22-0630_VICTOR'S CHRISTMAS TREE_ Maintenance Services Agreement61147.02100\12888815.4
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CITY OF SAN JUAN CAPISTRANO
MAINTENANCE SERVICES AGREEMENT
1.PARTIES AND DATE.
This Agreement is made and entered into this 30th day of June, 2022 by and
between the City of San Juan Capistrano, a public agency organized under the laws of the State
of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano,
CA 92675 (“City”) and VGNS Enterprises, Inc. dba Victor’s Christmas Trees, a
(“Contractor”) with its principal place of business at 32959 Calle Perfecto, Suite C, San Juan
Capistrano, CA 92675 (“Contractor”). City and Contractor are sometimes individually referred
to as “Party” and collectively as “Parties” in this Agreement.
2.RECITALS.
2.1 Contractor.
Contractor desires to perform and assume responsibility for the provision of certain
maintenance services required by the City on the terms and conditions set forth in this
Agreement. Contractor represents that it is experienced in providing Christmas tree lights,
ornament installation and maintenance services to public clients, that it and its employees or
subcontractors have all necessary licenses and permits to perform the Services in the State of
California, and that is familiar with the plans of City. Contractor shall not subcontract any
portion of the work required by this Agreement, except as expressly stated herein, without prior
written approval of City. Subcontracts, if any, shall contain a provision making them subject to
all provisions stipulated in this Agreement.
2.2 Project.
City desires to engage Contractor to render such services for the installation of
professional Christmas tree lights and ornaments to the City’s Christmas Tree located at Historic
Town Center Park, and maintenance services for lighting, ornaments or any other decoration
associated to the City’s Tree provided by Contractor (“Project”) as set forth in this Agreement.
3.TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Contractor promises and agrees to furnish to
the City all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the installation of professional Christmas tree lights and
ornaments to the City’s Christmas Tree located at Historic Town Center Park, and maintenance
services necessary for the Project (“Services”). The Services are more particularly described in
Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject
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to, and performed in accordance with, this Agreement, the exhibits attached hereto and
incorporated herein by reference, and all applicable local, state and federal laws, rules and
regulations.
3.1.2 Term. The term of this Agreement shall be from June 30, 2022 to
June 30, 2023, unless earlier terminated as provided herein. Contractor shall complete the
Services within the term of this Agreement, and shall meet any other established schedules and
deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if
necessary to complete the Services.
3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Contractor or under its supervision. Contractor will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Contractor on an independent contractor basis and not as an employee.
Contractor retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Contractor shall also not be employees of City and shall at all times be under
Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other
amounts due such personnel in connection with their performance of Services under this
Agreement and as required by law. Contractor shall be responsible for all reports and obligations
respecting such additional personnel, including, but not limited to: social security taxes, income
tax withholding, unemployment insurance, disability insurance, and workers’ compensation
insurance.
3.2.2 Schedule of Services. Contractor shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit “B” attached hereto and incorporated herein by reference.
Contractor represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Contractor’s conformance
with the Schedule, City shall respond to Contractor’s submittals in a timely manner. Upon
request of City, Contractor shall provide a more detailed schedule of anticipated performance to
meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Contractor shall be subject to the approval of City.
3.2.4 City’s Representative. The City hereby designates the Community
Services Manager, or his or her designee, to act as its representative for the performance of this
Agreement (“City’s Representative”). City’s Representative shall have the power to act on
behalf of the City for all purposes under this Agreement. Contractor shall not accept direction or
orders from any person other than the City’s Representative or his or her designee.
3.2.5 Contractor’s Representative. Contractor hereby designates Victor Serrao,
President, or his or her designee, to act as its representative for the performance of this
Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full
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authority to represent and act on behalf of the Contractor for all purposes under this Agreement.
The Contractor’s Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.6 Coordination of Services. Contractor agrees to work closely with City
staff in the performance of Services and shall be available to City’s staff, consultants and other
staff at all reasonable times.
