HomeMy WebLinkAboutSPECTRUM SPORTS MANAGEMENT LLC - 2003-03-03 1
CITY OF HUNTINGTON BEACH RL5 No.
REQUEST FOR LEGAL SERVICES Assn To
Gail Hutton, City Attorney Date
Date: Request made by: Telephone: Department:
03/31/03 Connie Brockway x5404 City Clerk's Office
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INSTRUCTIONS: File request in the City Attorney's Office.. Outline reasons for this request and state
facts necessary for City Attorney.to respond. Please attach 'all pertinent information and exhibits.'
TYPE OF LEGAL SERVICES REQUESTED:
❑ Ordinance ® Opinion ❑ Stop Notice
❑ Resolution ❑ Lease ❑ Bond
❑ Meeting ❑ Contract/Agreement ❑ Deed
❑ Court Appearance ❑ insurance ❑ Other:
Is Request for Preparation of Contract form attached? ❑ Yes ® No 1
Are exhibits attached? ❑ Yes ® No
Unless otherwise specified herein, I
If not for Council action, consent to the disclosure of the
If for City Council action, desired completion date: information contained In this RLS to all
mvbers of the City Council i
Agenda Deadline !/ i
Council Meeting 04/11/03 Signature of epartmen ead
COMMENTS
The City Clerk's Office annually and as required throughout the year notifies designated individuals of their responsibility to
file Statements of Economic Interests--Form 700 as required by Resolution 98-19, adopted by the City Council on July 6,
1998.
The penalty for non-compliance by a member of a designated board, commission and committee is that such member vacate
the office as required by Ordinance No. 3391, approved by the City Council on July 20, 1998. The fine for a late filer is $10
per day up to a maximum of$100.
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The City Clerk's Office has notified a member of the Conference and Visitors Bureau of non-compliance. This particular
Board of Directors is not listed under Resolution 98-19 but it was determined by your office, based on advice from the Fair
Political Practices Commission, that board members of the Conference and Visitors Bureau are subject to the Political Reform i
Act and must fife the disclosure statement.
The City Council resolution was not updated to require this Board to file. Please advise as.t.o whether the Board member
must file. Please also advise relative to the fine. .
Routing: ❑ GCH 1 ❑ PDA 1 ❑ LB ❑ SL ❑ JF 1 ❑ ADL ❑ SF ❑ JM ❑
This Request for Legal Services has been assigned to attorney ,
extension His/her secretary is , extension
Notes: File Name: Date Completed:
WP No.:
•J CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICATION
TO: Jennifer McGrath, City Attorney
FROM: Connie Brockway, City Clerk
RE: Statements of Economic Interests — Form 700t
DATE: March 31, 2003
The City Clerk's Office annually and as required throughout the year notifies designated
individuals of their responsibility to file Statements of Economic Interests — Form 700 as
required by Resolution 98-19, adopted by the City Council on July 6, 1998.
The penalty for non-compliance by a member of a designated board, commission and
committee is that such member vacate the office as required by Ordinance No. 3391,
approved by the City Council on July 20, 1998. The fine for a late filer is $10 per day up
to a maximum of$100.
--The-C4 Clerk's`Office has notified a'member of the Conference.and Visitors Bureau of
non-compliance. This particular Board-of Directors is not listed under Resolution 98-19
but it was determined by your office, based on advice from the Fair Political Practices
Commission, that board members of the Conference and visitors bureau are subject to
the Political Reform Act and must file the disclosure statement.
The City Council resolution was not updated to require this Board to file. Please advise
as to whether the Board member must-file. Please also advise relative to the fine.
CB:st
cc: Mayor & City Councilmembers
City Administrator
g:/Cbmem0s12003!P0rm700
Timon, Sue
From: Brockway, Connie
Sent: Sunday, March 23, 2003 10:55 AM
To: Timon, Sue
Cc: Ehring, Liz
Subject: FW: spectrum management agreement
Please locate the Spectrum Management Agreement just recently approved and place this item in it. Thanks
-----Original Message-----
From: Brockway,Connie
Sent: Sunday, March 23, 2003 10:54 AM
To: McGrath,Jennifer
Cc: Silver, Ray; Workman,William P.
Subject: RE: spectrum management agreement
Jennifer- It is necessary the the RCA contain the direction to obtain a 700. Also will you or the City Administrator be taking
steps to find the right officer to file the Form 700 with the City Clerk's Office. If you will review the state code on this we
can get it squared away. Also I believe it it in our current resolution. There needs to be direction to the city clerk's office as
to whom to require the form. This comes through the city administrator or your office. Connie
-----Original Message-----
From: McGrath,Jennifer
Sent: Monday, March 17, 2003 1:45 PM
To: Brockway,Connie
Cc: D'Alessandro, Paul
Subject: RE:spectrum management agreement
That is an excellent suggestion and we will be looking at this issue with the revised Designated Employees resolution.
Thank you.
Jennifer
-----Original Message-----
From: Brockway, Connie
Sent: Tuesday, March 11, 2003 6:42 PM
To: McGrath,Jennifer
Cc: Engle,Jim; Hagan, Ron; Ehring, Liz
Subject:spectrum management agreement
Jennifer, I notice that Form 700 is required of Spectrum upon getting the contract and leaving the contract.
I would appreciate your establishing a procedure whereby the City Clerk is informed by separate memo of the
address the name etc; of where to mail the Form 700 as I usually would not of noticed this, except that I was
looking for the expiration date of the agreement that I couldn't find, as I need it to inactivate the agreement down
the road.
I would appreciate it if you would consider making the RCA Recommended Action: To Direct the consultant to file
the Form 700 upon taking the agreement and leaving the agreement. And then have a procedure with each dept
to advise when a consultant job or agreement is over because I never know.
