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HomeMy WebLinkAbout05402 - DESERT CLASSIC CHARITIES SPONSORSHIP AGR FOR BOB HOPE CHRYSLER CLASSIC GOLF TOURNAMENT 1 )60 346 6329 BOBI-IOPECI-IRYSLER BOB HOPE CFIRYSLEF CLASSIC 06.32:18am 04-08-2009 2/2 Caty of Palm IS David H. Ready, City Manager 3200 F Tnhquicz Canyon Way • Palm Springs,California 92262 -qL�pORN TEL:(760) 323-8201 • PAX: NO)323-8207 • Web:www.pilmsprings-ca.gov July 3, 2008 Bob Hope Chrysler Classic Attn.: Mr. David J- Erwin President and Tournament Chairman P.O. Box 865 39000 Bob Hope Drive Rancho Mirage, CA 92270 Dear Mr.Erwin: It is with regret that I report that the Palm Springs City Council could not set aside funds in their 2008/09 budget to fund the Bob Hope Chrysler Classic Golf Tournament for the upcoming tournament As per 1. (d) Term and Termination of the Sponsorship Agreement, ".-.this Agreement is subject to and contingent upon funds being appropriated therefore by the Palm Springs City Council for each fiscal year covered by the Agreement, and if such appropriations are not made, this Agreement shall automatically terminate without penalty to the City." Therefore, let this letter serve as formal notice that the City of Palm Springs is terminating the existing agreement with Bob Rope Chrysler Classic Golf Tournament and the City of Palm Springs as of this date. Sincerely, ay_David bI- Ready, City Manager DHlt:jt cc: Mayor and City Council Post Office Box 2743 • Palm Springs, California 92263-2743 � 1 760 346 6329 BOB -TOPE CI-1RYSLER BOB -TOPE CId RY5LER CLASSIC. 08 32 00 a m 04-08�2009 1 /2 ,60.1E C.,j�S 'Z BOB HOPE CHRYSLER CLASSIC Post Office Box 86f,Rancho Miragc,California 92270 Bob Hope Classic Building,39000 Bob Hope Drive, Rancho Mirage,California 92270 (760)346-8194 • 1-888-MR B HOPE - FAX(760)346-6329 1 Web Site:vnvrv.bhcc.com • E-Mail: info@bhcc.coin • bhccadmin@bhcc.conl CLASSIC' April 8, 2009 To: Kathie Hari From: Dawn Suggs Fax: 322-8332 # Pages: 2, including this page Good morning again Kathie, Attached is the final piece For your file. Don't hesitate to give me a call if I can help in any other way. Best, SPONSORSHIP AGREEMENT Bob Hope Chrysler Classic Golf TUurnament Desert Classic Charities THIS SPONSORSHIP AGREEMENT (the "Agreement") made as of this 31" day of December 2006 (the "Effective Date"), by and between the City OF PALM SPRINGS, a California charter city and municipal corporation ("City"), and DESERT CLASSIC CHARITIES, a California non-profit public benefit corporation ("DCC"). City and DCC are sometimes hereinafter individually referred to as "Party" and are hereinafter collectively referred to as the "Parties." RECITALS A. DCC organizes and conducts an annual charity event known as the "Bob Hope Chrysler Classic," which is one of the premier celebrity pro am golf tournaments in the world and includes five days of play, and other related events, by PGA Tour professionals and well known celebrities competing on the following four challenging desert courses_ SilverRock Resort; La Quinta Country Club; Palmer Private Course at PGA West; and the Classic Club (the "Tournament"). B. City desires to enter into an agreement with DCC with respect to securing official municipal sponsorship rights of the Tournament and to obtain certain other specified sponsorship benefits on the terns and conditions as set forth in this Agreement_ NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of wluch are hereby acknowledged, the Parties hereto, intending to be legally bound . hereby, agree as follows: AGREEMENT l. Tent and Termination. (a) The term of this Agreement shall commence upon the Effective Date and, unless earlier terminated in accordance with this Agreement, shall conclude on December 31, 2009 (the "Term"). City has the option to extend the Term for a First Extension Term of three (3) years (through December 31, 2012) by delivery to DCC of written notice of City's exercise of such option on or before August 1, 2009 and a Second Extension Term of three (3) years (through December 31, 2015) by delivery to DCC of written notice of City's exercise of such option on or before September 1, 2012- The terms of the First and Second Extension Terms shall be on such terms and conditions as the Parties may mutually agree. (b) City shall have the right to terminate this Agreement if, during the Term, the stature of the Tournament has diminished such that the Tournament is no longer a PGA sanctioned event or is not covered live on a national television charnel, including The Golf Channel. City shall give sixty (60) days prior written notice to DCC of such election to terminate for such reasons. 