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06-0418_PYRO SPECTACULARS, INC_Display AgreementOPYRO SPECTACULARS, INS Display Agreement 1) THIS AGREEMENT, entered into this_ze ay ofI 20th[ by and between PYRO SPECTACULARS, INC., a California corporation hereinafter referred to as "PYRO" and 4 City of San Juan Capistrano hereinafter referred to as "PURCHASER. 2) PYRO agrees to furnish PURCHASER, in accordance with the terms and conditions hereinafter set forth, 1 fireworks display as per Program A , submitted, accepted and trade part hereof, including the services of a licensed pyrotechnic operator to take charge of and, along with sufficient helpers, safely discharge the display. The said display is scheduled to be performed on July 4 , 2006 at Agricultural Preserve - Strawberry Field; San Juan Capistrano, CA 3) PURCHASER, at its own expense, agrees to provide to PYRO: A) A suitable DISPLAY SITE in which to stage the fireworks display, including a firing and fallout zone reasonably acceptable to PYRO in which the fireworks and firework debris may be exhibited, rise and fall safely. B) Adequate policing, guard protection, roping, fencing and/or other crowd control measures to prevent the access of the public or its property or any other people or property not authorized by PYRO into the DISPLAY SITE. C) The services and cost of standby firemen and/or any applicable permit fees as required by state and local statutes, ordinances or regulations. D) Access by PYRO, at all times, to the DISPLAY SITE to set up the display. If PURCHASER fails to fully comply with requirements A, B, C and/or D set forth above, PYRO shall have no obligation to perform and PURCHASER agrees to pay to PYRO the entire contract price plus any additional expenses incurred because of said failure. If, in its sole discretion, PURCHASER designates an area for members of the public to view the Display ("Spectator Area") and/or an area for vehicular parking ("Parking Area"), the PURCHASER shall: E) Ensure that the Spectator Area does not infringe on the Display Area; F) Have sole responsibility for ensuring that the terrain of the Spectator Area and any structures thereon, including, but not limited to grandstands and bleachers are safe for use by spectators; G) have sole responsibility for ensuring that the Parking Area is safe for use; H) Have sole responsibility to police, monitor and appropriately control spectator access to the Spectator Area and the Parking Area and police, monitor and appropriately control the behavior of persons in these areas. It is expressly agreed that PYRO, (including its operators and helpers) shall not inspect, police, monitor or otherwise supervise any area of the site other than the Display Area, except to ensure: I) That any Spectator or Parking Areas are outside the Display Area; and n After completion of the Display, that the Display Area is cleared of any live firework debris originating from the program. 4) PURCHASER shall pay to PYRO the sum of TWENTY-SIX THOUSAND--------- - Dollars ($ 26,000.00 ). A deposit of $ 13.000-00 and fire department fees approximated at $ 720.00 must be paid by February 25, 2006. Full final payment is due the first regular business day after the date set for the display. A finance charge at a periodic rate of 1.5% per month, 18% annual percentage rate, or the maximum rate permitted by law, whichever is less, will be charged on the unpaid balance after ten days from the date of the display. PURCHASER, by signing this agreement, authorizes PYRO to receive and verify financial information concerning PURCHASER from any person or entity. 5) PURCHASER agrees to assume the risk of weather, or other causes beyond PYRO's control, which may prevent the display from being safely discharged on the scheduled date, which may cause the cancellation of any event for which PURCHASER has purchased the display, or which may affect or damage such portion of the exhibits as must be placed and exposed a necessary time before the display. It shall be within PYRO's sole discretion to determine whether or not the display may be safely discharged on the scheduled date and at the scheduled time. If, for any reason beyond PYRO's control, including, without limitation, inclement weather, PYRO is unable to safely discharge the display on the scheduled date or should any event for which PURCHASER has purchased the display be cancelled, the parties shall attempt to negotiate a new display date, which shall be within 60 days of the original display date. PURCHASER further agrees to pay PYRO for any additional expenses made necessary by this postponement. If they are unable to agree on a new display date, PYRO shall be entitled to liquidated damages from PURCHASER as if PURCHASER had cancelled the display on the date set for the display, as provided in the following paragraph. 6) PURCHASER shall have the option to unilaterally cancel this display prior to the date of the display. If PURCHASER exercises this option, PURCHASER agrees to pay to PYRO, as liquidated damages, the following percentages of the agreed contract price. 