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2015-29226 Reso RESOLUTION NO. 2015-29226 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SUBSTANTIVE TERMS, AS SET FORTH IN THE DRAFT AGREEMENT ATTACHED AS EXHIBIT "A" TO THIS RESOLUTION, BETWEEN THE CITY AND A NATIONAL SALUTE TO AMERICA'S HEROES, LLC (APPLICANT), FOR THE PRODUCTION OF AN AIRCRAFT FLIGHT DEMONSTRATION AND AQUATIC SHOW WITH ANCILLARY ACTIVITIES SUCH AS ENTERTAINMENT, EXHIBITS, CONCESSION SALES, COMMENCING ON JANUARY 1, 2016, AND ENDING ON DECEMBER 31, 2021; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND FINALIZE THE AGREEMENT BASED ON THE APPROVED TERMS SET FORTH HEREIN, AND, FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS, PROVIDED THAT IN THE EVENT THAT THE CITY AND APPLICANT DEEM IT NECESSARY TO INCLUDE ANY NEW -SUBSTANTIVE TERMS (WHICH ARE NOT CONTAINED IN THE ATTACHED DRAFT AGREEMENT) THEN SUCH NEW SUBSTANTIVE TERMS SHALL BE SUBJECT TO PRIOR APPROVAL BY THE MAYOR AND CITY COMMISSION BEFORE FINAL EXECUTION THEREOF. WHEREAS, Applicant has requested approval from the City to conduct its aircraft flight demonstration and aquatic show with ancillary activities such as entertainment, exhibits, souvenir sales and refreshment sales (hereinafter referred to collectively as the "Air and Sea Show" or"Event"); and WHEREAS, City has been advised that, due to the scope and magnitude of the proposed Air and Sea Show, Applicant desires a contract with City for an initial term of five (5) years so that Applicant can appropriately plan the commitment of resources, sponsors, subcontractors and finances; and WHEREAS, City recognizes that the Event is a unique branded event requiring significant capital and time investment and, as such, is willing to enter into a draft agreement with Applicant, subject to the terms and conditions contained in the attached Exhibit"A," and subject further to the conditions contained in this Resolution with respect to negotiation of the final Agreement. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH FLORIDA that the Mayor and City Commission hereby approve the substantive terms, as set forth in the draft agreement attached as Exhibit "A" to this Resolution, between the City and A National Salute To America's Heroes, LLC (Applicant), for the production of an aircraft flight demonstration and aquatic show with ancillary activities such as entertainment, exhibits, concession sales, commencing on January 1, 2016, and ending on December 31, 2021; authorizing the City Manager to negotiate and finalize the agreement based on the approved terms set forth herein, and, further authorizing the Mayor and City Clerk to execute the final agreement upon conclusion of successful negotiations, provided that in the event that the City and applicant deem it necessary to include any new substantive terms (which are not contained in the attached draft agreement) then such new substantive terms shall be subject to prior approval by the Mayor and City Commission before final execution thereof. PASSED and ADOPTED this Pi-1.day of Decer'ibei 2015. ate. AI" / , Philip Le ine, Y�, „ ATTESTED B : ,,.,, /. / / 1 Rafael E. Granado, Cit Cl-,;:i``B E.``n*11S �� T:\AGENDA120151October\TCED\A�n8� ..Briow.�:rrfriik ,T'�.docx I;'' '-i. V:01°°- ...' 1 i �i ��P-CO: • �ORP i APPROVED AS TO ••\N = FORM&LANGUAGE %.• •'��� &FOR EXECUTION 4440L9sCH�h+,...e. •z :J. (--, `o(4 05 City Adtomey pe Date COMMISSION ITEM SUMMARY Condensed Title: A Resolution Approving The Substantive Terms, As Set Forth In The Draft Agreement Attached As Exhibit "A" To This Resolution, Between The City And A National Salute To America's Heroes, LLC (Applicant), For The Production Of An Aircraft Flight Demonstration And Aquatic Show With Ancillary Activities Such As Entertainment, Exhibits, Concession Sales, Commencing On January 1, 2016, And Ending On December 31, 2021; Authorizing The City Manager To Negotiate And Finalize The Agreement Based On The Approved Terms Set Forth Herein, And, Further Authorizing The Mayor And City Clerk To Execute The Final Agreement Upon Conclusion Of Successful Negotiations, Provided That In The Event That The City And Applicant Deem It Necessary To Include Any New Substantive Terms (Which Are Not Contained In The Attached Draft Agreement) Then Such New Substantive Terms Shall Be Subject To Prior Approval By The Mayor And City Commission Before Final Execution Key Intended Outcome Supported: I Maximize The Miami Beach Brand as a World Class Destination Supporting Data(Surveys, Environmental Scan,etc.): The 2014 Community Satisfaction Survey shows that 64% of residents (compared to 71% in 2012), believe the City has about the right number of major events. Item Summary/Recommendation: From 1995 to 2007, the City of Fort Lauderdale hosted the Air and Sea Show on a four mile stretch of beach from Oakland Park to Las Olas Boulevard, which attracted hundreds of thousands of resident locals, domestic and international visitors. From its inception, the Fort Lauderdale Air and Sea Show was produced by Mickey Markoff, president of MDM Group, Ltd. At the September 2"d, 2015 Commission meeting, Commissioner Grieco proposed introducing the Air and Sea Show to Miami Beach during Memorial Day Weekend. The Commission agreed to begin negotiations with Mickey Markoff, and draft an agreement for the production of the show. The Administration and Mr. Markoff have negotiated and drafted the attached agreement for your consideration. Historically, the City has enacted enhanced staffing during Memorial Day Weekend. With the enhanced staffing already in place, the City will provide all necessary personnel to provide public safety at the Event Site and Event Impact Areas. These services shall include without limitation crowd control, traffic management, fire rescue, ocean rescue, emergency medical services, and police services. In the event that the Applicant requires any additional services or expansion of services, the Applicant shall be responsible for the payment of all costs and expenses to the City. The Agreement is being presented for your consideration. Advisory Board Recommendation: N/A Financial Information: Source of Amount Account Approved Funds: 1 OBPI Total Financial Impact Summary: The City will provide all necessary personnel to provide public safety at the Event Site and Event Impact Areas. These services shall include without limitation crowd control, traffic management, fire rescue, ocean rescue, emergency medical services, and police services. City shall be responsible for initial expenses up to the amounts associated with Memorial Day Weekend for the immediately preceding calendar year, adjusted annually for either (1) wage increases for personnel • for the foregoing City departments or (2) inflation utilizing the United States Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers; U.S. City average (1982-84=100), whichever is lower, for the Event (the "City's Initial Contribution"). Applicant shall be responsible for all City's costs and expenses above the City's Initial Contribution up to the maximum not-to-exceed amount of $200,000, with City