HomeMy WebLinkAboutC-7881-253 - Coronavirus Aid Relief and Economic Security (CARES) Act Grants ProgramAMENDMENT NO. ONE TO
GRANT AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND
Newport Beach Electric Boat Rentals Company
THIS AMENDMENT NO. ONE TO GRANTAGREEMENT ("Amendment No. One")
is made and entered into as of this 1st day of December, 2020 ("Effective Date"), by and
between the CITY OF NEWPORT BEACH, a California municipal corporation and
charter city ("City"), and Newport Beach Electric Boat Rentals Company, located at 3333 W Coast
Hwy Ste 201. Newport Beach, CA 92663 ("Grantee"), and is made with reference to the
following:
RECITALS
A. On the 1 st of November, 2020, City and Grantee entered into a Grant Agreement
("Grant Agreement") to implement the City of Newport Beach Small Business
Relief Grant Program ("Program").
B. The parties desire to enter into this Amendment No. One for City to provide to
Grantee additional funding in the amount of $1,150 based on the terms and
conditions set forth in this Amendment No. One, and to extend the term of the
Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. GRANT
Section 1.3 shall be added to the Agreement as follows:
1.3 Additional Grant Funds in the amount of One Thousand One
Hundred Fifty Dollars 00/100 ($1,150.00) ("Additional Grant Funds") shall be
provided to the Grantee under the following conditions:
1.3.1 Additional Grant Funds shall be provided to the Grantee in the
form of a check by the City. Grantee shall ensure check for Additional Grant
Funds is cashed no later than December 28, 2020.
1.3.2. Additional Grant Funds shall only be used for Approved Uses,
as defined by Section 3.1 of the Grant Agreement. Should Additional Grant
Funds not be used for Approved Uses, Grantee is to notify the City and
return the check to City no later than December 22, 2020.
1.3.3. Additional Grant Funds shall only be used on Approved Uses
that have been expended through December 22, 2020. Receipts and
records of such expenditures shall be retained and must differ from the
initial Grant Fund reimbursed uses and expenses reimbursed through other
CARES Act funding programs (such as Paycheck Protection Program,
Economic Injury Disaster Loan, County Assistance Programs, Newport
Beach CDBG Economic Development Grant Program).
Newport Beach Electric Boat Rentals Company Page 1
1.3.4. Records or receipts for Approved Uses made from the
Additional Grant Funds shall be retained by Grantee for 4 years, as required
per City's agreement with the County of Orange. Such records or receipts
shall be provided within 10 days of City's request.
1.3.4. Grantee's failure to provide records or receipts of Additional
Grant Funds within 10 days of City's request shall result in a liquidated
damages penalty payable to City in the amount of 150% of the Additional
Grant Funds.
1.3.4.1 Liquidated Damages. The Grantee and the City
hereto acknowledge and agree that the sums payable under
subsection 1.3 above shall constitute liquidated damages and not
penalties and are in addition to all other rights of the Investor,
including the right to call a default. The parties further acknowledge
that (i) the amount of loss or damages likely to be incurred is
incapable or is difficult to precisely estimate, (ii) the amounts
specified in such subsections bear a reasonable relationship to, and
are not plainly or grossly disproportionate to, the probable loss likely
to be incurred in connection with any failure by the Grantee, (iii) one
of the reasons for the City and the Grantee reaching an agreement
as to such amounts was the uncertainty and cost of litigation
regarding the question of actual damages, and (iv) the Grantee and
the City are sophisticated business parties and have had the
opportunity to consult with legal counsel regarding this provision.
2. TERM
Section 2 of the Agreement should be amended in its entirety and replaced with
the following:
"The term of this Agreement shall commence on the Effective Date and shall
continue in full force and effect until December 30, 2020, unless terminated earlier as
provided herein."
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.
