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HomeMy WebLinkAbout06/28/1994, C-2 - CITY COUNCIL CONSIDERATION AND ADOPTION OF THE BYLAWS OF THE CENTRAL COAST PERFORMING ARTS CENTER COMMISSION �I�BII���ll�llllllf IIInii�II II`IIU MEETING DATE: �r San �BI$p� June 28, 1994 COUNCIL AGENDA REPORT ITEM NUMBER:/) u CI"J From: John Dunn, City Administrative Officer,-, -. Subject: City Council consideration and-adoption of the Bylaws of the Central Coast Performing.Arts Center Commission CAO RECOMMENDATION That the City Council approve the Bylaws of the Central Coast Performing Arts Center Commission. DISCUSSION The City has been involved as a partner in planning and designing a Performing Arts Center since 1985, when the City retained the firm of Hall Goodhue Haisley and Barker for the initial study. In 1986 the City was a party, together with Cal Poly and the Foundation for the Performing Arts, to producing a Memorandum of Understanding. In 1988 the City and our two partners put together the Development Agreement, relating to the planning and construction of the facility. In March of 1993 the Articles of Incorporation of the Central Coast Performing Arts Center Commission were approved. In September of 1993 the Operating Agreement for the Performing Arts Center was approved. Before you for review at this time are the Bylaws of the Commission. As in the previous cases of the above cited documents, the Bylaws were a cooperative work effort of the three parties to the agreements. The Bylaws basic provisions are as follows: Section 2 Purposes sets forth the three purposes of the Commission as follows: A. Advising the California Polytechnic State University and the manager of the Performing Arts Center located on University property on Center operating, scheduling and maintenance policies; B. Reviewing and adopting an annual Performing Arts Center Operating Budget and any amendments thereto; and C. Performing any operating or other functions related to the Center as may be authorized by the University, the City of San Luis Obispo, and the Foundation for the Performing Arts Center. Article IV-Governance in Section 2 Selection of Directors states Directors shall be selected by appointment as follows: t "��fl�►�11�11111���1° IIUIU city of San tins oBIspo COUNCIL AGENDA REPORT Appointing Authority: Directors: Alternates: University President Five Five City of San Luis Obispo Two Two Foundation for the Performing Arts Center Two Two Section 6 -Officers and Their Duties sets forth that the four officers shall be the Chair, Vice Chair, Secretary and Chief Financial Officer and sets forth the duties of these four officers. Article N - Board Actions and Meetings in Section 1 Board Actions states, in part, that "all actions of the Board require the assent of at least five Directors including at lease one assenting vote of a Director or Alternate from each appointing authority. Board action to adopt or amend a budget requires at least seven Directors, including at least one assenting vote of a Director or Alternate from each appointing authority". Section 2 - Board and Committee Meetings sets forth that regular meetings of the Board of Directors shall be held no less than every three months and provides for special meetings and sets forth the location, agenda and noticing requirements of the meetings which "shall be held in compliance with applicable provisions of the California open meeting law". Article V sets forth identification and hold harmless provisions. The overall purpose of the Bylaws is to allow for the formation and functioning of the Central Coast Performing Arts Center Commission, the governing board for the operation of the Performing Arts Center. These Bylaws have been reviewed and approved by Cal Poly State University and the Foundation for the Performing Arts, and are recommended to you by the other two parties to the agreement and City staff. ATTACHMENT 1. Proposed Bylaws JD:mc h/pacbylaw L'-07'92 DISCUSSION DRAFT No. 5 CENTRAL COAST PERFORMING ARTS CENTER COMMISSION BYLA WS Article I Authorizations and Purposes Section 1 Authorizations. The Commission, as a corporation, has been organized under Articles of Incorporation dated March 30, 1993. These Bylaws are authorized under the provisions of Section 5150 of the California Nonprofit Public Benefit Corporation Law, and under Section 2.01.14 of the Operating Agreement for Performing Arts Center, dated September 7, 1993. Section 2 Purposes. The Commission has been organized for the purposes of: a. Advising the California Polytechnic State University and the manager of the Performing Arts Center located on University property on Center operating, scheduling and maintenance policies; b. Reviewing and adopting an annual Performing Arts Center Operating Budget and any amendments thereto; and c. Performing any operating or other functions related to the Center as may be authorized by the University, the City of San Luis Obispo, and the Foundation for the Performing Arts Center. REVIEWED AND APPROVED IN CONCEPT BY COMMISSION 3/17/94 - - DRAFT- - - - DRAFT- - Article II Interpretation Section 1. These Bylaws establish the organizational framework within which the Commission shall function, and they