Loading...
HomeMy WebLinkAbout2016-07-12 - AGENDA REPORTS - HYATT REGENCY 2016 AMGEN TOUR (2)7�l Agenda Item: 8 CITY OF SANTA CLARITA Q) AGENDA REPORT CONSENT CALENDAR i, CITY MANAGER APPROVAL: fAI DATE: July 12, 2016 SUBJECT: AUTHORIZATION FOR PAYMENT TO THE HYATT REGENCY VALENCIA FOR HOTEL ROOMS FOR THE 2016 AMGEN TOUR OF CALIFORNIA DEPARTMENT: Community Development PRESENTER: Jason Crawford RECOMMENDED ACTION City Council authorize payment of $53,343.28 to the Hyatt Regency Valencia for hotel rooms for the 2016 Amgen Tour of California. BACKGROUND Since 2007, the City of Santa Clarita (City) has hosted 12 stages of the Amgen Tour of California (race). The benefits received by the City for hosting the race include positive economic impact, national and international media exposure, embracing bicycle -friendly events and practices, and highlighting Santa Clarita as a tourism destination. This year's race crossed California from south to north. The finish line for the stage of the race that ended in Santa Clarita was located on Lyons Avenue, allowing the City to showcase Old Town Newhall to the thousands of visitors who attended the event. There were 1,020 rooms blocked out for May 15 and 16 at various hotels in the City for the 2016 Amgen Tour of California, of which 992 were used. Each of the City's five Tourism Marketing District hotels (Embassy Suites, Holiday Inn Express, Best Western, Courtyard by Marriott, and the Hyatt Regency Valencia [Hyatt]) were filled to capacity to accommodate the race. The Hyatt reserved 290 hotel -room nights for participants and spectators of the race. All rooms reserved were needed to support the race. Per the agreement with AEG, the presenter of the race, the City was obligated to pay a portion of the total hotel room costs. The City entered into a contract with the Hyatt for 290 rooms at an estimated total of $48,350. Taxes and assessments were not included in the original estimate. When included, the total cost for the rooms came to $53,343.28, which will be paid with Tourism Marketing District funds. City Council approval is required for payments in excess of $50,000. Page 1 Packet Pg. 100 The City's total budgeted costs for the 2016 Amgen Tour of California was $150,000. This amount encompasses the City's hotel room obligation, including these rooms booked at the Hyatt as well as other hotels, and other associated costs with the event such as public safety, notification, marketing and operations. Funds for this expenditure were part of the FY 2015-16 budget approved by the City Council. ALTERNATIVE ACTION As determined by the City Council. FISCAL IMPACT Adequate funds are currently appropriated in the Tourism Marketing District account. ATTACHMENTS Contract - Hyatt/Amgen Tour of CA -2016 Page 2 Packet Pg. 101 fts Go (A3ue6eN HeAH of luawAEd to leno.iddd : Zib9 �) 9 HOZ-` :D 3o anol ue6wV/IIeAH - IoealuoO :luauayoeli`d VAIENCIA HYATT REGENCY VALENCIA 24500 TOWN CENTER DRIVE SANTA CLARITA, CA 91355 — USA Telephone (661) 799-1234 Fax: (661) 799-1233 GROUP SALES AGREEMENT Date Prepared: January 20, 2016 Group Contact: MR. JASON CRAWFORD Title: MANAGER OF ECONOMIC DEVELOPMENT AND MARKETING Organization: CITY OF SANTA CLARITA Address: 23920 VALENCIA BLVD STE 300 SANTA CLARITA California 91355-2196 Telephone: (661) 255-4347 E-mail: Jcrawford@santa-clarita com Function Name: AMGEN TOUR OF CALIFORNIA Official Event Dates: 15 -May -2016 - 17 -May -2016 Hyatt Sales Manager: COURTNEY HENDERSON Title: GROUP SALES MANAGER Telephone: (661) 799-1234 E-mail: courtney.henderson@hyatt.com CITY OF SANTA CLARITA ("Group") and SWVP Valencia LLC; dba Hyatt Regency Valencia ("Hotel") agree as follows: The Hotel agrees to hold the rooms and space listed in this Agreement on a tentative basis until Wednesday, January 27, 2016. If this Agreement is not fully executed by Group and Hotel by that date, the Hotel will release the space. If, before that date, the Hotel receives an offer from another group to book the s.0me space, the Hotel will notify you and you will have forty-eight (48) hours from the Hotel's notification to return this executed agreement. SLEEPING ROOM BLOCK Room Type .. 