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IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: DEC 16 2020
Aaron C. Harp
City Attorney
CITY OF NEWPORT BEACH,
a California municipal corporation
Date: DEC 17 2020
By: _
c . Leung
Manager
G
ATTEST: GRANTEE: Newport Beach Electric Boat Rental
Date: DEC 2 2 2020_ , a California corporation or LLC or
sole proprietor
Date: Dec 4, 2020
By: _ By:4ncr v va!G 0 L3aO PST)
Leilani I. Brown Andrew Navarro
City Clerk
CFO
[END OF SIGNATURES]
Newport Beach Electric Boat Rentals Company Page 3
GRANT AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND
Newport Beach Electric Boat Rentals Company
This Grant Agreement ("Agreement") is entered into this 1 day of
November, 2020 ("Effective Date"), by and between the City of Newport Beach, a
California municipal corporation and Charter City ("City"), and Newport Beach Electric Boat Rentals Corn l
located at M. o11tHwy111.1�1,Newport Beach, CA92663 ("Grantee"). City and Grantee are at times individually
referred to as "Party" and collectively as "Parties" herein.
RECITALS
A. The City of Newport Beach Small Business Relief Grant Program ("Program") will
provide one-time funding to small businesses located within the city that need
financial assistance to aid in their recovery from the temporary loss of revenue due
to the COVID-19 public health emergency.
B. Grantee acknowledges it has reviewed the Small Business Relief Grant Program
Guidelines ("Guidelines"), attached hereto as Exhibit A and incorporated herein by
reference.
C. Grantee requested a grant from the City for the Small Business Relief Grant
Program by submitting a Grant Application ("Grant Application").
D. As a condition to accepting grant funds from Program, Grantee agrees to abide by
all terms and conditions set forth in this Agreement.
NOW, THEREFORE, the Parties agree as follows:
1. GRANT
1.1. City awards to Grantee Grant Funds in the amount of $7,500 as requested by
Grantee in the Grant Application attached hereto as Exhibit B 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 in accordance with Small
Business Relief Grant Program Guidelines.
2. TERM
The term of this Agreement shall commence on the Effective Date and shall
continue in full force and effect until December 1, 2020, 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") -
Newport Beach Electric Boat Rentals Company: DBA- OC Boat Rentals Page 1
3.1.1. The Grant Funds shall be expended solely for the purposes provided in
Exhibit A and must be incurred during the period of March 1, 2020 and
December 1, 2020;
3.1.2. Grant Funds may be used for working capital to cover the business's day-
to-day business operating expenses such as rent or lease payments,
mortgage payments, utility bills, payroll, inventory, technology,
marketing/communication, or other similar expenses that occur in the ordinary
course of operations. Grant Funds may also be used toward the cost of
obtaining personal protective equipment for staff and customers as well as
devices intended to enhance safety of staff and customers, such as hands-
free payment devices, sanitation supplies, and plexiglass partitions
(hereinafter "Eligible Expense");
3.1.3. 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. If the City determines Grant Funds have been used for an ineligible expense,
as determined in the sole discretion of the City, the Grantee shall pay for the
ineligible expenses out of their own funds and shall then use the Grant Funds for
an Eligible Expense or return the Grant Funds to the City.
3.4. Grantee and City expressly agree that any Grant Funds that are not used for
Eligible Expenses by December 1, 2020, shall be returned to City by the Grantee
by December 11, 2020, or within ten (10) days of the City notifying the Grantee
that the expenses are ineligible, as further set forth in Section 5.1.
3.5. Upon 72 hours' notice, Grantee
business to verify that Grant Funds
Program requirements.
will allow the City to inspect Grantee's
are being used in accordance with the
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 expenditure of the Grant Funds. Grantee shall make available to
City such Books and Records within ten (10) calendar days of the City's request.
4.2. Grantee will be responsible for providing documentation, including receipts, to
the City that accounts for how the entirety of the Grant Funds received were used
to fund Eligible Expenses according to the timelines specified in the Guidelines.
Newport Beach Electric Boat Rentals Company: DBA- OC Boat Rentals Page 2
Grantee shall provide any additional information or documentation related to these
expenditures requested by the City within ten (10) calendar days.
