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HomeMy WebLinkAboutC-4859(E) - Grant Agreement for Special Event Support Program FY 11-12 - Balboa Island Parade1� v) GRANT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND THE BALBOA ISLAND IMPROVEMENT ASSOCIATION This Grant Agreement ( "Agreement ") is entered into this day of December 2011, by and between the City of Newport Beach, a California municipal corporation and Charter City ( "City "), and the Balboa Island Improvement Association, a California non - profit corporation located at 204 Coral Avenue, Newport Beach, CA 92662 ( "Grantee "). City and Grantee are at times individually referred to as "Party" and collectively as "Parties" herein. RECITALS A. It is the policy of the City Council that the City's budget specifically allows the City Council to direct revenue towards non - profit agencies, community groups, community events, or enhancement projects with worthy projects or programs which the City Council deems beneficial to resident's quality of life. B. Grantee requested a grant from the City for the Annual Balboa Island Parade ( "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 One Thousand Two Hundred Dollars and 00/100 ($1,200.00) ( "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 One Thousand Two Hundred Dollars and 00/100 ($1,200.00) as requested by Grantee in the Grant Proposal attached hereto as Exhibit A and incorporated herein by reference, or such other amount as authorized by the City Council. 1.2. Grant Funds shall be disbursed by City to Grantee as follows (select one): At the time of execution of this Agreement. ❑ On or before Click here to enter a date.. ❑ In four (4) equal installments on the following dates: (a) Click here to enter a date.(b) Click here to enter a date.(c)Click here to enter a date.; and (d)Click mere to enter a date.. The term of this Agreement shall commence on the date first written above ( "Effective Date ") and shall continue in full force and effect until June 30, 2012, 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 "): 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. 4. REPORTING AND ACCOUNTING REQUIREMENTS 4.1. At all times during the term of this Agreement, Grantee shall maintain true, proper, and complete books, records, and accounts (collectively, "Books and Records ") in which shall be entered fully and accurately all transactions taken with respect to the operations of Grantee under the Grant Proposal and the expenditure of the Grant Funds. Grantee shall maintain the Books and Records in accordance with Generally Accepted Accounting Principles, 4.2. City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the right to audit Grantee's accounting procedures and internal controls of Grantee's financial systems as they relate to the Grant Proposal and to examine any cost, revenue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representative(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Grantee agrees to fully cooperate with any such audit(s). 4.3. 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. Balboa Island Improvement Association Page 2 4.4. Grantee shall upon conclusion of the event funded by the Grant Funds, 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 of Grantee. All reports, including a post -event evaluation, shall be due to the City no later than forty -five (45) days following the end of the conclusion of the event funded by the Grant Funds. 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. 4.5. Grantee agrees to exercise prudent financial management processes including proper oversight of all assets, budget preparation, and timely reporting including budget -to- actual- comparisons. 4.6. 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. 5. USE OF GRANT FUNDS The Grant Funds shall be used solely by Grantee for the Approved Uses and for no other use. In the event that the Grant Funds are not used for the Approved Uses or are not expended by or before June 30, 2012, Grantee shall notify the City in writing, and shall be obligated to return the Grant Funds to City within thirty (30) days. 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 Balboa Island Improvement Association Page 3 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. NKCI Aki19=1 =11111►1314,=11.I9140im2 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. 8. PROHIBITION AGAINST TRANSFERS Grantee shall not assign, sublease, hypothecate or transfer this Agreement or any of the services to be performed under this Agreement, directly or indirectly, by operation of law or otherwise without prior written consent of City. Any attempt to do so without written consent of City shall be null and void. 9. NOTICES 9.1. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the third business day after the deposit thereof in the United States mail, postage prepaid, first class mail, addressed as hereinafter provided. 9.2. All notices, demands, requests or approvals from Grantee to City shall be addressed to the City at: Attn: City Manager City of Newport Beach 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658 -8915 Phone: (949) 644 -3000; Fax: (949) 644 -3020 Balboa Island Improvement Association Page 4 9.3. All notices, demands, requests or approvals from City to Grantee shall be addressed to Grantee at: Attn: Jeff Herdman Balboa Island Improvement Association 204 Coral Avenue Newport Beach, CA 92662 Phone: 949 - 675 -3288 Email: jherdman1 @roadrunner.com 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 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 anytime 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. 