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HomeMy WebLinkAbout04 - Acceptance of Grant Funds from the California Department of Alcoholic Beverage ControlQ SEW Pp�T CITY OF �m z NEWPORT BEACH c�<,FORN'P City Council Staff Report July 9, 2019 Agenda Item No. 4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Jon Lewis, Chief of Police - 949-644-3701, jlewis@nbpd.org PREPARED BY: Jay Short, Deputy Chief, jshort@nbpd.org PHONE: 949-644-3750 TITLE: Resolution No. 2019-66: Acceptance of Grant Funds from the California Department of Alcoholic Beverage Control ABSTRACT - The Police Department seeks to gain City Council approval to accept the California Department of Alcoholic Beverage Control (ABC) FY 2019-20 Alcohol Policing Partnership Program (APP) grant award in the amount of $25,000. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve the grant contract and accept the California Department of Alcoholic Beverage Control (ABC) 2019-20 Alcohol Policing Partnership Program (APP) grant award in the amount of $25,000, and authorize the Chief of Police to execute the agreement; c) Approve Budget Amendment No. 20-001 CC to increase revenue estimates by $25,000 in the ABC grant account, No. 01035352-431472-G2002, and to increase expenditure appropriations by the same amount in the Detective division; and d) Adopt Resolution No. 2019-66, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Acceptance of the California Department of Alcoholic Beverage Control FY2019-20Alcohol Policing Partnership GrantAward and Authorizing the Chief of Police to Act as "Authorized Agent" to Execute on Behalf of the City Any Documents and Take Any Action Necessary to Secure Payment and Implementation of the Grant to Supplement the Police Department's Alcohol Education and Enforcement Efforts. 4-1 Resolution No. 2019-66: Acceptance of Grant Funds from the California Department of Alcoholic Beverage Control July 9, 2019 Page 2 FUNDING REQUIREMENTS: There is no impact on the General Fund. If approved, the attached budget amendment increases the ABC APP grant revenue estimates by $25,000 and increases expenditure appropriations by the same amount in the account and object codes listed below: ACCOUNT OBJECT AMOUNT 01035355-713002-G2002 Overtime: Safety $22,500 01035355-861001-G2002 Travel and Meetings $2,500 Total FY 2019-20 ABC APP Grant $25,000 DISCUSSION: Background: In 1995, the California Department of Alcoholic Beverage Control (ABC) began offering grant assistance to law enforcement agencies in order to increase the level of alcoholic beverage law enforcement by working in partnership with cities and counties. Communities with a high concentration of alcohol outlets experience a greater number of alcohol-related problems. ABC's mission for the grant program is to work with these law enforcement agencies to develop an effective, comprehensive and strategic approach to eliminating the crime and public nuisance problems associated with problem alcoholic beverage outlets and then institutionalize those approaches within the local police agency. Analysis: As of March 19, 2019, there are 360 active retail ABC licenses in the City of Newport Beach, an average of one ABC license for every 237 residents. The Balboa Peninsula is home to 129 licenses, a ratio of one license per 77 residents. This high concentration of alcohol licenses correlates with arrest statistics. In 2018, the Newport Beach Police Department made a total of 3,455 arrests. Of those, 351 arrests were for driving under the influence (DUI) and 504 were for drunkenness and/or other alcohol-related violations. That amounts to over 24% of the year's total arrests being attributed directly to alcohol. The Balboa Peninsula represents only 13% of our overall city population and only 6% of the total land area, but 32% of all arrests are made in this area. The most impacted area of the Balboa Peninsula is located within Police Reporting District 15, which stretches geographically from 20'" Street to 37t' Street and includes the Newport Pier area. Alcohol-related offenses such as DUI, public intoxication, and liquor law violations make up 39% of arrests in this reporting district. 4-2 Resolution No. 2019-66: Acceptance of Grant Funds from the California Department of Alcoholic Beverage Control July 9, 2019 Page 3 The Police Department has placed considerable focus on community outreach in order to maintain open lines of communication with owners and operators of the local retail alcohol establishments. The APP grant award will allow the Police Department to work with retail alcohol establishments on issues such as over -service, underage drinking, and ABC condition violations. The Police Department will utilize the following proven ABC enforcements strategies: • IMPACT (Informed Merchants Preventing Alcohol -Related Crime Tendencies) Inspections - Inspections of ABC licensed premises for compliance with State and local laws, primarily focused on licensee education • Minor Decoy Operations - A minor decoy, under the direct supervision of law enforcement officers, attempts to purchase alcoholic beverages from licensed premises • Shoulder Tap Operations - A minor decoy, under the direct supervision of law enforcement officers, solicits adults outside ABC licensed stores to buy the minor decoy alcoholic beverages • Undercover Operations - Plain clothes investigators act as bar and restaurant patrons in order to investigate violations of local and state laws • Saturation Patrols - Additional patrols by uniformed officers, a strategy effectively used on the Balboa Peninsula during the busy summer months and holidays • Licensee Education on Alcohol and Drugs (LEAD) training - Classes conducted by ABC instructors which educate employees of local bars and restaurants on responsible beverage service 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). ATTACHMENTS: Attachment A —Grant Award Letter Attachment B — Contract from the Department of Alcoholic Beverage Control Attachment C — Budget Amendment Attachment D — Resolution No. 2019-66 4-3 ATTACHMENT A STATE OE-CALIFORNLA — BUSI_NESS—C911SUMER.SERVICESAND-iOUSING_AGENCY . Gavin Newsom: Golemor DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 (916) 419-2500 Fax (916) 419-2599 May 20, 2019 Chief Jon T. Lewis Newport Beach Police Department 870 Santa Barbara Drive Newport Beach, CA 92660 Dear Chief Lewis: Congratulations! Your agency has been selected by the Department of Alcoholic Beverage Control to receive funding for your 2019/2020 Alcohol Policing Partnership grant proposal in the amount of $25,000. We look forward to working with your department to meet the goals and objectives in your proposal. A grant contract will be forthcoming in the next couple of weeks which requires a resolution from your agency's governing body. A sample resolution was included in the Request for Proposal packet. Due to the fact that these resolutions typically have to be put on your governing body's calendar, we ask that you do this as soon as possible. We are hosting a two and a half' -day training conference beginning at 8:30 A.M. on July 9, 2019 and ending at approximately 12:00 P.M on July 11, 2019. This conference offers valuable trainin- in alcohol enforcement and serves as an excellent opportunity for the representatives from your agency to meet and share information with other law enforcement personnel across the State. The conference this year is being held at the Embassy Suites Sacramento Riverf •ont Promenacle located at 100 Capitol Mall, Sacramento. CA 95814. The conference can accommodate up to two attendees from each agency. It is recommended that your Project Director and an officer/deputy assigned to the grant program attend. There is a `325.00 registration fee per person to attend the conference. This 1-ee is reimbursable through the grant. In order to expedite registration, attendees are encouraged to utilize a pre -registration session in the hotel lobby on Monday, July 8. 