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Home My WebLink AboutC-4500 - Grant Agreement FY2009-2010 for 2009 Christmas Walk and the 2010 CdM 5K RaceGRANT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND THE CORONA DEL MAR CHAMBER OF COMMERCE �13 g y 2009 by and This Agreement, entered into this �� da of � �_c-_ , between the CITY OF NEWPORT BEACH, a California municipal corporation and Charter City ("City"), and the Corona del Mar Chamber of Commerce, a non-profit mutual benefit corporation located at 2855 E. Coast Highway, Suite 100, Corona del Mar, CA 92625 ("GRANTEE"), is made with reference to the following: RECITALS WHEREAS, it is the policy of the City Council that the City's budget specifically allow the City Council to, at any time during the year, direct revenue towards non-profit agencies, community groups, community events, or enhancement projects with worthy projects or programs which the Council deems beneficial to Newport Beach's quality of life. WHEREAS, Grantee is a California non-profit mutual benefit corporation exempt from federal taxation pursuant to section 501(c)(6) of the Internal Revenue Code. WHEREAS, Grantee has requested a grant from the City to help pay for costs associated with the marketing and promotional activities for the 2009 Christmas Walk and the 2010 CdM 5K Race. WHEREAS, the Grantee has requested a grant in the amount of $20,000.00 (hereinafter the "GRANT" or the "GRANT FUNDS) from the City. WHEREAS, the Newport Beach City Council has determined that the Grant is in the public interest and for the benefit of the citizens of Newport Beach. WHEREAS, the City has approved a grant in the amount of Twenty Thousand Dollars and No Cents ($20,000.00) ("GRANT FUNDS") to GRANTEE under conditions of expenditure and reporting and accounting requirements. NOW, THEREFORE, the Parties agree as follows: 1. GRANT CITY agrees to pay to GRANTEE the GRANT amount of Twenty Thousand Dollars and No Cents ($20,000.00). GRANT FUNDS shall be paid as follows: Twenty Thousand Dollars and No Cents ($20,000.00) shall be paid within 30 days of the Grantee's execution of this Agreement and receipt of the Grantee's operating budget for the 2009-10 Fiscal Year. 2. TERM The term of this Agreement shall commence on the date first written above (the "Effective Date") and shall continue in full force and effect until terminated by the City or until June 30, 2010, whichever occurs first. 3. RESTRICTIONS ON USE OF FUNDS The GRANT FUNDS are subject to the following expenditure conditions, hereinafter the "APPROVED USE." The GRANT FUNDS shall: (a) Be expended solely for the purpose of marketing and promotional activities related to 2009 Corona del Mar Christmas Walk ($15,000.00) and the 2010 CdM 5K Race ($5,000.00); (b) Not be used for any activity that would violate 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)(6) of the Internal Revenue Code; (c) Be expended during the fiscal year July 1, 2009 through June 30, 2010 ("Spending Period"). GRANTEE further warrants to City that the GRANT FUNDS will be spent solely for the approved use and the GRANT shall be used by GRANTEE for the approved use during the spending period or the money shall be returned to City, as described in Section 5 below. 4. REPORTING AND ACCOUNTING REQUIRMENTS (a) At all times during the term if this Agreement, Grantee shall maintain true, proper, and complete books, records, and accounts (collectively called "Books and Records") in which shall be entered fully and accurately all transactions taken with respect to the operation of Grantee and the expenditure of the Grant Funds. Grantee shall maintain the books and records in accordance with Generally Accepted Accounting Principles, and allow the City to conduct an audit of the financial records upon reasonable notice at any times within four (4) years after expiration or termination of this Agreement. (b) Grantee shall on a quarterly basis during the term of 1 furnish the City with a Statement of Activities disbursement activities of Grantee. With this r, quarterly check registers and descriptions of as budget -to -actual -results. Grantee shall al basis, a Statement of Position describing tl this Agreement, describing the receipt and sport, Grantee shall include ach disbursement, as well ;o provide, on a quarterly B assets and liabilities of Grantee. All quarterly reports shall be due to the City no later than forty - Grant Agreement Page 2 five (45) days following the end of the reporting quarter. 