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HomeMy WebLinkAboutPacific Shoreline Marathon, LLC - PSM - 2007-06-04 Council/Agency Meeting Held: / Y Deferred/Continued to: *ApprpyeH ❑ Conditionally Approved ❑ Denied tP rlerW Sign ure Council Meeting Date: December 17, 2012 Department ID Number: CS 12-015 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Janeen Laudenback, Interim Director of Community Services SUBJECT: Approve and authorize execution of a contract amendment with Pacific Shoreline Marathon, LLC to conduct the annual Surf City USA Marathon Statement of Issue: The City has a contract with Pacific Shoreline Marathon, LLC, to operate the annual Surf City Marathon. There is a need to amend the current agreement to establish a fee schedule for use of the beach parking lot and the Exclusivity clause to include a "first right of refusal" provision to manage other marathon or half-marathon events in the City. Financial Impact: Not Applicable Recommended Action: Motion to: Approve and authorize the Mayor and City Clerk to execute "Amendment No. 2 to Agreement Between the City of Huntington Beach and Pacific Shoreline Marathon, LLC to Provide the Surf City USA Marathon in Huntington Beach." Alternative Action(s): Do not approve contract Amendment No. 2 with Pacific Shoreline Marathon, LLC. Item 32. - I xB -266- REQUEST FOR COUNCIL ACTION MEETING DATE: 12/17/2012 DEPARTMENT ID NUMBER: CS 12-015 Analysis: Huntington Beach has hosted the Surf City USA Marathon (formerly known as the Pacific Shoreline Marathon) since 1996. The event is operated by Pacific Shoreline Marathon, LLC (PSM). The event has realized steady growth since the inaugural event, bringing in runners for all 50 states and several foreign countries. The event also has a large local participant base. The event also has the 10t" largest half-marathon participation base in the nation. The event makes use of the city beach parking lot between Huntington Street and Beach Boulevard for staging and the expo. As with other Specific Events utilizing the lot, event organizers are subject to pay a fee for use of the lot in order for the City to maintain parking revenues. These fees are normally set during the Specific Event review process. Since the agreement with PSM is for multiple years, there is a need to amend the language to set specific fees through the duration of the agreement. Doing so, will assist the City in determining projected revenues and assist the promoter in determining operating expenses for the marathon. In the off season, events are charged reduced rate since they generate additional parking revenue during times when the beach lots are not in high demand. Historically, the fee has been approximately 50 percent of the normal day rate for parking spaces utilized for non- parking purposes - event participants however, pay the established parking rate of $15. Through negotiations with PSM, fees for use of the lot will start at approximately 51 percent of the established fee of $15 per space per day and increase approximately 10% annually through the duration of the agreement and will cap at 66% of the established rate. Should City Council adopt a fee higher than $15 in the future, the rates will be adjusted accordingly. The proposed fee rates are as follows: 2013 $7.70 per space per day 2014 $8.50 per space per day 2015 $9.30 per space per day 2016 — 2018 $10.00 per space per day The Surf City USA Marathon has been a premier event in the City for several years. The event is a favorite amongst runners and has sold out the last two years. In order to maintain participation levels the terms of the current agreement the Surf City Marathon is the only recognized marathon and half-marathon to be conducted in the City three months prior and three months after the event. In order to maintain the participant base and ensure the success of future events, PSM has requested that they be given a "first right of refusal" to manage any other marathon or half-marathon in the City that may be proposed during the term of the agreement. Due the quality of the event and the professional expertise of PSM, staff is recommending that the exclusivity language in the agreement be amended as requested. The current agreement expires after the 2015 event. As part of this amendment, a term extension of 2013 through 2018 is being recommended, with an option to extend an additional five-year period. Termination language will remain the same, giving either party the option to terminate the agreement with eleven (11) months prior written notice. The City HB -267- Item 32. 