3.2.7 Standard of Care; Performance of Employees. Contractor shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Contractor represents and maintains that it is skilled in the professional
calling necessary to perform the Services. Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Contractor represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, including any required business license, and that such licenses and approvals shall be
maintained throughout the term of this Agreement. As provided for in the indemnification
provisions of this Agreement, Contractor shall perform, at its own cost and expense and without
reimbursement from the City, any services necessary to correct errors or omissions which are
caused by the Contractor’s failure to comply with the standard of care provided for herein. Any
employee of the Contractor or its sub-contractors who is determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat
to the safety of persons or property, or any employee who fails or refuses to perform the Services
in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor
and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.8 Period of Performance and Liquidated Damages. Contractor shall perform
and complete all Services under this Agreement within the term set forth in Section 3.1.1 above
(“General Scope of Services”). Contractor shall perform the Services in strict accordance with
any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto,
or which may be provided separately in writing to the Contractor. Contractor agrees that if the
Services are not completed within the aforementioned Performance Time and/or pursuant to any
such completion schedule or Project milestones developed pursuant to provisions of this
Agreement, it is understood, acknowledged and agreed that the City will suffer damage.
Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and
liquidated damages, and not as a penalty, the sum of Five Hundred Dollars ($500.00) per day
for each and every calendar day of delay beyond the Performance Time or beyond any
completion schedule or Project milestones established pursuant to this Agreement.
3.2.9 Disputes. Should any dispute arise respecting the true value of any work
done, of any work omitted, or of any extra work which Contractor may be required to do, or
respecting the size of any payment to Contractor during the performance of this Agreement,
Contractor shall continue to perform the Work while said dispute is decided by the City. If
Contractor disputes the City’s decision, Contractor shall have such remedies as may be provided
by law.
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3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall
keep itself fully informed of and in compliance with all local, state and federal laws, rules and
regulations in any manner affecting the performance of the Project or the Services, including all
Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable
for all violations of such laws and regulations in connection with Services. If the Contractor
performs any work knowing it to be contrary to such laws, rules and regulations and without
giving written notice to the City, Contractor shall be solely responsible for all costs arising
therefrom. City is a public entity of the State of California subject to certain provisions of the
Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It
is stipulated and agreed that all provisions of the law applicable to the public contracts of a
municipality are a part of this Agreement to the same extent as though set forth herein and will
be complied with. These include but are not limited to the payment of prevailing wages, the
stipulation that eight (8) hours' labor shall constitute a legal day's work and that no worker shall
be permitted to work in excess of eight (8) hours during any one calendar day except as
permitted by law. Contractor shall defend, indemnify and hold City, its officials, officers,
employees and agents free and harmless, pursuant to the indemnification provisions of this
Agreement, from any claim or liability arising out of any failure or alleged failure to comply
with such laws, rules or regulations.
3.2.10.1 Employment Eligibility; Contractor. By executing this
Agreement, Contractor verifies that it fully complies with all requirements and restrictions of
state and federal law respecting the employment of undocumented aliens, including, but not
limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to
time. Such requirements and restrictions include, but are not limited to, examination and
retention of documentation confirming the identity and immigration status of each employee of
the Contractor. Contractor also verifies that it has not committed a violation of any such law
within the five (5) years immediately preceding the date of execution of this Agreement, and
shall not violate any such law at any time during the term of the Agreement. Contractor shall
avoid any violation of any such law during the term of this Agreement by participating in an
electronic verification of work authorization program operated by the United States Department
of Homeland Security, by participating in an equivalent federal work authorization program
operated by the United States Department of Homeland Security to verify information of newly
hired employees, or by some other legally acceptable method. Contractor shall maintain records
of each such verification, and shall make them available to the City or its representatives for
inspection and copy at any time during normal business hours. The City shall not be responsible
for any costs or expenses related to Contractor’s compliance with the requirements provided for
in Section 3.2.10 or any of its sub-sections.
3.2.10.2 Employment Eligibility; Subcontractors, Sub-
subcontractors and Consultants. To the same extent and under the same conditions as
Contractor, Contractor shall require all of its subcontractors, sub-subcontractors and consultants
performing any work relating to the Project or this Agreement to make the same verifications
and comply with all requirements and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Employment Eligibility; Failure to Comply. Each person
executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer
of Contractor, and understands that any of the following shall be grounds for the City to
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terminate the Agreement for cause: (1) failure of Contractor or its subcontractors, sub-
subcontractors or consultants to meet any of the requirements provided for in Sections 3.2.10.1
or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with such
requirements (including in those verifications provided to the Contractor under Section 3.2.10.2);
or (3) failure to immediately remove from the Project any person found not to be in compliance
with such requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Contractor
certifies that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers’ Compensation or to undertake
self-insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
3.2.10.5 Equal Opportunity Employment. Contractor represents that
it is an equal opportunity employer and it shall not discriminate against any subcontractor,
employee or applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities
related to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination.
3.2.10.6 Air Quality. Contractor must fully comply with
all applicable laws, rules and regulations in furnishing or using equipment and/or providing
Services, including, but not limited to, emissions limits and permitting requirements imposed by
the California Air Resources Board (CARB). Contractor shall specifically be aware of the
CARB limits and requirements’ application to "portable equipment", which definition is
considered by CARB to include any item of equipment with a fuel-powered engine. Contractor
shall indemnify City against any fines or penalties imposed by CARB or any other governmental
or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its
subcontractors, or others for whom Contractor is responsible under its indemnity obligations
provided for in this Agreement.
3.2.10.7 Water Quality.
(A)Management and Compliance. To the extent applicable,
Contractor’s Services must account for, and fully comply with, all local, state and federal laws,
rules and regulations that may impact water quality compliance, including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws,
rules and regulations of the Environmental Protection Agency and the State Water Resources
Control Board; the City’s ordinances regulating discharges of storm water; and any and all
regulations, policies, or permits issued pursuant to any such authority regulating the discharge of
pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground
or surface water in the state.
(B)Liability for Non-Compliance. Failure to comply with the
laws, regulations and policies described in this Section is a violation of law that may subject
Contractor or City to penalties, fines, or additional regulatory requirements. Contractor shall
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defend, indemnify and hold the City, its officials, officers, employees, volunteers and agents free
and harmless, pursuant to the indemnification provisions of this Agreement, from and against
any and all fines, penalties, claims or other regulatory requirements imposed as a result of
Contractor’s non-compliance with the laws, regulations and policies described in this Section,
unless such non-compliance is the result of the sole established negligence, willful misconduct or
active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(C) Training. In addition to any other standard of care
requirements set forth in this Agreement, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to them
without impacting water quality in violation of the laws, regulations and policies described in
this Section. Contractor further warrants that it, its employees and subcontractors will receive
adequate training, as determined by City, regarding the requirements of the laws, regulations and
policies described in this Section as they may relate to the Services provided under this
Agreement. Upon request, City will provide Contractor with a list of training programs that
meet the requirements of this paragraph.
3.2.11 Insurance.
3.2.11.1 Time for Compliance. Contractor shall not commence
Work under this Agreement until it has provided evidence satisfactory to the City that it has
secured all insurance required under this Section. In addition, Contractor shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the City that the subcontractor has secured all insurance required under this Section.
3.2.11.2 Minimum Requirements. Contractor shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Contractor, its agents, representatives, employees or subcontractors.
Contractor shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A)Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto);
and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as
required by the State of California and Employer’s Liability Insurance. The policy shall not
contain any exclusion contrary to the Agreement, including but not limited to endorsements or
provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24
26 or 21 29); or (2) cross liability for claims or suits by one insured against another.
