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Resolution No. 2011-194RESOLUTION NO. 2011-194 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND FILML.A., INC. FOR FILM PERMITTING SERVICES WHEREAS, the City of Vernon ("City") desires to obtain the services of a qualified contractor to provide film permitting services and coordination within the City (the "Services"); and WHEREAS, the Fire Department has determined that FilmL.A., Inc. ("FilmL.A.") is qualified and capable of providing the Services; and WHEREAS, by memo dated November 2, 2011, the Fire Department recommends the City enter into a services agreement with FilmL.A. setting forth the terms and conditions under which FilmL.A. will perform the services (the "Agreement"). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Agreement with FilmL.A., Inc., a copy of which is attached hereto as Exhibit A. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for, and on behalf of, the City of Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby directs the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized. SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk's designee, to send a fully executed Agreement to: FilmL.A., Inc. Attention: Paul Audley, President 1201 w. 5th Street, Suite T-800 Los Angeles, CA 90017 SECTION 6: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 15th day of November, 2011. Name: Hilario Gonzales Title: Mayor 2 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2011-194, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, November 15, 2011, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this (7 day of November, 2011, at Vernon. California. (SEAL) - 3 - EXHIBIT A CONTRACT NO. BY AND BETWEEN, THE CITY OF VERNON, a municipal corporation (City), and FILML.A., Inc (Contractor) WHEREAS, there is a need for efficient film permit coordination services to provide a more favorable environment within the City to encourage filming and still ensure that filming activities outside of a studio are conducted in a manner that protects the public interest, including public safety, and balances the needs of the general public with the needs of the filmmaker; and WHEREAS, the City is authorized to contract with private agencies including non-profit corporations for the operation of City programs; and WHEREAS, the City Council has determined that public purposes will be served by entering into this Contract with the Contractor for the coordination of film permits; and WHEREAS, the Contractor is duly incorporated pursuant to the California Non - Profit Public Benefit Corporation Law and is authorized by law to provide services and collect fees contemplated by this Contract; and WHEREAS, the Contractor is qualified by reason of experience, preparation and organization to provide the services contained within this Contract. NOW, THEREFORE, in consideration of the mutual covenants, representations, and agreements herein set forth and mutual benefits to be derived therefrom, the parties agree as follows: Section 1. Term of the Contract The term of this Contract shall be annual from the date of execution unless terminated earlier in accordance with Section 7. Upon mutual approval of the City and Contractor 30 days prior to expiration, the term of this Contract may be extended additional periods of one (1) year under the same terms and conditions contained herein. Section 2. Activities to be Performed The Contractor shall perform all the services set forth in the Scope of Work, Exhibit A, to this Contract, a copy of which is attached hereto and incorporated herein by this reference. Section 3. Contract Administration The City Administrator, or designee, shall have full authority to act for the City in the administration of this Contract, consistent with the provisions contained herein. Film Permits are approved for release by the Vernon Fire Department which is the Permit Authority. Section 4. Reporting Requirements The Contractor shall provide information to the City as required in Exhibit B to this Contract, a copy of which is attached hereto and incorporated herein by this reference. The City Administrator, or designee, and Contractor shall mutually agree on the acceptable format and methodology for submission of this information. The City Administrator or designee shall also have the authority to make minor adjustments to reporting timeframes, provided that all required reports are still provided in a timely manner and reflecting the information originally intended. Section 5. Contract Notices Written notices pertaining to this Contract shall be directed to: President FilmL.A. Inc. 1201 W. 5t" Street, Suite T-800 Los Angeles, CA 90017 City Administrator City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Section 6. Incorporation of Exhibits, Precedence of Documents Hereby incorporated by reference into this Contract are Exhibits A through B, which are attached hereto. In the event of any inconsistency between the provisions of this Contract and the Exhibits, the inconsistency shall be resolved by giving precedence in the following order: • The Body of this Contract (Through and Inclusive of Section 18) • Exhibit A— Scope of Work • Exhibit B — Reporting Requirements Section 7. Termination Either party may terminate this contract by giving 30 days written notice to the other party. The termination will be effective 30 days after the receipt of the written notice. Contract provisions for indemnity, statements, audits, payments, and refunds survive termination. The City may immediately terminate this Contract for cause. Cause shall be defined as: • the lapse of insurance as required herein after a reasonable period for cure by the Contractor; -2- • violation of city or state ethics or lobbying laws; • the discovery of organized, sustained activity that the Contractor is unwilling to cease; • the initiation of bankruptcy proceedings or the loss of managerial control of the Contractor to another party, including regulatory entities; • gross negligence in the performance of the duties under this Contract; Should termination of this Contract by the City be done for cause, the Contractor shall: • Provide to the City and its agents, and grant a perpetual, royalty free license to use, all information collected, created and used under the performance of this Contract ("data") in a form facilitating the immediate use of the information within 24 hours (48 hours for information stored off - site). This will include, but not be limited to, statistical, informational, operational, financial, legal and relevant personnel information; • Provide a period of continued access to the City, free of charge, for the use of any and all software and computer systems which the Contractor own(s)(ed) and utilize(s)(ed) in providing services under this Contract not to exceed 30 days, during which time the City and Contractor may enter into a license agreement for ongoing use by the City of the Contractor's software system. The terms of such license agreement shall be reasonable as compared to similar software license agreements. • In the alternative, if both parties agree, the City may negotiate to acquire the source code for, and other rights to, the software owned by the Contractor. Section 8. Compensation to Contractor The Contractor shall develop and maintain fee structures which eliminate the costs to City or its taxpayers. Contractor will receive no compensation from the City for the activities performed in connection with this Contract. The Contractor may charge its Entertainment Industry Customers a fee for each and any service contractor provides under this Contract as provided in Section 16. Section 9. Environmental Impact The Contractor shall take all reasonable steps to minimize impact on the environment and cooperate with City efforts to protect the environment. City may prohibit productions outside of enclosed building that portray sexual exposure or excessive violence. Section 10. City Access to Contractor The Contractor shall provide priority handling of all phone calls, emails and all other communications from City staff to contractor management. -3- Section 11. Monitoring and Evaluation The Contractor shall ensure: that authorized representatives of the City have the right of access to activities, records and facilities operated by contractor under this Contract without prior or advance notice being given to the contractor. Activities include attendance at meetings of the contractor's Board of Directors (if such a Board exists), observation of on -going contractor outreach efforts, compliance with audits and provision of any/all on -site records (including electronic) within 24 hours of the request of the City. Exceptions shall include confidential employee matters and litigation. If records are stored off -site, they shall be kept in a manner that allows for the provision of the records within 48 hours. Approval of the City Contract Administrator must be obtained for a method of storage that will result in more than 48 hours to access records. the cooperation of its staff and contractor's board members, in their official capacities (if such a board exists). The City Contract Administrator or designee, at its discretion, may periodically conduct performance or financial reviews of contractor. These reviews may focus on any topic including, but not limited to, the extent to which the terms of the contract are being fulfilled, customer and public satisfaction with the duties contractor performs, the