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Agenda Item 7 - CONSIDERATION OF RATIFICATION OF CONTRACT WITH PAUL MAURER FOR AMUSEMENT RIDES, ATTRACTIONS, GAMES, AND CONCESSIONS FOR THE CITY'S SPRING FESTIVALAGENDA ITEM NO.7 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: March 1, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF RATIFICATION OF CONTRACT WITH PAUL MAURER FOR AMUSEMENT RIDES, ATTRACTIONS, GAMES, AND CONCESSIONS FOR THE CITY'S SPRING FESTIVAL RECOMMENDATION: It is recommended that the City Council: 1. Ratify the agreement between the City and Paul Maurer dba Paul Maurer Shows for the provision of amusement rides, attractions, games and concessions for the City's Spring Festival. 2. Authorize the City Manager to execute future amendments to extend the term of the agreement. BACKGROUND: The City is hosting its first annual Spring Festival at the West Covina Sportsplex on March 12, 2022, from 12:00 P.M. - 10:00 P.M., and March 13, 2022, from 12:00 P.M. - 7:00 P.M. The Spring Festival will include food, drinks, a beer garden, and live performances. To add to the community celebration, staff also intends to include carnival -style rides, attractions, games and concessions. DISCUSSION: Staff solicited proposals from five companies that provide carnival rides, attractions, games and concessions in the Southern California area. Staff received two responses. Of the two companies that responded, only Paul Maurer dba Paul Maurer Shows had availability to provide rides, attractions and services during the Spring Festival. Paul Maurer has been in the carnival and amusement business for over 45 years. Paul Maurer Shows has over 35 amusement rides, games and food concessions. Paul Maurer Shows currently produces and supports more than 90 events throughout the Western United States, with its main focus in California, Oregon and Nevada. Key terms of the agreement include: . Paul Maurer Shows will provide at least fourteen (14) amusement rides and attractions, seven (7) to eight (8) family games, and one (1) food concession, such as cotton candy or candy apples. . The City will not be responsible for any compensation to Paul Maurer Shows. Paul Maurer Shows will generate revenue from the sales of ride tickets and wristbands, games, and concessions. . Paul Maurer Shows will share its revenues with the City from ride ticket sales as follows: 9 If gross revenues are under $50,000, the City will not receive any share. . If gross revenues are between $50,001 and $75,000, the City will receive 15% of the gross revenue. . If gross revenues are $75,001 or more, the City will receive 20% of the gross revenue. . The agreement will have a one-year term, with the option to extend for two additional one-year periods. . Paul Maurer Shows will have a "right of first refusal" for future Fall or Spring Festivals at which the City will include amusement rides, attractions and games. Due to the need to execute the agreement in order to promote the carnival rides, attractions and games and move forward with making arrangements for such rides and attractions, and because the City is not providing any compensation to Paul Maurer Shows, the City Manager executed the agreement on behalf of the City. Staff is requesting that the City Council ratify the agreement and authorize the City Manager to execute future amendments to extend the agreement. LEGAL REVIEW: The City Attorney's Office has reviewed the agreement and approved it as to form. C611�K@g31 The City Council has the following options: 1. Approve Staffs recommendation; or 2. Provide alternative direction. Prepared by: Lisa Sherrick; Assistant City Clerk Attachments Attachment No. 1 - Carnival Agreement CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness Expand Economic Development Opportunities A Creative and Active Communuty ATTACHMENT NO. 1 CARNIVAL AGREEMENT THIS CARNIVAL AGREEMENT is made and entered into this 22nd day of February, 2022 ("Effective Date"), by and between PAUL MAURER, an individual DBA PAUL MAURER SHOWS ("Carnival Operator'), and the City of West Covina, a California municipal corporation ("City"). WHEREAS, Carnival Operator is engaged in the business of providing amusement rides, attractions, games and food concessions; and WHEREAS, City desires to utilize Carnival Operator's amusement rides, attractions games and food concessions for City's Spring Festival, to be held on March 12 and March 13, 2022 (the "Festival"); and WHEREAS, the parties desire to set forth their rights, duties and liabilities in connection with the services to be provided. NOW, THEREFORE, in consideration of the covenants contained herein and other good and valuable consideration, the parties hereto agree to the following: Amusement Rides and Concessions. Carnival Operator will provide at least fourteen (14) amusement rides and attractions, including a combination of spectacular/adult rides, major/adult rides, and kiddie rides. The amusement rides that will be provided are detailed in Exhibit A, attached hereto and incorporated herein. Carnival Operator may not furnish any other rides without City's prior consent. Carnival Operator will also provide a minimum of one (1) food concession, such as floss or a candy apple wagon, and a minimum of seven (7) to eight (8) family game concessions. Examples of the family games to be provided are detailed in Exhibit B, attached hereto and incorporated herein. City agrees that it will not receive any share of Carnival Operator's revenues from sales for such games and concessions. 2. Space for Rides and Games. The City will provide space for the placement of the amusement rides, attractions, games and concessions at one of the baseball fields located at the main entrance of the City of West Covina Sportsplex, located at 2100 S. Azusa Ave. The space designated for Carnival Operator's use will be referred to in this Agreement as the "Premises." 