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 Application 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. Grantee agrees to exercise prudent financial management processes including
proper oversight of all assets, budget preparation, and timely reporting including
budget -to -actual -comparisons.
4.5. 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.
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 between March 1, 2020 and December 1, 2020,
Grantee shall notify the City in writing, and shall be obligated to return the Grant
Funds to City within ten (10) days.
M. 101Q4Lh10111aW-AIICkiI
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 misrepresentations by
Grantee, the expenditure of Grant Funds, the Application, or the Agreement
(including the negligent and/or willful acts, errors and/or omissions of the
Grantee, its principals, officers, agents, employees, vendors, suppliers,
Newport Beach Electric Boat Rentals Company: DBA- OC Boat Rentals Page 3
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 set forth in the 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. 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.
F.M:jae7:11 111mkI_Tr7_11►6,1MIamk,6*1a4*1
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.
Newport Beach Electric Boat Rentals Company: DBA- OC Boat Rentals Page 4
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: Newport Beach Electric Boat Rentals Company
Newport Beach Electric Boat Rentals Company
3333 W Coast Hwy Ste. 201, Newport Beach, CA 92663
10JERMINATION
10.1. The City may terminate this Agreement if it determines that the Grantee has
made any misrepresentations that relate in any way to the Application or
expenditure of Grant Funds by providing Grantee with three (3) calendar days'
notice of termination, in writing.
10.2. 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.
si `I&I IF_101171-1 N 111:2 ZIGIVA RI Is] ►1.1
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 and comply with all state and county guidance for re -opening.
Any dispute regarding this contractual agreement shall have a venue of Orange
County.
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.
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11.5. Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this Agreement and the Grant Application 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
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. Taxes. The City and Grantee expressly agree that the Grantee shall be
responsible for all taxes that are associated in any way to the Application of the
Grant Funds.
11.13. 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.
11.14. Authority to Bind. Each individual executing this Agreement represents and
warrants that such person is authorized to do so, and, that upon executing this
Agreement, this Agreement shall be binding and enforceable in accordance with its
terms upon the party for whom such person is acting.
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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:1V 2020_
By: --
Aaron C. Harp
City Attorney
ATTEST:
Date: ` � r. I7 WD
S
By.
Leilani I. Brown
City Clerk+$
CITY OF NEWPORT BEACH,
A California municipal corporation
Date: NOV 13 2020
By:
Gr e .. Leung
Cit anager
GRANTEE: 4
kf
(California Corporation
proprietorship)
Date: Nov 6, 2020
a
or LLC or sole
Andrew Navarro, CFO
Newport Beach Electric Boat Rentals Company
Attachment: Exhibit A: Small Business Relief Grant Program Guidelines
Exhibit B: Grantee's Application
[END OF SIGNATURES]
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Exhibits
Newport Beach Electric Boat Rentals Company: DBA- OC Boat Rentals
Small Business Relief Grant Program
Guidelines
Revised June 9, 2020
Table of Contents
Program Overview
Pg. 1
Eligibility
Pg. 1
Newport Beach Terms and Conditions
Pg. 2
Grant Amounts
Pg. 3
Funding Priority
Pg. 3
Eligible Activities
Pg. 3
Grant Application and Award Process
Pg. 4
Documentation Requirements
Pg. 6
Contacts
Pg. 7
Applications are due no later than Tuesday, June 16, 2020 at 5:30 p.m.
Revised Guidelines 6-9-20
Program Overview
The City of Newport Beach Small Business Relief Grant Program will provide one-time
funding to small businesses located within the city that need financial assistance to aid
in their recovery from the temporary loss of revenue due to the COVID-19 public
health emergency.
The County of Orange's Second Supervisorial District allocated more than $2.1
million of federal Coronavirus Relief Funds, made available through the Coronavirus
Aid, Relief and Economic Security Act (CARES Act), to the City to provide grants to
small businesses "to reimburse the costs of business interruption caused by required
closures and unemployment insurance costs related to the COVID-19 public health
emergency," if such costs are not otherwise reimbursed by the federal government.