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. (c) Grantee agrees to exercise prudent financial management processes including proper oversight of all assets, budget preparation, and timely reporting including budget -to -actual -comparisons. (d) All Activities 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. 5. USE OF THE MONEY The Grant Funds shall be used solely by Grantee for the approved use and for no other use. In the event that the Grant Funds are not used for the approved use by or before June 30, 2010, Grantee shall notify the City in writing, and shall be obligated to return the funds within sixty (60) days. 6. INDEMNIFICATION 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 any breach of the terms and conditions of this Agreement, any work performed or activities conducted for or at the Corona del Mar Chamber of Commerce (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). 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 the Grantee. Grant Agreement Page 3 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. 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 consent of City shall be null and void. 9. NOTICES 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. All notices, demands, requests or approvals from GRANTEE to City shall be addressed to the City at: City Manager City of Newport Beach 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658-8915 (949) 644-3000; Fax (949) 644-3020 All notices, demands, requests or approvals from City to Grantee shall be addressed to Grantee at: Linda Leonhard, Director Corona del Mar Chamber of Commerce 2855 E. Coast Hwy, Suite 100 Corona del Mar, CA 92625 (949) 673-4050 10. TERMINATION (a) 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 Grant Agreement Page 4 the thirty (30) day cure period. City shall be entitled to immediately terminate this Agreement if the default cannot be cured through corrective action. This Agreement is made on an annual basis, and as such is subject to non -renewal at its termination. (b) 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. 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. 12. 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. 13. 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. 14. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both Grantee and the City and approved as to form by the City Attorney. 15. 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. 16. 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. Grant Agreement Page 5 17. EQUAL OPPORTUNITY EMPLOYMENT Grantee represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 18. 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. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first above written. APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY By: 1A, 6L Leonie Mulvihill, Assistant City Attorney ATTEST: 10 ► - �� G ., brown,Leilani - City Clerk Cq 1r CITY OF NEWPORT BEACH, a Municipal Corporation By: DaWA. A. Kiff, City Manager GRANTEE: Corona del Mar Chamber of Commerce By: , (Corporare- Officer) Title: r�_S ; k- Print Name: Z ;-W'0 -4 (Financial Officer) Title: i�—Ao� Print Name: 6Ef�iv \ i:� r, S; Vk L- ,7A1 > Exhibit A: Request for funding letter dated April 17, 2009 Grant Agreement Page 6 a MMW 11A BisR 01. Alt Ci�N-i��E >�CI April 17, 2009 Homer Bludau City Manager CITY OF NEWPORT BEACH 3300 Newport Blvd Newport Beach, CA 92660 RE: Budget Reguest Dear Homer, The Corona del Mar Chamber of Commerce would like to once again thank the city for the support and generous grant funds approved in last year's 2008/2009 budget. As indicated in the grant documentation, these funds were allocated and spent on marketing and promotion of our organization's annual signature community events, the 281h Annual Scenic 5K and the 301h Annual Christmas Walk. Please see the attached financial summary to date on both events included under last year's grant. q On behalf of the Officers & Board of Directors of the Corona del Mar Chamber of