Tuesday, October 11, 2011

FIVE-YEAR USE AGREEMENT BETWEEN THE CITY OF CARMEL-BY-THE-SEA & FOREST THEATER GUILD FOR THE OUTDOOR FOREST THEATRE

ABSTRACT: At the 4 October 2011 City Council Meeting, the City Council considered a Resolution extending the Forest Theater Guild’s lease of the Forest Theater for one year; Staff recommended that a Resolution be adopted to extend the Forest Theater Guild’s lease for the Forest Theater for one year. After council deliberations, Council Member Jason Burnett made a motion to approve a Resolution extending the Forest Theater Guild’s lease of the Forest Theater for three years, seconded by Council Member Paula Hazdovac and carried by a vote of 4-1, Mayor McCloud dissenting. The Forest Theater Guild’s 5-Year Use Agreement of April 2011 is embedded. The Agenda Item Summary, Staff Report and Resolution are reproduced.

FOREST THEATER 5-YR USE AGREEMENT FTG April 2011

FOREST THEATER 5-YR USE AGREEMENT Between the CITY OF CARMEL-BY-THE-SEA AND FOREST THEATER GUILD

Meeting Date: October 4, 2011
Prepared by: John Goss

City Council
Agenda Item Summary


Name: Consideration of a Resolution extending the Forest Theater’s lease of the Forest Theater for one year.

Description: The Forest Theater Guild (FTG) has leased the Forest Theater for many years, presenting a number of live plays and movies each season. At the April 5, 2011 Council meeting, a one-year lease with the Guild for use of the Forest Theater was approved, with the direction to ask Guild to return after the conclusion of the 2011 season with a request for a full lease to 2015. The Council action also gave specific direction on construction time schedules and the performance calendar.

At the conclusion of the 2011 season, on July 29, 2011, the City received a letter from FTG requesting approval of four years of what the Guild considers a normal five-year lease. Action by the Council was requested in order to facilitate the Guild’s planning for the 2012 season. After evaluating FTG’s request for a lease extension to 2015, staff met with members of the Guild’s Board of Directors to discuss some problems
noted during the 2011 season. The Board members present indicated that these issues would be addressed, such as obtaining blanket permits from the Health Department, ABC and the City. Staff was impressed by the efforts of the new Board to better organize FTG and to move the Guild forward.

Overall Cost: None

Staff Recommendation: Staff recommends that a Resolution be adopted to extend the Forest Theater Guild’s lease for the Forest Theater for one year.

Important Considerations: It appears that the focus of the Board is pointed in the right direction; however, to determine if this intent is followed through by appropriate action, it is recommended that the lease be extended by one year rather than four at this time.

Decision Record: None

Reviewed by:

________________________________ _________________
John Goss, Interim City Administrator Date

TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: INTERIM CITY ADMINISTRATOR JOHN GOSS
SUBJECT: CONSIDERATION OF A RESOLUTION EXTENDING THE FOREST THEATER GUILD’S LEASE OF THE FOREST THEATER FOR ONE YEAR


The Forest Theater Guild (FTG) has leased the Forest Theater for a number of years, presenting a number of live plays and movies each season. On July 29, 2011, the City received a letter from FTG requesting approval of four years of what the Guild considers a normal five-year lease. Action by the Council was requested in order to facilitate the Guild’s planning for the 2012 season.

You may recall that a lease extension with the FTG was considered at your April meeting. Council’s action at that time was to enter into a one-year lease with the Guild for use of the Forest Theater, and to ask the Guild to return after the season with a request for a full lease to 2015. The action also gave specific direction on construction time schedules and the performance calendar.

Now that the 2011 season has concluded, and an extension of the lease to 2015 has been proposed, staff has evaluated FTG’s request. After meeting with representatives of the Guild’s Board of Directors, staff was impressed by the efforts of its new Board to better organize FTG and move the Guild forward. Revised By-laws are scheduled to be considered by the Board on October 3, 2011. A Board retreat was held to set the tone and direction for FTG. Fund Builders Alliance was engaged to develop a sustainable financial plan for the Guild.

The Board members at the meeting also expressed a desire to address problems in 2012 that were brought to their attention. These problems include:

• Not consistently obtaining written permission from the City Administrator’s Office for the sale of food or beverages as required by Exhibit “C” of the Forest Theater use agreement. These permits require information regarding the type of food and beverage to be furnished and the name of the responsible person who will provide the food and be responsible for the cleanup.
• Although the FTC has use of the facility for nine weeks, permits were only requested for four nights during the season, and those were for special events. Also, these permit requests did not contain the detail required by the use agreement.
• It appears that ABC licenses were obtained for certain events, but not for other evenings where they were required.
• There is a general impression among staff that FTG is a high maintenance organization regarding requests for staff assistance. Maintenance staff has very limited hours to devote to these requests.

The Board members at the meeting indicated that these issues would be addressed, such as obtaining blanket permits from the Health Department, ABC and the City. It was explained by staff that the permits from the Health Department and ABC can be used as attachments to support the permit required from the City.

It appears that the focus of the Board is pointed in the right direction. To determine if this intent is followed through by appropriate action, however, it is recommended that the lease be extended by one year rather than four. While a lengthy lease may be needed for a capital campaign, most nonprofit organizations normally find a one-year lease is sufficient for operational fund raising.

RECOMMENDATION
It is recommended that a Resolution be adopted extending the Forest Theater Guild’s lease for the Forest Theater for one year.

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA EXTENDING THE FOREST THEATER’S LEASE OF THE FOREST THEATER FOR ONE YEAR


WHEREAS, Forest Theater Guild is a performing arts organization in the City; and

WHEREAS, the City owns the Forest Theater facility and property; and

WHEREAS, the City leases the Forest Theater facility and property during a performance season, generally commencing early April and ending in late July; and

WHEREAS, the Forest Theater Guild made a formal request at the completion of its 2011 season for an extended lease agreement for the Forest Theater facility (including the Indoor Theater).

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Authorize a one-year lease extension with the Forest Theater Guild.

2. Authorize depositing fees generated from the Forest Theater Guild lease into the Forest Theater Enterprise Fund – Account #60-40727.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 4th day of October 2011, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED:

_______________________
SUE McCLOUD, MAYOR

ATTEST:

__________________________
Heidi Burch, City Clerk

1 comment:

Outdoor Theater Fan said...

Kudos to the majority on the council who rejected the recommendation of John Goss and Heidi Burch and the constant complaints of the mayor. If it takes more time to work things out with the FTG, then the city staff should find the time to forge a successful partnership with FTG and work things out for the benefit of the community. That is why there are there, not to make excuses for why they cannot do what needs to be done to make positive progress.

It is more beneficial to the community at large to have both FTG and PacRep at the Forest Theater. The mayor and city staff need to find ways to make things work, not approach things with a negative attitude and obstructionist tactics.