and Applicant to be mutually responsible for all costs in excess thereof. City Clerk's Office Legislative Tracking: Max Sklar, ext. 6116 Sign-Offs: , De •/m;1 t !'recce Assistant City Manager i Manager MAS =My KGB JLM T:IAGEND:X01: • ober\TCED\Air and Sea Show Commission Summ.docx Agenda Item R7H MIAMIBEACH -Date IZ-q i S MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members of he City Co ission FROM: Jimmy L. Morales, City Manager ' DATE: October 14, 2015 SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORID APPROVING THE SUBSTANTIVE TERMS, AS SET FORTH IN THE DRAFT AGREEMENT ATTACHED AS EXHIBIT "A" TO THIS RESOLUTION, BETWEEN THE CITY AND A NATIONAL SALUTE TO AMERICA'S HEROES, LLC (APPLICANT), FOR THE PRODUCTION OF AN AIRCRAFT FLIGHT DEMONSTRATION AND AQUATIC SHOW WITH ANCILLARY ACTIVITIES SUCH AS ENTERTAINMENT, EXHIBITS, CONCESSION SALES, COMMENCING ON JANUARY 1, 2016, AND ENDING ON DECEMBER 31, 2021; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND FINALIZE THE AGREEMENT BASED ON THE APPROVED TERMS SET FORTH HEREIN, AND, FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS, PROVIDED THAT IN THE EVENT THAT THE CITY AND APPLICANT DEEM IT NECESSARY TO INCLUDE ANY NEW SUBSTANTIVE TERMS (WHICH ARE NOT CONTAINED IN THE ATTACHED DRAFT AGREEMENT) THEN SUCH NEW SUBSTANTIVE TERMS SHALL BE SUBJECT TO PRIOR APPROVAL BY THE MAYOR AND CITY COMMISSION BEFORE FINAL EXECUTION THEREOF BACKGROUND From 1995 to 2007, the City of Fort Lauderdale hosted the Air and Sea Show on a four mile stretch of beach from Oakland Park to Las Olas Boulevard. Throughout the years, the City of Fort Lauderdale has attracted hundreds of thousands of resident locals, domestic and international visitors for the Air and Sea Show. It was an event that at one point had been televised in 144 countries and generated millions of dollars in economic impact for the City of Fort Lauderdale. From its inception, the Fort Lauderdale Air and Sea Show was produced by Mickey Markoff, president of MDM Group, Ltd. Founded in Chicago in 1986, MDM Group, Ltd. became an industry leader in the development of multi-dimensional marketing strategies and the creation of special events. MDM Group, Ltd. has produced a multitude of events that have include the McDonald's National Salute to America's Heroes, Florida Marlins' World Series Championship Victory Boar Parade, Disney World's 20th Birthday Party, IceHouse Beer Truck Drop, and the 200th Anniversary of the US Coast Guard. At the September 2nd, 2015 Commission meeting, Commissioner Grieco proposed introducing the Air and Sea Show to Miami Beach during Memorial Day Weekend. The Commission agreed to begin negotiations with Mickey Markoff, and draft an agreement for the production of the show. ANALYSIS The Administration and Mr. Markoff have negotiated and drafted the attached agreement for your consideration. The substantive terms are as follows: 1. The proposed Air and Sea Show to have an initial term of five (5) years commencing January 1, 2016 and ending December 31, 2021. 2. Within the initial term, the Air and Sea show is subject to cancellation of the Agreement by a motion approved by the City Commission. The Applicant may also elect to terminate the agreement during the term prior to the August 1St of the year preceding the next Air and Sea Show Event. 3. In the event the Air and Sea Show is canceled by the City, the City shall not produce or permit the production of an air and sea show on the City's beach for two (2) calendar years. 4. The City will provide all necessary personnel to provide public safety at the Event Site and Event Impact Areas. These services shall include without limitation crowd control, traffic management, fire rescue, ocean rescue, emergency medical services, and police services. 5. City shall be responsible for initial expenses up to the amounts associated with Memorial Day Weekend for the immediately preceding calendar year, adjusted annually for either (1) wage increases for personnel for the foregoing City departments or (2) inflation utilizing the United States Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers; U.S. City average (1982- 84=100), whichever is lower, for the Event (the "City's Initial Contribution"). Applicant shall be responsible for all City's costs and expenses above the City's Initial Contribution up to the maximum not-to-exceed amount of $200,000, with City and Applicant to be mutually responsible for all costs in excess thereof. 6. In the event that the Applicant requires any additional services or expansion of services, the Applicant shall be responsible for the payment of all costs and expenses to the City. 7. The Applicant shall be the responsible party for obtaining commitment of resources, sponsors, subcontractors and finances. The City shall approval all sponsors of the Event, all goods and services to be promoted, and all items to be distributed, sold, or given away. The Applicant agrees to list the City of Miami Beach as a co-sponsor of the Event on all promotional material and advertising for the Event. 8. The City shall be responsible for all clean-up costs and expenses associated with the removal of trash and debris that accumulates on any portion of Event Site, or in the designated Event Impact Areas. 9. It will be the responsibility of Applicant to arrange, coordinate, and pay for all parking at City facilities and any transit services from these facilities to the Event Site. All proposed shuttle routes and bus stops shall be approved by the City Manager as part of the MOT Plan. 10. Applicant agrees to secure a bond in an amount equal to one hundred and ten percent (110%) of the estimated cost of services for the Applicant requested additional services or expansion of services requested by Applicant, for the Event including, without limitation, public safety, maintenance, cleanup, utility connections, breakdown and removal, storage and repair or replacement of property. Historically, the City has enacted enhanced staffing during Memorial Day Weekend. With the enhanced staffing already in place, the City will provide all necessary personnel to provide public safety at the Event Site and Event Impact Areas. These services shall include without limitation crowd control, traffic management, fire rescue, ocean rescue, emergency medical services, and police services. In the event that the Applicant requires any additional services or expansion of services, the Applicant shall be responsible for the payment of all costs and expenses to the City. CONCULSION As directed by the City Commission on September 2, 2015, the Administration has negotiated the attached Agreement with A National Salute to America's Heroes, LLC for an Air and Sea Show beginning in 2017 during Memorial Day Weekend. The Agreement is being presented for your consideration. JLM/KGB/MASNP T:WGENDA\2015\October\TCED\Air and Sea Show Commission Memo.docx AGREEMENT THIS AGREEMENT is entered into on this day of , 2015, between THE CITY OF MIAMI BEACH, a municipal corporation of the State of Florida, hereinafter referred to as "City", and A National Salute to America's Heroes, LLC, a