resolution adopting and including performance indicators for scc operating agreement 12-03-13.pdf

8/13/2019 Resolution adopting and including performance indicators for SCC Operating Agreement 12-03-13.pdf

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CITY OF CARMEL-BY-THE-SEACouncil Report

December 3, 2013

To: Honorable ayor and Members of the City CouncilFrom: Jason Stilwell, City AdministratorSubject: Sunset Center operating contract performance measures

Recommendation: Consideration of Resolution adopting and including performanceindicators for the Sunset Center Inc. Operating Agreement.

Executive Summary: On July 2, 2013, the City Council adopted Resolution 2013-32 attachedhere as Exhibit A , entering into an agreement with Sunset Center Inc.SCC) for the operation of the Sunset Cultural Center. The City Councilcreated an d hoc committee of the City Council to further review andrevise the performance measures included in Exhibit B of the contractand to return to the City Council before the end of December 2013. Staffand the d hoc committee met with representatives of se and revisedExhibit B which is attached.

Analysis Discussion: During the meeting of July 2, 2013 when the City Council was consideringentering into an agreement for the operation of the Sunset CulturalCenter, the City Council discussed two areas for further review. Theseincluded : 1) liaison between the Sunset Board and the City; and 2)performance measure aligned to the goals and objectives of SCC Inc. andthe City as identified in the operating agreement.LiaisonThere was much discussion during the development of the operatingagreement about ways to increase communication and coordinationbetween SCC Inc. and the City. The final contract includes a number ofprovisions to meet this objective including certain reporting and meetingrequirements.An additional link between the se Board and the City was identified as aneed and various options considered . Since the adoption of theagreement senior City staff has been attending the SCC Board meetings.se has been inviting staff and providing agenda material in advance of

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Previous CouncilAction Decision:

Attachments:

the meeting and sta ff has found that attending the meetings and hearingthe discussion of issues provides an invaluable link between the twoentities. se has indicated it plans to continue this process.Staff does not recommend any City Council action on this issue at thistime as this mode of liaison appears to be meeting the needs of both seand the City and the articulated objectives of increased communicationand coordination.Performance MeasuresPerformance measures were an area of much review during thedevelopment of the operating agreement. Both SCC and the City found itimportant to include performance measures that linked to the goals ofboth organizations and the terms of the operating agreement.Exhibit B of the adopted operating agreement includes certainperformance measures. While Exhibit B was included in the adoptionof the operating agreement on July 2 2013, both SCC and the Cityrecognized a need to further refine the measures.To facilitate the review the City Council created an d ho Committee ofth e City Council comprised of Council members Hillyard and Theis. Thed ho Committee had several meetings and exchanges with se Inc.

about revised performance measures. The result is included as anattachment to this staff report.The revised performance measures include six measures that link to thegoals of the operating agreement while aligning with SCC Inc's balancedscorecard approach. The d ho committee and staff recommend theCity Council adopt the measures to be included as a revised Exhibit B ofthe operating agreement

The City Council entered into an agreement for the operation of theSunset Cultural Center on July 2 2013.

Exhibit A - Resolution 2013-32 approving SCC agreement. Exhibit B Resolution including the performance indicators for the operating

Agreement between the City and the Sunset Center Inc.

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eviewedbyity d m i n i s t r t o r City ttorney Administrative Services D

Asst City Admin D Dir of CP D Dir of Public Svcs DPublic Safety Dir D Library Dir D Other D


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CITY OF CARMEL BY THE-SEACITY COUNCIL

RESOLUTION 2013- 32

EXHIBIT A

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE SEAAUTHORIZING THE CITY ADMINISTRATOR TO ENTER INTO A FACILITY USEAGREEMENT WITH THE SCC, INC. FOR THE OPERATION AND MANAGEMENTFUNCTIONS OF THE SUNSET CULTURAL CENTER.

WHEREAS, CITY owns property and improvements located between San Carlos Streetand Mission Street, and between th and 101b A venues, Carmel-by-the-Sea, California, known asSunset Community and Cultural Center ( Sunset Center ), which contains an auditorium (theTheater ), particularly described in Exhibit A attached hereto and incorporated herein by thisreference; and

WHEREAS, SCC bas been organized as a California non-profit corporation for theexpress purpose ofmanaging and operating Sunset Center; andWHEREAS, in general it is important that the SCC be operated nd managed as a placefor public, cultural activities, entertainment, community, and conference events so SCC serves as

n economic and cultural stimulant for the community; andWHEREAS, Sunset Center is an economic driver bringing visitors to the community forevents and activities thereby fulfilling n important public purpose; andWHEREAS, both parties desire that Sunset Center be operated and managed as a multipurpose venue for public and private, cultural and social events, meetings, entertainment and

community events in accordance with the provisions, terms and conditions of this Agreement,and in a manner consistent with the important public purpose, so that Sunset Center will serve asn economic and cultural stimulant for the community, the people of Carmel and its environs;and

WHEREAS, SCC is uniquely and favorably constituted and situated to supply anddemonstrate the necessary expertise, and operation and management skills, for the purpose ofoperating and managing Sunset Center; and

WHEREAS, SCC, through its volunteer Board of Trustees, has the capacity to provide arich and varied citizen participation to promote the use of Sunset Center in a manner consistentwith the community expectation for a wide range ofcultural and community uses; andWHEREAS, it is the intent of CITY and SCC to assure the most efficient, responsive and

economical operation and management of Sunset Center consistent with the needs of thecommunity; andWHEREAS, City and SCC previously entered into an Agreement dated June 8, 2004

(the First Agreement ) which by its terms concludes on June 30, 2013; nd


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CITY OF CARMEL-BY-THE-SEACITY COUNCIL

RESOLUTION 2013-

Exhibit B

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEAADOPTING REVISED PERFORMANCE MEASURES T BE INCLUDED AS PART

OF THE FACILITY USE AGREEMENT WITH THE SCC INC. FOR THEOPERATION AND MANAGEMENT FUNCTIONS OF THE SUNSET CULTURALCENTER.

