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HomeMy WebLinkAboutC-7713-1 - Grant Agreement - Council Grant FY 2019-20 - 2019 Fourth of July Fireworks Event1 M (� GRANT AGREEMENT r BETWEEN THE CITY OF NEWPORT BEACH AND DUNES RESORT, LLC V This Grant Agreement ("Agreement") is entered into this 1 st day of July, 2019 ("Effective Date"), by and between the City of Newport Beach, a California municipal corporation and Charter City ("City"), and DUNES RESORT, LLC, a California limited liability company located at 1131 Back Bay Drive, Newport Beach, California 92660 ("Grantee"). City and Grantee are at times individually referred to as "Party" and collectively as "Parties" herein. RECITALS A. It is the policy of the City Council that the City's budget specifically allows the City Council to direct revenue towards non-profit agencies, community groups, community events, or enhancement projects with worthy projects or programs which the City Council deems beneficial to the residents' quality of life. B. Grantee requested a grant from the City for co-sponsorship of the annual 2019 Fourth of July fireworks event ("Grant Proposal"). C. On March 9, 1998, the City Council adopted Council Policy B-12, finding that the fireworks display is enjoyed by the citizens as a community and a family event. D. Consistent with Council Policy B-12, the City Council's approved budget for Fiscal Year 2019-20 includes funds in an amount between $20,000 and $40,000 which are sufficient to cover the "Grant Funds," as defined herein, for the City's 2019 annual fireworks event. E. The City Manager has approved a grant in the amount of Thirty Thousand Dollars and 00/100 ($30,000.00) ("Grant Funds") to Grantee pursuant to certain conditions regarding expenditure, reporting, and accounting requirements. NOW, THEREFORE, the Parties agree as follows: 1. GRANT 1.1. City awards to Grantee Grant Funds in the amount of Thirty Thousand Dollars and 00/100 ($30,000.00) as requested by Grantee in the Grant Proposal attached hereto as Exhibit A and incorporated herein by reference, or such other amount as authorized by the City Council. Exhibit A, including the "Production Agreement" therein, is attached solely for reference purposes and in no way does its attachment hereto signify City's approval of its terms or create a partnership or other joint venture between City and either or both of the parties to such Exhibit A. 1.2. Grant Funds shall be disbursed by City to Grantee as follows (select one): [X] At the time of execution of this Agreement. DUNES RESORT, LLC Page 1 2. TERM The term of this Agreement shall commence on the Effective Date and shall continue in full force and effect until December 31, 2019, unless terminated earlier as provided herein. 3. RESTRICTIONS ON USE OF FUNDS 3.1. The Grant Funds are subject to the following expenditure conditions ("Approved Uses"): 3.1.2. Pursuant to Council Policy B-12, Grantee shall ensure that City residents shall have free access to the event at which the Grant Funds are expended, with the exception of parking fees; 3.1.3. Pursuant to Council Policy B-12, Grantee shall ensure that the City is recognized as a co-sponsor of the event in all publicity and promotional materials for the fireworks display; and 3.1.4. The Grant Funds shall not be used for any activity that would violate City, state or federal statutory or decisional law such as regulations affecting non-profit or tax exempt organizations exempt from taxation pursuant to Section 501 (c)(3) of the Internal Revenue Code. 3.2. Grantee further warrants to City that the Grant Funds will be spent solely for the Approved Uses and the Grant Funds shall be used by Grantee during this Agreement's term otherwise the Grant Funds shall be returned to City, as provided in Section 5 below. 4. REPORTING AND ACCOUNTING REQUIREMENTS 4.1. At all times during the term of this Agreement, Grantee shall maintain true, proper, and complete books, records, and accounts (collectively, "Books and Records") in which shall be entered fully and accurately all transactions taken with respect to the operations of Grantee under the Grant Proposal and the expenditure of the Grant Funds. Grantee shall maintain the Books and Records in accordance with Generally Accepted Accounting Principles. Grantee shall make available to City such Books and Records upon City's request. 