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HomeMy WebLinkAboutC-7057-19 - Grant Agreement for Commerical Façade Improvement Program - Tier 1o -- t- GRANT AGREEMENT t BETWEEN THE CITY OF NEWPORT BEACH AND BALBOA LILY'S FOR COMMERCIAL FACADE IMPROVEMENT PROGRAM — TIER 1 This Grant Agreement ("Agreement") is entered into this 19th day of June, 2017 ("Effective Date"), by and between the City of Newport Beach, a California municipal corporation and Charter City ("City"), and Cafe Balboa, Inc., a California Corporation doing business as ("DBA") Balboa Lily's located at 711 E. Balboa Boulevard, Newport Beach, California 92661 ("Grantee"). City and Grantee are at times individually referred to as "Party" and collectively as "Parties" herein. RECITALS A. It is the policy of the City Council that the City's budget specifically allow the City Council to direct revenue towards non-profit agencies, community groups, community events, or enhancement projects with worthy projects or programs which the City Council deems beneficial to residents' quality of life. B. Grantee requested a grant from the City for Commercial Facade Improvement Program — Tier 1 ("Grant Proposal"). C. The City Council determined the Grant Proposal is for a worthy project that will benefit the City's residents' quality of life and improve the physical appearance and economic vitality of the City. D. The City Council approved a grant in the amount of $10,000.00 ("Grant Funds") to Grantee pursuant to certain conditions regarding expenditure, reporting, and accounting requirements as provided in this Agreement. NOW, THEREFORE, the Parties agree as follows: 1. GRANT 1.1. City awards to Grantee Grant Funds in the amount of Ten Thousand Dollars and 001100 ($10,000.00) as requested by Grantee in the Grant Proposal attached hereto as Exhibit A and incorporated herein by reference, or such other amount as authorized by the City Council. 1.2. Grant Funds shall be disbursed by City to Grantee as follows (select one); and upon Grantee's demonstrating it has adequate financing to cover the full cost of the improvements covered by the Grant Proposal: ® Tier 1: Fifty percent (50%) at project approval, with the remaining money reimbursed at completion of project after receipts have been submitted. 2. TERM The term of this Agreement shall commence on the Effective Date and shall continue in full force and effect until May 9, 2018, unless terminated earlier as provided herein. 3. RESTRICTIONS ON USE OF FUNDS 3.1. The Grant Funds are subject to the following expenditure conditions ("Approved Uses"): 3.1.1. The Grant Funds shall be expended solely for the purposes provided in the Program Description, attached hereto as Exhibit B and incorporated herein by reference; 3.1.2. The Grant Funds shall not be used for any activity that would violate City, state or federal statutory or decisional law such as regulations affecting non-profit or tax exempt organizations exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code; and 3.2. Grantee further warrants to City that the Grant Funds will be spent solely for the Approved Uses and the Grant Funds shall be used by Grantee during this Agreement's term otherwise the Grant Funds shall be returned to City, as provided in Section 5 below. 4. REPORTING AND ACCOUNTING REQUIREMENTS 4.1. At all times during the term of this Agreement, Grantee shall maintain true, proper, and complete books, records, and accounts (collectively, "Books and Records") in which shall be entered fully and accurately all transactions taken with respect to the operations of Grantee under the Grant Proposal and the expenditure of the Grant Funds. Grantee shall maintain the Books and Records in accordance with Generally Accepted Accounting Principles. 4.2. If the Grantee has been audited by an independent auditor or has been the subject of a compliance audit/examination by a grantee or regulatory agency during the past three years, audit reports and management letters indicating compliance violations, fraud, illegal acts, material weaknesses in internal control structure or reportable conditions, in connection with such audits shall be delivered to the City thirty (30) days prior to the effective date of this agreement. If no audits or events as described above have occurred during this period, the Grantee shall provide City a written assertion that no audits or similar examinations have occurred during the three (3) year period and an assertion that the Grantee is not aware of any events or conditions, described above, or other information that might reasonable impact City's decision to fund the grant as requested. 