(B)Minimum Limits of Insurance. Contractor shall maintain
limits no less than: (1) General Liability: $1,000,000.00 per occurrence for bodily injury,
personal injury and property damage. If Commercial General Liability Insurance or other form
with general aggregate limit is used including, but not limited to, form CG 2503, either the
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general aggregate limit shall apply separately to this Agreement/location or the general aggregate
limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000.00
combined single limit for bodily injury and property damage; and (3) Workers’ Compensation
and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the
State of California. Employer’s Liability limits of $1,000,000.00 per accident for bodily injury
or disease. Defense costs shall be paid in addition to the limits.
(C)Notices; Cancellation or Reduction of Coverage. At least
fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance
coverage has been renewed or extended shall be filed with the City. If such coverage is
cancelled or materially reduced, Contractor shall, within ten (10) days after receipt of written
notice of such cancellation or reduction of coverage, file with the City evidence of insurance
showing that the required insurance has been reinstated or has been provided through another
insurance company or companies. In the event any policy of insurance required under this
Agreement does not comply with these specifications or is canceled and not replaced, the City
has the right but not the duty to obtain the insurance it deems necessa ry and any premium paid
by the City will be promptly reimbursed by Contractor or the City may withhold amounts
sufficient to pay premium from Contractor payments. In the alternative, the City may suspend or
terminate this Agreement.
(D)Additional Insured. The City of San Juan Capistrano, its
officials, officers, employees, agents, and volunteers shall be named as additional insureds on
Contractor’s and its subcontractors’ policies of commercial general liability and automobile
liability insurance using the endorsements and forms specified herein or exact equivalents.
3.2.11.3 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Contractor shall provide endorsements on forms supplied or
approved by the City to add the following provisions to the insurance policies:
(A)General Liability. The general liability policy shall include
or be endorsed (amended) to state that: (1) using ISO CG forms 20 10 and 20 37, or
endorsements providing the exact same coverage, the City of San Juan Capistrano, its officials,
officers, employees, agents, and volunteers shall be covered as additional insured with respect to
the Services or ongoing and complete operations performed by or on behalf of the Contractor,
including materials, parts or equipment furnished in connection with such work; and (2) using
ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage
shall be primary insurance as respects the City, its officials, officers, employees, agents, and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor’s
scheduled underlying coverage. Any excess insurance shall contain a provision that such
coverage shall also apply on a primary and noncontributory basis for the benefit of the City,
before the City’s own primary insurance or self-insurance shall be called upon to protect it as a
named insured. Any insurance or self-insurance maintained by the City, its officials, officers,
employees, agents, and volunteers shall be excess of the Contractor’s insurance and shall not be
called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in
Section 3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits
of coverage shall be available to the parties required to be named as additional insureds pursuant
to this Section 3.2.11.3(A).
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(B)Automobile Liability. The automobile liability policy shall
include or be endorsed (amended) to state that: (1) the City, its officials, officers, employees,
agents, and volunteers shall be covered as additional insureds with respect to the ownership,
operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed
by the Contractor or for which the Contractor is responsible; and (2) the insurance coverage shall
be primary insurance as respects the City, its officials, officers, employees, agents, and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor’s
scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its
officials, officers, employees, agents, and volunteers shall be excess of the Contractor’s
insurance and shall not be called upon to contribute with it in any way. Notwithstanding the
minimum limits set forth in Section 3.2.11.2(B), any available insurance proceeds in excess of
the specified minimum limits of coverage shall be available to the parties required to be named
as additional insureds pursuant to this Section 3.2.11.3(B).
(C)Workers’ Compensation and Employer’s Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its officials,
officers, employees, agents, and volunteers for losses paid under the terms of the insurance
policy which arise from work performed by the Contractor.
(D)All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written
notice by certified mail, return receipt requested, has been given to the City; and (B) any failure
to comply with reporting or other provisions of the policies, including breaches of warranties,
shall not affect coverage provided to the City, its officials, officers, employees, agents, and
volunteers. Any failure to comply with reporting or other provisions of the policies including
breaches of warranties shall not affect coverage provided to the City, its officials, officers,
employees, agents and volunteers, or any other additional insureds.
