HomeMy WebLinkAboutC-8577-10 - Cultural Arts Grants - FY 19-20 - Music Education ProgramsGRANT AGREEMENT
r BETWEEN THE CITY OF NEWPORT BEACH AND
PHILHARMONIC SOCIETY OF ORANGE COUNTY
00
v
This Grant Agreement ("Agreement") is entered into this 13th day of December,
2019 ("Effective Date"), by and between the City of Newport Beach, a California municipal
corporation and Charter City ("City"), and PHILHARMONIC SOCIETY OF ORANGE
COUNTY, a California nonprofit corporation located at 2082 Business Center Drive, Suite
100, Irvine, CA 92612 ("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 for its youth music education programs
and concerts ("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 Five Thousand Dollars and
00/100 ($5,000.00) ("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 Five Thousand Dollars
and 00/100 ($5,000.00) 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:
® At the time of execution of this Agreement.
2. TERM
The term of this Agreement shall commence on the Effective Date and shall
continue in full force and effect until October 1, 2020, unless terminated earlier as
provided herein.
Philharmonic Society of Orange County Page 1
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. Grantee shall make available to City such Books and Records
upon City's request.
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
Philharmonic Society of Orange County Page 2
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
b. A detail of expenditures sufficient enough to determine that the
expenditures were solely for PAC -related expenses; and
Philharmonic Society of Orange County Page 3
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 September 25, 2020, 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
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
Philharmonic Society of Orange County Page 4
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: Library Services Director
City of Newport Beach
1000 Avocado Ave.
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: Ron Dufault
Philharmonic Society of Orange County
2082 Business Center Drive, Suite 100
Irvine, CA 92612
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
Philharmonic Society of Orange County 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
Philharmonic Society of Orange County 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]
Philharmonic Society of Orange County 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: T b
JA%4_k_�-
fvC. Aaron C. Harp �q
City Attorney \�,lcl` .
ATTEST: /S,23,
Date:
By:Avk &h)l/k
Leilani I. Brown
City Clerk
Attachment: Exhibit A: Grant Proposal
CITY OF NEWPORT BEACH,
A California municipal corporation
Date: /a -013-7
By:
Gra . Leung
Cit al.
GRANTEE: PHILHARMONIC SOCIETY
OF ORANGE COUNTY, a California
nonprofit corporation
Date:
By:
DonMAja —
n Kendall
Chief Executive Officer
Date: 1 .2- It/
By:
St6phen Amendt
Secretary
[END OF SIGNATURES]
Philharmonic Society of Orange County Page 8
Exhibit A
Philharmonic Society of Orange County Page A-1
SEW PART
° 4 NEWPORT BEACH CITY ARTS COMMISSION
2019-20 CULTURAL ARTS GRANT APPLICATION
c P
9<OF1N
(Applications must be typed or word -processed- you may reformat on the computer as long as it
appears the same: i.e., use Times New Roman 12 point and the same pagination.)
Philharmonic Society of Orange County _
Popular Name of Organization
Orange County Philharmonic Society
Legal Name (if different) Federal Tax ID No.
2082 Business Center Drive, Suite 100
Mailing Address
Irvine, CA 92612
City Zip
Ron Dufault (949) 553-2422
Contact Name Telephone
(949) 553-2421 RonAphUharmonicsociety.org http://www.phitharmoniesocietV.orp_/
FAX E-mail Web Site
Orange County, California -- Newport Beach Geographical Area Served
Have you received a City of Newport Beach Cultural Arts Grant before? Yes
If so, when? 1992, 1995,1999, 2002, (and other years)
Year organization was founded 1954 Number of paid staff 13 Number- of active volunteers 750
Total amount requested: (from request line of project budget) $5000
Estimated number of people in Newport Beach that the proposed project(s) will serve: 3500
Briefly describe below your organization's purpose, mission, and goals.
As Orange County's third oldest arts organization and first music organization, the Philharmonic Society
is proud of its two -fold mission of presenting world-class artists and as well as having served over six
million school children for more than sixty years.
