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15-0303_GARDEN STATE FIREWORKS, INC_Personal Services AgreementPERSONAL SERVICES AGREEMENT THIS AGREEMENT is made, entered into, and shall become effective this 3 day of March, 2015, by and between the City of San Juan Caplstrano (hereinafter referred to as the "City") and Garden State Fireworks, Inc. (hereinafter referred to as the "Contractor"). RECITALS: WHEREAS, City desires to retain the services of Contractor to design, produce and perform a public, aerial fireworks display on the 4^*^ of July Celebration pursuant to the terms and conditions set forth; and WHEREAS, Contractor Is qualified by virtue of Its training, education and expertise to accomplish such services; NOW, THEREFORE, City and Contractor in consideration of the terms, conditions, and covenants contained herein do mutually agree as follows: Section 1. Scope of Work. The Scope of Work to be performed by Contractor accepts such engagement upon all of the promises, terms and conditions in those tasks as set forth in Exhibit "A," attached and incorporated herein by reference. To the extent that there are any conflicts between the provisions described in Exhibit "A" and those provisions contained within this Agreement, the provisions in this Agreement shall control. Each party warrants that all of Its services shall be performed in a competent, professional and satisfactory manner and in accordance with the prevalent standards of its profession. Section 2. Term. This Agreement shall commence on the effective date and shall terminate, and continue in full force and effect until completion of all aerial fireworks display services and work, as set forth in Exhibit "A." Section 3. Payment Schedule. Expenses and Credit. 3.1 Payment Schedule. City agrees to pay Contractor the services fee hereunder, which shall not exceed $30,000, as set forth in Exhibit "A," for the aerial fireworks display. City shall pay to Contractor $15,000 of the aerial fireworks display fee as a deposit upon execution of this Agreement by both parties. Except as otherwise provided below, the balance of the aerial fireworks display fee shall be paid by the City no later than July 17, 2015. 1 3.2 Expenses. Contractor shall pay all normal expenses directly related to the aerial fireworks display including, but not limited to, freight, insurance as set forth herein, pyrotechnic products, pyrotechnic equipment, experienced pyrotechnic personnel to set up and discharge the pyrotechnics, and those additional items outlined as the Contractor's responsibility under this Agreement 3.3 Credit. Any credit due to the City as a result of operator error, or malfunction or failure of pyrotechnic equipment or materials, and therefore agrees to the following credited damages provisions: • If Contractor, as a result of operator error, or malfunction or failure of the pyrotechnic equipment or materials, is unable to start the aerial fireworks display within five to fifteen minutes after the Schedule Time, or if at any time after the aerial fireworks display has begun and is undenvay, there is/are a gap(s) or break(s) in the program lasting two to five minutes in total. Contractor shall pay to the City as liquidated damages 20% of the aerial fireworks display fee, or $4,900. • I n the event the aerial fireworks display substantially complies with the Scope of Work as set forth in the Exhibit "A" but does not begin by 9:05 p.m., PDT on July 4, 2015, as a result of the sole negligence of Contractor, Contractor shall credit the City $50 for each full minute of delay up to $2,000. • In the event the aerial fireworks display substantially complies with the Scope of Work as set forth in Exhibit "A," but is interrupted as a result of the sole negligence of Contractor, Contractor shall credit City $100 for each full minute of interruption up to $2,000. 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 Contractor for the purposes of this paragraph. • In the event the aerial fireworks display substantially complies with the Scope of Work as set forth in Exhibit "A," but fireworks in excess of the industry standard 3% fail to fire, Contractor shall credit City with the full list value of the product that failed to fire in excess of 3%. • in the event that the aerial fireworks fails to substantially comply with the Scope of Work as set forth in Exhibit "A," Contractor, shall credit City with up to 50% of the aerial fireworks display price. Such credit shall be inclusive of any credits set forth in bullets 1, 2, and 3 above. 