3.2.11.4 Separation of Insureds; No Special Limitations; Waiver of
Subrogation. All insurance required by this Section shall contain standard separation of insureds
provisions. In addition, such insurance shall not contain any special limitations on the scope of
protection afforded to the City, its officials, officers, employees, agents, and volunteers. All
policies shall waive any right of subrogation of the insurer against the City, its officials, officers,
employees, agents, and volunteers, or any other additional insureds, or shall specifically allow
Contractor or others providing insurance evidence in compliance with these specifications to
waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery
against City, its officials, officers, employees, agents, and volunteers, or any other additional
insureds, and shall require similar written express waivers and insurance clauses from each of its
subcontractors.
3.2.11.5 Deductibles and Self-Insurance Retentions. Any
deductibles or self-insured retentions must be declared to and approved by the City. Contractor
shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate
such deductibles or self-insured retentions as respects the City, its officials, officers, employees,
agents, and volunteers; or (2) the Contractor shall procure a bond guaranteeing payment of losses
and related investigation costs, claims and administrative and defense expenses.
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3.2.11.6 Subcontractor Insurance Requirements. Contractor shall
not allow any subcontractors to commence work on any subcontract relating to the work under
the Agreement until they have provided evidence satisfactory to the City that they have secured
all insurance required under this Section. If requested by Contractor, the City may approve
different scopes or minimum limits of insurance for particular subcontractors. The Contractor
and the City shall be named as additional insureds on all subcontractors’ policies of Commercial
General Liability using ISO form 20 38, or coverage at least as broad.
3.2.11.7 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in
California, and satisfactory to the City.
3.2.11.8 Verification of Coverage. Contractor shall furnish City
with original certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the City. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer to bind coverage on its
behalf, and shall be on forms provided by the City if requested. All certificates and
endorsements must be received and approved by the City before work commences. The City
reserves the right to require complete, certified copies of all required insurance policies, at any
time.
3.2.11.9 Reporting of Claims. Contractor shall report to the City, in
addition to Contractor’s insurer, any and all insurance claims submitted by Contractor in
connection with the Services under this Agreement.
3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Contractor shall at
all times be in compliance with all applicable local, state and federal laws, rules and regulations,
and shall exercise all necessary precautions for the safety of employees appropriate to the nature
of the work and the conditions under which the work is to be performed. Safety precautions as
applicable shall include, but shall not be limited to: (A) adequate life protection and life saving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.2.13 Bonds.
3.2.13.1 Performance Bond. Not required for this contract
3.3 Fees and Payments.
3.3.1 Compensation. Contractor shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit ”C” attached hereto and incorporated herein by reference. The total compensation
shall not exceed Ten Thousand Dollars, ($10,000.00), without written approval of City’s
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Community Services Manager. Extra Work may be authorized, as described below, and if
authorized, will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Contractor shall submit to City two invoices:
(1)$6,500 for cost agreed upon per this agreement for installation of professional Christmas
lights and ornaments; and, (2) $3,500.00 for final cost owned to Contractor as agreed upon her
this agreement upon removal of professional Christmas Lights and Decorations. . City shall,
within 45 days of receiving such statement, review the statement and pay all approved charges
thereon.
3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may
request that Contractor perform Extra Work. As used herein, “Extra Work” means any work
which is determined by City to be necessary for the proper completion of the Project, but which
the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Contractor shall not perform, nor be compensated for, Extra Work without written authorization
from City’s Representative.