2 REQUEST FOR COUNCIL ACTION MEETING DATE: 12/17/2012 DEPARTMENT ID NUMBER: CS 12-015 also has the option to terminate the agreement upon thirty (30) days written notice for not performing to the conditions of the agreement. Staff is recommending approval of Amendment No. 2 as attached. Environmental Status: Not Applicable Strategic Plan Goat: Enhance economic development Attachment(s): 1. "Amendment No. 2 to Agreement Between the City of Huntington Beach and Pacific Shoreline Marathon, LLC to Provide the Surf City USA Marathon in Huntington Beach." Item 32. - 3 HB -268- ATTACHMENT # 1 AMENDMENT NO. 2 TO AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND PACIFIC SHORELINE MARATHON TO PROVIDE THE SURF CITY USA MARATHON IN HUNTINGTON BEACH THIS AMENDMENT NO. 2 is made and entered into by and between the City of Huntington Beach, a California municipal corporation,hereinafter referred to as"CITY," and Pacific Shoreline Marathon, a limited liability corporation, hereinafter referred to as "PSM." WHEREAS, CITY and PSM are parties to that certain agreement, dated June 4, 2007, entitled"Agreement Between the City of Huntington Beach and Pacific Shoreline Marathon to Provide the Pacific Shoreline Marathon in Huntington Beach," which agreement shall hereinafter be referred to as the "Original Agreement;" and CITY and PSM are parties to that certain agreement, dated November 16, 2009, entitled"Amendment No. 1 to Agreement Between the City of Huntington Beach and Pacific Shoreline Marathon to Provide the Surf City USA Marathon in Huntington Beach,"which agreement shall hereinafter be referred to as "Amendment No. 1;" and Since the execution of the Original Agreement and Amendment No. 1, CITY and PSM wish to set specific fees for use of the beach parking lot in paragraph 2 entitled "Permit Fees and Direct Costs" and extend the term thereof in accordance with paragraph 3 entitled"Term; Extension," and to add a "first right of refusal" clause to manage other proposed marathons or half marathons in accordance with paragraph 4 entitled "Exclusivity." 11-2839.001/85895 1 NOW, THEREFORE, it is agreed by CITY and PSM as follows: 1. Paragraph 2 of the Original Agreement to be amended to read as follows: 2. PERMIT FEES AND DIRECT COSTS a) (No change) b) (No change) c) PSM shall pay for each parking space impacted by the expo structure located within the beach parking lot for the duration of the EVENT. The fee will be adjusted approximately 10% annually and will cap at 66% of the established parking rate of$15 per space per day as approved by City Council. Parking fees will be paid based upon the following schedule based upon the current established fee: 2013 $7.70 per space per day 2014 $8.50 per space per day 2015 $9.30 per space per day 2016-2023 $10.00 per space per day The fee structure above may be adjusted in years 2016 through 2023 should City Council adopt a fee higher than $15 per space per day. In such case, PSM will be responsible for paying a rate equal to 66% of the established parking rate. 2. Paragraph 3 of the Original Agreement is hereby amended to read as follows: 3. TERM; EXTENSION This Agreement shall apply to the EVENT for the years 2013 through 2018, and shall remain in effect until February 15, 2018 (or later in the year if the parties mutually agree to hold the EVENT on a subsequent date in the year). This Agreement will automatically be extended for an additional five-year period to include the years 2019 through 2023, unless either party gives notice to the other of its desire to review at least six months prior to the termination date. 11-2839.001/85895 2 This Agreement may be terminated by either party with eleven(11) months prior written notice to the other party, or within eleven(11)months of the next EVENT date if both parties mutually agree on conditions of termination. However, CITY may also terminate this Agreement upon thirty (30) days prior written notice to PSM if: a) PSM fails to comply with the conditions of approval for the EVENT, or b) PSM fails to pay assigned fees in advance of the event, as set forth each year by the Specific Events Committee and approved by the Community Services Director, or c) after review by the Specific Events Committee and subsequent evaluation by the City Council, PSM's performance is determined to be below the standards consistent with the management of a first class professional sporting event. Factors to be considered in any such determination may include, but are not limited to: compliance with the conditions of approval for the EVENT as set forth by the Specific Events Committee; timely payment of fees; compliance with all health and safety requirements; and successful response to community access issues. 3. Paragraph 4 of the Original Agreement is hereby amended to read as follows: 4. EXCLUSIVITY For the term of this Agreement,the sole, exclusive and only recognized Olympic-distance marathon and half-marathon to be conducted on public property in CITY three (3) months prior and three (3) months following the EVENT shall 11-2839.001/85895 3 be the Pacific Shoreline Marathon. In addition to managing EVENT,PSM shall have first right of refusal to manage any other marathon or half-marathon in CITY that may be proposed during the term of this Agreement. 4. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement and Amendment No. 1 shalt remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on PACIFIC SHORELINE MARATHON, a CITY OF HUNTINGTON BEACH, a limited liability company municipal corporation of the State of California By: A. Jm t Mayor print name ITS: (circle one)Chairman/PresidentfVice President AND Cy Clerk By.