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HomeMy WebLinkAbout10 - Sponsorship of Newport to Ensenade RaceCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 10 March 10, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Homer Bludau, City Manager 949/644 -3000 or hbludau @city.newport- beach.ca.us SUBJECT: CITY COUNCIL SPONSORSHIP OF NEWPORT TO ENSENADA INTERNATIONAL YACHT RACE FOR A THREE YEAR PERIOD ISSUE: Does the City Council want to become one of the sponsors of the Newport to Ensenada International Yacht Race for a three year period at a cost of $20,000 per year? Authorize the Mayor and the City Clerk to execute the sponsorship agreement that the City Council will be a Race sponsor for the next three years. Background: The 62ntl annual Newport to Ensenada International Yacht Race will take place Friday, April 24th. This is an event which gets nationwide news coverage, as it is well known in the yacht racing industry. The Race also stimulates a lot of local interest and usually includes one or two events with the Mayor of Ensenada and our City Council. Other activities associated with the event include several community yacht clubs hosting feeder races. The Race is aptly given the title of "The Largest International Yacht Race in the World." Along with the Christmas Boat Parade and the Toshiba Senior Golf Tournament, it is one of the three most high profile events held annually in the community. For each of the past three years, the City has provided $15,000 per year for its sponsorship. . This year's Race is expected to feature 400 yachts and over 10,000 participants. A portion of the Race proceeds is donated to Orange County Coastkeeper, a non - profit with the mission of making a difference in the environment and Southern California coastlines. The entity for planning and conducting the Race and the entity the City Council would be entering into an agreement with is the Newport Ocean Sailing Association (NOSA), a 501 Newport to Ensenada International Yacht Race Sponsorship March 10, 2009 Page 2 (c) (3) corporation organized under the laws of California. While Newport Beach would become one of several Race sponsors, the chief underwriting sponsors are Nordstrom and Tommy Bahama. Fiscal Impact: Entering into this contract would bind the City Council to be a $20,000 per year sponsor for three years. City Council account # 0110 -8250 (Special Dept. Expense) has sufficient money to cover this sponsorship for this fiscal year. Environmental Review: The City Council's approval of this Agenda Item does not require environmental review. Public Notice: This agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the Council considers the item). Submitted by: IIN41�VAK� Attachment N o S I P11 A fi.BUA.ia;rm, SPONSORSHIP AGREEMENT THIS AGREEMENT, is made and entered into between City of Newport Beach and NOSA, Inc. d.b.a. NEWPORT OCEAN SAILING ASSOCIATION, a 501(cx3) corporation organized under the laws of California (hereinafter called "NOSA "). WHEREAS, The City of Newport Beach desires to become a Sponsor for the Newport- Ensenada International Yacht Race WHEREAS, NOSA desires that the City of Newport Beach become a Sponsor of the Race; NOW, THEREFORE, in consideration of these premises and of the mutual promises and conditions herein contained, the parties do hereby agree as follows: 1. Term — The term of this Agreement is January 1, 2009 thru December 31, 2011. 2. Renewal Option —The City of Newport Beach shall have the right to renew, with similar terms and conditions as are set forth herein. City of Newport Beach must exercise this option with NOSA on or before June I° of the final year of this Agreement. A new Agreement with then- current sponsorship fees shall be executed on or before August 1 st, or this option shall lapse and be of no force and effect. 3. Sponsorship Fees - The annual sponsorship fee of $20,000 to be paid by the City of Newport Beach to NOSA is due and payable to NOSA no later than January 31 of each year, except for 2009, when the City Council considers this sponsorhip.. The total commitment of the City under this Agreement shall be Sixty Thousand Dollars and No Cents ($60,000.00) 4'. Rights Granted to the City of Newport Beach - In consideration of the sponsorship fees paid by the City of Newport Beach, NOSA grants the following specific rights: • NOSA is working to produce an ESPN 2 TV program developed by Gary Jobson. If NOSA is successful we will work closely with the City and the NBC &VB when scripting the show. It is planned that the show will also be broadcast over the internet. • On "Race Day" the City will have the right to host 4 guests for a pre -race breakfast. After the breakfast the VIPs will be transported to view the start of the race on the VIP Yacht. • The City will receive a four color quarter page ad published in the official race magazine (Camera -ready artwork to be supplied by the City). • A Sailing Luncheon is planned for the Thursday prior to the race and will attract attendees from all over. The City's support will be mentioned throughout the event. This event will be advertised to the public and will highlight well - known speakers and will kick off the annual race. • The City will be promoted by NOSA at all mutually agreed upon pre -race events including the race seminars, the sponsor /owner VIP party (if held), and the annual fiesta held at the Bahia Corinthian Yacht Club. • The City will have the right to use involvement in the race, including the name and logo of the event in any promotion or advertising campaigns conducted by the City, in accordance with the NOSH. • The City's identification will be included in the Notice of Race mailing and Sailing Instructions • The City's identification will appear on the race web page within 10 days of the date of this Agreement, and there will be the ability of viewers to link from the race page to the City's home website. (www.nosa.org) 1�Pa9e The City will receive 2 tickets to the planned pre -Race Yachtsmen's Luncheon. • The City's identification will appear on posters, to be distributed by NOSA to all race entrants. • Additional benefits as mutually agreed upon in writing 5. Advertising and Trade - Neither NOSA nor City of Newport Beach shall publish, nor cause or permit to be published, any advertising which is likely to impair the goodwill of NOSA or City of Newport Beach. City of Newport Beach represents that it is the sole owner of the trademark "City of Newport Beach ", and it has the exclusive right to use such mark for all purposes under this Agreement. NOSA represents that is the sole owner of the trademark or service mark "NOSA ", and it has the exclusive right to use such mark for all purposes under this Agreement. 6. Control of Race and Events - City of Newport Beach and NOSA agree that in the case of each Race and NOSA events held in connection therewith for which City of Newport Beach shall act as a sponsor hereunder, City of Newport Beach shall have no control and no responsibility over any of the following: the selection of the boats or sailors participating in the Race, the. . selection of the racing course, or the conduct or management of the Race. 7. Indemnity — NOSA hereby agrees to indemnify and defend City of Newport Beach (which, together with each of its employees, officers, directors, shareholders, agents, and contractors, are referred to hereinafter as "City of Newport Beach Indemnified Persons ") from and against any and all claims, judgments, costs, and all other liability any City of Newport Beach Indemnified Persons may incur arising out of or in connection with the organization or conduct of each Race as contemplated by this Agreement or the breach of any representation or covenant made by NOSA hereunder. 8. Sign Jicance of Headings -in case of any question with respect to the construction of this Agreement, it is to be construed as though such section headings had been omitted. 9. Entire Agreement - This Agreement shall have no force or effect until signed by NOSA and City of Newport Beach and constitutes the entire agreement between NOSA and City of Newport Beach with respect to the subject matter of this Agreement, and supersedes all prior agreements and undertakings. Any modifications to this Agreement must be in writing and signed by a duly authorized representative of each party. 10. Notices - Any notice required or permitted to be given hereunder shall be hand delivered or sent by prepaid Certified mail, return receipt requested, or reputable overnight air courier, and shall not be deemed to have been given until received by the other party. Until either party hereto advises the other party of a change in how notices shall be addressed, all notices shall be sent to the intended addressee at the address set forth below. If to NOSA: If to City of Newport Beach: NOSA P.O. Box 7485 Newport Beach, California 92658 Homer Bludau City of Newport Beach 3300 Newport Blvd, Newport Beach, CA 92658 11. Governing Law - This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Any legal action related hereto shall be filed in the County of Orange, California. . 2[Page IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in their corporate names by their duly authorized officers as of the day and year first written below. City of Newport Beach Signature Name, Title Date ATTEST Signature Name, Title NOSA Signature Name, Title Date NOSA Signature Name, Title Date Date AP OVED AZ FO Sig ature 1 Name, Title 3/3 Date ..................... 31Page C, f Y "f -)L 4 o rx- NOSA 2009 Event Descriptions The 62 "d Annual Newport to Ensenada International Yacht Race has added new activities outlined below for the benefit of race sailors: 1. On the weekend preceding race da, several yacht clubs will be hosting feeder races. On Sunday, April 19 come early and enjoy this year's complementary Ensenada kick off party hosted by Tommy Bahama's. 2. The starting line has been moved westerly from the traditional start line off the Newport Harbor jetty to a new starting line parallel the Balboa Pier. This gives more room for the boats, smoother waters and better viewing for the spectators. 3. For the first time in Ensenada race history, NOSA will host a VIP Pre - Race Boat Owner's Reception. Nordstrom's and Tommy Bahama will sponsor a spectacular owner's reception and fashion show from 5 -7 p.m. on Thursday April 23, 2009. Every owner attending this complementary party will receive a special gift from Tommy Bahama and Nordstrom. Additionally, 25% off any Tommy Bahama item and any purchase made that evening will be donated to Coast Keepers, this year's NOSA Charity. 4. New this year: Pirate's Lair is offering a complete line of Newport to Ensenada Race gear and apparel. For more information visit NOSA.org 5. Don't want to drive to Ensenada? No problem. NOSA has arranged for special rates on -board Carnival Cruise Line to Ensenada. Watch the race start, then go to Long Beach and board the Carnival Cruise to Ensenada, arriving around 8 a.m. Saturday morning in time to watch most of the boats finish. For more information and reservations, contact SevensSeasTravel.com and ask for Mark Knass or visit NOSA.org for more information. 6. Special Note: anybody who sails the race and would like to come home aboard the Carnival Cruise ship can do so. For more information and reservations, contact SevensSeasTravel.com and ask for Mark Knass or visit NOSA.Org for more information. Don't want to drive to Ensenada? Again no problem. NOSA has arranged for luxury coaches to drive you in comfort to Ensenada and return after Sunday's trophy presentation. Coach transportation from Newport Beach and San Diego will be based on space availability. For coach information visit NOSA.org. 8. At the trophy presentation, Corum Watch will be presenting the owner of the first place PHRF boat on corrected time with a Corum watch valued at $5,000. 9. Don't think about finishing and turning around, come on ashore and be part of history. Saturday evening the City of Ensenada will be hosting the fun filled "Fiesta del Vino " — complete with dancing, great Ensenada . cuisine, Vino and of course Cervesa. 10. If you finish early or your guests want to know what to do in Ensenada, there are several options. For the first time ever there will be '/Z day excursions available to view "La Bufadora" and/or tour Mexico's finest wine region. For more information visit NOSA.org. 11. The Hyatt Regency Newport Beach is the official race hotel and has offered all race participants an amazing rate so that you can enjoy Newport Beach and everything it has to offer for up to a week prior to race day. Come early and really enjoy the best life has to offer. For more information visit NOSA.org.