4.2. If the Grantee has been audited by an independent auditor or has been the subject of a compliance audit/examination by a grantee or regulatory agency during the past three years, audit reports and management letters indicating compliance violations, fraud, illegal acts, material weaknesses in internal control structure or reportable conditions, in connection with such audits shall be delivered to the City thirty (30) days prior to the effective date of this agreement. If no audits or events as described above have occurred during this period, the Grantee shall provide City a written assertion that no audits or similar examinations have occurred during the three (3) year period and an assertion that the Grantee is not aware of any events or conditions, described above, or DUNES RESORT, LLC Page 2 other information that might reasonable impact City's decision to fund the grant as requested. 4.3. City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the right to audit Grantee's accounting procedures and internal controls of Grantee's financial systems as they relate to the Grant Proposal and to examine any cost, revenue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representative(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Grantee agrees to fully cooperate with any such audit(s). 4.4. This right to audit shall extend during the length of this Agreement and for a period of three (3) years or longer, if required by law, following the date of any Grant Funds tendered under this Agreement. Grantee agrees to retain all necessary records/documentation for the entire length of this audit period. 4.5. Grantee shall, upon conclusion of the event, furnish the City with a Balance Sheet and Income Statement describing the receipt and disbursement activities of Grantee with respect to the Grant Funds. In its sole and absolute discretion, the City may also require Grantee to submit: (i) quarterly check registers and descriptions of each disbursement; (ii) budget -to -actual -results; and (iii) a statement of position describing the assets and liabilities associated with the Grant event. All reports, including a post -event evaluation, shall be due to the City no later than forty-five (45) days following the conclusion of the event. In the event that an independent audit is conducted, Grantee shall forward a copy of the audited report to the City for review, including any Management Letter, Report on Internal Controls, or Reportable Conditions letter generated during the course of the audit. 4.6. Grantee agrees to exercise prudent financial management processes including proper oversight of all assets, budget preparation, and timely reporting including budget - to -actual -comparisons. 4.7. All Approved Uses shall be performed by Grantee or under Grantee's supervision. Grantee represents that it possesses the professional and technical skills required to perform the services required by this Agreement, and that it will perform all services with a standard of care and in a manner commensurate with the community professional standards and with the ordinary degree of skill and care that would be used by other reasonably competent practitioners of the same discipline under similar circumstances. 4.8. If Grantee has supported Political Action Committees(s) (PACs) during the past three (3) years, the Grantee shall hire an independent auditor to perform limited, agreed- upon testwork procedures to provide City assurance that City sponsored event profits did not subsidize the funding of Political Action Committees (PACs) and event proceeds were adequately segregated from funds used to support PACs. Agreed upon procedures may include a review of a detail list of the past three (3) years of PAC contributions and expenditures, including: DUNES RESORT, LLC Page 3 a. An identifying donor number, date and amount of each reported contribution; and b. A detail of expenditures sufficient enough to determine that the expenditures were solely for PAC -related expenses; and c. Any retained earnings or fund balance at the end of each fiscal year. Substantive documentation for the contribution and expenditure should be available upon request. City shall approve the agreed-upon testwork procedures prior to the commencement of fieldwork. 5. USE OF GRANT FUNDS 5.1. The Grant Funds shall be used solely by Grantee for the Approved Uses and for no other use. In the event that the Grant Funds are not used for the Approved Uses or are not expended by or before December 31, 2019, Grantee shall notify the City in writing, and shall be obligated to return the Grant Funds to City within thirty (30) days. 5.2. The City's grant contribution shall only be used for non -secular purposes. Grantees shall not use the City's grant contribution, or any portion thereof, for any purpose that violates local, state, or federal law, including, but not limited to, the Establishment Clause. 6. INDEMNIFICATION 6.1. To the fullest extent permitted by law, Grantee shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to this Agreement (including the negligent and/or willful acts, errors and/or omissions of Grantee, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). 