HomeMy WebLinkAboutContract 1627 [ 6101
FUNDING AGREEMENT BETWEEN
CITY OF CATHEDRAL CITY AND
THE CATHEDRAL CENTER
This Funding Agreement ("Agreement") is executed as of June 22, 2015, by and
between the CITY OF CATHEDRAL CITY, a California municipal corporation ("City")
and the THE CATHEDRAL CENTER, a California non-profit organization ("Cathedral
Center").
RECITALS
WHEREAS, the City desires to promote the activities of the Cathedral Center
(hereinafter, the "Cathedral Center Services"), which seeks to improve the quality of life
for seniors and to assist all seniors, from the active to the homebound, by providing
services that channel energy, relieves suffering and protects their health, happiness and
well-being; and
WHEREAS, the City wishes to provide funding to the Cathedral Center under
certain specified conditions in order to promote the Cathedral Center's mission.
NOW, THEREFORE, IT IS AGREED as follows:
1. City's Obligations. In consideration of the items identified below to be
provided by the Cathedral Center, the City will do the following:
a. The City will make an annual contribution to the Cathedral Center
for the Cathedral Center Services of an amount not to exceed $50,000.00 per fiscal
year. The payment shall be paid quarterly.
b. In addition to the annual funding provided by the City specified in
subsection (a) above, the City will make a one-time loan to the Cathedral Center in the
amount of $50,000.00, subject to the conditions and repayment schedule specified in
Section 2 below. This $50,000.00 loan shall be disbursed by the City to the Cathedral
Center by no later than June 30, 2015.
2. The Cathedral Center's Obligations. In consideration of the City's
contribution, the Cathedral Center will do the following:
a. With respect to the $50,000 loan from the City to the Cathedral
Center referenced in Section 1 above, the loan shall be repaid at the rate of $10,000.00
per annum, without interest. The repayment shall be due by no later than July 15th of
each year for a total of five (5) years, with the first payment being due prior to that date
in the year 2016.
b. If contributions to the Cathedral Center from individuals, grants,
foundations, and other sources exclusive of the contributions from the City of Cathedral
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City and the City of Rancho Mirage exceed $60,000.00 in the fiscal year immediately
preceding the date on which each repayment for the loan is due as provided in
subsection (a) of this Section 2 above, then $5,000.00 of the repayment due for that
year shall be forgiven. If such contributions exceed $75,000.00, the entire $10,000.00
repayment due for that year shall be forgiven.
c. The City shall be permitted to designate a member of its City
Council who shall act as an ex-officio member of the Board of Directors of the Cathedral
Center during the term of this Agreement. The Cathedral Center agrees that it shall be
required to amend its Articles of Incorporation and/or Bylaws to allow such ex-officio
member from the City to serve in this capacity, if necessary.
d. The Cathedral Center shall be required to provide quarterly reports
to the City during the term of this Agreement, which shall include detailed information
concerning the Cathedral Center's financial status, fundraising progress, operational
data, and strategic plan progress.
3. No Continued Funding. In the event that the Cathedral Center ceases to
operate, any remaining installments due to the Cathedral Center shall not be paid by the
City. Further, the City shall review this Agreement in April, 2016, or at the soonest
reasonable date thereafter at the City's sole discretion, to determine whether the City
wishes to continue its participation in the Agreement.
4. Term. This Agreement shall become effective upon the date of execution
hereof and shall expire five (5) years after the date of execution.
5. Administration of Agreement. The City Manager or his designee is hereby
designated to administer this Agreement on behalf of City and is hereby authorized to
make any determination on behalf of the City necessary for implementation of the
provisions of this Agreement.
6. Reviews. The City shall have the right to monitor the Cathedral Center's
performance under this Agreement, as to progress and performance. Records and
supporting documents pertaining to the use of City funds as paid to the Cathedral
Center shall be retained by the Cathedral Center and made available to the City.