The mission of the Philhannonic Society of Orange County is to foster an appreciation for music by
presenting national and international perforinances of the highest quality while also providing dynamic
and innovative music education programs for individuals of all ages.
The Philharmonic Committees support the mission of the Philharmonic Society of Orange County by
providing exceptional youth music education programs that ENGAGE and INSPIRE students to develop a
life-long appreciation of music and the power it has to CONNECT and ENRICH lives.
2. Identify and describe why there is a need in the Newport Beach Community for your proposed
project/program. Include a quantitative description of the need and on what you based your findings
(i.e. "Based on a study done by the PTA, there are one hundred children in the 4th -6th grades at
Newport Elementary who have had no training with musical instruments.") Describe how you have
determined that your organization is the best organization for the proposed project/program.
A two-year Swiss study, involving 1,200 children in 50 schools, showed that students involved in music
programs were better at languages, learned to read more easily, showed an improved social climate,
showed more enjoyment in school, and had a lower level of stress than non-musical students. These results
were confirmed by a recent University of Montreal study showing that musical training strengthens the
brain's executive function on critical tasks like processing and retaining information, controlling behavior,
making decisions, and problem solving. It was also found that musical training could improve and
strengthen executive functioning in both children and adults.
The Philharmonic Society is uniquely qualified to fill this need for the children of Newport Beach and in
the Newport/Mesa school district. We have provided a variety of concerts and programs for Orange
County school children for over 60 years. Our award-winning music education programs are developed to
be grade -appropriate and relate to California standards to enhance classroom curriculum. Participating in
our programs also inspire students to take instrumental music lessons through watching our concerts and
programs. High school students who have participate in the Philhannonic High School Orchestra Festivals
comment that they were influenced by the Philhannonic youth music prograrns they experienced in
elementary school.
The fiords applied for in this grant will be used to fiord these programs and concerts that are attended by
the school children in the Newport/ Mesa school district.
The Philharmonic Committees have seven of their twenty-two groups with members who are actively
engaged in the Newport Beach conunnrnity in helping to provide these Philharmonic youth music
programs. They help raise funds, provide leadership, and volunteer as docents to provide music
opportunities for school children in their city. Music matters to them.
2
Describe the specific project/program that will be funded by a cultural grant. Include how the proposed
project/program will be implemented and outline a schedule or project timeline, with planned dates
and locations. Identify individuals and groups involved, particularly artists and performers, and
describe their roles and responsibilities. Describe the background and qualifications of your
organization and key personnel to be involved in the program. Remember: the City_funds only projects
and programs- not operating expenses. These projects and programs must promote community
involvement and awareness of the arts in Newport Beach.
Is this a new or existing X project/program?
The Newport -Mesa school district benefits every year from the Philharmonic youth music education
programs and concerts which are provided free of cost. Invitations for these programs are sent in the
spring and fall for the school year under the purview of Director of Volunteer and Education Services,
Heather Cromleigh. RSVP forms are returned to the Philharmonic office during the summer and first
months of school with requested dates and programs. Information is then recorded on excel sheets, and the
schools are contacted regarding requested time and date of performances.
Professional musicians are contracted through the musician's union to provide the music for our programs.
The 5"' Grade Concert showcases the Philharmonic's Orange County Youth Symphony with 200 student
musicians, including budding musicians from Newport -Mesa high schools. We have also worked with
Chapman University's dance department to create a physical dimension to the music program.
Music Mobile is an in -school program presented by local Committee mernbers that introduces 3rd graders
to the instrument families in an orchestra and how sound is made by each group. Additional Philhannonic
youth education programs are also offered each year to Newport -Mesa schools: California Journeys (grade
4), Musicians on Campus (grades 4-6), Ensembles on Tour (grades 6-8), and the High School Orchestra
Festival (grades 9-12).
4. Define or describe the segment of the population in Newport Beach that you intend to serve by your
project/program. Include such things as age, location, numbers served, etc.
Our prograrnrning is offered to K-12 students in public and private schools. The Philharmonic Society
serves all genders, income levels, races, and disabilities in the school population. One third of students
attending the programs fall into the low -to moderate income level in Title I Schools.