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. 11.2. 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. 11.3. 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. Balboa Island Improvement Association Page 5 11.4. 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. 11.5. 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. 11.6. 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. 11.7. 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. 11.8. 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. 11.9. 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. 11.10. 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. 11.11. 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 FOLLOWING PAGE] Balboa Island Improvement Association Page 6 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICI narP l a /s /� 1 By:- ZI"( '� Aaron C. Har City Attorney J Date? ATTEST) � /� /// Date: 4 t .qt.- Non 4c "� Attachment: Exhibit A: Grant Proposal CITY OF NEWPORT BEACH, A California municipal corporation Date: 1,2..1 i 5 ( 2dN Dave � City Manager GRANTEE: Balboa Island Improvement Association, a California non - profit corporation. Date: 04011 � � a i Title: <re. -7; t ' . �r [END OF SIGNATURES] Balboa Island Improvement Association Page 7 Exhibit A Submit by Email :NEVVPORTBEAGH:SPECIAL�EVEt4T---APPLICATIO:NFOm,,5-U!PP�0i.RT Section One — Event Summary and Applicant Information Name of Event Annual Balboa Island Parade Dates) of Event Sunday, June 3, 2012 Time(s) of Event 11:00 a.m. to 2:00 p.m. Location(s) or Venue(s) of Event Marine Ave., Balboa Island Is or will this be an YES NO annual event? O O Type of Event —special interest, commercial, sports, cultural /arts, social, etc. Community Parade Is-there a charge or YES NO fee "for the event? O O Describe what, if any, portion of the event is free to the public. The entire event Describe what, if any, portion of the event is charitable fund raising. Please provide the name of the charity or charities the event supports along with a contact name and phone number for each charity. What percentage of the proceeds will each charity receive? Please provide an estimate of what the percentage may be in dollars. N/A Types of In -Kind City Sponsorship Requested — List: N/A Are you requesting any roads be closed? If yes, which roads, when & for how long? Bayside Drive from Harbor Island Dr. to Marine Ave. (one east bound lane) Amount of Cash Sponsorship from the City requested and how it will be used. Be specific. $3,000.00 to be used for equipment rentals, Portable toilet rental, N.B,P.D. stipends, city permit, signs, poster and postal expenses. Name of Applicant Organization Balboa Island Improvement Association Description of Applicant Organization - type of entity (attach proof of non -profit 501(c) 3 status if applicable), purpose, and history. The Balboa Island Improvement Association (BIIA) is not an HOA. The BIIA exists to work toward continual improvement projects on both Balboa Islands, and offers events and activities for its membership on an annual basis. Members of the association pay annual dues. The association is governed by a 13 member volunteer board of directors. Four (4) officers serve the organization. The remaining nine (9) board members each assume a responsibility for a branch of the organization (for example: Holiday Home Tour, Parade, Pancake Breakfasts and Bar -b -ques, Beautification, Neighborhood Watch, Newsletter Production, Sand Castle Contest, etc.). The BIIA has been in existence almost since the inception of the island (1920's). The earliest minutes date back to the year 1928. Does the Applicant hold intellectual property rights to the event? If not, who does? NIA Name of Contact and Contact Information for the Purpose of this Application. Jeff Hardman Address 204 Coral Ave., Newport Beach, CA 92862 Phone Fax (949) 675 -3288 Mobile Email (949) 922 -3594 jherdman1 @roadrunner.com Is there a contract YES NO with an event O O organizer? Best times and ways to reach contact person. Either of the above phone numbers day and evening Experience of both the Applicant and the Event Organizer. This will be the seventeenth Annual Balboa Island Parade organized by the Balboa Island Improvement Association. The parade chairman has served in this position for the past two years. The parade committee consists of over 30 volunteers, some of who have served on this committee since the inception of the parade. Excellent records are maintained so that each year committee members simply reference their "List of Things To Do ", and rely on their previous years of experience in organizing this annual event. Monthly parade committee meetings are held beginning in February up until the time of the parade. A de- briefing meeting is always held by the committee following the parade in order to fine tune planning for the following year. If the Applicant conducts a similar event in other cities or if the event has been held in Newport Beach previous ly, describe any di fficulties you 've encountered and what adjustments you've made to improve the event. In past years, and prior