HomeMy WebLinkAboutC-5555(F) - Grant Agreement for Special Event Support Program FY 13-14 - Science Saturdays and Sundays at the Back BayGRANT AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND
EXPLOROCEAN
This Grant Agreement ("Agreement") is entered into this 11t" day of June, 2013
("Effective Date"), by and between the City of Newport Beach, a California municipal
corporation and Charter City ("City"), and EXPLOROCEAN, a California nonprofit
corporation located at 600 East Bay Avenue, Newport Beach, CA 92661 ("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 Science Saturdays and Sundays
at the Back Bay ("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 Seven Thousand Five
Hundred Dollars and 00/100 ($7,500.00) ("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 Seven Thousand Five
Hundred Dollars and 001100 ($7,500.00) 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: nta.
❑ In four (4) equal installments on the following dates: n1a
The term of this Agreement shall commence on the Effective Gate 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
EXPLOROCEAN 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 to the City for review,
including any Management Letter, Report on Internal Controls, or Reportable Conditions
letter generated during the course of the audit.
4.6. 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.
EXPLOROCEAN 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.
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
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
EXPLOROCEAN 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: Tom Pollack
EXPLOROCEAN
600 East Bay Avenue, Newport Beach, CA 92661
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.
EXPLOROCEAN Page 5
11.STANDARD PROVISIONS
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.
EXPLOROCEAN 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 OFFICI
Date:
By:
Aar n J. Harp
City Attorney
ATTEST:
Date: fid. %5
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
By: 4-2;; z �- � - -4
Dave Kh
City Manager
GRANTEE: EXPLOR C , a California
nonprofit ctroor f n /
Date:
-)"
By: - By:
C —
Leilani I. Brown Tom P (lack
City Clerk CEO
t-
���'ORN�
Attachment: Exhibit A: Grant Proposal
Date:
[END OF SIGNATURES]
EXPLOROCEAN Page 7
12mmelff-11
Locey, Mary
9
From: form—engine@fs23.formsite.com
Sent: Thursday, March 14, 2013 12:10 PM
To: Locey, Mary
Subject: Special Event — Application for Financial Support Result #7460864
Special Event — Application for Financial Support
Reference #:7460864
Status: Complete
Date: 2013-03-1.4 14:09:38
User: 76.240,187.98 (Chrome - Windows)
Referrer: htti)s://fs23.formsite.com/res/formLpklpReWrn
Account
Users / Returning Users CLICK HERE to setup or return to your account for this form. Crea
ant enables you to return to flus form and your submitted results. An account will also enable
illy complete this form and return later to finish the form. The account you establish is only f
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:
g an
In to
this form.
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.
S. The application must include a copy of the Event Budget (2 -page maximum).
6. The amount of financial support requested from the City 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 events 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:
ExplorOcean, Home of the Newport Harbor Nautical Museum
Applicant Representative Contact Information
* First Name
Rita
* Last Name
Stenlund
* Full Address
600 East Bay Avenue
* Phone Number
9496758915
* Email Address
rstenlu ndnexp_iorocean.om
* Type of Entity
corporation
LLC
LLP
ElSole Proprietor
X Other (Nan Profit)
* Name of Event:
Science Saturdays and Sundays at the Back Bay
* Event Oate(s):
Every Saturday and Sunday
* Is this an annual event?
Xyes
Elno
* Type of event:
Art/Culture
nSports
FlCommercial
Social
❑ Community
nSpecial Interest
OOther (Education)
* Event location/venue:
ExplorOcean (Saturdays) and Back Bay Science Center (Sundays)
* Are you anticipating any road closures? If so describe waste minimization and clean-up plan for public spaces/roads.
None
* Have you previously received City support for this or any other event sponsored by your organization?
QYes
No
* If yes, please list the event(s), year(s) and amount(s):
Family Fun Zone Fridays, 2012-13, $1,500 - City Arts Commission
* Is there a fee to enter the event? If yes, what is the amount of the fee?
None
* Describe what, if any, portion of the event is FREE to the public.
