Board of Directors Meeting September 27, Please silence your cell phones

Transcription

1 Board of Directors Meeting September 27, 2018 Please silence your cell phones

2 The Mission of OCFEC is Celebration of Orange County s Communities, Interests, Agriculture and Heritage (with results justifying resources expended)

3 5. CEO s Operational Announcements & Updates

4 2018 OC Fair

5

6 August 2018 YTD Revenue 44,826,429 YTD Expenses 36,002,426 YTD Net Proceeds 8,824,003 Actual Budget Variance $ $ 44,188,307 $ 638,122 $ $ 36,072,957 $ 70,531 $ $ 8,115,350 $ 708,653

7 CASH & EQUIVALENT August 31, 2018 August 31, 2017 $ 55,196,490 $ 52,647,749

8 JUNE 9, :30 AM - 11:30 AM JUNE 9, :30 AM - 11:30 AM

9 JUNE 9, :30 AM - 11:30 AM JUNE 9, :30 AM - 11:30 AM OC Quilt, Craft & Sewing Festival Thursday-Saturday, Sept Malibu Kennel Club Dog Show Saturday-Sunday, Sept Centennial Farm Garden Class Saturday, Sept. 29 Ultimate Home & Outdoor Expo Saturday-Sunday, Sept

10 Speedway Saturday, Sept. 29, Oct. 6, Oct. 13 Golden Boy Boxing on ESPN Thursday, Oct. 4 Crossroads of the West Gun Show Saturday-Sunday, Oct. 6-7 Centennial Farm Garden Class Saturday, Oct. 6

11 Fight Club OC Thursday, Oct. 11 Voices: Veterans Storytelling Thursday, Oct. 11 Gem Faire Friday-Sunday, Oct Repticon Saturday-Sunday, Oct

12 OC Japan Fair Friday-Sunday, Oct Centennial Farm Garden Class Saturday, Oct. 20 SoCal Veg Fest Saturday-Sunday, Oct Centennial Farm Garden Class Saturday, Oct. 27

13 Monday-Friday: 1p.m.-4p.m. Saturday-Sunday: 9a.m.-4p.m. Wed.-Sun., 11a.m.-5p.m. Saturdays/Sundays, 8a.m. 4p.m. Thursday, 9a.m. 1p.m.

14 5. CEO s Operational Announcements & Updates

15 6. Matters of Public Comment Speakers are requested to sign in prior to the start of the meeting and are limited to three minutes. Public comment is allowed on issues NOT on the current Agenda. However, no debate by the Board shall be permitted on such public comments, and no action will be taken on such public comment items at this time, as law requires formal public notice prior to any action on a docket item. Comments will be accepted on Agenda items during the meeting. Speakers wishing to address the Board on items on the agenda are requested to sign in prior to the start of the meeting and identify the agenda item[s] on which you desire to address the Board. Speakers are limited to three minutes.

16 7. Minutes A. Board Meeting held June 28, 2018 Action Item B. Board Meeting held May 24, 2018 Action Item

17 8. Consent Calendar: (Policy Reference: 4.3.4) All matters listed under Consent Calendar are operational matters about which the Board has governing policies, implementation of which is delegated to the CEO. They will be enacted in one motion by category in the order listed below. There will be no discussion of these items prior to the time the Board of Directors votes on the motion, unless members of the board, staff or public request specific items to be discussed separately and/or removed from this section. Any member of the public who wishes to discuss Consent Calendar items should notify the Chair of the Board, at the time requested and be recognized by invitation of the Chair to address the Board.