to the 2010 parade, emcee announcing only accommodated those parade viewers at the middle of the parade due to the location of the emcee stage. In 2010 the sound system was expanded to accommodate parade spectators along the entire parade route. An additional accommodation will be made this year in the form of an additional parade marshal who will be stationed at Bayside Dr. and Marine Ave. (the beginning of the parade) for the purpose of keeping the parade moving at a good pace, as well as insuring that parade entrants are spaced evenly while traversing the parade route. After seventeen years of parade production, practically every "bug" has been identified and worked out so that the parade truly runs smoothly and efficiently, and a great time is had by all entrants and spectators. Provide previous locations of event, including reasons for leaving, The parade has always been held on Marine Ave. beginning at Bayside Dr. The original parade was planned in honor of the opening of the new fire station on Balboa Island located at Marine and Park Avenues. Section Two - Benefit Statement Description of How the Event Meets the City Criteria - Maximum two pages. Using the space below (and one additional page if needed), provide a narrative explaining how the event fulfills the City's twelve evaluation criteria for support, listed at the introduction to this aoolication. 1. The Annual Balboa Island Parade draws between three and five thousand spectators to the commercial blocks of Marine Ave. on Balboa Island. Parade spectators, both before and after the parade, take great advantage of the shopping and dining opportunities that the variety of shops and restaurants offer on Marine Ave. 2. The annual parade is sponsored and produced by the Balboa Island Improvement Association and is designed to welcome in the summer season and the "Newport Beach Experience 3. All parade planning and production is completed by volunteers. No city personnel are involved in parade planning. 4. For the past two years, parade production costs have averaged $12,000.00. 5. Prior to the last three years, the parade was funded by the non - profit Balboa Island Improvement Association. Over the past three years donations have been accepted by the association from members, residents, and island businesses. Also, City Councilman, Ed Selich, whose district includes the Balboa Islands, has contributed from his discretionary funds to help off -set the cost of the parade to the association. 6. There is no cost to the public to view the parade, nor will a charge ever be levied. 7. Safety issues are always of high concern during the planning stages, and during the actual parade. To that end, the experience of the planning committee is clearly evident and can be verified by the Newport Beach Police Department's involvement in the parade. 8. The parade expense records are maintained by the treasurer of the BIIA. Such records reflect the cost effectiveness and sound fiscal management of the parade. All planning efforts are executed by volunteers, and all parade participants are also volunteers. Parade expenses must be receipted expenditures. 9. The parade is provided for the enjoyment of the community and is not a charitable event. Parade Budget Expenditures ($) Received ($) Sponsors and Underwriters 4,270 (2010) Rent- Equipment 1,434 Police 2,551 Entertainment 1,250 Flags /Banners /Decorations 1,820 Food /Refreshments 1,081 Portable Toilets 1,055 City Permit 890 Supplies 872 Awards 343 Signs /Posters 103 Printing /Postage 140 Totals 11,539 4,270 Section Three - Event Description and Attachments The application is not complete and will not be reviewed unless requested documents are attached. Description of the Event — Maximum of one page. A basic description of your event, including the objectives and history of the event, and if there is a special theme or focus of the event Business Plan for the Event — Maximum two pages. Include 1) Event goals, objectives and strategies. 2 Planning, preparation, event schedules with milestones and time frames. Budget for the Event — Maximum two pages. Include 1) Projected budget. 2) Detailed budget with cash flows, profit & loss forecasts. 3) A list of confirmed and potential sponsors, both financial and in -kind with dollars confirmed and requested. Marketing and Promotion Plan for the Event — Maximum three pages. Include 1) Target Markets. 2) Marketing Objectives. 3) Marketing strategies including advertising /PR activity and timelines. 4) Who is responsible for the marketing and promotion plan? 5) Do they have experience in either events /marketing /PR? If yes, summarize that experience? 