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HomeMy WebLinkAbout04/17/1990, C-9 - CONSIDERATION OF A REQUEST TO RELEASE $25,000 IN FUNDING TO LA FIESTA, ONCE THEIR NON-PROFIT STATUS MEETING DATE: city of san Luis oBispo 4/11/90 90 COUNCIL AGENDA REPORT ITEM NUMB7L FROM: John Dunn, City Administrative Officer Prepared By: Deb Hossli, Administrative Analyst SUBJECT: Consideration of a request to release $25, 000 in funding to La Fiesta, once their non-profit status is obtained, for the purpose of hiring an administrator to organize the 1990 celebration CAO RECOMMENDATION: By motion, acknowledge that. La Fiesta has met the conditions set by the City Council to receive the $25,000 grant and authorize the City Administrator to execute an agreement with La Fiesta to release the funding once their non-profit status has been obtained. DISCUSSION In January of this year, the City Council approved a one time grant of $25, 000 to La Fiesta. The purpose of the grant was to provide La Fiesta with sufficient funding to hire an administrator to coordinate the 1990 celebration. The Council's direction also allowed La Fiesta to use any monies remaining after the administrator had been hired to contract with a professional parade organizer for the La Fiesta parade or for other appropriate 1990 La Fiesta celebration expenses. Prior to the funding being released the City Council has stipulated that La Fiesta must submit an expenditure plan for the $25,000 and an executed contract for the administrator position. The administrator's contract must also include a provision that requires the position to complete an organizational and financial plan for La Fiesta. The plan must focus on making the event financially self supporting in the shortest timeframe possible and to be submitted to the City by August 31, 1990. In accordance with Council direction, La Fiesta has submitted an expenditure plan for the $25,000 grant (Attachment A) . La Fiesta intends to use their entire grant to fund the costs of the administrator position for one year. Initially, it had been La Fiesta's intention to contract with the administrator position for a shorter period and use the remaining monies to hire a professional parade organizer. Because the group feels that the administrator position is so vital, they're requesting to set aside the entire grant for this purpose. City staff concurs with this approach. La Fiesta has also submitted an executed agreement for the administrator position (Attachment B) that meets the conditions set by the City Council. The initial contract for the position is for six months, from April 1990 to October of 1990, at a cost of "RWf j city of San Luis OBISPO COUNCIL AGENDA REPORT Council Agenda Report Page Two 1Z $12,500. The remaining grant monies ($12,500) will be usedhextend the administrator's contract for a subsequent six month period, assuming that La Fiesta is satisfied with the position and the performance of the incumbent. Staff has reviewed the documentation submitted by La Fiesta and determined that it meets the intent of the Council's direction. The only remaining issue relates to La Fiesta's non-profit status. La Fiesta's non-profit status application is currently under review by the State and is expected to be approved in the very near future. Because the City cannot release the grant funding to La Fiesta until they receive their non-profit status, ' staff is recommending that an alternative approach be taken to speed the process. It is recommended that the Council acknowledge that La Fiesta has met the conditions set by the City Council and therefore authorize the City Administrator to execute an agreement releasing the $25, 000 (Attachment C) to La Fiesta once they've obtained their non-profit status. It should also be noted that when the Council initially considered La Fiesta's request for funding support in January of this year, the group indicated that it would take approximately three years to reach financial self sufficiency. In order to plan for future years funding needs, La Fiesta has requested monies through the 1990-91 Promotional Coordinating Committee (PCC) Grants-In-Aid process. The PCC Grant-In-Aid Subcommittee is currently reviewing their request for funding and will make recommendations to the Council in June of this year. FISCAL IMPACT During the January meeting, the Council formally approved the funding arrangements for the $25,000 grant. Monies will be taken from a combination of sources; available funding in the PCC budget ($8,500) and available fund balance in the General Fund ($16,500) . ATTACHMENTS: * "A" Expenditure plan from La Fiesta * "B" Executed contract with Suzanne Day for administrator