Item No.
STAFF REPORT
DATE: April 27, 2026
TO: Honorable Mayor and City Council
FROM: Dr. Sean M. Moore, City Manager
PREPARED BY: Megan Wolfe, Director of Comm ty Services
SUBJECT: YPAC Transition Plan
RECOMMENDATION:
That the City Council:
1. Maintain current operations with strategic modifications, or;
2. Transition to a rental -focused model through a partnership with Props AV, or;
3. Transition to private management through Request for Proposals and Qualifications RFP/RFQ process, or;
4. Sell/close the facility, or;
5. Provide further direction to staff.
BACKGROUND/DISCUSSION:
The Yucaipa Performing Arts Center (YPAC) was developed as a community investment to enhance cultural arts, provide entertainment, and serve as a regional destination venue as an anchor.
Prior to its opening in 2019, the City explored an operational model that included contracting with a private management company to oversee day-to-day operations, bookings, and programming.
This approach was intended to leverage industry expertise and reduce the operational burden on City staff and the General Fund. The City agreed to pay the operator $588,750 for operating costs, plus pay for utilities (approximately $70,000), maintenance (approximately $70,000), and staffing costs associated with contract and maintenance management (approximately $100,000) costs.
However, the private management model proved unsuccessful. Challenges included financial sustainability, limited community integration, and misalignment with the City's goals for programming. As a result, the City transitioned operations in-house under the Community Services
Department to ensure greater oversight, alignment with community priorities, and improved accountability.
Since that transition, the City has continued to refine operations, expand programming, and foster community partnerships. The YPAC has served as a venue for acting and art classes, local organizations, regional performers, and City -led events, while also supporting economic activity in Uptown Yucaipa.
The YPAC building is currently used for much more than a performing arts center. Maintaining operations allows the City to use the facility for special events in the uptown, office space for Community Services staff, City Council workshops, town hall meetings, and county meetings.
Previous City Councils recognized the net cost as a strategic investment that allowed the City to maintain programming control, supporting economic activity in Uptown while mitigating traffic and noise impacts on adjacent neighborhoods.
FY25 operational data includes approximately 232 annual events, 25,000 attendees, and facility utilization rate of 53%. Attendance, according to Placer.ai and Ticketmaster, includes both local residents and visitors from surrounding communities, some coming as far as San Diego and the High Desert, contributing to increased activity in nearby restaurants and retail establishments during event periods (placer.ai). Direct City oversight has also enabled staff to manage event scheduling, amplification, and operational standards to minimize impacts to adjacent residential areas.
In light of recent feedback from City Council and ongoing evaluation of City resources, staff has prepared the following operational scenarios for City Council consideration:
Option 1: Maintain Current Operations with Strategic Modifications (Net Cost estimate of $400,000)
Under this option, the City would continue to operate the YPAC with the current in-house model, using targeted strategic modifications to improve cost recovery and operational efficiency. This includes continuing City -produced programming and events while enhancing marketing efforts, strengthening sponsorship opportunities, and expanding partnerships.
Staff would also pursue increased revenue generation through concessions and coordinated efforts with the Yucaipa Community Foundation for alcohol sales, as well as maximizing in-house food and beverage opportunities. These efforts are intended to incrementally reduce the net cost of operations while maintaining the existing level of service and community access.
Considerations:
• The City would retain full control over programming, scheduling, and operational standards
• Maintains the current balance between community programming and economic development objectives in Uptown
• Requires continued General Fund support to sustain operations
Option 2: Rental -Focused Model Public -Private Partnership (Net Cost estimate of $100,000) Under this option, the City would transition the Yucaipa Performing Arts Center (YPAC) to a more rental -focused operational model by establishing a strategic partnership with a qualified private entity to support booking, production, and client acquisition services. This model is intended to increase cost recovery while maintaining City oversight of the facility.
The proposed partnership with Props AV is based on the firm's demonstrated experience and familiarity with YPAC operations. Props AV has provided production and technical services at the facility for approximately three years and has developed a working knowledge of the venue's systems, capabilities, and operational needs. The existing relationship positions Props AV to immediately support expanded rental activity without the delays or learning curve associated with onboarding a new vendor.
Pursuant to the City's purchasing policies, competitive procurement requirements may be waived in circumstances where such procedures are not practical or would not yield additional value to the City (City of Yucaipa Purchasing Policy and Procedures Section 5.2.24.060.C). In this case, staff has determined that a competitive RFP/RFQ process may not be practical due to the specialized nature of YPAC operations and the immediate need to improve cost recovery.
The partnership would be formalized through a professional services or operator -support agreement, the structure of which would be developed in coordination with the City Attorney's Office and brought forward for City Council approval.
Considerations:
• The City would retain ownership and overall control of the facility • The partner would support efforts to rent the venue as a regional event space • The facility would be positioned to attract private, corporate, and entertainment rentals • City staff involvement in booking and production would be reduced, allowing for a more efficient allocation of resources
Option 3 : Transition to private management (Net cost estimate of $250,000) Under this option, the City would initiate a formal RFP/RFQ process to solicit a qualified private operator to assume day-to-day management of the YPAC, including programming, bookings, and operational oversight.
To ensure clarity and alignment with City priorities, the RFP/RFQ process would include defined framework and performance expectations. These would be further refined in coordination with the City Attorney's Office but are anticipated to include the following:
• Guaranteed availability of the facility for City -sponsored events • Maintenance and Utilities Allocation
• Clearly defined responsibilities for routine maintenance, janitorial services, and facility upkeep
• Indemnity, Insurance, and Risk Management
• Defined booking hierarchy to balance revenue -generating events with community -based programming
• City approval or oversight of certain event types to ensure alignment with community standards
Considerations:
Eliminates some operational costs
May result in loss of community programming and cultural/arts classes and activities Potential long-term impacts to City investment and Uptown vitality Option 4: Full Closure of YPAC (Net cost estimate unknown at this time*) *Known costs reallocated and office space for five staff needed Under this option the YPAC would cease all operations and a long-term strategy for the use or disposition of the asset would be created. If selected the following is a list of potential pathways for consideration:
• Sell the Property
• Repurpose property for Municipal Use
• Close the Facility
Considerations:
• Eliminates ongoing operational costs associated with programming and staffing • Discontinues City -operated programming and community events, and associated economic activity in Uptown
• Prior to implementation, additional analysis would be required, including:
• Legal authority and required disposition process
• Valuation of the asset
• Evaluation of whether the property is needed for an alternative municipal purpose Historically, the YPAC was a valuable community asset that contributed to the City's cultural identity, community engagement, economic vitality and was the result of a community needs assessment. As the City Council evaluates the most appropriate path forward, each operational model presents varying levels of service, financial impact, and organizational responsibility.
