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HomeMy WebLinkAboutAgenda Report - May 17, 2017 C-12TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM G4 2 AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Execute Contract with J&M Displays, Inc., for the 2017 and 2018 Fourth of July Fireworks Shows at Lodi Lake Park, with One 2 -year Extension if in the Best Interest of the City, for a Total Not to Exceed Amount of $64,000 MEETING DATE: May 17, 2017 PREPARED BY: Parks, Recreation and Cultural Services Director RECOMMENDED ACTION: Adopt resolution authorizing the City Manager to execute contract with J&M Displays, Inc., for the 2017 and 2018 Fourth of July fireworks shows at Lodi Lake Park, with one 2 -year extension if in the best interest of the City, for a total not -to -exceed amount of $64,000. BACKGROUND INFORMATION: On March 30, 2015, City staff provided bid packets to prospective firework show providers. Prospective show providers would be responsible for providing the labor, materials, product and one onsite licensed fireworks technician to provide and perform a minimum of an 18 -minute firework show on the water at Lodi Lake Park, working with a $16,000 budget. Staff received two bids, but only J&M Displays, Inc., agreed to meet all of the City's requirements. J&M Displays has been the provider of the fireworks shows at Lodi Lake for the past several years. This vendor is responsive to our planning and load -in and load -out schedules. The past firework shows have been performed with safety being the upmost priority and has been well-received by the viewers. The fireworks contract approved by the City Council in 2015 referenced a two-year option, but it was not included in the binding resolution. This action essentially triggers the option outlined in 2015, and authorizes the City Manager to extend the agreement for 2019 and 2020 if in the best interest of the City. FISCAL IMPACT The General Fund typically budgets $16,000 a year for this fireworks display, half payable in advance in the fiscal year preceding the show, and the other half payable in the fiscal year of the show. FUNDING AVAILABLE: Special Events Account No. 10010102.72750 Andrew Keys, Deputy City Manager/Internal Services Director ry�.��,�,i�`.. G Jeff Hdod Director Parks, Recreation and Cultural Services APPROVED: S ephen Schwbuer, City Manager J&M Displays Inc. P.O. Box 3444 Diamond Springs, CA 95619 916-870-0531 Phone 530-626-7444 Fax FIREWORKS PRODUCTION AGREEMENT This agreement ("Agreement") is made this_ day of , 2017 by and between J&M Displays an Iowa corporation, hereinafter referred to as ("J&M"), and the City of Lodi Parks, Recreation and Cultural Services Department, hereinafter referred to as ("BUYER"). J&M and BUYER are sometimes referred to as "Party" or collectively as "Parties" herein. 1. SERVICES TO BE PROVIDED: The BUYER hereby engages J&M and J&M hereby agrees to provide the services necessary or required to design, create, develop, construct, maintain and otherwise produce for the BUYER the Fireworks Production (collectively, the "PRODUCTION") required by the BUYER for the production as detailed in attached Exhibit "A"_ J&M Duties — J&M shall provide all pyrotechnic equipment, trained pyrotechnicians, shipping, pyrotechnic products, apply for all pyrotechnic permit and insurance covering the Production and the other things on its part to be performed as set forth below in thit#Agreement. BUYER Duties— BUYER shall provide to J&M a suitable site ("Site") for the Production, security for the Site as set forth below, access to the Site, and acquire any permission necessary to utilize the Site for the Production. All Site arrangements are subject to J&M's reasonable approval as to safety, suitability, and security. Ali other conditions of the Site shall be the responsibility of BUYER, including, but not limited to, access, use, and control, parking and general safety with respect to the public, BUYER personnel and other contractors. BUYER shall also pay for the cost of all permits and lire watch fees. BUYER shall provide secure parking for J&M's vehicles on the show site. However, BUYER shall have no liability for third -party theft or damage to J&M or its workers' vehicles BUYER shall provide clean dry sand, if required, for mortar boxes or troughs. 2. Times for Performances: J&M and Buyer agree that this Agreement shall be for a multiple year term on the terms and conditions as set forth in Exhibit B, attached hereto, and incorporated herein by this reference. The first of two productions shall take place on July 4, 2017. The production will occur at approximately 9:30 p.m. at the site: Barges on Lodi Lake, 1101 W. Turner Rd, Lodi, Calif. The second of the two productions shall take place on July 4, 2018 at approximately 9:30 pm at the site: Barges on Lodi Lake, 1101 W. Turner Rd, Lodi, Calif. 