2019 from 4:00 P.M to 5:00 P.M. Registration will also be open on July 9, 2019 from 7:30 A.M. to 8:30 A.M. A block of rooms at a special conference rate 01'$199.00 plus tax has been reserved for grant agency participants.I PLEASE NOTE THAT ATTENDEES MUST MAKE Based un State reclulations we are unable to reimburse those agencies that are within a 50 mile radius from the Embassy Suites by I lilton Sacramento Riverfront Promenade. The distance is based on the a. -envy's physical headquarters address. Agency(s) that fall in this category are: Lodi Police Dept, Rancho Cordova Police Dept, Sacramento Police Dept, Stockton Police Dept and Yuba Counth Sheriff's office. Travel related reimbursable costs for the aforementioned agencies will be limited to the registration fee onl�. May 20, 2019 Page 2 - RESERVATIONS RESERVATIONS BY THE HOTEL'S DEADLINE OF JUNE 17, 2019 to guarantee the special room rate and availability. Space at the hotel is limited and late registrants may be referred to nearby hotels. Participants must contact the Embassy Suites Hotel directly to make reservations. Below are three options: 1. Your web page address is: littps://embassysuites.iiiltoti.com/en/es/croups/personalized/S/SACESES- ABC-2019070&/intlt.\.ilitrrnl'!W'I'.mc id=POG 2. Go to www.sacramento.embassysuites.com and make a reservation using the group/convention code: ABC. Call (916) 326-5000 and ask for the ABC - Alcohol Policing Partnership (APP) Training Conference discount rate. Due to the short time frame for registering at the hotel, your prompt attention is appreciated. The special room rate will only be available until .lune 17, 2019 or until the group block is sold out, whichever comes first. We have also enclosed a conference registration form to be completed and returned within the same time frame. If you have any questions, please call grant coordinator Suzanne Pascual at (916) 419-2572. Sincerely, acob Appelsmith Director Enclosure Cc: Sergeant Randall Parker, Project Director G�7 Alcoholic Beverage Control Alcohol Policing Partnership Training Conference July 09 -11, 2019 Registration Form Yes, I will attend the 2019 Alcohol Policing Partnership Training Conference held at the location below. Location: Embassy Suites by Hilton Sacramento Riverfront Promendade 100 Capitol Mall, Sacramento CA 95834 Hotel Main Line 916-326-5000 Dates/Times: Monday, July 08 - PreRegistration ...................... 4:00 pm - 5:00 pm Tuesday, July 09 - Registration ......................... 7:30 am - 8:30 am Tuesday, July 09 - Day 1 Class ........................ 8:30 am - 5:00 pm Wednesday, July 10 - Day 2 Class ..................... 8:30 am - 5:00 pm Thursday, July 11 - Day 3 Class ........................ 8:30 am - 12:00 pm (Times may vary slightly due to Agenda classes.) AGENCY NAME Name 1 Address Daytime Phone Email Address Name 2 Address Daytime Phone Email Address Title City/Zip Cell Fax Title City/Zip Cell Fax Instructions: 1. Print/type all information clearly as name and agency will be used for identification badges. 2. Two sworn attendees allowed. We recommend Project Director & Officer assigned to awarded agency. 3. Send Registration Form as soon as possible to Grant Coordinator with or without payment so attendance is placed on conference roster. If attendant(s) has not been selected, enter Officer 1 & Officer 2 and send to secure. 4. Mail/Email/Fax Registration Form attention to Grant Coordinator (see below). 5. Payment must be received by June 17. Contact Grant Coordinator if payment will be delayed. 6. Checks only are accepted for payment. Credit Card or Purchase Orders are not accepted. 7. Conference registration fee is 6325 per person. 8. Make checks payable to -Alcoholic Beverage Control. 9. Contact hotel separately for room reservations. This Registration Form does not secure hotel arrangements. Department of Alcoholic Beverage Control Attention: Suzanne Pascual, Grant Coordinator 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 Direct (916) 419-2572; Fax (916) 419-2599 1/2o19 suzanne.pascual a0abc.ca.-gov ATTACHMENT B STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT AGREEMENT NUMBER PURCHASING AUTHORITY NUMBER (If Applicable) STD 213 (Rev. 03/2019) 19G-LA26 1. This Agreement is entered into between the Contracting Agency and the Contractor named below: CONTRACTING AGENCY NAME DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL CONTRACTOR NAME City of Newport Beach through the Newport Beach Police Department 2. The term of this Agreement is, START DATE July 1, 2019 THROUGH END DATE June 30, 2020 3. The maximum amount of this Agreement is: $ 25,000 4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part of the Agreement. EXHIBJTS I TITLE PAGES ExhibitA I Scope of Work 4 Exhibit B I Budget Detail and Payment Provisions 1 J Exhibit C * I General Terms and Conditions GTC 04/2017 1 04/2017 Exhibit D I Special Terms and Conditions 1 Items shown with an asterisk (*), are hereby incorporated by reference and made part of this agreement as if attached hereto. These documents can be viewed at h flp�(lwwwr.das.ca.gov/9L5/Resources IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO. CONTRACTOR CONTRACTOR NAME (if other than an individual, state whether a corporation, partnership, etc.) City of Newport Beach through the Newport Beach Police Department CONTRACTOR BUSINESS ADDRESS 870 Santa Barbara Drive PRINTED NAME OF PERSON SIGNING Jon T. Lewis CITY Newport Beach TITLE Chief CONTRACTOR AWYORVE&SIGNAT11K? I DATE SIGNED STATE OF CALIFORNIA CONTRACTING AGENCY NAME Department of Alcoholic Beverage Control CONTRACTING AGENCY ADDRESS 3927 Lennane Drive, Suite 100 PRINTED NAME OF PERSON SIGNING Pattye Nelson STATS ZIP CA 92660 CITY STATE ZIP Sacramento CA 95834 TITLE Chief, Business Management Branch CONTRACTING AGENCY AUTHORIZED SIGNATURE I DATE SIGNED CALIFORNIA DEPARTMENT OF GENERAL SERVICES APPROVAL EXEMPTION (If Applicable) 4-7 Paqe 1 of 1 -11 Umm. Exhibit A The Newport Beach Police Department services the City of Newport Beach, which is considered the coastal center of Orange County. The city covers an area of approximately 24 square miles of land and is comprised of distinct residential and commercial areas. These areas include: The John Wayne Airport commercial district, the Balboa Peninsula, Balboa Village, Mariner's Mile, Balboa Island, Corona del Mar, Fashion Island, and Newport Coast. Combined, these areas make Newport Beach one of the most attractive resort destinations on the West Coast. In addition to the City's full-time resident population of approximately 85,186, summertime crowds can easily reach in excess of 100,000. It is common for the city's prominent eating and drinking establishments to be a focal point for this additional summertime population. The Newport Beach Police Department provides the city with a full service law enforcement agency of 147 authorized sworn officers (annual budget document attached). These