The City Manager's Office will oversee the Small Business Relief Grant Program.
City staff is obligated to fulfill the terms and conditions of the funds as established by
the City Council, these program guidelines, and Federal and County regulations. The
City's consultant, the Orange County Small Business Development Center (OC
SBDC), will be responsible for program marketing and application processing and
approval.
Please carefully review these guidelines as successful applicants must submit
complete applications before the deadline; provide documentation that they meet the
eligibility requirements, terms and conditions; explain how the grant monies would be
used toward necessary COVID-19 related business expenses; and later provide
documentation demonstrating that the grant funding was used toward those
expenses.
If the number of qualifying applications submitted exceeds the amount of funding that
is available for disbursement, the City will implement a lottery system for all eligible
small businesses.
Eligibility
To be eligible to apply for the Small Business Relief Grant Program, a business must
demonstrate the need for financial support due to business interruption caused by the
COVID-19 public health emergency and the Stay at Home order. An applicant will need
to prove that their business has been affected by COVID-19 in one of the following ways:
• The business was deemed non-essential and was forced to shut down by the
state or local government;
• Sales from the business are down more than 25 percent compared to the
previous three months (Prior to March 1, 2020) or a comparable 3 -month period
in 2019.
Revised Guidelines Pg. 1
• The business has had to lay off at least one of its employees (full- or part-time
employee); or
• One or more of the employees in the business have contracted COVID-19, while
at work.
Newport Beach Terms and Conditions
Applicants must meet the following minimum requirements to be considered for grant
funding:
• The business must be a for-profit business and located within Newport Beach city
limits.
• The business must be legal and located in a commercial or industrial space.
• The business must be independently owned and operated, with the principal
office located within Newport Beach city limits.
• The officers of the business must reside in Orange County, California.
• The business must have an active Newport Beach business license for a
minimum of six (6) months, as of June 1, 2020.
• On March 1, the business must have had 30 or less full-time, or an equivalent
combination of full and part time employees (two part-time employees equal one
full-time employee), including the owner.
• The business must have average annual gross receipts of fifteen million dollars
($15,000,000) or less over the previous three years.
• The business must be in good standing with the City, meaning:
• It must be current on its business license fees or in good standing on its
payment plan;
• If applicable, it must be current on its business improvement district
assessment or in good standing on its payment plan;
• If applicable, it must have a valid Marine Activities Permit;
• It must not have any existing municipal code violations.
• The business must disclose whether they have received funding from the
Paycheck Protection Program (PPP) or an Economic Injury Disaster Loan
(EIDL). If a business received PPP or EIDL funds, it is still eligible to receive
City grant funds; however, priority will be given to applicants that have not
received funding through these programs.
• The business must follow the State's and/or County's re -opening guidance for
their industry.
• The business must submit an application and all required supporting
documentation.
Revised Guidelines Pg. 2
Grant Amounts
Applicants are eligible to receive a grant of up to $10,000 according to the following:
• Businesses with 5 or less employees are eligible for a grant up to $5,000.
• Businesses with 6-10 employees are eligible for a grant up to $7,500.
• Businesses with 11-30 employees are eligible for a grant up to $10,000.
Funding Priority
In an effort to provide assistance to businesses located in the City's commercial and
industrial areas, that provide services onsite, and that have been severely impacted by
the COVID-19 public health emergency, priority will be given to:
• Retail;
• Restaurants; and
Personal service establishments, specifically, hair salons and barber shops, nail
salons, day spas, and small gyms / health clubs.
Qualified applications from these three types of businesses will be given priority during
the grant allocation process in the following order:
The business has NOT received any other federal assistance under the
Coronavirus Air, Relief and Economic Security Act (CARES Act) programs such
as an Economic Injury Disaster Loan (EIDL) or under the Paycheck Protection
Program (PPP).
