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HomeMy WebLinkAboutC38230 McCallum - Funding of ProgrammingCITY OF PALM DESERT STAFF REPORT MEETING DATE: February 28, 2019 SUBMITTED BY: Veronica Tapia, Senior Management Analyst REQUEST: APPROVAL OF CONTRACT NO.c38230 AN AGREEMENT BETWEEN THE MCCALLUM THEATRE AND THE CITY OF PALM DESERT AS IT RELATES TO FUNDING OF PROGRAMMING AT THE MCCALLUM Recommendation That the City Council by Minute Motion 1) Authorize the Mayor to execute Contract No. C3823o an agreement between the McCallum Theatre and the City of Palm Desert relative to funding of programming at the McCallum; and 2) Approve initial $200,000 payment in the current fiscal year and the same amount for the subsequent five (5) years to fund this agreement. Strategic Plan Approval of the Funding Agreement with the McCallum Theatre supports the Tourism and Marketing Priority 4 by utilizing opportunities to partner with existing agencies to promote the Palm Desert brand by participating in local events such as the Choreography Festival. Executive Summary During the 2018/19 budget study session, the City Council identified the McCallum Theatre as an important asset and investment for the City of Palm Desert. Since that time, staff has been working to develop a cooperative effort in both supporting the needs of the McCallum to support its place as an economic driver within the community and providing greater name recognition for Palm Desert. Approval of this funding agreement will provide six (6) annual payments to the McCallum for a total of $1, 200, 000. Background Envision Palm Desert, the City's Strategic Plan, identifies Palm Desert as the "cultural core" of the Coachella Valley. A major component of that identification stems from the programs and events that are performed at the McCallum Theatre. For more than 30 years, the City of Palm Desert and the McCallum Theatre have had a long standing mutually beneficial relationship. STAFF REPORT MCCALLUM THEATRE FUNDING AGREEMENT FEBRUARY 28, 2019 PAGE 2 The McCallum Theatre has established itself as one of the country's finest presenting theaters by audiences, entertainers, and peers alike. Ticket sales consistently place the McCallum in the top 50 theaters in the world. The ticket sales not only provide a revenue source to the Theatre for its programs, but also as an economic driver to the complimentary businesses in Palm Desert. The McCallum has requested financial assistance to augment and improve its programming to provide greater service to the residents and visitors of the City of Palm Desert. In recognition of the City's commitment, the McCallum Theatre will provide certain programmatic requirements as developed by staff and detailed in Exhibit "B" of the agreement. Chief among the benefits to the City is the renaming of an annual choreography festival to "The Palm Desert International Choreography Festival". The marketing associated with this event will help spread awareness of Palm Desert as a destination for arts and culture. Staff recommends approval of the funding agreement between the McCallum Theatre and the City of Palm Desert. Fiscal Analvsis Funding in the amount of $1,200,000 was included within the FY 2018/2019 CIP Budget, Account No. 4004800-4387900. Upon funding approval and execution of the agreement the first payment of $200,000 will be due and payable and the remaining five (5) payments due on the annual anniversary date. This agreement would remain in effect through March 31, 2025. LEGAL REVIEW tilA Robert W. Hargreaves City Attorney CONTENTS FINANCIAL REVIEW Janet Moore ,irector of Finance CITY MANAGER Lauri Aylaian City Manager McCallum Theatre Funding Agreement G vda\Veronica TapiaMord Fdes�.Stati ReportslSR Funding Agreement-2018-19 McCallum Theatre 2-28-19 doc Contract No. c38230 AGREEMENT BETWEEN THE MCCALLUM THEATRE AND THE CITY OF PALM DESERT AS IT RELATES TO FUNDING OF PROGRAMMING At THE MCCALLUM THIS AGREEMENT (the "Agreement") is entered into effective on , 2019, by and between the City of Palm Desert ("CITY"), a California charter city ("CITY") and The McCallum Theatre for the Performing Arts, ("THE MCCALLUM THEATRE"). WHEREAS, the CITY is a charter city organized under the laws of the State of California and its charter; and, WHEREAS, THE MCCALLUM THEATRE owns and operates a theater, and