officers act under the direction of the Chief of Police, Jon T. Lewis. The police department is divided into four divisions: Patrol, Traffic, Support Services, and the Detective Division. ABC oversight is the responsibility of the Special Investigations Unit within the Detective Division. This unit is comprised of (1) Detective Sergeant, (2) Detectives, and (1) Investigator. The position of the Police Civilian Investigator was added in 2015 specifically to investigate alcohol related problems due to the high concentration of alcohol licenses in our city. The purpose of this proposal is to request $25,000 in grant assistance from the Department of Alcoholic Beverage Control, for the project period of July 1, 2019 — June 30, 2020. Our project goals are as follows: (1) conduct visible and impactful enforcement and education in our retail alcohol establishments, (2) train our Department's patrol staff on Alcohol laws, and (3) target underage drinking and illegal purchasing of alcoholic beverages by minors utilizing trusted strategies of the Department of the Alcoholic Beverage Control. As of March 19, 2019, there are 360 active retail ABC licenses in the City of Newport Beach. Of those, 294 are on -sale and 66 are off -sale. These numbers represent an average of 1 ABC license for every 237 residents. Newport Beach's reputation as a premier destination resort area contributes to an over concentration of retail alcohol establishments. The city's alcohol establishments are patronized by not only our largely affluent, full- time resident population, but college students, vacationers, and day visitors as well. Although the city's alcohol establishments certainly enhance business and tourism, it is fair to say that they also create challenges for public safety and our residents' quality of life. Problem Statement: In 2017, the Newport Beach Police Department made a total of 3,315 arrests. Of those, 351 arrests were for driving under the influence and 496 were for drunkenness and/or other alcohol-related violations. That amounts to over 26% of the year's total arrests being attributed directly to alcohol. Within the City of Newport Beach, the NBPD has identified the Balboa Peninsula as a problem area in terms of alcohol-related issues. The Balboa Peninsula represents only 13% of our overall city population and only 6% of the total land area, but 31% of all arrests are made in this area. Exhibit A The Balboa Peninsula is found to have undue concentration in regards to crime and alcohol licenses. The Police Department divides the city into areas referred to as Reporting Districts (RD) that allow the Police Department to create statistical data as well as better communicate officer locations while policing_ The most impacted area of the peninsula is located within Reporting District 15, which stretches geographically from 37th Street to 20th Street and includes the Newport Pier area. The RD's Crime Count reported to ABC annually is 670, which ranks 1st in the city at 401% over the city-wide crime count average of 134. The nexus to crime involving alcohol is high in this area as well. DUI, Public Intoxication, and liquor law violations alone make up 39% of arrests in this reporting district. This area is also represented within Census Tract 635.00. This census tract has the highest undue concentration of alcohol licenses compared to all other areas in our city. This census tract has an approximate population of 5,726 residents with 75 active retail alcohol licenses. This indicates a per capita ratio of 1 license per every 76 residents, exceeding the Orange County benchmark of I license per 467 residents. Being a beach community with a lively pier -side commercial area, the Newport Beach Peninsula naturally attracts a younger crowd. Our most popular restaurants and bars such as Sharkeez, The Stag Bar, Malarky's, Cassidy's and the Blue Beet market themselves to attract a twenty -something demographic. Also unique to the area is the number of nearby colleges and universities. UC Irvine, Vanguard University, Concordia University Irvine, Orange Coast College, and Coastline Community College are all within miles of the Balboa Peninsula. Many students who are of or near the legal drinking age choose to live and recreate in Newport Beach and therefore, underage drinking is a significant concern in this area. The California Office of Traffic Safety (OTS) annually provides collision ranking results of all cities. In 2016, the City of Newport Beach was grouped into a category of other cities with 50,000 to 100,000 residents. According to their numbers. Newport Beach ranked 55 out of 104 cities in terms of number of alcohol -involved collisions. However, Newport Beach ranked 3`d in collisions where the driver was under the age of 21. That is a significant statistical jump. In 2018, Newport Beach Police Officers cited 28 people under 21 years of age for being a minor in possession of alcohol, and another 15 for being in possession of false identification. Conducting more frequent operations focused solely on combatting underage drinking and alcohol problems would undoubtedly reveal many more citations and potential life-saving educational opportunities. Another unique problem related to the specific location is the growing homeless population. It is common for people under 21 years of age to ask adult individuals to purchase alcohol for them from the various off -sale establishments. One of our specific goals is to educate local retail establishments on this growing issue and conduct shoulder tap operations that are followed up with press releases. Past grant awards were a tremendous asset that allowed us the opportunity to put an emphasis on ABC enforcement. Since our most recent grant in FY 2016-2017, we have continued enforcement efforts and conduct Shoulder Tap Operatiorrs, Minor Decoy Operations, Trap Door Operations, and undercover operations annually. Recent Mirror Decoy Operations resulted in 4 establishments receiving lines in lieu of suspension from ABC. Our goal moving forward is to build upon the knowledge we've gained thus far, and continue to put our resources towards underage drinking as well as other alcohol-related problems. Regular enforcement and a strong relationship with the DeparLnienl of Alcohol Beverage Control are the most important components to maintaining compliance among the local retail alcohol establishments and creating change. Exhibit A The Special Investigations Unit enjoys a positive working relationship with the Orange County District Attorney's Office. The District Attorney has filed every citation we have submitted and will continue to prosecute any ABC related cases we submit in the future. Proiect Description: The proposed project aims to utilize ABC enforcement strategies to address the city's alcohol-related issues as they pertain to over service, underage drinking, and ABC condition violations. It is the intent of the Police Department to have Special Investigations Unit staff work closely with an assigned Grant Assistant Program (GAP) Investigator to coordinate and fulfill the following objectives: Conduct four (4) Trap Door operations to target minors who are either attempting to purchase alcohol or trying to enter a bar or nightclub with a false ID. During the operation, the officers will work directly with employees of ABC licensed establishments to detect and then cite the person in possession of the false