2 • Nothing in this paragraph shall prevent the parties from reaching agreement that all or a portion of the credit may be in the form of enhancements to future aerial fireworks displays. Section 4. Independent Contractor. It is agreed that the Contractor shall act and be an independent Contractor and not an agent or employee of the City, and shall obtain no rights to any benefits which accrue to City's employees. Section 5. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Contractor shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Contractor is permitted to subcontract any part of this Agreement by City, Contractor shall be responsible to the City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. Ail persons engaged in the work will be considered employees of Contractor. City will deal directly with and will make all payments to Contractor. Section 6. Force Majeure. City agrees to partially assume the risks of weather, strike, civil unrest, terrorism, military action, governmental action, and other causes beyond the control of the Contractor which may prevent the aerial fireworks display from being safely discharged on the scheduled date. If, for any such reason. Contractor is not reasonably able to safely discharge the aerial fireworks display on the scheduled date, City may: (1) reschedule the aerial fireworks display on a mutually agreed upon date occurring not later than six months from the scheduled date, and pay to Contractor the balance of the aerial fireworks display fee within fifteen business days of completion of the rescheduled aerial fireworks display; or (2) cancel the aerial fireworks display, forfeit the deposit, and be relieved of any obligation to pay Contractor the balance of the aerial fireworks display fee. Section 7. Familiarity with Work and/or Construction Site. By executing this Agreement, Contractor warrants that: (1) it has investigated the work to be performed; (2) if applicable, it has investigated the work site(s), and is aware of all conditions there; and (3) it understands the facilities, difficulties and restrictions of the work to be performed under this Agreement. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the City, it shall immediately inform the City of this and shall not proceed with further work under this Agreement until written instructions are received from the City. 3 Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Continuity. Contractor shall establish aerial fireworks display "continuity" (i.e., test and confirm the functionality of eiectrically fired pyrotechnic lines, channels and circuits) by no later than 7:00 p.m. on the Scheduled Date, or no less than two hours prior to the Scheduled Time, as such time may be modified by the City. Section 10. Compliance with Law. Contractor shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 11. Conflicts of Interest. Contractor covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement No person having such interest shall be employed by or associated with Contractor. Section 12. Indemnity. To the fullest extent permitted by law. Contractor agrees to protect, defend, and hold harmless the City and its elective and appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damages of any nature, including to property or interference with use of property, arising out of, or in anyway connected with the negligence, recklessness and/or intentional wrongful conduct of Contractor, Contractor's agents, officers, employees, subcontractors, or independent contractors hired by Contractor in the performance of the Agreement. The only exception to Contractor's responsibility to protect, defend, and hold harmless the City, is due to the negligence, recklessness and/or wrongful conduct of the City, or any of its elective or appointive boards, officers, agents, or employees. This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor. Section 13. Insurance. On or before beginning any of the services or work called for by any term of this Agreement, Contractor, at its own cost and expense, shall carry, maintain for the duration 4 of the agreement, and provide proof thereof that is acceptable to the City, the insurance specified below with insurers and under forms of insurance satisfactory in all respects to the City. Contractor shall not allow any subcontractor to commence work on any subcontract until all insurance required of the Contractor has also been obtained for the subcontractor. Insurance required herein shall be provided by Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A- Class VII or better. 