541$421 /{� �."Wf Vll+f r'✓- .��M1�.�Sni_u (c) Either party may terminate this Agreement upon thirty (30) days written notice in the event that the other party: (i) breaches its obligations under this Agreement and such breach is not cured (if reasonably capable of being cured) within thirty (30) days of receipt of written notice of the breach; (ii) files a petition for barilcruptcy or reorganization, or such petition is filed against it; or (iii) becomes insolvent or makes an assignment for the benefit of creditors. (d) Notwithstanding any other provision of this Section, this Agreement is subject to and contingent upon funds being appropriated therefore by the Palm Springs City Council for each fiscal year covered by the Agreement, and if such appropriations are not made, this Agreement shall automatically terminate without penalty to the City. 2. Obligations of DCC: Grant of Sponsorship Rights to City. (a) Official_Municipal Tournament Sponsor- (1) Subject to the other terms and conditions of this Agreement, DCC acknowledges and agrees that from the Effective Date through the Term of this Agreement, and any Extension Term, City shall be the sole and exclusive municipal and public entity official sponsor of the Tournament and shall be recognized in all Tournament marketing and promotional materials as the sole and exclusive municipal and public agency sponsor of the Tournament_ Toward this end, and except as provided otherwise in this Section, DCC agrees that from the Effective Date through the end of the Term of this Agreement, including any Extension Term, it will not grant any official municipal or public entity sponsorship rights for the Tonunament to any other municipality or public entity or provide any city name or location information or description other than "Palm Springs" or "Palm Springs, California" in any Tournament marketing or promotional material. (2) Notwithstanding the foregoing, it is specifically understood and agreed by the Parties that the City of La Quinta is a general sponsor of the Tournament, by virtue of its ownership of the SilverRock Resort course and its pre-existing contractual designation as a general Tournament sponsor, but that the City of La Quinta shall neither be designated as an official municipal or public agency sponsor of Une Tournament, nor be recognized in any way as an official municipal or public agency sponsor of the Tournament. (b) Palm Springs Name/Logo-Type City shall be entitled to have the Palm Springs name/logo-type on all Tournament marketing and promotional materials in a size at least equal to the largest logos of other official Tournament sponsors (excepting Chrysler, PGA Tour, and FedEx). 541842 1 le (c) Official Tournament Logo It is understood and agreed by the Parties that the Palm Springs name/logo-type shall be strategically placed and positioned with the Official Tournament Logo, as generally depicted in Exhibit "B," and utilized in all Tournament marketing and promotional material. A sample graphical depiction of the Official Tournament Logo and the Palm Springs name/logo-type is set forth in Exhibit"B,"which is attached hereto and is incorporated herein by reference. (d) Palm Springs to be Identified on Certain Classic Club Merchandise It is further understood and agreed by the Parties that DCC shall direct and use its best efforts to ensure that the Classic Club golf shop adds the Official Tournament Log and the Palm Springs name/logo-type to certain golf merchandise that is sold at the Classic Club. The Palm Springs name/logo-type shall be strategically placed with the Official Tournament Logo on certain merchandise sold at the Classic Club, which placement will vary depending on the type of merchandise. Such merchandise shall include, but not be limited to, the following types of products: golf towel; golf cap; and golf t-shirt. Such merchandise containing the Official Tournament Logo and the Palm Springs name/logo-type shall be ordered from appropriate vendors and in quantities as determined by the Classic Club golf shop based on customer demand. Such merchandise shall be sold at the Classic Club during the Tournament, both within the golf shop and in Tournament merchandise tent(s), and if quantities permit year-round at the Classic Club based on customer demand. It is expressly understood by the Parties that DCC is not responsible for merchandising at the Classic Club- (e) Palm Springs Vignette The City has commissioned and produced a sixty second (:60) television vignette featuring the city of Palrn Springs, which was funded in part by a DCC contribution in the