ID. * Conduct three (3) Minor Decoy operations to address problems related to alcohol service to minors. Conduct two (2) Shoulder Tap operations to address problems with adults furnishing alcoholic beverages to minors. • Issue at least four (4) press releases outlining the Grant award and/or operation result details aimed at educated the public. Provide roll call training to all patrol officers on ABC education, prevention, and enforcement measures, so that more officers become educated and will continue to focus on alcohol concerns after the grant period has been completed. • Conduct four (4) undercover operations, which will target establishments where reports of ABC related conditional use permit violations and narcotic related activity have contributed to police -related activity and increased calls for service. The operations will also focus on any other problems that may be the result of a current trend. i Utilize uniformed patrol personnel to conduct at least five (5) saturation patrols within the Balboa Peninsula area. These patrols will provide a high visibility presence as they conduct "bar checks" and build relationships with restaurant and bar staff in the community. The patrols will take place during the busy summer months and holidays, and each will consist of two (2) uniformed officers who will be trained on ABC laws and enforcement procedures. # Organize at least two (2) classes focusing on responsible beverage service, in which the owners/operators, managers, and employees of local ABC licensed establishments will be provided with free training on alcohol responsibility and the law. * Conduct at least fifty (50) IMPACT (Informed Merchants Preventing Alcohol -Related Crime Tendencies) inspections. 4-10 Exhibit A Project Personnel: The primary responsibility for the Grant will rest upon the Special Investigations Unit, specifically Sergeant Randall Parker, Detective Dave Mock, Detective Damian Shaddow and Investigator Wendy Joe. These employees will be directly responsible for the grant's success and fulfilling the goals and objectives of the 2019/2020 grant. Detective Mock and Investigator Joe were also responsible for the successful completion of the grant awarded to Newport Beach Police Department in FY 2016/2017, which received recognition for "Significant Achievement Under the ABC Grant Assistance Program". Sergeant Randall Parker been a police officer for 18 years with the Newport Beach Police Department. He has worked drug or alcohol enforcement for 12 of those 18 years. As a sergeant, he supervises the Special Investigations Unit, which investigates narcotics crimes, alcohol-related issues, prostitution, human trafficking, and intelligence concerns. Detective David Mock has been a police officer for 22 years, the last six with the Newport Beach Police Department. He has worked as a Patrol Officer, Property Crimes Investigator, Gang Investigator, and is now a Detective within the Special Investigations Unit. Detective Mock has led operations involving alcohol since 2015. Detective Damian Shaddow holds a Bachelor's Degree. He has been a police officer for ten years, the last five with the Newport Beach Police Department. He has worked as a Patrol Officer and now as a Detective in the Special Investigations Unit. In 2018, Detective Shaddow was awarded "Street Level Case of the Year" by the California Narcotics Officers Association. Investigator Wendy Joe has been employed with the Newport Beach Police Department for 18 years and is currently assigned to the Special Investigations Unit. Investigator Joe actively participates in ABC field operations and also managed the FY 2016/2017 grant administratively. She works directly with City Planning and Alcoholic Beverage Control Licensing to ensure establishments are conditioned fairly and effectively. She routinely speaks at Planning Commission meetings on behalf of the Newport Beach Police Department. The grant will be used to dedicate two uniformed officers to conduct saturation patrols focusing on bars and restaurants. The saturation patrol objectives will be directed by the Special Investigations Unit, who will also provide the uniformed officers with the necessary training on ABC laws and procedures. The Newport Beach Police Department's Explorer Unit regularly provides volunteer personnel under 20 years of age who will participate in decoy operations. Even though the primary responsibility of the grant objectives would belong to the Special Investigations Unit, the Newport Beach Police Department is prepared to allocate additional personnel and resources necessary to fulfill the grant objectives, and build upon its groundwork. It is our ultimate goal to continue to proactively deal with the city's alcohol-related issues. 4-11 BUDGET DETAIL Exhibit B BUDGET CATEGORY AND LINE -ITEM DETAIL COST (Round budget amounts to nearest dollar) A. Personnel Services (Straight Time Salaries, Overtime, and Benefits) ......_ ....... ......... ......._ _ --- . -- - A.1 Straight Time None A.2 Overtime Overtime Estimate 300 hoursa approximately $75 per hour $22,500 A.3 Benefits None ------------------------------------------------------------------- TOTAL PERSONNEL SERVICES $22,500 B. Operating Expenses (maximum $2,500) TOTAL OPERATING EXPENSES $o C. Equipment (maximum $2,500) (Attach receipts for all equipment purchases to monthly billing invoice) TOTAL EQUIPMENT $0 D. Travel Expense/Registration Fees (maximum $2,500) (Registration fee for July 2019 APP Conference attendee is $325 each) 1. Registration for July 2019 APP Conference: 2 Attendees at $325 each $650 2. Travel, per diem, and lodging for the July APP conference $1850 TOTAL TRAVEL EXPENSE $2500 TOTAL BUDGET DETAIL COST, ALL CATEGORIES $25,000 4-12 PAYMENT PROVISION Pagel of 2 Exhibit B INVOICING AND PAYMENT: Payments of approved reimbursable costs (per Budget Detail attached) shall be in arrears and made via the State Controller's Office. Invoices shall be submitted in duplicate on a monthly basis in a format specified by the State. Failure to submit invoices and reports in the required format shall relieve the State from obligation of payment. Payments will be in arrears, within 30 days of Department acceptance of Contractor performance, pursuant to this agreement or receipt of an undisputed invoice, whichever occurs last. Nothing contained herein shall prohibit advance payments as authorized by Item 2100- 101-3036, Budget Act, Statutes of 2019. 2. Revisions to the "Scope of Work" and the "Budget Detail" may be requested by a change request letter submitted by the Contractor. If approved by the State, the revised Grant Assistance Scope of Work and/or Budget Detail supersede and replace the previous documents bearing those names. No revision can exceed allotted amount as shown on Budget Detail. The total amount of the contract must remain unchanged. Contractor agrees to refund to the State any amounts claimed for reimbursement and paid to Contractor which are later disallowed by the State after audit or inspection of records maintained by the Contractor. 4. Only the costs displayed in the "Budget Detail" are authorized for reimbursement by the State to Contractor under this agreement. Any other costs incurred by Contractor in the performance of this agreement are the sole responsibility of Contractor. 