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HomeMy WebLinkAboutC-5893(C) - Grant Agreement for Special Event Support Program FY 14-15 - Balboa Island Wine WalkGRANT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND BALBOA ISLAND MARKETING INC. This Grant Agreement ( "Agreement ") is entered into this 10th day of June, 2014 ( "Effective Date "), by and between the City of Newport Beach, a California municipal corporation and Charter City ( "City"), and BALBOA ISLAND MARKETING INC., a California nonprofit corporation located at 2865 East Coast Highway, Suite 360, Corona del Mar, CA 92625 ( "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 Balboa Island Wine Walk ( "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 One Thousand Dollars ($1,000.00) ( "Grant Funds ") to Grantee pursuant to certain conditions regarding expenditure, reporting, and accounting requirements. NOW, THEREFORE, the Parties agree as follows: 1.1. City awards to Grantee Grant Funds in the amount of One Thousand Dollars ($1,000.00) 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 at the time of execution of this Agreement. 2. TERM The term of this Agreement shall commence on the Effective Date and shall continue in full force and effect until June 30, 2015, 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 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). BALBOA ISLAND MARKETING INC. Page 2 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. 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 BALBOA ISLAND MARKETING INC. Page 3 not expended by or before June 30, 2015, 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 law or otherwise without prior written consent of City. Any attempt to do so without written consent of City shall be null and void. BALBOA ISLAND MARKETING INC. Page 4 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 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658 9.3. All notices, demands, requests or approvals from City to Grantee shall be addressed to Grantee at: Attn: Sheri Drewry BALBOA ISLAND MARKETING INC. 2865 East Coast Highway, Suite 360 Corona del Mar, CA 92625 i[1llY>f ;[Whiff -4 116IL 10.1. Termination for Cause. Grantee shall be in default if Grantee fails or refuses to perform any duty required by the Agreement or performs in a manner inconsistent with the terms, conditions and restrictions in this Agreement. In such event, City shall give Grantee, thirty (30) days written notice to cure, if the default can be cured and City shall be entitled to terminate this Agreement if Grantee has not cured the default within the thirty (30) day cure period. City shall be entitled to immediately terminate this Agreement if the default cannot be cured through corrective action. If terminated for cause, Grant Funds shall be returned to the City pursuant to Section 5. This Agreement is made on an annual basis, and as such is subject to non - renewal at its termination. 10.2. Termination without Cause. City may terminate this Agreement at anytime with or without cause upon seven (7) days written notice to Grantee, any remaining Grant Funds in Grantee's possession at the time of termination shall be returned to City pursuant to Section 5. 10.3. Specific Performance. Grantee agrees that the City has the legal right, and all necessary conditions have been satisfied, to specifically enforce Grantee's obligations pursuant to this Agreement. 11. STANDARD PROVISIONS 11.1. Recitals. City and Grantee acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. BALBOA ISLAND MARKETING INC. Page 5 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. Severabilitv. 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. 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. BALBOA ISLAND MARKETING INC. Page 6 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: ca 114 By: , /� /�. Aaron C. Harp �04 6 (Iq)tN City Attorney ATTEST: Date: CITY OF NEWPORT BEACH, A California municipal corporation Date: oe By. " Dave K @ff City Manager GRANTEE: BALBOA ISLAND MARKETING INC., a California nonprofit corporation Date: By: ak C' 4 ✓ By Leilani I. Brown City Clerk Attachment: Exhibit A: Grant Proposal Date: 7_ John Robinson Treasurer [END OF SIGNATURES] BALBOA ISLAND MARKETING INC. Page 7 Exhibit A Grant Application and Event Budget Locey, Mary From: form engine @fs23.formsite.com Sent: Friday, March 21, 2014 3:39 PM To: Locey, Mary Subject: Special Event — Balboa Island Marketing #7935421 Special Event — Application for Financial Support Reference #: 7935421 Status: Complete Date: 2014 -03 -21 15:39:24 User: 107.184.15.135 (Chrome - Windows) Referrer. httos:/ ifs23 .fomsite.coni/ms/fomiLoeinRetum Form Login Account (optional) New Users / Returning Users CLICK HERE to setup or return to your account for this Form. Creating an account enables you to return to this form and your submitted results. An account will also enable you to partially complete this form and return later to fmish 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 21, 2014. 