HomeMy WebLinkAbout05/21/2002, C3 - APPROVAL OF AMENDMENTS TO THE OPERATING AGREMENT FOR THE CHRISTOPHER COHAN CENTER OF THE PERFORMING council 2
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C I TY OF S AN L U IS O B 1 S P 0
FROM: Wendy George,Assistant City Administrative Officer 1111T
SUBJECT: APPROVAL OF AMENDMENTS TO THE OPERATING AGREMENT FOR
THE CHRISTOPHER COHAN CENTER OF THE PERFORMING ARTS
CENTER(PAC)
CAO RECOMMENDATION
Approve amendments to the Operating Agreement, formalizing long-term funding
recommendations developed by an ad hoc task force of representatives from the City, California
Polytechnic University (Cal Poly) and the Foundation for the Performing Arts Center(FPAC).
DISCUSSION
Background
In 1986, the City, FPAC and Cal Poly formed a partnership to create and operate a state-of-the-
art performing arts facility. Two important agreements were created between the parties. The
Development Agreement laid out the responsibilities of the parties during the construction of the
building. The agreement stated that Cal Poly would donate the land, and construction costs
would be paid 2/3 by the University, 1/6 by FPAC and 1/6 by the City. The Operating
Agreement provided that FPAC and the City would be responsible, on an equal basis, for any
operating deficit, while Cal Poly would not be responsible for any portion of the operating
deficit, but would pay all utility costs and provide routine maintenance of the facility.
Need for On-going Subsidies from the Partners
In the Operating Agreement, the partners envisioned a facility that would be "self-sustaining",
without reliance on annual contributions from the partners. They understood that the fees earned
from the sale of tickets and rental of the hall are only minor, albeit important sources of revenue.
Therefore, the Operating Agreement required FPAC to create a $1 million endowment through
fundraising to supplement these other revenue sources for the PAC. Unfortunately, there were
construction cost overrides, and the partners decided to use the endowment funds to complete
construction. The FPAC also took out a$1 million loan from the Heritage Oaks Bank in order to
open the PAC on time. As a result, there has been an on-going operating deficit at the PAC. It
should be noted that even if the FPAC endowment had not been spent, its potential proceeds of
$50,000-70,000 would have been insufficient to cover the annual deficit.
Prior to the current fiscal year, FPAC and the City have paid an estimated amount toward the
operating deficit in advance, in order to assist the cash flow of the PAC. Cal Poly also provided
approximately $260,000 a year toward administrative salaries and other operating expenses of
the PAC outside its commitments under the Operating Agreement.
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Council Agenda Report–Revised PAC Operational Agreement
Page 2
In addition to underestimating the amount of operating subsidy that would be needed, the
Operating Agreement gave no consideration to a method of providing for major equipment
maintenance and repair, creating an operating reserve, or paying for capital items that were
eliminated at the time of construction to reduce costs. Over the past several years, the partners
have pledged funding on an ad hoc basis to provide for the installation of needed acoustical
enhancements (the City has allocated $150,000 for this purpose), and FPAC and the City have
made payments toward the beginnings of a major equipment replacement and repair fund (the
City paid $50,000 in fiscal year 1999-2000).
Ad Hoc Long-term Funding Task Force
Cal Poly and FPAC recognized the need to establish a long-term funding plan for the PAC,
rather than continuing the existing year-by-year practice. Cal Poly also faced the fact that it has
been paying operating expenses for which it was not contractually bound, such as administrative
salaries. As a result, Cal Poly and FPAC asked the City to join in creating an ad hoc task force
to address these concerns. At the February 6, 2001, Council Meeting, Council Members Marx
and Mulholland were appointed as a Council subcommittee to the task force. The Assistant City
Administrator and the Finance Director both served as staff representatives.
The task force met on four occasions and reviewed the history of the PAC's development and
construction, including exploring a number of underlying assumptions about operations that were
held by the partners at that time. The two existing agreements between the parties were reviewed,
as well as the current budget, long-range financial requirements and capital items to be completed.
