1b. Award Bid, July 4th Fireworks Contract
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
WIfW.ci .chanhassen.mn. us
1b
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MEMORANDUM
TO:
Jerry Ruegemer, Recreation Superintendent
John W. Stutzman, Recreation Supervisor J 1v5
FROM:
DA TE:
o~
February 29,2008
SUBJ:
2008 Fourth of July Fireworks Contract
In preparing for the upcoming Fourth of July Celebration, our department solicited quotes
for the 2008 fireworks show. We received quotes from Hollywood Pyrotechnics Inc. and
Melrose Pyrotechnics. Both companies prepared and submitted the necessary quote
information and returned it by the established due date.
After reviewing both quotes, it was apparent both companies met the specifications and
are offering quality and unique shows with an opening body, main body, and grand
finale. A point worth noting is that Melrose offers a unique feature-a mid-show barrage
and a pre-finale teaser and, due to Melrose's familiarity with this event, they have offered
to do a special 25th anniversary shell prior to the grand finale. Additionally, Melrose is
willing to accommodate our setup schedule on July 4th and are also in full agreement with
our cancellation policy; whereas, Hollywood would like to see a larger settlement
package in this policy.
This year city staff has also asked both companies to submit multi-year proposals in
addition to a single-year proposal for 2008. After reviewing the proposals, both seem to
benefit the City. Each company also offers bonuses for each year of a multi-year
contract. In signing a three-year contract with Melrose, the city would receive a bonus of
$2,650 added to the third year of the contract.
The City of Chanhassen has contracted with Melrose Pyrotechnics for over
20 years. Staff is comfortable with the safety and quality of the products they provide.
Staff has also developed a great working relationship with the lead technician from
Melrose and, over the years, everyone's expectations have been met. This has saved the
city staff time and money by not having to go through setup and event details year after
year.
RECOMMENDA TION
It is staff's recommendation that the Park & Recreation Commission recommend the City
Council approve the Fourth of July Fireworks contract with Melrose Pyrotechnics in the
amount of $30,000. Furthermore, it is staff's recommendation that the Park & Recreation
Commission recommend the City Council approve a three-year contract for the Fourth of
July Fireworks with Melrose Pyrotechnics from 2008 through 2010 in the amount of
$30,000 in 2008, $23,000 in 2009, and $23,000 in 2010. The 2008 amount is included in
Fund 1600 of the budget, and the subsequent amounts wi II be budgeted in the same
location in the 2009 and 2010 budgets. The fireworks display will take place on Friday,
July 4 at 10 p.m. at Lake Ann Park.
The City of Chanhassen · A growing community with clean lakes, quality schools, a channing downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
STAFF UPDATE - (2-27-08)
The Park and Recreation Commission reviewed the Fourth of July Fireworks contract at
their February 26th meeting. After review, the Park and Recreation Commission
unanimously recommended that the City Council approve the 2008 contract from
Melrose Pyrotechnics in the amount of $30,000.
STAFF UPDATE - (2-29-08)
Upon further review, staff has established that when seeking "professional services"
contracts, such as fireworks, there are no financial limitations in accepting quotes. The
only requirement is that the same request for proposals be sent to multiple vendors. This
year's request for proposals was sent to Hollywood Pyrotechnics Inc. and Melrose
Pyrotechnics. It asked them to submit a quote for 2008 as well as a three-year contract
proposal through 2010, with dollar amounts in future years to be less than 2008. With no
bidding restrictions hindering a multi-year contract, it is staff's recommendation that the
Park and Recreation Commission recommend that the City Council approve a three-year
contract for the Fourth of July Fireworks with Melrose Pyrotechnics from 2008 through
2010 in the amount of $30,000 in 2008, $23,000 in 2009, and $23,000 in 2010. The 2008
amount is included in Fund 1600 of the budget, and the subsequent amounts will be
budgeted for in the same location in the 2009 and 2010 budgets.
STAFF UPDA TEl CITY COUNCIL RECOMMENDATION - (3-27-08)
The Park and Recreation Commission further reviewed the Fourth of July Fireworks
contract with the latest update, at their March 25th meeting. After review, the Park and
Recreation Commission unanimously recommended that the City Council approve the
Melrose Pyrotechnics three year contract for 2008 in the amount of $30,000, 2009 in the
amount of $23,000, and 2010 in the amount of $23,000.
MELROSE NORTH PYROTECHNICS, INC.