services * "C" Agreement to release $25,000 to La Fiesta DH\If$ i , tir ATTACHMENT A LA FIESTA The City of San Luis Obispo is providing La Fiesta with a $25, 000 grant to assist in the sponsorship of the 1990 La. Fiesta Celebration. La Fiesta agrees to expend the $25, 000 in the following manner: *To hire an administrator that is responsible for coordinating the 1990 La Fiesta Celebration and preparing a financial and organizational plan that sets out a program for becoming financially self supporting. The financial and organizational plan requirement must be included as a provision of the negotiated contract for the administrator and will be due to the City by August 31, 1990. La Fiesta By: n C-9-3 > 5d de San W5 Obi5po' 1`051 Office box 1733 San Luis Obispo, California 93406 o 605-543-1710 1 CONTRACT OF EMPLOYMENT THIS CONTRACT is entered into this 1 st day of April, 1990, by and between LA FIESTA de SAN LUIS OBISPO (hereinafter referred to as "La Fiesta"), and SUZANNE M. DAY, a contract employee (hereinafter referred to as"Employee"). WITNESSES: WHEREAS, La Fiesta has a need to hire an employee for a special project for which continued funding or need for the project is too uncertain to create a permanent classification; And WHEREAS, Employee is qualified to perform such service for La Fiesta; and WHEREAS, the services to be contracted for are La Fiesta Executive Director. NOW, THEREFORE, the parties do mutually agree as follows: 1. Employment. La Fiesta hereby engages Employee and Employee hereby agrees to perform for La Fiesta the services hereinafter set forth for the compensation hereinafter set forth, all pursuant to the terms and conditions herein. 2. Scope of Services. Pursuant to this Contract, Employee shall provide to La 'Fiesta the following services: Executive Director for La Fiesta de San Luis Obispo; prepare a financial and organizational plan that sets out a program for La Fiesta to become financially self-supporting as required in contract for City of San Luis Obispo funding; specific duties and responsibilities to be established and modified from time to time by the La Fiesta Board of Directors. Employee shall perform said services under the supervision of the La Fiesta Board of Directors, being directly responsible to the President of said Board. Celebrated annualltj on the Third weekend in MaU Attachment "B" 3. Employment Status. Employee shall be a full-time employee. Employee understands and agrees that she Is not;and will not, be eligible for membership in any benefits from any City of San Luis Obispo group plan for hospital, life,dental or medical insurance. Employee shall accrue 8.00 hours of sick leave per month. Employee shall accrue 8.0 hours of vacation per month over the term of this,Agreement which shall be taken upon approval by the Board of Directors. Employee shall receive the following paid holidays during this contract period: May 28 (Memorial Day); July 4 (Independence Day); and September 3 (Labor Day). Employee shall be granted up to 40 hours per year of administrative leave in lieu of overtime compensation, in recognition of the fact that the employee Is exempt from overtime compensation consideration and that the employee's schedule may require work beyond 40 hours in a week. The only other paid benefits are workers' compensation insurance and unemployment insurance. Employee shall be eligible for reimbursement for mileage at a rate of$0.24 per mile for use of her private automobile for official business but not including any mileageattributable to normal commuting by Employee to and from her office. 1 Employee understands and agrees that she Is not entitled to be paid a prevailing wage, but that the compensation received.herein is a negotiated wage to be paid for the services to be performed. Employee understands and agrees that her term of employment is governed only by this Contract and that no right of tenure is created.hereby. 4. Warranty of Employee. Employee warrants that she is properly certified and 'licensed under the laws and regulations of the State of California to provide the services herein agreed to. S. Compensation. La Fiesta shall pay to Employee as compensation in full for all services performed by Employee pursuant to this Contract, the sum of$2,083.33 per month ($12,500 for six months), said compensation to be paid in accordance with normal La Fiesta -- procedures. Employee shall be eligible to receive an incentive bonus of up to 5%of her contracted salary amount at the end of said contract period. This amount is subject to approval by the Board of Directors. Guidelines of said bonus will be set forth by the Board of Directors. 