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HomeMy WebLinkAbout01-23-19-13/Arts Grant/Actors Theatre of IndianaRESOLUTION NO. BPW 01-23-19-13 RESOLUTION OF THE CITY OF CARMEL BOARD OF PUBLIC WORKS AND SAFETY ACKNOWLEDGING ARTS GRANT WHEREAS, pursuant to Indiana Code 36-1-4-7, the City of Carmel, Indiana ("City"), is authorized to enter into contracts; and WHEREAS, pursuant to Indiana Code 36-4-5-3, the City's mayor may enter into contracts on behalf of the City; and WHEREAS, pursuant to his authority under Indiana law, the City's mayor, the Honorable James C. Brainard, has caused to be signed the Arts Grant attached hereto as Exhibit A (the "Contract"); and WHEREAS, Mayor Brainard now wishes to present the contract to the City's Board of Public Works and Safety for it to be publicly acknowledged, filed in the Clerk -Treasurer's Office, and made available to the public for review. follows: NOW, THEREFORE, BE IT RESOLVED by the City of Carmel Board of Public Works and Safety as 1. The foregoing Recitals are incorporated herein by this reference. 2. The receipt of the Contract is hereby acknowledged. 3. The Contract shall be promptly filed in the office of the Clerk -Treasurer and thereafter made available to the public for review. i u1 SO RESOLVED this23— y of ,l , 2019. CITY OF CARMEL, INDIANA By and through its Board of Public Works and Safety BY: James Brainard, Presiding Officer ATTEST: Christine Pauley, Clerk -Treasurer Date: I — Z 27 ' I i SAE Bass\My Documents\BPW-Resolutions\2019\kknowledge Arts Grant Actors Theatre of India na.docxt/14/2019 3:08 PM ARTS GRANT PROGRAM AGREEMENT This Grant Agreement (herein referred to as "Agreement") entered into by and between the City of Carmel (the "City") and of AjZ1,+A1,6 (the "Grantee"), is executed pursuant to the terms and conditions set forth herein. In consideration of those mutual undertakings and covenants, the parties agree as follows: 1. That on behalf of Grantee, a not -for -profit corporation, I, �,�,5 an authorized representative of Grantee, have applied for a City of Carmel ("Grantor") Arts Grant, said application attached hereto and made a part hereof as Exhibit "A." 2. Grant Agreement. The City, after review and recommendation by the Mayor, agrees to grant $ 240,000.00 to the Grantee for the eligible costs of the project (the "Project") or services as described in Exhibits "A" and "B" of this Agreement. The funds shall be used exclusively in accordance with the provisions contained in this Agreement. Generally, the Grant award may not exceed one third (1/3) of Grantee's combined contributed income, revenue of sales, and/or ticket revenue from the previous year. The City of Carmel may, however, make exceptions for start-up organizations that have been in existence for three (3) years or less. 3. Design and Implementation of Project. The Grantee agrees to use any and all grant funds in accordance with the proposal contained within this agreement and any documents attached to this Agreement, which are incorporated by reference. 4. Warranty of non-profit status. Grantee hereby represents and warrants that it is a not -for -profit entity with a determination letter from the Internal Revenue Service declaring that it is exempt from Federal income tax. 5. Payment of Grant Funds by the City. The payment of this Grant by the City to the Grantee shall be made in accordance with the following conditions: A. This Agreement must be fully executed and signed by both Grantee and Grantor. B. Grantee has attached all the following information, which it represents and warrants to be true and accurate, all which have been incorporated fully by reference: 1. An application and description of the proposed use of the grant funds (EXHIBIT A); 2. A budget for the calendar or fiscal year for which the grant is requested (EXHIBIT B); 3. Certified copies of incorporation as a not -for -profit corporation under state law (EXHIBIT Q 4. A not -for -profit application or determination letter from the U.S. Internal Revenue Service identifying that it is a not -for -profit corporation that is exempt from Federal income tax (EXHIBIT D); 5. Any audits, reviews or compilations available describing the financial condition of the Grantee, most recent available IRS Form 990, and the attached Affidavit (EXHIBIT E); 6. A list of the Grantee's board of directors and officers listed (EXHIBIT F); 7. A Year End Report from the previous year if Grantee received an Arts Grant from the City of Carmel in the previous calendar year, pursuant to paragraph 8 herein (EXHIBIT G). C. Any other grant conditions that City requires to be met by Grantee, specifically: 6. Grantor's right to request audit or review. Grantee