This is very important to get established. Otherwise if we don't have a procedure it may as well not be part of the
agreement. I do not know if I have missed any more of these. Connie
1
Ross, Rebecca
From: Brockway, Connie
Sent: Monday, March 17, 2003 6:08 PM
To: Ross, Rebecca
Subject: FW: spectrum management agreement
Will you locate the Spectrum agreement and put this email in it. Connie
-----Original Message-----
From: Brockway,Connie
Sent: Monday, March 17, 2003 6:07 PM
To: McGrath,Jennifer
Cc: D'Alessandro, Paul; CITY CLERK
Subject: RE: spectrum management agreement
Thank you. I believe it is in the current resolution. It is state law that the City Administrator handles this function. You may
want to check the law on this, it may have changed.
-----Original Message-----
From: McGrath,Jennifer
Sent: Monday, March 17, 2003 1:45 PM
To: Brockway,Connie
Cc: D'Alessandro,Paul
Subject: RE: spectrum management agreement
That is an excellent suggestion and we will be looking at this issue with the revised Designated Employees resolution.
Thank you.
Jennifer
-----Original Message-----
From: Brockway,Connie
Sent: Tuesday, March 11,2003 6:42 PM
To: McGrath,Jennifer
Cc: Engle,Jim; Hagan, Ron; Ehring, Liz
Subject: spectrum management agreement
Jennifer, I notice that Form 700 is required of Spectrum upon getting the contract and leaving the contract.
I would appreciate your establishing a procedure whereby the City Clerk is informed by separate memo of the
address the name etc; of where to mail the Form 700 as I usually would not of noticed this, except that I was
looking for the expiration date of the agreement that I couldn't find, as I need it to inactivate the agreement down
the road.
I would appreciate it if you would consider making the RCA Recommended Action: To Direct the consultant to file
the Form 700 upon taking the agreement and leaving the agreement. And then have a procedure with each dept
to advise when a consultant job or agreement is over because I never know.
This is very important to get established. Otherwise if we don't have a procedure it may as well not be part of the
agreement. I do not know if I have missed any more of these. Connie
1
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Ross, Rebecca
From: Brockway, Connie
Sent: Tuesday, March 18, 2003 6:29 PM
To: Ross, Rebecca
Subject: RE: spectrum management agreement
Thank you Rebecca. Could you remind me where it is. Connie
-----Original Message-----
From: Ross, Rebecca
Sent: Tuesday, March 18, 2003 12:52 PM
To: Brockway,Connie
Subject: RE: spectrum management agreement
Sure.
RR
-----Original Message-----
From: Brockway,Connie
Sent: Monday,March 17, 2003 6:08 PM
To: Ross, Rebecca
Subject: FW: spectrum management agreement
Will you locate the Spectrum agreement and put this email in it. Connie
-----Original Message-----
From: Brockway,Connie
Sent: Monday, March 17, 2003 6:07 PM
To: McGrath,Jennifer
Cc: D'Alessandro, Paul; CITY CLERK
Subject: RE: spectrum management agreement
Thank you. I believe it is in the current resolution. It is state law that the City Administrator handles this function.
You may want to check the law on this, it may have changed.
-----Original Message-----
From: McGrath,Jennifer
Sent: Monday, March 17, 2003 1:45 PM
To: Brockway,Connie
Cc: D'Alessandro, Paul
Subject: RE: spectrum management agreement
That is an excellent suggestion and we will be looking at this issue with the revised Designated Employees
resolution. Thank you.
Jennifer
-----Original Message-----
From; Brockway,Connie
Sent: Tuesday, March 11, 2003 6:42 PM
To: McGrath,Jennifer
Cc: Engle,Jim; Hagan, Ron; Ehring, Liz
Subject: spectrum management agreement
Jennifer, I notice that Form 700 is required of Spectrum upon getting the contract and leaving the contract.
I would appreciate your establishing a procedure whereby the City Clerk is informed by separate memo of
the address the name etc; of where to mail the Form 700 as I usually would not of noticed this, except that
I was looking for the expiration date of the agreement that I couldn't find, as I need it to inactivate the
agreement down the road.
I would appreciate it if you would consider making the RCA Recommended Action: To Direct the
consultant to file the Form 700 upon taking the agreement and leaving the agreement. And then have a
1
i
procedure with eachot to advise when a consultant job or agree*nt is over because I never know.
This is very important to get established. Otherwise if we don't have a procedure it may as well not be part
of the agreement. I do not know if I have missed any more of these. Connie
2
ay-sN,r..-
CouncillAgency Meeting Held-
Deferred/Continued to:
pproved ❑ Conditionally Approved ❑ Denied City Clerk's Signat
Council Meeting Date: March 3, 2003 Department ID Number: CS03-007
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS �
SUBMITTED BY: RAY SILVER, City AdministratorQAJ
PREPARED BY: JIM B. ENGLE, Director, Community Se ti
RON HAGAN, Special Projects Manage
SUBJECT: APPROVE SERVICES CONTRACT WIT SPECTRUM SPORTS
MANAGEMENT, LLC. FOR SPONSORSHIP DEVELOPMENT
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments)
Statement of Issue: Staff has prepared a services contract with Spectrum Sports
Management, LLC to act as the city's agent in the solicitation, negotiation, and development
of sponsorships for Community Services programs and facilities.
Funding Source: NA.
Recommended Action: Motion to:
Approve the Services Contract between the City of Huntington Beach and Spectrum Sports
Management, LLC for Sponsorship Development, and authorize the Mayor and City Clerk to
execute same.
Alternative Action(s): Do not approve the agreement with Spectrum Sports Management,
LLC, and do not solicit sponsors for Community Services programs, events, or facilities.
