2024-27 American Express Golf Tournament - Amendment 1MEMORANDUM
DATE: October 21, 2024
TO: Jon McMillen, City Manager
FROM: Marcie Graham, Marketing Manager
Cv 0"&V
CALIFORNIA -
RE: Amendment No. 1 - American Express Golf Tournament FY 24-27
Please list the Contracting Party / Vendor Name, any change orders or amendments, and the type of services to be provided. Make
sure to list any related Project No. and Project Name.
Authority to execute this agreement is based upon:
❑✓ Approved by City Council on October 15, 2024 Business Item No. 1
❑ City Manager's signing authority provided under the City's Purchasing & Contracting Policy
[Resolution No. 2023-008] for budget expenditures of $50,000 or less.
❑ City Manager's signing authority provided under the City's Personnel Policy Section 3.2 for
temporary employment positions.
❑ Department Director's or Manager's signing authority provided under the City's Purchasing Policy
[Resolution No. 2023-008] for budget expenditures of $15,000 and $5,000, respectively, or less.
Procurement Method (one must apply):
❑ Bid ❑ RFP ❑ RFQ ❑ 3 written informal bids
.❑ Sole Source ❑ Select Source ❑-1 Cooperative Procurement
Requesting department shall check and attach the items below as appropriate:
❑ Agreement payment will be charged to Account No.: In -Kind Services
❑✓ Agreement term: Start Date 11/1 /2024 End Date 06/30/2027
❑✓ Amount of Agreement, Amendment, Change Order, etc.: $$1,150,000.00
REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual
Amendments or Change Orders!
Insurance certificates as required by the Agreement for Risk Manager approval
NOTE:
Approved by:
Date:
Bonds (originals) as required by the Agreement (Performance, Payment, etc.)
Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is required pursuant
FPPC regulation 18701(2)
Business License No.
Expires:
Requisition for a Purchase Order has been prepared (Agreements over $5,000)
AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES
WITH AMERICAN EXPRESS GOLF TOURNAMENT
This Amendment No. 1 ("Amendment 1") to Agreement for Contract Services
("Agreement") is made and entered into as of the 1 day of November 2024, ("Effective
Date") by and between the CITY OF LA QUINTA ("City"), a California municipal
corporation and The American Express Golf Tournament, a 501 c3. ("Contracting Party").
RECITALS
WHEREAS, on or about November 1, 2022, the City and Contracting Party entered
into the Agreement to provide services related to the organization and production of The
American Express Golf Tournament, for a total not to exceed amount of $800,000. The
Term of the Agreement expires on January 30, 2027 ("Initial Term"); and
WHEREAS, the City and the Contracting Party mutually agree to amend Section
1.1 Scope of Services, and related Exhibit A, to include in-kind services for use by
Contracting Party's third -party vendor of the La Quinta Wellness Center multi-purpose
room for volunteers' orientation, in addition to the existing in-kind services of Police, Fire,
recycling, and marketing; and
WHEREAS, the City and Contracting Party mutually agree to amend Section 1.8
Special Requirements, and related Exhibit D, obligating the Contracting Party to adhere
to California State recycling and organics waste disposal regulations pursuant to
Assembly Bill 2176 (Stats. 2004, Ch. 879, AB 2176 Montanez) and Senate Bill 1383
(Stats. 2016, Ch. 395, SB 1383 Lara); and
WHEREAS, the City and Contracting Party mutually agree to amend Section 2.1,
and related Exhibit B, to receive in-kind services in lieu of monetary compensation for the
remainder of the Agreement Term for an additional $350,000, for a total not to exceed
amount of $1,150,000.
NOW THEREFORE, in consideration of the mutual covenant herein contained, the
parties agree as follows:
AMENDMENT
In consideration of the foregoing Recitals and the covenants and promises
hereinafter contained, and for good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, the parties hereto agree as follows:
1. Section 1.1 Scope of Services and related Exhibit A
• Permits and Inspections — Contracting Party will be responsible for post event
requirements of sand remediation in the dirt lot on Jefferson and Avenue 54.
• Addition of Facility Use — City will allow Contracting Party's third -party vendor the
use of the multi-purpose room at the Wellness Center for the volunteers'
orientation.