13.1 Commercial General Liability. Throughout the term of this Agreement, Contractor shall maintain in full force and effect Commercial General Liability coverage in an amount not less than five million dollars per occurrence ($5,000,000.00), combined single limit coverage for risks associated with the work contemplated by this agreement. If a Commercial General Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this agreement or the general aggregate limit shall be at least twice the required occurrence limit. 13.2 Comprehensive Automobile Liability. Throughout the term of this Agreement, Contractor shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non- owned vehicles in an amount not less than three million dollars ($3,000,000.00) per occurrence 13.3 Workers' Compensation. If Contractor intends to employ employees to perform services under this Agreement, Contractor shall obtain and maintain, during the term of this Agreement, Workers' Compensation Employer's Liability Insurance in the statutory amount as required by California law. 13.4 Proof of Insurance Requirements/Endorsement. Priorto beginning any work under this Agreement, Contractor shall submit the insurance certificates, including the deductible or self-retention amount, and an additional insured endorsement naming City, its officers, employees, agents, and volunteers as additional insured as respects each of the following: Liability arising out of activities performed by or on behalf of Contractor, including the insured's general supervision of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or automobiles owned, leased, hired, or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded City, its officers, employees, agents, or volunteers. 5 13.5 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be cancelled, nor the coverage reduced, until after thirty (30) days' written notice is given to City, exceptthat ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 13.6 Terms of Compensation. Contractor shall not receive any compensation until all insurance provisions have been satisfied. Section 14. Termination. City shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to Contractor. In addition, this Agreement may be terminated by any party for cause by providing ten (10) days' notice to the other party of a material breach of contract. If the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. Section 15. Notice. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: To City: Attn: Cynthia Alexander, Community Services Director City of San Juan Caplstrano 25925 Camino del Avion San Juan Caplstrano, CA 92675 Contractor: Attn: Augie Santore, President Garden State Fireworks, Inc. 383 Carlton Road Millington, NJ 07946 Section 16. Entire Agreement This Agreement and Exhibit "A" constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. [SIGNATURE PAGE TO FOLLOW] 6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. CITY OF SAN JUAN CAPISTRANO By: Derek Reeve, Mayor Mana MbViSi, City Clerk APPROVED AS TO FORM: GARDEN STATE FIREWORKS, INC. Augie S^tore, President H^Vis Van Ligten, City Attorney Exhibit "A": Scope of Work 7 EXHIBIT "A" SCOPE OF WORK THE CITY OF SAN JUAN CAPISTRANO 2015 4™ OF JULY CELEBRATION AERIAL FIREWORKS DISPLAY Electronically Fired Show with Choreographed and Synchronized Music Not To Exceed $30,000 Contractor To: Submit a proposal for an aerial fireworks display that includes the following: using a 3" minimum sheli size, and a 5" maximum shell size, to provide an 18-20 minute show. Please ensure that the proposal is divided into the three (3) categories and specify what would be included within each category: a. Opening Finale b. Main Program 0. Closing Finale Provide a written description of the company's policy for monetary compensation to the City due to the company's actions (or inactions) when: a. The aerial fireworks display does not begin on time, or there is a delay during the show. b. The show does not comply with the Scope of Work and/or the bid package that was submitted by the Contractor and approved by the City. 0. There is a modification to the show, even though the show began on time and there were no delays during the show, d. Even though the correct amounts of shells are delivered, all the shells are not fired. 3. Provide a California licensed lead pyrotechnic operator (Operator) and crew; provide transportation of the crew and all supplies and materials to and from event. The Operator and the crew will be responsible for all site preparation and site cleaning, including removal of debris associated with the aerial fireworks display. City wili not accept responsibility for advance storage of fireworks and/or vehicle(s). 