Analysis: The city has had a professional services contract for several years with Spectrum
Sports Management, LLC (SSM) for soliciting and developing sponsors for the city's Fourth
of July Parade. Staff would like to add a contract that would include SSM's solicitation of
sponsorships for other Community Services activities such as the Pier Plaza Presents
Concert Series; annual Fishing Derby; and possibly sponsorship for Community Services
facilities, sports fields, tot lots, clubhouses, etc.
SSM is a specialty company that has developed numerous sponsorship relationships with
various retail businesses throughout southern California and the nation. These businesses
use SSM for "grassroots" marketing programs, i.e., sponsorship of local events, activities,
and facilities. Development of sponsorship revenue is one of the assignments of Ron Hagan,
Special Projects Manager. SSM will work under Mr. Hagan's supervision to solicit, negotiate,
and develop various proposals with local, regional, and national retailers for sponsorship of
i
REQUEST FOR COUNCIL ACTIOR
MEETING DATE: March 3, 2003 DEPARTMENT ID NUMBER: CS03-007
activities and facilities that will be presented to Council for approval. SSM will work on a
commission-only basis, i.e., if they bring a sponsorship package that Council approves,
SSM will be paid a 20 percent commission on the gross revenue from the sponsorship
package. If the city provides SSM-with the contact or lead, SSM's commission would be
15 percent for negotiating and developing the proposed sponsorship package.
An agent is necessary because each retail business sponsorship package needs to be
uniquely designed to fit a company's grassroots .marketing goals. Some companies
exclusively sponsor sporting events, for example; others exclusively sponsor cultural
events. Some companies want sign recognition at public facilities, while others want
packages where they are the official provider of in-kind products and services. By using
an agent, Mr. Hagan will be able to develop sponsorship packages for City Council
consideration from companies all over the United States that are interested in branding or
name recognition in Huntington Beach.
The 4`h of July Executive Board formally requested bids and selected Spectrum Sports 3 ,0 3
Management as its agent. The city's Central Services Manager has confirmed that this
process meets the city's procedural requirements. The city can now expand SSM's efforts #
with this second contract to provide the same professional services for Community �� y
Services.
The city incurs no cost for this contract until such time as the city receives revenue from a
sponsorship package. Consequently, staff is recommending Council approval of the
services contract with Spectrum Sports Management, LLC for sponsorship development.
Environmental Status: NA
Attachmentfsi:
City Clerk's
Page Number No. Descriptioii
I Services Contract with S ectrum S orts Management
RCA Author; RH:cr
G:\RCAk2003'%03-007 Approve Services Contract with Spectrum Sports Mgmt.doc .2.
2/24/2003 11:08 AM
ATTACHMENT # 1
Brockway, Connie
To: McGrath, Jennifer
Cc: Engle, Jim; Hagan, Ron; Ehring, Liz
Subject: spectrum management agreement
Jennifer, I notice that Form 700 is required of Spectrum upon getting the contract and leaving the contract.
I would appreciate your establishing a procedure whereby the City Clerk is informed by separate memo of the address the
name etc; of where to mail the Form 700 as I usually would not of noticed this, except that I was looking for the expiration
date of the agreement that I couldn't find, as I need it to inactivate the agreement down the road.
I would appreciate it if you would consider making the RCA Recommended Action: To Direct the consultant to file the
Form 700 upon taking the agreement and leaving the agreement. And then have a procedure with each dept to advise
when a consultant job or agreement is over because I never know.
This is very important to get established. Otherwise if we don't have a procedure it may as well not be part of the
agreement. I do not know if I have missed any more of these. Connie
i
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OFFICE OF THE CITY CLERK
CITY OF HUNTINGTON BEACH
-P.,O. Box 190/2000 Main Stre6t
Huntington Beach, CA 92649
(714) 536-5227
(714) 374-1557 FAX
LETTER OF TRAINSMITTAL OF ITEM APPROVED BY THE CITY COUNCILI
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINNGTON BEACH
DATE:. 03 - la -z3 _
TO: S � yL xn p _J �►TTENTION: M ., D, .,
an: f
DEPARTMENT: t 1'�S, d' �-
Street r
C 1 REGARDING: y'Ca,S �r, r .
City,state,Zip
See Attached Action Agenda Item Date of Approval 0�- 63-u3
Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item.
Remarks:
Connie Brockway
City Clerk
Attachments: Action Agenda Page Agreement Bonds Insurance
RCA Deed Other
CC: ; od n a �,mn rn wr;�Y� _�
Na go Department R A A Insurance Bands
Narne Departm nt CA Agreemect Insurance, Bonds
C�,rt A� �l��a L sk- -M ,..I-
Na►ne Department �— RCA Agreemera Insurance Bonds
Name Department RCA Agreemeet Insurance Other
Name Department RCA Agrecn7crA Insurance Other
g:lfollowupAettersteoverltrRevA.doc
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SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
SPECTRUM SPORTS MANAGEMENT, LLC,
FOR SPONSORSHIP DEVELOPMENT
Table of Contents
Part I—Hourly-Based Projects
1 Scope of Hourly-Based Projects..............................................................................2
2 Compensation for Hourly-Based Projects ...............................................................2
3 . Extra Work...............................................................................................................2
4 Method of Payment..................................................................................................3
5 Termination of Hourly-Based Projects....................................................................4
Part II -- Commission-Based Projects
6 Negotiations and Procurement of Corporate Partnership Agreements....................5
7 Commissions............................................................................................................5
8 Representations to Sponsors....................................................................................6
9 Termination of Commission-Based Projects...........................................................6
Part III -- General Terms
10 Agent's Duties........... ..............................................................................................8
11 Designated Contacts............................................................................................9
12 Time of Performance ...............................................................................................9
13 Disposition of Plans. Estimates and Other Documents .....9
14 Hold Harmless .........................................................................................................10
15 Workers' Compensation and Employers' Liability Insurance..................................10
16 General Liability Insurance.............................................. 11
17 Certificates of Insurance................................................................................. ......12
18 Independent Contractor............................................................................................12
19 Assignment and Subcontracting Prohibited.............................................................13
20 Copyrights/Patents...................................................................................................13
21 City Employees and Officials..................................................................................13
22 Notices.....................................................................................................................13
23 Section Headings .....................................................................................................14
24 Interpretation of this Agreement..............................................................................14
25 Duplicate Original....................................................................................................15
26 Immigration..............................................................................................................15
27 Legal Services Subcontracting Prohibited...............................................................15
28 Attorney's Fees.........................................................................................................16
29 Entirety.....................................................................................................................16
i •
SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
SPECTRUM SPORTS MANAGEMENT, LLC,
. FOR SPONSORSHIP DEVELOPMENT
2 H�
THIS Agreement is made and entered into this 3 day of90,74ak-1
2003, by and between the City of Huntington Beach, a municipal corporation of the State of
California, hereinafter referred to as "CITY," and Spectrum Sports Management, LLC, a
California Limited Liability Company, hereinafter referred to as "AGENT."
