HomeMy WebLinkAboutC26170 Production of 2007 PD Art of Food and WineCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: REQUEST FOR APPROVAL OF CONTRACT NO. C26170 WITH
KEMPERSPORTS FOR PRODUCTION OF THE 2007 PALM
DESERT ART OF FOOD & WINE FESTIVAL
DATE: January 25, 2007
CONTENTS: 1. Staff report to the Marketing Committee dated January 16, 2007
2. Draft Minutes of the Marketing Committee meeting of January 16,
2007
3. Proposal from the Marketing & Communications Division of
Kemper Sports Management
Recommendation:
By Minute Motion, approve Contract No. C26170 with KemperSports in an amount not to
exceed $285,000; 2) appropriate $285,000 from the City's Unobligated General Fund to
Account #110-4416-414-3061.
Discussion:
In November 2006, the City of Palm Desert sponsored the inaugural Art of Food & Wine
event, produced by the Desert Springs JW Marriott Resort & Spa. The City's sponsorship
of $100,000 included advertising and promotion of the event.
Organizers set out to provide a high quality art, food, and wine festival, while spotlighting
several of the attractions that make Palm Desert unique, including the Marriott, Desert
Willow, and El Paseo.
The premise behind the event was to begin a tradition in Palm Desert, creating a signature
event that would attract visitors from all over the country. The festival could grow in the
coming years to become a popular destination event. Over the years, City staff has
researched several event concepts, including a Jazz Festival and a Celebrity -game
weekend, none of which were determined to be a "match" for the City. The Marriott, with
the support of Palm Desert and Southern Wine and Spirits, felt a high caliber food and
wine festival could be successful and become a signature event.
The 2006 event was an extremely ambitious undertaking, especially for an organizing
committee comprised of volunteers and sponsors. As with all first-time events, there were
some glitches, and the time commitment for planning, promoting, and executing was much
more than anticipated, resulting in a significant demand on City staff to ensure a positive
result. In the end, attendance fell short of expectation; however, in the wrap-up meeting,
Staff Report
2007 Art of Food and Wine
Page 2
enthusiasm for the event remained high. The City Manager and staff concurred with this
opinion and began investigating how best to build and improve a 2007 Art of Food and
Wine Festival.
Staff met with Marriott General Manager Ken Schwartz and event producer Tammy
Perezchica to discuss the future of the event. All agreed that a dedicated staff was needed
to ensure continuing success of the event.
First, staff explored the possibility of the City creating a team to produce the event
internally. It is estimated that a team of three individuals would be required with a cost for
staffing of approximately $200,000. Recruiting that team would be time consuming, and
the urgency of preparing for 2007 was great.
Subsequently, staff investigated the possibility of hiring a professional management
company that would be directed by the City. By doing so, the City could maintain control of
the event to ensure its quality and reputation. In researching companies with the proper
expertise, KemperSports quickly rose to the top of consideration. The company has vast
experience in event planning and production and is staffed to meet all the needs of this
undertaking. Kemper already has established a positive partnership with the City as its
contract manager of Desert Willow Golf Resort, and it has an established, genuine
enthusiasm and appreciation for Palm Desert.
KemperSports submitted a proposal for the event, and staff has been in negotiations with
Kemper for the last six weeks in an effort to bring to the City Council a contract which will
provide for event management, public relations/advertising, and sponsorship consultation
and sales. Staff believes that KemperSports brings a wealth of experience to the table and
has the ability to attract celebrity chefs, wine vendors, airlines, and sponsors that would not
otherwise be involved.
The Marketing Committee, at its meeting of January 16, 2007, voted unanimously to
recommend to the City Council that the event be continued with the support of a
professional management company. Members commented on the success of the first
event with positive critique for consideration in next year's planning. The staff report and
draft Minutes of the aforementioned meeting are included in this staff report.
By hiring an event management firm, the City of Palm Desert would be investing heavily in
the Art of Food & Wine festival with the anticipation that the event continues to increase in
popularity, provide additional exposure to the City, and bring in additional visitors with the
least amount of impact on staff time.
Staff Report
2007 Art of Food and Wine
Page 3
With a contract in place for the creation of a year -two event, the City will be asked to front
the costs of the event in an amount not to exceed $500,000, which includes the $285,000
KemperSports contract. Growth of the event in ticket sales and sponsorships will be used
at the back end to reimburse the City for these costs. Profits will be placed in a trust
account and used for production of the third event. Staff is convinced that the Festival has
a high value and will become a welcomed, revenue producing tradition for the City.
Staff recommends to the City Council that it concur with the recommendation of the
Marketing Committee to continue the Art of Food and Wine Festival, approve Contract No.
C26170 with KemperSports in an amount not to exceed $285,000 to assume responsibility
for the event organization and implementation, and appropriate $285,000 from the City's
Unobligated General Fund to Account #110-4416-414-3061.
Submitted By:
Marketing Manager
Approval:
Carlos L. O . a
City Manager
u
Sheila R. Gilliga
Assistant City Manager
Aa/1/.4,,
Paul Gibson
Director of Finance
~ITY COUNCIL/ACTION:
APPROVED✓ DENIED
RECEIVED OTHER
MEETIN DATE —+
AYES: ► , 0
NOES: =' 'Wh , ."°Ei' i
ABSENT: ': r
ABSTAIN: I ftilr x -
VERIFIED BY : UJ t r
)riginal on File wi City Clerk's Office
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CITY OF PALM DESERT
COMMUNITY SERVICES
INTEROFFICE MEMORANDUM
TO: Marketing Committee
FROM: Kristy Kneiding, Marketing Manager
DATE: January 16, 2007
SUBJECT: Palm Desert's Art of Food &Wine Event
In November 2006, the City of Palm Desert sponsored the inaugural Art of Food
& Wine event, produced by the Desert Springs JW Marriott Resort & Spa.
Organizers set out to provide a high quality art, food, and wine festival, while
spotlighting several of the attractions that make Palm Desert unique, including
the Marriott, Desert Willow, and EI Paseo.
The premise behind the event was to begin a tradition in Palm Desert, creating a
signature event that would attract visitors from all over the country. The festival
could grow in the coming years to become a popular destination event. Over the
years, City staff has researched several event concepts, including a Jazz Festival
and a Celebrity-game weekend, none of which were determined to be a "match"
for the City. The Marriott, with the support of Palm Desert and Southern Wine
and Spirits, feft a high caliber food and wine festival could be successful and
become a signature event.
Veterans' Day weekend was selected as the prime time to host the event, as it is
an extended weekend for some and traditionally is not a busy time in the Valley.
Additionally, the weather is pleasant, there are no other major events occurring at
the same time, and it was a fit for the food and wine industry.
The 2006 event was an extremely ambitious undertaking, especially for an
organizing committee comprised of volunteers and sponsors. As with all first time
events, there were some glitches and the time commitment for pfanning,
promoting, and executing was much more than anticipated. In the end,
attendance fell short of expectation; however, in the wrap up meeting,
enthusiasm for the event remained high.
Recognizing the event needs professional management if it is to continue, staff
met with representatives from the Marriott to propose pursuing the idea of hiring
a professional management company. The Marriott and presenting sponsor
Southern Wine & Spirits also agreed. By hiring an event management firm, the
City of Palm Desert would be investing heavily in the Art of Food & Wine festival
with the anticipation that the event continues to increase in popularity, provide
additional exposure to the City, and bring in additional visitors. The investment is
approximately $225,000.
Staff recommends continuing with the Art of Food & Wine event with the support
of a professional management company and is looking for input from the
Marketing Committee. This Committee's recommendation will be forwarded to
the City Council.
�'��t�l c�/���-f
Kristy Kneiding C/
Marketing Manager
PRELIMINARY MINUTES
PALM DESERT MARKETING COMMITTEE JANUARY 16, 2007
Upon question by Ms. Bowen, Mr. Peek responded that there was non-stop
service from Portland; however, that service stops during the summer.
Upon question by Mr. Mandelbaum, Mr. Peek responded that the CVA was
working with established destination airlines, i.e., Alaska and American Airlines.
He added that the CVA's program would educate the consumer on destination
demand.
Ms. Kneiding added that the CVA would run print and radio campaigns in those
markets. The difference was that the airlines would not be written a check; the
CVA would be controlling the message.
Upon question by Ms. Bowen, Mr. Peek responded that Palm Desert was his first
presentation. He said he has received a good response from the other cities
and there was a certain level of interest. Although he has not received formal
commitments, he felt strongly that the CVA would secure four cities.
Upon question by Ms. Bowen, Mr. Peek stated that there would be a core group
of representatives from each city. That group would make the recommendation
to either drop a market or shorten flights if all cities do not pa�ticipate. He added
that the Palm Springs Airport was committed to the program and has contributed
its $50,000.
Upon question by Mayor Kelly, Mr. Peek responded that cities that contribute to
the promotion would be included in the packages developed for the program.
Upon question by Ms. O'Flynn, Mr. Peek responded that the measure of success
would be the growth of air service and load factor. It would really be based on 18
to 24 months out.
Mr. Mandelbaum complemented the program and he believed it would generate
long and short-term results.
Ms. Bowen moved to, by Minute Motion, approve staff's recommendation to support the
CVA Spot Marketing campaign in the amount of $50,000. Motion was seconded by Mr.
Mandelbaum and carried 4-0.
