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SR-106-005 (5) e _ ~ City of Santa Monica@ City Council Report City Council Meeting: August 8,2006 Agenda Item: ~ To: Mayor and City Council From: Martin Kennerly, Acting Director, Resource Management Department Subject: Approval of Bayside District Corporation's Work Plan and Budget for FY 2006-07 and Amended By-Laws Recommended Action This report recommends that the Santa Monica City Council: 1. Approve Bayside District Corporation's Budget and Work Plan for FY 2006-07, and; 2. Approve Bayside District Corporation's Amended By-Laws. Executive Summary Bayside District Corporation ("BDC") Board of Directors has approved a Work Program and Budget for FY 2006-07. The Work Plan sets forth a number of important on-going programs that address maintenance, marketing and venue management. A new initiative during FY 2006-07 will be to evaluate business and property owner support for a new assessment. Program activities are supported by a budget of $1 ,042,256. Of BDC's expected revenues in FY 2006-07, 84% comes from the City. The City collects two special assessments from businesses in the Downtown community. One assessment is from businesses within the Central Business District which totals $217,000 and is 1 directly passed through to the BDC. The second assessment is from businesses within the smaller Bayside District. The funds raised through this assessment support programs and services to the Bayside District including a contribution to BDC in the amount of $636,100. Council also is asked to approve BDC's amended by-laws. The amendments were minor and were made to bring the by-laws into conformance with State law. Discussion The Bayside Services Agreement dated December 3, 2004, calls for the BDC to submit for Council approval a Work Plan and Budget that describes BDC's planned activities and services, with a corresponding Budget for the up-coming fiscal year. The Services Agreement also calls for Council's approval of BDC's by-laws. Operations and Marketina Plan The Operations and Marketing Plan describes several on-going programs. These include serving as a liaison for coordinating special maintenance activities, and monitoring street performers, filming and special events. BDC is responsible for marketing the district and will be promoting and advertising the Bayside District through a number of different outlets. Local outlets include publication and distribution of the Bayside Beat and use of the local press, web-based media and cable television, including "spotlights" on local businesses. BDC updates the area's directories and publishes other visitor materials. Outreach to the region will be through advertisements at 2 the Hollywood Bowl and LA Magazine. BOG will continue to sponsor special events, including the Winterlit Holiday program that will be conducted in partnership with Santa Monica Place. In addition, Bayside advises the City on projects and programs that affect the Bayside District and facilitates discussions between the Gity and the business community. During FY 2006-07 the Operations and Marketing Plan highlights a special initiative that will involve outreach to the community to determine the level of support for an increased assessment to fund an expansion of programs and activities. With the assistance of Progressive Urban Management Associates, Bayside will engage the larger community in a discussion that will occur during fall 2006, with a possible recommendation coming to Council in spring 2007. BDC Budqet for FY 2006-07 Expenses for Fiscal Year 2006-07 are projected to increase by 8.35% from the previous year. Personnel costs will increase by $66,320 to provide support for the assessment effort and other BDC activities. Of the total budget for personnel, 80% is for program related staff support and 20% is for administrative staff support. The budget for Business Development is expected to increase by $28,000 over the previous year due to an increase in 'consultant services related to the new initiative. Marketing and Promotions will increase by $7,668, but these expenses are to be offset by a $17,000 cost savings in Operations and Maintenance and a $4,725 reduction in Administrative Expenses. BOG's revenue and expenditures for FY 2006-07 are as follows: 3 I Revenues FY 2005-06 FY 2006-07 % Variance % of Total City of Santa Monica $620,900 $633,318 2.00% 62.87% Central Business District $210,000 $217,000 3.33% 21.54% Dolphin Donations $5,000 $5,000 0.00% 0.50% Special Event $60,000 $65,000 8.33% 6.45% Filming $60,000 $65,000 8.33% 6.45% Interest $6,000 $22,000 266.67% 2.18% Revenue $961,000 $1,007,318 100.00% Carry forward from previous year $32,156 Total Revenue $1,042,256 Expenditures Personnel $401,900 $468,220 16.50% 44.92% Administration $167,890 $163,165 -2.81% 15.65% Business Development $46,250 $74,250 60.54% 7.12% Marketing & Promotion $302,500 $310,168 2.53% 29.76% Operations & Maintenance $38,000 $21,000 -44.74% 2.01% Dolphin Donation Program $5,360 $5,453 1.74% 0.52% Total Expenditure $961,900 $1,042,256 8.35% 100.00% Bvlaws At its meeting held April 27, 2006, the BDC Board of Directors approved revisions to its by-laws. For the most part, the by-law changes were minor and were made to bring the by-laws into conformance with State law. Among the changes that were made was a change to allow for notification of special meetings by email and to require six Directors 4 to approve appointment of the Executive Director. The revised by-laws eliminate Article 4, Section 4, Disclosure Statements and Conflict of Interest, because BDC, as a non- profit, is subject to State Law regarding Disclosure and Conflict of Interest, whether included or not. Since State law may change from time to time, the Board determined that this Section should be eliminated to avoid a potential for confusion. Commission Action BDC approved its bylaws at its meeting April 27, 2006, its Budget for FY 2006-07 at its meeting May 25, 2006, and its Operations and Marketing Plan at its meeting June 22, 2006. Budqet/Financiallmpact Approval of the Work Plan and Budget imposes no additional budget or financial impact on the City. City funding for the BDC in the amount of $636,100 is included in the City's FY 2006-07 Budget at account No. 30625.577070. Prepared by: Miriam Mack, Economic Development Manager Approved: h...SJ' ..~ Martin Kennerly, Acting Di ector, Resource Management 0 partment Attachments Bayside District Corporation Operations and Marketing Plan and Budget FY 2006-07 Amended and Restated Bylaws Bayside District Corporation 5 BAYSIDE DISTRICT CORPORATION Operations and Marketing Plan and Budget Fiscal Year 2006/2007 Table of Contents BDC Mission Statement Roles and Responsibilities Executive Summary Special Initiative Operations Marketing, Promotions and Public Relations Venue and Performance Management Staff Board of Directors Budget Page 2 3 4 5 8 13 16 18 18 19 Bayside District Corporation Mission Statement On behalf of the City of Santa Monica, to promote economic stability, growth and community life within the Bayside District through responsible planning, development, management, and coordination of programs, projects and services designed to benefit the community as a whole; which includes the District's businesses, property owners, visitors and residents. 2 Roles and Responsibilities The BDC is responsible for promoting the continued economic revitalization of the Downtown as well as programs, projects, and services that benefit Santa Monica residents, Downtown merchants, property owners, customers and visitors. · Organizing, advising, and/or conducting marketing and advertising campaigns for the benefit of the Downtown; · Organizing, advising, and/or conducting promotions and special events that attract and benefit local residents, customers, and visitors to the Downtown; Advising the City regarding long-term planning and zoning issues, retail mix, streetscape and capital improvement projects, public parking projects, signage, specific discretionary planning and zoning cases, and developmental strategies in order to enhance the economic vitality of the Downtown to benefit local residents and continue as a community resource; · Assisting in the identification, location and development of new businesses in the Downtown that will enhance its economic vitality; · Advising the City on operational issues involved in management of the Downtown, including but not limited to, leasing and management of City-owned property, maintenance and security concerns, parking operations, vending cart operations, outdoor dining, and the City's Farmers Market program; · Organizing and facilitating filming and special events in the Downtown; · Advising merchants, property owners, and others with business interests in the Downtown on private property issues including, but not limited to, retail mix, merchandising, maintenance, and security concerns; · Serving as an advocate on behalf of merchants, property owners, tenants leasing City-owned real estate, and the general public on issues affecting the continued vitality of the Downtown; · Serving as liaison