Loading...
HomeMy WebLinkAboutSponsor - Fashion Wk El Paseo - Food and Wine 2016Contract No. C34950 CITY OF PALM DESERT/SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: CONSIDERATION OF A SPONSORSHIP REQUEST FOR FASHION WEEK El PASEO AND FOOD & WINE FESTIVAL PALM DESERT 2016 AND RELATED EVENT AUTHORIZATIONS SUBMITTED BY: Ruth Ann Moore, Economic Development Manager DATE: January 14, 2016 CONTENTS: 2016 Fashion Week El Paseo and Food & Wine Palm Desert Festival Sponsorship Agreement 2015 Recap summaries for Fashion Week El Paseo and Food & Wine Palm Desert Festival Recommendation By Minute Motion: 1. Approve a sponsorship funding of $75,000 for Fashion Week El Paseo and $75,000 for Food & Wine Festival Palm Desert for a total of $150,000; 2. Appropriate an additional $75,000 from Unobligated General Funds to Community Sponsorships for the Fiscal Year 2015-2016, Account No. 1104416-4306200. Current funding in the account is $75,000 and the additional appropriation will bring the total funding to $150,000; 3. Authorize closing a portion of Larkspur Lane for event staging in April of 2016; 4. Authorize the use of the north side of Shadow Mountain Lane behind The Gardens for valet parking; 5. Authorize waiving of all permit and inspection fees pertaining to the event; 6. Authorize the Mayor to execute the sponsorship agreement and allow the City Attorney to make non -substantive changes. Currently, $75,000 is available in the approved Community Sponsorships Account of the Fiscal Year 2015-2016 budget. Executive Summary Fashion Week El Paseo, coordinated by Palm Springs Life (PSL) celebrated its tenth year in 2015 and now with Hotel Paseo under construction, the event will move to the top of The Staff Report Fashion Week and Food & Wine Funding 2016 January 14, 2016 Page 2 of 4 Gardens parking structure for 2016. The tents will be located on the west side (San Pablo) of the structure. This relocation will allow attendees to use both the first floor of The Gardens parking structure and the parking lot at the Village on El Paseo across San Pablo during the evening events. The request for sponsorship funding of $150,000 for both events is the same as last year. City funds will continue to go toward enhancing the experience at the tents with expanded air conditioning and additional tents for chef demonstrations during the Food & Wine Palm Desert Festival. The sponsorship includes over $189,000 in advertising and on -site display for the City of Palm Desert both before and during the event as listed in Exhibit B of the Sponsorship Agreement. Committee Recommendation The Marketing Committee reviewed the results of the 2015 Fashion Week El Paseo and Food & Wine Festival Palm Desert in June of 2015. The following are highlights of the results for each event. Fashion Week El Paseo • 12,900 attending eight evening fashion events • 44 stores held 75 in-store events throughout the shopping district • Fashion Week garnered a value of over $4.4 million in marketing and media both in paid advertising, printed materials and editorial/news from local and national press. • The economic impact of Fashion Week as calculated by Palm Springs Life is over $3.6 million. Food & Wine Festival Palm Desert • 3,300 attendees, 71 % from out -of -market • 28 celebrity chefs • 8 wine seminars 107 participating wineries • 9 premium beers and spirits • 45 participating restaurants • Over $860,000 in media and marketing coverage • The economic impact of Food & Wine Festival Palm Desert as calculated by Palm Springs Life is $820,844 to the Coachella Valley A more detailed account of the results can be found in the event recap summaries provided with this staff report. Discussion by the committee did include a request that PSL make a stronger effort to reach out to Palm Desert restaurants to participate in the Food & Wine Festival. This has been included in the sponsorship agreement. At the time of the presentation the new location G \Econ Development\Ruth Ann Moore\Fashion Week F&W\StaH Report Fashion Week F&W 2016 doc Staff Report Fashion Week and Food & Wine Funding 2016 January 14, 2016 Page 3 of 4 had yet to be determined and therefore there was no sponsorship request presented to the Marketing Committee. The report was received and filed with congratulations to Palm Springs Life on a successful event. Background Fashion Week El Paseo began in 2006 with three evening fashion shows held in March. The week was strategically picked because it fell between two major events in the valley, the BNP Paribas Tennis Tournament and the Kraft Nabisco LPGA Championship. While