15218 1 RESOLUTION NO. 15,218
2
3 A RESOLUTION TO APPROVE A FIRST AMENDMENT TO THE
4 PEPSICO, INC., POURING RIGHTS AGREEMENT; AND FOR OTHER
5 PURPOSES.
6
7 WHEREAS,the City of Little Rock("City") Board of Directors passed Resolution No. 15,147,on or
8 about January 21, 2020, authorizing the Mayor and the City Clerk to enter into a contract with PepsiCo,
9 Inc., for the exclusive Pouring Rights for the City's Parks and Recreation facilities; and,
10 WHEREAS,Resolution No. 15,147 requires the term of the relevant contract to be one(1)-year with
11 the option of up to five (5), one (1)-year renewals, provided the first year shall end on December 31,
12 2020;and,
13 WHEREAS,because of delays due to the COVID-19 Pandemic and for other reasons, it is untenable
14 to have a contract term for one(1)-year to end on December 31,2020; and,
15 WHEREAS, Resolution No. 15,147 states that the contract "shall require PepsiCo, Inc., to pay the
16 City Twenty Thousand Dollars ($20,000.00), plus additional fees and commissions, for a total cash
17 support and marketing fund pledge totaling Two Hundred Six Thousand, Eight Hundred Seventy Dollars
18 ($206,870.00) payable annually; if the contract and extensions are honored, one sixth of which is Thirty-
19 Four Thousand, Four Hundred Seventy-Eight and 33/100 Dollars ($34,478.33) will be paid in annual
20 installments;and,
21 WHEREAS, Resolution No. 15,147 is unclear as it states that PepsiCo, Inc. shall pay the City Two
22 Hundred Six Thousand, Eight Hundred Seventy Dollars ($206,870.00) annually and Thirty-Four
23 Thousand, Four Hundred Seventy-Eight and 33/100 Dollars ($34,478.33) shall be paid in annual
24 installments; and,
25 WHEREAS, Resolution No. 15,147 does not accurately reflect the bid PepsiCo, Inc., submitted to
26 the City and some of the monies PepsiCo, Inc., will give the City will fluctuate depending upon the
27 number of units sold and contract negotiations have resulted in altered amounts of funding PepsiCo, Inc.,
28 will give the City.
29 NOW,THEREFORE,BE IT RESOLVED,BY THE BOARD OF DIRECTORS OF THE CITY
30 OF LITTLE ROCK,ARKANSAS:
31 Section 1. The Mayor and the City Clerk are authorized to enter into an amended contract with
32 PepsiCo,Inc.
33 Section 2. The term of the contract between the City and PepsiCo, Inc., shall commence as soon as
34 possible. The term of this contract shall be one(1)-year with the option of up to five(5)year,one(1)-year
35 renewals.
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1 Section 3. The contract shall require PepsiCo, Inc.to pay the City the following amounts:
2 • Sponsorship Funds in the amount of Eighteen Thousand Dollars($18,000.00)for the first
3 term of the contract. For any renewals of this contract PepsiCo, Inc., will adjust the
4 Sponsorship Funds based on the number of Units purchased from PepsiCo,Inc., and sold
5 at the applicable City facilities;
6 • Annual Marketing Funds in the amount of Two Thousand, Five Hundred Dollars
7 ($2,500.00)for each contract term;
8 • Annual Advertising Funds in the amount of Two Thousand, Five Hundred Dollars
9 ($2,500.00)for each contract term;
10 • Rebates dependent upon the type and number of PepsiCo products purchased from
11 PepsiCo, Inc., and sold at the applicable City facilities;
12 • Commissions for vending machine sales at the applicable City facilities;and
13 • Marketing Support in the amount of Four Hundred Eighty Dollars ($480.00) for each
14 term for agreed upon point-of-sale materials and promotional programs;
15 • Support for the Little Rock Fire Department in the amount of up to Five Thousand
16 Dollars($5,000.00)for each term.
17 Section 4. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
18 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
19 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and
20 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
21 resolution.
22 Section 5. Repealer. All laws, ordinances, resolutions, or parts of the same, that are inconsistent
23 with the provisions of this resolution, are hereby repealed to the extent of such inconsistency.
24 ADOPTED: May 5,2020
25 alpAPPROVED:
26
27 Nurr,,4:
28 City Clerk Frank Scott,Jr.,May,
29 APP 'EAS TO LEGAL FORM:
30
31 //!
32 Thomas M. Carpenter, City ttorney
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34 //
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