6.2. Notwithstanding the foregoing, nothing herein shall be construed to require Grantee to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Grantee. DUNES RESORT, LLC Page 4 7. INSURANCE Without limiting Grantee's indemnification of City, and prior to commencement of the Approved Uses of the Grant Funds, Grantee shall obtain, provide, and maintain at its own expense during the term of this Agreement or for other periods as specified in this Agreement, policies of insurance of the type, amounts, terms, and conditions described in the Insurance Requirements attached hereto as Exhibit B, and incorporated herein by reference. 8. GRANTEE INDEPENDENCE In the performance of this Agreement, the Grantee, and the agents and employees of Grantee, shall act in an independent capacity and are not officers, employees or agents of the City. The manner and means of performing the Approved Uses are under the control of Grantee, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Grantee or any of Grantee's employees or agents, to be the agents or employees of City. Grantee shall have the responsibility for and control over the means of performing the Approved Uses, provided that Grantee is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Grantee as to the details of the performance or to exercise a measure of control over Grantee shall mean only that Grantee shall follow the desires of City with respect to the results of the Approved Uses. 9. PROHIBITION AGAINST TRANSFERS Grantee shall not assign, sublease, hypothecate or transfer this Agreement or any of the services to be performed under this Agreement, directly or indirectly, by operation of law or otherwise without prior written consent of City. Any attempt to do so without written consent of City shall be null and void. 10. NOTICES 10.1. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the third business day after the deposit thereof in the United States mail, postage prepaid, first class mail, addressed as hereinafter provided. 10.2. All notices, demands, requests or approvals from Grantee to City shall be addressed to the City at: Attn: Management Analyst City Manager's Office City of Newport Beach 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658-8915 DUNES RESORT, LLC Page 5 10.3. All notices, demands, requests or approvals from City to Grantee shall be addressed to Grantee at: Attn: Michael Gelfand DUNES RESORT, LLC 1131 Back Bay Drive Newport Beach, California 92660 11.TERMINATION 11.1. Termination for Cause. Grantee shall be in default if Grantee fails or refuses to perform any duty required by the Agreement or performs in a manner inconsistent with the terms, conditions and restrictions in this Agreement. In such event, City shall give Grantee, thirty (30) days written notice to cure, if the default can be cured and City shall be entitled to terminate this Agreement if Grantee has not cured the default within the thirty (30) day cure period. City shall be entitled to immediately terminate this Agreement if the default cannot be cured through corrective action. If terminated for cause, Grant Funds shall be returned to the City pursuant to Section 5. This Agreement is made on an annual basis, and as such is subject to non -renewal at its termination. 11.2. Termination without Cause. City may terminate this Agreement at any time with or without cause upon seven (7) days written notice to Grantee, any remaining Grant Funds in Grantee's possession at the time of termination shall be returned to City pursuant to Section 5. 11.3. Specific Performance. Grantee agrees that the City has the legal right, and all necessary conditions have been satisfied, to specifically enforce Grantee's obligations pursuant to this Agreement. 12. STANDARD PROVISIONS 12.1. Recitals. City and Grantee acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 12.2. Compliance With all Laws. Grantee shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 12.3. Waiver. A waiver by either Party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 12.4. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. DUNES RESORT, LLC Page 6 12.5. Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Grant Proposal or any other attachments attached hereto, the terms of this Agreement shall govern. 12.6. Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 12.7. Amendments. This Agreement may be modified or amended only by a written document executed by both Grantee and City and approved as to form by the City Attorney. 12.8. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 12.9. Controlling Law And Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 12.10. Equal Opportunity Employment. Grantee represents that it is an equal opportunity employer and it shall not discriminate against any contractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age or any other impermissible basis under law. 12.11. No Attorney's Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorney's fees. 12.12. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. [SIGNATURES ON NEXT PAGE] DUNES RESORT, LLC Page 7 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 6/z 6j 0 By: 04q, JwG� �f• Aaron C. Harp City Attorney ATTEST - Date: By: V Leilani I. Brown City Clerk Attachment: Exhibit A: Grant Proposal CITY OF NEWPORT BEACH, A California municipal corporal Date: CiA : i /Z J019 GraLeung City anager GRANTEE: DUNES RESORT, LLC, a California limited liability company Date: By: Vl� Michael Gel n Manager Date: Signed in Counterpart Michael Silverman Manager [END OF SIGNATURES] DUNES RESORT, LLC Page 8 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATT R EY'S OFFICE Date:6 0 By: 1)�� 7A,Li� Aaron C. Harp 5-6,11 In) City Attorney ATTEST: Date: By: Leilani I. Brown City Clerk Attachment: Exhibit A: Grant Proposal CITY OF NEWPORT BEACH, A California municipal corporation Date: By: Grace K. Leung City Manager GRANTEE: DUNES RESORT, LLC, a California limited liability company By: Michael Gelfand Manager Date: D D Michael Silverman Manager [END OF SIGNATURES] DUNES RESORT, LLC Page 8 Exhibit A DUNES RESORT, LLC Page A-1 2019 Pyrotechnic Proposal SPECTACUIARS Newport Dunes July 4, 2019 tr Yr . r — Al i February 6, 2019 (Newport Dunes Helene Rochman 1131 Back Bay Drive Newport Beach, CA 92660 Dear Ms. Rochman, Pyro Spectaculars, Inc. is happy to provide our pyrotechnic proposal for your July 4, 2019 event. The following proposal outlines your custom designed Sky Concert*" Program "A" for the amount of $32,500.00. The various fireworks elements provided are prepared to shoot from (Newport Dunes Waterfront Resort for approximately 18-20 minutes. Our full service program includes music production and choreography, the services of a licensed pyrotechnic operator, specialized crew, an electronic firing system, and safety equipment used for support and protection. The price also includes insurance coverage, sales tax and delivery. To help ensure public safety, we work directly with the local fire authority while we apply for all the necessary fire department and other fireworks related permits. Our winning combination of products, people and production capabilities help produce the safest fireworks entertainment package possible. Your organization will be responsible for payment of all Fire Department permit fees and/or standby firemen fees, if any, The Fire Department may bill you directly for any additional standby fees for inspections. Your organization will also be responsible for providing the display location and all necessary security for the display site. Enclosed you will find a Product Synopsis, Production Agreement for signature and Scope of Work. Please have one copy of this fully executed agreement returned to our office by April 2, 2019 along with your deposit and applicable fire department fees. Please take the time to review this proposal in detail. If you wish to discuss any changes in your program or need more information, please call either myself or your Customer Service Representative Maria Barajas at (909) 355-8120 ext. 231. Sincerely, PYRO SPECTACULARS, INC. Jef<FM.��'Tin Sales Manager JM/mb Enclosures Pyro Spectaculars, Inc, P.O. Box 2329 • Rialto, CA 92377 • Phone: (909) 355-8120 or (888) 477-PYRO o Fax: (909) 355-9813 Product Synopsis • Pyrotechnic Proposal Li t' O'dNes $32,503,00 Main Body - Aerial Shells Description Quantity ♦ 3" Sky Concert Selections 150 ♦ 4" Sky Concert Selections 100 ♦ 5' Sky Concert Selections 75 Total oF illain Body-.leria! Shells 325 Pyrotechnic Devices Description Quand hr i Sousa Platinum Line Custom Multishot Device 500 Shots i Sousa Diamond Line Custom Multishot Device 1500 Shots ♦ Sousa Emerald Line Custom MuRishot Device 600 Shots ♦ Sousa Pearl Line Custom Multishot Device 800 Shots Grand � ina?e Descriotion ♦ 2.5" Sky Concert Bombardment Shells 72 3" Sky Concert Bombardment Shells 180 ♦ 4" Sky Concert Bombardment Shells 60 5" Sky Concert Bombardment Shells 15 oial of ';�I'a.n. •:i il"1 ]le ', C7 Pyro Spectaculars, Inc. P.O. Box 2329 Rialto, CA 92377 Tel: 909-355-8120:::: Fax: 909-355-9813 PRODUCTION AGREEMENT Newport Dunes Program .A July 4, 2019 Page I of 4 This agreement ("Agreement") is made this __day of __- collectively ac "Parries" herein. ,_--_:019by and between Pyro Spectaculars, Ire., a CalifMin corporation, hereinafter refcned to as ("PYRO") and Navporl Duocs, hemioo0er referred to as ("CLIENT'). PYRO and CLIENT mm e soctimes referred to as "Pavy" nr 1. Feneaaemem - CLIENT hereby engages PYRO to provide in CLIENT one fitewnrks production ("Pmduclion"), and PYRO accepts mich engagement upon all o(the promises, tarns and conditions hereiw0cr set forth. no Production shall be substam!mlly as uutined in Pmgmm -A".attached hereto and incorporated herein by this reference. 