WHEREAS, CITY desires to engage the services of an agent for sponsorship
development services; and
WHEREAS, AGENT has the ability to procure sponsor agreements with corporations,
organizations, and businesses consistent with CITY sponsorship and corporate partnership
programs for the benefit of CITY projects; and
Pursuant to documentation on file in the office of the City Clerk, the provisions of the
Huntington Beach Municipal Code, Chapter 3.02, relating to procurement of service contracts
have been complied with; and
AGENT has been selected to perform said services,
NOW, THEREFORE, it is agreed by CITY and AGENT as follows:
Depending on the individual project, CITY may hire AGENT on an hourly- or
commission-based method. Part I of this Agreement covers hourly-based projects. Part II of this
Agreement covers commission-based projects. AGENT's services under this Agreement shall
sometimes hereinafter be referred to as the"SERVICES." Part III of this Agreement covers
general terms.
Page 1 of 17
02agree/Spectrum Sports Management/rjw/jn/12/2/02
PART I—HOURLY-BASED PROJECTS
1. SCOPE OF HOURLY-BASED PROJECTS
Within CITY's Department of Community Services is the position of"Special
Projects Manager." The goal, scope and AGENT's total fee for each hourly-based project will
be negotiated by CITY's Special Projects Manager and AGENT on a project-by-project basis.
AGENT shall send CITY's Special Projects Manager a proposal for a particular hourly-based
project, which CITY's Special Projects Manager may accept or reject. If accepted and in
advance of any work by AGENT on any specific project, CITY's Special Projects Manager and
AGENT shall draft a work plan for each project, setting forth its goals, scope, finished product,
timeline and time for completion, and the AGENT's hourly rate and total fee to undertake and
complete the project. CITY's Special Projects Manager and AGENT shall execute this work
plan for each project before AGENT undertakes any work on the project.
2. COMPENSATION
In consideration of the performance of the services described in Section 1, CITY
agrees to pay AGENT on an hourly basis, which hourly rate is to be negotiated by CITY's
Special Projects Manager and AGENT on a project-by-project basis.
3. EXTRA WORK
In the event CITY requires additional services not included in the executed
project work plan, or changes in the scope of services described in the project work plan,
AGENT will undertake such work only after receiving written authorization from CITY's
Special Projects Manager. Additional compensation for such extra work shall be allowed only if
the prior written approval of CITY's Special Projects Manager is obtained.
Page 2 of 17
02agree/Spectrum Sports Management/rjw/jn/12/2/2002
4. METHOD OF PAYMENT
A. AGENT shall be entitled to monthly progress payments for an individual
hourly-based project.
B. Delivery of work product: A copy of every memorandum, letter, report,
calculation and other documentation prepared by AGENT shall be submitted to CITY to
demonstrate progress toward completion of the project. In the event CITY rejects or has
comments on any such product, CITY shall identify specific requirements for satisfactory
completion. Any such product which has not been formally accepted or rejected by'CITY shall
be deemed rejected.
C. AGENT shall submit to CITY an invoice for each progress payment due.
Such invoice shall:
I) Reference this Agreement and the particular project;
2) Describe the services performed;
3) Show the total amount of the payment due; and
4) For all payments include terms of particular project and an
estimate of the percentage of work completed.
Upon submission of any such invoice, if CITY is satisfied that AGENT is making
satisfactory progress toward completion of the project in accordance with this Agreement, CITY
shall promptly approve the invoice, in which event payment shall be made within thirty(30) days
of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY
does not approve an invoice, CITY shall notify AGENT in writing of the reasons for non-
approval within seven(7) calendar days of receipt of the invoice, and the schedule of
performance set forth for that project shall be suspended until AGENT and CITY's Special
Page 3 of 17
02agree/Spectrum Sports Management/rjw/jn/12/2/02
Projects Manager agree that past performance by AGENT is in, or has been brought into
compliance, or until this Agreement is terminated as provided herein.
D. Any billings for extra work or additional services authorized by CITY's
Special Projects Manager shall be invoiced separately to CITY. Such invoice shall contain all of
the information required above, and in addition shall list the hours expended and hourly rate
charged for such time. Such invoices shall be approved by CITY if the work performed is in
accordance with the extra work or additional services requested, and if CITY is satisfied that the
statement of hours worked and costs incurred is accurate. Such approval shall not be
unreasonably withheld. Any dispute between the parties concerning payment of such an invoice
shall be treated as separate and apart from the ongoing performance of the remainder of this
Agreement.