3. Term of Agreement; Termination. a. Term. The term of this Agreement shall commence on the Effective Date and end on February 21, 2023. Thereafter, City and Carnival Operator may extend the term of this Agreement for up to two (2) additional one (1) year periods upon written agreement. Carnival Operator's access to the Sportsplex during each agreed -upon event shall be in accordance with the schedule of events agreed to by the parties. b. Termination. City may terminate this Agreement at any time, with or without cause, by providing written notice to Carnival Operator. Carnival Operator may terminate this Agreement within ninety (90) days following the completion of any agreed - upon event by providing written notice to City. 1 of 8 4. Schedule of Events. Carnival Operator will provide its amusement rides, attractions, games and food concessions for the duration of the Festival, in accordance with the schedule of events detailed below. The schedule of events may be revised upon mutual agreement of Carnival Operator and City. Schedule of Events: Monday, March 7, 2022 Equipment begins to arrive at S orts lex Wednesday, March 9, 2022 Carnival Operator begins set-up of rides and attractions Thursday, March 10, 2022 Carnival Operator continues set-up of rides and attractions Friday, March 11, 2022 Carnival Operator cleans and inspects all rides Saturday, March 12, 2022 Carnival open: 12:00 m-10:00 m Sunday, March 13, 2022 Carnival open: 12:OOpm-7:OOpm Carnival Operator begins tear down of equipment after Festival. Monday, March 14, 2022 and Carnival Operator finishes tear down and moves Tuesday, March 15, 2022 equipment out by no later than 6:OOpm on Tuesday, March 15, 2022. For the purpose of pre -event move -in and post -event move -out, Carnival Operator may have access to the Sportsplex from 6:30am to 5:OOpm on the dates set forth above, unless otherwise noted above. Upon request, City may grant Carnival Operator additional time to complete tear -down and move -out of the equipment. 5. Ticket Sales and Prices. a. The parties agree that tickets for amusement rides shall be sold as unlimited ride wristbands or coupons at the following prices: i. Unlimited Ride Wristbands 1. Advance Purchase: "Daily' Unlimited Ride Wristband=$25.00 each 2. Onsite at Festival: "Daily" Unlimited Ride Wristband=$35.00 each ii. Coupons 1. Onsite at Festival: Sheet of 24 coupons=$20.00 each 2. Onsite at Festival: Single (1) coupon=$1.00 each b. The parties acknowledge that each ride requires three (3) to six (6) ride coupons, per person. c. Carnival Operator will provide all advance purchase unlimited ride wristband coupons to the City within five (5) days from execution of this Agreement. Carnival Operator will permit such coupons to be redeemed for wristbands at any carnival ticket box at the Festival. d. City agrees to cease selling advance unlimited ride wristband coupons at 7:OOpm on Friday, March 11, 2022. e. City agrees to return all unsold advance unlimited wristband coupons to Carnival Operator by 10:00am on Saturday, March 12, 2022, or such other time as agreed to by City and Carnival Operator. City further agrees to issue a check, made payable to 'Paul Maurer," to Carnival Operator for all monies collected from the advance unlimited wristband coupon sales by 10:OOam on Saturday, March 12, 2022. 2of8 f. Carnival Operator will provide ticket sellers for the duration of the Festival, unless otherwise agreed to by City and Carnival Operator. 6. Ticket Sale Revenue. Carnival Operator agrees to share gross revenues from ticket sales for amusement rides, including all advance and onsite sales of wristbands, coupons, and coupon books, with the City as follows: a. If gross revenues from ticket sales for amusement rides totals $50,000 or less, City will not receive any share of the gross revenue from such sales. b. If gross revenues from ticket sales for amusement rides totals between $50,001 and $75,000, Carnival Operator will provide City with 15% of the gross revenue from such sales. c. If gross revenues from ticket sales for amusement rides totals $75,001 or more, Carnival Operator will provide City with 20% of the gross revenue from such sales. Carnival Operator will provide a final and complete settlement from the total ride gross revenues to City on Sunday, March 13, 2022, within forty-five (45) minutes after the closing of all rides. The parties shall prearrange the location and time for such settlement. During such meeting, Carnival Operator shall provide City its share, if any, of the ride gross revenues by issuing the City a check made payable to "The City of West Covina." The parties acknowledge that Carnival Operator has an "open door" policy with Festival sponsors, and agrees to permit authorized City personnel to come into the carnival office any time to check or verify the ticket sales amount or status during operating hours. 7. Electrical Power. Carnival Operator shall provide its own generated electrical power for the operation of the amusement rides, attractions, games and food concessions. 8. Operation of Amusement Rides and Concessions. Carnival Operator shall have exclusive control of the operation of all amusement rides, attractions, games and food concessions provided by Carnival Operator pursuant to this Agreement. Carnival Operator shall operate such rides, attractions, games and concessions on each day of the Festival in accordance with the schedule of events detailed herein, or as otherwise agreed to by the parties. 