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HomeMy WebLinkAboutAgreement - Pyro Spectaculars North, Inc. - Signed 2026-05-04City of Gilroy Agreement/Contract Tracking Today’s Date: May 4, 2026 Your Name: Adam Henig Contract Type: Other (Non-Standard contracts must be reviewed by the City Administrator prior to initiating) Phone Number: 408-846-0577 Contract Effective Date: (Date contract goes into effect) 5/7/2026 Contract Expiration Date: 12/31/2028 Contractor / Consultant Name: (if an individual’s name, format as last name, first name) Pyro Spectaculars North, Inc. Contract Subject: (no more than 100 characters) Agreement to display annual 4th of July Fireworks Show Contract Amount: (Total Amount of contract. If no amount, leave blank) 87000 By submitting this form, I confirm this information is complete: ➢ Date of Contract ➢ Contractor/Consultant name and complete address ➢ Terms of the agreement (start date, completion date or “until project completion”, cap of compensation to be paid) ➢ Scope of Services, Terms of Payment, Milestone Schedule and exhibit(s) attached ➢ Taxpayer ID or Social Security # and Contractors License # if applicable ➢ Contractor/Consultant signer’s name and title ➢ City Administrator or Department Head Name, City Clerk (Attest), City Attorney (Approved as to Form) Routing Steps for Electronic Signature Risk Manager City Attorney Approval As to Form City Administrator or Department Head City Clerk Attestation Docusign Envelope ID: 323B7B1B-D6BE-8D6C-82CB-6AF31EA27CA0 CONSULTANT CITY OF GILROY Pyro Spectaculars North, Inc. PROGRAM # A, Rev. # 4 5301 Lang Avenue July 4, 2026, 2027 & 2028 McClellan, CA 95652 Page 1 of 7 (909) 355-8120 fax (909) 355-9813 FIREWORKS PRODUCTION AGREEMENT (Special) This agreement (“Agreement”) is made this 4 day of May, 2026 by and between Pyro Spectaculars North, Inc., a California corporation, hereinafter referred to as “Consultant”, and City of Gilroy, hereinafter referred to as “CITY”. CONSULTANT and CITY are sometimes referred to as “Party” or collectively as “Parties” herein. 1. Engagement – CITY hereby engages CONSULTANT to provide to CITY one fireworks production (“Production”), and CONSULTANT accepts such engagement upon all of the promises, terms and conditions hereinafter set forth. The Production shall be substantially as outlined in the Scope of Work, (“Scope of Work”), attached hereto, incorporated herein by this reference, and made a part of this Agreement as though set forth fully herein. 1.1 CONSULTANT Duties – CONSULTANT shall provide all pyrotechnic equipment, trained pyrotechnicians, shipping, pyrotechnic products, application for specific pyrotechnic permits, the cost of which, including standby fees, relating to the Production shall be paid by CITY. Insurance covering the Production and the other things to be performed as more specifically set forth in this Agreement and in the Scope of Work shall be paid by CONSULTANT. 1.2 CITY Duties – CITY shall provide to CONSULTANT a suitable site (“Site”) for the Production, security for the Site as set forth in Paragraph 6 hereof, access to the Site, any permission necessary to utilize the Site for the Production, and the other things on its part to be performed as more specifically set forth below in this Agreement and in the Scope of Work. All Site arrangements are subject to CONSULTANT’s reasonable approval as to pyrotechnic safety, suitability, and security. All other conditions of the Site shall be the responsibility of CITY, including, but not limited to, access, use, control, parking and general safety with respect to the public, CITY personnel and other contractors. 2. Time and Place – The Production shall take place on July 4, 2026, 2027 and 2028, at approximately 9:30 PM, at Ball Field-Gilroy High School, 10th and Princevalle Street, Gilroy, CA or another Gilroy City site approved by the City of Gilroy and Pyro Spectaculars North, Inc. 3.Fees, Interest, and Expenses – 3.1 Fee – CITY agrees to pay CONSULTANT a fee of $27,000.00 for the Production. CITY shall pay to CONSULTANT $13,500.00 of the Fee plus estimated permit and standby fees, specified production costs, and other regulatory costs approximated at $00.00, for a total of $13,500.00, as a deposit (“Deposit”) upon the execution of this Agreement by both parties but no later than June 1, 2026. The remainder of the Fee shall be paid to CONSULTANT within 10 days after the Production and upon CONSULTANT’s completion of take down and restoration of the Site. PSNI Revised 202603013 4837-9520-6168v1 MVAKHARIA\04706083 Docusign Envelope ID: 323B7B1B-D6BE-8D6C-82CB-6AF31EA27CA0 CONSULTANT CITY OF GILROY Pyro Spectaculars North, Inc. PROGRAM # A, Rev. # 4 5301 Lang Avenue July 4, 2026, 2027 & 2028 McClellan, CA 95652 Page 2 of 7 (909)355-8120 fax (909) 355-9813 PSNI Revised 202603013 4837-9520-6168v1 MVAKHARIA\04706083 Year Consultant Fee Deposit Deposit Due Date Balance Due 2027 $29,000.00 $14,500.00 April 1, 2027 *$14,500.00 2028 $31,000.00 $15,500.00 April 3, 2028 *$15,500.00 3.2 Attorneys’ Fees –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 reasonable attorneys’ fees. 3.3 Expenses – CONSULTANT shall pay all normal expenses directly related to the Production including freight, insurance, pyrotechnic products, pyrotechnic equipment, experienced pyrotechnic personnel to set up and discharge the pyrotechnics and those additional items as outlined as CONSULTANT’s responsibility in the Scope of Work. CITY shall pay all costs related to the Production not supplied by CONSULTANT, which are enumerated as CITY’s responsibility in this Agreement and Scope of Work. (See paragraph 1.2.) 