Loading...
HomeMy WebLinkAboutC-5555(A) - Grant Agreement for Special Event Support Program FY 13-14 - 105th Annual Christmas Boat Parade and Ring of LightsGRANT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH CHAMBER OF COMMERCE °} This Grant Agreement ( "Agreement') is entered into this 11th day of June, 2013 ( "Effective Date"), by and between the City of Newport Beach, a California municipal corporation and Charter City ( "City "), and NEWPORT BEACH CHAMBER OF COMMERCE, a California corporation located at 1470 Jamboree Road, Newport } Beach, CA 92660 ("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 allow 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 105th Annual Newport Beach Christmas Boat Parade and Ring of Lights ( "Grant Proposal "). C. The City Council determined the Grant Proposal is for a worthy project that will benefit the City's resident's quality of life. D. The City Council approved a grant in the amount of Fifty Thousand Dollars and 00/100 ($50,000.00) ( "Grant Funds ") to Grantee pursuant to certain conditions regarding expenditure, reporting, and accounting requirements. NOW, THEREFORE, the Parties agree as follows: 11. City awards to Grantee Grant Funds in the amount of Fifty Thousand Dollars and 001100 ($50,000.00) as requested by Grantee in the Grant Proposal attached hereto as Exhibit A and incorporated herein by reference, or such other amount as authorized by the City Council. 1.2. Grant Funds shall be disbursed by City to Grantee as follows (select one): At the time of execution of this Agreement. H On or before September 18, 2013. ❑ In four (4) equal Installments on the following dates: (a) a✓ €ick to enter :# "..f,?tef (b) (,.Iick hefe to t`. "ier a da t .(c)t.3 §ia.k htflr: to enter at t' ate.; and (d) Iic,k I,efe I e, wit r dciI-*.. 2. TERM The term of this Agreement shall commence on the Effective Date and shall continue in full force and effect until June 30, 2014, 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. If the Grantee has been audited by an independent auditor or has been the subject of a compliance audit/examination by a grantee or regulatory agency during the past three years, audit reports and management letters indicating compliance violations, fraud, illegal acts, material weaknesses in internal control structure or reportable conditions, in connection with such audits shall be delivered to the City thirty (30) days prior to the effective date of this agreement. If no audits or events as described above have occurred during this period, the Grantee shall provide City a written assertion that no audits or similar examinations have occurred during the three (3) year period and an assertion that the Grantee is not aware of any events or conditions, described above, or other information that might reasonable impact City's decision to fund the grant as requested. 4.3. City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the 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 NEWPORT BEACH CHAMBER OF COMMERCE Page 2 items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representative(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Grantee agrees to fully cooperate with any such audit(s). 4.4. This right to audit shall extend during the length of this Agreement and for a period of three (3) years or longer, if required by law, following the date of any Grant Funds tendered under this Agreement. Grantee agrees to retain all necessary records /documentation for the entire length of this audit period. 4.5. Grantee shall, upon conclusion of the event, furnish the City with a Balance Sheet and Income Statement describing the receipt and disbursement activities of Grantee with respect to the Grant Funds. In its sole and absolute discretion the City may also require Grantee to submit: (1) quarterly check registers and descriptions of each disbursement; (ii) budget -to- actual - results; and (iii) a statement of position describing the assets and liabilities associated with the Grant event. All reports, including a post -event evaluation, shall be due to the City no later than forty -five (45) days following the conclusion of the event. In the event that an independent audit is conducted, Grantee shall forward a copy of the audited report tot eh City for review, including any Management Letter, Report on Internal Controls, or Reportable Conditions letter generated during the course of the audit. 4.6. Grantee agrees to exercise prudent financial management processes including proper oversight of all assets, budget preparation, and timely reporting including budget -to- actual- comparisons. 