3. COMPENSATION: Provided J&M is not in breach of this Agreement and has rendered all services required by the BUYER hereunder, during the Term, the BUYER shall pay J&M the following sums, all shown in U.S. dollars, as follows: A. Terms and Condition 1) Fee and Deposit BUYER agrees to pay J&M a fee of $16,000.00 USD (SIXTEEN THOUSAND DOLLARS) for each Production. BUYER shall pay to J&M $8,000.00 USD (EIGHT THOUSAND DOLLARS) plus estimated permit and standby fees, specified production costs, and other regulatory costs estimated at ($135.00) (INCLUDED), for a total of $8,000.00, as a deposit ("Deposit"). Page 1 of 6 The Deposit must be received no later than, April 30, 2017. The balance of $8,000.00 USD (EIGHT THOUSAND DOLLARS) shall be paid no Tater than July 10, 2017. For the 2018 production, the deposit must be received no later than April 30, 2018 and the balance shall be paid no later than July 10, 2018 B. Weather Delay/Cancellation: If Buyer postpones or cancels the fireworks display 10 or more days prior to the display date, there will be no charges assessed to Buyer. If the Buyer cancels the fireworks display less than 10 days prior to the show date (not including the day of the show), Buyer will be responsible for paying 30% of the contract price for full settlement of this Agl'eement. If the Buyer cancels the fireworks display on the day of the show, Buyer is responsible for paying to the Seller the shoot fee cost of $1,800.00, delivery fee cost of $575.00, and 30% of the contract price for full settlement of this Agreement. Rain Date: Should inclement weather prevent the firing of the display on the date mentioned herein, the parties agree to a mutually convenient rain date of July 5, 2017; and a rain date of July 5, 2018, for the production scheduled July 4, 2018. If the display is postponed to the mutually agreed Rain Date, the Buyer is responsible for paying to the Seller an additional shoot fee cost of $1,800.00 and delivery fee cost of $575.00. C. To the extent that changes required by the BUYER in the plans cause a material increase in the cost of producingthe production, J&M shall promptly notify the BUYER in writing of the approximate amount of such increase, and the BUYER and J&M shall in good faith determine an appropriate increase in the compensation payable to J&M pursuant to clause 3 (A) above. If the parties cannot agree upon an appropriate increased amount in writing, the original agreement must be performed. D. Interest - In the event that the Fee is not paid in a timely manner, BUYER agrees to payment of 1.5% interest per month or 18% annually on the unpaid balance. If litigation arises out of this Agreement, the prevailing party shall be entitled to reasonable costs incurred in connection with the litigation, including, but not limited to attorneys' fees. 4. WARRANTIES AND INDEMNIFICATION: 1) It is hereby represented and warranted that: a) Claims: The Production shall be free from any and all claims, liens, judgments, or suits of any nature, and that implementation of the production will not impair or interfere with the BUYER's use of the Production or any other rights granted to the BUYER hereunder, and that in connection with the services rendered by the J&M, J&M will not knowingly violate or infringe upon the trademark, trade name, copyright, patent, literary right or any other right of any other person, firm or corporation. b) BUYER represents that it has or will obtain any permission from appropriate third parties sufficient to authorize public exhibition of any such material in connection with this Production including but not limited to music rights or royalties for public performance. Page 2 of 6 2) Condition: The Production, when setup and executed correctly as designed and specified by J&M, will be suitable for the purposes intended, and will not utilize any practice which is likely to cause personal injury or other health hazards to persons viewing the production as contemplated hereunder or working within the recommended proximity of the production. 3) The BUYER hereby represents and warrants that it has ascertained that the requisite ceiling heights and or display fallout radius as specified by J&M will be available and appropriate safety clearances will be maintained over and around the production at all times prior to while the production is in performance. 4) BUYER shall indemnify, hold harmless, and defend J&M from and against any and all claims. actions, damages, liability and expenses, including but not limited to attorney and other professional fees and court costs in connection with the loss of life, personal injury, and/or damage to property, arising from or out of the Production and the presentation thereof to the extent such are occasioned by any act or omission of BUYER, its officers, agents, contractors, providers, or employees, In no event shall either party be liable for the consequential damages of the other party. J&M shall have no responsibility for monitoring or controlling BUYER's other contractors, providers or volunteers; the public; areas to which the public or contractors have access; or any other public or contractor facilities associated with the Production. J&M shall indemnify, hold harmless and defend the BUYER and its elected and appointed officers, directors, shareholders, employees and representatives from and against any and all cost, liability, damages and expense (including, but not limited to, reasonable attorneys' fees) in connection with the loss of life, personal injury, and/or damage to property, arising from or out of the Production and the presentation thereof to the extent such are occasioned by any act or omission of J&M, their officers, agents, contractors, providers, or employees. 