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HomeMy WebLinkAboutC-7444-5 - Newport Beach Library Lecture Hall Naming Rights Donation AgreementAMENDMENT NO. ONE TO NEWPORT BEACH LIBRARY LECTURE HALL DONATION AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH, THE NEWPORT BEACH PUBLIC LIBRARY FOUNDATION, AND WILLIAM A. WITTE & KEIKO SAKAMOTO THIS AMENDMENT NO. ONE TO THE NAMING RIGHTS DONATION AGREEMENT ("Amendment No. One") is made and entered into as of this I2 D_I day of 2024, ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), the Newport Beach Public Library Foundation, a California nonprofit public benefit corporation ("Foundation") and, William A. Witte and Keiko Sakamoto (collectively, "Donors"), made with reference to the following: RECITALS A. On September 12, 2022, the City, Foundation, and Donors entered into a Naming Rights Donation Agreement ("Agreement") for the Donors to make a charitable gift to the City towards the Library Lecture Hall subject to the terms and conditions set forth in the Agreement. B. The parties desire to enter into this Amendment No. One to update Exhibit A that was approved at the January 9, 2024 City Council meeting. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING Exhibit A to the Agreement shall be amended in its entirety and replaced to include the attached Amendment No. Three to the Memorandum of Understanding. [SIGNATURES ON FOLLOWING PAGE] IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be executed on the dates written below. APPROVED AS TO FORM: CITY TTORNEY'S OFFICE Da J614,��� By: AaroQrney . Harp City ATTEST: Date: '� �• ma r Leilani I. Brown City Clerk ��T ._1.1 FOR® DONORS: Date: as William A. Witte t Keiko akamoto z CITY: CITY OF NEWPORT BEACH, a California municipal corporation Date: l' 17 1 7-6 y—�- G c K. Leung Manager FOUNDATION: THE NEWPORT BEACH PUBLIC LIBRARY FOUNDATION, a California non-profit public benefit corporat 0n D ate'. ja .x a ee- I By. / rold D. Ka' Chief xecutive Officer Date: C vl" ca I A)��,A_ By: Ma yn Kra Secretary [END OF SIGNATURES] Attachments: Exhibit A — Third Amendment to Memorandum of Understanding Library Lecture Hall Naming Rights Donation Agreement Page 2 THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH PUBLIC LIBRARY FOUNDATION RELATED TO FUNDRAISING FOR THE LECTURE HALL PROJECT This Third Amendment to Memorandum of Understanding ("Third Amendment") is entered into as of the 9 day of Ja"2024 ("Effective Date") by and between the City of Newport Beach, a California municipal corporation and charter city ("City") and the Newport Beach Public Library Foundation, a California nonprofit public benefit corporation ("Foundation"). City and Foundation are at times individually referred to herein as "Party" and collectively as "Parties." RECITALS A. The Foundation and City are Parties to that certain Memorandum of Understanding entered into as of November 30, 2021, which was amended by First Amendment to Memorandum of Understanding entered into as of September 12, 2022, subsequently amended by Second Amendment to Memorandum of Understanding entered into as of November 15, 2022, and further amended by this Third Amendment to Memorandum of Understanding (collectively referred to herein as, the "MOU" or "Agreement"). B. As contemplated in Section 2.4 of the MOU, the Project was competitively bid in September 2023 based upon construction drawings prepared by RCA (the "Construction Drawings") and the Estimated Project Costs based upon the lowest responsible bid and other expenses already incurred has nearly doubled. C. To complete the Project, the City's Commitment and Foundation's Commitment must increase from Six Million Five Hundred Thousand Dollars and 00/100 ($6,500,000.00) to Eleven Million Seven Hundred Forty -Three Thousand Nine Hundred Sixty -Eight Dollars and 00/100 ($11,743,968.00) respectively. D. The City has expended approximately Seven Hundred Fifty -Eight Thousand Seven Hundred Dollars and 00/100 ($758,700.00) on design, environmental and permitting for the Project. Additionally, to complete the Project, the City must enter a construction contract without the Foundation's Commitment fully secured. THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 1 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION E. As a result, the Foundation and City acknowledge and agree to amend the terms of the MOU to complete the Project, as provided herein. F. The Parties desire to reconfirm that the Library Lecture Hall will be a City owned facility and that it will host a variety of users including the Foundation programming consistent with the Foundation's mission statement and therefore it will hereinafter be referred to as the Lecture Hall ("Lecture Hall"). The Foundation further confirms that the priority of users of the Lecture Hall, other than uses by the Foundation, is not a matter over which the Foundation will have any control other than the Foundation's use of the Lecture Hall as provided in Section 3.6. G. The City and Foundation have conferred as contemplated by the MOU and have concluded that the Low Bid should be accepted and the MOU should be amended to (i) increase the Foundation Commitment and City Commitment in order to fully fund the Project and (ii) reflect the willingness of the City to award the Construction Contract and proceed with construction of the Project subject to the Foundation raising additional funds until the Foundation has met its revised Foundation Commitment and other amendments provided herein. NOW, THEREFORE, for and in consideration of the mutual covenants and promises set forth herein, the City and the Foundation do hereby agree as follows: 1. Section 1.1.2 shall be amended in its entirety to read as follows: "2. Furniture, fixtures and equipment which is limited to chairs, a podium, audio-visual equipment, and physical items identified in the Construction Drawings ("FF&E")." 