07 Staff Report - Contract Negotiations For Music in the Park Coordination
DATE: TO: FROM: COUNCIL AGENDA REPORT FEBRUARY 19, 2009 MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER MEETING DATE: 3/2/09 ITEM NO: '1 PREPARED BY: SUBJECT: APPROVE THE ARTS COMMISSION
RECOMMENDATION REGARDING THE FUTURE OVERSIGHT OF MUSIC IN THE PARK CONCERT SERIES AND TO AUTHORIZE STAFF TO COMMENCE CONTRACT NEGOTIATIONS WITH LOS GATOS MUSIC & ARTS FOR MUSIC IN THE
PAR!C COORDINATION RECOMMENDATION: That the Town Council approve the Alis Commission recommendation (Attachment 1) regarding future oversight ofthe Music in the Park (MIP) concert series
and authorize staff to commence contract negotiations with Los Gatos Music and AIis for MIP coordination. BACKGROUND: Music in the Park is a ten-week series of fi'ce-to-the-public concerts,
which are held on Sunday afternoons from Iunethrough August on the Los Gatos Civic Center lawn. MIP, now in its 21st season, is traditionally funded by community contributions raised
by the Town of Los Gatos Arts Commission. Alis Commission members and Town staff are responsible for all work related to the series, including fundraising, accounting, contract negotiations,
advertising, and event coordination. DISCUSSION: Attached is a proposal from the AIts Commission which recommends that coordination and management ofthe MIP conccrt series be transfelTed
to thc non-profit agency Los Gatos Music and AIts (LGM&A). LGM&A, whose mission is to inspire, nUliure, develop, and produce cducational programs, scholarships, conceIts and other artistic
programs which promote music and the fine arts for the benefit of the cOlmnunity of Los Gatos, funds and managcs the summcr Regina A. Director N:\CSD\TCRPTS\2009
TCRPTS\MIP.doc -,d-t-Reviewed by: Town Manager Attorney __Clerk Administrator __Community Development
PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: OVERSIGHT OF MUSIC IN THE PARK FEBRUARY 19,2009 . Jazz in the Plazz conceIt series held at Town Plaza Park. StaffsuppOlts the COlmnission's recommendation.
As noted in the attached proposal, there are several issues that restrict the ability of the Arts COlmnission to manage and produce MIP effectively, including the Town solicitation and
purchasing policies, the impact on Town staff and Brown Act considerations. The AIts COlmnission believes that the new LGM&A organization represents a great oppOliunity to position the
MIP program for continued success. Council approval of the proposal would be followed by negotiations with LGM&A; the discussions would be aimed at preparing a final contract for presentation
to the LGM&A Board and the Town Council no later than August 2009. This would allow for transfer of the MIP project from the Town to LGM&A by September 2009. The contract would address
coordination and funding clements including a transition timetable, program purpose, number of conceIts, sponsorships, and use ofTown facilities. It is anticipated that the MIP fund
balance would be granted to the agency over the contract tenn to offset Town labor costs. The contract would provide for regular project evaluation and allow for project amendments as
necessary. AIts Commissioner Jonathan Knowles would continue to serve on both the Arts COlmnission and the LGM&A Board to help facilitate the transition. In order to avoid conflict of
interest issues, Commissioner Knowles has disclosed his position on the LGM&A Board. Furthermore, the AltS COlmnission has fonnally noted the fact and although it has authOlized him
to participate in the discussions, his vote will not be counted. CONCLUSION: During the past year, the Arts COlmnission and Town staffhave reviewed and evaluated the MIP program goals
and coordination. Discussions have highlighted a common desire to coordinate the program through an alternative structure that incorporates coordinated community fundraising, is not
subject to the rigorous confines of the Brown Act, and reduces the impact on Town human resources. LGM&A, a non-profit agency with a music and arts mission, has a structure which could
assume MIP and thereby allow us to meet our objectives. The Town has suppOlted this Arts Commission project since its inception over twenty years ago. An agreement with an area non-profit
helps us to assure the program's longevity. With its proposal, the Arts Commission is asking the Town Council for pennission to enter into negotiations with LGM&A regarding future oversight
of the MIP conceIt series. If an agreement is reached, the contract would be brought back to Council for its final approval. ENVIRONMENTAL ASSESSMENT: Thc recommended action is not a
project defined under CEQA, and no nllther action is required.
PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: OVERSIGHT OF MUSIC IN THE PARK FEBRUARY 19,2009 FISCAL IMPACT: If management of the MIP concert series was assumed by LGM&A, the following fiscal
impacts would result: ••• Revenues and expenses related to direct concert series costs would be eliminated from the Town's Operating Bndget. The revenues are received from the series
sponsors, and cover all direct series expenses. The amount budgeted for FY 2009 is approximately $51,000. Incidental expenses such as fees and postage, which are not covered by series
sponsorship revenues, would be subject to the negotiation process. Human resource costs in the Community Services and Parks and Public Works Departments would be subject to the negotiation
process. Currently, PPW costs are reimbursed by series sponsorship revenues, while CSD costs are not. The Town would likely retain some human resource costs to oversee the contract with
LGM&A. Attachments: 1. Proposal for Future Oversight of Music in the Park 2. Letter from Los Gatos Music & Arts Distribution: Art Commissioners Teri Hope, President, Los Gatos Music
& Arts
Attachment 1 PROPOSAL FOR FUTURE OVERSIGHT OF MUSIC IN THE PARK Executive Summary For 20 years, the Los Gatos Arts Commission has been responsible for producing the town's annual Music
in the Park (MIP) summer concert selies. The Aiis Commission is appointed by and serves at the pleasure of the Los Gatos Town Council, and receives guidance and administrative suppOli
ii-om the Community Services Depmiment (CSD). This concert series is funded by donations ii-om local businesses and individuals at a variety oflevels ranging ii-om $250.00 to $5000.00.
These sponsorships cover the costs of hiring the perfOlmers and sound teclmician, plinting posters and other collateral materials, fees paid to Parks & Public Words employees, business
license fees, advertising costs, porta-potties, temporary workers, website maintenance, and any capital expenses (such as new and replacement staging and drapery). Community Services
Department (CSD) staff provides adminish'ative suppOli and oversight of the Aiis Commission and MIP. MIP. Neither the Aiis Commission nor MlP sponsors reimburse the Town for thc hours
contributed by CSD staff. Instead, this administrative support is an expense to thc Town. In thc span of the last two decades, MIP has grown significantly in size and production complexity
-from a few concelis attended by fewer than 1,000 people each summer, to a full slate of 10-12 concerts with an average attendance of over 3,000 at each. The response from Town residents
has been overwhelmingly positive, mId local businesscs and individuals have generously continucd to demonsh'ate their suppOli for the 2009 MIP senes. Cu....ent Challenges The Alis Commission
has encountered several issues that restrict its ability to manage and produce MIP effectively. These include: 1. Solicitation policy -Current Town policy forbids all other commissions
from soliciting funds from the general public, with the goal of eliminating any potential "quid pro quo" situations. Although Council members were kind enough to make an exception for
the the Alis Commission during the 2008 MIP season, wc recognizc that this is a very "grey" area. 2. Contract negotiations -Town policy has occasionally presented challenges with regard
to the selection of the optimum vendors for MlP: Given that Los Gatos has a "lowest bid" policy, the Arts Commission has been unable to select preferred vendors. N:\CSD\MUSIC IN THE
PARK\Music ill. the Park\MlP 2009\MIP Proposal Future Ovcrsighl.doc
3. Impact on Town staff-CSD reports that its workload has increased dramatically. Given the recent history ofMIP, the Alis Commission has an expectation of still fmiher growth in the
future -with a correspondent increase in the amount of adminish·ative suppOli that would be provided by the CSD. 4. Brown Act considerations -The success ofMIP (and every large-scale
production) depends on close collaborations between cOlmnittee members selected to oversee various aspects of the conceli series. At celiain times during the production process (particularly
during the fundraising season, and just prior to the launch of the first conceli), consultations, meetings, and phone calls are necessary on a daily basis; often several times daily.