outreach efforts that have been implemented, the measurable goals achieved, the effectiveness of outreach management, and the impact of the outreach. Section 12. Non -Discrimination and Equal Treatment of Customers No person shall, on the grounds of race, sex, creed, color, religion, handicap, political affiliation or belief, national origin, sexual orientation, marital status, medical condition or age be excluded from participating in, be refused the benefits of, or otherwise be subjected to discrimination in any activities, programs or employment supported by this Contract. The Contractor shall provide equal treatment to all similarly situated customers seeking a permit to film motion pictures, television shows, music videos, still photos or other purposes; seeking notification services; seeking to make comments or complaints about filming matters; and any other customers seeking services provided by contractor to the City. Contractor will indemnify the City from the impact of not providing equal treatment. Permit and other requests will be judged solely upon the merits of the request. Section 13. Public Records Act The Contractor shall be familiar with the California Public Records Act and must supply all information to persons or members of the public requesting information as may be required under such act. If a dispute arises among the City, the contractor and a person requesting information, the City will notify the contractor so that contractor has the opportunity to seek a court order precluding the disclosure of such information. In the absence of the contractor obtaining such an order, the contractor must release the information. Contractor acknowledges that all information generated as a result of this contract is part of the public domain and subject to the California Public Records act. This includes permit data, location information, permittee data, revenue, costs, notification data and complaints. Contractor should take care to separate data that is proprietary so that public domain data can be accessed easily and in a timely manner. Section 14. Insurance (a) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Comprehensive General Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by Contractor or Contractor's officers, employees, or agents. (b) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Comprehensive Vehicle Liability insurance covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit, covering any vehicle utilized by Contractor or Contractor's officers, employees, or agents in performing the services required by this Agreement. (c) Contractor agrees to maintain in force at all times during the performance of work under this Agreement workers compensation insurance as required by law. (d) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Excess Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, and provide policy coverage and terms at least as broad as those required in the primary insurance. -5- (e) Contractor shall require each of its sub -consultants or sub- contractors to maintain insurance coverage that meets all of the requirements of this Agreement. (f) The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a B+; VII in the latest edition of Best's Insurance Guide. (g) Contractor agrees that if it does not keep the aforesaid insurance in full force and effect City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may take out the necessary insurance and pay, at Contractor's expense, the premium thereon. (h) At all times during the term of this Agreement, Contractor shall maintain on file with the Risk Manager, a certificate or certificates of insurance, satisfactory to the City Attorney and Risk Manager, along with a copy of the policy declarations page for each policy showing that the aforesaid policies are in effect in the required amounts. Upon request by City, Contractor shall cause its insurers to issue certified copies of the insurance policies evidencing that the coverage and policy endorsements required under this Agreement are maintained in force. Contractor shall, prior to commencement of work under this Agreement, file with the Risk Manager, such certificate or certificates and a copy of the policy declarations page for each policy. The policies of insurance required by this Agreement shall contain an endorsement naming the City, its officers, officials, employees, agents, and volunteers as additional insured's. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days prior written notice to City, and specifically stating that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. (i) The insurance provided by Contractor shall be primary to any coverage available to City, and any insurance or self-insurance maintained by City, its officers, officials, employees, agents, or volunteers shall be excess of Contractor's insurance and shall not contribute with it. The policies of insurance required by this Agreement shall include provisions for waiver of subrogation. Contractor hereby waives all rights of subrogation against City, its officers, officials, employees, agents, and volunteers. () Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, Contractor shall either reduce or eliminate the deductibles or self -insured retentions with respect to City, or Contractor shall procure a bond guaranteeing payment of losses and expenses. Section 15. Policies and Procedures The Contractor shall develop and maintain clear, written non-proprietary policies and procedures of their operations and processes they use. It is further expected WE that these policies and procedures be shared and made available for review by the City Contract Administrator and Permit Authority. To the extent that the policies and procedures impact City operations, approval of the Contract Administrator must be obtained prior to implementation. Section 16. Contractor Fees The Contractor may charge its Entertainment Industry Customers a fee for each and any service contractor provides under this Contract. Changes to the fees must provide the Entertainment Industry Customers and the City Contract Administrator at least 30 days notice. The City has the right to review the fees that the contractor charges its Entertainment Industry Customers. The City may require that the fees be changed if, fee increases exceed the change in the Consumer Price Index for all goods and services for the Los Angeles Metropolitan area for the preceding period. The preceding period shall begin with either the effective date of this Contract or the effective date of the most recent change in fees, whichever is later. The preceding period shall end with the proposed effective date of the proposed fee increase. Section 17. Reserve for City Fees The Contractor shall, at all times, maintain a cash balance equal to at least twice the average monthly amount of City Fees paid by contractor to the City during the prior fiscal year (i.e., from July 1 through June 30), which will not be used to pay operating expenses. Maintain as part of its accounting system a separate account showing the amount of City Fees that the contractor estimates it may become obligated to pay as a result of on -location filming by its Entertainment Industry Customer. Section 18. Arbitration and Venue Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitration in Los Angeles, California. The arbitration shall be administered by JAMS pursuant to its Streamlined Arbitration Rules and Procedures. The arbitrator shall be a retired judge. All decisions of the arbitrator shall be in writing, and the arbitrator shall provide written reasons for their decision. The arbitration decision shall be final and binding on the Parties. Judgment on the award may be entered in any court having jurisdiction pursuant to this Agreement. This clause shall not preclude Parties from seeking provisional remedies in aid of arbitration from a court having jurisdiction pursuant to this Agreement. The exclusive jurisdiction and venue under this Agreement shall be the Superior Court of California, Los Angeles County. e3Z Section 19. Attorneys Fee In the event a dispute, claim or litigation arises regarding this Agreement, the prevailing party shall be entitled to reimbursement for reasonable attorneys fees and actual costs, which may be set by the arbitrators or the court in the same action or in a separate action brought for that purpose, in addition to any other relief which is obtained. [Signatures Begin on Next Page] WE IN WITNESS WHEREOF, the parties have caused this Contract to be executed by their duly authorized representatives. City of Vernon, a California charter City and California municipal corporation 0 Mark Whitworth City Administrator ATTEST: Willard G. Yamaguchi, City Clerk APPROVED AS TO FORM: MMKWl)0WXWM)W Willard G. Yamaguchi, Chief Deputy City Attorney FilmL.A., Incorporated, a California corporation By: L-7-(Guctr"�l Name: foul A#AAIC Title: lPreSiale+rt By: AWL Name: D2nice. &(Ate,6es Title: CWie� RnA,ACia.k Wicer- EXHIBIT A SCOPE OF WORK A. The Contractor shall provide services to the City in the following categories as described below: 1. Film Permit Coordination Services The contractor will assist Entertainment Industry Customer with securing film permits within the City of Vernon. The contractor will operate with the following purposes: • Coordinate the film permit process in a centralized manner within the parameters established by the City; • Coordinate the film permit process in order to assure that filming will be conducted at