HomeMy WebLinkAbout11/7/2007 - STAFF REPORTS - 2.R. OE PALM s
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• C44Z1FORN City Council Staff Report
DATE: November 7, 2007 Consent Calendar
SUBJECT: APPROVAL OF SPONSORSHIP AGREEMENT WITH BOB HOPE
CHRYSLER CLASSIC
FROM: David H. Ready, City Manager
BY: Assistant City Manager-- Administrative Services
SUMMARY
Last year, the City Council approved a sponsorship "term sheet" and authorized
staff to prepare an agreement with the Bob Hope Chrysler Classic to sponsor
this internationally recognized golf tournament for a three year term, beginning in
2007. Following Council approval of this matter, City staff, in conjunction with
the City Attorney's Office, began work on a sponsorship agreement. For the past
several months, the City has been working with an attorney representing the Bob
Hope Chrysler Classic to finalize an agreement. Although there were some
issues with the original language in the agreement, a final agreement has now
been drafted. Because some of the original terms have been slightly modified,
staff felt that the City Council should review and approve the final agreement.
This action would reaffirm the sponsorship with the Bob Hope Chrysler Classic
and approve the final agreement.
RECOMMENDATION-
1. Approval of the agreement with the Bob Hope Chrysler Classic for
sponsorship of the 2007-2009 Bob Hope Chrysler Classic Golf
Tournaments.
2. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
The "'Bob Hope Chrysler Classic"' is a PGA Tour golf tournament played each
January. It is part of the Tour's early season West Coast swing and is also well
known for its celebrity pro-am. Founded as the "'Palm Springs Golf Classic"' in
1960, the tournament evolved from the Thunderbird Invitational that was held in
ITEM NO.
City Council Staff Report
November 7 -- Page z
Reaffirmation of Sponsorship Agreement with Bob Hope Chrysler Classic
Palm Springs from 1954 to 1959. The tournament format remains unique among
PGA Tour events, being played over five days and four different courses
On December 13, 2006, the City Council agreed to be the "official municipal
sponsor" of the Bob Hope Chrysler Classic golf tournament. The initial term of
this agreement was for a three year period, beginning in 2007 and included an
option to extend after the third year for an additional 7 years. As the sponsorship
contract was not yet created, Council approved a "term sheet" (Exhibit C) of the
sponsorship benefits and directed staff to prepare the actual agreement with the
Bob Hope Chrysler Classic.
Staff has been working, in conjunction with the City Attorney's Office, to draft a
sponsorship agreement with the Bob Hope Chrysler Classic based on the
Council approved term sheet. Due to extenuating circumstances beyond the
control of both parties, it has taken much longer to finalize the agreement than
originally anticipated. In addition, several of the key benefits, which were part of
the original term sheet, needed to be modified to reflect certain changes that
occurred following the 2007 tournament. Specifically, a provision was added to
the agreement providing the City a credit of up to $5,000 per year, beginning in
2008, that can be used to revise and/or update the sixty (60) second vignette
that was produced for airing on the Golf Channel during the tournament. In
addition, clarification was added to the agreement regarding the type of golf
merchandise that would be identified with the Palm Springs name/logo-type.
Finally, Exhibit "A" to the agreement was slightly revised to clarify the intent of
the parties with respect to some of the benefits and how these benefits were to
be provided. Staff believes that the changes that have been made to the
Agreement or Exhibit, are merely clarification in nature, and do not materially
affect the originally agreed upon terms of the sponsorship agreement. A copy of
the final Agreement and Exhibit is attached.
FISCAL IMPACT:
This is a budgeted expense within the current fiscal year. No additional funds
are required.
Tro L. Butzlaff,�A s stant City Manager David H_ Ready, Cial _av ager
Attar ments:
1. Sponsorship Agreement
2
SPONSORSHIP AGREEMENT
Bob Hope Chrysler Classic Golf'fournament
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 terms 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 which are hereby acknowledged, the Parties hereto, intending to be legally bound
hereby, agree as follows:
AGREEMENT
I. Term 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 Tenor 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 channel, including The Golf
Channel. City shall give sixty (60) days prior written notice to DCC of such election to
terminate for such reasons.
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8. Force Maieure. 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 schedtded 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, commitment or agreement, or incur any debt or liability, in
the name of, or on behalf of, the otber Party.