Yet, since the Arts COlmnission is made up of volunteers who serve as representatives of the Town, all such interactions must be made open and transparent -meaning that all such meetings
must be publicly posted and available for attendance by anyone who chooses to do so, lest the Commission be in violation of the Brown Act. Given the necessary lead-time for this process,
this is a highly unworkable model for MIP committee members who must be proactive and respond quickly as very dynamic, real-time situations dictate. 5. Reserves -Currently, the Town
has a reserve account for MIP totaling approximately $39,000. Thcse funds are designated for paying the performers and other related expenses detailed in the Executive Summary above.
The Arts Commission wishes to ensure that these funds will remain available to continue producing MIP in the futme. Once they have been exhausted, any additional cxpenses will be covered
via the model outlined bclow. Opportunities In 2002, formcr Arts COlmnission and MIP Chair Teri Hope lamlched the jazz on the plazz (JOTP) summer concert series. JOTP has since become
highly successful and an impOliant pmi of our town. In 2008, Teri and other community leaders formed Los Gatos Music and Arts (LGM&A), a registered 501 (c)(3) non-profit organization
whose mission is to inspire, nurture, develop, and produce educational programs, scholarships, concerts, mld other artistic programs which promote music and the fine mis for the benefit
of the community of Los Gatos. To date, LGM&A has funded The Museums of Los Gatos and A Place for Teens. LGM&A has a strong management team and board of directors, and a proven commihnent
to the arts in Los Gatos. The Los Gatos Arts COlmnission would like to propose the creation of a new organizational structure for MIP, such that tlle conceli series would be moved under
the "umbrella" of Los Gatos Music mld Arts. It is our hope that this new arrangement can eliminate the above-mentioned "hurdles," and position MIP for continued success in the years
to come. We believe that such a shift makes sense for many rcasons: I. With a single, unified fundraising "machine," versus two smaller groups competing for tlle smne sponsor dollars
from local businesses and private donors, N:\CSD\MUSIC IN THE PARK\Music in the 2009\1\I1IP I1IP PmposalFuture Oversight.doc
MIP and JOTP can avoid the duplication of fundraising effOJis. At the same time, sponsors will only receive one solicitation request for both series, which will likely improve both JOTP's
and MIP's chances of receiving financial support. 2. Given that LGM&A personnel is not appointed by the Town, adherence to Brown Act policy that cUlTently govems (and restricts) meetings
will no longer be necessary. Also, LGM&A personnel will be free to send and receive cOlTespondence as necessary, solicit the ideal conceli vendors, and negotiate all relevant contracts.
3. One of the cunent MIP Co-Chairs cunently serves on the LGM&A board; the other will join the LGM&A board at the end of her tenn on the Alis Commission this December. This will create
ideal shOJi-term collaboration between the two groups. In the long tenn, these synergies can ensure a smooth transition to the new management and production model, and maintain a consistent
level of quality forMIP. 4. Infonnal, exploratory discnssion with the LGM&A board have have been extremely positive, with all pmiies expressing enthusiasm for uniting the two concert
series under one organization. Clearly, the LGM&A board sees the value in combining its efforts with the Arts COJmnission. Additionally, LGM&A has an extensive group of volunteers who
could be tapped to support MIP. 5. Most importantly, by transitioning MIP away from the Town's purview and over to LGM&A, Town staff would enjoy a greatly reduced administrative workload.
