HomeMy WebLinkAboutRESOLUTION - 3-07 - 1/9/2007 - AGREEMENT WITH SPECIAL EVENTSFROUR OF ELK GROVE BIKE RACERESOLUTION NO. 3-07
A RESOLUTION AUTHORIZING THE MAYOR AND VILLAGE CLERK TO
EXECUTEA' LETTER OF AGREEMENT BETWEEN THE VILLAGE OF ELK
GROVE VILLAGE AND THE CHICAGO RUNNING AND SPECIAL EVENTS
MANAGEMENT INC., d/b/a CHICAGO SPECIAL EVENTS MANAGEMENT (SEM)
TO MANAGE AND PRODUCE THE 2007, 2008 AND 2009 TOUR OF ELK GROVE
(INTERNATIONAL BIKE RACE)
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Board of Trustees of the
Village of Elk Grove Village; Counties of Cook and DuPaae; State of Illinois as follows:
Section 1: That the Mayor be and is hereby authorized to sign the attached documents
marked:
LETTER OF AGREEMENT
a copy of which is attached hereto and made a part hereof as if fully set forth and the Village
Clerk is authorized to attest said documents upon the signature of the Mayor.
Section 2: That this Resolution shall be in full force and effect from and after its
passage and approval according to law.
VOTE: AYES: 5 NAYS: 0 ABSENT: 1
PASSED this 91h day of January 2007
APPROVED this 9`h day of January 2007
APPROVED:
Mayor Craig B. Johnson
Village of Elk Grove Village
ATTEST:
Ann I. Walsh, Villaae Clerk
Kc>Lcthmt: \ _ ntuwm i I? \ I ]i vt",
Letter of Agreement
Elk Grove Village
This Agreement (the "Agreement") is by and among Chicago Running and Special Events Management
Inc., d/b/a Chicago Special Events Management (hereinafter referred to as "SEM") and Elk Grove Village
(hereinafter referred to as "Client"), with a mailing address of 901 Wellington Ave, Elk Grove Village, IL
60007, for the Client to retain the services of SEM to manage and produce the 2007, 2008 and 2009 Tour
of Elk Grove, an international bike race (hereinafter referred to as the "Event"), for a an event owned by
the Client.
Section 1.
Definitions. As used herein, the following terms shall have the following meanings:
A. Host. A location or place that has ownership rights to land that can be used for a period of time to stage an
event.
B. Name and Date of the Event. The name of the Event will be the "Tour of Elk Grove". The Event will be
scheduled when possible on the 2`d weekend of August 2007, 2008 and 2009, which will be mutually
agreed upon and in concert with the requirements of the United States Cycling Federation.
C. National Governing Bodies (NGB). The Olympic sanctioned governmental agencies representing their
respective sports.
D. USPRO. The United States Professional Cycling Association.
E. USCF. The United States Cycling Federation.
F. UCI. Union Cyclist Internationale, The International Sanctioning Body of Cycling.
G. Event Planning. Consultation and administrative services provided for a project or event.
H. S onsor. A person, firm or company that financially supports the event through a monetary commitment
(cash) or trade that is directly budget relieving to the expense of the event and receives benefits from such
involvement which may include sales, marketing or advertising.
I. Media Partners. Sponsors of promotional value whose monetary value can be established through the
cost of advertising as concluded by the fair market value of such advertising.
J. Production Services. The setup, operations, management and take down of an event site, which includes:
labor, goods and services and equipment.
K. Term. The term of this Agreement is set forth within this agreement and commences upon execution of
this agreement. It concludes upon final payment and execution of the provisions set forth within
agreement.
L. Block Party. An on -street musical event for which admission is free of charge complete with food and
drink vendors serving items for sale to the general public. The Block Party will take place immediately
following the last race event on Saturday evening.
Section 2. Scope of Senrioes.
Pre -Planning.