04-6w 6. Term of Contract. This Contract shall commence on April 1. 1990 through September 30, 1990, unless terminated earlier as provided herein. The La Fiesta Board of Directors may terminate the contract without the need for action, approval or ratification by any —' other. 7. Termination of Contract for Convenience. Either party may terminate this Contract at any time by giving to the other party thirty (30) days'written notice of such termination, specifying the effective date of such termination. Employee shall be paid for all work satisfactorily completed prior to the effective date of such termination. Employee agrees that the notice provisions of this paragraph shall limit the liability of La Fiesta in the event that a termination action taken by La Fiesta pursuant to paragraph 8 is subsequently found to be improper. 8. Termination of Contract for Cause. If Employee fails to perform her duties to the satisfaction of La Fiesta, or if employee fails to fulfill in a timely and professional manner the obligations under this Contract, or if Employee shall violate any of the terms of provisions of this Contract, or if Employee has a physical or mental incapacity that precludes Employee from performing the duties,or if Employee fails to exercise good behavior in either during or outside of working hours which is of such a nature that it causes discredit to La Fiesta or impairs her ability to perform these contract duties,then La Fiesta shall have the right to terminate this Contract effective immediately upon La Fiesta's giving written notice thereof to Employee. Employee shall be paid for all work satisfactorily completed prior to the effective date of such termination. 9. Entire Agreement and Modification. This Contract constitutes the entire understanding of the parties hereto. This Contract supersedes all previous contracts, agreements, negotiations or understandings, whether written or oral,between the parties. Employee shall be entitled to no other benefits than those specified herein, and Employee acknowledges that no representations, inducements or promises not contained in this Contract have been made to Employee to induce Employee to enter into this Contract. No changes, amendments, or alterations hereto shall be effective unless in writing and signed by both parties.' Employee specifically acknowledges that in entering into and executing this Contract, Employee relies solely upon the provisions contained in this Contract and no others. 10. Non-Assignment of Contract. This Contract is intended to secure the individual services of the Employee and thus Employee shall not assign,transfer,delegate,or sublet this Contract or any interest therein without the prior written consent of La Fiesta, and any such assignment, transfer,delegation,or sublet without La Fiesta's prior written consent shall be considered null and void. 11. Covenant. This Contract has been executed and delivered in the State of California', and the validity, enforceability and interpretation of any of the clauses of this Contract shall be determined and governed by the laws of the State of California. All duties and obligations of the parties created hereunder are performable in the City of San Luis Obispo, and La Fiesta shall be that venue for any action,or proceeding that may be brought, or arise out of, inconnection with or by reason of this Contract. 12. Nondiscrimination. There shall be no discrimination against any person i employed pursuant to this contract in any manner forbidden by law. 13. Conflicts of Interest. The employee shall not participate in any decision related to this Contract which affects her personal interest or the interest of any corporation, partnership, or association in which she is directly or indirectly interested. 14. Copyright. Any reports, maps, documents or other materials produced in whole or part under this Contract shall be the property of La Fiesta and shall not be subject to an application for copyright by or on behalf of Employee,without the prior written approval of La Fiesta. 