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z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
June 22, 2021
Agenda Item No. 10
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Tara Finnigan, Deputy City Manager,
tfinnigan@newportbeachca.gov
PHONE: 949-644-3035
TITLE: Amendment No. One to Grant Agreement with BVMA, Inc. for
COVID-19 Economic Relief Funding Support
ABSTRACT:
In June 2020, the Newport Beach City Council approved the award of a $40,000 grant to
the Balboa Village Merchants Association, known as BVMA, Inc., to provide COVID-19
Economic Relief Funding Support. Staff recommends extending the term of the grant
agreement six months, to December 31, 2021, and amending the scope to reflect the
association's current marketing initiatives, as outlined in this report.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Authorize the City Manager and City Clerk to Execute Amendment No. One to the
Grant Agreement with BVMA, Inc. for COVID-19 Economic Relief Funding Support to
extend the term to December 31, 2021 and amend the scope of work.
DISCUSSION:
At the June 23, 2020 City Council meeting, the City Council reviewed a proposed plan
and budget outline prepared by BVMA, Inc., for how the merchant association would use,
if approved, $40,000 in City of Newport Beach (City) COVID-19 Economic Relief Funding
Support.
The plan provided details on a marketing campaign, branding and promotions designed
to promote dining, shopping and visitor attractions in Balboa Village. The plan also heavily
focused on a collaborative partnership BVMA, Inc. intended to form with the Balboa Island
Merchant Association, Inc., to cross market the two business districts' unique shopping,
dining, and recreation options, and to further drive traffic and sales to both areas of the
City. The Council approved the plan and authorized the City Manager to enter into a grant
agreement with BVMA, Inc.
10-1
Amendment No. One to Grant Agreement with BVMA, Inc. for
COVID-19 Economic Relief Funding Support
June 22, 2021
Page 2
The merchant groups were ultimately not able to form the collaborative partnership and
execute a "Best of Balboa" campaign. BVMA, Inc. pivoted and proceeded with some of
its own marketing plans, but was hindered at times by the persistent COVID-19
restrictions and closures. Despite the challenges of the past year, the association began
work on a number of marketing efforts including a new website, social media promotions,
and advertising. BVMA, Inc. has not, however, been able to expend the full $40,000 in
grant funds provided by the City and the agreement is set to expire on June 30.
The following table outlines the marketing expenses, the grant monies expended as of
June 1, 2021, and the remaining balance of grant funds.
Marketing Expense
Expended as of 6/1/21
Funds Remaining
Holiday Decorations
$2,200
$2,200
Advertising Print
$7,000
$0
Advertising (Digital)
$2,000
$2,500
Website Development & Management
$5,300
$1,000
Social Media Management
$2,700
$2,000
Videography & Photography
$7,600
$5,500
TOTAL
$26,800
$13,200
The BVMA, Inc. is seeking an extension of the agreement timeline to allow the association
time to expend the remaining grant money on the activities listed above.
Therefore, staff recommends approval of an amendment to the grant agreement to extend
the term until December 31, 2021, to provide additional time for BVMA, Inc. to expend the
$13,200 remaining in grant funds. The proposed revised scope of work focuses on the
marketing initiatives included in this report. It does not include the Best of Balboa activities
the BVMA, Inc. had planned to execute with Balboa Island merchants.
FISCAL IMPACT:
The $40,000 in COVID- 19 economic relief funding for BVMA, Inc. was included in the
City's FY 2020-21 budget. It was expensed to the City Manager's Office, Economic
Development Division, Community Support Expense Account 01020202- 821015.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
10-2
Amendment No. One to Grant Agreement with BVMA, Inc. for
COVID-19 Economic Relief Funding Support
June 22, 2021
Page 3
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A —Amendment No. One to Grant Agreement
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ATTACHMENT A
AMENDMENT NO. ONE TO
GRANT AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND BVMA INC.
THIS AMENDMENT NO. ONE TO GRANTAGREEMENT ("Amendment No. One")
is made and entered into as of this 22nd day of June, 2021 ("Effective Date"), by and
between the CITY OF NEWPORT BEACH, a California municipal corporation and charter
city ("City"), and BVMA INC., a California nonprofit corporation ("Grantee"), whose
address is 2865 East Coast Highway, Suite 360, Corona del Mar, CA 92625. City and
Grantee are at times individually referred to as "Party" and collectively as "Parties" herein.
RECITALS
A. On August 19, 2020, City and Grantee entered into a Grant Agreement
("Agreement") for COVID-19 Economic Relief Funding Support.
B. The parties desire to enter into this Amendment No. One to reflect additional
Services not included in the Agreement, to extend the term of the Agreement to
December 31, 2021.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. TERM
Section 2 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on the Effective Date, and shall
terminate on December 31, 2021, unless terminated earlier as set forth herein."
2. GRANT PROPOSAL
Exhibit A to the Agreement shall be amended in its entirety and replaced to include
the Grant Proposal, attached hereto as Exhibit A and incorporated herein by reference
("Grant Proposal").
3. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
10-4
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTO NEY'S OFFICE
Date: b
By: A leo_�
Aaron C. Harp
City Attorney
ATTEST:
Date:
At
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
Bw
Grace K. Leung
City Manager
CONSULTANT: BVMA, INC., a California
nonprofit corporation.
Date:
By:
Leilani I. Brown Kelly Carlson
City Clerk Chief Executive Officer
Date:
Bv:
Coleen Dialuisio
Secretary
[END OF SIGNATURES]
Attachments: Exhibit A — Grant Proposal
BVMA Inc. Page 2
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EXHIBIT A
GRANT PROPOSAL
BVMA Inc. Page A-1 10-6
COVID-19 Economic Recovery Marketing Plan:
Communications, Events and Marketing / Public Relations
BVMA, Inc. will continue to promote Balboa Village businesses and encourage locals and
visitors to shop and dine in the Village utilizing a combination of public relations and marketing
strategies, and utilizing communication tools and marketing channels such as the BVMA's new
website, social media and digital advertising. Specific marketing uses of the COVID-19 Relief
Funding will include:
Expense Description
Budgeted Expense
Advertising (Print)
$7,000
Advertising (Digital)
$4,500
Website Management & Development
$6,300
Social Media Management
$4,700
Videography & Photography Management
$13,100
Christmas Decorations
$4,400
Total
$40,000
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