C. PALM DESERT'S ART OF FOOD & WINE EVENT
Ms. Kneiding reported that the organizers of the 2006 Art of Food 8� Wine Event
determined that although it was an ambitious undertaking, with predominately an
all-volunteer staff, a 2007 Art of Food 8 Wine Event should definitely take place;
however, it would need to be organized and run by a professional event planning
organization. With Ms. Gilligan's guidance, the future of the event was
discussed, and the decision was made to search for a professional event
management company to take over the organization, marketing, sales,
promotion, and sponsorships of the event. Staff would like the Committee's
recommendation on hiring a professional event management company and/or
any comments it may have on the subject.
3
PRELIMINARY MINUTES
PALM DESERT MARKETING COMMITTEE JANUARY 16, 2007
Upon question by Ms. O'Flynn, Ms. Kneiding responded that the cost of the event
was over $500,000 to produce, and revenues fell short about $150,000. Ms.
O'Flynn believed that was a fairly common outcome with a first time event.
Upon question by Councilmember Spiegel, Ms. Kneiding stated that the dates for
the 2007 Art of Food & Wine Event would be November 9-11, 2007.
Ms. Gilligan stated that the City Council approved the Veterans' Memo�ial, which
will be placed in Freedom Park, and was hopeful that the unveiling of the artwork
would be on Veterans' Day, November 11, 2007, at 11 a.m.
Ms. Gilligan reported that the City was negotiating with Kemper Sports
ManagemenYs Event Division. She could not give the Committee a firm money
commitment, but Kemper Sports was very excited about the opportunity to work
on the 2007 Art of Food & Wine Event and all that that entails. Kemper Sports
represents Palm Desert with Desert Willow and it has earned a reputation and
trust with the City.
Upon question by Councilmember Spiegel, Ms. Gilligan stated that the Marriott
negotiated in-kind contributions for the 2007 Art of Food & Wine Event; i.e.,
rooms and food. Last year the City gave $100,000 for marketing. The Marriott
was excited about participating again but was also in agreement with using a
professional event management company.
Mr. Osgood said Kemper Sports ManagemenYs Event Division was involved with
the following events: Maui Invitational in Hawaii with all of the top college
basketball teams, the Kemper Open, and the Boz Allen PGA Tournament.
Upon question by Ms. O'Flynn, Mr. Osgood responded that Kemper would be
responsible for every detail associated with the 2007 Art of Food &Wine Event.
Ms. Close announced that KCET was interested in bringing chefs to the Art of
Food 8 Wine Event. KCET ran ad airtime to the tune of $130,000 to $150,000
for the 2006 Palm Desert Art of Food 8� Wine Event for free. This year's
promotion will run in the desert, Los Angeles, Orange County, as well as
nationally.
Upon question by Councilmember Spiegel, Ms. Kneiding stated that she heard
that the San Diego Food & Wine Festival was going to be moving to another
date.
Upon question by Ms. Bowen, Ms. Kneiding responded that there would be some
aspects of the event that would change; however, Kemper Sports Management
would have full responsibility for the event planning. She added that there would
be an event on EI Paseo, a golf tournament at Desert Willow, a musical event,
and more.
Ms. Bowen moved to, by Minute Motion, approve staff's recommendation to support
hiring Kemper Sports ManagemenYs Event Division to organize the 2007 Art of Food & Wine
Event. Motion was seconded by Mr. Mandelbaum and carried 40.
4
T H E A R T O F
� FC�aD INE
�U
P A L M D E S E R T
2007 Preliminary Business Plan
Presente�d tio City af Palm Desert
Presentied by K�mperSporls
�
emper� �c�rts
Table af Conb�nts
Executive Summary...................................................................P g 3
ae
Event Overview.........................................................................P g 4
ae
Scope of Services - Event Management Overview...........................Page 9
Scope of Services - Event Marketing Overview................................Page 11
Budget....................................................................................P g 12
ae
Key Business Terms..................................................................Page 12
AF1N-Draft Plan Proprietary and Confidential 2
�
emper�ports
Executive Summary
The City of Palm Desert has the vision to establish a premier food and wine event
benefiting the Palm Desert community that grows over time to become a truly first-class,
signature event—attracting visitors locally, regionally and nationally.
It atso has the desire to create an event that becomes known for being sophisticated yet
not elitist.
In order to realize this vision and create this brand, the City has engaged KemperSports
Marketing & Communications, a professional event management firm. KemperSports is
being charged with achieving the following objectives:
• Develop a signature event that will grow in stature over the long term
• Attract visitors to Palm Desert
• Stimulate business for the City's hotels and merchants
• Generate revenue from ticket sates and corporate sponsorships
• Involve Palm Desert's sister cities
With 27 years of experience in each required functional area, KemperSports is uniquely
able to deliver extensive services to the City of Palm Desert to put the Palm Desert Art
of Food &Wine "on the mapA as a signature event. KemperSports will provide
professionat services in finro key areas:
1. Event management
o Administration
o Accounting
o Operations
o Ticketing
2. Event marketing
o Advertising
o Direct marketing
o Public relations
o Sponsorship sales
The fottowing business plan draft is the preiiminary framework for 2007, which will
provide a foundation for 2008, 2009 and beyond. KemperSports created this plan by
utilizing its past event management experience, examining the lessons from 2006 and
considering the City's long-term vision.
A description of the event elements and a budget projection are contained on the
following pages.
AFYV—Draft Plan Proprietary and Confidentlal 3
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emper�p��rts
Everrt Overview
Featuring a broad range of event elements, KemperSports will ensure that the Palm
Desert Art of Food �Wine 2007 event is appealing to many event-gcers.
In order to make the Palm Desert Art of Food &Wine event valuable to the City over the
long term, KemperSports understands that it will be imperative that the event
consistently benefits local businesses. Starting in 2007, KemperSports will strive to
achieve this objective through participation and marketing opportunities made available
to local businesses through the event itsetf, such as marketing opportunities and
community outreach.
In addition, KemperSports understands the City's desire to create a special place in the
event program for Palm Desert's sister cities, Gisbome, New Zealand and Ixtapa-
Zihuatanejo, Mexico. Utilizing the best results from the 2006 experience and enhancing
the partnership in 2007, KemperSports will incorporate the sister cities into the event
weekend. This may include exhibiting on EI Paseo, participating in The Grand Tasting,
hosting seminars about New Zealand wine and Mexican food, offering vacation
giveaways and more.
Target audiences
The event will reach audiences from:
• Residents of the Coachella Valley
• Regional residents in the San Diego and Los Angeles metro areas
• National corporate event supporters
• Hospitality industry trade professionals from the Valley, San Diego and Los
Angeles areas
The desired demographic make up of potential visitors includes:
• Couples ages 35-65
• Household income $85,000 - plus
• Interest in art, food and/or wine
AFW—DraR Plan Proprfetary and Confidential 4
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Kemper� pc�rts
Preliminary Event Elements
Thursday: Champagne and Chocolate Reception 6-8 p.m.
Friday: A Taste of Desert Willow Golf Toumament 10 a.m.
The Art of Food �Wine on EI Paseo 4-7 p.m.
Festival Concert at Civic Center Park 8-10 p.m.
Sponsored After Party 10 p.m.
Saturday: Art, Food and Wine Seminars 11-11:45 a.m.
Art, Food and Wine Seminars 12-12:45 p.m.
The Grand Tasting 1-5 p.m.
Sponsored After Party 10 p.m.
Sunday: Art Unveiling at Freedom Park 11 a.m.
Art, Food and Wine Seminars 11-11:45 a.m.
Art, Food and Wine Seminars 12-12:45 p.m.
Trade Seminar and Reception 11 a.m. -12:45 p.m.
Wine BBQ and Celebrity Chef-Off 1-4 p.m.
The forthcoming pages of this draft plan highlight the various ticket options and prices of
the multitude of events offered at the Palm Desert Art of Food &Wine. The "anchor"
ticket offer of the festival is expected to be the all-event pass for$595 per ticket. It is
projected that 500 will be sold. More details follow.
Thursday
Chamaa_ane and Choco/ate Reception
Similar to last year's kick-off evening, the Champagne and Chocolate Reception will
retum in 2007. Designed as an attraction to get consumers to arrive in Palm Desert
early before the weekend's nash, this event will also be positioned as a "bonus"to all
who purchase weekend passes by a oertain date. It is anticipated that the courtyard
utilized last year will used again for this year's reception. If desired, the Champagne and
Chocolate Reception could be moved to Friday night.
Projected sales: 50 aQ $50 each + all-event passes
AFW-Draft Ptan Proptietary and Confidentlal 5
Kemper�ports
Friday
A Tast�e of Desert�Ilow Go/f Toumament
Catering to corporate guests and goifers alike, the Taste of Desert Wiilow Golf
Toumament will showcase the Desert�Ilow Golf Resort and provide guests with the
opportunity to enjoy golf, food, and wine al! in one setting. Special golfer treatment will
include gift bags and wine sampling on the course. Those who participate will also get
preferred rates and first opportunity for additional golfing on Saturday and Sunday.
Tickets for this event are available only on an a la carte basis and are not included in
the all-event pass.
Projected sales: 100 spots � $275 (to be discussed)
The Art of Food d �ne on EI Paseo
EI Paseo wil! play host to a lively celebration on Friday aftemoon. lt will feature art
gallery tours, celebrity chef demonstrations and book signings, corporate hospitality,
wine vendors, sister cities exhibits, sponsor booths and more. It is yet to be determined
which and how many blocks of EI Paseo will be closed to traffic.
