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Home My WebLink About25A - AGMT - DONATION FAMILY DAYREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 6, 2016 TITLE: DONATION AGREEMENT WITH MAGIC INC. ACADEMY OF THE ARTS TO SUPPORT A FAMILY DAY COMMUNITY BLOCK FESTIVAL (STRATEGIC PLAN NO. 5,4) <---Q e CITY MANAG d RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: Uffloylo 100600 ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2n' Reading ❑ Implementing Resolution ❑ Set Public Hearing For__ CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with Magic Inc. Academy of the Arts for a one -time donation amount of $500, subject to non - substantive changes approved by the City Manager and the City Attorney. DISCUSSION On August 4, 2015, City Council adopted Resolution 2015 -042, establishing a City Special Event Sponsorship Policy and Guidelines for Disbursement of Discretionary Funds. The resolution and policy outline the eligibility criteria for neighborhood associations and eligible non - profit entities for consideration of City Council sponsorship. In accordance with this policy, each Councilmember is allowed to appropriate up to $10,000 per fiscal year to support eligible organizations, including neighborhood associations and non - profit organizations. Eligible organizations that are not tax exempt under section 501(c)3 of the Internal Revenue Code are eligible for in -kind funding for City Services. Councilmember Reyna recommends appropriating $500 to Magic Inc. Academy of the Arts to support their 7t" Santa Ana's Family Day Community Block Festival event that will be held on Saturday, September 24, 2016, in response to their donation request (Exhibit 1). Upon approval of this item, a donation agreement (Exhibit 2) will be executed. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #4 (support neighborhood vitality and livability). 25A -1 Donation Agreement with Magic Inc. Academy of the Arts September 6, 2016 Page 2 FISCAL IMPACT Funds to support the City Council Sponsorship Policy are available in the Fiscal Year 2016 -17 General Non - Departmental account (01105015- 62300). The $500 will be spent from Councilmember Reyna's appropriated amount for FY 2016 -17. APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency Exhibits: 1. Donation Request Form 2. Donation Agreement 25A -2 ,# City of Santa Ana Donation Request City Manager's Office - M-31 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 (714) 647.5200 Name: Magic Inc. Academy of the Arts Tax- Exempt Status: Is your organization a non -profit or public tax -exempt organization as defined under Section 601(c)(3) of the internal Revenue Code? If No, you will only qualify for a credit for City- related costs for your requost (i.e. permit fees, staff time, rental rates for facilities or equipment, etc.). Costs for City services very and if approved, credit may or may not cover full cost of requested City services. Select One: 21 yes ❑ No If Yes, Tax ID #: 81- 2098571 T ;City Services Credit $ Date Needed: Mayor /Councilmember. Reyna Amount Requested: '.Direct Payment Amount Event Date: 9 -24 ^16 :Event Time: Requested: $500 10 am - 6 pm Event t.ocatlow 1400 block of West 5th Street Santa Ana CA 92703 Address, City, State, Zip Provide neighborhood youth with a day of fun, resource info and community unity through arts & Description of crafts, face painting, carnival games, pony rides and music for all ages. Event sponsored by Event I Purpose: Magic Inc. Academy of the Arts, Area neighborhood associations will be invited to participate. A day of unity for local families Community Benefit: ApplicanISig r : f,�J�j Date: 7 -1 -16 Mail: City Manager's Office - M31 Email: donationrequest @santa- ana.org 20 Civic Center Plaza Fax: (714) 647 -6954 P.O. Box 1988 Santa Ana, CA 92702 6.?n�iic,n PecauvrP #' ,cc.. i,.r, .,E ?,b;f— 4"s. xNi AAe611ryy�J4E <r. iieAbifiiey &FC; r �.'? i rSCY Ann a 7 Arre„rei: EXHIBIT 1 rt Mars; r 7 r 2hare stns Revised 1 111 612 01 5 25A -4 CITY OF SANTA ANA DONATION AGREEMENT WITH MAGIC INC. ACADEMY OF THE ARTS 1. PARTIES AND DATE This Donation Agreement ( "Agreement ") is entered into on SEPTEMBER 6, 2016 by and between the City of Santa Ana, a municipal corporation ( "City ") and MAGIC INC. ACADEMY OF THE ARTS, a California 501(c)3 NON- PROFIT ORGANIZATION ( "Recipient "). City and Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS 2.1 Community Benefit, The City wishes to provide Recipient with funding to assist Recipient in HOSTING A FAMILY DAY COMMUNITY BLOCI{ FESTIVAL ( "Community Benefit "). The Parties wish to enter into this Agreement to establish the terms and conditions under which the City will provide funding, 2.2 Public Purpose. The City, by recommendation of COUNCILMEMBER ROMAN REYNA, believes there is a public purpose in supporting the Community Benefit because it will PROMOTE ARTS ADVOCACY AND RAISE ACADEMIC EXPECTATION THROUGH YOUTH EMPOWERMENT TO ACHIEVE LIFELONG SUCCESS THROUGH ENCOURAGING AND PROMOTING THE