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
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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
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