City of Culver City, California
City Council Agenda Item Report
Meeting Date: 07/14/08 Item Number: C-7
AGENDA ITEM: Approval of the Final Year of a Three-Year Agreement with
Guadagno and Sons for Supplying the Carnival Rides at the 2008 Fiesta La Ballona.
Contact Person/Dept.: Pam Robinson,
Acting Recreation Manager
Phone Number: (310) 253-6632
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification: Fiesta La Ballona Committee (07/09/08); Guadagno and Sons
(07/14/08); Master Notification List (07/09/08).
Department Approval:
Bill La Pointe, (07/03/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (07/09/08)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (07/09/08)
City Manager Approval:
Jerry B. Fulwood (07/09/08)
RECOMMENDATION:
Staff recommends the City Council approve the final year of a three (3) year
agreement with Guadagno and Sons for supplying the carnival rides at the 2008
Fiesta La Ballona.
BACKGROUND:
The Fiesta la Ballona (Fiesta) began in 1951 as a week long festival in honor of the
City’s heritage. The Fiesta is a celebration with events that evoke pride and remind
residents of Culver City’s impressive past while enhancing a sense of community.
In 2004 the Fiesta La Ballona Committee (Committee) contracted with Guadagno
and Sons (G&S) to supply carnival rides during the Fiesta in order to attract families
to the event. This has been a very successful addition to the Fiesta and has
increased attendance as well as revenue to the vendors and to the City which in turn
helps to offset the cost of producing the Fiesta. After the 2005 Fiesta, the
Committee agreed that G&S should come back for the next three (3) years, through
2008 due to their entertainment value and their commitment to the success of the
Fiesta.
DISCUSSION:
Attachment 1 is a copy of Agreement #2008-052 between the City and G&S. A few
of the details of the agreement, particularly with regard to the profit sharing with the
City include; City of Culver City, California
City Council Agenda Item Report
A. Fifteen percent (15%) of the first Fifteen Thousand Dollars ($15,000) of Ride
Gross;
B. Twenty percent (20%) of the second Fifteen Thousand Dollars ($15,000) of Ride
Gross; and
C. Twenty-Five percent (25%) of balance of Ride Gross.
In addition, the agreement requires a sharing of their food concession and game
revenue. These percentages are unchanged from the percentages paid to G&S for
the 2007 Fiesta.
The agreement states that the City is responsible for the sale of ride tickets and
collection of monies for those tickets. The portion of the revenue owed to G&S, less
a ten-thousand dollar ($10,000) down payment paid upon their arrival the week
before the Fiesta, is paid after the conclusion of the Fiesta and after an accounting
of the money has been completed by the City.
There is only one difference between the 2007 and 2008 Schedule of Compensation
and that is the addition of paragraph 7 on page 2 of 2 titled “Donation to Fiesta”.
This paragraph reads that “At the conclusion of the Fiesta, and after all payments
have been made, contractor shall donate a total of one-thousand dollars ($1,000) to
the City to be used for the 2009 Fiesta La Ballona.” This donation to the Fiesta was
negotiated by the Committee Chair and will be paid to the City after G&S has
received their final payment.
As this is the final year of a three (3) year agreement, it is staff’s intention to go out
to bid for these services prior to the 2009 Fiesta.
FISCAL ANALYSIS:
The ten-thousand dollar ($10,000) down payment is anticipated when the budget for
the Fiesta is prepared, and this amount is included in the Parks, Recreation &
Community Services 2008/2009 adopted budget. This amount is then deducted
from the final payment which is made from the revenues derived from the Fiesta
carnival.
In 2007, gross revenues from carnival ride tickets and concession sales were a total
of seventy-seven thousand, eight-hundred and seventy-two dollars ($77,872). Per
the City’s agreement, the balance due G&S after the deduction of the ten-thousand
dollar ($10,000) down payment was forty-nine thousand, six-hundred and fifty-four
dollars ($49,654). This left eighteen-thousand, two-hundred and eighteen dollars
($18,218) as the City’s net revenue from the 2007 Fiesta carnival. The Fiesta
Committee hopes to match or perhaps even surpass this amount at the 2008 Fiesta.
