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HomeMy WebLinkAboutC36700 - 2018 Craft Beer Event Contract No. C36700 STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: January 25, 2018 itk,W PREPARED BY: Amy Lawrence, Management Analyst Johnny Terfehr, Management Analyst REQUEST: Approval of 2018 Craft Beer Event and Sponsorship Recommendation By Minute Motion: 1. Approve Sponsorship Agreement with Acosta Promotions, Robert Acosta & Associates in the amount of $5,000 for a Craft Beer Event (name to be determined) at the Palm Desert Civic Center Park on Saturday, May 5, 2018; 2. Authorize Mayor to execute the sponsorship agreement and allow the City Attorney to make non-substantive changes; 3. Authorize expenditure in the amount of $5,000 payable to Acosta Promotions, Robert Acosta & Associates from Account No. 1104416-4306201 - City- Sponsored Events; 4. Approve temporary waiver to Palm Desert Municipal Code (PDMC) Sections: a) 11.01.020 (Hours of Use in City Parks); b) 11.01.080 (Prohibited Conduct Generally in City Parks, Item P - Limit Use of Park Amenity); c) 11.01.080 (Prohibited Conduct Generally in City Parks, Item Q - Vendor Sales); d) 11.01.080 (Prohibited Conduct Generally in City Parks, Item W - Possession/Consumption of Alcohol in City Parks) pursuant to PDMC 9.58.040; e) 11.01.100 (Obstructing Pathways in City Parks); and f) 11.01.140 (Amplified Sound in City Parks). Strategic Plan Objective Approval of the 2018 Craft Beer Event and Sponsorship would help address the following priorities outlined in the 2013-2033 Strategic Plan, Envision Palm Desert - Forward Together. - Economic Development - Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle. - Tourism and Marketing - Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year round destination. Contract No. C36700 January 25, 2018 - Staff Report Approve 2018 Craft Beer Event and Sponsorship Page 2 of 3 Executive Summary Robert Acosta & Associates (RAA) is requesting approval to hold a craft beer event (name to be determined) at the Palm Desert Civic Center Park on Saturday, May 5, 2018. The event would be marketed as the featured "First Weekend" event for the month of May and will include beer tasting, food vendors, pyrotechnics, and live entertainment. As a featured First Weekend event, staff is recommending approval of a $5,000 sponsorship to help offset the cost of police services and park use fees. Discussion Robert Acosta & Associates (RAA) has submitted a proposal to produce a craft beer tasting event at the Palm Desert Civic Center Park on Saturday, May 5, 2018. At time of writing this report, the name of the event has not yet been determined. RAA is an experienced event firm that has produced other local events with focus on raising funds for various charities. Outlined below are details of the May 5, 2018, event: • Proposed event hours would be 5 p.m. to 10 p.m. (subject to change) • The event area would be completely fenced in around the amphitheater and pond with several entrance and exit points that would be monitored by private security officers. All food, alcohol, and miscellaneous vendor booths would be located inside the fenced area. • The event would be open to all ages, not just 21 and over. • RAA plans to charge a reasonable entrance fee. They are currently discussing a fee schedule that would include separate admission rates with beer tastings, without beer tastings, and for children. • There will be live entertainment at the amphitheater and various types of aesthetic lighting with seating throughout the event area. • RAA is proposing pyrotechnics behind the amphitheater towards the end of the event. (The Palm Desert Fire Marshal said this won't be a problem as long as the pyrotechnics company pulls the required permits.) • Proceeds of the event will support the Desi Strong Foundation which helps children and families affected by childhood cancer. • RAA will be required to pay for at least four deputies and one sergeant from the Palm Desert Police Department to monitor public safety during the event. If the City Council approves the event, staff will work closely with RAA and other City departments on all needed inspections, permits, and approvals that will be required to move the event forward. Staff will also ensure that sufficient public safety services are provided during the event and that all insurance and ABC permits are in place. If the event is approved, RAA will immediately begin promoting it to Coachella Valley residents and visitors and to the regional drive market. As the featured "First Weekend" Contract No, C36700 January 25, 2018 - Staff Report Approve 2018 Craft Beer Event and Sponsorship Page 3 of 3 event for May, the event will also receive additional marketing and promotion throughout Southern California. Fiscal Analysis Considering the City's Strategic Plan objectives, a craft beer event could be a worthwhile addition to Palm Desert's event portfolio. While there is no way of knowing exactly how successful it will be, staff believes that an event of this type has the potential to draw a large number of attendees. Therefore, staff recommends approval of a $5,000 sponsorship to assist with the cost of police services, park use fees, and other costs associated with the event. Funds are available in Account No. 1 1 0441 6-4306201 (City-Sponsored Events). LEGAL REVIEW DEPT. REVIEW DEPT. FINANCIAL CITY REVIEW REVIEW MANAGER Approved Agreement Ryan Stendell Frankie Riddle Robert W. Hargreaves Director of Community Director of Special Janet Moore Lauri Aylaian City Attorney Development Programs Director of Finance City Manager APPLICANT: Robert Acosta & Associates 74-550 Fairway Drive Palm Desert, CA 92260 ATTACHMENTS: Draft Contract Contract No. C36700 DRAFT CONTRACT SPONSORSHIP AGREEMENT This Sponsorship Agreement ("Agreement") is entered into this 25th day of January, 2018, by and between the City of Palm Desert ("City"), a California public entity, and , ("Consultant"). The City and Consultant are sometimes collectively referred to in this Agreement as the "Parties" and individually referred to as "Party." The Agreement is made in light of the following Recitals: RECITALS WHEREAS, Consultant wishes to create an entertainment event entitled the " " to accompany First Weekend programing in Palm Desert. WHEREAS, the City desires to sponsor the event through funding a portion of the costs associated with the event. NOW, THEREFORE, in consideration of the mutual promises set forth herein, and in light of the above Recitals, which are hereby made a part of this Agreement, the Parties hereby agree as follows: AGREEMENT 1. Term: The Term of this Agreement shall commence on January 25, 2018 and continue until May 5, 2018 or upon completion of the event. 