5. 'TERMINATION OF HOURLY-BASED PROJECTS
All work required hereunder shall be performed in a good and workmanlike
manner. CITY may terminate this Agreement and/or any specific hourly-based project at any
time with or without cause, and whether or not the hourly-based project is fully complete. Any
termination of this Agreement and/or a specific project by CITY shall be made in writing, notice
of which shall be delivered to AGENT as provided herein. In the event of termination, all
finished and unfinished documents, exhibits, reports, and data shall, at the option of CITY,
become its property and shall be delivered to CITY by AGENT, and AGENT shall refund to
CITY all unearned fees paid to AGENT. In addition, AGENT shall not incur, and CITY will not
be responsible for, any of AGENT's hourly charges, and travel and other out-of-pocket expenses
incurred after AGENT's receipt of notice of termination from CITY.
Page 4 of 17
02agree/Spectrum Sports Management/rjw/jn/]2/2/2002
PART II—COMMISSION-BASED PROJECTS
6. NEGOTIATIONS AND PROCUREMENT OF SPONSORSHIP AGREEMENTS
Subject to the prior approval and direction of CITY's Special Projects Manager,
AGENT shall research, analyze, contract and negotiate sponsor agreements with corporations,
organizations and businesses consistent with CITY's goals and objectives of corporate
partnership programs. This includes but is not limited to researching potential sponsors for
specific programs and projects, setting up meetings with potential sponsors, defining sponsor
benefit packages consistent with sponsor and CITY goals, preparing solicitation materials,
negotiating sponsor agreements/contracts and presenting sponsorship agreements to CITY for
final approval.
7. COMMISSIONS
A. AGENT shall receive a 20% commission on total gross cash revenues
generated by sponsorship agreements procured by AGENT and entered
into and approved by CITY. If the City provides the lead, the commission
paid to Agent shall be 15% subject to conditions in this Section 7A. CITY
shall pay AGENT this compensation within sixty(60) days following
CITY's receipt of the cash revenues from the sponsorship. The packaging
and pricing of sponsorship agreements may be changed by CITY in its
sole discretion from time to time, and AGENT shall not receive any
increased commission as a result of such change unless AGENT directly
negotiated the change. If CITY's revenues from a sponsorship agreement
are reduced, then the commission due to AGENT shall be reduced
accordingly. Commissions shall only be paid from total gross cash
Page 5 of 17
02agree/Spectrum Sports Managemenu-"rjw,'jn/12.'2/'2002
revenues and on a project-by-project cash accounting basis. CITY shall
have no obligation to pay commissions on benefits received pursuant to a
corporate partnership agreement where the benefits are of a non-cash
nature, including but not limited to provision of property or services to
CITY.
B. CITY shall not be required to reimburse AGENT's reasonable travel and
other out-of-pocket expenses. These are expenses AGENT shall bear
without cost to CITY.
8. REPRESENTATIONS TO SPONSORS
AGENT shall not make any statements or representations to prospective sponsors
that could mislead or confuse the sponsors, and shall indemnify, hold harmless and defend CITY
from and against any and all claims, damages, liabilities, losses, costs, charges and expenses
(including reasonable attorney's fees) resulting therefrom, which may be brought in connection
with or arising from any such statements or representations.
9. TERMINATION OF COMMISSION-BASED PROJECTS
A. At any time, CITY may terminate this Agreement and/or any commission-
based project with or without cause upon written notice to AGENT. In the
event of termination, all finished and unfinished documents, exhibits,
reports, and data shall, at the option of CITY, become its property and
shall be delivered to CITY by AGENT, and AGENT shall refund to CITY
all unearned fees paid to AGENT.
B. In the event AGENT or any employee or agent of AGENT performing
services on behalf of CITY for the benefit of CITY breaches this
Page 6 of 17
02agree;'Spectrum Sports ManagemenVrjw/jn/12/2'2002
Agreement, CITY shall have the right to terminate this Agreement and/or
a specific commission-based project immediately by giving notice to
AGENT. CITY shall have no obligation to pay AGENT commissions in
connection with any matter for which AGENT was terminated for cause,
and CITY shall be entitled to a reimbursement of all compensation and
expenses paid to AGENT. Termination of this Agreement by CITY shall
not limit any other right or remedy which CITY may have under this
Agreement, at law or in equity.
C. In the case CITY terminates this Agreement and/or a specific commission-
based project without cause, AGENT shall be paid the commission
provided for in Section 7A if all of the following are satisfied: (1) the
sponsorship agreement is executed within one hundred eighty(180)
calendar days after the termination of this Agreement and/or the
commission-based project; (2) prior to the final termination of this
Agreement and/or commission-based project, AGENT has had
negotiations on behalf of CITY regarding the subject matter of the
sponsorship agreement with the same entity who entered into the
sponsorship agreement with CITY; and (3) provided that CITY had
received notice in writing from AGENT of the names of the prospective
sponsors with whom AGENT has had negotiations on behalf of CITY
before or upon termination of this Agreement and/or commission-based
project. However, whether terminated by CITY with or without cause,
AGENT shall not incur, and CITY will not be responsible for, any of
Page 7 of 17
02agree/Spectrum Sports Management/rjw/jn/12/2/2002
AGENT's travel and other out-of-pocket expenses incurred after
AGENT's receipt of the notice of termination from CITY.
PART III—GENERAL TERMS
10. AGENT'S DUTIES
AGENT agrees that it shall:
A. Exercise its best efforts, using its skill, experience and knowledge to the
best of its ability in providing the services required under this Agreement.
B. Inform CITY of any fact or occurrence that affects CITY's interests, and
disclose to CITY any personal, business, or financial interest(including
but not limited to any ownership interest in any business, or representation
of, or employment by any person or business providing any product or
service that competes with any product or service provided by CITY) that
may actually or potentially impair or otherwise affect AGENT's ability to
represent CITY's interests to the maximum extent contemplated by this
Agreement.
