55575.38285\45328566.1
CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: APPROVE EXHIBIT A-1 (LOCAL BRANDS) AND EXHIBIT A-2 (COMMUNITY NON-PROFIT USE) TO THE PALM SPRINGS
CONVENTION CENTER OPERATION AND MANAGEMENT
AGREEMENT NO. 25P206
FROM: Scott C. Stiles, City Manager
BY: City Attorney’s Office
SUMMARY:
The new Palm Springs Convention Center (PSCC) Contract Services Agreement 26P118 (F&B) was executed on July 1, 2026 with Ovations Fanfare L.P. dba OVG Hospitality (OVGH, sometimes Contractor). The City Council requested two exhibits be brought back with additional detail. This report presents the two exhibits to that contract and seeks approval of the policies therein.
RECOMMENDATIONS:
1) Approve Exhibit A-1 to the PSCC CSA Agreement – Local Brands – found as Attachment A to this report;
2) Approve Exhibit A-2 to the PSCC CSA Agreement – Community Non-Profit Use Policy – found as Attachment B to this report.
BUSINESS PRINCIPAL DISCLOSURE:
None required.
BACKGROUND:
Over the past several months, the City’s PSCC F&B Contractor has been busy with transitioning F&B services from the Savoury’s Good Earth Cuisine, Inc., to the OVGH team. At its June 30, 2026 meeting, where Council approved the F&B Agreement (the “Agreement”), staff was directed to further develop two contract exhibits based on input received at that meeting. This report seeks approval of those two exhibits, which include the local brands (Agreement Exhibit A-1 – See Attachment A) and the use of the PSCC by community non-profits (Agreement Exhibit A-2 – See Attachment B). Both of these exhibits are offered in more detail below.
City Council Staff Report
August 26, 2026 -- Page 2
Approved Exhibit A-1 (Local Brands) and Exhibit A-2 (Community Non-Profit Use) to the Palm Springs Convention Center Operation and Management Agreement No. 25P206 STAFF ANALYSIS:
Exhibit A-1 – Local Brands
At its June 30, 2026 meeting of the City Council, City staff was directed to negotiate Exhibit A-1 further with OVGH and to develop a Local Brand obligation. Updated Exhibit A-1 is included as Attachment A, for Council’s consideration.
In short, OVGH is required to spend at least seven percent (7%) of total food & beverage purchases through greater Coachella valley vendors/suppliers/producers. If OVGH does not hit the required spend, OVGH will catch up the required local spend in the following year. If OVGH hasn't cured the deficiency by the end of the cure period then OVGH will pay that amount to the City in the amount of the final shortfall. Seven percent on the Local Brands is based on historical purchases at Acrisure Arena over the past three years.
Staff recommends approval of Exhibit A-1.
Exhibit A-2 – Community Non-Profit Use of PSCC
At its June 30, 2026 meeting of the City Council, staff was directed to develop Exhibit A- 2 with more definition and present the updates to the Council for approval. Updated Exhibit A-2 is included as Attachment B for Council’s consideration.
In short, any event F&B order $750 or less can be brought in from an outside vendor with no buyout due to OVGH. For events over $750, qualified groups would receive a discount equal to the current administrative fee published on menus, currently set at 24%.
Staff recommends approval of Exhibit A-2.
ENVIRONMENTAL ASSESSMENT:
The proposed approval of Attachments A and B (Exhibits A-1 & A-2) to the previously approved Agreement for F&B of the Palm Springs Convention Center has been reviewed in accordance with the California Environmental Quality Act (CEQA). This approval is categorically exempt from further review under the State CEQA Guidelines, Section 15301 Class 1 (Existing Facilities) and there is no substantial evidence demonstrating that an exception to a categorical exemption pursuant to CEQA Guidelines, Section 15300.2 applies.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports City Council priority for Economic Development to support a vibrant economy, including tourism.
FISCAL IMPACT:
N/A.
City Council Staff Report
August 26, 2026 -- Page 3
Approved Exhibit A-1 (Local Brands) and Exhibit A-2 (Community Non-Profit Use) to the Palm Springs Convention Center Operation and Management Agreement No. 25P206 SUMMARY:
This report summarizes the various follow-up items required to complete the F&B Contract between City and OVGH.
REVIEWED BY:
City Attorney: Jeffrey Ballinger
City Manager: Scott Stiles
ATTACHMENTS:
A. Exhibit A-1
B. Exhibit A-2