All of the event is free
* Brief Description of Event (150 -word maximum):
Every weekend ExplorOcean offers local and visiting families hands-on enriching experiences through Science Saturdays and Back Bay
Sundays. Quick and engaging activities bring parents and children together as they make predictions, ask questions, problem -solve and
think like scientists. At our weekend programs, everyone is a scientist, so participants investigate and experiment in a wide range of
hands-on science activities led by specially trained volunteers. Each month a new theme is introduced based on the 7 Ocean Literacy
Principles. These programs leverage Newport's unique location and provide unique, interesting and compelling programs FREE for the
general public every weekend. The programs also provide new programming to the Back Bay Science Center that hasn't had this type
of ongoing public programming. The programs are promoted to a variety of audiences across Southern California through online
listings, blogs and websites, print ads and partner collaborations.
* Anticipated Event Attendance (indicate participants vs. spectators, if applicable):
Attendance ranges from 75 to 300 people each day per weekend at each site. With programs provided for 52 weeks - this translates
into over 20,000 locals and visitors who are making the Newport Beach bay their primary destination. The program is provided for
FREE in the courtyard at the Fun Zone and in the classrooms at the Back Bay. The event is publicized through the ExplorOcean website
along with listings in Visit Newport, OC Register, a variety of family publications including: OC Family, Plan a Day Out, 101 things to do,
Patch, KidsGulde, Orange County.net, EasyOC, Just Spotted, Parenting OC, OC Mommies, Spark OC, Zvents and more. The program is
staffed by our Explorer Squad, a group of volunteers who receive extensive training each month on the science content standards.
* Summarize applicant's prior event experience (100 -word maximum):
ExplorOcean has an extensive record of providing compelling special events and programs for the community. These programs include
our Family Fun Zone Fridays; Newport to Ensenada Launch event; and our school programs and tours. Our staff has more than 80
years of combined of special event management and execution ranging from South Coast Plaza to the Santa Ana Zoo. The curriculum
is developed by our director of education, Dr. Wendy Marshall who has over 17 years in the field of educational research and
evaluation.
* 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):
The program is run at both ExplorOcean and the Back Bay Science Center. The program leverages existing locations to provide free
programming to the community. The staff at the Back Bay Science Center are excited to provide our programming because they are
able to offer new programming to the community with no burden to their existing staff. The program has already developed a
dedicated following of participants.
* Amount of cash requested (do not request fee waivers or in-kind donations):
$7,500
* How will the requested funds be used?
The funds will be used for marketing and supplies for the event. Each weekend there are hands-on stations set up at each location. For
example, for a lesson on weathering and erosion there are several activities: chalk on sandpaper to mimic how rocks weather; jolly
ranchers in a mason jar to simulate making your own sand; and individual erosion tables where participants set up their own
community and then watch what happens when waves hit the community - they then have an opportunity to rebuild the community
once they understand what happens. Programs also include mapping the ocean floor, making and understanding your own compass,
edible constellations and more. These programs run every weekend and are free to all,
* 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?
❑X Yes
r] 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?
Fx]Yes
n 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?
Yes
❑X 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
KvnaCPvx ExplorOcean-BudgetScienceSaturdaysandBackBavSundays.xlsx
- -- -- —
ExplorOcean_
v Weekend Science Programs 2013 - 2014 mm
Science Saturdays and Back Bay Sundays
Curriculumn development
Developed by Director of Education - Dr. Wendy
Marshall
$ 15,000
Training
Monthly training of volunteers to staff weekend
programs
$ 2,400
Marketing
Print and online
$ 4,370
_
Supplies
Consumable supplies - 52 weeks m
$ 10,400
Total
�
$ 32,170
_
o�EWPORra CITY OF
NEWPORT REACH
City Council Staff Report
Agenda Item No. 17
June 11, 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949-644-3001, dkiff@newportbeachca.gov
PREPARED BY: Dan Matusiewicz, Finance Director
APPROVED: (✓1
TITLE: Resolution 2013-53: Fiscal Year 2013-14 Budget Adoption
ABSTRACT:
The City's Charter requires the City Council to adopt an annual budget by resolution each
year prior to June 301h.