The PAC's relationship to the City's mission and various adopted policies was also discussed.
After all the requested information had been gathered, the task force concluded that a Cal Poly
proposal was the most viable remedy to the long-range funding problem. This proposal suggested
that all costs (operations, routine maintenance, utilities, reserves for operations, major equipment
maintenance and replacement)be combined, and a pre-defined distribution of responsibility for any
deficit of costs over revenues be made to the parties. Using a five-year estimate of income from
operations, inflation adjusted operating costs and reserve requirements based on major repair and
replacement cycles from industry sources, Cal Poly projected the annual subsidy that would be
required in each of the next five years to be approximately $1.2 million. (This number would, of
course, be subject to review as part of the annual budgeting process in which all three partners
participate.) Cal Poly proposed that this annual subsidy amount be divided by the same formula
used in the Construction Agreement-1/6 each to the City and FPAC and 2/3 to Cal Poly.
CouncilApproval of Task Force Recommendation
Council members Marx and Mulholland,the Council subcommittee to the task force,recommended
to the Council that it provide conceptual approval of this new long-range funding paradigm, and
direct City staff to work with staff of the other two partners to modify the operating agreement to
reflect this change. Council approval was provided May 15, 2001.
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Council Agenda Report—Revised PAC Operational Agreement
Page 3
Changes to the Operating Ageement
Over the past eleven months, representatives of the parties have been working to reach concurrence
on alterations to the agreement. Originally, Cal Poly proposed making a number of changes to
"clean up" sections of the agreement beyond those relating to funding. Unfortunately, there was
disagreement on the part of the City and FPAC as to whether these changes were truly"clean up"in
nature, or represented significant policy changes relating to important operational issues.
Ultimately, after many meetings, most of the "clean up" items were eliminated, and the majority of
the proposed changes to the agreement reflect only the new long-range deficit funding strategy.
Specifically,the following parts of the agreement were changed:
1. The agreement title was modified to reflect that the agreement relates only to the
Christopher Cohan Center of the Performing Arts Center, and not to the whole Performing
Arts Center,which includes the Cal Poly Theater.
2. Section 3.01,Financing of Center Operations,was re-written to include all operational costs
in the PAC budget (utilities and maintenance were formerly covered directly by Cal Poly),
with any budget deficits divided between the three partners, 1/6 to the City, 1/6 to the FPAC
and 2/3 to Cal Poly.
3. Section 3.02, University Support and Maintenance, has been altered to say that while Cal
Poly will continue to provide utilities, building maintenance, grounds maintenance and
custodial services, costs for these services will no longer be directly paid by the university.
Instead, they will be included in the operational costs of the PAC as indicated in Section
3.01.
4. Section 3.03, Operating Budget and Reserves, has been modified by eliminating the
reference to the City and FPAC having the only responsibility for any operating deficit,
since the revisions to Section 3.01 now charge all three partners with sharing it on a pro rata
basis.
5. Section 3.04, Endowment Income/Other Fundraising, has been changed by deleting
language about FPAC's $1 million dollar endowment, since those funds were spent during
construction of the facility. Instead, language was added allowing the Performing Arts
Center Commission, which is made up of representatives of the three partners, to raise a
future endowment, should it wish to do so. Earnings from any such endowment would be
included in the operational budget.
6. Section 4.01, Use and Access Scheduling, has language added that allows all three partners
to use the facility rent-free for official functions. The sentence allowing offset of the value
of utilities and maintenance services provided by the University against the rental costs for
University functions was deleted, since the cost of these services are now included in the
facility's operational budget.
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Council Agenda Report—Revised PAC Operational Agreement
Page 4
7. Section 8.02, Insurance, has been modified to allow for periodic adjustments in insurance
coverage to recognize inflation and changes in industry standards.