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 does not have to 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 meant 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 evenPs 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, 2014 and June 30, 2015. * Name of Applicant Organization: Balboa Island Marketing Inc. / CMC Inc. Applicant Representative Contact Information * First Name Peggy * Last Name Fort * Full Address c/o CMC Inc. 1550 Bayside Drive * Phone Number 9496750501 * Email Address peenvfort(gaskcmc.com * Type of Entity FX Corporation ❑ LLC ❑ LLP ❑ Sole Proprietor ❑ Other Authorized Agents for Entity (signing authority for entering into contracts): * First Name Peggy * Last Name Fort * Title President & CEO * First Name Peggy * Last Name Fort * Title CFO * Entity Address (if different from applicant): SAME * Name of Event: Balboa Island Wine Walk * Event Date(s): September 27, 2014 * Is this an annual event? 2 FX yes ❑ no * Event location/venue: Balboa Island - Select Marine Ave. Merchant Locations * Type of event: ❑ Art/Culture FI Sports FICommercial ❑ Social X Community Special Interest ❑ Other * Have you previously received City support for this or any other event sponsored by your organization? RX Yes ❑ No * If yes, please list the event(s), year(s) and amount(s): CMC Inc. has received City support for the following client community events: Newport Beach Restaurant Week FY 2007 -2014 From $6k - $50k Annually Orange County Marathon - $50k FY 2007 &2008 * Is there a fee to enter the event? If yes, what is the amount of the fee? There is no fee to attend the event If participants would like to purchase a commemorative Balboa Island Wine Walk glass and sample fine wines in select merchant locations pre -sale tickets are $30 or $40 on the day of event per person. * Describe what, if any, portion of the event is FREE to the public. The public is welcome to attend the Balboa Island Wine Walk event and is encouraged to join in on the fun while shopping and dining along Marine Ave. The public can enjoy various entertainment and enter to win merchant promotional giveaways and mffles at no charge. * Brief Description of Event (150 -word maximum): The merchants of the Balboa Island present The First Annual Balboa Island Wine Walk Date: Saturday, September 27th, 2014. the public is invited to stroll Marine Avenue boutiques and shops while sampling fine wines and light hors d'oeuvres inside various participating merchant locations.Tickets are: $30 per person (Pre -sale) $40 per person (Day of the Event if Available) Check -In to get wristbands or commemorative wine glass. Event starts at 3PM and ends with a raffle at 8PM. Location: Marine & Agate Ave. Balboa Island Contact: (949) 675 -0511 The Balboa Island Wine Walk is produced by CMC Inc in partnership with Balboa Island Marketing Inc. (BIMI) BIMI Marketing Mission: Develop and maintain brand and marketing programs —in partnership with our strategic partners that keep Balboa Island top -of -mind as a premier destination to visit in Newport Beach, California. BIMI Marketing Objective: Maintain and increase resident and leisure travel to and spending on Balboa Island. * Anticipated Event Attendance (indicate participants vs. spectators, if applicable): Participants: 500 - 1,000 local residents & visitors throughout event. Spectators: 1,000 * Summarize applicant's prior event experience (100 -word maximum): California Marketing Concepts, Inc. has created a niche as one of Southern California's top full- service boutique marketing, public relations and event management £inns. Based in Corona del Mar, California, CMC Inc. was founded in 1999 by twenty one year brand marketing & public relations veteran, Peggy Fort. Since its inception, CMC Inc. has built a high profile local clientele and results- driven reputation working with direct referral clients only in Southern California. What has always defined CMC Inc. is its ability to offer cost effective full- service strategic marketing, public relations & event management service ROI - without the big agency pricing. * 