The spec�c benefrts for ticketed patrons include wine sampling and food for snacking or
palate cleansing. The other components will be available to the public ftee of charge.
Like all events, tickets will be available in advance through the Visitor's Center and on-
site at each location.
Projected sales: 9 00 tickets � $25 + all-event passes
Festfva/Concert at Civfc Center Park
On Friday evening, a live performance will be held at Civic Center Park. The TBD band
will have regional appeal. Concert gcers will have the option to buy a ticket that
includes an upscale picnic box with food and wine sampli�g, plus an actual chair in a
VIP, reserved seating area. Other food and beverage provided by local restaurants will
be available for safe. A hospitality tent will also be assembled for the enjoyment of
event VIP's and corporate supporters.
Projected sales: 750 ooncert-o�ly tickets � $40 + 100 concert and foodhnrine fickets @
$125 + all-event passes
Sponsored Af�er Partv
Although not offered for sale through the Art of Food 8 Wine event, visitors will be able
to enjoy Palm Desert in the evening with lively after parties hosted by one of the event's
sponsors. The event will help such supporters promote and publicize their after party.
AFW—DraR Plan Proprietary and CorHidentlal 6
Kemper��c�rts
sat�rorey
Ar� Food and �ne Seminars
Educational programming about food and wine will be offered at the Marriott. The
number of seminars is to be determined, but could feature art dealers, chefs and
sommeliers from the Valley, Southem Califomia, or even more prominent names from
national locales.
Seminars will run from 11:00— 11:45 a.m. and then from 12:00— 12:45 p.m., offering a
perFect lead-in to the Grand Tasting.
Projected sales: 250 tickets @ $50 each + all-event passes
The Grand TastinQ
Held on Saturday aftemoon from 1:00 — 5:00 p.m. at the Marriott, this will be the main
event of the Art of Food 8�Wine and it will be highlighted by the wine selection and
sampling opportunities.
The Grand Tasting will feature:
• Art displays
• Celebrity chef demonstrations and book signings
• Demonstrations by Palm Desert's sister cities
• Food tastings by the area's best restaurants
• Presentation of a Lifetime Achievement Award (TBD concept)
• Live appearances and demonstrations by celebrity wine and culinary experts
• Wine tastings by Southem Wine 8� Spirits' wineries, a leading event sponsor
Projected sales: 500 tickets � $175 + aN-event passes
Saonsored After Partv
Although not offered for sale through the A�t of Food �Wine event, visitors will be able
to enjoy Palm Desert in the evening with lively after parties hosted by one of the evenYs
sponsors. The event will help such supporters promote and publicize their after party.
AFW-Drait Plan Proprietary and CoMidential 7
Kemper�p�rts
Sunday
Art UnveilinQ at Freedom Park
The 2007 Palm Desert Art of Food �Wine event will support the art unveiling
happening at Freedom Park during the Veteran's Day holiday weekend. This event
component will be available free of charge to the public and will be promoted through
the festival's marketing efforts.
Ar� Food and Wine Seminars
A second day of educational programming about food and wine will be offered at the
Marriott. Seminars will run from 11:00— 11:45 a.m. and then from 12:00— 12:45 p.m.
Projected sales: 250 tickets � $50 each + all-event passes
Trade Seminar and Receation
Running from 11:00 a.m. — 12:45 p.m., this program will cater to hospitality
professionals, including restaurant owners, chefs, servers, etc. A private and excfusive
setting will be offered to these industry veterans. It is expected that this seminar and
reception will provide the perfect locale and draw a talented and knowledgeable
audience that will stay for the Wine BBQ and Celebrity Chef-Off. This event will be a
"net zero°function and will not be held without sponsorship.
Wine BBQ and Ce/ebrftv Chef-Of�
The Wine BBQ and Celebrity Chef-Off will complete the weekend from 1:00 —4:00 p.m.
Once again, to take advantage of economies of scale, ready-made efficiencies, and a
built-in audience, this program will be held at the Marriott. It will feature a variety of
wine sampling and an interactive and engaging celebrity chef-off, wher�e some of the
industry's best will compete to show off their culinary skill.
Projected sales: 100 people � $100 + all-event passes
AFW—Dra1t Plan Proprietary and Confidentlal 8
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emper�pc�rts
Scope ofi sen.ic�es - Everrt nAar�agen�erYt over..iew
KemperSports will work hand-in-hand with the City of Palm Desert and the City's many
service partners to manage the Palm Desert Art of Food 8�Wine event.
KemperSports will:
• Submit financial reports to the City on a monthly basis utilizing a similar
accounting format to the one used at Desert Wiflow
• Use these financial reports in our monthly meetings with City staff
• After the 2007 event is complete, provide the City a post-event financial report
that includes all revenues, expenses and pertinent financial information
• Manage the bidding, negotiating, hiring and accounting for all vendors associated
with the event
• Manage all contract negotiations with vendors, sponsors, entertainment and
other service providers
• Generate and mainta9n all event contracts per the City's established policies and
procedures
Upon commencement of the contract, KemperSports will start a close woricing
relationship with City staff and begin creating the event. This includes the monthly
schedule of tasks and activities {eading up to the November event and brainstorming
ideas that will achieve the City's vision. Once a plan is approved, KemperSports will:
• Oversee site selection for various event activities
• Manage the planning, organizing and implementation all event activities
• Work with the City to deveiop and propose an event pricing structure (� la carte
and weekend package opportunities) for individuals as well as for businesses
and groups
• Collaborate with the Marriott and other travel partners to create event travel
packages and incentives
• Design and print tickets, and propose a distribution and management system for
ticket sales
• Oversee execution of all vendor, sponsor and partner contracts
• Manage staffing and security for all event activities and operations
• Woric with the Marriott and other facilities to improve and coordinate
attendee transportation and logistics
• Provide a 2007 post-�vent operations recap
AFW-Dra1t Plan Proprietery and Confidential 9
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emper� pc�rts
To ensure that the City maintains control of its flagship event and is involved regularly in
the decision-making process, KemperSports will:
• Define measurable goals and objectives to be used as event benchmarks
• Host and manage regular meetings with the City of Palm Desert staff
• Report and communicate on an ongoing basis with the City of Palm Desert
(through phone, email, regular meetings, etc.)
• Submit regular written progress reports
• Conduct monthly in-person meetings or conference calls
• Conduct bi-weekly conference calls beginning three-months prior to event
• Measure program and results post�vent to benchmark successes and
shortcomings and plan for 2008
AFW-DraR Plan Proprietary and ConfideMial 10
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I�emper�pc�rts
sco�e ofi sen.ioes - E.,ent nnarkgting o.►ervi�w
Event marketing and publicity efforts for 2007 focus on four initiatives:
1. Advertising
2. Direct marketing
3. Public relations
4. Sponsorship sales
Advertising
KemperSports will stimulate awareness and drive interest by utilizing various forms of
advertising and marketing collaterals from 2006 and by working with the City's
marketing team or advertising coordinator to:
• Enhance, devetop and promote the web site, www.artoffoodandwine.com
• Create and place print and broadcast advertising
Direct marketing
KemperSports wi{{ create or update a marketing database that wif{target the 2006
attendees and a new and broader audience. It will maintain this database and utilize it
to distribute event marketing materials, including direct mail and e-marketing.
Public nelations
KemperSports will establish the event brand with a publicity campaign before, during
and after the event. This effort will work to generate awareness, build the event's
reputation, and drive attendance.
Sponsorship Sa/es
KemperSports will create and implement a sponsorship sales plan designed to
accomplish two main objectives:
• Generate new sponsorship revenue through both national and local partnerships
• Leverage partners to provide content that enhances the reputation of the event
and attracts positive attention
AF1N-Draft Plan Proprktary and CoMideMfal 11
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emper�p��rts
B��t
FOR INSERTION FROM SEPARATE DOCUMENT
Key Business Terms
• Procurement of professional services from KemperSports (three-year term)
• 2007 staffing and operations: $285,000
• Corporate sponsorship sales: 18% of sponsorships sold, excluding any
underwriting from City of Palm Desert
AF1N-Draft Plan Proprietary and Confidential �2
Palm Desert Art of Food and Wine
Sources and Uses of Funds
Sources of Funds
Cit� Funding_ ---- _. � $ __ 497,788
- - _ _ .___
___._ _ --
--- r
_Corporate Sponsorships---- ----- ---- ___-- ---._ .__ � $—_ __446,800
Ticket Sales ' 000
__. _. __.__ _ ---- -- -- - -$- --.. .475,..__
__ - -
Golf Tournament Sales _ _ � $ 27,500
Merchandise Sales � $ 10,000
--- - __ . ...__ -- --. _-- _---. i .--- ------ —._ __.
Annual Poster Sales � $ 5 000
Total Sources of Funds � a 1,462,088
_ ___.... -- ------. --- --- ----- _ _—____ _
�_ -----
Uses of Funds
General Event � $ 971,484
_.. ___ .. _._ --- _ _ _._ _ . _. .__ _..
Chameagne 8� Chocolate Reception _ � $_ __ 11,345
A Taste of Desert Willow Golf Tournament � $ 44,880
_ _ _. .___. ---- ___.----- -- , ----- _. ---
Art of Food 8�Wine an EI Paseo � $ 62,280
Festival Concert at Civic Center Park __�$_ __ 106,210
_ _. __ —..-- -- - -- __ __--- ___ _ ___.