City of Culver City, California
City Council Agenda Item Report
ATTACHMENTS:
1. Copy of Agreement #2008-052 between the City and Guadagno & Sons.
MOTION:
That the City Council:
1. Approve the final year of a three-year agreement with Guadagno and Sons
for supplying the carnival rides for the 2008 Fiesta La Ballona; and
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.
.
MEETING DATE: July 14, 2008
AGENDA ITEM: Authorization to Pay Guadagno and Sons a Down
Payment and a Final Percentage of Ticket Sales for
Supplying the Carnival Rides at the 2008 Fiesta La
Ballona.
ATTACHMENTS
Page
1. Copy of Agreement #2008-052 between the City and 1-9
Guadagno & SonsContract No. 2008-052
CITY OF CULVER CITY
STANDARD FORM CONTRACT
WITH: GUADAGNO & SONS AMUSEMENTS
FOR: AMUSEMENT RIDES AT FIESTA LA BALLONA
THIS AGREEMENT is made and entered into by and between THE CITY OF
CULVER CITY, a municipal corporation, hereinafter referred to as "CITY", and
TONY GUADAGNO dba GUADAGNO & SONS AMUSEMENTS, INC., a
California corporation, hereinafter referred to as "CONTRACTOR".
1. CONTRACTOR'S SERVICES. Contractor agrees to perform, during the
term of this Agreement, the tasks, obligations, and services set forth in the
"Scope of Service" attached to and incorporated into this Agreement as
Exhibit "A".
2. TERM OF AGREEMENT. The term of this Agreement shall be from the
effective date pursuant to Paragraph 27 of this Agreement and shall end
upon Wednesday, August 27, 2008.
3. REVENUES. Pursuant to the terms of this Agreement, the compensation
is set forth in the "Schedule of Compensation" attached to and
incorporated into this Agreement as Exhibit "B". The compensation shall
be paid at the time and manner set forth in said Exhibit "B".
4. TIME FOR PERFORMANCE. Contractor shall not perform any work
under this Agreement until (a) Contractor furnishes proof of insurance as
required under Paragraph 7 of this Agreement; and, (b) City gives
Contractor a written and signed Notice to Proceed.
5. DESIGNATED REPRESENTATIVE(S)
Tony Guadagno shall be the designated Contractor Representative, and
shall be responsible for job performance, negotiations, contractual
matters, and coordination with the City. Contractor's professional services
shall be actually performed by, or shall be immediately supervised by, the
Contractor Representative.
6. HOLD HARMLESS. Contractor shall be responsible for any and all
injuries to or death of any person, and for any and all damage to any and
all real or personal property including City's or others, caused by or
resulting from any acts, errors or omission of Contractor, its employees or
its agents arising out of or connected with rendition of services hereunder.
Contractor shall defend, hold harmless and indemnify City and its officers
and employees from any and all liability claims, including costs, for
damages to real or personal property, or personal injury or death, resulting
Page 1from Contractor's, its employees or agent's acts, errors or omissions
arising out of or connected with rendition of services hereunder.
7 INSURANCE. Without limiting its obligations pursuant to Paragraph 6 of
this Agreement, Contractor shall submit one or more duly executed
certificates of insurance for Comprehensive General Liability in the
minimum amount of One Million Dollars ($1,000,000) single limit coverage
(endorsed by an endorsement, approved by the City Attorney),
Automobile Liability in the minimum amount of $500,000/$500,000 and
Workers Compensation insurance in statutorily required amounts.