In order to execute City Council's directive of cost recovery, staff has secured bookings and rental agreements at the YPAC through FY27. Any transition in operations would require the evaluation of contractual and operational obligations, including but not limited to cancellation liability, customer notification requirements, refund exposure, and timing of operational handoff. Staff would coordinate closely with the City Attorney's Office to ensure compliance and risk mitigation.
Existing bookings through 2027 would be incorporated into any transition plan to minimize disruption and uphold contractual commitments.
There are three full-time positions assigned to the YPAC. Should City Council choose option three or four, those positions will be reevaluated in accordance with the remaining Community Services Department.
FISCAL IMPACT:
In FY25 the net General Fund cost of the YPAC was approximately $580,000, inclusive of staffmg, programming, utilities, maintenance, and administrative support.
To support City Council decision -making, the following is the estimated net cost of each option:
• Option 1 - $400,000
• Option 2 - $100,000
• Option 3 - $250,000
• Option 4 - Unknown at this time
Attachment:
1. YPAC Agreement with M&M Group
ATTACHMENT 1
CITY OF YUCAIPA
AGREEMENT FOR PROFESSION AI. OPERATING SERVICES
FOR THE YUCAIPA PERFOR-NI ING ARTS CENTER
On this 29e' day of Nfay, 2018, the City of Yucaipa, a municipal corporation, hereinafter referred to as "City," and The M&NI Group, hereinafter referred to as "Operator," (collectively, the "parties") hereby mutually agree as follows_
I. Scope of Agreement
A. Employment of Operator
City hereby contracts with O-perator in accordance with the terms of this Agreement to provide professional operating services for the Yucaipa Performing arts Center (` -T'PAC"j as set forth in Exhibit A, Scope of Services- B. Agreement Documents
The complete Agreement inclb.Wes all of the Ar ree;ttert documents including. but not limited to, the Scope of Services (Exhibit A) and Professional Operating Services Proposal (Exhibit B), this Agreement and all other documents, texts and other items incorporated by reference in any of the aforementioned Agreement documents. The specific terms and conditions of this Agreement shall control and have precedence over any contradictory or inconsistent terns and conditions included in the afo mentionec Agreement documents and shall be controlling in ques0ris of interpretation.
C. Severability of Provisions
If anv provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby if such remainder would then continue to conform to the terrns and requirements of applicable law.
D. Commencement of Senices
Operator shall com--nence work under this Agreement on the date specif;ed in a Notice to Proceed issued by City. Such Notice to Proceed is expected to be issued within thirty (30) days from the date of City's execution of this agreement_ E, Term of Agreement
This Agreement shall tale effect on the date of execution of both parties, and shall remain in effect throw the last clay of Fiscal year 201912020, with the option of two erne -year extensions.
In the event the parries agree to extend the team of the Agreement, all term,, conditions, and provisions thereof shil retrain in effect and apply during the extension period, unless otherwise mutually agreed to in writing by both parties_ �Agremcn, for Profmior-4 Operating Semces, the M&-%t Group Page f Yuca:ta Perfonni" Arm Center
of Yucai
F. Failure to Perform
F311ure of Operator to commence and;cr provide the services specified in this Agreement may result in the Agreement being terminated by City- G. Compliance With Laws
In the performance of this AgreenlerL Operator shall abide by and conform to aly &-ld all applicable laws of the United States. the State of California. the Municipal Code and Ordinances of City. Operator warrants that all :vork- done under this Agreement will he in strict compliance with all applicable safety rales, ]aws, statutes. orhnanLeS, regulations, and practices.
Scope of Senices
The services of Operator shall be those services set forth the Scope of Senices. attached hereto and made a part of this Agreement by reference as though set forth in full herein. 'No change front said scope of work- shall be made unless so authorized in writing by City` or its designated representative.
The Scope of Services includes, but is not limited to, managing, h-taffitig, promoting, operating, producing, Went buying (excluding the headline entertainment for the 2019 Yucaipa Music and Ara Festival (YINtAfl) and overseeing all YPAC programming and facilities, as negotiated and directed by City.
III. Employees
Operator, as part of its professional operating services, shall employ, a: Operator's oum expense, technicians ard professionals properly skilled and licensed and insured in accordance with City requirements, Partners, managers, or other super-visory staff and specialists may be replaced if those personnel leave Operator's employment or otherwise become. unavailable to perform his or her duties. The personnel may also be changed for other reasons with the express prior written permission of City. City retains the right to approve or reject replacements. Other staff personnel may be changed at the discretion of Operator, provided that any replacement has substantially the same or better qualifications or experience than his or her predecessor.
City may, at its discretion, request a replacement in supervisory anctor above -level personnel. Operator shall take all reasonable steps to fulfill such requests.
INF. Standard of Performance
Operator warrants that it has the professional skills, experience and knowledge necessmy to perform the work under this Agreement. It is understood that City relies upon Operator's warranty to perform its work in a skillful and professional mauter.
Acceptance by City of the ,.%ork performed under this Agreement does not operate as a release of Operator from such professional responsibility for the work performed, It is further understood and agreed that apprised operator ' is appris of the scope of the work - to be performed under this Agreement and Operator agees that said work- can and shall be performed in a fully competent manner.