- �2 INITIAT' D PROVED: h �uL print name Director of Co unity Services ITS: (circle one Secret Chief Financial Officer/Asst. Secretary-`treasurer APPROVED AS TO FORM: City Attorney REA. : APPROVED: Yty Manager 11-2839.001/85895 4 ® City ®f Huntington Beach 2000 Main Street ® Huntington Beach, CA 92648 a (714) 536-5227 ® wwA,.huntingtonbeachca.gov v Office of the City Clerk ® Joan L. Flynn, City Clerk December 20, 2012 Pacific Shoreline Marathon Attn: Don Gerould 3300 Via Lido Newport Beach, CA 92663 Dear Mr. Gerould: Enclosed for your records is a copy of the fully executed "Amendment No. 2 to Agreement Between the City of Huntington Beach and Pacific Shoreline Marathon to Provide the Surf City USA Marathon in Huntington Beach." Sincerely, Joan L. Flynn, CMC City Clerk JF:pe Enclosure G:followup:a-nntltr Sister Cities: Anjo, Japan ® Waitakere, New Zealand S Council/Agency Meeting Held: 1/ Deferred/Continued to: Ap oved ElConditionally Approved ❑ Denied Cit lerk' Signat r Council Meeting Date: 11/16/2009 Department ID Number: CS 09-014 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY C#ES MEMBERS / G SUBMITTED BY: FRED A. WILSON, CITY ADMINIST PREPARED BY: JIM B. ENGLE, COMMUNITY SERVREC'TO SUBJECT: APPROVE FIVE-YEAR CONTRACT EXTENSION FOR PACIFIC SHORELINE MARATHON LLC TO CONDUCT THE kRF CITY USA MARATHON IN HUNTINGTON BEACH Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis, Environmental Status,Attachment(s) Statement of Issue: The City has a contract with Pacific Shoreline Marathon, LLC, to operate the Surf City USA Marathon, which also includes a half marathon, 5K run, children's run, and lifestyle expo. The current contract expires after the 2010 event. The organizers have indicated that they wish to proceed on the extension option in the contract. Funding Source: N/A Recommended Action: Motion to: Approve five-year contract extension with Pacific Shoreline Marathon LLC to operate the Surf City USA Marathon in Huntington Beach for the years 2011 to 2015. Alternative Action(s): Do not approve contract extension with Pacific Shoreline Marathon LLC. Analysis: Huntington Beach has hosted the Surf City USA Marathon (formerly known as the Pacific Shoreline Marathon) since 1996 on Super Bowl Sunday. The event includes a marathon, half marathon, 5K run, children's run, and lifestyle expo. In 1997, the event attracted 2,400 participants. It has grown steadily and, in 2009, there were over 18,000 participants. Runners in the 2009 event arrived in Huntington Beach from all 50 states and 33 foreign countries. There is also a large local participant base. The Surf City USA Marathon event has the 10th largest half-marathon participant base in the nation. REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 11/16/2009 DEPARTMENT ID NUMBER: CS 09-014 The current contract expires after the 2010 event. The organizers have indicated that they wish to proceed on the extension option in the original contract. The original contract called for a three-year extension. This contract will, instead, be for five years. The extension will be from 2011 through 2015. The Surf City Marathon is important in bringing revenue to the City during the off-season. Local non-profit organizations have benefitted with over $100,000 in direct donations from the event. The promoter pays all direct city costs. Conditions for the event are reviewed through the Specific Events Committee on an annual basis. It is during this process that the required insurance is approved. The promoter has done an exceptional job of operating and expanding the event. The extension allows the promoter to enter into long-term deals with sponsors that will help ensure the future of the event in Huntington Beach. Strategic Plan Goal: Approval of this contract extension would Enhance Economic Development. Environmental Status: N/A Attachmentls): • - Rumber N 0. Description 1. Amendment No. 1 to Agreement Between the City of Huntington Beach and Pacific Shoreline Marathon to Provide the Surf City USA Marathon in Huntington Beach -2- 11/3/2009 2:24 PM ATTACHMENT # 1 AMENDMENT NO 1 TO AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND PACIFIC SHORELINE MARATHON TO PROVIDE THE SURF CITY USA MARATHON IN HUNTINGTON BEACH THIS AMENDMENT No.l is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City", and Pacific Shoreline Marathon, a limited liability corporation,hereinafter referred to as "PSM." WHEREAS, City and PSM are parties to that certain agreement, dated June 4, 2007, entitled "Agreement Between the City of Huntington Beach And Pacific Shoreline Marathon to Provide the Pacific Shoreline Marathon in Huntington Beach" which agreement shall hereinafter be referred to as the "Original Agreement,"and Since the execution of the Original Agreement, City and PSM wish to extend the term thereof in accordance with paragraph 3 entitled"Term; Extension," NOW, THEREFORE, it is agreed by CITY and PSM as follows: 1. Paragraph 3 of the Original Agreement is hereby amended to read as follows: 3. TERM: EXTENSION This Agreement shall apply to the EVENT for the years 2011 through 2015, and shall remain in effect until February 15, 2015 (or later in the year 2015 if the parties mutually agree to hold the EVENT on a subsequent date in the year 2015). This Agreement may be terminated by either party with eleven (11) months prior written notice to the other party, or within eleven (11) months of the next EVENT date if both parties mutually agree on conditions of termination. However, CITY may also terminate this Agreement upon thirty(30) days prior written notice to PSM if: a) PSM fails to comply with the conditions of approval for the EVENT, or b) PSM fails to pay assigned fees in advance of the event, as set forth each year by the Specific Events Committee and approved by the Community Services Director, or c) after review by the Specific Events Committee and subsequent evaluation by the City Council, PSM'S performance is determined to be below the standards consistent with the management of a first class professional sporting event. Factors to be considered in any such determination may include, but are not limited to: compliance with the conditions of approval for the EVENT as set forth by the Specific Events Committee; timely payment of fees; compliance with all health and safety requirements; and successful response to community access issues. 