8. INDEPENDENT CONTRACTOR STATUS. City and Contractor agree
that Contractor, in performing the services herein specified, shall act as an
independent Contractor and shall have control of all work and the manner
in which it is performed. Contractor shall be free to contract for similar
service to be performed for other employers while under contract with
City. Contractor is not an agent or employee of City, and is not entitled to
participate in any pension plan, insurance, bonus or similar benefits City
provides for its employees. Contractor shall be responsible to pay and
hold City harmless from any and all payroll and other taxes and interest
thereon and penalties therefor which may become due as a result of
services performed hereunder.
9. NON-APPROPRIATION OF FUNDS. Payment due and payable to
Contractor for current services are within the current budget and within an
available, unexhausted and unencumbered appropriation of the City. In
the event City has not appropriated sufficient funds for payment of
Contractor services beyond the current fiscal year, this Agreement shall
cover only those costs incurred up to the conclusion of the current fiscal
year.
10. ASSIGNMENT. This Agreement is for the specific services with
Contractor as set forth herein. Any attempt by Contractor to assign the
benefits or burdens of this Agreement without written approval of City
shall be prohibited and shall be null and void; except that Contractor may
assign payments due under this Agreement to a financial institution.
11. RECORDS AND INSPECTIONS. Contractor shall maintain full and
accurate records with respect to all services and matters covered under
this Agreement. City shall have free access at all reasonable times to
such records, and the right to examine and audit the same and to make
transcripts therefrom, and to inspect all program data, documents,
proceedings and activities. Contractor shall maintain an up-to-date list of
key personnel and telephone numbers for emergency contact after normal
business hours.
12. RESERVED.
Page 2
/I13. NOTICES. All notices given or required to be given pursuant to this
Agreement shall be in writing and may be given by personal delivery or by
mail. Notice sent by mail shall be addressed as follows:
To City:
To Contractor:
City of Culver City
Attention: Pam Robinson
4117 Overland Avenue
Culver City, California 90230
Guadagno & Sons Amusements
Attention: Tony Guadagno
12872 Valley View St. #7B
Garden Grove, CA 92845
14. TAXPAYER IDENTIFICATION NUMBER. Contractor shall provide City
with a complete Request for Taxpayer Identification Number ("TIN") and
Certification, Form W-9, as issued by the Internal Revenue Service.
Contractor's Tax Identification Number is
15. PERMITS AND LICENSES. Contractor, at its sole expense, shall obtain
and maintain during the term of this Agreement, all appropriate permits,
licenses, and certificates that may be required in connection with the
performance of services under this Agreement, including, but not limited
to, a Culver City business tax certificate.
16. APPLICABLE LAWS, CODES AND REGULATIONS. Contractor shall
perform all work in accordance with all applicable laws, codes and
regulations required by all authorities having jurisdiction over such work.
Contractor agrees to comply with prevailing wage requirements as
specified in the California Labor Code, Sections 1770, et seq.
17. PURCHASES OF SUPPLIES AND MATERIALS WITHIN CULVER CITY.
For work performed, Contractor agrees to seek bids for supplies and
materials from businesses located within the City of Culver City, with the
intent to make purchases from these businesses if such purchases can be
made at competitive prices.
18. RIGHT TO UTILIZE OTHERS. City reserves the right to utilize others to
perform work similar to the services provided hereunder.
19. MODIFICATION OF AGREEMENT. This Agreement may not be
modified, nor may any of the terms, provisions or conditions be modified
or waived or otherwise affected, except by a written amendment signed by
all parties hereto.
20. WAIVER. If at any time one party shall waive any term, provision or
condition of this Agreement, either before or after any breach thereof, no
party shall thereafter be deemed to have consented to any future failure of
full performance hereunder.
Page 321. COVENANTS AND CONDITIONS. Each term and each provision of this
Agreement to be performed by Contractor shall be construed to be both a
covenant and a condition.
22. RIGHT TO TERMINATE. City may terminate this Agreement at any time,
with or without cause, in its sole discretion, with thirty-days' (30-days')
written notice.