CREATION, APPRECIATION, AND PARTICIPATION OF THE' ARTS. The foregoing is a general description of the public purpose, and is not necessarily the only public purpose to be gained from the Community Benefit, 3. TERNS AND CONDITIONS 3.1 Use of Funds. The City has chosen to provide Recipient with a one -time payment of FIVE HUNDRED DOLLARS ($500) for an event that will be held on Saturday, September 24, 2016, because the City has determined that there is a public purpose to be served in supporting the Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use the funds only for the purpose described and subject to the terms and conditions provided for in this Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with the terns of this Agreement, City shall have the right to terminate this Agreement and demand the return of the funds pursuant to Section 3.2 below. 3,2 Term; Termination of Agreement. This Agreement shall take effect on the date first above written and remain in effect through Recipient's full expenditure of the funds. The City has the right to terminate this Agreement upon one day's notice, with or without cause. Should the City terminate this Agreement, it shall also have the right to demand the immediate return of all fiends provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10 %) per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall survive any expiration or tennination of this Agreement. EXHIBIT 2 25A -5 CITY OF SANTA ANA (DONATION AGREFMIFNT Page 2 of 3 3.3 Waivers, Insurance or Other Obligations. For purposes of the City's protection, if the City determines that the funds will be used for a purpose which may cause a significant risk of injury, the City may, in its sole discretion, require Recipient to provide certain insurance and participant waiver /release protections. This right shall be on -going and may be implemented by the City at any time, and all insurance and waiver /release forms shall be provided on forms, in amounts and with provisions acceptable to City. 3.4 No Oversight by City. Nothing in this Agreement shall be implied or interpreted as City establishing or providing oversight, control or approval of the Community Benefit or any activities conducted by the Recipient. 3.5 Indemnification. Recipient understands, acknowledges and agrees that Recipient shall assume all risks associated with the Community Benefit, including, but not limited to, the possibility of death or serious tramna or injury. To this end, therefore, Recipient shall defend, indemnify and hold City and its officials, officers, employees, agents and volunteers free and harmless from and against any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any and all acts, omissions, willful misconduct or other activities of the Recipient or its officials, officers, employees, agents, guests, participants attendees, and contractors, including the performance of the Community Benefit or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. The only exception to the Recipient's obligations hereunder shall be for claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries caused by the sole negligence, sole willful misconduct or sole active negligence of the City. Recipient shall defend, at Recipient's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every land that may be brought or instituted against the City, its officials, officers, employees, agents, or vohmteers. Recipient shall pay and satisfy any judgment, award or decree that may be rendered against the City or its officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding. Recipient shall reimburse City and its officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of Urem in connection therewith or in enforcing the indemnity herein provided. Recipient's obligation to indemnify shall not be restricted or limited by insurance proceeds, if any, received by the City, its officials, officers, employers, agents or volunteers, The indemnification provisions of this Agreement shall survive any expiration or termination of this Agreement. 3.6 Entire Contract/Modification. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. The teens and conditions of this Agreement may be altered, modified or amended only by written agreement signed by both Parties. 3.7 Authority to Enter Agreement. The person executing below on behalf of Recipient represents and warrants that the Recipient has all requisite power and authority to conduct its business and to execute, deliver and perform this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement bind each respective Party. EXHIBIT 2 25A -6 CITY OF SANTA ANA DONATION AGREEMENT Page 3 of 3 RECOMMENDED FOR APPROVAL Robert C. Cortez Special Assistant to the City Manager City Manager's Office CITY OF SANTA ANA By: David Cavazos City Manager Attest: By: Maria D. Huizar Clerk of the Council Approved as to Form: By: /VV. J6Xn M. Funk Assistant City Attorney MAGIC INC. ACADEMY OF THE ARTS a 501(c)3 NON - PROFIT ORGANIZATION By: Signature Name Title EXHIBIT 2 25A -7 25A -8