amount of approximately twenty-seven thousand dollars ($27,000) (the "Vignette"). The Vignette has been produced by the City and is ready for television broadcasting. DCC shall direct The Golf Channel to broadcast the Vignette on television during the Tournament, which shall be shown each day of the Tournament telecast (five days live) and during the taped coverage of the Tournament each evening of the Tournament (total of at least ten television broadcasts of the Vignette during the Tournament). The Vignette shall be televised by The Golf Channel during the Term of this Agreement (i.e_ years 2007, 2008, and 2009). Anytime the Tournament is re-broadcasted later in the year, the Vignette shall be included in the coverage. During Term years two and three (i.e., 2008 and 2009), DCC shall provide the City, at the City's request, up to five thousand dollars ($5,000) per year (for a total cash funding contribution of up to $10,000), which funds shall be used by City at its sole discretion for purposes of revising and/or updating the Vignette if the City determines that such revisions and/or updates become necessary. (f) Other City Sponsorship Rights Subject to the other terms and conditions of this Agreement, from and after the Effective Date through the end of the Term, DCC agrees to provide to City all of the other rights and 541942.1 3 sponsorship benefits set forth in Exhibit "A," which is attached hereto and is incorporated herein by reference. 3. Obligations of City. In consideration of the grant of the official municipal sponsorship right for the Tournament and the other promotional rights set forth herein, and the receipt of such benefits, the City agrees to the following: (a) City agrees to remit to DCC fees (the "Fees") in the aggregate amount of $725,000 over the three (3) year Term as follows: 2007, $125,000; 2008, $250,000; and 2009, $350,000. (b) The 2007 Fee shall be payable in full by City upon signing of this Agreement, Fees for the remainder of the Term will be payable in installments due on or before January 10`h of each year during the Term for the amounts specified in subsection (a) above, as it may be extended. (c) City shall not be required to make any contribution or other payment to DCC other than the Fees provided for in this Section 3 unless otherwise specifically provided herein. City's obligation to pay the Fees is also contingent upon the continued availability of City general Funds for the purpose of this Agreement and the City Council of the City appropriating sufficient funding for the services hereunder in the applicable annual budget approved by the City Council of the City. The City shall give DCC written notice of the lack of funds for such services. In the event such funding is subsequently reduced or terminated, DCC may terminate this Agreement, or reduce or eliminate services, upon thirty (30) days written notice given to City. 4. Orpanizational Services_ DCC shall provide the services customarily performed by a professional producer and organizer of golf tournaments and related events and services as are reasonably requested by City and agreed to by DCC in advance in connection with the Tournament. DCC shall exercise its best efforts to assist City to obtain maximum advantage fronx the official municipal sponsorship rights granted hereunder. 5_ Reverts. DCC shall furnish the City with a written atmual report summarizing the media coverage, number of media impressions attributed to the City during the Tournament, and the final attendance figures for the Tournament. The report shall be provided in a format acceptable to the City within ninety (90) days following the conclusion of the Tournament. 6. Trademarks/Approval of Advertising. (a) ACC recognizes and acknowledges that the City name and the designs, emblems, slogans, logos, and insignia of City and the good will associated therewith (collectively "City Rights"), have great value and are the sole property of City. and DCC agrees that it has and will claim no right, title, or interest in the same or the use thereof except the limited rights to use pursuant to the terms and subject to the conditions of this Agreement. DCC shall make no use of any City Rights pursuant to this Agreement without receiving prior approval of such usage from City after submission of the proposed usage by DCC to City reasonably in advance (but in no event less than ten (10) days in advance) of the date by which DCC wants the approval of City. 541S42 7 - (b) DCC grants City the limited right to use trademarks, trade names, service marks, or logos owned by it in connection with the promotion of the