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Home My WebLink About08/13/04AGENDA ADJOURNED REGULAR MEETING HERMOSA BEACH CITY COUNCIL Friday, August 13, 2004, 6:00 p.m. - Council Chambers, City Hall 1315 Valley Drive MAYOR CITY CLERK Art Yoon Elaine Doerfling MAYOR PRO TEM CITY TREASURER J. R. Reviczky John M. Workman COUNCIL MEMBERS CITY MANAGER Sam Y. Edgerton Stephen R. Burrell Michael Keegan CITY ATTORNEY Peter Tucker Michael Jenkins CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL PUBLIC PARTICIPATION 7. MISCELLANEOUS ITEMS AND REPORTS b. CONSIDERATION OF A REQUEST FROM IMG TO PRODUCE AN EVENING CONCERT ON THE BEACH ON THURSDAY, SEPTEMBER 23, 2004, FEATURING SHERYL CROW. RECOMMENDATION: Approve the request. ADJOURNMENT 1 r1 Honorable Mayor and Members of August 11, 2004 Adjourned Meeting of The Hermosa Beach City Council August 13, 2004 2004 IMG CONCERT ON THE BEACH: SHERYL CROW Recommendation It is recommended that the City Council approve the request from IMG to produce an evening concert on the beach, Thursday, September 23rd, 2004, featuring Sheryl Crow. Summary The Community Resources Department received a special event application from IMG, the company responsible for the production of Beach Bash, to produce a concert on the beach that would feature Sheryl Crow. The verbal request was received Thursday, August 6, 2004, after the Council agenda had been prepared. The City event application and $500 application fee were received Friday, August 6, 2004. An interdepartmental operations meeting was held Tuesday, August 10, 2004 to assess production feasibility and safety concerns. Per Council direction, this special event request was adjourned from the regular meeting of August 10, 2004 to Friday, August 1,3, 2004 at 6:00 p.m. ENTERTAINMENT VENUE Opening Act 6:00-6:45PM TBD Remarks 6:55-7:04PM First Support Act 7:05-7:55PM American Express Remark 8:11-8:19PM Sheryl Crow plus guest performers 8:20-10:OOPM Fireworks Display 10:01-10:04PM Show Ends 10:05PM Event capacity is determined to be 10,000 spectators situated on the sand (no bleachers) in six (6) designated quadrants situated on the north side of the Pier (Attachment A). Each quadrant measures 120' X 200' totaling 24,000 sq. ft per section. Open area capacity is typically set at 1 person per 7 sq. ft. Should more than the anticipated crowds of 10,000 arrive; there is safe seating capacity for 20,000 within the grids as shown on Attachment A. A 6' perimeter fence will control access to the venue site with secured entrances on both east and west sides. Other structural components include a stage, media deck, and elevated seating for a VIP area: Per coastal commission policy, IMG cannot charge admission to the proposed event, but may sell or designate preferred seating (VIP) for up to 24% of the total amount of seating capacity. More than 75% of the seating capacity shall be available free of charge for general public admission. The event contract (Attachment B) stipulates that a minimum of sixty (60) private security guards, one (1) Police Sergeant, eight (8) Police Officers, and two (2) Fire/Paramedic Officers are assigned to the event for security purposes. Fiscal Impact: • $25,452 Estimated. Permit Fees (Attachment C) $74,548 Charitable Donation toward youth/family orientated City programs and /or facility utilized by youth populations The production schedule (Attachment D) details equipment load -in procedures beginning Thursday, September 16th with vehicles crossing the Strand for