2. Section 1.3 of the MOU shall be amended in its entirety to read as follows: 1.3 Project Costs, The Parties agree that the total Project costs based upon the Conceptual Design prepared by RCA and approved by the City Council is estimated to be Twenty -Three Million Four Hundred Eighty -Seven Thousand Nine Hundred Thirty -Five Dollars and 00/100 ($23,487,935.00) (the "Estimated Project Cost"). The Estimated Project Cost includes all design related costs, including but not limited to the costs of Phases I -IV, and all anticipated costs of obtaining permits, construction of the Project based upon the lowest responsible bid of Nineteen Million Sixty -Eight Thousand Dollars and 00/100 ($19,068,000.00) (the "Low Bid") received from AMG & Associates ("Low Bidder"), management of construction, inspections, other soft costs, FF&E and a contingency of One Million Nine Hundred Six Thousand THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 2 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION Eight Hundred Dollars and 00/100 ($1,906,800.00) representing ten percent (10%) of the Low Bid for construction of the Project." 3. Section 1.4 is hereby deleted in its entirety. 4. Section 1.5 shall be amended in its entirety to read as follows: "1.5 Change Orders. The City may unilaterally approve change orders related to construction issues at the Project that occur during construction and that the City deems necessary (a "Necessary Change Order"). If the City or the Foundation desire change orders to the design of the Lecture Hall or FF&E beyond what is identified in the Construction Drawings as of the effective date of this Third Amendment and which would create a cost in excess of the Estimated Project Cost, the Party requesting the Change Order shall notify the non -requesting Party of such desired change and shall provide all additional funds necessary to implement the Change Order over and above the requesting Party's financial commitment set forth in Sections 2.1 and 3.1 respectively within seven (7) calendar days." 5. Section 2.1 shall be amended in its entirety to read as follows: "2.1 The Foundation Commitment. The Foundation expressly agrees that it shall collect donations in the amount of fifty percent (50%) of the Estimated Project Cost or Eleven Million Seven Hundred Forty -Three Thousand Nine Hundred Sixty -Eight Dollars and 00/100 ($11,743,968.00), whichever is less (the "Foundation Commitment") for the Project. The Foundation shall place Seven Million One Hundred Thousand Dollars and 00/100 ($7,100,000.00) in escrow on the date set forth in Section 2.4 below. The remainder of the Foundation Commitment in the amount of Four Million Six Hundred Forty -Three Thousand Nine Hundred Sixty -Eight Dollars and 00/100 ($4,643,968.00) ("Remainder of Foundation Commitment") shall be paid to the City within two (2) years of Effective Date of this Third Amendment or prior to the City Council adoption of the notice of completion of construction of the Lecture Hall in accordance with California Civil Code Section 9200 et seq. ("Remainder of Foundation Commitment Final Payment"), whichever occurs later. The Foundation agrees that it shall take appropriate legal action to collect all outstanding pledges." 6. Section 2.4 shall be amended in its entirety to read as follows: "2.4 Bidding; Payment of Donations. The City completed construction drawings, obtained required permits, placed the Project out to bid as a public works project, notified the Foundation of the date, time and place that the bids received for the Project were opened by the City, invited representatives of the Foundation to attend the bid opening, notified the Foundation of the City Council study session held on THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 3 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION November 14, 2023, and the January 9, 2024, meeting wherein the City Council will consider award of the construction contract to the lowest responsible bidder. The Foundation shall place Seven Million One Hundred Thousand Dollars and 00/100 ($7,100,000.00) ("Escrowed Funds") of the Foundation Commitment into an escrow account at First American Title Company in Santa Ana, CA or other escrow company agreed to between the Parties ("Escrow Holder") not later than Friday, January 19, 2024. At such time as the City (i) thereafter demonstrates to the Foundation that the City has appropriated the City's Commitment set forth in Section 3.1 and (ii) has awarded the contract, finalized negotiations with the contractor and entered into