HomeMy WebLinkAboutC-5893(J) - Grant Agreement for Special Event Support Program FY 14-15 - Surf ContestGRANT AGREEMENT
n BETWEEN THE CITY OF NEWPORT BEACH AND
e5 NEWPORT HARBOR HIGH SCHOOL SAILORS SURF CLUB
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fl) This Grant Agreement ( "Agreement ") is entered into this l -1 14day of- November,
2014 ( "Effective Date "), by and between the City of Newport Beach, a California
municipal corporation and Charter City ( "City "), and Newport Harbor High School Sailors
Surf Club, a California nonprofit corporation located at 600 Irvine Avenue, Newport
Beach, CA 92663 ( "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 16th Annual Newport Classic Surf
Contest ( "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 and
00/100 ($1,000.00) ( "Grant Funds ") to Grantee pursuant to certain conditions
regarding expenditure, reporting, and accounting requirements.
NOW, THEREFORE, the Parties agree as follows:
furl :11-11111
1.1. City awards to Grantee Grant Funds in the amount of One Thousand Dollars
and 00/100 ($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 as follows (select one):
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
31. 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).
Newport Harbor High School Sailors Surf Club 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
Newport Harbor High School Sailors Surf Club 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.
Newport Harbor High School Sailors Surf Club 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
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: Alan A. Flores
Newport Harbor High School Sailors Surf Club
P.O. Box 1048 Ave �`4uq
Newport Beach, CA 92660
10.TERMINATION
10.1. Termination for Cause. Grantee shall be in default if Grantee fails or refuses
to perform any duty required by the Agreement or performs in a manner inconsistent
with the terms, conditions and restrictions in this Agreement. In such event, City shall
give Grantee, thirty (30) days written notice to cure, if the default can be cured and City
shall be entitled to terminate this Agreement if Grantee has not cured the default within
the thirty (30) day cure period. City shall be entitled to immediately terminate this
Agreement if the default cannot be cured through corrective action. If terminated for
cause, Grant Funds shall be returned to the City pursuant to Section 5. This Agreement
is made on an annual basis, and as such is subject to non - renewal at its termination.
10.2. Termination without Cause. City may terminate this Agreement at anytime
with or without cause upon seven (7) days written notice to Grantee, any remaining
Grant Funds in Grantee's possession at the time of termination shall be returned to City
pursuant to Section 5.
10.3. Specific Performance. Grantee agrees that the City has the legal right, and
all necessary conditions have been satisfied, to specifically enforce Grantee's
obligations pursuant to this Agreement.
11. STANDARD PROVISIONS
11.1. Recitals. City and Grantee acknowledge that the above Recitals are true and
correct and are hereby incorporated by reference into this Agreement.
Newport Harbor High School Sailors Surf Club 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. 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.
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.
Newport Harbor High School Sailors Surf Club 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: )I /)3))q
By: l
Aaron C. Harp
City Attorney
ATTEST:
Date: /9,'7' r
By:
Leilani I. Brown
City Clerk
Attachment
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P ;�o
Exhibit A: Grant Proposal
CITY OF NEWPORT BEACH,
A California municipal corporation
Date: 12 1 S I-t�
By:
Dave Kiff
City Manager
GRANTEE: Newport Harbor High
School Sailors Surf Club, a California
nonprofit corp rat' n
Date: l'2 �� �l
By:
Sandy Schwarzenbach
President
Date:
By: d&�� AW
Alan Flores
Treasurer
[END OF SIGNATURES]
Newport Harbor High School Sailors Surf Club Page 7
Exhibit A
Locey, Mary
From:
form engine @fs23.formsite.com
Sent:
Friday, March 28, 2014 11:12 AM
To:
Locey, Mary
Subject:
Special Event — Newport Harbor High -Surf Team #7946232
Special Event — Application for Financial Support
Reference #: 7946232
Status: Complete
Date: 2014 -03 -28 11:11:55
User: 209.232.151.49 (IE 10 - Windows)
Referrer. httos://f.s23.fomsite.com/re.s/forniLo�inRetum
Login Account (optional)
Users / Returning Users CLICK HERE to setup or return to your account for this form. Creating an
Snt enables you to return to this form and your submitted results. An account will also enable y iu 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 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 communit) /public.
