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Borough signs contract with Coca-Cola

For a percentage of sales, only Coke products will be sold at the borough's pool, park and golf course.

For a percentage of sales, only Coke products will be sold at the borough's pool, park and golf course.

March 06, 2003|by RICHARD BELISLE

waynesboro@herald-mail.com

WAYNESBORO, Pa. - The Borough of Waynesboro is officially a Pepsi-free zone.

The Waynesboro Borough Council Wednesday night voted to enter into an agreement with Central Coca-Cola Bottling Co. of Hagerstown for an exclusive drink contract that places Coke machines at the borough's Northside Pool, Memorial Park and municipal golf course. The agreement also means Coke machines will be installed in borough buildings.

In return, the borough will receive 40 percent of the gross profits from sales, an amount that could reach $25,000 a year or more or $150,000 over the length of the six-year contract.

Pepsi, which also proposed a deal, came up short when it offered the borough 30 percent of gross sales, Borough Manager Lloyd Hamberger said.

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Under Coke's agreement, 20-ounce bottles will sell for $1 and 12-ounce cans for 60 cents. Pepsi offered to sell the larger quantity for $1.25, Hamberger said. He said the higher price could mean fewer sales and less money for the borough.

Councilman Clint Barkdoll came up with the idea.

"These are tough times for the borough and we just pulled six figures out of thin air. That's a lot of nontax money. There are no restrictions on how it can be spent," Barkdoll said.

Hamberger said the money, while it will start coming in this year, will be included in next year's budget. He said he didn't know how it will be spent.

"That's up to the council," he said.

Hamberger said $25,000 a year represents about a half mill in taxes.

The deal with Coke could be a start for similar programs, Barkdoll said.

"This may send a message to other companies out there that Waynesboro is open for business, that it's business-friendly," he said.

Barkdoll cautioned Hamberger that once the news of Waynesboro's deal hits, he may be inundated by calls from other municipalities asking about the deal.

According to the agreement, Coke will pay the commissions quarterly and will pay all expenses for the machines it puts in borough facilities.

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