FEDERAL ELECTION COMMISSION

\\ --\SHI"CTON 0 C 20463

November 21, 1989

MEMORANDUM

TO:

FROM:

SUBJECT:

FRED E!LJ1_~D

PRESS OFFICER

ROBERT J. COSTA '- -

ASSISTANT STAFF D1 ECTOR

AUDIT DIVISION

PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON THE 1988

DEMOCRATIC NATIONAL CONVENTION COMMITTEE, INC.

o

Attached please find a copy of the Final Audit Report on

the 1988 Democratic National Convention Committee, Inc., which

was approved by the Commission on November 15, 1989.

Informational copies of the report have been received by

all parties involved and the report may be released to the

public.

Attachment as stated

cc: Office of General Counsel

Office of Public Disclosure

Reports Analysis Division

FEe Library
D~C/090l89

FEDERAL ELECTION COMMISSION

\\ >\SHI"'.CTO:"... 0 C ~04b3

FINAL AUDIT REPORT

ON THE

1988 DEMOCRATIC ~ATIONAL CONVENTION COMMITTEE, INC.

I.. Background

A. Overview

This report is based On an audit of the 1988 Democratic

National Convention Committee, Inc. ("the Committee"), to

determine whether there has been compliance with the provisions

of the Federal Election Campaign Act of 1971, as amended ("t~e

Act"). The audit was conducted pursuant to Section 9008(g) of

Title 26 of the United States Code which directs the Commission

to conduct an examination and audit of the payments for

presidential nominating conventions no later than December 31 of

the calendar year in which the presidential nominating convention

involved is held.

The Committee registered with the Federal Election

Commission on June 25, 1936, as the national convention committee

of the Democratic Partv. The Committee maintains its

headquarters in Washington, D.C. ~he audit covered the period

June 24, 1986, the earliest date of financial activity by the

Committee, through September 30, 1988, the final coverage date of

the nost recent report filed at the time of t~e audit. During

the period, the Committee reported an opening cash balance of SO,

total receipts of $9,739,194.45, ~otal jisbursements of

$9,187,778.81 and 3 closing cas~ balance ~~ September 30, :988 of

$551,415.E4. In 3cdition, certain financial activity was

rev i ewed t r 0 ugh Dec em be r 1 4, 19 8 g ..

T his r e PJ r tis ba sed 0 ncoc lLll e!1 t sand W0 r kin9 pa pe r s

whic~ support eac~ of its factual statements. ~hey form part of

the :ecord upon ~hich the Commission based its decisions on the

matters :n the report and Here avai~able to Commissioners and

appropriate staff for review.

9. ~ev Personnel

The ~reasurer ~or t~e period a~d:ted was ~s. S~aron

? rat t Qi xon.

C. Scone

The audit included tests such as verificat:on of total

reported receipts, cisbursements and individual transactions;
2

review of required supporting documentation; analysis of

Committee debts and obligations; review of expenditure

limitations and such other audit procedures as deemed necessary

under the circumstances.

II. Findings and Recommendationsl /

A. Discounts By Retail Businesses

Section 9008. 7 (c) (1) (i) of Ti tIe 11 of the Code of

Federal Regulations states that retail businesses may sell,

lease, or rent their products, materials, services or space to

the national committee with respect to a presidential nominating

convention at reduced or discounted rates, provided that such

reductions are in the ordinary course of business. For purposes

of this section, a bank shall not be considered a retail

business.

During the review of contracts negotiated by the

Committee with the two co-headquarter hotels, the Atlanta

Marriott Marquis and the Hyatt Regency Atlanta, the Audit staff

noted the following matters:

(1) The Atlanta Marriott Marquis provided to the

Committee on a complimentary basis two hundred fifty (250) room

nights~/ to be used prior to the convention week, and one

complimentary room for each fifty (50) rooms utilized from July 1

to July 25, 1988. In addition, the hotel provided, on a

complimentary basis, a total of fifty (50) sleeping rooms/offices

(Headquarter Offices) for varying periods, as well as meeting

rooms, banquet areas, common areas, ballrooms and exhibitor's

space during the convention week. (Attachment I)

(2) The Hyatt Regency Atlanta provided the Committee

3a0 compi imentary room ~:ghts~/ to be assigned at t~e sole

discretion of t~e Committee before Julv 14, 1988, a nortion of

its meeting space prior to the convention weeK, and all of its

meeti:1g space during t~e convention week. (Attachme:1t II)

In the Interim Audit Report, the Committee was

requested to provide evidence that the 3yatt and Marriott ~ote1s

have an established practice of providing free rooms and services

on the same scale to non-political clients; t~at the value of the

1./ The matters addressed in this rePJrt relate solely to t::e

activity of the 1988 Democratic ~1ational Conve:rtion

Committee, I ;"lc . ~1 at t e r s rl 0 ted i:1 t he r e po r t () f the A ud i t

Division on The Atlanta '88 Committee, Inc. (Host Committee)

which effect t!1e 1988 Democratic ~:ational :onve:1tion

Committee, Inc., if any, will be addressed in an addendum to

this report.

~/ Both contracts defi:le a "~oom nig~tft as one night's use of a

single or double room with conversion factors provided for

suites, etc.
3

goods and services provided does not exceed the value of the

commercial benefit; that the value provided is in proportion to

the value provided in similar situations; and that the benefit

received is promotional and commercial rather than political.

(See Advisory Opinion 1988-25)

In response to the Interim Audit Report, the Democratic

National Convention Committee provided a statement by Arleigh

Greenblat, General Manager of the Democratic Party's 1988

National Nominating Convention.

Mr. Greenblat states that he has been working as a

consultant arranging conventions and similar large meetings for

corporations, trade associations and labor organizations for

approximately 18 years; that as part of his responsibilities in

assisting sponsoring organizations in making arrangements for

their conventions, he has negotiated the larger procurement

contracts with the principal vendors to such conventions

including contracts with the headquarters and other host hotels;

that he has worked closely with convention bureaus of the major

cities in North America and as a result, is quite familiar with

standard discounts, complimentary services, and other

prerequisites offered by convention bureaus and the hotel

industry in those cities.

Mr. Greenblat states that he was engaged by the

Democratic ~ational Convention and that he was ~esponsible for

advising senior Convention officers of the commercial

reasonableness of the terms offered by the various ~otels in

light of the standard practices i~ the industry. ~e explains

that it is typical in the industry for headquarters ~otels to

offer inducements in order to gain business. Included among the

inducements often offered are free rooms during t~e event period

(1 ~or eac~ 40 to 50 rooms ~eserved) de?endi~g upon t~e

ci~cumstances, 3 certain ~umber of ~~ee rooms for use by event

p13nning staff tefore the eve~t, compli~e~t3ry use of ~eeting

rooms, complimentary set-ups a:1d equipment a~ayage, etc. :'1r.

G~eenblat ~urt~er exnlains t~at t~e extent to w~ich such services

are offered on a complimentary basis depends on a w~ole range of

factors, including expected attendance, anticipated profit on

ot~er services offered, and t~e period of t~e year w~en t~e event

occurred, etc.

In closi~g, ~r. Greenblat states t~at in ~is opinion,

t~e negotiations o~ t~e agreeilients ~it~ t~e ~ead~uarters ~otels

"

.,.~r~.0"""\...-on C~"""'~od u.,-,~ .... rIun d

-'"•• a.l..:TI ,.. 'e::..... ..........:o..,~r~ 'j ...... h,

,-,as~::l ;- i"", ..' a .l...:l ~-e::l-i ...... ~o T" .• ~~T __ ';PJ.\..-3.l. i~' ... :1

t~e lndustry. In no event ~ere t~e co~pllmentary serVlces

a::crded by t~e ~otels greater t~an w~at woule have ~een expected

for a non-political convention of simila~ size and 2usiness

po ten t i a1 . (A t t a C :::-:1 en t I I I )

However, in order to resolve t~is :natter, t~e

Commission requested additional i~formation. In particular,

information from t~e host ::otels which addresses the following

points from the Interim Audit Report recoIT~endation:
4

1. Whether hotels have an established practice of

providing free rooms and services on the same scale to nonpolitical clients. This information should include examples.

2. Whether value of the goods and services provided

exceeded the value of the commercial benefit.

3. Whether value of the free goods and services provided

was in proportion to the value provided in similar situations.

Here again examples should be provided.

4. Whether benefits received by hotels was promotional and

commercial rather than political.

In response to the Commission's request for adcitional

information the Democratic National Convention Committee provi~€d

statements from t~e Atlanta Marriott Marquis and the Hyatt

Regency Atlanta respectively which address the points as stated

in the Interim Audit Report recommendation. gowever, it should

be noted that the respective hotels did not include with their

statements examples of similar situations with non political

clients, as requested in numbers 1 and 3 of the Commission's

request for additional information.

Mr. Leroy Neal, Director of Convention Service, Atlanta

Marriott ~arquis states in relevant part:

"1. ~he Marriott Marquis has a well established policy of

providing compli~entary guest rooms, ballrooms, banquet rooms and

co~~on space to groups holding large conventions in our hotel.

All such complimentary space made available to the Democratic

~ational Convention Committee, I~c. was made pursuant to this

policy and was consistent with t~e manner i~ whic~ all such

co~ve~tiQns are ~andled. !~e anou~t of compli~entary space given

a committee is aetermined ~y several factors i~cludi~g the size

of t~e groJps 3nd t~e estimated :~come to t~e ~otel:rom t~e

convention.

2. The co~~ercial benefit received ~y t~e Marriott Marquis

far e xc e e de d t e val ue 0 f t e corn p limen tar y s pac e pro vi de d toth e

committee.

3. '!'~e ~·!ar riot t ~!arqui s recei vee :10 ";>01 i ti cal" benef it i 1'1

cO:1nection ~it~ ~osting your ~ornxittee's co~ve:1tio:1. Any be:1efit

received by t~is ::otel f.-J3S pro~,ot:i():1al 3::0 lor commercial ::-1

:1 at ur e . n (A t t 3 C :--_il e n t I"'?, p. 2)

~r. ~ichae1 2accavo, Directar of Conve:1ticn Services, 3yatt

~egency Atlanta states i:1 relevant part:

"1. The ~yatt Regency Atlanta has a well established policy

of providi~g complimentary guest rooms and meeting space to

groups ~olding large conventions i:1 our ~otel. All such

complimentary space made available to t~e Democratic ~ational
."

5

Convention Committee, Inc. was made pursuant to this policy and

was consistent with the manner in which all such conventions are

handled. The amount of complimentary space given a committee is

determined by several factors including the size of the group and

the estimated income to the Hotel from the convention.

2. The Hyatt Regency Atlanta received no "political"

benefit in connection with hosting your Committee's convention.

