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RPVCCA_SR_2010_02_02_10_Mgmt_Founders_ParkMEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR AND MEMBERS OF CITY COUNCI TOM ODOM,INTERIM DIRECTOR,RECREATION AND FEBRUARY 2,2010 MANAGEMENT OF RENTALS AT FOUNDERS PARK CAROLYN LEHR,CITY MANAGER C!9- Staff Coordinator:Katie Howe,Administrative Analyst II RECOMMENDATION That the City 1)discontinue private party rentals at Founders Park 2)direct staff to increase marketing of the Point Vicente Interpretive Center (PVIC)as the primary rental site for private party rentals,and 3)direct staff to investigate venues for small private party rentals that are not in direct competition with private sector businesses. BACKGROUND In early 2006,Council determined that Founders Park was an attractive location for wedding ceremonies and approved an agreement with Trump National to manage rentals at the Park.On April 4,2006,Council entered into a 3-year agreement with Trump National,by which Trump National would manage rentals at Founders Park. The rental fees established were $585 (residents)and $915 (non-residents).Trump National also provided "a la carte"services and packages for a separate cost.At that time,it was determined that managing rentals of Founders Park in-house was cost prohibitive. The agreement for Trump National to manage private party rentals at Founders Park expired December 18,2009.Trump National is proposing a higher fee structure if they are to continue managing rentals at Founders Park.According to correspondence from Trump National,reasons for a higher fee structure include their considerable staff time providing management of rentals,providing wedding planning assistance for brides/grooms,valet service,and unrecoverable golf resort facility use fees.In addition to loss of potential revenue,the General Manager also identified some practices that have impacted golf resort or facility business,including renters disturbing guests by taking large group photos,taking over the locker room facilities,wandering unabated around resort grounds,and exhibiting rowdy or excessive loud behavior. 10-1 Management of Rentals at Founders Park February 2,2010 Page 2 ALTERNATIVES 1.Discontinue Private Party Rentals at Founders Park City Council may discontinue private party rentals at Founders Park and focus marketing efforts on PVIC.This option has the benefits of taking the City out of direct competition with local resort special event booking operations,and it eliminates interruptions to the general public when enjoying park facilities. The revenue lost from discontinuing rentals at the park ($15,500 in 2009)could be offset by additional rentals at PVIC resulting from increased marketing and renters looking for a more affordable coastal private party rental site.For comparison,PVIC is booked for 1O-hour blocks on Fridays and Saturdays for an average of $3,600 -$5,160 or 6-hr blocks on Sundays for an average of $2,350 -$3,436.Hesse Park can be rented for a 3-hour event for $675-$909,or for a 10-hour event for $1,227-$2,007. Lower rates are charged to residents;higher to non-residents. 2.Reflect Trump National Proposed Fee Increase/Changes in New Agreement If the City chooses this option,staff wil1 bring to Council in the near future a revised agreement between the City and Trump National for management of rentals at Founders Park.Trump National has requested an increase in fees to continue managing rentals at Founders Park.The current fee for a 3-hour block of time (Founders Park is rented for 3-hour blocks of time only)is $585 (residents)and $915 (non-residents).Trump National retains $165 of these fees to manage the events.For Trump National to continue management of rentals,they require collection of $2,250 per event.This rate is in addition to the City's fee (resident/non-resident)and does not include two of Trump National's refundable fees:an $800 photography fee and a $600 facility usage fee;and an optional $1 OO/hour golf cart usage fee.This recommendation,if approved,would increase the base rates to rent Founders Park to $2,670 for residents and $3,000 for non-residents. Trump National Golf Club's proposal would discontinue a la carte and package offerings,and incorporates the services of a wedding planner (catering staff),valet services,security guard,and site clean-up fees.The fee structure also includes "intangible"costs based on the assumption of potential loss of business. In conclusion,the elimination of interruptions to the enjoyment of the park by the general public and avoidance of direct competition with resort private party rentals significantly outweighs the public benefit resulting from renting out Founders Park, which is minimal.Therefore,staff is recommending that the City Council discontinue private party rentals at Founders Park,direct staff to increase marketing of the Point Vicente Interpretive Center (PVIC)as the primary rental site for private party rentals, and to investigate venues for small private party rentals that are not in direct competition with private sector businesses. 10-2 Management of Rentals at Founders Park February 2,2010 Page 3 FISCAL IMPACT 1)Should the City discontinue private event rentals at Founders Park,it would no longer receive revenue collected from Trump National;$15,500 in 2009.Revenue lost could be offset by increased marketing of PVIC for private party rentals. 