2. Responsibilities of the Parties: 2.1 Responsibilities of City: 2.1.1 The City shall within its marketing of First Weekend leading up to the May 5, 2018 event promote the event in its advertising and public relations efforts. In other advertising and public relations throughout the 2017-2018 events, the will be listed with all other community partners. 2.1.2 The City shall allow Consultant use of the Palm Desert Civic Center Park located at 73510 Fred Waring Drive in Palm Desert, California 92260, on Saturday, May 5, 2018. 2.1.2.1 Event location may be changed upon mutual agreement by both parties in writing. 2.2 Responsibilities of Consultant: 2.2.1 Consultant will produce all aspects of the . 2.2.2 Consultant will prominently feature Palm Desert and First Weekend logos in all advertising including all social media, website banners and e-blasts. Consultant will feature Palm Desert and First Page 1 of 9 Contract No. Weekend in all photo and video opportunities including signage and step-and-repeat back drops. 2.2.3 Consultant will grant access to all photography and video taken during the event to cross promote on the City's website. 2.2.4 Consultant will work with the Desert Recreation District on all necessary permits and pay all required fees associated with use of the Palm Desert Civic Center Park for the . 3. Compensation: The City shall pay Consultant a total of $5,000 in one payment by March 2, 2018. If insurance documents have not been approved by the City's Risk Manager by this date, check will be released upon final approval of all insurance. 4. Remedies and Termination: 4.1 Remedies: The Parties agree to provide each other with written notice of nonperformance, unsatisfactory performance, or any other dispute arising from the terms of this Agreement within ten (10) days of the deficiency or dispute being identified. The Parties shall have thirty (30) days from receipt of said written notice to correct any performance deficiencies. The Parties may mutually agree to extend the thirty (30) day cure period. The Parties agree to cooperate in good faith to resolve any performance issues or dispute arising from this Agreement. Either Party in its sole and absolute discretion may waive a default that cannot be cured. 4.2Termination: In the event any dispute cannot be resolved under these procedures, each Party retains such legal and equitable remedies as it may have under the law to enforce this Agreement. If either Party defaults under this Agreement and does not timely cure such default, the non- defaulting Party may terminate this Agreement upon providing written notice of termination of this Agreement to the defaulting Party, in which case this Agreement shall terminate. 4.3Temiination without cause: Either Party may terminate this Agreement upon at least ninety (90) days prior written notice to the other Party. If Consultant terminates this Agreement, pursuant to this Section 4.3, the City shall be entitled to a pro rata refund of any prepaid amounts. 5. Insurance: Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. 5.1 General Liability Insurance: Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per Page 2 of 9 Contract No. occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO "insured contract" language will not be accepted. 5.2Automobile Liability Insurance: Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. 5.3Workers' Compensation Insurance: Consultant shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers, agents, employees and volunteers. 5.4Umbrella or Excess Liability Insurance: Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer's liability. Such policy or policies shall include the following terms and conditions: • A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; and • Policies shall "follow form" to the underlying primary policies. • Insureds under primary policies shall also be insureds under the umbrella or excess policies. 6. Other Provisions or Requirements: 6.1 Proof of Insurance: Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsements must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. Page 3 of 9 Contract No. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 6.2 Duration of Coverage: Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Consultant, his/her agents, representatives, employees or subconsultants. 6.3 Primary/Non-Contributing: Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City's own insurance or self-insurance shall be called upon to protect it as a named insured. 6.4City's Rights of Enforcement: In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. 6.5Acceptable Insurers: All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 6.6 Waiver of Subrogation: All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, and shall require similar written express waivers and insurance clauses from each of its sub-contractors. Page 4 of 9 Contract No. 6.7 Enforcement of Contract Provisions (non estoppel): Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. 6.8 Requirements Not Limiting: Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 6.9 Notice of Cancellation: Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. 6.10 Additional Insured Status: General and automobile liability policies shall provide or be endorsed to provide that the City of Palm Desert and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. 