two consecutive days. Truck movement will discontinue over the course of the weekend and resume Monday, September .20th. All load -in and teardown proceedings will be implemented between the hours of 8:00AM and 8:00PM. The American Express media outreach will -be limited to local markets. Banner, print and radio marketing plans are outlined in Attachments E and F. Attachments: A. Venue Site Plan B. Commercial Event Contract C. Fiscal Impact Detail D. Production Schedule E. Street Banner Design F. Marketing Plan Respectfully Submitted, Lisa Lynn Community Resources Department Concur, rt rr A 0 rr American Express Presents The Blue Beach Hermosa Beach, CA Beach House Parking Structure Beach Drive Beach House NEIA.) LA Pe - Gem ER. [Vp0[313 Ai. L=I I U Beach Drive The Strand em a siE FOH -er7 N31a! • In r Ea 711 d�A Pier Plaza �D I rz c.crse, y p3W , c 3? 3 Life Guard 'Tower Bathrooms INTERNATIONAL MANAGEMENT GROUP CITY OF HERMOSA BEACH COMMERCIAL BEACH EVENT CONTRACT This contract is entered into on August 13, 2004, at Hermosa Beach, California by and between the INTERNATIONAL MANAGEMENT GROUP (IMG) and the CITY OF HERMOSA BEACH (CITY) with regards to the IMG — Sheryl Crow concert produced by MOMENTUM and sponsored by American Express on September 23, 2004. FEES Permit fee shall be $3,830 per day, plus set up/tear down fee of $200 per day and other CITY fees as required. The $500 application deposit will be applied toward the permit fee if the event is approved. All predetermined costs/fees shall be paid ten (10) days prior to the event. All unanticipated costs incurred by CITY on behalf of the tournament shall be paid within fifteen (15) days of receiving an invoice from CITY. LOCATION ❑ On Beach North side of the Pier ❑ Lot B for operations compound ❑ Tournament operations and staging are subject to change if necessary SECURITY IMG shall provide no less than sixty (60) unarmed security officers. Said officers shall wear identifiable uniforms that indicate a separate identity from other tournament staff. A lead security officer will be required as liaison to Sergeant on duty. A pre -event briefing with the Hermosa Beach Police Department will be required. The private security staff shall be responsible for informing spectators of CITY'S alcohol ordinance. Security staff shall be required to check personal baggage for weapons and alcohol. CITY shall provide Officers for the event as follows: One (1) Sergeant and Eight (8) Officers each day of the event, or as many Officers as deemed necessary by the Police Chief. CITY shall provide Fire/Paramedic personnel for the event as follows: Two (2) Fire/Paramedic each day of the event, or as many Fire/Paramedic deemed necessary by the Fire Chief. Cost of Officers and Fire/Paramedic personnel shall be assumed by IMG. SET-UP • Perimeter fencing shall be erected on the beach to form a construction zone prior to load -in of any equipment. • Temporary fencing shall be erected to surround Parking Lot B for complete closure during load -in, load -out, and event implementation. 