shall submit to an audit or review by an independent Certified Public Accountant of funds at the City's request, and shall make all books, accounting records and other documents available at all reasonable times during the term of this Grant Agreement, and for a period of three (3) years after final payment of funds under this Agreement, for the purpose of an audit by the City of Carmel, the State of Indiana, or their designees. Said review or audit, if requested, shall be performed by a Certified Public Accountant ("CPA") who 2 is neither an employee of Grantee nor a member of the Grantee's Board of Directors, to be provided to the City of Carmel by March 31 of the following year. 7. Quarterly financial statements. Grantee agrees to provide the City of Carmel quarterly financial statements within 45 days after each quarter -end for Grant awards in excess of sixty thousand dollars ($60,000). 8. Year-end review. Grantee agrees to provide the City of Carmel a year-end report ("Year End Report") for each year, describing how the grant was used and the impact of the dollars received. 9. Funding Credit. Grantee agrees to credit the City of Carmel in the printed materials associated with a funded program or project. The City of Carmel will supply, upon request, Grantee with the graphics/logos necessary for compliance. 10. Statutory Authority of Grantee. The Grantee expressly represents and warrants to the City that it is statutorily eligible to receive these monies and it expressly agrees to repay all monies paid to it under this Grant, should a legal determination of its ineligibility be made by any Court of competent jurisdiction. 11. Use of Grant Funds by Grantee. The funds received by the Grantee pursuant to this Agreement shall be used only to implement the Project or provide the services in conformance with the Budget and for no other purpose. If it is determined by the City that misappropriation of funds have occurred, the Grantee must return all funds received by Grantor and individuals who misuse Grant funds may also be subject to civil and/or criminal liability under Indiana and Federal law. 12. Employment Eligibility Verification. The Grantee affirms under the penalties of perjury that he/she/it does not knowingly employ an unauthorized alien. The Grantee affirms under the penalties of perjury that he/she/it has enrolled and is participating in the E-Verify program as defined in IC 22-5-1.7. The Grantee agrees to provide documentation to the City that he/she/it has enrolled and is participating in the E-Verify program. The City may terminate for default if the Grantee fails to cure a breach of this provision no later than thirty (30) days after being notified by the State. 13. Governing Law; Lawsuits. This Agreement is to be construed in accordance with and governed by the laws of the State of Indiana, except for its conflict of laws provisions. The parties agree that, in the event a lawsuit is filed hereunder, they waive their right to a jury trial, agree to file any such lawsuit in an appropriate court in Hamilton County, Indiana only, and agree that such court is the appropriate venue for and has jurisdiction over same. 3 14. Relationship of Parties. The relationship of the parties hereto shall be as provided for in this Agreement, and neither Grantee nor any of its compensated officers, employees, contractors, subcontractors and/or agents are employees of City. The Grant amount set forth herein shall be the full and maximum compensation and monies required of City to be paid to Grantee under or pursuant to his Agreement. 15. Severability. If any term of this Agreement is invalid or unenforceable under any statute, regulation, ordinance, executive order or other rule of law, such term shall be deemed reformed or deleted, but only to the extent necessary to comply with same, and the remaining provision of this Agreement shall remain in full force and effect. 16. Entire Agreement. This Agreement, together with any exhibits attached hereto or referenced herein, constitutes the entire agreement between Grantee and City with respect to the subject matter hereof, and supersedes all prior oral or written representations and agreements regarding same. Notwithstanding any other term or condition set forth herein, but subject to paragraph 15 hereof, to the extent any term or condition contained in any exhibit attached to this Agreement or in any document referenced herein conflicts with any term or condition contained in this Agreement, the term or condition contained in this Agreement shall govern and prevail. This Agreement may only be modified by written amendment executed by both parties hereto, or their successors in interest. IN WITNESS WHEROF, the parties hereto have made and executed this Agreement as follows: G Krinted Name of Officer:q,4m 5 A. /S401't. Date: Z ATTEST: K Date: 1-7-2019 :rantee") are) Title: CIT;;James CARMEL ("Grantgr") By: Brainard, Mayor Date: 1— 7 — 2 019 If you have any question concerning the City of Carmers 2019 Arts Grant Program, grant writing, guidelines or application materials, contact: Sharon Kibbe. City of Carniel, One Civic Square. Carniel, IN 46032, Phone: 317-571-2483, skibbOakarntel.ingov. 