HomeMy WebLinkAbout2009-01-27 - AGENDA REPORTS - MOU SC PERFORMING ARTS CENTER (2)Agenda Item: / q
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Rick Gould
DATE: January 27, 2009
SUBJECT: SANTA CLARITA PERFORMING ARTS CENTER AT COLLEGE
OF THE CANYONS MEMORANDUM OF UNDERSTANING
(MOU)
DEPARTMENT: Parks, Recreation, and Community Services
RECOMMENDED ACTION
City Council approve the dissolution of the Memorandum of Understanding (MOU) with the
Santa Clarita Community College District regarding the Santa Clarita Performing Arts Center at
College of the Canyons.
BACKGROUND
In 2000, the City of Santa Clarita and the Santa Clarita Community College District signed an
MOU for what became the Santa Clarita Performing Arts Center at the College of the Canyons
(PAC). The MOU was signed prior to the opening of the PAC, and it recognized the City's
contribution of $2.4 million toward the construction of the PAC. Among other items, the MOU
outlined availability of the PAC for City and community use.
The MOU was intended to be updated periodically as part of the ongoing partnership with the
College. Recently, staff met with representatives of the College regarding the MOU, and during
this update process, a major issue has caused the City and College to reevaluate the best course of
action for the future. The issue is the dates that are set aside for what are labeled as City Users,
and the resulting impact this usage has caused to the venue.
City Users are better described as Community Users, and are local nonprofit organizations,
usually performing arts groups. Under the MOU, these groups are guaranteed 32 percent of the
weekend dates at the PAC. This allocation worked well for the first five seasons, but since the
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PAC opened, the facility was used almost every weekend, and the need for an ongoing
maintenance and equipment replacement fund became a priority. Since the Community Users
are guaranteed dates and are given priority scheduling, the College is unable to rent the facility to
for-profit groups on a regular basis, which is the normal practice to create the revenue that can be
allocated to the type of fund that is needed. Essentially, the College is substantially subsidizing
the community groups by providing a state-of-the-art facility, without having the income source
from for-profit rentals that similar performing arts centers utilize to cover the critical replacement
and maintenance costs.
Working together, both College staff and City staff have concluded that the best way to resolve
this issue is for the City and the College to discontinue the MOU. The organizations that are
currently labeled City Users will become Community Users under the PAC operating procedures,
and contract directly with PAC staff to schedule events. This approach achieves the immediate
need of creating a maintenance and replacement fund, by giving flexibility to the College to
schedule performances and better offset the costs of running the PAC facility. This funding
would be achieved through rental of the venue to professional, for-profit groups at a significantly
higher rate than the nonprofit rate, and by increasing opportunities to raise revenue through ticket
sales and sponsorships.
Dissolution of the MOU will not result in higher fees to the Community Users, as the rental costs
are controlled by the State of California Civic Center Act, which sets fees for nonprofit groups at
the direct cost of operating the facility. The negative result of dissolution of the MOU is that
current Community Users will not be guaranteed the same number of dates they currently utilize.
However, PAC staff will endeavor to accommodate these groups as part of their scheduling
process.
If this item is approved by City Council, scheduling for the 2009-10 PAC season will be handled
the same as in previous years. The only change for this season will be that Community Users
will work directly with PAC staff to schedule dates. In the 2010-11 PAC season, the changes
described above will take full affect, and the Community Users will no longer receive priority
booking and will continue to deal directly with the College to acquire performance dates.
Under the current MOU with the College, the City of Santa Clarita pays a portion of the Theater
Manager's salary. With the discontinuation of the MOU, the $20,000 paid annually to the
College also will be discontinued. The "City of Santa Clarita Presents" grant program which
supports Community Users in utilizing the PAC will continue and will be unaffected by this
decision. This program provides $50,000 per year to assist local nonprofits utilize the PAC for
their public performances, by underwriting some of the facilities' rental costs.
Staff believes that dissolving the MOU will allow the College to apply models that have worked
successfully in other communities, resulting in the creation of a maintenance and equipment
replacement fund that will help the PAC to continue to provide live entertainment to Santa
Clarita's citizens. While this recommendation does discontinue the MOU with the College, City
staff's expectation is that the City and the College will continue to identify opportunities to work
together at the PAC, and on other arts and cultural events and programs in the future. Staff
believes this action will allow the College to be successful in continuing to offer the best
experience possible for groups that rent the facility, and for the tens of thousands of community
members that attend performances at the Center.
ALTERNATIVE ACTIONS
Other actions as determined by the City Council.
FISCAL IMPACT
There is no fiscal impact for Fiscal Year 2008-09, however this action will see a savings of
$20,000 annually to the City's General Fund beginning in Fiscal Year 2009-10.
ATTACHMENTS
Memorandum of Understanding
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CENTER FOR THE PERFOR?<il.,N`G ARTS
1 UNIORA DUNI OF UNDERSTAINDfN, G
This Mernorandum of Understanding (MOM is made and entered into the V- day
of December, 1999, b} end berwcen the City of Santa Clarita (hereinafter refe;;ed to as
"City") and the Santa Chau Community College District (hereinafter referred to as
"UisLTict ').
WITI ESSETH:
WITEREAS, the District has received State approval to desigt, and construct a
Cc:;iter for the Performing Arts (CPA) at College of the, Canyons for tnsuz ictior. l
purposes; and
WHEREAS, t.hc City is desirous of expanding the seating capacity of the
Disuict's CPA to provide a_n auts venue for the community to partially nncet its master
Plan objectives;
NIOW, THEREFORE, in consideration of the mutual promises and conditions of
the paraes herein, as hereinafter set forth, the parties agree as follows.