4.7. All Approved Uses shall be performed by Grantee or under Grantee's supervision. Grantee represents that it possesses the professional and technical skills required to perform the services required by this Agreement, and that it will perform all services with a standard of care and in a manner commensurate with the community professional standards. 4.8. If Grantee has supported Political Action Committees(s) (PACs) during the past three (3) years, the Grantee shall hire an independent auditor to perform limited, agreed -upon testwork procedures to provide City assurance that City sponsored event profits did not subsidize the funding of Political Action Committees (PACs) and event proceeds were adequately segregated from funds used to support PACs. Agreed upon procedures may include a review of a detail list of the past three (3) years of PAC contributions and expenditures, including: a. An identifying donor number, date and amount of each reported contribution; and b. A detail of expenditures sufficient enough to determine that the expenditures were solely for PAC - related expenses; and c. Any retained earnings or fund balance at the end of each fiscal year. Substantive documentation for the contribution and expenditure should be available upon request. City shall approve the agreed -upon testwork procedures prior to the commencement of fieldwork. NEWPORT BEACH CHAMBER OF COMMERCE Page 3 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, 2014, Grantee shall notify the City in writing, and shall be obligated to return the Grant Funds to City within thirty (30) days. limil7 MY401 112royIN 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). 62. 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. 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 NEWPORT BEACH CHAMBER OF COMMERCE Page 4 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 9.3. All notices, demands, requests or approvals from City to Grantee shall be addressed to Grantee at: Attn: Steven Rosansky NEWPORT BEACH CHAMBER OF COMMERCE 1470 Jamboree Road, Newport Beach, CA 92660 IT : u ►_ •► 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. NEWPORT BEACH CHAMBER OF COMMERCE Page 5 11.1. Recitals. City and Grantee acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 11,2. Compliance With all Laws. Grantee shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 11.3. Waiver, A waiver by either Party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 11.4. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 11.5. Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Grant Proposal or any other attachments attached hereto, the terms of this Agreement shall govern. 11,6. Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 11.7, Amendments. This Agreement may be modified or amended only by a written document executed by both Grantee and City and approved as to form by the City Attorney. 11.8. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 11.9. Controlling Law And Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this 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. NEWPORT BEACH CHAMBER OF COMMERCE Page 6 11.12. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 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: 2,11-7,11-Y By:, Akr��- - �a,) Aaron C. Harp City Attorney l$5 ATTEST: �• � �� Date: By: 0 . bm—�� Leilani I. Brown City Clerk FoRNli Attachment: Exhibit A: Grant Proposal CITY OF NEWPORT BEACH, A California municipal corporation Date: SO� �eii. MUM City Manager GRANTEE: NEWPORT BEACH CHAMBER OF COMMERCE, a California corporation i Z Date: ' ` y:11Zte�C�,� Steven Rosansky President and CE Date://3 By: Jeff er Vic , resident [END OF SIGNATURES] NEWPORT BEACH CHAMBER OF COMMERCE Page 7 Locey, Mary From: form_engine @fs23.formsite.com Sent: Thursday, March 14, 2013 3:58 PM To: Locey, Mary Subject: Special Event — Application for Financial Support Result #7476406 Special Event — Application for Financial Support Reference #: 7476406 Status: Complete Date: 2013 -03- 1417:58:14 User: 12.187,106.33 (Chrome - Windows) Referrer. httr)s://N23.formsite.com fof�nLgginRe urn Login Account (optional) Users / Returning Users CLICK. HERE to setup or return to your account for this form. Creating an rnt enables you to return to this form and your submitted results. An account will also enable you to illy complete this form and return later to finish the form. The account you establish is only for this form. Directions for Completing the Application Form • Each question should be answered clearly and briefly. • If a question is not applicable, enter N /A. • Attach a copy of the event budget (2 -page maximum) • Incomplete or application received after the submission deadline will notbe accepted. • Do not sumit collateral materials (i.e. marketing materials and programs). They will not be considered. • Submissions received via mail or online will be considered equally. • Completed application must be received no later than 4 p.m. on Friday, March 15, 2013. Special Event Support Evaluation Criteria The City of Newport Beach will consider the following criteria in evaluating requests for financial support: 1. The event should advance the City of Newport Beach as an exciting place to live, work, play, learn, and visit. 