with other local governments and professional organizations seeking information on the development or current operations of the Downtown; · Upon request of merchants, property owners, or residents with the Downtown, advocating various means of providing funding and implementation of additional measures of service in the Downtown that are not covered by the assessment districts and business improvement areas in place as of June 24, 1998; Administering or providing enhanced services and other activities for the Downtown as determined by the BDC staff and Board of Directors consistent with the Working Plan. 3 Executive Summary Overview Bayside District Corporation has been hard at work pursuing alternatives to enhance and maintain our Downtown. Along with our regular course of work, outlined in the following pages, we would like to emphasize the following new programs: · Exploration of new assessments that could fund much needed improvements and enhanced services in Downtown. · Establishment of a new Promenade lighting program. · New art banners by artist Lita Albuquerque. · A new, attended pilot restrooms program and participation in the City's seismic retrofit of Parking Structure #4. · A new Downtown guide established by our marketing committee will focus our visitor's attention on new and interesting activities in the Downtown. · New advertising formats shifting away from traditional print · An updated web site · More ethnic and cultural events. Efforts still underway include parking, traffic and circulation relief as well as theatre redevelopment in Downtown. Both programs are essential to the long-term vitality of the District. The Bayside District Board and staff look forward to an exciting year ahead! 4 Special Initiative Unveiled to the public in 1989, today its sustained success confirms that the Third Street Promenade and Downtown Santa Monica, with its wealth of boutiques, bookstores, theaters and cafes, is not simply an outdoor shopping mall, but a dynamic urban district unlike any other in the region. This year Bayside District Corporation will move forward on the evaluation and possible upgrades to the operational and capital needs in Downtown. With the aging infrastructure, and new competition in the marketplace, BDC is poised to assess the current operations and research current needs to keep the destination strong for years to come. Working in conjunction with a special consultant, BDC will establish goals and priorities with the community for Downtown. This will be done in a variety of ways, including outreach to the businesses and merchant community as well as residents and visitors who frequent Downtown. Once the community process is complete, and our goals established, we will work together to assess funding mechanisms to pay for our established goals. Existinl,! Assessments There are two property-based assessments and two business-based assessments within the downtown area. Property Based Assessments: I) The Bayside District Mall Assessment secures the bonded indebtedness that paid for the 1989 improvements that transformed what was formerly the Santa Monica Mall, into the Third Street Promenade and surrounding Bayside District. Assessments rates are broken down into zones of benefit. The bonds mature in 2016. In FY 2005-06, debt service was $1.2 million per year, based on the following: Zone 1: 1,143,361 sq. ft. @ $0.78/sf Zone 2: 711,458 sq. ft. @ $0.27/sf Zone 3: 706,136 sq. ft. @ $0.22/sf 2) The Parking Developer Fee, passed concurrently with the Mall Assessment, as an in-lieu parking fee on properties within the district that do not provide parking when new commercial square foot is added. The rate is $1.50/sf of commercial development that did not provide on-site parking. In FY 2005-06, the City assessed this fee on 41 properties that generated $559,000. 5 Boundaries for both assessments are Second Street, Fourth Street, and the Third Street Promenade between Wilshire Blvd. and Broadway Ave. The amounts are collected with the owner's property tax bill from the County Assessor's Office. Business-based assessments: 1) The "Assessment for Retail Businesses Only" formerly known as the Central Business District Retail Tax established in 1966 consists of all Retail businesses located between the centerline of Ocean Avenue to the centerline of 7th Street, and the centerline of the Santa Monica Freeway to 200 feet northwesterly of the centerline of Wilshire Boulevard. Retail businesses within this district are assessed and at a rate of 1/15th of 1 % of taxable sales per year up to a maximum of $1,000. During FY 04-05, 863 businesses paid this assessment and generated approximately $211,000. 2) The "Operations & Maintenance Assessment District" established in 1986 encompasses 2nd, 3rd and 4th street between Wilshire and Broadway. Businesses are assessed one times the business license tax up to a maximum of $21 K (or alternative sq. ft fee). During FY 04-05, 622 businesses paid this assessment and generated approximately $819,000. Business-based assessments are collected by the City and are transferred by grant of City Council to the Bayside District Corporation, a public benefit management company that works in partnership with the City to provide enhanced maintenance and marketing in the District and advise the City regarding long-term planning and economic issues facing the District. Analvsis In our evaluation, we will ask the following questions: 1. Does the commercial community need additional services that are not currently being provided by either the City or Bayside? If so, what are they and what is their cost? 2. Does a different level or type of service require an adjustment in the service area boundaries? If so, what are appropriate boundaries for a new/revised service area? 3. Should the City amend or replace the type of assessment district(s) now in place, and/or amend or replace the methodes) of assessment to meet new goals for the delivery of programs and services? 6 4. What are the most appropriate legal and financing mechanisms (business-based BID, property-based BID, other) for raising the amount of funds needed to achieve the desired goal and for managing the adopted programs and initiatives? Proiected Process Bayside District Corporation, in conjunction with the consultant, will: · Analyze and review background information as provided by the City. · Meet with stakeholder groups and individuals including City staff, Bayside District Corporation members, and possibly ad hoc committees to understand the issues, concerns, and goals. · Compile a parcel database of all parcels, businesses and properties within the affected area with an accompanying matrix of how assessments would be distributed among stakeholders. · Perform research and advise the City of available legal options regarding possibilities and feasible next steps, and advise the advisory group to help them come to a consensus on the preferred organizational model and service delivery , system. · Review recommendations and prepare and deliver a presentation of the findings in appropriate settings, including at a Bayside District Corporation Board meeting, ad hoc committee meetings and City Council study session or regular meeting. Conclusion Once this process is complete, Bayside District Corporation will be able to determine the final steps to either move forward on new assessments or re-structure current operations. 7 Operations Overview It is the priority of the Bayside District Corporation Operations and Maintenance Department to achieve high standards in the fields of maintenance, public safety, and customer service. This goal must be consistent in all public facilities within the Bayside and Downtown District. The Bayside District Corporation Operations Department works in conjunction with The City of Santa Monica Resource Management Division to meet our objectives and to ensure the completion of special maintenance and District improvement objectives. This coordination consists of all project phases, from conception to completion, including: job initiation, qualification, request for bids, and all other necessary steps. The BDC also works with the City in its management of vendors contracted to assist the City with maintenance needs. These vendors include: landscaping, vector control, and Promenade fountain maintenance. It is the mandate of the Operations Department to work directly with the necessary City of Santa Monica maintenance departments in order to meet its objectives. This work includes the initiation of Work Requests for general repair projects relating to electrical, landscaping, construction, graffiti removal, lighting, and pest control. The Bayside District Corporation also assists with the City on projects impacting the Downtown District. The BDC monitors and assists in the management of these projects. They include the lobby restoration in Parking Structure #5, the selection of a merchant for the 1400 Third Street Pavilion, and the management of the new Promenade vending cart program. The Operations Department is also responsible for maintaining its role as the chief liaison between tenants and all City-owned property. The Bayside District Corporation coordinates the repairs to these facilities, as well as provides guidance to these tenants in their relations with the City. The City and the BDC also work in conjunction in the processing and operation of the Outdoor Dining Agreements for the Third Street Promenade and the Transit Mall and the enforcement of sign compliance with the Downtown District. 