SEM shall work with the Client's appointed liaison to plan the event (including a Block Parry following the
bicycle race if requested by client at time of determining the following year's race event), which shall include,
but shall not be limited to, the following services: acquiring sanctioning permits, developing a course, creating
an operating budget, preparing a time line and site plan, preparing an event day agenda, securing goods and
services, ordering stage and equipment, securing musical talent, addressing musical service contract and any
riders, developing food/drinks vendors, and preparing a day of event operational plan.
A Administrative.
Time Line: SEM will develop a working timeline for the recruitment of athletes,- pre -event advertising to
attract athletes, day of the event logistics, service orders, merchandise arrangements and other related
services.
Site Selection and Course Layout: A SEM event manager will meet with officials who are nationally and
internationally recognized to review and- approve championship cycling courses. A SEM event manager
will accompany the representative to review the proposed course and obtain certification.
Sanctioning Permits: SEM will prepare a written request and submit sanctioning permit applications to all
the governing bodies for approval to stage the event. SEM personnel will complete all correspondence
and required follow-up. The SEM Management Team will make all necessary presentations to the NGB's
as needed to obtain sanctioning for the event.
Budget: SEM has facilitated the creation of an event budget. SEM will provide a complete financial
accounting of the event. A photocopy of each invoice, if requested, will accompany the financial statement
for the event. The working budget will be tailored to the actual income of the event allowing adjustments
based on income.
Registration and Recruitment: SEM will recruit international and national athletes for participation in the
event. SEM will coordinate a direct mailing to teams and individuals registered with the national and
international NGB's.
Consultation: SEM managers are available for general consultation for all aspects of the event. Upon
proper notification, SEM personnel will attend meetings to discuss the event.
State Grants: SEM will work with Client and provide information necessary to submit grant applications to
help underwrite cost of the event or to advertising cost associated with tourism.
Data Base Management: SEM will receive and enter all registrations into a participation database and
record demographic information as appropriate.
Volunteers: The parties will jointly recruit volunteers to assist with course marshal positions along the race
route. The SEM Volunteer Coordinator will develop a volunteer requirement outline. On-site, pre -event
training and the placement of volunteers will be managed by SEM. SEM will prepare a course marshal
plan. The SEM course marshal plan will outline duties and responsibilities of the course marshals
volunteers, including, expected time of arrival, total required time commitment and any special apparel that
may be required.
Information Requests: Participants will be directed to contact SEM with questions pertaining to the event.
SEM's phone number will be placed on all registration collateral materials. SEM office personnel will be
trained on the particulars of the event and will be prepared to answer questions relating to the event. The
SEM voice mail system will include a separate mailbox containing an informational message for the event.
The event will be included on the SEM website.
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B. Preparing a Site Plan.
SEM will formulate a site plan for the event. It will include placement of all services and activities (including
block party if requested by client). Information booths, portable restrooms, parking, aid stations, command
post, product areas, sponsor areas, generators and reviewing stands. This site plan will be circulated and
discussed with all key personnel involved in the event.
C. Preparing an Event Day Agenda.
SEM will write a logical and manageable agenda, which will encompass the day of event activities. The
agenda will include a detailed list of activities and personnel responsibilities to include but not limited to:
start and finish line set-up; aid stations; staffing positions; product and equipment deliveries;
placements of services such as Port -o -Lets, dumpsters, generators, road closure barricades, crowd
control barricades, tents, tables and chairs.
Race Coordination.
SEM will be responsible for the following coordination of the event:
A. Solicitation of participants
• Place listings in local newspapers and magazines.
• Secure advertising in cycling publications.
• Execute a direct mailing of participant brochures.
• Utilize SEM's database to direct mail and solicit participants.
• Broadcast email event information to SEM email database.
• Utilize the NGB's mailing list.
B. Processing
• Enter all participant information into the event database.
• Create a computerized results program for timing purposes.
C. Logistics
• Setup site to events specifications as required by the NCB's.
• Erect scaffolding to hold start/finish banners.
• Setup up start/ finish lines.
• Setup and operate registration.
• Setup a computerized timing system.
• Place goods and services at the event.