Agr=men- _"ur Professional Openting Scrvi=, ThtV,&.M Group plage 2 Yucaipa Per*3r:=nzAm Center
City of Yucaipa
V. Independent Contr2etor
The performance of Operator's 5enices hereunder shall be in the capacity of an independent contractor and not as, an officer, agent, or employee of City. In consideration for the compensation paid to Operator by City, Operator agrees that City shall not be liable or responsible for any benefits, including, but not limited to, Worker's compensation, disability, retirernent:i life, unemploNTrient, health or any other benefits for Operator, its officers, employees, agents, or subcontractors. Operator agrees that it shall not sue, or file a claim petition or application against City or any of its officers, employees, agents, representatives or sureties with regard to any of the aforementioned benefits, and shall defend and indemnify City from al i claims. causes of action, liability andi damages arising therefrom,
VI. Interest of Operator
Operator (including principals, associates and professional employees) covenants and represents that it does not now have any investment or interest in the real pW-rty covered by this Agree—nient, and shall not acquire arty interest. direct or indirect, in the area co-vered by this A
greement or any. other source of income,
ncome, interest in real property
or investment which would be affected in any manner or degee by the performance of Operator's services hereunder. Operator further covenants and represents that to Operator's professional, knowledge. 'information and belief no person having any such L-iterest shall perform any services under this Agreement.
Operator may be a designated employee within the meaning of the Political Reform Act, and, if so notified by City, will comply with all reporting and requirements of City with respect to Operator's financial interests.
N-111. Prohibited Interests
Operator maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Operator, to solicit or sezure this Agreement. Further. Operator warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Operator., any fee, commission, percentage, brokerage fee, gift or Other consideration resulting contingent upon or resu_, from the award or making oil this Aggrt,=ent- For breach or violation of this warranty, City shall have the right to rescind this Agreement, without liability. For the term. of this Agreement, no member, officer or emplo}ee of City, during the term of his or her service with City, shall have any direct interest in this Agreerment, or obtain any present or anticipated mattnuial beriefitaTisinizz therefi-orn.
VUL Required Licenses and Permits
Operator represents and warrants to City that it has all licenses, permits, qualifications. insurance and approvals of whatsoever nature, which are legally required of Operator and any of its sub -contractors to practice their profession, Operator shall, at its sucile cost and expense, keep -eq - ui:-ed permits and insurance in effect at all times, Operator shall not perform any activity or provide any se ices or coeds at the YPAC prior to obtaining L -r rer. elx ing all required local, state or federal fl- 7 Pry ssur l Ope,-a:i-.g SerV-:CS. Tt: Nl&--Nf GfOLP 3 Yucaipa Fee'zrrunz g Am Center
of Yucal
licenses and permits to practice its profession and perform the work required by this Agreement. This may include, but is not limited to, any required permits or licenses from the County Health Department City of Yucaipa Business Licenses and Permits.
California Board of Equalization Reseller*-,- Permit.. California Department of Alcohol and Beverage Control. and Theatrical andor music perffirmance rights, as appropriate, LX. Assigincent and Subcontracting
Tice parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Operator.
Assignments of any or all rights, duties or obligations of Operator under this Agreement will be permitted only with the express written consent of City. Operator shall not subcontract any portion of the work to be performed under this Agreemen-, without the wrimen authoHL-atiori of City. If City consents to such subcontract, Operator shall be +'ully responsible to City for all acts or omissions of the subcontractor. Nothing M- this Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of City For the payment of any monies due to any such subcontractor other than as required by lalw.
X. Operator's Compensation
A. Compensation
City shall corn.perisate Operator an amount not to exceed S-588,750 for the term of the Agreement for operating costs-
B. Revenue Sh"g Strategy
Operator will receive 35% of net revenue for the term of the Agreement, and City -will receive the balance of all net revenue. Net revenue shall be calculated at the close of each fiscal year by subtracting gross YPAC expenditures from gross YPAC revenues.
C. Method of Payment
Operator shall submit monthly biffings, to City describing the work performed during the preceding month, Operator's bills shaU include a brief description of the senices performed, che date the smices; were verfonned, the number of hours spent and by whom, and a description of any reimbursable expendirurc. City shall pay Operato'r for an undisputed invoice no toter than thirty (3ff) days after approval of the invoice by City Staff. City agrees to use its best of to noti& Operator of any disputed invoice amounts within, ten (10) clays of the receipt of eacit invo lee. Howev'er.Cily's fititure to timely notify Opentor of a disputed amount shall not be deemed a waiver of City's right to challenge such -w-nount or percentage.
D. Limitation
No payment for any work performed bN, Operator shall, exceed the limits established in foregoing provisions ofthis Aereement-
E. Additional Services
City agrees to compensate Operator for additional services if authorized or ccrifirmed Agrremew for Profm- ionall Operating Services. TIcIM&M Gmip Page 4 Yucaipa Performing Arts Center
in writing by City, prior to performance of the additional services, and in an amount agreed upon in writing by City and Operator prior to performance of the additional services. Additional services are defined as services required as a result of activities beyond the Scope of Service (Exhibit A)-
F. Disputed NVork
In any case where Operator believe extra compensation is due for work Or SeT-MeS not clearly covered in this Ag geement, or not ordered in writing by City, as extra services, Operator shail, immediately notify City in writing of its intention to make claim for such extra compensation before Operator begins the work- on which Operator bases the claim, If such notification is not given, ardor if City is not afforded an opportunity to negotiate the approp-ate fee for such extra services, Operator is deemed to have agr,.--.d to waive the claim for such extra compensation.
Such notice by Operator to City shall not in any .vay be construed as proving the validity of the claim. The claim must be approved, in writing, by City before Operator commences any work for which it expects extra compensation.
G. Unauthorized Work
Work done without the knowledge and written authority of City will be considered Z
unauthorized and at the expense of OperatoT, and will not be paid for by City. )a Termination of Agreement
A. Termination
This .Ikgreemcnt may be terminated by either part' upon thirty (30) days' written notice to the other party, in the event of a substantial failure of performance by such other. party. Upon termination, a -it materials. documents and vvork product produced pursuant to this Agreement by or for Operator andlor in Operator's possession SMI immediately become the property of City, In the event Operator fails to perform ,.%-ork, as defined in Subsection C below, City may provide five (5) days* lkntten notice of terimination-
B. Payment Upon Termination
In the event of termination. City shall pay to Operator as full payment for all scnices performed that amount which has been previously approved and actually incurred by (343-,Tator at the time of terrninatiom
In ascertaining the ser%ices, actually rendered hereunder up to the date of termination of this Agreement, consideration shall be giver. to both completed work ----d work in process of completiom Work- in rro
* gress shall be paid on a pro-rata basis based upon
the percentage of the work- actually acl-omplished.