8 Obiectives · Create a strong Downtown brand that is recognizable throughout the District · Make informed recommendations to the City and Bayside Board on major operations projects with the District. · Develop solid, dependable relationships with the City to ensure Bayside Operations Department effectiveness throughout the District in projects relating to maintenance, standards of cleanliness, and all other District projects and daily tasks. · Advocate for all merchants and residents within the Downtown District · Maintain a strict and timely schedule on all repeated projects to ensure the optimal effectiveness of the maintenance cycle. Strate2ies The Bayside District Corporation will maintain a healthy relationship with City staff and work in concert with the City to meet our objectives. We must meet the challenges of our environment and budget limitations and succeed in our goals of maintaining high standards of cleanliness, maintenance, and customer service. On-Goinf! Proiects The following projects are budgeted and managed through the Bayside District Corporation. · Tree Lights on Third Street Promenade Once per year the trees on the Promenade are trimmed, and new lights are installed or refurbished. · Back-lit Promenade Directories Twice each year the backlit directories and maps on the Promenade and in the Parking Structures are updated and replaced. In addition, replacements are installed for broken or damaged signs. We also perform routine maintenance on the lexan pieces that cover the directories. · Dolphin Change Program Oversee cash pick-up and counting, and the repairs to money collection boxes throughout the Downtown. · Holiday Decor and Lighting Program In 2005, the BDC enlisted Winterlit manufacturer Scenario Design, Inc., to transform the original Winterlit to a new design using the existing elements. Using tradition holiday themes, Scenario developed a new design, which proved successful and will be used again this season. 9 The following projects are budgeted through the City of Santa Monica Resource Management Department. Bayside District Corporation works in conjunction with this Department to coordinate maintenance projects in the District. The Maintenance and Operations Department typically oversee these efforts. Routine Maintenance Proiects Routine maintenance items are generally on-going projects that are required to keep the District's high standards intact. Projects in this category may include, but are not limited to the following: . Kiosk cleaning 2x/ year . Concrete/dinosaurs chemically washed (environmentally sound) 2x/year . Bayside sidewalk deep cleaning 4x/year . Paint lamp poles and Promenade directories 1 x/year . Kiosk door maintenance annually / as needed . Decorative tree lights 2nd/4th and Transit Mall lx/year . Kiosk window washing monthly . Awning cleaning Parking Structure #5 2x/year . Vector Management monthly / as needed . Deep cleaning of 2nd and 3rd Court alleys I x/year . Dinosaur Repair as needed . Parking Structure Sign Maintenance as needed . Deep cleaning of four crosswalks 4x/year . HV / AC maintenance for PS#5 Businesses 4x/year 10 Special Maintenance Projects Special maintenance items are those projects that are longer lasting once repairs or replacement is completed. Several items on this list require immediate attention given the age of the Promenade. · Assist the City of Santa Monica in the monitored pilot restroom project in Parking Structures #3 and #4 · Assist the City in establishment of a permanent, monitored restroom facility in Parking Structure #4 · Monitor and assist in all Downtown municipal construction projects including 2nd and 4th Street enhancements, California Incline, etc. · Manage the installation of Winter lit 2006 · Install LED tree lighting in Promenade jacarandas · Replacement of Promenade overhead art banners · Work with City of Santa Monica Solid Waste Department to replace private trash and recycling pick up with City service and improve the overall appearance of the 2nd and 3rd Ct. alleys · Add more metal Bayside branding discs to 2nd and 3rd Ct. alleys · Implement and manage Bayside District Ambassador Program. The Bayside District Corporation is currently researching ambassador programs throughout the country and is in the process of writing a Request for Proposals for a program unique to our downtown. · Fund and implement Capital Improvement Projects throughout the Downtown. The Bayside District Corporation, in conjunction with the Resource Management Department of the City of Santa Monica, has identified several maintenance projects that need immediate attention. These projects will restore vibrancy to the Downtown and keep us ahead of the maintenance curve. They include: · Parking structure fayade improvements · Exterior parking structure painting · Improved and expanded trash bin rooms · Monitored restroom project · Promenade tree replacement · Electrical upgrades on the Promenade · Concrete restoration study · Wayfinding signage study II Goals for Department . Succeed in addressing key capital improvement projects for the District. . Maintain a comprehensive capital improvement/replacement list that targets projects, identifies when they will be addressed, and forecasts their financial impact in future budgets . Improve the communicationltimelines for all projects and maintenance occurring within the Downtown . Maintain a system that outlines all Bayside generated work requests and follows and updates them from conception to completion . Create a database that outlines all non-Bays ide projects and follows and updates them from conception to completion . Improve the cleanliness of the Downtown parking structures by working with the City to institute a regular painting and maintenance program. . Continue to expand the Bayside District operational functions throughout the Downtown as budget allows. . Increase the Bayside District Corporation maintenance budget through City of Santa Monica Resource Management Division. . Maintain the maintenance and cleanliness of the District. 12 Marketing Overview BDC Marketing promotes Downtown Santa Monica including the world-famous Third Street Promenade. This 30-block area is unique to Los Angeles with its pedestrian- friendly layout and proximity to the beach and the Santa Monica Pier. BDC Marketing uses its creativity and resources to create, develop and execute an overall marketing plan. The plan involves advertising, events, customer service, community outreach and public relations to achieve its goals and objectives. Objectives · Encourage visitors to the area · Enhance the visitor experience · Develop communication and community relations · Provide customer service to local residents, merchants and visitors · Assist small business in promotions, advertising and marketing Strate2ies BDC Marketing helps drive traffic to the area by placing a regular and consistent advertising campaign that targets locals and visitors. BDC also works with area businesses and the Santa Monica CVB to develop programs that will drive customers into their stores or restaurants. Marketing works with community groups, merchants and marketing companies to plan and execute events that add fun and excitement to a visitors' day. The visual appeal of the Promenade will be updated with a new art banner installation this year. Marketing will continue to produce the Bayside Beat and provide hot sheets to the media updating them on business openings. And tools such as a new, quarterly visitors guide and the downtownsm.com web site will continue to be a valuable resource for our customers. Advertisin2 and Promotion Advertising and promotion is an important part of the marketing strategy. Advertising will be directed away from print advertising and more toward cable television including City TV. Local Market Surfsantamonica.com, The Mirror, Santa Monica Daily Press, City TV and Adelphia cable television Employee Discount Program The Employee Discount Program gets updated each month. This one-sheet is distributed through the Bayside Beat newsletter and posted to the web site. Regional Market Hollywood Bowl, Los Angeles Magazine 13 Tourist Market Santa Monica Official Visitors Guide, Santa Monica Official Map, participation in the Santa Monica VIP program (produced by the SMCVB) and Where Magazine Events The focus this year will be toward cultural and ethnic events and promotions on the Promenade; and moving away from Bayside sponsored events. Marketing serves the community by fielding hundreds of event inqumes. Various organizations including non-profits, community businesses and corporate companies request event information. Events require staff to screen calls, process applications, coordinate