a construction agreement for the Project wherein the City is legally bound to pay for and construct the Project (the "Release of Funds Conditions"), the Escrowed Funds shall be disbursed to the City. Upon the occurrence of the Release of Funds Conditions, Foundation agrees to promptly execute instructions if requested by Escrow Holder as a condition to the disbursement of the Escrowed Funds to the City. Notwithstanding the foregoing, in the event of the termination or expiration of this MOU prior to the City entering into a construction contract for construction of the Project, the Escrowed Funds shall be returned to Foundation. Upon such termination or expiration of this MOU, the City agrees to promptly execute instructions if requested by Escrow Holder as a condition to the disbursement of the Escrowed Funds to the Foundation. Escrow fees of Escrow Holder shall be paid out of the Escrowed Funds." 7. Section 2.5 shall be amended in its entirety to read as follows: "2.5 Future Protect Enhancements. In the event the Foundation believes that certain enhancements or upgrades of the Lecture Hall or Bamboo Courtyard would be worthy of financial support of the Foundation following the Foundation's full payment of the entire Foundation Commitment, the City will work with the Foundation to implement those enhancements or upgrades desired by the Foundation that are reasonably acceptable to the City provided the Foundation pays the entire cost of any project enhancement." 8. Section 3.1 shall be amended in its entirety to read as follows: "3.1 City's Commitment. The City has earmarked, and through this MOU commits to pay up to a maximum of fifty percent (50%) of the Estimated Project Cost or Eleven Million Seven Hundred Forty -Three Thousand Nine Hundred Sixty -Eight Dollars and 00/100 ($11,743,968.00) whichever is less (the "City's Commitment") for the Project." 9. Section 3.6 shall be amended in its entirety to read as follows: THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 4 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION "3.6 Use of Lecture Hall. The Lecture Hall shall be owned and controlled by the City. Notwithstanding the foregoing, the Foundation shall have a right of first use of the Lecture Hall not to exceed fifty (50) days each fiscal year which may be exercised by providing the City with not less than six (6) months prior written notice bi-annually on July 1 and January 1. Use of the Lecture Hall by the Foundation shall at all times be subject to the Declaration of Special Land Use Restrictions, as amended, which are recorded on the Property. Any additional days requested by the Foundation will be evaluated by the City in coordination with all other requested uses and events. In the event of default in paying the Remainder of Foundation Commitment Final Payment by the deadline set forth in Section 2.1, the right of first use provided herein, excluding any Foundation events already booked, shall be suspended until the Remainder of Final Payment of Foundation Commitment is paid in full ("Cure Period"). During the Cure Period, the portion of the Foundation's annual endowment fund allocated to the Newport Beach Public Library, shall be paid to the City towards the Remainder of Final Payment of Foundation Commitment until the Foundation Commitment is paid in full. In order to help defray on -going costs of the Lecture Hall, the Foundation shall contribute to the City for each use by the Foundation of the Lecture Hall the lesser of (a) the per diem cost of Lecture Hall operations for the first year of use as determined by the City's cost study; (b) the lowest rate charged by the City for use of the Lecture Hall by any third party; or (c) $700. Following the first year of the availability of the Lecture Hall for program use, this sum shall increase annually by the CPI - All Items (not to exceed 5% in any year)." 10. Section 4 shall be amended in its entirety to read as follows: "Subject to the provisions of Section 11 below, the term of this MOU shall commence upon mutual execution of this MOU and shall continue until the sooner to occur of (i) completion of the Project and full payment of the Foundation Commitment to the City or (ii) five (5) years from the date of this agreement (the "Term"). Provided, however, once construction of the Project has commenced and for so long as it is being continuously pursued, this MOU shall remain in effect until construction is completed and the Foundation Commitment is paid to the City. If at the end of the Term, construction of the Project has not commenced, this MOU shall terminate regardless of any design work already completed or any funds expended by either party. However, the Parties may extend the term of this MOU by mutual written consent and an amendment to this MOU. The provisions of Section 2.5, Section 3.6, Section 11.5 and Section 12 of this MOU shall survive the expiration or earlier termination of this MOU." 11. Section 12.3 shall be amended in its entirety to read as follows: "Other Naming Opportunities. In addition to the naming rights of the Named Donor, the City agrees that the Foundation may offer naming rights to the Bamboo THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 5 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION Courtyard, the lobby, the green room, the audio-visual booth at the rear of the Lecture Hall, the auditorium, audience seats, and a donor wall subject to prior review and approval of the City Council and execution of a Named Donor Agreement." 