1) 25% if cancellation three (3) or more days prior to the scheduled day of the display, 2) 50% if cancellation occurs within two (2) days of the actual date set for the display, 3) 75% if cancellation occurs on the date set for the display but prior to the time physical set-up of the display actually begins, 4) 1000/a thereafter. If cancellation occurs prior to the date set for the display, PURCHASER agrees to pay PYRO in addition to the above percentages, the value associated with any specific custom work performed by PYRO or its agents including but not limited to music/narration tape production and/or sponsors logos. (continued on reverse) SD PYRO SPECTACULARS, Ir Display Agreement 7) In the event PURCHASER cancels the display, it will be impractical or extremely difficult to fix the actual amount of PYRO's damages. The foregoing represents a reasonable estimate of the damages PYRO will suffer if PURCHASER cancels the display. S) PYRO reserves the ownership rights and trade names that are used in or are a product of the pyrotechnic display to be performed herein. Any reproduction by sound, video or other duplication or recording process without the express written permission of PYRO is prohibited. 9) PYRO agrees to furnish insurance coverage in connection with the Display only, for the following risks and amounts: bodily injury and property damage, including products liability ONE MILLION DOLLARS ($1,000,000) combined single limits. Such insurance shall include PURCHASER as an additional insured regarding claims made against PURCHASER for bodily injury or property damage arising from the operations of PYRO in performing the Display provided for in this Agreement. Such insurance afforded by PYRO shall not include claims made against PURCHASER for bodily injury or property damage arising from A) Failure of PURCHASER, including through or by its employees, agents and/or independent contractors, to perform its obligations under this agreement, including, without limitation, those contained in Paragraph 3 of this Agreement; B) Failure of the PURCHASER to provide discretionary Spectator and Parking Areas referred to in Paragraph 3 of this Agreement. PURCHASER shall indemnify and hold PYRO harmless from all claims and suits made against PYRO for bodily injury or property damage arising from A) and B) of this Paragraph. 10) If any legal action is brought to enforce or interpret the terms or provisions of this Agreement, the prevailing party shall be entitled to reasonable attorney fees and costs in addition to any other relief to which they may be entitled. 11) In the event PYRO breaches this agreement, or is otherwise negligent in performing the fireworks display provided for herein, PURCHASER shall, under no circumstances, be entitled to recover monetary damages from PYRO beyond the amount PURCHASER agreed to pay PYRO under this Agreement. PURCHASER shall not, under any circumstances, be entitled to recover any consequential damages from PYRO including, without limitation, for loss of income, business or profits. Nothing in this paragraph shall be construed as a modification or limitation on the insurance coverages afforded to Paragraph 9 above. 12) It is agreed, nothing in this Agreement or in PYRO's performance of the display provided for herein, shall be construed as forming a partnership or joint venture between PURCHASER and PYRO. The panties hereto shall be severally responsible for their own separate debts and obligations and neither party shall be held responsible for any agreements or obligations not expressly provided for herein. 13) This Agreement shall be governed and interpreted under the laws of the State of California. It is further agreed that the courts of the State of California shall have exclusive jurisdiction to adjudicate any disputes arising out of this contract or performance of the display provided for herein. It is further agreed that the Central Judicial District of San Bernardino County, California, shall be proper venue for any such action. 14) Any Notice to the parties permitted or required under this Agreement may be given by mailing such Notice in the United States Mail, postage prepaid, first class, addressed as follows: PYRO - Pyro Spectaculars, Inc., P. O. Box 2329, Rialto, California 92377. PURCHASER -City of San Juan Capistrano: 25925 Camino del Avion, San Juan Capistrano, CA 92675 July 4, 2006- Prop "A" 15) All terms of this Agreement are in writing and may only be modified by written agreement of both parties hereto. Both parties acknowledge they have received a copy of said written Agreement and agree to be bound by said temms of written Agreement only. 16) If there is more than one PURCHASER, they shall be jointly and severally responsible to perform PURCHASER's obligations under this agreement. This Agreement shall become effective after it is executed and accepted by PURCHASER and after it is executed by PYRO at PYRO's offices in Rialto, California. This Agreement may be executed in several counter parts, including faxed copies, each one of which shall be deemed an original against the party executing same. This Agreement shall be binding upon the parties hereto and upon their heirs, successors, executors, administrators and assigns. PURCHASER recognizes that because of the nature of fireworks, an industry accepted level of 3% of the product used in any display may not function as designed and this level of nonperformance is acceptable as full performance. ,m parties�ereto, by and through their duly authorized agents, have set their hands and seals this. Tiflp PRESIDENT PRINT NAME X Initial Here Purchaser is responsible for payment of fire department permit and standby fees, if applicable. Purchaser to provide firing site, communication, and security. Price firm through February 25, 2006. Price includes full electronic firing. 