HomeMy WebLinkAboutReorganization of Cultural and Event Services Division and M Council/Agency Meeting Held:
Deferred/Continued to:
45 amvmz)
)`Approved.4 ElCondltlonall Approved ❑ Denied City Clerk's Signature Y
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Council Meeting Date: May 17, 1999 Department ID Number: CS99-019
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION -" �
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SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
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SUBMITTED BY: RAY SILVER, City Administrator
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PREPARED BY: RON HAGAN, Director, Community Sit
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SUBJECT: APPROVE REORGANIZATION OF CULTURAL AND EVENT SERVICES
DIVISION AND MODIFIED STAFFING STRUCTURE FOR THE
HUNTINGTON BEACH ART CENTER
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments)
Statement of Issue: City Council has directed the Community Services Department to
administer the Huntington Beach Art Center so that revenue in the Art Fund matches
expenses, and to accomplish this the department is requesting approval of a reorganization
plan to revise the Cultural and Event Services Division.
Funding Source: Art Fund
Recommended Action: Motion to:
1. Approve the reorganization plan of the Cultural and Event Services Division as presented
herein, and direct staff to implement the reorganization; and
2. Direct staff to implement a process that will
a) involve all of the cultural arts groups associated with the Art Center in determining the
future direction of the Art Center; and
b) develop a strategic plan which defines the mission, required support staff, and
revenue streams necessary for the art center program, and return to Council by
September 1999. l r)c IL) t 19 R )ona- tE�am aL-le^),0F 0&,cMai,7- fh�>< A ,e-, /s �
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Alternative Action(sf Appropriate an additional $40,000 from the General Fund to the Art
Fund to maintain the current staffing levels at the Huntington Beach Art Center.
Analysis: When City Council adopted the FY 98/99 budget in September, 1999, staff was
directed to review the Art Center operations and return to Council mid-year if revenues were
not going to match expenses. As Council is aware, the cost to put on the Art Center's major
fund-raiser was greater than anticipated and approximately $10,000 of net revenue was
realized to the Art Fund instead of the $50,000 that was budgeted. Community Services staff
REQUEST FOR COUNCIL ACTION
MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: CS99-019
has reduced expenses to the extent possible; however, without a reorganization of the
staffing structure to operate the center, the Art Fund will again be approximately $40,000 in
deficit this year. The current total deficit in the Art Fund is approximately $306,000 of which
$250,000 is required by City Council to repay the Park Fund for completion of the Art Center
building. The remaining $56,000 is the result of two years of operating deficits where the
cost to put on the major fund-raising events has exceeded the budget.
The Community Services Department is proposing that the city deal with the current year's
budget by implementing a reorganization plan that would reduce the Art Center budget by not
filling the vacancy created by the transfer of the current Cultural Services Supervisor position
assigned to the Art Center to the Specific Events Operation. Under the reorganization, the
Cultural and Event Services Division Manager and Administrative Secretary would assume
the role of overseeing the day-today operations of the Art Center until such time as the
funding is available to fill the Cultural Services Supervisor position. The center would
continue to have a full-time Exhibition/Performance Coordinator and a Cultural Services Aide.
The budget would include recurrent staff for fund development, classes and children's art
camp, volunteer coordinator, preparator, maintenance, gallery aide, and security.
The Art Center has had two support groups — the Huntington Beach Art Center Foundation
and the Huntington Beach Art Center Board of Directors. These two nonprofit, 501(c)(3)
groups have worked to raise funds to provide for programming and activities at the Art
Center. All program and operational decisions remain the responsibility of staff. The Cultural
and Event Services Division will continue to administer the programs and activities of the
Allied Arts Board, Historic Resources Board, Huntington Beach Historical Society, Newland
Museum, Concerts in the Park, film permits, and special projects such as the Save the Birds
project at the civic center.
This proposed reorganization would secure the continued operation of the Art Center and the
other citywide cultural services that are currently being provided while at the same time
balance the revenue and expenses for 98/99. It is staffs plan to meet with all of the groups
associated with the Cultural and Event Services Division to develop a strategic plan to
address funding for the arts and return with this strategic plan by September 1999. The city
did complete a Cultural Master Plan in 1994, which contained several recommendations
regarding the Cultural and Event Services Division. Those recommendations will be con-
sidered in developing the strategic plan with the associated groups.