8. Section 8.03, Termination, has been changed to include failure of the parties to deliver on
the revised obligations of the agreement within a reasonable period of time as a basis for
terminating the agreement.
CONCURRENCES
Both the Board of FPAC and President Warren Baker of Cal Poly have agreed to the proposed
revisions to the Operating Agreement. Once Council approval of the agreement has been received,
the Trustees of the California State University System must still provide final approval.
FISCAL IMPACT
At the time Cal Poly proposed the new funding strategy last year, they estimated that the annual
deficit would be approximately $1.2 million per year for the next five years Under the proposed
formula for dividing responsibility, the City's and FPAC's share would be approximately$200,000
annually, with Cal Poly providing about $800,000. The City budgeted $200,000 for both years of
the 2001-03 Financial Plan. The first year's payment has been made, and we anticipate making the
second year's payment in July. It is important to note,however, that the annual deficit amounts for
the 2003-05 Financial Plan could be somewhat larger than $200,000, once the actual budgets for
those years are developed. However,the City's representatives to the PAC Commission,the Mayor
and Assistant City Administrative Officer, will work to assure that any budget deficit is kept to the
lowest possible level.
Attachments
Revised Operating Agreement
g:George/Agenda Reports/PAC Operating Agreement—Adoption of Revisions
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I
ATTACHMENT I
A-51-93-CC
OPERATING AGREEMENT for the
Christopher Cohan Center
This agreement is made and entered into this 315` day of March, 1993, and
amended on April 15, 2002, by and among the Foundation for the Performing Arts
Center, a California non-profit public benefit corporation ("FPAC"), the City of San Luis
Obispo, California (the "City') and the State of California acting through the Trustees of
the California State University (the "Trustees") on behalf of California Polytechnic State
University, San Luis Obispo (the "University") to provide for the operation and
governance of the Performing Arts Center (the "Center") which the Trustees, the
University, the City and FPAC (collectively, the "Parties") have built.
Statement of Facts and Purposes
On December 5, 1989, the Parties entered into a Development Agreement,
Performing Arts Center (the "Development Agreement").
The Development Agreement called for the Parties to enter into an Agreement
for the operation of the Center, consistent with the Development Agreement.
The Parties intend that this Operating Agreement be in satisfaction of the
agreement called for in the Development Agreement.
It is the intent of the Parties that the Center be operated cooperatively for the
mutual benefit of the University and the people of San Luis Obispo County, on a
permanent basis.
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Section 1 — Center Mission and Policies
1.01. The Mission. The Parties agree to operate the Center as a host facility
where a broad mix of community and University nonprofit organizations and commercial
producers will present a diverse array of events. The Parties intend to accomplish this
through a Manager (as hereafter defined) and a professional staff, and through the
Central Coast Performing Arts Center Commission, all as more specifically provided in
Section 2. The Parties agree that neither the Commission nor the Manager of the
Center will produce, sponsor or otherwise take financial responsibility for any event or
performance in the Center or elsewhere without the unanimous agreement of the
University, the City and FPAC.
1.02. Policies on Use and Access. Center policies shall be developed and
implemented by the Commission for use of and access to both interior spaces and
exterior spaces of the Center. As used in this Agreement, exterior spaces means
plazas and courtyards constructed as part of the Center. Such policies shall be
consistent with the Parties' intent that the Center be available to a diverse group of
users. The Manager, the Commission and the Parties shall respect the artistic and the
other rights of expression of users of the Center.
Section 2 — Center Governance and Management
2.01. The Central Coast Performing Arts Center Commission. In consideration
for the non-state funding provided by the City and FPAC for the Center, the Parties
agree that the City, FPAC and the University shall create a nonprofit public benefit
corporation. The purpose of the corporation shall be to advise the University and the
manager on operating policies, scheduling, and maintenance policies. The
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ATTACHMENT
Commission, with concurrence of the University President shall adopt the operating
budget and budget amendments.
2.01.1 Name. The nonprofit public benefit corporation formed by the
Parties shall be known as the Central Coast Performing Arts Center Commission (the
,,Commission").