12. Section 13.1 shall be amended in its entirety to read as follows: "13.1 Compliance With all Laws. Foundation shall at its own cost and expense ensure that the Foundation entering into the MOU and any amendments comply with its obligations under all applicable statutes including, but not limited to, California Business and Professions Code Section 17510.8 or other statutes related to charitable contributions, ordinances, regulations and requirements of all federal, state, county or municipal entities including, but not limited to any interpretations or approvals by the California Attorney General Charitable Trust Division related to its obligations under this MOU." 13. Except as amended by this Third Amendment, the MOU shall remain in full force and effect. 14. This Third Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute the same instrument. [SIGNATURES ON NEXT PAGE] THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 6 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: By: Aaro C. Harp as City Attorney o\ 00 ATTEST: Date:�.`t By: Leilani I. Brown City Clerk P'�,wpnr CITY OF NEWPORT BEACH, a California municipal corporation Date: /`'f'�` Will O'Neill Mayor FOUNDATION: Newport Beach Public Library Foundation, a California Nonprofit Corporation z_'C'> ief Executive Officer Date: By. Marilyn Ki Secretary [END OF SIGNATU THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 7 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION 1 7' NEWPORT BEACH LIBRARY LECTURE HALL ? NAMING RIGHTS DONATION AGREEMENT BETWEEN r THE CITY OF NEWPORT BEACH, THE NEWPORT BEACH PUBLIC LIBRARY V FOUNDATION, AND WILLIAM A. WITTE & KEIKO SAKAMOTO THIS NAMING RIGHTS DONATION AGREEMENT ("Agreement") is made and entered into by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), the Newport Beach Public Library Foundation, a California nonprofit public benefit corporation ("Foundation"), and William A. Witte and Keiko Sakamoto (collectively, "Donors") made with reference to the following: RECITALS A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. The Foundation is duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and its articles of incorporation and bylaws. C. The Foundation and the City entered into a Memorandum of Understanding, which was amended on August 23, 2022, to fund and construct a lecture hall located at 1000 Avocado, Newport Beach, California ("Library Lecture Hall") to accommodate library, cultural, educational, informational, entertainment, civic, and community focused events to serve the community ("Amended Memorandum of Understanding"). The Donors acknowledge receipt of a copy of the Amended Memorandum of Understanding, which is attached hereto as Exhibit "A" and incorporated herein by reference. D. The Amended Memorandum of Understanding authorizes the Foundation to offer the right to a donor to place the name of the donor, donor's spouse, or donor's family ("Named Donor") at the location defined in Section 3.1 of this Agreement based upon a contribution by the Donors of an amount specified in Section 1.1 of this Agreement and subject to the City's absolute discretion and approval ("Naming"). E. The Donors wish to make a charitable gift to the Foundation towards the construction of the Library Lecture Hall subject to the terms and conditions set forth in this Agreement and the Amended Memorandum of Understanding. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. DONORS' SUPPORT OF CONSTRUCTION OF LIBRARY LECTURE HALL 1.1 Subject to the terms of this Agreement and the Amended Memorandum of Understanding, Donors hereby pledge a gift in the amount of $4,000,000 to the Foundation ("Gift") for the exclusive use by the City and the Foundation for the construction of the Library Lecture Hall. 1.2 The Gift provided by the Donors under this Agreement shall be payable to the Foundation at least two (2) business days prior to the date by which the City requires the Foundation to place the Foundation Commitment (as that term is defined in Section 2.1 of the Amended Memorandum of Understanding) into escrow pursuant to the terms and conditions of Section 2.4 of the Amended Memorandum of Understanding. For the avoidance of doubt, the date on which the Gift is payable to the Foundation under this Section 1.2 shall be referred to as the "Gift Donation Deadline." Notwithstanding the foregoing, the Foundation must provide Donors with at least ten (10) days' prior written notice of the Gift Donation Deadline. 1.3. Because the Donors are relying on the City to adopt the Amended Memorandum of Understanding before the Donors enter this Agreement, this Agreement will be effective, therefore, only upon the later to occur of the date on which the City adopts the Amended Memorandum of Understanding or the date all of the parties execute the Agreement (the "Effective Date"). 