18 9A. Committee/Ad Hoc Committee/Liaison Reports INFORMATION ITEM: To assure compliance with the Bagley-Keene Act, Committee reports are only for the purpose of the Committee chair, Ad Hoc Committee members or Liaison to provide a verbal update. Should the Board want to discuss any Committee work item not already on the agenda; those would need to be agendized for a future Board meeting. i. Heroes Hall Veterans Foundation Board (Director La Belle, Chair; Director Cervantes) ii. Financial Monitoring Committee (Director Pham, Committee Chair; Director Mouet) iii. Legislative Monitoring Committee (Director Aitken; Committee Chair; Director Ruiz) iv. Master Site Plan Ad Hoc Committee (Director La Belle, Committee Chair; Vice Chair Ruiz) v. Tenant Liaison Committee (Director Pham, Committee Chair; Director Cervantes) vi. Equestrian Center Ad Hoc Committee (Director Aitken, Committee Chair; Director Cervantes; Chair Bagneris) vii. Pacific Amphitheatre Operation Evaluation & Review Ad Hoc Committee (Chair Bagneris, Committee Chair; Vice Chair Ruiz) viii.board of Directors Governing Policy Manual Review Ad Hoc Committee (Chair Bagneris, Committee Chair; Vice Chair Ruiz)

19 9B. Costa Mesa City License and Sales Tax Requirements INFORMATION ITEM: City of Costa Mesa Business License Requirement: The City of Costa Mesa has an ordinance that requires organizations conducting business in the City of Costa Mesa to obtain a $5.00 temporary business license. However, organizations doing business on state property are generally exempt from this requirement under the doctrine of sovereign immunity. Sales Tax State & Local Taxes All organizations conducting business in the State of California are required to pay state sales tax and obtain a California State Sellers Permit. The State of California, through the California Department of Tax and Fee Administration (CDTFA), collects these sales taxes and makes distributions back to the respective cities or counties.

20 9B. Costa Mesa City License and Sales Tax Requirements INFORMATION ITEM: The District s Role in communicating State of California Sales Tax information to organizations conducting business on the District s property The following language is included in our fair-time commercial & concession contracts: All Merchants and Concessionaires must apply for a California State Seller s Permit number directly to California Department of Tax and Fee Administration. Unless a valid Seller's Permit is on file with the OC Fair, you will not be allowed to set up. Government Regulations You are required to pay all requisite deposits, fees and taxes, including possessory interest tax, which may be levied by the County of Orange. You must also obtain all licenses applicable to the operation of your exhibit, and are responsible for any city, county and state permits and licenses required by law.

21 9B. Costa Mesa City License and Sales Tax Requirements INFORMATION ITEM: The following language is included in all District year-round rental agreements: The attached Request for Taxpayer Identification Number and Certification (Form W-9) must be completed and submitted with all other contractually required documentation (insurance certificates, etc) before any rental agreement can be fully executed. Additionally, and as specified in RULES AND REGULATIONS GOVERNING RENTAL SPACE Rentor recognizes and understands that this rental may create a possessory interest subject to property taxation and that the Rentor may be subject to the payment or property taxes levied on such interest. In addition, AB 1499 sales reporting requirements (re: Sales and Use Tax Returns) are provided to all Fair-time partners (concessionaires/merchants) and Year Round clients (event promoters and their exhibitors).

22 9C. Update on OCFEC Public Record Request Process and Current Status Since January 1, 2018, the 32nd District Agriculture Association has received 147 public record requests. Public Records staff works with the Attorney General s office and OCFEC Executive Team to ensure compliance with the California Public Records Act. Currently, out of the 147 public records requests received this year, five are still pending. In reviewing best practices from other District Agriculture Associations all public records requests are processed through California Department of Food and Agriculture, Fairs & Expositions branch. San Diego County Fair (22nd DAA) and Orange County Fair (32nd DAA) are the only DAAs that manage their public records requests in house.

23 9C. Update on OCFEC Public Record Request Process and Current Status In reviewing the best practices and the websites of cities in Orange County we found that none of the 34 cities in Orange County post their responsive documents to public records requests for the public to access online. However, below are the three cities that post public records request by date, requestor and summary of records requested on their websites. RECOMMENDATION: At the Board of Directors discretion.

24 9D. Adopt New Safety & Security Board Policy At the request of the Board Leadership, staff was directed to create a new Safety and Security Board Policy to be incorporated into the Board of Directors Governing Policy Manual.