logistics and communicate with other City entities including Santa Monica Police and Fire Departments. Events generate revenue for Bayside District Corporation that in turn, gets re-invested into the overall marketing effort. The community has enjoyed annual events such as Earth Day and Jaycees Car Show. Barnes and Noble, Apple and Adidas are some of the merchants that have held events and many local student groups -SAMOHI, Cross Roads School - perform during the year. Corporate businesses such as Senseo, Jet Blue and the California Milk Council have also held promotions in the area. One of the most notable events this year was our partnership with KCRW and Story Corp, which we hope to pursue into the future with a permanent or semi-permanent location on the Promenade. Community Outreach/Public Relations It is important to maintain communications and public relations with customers, visitors, merchants and the media. Marketing achieves its communications duties by using various strategies. Bayside Beat This monthly newsletter has grown during the past 5 years and is a resourceful piece for merchants and the general community. Marketing will continue developing educational stories and streamlining the newsletter's production. Media Programs Marketing will continue to work with Santa Monica's City TV to develop "spotlights" on local businesses for the "Santa Monica Update" segment and pitch ideas for the "Get Out" lifestyle show. There are also plans to work with City TV to produce b-roll footage that will serve as a visual piece for broadcast media. Merchant Meetings Merchant meetings will continue to take an open discussion format. This has proven very effective in the past year and helps Bayside understand the issues and needs of local businesses. Marketing also will visit merchants one-on-one in order to communicate information and find out the current state of business. 14 Public Relations Quality press releases are generated and distributed to appropriate media. Topics such as new business announcements, special events and goodwill projects including the Dolphin Change program, help to generate positive coverage for Bayside District. Customer Service Tools Web Site Bayside District Corporation's official web site URL's are thirdstreetpromenade.com and downtownsm.com. Marketing will continue to invest in the web site in order to increase speed and efficiency. Staff updates event and meeting information as well as business listings. Visitor Serving Materials A new program introduced this year will be a quarterly publication with merchant listings, events and promotions. Produced in conjunction with an outside firm, this advertising driven piece will provide our merchants and visitors with more accurate information on a regular basis than our old format. Outdoor Directories There are 12 outdoor backlit directories located on the Promenade. These directories are updated annually. In addition, 8 directories are located in each parking garage and the parking office. The "Around the Corner" Campaign will be updated this fiscal year incorporating a new design and new business call outs. Special Proiects Construction Mitigation Marketing will provide updates to merchants and the community on the planned upgrades of 2nd & 4th Street as well as the redevelopment of Santa Monica Place. Art Banners Marketing has worked in conjunction with the Arts Commission to create new banners for Third Street Promenade created by Lita Alburquerque. These banners will be installed at the beginning of the fiscal year. Winterlit Holiday 2006 The holiday program will be coordinated once again with our partner, Santa Monica Place. Focusing on driving shoppers to the District, we will promote the Downtown events and promotions via advertising, local schools, etc. Santa Monica Holiday Campaign Formerly known as Shop Santa Monica, marketing will work with City officials and other community organizations to develop a new Santa Monica holiday campaign. Components of the campaign may include light pole banners, over the street banners, advertising and shopping bags. 15 Venue and Performance Management BDC's Venue and Performance Management is responsible for overseeing the Promenade, Transit Malls and Central Business District during high-impact times, traditionally Thursday through Sunday. The Venue and Performance Management functions range from managing street performers and free speech activists, to coordinating special events and promotions, as well as responding to operational issues that occur during the course of the weekends. In carrying out the various responsibilities, the Venue Manager works with street performers, religious groups, nonprofit entities, marketing and public relations firms, film companies, event managers, the Santa Monica Police Department (SMPD), the Santa Monica City Attorney's Office and the Promenade's maintenance crew. One of the goals of the Venue Manager is to develop a positive environment for all parties involved in the area - performers, merchants, event operators and visitors alike. In cooperation with the SMPD, the Venue Manager also assists in reporting and curtailing the unauthorized use of public space for filming, sales and promotions, graffiti and vandalism. Objectives The five key objectives for Venue and Performance Management are: · Maintain strong working relationships among BDC stake-holders, the City of Santa Monica, the Promenade's maintenance crew and the SMPD as they relate to the implementation and continued enforcement of the Performer's Ordinance and attention to the general aesthetics of the Promenade. · Contribute to the early phases of event planning in order to reduce misunderstandings, miscommunication and the misuse of the Promenade. · Continue to facilitate communications among performers, merchants and the SMPD in order to maintain functional and professional relationships with these core groups. · Foster, support and promote the development of the Promenade's talent base. · Work together with the SMPD, performers and stakeholders to make a positive impact on the noise violations on the Promenade. 16 Stratel!ies BDC shall, at the discretion of the City, host weekly orientation meetings for new performers and for performers who are renewing their permits. These meeting will provide performers with an opportunity to learn about the ordinance and give them the best opportunity to abide by the law. This requirement must be approved by City Council, and BDC, in conjunction with the performers will bring this to Council this year. One way to stay engaged with the performer community is to provide artists and entertainers with regular information updates as regards special events that may impact their performance space. Additionally, maintaining regular office hours and a high profile on the Promenade, making the Venue Manager available for conflict resolution and problem solving, serves to reassure the community that their needs are important and are being addressed. BDC will meet regularly with the SMPD regarding performer issues. As necessary, the Venue Manager will continue to host street performer meetings to discuss and air ideas from all sides of the street equation. In the past these meetings have been an effective way for performers to vent frustration in a less public location than the Promenade itself. As well, performer meetings have led to positive changes in how all sides perceive and ultimately work with each other. The Venue Manager will meet weekly with BDC Operations to cover any structural issues that arise during the course of a weekend, such as graffiti, vandalism or normal wear-and-tear. On a weekly basis also, the Venue Manager will meet with BDC' s Marketing Manager to review upcoming events and debrief on prior events. As well, the Venue Manager will work with the marketing department to add street performer names and contact information to downtownsm.com, and to ensure that the content is current. 