5. OWNERSHIP OF PRODUCTION_ All rights to the Production and the design thereof shall be the property of J&M, who shall retain all copyright, trademark and other proprietary rights in the Production. 6. OWNERSHIP OF PROCEEDS: All of the proceeds of the services rendered hereunder by J&M are works specifically ordered by the BUYER, and the BUYER shall have the free and unrestricted right to use and exploit the production in any manner whatsoever as the BUYER may designate in its sole discretion. J&M reserves the right to use images of the production on its own website and promotional materials within the extent provided by and subject to copyright laws. In all cases the photos will be credited to the owner. 7. INSURANCE: J&M shall at all times during the performance of services herein ensure that the following insurance is maintained in connection with J&M's performance of this Agreement: (1) Ten Million dollars per occurrence of commercial general liability insurance, including products, completed operations, and contractual liability under this Agreement; (2) Ten Million dollars per occurrence of automobile liability insurance; (3) One Millions dollars per occurrence workers' compensation insurance, and unemployment insurance as required by law. In connection with workers' compensation insurance, J&M agrees that in undertaking the duties to be performed under this Agreement, it shall act as an Page 3 of 6 independent contractor for and on behalf of the BUYER and not an employee of BUYER. BUYER shall not direct the work and means for accomplishment of the services and work to be performed hereunder. BUYER however, retains the right to require that work performed by J&M meet specific standards without regard to the manner and means of accomplishment thereof. General Liability Insurance is to protect BUYER from claims for bodily injury, including death, personal injury, and from claims of property damage, which may arise from J&M's performance of this Agreement, only. Such insurance shall not include claims which arise from BUYER's negligence or willful conduct or from failure of BUYER to perform its obligations under this Agreement, coverage for which shall be provided by BUYER. J&M shall provide proof of insurance as specified in Exhibit "C". A duplicate or certificate of said insurance policy containing the above -stated required endorsements shall be delivered to the City Risk Manager after the issuance of said policy, with satisfactory evidence that the carrier is required to give the City of Lodi at least 30 days prior notice of the cancellation or reduction in coverage of the policy during the effective period of this Agreement. If there has been no such delivery within 48 hours prior to the expiration date of the policy, this Agreement shall be null and void. r 8 _ C;iPan J&M shall be responsible for the removal of all equipment provided by J&M and clean up of any live pyrotechnic debris resulting from the production. BUYER shall be responsible for any other clean- up which may be required of the Production, set-up, discharge and fallout areas. 9. Safe Display Operation: J&M and BUYER shall each comply with all applicable federal, state and local laws and regulations and employ safety programs and measures consistent with recognized applicable industry standards and practices. At all times before and during the Production, it shall -be within J&M's sole discretion to determine whether or not the Production may be safely discharged or continued, or for J&M to determine that the Production cannot be discharged or continued as a result of any conditions or circumstances affecting safety beyond the reasonable control of J&M. 10. MISCELLANEOUS PROVISIONS: Limitation of Liability: Except in the case of bodily injury and property damage as provided in the insurance and indemnification provisions of Paragraphs 4and 7, above, in the event BUYER claims that J&M has breached this Agreement or was otherwise negligent in performing the Production provided for herein, BUYER shall not be entitled to claim or recover monetary damages from J&M beyond the amount BUYER has paid to J&M under this Agreement, and shalt not be entitled to claim or recover any consequential damages from J&M including, without limitation, damages for loss of income, business or profits_ Force Maieure: BUYER agrees to assume the risks of weather, strikes or other labor troubles, fire damages to or destruction in whole or part of merchandise or the manufacturing plant(s), civil unrest, terrorism, military action, governmental action, and any other causes beyond the control of J&M which may prevent the Production from being discharged on the scheduled date. These events will excuse J&M from the performance of the Agreement. However, if these events do not prevent the rescheduling date production, it shall be rescheduled to a mutually convenient date. No Joint Venture: Nothing in this Agreement or in J&M's performance of the Production shall be construed as forming a Partnership or Joint Venture between BUYER and J&M. J&M shall be and is an independent contractor with BUYER and not an employee of BUYER. 