0 City of San Juan Capitrano Performance Addendum For Pyro Spectaculars, Inc. July 4, 2006 • 1. In the event the Display substantially complies with the scope of the work but does not begin by 9:05 pm PDT on July 4, 2006, as a result of the sole negligence of Pyro. Pyro shall credit Purchaser $50.00 for each full minute of delay up to $2,000.00. 2. Additionally, in the event the Display substantially complies with the scope of work but is interrupted as a result of the sole negligence of Pyro, Pyro shall credit Purchaser $50.00 for each full minute of interruption up to $1,000.00. An interruption resulting from the malfunction of one or more fireworks devices, including interruptions resulting from injury or damage caused thereby, shall not be considered to result from the negligence of Pyro for the purposes of this paragraph. 3. In the event the Display substantially complies with the scope of work but fireworks in excess of the industry standard 3% fail to fire, Pyro shall credit Purchaser with the full list value of the product that failed to fire in excess of 3%. 4. In the event that the Display fails to substantially comply with the scope of work. Pyro shall credit Purchaser with up to 25% of the Display price. Such credit shall be inclusive of any credits set forth in paragraphs 1, 2, and 3. 5. Nothing in this paragraph shall prevent the parties from reaching agreement that all or a portion of the credits may be in the form of enhancements to future displays. 4/18/2006 AGENDA REPORT D1 O r�. TO: Dave Adams, City Manage FROM: Karen Crocker, Community Services Director SUBJECT: Consideration of Agreement Extension for the 2006 4th of July Celebration Fireworks Sky Concert (Pyro Spectaculars/San Diego Fireworks) RECOMMENDATION: By motion, approve agreement extension for the 2006 4th of July Celebration Fireworks Sky Concert to Pyro Spectaculars/San Diego Fireworks, for the amount of $26,000. SITUATION: A. Summary and Recommendation: At the meeting of June 15, 2004, City Council approved an agreement with Pyro Spectaculars/San Diego Fireworks to provide an electronically Fred aerial fireworks display for the City's annual 4th of July Celebration (Attachment 1). The term of the agreement was for one (1) year, with the option to extend the agreement for the 2005 and 2006 fireworks displays, based on the prior year's performance, upon mutual agreement of the parties. The agreement was extended in 2005 due to satisfactory performance in 2004, and staff is recommending that this agreement be extended for the 2006 event, due to the satisfactory performance in 2005. B. Background: Pyro Spectaculars/San Diego Fireworks has been providing the City of San Juan Capistrano with outstanding fireworks shows throughout the years. Staff has received numerous compliments from residents regarding the quality of the aerial show that this company has provided over the years. Pyro Spectaculars/San Diego Fireworks is a well-qualified fireworks company that has complied with performance standards as part of their Scope of Work. This contract extension will be for the 2006 event only. This event will be held on Tuesday, July 4, 2006, at the Sports Park. The proposed Display Agreement (Attachment 2) included a section regarding performance standards and how Pyro Spectaculars/San Diego Fireworks will address deficiencies, if they should occur (Attachment 3). This will be the final extension allowed by this agreement. The City will seek bids from fireworks companies for the 2007 event. Agenda Report • Page 2 0 April 18, 2006 The day's festivities will include food and information booths that are sponsored by community-based non-profit organizations, kiddie inflatable attractions, family games, live stage entertainment, and an aerial fireworks sky concert. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: This item does not require action by the Parks, Recreation, and Equestrian Commission. The Commission will be provided an update regarding this agreement at their April 2006 meeting. FINANCIAL CONSIDERATIONS: When the request for proposal was originally announced in 2004, the City allocated $25,000 for the fireworks display. In 2005, this was increased by $1,000, to $26,000, due to a product -cost increase. For the 2006 show, the City has remained at the $26,000 figure for a display that will be similar to last year, but with different music. The City will need to announce a request for proposals for the 2007 display. Whether an increase in the cost of the 2007 display will be appropriate will be determined prior to the announcement being sent to potential vendors. NOTIFICATION: Sam Bruggema, Pyro Spectaculars/San Diego Fireworks* Aaron Beargeon, Pyro Spectaculars/San Diego Fireworks* George Kibby, South Coast Farms* * Mailed copy of agenda report RECOMMENDATION: By motion, approve agreement extension for the 2006 4th of July Celebration Fireworks Sky Concert to Pyro Spectaculars/San Diego Fireworks, for the amount of $26,000. Respectfully submitted, submitted,0 "" \. Karen Crocker Community Services Director Prepared by: Lin a Evans Community Services Manager Attachments: 1. Scope of Work (2004) 2. Display Agreement & Performance Standards Addendum 3. Shell Description 4. Location Map 0 CITY OF SAN JUAN CAPISTRANO YEAR 2004 4TH OF JULY FIREWORKS DISPLAY SCOPE OF WORK Electronically Fired Show With Choreographed & Synchronized Music Not To Exceed $25,000 Proposals shall be evaluated based on the contractor's satisfactory and reliable performance history, compliance with Scope of Work, quality of proposed aerial display, the impact of pyrotechnic effects, and the length, pacing, and music proposed for the show. Contractor