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HomeMy WebLinkAboutClaim No. 547 Artistic Entertainment Services LLC dba Festival Artists WorldwideCITY OF PALM DESERT COMMUNITY SERVICES DIVISION CITY CLERK OPERATIONS STAFF REPORT REQUEST: CLAIM AGAINST THE CITY (#547) BY ARTISTIC ENTERTAINMENT SERVICES, LLC, dba FESTIVAL ARTISTS WORLDWIDE, IN THE AMOUNT OF $71,500 DATE: April 14, 2005 CONTENTS: I. Staff Report II. Claim No. 547 Recommendation: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. Background: Based on a review of the subject Claim and the recommendation of the Claims Adjuster, Risk Manager, City Attorney, and staff, it is recommended that the Claim be rejected. Discussion of this item should be held in Closed Session pursuant to Government Code Section 54956.9(b), potential litigation. Submitted by: RA HELLE D. KLASSEN, CMC CITY CLERK Approved: CARLOS L. OI�'TEGA CITY MANAGER rd k Attachment (as noted) SHEILA R. GILLIGAN, • ' ST. CITY MANAGER FOR COMMUNITY S ICES/P.LO. H:IWPdata\WPOOCSICLAIMS1547-reject staff rpt.wpd THES ONI LAW FIRM March 3, 2005 Coachella Valley Arts Alliance (For Itself, and As Agent for the Cities and Municipalities of Cathedral City; Coachella; Desert Hot Springs; Indian Welis; Indio; La Quinta; Palm Desert; Palm Springs; and Rancho Mirage aka collectively the "Palm Springs Desert Resort Cities") PO Box 4752 Palm Desert, California 92261-4752 Attn.: Darlene Dolan, Chairperson Coachella Valley Art Alliance Tournament of Roses Chair Re: Demand for Payment Dear Ms. Dolan: CITY OF PALM DESERT ASSIGNED CLAIM NO.,5zf7 7 r� t C3 �s © rrfl - < -v rn r c� n m 0 :- 30r This lawfirm represents Artistic Entertainment Services, LLC dba Festival Artists Worldwide ("Festival Artists"). On October 10, 2004, Coachella Valley Art Alliance ("Alliance") entered into a written contract as agent for the Palm Springs Desert Resort Cities to pay Festival Artists the sum of $200,000 to construct a parade float to Alliance's specifications for entry into the 2005 Tournament of Roses Parade. The contract called for payment of $65,000 on 9/15/04; $35,000 on 10/20/04; $35,000 on 11/20/04; $35,000 on 12/15/04 and $30,000 on 1/10/05. The Alliance and Palm Springs Desert Resort Cities received the benefits of the work performed by Festival Artists in creating the parade float. The Alliance and Palm Springs Desert Resort'Cities did not make even one of the contract payments in the full amount when due. Festival Artists is still owed $71,500 for its services in constructing the float on their behalf. 55 S. LAKE AVENUE, SUITE 720, PASADENA, CA 91IOI TEL: 626-683-7600 FAX: 626-683-1199 E-MAIL: surj@sonilaw.com Coachella Valley Arts Alliance, et al. March 3, 2005 Page 2 Festival Artists has been very patient in this matter, but it has a business to run. Festival Artists hereby demands that within five (5) business days the Alliance and Palm Springs Desert Resort Cities pay the balance of $71,500.00 remaining on the contract or make arrangements for payment of the balance due which are acceptable to Festival Artists. If suitable arrangements are not made we have been authorized to pursue legal action to protect the interests of Festival Artists. Very truly yours, THE SONI LAW FIRM By: LEL: dd cc: George Stetler, Mayor, Cathedral City Richard McKnicki, Mayor, City of Coachella Mary Roche, Mayor, City of Indian Wells Melanie Fesmire, Mayor, City of Indio Don Adolph, Mayor, City of La Quinta Robert Spiegel, Mayor, City of Palm Desert Ronald Oden, Mayor, City of Palm Springs Allen Semen, Mayor Pro Tem, City of Rancho Mirage Mary Stephens, Vice Mayor, City of Desert Hot Springs Memorandum City of Paim Desert Office of the Assistant City Manager Community Services Division To: From: Subject: Date: Rachefle D. ICfassen, City Clerk Sheila R. Gilligan, Assistant City Manager for Community Services Payment Demand for 2005 Tournament of Roses Parade Fioat March 11, 2005 Each of the City Councilmembers received a copy of the attached letter. 1 was asked to forward it to the City Attorney, which 1 did. Bob Hargreaves called me this afternoon in response to my memo and advised that we should treat this as a claim and deny it. Please prepare a staff report for the next City Council Agenda. �SHEILA R. ILL AN, A COMMUNITY SERVICE 'T VISION SRG:mpg