2.01.2 Board of Directors. The Commission shall be governed by a board
of directors consisting of nine persons (the "Board").
2.01.3 Membership. The Commission shall have no members, as
provided in California Corporations Code Section 5310.
2.01.4 Powers and Responsibilities of the Commission. The Commission
shall be advisory to the University and the Manager of the Center as to operating
policies, scheduling, and maintenance policies. The commission, with concurrence of
the University President, shall adopt the operating budget and budget amendments of
the Center all as set forth herein.
2.01.5 Selection of Directors. The President of the University shall
appoint five directors and five alternates. The City shall appoint two directors and two
alternates. FPAC shall appoint two directors and two alternates.
2.01.6 Compensation of Directors. No director shall be compensated for
services as such, except that directors may be reimbursed for actual expenses incurred
as permitted by California Corporations Code Section 5231.5, and approved by the
Board.
2.01.7 Terms of Office. Directors shall be appointed for a three-year
term. Initial directors shall be appointed before the organizational meeting of directors.
At the organizational meeting, directors shall decide by lot which three among them
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ATTACHMENT 1,
shall serve initial three-year terms, and which three shall serve initial one-year terms. A
Director may be removed at any time without cause by the agency which appointed him
or her.
2.01.8 Quorum. A quorum shall consist of five members of the Board,
including at least one representative from each of the three Parties.
2.01.9 Officers. The Board shall select one of its members as Chair and
one as Secretary to serve at the pleasure of the Board.
2.01.10 Voting. All actions of the Board other than adoption of a budget
or changes to a budget require the approval of five (5) members, with at least one vote
from each of the Parties. Adoption of a budget or changes to a budget require the
approval of seven (7) members with at least one vote from each of the Parties.
2.01.11 Regular Meetings. The Board shall hold regular meetings, on a
schedule to be agreed upon by the members; but, in any event, not less often than
every three months.
2.01.12 Special Meetings. Special meetings may be called by the Chair
or by any two members.
2.01.13 Public Meetings. If the Commission seeks and is.granted status
as a recognized auxiliary organization pursuant to Education Code Section 89900 et
-sec., its meetings shall be conducted in accordance with California Education Code
Section 89920 et seq. All meetings shall be held in the Center unless some other
meeting place providing convenient public accessibility is specified in the notice of
meeting.
2.01.14 Bylaws. The Board shall, from time to time, adopt such bylaws,
rules and policies not inconsistent with this Operating Agreement and the Development
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Agreement as it determines to be best suited to the internal operation of the
Commission and its advisory role to the Manager of the Center and the President of the
University. Proposed bylaws and proposed bylaw amendments shall be submitted to
each of the three Parties for review and comment, all in a timely manner.
2.02. Management. All aspects of the management and operation of the Center
(including both interior and exterior spaces, furnishings and equipment) shall be the
responsibility of a Manager. The Manager shall be a person qualified to perform the
duties required to fulfill the Mission of the Center. Qualifications of the Manager shall
include, but not be limited to professional training, experience and the personal traits
necessary to work together effectively with a diverse group of University and community
groups and individuals. The Parties 'intend that the Manager not be a presenter of
events or an impresario, whether individually, on behalf of the Commission or otherwise.
The Manager shall not otherwise be employed as a presenter of events, whether by the
University or any other entity. Rather, the Manager shall see to the wise use of the
Center for the ultimate benefit of both the University community and the people of the
City of San Luis Obispo and San Luis Obispo County. Prior to hiring a Manager, the
Commission and the President of the University shall adopt a detailed job description for
the Manager. The Manager shall be an employee of the University or a University
auxiliary organization, as the President of the University shall determine.
Early each year, following guidelines established by the President of the
University in consultation with the Commission, the Commission will review the past
year's operations, including an assessment of the Manager's performance.