Any benefit received by this Hotel was promotional and/or

commercial in nature." (Attachment IV, p.3)

The Audit staff, after having reviewed the Committee

response to the Interim Audit Report, copies of the two contracts

at issue, Mr. Greenblat's statement concerning his participation

with respect to these matters, and the additional information

provided by the Committee in statements from the host hotels, the

Atlanta Marriott Marquis and the Hyatt Regency Atlanta,

respectively, finds that the inducements and/or discounts at

issue appear to have been entered into by the parties in the

ordinary course of business as detailed at Section 9008.7

(c) (1) (i) Ti tIe 11 of the Code of Feder al Regulations.

Recommendation

The Audit staff recommends no further action in this matter •

..0 B. Unspent Portion of Fund Payment

Section 9008{h) of Title 26 of t~e United States Code

states, in part, that the Commission shall have the same

authority to require repayments from the national committee of a

majo~ party as it has with respect to repayTIents from any

eligible candidate under Section 9007 (l.)) •

In addition, 11 C.F.R. § 9008.10(e) (1) and (~) state

that i: a~y portion of t~e payment under 11 C.F.R. § 9008.3

remai~s u~s?ent after all convention expenses ~ave been paid,

that portio~ shall be returned to t~e Secretary of the Treasury~

the ~ational committee or convention committee shall make an

interim repa}~ent of unspent funds based on t~e financial

position of the committee as of the end of the sixth mont~

following the last day of the convention, allowing for a

reasonable a~ount as deter~ined bv the Commission to be ~ithhe~d

for ~na~t:cipated contingencies. ~IE, after written request by

the ~ational committee or convention com~ittee, ~~e Commission deter~i~es, upon review of evidence presented by either

com~ittee, that ~mounts refunded are needed to defray convention

expenses, t~e Commission shall cert::y suc~ amount for payment.

Finally, 11 C.F.R. § 9008 10(g) (1) and (2) state, in

part, that if the Commission determ nes that repayment is

required, it shall give written not fication of the amounts

required to be paid and the reasons therefor~ and the national
l

i

o

c

6

committee shall repay to the Secretary, within 90 days of the

notice, the amount of the repayment. Upon application submitted

by the national committee, the Commission may grant a 90 day

extension of the repayment period.

Our review of the Committee's financial position at the

close of business December 14, 1988 revealed that the unspent

portion of the fund payment totaled $64,389.70. The financial

position of the Committee is shown below:
7

Calculation of Unspent Portion of the Entitlement

of the 1988 Democratic National Convention

Committee, Inc. as of December 14, 1988

November 30, 1988 Adjusted Bank Balance

operating

Payroll

Sub-Total

Add:

Refunds received

After ~ovember 30, 1988

$ 215,888.82

5,033.45

$ 220,922.27

3, 722.37

Total Cash on Hand as of December 14, 1988 $224,644.64

",·0

Less:

---- Disbursements for

Convention Expenses

from December 1

to December 14, 1988

Estimated Winding Down Costs

as of December 14, 1988

Printing of Proceedings

Payroll

Accounts Payable and

Allowance for

Unanticipated

Contingencies

Offsets to Operating

Expendi tures

(Stale Qated Checks)

$ 58, 292 • 90

$ 47,119.00

20,100.00

2135,489.26

(i46. ~:!)

Total Disbursements & Winding Down Costs

Amount Repayable to u.s. ~reasury

:/ This figure contains esti~ates.

160,254.94

$ 64,389.70
~he interim audit report stated that absent a showing

to the contrary, the Audit staff would recommend that the

Commission make an initial determination that $64,389.70 in

unspent funds are repayable to the United States Treasury. The

Committee's response to the interim audit report did not address

the calculation of the amount of unspent funds.

Recommendation

The Audit staff recommends that the Commission make an

initial determination that $64,389.70 in unspent funds is

repayable to the u.s. Treasury pursuant to 26 USC § 9008(h) and

11 CFR § 9008.10 (e) •
1

•

••

ZXHIII1' .p.

CO-B'FSJ)Q'DARrERS HOTEL AGREEKENT

1981

• J)E:MOc:RATIC NATIONAL CONVENTION

ATTACHMENT 1

~s AGREEMENT i. entered into en September 17, lS87, ~y an~

. amon; ~. Atlanta Marriott Marquis (the "Hotel"), an~ the 1"988

De=ocra~ic National Convention Cc::itte., Inc., a District cf

Columbia non-profit corporation (the ~DNCC"). In cQnsi~erat1on

. ~f ~. =u~ual covenants hereinafter set forth, the parties hereto

a;re. as fellows:

J..

~he Hotel agrees to reserve 1,'00 quest roo:s

{hereinafter collectively referred to as the "Room Slock"),

inclu~in9 22 suites, to be un~er the exclusive contrcl of ONce

respecting the period July 16 to July 24, 1988 (hereinafter

referred to as the "Convention Wa.kW), to "be assi;ned to" quests

~y ~NCC at its sole ~i.creticn. On July 3, 1988, any portion cf

the Room Block t.hen unassigned by DNCC reverts to the Hotel. In

.d~ition, the Atlanta Marriett Marquis will reserve beginning --

~uly 1 through 3uly 6, 1988, be~rooms only, and beginning July

I through July 13, 1988, an additional be~roo:s for a total of

~. All roo~s will be reserve~ at the a;reed conventic~ rate.

-1-
."

~h. Atlanta Marriott Harqu1s i. plaased to confirm to the

~NCC the follovin; rates applicable ~o the room ~lock, which has

~e.n ••t .side. ••• rat•• will ftot hereafter be 1ncra.se4, and

will ~. available ~o all ulara de.i;n.~.4 by DNCC from ~uly 1, . .

1'88, ~o five (5) days atter Convention Week, consistent with the

mWDber of rooms ~lock.d.

11lI. SA'1'. St1H. HOI'. ~. WE!). '%'H'tJ • FRI.

7/1 '/2 .,/3 7/4 '/5 .,/6 7/7 . 7/1

ao CO '0 '0 1O '0 100 100

e~... ....... SOH.. MON • ~. • WED. -. -THO. FRI. SAT.

7/'1 '/10 7/11 '/12 7/13 7i14 '/15 ·'/16

J.OO 100 100 100 100 300 '00 1000

St7N. MON. TO'E. WED. THU. FRI. SAT. SON.

:) '/17 '/18 '/19 7/20 '/21 7/22 7/23 7/24

1300 1300 1300 1300 1300 100 600 300 :. ~""

I'.. MON.

?}25

::r 0

-·0 SIN~IZS •

• $105

DOTJBLES : $125

SOlTES •

• $295 ant! up

c ADOITIONAL PERSONS ·

• $ 20

"'- (above a;e 18)

- ~o (2) children up to age 18 may occupy the sa:e roo: as '- ,

,-... ~eir parents free of charge, when utilizing the existing bed

,-- Reservations must be acco:panied by ene (1) nights room ..,.. space.

deposit, which would be applied to the first or last n1;ht.

~posit will be refundable if reservation is cancelled up to 48

hours before 6:00PM en the date of scheduled arrival.

--Reservations received without deposits, 11'111 be held en •

• tan~-by basis YP to fourteen (14) days prior to arrival. If

~eposits are not received by this ti~e (14 days prior to

arriVAl), reservations will be cancelled.
~. Hotel has conf1rme4 t~ DNCC rates applicable ~o Roem

31ock, ftet of customary convention discounts and commissions.

Such rat•• will not hareaftar ~. increased, and will be available

~o all u.er. d••lgnate4 !)y ~. J)NCC frc= .7uly 1, 1"', ~o five

(5) day. aftar Convention W.ak•

•

2. meLle ina . ~. Hotal a;ra.s ~o res.rve the aa.tin; roc:s indicated en . -attached function information a;en4a (Hotel ~xhibit Ai be;ir",ing

~uly 1 throu;h July 15, 1'88, and all of its m••tin; rooms,

banquet areas, cc:=on areas, ballroo~s, 10th floer Skyline Level,

an4 .xhi~1torst space (hereinafter collectively referred to a~

~. -Public Space") for the exclusive control of ONce ~e;innin9

-- ~uly 16 through July 24, l1ee, to be assigned to users at the

8=la ~i.cretion of DNce. Space reserv.~ does not inclu~e the

restaurants and lounges locate~ en the Garden Level (GL).

en July 1, 1988, any portion of the ~lic Space then

~n&ssiqn.~ by DNce reverts to Hetel: provided ~, the Hotel

agrees to obtain the prier WTi~ten approval of DNCC as to any

ether user durin; Convention Week. ·~~.ther or not DNCC ;rants

such approval, neither DNCC nor Atlanta ••••h~ll be responsible

fer any ch&rqes associated with any portion of public space which

ao reverts back to the hotel.'

-- With the exceptions of Me~ia Space (as such tere i.

bereinafter below defined), and food and beve~age char;es, there

1. ~o be no charge to DNce, cr to users de~i9nated by DNCC, for

-3-
--

~.

7Ubl1c Space cr for furnishings, accessories, .oun~ an;in••r1n;,

sound systems, aicrcphon.s, labor, cartage or drayage r.qulre~ in

connection with the us. of ~11c Space.

:I. XEPIA SFAa

~. Botel aire.s to re••rve Its entire meetin; Cluster %V

(a•••ttach.~ Botel Exhibit A) of Public Space of the Hotal

(hereinafter referred ~o as the -Madia Space") for the exclusive

control of ONCe respecting the pericQ 3uly 1, 1'88, ~~ou;h an~

~nclu~ini 5 days after the last day of Conventicn Week, to ba

~\J ••sic;ned to users at the sel& CSiscret,1on of t>NCC. On ~ay 1,

~~ 1'88, any then unassi;n.~ portion of the Me~ia Space reverts to

J',. • Pu.blic Space. It 1s aqraet! that all charges inc:urre~ by the

Media will be bille~ ~ir.ctly to the specific corporation (me~ia)

·0

subject to approved ~illin;.

(j ~he Hotel will confir= to DNCC quaranteed rental rates to be

applicable to the Media Space, and charges for services provide~

~o users thereof, no later than January 15, 19B8. User of Media

Space will be required to deposit ene day's space rental, ~hich

deposit will be refundable in full up ~o thirty (30) ~ays in

.~vanc. cf arrival. (See Hotel Zxhibit -B" for rentals.)

cotreL1J:lJjqARX B09r..s

~h. Hotel will provide to ONce two hundred fifty (250)

co~pli:entary roo~ nights to be use~ prior to Conve~tion Week

(hereinafter referred t: as the "Co:pli:entary Roo:s") ever and

above the ene co:pli=entary room fer each fifty roo:s ~tilized,

-4-
. .

over the lengt.h of t.he Room Block t>a;innin; .1uly 1 through e1uly

25, 1188, ~o be a.s1;na4 at the sole discretion of DNCC ~a ••d on

availability and upon which DNCC ••y begin drawing a. of October

1, 1••7. %~ .~d1t1cn, eo:pliDentary aooms will be in ~lock. of

AD .ora than 50 prior ~o convention Week, reservations ••da with

le•• ~an ~vo (2) w.aks hot1ca will be .ccept.~ on a space • available ••1.. For the pUrpos•• of the within A~.uent, ene

z19h~·. single or double occupancy of • 8in;le .1.epi~; room 1.