• Erect and place tents.
• Position refreshments.
• Setup course directions with signage.
• Mark out and identify meter locations close to the finish line.
• Setup and supply aid stations with equipment and product.
• Provide labor for specific areas of the event.
• Setup a public address system (sound system) to communicate with participants and crowd.
• Setup a stage for awards presentation.
• Coordinate volunteers.
• Answer and respond to calls for information.
• Provide event day production.
• Meet with volunteers and place them in their assigned work areas.
• Oversee on-site medical services.
• Take delivery of supplies and transport to the event site.
• Disassemble event site and remove debris.
• Prepare a post event financial statement; and
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• All items associated with the block party including:
• Stage ordering/set-up/take-down;
• Securing music talent
• Ordering equipment
• Fully addressing contracts & riders associated with music talent
• Securing food/beer/drink vendors
D. Day of Event Operations
• SEM will select experienced workers to serve as key support personnel.
• SEM will organize, allocate and instruct volunteers on-site during the event.
• SEM will manage and supervise key areas of the event.
SEM will coordinate and supervise day of event activities to include:
a. Event set up
b. Sponsor space assignments
- c. Clean up "
d. Participant management
e. Crowd Management
f. Street closure
g. All operational aspects of the races
h. Professional announcers
i. Equipment delivery, set-up and placement, including but not limited to:
1. Truss systems
2. Sound for Public Announcements
3. Crowd control and course barricades
4. Big wheels and helmets
5. Tents, Tables and Chairs
6. Staging/Viewing Stands
7. Video finish line cameras
8. Large digital display clock
9. Snowfencing
10. Traffic cones
11. Warning flags and vest
12. Walkie Talkies
13. Generators
14. Complete VIP area with hospitality
15. Block party stage
16. Block party generators/equipment
E. Division of Responsibilities
a. Client will act as the Host City in its rights to the 2007, 2008 and 2009 Events.
b. SEM will act as the local organizing committee for the 2007, 2008 and 2009 Events and will
be Client's only representative who will interface with the National Governing Bodies to
include the following: USA Cycling, USPRO, USCF, and UCI.
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c. Client will provide an area on its streets to stage the 2007, 2008 and 2009 Events. SEM and
Client will work together to locate an acceptable staging area for the event.
d. SEM will provide the rights to stage the event, national and international sanctioning permits
and permission.
e. Client will provide paramedics to be on-site during the event.
f. SEM will provide an official and the necessary materials for drug testing of athletes.
g. Client will provide police officers stationed at key intersections on the course during the
operational hours of the event. SEM will provide course barricades to ensure safety of the
course area.
h. SEM will strike/take down starting at the conclusion of the last race on Sunday and Client
grants SEM a minimum of four hours for final course cleanup and clearance.
Section 3. Right to Renew.
Client's right to renew this Agreement, if any, is to be stated in writing and sent to SEM on or before November
1 st, 2009.
Section 4. Management Fee.
Client agrees to pay SEM a $30,000.00 (Base Fee) for the event management in 2007, $31,500 in 2008 and
$33,000 in 2009 for consulting and administrative services, plus sponsorship commissions as outlined in
Section 9, and for all reimbursable expenses agreed upon between the two parties and outlined within the
event budget. Client shall pay SEM the base fee in the manner provided in Section 23.
Fees. The Base Fee covers consulting time, during which SEM will complete the portions of the event
management mutually agreed upon and outlined within this agreement, provided there are no changes in the
scope of SEM's engagement with Client. If, due to changes requested by Client, the parameter of the
management changes for SEM to complete the event management, and/or to finalize those portions of the
event not covered by the Base Fee, Client will pay SEM the additional fees mutually agreed upon prior to
service.