The employer of the Manager (University or the University Auxiliary) shall be
responsible for insuring that the Manager operates within this Agreement and budgets
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and policies of the Center adopted by the Parties or the Commission, as provided in-this
agreement. The Commission shall advise the President in the selection of the
Manager. The Manager shall be responsible to and serve at the pleasure of the
University President, and shall serve as liaison to the Commission on broad policy
matters. The Manager shall be responsible for all administrative and operating matters.
The President shall consult with the Commission in the review of the Manager and prior
to terminating the Manager.
2.03. Other Center Staff. The balance of the operating staff of the Center will be
employees of the University or a University auxiliary. The Commission shall reimburse
the University and the University auxiliary as appropriate each year, in the amount set
forth in the final approved Center budget, for compensation and benefits for the
Manager and operating staff of the Center, consistent with Section 3 of this Agreement
and the Development Agreement. The Parties contemplate that the Commission will
contract for its support services with the California Polytechnic State University
Foundation, or some other entity suitable to the Commission and the University
President, for its administrative and support services.
The Manager shall be responsible for the appropriate use and operation of the
Center, and for the hiring, training, retention, control and, as needed, the discipline and
•termination of Center employees reporting to the Manager. The Manager will report to
the University President and inform the Commission on these matters.
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Section 3 — Center Fiscal Matters
3.01. Financing of Center Operations. The assessments to cover the budget
requirements of the Center shall be shared by the Parties as follows: two-thirds (2/3)
assessed to the University, one-sixth (1/6) to the Foundation for the Performing Arts
Center and one-sixth (1/6) to the City of San Luis Obispo. The assessment requirement
is calculated as the sum of the Center budget for operations and reserves less revenue
derived from operations. The operating costs shall include, but not be limited to,
management and staff compensation, insurance, contracts for services, supplies and
equipment, interest expense, routine maintenance and utilities. Reserves shall include,
but not be limited to, operations, major maintenance, and repair and replacement.
Center operation revenue shall include rent, concession commissions, endorsement
income, royalties, endowment income, interest income and other revenue items as
agreed by the Parties.
3.02. University Support and Maintenance. The University will provide the
Center with utilities, building maintenance, grounds maintenance and custodial services
consistent with state criteria. . The University's maintenance staff will consult and
cooperate with the Manager as to maintenance and service needs and scheduling
-occasioned by the Center's schedule and uses. Costs associated with these items will
be included in the operating costs of the Center and shared by the Parties per section
3.01 above.
3.03. Operating Budget and Reserves. The Center will be budgeted to operate
on a balanced, fiscally viable basis. The Manager will be responsible for preparing an
annual balanced operating budget, and setting reserve needs in consultation with the
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Commission. The Manager shall not exceed the authorized budget limit without the
prior consent of all three Parties represented on the Commission. The Commission and
the Manager shall conduct no less than quarterly reviews of actual results compared
with the budget. If appropriate in light of those results, the Commission shall adopt, with
concurrence of the University President, and the manager shall implement revisions to
the budget and to Center operations in order to avoid a deficit. The budget will be
effective when approved by the Commission and the University President.
3.04. Endowment Income/Other Fundraising. . The three parties may agree to
pursue the establishment of a Commission endowment when the spendable earnings of
the FPAC's endowment are sufficient to cover the FPAC's obligations under this
agreement. When established, this Commission Operating Endowment Fund shall be
held by a trustee approved by the Parties with the spendable earnings transferred for
inclusion in the Center's operating budget. Other funds held by the FPAC are not
subject to this agreement. FPAC will continue to be the primary fundraising entity for
the Center, and the Commission and the Manager shall coordinate with the FPAC to
insure that fundraising is as efficient as possible.
3.05. Hold Harmless for Trustees. The Commission will release and hold
harmless the Trustees of the California State University from any debts the Commission
.may incur. Failure to finance a deficit or to agree to a budget may be grounds to
terminate this Agreement.