Florida Limited Liability Company hereinafter referred to as "Applicant". WHEREAS, Applicant has requested approval from the City to conduct its aircraft flight demonstration and aquatic show with ancillary activities such as entertainment, exhibits, souvenir sales and refreshment sales (hereinafter referred to collectively as the "Air and Sea Show" or"Event"). WHEREAS, City has been advised that, due to the scope and magnitude of the proposed Air and Sea Show, Applicant desires a contract with City for an initial term of five (5) years so that Applicant can appropriately plan the commitment of resources, sponsors, subcontractors and finances. WHEREAS, City recognizes that the Event is a unique branded event requiring significant capital and time investment and, as such, is willing to enter in to this agreement with Applicant, subject to the terms and conditions contained herein. NOW THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, and other good and valuable consideration, the receipt and adequacy of which are acknowledged, the parties agree as follows: 1. RECITALS INCORPORATED. The foregoing recitals are incorporated herein by reference. 2. DEFINITIONS. For the purposes of this Agreement, the Definitions set forth below are agreed upon by the parties: a. "Agreement*' means this Agreement between the City and Applicant, including all of the attached and/or referenced Exhibits, as the same may be amended from time to time, in writing signed by both parties and with any such amendment, as to the City, further subject to the approval of the Mayor and City Commission. b. "Applicant" means A National Salute to America's Heroes, LLC, a Florida Limited Liability Company authorized to do business in the State of Florida. c. "City" means the City of Miami Beach, Florida, a municipal corporation of the State of Florida. d. "Contract Administrator" means, as to City, the City Manager or his designee, and, as to Applicant, the Manager of A National Salute to America's Heroes, LLC, or Page 1 his/her designee. In the day to day oversight and administration of this Agreement, and except where otherwise provided herein, contrasted with the parties may rely upon instructions or determinations made by the respective Contract Administrators. The Contract Administrators may not make any change to this Agreement without the approval of a written amendment to this Agreement, executed by City and Applicant and, as to City, further subject to the prior approval of the Mayor and City Commission. e. "City Manager" means the City of Miami Beach's City Manager or his or her designee. f. "City Commission" means the City of Miami Beach City Commission. g. "Event Impact Areas" means the areas outside the Event Site that are directly impacted by the Event. The Event Impact Areas shall be determined by the City Manager, in his sole and responsible discretion; provided, however, that the City Manager may (but shall not be obligated to) consult with Applicant prior to making his determination. In the event of a disagreement between Applicant and the City regarding the Event Impact Areas, the City Manager's decision :shall be final and binding upon the parties as to the determined Event Impact Areas. h. "Event Period"means the dates of Memorial Day Weekend annually.The Air and Sea Show shall take place annually on Memorial Day Weekend over a three-day period beginning on a Friday and ending on a Sunday. The Applicant may utilize the Thursday immediately preceding the Event as a practice day for performers and equipment utilized or performing during the Event. No concessions or hospitality tents shall be operating or open during the,practice day. The Event Period may be revised upon the mutual consent of the City Manager and the Applicant, and, if revised, any new Event period shall be memorialized as a formal written amendment to this Agreement, and shall be subject to approval by the City Commission. "Breakdown" shall mean the use of heavy equipment, machinery or vehicles which use backup alarms in the deconstruction of the Event structures in a manner that may produce noise or otherwise disturb area residents. The term Breakdown shall not include the clean-up or wind-down of Event operations in a manner that does not involve heavy equipment and machinery. j. "Event Site" means, the area within the City used to hold the Event and shall generally refer to the area east of Ocean Drive, from 5th Street — 15th Street; as more specifically described in Exhibit"A" hereto. k. "Maintenance of Traffic Plan" shall have the meaning given to such term in Section 6. "Public Safety Plan"shall have the meaning given to such term in Section 5. m. "Repair" shall mean any work (including all third party labor, supplies, materials and equipment) reasonably necessary to repair, restore, or replace any property, equipment, building, structure, ,or any other component within the Event Site, if such work is necessitated by any damage or destruction caused by (i) the acts or omissions of the Applicant and/or its employees, contractors, subcontractors, Page 2 and/or agents; and/or (ii) the acts or omissions of third parties, including licensees or invitees of the Applicant. n. "Restricted Event Area" shall mean the restricted area located within the Event Site utilized by Applicant for command and control, landing zone, operations, and hospitality. o. "Event Site Plan"shall have the meaning given to such term in Section 4. p. 'Term" shall have the meaning given to such term in Section 21. 3. PERMISSION TO USE, Subject to the terms and conditions in this Agreement, Applicant shall be entitled to use the Event Site, in order to conduct its Air and Sea Show. The actual extent of the area within the Event Site to be used shall be limited by the water line and the Maintenance of Traffic ("MOT") Plan. The right to use the Event Site shall not imply that the Applicant is allowed to close streets and transportation corridors that are defined as part of the Event Site, unless such closures are approved, in writing, by the City Manager, in his sole and reasonable discretion. The City Manager or his designee shall have the right to approve or deny the use of all promotional materials and advertising for the Event, which approval shall not be unreasonably withheld. If, upon review, the City Manager or his designee denies the use of certain promotional materials, the City shall identify with specificity the basis for such denial, and the Applicant shall use best efforts to remove the specifically restricted materials. Applicant agrees to list the City of Miami Beach as a co-sponsor of the Event on all promotional material and advertising for the Event. The parties agree that alcohol shall only be permitted in the Restricted Event Area Applicant's alcohol sales during the Event shall be governed in accordance with all applicable Florida Statutes and sections of the City of Miami Beach Code of Ordinances. 