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. Assignment: The BUYER may transfer or assign this Agreement or all or any part of its rights hereunder to any person, firm or corporation, and this Agreement shall inure to the benefit of and be binding upon the heirs, successors and assigns of either of the parties hereto. No such transfer Page 4 of 6 or assignment, however, shall relieve the BUYER of its obligations to J&M hereunder unless the transferee or assignee shall assume in writing such obligations. J&M may assign its right to receive revenues hereunder, but otherwise it shall not assign any of its obligations or rights relating to this Agreement. Notices: All notices (and statements and payments, if applicable) shall be in writing and shall be given by the parties personally or by mailing (postage prepaid), or by faxing with copy by mail same to the appropriate party at the addresses set forth below: J&M J&M Displays Inc., 16064 170th Ave, Yarmouth, IA 52660 Or, for overnight delivery to: J&M Displays Inc., 18064 170t' Ave, Yarmouth, IA 52660 BUYER - City of Lodi Parks, Recreation and Cultural Services Department, P.O. Box 3006, Lodi, CA 95241 The date of receipt of such personal delivery, mailing or faxing shall be presumed to be not later than two (2) days following submission of such notice, statement or payment, properly addressed to the applicable party. Governing Lahr The laws and judicial decisions of the State of California applicable to agreements entered into and to be wholly performed therein shall govern this Agreement. Additional Documents. The parties hereby agree to execute such additional document(s) as may be reasonably necessary or desirable in order for either of such parties to enforce their respective rights hereunder. Entire Agreement: This Agreement expresses the binding and entire agreement between the BUYER and J&M and shall replace and supersede all prior arrangements and representations, either oral or written, as to the subject matter hereof. All terms of the 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. Sev©rability: This agreement shall become effective after it is executed and accepted by the BUYER and after it is executed and accepted by J&M at its offices in Yarmouth, IA. This Agreement shall be binding upon all Parties hereto and upon their heirs, successors, executors, administrators, and assigns. Page 5 of 6 EXECUTED as of date first written above: J&M DISPLAYS INC_ By: STEVE SOUZA VICE PRESIDENT STEVE SOUZA CITY OF LODI By: STEPHEN SCHWABAUER CITY MANAGER (Print Nante) (Print Name) APPROVE AS TO FORM ATTEST: JANICE D. MAGDICH CITY ATTORNEY JENNIFER FERRAIOLO CITY CLERK Page 6 of 6 PO Box 3444 Diarnonrl Springs, CA 95619 o.L.E 916-870-0531 FA>;. 530-626-7444 ssouza,g'iandmrlisp!ays.cnni BY: MULTIPLE YEAR AGREEMENT Exhibit "B" THIS AGREEMENT is made and entered into this day of , 20 , by and between J & M Displays Inc., an Iowa corporation, having its principal place of business at Yarmouth, Iowa, hereinafter referred to as "Seller", and City of Lodi Paries, Recreation and Cultural Services Department hereinafter referred to as "Buyer". Whereas, the parties agree as follows: 1. Buyer hereby agrees to purchase all of their fireworks exclusively from Seller for the next two years (2017, 2018). In consideration thereof, Seller hereby agrees to provide bonus product to the Buyer in an amount based on the total dollars of fireworks purchased by Buyer for a given year. The Seller will have the final choice of bonus product but said product is to be fireworks of like quality and condition as the fireworks purchased by Buyer from Seller for the given year. The bonus schedule is as follows: • 151 Year: Bonus product equaling a dollar value of 15% of the total fireworks dollar value purchased by Buyer (total dollar value is fireworks only and excludes cost of insurance. Shoot fee, taxes, etc.); • 2nd Year: Bonus product equaling a dollar value of 15% of the total fireworks dollar value purchased by Buyer (total dollar value is fireworks only and excludes cost of insurance, shoot fees, taxes, etc.); 2. in no way is the Buyer obligated to purchase fireworks from Seller for any of the years covered by this Agreement. Rather, Buyer is only obligated to purchase fireworks from Seller should Buyer opt, at Buyer's sole discretion, to have a fireworks display at its event for the years in question. 3. Extension: The final year of the Multiple Year Agreement the Buyer will have the option to extend the Multiple Year Agreement for an additional two years if both parties mutually agree and a Multiple Year Agreement Extension is completed and signed. 