3.3.5 California Labor Code Requirements
a.Contractor is aware of the requirements of California Labor Code
Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and
the performance of other requirements on certain “public works” and “maintenance” projects
(“Prevailing Wage Laws”). If the Services are being performed as part of an applicable “public
works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total
compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage
Laws. Contractor shall defend, indemnify and hold the City, its officials, officers, employees
and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of
any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory
upon the Contractor and all subcontractors to comply with all California Labor Code provisions,
which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and
1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor
Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and
debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to
submit certified payroll records directly to the Labor Commissioner under Labor Code section
1771.4 shall not apply to work performed on a public works project that is exempt pursuant to
the small project exemption specified in Labor Code Section 1771.4.
b.If the Services are being performed as part of an applicable “public
works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the
Contractor and all subcontractors performing such Services must be registered with the
Department of Industrial Relations. Contractor shall maintain registration for the duration of the
Project and require the same of any subcontractors, as applicable. Notwithstanding the
foregoing, the contractor registration requirements mandated by Labor Cod e Sections 1725.5 and
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1771.1 shall not apply to work performed on a public works project that is exempt pursuant to
the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
c.This Agreement may also be subject to compliance monitoring and
enforcement by the Department of Industrial Relations. It shall be Contractor’s sole
responsibility to comply with all applicable registration and labor compliance requirements. Any
stop orders issued by the Department of Industrial Relations against Contractor or any
subcontractor that affect Contractor’s performance of Services, including any delay, shall be
Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall
be considered Contractor caused delay and shall not be compensable by the City. Contractor
shall defend, indemnify and hold the City, its officials, officers, employees and agents free and
harmless from any claim or liability arising out of stop orders issued by the Department of
Industrial Relations against Contractor or any subcontractor.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. City may, by written notice to Contractor,
terminate the whole or any part of this Agreement at any time and without cause by giving
written notice to Contractor of such termination, and specifying the effective date thereof, at least
seven (7) days before the effective date of such termination. Upon termination, Contractor shall
be compensated only for those Services which have been adequately rendered to City, and
Contractor shall be entitled to no further compensation. Contractor may not terminate this
Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
City may require Contractor to provide all finished or unfinished Documents and Data and other
information of any kind prepared by Contractor in connection with the performance of Services
under this Agreement. Contractor shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 Additional Services. In the event this Agreement is terminated in whole
or in part as provided herein, City may procure, upon such terms and in such manner as it may
determine appropriate, services similar to those terminated.
3.5 General Provisions.
3.5.1 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
Contractor:
VGNS Enterprises, Inc. dba Victor’s Christmas Trees
32959 Calle Perfecto, Suite C
San Juan Capistrano, CA 92675
Attn: Victor Serrao, President
61147.02100\12888815.4
Updated March 2019 12
City:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Heidi Ivanoff, Community Services Manager
Such notice shall be deemed made when personally delivered or when mailed,
forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to
the party at its applicable address. Actual notice shall be deemed adequate notice on the date
actual notice occurred, regardless of the method of service.
3.5.2 Indemnification.
3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the City, its officials, officers, employees,
volunteers and agents free and harmless from any and all claims, demands, causes of action,
costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or
persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any
alleged acts, errors or omissions of Contractor, its officials, officers, employees, subcontractors,
consultants or agents in connection with the performance of the Contractor’s Services, the
Project or this Agreement, including without limitation the payment of all consequential
damages, expert witness fees and attorneys’ fees and other related costs and expenses.
3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with
Counsel of City's choosing and at Contractor’s own cost, expense and risk, any and all claims,
suits, actions or other proceedings of every kind covered by Section 3.5.2.1 that may be brought
or instituted against City or its officials, officers, employees, volunteers and agents. Contractor
shall pay and satisfy any judgment, award or decree that may be rendered against City or its
officials, officers, employees, volunteers and agents as part of any such claim, suit, action or
other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by
City or its officials, officers, employees, agents or volunteers as part of any such claim, suit,
action or other proceeding. Such reimbursement shall include payment for City’s attorneys’ fees
and costs, including expert witness fees. Contractor shall reimburse City and its officials,
officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred
by each of them in connection therewith or in enforcing the indemnity herein provided.
Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement,
and shall not be restricted to insurance proceeds, if any, received by the City, its officials
officers, employees, agents, or volunteers.