WHEREAS, on July 2, 2013 the City Council adopted Resolution No. 2013-32memorializing and approving a Facility Use Agreement with the Sunset Cultural Center ( SCC )Inc. , for the operation and management functions of the Sunset Cultural Center; andWHEREAS, the City Council created an ad-hoc Committee to further review and reviseperformance measures included in said Agreement;WHEREAS, staff was directed to come back before the end of December 2013 withperformance measures to be adopted and included as part of said Agreement; andWHEREAS, over the past six-months SCC staff and the City have established a link to

effectively communicate and thus create the liaison mode that was needed.NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITYOF CARMEL-BY-THE-SEA DOES:1 Adopt the suggested performance indicators for the operating Facility Use Agreementas shown on Attachment A to this Resolution.PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMELBY-THE-SEA this rd ay ofDecember 2013, by the following roll call vote:AYES: COUNCILMEMBERS:NOES: COUNCIL MEMBERS:ABSENT: COUNCIL MEMBERS:ABSTAIN: COUNCIL MEMBERS:

[THIS SPACE INTENTIONALLY LEFT BLANK]


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ATTEST:

aryl A Betancur, CMCDeputy City Clerk

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Exhibit B

SIGNED:

Jason Burnett, M YOR


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S U N S TU \CENT ER TT CHMENT ASunset Cultural Center Inc. P.O. Box 1950 Carmel-by-the-Sea CA93921

Suggested Performance Indicators for Operating Agreement1. Increase total revenue for FY 2013-14 by 3%

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[email protected]

Financial performance is a key indicator of an organization's solvency and futuresustainability. Sunset Cultural Center, Inc. has achieved an appropriate balanceof contributed and earned income and minimizes its risk position throughdiversified income sources such as ticket sales and rental fees . Expenses havebeen well managed staff costs are reasonable given budget size and basicfacility costs are stable. While both market size and ongoing economic conditionswill impede any goals for sizeable growth, a 3% increase in overall revenue is atarget that is both incentivizing and achievable for the Center, and will ultimatelyillustrate continued effort toward expanding the Center's reach and impactthroughout the community.

2. Grow total annual attendance for FY 2013-14 by 2%Attendance goals are closely tied to revenue goals; however, higher revenuegains can be achieved through a variety of income sources wh ile attendance ismore closely related to utilization . While space utilization increases , individualattendance may or may not be directly proportional. Therefore, SCC proposes anoverall individual attendance increase of 2%, which is one percent less than therevenue and utilization goals.

3. Grow theater utilization for FY 2013-14 by 3%a. Support the efforts of the Hospitality Improvement DistrictVenue utilization is often the number one concern for facil ity managers andstakeholders. The Sunset Center is located in a strong but competit ive market forarts and entertainment, which is complicated by the combination of full-time andseasonal residents, plus tourists. Overall, the Sunset Center has facilities that arefunctiona l, complimentary, well-located, authentic and in very good condition ,with a steady supply of users for both the theater and the North Wing meetingrooms. A goal of a 3% increase in overall theater utilization is a reasonable targetgiven the market size and competition .Efforts to assist the HID in its marketing of meeting space to the group meetingsmarket will greatly aid in increased North Wing meeting room util ization as well.

4. Aid in the endeavor to present Carmel as an intellectual destination byhosting at least one new eventConsistent with SCC's mission to de liver diverse, high-quality arts programming ,sec recognize its role in contributing to the intellectual stimulation of residentsand visitors by offering at least one program each season to that end. Examplescould include lecture events, educational presentations, or simi la r.


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5 Conduct an annual client satisfaction survey with a goal of achieving 90or better overall satisfaction ratingsIt goes without saying that satisfied customers are the ultimate key to anyorganization's success. To that end, SCC will continue to strive for overallapproval ratings of over 90 , and these ratings will be measured annuallythrough a comprehensive customer survey process.

6 Evaluate and improve the theater concessions operation in accordancewith the 2013 SCC Market Study findingsa Issue a Request for Proposals for the Center's F&B needs

SCC's customer survey conducted in March 2013 indicated that excellentratings were achieved for buying tickets, location, access to parking, comfort,amenities and customer service, but lower ratings were received for ticket pricesand concessions. User groups also logged concerns about the quality ofproducts and the level of service offered at the theater concession stand.Therefore, SCC will commit to further study and improvement of the issue,working cooperatively throughout the process with the existing concessionsprovider and long-time Sunset Center support group The Friends of SunsetFoundation.

All of the above suggested performance indicators are based on a continuance ofthe prevailing economic conditions, and are subject to adjustment or abatement ifcured within the following fiscal year or because of force majeure, including anylabor dispute, death, incapacity of any performing artist or any other disruptiveevent beyond control of sec.

resolution adopting and including performance indicators for scc operating agreement 12-03-13.pdf

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