1.1 PYRO Duties PYRO shall provide all pyrotechnic equipment, [mined Pyrnttehniciams, shipping, pyrotechnic products, application for specific pyrot«hniu peonies (the cost of which, including standby fees, shall be paid by CLIENT) relating to [Ile Production, insurance covering the Production and the Calm" things on its pin to be performed as more specifically set forth below in this Agitations and in the Scope of Wait( ("Scope of Work"), attached herein, incnrpomlcd heroin by this reference, and made a Pon of this Agreement as dough set forth fully herein. 1.2 CLIENT Duties- CLIENT shall provide to PYRO a suitable site (,,Site,,) for tiro Production, security for the Site as set forth in Paragraph 6 hereof, aces to the Site, any permission necessary to utilize die Site for tie Production, and the other things on its pan to be performed as more specifically set forth below in this Agreement and in the Scope of Work. All Site armngemems arc subject to PYRO's reasonable approval as to Pymteclmic salary, suitability, and security. All other conditions of the Site shall be the responsibilily of CLIENT, including, but not limited to, access, use, control, parking and general safety with respect to the public, CLIENT personnel and other cuwactora. 2. Time and Place - The Prodw:tion shall take place on July 4, 20t9, at approximately 9:00 V.m•, at Newport Dunes. lVaterfrorl Resort 1131 Back Bnv Drive, Newport Ocnch, CA, Site. 3. Fees. Interest. and Expenses - 3.1 Fec-CLIENFagrnstopay PYROafeeofSc"OSD(THIRTYTIVOTIIDUSAND FIVE HUNDRED DOLLARS)("Fee")for the standby es, spe ifed p l pay to PYRO S16.sso.doUSD (Nix I KEN THOUSAND TWO HUNDRED FIFTY DOLLARS of—the Fee plus tatim0[ai permit and sit ("D Pecs, specified production costs- and other mgulamry oasis approximated at 92 00 OR an amount to be determined, (ora [mal ofS17.042.00, as a deposit ("Depruir') upon the execution of this Agreement by both parties but no lata than April 2.2019. The balance of dee FCC shall be paid nu lam than July Sy20i9. CLIENT au1110112eY PYRO to receive and verify credit and financial infunnation Concerning CLIENT from may agency, person or emily including but not limited to credit along agencies. The "PRICE FIRM" date, lite date by which file executed Agnu neal must be delivered m Pym, is set forth in paragraph 20. 3.2 Interest - In die event Nat lite Fee is not paid in a timely manner, CLIENT will be responsible for the payrnenl of !..1% interest permonth or 18%annually on the unpaid bolonee If litigation arses mut of this Agreement, the prevailing pony shall be entilled to reasonable costs incurred in connection with the litigation, including, but not limited to annoys' Ices. 3.3 Expouses- PYRO sholl pav all normal expenses directly retired to the Prodintion including freight, insunmce as outlined, pymleclutic products, pyrumbnie equipment, experienced pyrotechnic personnel to set up and dischargelhe pyroleehnies and those additional itens ns adlined as PYRO's responsibility in the Scope of Wnrk. CLIENT shall pay all costs related to the Production not supplied by PYRO including, but nor limited to- dnose items mourned as CLIENT's responsibility in this Agreement and Scope of Work. 4, Proprietary Rim - PYRO represnns and warrants that it owns all copyrights, including performance rights, to this Production, except that PYRO does not awn CLIENT -owned material or thirdyarty-owned material that has been included in the Production, and as to such CLIENT -owned and [ilial-pirty- Pwned material, CLI at PYRO u hr fun responsibilityacqior inanytherefore. CLIENT agrees that PYRO shall retain ownership of, and all copyrights and other tights to, the Production, except that PYRO sludl nrol acquire or retain any Owners ENT uruther rights in or to CLIENT -owned material and Ihind-parry-owned material oral shall tar be responsible in any way for such material. If applicable, CLIENT consents to the use o(CI.IENT-owned material and represents that it hot or will Chain any patnission ham oppmpaiate third Parties sulficicnl to authorize public exhibition orally such material in connection with this Production. PYRO reserves the awneshiP rights in its wade names lital ore usW in or arc a pmducl of the Pmductmm Any reproduction by sound, video or other duplication nr recording procers without the express whilmn permission or PYRO is prohibited. 