9. Installation and Removal of Amusement Rides and Concessions. Carnival Operator shall furnish at its own expense all personnel and equipment required to erect, operate, dismantle and remove all amusement rides, attractions, games, concessions and other equipment provided by Carnival Operator on the Premises. 10. Carnival Operator Representative. At all times Carnival Operator or any of Carnival Operator's personnel are present on the Premises, there shall also be present a "Representative" of Carnival Operator who shall be responsible for Carnival Operator's operations and the conduct of its personnel under this Agreement. 11. Condition of Premises. Carnival Operator agrees to clean up any leftover debris caused by the operation of the amusement rides, attractions, games and food concessions provided by Carnival Operator at the end of each day of the Festival. Carnival Operator further agrees to surrender the Premises to the City at the end of the Festival in the same condition as existed on the Effective Date of this Agreement, 3of8 ordinary use and wear thereof excepted. Carnival Operator shall be responsible for any damage caused to the Premises by Carnival Operator's amusement rides, attractions, games and/or food concessions. 12. Advertising. City shall be solely responsible for advertising the Festival and the amusement rides, attractions, games, and food concessions to be provided by Carnival Operator. Time permitting, Carnival Operator will provide to City 1,000 half - page, double -sided fliers, with one side in English and the other side in Spanish, in a form approved by City. If City requests additional fliers, City agrees to reimburse Carnival Operator for the costs of printing such additional fliers. 13. Permits. City agrees to obtain and pay for all licenses and permits required for the operation of the Festival and Carnival Operator's rides and attractions. Carnival Operator shall obtain and pay for its City of West Covina business license. 14. Offices and Living Quarters. City agrees to designate a location onsite at the Sportsplex or its parking lot for Carnival Operator's management offices, living quarters, which are fully self-contained, and crew bunkhouses. Such facilities shall be moved in and torn down in accordance with the schedule of events outlined herein. 15. Drinking Water. City agrees to provide Carnival Operator with access to one (1) fresh drinking water outlet for Carnival Operator's use for the duration of the Festival. 16. Other Amusement Operators. City agrees that it will not sponsor or book any other vendor providing amusement rides, attractions or games for the Festival. 17. Right of First Refusal. While this Agreement is in effect, and provided that Carnival Operator has not breached this Agreement and has provided its services to City's full satisfaction, City agrees to provide Carnival Operator the right of first refusal should City conduct a future Fall Festival or Spring Festival during which City intends to include amusement rides, attractions, and games. 18. Cancelation. City reserves the right to cancel the use of Carnival Operator's rides, attractions, games and concessions in the event of cancelation of the Festival, an act of God, inclement weather, natural disaster, bomb or threat, or for any other reason determined to be in the public interest as determined in the City's sole discretion. Carnival Operator hereby waives any claims it may have against the City relating to any such cancelation. 19. Force Maieure. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party. Carnival Operator shall not be liable for any delay or failure to perform if Carnival Operator presents documentation satisfactory to the City to substantiate such delay or failure to perform. 20. Insurance. a. Minimum Scope and Limits of Insurance. Carnival Operator shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following sm minimum scope of insurance coverages with an insurance company authorized to do business in California, with a current A.M. Best's rating of no less than A:VII, and approved by City: Broad -form commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, with a policy limit of not less than Ten Million Dollars ($10,000,000.00), combined single limits, per occurrence, including premises -operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury and bodily injury. Any endorsement restricting standard ISO "insured contract" language will not be accepted. ii. Automobile liability insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Carnival Operator arising out of or in connection with work to be performed and services to be provided under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limit for each accident. iii. Workers' compensation insurance as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Carnival Operator agrees to waive, and to obtain endorsements from its workers' compensation insurer waiving subrogation rights under its workers' compensation insurance policy against the City, its officers, agents, employees, and volunteers for losses arising from work performed by Carnival Operator for the City and to require each of its subcontractors, if any, to do likewise under their workers' compensation insurance policies. iv. Sexual abuse/molestation insurance in an amount not less than One Million Dollars ($1,000,000.00) per occurrence, Two Million Dollars ($2,000,000.00) general aggregate. This coverage may be part of commercial general liability coverage or a separate policy. b. Endorsements. The insurance policies are to contain, or be endorsed to contain, the following provisions: Additional Insureds: The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of Carnival Operator pursuant to its contract with the City; products and completed operations of Carnival Operator; premises owned, occupied or used by Carnival Operator; automobiles owned, leased, hired, or borrowed by Carnival Operator. ii. Notice of Cancelation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. iii. Coverage Not Affected: Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of West Covina, its officers, officials, agents, employees, and volunteers. 