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): N/A CMC Inc. is organizing the First Annual Balboa Island Wine Walk Event in September 2014. Financial Support Request * Amount of cash requested (do not request fee waivers or in -kind donations): 10,000 * Briefly describe how the requested funds be used. For Hard Costs & Event Operational Expenses (See attached budget) * 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 ❑ 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? rX Yes F1 No * The request for City support must include a list of other City entities or groups (e.g., City Arts Commission, Newport Beach Restaurant Association Business Improvement District) from which the applicant is seeking financial support. Are you seeking financial support from other City entities? FYI Yes ❑ No * If you answered yes above, please list the entities or groups and the amount of financial support requested from each: Balboa Island Marketing Inc. _ $5,000 Attach event budget (2 -page maximum) Fvlemz7N 2014 Budget - Balboa Island Wine Walk.odf BALBOA ISLAND MARKETING INC. BALBOA ISLAND WINE WALK BUDGET *Drafted March 2014 PROJECTED CASH & IN -KIND REVENUE FORECAST AMOUNT Event Corporate Cash &In -Kind Sponsorships $ 35,000 City Of Newport Beach — Grant Support FY 203.4 - 20-15 $ 10,000 Balboa Island Marketing Inc. Contribution $ 5,000 *TOTAL BUDGET— COMBINED CASH EXPENDITURES + IN -KIND INVESTMENT VALUE S PROJECTED IN -KIND REVENUE VALUE: $ 25,000.0c PROJECTED CASH: $ 251000.0c PROJECTED IN -KIND REVENUE VALUE BREAKDOWN AMOUNT Media Partnerships & Event Marketing In -Kind Sponsorships $ 10,000 Sponsor & Purveyor In -Kind Contributions $ 10,000 Merchant In -Kind Contributions— Launch Events, etc. $ 5,000 PROJECTED EXPENDITURE BREAKDOWN AMOUNT EVENT OPERATIONAL EXPENSES Sponsor & Purveyor In -Kind Contributions $ 10,000 Merchant In -Kind Contributions— Launch Events, etc. $ S,000 Misc. Hard Costs - Commemorative Wine Glasses, Event Supplies, etc. $ 2,500 Day of Event Staffing $ 1,500 Event Administration & Accounting $ 2,500 Insurance & Liability $ 1,5oo Signage & Logistics $ 1,000 Total,Cash- $24.00a BRANDING. CREATIVE. COLLATERAL DEVELOPMENT & PRINTING Logo Design $ Soo Marketing Collateral— Promo Cards & Posters $ 3,000 Ad Campaign Creative & Graphic Design Production - Vendor Fee $ 1,500 Total Cash- S 5,,000 1 MEDIA ADVERTISING. —PRINT & ONLINE CAMPAIGNS & PROMOTIONS Media Partnerships & Event Marketing In -Kind Sponsorship Value $ 10,000 Print & Online Media Partnership Campaigns- Hyper Local Community Market Local Media Outlets $ 5,000 Total Cash: $15f000 PUBLIC & MEDIA RELATIONS CAMPAIGNS Business Wire Press Center & Online PR Services $ 1,500 Total: $ s,soo PARTNERSHIP DEVELOPMENT. SPONSORSHIP SOLICIATAION & SERVICING Internal Industry Solicitation, Marketing & Sponsorship Package Production & Result Analysis Partnership Development & Commissions $ 2,500 *Contingent Based on Incentive Bonus Plan on Cash Revenue Total- $ 2,1;00 SOCIAL MEDIA & STRATEGIC INTERNET MARKETING CAMPAIGNS SEO Plan — Google & Face Book Ad Word Campaigns $1,500 Social Networking Campaigns & Blog Development — Vendor Fees Cross Promotional Campaigns & Contest Development $ 500 Total: $ 29000 *TOTAL EXPENSES- $ 50,000.0 6-' BALBOA ISLAND MARKETING INC. t A Merchants Association > 2013 -2014 ANNUAL REPORT The first year of the Balboa Island Marketing Inc. was one of many adjustments and achievements. The Corporation was formed and applied for a 501 (c) 6 Federal Status as a not for profit mutual benefit business corporation. The Association is waiting for a determination letter from the IRS. During the period between when funding was received and the end of the fiscal year many successes have been achieved. Balboa Island Marketing Inc. accomplishments during fiscal year 2013 -2014 follow: *Worked with California Marketing Concepts, a marketing consultant, in developing a marketing plan that encompasses print, advertising, website renovation, social media and special event plans. *Continued decorating Marine Avenue with flags for the summer and the parade. A holiday lighting program was also created to make the Marine Avenue shopping area festive and to provide a sense of destination for holiday shopping. *Placed ads in locally and nationally distributed visitor guides such as the Newport Beach Visitors Guide, OC Max Weekly, and Certified Folder Distribution. *Advertised on the Newport Beach Pocket Picture Map and in the Laguna Beach Pocket Map Website. *Contracted with Firebrand Media to restart the http: / /balboa- island.net website, providing