RECOMMENDATION:
1. Hold the public hearing on the City Manager's Proposed Budget for Fiscal Year
2013-14. After reviewing the staff report and taking public input, discuss and accept
Council member recommendations for additions, deletions, or modifications to the
budget checklist.
2. Conduct a straw vote on the budget checklist, including those added to the City
Manager's Proposed Fiscal Year 2013-14 Budget by Council members during the
public hearing. Based on the straw vote, items approved will be included in the
City's Fiscal Year 2013-14 Approved Budget.
3. Approve Resolution 2013-53 adopting the City Manager's Proposed Fiscal Year
2013-14 Budget, as amended by Items 1-2 above.
FUNDING REQUIREMENTS:
The City Council, upon adoption of the Budget Checklist as indicated on Attachment A and
the originally proposed FY 2013-14 Budget Resolution as indicated on Attachment B, will be
authorizing the total appropriations for Fiscal Year 2013-14. Projected revenues are
expected to balance the proposed operating budget including the attached Budget
Checklist.
Resolution 2013-_: Fiscal Year 2013-14 Budget Adoption
June 11, 2013
Page 2
DISCUSSION:
Background
Pursuant to Section 1102 of the Newport Beach City Charter, and Council Policy F-3 titled
Budget Adoption and Administration, the Proposed Budget for the 2013-14 Fiscal Year was
first submitted to the City Council on May 9, 2013. The City Council held budget study
sessions on May 14, 2013, and May 28, 2013, to review the City Manager's Proposed
Budget for the 2013-14 Fiscal Year.
The City Manager's Proposed Budget for Fiscal Year 2013-14 is balanced and reflects the
City Council's commitment to fiscal sustainability and the effective allocation and
management of the City's resources. The proposed General Fund revenue budget is $166
million, an increase of 2.2%, or $3.5 million, over the amended Fiscal Year 2012-13 General
Fund budget. The increase appears modest due to certain one-time revenue sources
received in Fiscal Year 2012-13, which are not expected to reoccur in Fiscal Year 2013-14.
These include the distribution of our equity interest in the Airborne Law Enforcement joint
powers authority of $2.5 million, the distribution of unencumbered proceeds from a County
redevelopment agency (RDA) of $1.9 million, and certain other revenue. The General
Fund's top three revenue sources are projected to increase as follows: secured property
tax 4%, sales tax 5.5%, and transient occupancy tax 7%. The total revenue for all funds is
projected to increase 9% over the revised Fiscal Year 2012-13. The backdrop for these
positive developments is the increasing vitality of our local economy. Housing demand and
values are increasing as are the number of new jobs in Orange County, thereby resulting in
greater consumer confidence and spending.
The recovering economy and the Council's guidance in recent years provide us with the
opportunity to commit resources that are in furtherance of the City's policies, goals, and
priorities. The Fiscal Year 2013-14 proposed General Fund expenditure budget, including
capital improvements, is projected at $162.3 million, an increase of 3.2%, or almost $5
million, over the amended Fiscal Year 2012-13 General Fund budget. Total proposed City
expenditures in Fiscal Year 2013-14, including debt service and capital projects, is $278.9
million. In summary, the balanced budget that you see in Fiscal Year 2013-14 lays the
groundwork for a stronger City government in the following key areas:
Vital Support System for Law Enforcement
• A new Crime Suppression Unit consisting of three officers and one Sergeant will
mitigate State legislative action that shifts, and thereby will result in the early release
into our community of, convicted felons from State prisons to County jails.
• A reinvestment in the 800MHz system will provide vital communication support to
public safety and other emergency operations.
Community Serving Facilities and Basic Infrastructure
• A General Fund contribution of $7 million to the Facilities Financial Planning Reserve
will fund facility projects such as: Marina Park, Sunset Ridge, Lifeguard
Headquarters, and the Corona del Mar Fire Station.
