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HomeMy WebLinkAbout2017 PD Chill N Grill BBQ Event - 03-04-2017CONTRACT NO. C35790 CITY OF PALM DESERT SPECIAL PROGRAMS DEPARTMENT STAFF REPORT REQUEST: APPROVE 2017 PALM DESERT CHILL 'N GRILL BARBEQUE EVENT AND SPONSORSHIP SUBMITTED BY: Amy Lawrence, Management Analyst APPLICANT: Palm Desert Area Chamber of Commerce Ms. Laurie Baldwin, President/CEO 72559 Highway 111 Palm Desert, CA 92260 DATE: October 13, 2016 CONTENT: Tentative Map of Fenced Area Tentative Budget Submitted by the Chamber Tentative Sponsorship Agreement Recommendation By Minute Motion, approve the following: 1. Palm Desert Chill 'N Grill Barbeque event at the Palm Desert Civic Center Park on Saturday, March 4, 2017; 2. Temporary waiver to Palm Desert Municipal Code (PDMC) Section 11.01.020 (Hours of Use in City Parks); 3. Temporary waiver to Palm Desert Municipal Code (PDMC) Section 11.01.080 (Prohibited Conduct Generally in City Parks, Item P — Limit Use of Park Amenity); 4. Temporary waiver to Palm Desert Municipal Code (PDMC) Section 11.01.080 (Prohibited Conduct Generally in City Parks, Item Q — Vendor Sales); 5. Temporary waiver to Palm Desert Municipal Code (PDMC) Section 11.01.080 (Prohibited Conduct Generally in City Parks, Item W — Possession/Consumption of Alcohol in City Parks) pursuant to PDMC 9.58.040; 6. Temporary waiver to Palm Desert Municipal Code (PDMC) Section 11.01.100 (Obstructing Pathways in City Parks); 7. Temporary waiver to Palm Desert Municipal Code (PDMC) Section 11.01.140 (Amplified Sound in City Parks); 8. Sponsorship in the amount of $35,000.00 payable to the Palm Desert Area Chamber of Commerce from Account No. 1104416-4306201 — City -Sponsored Events (Contract No. C35790 subject to City Attorney review); 9. Sponsorship of in -kind police services; and 10. Appropriation of $35,000.00 from unobligated General Fund monies to Account No. 1104416-4306201 — City -Sponsored Events. STAFF REPORT 2017 PALM DESERT CHILL `N GRILL BARBEQUE EVENT AND SPONSORSHIP OCTOBER 13, 2016 PAGE 2 Committee Recommendation At its meeting of August 3, 2016, the Palm Desert Hotel and Signature Events Committee unanimously recommended City sponsorship in the amount of $35,000.00 for the 2017 Palm Desert Chill 'N Grill Barbeque event. Strateqic Plan Obiective Approval of the 2017 Palm Desert Chill 'N Grill Barbeque event and sponsorship would help address the following Economic Development and Tourism and Marketing priorities as specified in the Envision Palm Desert strategic plan: - Economic Development - Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle. - Tourism and Marketing - Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year round destination. Executive Summary The Palm Desert Area Chamber of Commerce is requesting approval to hold a Kansas City Barbeque Society (KCBS) sanctioned barbeque event at the Palm Desert Civic Center Park on Saturday, March 4, 2017. The Palm Desert Chill 'N Grill Barbeque would be marketed as the featured "First Weekend" event for the month of March (in conjunction with the Wildflower Festival) and will include professional barbeque competitions with up to 25 world championship teams, novice and kids barbeque contests, live music, beer and wine tasting, vendors, a car show, and a children's activity area operated by the Family YMCA of the Desert. Due to the popularity of competitive barbeque events, the Chamber believes that the event has the potential to grow into a Palm Desert branded signature event and is therefore requesting sponsorship in the amount of $35,000.00, plus in -kind police services, for the inaugural event. While there is no way of knowing exactly how successful this event will be, staff is recommending approval of the sponsorship and in -kind services to move the event forward on a trial basis. Staff will monitor the event closely this first year in an effort to measure quantifiable results. Discussion The Palm Desert Area Chamber of Commerce is proposing to produce a large scale, festival -style, barbeque event at the Civic Center Park on Saturday, March 4, 2017, (event start and end time to be determined - possibly 11 a.m. to 5:30 p.m.) The event would be sanctioned by the Kansas City Barbeque Society (KCBS) which is the largest competitive barbecue organization in the world with over 20,000 members. KCBS is known as the official sanctioning body of competitive barbeque and sanctions over 500 barbeque contests worldwide. Below are specific details of the event: Event will be marketed as March's featured "First Weekend" event. The Wildflower Festival is taking place the same day and will also be marketed as a "First Weekend" featured event. The idea is for cross promotion of both events STAFF REPORT 2017 PALM DESERT CHILL `N GRILL BARBEQUE EVENT AND SPONSORSHIP OCTOBER 13, 2016 PAGE 3 and to encourage the public to come out and enjoy both. Staff does not feel that there will be a conflict in having both events on the same day as each event will appeal to a variety of audiences. • Event area would be completely fenced in as outlined on the attached map. All food, alcohol, and miscellaneous vendor booths