5. Safety - PYRO and CLIENT shall each comply with applicable federal, gale and local laws and regulations and =Ploy safely Programs and mctsmes consistent with mcognized applicable industry slondants and Practices. At all times before and during the Production, it shall be within PYRO's sok dixrv/ion In detemdue whether or not the Prodncholl may be solely discharged or continued. It shall not constitute a breach Of this Agreement by PYRO for fireworks to fail a' malfunction, or for PYRO to determine that the Pmduction cannnl be llWrmged or cuntinuW as a result of any conditions orcimumslances affecting safety beyond the onssemable control of PYRO 6. Soeurl[v - CLIENT shall provide adequate security personnel, barricades, and Prdicc Ilepamnen services as maybe necew ty to preclude ind;vidua!s Mile than those authorized by PYRO from entering an area to he designated by PYRO as the rate for he sin -up and disclarge of the Production, including a fallout arta smi.sfactary• m PYRO where the pyrotechnics rimy safely rise and any debris nay soh"dy tall. PYRO shall have no rapnrtsibiliiy for monitoring oI contralling CLIENT's other connactum. providers or volunteers; the public, jars to which the public or cummilors have access; m' any ether public or coulracior facilities associated with the Proiluclion. 7. Clearing - PYRO shall be responsible Ibr tile mnof all ibyPYRO. CLIENTshallberespousintelbrtnyodraclanupwhich equpment provided by PYRO and clean try Cf any live Pymlc:nnic debris nurde nec-.miy may he required of the Production orsa-up, discharge and I'alloui areas including nary ewirmmtannl clean-up. PS V 1-2c Pyro Spectaculars, Inc. P.O. Box 2329 Rialto, CA 92377 Tel: 909-355-8120 :::: Fax: 909-355-9813 Newport Dunes Program A July 4, 2019 Page 2 of 4 9. Peru s - PYRO agars to apply for permits for the firing of pymscchnim only from lite Newport Beach Fre Depanmenl, FAA, and USCG, if required. CLIENT shall be rcspmmble for any Tea associated with these permits including standby fees. CLIENT slail be responsible for obtaining any other necessary permits, paying associated fees- and making other appropriate arrangements for Police Departments, other Fitz Detunmen s. mad closures, evcnVactivny Orland use permits or any permission or punnil required by any Local, Regional, State or Faleml Government, 9. Inmrance - PYRO shall at all times during the pMonnance of se"icm herein ensure tile( die following inturance is maintained in connection with PYRO's performance of this Agreement (1) cumniacial general liability insurance, including products, completed operations, and contractual liability umkr this Agreement, (2) uutmtwbile liability insurance, (3) walkers' companwtion insurance and employer liability insurance. Such insurstu:u is to protect CLIENT from claims for bodily injury, including death, personal injury, and form claims of property dmnage- which may arise firm PYRO's pelionnance of this Agreement. only. 'file types and amounts of coverage shall be as set fort( in the Scope of Work. Such insurance shall not include claims which arise fiotn CLIENT's negligence or willful conduct w from failure of CLIENT to perform its obligations under this Agreement, coverage for which scall he provided by CLIENT. The coverage of these politics shall be subject to reasonable inspection by CLIENT. Cenificaim of Insurance evidencing the required general liability coverage shall be furnished to CLIENT prior to the rrmdering ofstervicee heheunder and shall include tiro( the following am tamed us additionally insured: CIJEPfr; Sponsors, Landowners, Barge Owners, if any; and Pertaining Authorities, with respect to the accretions of PYRO at die Production. Pyrotechnic subcontractors or providers, if any, not covered under puhicis of insurance required hereby, shall secure, maintain and provide their own insurance coverage with respect to their respective operations and services. 10. Indemnification - PYRO represents and warrants dial it is capable of furnishing the necessary experience, personnel, equipment, milledills, providers, and expertise to produce the Production in a sofa and professional manner. Notwithstanding anything in this Agreement to tilt contrary, PYRO shall indemnity, hold harmleas, and defend CLIENT and the additional insureds from and against any and all claims, actions, damages, liabilities and expenses, including but not limited to, arrorney and other professional fees and court costs, in connection with the loss ofHic, personal injury, and/or damage to property, arising fain or out of the Production and are proactuation thereof to the extent such aro occasioned by any act or omission or PYRO, their officers, agents, com ichors, providers, or employees. CLIENT shall indemnify, hold harmless, and defend PYRO form and against any and all claims, actions, damages, liability and expenses, including but art limited to, anomey and adserprofessional fes and court costs in cunnectinn with the loss of lite, personal injury, and/or damage to properly, arising from or Out of the Production and the presentation thereof to the extent such are occasioned by any act or omission of CLIENT, is affects, agents, contractors, providers, or employees. In no event shall either party be liable for dee consequential dmtagm of the other party. 