Grand Tastmg/Seminars/Wine BBQ � Chef-Off � $ _ 165,889
Conti�enc� _ ; $ __ 100,000
-- -- ---- ----. ---- . -- ----- _C--_ _..
Total Uses of Funds i $ 1,462,088
Preliminary Draft 2007 Budget January 18,2007
Pro Forma Projection
2007 Art of Food and Wine Event
REVENUE 2006 Aduds' 2pp7 Budg�t EXPEN8E3
2008 Actu�fs' 2007 Budp�t
Cky Fundlnp = 100.000 t 60A� OMNnd Ev�nt = 6�O�b76 t �71�4d4
�� S 100,000 S - Trode-Media Advertisiny S 246,800 S 246,800
Recydinp Propram S - S 50,000 Paid-Advettising/Marketinp s 245,410 S 255,410
C01pOrwb Sp011tOfihlpi T��� S 4,889 S 10,500
= 371,500 : 4�6,Q00 Web site i - S 7,500
ree-cor�cat s - s zs,000 s�r�e-op.►auor,.a�enss. s - s sas.000
TiUe-Grand Tasting S 50,000 S 50,000 Corpora6e Sponsorahip Commisalon S - S 80,424
Title-Golf Toumament S - S 15,000 Mernhandiee-saba/uniformManysrds S 803 S 12,600
Art d Food 8 Wine o�E!Paaeo E - S 15,000 Mercha�di�e-Gift Baps S - S 27,500
�E���s 3 80,000 S 95,000 Stationary/pesipn S - S 4,000
W�� S 15,000 S - Spnape-General S 12,560 E 12,500
Trade-EquipmenUFBB a - i - ShippinplSurvey/ORica/CredR Cerd Feea S 1,038 t 10,050
Trede-Media Advertising S 2�6,800 S 248,800 Radioa/Mobib Phones S - S 3.200
���� V'ideoprepher/Photoprapher S 8,128 S 13,500
= 10.f,616 : 476,000 Inaurance S 947 E �,000
Muld-Event Pass S 32,500 S 297,500 Memorial Unveilinp i - S 1,500
Champepne 8 Chocdete Receptlon" S 1,750 S 2,500
Concert-Generel Admiaaion S 13,440 S 30,000 Ch�111p/QIN a Chp�p{�b Rlq�ql = T,3� = 11,ub
Conceit-VIP" S 33,250 S 12,500 EnterbinmeM i - i -
Art of Food&Wine on EI Paseo E 5,250 S 2,500 Equipmerk Rental S 7,345 S 7,345
Grand Tasting^ s 13,800 E 87.500 HospMelity F88 S -
- a
Seminara^ S 2,575 S 25,000 Security/StelF S - S 1,000
Seminaro-For the Trade i - S 7,500 Sipnape/PriMinp S - S 3,000
Wine BBQ/Chaf-0A^ S 1,050 S 10,000
�ioHTou�n�M : 3a,16t i 4�,Ba0
OOK Tourn�ITM1k B�Nt : 6,000 = 27,D00 Gol/Courss Fee S 21,600 S 22,680
Fouraome Fees S 5,000 S 27,500 Food& Beverape S 3,322 E 5,200
Merc;handise/Prtzes S 12,571 S 12,500
����8�� : - = 10,000 Sipnape/Printinp S 676 S 2,500
Equipment rontels S - S 2,000
Mnwl Posbr SaNs i - i b,000
Art of Food d�Wln�on EI Pallo = 11,311 : 62,280
Revenue Tota� t �ti = 1Ai�;,'00 F8B-SWS&reataurant trade s _ $ _
F88-peid a soo a soo
Equipment a 17,862 E 25,890
Refuse Removal S 5,533 a 6,500
5�4��P��b�fl 5 2,782 3 10,000
Enterteinment S 9,050 S 10,000
Stefl/Securily/Pdice S 5,586 a 9,590
C�� : 84,198 : 108,210
Entertainment S 44,315 S 49,960
Equipment S 19,387 S 18,500
Reiuse Removel 3 - S 2,950
Hospitality F8B• a - a 21,000
���Y�S� S 496 E 10,800
Sipnape $ - a 3,000
Orand Taatlnp/8�mliarsMlln�8B4 i 88�E22 i 1a6�889
Tabnt a s,s�s a 2e,000
Food&Beverape a 29,248 a 57,970
Equipment Rental S 38,580 5 49,919
Equipment-Glasses a - a -
Equipment-Kkchen Aid a - a -
Sipnape S 8,575 5 12,500
Entertainment S - S 5,000
��rnY/S�ff S 1.254 S 1,500
M�� S 8,146 3 11,000
���Y : - i 100�000
Expsnse Totsl ; 761,221 = 1.162,088
'as provided by the City d Palm Deaert ( �
"Induded in the Weekend Packape ��
Note:AasumpUona noted foNowinp pspe
Preliminary Dra}t 2007 Bixlpet
Jarxwry 1B.2007
2007 Budgetary Assumptions
1 Donated wine expenses are not reflected in the above accounting
2 Donated food expenses are not refleded in the above accounting
3 Donated talent time and travel expenses(fess hotel)are not reflected in the above accounting
4 Donated Kitchen Aid dispiays and Oneida giasses expenses are not reflecied in the above accounting
5 Donated Kitchen Aid barbeque equipment for Chef oifi is not refleded in the above accourning
6 Concert moves to Civic Center
7 Approval of drinking within secured tidcet holder area at Civic Center for c�ncert is assumed in the above
8 Expense for concert wine bag has been created for concert weekend pass attendees and VIP concert buyers
9 Expense for souvenir gift bag has been aeated for weekend pass attendees
10 Expense for souvenir merchandise has been created for sponsors
11 Event insurance e�enses are not refleded in the above aocourrting
12 Donated d�cor expenses are not refleded in the above accouMing
13 Donated Marriott fundion spaoe expenses are not refleded in the above accourrting
14 Concert talent expense is consistertt with 2006
15 Donated local restaurarrt F&B expenses for the golf toumament are not reflected in the above accounting
16 Assume annual poster sales are event revenue
17 Annual poster artist time and original ariwork are not refleded in the above aa:ouMing
18 Limited visual changes for web site in 2007 in order to keep costs down
19 Ciry empbyee co�sui�ng time is not refleded in the above aocourtting
20 Donated F8B e�enses fot the champagne chocolate reception is not refleded in the above accounting
21 Indudes 5246,800 is soft doNars for media trade
22 Event logo wiH stay the same in 2007
23 Sister aties'expenses are not refleded in the above aocounting
24 City to make available KSM oft'ice space at the visitor center
25 City to make availab{e storage space for reusable event items
26 Expenses from 2006 are accurate and complete to use as a foundation for 2007 projections
Preliminary Draft 2007 Bucqet January 18,2007
Revenue
C Lino foam 2006 Actuals 200T Nobs
Ci Fundf $ 100 000 3 50 000
General $ 100,000 $ - of Palm Desert
Re din Pr ram $ - $ 50,000
orate nsorshi s S 371,800 S 418 800
Tftle-Concert $ - 3 25,000 new s nsor
Title-Grand Tasti $ 50,000 $ 50,000 Marriot Vacation Club
TiUe-GoH Toumament $ - $ 15,000 new onsor
Art of Food 8 Wine on EI Paseo $ - $ 15,000 new s onsor
All Events $ 60,000 $ 95,000 Padfic Westem,MceUHennessy,
Guiness,Sk ,VOS Water
Wineries $ 15,000 $ - 80 wineries
Trade-E ui menUF&B
Trade-Media Advertisin $ 246,800 $ 246,800 KCET- blic tv
Ticket Sales S 103 615 475 000
Mutti-Event Pass $ 32,500 $ 297,500 500 passes to ail"wine/conceR"events;
$595/ticket
Cham ne 8 Chocolete Rece tion" $ 1,750 3 2,500 50 tidcets;$50fticket
Concert-General Admission $ 13,440 $ 30,000 750 tldcets;$40/ticket
Concert-VIP" $ 33,250 $ 12,500 100 people;$125/tix;picnic boxes,
beverage access,chair access(chairs
will sit on knoll with tents setup on
"other side")
Art of Food 8 Wine on EI Paseo $ 5,250 $ 2,500 100 tidcets;$25ttidcet
Grand TasUn " $ 13,800 $ 87,500 500 tickets;$175/tidcet
Seminars" $ 2,575 $ 25,000 500 ddcets;$50/seminar
Seminars-For the Trade $ - $ 7,500 must have sponsor funding in order to
do
Wine BBQ/Chef-Off" $ 1,050 $ 10,000 100 tickets;$100/tidcet
Gotf Toumament Sales 5 000 $ 27 500
Foursome Fees $ 5,000 $ 27,500 100 s ots;$275/s ot
Misc $
Merchandise Sales S - S 10,000 500 t-ahkts;S20/shiR;allocate to
unh/er8itie8 to sell/teke net
Annual Poster Selea S - $ 5,000 t50�100 sold
REVENUE bd0 416 1 01 �00
"Induded in the Weekend Padcage
Preliminary DraR 2007 Budgat January 18,2008
Expenses:General Event
LJ�M 260{
Tnds-MIs6� 216 000. ?A6 .00
KCET tv 58 300.00 60 300.00 d vatious rams-Novembx
KCET N 188 600.00 S 188 500.00 u d v�riw� rams-October
Paid- / ?A5110.0� 2b6110.00
Daaa�t Sun S 16 908.00 1 E 908.00
PaYn Li(e 38 889.00 i 38 869.00 ads
KTK i 18 17b.00 18 175.00
u 30�s3.00 s 30�s3.00
�.c �04�so.00 �04�eo.00 ae
FuA S 25 248.00 25 248.00
Crsdlve S 13 9.00 S 13 9.00 Piiflt Mafk
Tiokef ' / s 10 000.00
T ��Y.1 1 .00 or ARY?