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
Attn: 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
performance 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 terms, covenants, and conditions.
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(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 conformance 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 Term, or any
Extension Term, or the earlier termination of this Agreement.
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(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 Parry 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 conformance with the temrs 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 Term, or any
Extension Term, or the earlier termination of this Agreement.
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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 "Pees") 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.
Pees for the remainder of the Term will be payable in installments due on or before January I Oh
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 Pees provided for in this Section 3 unless otherwise specifically provided herein_
City's obligation to pay the Pees 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, Organizational 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
Toumament. DCC shall exercise its best efforts to assist City to obtain maximum advantage
from the official municipal sponsorship rights granted hereunder.
5. Reports. DCC shall furnish the City with a written annual 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) DCC 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 Fights 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.
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(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 S rin s Vignette
The City has commissioned and produced a sixty second (:60) television vignette
featuring the city of Palm 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 Tetra 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 Binds 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 Ri is
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
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14. Assi meat. 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,for 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.
IT Insurance, The DCC shall provide City with original certificates of insurance and
endorsement evidencing coverage for: (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. Siw-ificance of Headiness. 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.
19. 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. Authority. 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.
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IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of
the date first above written.
City of Palm Springs Desert Charities Classic
By: By:
Name: David H. Ready Name: David J. Erwin
Title: City Manager Title: President& Tournament
Chairman
ATTEST:
James Thompson, City Clerk
Approved as to Form:
uglas C. Holland, City " torney
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EXHIBIT "A"
OTHER CITY SPONSORSHIP BENEFITS
YEAR ONE (2007)—Sponsorship Amount$125,000
• 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.
• DCC shall use best efforts to ensure that all local newspaper ads will include the Palm
Springs name/logo-type.
• DCC shall use best efforts to ensure that all out-of-town newspaper ads will include the Pahn
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 offorts to ensure that all television ads will include reference to the Pahn
Springs name/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."
• 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 of 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.
5118111 o-1 7.7.
• 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 );lope 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.
• Option for 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.
■ Option for two-page, four-color advertorial on Palm Springs in Official Tournament Program
at no cost to City.
• Option £or '/2 page horizontal spread in a nationally recognized golf publication as the Parties
determine 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_
• Option for 40-seat, City Skybox Suite at the Classic Club at no cost to City (Replaces City
hospitality tent in Year One_) (Exclusive of food and beverage costs.)
• Option for Palm Springs exhibit facility at the Classic Club for businesses, development
projects, and hospitality partners at no cost to City.
• Option for a Palm Springs representative to serve on the Bob Hope Classic Charitable
Committee.
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YEAR THREE (2009)—Sponsorship Amount$350,000
• All sponsorship benefits as provided in Years One and Two.
• Option for a PGA sponsored golf clinic or other type of event for youth to be held in City.
(Date and location to be determined)
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EXHIBIT "B"
Sample Graphical Depiction of
Official Tournament Logo and Palm Springs Name/Logo-Type
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I T3Q 3456399 BOB HgPE CHRYSI FF: B;IH HOPE CI IRYSIFr.CLASSIC 05012-3 M 1212.20GG 214
�i �r1 r rr rs
BOB HOPE CHRYSLER CLASSIC
SPONSORSHIP TERM SHEET
The following is a draft of a proposed Term Sheer, for discussion purposes,to outline a
Sponsorship Agreemcnt To be entered into between the City of Palm Springs and the Bob
Hope Cbrysler Classic.
General,Terms: Three (3)year, C725,000 agreemew wish opCidn pt renew, at Cit.yy's reguss �
far an additiwr Tvaa R' +wry{ xI Ov r/p Wj c[+ Z' UZ
par
SPONSORSHIP )BENEFITS TO CITY
YEAR ONE (2002)—Sponsorship Amount 5125,000
• Palm Springs name to be strategically positioned with the Official Tournament Logo and
utilized in all marketing,promotional and product merchandise as agreed to by the parties
to the sponsorship agreement-
• All newspaper darelincs for the Tournament will be Palm Springs.