4.3. City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the right to audit Grantee's accounting procedures and internal controls of Grantee's financial systems as they relate to the Grant Proposal and to examine any cost, Balboa Lily's Page 2 revenue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representative(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Grantee agrees to fully cooperate with any such audit(s). 4.4. This right to audit shall extend during the length of this Agreement and for a period of three (3) years or longer, if required by law, following the date of any Grant Funds tendered under this Agreement. Grantee agrees to retain all necessary records/documentation for the entire length of this audit period. 4.5. Grantee shall, upon conclusion of the event, furnish the City with a Balance Sheet and Income Statement describing the receipt and disbursement activities of Grantee with respect to the Grant Funds. In its sole and absolute discretion the City may also require Grantee to submit: (1) quarterly check registers and descriptions of each disbursement; (ii) budget -to -actual -results; and (iii) a statement of position describing the assets and liabilities associated with the Grant event. All reports, including a post -event evaluation, shall be due to the City no later than forty-five (45) days following the conclusion of the event. In the event that an independent audit is conducted, Grantee shall forward a copy of the audited report to the City for review, including any Management Letter, Report on Internal Controls, or Reportable Conditions letter generated during the course of the audit. 4.6. Grantee agrees to exercise prudent financial management processes including proper oversight of all assets, budget preparation, and timely reporting including budget -to -actual -comparisons. 4.7. All Approved Uses shall be performed by Grantee or under Grantee's supervision. Grantee represents that it possesses the professional and technical skills required to perform the services required by this Agreement, and that it will perform all services with a standard of care and in a manner commensurate with the community professional standards. 4.8. If Grantee has supported Political Action Committees(s) (PACs) during the past three (3) years, the Grantee shall hire an independent auditor to perform limited, agreed-upon testwork procedures to provide City assurance that City sponsored event profits did not subsidize the funding of Political Action Committees (PACs) and event proceeds were adequately segregated from funds used to support PACs. Agreed upon procedures may include a review of a detail list of the past three (3) years of PAC contributions and expenditures, including: a. An identifying donor number, date and amount of each reported contribution; and b. A detail of expenditures sufficient enough to determine that the expenditures were solely for PAC -related expenses; and c. Any retained earnings or fund balance at the end of each fiscal year. Balboa Lily's Page 3 Substantive documentation for the contribution and expenditure should be available upon request. City shall approve the agreed-upon testwork procedures prior to the commencement of fieldwork. 5. USE OF GRANT FUNDS The Grant Funds shall be used solely by Grantee for the Approved Uses and for no other use. In the event that the Grant Funds are not used for the Approved Uses or are not expended by or before May 9, 2018, Grantee shall notify the City in writing, and shall be obligated to return the Grant Funds to City within thirty (30) days. 6. INDEMNIFICATION 6.1. To the fullest extent permitted by law, Grantee shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to this Agreement (including the negligent and/or willful acts, errors and/or omissions of Grantee, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). 6.2. Notwithstanding the foregoing, nothing herein shall be construed to require Grantee to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Grantee. 7. GRANTEE INDEPENDENCE In the performance of this Agreement, the Grantee, and the agents and employees of Grantee, shall act in an independent capacity and are not officers, employees or agents of the City. The manner and means of performing the Approved Uses are under the control of Grantee, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Grantee or any of Grantee's employees or agents, to be the agents or employees of City. Grantee shall have the responsibility for and control over the means of performing the Approved Uses, provided that Grantee is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Grantee as to the details of the performance or to exercise a measure of control over Grantee shall mean only that Grantee shall follow the desires of City with respect to the results of the Approved Uses. Balboa Lily's Page 4 8. PROHIBITION AGAINST TRANSFERS Grantee shall not assign, sublease, hypothecate or transfer this Agreement or any of the services to be performed under this Agreement, directly or indirectly, by operation of law or otherwise without prior written consent of City. Any attempt to do so without written consent of City shall be null and void. 9. NOTICES 9.1. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the third business day after the deposit thereof in the United States mail, postage prepaid, first class mail, addressed as hereinafter provided. 9.2. All notices, demands, requests or approvals from Grantee to City shall be addressed to the City at: Attn: Community Development Director City of Newport Beach 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92660 9.3. All notices, demands, requests or approvals from City to Grantee shall be addressed to Grantee at: Attn: Eunjoo Pluenneke Balboa Lily's 711 E. Balboa Boulevard Newport Beach, CA 92661 10.TERMINATION 10.1. Termination for Cause. Grantee shall be in default if Grantee fails or refuses to perform any duty required by the Agreement or performs in a manner inconsistent with the terms, conditions and restrictions in this Agreement. In such event, City shall give Grantee, thirty (30) days written notice to cure, if the default can be cured and City shall be entitled to terminate this Agreement if Grantee has not cured the default within the thirty (30) day cure period. City shall be entitled to immediately terminate this Agreement if the default cannot be cured through corrective action. If terminated for cause, Grant Funds shall be returned to the City pursuant to Section 5. This Agreement is made on an annual basis, and as such is subject to non -renewal at its termination. 10.2. Termination without Cause. City may terminate this Agreement at anytime with or without cause upon seven (7) days written notice to Grantee, any remaining Grant Funds in Grantee's possession at the time of termination shall be returned to City pursuant to Section 5. Balboa Lily's Page 5 10.3. Specific Performance. Grantee agrees that the City has the legal right, and all necessary conditions have been satisfied, to specifically enforce Grantee's obligations pursuant to this Agreement. 11. STANDARD PROVISIONS 11.1. Recitals. City and Grantee acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 11.2. Compliance With all Laws. Grantee shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 11.3. Waiver. A waiver by either Party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 11.4. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 11.5. Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Grant Proposal or any other attachments attached hereto, the terms of this Agreement shall govern. 11.6. Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 11.7. Amendments. This Agreement may be modified or amended only by a written document executed by both Grantee and City and approved as to form by the City Attorney. 11.8. Severabilitv. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 11.9. Controlling Law And Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 11.10. Equal Opportunity Employment. Grantee represents that it is an equal opportunity employer and it shall not discriminate against any contractor, employee or Balboa Lily's Page 6 applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age or any other impermissible basis under law. 11.11. No Attorney's Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorney's fees. 11.12. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. [SIGNATURES ON NEXT PAGE] Balboa Lily's Page 7 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: �Z AaronO. Harp Cily-xqorney ATTEST: / �) Date: 6 By L Attachment: Exhibit A: Grant Proposal Exhibit B: Program Description CITY OF NEWPORT BEACH, A California municipal corporation Date: -4C„ ' 13-17 By: 4kY. Kimberly Brandt Community Development Director GRANTEE: Balboa Cafe, Inc., a California corporation doing business as ("DBA") Bal o Lil 's Date: ! By: Eunjoo Poonneke CEO / C [END OF SIGNATURES] Balboa Lily's Page 8 EXHIBIT A GRANT PROPOSAL Balboa Lily's Page A-1 BALBOA VILLAGE COMMERCIAL FACADE IMPROVEMENT PROGRAM GRANT APPLICATION Beginning on Monday, ,lune 1 2015, apps;cations can be submitted in person, by mail, or by email to: Community Development Department Attention: Benlam:n Zdeba 100 Civic Center Drive Bay 8 Newport Beach, Califom-a 92660 bzdeba@newportbeachca gov For questions on the application, please contact Benjamin Zdeba, Associate Planner Brenda Wisneski, Deputy Director at Date 331 by I -i Business Name- -bc .o, )_� 1y1 S Business Address `71{ E. t3ul4�ct� P k,16 Applicant Contact Information Name ri so_ f lueno e ky. Add ress: C, _ or 949-644-3253 or or 949-644.3297 Phone { vok(6b- tb 4 -;t— Email- �Ctteh e./,ozu 4 (YYA The application is for Tier 1 ❑ Tier 2 Balboa Village Facade Program Business Mame Qu{boa Page 2 List all exterior improvements to be considered and include a cost estimate for each. Conceptual architectural plans must be attached to this application, �4Tq4,o2 St(4jr�f�4 Sa�fS. 6y E)(I f.21tij� QgrN t -(, Gc Total Cost 3 Grant Amount Requested J Applicant Cost ( 3 Actmowledgment. ,H{ I have read and understand the Program Information and Requirements Form 3 3!