Freed fi'om the responsibility ofMIP oversight, CSD staff members could devote the hours formerly dedicated to MIP to other tasks. Liaison -Arts Commission & MIP While the A1is Commission
sees the value inherent in shifting fundraising, mmlagement and production ofMIP to LGM&A, we are also cognizant of the fact that the concert series will still be presented as a benefit
for Town residents. LGM&A will enthusiastically cncourage the weekly pmiicipation at MIP by Town Council members, and will continue to extend the Town's "brand" at all concelis. In In
the best of all worlds, this h'ansition will be completely seamless to any and all conceli attendees, and MIP will continue to be as successful as it has been in years past. From an
attendee perspective, there will be no discemable difference. Conclusion The Los Gatos Alis Commission recognizes that Music in the Park is a tmlyunique, "Los Gatos-style" event, and
with steady growth has taken on its own life in the past several years. Our aim is to ensure the fl.lture viability ofthe conceli series, which will likely mcan that "business as usual"
is no longer a relevant model. With the suppOli of Council we hope to solidify the transition to LGM&A beginning with the 2010 MIP season (this N;\CSD\MUSIC INTIffi PAH.K\Music in the
Park\MIP 2009\MIP Proposal Future Oversight.doc
transition ideally will take place at the end of Angust, 2009, when plam-ring for the 2010 MIP season begins). We believe this will allow for the continnation of this wonderful benefit
for Town residents, and create a scalable model for futme success. By aligning MIP with Los Gatos Music and Arts, we can realize those goals. We look forward to Council's feedback and
recommendations. N:\CSD\MUSIC IN TIIE PARK\Music in the Park\MIP 2009\:MIP ProposulFnture Oversight.doc
www.jazzontheplazz.com BENEFICIARY ORGANIZATIONS: The MuselUTIS ofL05 Gatos Bike Groves, Executive Director Sandy Decker, President TIle Venue/APlace for Teens Lee Fagot, Board President
LOS GATOS MUSIC & ARTS BOARD of DIRECTORS: JonnlhauKnawles. Chailpel'SOn & Jazz Co-Chair Ten Hope President & Jazz Co-Chair Joan Perry SecretmYITreasurer Michael Jacobi Executive Producer
& JazzAl'tisticDirector Victoria Trammell Jazz Assistant Producer Branford Marsalis Artistic Advisor Tim Bames Ken & Jackie Cannizzaro Peter Carter Kyle & Ivy Chesser David Cohen Michael
Hyman D. Michael Kane Bmce Labadie Steve Leonardis Deb & Doug Lockie Steve Mangold JeffMiller Don Olivet Marguerite Padovani Ed & Louise Rathmann Andren Skov Noreene Wilson LOS GATOS
MUSIC & ARTS 101 W. Main St. Los Gatos, CA 95030 Attachment 2 February 11,2009 Town of Los Gatos Los Gatos Arts Commissioners 208 E. Main St. Los Gatos, Ca 95030 Re: Music in the Park
Dear Commissioners, As President of the Los Gatos Music & Arts, I am so very pleased to advise you, that the LGM&A Board of Directors has voted in favor of ,including the Music in the
Park project under its umbrella in future years. We clearly understand this proposal is pending acceptance from the Arts Commission and final approval from the Town ofLos Gatos. As you
know, the Los Gatos Music & Arts is a 501(c)(3) Non Profit organization and is an umbrella organization, fostering music and arts programs including, but not limited to, the Jazz on
the Plazz series. LGM&A has the essential experience and resources to incorporate the MIP concert series under its umbrella to our mutual benefit and shared vision. The Los Gatos Music
& Arts mission is to inspire, nurture, develop, facilitate and produce concerts, educational programs, scholarshjps and other artistic programs for the benefit of the community of Los
Gatos. We believe including the MIP series under LGM&A is a very good fit for all concerned. I can say with confidence the board members, volunteers and staff of LGM&A will embrace the
Music in the Park project and its dedicated team members. We are all committed to maintaining the wellestablished quality and standards which our community has grown to expect fi'om
its beloved Sunday concert series. //. /Smcerely, /. . '-..