09-2156/37257 1 2. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers ff,1, -A 00 PACIFIC SHORELINE MARATHON, a CITY OF HUNTINGTON BEACH, a limited liability corporation municipal corporation of the State of California By: print name Mayor ITS: (circle one)Chainn CPre:sidenice President AND gy. btity Clerk print name INITIATED AND APPROVED: ITS: (circle one Secretary hief Financial Officer/Asst. Secretary-Treasurer e r of Co unity Se es REVIEWE APPROVED: APPROVED AS TO FORM: +inistrator Cit Attorney" 09-2156/37257 2 RCA ROUTING SHEET INITIATING DEPARTMENT: Community Services SUBJECT: Pacific Shoreline Marathon Contract Extension COUNCIL MEETING DATE: November 16, 2009 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached (Signed in full by the City Attorney) Not Applicable ❑ Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached ❑ Not Applicable Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable EXPLANATION FOR MISSING ATTACHMENTS /22 7 REVIEWED RETOOED FOI.. A DED Administrative Staff Deputy City Administrator (Initial) ( ) ( ) City Administrator (Initial) ) ( ) City Clerk ( ) LANATION FOR RETURN`OF ITEM: C ( 42 C Q L RCA Author: Osline x5312 o e City ®f Huntington Beach 2000 Main Street • Huntington Beach, CA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK November 18, 2009 Pacific Shoreline Marathon, LLC Attn: Don Gerould 3300 Via Lido Newport Beach, CA 92663 Dear Mr. Gerould: Enclosed for your records is a copy of Amendment No. 1 to the Agreement between the City of Huntington Beach and Pacific Shoreline Marathon, LLC to conduct the Surf City USA Marathon (formerly known as the Pacific Shoreline Marathon.) Sincerely, Z70'Flynn, CMC City Clerk JF:pe Enclosure G:fo11owup:agrmt1tr Sister Cities: Anjo, Japan • Waitakere, New Zealand (Telephone:714-536-5227) Council/Agency Meeting Held: Deferred/Continued to: XAppr ved ❑ dit' nally Apprr ❑ Denied Ci lerk' Sign t e Council Meeting Date: June 4, 2007 Department ID Number: CS07-015 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAY R AND CITY COUNCIL MEMBERS SUBMITTED BY: PENE OPE C4L BRETH-GRAFT, D A, CITY ADMINISTRATOR PREPARED BY: JIM B. ENGLE, COMMUNITY SERVICES DIRECT SUBJECT: APPROVE AGREEMENT WITH PACIFIC SHORELI MARATHON, LLC TO CONDUCT RUNNING EVENT IN HUNTINGTON BEACH Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: In 2004, the Pacific Shoreline Marathon was acquired by a new company, Pacific Shoreline Marathon, LLC, which successfully operated the event in 2005, 2006 and 2007. There is a need to generate a contract with this company to continue to operate the event in Huntington Beach and to allow the company to plan for the future. Funding Source: N/A Recommended Action: Approve and authorize the Mayor and City Clerk to execute Agreement between the City of Huntington Beach and Pacific Shoreline Marathon, LLC to Provide the Pacific Shoreline Marathon in Huntington Beach. Alternative Action(s): Do not approve contract with Pacific Shoreline Marathon, LLC. Analysis: Huntington Beach has hosted the Pacific Shoreline Marathon since 1996 on Super Bowl Sunday, which occurs in late January or early February. The event includes a marathon, half marathon, 5K, and children's run. In 1997, the Pacific Shoreline-Marathon attracted 2,416 participants. In 1999, Council approved a ten-year agreement with Race Pace Promotions to operate the marathon in Huntington Beach; however, Race Pace Promotions requested termination of the agreement in 2004, which was approved by Council in December of that year. The 2005, 2006 and 2007 events were managed and operated by a newly formed corporation, Pacific Shoreline Marathon, LLC with only a specific event permit and no contract. The new owners were able to build upon the past success of the former operator and infuse new energy and ideas into its operation. As a result, the 2005 event grew to 7,656 participants. By 2007, the event had over 15,000 registered participants. This REQUEST FOR ACTION MEETING DATE: June 4, 2007 DEPARTMENT ID NUMBER:CS07-015 latest event brought runners from 47 states and 19 foreign countries. There is also a large Huntington Beach participant base making the event both a destination for tourists and the local community. The new operators need a contract with the city to allow them to plan for future years and solicit sponsors who need assurance that the event would continue to be operated in Huntington Beach for the foreseeable future. The proposed contract (Attachment 1) is intended to provide that assurance. The contract is for three-years, 2008 through 2010, and provides for