2)If the City renews a contract with Trump National including the proposed rate increase,approximately $15,500 in annual revenue could be generated,assuming the rate increase does not result in fewer rentals. Attachments:Correspondence from Trump National Golf Club Previous contract with Trump National Golf Club 10-3 November 30,2009 Katie Howe Administrative Analyst City of Rancho Palos Verdes Recreation and Parks 30940 Hawthorne Blvd. Rancho Palos Verdes,CA 90275 Dear Ms.Howe, Matt -thank you very much for your time with Ms.Howe a couple of weeks ago to discuss the upcoming renewal for the agreements for weddings in Founder's Park (the "Park'').Some of this will be a rehash of the meeting and some will be some additional detail to ..justify the " increases in pricing that we are proposing. As mentioned previously,the heart of the matter is that we lose a great deal of money on the park weddings thus,if we were forced to continue as-is under the current contract,then we'd have little desire to move forward managing these events and prefer that the City take over this event management.We are happy to continue managing them -and it \ makes sense that we do so for every reason -but with considerable changes.They'are outlined further below but based on the following assumptions: 1)The agreement dated March,2006,was seemingly a trial balloon given the terms were so heavily weighted against any business principles on this end given it was agreed at such a loss in actual and potential revenues for this facility. 2)While we don't wish to seem biased by declaring our facility and our managing of Founder's Park an exception to whatever rules and fees the City has in place for weddings in public parks,the reality is that we should be considered an exception,if not exceptional circumstance.Consider the particulars here: One Ocean Trails Drive,Rancho Palos Verdes,California 90275 •tel:310265 5000 fax:310 265 5522 www.trumpnational.com10-4 a.It is normal for those having a wedding in the Park to exclaim they are having their wedding "at Trump."With that comes an expectation that is considerably beyond the expectation that would be in place for a wedding group seeking a ceremony in any other City park,whether it be at Hesse,Point Vicente,what have you. b.Scope of the facility.Such wedding group~'come here and expect the same access to the facility thatbur $300-paying golfers and (up to-)$150,000 wedding guests receive.All of this for,currently,$585-$915.Thus by haVing weddings here,these groups assume access to locker rooms, restrooms,and photograph opportunities around the facility who are reserved for said groups or outside entities paying site fees for the right to take professional photographs around the facility. c.Given the unique nature of the relationship with this facility managing and maintaining what is City property,it is easy to see how this particular instance of charging wedding groups much more than the "average"City park wedding should be considered an exception. Provided herein is a breakdown of our costs internally to manage these events.Remember that this is not a perfect science,and we are using a couple of general numbers to not disclose too much proprietary information,but the numbers should speak for themselves.Accordingly, our costs per event: 1)Salary of Catering Staff,$210. a.This is based on a Catering Manager spending roughly 7 hours per Park wedding with the client. 2)Extra Valet Staff during event for an average of 75 cars per event, $155.. \ a.B~sed on 3.5 extra Valet Staff for 4 hours per Staff member .. 3)Wage of Security Guard to ensure no interruption of the event during ceremony,$45. 4)Clean-Up after event,$25. a.This is both in the Park and in the Clubhouse,average of 2 hours per event. 5)Intangibles: a.At 7 hours per event,how much time is lost that could be spent finding lucrative business for the Club?And that business cQyJd range in revenue from a $2,500 small party to a-$l"50,000 weddir\g •..'.) b.The distracti6h,··n·oise,and crowding that occurs when a wedding group·"usurps"parts of the Clubhouse for prep or photography,that potentially distracts our guests or " 10-5 adversely affects their experience,thus potentially influencing their willingness to return. Total tangible costs are approximately $435 per event,though we ohly are compensated $165 per event.Thus in the last two years alone,given we have had 40 park weddings,we have lost $17,400 in tangible funds,not to include the intangibles mentioned above.In fact,at 1P Park weddings over the past 2 years,that represents approximately 280 hours spent on these events,or 7 weeks worth of time.If we lowball the extra business they could find into 1 extra event per week,and lowball :that average at $10,000 per event,that figure becomes $70,000 in additional lost revenue over the past 2 years. Our proposal covers a range of new policies and pricing,based on the justification above.In no particular order ... 1)It makes no difference to us how much the City makes per Park wedding.For us,we see $2,250 per Park wedding earmarked for us as a fair amount of compensation.This is not only justified per above's figures,but also represents the low end of the spectrum for what could be booked given the hours spent by our Catering Managers on Park weddi,ngs.Accordingly ... a.If the City still wishes to make $420 for residents and $750 for non-residents,then the total pricing would become $2,670 and $3,000,accordingly.. 2)Refundable costs: a.$800 Photography site fee.What happens all the time- with rare exception -is that the wedding parties usurp portions of the facility (not the park,but our actual property and facilities)for taking pictures.While this is a public facility,we charge site fees for all photography shoots from 0l.!