17 Bayside District Corporation Staff 2006/2007 Executive Director Kathleen Rawson Operations Manager Andrew Thomas Marketing Manager Marivi Valcourt Venue Manager Stephen Bradford Administrative Assistant Linn Wile Receptionist Genea Demitroff Board of Directors 2005/2006 Barbara Bryan Michael Guerin Patricia Hoffman Jennifer Hranilovich David Martin Rob Rader Bill Tucker Joahnnes Van Tilburg Kelley Wallace John Warfel Marvin Zeidler 18 40100 Central Business District Assessrr $200,334 $210,000 $219,000 $217,000 3.3% 40300 Dolphin Donations $6,504 $5,000 $6,000 $5,000 0.0% 40400 Special Events $67,500 $60,000 $70,000 $65,000 8.3% 40500 Filming Revenue $76,525 $60,000 $60,000 $65,000 8.3% 41 000 Interest $10,322 $6,000 $20,000 $22,000 266.7% 42000 Other $0 TOTAL INCOME $97t,6()~ $961,9QQ $995,9QO $1.j007,~1.6 4.7% , PERSONNEL 60100 Salaries $290,299 $310,000 $305,000 $358,000 15.5% 60900 Payroll Taxes $23,555 $27,900 $27,450 $32,220 15.5% 60700 Insurance Benefits $49,231 $48,000 $64,000 $64,000 33.3% 60800 Pension $12,101 $16,000 $14,000 $14,000 -12.5% :rOTA. $375,186 $401,9()() $410,45() $468,2~O 16.5% ADMINISTRATION 60200 Bank Charges $200 $200 $200 $200 0.0% 60300 General Office Supplies $11,447 $12,500 $9,500 $11,500 -8.0% 60400 Occupancy $79,021 $82,490 $81,805 $84,390 2.3% 60500 Telephone /Internet $7,975 $9,500 $8,500 $9,500 0.0% 60600 Printing $709 $1,500 $350 $1,500 0.0% 61000 Professional Services $18,232 $20,450 $19,250 $20,750 1.5% 61100 Outside Services $200 $1,000 $0 $250 -75.0% 61200 Equipment Rental $3,309 $3,000 $3,400 $3,750 25.0% 61300 Taxes & Licenses $35 $50 $120 $125 150.0% 61400 Repairs & Maintenance $4,967 $2,000 $500 $1,500 -25.0% 61500 Membership & Subscriptions $1,737 $1,000 $1,000 $1,200 20.0% 61700 Postage $7,956 $9,000 $9,000 $9,000 0.0% 61800 Travel and Auto $24 $200 $200 $200 0.0% 61900 Education & Staff Develo pment $601 $1,000 $600 $1,000 0.0% 62400 Documentation $369 $500 $400 $400 -20.0% 62700 Insurance $12,724 $20,000 $12,600 $14,400 -28.0% 62800 Parking - not part of "Occupancy' $2,970 $3,000 $2,500 $3,000 0.0% 62900 Service Recognition $500 $250 $500 0.0% TOTAl $1$2;476 $167,890 $150,175 $163,165 -2.8% BUSINESS DEVELOPMENT 62000 Meetings $4,657 $6,750 $6,050 $8,250 22.2% 62100 Development $5,345 $4,500 $4,500 $6,000 33.3% 62200 Consultants $33,990 $35,000 $35,000 $60,000 71.4% 61600 Entertainment $0 $0 $0 0.0% TOT AI $43,992 $46,250 $45i$5() $74,.250 60.5% 6/5/06 $60,000 $69,000 $68,000 $62,000 -10.1% $4,727 $10,000 $8,200 $4,250 -57.5% $95,020 $99,000 $112,000 $71,500 -27.8% $41,213 $75,000 $65,000 $111,218 48.3% $2,450 $2,000 $2,500 $9,000 350.0% $30,746 $32,000 $32,000 $0 -100.0% $14,518 $9,000 $12,000 $21,000 133.3% $4,000 $0 $0 -100.0% $2,500 $1,000 $1,200 -52.0% $0 $0 $30,000 new $302,500 $~(JQ,7(Jp $310,168 2.5% OPERATIONS & MAINTENANCE 64000 Banners $0 $0 $30,000 $1,000 new 64100 Li htin $20,000 $38,000 $18,600 $20,000 -47.4% $20,POO $3$,000 $48;6(J0 $21,000 -44.7% $112 $360 $337 $303 -15.8% $5,150 $5,000 $5,150 $5,150 3.0% $5,262 $5,360 $$;4$7 $5,453 1.7% TOTAL EXPENDITURES TOTAL INCOME BALANCE Carried over from last year I BALANCE I $34,938 6/5/06 AMENDED AND RESTATED BYLAWS BAYSIDE DISTRICT CORPORATION a California non-profit public benefit Corporation ARTICLE 1. OFFICES Section 1. Principal Office. The principal office of the Bayside District Corporation (the "Corporation") shall be fixed and located at such place in the City of Santa Monica, California as the Board of Directors (the "Board") shall determine. The Board is granted full power and authority to change the principal office from one location to another. Section 2. Other Offices. Branch or subordinate offices may be established at any time by the Board at any place or places. ARTICLE 2. MEMBERS Section 1. Member. The City of Santa Monica (the "City") shall be the sole Member (the "Member") of the Corporation and shall act through its City Council (the "City Council") in accordance with the City Charter, the City's Municipal Code and applicable state laws. The function of the Member shall be to elect the Board of Directors, to initiate and approve any amendment to these Bylaws, to approve the Corporation's budget and to perform other duties as the Board of Directors may from time to time assign or establish with the prior approval ofthe Member. Section 2. Meetings of Member. An annual meeting of the Member of the Corporation shall be held each year at such time and place as may be determined by the Member. A special meeting ofthe Member may be held upon call by the Member. All meetings of the Member shall be conducted at meetings of the City Council, and shall be placed on the agenda of the City Council, in accordance with the City Council's regular procedures. Section 3. Notice of Meetings. Written notice of each annual or special meeting shall be given to the Member either personally or by mail or other means of written communication, charges prepaid, addressed to such Member as follows: City of Santa Monica, 1685 Main Street, Santa Monica, California 90401, Attention: Office of the City Clerk or to such other address or addresses as shall be given by it to the Corporation for the purpose of notice. All such notices shall be sent to the Member not fewer than ten (10) nor more than ninety (90) days before each meeting; shall specify the place, day and hour of such meeting; shall state the general matter of the business or proposal to be considered or acted upon at such meeting; and shall contain a request that the City Clerk ("City Clerk") of the City of Santa Monica give such public notice of the meeting as may be required by the Ralph M. Brown Act (California Government Code sections 54950 et seq.). Such notice shall also be given to the City Manager (the "City Manager") of the City of Santa Monica. Such notice shall comply with section 5511 ofthe California Nonprofit Public Benefit Corporation Law. [:/124181_ 4.DOC/041806/3616.002:April 18, 2oo6J Section 4. Quorum. The presence in person of a majority of the City Council shall constitute a quorum for the transaction of business at all meetings. Section 5. Action. Membership action shall be effective upon written notification to the Corporation by the City Clerk. ARTICLE3. DIRECTORS Section 1. Powers. Subject to limitations of the Articles and these Bylaws, the activities and affairs of the Corporation shall be conducted, managed and controlled, and all corporate powers shall be exercised by or under the direction ofthe Board. The Board may delegate the management of the activities of the Corporation to an Executive Director and Staff, to any other person or persons, or to committees however composed, provided that the activities and affairs ofthe Corporation shall be managed and all corporate powers shall be exercised under the ultimate direction of the Board. Without prejudice to such general powers, but subject to the same limitations, it is hereby expressly declared that the Board shall have the following powers in addition to the other powers enumerated in these Bylaws: (a) To select and remove an Executive Director, officers, agents, and employees of the Corporation, prescribe powers and duties for them as may not be inconsistent with law, the Articles, or these Bylaws, fix their compensation, and require from them security for faithful service; provided, however, that the selection of the Executive Director of the Corporation shall be subject to the express written consent of the City Manager. (b) To adopt, make and use a corporate seal and to alter the form of such seal from time to time as they may deem best. (c) To borrow money and incur indebtedness for the purposes of the Corporation, and to cause to be executed and delivered therefor, in the corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations, or other evidences of debt and securities therefor, subject, however, to the approval of the Member. Such approval may be general and need not be specific in nature. (d) To carry on a business at a profit and apply any profit that results from the business activity to any activity in which it may lawfully engage, subject, however, to the restrictions contained in the Articles. Section 2. Number of Directors. The authorized number of Directors shall be eleven (11) until changed by amendment ofthe Articles or by a Bylaw. Section 3. Election and Term of Office. Directors shall be elected by the Member. Directors shall serve for terms offour (4) years as determined by the Member. Unless othetwise authorized in accordance with the policies and procedures of the Member, Directors shall serve no more than two (2) consecutive terms. The Member shall adopt a nomination and election procedure that complies with Section 5520 of the California Nonprofit Public Benefit Corporation Law. [:/124181_ 4.DOCJ041806/3616.002:ApriI18, 2006] 2 Section 4. Vacancies. Subject to the provisions of Section 5226 ofthe California Nonprofit Public Benefit Corporation Law, any Director may resign effective upon giving written notice to the Chair of the Board, the Secretary, or the Board, unless the notice specifies a later time for the effectiveness of such resignation. If the resignation is effective at a future time, a successor may be elected before such time, to take office when the resignation becomes effective. (a) Vacancies in the Board shall be filled by the Member. Each Director so selected shall hold office until the expiration of the term of the replaced Director and until a successor has been elected and qualified. (b) A vacancy or vacancies in the Board shall be deemed to exist in case of the death, resignation, or removal of any Director, or if the authorized number of Directors is increased. (c) The City Council may declare vacant the office of a Director who has been declared of unsound mind by a final order of court, or convicted of a felony, or found by a final order or judgment of any court to have breached any duty arising under Article 3 of the California Nonprofit Public Benefit Corporation Law or who has failed to attend six (6) regular meetings of the Board within a twelve (12) month period. A Director may be removed without cause by the vote of five (5) City Council members. A removed Director's successor may be elected immediately. (d) No reduction ofthe authorized number