-dafine4 .s one ftroom n1Vbt-, .s-1. each n1;ht'. us. of .ach

parler, and of each 8l.eping room, in a suite. Should ~NCC

request Ccmpl1~entary Rooms when they are unavailable at the

Botel, Betel will us. its bast efferts to ebtain cc:parable

al~.rnat. co:plimentary accc~odatiens. ~h. Hetel will also.... provide to ~NCC en a co~plimentary ~asi~ the use of •

Presidential Suite during Convention Week.

5. Et)t!XrJhBm,s orrrcts/coMFLD'JJiThRX BOOr'S

~h. Hotel a;rees to provide en a co~plimentary basis a total

cf fifty (50) sleeping rooms/effices contiquous er as nearby as

~o as is physically possible, en the lowest VUest room floor cf

~e Hetel. ~h.se rooms will either be used as co:plimentary

aleepin; rooms, or converted to office space (herein referred

~o as the Hea~quarter. ~ff1ces). ~. furn!shin;s cf the

--H.a~quarter. Office. with such furniture and effice equipment

(1nclu~inq wor~ processin;), as is reasonably re~~ire6 by t~e

~NCC, includinq labor, carta;e, drayage, .torage or furniture

" rental in connection with either the

-5-
.. - ~: .. --- - --- - ,.-

..

convarsio~ of vuest rooms ~o ~e Headquarters Office. and

%et.urn1ng of same t.o quest rooms, and any costs for duag.s over

an4 above the normal dama;_ fer sove-in and =ove-out will be paid"

·~or J)y.t.he DNCC:.

~e Headquarter. Offices/Camp Room. will be prepared fer

occupan~ en the following acbe4ula.

(1) Twenty (20) h.a~quart.r. cffie••/compli:entary

rooms from June 1, 1988 through Au;ust 1,

(2)

(3 )

11881

Twenty (20) additional hea~quarters efficesl

co:p11mentary rooms from 3une 15, lSaa

through August 1, 19S8:

Ten (10) additional headquarters efficesl

cc:plimentary rooms frc= July 1, 19S8

through Auqust 1, 1988.

(20)

(40)

(SO)

~he Head~~arters Offices/Cc:plimentary Roo:s will be vacated

~y the DNCC no later than 12:00PM (noon) eight (8) days ~eyond

~. end cf the Convention Week, cr by Monday, August 1, 1988,

whichever occurs last.

--.... 5. mrION LaBOR

~h. provision by the Hotel cf all services c:c'nte:plated by

the within agree:ent will be provided by the Hotel's e~ployees.

~ff and when, additional labor is needed, the Hotel will not
- .' ,-

•

%astr1ct the performance of such activities ~o union or non-union

~abor, ~ut will chc.~ employ••• or companies capable of

perfcrmanca in an effort ~o deliver all ••rv1c•• contemplated.

7. MOpXlICATIOHS

structural .odification. ~o ~e prami... (other ~an

• effie••) of ~e Hotal ~.c••lary ~o comply with ~a provisions of . .

~. within AgTeement will be affected ~y the Hotel an4 charged to .

. ~. ~Nec or appropriate u.er 1d.ntifie~ by ~. ~NCC. I~ 1.

acknowl.~;ed by the partia. hereto that, in a~~iticn, certain

ether ~o~ificaticn. may be requested ~y user. of the pre:i.es of

~e Hotel. %n this event, Hotel will usa its best efforts to •

••s1st 1n such .~diticnal =odifications: provided that, such

a~~itional modifications shall not un~ul~ interfere with the

%eqular activities of the Hotel, and that the pre:ises =o~ified

o .can be re'turnec! to its criqinal st.ate.

8. Jk~!TOBIhL SUTIqs

~he Betel will provi~e without charge, sufficient cleaning

services to maintain the hi9hest stan~ard& of cleanliness.

•• ELECTRICAL PO"'TB

~e Hotel will provide, without, charge, crdinary electrical

power to the Room Block, Co:p11~entary ROo:s, the Presidential

Suite and Public Space, anc! sufficient electrical power to the

Eeadquarters Offices and Media Space to operate type~ritin9,

photocopying, co:puter, recor~in9, word p~ocessinq, facsimile
-.

~ansmi ••1on, radio and ~.1.vi.1on broadcasting and . ccmmun1catlons equipment. V••ra other than DNCC reque.t.in; the

1n.tall.~lcn of additional alectrieal outlets, or ~.

av.l1&bl11ty of pow~r suppli•• above. and beyond ~at or4inarily

available, will )). required too ralmbur•• Botal tor t.he direct

cost ~.r.ot. All extra power and ac1c!1t1onal outlets in axc•••

of the standard uc:>unts .uppl1e4 b function are.s and gue.t.

~ocm., will paid tor ~y the specific ••41a or other entities

•

('(

1.0. ZtZYATOBS

~he Hotel will provide, without charge, sufficient personnel -.

·~o cperate, maintain and repair promptly, on a 24-hour en-call

. -- ~asi. durin; Conventicn Week, each af the Hotel's escalators,

passen;er and service elevaters. ~hro~;hcut convention Week,

Hotel personnel will permit desi;nate~ DNCC personnel the use of

aervice elevators.

11. acCESS

Vsers assigned by ~NCC will be per=itted 24-hour access to

the Public Space, H.a~quarters Office., Media Space, Room Block,

Presidential Suite an~ Co=plimentary Rooms durin; convention Week.

-~ J.2. SECUBITI N,.P YZPI¢1;L EE'BSOIDf!L

The Hotel ~ill provide, at no char;e, 24-hour peak level

security throughout Convention Wee~, consistent with the nu~~er

of officers deeme~ by the Hotel to be necessary to provide a

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•

••cure environment for our VU••ts. ~he Hot.el will supply t.o •

1.presentative of ~. DNce • listing of emergency numbers and the

~.l.phcne ~u=b.r. of doctors Who have air.ed ~o ~. on-call on a

24~hour ~a.i., and who have repr••ented ~amselY•••• bain;

...r;ency rocm certified. ~e Hotel cannot reccuan4 or

'l'Jar.n~.e ~. qual1~y of any physician or J1ur•••••rvic•••

•

~J. 700P pm EkYElUGE snyxo;

~. Hotel f • ~rdlnary fco4 an~ ~.v.rag•••rv1c•• will be

provided thrc~;hout the Pre-Convention and conv.ntic~ Week, ~e

Botel will confirm vuaranteed price. ~y ~anuary 15, 1988. Room

aervice will be available throughout Convention Week en a 24 hour

.. f'.. J)asis.

~h.r. wiil be no labor charge fer ~oo~ or beverage

~uncticns. A ;uarantee ef the nu:ber cf persons attending each

catered ~ood cr beverage· function will be provi~ed to Hotel no

~.s. ~an forty-eight (48) hours in .~vance of the function.

Betel agrees to provide fer five percent (5') ever the quarantee

~cr ~uncticns ~p ~o three hun~red (300) people, and three percent

(3'> for functions ever three hundred (300) people.

~. Botel requires ~at all tood and beverage serviced in

hospitality suites and parler. must be purchased frc= the Hotel's

~oom Service Department. It alcoholJc bevera;es are to ~e served

en the Hotel'. pre:ises (or elsewhere under the Hotel's alcoholic

beverage license), the Hotel would re~~ire that beverages be

dispensed cnly by cur Hotel servers and bartenders.
·- . •

~4. m;GISIBATIOH KAn:BIAts NfP lAeXLrtm

Hotal will provide wl~ou~ charv. ~o ~NCC registration

sat.rial. d.signed by DHCC in con.ul~.tion with Hotel ~o be used

))y mfCC t.o .alee •••i;nments of VU••t z-oas anc! function .pace.

Zotel will cooperate with peraonnal from the Atlanta Convention

aft4 Visitors Bureau •••iatin; DNCC in .akin; suCh •••1;n=ants.

Botel will provide without charge registration 1nfo~atlcn desk

~.cil1tl•• in ~e Botel common are. tor ~. exclusive us. of

1.5. Y.!,Sn:B ACeomrr

~h.r. will be a room an~ tax Master Acceunt an~ a Food a~

~. -

••verag_ Mas~er Account established fer DNCC. Hotel will be

-- .~vi •• by ~NCC from time to time as to~e persons authorized to

sign fer charges billed to the Master Account. ~NCC

representatives should review all charges with cur Credit Manager

cr Assistant Controller in char;e of Accounts Receivable prier to

your departure, before presentation of the Master Account

~illin9s. seventy-five percent (7S') of the total Master Account

~illin; will be pai~ by JUly 31, l1S8, ypon the final departure

e! all ~NCC personnel, and the final Master Account balance will

~. ~u. vi~in 30 days ~ereafter. Before presentation of the

Master Account J)il11ngs.I Hotel will review Master Account charges

~vith • person desiqnated ~y DNCC.

From the date of initial occupancy by DNC or CNCC personnel

~rOu9hout July 31, 19S8, Hotel will ·provide ONce with ite:i%ed

~aster Account charges and documentation on a weekly basis. For

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... • •

~. perioe! 3une 1, 1'.1, t.hrou;h ~. final departure of all J)NCC

personnal, Hotel will provide ~NCC itemized Ma.~ar Accoun~

charg•• and docum.n~at1cn on a dally ~a.i••

16. COXELll"HkE KITH Paws

%n ~. performance of this A;ranant, Hot.el .hall comply, •

with all applicable lavs an4 re;ulation., including federal,

.tat. anS local ca=~a1;n finance laws an4 laws relating ~o fair

. • a=plcymant practice., aneS shall- not discrain.t.. a;airlst any

person ~e~aus. cf race, cr••4, color, reli;ion, aex, age,

national crigin or sexual cr1en~at1on.

·rr

18• 'ttjt\:!!Nhflf! ON

DNCC may, by WT1~ten notice to,Hotel, ter:inate this

-.... Aqre&Jnent it Hotel fails (other than by reason of a ~reach cr

default ~y DNCC un~er this Aqree~ent) ~o provide facilities,

;oods and services required ~~der and in accordance with the

.che~ule prescribe~ by any provisicn cf this a9ree~ent. In the

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event of ~erminat1on, DNCC sball have all ether remedi••

available ~o it under applicable law.

1'. .paXTMTIOH (OP~ POR DISC:OSSIOH WITS XAIUUO'r1' COJtPORATIOH

%ZGAL JtEn%SEN'tATIVZ)

Any dispute or claim arising cut of or relating ~o ~1.