Resolution 2013-_ Fiscal Year 2013-14 Budget Adoption
June 11, 2013
Page 3
A General Fund contribution of $5 million to the City's Capital Improvement Program
will provide for Balboa Boulevard landscape rehabilitation, street and sidewalk
maintenance, park structure replacements., and other projects.
Reducing the Cost of Personnel
• A reduction of 16 Full-time and 14 Part-time FTE positions (net of the law
enforcement personnel additions mentioned above) will reduce the cost, while
maintaining the same level, of service delivery.
• Increased pension contributions from City employees and lower tier benefits for new
employees will reduce the cost of personnel over the long -run.
• Accelerated payments on pension unfunded liability and retiree insurance unfunded
liability will reduce the cost of the City's long-term liability.
Better and Smarter Technology — Funding for the following technology enhancements will
allow the City to function with greater efficiency:
Integrated financial and human resource, or "Enterprise Resource Planning" (ERP)
system.
• Computer-aided dispatch system.
• Online permitting system.
• Web and phone applications to provide the community with convenient access to the
City's business applications.
Budget Checklist
The City Manager is recommending changes to the Proposed Fiscal Year 2013-14 Budget
released on May 9, 2013. These changes are found in the Budget Checklist on Attachment
A, which is an itemized listing of all proposed budget checklist items. As stated in City
Council Policy F-3, all Council directed changes to the City Manager's Proposed Budget
shall be added to the Budget Checklist. The Mayor will call for a straw vote on each
checklist item during the public meeting.
The expenditure appropriations from the Proposed Fiscal Year 2013-14 Budget and the
Budget Checklist are summarized as follows:
FY 2013-14 Proposed
Expenditures General
Fund
Proposed Operating & CIP Budget
Operating Budget Expenditure Adjustment
Supplemental Operating Expenditure Budget Requests
Supplemental CIP Expenditure Budget Requests
CIP Rebudgets'
Total FY2013-14 Expenditure Budget & Checklist
$ 162,340,392
(1,846,675)
1,916,470
720,000
175.252
$ 153,305,438
All Other
Funds
$ 116,577,484
2,762,721
459,786
7,518,740
$ 127,318,731
Total All Funds I
5 278,917,876 1
4,679,191
1,179,786
7.693.992
$ 290.624.170 1
' A rebudget moves a capital improvementproject appropriation from one fiscal year to the next as most capital
projects span more than one fiscal year.
Resolution 2013-_. Fiscal Year 2013-14 Budget Adoption
June 11, 2013
Page 4
The revenues appropriations from the Proposed Fiscal Year 2013-14 Budget and the
Budget Checklist are summarized as follows:
Proposed Revenue Budget
Supplemental Revenue Estimates
Total FY 13.14 Revenue Budget Checklist
Fund
$ 165,872,691
170,000
$ 166,042,691
Funds
$ 87,831,650
1,459,534
$ 89,291,184
Total All Funds
$.253,704,341
8
It is important to note that the Fiscal Year 2013-14 General Fund budget is balanced, as
indicated below, with a surplus of $600.
FY 2013-14 Proposed Budget 8 Checklist - Surplust(Deficit) General
Fund
Operating Surplus - AsPrinted $ 751,395
Expenditure Adjustment. 1,846,675
Proposed Operating Surplus $ 2,598,070
FY 13.14 Checklist Operating Expenditures
$ 1,916,470
FY 13-14 Checklist CIP Expenditures
720,000
FY 13-14 Checklist Revenue Estimates
(170,000)
""FV 13-14 Adjusted General Fund Transfer to Tidelands
131,000
Checklist Changes that Affect the General Fund
$ 2,597,470
Adjusted Operating Surplus $ 600
-'The General Fund transfer of $131,009 to the Tidelands Fund is needed to fund additional contemplated Tidelands expenditures
on the checklist.