provides a wide range of performing arts programing within the CITY, providing an enormous benefit to the residents and visitors of the CITY; and Whereas, CITY and THE MCCALLUM THEATRE desire to improve, augment and provide stable funding for the performing arts -related programing for the benefit of residents and visitors. NOW, THEREFORE, IT IS AGREED as follows: 1. Purpose. THE MCCALLUM THEATRE will strive to augment and improve its programming to provide even greater service to the residents and visitors of the CITY. 2. CITY'S Responsibilities. The CITY commits to provide one million, two hundred thousand dollars ($1,200,000) in six annual installments, of two hundred thousand dollars ($200,000) each, the first due and payable upon the mutual execution of this Agreement, and the remaining five annual installments due on the annual anniversary dates hereof, provided however, that the city council appropriates annually sufficient funds to pay the installment. The Payment Structure is attached hereto and incorporated herewith in Exhibit "A" to this Agreement. 3. THE MCCALLUM THEATER'S Responsibilities. In recognition of the CITY's funding commitment, THE MCCALLUM THEATER will provide certain Programmatic Requirements as detailed in Exhibit "B" attached hereto and incorporated herewith. 4. Term. This Agreement shall be effective as of April 1, 2019 and continue in effect until March 31, 2025, unless sooner terminated in accordance with the termination provisions set forth hereinafter. Page 1 of 5 72500.00001 \31471457.1 Contract No. C38230 5. Unilateral Termination. Despite the provisions that this contract shall be in force until March 31, 2025, this Agreement may be terminated by either party, with or without cause, at any time upon either party giving ninety (90) days' written notice to the other party of said termination. Upon such notice being properly given, this Agreement shall terminate upon the date specified in the written notice. 6. Relationship of Parties. It is understood that the contractual relationship of the THE MCCALLUM THEATRE to the CITY is that of Independent Contractor; THE MCCALLUM THEATRE is not the agent of the CITY, nor an employee of the CITY. CITY shall not direct the manner in which THE MCCALLUM THEATRE provides its services, but THE MCCALLUM THEATRE shall be responsible for the results achieved. The means by which THE MCCALLUM THEATRE provides the services specified hereunder shall be determined solely by THE MCCALLUM THEATRE. CITY shall exercise no control over the manner and details of performance, the specific hours that any employee of THE MCCALLUM THEATRE may work, who shall be employed by THE MCCALLUM THEATRE or which employee is assigned to any particular function or duties; nor shall CITY provide supplies or tools utilized to accomplish the tasks undertaken by THE MCCALLUM THEATRE. The CITY is not responsible for salary reimbursement or provisions, and grant funds cannot be used to fund any wage, salary or benefits offered by THE MCCALLUM THEATRE. 7. Assignment. This Agreement shall not be assigned or duties hereunder delegated by THE MCCALLUM THEATRE without the written consent of the CITY. 8. Amendment. This Agreement may be amended or modified only by written agreement signed by both parties, and failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel performance of such provision or provisions. 9. Indemnification. MCCALLUM THEATRE shall indemnify and hold CITY harmless, and each of its officers, directors, employees, and agents, and each of their heirs, successors, and assigns against, and shall indemnify and hold parties harmless from any and all claims, costs, liabilities, penalties, damages, or expenses of any kind or nature whatsoever, whether based on negligence or strict liability, including, but not limited to court costs, reasonable attorney's fees, and expenses, whether incurred at trial, appellate, or administrative level, or in connection with any required arbitration, which any such indemnified parties may suffer or incur, or to which any of such indemnified parties may be subjected, as a result of or arising out of this Agreement. Such indemnification, however, is subject to CITY and any other indemnified party claiming the right to be indemnified by providing written notice to MCCALLUM THEATRE of any such claim for damage under this Agreement within 15 days of receiving notice of such claim. 