Agreement, any JDodification or extansien bereof or ~ny })reach

hereof (1ncludin; the question of whether any particular satter

1. arbitrable har.un~.r) shall •••ttl.~ axclusively by

ar~itration in Georqia, in .cccr~anc. with the rule. of the

American Arbitration Associaticn then in force, except as

sodifi.~ by this A;reement. ~. party requestin; ar~itraticn.

ahall ••rva upon the other party -to the dispute cr claim, anc! ..... ~p=n the American Arbitration Association, a ~itten demand fer . arbitration stating the substance of the ~ispute or claim an~ the

contention cf the party requesting ar~itration, and the name,

.~~ress and telephone nu:ber of an arbitrator appointed by i~.

~he party receivin; such de:an~ an~ the ~erican Arbitration

Association sball each appoint an a~~iticnal arbitrator within 12

hours after receipt of auch ~&:an~ fer arcitration. ~her. shall

~. no prehearing discovery, and the arbitrators shall convene to

hear the ~isput. cr claim within 24 hours after receipt of such

demand for arbitration. The h.arin;~shall not be continued cr

- recessed, and each party shall have en. hour after com=encement

cf the hearin9 to present oral and documentary evi~ence. ~he

arbitrators shall announce an award to the parties by telephone

cr in person within ene hour after conclusion of the hearing,

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shall .n~.r an award in writing within 24 hours, an~ shall .erve

ftot.ice thereof in writing upon each of t.he parti•• thereto. The

parties hereto -;Tee t.o abide by all awards raneS.red in such

arbitration procae4in;., and all .uch avards and decisions ••y be

f"11a4 J:>y ~. prevailing party with any court of c=mpatent

~ur1.dlct1on a. • ~a.l. for jUdgement an~ ~e i.suance of

execution thereon. Such ~uCS;e1D.nt. .hall not J). cpen to revie"

exception ~o ~e ext.ant. permitted by t.he Federal Jtul~s cf Civil

Prcc.~ur.. ~. r••• of the arbitrater(8j, attcrney f ••• ~4

related expanses of .r~itration shall be awarded ~o the

prevailing party .a ~.termin.~ by the arbitrater(s), in a~~1ticn

~o any ether relief to which the prevailin; party 1. otherwisl!

en't1tlec!.

2D. laSCJ:TT.lJ.,.topS PROVISIQNS

20.01 ~~dition!] Aetions end poeu~ents. Each of the

parties hereto agrees to take or cause to be taken such further

- actions, to execute, deliver and file cr cause to be .xecut.~,

t"'" delivere~ an~ file~ such further documents, and to use their best

ox

efforts to cbtain such consent., as may be necessary or as may be

zaasonably r.qu.st.~ in crder ~o fully effectuate the purposes,

~.rms and conditions of this A;reament. Such actions shall

~nclu~. without li=1tat1on fully an~ effectively resisting and

-- defen~ini against any action by any third party which interfere

with the full and ti=ely perfcr:ance of this Aqre~=ent ~y Hotel.

"13-
• 20.02 Hotie... All notic.s, demands, requests or othar

~unicaticn. %.la~in; ~o ~1. Agreement shall 'b. in writing and

&ball ••a11e4 by first cla••, r.;1.t.r.~ or certified aa11,

~.~ r.c.1p~ r.;ue.~.CS, post.a;e prepaid, or ~raM=1tt.4 J:>y band

deliver, ~.1.;ram or telex, .eScUe.sed a. follows:

%1 too Bo~.ll

•

# •

A'11ANTA HARRIott J-'..ARQUIS BOttL

265 Peacht.ree Cent.er Avenue, HE

Atlanta, GA 30303

Attent.ion I Mr. ~.~ Renner

"Title. : Ceneral Hana;er Telep~cn.: (~04) 586-6100

Telex No.: 671-2053

With a copy (which shall not constitute notice) to:

Ms. Carolyn Colton

MARRIOTT COrtPORATE HEADQUARTERS

Lay Department .... One Mar:iott Drive

Washinqton, ~C 20058

(301) 897-9000

If to DNCC:

19B8 Democratic National

Convention Co::ittee, Inc.

430 South Capitol Street, S.E.

Washinqton, DC 20003

Attention: Ursula CUlver, Controller ~.lephcn. z 202/863-8000

~.l.x No. I

With cop!.s (Which shall net constitute notice) to:

Paul G. Xirk, ~r., President

lSi8 Democratic National

Convention Co::itte., Inc.

430 South Capitol Street, S.E.

Washington, DC 20003

~eleFhone: 202/863-8000

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30••ph A. Ri••er, 3r., zsquire Caneral Counsel . D.mccra~1c National ccm=i~t•• c/o ••e~ Smith ShiV , McClay 1150 Connecticut Avenue, NW

Suite .00 . Wash1nqton,'»c 20036 ~elepbcn. I 202/457-'100

Zach party'. addr•••••y b. changed J)y written 1'otice -to ~a

ct'.ber parti... Each notic., doand, r.;u•• or oth~r

ccmmunlcaticn ~ransml~t.4 in ~e manner d.scr1be4 above .hall be

d ••med aUfflciantly 91van, ••rva4, ••nt .n~ received for all

purpo••• a~ such time •• it is del1vere4 to the .~~r.s... (with

~. return receipt, the ~e11very receipt, the .ffi~avit of

aassanger or (with respect to a talex) the answer back ~eing •

~.emed conclusive evidence of such deliver) or at such time as

delivery is r.fuse~ by the a~dress.e•

20.03 Scverobi11ty. If any provision of this

A;reement cr any ether .qree~ent, document or WTiting 9iven

pursuant to cr in connection with this A;ree~ent shall ~e invali~

cr unenforceable under applicable law, such provision shall be

ineffective to the extent of .~ch invalidity cnly,'without in any

way affecting the remaining provisions of this Agreement.

20.04 Survival. All covenants, agreements, atate=ents,

-.~r.presentations, warranties an~ 1n~e:nit1es made in this

A;ree:ent shall survive ~h. execution and delivery of this

Agree=ent and any investigation, .u~it or inspection made by any

ether party.

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20.05 Waiyer. Neither the waiver by either of the

partie. hereto of • ~r.ach or d.faul~ under any of the provisions

of this A;r••1D.~t., ~C)r the faIlure of any of 1:,he parti•• 'to

-enforce any of the prevIsions of ~1. A;r••m.n~ or ~o exerci••

any r1;ht cr pr!v11aqa bereunder, .hall th.r.af~.r be construed •

• s a waIver of any aub••;uant ~reach or d.f.ul~ of • similar

mature ~r a•• waiver of any ether provisions, rights or

: -..,riv11a;c= ~ereunc!er. No failure or delay on the part of any

party in exercising any right, power or privilege her.un~er shall

cp.r.~. as a waiver thereof.

20.06 Assign~ent ID~ ,in~inq Etf.et. This Agreement ..-- .... • hall ~. bin~in9 upon an~ shall inure ~~ the ~enefit of the

parities berete and their respective successors an~ assi;ns,

provi~ed that this A9r.e~ent shall not be assiqnable by any party

without the prier written consent o! the ether party bereto

.except, in the case cf ONce, to another organization affiliated

with the De=ocratic Party.

20.07 Amendment. No amendment, =odifieation or

dischar;e cf ~is Agretment, and no waiver hereun~er, shall be

Yalid or binding unless. set forth in·writinq and duly executed by

the party against whom enforce:ent thereof i5 sought.

20.08 ~Dtjre !gree~ent. This Aqree~ent (incl~ding the

Exhibits hereto) constitutes the entire A9ree~ent among the

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~art1.s b.r.~o with respect ~o the aubj.ct .attar hereto, and it

.uper••d•• all prier oral and written air.amants, commitments,

un~er.tandin;. or proposal. with respect ~o ~. &attera provided

~or har.b.

20.01 B,.~inql. .ara;raph h••din;s contained in this

~;r.em.nt are in••rted for convenient raference only, .hall ftot

~. CSae:e4 ~o b. • part of ~1. Ai'%'eement fer any purpo••, an&!

shall %lO~ in any way .....fin•.or affect. the .eaning, ccnstruct10n

or .cepe of any of the provisions hereof.

a

,-

20.11 tx'evt!on in counterp1t%s. This Agreement ma~be

axecgted in as many counterparts a. :ay ba desired, and it shall

.... nc~ be necessary that the signatures cf,· or en ~ehalf cf, each

party 2ppear en each counterpart. It shall- not be necessary in

:akin; procf of this Aqree=ent to produce cr account for more than

• ~u:ber cf counterparts containing the respective si;natures cf,

cr en ~ehalf cf, all cf the parties bereto.

20.12 %nde0pifieotion. ~e Botel aqrees to d.fend,

~n~emnify and bol~ harmless DNCC, the De:ocratic Party,

~mccratic National Co:=1ttee, the eo::itt•• en arrange=ents, and

~. site Selection Cc::ittee, ~o;.th'r with their affi11at.~

crqanizations, ~irectcrs, officers, ampleyees, agents, attorneys,

volunteers, consultants an~ consulting staffs (the

·Inde~~itiesft), egainst and from any and all liabilities,

cbligations, da~age., pen~lties, claims, costs, charges an~

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~xpenses (1nclu4in; .ccountan~ and attorney f •••), which may b.

~pca.d upon, incurred by or asserted against ~. H&rriot~

Corporation or ~. Botal. The In~emn1t1.s a;r•• to Ho14 Harmless

~. Hotal and Karr10tt Co~crat1cn, ita employ•••, avent_, and

officer8, fro. any and all liabiliti.s, obligations, dama;••,

panalt1••, claims, co.~s, charges an4 expans•• (inclu4ing account •

anI! attorney fe.s), which aay ba bpo••cS upon, 1ncu~ed by or

a •••rte~ against the hetel ar1s1n; out of ~. ne;11vence cr • .

1nten~ional .i.con~uct of ~. Indemn1t1•••

20.13. ~he Hotel will ~es1;nate by ~anuary 1, lS88, a

.enior .xe~wtiv. as liaison with DNCC respectin; the activiti.,

ccn~e:plate~ by the within Agreement.

%N ftITNESS ~OF, the partie. have caused this

~qr.~ent to be ~uly executed on their behalf as of the date

1irst hereinbefore .at forth.

-...

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•

•

Mr. Paul

President

Damocratic National

Convention Comm1~t••

Sharon Pratt Dixon ~r.asur.r

»emocrat1 Ccmmi~~••

Date

f'.. -

....

~t~gau -- Hotel Pepr••entative

Atlanta Harriett Marquis

------~ I 7lu

Sharon Pratt Dixon

'Ireasurer

DL~oeratic National Convention

Cor.:tittee

.+,.