In summary, if it is Council's desire to match revenue with expenses for FY98/99, it will
require a restructuring of the Art Center staffing and the division manager to do double duty,
i.e., operate the Cultural and Event Services Division and oversee the operations of the
Huntington Beach Art Center on a temporary basis. Attachment 1 is a proposed organization
chart for the Cultural and Event Services Division and a proposed budget for the remainder
of 98/99. Attachment 2 is the proposed budget for 99/00 which reduces the Art Center
operation from $350,000 per year to $280,000 and is not dependent upon revenue from the
Reorganization of Cult.Serv. Divis.doc -2- 05/07/99 10:57 AM
REQUEST FOR COUNCIL ACTION
MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: CS99-019
GTE Summer Equestrian Classic fund-raiser. If through the strategic plan and/or the
success of either the GTE event or the fund-raising efforts of the support groups funding is
secured for additional positions at the Art Center, staff will return with a recommendation to
allocate such funding for those positions.
At the meeting of the Allied Arts Board on May 4, 1999, the board approved the
reorganization plan and the strategic plan process, and recommended that City Council
approve the staff recommendations. Attachment 3 is the minutes of the Allied Arts Board
meeting.
Environmental Status: N/A
Attachment(s):
City Clerk's
Page Number No. Description
1 Organization Chart for Cultural, Historical & Event Services Division
2 Art Center Revenue/Expense Forecast
3 Allied Arts Board Minutes
RCA Author: RH:cr
Reorganization of Cult.Serv. Divis.doc 3- 05/07/99 10:57 AM
ATTACHMENT # 1
Cultural, Historic & Event Services Division
Huntington Beach Art Center
Cultural&Event Services
Division Manager
Community Services Dept Management Team Member
Division Secretary Allied Arts Board
Advisory to the Council
Recurrent Clerical
Art Center
Huntington Beach Art Center Adhoc Committees
Foundation Board of Directors Bandstand,SAVE THE BIRDS,90th Birthday
501(C)3 GTE Summer Classic
Established 1989
Com m ittees
Founders, Patrons,538 Main
Associates,Club 538
Committee Public Art Committee
Art Center Membership Advisory
Annual Memberships
Pending Council Approval
Public Art
Coordinator
Recurrent
Historic Resources Board Alliance
Advisory to City Council VdMeer Support Group of the At Center
Board of Trustees Museum Aides
Newland House Museum
Exhibition/Performance Classes/Children Art Camp Cultural Services Supervisor Special Projects/Facility Manager Fund Development
Coordinator Coordinator Vacant Cultural Services Aide I Coordinator
E)dsting Benefited City position Recurrent Benefited City Employee Bandstend;Concerts,90th Birthday,Summer Classic Recurrent
Ebsting Benefited Employee
Volunteer Gift Shop Guild Installations/AV Gallery/Event/Maintenance Community Meetings
Coordinator Volunteers Ep
paratorlAV Coordinator Aides After Hour Security
Comrt'Rees,Alliance,G it Shop Guild Recurrent Recurrent Recurrent=500 hours per year
Recurrent Charged to CSD rentals acet
ATTACHMENT #2
LOCAL ART AGENCY
HUNTINGTON BEACH ART CENTER
INCOME FORECAST
97/98 Actual 99/00 Notes
Budget Budget
Art Center Income
Art Center Rental 5 000 6 350 6,300
Fund-raising Equestrian Event 100 000 14 000 0
Cultural Enrichment Fund- • 81,000 81,000 125,000
Transfer
Admissions 15,000 15,000 15,000
Classes/Art Camp 40,000 43 8S0 44,000
Lectures 0 0 S 000
Art Tours 5,000 3 200 3 200
Art Parties 0 0 5 000
Grants 10,000 11,000 10,000 Corporate
Store 20,000 36 000 20 000
Membership/Donors 3,000 4 000 8 500
Masked Ball 15 000 12 S00 12,000
Event Fees 30,000 32 550 0
Film Permit Fees 15,000 14,200 21,000
Specific Events Permit Fees 15 000 15 000 0
Community Meeting Space Fees 0 0-1 5 000
TOTAL $354,000 288,,_650 280 000
97/98 97/98 Actual 99/00 Notes
Budget Budget
Art Center Expenses
F.T. Staff 136 308 $145 694 $97 694
Maintenance & Operation 80,000 85 400 82 000
Program 1031140 103 249 92 806
Art Center Store 11 500 7 947 5,000
Membership Support 3 187 2 703 2 500
Total 334,135 344,993 $280,000