15 -May 16 -May KING 47 (rates: $159.00) 19 (rates: $159.00) DOUBLE/DOUBLE 118 (rates: $169.00) 106 -(rates: $169.00) Total Room Nights: 290 Room rates are quoted exclusive of applicable state and local taxes (which are currently 12% and $0.36 California State Tourism Tax ) or applicable service, or hotel specific fees in effect at the Hotel at the time of the meeting. Page I - -- (A3ue6eN HeAH of luawAEd to leno.iddd : Zti9 �) 9 HOZ-` :D 3o anol ue6wv/lleAH - l3ealuoO :luauay3ell`d q co RESERVATION METHOD Reservations may also be made by rooming list that will be submitted to the hotel on or before the Cut -Off Date (Friday, April 22, 2016). Reservations may be made, modified or canceled by the meeting planner or designate, who may enter reservations as they are received using the on-line reservation form accessible at http://manage.passkey.com (Hotel will supply a user name and password if the planner does not already have one). Reservations must be made on or before the Cut - Off Date. NON-COMMISSIONABLE These rates are confirmed on a net non-commissionable basis. GUEST ROOM MINIMUM Hotel is relying on, and Group agrees to provide, a minimum of 290 sleeping room nights (the "Sleeping Room Minimum"). Should the Group fall below this amount, Group will be responsible for the difference between the Sleeping Room Minimum and actualized sleeping room nights. Attrition: The parties agree that the Group and the Hotel will share in the loss of revenues suffered by the Hotel in the event of the Group's failure to utilize all of the rooms and services agreed to herein. The Group therefore agrees to pay a percentage of lost revenues. "Lost Revenues" shall mean: Lost Revenues = Total Anticipated Revenues — (actual Room Revenues + actual F&B Revenues) The Group will be responsible for paying the amount indicated by the chart below: Percentage of rooms/services not utilized Group Pays 20% or less -0- 21 to 30% 40% of Lost Revenues 31 to 60% 60% of Lost Revenues over 61% 100% of Lost Revenues The Hotel and Group intend to liquidate the damages in the event that the Group fails to meet the Sleeping Room_Minimum ,. set forth in this section. Therefore, Group and Hotel agree (a) that the above formula is a reasonable estimate of the Hotel's damage in the event that such a minimum is not met and (b) that the liquidated damages set forth in this section do not constitute a penalty. COMPLIMENTARY Hotel agrees to provide Group 1 complimentary room nights for every 50 revenue-producing sleeping rooms occupied by the Group on a cumulative basis. Complimentary units may not be used as credit. Complimentary units not used have no value. CUT-OFF DATE The "Cut -Off Date" is Friday, April 22, 2016. Reservation requests received after the Cut -Off Date will be based on availability at the Hotel's prevailing rates and will be credited to the Group's Sleeping Room Block. CREDIT ARRANGEMENTS DIRECT BILL. To update our accounting files, complete the enclosed credit application in full. Direct billing will be established based on updated information. In the event credit is not approved, you can settle your account with a major credit card, full prepayment of all estimated charges must be received within 30 days upon receipt of Hotel's invoice. Failure to remit payment when due will result in cancellation of all arrangements outlined in this Agreement and the Group shall be liable for amounts described in the cancellation option provision of this Agreement. Credit procedures will be provided to Group by the Hotel upon the request for a credit application. Page 2 Go (A3ue6eN HeAH o;;uawAEd Io leno.iddd : Zti9�) 9�OZ-` :D 3o anol ue6wV/IIeAH-;3ea;uoO :;uauay3e;;d GUESTROOM PAYMENT Group shall accept responsibility for room and tax, and all authorized service. These charges will be billed to the Master Account only if credit approval is granted in accordance with the Hotel's credit approval process. Individuals shall be responsible for any charges they incur, which are not authorized to be billed to the Master Account. The Group appoints Jason Crawford to review and approve all charges billed to the Master Account. Individuals shall be responsible for their own incidental charges, and any other charges not authorized by Group to be billed to- the Master Account. All charges incurred are to be paid upon checkout. The Group's Master Account is limited to charges for