~siders coming in,whether for advertising,pleasure,what h~ve you.We then are handcuffed in that there is the 'adage of customer service/not wanting to be rude,but at the same time reserving the facility for our own bridal parties or the enjoyment of regular guests here to dine or golf.It becomes a huge problem.Park wedding parties may be here to use the Park,but they then assume they're doing their weddings "at Trump",thus essentially take over. (there is more on this below).However,imposing the $800 fee then gives them the right to take photos on'our property,and have one of our Site Reps escort them to help them find the better locations optimally so that it is more efficient for bridal parties and we don't have these wedding parties run into our own bridal parties,who are paying up to 30 ....40 times as much as these park wedding groups.It 10-6 will be optional in that,provided they do not take photographs on our property,then they will be refunded this fee after their event. b.$600 Facility usage fee.We try to reserve our locker rooms for our golfers,but park wedding parties typically take over these facilities as well,once again with them assuming/reasoning that they are having t~eir wedding "at Trump"(please ref above).Thus they come in,get in the way of our guests,and often trash the place (reminder:the bride arid bridesmaids who took over the men's locker room for an hour late this summer prior to a wedding).With this fee,they are able to use our locker rooms,which they enjoy using as a bridal prep area,etc.If they don't use the locker rooms,then they still have the option to use the public restrooms at the back of the clubhouse adjacent to our cart facility,and they can get their monies refunded. 3)Optional costs: a.$100 Hourly cart usage fee.The fee would be charged hourly or any portion thereof (thUS not prorated if cart usage was for,say,1 hour 20 minutes).This will also cover the cost of one of our Staff members operating it to ensure liability issues are;at a complete minimum,both for passengers and equipment in a cart,but for other parkgoers during that day that are not attending the wedding. 4)A la carte pricing and packages.We plan to get rid of these ~ altogether.We have lost additional money in the past because these groups opt to get chairs from us,we ineVitably have another wedding on our Vista Terrace,and we are stuck renting additional chairs and thus paying more for these chairs than we recoup from the Park weddings. The bottom line..is,while I presume this costs more than what other parks the City offersJorweddings,we have now:established that,people come to Founders Park for an expectation in that it is akin -if not the same as- having their wedding "at Trump"(We hear that all the time from them). Accordingly,we have had to find that fine line between accommodating them,and up to now losing a good amount of labor dollars,hours,and business assisting them.I also get the idea that,given our facility was so new at the time of our initial contract,that the first one was akin to a trial balloon and we feel that this is a perfect opportunity for all of us to apply lessons learned so that we don't go into the next contractual period blindly as we did before. Together,we now know and recognize that this situation here is different, and special,from other parks within the City given the location,level of expectation,and ~evel of entitlement that Park bridal parties bring with 10-7 them.They simply naturally expect to be able to use the facility with little regard to other guests -and our regular wedding and reception business -and our job is to accommodate everyone,though equitably so that we are not losing money over the arrangement.Second,we also recognize the already unique relationship in that we ,are managing a Park and spending money to maintain it,while it remains,essentially,City property. In addition,we can then ensure we are providing the va~e to our 'regular wedding ceremony and reception business who invest la'rge sums in us to receive the special,unique,and exclusive Trump National experience. Finally,I have no doubt that the City does not wish to see us continuing to lose money on this or any venture to ensure a healthy Trump National continues to provide valuable tax revenues,local employment opportunities,donations within the community,and national'and international acclaim and prestige to the community and those neighbors around us.We look forward to the City Council meeting on December 15 and working with the City toward both of our entities achieving our desired goals.In the interim,I may be contacted per my contact information below for additional queries or clarifications. q David forti,PGA General Manager/Director of Golf 310.303.3244 dconforti@trumpnational.com cc:Carolyn Lehr Matt Waters "'\ " 10-8 CITY OF RANCHO PALOS VERDES AGREEMENT FOR: Management of Rentals at Founders Park 1.',I .~ This Agreement is made and entered this 18th day of December,2006,by and between the CITY OF RANCHO PALOS VERDES (hereinafter referred to as "City"), and VH Property (hereinafter referred to as "Contractor")witli respect to the following facts and circumstances:the purpose of this Agreement is to memorialize the procedures and policies pertaining to the management by Contractor of public rentals of Founders'Park. RECITALS WHEREAS,City desires to contract with Contractor to perform the services set forth in this agreement,including the Proposal,which is attached hereto as Exhibit "A"and incorporated herein by this reference;and WHEREAS,Contractor represents that it is fully qualified to perform said services; NOW,THEREFORE,the parties hereto do agree as follows: 1.Scope of Services.Contractor shall manage rentals at Founders Park as set forth in Contractor's Proposal dated April 13,2006 (Exhibit "N').The contn:ict is for three years,terminating on December 18,2009. 