Tournament and City's role as the exclusive municipal and public entity sponsor of the Tournament. Any and all usage of such trademarks, trade names, service marks, or logos shall receive prior approval of such usage from DCC after submission in the same manner as set forth in subsection(a) above- (c) Neither Party has an interest in or right to the use of the other Party's names, marks, or logos except for the limited right of usage which each grants the other in this Agreement and each such grant is expressly limited to activities, promotions, or advertising reasonably incidental thereto. It is mutually understood that improper use of trademarks by the other Party may cause immediate and irreparable harm and will entitle the non-defaulting Party to seek injunctive relief without the necessity of posting a bond or other security. (d) Any advertising or other material prepared by one Party which contains the other Party's name or logo or which otherwise utilizes any trademark, trade name, service mark, or logo owned by the other Party will be provided to the other in advance of publication for its review_ All such materials must receive the written approval of the other Party prior to any publication of it, such approval not to be unreasonably withheld or delayed. 7. Indemnification. (a) City agrees to indemnify, defend, and hold DCC harmless from and against any and all expenses, damages, claims, suits, losses, actions. judgments, liabilities, and costs whatsoever initiated by a third party (including attorney fees) (hereinafter referred to as "Claims") arising out of. (1) City's breach, misrepresentation, or non-performance under this Agreement or City's or City's agents' negligence or willful misconduct; (2) City's representations regarding its products or services or the distribution or use of City's products or services; (3) City's use (in conforurance with the terms of this Agreement) of DCC's trade names, service marks, or logos; (4) any advertising or promotional material furnished by or on behalf of City; or (5) City's failure to comply with any third party obligations or any applicable local, state, federal, or state laws, rules, or regulations regarding any and all promotions or activities it conducts in connection with this Agreement. (b) DCC agrees to indemnify, defend, and hold City harmless from and against any and all expenses, damages, claims, suits, losses, actions, judgments, liabilities, and costs whatsoever initiated by a third party (including attorney fees) (hereinafter referred to as "Claims") arising out of. (1) DCC's breach, misrepresentation, or non-performance under this Agreement or DCC's or DCC's agents' negligence or willful misconduct; (2) DCC's representations regarding its products or services or the distribution or use of DCC's products or services; (3) DCC's use (in conformance with the terms of this Agreement) of City's trade names, service marks, or logos; (4) any advertising or promotional material furnished by or on behalf of DCC; or(5) DCC's failure to comply with any third party obligations or any applicable local, state, federal, or state laws, rules, or regulations regarding any and all promotions or activities it conducts in connection with this Agreement. (c) The provisions of this Section shall survive the expiration of the Terns, or any Extension Term, or the earlier termination of ibis Agreement. 5 541842 1 �'.J /y 8. 1 orce Matue. In the event inclement weather, or other force majeure outside the reasonable control of DCC forces DCC to conduct any activities contemplated in this Agreement at another time during the year or to cancel such activities, such a failure to hold such activities on its originally scheduled date or at all will not be treated as a breach of this Agreement. 9. Severability. If any court of competent jurisdiction finds any provision of this Agreement to be unenforceable or invalid, then such provision will be ineffective to the extent of the court's finding without affecting the enforceability or validity of this Agreement's remaining provisions. 10. Independent Contractor. DCC is and will at all times remain an independent contractor. Nothing herein contained will be construed to create an association, partnership,joint venture, relation of principal and agent, or employer and employee between City and DCC or its agents within the meaning of any federal, state, or local law. Neither Party has the right or authority to enter into any contract, conunitment or agreement, or incur any debt or liability, in the name of. or on behalf of,the other Parry. 