4 Exhibit "A" An Application and Description of the Proposed Use of the Grant Funds APPLICANT: Name of organization: eF �"�✓� v "',�� Address: tID Ate S w . q%.-,t-rva. _ -'23 Telephone:�aT1.= Z., �9 - Fax: Contact Person: Jim EmaiL_�Q�l!-�Y�_�-iSTTat.G . 04> APPLICATION AMOUNT: $ 2-7 7 D O O DESCRIPTION OF THE PROPOSED USE OF THE GRANT FUNDS: SEC � �'T�-�-fl •C:,c7 off/tq� %- � �, .. Date: !d Name of Officer: %,A^AL� VA,.\A-e� �/1�/ (Additional pages may be added to Exhibit "A") 5 EXHIBIT A: PROPOSAL NARRATIVE Actors Theatre of Indiana November 30, 2018 OVERVIEW OF THE ORGANIZATION Please note that programs shown in bold type are either new or modified programs for ATI. In 2019, Actors Theatre of Indiana will be entering its fourteenth season of presenting Broadway musicals and stage plays, as well as Indiana theatre premieres. It is also our eighth season of performing in the Studio Theatre at the Center for the Performing Arts. Co-founders Don Farrell, Judy Fitzgerald, and Cynthia Collins are professional performers, directors, and choreographers with over 75 years of combined professional experience in Off -Broadway productions, Radio City Music Hall, Madison Square Garden, Las Vegas, National and International Tours, Television, and Regional Theatres. Because of their range of experience and professional connections, we often utilize performers and directors from across the country to fill specific needs and roles in our productions. Quite frankly, Actors Theatre of Indiana could be considered a national theatre company. In 2018, we expanded our mission and added an educational initiative to the organization. We now have two very talented individuals who are responsible for administering our Student Theatre Education Program (STEP). This tuition -based program is for students from 14 to 18 years of age who are contemplating pursuing a career in theatre. The students will work with our professional team from first rehearsal through opening night and be exposed to all facets of theatre production. We were recently notified by Doug Callahan, the Clay Township Trustee, that we have been awarded a $12,000 grant from Clay Township to grow this educational initiative through 2019. COMMUNITY INVOLVEMENT • Members of the Carmel Chamber of Commerce • Members of the Hamilton County Convention & Visitors Bureau • Participated and performed in the 2018 Carmel Fest parade • Participates every summer in the Carmel Farmers Market • Upon request, we provide sign language interpreters for the hearing impaired • Performs annually in Carmel's Veterans Day ceremony • Performs caroling during the Christmas holidays in the Arts & Design District as well as the popular Christkindlmarkt • On occasion we have performed a free summer concert series at Carmel City Center • Performed our Cole Porter Revue at The Barrington's grand opening • Presented "An Evening with Frank Sinatra" at The Bridgewater Club • In collaboration with the Autism Society of Indiana, we have provided a special "lights up, sound down" performance of A Year with Frog & Toad • We provided free tickets to the Big Brothers/Big Sisters organization to see A Year with Frog & Toad • We have performed readings of A Year with Frog & Toad at libraries and schools throughout Carmel and Central Indiana • In February of 2020, there will be a two -night joint concert at The Palladium with the Carmel Symphony Orchestra. The dates have already been reserved at the Palladium for February 21 and 22, 2020. More details about this exciting event will be forthcoming in 2019. EXHIBIT A PROPOSED USE OF 2019 CARMEL ARTS GRANT FUNDING Our focus has always been, and remains, to present theatrical productions that entertain and inspire the audience. Our aggressive use of social media enables us to reach a targeted audience at a fraction of the cost of traditional media. Our 2017/2018 season subscriptions are running approximately 15% ahead of the 2016/2017 season so it is obvious that our audiences are enjoying and supporting our professional productions. We are committed to the following organizational values: • We will continue to utilize professional talent from New York, Chicago, and Los Angeles