(o'2ot7 Date Date red ddiiferent;rom the applicant. S A lV cc C6 R d C N v m E c a E 0 a u v v `o 0 u m c v c 0 0 0 u m c N W PG & SONS, INC FAX -EMAIL PROPOSAL LETTER TO: CHRIS DEASON COMPANY: VOIT REAL ESTATE DATE SENT: 1-25-17 TOTAL PAGES: 1 RE: EXTERIOR PAINT 711 MAIN STREET NEWPORT BEACH, CA SCOPE OF WORK - EXTERIOR PAINT FROM: PAT GLEASON CELL: 714-458-6931 Fax. 714-960-5989 EMAIL: GLEASONFAMILY(OEARTHLINK.NET 1.) PREP AND PAINT THE EXTERIOR PLASTER WALLS, WINDOWS AND SOFFITS OF THE BUILDING. $ 6,500.00 2.) PREP AND PAINT THE CARPORT WOOD COVER. $ 1,300.00 EXCLUSIONS PLANS OR PERMITS AUTHORIZED TO PROCEED, DATE TOTAL $ 7,800.00 GER RD Estimate Signs & Graphics, Inc. 2000 Placentia Ave Date Estimate # Costa Mesa, CA 92627 2/8/2017 6668 Bill To: Balboa Lily's Eunjoo Pluenneke 711 E. Balboa Blvd Newport Beach, CA 92663 Phone # Fax # E-mail Web Site 949-631-2499 949-548-7058 Joe@ge=dsigns.com w .ger dsignsxc Lu;61-� g>, J (Pill w ƒ4B \ « \ d EXHIBIT B PROGRAM DESCRIPTION Commercial Facade Improvement Program — Tier 1: • Eligible projects include minor improvements, such as painting, murals, lighting, anti -graffiti film coating, awnings, landscaping, window treatments, signs, exterior repair, architectural treatments, and other improvements to architectural features; • Eligible fagade upgrades must be exterior improvements visible from primary streets; • Grants may be awarded for up to Five Thousand Dollars and 00/100 ($5,000.00) per tenant suite; • Fifty percent (50%) of grant money provided at project approval, with the remaining money reimbursed to the City at completion of project after receipts have been submitted (i.e., if the grant is for Five Thousand Dollars and 00/100 ($5,000.00), the City will provide Two Thousand Five Hundred Dollars and 00/100 ($2,500.00) at project approval and the remaining Two Thousand Five Hundred Dollars and 00/100 ($2,500.00) at the completion of the project. If the entire project costs less than the Five Thousand Dollars and 00/100 ($5,000.00), Grantee shall reimburse the City for the remaining unused balance at the completion of the project); • Projects must be completed within twelve (12) months of grant approval or building permit issuance, whichever is earlier; and • City permit fees will be waived, including building plan check fees and building construction permit fees. Fees otherwise required by any other provision of law will not be waived, including but not limited to fees for environmental clearance or fees collected by the City on behalf of any other public agency or entity; Commercial Facade Improvement Program — Tier 1 — Priority Block: • Grants may be awarded for up to Ten Thousand Dollars and 00/100 ($10,000.00) per tenant suite; • One Hundred percent (100%) of grant money provided at project approval, with the remaining money or unused funds reimbursed to the City at completion of project after receipts have been submitted; • Expedited plan check review where feasible; Additional Program Components: • All project cost estimates will be reviewed by the Building Official; • Receipts are required to be submitted at project completion; Balboa Lily's Page B-1 • Properties are eligible for Tier 1 grants once every ten years; • Program funds are to be used for exterior building improvements rather than simple routine maintenance; • Additional improvements that are deemed to be consistent with the intent of the Program will be reviewed and approved/disapproved on a case-by-case basis by the Community Development Director; • All improvements shall conform to the City Building Codes, Zoning Ordinance, and applicable Design Guidelines; • In accordance with the California Labor Code (Sections 1770 et seq.), prevailing wages may be required for improvements completed through the Program. Participants in the Program are responsible for ensuring that the improvements are in compliance with the Public Works/Prevailing Wage Law; • Property owners are responsible for upkeep and property maintenance. By accepting grant funds, the applicant commits to properly maintain all improvements and to keep storefronts, as well as sides and back of buildings, clean and free of graffiti for a minimum of five years at the applicant's own cost and expense; • Continuation of the Program is subject to sufficient funding as appropriated by the City Council; and • The City reserves the right to cancel or modify this Program at any time prior to grant approval, without notice. Balboa Lily's Page B-2