Who Keeps Money if City Gets a Refund for Disappointing Fireworks?

If and when the city receives a partial refund for a disappointing 4th of July fireworks show, the money may present a sticky situation.

For the second year in a row, businesses have footed most of the bill to host the celebration. City leaders had decided they didn’t have the funds for the show and were ready to strike it from the budget when corporate sponsors came through.

This year, of the $29,000 price tag, sponsors provided most of that, said city spokeswoman Cathy Salcedo.

“I know that the city received $22,650 in donations and covered the remainder of $6,250 in its budget,” Salcedo said.

A spokesman for the largest sponsor, SDG&E, said he’s OK with the city keeping whatever refund officials can get from Bay Fireworks, the same provider that put on the disastrous show in Simi Valley that injured 30 people.

“We’re just happy to be a partner and we would not expect anything to come back to us,” said Duane Cave.

Here are some terms of San Juan Capistrano’s contract with Bay Fireworks:

• The company credits the city $50 for every minute the show’s start is delayed because of negligence past 9:05 p.m. up to $2,000.
• During the show, each minute of each interruption caused by the provider’s negligence results in a credit of $50 per minute, up to $1,000. However, malfunction of the fireworks devices is not included.
  
• If more than 3 percent of the fireworks fail, the company provides the value of those displays as a credit to the city.
  
• The city can get 25 percent of its money back if the entire show is substantially different than what the contract calls for. That number includes credits from the above bullet points.