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. <JIlt... • .~ .-.. CO-~11DQU<l.S IOtlL lCIII"llt

tt"

»IMOCIA!IC 11TI011L COI'.lfIOI

tlIS IGIEEME.t S. eat.red leto Oft lept•• ber ,Itb. "IT••, .ftd ••cnl the B,att Corpo~.tloft D/I/1/11att Itllnc, ltlanta,

(atbe ~ot.l.). IDd tbe 1988 D••ocr.tic ••tlonll ConYletton

Co.mitt••, %no., • ~1ltrlct or Col~.~1a DOD-profit oorporation (the ·~HCC·). In oonl1dtratloft or the .~tual oo~.n.nt• • er1elrter ••t tortb. tbe parti•• bereto .Ir•••• followa:

1. OUEST 'OOMS lID SUITES

The H,att .,c.ncr Atlanta air••• to r ••,rYe 1.000 lu••t

~oo.a 1nclud1ftl at l •••t 35 lu1t•• ang 20 ~.;enc, Clyb rooa. to •• under the IIcluI1YI control or the DHCC rt'~lct1nl the ,eried ~ulr 1- to JulJ 25. 1988. Tbe block 1n total 1••• tollows:

1)8t.: , /1. T"5 "'6 , "1 1/18 1/19

1)17: tHU FII IAT IlJll "O~ ttOE ~V-

~loct: 220 ... 0 170 1000 1000 1000

"" 1)at.. : 1/20 -1121 1/22 .,/23 ., 12-

1)1': WED THU FJtI SAT SUN

~lcck: 1000 1000 660 _.0 220

",0

en Jyly 3. 1988 DNCC reque.tl any ,ort1on or the loom Ilcck then

an •••1«ned or andepo.ited by ~NCC or St, attende •• r.Ylrtl back

to the hotel tor leneral r •••Ie at tb. preva111nl rack rat••• r')

'.-- The Hrltt Jtcenc1 Atlanta ba. cont1r~ed the DNCC the ~,t

.~t.t room rate ot "25.00 .1n~1. oecu~.neJ and '1.5.00 aouble

occupancy, to include oure r'lular deluxe lue.t roc= ••xcludlng ..~.ney Club Leyel and Suite,. Th ••• rate. art net, ~oneo~~1•• 1onabl. and vi1l bt lubjeet t.o the ~r.v.111nl ec~b1ned

.,1•• and occu~anancy tax which 1. currentl, 111. The •• rat•• vill ~ot be iner•••• d and vil1 bt .,.11Ibl. to all a.erl

d"IEn,ted by the DRCC trom rive (5) vork1c& da,l betore to ttye

(5) vorkinl dlYI .tter the Conv.ntion V.~k, 1/18-2./88. two (2)

children ander the 8'" or '8 ,Iarl old will be permitted in tbe

au••t rOOD or the parent trl' or charll. £11 addit10nal lu,.ta

.111 require a charle or .20.00 per ,Iraon.

The Bratt lelene; Atlanta vill ~tqu••t • tour (') ~1lht

.1n1.um ItlY tor all d.'1~nlt.d rOOD' to bt ~andl.d by the ~NCC.

In addition, once VI rlcei.1 the a~~ro~r1.t. r •••rvlt1oftl, v.

viII require a en. ~1~ht de,cltt to be recei•• d in our

.t.er•• t1on. Off1ce within " day. or &lk1ng the r ••tr.lt1or..

th1. de~oalt will au.rante. the cutlt room tor late arrival en ~b •• p~ro~r1.t' arrival dati. Once the au,at arrives at the ~otel, that deposit v111 then be credited tor the1r l.lt n1chta

ata1 which vill hive been rtYtr1t1td ~~on cheek·ln. I.r~ndl vi11 •• ,ranted enl, it cancellation 11 received 120 hour. or 5 days

»r1or to arr1yal date.
• _.... -. ..

2. ,nBLIC SPleE/ME~11 SPICE

!he I,att 1'.lnor itleDta vl11 bold all ••ltiDI .paci lD ~~. IftterDltlonal tover tor the »ICC .sclul!.1 oODtrol ot durlnl

tbe ,eriod ot ~ulJ 11-2-, "a8 Oft • 2. bour ~.rlod. rartber.ore,

'be .,Itt I.IIDOJ Atlanta ott.r. the r ••,lndlr or oar •••tSal

.paOI tor tb••xcla'iY, oontrol ot liCe Jul, 16-2' OB • " boar

.•••Sa. fbla vl11 allow \~. ~ICC to baye • total of 105,000

8Quar. t.e' ot-.I'tiftl aDd .xhlbitlon 8ploe OYlr tbe ,rS•• date • • , 70ur ••,tiftl_ V••Ik tbat '1 dl'. ,rior to tbl op.Dial ot

70ur '988 ooftYlntion an1 portion of the publio .pICI tb.ft

_un",Slftld " »HCC ptworta to tbe bot.ll proylded tbat, botel

aua' obtain tbe ,rior wrlttln appro.al of »ICC •• to aft' other •••r durinl oODY.ntlon v ••k. 'b. bot.l vill turDl,h tb.,• •••tlnl t.cll1t1., witb the .~proprl.t. nuaber of tlbl••• ebllrl,

labor to a.t up thl ••atinl .~.ce •• ,tandlnc ,od1u., aDd all

801'••1 esiaiinl liehtlal lad .1.etr1cil rcqu1re.ente at DO

eharl.. In, additional turn1IhSftl.; Icc•••or1e., .1crophon.a, .ou~d enlinleriD,. or alteratlona to the •••tlnl Ipace 8ult ~.

&be r ••ponllb1l1t, of ~b. ~NCC or appropriatl plrtlel.

3- COMPLIHENTA~t lOOMS

'·0

Th. Byatt Itl,nc, Atlanta will ba ba~P7 to ,roySde tbe ~ICC with 300 GoaplS.lntar, poom allhts to bl ••Ilened at 'be

aol. d11cret1on or tbe ~NCC Ind ••y b. utilized an, t1•• up uDt11 ~ulJ '.tb, 1988. It .thl total 300 room fti&htl are Ilot ut11iled

at tbat ti••, th1, particular otter vlll be conlld.rld Dull and .o1~. ror purpolt. ot th1a Ilr.ament, the tollov1nl cbart vlll

£11ultrate our ~o11cJ on eoapl1eentlrJ rcom utllitlt10n:

C" lIP Suite (tor one ft1Cht) Two Unit. ~.lux, 'anoraltl (ror one Dllh t) Two Unit.

"" Bo.~it.11t1 Suit. (ror one l2iCht.) two UD1t.

,,- 'anoraaa Suit.e (rcr one D11h t) two'Unitt

Crown Su1te (tor on. 1l1Cht) two On1tt ~('" MII.DCY Club Llyel 1001: Sinll. or Double

(tel' one a1lht) two Un1t. ,.... ." Gutlt loom Sinell or ~oubl.

(tor one c1lbt) One Unit

~h •• bc~ ••cll, 11 tor on. bedroom .uSte., two bedroom lult•• would require ODe aere anit ot account1DC.

5. ""10M LA!OR

Vhlrly.r ~o'llbl., tbe ~roY1.1on. by the betel or all •• ~ylc•• oont•• plated within tbt 'Ir•••ant w1ll bt ,roYidad b1

I1D1oft labor.

6. ~ODIFICATIONS

In, 11.1ted dlcorltiye -odificationl to the hotel ~r ••i.e. nlc•••,r, to co=~l, With t.he provillons Within tbia

.Ir•• ee~t vill bt tbe r.lponl1b1l1ty or the DNCC ••• ~provtd

~J hotel •• nll.ment. Mot v1thltlnd1nl Iny or the proy1.10n. ,roY1ded Within, DNCC Ihall not hive the rllht to raqut.t

aod1t1clt10nl at tb. botel which tnvolYI .truct~r,l cblnlel.
... - ...-

1. ~lNITOII1L SE~'ICES

T~e Botel vl11 ,roySde without ohar,. to Dice, lutticltDt

el•• ~1ftl .try!o,. to ••1DtalD the ~1,h••t ataDdlrd••f

.1••Dl!D••••

I. ELECT_lelL 'OVEI

the B,att l'l,ncr atlanta vl11 ,roYldt, witbout obarl' ~o ~ICet exiatiftl electrioal ,over to all GUI.t looa., Co.~11.,nt.rJ looa •• III Suit•• aDd 'ublio .paee. U.tr. otbtr

thIn »ICC requ.atl"1 SnltallatioD ot addltSoDal .lectrioal

outlet. or tbe .,allabllit, ot pover luppl1•• abo•• and

'.fong tb.t ordlnsrl1, .yelleble i will ~. r.qg1r.d to rei.bur•• &be ~ot.l tor tbt direct ooat thereof.

.,

,0

Tht Bfatt MellDc, Atlanta vlll ,roYlde without obarl' .~tfle1.nt plr.on"el to operate, .,intaln. and repair ~ro.ptlJ,

Oft • 2~.bour on-call ba.l. durlna Ccnytntloft Veek, each or tbe

Botel" ••cIl,tor., ' ••••nler and .erTlee .l••,tora. Tbroulbout Cofty.~t1cft Week, lotll ,er.onn'l vlll per_It d••lln,ted »HCC ~.r.onn.l the a.e or .lrylce eleYatora a. 10ftl aa it doe. Dot tfiteru~t the r'lul.~ actlYlt1t. and .,rYlee. of tht Hotel. »XCC ~h.l~ ~rcv1de ~ro~.r ld.ctlrle.tio~ to tbo •• ,artie. it 1• • 11ovi~1 to utilize tbl••••rv1cI .It••tora.

10. aCCESS

~aer. vlll be ~lrm1tt.d 2' hour acc••• to the Public S~.c•• HeadQuartera Orllcl, M.etine Spice, Rooa Block, all

Su1~'" led Co&~11.ent.ry ~oo=., o~.r the dat•• of JulJ '~.2~t

1 988.

11. StCU~I!Y l~O ~EDICAL PE~SON~EL

the lottl v1l1 prOTide. at mo obarl_ to ~HCC. Z'.bour ~eak 10.,1 .ecurltJ tbroulhout ConTtntion V.lk. tbat vill 1nlure

the a.ltty or all lut.ta. tht Du&blr or Security Otflcers vlll

'e dep.ndent apoD the occupancJ or lbe lotel. fbi Botel vlll

.ake IYlll.bl. on I 2_.bour on·call billa at no ebarl' to tbe ~NCCt the ••ry1ct. ot • mar.e and ,h111c1aa, •• eb E••rlencl loom

Certified.

, 2 e rooD j RD :~ [V! 1C!

The IJatt le~ency Atlant,'. ord1n.rJ rood and Be,erlle •• ~yic'l vill be ~rov1dtd throuchout Con.ent1on V.ek.

'n or betore January 15. 1gee, Sotel vill confirm luarant••d

price. wbich vill not elcted by aort then 5S thOle pricea in

etfect a. or JanuarJ '5, 1'88, aDd ,rovlded further that

~ht eha~I' tor .l•• d drink. at orllniztd rood and bl••rlle

tunct10ft. vil1 ~ot exceed _-.50. loom Service vill be available ~broulhcut CoftYent101on W.ek rro. 6:00 •••• to 2:00 •••.
- . , till • • -....