Staffing Changes
The City Manager's Proposed FY 2013-14 Budget includes funding for 736 full-time and
111.88 full-time equivalent (part-time) positions, a reduction of 16 full-time and 14.26 full-
time equivalent positions from FY 2012-13. This is the result of continued departmental
restructuring, realignment of functions, and contracting out. Four additional position
changes are being submitted for consideration on the Budget Checklist:
Full-time Position Budget Checklist Changes:
Add one Administrative Assistant in Public Works
Delete the Cultural Arts Coordinator position in Library & Cultural Arts
Full-time Equivalent (part-time) Position Budget Checklist Changes:
Add .5 FTE Senior Fiscal Clerk in Finance/Revenue
Delete .47 FTE Office Assistant in Public Works
Resolution 2013-_: Fiscal Year 2013-14 Budget Adoption
June 11, 2013
Page 5
If the position changes on the Budget Checklist (Attachment A) are approved as listed, it will
result in funding for 736 full-time and 111.91 full-time equivalent (part-time) positions, the
lowest staffing levels in more than 10 years.
Planning Commission Review
The Planning Commission agenda for their June 6, 2013, meeting includes their review of
the Proposed Fiscal Year 2013-14 Capital Improvement Program to determine consistency
with the General Plan.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment) and
15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential
for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the
meeting at which the City Council considers the item). The Public Notice for this item was
published in the Daily Pilot on June 1, 2013.
Prepared by:
Z11=
Submitted by:
Dan Matusiewicz Dave Kiff U
Finance Director(f�T City Manager
Attachment: A. FY 2013-14 Budget Checklist
B. Resolution 2013-
ATTACHMENT
Budget Checklist - Amendments to the Proposed Budget
Fiscal Year 2013-14
Budget
Department/Account NumberlDescription Increase (Decrease) Approved
1GENERAL-FUND',SURPLUSADJUETMENT'=____
— _—
Expenditure adjustment - Move requested budget appropriation to surplus
$
(1.846,675
-k'C-_ - , O;THE'IPROPOSED BUDGET7A53PRINTED =;OPERATING;EXPENDIT.UREST
RANGES T_ ___
Administration
Management Increases
S
35,000
Debt Service - Investment Advisor
$
(32,000)
Part-time Senior Fiscal Clerk salary& benefits at.5 FTE
$
35,470
General Fund Transfer to FFP Reserve Fund
$
1,000,000
General Fund Transfer to Facilities Maintenance Plan Fund
$
250,000
City Council
Crystal Cove Cottages - Renovation Support
$
20,000
Balboa Island Historical Society
$
15,000
Newport Bay Conservancy
$
30,000
Community Development
City Hall Re-Use Consulting
$
50.000
Building & Plan Check Inspection Services (1001yo revenue offset)
$
100,000
Library & Cultural Arts
Transition to Cultural Arts Contract.
$
(68,000)
Municipal Operations
Electrical Maint / Repair (Streetlight Energy Efficient Demo)
$
50,000
Police
Training Sergeant Promotion
$
49,000
Public Works Department
CIP Traffic Operations Support and Contract Support
$
350.000
Salaries and Benefits (Admin Staffing Adjustment)
$
76,679
Salary savings (Admin Staffing Adjustment)
$
(76,679)
Tidelands
Market Reuse Study on Newport Pier Concession
$
25,000
Workers' Compensation & General Liability
General Liability Insurance Excess_
$
45,000
General Liability Property Insurance
$
357,000
Workers' Compensation Excess Insurance
$
35,000
Equipment Fund
Three additional Police. vehicles (2 motorcycles & i CSI van)
$
75,000
.800 MHz Radios
$
393.541
IT
IT ISF Operational and Strategic Maintenance and Operating & Capital Outlay
$
1,259,930
Additional CAD/RMS Implementation Costs
$
454,250
Narcotic Asset Forfeiture Fund
Additional crime suppression expendilures
$
150,000
TOTAL CHANGES TO THE PROPOSED OPERATING EXPENDITURE BUDGET $
4,679,191
TOTAL CHANGES TO THE PROPOSED OPERATING EXPENDITURE BUDGET BY FUND
General Fund
$
1,916,470
Debt Service Fund.