shWtls 4 889.15 S 3 500.00 F
�+� i 3 500.00
�I+ums i i 3 500.00
VWb dM 7 600.00
6 500.00
� S 1000.00
i 2a5 000.00
•0 424 00
�- .00 1 .00
R TMnO 1 SOO.00
T-slwts i 803.00 3 000.00
U►�Morms i 4 350.00 75 ahhb;100 vdunteer t-aMrts
EI P�Mo 500.00 tsntAaDlsl etc
Grand T i i 500.00
C«�osA Salss S 500.00
L.en i t 2 250.00 i2.25 .10001otal
�-� 27 .00
Gft S 20 000.00 'S00 w�sekend
� i S 7 500.00 for ,fiisnds d evsnt,eta
� 4
Tirne-MNc i 500.00 eartis n�s in 2006
Lellsihsed 750.00
*10 750.00
Labels 500.00
Tlwik Caids t 500.00
Crsdenti�h S 1 000.00
-Ornawl shM burw� 1 5A0.00 1 600.00
Weel D�s 7 813.00 7 500.00
miec 4 747.00 i 5 000.00
FaM t .00 10 060.00
sur l 038.00 i 1 b00.00
-Tidcels S 1 000.00
-AMec i i 3 500.00
/Pd Setvice 2 500.00
Of6ce 750.00 oneke al Martiotl, donMed AAertbtl
ine i 550.00 Yns s
dsslc AAarrioft i i 250.00
��� S
Onske radios!ce�s 3 .00 40 580/radio
� 01 00 t3 500.00
6 17Q.00 i 10 000.00
1 950.00 3 500.00
� 94T.00 1000.00
IIA�moiid 1500.00
EVE/ff p� f1� t6 t71
wewr�rwy orart 2007&+Ao� Jerx,riy 1 e.2007
Expenses:Champagne and Chocolate Reception
L��n 2006 Acd�ls 2007 Nol�s
�t S i 08 adual
E RerMel S 7 345.00 7 34b.00
F8B S food iu�d wine donateA
/� S 1000.00
T�� S 1,000.00 ,ushers,volunteers
� i 3 000.00
CHAYP/IONE d�CHOCOLATE RECEP'T10N EXPEN�EE 7 3�6.09 11 346.00
Preliminary Draft 2007 Budget January 18,2007
Expenses:A Taste of Desert Willow Golf Toumament
Llna tbm 2006 Actuwb 2007 B Nobs
GoIF Course Fee S 21 600.00 S 22,680.00 donaUon for rounda and carts?
Food& Be S 3 321.50 S 5,200.00
Buffet Breakfast $ 3,321.50 $ 5,000.00
Water for la rs 3 - $ 200.00
MerChandise/Prizes S 12 570.58 S 12 500.00
Pla r ift ba $ 10,720.58 $ 9,000.00 $90/ba ; 100 ba s
Hole in one challe e $ g50.00 $ 2,ppp.pp
Awards $ 1.000.00 $ 1,500.00
S na /P�intl S 878.00 S 2 500.00 s ,holes,directional
E ui rentals tents S - S 2 000.00 to be usad ffi holes
GO�F TOURNAMENT EXPENSES 38168.08 880,00
Assuming use of one golf course; 100 people per course
Preliminary DraR 2007 Budget Jaunary 1 S, 2007
Expenses:The Art of Food and Wine on EI Paseo
tiM MMn 200d Acq�ls �007 Nobs
F8B-S'WS b reatatrerri Vade = -
F8B- i 500.00 i 500.00
F&B S - S - bread,d�eese and wine to be donated
ice S 500.00 S 500.00
E i 1T 862.A8 i 25 690.00
Terrts S 4,878.38 Z 5,000.00
Tables/chairs 2,020.00 S 3,000.00 ior use at alleries
Vtx�c rental S 839.75 S 1.000.00
diem S 1.514.35 S 1.750.00
White /0'e1Rs = 1.472.00 : 1.750.00
Wine Glass hokJedglass S - S 4,000.00 ��R?�'DONATED BY
Na ucts S S 1 500.00 with eve�t o?
S 1.500.00 S 1.500.00
a�ao s z.,so.00 a z,,so.�
� _ = control of Vaftic lights7 Assume free by
reen S 3,648.00 3 4,000.00
Retwe Removal S 5 533.00 6 500.00
T�aah bins S - S 500.00
Trash ' S - S 2,000.00
Crew S 5,533.00 = 4 000.00
� i 2 781.70 10 000.00
Signage s 2.200.00 S 5.000.00 ��:��:entranoe;banners,
,etc.
S - i 2,000.00 and des' n
rwrismana s sa�.�o s �,soo.00
sme s - s ,soo.00 5o n«,B
e� s e.oso.00 s �o.000.00 `g"°�perto�ne�s,nower can.�
Sfaff/ /Poic�s 5.588.00 9 590.00
S - S 4,000.00 id StaH
S 5,586.0o S 5,590.00
THE ART OF FOO�i WII�ON�PAaEO 41 i.1i 00
Preliminary Draft 2007 Budqet January 18,2007
Expenses: Festival Concert at Civic Center Park
l.im Z006 Acq�ls 2007 Noe�s
E� i 44 3t4.98 49 960.00
Muaic 8 ' fee S 25 000.00 S 25.000.00
Audio S 17 270.00 $ 19.�60.00
Travei:ai� diem S 894.44 S 4,000.00 Trade?
F8�8 S 1.350.52 S 1.500.00 In 06. Desert Willow
19 388.88 i 18 300.00
Chelrs S 4,470.21 S 4,200.00 STlcharc;600 raded chairs
�'leater3 S - S 1.200.00 s40/eaCh;30 heateB
Tables/Linens i 500.50 S 600.00
TerNs S 5.218.00 S 4 000.00 1a10z10x8'festivel ca
s �.3so.00 s ,.000.00
Gen�etaNmiac i 5.038.17 S 4.500.00
Dbcor:Moon S 2,800.00 S 3.000.�
i - S - ' U�at au its are tree
Retuse Renwval 2 950.00
Portable Toiets S - S 750.00
Trash bina S S 200.00
T►aah S - S 1,000.00
c c,�ew s - s +000.00
H Fd�6' 21000.00
S - S 21.000.00 i30lpicr�ic box;wine to be donated;
essume 700(weekend passes,VIP
Ucketa,sponsors)
�� S 498.00 s 10 800.00
Barricades� S 496.00 S 1.500.00 alao indudes setu
wr�anas s - s ,,000.ao �or �
s - s �.soo.00 ,�,sr,ers
Fvst Aid/First R S - S 800.00
S S 3 000.00
FE8TNAL CONCERT AT CIVIC CElfTER PARK EXPQISEE 1�7.it 106 0.00
•General oonoession nevenue or e have not been
Prelimi�ary DraR 2007 Budpet January 18,2007
Expenses:
Art,Food and Wine Seminars
The Grand Tasting
Wine BBQ and Celebrity Chef-Off
LNr Iwn 2006 Aeaals Z007 Nobs
Talent s 3.819.42 S 28.000.00
kers S 20 000.00 4 national,4 ional,4 local taleMs
Travel 3819.�2 S 8 000.00 ass�xnes Martiott donetes rooms
Food 8 i 29 48.00 t 57.970.00
�ce s soo.00 s soo.00
V1fine Cha -BBQ S 5�0.00 S - wine to be donated in 2007
Food S 7,800.00 S 35.0OO.Op more in 2007:costs u
Wine Cha s 5,438.00 s - wine to be donated in 2007
Trade Restaurant S 11.970.00 S 11.970.00
Seminar for Trade S - S 7,500.00 if alanced in rev
Hos ' Suke tood S 3.000.00 S 3,000.00
ReMal = 38,5T9.T9 i 49,g19.25
Misc holel S - S 4.000.00 easics,ebcxrical ca'dS.unknowns
seednar Materia S - E 1.000.00
s - s - �,s�de a o�cs�de.snoWa ee rree
terrts w�h S 18.055.86 S 15,700.00
tabfeartiner►a/chaYa S 4 550.OQ S 7.500.00 Maniott to vide in trade9
nenial s 4,321.26 S 4,500.00 Martiott to ide in trade?
� � and dra S 5 258.00 S 5,400.00 Martiott to vide in trade?
Uvdc� S 432.25 S 500.00
ins�x8noe/ ! diem S 1.563.97 S 1.700.00
/ S 1.987.00 S 2,000.00
AV S - S 3,000.00 tvslm' sound s tems
Fk�bes S 119.25 S 119.25
4284.2 S 4,500.00
-Glatses
-Kitd�en Aid Two Idldiens TRADE
ontMe S 8.575.00 i 12.50�.00 �,e�dwbilors ,etc.
oneRe S 8,575.00 S 12,000.00
s - s soo.00
Er�inment i i 5.000.00
/Staft i 1.254.00 i 1.500.00
s ,.��.00 s ,.soo.00
�sc s e»e.00 s »,000.00
r,c�decaroaaons a 8.,4s.00 s 8,000.00
senAation S - S 1.000.00 hash bins dea crew,etc.
v�dation for uests S - S 2.000.00 to t com or reduoed in trade
�iRAND TA8T1 8BG i CHEF-0FF EXPEf�E8 i A22.21 1 pl�25
Preliminary DraR 2007 Budpet January 18,2007
Contract No. C26170
PROFESSIONAL SERVICES AGREEMENT
This PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made as of this 25th day of
January, 2007 by and between the City of Palm Desert(the "City") and Kemper Sports
Marketing, Inc. ("KemperSports").