C. Failure to Perform Work
if Operator should be adjudged bar-kr-ipt or should make a general assig-im ent . for the benefit of creditors, if a receiver should be appointed on aCLOU111 of insolvency of Operator; if Operator should refuse or should fail- except in cases for which ar extension of time is provided specifi&-Iy by City, to supply adequate properly skilled workm_oE_p -.T rn--.cri.Ils c_��brm cblip,:ions under this Aereement within 4 en P—,e 5 ICnT for Pro feimior-ai CI pewing S T-.:� M&N r-, I o-D 2Z Si a P crb rmg arcs C c r. c e r
City Df Yucajpa
the time herein required_, in a good work manner; or if Operator .should fail to make prompt payment to subcontraLtors, or fcir material or labor, or disregards laws. ;ordinances or the instruction_ of City or its duly authorized engineers, inspectors or representatives, or othen%ise �iolate any provision of this Agreement, then City, upon the certification of its designated representatives that sufficient cause exists to justify such action, may, Without prejudice to any other right or remedy and after giving Operator five (5) days written notice, terminate this Ageement and finish the work by,whatever methods it may deem appropriate and expedient. In such case, Operator shall not be entitled to receive any further payment except for such work~ as City d-ms had been satisfactorily- completed prior to ternnination.
XII.. Indemnity
A. Indemnity for Professional Senices
In connection with its professional seniees, Operator shall defend. hold harmless and indemnify City, and its elected offcials, officers- employee{, servants, designated volunteers, and agents sen-ing as independent contractors in the role of Cite or agency officials, (collectively, `'Indemnitecs"), from any claim. demand, damage, Liability, loss, cost or -expense (collectively, "claims"), including but not limited to death or injury to any person and injury to any property. arising out of, pertaining to. or relating to the negligence, recklessness, or willful misconduct of Operator or any of its officers, employees. cons: Rants, subcontractors or agents in the performance of its professional scn-ices tender tlds Agreement. Operator shall defend the Indernnitees in any action or actions filed in connection wab any such claims with counsel of C'itv's choice, and shall pay all casts and expenses, including acm—al attorney's fees, incurred in connection with such defense.
B. Other Indemnities
In connection with all claims riot covered by the Indemnity, for Professional Services section (Subsection A, above), Operator shall defend, hold harmless and indemnify City, and its elected officials, officer, employees. servants, designated volunteers, and agents serving as independent contractors in she role of City officials, (collectively, "lndernnitees'), from any claim, demand, damage, liability, loss, cost or expense (eollecti cly. `.claims"), including, but not limited to death or injury to any person and injury to any property, arising out of, pertaining to. or relating to Operator's negligence or willful misconduct in the performance of this Agreement.
Operator shall defend Indemsnitees in any action or actions flied in connection with arts- such claims with counsel of City's choice, and Shall pay all costs and espenest including actual attomey's fees, incurred in connection with such defense.
XII:I, Insurance
Operator shall procure and maintain, 'tor the duration of the agreement, insurance against claims for injuries to parsons or damages to property, which may arise from or in connection with the performance of the work. hereunder by Operator, it{ agents. representatives, employees or subcontractors.
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A. Minimurn Scope of Insurance
Operator shall provide insurance in scope, an-ounis, and coverages as required by City. including, but not limited to, any of the following as applicable:
1, 1.15UTance SeicesOffice Commercial General Liability coveraite (Occurrence Form CG 003 1):
2 ,'87) covering
Insurance Senices Office Form Dumber CA 0001 (Ed-
1. Automobile Liability, Code I (any auto),
3. lVarker's Compensation insurance as required by the State of California and Employers' Liability Insurance. and
4. Errors and O-nissions hability, insurance appropriate to Opt a tor's Mfession- B. NtWmuna Limits of Insurance
Operator shall maintain limi-.s no less than:
1, General Liability: SLOW,per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance orother fora. uith a general aggre-vate lira is used, either the general aggregate limit shall apply separately to this project- ovation or the general aggregate limits shall be twice the required occurrence limit ($2,1W,000)
2, Automobile Liabili-ty- S1,000J)00 per accident for bodily injury and property damage,
i. Empoyer's Liability- 51,000, per accident for bodily injury or di.sease.
4. Worker's Compensation insurance as required by the State of California are Employes Liability Insurance.
5. Error,-, and Omissions Liability- S 1,000.00D to be carried by Operator and all licensed professional subcontractors, if appropriate-
C. Deductibles and Sell -Insured Retention
A.nv deductibles or self -insured retention must be declared to and approved by City.
At the option of City, the insurer shall reduce or elinuate such deductibles or self- insured. retention that pertain to City, its officers, officials, employees, agents and Volumeers,
D. Other Insurance Provisions
The general, liability and automobile liability policies are to contain, or be endorsed, contain, the following provisions:
City, its officers, officials, employees, agents and volunte-ers are to be covtv:d -as insureds .%ith respect to liability arising out of automobiles owned, leased. hired or berrowed by or on behalf of Operator vith respect to liability arising out of we-,k or operations per.formed by or on behalf of Operaton and %ith respect to premises mvned, occupied or %:sed by Operator, including materials. parts o- equipment famished in connection with such work or operations, General liability coverage shall be provided in the form of an erdorsement to Operator's insurance, or .ls a separate owners policy. The coverage shall. contain no special limitations on the scope of protection afforded to City, its officers, officiaLs, Agrtemert or Prole anal Optra'-ing Scnnkes, The M&M Grc up pa: c Yuzaipa PcrfanningAi-- Center
City of Yucaipa
employees, agents or volunteers.
2. For any clam -is related to this project., Operator's insurance coverage shah be primary insurance as respects City, in, officers, officials, employees. agents and volunteers_ Any insurance it Self-insurance maintained by 6t%, Its officers, officials, employees, agents or volunteers shall be excess of Operator's insurance and shall not contribute with it,
3. Any failure to comply with reporting or other provisions of the insurance policies, including breaches of wari-arities, shall not affect coverage provided to City, its officers, officials. employees, agcntzs or volunteers.