such times and in such a manner as to cause a minimum of interference with neighborhood and commercial/industrial districts; • In coordination with the City, develop and implement community outreach programs for residential and commercialrndustrial districts on a proactive basis; • In coordination with the City, improve conditions relating to motion picture, television and photography activities for the Vernon City area; and, • If requested by the City, attend meetings with stakeholders to mediate disputes, determine impacts of filming and other permit related activities on specific neighborhoods, participate in neighborhood council and other group meetings, answer questions of stakeholders, or discuss the economic impact of filming. The contractor shall perform the following tasks: • Coordinate processing of film permit applications from Entertainment Industry Customers; • Interface with City departments with respect to permit applications to obtain input in developing permit terms and conditions (including any general terms, conditions and restrictions applicable to all permits), coordination logistics relating to filming activities and perform other functions needed to assist in permit evaluation and processing; • Ensure that the description of activity on permit applications provided to the City is accurate and detailed, especially activity that is likely to generate public concern such as screams for help, screeching tire, etc.; • Provide guidance and advice on the permit process to Entertainment Industry Customers; • Coordinate with the City on the dissemination of filming related information on the internet; • Make recommendations that reflect the needs of the community, the City and the production company to City departments with respect to the handling and processing of individual permit applications and the development of permit terms and conditions; -10- • Provide pre -production walk-throughs to assess and mitigate impacts of proposed film activities when requested by Industry, the City or when the Contractor's experience and judgment dictate; • Upon Contractor's receipt of approval by the City Permit Authority, Contractor will release film permits issued by the City Permit Authority to Entertainment Industry Customers; • The Contractor will coordinate and release permit revisions and/or extensions subsequent to the release of an original permit. However, concurrence must be obtained from the Vernon Fire Department or designee officer and/or designated City personnel; • Respond to complaints (See Section 3); • Collect funds (including estimated City fees), process refunds (if warranted) and make monthly remittances of amounts due to the City; • Provide filming data, records, reports and background information (See Exhibit 13): • If requested, provide advice to the City regarding filming policy and the permit process; • If requested by Entertainment Industry Customers, the Permit Authority or by requirement of Special Filming Conditions, provide monitor services at specified locations permitted for filming. Approval of the City Permit Authority shall be obtained prior to implementation of any polices or procedures which identify a protocol of when, where, at what time and under what circumstances and conditions contractor monitors will be required for permitted activity; and • If requested, collect DOT signs posted on a temporary basis as a result of filming for specified locations. Specified locations include all locations which require a contractor monitor as well as any location in which contractor staff reasonably expects to be on location at the completion of permitted activity. • Permits shall be coordinated in a time frame which allows proper review and approval by City personnel, including but not limited to: the posting of lane, street and road closure requests; and the assignment of required City personnel. All permit requests made to the contractor and transmitted to City Departments for review must be made in advance of the requested activity and in accordance with the existing City departmental policy. The City will seek to minimize required turnaround times to the extent possible. • All requests provided to the Permit Authority for the review and approval must contain all reviews and recommendations already obtained from other City departments. The comments and recommendations from various departments may be sought simultaneously. However, when department reviews are sought from departments other than the Permit Authority, the contractor shall include the reviews and recommendations already obtained. • The release of approved permits to Entertainment Industry Customers shall be accomplished in a manner that allows the Customer to understand the limitations placed upon the requested activity and allows for sufficient community notification. - 11 - • In all instances where neighborhood filming guidelines or other City policies exist that require a community survey, the community survey must be conducted in advance of the beginning of the permitted activity, unless stated otherwise in a separate guideline or policy adopted by the City Council. The community survey may be conducted by the production company, the Contractor or a Subcontractor. • Maintain standard office hours a minimum of 8 a.m. to 6 p.m., Monday through Friday, with the exception of City holidays. • Collect estimated City fees from Entertainment Industry Customers in advance of releasing a film permit and pay the City within 60 calendar days of receiving a final invoice for City Fees. • Process requests for refunds from Entertainment Industry Customers within 30 calendar days of receiving final documentation that indicates a refund is due. • For specified locations, where monitors or other designated contractor staff are assigned contractors will collect and account for all signs City reports as being posted immediately following the conclusion of permitted activity. All signs collected will be returned to City following the conclusion of the permitted activity. Along with the signs, contractor will submit a brief report containing the number, type of, and location of signs collected and returned by contractor. 2. Notification Services The contractor will provide notification services. The contractor will operate with the following purpose: Provide services to nearby residents and businesses and City entities, of upcoming filming. The contractor(s) shall perform the following tasks: • Provide notification services, including the creation and posting of notices (giving special attention to the language needs of the community); • Ensure that the description of activity on notifications is accurate and detailed, in particular, activity that is likely to generate public concern such as screams for help, screeching tires, etc.; • Maintain detailed, accurate records related to all services provided under this contract and made available fore review by the City, including, but not limited to: sample notice, a map of the area where the notice was distributed to, and any issues encountered in conducting the notice and the resolution of those issues; • Provide notification data, records and background information; • Provide advice to City officials and departments regarding the notification process; and, • Respond to inquires regarding the notification process from City officials. -12- 3. Complaint Referral Services The contractor will provide complaint referral services to assist with the timely resolution of community and entertainment industry complaints. The contractor shall perform the following tasks: • Receive complaints on a 24 hour/7 day a week basis and address them in a timely manner, including the appropriate referral of complaints to appropriate City personnel and contractors; • Provide complaint data, records and background information; • Provide advice to City officials and departments regarding filming policy and complaints received; • Receive and respond to complaints regarding filming from City officials and departments, including the appropriate referral of complaints to appropriate City personnel and contractors; • Review written stakeholder comments and complaints and, in consultation with the City, prepare written responses to the comments or complaints. • Refer complaints to appropriate City personnel and contractors within 15 minutes if the activity is currently in progress. If there is no after hours contact provided by a City department then the call shall be referred to the Permit Authority in a manner determined by the Permit Authority. • If a complaint is received and the activity is no longer in progress, respond to the complaint on an initial basis within one (1) calendar day and finalize/complete any responses, including written, if necessary, within seven (7) calendar days. • Provide response services to complaints on a 365 days -a -year, 24 hours - a -day, 7 days -a -week basis. 4. Maintenance of Records The Contractor is expected to provide appropriate record keeping and separation of assets and liabilities related to services provided under this Contract (separate from other business activities provided by the company). Record keeping details should also separately account for the three different types of services provided under this Contract. 