1 L Limitation of Darraaem for OrrBnar Breach - Except in the case of bodily injury and property damage as provided in the insurance and indcmnifirohon Provmnne of Paragraphs 9 and 10, above, in the event CLIENT claims that PYRO has breached this Agreement or was otherwise negligent in perfuming die Production provided for herein, CLIENT sMII not be emifled to claim or mcova• monetary damages from PYRO beyond the moonlit CLIENT has paid to PYRO undo this Agmenent, and shall not be entitled to csiin or recover any consequential dnl mils form PYRO including, wilbour limitation, damages for loss of intone. bumps or profits. 12. Force flWiture -CLIENT agrees to assume the risks of weather, strike, civil unral, farm lin, military action, guwmmrmal action, and any other causes beyond the control of PYRO which may prevent the Production from being safely discharged nn the scheduled dale, which may cause the concellatiun of any evrnt for which CLIENT las purchased the Production, or which may affect at damage such portion of the exhibits as must be pieced and exposed a necessary time bufore the Production. if, for any such reason, PYRO is not masotably able to safely discharge the Production an the scheduled date, or at rhe scheduled time, or should any event for which CLIENT las pumbasei dre Production be maccled m a suit nfmch causes, CLIENT may (i) reschedule the Production and pay PYRO such sums as provided in Paragraph 13, or(it) correct the Production and Pay PY RO such suns as provided in Pa mgadh 14, based upon when the Production is canceled. 13. ResehedWino Of Event -If CLIENT elects to reschedule the Production, PYRO shell be paid the original Fee plus all additional expcosm made necessary by rescheduling plus a 15%3ervice fee on such additional expenses. Said expenses will be invoiced sepumtely and payment will be due in full within 5 days of receipt. CLIENT and PYRO shall agree upon the rescheduled date taking into consideration availability of pemiu, materials, equrpalcm, transportation and labor. The Production shall be rescheduled for a date not mare than 90 Days subsequent to the Arae firsts" for the Production. The Production shall not be rescheduled to a date, or furan event, tat historically has involved a fireworks production. The Production shall not be rescheduled between June 15th and July 15th unless the original date was July 41h of that tame year, or bclw= Dezember 15th and January 15111 unless the original date was December 31st of the earlier year unless PYRO agrees that such rescheduling will not admwly affect normal business opemtio s during those periods. 14. Rielt To Cancel - CLIENT shall lava tire option to unilaterally cancel the Preductinn prim to the scheduled date. If CLIENT exercises this option. CLIENT agrees to Pay to PYRO, as liquidated damages, the following percentage, of the Fre is set forth in Pamgnaph J.I. O 500. ifcanccllatiun occurs30 m 90 days p+iorte, lite scheduled date. 2) 75% if cancellation occurs 15 to 29 days prior to the scheduled date, 31100% thcriricr. In Lite event CLIENT cancels the Production, it will he impmettcal orextmmely difficult to fix actual amount of PYRO's damages. The foregoing represents a reasonable estimate of the damages PYRO will suffer if CLIENT cancels doe Production, 15. No Joint Venture - h is agreed, nothing in [itis Agmernent or in PYRO's pcil'onnancc at the I'mdt¢lion shall be construed as forming a partnership or joint venture between CLIENT and PYRO. PYRO shall be and is an indep edea contractor with CLIENT and not an employee of CLIENT'. The Penia hereto shall be severally responsible for t eirmvn aepmste dells nal obligations and neither Party shall be held nsponsiblc fm any agreements at obligations not expressly provided for herein 16. Aaolicuble Law - Thie Agreehnent and the rights and obligations of the Parties hereunder shall be construed m accordance with the laws of Calitmou. It is further agreed IMM the Central Judicial Disu ice of San Bermudian County, Califnmia, shall he prong vnure for any such action. In the event that dm scope of the Production is reduced by authorities having jurisdiction or by either Party for safely concerns. lite full dollarnmouuts outlined in this .Agreement are enfoucuablc. 17. Notices - Any Notice to the Pallia p rillilled or squired under this Agreement envy he given by ,railing such `otice in the United Stales Mail, Postage prepaid. first class• addressed as follows: PYRO - Pym Spectaculars, Inc., P.O. Box 2329, Ri;dlo. California. 92377. m' foruvemighr delivery to 3196 N. Lochs; Avenue, Rialto, Califamin 92377. CLIENT-Newnorl Duces. 