4. Termination: This Agreement will expire two (2) years from its execution unless otherwise extended by the parties pursuant to paragraph 3 above. The Buyer may, at its sole discretion, terminate this Agreement within 30 days after their fireworks display date. If Agreement is not terminated within the 30 -day deadline, this Agreement will be in full force and effect for the following year. SELLER September 15. 2016 DATE BY: STEPHEN SCHWABAUER CITY MANAGER BUYER DATE Approved as to form City Attorney www.jandmdisplays.com �o&vt�rs fir PO Box 3444 D'Hirnond Springs, CA 951;10 ?oxO B16-b7O-0531 530-h26-7444 ssouzaixqanrlmrriispinys.com Opening - 2.5 Inch Finales CITY OF LODI PARKS Sic RECREATION AND CULTURAL SERVICES July 4th 2017, 2018 Program "A" Main Event - 4 Inch Color Shells 1 Salute with palm 10 Shot finale chain Type shell count 10 Category shell count 10 Main 510 36 Event - Ignition Items Igniter 2 meter leads Igniter 3 meter leads 0 Main Event - 3 Inch Color Shells 2 Chrysanthemum to big crackling rain w/ big crackling rain pistil 2 Crown to glittering 2 Glittering gold to Emerald kamuro w/ strobe pistil 2 Glittering willow glitter tail 2 Nishiki kamuro niagara falls with variegated pistils 2 Strobe w/ ring assorted 2 White strobe with red dahlia glitter tail 2 Willow with strobe pistil gold tail 2 Assortment B of 20 (5 report& 15 color) Patriotic shells ELECTRIC FIRE mixed tails 2 Assortment C of 20 (5 report& 15 color) shells ELECTRIC FIRE 2 Assortment F of 20 different J&M Brand Shells ELECTRIC FIRE mixed tails 2 Assortment G Of 20 different J&M shells ELECTRIC FIRE 2 Assortment H of 20 different J&M shells ELECTRIC FIRE mixed 2 Assortment M of 20 different J&M Brand Shells ELECTRIC FIRE mixed tails 1 Assortment Y of 10 pairs of 3" J&M shells ELECTRIC FIRE Type shell count 276 Main Event - _3 Inch Special Effect Shells 2 Artillery 2 Color whistle with reports 2 Green with silver serpents 2 Orange with silver serpents 2 Red and blue with artillery 2 Red and blue with silver serpents 2 Red and blue with whistles Type shell count 14 i! Proposal number: 35455 Designed 3/15/2016 1 1 1 2 1 1 2 1 Brocade ring Willow to red white and blue Assortment B of 20 different J&M Brand shells ELECTRIC FIRE mixed tails Assortment C of 20 different J&M Brand Shells ELECTRIC FIRE Assortment F of 20 different J&M Brand shells ELECTRIC FIRE mixed tails Assortment G of 20 different J&M Brand Shells ELECTRIC FIRE Assortment P of 20 different J&M Brand shells ELECTRIC FIRE mixed tails Assortment Q of 10 Patriotic pairs of 4" J&M Brand shells Assortment R of 10 different pairs of J&M Brand shells ELECTRIC FIRE Type shell count 182 Main Event - 4 Inch Special Effect shells Blue peony with double palm tree & strobe pistil Crackling nishiki kamuro Diadem - var. color crackling 2 Green to crackling ghost peony 1 Half blue and half red with midnight snow ring 2 Multicolor strobe 2 Nishiki kamuro niagara falls 2 Silver coconut to red 2 Sizzling green and purple comets 2 Sizzling lemon and purple comets 2 Twilight glitter comets 2 Varigated peony to crackling Type shell count 20 Main Event - 5 Inch Assort E -FIRE 1 Assortment P of 10 Special J&M Brand pattern shells ELECTRIC Type shell count 10 Category shell count 502 Finales - 2.5 Inch Finales 12 Red white and blue 10 Shot finale chain Type shell count 120 Finales - 3 Inch Finales 5 Report and palm 10 Shot finale chain Type shell count 50 Finales - 4 Inch Finales 4 Mixed color peony 8 shot finale chain 3 Red white and blue dahlia 8 shot finale chain Type shell count 56 Category shell count 226 Printed 9/15/2016 mixed tails Page 1 of 3 www.jandmdisplays.com ipt w PO Box 3444 Diamond Spriog<, C.4 95619 916-P70-0531 530-62E-7444 rwai� ssouza, ,a9dmorspla,4.coM CITY OF LODI PARKS & RECREATION AND CULTURAL SERVICES July 4th 2017, 2018 Program "A" Free 15% for Multiple Year Agreement - 3 Inch Finales 5 Color 10 Shot finale chain silver tail 6 Red salute blue 10 Shot finale chain (dahlia) Type shell count 110 Free 15% for Multiple Year Agreement - 4 Inch Color Shells 2 Color dahlia with silver strobe 2 Rainbow crossette 2 White strobe and red dahlia whistling tail Type shell count 6 Free 15% for Multiple Year Agreement - 4 Inch Special Effect shells 1 Half blue and half red with midnight snow ring 2 Lemon strobe Type shell count 3 Category shell count 119 mixed tails Proposal number: 35455 Designed 9/15/2016 Printed 9/15/2016 Page 2 of 3 www.jandmdisplays.com J;&pM S vpiir— PO Box 3444 Diamond Spnngs. CA 95619 916-870-0531 530-626-7444 ssouza 4)andn:. isplays.com CITY OF LODI PARKS & RECREATION AND CULTURAL SERVICES July 4th 2017, 2018 Program "A" This show includes delivery, spectator liability insurance, equipment, and labor to set up and fire the display. Total shot count: 857 Packing 666 Total price of $16,000.00 Date of 7/4/2017 / 2018. Customer number: 11196 Proposal print Please note the following: The data in this proposal is confidential, and is to be accorded confidential treatment and shall not be disclosed other than to the official representative of the organization listed on the cover, and only then when in the evaluation of this proposal. Any reproduction of the contents of this