not competing with either major event, choosing this week encourages people coming into the valley to extend their stay or come in early and attend the shows and retail events in Palm Desert. Over the years, Fashion Week El Paseo has grown from three evenings to eight days/evenings of special events, both within the tent and throughout stores on El Paseo and is now known as the largest "consumer" Fashion Week event on the west coast. Fashion Week El Paseo is moving to April 2-9, 2016 due to Easter occurring at the end of March. Fashion Week and Food & Wine moved so as not to compete with other national and international shows and the holiday that would divide vendor participation. Fashion Week will return to March in 2017. The Food & Wine Festival Palm Desert has grown in stature and cache through its alliance with the James Beard Foundation. In 2015 after only five years, the event secured some of the top rated chefs in America as named by Food + Wine Magazine including Cat Cora, celebrity chef/author Gale Grand, best-selling author Lulu Powers and Top Chef Miami Brian Malarkey. According to PSL the festival has gained state and national exposure through their relationship with Sunset Magazine and as the title sponsor, the City of Palm Desert is featured in all media and marketing coverage. There have been preliminary discussions with PSL to grow the Food & Wine Festival Palm Desert into its own separate signature event for the City. Now that the event has had five successful years, PSL's desire is to make this the premier food and wine event in Southern California. City staff and PSL are researching the best time of the year for such an event and plan to work with the Hotel & Signature Events Committee to not only plan the event but design hotel packages to increase out -of -area attendance for 2017. As a stand-alone event with its own location, Food & Wine Festival Palm Desert would have the ability to expand to include evening events and other activities such as musical entertainment. Strategic Plan Obiective The Food & Wine Festival Palm Desert contributes to both the Economic Development and Tourism and Marketing elements of the City Envision Palm Desert Strategic Plan. Specifically, event creation contributes to: Priority No. 3 of the Economic Development element —Create and attract G \Econ Development\Ruth Ann Moore\Fashion Week F&=Staff Report FaShion Week F&W 2016 ooc Staff Report Fashion Week and Food & Wine Funding 2016 January 14, 2016 Page 4 of 4 entertainment and events to enhance and expand the Palm Desert economy and lifestyle; and • Priority No. 2 of the Marketing and Tourism element —Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination. Fiscal Analvsis: Fashion Week El Paseo has become a unique, signature event for Palm Desert that is perfectly timed to encourage out of town guests to extend their visit to the City and patronize its shops, restaurants, and hotels. Spurred by the significant exposure that the City receives from its sponsorship via advertising, public relations, and online and direct marketing efforts, these visitors help generate the sales tax and transient occupancy tax revenues that add into the City's general fund. Continuing to expand and enhance the experience of the Food & Wine Festival Palm Desert will also assist in creating a separate signature event apart from Fashion Week El Paseo. Since the clientele are different from Fashion Week it opens the possibility of expanding the festival to both a different location and time of the year and therefore it contributes to the priorities of the Envision Palm Desert Strategic Plan. Staff is continuing to explore the possibility of separating the two events with Palm Springs Life. Staff recommends approval of the above motions. Submitted By: th nn Moori Economic Development Manager Paul S. Gibson, Director of Finance In M. Wohlmuth, City Manager Ir ;�5ax , Martin Alvarez Economic Development Director Rudy Acosta, Assistant City Manager G Tcon Development\Ruth Ann Moore\Fashion Week F&W\Staff Report Fashion Week F&W 2016 doc CONTRACT NO. C34950 SPONSORSHIP AGREEMENT This Sponsorship Agreement ("Agreement") is entered into this 14th day of January, 2016, by and between the City of Palm Desert ("City") and Palm Springs Life (Contractor). The City and Palm Springs Live are sometimes collectively referred to in this Agreement as the "Parties" and individually referred to as "Party." The Agreement is made in light of the following Recitals: RECITALS WHEREAS, Palm Springs Live wishes to create entertainment events entitled "Fashion Week El Paseo" and "Food & Wine Festival Palm Desert" (the Events) to attract residents and visitors to Palm Desert from April 2 — 10, 2016. WHEREAS, the City desires to sponsor the Events through funding a portion of the costs associated with the Events. NOW, THEREFORE, in consideration of the mutual promises set forth herein, and in light of the above Recitals, which are hereby made a part of this Agreement, the Parties hereby agree as follows: AGREEMENT 1. Term. The Term of this Agreement shall commence on January 14, 2016 and continue until April 15, 2016 or upon completion of the Events. 