4. Operator'; insurance shall apply separately to each insured against whom a claim is made or sW-. is brought, except %;-ith respect to the limits of the insurer's liability.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in Urnits, except after thirty (30) days prior N4:ritten novice, by certified mail return mccipt requested, has been given to City-
E. Acceptabi.liqe of Insurers
Lrisura.rice Is to be provided by insurers with a current A-M. Best's rating of no less than A:Vl1, unless otherwise acceptable to and agreed upon in wrifing by, City.
F. Verification of Coverage
Operator shall furnish City with original certificates and amendatory endersernerti affecting coverage required by this clause. The endorsements should be on forIns provided by City or conforming to City requirements. All certificates and endorsements are to be received and approved by City before work under this AQ.-e-emert commences.
City reserves the right to receive and maintain complete, ceTtified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.
XIS". NVorker's Compensation
By executing this Agreement, 0-.x-rator hereby certifies that it is aware of the provisions of Section 370() of the Labor Code, which meuires every employe-, to be insured against liability for NN"orkeCs Compensation, or to undertake self-111SLzance in accordance with the provisions of the Labor Code, and will comply uiEh such urovisions before commencing the performance of the work- under this Agreernew.
Operator's failure to compiy with any provision of the Labor Code is the sole responsibility of Operator, and shall not make City liable for any claims arising thereunder or in relafion thereto,
Xi'. Audit
Operator shall allow City to inspect its records with respect to services performed pur-suan' to this A 'Ar.g reasonable notice. Operator shall maintain Agreement, upon
91 any bcc'-,-S, records or other documents relating to &,e work- performed for a period of at least three (3) years from the completion of the services performed parsuant to this Apr ce-ner- for Prc ff-mional Opcrab ng -- esT*X &:N o
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Aereern-,nt.
XVT Default
In the c,. cnt that any of the provisions of this Agicemert are violated by Operator or by any approved subcontractor under any subcontract, City may, terminate this Agreement by serving written notice on Operator of its intention to tertminate ar.d, unless within five (55) days after the sewing of such notice such violation shall cease. this Aueement shall terminate. As to vioFatlons of the provisions of this Agrecrnent, which cannot be remedied or correzted within five (5) daNs, said A eemer a sliall at the option of City, cease and temiinane upon the gibing of said notice. In the event of any such termination for any of the aforementioned reasons, City may take over the work in progress and execute Inc Same to completion by contract or otherwise- on the account and at the exuense of Operator-, Operator shall be liable to City for any excess cost incurred M' the event of any such termination; and City may take possession of and utilize such materials and appliances as may be on the site of'work and necessa.-. in completing the work. This clause shall not be construed to present the termination, fbr other causes authorized by law, of other provisions of this Agreement- XVI I. Non -Discrimination
Operator shall not discriminate in its employment based on age, mental or physical disability, race, color, religion or creed, sex. gender, sexual orientation, gender identity or vender expression, medical conditio.i. genetic information, marital status, mil tar) or veteran status, or ancestry or nav I onal origin,
XV111. Dru- Free Workplace
Operator agrees to comply with the City's Drug Free Workplace Policy.
XIX- Attornev Fees
In the event of env action betwceln City and Operator arising from this Agreement, the r)re, ailing party in such action shall be awarded. in addition to damages, injunctive or othe-I relief. reasonable costs and expenses and reasonable attorney's fees, XX - Waiver
NNO wailer or failure to exercise anyright. option or privilege urdeT the terms of this Ageement on any occasion shall be con trued to be a waiver of any outer right, option or privilege on any other occasion,
XX1. Assignments
Neither this Agreement. nor any part thereof, nor any monies due or to becom.- due thereunder tray be assigned by Operator without the prior written consent and approval of City. City and Operator hl-reby agree to the fall performance of the co, enants and conditions contained heTeM.
)CM1. Successors
It is mutually understood and agreced that this Agree-irn, t shall be binding uporn, City Agrccmznt fc- Pnfrs-sional Optnting Scn-ces, The M&M Group Yucaips pteor=mg -Art$ Center mm
CitN, of Yucai
and its successors and upon Operator, its pa-tner-;z, successors. executors and administrators.
XXITL Notices
All not -ices shall be personally delivered or mailed to the below- listed addresses, or t,-,) such other addresses as may be designated by wnitien notice. These addresses shall be used for del iven i � of sere ice or process.
Address of City is as foUows:
City of Yucaipa
34272 Yucaipa Bl,,d-
Yucai.M CA 9-7399-9950
Jennifer Shankland.
Deputy City Manager
909-797-2489, Ext. 236
XXIV. Controlling Lawf%'enue
Address of Operator is as foflm-,s:
The Nf&M Group
16872 Belsa Chica Street, Suite 204
Hunti.mmn Beach, CA 92649
Michael Scafuto
President
7 It, 4-846-6600
California law shall govern the interpretation and enforcement of this Agree sent, and any action brou_dt relating to this Azreemerr shall be brought in San Bcmardino Counry.
XXV. Authority to Enter Agreement
Operator has all requisite power and anuthorim to conduct its business and to execute, deliver and perform the Agre—ement Each party warrants that the individuals who sign his Agreement have the legal ri power and authority to make this Agreement and to bind each respective party.
I'N'WHINESS WHEREOF. City and Operator have executed this Agreement the day and - year first above written.
City of Yucaipa
The M&NI Group
By its Authorized Representative:
Ll S`3 2
Greg Boah Date ichael S-cafuto Date
Mayor President
Attachrnen:(s); Exhibit "A"- Scope of Worik
Exhibit "B" - Operator's Proposj�
Agreemew for Pr3fassionxi taper -Ong Sind:m T-t! M&-kI Grcl.= p2ge 10
Y"aipa Pmfonnihg.Arts Ccmer
SCOPE OF SERV ICES
I. Scope of Services
Exhibit "A"
Operator will provide the rollovvi a services to ensure an effeeT;ve and efiicien- oorattng theater with significant community in,-.olvetment- I . Provide management, prod. amtnine and operation of the YPAC by providing MI. time, on -site sufiing (experienced professionals with knowledge of the arts and theater, With onsite management and show production experience) and part-time staffing (ticket takers. clerical workers. concessions stars. ushers. cleaners. security, etc.), This excludes pmg..mmin,g for the Uptown Paris. City, at its discretion, may contract with Operator to provide programming services for the L:pto,%T. Park, pursuant to Section X(E) of the ;agreement.