AGREEMENT
This contract entered into this 11th Day of Februarv AD 2008 by and between MELROSE NORTH
PYROTECHNICS, INC. of Clear Lake, MN and City of Cbanbassen (Customer) of City Cbanbassen State
Minnesota.
WITNESSETH: MELROSE NORTH PYROTECHNICS, INC. for and in consideration of the terms
hereinafter mentioned, agrees to furnish to the CUSTOMER 3-tbree Fireworks Display(s) as per agreement made
and accepted and made a part hereof, including the services of our Operator to take charge of and fire display under
the supervision and direction of the Customer, said display to be given on the evening of Julv 4. 2008.
2009. 2010 Customer Initial , weather permitting, it being understood that should inclement weather prevent
the giving of this display on the date mentioned herein the parties shall agree to a mutually convenient alternate date,
within six (6) months ofthe original display date. Customer shall remit to the first party an additional 15% of the
total contract price for additional expenses in presenting the display on an alternate date. The determination to cancel
the show because of inclement or unsafe weather conditions shall rest within the sole discretion of MELROSE
NORTH PYROTECHNICS, INC. In the event the customer does not choose to reschedule another date or cannot
agree to a mutually convenient date, MELROSE NORTH PYROTECHNICS, INC. shall be entitled to 40% of the
contract price for costs, damages and expenses. If the fireworks exhibition is canceled by CUSTOMER prior to the
display, CUSTOMER shall be responsible for and shall pay to MELROSE NORTH PYROTECHNICS, INC. on
demand, all MELROSE NORTH PYROTECHNICS, INC.ls out of pocket expenses incurred in preparation for the
show including but not limited to, material purchases, preparation and design costs, deposits, licenses and employee
charges. 5% BONUS FROM EACH OF THE FffiST TWO YEARS ADDED TO THE THmD YEAR AT NO
ADDITIONAL CHARGE.
MELROSE NORTH PYROTECHNICS, INC. agrees to furnish all necessary fireworks display materials and
personnel for a fireworks display in accordance with the program approved by the parties. Quantities and varieties of
products in the program are approximate. After final design, exact specifications will be supplied upon request.
It is further agreed and understood that the CUSTOMER is to pay MELROSE NORTH PYROTECHNICS,
INC. the sum of$ 76.000.00 (Seventy six tbousand and 00/100). A service fee of 1 Y2 % per month shall be added, if
account is not paid within 30 days of the show date. **Julv 4-08. $30.000.00. Julv 4. 2009 and 2010. $23.000.00
eacb year - Bonus will be f!iven tbe tbird year - $25.650.00 displav (City of Cbanbassen will pay $23.000.00 for
tbe displav)**
MELROSE NORTH PYROTECHNICS, INC. will obtain Public Liability and Property Damage and
Workers Compensation Insurance.
Customer will provide the following items:
(a) Sufficient area for the display, including a minimum spectator set back of 700 feet at
all points from the discharge area.
(b) Protection of the display area by roping-off or similar facility.
(c) Adequate police protection to prevent spectators from entering display area.
(d) Search of the fallout area at first light following a nighttime display.
It is further agreed and mutually understood that nothing in this contract shall be constructed or interpreted to
mean a partnership, both parties being hereto responsible for their separate and individual debts and obligations and
neither party shall be responsible for any agreements not stipulated in this contract. Customer agrees to pay any and
all collection costs, including reasonable attorneys fees and court costs incurred by MELROSE NORTH
PYROTECHNICS, INC. in the collection or attempted collections of any amount due under this agreement and
invoice.
The parties hereto do mutually and severally guarantee terms, conditions, and payments of this contract,
these articles to be binding upon the parties, themselves, their heirs, executors, administrators, successors and assigns.
=L~PCTE;Z::
Date Signed: Februarv 11. 2008
CUSTOMER
By
Its duly aUlborized agent. who represents be/sbc bas full authority 10 bind the customer.
Date Signed
(PLEASE TYPE OR PRINT)
Mark C. Hanson
9405 River Road SE
Clear Lake, MN 55319
(800) 771-7976
Name
Address
Phone
ADDENDUM
For City of Chanhassen, Minnesota
Fireworks 3-Year Contract 2008-2010
This contract shall automatically renew for the fourth of July
celebrations in 2009 and 2010 unless terminated by either party
giving the other party at least 120 days written notice, prior to the next
fourth of July celebration, of its decision to terminate this agreement.
Mr. Mark C. Hanson, Event Producer for Melrose Pyrotechnics, Inc. 3-3-08
Printed Name:
Title:
Date:
Signature: