HomeMy WebLinkAboutC-8281-13B - Community Programs Grant Agreement FY 18-19GRANT AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND
BALBOA ISLAND MUSEUM AND HISTORICAL SOCIETY
This Grant Agreement ("Agreement") is entered into this 28th day of February,
2019 ("Effective Date"), by and between the City of Newport Beach, a California municipal
corporation and Charter City ("City"), and BALBOA ISLAND MUSEUM AND HISTORICAL
SOCIETY, a California nonprofit corporation located at 210 B Marine Avenue, Balboa
Island, CA 92662 ("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 allows 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 the residents' quality of life.
B. Grantee requested a grant from the City to assist with the expansion efforts of the
newly imagined Museum, specifically with the design and enhancement of exhibit
spaces ("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.
D. The City Council approved a grant in the amount of Twenty Five Thousand
Dollars and 00/100 ($25,000.00) ("Grant Funds") to Grantee pursuant to certain
conditions regarding expenditure, reporting, and accounting requirements.
NOW, THEREFORE, the Parties agree as follows:
1. GRANT
1.1. City awards to Grantee Grant Funds in the amount of Twenty Five Thousand
Dollars and 00/100 ($25,000.00) 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):
® At the time of execution of this Agreement.
BALBOA ISLAND MUSEUM AND HISTORICAL SOCIETY Page 1
2. TERM
The term of this Agreement shall commence on the Effective Date and shall
continue in full force and effect until June 30, 2019, unless terminated earlier as provided
herein.
3. RESTRICTIONS ON USE OF FUNDS AND OTHER REQUIREMENTS RELATED
TO THE RECEIPT OF GRANT 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 Exhibit A;
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.
3.3. Grantee shall conduct background checks for all of its volunteers and
employees who work with minor children in relation to any project described in Grantee's
Grant Proposal. To the extent applicable, Grantee shall provide the City certification that
it has complied with this requirement prior to the receipt of Grant Funds.
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.
BALBOA ISLAND MUSEUM AND HISTORICAL SOCIETY Page 2
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, 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 and with the ordinary degree of skill and care that would be used
by other reasonably competent practitioners of the same discipline under similar
circumstances.
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
BALBOA ISLAND MUSEUM AND HISTORICAL SOCIETY Page 3
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.
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
5.1. 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 June 30, 2019, Grantee shall notify the City in writing,
and shall be obligated to return the Grant Funds to City within thirty (30) days.
5.2. The City's grant contribution shall only be used for non -secular purposes.
Grantees shall not use the City's grant contribution, or any portion thereof, for any purpose
that violates local, state, or federal law, including, but not limited to, the Establishment
Clause.
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
BALBOA ISLAND MUSEUM AND HISTORICAL SOCIETY Page 4
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.
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: City Manager
City of Newport Beach
100 Civic Center Drive
P.O. Box 1768
Newport Beach, CA 92658-8915
9.3. All notices, demands, requests or approvals from City to Grantee shall be
addressed to Grantee at:
Attn: Shirley Pepys
210 B Marine Avenue
Balboa Island, CA 92662
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
BALBOA ISLAND MUSEUM AND HISTORICAL SOCIETY Page 5
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 any time
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.
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. 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
BALBOA ISLAND MUSEUM AND HISTORICAL SOCIETY Page 6
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 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 ISLAND MUSEUM AND HISTORICAL SOCIETY 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: //6 //q
By: ly�"
roe"Aaron C. Harp \q
City Attorney og
ATTEST: 3 02
Date:
City Clerk
Attachment: Exhibit A: Grant Proposal
CITY OF NEWPORT BEACH,
A California municipal corporation
Date: 3/-7 /1
`1
By:
Gktang
Cr
GRANTEE:BALBOA ISLAND MUSEUM
AND HISTORICAL SOCIETY, a California
nonprofit corporation
Date: 3-17-/l
By:
Shirley Pepys
Chief Executive Yfficer
Date:
Bydcreeck /
tary
[END OF SIGNATURES]
BALBOA ISLAND MUSEUM AND HISTORICAL SOCIETY Page 8
Exhibit A
Grant Funds shall be expended solely to assist with the expansion efforts of the newly
imagined Museum, specifically with the design and enhancement of exhibit spaces. No
Grant Funds may be used to fund any political activities.
