HomeMy WebLinkAbout07 - Grant Agreement with California State LibraryCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 7
March 25, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Lois Thompson, Administrative Manager
949 - 644 -3311
Ithompson @city.newport - beach.ca.us
SUBJECT: APPROVAL OF GRANT AGREEMENT BETWEEN CALIFORNIA STATE
LIBRARY AND THE CITY OF NEWPORT BEACH
RECOMMENDATION:
Approve the Grant Agreement between the California State Library and the City of
Newport Beach and authorize the Mayor and City Clerk to execute the Agreement.
DISCUSSION:
On December 2, 2002, the City received official notification the California Public Library
Construction and Renovation Board had approved our grant application in the amount
of $3,180,739 for the Mariners Joint Use Library Project. The next step in the grant
process is the execution of a grant agreement.
The Agreement sets forth terms, conditions, grant payment, and audit requirements.
Staff has had one meeting with the Library Board Staff to discuss the fund accounting
and record keeping required by the grant.
Environmental Review:
Under the California Environmental Quality Act Implementing Guidelines (CEQA),
Planning Department Staff has determined a Notice of Exemption is appropriate for this
project. Staff has determined that it qualifies for a categorical exemption pursuant to
Section 15332 (Class 32, In -Fill Development Projects) of the CEQA Guidelines and
recommended Council approval of the Notice of Exemption. Council approved a Notice
of Exemption for this project on June 11, 2002.
Public Notice:
Not applicable at this time.
SUBJECT: Approval of Grant Agreement between California State Library and the City of Newport Beach
March 25, 2003
Page 2
Funding Availability:
Not applicable at this time.
Prepared by:
Lois Th moLois
Lois nono
Administrative Manager
Attachments: Agreement
Submitted by:
F6 G. Badum
Works Director
GRANT AGREEMENT BETWEEN THE
CALIFORNIA STATE LIBRARY AND THE CITY OF NEWPORT BEACH
GRANT AWARD NO: 1038
SECTION J. THE PARTIES
The parties of this Grant Award Agreement are the California State Library (State), the grantor, and the
City of Newport Beach, the grantee.
SECTION 2. THE GRANT
As authorized by the California Reading and Literacy Improvement and Public Library Construction and
Renovation Bond Act of 2000, with the approval of the California Public Library Construction and
Renovation Board, the State hereby grants the City of Newport Beach (Grantee), the sum of
$3,180,739 for the purpose of constructing the public library described in Grantee's Public Library
Project Application Proposal No. 1038, which proposal is hereby incorporated by reference into this
Agreement.
SECTION 3. TERMS OF AGREEMENT
A. This agreement is effective upon its execution by both parties and expires on
B. Prior to the expiration of the term of this Agreement, State may extend the term of this
Agreement, by written amendment hereto, if State, in its sole discretion, determines such
extension is necessary.
SECTION 4. GRANT AWARD CONDITION
A. In all aspects of administration, implementation, and construction of its public library project,
Grantee shall conform to the requirements of the California Reading and Literacy Improvement
and Public Library Construction and Renovation Bond Act of 2000 (Act), the regulations
implementing the Act, and shall expend grant funds in accordance with the Act and applicable
regulations.
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B. Grantee shall construct the library proposed in its Public library Project Application Proposal
No. 1038.
SECTION 5. GRANT PAYMENTS
A. Grantee shall submit to the State required financial and program performance reports
satisfactory to the State detailing Grantee's expenditure of Grant funds.
B. Grant payments shall be payable on a reimbursement basis;
C. Payments shall be made no more frequently than on a monthly basis. Payment requests shall
be made only for eligible project costs. Payment requests shall be submitted on a form
prescribed by the State librarian, and sent to:
Bond Act Fiscal Officer
California State library
1029 J Street, Suite 400
Sacramento, CA 95814
916- 445 -9592
D. In the event that the funding provided is greater than the cost of Project, Grantee shall return the
portion of funding which exceeds the cost of the Project to the State.
SECTION 6. PAYMENT RETENTION
State shall withhold 10% from each payment request, which shall be paid to the Grantee when all of the
following have been completed:
A. All eligible project costs have been expended; and all required financial and performance
reports concerning the Project have been submitted..
B. Grantee certifies, by providing a compliance letter from the local building official, that the
building has been completed in accordance with the approved plans and specifications,
including installation of book stacks.
C. Grantee shows evidence that the building title has been accepted by Grantee; and,
D. All ineligible cost issues, identified under interim or final audits performed by The California
Department of Finance (DOF), have been resolved.
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SECTION 7. SUSPENSION OR TERMINATION OF PAYMENT
State may at any time during the term of this Agreement, suspend or terminate payment to Grantee, in
whole or in part, in the event of any of the following occurrences:
A. If Grantee has made or makes any material misrepresentation with respect to information or
statements furnished to the State required by this Agreement.
B. If there is any litigation with respect to the performance by Grantee of any of its obligations
under this Agreement, which may materially jeopardize or adversely affect the undertaking of, or
carrying out of, the purposes of this Agreement.
C. If Grantee fails to comply with any of the terms of this Agreement.
D. If Grantee applies for, or consents to, or acquiesces in the appointment of a receiver, trustee,
liquidator or custodian for all or part of its property; or if Grantee files a voluntary petition in
bankruptcy or petition or an answer seeking liquidation or reorganization under the United
States Bankruptcy Code or any other law related to bankruptcy or insolvency or relief of debtors.
