Loading...
HomeMy WebLinkAboutC31590 Marketing and Online Tee Time Reservations for Desert Willows Golf ResortCITY OF PALM DESERT Contract No. C31590 STAFF REPORT REQUEST: APPROVE AN AGREEMENT WITH GOLF CHANNEL SOLUTIONS TO PROVIDE MARKETING AND ONLINE TEE TIME RESERVATIONS FOR DESERT WILLOW GOLF RESORT SUBMITTED BY: Martin Alvarez, Redevelopment Manager DATE: February 9, 2012 CONTENTS: Golf Channel Solutions Agreement Golf Now Webpage Example Recommendation By Minute Motion: 1. Approve an agreement with Golf Channel Solutions to provide golf course marketing and online tee time reservations for the Desert Willow Golf Resort; and (Contract No. C31590) 2. Authorize Desert Willow Golf Resort to provide two golf rounds per day to Golf Channel Solutions in lieu of compensation for services provided. Executive Summary Desert Willow Golf Resort (DWGR) is nationally recognized for its' two championship golf courses. DWGR averages over 85,000 golf rounds per year, and generates approximately $6 million in golf revenues. Marketing of the golf courses is a vital part of its success and a variety of marketing strategies are utilized. Marketing strategies include website promotion, print media in target markets, social media, and email communications with an annual marketing budget of $327,000. Target markets for golf course promotion include the Pacific Northwest, Canada, the Midwest, and parts of the Inland Empire. Background Golf Channel Solutions (GCS) is a company that specializes in national and international golf course marketing and online tee time reservation services. GCS has over 3,400 golf courses under contract across the world. GCS has developed a Staff Report Golf Channel Solutions Agreement at Desert Willow February 9, 2012 Page 2 of 3 business model that consists of providing marketing, promotion, and online tee time reservations with compensation in the form of "trade" (i.e. sellable golf course tee times). Many of the top golf courses in the Coachella Valley currently have agreements with GCS to assist them with marketing and 24/7 online tee time reservations. Other local municipal golf courses which have contracts with GCS include La Quinta's Silver Rock Resort and Indian Wells Golf Resort (see attached Silver Rock Resort GolfNow webpage). Staff has worked with Desert Willow's Management (Kemper Sports) and GCS to develop an agreement tailored to Desert Willow Golf Resort. The attached agreement allows Desert Willow Golf Resort to contract with GCS to provide marketing and promotion of DWGR through a variety of marketing platforms. The marketing platforms include promotion of the golf resort and available tee times on the internationally recognized GolfNow.com website. GolfNow's website would provide a convenient link to Desert Willow's website and a portal to search and make real time, tee time reservations to play both of Desert Willow's golf courses. In addition, GCS provides a variety of other marketing opportunities that include the following: • Promotion of Desert Willow Golf Courses on the Golf Channel (National Golf Only Channel) • Promotion of Desert Willow via Print, Radio, and Grassroots Efforts • Email Marketing GCS Agreement Terms: The agreement consists of GCS providing marketing, promotion, and online reservations of Desert Willow's tee times in exchange for GCS's use of two tee times per day. One tee time per course/day would be made available to GCS to sell online (not to exceed Desert Willow posted rates) in lieu of compensation for services. The average daily golf rate is $75.00, but the in lieu trade would range between $35,000- $45,000/year, depending on actually discounted rate sold by GCS. The agreement is on a month -to -month basis and has been reviewed by our legal counsel. The GCS agreement will allow Desert Willow to reach a larger section of the market, including other parts of the United States and international markets. Kemper Sports currently manages over 40 golf courses that successfully utilize GCS services with similar trade compensation. The GCS contract is estimated to increase golf revenues by approximately $250,000 to $500,000 annually. Staff recommends approval. Fiscal Analysis One tee time per course/day would be sold online by GCS (per Desert Willow posted rates) in lieu of compensation for services. The average daily golf rate fluctuates throughout the year and the in lieu trade equals approximately $45,000 per year. G\rda\Martin A1varez\2012\SR\2-9-12 GoI Nowagrm-DW.doc Staff Report Golf Channel Solutions Agreement at Desert Willow February 9, 2012 Page 3 of 3 There is no direct fiscal impact to the City. Submitted By: M in