meeting/function room rental, food and beverage functions and other requested services. CANCELLATION OPTION Group may cancel this contract without cause upon written notice to Hotel at any time prior to the event and upon payment of an amount based on the following scale, plus applicable taxes: 179 days or less from the start of the official event dates $38,680.00 (80% of Rooms) Contract signing to 180 days from the start of the official event dates $33,845.00 (70% of Rooms) Payment due as a result of this cancellation option shall be made by Group to Hotel at the time this Agreement is canceled by written notice. The Hotel and Group intend to liquidate damages in the event that Group utilizes the cancellation option set forth in this section. Therefore, the Hotel and Group agree (a) that the above formula is a reasonable estimate of the Hotel's damage in the event of cancellation and (b) that the liquidated damages set forth in this section do not constitute a penalty. RIGHTS OF TERMINATION FOR CAUSE This Agreement is may be terminated by either party, upon written notice to the other party, without liability to the terminating party, for any of the following causes: a. Any event or circumstance beyond the control of either party, including acts of God, war, acts of terrorism, government regulations, disaster, strikes or civil disorder, to the extent that such event or circumstance makes it illegal or impossible for Hotel to provide, or for groups in general to use, the premises of Hotel. Either party that wishes to terminate this Agreement pursuant to this paragraph must provide written gotice to the other party identifying the event or circumstance that is the basis for such termination as soon as practicable after learning about such event or circumstance. b. In the event that either party shall make a voluntary or involuntary assignment for the benefit of creditors or enter into bankruptcy proceedings prior to the date of the Group's meeting. c. The Hotel shall promptly notify the Group if there is a change in the brand of the Hotel prior to the meeting, in which event Group shall have the right to terminate this Agreement without liability upon written notice to the Hotel. In the event of termination by the Hotel under this section, the Hotel shall refund all deposits and/or prepayments made by the Group within five (5) days of the notice of termination. If this Agreement or a series of agreements between Group and Hotel provides for the Hotel to host more than one event, then Hotel reserves the right to terminate its commitment(s) in this Agreement and/or other agreement(s) if, during any such event, Group fails to pick up seventy percent (70%) of the sleeping rooms committed or the banquet food and beverage expenditures committed, or fails to pay all amounts due and owning in a timely manner. Notice of any such termination by the Hotel shall be made to Group in writing. Page 3 -- (A3ua6ab }}eAH of luawAEd Io leno.iddd : Zti9 �) 9 �OZ-`dD 3o anol ua6wV/;;eAH-;3ea;uoD :luauay3E44V � o c a a� a INDEMNIFICATION AND HOLD HARMLESS Group shall indemnify, defend and hold harmless Hotel, its owner, its management company, their respective affiliates and all of their respective officers, directors, partners, members and employees from and against all demands, suits, judgments, settlements, claims, damages to persons and/or property, fines, liens, losses and other liabilities, including reasonable attorneys' fees (collectively "Claims") arising out of related to the Event. Group does not waive, by reason of this section, any defense that it may have with respect to such Claims. If requested by Hotel, Group shall procure comprehensive general liability insurance with limits of not less than Two Million Dollars ($2,000,000) per occurrence, coving contractual liability and liability for personal or bodily injury or property damage, and naming Hotel as an additional insured, and Group shalt provide Hotel a certificate of insurance evidencing its compliance with this requirement. INSURANCE Each of the parties shall carry policies of insurance that are commercially reasonable for the obligations it undertakes in this Agreement and, upon request by the other party, shall provide evidence of such insurance. For any activity introduced onto