5. Title shall be reserved to the State for any State -furnished or State -financed property authorized by the State which is not fully consumed in the performance of this agreement. Contractor is responsible for the care, maintenance, repair, and protection of any such property. Inventory records shall be maintained by Contractor and submitted to the State upon request. All such property shall be returned to the State upon the expiration of this contract unless the State otherwise directs. 6. If travel is a reimbursable item, the reimbursement for necessary traveling expenses and per diem shall be at rates set in accordance with Department of Personnel Administration rates set for comparable classes of State employees. No travel outside of the State of California shall be authorized. No travel shall be authorized outside of the legal jurisdiction of Contractor without prior authorization by the State. 4-13 PAYMENT PROVISION Page 2 of 2 Exhibit B 7. Prior authorization by the State in writing is required before Contractor will be reimbursed for any purchase order or subcontract exceeding $2,500 for any articles, supplies, equipment, or services to be purchased by Contractor and claimed for reimbursement. Contractor must justify the necessity for the purchase and the reasonableness of the price or cost by submitting three competitive quotations or justifying the absence of bidding. 8. Prior approval by the State in writing is required for the location, costs, dates, agenda, instructors, instructional materials, and attendees at any reimbursable training seminar, workshop or conference, and over any reimbursable publicity or educational materials to be made available for distribution. Contractor is required to acknowledge the support of the State whenever publicizing the work under the contract in any media. 9. It is understood between the parties that this contract may have been written before ascertaining the availability of appropriation of funds, for the mutual benefit of both parties, in order to avoid program and fiscal delays that would occur if the contracts were executed after that determination was made. 10. BUDGET CONTINGENCY CLAUSE - It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations under this Agreement and Contractor shall not be obligated to perform any provisions of this Agreement. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an agreement amendment to Contractor to reflect the reduced amount. Updated 1117/1'9 4-14 Exhibit D Special Terms and Conditions I . Disputes: Any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Director, Department of Alcoholic Beverage Control, or designee, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the Contractor. The decision of the Department shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the Contractor mails or otherwise furnishes to the State a written appeal addressed to the Director, Department of Alcoholic Beverage Control. The decision of the Director of Alcoholic Beverage Control or his duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, capricious, arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this clause, the contractor shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. !'ending final decision of a dispute hereunder, Contractor shall proceed diligently with the performance of the contract and in accordance with the decision of the State. . Termination Without Cause: Either party may terminate this agreement at any time for any reason upon ten (10) days written notice. No penalty shall accrue to either party because of contract termination. 3. _Contract Validity: This contract is valid and enforceable only if adequate funds are appropriated in Item 2100-101-3036, Budget Act of 2019, for the purposes of this program. 4. Contractor Certifications: By signing this agreement, Contractor certifies compliance with the provisions of CCC 04/2017, Standard Contractor Certification Clauses. This document may be viewed at https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services- Resources-List-Folder/Standard-Contract-Language . 5. If the State determines that the grant project is not achieving its goals and objectives on schedule, funding may be reduced by the State to reflect this lower level of project activity. Updated 2/20/19 4-15 t�FW PART O� 6' z cgtiFoaN�P City of Newport Beach BUDGET AMENDMENT 2019-20 Department: Police Requestor: ❑ CITY MANAGERS APPROVAL ONLY 21 COUNCIL APPROVAL REQUIRED ATTACHMENT C BA#: 20-001 CC ONE TIME: ❑� `les ❑No Approvals' Prepared by: Walid HarOft r1 Finance Director: ate Citv Clerk: Date EXPLANATION FOR REQUEST: To increase revenue estimates and expenditure appropriations from the approval and acceptance of the California ❑from existing budget appropriations Department of Alcoholic Beverage Control (ABC) 2019-20 Alcohol Policing Partnership Program (APP) Grant. Dfrom additional estimated revenues ❑from unappropriated fund balance REVENUES Fund # Org Object Project Description Increase or Decrease $ 010 101035352 431472 G2002 POLICE SUPPORT SERVICES - ABC GRANT $25,000.00 Subtotal $25,000.00 EXPENDITURES Fund # Org Object Project Description Increase or Decrease $ 010 101035355 713002 G2002 DETECTIVES - OT SAFETY $22,500.00 010 01035355 861001 G2002 DETECTIVES - TRAVEL & MEETINGS NOC $2,500.00 Subtotal $25,000.00 FUND BALANCE Fund # Object Description Increase or Decrease $ Subtotal No Change In Fund Balance 4-16 ATTACHMENT D RESOLUTION NO. 2019- 66 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING THE ACCEPTANCE OF THE CALIFORNIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL FY 2019-20 ALCOHOL POLICING PARTNERSHIP GRANT AWARD AND AUTHORIZING THE CHIEF OF POLICE TO ACT AS "AUTHORIZED AGENT" TO EXECUTE ON BEHALF OF THE CITY ANY DOCUMENTS AND TAKE ANY ACTION NECESSARY TO SECURE PAYMENT AND IMPLEMENTATION OF THE GRANT TO SUPPLEMENT THE POLICE DEPARTMENT'S ALCOHOL EDUCATION AND ENFORCEMENT EFFORTS WHEREAS, the City of Newport Beach ("City") through its Police Department desires to accept a grant award ("Grant") in the amount of twenty-five thousand dollars ($25,000) in furtherance of ongoing alcohol education and enforcement efforts to be funded in part from funds made available through the FY 2019-2020 Alcohol Policing Partnership ("APP") grant program administered by the California Department of Alcoholic Beverage Control ("ABC"); WHEREAS, on July 9, 2019, the City Council approved the agreement ("Agreement"), a copy of which is attached hereto, containing the terms and conditions for the Grant, authorized the Chief of Police to execute the Agreement, and approved a budget amendment to account for the Grant; and WHEREAS, ABC requires that the City Council's approval of the Agreement and authorization to execute the Agreement be made by resolution. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby accept the Grant made available through the APP and administered by ABC, subject to the terms and conditions of the Agreement. Section 2: The City Council does hereby authorize the Chief of Police to act as the city's "Authorized Agent" with the authority to execute on behalf of the City the Agreement, as well as any other related documents, and take any actions as they relate to securing payment of and implementing the Grant. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 4-17 Resolution No. 2019 - Page 2 of 2 Section 4: The Grant funds received hereafter shall not be used to supplant other expenditures controlled by this body. Section 5: The Grant award is not subject to local hiring freezes. Section 6: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clauses or phrases be declared invalid or unconstitutional. Section 7: The City Council finds the adoption of this resolution 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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 8: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 9th day of July, 2019. ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY TTORNEY'S OFFI E C,L - C Aaron C. Harp City Attorney Attachment: Exhibit 1- Grant Agreement Diane B. Dixon Mayor ME STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT STD 213 (Rev. 03/2019) EXHIBIT 1 AGREEMENT NUMBER 19G-LA26 1. This Agreement is entered into between the Contracting Agency and the Contractor named below: CONTRACTING AGENCY NA M E DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL CONTRACTOR NAME City of Newport Beach through the Newport Beach Police Department 2. The term of this Agreement is: START DATE July 1, 2019 THROUGH END DATE June 30, 2020 PURCHASING AUTHORITY NUMBER (if Applicable) 3. The maximum amount of this Agreement is: $ 25,000 4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part of the Agreement. EXHIBITS TITLE PAGES Exhibit A Scope of Work 4 Exhibit B Budget Detail and Payment Provisions 3 Exhibit C" General Terms and Conditions GTC 04/2017 04/2017 Exhibit D Special Terms and Conditions 1 ,rCr113 SrrVwn Willi an uscensx I �, are nereoy rncorporareo oy rererence ana mane parr or mis agreemenras 1r atracneo nerero. These documents can be viewed athtWsllnrw-w.das.ca.aov/OLS/Resources IN WITNESS WHEREOF, THIS AGREEMENT NAS BEEN EXECUTED BY THE PARTIES HERETO. CONTRACTOR CONTRACTOR NAME (if other than an individual, state whether a co(poration, partnership, etc.) City of Newport Beach through the Newport Beach Police Department CONTRACTOR BUSINESS ADDRESS CITY STATE 870 Santa Barbara Drive Newport Beach CA JZIP 92660 PRINTED NAME OF PERSON SIGNING TITLE Jon T. Lewis Chief CONTRACTOR AUT)fORI! SIGNA>R f DATE SIGNED STATE OF CALIFORNIA CONTRACTING AGENCY NAME Department of Alcoholic Beverage Control CONTRACTING AGENCY ADDRESS CITY_] STATE ZIP 3927 Lennane Drive, Suite 100 Sacramento CA 95834 PRINTED NAME OF PERSON SIGNING TITLE Pattye Nelson Chief, Business Management Branch CONTRACTING AGENCY AUTHORIZED SIGNATURE DATE SIGNED CALIFORNIA DEPARTMENT OF GENERAL SERVICES APPROVAL (EXEMPTION (If Applicable) Paqe 1 of 1 4-19 SCOPE OF WORK Summary: Exhibit A The Newport Beach Police Department services the City of Newport Beach, which is considered the coastal center of Orange County. The city covers an area of approximately 24 square miles of land and is comprised of distinct residential and commercial areas. These areas include: The John Wayne Airport commercial district, the Balboa Peninsula, Balboa Village, Mariner's Mile, Balboa Island, Corona del Mar, Fashion Island, and Newport Coast. Combined, these areas make Newport Beach one of the most attractive resort destinations on the West Coast. In addition to the City's full-time resident population of approximately 85,186, summertime crowds can easily reach in excess of 100,000. It is common for the city's prominent eating and drinking establishments to be a focal point for this additional summertime population. The Newport Beach Police Department provides the city with a full service law enforcement agency of 147 authorized sworn officers (annual budget document attached). These officers act under the direction of the Chief of Police, Jon T. Lewis. The police department is divided into four divisions: Patrol, Traffic, Support Services, and the Detective Division. ABC oversight is the responsibility of the Special Investigations Unit within the Detective Division. This unit is comprised of (1) Detective Sergeant, (2) Detectives, and (1) Investigator. The position of the Police Civilian Investigator was added in 2015 specifically to investigate alcohol related problems due to the high concentration of alcohol licenses in our city. The purpose of this proposal is to request $25,000 in grant assistance from the Department of Alcoholic Beverage Control, for the project period of July 1, 2019 — June 30, 2020. Our project goals are as follows: (1) conduct visible and impactful enforcement and education in our retail alcohol establishments, (2) train our Department's patrol staff on Alcohol laws, and (3) target underage drinking and illegal purchasing of alcoholic beverages by minors utilizing trusted strategies of the Department of the Alcoholic Beverage Control. As of March 19, 2019, there are 360 active retail ABC licenses in the City of Newport Beach. Of those, 294 are on -sale and 66 are off -sale. These numbers represent an average of 1 ABC license for every 237 residents. Newport Beach's reputation as a premier destination resort area contributes to an over concentration of retail alcohol establishments. The city's alcohol establishments are patronized by not only our largely affluent, full- time resident population, but college students, vacationers, and day visitors as well. Although the city's alcohol establishments certainly enhance business and tourism, it is fair to say that they also create challenges for public safety and our residents' quality of life. Problem Statement: In 2017, the Newport Beach Police Department made a total of 3,315 arrests. Of those, 351 arrests were for driving under the influence and 496 were for drunkenness and/or other alcohol-related violations. That amounts to over 26% of the year's total arrests being attributed directly to alcohol. Within the City of Newport Beach, the NBPD has identified the Balboa Peninsula as a problem area in terms of alcohol-related issues. The Balboa Peninsula represents only 13% of our overall city population and only 6% of the total land area, but 31% of all arrests are made in this area. 4-20 Exhibit A The Balboa Peninsula is found to have undue concentration in regards to crime and alcohol licenses. The Police Department divides the city into areas referred to as Reporting Districts (RD) that allow the Police Department to create statistical data as well as better communicate officer locations while policing. The most impacted area of the peninsula is located within Reporting District 15, which stretches geographically from 371' Street to 201' Street and includes the Newport Pier area. The RD's Crime Count reported to ABC annually is 670, which ranks 1st in the city at 401% over the city-wide crime count average of 134. The nexus to crime involving alcohol is high in this area as well. DUI, Public Intoxication, and liquor law violations alone make up 39% of arrests in this reporting district. This area is also represented within Census Tract 635.00. This census tract has the highest undue concentration of alcohol licenses compared to all other areas in our city. This census tract has an approximate population of 5,726 residents with 75 active retail alcohol licenses. This indicates a per capita ratio of 1 license per every 76 residents, exceeding the Orange County benchmark of 1 license per 467 residents. Being a beach community with a lively pier -side commercial area, the Newport Beach Peninsula naturally attracts a younger crowd. Our most popular restaurants and bars such as Sharkeez, The Stag Bar, Malarky's, Cassidy's and the Blue Beet market themselves to attract a twenty -something demographic. Also unique to the area is the number of nearby colleges and universities. UC