an extension upon mutual agreement for an additional three years (2011-2013). The contract provides some exclusivity, dictating that the Pacific Shoreline be the only Olympic-distance marathon and half-marathon to be conducted on public property in the City of Huntington Beach for three (3) months prior and three (3) months following the event. As with all specific events, the promoter pays for all direct city costs. Conditions for the overall event are reviewed through the Specific Events Committee. While there is some impact on city residents, extensive notification is done to minimize inconvenience. All streets are reopened as soon as public safety permits. The event organizers have worked on an agreement with the Conference & Visitors Bureau and beginning in 2008, the words "Surf City USA" will be incorporated in the event title. The success of the Pacific Shoreline Marathon is important in bringing revenue to the city during the off-season. The event also donates to local charities with over $150,000 given to non-profits since the inception of the event. For 2007, local beneficiaries included Kiwanis Club, Junior Guards, Search and Rescue Explorers, International Surfing Museum, Mesa View Middle School, HB High School Basketball and Football Boosters, Edison High School Girls Cross-Country Team, RACES, and Longboard Crew. These organizations provide volunteers for the event. An international charity was added in 2006, the Free Wheelchair Mission, an organization providing free wheelchairs in underdeveloped countries around the world. For the 2006 and 2007 marathon events, this charity raised a total of$650,000. Strategic Plan Goal: Approving the agreement with Pacific Shoreline Marathon, LLC will meet Strategic Plan Goal Land Use and Economic Development L-4 — Create an environ- ment that promotes tourism to increase revenues to support community services and transform the city's economy into a destination economy. The marathon will attract local residents and tourists to the beach, pier, and Main Street businesses, restaurants, etc. Attachment(s): City Clerk's Page Number No. Description 1. Agreement with Pacific Shoreline Marathon, LLC 2. Marathon Fact Sheet C:\Documents and Settings\bazantd\Local Settings\Temporary Internet Files\OLKB2\07-014 Approve agreement with Pacific Shoreline Marathon.doc -2- 5/23/2007 2:42 PM ATTACHMENT 1 AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND PACIFIC SHORELINE MARATHON TO PROVIDE THE PACIFIC SHORELINE MARATHON IN HUNTINGTON BEACH THIS AGREEMENT("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and Pacific Shoreline Marathon, a limited liability corporation,hereinafter referred to as "PSM." WHEREAS, CITY wishes to be the host site for the Pacific Shoreline Marathon in Huntington Beach (hereinafter referred to as the "EVENT"); and PSM wishes to conduct the EVENT in Huntington Beach, California; and A marathon has been conducted on Superbowl Sunday since 1995 in Huntington Beach; and CITY has received financial and other benefits from the EVENT and desires to continue to conduct the EVENT for the years 2008, 2009, and 2010; and PSM desires to continue conducting the EVENT in the City of Huntington Beach on Superbowl Sunday for the years 2008, 2009, and 2010; and The parties desire to set forth the general terms and conditions which will be applicable to the EVENT, NOW, THEREFORE, CITY and PSM do hereby agree as follows: 1. AUTHORITY PSM shall conduct the EVENT on Superbowl Sunday of each year(or on a date mutually agreed to by the parties) for the years 2008, 2009, and 2010 using Huntington Beach as the site under the general terms and conditions contained in this Agreement. PSM shall request permission to use the words "Surf City USA" in the title of the EVENT. If permission is granted, PSM shall include the words "Surf City USA" in the EVENT title. This Agreement is subject to Huntington Beach Municipal Code, Chapter 13.54 Specific Events, which requires among other things, for PSM to apply for and process an annual permit for the EVENT. Application to the Specific Events Committee may be made at any time throughout the year, but not later than ninety (90) days prior to each year's EVENT. Specific guidelines for each EVENT will be developed each year, depending upon alterations to the EVENT. 2. PERMIT FEES AND DIRECT COSTS a) All costs and conditions that apply to each year's EVENT will be determined at the time of review through the Specific Events Committee. These may include, but are not limited to, specific event permit fees, police costs, fire department permits and costs, 06-294/7195 1 public works costs for road closure and traffic control plans, business license,parking and parking lot use and beach maintenance costs. PSM is responsible for paying all associated CITY costs and fees 30 days in advance of the EVENT. b) The CITY will make every effort to notify PSM of any construction, road maintenance, or any activity planned on or adjacent to the race course that may inhibit or otherwise disrupt the use of the course during the EVENT within three (3) months of the event. 