• In all other respects, Exhibit A to the original Agreement shall remain in full force
and effect.
2. Section 2.1 Contract Sum is amended to read as follows:
For the services rendered pursuant to this Agreement, Contracting Party shall receive
services in lieu of monetary compensation, as detailed in "Exhibit B" (the "Schedule of
Compensation") valued in the total amount not to exceed One Million One Hundred Fifty
Thousand Dollars ($1,150,000) (the "Contract Sum") during the entire Term (Section 3.4
below) of this Agreement, except as provided in Section 1.7. Regardless of the method
of compensation set forth in the Schedule of Compensation, Contracting Party's overall
compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of
this Agreement.
3. Section 1.8 Special Requirements and related Exhibit D is amended as detailed in
enclosed Exhibit D to this Amendment No. 1 to the Agreement.
In all other respects, the original Agreement shall remain in effect.
IN WITNESS WHEREOF, the City and Contracting Party have executed this
Amendment No. 1 to the Agreement on the respective dates set forth below.
CITY OF LA QUINTA THE AMERICAN EXPRESS
a California municipal corporation
SIGNED IN COUNTERPART
JON McMILLEN, City Manager PAT MCCABE
City of La Quinta, California Executive Director
Dated: Dated: 10.18.24
ATTEST:
SIGNED IN COUNTERPART
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
SIGNED IN COUNTERPART
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
• In all other respects, Exhibit A to the original Agreement shall remain in full force
and effect.
2. Section 2.1 Contract Sum is amended to read as follows:
For the services rendered pursuant to this Agreement, Contracting Party shall receive
services in lieu of monetary compensation, as detailed in "Exhibit B" (the "Schedule of
Compensation") valued in the total amount not to exceed One Million One Hundred Fifty
Thousand Dollars ($1,150,000) (the "Contract Sum") during the entire Term (Section 3.4
below) of this Agreement, except as provided in Section 1.7. Regardless of the method
of compensation set forth in the Schedule of Compensation, Contracting Party's overall
compensation shall not exceed the Contract Sum, except as provided in Section 1.7 of
this Agreement.
3. Section 1.8 Special Requirements and related Exhibit D is amended as detailed in
enclosed Exhibit D to this Amendment No. 1 to the Agreement.
In all other respects, the original Agreement shall remain in effect.
IN WITNESS WHEREOF, the City and Contracting Party have executed this
Amendment No. 1 to the Agreement on the respective dates set forth below.
CITY OF LA QUINTA
a California municipal corporation
cMILLEN, City Manager
Pity of La Quinta, California
Dated: ALO 2-A
ATTEST: Wk
MONIKA RADEVA, &.' y Clerk
City of La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
THE AMERICAN EXPRESS
SIGNED IN COUNTERPART
PAT MCCABE
Executive Director
Dated:
Exhibit A
Scope of Services
Public Safety Services
To assist the Tournament Organizer (The Organizer) for The American Express Golf
Tournament ("The American Express") in the Police and Fire Public Safety efforts during
the term of this Agreement, the City agrees to pay for Police, Fire and EMT Services.
These costs will provide a base level of public safety services for The American Express
held at the City of La Quinta golf courses. Police and Fire services are in addition to, and
do not replace or reduce The Organizer's responsibility to hire adequate security, traffic,
and parking staff to manage golf tournament and concerts. Additionally, all permits and
applications for the tournament shall be paid -by The Organizer must be submitted to the
City no later than sixty (60) days prior to the start of the tournament.
The Organizer shall also provide the following for Police and Fire:
• Office Space to set a Command Center for Public Safety on site.
• Three (3) carts be provided (1 per course) that meet the Fire Department specs.
• Tent, table, and chairs for medical operations.
Solid Waste Disposal and Recycling Services
In an effort to promote the green recycling efforts and maintain solid waste diversion
mandates of the City of La Quinta (the "City") and to supplement funding for The American
Express, the City agrees to pay for the waste and recycling fees. Additionally, it is
recommended that The Organizer have a contract for solid waste/recycle services
exclusively with Burrtec (City's provider), and the Organizer MUST submit a recycling plan
to the City sixty (60) days prior to the event start.