3.5.3 Governing Law; Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Orange County,
California. In addition to any and all contract requirements pertaining to notices of and requests
for compensation or payment for extra work, disputed work, claims and/or changed conditions,
Contractor must comply with the claim procedures set forth in Government Code sections 900 et
seq. prior to filing any lawsuit against the City. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims,
61147.02100\12888815.4
Updated March 2019 13
and/or changed conditions have been followed by Contractor. If no such Government Code
claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as
specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against
the City.
3.5.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.5 City’s Right to Employ Other Contractors. City reserves right to employ
other contractors in connection with this Project.
3.5.6 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the Parties.
3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.8 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Contractor include all personnel, e mployees, agents, and
subcontractors of Contractor, except as otherwise specified in this Agreement. All references to
City include its officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content or intent of this Agreement.
3.5.9 Amendment; Modification. No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel or otherwise.
3.5.11 No Third Party Beneficiaries. Except to the extent expressly provided for
in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
3.5.12 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
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Updated March 2019 14
3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. Contractor further
agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic
Interest with the City’s Filing Officer as required under state law in the performance of the
Services. For breach or violation of this warranty, City shall have the right to rescind this
Agreement without liability. For the term of this Agreement, no official, officer or employee of
City, during the term of his or her service with City, shall have any direct interest in this
Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.5.14 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.15 Attorneys’ Fees and Costs. If any action in law or equity, including an
action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement,
the prevailing Party shall be entitled to recover from the losing party attorney’s fees and costs in
an amount determined to be reasonable by a court of competent jurisdiction.
3.5.16 City to Enter Agreement. Contractor has all requisite power and authority
to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants
that the individuals who have signed this Agreement have the legal power, right, and authority to
make this Agreement and bind each respective Party.
3.5.17 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.5.18 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
3.5.19 Federal Provisions. N/A
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June
61147.02100\12888815.4 16
EXHIBIT “A”
SCOPE OF SERVICES
General:
Install, maintain and remove various Christmas tree lights and ornaments/decorations
on the existing 45’ +/- tall Cedrus deodara tree at San Juan Capistrano’s Historic Town
Center (HTC) park located 31867 El Camino Real.
Description of Services:
1.All lights, ornaments, and bows (aka decorations) shall be supplied by the
Contractor.
2.Decorations shall consist of a combination of a minimum of 3,000 lights,
ornaments and bows.
a.Lights shall be LED, including tree topper star and shall function on a
dawn/dusk photo sensor.
b.All lights, ornaments of various sizes and bows shall be multi-color. City
and Contractor must first agree to a decoration theme, prior to installation.
c.Tree topper shall be star shaped, transparent or white opaque and be lit.
Tree topper shall be larger in size and stand out from the other tree
ornaments.
d.Ornaments shall be as light-weight as possible and should be made of
plastic or other non-breakable material.
e.Decorations shall be in good condition upon installation and inspected for
damage, discoloration, and overall condition prior to installation.
3.Contractor shall install and remove all decorations and coordinate same with
Community Services staff.
a.Include all necessary equipment, personnel, safety devices, person lifts,
materials and labor.
b.Prior to installation of any decorations, a six-foot chain link safety fence
shall be installed and continuously maintained by the Contractor, around
an outer perimeter of the tree and work zone. Fence shall be removed by
contractor one or two days prior to City event . City event will always be
scheduled on the first Saturday in December. Fencing shall be removed
from the HTC Park by contractor and not stored for any duration of time on
premises.
61147.02100\12888815.4 17
c.Include daily clean-up of all work/access areas and tree while installing
and removing decorations, at Contractor’s sole cost.
d.Include repair of any damage to the tree , sod, or surrounding facilities, as
caused during installation or removal of decorations, at Contractor’s sole
cost.
4.Contractor shall not be responsible for damages to the tree , sod or surrounding
area which may be caused by acts of nature (e.g. high winds, lightning, fires due
to lightning, etc.).