the premises by an outside contractor hired by Group, Group will be fully responsible for the actions of such outside contractor. Upon request, Group will provide a certificate of insurance covering the actions of such outside contractor, naming the Hotel Owner and Hyatt Corporation as additional insured's with regard to the activities of such outside contractor. CHANGES; NOTICE Any changes to these terms must be made in writing and signed by both parties to be effective. Any modifications, additions or corrective lining out made on this Agreement will not be binding unless such modifications have been signed or initialed by both parties. Any notice hereunder shall be given to the individuals listed on the first page of this Agreement at the addresses set forth herein. Notice must be given through certified or registered mail, return receipt requested, overnight delivery, with a signature signifying receipt, or by facsimile in order to be effective under this Agreement and shall be deemed delivered upon receipt. DAMAGES Neither party shall be liable to the other for any special, punitive or exemplary damages under this Agreement, even if such party has knowledge of the possibility of such damages. GOVERNING LAW JURISDICTION This Agreement shall be governed by and construed under the laws of the state in which the Hotel is located. Any action between the parties arising out of or related to .this Agreement shall be filed solely in the United States District Court for the district that includes the premises of Hotel (the location of the event subject to this Agreement) or, if subject matter jurisdiction in that court is lacking, in a state court in whose jurisdiction such premises is located. Each of the parties hereby consents to the personal jurisdiction of these courts and venue of any such action in these courts, and hereby waives any objection based on the doctrine offorum non convenlens to any such action being adjudicated by any such court. WAIVER OF JURY TRIAL TO THE EXTENT PERMITTED BY LAW, THE PARTIES HEREBY EXPRESSLY WAIVE THE RIGHT TO A TRIAL BY JURY. ATTORNEYS' FEES In the event any legal action is taken by either party against the other party to enforce one of the terms and conditions of this Agreement, it is agreed that the unsuccessful party to such action shall pay to the prevailing party therein all court costs, reasonable attorneys' fees, and expenses incurred by the prevailing party. In addition, the party against whom collection is sought by non judicial means shall be responsible for all reasonable costs (including reasonable attorneys' fees) incurred by a party that is successful in seeking collection of monies due pursuant to this Agreement. WAIVER If one party agrees to waive its right to enforce any term of this Agreement, that party does not waive its right to enforce such term at any other time or to enforce any or all other terms of this Agreement. Page 4 (A3ue6eN DeAH of luawAEd to leno.iddd : ZIS9 �) 9 �OZ-`dD 3o anol ue6wV/IIeAH-;3ea;uoD :;uauay3E44V co e a a� a BINDING AGREEMENT This Agreement constitutes are all of the terms agreed to by the parties. Any amendment to these terms must be made in writing and signed by both parties to be effective. All prior agreements, verbal or written, are no longer effective once this Agreement is signed by the parties. ENFORCEABILITY If any provision of the Agreement is unenforceable under applicable law, the remaining provisions shall continue in full force and effect. FACSIMILE SIGNATURES This Agreement may be executed in one or more identical counterparts, each of which shall be deemed an original and which collectively shall be deemed one and the same Agreement. Signatures sent by facsimile or e-mail shall have the same binding effect as original signatures. When signed by representatives of both parties, this Agreement, (which includes The Program of Events and the Hotel's Information Sheet) constitutc§ albinding agreement between the Group and the Hotel. CITY OF SANT By: Name: JASON! CRA Title: MANAGER OF ECONOMIC DEVELOPMENT AND MARKETING ^� Date: G t Cl Noble Interstate Management Group -California, as agent for Noble I Valencia Op Co, LLC, dba Hyatt Regency Valencia By: Name: COURTNEY HENDERSON Title: GROUP SALES MANAGER Date: 2/JO.(� Page 5