Alvarez, Redevelopment Manager Department Head: McCarthy, ACM n M. Wohlmuth, City Manager lopment aul S. Gibson, Director of Finance CITY COUNCIL ACTION APPROVED ✓ DENIED RECEIVED OTHER MEETING DATE o? - 9- a oia AYES: 6euckl inerf URI , Krcpnen NOES: N©n,e. ABSENT: None -- ABSTAIN: N onf- VERIFIED BV: RDiC-I_r 1 Original on File with Cite Clerk's Office \\srv-fil2k3\groups\rda\Martin A1varez\2012\SR\2-9-12 GolfNowagrm-DW.doc Contract No. C31590 %V1 S 0 L 0 iIo s Golf Channel Solutions Marketing and Technology Services Agreement The following Agreement between Golf Channel Solutions (GCS) and Desert Willow Golf Resort (DW) shall be effective as of (the "Effective Date") and shall govern GCS's provision of services for the following of DW's golf courses: Firecliff Golf Course and Mountain View Golf Course. This Agreement shall be governed by the Standard Terms and Conditions attached hereto as Appendix A and Golf Channel Solutions Marketing Services Agreement Addendum (incorporated herein by this reference). This term of this Agreement shall be one month and that it will automatically renew on the first day of each month unless either party has given notice on or before the first day of the preceding month, in which case the contract will not be renewed. DW's total payment to GCS shall be in the form of one Trade Time* per facility per day, in exchange for which GCS shall provide the Marketing Platform as set forth below. Marketing Platform: • Promotion of DW and DW's tee time inventory on Golfnow.com and GCS's network of partner websites • Marketing of DW across GCS assets o Could include TV, web, print, radio, grassroots • Demand -based pricing support • Opportunity email/call program • Tee sheet management services • Dedicated market management team • IMUS (Internet Marketing and Utilization Solution) Technology: o Web -based, log in access o Online tools for managing tee time inventory o Email marketing o Customer segmentation o Customer profiles o Resident/non-resident pricing distinction o Auto adjust technology • Real-time reporting • Standard course website booking engine (optional) "Payment: 1 Trade Time/day/course except as otherwise noted in Addendum COURSE Signature: Mailing Address: Phone Number: ( ) GCS Signature: Printed Name: Email: Effective Date: Trade Time means one 18-hole foursome (or fivesome where allowed) made available for sale by GCS for its own benefit, the tee time of which shall be between 30 minutes after opening until 4.5 hours prior to dusk. GCS shall have the ability to sell Trade Times as singles. Contract No. C31590 Appendix A Standard Terms and Conditions 1. Tee Time Marketing Services. GCS shall provide GCS's Tee Time Marketing Services for the purpose of marketing, promoting and selling DW tee times. GCS shall provide access to DW tee times to any of its branded websites, partner or affiliated websites or any other distribution channel. GCS will provide the GCS Services in a professional and workmanlike manner and free from any unreasonable defects, and GCS will use all reasonable means to fix any defect in the GCS Services that arise. GCS will provide DW with training on how to use the GCS Services and provide help and support as needed by DW. GCS shall apply the latest version of the GCS Services to the marketing and administration of DW tee times. GCS shall notify DW in advance in writing of any GCS Services updates and will provide appropriate training and/or materials to DW concerning all updates. Aside from these warranties, THE GCS SERVICES ARE PROVIDED WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. DW and its authorized users will use the GCS Services only in accordance with this Agreement. 2. Pricing. DW shall have the right to approve the price and amount of all non -Trade Time inventory offered in the GCS network. GCS shall receive tee times and rates equal to or better than those offered by DW to any third -party distribution service. 3. Term. This term of this Agreement shall be one calendar month. This agreement will automatically renew on the first day of each month unless either party has given notice of termination on or before the first day of the preceding month, in which case the contract will be terminated. 4. Data Security. Industry standards have been set by the Payment Card Industry Data Security Standards ("PCI Standards") for protection of customer information. The Parties represent and warrant that they will comply with PCI Standards for the entire Term of this Agreement and further agree to adhere to all other applicable standards, laws, rules, and regulations for protection of Customer Data to which they have access during the entire Term of this Agreement. GCS agrees that it will use systems, tools and security and take commercially reasonable steps to ensure DW Data is not accessed, redistributed, duplicated, or modified. 