C. Not serve, represent or work for any of CITY's competitors with respect
to any of the business entities with whom CITY is seeking an agreement,
without prior disclosure to, and specific prior written approval of CITY's
Special Projects Manager.
D. Pursuant to the California Political Reform Act, AGENT shall be
considered to be a "consultant" subject to the terms of the Act, within the
meaning of the various regulations the Fair Political Practices Commission
has promulgated concerning consultants. AGENT shall file a Statement of
Page 8 of 17
02agree/Spectrum Sports Management/rjw/jn/12/2/2002
Economic Interest with the City Clerk upon assuming the position of
AGENT, and subsequently on an annual basis, and upon termination of
this Agreement. Further, AGENT shall comply with California
Government Code Section 1090.
E. AGENT shall not receive any compensation or financial interest from any
business entity AGENT solicits (or presents to CITY) to enter into an
agreement with CITY.
F. UNDER NO CIRCUMSTANCES SHALL CITY BE LIABLE TO
AGENT OR ANY THIRD PARTY CLAIMING BY OR THROUGH
AGENT FOR CONSEQUENTIAL DAMAGES OR LOST PROFITS.
This Subsection shall survive the termination of this Agreement.
11. DESIGNATED CONTACTS
CITY shall assign a staff coordinator to work directly with AGENT in the
performance of this Agreement. AGENT hereby designates Michael D. Bone, who shall
represent it and be its sole contact and agent in all consultations with CITY during the
performance of this Agreement.
12. TIME OF PERFORMANCE
Time is of the essence of this Agreement. AGENT's services for each project are
to commence as soon as practicable after CITY's Special Projects Manager and AGENT execute
a work plan for that project.
13. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS
AGENT agrees that all materials prepared hereunder, including all calculations,
reports, memoranda, letters and other documents, shall be turned over to CITY upon termination
Page 9 of 17
02agree/Spectrum Sports Management/rjw!jn/12/2/2002
• i
of this Agreement or upon completion of the project, whichever shall occur first. In the event
this Agreement is terminated, said materials may be used by CITY in the completion of the
project or as it otherwise sees fit. Title to said materials shall pass to CITY upon payment of fees
or commissions, if any, determined to be earned by AGENT to the point of termination or
completion of the project, whichever is applicable.
14. HOLD HARMLESS
AGENT shall protect, defend, indemnify and save hold harmless CITY, its
officers, officials, employees, and agents from and against any and all liability, loss, damage,
expenses, costs (including without limitation, costs and fees of litigation of every nature) arising
out of or in connection with AGENT's performance of this Agreement or its failure to comply with
any of its obligations contained in this Agreement by AGENT, its officers, agents or employees
except such loss or damage which was caused by the sole negligence or willful misconduct of
CITY. CITY shall be reimbursed by AGENT for all costs and attorney's fees incurred by CITY in
enforcing this obligation.
15. WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE
Pursuant to California Labor Code Section 1861, AGENT acknowledges
awareness of Section 3700 et seq. of said Code, which requires every employer to be insured
against liability for workers' compensation; AGENT covenants that it will comply with such
provisions prior to commencing performance of the work hereunder; and shall indemnify, defend
and hold harmless CITY from and against all claims, demands, payments, suit, actions,
proceedings and judgments of every nature and description, including attorney's fees and costs
presented, brought or recovered against CITY, for or on account of any liability under any of
Page 10 of 17
02agree/Spectrum Sports Management/rjw/jn/12/2/2002
said acts which may be incurred by reason of any work to be performed by AGENT under this
Agreement.
AGENT shall maintain workers' compensation and employers' liability insurance
in amounts not less than the State statutory limits.
AGENT shall require all subcontractors to provide such workers' compensation
and employers' liability insurance for all of the subcontractors' employees. AGENT shall
furnish to CITY a certificate of waiver of subrogation under the terms of the workers'
compensation and employer's liability insurance and AGENT shall similarly require all
subcontractors to waive subrogation.
16. GENERAL LIABILITY INSURANCE
i In addition to the workers' compensation and employers' liability insurance and
AGENT's covenant to indemnify CITY, AGENT shall obtain and furnish to CITY, a policy of
general public liability insurance, including motor vehicle coverage, covering the SERVICES.
The policy shall indemnify AGENT, its officers, agents and employees, while acting within the
scope of their duties, against any and all claims arising out of or in connection with the
SERVICES, 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 ($1,000,000.00) per occurrence. if coverage
is provided under a form that includes a designated general aggregate limit, the aggregate limit
must be no less than One Million Dollars ($1,000,000.00) for the SERVICES. The policy shall
name CITY, its agents, its officers, employees and volunteers as Additional Insureds, and shall
specifically provide that any other insurance coverage which may be applicable to the
SERVICES shall be deemed excess coverage and that AGENT's insurance shall be primary.
Page 11 of 17
02agree/Spectrum Sports Management rjw/jn/12/2/2002
•
Under no circumstances shall the above-mentioned insurance contain a self-
insured retention, or a"deductible"or any other similar form of limitation on the required
coverage.
17. CERTIFICATES OF INSURANCE
Prior to commencing performance of the work hereunder, AGENT 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 that such policies shall not be suspended, voided or canceled by
either party, reduced in coverage or in limits except after thirty (30) days'
prior written notice; however, ten (10) days' prior written notice in the
event of cancellation for nonpayment of premium.
AGENT 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 provisions for indemnification of CITY by AGENT under the Agreement. CITY or its
representative shall at all times have the right to demand the original or a copy of all said policies
of insurance. AGENT shall pay, in a prompt and timely manner, the premiums on all insurance
hereinabove required.