2. USE OF THE GIFT 2.1 The Foundation and the City shall use the Gift exclusively to pay for the "Actual Project Costs" (as that term is defined in Section 1.3 of the Amended Memorandum of Understanding) of the Library Lecture Hall as generally described in Exhibit "B" attached hereto and incorporated herein by reference. Notwithstanding anything to the contrary in the foregoing sentence, for purposes of this agreement, "actual project costs" shall not include any costs incurred prior to the start of construction. For the avoidance of doubt, the Foundation may not deduct from the Gift any "Reasonable Expenses" (as that term is defined and as authorized in Section 2.2 of the Amended Memorandum of Understanding). Additionally, neither the Foundation nor the City may otherwise use any amount of the Gift to pay for any other expenses that are not Actual Project Costs. The Foundation and the City acknowledge that the Donors are relying on the Foundation's and the City's respective promises to use the Gift exclusively for Actual Project Costs of the Library Lecture Hall in determining whether to proceed with making the Gift. Therefore, the City and the Foundation shall return to the Donors the entire Gift in the event either (i) the City does not proceed with construction of the Library Lecture Hall or (ii) the City proceeds with construction of the Library Lecture Hall but does not complete such construction within five (5) years from its commencement. 2.2 After the Donors transfer the Gift to the Foundation, the handling of the funds by the Foundation and the City shall be governed by the Amended Memorandum of Understanding. In particular, the Foundation will hold the Gift in a Foundation account Library Lecture Hall Naming Rights Donation Agreement Page 2 and will disburse the Gift to the City only in accordance with Section 2.4 of the Amended Memorandum of Understanding unless terminated in accordance that Section 2.4. Furthermore, should the Amended Memorandum of Understanding terminate or expire prior to the City having entered into a construction agreement for the construction of the Library Lecture Hall, the City and the Foundation shall return the Gift to the Donors. 2.3. The Donors acknowledge that the City and the Foundation are relying on the Gift in determining whether to proceed with the construction of the Library Lecture Hall and would suffer substantial damages should the Donors breach this Agreement and fail to provide the Gift to the Foundation as set forth herein. 3. ACKNOWLEDGEMENT AND NAMING RIGHTS 3.1 In honor of the Donors, in grateful recognition of the Donors' generosity, and in reliance upon the Donors' full performance pursuant to this Agreement, the City agrees to name the Library Lecture Hall East Exterior elevation as well as monument signage along Avocado Avenue, as approved by the City and the Donors, ("Location") with the Named Donor displayed as: "Witte Hall." The City will ensure that the recognition of the Donors will be substantially as set forth in Exhibit "C" attached hereto and incorporated herein by reference, consistent with the aesthetics and architecture of the Library Lecture Hall. 3.2 Naming rights shall exist for the useful life of the Library Lecture Hall. In the event the Library Lecture Hall is substantially renovated less than forty (40) years from the Effective Date, demolished, destroyed, or if the Location is relocated, the City and the Foundation will work with the Donors, or the Donors' designee, successor, or assigns, to determine another appropriate form of recognition for the support provided by the Gift. Destroyed, as used in this Section 3.2, means the City is unable to cover all of the costs after the City duly pays any deductible to repair, restore, or rebuild the Library Lecture Hall by applying or paying the proceeds of any insurance policy. 4. TERMINATION 4.1 In addition to any rights and remedies available at law, the City may terminate this Agreement and the Naming on behalf of itself and the Foundation and all rights and benefits of the Donors hereunder: 4.1.1 in the event of any default in payment of the entire Gift as provided in this Agreement to the Foundation; or 4.1.2 in the unlikely event the City determines in its reasonable and good faith opinion that circumstances have changed such that the Naming chosen by the Donors would adversely impact the reputation, image, mission, or integrity of the City or the Foundation due to the continued association by the City or the Foundation with the Donors and the continuation of the Naming provided for herein. Notwithstanding the foregoing, inasmuch as the Naming will only include the Donors' family name, should the circumstances described in this Section 4.1.2 come to fruition, the City, by and through its City Manager, and the Foundation by and through its representative, to the extent the Library Lecture Hall Naming Rights Donation Agreement Page 3 Foundation is still a legal entity, will meet and confer in good faith, with the Donors, or the Donors' designee, successor, or assigns, to determine whether there is another appropriate form of recognition for the support the Donors provided with the Gift. All parties hereto agree that the meet and confer process shall conclude within thirty (30) calendar days of the City notifying the Foundation and Donor that the City wishes to engage in the meet and confer process. After the meet and confer process is complete, the City Manager, shall make a recommendation to the City Council and the City Council shall act on that recommendation at a noticed public meeting of the City Council. 