WHEREAS, the City desires to establish a food and wine event benefiting the Palm Desert
community to be called the "Art of Food and Wine" (the "Event"); and
WHEREAS, KemperSports is engaged in the business of, among other things, event marketing
and operations,public relations, hospitality, sponsorship sales and marketing services; and
WHEREAS, the City wishes to exclusively retain the services of KemperSports in developing,
managing and coordinating the Event, upon the terms and conditions set forth herein.
NOW, THEREFORE, for and in consideration of the mutual covenants, promises and
agreements herein contained, that parties hereto agree as follows:
1. Appointment. The City hereby retains, engages and appoints KemperSports to perform the
Services in connection with the Event during the Term, as more fully described herein, and
KemperSports herehy accepts such appointment subject to the terms hereof.
2. Term. The initial term of this Agreement shall commence as of January 25, 2007 (the
"Commencement Date") and shall continue through December 31, 2007 , covering the 2007
Event , unless terminated or extended in accordance with this Agreement (the"Term"). The
Term shall automatically renew for two successive one-year periods covering the Event for the
years 2008 and 2009 as long as (i}the City Council has approved the Event for the following
year, (ii) funding is available to the City for the following year's Event, and (iii) KemperSports is
not in default under the terms of this Agreement. Such renewals shall be automatic unless the
non-renewing party shall provide written notice to the other party of its intention not to renew for
the reasons stated above at least sixty (60) days prior to the expiration of the then-current Term.
The Professional Services Fee to be paid to KemperSports during each renewal period shall be
automatically increased by five percent (5°l0)upon the anniversary of the Commencement Date,
unless the parties otherwise agree in writing. Except as otherwise specifically provided herein,
termination of the Agreement shall not relieve the parties of any obligation accruing prior to such
termination. In that regard, such termination shall not relieve the City of any obligation or
liability with respect to contracts entered into by KemperSports for products or services to be
provided to the City in accordance with this Agreement
3. Scope of Services. During the Term, KemperSports shall provide the City with the following
services (collectively,the "Services"):
(a) Event Mana eg ment. KemperSports will work with the City and the City's
representatives in managing the Event. In connection with such event management,
KemperSports shall oversee and coordinate the Administration, Operations, Ticketing, Internal
Contract No. C26170
Communications and Marketing in connection with the Event. These Services are described in
more detail on Exhibit A attached hereto.
(b) Public Relations. KemperSports will create a three-part public relations plan for the
Event that will include Pre-Event Publicity, Event Publicity and Post-Event Publicity. These
Services are described in more detail on Exhibit A attached hereto.
(c) S�onsorship Consultation and Sales. KemperSports will work with the City to develop
a sponsorship program for the Event. Such sponsorship program will then be implemented by
KemperSports. These Services are described in more detail on Exhibit A attached hereto.
4. Annual Plan.
(a) Preparation and Approval. KemperSports shall submit to the City on a date agreed
upon by the City and KemperSports, the annual plan (the "Annual Plan") for the scheduled
Event. The Annual Plan shall include an estimated operating budget and an initial estimated
budget of Event Expenses for the scheduled Event (the "Event Expense Budget"). "Event
Expenses" shall mean all expenses to be incurred in connection with the Event and shall include,
without limitation, any Event programming activities, concert production costs, food and
beverage, graphic art and illustrations, printing and reproduction, web page construction and
hosting, typography, audio-visual and video production, photography, gifts, media and
promotional advertising, vendor procurement, and tent design and procurement costs, etc. The
Annual Plan shall also include the marketing and business plan for the scheduled Event.. The
Annual Plan shall be prepared with the advice and counsel of the City, based on what
KemperSports believes to be reasonable assumptions and projections. KemperSports shall not
be deemed to have made any guarantee or warranty in connection with the actual expenses
and/or results of operations or performance set forth in the Annual Plan since the parties
acknowledge that the Annual Plan is based solely upon KemperSport's judgment and the facts
and circumstances known by KemperSports at the time of preparation. The Annual Plan shall be
subject to the prior written approval of the City, which approval shall not be unreasonably
withheld. The City agrees to examine the Annual Plan submitted by KemperSports and it is
contemplated by the parties that the Annual Plan will be agreed upon by the parties not later than
30 days after such plan is submitted.
(b) Unanticipated Expenditures; Quarterlv Review of Annual Plan. City agrees that the
Annual Plan is intended to be a reasonable estimate, and, accordingly, will need to be revised
from time to time to cover any expenditures that were unanticipated at the time of prepa.ration of
the Annual Plan but are reasonable and necessary to carry out the provisions of this Agreement.
KemperSports shall meet not less frequently than quarterly with the City and discuss the Event
and the Annual Plan, and the parties shall agree upon any amendments or revisions to the Annual
Plan to take into consideration variables or events that did not exist, or could not be anticipated
by KemperSports or the City, at the time the Annual Plan was prepared. Any material
amendments or revisions to the Annual Plan shall be subject to the prior approval of the City.
5. Compensation. During the Term, the City agrees to pay KemperSports for the Services as
follows:
2
Contract No. C26170
(a) Professional Services Fees. KemperSports shall be paid an annual professional services
fee of Two Hundred Eighty Five Thousand Dollars ($285,000) (the "Professional Services Fee"),
which fee shall be paid in equal monthly installments no later than the first day of each calendar
month, and which shall be adjusted during any renewal terms in accordance with Section 2
above.
(b) �onsorship Sales Commissions. KemperSports shall be paid eighteen percent(18%)
of all sponsorship sales revenues (the "Sponsorship Sales Commission"). KemperSports shall
receive the Sponsorship Sales Commission for all revenues during the entire term of the relevant
contract with the sponsor, regardless of any earlier'expiration or termination of this Agreement.
In the event products or services are provided by sponsors in exchange for other products or
services, KemperSports will submit a suggested retail value of such products or services to the
City for review and approval as the sponsorship sales revenue. The Sponsorship Sales
Commission shall be paid to KemperSports within thirty (30) days after the end of the Event for
all sponsorship sales revenues collected. Thereafter, the City shall pay KemperSports the
Sponsorship Sales Commissions for all remaining sponsorship sales revenues within thirty (30)
days after collection thereof.
6. Pavment; Event Accounts
(a) KemperSports shall invoice the City on a monthly basis for all Professional Services
Fees owed pursuant to this Agreement. The City shall pay all invoices within thirty (30) days of
invoice date.
(b) The City shall provide funds to KemperSpoRs for payment of the Event Expenses (the
"Fundings"). The first Funding shall be made upon the City's approval of the initial Event
Expense Budget and shall equal fifty percent (50%) of the total of such initial Event Expense
Budget. The second Funding shall be made on or before three months prior to the Event and
shall equal the remaining amounts necessary to make the total Fundings equal to the then-current
total Event Expense Budget. If the Event Expense Budget is thereafter materially increased and
such increase is approved by the City, the City shall make additional Fundings as necessary to
cover the additional budgeted Event Expenses. Upon conclusion of the Event, KemperSports
shall provide the City with a post-accounting of receipts and expenditures, and shall reconcile
between actual Event Expenses versus Fundings paid by the City. Any amounts owed by either
party after such reconciliation shall be paid within thirty (30) days after conclusion of the
reconciliation. Any amounts owed to KemperSports may be made directly from the Deposit
Account described below.
(c) KemperSports shall establish, at a banking institution reasonably approved by the City,
the following bank accounts for the Event: A deposit account(the "Deposit Account") and an
expense account (the "Event Expense Account"). KemperSports shall deposit in the Deposit
Account all monies received from the operation of the Event. All Fundings from the City shall
be deposited into the Event Expense Account and used for payment of the Event Expenses.
Upon prior approval of the City, KemperSports may transfer funds from the Deposit Account to
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Contract No. C26170
the Event Expense Account. Payment of the Professional Services Fees may be made directly
from the Event Expense Account or the Deposit Account.
7. Indemnification.
(a) Bv the Citv. The City shall defend, indemnify and hold harmless KemperSports, its
affiliates and each of their shareholders, officers, directors, employees, representatives and
agents against any and all liability, claims, demands, damages and costs of every kind and nature
(including,without limitation, reasonable attorneys' fees and court costs) actually or allegedly
resulting from or connected with the Event and/or KemperSports' performance of the Services in
connection with this Agreement, except to the extent caused by the breach by KemperSports of
any of the provisions of this Agreement or the negligence or willful misconduct of
KemperSports.
(b) Bv KemperSports. KemperSports shall defend, indemnify and hold harmless the City
and its officials, directors, employees, representatives and agents against any and all liability,
claims, demands, damages and costs of every kind and nature (including, without limitation,
reasonable attorneys' fees and court costs) actually or allegedly resulting from or connected with
the breach by KemperSports of any of the provisions of this Agreement or the negligence or
willful misconduct of KemperSports, except to the extent caused by the breach by the City of
any of the provisions of this Agreement or the negligence or willful misconduct of the City.