H. B. Art Foundation Pro ram Endowment
GTE Summer Classic $104 000 $50 000
Patrons 5 000
Associates 10,000
Club 538 Gourmet Sodety $6 000 9 000
Total $110,0001 $74,000
HBAC Board of Directors (Program Support)
[Fund-raising 1 1 $40,000 Unknown
Remaining Naming Opportunities
Multi Purpose Room 65 000
Studio 50 000
Bookstore 40 000
Total $155,000
ATTACHMENT #3
%- Allied Arbs Board
CITY OF HUNTINGTON BEACH
LAD
2000 MAIN STREET HUNTINGTON BEACH,CALIFORNIA 92648 TEL: 1714) 536-5486
EXCERPT OF MAY 4, 1999 MINUTES OF THE ALLIED ARTS BOARD
Staff presented the reorganization of the Cultural and Event Services
Division and the Huntington Beach Art Center. Included in the discussion
was the temporary relocation of the Cultural Services Manager and
Administrative Secretary to the Art Center. Staff also discussed the
process that will be taken to develop a plan to address the future
program direction of the center and the current deficit. There was a
lengthy discussion following staff's presentation. Concerns were raised
about the deficit and possible redirection of the programming. The board
felt strongly that the mission/vision of the center should remain the same
while the programming was to be broadened to appeal to a larger
audience, hence higher revenues. The board understood the financial
situation of the center and Council's direction at this time.
MOTION.: MOVED BY DEWITT, AND SECONDED BY GELLER, THE ALLIED ARTS
BOARD APPROVES THE REORGANIZATION PLAN OF THE CULTURAL AND
EVENT SERVICES DIVISION AS PRESENTED HEREIN, AND DIRECTS STAFF TO
IMPLEMENT THE REORGANIZATION IMMEDIATELY. IN ADDITION, STAFF IS
DIRECTED TO IMPLEMENT A PROCESS THAT WILL:
A) INVOLVE ALL OF THE CULTURAL ARTS GROUPS ASSOCIATED
WITH THE ART CENTER IN DETERMINING THE FUTURE PROGRAM
DIRECTION OF THE ART CENTER; AND
B) DEVELOP A STRATEGIC PLAN FOR ART CENTER FUNDING AND
TO ADDRESS THE CURRENT DEFICIT, AND RETURN TO COUNCIL
IN SEPTEMBER 1999.
AYES: CASEY; DE WITT; ENG; GELLER; GRAFF-FALZON; SPENCER; STIP
NOES: HUGHES
ABSENT: HANKIN
The motion was amended and approved to include that the relocation
should be temporary.
HELEN SPENCER, Chair
i
RCA ROUTING SHEET
INITIATING DEPARTMENT: COMMUNITY SERVICES
SUBJECT: APPROVE REORGANIZATION OF CULTURAL AND
EVENT SERVICES DIVISION AND THE MODIFIED
STAFFING STRUCTURE FOR THE HUNTINGTON BEACH
ART CENTER
COUNCIL MEETING DATE: May 17, 1999
RCA ATTACHMENTS .......SAUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement Unbud et, over $5,000 Not Applicable
Bonds If applicable) Not Applicable
Staff Report If applicable) Not Applicable
Commission, Board or Committee Report If applicable) Attached
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
.
REVIEWED RETURNED: FOR: EQ
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
[City Clerk
EXPLANATION FOR RETURN OF ITEM
Only)(Below Space For City Clerk's Use
RCA Author:
LJ CITY OF HUNTINGTON (BEACH
2000 MAIN STREET CALIFORNIA 92648
COMMUNITY SERVICES DEPARTMENT
May 4, 1 999 (714) 536-5486
Shelley M. Liberto, Esq.
3 Hutton Centre, #900 ' -a4i_IVED FROM 9�_
Santa Ana CA 92707 A,D MADE APART OF THERE OR Ar TH R9
Cii NC!L"MEETING OF
OFFICE OF THE CITY CLERK
Dear Shelley: 06MNIE BROCKWAY,CITY CLERK
Re: Huntington Beach Art Center Pvbl;c
With all of the recent publicity regarding the reorganization of the Community
Services Department and the Huntington Beach Art Center, I felt it necessary to
put in writing the relationship between the City of Huntington Beach and your
nonprofit corporation. This letter will serve as acknowledgement on the part of
the city that the Huntington Beach Art Center nonprofit public benefit corpora-
tion is not now nor has it ever been responsible for the finances of the
Huntington Beach Art Center located at 438 Main Street. The Huntington
Beach Art Center nonprofit public benefit corporation has no financial liability
for any city deficit in the Huntington Beach Art Center Fund either known or un-
known with regard to its participation as a volunteer citizens group supporting
the Huntington Beach Art Center.