Permits and Inspections
The City requests and The Organizer shall comply with the following timeline regarding
various permits and inspections for The American Express:
One Hundred Twenty (120) days prior to event date: Temporary Use Permit application
submitted. This should include all submittal requirements from temporary use permit
application.
Ninety (90) days prior to event date: Submittal of Traffic Control Plan and Building and
Fire permit(s) for all applicable items (i.e. tents, stages, bleachers).
Forty -Five (45) days prior to event date: Obtain a permit from the Building Division for the
structures, tents, stage and temporary electrical installations. The Organizer shall submit
a detailed site plan showing all viewing structures, stages and tents with structure
dimensions, proposed stairways, ramps and doorways, and shall have structural
calculations prepared to the current/applicable California Building Code provided
justifying their installation. The City of La Quinta Wind Design is 110 mph (Ultimate) / 85
mph (Nominal) Exposure C and is within the Seismic Design Category D2.
Thirty (30) days prior to event date: Submittal of Encroachment permit and scheduling of
all inspections requested by Staff.
Fourteen (14) days prior to event date: Finalize structures and tents, and
prepare/schedule structural observation, and fire, health and building department
inspections. Structural Observation is required by the Engineer of Record, each structure
shall be reviewed for conformance with the approved structural calculations and have a
stamped and signed letter submitted to the Building Division prior to the event per the
requirements in Section 1704 of the 2016 California Building Code.
Post event: Sand remediation application within 7 days after event ends on parking lot at
Jefferson and Avenue 54.
Payment for any and all permits shall be made by The Organizer at the time of application
unless the Contract Officer on behalf of the City waives payment for any such permit.
Facility Use
The City will allow the use of the multipurpose room at the Wellness Center for the third -
party vendor volunteer training for four (4) days total.
Cooperative Marketing Program
The Organizer and City shall cooperatively work to develop a marketing program that will
market The American Express Golf Tournament and the City as a year-round golf resort.
Efforts shall include utilization of both the tournament website and PlayinlaQuinta.com
websites, and, to the extent feasible, shall use paid search engines to drive traffic to each
website. Each website shall have direct links to the other. The Organizer and City shall
use its best efforts to increase attendance and expand the reach of tournament
production.
The Organizer and City shall use social media. such as Facebook and Twitter, to the
maximum extent possible, to promote the tournament and all of its related activities as
well as promote the City as a premier tourist destination.
The American Express Media and Advertisina Plan
The Organizer shall submit to City its detailed Media & Advertising Plan by September 15
of each contracted year to avoid duplication efforts.
The Organizer will investigate further expanding its marketing coverage in important
regional drive markets, inclusive of Los Angeles and Orange County. The City and The
Organizer will further use best efforts working together to market the City, The American
Express Golf Tournament, and the City's lodging choices to the "driving- distance" market.
The American Express creative graphic design for ads, banners, posters, billboards, ads,
etc., shall be submitted by The Organizer to City for review and comment by October 1
of each contract year.
All artwork, radio spots, commercials, digital ads, emails, graphics and other marketing -
related tangibles using the name or description of the City, or lodgings or businesses in
the City shall be submitted to City for review and comment (if any) with at- least a two -
working day turnaround time. The Organizer shall have the obligation to secure any -
licenses from any lodgings or businesses in the City to use their names or descriptions in
any marketing -related tangibles.
The Organizer shall provide the following to the City in an effort to properly promote the
event and destination:
Tag the City location in all social media posts either by location tag or in the copy;
Allow City to use all media assets such as photos and videos
to promote tournament.
When possible, have a celebrity golf player create a Facebook live or Instagram Story
asset mentioning the City of La Quinta and The American Express.
Use radio and TV media for ads to promote The American Express and the City of La
Quinta. If radio or TV ads are created by The Organizer, The Organizer shall allow (and
hereby grants a license) to the City to use those assets to additionally promote the
tournament via radio and TV.
Branding
The Organizer will exercise its best efforts to encourage "The Golf Channel" to include
the City of La Quinta in its commercials, promotions, on -air mentions, and advertisements
in connection with their broadcast• of The American Express. Should The Organizer
produce commercials, promotions, and advertisements exclusively for The Golf Channel,
The Organizer shall incorporate the City of La Quinta name and logo on all materials as
the "host city".
The City of La Quinta name and logo shall be written as "Host City" in all The American
Express ads, when possible, to be run in local, regional and national publications that The
American Express advertises in.
The City of La Quinta name and logo will be written as "Host City" when possible, on a
variety of signage prepared for the tournament, including but not limited to: On -course
directional signs, banners located in and around Old Town/Village area, and other signs
throughout the City of La Quinta. The City will provide a set of guidelines for use of
graphics for all City advertising/marketing handled by The Organizer and said guidelines
will outline the use of City logos, scripts, photography, text, and dimensions of graphic
elements.
The City of La Quinta name and logo will be written as "Host City" when possible, on the
official tournament poster. The City will provide a set of guidelines for use of graphics for
all City advertising/marketing handled by The Organizer and said guidelines will outline
the use of City logos, scripts, photography, text, and dimensions of graphic elements.
The City of La Quinta name and logo will be written as "Host City" when possible, on all
digital and social media ads. The City will provide a set of guidelines for use of graphics
for all City advertising/marketing handled by The Organizer and said guidelines will outline
the use of City logos, scripts, photography, text, and dimensions of graphic elements.
The City of La. Quinta name and logo will be written as "Host City" when possible, on all
e-mail blasts and/or notifications from The American Express. The City will provide a set
of guidelines for use of graphics for all City advertising/marketing handled by The
Organizer, and said guidelines will outline the use of City logos, ' scripts, photography,
text, and dimensions of graphic elements.
Events & Other Promotions
The City Manager will be given twelve (12) VIP Passes that include parking passes as
well as VIP access to concerts.
The City will be given one hundred twenty-five (125) daily tickets per day Wednesday
through Sunday for the sole purpose of promoting the event. No value may be placed
upon the badges and tickets other than their face value.
Four (4) media passes for the City Marketing Manager, Marketing Specialist, and
advertising agency to promote the tournament during the event.
If there is a charitable distribution event, The Organizer will host the Charity Check
Distribution event within the City of La Quinta at a mutually agreed upon location.
In Kind Services
In an effort to move traffic in the safest and most efficient manner possible during The
American Express, the City of La Quinta agrees to supply four (4) traffic safety message
boards provided the City does not have a traffic safety event elsewhere in the City during
the tournament.
The City will install the Street Banners that promote the event and the City of La Quinta's
affiliation with The American Express within the Village area of the City. The Organizer
shall pay for any other banners to be installed elsewhere within the City of La Quinta at a
cost of $60 per banner. The cost will include installation, removal, and maintenance, as
well as a 2 -hour response time for maintenance to be completed by the City.
The City will allow The Organizer the use of vacant land space for parking and shuttle
services during The American Express on Avenue 54 and Jefferson St. The Organizer is
responsible for submitting a traffic plan for the event ninety (90) days prior to the start of
the event per Section 3(a)(ii) of these Scope of Services.
The Organizer is required to submit an event plan to the City one hundred twenty (120)
days prior to the start of the event per Section 3(a)(i) of these Scope of Services.
Exhibit B
Schedule of Compensation
Pursuant to this Agreement, Contracting Party shall receive services in lieu of
monetary compensation, as detailed in the Scope of Services Exhibit A, valued in the total
amount not to exceed One Million One Hundred Fifty Thousand Dollars ($1,150,000.00)
(the "Contract Sum") during the Agreement Term (Section 3.4).
Exhibit D
Special Requirements
Large events, drawing more than 2000 people (including employees and volunteers), are
required to provide written documentation to the City outlining waste reduction, reuse,
and recycling strategies. State law also requires that event organizers provide the City
with the type and weight of materials recycled, reused, or diverted as well as the weight
of the trash disposed of from the event per State Law AB 2176. The City recommends
working with the City's contracted waste hauler on a diversion plan to achieve the
requirements.