The provisions of this Section shall survive the completion of the Services and the expiration or
termination of this Agreement.
8. Insurance.
(a) Bv the Citv. The City agrees to procure and maintain at all times during the Term of this
Agreement, a minimum of the following insurance:
(i) Property Insurance covering loss or damage to the City's buildings, structures,
improvements and other property, as well as the City's, contents, equipment and
supplies. Such property insurance shall include a waiver of all recovery by way
of subrogation against KemperSports in relation to any damage covered by such
policy.
(ii) Commercial General Liability and/or Umbrella/Excess Liability Insurance
providing coverage for bodily injury and property damage arising in connection
with the Event and including coverage for contractual liability providing limits
of not less than:
Bodily Injury and Property Damage Liability - $5,000,000 each occurrence
Personal Injury and Advertising Liability - $5,000,000 per person or per
organization
General Policy Aggregate - $5,000,000
Products Liability/Completed
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Contract No. C26170
Operations Aggregate - $5,000,000
(iii) Commercial Business Automobile Liability Insurance including coverage for all
owned, non-owned, and hired vehicles providing coverage for bodily injury and
property damage liability with combined single limits of not less than
$1,000,000.
(iv) Commercial Liquor Liability (but only during the time of the Event) including
coverage for damages arising out of the selling, serving or furnishing of any
alcoholic beverage with a limit of$1,000,000 per occurrence/$2,000,000
aggregate limit or the minimum limits required by statute if higher.
Special Note: the limits of liability specified in (i), (ii), (iii) and (iv) above can be
satisfied through a combination of primary, umbrella or excess liability policies,
provided that the coverage under such umbrella or excess liability policies is at least as
broad as the primary coverage.
(v) Workers' Compensation Insurance in such amounts that comply with the
statutory limits as required by the State of California, and Employer's Liability
limits, including Umbrella Liability Insurance, if necessary,of not less than
$1,000,000 per accident, $1,000,000 disease-policy limit, and $1,000,000
disease each employee.
(b) Bv KemperSports. KemperSports agrees to procure and maintain at all times during the
Term of this Agreement, a minimum of the following insurance:
(i) Professional Liability insurance including coverage for wrongful acts, errors and
omissions that arise from the scope of services of this Agreement, with an
occurrence or per claim limit and annual aggregate limit of not less than
$2,000,000.
(ii) Workers' Compensation Insurance in such amounts that comply with applicable
statutory requirements, and Employer's Liability limits, including Umbrella
Liability Insurance, if necessary, of not less than $1,000,000 per accident,
$1,000,000 disease-policy limit, and $1,000,000 disease each employee.
(iii) Commercial General Liability and/or Umbrella/Excess Liability Insurance
providing coverage for bodily injury and property damage arising in connection
with KemperSports provision of the Services and including coverage for
contractual liability providing limits of not less than:
Bodily Injury and Property Damage Liability - $5,000,000 each occurrence
Personal Injury and Advertising Liability - $5,000,000 per person or per
organization
General Policy Aggregate - $5,000,000
Products Liability/Completed
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Contract No. C26170
Operations Aggregate - $5,000,000
(iv) Commercial Business Automobile Liability Insurance including coverage for all
owned, non-owned, and hired vehicles used in connection with KemperSports
provision of the Services and providing coverage for bodily injury and property
damage liability with combined single limits of not less than $1,000,000.
5pecial Note: the limits of liability specified in (i), (iii) and (iv) above can be satisfied through a
combination of primary, umbrella or excess liability policies, provided that the coverage under
such umbrella or excess liability policies is at least as broad as the primary coverage.
(c) All such insurance shall be maintained with insurance companies rated at least A- by
Best's Key Rating Guide, and licensed to do business in California. All such insurance shall
name the other party and the other party's affiliates and each of their shareholders, officers,
directors, employees, agents and representatives as additional insureds. Each party shall deliver
to the other party certificates of insurance evidencing the above-required policies. All policies of
insurance shall have attached thereto an endorsement that such policy shall not be canceled or
materially changed without at least thirty (30) days prior written notice to both the City and
KemperSports. Property insurance shall include a waiver of all recovery by way of subrogation
against KemperSports in relation to any damage covered by such policy.
(d) Waiver of Subro ation. Notwithstanding anything else contained in this Agreement, the
City and KemperSports each hereby waive all rights of recovery against the other and their
affiliates,and against each of their officers, employees, agents and representatives, on account of
loss by or damage to the waiving party's property or the property of others under its control, to
the extent that such loss or damage is (i) insured against under any insurance policy which either
may have in force at the time of the loss or damage; or(ii) is required to be insured against in
accordance with this Agreement; or (iii) given the facts and circumstances surrounding the
Event, should reasonably be insured against by the City (in any case, regardless of whether or not
such insurance policy is in effect). The Parties shall, upon obtaining any policies of insurance
required under this Agreement, give notice to its insurance carrier or carriers that the foregoing
mutual waiver of subrogation is contained in this Agreement. This waiver of subrogation shall
survive the expiration or termination of this Agreement.
9. Confidentiality.
(a) Each party acknowledges that the unauthorized use or disclosure of the other party's
confidential or proprietary information (the "Confidential Information") could be extremely
detrimental to the other party.
(b) Each party shall (i) treat the other party's Confidential Information in a confidential
manner; (ii) not use any of the other party's Confidential Information for any purpose not
expressly contemplated by this Agreement; (iii) not copy, use or disclose the Confidential
Information to third parties without the express written consent of the other party; (iv} cause its
employees and representatives to comply with the terms and provisions of this Section while
remaining responsible for the actions and disclosures of such employees and representatives; and
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Contract No. C26170
(v) upon expiration or termination of this Agreement, promptly return all of the other party's
Confidential Information that is in written or tangible form.
(c) Each party acknowledges that the Confidential Information possesses a special, unique
and extraordinary character which makes it difficult to assess the monetary damages the other
party would sustain in the event of unauthorized use. Irreparable injury would be caused by such
unauthorized use, and each party agrees that in the event of breach of this Section, there would
be no adequate remedy at law and preliminary or permanent injunctive relief would be
appropriate.
(d) The terms and content of this Agreement shall remain confidential and shall not be
revealed to any third party by either party, except to the extent (i) permitted by this Agreement,
(ii) required by law, or (iii) made to a court or other mediator in connection with a dispute
between the parties.
(e) Notwithstanding anything else contained in this Agreement to the contrary,
KemperSports acknowledges that the City is a public agency and subject to the provisions of
certain public information laws and regulations, and nothing in this Agreement shall be
construed to prevent or restrict the City from full compliance with any such applicable laws and
regulations. If the City receives a public records request for this Agreement and/or any
KemperSports' Confidential Information, then the City shall notify KemperSports in writing of
such request.
(� The provisions of this Section shall survive the expiration or termination of this
Agreement.
10. Indenendent Contractor/Personnel. The relationship of KemperSports and its personnel to
the City shall be that of independent contractor. All personnel shall at all times be and remain
the employees or subcontractors of KemperSports and shall be neither the employees nor agents
of the City.
During the Tertn and for a period of two (2) years after the end of the Term, it is agreed that the
City and its agents and contractors shall not seek to contact, entice, or discuss employment with
any KemperSports personnel, including employees and subcontractors,without first obtaining
the written consent of KemperSports.
1 l. Termination.
(a) This Agreement may be terminated upon the occurrence of any one or more of the
following events which is not cured within the specified cure period:
(i) Failure to Pav Sums Due. Either party's failure to pay any sums due and payable
under this Agreement when and as the same shall become due and payable and such failure shall
continue for a period of ten (10) business days after written notice (specifying the item not paid)
thereof from the other party to the defaulting party.
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Contract No. C26170
(ii) Failure to Comulv. Either party's failure to comply with any of the covenants,
agreements, terms, or conditions contained in this Agreement and such failure shall continue for
a period of thirty (30) days after written notice thereof from the other party to the defaulting
party specifying in detail the natwe of such failure. Notwithstanding the foregoing, in the event
any failure cannot with due diligence be cured within such 30-day period, if the defaulting party
proceeds promptly and diligently to cure the same and thereafter diligently prosecutes the curing
of such failure, the time within which the failure may be cured shall be extended for such period
as may be necessary for the defaulting party to cure the failure.
(b) In the event of any termination of this Agreement, subject to those provisions of this
Agreement which by their express terms survive such termination, KemperSports shall be
entitled to compensation for fees and expenses incurred as provided for herein on Services
performed through the effective date of termination.
12. Work Product. All materials, art work, advertisements, logos, designs, drawings and other
records of the event developed, submitted or purchased by KemperSports solely for the City, in
the form and to the extent specifically utilized in the Event, shall be the property of the City. .
Notwithstanding the foregoing, KemperSports shall retain ownership of its software, processes
and all proprietary data, documentation and other materials, including without limitation,the
"form of'materials provided in connection with the Event. Additionally, the City agrees that
KemperSports may use the City's name and the Event's trademarks and logos in its marketing
and promotional materials as an event managed by KemperSports.
13. Assi�nment. Neither party may assign this Agreement to any third party without the prior
written consent of the other party hereto.