4. CITY SPECIAL EVENT PERMIT APPLICATION: Not less than one hundred twenty (120) days prior to the first day of the Event Period, Applicant shall complete and submit a Special Event Application and provide the City with the following: a. For the Event Site, a detailed Site Plan for the Event showing locations that will be designated for Applicant's exclusive use (including, without limitation the Restricted Event Area), detailing the locations of any tents, sanitary facilities, parking, stages, booths, concessions, alcoholic beverage service areas, etc. and the boundary lines, including those down to the waterline (as allowed by law), of any fences, barriers etc. to be constructed at the Event Site, and (the times when such borders, fences and/or facilities will be constructed, operated and dismantled. The Site Plan shall be subject to the review and approval by the appropriate City departments. After review by the appropriate City departments, the final proposed Site Plan shall be subject to the review and written approval of the City Manager. A final inspection will be conducted by the City immediately prior to the Event to ensure that the location of all tents, booths, sanitary facilities, stages, etc. are in accordance with the City approved Site Plan and all Applicable Laws. The City approved Site Plan shall be incorporated into this Agreement as Exhibit "D" hereto. Page 3 b. A description of all activities and events to occur at the Event Site, (including,, without limitation, the Restricted Event Area) including permissible activities and any maintenance of the waterline fence, barrier, and/or borders during the Event. c. The cellular and business phone numbers of the individuals in charge of the various aspects of the Event. d. Copies of all appropriate permits and licenses required by the City. These permits include, but are not limited to, permits necessary for tents, merchandise, food and beverage vendors, and electrical connections. e. All sponsors of the Event, all goods and services to be promoted, and all items to be distributed, sold, or given away must have the prior written approval of the City Manager, which approval if given at all, shall be at the City Manager's sole discretion. f. Applicant shall provide any other deliverable required by the City Manager, whether same is required pursuant to the City's Special Event Rules and Regulations, which are attached and incorporated as Exhibit " " hereto, or whether required in order to safeguard and ensure the health, safety, and welfare of the City's residents and visitors during the Event Period. 5. PUBLIC SAFETY PLAN FOR THE EVENT. Because of the physical size of the Event and the number of people that may attend, City shall arrange for all necessary personnel, at City's expense and further in such type, manner and number, as it may be determined by the City Manager, in his sole and reasonable discretional.judgement, to ensure the appropriate level of public safety at the Event Site and Event Impact Areas, but not for the Restricted Event Area, which shall be provided at Applicant's expense. The parties may consult with each other in regard to the levels of security, including the scaling down of such services for the set up and tear down of the Event. Applicant is required to provide signage, and will set up and remove such signage at no cost to the City. a. The Applicant shall .provide a Public Safety Plan for the City Manager's review and approval, no later than one hundred and twenty (120) days prior to the date of the Event. This plan shall include, but not be limited to, the Applicant's planned actions to respond to and mitigate various potential criminal and/or emergency incidents which may occur during the Event. The Applicant's Public Safety Plan shall be subject to review and approval by the City Manager. After receiving the Public Safety Plan from the Applicant, the City shall work with the Applicant in order to properly determine the number of personnel necessary to effectively and efficiently carry out the Public Safety Plan. The City shall develop an anticipated budget for the Public Safety Plan and other City services, and provide the anticipated budget to the City Manager. The City Manager shall have the absolute sole right and discretion to approve the Public Safety Plan, including any revisions or adjustments thereto. In the event of a disagreement between Applicant and the City regarding the number of personnel required for the Public Safety Plan and the anticipated budget of the Public Safety Plan, the City Manager's decision shall be final. The final City approved Public Safety Plan shall be attached and incorporated as Exhibit"B"to this Agreement. Page 4 b. Applicant shall make arrangements with the appropriate City department(s) to provide police, fire, ocean rescue and EMS protection. These arrangements must be reviewed and approved by the City. c. The parties will act in good faith to keep the other party notified of the latest information and any new developments or incidents that might cause additional public safety personnel to be deployed to the Event. d. In addition to the City approved Public Safety Plan, the City's Police and Fire Departments will author separate comprehensive Incident Action/Operational Plans specific to their duties. Such plans will take into consideration several factors, to include nationally accepted event planning and management guidelines utilizing the National Incident Management System (NIMS) and the Incident Command System (ICS). These plans will be fluid up until the conclusion of the event and may change based on real time intelligence, threat information, and other such inputs. Local representatives and agents from the Federal Bureau of Investigation (FBI) Special Events Unit, the Department of Homeland Security (DHS), Navy Criminal Investigative Service (NCIS), and other public safety partners will assist in determining the level and magnitude rating of this event, advise of any potential national security considerations, and provide intelligence gathering and event threat assessment assistance. Due to the sensitive security and safety implications of such plans, they will be kept confidential, accessible to City officials, Police/Fire personnel and Applicant only and shall not =be available for public or media distribution. e. The cost for any additional services or expansion of services requested by Applicant, in writing, beyond the services being provided by City for the Event, including the Event Site and Event Impact Areas, as established in the Event 'Permit Application, shall be an expense to Applicant and City shall be paid for all costs and expenses in association with any such additional or expansion of services provided:to Applicant. Expansion of services means enhancements of activities, any changes in the type of activities provided or changes in parameters of Event or the 'Event Impact Areas or the Event Site, caused by or requested by Applicant, including; physical location and boundaries that result in an increase in the City's cost to provide all necessary services. f. Should Applicant request non-critical public safety services, such as a police escort, or if such services are beyond the City's ability to provide, Applicant may make such arrangements