2. Provide quality production.&Ievrents including but not limited to: musicals, plays, concerts, comedies, cabarets, murder mysteries, community based theater. single act performancm dinner theater, dance nights. movie nights, youth theater. re shows, gala events. theatrical classes and workshops, and education�ennchment programming {art} dative, music, or other activities suitable for the facility) - I Plan and host, at the discretion of City, a minimum of 118 how.i'events during the first contract year acid 24 shows,"events during the second contract year. Operator Will have the resporWibility of planning and securing event entertain.-nent and programming for the YPAC, excluding the headline entertainment for the 2019 4, Prov-ide and implement the following:
• Monthly operational reports
• Sal es and sponsorships
• ?Monthly sales reports
• Qual-'erly financial reports (expenditures and revenues) • Quarkerly executive and monthly ottsite mapagement meetings with City staff. a. Maintain flexibility to modify events based on co mmunity response. demographics, affordable ticket pricing and susLunability during non -peak s.=.o is of entertainment trends
6- Provide excellent customer service and quality entertainanent for the local community and region.
Solicit and promote community invdlv�em nt and L-iterest in the venue and t' ;-; performing arts, including. bait not be limited to. Est lectures, presentations, Masses, etc,
8. Solicit and m-mage private rentals for .10prop:iate usage of a. banquet ,enue, A c_ z__ r Pr n. 0;xratin9 Seri : m T'lle ` &AI wear — Exhibit ". Page t Yucaipa Pek'_-7=ng Am Center
City of Y
theater venue and outdoor stage-
9. Create a master event calendar, in collaboration with City staff, and host a variety of theater praductions!events that meet the professional quality. economic development goals, Community Theater and artist interest, and the Performing Arts mission established by City,
H. Additional Senices
As directed by City staff, Operator shall, panicipate in City's speLial events which include, but may not be limited to, Wiriterfest, Auturnnfe-st. YNLALF (,excluding the headline entertainment for the 2019 YNLAF), Farmer's Markets, Summer Concert and kfoNie Series, and local theater productions,. and which may require collaboration %vith local community organizations.
Ill. Events
All scheduled events hosted by Operator will be mutually agreed upon by City and coordinated through an annual facility calendar that incorporates the needs of all collaborating partners.
W. Production Rating,
Facility events hosted, at the YPAC should be appropriate for audiences of all ages.
Events including "adult content" for those participants IS years and older must receive City approval prior to scheduling. Adult content inclu
des, but is not limited to,
obscenity. explicit language, nudity, violence, substance abuse, sexual depictions or references, or other adult themes. Operator and City shall comply with all applicable federal and state laws, including the First Amendment W the United States Constitution, in selecting and approving events hosted at the YPAC.
N1. Private Events and Rentals
Operator will be permitted to schedule private events and rentals a, the facility as long as the private event or rental does not conflict with another scheduled activity. City Will not ast-ierne any liability as it pertains to private events or rentals at the facility.
Parties contracting for private events and rentals shall be responsible for providing proper tride=ification of City, as determined by City's Risk Manager. This indern,rdfication shall include insurance coverage with additional insared endorsement. 5uklect to the provisions of Section X111 of the Agreement. It `xill be the responsibility of Operator to, ensure that the private event and'or rental has SlItTicient innJiurw.ce covenai,(;c consistent with Section X111 of tEe Agreement., and that all applicable laws = followed.
City Reservations
City reser.-es the right to reserve and schedule space to conduct events throughout the year; prior to the annual calendar scheduling,. Talent acquisitions may be open to ,outside agencies and shoal I rot be exclLsive to those available solely to Operator, .'kgretmenl for Profrssic--sal, 0-;e-,3Ur:_1 Gmup - FxNbit "A7, Page.2 Yucaipa Per",rming Ans Ccnicr
of Yucai
VII. Pricing
Operator will list pricing for all event tickets and rentals, depending upon factors that include, but are not limited to, attendance demand, economy, industry standard, talent cost, event duration, staffing levels required, m aAeting campaign costs, and props an&Or costume expenses, Establishing the ticket and rental pricing will be the responsibility of Operator, and are subject to approval by City. 11111. Authority of Operator
Subject to negotiations, Operator shall have the right ti-,) sub -contract with vendors, contractors and consultants to oversee all aspects of the day-to-day facihn manag gernent, which may include, but is not Limited to, food ser%,icefcaterers, ticketing agents, security, advertising and any other service deemed necessary by Operator. All such conti-acts entered into by Operator will be the sole responsibility of Operator and, as a result, no such service contracts, nor the personnel employed by a subcontracton will be considered to be employed or contracted by City.
Ix. Hours of Operation
Op m.tor shall staff all events, as appropriate, based upon the negotiated schedule and event type(s)- Additionally, Operator shall maintain consistent weekly bog office hours in order to accommodate all facility operations for prospective facility renters beyond that of the negotiated event schedule. The weekly box office hours will be mutually agreed upon by both parties, and will remain subject to City approval.
Utilities
City shall provide and pay, at its sole cost &-id expense, all utility costs for the -PAC, including water, electricity, gas, telephone, and internet services. All costs for utilities shall be included in City's Operating Budget. However. it is the sole responsibility of Operator to pay, at its sole cost and exp-erise, for cable and'or satellite television, should those scry ices be desired by Operator.
XI. Onsite Equipment and Materials
City owns equipment and materials at the YPAC that will be available for use at Operator I s discretion, subject to the approval by City. The proper use and maintenance of any items shall be the responsibility of Operator and is defined in Section X11, Maintenance and Alteration, The onsite equipment and materials may include. but are not limited to, kitchenware. sound equipment, video and projection cquiprnent, theatrical lighting, office and computer equipment, printers, copier, tools, and miscellaneous item-,. Additional equipment and materials can be utilized by Operator. and provided by Operator, if approved in writing by City. Any inventory items owned by City that are damaged or lost due to Operator fault, including negligence, shall be replaced and,'ur restocked at Operator's expense.