1 Attachment B 1 • All event personnel and construction crewmembers shall wear orange safety vest or orange t - shirt at all time during set-up and teardown. Operations shall cease if procedure is not adhered to. • All vehicles entering and exiting the Strand shall have orange -vested crewmember in front and behind each vehicle while it is in motion. • Off-loading of equipment from the Strand requires closure to pedestrian traffic. Flagman shall redirect to Beach Drive. EVENT OPERATION • The venue will not open until the fire inspection has passed and engineer has signed off on inspection sheet. • IMG is responsible for securing site and disallowing entrance to the public until inspection has passed. • Event operation radios shall be available to Community Resources Department staff and City safety personnel. • Fire works display shall require separate pyrotechnic permit and approval from the Hermosa Beach Fire Department. CLEAN-UP IMG shall use a professional maintenance service to clean the following areas: • The Beach and Strand, (impacted area) • Parking Lot B The maintenance service shall be responsible for hauling the trash outside the CITY following the event. IMG shall provide additional trash receptacles at the following locations: • Beach (impacted area) • Strand (impacted area) • And, additional trash receptacles as CITY requires. IMG shall use Consolidated Waste to provide: One (1) 30 -yard roll -off trash bin within the operations compound of Lot B and fifty (50) portable toilets within the venue site. LOS ANGELES COUNTY DEPARTMENT OF BEACHES AND HARBORS SERVICES CITY shall make any necessary contacts on behalf of the event with the Los Angeles County Department of Beaches and Harbors. IMG shall assume all costs for any additional lifeguards day of event if required by Los Angeles County Lifeguards. If IMG desires any County services, they must process their request through CITY. Any costs for County services will be borne by IMG. INSURANCE 2 • • At least ten (10) days prior to the event, IMG shall provide CITY a Certificate of Insurance providing personal injury and property damage liability insurance naming CITY, and County of Los Angeles, their officers, employees and agents as additional insured with a minimum coverage of $2 million combined single limit coverage with $5 million in excess liability. Insurance is to be placed with insurers with a current AM Best's rating of no less than A:VII. Said insurance shall not be canceled or altered without 30 days notice in writing to CITY'and County. IMG insurers shall be primarily responsible for any and all liability resulting or arising from the performance of the contract and CITY and County and their insurers shall not be required to contribute. For insurance purposes, the event area shall be defined to include any and all areas occupied or affected by the event. IMG agrees to defend, indemnify, and hold CITY and County of Los Angeles harmless from and against any and all liability and expense, including defense costs and legal fees, caused by the negligent or wrongful act or omission of IMG, its agents, officers and employees, including, but not limited to, personal injury, bodily injury, death and property damage. ADVERTISING IMG shall be required to make announcements informing spectators of CITY'S alcoholic beverage ordinance as deemed necessary by Hermosa Beach Police. Signage regarding CITY'S alcohol ordinance shall be required by IMG. CITY staff shall determine criteria for size, wording and locations for postings. All sponsor signs, props, product facsimiles, etc. deemed necessary by IMG to identify the event, shall be approved as to location and content by CITY. CITY will not unnecessarily deny said approval and will not curtail certain constitutional rights of IMG. CITY shall permit two (2) street banners. CITY shall permit thirty-eight (38) light pole banners divided for display on the Stand, Pier Avenue, and Hermosa Avenue. Cost of