5. Limited Warranties. Both Parties represent and warrant that: (a) they have the authority to enter into this Agreement and that their signatories are duly authorized and empowered to sign this Agreement on their behalf; (b) they will comply with all applicable laws, ordinances, statutes, regulations and rules, and that they have the power to settle fully and completely all claims, causes of action, demands, charges and liabilities arising out of or relating to the Agreement. 6. Limitation of Liability. EXCEPT FOR THIRD PARTY LIABILITITES, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES BASED ON LOSS OF PROFITS, LOSS OF USE, BUSINESS INTERRUPTION OR LOSS OF DATA), EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING LIMITATIONS SHALL APPLY REGARDLESS OF THE CAUSE OR THE FORM OF ACTION (WHETHER BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE). 7. Ownership of Property and Data. All personally -identifiable customer information supplied to GCS by DW (e.g. through the GCS booking engine being hosted on DW's website) remains the sole property of DW (unless independently obtained by GCS through some other means), cannot be copied, sold or reused by GCS (absent DW's explicit permission), and will be treated as confidential business information with at least the same degree of care as GCS's own confidential business information. All non -personally identifiable customer information supplied to GCS by DW (e.g., anonymous survey results), as well as all customer data obtained independently by GCS (e.g., through an end -user booking a tee time at golfnow.com or other affiliated websites) shall be GCS's sole property, but may be shared with DW should the Parties agree and obtain end -user consent for such an arrangement. The following shall remain the sole and exclusive property of GCS: (a) the GCS Technology and Tee Time Marketing Services (including any of GCS's enhancements or upgrades thereto), and all other software and materials developed, conceived, originated, prepared, generated or furnished by GCS under this Agreement; and (b) all copyrights, trademarks, patents, trade secrets and any other intellectual property and proprietary rights in and to the foregoing. 8. Dispute Resolution. This Agreement shall be governed, interpreted and construed under the laws of the United States and the State of Florida without regard to any conflict of law principles. The Parties shall act in good faith and use commercially reasonable efforts to promptly resolve any claim, dispute, controversy or disagreement (each a "Dispute") between the Parties under or related to this Agreement. Any Dispute arising out of this Agreement which cannot be resolved by the Parties shall be governed exclusively by binding arbitration initiated and conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association, conducted in the Orlando, Florida metropolitan area. The arbitrator shall have the power to award reasonable attorney's fees and costs to the prevailing party in any arbitration, and either party shall have the right to take appropriate action to enforce any arbitration award. 9. Binding Nature: Assignment. This Agreement shall be binding upon GCS and DW and their respective successors and assigns; provided, however, that neither party shall assign this Agreement or any of its rights or obligations hereunder, without the prior written consent of the other party, which consent shall not be unreasonably withheld, conditioned, or delayed. A sale of substantially all of the stock or assets of a party, or the reorganization or merger of a party, shall not constitute an assignment of this Agreement. Any assignment or transfer in violation of this Section shall be void and of no force or effect. Any subcontractors retained by GCS to perform certain obligations hereunder shall be bound by and their actions are governed by this Agreement as if GCS itself was performing such obligations. Contract No. C31590 Golf Channel Solutions Marketing Services Agreement Addendum The following Addendum terms and conditions are attached and become part of the Golf Channel Solutions Marketing and Technology Services Agreement between Desert Willow Golf Resort(DW) and Golf Channel Solutions (GCS) dated 1) No Trade Times will be allocated to GolfNow (GCS) during either golf course over -seed shutdowns, for both Firecliff and Mountain View, as planned annually. DW will notify GCS of these over -seed dates in writing. 