2. The business received an EIDL.
3. The business received assistance under the PPP.
4. The business received an EIDL and assistance under the PPP.
Any remaining grant monies will be allocated to any small business that meets the
eligibility criteria, terms and conditions.
Eligible Activities
The grant may be used for working capital to cover the business's day-to-day business
operating expenses such as rent or lease payments, mortgage payments, utility bills,
payroll, inventory, technology, marketing/communication, or other similar expenses that
occur in the ordinary course of operations. Grant monies may also be used toward the
cost of obtaining personal protective equipment for staff and customers as well as
devices intended to enhance safety of staff and customers, such as hands-free payment
devices, sanitation supplies, and plexiglass partitions. To be eligible under this grant
program, expenses must have been incurred after March 1, 2020 and all grant funds
awarded must be fully expended on eligible activities by December 1, 2020.
Revised Guidelines Pg. 3
Applicants will complete a use of funds form that will detail whether the funds are
to reimburse the applicant for past expenses and/or how the funds will be spent
within their business.
• Applicants must sign and verify that the use of funds have been or will be spent
on eligible activities, such as those listed on page 3.
Applicants will be required to provide documentation verifying that the grant
funds were used toward credible business expenses related to the COVID-19
public health emergency. Any use of funding other than for an eligible activity is
strictly prohibited. The business must reimburse the program for any expenses
found to be not in compliance with the program's list of eligible activities.
The City may inspect the business premises to verify the grant monies are being used in
accordance with the program requirements.
Business expenses that have been reimbursed or paid for with money from the federal
government are not eligible for the Small Business Relief Grant Program.
Grant Application and Award Process
The grant application and award process will be as follows:
The program will be advertised and promoted from June 4 to June 16, 2020. OC
SBDC will offer two webinars to help small business owners better understand
the program and complete their applications. The webinars will be held on
Tuesday, June 9 at 4 p.m. and Thursday, June 11 at 10 a.m. Please .e ister
here.
2. The application period will be open from Friday, June 12 at 8 a.m. to Tuesday,
June 16 at 5:30 p.m. Late applications will not be accepted. Applications can be
submitted:
a. Online at www.newportbeachca.gov/businessgrants;
b. Via email to economicdevelopment@newportbeachca.gov; or
c. In-person at Newport Beach City Hall, City Manager's Office, Bay 2E,
100 Civic Center Drive, Newport Beach, 92660.
3. Applicants must self -certify that the funds will only be used for expenses
permitted under the program.
4. OC SBDC will review the applications. If the number of qualifying applications
received exceeds the amount of grant monies available, OC SBDC will use a
lottery system to randomly select and rank the applications. The lottery will be
held on Friday, June 19, at 4 p.m. Funding priority will be given to retail,
restaurants and personal services establishments (hair salons and barber shops,
Revised Guidelines Pg. 4
nail salons, day spas, small gyms/health clubs) as explained under the Funding
Priority section.
5. OC SBDC consultants will work with the selected applicants, in the order they are
ranked, to collect the required documentation. The applicant will be given 14
calendar days to produce the requested documentation. If the documents are not
received by the end of the 14 -calendar -day period, the application will be
disqualified.
6. Once the initial documentation is received and approved, the City will: (1) release
50 percent of the payment to the grant recipient, if the applicant has not already
incurred the expenses; or (2) if the applicant has already incurred the expenses
and submitted proof the expenses qualify for eligible activities, the City will
release up to 100 percent of the grant payment.
7. The grant recipient must agree to an inspection by the City intended to verify that
the grant monies are being used in accordance with the program requirements.
8. As noted above, all eligible expenditures (for any grant amount awarded) must
be completed by December 1, 2020. In general, applicants will fall into two
categories. The first category of applicants will be those applicants who have
already incurred eligible expenses, submitted documentation that has been
approved, and who have been reimbursed 100 percent of the grant amount.