installation shall be the responsibility of IMG. PARKING IMG shall be required to post temporary "No Parking" signs in Lot B 24-72 hours in advance of event and repost accordingly. IMG shall be required to post peripheral signage to clearly identify and direct where there is free parking. CITY shall approve directional signs and advertisements in advance. IMG shall provide a shuttle bus service from major satellite point(s) on the outskirts of or outside of CITY. Information regarding shuttle bus service shall be included in all event advertisements. At no time may IMG block emergency vehicle access. Parking privileges may be revoked at anytime by CITY. ADDITIONAL PROVISIONS/RESPONSIBILITIES OF CITY CITY shall allow IMG the opportunity to sell official IMG event concession items pursuant to certain conditions: 3 • • • No food or beverage concessions shall be permitted on the Beach or in the Pier Plaza area, • All concession items must be approved by CITY prior to event. ADDITIONAL PROVISIONS/RESPONSIBILITIES OF IMG IMG shall designate more than 75% of the seating capacity free of charge for general public admission. IMG will be required to obtain an amplification permit from CITY. IMG will be solely responsible for event management. IMG shall designate area for spectators to store alcoholic beverages. IMG shall maintain public access openings on the Strand Wall (Pier). IMG will abide by any additional policies or appropriate fees as established by CITY. IMG shall be responsible for all equipment, sound system and personnel necessary for conducting said event. IMG shall set up/tear down between the hours of 8:00 a.m. and 10:00 p.m. on scheduled days. CITY RESERVES THE RIGHT TO AMEND AND/OR TERMINATE THIS CONTRACT AT ANY TIME. CITY OF HERMOSA BEACH Mayor Date APPROVED AS TO FORM City Attorney Date DEPARTMENT OF COMMUNITY RESOURCES Director Date INTERNATIONAL MANAGEMENT GROUP Director of Operations Date ATTEST City Clerk Date • Estimated Fees IMG 2004 Permit Fee $3,830 Set Up / Tear Down $1,800 Police $6,210 Fire/Paramedic $2,070 C/R Staff $1,200 Public Works $1,950 Film & Location $1,277 Business License $298 Banner Fees $472 Parking $6,800 Sound Permit $45 Total $25,952 Less deposit ($500) Total $25,452 Charitable Donation $74,548 Fiscal Impact $100,000 Attachment C _ IATAlP *kW . ERM.QSAIREAGHILCAMER EMBER' 23420.04:_ ,. , . .. ., r .1 ,,,,,, : y " V' ` <` : Y .PRODUCTION SCHEDULE. . ''::,1', ' . . Momentum 161 Sixth Avenue New York, NY 10013 Laura Loughlin 212.236.4030 Liam Lynch 212.206.4033 VENUE HERMOSA BEACH , CA PRODUCTION OFFICE TEL: tbd FAX: tbd Ben Bourgeois Productions Ben Bourgeois 323.960.0600 Paul Marks 323.960.0600 Event Resources 1776 Broadway New York, NY 10019 David Stallbaumer 212.246.6044 x15 Tanya Greenblatt 212.246.6044 x14 Paul Boschi 212.246.6044 x13 1.0-4W(!'''.. ...:P ratrieetaW e ' M1 ., ,' - - �%'ri7l'F~ 'W4,Z's3_�iL�'r a.. i�r:.�7e;^iYP�"'�r :'its�¢:gf��. 8:00AM - 8:00PM DRIVE OFFICE TRAILERS AND TENT TRUCKS ONTO PATH DELIVER FORKLIFTS (8) DELIVER GENERATORS DELIVER SITE FACILITIES - FENCING, BARRICADE, ETC. BALANCE OF ABOVE, SITE, FORKS, GOLF CARTS, PLYWOOD, TOILETS DELIVER BAND AREA TENTS/ TRAILERS VENUE DRIVES OPEN TO PUBLIC SETUP OFFICE TRAILERS PARK AND INSTALL SITE POWER CATERING SETS UP CRAFT SERVICE/KITCHENS DROP PRODUCTION PORTAJOHNS CONTINUE SITE PREP SITE CREW PLYWOOD ROADS FINISH PRODUCTION COMPOUND BUILD BAND TENTS UNLOAD SOME STEEL STAGE ON PATHWAY BY WORKSHOPS UNLOAD STEEL TRUCKS; STAGING BASE OUT MATERIALS 411,42MaititPAUENNE krea.