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Home My WebLink About4/7/2004 - STAFF REPORTS (31) DATE: April 7, 2004 TO: City Council FROM: Assistant City Manager - Administration SUBJECT: Approve Fourth Amendment to Agreement for Operations of the Palm Springs International Film Festival. RECOMMENDATION: It is recommended that the City Council approve an amendment to the agreement with the Palm Springs International Film Festival extending the term of that agreement for one (1) year. SUMMARY: Since 1992, the City has had an agreement with the Palm Springs International Film Festival for the organization, management and production of an annual film festival. The original term of that Agreement was for five (5) years expiring on June 30, 1997. The City Council has amended the term of the agreement several times over the years the most recent being September 30, 2003. Under the existing amendment, the agreement will expire on June 30, 2004. The Film Festival's Board of Directors has requested that the City consider renewing its sponsorship for an additional year. BACKGROUND: The Palm Springs International Film Festival is one of the largest film festivals in North America. The festival has an attractive film sales and distribution record and because it is held in January it is seen by many as a prelude to the Academy Awards. This year's festival, which was held January 8-19, 2004, screened more than 200 films from 65 countries. According to the festival organizers, a record number of people, over 86,000, attended this year's event. DISCUSSION: Historically, the City has paid $250,000 to organize, manage and produce the Film Festival. Last year, Nortel, the Film Festival's title sponsor, terminated its sponsorship. In response to Nortel's decision, the City Council agreed to increase its contribution to $350,000 a year to become the title sponsorship of the event. This amount is payable in several installments throughout the year. The existing agreement with the Film Festival will expire on June 30, 2004. The Film Festival's Board of Directors would like the City to renew its title sponsorship and has requested a one (1) year extension to the agreement. / The proposed amendment extends the term of the agreement through June 30, 2005. In addition, staff is recommending several changes to Exhibit "A" Scope of Services. While most of these changes are relatively minor and are intended to clarify existing language, staff believes that the following provisions should be added to the Scope of Services. • A requirement that the City be recognized as Title Sponsor in the Film Festival's Daily Newspaper (CINE/file). • A requirement that the Film Festival provide the City twenty (20) screening passes allowing access to all film screenings and seminars as the parties agree is necessary in order for City to fully enjoy the benefits of sponsorship. • A requirement that the Film Festival provide City two (2) tables of ten seats each to the Awards Gala. Staff has submitted a draft of the proposed amendment and revised Scope of Services to the Film Festival for their review. Staff has not received any comments from the Film Festival as of the publication of this report. If the City Council approves the proposed amendment, staff will include the City's contribution as part of the Fiscal Year 2004-05 budget. Tro L. Butzl� Jistant City Manager �APPROVE � City Manager Attachments: 1. Minute Order 2. Fourth Amendment 2 FOURTH AMENDMENT TO AGREEMENT FOR OPERATION OF PALM SPRINGS INTERNATIONAL FILM FESTIVAL This Fourth Amendment to Agreement for Operation of Palm Springs International Film Festival ("Fourth Amendment" or "Amended Agreement") is made and entered into this 7th day of April, 2004, by and between the CITY OF PALM SPRINGS, a municipal corporation('City") and the PALM SPRINGS INTERNATIONAL FILM FESTIVAL ('Festival') and amends that certain "Agreement for the Operation of the Palm Springs' International Film Festival' (the "Original Agreement") dated April 1, 1992 between the same parties, as amended on February 19, 1997 (`First Amendment"), September 18, 2002 (`Second Amendment") and September 30, 2003 (`Third Amendment"). The Original Agreement, the First, Second and Third Amendment are collectively referred to in this Fourth Amendment as the "Agreement". RECITALS A. On or about April 1, 1992, City and Festival entered into an Agreement for Operation of the Palm Springs International Film Festival pursuant to which Festival agrees to organize, manage and produce an annual Palm Springs International Film Festival in January of each year during the tern of said agreement and the City agreed to compensate Festival for such services. S. The original term of the Agreement was five (5) years expiring on June 30, 1997. C. The Agreement was amended on February 19, 1997, by the First Amendment, which among other things extended the tern for an additional five (5)years to June 30, 2002. D. The Original Agreement was again amended on September 19, 2002, by the Second Amendment, which among other things extended the teen of the Agreement to June 30, 2003. E. The Original Agreement was further amended on September 30, 2003, by the Third Amendment, which among other things extended the term of the Agreement to June 30, 2004. F. City and Festival desire to amend the Agreement to extend the City's financial support for one (1) year as set forth in this Fourth Amendment. AGREEMENT The Agreement is hereby amended as follows: 1. Section 3.2 "Terms" is amended to read as follows: "3.2 Tenn. The teen of this Agreement shall is hereby extended to June 36, 2005, provided that this Agreement shall tenninate on the occurrence of the event of termination specified in Section 3.3 below." 