Expenses. In addition to Fees invoiced to Client, Client shall reimburse SEM for all out-of-pocket expenses
incurred by SEM on behalf of Client (collectively, the "Expenses"), including but not limited to postage,
messenger services, design, photography, stationary supplies, clipping services, goods and services related to
the event operations, necessary equipment used on-site and agreed upon between the two parties and
outlined within the event budget. All expenses will receive prior approval from the client if expense is in excess
of $250 or 10% more than the budgeted amount once a budget is approved. SEM shall not incur any
individual Expense on Client's behalf in excess of $1,000 unless Client first submits the full amount of such
expense to SEM.
Section 5. Media and Promotion.
SEM will advertise the Event internationally, nationally and locally as mutually agreed upon in the marketing
plan into the international cycling community as well as to the national audience in the United States.
On a local basis, SEM will make its best efforts to assist with local media trade to include cable companies,
television networks, radio stations and newspapers. Subject to Client's approval, SEM will provide all media
placements with respect to the Event and SEM will determine the amount of media used to promote the event,
which shall be in an amount reasonably sufficient to maximize attendance and participation in the Event, as
measured by successful Events of a similar and like nature. All uses of Client's name or logo shall be subject
to Client's prior approval if used by SEM. All advertising will acknowledge SEM's name, service mark and logo
as the management company producing'the Event.
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Section 6. Si na e.
Client will inform SEM within ten days of the event all signage that needs to be displayed at the event including
signage from local corporate sponsors and for municipal recognition purposes. All costs associated with the
design and construction of banners for Client or its respective sponsors or affiliates shall be paid for by the
client and if necessary, implemented into the budget. SEM is not responsible.for any damage to signage that
is part of usage for outdoor events which.includes weather (wind, rain or mud), participant, spectator or general
public abuse, loss or damage beyond normal control of SEM, its employees or officers.
Section 7. Distribution of Literature.
Each party shall not distribute any advertisements or promotional literature without the prior review by the other
parry. All drafts should be forwarded to the other party for review. SEM and Client agree that all drafts being
reviewed will be completed with 72 hours of receipt. All approved literature will be subject to compliance with
municipal ordinances and governmental regulations.
SEM will coordinate and execute the direct mailing of the participant's brochures. SEM will oversee the
process of labeling, mail house bundling and the execution of the physical mailing sent directly to potential
applicants for participation.
Section 8. Complimentary Entry Fees.
Client and SEM may agree to give away a certain amount of complimentary entry fees to local and national
sponsors, invited guest, politicians, celebrities, etc., and, if so, such terms shall be set forth jointly between the
two parties no later than ten days prior to the event.
Section 9. Sponsorship Commissions.
Client grants SEM the right to develop and sell corporate cash and in-kind sponsors into the event. Sponsors
may become official sponsors of the event as set forth within the agreement between SEM and sponsor.
Client agrees to pay SEM a 17% commission for cash sponsors secured for the event by SEM. Client further
agrees to pay SEM a 3% commission for cash sponsors secured for the event by Client.
Any in-kind sponsors secured by SEM for the event will be excluded from any commissions unless specific
sponsor provides budget -relieving expenses. In-kind sponsors that provide budget relieving expenses will be
commissioned at a 10% rate after a fair market value is determined between the Client and SEM.
SEM does not guarantee the sale of any sponsorship for the event. SEM will make its best efforts to align
potential sponsors or current relationships with the event where and when possible.
Section 10. Indemnification.
A. SEM shall indemnify, defend and hold Client harmless from any and all claims arising out of the
production and management by SEM, its officers, directors or employees, of the event, provided that this
indemnity shall not extend to any claims arising out of or in connection with any acts or omissions of Client,
whether or not such acts or omissions amount to negligence.
B. Client shall indemnify, defend and hold SEM harmless from any and all claims arising out of or in
connection with (i) any acts or omissions of Client, its officers, directors or employees, (ii) the use of
SEM's name or logo by Client, (iii) the use, operation or transportation of any of Client's equipment,
whether or not such acts amount to negligence and (iv) the conduct of any promotion by Client in any way
related to the event, SEM or the location of the event.
