HomeMy WebLinkAboutC-6355 - Grant Agreement for Commercial Facade Improvement Program - Tier 1 GRANT AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND
JAMES FRANK GUCCIARDO FOR
COMMERCIAL FACADE IMPROVEMENT PROGRAM — TIER 1
This Grant Agreement ("Agreement") is entered into this 2nd day of November,
2015 ("Effective Date"), by and between the City of Newport Beach, a California
municipal corporation and Charter City ("City'), and James Frank Gucciardo, a the
property owner of 511 East Balboa Blvd, Newport Beach, CA 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 Fagade 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 Ten Thousand Dollars and
00/100 ($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 00/100 ($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 — Priority Block: One hundred percent (100%) at project
approval, with any 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 16, 2016, 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,
James Frank Gucciardo 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: (i) 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.
James Frank Gucciardo 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 16, 2016, 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.
James Frank Gucciardo 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: James Frank Gucciardo
511 East Balboa Blvd
Newport Beach, CA 92661
%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.
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.
James Frank Gucciardo Page 5
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. Severability. 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. Controllina 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
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 Attornev'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.
James Frank Gucciardo Page 6
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.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
on the dates written below.
APPROVED AS TO FORM:
CITY ATTOR E 'S OFFICE
Date: lla f5
By:
Aaron C. Harp
City Attorney
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
By:
y
Kimberly Brandt
,%
Community Development Director
ATTEST:
Date:
By:
Leilani I. Brown
City Clerk
q�FORtdP t�:
Attachment: Exhibit A: Grant Proposal
Exhibit B: Program Description
GRANTEE:
P
D
James Frank Gucciardo,
[END OF SIGNATURES]
James Frank Gucciardo Page 7
EXHIBIT A
GRANT PROPOSAL
James Frank Gucciardo Page A-1
�EWPp CITY OF NEWPORT BEACH
100 Civic Center Drive
OQ � Newport Beach,California 92660
�3
(n 949 644-3200
WF 9 ,� ;n' newportheachca.gov/communitydevelopment
BALBOA VILLAGE
COMMERCIAL FACADE IMPROVEMENT PROGRAM
GRANT APPLICATION
Beginning on Monday, June 1, 2015, applications can be submitted in person, by mail,
or by email to:
Community Development Department
Attention: Fern Nueno
100 Civic Center Drive, Bay B
Newport Beach, California 92660
fnueno@newportbeachca.gov
For questions on the application, please contact:
Fern Nueno, Associate Planner fnueno(o)newportbeachca.gov or 949-644-3227 or
Brenda Wisneski, Deputy Director at bwisneski(a_)newportbeachca.gov or 949-644-3297
Date: 06/29/15
Business Name: Farah Financial Services
Business Address: 511 E Balboa Blvd
Applicant Contact Information:
Name: James F Gucciardo
Address: Post Office Box 544, Newport Beach, CA 92661-0544
Phone: (800) 763-1000 Email: accountingo_systems1000.net
The application is for: 0 Tier 1 ❑ Tier 2
DevelopmentCommunity
GANAHL LUMBER COMPANY
1220 FAST BATS, ROAD, AM%B=, CA 92805-5993 ESTIMATE / CONTRACT
PhcM# (714) 956-2050
#768241
4Ai,F.CPmzsc 1 BOB BARNARD DATE MON 06/29/15 PAGE 1
PHaE# 714-239-2172
PRICES EFFECTIVE THROLX;FI SAT 07/04/15
cm%M<x SYSTEM 1000 icB DOORS & WINDOWS
AiN1R£cc 511 E RAT BOA BLVD
aa?m= JAMES BALBOA
PHMV
FAX#
1. 2 4/0X5/0 HARDWOOD SIlNGLEHUC WINDOW 1,250.00 E 2,500.00
2. :SINGLE:GLAZE, BLOCK FRAME, 5-1/4 +IAMB.
3. 2 3/0X7/0 1-3/4 OAR CC M ERCA.IL 1 LITE DOOR 1,500.00 E 3,000.00
4. SINGLE GLAZE TEMP
5. 1 LARGE WINDOW SILL 465.00 E 465.00
G.
7. 1 STAIN &VARNISH 2,850.00 E 2,850.00
8.
9. 1 INSTALLATION 3,000.00 E 3,000.00
See TERMS AND =ITIONS OF SALE cn the last page. CONTINUED"
GANAHL LUMBER COMPANY
1220 EAST BALK ROAD, ANAHEIM, CA 92805-5993 ESTIMATE / CONTRACT
Phone# (714) 956-2050
#768241
sAlasPERsw BOB BARNARD DATE MON 06/29/15 PAM 2
pry:# 714-239-2172 .
PR-T= EFFE'L= =OUCH SAT 07/04/15
ccsm+m SYSTEM 1000 soB DOORS & WINDOWS
A=ss 511 E BAL20A BLVD
cw= JAMES BALBOA
pHaE*
FAX#
MI(M UK
ESTIMATE SUBTOTAL 0 11,815.00
CARTAGE 60.00
TAX 8.000% 950.00
ESTIMATE TOTAL, 12,825.00
Prices on this estimate are based on payment being made by cash, check or major
credit card if payment is made prior to or at the time of shipment. If a Ganahl
Lumber Company credit account is used, credit cards may not be used as payment:.
Our intent is to furnish you this list of materials according to the terms & conditions stated
on the face & back of the contract. An important element of this offering is timing. Delivery
must start within 30 days from the bid expiration date & be completed within 90 days. Material
not delivered within 90 days is subject to price change at the option of Ganahl Lumber Co.
* ----- EFFECTIVE JANMRY 1, 2014 -----
* The 2013 CALL a010E willbeenforced. The state law requires verification from *
* inspectors that framing mmbers do not exceed 19% moisture oontent at time of wrap. *
* Wall & floor framing shall, not be enclosed whm framing members emceed 19% moisture *
* ecmtent. For more details, go to MM.BSC.CA.GCYV and read CAIS CODE sec 4.505.3 *
TERNS ASID 07NDMCNS OF SASE:
CHECK THIS LIST as it shows the grade and quantity we agree to furnish. This document, when silted by Buyer and accepted in writing
by an officer or manager of Canahl Ixm�ber, becomes a burning MERACT OF SASE for the items listed herein. Seller is not obligated
hereunder unless this quotation is accepted in writing by the Buyer by the date specified above. Tnvoices are due and payable at the
Yazd listed above of or before the 10th of the math following delivery. dyer hereby assents to all terms and conditims on the
face and back of the quotation, and when signed by the parties, shall constitute a firm contract between the parties.
Buyer ackm ledges that these materials are for use at this parcel address: lot Block Tract
Seller Date Buyer Date
^___L, Lumber
Umber of Pages
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 facade 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°/x) 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;
James Frank Gucciardo 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.
James Frank Gucciardo Page B-2