3. TERM; EXTENSION This Agreement shall apply to the EVENT for the years 2008, 2009, 2010, and shall remain in effect until February 15, 2010 (or later in the year 2010 if the parties mutually agree to hold the EVENT on a subsequent date in the year 2010). This Agreement may be extended, upon mutual agreement of the parties, for an additional three year period, to include the years 2011, 2012 and 2013. This Agreement may be terminated by either party with eleven (11) months prior written notice to the other party, or within eleven(11) months of the next EVENT date if both parties mutually agree on conditions of termination. However, CITY may also terminate this Agreement upon thirty (30) days prior written notice to PSM if: a) PSM fails to comply with the conditions of approval for the EVENT, or b) PSM fails to pay assigned fees in advance of the event, as set forth each year by the Specific Events Committee and approved by the Community Services Director, or c) after review by the Specific Events Committee and subsequent evaluation by the City Council, PSM'S performance is determined to be below the standards consistent with the management of a first class professional sporting event. Factors to be considered in any such determination may include, but are not limited to: compliance with the conditions of approval for the EVENT as set forth by the Specific Events Committee; timely payment of fees; compliance with all health and safety requirements; and successful response to community access issues. 4. EXCLUSIVITY For the term of this Agreement, the sole, exclusive, and only recognized Olympic- distance marathon and half-marathon to be conducted on public property in CITY three (3) months prior and three (3) months following the EVENT shall be the Pacific Shoreline Marathon. 5. PROPRIETARY INTEREST IN MARATHON NAME In the event this Agreement is terminated for any reason and at the conclusion of the term of this Agreement, the name "Pacific Shoreline Marathon" shall be the sole property of PSM. 06-294/7195 2 6. HOLD HARMLESS PSM shall protect, defend, indemnify and save and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses,judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with PSM's performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by PSM, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. 7. WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY INSURANCE Pursuant to California Labor Code Section 1861, PSM acknowledges awareness of Section 3700 et seq. of said Code, which requires every employer to be insured against liability for workers' compensation; PSM covenants that it will comply with such provisions prior to commencing performance of the work hereunder. Unless PSM files with CITY an approved, signed Declaration of Non-Employer Status, PSM shall obtain and furnish to City workers' compensation and employer's liability insurance in an amount of not less than the State statutory limits. PSM shall require all subcontractors to provide such workers' compensation and employer's liability insurance for all of the subcontractors' employees. PSM shall furnish to CITY a certificate of waiver of subrogation under the terms of the workers' compensation and employer's liability insurance and PSM shall similarly require all subcontractors to waive subrogation. 8. INSURANCE In addition to the workers' compensation and employer's liability insurance and PSM's covenant to defend, hold harmless and indemnify CITY, PSM shall obtain and furnish to CITY, a policy of general public liability insurance, including motor vehicle coverage covering the EVENT. This policy shall indemnify PSM, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out or in connection with the EVENT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000)per occurrence. If coverage is provided under a form which includes a designated general aggregate limit,the aggregate limit must be no less than One Million Dollars ($1,000,000) for this EVENT. This policy shall name CITY, its officers, elected or appointed officials, employees, agents, and volunteers as 06-294/7195 3 Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the EVENT shall be deemed excess coverage and that PSM's insurance shall be primary. Under no circumstances shall said above-mentioned insurance contain a self- insured retention, or a"deductible" or any other similar form of limitation on the required coverage. 9. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, PSM shall furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; the certificates shall: a) provide the name and policy number of each carrier and policy; b) state that the policy is currently in force; and c) promise to provide that such policies will not be canceled or modified without thirty (30) days' prior written notice of CITY. PSM shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverages shall not derogate from the PSM's defense, hold harmless and indemnification obligations as set forth under this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of all the policies of insurance. PSM shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. PSM shall provide a separate copy of the additional insured endorsement to each of PSM's insurance policies, naming CITY, its officers, elected and appointed officials, employees, agents and volunteers as Additional Insureds,to the City Attorney for approval prior to any payment hereunder. 