5. 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 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, 2014 and June 30, 2015.
* Name of Applicant Organization:
Newport Harbor High School Surf Team
Applicant Representative Contact Information
* First Name
Matthew
* Last Name
Bums
* Full Address
600 Irvine Ave Newport Beach, Ca 92663
* Phone Number
949 -515 -6344
* Email Address
mburns@nmusd.us
* Type of Entity
FICorporation
QLLC
LLP
Sole Proprietor
X Other (High School) L -1
Li
Authorized Agents for Entity (signing authority for entering into contracts):
* First Name
Matthew
* Last Name
Burns
* Title
Head Coach
* First Name
Matthew
* Last Name
Bums
* Title
Head Coach
* Entity Address (if different from applicant):
600 Irvine Ave Newport Beach, Ca 92663
* Name of Event:
16th Annual Newport Classic Surf Contest
* Event Date(s):
April 18th and 19th 2015
* Is this an annual event?
2
Ryes
❑ no
* Event location/venue:
54th Street Newport Beach
* Type of event:
® Art/Culture
❑X Sports
nCommercial
FI Social
Community
Special Interest
0 Other
* 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):
N/A
* Is there a fee to enter the event? If yes, what is the amount of the fee?
Each surf contestant pays a $30 entry fee.
* Describe what, if any, portion of the event is FREE to the public.
Spectators are all free.
* Brief Description of Event (150 -word maximum):
This is a Local surf contest that has ran for 15 years. Anyone can sign up for it. There are multiple divisions from elementary school all the way up to
40+ year old adults. We receive multiple donations for Volcom, Surfside, Amette, OAM, and local eateries all of which are raffled off. ALL
proceeds go to the Newport Harbor High School Surf team. This event is our #1 fundraiser for the year. There is no commercial aspect of this
contest. This is a great 2 days of surfing and the community really rallies around this event.
* Anticipated Event Attendance (indicate participants vs. spectators, if applicable):
participants--130 -140
spectators= 150 -300 each day depending on the weather.
total2day event--560-840
* Summarize applicant's prior event experience (100 -word maximum):
Year in and year out this has been a great event for the community. All ages participate which makes it really fun and we raffle off so much donated
product that virtually everyone walks with a quality raffle prize. Surfers keep coming back and we have some excellent competition from the locals
in the event. All of which benefits the NH Surf team program.
* 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):
We do not hold any other events except for this one.
Financial Support Request
* Amount of cash requested (do not request fee waivers or in -kind donations):
$901
* Briefly describe how the requested funds be used.
Since this is a fundraiser for the High school team we are asking for the amount of the permit fee of $901. All funds will go towards the permit.
* 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
O 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?
O Yes
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?
Q Yes
Q No
* If you answered yes above, please list the entities or groups and the amount of financial support requested from each:
NIA
Attach event budget (2 -page maximum)
NHVb1T6t Newport Classic Budget for Citv permit 2014 -15 xlsx
4
Newport Classic Budget
Expenses
Permit
Insurance
trophies
Ralphs
gatorade, food, ice, etc
Home Depot
generator
misc - tape, batteries, zip ties
Judges
Surf wax
decorations
Flags
Posters
Coff ee
security
Total
Revenue cost
901 Contestant entries 30
1100 raffle
538.18 bag raffle 3
200 Grand raffle 10
125
50
300
20
40
200
25
75
125
3699.18
Silent Auction
Expenses
Revenue
Total Net
Total
# of
130 3900
600 1800
200 2000
3699.18
9200
5500.82
1500
9200