Commerce, we look forward to another successful year in our partnership with the City on the Scenic 5K, and we thank you for assisting our organization in presenting these two traditional community special events. Your funding assistance towards our marketing efforts continue to make a significant difference in the growth of both events and in our contributions to the local community. Thank you once again and please feel free to give a call if there is anything else you require. Kind regards, Linda Leonhard President CORONA DEL MAR CHAMBER OF COMMERCE (949) 673-4050 Cc: Susan Giangrande Nancy Gardner Ed Selich Encl, 2855 E. Coast Hwy, Suite 100 - Corona del Mar, CA 92625 � Phi (949) 673-4054 • Fax (949) 673-3940• infoftedmcharnber.com www.cdrnchamber. coin Corona del Mar Chamber of Commerce CHRISTMAS WALK 09 - Budget Totals CONFIDENTIAL Page 1 of 1 Jan '00 - Dec 20 Ordinary Income/Expense Income Events Income Beverages Rev - Alcoholic 8,000.00 Food Revenue 2,000.00 Grants 15,000.00 Sponsorships 6,000.00 Opportunity Drawings 3,000.00 Vendor Space Reservations 9,000.00 Total Events Income 43,000.00 Total Income 43,000.00 Marketing & Expense Devel. Advertising -DMP Graphic Design 81.00 81.00 Advertising -DMP Mailhouse 1,500.00 1,500.00 Advertising -DMP Printing 950.00 950.00 Charitable Donations 350.00 Equipment Rental 4,300.00 Event Beverages - Alcoholic 500.00 Event Beverages - Non -Alcoholic 250.00 Event Decor 250.00 Event Food - General 392.00 Event Signage 300.00 300.00 Event Supplies 70.00 70.00 Facility Fees & Permits 1,000.00 1,000.00 Graphics Design 500.00 500.00 Hired Entertainment 2,100.00 Marketing 5,500.00 5,500.00 Meeting Expense 100.00 100.00 Outside Services 1,800.00 1,800.00 Postage and Delivery 300.00 300.00 Printing and Reproduction 3,364.00 3,364.00 Promotion / PR 200.00 200.00 Website 300.00 300.00 Total Expense 24,107.00 15,965.00 Net Ordinary Income 18,893.00 Net Income 18,893.00 CONFIDENTIAL Page 1 of 1 Corona del Mar Chamber of Commerce Scenic 5K 09 Profit & Loss Sep 1, '0... Ordinary Income/Expense Income Events Income Grants 5,000.00 Scenic 5K Event Revenue 28,550.86 Total Events Income 33,550.86 Total Income 33,550.86 Expense Advertising -DMP Graphic Design 146.00 Advertising -DMP Mailhouse 2,747.49 Advertising -DMP Printing 868.54 Event Supplies 77.53 Graphics Design 531.25 Postage and Delivery 114.70 Promotion / PR 249.71 Website - Maintenance 300.00 Total Expense 5,035.22 Net Ordinary Income 28,515.64 Net Income 28,515.64 Page 1 Corona del Mar Chamber of Commerce FINANCIAL REPORTS For City Grant Fiscal Year 2008/2009 • Christmas Walk 2008 P&L •Scenic 5K 2009 Budget Corona del Mar - of Commerce Scenic SK 09 ofit & Loss Ordinary Income/Expense Income Events Income Grants Scenic 5K Event Revenue Total Events Income Total Income Expense Advertising -DMP Graphic Design Advertising -DMP Mailhouse Advertising -DMP Printing Event Supplies Graphics Design Postage and Delivery Promotion / PR Website - Maintenance Total Expense Net Ordinary Income Net Income Sep 1, '08 - Nov 12, 09 5,000.00 28, 550.86 33,550.86 33, 550.86 146.00 2,747.49 868.54 77.53 531.25 114.70 249.71 300.00 5,035.22 28, 515.64 28, 515.64 Page 1 11:56 AM Corona del Mar Chamber of Commerce 03/09/10 CHRISTMAS WALK 08 P&L Accrual Basis All Transactions Mar 8, 10 Ordinary Income/Expense Income 81.00 Events Income 1,403.49 Advertising 1,650.00 Beverages Rev - Alcoholic 8,834.00 Food Revenue 2,080.00 Grants 10, 000.00 Sponsorships 10,500.00 Opportunity Drawings 3,465.00 Vendor Space Reservations 10,600.00 Total Events Income 47,129.00 Total Income 47,129.00 Expense Advertising -DMP Graphic Design 81.00 Advertising -DMP Mailhouse 1,403.49 Advertising -DMP Printing 915.90 Bad Debt Expense 889.00 Charitable Donations 305.50 Equipment Rental 5,155.03 Event Beverages - Alcoholic 149.52 Event Beverages - Non -Alcoholic 379.28 Event Decor 260.76 Event Food - General 392.55 Event Signage 53.88 Event Supplies 85.38 Facility Fees & Permits 583.00 Graphics Design 474.00 Hired Entertainment 2,444.00 Marketing 5,687.50 Meeting Expense 135.46 Outside Services 200.00 Postage and Delivery 216.50 Printing and Reproduction 3,657.39 Promotion / PR 111.00 Total Expense 23,580.14 Net Ordinary Income 23,548.86 Net Income 23,548.86 Page 1