2. The event should give Newport Beach residents and businesses a sense of civic pride and ownership. 3. The event enhances, serves, involves, benefits, and or promotes a sense of community for the residents of Newport Beach. 4. The event not always be free of charge, but should be accessible to the community /public. 5. The application must include a copy of the Event Budget (2 -page maximum). 6. The amount of financial support requested from the CO should represent no more than 25 %of the total event budget. (Volunteer hours may not be counted toward the total event budget, but the value of in -kind goods and services may be counted.) 7. The applicant should demonstrate strong financial management and effective management controls over the event, including cost effectiveness. Successful applicants must agree to provide the event's financial statements and allow the City to conduct its own review of them, if desired. 8. If the event is charitable in nature, it should benefit a local Newport Beach or Orange County -based charitable organization. 9. The event must be held between July 1, 2013 and June 30, 2014. * Name of Applicant Organization: Newport Beach Chamber of Commerce Applicant Representative Contact Information * First Name Steve * Last Name Rosansky * Full Address 1470 Jamboree Road, Newport Beach, CA 92660 * Phone Number 949 - 729 -4404 * Email Address Aeve@n"w Qrtbeach.com * Type of Entity rX Corporation LLC E] LLP Sole Proprietor Other * Name of Event: 105th Annual Newport Beach Christmas Boat Parade and Ring of Lights * Event Oate(s): December 18 -22, 2013 * Is this an annual event? Xyes ❑ no * Type of event: r] Art/Culture Sports Commercial El Social ❑X Community F] Special Interest e Other * Event location /venue: Throughout Newport Harbor (a 14 mile route on the water) and surrounding residences and businesses * Are you anticipating any road closures? If so describe waste minimization and clean -up plan for public spaces /roads. No road closures are being planned. * Have you previously received City support for this or any other event sponsored by your organization? ® Yes ❑ No * If yes, please list the event(s), year(s) and amount(s): In 2012, the Boat Parade received $35,000 and the Taste of Newport $5,000. In 2011, the Boat Parade received $30,000 and the Taste of Newport $7,200. The City also supports smaller Chamber of Commerce events throughout the year (table sponsorships, etc.) * Is there a fee to enter the event? If yes, what is the amount of the fee? This event is free to the general public to view. For participants with a boat or home, the entry fee is $25. * Describe what, if any, portion of the event is FREE to the public. The entire event is free to the public for viewing from many points around the harbor. * Brief Description of Event (150 -word maximum): The Newport Beach Christmas Boat Parade is the largest special event in Newport Beach, drawing an estimated one million viewers annually. As Newport Beach's "Christmas Card to the world," the parade runs five nights in December with beautiful multi - million dollar yachts and small boats lighting up the harbor. The event has been hailed as "One of the top ten holiday happenings in the nation" by the New York Times and earned Newport Beach the designation In 2011 as the " #2 City in the Country for Holiday Lights" by Yahoo! Travel. The parade travels 14 miles around the harbor giving viewers in restaurants, homes, yacht clubs, and on beaches an incredible sight that has delighted millions for over a century. Serving as the backdrop is the "Ring of Lights" contest with decorated bayside homes and businesses surrounding the harbor. Awards are presented at the annual Awards Dinner & Auction in January. * Anticipated Event Attendance (indicate participants vs. spectators, if applicable): When you observe the number of people who line the Harbor, attend private parties in water front homes, dine in our restaurants, access the water through Boat Charters or rentals, it doesn't take long to get to an estimate of over 200,000 people viewing the Parade directly each night. Multiply the 200,000 spectators times the 5 nights of the Parade and you can see where the Chamber of Commerce suggests