$
(32.000)
Narcotic Asset Forfeiture Fund
$
150,000
General Liability Insurance Fund
$
402.000
Workers Compensation Reserve Fund
$
35.000
IT ISF
$.
1,714,180
Equipment Replacement Fund
$
468,541
Tidelands Operating Fund
$
25,000
Total Changes to the Proposed Operating Exp Budget
S
4,679,191
- CHANGES"T,OhTHE'PROPAO PE)'?BUDGET£?A51P,RINTEDn +CIp EXP,ENDIT;URES _
Capital Improvement Project
Sediment Removal - Selenium al Big Canyon Golf Course
$
75,000
_Pump Station and Water Well Project (Southern Calif Edison component)
$.
253,786
Newport Harbor Dredging Permit
$
56.000
Structural. Rehab of the Doryman Fleet Facility
$
50,000
City Street Light Circuit Rehabilitation
$
645,000
Arts & Culture Master Plan
$
100,000
TOTAL CHANGES TO THE PROPOSED CIP EXPENDITURE BUDGET
$
1,179,786
TOTAL CHANGES TO THE PROPOSED CIP EXPENDITURE BUDGET BY FUND
General Fund
$
72(),000
Tidelands Fund
$
106,000
Contributions Fund
$
253,766
Public Arts Fund
$
100,000
Total Changes to the Proposed CIP Exp Budget
$
1,179,766
^"LCHANGES,T,O 7HE PROPO,SED;;BUDGEU,'A RINTED_-;REVENUE;=—'--!'
Budget
Department/Account Number/Description
Increase (Decrease) Approved
Building & Plan Check Inspection Services (100% revenue offset)
$
100,000
General Fund Revenue Adjustment
$
20,000
Streetlight Energy Efficiency Demonstration (from SCE)
$
50,000
Tidelands Increment Revenue- Harbor Capital Fund
S
1,205,748
Contributions Fund - Southern California Edison Refund
$
253,786
TOTAL CHANGES TO THE PROPOSED REVENUE BUDGET
$
1,629,534
TOTAL CHANGES TO THE PROPOSED REVENUE BUDGET BY FUND
General Fund
$
170,000
Tidelands Harbor Capital Fund
$
1,205,748
Contributions Fund
$
253,786
Total Changes to the Proposed Revenue Budget ...........
$
1,629,534
_
- -APITAL• IMP_R • VEMENT P,ROGRAM:-;F3EBUDGETS--- -- --
._. ___ —_
Department/Account Number/Description
Public Works
7011-0 7002 0 40 City Hall Interim Use Plan
Budget
Increase (Decrease) Approved
$ 28,395
7012-C2502010
Storm Drain Interceptors- Tier _
$
(22,058)
7012-C2502014
Storm Drain System Repairs and Sliplining
$
(1.,400)
7013-C2001009
Sidewalk Curb and Gutter Replacement and ADA Improv
$
25,000
7013-C2002063
Balboa Boulevard Landscaping
_
$
(22,265)
7013-C3001003
Transportation Model Maintenance. and Update
$.
125,000
7013-C3001008
Traffic Signal Equipment Enhancement Program
$
(10,420)
7013-C3002016
CitWwide Street. Signage, Striping and Marking
$.
23,000
7014-C5002002
Buck Gully Stabilization
$
30,000
7181-C3002018
Traffic Signal Modernization Phase 6
$
120,000
7231-C4402007
Seawall and Bulkhead Modifications
$
80,000
7231-C4402012
Eelgrass.Survey Lower Harbor
$
(50,000)
7231-C4402014
Vessel Waste Pumpout Station Repair
$
(15,000)
7231-C4801003
Bay Beach Sand Management and Minor Dredging
$
250,000
7251-C3002021
Eastbluff Bike Lane
$
(88,712)
7251-C4402014
vessel waste Pumpout Station Repair
$
(55,000)_
7255-C5002006
Newport Coast ASB5 Protection Program
$
(41,000
7261-03002018
Traffic Signal Modernization Phase 6
'$
280,000
7271-C1002021
Central Library HVAC Refurbishment
$
(15,050)
7284-C2502010
Storm Drain Interceptors - Tier 1
$
(96,799)
7410-C1002009
Civic Center and Park
$
677,764
7410-01002030
Civic Center and Park - Construction
$.