.-

Tbere v111 bt ftO 1.~or obarlt tor tood or bt••rl,'

loaotloftl with tvant, (20) or .ore ,trloDI in atteDdIDO'. &

lu.rant•• or lb, ftu.blr of ,trion. attandSftl ••ob tood or ••••r.l. function will', ,rovld.d to lotel DO 1••• tban tort,-

8Scht ('8) boar. 1n 'dYaeol or tb. function. fb ••,Itt I"IDO, Atlanta a.r••• to ,roy Ide tlY8 ,erclnt (5S) OYtr 'be au.rant•• tor funetioal .p to thr•• ~uDdred (300) p.ople, aDd 'br•• ,.roIDt

(3.) tor tUDotloal oyer 'br•• hundred (300) ,Iopl••

". IEC%STJ~ M1TE~I1LS lID FACILITIES

tbe B,att .'ltn07 atlanta will ,roYlde vitboat obarlt to

»ICC re,latratloft ••t.rSall d"Slned 'J »NCC la oon.ultatSoD wltb

tbe B,att .tCIDCY Atlanta to .t a.ed br ~NCC to .ak, a ••llft.tDta

ot ,u••t roo•• and tunotion apaol. the Bratt Itlencr Atlanta

w111 cooperate wSth "rlonntl fro. the Atlanta Con,.ntloD , '1.1to~. lur.au •••lltlftl ONCC in .,tiftl .uoh •••1Ift••Dt. fbi

Britt I.~tncy At~ant. will ,ro,1de without oharl_ rtllltrltlon - intor••tion dt.k fac111tle. 1ft the lottl CO&mOD ara. tor the

ezclua1 •• u., of ~~CC.

1'. ~lSTE~ aCCOUNT

~her. will ~. two 't~.rate M'lter Accountl Itt up tor ~~CC. o~, of wbich v111 b. tor rooe. and related .I~tnse. and the

other ter tood and beyeraCI function.. the Hyatt Rtcency Atlanta

t. to bt advis.d by tht ~NCC ~r1or to arrival .1 to the ptrlona

luthor11ed to .11n tor chari" to be billtd to tha •• account•• or the total Malter Account balanc., i5S vill bt ~ald upon the

fSnll de~.rtur. datI or III DNCC ~Irlcnnel and tbe re••lclns

25' or tbe Ma.ter Account bal.nc~ vlll be dut vithln 30 da,.

thlrtafttr. The I.tlbll.hmtnt or the above ••t.r Accountl 'hall ~, ~r.dlcat.d oa the ap~roYal or a Itlndard HYltt ~'leDc, Atlanta

Crtdit A~p11c.t1on, to bt tlltd vith the Hyatt ltc.ncy Atlanta ftO

later than JanuarJ " 1988. ~h1. application vill bt aubjlct to

all atandard BJatt Corporatlon criteria.

I.fore ~rll.nt.t1cn of the M.lt.r Account bl1l1n" I

~.~rt't~tat1Ye trc= the Aecount1~1 De~art.ent of tht Hyatt

1 ••lne, Atlanta vl11 rtvi.w tbt Ma.tlr Account cbarl" vltb ~he

dt.11~.t.d ptrlon of the ~HCC. rrom tbe dati or Snitlal occu~.nc, bJ ~NCC or ~NCC ptrlonnel throulh MI7 ". "88, Bratt

It,ency jtl.n~a will ~roYid. DNCe vith 1tt.illd Halter Account

ohlr,•• and docu•• ntlt1oD on I v.ttl, ba.i.. 'or tbe ,triod ~Uft. 1. 1988. \broulh the tiDal d.~artur. or all ~NCC ptr.oft~.l,

Bottl will ~ro.Jde ~~CC It.~11.d Malttr Account chari" and

doou.tctat1on on a dall, 'a.1I.

'5. COHPLI1~CE V!TH LAWS

In the pertor•• nc. or the Alre •• ent. Bottl ahall comply,

and a.lure that all 1nd~ptndent contractors .r.~alfd by Hotel ~o:~lJ wlth all ,p~11e.blt lava and rtlulat1oftl, 1nclud1nl

ttderal, .tat. and local campaic n finance lawl and lavi rtllt1nc

to fair •• ploy.tnt ~r.ct1ce••• ~d ahlll not d11cr1m1nlte al11nlt

an, ,trion bealaa. cr rloe, er.,d, color, rt11c1cn, •• z, ale, ~lt1o~.1 or1c1D or 'flual ori.ntatlon.
J. • ••

.-..

16. JEPJESENTATIOIS liD VAIIAMTIIS

tbe lotel .erebJ repre.lnte, .arrante, aDd •••Inanta a. ~o11ov'l !hi. llre••lnt oonltltut•• th. 1'111 ••111' aad 'ladinl

.blllatloD ot lotel, enforo.able Ie 1000rdaaOI vStb St. '.r.l.

jl1 tlollltS••, lood. aftd ••rylo•• lural,b.d " 80tel .ad.r 'ble

ACr••••nt vill •• l,t'l, oonltruoted and tr•• Iroa derect, Sa •••1Ift, .aterlel. aftd vort.anlhi,. vill •• ,aStable lor tbe

£atlnded ,urpol. and vill loetor. to tbe .plcificatioal ."lblS'b.d and., tht, 'Ir••••nt. .'lther tbl lot.l Dor an, ,lrloD Sa St. 'ebalt •• 'lid or a,r••d to pa, IDr oo••1••10D,

',_roIDtall or t •• or aftJ kind to aa, p.raoD or entlt, eontlftltnt

.pOft or rl.ultSal troa tnteriDI lato 'hi. &Ir••••at.

11. "!~MI.ATIOI

Otbe~ tban bJ 'r.aoh or detault b' »HCe and.r 'bi,

.er••••nt to ~royld. tacSliti••, lood. aDd ••r.lee. required ander and in accordanoe with t~. Icbldul. pre.cribed aDder tbi. ~Ir.t.ent ~ro.ld.d \bat: Iucb railur•• 'hall onl, r •• ult ift thl

riKht of tereination it 1t lub.tlnt1.11, attect, »NCC', ability ~o co~t1nu. on With tt, eonv.ntion and r.lults In subltantial and ~roY.able d••ale.. 1ft the e.lnt of teralftltlon, DiCe aball ••• all other reeedi.1 aYailabl, to It undlr applicable lav.

18. !.!!IT~ATIOW

An, d1.pute or claS. artalnl out of or r.latl~1 to tbis

.Ir••••nt, anJ .od1r1c.~1on or estenlloa blreof or an, br.ach

bereof (1nclud1nl tho QU.ltl0ft or whither anJ ~art1cul.r .atter

Sa arbltrabl. her.under) Ib.ll 'I •.ttled IZC1Uli.tlJ by

arbitration 1n Atlanta, G.orll., 1ft accordance v1tb tbe rule. er ~h. A••ricln A~t1tr.t1oft A••oclatlon thin 1ft torce, .scept al

.edlfied by tb11 Aar••••nt. the part, r'Qu.,tiftl arbitration

ahall .erye Gftder \he otber ,art, te the dll~gt. or clai., and ~~on t~. ie,rican Arbitration ll.oelation, • wrltttn d•• and tor

arbitration .t.t1~~ the Iubatanci of ~be d11pute or clai. a~d the eont.~t1on ot the part, re,ue.tSDI arbitration, and tbe D••••

addr••• and t.l.~hoftt au_ber or aD a~bltrator Ippolnted by it.

the part, rlc.191ftl .uch de.and and the ' ••ricln Arbitration . l ••oclat1on 'ball .ach appoint an add1tional arbitrator witbln

12 bour• • tt., rec.ipt of .~eh de.l~d tor arbitration. fh.r.

aball be ~o ~r'-~ ••r1ftC d1Ico.erJ, and the arbitrator. aball

eOfty.ct to ••ar \he dl.~ut. or ellS- vttb1n 2' bour. att.r

receipt or Iucb demand tor arbitration. fbi b.lrinl 'hill ~ot be eODtl~u.d or rec•••• d, end .ach part, Iball ba.1 Oft. bour .rter

co••tnc ••tnt of tbe b.ar1~1 to ,re.tnt oral and docu••ntlry

e.1dtcce. The arbltratorl .hall announce an aw.rd to tb. partSes

bJ ttle~ho"e or 1" ptrlon within one bour arter conclullon or the ••r1nlt .hall enter an award in vr1tlDI wltbln 2- bour., and

.hall ••rte ~ot1oe thereof in vr1tlftl U~OD eacb or the parties

th.reto. the ~.rti.a thereto aKr•• to abide by all avard.

rendered 1n .uch arbitration proc••dlnl" and all lucb avardl

and d.c1.1o~1 ." be tiled bJ the ,r.v.l11cl ,arty with any court

of ooapettnt Juriadlctlon ., a b••l. tor 3udC•••ftt aDd the
..-• e • .-.

S•• alnce of eseoution \bertoD. Suob 3udl•••ftt .ball Dot bl opln

to r.,1Iv except to tbe eztlnt ,Iraltted bJ thl F.deral luI•• or

Ct.11 'rocedure. tbe re.a or tbt arbitrator(.', attorn., t••• and related espena•• or arbitration ahall 'I awarded to 'be

,reY'SlinK ,art, •• deter.inld br tbe arbltrator(.'. Sa addltloD

to aD, otber relief '0 whioh tbt prl••SliD, part, S. otbervi•• • Dtl~l.d.

". MISCELL1WEOUS '~O'ISIO.S

20.0'. a~~1ticn.l Acticn, aftd »oeueentatfcftl. lach ot

the ,.rti" b,reto aIr••• ~o take or oau •• to ~. taktn .acb

lurtbtr actiofta. to extout., del1.lr and Ill' or .au.' to be

ezecuted, dell"rld and liled laeh further 'OCU.'Dt., and to u,e

tbeir , ••t .ttortl to obtain .uoh oon.tnt., •••IJ b' n.e••••rr

er •••a, b. r ••loDabl, riQui.t.d 1ft order to tYl1, efr.ctuate

tbe purpoI••• t.r•• and condttiofta or thil ACr••••nt. Such

actton••hall include wltbout l1a1tatlon full, and .ttectlytly

re.l.tina and d.ttndlnl Icalnat an, actton br an, third ,arty which would Snt.rtere with tbe full and t1a.l, ,trtor.anci or ~h1. Aar•••• et by Hot.l.