The second category of applicants will be those applicants who have yet to incur
eligible expenses. For those applicants in the second group, as noted above, the
City will advance 50 percent of the grant amount. To be eligible to receive the
remaining grant amount (i.e. the remaining 50 percent), the City must receive
sufficient documentation that the applicant spent the money on eligible activities
within 45 calendar days of the payment to the applicant of the initial grant
amount. Failure to spend the money and submit sufficient documentation within
45 calendar days will result in the remaining portion of the grant money being
awarded to another applicant. If an applicant spends the initial grant money and
submits documentation, that is approved, within 45 days, the City will release the
remaining 50 percent of the grant amount. The grant recipient will have until
December 1, 2020 to spend the remaining grant amount on eligible activities and
shall submit all documentation related to these expenditures by December 11,
2020.
9. The grant recipient will be responsible for providing documentation, including
receipts, to the City that accounts for how the entirety of the grant monies
received were used to fund eligible expenses and the applicant will provide the
City with any additional information or documentation related to these
expenditures, if requested by the City.
Revised Guidelines Pg. 5
Documentation Requirements
An OC SBDC representative will contact each selected applicant to discuss and collect
all required documentation. The documentation will be used to verify the business
meets the program eligibility requirements, terms and conditions as provided in these
guidelines.
Documentation requirements will vary depending upon how the applicant chooses to
demonstrate business interruption due to the COVID-19 pandemic (as described in the
Eligibility section).
• Applicants seeking to demonstrate a decline in sales of more than 25 percent
compared to the previous three months (Prior to March 1, 2020) or a comparable
3 -month period in 2019 will be asked to provide:
o Monthly financial records (P&L, Balance Sheet) for the three months
ended May 2020 (Mar 2020, April 2020, May 2020) and the prior three
months, ended February 2020 (Dec 2019, Jan 2020, Feb 2020).
KO
o Monthly financial records for the three months ended May 2020 (Mar
2020, April 2020, May 2020) and for the three months ended May 2019
(Mar 2019, Apr 2019, May 2019).
• Applicants seeking to demonstrate that the business has had to lay off at least
one of its employees (full- or part-time employee) will be asked to provide:
o 2019 Form 940 and 2020 YTD Form(s) 941;
Applicants can also provide the City with documentation that the business was
considered non-essential by the Federal or State Government and was forced to
shut down.
In addition, all applicants will be asked to provide the following:
• Proof that the business has had an active Newport Beach business license for a
minimum of six (6) months prior to June 1, 2020;
• 2019 business tax returns, or 2018 if 2019 has not been filed;
• Business's two most recent bank statements;
• Copy of the pages of the lease/grant that includes commercial/industrial business
address:
o For leases, documentation must show the name of the lessee and lease
term.
Revised Guidelines Pg. 6
o For grant deed, documentation must show the name of the property
owner.
OC SBDC may request additional documents if necessary to verify the business meets
the program eligibility requirements, terms and conditions.
Contacts
If you have questions about the Small Business Relief Grant Program,
please contact:
a
City of Newport Beach
City Manager's Office
949-644-3001
economicdevelopment@newportbeachca.gov
newportbeachca.gov/businessgrants
AM ERICA�S
For assistance in completing the Small Business Relief Grant application BD
and to set up a one -on- one consultation (at no cost), please contact:
Orange County Small Business Development Center
1-800-616-7232
midaniel@fullerton.edu
Revised Guidelines Pg. 7
OC Boat Rentals
`c�EWPpRT Newport Beach Small Business Relief Grant Program
hU S The City of Newport Beach Small Business Relief Grant Program provides one-time funding to small businesses located
Y within the city that need financial assistance to aid in their recovery from the temporary loss of revenue due to the COVID-
caciFORN�� 19 public health emergency. Qualified Newport Beach businesses may receive grants of up to $10,000, depending on the
number of employees. Precedence will be given to businesses that provide on-site services, including retail businesses,
restaurants, and personal service establishments, specifically, hair salons and barber shops, nail salons, day spas, and
small gyms and health clubs.
Application period is open from Friday, June 12 at 8 a.m. to Tuesday, June 16 at 5:30 p.m.