4.2 Upon any such termination of this Agreement and/or the Naming hereunder as set forth in Section 4.1 of this Agreement, neither the Foundation nor the City shall have any further obligation or liability to the Donors and shall not be required to return any portion of the Gift already paid. The City together with the Foundation, however, may in their sole and absolute discretion determine an alternative recognition for the portion of the Gift already received. 5. PUBLICITY For purposes of publicizing the Gift and the Naming, the City and the Foundation shall have the right, without charge, to photograph the Donors and use the names, likenesses, and images of the Donors in photographic, audiovisual, digital, or any other form of medium and to use, reproduce, distribute, exhibit, and publish such materials in any manner in whole or in part, including in brochures, website postings, informational and marketing materials, and reports and publications describing the Library Lecture Hall's activities. Notwithstanding the foregoing, the City and the Foundation shall secure prior written consent from the Donors for the use of any photographic, audiovisual, digital, or any other form of medium containing any likeness or image of the Donors, which consent Donors will not unreasonably withhold. 6. ASSIGNMENT This Agreement and the rights and benefits hereunder may not be assigned by any party without the prior written consent of the other parties, which consent shall be in the sole and absolute discretion of the non -assigning parties. 7. ENTIRE AGREEMENT This Agreement constitutes the entire agreement of the parties regarding the matters referred to herein, and supersedes all prior oral and written agreement, if any, of the parties in respect hereto. The captions inserted in this Agreement are for convenience only and in no way define, limit, or otherwise describe the scope or intent of this Agreement, or any provision hereof, or in any way affect the interpretation of this Agreement. 8. STANDARD PROVISIONS 8.1 Advice. The City and the Foundation encourage the Donors to seek their own tax or legal counsel concerning the treatment of any Gift. Library Lecture Hall Naming Rights Donation Agreement Page 4 8.2 Waiver. A waiver by any 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. 8.3 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement, or any attachments attached hereto, the terms of this Agreement shall govern. 8.4 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 any party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 8.5 Amendments. This Agreement may be modified or amended only by a written document executed by the Donors, the Foundation, and the City and approved as to form by the City Attorney. 8.6 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. 8.7 Controllinq 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. 8.8 No Attorneys' Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 8.9 Binding on Successors and Assigns. This Agreement shall be binding on the Donors' successors and assigns, including without limitation the Donors' estate, which is hereby directed to pay the sums for which the Donors are obligated hereunder pursuant to the terms of this Agreement. 8.10 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON FOLLOWING PAGE] Library Lecture Hall Naming Rights Donation Agreement Page 5 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 -.— By: Aa on t. Harp City Attorney p� ATTEST: n Date -.— By: llr ►� Brown" City Clerk DONORS: Date: Z�22 By: William A. Witte Keiko Sakai otoa CITY: CITY OF NEWPORT BEA California municipal cor oratio n Date: i �� By, Kevin Mu on Mayor FOUNDATION: THE NEWPORT BEACH PUBLIC LIBRARY FOUNDATION, a California non-profit public benefit corporation Date: � z / , Z o z -Z By: 7---t -0/ l e old D Kappel ief E ecu ive Officer 10 e: zo By: Dorothy L#6on Secretary [END OF SIGNATURES] Attachments: Exhibit A — Amended Memorandum of Understanding Exhibit B — Brief Description of the Library Lecture Hall Plans Exhibit C — Outline of Particular Place, Size and Other Attributes of the Name Recognition (To Be Personalized for Each Naming Site) Library Lecture Hall Naming Rights Donation Agreement Page 6 EXHIBIT A AMENDED MEMORANDUM OF UNDERSTANDING Library Lecture Hall Naming Rights Donation Agreement Page A-1 Gj s S FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING BETWEEN r THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH v PUBLIC LIBRARY FOUNDATION RELATED TO FUNDRAISING FOR THE LIBRARY LECTURE HALL PROJECT This First Amendment to Memorandum of Understanding ("Amendment") is entered into as of the 12 day of SEPT'E►VISE 2 , 2022 ("Effective Date") by and between the City of Newport Beach, a California municipal corporation and charter city ("City") and the Newport Beach Public Library Foundation, a California nonprofit public benefit corporation ("Foundation"). City and Foundation are at times individually referred to