will be located inside the fenced area. Fencing off the entire event area would alleviate the need for various fenced in beer gardens within the event space. • The Chamber would charge a minimal entrance fee, somewhere in the area of $2.00-5.00 per person (children under a certain age would be free). Attendees would then purchase their food and beverages. • The car show and children's activity area would be outside the fenced area and open to the public, free of charge. • Entertainment will consist of live music, dance, and various performing arts routines at the amphitheater throughout the day. City staff will be assisting the Chamber with finding the bands to ensure all music is family friendly and will appeal to all ages. • Competitors may start cooking onsite at 11 a.m. on Friday for their food to be ready for the event on Saturday. • The Chamber anticipates several thousand attendees for this event, which may require a shuttle service plan with an offsite parking location to be determined. If City Council approves the event, staff will work with the Chamber and other City departments on all needed inspections and approvals that will be required. Additionally, staff will ensure that sufficient public safety services are provided during the event and that all insurance and ABC permits are in place. Fiscal Analvsis The Chamber has estimated the total budget for this event to be around $66,000.00. In an effort to get the event off the ground for the first year, they are requesting City sponsorship in the amount of $35,000.00, as well as in -kind police services which are estimated at approximately $5,000.00. The Chamber indicated that if the event profit is over $10,000.00, they would give $5,000.00 back to the City. They additionally noted that proceeds from the 2017 event would go towards production of the 2018 event, in turn, reducing the amount of future sponsorship monies requested. Sponsorship funds provided by the City would specifically be used for event insurance, security, fencing, live entertainment, audio/visual services, health department and other related permits, table and chair rentals, food split with cooks, trophies, electricity/solar units, event sanctioning fees, portable restrooms and sinks, trash and recycling receptacles, signage, and other miscellaneous items such as wristbands, tickets, etc. The Chamber will work with local businesses to secure additional event sponsorships to offset other production costs, such as prize money for competitors and media/advertising. With the current popularity of competitive barbeque and microbrew events, this type of event has the potential to draw visitors from within the drive market which could result in STAFF REPORT 2017 PALM DESERT CHILL `N GRILL BARBEQUE EVENT AND SPONSORSHIP OCTOBER 13, 2016 PAGE 4 increased Transient Occupancy Tax (TOT). The Chamber indicated that they are working with various Palm Desert hoteliers on room packages to promote the event. Important to note is that staff has encouraged the Chamber to secure an earlier date with the Kansas City Barbeque Society for the event in 2018 (possibly January or February) in effort to capitalize on the lower hotel occupancy months. (According to the Chamber, March was the only time a sanctioned event could be held in 2017.) Considering the Hotel and Signature Events Committee's unanimous support for the event and sponsorship, as well as the City's Strategic Plan objectives, the Palm Desert Chill 'N Grill Barbeque could be a great addition to Palm Desert's event portfolio. While there is no way of knowing exactly how successful this event will be, staff is recommending approval of the sponsorship in the amount of $35,000.00, plus in -kind police services, to move the event forward on a trial basis so that quantifiable results can be measured for this first-time event. Sponsorship funds in the amount of $35,000.00 to be appropriated from unobligated General Fund monies to Account No. 1104416-4306201 (City Sponsored Events). Submitted By: Amy La ence, Management Analyst Department Head: Frankie R dle, Director of Special Programs Reviewed: Janet Moo gDrector of Finance udy P. Acosta, Assistant City Manager Approved: Lauri Aylaian, City Manager WRAS L,,- ,— - . i , f . , A . . - A P �. .. i k - - 1 I - rn p fr, L-i 1 9:1 I Palm Desert Chill 'N Grill Barbeque Tentiavite Budget Expense Est. Cost Est. Qty. Est. Total Event Insurance $1,000 1 $1,000 Security $1,500 1 $1,500 Permits (Health Dept.) $1,000 1 $1,000 IPorta Potty's/Sinks/Trash $2,000 1 $2,000 f Entertainment (Bands) $1,250 4 $5,000 Table/Chair Rentals (Judges/com $1,500 1 $1,500 Sound $2,500 1 $2,500 Trophies $1,500 1 $1,500 Prize Money for Competitors $10,000 1 $10,000 Marketing* $15,000 1 $15,000 Wristbands/Tickets $500 1 $500 Fencing $7,015 1 $7,015 IT -Shirts - Judges/Volunteers $500 1 $500 ISignage/Banners $2,500 1 $2,500 IFood Split with Cooks $12,000 1 $12,000 I Electricity/Solar $2,000 1 $2,000 IEvent Coordination/Staff Contract $400 1 $400 ISanction Fees $350 1 $350 (Total $66,265 l*Estimated Marketing Budget Breakdown (total included above^ Expense Est. Cost Est. Qty. Est. Total Website $1,500 1 $1,500 Branding (Logo) $2,000 1 $2,000 lPromotionalBrochures 0.15 10,000 $1,500 ITelevision $300 4 $1,200 I Radio $800 $800 Billboard $2,500 2 mo. $5,000 (Social Media $600 5 mo. $600 I E-Blasts $0 25 weeks $0 I Newspaper 4 $2,400 I TOTAL $15,000 Contract No. SPONSORSHIP AGREEMENT DRAFT This Sponsorship Agreement ("Agreement") is entered into this 13'h day of October, 2016, by and between the City of Palm Desert ("City") and the Palm Desert Area Chamber of Commerce (Contractor). The City and the Palm Desert Area Chamber of Commerce 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, the Palm Desert Area Chamber of Commerce wishes to create an entertainment event entitled "Palm Desert Chill 'N Grill" to attract residents and visitors to Palm Desert. WHEREAS, the City desires to sponsor the "Palm Desert Chill 'N Grill" event through funding a portion of the costs associated with the event. 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 October 13, 2016 and continue until March 4, 2017 or upon completion of the "Palm Desert Chill 'N Grill" event. 2. Responsibilities of the Parties 2.1 Responsibilities of Citv. The City shall within its marketing of First Weekend leading up to the March 4, 2017 event promote the "Palm Desert Chill 'N Grill" event in all advertising and public relations efforts. In all other advertising and public relations throughout the 2016-2017 events, the Palm Desert Area Chamber of Commerce will be listed with all other community partners. In - kind public safety services will be provided by the City. 2.2 Responsibilities of the Palm Desert Area Chamber of Commerce. The Palm Desert Area Chamber of Commerce will prominently feature Palm Desert and First Weekend logos in all advertising including all social media, website banners, e-blasts and in -mall displays. The Palm Desert Area Chamber of Commerce will feature Palm Desert and First Weekend in all photo and video opportunities including signage and step -and -repeat back drops. The Palm DRAFTContract No. Desert Area Chamber of Commerce will grant access to all photography and video taken during the event to cross promote on the City's website. 3. Compensation. The City shall pay the Palm Desert Area Chamber of Commerce a total of $35,000.00 no later than November 15, 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. 4.2 Termination. 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. 4.3 Termination without cause. Either Party may terminate this Agreement upon at least ninety (90) days prior written notice to the other Party. If the Palm Desert Area Chamber of Commerce terminates this Agreement, pursuant to this Section 4.3, the City shall be entitled to a pro rata refund of any prepaid amounts. 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 Liabilitv 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 DRAFTContract No. damage, including without limitation, blanket contractual liability. If alcohol is sold during the permitted activity, coverage must include full liquor liability. 5.2 Automobile Liabilitv 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 5.3 Workers' 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. 5.4 Umbrella or Excess Liabilitv 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; • 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 DRAFTContract No. 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 Coverage. 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. 6AAcceptable 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. 6.5 Waiver 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. 6.7 Additional 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. The Palm Desert Area Chamber of Commerce 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 DRAFTContract No. caused by the gross negligence or willful misconduct of the City of Palm Desert, its officers, employees, or agents. 7.1 Force Majeure. 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. 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 73510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Manager Palm Desert Area Chamber of Commerce: Palm Desert Area Chamber of Commerce 72559 Highway 111 Palm Desert, CA 92260 Attn: Laurie Baldwin 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. Le4aI Costs. In the event of any legal action between the City and the Palm Desert Area Chamber of Commerce 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. Bindina 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 DRAFTContract No. 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 counterpart to a single counterpart. 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 -Party 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 Aqreement. This Agreement is the entire agreement between the Parties and supersedes any prior or contemporaneous representations, understandings or agreements, whether written or oral. 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 DRAFTContract No. 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 ATTEST: Rachelle D. Klassen, City Clerk PALM DESERT AREA CHAMBER OF COMMERCE Laurie Baldwin Approved As To Form: Robert Hargreaves, City Attorney