6 itemized marketing and promotions plan budget. Sponsorship Proposal Package. Please attach a description of the specific benefits being offered to Newport Beach. Economic Impact Potential. Do you have any existing economic impact data such as a commissioned economic impact report for this event? If yes, please attach the latest data along with who collated the data. Whether you have a previous report or not, please use your best estimate to complete the boxes regarding attendance and lodging provided below. Attendance. (Please do not exaggerate.) Number of People Expected NB us Foreign $0.00 Residents Residents Visitors Participants /Hosts /Competitors /Members 300 300 Totals of Applicant Organization $0.00 $0.00 Spectators /Attendees/ Audience/Ticket 2,200 3,500 Buyers/Diners Volunteers/WorkersNendors 60 60 Totals 2,560 3,860 Entry Fees Adult Child Other Participant $0.00 $0.00 $0.00 Spectators $0.00 $0.00 $0.00 Totals $0,00 $0.00 $0.00 Need for Accommodation(s). (Please do not exaggerate.) Anticipated Number of Room Nights 0 Will all accommodations be in Newport Beach? If not, where? Yes What is the anticipated average stay in Newport Beach for Participants3 Spectators 3 Permits and Safety Plan for the Event Have you applied for a Special Events Permit for this event? Yes 0 If, not when will you? March 2012 Have you spoken to Newport Beach Police Department about your event? Yes If, not when will you? Waste Minimization /Recycling /Clean -up Plan - Maximum two pages. Explain the types of controls, management programs, initiatives or incentives implemented by your organization, in order to reduce the amount of waste generated and to ensure city property is pristine following our event I hereby certify the foregoing st, atements to be true and correct a nd agree to defend, indemnify and hold harmless the City of Newport Beach, its City Council, officers, agents, employees and volunteers from and against any and all loss, claims, damages, liability, such claim or suit arising from or in any manner connected to the requested funding and activ ity. I hereby a cknowledge that the Applicant is solely responsible for applying for and receiving all necessary City, Coun ty, and /or State permits necessary to conduct the event. I also agree if approved, to comply with all funding and special event permit conditions, and understand that failure to comp ly with any conditions or any violation of law may result in the immediate canc ellation of the event, denial of future events, and or crimi nal prosecution. Failure to comply with funding conditions can result in civil litigation to recover the City's money. Name & Title -:7f ff r/;�rYtld n , Date2g a9 1 Gtr? w -=-SAa nd /I&Ve- YM-e -, i r3, Submit by Email Si ature DESCRIPTION OF PARADE This event is a community-based home town parade with the objective of creating a non - commercial opportunity for Balboa Island residents to participate. Groups, neighborhoods, organizations and individuals are all encouraged to participate. The parade also includes local and national political personalities with no campaigning allowed. Classic automobiles are entered and often transport dignitaries down the parade route on Marine Ave. (a two block parade route). Local school bands, musical groups and golf cart floats are highlights of the parade each year. There have been seventeen (17) prior parades the first of which celebrated the opening of the Balboa Island Fire Station at Marine and Park Avenues. The object of the parade is to promote and celebrate living, working, and vacationing on Balboa Island. BUSINESS PLAN The primary goal of the parade is to provide entertainment for the community, to create a sense of community spirit and cohesiveness, and to promote island commerce. All planning for this event is conducted by volunteers. Each planning committee member assumes a particular responsibility which, in the end, comes together to present a coordinated and efficiently run event. The planning committee meets once each month beginning in February of each year. At these meetings planning committee members report their progress toward meeting the objectives of a coordinated effort to produce the parade. In May the planning committee will meet twice to insure that all preparations are finalized. MARKETING AND PROMOTION Due to the fact that parade participants and spectators are not charged for viewing or participating in the parade, there is no need to market the parade for the purpose of offsetting costs. However, there is a definite publicity plan that is executed each year by advertising the parade in the local media and on the BIIA Website. One member of the planning committee has been in charge of publicity for the past several years and is responsible for making information about the parade available to the local media and press. Posters advertising the parade are printed and distributed a month in advance to key locations on the island, and throughout the city to encourage participation, both spectators and parade entrants. There are no other confirmed or potential sponsors of the parade other than the Balboa Island Improvement Association. It has always been the intent of the Parade Planning Committee that no funds be sued to promote the parade other than for the cost of posters which average $140.00 (the amount allowed for in the budget). SPONSORSHIP PROPOSAL The benefit offered to the City of Newport Beach as a result of this event is a goodwill reputation for the city. The influx of off -island attendees to the parade, whether residents of Newport Beach or not, brings a significant customer base to the city that day, as well as in the future, generating income for island businesses, and tax revenue for the city. WASTE MANAGEMENT Along the parade staging area, as well as the parade route, lined trash containers are strategically placed. After the parade the trash containers are collected for city pick up. No vendor sales are allowed during the parade in order to keep down on waste /trash. Each year following the parade, the city has provided street sweeping on Marine Ave. (the parade route).