25 9D. Adopt New Safety & Security Board Policy Draft Policy 2.12 The CEO will not operate without safety and security planning, procedures and training for the protection of the Association, the staff and guests. 1. Operate without an Incident Command Procedure / Emergency Preparedness Plan, reviewed by appropriate governmental agencies, and communicated to key staff, vendors and production personnel. To this end; A. The CEO will schedule a security meeting with the appropriate security partner representatives and two policy representatives from the Board of Directors prior to the start of the annual OC Fair and once in the approximate mid-point of the annual OC Fair.

26 9D. Adopt New Safety & Security Board Policy Draft Policy 2.12 B. The CEO will ensure the continued development and delivery of Security, Health and Safety training annually for staff and management of the OC Fair & Event Center. C. The CEO will ensure the annual budget supports continuing investment in technology and equipment for Security, Health and Safety. D. The CEO will ensure the ongoing investment in staff/management continuing education in Security, Health and Safety for the advancement of procedures and best practices. E. The CEO will ensure risk management facility inspections are conducted regularly and corrections are made in a timely manner.

27 9D. Adopt New Safety & Security Board Policy RECOMMENDATION: Adopt the new Board of Directors Safety and Security Governing Policy as presented by staff.

28 9E. Approve Travel Request for the Annual International Association of Festivals and Events (IAFE) Convention in San Antonio, Texas AB1887 prohibits a state agency, department, board, or commission from requiring any state employees, officers, or members to travel to a state that has enacted a law that (1) voids or repeals, or has the effect of voiding or repealing, existing state or local protections against discrimination on the basis of sexual orientation, gender identity, or gender expression ; (2) authorizes or requires discrimination against same-sex couples or their families or on the basis of sexual orientation, gender identity, or gender expression, including any law that creates an exemption to antidiscrimination laws in order to permit discrimination against same-sex couples or their families or on the basis of sexual orientation, gender identity, or gender expression. (California Government Code section , subd. (b)(1).)

29 9E. Approve Travel Request for the Annual International Association of Festivals and Events (IAFE) Convention in San Antonio, Texas The Legislature created exceptions in AB 1887 that allow travel to these states. Specifically, AB 1887 does not apply to state travel that is required for any of the following purposes: 7. For the protection of public health, welfare, or safety, as determined by the affected agency, department, board, authority, or commission, or by the affected legislative office. (California Government Code section , subd. (c)(7).) This is the first time that the IAFE convention is being held in Texas. Texas is one of the ten states that have been identified by the California Attorney General under California Government Code section , subd. (e)(1).

30 9E. Approve Travel Request for the Annual International Association of Festivals and Events (IAFE) Convention in San Antonio, Texas Participation in the annual IAFE convention provides necessary training not available through any other conference. There are numerous sessions covering vital issues related to health, security and safety. It is critical that staff continue to receive this training to ensure the safety and security of our over 4 million guests and staff that come to the OC Fair & Event Center annually. RECOMMENDATION: Approve staff to travel to the Annual International Association of Festivals and Events Convention in San Antonio, Texas, November 25 28, 2018

31 9F. Discussion to Schedule an October Board and Community Master Site Plan Workshop A Draft Master Site Plan Concept was presented by the consultant to the Board of Directors on April 26, At that time no decision was made regarding next steps. The Master Site Plan Committee would like to gather additional input from the community and Board of Directors on the plan before moving forward. The Master Site Planning Committee s goal is to finalize the Draft Master Site Plan Concept in November. Once a final Draft Master Site Plan concept is approved, staff would begin the CEQA process. RECOMMENDATION: To hold the October 25, 2018 Board of Directors meeting in the afternoon, beginning at 3:00 p.m. and ending the Board of Directors Meeting, with a Master Site Plan Public Workshop beginning at 6:30 p.m.