seasonal information and announcements as well as an electronic merchant directory. *Kept detailed records, books, and minutes of meetings and events. The Association will finish the Fiscal Year with approximately $10,000 to pass over into the next fiscal year. BALBOA ISLAND MARKETING INC. A Merchants Association 2014 -2015 PROJECTED PROJECTS Looking forward to the next fiscal year, BVMA Inc. has the following objectives: *Create a new logo and collateral brochures cross referencing the balboa- island.net website. *Create a 'Pay to Play" structure of additional marketing investment that will enable merchants in the Association to maximize their advertising dollars through cooperative campaigns. *Institute and annual "Wine Walk" to encourage residents and visitors alike to tour the entire shopping area and linger in stores. *Continue holiday and seasonal decorating *Institute a bike rack program to provide location identifying bike racks *Continue to improve the website, incorporating contemporary social media strategies and perhaps a web based "app" for the Island *A direct mail campaign to local residents to increase visibility to year round shoppers *A campaign to hand out Balboa Island "goodie bags" to all merchants and to visitors as part of a frequent buyer or promotional. *Maintain memberships with Anaheim Visitors Bureau, the Newport Chamber, and the Newport Beach & Co. *An annual meeting of the Association *Develop new special events that would bring residents in during slower seasonal periods. *Create liaisons with concierges in local hotels that will refer Balboa Island as a major destination point. *Work with the City in developing alternatives to parking on the Island during peak demand periods. *Piggybacking off of other City wide events like the Film Festival as follow up to after event entertaining and shopping *Stress public relations in order to get no cost exposure for the Island *Sponsor a photography contest to get images of Balboa Island for future promotional efforts *Administer the Association using a third party consultant, as well as miscellaneous costs including the annual meeting. The merchants of Balboa Island appreciate the efforts of the City Council and your continued support of their BID. BALBOA ISLAND MARKETING INC. A Merchants Association Budget Outline July 1, 2014 — June 30, 2015 Funds Available FY End 2014 $10,000 Funds from City 2014 $40,000 Additional Funding from the City $ 1,000 Coop Buy In Program (Estimated) $30,000 Sponsorships and Participation Fees $21,000 Total Available Funds $102,000 Expenditures Marketing & Advertising $77,290 Branding Ad Creative Media Partnerships Direct Mail Concierge Program Internal Marketing Package Web Site Development PR Campaigns Consulting Fee Memberships Special Events $5,000 Wine Walk Village Beautification $5,000 Holiday Decorating Seasonal Decorating Administration $9,580 Administration Annual Meeting Mailings, Outreach Total Planed Expenditures $96,870 2:39 PM Balboa Island Marketing Inc.gbw 07/07114 Balance Sheet Accrual Basis AS of June 30, 2014 Page 1 Jun 30, 14 ASSETS Current Assets Checking /Savings Union Bank 6153 16,030.34 Total Checking /Savings 16,030.34 Total Current Assets 16,030.34 TOTAL ASSETS 16,030.34 LIABILITIES & EQUITY Equity Unrestricted Net Assets 33,058.69 Net Income . 17,028.35 Total Equity 16,030.34 TOTAL LIABILITIES & EQUITY 16,030.34 Page 1 2:39 PM Balboa Island Marketing Inc.gbw 07107114 Profit & Loss Accrual Basis July 2013 through June 2014 Ordinary Income /Expense Income Contributions Direct Public Support Corporate Contributions Total Direct Public Support Grants Municipal Total Grants Program Income Membership Dues Program Service Fees Total Program Income Total Income Expense Licenses /fees annual meeting expense credit card fees Adminstrative Bank Charges Bookkeeping Total Adminstrative Program Expenses Marketing DuestSubs Outside Contract Services Supply Reimbursement Outside Contract Services - Other Total Outside Contract Services Total Marketing BannerslFlags Books, Subscriptions, Reference Postage, Mailing Service Printing and Copying Website Expenses Holiday lighting Advertising Promotions Internet Print Total Advertising Total Program Expenses Total Expense Net Ordinary Income Net Income Jul '13 -Jun 14 1.00 420.00 420.00 40,000.00 40,000.00 1,250.00 1,750.00 3,000.00 43,421.00 20.00 26.00 41.28 0.00 4,735.00 4,735.00 460.00 469.39 10,500.00 10,969.39 11,429.39 1,600.54 24.00 24.00 58.86 1,001.31 2,430.28 1,000.00 1,650.00 2,850.00 5,500.00 22,068.38 26,890.66 16,530.34 16,530.34 Page 1