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C. Insurance. The parties agree to purchase an event policy covering all athletes, spectators, workers and
volunteers. This liability insurance policy will have amounts minimally of $2,000,000. The cost of this
policy will be placed into the overall operating budget. Both parties shall be included on the policy as
insured holders of the policy. Failure of either party to request such coverage shall not be deemed a
waiver of this requirement.
D. SEM maintains an insurance policy for money collection. This policy covers theft and loss up to $20,000
per occurrence. SEM maintains a collection procedure that is in accordance with our carrier. The theft
and money collection policy is enforced only if SEM is collecting money on -behalf of client, supervising and
managing collections during the event.
E. SEM maintains an auto insurance policy for coverage on vehicles owned, leased, rented or borrowed with
respect to the operations of SEM workers for use during the events. This policy is $1,000,000 of liability,
S500,000 for collision and $500,000 for comprehensive.
F. SEM maintains an off -premise insurance policy that covers our clients up to $20,000 for goods or
equipment held by SEM for the client during transportation to and from the event or in connection with the
services provided by SEM for the client.
G. SEM maintains a workers compensation policy for its employee's at a $500,000 limit.
Section 11. Pickup and Deliveries.
SEM owns vehicles that are available for pickup and delivery usage on a scheduled basis. Transportation can
be provided in advance with proper notification (not less than 48 hours) prior to the pickup or delivery. The
cost of a pickup or delivery is S155.00 for a two-hour minimum. if multiple pickup or deliveries are needed and
more than two hours is incurred in the process, the additional charge will be $25.00 per hour after the initial two
hours.
Section 12. Web Site Design and Management.
SEM owns and maintains a web site listed as Chicagoevents.Com. SEM will promote the event through its
website. In addition, SEM will design an event page or stand-alone website and continuously update
information related to the event. The page will include: an overview of the event, profile on your community,
sponsor information, event application, on-line registration and link to the client's site or its affiliates (if
applicable). Web services incur a third party fee that will be quoted and placed into the budget.
Section 13. Rental Equipment.
SEM will act on -behalf of the client as an agent when ordering supplies and or rental equipment. SEM
maintains an insurance policy with a $1500 deductible, which covers all rental equipment used for all events.
SEM will be responsible for the usage of this equipment unless the equipment is used directly by the client, its
employees or volunteers. Equipment used by any of the client's designated workers or volunteer's remains
the responsibility of the client if loss or damage occurs during the usage of the rented or leased equipment.
Section 14. Further Assurance.
Each party to this Agreement, upon the request of any other party to this Agreement, will execute,
acknowledge and deliver such further documents or instruments and perform such further acts as may be
necessary, desirable or proper to carry out more effectively the purpose of this Agreement. Each of the
individuals executing this Agreement certifies that he or she is duly authorized to do so.
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Section 15. Employee Wages.
SEM may hire key and Event experienced personnel for temporary employment to work in various capacities
within Events. Such temporary personnel shall be charged to Client as a reimbursable expense subject to
section four of this Agreements at the rates listed immediately below. SEM shall at all times be responsible for
the management and performance of such temporary personnel. The rates listed below cover the cost of
workmen's compensation insurance, general liability insurance, administrative cost and federal and state tax
statements. Average wages are as follows:
Supervisor:
Key Staff:
Data inputting:
9 Experienced Labor
General Labor:
Section 16. Assignmerit.
$20.00-$22.00 per hour
$13.00-$15.00 per hour
$15.00-$20.00 per hour
$12.00-$14.00 per hour
$10.00-$12.00 per hour
This Agreement or any part hereof will not be assigned or transferred by SEM to any person, firm, corporation,
or partnership that acquires ownership or management of SEM. This Agreement or any part hereof shall not
be transferred, conveyed or assigned by Client, nor shall the use of the rights, duties or obligations granted
under this Agreement in whole or in part be granted by Client without the prior written consent of SEM.
Section 17. Relationship of the Parties.
