City Manger’s Office
www.santa-ana.org/city-managers-office
Item # 8
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: Receive and File Bowers Museum Report
AGENDA TITLE
Receive and File Bowers Museum Report
RECOMMENDED ACTION
Receive and file.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
During the budget discussion at the May 16th Special City Council Meeting, City Council expressed interest in obtaining information regarding Bowers Museum budget and operations.
History:
The City of Santa Ana owns the Charles W. Bowers Memorial Museum, originally operated as a city-run museum from 1936 to 1987. In 1987, the Charles W. Bowers Museum Corporation (Corporation) was organized for the purpose of assisting the City in managing and operating the museum. The City and the newly established Corporation entered into an agreement April 20, 1987 for the Corporation to undertake full operation and maintenance of the Museum on behalf of the City for a period of 20 years. The Operating Agreement stipulated that the City would provide operating assistance, which would increase in accordance with cost of living for the first 10 years, and then decline to zero over the second 10 years. The agreement was amended in 1999 to stabilize funding for a period of five additional years before beginning to decline.
In 2001, the City and the Corporation determined that it was not economically feasible for the Corporation to operate the Museum at a mutually acceptable level of programming and maintain the premises appropriately without permanent economic participation by the City. The City entered into an Amended and Restated Operating Agreement on June 18, 2001 (Exhibit 1). The agreement is for the term of May 1, 1987 through April 30, 2026, and the Corporation has the option for two 10-year extensions,
Receive and File Bowers Museum Report
June 4, 2024
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with the first option to extend through April 30, 2036 and the second option to extend through April 30, 2046.
City Responsibilities (summary): In exchange for the Corporation's operations and management of the Museum, the City provides an annual payment to the Corporation to cover the estimated cost of maintaining the premises. This includes Regular Maintenance and Repair and Allocable Internal Administrative Costs. Pursuant to the contract, for the Fiscal Year 2001-2002, the compensation was established at $1,180,800. Subsequent compensation amounts have been determined each fiscal year by the City Manager and approved by the City Council through the budget process, with increases based on the Consumer Price Index. The request for FY 2024-2025 is $1,702,344 (Exhibit 2). The following are the contract-based allocations for the prior four years:
•FY 20/21 – $1,456,630
•FY 21/22 – $1,456,630
•FY 22/23 – $1,525,100
•FY 23/24 – $1,656,300
In addition to the annual compensation, the City and the Corporation are to negotiate separate agreements for Capital Repair and Replacement. The Corporation is responsible for carrying out all Capital Repair and Replacement of the Premises and the Associated Facilities subject to funding approved by the City, or unless otherwise agreed by the City and the Corporation. In FY 2022-2023, Museum investment in Capital Repair and Replacement was $1,025,000.
Detailed definitions for “Regular Maintenance and Repair,” “Allocable Internal Administrative Costs,” and “Capital Repair and Replacement” are described in detail in the Amended and Restated Operating Agreement.
Corporation Responsibilities (summary): The Corporation is expected to operate and manage the Museum in competently, efficiently, and comparable to other well-managed museums. This includes maintenance, activation, staffing, and management of exhibits and collections.
•Operation and Maintenance Standards: The Museum operation must meet specific standards including displaying exhibits of artistic, scientific, cultural, or historic interest, maintaining the premises, and managing repairs and replacements. While the City contributes financially to the maintenance, repair, and capital repair, it is the Corporation’s contractual obligation to provide the services.
•Activation (Permitted Activities): The Corporation is allowed to conduct various activities on the premises, including fundraising events, meetings related Receive and File Bowers Museum Report
June 4, 2024
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to museum activities, sponsored events, operation of a shop, restaurant, and renting out facilities for private events.
•Museum Staffing Levels: The Corporation must maintain adequate staffing levels and ensure the high standard of service to the public. It is responsible for the employment terms and conditions of its staff or contractors. There is a provision for city officers and employees to perform museum-related services under separate agreements.
•Exhibits, Materials, and Collections: The Corporation has full control and responsibility for the custody, display, storage, and disposition of exhibit items, collections, and research materials. It also manages the interior design of the museum buildings to accommodate exhibits appropriately.