Late applications will not be accepted. Applications can be submitted:
• Online at newportbeachca.gov/b usinessgrants
• Via email to economicdevelopment@newportbeachca.gov
• In-person at Newport Beach City Hall, City Manager's Office, Bay 2E, 100 Civic Center
Drive, Newport Beach, 92660
Name of Applicant
Street
Phone Number Email Address
City State ZIP
Email Address
ANDREW NAVARRO
1048 Irvine Ave. Ste. 1067
949278-5396 andy@ocboatrental.com
Newport Beach, CA 92663
andy@ocboatrental.com
Name of the Business
OC Boat Rentals
Legal Entity Name
Newport Beach Electric Boat Rental Company
Business Employer Identification Number (EIN)
Street
3333 West Coast HWY, 201
City State ZIP
Newport Beach, CA 92663
Phone Number Email Address
949534-6227 andy@ocboatrental.com
Year Business Started
2016
Website
http://www.ocboatrental.com
Type of Business
Boat Rentals
What is your for-profit business structure?
(Non -profits are ineligible).
S -Corporation
Total Grant Amount Requested (Up to $10,000)
$7,500.00
Businesses with 5 or less employees are eligible for a grant up to $5,000.
0
Businesses with 6-10 employees are eligible for a grant up to $7,500.
7500
Businesses with 11-30 employees are eligible for a grant up to $10,000.
0
City Manager's Office / 949-644-3001 economicdevelopment@newportbeachca.gov
Need Help? Contact the Small Business Development Center / 1-800-616-7232 ociesmallbusiness.org
Do you have a current business license with the city of Newport
Newport Beach Small Business Relief Grant Program
p �m
The City of Newport Beach Small Business Relief Grant Program provides one-time funding to small businesses located
vk n
within the city that need financial assistance to aid in their recovery from the temporary loss of revenue due to the COVID-
r
19 public health emergency. Qualified Newport Beach businesses may receive grants of up to $10,000, depending on the
CgC�FOFIN��
number of employees. Precedence will be given to businesses that provide on-site services, including retail businesses,
you made all payments due and owing to the applicable Business
restaurants, and personal service establishments, specifically, hair salons and barber shops, nail salons, day spas, and
Improvement District?
small gyms and health clubs.
Do you have a current business license with the city of Newport
Yes
Beach and have you had it for at least six (6)months (active as of
Thunder Gibbs;
Keagan Friel
December 1, 2019)?
0
Is your business in a Business Improvement District (Corona del Mar
No
BID or Newport Beach Restaurant Association BID) and, if so, have
you made all payments due and owing to the applicable Business
Improvement District?
Is your business in one of the following industries? Check one.
No
How has your business been impacted by COVID-19? (Mark all that
The business was deemed non-essential and has been
apply):
forced to shut down by the state or local government,
Sales from the business are down more than 25%
compared to the previous three months (Prior to March
1, 2020) or a comparable 3 -month period in 2019, The
business has had to lay off at least one of its employees
(full- or part-time employee)
Does your business have 30 or less full-time, or an equivalent
Yes
combination of full and part-time employees (two part-time
employees equal one fulltime), including the owner?
Business Owner/s:
Tyler Mangum; Garrett
Wicklas; Andrew Navarro
Full -Time
Thunder Gibbs;
Keagan Friel
Part -Time
0
Total
7
Total Revenue 2019 and 2020
759847
Revenue 2019
593016
Revenue 2020
166831
City Manager's Office 949-644-30011 economicdevelopment@newportbeachca.gov
Need Help? Contact the Small Business Development Center 1-800-616-7232 ociesmallbusiness.org
Newport Beach Small Business Relief Grant Program
�WPp�T
The City of Newport Beach Small Business Relief Grant Program provides one-time funding to small businesses located
C,
within the city that need financial assistance to aid in their recovery from the temporary loss of revenue due to the COVID-
r� n
?+� 19 public health emergency. Qualified Newport Beach businesses may receive grants of up to $10,000, depending on the
U e. _ number of employees. Precedence will be given to businesses that provide on-site services, including retail businesses,
oRJ restaurants, and personal service establishments, specifically, hair salons and barber shops, nail salons, day spas, and
small gyms and health clubs.