State Law SB 1383 requires that any event with over 2000 attendees including staff are
required to donate edible food that would have otherwise been disposed of. It is the event
organizer's responsibility to ensure that the maximum amount of edible food is recovered
(i.e. donated instead of thrown away) by the food facilities and food vendors at their event.
"Edible food" means food intended for people to eat but not sold because of surplus,
appearance, age, grade, freshness, etc. It includes prepared food, packaged food, and
produce.
Contracting Party must establish written agreements with food programs and track the
amount, frequency, and types of food donated monthly during any month in which an
Event occurs.
The state requires participation.
BUSINESS SESSION ITEM NO. 1
City of La Quinta
CITY COUNCIL MEETING: October 15, 2024
STAFF REPORT
AGENDA TITLE APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT
SERVICES WITH THE AMERICAN EXPRESS GOLF TOURNAMENT FOR 2025
THROUGH 2027 FOR IN-KIND SERVICES FOR HOSTING THE GOLF TOURNAMENT
IN LA QUINTA
RECOMMENDATION
Approve Amendment No. 1 to Agreement for Contract Services with The American
Express Golf Tournament for 2025 through 2027 for in-kind services for hosting the golf
tournament in La Quinta; and authorize the City Manager to execute the amendment.
CACVV I IVC JuiyiIVIAKY
• La Quinta has hosted the tournament at PGA West and La Quinta Country Club
since 2012.
• In November 2022, the American Express Golf Tournament (AMEX) extended its
sponsorship agreement with the City to host the golf tournament in La Quinta
through 2027.
• The City provides AMEX with in-kind services of Police, Fire, solid waste disposal
and recycling, and marketing; if approved, proposed Amendment No. 1
(Attachment 1) will add the increasing cost of police/fire services for the week-long
event, recycling requirements, and facility usage to the in-kind services and
increase the total compensation by $350,000 for the remainder of the agreement.
FISCAL IMPACT
The City currently provides no monetary compensation to host the tournament, and
instead provides the following in-kind services for the event, with an estimated value of
$800,000 over the five-year agreement term (2023-2027):
• Public Safety Services
• Solid Waste Disposal and Recycling Services
• Permits and Inspections
• Cooperative Marketing Program
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If approved, Amendment No. 1 will add an additional $350,000 in services in lieu of
monetary compensation for a total contract amount not to exceed $1,150,000 over the
five-year agreement term and add the additional police/fire services, recycling
requirements, and use of the Multi -Purpose Room at the Wellness Center to the in-kind
services the City provides.
BACKGROUND/ANALYSIS
In 2022, the City executed an agreement with AMEX to host the golf tournament in La
Quinta from 2023 through 2027, which provided services valued at $800,000 over the
five-year agreement term in lieu of monetary compensation. Since 2023, event
attendance has grown for both the golf tournament and the fan experience concerts,
which has increased the need for additional police/fire services.
Proposed Amendment No. 1 will amend Section 1.1 Scope of Services, and related
Exhibit A detailing the services the City is to provide; impose additional special
requirements under Section 1.8, and related Exhibit D, regarding recycling and organics
waste disposal; and increase the total compensation under Section 2.1, and related
Exhibit B, from $800,000 to $1,150,000 of the agreement as follows:
• Public Safety Services — In order to minimize the impact on residents and traffic,
additional services have been added since 2023 and an increase in cost of
services estimated through 2027.
• Solid Waste Disposal and Recycling Services — AMEX will adhere to California
State recycling and organics waste disposal regulations pursuant to Assembly Bill
2176 (Stats. 2004, Ch. 879, AB 2176 Montanez) and Senate Bill 1383 (Stats. 2016,
Ch. 395, SB 1383 Lara) as detailed in revised Exhibit D included in the
Amendment.
• Permits and Inspections — post -event clean up and requirements for parking lot off
Jefferson Street and Avenue 54.
• Facility Use of the Wellness Center Multi -Purpose Room —City will allow AMEX to
use the room for a four-day Volunteer orientation through the use of a
subcontractor.
ALTERNATIVES
Staff does not recommend any alternatives.
Prepared by: Marcie Graham, Marketing Manager
Approved by: Gilbert Villalpando, Director
Attachment: 1. Amendment No. 1 to Agreement for Contract Services with AMEX
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