2.Compensation.Contractor shall not receive any compensation from the City under the terms of its proposal (Exhibit "A").Contractor will make payments to the City as detailed in its proposal (Exhibit "A") 3.Independent Contractor.Contractor is and shall at all times remain,as to City,a wholly independe'ilt contractor.Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor's employees,except as herein set forth.Contractor shall not,at any time,or in any manner,represent that it or any of its agents or employees are in any manner agents or employees of City. 4.Assignment.This agreement may not be assigned by Contractor,in whole or in part,without the prior written consent of City. 5.Responsible Principal.For purposes of this Agreement,Contractor's responsible principal shall be Mike Van Der Goes,General Manager,Director of Golf.The Responsible Principal set forth herein shall be principally responsible for Contractor's obligations under this Agreement and shall serve as the principal liaison between City and Contractor.Designation of another Responsible Principal by Contractor shall not be made without the prior written consent of City. 1 10-9 6.Personnel.Contractor represents that it has,or will secure at its own expense, all personnel required to perform the seNices under this Agreement.All personnel engaged in the work shall be qualified to perform such seNices. 7.Termination.This Agreement may be canceled by the City or Contractor at any time without penalty upon ninety (90)days'prior written notice to the other party. 8.Labor Law Compliance.Contractor agrees to comply "Yith all California labor law requirements applicable to this Agreement and agre$to execute and comply with all requirements of the separate Agreement to Comply with California Labor Law Requirements attached hereto as Exhibit "8." 9.Suit;Recovery of Attorney Fees &Costs.Should either party bring any action to protect or enforce its rights hereunder,the prevailing party in such action shall be entitled to recover,in addition to all other relief,its reasonable attorney's fees and court costs. 10.Insurance Requirements.The Contractor shall at all time during the term of this Agreement carry,maintain,and keep in full force and effect,with an insurance company with a minimum rating of A in the latest edition of Best's Insurance Guide:(1)a policy or policies of broad-form comprehensive general liability insurance with minimum limits of $5,000,000.00 combined single limit coverage against any injury,death,loss or damage as a result of wrongful or negligent acts by the Contractor,its officers,employees,agents,and independent contractors in performance of seNices under this Agreement;.(2)~utomotive liability insurance with a minimum combined single limits coverage of $1,000,000.00;and (3) worker's compensation insurance with a minimum limit of $1 ,000,000.00 or the amount required by law,whichever is greater.The CitY/'its officers,employees, attorneys,and volunteers shall be named as additional insureds on the policy (ies) as to comprehensive general liability,automotive,and worker's compensation coverage. a.All insurance policies shall provide that the insurance coverage shall not be non-renewed,canceled,'reduced,or otherwise modified (except through addition of additional insured to the policy)by the insurance carrier without the insurance car~ier giving the City thirty (30)day's prior written notice thereof. Contractor agrees that it will not cancel,reduce or otherwise modify said insurance coverage. b.Contractor agrees that if it does not keep the aforesaid insurance in full force and effect,and such insurance is available at a reasonable cost,the City may take out the necessary insurance and pay the premium thereon,and the repayment thereof shall be deemed an obligation of the Contractor. c.Contractor shall submit to the City (1)insurance certificates indicating compliance with the insurance requirements set forth above,and (2)insurance policy endorsements,not less than one (1)day prior to beginning of performance under this Agreement.Endorsements must be executed on the City's appropriate standard forms entitled "Additional Insured Endorsement," copies of which are attached hereto as Exhibit "C.". 2 10-10 d.Contractor shall require each of its sub-contractors to maintain insurance coverage that meets all of the requirements of this Agreement. e.The insurance provided by Contractor shall be primary to any coverage available to City.The policies of insurance required by this Agreement shall include provisions for waiver of subrogation. 11.Indemnification.Contractor agrees to indemnify,hol9.harmless and defend City,City Council and each member thereof,and everY officer,employee and agent of CITY,from any liability or financial loss (including,without limitation, attorney's fees and costs)arising from any intentional.r,reckless,negligent,or otherwise wrongful acts,errors or omissions of Contractor or any person employed by Contractor in the performance of this Agreement. 12.Notice.Any notice required to be given to Contractor shall be deemed duly and properly given upon delivery,if sent to Contractor,postage prepaid,to the address provided to City in writing by Contractor or personally delivered to Contractor at such address or any other address subsequently provided to CITY in writing by Contractqr.Any notice required to be given to City shall be deemed duly and properly given upon delivery,if sent to City,postage prepaid, to the address provided to Contractor in writing by City or personally delivered to City at such address or any other address subsequently provided by CITY in writing to Contractor. 