shall be interpreted consistent with the Articles of Incorporation of Central Coast Performing Arts Center Commission, dated March 30, 1993, or as it may be amended from time to time, the Operating Agreement for Performing Arts Center, dated September 7, 1993, and applicable provisions of the California Nonprofit Corporation Law, not otherwise provided for in the Articles of Incorporation, the Operating Agreement, or these Bylaws. Article III Membership Section 1 Members. The Commission shall have no members as that term is defined in section 5056 of the California Nonprofit Corporation Law. Unless otherwise provided herein or in the California Nonprofit Public Benefit Corporation Law, any action which would otherwise require approval by a majority of all members or approval by the members shall require only approval of the Board of Directors. All rights which would otherwise vest in the members shall vest in the Board of Directors. Section 2 Associates. Nothing in this Article III shall be construed as limiting the right of the Commission to refer to persons associated with it, who participate in any activities of the Commission, as "members" even though such persons are not members, as defined in Section 5056 of the California Corporations Code. Such persons shall be deemed to be associated persons with respect to the Corporation as that term is defined in Section 5332 of the California Nonprofit Public Benefit Corporation Law and no such reference shall constitute anyone a member of the Commission. 2 - - DRAFT- - - - DRAFT- - Article IV Governance Section 1 Governing Board. The Commission shall be governed by a board of directors comprised of nine directors. The Board of Directors shall be responsible for the corporate affairs of the Commission and shall carry out the purposes of the Commission. The Board shall, as appropriate, adopt policies and procedures determined necessary to accomplish those affairs and purposes. Section 2 Selection of Directors. Directors shall be selected by appointment as follows: Appointing Authority: Directors: Alternates: University President Five Five City of San Luis Obispo Two Two Foundation for the Performing Arts Center Two Two Section 3 Director Terms. Directors shall be appointed to staggered three-year terms. Prior to the organizational meeting of the Board of Directors, initial directors shall be selected by the appointing authorities. At the organizational meeting, the initial directors shall decide by lot which three among them shall serve a three-year term, which three shall serve a two-year term, and which three shall serve a one-year term. Section 4 Removal of Director. A director may be removed at any time without cause by the appointing authority. 3 - - DRAFT - - - - DRAFT- - Section 5 Board Quorum. A quorum of the Board of Directors shall be five directors or alternates, and at least one director or alternate of each appointing authority. Section 6 Officers and Their Duties. The officers of the Commission shall be the Chair, Vice Chair, Secretary, and Chief Financial Officer. Officers shall be elected by and serve at the pleasure of the Board. The Chair shall preside at meetings of the Board of Directors, and shall have the authority to call and conduct meetings of the Board of Directors, the Executive Committee, if one is established, and to appoint directors and committee chairs to any committees established by the Board. The Chair shall represent the Commission before other boards or entities on matters within the purview of the Commission and upon policy or other matters acted upon by the Board of Directors. The Chair shall consult with the Board of Directors and keep it apprised of significant Commission affairs as appropriate to the circumstances. The Vice Chair shall perform the duties of the Chair in the absence of the Chair, and serve in such capacities as may be requested by the Chair or authorized by the Board. The Secretary shall: take and record accurate minutes of all Board and committee meetings; preserve in a permanent file all minutes, correspondence and other official records of the Commission; and perform other duties authorized by the Board. The Chief Financial Officer shall: have charge of the funds and securities of the Commission, and shall cause them to be deposited as approved by the Board; and see that accurate record is kept of the funds and shall make no less than quarterly reports to the Board of Directors. 