CG 00 01, or Business owners form
BP 00 02, shall be clearly identified.
2) Include ISO endorsement form CG 25 04 "Designated Location(s) General Aggregate Limit."
3) Include endorsement indicating that coverage is primary and non -contributory.
4) Include Preservation of Governmental Immunities Endorsement (Sample attached).
5) Include additional insured endorsement for:
The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all
its boards, commissions and/or authorities and their board members, employees and volunteers. Use ISO
form CG 20 10 (Ongoing operations) or its equivalent.
6) Policy shall include Waiver of Right to Recover from Others endorsement.
B) WORKERS'COMPENSATION & EMPLOYERS LIABILITY
Statutory Benefits covering all employees injured on the job by accident or disease as prescribed by Iowa
Code Chapter 85.
Coverage A Statutory —State of Iowa
Coverage B Employers Liability
Each Accident $100,000
Each Employee -Disease $100,000
Policy Limit -Disease $500,000
Policy shall include Waiver of Right to Recover from Others endorsement.
Coverage B limits shall be greater if required by the umbrella/excess insurer.
moz
If, by Iowa Code Section 85.1A, the Vendor is not required to purchase Workers' Compensation
Insurance, the Vendor shall have a copy of the State's Nonelection of Workers' Compensation or
Employers' Liability Coverage form on file with the Iowa Workers' Compensation Insurance
Commissioner, as required by Iowa Code Section 87.22. Completed form must be attached.
INSURANCE SCHEDULE G (continued)
C) POLLUTION LIABILITY
Coverage required: —Yes — * —No
Pollution liability coverage shall be required if the lessee, contracting party, or permittee has any pollution
exposure for abatement of hazardous or contaminated materials including, but not limited to, petroleum
products, the removal of lead, asbestos, or PCBs. Pollution product and completed operations coverage
shall also be covered.
Each Occurrence $2,000,000
Policy Aggregate $4,000,000
1 ) Policy to include job site and transportation coverage.
2) Include additional insured for:
The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all
its boards, commissions and/or authorities and their board members, employees and volunteers. Use ISO
form CG 20 10. (Ongoing operations) or its equivalent and CG 20 37(competed operations).
3) Include Preservation of Governmental Immunities Endorsement.
4) Provide evidence of coverage for 5 years after completion of project.
D) PROFESSIONAL LIABILITY $1,000,000
Coverage required: —Yes —*—No
If the required policy provides claims -made coverage:
1) The Retroactive Date must be shown and must be before the date of the agreement.
2) Insurance must be maintained and evidence of insurance must be provided for at least five (5)
years after completion of the work or services.
3) If coverage is canceled or non -renewed and not replaced with another claims -made policy form
with a Retroactive Date prior to the date of the agreement, the contractor must provide "extended
reporting" coverage for a minimum of five (5) years after completion of the work or services.
E) CYBER LIABILITY/BREACH $1,000,000
Coverage required: —Yes —*—No
Coverage for First and Third Party liability including but not limited to lost data and restoration, loss of
income and cyber breach of information.
F) UMBRELLA/EXCESS $1,000,000
Coverage required: _* Yes No
The General Liability, Automobile Liability and Workers Compensation Insurance requirements may be
satisfied with a combination of primary and Umbrella or Excess Liability Insurance. If the Umbrella or
Excess Insurance policy does not follow the form of the primary policies, it shall include the same
endorsements as required of the primary policies including Waiver of Subrogation and Primary and Non-
contributory in favor of the City.
Please be aware that naming the City of Dubuque as an additional insured as is required by this
Insurance Schedule may result in the waiver of the City's governmental immunities provided in Iowa Code
sec. 670.4. if you would like to preserve those immunities, please use this endorsement or an equivalent
form.
PRESERVATION OF GOVERNMENTAL IMMUNITIES ENDORSEMENT
Nonwaiver of Governmental Immunity The insurer expressly agrees and states that the purchase
of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any
of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa
Section 670.4 as it is now exists and as it may be amended from time to time.
2. Claims CoveraQe. The insurer further agrees that this policy of insurance shall cover only those
claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it
now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa
Section 670.4 shall be covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunit . The City of Dubuque, Iowa shall be responsible for asserting
any defense of governmental immunity, and may do so at any time and shall do so upon the timely written
request of the insurer.
4. Non -Denial of Coverage. The insurer shall not deny coverage under this policy and the insurer
shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for
reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of
the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa.
No Other Change in Policy. The above preservation of governmental immunities shall not otherwise
change or alter the coverage available under the policy.
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