5.Contractor shall repair or replace any damaged decorations as a result of
defective products, wear and tear or inclement weather, during the term of this
contract, and within 24 hours’ notice from City. Should damages occur as a result
of vandalism or theft, the City will notify the Contractor and request a quote for
replacements items.
6.Contractor shall install all decorations and maintain same in an ongoing and
professional workmanship manner.
7.Contractor shall test, install, and remove all decorations, and clean -up or repair
damages by date(s) certain, as noted in Exhibit B.
8.Contractor shall supply and use plywood or other surface when driving heavy
equipment onto the park grounds as a preventive measure to any cause or
damage to sod or park grounds. If called upon, City agrees to assist with defining
an appropriate surface access through HTC Park. In all cases, the Contractor
shall exercise extreme care against damage to existing sod or other nearby
facilities/appurtenances. The Contractor shall be responsible for all re pair(s) and
all costs associated with damages (e.g. ruts, sod, etc.) caused by the Contractor.
9.City agrees to supply 110v electrical source power from a nearby electrical panel.
Contractor shall provide all necessary extension cords and connection devices in
a safe, secure and UL listed manner. The Contractor shall make sure all
electrical cords and connection devices remain safe and properly connected,
during the entire term of the contract.
10. Contractor shall comply with City building and municipal code requirements its
sole expense.
11.Contractor shall perform functions as described in the scope of services between
the hours of 7:00am- 6:00pm Monday – Friday, and 8:30am 4:30pm Saturday.
Work is not authorized on Sunday.
61147.02100\12888815.4 18
EXHIBIT “B”
SCHEDULE OF SERVICES
Decoration and Fence Installation:
Decorations shall be installed two weeks prior to the first Saturday of December.
Contractor shall install a six-foot chain link fence around the permitter of the tree and
work area prior to installation of decorations; and contractor shall remove fencing one or
two days prior to the City event which is the first Saturday in December. Fencing shall
not be stored on-site and shall be removed from premises.
Decoration Removal:
By the end of the first week of January.
NOTE:
Dates may be varied pending weather-related conditions at Historic Town Center Park.
Actual start dates shall first be approved by the Community Service Manager.
VGNS Enterprises, Inc.
Victor’s Christmas Trees
32959 Calle Perfecto Suite C
San Juan Capistrano, Ca 92675
(949) 248-8733 Office
(949) 496-3638 Fax
www.victorschristmastrees.net
vcct@pacbell.net
AGREEMENT
Between Victor’s Christmas Trees
hereinafter called-VICTOR’S
And City of San Juan Capistrano
hereinafter called-CSJC
VICTOR’S agrees to:
Decorate existing live tree designated as City Christmas tree. Christmas tree to be
decorated with approximately 3,000 lights, ornaments and bows (lights, ornaments and
bows to be multicolor). Christmas lights to be LED lights owned by City of San Juan
Capistrano.
VICTOR’S agrees to decorate Christmas tree and to supply own 40’ man lift for
decorating and takedown.
VICTOR’S shall not be responsible for Christmas tree due to acts of nature such as high
winds, lightning, fires due to lightning, etc.
VICTOR’S agrees to maintain said decorations during term of contract excluding
vandalism.
VICTOR’S agrees to produce said tree in a workmanlike manner.
Limits of liability insurance will be two million ($2,000,000). Property damages will be
taken out by VICTOR’S at no expense to the CSJC and CSJC shall be named as insured.
CSJC agrees to supply appropriate ground access and sufficient electrical power.
CSJC agrees to provide all necessary encroachment permits and electrical permits.
VICTOR’S agrees to have tree fully decorated and functioning by deadline.
CSJC agrees that VICTOR’S if necessary, may work on decorating and take down of
Christmas tree decor during AM and PM hours to meet completion/removal deadlines.
If CSJC cancels contract after signing, 1/3 of contract price will be due (30) days after
cancellation of contract.
19
EXHIBIT C - COMPENSATION
Charlie View
Assistant City Manager
6/6/2022