XIL INtainteriance and Alterations
Basic facility and equipment mainter—mce and materials �,Nill be the sole responsibility Of City. Operator will assist to ensure that all necessary maintenance and cleaning flr Proft�imal Opening S-ervicts, Tlht 1,1&-M C-r---,p - Edubit -A- Net 3
Yt---- spa PeTt-an Air--, Ct=--,
Civy of Yucaipa
procedures are being appropriate, completed by City, as apppriate, and that the physical condition of the facility is maintained in a professional, safe and high quality manner.
In addition to routine custodial care. City will provide Operator with an annual schedule outlining standard maintenance obligations of City. These obligations may include, but are not liniited to, cleaning of the interior and exterior portions of the facility, including %,6indows, carpet, tile, sinks, toilets, doors and stage and seating ar.--s as well as the necessary deferred maintenance and repairs to the facility and equipment.
Operator may not make any permanent facility alterations, improvements, additions or changes to the facility without the prior written consent of City. All approv ed facility alterations shall become the property of City. All approved alterations shall conform to all applicable laws and required building permits, as issued by City.
XM. Use of Facility -
Operator shall have access to the entire facility, excluding the:
I. Private offices located on the first floor,-northside; and
2. Secured storaee areas on the west side of the YPAC that are reserved for rental by outside user groupsl- and
One office or: the second flc,-,r for sole use by Cin'. as deemed necessary by City A97eenlear fDr RrDf-.4iii�nal OpmtLngc -C, I
GrOLr, - hit; �-, "A- pa.-c
ywaipa N-n-=m�-W -Vu cen."e'r
Exhibit `B"
Professional Operating
Services Proposal
Operator — The M&M Group
April 15, 2018
RFP Response to perform .Professio cl Operating Services for the Yucaipa Arts Center (YPAC).
Services Proposed by:
The !DIVA Group
16872 Bolsa Chica Street, Suite 204
Huntington Beach, CA 92649
(714) 846-6-1-00
YI'44s'J�f'7;21-�� O�G.o.r�
michael,arri 1-itrouc.or
The following proposal is submitted in response to the RPQ(RPP Professional Operating Services for the Yucaipa Performing Arts Center (YPAC). This letter certifies that Michael Scafuto, the undersigned, under penalty of perjury, is an agent authorized to submit proposals on beha!f of the proposed Operator, The FA&M Group_ ; r,e fol!ciwirg proposal is valid for 120 days. r y / `7
;gnature :' Date
Proposal Contact:
Michael Scafuto, President
The M,&M Group
16872 Eolsa Chica Street, Suite 2C4
(724) 846-5600
(909) 702-7437 cel,
www.mrn-Arouo.crz
rnichaelruimm-proue.org
EXPERIENCE
The M&M Group, founded over 30 years .ago during a very different era in entertainmert production, has continued to evolve with the times. Today, we are a young, modern organization Avith a staff that understands modem practices, but still emphasizes the focuses of our past - dependability, integrity and customer service. We work with all our client; to adjust our services to meet their specific needs, and vie are always willing to rreet to assess, and if necessar-f reassess their needs in an ever -changing world.
The company is led by its CEO Michael Scafuto who is a 25-year veteran and generation entertainment producer. The M.&M•, Group is fully qualified to provide professional operating services for the Yucaipa Performing Arts Center. We are a licensed, fully insured and bonded agency that has provided services in all aspects of the entertainment industry for over 30 years. We are legally, qualified to provide services throughout the United States and internationally. Our organization has a reputation for excellence and competency and we are committed to consistently providing the best quality services to all of our clients.
The M&M Group represents over 40 entertainment venues throughout the United States and produces 250-300 local, national and international concerts per year. Some of our clients include:
• The City of Burbank
• The City of Beaumont
• The City of Fontana
• The City of Ontario Conventions & Visitors Bureau
• Citizens Business Bank Arena
• Casino Morongo
• Pauma Casino
• Gallo Center for the ,arts
• Segerstrom Center for the Arts
Our submission will fully describe the services that The M&M Group can provide to ensure a smoothly operating theater with significant community =evolvement,
ARTISTS CONTRACTED
The following is a small sample of headliner artists contracted by the M&M Group in the past 5 years.
These costs include full productiarr expenses including artist fees, sound and 'lights, advertising, etc.
Act
Venue Size
Ron White
3,700 seats
Engelben Hurr-perdinck
ISM seats
An Evening of Dance (Ballet)
45.0 seats
Neil Sedaka
1.200 seats
The little Mermaid (Christja.-, School
450 seats
performance)
Pepe Agu Hiar
2,400 seats
Ramon Ayala
6,500 sears
Justin Beibef
20,000 seats
Flo Rida
',200 seat s
Fifth Harm"
1,800 seats
Rob Schneider
1,200 seats
Average White Band & Tower of Power
3,700 seats
1940s Battle of the Big Bands
450 seats
Straight No Chaser j
3,500 seats
Joan Sebastian
2,400 seats
Sara Evans
1,200 seats
Eddie Money, Rick Springfield and little
6,000 seats
River Band padmge
Chef Robert Irwine
1,200 seats
Ted Nugent & Hank Williams, it.
6,000 seats
Kris Kristofferson
I,OCQ seats
Million Dollar Quartet
Lzm seats
L Z
3 Doors Down
3,AW Seats
Act Venue Size
Paquita La De Barrio 2,4100 seats
Lauryn Hill 2,400 seats
Kansas & SWe OyVer Cult 3,500 seats
Gabriel Iglesias (two shows) 1,400 seats (per show)
NIT The Magic Dr4pn 1,200 seats
Gloria Trevi 1,900 seats
The Avett Brothers
4,000 seats
VENUE MANAGEMENT EXPERIENCE
The M&,A Group has years of experience operating and pre ramming entertainment venues, including San Manuel Indian Bingo & Casino, a large and highly -successful entertainment venue in the Inland Empire. For over seventeen years, we prcgrai med San Manuel's 3,000 seat venue and ran the entire entertainment program for their facility.
From dragon dancers who performed for Chinese New Year, to big -name national acts. The M&Aal Group was responsible for booking all entertainment, administering contracts, managing the entire theater and entertainment budget, overseeing security and coordinating catering and transportation.