14. Notices. Any notices or other communications required or permitted hereunder shall be
sufficiently given if in writing and(i) delivered personally, (ii) sent by certified mail, return
receipt requested, postage prepaid ("Mail"), or sent by nationally-recognized overnight mail or
courier service ("Overnight Courier"), addressed as shown below, or to such other address as the
party concerned may substitute by written notice to the other. Any notice will be deemed
received (A) upon the date personal delivery is made, (B) three (3) business days after the date it
is deposited in the Mail, (C) one (1) business day after it is deposited with an Overnight Courier,
or(D) the date upon which attempted delivery of such notice,whether by Mail, Overnight
Courier or personal delivery, is refused or rejected.
If to the City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
Attention: City Manager
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Contract No. C26170
If to KemperSports: Kemper Sports Marketing, Inc.
500 Skokie Boulevard, Suite 444
Northbrook, Illinois 60062
Attention: Steven K. Skinner, President
with a copy to: Kemper Sports Management, Inc.
500 Skokie Boulevard, Suite 444
Northbrook, Illinois 60062
Attention: Corporate Counsel
The addresses and addressees may be changed by giving notice of such change in the manner
provided herein for giving notice. Unless and until such written notice is received, the last
address and addressee given shall be deemed to continue in effect for all purposes.
15. Governin�Document. This Agreement shall govern in the event of any inconsistency
between this Agreement and any of the Exhibits attached hereto or any other document or
instrument executed or delivered pursuant hereto or in connection herewith
16. Outside Businesses. Nothing contained in this Agreement shall be construed to restrict or
prevent, in any manner, any party or any party's affiliates,representatives or principals from
engaging in any other businesses, services or investments, nor shall the City or KemperSports
have any right to share or participate in any such other businesses, services or investments of the
other party.
17. Unavoidable Delays. The provisions of this Section shall be applicable if there shall occur
during the Term any (i) strikes, lockouts, or labor disputes, (ii) inability to obtain labor or
materials, or reasonable substitutes therefor, (iii) acts of God, governmental restrictions,
regulations or controls, enemy or hostile governmental action, civil commotion, fire, or other
casualty, or(iv) other conditions beyond the reasonable control of the party obligated to perform.
If either party shall, as the result of any of the above-described events, fail punctually to perform
any obligation on its part to be performed under this Agreement, then such failure shall be
excused and not be a breach of this Agreement by the party claiming an unavoidable delay (an
"Unavoidable Delay"), but only to the extent the delay is occasioned by such event. If any right
or option of either party to take any action under or with respect to the Term is conditioned upon
the same being exercised within any prescribed period of time or at or before a named date, then
such prescribed period of time or such named date shall be deemed to be extended or delayed, as
the case may be, upon written notice, as provided above, for a time equal to the period of the
Unavoidable Delay. Notwithstanding anything contained herein to the contrary, the provisions
of this Section shall not be applicable to either party's obligation to pay any sums, monies, costs,
charges, or expenses required to be paid pursuant to the terms of this Agreement.
18. No Third-Part�Beneficiaries. Nothing herein contained shall be deemed to establish any
rights of third parties against the parties hereto; it being the intent that the rights and obligations
set forth herein are those of the parties hereto alone, with no third party beneficiary rights
intended.
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Contract No. C26170
19. Counterparts; Facsimile Si na� tures. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but all of which together shall be deemed one and the same
Agreement. Facsimile signature shall be as effective as an original signature.
20. Miscellaneous. This Agreement (i) sets forth the entire understanding of the parties with
respect to the subject matter addressed herein and supersedes any and all prior understandings
and agreements, whether express or implied; (ii) shall be governed by and construed in
accordance with the laws of the state of California, without regard to its conflict of laws
provisions; (iii) may only be amended by written agreement of the parties, dated after the date
hereof; and (iv) shall be binding upon the successors and assigns of the parties. If the parties
executed this Agreement subsequent to the commencement date of this Agreement, the parties
hereby acknowledge and agree that all terms, conditions and provisions of this Agreement shall
nevertheless apply to all acts, occurrences and events occurring from and after the
commencement date notwithstanding the fact that the parties executed this Agreement
subsequent to such date. No waiver of any provision of this Agreement shall be effective unless
it is expressly set forth in writing and then only for that occunence. No action or failure to act
by either party shall constitute a waiver of a right or duty afforded it or constitute approval of or
acquiescence in a breach hereunder except as may be specifically agreed in writing. The
remedies provided in this Agreement are cumulative, and shall not affect any other remedies at
law or in equity. The exercise of any right or remedy herein shall be without prejudice to the
right to exercise any other right or remedy provided herein, by law or in equity. If any term or
provision of this Agreement is held to be invalid, illegal or unenforceable by a court of
competent jurisdiction, such invalidity, illegality or unenforceability shall not effect, impair or
invalidate any other term or provision herein, and such remaining terms and provisions shall
remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by duly
authorized representatives as of the date first set forth above.
CITY OF PALM DESERT KEMPERSPORTS MARKETING, INC.
By: By:
Name: Name: Steven K. Skinner
Title: Title: President
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Exhibit A
EVENT MANAGEMENT
KemperSports will work with the City of Palm Desert and the City's many service partners to
manage the Art of Food and Wine event and will include the following:
Administration
• Business planning
• Accounting and financial reporting
• Purchasing
• Budget management
• Vendor management
• Contract negotiation
KemperSports will create the Event Expense Budget for 2007, 2Q08, and 2009. KemperSports
accounting staff will oversee all financial reporting, accounts payables and accounts receivables
through the KemperSports home office.
KemperSports will submit financial reports to the City on a monthly basis utilizing a similar
accounting format to the one used at Desert Willow. KemperSports will use these financial
reports in our monthly meetings with City staff. After the 2007 event is complete, KemperSports
will provide the City a post-event financial report that includes all revenues, expenses and
pertinent financial information.
KemperSports will manage the bidding, negotiating, hiring and accounting for all vendors
associated with the event. KemperSports will also manage all contract negotiations with vendors,
sponsors, entertainment and other service providers, as well as generate and maintain all event
contracts per the City's established policies and procedures. •
Operations
• Planning
• Brainstorming
• Development
• Logistics management
• Execution/implementation
KemperSports will:
■ • Create the Annual Plan and Event Expense Budget to be approved by the City.
Oversee site selection for various event activities.
• Manage the planning, organizing and implementation all event activities.
• Oversee execution of all vendor, sponsor and partner contracts.
• Manage staffing and security for all event activities and operations.
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• Work with the Marriott and other facilities to improve and coordinate attendee
transportation and logistics.
• Provide a 2007 post-event operations recap.
Ticketing
• Work with the City to develop and propose an event pricing structure (a la carte and
weekend package opportunities) for individuals as well as for businesses and groups.
• Collaborate with Marriott and other travel partners to create event travel packages and
incentives.
• Design and print tickets.
• Coordinate and manage distribution and management system for ticket sales.
Internal Communications
• Manage regular meetings with the City of Palm Desert staff.
• Report and communicate on an ongoing basis with the City of Palm Desert (through
phone, email, regular meetings, etc.).
• Submit regular written progress reports.
• Conduct monthly in-person meetings or conference calls.
• Conduct bi-weekly conference calls beginning three-months prior to event.
Marketing
• Coordinate media planning, advertising/collateral development and advertising
purchasing.
• Administer the event web site year round.
•Negotiate with artist for annual event poster and graphic.
• Govern the design, production and sale of event merchandise, in retail and promotion.
• Work with the City's retail and restaurant organizations, as well as with regional and
state bodies to generate exposure for the event.
• Reach out to hospitality programs at California universities and colleges.
• Work with event sponsors and partners to promote the event among their constituents.
• Drive ticket sales through various efforts, including but not limited to publicizing ticket
prices and availability, promoting tickets to local colleges and alumni organizations and
more.
• Promote ticket sales through event web site, sponsors and partners, local businesses,
friends of the City, etc.
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Exhibit B
PUBLIC RELATIONS
KemperSports will create a three-part public relations plan for the Art of Food and Wine event
that will include the following:
Pre-Event Publicity
• Set measurable objectives, including number of placements, media tier analysis,
audience reach/media impression calculation.
• Develop a broad-reaching media database, which includes contacts from appropriate
broadcast, print and online media outlets.
• Compile and distribute visual footage and images in quality media kit and undertake
media outreach to:
o Encourage pre-event media coverage.
o Secure travel and event calendar listings.
o Influence event rankings and reviews.
o Simulate interest in attendance.
Event Publicity
• Host important media throughout the event.
• Manage daily event communications and information dissemination.
• Spearhead internal production, photography and copywriting.
• Facilitate on-site media opportunities, visuals and interviews.
Post-Event Pub[icity
• Influence event rankings and reviews.
• Finalize and secure outstanding broadcast and print coverage.
• Prepare and distribute post-event media materials, footage and photography.
• Measure results of the PR program based on the defined metrics and benchmarking
success for the year to come.
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Exhibit C
SPONSORSHIP CONSULTATION AND SALES
KemperSports will develop and sell sponsorships designed to allow for local and regional
corporate partners to participate. This program will include the following elements:
• Review goals and objectives of City and set mutually agreed upon sales targets each
year
■ Execute proprietary "Revenue Ready" analytical audit and valuation.
• Research industry and competitive events and their sponsor programs.
• Generate promotional concepts that enhance the overall event while supporting sponsor
objectives.
• Oversee development of sponsorship proposals and materials.
• Identify qualified list of corporate sponsor prospects.
• Solicit prospective sponsors and negotiate partner contracts.
• Provide on-site resources to implement and fulfill all contract obligations.
• Deliver partner post-event recap books.
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