2) No Trade Time will be allocated for Christmas Day as the Courses are closed for business 3) No Trade Times will be allocated in the Event of Golf Course Renovations or golf course closures with no public play. 4) No Trade Times will be allocated for days of complete rainout. 5) DW will be allowed to have up to 10 days a year available for no trade time in the event of Course Buy - Outs by large clients. Make ups will not be allocated. 6) DW retains the right to shift one course's Trade Time to the other course on a limited basis and only as required by business needs. 7) GCS agrees to allow DW to e-mail blast up to two additional times per month, In -Season, from November 15th to Mayl5th each fiscal year. 8) GSC agrees to assist DW in promoting two additional Special Golf Tournament or Events per year in addition to the base agreement. 9) All agreements by and between GCS and DW are also subject to the approval of the City of Palm Desert as owners of the facility. 10) DW grants to GCS a non-exclusive, non -transferable (except as permitted herein), limited, royalty free, revocable right and license to use their name for marketing of tee times only. This license shall terminate upon the termination of this Agreement. All other uses of the trademarks, trade names, service marks, logotypes, images, course depictions and designs shall only be used by GCS with DW's prior written consent, which consent may be withheld in DW's sole discretion. GCS is not granted and does not claim any ownership or other interest in the DW Marks. Except as expressly provided herein, DW reserves all rights in and to the DW Marks. GCS shall not utilize any of the DW Marks in any search engine optimization or paid -search or any other marketing efforts (including purchasing keywords for DW on any major search engine) without prior DW approval. 11) DW agrees to indemnify, defend (at DW's sole expense) and hold harmless GCS, its subsidiaries, affiliates, successors, and assigns and their respective shareholders, directors, officers, employees, representatives, and agents from and against all damages, losses, expenses, claims, demands, causes of action, debts or liabilities, including reasonable attorneys' fees, arising out of or in connection with: (a) any actual breach of the representations or warranties made by DW under this Agreement; (b) the negligent or wrongful performance of, or failure to perform, by DW or DW's agents and/or employees, any duties or obligations under this Agreement; and (c) any regulatory or legal disputes or liability of any kind regarding the taxation of revenue earned by DW through GCS's sale of DW's tee times. 12) GCS agrees to indemnify, defend (at GCS's sole expense) and hold harmless DW, its subsidiaries, affiliates, successors, and assigns and their respective shareholders, directors, officers, employees, representatives, and agents from and against all damages, losses, expenses, claims, demands, causes of action, debts or liabilities, including reasonable attorneys' fees, arising out of or in connection with: (a) any alleged breach of the representations or warranties made by GCS under this Agreement; (b) the negligent or wrongful performance of, or failure to perform, by GCS or GCS's agents and/or employees, any duties or obligations under this Agreement; (c) any regulatory or legal disputes or liability of any kind regarding the taxation of revenue earned by GCS through GCS's sale of DW's tee times; and (d) in any way arising from GCS's provision services under this Agreement (except as caused by the negligent or wrongful misconduct of DW). Contract No. C31590 13) DW and GCS agree to give each other prompt notice of any claim or liability to which the other's indemnity obligation may apply. The indemnified Party shall cooperate fully, at the expense of the Party giving the indemnity, in the defense or settlement of any claim or liability. The indemnified Party also may participate with separate counsel engaged at its own reasonable expense in the defense of any such claim or liability. 14) DW will provide GCS with "Trade Rounds" and "Course Rounds" for sale through GCS and their Distributors. For the Course Rounds, GCS agrees to list the price set by DW with no mark up or mark down, consumer fees or additional costs, except for the taxes and online fees charged by GCS; further it agrees that it will not provide any discount, promotional offers or other incentives that would allow an End User to secure a Course Round at a rate lower than the rate provided by DW. Any exceptions must require advanced written consent from DW. Trade Rounds shall be priced according to the Pricing Guidelines below. Where DW provides barter times for other product or service providers as compensation, DW assures GCS that GCS pricing will be equal to or more favorable than the pricing provided to such third parties. Such matching shall not apply to DW's commissioned partners. 