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HomeMy WebLinkAbout5/16/2001 - STAFF REPORTS (28) DATE: May 16, 2001 TO: City Council FROM: City Manager SUBJECT: Third Amendment to the Convention Center Management Agreement - Relative to City's Sanctioned and Funded Events RECOMMENDATION: That the Management Agreement for the Palm Springs Convention Center be amended to allow the City prior approval for booking events similar to the City's officially sanctioned and funded events. SUMMARY: From time to time, parties may wish to book the Convention Center for an event which is similar to official, sanctioned City-sponsored events. At times, the City may wish to review such events to determine whether or not they compete,or conflict with, such City-sanctioned and City-sponsored events. The Management Agreement between the City and LMI currently does not allow for such review of Convention Center bookings. This proposed Third Amendment to the Management Agreement would provide for this review. BACKGROUND: In 1992 the City entered into an agreementwith LMI to manage and operate the Convention Center. This agreement outlines broad guidelines for the booking of events at the Convention Center,with the goal to maximize the use of the facility; however,there may be occasions when events wishing to bookthe Convention Center are similarto events officially sanctioned by the City. The City may wish to review these events prior to booking the Convention Center to ensure that they are not detrimental to the event sanctioned by the City. With this in mind, staff recommends the following Amendment to the Management Agreement between the City of Palm Springs and LMI, now owned by SMG. Should the City Council agree with this proposed Third Amendment, attached is a Minute Order which would approve the Amendment, as well as a copy of the subject Third Amendment. David H. Ready, City Ma r Attachments: 1. Proposed Minute Order 2. Proposed Third Amendment THIRD AMENDMENT TO MANAGEMENT AGREEMENT This Third Amendment to Management Agreement ("Third Amendment') is made effective as of May_, 2001, by and between LMI/HHI, LTD., Texas limited partnership, dba Leisure Management International ("Manager") and the City of Palm Springs, a California municipal corporation ("City"). RECITALS: 1. On or about April 1, 1992, Manager's predecessor in interest and the City entered into that certain Management Agreement forthe Palm Springs Convention Center, Palm Springs, California, between the City of Palm Springs and Leisure Management International ("Management Agreement"). 2. On or about August 1, 1994, the parties entered into that certain First Amendment to Management Agreement("First Amendment"),whereby the parties agreed to extend the initial term of the Management Agreement to July 31, 1999, as set forth in the First Amendment. 3. On or about April 15, 1998, the parties entered into that certain Second Amendment to Management Agreement ("Second Amendment"), whereby the parties agreed to further extend the term of the Management Agreement to June 30, 2003, as set forth in the Second Amendment. 4. Concurrently therewith, the parties executed an Agreement for Tourism Services ("Tourism Agreement"),wherein Manager provides City with services privatizing, managing, and operating the Tourism Department of the City. 5. Occasionally, parties may request Convention Center bookings for events similarto City-sanctioned and City-sponsored events which might or might not conflict with or compete with such events. 6. The City desires to have an opportunity to review such booking requests in order to protect its investment in such events. NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Modification of Section 3.3: Section 3.3 of the Management Agreement is amended by adding the following subsection "i": "i. The City's "Authorized Representative"shall provide to Manager a list of all events sanctioned and funded by the City by the first day of each fiscal year for the upcoming 12-month period. Furthermore, the City shall notify Manager of any additions to the list which occur during the fiscal year. Manager agrees to notify City's "Authorized Representative' of any events which are similar to events sanctioned and funded by the City for review and approval by City prior to booking such event into the facility. Such approval shall not be unreasonably withheld". cmirA ?w Third Amendment to Management Agreement LMI/HHI, Ltd. Page 2 2. Full Force and Effect. Except as set forth herein, the Management Agreement, as amended by the Second Amendment and this Third Amendment, shall remain otherwise unmodified and in full force and effect. IN WITNESS WHEREOF, the parties have executed and entered into this Third Amendment as of the date first written above. CITY OF PALM SPRINGS, a municipal corporation By: City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney "MANAGER" LMI/HHI, LTD.,Texas limited partnership,dba Leisure Management International By: Name: Title: Address: [END OF SIGNATURES] a1143 MINUTE ORDER NO. APPROVING THE THIRD AMENDMENT TO THE CONVENTION CENTER MANAGE- MENT AGREEMENT BY AND BETWEEN LMI/HHI, LTD. AND THE CITY OF PALM SPRINGS, SAID AMENDMENT DEALING WITH A BOOKING POLICY RELATIVE TO EVENTS SIMILAR TO CITY-SANCTIONED AND FUNDED EVENTS --------------- I HEREBY CERTIFY that this Minute Order, approving the Third Amendment to the Convention Center Management Agreement by and between LMI/HHI, Ltd. and the City of Palm Springs, said Amendment dealing with a booking policy relative to events similar to City-sanctioned and funded events, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 16'h day of May, 2001. PATRICIA A. SANDERS City Clerk c2-'r