The parties are acting herein as independent contractors. Nothing herein contained shall create or be
construed as creating a partnership or joint venture. SEM shall act as an agent on behalf of the Client for its
general event consultation, vendor ordering, on-site production and municipal request as it pertains to the
event and this agreement. The parties agree that neither entity shall have the authority to bind the other in any
respect without prior approval between the two parties. Client shall be solely responsible for all wages, income
taxes, worker's compensation and any other requirements for all its personnel and any of its supplies pursuant
to this agreement. Sales taxes, if any, shall be the responsibility of the Client for any goods or services sold
on-site by client.
Section 18. Successors and Assigns.
All of the terms of this Agreement shall apply to, be binding upon and inure to the benefit of the parties hereto,
their successors, assigns, heirs and legal representatives, and all other persons claiming by, through or under
them.
Section 19. Entire Agreement and Modification.
This Agreement contains the entire agreement between the parties relating to the subject matter hereof and all
prior agreements relative hereto which are not contained herein are terminated. This Agreement may not be
amended, revised, or terminated orally but only by a written instrument executed by the party against which
enforcement of the amendment, revision, or termination is asserted. Any alleged amendment, revision or
termination, which is not so documented, shall not be effective as to any party. With respect to termination,
either party may terminate this Agreement by providing notice, in writing, of the intended termination. The
notice to terminate must be delivered within 90 days following the Event in any calendar year set forth herein,
or any renewals thereof.
Section 20. Applicable Law.
This Agreement shall be governed by and construed according to the laws of the State of Illinois from time to
time in effect.
Section 21. Force Maioure.
The failure of either party hereto to comply with the terms and conditions hereof because of an act of God,
strike, labor troubles, war, fire, earthquake, act of public enemies, action of federal, state or local governmental
authorities or for any reason beyond the reasonable control of such party, shall not be deemed a breach of this
agreement except in the event of cancellation, SEM shall be entitled to a specific expense payments as
outlined in this agreement in Section 23.
Section 22. Notices.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall
be deemed to have been given if hand -delivered or express mailed, signature requested.
(a) If to Client, as follows:
Elk Grove Village
Municipal Building
901 Wellington Ave
Elk Grove Village, Illinois 60007
Attn. Raymond Rummel
And, (b) if to SEM, as follows:
Chicago Special Events Management
1960 North Clybourn Avenue
Rear Building
Chicago, Illinois, 60614
Attn. Hank Zemola
Section 23. Payments.
Client agrees to the following:
The parties agree that Client has a limit of financial responsibility not to exceed more than $125,000.00.
Therefore, SEM is solely responsible for any additional expense that exceeds $125,000.00 regardless of
the conditions unless the Village has placed in writing the authorization to SEM that they will assume
additional expenses.
Client agrees to pay SEM its financial contribution of $125,000.00 according to the payment schedule
based on the following dates. Payments will be made on corresponding dates in subsequent years of this
contract:
$5,000.00 by January 15, 2007
S15,000.00 by February 1, 2007
$15,000.00 by March 1, 2007
$15,000.00 by April 1, 2007
$25,000.00 by May 1, 2007
$25,000.00 by June 1, 2007
$25,000.00 by August 1, 2007
Excess income over expenses will be distributed to the Client from SEM within forty-five working days after
the event.
Section 24. Conditions.
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Should the event be canceled due to conditions beyond the control of SEM within thirty days of the event,
i.e., Acts of God, War, Terrorism, Severe Property Damage Due to Weather, Client will reimburse SEM its
management fees to date for administrative cost and planning plus documented expenses already incurred
and not recoverable by refunds. Should the event be canceled within seven days of the event, SEM will be
entitled to its full management fee plus documented non-refundable expenses.
The spirit of this agreement is based on mutually dooperation.
AGREED AND ACCEPTED on this 10th day of January 2007.
ELK GROVE VILLAGE
By, Craig B. Johnson , Craig B. Johnson, Mayor
Attest: Ann I. Walsh , Ann I. Walsh, Village Clerk
CHICAGO RUNNING AND SPECIAL EVENTS MANAGEMENT, INC.
By: , HENRY R. ZEMOLA, CEO
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