DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Michael J. Sawaya
COUNCIL DISTRICTS IMPACTED: Council District 2
SUBJECT:
Extension and Third Amendment of Alamodome Advertising License Agreement with Pepsi Beverages Company
SUMMARY:
This ordinance authorizes an Extension and Third Amendment of the Alamodome Advertising License Agreement with Bottling Group, LLC d/b/a Pepsi Beverages Company ("Pepsi") to extend the term for ninety days through February 22, 2014, with up to three additional ninety-day extensions, as a transition period for the City to determine the provision of these services in the future, with estimated revenue to the City during the full extension period of $79,036.00.
BACKGROUND INFORMATION:
Ordinance Number 98468, dated November 13, 2003, authorized an Alamodome Advertising License Agreement with Pepsi, including pouring rights, for an initial term of five years, from November 23, 2003, through November 22, 2008, with a five-year renewal option through November 22, 2013. Pepsi was selected after proposals were solicited from Pepsi and Coca-Cola.
Ordinance Number 2008-11-20-1048, dated November 20, 2008, authorized an Extension Agreement and First Amendment to the Agreement and exercised the five-year renewal option.
Ordinance Number 2011-06-23-0581, dated June 23, 2011, authorized a Second Amendment incorporating the Convention Center due to an expiring agreement between the City and Pepsi for the Convention Center and City golf courses.
Terms of the current agreement with Pepsi include:
* City provides Pepsi the exclusive rights to dispense (i.e. "pouring rights) at the Alamodome and Convention Center, and advertise its products at the Alamodome.
* City provides 10 advertising locations to Pepsi inside and outside the Alamodome, and nine advertising locations inside the Convention Center
* Pepsi pays the City an annual fee of $40,000.00 for the Alamodome and provides all beverage di...
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