and coordinate these services with the City. The cost for these additional services shall be an expense to Applicant, and all such costs and expenses shall be paid to City within the time frame as set forth in Section 19, Reimbursement of Costs and Expenses. g. In the event of an emergency or disaster during the Event, at the Event site or as a direct result from the Event activities, that requires public safety resources beyond the City approved Public Safety Plan, it shall be the responsibility of the Applicant to reimburse the City's reasonable additional cost to respond to such emergency or disaster. This section shall not apply to any natural disaster, act of terrorism, or act of God that may occur at the Event Site during the Event including, without limitation, a hurricane, lightning strike, tornado or any other such causes whatsoever beyond the control of the parties and unrelated to the Event Page 5 6. STREET CLOSINGS: The City Manager reserves the right, at his sole discretion, to approve all street closings, including those streets and transportation corridors that are defined as part of the Event Site, in association with the Event, and any requests for street closings shall be included with the MOT Plan that is submitted by Applicant. Applicant agrees to coordinate and make the appropriate arrangements with any merchants or residents affected by any street closures to ensure they are provided sufficient and reasonable access to their businesses and residences. a. Not less than one hundred and twenty (120) days prior to the date of the Event, Applicant shall provide to the City a MOT Plan for the City Manager's review and approval. The City approved MOT Plan shall be incorporated into this Agreement as Exhibit "C," containing a construction and automotive and pedestrian traffic flow schedule detailing the opening and closing times for all streets, lanes, pedestrian walkways and/or traffic corridors and outlining the use of any and all variable message signs for the City's review and approval. No street, lane or traffic corridor closures will be permitted unless included in the City approved MOT Plan. Applicant agrees to provide the City with emergency access to all areas included in the Event Site. Applicant acknowledges that traffic control plans shall accommodate the ingress and egress to residences during the course of the Event. 7. PARKING AND TRANSIT SERVICES: It will be ,the responsibility of Applicant to arrange, coordinate, and pay for all parking at City facilitiesand any transit services from these facilities to the Event Site. All proposed shuttle routes and bus stops shall be approved by the City Manager as part of the MOT Plan. City agrees to invoice Applicant at the approved special event parking rate for any public metered parking spaces that are removed from public use as requested by the Applicant and approved by the City Manager. All parking lot requests must be in writing at least ninety (90) days in advance of the Event. An estimate of parking charges will be provided to Applicant no more than fourteen (14) days after receiving written requests. Applicant understands that the approved special event parking rate is a daily rate and may not be prorated. 8. MAINTENANCE OF EVENT SITE AND EVENT IMPACT AREAS: a. Applicant shall be responsible for and shall provide sufficient temporary public sanitary facilities as to meet the requirements established by the City. Applicant shall provide daily service of the facilities at all times during the Event Period. The cost of such•temporary.public sanitary facilities shall be an expense to Applicant and all costs and expenses for facilities furnished by the City to Applicant shall be paid to City within the time frame as set forth in Section 19, Reimbursement of Cost and.Expenses. Applicant shall not be responsible to pay for clean-up of City public rest room facilities. b. The City shall be responsible for all clean-up costs and expenses associated with the removal of trash and debris that accumulates on any portion of Event Site, or in the designated Event Impact Areas. Applicant shall be responsible for all clean-up costs and expenses associated with the removal of trash and debris that accumulates on any portion of the Restricted Event Area. All trash shall be collected and removed throughout the Event with final clean-up being completed within 24 hours of the Event completion. The requirement to remove trash and debris includes street sweeping. The City will be responsible for and pay for all costs associated with trash and debris removal within the Event Site and Event Impact Areas. Page 6 c. In the event the Applicant wishes to utilize temporary mobile cellular communication service boosting) towers, which can also benefit public safety by increasing the E-911 capabilities of the specific service provider, the Applicant must notify the City Police and Fire Departments and agrees that the contracted equipment provider with whom they procure such equipment, services etc. will work closely with the City Radio Engineers to confirm the temporary towers will not interfere with the City or County public safety radio frequencies. 9. CONSTRUCTION OF FACILITIES, STRUCTURES, CANOPIES, TENTS AND CONCESSION STANDS; a. Applicant shall be allowed to construct and maintain, on the Event Site, such facilities and structures that are necessary for the Event including, but not limited to, fences, barriers, grandstands and signs, as approved by the City Manager and at such locations as approved by the City Manager. b. All such structures, facilities, concession stands and canopies erected on an agreed upon date after consultation with the City's Special Event staff, and deliveries related thereto, can be made to the Event Site, provided however that Applicant shall be entitled to set up no later than the Monday prior to the Event. All such structures must be removed within seventy-two (72) hours following the conclusion of the Event. Applicant shall be'permitted to erect canopies, tents, stages and/or concession stands to sell additional merchandise for the Event at City-approved locations within the Event Site. Any setup or tear down of such structures, shall be in accordance with the City's Noise Ordinance. c. Applicant is hereby granted permission to erect canopies, tents, and concession stands, at such locations in accordance with the approved Site Plan. It is further agreed and specifically understood that permission to erect such canopies, tents and concession stands, is conditioned upon Applicant complying with the following: (1) Applicant shall obtain approval by the City Fire Department and file with its application evidence that such canopies, tents, awnings and/or concession .stands which are to be used during the period of time encompassed by this Agreement are of fireproof material and will not constitute a fire hazard. City's Building Department must review and approve the proposed use of any temporary structure used in association with the.Event in accordance with the standard criteria as outlined in the City's Code of Ordinances and Florida