• 4 x, , 8:00AM 8:00PM VENUE CLOSE PATH AROUND OVAL FOR DURATION BASE OUT STAGE, BALLAST INSTALL, INSTALL SITE POWER CONTINUE STAGE BUILD ASSEMBLE TOWERS START FILLING BALLAST TANKS CONTINUE STAGE BUILD MOVE TOWERS UP TO STAGE UNLOAD STEEL TRUCKS; STAGING, CONTINUE FILL BALLAST TANKS 9/18/2004'::,:'WORK`TOBE;DONEL1NItENCLQSED ABEAM,,Oz7RUCKMOVEMEN: ',t�','''4 I } ;` se,,:w ---1- ` .. : 8:00AM - 8:00PM • START VIP AREA TENT LAYOUT AND BUILD CONTINUE STAGE BUILD/ PREP FOR CRANE DRIVE CRANE INTO POSITION CRANE TOWERS FOR MAIN STAGE CONTINUE ROOF AND PROJECTION RIGGING FLY ROOF BUILD DELAY STRUCTURES PREP SYSTEMS FINISH DELAY STRUCTURES/ MIX TOWER MOVE LIGHTING/ SPOTS Attachment D 1 of 3 Last updated: 8/11/2004 8:25 PM 4,192,2 0.4.t; ;, O tF< TO, BE=DONEilNENCEOSELP FAINO5RUCK4.MOYEMENT)-4°.LI-4,:, ;;,Z •:::4 8:OOAM - 8:OOPM CONTINUE VIP LOAD -IN DELIVER SHOW AND TV GENERATORS TO PARKING LOT CONTINUE STAGE BUILD INSTALL OVER ROOF SCREEN STRUCTURES/ PROJECTOR RIGGING CONTINUE ROOF AND PROJECTION RIGGING FLY ROOF BUILD DELAY STRUCTURES PREP SYSTEMS FINISH DELAY STRUCTURES/ MIX TOWER MOVE LIGHTING/ SPOTS 20.Se 'a s''' 4, ,. �. , 8:OOAM - 8:OOPM CONTINUE STAGE BUILD - UNDERSTAGE, RAMPS, STAIRS, WEATHERPROOFING, ETC. INSTALL LIGHTING ARCHITECTURAL LIGHTING ON STAGE INSTALL SCENIC ON MAIN STAGE INSTALL AV/ DECOR IN VIP VIDEO RIGGING - LEDS PROJECTION INSTALU SCREENS OVER ROOF CONTINUE BUILD ROLLING LOADING DOCKS CONTINUE LIGHTING AND VIDEO ON STAGE UNLOAD ARTIST PRODUCTION TRUCKS CONTINUE DELAY STRUCTURES _ 1,111 8:OOAM - 8:OOPM PARK AND POWER VIDEO TRUCKS TOUR STAGE PRODUCTION LOAD IN INSTALL DELAY VIDEO AND AUDIO, FOH LIGHTING AND AUDIO CONTROL POSITIONS BUILD ENTRANCE GATES, PENS AND CHUTES COMPLETE VIP AREA LOAD IN BUILD MEDIA BLEACHERS PARK AND POWER RECORDING TRUCKS/ FACILITIES CABLE CAMERA AND CRANE POSITIONS SET UP ARTIST PRODUCTION, AUDIO/STAGE/LIGHTINGNIDEO INSTALL WIP FACILITIES/ TENTS VIP CATERING DELIVERIES PORTA JOHNS/ MEDICAL TENTS INSTALLED ARTIST TECH CHECK CAMERA TEST AS POSSIBLE END DAY FOR AUDIO/ VIDEO/ STAGE LIGHTING/ VIDEO PROGRAMMING OVERNIGHT 2 of 3 Last updated: 8/11/2004 8:25 PM 3 of 3 Last updated: 8/11/2004 8:25 PM 8:OOAM - 8:OOPM FINAL SITE PREPARATIONS BAND STAGE TEST AND LOAD IN CONTINUES VIP / WIP INSTALL CONTINUES PAID VIP INSTALL TEST ALL SYSTEMS, TIME ALIGN AUDIO DELAYS PARK AND POWER BAND TRAILERS AND ADDITIONAL TENT TRAILERS CONTINUE PORTA JOHNS, AUDIENCE CHUTES, BARRICADE ETC. POSITION TOWER LIGHTS AROUND SITE AND ENTRANCE BUILD ENTRANCE ARCHES CAMERA BLOCKING END DAY FOR ALL EXCEPT PROGRAMMERS OVERNIGHT PROGRAMMING CALL 8:OOAM SECURITY AT STREET ENTRANCES LAPD CLOSE GATES AS POSSIBLE THROUGH MORNING DRIVES SHUT DOWN LATER AS PER PARKS 11:OOAM AUDIpNCE SECURITY IN PLACE AT ENTRY GATES 3:OOPM DOORS OPEN PRE SHOW PROGRAMMING BEGINS 6:OOPM VIP HOSPITALITY AREA OPENS 6:20PM HOST/ PRE SHOW INTRO 6:30PM OPENING ACT (40 MIN) 7:10PM CHANGEOVER (20 MIN) 7:30PM- 10:OOPM SHOW 10:OOPM END SHOW STAGEHANDS LOAD OUT 11:OOPM PRODUCTION LOAD OUT 24: ', R .fe 1.. 