as "Party" and collectively as "Parties" herein. RECITALS A. The Foundation and the City are Parties to that certain Memorandum of Understanding entered into as of November 30, 2021 (the "MOU"). B. The Parties desire to enter into this Amendment as set forth herein. Use of the terms "Agreement" and "Amendment" are intended between the Parties to mean the MOU and this Amendment. C. Capitalized terms which are not otherwise defined in this Amendment shall have the meanings ascribed to those terms in the MOU. NOW, THEREFORE, for and in consideration of the mutual covenants and promises set forth herein, the City and the Foundation do hereby agree as follows: 1. Section 1.3 of the MOU shall be amended in its entirety to read as follows: "1.3 Project Cost. The Parties agree that the total Project costs based upon the Conceptual Design prepared by RCA and approved by City Council, is estimated to be Twelve Million Eight Hundred Thousand Dollars and 00/100 ($12,800,000.00) (the "Estimated Project Cost"). The Estimated Project Cost also includes all design related costs, including but not limited to the costs of Phases I -IV above, and all anticipated costs of obtaining permits, construction, management of construction, inspections, FF&E and a contingency. The Parties understand and agree that the Estimated Project Cost is an estimate based upon the best available information known to the Parties at the commencement of this Agreement and that the actual Project cost which is defined as the actual cost of designing the Project, including but not limited to the actual costs of Phases I -IV above, obtaining permits, constructing, managing construction, inspecting, and FF&E for the construction of the Project (the "Actual Project Cost") may vary based upon several contingencies, including but not limited to change(s) to the design and configuration of the Project and/or increase in the cost of materials and/or labor." FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 1 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION 2. Section 2.2 of the MOU shall be amended in its entirety to read as follows: "2.2 Control Over Fundraising. City shall have no control over the manner or mechanism in which Foundation chooses to manage, hold or invest funds or the manner or mechanism in which Foundation solicits or receives funds. City shall not direct or authorize any specific fundraising activity; nor shall City prohibit or otherwise interfere with Foundation's fundraising activities. Foundation shall be solely responsible for soliciting donors, establishing partnerships with local businesses and organizations, and handling all administrative and other responsibilities related to fundraising. Until Foundation has released the Foundation Commitment to the City, Foundation shall be solely responsible for determining the use or distribution of all funds raised. Notwithstanding the foregoing, the Foundation represents that no part of any donation shall inure to the benefit of any director, officer, member or employee of the Foundation, except in payment of reasonable compensation for services rendered. Notwithstanding such limit, the Foundation shall have the right to deduct from funds raised reasonable fundraising costs, costs of preparation of the reports required pursuant to this Agreement and other expenses directly related to fundraising for the Project ("Reasonable Expenses") unless the Library Lecture Hall Naming Rights Donation Agreement ("Named Donor Agreement") described in Section 12.1 dictates otherwise. This Section 2.2 shall not be construed as limiting Foundation's obligations in Section 5 (Reporting and Accounting Requirements). Nothing in this Agreement shall limit the right of the Foundation to raise funds for other existing or proposed projects, including but not limited to existing and future programming." 3. Section 2.4 of the MOU shall be amended in its entirety to read as follows: "2.4 Bidding; Payment of Donations. Upon completion of construction drawings and permitting for the Project, the City shall put the Project out to bid as a public works project. The City shall notify the Foundation of the date, time and place that the bids received for the Project will be opened by the City and representatives of the Foundation shall be invited to attend the bid opening. Upon opening of the bids, or as soon thereafter as is practicable, City staff ("Staff") shall determine if it will recommend to the City Council that the City Council approve a contract to construct the Project with the lowest responsible bidder. If such determination is made by Staff after the bid opening, the City shall promptly notify the Foundation of the Staffs determination to make such a recommendation to the City Council. Thereafter, the City shall notify the Foundation of the date of the City Council meeting at which a contract with the lowest responsible bidder will be considered by the City Council, and if acceptable, awarded; provided, however, said City Council meeting shall not occur earlier than fifteen (15) days after the Foundation is given such notice of the date of such City Council meeting. The Foundation shall place one hundred percent (100%) of the Foundation Commitment into an