5,456.318
7410-01002033
Civic Center and Park - FF&E.
$
4,153
7410-01002035
Civic Center and Park - OCIP Loss Claims
$
967.379
7410-CIO02041
Civic Center and Park -ITIAV
$
119,094
7411-C4002002:
Marina Park
$
(174,070)
7412-05100515
Sunset Ridge Park
$
19,000
7459-C5100379
Santa Ana Heights Utility Undergrounding
$
53.755
7541-C7002004
Big Canyon & Pon. Streets Sewer Diversion Improvements
$
26,905
TOTAL CAPITAL PROJECT REBUDGETS
CAPITAL IMPROVEMENT PROGRAM REBUOGET SY FUND
General Fund
Building Excise Tax. Fund
Contributions Fund
Environmental Contributions Fund
Civic Center Fund
Marina Park Fund
Measure M Competitive Fund
Misc SAH Projects Fund
State Gas Tax Fund
Sunset Ridge Park Fund
Tidelands Fund
Transportation and Circulation Fund
Wastewater Capital Fund
Total CIP RebudgetslChanges
$
$
$
$
$.
$
S.
S
$
$
$
$
$
S.
$
7,693,992
175,252
(15,050)
(143,712)
(41,000)
7,224,708
(174,070)
(96.799)
53,758
120,000
19,000
265,000
280,000
26,905
7,693,992
Attachment B
RESOLUTION NO. 2013 -
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH; ADOPTING THE
BUDGET FOR THE 2013-14 FISCAL YEAR.
WHEREAS, the City Manager of the City of Newport Beach has prepared and.
submitted to the City Council a proposed annual budget for the 2013-14 Fiscal Year; and
WHEREAS, the City Council has reviewed said proposed budget, detennined the time
for the holding of a public hearing thereon, and caused a. notice of said hearing to be published not less
than ten (10) days prior thereto in the official newspaper of the City, and copies of the proposed budget
were made available for inspection by the public in the Office of the City Clerk and the Finance
Deparhnent at least ten (10) days prior to said hearing; and
WHEREAS, the City Council has held a public hearing on said proposed budget on.
June 11, 2013, and has made such revisions in the proposed budget as it deemed advisable; and
WHEREAS, the City Manager has the authority to approve budget increases not to
exceed $10,000 in any Budget Activity or Capital Project, in accordance with Council. Policy F-3
(Budget Adoption and Administration); and
WHEREAS, the City Manager may accept donations or grants of up to $10,000 on.
behalf of the City and appropriate the funds for the purpose intended, in accordance with. Council.
Policy F-3 (Budget Adoption and Administration); mid
WHEREAS, all requirements of the City Charter relating to the preparation and.
consideration of the animal budget have been complied with.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Newport
Beach that the budget of the City of Newport Beach for the 2013-14 Fiscal Year as revised by the City
Council via the Budget checklist is hereby adopted. The total approved appropriation of $278,917,876
Attachment B
($260,897,610 with Transfers Out), plus any items on the approved Budget Checklist attached as
Attaclunent A, has been allocated to the following ftiinds in the amounts hereinafter shown:
Fund
General Fund
Ackerman Fund
CD:BG Fund
Asset Seizure Fund
AQMD Fund.
SLESF Fund,
State Gas Tax Fund
Measure M Fund
Tidelands Fund
Contribution. Fund
Circulation Fund
Building Excise Tax
Environmental Liab.
Newport Annexation
Debt Service
Civic Center
Marina Park
Sunset Ridge Park:
LG Headquarters
Strategic Planning
CdiM_Fire Station' Rebuild.