2. Exhibit "A," the Scope of Services, shall be amended and replaced with the new Exhibit"A," attached hereto and incorporated herein. 3. Except as expressly provided herein, all other terns and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto executed this Second Amendment to be effective as of the Date first written above. CITY OF PALM SPRINGS, amunicipal corporation By: City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney PALM SPRINGS INTERNATIONAL FILM FESTIVAL By: Name: Title: EXHIBIT "A" SCOPE OF SERVICES Festival shall organize, manage and produce an armual Palm Springs International Film Festival ("Film Festival") in January of each year during the tenn of this Agreement. The Film Festival shall include the screening of motion pictures and holding related events, such as opening ceremonies, closing ceremonies, and awards banquets. Festival's responsibilities shall include,but not be limited to, the following: Plamiing the Film Festival and developing the annual schedule, budget and theme in consultation with the City. The proposed schedule, budget and theme shall be submitted to the City on or before October 15 of each year. Soliciting sponsorships in an effort to defray the cost of the Film Festival. Securing the necessary facilities for the Film Festival, including theaters, in consultation with the City. Promoting the Film Festival in consultation with the City's Department of Tourism. Coordinating security for the Film Festival in consultation with the City. Providing financial and progress reports on the status of the Film Festival to the City on a quarterly basis. Distributing at least 300 free weekday passes to local clubs and organizations to view films being screened at the Film Festival. The Film Festival shall, at a minimum, meet the following criteria: 1. Sell a minimum of 20,000 tickets. 2. Have annual revenues of at least $100,000.00, excluding revenues from sponsorships. 3. Screen a minimum of 80 films. At least fifteen (15) of such films shall be national premieres and five (5) shall be world premieres. 4. Be financially viable with the $350,000 contribution by the City. 5. Have at least one free public screening. The City shall be recognized as the sponsor of the free public screening. 6. The City shall be recognized as the "Title Sponsor" in all advertising. For promotional proposes the Film Festival shall include the following credit line in all paid media (advertising), publications, and signage: "Presented by the City of Palm Springs." 7. The City shall be recognized as the Title Sponsor at or near the entrance(s) of the primary venue site. 8. The City shall receive name recognition on the media interview backdrop placed in the media room for the Film Festival. 9. The City shall be identified on a credit line prominently presented on the Fihn Festival's website page which features exhibit information. There shall be a hyperlink from the Film Festival's web site to the City's web site at www.ci.palm-sprin sg ca.us. The parties agree that said link may be "Framed" whereby material or pages from the linked web site appear in a frame on the site which creates the link. The parties expressly recognize their individual obligations and responsibilities for the content, quality, accuracy or completeness of materials contained on their respective web sites and agree to hold each other harmless from any special, indirect, incidental or consequential damages that may arise from the use of, or the inability to use, the respective sites and/or the materials contained on either site whether the materials contained on the site are provided by the City or the Film Festival. 10. The Film Festival shall provide City twenty(20) credentials allowing access to all film screenings, seminars, and receptions including but not limited to the Opening and Closing Night Screening, Awards Gala and VIP Reception. 11. The Film Festival shall provide City twenty (20) screening passes allowing access to all film screenings and seminars as the parties agree is necessary in order for City to fully enjoy the benefits of sponsorship. 12. The Film Festival shall provide City two (2) tables of ten seats each to the Awards Gala. 13. The City shall be positioned as Title Sponsor in all advertising. Examples of advertising include, but are not limited to: a. Program — City shall receive space to place one (1) full-page four-color advertisement on the inside front and back cover of the Film Festival's official program for marketing and promotion purposes. In addition, City shall receive space to place a "Welcome Letter" within the Official Program. b. Film Festival Daily Newspaper — City shall be positioned as the Title Sponsor in the banner of the Film Festival Daily Newspaper (CINE/file). C. Newspaper Advertising — City shall receive each day during the Film Festival a one-quarter (1/4) page black and white advertisement in the film section of the Desert Sun or other newspaper as the parties agree. d. Radio/Television Advertising — City shall be mentioned as Title Sponsor in all radio spots and television ads relating to the Film Festival. 1 i MINUTE ORDER NO. APPROVING THE FOURTH AMENDMENT TO THE AGREEMENT FOR OPERATIONS OF THE PALM SPRINGS INTERNATIONAL FILM FESTIVAL FOR THE PURPOSE OF EXTENDING THE TERM OF THAT AGREEMENT FOR ONE (1) YEAR. --------------- I HEREBY CERTIFY that this Minute Order, approving the Fourth Amendment to the Agreement for operations of the Palm Springs International Film Festival for the purpose of extending the term of that agreement for one (1) year was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 7ch day of April, 2004. PATRICIA A. SANDERS City Clerk 3