proposal, whether in whole or in part, is expressly forbidden. J & M Displays, Inc. requests that all information be safe -guarded from release pursuant to any request under the Freedom of Information Law of this state or any other state or jurisdiction; as it may cause competitive disadvantage to our company. The enclosed concepts and materials are the sole and exclusive property of J & M Displays, Inc. We reserve the right to make substitutions of equal or greater value. Prices and specifications are subject to change without notice. Shell Summary: Opening Diameter Shell 2.5" 10 Opening Shell count 10 Main Event Diameter Shell 0" 0 3" 290 4" 202 i 5" 10 9 Main Event Shell count 502 Finales Diameter Shell 2,5" 120 3" 50 l(,^ 4" 56 Finales Shell count 226 Free 15% for Multiple Year Agreement Diameter Shell 3" 110 L4 4" 9 Free 15% for Multiple Year Agreement Shell count 119 Proposal number: 35455 Total shell 857 Designed 9/15/2016 Printed 9/15/2016 Page 3 of 3 wwwjandmdisplays.com PO Box 3444 Diamond Springs, CA 95619 vu;a_ 916-870-0531 FAX 530-626-7444 EMAIL ssouza,(2)landmdhsplays.corn BY: MULTIPLE YEAR AGREEMENT Exhibit "B" THIS AGREEMENT is made and entered into this day of , 20 by and between J & M Displays Inc., an Iowa corporation, having its principal place of business at Yarmouth, Iowa, hereinafter referred to as "Seller", and City of Lodi Parks, Recreation and Cultural Services Department hereinafter referred to as "Buyer". Whereas, the parties agree as follows: 1. Buyer hereby agrees to purchase all of their fireworks exclusively from Seller for the next two years (2017, 2018). In consideration thereof, Seller hereby agrees to provide bonus product to the Buyer in an amount based on the total dollars of fireworks purchased by Buyer for a given year. The Seller will have the final choice of bonus product but said product is to be fireworks of like quality and condition as the fireworks purchased by Buyer from Seller for the given year. The bonus schedule is as follows: • 1st Year: Bonus product equaling a dollar value of 15% of the total fireworks dollar value purchased by Buyer (total dollar value is fireworks only and excludes cost of insurance. Shoot fee, taxes, etc.); • 2nd Year: Bonus product equaling a dollar value of 15% of the total fireworks dollar value purchased by Buyer (total dollar value is fireworks only and excludes cost of insurance, shoot fees, taxes, etc.); 2. In no way is the Buyer obligated to purchase fireworks from Seller for any of the years covered by this Agreement. Rather, Buyer is only obligated to purchase fireworks from Seller should Buyer opt, at Buyer's sole discretion, to have a fireworks display at its event for the years in question. 3. Extension: The final year of the Multiple Year Agreement the Buyer will have the option to extend the Multiple Year Agreement for an additional two years if both parties mutually agree and a Multiple Year Agreement Extension is completed and signed. 4 Termination: This Agreement will expire two (2) years from its execution unless otherwise extended by the parties pursuant to paragraph 3 above. The Buyer may, at its sole discretion, terminate this Agreement within 30 days after their fireworks display date. If Agreement is not terminated within the 30 -day deadline, this Agreement will be in full force and effect for the following year. SELLER September 15, 2016 DATE BY: STEPHEN SCHWABAUER CITY MANAGER BUYER DATE www.jandmdisplays.com 7JIM e6P1'AYS. pU Box 3444 lIaronr l SprFngs, CA 95619 nc916-670-25;11 530-625-7444 rrarv- ssnozoi'alandrudIsplays.com CITY OF LODI PARKS & RECREATION AND CULTURAL SERVICES July 4th 2017, 2018 Program "A" Opening - 2.5 Inch Finales 1 Salute with palm 10 Shot finale chain Type shell count 10 Category shell count 10 Main Event - Ignition Items 510 Igniter 2 meter leads 36 Igniter 3 meter leads 0 -- Main Event - 3 Inch Color Shells 2 Chrysanthemum to big crackling rain w/ big crackling rain pistil 2 Crown to glittering 2 Glittering gold to Emerald kamuro w/ strobe pistil 2 Glittering willow glitter tail 2 Nishiki kamuro niagara falls with variegated pistils 2 Strobe w/ ring assorted 2 White strobe with red dahlia glitter tail 2 Willow with strobe pistil gold tail 2 Assortment B of 20 (5 report& 15 color) Patriotic shells ELECTRIC FIRE mixed tails 2 Assortment C of 20 (5 report& 15 color) shells ELECTRIC FIRE 2 Assortment F of 20 different J&M Brand Shells ELECTRIC FIRE mixed tails 2 Assortment G Of 20 different J&M shells ELECTRIC FIRE 2 Assortment H of 20 different J&M shells ELECTRIC FIRE mixed 2 Assortment M of 20 different J&M Brand Shells ELECTRIC FIRE mixed tails 1 Assortment Y of 10 pairs of 3" J&M shells ELECTRIC FIRE Type shell count 276 Main Event - 3 Inch Special Effect Shells 2 Artillery 2 Color whistle with reports 2 Green with silver serpents 2 Orange with silver serpents 2 Red and blue with artillery 2 Red and blue with silver serpents 2 Red and blue with whistles Type shell count 14 Proposal number: 35455 Designed 3/15/2016 Main Event - 4 Inch Color Shells 1 Brocade ring 1 Willow to red white and blue 1 Assortment B of 20 different