Seating Capacity
T ie general seating capacity o[450 scats wtli be expanded tip to 950 setts
by constructing a niezcanrne as well as add;ng lower level seating as
practicable within the building envelope.
The actual number of seats wi11 vary somewhat based on the type of
pen fonimrice conducted as well as the design features so as not to
compromise the quality of acoustics, lighting, and stage vision for
cxaniptc
2. Location
The CPA is iincnded to be located along Rockwell Canyon Road utilizing
the existing slope east of the S Building. The District reserves the riga to
alter the location of the CPA to another equally vis;ble and accessible
place on or adjacent to its College of the Canyons carnpus
3. Public Art Sculuture
The City has interest in secunng finding for the desigii and constriction
of a public alt sculpt -re. "File District reserves the nght to approve of the
sculpture's design acid location.
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Availability t>f the CFA
When initially cons'trzicted, the CPA will be available for City and
community use approximately 40% of,,veckend tune. Subsequently, as the
District's arts programs grow, the availability is expected to drop to
approxitnaiely 32% on weekends. Availability of the iacility for City and
community use duruig the wcck will be greater. Joint uses between the
District and local arts the
are highly desirable because synergy is
created, usage is consen•ed, and learning opportunities for District
students abound by working Nvith local ans professionals.
Governance
The Distnct shall oversee operation at the CPA. An operations advisory
committee comprised of representatives of the District and City shall be
formed. This advisory comrrtitiee shall recommend written criteria
regarding the use, scheduling, and operation of the facility to ensure fau
and equitable use, cost-effectiveness, and high caliber performances. The
College's instructional needs will he served first. This advisory
committee shai] propose an annual budget and calendar of eN ents to
promote advance planning and accountability
6. Specifications
A Performing Alis Design Advisory Comnvttee shall be established to
recommend design features to the Disrict. The Cominurtce shall be
comprised of representatives of the District, City, and arts commuruty it
shall be chaired by the District's Vice President of Lnsiructicnal Scr-,ices.
A "state-of-the-art" facility «•ill be designed and constnicted subject to
State requirements and funding.
Naming the Facility
The facility shall be named the "Center for Per -forming Arts." Pursuant to
the District's'policy on naming facilities, the Board of Trustees reserves
the nght to name the facility if a benefactor makes a significant nificant "no stings
attached" donation to the District Fwthermore, the District reserves the
right to name areas (rooms, spaces) of the CPA after benefactors.
In recognition and appreciation of the City's contribution (see item 10),
the District shall prominently display the City of Santa Clarita in all
advertisements and publications as well as the facility dedication plaque
Financing Operations
The District will pay for general cleaning, upkeep, alid maintenance for its
programs including those in partnership with the College.
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Other users of the facility :will pay for the operational costs (which
include, but are not limited to, custodial cleaning to dismct standards,
custodialImaintenance supplies, utilities, secunty, ticket takers, ushers,
audio 'visual techLicia ns, advertising, repairs related to damage during use,
etc.) by a combination of the following options clean and maintain tli,
facihty associated With their performances to District standards, pay user
Fc --s, increase ticket pnces to offset costs; obtain grants and donations,
hold fundraiser events to defray costs; and/or sell concessions.
With respect to concessions, the District shall approve all concessions sold
and vendors used to honor agcemcnts the District has with existing
vendors and to ensure protection of the District from product liability
The operations advisory committee wiD provide input regarding financing
the operations which shall be subject to District approval. All users will
provide general liability, property, and Workers' Compensation insurance
coverage via a certificate of insurance naming the Distnet as an additional
insured.
After the first two years of operation, the District and City Neill devise a
mechanism of establishing and financing an equipment replacemeut fund
from the proceeds of the Center to ensure timely repair and replacement of
fixtures and equipment.
Estimated Costs
Working Draws i ngs
S 663,440
Construction
10,142,861
Equipment
1,407,741
Land Value
816,750
Parking
1,200,000
$14,230,792* 85 6%
Additional Seating
2,300,000 13.8%
Public Art Sculpture
100,000 6%
$16,630,792* 100%
*Does not include maintenance an., operations or landscaping costs
Note. The District has appiied for additional State funding for project
management
10. City Contnbunon
The City will contribute $2 4 million ($2 3 million for seating and y.l
million for a public art sculpture) This funding may be contributed over
the next four years
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The intent of the parties is to enjoy a long -terns relationship. The parties
shall review the MOO at least annually to ensure it is updated as the
relationsh p evolves and operational and financing issucs are determined
12. Inderrunifcation and Hold I-Iarmle_ss
The City shall indenutif , and hold harmless the District from all acts or
omission, negligent or willful, of its itself and its agents, officers and
employees which cause damage to the property or person of any third
party. This obligation includes but is not linnited to the payment of all
judgments or settlements and all defense costs, including attorneys' fees
The District shall indemnify and hold hw-niless the City from all acts or
omission, negligent or willful, of its itself and its agents, officers and
employees which cause damage to the property or person of any third
party. This obligation includes but is not limited to the payment of all
judgrnenis or settlements and all defense costs, including attorneys' fees.
13. Entire Aereement
This represents the entire understandings of the parties. Any amendments
shall be. written and agreed to by both parties as evidenced by their
authorized signatures.-
TN WTTNTSS THEREOF, the parties agree to the provisions of this 1v10U by having
their authorized agents sign below:
City of Sante Clarita
City Manager
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Approved As To Form
Santa Clanta Community College Distnet
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Dr. ante G. Vail Hook
Supenntendcnt-President
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Date
Distri t
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ATTEST:
� C 11 ti' CLERK r