5of8 iv. Coverage Applies Separately: Carnival Operator's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. c. Primary Coverage/Noncontributing. Carnival Operator's insurance coverage shall be primary insurance as respects the City of West Covina, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of West Covina shall be excess and 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. d. Waiver of Subrogation. All insurance maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against the City, its elected and appointed officials, officers, employees, agents and volunteers or shall specifically allow Carnival Operator or others providing insurance evidence in compliance with these specifications to waive their right to recovery prior to a loss. Carnival Operator hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. e. 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 Carnival Operator maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by Carnival Operator. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. Deductible or Self -Insured Retention. If any of such policies provide for a deductible or self -insured retention to provide such coverage, the amount of such deductible or self -insured retention shall be approved in advance by City. The City may require Carnival Operator to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. g. Certificates of Insurance. Carnival Operator, at its sole cost, shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, including the waiver of subrogation endorsement for workers' compensation, in a form and content approved by City, prior to performing any services under this Agreement. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. h. Non -limiting. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement. 21. Indemnification and Hold Harmless. It is expressly understood and agreed by and between the parties that in no case shall City be liable to Carnival Operator, or any other person or persons, for any injury, loss and/or damage to any person or property on the Premises or arising from the amusement rides, attractions, games and/or concessions provided by Carnival Operator or by virtue of any act, error, or omission of Carnival Operator or its employees, agents and/or subcontractors. Carnival Operator agrees to defend, with counsel of City's choosing, indemnify and hold harmless the City, its elected and appointed officials, officers, agents and employees, at Carnival Operator's sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees, arising from or relating to the use or operation of the amusement rides, attractions, games and/or concessions provided by Carnival Operator or arising from any act, error or omission of Carnival Operator, its employees, agents and/or subcontractors in the performance of this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Carnival Operator, its employees, agents and/or subcontractors. Notwithstanding the foregoing, Carnival Operator shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. 22. Compliance with All Laws. Carnival Operator shall comply and shall require its employees, agents and subcontractors to comply with all laws, ordinances and regulations adopted or established by federal, state or local governmental agencies or bodies, with the terms of this Agreement, all relevant health and fire codes and all trademark, copyright and other intellectual property laws. Carnival Operator agrees that at all times it and its employees and agents will conduct its activities with full regard for public safety. 23. Rules and Regulations. Carnival Operator agrees to comply with all rules and regulations from time to time adopted or prescribed by City, for the operation and management of the Premises and Festival. Carnival Operator further agrees to cooperate with the City in its performance of this Agreement and comply with all reasonable requests of the City in connection with Carnival Operator's performance of this Agreement. 24. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, Email or by U.S. mail. If by U.S. mail, it shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by Email; and c) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. 7of8 IF TO CARNIVAL OPERATOR: Paul Maurer Shows 302 Washington St. Ste. 1219 San Diego, CA 92103 Tel: (619) 823-5204 Email: don.paulmaurershows@yahoo.com Attn: Paul or Don Maurer IF TO CITY: City of West Covina 1444 West Garvey Ave. South West Covina, CA 91790 Tel: (626) 939-8475 Email: rlerma@westcovina.org Attn: Roxanne Lerma 25. Entire Agreement: Amendment. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. 26. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. [SIGNATURE PAGE FOLLOWS.] mm IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CITY OF WEST COVINA, A municipal corporation Date: David Carmany City Manager CARNIVAL OPERATOR Date: Paul Maurer ATTEST: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Date: Thomas P. Duarte City Attorney APPROVED AS TO INSURANCE: Date: Helen Tran Human Resources and Risk Management Director EXHIBIT A AMUSEMENT RIDES Adult & Teen Rides Rock Star Super Shot Zipper Kite Flyer Force 10 (Gravitron) Deluxe Sizzler Eli-16 (70' high) Traditional Ferris Wheel Swinger Kiddie Rides Carousel (Merry -go -Round) Fun Slide Dino's Super Trucks Dizzy Dragon Go Gator Kiddie Coaster EXHIBIT B GAMES Family Games Water -race Balloon Pop Gold Fish Ring -a -Duck Hi -Striker Tubs of Fun Long Range Basketball Ring -a -Bottle