10. Notice. Any and all notices or other communications required or permitted by this Agreement to be served or given to either party shall be in writing and shall be deemed duly served and given when personally delivered to the party to whom it is directed or, in -lieu -of personal service, when deposited in the United States mail, first class — postage pre -paid, addressed to CITY and MCCALLUM THEATRE as follows: Page 2 of 5 72500.00001 \31471457.1 Contract No. C38230 City of Palm Desert Attn: Lauri Aylaian City Manager 73-510 Fred Waring Drive Palm Desert, CA 92260 McCallum Theatre Attn: Mitch Gerhsenfeld President and CEO 73000 Fred Waring Drive Palm Desert, CA 92260 Either party may change its address for purposes of this Agreement by giving written notice of the change to the other party in the manner provided in this paragraph. In Witness Thereof, this Agreement has been executed this , 2019, THE MCCALLUM THEATRE President Date CITY OF PALM DESERT Susan Marie Weber, Mayor Date Attest: Rachelle D. Klassen, CITY Clerk Date day of Page 3 of 5 72500.00001 \31471457.1 Contract No. C38230 EXHIBIT "A" PAYMENT STRUCTURE City shall pay to the recipient progress payments on the following dates, upon satisfaction of requirements referenced in Exhibit B, the following stated amounts for a cumulative total, not to exceed $1,200,000: • Upon execution of documents $200,000 • On the first anniversary of execution date $200,000 • On the second anniversary of execution date $200,000 • On the third anniversary of execution date $200,000 • On the fourth anniversary of execution date $200,000 • On the fifth anniversary of execution date $200,000 The foregoing shall be the only payments made to the recipient during the entire term of this agreement. Page 4 of 5 72500.00001\31471457.1 Contract No. C38230 EXHIBIT "B" PROGRAMMATIC REQUIREMENTS In recognition of the annual contribution, the City anticipates inclusion in the following: • The McCallum Theatre will rename its annual choreography festival the "Palm Desert Choreography Festival" with the intention that the yearly event will grow in stature and reputation until such a time as it is appropriate to change its name to the "Palm Desert International Choreography Festival." Until such time, the name "Palm Desert Choreography Festival" will be used on all printed and online signs, publications, and marketing materials promoting the choreography festival at the McCallum Theatre. Subsequently, the name "Palm Desert International Choreography Festival" will be used to refer to the event on all signs, publications, and marketing materials as long as a choreography festival is held at the McCallum Theatre. Should the McCallum Theatre stop hosting an annual choreography festival, the City of Palm Desert will retain rights to the names "Palm Desert Choreography Festival" and "Palm Desert International Choreography Festival." • It is expected that the Choreography Festival's total annual budget will be increased by not less than $50,000. The budget increase can be accomplished utilizing the annual contribution provided by the City to the McCallum Theatre under this agreement or via other means at the McCallum Theatre's discretion including increased sponsorships, etc. • City will be acknowledged in all marketing materials, including social media activity, as sponsor or co-sponsor at three events: Choreography Festival (sponsor), Open Call (co-sponsor), and Family Fun Day (co-sponsor) as long as the contract is in effect. And that the tagline #pal mdesertwelcomesyou be incorporated. • City Logo be included in the McCallum Brochure/Program that is distributed to patrons three (3) times a year. • City be included in the development of an "instagrammable site" on the McCallum Theatre premises, making the McCallum Theatre (Palm Desert) an instagrammable destination. McCallum Theatre staff will work closely with City Art Staff to determine the most appropriate location, term of installation, and identify a piece that will accomplish this goal. • Recipient will attend City Council meeting to update Council throughout the term of the agreement at such interval as requested by the City Council, but no less frequently than one time per year. Page 5 of 5 72500.00001 \31471457.1