of Directors shall have the effect of removing any Director prior to the expiration of the Director's term of office. Section 5. Place of Meeting. Meetings of the Board shall be held at any place within the City of Santa Monica, State of California which is open to the public and which has been designated from time to time by the B'oard. In the absence of such designation, regular meetings shall be held at the principal office of the Corporation, in which case the principal office of the corporation shall be open to the public for the meeting of the Board. Section 6. Annual Meetings. The Board shall hold an annual meeting for the purpose of organization, election of officers, and the transaction of other business. Section 7. Regular Meetings. Regular meetings of the Board shall be held on such dates and at such times as may be fixed by the Board. At least ten (10) monthly meetings shall be held during each full fiscal year. Notice of regular meetings shall be sent to the City Clerk, the Santa Monica Police Department and the Santa Monica Public Library not fewer than three (3) nor more than ten (10) days before such meeting. In addition such notice shall, to the extent possible, be posted on the website of the Corporation. The notice shall specify the business intended to be conducted at the meeting, but any business transacted at such meeting shall be validly conducted, so long as not otherwise inconsistent with law, the Articles or these Bylaws. Section 8. Special Meetings. Special meetings ofthe Board for any purpose or purposes may be called at any time by the Chair of the Board, the Executive Director, any Vice Chair, the Secretary, or any six (6) Directors. [:fI24181_4.DOCf041806/3616.002:ApriI18.2006] 3 Special meetings ofthe Board shall be held upon four (4) days notice by first-class mail or 48 hours notice given personally or by telephone, telegraph, telex, email, or other similar means of communication. Any such notice shall be addressed or delivered to each Director at such Director's address as it is shown upon the records ofthe Corporation or as may have been given to the Corporation by the Director for purposes of notice or, if such address is not shown on such records or is not readily ascertainable, at the place in which the meetings of the Directors are regularly held. Such notice shall also (a) be given to the City Clerk, the Santa Monica Police Department and the Santa Monica Public Library; and (b) shall, to the extent possible, be posted on the web site of the Corporation. The notice shall specify the purpose of the meeting, but any business transacted at such meeting shall be validly conducted, so long as not otherwise inconsistent with law, the Articles or these Bylaws. Notice by mail shall be deemed to have been given at the time a written notice is deposited in the United States mails, postage prepaid. Any other written notice shall be deemed to have been given at the time it is personally delivered to the recipient or is delivered to a common carrier for transmission, or actually transmitted by the person giving the notice by electronic means, to the recipient. Oral notice shall be deemed to have been given at the time it is communicated, in person or by telephone or wireless, to the recipient or to a person at the office of the recipient who the person giving the notice has reason to believe will promptly communicate it to the receiver. Section 9. Quorum. Six (6) Directors constitute a quorum ofthe Board for the transaction of business, except to adjourn as provided in Section 12 ofthis Article 3. Every act or decision done or made by a majority of the number of (but no fewer than five) Directors present at a meeting duly held at which a quorum is present shall be regarded as the act of the Board, unless a greater number is required by law, by the Articles or by these Bylaws. Section 10. Participation in Meetings by Conference Telephone. Members ofthe Board may participate in a meeting through use of conference telephone or similar communications equipment, so long as all persons participating in or present at such meeting can hear one another, and so long as not less than a quorum of the Board is present in person at the meeting. In order to vote at such a meeting, any Director participating through the use of conference telephone or similar communications equipment must have so participat~d for the entire portion of such meeting preceding such vote. Section 11. Waiver of Notice. Notice of a meeting need not be given to any Director who signs a waiver of notice or a written consent to holding the meeting or an approval of the minutes thereof, whether before or after the meeting, or who attends the meeting without protesting, prior thereto or at its commencement, the lack of notice to such Director. All such waivers, consents, and approvals shall be filed with the corporate records or made a part of the minutes of the meetings. Section 12. Adjournment. A majority of the Directors present, whether or not a quorum is present, may adjourn any Directors' meeting to another time and place. Notice of the time and place of holding an adjourned meeting need not be given to absent Directors, nor to the news media, the City Clerk or the City Manager if the time and place is fixed at the meeting adjourned, except as provided in the next two sentences. If the meeting is adjourned for more [:/1 24181_4.DOC/041806/361 6.002:April 18, 2006] 4 than seventy-two (72) hours, notice of any adjournment to another time or place shall be given prior to the time ofthe adjourned meeting to the Directors who were not present at the time of the adjournment. A written notice of adjournment setting forth the time and place ofthe adj ourned meetipg shall be conspicuously posted on or near the door of the place where the regular, adjourned regular, special or adjourned special meeting was held within 24 hours after the time of adjournment, and shall remain posted until at least the time specified therein for the commencement of the adjourned meeting. Section 13. Public Meetings. All meetings of the Board shall be open and public, and any person shall be permitted to attend any meeting of the Board, except as otherwise provided in this Section. Members of the public shall be entitled to participate in accordance with such rules as may be adopted by the Board from time to time. Nothing contained in this Section or these Bylaws shall be construed to prevent the Board from holding closed sessions to the extent permitted by applicable law (a) for the purpose of discussing matters related to litigation, including pending, threatened or anticipated litigation; (b) to consider the appointment, employment, evaluation of performance, or dismissal of an employee or to hear complaints or charges brought against an employee by another person or employee unless such employee requests a public hearing or (c) for such other purposes as may be permitted by the Ralph M. Brown Act (California Govenunent Code Sections 54950 et seq.); provided, however, that the final vote of the Board on any action to be taken by the Corporation with respect to the appointment, employment or dismissal of an employee shall be taken at a meeting of the Board while such meeting is open to the public. Section 14. Rights of Inspection. Every Director shall have the absolute right at any reasonable time to inspect and copy all books, records, and documents of every kind and to inspect the physical properties of the Corporation. Section 15. Committees. The Board may appoint one or more committees, each consisting of two or more Directors, and delegate to such committees any of the authority of the Board except with respect to: (a) The approval of any action for which the California Non-Profit Public Benefit Corporation Law also requires approval of the members or approval of a majority of all members, (b) The filling of vacancies on the Board or in any committee which has the authority of the Board; ( c) The amendment or repeal of any resolution of the Board which by its express terms is not so amendable or repealable; (d) The approval of any self-dealing transaction, as such transactions are defined in Section 5233(a) of the California Non-Profit Public Benefit Corporation Law. Any such committee must be created, and the members thereof appointed, by resolution adopted by a majority of the authorized number of Directors then in office, provided a quorum is present, and any such committee may be designated an Executive Committee or by such other name as the Board shall specify. The Board may appoint, in the same manner, alternate members [:/1 2418C4.DOCl04 1806/361 6.002:April 18, 2006] 5 of any committee who may replace any absent member at any meeting of the committee. The Board shall have the power to prescribe the manner in which proceedings of any such committee shall be conducted. In the absence of any such prescription, such committee shall have the power to prescribe the manner in which its proceedings shall be conducted. Unless the Board or such committee shall otherwise provide, the regular and special meetings and other actions