4, - ,' {.moi,: r ' , Ir '• 'W- "y, 37„. _ -,_, o' ”' • .4 `',., wa'>' w� '� 8:OOAM - 8:OOPM VIP FACILITIES LOAD OUT BAND COMPOUND LOAD OUT DELAY SYSTEMS LOAD OUT AUDIENCE ENTRY GATES LOAD OUT STEEL LOAD OUT TENTS LOAD OUT SITE LIGHTING LOAD OUT PORTA JOHNS/ FENCING LOAD OUT LOAD STEEL TRUCKS 25 -Sep ° _ r f � . •,-- p. kq S` y ' ' ," m 8:OOAM - 8:OOPM FINISH SITE FACILITIES LOAD OUT CONTINUE STAGE LOAD OUT - STACK AND RACK STEEL WALK THROUGH WITH CITY PRIOR TO SITE HANDOVER 3 of 3 Last updated: 8/11/2004 8:25 PM ,_M=M=M Addendum A: Creative Elements ,,, BLUE FRO f7I AMERICAN EXPRESS PRESENTS SHERY / ARDS Waif (iv e alnet each .cc; • •;.. BLUE zj F"MUSIC 3 4uawg0Pq.gv Local Surround Media Local Radio • Event announcement phase (w/o 8/30) • Ticket giveaways (9/3-9/22, dark during 9/11 weekend) • For VIP reserved seating area - Radio remotes (remotes on select days with street teams) - On -air giveaways - Drive to web • Event Coverage (9/23-9/26) - Radio stations will provide coverage of the show with on -air live read reports • Lead Station: KYSR-FM "Star 98.7" - Secondary Stations • KMS -FM "Kiss 102.7" • KBIG-FM "KBIG 104.3" - 75 GRPs/150 spots per week across stations • Amex branded radio with :10sec event tag - 75-150 promo spots (DJ live and recorded) per week for ticket give-aways FORWARD ► Local Surround Media Local Print • LA Weekly - 3 insertions - Week of 9/2 - Week of 9/9 - Week of 9/16 • South Bay • Beach Reporter • Easy Reader • Daily Breeze Weekof9/2 Week of 9/9 Week of 9/16 • LA Times (Entertainment Section) - 4 insertions Tuesday, 8/31 Thursday, 9/2 Sunday, 9/5 - Wednesday, 9/15 FORWARD ► 2 Online: Experience • Website experience will support 360 local communications by providing an outlet for all event details • Online media to generate awareness of the event/offers/ticketing information and drive to www.americanexpress.com/blueLA • Website will be live with event information Tues. August 31 - Thurs. September 23rd LA Local Online Media • BLUE -_ 'MUSIC THE CHI AGO BIIUt sessIONS AR COMING r" www.americanexpress.com/bluela cy� TUNE IN TO BLUE LOS ANNULS r MUSIC ACCESS. LOUD AND CLEAR •N:": � C'. E.H. • STING TOUR • D.r.S Allow I0111 -1M4 SE)'. Ohm• Rpm. Comore en Argue IL Ez From Are C.r6w*nom can whalldr.la AMA it r. dime osl•rrrn.1•MurI., =and Si. s..nw s.N. vwy. Wm,. ll. Tran -ma. And Evelyn "OMrn...rr' 16. M IM Gra* 11•••••r. Br. also Mb you adu.NS mons* am ill.?... n. Fra -canon W party. TIGAMa Mor aW 1. Si. Mnarat puMle en Amor Ii OUFIIOQpa rammed IMO �1 MWWaa I. parp�alM MA MAMA KOST- WM aelc.Y Who 1. flier Mode hwl....a JNp1. A5rkan Eq.ao.nd Tama... Cambay Few Isms pas•.• b thew enas►aiidoarO N IM Wa.lrreod Ammer and a. W•••.ad VUInM 1MaMrbrOr�5. WANK mono...i11 NIM CYl.nr.alb.. Paw .w Bow Aden nor the ep 10Vp amelAnd l 00 may lucky C.rbnar....,M. a1YndapMrw UCLA Man.nr Mlwar 1 -AO Wolmeed. Female,* • donee day. la FM. SOL K!U-F61.. KFFA1 . q ,.5w,. KIS-1416. FM. KOLD-FM and KYSR-FM from Juno 21 bJeN 6 . you mot M a APPLY NOW a _ ROCKSTARR.CKAGE I WURMkN MUSIC GKCSEEL�� ryryl r ti . • Non -Traditional LA Local Print Media Radio FORWARD w... 3 s s The Hermosa Beach City Council public meeting Friday, Aug. 13, 2004, regarding a proposal for a concert on Sept. 23, 2004. Assuming the concert is not cordoned off and fenced in some way to limit the physical size of the venue. 1. How large could the numbers of people attending the concert be? 2. Will it be more difficult to keep alcohol, drugs and weapons from entering the concert area? 3. How many HPBD officers, do you feel will be needed for this type of unlimited concert venue plan? 4. Is it normal to have one police officer for every 200 people attending a rock concert? 5. Can it be assumed that public rights of way will be blocked during the concert? Such as The Strand or any walk street near the concert area. 6. Will a fireworks display cause additional security problems for the HBPD? 7. What is the insurance coverage provided by the promoter? Assuming the concert is fenced and tickets are pre -sold at a price of $10.00 to pay for security costs and to limit the size and number of people at the concert. 