11. Third-Party Beneficiaries. DCC and City acknowledge and agree that this Agreement is intended to benefit solely the City and DCC and therefore there are no third-party beneficiaries of this,Agreement_ 12. Notices. All notices, requests, demands and other communications required or permitted under this Agreement shall be made in writing and shall be deemed to have been duly given, made, and received only (a) when personally served. or (b) on the date specified for delivery when deposited with an overnight courier service such as Federal Express for delivery to the intended addressee, or (c)when telecopied with answer back receipt and hard copy sent in the manner set forth above, addressed as set forth below: If to DCC: Bob Hope Chrysler Classic Attn: President and Tournament Chairman Post Office Box 865 39000 Bob Hope Drive Rancho Mirage, California 92270 Telephone: (760) 346-8184 Facsimile: (760) 346-6329 If to City: City of Palm Springs Attu: City Manager 3200 E_ Tahquitz Canyon Way Palm Springs, California 92262 Telephone: (760) 323-8204 Facsimile: (760) 322-8332 13, Waiver. The failure of either Party at any time or times to demand strict perfonmance by the other of any of the terms, covenants, or conditions set forth herein shall not be construed as a continuing waiver or relinquishment thereof and each may at any time demand strict and complete performance by the other of said tears, covenants, and conditions. 6 5q IBpi I J'� 14. Assigmnent. Neither City nor DCC shall have the right to assign this Agreement to any third party without the prior written consent of the other Party, which consent may be withheld I'or any reason whatsoever. 15. Approvals. Except as provided otherwise herein, City and DCC each agree that no approvals hereunder shall be unreasonably withheld or delayed and that if there is a withholding the requesting Party shall be advised of the specific grounds therefor. 16. Governing Law. This Agreement shall be governed and construed according to the laws of the State of California. 17. Insurance. The DCC shall provide City with original certificates of insurance and endorsement evidencing coverage I'or: (a) comprehensive general liability, including spectator, advertiser, host liquor and contractual liability, with limits of no less than $1,000,000 per occurrence and $2,000,000 per aggregate combined single limit for personal injury and property damage; (b) comprehensive automobile liability, including all owned, non-owned and hired vehicles with limits of no less than $1,000,000 combined single limit; (c) statutory workers' compensation coverage meeting all state and local requirements; and (d) employer liability with limits of no less than $500,000 per occurrence. The original insurance certificates and endorsements required by (a) and (b) above shall name City as an additional named insured and shall state that the insurance carrier shall provide at least thirty (30) days advance written notice of cancellation or modification of the insurance to City and DCC. 18. Sizrificarice of headings. Section headings contained herein are solely for the purpose of aiding in speedy location of subject matter and are not in any sense to be given weight in the construction of this Agreement. Accordingly, in case of any question with respect to the construction of this Agreement, it is to be construed as though such section heading had been omitted. J 9. Entire Agreement. This writing constitutes the entire agreement between the Parties hereto and may not be changed or modified except by a writing signed by the Party or Parties to be charged thereby. 20. Authorit y. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by so executing this Agreement the Parties hereto are formally bound to the provisions of this Agreement_ 541ft4S� �f 7 IN WITNESS WIIEREOF, the Parties hereto have duly executed this Agreement as of the date first above written. City of Palm Springs Desert Charities Classic IIy. By: L� Name: David H. Ready ' Name: David J- Erwin Title: City Manager Title: President& Tournament Chairman ATTEST: _ APPROVED 6Y CITY COUNCIL mes Thompson, City Cleric Approved as to Form: Dougias C. Holland, City Attorney 5418421 ZA _ S EXHIBIT "A" CITY SPONSORSHIP BENEFITS YEAR ONE (2007) —Sponsorship Amount S125,000 • City shall be designated the Official Municipal Sponsor as provided in Section 2(a) of the Agreement. • The City's name and logo shall be included on all Tournament marketing and promotional materials as provided in Section 2(b) of the Agreement and strategically placed and positioned as provided in Section 2 (c) of the Agreement. • DCC shall direct and use its best efforts to