15) A "Trade Round" is one 18-hole foursome (made available for sale by GCS for its own benefit, the payment of which shall be made directly to GCS at the time of reservation. Trade Round tee times shall be between opening until 4.5 hours prior to dusk. The maximum "roll window" for Trade Rounds shall be 60 minutes from the allotted time. GCS shall have the ability to sell Trade Rounds as singles and shall have the ability to sell Trade Rounds on the day of play. 16) DW shall approve and provide GCS with a minimum of seven (7) Trade Rounds per week per golf course. GCS shall sell no more than two (2) such Trade Rounds on any given day. GCS shall have the authority to price Trade Rounds as it sees fit, provided that GCS does not discount Trade Rounds off the corresponding Retail Rate by more than the allowable percentages set forth in the pricing guideline table below. For purposes of this Agreement, "Retail Rate" shall mean the established, publicly available rate offered by DW at the corresponding time of day. Pricing Mon- Sat - Guidelines Thur Fri Sun Open-llam llam-2pm After 2pm 30% 35% 20% 35% 30% 35% 40% 40% 40% 17) In the event that DW offers tee times to the public through any website not owned by DW at a rate less than GCS's minimum pricing set forth in the above Pricing Guidelines, GCS shall have the ability to price its Trade Rounds at ten percent (10%) less than such publicly -available rates. This does not pertain to rates commonly offered by DW that are valid only to a limited golfer classification, such as but not limited to Seniors, Juniors, Residents, Loyalty Members, or Military PersonnelNeterans. 18) A "Course Round" is any non -Trade Round posted and sold through GCS or its Distributors, the payment for which shall be made directly to DW at the time of play. In addition to the Trade Rounds, DW shall also provide GCS with Course Rounds on a regular basis to provide a compelling offering to GCS users. GCS shall assume all liability for any and all sales, use, amusement and/or any other applicable taxes for all Trade Rounds sold. DW shall assume all such tax liability for all Course Rounds sold. Signed and agreed as part of the Master Agreement dated For GCS For Desert Willow Golf Resort SilverRock 1 Golf Course, SilverRock Resort - La Quinta, California Golf Course Directo... Page 1 of 2 Search r Like 19k c7w( Palm Springs a, ng Z,p Pnstal Code - - Ga May. Home Palm Springs Tee Times Course Information Tournaments Sign In I Sign up for our Email Club Sign Up for our Email Club Palm Springs Weather Customer Support GOIfNow Mobile Golf Digest Top 100 Instruction i{oo7e , Palm Sprorg5 SilverRock Resort fiS . t SilverRock Resort is home to the Arnold Palmer Classic Course and is one of the Home Courses of the Bob Hope Classic. Measuring at 7578 yards from the back tees, the Arnold Palmer Classic Course is the longest layout in the Coachella Valley and is one of the longest courses on the PGA Tour. Opened in early 2005, this layout is situated at the base of Santa Rosa and Coral Mountains - and is closer to these mountains than any other public course in the Coachella Valley. As a result, the views are postcard quality, with gorgeous backdrops and surrounding vistas. Combined with outstanding conditions from tee to green and wonderful service, SilverRock Resort provides one of the most memorable golfing experiences in La Quinta - or anywhere! You will absolutely love this golf course! Facility Information Course Information Amenities Weather View Tee Times for SilverRock Resort Course Information for SilverRock Resort Facility Information: General: 18 hole regulation length course i golf course(s) Managed by Landmark Golf Company SilverRock Resort Information: General: 18 hole regulation length course Municipal golf course Designed by Erik Larsen Resort facility Green Fees: Weekend: $160, 00* View Tee Times includes golf where available Staff: Contact: Randy 3. Duncan, General Manager Golf Professional: James Saenz Amenities: Driving Range FJFootloy Weather Report La Quinta, CA MAKE EVERY DAY PLAYABLE Current Conditions 560 Sunny High: 75° F Low: 43° F SilverRock Resort 79179 Ahmanson Ln La Quinta, CA 92253 URL: Course Website. 3 r ti LaQuinta Map data02012 Google - View Larger Map Get Directions http://www.golfnow.comlcourse-directorylcalifomia-golf-courses/la-quinta-golf-courses/si... 1 /31 /2012