Irvine, Vanguard University, Concordia University Irvine, Orange Coast College, and Coastline Community College are all within miles of the Balboa Peninsula. Many students who are of or near the legal drinking age choose to live and recreate in Newport Beach and therefore, underage drinking is a significant concern in this area. The California Office of Trak Safety (OTS) annually provides collision ranking results of all cities. In 2016, the City of Newport Beach was grouped into a category of other cities with 50,000 to 1002000 residents. According to their numbers. Newport Beach ranked 55 out of 104 cities in terms of number of alcohol -involved collisions. However, Newport Beach ranked 3rd in collisions where the driver was under the age of 21. That is a significant statistical jump. In 2018, Newport Beach Police Officers cited 28 people under 21 years of age for being a minor in possession of alcohol, and another 15 for being in possession of false identification. Conducting more frequent operations focused solely on combatting underage drinking and alcohol problems would undoubtedly reveal many more citations and potential life-saving educational opportunities. Another unique problem related to the specific location is the growing homeless population. It is common for people under 21 years of age to ask adult individuals to purchase alcohol for them from the various off -sale establishments. One of our specific goals is to educate local retail establishments on this growing issue and conduct shoulder tap operations that are followed up with press releases. Past grant awards were a tremendous asset that allowed us the opportunity to put an emphasis on ABC enforcement. Since our most recent grant in FY 2016-2017, we have continued enforcement efforts and conduct Shoulder Tap Operations, Minor Decoy Operations, Trap Door Operations, and undercover operations annually. Recent Minor Decoy Operations resulted in 4 establishments receiving fines in lieu of suspension from ABC. Our goal moving forward is to build upon the knowledge we've gained thus far, and continue to put our resources towards underage drinking as well as other alcohol-related problems. Regular enforcement and a strong relationship with the Department of Alcohol Beverage Control are the most important components to maintaining compliance among the local retail alcohol establishments and creating change. 4-21 Exhibit A The Special Investigations Unit enjoys a positive working relationship with the Orange County District Attorney's Office. The District Attorney has filed every citation we have submitted and will continue to prosecute any ABC related cases we submit in the future. Proiect Description: The proposed project aims to utilize ABC enforcement strategies to address the city's alcohol-related issues as they pertain to over service, underage drinking, and ABC condition violations. It is the intent of the Police Department to have Special Investigations Unit staff work closely with an assigned Grant Assistant Program (GAP) Investigator to coordinate and fulfill the following objectives: • Conduct four (4) Trap Door operations to target minors who are either attempting to purchase alcohol or trying to enter a bar or nightclub with a false ID. During the operation, the officers will work directly with employees of ABC licensed establishments to detect and then cite the person in possession of the false ID. • Conduct three (3) Minor Decoy operations to address problems related to alcohol service to minors. • Conduct two (2) Shoulder Tap operations to address problems with adults fiunishing alcoholic beverages to minors. • Issue at least four (4) press releases outlining the Grant award and/or operation result details aimed at educated the public. • Provide roll call training to all patrol officers on ABC education, prevention, and enforcement measures, so that more officers become educated and will continue to focus on alcohol concerns after the grant period has been completed. • Conduct four (4) undercover operations, which will target establishments where reports of ABC related conditional use permit violations and narcotic related activity have contributed to police -related activity and increased calls for service. The operations will also focus on any other problems that may be the result of a current trend. • Utilize uniformed patrol personnel to conduct at least five (5) saturation patrols within the Balboa Peninsula area. These patrols will provide a high visibility presence as they conduct "bar checks" and build relationships with restaurant and bar staff in the community. The patrols will take place during the busy summer months and holidays, and each will consist of two (2) uniformed officers who will be trained on ABC laws and enforcement procedures. Organize at least two (2) classes focusing on responsible beverage service, in which the owners/operators, managers, and employees of local ABC licensed establishments will be provided with free training on alcohol responsibility and the law. • Conduct at least fifty (50) IMPACT (Informed Merchants Preventing Alcohol -Related Crime Tendencies) inspections. 4-22 Exhibit A Proiect Personnel: The primary responsibility for the Grant will rest upon the Special Investigations Unit, specifically Sergeant Randall Parker, Detective Dave Mock, Detective Damian Shaddow and Investigator Wendy Joe. These employees will be directly responsible for the grant's success and fulfilling the goals and objectives of the 2019/2020 grant. Detective Mock and Investigator Joe were also responsible for the successful completion of the grant awarded to Newport Beach Police Department in FY 2016/2017, which received recognition for "Significant Achievement Under the ABC Grant Assistance Program". Sergeant Randall Parker been a police officer for 18 years with the Newport Beach Police Department. He has worked drug or alcohol enforcement for 12 of those 18 years. As a sergeant, he supervises the Special Investigations Unit, which investigates narcotics crimes, alcohol-related issues, prostitution, human trafficking, and intelligence concerns. Detective David Mock has been a police officer for 22 years, the last six with the Newport Beach Police Department. He has worked as a Patrol Officer, Property Crimes Investigator, Gang Investigator, and is now a Detective within the Special Investigations Unit. Detective Mock has led operations involving alcohol since 2015. Detective Damian Shaddow holds a Bachelor's Degree. He has been a police officer for ten years, the last five with the Newport Beach Police Department. He has worked as a Patrol Officer and now as a Detective in the Special Investigations Unit. In 2018, Detective Shaddow was awarded "Street Level Case of the Year" by the California Narcotics Officers Association. Investigator Wendy Joe has been employed with the Newport Beach Police Department for 18 years and is currently assigned to the Special Investigations Unit. Investigator Joe actively participates in ABC field operations and also managed the FY 2016/2017 grant administratively. She works directly with City Planning and Alcoholic Beverage Control Licensing to ensure establishments are conditioned fairly and effectively. She routinely speaks at Planning Commission meetings on behalf of the Newport Beach Police Department. The grant will be used to dedicate two uniformed officers to conduct saturation patrols focusing on bars and restaurants. The saturation patrol objectives will be directed by the Special Investigations Unit, who will also provide the uniformed officers with the necessary training on ABC laws and procedures. The Newport Beach Police Department's Explorer Unit regularly provides volunteer personnel under 20 years of age who will participate in decoy operations. Even though the primary responsibility of the grant objectives would belong to the Special Investigations Unit, the Newport Beach Police Department is prepared to allocate additional personnel and resources necessary to fulfill the grant objectives, and build upon its groundwork. It is our ultimate goal to continue to proactively deal with the city's alcohol-related issues. 