5. City Fees The Contractor shall remit all City Fees monthly. • The Contractor shall not deduct from any remittance to the City any transaction fees or other costs incurred as a result of accepting payment from its entertainment industry customers in the form of credit card, debit, wire transfer, check, or other forms of payment. • The Contractor shall remit City Fees to the City with U.S. currency and may not reduce payments to the City by costs associated with the conversion of foreign currency to U.S. currency. • For film permits coordinated through Contractor, Contractor not the Entertainment Industry Customers, is obligated to pay to the City all City Fees other than those customarily collected by the City directly from the Entertainment Industry Customers. If the Contractor desires to adopt a -13- regular business practice allowing Entertainment Industry Customers to obtain permits on credit, it may do so. However, the Contractor would still be required to remit all City Fees within 60 calendar days of receiving a final invoice for City fees regardless of their ability to collect from individual Entertainment Industry Customers. The Contractor may collect deposits from its Entertainment Industry Customers so if violations occur deposits can be used to pay for feesffines/financial penalties. The Contractor shall, after receiving from the City a final invoice for City Fees, pay to the City, in the United States currency, all City Fees invoiced with the next regularly scheduled payment. The Contractor shall act in good faith in disputing any City Fees billed (either timely or late) by the City, and contractor and the City will act in good faith to resolve any such dispute within a reasonable time. Once the dispute as to any City Fees is finally resolved, either by agreement between contractor and the City or by legal action or some other agreed - upon dispute resolution method, contractor will pay such City Fees at the same time as the next normal payment is due to the City. However, payment of disputed fees shall be separated out from the normal payment. If contractor fails to pay all or any portion of City Fees within the time payment of such fees is due as set forth in this section, the payment of the unpaid portion will be considered late. o If a payment remains unpaid for more than 30 calendar days after it is considered late, such unpaid amount of City Fees will be considered delinquent and subject to a penalty of 1% of the delinquent amount. o If a payment is delinquent for more than 30 calendar days, delinquent amounts (including the 1% penalty) will also be subject to interest charges. Interest on such delinquent amounts will be calculated at a rate equal to the prime rate at the time such unpaid City Fees become delinquent plus five percent, and interest will accrue at that rate from the date the unpaid City Fees became late until payments made by contractor. 6. Emergency Response and Coordination The Contractor shall assist the City in responding to unusual occurrences and large scale emergencies when a state of emergency is declared by the City, including cancelling, revoking or not processing permit requests and communicating with the Entertainment Industry. The Contractor shall direct its staff to cooperate fully with the City and follow the direction of the Contract Administrator, the Mayor, the Emergency Operations Board and the Emergency Operations Organization for the duration of the local emergency. -14- The Contractor shall, as requested cooperate with City efforts to recover costs associated with the Emergency from the federal and state governments. The Contractor shall, as requested, coordinate the dissemination of emergency related information to the entertainment industry and assist the City in canceling, delaying, rescheduling and relocating filming and managing the related public relations. 7. Marketing Program Maintain a web site providing information about City facilities available for filming. Such site shall include photographs along with contact information for the City department that schedules filming activity at the facility. If for any reason Contractor is unable to continue providing a location library web site, it shall make available to the City of Vernon, free of charge, any photographs, documents, or systems owned by Contractor, which compromised the location library. If requested by the City, cooperate with City efforts to enhance and retain jobs (within the City) in all segments of the entertainment industry including multimedia and other new emerging technologies. However, Contractor shall not be required to expend its own financial resources to accomplish such programs. -15- EXHIBIT B REPORTING REQUIREMENTS unL vWW1U111aL1y11 — MOUVILIIIU RCUVIICIIICIILS 1. The Contractor shall submit to the City Administrator, within 30 calendar days after the end of each quarter, quarterly summaries of permit volume, amounts collected from Entertainment Industry Customers and amounts paid to the City in City Fees. These reports should indicate any significant changes when comparing the current quarter with previous quarters, or when appropriate, the same quarter from previous years. 2. The contractor shall submit to the City Administrator, on a monthly basis, in a format approved by the Contract Administrator, a list of all of its Entertainment Industry Customers, including: the Production Company's name any known contact personnel, as applicable; address; telephone number; contact person; type of production; production title; and requested filming location(s) and date(s). 3. The Contractor shall submit to the City Administrator an annual report addressing the impact of City policies, rules and regulations on filming in the City and recommendations to improve the environment for on -location filming in the City. 4, The Contractor shall submit to the City Administrator a written copy of all non-proprietary policies and procedures for all aspects of the process of obtaining a film permit (financial, procedural and otherwise) and submit subsequent changes to those policies and procedures within 15 days of the change. Proprietary policies and procedures shall be provided for inspection but will not be provided in a manner that creates a public record absent a court order. 5. The Contractor shall submit a reconciliation statement and aging report with each payment of City fees. The reconciliation report shall detail the fees being submitted and related permit information. The aging report shall show the amount of City fees for which Filml- A. has not received a final invoice after completion of filming activity. Should the aging report show that a City department has not submitted final invoices for at least 60 days after completion of the filming activity, the City Administrator will notify the City department and request submission of final invoices to FilmL.A. within 30 days. Should the aging report show that a City department has not submitted final invoices for at least 90 days after completion of the filming activity, the City Administrator will forward the Aging report, along with detail provided by FilmL.A. to the Mayor and City Council. -16- Notification Services — Reporting Requirements 6. The Contractor shall submit to the City Administrator, within 30 calendar days after the end of each quarter, quarterly summaries of notification volume and amounts collected from Entertainment Industry Customers. Complaint Referral — Reporting Requirements 7. The Contractor shall maintain a record of all complaints lodged by the City, on behalf of the City or a City resident or business concerning on - location filming events in the City. A report on complaints will be provided on a quarterly basis as determined by the City Administrator and the Permit Authority as well as a compilation of data provided annually. Complaint data, records and background information provided must be clear and complete. -17- OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 November 29, 2011 FilmL.A., Inc. ATTN: Paul Audley, President 1201 W. 5`h Street, Suite T-800 Los Angeles, CA 90017 Re: Film Permitting Services Contract Dear Mr. Audley: The insurance requirements have been met. Transmitted herewith is a fully executed contract, as referenced above, approved by City Council on November 15, 2011, through Resolution No. 2011-194. If you have any questions regarding this matter, please call Capt. Todd Schoenig at 323/583- 8811 ext. 567. Very ly yours, WI LARD G. A CHI City Clerk WGY:dj Enclosure c: Mark Whitworth Todd Schoenig Purchasing Department Risk Management Resolution No. 2011-194 Agreement File No. 11-125 E7ccfusivefy Industrial CONTRACT NO. BY AND BETWEEN, THE CITY OF VERNON, a municipal corporation (City), and FILML.A., Inc (Contractor) WHEREAS, there is a need for efficient film permit coordination services to provide a more favorable environment within the City to encourage filming and still ensure that filming activities outside of a studio are conducted in a manner that protects the public interest, including public safety, and balances the needs of the general public with the needs of the filmmaker; and WHEREAS, the City is authorized to contract with private agencies including non-profit corporations for the operation of City programs; and WHEREAS, the City Council has determined that public purposes will be served by entering into this Contract with the Contractor for the coordination of film permits; and WHEREAS, the Contractor is duly incorporated pursuant to the California Non - Profit Public Benefit Corporation Law and is authorized by law to provide services and collect fees contemplated by this Contract; and WHEREAS, the Contractor is qualified by reason of