23. EFFECT OF TERMINATION. Upon termination as stated in Paragraph
22 of this Agreement, City shall be liable to Contractor only for work
satisfactorily performed by Contractor up to and including the date of
termination of this Agreement, unless the termination is for cause, in
which event Contractor need be compensated only to the extent required
by law. Contractor shall be entitled to payment for services satisfactorily
completed to date, based on the compensation set forth in Exhibit "B"
attached hereto. Such payment will be subject to City's receipt of a close-
out billing.
24. GOVERNING LAW. The terms of this Agreement shall be interpreted
according to the laws of the State of California. If litigation arises out of
this Agreement, then venue shall be in the Superior Court of Los Angeles
County.
25. LITIGATION FEES. If litigation arises out of this Agreement for the
performance thereof, then the court shall award costs and expenses,
including attorney's fees, to the prevailing party. In awarding attorney's
fees, the court shall not be bound by any court fee schedule but shall
award the full amount of costs, expenses and attorney's fees paid or
incurred in good faith.
26. INTEGRATED AGREEMENT. This Agreement represents the entire
Agreement between City and Contractor, and all preliminary negotiations
and agreements are deemed a part of this Agreement. No verbal
agreement or implied covenant shall be held to vary the provisions of this
Agreement. This Agreement shall bind and inure to the benefit of the
parties to this Agreement, and any subsequent successors and assigns.
Page 427. EFFECTIVE DATE. The effective date of this Agreement is the date it is
signed on behalf of City, and shall remain in full force and effect until
amended or terminated; provided, that the indemnification and hold
harmless provisions shall survive the termination.
TONY GUADAGNO,
GUADAGNO & SONS AMUSEMENTS
Dated: By Its
CITY OF CULVER CITY, CALIFORNIA
Dated: By Jerry Fulwood
City Manager
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
William LaPointe
Parks, Recreation & Community
Services Director
Carol A. Schwab
City Attorney
APPROVED AS TO FINANCING: APPROVED AS TO BUSINESS
TAX CERTIFICATE:
Jeff Muir Treasury Division
Chief Financial Officer
Page 5Contract No. 2008-052
EXHIBIT A
CITY OF CULVER CITY
WITH: GUADAGNO & SONS AMUSEMENTS
FOR: AMUSEMENT RIDES AT FIESTA LA BALLONA
SCOPE OF SERVICE
In conjunction with City's Fiesta La Ballona celebration at Veteran's Park, Contractor
shall provide the following:
A. Amusement Rides:
1. Contractor agrees to provide the following amount of rides:
Six (6) major, six (6) kiddie and two (2) spectacular if space allows. This
count could change due to any governmental agency rules or regulations.
2. Contractor shall provide all wristbands and tickets for sale.
B. Hours of Operation:
Friday, August 22, 2008 hours of operation will be 6:00p.m. to 10:00p.m.
Saturday, August 23, 2008 hours of operation will be 12:00p.m. to 10:00p.m.
Sunday, August 24, 2008 hours of operation will be 12:00p.m. to 10:00p.m.
C. Midway Concessions:
1. Contractor will be allowed one food concession to include the sale of
popcorn, nachos, cotton candy, snow cones, fried burritos, corn dogs and
soft drinks.
2. Contractor will be allowed to set up game booths.
D. Facility Set Up by Contractor shall include:
1. Electric power for all show rides and concessions to be provided by
Contractor.
2. Clean up crew to clean up ride, concession and booth area each and
every night of the celebration will be provided by Contractor.
3. 100 posters imprinted to committee specifications provided by Contractor
and ordered by City by calling Colby Poster Company 213-747-5108.
4. Contractor's personnel shall be adequate to provide full and complete
operations, shall be professional in dress and behavior, and shall have
been screened under "Megan's Law" by the Contractor.
5. Contractor immediately contact a City representative, on-site, in cases of
emergency, accidents or public disorder.