18. INDEPENDENT CONTRACTOR
AGENT agrees that this is not a contract for employment. AGENT is, and shall
be, acting at all times in the performance of this Agreement as an independent contractor herein
Page 12 of 17
02agree/Spectrum Sports Manage me nt/rj w/j n/12/2/2002
•
and not as an employee of CITY. AGENT shall not receive any salary, bonuses or employment
benefits from CITY. CITY makes no representations or warranties about the total amount of
commissions or other remuneration that AGENT may earn under this Agreement. AGENT shall
secure at its expense, and be responsible for any and all payment of all taxes, social security,
state disability insurance compensation, unemployment compensation and other payroll
deductions for AGENT and its officers, agents and employees and all business licenses, if any, in
connection with the services to be performed hereunder.
19. ASSIGNMENT AND SUBCONTRACTING PROHIBITED
This Agreement is a personal service contract and the supervisory work hereunder
shall not be delegated or subcontracted by AGENT to any other person or entity without the
express written consent of CITY.
20. COPYRIGHTS/PATENTS
CITY shall own all rights to any patent or copyright on any work, item or material
produced as a result of this Agreement.
21. CITY EMPLOYEES AND OFFICIALS
AGENT 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.
22. NOTICES
Any notice or special instructions required to be given in writing under this
Agreement shall be given either by personal delivery to AGENT or to CITY's Special Projects
Page 13 of 17
02agree/Spectrum Sports Man agement/rjw/j n/12/2/2002
Manager 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 AGENT:
Ron Hagan Michael D. Bone
Special Projects Manager Spectrum Sports Management, LLC
Department of Community Services 2058 N. Mill, #454
City of Huntington Beach Claremont, CA 91711
2000 Main Street
Huntington Beach, CA 92648
23. SECTION HEADINGS
The titles, captions, and section and paragraph and subject headings, and
descriptive phrases at the beginning of the various sections in this Agreement are merely
descriptive and are included solely for convenience of reference only and are not representative
of matters included or excluded from such provisions, and do not interpret, define, limit or
describe, or construe the intent of the parties or affect the construction or interpretation of any
provision of this Agreement.
24, INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be construed as a
whole, according to its fair meaning, and not strictly for or against any of the parties. If any
provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be
unenforceable,void, illegal or invalid, such holding shall not invalidate or affect the remaining
covenants and provisions of this Agreement. No covenant or provision shall be deemed
dependent upon any other unless so expressly provided here. As used in this Agreement, the
masculine or neuter gender and singular or plural number shall be deemed to include the other
whenever the context so indicates or requires. Nothing contained herein shall be construed so as
Page 14 of 17
02agreeiSpectrum Sports Managementlrjw/jn/12/2/2002
to require the commission of any act contrary to law, and wherever there is any conflict between
any provision contained herein and any present or future statute, law, ordinance or regulation
contrary to which the parties have no right to contract, then the latter shall prevail, and the
provision of this Agreement which is hereby affected shall be curtailed and limited only to the
extent necessary to bring it within the requirements of the law.
25. DUPLICATE ORIGINAL
The original of this Agreement and one or more copies hereto have been prepared
and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of
the date of its execution and delivery, be deemed an original. Each of the parties hereto shall
retain an originally signed copy hereof. Each duplicate original shall be deemed an original
instrument as against any party who has signed it.
26. IMMIGRATION
AGENT shall be responsible for full compliance with the immigration and
naturalization laws of the United States and shall, in particular, comply with the provisions of the
United States Code regarding employment verification.
27. LEGAL SERVICES SUBCONTRACTING PROHIBITED
AGENT and CITY agree that CITY is not Iiable for payment of any subcontractor
work involving legal services, and that such legal services are expressly outside the scope of
services contemplated hereunder. AGENT 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 AGENT.
Page 15 of 17
02agree/Spectrum Sports Management/rjw/jn/12/2/2002
28. ATTORNEY'S FEES
In the event suit is brought by either party to enforce the terms and/or provisions
of this Agreement or to secure the performance hereof, each party shall bear its own attorneys
fees.
29. ENTIRETY
The Agreement contains the entire agreement between the parties respecting the
subject matter of this Agreement and supercedes all prior understanding and agreements whether
oral or in writing between the parties respecting the subject matter hereof. This Agreement may
only be amended or supplemented by written agreement of CITY and AGENT, unless in writing
duly executed by both parties.
['SIGNATURES ON NEXT PAGE]
Page 16 of 17
02agree/Spectrum Sports Man agement/rjw/in/I212/2002
i •
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized offices the day, month and year first above written.
SPECTRUM SPORTS MANAGEMENT, CITY OF HUNTINGTON BEACH, a
LLC, a California Limited Liability Company municipal corporation of the State of
3:;
ia
Bv: -4�� &11---�—
print name
ITS: (circle one)Chairmaq esiden ice Preside t Mayor
el 44"'A ATTEST:
By:
print name City Clerk
ITS: (circle e) SecretaryiChief Financial Officer/Asst.
Secretary—Treas er
REVIEWED AND PPROVED: APPROVED AS TO FORM:
p
SJ�
City lUdministrator ly, a't City Attorney ` , ,\o
WITIATE AND APPROVED:
p ial Projects Manager
Page 17 of 17
02agree/Spectrum Sports ManagementirjwJni12i212002
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,CORD&'171i71 OACORD CO ION 5996
Feb- 12 03 04: 03p PbInsurance Brokers, lnc 62W71664 p.3 1
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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY,
ADDITIONAL INSURED-OWNERS, LESSEES OR CONTRACTORS
(TENDER OF ANY LOSS TO OTHER AVAILABLE INSURANCE,AND EXCLUSION OF EMPLOYEE INJURY)
This endorsement modules Insurance provided under the following:
COMMERCIAL GENERAL L.FABILITY COVERAGE FORM
This endorsement changes the policy'affective on the Inception date of the policy unless another date is indicated
below.