1. What is a reasonable size for this type of rock concert in Hermosa Beach? 2. Will it be easier to control alcohol, drugs and weapons, if there are security checks at the entry and exit points of the concert venue? 3. How many HBPD officers do you feel will be needed for this type of fenced and limited concert venue? 4. Will private security guards be better used at the entry and exit points of the venue for security searches? 5. Compare the security problems of a strictly limited number of tickets are sold, in the range of 5,000 tickets, compared to an unlimited concert size. 6. Even with the concert ending at 10 pm and the fireworks to follow. How many HBPD officers will be needed until 2 am that night? 7. What is the liability coverage that is provided the City of Hermosa Beach? If the concert does take place, I hope the Hermosa Beach City Council makes decisions to allow for a, Safe and Secure Concert, instead just a Free Concert. Al Benson August 27, 2004 Lisa Lynn Community Resource Department City of Hermosa Dear Lisa: It is with deep regret that I inform you that American Express has decided not to proceed with the concert on Hermosa Beach on September 23, 2004. We greatly appreciate the City of Hermosa Beach's support of the project, and value the extensive efforts of individuals like you to help bring this event to fruition. Further, we fully realize the inconvenience of postponing community activities and projects in order to accommodate our event, and are sensitive to the disappointment of the community that the event will not go on as intended. Our plans have changed due to a shift in a number of key business priorities for Fall 2004, including new projects that require us to reallocate our marketing resources. However, American Express will honor its financial commitment to the Hermosa Beach community, and will make a donation in the amount of $75,000 to help fund charitable projects of the city's choice. American Express has a strong commitment to the Los Angeles area, and we expect to continue to host great programs there in the future for the public. Again, we regret the inconvenience and disappointment our decision may have caused you. If additional questions or issues arise, please contact me at 212-640-0549, or continue working through Momentum. Sincerely, Nancy Smith Vice President, Global Media and Sponsorship American Express [via email] cc: Stephen Burrell momentum Dear Lisa - It is with deep disappointment and regret that on behalf of American Express we had to cancel the Concert on Hermosa Beach scheduled for September 23, 2004. All of us at Momentum share in your disappointment as we partnered with you to attempt to make great things happen. We were incredibly impressed by the dedication, work and graciousness you extended to us. Unfortunately, American Express made a very difficult decision that was not reached lightly and all parties involved appreciate the tremendous task that you personally took on and the City embraced on our behalf. We hope that in the future we will get past this unfortunate incident and leave the door open for other potential opportunities that can benefit the community. Please accept our sincerest apologies and feel free to contact me directly with any questions -(212.367.4513). Sincerely, Chris Weil Chairman/CEO, Momentum Worldwide CHRIS WEIL Nr:,;S .ark