6.11 Prohibition of Undisclosed Coverage Limitations: None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 6.12 Separation of Insureds: A severability of interests provision must apply for all additional insureds ensuring that Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer's limits of liability. The policy(ies) shall not contain any cross-liability exclusions. 6.13 Pass Through Clause: Consultant agrees to ensure that its sub- consultants, sub-contractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage Page 5 of 9 Contract No. and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, sub-contractors, and others engaged in the project will be submitted to City for review. 6.14 City's Right to Revise Specifications: The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant's compensation. 6.15 Self-Insured Retentions: Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self- insurance will not be considered to comply with these specifications unless approved by City. 6.16 Timely Notice of Claims: Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. 6.17 Additional Insurance: Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. 6.18 Safety: Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 7. Indemnification: Consultant shall indemnify, defend, and hold harmless the City of Palm Desert, its officials, officers, employees, volunteers, and agents from any and all losses, costs, expenses, claims, liabilities, actions, or damages, including liability for injuries to any person or persons or damage to property arising at any time during and/or arising out of or in any way connected with Contractor's activities under the terms of this agreement, unless solely caused by the gross negligence or willful misconduct of the City of Palm Desert, its officials, officers, employees, volunteers, or agents. Page 6 of 9 Contract No. 8. Force Majeure: Any delay or failure in the performance by either party hereunder shall be excused if and to the extent caused by occurrence of a Force Majeure. Force Majeure shall mean a cause or event that is beyond the reasonable control of the party claiming Force Majeure. Force Majeure includes but not limited to, acts of God, fires, floods, rain, heavy wind, earthquake, explosions, riots, wars, sabotage, terrorism, vandalism, accident, restraint of government, governmental act, injunctions, destruction of site and other like events. In the event City has advanced funds for the sponsorship to the extent not utilized directly for the event any unused portion shall be returned. 9. Notices: Whenever it shall be necessary for either Party to serve notice on the other regarding this Agreement, such notice shall be served either in person, by certified mail, return receipt requested to the addresses below. City: City of Palm Desert Palm Desert Civic Center 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Amy Lawrence Consultant: Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 10.Legal Costs: In the event of any legal action between the City and Consultant arising out of the obligations of the Parties pursuant to this agreement, the prevailing Party will be entitled to payment of its costs and expenses, including its reasonable attorneys' fees. 11.Binding Effect: Successors. Neither Party shall assign or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the other Party, which may be given in such Party's sole and absolute discretion. Any attempt to do so shall be null and void, and any assignees or transferees shall acquire no right or interest by reason of such attempted assignment or transfer. This Agreement shall bind and inure to the benefit of the Parties and their respective heirs, legal Page 7 of 9 Contract No. representatives, successors and assigns and all of the Parties thereto shall be jointly and severally liable hereunder. 12.Counterparts: This Agreement may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument which shall be binding upon the Parties notwithstanding that the Parties may not be signatories to the same counterpart or counterparts. The Parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart. 13.Further Assurances: Whenever requested to do so by the other Party, each Party shall execute, acknowledge, and deliver any further conveyances, assignments, confirmations, satisfactions, releases, powers of attorney, instruments of further assurance, approvals, consents, and any documents that are necessary, expedient, or proper to complete anything contemplated by this Agreement. In addition, each Party shall do any other acts and execute, acknowledge, and deliver any requested documents in order to carry out the intent and purpose of this Agreement. 14.Modifications: All modifications to this Agreement must be in writing and signed by the Parties. 15.Third-Party Rights: Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies. 16.Governing Law; Choice of Venue: This Agreement shall be governed and construed in accordance with California law, including the Fair Political Practices Act of 1974. Venue shall be Riverside County. 17.Severability: If any provision of this Agreement becomes or is declared by a court to be illegal, unenforceable or void, that clause will be omitted and the remainder of the Agreement will continue in full force and effect. Such holding shall in no way affect the validity or enforceability of this Agreement. 18.Entire Agreement: This Agreement is the entire agreement between the Parties and supersedes any prior or contemporaneous representations, understandings or agreements, whether written or oral. 19.Waiver of Jury Trial: The Parties specifically waive any right to trial by jury in any court with respect to any contractual, tortious or statutory claim, counterclaim or cross claim against the other arising out of or connected in any way to this Agreement because the Parties hereto, both of whom are represented by counsel, believe that the complex commercial and Page 8 of 9 Contract No. professional aspects of their dealing with one another make a jury determination neither desirable nor appropriate. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first hereinabove written. CITY OF PALM DESERT Sabby Jonathon, Mayor ATTEST: Rachelle D. Klassen, City Clerk CONSULTANT Name, Title Approved As To Form: Robert W. Hargreaves, City Attorney Page 9 of 9