4. Contractor's Operator shall have a minimum of three (3) years of experience providing public aerial fireworks displays, and/or has suooessfuily provided no less than ten (10) public aerial fireworks displays. Page 1 5. Contractor shall furnish to the City of San Juan Caplstrano, no later than June 5, 2015, the name of the Operator responsible for the aerial fireworks display and a copy of his/her Basic Commercial or Special Effects 1^* Class License. 6. Schedule the Operator and crew adequate time for setup, takedown and cleanup of the firing site and fall-out area immediately after the show and the foliowing morning. 7. Coordinate with the Orange County Fire Authority and comply with all regulations. 8. Schedule representative(s) to meet on site with the City staff and the Orange County Fire Authority prior to the event to coordinate event details. 9. Provide music that is choreographed and synchronized to the aerial fireworks show. Music Is to be provided to the City by mp3 and a backup CD. 10. Provide an 18-20 minute show; be responsible for the timely completion of all preparation work so the aerial fireworks display wilt begin at its official starting time of 9:00 p.m. 11. Provide the City with a certificate of insurance* for public liability and property damage, minimum sum of $5,000,000 AND provide the City with a liability endorsement form* naming the City of San Juan Caplstrano, its elected and appointed officials, employees and sen/ants as additional named insureds. Also to be included on oertifioate and endorsement: South Coast Farms, Crange County Fire Authority. 12. Provide the City with proof of Workers' Compensation Insurance* for all employees as required by State iaws governing aerial fireworks displays and proof of Automobile Insurance coverage* for all employees who will be driving automobiles associated with this event. 13. Provide references for ail July 4* aeria! displays conducted for the past three (3) years in Crange County, CA. This listing will be used to determine a satisfactory and reliable performance history. City To: • Provide sand, hand radio and CD Players, Clear-Com oommunication system, sound system, suitable firing site, and City liaison. Term; • The term of the agreement with the Contractor shall be for the year 2015 aerial fireworks display. *Must be received by the City a minimum of 21 working days priorto the event. Page 2 Description of shells and cakes for Garden State Fireworks, Inc. to be performed for the July 4, 2015 Fireworks Aerial Display DESCfflFTTONOF SHELL RFF'KiailNCETO IITERATUBE QTY 3" Aerial Display Shells **See pgs. 5 and 6 150 4" Aerial Display Shells **See pgs. 5 and 6 36 5" Aerial Display Shells **See pgs. 5 and 6 20 1.2"64 Shot Silver Crossette **See pgs. 5 and 6 64 Shots 1.2" 100 Z Fan Waving Red Crossette **See pgs, 5 and 6 100 Shots I" Red Silver Blue Comets (ISO) **See pgs. 5 and 6 180 Shots Total of Intro/Opening Finale - Aerial Shells/Effects: 550 DISCKIPTIOKOF SHELL KEFESENOETO IITEKATDKE QTY 3" Aerial Display Shells **See pgs. 5 and 6 350 4" Aerial Display SheOs **See pgs. 5 and 6 208 5" Aerial Display SheDs **Se6pgs. 5 and 6 176 • Total of Main Body -- Aerial Shells : 734 Main Body; Miilti Shot Pyrotechnic Devices Malti4Shot Devices l"-!" REFESENCIF.TO IITERATyME QTY 36 Shot Multicolors (8) **Seepgs. 5 and 6 288 Shots 100 Shot Red Peony with White Tail **See pgs. 5 and 6 100 Shots 72 shot RWB Peony **See pgs. 5 and 6 • 72 Shots 408 Z Fan Waving RWB Comete **See pgs, 5 and 6 408 Shots 408 2 Fan Waving Rainbow Comets **See pgs. 5 and 6 408 Shots Page 3 88 Shots Red With Silver Glitter **Seepgs. 5 and 6 88 Shots 88 Shots Blue Peony with White Tail **See pgs. 5 and 6 88 Shots 100 Shots Brocade and Blue **See pgs, 5 and 6 100 Shots 90 Shots Silver Spmners **See pgs. 5 and 6 90 Shots 64 Shot Color Comet to Crossettes **See pgs. 5 and6 . 128 Shots 100 Shot Crackling Bouquet **See pgs. 5 and 6 100 Shots 300 Shot Dragon And Phoenix **See pgs. 5 and 6 300 Shots 165 Shot 8 Shape Chrysantherautn **See pgs. 5 and 6 165 Shots 90 Shot Ancient War (2) **See pgs. S and 6 180 shots 90 Shot Porple and Green Comets (2) **See pgs. 5 and 6 180 shots TOTAL Pyrotechnic Special Eflfect Devices : 2,695 Shots GRAND FINALE: • DESCRimONOF SHF-T,T,/EFFECT QTY 100 Shot Red and Blue Peony (2) **See pgs. 5 and 6 200 Shots 100 Shot Whistle (2) **S66 pgs. 5 and 6 200 Shots 665 Shot Multi Color to Saltrte Fan **Se6 pgs, 5 and 6 1330 Shots 372 Shot Golden l^in & Red W Fan **See pgs. 5 and 6 372 Shots Aerial Display Shells 3" Finale Shells **See pgs. 5 and 6 380 4" Finale Shells **See pgs- 5 and. 6 36 5" Finale Shells **Seepgs. 