to enhance the professionalism of our productions. • We will continue to invest wisely in our production values, including stage design, sound design, and lighting design. • We will strive to present at least two productions a year with larger casts and tremendous name recognition. • We will strive to grow and expand the educational component of the organization to include as many students as possible. • We will continue to give back to the community by performing at local events at no charge. A few of the events are the Veterans Day Ceremony, the Lighting of the Tree at Christmas, Holiday in the Arts District, and the Carmel International Arts Festival. The Carmel Arts Grant enables us to proudly represent the City of Carmel as the Resident Professional Theatre Company at The Center for the Performing Arts. We are at the point in our artistic existence in the Studio Theatre where we need to continually upgrade our lighting, our production equipment, our cabaret staging equipment, and the music and sound equipment that we use for our productions. We purchased some of this equipment last year with proceeds from the Carmel Arts Grant. Quite simply, these new capital expenditures will be prudent artistic additions, both fiscally and developmentally, and will help ATI to continue offering the professional stage productions that our community so richly deserves. Here is a listing of the equipment that we would like to purchase with a portion of the proceeds from the 2019 Carmel Arts Grant: We need additional movable LED theatrical lighting in the Studio Theatre which will dramatically improve the scenic and lighting effects that are of paramount importance to a live professional theatre experience. We purchased some non -movable lighting last year with the Carmel grant and the addition of moving lights in 2019 will enable us to reduce the amount of lighting that we still need to rent for certain productions. The cost of these scenic and lighting enhancements will be approximately $15,000. • We need to purchase several more Sennheiser microphones (transmitters and receivers) to replace our outdated and unrepairable existing units. The estimated cost of these microphones will be approximately $5,000. • We would like to purchase a hazer machine for use in the Studio Theatre. A hazer will allow us to create atmospheric haze effects for our productions. The cost of a hazer machine is $1,500. This was in our budget for last year but was never purchased due to other priorities. As in prior years, foundation grants, other governmental grants, individual donations, corporate sponsorships, and in -kind donations will supplement the Carmel Arts Grant in supporting Actors Theatre of Indiana. A stock donation plan was implemented in 2018 and a Planned Giving initiative will be implemented in 2019 in the hope that Actors Theatre of Indiana will be included in the estate plans of our patrons. Additionally, and in the spirit of full disclosure, the leadership of the City of Carmel needs to be aware of the following information: As mentioned in Exhibit G, for as long as Actors Theatre of Indiana has been receiving the Carmel Arts Grant, no Grant funds have ever been allocated to increasing staff compensation. We currently have four (4) full-time employees, each being paid an annual salary of $30,000 or $576 weekly. The two individuals who head up our Student Theatre Education Program are paid $15,000 each. The money to cover their salaries comes solely from tuition money and grants generated from the educational program. Our marketing and development initiatives are being managed by Meg Osborne on a $30,000 annual contract. It has become increasingly obvious to the Board of Directors that if we were to lose any of these individuals, for any reason, we would not be able to replace any of them for $30,000, thereby putting the future of the organization in jeopardy. Additionally, everyone should be aware that when our three Founders are performing in an ATI production, they always forfeit their Actors Equity salary of $2,100 per production. They do this to save money for the organization. The Executive Director has made a request to the Board of Directors to form a compensation committee to determine the appropriate salary levels for the staff and to identify sources of funding can be utilized to pay for increased salaries. 