escrow account at First American Title Company in Santa Ana, CA or other escrow company agreed to between the Parties ("Escrow Holder") not later than the Friday before said City Council meeting so long as the agenda item remains on the City Council's agenda for such meeting (i.e., the matter has not theretofore been removed from the City Council's agenda). At such time as the City (i) thereafter demonstrates to the Foundation that the FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 2 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION City has appropriated the City's Commitment set forth in Section 3.1 and (ii) has awarded the contract, finalized negotiations and entered into a construction agreement for the Project wherein the City is legally bound to pay for and construct the Project (the "Release of Funds Conditions"), the Escrowed Funds shall be disbursed to the City. Upon the occurrence of the Release of Funds Conditions, Foundation agrees to promptly execute instructions if requested by Escrow Holder as a condition to the disbursement of the Escrowed Funds to the City. In the event of the termination or expiration of this Agreement prior to the City entering into a construction contract for construction of the Project, the Escrowed Funds shall be returned to Foundation. Upon such termination or expiration of this Agreement, the City agrees to promptly execute instructions if requested by Escrow Holder as a condition to the disbursement of the Escrowed Funds to the Foundation. Escrow fees of Escrow Holder shall be paid out of the Escrowed Funds." 4. Section 12.1 of the MOU shall be amended in its entirety to read as follows: "12.1 Naming Rights. Subject to City Council absolute discretion and approval, the Foundation may offer the right to a donor to place the name of the donor, donor's spouse or donor's family on the exterior of the Library Lecture Hall (the "Named Donor"). The amount of the contribution of the Named Donor shall not be less than a minimum amount agreed to by the City and Foundation (the "Named Donor Contribution") and shall be memorialized by way of the Named Donor Agreement between the City, the Foundation, and the Named Donor." 5. Section 12.3 of the MOU shall be amended in its entirety to read as follows.- "12.3 Other Naming Opportunities. In addition to the naming rights of the Named Donor, the City agrees that the Foundation may offer naming rights to the Bamboo Courtyard, the lobby, the green room, the audio-visual booth at the rear of the Lecture Hall, and a donor wall subject to prior review and approval of the City Council and execution of a named donor agreement for such naming rights." 6. Section 12.4 of the MOU shall be amended in its entirety to read as follows: "12.4 Rights of Donors upon Termination of Agreement. The rights of a Donor under Section 12.3 upon termination of this Agreement shall be memorialized in named donor agreements for each Donor." 7. Except as amended by this Amendment, the MOU shall remain in full force and effect. 8. This Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute the same instrument. [SIGNATURES ON NEXT PAGE] FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 3 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION IN WITNESS WHEREOF, the parties have caused this Amendment to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: Y AaFoA C. Harp 2 City Attorney o�. ATTEST: �.- 0 ►.i�_. 1, azw_�_ :. City Clerk CITY OF NEWPORT BEACH, a California municipal corporation C 7P IviQyul FOUNDATION: Newport Beach Public Library Foundation, a California Nonprofit Corporation Je Fd D Kappe hief Executive Officer Date: q6 Z1,-, By: Qj>44t— - Dorothy Lars Secretary [END OF SIGNATURES] FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 4 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION EXHIBIT B BRIEF DESCRIPTION OF THE LIBRARY LECTURE HALL PLANS The Newport Beach Public Library Lecture Hall will be a modern auditorium with tiered, cushioned permanent seating accommodating up to 299 people, technically advanced stage lighting and audio-visual equipment, and excellent acoustics to house the expected range of planned presentations, from the Witte Lecture series to the Library Sunday Musicales, from documentary films to children's programs. The Lecture Hall will be a free-standing building just under 10,000 square feet, sited on the Library grounds adjacent to Avocado Avenue and the current Bamboo Courtyard. The Bamboo Courtyard will also be expanded to provide outdoor pre -event and event space. The Lecture Hall has been designed by Robert R. Coffee Architect + Associates. Library Lecture Hall Naming Rights Donation Agreement Page B-1 EXHIBIT C Outline of Particular Place, Size and Other Attributes of the Name Recognition (To Be Personalized for Each Naming Site) Library Lecture Hall Naming Rights Donation Agreement Page C-1 e c E c •iO• E 'c Y E m a c' a - 5E£ nE3 - c E A 2 E q m E m ? v - n�$ = c 2s v En E o _ o Eu E .Em c 'G S 3 aE E;7;a m , rn il7 a c E c p i — a _ E—'� - E ; 4 n x EYL.Yn I °c - cC �s ,n E EASE i i r > r -T _ ✓ . W a 3 w > V. o j v in Q x o= u w Z J � _ K m Z J l7 x w V � Q 4 m Q n � F O w v _ 3 z Z V ' - � o m i � N s 3 � `o `o co co c o 0 o = — o co a o 0