20.02 Notieel. 111 mottee., dezlndl, r.Que.tl or oth.~

to••~~1c.t1on. r.llt1ft. to t~1. ACr••••nt .ball bl 1n vrltlnc and

aball bemail.db1t1r.tcla••• rt.ilt.rtdorcert1fitd.a11.

return r,ct1~t r'Qut.ttd, ~O.t'I' prepaid, or tranl:1tt.d by ~.nd

del1wlr,. t.l.~ra= or ttl.s, addr•••ed 8. tollow.:

It to Botel: Mr. 1111 Ibodl.

M.clonal '.P. , Mlnlclci »1rectcr

BYltt ItClnc, ltll~t.

265 Plachtre. Strl.t, i.E.

Atlanta, 0& 30303

Telephone: (~O.) 571-123'

t.lex 10.: 5-2-85

W1th a copy (wbich ahall mot oocltltute zotte,) to:

t.le1)hont:

t.l.z loa

It to ~);CCs

t.le~hon.:

telex 110.'

Irlan I. Ga.acbl ~lr.ctor or lall' I Mlrkitici

B,ltt 1lllac, Atlacta

265 P.achtr•• Streit, I.E.

Atlanta, G1 30303

(.0.) 577-123'

5-2'85

,'88 ~e.oer.tic I.tional Con,ention

CODlt1tt.e, IDO.

-30 So~th C.~1tcl Street, S.E.

Vaahlnctcn, ~.c. 20003

Atttntion: Uraula Cul'tr, Coctroller

( 2 0 2) 86 3• eo 0 0
-- ,

-... .

-. •

With 00,1•• (wblob .ball .ot eoeatltut. eotSo.' to,

Tel.pboae,

telephoDe:

'aul Ilrk, ~r., Pr••ideD'

1S88 ~e.ooratl0 .atloDa1 COD••Dtloa

Co••ltte., 1.0.

'30 loutb Capitol Str.et. a.l. - Va.hleltoll, D.C. 20003

(202) 1'3-1000

~o.epb A. IS •••r, Jr•• alQuir.

at"eral COGD••1

D••oorattc Iittonal COD.efttloft

0/0 Ited aalth Shav I HeCla,

"SO COftDeotSeut j ••aue, I.V.

lutt. '00

V•• ~lftltODt ».c. 20036

( 2C2) • 5., -6 , 00 .

lach ,art,'. addr•••••, 'e chanled " written DottO' to ~be ether ,ar~J. lach ~otlc., dt&and, requa,' or other

coa.unicltlcn t~.n••1tt'd lz the .Inner d•• crlbed abo•• ahall be

d••••d 8utl1cltntl, 11•• n, ••r••d, •• nt end r.cll•• d tor all ~urpo••• at lucb t1 •• a. it 18 d.ll••rld to t,be .ddr••••• (with tbe r.tur~ rec.lpt. the dll1.erJ r.c.lpt. and the .frSdavit of •••••na.r or (with r ••pect to • t.lex) tbe an.ver 'Ick ,.1DI

1•••• d eoncluI1•• -v1dence or lueh d.ll••rJ) or at .uob t,1.e •• ~.11Y.r7 11 r.ru•• d by tbe .ddr••••••

20.03. Sf~trab111t7. It an, proTl.10n or tbl1 .l~e••ent or 'ftJ otber .Jr••••nt, docu••nt or vr1tlDI Il•• n

,arluant to or in connection with tb11 Acre.alnt .hall b. inYalid

or Gnenforce.ble under .~pl1eabl1 lav, auch ~roYl.1on .hall b.

Sftettectl•• to the extlnt or .uch 1n.alld1t, oe11 witbout 1a any ••, .rtectici tbe r •• a1nlDI ,rovS.1oDI or th11 A'r••••Dt.

20.0'. Sur.1••1. &11 eoe••nant., .Ir••••nt••

.tat••ent., repr'ltntat1onl, warrant1 •• aDd Sad••Dltl•• aad. 1n ~hla jer••••nt ahlll lurv1YI the el.cutlon and d.ll••r, or tbi • • ar••••Dt and .nJ iftv ••t1Iatlon. audSt or 1Dlpect1oD ••de " any otber ,art,.

20.05. Wa1Y.r. ..1lber \he .at.er bJ either part,

.ereto of • ~r •• ch of or default, Gnder anJ or tbe ,royl.1onl or

thl. 'Ire.a.~tt ~or the failure ot eltber ,art, to enforce an1 of

the ,roYSaloaa or th1. ACr••••nt or to'ez.rcl•• aft1 r11ht to ~r1Y11.ce bereund.r ahall th.r.after be conatrued .a a wa1 ••r or

an, lub,lqulnt breach or default or ••1.l1ar Dltart or .a a

va191r or any other provS.lonl, r!chtl. or ~rlYll.Ct' ber.under. -'0 fallure or dell' on the ,art or an7 ,art, in el.relalnc any

r1«ht. ,over or pri'11". her.under .hall operate ••• waiyer ~b.reot•

20.06. '.s1snetnt and 11nd1nc Erreet. Tbl1 Alr.,ment

.b.ll be 'lndlnl u~cn and ahall insure to the benefit or th,

,artl•• ~.r.to .nd their r ••peet!•••ucce ••or••nd I ••lena,

,royld.d that thS. Alr•••• nt .hall Dot be ••11Inable bJ ID1 partf V1tbout the prior written coft.tnt or th. other ,artS'. btreto

except, 1ft tbe ea •• or a ••lln••nt by ~NCC, to another ... ----~-_.... --.,- .. - - ..... -
• . .. . ..

20.01. A.eftd•• ~t. 10 •••nd••at. aod1tloltioft or

'lacbarle or tbtl ',r••ment. and DO .as••r btrlunder, aball •• 9alid or 'lDdSftl UD1 ••• I.t fortb 1ft wrl~Sftl .nd dul, ••Iouted b,

i •• ,art, a,llaat .boa .aCoroe••at tberlot ia loucbt.

10.08 'Intire Arret.tnt. fbi. Alr••••at (lnoludlal 'b.

IzblbS\orl ••reto) oon~tStut•• tb. eatSre Aar••••nt ••Oftl 'b.

,lrtS,a ~.r.to vSt~ r •• p.~t to tb, lubj.ct .Itter .er.to, aDd it

lupera.d•• all prior oral or written .Ir••••nt•• oo••lt.'Dta,

andlrataadlDCI or ,ropo••ll witb re.p.ot '0 tbe •• t~.r. ,ro.Sdld

tor ~er.11l.

20.09. • •• dl~I'. 'arlcrapb '.edSBI' GontaSald iD 'bl, ••r ••••ftt are Sft••rt.d tor ooft"D1'Dt rlt.rlDCI oD1J••ball Dot •• d••••d '0 '1 • ,art of tbtl jer••••Dt for an, pwrpO ••, e~d

.hall Dot 1a aftJ va, deriDe or att.ot \b•• '1~1ftl, ooftltruotloa

or acope or a~1 or tbe prov1a1cD. '.rlot.

20.10. Co~.rn1n! Llv. fbia 'Ir••••Dt. 'b. r1lht. aDd eb1S~.tio~. or tbe partS •• ber.to, end a~J dSaput•• or 01a1•• rel1t1ftl ~h.r.tot ahall be ,c••rn.d b' aDd oOD.tru.d in

accordance vStb th. lava or G.orl1a (but Bot 1ccl~d1DI the

obo1c.-ot-lav rul•• tber.ot).

-T

-0

20.". Exeeuttcn in Counterpart.. fhi. 'Jrl••tnt .11

.e es.cuted 1ft .1 .an7 counterplrt••• alf be d••1r.d, and it

.hll1 ect be ~ec ••••ry that the 11lftature. ot, o~ Oft behllf ott

.acb ,.rt, .~~~Ir en .ach oou~t.r~lrt. It ahlll Bot b. n.c•• alrf

1ft .akl nl proot er th1. Aer•••• nt to product or .ccou~t tor .or.

tban • ftu.btr of counttr~.rt. contain1nl the r.apectt•• _1ID.tur.1 ot, or on behalf or. all or tbe ,arti•• btrtto.

20.'2. Indeen1r1elt1on. 'he Hot.l Ilr••• to d.r.n~t

1~de&n1t7 and bold harml,•• DNCC, tb. De.ocretie 'art" tbe ~NCCt

the Co::1tt•• on lrr.n~.=ent., and the Slte.Sel.ettoft Co.~ltt"t

tOlether with their atr111ated ore_nil'tion., director.,

oftic.r., •• ~loJ"'t 'Ientl, attorn.,., Yolunt••r., oon.ultantl

aDd co~.ult1nl Itltt (th. ·IndtEclt•••·). al11nlt and troa any

aDd all l1abl11tlt •• obl11ltlonl. dl.IC'" ,tDeltS••, 01a1••• eo.tlt obara.' and .z~.n••• (lcclud1nc Iccountant and attorn.,'.

t ••• ) vblcb .1' ,. i.po •• d apon. incurrtd bJ or .••••rt.d .&11nlt

tbe Ind.cn1t••• in aD7 .Inn.r arillci out cr tb. pertor••nct or ~r •• cb or tbt lot.l'a obll<fon. and rtpr••• ntetien. und.r tbil

'Kr•••• nt or anJ oth.r actl or o&1.11on. or tht Hotel or it.

otticera t ••~loJ"" alenta or oth,rvi•• out or anr and all

act1y111 •• cont••plattd bl tb11 Acr••• eet.

20.13. the Bottl vlll d"lsnat. ~1 Janclr, " '988, • •• nler execut1Y' a. 111110n with ~HCC r ••peetinc the activities ~ont•• pllt'd bl the within Acree •• nt.
· .. "": . .. ...

II VItlESS VBEIEor. \b. ,arti•• 'aye ••u••• 'bla

jlr••••~t to •• dul, executed OD tbeir ~.b.lt •• of 'be date

11rat ~.r.lftb.tore ••t forth.

"11 »IMOCIltlC IitlOI1L CO.'I.tl0B COKMIttll, SIC

/1 / .s'rI" ,

C hlrcn Pra ».t.

Tr•••\2rtr ~EMOC!lTIC IATIONAL CORYEMTION COMMITtEE
· -~~c~-~"-;: -"" ;::. _::>~~;::C-\~~~:;:"__:-"'_=:<-:-C-'-- --'"~~:"'-'~--~:--~:~1f,_. - .-_. ft, t tachmen t I I I

f-~ge~. -1 0 f 6 r(~ _.. " -, -~ . - - ':.... , ~'1'

J',_

89 APR I7 ~:.: II: 11

Democratic National Committee

April 13, 1989

Federal Election Commission

999 E street, N.W.

Washington, D.C. 20463

Attention: Audit Division

RE: Interim Audit Report

Dear Sir or Madam:

On behalf of the 1988 Democratic National Convention

Committee, Inc. (the "DNCe"), I write to respond to the Interim

Report of the Audit Division on the 1988 Democratic National

Convention Committee, Inc. (the "report").

The report's findings resulted in two recommendations to the

DNCC. Each is addressed in turn.