2. Responsibilities of the Parties 2.1 Responsibilities of City. The City shall close off a portion of Larkspur Lane for equipment storage for the week prior to the Events up until a week after the Events as shown is Exhibit A. The City shall post "No Parking" signs on the north side of Shadow Mountain Drive as seen in Exhibit A for valet parking to be provided by the Contractor. The City shall waive all permit and inspection fees associated with the Event. At the City's expense, two (2) moveable, electronic directional signs will be placed at agreed upon locations in the City directing visitors to the Event. CONTRACT NO. C34950 2.2 Responsibilities of Palm Sprinqs Life. Palm Springs Life shall provide all advertising and the promoting of the City of Palm Desert within its pre -event adverting, on site, post -event and online advertising as shown in Exhibit B. Palm Springs Life will make every effort to contact and include Palm Desert restaurants and vendors into the Events, including chef demonstrations in the Food & Wine Palm Desert Festival. Palm Springs Life will make every effort to use Palm Desert hotels for the Events. 3. Compensation. The City shall pay a sponsorship fee in the amount of $150,000. The payment shall be due by February 28, 2016. 4. Remedies and Termination. 4.1 Remedies. The Parties agree to provide each other with written notice of nonperformance, unsatisfactory performance, or any other dispute arising from the terms of this Agreement within ten (10) days of the deficiency or dispute being identified. The Parties shall have thirty (30) days from receipt of said written notice to correct any performance deficiencies. The Parties may mutually agree to extend the thirty (30) day cure period. The Parties agree to cooperate in good faith to resolve any performance issues or dispute arising from this Agreement. Either Party in its sole and absolute discretion may waive a default that cannot be cured. 4.2Termination. In the event any dispute cannot be resolved under these procedures, each Party retains such legal and equitable remedies as it may have under the law to enforce this Agreement. If either Party defaults under this Agreement and does not timely cure such default, the non -defaulting Party may terminate this Agreement upon providing written notice of termination of this Agreement to the defaulting Party, in which case this Agreement shall terminate. 4.3Termination without cause. Either Party may terminate this Agreement upon at least ninety (90) days prior written notice to the other Party. If Palm Springs Life terminates this Agreement, pursuant to this Section 4.3, the City shall be entitled to a pro rata refund of any prepaid amounts. CONTRACT NO. C34950 5. Insurance. Without limiting Contractor's indemnification of City, and prior to commencement of the event, Contractor shall obtain, provide and maintain at its own expense during the term of this Sponsorship Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to the City. 5.1 General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. If alcohol is sold during the permitted activity, coverage must include full liquor liability. 5.2Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident 5.3Workers' Compensation Insurance. Contractor shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City of Palm Desert, its officers, agents, employees and volunteers. 5AUmbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than 4,000,000 that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer's liability. Such policy or policies shall include the following terms and conditions: • A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; CONTRACT NO. C34950 • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; and • Policies shall "follow form" to the underlying primary policies. • Insureds under primary policies shall also be insureds under the umbrella or excess policies 6. Other Provisions Or Requirements. 