experience, preparation and organization to provide the services contained within this Contract. NOW, THEREFORE, in consideration of the mutual covenants, representations, and agreements herein set forth and mutual benefits to be derived therefrom, the parties agree as follows: Section 1. Term of the Contract The term of this Contract shall be annual from the date of execution unless terminated earlier in accordance with Section 7. Upon mutual approval of the City and Contractor 30 days prior to expiration, the term of this Contract may be extended additional periods of one (1) year under the same terms and conditions contained herein. Section 2. Activities to be Performed The Contractor shall perform all the services set forth in the Scope of Work, Exhibit A, to this Contract, a copy of which is attached hereto and incorporated herein by this reference. Section 3. Contract Administration The City Administrator, or designee, shall have full authority to act for the City in the administration of this Contract, consistent with the provisions contained herein. Film Permits are approved for release by the Vernon Fire Department which is the Permit Authority. Section 4. Reporting Requirements The Contractor shall provide information to the City as required in Exhibit B to this Contract, a copy of which is attached hereto and incorporated herein by this reference. The City Administrator, or designee, and Contractor shall mutually agree on the acceptable format and methodology for submission of this information. The City Administrator or designee shall also have the authority to make minor adjustments to reporting timeframes, provided that all required reports are still provided in a timely manner and reflecting the information originally intended. Section 5. Contract Notices Written notices pertaining to this Contract shall be directed to: President FilmL.A. Inc. 1201 W. 5'" Street, Suite T-800 Los Angeles, CA 90017 City Administrator City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Section 6. Incorporation of Exhibits, Precedence of Documents Hereby incorporated by reference into this Contract are Exhibits A through B, which are attached hereto. In the event of any inconsistency between the provisions of this Contract and the Exhibits, the inconsistency shall be resolved by giving precedence in the following order: • The Body of this Contract (Through and Inclusive of Section 18) • Exhibit A — Scope of Work • Exhibit B — Reporting Requirements Section 7. Termination Either party may terminate this contract by giving 30 days written notice to the other party. The termination will be effective 30 days after the receipt of the written notice. Contract provisions for indemnity, statements, audits, payments, and refunds survive termination. The City may immediately terminate this Contract for cause. Cause shall be defined as: • the lapse of insurance as required herein after a reasonable period for cure by the Contractor; -2- • violation of city or state ethics or lobbying laws; • the discovery of organized, sustained activity that the Contractor is unwilling to cease; • the initiation of bankruptcy proceedings or the loss of managerial control of the Contractor to another party, including regulatory entities; • gross negligence in the performance of the duties under this Contract; Should termination of this Contract by the City be done for cause, the Contractor shall: • Provide to the City and its agents, and grant a perpetual, royalty free license to use, all information collected, created and used under the performance of this Contract ("data") in a form facilitating the immediate use of the information within 24 hours (48 hours for information stored off - site). This will include, but not be limited to, statistical, informational, operational, financial, legal and relevant personnel information; • Provide a period of continued access to the City, free of charge, for the use of any and all software and computer systems which the Contractor own(s)(ed) and utilize(s)(ed) in providing services under this Contract not to exceed 30 days, during which time the City and Contractor may enter into a license agreement for ongoing use by the City of the Contractor's software system. The terms of such license agreement shall be reasonable as compared to similar software license agreements. • In the alternative, if both parties agree, the City may negotiate to acquire the source code for, and other rights to, the software owned by the Contractor. Section 8. Compensation to Contractor The Contractor shall develop and maintain fee structures which eliminate the costs to City or its taxpayers. Contractor will receive no compensation from the City for the activities performed in connection with this Contract. The Contractor may charge its Entertainment Industry Customers a fee for each and any service contractor provides under this Contract as provided in Section 16. Section 9. Environmental Impact The Contractor shall take all reasonable steps to minimize impact on the environment and cooperate with City efforts to protect the environment. City may prohibit productions outside of enclosed building that portray sexual exposure or excessive violence. Section 10. City Access to Contractor The Contractor shall provide priority handling of all phone calls, emails and all other communications from City staff to contractor management. -3- Section 11. Monitoring and Evaluation The Contractor shall ensure: that authorized representatives of the City have the right of access to activities, records and facilities operated by contractor under this Contract without prior or advance notice being given to the contractor. Activities include attendance at meetings of the contractor's Board of Directors (if such a Board exists), observation of on -going contractor outreach efforts, compliance with audits and provision of any/all on -site records (including electronic) within 24 hours of the request of the City. Exceptions shall include confidential employee matters and litigation. If records are stored off -site, they shall be kept in a manner that allows for the provision of the records within 48 hours. Approval of the City Contract Administrator must be obtained for a method of storage that will result in more than 48 hours to access records. the cooperation of its staff and contractor's board members, in their official capacities (if such a board exists). The City Contract Administrator or designee, at its discretion, may periodically conduct performance or financial reviews of contractor. These reviews may focus on any topic including, but not limited to, the extent to which the terms of the contract are being fulfilled, customer and public satisfaction with the duties contractor performs, the outreach efforts that have been implemented, the measurable goals achieved, the effectiveness of outreach management, and the impact of the outreach. Section 12. Non -Discrimination and Equal Treatment of Customers No person shall, on the grounds of race, sex, creed, color, religion, handicap, political affiliation or belief, national origin, sexual orientation, marital status, medical condition or age be excluded from participating in, be refused the benefits of, or otherwise be subjected to discrimination in any activities, programs or employment supported by this Contract. The Contractor shall provide equal treatment to all similarly situated customers seeking a permit to film motion pictures, television shows, music videos, still photos or other purposes; seeking notification services; seeking to make comments or complaints about filming matters; and any other customers seeking services provided by contractor to the City. Contractor will indemnify the City from the impact of not providing equal treatment. Permit and other requests will be judged solely upon the merits of the request. Section 13. Public Records Act The Contractor shall be familiar with the California Public Records Act and must supply all information to persons or members of the public requesting information as may be required under such act. If a dispute arises among the City, the contractor and a person requesting information, the City will notify the contractor so that contractor has the opportunity to seek a court order precluding the disclosure of such information. In the absence of the contractor obtaining such an order, the contractor must release the information. Contractor acknowledges that all information generated as a result of this contract is part of the public domain and subject to the California Public Records act. This includes permit data, location information, permittee data, revenue, costs, notification data and complaints. Contractor should take care to separate data that is proprietary so that public domain data can be accessed easily and in a timely manner. Section 14. Insurance (a) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Comprehensive General Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by Contractor or Contractor's officers, employees, or agents. (b) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Comprehensive Vehicle Liability insurance covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit, covering any vehicle utilized by Contractor or Contractor's officers, employees, or agents in performing the services required by this Agreement. (c) Contractor agrees to maintain in force at all times during the performance of work under this Agreement workers compensation insurance as required by law. (d) Contractor shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Excess Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, and provide policy coverage and terms at least as broad as those required in the primary insurance. -5- (e) Contractor shall require each of its sub -consultants or sub- contractors to maintain insurance coverage that meets all of the requirements of this Agreement. (0 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a B+; VII in the latest edition of Best 's Insurance Guide. (g) Contractor agrees that if it does not keep the aforesaid insurance in full force and effect City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may take out the necessary insurance and pay, at Contractor's expense, the premium thereon. (h) At all times during the term of this Agreement, Contractor shall maintain on file with the Risk Manager, a certificate or certificates of insurance, satisfactory to the City Attorney and Risk Manager, along with a copy of the policy declarations page for each policy showing that the aforesaid policies are in effect in the required amounts. Upon request by City, Contractor shall cause its insurers to issue certified copies of the insurance policies evidencing that the coverage and policy endorsements required under this Agreement are maintained in force. Contractor shall, prior to commencement of work under this Agreement, file with the Risk Manager, such certificate or certificates and a copy of the policy declarations page for each policy. The policies of insurance required by this Agreement shall contain an endorsement naming the City, its officers, officials, employees, agents, and volunteers as additional insured's. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days prior written notice to City, and specifically stating that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. (i) The insurance provided by Contractor shall be primary to any coverage available to City, and any insurance or self-insurance maintained by City, its officers, officials, employees, agents, or volunteers shall be excess of Contractor's insurance and shall not contribute with it. The policies of insurance required by this Agreement shall include provisions for waiver of subrogation. Contractor hereby waives all rights of subrogation against City, its officers, officials, employees, agents, and volunteers. Q) Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, Contractor shall either reduce or eliminate the deductibles or self -insured retentions with respect to City, or Contractor shall procure a bond guaranteeing payment of losses and expenses. Section 15. Policies and Procedures The Contractor shall develop and maintain clear, written non-proprietary policies and procedures of their operations and processes they use. It is further expected WE that these policies and procedures be shared and made available for review by the City Contract Administrator and Permit Authority. To the extent that the policies and procedures impact City operations, approval of the Contract Administrator must be obtained prior to implementation. Section 16. Contractor Fees The Contractor may charge its Entertainment Industry Customers a fee for each and any service contractor provides under this Contract. Changes to the fees must provide the Entertainment Industry Customers and the City Contract Administrator at least 30 days notice. The City has the right to review the fees that the contractor charges its Entertainment Industry Customers. The City may require that the fees be changed if, fee increases exceed the change in the Consumer Price Index for all goods and services for the Los Angeles Metropolitan area for the preceding period. The preceding period shall begin with either the effective date of this Contract or the effective date of the most recent change in fees, whichever is later. The preceding period shall end with the proposed effective date of the proposed fee increase. Section 17. Reserve for City Fees The Contractor shall, at all times, maintain a cash balance equal to at least twice the average monthly amount of City Fees paid by contractor to the City during the prior fiscal year (i.e., from July 1 through June 30), which will not be used to pay operating expenses. Maintain as part of its accounting system a separate account showing the amount of City Fees that the contractor estimates it may become obligated to pay as a result of on -location filming by its Entertainment Industry Customer. Section 18. Arbitration and Venue Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitration in Los Angeles, California. The arbitration shall be administered by JAMS pursuant to its Streamlined Arbitration Rules and Procedures. The arbitrator shall be a retired judge. All decisions of the arbitrator shall be in writing, and the arbitrator shall provide written reasons for their decision. The arbitration decision shall be final and binding on the Parties. Judgment on the award may be entered in any court having jurisdiction pursuant to this Agreement. This clause shall not preclude Parties from seeking provisional remedies in aid of arbitration from a court having jurisdiction pursuant to this Agreement. The exclusive jurisdiction and venue under this Agreement shall be the Superior Court of California, Los Angeles County. -7- Section 19. Attorneys Fee In the event a dispute, claim or litigation arises regarding this Agreement, the prevailing party shall be entitled to reimbursement for reasonable attorneys fees and actual costs, which may be set by the arbitrators or the court in the same action or in a separate action brought for that purpose, in addition to any other relief which is obtained. [Signatures Begin on Next Page] ME IN WITNESS WHEREOF, the parties have caused this Contract to be executed by their duly authorized representatives. City of Vernon, a California charter City and California municipal corporation By: M k Whitworth C y Administrator F :"o � ffmww 004 1 Wei 21M AS TO FORM: Willard G. Yamfgfichi, Chief Deputy City Attorney FilmL.A., Incorporated, a California corporation By: Name: aIAA AtAlte7 Title: Pre5i4eAt By: -7� ZL Name: Deni58 Cm(4tci%es Title: CW44 Fivuue;al v(<icer Wle EXHIBIT A EXHIBIT A SCOPE OF WORK A. The Contractor shall provide services to the City in the following categories as described below: 1. Film Permit Coordination Services The contractor will assist Entertainment Industry Customer with securing film permits within the City of Vernon. The contractor will operate with the following purposes: • Coordinate the film permit process in a centralized manner within the parameters established by the City; • Coordinate the film permit process in order to assure that filming will be conducted at such times and in such a manner as to cause a minimum of interference with neighborhood and commercial/industrial districts; • In coordination with the City, develop and implement community outreach programs for residential and commercial/industrial districts on a proactive basis; • In coordination with the City, improve conditions relating to motion picture, television and photography activities for the Vernon City area; and, • If requested by the City, attend meetings with stakeholders to mediate disputes, determine impacts of filming and other permit related activities on specific neighborhoods, participate in neighborhood council and other group meetings, answer questions of stakeholders, or discuss the economic impact of filming. The contractor shall perform the following tasks: • Coordinate processing of film permit applications from Entertainment Industry Customers; • Interface with City departments with respect to permit applications to obtain input in developing permit terms and conditions (including any general terms, conditions and restrictions applicable to all permits), coordination logistics relating to filming activities and perform other functions needed to assist in permit evaluation and processing; • Ensure that the description of activity on permit applications provided to the City is accurate and detailed, especially activity that is likely to generate public concern such as screams for help, screeching tire, etc.; • Provide guidance and advice on the permit process to Entertainment Industry Customers; • Coordinate with the City on the dissemination of filming related information on the internet; • Make recommendations that reflect the needs of the community, the City and the production company to City departments with respect to the handling and processing of individual permit applications and the development of permit terms and conditions; -10- • Provide pre -production walk-throughs to assess and mitigate impacts of proposed film activities when requested by Industry, the City or when the Contractor's experience and judgment dictate; • Upon Contractor's receipt of approval by the City Permit Authority, Contractor will release film permits issued by the City Permit Authority to Entertainment Industry Customers; • The Contractor will coordinate and release permit revisions and/or extensions subsequent to the release of an original permit. However, concurrence must be obtained from the Vernon Fire Department or designee officer and/or designated City personnel; • Respond to complaints (See Section 3); • Collect funds (including estimated City fees), process refunds (if warranted) and make monthly remittances of amounts due to the City; • Provide filming data, records, reports and background information (See Exhibit 13): • If