4-23 BUDGET DETAIL Exhibit B BUDGET CATEGORY AND LINE -ITEM DETAIL COST (Round budget amounts to nearest dollar) A. _Personnel Services (Straight Time Salaries, Overtime, and Benefits) - -- A.1 Straight Time None A.2 Overtime Overtime Estimate 300 hours @ approximately $75 per hour $22,500 A.3 Benefits None TOTAL PERSONNEL SERVICES $22,500 B. Operating Expenses (maximum $2,500) TOTAL OPERATING EXPENSES $0 C. Equipment (maximum $2,50_0) (Attach receipts for all equipment purchases to monthly billing invoice) TOTAL EQUIPMENT $0 D. Travel Expense/Registration Fees (maximum $2,500) (Registration fee for July 2019 APP Conference attendee is $325 each) 1. Registration for July 2019 APP Conference: 2 Attendees at $325 each $650 2. Travel, per diem, and lodging for the July APP conference $1850 TOTAL TRAVEL EXPENSE $2500 TOTAL BUDGET DETAIL COST, ALL CATEGORIES $25,000 4-24 PAYMENT PROVISION Page 1 of 2 Exhibit B INVOICING AND PAYMENT: Payments of approved reimbursable costs (per Budget Detail attached) shall be in arrears and made via the State ControlIer's Office. Invoices shall be submitted in duplicate on a monthly basis in a format specified by the State. Failure to submit invoices and reports in the required format shall relieve the State from obligation of payment. Payments will be in arrears, within 30 days of Department acceptance of Contractor performance, pursuant to this agreement or receipt of an undisputed invoice, whichever occurs last. Nothing contained herein shall prohibit advance payments as authorized by Item 2100- 101-3036, Budget Act, Statutes of 2019. 2. Revisions to the "Scope of Work" and the "Budget Detail" may be requested by a change request letter submitted by the Contractor. If approved by the State, the revised Grant Assistance Scope of Work and/or Budget Detail supersede and replace the previous documents bearing those names. No revision can exceed allotted amount as shown on Budget Detail. The total amount of the contract must remain unchanged. 3. Contractor agrees to refund to the State any amounts claimed for reimbursement and paid to Contractor which are later disallowed by the State after audit or inspection of records maintained by the Contractor. 4. Only the costs displayed in the "Budget Detail" are authorized for reimbursement by the State to Contractor under this agreement. Any other costs incurred by Contractor in the performance of this agreement are the sole responsibility of Contractor. 5. Title shall be reserved to the State for any State -furnished or State -financed property authorized by the State which is not fully consumed in the performance of this agreement. Contractor is responsible for the care, maintenance, repair, and protection of any such property. Inventory records shall be maintained by Contractor and submitted to the State upon request. All such property shall be returned to the State upon the expiration of this contract unless the State otherwise directs. 6. If travel is a reimbursable item, the reimbursement for necessary traveling expenses and per diem shall be at rates set in accordance with Department of Personnel Administration rates set for comparable classes of State employees. No travel outside of the State of California shall be authorized. No travel shall be authorized outside of the legal jurisdiction of Contractor without prior authorization by the State. 4-25 PAYMENT PROVISION Page 2 of 2 Exhibit B 7. Prior authorization by the State in writing is required before Contractor will be reimbursed for any purchase order or subcontract exceeding $2,500 for any articles, supplies, equipment, or services to be purchased by Contractor and claimed for reimbursement. Contractor must justify the necessity for the purchase and the reasonableness of the price or cost by submitting three competitive quotations or justifying the absence of bidding. 8. Prior approval by the State in writing is required for the location, costs, dates, agenda, instructors, instructional materials, and attendees at any reimbursable training seminar, workshop or conference, and over any reimbursable publicity or educational materials to be made available for distribution. Contractor is required to acknowledge the support of the State whenever publicizing the work under the contract in any media. 9. It is understood between the parties that this contract may have been written before ascertaining the availability of appropriation of funds, for the mutual benefit of both parties, in order to avoid program and fiscal delays that would occur if the contracts were executed after that determination was made. 10. BUDGET CONTINGENCY CLAUSE - It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations under this Agreement and Contractor shall not be obligated to perform any provisions of this Agreement. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an agreement amendment to Contractor to reflect the reduced amount. Updated 1/17/19 4-26 Exhibit D Special Terms and Conditions I . Disputes: Any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Director, Department of Alcoholic Beverage Control, or designee, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the Contractor. The decision of the Department shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the Contractor mails or otherwise furnishes to the State a written appeal addressed to the Director, Department of Alcoholic Beverage Control. The decision of the Director of Alcoholic Beverage Control or his duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, capricious, arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this clause, the contractor shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, Contractor shall proceed diligently with the performance of the contract and in accordance with the decision of the State. 2. Termination Without Cause: Either party may terminate this agreement at any time for any reason upon ten (10) days written notice. No penalty shall accrue to either party because of contract termination. 3. Contract Validity: This contract is valid and enforceable only if adequate funds are appropriated in Item 2I00-101-3036, Budget Act of 2019, for the purposes of this program. 4. Contractor Certifications: By signing this agreement, Contractor certifies compliance with the provisions of CCC 04/2017, Standard Contractor Certification Clauses. This document may be viewed at htti)s:l/www.dgs.ca.gov/OL5 Resources/Page-Content/Office-of-Legal-Services- Resources-List-Folder/Standard-Contract-Language . If the State determines that the grant project is not achieving its goals and objectives on schedule, funding may be reduced by the State to reflect this lower level of project activity. Updated 2/20/19 4-27