The Audit Division's review of Convention contracts included

an examination of the contracts entered into by the DNCC and the

two co-headquarters hotels, namely the Atlanta Marriott Marquis

and the Hyatt Regency Atlanta. The staff noted that the two

hotels provided the DNCC with complimentary rooms to be used by

the DNCC both prior to and during the week of the National

Convention.

As the report noted, under Section 900S.7(c) (1) (i) of Title

11 of the Code of Federal Regulations, retail businesses (such as

hotels) may sell, lease or rent their products, materials,

services or space to the national committee with respect to a

presidential nominating convention at reduced or discounted

rates, provided that such reductions are in the ordinary course

of business. (See Advisory Opinion 1988-25) The report recommends

that the DNCC provide evidence to the Federal Election Commission

("FEe") that its agreements with the hotels, pursuant to which

the ONce was provided complimentary rooms, fall within th2

parameters of Section 9008.7. (c) (1) (i) •

In response to the Audit Division's recommendation regarding

the DNce's agreement with the co-headquarters hotels, the ONCe is

providing the enclosed statement by Arleigh Greenblat, General

430 South Capitol Street, S.E, Washington. D.C. 20003 (202) 863·8000

Paid for by the Democratic National Committee, Contributions to the Democncic National Committee

lIe not ax deductible as charitable conuibuuons for Federal income tax pwposes.
(-

Attachment III

page 2 of 6

Manager of the Democratic Party's 1988 National Nominating

Convention.

The second issue addressed by the report is the unspent

portion of the federal entitlement provided to the ONCe for its

National Nominating Convention pursuant to 11 C.F.R. 9008.3. The

report found that the unspent portion of the fund payment, as of

December 14, 1988, totaled $64,389. 70. The report recommends 1

pursuant to 11 C.F.R. 9008:10(e) (1) and (2) and 9008 .. 10(e) (9) (1)

and (2), that that unspent portion of the federal entitlement be

returned to the Secretary of the Treasury within 90 days of the

notice of the interim audit report.

Pursuant to 11 C.F.R. 9008e10(e) (g) (2), the DNCC may

request that it be given a 90 day extension of the repayment

period. The ONCe hereby formally requests such an extension.

pectfullYlsubmitted, : / I ,.

J /

" '. I , ','1 ~J", '/(JI r-Jl /1/} ( •• \ (, J"~ C r .lstl.ne arne-y I,

General Counsel (/

Enclosure
Attachment III

Page 3 of 6

BEFORE THE

FEDERAL ELECTION COMMISSION

Re: Interim Report of

the Audit Division

)

)

)

)

--------------->

File No. DNC/022789

STATEMENT OF

ARLEIGH GREENBLAT

1. I a~ presently self-employed as a consultant to

trade associations, labor organizations, large corporations, etc.,

and provide them general advice and assistance with respect to

making arrangements for their annual conventions, shows and

similarly large meetings. I have been involved in this line of

-~ work for apprOXimately 18 years.

2. During this period, I have acted as a consultant

o

with overall responsibility for some of the largest non-political

meetings in the United States. These include the annual meeting

of the National Education Association, a convention with

approximately 9,000 delegates and more than 4,000 other attendees.

I lecture often before groups regarding various aspects of

convention arrangements and am a frequent contributor of articles

on such matters to trade publications.

3. As part of my responsibilities in assisting

sponsoring organizations in making arrangements for their

conventions, I often negotiate the larger procurement contracts

with the principal vendors to such conventions, including

contracts with the headquarters and other host hotels. I also
Attachment"·!II

Page 4 of 6

have worked closely with the convention bureaus of the ma~or

cities in North America. As a result, I am quite familiar with

the standard discounts, complimentary services and other

prerequisites offered by convention bureaus and the hotel industry

in these cities in order to induce sponsoring organizations to

select their city and their hotel as the convention site.

4. In 1987 and 1988 I was engaged by the Democratic

National Committee to be General Manager of the Democratic Party's

1988 National Nominating Convention. Prior to that, I was its

principal consultant in evaluating the proposals (and associated

costs, including hotel costs) submitted by the various cities

competing to be selected as the host city for the 1988 Convention.

5. As General Manager for the Convention, I had

overall responsibility for identifying and evaluating the

principal vendors offering to supply goods and services to the

Convention and personally negotiated many of the major contracts. C

In particular, I was one of the principal negotiators with respect

to the agreements with the Party's headquarters hotels. In that

role, one of my principal responsibilities was to advise senior

Convention officers of the commercial reasonableness of the terms

offered by the various hotels in light of the standard practices

in the industry.

6. It is typical in the industry for headquarters

hotels to offer various inducements to sponsoring organizations in

order to gain the business. Included among the i~ducements often

offered are free rooms during the event period (at the rate,

depending upon the circumstances, of 1 for each 40 to 50 rooms

-2-
At ~2-c~n~e-nt- ~111

Page 5 of 6

reserved), a certain number of free rooms for use by event

planning staff before the event itself, complimentary use of

meeting rooms, complimentary set-ups and equipment drayage,

-reduced labor charges-at certain food and beverage receptions,

etc. The extent to which such services are offered on

complimentary basis depends on a whole range of factors, including

the expected attendance, the anticipated profit on other services

offered by the hotels, the degree to which the event is held

during a period of the year when business would otherwise be slow,

etc.

7. In my opinion the negotiations of the agreements

with the headquarters hotels were conducted on an arm's length

basis in a fashion typical in the industry. In short, these were

difficult, tense negotiations in which the hotels tried to concede

as little as possible consistent with retaining the business.

8. In my opinion, the arrangements with the host

hotels were well within the letter and spirit of 11 C.F.R.

§ 9008.7(c}(1)(i), which permits discounts and rate reductions in

the ordinary course of business. In no event were the

complimentary services afforded by the hotels greater than what

would have been expected for a non-political convention of similar

size and business potential, especially since the Convention was

scheduled for a hot summer month in a southern city, where it can

be expected that business would otherwise be slow and the

merch~~ts otherwise eager for patronage. Indeed, if anything, the

contrary is true because, since there were very few hotels

(particularly unionized hotels) available which were suitable as

.., . .,)-
Attachment 111-

Page t of 6

headquarters hotels, the Party's bargaining leverage was weaker

than I would have hoped for in light of the volume and

profitability of the business which the hotels could expect, and

the proposal offezed by the haters reo-fleeted that.

9. The free rooms which the hotels provided were well

within industry norms, particularly in light of the other services

which were not offered on a complimentary basis. For example,

under the agreements the hotels did not offer complimentary

dinners or receptions or complimentary drayaqe of furniture,

although these are frequently offered in the industry. Further,

because the Hyatt Regency had other commitments for its public

space, it could not offer much such space on a complimentary

basis, contrary to normal practice; and the number of

complimentary rooms offered by it reflected that deficiency.

Similarly, the Marriott Marquis had very limited public space; and

its undertaking to convert a certain number of sleeping rooms to

such use was a reasonable accommodation to comply with normal

industry practices.

-4-
o

Democratic National Committee

September 25, 1989

Mr. Robert Costa

Audit Division

Federal Election Commission

999 E street, N.W.

Washington, DC 20463

Dear Mr. Costa:

I am writing in response to your letter of August 23, 1989. You

have requested additional information regarding the contractual

arrangements between the Democratic National Convention

Committee, Inc. and both the Atlanta Marriott Marquis and the

Hyatt Regency Atlanta.

Enclosed you will find the requested information in the form of a

letter from the Director of Convention services at each of the

respective hotels.

Should you require any further information on this matter, please

feel free to contact me.

Sincerely,

0;/) .J:)i fA I( /~ Blli'-Cross

staff Counsel

430 South Capitol Street, S.E. Washington, D.C. 20003 (202) 863-8000

Paid for bv th~ Democratic National Committtt. Contributions to the Dcmocnoc National Committee

'are not tax deductible as charitable contributions for Federal income t2.X purpo5CS.
ATLANfA

.,Marriott M~QUIS

Mr. William Cross

staff Counsel

1988 DEMOCRATIC RATIONAL

CONVENTION COMMITTEE, INC.

430 South Capitol Street, S.E.

Washington, DC 20003

Dear Mr. Cross:

Attachment!V

Page 2 of 3

september 19, 1989

T

,-"..

For the purposes of an audit being conducted by the Federal

Election commission, you have asked that I outline the

arrangements made between this Hotel and your Committee regarding

last summer's national convention. You have asked, in

particular, for information regarding the complimentary rooms and

public space provided to your Committee.

1. The Marriott Marquis has a well established policy of

providing complimentary quest rooms, ballrooms, banquet rooms and

common space to groups holding large conventions in our hotel.

All such complimentary space made available to the Democratic

National Convention Committee, Inc. was made pursuant to this

policy and was consistent with the manner in which all such

conventions are handled. The amount of complimentary space given

a committee is determined by several factors including the size

of the groups and the estimated income to the Hotel from the

convention.

2. The commercial benefit received by the Marriott Marquis

far exceeded the value of the complimentary space provided to the

committee.

3.. The Marriott Marquis received no "political" benefit in

connection with hosting your Committee's convention. Any benefit

received by this Hotel was promotional and/or commercial in

nature.

Sincerely,

A MA.RRIOTT MARQUIS

I ,f~ 0~ Leroy Neal

Director of Convention service

265 Peachtree Center Avenue. Atlanu. Georgia 30303 (404) 521-ססoo
AYAn «c.GE'f~:P.~~~:Jt~' ..

IN PEACh7i;EE CPi:"::~

265 PEAC ";~EE SL NE

~TLANTA. GeORGiA 30301 USA

404 577 123J TELEX 542485

September 20, 1989

AttachmentIV

Page 3 of 3

. 'II)

'··0

Mr. William Cross

Staff Counsel

1988 Democratic National Covention

Commi ttee, Inc.

430 South Capitol Street, S.E.

Washington, D.C. 20003

Dear Mr. Cross:

For purposes of an audit being conducted by the Federal Election

Commission, you have asked that I outline the arrangements made

between this Hotel and your Committee regarding last summerls national

convention. You have asked, in particular, for information regarding

the complimentary rooms and meeting space provided to your Committee.

1. The Hyatt Regency Atlanta has a well established policy of

providing complimentary guest rooms and meeting space to groups holding

large conventions in our Hotel. All such complimentary space made

available to the Democratic National Convention Committee, Inc. was

made pursuant to this policy and was consistent with the manner in

which all such conventions are handled. The amount of complimentary

space given a committee ;s determined by several factors including the

size of the group and the estimated income to the Hotel from the

convention.

2. The Hyatt Regency Atlanta received no II po litical ll benefit in

connection with hosting your Committee's convention.

Any benefit received by this Hotel was promotional and/or commercial

in nature.

r.1(f~~ a~t r:cfav~ _ Dir~ctor 0 Convention Services

Hyatt Regency Atlanta

Atlanta, GA
o