10. CITY EMPLOYEES AND OFFICIALS PSM shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 11. ASSIGNING AS BREACH PSM shall not encumber, assign or otherwise transfer this Agreement, or any right or interest in this Agreement, without the prior express written consent of CITY. A consent by CITY to one assignment or transfer to another person or entity shall not be deemed to be a 06-294/7195 4 consent to any subsequent assignment or transfer to another person or entity. Any encumbrance, assignment or transfer, without the prior written consent of CITY, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of.CITY, terminate this Agreement. 12. NOTICES Any notice or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to PSM or to CITY's Director of Community Services as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO CITY: TO PSM: City of Huntington Beach Don Gerould ATTN: Director of Community Services Pacific Shoreline Marathon 2000 Main Street 3300 Via Lido Huntington Beach, CA 92648 Newport Beach, CA 92663 13. LEGAL SERVICES SUBCONTRACTING PROHIBITED PSM and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. PSM understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by PSM. 14. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 15. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached 06-294/7195 5 exhibits, if any, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on O j� 200-1 . PACIFIC SHORELINE MARATHON, a CITY OF HUNTINGTON BEACH, a limited liability corporation municipal corporation of the State of �.� California By: print name gayor ITS: (circle one)Chairm /Presiders 'ce President AND 9p") J29w) By: Vty Clerk 6,140&9 Ann=�, A Tis nnLYtak print name APPROVED AS TO FORM: ITS: (circle one) Secretary/ hief Financial Of er/As Secretary-Treasurer ity At rney p REVIEWED AND APPROVED: INITIATED AND APPROVED: C IJL,-� L�� 6 �Zw Ci Administrator Dir to of ommumty SerAas 06-294/7195 6 t, y s iiy INSURANCE AND INDEMNIFICATION WAIVER Hun' I Beach® MODIFICATION REQUEV E 9 V E D 1. Requested by: Naida Osline MAY 15 2007 2. Date: May 10, 2007 City of Huntington Beach City Attorney's Office 3. Name of contractor/permittee: Pacific Shoreline Marathon, LLC 4. Description of work to be performed: Conduct a running event and expo 5. Value and length of contract: 3 years 6. Waiver/modification request: Waive attachment of auto liabillity insurance at this time 7. Reason for request and why it should be granted: The event is issued an annual event permit. Auto insurance will be obtained prior to the 2008 event. 8. Identify the risks to the City in approving this waiver/modification: No risk as this insurance will be in place by the time the event is conducted. ep ment Head gnat Date: APPROVALS Approvals must be obtained in the order listed on this form. Two approvals are required for a request to be granted. Approval from the City Administrator's Office is only required if Risk Managemenja<d City Attorney's Office disagree. I f1sk Management Approved ❑ Denied l��J /� 6 -7 Signature Date 2. r.ity Attorney's Office -el�Qpproved ❑ Denie Mf Signature Date 3. City Administrator's Office ❑ Approved ❑ Denied Signature Date If approved, the completed waiver/modification request is to be submitted to the City Attorney's Office along with the contract for approval. Once the contract has been approved, this form is to be filed with the Risk Management Division of Administrative Services Document10 5/10/2007 1:55:00 PM CERTIFICATE OF INSURANCE 12IM2006 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION American Specialty Insurance&Risk Services,Inc. HOIp�THIS��CATE�NO THE ��OR 142 North Main Street ALTER THE COVERAGE AFFORDED BY THE POLICY BELOW. Roanoke Indiana 46783 INSURED INSURERS AFFORDING COVERAGE USA Track&Field,Inc. INS.A. Philadelphia Indemnity Insurance Company 1 RCA Dome,Suite 140 INS.B: Indianapolis,1N 46225-0120 INS.C: PACIFIC SHORELINE MARATHON,LLC 3300 VIA LIDO NEWPORT BEACH,CA 92663 CERT NUMBER:1000476881 EVENT CODE:07-33-007 COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED,NOT WITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITION OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INS POLICY POLICY POLICY LTR TYPE POLICY NUMBER EFFECTIVE EXPaRATION LIMITS General Aggregate 1,000,000 GL PHPK195710 11/01/2006 11/01/2007 Products-Completed Operations Aggregate 1,000,000 000,000 A 12:01 a.m. 12:01 a.m. Personal and AdvertisingInjury1,000 000 Each Occurrence Tama Tamage to Premises Rented to You One Premisesl 100,000 Medical Expense Limit(Any One Person Excluded General Agaregate 9,000,000 UMB PHUB072306 11/01/2006 11/01/2007 Products-Completed Operations Aggregate 9,000,000 A 12:01 a.m. 12:01 am. Each Occurrence 9,000,000 DESCRIPTION OF OPERATIONSILOCATIONSIVEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS The Certificateholder is only an Additional insured with respect to liability caused by the negligent ads or omissions of the Named Insured,but only with respect to the PACIFIC SHORELINE MARATHON from February 01,2007 through February 04,2007. Coverage applies to USA Track&Field sanctioned events and registered practices,including any directly related activities,such as event set-up and tear-down.participant check-in and award ceremonies. The Umbrella policy contains a Self Insured Retention MErDIA. 