requested, provide advice to the City regarding filming policy and the permit process; • If requested by Entertainment Industry Customers, the Permit Authority or by requirement of Special Filming Conditions, provide monitor services at specified locations permitted for filming. Approval of the City Permit Authority shall be obtained prior to implementation of any polices or procedures which identify a protocol of when, where, at what time and under what circumstances and conditions contractor monitors will be required for permitted activity; and • If requested, collect DOT signs posted on a temporary basis as a result of filming for specified locations. Specified locations include all locations which require a contractor monitor as well as any location in which contractor staff reasonably expects to be on location at the completion of permitted activity. • Permits shall be coordinated in a time frame which allows proper review and approval by City personnel, including but not limited to: the posting of lane, street and road closure requests; and the assignment of required City personnel. All permit requests made to the contractor and transmitted to City Departments for review must be made in advance of the requested activity and in accordance with the existing City departmental policy. The City will seek to minimize required turnaround times to the extent possible. • All requests provided to the Permit Authority for the review and approval must contain all reviews and recommendations already obtained from other City departments. The comments and recommendations from various departments may be sought simultaneously. However, when department reviews are sought from departments other than the Permit Authority, the contractor shall include the reviews and recommendations already obtained. • The release of approved permits to Entertainment Industry Customers shall be accomplished in a manner that allows the Customer to understand the limitations placed upon the requested activity and allows for sufficient community notification. -11- • In all instances where neighborhood filming guidelines or other City policies exist that require a community survey, the community survey must be conducted in advance of the beginning of the permitted activity, unless stated otherwise in a separate guideline or policy adopted by the City Council. The community survey may be conducted by the production company, the Contractor or a Subcontractor. • Maintain standard office hours a minimum of 8 a.m. to 6 p.m., Monday through Friday, with the exception of City holidays. • Collect estimated City fees from Entertainment Industry Customers in advance of releasing a film permit and pay the City within 60 calendar days of receiving a final invoice for City Fees. • Process requests for refunds from Entertainment Industry Customers within 30 calendar days of receiving final documentation that indicates a refund is due. • For specified locations, where monitors or other designated contractor staff are assigned contractors will collect and account for all signs City reports as being posted immediately following the conclusion of permitted activity. All signs collected will be returned to City following the conclusion of the permitted activity. Along with the signs, contractor will submit a brief report containing the number, type of, and location of signs collected and returned by contractor. 2. Notification Services The contractor will provide notification services. The contractor will operate with the following purpose: • Provide services to nearby residents and businesses and City entities, of upcoming filming. The contractor(s) shall perform the following tasks: • Provide notification services, including the creation and posting of notices (giving special attention to the language needs of the community); • Ensure that the description of activity on notifications is accurate and detailed, in particular, activity that is likely to generate public concern such as screams for help, screeching tires, etc.; • Maintain detailed, accurate records related to all services provided under this contract and made available fore review by the City, including, but not limited to: sample notice, a map of the area where the notice was distributed to, and any issues encountered in conducting the notice and the resolution of those issues; • Provide notification data, records and background information; • Provide advice to City officials and departments regarding the notification process; and, • Respond to inquires regarding the notification process from City officials. -12- 3. Complaint Referral Services The contractor will provide complaint referral services to assist with the timely resolution of community and entertainment industry complaints. The contractor shall perform the following tasks: • Receive complaints on a 24 hour/7 day a week basis and address them in a timely manner, including the appropriate referral of complaints to appropriate City personnel and contractors; • Provide complaint data, records and background information; • Provide advice to City officials and departments regarding filming policy and complaints received; • Receive and respond to complaints regarding filming from City officials and departments, including the appropriate referral of complaints to appropriate City personnel and contractors; • Review written stakeholder comments and complaints and, in consultation with the City, prepare written responses to the comments or complaints. • Refer complaints to appropriate City personnel and contractors within 15 minutes if the activity is currently in progress. If there is no after hours contact provided by a City department then the call shall be referred to the Permit Authority in a manner determined by the Permit Authority. • If a complaint is received and the activity is no longer in progress, respond to the complaint on an initial basis within one (1) calendar day and finalize/complete any responses, including written, if necessary, within seven (7) calendar days. • Provide response services to complaints on a 365 days -a -year, 24 hours - a -day, 7 days -a -week basis. 4. Maintenance of Records The Contractor is expected to provide appropriate record keeping and separation of assets and liabilities related to services provided under this Contract (separate from other business activities provided by the company). Record keeping details should also separately account for the three different types of services provided under this Contract. 5. City Fees The Contractor shall remit all City Fees monthly. • The Contractor shall not deduct from any remittance to the City any transaction fees or other costs incurred as a result of accepting payment from its entertainment industry customers in the form of credit card, debit, wire transfer, check, or other forms of payment. • The Contractor shall remit City Fees to the City with U.S. currency and may not reduce payments to the City by costs associated with the conversion of foreign currency to U.S. currency. • For film permits coordinated through Contractor, Contractor not the Entertainment Industry Customers, is obligated to pay to the City all City Fees other than those customarily collected by the City directly from the Entertainment Industry Customers. If the Contractor desires to adopt a -13- regular business practice allowing Entertainment Industry Customers to obtain permits on credit, it may do so. However, the Contractor would still be required to remit all City Fees within 60 calendar days of receiving a final invoice for City fees regardless of their ability to collect from individual Entertainment Industry Customers. The Contractor may collect deposits from its Entertainment Industry Customers so if violations occur deposits can be used to pay for fees/fines/financial penalties. The Contractor shall, after receiving from the City a final invoice for City Fees, pay to the City, in the United States currency, all City Fees invoiced with the next regularly scheduled payment. The Contractor shall act in good faith in disputing any City Fees billed (either timely or late) by the City, and contractor and the City will act in good faith to resolve any such dispute within a reasonable time. Once the dispute as to any City Fees is finally resolved, either by agreement between contractor and the City or by legal action or some other agreed - upon dispute resolution method, contractor will pay such City Fees at the same time as the next normal payment is due to the City. However, payment of disputed fees shall be separated out from the normal payment. If contractor fails to pay all or any portion of City Fees within the time payment of such fees is due as set forth in this section, the payment of the unpaid portion will be considered late. o If a payment remains unpaid for more than 30 calendar days after it is considered late, such unpaid amount of City Fees will be considered delinquent and subject to a penalty of 1 % of the delinquent amount. o If a payment is delinquent for more than 30 calendar days, delinquent amounts (including the 1% penalty) will also be subject to interest charges. Interest on such delinquent amounts will be calculated at a rate equal to the prime rate at the time such unpaid City Fees become delinquent plus five percent, and interest will accrue at that rate from the date the unpaid City Fees became late until payments made by contractor. 