5 and. 6 24 Tots! of Grand Finale - Aerial Shells/Effects; 2,542 Production Total Shells and Pyrotechnic Effects: 6,521 Pieces Page 4 DISPLAY SHELL AND EFFECT DESCRIPTION The following list is a reference of the shells and variety of effects that will be used in the display and corresponds to the pieces itemized in the cost proposal. Garden State Fireworks is proud to be the largest mannfactnrer of display fireworks in the countiy. We continue to innovate, design and manufacture our own products at our facility in New Jersey to incorporate in our displays. We also use our 100 plus years of experience to research, design and purchase the highest qualify and largest selection of import products from China and Japan. We also use our manufacturing knowledge to perform rigorous quality and safety testing on all imported products^ Mnlti-shot Cake Effects: Effects Listed in the Cost proposal ranging troni 88 shots to 665 shots are self-contained repeater units custom desigrred by Garden State Fireworks and manufactured to the highest quality standards. Effects repeat in a variety of multiple angled simultaneously fan shapes, or elaborate zigrzagging wave configurations. Shots range from 1.5 inches to 2 inches and create ground to sky coverage to be coordinated with aerial display shells. **Special Note: More then ninety percent of the display shells fired in the display and listed below include a rising sOver or color tailed tracer that follows the shell from launch to break. We purchase display shells at an additional premium to include a. fancy rising tail to create absolute continuity of slcy coverage. As each display shell has a 2-4 second lift time the absence of a tracer effect creates a dark sky. The premiums of our designs eliminate the lag time to create constant sky coverage and momentum. A sample of our massive library is available for review in Schedule A enclosed. The July 4* Display will draw from our diverse library of effects and include the broad spectrum and maximum variety of shells. The following List of Materials is a condensed version, of our extensive library of effects that will be displayed in. your program. Color combinatious within individual effects as well as transformation color changing effects expand the list below to hundreds of vari.eties. 3" Assorted Color and Retwrt Shells: Red Peony White Peony Blue Peony Red White And Blue Peony Green Peony Yellow Peony Trtaaium Reports Mttlti-Salutes Silver Peony Red and Blue Wave Color Changing Peonies Flash Reports Spider Webs Aqua Peony Variegated Chrysanthemums Ring Patterns Purple Peony Golden Willow Crackling Chrysanthemum Rainbow Peony Tiger Tails Multi Color Combinations Page 5 4" Assorted Color and Fancy Aerial Sbelis; Red Peony White Peony Blue peony Red White And Bine Peony Green Peony Yellow Peony Lemon Peony Orange Peony Aqua Peony Rainbow Peouy MuW Color Combinations Titaninm Reports Multi-Salutes White Strobe Red Strobe Color Changing Peonies Flash Reports Spider Webs Whistling Shells Variegated Chrysanthemuras Wave Ring Patterns Golden Strobe Purple Peony Golden Willow 5" Assorted Color and Fancy Aerial Shells: ***ALL COLORS AND EFFECTS LISTED Smile Face Patterns Heart Shape Patterns Lemon Crossette w/Strobe Pistfl Variegated Strobes Thousands of Flowers Red Falling Leaves Blue to White Flashing Willow Half Red and Half Bine Peony Half Purple/BWf Yellow Peony Sky Waterfall Silver Crossette CrackMng Crossette Sea Blue Peony Purple Bees Varigated Falling Leaves Thousands of Red White & Blue Pink Peony Four Color Changing Peonies Red Coconut Tree Aqua to Lemon w/Lemon to Aqua Pistil Brocade Chrysanthemum Cntckling Chrysanthemum Crackling Rain Willow Tiger Tails Red Wave Green Wave Colors w/Palm Core Centers Peonies w/Fancy Center Pisdls WMstling Shells Red Crossettes Green Crossettes Silver Palm Trees Tourbillions & Serpents Silver Crown c/c Green Gold Karauro c/c Blue Red and Green Bees Variegated Fish ThoHsands of Crackling Flowers Colors to Crackling Dragon Eggs Glittering Willows Color & Timed Reports Hummer Shells Gold Flitter ABOVE IN 4" DISPLAY SECTION Green Coconut Tree Aqua Crossette Whirl Flower w/Strobe Pistil Three Color Changing Peonies Glittering Gold to Purple Red and Blue Wave Green and Blue Wave White w/Red Pistil Purple w/Green Pistil Lemon to Purple w/PnrpIe to Lemon Pistil Red Dahlia w/Whitc Strobe Aqua Dahlia w/Red Strobe Pistil Red to Silver Wave w/BIue Pistil Nishiki Karauro Nlagra Falls Red Strobing Nishiki Kamaro Reddish Gamboge to Green Blue Circle with Twice Crackling Pistil Multi Color Gycas Page 6