Big Cyn Reservoir Maint Yard
MISC SAB Projects Fund
Major Maintenance & Repair
Insurance Reserve Fund
Retiree Medical Fund
Comp. Absence Fund
IT Strategic Fund
Equipment Fund
Water Fund
Wastewater Fund
Total Appropriations
Operating
Budget
$155,673,022
5,000
327,397
250,220
10,500
138,222
0
0
2,509,600
0
0
0
176,886
1,200,000
10,633,017
0
0
0
0
0
0
0
0
0
5,963,51.0
3,428,403
2,670,050
7,782,977
4,735,471
19,281,1.14
2,845,911
$217,631,300
Capital Budget
$6,667,370
0
0
0
0
0
6,298;350
6,860,775
2,930,000
7,261,500
300,000
340,000
0
0
0
500,000
1.5,275,000
8,750,000
1,384,000
187,601
250,000
750,000
100,000
150,000
0
0
0
0
0
2,737,000
544,980
$61,286,576
Total Budget
$1.62,340,392
$5,000
$327,397
$250;220
$10,500
$138,222
$6,298,350
$6,860,775
$5,439,600
$7,261,500
$300,000
$340,000
$1.76,886
$1,200,000
$10,633,017
$500,000
$15,275,000
$8,750,000
$1,384,000
$1.87,601
$250,000
$750,000
$100,000
$150,000
$5,963,51.0
$3,428,403
$2,670,050
$7,782,977
$4,735,471
$22,018,1.1.4
$3,390,891
$278,917,876
BE IT FURTHER RESOLVED that a copy of said approved budget, certified by the
City Clerk shall be filed with the persons retained by the City Council to perform auditing functions
for the Council, and a further copy shall be placed, and shall remain on file, in the Office of the City
Clerk Where it shall be available for public innspection.
Attachment B
BE IT FURTHER RESOLVED that the budget so certified shall be reproduced and.
copies made available for the use of the public and of departments, offices and agencies of the City.
ADOPTED the i I °i day of June, 2013.
MAYOR
ATTEST:
CITY CLERK
Attachment: Budget Checklist
11
PROOF OO F
PU:LfCP,TlON
STATE OF C LIFO;"'JIH
)ss-
COUNTY
I am a citizen of the United States and a
resident of the County of Los Angeles; I
am over the age of eighteen years, and
not a party to or interested in the notice
published. I am a principal clerk of the
NEWPORT BEACH/COSTA MESA
DAILY PILOT, which was adjudged a
newspaper of general circulation on
September 29, 1961, case A6214, and
June 11, 1963, case A24831, for the
City of Costa Mesa, County of Orange,
and the State of California. Attached to
this Affidavit is a true and complete copy
as was printed and published on the
following date(s):
Saturday, June 1, 2013
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on June 10, 2013
at Los Angeles, California
i(1113 ,hitt < 4 ,":'1 r `_ `/
r
Juriea,'201
CITyYg F=NEWPORTj+BEACH;
I ANITOPMSIEWICZT(999)C4,4,312
LFGA1-')NOTICE -
NOTICHIIS7HEREBYGNENTHA,T the CityCoun-W ofthe CitK Newport,.
Beach will Bold a pubhc hearing regardmg�Ero``p�osedjBugehe'�`�2013- 4�
FtscalaYeaPtpursuant to Section�11021of.[he)NewporttBeac Ctty�aI t
NOT�ICETiI3;HEREBYfOIUEN tTAAT saidlpubhc}h�earmg w[Itdbetha,]"doh
the 11th dayjof{lune 2013yzPthe}houraofr7i00 p m Jm,the C y IialltC,bumff
Chambers;r100fCrvw Cenfef'Drive Newpo2e,Beachat
,CAt92660, ),w111
ttme*anAplacemteresYe`ersons [nay,a-p a'r]andbe heard [hereon
TOTA DUDGETALlFUNDSIINCEUDING CAPITAL IMPROVEMENTS
�,SalarresandBenefits,
Maktenance and OpaFatioas
5128,011;14,,4,
73,b� 28M9057
1CaprtaljOutl'ayi _
- - r,"496,5(2
Caprd1Ji g;ovements -
Seiv, ice.
-. 6 75 6
,.Debt -
,If�4�73Q,
.To �Bu4,90t "'
5278.917.876