6. Emergency Response and Coordination The Contractor shall assist the City in responding to unusual occurrences and large scale emergencies when a state of emergency is declared by the City, including cancelling, revoking or not processing permit requests and communicating with the Entertainment Industry. The Contractor shall direct its staff to cooperate fully with the City and follow the direction of the Contract Administrator, the Mayor, the Emergency Operations Board and the Emergency Operations Organization for the duration of the local emergency. -14- The Contractor shall, as requested cooperate with City efforts to recover costs associated with the Emergency from the federal and state governments. The Contractor shall, as requested, coordinate the dissemination of emergency related information to the entertainment industry and assist the City in canceling, delaying, rescheduling and relocating filming and managing the related public relations. 7. Marketing Program Maintain a web site providing information about City facilities available for filming. Such site shall include photographs along with contact information for the City department that schedules filming activity at the facility. If for any reason Contractor is unable to continue providing a location library web site, it shall make available to the City of Vernon, free of charge, any photographs, documents, or systems owned by Contractor, which compromised the location library. If requested by the City, cooperate with City efforts to enhance and retain jobs (within the City) in all segments of the entertainment industry including multimedia and other new emerging technologies. However, Contractor shall not be required to expend its own financial resources to accomplish such programs. -15- EXHIBIT B EXHIBIT B REPORTING REQUIREMENTS Permit Coordination — Reporting Requirements 1. The Contractor shall submit to the City Administrator, within 30 calendar days after the end of each quarter, quarterly summaries of permit volume, amounts collected from Entertainment Industry Customers and amounts paid to the City in City Fees. These reports should indicate any significant changes when comparing the current quarter with previous quarters, or when appropriate, the same quarter from previous years. 2. The contractor shall submit to the City Administrator, on a monthly basis, in a format approved by the Contract Administrator, a list of all of its Entertainment Industry Customers, including: the Production Company's name any known contact personnel, as applicable; address; telephone number; contact person; type of production; production title; and requested filming location(s) and date(s). 3. The Contractor shall submit to the City Administrator an annual report addressing the impact of City policies, rules and regulations on filming in the City and recommendations to improve the environment for on -location filming in the City. 4. The Contractor shall submit to the City Administrator a written copy of all non-proprietary policies and procedures for all aspects of the process of obtaining a film permit (financial, procedural and otherwise) and submit subsequent changes to those policies and procedures within 15 days of the change. Proprietary policies and procedures shall be provided for inspection but will not be provided in a manner that creates a public record absent a court order. 5. The Contractor shall submit a reconciliation statement and aging report with each payment of City fees. The reconciliation report shall detail the fees being submitted and related permit information. The aging report shall show the amount of City fees for which FilmL.A. has not received a final invoice after completion of filming activity. Should the aging report show that a City department has not submitted final invoices for at least 60 days after completion of the filming activity, the City Administrator will notify the City department and request submission of final invoices to FiImL.A. within 30 days. Should the aging report show that a City department has not submitted final invoices for at least 90 days after completion of the filming activity, the City Administrator will forward the Aging report, along with detail provided by FilmL.A. to the Mayor and City Council. -16- Notification Services — Reporting Requirements 6. The Contractor shall submit to the City Administrator, within 30 calendar days after the end of each quarter, quarterly summaries of notification volume and amounts collected from Entertainment Industry Customers. Complaint Referral — Reporting Requirements 7. The Contractor shall maintain a record of all complaints lodged by the City, on behalf of the City or a City resident or business concerning on - location filming events in the City. A report on complaints will be provided on a quarterly basis as determined by the City Administrator and the Permit Authority as well as a compilation of data provided annually. Complaint data, records and background information provided must be clear and complete. -17- Juarez, Debbie From: Barcia, Ana Sent: Tuesday, November 29, 2011 10:49 AM To: Juarez, Debbie Cc: Schoenig, Todd Capt Subject: RE: Insurance Inquiry- FILML.A., Inc. -Approved 11/15/11 Hi Debbie, FILML.A. has provided acceptable insurance coverage. Ana Barcia City of Vernon T: 323) 583-8811 ex 286 F: 323) 826-1439 abarcia(a)ci.vemon.ca.us From: Juarez, Debbie Sent: Monday, November 28, 2011 8:46 AM To: Barcia, Ana Subject: RE: Insurance Inquiry - FILML.A., Inc. - Approved 11/15/11 HI Ana. Please let me know the status. Capt. Todd Schoenig ext 567 came by to see where we are at with sending this out. Thanks. ,De6orah Juarez W§corrfs Management f ssistant City of Vernon - City Clerks office 4305 Santa EFe f venue Vernon, CA 90058 (323) 583-8811 From: Barcia, Ana Sent: Tuesday, November 15, 2011 3:13 PM To: Juarez, Debbie Subject: RE: Insurance Inquiry - FILML.A., Inc. - Approved 11/15/11 Need to work on this. I'll advise once I receive the approval. Thanks, Ana Barcia City of Vernon T: 323) 583-8811 ex 286 F: 323) 826-1439 abarcia(&ci.vemon.ca.us From: Juarez, Debbie Sent: Tuesday, November 15, 2011 2:59 PM To: Barcia, Ana Subject: Insurance Inquiry - FILML.A., Inc. - Approved 11/15/11 Hi Ana. Please let me know if you have valid insurance on file for the above -referenced contractor. Thank you Worah Juarez RECEIVED NOV 0 7 2011 .CITY CLERK'S OFFICE 0ev STAFF REPORT FIRE DEPARTMENT DATE: November 2, 2011 TO: Honorable Mayor and City Council FROM: Todd Schoenig, Administrative Captain RE: Film L.A. Film Permitting Services RECEIVE NOV 0 3 2011 CITY ADMINISTRATION After consulting with numerous business owners, city employees and film production companies working in the city, it has been determined that there is a need to streamline the film permitting process within the City of Vernon . In the City of Vernon, a temporary use (filming) permit is required for all on -location filming on both public and private property. The Vernon Fire Department administration office currently coordinates all on -location production (features, television series, commercials, student films and still fashion shoots) in the City of Vernon. After a film permit request is received, the fire department filming coordinator must schedule a location walkthrough to be attended by representatives from the health, police and community services departments as well as the production manager for the film company and the building owner or representative. After approval from all involved department representatives the completed film permit must be walked through city hall and signed off by each department involved ( health, police, community services, risk management) and then back to the fire department for final approval. This process is laborious and time consuming for all involved and dramatically increases the cost to the city and turn around time for processing film permits. By contracting with Film L.A. for film permitting coordinating we can maintain our control of all aspects of the permit process while being able to utilize their state-of-the-art Online Permit System (OPS), fee collection service and city film site marketing services. Use of this system will decrease city employee man-hours associated with the current film permitting/walkthrough process. Film L.A. is a private, 501(c)4 not -for -profit organization established for the public benefit. Film L.A. is the contracted sole provider of film permit coordination for the County and City of Los Angeles, City of Industry, Southgate and numerous other cities and agencies. When filmmakers apply for permits, their team of production coordinators works hand -in -hand with client jurisdictions to obtain the required approvals from agencies or departments such as police and fire, health, risk management and community services. All permits are issued by the authority of and in accordance with the policies of each client jurisdiction. Fees collected are determined by each individual agency contracting with Film L.A. . To increase efficiency, decrease turn -around time and to better promote filming within the City of Vernon, the Fire Department recommends contracting with Film L.A. for film permitting services and coordination. Fiscal Impact: None CCC.w _ rvE` CITY ATTORNEY'S OFFICE INTER -DEPARTMENT MEMORANDUM DATE: October 26, 2011 TO: Todd Schoenig, Captain FROM: Mike Montgomery, Interim City Attorne RE: FilmL.A. Incorporated I have received and reviewed the contract and the attachments thereto for the above -referenced matter. The contract for filming is approved as to form. MM:em Enclosures