Section 4 — Center Use and Access Scheduling
4.01. Use and Access Scheduling. The Manager, in consultation with the
Commission's board, will prepare at least one year in advance for Commission review a
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use schedule for the following year. The Manager's scheduling decisions will recognize
the city's and community's entitlement to fair and equitable access to and use of the
Center appropriately reflecting their combined approximate one-third share of the capital
costs of the Center.
Two-thirds of the events at the Center shall be activities that enhance the
University's educational mission. In addition, the University shall have priority
scheduling for certain official University functions (such as faculty convocations and
graduations). The University shall present a list of official University functions and their
dates to the Manager annually not later than January 31, of each year for events in the
subsequent fiscal year (July 1 — June 30). The three parties are entitled to rent-free use
of the facility for official functions. In the event of a scheduling conflict, the Manager, the
University and the Commission agree to use their best efforts to resolve the conflict.
The Center will not be the exclusive home for any user group. The Manager will
make every effort to accommodate the needs and schedules of local performing groups
(campus based and community based) including organizations which present touring
performers. The Parties recognize that certain users may best be served by scheduling
more than one year in advance. The Manager and the Commission shall develop
means to adjust to that need while maintaining opportunities for flexibility in scheduling.
All use of the Center shall be subject to the Manager's scheduling decisions after
consultation with the Commission, and subject to the dispute resolution procedures in
Section 4.02. It is the Parties' intent that community and campus nonprofit groups be
charged at a lower rate for use of the Center than other groups. The Manager shall
develop and maintain a schedule of charges for use of the Center in consultation with
the Commission.
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4.02. Resolution of Usage Conflict.
4.02.1 Issues Covered. The only matter subject to conflict resolution shall
be the fairness in the allocation of Center usage for city or community sponsored
events.
4.02.2 Complaint Procedure. In the event the City or FPAC takes
exception to the fairness of Center usage allocated to city or community sponsored
events in the proposed annual calendar developed by the Manager and after review by
the Commission, either the City or the FPAC may write the University President,
specifying the perceived unfairness. The writing must be submitted to the President
within one week of receipt of the Manager's final schedule. The President shall use his
"good offices" to mediate between the complaining party or parties and the Manager. If
the entity cannot accept the President's decision in mediation, it or they may appeal the
matter to a dispute resolution committee.
4.02.3 Dispute Resolution Committee. The dispute resolution committee
shall be composed of three members: one member shall be appointed by the University
President; one member shall be appointed by the complaining party or parties bringing
the dispute; and one neutral member selected by the presiding Judge of the Superior
Court of San Luis Obispo County upon application of any one party.
4.02.4 Appeals. The dispute resolution committee shall decide the
matter. In the normal course of events, all parties shall accept the committee's decision
as final. In an unusual circumstance, the party bringing the dispute may have a
recourse to the Chancellor of The California State University by submitting a letter
explaining why the committee's decision is unacceptable. The Chancellor shall affirm,
modify or reject the dispute resolution committee's decision based on the written
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submissions. The Chancellor's decision shall be appealable to the chair of-The
California State University Board of Trustees whose decision shall be final.
4.02.5 Time Limit. It is expected that the dispute process shall be
completed within thirty (30) days of the time it is begun.
Section 5 — Concessions
5.01 Concessions. The sale or other distribution of food and beverages will be
an integral part of events which occur in the Center. Therefore, it is important that the
Center's users and patrons have available a first-class, diverse, food and beverage
offering. The Parties agree that the California Polytechnic State University Foundation
will be the primary food service provider for the Center. Under special circumstances
the Commission may recommend exceptions to this provision subject to approval of the
University President.
The Manager in consultation with the Commission shall develop concessions and
catering policy guidelines. All concessions at the Center will be operated within these
policy guidelines. An equitable and agreed upon percentage of the gross proceeds
from concessions and catered activities will accrue to the Center and be used to cover
Center operations through the Operating Budget.