6. All rides shall be in good repair, appearance and in safe and operable
condition.Contract No. 2008-052
E. Facility Set Up by City shall include:
1. A suitable location for the operation for the rides.
2. Permits and licenses for operating rides.
3. To have grounds properly prepared for the event and to arrange water,
trash receptacles and hauling.
4. To provide restrooms for Contractor and Contractor's personnel.
5. To provide staffing for ticket sales booths during ride operation hours.
6. To provide police protection.
7. Allowing Contractor to enter grounds with their equipment on Wednesday,
August 20, 2008, for proper set up of equipment because set up will
require two full days before opening day for safety reasons.
F. Facility Break Down and Clean up by Contractor shall include:
1. Within twenty-four (24) hours after the final time for operation of the rides,
Contractor shall remove all equipment from City's property and repair any
damage to the ride area caused by the ride, beyond reasonable wear and
tear.
2. Within twenty-four (24) hours after the final time for operation of the rides,
Contractor shall remove clean up each ride, concession and booth area
and repair any damage to the area, beyond reasonable wear and tear.
Trash shall be placed in receptacles provided by City.Contract No. 2008-052
EXHIBIT B
CITY OF CULVER CITY
AGREEMENT WITH GUADAGNO & SONS AMUSEMENTS
FOR AMUSEMENT RIDES FOR FIESTA LA BALLONA
SCHEDULE OF COMPENSATION
(Fixed Cost Basis)
1. RIDE TICKET PRICES:
Prices charged for ride tickets sold on grounds during the Fiesta La BaIlona
shall be:
ONE DOLLAR ($1.00) EACH,
TWENTY (20) TICKETS @ EIGHTEEN DOLLARS ($18.00)
THIRTY TWO (32) TICKETS @ TWENTY-FOUR DOLLARS ($24.00)
WRISTBANDS © TWENTY DOLLARS EACH ($20.00)
2. ADVANCED TICKET SALES:
Contractor will provide advance sale wristbands in any amount needed to be
sold at the price of:
PRESALE WRIST BANDS for FIFTEEN DOLLARS ($15.00)
These wristbands will be good on all rides. City will handle and be
RESPONSIBLE for the advance sales and the MONIES COLLECTED and
return of any unsold wristbands. Sale of these wristbands will cease before
opening of the Fiesta. ALL WRISTBANDS NOT RETURNED WILL BE
CONSIDERED SOLD.
3. GUARANTEED PAYMENT. For permitting Contractor to provide the rides
described in this Agreement, City shall retain:
A. Fifteen percent (15%) of the first Fifteen Thousand Dollars
($15,000.00) of Ride Gross;
B. Twenty (20%) of the second Fifteen Thousand Dollars ($15,000.00) of
Ride Gross; and
C. Twenty-five (25%) of balance of Ride Gross.
Ride Gross shall mean the total amount City collects for ticket and wristband
sales.Contract No. 2008-052
4. METHOD OF PAYMENT. The portion of the Ride Gross owed to Contractor
as specified in Paragraph 3 above shall be paid by City check within thirty (30)
days after the conclusion of the event and in accordance with City's normal
demand procedure provided:
• Contractor satisfactorily completes the equipment take down
• Contractor submits an IRS W-9 form to City
5. MIDWAY CONCESSION PAYMENT. Contractor shall pay to City the sum of
Fifty Dollars ($50.00) per game booth and One Hundred Dollars ($100.00) for
the one approved concession stand prior to the start of the Fiesta La Ballona.
6. CONTROL OF FUNDS. City shall be responsible for sale of ride tickets and
collection of monies for those tickets. An accounting of all ticket sales shall be
made available to Contractor.
7. DONATION TO FIESTA. At the conclusion of the Fiesta, and after all
payments have been made, contractor shall donate a total of one-thousand
dollars ($1,000) to the City to be used for the 2009 Fiesta La Ballona.|10 13|