13.Entire Agreement.This Agreement represents the entire integrated agreement between City and Contractor,and supersedes all prior negotiations, representations or agreements,either written or oral..This Agree~nt may be amended only by a written instrument signed by both City and Contractor.This Agreement shall be construed without regard to the identity of the persons who drafted its various provisions.Each and every provision of this Agreement shall be construed as though each of the parties participated equally in the drafting of same,and any rule of construction that a document is to be construed against the drafting party shall not be applicable to this Agreement. \\ 14.Governing Uiiw.The interpretation and implementation of this Agreement shall be governed by the laws of the State of California without regard to the choice of law principles of that State.The parties agree that if any legal action or proceeding is brought to enforce the provisions of this Agreement,it shall be brought in any court of the State of California sitting in Los Angeles County. 15.Severability.Invalidation of any provision contained herein or the application thereof to any person or entity by judgment or court order shall in no way affect any of the other covenants,conditions,restrictions,or provisions hereof,or the application thereof to any other person or entity,and the same shall remain in full force and effect. IN WITNESS WHEREOF,the parties hereto have executed the within Agreement the day and year first above written. 3 " 10-11 By:-------'~~",.......,:::...------_I_---- ATTEST: BY:---..!~~~~_~~~~·_ City Clerk By:;...c-----j~_....,.._____r--r:...---_...,_-------­ Its:---b'--=::;,;,....,,;;;;..;....;;....:.:::;;;.--...,;,.---.,;~=-~---- By:_+_ Its:------------------ 4 10-12 CITY OF RANCHO PALOS VERDES INSTRUCTIONS FOR EXECUTION OF INSTRUMENTS THIS IS INSTRUCTION ONLY -IT IS NOT TO BE SIGNED,OR USED IN CONJUNCTION WITH THE AGREEMENT OR ANY OTHE~FORMS THAT MUST BE TURNED INTO THE CITY OF RANCHO PALOS VERDES -IT IS SIMPLY A FORMAT TO USE WHEN FILLING OUT DOCUMENTS. ".i: 1.Byan Individual.The individual must sign the instrument,and if he/she is doing business under a fictitious name,the fictitious name must be set forth.The signature must be acknowledged before a Notary Public,using the proper form of acknowledgment. 2.Bya Partnership.The name of the partnership must be set forth followed by the signatures of less than all of the partners will be acceptable only if submitted with evidence of authority to act on behalf of the partnership.The signatures must be acknowledged before a Notary Public,using the proper form of acknowledgment. 3.Bya Corporation.The name of the corporation must be set forth,followed by the signatures of the President or Vice President and Secretary or Assistant Secretary. The signatures must be acknowledged before a Notary Public,using in substance the following form of acknowledgment. 4.Bya Surety.The name of the surety must be set forth,followed by an~authorized signature.The signatures must be acknowledged before a Notary Public,using the proper form of acknowledgment. STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) )SS. ) On ,';:',20__,before me,the undersigned,appeared known to me to be the _______________of the corporation that executed the within instrument,and acknowledged to me that such corporation executed the within instrument pursuant to its by-laws or a resolution of its City Council. WITNESS my signature and seal. Notary Public (Seal) 5 10-13 April 13,2006 Matt Waters City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes,CA 90275 RE:Proposal to manage Founders Park at Trump National Golf Club Trump National Golf Club proposes that the city review and designate Founders Park as a passive park in order to protect this coastal treasure that provides an incredible ocean view and tranquility to those who use the park. Trump National Golf Club would like to ensure the serenity of the location,maintain the integrity of the game of golf,and provide a composed location for customers and residents using public walking trails and park facilities. Trump National Golf Club does not feel that a passive park will hinder residents or non- residents from a hosting a wedding ceremony or other event in the city of Rancho Palos Verdes.Individuals have access to sites at the historic Wayfarers Chapel,La Venta Inn, and temporarily closed Point Vicente Interpretive Center.Trump National Golf Club currently books Ceremonies and Receptions in our Grand Ballroom and Vista Terrace Lawn area. Trump National Golf Club foresees that allowing ceremonies and other events at Founders Park will b.~:~'problematic due to the following reasons: o Outside rental services will be using public walkways to deliver equipment and supplies necessary,which could cause disruption for walkers. o The public parking lot will become chaotic and overcrowded,therefore leaving no space available for residents to have access to public walking trails. o Noise from events that will infringe on the quiet that is necessary to the game of golf Trump National would like to preserve this park for passive use to ensure that residents may have access to tranquil park and walking trails. 10-14 IfFounders Park is to remain an Active Park,Trump National Golf Club proposes an agreement with the City of Rancho Palos Verdes to manage Founders Park at Trump National Golf Club.The agreement would incorporate the following: o Trump National Golf Club agrees to collect and forward all applicable park reservation application fees to the city of Rancho Palos Y~rdes and keep records available for the city's auditing staff and provide rental records to City staff on a regular,agreed-upon schedule. i,!• l' o Trump National Golf Club would,with City authorization,be able to restrict park and public usage according to the terms of its conditional use permit.(According to the permit's language:The City and/or Trump National are permitted six closures of park and public access a year-subject to City authorization,public access to the blufftop corridor needs to be maintained during the events,the bluff top trails and bluff edge of Founders Park needs to remain open to the public,and a minimum of 50 free public parking spaces need to be available during the events.)This would include a limitation of one rental a day,to be held in a 3- hour window oftime,in the half ofthe parcel of the park,which contains the gazebo. o Events will NOT be restricted to using Trump National Golf Club services when holding events in the park. o Trump National will have City staff information,park usage application,as well as rules and regulations available on the Trump National website.Such information will be available in printable form,which likewise will note the contact information for City staff and Trump National Staff The benefits to the city include: 1)Reducing the payroll costs for maintaining staff at the facility for security, upkeep,maintenance,public relations,and event staff. 2)Reducing lab~r costs for the City for coordination,booking and executing events. 3)High visibility due to website traffic and information being posted on the Trump National website. 4)Increased revenue for the City while maintaining a discount for Rancho Palos Verdes residents. Trump National Golf Club is NOT proposing a privatization of the park.The parks and beach access will remain open to the public from 6:00AM to sunset. The Trump organization has a long history of successfully managing publicly owned properties.Two perfect examples include the Wollman and Lasker ice-skating rinks and parks. " 10-15 Located in the heart of central park,the Wollman and Lasker ice-skating rinks and parks have become some of New York's greatest tourist attractions.When The Trump Organization agreed to manage and operate the parks and rinks for the city,the city began realizing a constant stream of positive cash flow,all with no liability and no out-of- pocket costs. Trump National Golf Club firmly believes that the City of Rancho Palos Verdes and its citizens would benefit greatly through this agreement,the same \yay the City of New York has:both financially as well as operationally.~', ('... Sincerely, Stacia Solis Executive Coordinator Trump National Golf Club Direct:310.303.3216 Fax:310.265.5522 SSolis@TrumpNational.com www.TrumpNational.com 10-16 Exhibit A VH Property Proposal to Manage Founders Park o Rental Procedure o Contact fuformation ;',. I' o Fees and Package Pricing o Revenues and Cost o Facility Contract o Facility Use and General Rules Rental Procedure VH Property will coordinate ceremonies and events in order to ensure that there will be no concurrent events.We will designate coordinator to book staggered events to ensure that two will not be booked at the same time to maintain a peaceful atmosphere; , a.fuitially the potential renter will contact Stacia Solis in the Catering and Sales Department to inquire about a ceremony or other event. b.The coordinator would then check availability of dates and list them to the potential client.(Via email,letter correspondence,or verbally) c.The client may make an appointment to come and view the facility and discuss package options. d.Ifthe,~pplicant wishes to book the date they may fill out the outdoor use andJridlity use application and make a deposit to contract the date. e.There will be no holding of dates without a contract and payment of a deposit. £Reservations will be taken on a first-come,first-served basis. VH Property will have Founders Park application packets available at the Trump National Golf Club events office as well as on the Trump National website.Such information will be available in printable form,which likewise will note the contact information for City staff and Trump National staff.fuformation about Founders Park rentals will also be available at Rancho Palos Verdes City Hall as well as on the City's website. 10-17 Contact Information Stacia Solis Executive Coordinator Trump National Golf Club Direct:310.303.3216 Fax:310.265.5522 SSolis@TrumpNational.com www.TrumpNational.com Event Pricing Residents Mandatory Costs ~' ,I I i/. Non-Residents Site,Administrative, Security and Labor Fee (3 hours) A la Carte Pricing Chairs (for up to·300 guests,includes set uplbreakdown) Chairs (for up to 150 guests,includes set uplbreakdown) Audio Technician RehearsallEvent Coordinator Chairs,decorations,audio systems,and other services can be brought to the site by other vendors. Packages $585 $863 $432 $518 $345 $915 $863 $432 $518 $345 Golden Moment~ On the bluffs of the Palos Verdes Peninsula,with sweeping views of the Sparkling Pacific, majestic coastline,and picturesque Catalina Island,Founders Park is the perfect setting for romance. Your event will include set up and breakdown of traditional white folding chairs for up to 300 guests, and audio teclmician to monitor your event,and a rehearsal and ceremony coordinator Residents $2,200 Non-Residents $2,600 Silver Splendor With the magnificent backdrop of the Palos Verdes Peninsula,Founders Park is one of the most romantic settings in Los Angeles County. Your event will include set up and breakdown of traditional white folding chairs for up to 300 guests, and audio teclmician to monitor your event. Residents $2,000 Non-Residents $2,400 10-18 Revenues and Cost Breakdown of Costs: Total =$2085 Chair rental for 300 guests at $2.50 per chair- Hourly labor fee for set upl clean up at $14 per hour- Administrative Fee at $15 per hour - Security Fee at $12 per hour- Audio Technician- Event