To: Submit a proposal for an aerial display that includes the following, using a minimum shell size: 3", and maximum shell size: 6" to provide a 20-25 minute show: • Opening Finale • Main Program • Closing Finale Please ensure that the proposal is divided into the three (3) categories and specify what would be included within each category • Provide a written description of the company's policy for monetary compensation to the City when, due to the company's actions (or inactions): - the aerial display does not begin on time, or there is a delay during the show - the show does not comply with the scope of work and/or the bid package that was submitted by contractor and approved by the City - there is a modification to the show, even though the show began on time and there were no delays during the show - even though the correct amount of shells are delivered, all the shells are not fired Provide licensed pyrotechnic operator and crew; transportation of crew and all supplies and materials to and from event. Operator and crew will be responsible for all site preparation and site cleaning, including removal of debris associated with the display. City will not accept responsibility for advance storage of fireworks and/or vehicle(s) Schedule operator and crew adequate time for set up; schedule adequate time for take-down/clean-up of the firing site and fall -out area immediately after the show and the following morning Coordinate with the Orange County Fire Authority and comply with all regulations Schedule representative(s) to meet on site with City staff and Fire Authority prior to event to coordinate event details ATTACHMENT Provide music that is choreographed and synchronized to the aerial fireworks show. Music is to be provided to City via both a DAT and a back-up CD Provide a 20-25 minute show; be responsible for the timely completion of all preparation work so the display will begin at its official starting time of 9:00 pm Provide the City with a certificate of insurance* for public liability and property damage, minimum sum of $1,000,000 AND provide the City with a liability endorsement form* naming the City of San Juan Capistrano, its elected and appointed officials, employees and servants as additional named insureds. Also to be included on certificate and endorsement: South Coast Farms, Orange County Fire Authority Provide the City with proof of Workers' Compensation Insurance* for all employees as required by State laws governing fireworks displays and proof of Automobile Insurance coverage* for all employees who will be driving automobiles associated with this event C Provide references for all July 4th displays conducted for the past three (3) years in Orange County, CA. This listing will be used to determine a satisfactory and reliable performance history City To: Term: Provide sand, DAT and CD Players, Clear -Com communication system, sound system, suitable firing site, and City liaison. The term of the agreement with the selected contractor shall include the year 2004 aerial fireworks display. This agreement may be extended upon mutual agreement of the parties without further action by City or Contractor for two (2) additional years, to include the years 2005 and 2006 4th of July aerial fireworks displays, if there has been no breach of contract and the City determines there was satisfactory performance at the previous year's Fourth of July Celebration. Notification to exercise the contract extension shall be provided by both parties within one hundred twenty (120) days following the 2004 and 2005 Fourth of July Celebrations. *Must be received by City minimum of 21 working days prior to the event OPYRO SPECTACULARS, INA Display Agreement 1) THIS AGREEMENT, entered into this day of 20QL by and between PYRO SPECTACULARS, INC., a California corporation hereinafter ref6rred to as "PYRO" and City of San Juan Capistrano hereinafter referred to as "PURCHASER. 2) PYRO agrees to furnish PURCHASER, in accordance with the terms and conditions hereinafter set forth, I fireworks display as per Program A , submitted, accepted and made part hereof, including the services of a licensed pyrotechnic operator to take charge of and, along with sufficient helpers, safely discharge the display. The said display is scheduled to be performed on July 4 2006 at Agricultural Preserve - Strawberry Fields San Juan Capistrano, CA 3) PURCHASER, at its own expense, agrees to provide to PYRO: A) A suitable DISPLAY SITE in which to stage the fireworks display, including a firing and fallout zone reasonably acceptable to PYRO in which the fireworks and firework debris may be exhibited, rise and fall safely. B) Adequate policing, guard protection, roping, fencing and/or other crowd control measures to prevent the access of the public or its property or any other people or property not authorized by PYRO into the DISPLAY SITE. C) The services and cost of standby firemen and/or any applicable permit fees as required by state and local statutes, ordinances or regulations. D) Access by PYRO, at all times, to the DISPLAY SITE to set up the display. if PURCHASER fails to fully comply with requirements A, B, C and/or D set forth above, PYRO shall have no obligation to perform and PURCHASER agrees to pay to PYRO the entire contract price plus any additional expenses incurred because of said failure. If, in its sole discretion, PURCHASER designates an area for members of the public to view the Display ("Spectator Area") and/or an area for vehicular parking ("Parking Area"), the PURCHASER shall: E) Ensure that the Spectator Area does not infringe on the Display Area; F) Have sole responsibility for ensuring that the terrain of the Spectator Area and any structures thereon, including, but not limited to grandstands and bleachers are safe for use by spectators; G) have sole responsibility for ensuring that the Parking Area is safe for use; H) Have sole responsibility to police, monitor and appropriately control spectator access to the Spectator Area and the Parking Area and police, monitor and appropriately control the behavior of persons in these areas. It is expressly agreed that PYRO, (including its operators and helpers) shall not inspect, police, monitor or otherwise supervise any area of the site other than the Display Area, except to ensure: 1) That any Spectator or Parking Areas are outside the Display Area; and I) After completion of the Display, that the Display Area is cleared of any live firework debris originating from the program. 4) PURCHASER shall pay to PYRO the sum of TWENTY-SIX THOUSAND------ Dollars ($ 26.000.00 ). A deposit of $ 13.000L00 and fire department fees approximated at $ 720.00 must be paid by February 25, 2006. Full final payment is due the first regular business day after the date set for the display. A finance charge at a periodic rate of 1.5% per month, 18% annual percentage rate, or the maximum rate pemvtted by law, whichever is less, will be charged on the unpaid balance after ten days from the date of the display. PURCHASER, by signing this agreement, authorizes PYRO to receive and verify financial information concerning PURCHASER from any person or entity. 5) PURCHASER agrees to assume the risk of weather, or other causes beyond PYRO's control, which may prevent the display from being safely discharged on the scheduled date, which may cause the cancellation of any event for which PURCHASER has purchased the display, or which may affect or damage such portion of the exhibits as must be placed and exposed a necessary time before the display. It shall be within PYRO's sole discretion to determine whether or not the display may be safely discharged on the scheduled date and at the scheduled time. If, for any reason beyond PYRO's control, including, without limitation, inclement weather, PYRO is unable to safely discharge the display on the scheduled date or should any event for which PURCHASER has purchased the display be cancelled, the parties shall attempt to negotiate a new display date, which shall be within 60 days of the original display date. PURCHASER further agrees to pay PYRO for any additional expenses made necessary by this postponement. If they are unable to agree on a new display date, PYRO shall be entitled to liquidated damages from PURCHASER as if PURCHASER had cancelled the display on the date set for the display, as provided in the following paragraph. 6) PURCHASER shall have the option to unilaterally cancel this display prior to the date of the display. If PURCHASER exercises this option, PURCHASER agrees to pay to PYRO, as liquidated damages, the following percentages of the agreed contract price. 1) 25% if cancellation three (3) or more days prior to the scheduled day of the display, 2) 50% if cancellation occurs within two (2) days of the actual date set for the display, 3) 75% if cancellation occurs on the date set for the display but prior to the time physical set-up of the display actually begins, 4) 100% thereafter. If cancellation occurs prior to the date set for the display, PURCHASER agrees to pay PYRO in addition to the above percentages, the value associated with any specific custom work performed by PYRO or its agents including but not limited to music/narration tape production and/or sponsors logos. (continued on reverse) ATTACHMENT PYRO SPECTACULARS, Il0. Display Agreement 7) In the event PURCHASER cancels the display, it will be impractical or extremely difficult to fix the actual amount of PYRO's damages. The foregoing represents a reasonable estimate of the damages PYRO will suffer if PURCHASER cancels the display. 8) PYRO reserves the ownership rights and trade names that are used in or are a product of the pyrotechnic display to be performed herein. Any reproduction by sound, video or other duplication or recording process without the express written permission of PYRO is prohibited. 9) PYRO agrees to famish insurance coverage in connection with the Display only, for the following risks and amounts: bodily injury and property damage, including products liability ONE MILLION DOLLARS ($1,000,000) combined single limits. Such insurance shall include PURCHASER as an additional insured regarding claims made against PURCHASER for bodily injury or property damage arising from the operations of PYRO in performing the Display provided for in this Agreement. Such insurance afforded by PYRO shall not include claims made against PURCHASER for bodily injury or property damage arising from A) Failure of PURCHASER, including through or by its employees, agents and/or independent contractors, to perform its obligations under this agreement, including, without limitation, those contained in Paragraph 3 of this Agreement; B) Failure of the PURCHASER to provide discretionary Spectator and Parking Areas referred to in Paragraph 3 of this Agreement. PURCHASER shall indemnify and hold PYRO harmless from all claims and suits made against PYRO for bodily injury or property damage arising from A) and B) of this Paragraph. 