Building Code. d. All construction, installations and services, including electrical hook-ups, shall be made at Applicant's expense and approved in advance by the City's Building Department. If electricity is required, Applicant shall negotiate arrangements for such service with the City or a licensed contractor. This cost shall be an expense to Applicant and, if furnished by City, shall be paid to City within the time frame as set forth in Section 19, Reimbursement of Costs and Expenses. e. Unless Applicant receives prior specific written permission by the City Manager, no construction or installations shall involve the use of stakes or other material that may Page 7 break the surface or deface any infrastructure such as asphalt, concrete, brick or any plant material. f. Applicant shall provide all day access passes to the necessary City staff required to work the Event. Applicant and City will agree to the list of passes that will be distributed for the Event at least ten (10) days prior to the Event. Additionally, Applicant shall provide an operations tent to be utilized by the City Manager during the Event days. Location of this operations tent shall be determined by the City Manager. 10. MAINTENANCE OF AND PAYMENT FOR DAMAGE TO PROPERTY: Regardless of the cause, Applicant shall be responsible for any damage to any and all property located or situated within the Restricted Event Area and the Event Site. It is further agreed that City shall inspect the Restricted Event Area and Event Site for damage no later than the Wednesday immediately following the Event, and if as a result of said inspection, damage is found to exist, City shall furnish Applicant with a written report of such damage by the close of business within fourteen (14) days following the Event. The report shall state the cost to be paid by Applicant to remedy the damage. This cost shall be paid by Applicant within fourteen (14) days after Applicant receives the City's report. 11. SECURITY: All construction materials, equipment, goods, signs and any other personal property of Applicant shall be protected solely by Applicant. Applicant acknowledges and agrees that City assumes no responsibility whatsoever for any such item and that the security and protection of any such item from theft, vandalism, the elements, acts of God, or any other cause, are strictly the responsibility of Applicant. 12. SUBLEASES ASSIGNMENTS, OR TRANSFERS: Applicant shall not assign, sublease or transfer any of its obligations or rights under this Agreement, in whole or in part, to any person. The foregoing notwithstanding, the City acknowledges that Applicant will have subcontractors providing services to Applicant in order for Applicant to effectuate this Agreement and the hiring of such subcontractors shall not be a violation of this paragraph. 13. LICENSES AND PERMITS; COPYRIGHTS, PATENTS AND TRADEMARKS: At least fifteen (15) days prior to the annual Event, Applicant agrees to secure and pay for all licenses, permits or other governmental approvals that may be required by any governmental agency having jurisdiction over the Event Site or any aspect of the Event, including, without limitation, any approval required by the City, Miami-Dade County, State of Florida and/or any agency of the U.S. government, and shall also.be responsible for obtaining an incidental take permit for the protection of sea turtles issued by the appropriate governmental agency. Additionally, if Applicant intends to use any item which is or may be protected from infringement, such as but without limitation, copyrights, patents and trademarks, if requested by City, Applicant shall provide City fifteen (15) days in advance of the first date of property use, evidence showing mat the applicable licenses, permits and/or permission have been secured and, if applicable, all fees have been paid in full by Applicant The provisions of this paragraph specifically apply to the American Society of Composers, Authors and Publishers ("ASCAP"), Broadcast Music Incorporated ("BMI") and any other similar organization mat may require written permission and payment of a fee for use of protected material. Applicant shall ensure that all performance payments required to be made under such licenses are made promptly and directly to the licensing organizations. Copies of all said licenses or reports shall be submitted to City upon request In the event Applicant fails to submit the licenses or reports as required herein or the documentation is not satisfactory to City, Applicant shall be responsible for payment to City for all license fees incurred by the City in connection with the Page 8 Event City shall have no responsibilities to any performing rights licensing organizations for any performance during the Event. 14. STANDARDS OF . CONDUCT; COMPLIANCE WITH RULES, REGULATIONS, ORDINANCES: Applicant agrees that at all times it will conduct its activities with full regard for public safety and will observe and abide by all federal, state and local laws, the federal and state constitutions, and all rules, regulations and ordinances of City and any other governmental agency having jurisdiction including, without limitation, those relating to noise, building, zoning, gambling, fire protection, liquor regulation, sanitation and food facilities and hours of operation. Applicant shall further take all precautions and use due care to conduct its operations in a safe and prudent manner with respect to its agents, employees and visitors to the Event. 15. INSURANCE: The applicant shall provide and maintain at all times during the term of any contract, without cost or expense to the City, policies of insurance, with a company or companies authorized to do business in the State of Florida, and which are acceptable to the City All required insurance will be placed with carriers licensed to do business in the State of Florida, having agents upon whom service of process may be made in the State of Florida, insuring the applicant against any and all claims, demands or causes of action whatsoever, for injuries received or damage to property relating to the performance of duties, services and/or obligations of the applicant under the terms and provisions of the contract. The applicant is responsible for timely provision of certificate(s) of insurance to the City at the certificate holder address evidencing conformance with the contract requirements at all times throughout the term of the contract. Such policies shall remain in full force and effect during the Event and shall specifically include those times of setup and breakdown in connection with the Event. Such policies of insurance, and confirming certificates Of insurance, shall insure the applicant is in accordance with the following minimum limits: a. General Liability insirance ,on forms no more restrictive than the latest edition of the Occurrence Form Commercial General Liability policy (CG 00 01) of the Insurance Services Office or equivalent without restrictive endorsements, with the following minimum limits and coverage: Each Occurrence/General Aggregate $1,000,000/2,000,000 Products-Completed