4.Proprietary Rights – CONSULTANT represents and warrants that it owns all copyrights, including performance rights, to this Production, except that CONSULTANT does not own CITY-owned material or third-party-owned material that has been included in the Production, and as to such CITY-owned and third-party-owned material, CITY assumes full responsibility therefore. CITY agrees that CONSULTANT shall retain ownership of all copyrights and other rights to the Production, except that CONSULTANT shall not acquire or retain any ownership or other rights in or to CITY-owned material and third-party-owned material and shall not be responsible in any way for such material. If applicable, CITY consents to the use of CITY-owned material and 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. CONSULTANT reserves the ownership rights in its trade names that are used in or are a product of the Production. Any reproduction by sound, video or other duplication or recording process without the express written permission of CONSULTANT is prohibited. 5.Safety – CONSULTANT shall comply with 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 CONSULTANT’s sole discretion to determine whether or not the Production may be safely discharged or continued. It shall not constitute a breach of this Agreement by CONSULTANT for fireworks to fail or malfunction, or for CONSULTANT 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 CONSULTANT. 6.Security – CITY shall provide adequate security personnel, barricades, and Police Department services as may be necessary to preclude individuals other than those authorized by Docusign Envelope ID: 323B7B1B-D6BE-8D6C-82CB-6AF31EA27CA0 CONSULTANT CITY OF GILROY Pyro Spectaculars North, Inc. PROGRAM # A, Rev. # 4 5301 Lang Avenue July 4, 2026, 2027 & 2028 McClellan, CA 95652 Page 3 of 7 (909) 355-8120 fax (909) 355-9813 PSNI Revised 202603013 4837-9520-6168v1 MVAKHARIA\04706083 CONSULTANT from entering an area to be designated by CONSULTANT as the area for the set- up and discharge of the Production, including a fallout area satisfactory to CONSULTANT where the pyrotechnics may safely rise and any debris may safely fall. CONSULTANT shall have no responsibility for monitoring or controlling CITY’s other contractors, providers or volunteers, or areas to which the public or contractors have access; or any other public or contractor facilities associated with the Production. 7. Clean-up – CONSULTANT shall be responsible for the removal of all equipment provided by CONSULTANT and clean-up of any used live pyrotechnic debris made necessary by the Production. 8. Permits – CONSULTANT agrees to apply for and acquire all legally required permits for the firing of pyrotechnics from agencies including but not limited to the Gilroy Fire Department, FAA, and USCG. CITY shall be responsible for any fees associated with these permits including standby fees. CITY shall be responsible for obtaining any other necessary permits, paying associated fees, and making other appropriate arrangements for Police Departments, other Fire Departments, road closures, event/activity or land use permits or any permission or permit required by any Local, Regional, State of Federal Government. 9. Insurance – CONSULTANT shall at all times during the performance of services herein ensure that the following insurance is maintained by CONSULTANT at its sole cost in connection with CONSULTANT’s performance of this Agreement: (1) commercial general liability insurance, including products, completed operations, and contractual liability under this Agreement; (2) automobile liability insurance, (3) workers’ compensation insurance and employer liability insurance. Such insurance is to protect CITY from any claims arising out of CONSULTANT’s performance of this Agreement for bodily injury, including death, personal injury, and from claims of property damage, which may arise from CONSULTANT’s performance of this Agreement. The types and amounts of coverage shall be as set forth in the Scope of Work. Such insurance shall not include claims which arise from CITY’s negligence or willful misconduct or from failure of CITY to perform its obligations under this Agreement, coverage for which shall be provided by CITY. The coverage of these policies shall be subject to inspection by CITY. Certificates of Insurance evidencing the required general liability coverage shall be furnished to CITY prior to the rendering of services hereunder and shall include that the following are named as additionally insured: CITY; Sponsors, Landowners, Barge Owners, if any; and Permitting Authorities, with respect to the operations of CONSULTANT at the Production. Pyrotechnic subcontractors or providers, if any, not covered under policies of insurance required hereby, shall secure, maintain and provide their own insurance coverage with respect to their respective operations and services. 