10) If any legal action is brought to enforce or interpret the terms or provisions of this Agreement, the prevailing party shall be entitled to reasonable attorney fees and costs in addition to any other relief to which they may be entitled. 11) In the event PYRO breaches this agreement, or is otherwise negligent in performing the fireworks display provided for herein, PURCHASER shall, under no circumstances, be entitled to recover monetary damages from PYRO beyond the amount PURCHASER agreed to pay PYRO under this Agreement. PURCHASER shall not, under any circumstances, be entitled to recover any consequential damages from PYRO including, without limitation, for loss of income, business or profits. Nothing in this paragraph shall be construed as a modification or limitation on the insurance coverages afforded to Paragraph 9 above. 12) It is agreed, nothing in this Agreement or in PYRO's performance of the display provided for herein, shall be construed as forming a partnership or joint venture between PURCHASER and PYRO. The parties hereto shall be severally responsible for their own separate debts and obligations and neither party shall be held responsible for any agreements or obligations not expressly provided for herein. 13) This Agreement shall be governed and interpreted under the laws of the State of California. It is further agreed that the courts of the State of California shall have exclusive jurisdiction to adjudicate any disputes arising out of this contract or performance of the display provided for herein. It is further agreed that the Central Judicial District of San Bernardino County, California, shall be proper venue for any such action. 14) Any Notice to the parties permitted or required under this Agreement may be given by mailing such Notice in the United States Mail, postage prepaid, fust class, addressed as follows: PYRO - Pyro Spectaculars, Inc., P. O. Box 2329, Rialto, California 92377. PURCHASER -City of San Juan Capistrano: 25925 Camino del Avion. San Juan Capistrano. CA 92675 -July 4.2006- Prov'°A^ 15) All terms of this Agreement are in writing and may only be modified by written agreement of both parties hereto. Both parties acknowledge they have received a copy of said written Agreement and agree to be bound by said terms of written Agreement only. 16) If there is more than one PURCHASER, they shall be jointly and severally responsible to perform PURCHASER's obligations under this agreement. This Agreement shall become effective after it is executed and accepted by PURCHASER and after it is executed by PYRO at PYRO's offices in Rialto, California. This Agreement may be executed in several counter parts, including faxed copies, each one of which shall be deemed an original against the party executing same. This Agreement shall be binding upon the parties hereto and upon their heirs, successors, executors, administrators and assigns. PURCHASER recognizes that because of the nature of fireworks, an industry accepted level of 3% of the product used in any display may not function as designed and this level of nonperformance is acceptable as full performance. Witness Whereof the parties hereto, by and through their duly authorized agents, have set their hands and seals this. PURCHASER David M. Swerdlin, Mayor Sohn PRINT NAME U City of San Juan Capitrano Performance Addendum For Pyro Spectaculars, Inc. July 4, 2006 1. In the event the Display substantially complies with the scope of the work but does not begin by 9:05 pm PDT on July 4, 2006, as a result of the sole negligence of Pyro. Pyro shall credit Purchaser $50.00 for each full minute of delay up to $2,000.00. 2. Additionally, in the event the Display substantially complies with the scope of work but is interrupted as a result of the sole negligence of Pyro, Pyro shall credit Purchaser $50.00 for each full minute of interruption up to $1,000.00. An interruption resulting from the malfunction of one or more fireworks devices, including interruptions resulting from injury or damage caused thereby, shall not be considered to result from the negligence of Pyro for the purposes of this paragraph. 3. In the event the Display substantially complies with the scope of work but fireworks in excess of the industry standard 3% fail to fire, Pyro shall credit Purchaser with the full list value of the product that failed to fire in excess of 3%. 4. In the event that the Display fails to substantially comply with the scope of work. Pyro shall credit Purchaser with up to 25% of the Display price. Such credit shall be inclusive of any credits set forth in paragraphs 1, 2, and 3. 5. Nothing in this paragraph shall prevent the parties from reaching agreement that all or a portion of the credits may be in the form of enhancements to future displays. 0 J e s E7 WOE J,PncP,Dav Z Product Synopsis Pyro technic Proposal City of San Juan Capistrano Program A X ZooaO.00 Main Body - Aerial Shells Description ♦ 3" Sky Concert Selections ♦ 4" Sky Concert Selections ♦ 5" Sky Concert Selections ♦ 6" Sky Concert Selections Total of Main Body - Aerial Shells Pyrotechnic Devices Description ♦ Sousa Diamond Line - Multishot Device Total of Pyrotechnic Devices Grand Finale Description ♦ 2.5" Sky Concert Finale Shells ♦ 3" Sky Concert Finale Shells ♦ 4" Sky Concert Finale Shells ♦ 5" Sky Concert Finale Shells ♦ 6" Sky Concert Finale Shells Quantity 135 145 115 105 631117 Quantity 1,290 Shots 1,290 Quantity 216 75 30 9 6 Total of Grand Finale 336 Grand Total 2,126 ATTACHMENT 3 Attachment 4 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 EAx www.sanjuancapistrano. org 0 0 MEMBERS OF THE CITY COUNCIL NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL SAM ALLEVATO DIANE BATHGATE WYATT HART JOE SOTO DAVID M. SWERDLIN The City Council of San Juan Capistrano will meet at 7:00 p.m. on April 18, 2006 in the City Council Chamber in City Hall, to consider: "Consideration of Agreement Extension for the 2006 4th of July Celebration Fireworks Sky Concert (Pyro Spectaculars/San Diego Fireworks)" — Item No. D10. If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at the City Clerk's office by 5:00 p.m. on Monday, April 17, 2006 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a yellow "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Linda Evans, Community Services Manager. You may contact that staff member at (949) 443-6390 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanivancal3istrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: council - agendas a0sanivancaoistrano.orp. Meg Monahan, CMC City Clerk cc: * Sam Bruggema - Pyro Spectaculars/San Diego Fireworks * Aaron Beargeon - Pyro Spectaculars/San Diego Fireworks * George Kirby - South Coast Farms; Linda Evans, Community Services Manager * Received staff report San Juan Capistrano: Preserving the Past to Enhance the Future 0 Printed on recycled paper AYTON INSURANCE 2500 CENTER POINT ROAD, SUITE 301 POST OFFICE BOX 94067 BIRMINGHAM, ALABAMA 35215 BIRMINGHAM, ALABAMA 35220 TELEPHONE: (205) 854-5806 FAX: (205) 854-5899 CERTIFICATE OF INSURANCE NO. 620291 we certify that insurance as outlined below is afforded the Named Insured under policy CA000002771-20 issued by Admiral Insurance Company. NAMED INSURED Pyro Spectaculars, Inc. Pyro Events, Inc. Astro Pyrotechnics, Inc. P.O. Box 2329 Rialto, California 92377 PERIOD COVERAGE LIMITS OF LIABILITY PPA Spectaculars North American Fireworks Co., Inc. (NAFCO) San Diego Fireworks Pyro Spectaculars Canada, Inc. January 13, 2006 to January 12, 2007; Both days inclusive. Commercial General Liability. Covering against the legal liability of the Named Insured for Bodily Injury and Property Damage caused by, or arising from, the preparation for, the firing of, or the clearance following fireworks display(s) stated below. A) Each Occurrence B) General Aggregate C) Products & Completed Operations Aggregate $1,000,000 $2,000,000 $2,000,000 The addition of more than one insured does not serve to increase the limits of liability. Aggregate limits shown may have been reduced by paid claims. It is certified that, in accordance with, and subject to, the terms of the above policy, the following SPONSORS AND PROPERTY OWNERS AND LICENSING AUTHORITIES are included as Additional Insured(s), but only in respect of the legal liability of such Additional Insured(s) for Bodily Injury and Property Damage caused by the operations of the Named Insured in connection with the firing of the fireworks display(s) stated below. The insurance afforded any Additional Insured does not include coverage for any injury or damage arising from the failure of such Additional Insured to fulfill its obligations specified in its contract with the Named Insured. NAME & ADDRESS OF INSURED SPONSORS PROPERTY OWNERS, LICENSORS City of San Juan Capistrano 25925 Camino del Avion San Juan Capistrano, CA 92675 ADDITIONAL INSURED(S): City of San Juan Capistrano, and County of Orange, and Orange County Fire Authority, and South Coast Farms, and its elected and appointed officials, employees and servants when acting in their official capacity as such. DISPLAY LOCATION DISPLAY DATE(S) San Juan Capistrano Sports Park July 4, 2006 Agricultural Preserve Strawberry Field San Juan Capistrano, CA This insurance applies automatically if the described display is fired on any alternative date because of cancellation on the date shown due to weather or other cause; however, IN NO EVENT WILL COVERAGE APPLY TO BODILY INJURY OR PROPERTY DAMAGE SUSTAINED AFTER January 12, 2007. This certificate is not an insurance policy and does not in any way amend, extend or alter the coverage afforded by the policy listed above. For particulars concerning the terms, exclusions and conditions of such policy each Additional Insured is referred to the policy documents in the possession of the Named Insured. Should the above described policy be cancelled before the expiration date thereof, the issuing company will mail 30 days' prior written notice to the above named Additional Insured. DRAYTON INSURANCE BROKERS, INC. April 20, 2006 DATE OF ISSUE A.47STKINGER, PRESIDE CALIFORNIA LICENSE . OA18664 L Policy Number: CA000002771-20 ENDORSEMENT NO. 13 • All 08 76 02 03 Effective Date. 01/13/2006 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART CO';!rl, IERCIAL PROPERTY COVERAGE PART PROFESSIONAL LIABILITY COVERAGE PART It is agreed the following are included as additional insureds hereunder: Sponsors, landowners, bargeowners andfor licensing authorities with respect to operations of the named insured in connection with the preparation for, the firing of, or cleanup following fireworks displays performed by the named insured or the named insured's employees, and to whom certificate(s) of insurance are issued which specify date(s) and location(s) of such displays. The coverage afforded such Additional Insureds does nut apply to injury or damage arising from the failure of any such Additional lnsuted it folfi1l its obligations specified in its contract with the framed Insured. • POLICYHOLDERY STATE P.O. BOX 420807, SAN FRANCISCO,CA 94142-0807 COMPENSATION INS UPI AMC E FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE ISSUE DATE: 10-14-2005 GROUP: POLICY NUMBER: 0803749-2005 CERTIFICATE ID: 297 CERTIFICATE EXPIRES: 10-14-2006 10-14-2005/10-14-2006 CITY OF SAN JUAN CAPISTRANO 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 SD This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated. This policy is not subject to cancellation by the Fund except upon 70 days advance written notice to the employer. We will also give you 70 days advance notice should this policy be cancelled prior to its normal expiration. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policy listed herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate of insurance may be issued or to which it may pertain, the insurance afforded by the policy described herein is subject to all the terms, exclusions, and conditions, of such policy. AUTHORIZED REPRESENTATIVE PRESIDENT EMPLOYER'S LIABILITY LIMIT INCLUDING DEFENSE COSTS: $1,000,000 PER OCCURRENCE. EMPLOYER PYRO SPECTACULARS, INC. PO BOX 2329 RIALTO CA 92377 M0410 InEv.2-051 PRINTED : 09-17-2005 37 1, UG %'AC?RRN CERTIFICAT F LIABILITY INSURAN u/ %s PRODUCER (909) 793-2373 FAX (909)795-6983 Davis III Graeber Insurance Services, Inc. 470 E. Highland Ave. P.O. Box -40 Redlands, CA 923y3 INBUReD hyro-Spectaculars,—Ync. P.O. Box 2329 Rialto, CA 92376 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR &TER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAICB __ WEURERA National -Continental Insurance Cm"any WEUncR0: --- INSURER C: POLICYCXPINAYION nATPNMIIO _ MEURER 0: - _�- HNSURER —MMA— THE .MM THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR TETE IrOWCY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR AMY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIOMS OF SUCH POLICIES A@OHCGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS ^- ,- - "--�`... TYPE OF INWRANCE POLICY NUMBER Y FFCCYVE POLICYCXPINAYION nATPNMIIO LIMITS GENERAL LIABILITY EACH OCCURRENCE _ 6 COMML RML GENEITAL LIABILITY ice. DAMAGETORENTEU El wOEXP(MY Perwn) •S -_1CLAIMSMADE PERSONAL A AOV INJURY f„» S GENERAL AGGRCCATL'_ S_ M.- CEH'LAECREGATPLIMITAPPLIESPER: PNOOUCTS• COMPIOP AGG S —4- _P01.ICY JrTI.1COT - IOC AUYQMOBELIABILITY X' R ANYAUrO CPS901385-S 11�13�2GDS 11/13/2OD6 COMRWFACINGLELIMIT tEAY"MA S _SA000�00 A X X ALL OWHI'D AUTOS 6CHEOIILC0AU1OS IIRrn Au TOS NON OWNED AUTOS BODILY INJURY (PDrwnwll S ,WDUYINJUnY IPaA�daBml �..� _ PROPERTY DAMAGE. •`^• IP.r ".W.AB GARAOK LlA01tm AUTO ONLY-EAACCIDCNT -OTHER I ANY AUTO THAN• AUTO ONLY: AGO E^� CICEBSHUMORELLA LIABILITY EACH OCCURRENCE S OCCUR C1 CI AIMS MADE AGGRCGATE DCUUCTIM F. T{EIENTMN F _.. WORKERS COMPENSATION AND I.MPIOYaRS'UABMTY ANYPROnNIDTOn,PAnINERIEXECLRNE OF FIOERNACMNER EXCLUD1,07 II YYF, twmpItl UMM SPELIAL PNOVISIONS IVIVN WC STA ILL nl- IN --"-- ELUtCH ACCIDENT S EL. DISEASE -CA EMPLOYEE S E.L. DISFASE•POLICY LIMIT _ $ WHEN, DEBCIOPTTON OFPERATMN41 LOCATIONS I VEHICLES I EXCLUSIGNS AD060 BY ENMM86MEWT I SPECIAL PROUSIONS Re: Operations of the Named Insured 'A 10 Day Notice of Cancellation Applies for Non-payment of Premium Cjty of San Juan Capistrano Attn: Linda Evans 25925 Camino Del Avion San Juan Capistrano, CA 92675 ACORD 26 (2001104) SHOULD ANY OF THE ABOVk W:SCRWEO POUGRa M GnNGNLLED Duron TnI EXPIRATMN DAVE THEREOF, TNS ISSUING MEURER WILL ENDEAVOR TO MAIL J_OL DAYS WIUTTXI NOTME TO THE CERTIFICATE HOLDER NAMED TO VNE LEFT, BUT FAILURE TO MAR SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OACORD CORPORATION 1984 0 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAX www.sanjuancapistrano.org April 20, 2006 James R. Souza Pyro Spectaculars, Inc. P.O. BOX 2329 Rialto, CA 92377 Dear Mr. Souza: IA[Al1AAlif1 EST A I11INED 1961 1776 MEMBERS OF THE CITY COUNCIL SAM ALLEVATO DIANE BATHGATE WYATT HART JOE SOTO DAVID M. SWERDLIN A Display Agreement related to the firework display for July 4t', 2006 is in the process of being executed. It will be issued upon receipt of required documentation related to contract terms under Section 9. Insurance. General Liability certificate for $1,000,000 and an endorsement form naming the City of San Juan Capistrano as additional insured. Insurance evidence may be faxed to (949) 493-1053 — ATTENTION CITY CLERK -- followed by original signed documents. If you have questions specific to the contact, please contact Linda Evans, Community Services Manager (949)443-6390. Please call me at (949) 443-6309 if you have questions regarding the forms of insurance needed. cc: Linda Evans, Community Services Manager San Juan Capistrano: Preserving the Past to Enhance the Future 0 Printed on 100%Reryded Paper Ll 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAx www.sanjuancapistrano.org May 1; 2006 James R. Souza Pyro Spectaculars, Inc.. P.O. Box 2329 Rialto, CA 92377 Dear Mr. Souza: MEMBERS OF THE CITY COUNCIL SAM ALLEVATO DIANE BATHGATE WYATT HART JOE SOTO DAVID M. SWERDLIN A fully executed, original Display Agreement related to the firework display for July 4th 2006 is enclosed for your records. Thank you for forwarding documentation confirming current compliance with the terms of insurance under your agreement with the city. Please keep in mind that should this documentation lapse, all work under this agreement must stop and all payments will be withheld until we receive proper evidence of insurance. You may proceed with work under this agreement in coordination with the project manager, Linda Evans, Community Services Manager (949) 443-6390. ra cc: Linda Evans, Community Services Manager San Juan Capistrano: Preserving the Past to Enhance the Future L! P,mted .n 100% R..vd.A Paeer