Section 6 — Acquisition and Display of Art
6.01. Acquisition and Display of Art. The display of art at the Center is an
important function of the Center. The Commission shall develop policies and
procedures for acquiring and displaying art at the Center. Such policies shall honor and
protect the free expression of ideas. Such policies shall govern, among other things,
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which works if any will be acquired by the Commission and which works will be
accepted if donated to the Commission. The Commission shall, in dealing with art,
always consider its ability to preserve, protect and display pieces it may acquire
consistent with available resources. In general, the Commission should not attempt to
acquire a permanent collection.
Section 7 — Parking
7.01. Parking Management Program. University shall develop a parking
management program providing public access to campus parking facilities for events
scheduled at the Center. The University agrees that providing adequate, though .
nonexclusive parking is a part of its responsibility.
Section 8 — Miscellaneous Matters
8.01. No Borrowing. The Commission shall not pledge as collateral the Center
building, fixtures, or land they are situated upon for any loan, debt or contract.
8.02. Insurance. The Commission shall maintain the following types and
amounts of insurance, subject to periodic adjustments to recognize inflation and
changes in industry standards:
8.02.1 Liability Insurance. The Commission shall obtain and keep in force
a policy or policies of public liability and property damage insurance with a single
combined liability limit of not less than $5,000,000, and property damage limits of not
less than $500,000 insuring against all liability of the Commission arising out of and in
connection with use of occupancy of the Center. The Trustees, the City and FPAC, and
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any supporting auxiliary shall be named as additional insureds. The Commissionshall
maintain such other policies of liability as the Board determines prudent.
8.02.2 Property Insurance — Premises. The Commission shall obtain and
keep in force a policy or policies of insurance covering loss or damage to the Center,
including fixtures, equipment, and improvements to the extent of at least one hundred
percent (100%) of full replacement value, providing protection against all perils included
within the classification of fire, extended coverage, vandalism, malicious mischief,
special extended perils ("all risk', as such term issued in the insurance industry). These
shall include demolition, increased costs of construction, and change in building law
endorsements.
8.02.3 Policy Form, Content, Insurer. All insurance required under this
Agreement shall be issued by responsible insurance companies qualified to do business
in California and reasonably acceptable to the Parties. All such insurance shall be
issued as primary, not blanket, policies. No such policy shall be cancelable or subject
to reduction of coverage or other modification except after thirty (30) days prior written
notice to the Parties.
8.03. Termination. This Agreement shall terminate, and the relationship among
the Parties shall be dissolved upon the happening of any of the following:
Agreement of all three Parties.
Failure of the commission to adopt in a timely manner an Operating
Budget with appropriate provision for reserves, as established by
Commission policy, for a period of one year after expiration of the most
recent budget.
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Failure of any of the parties to deliver on the obligations outlined in this
Operating Agreement after having been given a reasonable period to
remedy any deficiencies.
Failure of the University to provide acceptable parking.
8.04. Amendment. This agreement may be amended in whole or in part, once
or more often, by written agreement executed by the Trustees of The California State
University, the University, the City of San Luis Obispo, and the Foundation for the
Performing Arts. In the event of dissolution, Trustees will give recognition to the City's
and FPAC's contributions to the Center by guaranteeing community access to the
facility at a rental rate and on a schedule no less favorable than what is available to
University affiliated groups, consistent with the community's expectation of fair and
equitable access to and use of the Center as set forth in Section 4.01 above.
Section 9 — Execution
9.01. Due Authorization. Each of the Parties represents by executing this
Agreement that he or she has been fully and completelyauthorized to do so and that he
or she is empowered to bind the entity on whose behalf the Agreement is signed.
Date: THE CALIFORNIA STATE UNIVERSITY
By:
Date: D CALIFORNIA POLYTEC IC STATE
UNIVERSIT
By:
Date: CITY OF SAN LU OBISPO
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By:
Date: FOUNDATION FOR THE PERFORMING
ARTS CENTER
By:
ATTEST:
City Clerk
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