10. Indemnification – CONSULTANT represents and warrants that it is capable of furnishing the necessary experience, personnel, equipment, materials, providers, and expertise to produce the Production in a safe and professional manner. Notwithstanding anything in this Agreement to the contrary, CONSULTANT shall indemnify, hold harmless, and defend CITY and the additional insureds from and against any and all claims, actions, damages, liabilities and expenses, Docusign Envelope ID: 323B7B1B-D6BE-8D6C-82CB-6AF31EA27CA0 CONSULTANT CITY OF GILROY Pyro Spectaculars North, Inc. PROGRAM # A, Rev. # 4 5301 Lang Avenue July 4, 2026, 2027 & 2028 McClellan, CA 95652 Page 4 of 7 (909) 355-8120 fax (909) 355-9813 PSNI Revised 202603013 4837-9520-6168v1 MVAKHARIA\04706083 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 CONSULTANT, their officers, agents, contractors, providers, or employees. In no event shall either party be liable for the consequential damages of the other party. 11. Limitation of Damages for Ordinary Breach – Except in the case of bodily injury and property damage as provided in the insurance and indemnification provisions of Paragraphs 9 and 10, above, in the event CITY claims that CONSULTANT has breached this Agreement or was otherwise negligent in performing the Production provided for herein, CITY shall not be entitled to claim or recover monetary damages from CONSULTANT beyond the amount CITY has paid to CONSULTANT under this Agreement, and shall not be entitled to claim or recover any consequential damages from CONSULTANT including, without limitation, damages for loss of income, business or profits. 12. Force Majeure – CITY agrees to assume the risks of weather, strike, civil unrest, terrorism, military action, governmental action, and any other causes beyond the control of CONSULTANT which may prevent the Production from being safely discharged on the scheduled date, which may cause the cancellation of any event for which CITY has purchased the Production. If, for any such reason, CONSULTANT is not reasonably able to safely discharge the Production on the scheduled date, or at the scheduled time, or should any event for which CITY has purchased the Production be canceled as a result of such causes, CITY may (i) reschedule the Production and pay CONSULTANT such sums as provided in Paragraph 13, or (ii) cancel the Production and pay CONSULTANT such sums as provided in Paragraph 14, based upon when the Production is canceled. In no event shall CONSULTANT proceed with the Production unless CONSULTANT can conduct its obligations safely. 13. Rescheduling Of Event – If CITY elects to reschedule the Production, CONSULTANT shall be paid the original Fee plus all additional expenses made necessary by rescheduling plus a 15% service fee on such additional expenses. Said expenses will be invoiced separately and payment will be due in full within 5 days of receipt. In no event shall the applicable fees and expenses exceed $ 2,500.00. CITY and CONSULTANT shall agree upon the rescheduled date taking into consideration availability of permits, materials, equipment, transportation and labor. The Production shall be rescheduled for a date not more than 90 days subsequent to the date first set for the Production. The Production shall not be rescheduled between June 15th and July 15th unless the original date was July 4th of that same year, or between December 15th and January 15th unless the original date was December 31st of the earlier year unless CONSULTANT agrees that such rescheduling will not adversely affect normal business operations during those periods. 14. Right to Cancel – CITY shall have the option to unilaterally cancel the Production prior to the scheduled time. If CITY exercises this option, CITY agrees to pay a termination fee which shall be calculated based on the following percentages of the Fee as set forth in Paragraph 3.1: Docusign Envelope ID: 323B7B1B-D6BE-8D6C-82CB-6AF31EA27CA0 CONSULTANT CITY OF GILROY Pyro Spectaculars North, Inc. PROGRAM # A, Rev. # 4 5301 Lang Avenue July 4, 2026, 2027 & 2028 McClellan, CA 95652 Page 5 of 7 (909) 355-8120 fax (909) 355-9813 PSNI Revised 202603013 4837-9520-6168v1 MVAKHARIA\04706083 1) 50% if cancellation occurs 30 to 90 days prior to the scheduled date, 2) 75% if cancellation occurs 15 to 29 days prior to the scheduled date, 3) 100% thereafter. In the event CITY cancels the Production, it will be impractical or extremely difficult to fix the actual amount of CONSULTANT’S damages. The foregoing represents a reasonable estimate of the damages CONSULTANT will suffer if CITY cancels the Production. 