The city welcomes the Huntington Beach Art Center nonprofit corporation to be
a part of providing significant arts programming to the Orange County region.
Any financial contribution for programming is at the sole discretion of the .
Huntington Beach Art Center nonprofit public benefit corporation for which the
City of Huntington Beach has no financial responsibility.
I hope this letter allays any concern regarding your nonprofit corporation's fi-
nancial responsibility to the city.
Ve ly y rs,
N H AN
Director
Community Services
RH:cr
cc: Michael Mudd; Naida Osline
09
Council/Agency Meeting Held:
Deferred/Continued to:
®(Approved ❑ Conditionally Approved ❑ Denied City Clerk's Si nature
lj�
Council Meeting Date: March 2, 1998 Department ID Number. CS 98-006
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION RECEIVED FROM
AND MADE A PART OF THE-RECORD T THE
COUNCIL MEETING OF ��7"99
OFFICE OF THE CITY CLERK
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
sRocKwAY,CITY CLERK
SUBMITTED BY: RAY SILVER, Acting City AdministratoroW
PREPARED BY: RON HAGAN, Director, Community Service
SUBJECT: APPROVE AGREEMENT WITH HUNTINGTON BEACH ART
CENTER FOUNDATION
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s-
Statement of Issue: Should the city enter into an agreement with the Huntington Beach Art
„enter Foundation to return it to its original purpose as the capital campaign and
endowment fund-raising arm of the Huntington Beach Art Center, and allowing the
Huntington Beach Art Center to establish new support groups for fund-raising for ongoing
programs and activities?
Funding Source: Revenue to Art Center Fund
Recommended Action:
1. Motion to approve agreement with the Huntington Beach Art Center Foundation, and
authorize the Mayor and City Clerk to execute same;
i..
2. Motion to direct Community Services Department, Cultural and Event Services Division
staff to work toward the following goals for the Huntington Beach Art Center for 1998:
a) Institute new support groups and guilds to be responsible for fund-raising for
ongoing programs and activities;
b) Expand programs and center activities to the greatest extent possible within
the resources available;
c) Emphasize customer relations and community marketing of the Huntington
Beach Art Center,
d) Provide oversight and coordination of the city's specific events process;
e) Manage the Huntington Beach Art Center so that revenue matches
expenditures while maintaining funding level to sustain current level of
programming; and
r
REQUEST FOR COUNCIL ACTION
VIEETING DATE: March 2, 1998 DEPARTMENT ID NUMBER: CS 98-006
The Community Services Department goals for the Art Center for 1998 are:
a) Maintain the current level of funding for Art Center programming.
b) Institute new support groups and guilds to be responsible for fund-raising for ongoing
programs and activities including the Art Center store and membership.
c) Expand programs and center activities to the greatest extent possible within the
resources available;
d) Emphasize customer relations and community marketing of the Huntington Beach Art
Center;
e) Manage the Huntington Beach Art Center so that revenue matches expenditures
while maintaining the current level of city support.
The center is currently an accepted art institution with critical acclaim and success. The
children's art camps, art classes workshops, performance art, and exhibitions all have come
together to provide the art center with not only a local, but also a regional audience, thereby
helping support the city's economic development within the tourist industry. Staff is
recommending that Council approve the agreement with the Huntington Beach Art Center
Foundation, and the direction presented herein for the Art Center. This recommendation is
in compliance with General Plan 1-HCR8, Interagency Participation and Coordination.
Environmental Status: Not applicable.
Attachment(s):
City Clerk's
Page Number No. Description
1. Agreement
RCA Author. RH:cr
0029969.01 -3- 02/18/98 4:15 Ph4
1
- 4 NOW, THEREFORE, the parties hereto agree as follows:
1. TERM
This Agreement shall continue in effect until terminated by either party. The City
or the Foundation may terminate this Agreement upon one year's advance written notice to the
other party.
2. EFFECTIVE DATE
This agreement shall become effective upon approval and adoption by the City
Council of the City.
3. RESPONSIBILITIES OF THE FOUNDATION
The Foundation is organized under the nonprofit corporation laws of the State of
California for the purpose of.