7. Suspension and Termination. This Agreement may be suspended or
terminated by the City at any time upon ten (10) days written notice provided to the
Cathedral Center. Any such suspension or termination initiated by the City shall not
effect the repayment requirements pursuant to Section 2 above. The requirement for
the delivery to the City of a written report shall also remain in effect, regardless of the
reason for termination. Termination or suspension of this Agreement, as provided
herein, shall not cancel, suspend or otherwise affect the liability of the Cathedral Center
nor impair any other remedy for breach of this Agreement the City may have. Such
suspension or termination, in total or in part, may be, but is not limited to the following:
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a. Suspension or termination with cause, as a result of the Cathedral
Center's materially failing to comply with any term of this Agreement, undertaking or
permitting to be undertaken any action that is contrary to any established plan, policy,
regulation, rule or other statement of direction of the City, or undertaking or permitting to
be undertaken any action that attracts undue, adverse or negative publicity of such a
nature and duration as to affect or potentially affect the City.
b. Suspension or termination for convenience.
c. Suspension or termination in the event of any proceedings,
voluntary or involuntary, by or against the Cathedral Center, related to solvency or
management of the nonprofit organization, dissolution of the Cathedral Center by its
governing body, or loss of nonprofit status.
8. Compliance with Law. This Agreement shall be governed and construed
in accordance with the laws of the State of California.
9. Force Majeure. Either party to this Agreement is excused from default of
performance because of conditions beyond the control of the parties, such as war,
insurrection, strikes, riots, civil insurrection, acts of God and any other such similar
cause beyond either party's control.
10. Hold Harmless. Between the parties hereto, the Cathedral Center is solely
liable to its employees, agents, volunteers and independent subcontractors and third
parties for all losses, costs, damages or injuries, including wrongful death, caused by
any act or omission of the Cathedral Center, its employees, agents, volunteers or
independent subcontractors relating to the services or activities performed or to be
performed by the Cathedral Center hereunder, and the Cathedral Center shall defend,
indemnify and hold harmless the City, its officers, agents, volunteers and employees, on
any claim of liability arising out of any act or omission by the Cathedral Center as
regards any work, service, or activity to be performed by or authority delegated to the
Cathedral Center. It is understood and agreed that no official, employee or agent of the
City shall be personally liable to any third party as to any obligation or obligations under
the terms of this Agreement requiring application of any federal and state prevailing
wage requirements. The Cathedral Center shall hold the City, its officers and
employees harmless from all claims, demands, causes of action, expenses, and liability
of whatsoever kind or nature which may arise out of, because of, concerning, or incident
to the performance of the Cathedral Center under this Agreement, including all court
actions, costs and expenses and attorney's fees relative to the City being a party to this
Agreement as may be initiated by any third party for any alleged violation of any federal
or state prevailing wage requirements.
11. Comprehensive General and Automobile Liability Insurance. The
Cathedral Center shall procure and maintain at its own expense, during the term of the
Agreement, commercial general liability insurance and automobile liability insurance,
each of not less than One Million Dollars ($1,000,000.00) combined single limit per
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occurrence, and Two Million Dollars ($2,00,000.00) in the aggregate, for bodily injury,
personal injury and property damage. The City Manager, subject to consent of the City
Attorney, may waive or modify the insurance requirements, or reduce the amounts of
liability coverage, upon a finding that such waiver or modification poses no significant
risk of liability to the City and imposes an undue financial burden on the other party
relative to the cost of their services and the goods, supplies and/or equipment to be
provided to the City.
12. Worker's Compensation. The Cathedral Center shall procure and
maintain at its expense, during the term of this Agreement, workers' compensation
insurance, providing coverage as required by the California State Workers'
Compensation Law. If any class of employees employed by the Cathedral Center
pursuant to this Agreement is not protected by the California State Workers'
Compensation Law, the Cathedral Center shall provide adequate insurance for the
protection of such employees to the satisfaction of the City. This provision shall not
apply if the Cathedral Center has no employees performing work under this Agreement.
If the Cathedral Center has no employees for the purposes of this Agreement, the
Cathedral Center shall sign the Certificate of Exemption from Worker's Compensation
Insurance, attached hereto and incorporated herein by this reference as Exhibit "A."
13. Additional Named Insured. Notwithstanding any inconsistent statement in
any required insurance policies or any subsequent endorsements attached thereto, the
protection offered for general liability and automobile liability insurance shall bear an
endorsement whereby it is provided that the City is named as an additional insured.