1131 Back Bay D 'i,e N rl thrich,CA 926611 PS V 1-2e Pyro Spectaculars, Inc. P.O. Box 2329 Rialto, CA 92377 Tel: 909-355-8120 :::: Fax: 909-355-9813 Newport Dunes Program A July 4, 2019 Page 3 of 4 1 g. btnrlffieallan of Termter s All ms of the Agreement arc in writing and may only be modified by written agrmmnni of both Panics hereto. Doll, Parties acknowiedga they Tuve received a copy of said written Agrecinrnt and agree to be bound by said terms of written Agreenent only. 19. Smarabilli — If there is snare than cure CLIENT, they shall bejuintly and severally raponsible to ped'onn CLIENT's obligations under this Agreement. This Agreement shall become effective after it is executed and accepts! by CLIENT and after it is executed and accepted by PYRO at PYRO's offices in Rialto, California. This Agreement may be executed in scve it cour mparts, including faced and entailed topics, each one of wine[' shall be decined an original against the Patty exmuling sine. This.Agrcement shall he binding upon the Panics hereto and upon their heirs, succ sots, executors, administrators and assigns. 20. Price Firnn — If any changes or alterations are made by CLIENT to this Agreement or if this Agreement is not executed by CLIENT and delivered to PYRO on or before the PRICE FIRM date shown below, than the Price, date, and mope of the Production are subject to review and acceptance by PYRO fora period of 15 days following delivery to PYRO of the executes Agreement. In the event it is not neccptod by PYRO, PYRO 511.111 give CLIENT written notice and this Agmnnent shall be void. PRICE FIRM through April 2, 2019 EXECUTED AGREEMENT MUST BE DELIVERED TO PYRO BY TI IIS DATE. See PRICE FIRM conditiums, paragraph 20, above. EXECUTED as of the date first written above: PYRO SPECTACULARS, INC. I Its: Resident SHOW PRODUCER: Jeff Martin PS V I -2c Newport Dunn , r By: Its: - I Jf 9 r Gl Ji�i2 n Y_ �Print Name Pyro Spectaculars, Inc. Newport Dunes P.O. Box 2329 Program es Rialto, CA 92377 July 4, 2019 Tcl: 909-355-8120:::: Fax: 909-355-9813 Page 4 of 4 SCOPE OF WORK PYRO SPECTACULARS, INC. ("PYRO") and Newport Dunes("CLIENT") Pyro shall provide the following goods and services to CLIENT: • One Pyro Spectaculars, Inc., Production on July 4. 2019, at approximately 9:00 p.m., at Newport Dunes, lVaterfrout ResorL 1131 Back Bay Drive Newport Beach CA. • All pyrotechnic equipment, trained pyroteclmicians, shipping, and pyrotechnic product. • Application for specific pyrotechnic permits relating to the Production. • Musical soundtrack for the Production supplied in agreed upon format. • Insurance covering the Production as set forth in the Agreement with the following limits: Insurance Renniremenrc Limits Commercial General Liabilitv $5,000,000.00 Combined Single Limit- Each Occurrence Business Auto Liability- $5,000,000.00 (Bodily Injury & Property Damage) Combined Single Limit- Each Occurrence Owned Nott -Owned and Hired Autos (Bodily Injury & Property Damage) Workers' Comuensation Statutory Employer Liabilit $1,000,000 Per Occurrence CLIENT shall provide to PYRO the following goods and services: • All on-site labor costs, if any, not provided or performed by PYRO personnel including, but not limited to, local union requirements, all Site security, Police and Fire Dept. standby personnel, stagehands, electricians, audio and fire control monitors, carpenters, plumbers, clean-up crew. All these additional personnel and services shall be fully insured and the sole responsibility of CLIENT. • Coordination and any applicable non -pyrotechnic permitting with the local, state or federal government that may hold authority within the Production. • Costs of all permits required for the presentation of the Production and the event as a whole. • Provision of a Safety Zone in accordance with applicable standards and all requirements of the authorities having jurisdiction throughout the entire time that the pyrotechnics are at the Site or the load site (if different) on the date of the Production and all set-up and load -out dates, including water security to keep unauthorized people, boats, etc. from entering the Safety Zone. • A professional grade Audio System including all necessary equipment, installation of such equipment and trained audio engineers for operation based on audio and communications requirements provided by PYRO. • General Services including, but not limited to, Site and audience security, fencing, adequate work light, dumpsier accessibility, a secure office for PYRO personnel within the venue, secure parking for PYRO vehicles, access to washrooms, tents, equipment storage, hazmat storage, electrical power, fire suppression equipment, access to worksites, necessary credentialing, etc., will be required as necessary. PS v 1.2e