6.1Insurance for Subcontractors. All subcontractors shall be included as additional insureds under the Contractor's policies, or the Contractor shall be responsible for causing subcontractors to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an Additional Insured to the subcontractors' policies. 6.2 Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of the event. 6.3 Duration of Coveraqe. Contractor shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, his/her agents, representatives, employees or subcontractors. 6.4Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 6.5Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City of Palm Desert and shall require similar written express waivers and insurance clauses from each of its subcontractors. 6.6 Primary and Non-Contributinq Insurance. All insurance coverages shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions. CONTRACT NO. C34950 6.7Additional Insured Status. General liability, Automobile Liability, and if applicable, Pollution Liability, policies shall provide, or be endorsed to provide, that the City of Palm Desert and its officers, officials, employees, and agents shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess liability policies. 6.8Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the event. 7. Indemnification. Palm Springs Life shall indemnify, defend, and hold harmless the City of Palm Desert, its officers, employees, and agents from any and all losses, costs, expenses, claims, liabilities, actions, or damages, including liability for injuries to any person or persons or damage to property arising at any time during and/or arising out of or in any way connected with Contractor's activities under the terms of this agreement, unless solely caused by the gross negligence or willful misconduct of the City of Palm Desert, its officers, employees, or agents. 7.1 Force Maieure. Any delay or failure in the performance by either party hereunder shall be excused if and to the extent caused by occurrence of a Force Majeure. Force Majeure shall mean a cause or event that is beyond the reasonable control of the party claiming Force Majeure. Force Majeure includes but not limited to, acts of God, fires, floods, rain, heavy wind, earthquake, explosions, riots wars, sabotage, terrorism, vandalism, accident, restraint of government, governmental act, injunctions, destruction of site and other like events. In the event City has advanced funds for the sponsorship to the extent not utilized directly for the event any unused portion shall be returned. CONTRACT NO. C34950 8. Notices. Whenever it shall be necessary for either Party to serve notice on the other regarding this Agreement, such notice shall be served either in person, by certified mail, return receipt requested to the addresses below. City: City of Palm Desert Palm Desert Civic Center 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Clerk Palm Springs Life: Palm Springs Life 303 N. Indian Canyon Drive Palm Springs, CA 92262 Attn: Michael Matthews Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 9. Legal Costs. In the event of any legal action between the City and Palm Springs Life arising out of the obligations of the Parties pursuant to this agreement, the prevailing Party will be entitled to payment of its costs and expenses, including its reasonable attorneys' fees. 10.13inding Effect. Successors. Neither Party shall assign or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the other Party, which may be given in such Party's sole and absolute discretion. Any attempt to do so shall be null and void, and any assignees or transferees shall acquire no right or interest by reason of such attempted assignment or transfer. This Agreement shall bind and inure to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns and all of the Parties thereto shall be jointly and severally liable hereunder. 11. Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument which shall be binding upon the Parties notwithstanding that the Parties may not be signatories to the same counterpart or counterparts. The Parties may integrate their respective counterparts by attaching the signature pages of each separate counterpartto a single counterpart. CONTRACT NO. C34950 12. Further Assurances. Whenever requested to do so by the other Party, each Party shall execute, acknowledge, and deliver any further conveyances, assignments, confirmations, satisfactions, releases, powers of attorney, instruments of further assurance, approvals, consents, and any documents that are necessary, expedient, or proper to complete anything contemplated by this Agreement. In addition, each Party shall do any other acts and execute, acknowledge, and deliver any requested documents in order to carry out the intent and purpose of this Agreement. 