City Involvement and Collaboration: The City Manager has met with the Corporation President to strengthen relationships and participation by the City. The City Manager or their designated representative has the right to attend all meetings of the Board. They are also allowed to participate in discussions to the same extent as the regular members of the Board. They may engage in conversations and contribute their opinions or insights. While this is not a voting role, this provides opportunity for the City’s vision to be incorporated into the programing. Board meetings occur on a quarterly basis, and the City will have consistent representation moving forward.
Additionally, at least two members of the Board must be residents of the City. This is a standing requirement to ensure that the Board has representation from individuals who live within the City. Currently, there is one vacancy. Our City team will work with the Corporation to ensure that the second seat is filled by a local resident.
City Benefits: When the Corporation was first established, it was due to the City’s understanding that a separate entity operating the Museum would provide flexibility in staffing, programing, and fundraising abilities. The Bowers has now grown to be the largest Museum in Orange County. It is accredited by the American Alliance of Museums, the highest national recognition afforded the nation’s museums.
Accreditation signifies excellence to the museum community, to governments, funders, outside agencies, and to the museum-going public. Bowers Museum was initially accredited in 1993. An Introduction – Bowers Museum provides an in-depth overview of the Museum operations (Exhibit 3). While the City contributes annually for the maintenance of the museum, it is a fraction of the overall $5 Million plus annual operation budget.
One of the most notable benefits includes the $15 million expansion of the North Wing, which added 30,000 square feet to increase the exhibition space. The funds for this construction were fundraised by the Corporation.
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The Bowers Museum has an approximate value of $70 million dollars in real estate assets. Upon termination of the operating agreement with the Corporation, the interest of the Corporation including all real estate, personal property, and donated or loaned to the Corporation for museum purposes shall be turned over and become the property of the City.
Bowers Museum employs 66 staff, 26% of which are Santa Ana residents, including the current Corporation President. Local artists are also contracted by the Corporation to provide arts and education at the Museum for their annual programing. The artist range to novice to experienced professionals, thus allowing opportunities for showcasing of art with diverse artist backgrounds and experience.
Bowers Museum provides free year-round programing including family friendly events such as Day of the Dead, Celebration of India, Lunar New Year, and Mehregan Persian Festival (Exhibit 4). City of Santa Ana residents receive free general admission on Sundays year-round. Additionally, beginning March of 2024, Bowers Museum has extended free admission every day through September 8th for Santa Ana residents. (Exhibit 5).
Sample of 2023 Bowers Museum Activities:
•Year round, General Admission is free for Santa Ana residents every Sunday and in 2023 over 1,600 residents visited through this offering. •Free family festivals hosted more than 27,500 residents for free live performances, free art projects, free face painting, and free treats to celebrate a new culture each month of 2023, including our annual Dia de Los Muertos Festival and Cinco de Mayo.
•Free school tours, bus reimbursements, and art lessons including gallery tours led by highly trained docents and art projects led by teaching artists for over 1,752 students. This also includes a special partnership with at-risk youth from Project Kinship, to whom the museum offers free tours and free use of its space for graduations and fundraisers.
•Free senior enrichment workshops for 1,170 Seniors from Santa Ana through the Anne’s Treasures program, held twice every month. Program includes free breakfast, teaching artist led workshops with giveaways that participants take home (i.e.: tote bags, scarfs, days of the dead skulls painting, etc.) and quarterly free tours of our featured exhibitions.
•Participated in nine offsite City of Santa Ana free community events, providing free art projects and giveaways for hundreds of Santa Ana participants.
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•Three free rental events and four half - off for Santa Ana City and Department of Education events for over 1,000 people ranging from Police award ceremonies to school fundraisers, teacher meetings, and more.
•Two free student art exhibitions: one held in partnership with students from Orange County Department of Education (of which approximately 1/3 were SAUSD) and one held in partnership with Santa Ana Unified School District in the historic wing of the museum which included the artwork of students who enjoy free tours and art lessons + free admission for parents for two weeks. •Two free Evening for Educators (of which approximately half of the teachers are SAUSD) for over 200 Orange County teachers.
•Hosted four Community Blood Drives for free in partnership with Red Cross for hundreds of local donors.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT(S)
1. Amended and Restated Operating Agreement
2. FY 2024-2025 Budget
3. An Introduction - Bowers Museum
4. 2024 Schedule of Events
5. Free Santa Ana Summer Flyer
Submitted By: Sylvia Vazquez, Deputy City Manager
Approved By: Alvaro Nuñez, Acting City Manager