14. Waiver of Subrogation Rights. The Cathedral Center shall require the
carriers of all required insurance policies to waive all rights of subrogation against the
City and its officers, volunteers, employees, contractors and subcontractors.
15. Proof of Insurance Coverage. The Cathedral Center shall secure from a
good and responsible company or companies authorized to do insurance business in
the State of California, and possessing a Best's rating of no less than A:VII, the policies
of insurance required by this Agreement and furnish to the Contract Specialist of the
City certificates of said insurance on or before the commencement of the term of this
Agreement. The certificates of insurance shall bear an endorsement whereby it is
provided that the respective insurance policy shall not be terminated or expire without
first providing thirty (30) days' written notice to the City of such termination or expiration.
The certificates of insurance shall indicate that the respective insurance policies will be
maintained throughout the term of this Agreement. Prior to execution of this Agreement,
the Cathedral Center shall furnish to the City certified copies of all required insurance
policies and endorsements.
16. Notice. Under this Agreement, whenever provision is made for notice of
any kind, it shall be deemed sufficient notice, and service thereof, if the said notice is in
writing, deposited in the mail in a properly stamped envelope to be delivered by certified
mail, and addressed as indicated in this section. Changes in respective addresses to
which such notices shall be directed may be made from time to time by either party.
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Notice of change of address shall be accomplished in writing and sent certified mail
fifteen (15) days in advance of delivery to the new address.
To the City: Charles McClendon, City Manager
City of Cathedral City
68-700 Avenida Lalo Guerrero
Cathedral City, California 92234
To Cathedral Center: Paul Padilla, President
The Cathedral Center
37-171 West Buddy Rogers Avenue
Cathedral City, California 92234
17. Waiver. One or more waivers of any covenant, warrant or term or
condition of default of the provisions of this Agreement, by either the City or the
Cathedral Center, shall not be construed as a waiver of a further breach of the same
covenant, warrant, term or condition or the right of such party thereafter to enforce each
and every provision.
18. Litigation Expenses and Attorney's Fees. In the event any action, suit or
proceeding is brought for the enforcement of, or the declaration of any right or obligation
pursuant to this Agreement or as a result of any alleged breach of any provision of this
Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its
costs and expenses, including reasonable attorney's fees, from the losing party, and
any judgment or decree rendered in such a proceeding shall include an award thereof.
19. No Third Party Beneficiaries. The parties do not intend the benefits of this
Agreement to inure to any third party, nor shall any provision of this Agreement be so
construed.
20. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original. Electronic and facsimile signatures shall be
deemed to be one and the same as original signatures.
21. Complete Agreement. This Agreement contains all the terms and
conditions agreed upon by the parties. No other understandings, oral or otherwise,
regarding the subject matter of this Agreement shall be deemed to exist or to bind any
of the parties hereto. This Agreement supersedes all previous agreements, if any,
between the parties.
22. Amendments. Any alterations, variation, modifications or waivers of
provisions to the Agreement shall be valid only when reduced to writing, duly signed
and attached to the original of this Agreement.
23. Assignability. The Cathedral Center shall not assign any interest in this
Agreement without the prior written consent of the City, and any attempted assignment
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without such consent shall be void. This Agreement binds the devises, assigns and
successors of the Cathedral Center.
IN WITNESS WHEREOF, this Agreement has been executed by the parties
hereto on the date first above written.
CITY OF CATHEDRAL CITY iikE CAT 'RAL CENTER
harles McClendon, City Manager • aul Padilla, President
ATTEST:
(jviGary
How''II, City Clerk
APPROVED AS TO FORM:
Charles R. Green, City Attorney
P:\APPS\WPDATA\CATH\0001\DOC\2953-Cathedral Center Funding Agreement(06.15.15).doc
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EXHIBIT "A"
CERTIFICATE OF EXEMPTION
FROM WORKERS' COMPENSATION INSURANCE
I certify that, in the performance of the work to be performed by the Cathedral Center of
the Desert for the City of Cathedral City, I shall not employ any person in any manner so
as to become subject to the workers' compensation laws of California, and agree that if I
should become subject to the workers' compensation provisions of the California Labor
Code, I shall forthwith comply with those provisions.
i7r oaJ/-
NOP��/, // Date: G , 2015
ame & Signa ure