Coordinator City Fee residents) $750 $84 . $450'., $36 $450 $306 . $420 (residents)$750 (non $2415 The city will receive per event $420 for Rancho Palos Verdes residents or $750 for non- residents.The City will be sent the checks on a monthly basis which will include payment from VB Property as well as a detailed breakdown of the months past events. VH Property will be receiving the residual profit from packages and a la carte pricing, which will average 6%or $150 per event for the Golden Moments Package,an average of 11 %or $250 for the Silver Splendor Package. Chairs,decorations,audio systems,and other services can be brought to the site by other vendors.,, 10-19 Facility Use General Rules Founders Park All applications for reservations must be on official contracts provided by VB Property. For the purpose ofthis policy,"Resident"shall mean in the case of an individual, principal piace of residence is in the City of Rancho Palos Verdes;in the case ofa group, majority of its members reside in Rancho Palos Verdes;in the c~e ofa business or religious organization,must be located in Rancho Palos Verdes.'Post Office Boxes do not constitute a residence. Any organization or individual using the facility may not restrict use of such facility by reason of race,creed,age,sex or national origins. All field (park)use fees are per hour,minimum three-hour use unless otherwise noted. Should facility users exceed their reserved time,an additional fee will be assessed at two- times the hourly rate. All groups and or individuals are responsible for notifYing the Facility Coordinator of any change in their use of the facility,especially canceled dates.Thirty (30)days written notice is required to cancel reservations.Failure to notify (outside thirty days)will result in forfeiture of all fees and deposits.All cancellations outside thirty (30)days will be charged a minimum $50 fee. Contracts will be issued only to persons 21 years of age or older.Where liquor is to be dispensed as a part of use,applicant must be 21 years of age.The person signing the contract must be present at the event,I.D.may be required.A ~haperone,21 years of age or older will be required for every 15 participants at children's and teen events.A list of chaperones with addresses and phone numbers may be required/requested. Any group using the park must provide a liability insurance certificate naming the City of Rancho Palos Verdes and VH Property as additionally insured in an amount not less than $1,OQO,OOO single limit liability.Additional insurance will be required for those events where alcohol is consumed.An insurance certificate must be on file with the Facility Coordinator five worl,\ing days prior to any approved use . ......\ A security deposit'will be required of all groups and individuals prior to facility use.In order to qualify for a full refund of security deposit,the facility must be cleaned and returned to the condition in which it wa&found (minus nonnal wear and tear).All clean up must be accomplished within the hours designated on the approved facility use contract.Groups and or individuals interested in a multi-use contract may post a seasonal or annual security deposit as applicable. No tape,nails,stakes,floors,tents will be pennitted without prior authorization of the facility.A staff person is available to indicate appropriate areas if pennission has been granted for use of the above mentioned items.Ifin doubt,please ask!Moon bounces and carnival-style rides are not pennitted. 10-20 Groups requiring time to decorate,set-up or clean-up,or other preparations must include such time in their original application.Normal closing time for the park will be 1 hour after sunset,unless otherwise approved by the facility.Storage is not available. Any individual or group causing property damage will be required to pay for same based upon current costs or repairs or replacement including any staff time incurred.Until payment is received,the facility shall have the right to cancel the individual or groups current contract (ifmultiple)and reject any further applications.,Any individual or group who fails to abide by established rules and regulations,exhibits uiiruly or unlawful·t behavior,or fails to cooperate with staff may have their contract revoked at any time and be rejected for any further applications. Use of any facility-user sound system including but not limited to live bands,stereos,or disco systems will not be permitted without the prior consent or approval ofVH Property in conjunction with the City of Rancho Palos Verdes policies and guidelines.Use of any sound system will be considered on a case-by-case basis with specific attention to residential and patron impact.Amplified sound systems are not permitted on exterior park grounds. Rice,birdseed,confetti,etc.,may not be thrown inside or outside of the facility/park. Releasing of balloons on City and Trump National Property is prohibited. Forfeiture of security deposit will result if this rule is violated. ., 10-21 CITY OF RANCHO PALOS VERDES Rental Date:---------- Department of Recreation and Parks Outdoor Facility Use Application Founders Park Area Requested: Date Requested: Type of Activity: Hours Requested:-------------- ~. ,1, ,',. I:to--~------------- Total Hours Anticipate Attendance:Youths Adults Name of Applicant: Address: Home Phone: Business Phone: Name of Organization:--------------------------------- Your Position in the Organization:----------------------------- The majority of members reside in the city of: Insurancefor this activity must be carried in a minimum amount of$1,000,000 single limit liability coverage naming the City ofRancho Palos Verdes and VH Property additionally insured.Insurance