• All PCYA TOUR releases and schedule postings will indicate Palm Springs_
• All local newspaper ads include City of Palm Springs logo.(975" schedule with Desert
Sun)
• All out of town newspaper ads include City of Palm Springs logo (Milltiple 114 page ads
in the Orange County Register(circ,300,000), San Bemardino Sun(cire. 30,000) and LA
County News)
• Out of town radio schedule includes City of Palm Springs in spot—KFRG
sebedule/promotion and name inclusion on their website-
• All television ads include City of Palm Springs logo.
• Golf Channel will produce a:60 vignette on Palm Springs,whioh will be shown each day
of the telecast (5 days live)and during the taped coverage each evening(total of 10 times),
• Anytime tournament is replayed later in the year, ;b0 vignette will be included in
coveragc. (date to be determined)
• On-air mentions by Golf Channel announcers would be Classic Club,Palm Springs.
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17=iO3Ae 632D. BOB I IQ pECH4Y5LFR BOB HOPI OHRYSLEK CLASSIC 0501-60piv 12.17-2110d 314
• Residents of Palm Springs Would rcceivc free admission Friday at the Classic Club with
proof of tesidcuce and a$5 Saturday discount voucher Available at the Classic Club
gate only—no advance tickets.
• 125 Bounds of golf at the Classic Club annually to be used at the City's discretion based on
availability. hounds valid Sunday-Thursday. Must have 24 hours prior notice and
approval by lltractor of Golf.
• Collateral material on the City oFPalrn Springs for media partners. Estimate 250+
members ofthe media.
• Inclusion ofhyperlinit to PS Tourism Website from the Classic websiteto encourage
members of the public to book hotel roams in Palm Springs-
• Opportunity for Palm Springs hotels to be included on list of hotels and rates provided to
pros, amateurs and celebrities by the Classic office-
• Option for hospitality tent aL the Classic Club at no cost to City(food and bavcragc
services at additional cost of$60.00/per person),
• One complimentary table for ten (10)at the Bob I-lope Chrysler Classic Ball.
• 10 Bob Plopc Club memberships-
• 25 Clubhouse badges for use at the City's discretion.
Inclusion of Palm Springs with Classic Club marketing materials, if, and when passible,
• Option for a City of Palm Springs tent for residents-available at net cost.
YEAR TWO 008 —Stionsorship Amount S250 000
• All sponsorship benefits as provided in Year OrWr-
�D/ oa
• Inclusion of Palm Springs name in all oVVotdoor advertising,"exzepera.
• Option for two-pago four-color advertorial on Palm Springs in Official Tournament
Program at no cost to City.
K 1
• Option for%x page horizontal spread in o atnpatah}e publication as the
parties dctcrtnine at no cost to City.
• Bob Hope Chrysler Classic Ball to be held at the Palm Springs Convention Center
pending agreement on terms,
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1 650 34C 6370 BOB Hn PECHRYSLCR BOB I Iopc CHRYSIEr.CLASSIC. 05 01 55 p m 12-12-2006 Ala
• Two complimentary tables for ten(10) at the Bob Hope Caryslcz Classic Ball.
• Option for d0-seat Skybox Suite at the Classic Club at no cost to City(replaces hospitality
tent).
• Option for Peibn Springs exhibit area for businesses, development projcct's and hospitality
partners at no cost to City.
• Option for a Palm Springs representative to serve on the Bob Hope Classic Charitable
Committee.
YE AV THREE (2009),=Sponsorship Amount$350,000
• Ali sponsozship benefits as provided in fears One and Two.
• Option for a PGA sponsored golf clinic or other type of event for youth to be bold in City
(Date and Location to be.detcrmincd)-
Term Sheet Not Binding. Nothing herein shall constitute a legally binding obligation of i
either party to enter into a Sponsorship Agruemcnt,and no party shall be legally bound to the I
otbet unless and until a definitive agreement shall have been duly authorized, executed and
delivered by the parties-
IN WITNESS WHEREOF, the parties hereto have caused this Term Shect to be executed by
their respective duly authorized officers or representatives this day of December,2006:
CITY OF PALM SPMGS
I3y:
City Manager
BOB HOPE CHR ER CLASSXC
By C�
azure
i r7
Name:
Tide:. P4,1 Y1
This Agreement must be signed in the above space by one of the fallowing:Bxeccdve Director,Secretary,Chief Financial
Officer or any Assistant xressurcr.
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