BALBOA ISLAND MUSEUM AND HISTORICAL SOCIETY Page A-1
Applic 'nt Information
Name o'Applicant Organization:
THE C1 1Y CLEW
Balboa Island Museum and Historical Society
Applican ;Representative Contact Information:
First Name Shirley pY Last Name Pe s
Title / Affiliation:
President
Full Address of Organization:
210 Marine Avenue, Balboa Island CA 92662
Phone
Email
949-675-3952
shirley@balboaislandmuseum.org
Type of Entity (indicate one):
Nonprofit (List type) Community /Neighborhood School
501(c)(3); 170(b)(1)(A)(vi) Other?
Entity Address (if different from applicant):
Name of Program or Service:
Balboa Island Museum
Type of Program or Service offered to Newport Beach residents:
The only museum showcasing the history of Newport Beach, Balboa Island & communities, and
offering educational programs/presentations to the community and local schools and scouts.
Have you previously received City support for this or a similar program or activity?
YES
NO
.Z
0 -
If yes, please list the programs(s), year(s) and amount(s):
Funds received have been used for various projects including exhibits, development, research,
expansion. 2013 - $15,000; 2014, 2015, 2016 - $20,000; 2017 - $25,000; 2018 - $30,000
Number of Newport Beach residents participating or receiving services within past year. (Specify
numbers by type of service.)
Residents participating in Museum events: Speaker Series, Special Events, etc. = 1,300
Residents visiting the Museum within the past year = 5,000
Percentage of this program devoted or utilized by Newport Beach residents:
75%
Total annual fundraising/donations/sponsorships received by your organization:
Fiscal Year July 1, 2017 to June 80, 2018: $250,000 in donations; anonymous donation of $150,000
annually for the next 5 years to cover rent in new location.
Brief description of program or activity for which you are seeking a grant:
The New Balboa Island Museum, Newport Beach has expanded! Our new location at 210 Marine Ave.
allows us to more than double our footprint. We have completely redesigned our exhibits to reflect a
state-of-the-art presentation. We will include interactive attractions and more community events. This
prime location will contribute to our growth, greater exposure, and ability to reach more people in our
community, as well as visitors. We desire to be a destination for neighbors and travelers, and a center
point for Newport Beach.
Explain how your program or activity serves, involves or engages Newport Beach residents (150 -
word maximum):
In the past seven years on Marine Ave., the Museum has seen over 100,000 visitors,. many of whom
are Newport Beach residents. They have enjoyed our exhibits while learning about the history of
their communities --Balboa Island, Newport Beach, and Newport Harbor. Residents have raved about
our popular Speaker Events which have celebrated the Newport Beach Police Department, the
Balboa Island Fire Department, the Beek family, Wing Lam & the Lee family, and more. These
events, as well as others, have brought neighbors together in a welcoming environment. The
Museum provides a place where residents can gather. We host the after parties at the Museum for
the BIIA Concert series, the Home Tour & other community events. One year ago we became a
forever home for the John Wayne exhibit, and this year we introduced the Veterans Project,
including an exhibit featuring local veterans and an online database that will allow people to view
first-hand memories of our military. We also have an educational program for Scouts and students.
All of these elements encourage members of our communities to support the City.
The request for City of Newport Beach support must include a list of other City
Yes
No
entities, groups or programs (e.g., CDBG, Discretionary Funds, Special Event
grants, etc.) from which the applicant is seeking financial support. Are you seeking
0
support from other City entities?
If you answered yes above, please list the entities or groups and the amount of financial support
requested from each:
Amount of financial assistance received last year (FY 17-18) from the City of'Newport Beach
(if any): $
$30,000
Amount of financial assistance requested FY 18-19: $
$50,000
A detailed description of how the FY 18-19 grant money would be spent:
Funds from this grant are a wonderful investment in our community. They will be used to continue
the expansion efforts of the newly imagined Museum, which has more square footage for gallery
space, exhibitions, programming, education and events. We have installed a state-of-the-art
audio/visual system and the exhibits have been enhanced and upgraded. This involves a great deal
of design and execution. We desire to offer an unforgettable experience for our community members
and visitors as a community center and destination.
Does your organization work with minor children?
Yes
No
If yes, do you require background checks for employees and volunteers?
Yom,
No
LJ
Please explain:
We offer educational programs for Boy Scouts, Girl Scouts, other children's organizations & local
school children.
As your organization's representative, please check the box below and type your name in the line
below.
1 acknowledge that submission of this application does not guarantee that my organization
will receive City support.
Name: Shirley Pepys �
Attach event budget and submit the completed application no later than Friday, November 16, 2018
at 4:30 p.m.