of any such committee shall be governed by the provisions of this Article 3 applicable to meetings and actions of the Board. Minutes shall be kept of each meeting of each committee: Section 16. Fees and Compensation. Directors and members of committees shall receive no compensation for their services as such Directors or members, but may receive such reimbursement for business related expenses, as may be fixed and authorized by the Board, consistent with the guidelines and reimbursement policies of the City. Section 17. Participation In Political Activities. Directors and members of Committees are prohibited from knowingly participating in supporting nominees for Board membership and political activities/organizations by making a representation as a Board and/or Committee Member. The Board shall not authorize nor reimburse any Director or staff for expenses incurred in the support of nominees to the Board nor involvement in political activity. (a) The Corporation is prohibited from spending money or making public statements in support of candidates for public office or nominees for Director. (b) The Directors, as Directors of the Corporation, are prohibited from intentionally spending money or making public statements in support of candidates for public office or nominees for Director. This provision does not limit the activities or statements of Directors as private citizens. ARTICLE 4. TRANSACTIONS IN WHICH DIRECTORS HAVE MATERIAL FINANCL\LINTEREST Section 1. Prohibition Against Self-Dealing Transactions. The Corporation shall not enter into any transaction in which one or more of its Directors has a material financial interest, unless the transaction meets the requirements of paragraph (a), (b) or (c) of Section 2 of this Article 4. For purposes of this Article 4, a "self dealing transaction" means a transaction to which the Corporation is a party and in which one or more of its Directors has a material fmancial interest. For purposes of this Article 4, such a Director is referred to as an "interested Director." This section shall not be construed to prohibit (a) a transaction which is part of a public or charitable program of the Corporation if it (i) is approved or authorized by the Corporation in good faith and without unjustified favoritism; and (ii) results in a benefit to one or more Directors or their families because they are in the class of persons intended to be benefited by the public or charitable program; or (b) a transaction, of which the interested Director or Directors have no actual knowledge, and which does not exceed the lesser of 1 percent of the gross receipts of the Corporation for the preceding fiscal year or one hundred thousand dollars ($100,000). Section 2. Permitted Self-Dealing Transactions. The Corporation shall be authorized to engage in a self-dealing transaction if: (:/124181_4.DOC/041806/3616.002:AprilI8.2006] 6 (a) The California Attorney General or the court in an action in which the California Attorney General is an indispensable party, has approved the transaction before or after it was consummated; or (b) The following facts are established: (1) The Corporation entered into the transaction for its own benefit; (2) The transaction was fair and reasonable as to the Corporation at the time the corporation entered into the transaction; (3) Prior to consummating the transaction or any part thereof, the Board authorized or approved the transaction in good faith by a vote of a majority of the Directors then in office without counting the vote of the interested Director or Directors, and with knowledge of the material facts concerning the transaction and the Director's interest in the transaction. Except as provided in paragraph (c) of this Section 2, action by a committee of the Board shall not satisfy this paragraph; and (4) (A) Prior to authorizing or approving the transaction, the Board considered and in good faith determined after reasonable investigation under the circumstances that the Corporation could not have obtained a more advantageous arrangement with reasonable effort under the circumstances; or (B) The Corporation in fact could not have obtained a more advantageous arrangement with reasonable effort under the circumstances; or (c) The following facts are established: (1) A committee or person authorized by the Board approved the transaction in a manner consistent with the standards set forth in paragraph (b) of this Section 2; (2) It was not reasonably practicable to obtain approval of the Board prior to entering into the transaction; and (3) The Board, after determining in good faith that the conditions of subparagraphs (1) and (2) of this paragraph were satisfied, ratified the transaction at its next meeting by a vote of the majority ofthe Directors then in office without counting the vote of the interested Director or Directors. Section 3. Prohibited Loans and Guarantees. The Corporation shall not make any loan of money or property to or guarantee the obligation of any Director or Officer, unless approved by the California Attorney General, except that the Corporation may advance money to a Director or Officer of the Corporation for expenses reasonably anticipated to be incurred in the performance of the duties of such Officer or Director, provided that in the absence of such advance, such Director or Officer would be entitled to be reimbursed for such expenses by the Corporation. [:/124181_ 4.DOCl041806/3616.002:April 18, 2006J 7 ARTICLE 5. OFFICERS Section 1. Officers. The officers of the Corporation shall be a Chair of the Board, a Secretary, and a Treasurer, who shall also serve as the Chief Financial Officer. The Corporation may also have, at the discretion of the Board, one or more Vice-Chairs, one or more Assistant Secretaries, one or more Assistant Treasurers, an Executive Director and such other officers as may be elected or appointed in accordance with the provisions of Section 3 ofthis Article 5. Any number of offices may be held by the same person except as provided in the Articles or in these Bylaws and except that neither the Secretary, any Assistant Secretary, the Treasurer, nor any Assistant Treasurer may serve concurrently as the Executive Director or the Chair of the Board. Section 2. Election. The Officers ofthe Corporation, except the Executive Director and such other officers as may be elected or appointed in accordance with the provisions of Section 3 or Section 5 of this Article 5, shall be chosen annually by, and shall serve at the pleasure of, the Board, and shall hold their respective offices until their resignation, removal, or other disqualification from service, or until their respective successors shall be elected. Section 3. Subordinate Officers. The Board may elect the Executive Director and such other Officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority, and perform such duties as are provided in these Bylaws or as the Board may from time to time determine. The Board may empower the Chair of the Board to appoint such Officers, other than the Executive Director. Section 4. Removal and Resignation. Any Officer may be removed, either with or without cause, by the Board at any time or, except in the case of an Officer chosen by the Board, by any Officer upon whom such power of removal may be conferred by the Board. Any such removal shall be without prejudice to the rights, if any, of the Officer under any contract of employment of the Officer. Any Officer may resign at any time by giving written notice to the Corporation, but without prejudice to the rights, if any, ofthe Corporation under any contract to which the Officer is a party. Any such resignation shall take effect at the date ofthe receipt of such notice or at any later time specified therein and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Section 5. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification, or any other cause shall be filled in the manner prescribed in these Bylaws for regular election or appointment to such office, provided that such vacancies shall be filled as they occur, and not on an annual basis, Section 6. Chair of the Board. The Chair of the Board shall, if present, preside at all meetings of the Board and exercise and perform such other powers and duties as may be assigned from time to time by the Board. The Chair of the Board must be a Director of the Corporation. The Chair shall be chosen annually by the Board at the first meeting of the fiscal year. No one Board member may serve more than two (2) consecutive years as Chair. Section 7. Executive Director. The Executive Director shall be elected or appointed, and may be removed, only with the approval of at least six (6) Directors. Except for [:/12418J_4.DOCJ041806/3616.002:ApriI18,2006} 8 and subject to such powers, if any, as may be given by the Board to the Chair of the Board, and subject to the Board's determination as to whether the Executive Director shall be an Officer of the Corporation, the Executive Director shall be the Chief Executive Officer and Chief Operating Officer of the Corporation and shall have, subject to the control of the Board, general supervision, direction and control of the day to day business affairs of the Corporation. At.the Board~s discretion, the Executive Director shall have the general powers and duties of management usually vested in the General Manager of an enterprise and such other powers and duties as may be prescribed by the Board. The Executive Director shall not be a Director of the Corporation and need not be an Officer of the Corporation. Section 8. Vice Chairs. Vice Chairs shall be chosen annually by the Board at the first meeting ofthe fiscal year. In the absence or disability of the Chair of the Board, the Vice- Chairs, if any are appointed, in order of their rank as fixed by the Board or, if not ranked, the Vice-Chair designated by the Board shall preside at meetings of the Board and shall perform all the duties of, and be subject to all the restrictions upon, the Chair of the Board. The Vice-Chairs shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board. All Vice-Chairs must be Directors of the Corporation. Section 9. Secretary. The Secretary shall be chosen annually by the Board at the first meeting of the fiscal year. The Secretary shall keep or cause to be kept, at the principal office or such other place as the Board may order, a book of minutes of all meetings of the Board and its committees, with the time and place of holding, whether regular or special, and if special, how authorized, the notice thereof given, the names of those present at Board and committee meetings, and the proceedings thereof. The Secretary shall keep, or cause to be kept, at the principal office in the State of California the original or a copy of the Corporation's Articles and Bylaws, as amended to date. The Secretary shall give, or cause to be given, notice of all meetings of the Board and any committees thereof required by these Bylaws or by law to be'given, shall keep the seal ofthe corporation in safe custody, and shall have such other powers and perform such other duties as may be prescribed by the Board. In the absence or disability of the Chair of the Board and aU Vice-Chairs, the Secretary shall preside at meetings of the Board if the Secretary is a Director of the Corporation. The Secretary may but need not be a Director of the Corporation. Section 10. Chief Financial Officer. The Chief Financial Officer shall be chosen annually by the Board at the first meeting of the fiscal year. The Chief Financial Officer shall keep and maintain, or cause to be kept and maintained, adequate and correct accounts of the properties and business transactions of the Corporation. The books of account shall at all times be open to inspection by any Director. The Chief Financial Officer shall deposit or cause to be deposited, all moneys and other valuables in the name and to the credit of the Corporation with such depositories as may be designated by the Board. The Chief Financial Officer shall disburse the funds of the Corporation as may be ordered by the Board, shall render to the Executive Director and Directors, whenever they request it, an account of all transactions as Chief Financial Officer and of the financial condition of the Corporation, and shall have such other powers and perform such other duties as [:/124181_ 4.DOC/041806/3616.002:ApriI18, 2006] 9 may be prescribed by the Board. In the absence or disability of the Chair ofthe Board, all Vice- Chairs and the Secretary, the Chief Financial Officer shall preside at meetings of the Board, if the Chief Financial Officer is a Director of the Corporation. The Chief Financial Officer may but need not be a Director of the Corporation. ARTICLE 6. REPORTS, RECORDS AND RIGHTS OF INSPECTION Section 1. Annual Report to Member. Within ninety (90) days after the close of the Corporation's fiscal year, the Board shall cause an annual report of its operations to be provided to the City Council. Such report shall contain, in appropriate detail, the following: (a) The assets and liabilities, including the trust funds, of the Corporation as of the end of the fiscal year. (b) The principal changes in assets and liabilities of the Corporation, including trust funds, during the fiscal year. (c) The revenue or receipts of the Corporation, both unrestricted and restricted to particular purposes, for the fiscal year. (d) The expenses or disbursements of the Corporation, for both general and restricted purposes, during the fiscal year. (e) Any information required by Section 6322 of the California Non.Profit Public Benefit Corporation Law (pertaining to certain transactions and indemnifications involving interested persons). (f) A narrative description of the Corporation's principal activities during the fiscal year. (g) Such other information concerning the Corporation as may be requested by the City Council in writing not less than ninety (90) days preceding the end of such fiscal year. Section 2. Records and Rights oflnspection. The Corporation shall keep adequate and correct books and records of account and minutes ofthe proceedings of its Member, the Board and committees of the Board. Minutes shall be kept in written form. Other books and records shall be kept either in written form or in any form capable of being converted into written form. The books and records of the Corporation shall be open to inspection and copying by members of the public to the same extent as the public records of the City of Santa Monica. ARTICLE 7. INDEMNIFICATION Section 1. Statutory Indemnity. This Corporation shall indemnify its Directors, Officers and employees to the fullest extent permitted by the California Non-Profit Public Benefit Corporation Law. [:/124181_4.DOC/041806!3616.002:ApriI18,2006) 10 Section 2. Non applicability to Fiduciaries of Employee Benefit Plans. This Article does not apply to any proceeding against any trustee, investment manager, or other fiduciary of an employee benefit plan in such person's capacity as such, even though such person may also be an agent of the Corporation as defined in Section 1 ofthis Article 7. The Corporation shall have power to indemnify such trustee, investment manager, or other fiduciary to the extent pennitted by subdivision (f) of Section 207 of the California General Corporation Law. ARTICLE 8. OTHER PROVISIONS Section 1. Endorsement of Documents; Contracts. Subject to the provisions of applicable law and these Bylaws, any note, mortgage, evidence of indebtedness, contract, conveyance, or other instrument in writing and any assigrunent or endorsement thereof executed or entered into between the Corporation and any other person, when signed by (a) the Executive Director, or (b)(i) the Chair of the Board or any Vice Chair and (b)(ii) the Secretary, any Assistant Secretary, the Chief Financial Officer, or any Assistant Treasurer of the Corporation shall be valid and binding on the Corporation in the absence of actuallmowledge on the part of the other person that the signing officers had no authority to execute the same. Any such instruments may be signed by any other person or persons in such manner as from time to time shall be determined by the Board, and, unless so authorized by the Board, no officer, agent, or employee shall have any power or authority to bind the Corporation by any contract or engagement or to pledge its credit or to render it liable for any purpose or amount. Section 2. Representation of Shares of Other Corporations. The Chair of the Board or any other Officer or Officers authorized by the Board or the Chair of the Board are each authorized to vote, represent, and exercise on behalf ofthe Corporation all rights incident to any and all shares of any other corporation or corporations standing in the name of the Corporation. The authority herein granted may be exercised either by any such officer in person or by any other persons authorized so to do by proxy or power of attorney duly executed by said Officer. Section 3. Construction and Definitions. Unless the context otheIWise requires, the general provisions, rules of construction, and definitions contained in the General Provisions of the California Nonprofit Corporation Law and in the California Nonprofit Public Benefit Corporation Law shall govern the construction of these Bylaws. Section 4. Establishment of Fiscal Year. The fiscal year of this Corporation shall end on June 30 of each year. Section S. Amendments. These Bylaws may be amended or repealed by the approval of the Board; provided that any amendment or repeal shall have the approval of at least six (6) Directors and shall be effective only upon the Member's written approval given in accordance with Section 5 of Article 2. [:/124181_ 4.DOCl041806/J616.002:ApriI18, 2006] 11 THIS IS TO CERTIFY THAT: That I am the duly elected, qualified and acting Secretary of the Bayside District Corporation and that the above and foregoing Amended and Restated Bylaws were adopted as the Bylaws of said corporation on the :1.7 f11 day of II r>/f I L ,2006 by the Board ;ofDirectors thereof and approved by the Member thereof. IN WIlNESS WHEREOF, I have hereunto set my hand this ,2006. I !/A. daYOf~ [:/124181_ 4.DOC/041806/3616.002:ApriI18, 2006] 12