certificate must be submitted to the General Manager of Trump National Golf Club no later than 5 working days prior to the rental date.Insurance coverage may also be purchased through the City ofRancho Palos Verdes. Your organization's insurance carrier:_ Address: Telephone::'>Coverage:Public Liability Property Damage INDEMNITY STATEMENT:I hereby certify that I will abide by all rules and regulations of the City of Rancho Palos Verdes and VH Property and will enforce such rules among participants in my organization.As a duly authorized representative of the requesting organization,and on behalf of the requesting organization,I agree to save,keep and bear harmless the City of Rancho Palos Verdes and VH Property and all of its officers and agents from all damage costs or in law or equity (including costs of suit and expenses for legal services)that may arise or be set up because of damage to property or death or injury to persons received or suffered in connection with the event described above which may be occasioned by any negligence on the part of the requesting organization or any of its agents or employees,or my act of omission to act on the part of said organization its agents or employees which result in a dangerous condition of property on requested City facility. I have read,understand,and will abide by the approval criteria,prohibitions and other requirements listed in accompanying documents. Signature:Date--------------------------'..:.=---------10-22 ONE MILLION DOLLARS LIABILITY INSURANCE PURCHASED THROUGH CITY $_ SECURITY DEPOSIT (REFUNDABLE IF CONDITIONS MET)$500 PER SEASON $_ TOTAL DUE $_ Deposit Date Paid _~_$500 Date Paid _ Date Paid _ Amount _ Amount -------Balance i,• " $------ $------- This permit is applicable only to the activity specified above and may not be construed as exclusive use of the area. The City and VB Property reserves the right to cancel this permit where City functions conflict.Permission for any other event must be in writing from the Director of Recreation and Parks. Authorizing Signature Comments: Event Pricing Mandatory Costs Site,Administrative, Security and Labor Fee (3 hours) A la Carte Pricing Chairs (for up to 300 guests includes set up/breakdown) Audio Technician Rehearsal/Ceremony Coordinator Packages Residents $585 $863 $518 $345 Non-Residents $915 $863 $518 $345 Date ---------- ,, Golden Moments On the bluffs of the Palos Verdes Peninsula,with sweeping views of the Sparkling Pacific, majestic coastline,and picturesque Catalina Island,Founders Park is the perfect setting for romance. Your event will include set up and breakdown of traditional white folding chairs for up to 300 guests, and audio technician to monitor your event,and a rehearsal and ceremony coordinator Residents $2,200 Non-Residents $2,600 Silver Splendor With the magnificent backdrop of the Palos Verdes Peninsula,Founders Park is one of the most romantic settings in Los Angeles County. Your event will include set up and breakdown of traditional white folding chairs for up to 300 guests, and audio technician to monitor your event. Residents $2,000 Non-Residents $2,400 10-23 Ex'h/b1r - AGREEMENT TO COMPLY WITH CALIFORNIA LABOR LAW REQUIREMENTS [Labor Code 1720,1773.8,1775,1776,1777.5,1813,1860,1861,3700] The undersigned Contractor certifies that it is aware of and hereby agrees to fully comply with the following provisions of California law: 1. 2. Contractor acknowledges that this contract-is subject to the proy,j,sions of Division 2,Part 7, Chapter 1 (commencing with Section 1720)of the California Laborl;Code relating to public works and the awarding public agency ("Agency")and agrees to be bound by all the provisions thereof as though set forth in full herein. I',• j' Contractor agrees to comply with the provisions of California Labor Code Section 1773.8 which requires the payment of travel and subsistence payments to each worker needed to execute the work to the extent required by law. " 3.Contractor agrees to comply with the provisions of California Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages.The Contractor shall,as a penalty to the Agency,forfeit not more than fifty dollars ($50)for each calendar day,or portion thereof,for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under the contract by Contractor or by any subcontractor. 4.Contractor agrees to comply with the provisions of California Labor Code Section 1776 which require Contractor and each subcontractor to (1)keep accurate payroll records,(2)certify and make such payroll records available for inspection as provided by Section 1776,and (3)infonn the Agency of the location of the records.The Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors. ,, 5.Contractor agrees to comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects,and further agrees that Contractor is responsible for compliance with Section 1777.5 by itself and all of its subcontractors. 6.Contractor agrees to comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours.The Contractor shall,as a penalty to the Agency,forfe~t twenty-five dollars ($25)for each worker employed in the execution of the contract by the Gbntractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in anyone calendar day and 40 hours in anyone calendar week in violation of the provisions of Division 2,Part 7,Chapter 1,Article 3 of the California Labor Code. 7.California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees.In accordance with the provisions of California Labor Code Section 1861,Contractor hereby certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that de,and I will comply with such provisions before comme 1 g the perfo nce of the work of this contract." Date 3-/4 ...0, 10-24