Operations $2,000,000 Personal & Adv. Injury $1,000,000 Fire Damage $50,000 Medical Expense $5,000 Contractual Liability Included b. Liquor Liability with the following minimum limits and coverage: Each Occurrence $1,000,000 Annual Aggregate $1,000,000 c. Automobile liability insurance, including owned, non-owned, and hired autos with the following minimum limits and coverage: Combined Single Limit $1,000,000 Page 9 d. Workers' compensation insurance based on proper reporting of classification codes and payroll amounts in accordance with Chapter 440, Florida Statutes, and/or any other applicable law requiring workers' compensation (Federal, maritime, etc). If not required by law to maintain workers compensation insurance, the applicant must provide a notarized statement that if he or she is injured; he or she will not hold the City responsible for any payment or compensation. e. Employers Liability insurance with the following minimum limits and coverage: Each Accident $1,000,000 Disease-Each Employee $1,000,000 Disease-Policy Limit $1,000,000 f. Professional liability and/or specialty insurance (medical malpractice, engineers, architect, consultant, environmental, pollution, errors and omissions, etc.) insurance as applicable, with minimum limits of $1,000,000 and annual aggregate of$2,000,000. The City of Miami Beach shall be named as additional insured as their interest may appear on all applicable liability insurance policies. The certificate(s) of insurance shall provide for a minimum of thirty (30) days prior written notice to the City of any change, cancellation, or nonrenewal of the provided insurance. It is the applicant's specific responsibility to ensure that any such notice is provided within the stated timeframe to the certificate holder. If it is not possible for the Applicant to certify compliance, on the certificate of insurance, with all of the above requirements, then the Applicant is required to provide a copy::: of the actual policy endorsement(s) providing the required coverage and notification provisions. Certificate holder shall be: The City of Miami Beach' 1700 Convention Center Drive Miami Beach, FL 33139 Certificates of insurance shall evidence a waiver of subrogation in favor of the City, that coverage shall be primary and noncontributory, and that each evidenced policy includes a Cross Liability or Severability of Interests provision, with no requirement of premium payment by the City. Applicant is required to confirm that each vendor of the Applicant carry insurance coverage that meet or exceed the conditions paragraphs A-F and that the same limits apply to any and all vendors the Applicant uses for the Event. Applicant further confirms that Applicant's insurance will apply as excess over any other Page 10 valid and collectible coverage of their vendors. Said limits may be provided by purchase of an umbrella or excess policy. All self-insured retentions shall appear on the certificate(s) and shall be subject to approval by the City. At the option of the City, the insurer shall reduce or eliminate such self-insured retentions or the applicant or subcontractor shall be required to procure a bond guaranteeing payment of losses and related claims expenses. The City shall be exempt from, and in no way liable for, any sums of money, which may represent a deductible or self-insured retention in any insurance policy. The payment of such deductible or self-insured retention shall be the sole responsibility of the applicant and/or sub-contractor::providing such insurance. If Applicant fails to deliver an insurance certificate, the City's failure to request delivery shall in no way be construed as a waiver of Applicant's obligation to provide the insurance coverage specified herein. Failure to obtain and maintain such insurance as set out above will be considered a breach of contract and may result in termination of the contract for default. • Neither approval by the City of any insurance supplied by the applicant or Vendor(s), nor a failure to disapprove that insurance, shall relieve the applicant or Vendor(s) of full responsibility for liability, damages, and accidents as set forth herein. 16. INDEMNIFICATION AND HOLD HARMLESS: Applicant shall indemnify, defend and hold harmless City, its officers, agents, and/or employees, against any and all damages, claims, losses, liabilities and expenses (including, without limitation, reasonable legal fees and disbursements) caused by, in connection with, arising out of, or resulting from the use of the Event Site, or caused by, in connection with, arising out of, or resulting from any act by Applicant, its partners, employees, officers, contractors, and/or agents done in the performance of this Agreement. If called upon by City, Applicant shall defend not only itself, but also City in connection with any such claim, at Applicant's expense, and at no expense whatsoever to City. Applicant further agrees to defend, indemnify, save and hold harmless the City and the City's officers, agents, and employees from any claim, suit, loss, cost or expense or any damages arising out of or relating to Applicant's failure to obtain all necessary performing rights and licenses for the event (BMI, ASCAP, etc.). 17. REIMBURSEMENT OF EXPENSES: The City and Applicant shall be responsible for the costs and expenses associated with Police, Fire, Ocean Rescue, EMS and Sanitation services within the Event Site and Event Impact Area, as provided herein. City shall be responsible for initial expenses up to the amounts associated with Memorial Day Weekend for the immediately preceding calendar year, adjusted annually for either (1) wage increases for personnel for the foregoing City departments or (2) inflation utilizing the United States Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers; U.S. City average (1982-84=100), whichever is lower, for the Event (the "City's Initial Contribution"). Applicant shall be responsible for all City's costs and expenses above the City's Initial Contribution up to the maximum not-to-exceed amount of $200,000, with City and Applicant to be mutually responsible for all costs in excess thereof. Applicant shall reimburse City for any amounts due under this Agreement within fourteen (14) days of receipt of any invoice from City. The Applicant has the right to request an audit of any amounts being billed to Applicant under this Agreement. This audit will break down all charges and their related costs. Page 11 18. BOND: a. Applicant agrees to secure a bond in an amount equal to one hundred and ten percent (110%) of the estimated cost of services for the Applicant requested additional services or expansion of se_rvices requested by Applicant, for the Event including, without limitation, public safety, maintenance, cleanup, utility connections, breakdown and removal, storage and repair or replacement of property. City reserves the right to approve the bonding company or institution issuing the bond and the instrument shall be kept in full force and effect for the period of the Agreement. b. No later than thirty (30) days prior to the date of permission