32 9G. Engage CFFA to Conduct an Infrastructure Analysis of the Equestrian Center and Budget for Property Wide Infrastructure Analysis As part of the OCFEC Master Site Plan process and Board of Directors discussions related to the evolution of the Equestrian Center and current physical conditions of the facility; a comprehensive facilities assessment should be completed. As a State of California property, the OCFEC is required to use the construction management services of CFFA (California Fairs Financing Authority), a division of CFSA (California Fairs Services Authority). CFFA, if requested, will engage appropriate professional services necessary to conduct this assessment: architectural, mechanical, electrical, structural and civil engineering review. CFFA will develop the scope of work to review the condition of all Equestrian Center facilities and buildings to determine what can be renovated or what needs to be replaced and develop budgets for the same.

33 9G. Engage CFFA to Conduct an Infrastructure Analysis of the Equestrian Center and Budget for Property Wide Infrastructure Analysis RECOMMENDATION: 1) Approve an unbudgeted expenditure for the 2018 budget of approximately $120, and authorize staff to engage California Fairs Financing Authority (CFFA) to finalize a full proposal and begin conducting an infrastructure analysis for the Equestrian Center. (See attached correspondence from CFFA dated September 7, 2018). RECOMMENDATION: 2) Approve staff to engage California Fairs Financing Authority (CFFA) to develop a scope of work and a budget to conduct a property wide infrastructure analysis for the OC Fair & Event Center. This would be an expenditure for the 2019 operating budget.

34 9H. Discussion on Storage Solutions for OCFEC Equipment, Supplies and Props RECOMMENDATION: We have historically utilized the three livestock barns, the two livestock tents and miscellaneous areas around the grounds for storage and housing OCFEC equipment, supplies, props and storage containers. During the Fire Marshal inspection in May 2018, a correction notice was given to us to remove the two livestock tents. We are currently utilizing parking Lot G to place storage containers for materials and have erected a new temporary tent, which has been approved by the Fire Marshal for 180 days.

35 9H. Discussion on Storage Solutions for OCFEC Equipment, Supplies and Props Possible Long Term Storage options: 1. Identify off-site rental of a storage building offering 10,000 to 15,000 square feet. The average cost of warehouse space is $1.00 to $1.25 per square feet per month, and if rented annually would have a budget impact in excess of $100,000 (plus transportation costs of moving materials back and forth). 2. Build a permanent storage/multipurpose building on OCFEC property (example: Butler Building up to 20,000 square feet). This could be a multi-purpose building that could be used during the annual fair for agriculture programming and for storage year-round at the conclusion of the annual fair. Location and budget to be determined. 3. Evaluate options to utilize space within the Equestrian Center footprint.

36 9H. Discussion on Storage Solutions for OCFEC Equipment, Supplies and Props RECOMMENDATION: Provide staff direction to pursue options for long term storage solutions and bring back recommendations as part of the 2019 budget.

37 9I. Board Chair and Vice Chair Nominating Committee INFORMATION ITEM: The Board Chair will appoint a two person task force to deliberate and make a recommendation for Officers of the Board for the upcoming year. The Nominating Task Force will present their nominations at the October 25, 2018 meeting of the OCFEC Board of Directors.

38 9J. Board Chair and Vice Chair Nominating Committee INFORMATION ITEM: Staff will present the 2018 OC Fair wrap-up presentation.

39 9J OC Fair Wrap-Up Presentation INFORMATION ITEM: Staff will present the 2018 OC Fair wrap-up presentation.

40 10. Closed Session A. Pending Litigation The Board will meet in closed session to consult with legal counsel regarding the following pending litigation. [Gov. Code section 11126(e).] i. To confer with and receive advice from legal counsel regarding potential litigation involving the 32nd District Agricultural Association. Based on existing facts and circumstances, the Board of Directors will decide whether to initiate litigation. ii. To confer with and receive advice from legal counsel regarding potential litigation involving the 32nd District Agricultural Association. Based on existing facts and circumstances, there is significant exposure to litigation against the 32nd District Agricultural Association.

41 11. Board of Directors Matters of Information

42 OC Fair & Event Center Costa Mesa, California