For all events our staff was on site, .:corking with the ausf ence to ensure excellent customer service and positive patron interaction.
EXPERIENCE INTERACTING WITH LOCAL GROUPS
Community outreach has a.l.vays been an important component of the services that the M&M Group provides. Particularly for city -owned venues, the buy -in of the "oval community and community organizations is a necessity. The M&M Group can provide presentations to local schools and community groups, and host booths at !ocal events to spread the word to the community about the Yucaipa Performing Arts Center and to enccu,-age significant community involvement.
BUDGET EXPERIENCE
The h181%1 Group manages over $17 million in c€ient cudgets annually. This starts with working with each of cur venues to identify their entertainment goals. Based on those goals a budget is established taking into account all of the products and services that the client will require. 14$1e are committed to cutting costs and reducing overhead wherever possible to ensure the highest pr :fit for each venue that we work with. Our experience in the field provides us with cost-cutting tools that guarantee that our clients are receiving the best quality at the lowest possible expense. Budgets arm constantly tracked and rnoraitcred, and financial statements and invoices are issued to each client monthly.
BUSINESS PLAN
BUSINESS PLAN STRATEGY
Vision
Our vision is to make the Yucaipa Performing Arts Center the creative heartbeat of t~e Historic Uptown and the surrounding community. This will be accomplished through both lane and small artistic and entertainment events that meet the interest and needs of the community it serves. we believe that the key to bringing this vision to life is the involvement of those the YPAC serves. To that end, outreach programs to schools, as well as to social and business clubs_ and organizations %ill be an important ro'e for our ope-ations team.
Goals !k' Objectives
The First year goal will be to establish the theater in bot'i community development and industry development_ The importance of ccrnmunity development will be to engage and have the local community accept the theater's new role, providing entertainment and the arts locally and the becomirg the premier entertainment venue within the area. The purpose of industry development is to make the new state of the art theater available and accessible to touring artists, industry professionals, artists -agents/managers and local and national promoters. Utilizing our 35 year of experience and relationships, use can accomplish the difficult task of introducing the theater and announcing its availability] to the entertainment industry. This is a key component in establishingthe theater.
Operational Plan
Below are the services that The M&M Group will provide to ensure a s-icothly operating theater with sign ifi€cant community involvement.
• On -site Staffing — the business office and box office will be open 5 days a week and will maintain the same hours as City Hall. Additionally, the theater and offices will be open as needed to staff all events, activities and performances. Vie recommeind that the theater be dosed on Mondays and that only the offices be aspen for business and administrative purposes. • Submit Reports to the City including:
Monthly Operational Report
Sales and Sponsorships Report
Monthly Sales Report
Quarterly Financial Report
• Provide duality events throughout the year
• Develop a proprietary venue rider for the YPAC outlining atl rules and regulations, as i., ell as the responsibM ties of artists and venue.
• Mande Sales and Sponsorships
Create a propriety ticketing system specifically for the YPAC capable of tracking customers, analytics and other important customer information. This will be essential for creating a customer database: creating repeat customers and learning our audience demographics.
Attend quarterly executive and mcnthly on -site meetings Hire and Manage M&M Group theater staff (manager, clerical, ticket Takers, concessions, ushers, etc.). Staff will include.
A full-time on -site Theater Manager
Production Assistant I, Marketing / Community Liaison — full-time or part-time depending on City's budget.
Clerical Personnel — M&%1 Group staff will provide these services Lead Production Manager —full-time per City approval
Ticket Takers / Box Office / Concessions Staff / Ushers - The number of staff in these positions and their work schedules will be determined on a per; snow basis.
Participate in business & community networking (attend Ch3mber, business and community events'
• Coordinate and develop school performing arts program Vlan3ge Events
Contract Processing (reviewing, editing, revising, submitting, tracking, arranging payments) Manage the stage for all events
Attend annual performing art centers conferences
Select talent and develop entertainment seasons focusing on all potential revenue opportunities
Coordinate facility rental to promoters, touring artists: and per -forming art instructors Solicit and manage private rentals for usage of a banquet venue, theater venue and outdoor stage-
• We will create avenue deck that wilhave multi -levels of rental opportunities for private use,, which will be facilitated, managed and overseen by the Operator. This rental program guide will also be used as a toot by internal staff to solicit both current clients like AEG Presents, Live Nation, SMG, San Manuel Indian Bingo & Casino and N11crongo Casino. We will sell opportunities to each of these clients for small theater concern, banquets, private meetings, and large outdoor events, Additionally, we wi:l use this deck to encourage local community members and community businesses to utilize the facility for events such as weddings, meetings, celebrations of life, et--.
Advance shows
. Communicate with artist road and tour managers, venue staff and production staff . Coordinate and set a schedule for all shows
* Arrange artist rider reqjirernents
* And countless other items
* in collaboration with City Staff, create a rn aster event calendar,
VENUE OPERATIONS
Proposed Personnel (resumes of paten tial candidates attached) The key role will be led by a seasoned professional with over 15 years cf onsite Management and show producing experience in the entertai-,ment industry.
Operational oversight with bi-weekly audits will be provided by The M&M Group, headed by 11'.1kchael Scafuto, a Inventy-year entertainment industry executive, Administrative Staff Roles, responsibilities and number of staff assigned The r,,*I&M Group staff will create all financial reports,, generate invoices and provide administrative and event support to the theater Manager as needed.
TheM&M Croup will provide a marketing specialist to work on the design and implementation of all marketing plans, website design/update services and ad buvs- Estimated & Itemized Administrative EXPE11,52S
Please see our separate Financial Section for this information,, per the instructions in Section 5.4 of the RFP.
Anticipated StaH Schedule
The on -site manager position is full-time and will follow the City of Yucaipa's schedule (at minimum), Schedule wid be adjusted on event days to ensure coverage at all times- Ail oTher staff schedules will be based on show schedules and the needs of the f2cifity.
Facility Hours of Operations
The business office and cox office will be open 5 days a v.eek and will maintain the same hou—Z as Otli Hail. Additionally, the theater and offices will be open as needed lo staff all events, activities and performances. We rEcommend that the theater be closed on Mondays and that only the offices be open for business and administrative purposes.