15. Outside Employment, Conduct and Behavior. a. Employee may engage in outside activities such as part-time teaching, consulting,or in other similar activities unrelated to La Fiesta business only with the express prior approval of the La Fiesta Board of Directors. b. Employee shall comply with all local and state requirements regarding conflicts-of-interest and shall avoid personal Involvement in situations which are inconsistent + or inccmNaGGle with the position of La Fiesta Executive Director or give rise to the appearance of impropriety. ~ 16. Enforceability. If any terms,covenant,condition or provision of this agreement is held by a court of competent jurisdiction to be invalid,void or unenforceable, the remainder of the provisions herein shall remain In full force and effect and shall in no way be affected, impaired or invalidated thereby. IN WITNESS THEREOF, La Fiesta and Employee have executed this Contract on the day and year first hereinabove set forth. LA FIESTA de SAN LUIS OBISPO By: Debbie Collins, President EMPLOYEE: _ CONCUR: Suzanne M. Day L _ Christy Noble, Vice President `s Charles Delmartini, Vice President Kay Jensen, Secretary Steve Mathis, Treasurer Vicki Carroll, Out-going President V-q�� AGREEMENT THIS AGREEMENT, dated , for the convenience of the parties hereto, is between the City of San Luis Obispo, a chartered municipal corporation (referred to herein as CITY) and LA FIESTA. WHEREAS, CITY desires to sponsor and support activities of a cultural, artistic and educational nature for the benefit of the CITY's residents and for the promotion of the city as an inviting place for visitors and tourists; and WHEREAS, LA FIESTA has demonstrated its ability to provide a program which contributes to the quality of life in San Luis Obispo; and WHEREAS, LA FIESTA has requested CITY to contribute to a program to provide the activity described in "Exhibit A" (attached hereto);and WHEREAS, said program will be available to CITY residents as described in "Exhibit A", thereby serving both a public and a municipal purpose; NOW THEREFORE, CITY and LA FIESTA, in consideration of the mutual benefits, promises, and agreements set forth herein, do agree as follows: - 1. LA FIESTA agrees to provide the program as described in "Exhibit N. 2. CITY agrees to provide LA FIESTA with a one time grant, in the sum of Twenty Five Thousand Dollars ($25,000.00). 3. LA FIESTA agrees prior to receiving the grant, to provide the CITY with an expenditure plan for the$25,000 grant that allocates sufficient funding to meet the provisions described in"Exhibit B" (attached hereto) and a negotiated and executed contract for an administrator position to coordinate the 1990 LA FIESTA celebration. 4. LA FIESTA and all of its agents, representatives, or participants in any manner in the performance of its obligations and duties hereunder, shall be employees, independent contractors, or volunteers for LA FIESTA only. They shall not for any purpose be considered employees, agents, or independent contractors of the CITY. 5. LA FIESTA agrees to hold CITY harmless, and to defend CITY against, from, and in any claim, action, proceeding, or hearing, including attorney fees and costs; wherein there is an allegation charging liability on the part of the CITY as a result of any act of omission, negligent or otherwise, by LA FIESTA. ATTACHMENT "C," i AGREEMENT Page Two 6. For purposes of notice under this agreement, all notices shall be considered effecwe upon being sent by certified mail to the following addresses: City Administrative Officer P. O. Box 8100 San Luis Obispo, CA 93403-8100 Attention: Debbi Hossli La Fiesta Debbie Collins c/o Del Monte Cafe 1901 Santa Barbara Street San Luis Obispo, CA 93401 IN WITNESS WHEREOF, the parties hereto have executed this agreement by their proper officers duly authorized: LA FIESTA By: � CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION By: APPROVED AS TO FORM: ey: toy ey DH\laagreem i c-9-�o EXHIBIT W LA FIESTA * Summary: La Fiesta is a week long event held the third weekend of May each year.. The event is sponsored by La Fiesta de San Luis Obispo, a local group of interested citizens, and offers a wide variety of activities to the general public. * Purpose of Event: The purpose behind the event is to promote the community's cultural heritage, encourage tourism, provide local service clubs with fund raising opportunities, and raise monies for the continued restoration of the Mission. * Primary Events: 1) Queen Contest and Coronation 2) Zozobra 3) Parade 4) Country Carnival 5) Whiskerino Contest 6) Arts & Crafts Fair 7) EI Presidente Dinner and Ball 8) Entertainment in Mission Plaza 9) Wine & Cultural Celebration 10) Costume Breakfast DH\exh a EXHIBIT NP LA FIESTA — The City of San Luis Obispo is providing La Fiesta with a $25, 000 grant to assist in the sponsorship of the 1990 La Fiesta Celebration. La Fiesta agrees to expend the $25,000 in the following manner: *To hire an administrator that is responsible for coordinating the 1990 La Fiesta Celebration and preparing a financial and organizational plan that sets out . a program for becoming financially self supporting. The financial and organizational plan requirement must be included as a provision of the negotiated contract for the administrator and will be due to the City by August 31, 1990.