15. No Joint Venture – It is agreed that nothing in this Agreement or in CONSULTANT’S performance of the Production shall be construed as forming a partnership or joint venture between CITY and CONSULTANT. CONSULTANT shall be and is an independent contractor with CITY and not an employee of CITY. 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. 16. Applicable Law – This Agreement and the rights and obligations of the Parties hereunder shall be construed in accordance with the laws of California. In the event that the scope of the Production is reduced by authorities having jurisdiction or by either Party for safety concerns, the full dollar amounts outlined in this Agreement are enforceable. 17. Notices – Any Notice to the Parties permitted or required under this Agreement may be given by mailing such Notice in the United States Mail, postage prepaid, first class, addressed as follows: CONSULTANT: CITY: Pyro Spectaculars North, Inc. City of Gilroy 3196 N. Locust Avenue 7351 Rosanna Street Rialto, CA 92377 Gilroy, CA 95020 18. Modification of Terms – All terms of the Agreement are contained herein 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. 19. Effective Date – This Agreement shall become effective after it is executed by CONSULTANT and thereafter on the date it is executed and accepted by CITY. This Agreement may be executed in counterparts, including faxed and emailed copies, each one of which shall be deemed an original against the Party executing same. This Agreement shall be binding upon the Parties hereto and upon their heirs, successors, executors, administrators, and assigns. Docusign Envelope ID: 323B7B1B-D6BE-8D6C-82CB-6AF31EA27CA0 CONSULTANT CITY OF GILROY Pyro Spectaculars North, Inc. PROGRAM # A, Rev. # 4 5301 Lang Avenue July 4, 2026, 2027 & 2028 McClellan, CA 95652 Page 6 of 7 (909) 355-8120 fax (909) 355-9813 PSNI Revised 202603013 4837-9520-6168v1 MVAKHARIA\04706083 20. Assignment – CONSULTANT may not assign this agreement or any right or obligation of this agreement, by operation of law or otherwise, without prior written consent of the CITY. CONSULTANT CITY OF GILROY By: By: Its: Matthew Gilfillan, Vice President Authorized Officer Its: City Administrator Date: Date: Approved as to Form: Gilroy City Attorney’s Office ATTEST: By: City Attorney City Clerk 3/16/26 Docusign Envelope ID: 323B7B1B-D6BE-8D6C-82CB-6AF31EA27CA0 5/13/2026 CONSULTANT CITY OF GILROY Pyro Spectaculars North, Inc. PROGRAM # A, Rev. # 4 5301 Lang Avenue July 4, 2026, 2027 & 2028 McClellan, CA 95652 Page 7 of 7 (909) 355-8120 fax (909) 355-9813 PSNI Revised 202603013 4837-9520-6168v1 MVAKHARIA\04706083 SCOPE OF WORK CONSULTANT and CITY OF GILROY (“CITY”) CONSULTANT shall provide the following goods and services to CITY: • One CONSULTANT, Production on July 4, 2026, July 4, 2027 and July 4, 2028, at approximately 9:30 PM at Ball Field-Gilroy High School, 10th and Princevalle Street, Gilroy, CA. • All pyrotechnic equipment, trained pyrotechnicians, shipping, and pyrotechnic product. • Application for specific pyrotechnic permits relating to the Production. • Insurance covering the Production as set forth in the Agreement with the following limits: Insurance Requirements Limits Commercial General Liability $5,000,000.00 Combined Single Limit – Each Occurrence (Bodily Injury & Property Damage) Business Auto Liability- Owned, Non-Owned and Hired Autos $5,000,000.00 Combined Single Limit – Each Occurrence (Bodily Injury & Property :Damage) Workers’ Compensation Statutory Employer Liability $1,000,000 Per Occurrence CLIENT shall provide to CONSULTANT the following goods and services: • All on-site labor costs not necessary for the fireworks production itself and not provided or performed by CONSULTANT personnel including, but not limited to, all Site security, Police and Fire Dept. standby personnel, stagehands, electricians, audio and fire control monitors, carpenters, plumbers, and clean-up crew, except for the clean-up as set forth in Paragraph 7. All these additional personnel and services shall be fully insured and the sole responsibility of CLIENT. • Coordination and any applicable non-pyrotechnic permitting with the local, state or federal government that may have authority over the Production. • Costs of all permits required for the presentation of the Production and the event as a whole. • Provision of a Safety Zone in accordance with applicable standards and all requirements of the authorities having jurisdiction throughout the entire time that the pyrotechnics are at the Site or the load site (if different) on the date of the Production and all set-up and load-out dates, including water security to keep unauthorized people, boats, etc. from entering the Safety Zone. • General Services including, but not limited to, Site and audience security, fencing, adequate work light, dumpster accessibility, a secure office for CONSULTANT’S personnel within the venue, secure parking for CONSULTANT vehicles, access to washrooms, tents, equipment storage, hazmat storage, electrical power, fire suppression equipment, access to worksites, necessary credentialing, etc., will be required as necessary. Docusign Envelope ID: 323B7B1B-D6BE-8D6C-82CB-6AF31EA27CA0