As of this date, has your business received any funding through the Economic Injury Disaster Loan (EIDL) or the
Paycheck Protection Program (PPP)? If you have applied for either or both of the programs, but have not
received any funding, please check no.
If you have applied for either or both of the programs, but
have not received any funding, please check no.
Yes
SBA Economic Injury Disaster Loan Funding?
No
How much?
0
SBA Economic Injury Disaster Loan Advance Funding?
No
How much?
Yes
SBA Payroll Protection Program Funding?
Yes
How much?
29412
Rent
7500
Payroll
0
Commercial
0
Newport Beach, CA?
Do the officers of the business reside in Orange County, CA?
Yes
Mortgage Payment
Yes
Technology
0
Marketing/
0
Inventory
0
As used herein good standing means that your business is current on its business license fees or in good
Communications
assessment or is in good standing on its payment plan; if applicable, you have a valid Marine Activities
(PPE) Personal
0
Utilities
0
Protective
Equipment
Other Operating Expenses (must be approved by the
0
City in advance prior to expenditure)
Total
7500
Are you a for-profit business?
Yes
Is your business located in a commercial or industrial space?
Yes
Is your business independently owned and operated, with the principal office located in
Yes
Newport Beach, CA?
Do the officers of the business reside in Orange County, CA?
Yes
Do you hold the master lease or mortgage deed for your business?
Yes
Does your business have average annual gross receipts of fifteen million dollars ($15,000,000)
Yes
or less over the previous three years?
Is your business in good standing with the City of Newport Beach?
Yes
As used herein good standing means that your business is current on its business license fees or in good
standing on a payment plan; if applicable, your business has paid its business improvement district
assessment or is in good standing on its payment plan; if applicable, you have a valid Marine Activities
Permit for your business; and your business does not have any existing municipal code violations.
Have you followed all state and county re -opening guidance for your industry?
Yes
City Manager's Office 949-644-3001 economicdevelopment@newportbeachco.gov
Need Help? Contact the Small Business Development Center 1-800-616-7232 ociesmallbusiness.org
Newport Beach Small Business Relief Grant Program
PRT
The City of Newport Beach Small Business Relief Grant Program provides one-time funding to small businesses located
O @�y
within the city that need financial assistance to aid in their recovery from the temporary loss of revenue due to the COVID-
Pj
=
19 public health emergency. Qualified Newport Beach businesses may receive grants of up to $10,000, depending on the
Date
number of employees. Precedence will be given to businesses that provide on-site services, including retail businesses,
c4k1poft �A
restaurants, and personal service establishments, specifically, hair salons and barber shops, nail salons, day spas, and
small gyms and health clubs.
Acknowledgment: I/We understand that this grant is being provided by the City of Newport Beach based solely
upon the information that you have provided in this application. I am also verifying that there are no outstanding
tax liens or legal judgments against the business.
Certification: I/We also agree that this application authorizes the City to verify all sources of incomes and/or including,
but limited to, the submittal of a request to the Employment Development Department/Unemployment
Agency to verify any unemployment benefits currently being received by the business owner. I/We also agree that
this form authorizes the City to verify the business owner(s) Small Business Administration (SBA) loans/ grants
received for this business in connection with coronavirus pandemic and/or CARES Act.
By signing below, I certify that the above statements included in this application are true and correct to the best
of my knowledge. I understand that a false statement may disqualify me from benefits.
Owner Signature
Andrew Navarro
Date
06/15/2020
Co -Owner Signature
Tyler Mangum
Date
06/15/2020
City Manager's Office 949-644-3001 economicdevelopment@newportbeachco.gov
Need Help? Contact the Small Business Development Center 1-800-616-7232 ociesmallbusiness.org