ensure the placement of the Pahn Springs name and logo on golf merchandise as provided in Section 2(d) of the Agreement. • The City's television vignette shall be shown during the Toumament, including any taped rebroadcasts of the Tournament as provided in Section 2(e) of the Agreement. • DCC shall use best efforts to ensure that all newspaper datelines for the Tournament will be Palm Springs. • DCC shall use best efforts to ensure that all PGA Tournament releases and schedule postings will indicate Palm Springs. All press releases or communications from DCC shall indicate Palm Springs. • DCC shall use best efforts to ensure that all local newspaper ads will include the Palm Springs name/logo-type. All local newspaper ads placed by or through DCC shall include the Palm Springs name/logo type. • DCC shall use best efforts to ensure that all out-of-town newspaper ads will include the Palm Springs name/logo-type. All out-of-town newspaper ads placed by or through DCC shall include the Palm Springs name/logo-type. • DCC shall use best efforts to ensure that all out-of-town radio scheduling will include reference to the Palm Springs name. • DCC shall use best efforts to ensure that all television ads will include reference to the Palm Springs name/logo-type. All television ads placed by or through DCC will include the Palm Springs nanie/logo-type. • DCC shall direct and use best efforts to ensure that all on-air Tournament mentions by The Golf Channel announcers shall be made with reference to "the Classic Club, Palm Springs." xk • Residents of Palm Springs shall receive free admission Friday at the Classic Club with proof of residency and a$5 Saturday discount voucher. (Available at the Classic Club gate only—no advance tickets.) • 125 rounds of golf at the Classic Club annually shall be made available to City and may be used at the City's sole discretion based on availability. (Rounds valid Sunday- Thursday.) (Classic Club must have 24-hours prior notice and approval by Director of Golf, which approval shall not be unreasonably withheld.) • City or its Bureau of Tourism may place its promotional materials in the official Tournament media facility. • DCC shall use best efforts to ensure the inclusion or a hyperlink to the Palm Springs tourism website from the Classic Club's website in order to encourage members of the public to book hotel rooms in Palm Springs. DCC shall include a hyperlink to the Palm Springs tourism website from any DCC website promoting or referencing the Tournament. • Opportunity for Palm Springs hotels to be included on list of hotels and rates provided to pros, amateurs, and celebrities by the Classic Club's office. • Option for a City hospitality tent at the Classic Club at no cost to City. (Food and beverage services at additional cost to City of$60.00/per person)_ • One complimentary table for ten (10) at the Bob Hope Chrysler Classic Ball. • 10 Bob Hope Club memberships. • 25 Tournament Clubhouse badges For use at the City's discretion. (Classic Club only.) • Inclusion of the Palm Springs name/logo-type with Classic Club promotional and marketing materials, to the maximum extent possible. • A City of Palm Springs hospitality tent for residents. (Available at net cost.) YEAR TWO (2008)—Sponsorship Amount $250,000 • All sponsorship benefits as provided in Year One. • Inclusion of Palm Springs name/logo-type in all outdoor advertising, except banners. • Two-page, four-color advertorial on Palm Springs in Official Tournament Program at 110 cost to City. 114-57 • '/2 page horizontal spread in a nationally recognized golf publication as the Parties detennine at no cost to City. • Bob Hope Chrysler Classic Ball to be held at the Palm Springs Convention Center pending mutual agreement on terms between DCC and Palm Springs Convention Center_ • Two complimentary tables for ten (10) at the Bob Hope Chrysler Classic Ball. • 40-seat, City Skybox Suite at the Classic Club at no cost to City (Replaces City hospitality tent at the Classic Club in Year One.) (Exclusive of food and beverage costs_) • A Palm Springs exhibit facility at the Classic Club for businesses, development projects, and hospitality partners at no cost to City. • One Palm Springs representative to serve on the Bob Hope Classic Charitable Committee. YEAR THREE 2009 —Sponsorship Amount$350 000 • All sponsorship benefits as provided in Years One and Two. • A PGA sponsored golf clinic or other type of event for youth to be held in City. (Date and location to be determined.) Ak EXHIBIT "B" Sample Graphical Depiction of Official Tournament Logo and Palm Springs Name/Logo-Type �7 B-1 54JS4?1