Endorsement Effective
Attached to and forming a past of Policy Standard Time Endorsement Number
Number nim dd yy 12:01 AM.
177F000287 Ol/ 0/200 02
(The above information Js required only when this endorsement is Issued aubseauera to preparation of the policy.)
AuIhorized Rep vsentative Date
SCHEDULE
Name of Person or Organlzatk n:
THE CITY OF HUNTINGTON BEACH AT:'N: RISK MANAGEMENT
2000 MAIN STREET
HUNTINGTON BEACH CA, 92648
This endorsement is provided in consideration of an additional prerrdum.
Premium: 1 o o.o o Exposure: Only the person or organization named Classification Code: 49M
Who Is An Insured (Section II) is amended to Include tenant of any Insured,that arises out of and In
as an Insured the person or organiizadpn shown in the the course of:
SCHEDULE, but only with respect to liability arlsing out
of your ongoing operations performed for that insured, (1) Employment by any insured; or
Including acts or omissions of the Additional Insured in
connection with the general supervision of such (2) Performing duties mated to the conduct of
operations. any insured's business;or
Except as provided above, this insurance does not b. The spouse, clv'id, parent. brother or sister of
apply to any 'bodily Injury' 'property damage" or that 'employee' as a consequence of
'personal and advertising Injury' arising out of or Paragraph a.above.
resulting from the neglect or negligence d the y exclusion
Additional Insured described In this endorsement applies:
If other valid and collectible Insurance Is available to the a. Whether an Insured may be Ike as an
person or organization shown in the SCHEDULE for a employer or In any other capacity, and
loss we cover under Coverage A or 8 of the Coverage
Form to which this endorsement attaches, titer+ the b. To arty obligation to share damages with or
person or organization shown must also,as a conditlott repay someone else who must pay damages
for coverage hereunder, tender any loss to each such because of the Injury.
other Insurance. These provisions and exclusions apply In addition to
This insurance does not apply to any"bodily Injury'to: those contained In the Coverage Form. All of the
provisions and exclusions of the policy that apply to
a. An'employee'of any insured,or a person hired LIABILITY COVERAGES also apply to this
to do work for or on behalf of any insured or a endorsement.
BG-G,970 0101
Ci t- � Vc"L LF (?l- kW i
su. N INSURANCE AND INDEMNIFICATION WAIVER
MODIFICATION REQUEST
1. Requested.by: Ron Ha an
2. Date: February 4,,2003
3. Name of contractor/permittee: Spectrum Sports
4. Description of work to be performed: Act as city agent to obtain corporate sponsorships
5. Value and length of contract: 20%g commission/open ended contract
6. Waiver/modification request: Professional Liability Insurance
7. Reason for request and why it should be granted: City will assume no liability by waiver
8. Identify the risks to the City in approving this waiver/modification: None
-3
D artment Head i nature Date:
APPROVALS.:::; : ..
Approvals must be obtained iri.the order listed'on this forrrl; Two approvals are required
.;,-for a request to be granted. Approval from.'the City Administrator's Office:is only required if.
Risk Management and the City Attorney's Office disagree.
1. Risk Management /
❑Approved ❑ Denied 1
Signature T Date
2. City Attorney's Office
G.Approved ❑ ��1Q ZDenied _
Signature Date
3. City Administrator's Office
.�pproved ❑ Denied
Signature Date
If approved, the completed waiverlmodification 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
nnrjimantl 91419(103 ln-40 AM
• �l *City of Huntington Beach F
� �-� Cf..�14s VaLw- PL 6- fa
HUNnNGTON BEACH 2O00 Main Street California 92648
DECLAfZATiON of NON-EMPLOYER STATUS
in order to comply with City Council Resolution No. 6277, you are required to provide proof of
Workers' Compensation insurance. If you have no employees, this form must 6e signed and returned to:
City of Huntington E)cach
Risk Management Division
2000 Main Street
Huntington gcaA, CA 92648
I 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 sub'cct to California Workers' Compensation insurance
requirements.
authorize the City of Huntington 5each to immediately and retroactively revoke the license or Permit
issued under this declaration if f hire any cmployee(s) or become sub ect to the provisions of the laws
requiring Workers' Compensation Insurance.
Applicant/Company Name: :5OC.L' rfi- YYI S tj a—,4Q221� �^
Applicant's jignature, ]]ate: 1 �['
Title: -� em a SQ 42--r— —_
Location Signed: _ LOF
—� ---
Telephone Numbcr: ____ / b 7 3 _J ^___ •���
G:1RiskMamACert-Ins1WC-Wvr.Doc (Rev. 116I20031
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RCA ROUTING S HEFT
INITIATING DEPARTMENT: COMMUNITY SERVICES
SUBJECT: APPROVE SERVICES CONTRACT WITH SPECTRUM
SPORTS MANAGEMENT FOR SPONSORSHIP
DEVELOPMENT
COUNCIL MEETING DATE: March 3, 2003
s r RCA'ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution.(w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the gLty Attome Attached
Subleases, Third Party Agreements, etc.
(Approved as to form bZ City Attomey) Not Applicable
Certificates of Insurance (Approved by the City Attome ) Attached
Financial Impact Statement Unbud et, over $5,000 Not Applicable
Bonds If applicable) Not Applicable
Staff Report if applicable) Not Applicable
Commission, Board or Committee Report If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION;FOR:MISSING
ATTACHMENTS,- :. . . . :: .
`=REVIEWED RETURNED: `FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator initial e
City Clerk
EXPLANATION"FOR RETURN"`OF`::ITEM:
Space . •
RCA Author:
MAVERYO Address Labels Laser 5160®