4 A,� - - DRAFT- - - - DRAFT- - Section 7 Board Alternates. Alternates may attend Board and committee meetings. Alternates have voting rights in the absence of their appointed director. An alternate may not serve as an officer or perform the duties of an officer for their appointed director. Article IV Board Actions and Meetings Section 1 Board Actions. Except as provided below, all actions of the Board require the assent of at least five directors, including at least one assenting vote of a director or alternate from each appointing authority. Board action to adopt or amend a budget requires at least seven directors, including at least one assenting vote of a director or alternate from each appointing authority. Section 2 Board and Committee Meetings. Regular meetings of the Board of Directors shall be held no less than every three months on a schedule set by the Board. Special meetings may be called by the Chair or by any two directors or their alternates. All Board and committee meetings shall be held in the Center unless the notice of meeting specifies another location which is convenient for and accessible by the public. Each meeting shall include an agenda, the content of which shall be set prior to the meeting, and to the extent practicable, shall be included with the meeting notice. All Board and Board Committee meetings shall be held in compliance with applicable provisions of California open meeting law. 5 a2"7 - - DRAFT= - - - DRAFT- - Article V Indemnification and Hold Harmless Section 1 Indemnification of Coroorate Agents. (a) Any person who was or is a director, officer, employee or other agent of the Commission (collectively "Agents") may be indemnified by the Commission for any claims, demands, causes of action, expenses or liabilities arising out of, or pertaining to, the Agent's service to or on behalf of the Commission to the full extent permitted by California Corporations Code Section 5238. (b) The Commission shall have power to purchase and maintain insurance on behalf of any agent of the Commission against any liability asserted against or incurred by the agent in such capacity or arising out of the agent's status as such whether or not the Commission would have the power to indemnify the agent against such liability under Section 5238 of the Corporations Code; provided, however, that the Commission shall have no power to purchase and maintain such insurance to indemnify any agent of the Commission for a violation of Section 5233 of the Corporations Code. Section 2 Nonnaid Directors; Alleged Failure to Discharge Duties: No Monetary Liability. Except as provided in section 5233 or 5237 of the Corporations Code, there is no monetary liability on the part of, and no cause of action for damages shall arise against, any nonpaid director, including any nonpaid director who is also a nonpaid officer, of the Commission based upon any alleged failure to discharge the person's duties as director or officer if the duties are performed in a manner that meets all of the following criteria: (a) The duties are performed in good faith. (b) The duties are performed in a manner such director believes to be in the best interests of the Commission. (c) . The duties are performed with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. 6 - - DRAFT- - - - DRAFT- - Section 3 Personal Liability of Volunteer Director or Officer for Negligence. (a) Except as provided in subparagraph (c), below, there shall be no personal liability to a third party on the part of a volunteer director (or alternate director) or volunteer executive committee officer of the Commission caused by the director's or officer's negligent act or omission in the performance of that person's duties as a director or officer, if all of the following conditions are met: (i) The act or omission was within the scope of the director's or executive committee officer's duties. (ii) The act or omission was performed in good faith. (iii) The act or omission was not reckless, wanton, intentional, or grossly negligent. (iv) Damages caused by the act or omission are covered pursuant to a liability insurance policy issued to the Commission, either in the form of a general liability policy or a director's and officer's liability policy, or personally to the director or executive committee officer. In the event that the damages are not covered by a liability insurance policy, the volunteer director or volunteer executive committee officer shall not be personally liable for the damages if the Board and the person had made all reasonable efforts in good faith to obtain available liability insurance. (b) For purposes of this section 3, "volunteer" means the rendering of services without compensation. "Compensation" means remuneration whether by the way of salary, fee, or other consideration for services rendered. However, the payment of per diem, mileage, or other reimbursement expenses to a.director or executive committee officer does not affect that person's status as a volunteer within the meaning of this section. (c) This section does not eliminate or limit the liability of a director or officer for any of the following: (i) As provided in section 5233 or 5237 of the Corporations Code; or (ii) In any action or proceeding brought by the California Attorney General. As used in this section, the term "director" includes alternate director. - - DRAFT- - - - DRAFT- - Article VI Bylaws Adoption and Amendment These Bylaws and any amendments thereto shall first be submitted to each appointing authority for review and comment in a timely manner prior to formal consideration and adoption by the Board of Directors at a regular meeting. These Bylaws were reviewed by the President, California Polytechnic State University, the City Council of the City of San Luis Obispo, and the Foundation for the Performing Arts Center, then approved and adopted at the regular meeting of the Commission Board of Directors on 1994. (signature) COMMISSION SECRETARY (j:\propby1w.3rg) 8