SECTION 8. STATE'S RIGHT TO AUDIT
A. Grantee shall maintain, by generally accepted accounting principles applicable for local
government, a complete record of all financial transactions related to this Agreement. The
accounting standards used shall be those promulgated by the Government Accounting
Standards Board and the Financial Accounting Standards Board in effect during the term of this
Agreement.
B. In determining whether Grant funds are expended for intended purposes as prescribed under
this Agreement, the entire Project, including the progress of the Project and Grant fund
expenditures, are subject to audit and examination by the California Department of Finance
(DOF) during the Project and for a period of five years after the final payment has been made,
or for such longer period, if any, as is required by DOF.
C. Grantee agrees that the California State Library and DOF auditors or representatives, upon
reasonable advance notice to Grantee, shall have access and the right to audit, examine, and
make excerpts or transcripts of or from records. Records include contracts, subcontracts,
invoices, receipts, payrolls and personnel information, conditions of employment, documents of
change orders, budget change requests, indirect costs allocation plan, and all other data or
financial records relating to matters covered under this Agreement.
D. Grantee further agrees that such right of State to examine or audit shall continue for five (5)
years after the expiration or termination of this Agreement, or for such longer period, if any, as is
required by applicable law. Grantee shall preserve and make available its records (i) until the
expiration of five (5) years from the date of expiration or sooner termination of this Agreement,
or (ii) for such longer period, if any, as is required by DOF.
SECTION 9. INELIGIBLE COSTS, OFFSET AND RESTITUTION
A. ineligible costs may be identified through audits, Grantee monitoring or other sources of
information that become available to State.
B. Ineligible costs shall also include expended costs concluded to be ineligible during The
California Department of Finance's interim or final audits of grant fund expenditures. Further,
the ineligible costs may be applied to offset subsequent payments to Grantee required under
this Agreement. In the event that ineligible costs exceed subsequent payments, Grantee shall
repay the excess to State within ninety (90) days unless otherwise extended by the State.
C. Without limiting any other contractual remedies available to State for breach of this Agreement,
Grantee agrees to make restitution to State for any cost incurred by Grantee and paid with bond
funds that are not allowable under applicable State statutes, rules, regulations, policies and
procedures, or the terms of this Agreement.
SECTION 10. FUNDING CONTINGENCY
Funding of this agreement is contingent upon availability of funding through the sale of General
Obligation Bonds and /or General Fund loans requested by State. In addition, this Agreement is subject
to any law or additional restrictions, limitations, or conditions enacted by the Legislature that may affect
the provisions, terms or funding of this Agreement in any manner. This contingency will remain in effect
during the entire term of the Agreement, including any extension to the term agreed upon by State and
Grantee.
SECTION 11. RESOLUTION OF DISPUTES
If Grantee and State cannot agree on disposition of State Building Code (California Code of
Regulations, Part 1, Title 24) matters during any reviews by State, State and Grantee may submit such
matters to The Division of State Architect (DSA), California Department of General Services, for
determination. Both State and Grantee should accept the DSA determination as final disposition of
such matters.
SECTION 12. COMPLIANCE WITH LAWS
Grantee shall comply with all applicable laws, ordinances, codes and regulations of federal, state, and
local governments in carrying out its obligations under this agreement.
SECTION 13. WAIVER
Grantee agrees that waiver by the State of any breach or violation of the terms or conditions of this
Agreement shall not be deemed to be a waiver of any other term or condition contained herein or a
waiver of any subsequent breach or violation of the same or any other term or condition.
SECTION 14. SEVERABILITY
If any term, covenant, condition or provision of this Agreement, or the Application thereof to any person
or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, covenants, conditions or provisions of this Agreement, or
the Application thereof to any person or circumstance, shall remain in full force and effect and shall in
no way be affected, impaired or invalidated thereby.
SECTION 15. PRIOR AGREEMENTS AND AMENDMENTS
This Agreement, including all Exhibits attached hereto, represents the entire Agreement of the parties
as to those matters contained herein. No prior oral or written understanding shall be of any force or
effect with respect to those matters covered hereunder. This Agreement may only be modified by a
written amendment duly executed by the parties to this Agreement.
SECTION 16. MISCELLANEOUS PROVISIONS
A. The headings of the sections and subsections of this Agreement are inserted for convenience
only. They do not constitute a part of this Agreement and shall not be used in its construction.
B. Where this Agreement refers to State and no officer of the State is named, the State Librarian or
his or her designee(s) shall have the authority to act on State's behalf.
SECTION 17. AUTHORITY AND STATUS OF GRANTEE
A. Grantee represents and warrants that the individual who executes this Agreement is duly
authorized to do so by Grantee.
B. Grantee warrants that it will possess all the necessary licenses and /or permits required by any
governmental agency in order to carry out the purpose contemplated herein.
APPROVED AS TO FORM
CALIFORNIA STATE LIBRARY
STATE LIBRARIAN OF CALIFORNIA
DR. KEVIN STARR
GRANTEE
AGENCY
AUTHORIZED SIGNATURE
PRINTED NAME AND TITLE OF PERSON SIGNING
DATE