1�S TO FORM RN14 CERTIFICATE HOLDER CANCELLATION CITY OF HUNTINGTON BEACH SHOULD ANY OF THE ABOVE DESCRIBED MAIN STREET POLICIES BE_CANCELED BEFORE THE HUNTINGTON BEACH,CA 92648 EXPIRATION DATE THEREOF,THE ISSUING COMPANY WILL MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER AUTHORIZED REPRESENTATIVE Q American Specialty Insurance&Risk Services,Inc.also conducts business as A.S.I.R.S.I.insurance Agency in the state of Calfforttia. POLICY NUMBER: PHPK195710 COMMERCIAL GENERAL LIABILITY CG 20 26 07 04 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Persons Or Organization(s) City of Huntington Beach, Its Agents, Officers and Employees Information required to complete this Schedule, if not shown above,will be shown in the Declarations. Section II — Who Is An Insured is amended to in- clude as an additional insured the person(s) or or- ganizations) shown in the Schedule, but only with respect to liability for "bodily injury", "property dam- age" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: A. In the performance of your ongoing operations; or B. In connection with your premises owned by or rented to you. CG 20 26 07 04 ©ISO Properties, Inc., 2004 Page 1 of 1 0 May 10 2007 13: 52 CF Properties, LLC 949-673-7326 p- 1 BEACH CITY OF HUMTING"-RON 2000 Main Street, Huntington Beach, CA 92648 Declaration of Nora-Employer Status jIn order to comply with the City Council Resolution No. 6277, you are required to provide proof of Workers' Compensation insurance. If you have no employees, this form roust be signed and returned to: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 i 1 certify that in the performance of the activity or work for which this permit Is Issued, I shall not employ any person in any manner so as to become subject to California Workers' Compensation insurance requirements. I authorize the City of Huntington Beach to Immediately and retroactively revoke the license or permit issued under this declaration if I hire any employee(s) or become subject to the provision of the laws requiring Workers' Compensation ' Insurance. I Applicant/Company Name: Pacific Shoreline Marathon, LLC Address: 3300 Via Lido, Newport Beach, CA 92663 ! Applicant's 5lgnature: -�— I Title: General Manager/CFO i { Location Signed: 3300 Via Lido, Newport Beach, CA 92663 Date Signed: 5/02/07 I } i Telephone Number: (949)278-3685 i I . .i,,..i�.^`/:�f�s'\.^.%�.".%'�:,`.:^.r.,, ,.. ^.:�.✓�rf: ✓-1'1`✓�.,�;...l.r✓'v'.. .% ..i.. . w ,. ti1',. ..`-_i.,, .. .\^:...i�.I'v'.. r ,l�.. %.�`r i • • ATTACHMENT #2 MpRATHpN �a a INCOME $70—$1ooK 20%, Surf City USA® Marathon o100—$2o0 21% F@brllary 3rdy 2008 over$2ooK 7% . OCCUPATION Event BusinessOwners/CEO's 6% v Surf Themed Beachside Marathon,Half Marathon,5K and Kids Run Management 11% 0 Two Day Active Lifestyle Expo Educators 13 0 Finish Line Beer Garden,BBQ,Refreshments and Live Surf Rock Music Finance/Legal 13% 0 More than a decade of history and tradition in Surf City LISAO,Huntington Beach,CA Auine 0 15,000 Runners and Walkers 0,3o,000 Expo Visitors AGE rs 30,000 Spectators 0 1,500 Volunteers 18&under 3% Media 19-24 7% 0 20 Million Estimated Marketing Impressions 25-34 32% 0 Southern California Local Edition Television Programming 34-44 30% 0 Marketing—print,television,web site,email promotions,retail and event distribution 45-54 19% 0 Public Relations 55&over, 9 tables 10 Award Winning Half Marathon event(Competitor&LA Sports and Fitness Magazines' GENDER "Best of"Awards) Women 56% o Marathon Experience ranked 5th best in the country by Marathon&Beyond survey Men 44% • $65o,000 raised to date by Run for Mobility participants for the Free Wheelchair Mission I USA®DemograP hic Partici atfon Chart. 5ur�City rest of Rest of So.Cal: �rarrgC# bufitj► US/world ..v x I p t T l , } 1 n � f � d". ems.. " � • , r RCA ROUTING SHEET INITIATING DEPARTMENT: Community Services SUBJECT: Pacific Shoreline Marathon Contract COUNCIL MEETING DATE: June 4, 2007 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Attached Contract/Agreement (w/exhibits if applicable) Not Applicable ❑ (Signed in full by the City Attorney) Attached ❑ Subleases, Third Party Agreements, etc. Not Applicable (Approved as to form by City Attorney) Certificates of Insurance (Approved b the CityAttome Attached y y) Not A plicable ❑ Attached ❑ Fiscal Impact Statement (Unbudget, over $5,000) Not Applicable Attached ❑ Bonds (If applicable) Not Applicable Attached Staff Report (If applicable) Not Applicable Commission, Board or Committee Report applicable)If a Attached ❑ p ( pp ) Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ pp Not A plicable EXPLANAMN FOR WSSONO QTTACG;fGu�GW`' REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator Initial ( ( ) City Administrator (Initial) ( ) ( ) City Clerk ) EXPLANATION FOR RETURN OF ITEM: (Below Space For City Clerk's Use Only) RCA Author: FCITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK June 5, 2007 Don Gerould Pacific Shoreline Marathon 3300 Via Lido Newport Beach, CA 92663 Dear Mr. Gerould: Enclosed is a fully executed copy of the Agreement between the City of Huntington Beach and Pacific Shoreline Marathon to provide the Pacific Shoreline Marathon in Huntington Beach on Super Bowl Sunday's. Sincerely, 00wi o3l- jjr-) Joan L. Flynn City Clerk JF:pe Enclosure: Agreement G:followup:agrmtltr 1Telephone:714-536-5227)