The chart below shows the breakdown of Newport -Mesa school children that benefited from the following
Philharmonic youth music programs for 2018-2019. We try to facilitate as many schools as possible that
send in their reservations. We estimate that a similar number of students in Newport Beach will benefit
from these, or the additional Philharmonic youth music programs, in 2019-2020.
Grade
Philharmonic Youth
Music Programs &
Concerts
NB Children
Served in 2018-19
Production Cost
/Student
Newport Beach
Cost Benefits
2
Concerts for 2nd Graders
985
$1.48
$1457.80
3
Music Mobile
1125
$ .30
$337.50
5
Concerts for 5"' Graders
1321
$4.37
$5772.77
6
World Music Concert
158
$4.76
$277.24
— i
1 3489 students
TOTAL
$7845.31
5. Complete the project budget form. Address only the budget.for the specific project, not your annual
operating budget. For multi -project proposals, please duplicate and fill out a budget for each project.
Please annotate the budget at the bottom if there are details (such as a breakdown of personnel or a
marketing budget) critical to the proposal.
PROJECT BUDGET Funding from the City of Funding from
Newport Beach Other Sources
EXPENSES -Personnel
Artistic $5000
Administrative
Technical Production
EXIMA SEN-Uperating
Facility Expense/Space Rental
Marketing
Production/Exhibition Expense
Touring/Presentation Expense
Educational Materials
Transportation
Equipment
Other (if greater than 10%,
annotate below)
GRAND TOTAL
$5000
6. Describe the expected quantifiable outcomes of your project/program and how you will evaluate
the results. Be very specific in addressing the ways that you will determine that your
project/program met the needs that you identified and accomplishes the goals you set out to
achieve (i.e., you provide 50 hours of musical instruction and instruments to the 100 children at
Newport Elementary school as measured by music store rental receipts and logs of instructors.)
Data will be collected from the reservation forms and compiled into an excel sheet and chart showing the
total number of children attending each concert or program for each district and school participating in the
youth program or concert. This infonnation is published and distributed at Tl -ie Committees of the
Philhannonic Annual Meeting for the 750 members.
A teacher questionnaire will also be distributed to schools at the end of the performance. Teachers will be
invited to give critique of the perfonnance, how well the infonnation was explained and presented to the
school children, and the involvement of the students, as well as other comments.
The questiormaire results will then be discussed at The Committees education committee meetings to
ensure that the Philhannonic youth education programs are kept age-appropriate, lively, timely, and up-to-
date.
7. Attachments Requested
Please do not send material in excess of what is requested; it will not be seen by the City Arts Commission.
• A list of Board Members and their affiliations
A recent list of individuals, corporations and foundations that provide organizational support -
not to exceed one page.
If you are a 501(c) (3) organization attach a copy of your IRS detennination letter (or your
fiscal agent's) indicating tax exempt status.
One brochure and/or one press clipping. Do not send photos, videos, CDs or any other
extraneous material. It will not be presented to the City Arts Commission.
8. Please complete this operating budget form for 2018/19 and 2019/20. This is not the project/program
budget for which you are applying, but your overall organizational budget. You may annotate at the
bottom if there are details critical to the proposal.
PHILHARMONIC SOCIETY OF ORANGE COUNTY OPERATING BUDGET
2018/19 Budget (current) 2019/20 Budget (projected)
I. Income (cash only)
Contributed 2,281,937 3,233,300
Earned 2,363,253 1,798,450
Total Income 4,645,190 5,031,750
II. Expenses
31,870
25,235
Program
2,946.928
3,193,761
General and Administrative
445,185
800,440
Marketing and Development
1,221,207
1,012,315
Total Expenses
4,613,320
5,006,515
III. Operating Surplus/Deficit
31,870
25,235
(Income minus Expenses)
IV. Fund Balance at
1,494,703
Be innin of Year
V. Accumulated Surplus (Deficit)
1,526,573
(Add lines III and IV)
VI. In -Kind Contributions
10,810
15,000
(attach schedule if greater than 10%
of total income
9. I verify that the information submitted in this application is true and correct to the best of my
knowledge.
Name llfi_Title}
�1
Signature t\\ ;J Date % �/