from City to first use the Event Site, Applicant shall provide the City with a`valid payment bond in the amount specified above. The bond shall be written by a corporate surety company holding a Certificate of Authority from the Secretary of Treasury of the United States, executed and issued by a resident agent licensed by and having an office in the State of Florida, representing such corporate surety, providing that if Applicant fails to duly pay for any labor, materials, or other supplies used by Applicant, the surety will pay the same in the amount not exceeding the sum provided in such bond. Applicant shall also have the option to escrow the funds in an amount equal to one hundred and ten percent (110%) of the cost of reimbursement for City services ("Obligated. Amount") in which case a bond would not be required by the City. The Obligated Amount shall be placed into the City to be held in escrow under the terms and conditions hereinafter set forth ("Escrow Deposit"). c. The City's Chief Financial Officer shall be the Escrow Agent, the Escrow Agent shall promptly deposit, retain and disburse the Escrow Deposit in accordance with the terms hereof or as may be.directed in writing by both the Applicant and City Manager on behalf of the City or as may be directed by a court of competent jurisdiction. d. If the Escrow Agent is in doubt as to his or her duties, the Escrow Agent shall retain the Escrow Deposit until Applicant and City, through its City Manager, collectively agree in writing to the disposition of the funds or until a court of competent jurisdiction has adjudicated the rights of Applicant and the City. e. Any suit between Applicant and City where Escrow Agent is made a party because of acting as Escrow Agent, or in any suit where Escrow Agent interpleads the Escrow Deposit, Escrow Agent shall recover reasonable attorney's fees and costs from the Escrow Deposit, as between Applicant and City, and such fees and costs shall be charged and assessed against the non- ; prevailing party. f. The parties agree that the Escrow Agent shall not be liable to any party or person for misdelivery of the Escrow Deposit or any portion thereof to Applicant or City, unless misdelivery is due to willful breach of the terms hereof or gross negligence on the part of Escrow Agent. Page 12 19. Use by Applicant of the Property shall be coordinated by the City Manager or his designee. The City Manager or designee shall have authority to suspend all or any part of the activities of Applicant when, in the City Manager's opinion, such activities may be or are detrimental to the public or to the City, or if the City has reason to believe any law or ordinance is being violated by Applicant, its agents or employees, which conduct is not corrected within forty eight (48) hours of written notice to Applicant. City reserves the right through the City Manager to suspend or terminate use of the Property if visitors become unruly, and to reject any sponsor, presentation, material or item which is or may be, in the sole opinion of the City Manager, hazardous, offensive, immoral or disparaging to the image of the City, or to any person or group of persons. The decision of the City Manager in such regard shall be final, binding and conclusive, but shall not be arbitrarily exercised. 20. TERM AND TERMINATION: The City hereby grants to the Applicant the exclusive right and privilege to conduct the Air and Sea Show annually for an initial::period of five (5) years, subject to the following conditions: a. The Applicant may conduct the Air and Sea Show annually for the term of this Agreement, unless the City should decide to discontinue the Air and Sea Show with notice to the Applicant. The only method for cancellation of the Agreement is by Motion approved by the City Commission. The City shall notify the Applicant of its intent to cancel the Air and Sea Show prior to July 30 of the year preceding the next scheduled Air and Sea Show. However, in all instances City shall have ninety (90) days from the date the last Air and Sea Show ends to notify Applicant of its intent to cancel. Applicant shall be given fourteen (14) days' notice of the City Commission meeting at which such cancellation shall be determined. If City elects to discontinue, City shall not produce or permit the production of an air and sea show on City's beach for two (2) calendar years after the year the last Air and Sea Show is produced by the Applicant. b. The Applicant may elect, during the term of this Agreement, to terminate this Agreement and no longer conduct the Air and Sea Show. If the Applicant elects to terminate this Agreement, the Applicant shall notify the City in writing of such election prior to the July 15 of the year preceding the next Air and Sea Show Event. If the Applicant elects not to conduct the Air and Sea Show in a particular year or elects not to seek an extension of the terms of this Agreement, this Agreement will automatically terminate. 21. GOVERNING LAW AND ATTORNEY'S FEES: This Agreement shall be governed by the laws of the State of Florida, with venue lying in Miami-Dade County. In the event of any dispute which arises out of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees and costs, including bankruptcy and/or appeal if any. 22. ASSIGNMENT: No assignment of the rights, interest or obligation under this Agreement shall be made by either party without the written consent of the other. 23. AMENDMENT: No modification amendment or alteration of the terms or conditions contained herein shall be effective unless contained in a written document executed by the parties hereto, with the same formality and of equal dignity herewith. Page 13 24. EXTENT OF AGREEMENT: This Agreement represents the entire and integrated Agreement between City and Applicant and supercedes all prior negotiations, representations or agreements either written or oral. 25. NOTICE: Whenever any party desires to give notice to any other party, it must be given by written notice sent by registered United States mail, with return receipt requested, addressed to the party for whom it is intended at the place designated below and the place so designated shall remain such until they shall have been changed by written notice in compliance with the provisions of this section. For the present, the parties designate the following as the respective places for giving notice: CITY: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Manager APPLICANT: A National Salute to America's Heroes, LLC, a Florida Limited Liability Company c/o Michael I. Kotler, Esquire 54 SW Boca Raton Boulevard Boca Raton, Florida 33432 26. CORPORATE STATUS: This Agreement shall automatically terminate if, within thirty (30) days from execution of this Agreement, Applicant does not provide City with proper certification from the State of Florida.that Applicant has registered to do business in the State of Florida. IN WITNESS OF THEFOREGOING, the:parties have set their hands and seals the day and year first written above. ATTEST: CITY OF MIAMI BEACH, FLORIDA Rafael E. Granado, City Clerk Philip Levine, Mayor Page 14