mixed tails 2 Assortment C of 20 different 1 Assortment F of 20 different mixed tails 1 Assortment G of 20 different 2 Assortment P of 20 different mixed tails Assortment Q of 10 Patriotic Assortment R of 10 different FIRE Type shell count 182 J&M Brand shells ELECTRIC FIRE J&M Brand Shells ELECTRIC FIRE J&M Brand shells ELECTRIC FIRE J&M Brand Shells ELECTRIC FIRE J&M Brand shells ELECTRIC FIRE pairs of 4" J&M Brand shells pairs of J&M Brand shells ELECTRIC Main Event - 4 Inch Special Effect shells 1 Blue peony with double palm tree & strobe pistil 1 Crackling nishiki kamuro 1 Diadem - var. color crackling 2 Green to crackling ghost peony 1 Half blue and half red with midnight snow ring 2 Multicolor strobe 2 Nishiki kamuro niagara falls 2 Silver coconut to red 2 Sizzling green and purple comets 2 Sizzling lemon and purple comets 2 Twilight glitter comets 2 Varigated peony to crackling Type shell count 20 x - Main Event - 5 Inch Assort E -FIRE 1 Assortment P of 10 Special J&M Brand pattern shells ELECTRIC Type shell count 10 Category shell count 502 , • - Finales - 2.5 Inch Finales 12 Red white and blue 10 Shot finale chain Type shell count 120 Finales - 3 Inch Finales 5 Report and palm 10 Shot finale chain Type shell count 50 Finales - 4 Inch Finales 4 Mixed color peony 8 shot finale chain 3 Red white and blue dahlia 8 shot finale chain Type shell count 56 Category shell count 226 Printed 9/15/2016 mixed tails Page 1 of 3 www. jandmdispiays.com PO Box 3444 DiFirnm l Sprnu3s, CA 95619 ,Hi: �. . 111r• PO Box 3444 Warnond Sprigs. CA 95619 ,rlucr 916-870-0531 ;;,;...530-626 53O626744 .11141 ssouza.--3`3ar!dmchspHys.corr'. CITY OF LODI PARKS & RECREATION AND CULTURAL SERVICES July 4th 2017, 2018 Program "A" This show includes delivery, spectator liability insurance, equipment, and labor to set up and fire the display Totalshot count: 857 Total price of $16,000.00 Packing 666 Date of 7/4/2017 / 2018. Customer number: 11196 Proposal print Please note the following: The data in this proposal is confidential, and is to be accorded confidential treatment and shall not be disclosed other than to the official representative of the organization listed on the cover, and only then when in the evaluation of this proposal. Any reproduction of the contents of this proposal, whether in whole or in part, is expressly forbidden. J & M Displays, Inc. requests that all information be safeguarded from release pursuant to any request under the Freedom of Information Law of this state or any other state or jurisdiction; as it may cause competitive disadvantage to our company. The enclosed concepts and materials are the sole and exclusive property of J & M Displays, Inc. We reserve the right to make substitutions of equal or greater value. Prices and specifications are subject to change without notice. Shell Summary: Q enin Diameter Shell 2.5" 10 Opening Shell count 10 Main Event Diameter Shell 0" 0 3" 290 =<''� 4" 202 !` 5" 10 Main Event Shell count 502 Finales Diameter Shell 2.5" 120 3" 50 (CSO 4" 56 Finales Shell count 226 Free 15% for Multiple Year Agreement Diameter Shell 3" 110 4" 9 Free 15% for Multiple Year Agreement Shell count 119 Proposal number: 35455 Total shell 857 Designed 9/15/2016 Printed 9/15/2016 Page 3 of 3 www.jandmdisplays.com J&M Displays Insurance Requirements Insurance Requirements for Contractor The Contractor shall take out and maintain during the life of this Agreement, insurance coverage as listed below. These insurance policies shall protect Contractor and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Contractor's operations under this Agreement, whether such operations be by Contractor, or by any subcontractor, or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: 1. COMPREHENSIVE GENERAL LIABILITY $5,000,000 Each Occurrence $10,000,000 General Aggregate 2. COMPREHENSIVE AUTOMOBILE LIABILITY $2,000,000 Combined Single Limit Such insurance shall cover liability arising out of any vehicle (including, owned, hired and non -hired vehicles) operated in performing any and all services pursuant to this Agreement. Coverage shall be written on ISO form CA 00 01 12 90, or a later version, that provides liability coverage at least as broad as this form. All limits are to be designated strictly for the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. All deductibles or self-insured retentions (SIR) must be disclosed to City's Risk Manager for approval and shall not reduce the limits of liability set forth hereinabove. Insurance policies containing any deductible or SIR provision shall provide, or be endorsed to provide, that the deductible or SIR may be satisfied by either the Named Insured(s) or the City of Lodi. It is required that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth above, shall be available to City as an additional insured. Furthermore, the requirements for coverage and limits shall be (i) the minimum coverage and limits specified in these insurance requirements; or (ii) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the Contractor; whichever is greater. Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). A copy of the certificate(s) of insurance with the following endorsements shall be furnished to the City: (a) Additional Named Insured Endorsement Pursuant to a separate endorsement (ISO form CG 2010 (11/85) or a later version, that provides liability coverage at least as broad as this form) such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers as additional named insureds. An additional named insured endorsement is also required for Auto Liability. (b) Primary and Non -Contributory Insurance Endorsement Additional insurance coverage under the Contractor's policy shall be "primary and non-contributory" and will not seek contribution from City's insurance or self-insurance and shall be at least as broad as ISO form CG 20 01 04 13. NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of the proiect that it is insuring. (c) Waiver of Subrogation Include a waiver of subrogation against the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. A waiver is required for General Liability and Auto Liability. (d) Limits of Coverage The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance of Contractor shall contain, or be endorsed to contain, a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect the City as a named insured. Page 1 I of 2 pages Risk: rev.03.2016 Insurance Requirements for Contractor (continued) (e) Severability of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. (f) Notice of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. (g) Continuity of Coverage All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual basis during the Term. If Contractor's insurance lapses or is discontinued for any reason, Contractor shall immediately notify the City and immediately obtain replacement insurance. (h) Failure to Comply If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days of payment stating the amount paid, the names) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (1S) day of the month following the City's notice. Notwithstanding any other provision of this Agreement, if Contractor fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. (i) Qualified Insurer(s) All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. Workers Compensation insurance The Contractor shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all of Contractor's employees employed at the site of the project and, if any work is sublet, Contractor shall require the subcontractor similarly to provide Worker's Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Contractor. In case any class of employees engaged in hazardous work under this Agreement at the site of the project is not protected under the Worker's Compensation Statute, the Contractor shall provide and shall cause each subcontractor to provide insurance for the protection of said employees. A waiver of subrogation is required for workers compensation insurance. This policy may not be canceled nor the coverage reduced without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. NOTE: The City reserves the right to obtain a full certified copy of any insurance policy or endorsements required. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. Page 21 of 2 pages Risk: rev.03 2016 RESOLUTION NO. 2017-92 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT WITH J&M DISPLAYS, INC., FOR 2017 AND 2018 FOURTH OF JULY FIREWORKS SHOWS AT LODI LAKE PARK, WITH ONE TWO-YEAR EXTENSION IF IN THE BEST INTEREST OF THE CITY, FOR A TOTAL NOT -TO -EXCEED AMOUNT OF $64,000 WHEREAS, on March 30, 2015, City staff provided bid packets to prospective firework show providers; and WHEREAS, prospective show providers are responsible for providing the labor, materials, product, and one onsite licensed fireworks technician to provide and perform a minimum of an 18 -minute firework show on the water at Lodi Lake Park; and WHEREAS, staff received two bids, but only J&M Displays, Inc., agreed to meet all the City's requirements; and WHEREAS, J&M Displays, Inc., has been the provider of the fireworks shows at Lodi Lake for the past several years and has been responsive to our planning and load -in and load -out schedules; and WHEREAS, the past firework shows have been performed with safety being the upmost priority and has been well-received by the viewers; and WHEREAS, the contract includes the 2017 and 2018 fireworks shows on the Fourth of July, with an option to extend the term for two additional years if in the best interest of the City to do so, in an amount not to exceed $16,000 per year or $64,000 for all four years. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute the contract with J&M Displays, Inc., for 2017 and 2018 fireworks shows on the Fourth of July, with an option to extend the term for two (2) additional years if in the best interest of the City to do so, in an amount not to exceed $16,000 per year or $64,000 for all four years. Dated: May 17, 2017 hereby certify that Resolution No. 2017-92 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 17, 2017, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Chandler and Mounce ABSTAIN: COUNCIL MEMBERS — None NIFER 1. FERRAIOLO City Clerk 2017-92