A. Developing public knowledge and understanding of the Center.
B. Encouraging a spirit of cooperation between City and the community for
the Center.
C. Planning and implementing the Center's capital campaign, program
endowment and other activities as set forth by its bylaws.
The Foundation will conduct business of its choice to raise funds for future capital
acquisition, endowment fund, and other activities. The Foundation shall be responsible for its
own operations and for adhering to its adopted bylaws. The Foundation has the sole right to
expend its fund-raising efforts for capital acquisitions, endowment fund, or other activities upon
the majority vote of its Board of Directors according to its bylaws.
R1 S 9S-OOHS
Rcv.2/1 S/9S
RECEIVED FROM CS/�
AND MADE A PART OF THE RECORD P,
COUNCIL MEETING OF 5--1?_
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY,CITY CLERK
Commun 'Ity
Department
Cultural , Historic, and Events
Services Division
Huntington Beach Art Center
Current Situation :
FINANCES, PROGRAM & STAFFING
• Art Center Deficit - $3101 000
— Expenses and revenues do not match.
— Construction loan remaining.
• Art Center Program
— Program assessment recommended.
• Program Expansion at Pier Plaza and Support
to the Specific Events Committee
— Additional staff support required.
Cultural, Historic & Event Services Division
Huntington Beach Art Center
Cultural&Event Services
Division Manager
Communily Servlees Dept Management Team Merrber
Division Secretary Allied Arts Board
Advisory to the Council
Recurrent Clerical
Art Center
Huntington Beach Art Center Adhoc Committees
Foundation Board of Directors Bandstand,SAVE THE BIRDS,80th Birthday
S01(C)3 GTE Summer Classic
Established 7888
Committees
Founders,Patrons,538 Main
Associates,Club 538
Committee Public Art Committee
Art Center Membership Ad'Asory
Annual Mernberships Pending Council Approval
Public Art
Coordinator
Recurrent
Historic Resources Board Alliance
Advlsory to City Council Volunteer Support Group of the A4 Center
Board of Trustees Museum Aides
Newland House Museum
Exhibition/Performance Classes/Children Art Camp Cultural Services Supervisor Special Projects/Facility Manager Fund Development
Coordinator Coordinator Vacant Cultural Services Aide I Coordinator
Usting Benefied City Position Recurrent Benefied City Employee Bandstand;Concerts,OOUt BGthday,Summer Classic Recurrent
Usting Benefited Employee
Volunteer Gift Shop Guild Installations/AV Gallery/Event/Maintenance Community Meetings
Coordinator Volunteers Preparator/AV Coordinator Aides After Hour Security
Comrtittass,Alliance,dIl Shop Guild Recurrent Recurrent Recurrent•500 hours per year
cu Rerrent Charged to CSD rentals acct
Cultural , Historic & Event
Services Division
PHASE 1 : REORGANIZATION PLAN.
• Staff met with Huntington Beach Art Center
Foundation on April 28 , 1999, & presented
division reorganization plan .
• Staff met--with Allied. Arts Board on May 4,
1999, presented . plan & received approval .
- Board recommends temporary move for Division Administration.
• Division staff has been informed of pending
reorganization scheduled for summer 1999.
Cultural , Historic & Event
Services Division
PHASE 2: PROGRAM ASSESSMENT
• Staff will mail questionnaire to City Council, Art
Center Foundation, Allied Arts Board, Donor Base,
and membership groups to assess and define the
mission, strengths and weaknesses of the Art
Center program.
• Staff will hold a meeting in July with all local art
groups to-discuss the reorganization and future
plans.
• Staff will present findings and conduct study
sessions with:
— Allied Arts Board - July 1999
— Art Center Foundation Board of Directors- July 1999
— City Council - September 1999
Cultural , Historic & Event
Services Division
PHASE 3: HBAC FUNDING PLAN
• Staff will develop a 1999/2000 budget of
$2801000 - a decrease from current budget of
$354, 000. Expenses will match income.
• Staff will review existing deficit and make
recommendations for its elimination .
• Both the budget and deficit report will be
submitted to City Council by September,
1999.
Cultural , Historic & Event
Services Division
STAFF RECOMMENDATION
• Approve the reorganization plan
• Direct staff to :
— involve groups in future direction
— Return to council in Sept. 1999 with :
• Results of the assessment
• 1999/2000 art center budget
• Plan to -deal with the art fund deficit