2018 FUNDING REQUEST Total revenue per ATI's 7/31/17 financial audit $834,545 Grant award percentage guideline 33.3% Grant Amount Requested $277,000 ACTORS THEATRE OF INDIANA OPERATING BUDGET FOR FISCAL YEAR ENDING JULY 31, 2019 INCOME Earned Income Admission/Ticket Income $ 330,000 Sponsorships $ 30,000 'Theatre Immersion Income $ 25,000 Contributed Income Individual/Corporate Contributions $ 85,000 Foundation Support $ 75,000 Fundraising/Special Events $ 50,000 Government Income Federal NEA $ 15,000 State IAC $ 15,000 City Carmel and HCCVB $ 225,000 Total Cash Income $ 850,000 In -Kind Goods and Services $ 35,000 TOTAL INCOME $ 885,000 EXPENSES Production Expenses Production Personnel $ 315,000 Production Costs $ 160,000 Theatre Immersion Expenses $ 25,000 General & Administrative Expenses Executive Director $ 60,000 Marketing Director $ 30,000 Professional Fees $ 7,000 Consultants $ 25,000 Insurance $ 12,000 Travel & Entertainment $ 5,000 Telephone and IT $ 21,000 Advertising/Professional Fees $ 40,000 Interest & Bank Card Fees $ 5,000 Rent & Occupancy Costs $ 145,000 In -Kind Goods & Services $ 35,000 TOTAL EXPENSES $ 885,000 f-- frr 617- �3 STATE OF INDIANA SS: COUNTY OF HAMILTON AFFIDAVIT �Jomaj A _ 1_4-� , an authorized representative of 6M S 7Wr6DF_, ,✓Z)j a, ✓4 ("Grantee"), being first duly sworn upon my oath, state that pursuant to paragraph 8 of the City of Carmel Arts Grant Program Agreement, all income of Grantee, including a City of Carmel arts grant, if applicable, revenue of sales, and/or ticket revenue, etc., in the Grantee's fiscal year ending 2018 or calendar year ending 2017 totaled Subscribed and sworn to before me, the undersigned Notary Public, this T& day of py "Ihw , 2018. YPUe SHARON M. KIBBE St=AL *Resident of Hamilton Co. My Commission Expires ��oi�e►� July 12, 2026 Signature - Notary Public Printed Name Resident of My Commission Expires: 6 County, Indiana EXHIBIT G ACTORS THEATRE OF INDIANA YEAR-END REPORT 2018 ARTS GRANT FROM THE CITY OF CARMEL In January of 2018, Actors Theatre of Indiana was awarded an arts grant from the City of Carmel in the amount of $220,000. Listed below is a summarization of the programs that were funded by this grant and the effect those programs had in the Carmel community. In an increasingly difficult economic climate for arts organizations, families have many choices as to how they spend their disposable dollars. Carmel is blessed to have a plethora of arts organizations, as well as a high school theater department that is second to none in the country. ATI needs to stand above the crowd with the genius of our marketing efforts and the use of social media. Because of this, in May of 2018 1 retained the services of Meg Osborne and her marketing firm to handle our entire marketing and development efforts. The results of this change in our marketing strategy has been remarkable. The decision to retain Meg Osborne was made possible, in part, using proceeds from the Carmel grant. Because of size restraints in the Studio Theatre, we are unable to present many of the larger Broadway musical productions that the Carmel community would enjoy. Therefore, we need to be creative in the productions that we do present. Unlike community theatres, and because we are a professional equity company, we utilized the Carmel Arts Grant to improve the salaries we pay to the technical people we hire for our performances. Professional fees for sound design, lighting design, wardrobe design, and scenic design have all been upgraded and the results can be seen in the overall quality of our productions. We also continued our strategy of continually upgrading our lighting and sound equipment. We take our roll as one of Carmel's economic generators at The Center for the Performing Arts very seriously. In June of 2018, the Central Indiana Community Foundation and the Indy Fringe organization inquired of ATI if we would be willing to present one of our Broadway productions in the recently renovated District Theatre on Massachusetts Avenue in downtown Indianapolis. In a spirit of cooperation with the arts community in Marion County we accepted their invitation. For almost the entire month of July, our three founders and one other actor presented Forbidden Broadway in the District Theatre. This experience did give us tremendous exposure in an area where ATI is not a household name, downtown Indianapolis. If asked to do this again, I'm sure our answer would be a resounding yes. And finally, as I mentioned in Exhibit A, not one dollar of any Carmel Arts Grant has ever been allocated to increasing staff compensation. However, you will notice in our 2019 operating budget on Exhibit B, the salary of the Executive Director is shown at $60,000. Obviously, there is no guarantee that this will occur. This was done in the hope that the board of Directors will find funding sources to raise overall staff compensation to realistic levels based on existing salary research data. A $30,000 salary is not realistic in today's economic environment.