REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
July 9, 2024
FROM
DAN MUNSEY, Fire Chief/Fire Warden, San Bernardino County Fire Protection District
SUBJECT
Title
Amendment to Revenue Agreement with Live Nation Worldwide, Inc. for Fire and Life Safety Protection Services
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the San Bernardino County Fire Protection District, approve Amendment No. 1, retroactively effective July 1, 2024 and including a non-standard term, to Revenue Agreement No. 21-644 with Live Nation Worldwide, Inc., for the continued onsite fire and life safety protection services provided by San Bernardino County Fire Protection District for Live Nation events held at the Glen Helen Amphitheater in Devore, updating personnel and equipment rates as specified in Exhibit B of the agreement, as well as to update the notice provision, to add assignment, dispute resolution, and Campaign Contribution Disclosure provisions, and to extend the term by three years, for a total contract period of August 24, 2021, through June 30, 2027.
(Presenter: Dan Munsey, Fire Chief/Fire Warden, 387-5779)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of Amendment No. 1 (Amendment) to Revenue Agreement No. 21-644 (Agreement) will not result in the use of Discretionary General Funding (Net County Cost). The actual amount of revenue received from Live Nation Worldwide, Inc. (Live Nation) during the term of the Amendment will depend on the number and size of events held at the Glen Helen Amphitheater (Amphitheater). The revenue from this Amendment will provide cost recovery for the San Bernardino County Fire Protection District (SBCFPD) and will be sufficient to offset the cost of providing onsite fire and life safety protection services for events at the Amphitheater.
The new service rates, reflected in Exhibit B of the recommended Amendment are based on Board of Directors (Board) approved 2024-25 rates in SBCFPD’s fee ordinance. Sufficient appropriation and revenue for this Agreement are included in SBCFPD’s 2024-25 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
On August 24, 2021 (Item No. 58), the Board approved the Agreement with Live Nation for SBCFPD to provide onsite fire and life safety protection services for the various Live Nation managed events held at the Amphitheater in Devore, through June 30, 2024. Live Nation recognizes that various fire and life hazards can occur in the operation of their activities. As a result, Live Nation desires to amend the Agreement that will allow SBCFPD to continue to provide services.
Approval of the Amendment will extend the term for an additional three-year period, effective retroactively July 1, 2024, for a total contract period of August 24, 2021, through June 30, 2027. The Amendment will also update the personnel and equipment rates, which is needed for the full recovery of both direct and indirect costs associated with providing the services under this Agreement. In addition, it updates the notice provision and adds assignment, dispute resolution, and Campaign Contribution Disclosure provisions.
While the parties negotiated certain contract terms to SBCFPD standards, Live Nation would not agree to update the Agreement to include SBCFPD’s standard indemnity provision, and, as a result, the Amendment includes the following:
Live Nation agrees to indemnify, defend (with counsel reasonably approved by SBCFPD) and hold harmless SBCFPD and its authorized officers, employees, agents and volunteers from any and all claims, actions, losses, damages, and/or liability arising out of the acts, errors or omissions of Applicant for any costs or expenses incurred by SBCFPD on account of any claim except where such indemnification is prohibited by law.
• SBCFPD’s standard indemnity provision also provides that the indemnification provision shall apply regardless of the existence or degree of fault of indemnitees and that the Contractor’s indemnification obligation applies to SBCFPD’s “active” as well as “passive” negligence but does not apply to SBCFPD’s “sole negligence” or “willful misconduct” within the meaning of Civil Code Section 2782.
• Potential Impact: By agreeing to an indemnity provision that does not include the two additional sentences in SBCFPD’s standard indemnity provision, the parties could dispute when the indemnity provision applies which could result in SBCFPD not receiving the indemnity or defense.
SBCFPD recommends proceeding forward with the Amendment without the standard indemnity provision to continue to provide these services to Live Nation for the various Live Nation managed events held at the Amphitheater in Devore to protect lives and property. This Amendment is retroactive to July 1, 2024, due to a delay in contract negotiations and subsequent time required for fiscal, legal, and risk reviews. No services described in the Agreement were provided by SBCFPD to Live Nation during the period of July 1st to the present date. The Agreement may be terminated by either party without cause upon 30 days prior written notice to the other party. All other terms of the Agreement shall remain in full force and effect.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Scott Runyan, Principal Assistant County Counsel, 387-5455) on July 3, 2024; Risk Management (Gregory Ustaszewski, Staff Analyst II, 386-9008) on July 5, 2024; Finance (Ivan Ramirez, Administrative Analyst, 387-4020) on June 17, 2024; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on June 17, 2024.