more than a million people actually view the Parade. Of course, with national media coverage garnered annually by the event and through expert partners like Visit Newport Beach, Inc., the event viewership is actually exponentially larger. In terms of specific estimates, it is suggested that approximately 25,000 are local residents, while the balance are made up of visitors to the community from not only surrounding cities, but from all over the country and beyond. In terms of participants, the Boat Parade usually attracts between 70 and 100 official entrants (87 in 2012), with many more "unofficially" participating at the end of the parade. The Ring of Lights usually features as many as 15 -30 actual entrants, with many more decorating but not officially entering. * Summarize applicant's prior event experience (100 -word maximum): The Newport Beach Chamber of Commerce produces signature events for the Community. The Chamber has a demonstrated history of solid organization, with event management on staff with decades of experience. The Chamber also utilizes many qualified vendor partners, including industry leaders in tenting, audio visual, staging, catering, etc. Some of its events include... • 24th Taste of Newport • 41st Police Appreciation Breakfast • 51st Sand Castle Contest • 51st Scholarship ( Athletic Awards • 77th Flight of the Lasers • Mentor for a Day • Citizen of the Year Gala • 15th Annual Fire & Lifeguard Appreciation Beach Party * If the Applicant conducts similar events elsewhere, please provide details including: where, when, safety issues, and if applicable, why the event left its previous location (150 -word maximum): Although the Chamber organizes other events with similar elements (volunteers, complex logistics, vendor and partner management, etc.) the Christmas Boat Parade is a one of a kind event in our community and has been in its current location since the beginning. * Amount of cash requested (do not request fee waivers or in -kind donations): $50,000 * How will the requested funds be used? To assist in funding the ongoing overall operations of the event, including (but not limited to) staffing and overhead, logistics support, marketing efforts, etc. * The City's support should represent no more than 25% of the total event budget. Volunteer hours may not be counted toward the total event budget, but the value of in -kind goods and services may be counted. Does your request meet this criterion? FX Yes ❑ No * The City's support must be used for the implementation of an actual special event. (i.e. event execution, not planning the event) Does your request meet this criterion? XYes E]No * The request for City support must include a list of other City entities or groups (e.g., City Arts Commission, Balboa Village Business Improvement District) from which the applicant is seeking financial support. Are you seeking financial support from other City entities? 11 Yes a No * If you answered yes above, please list the entities or groups and the amount of financial support requested from each: N/A Attach event budget wk66UrfA 2013BoatParadeandAuction.oddf Newport Beach Chamber of Commerce Christmas Boat Parade Audio Visual 2013 Budget Banners 4,000 Budget 2,000 December 2013 SPECIAL EVENTS COUNCIL Flyer (4 /Color) Christmas Boat Parade Food & Bar for VIP Boat Boat Entry @ $25.00 2,000 Horne Entry @ $25.00 500 Charter Sponsors 0 Contributing Sponsor 5,000 In Kind Sponsor 36,000 Presenting Sponsor 37,000 Christmas Boat Parade - Other Postage Total Boat Parade Income 80,500 Christmas Boat Parade Expense Audio Visual 2,000 Banners 4,000 Boat Awards 2,000 Insurance - Non Owned watercraf 2,500 Flyer (4 /Color) 1,000 Food & Bar for VIP Boat 5,000 Home Awards 2,000 Fireworks 10,000 Inflatables 2,000 Letterhead 1,500 Permit 2,195 Photography 1,200 Postage 3,200 Brochure /Registration 500 Banquet Food Costs 4,000 Salaries /Labor 30,000 Sponsor Advertising 10,000 Sponsor Awards Dinner 2,000 Voice of the Parade 250 Total Christmas Boat Parade Expense 85,345 Net Income -4,845 Newport Beach Chamber of Commerce Christmas Boat Parade Dinner and Ruction 2013 -2024 Budget Budget January 2014 SPECIAL EVENTS COUNCIL Christmas Boat Parade Auction Donations 5,000 Live Auction CBP 24,000 Raffle 1,000 Silent Auction CBP 28,000 Special Raffle 3,000 Ticket Sales;@ $125 15,000 Table of 10 $1,500 15,000 Total Auction Income 86,000 Expenses Audio Visual 5,000 Decorations /Flowers 1,000 Entertainment 5,000 Framing/Signage 1,000 Invitations 2,000 Parking 1,000 Postage 600 Prize Reimbursements 4,300 Programs 1,200 Salaries /Labor 30,000 Stationary]Supplies 1,000 Banquet Food Costs 32,500 Wine Corkage 2,000 Auction Expense 86,600 Net Income -600 Page § or 1