13. Modifications. All modifications to this Agreement must be in writing and signed by the Parties. 14.Third-Partv Rights. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies. 15. Governinq Law; Choice of Venue. This Agreement shall be governed and construed in accordance with California law, including the Fair Political Practices Act of 1974. Venue shall be Riverside County. 16. Severability. If any provision of this Agreement becomes or is declared by a court to be illegal, unenforceable or void, that clause will be omitted and the remainder of the Agreement will continue in full force and effect. Such holding shall in no way affect the validity or enforceability of this Agreement. 17. Entire Agreement. This Agreement is the entire agreement between the Parties and supersedes any prior or contemporaneous representations, understandings or agreements, whether written or oral. CONTRACT NO. C34950 18. Waiver of Jury Trial. The Parties specifically waive any right to trial by jury in any court with respect to any contractual, tortious or statutory claim, counterclaim or cross claim against the other arising out of or connected in any way to this Agreement because the Parties hereto, both of whom are represented by counsel, believe that the complex commercial and professional aspects of their dealing with one another make a jury determination neither desirable nor appropriate. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first hereinabove written. CITY OF PALM DESERT Robert A. Spiegel, Mayor ATTEST: Rachelle D. Klassen, City Clerk PALM SPRINGS LIFE Micnael Matthews Approved As To Form: Robert Hargreaves, City Attorney G \Econ Development\Ruth Ann Moore\Fashion Week F&MSPONSORSHIP AGREEMENT Palm Springs Life doc Exhibit B Sponsorship Agreement Fashion Week El Paseo 2016 Food & Wine Festival 2016 This sponsorship agreement is made between Desert Publications, Inc. d/b/a Palm Springs Life and the City of PALM DESERT, USA for the exclusive purpose of defining the obligations of both parties in fulfilling the "Title Sponsorship" being purchased for Fashion Week El Paseo and Food & Wine Festival by The City of PALM DESERT (Events.) Under this agreement, Palm Springs Life shall produce Fashion Week El Paseo and Food & Wine Festival PALM DESERT on April 2 - 10, 2016 and provide to the City of PALM DESERT the following benefits. PRE EVENT • PALM DESERT included in all in -and -out of market public relations efforts. • PALM DESERT included on all in -and -out of market print collateral. • PALM DESERT mentioned in all radio ads. • PALM DESERT mentioned in all television spots. • PALM DESERT will receive one full page in the El Paseo Catalogue 2017. • Full page 4 color ad in 2016 Fashion Week Official Program (35,000 copies). • PALM DESERT logo/link on Fashion WeekElPaseo.com and PalmSpringsLife.com for one year. • PALM DESERT logo on all E-blasts sent to 25,000 opt -in subscribers. • PALM DESERT logo on Events ads in the September through April issues of Palm Springs Life. • PALM DESERT logo/link on events ads in the digital page version of Palm Springs Life. ON SITE • PALM DESERT logo on all video screens in the event tents twice in rotation. • PALM DESERT logo will be printed on the "Step and Repeat" for both Events. • PALM DESERT logo on each of the daily Events programs. • Eight (8) reserved sponsor seats to every evening fashion show. • Eight (8) tickets to the Saturday and Sunday Food & Wine events. • PALM DESERT logo printed on the home printed tickets. POST EVENT AND MORE • PALM DESERT logo/link on www.shopelpaseopalmdesert.com. • Recap 60 days after conclusion of event. ONLINE ADVERTISING Four (4) PalmSpringsLife.com creative banner packages - 50,000 impressions each. Valid from March through December 2016. Four (4) PalmSpringsLife.com monthly electronic newsletter ride -along ads, 25,000 opt -in subscribers. Valid from March through December, 2016. Exhibit 8 TOTAL VALUE: $189,000 TOTAL ESTIMATED IMPRESSIONS: 6,048,923 FEE For the rights accorded a Title sponsor of Fashion Week El Paseo and PALM DESERT Food & Wine Festival 2016 we require a sponsorship fee of Seventy Five Thousand Dollars ($75,000) for Fashion Week El Paseo and Seventy Five Thousand Dollars ($75,000) for PALM DESERT Food & Wine Festival. Payment is due February 15, 2016. AGREED Michael A. Mathews Community Relations Director Palm Springs Life Robert Spiegel Mayor City of PALM DESERT, CA Dated: December 29, 2015 Dated: