OC Fairgrounds Organizational Needs Assessment Report

Board of Directors Agenda Report
MEETING DATE: JUNE 26, 2014 ITEM NUMBER: 9D
SUBJECT:
Presentation of Organizational Needs Assessment
DATE:
June 20, 2014
FROM:
Doug Lofstrom, OCFEC CEO
PRESENTATION BY: Bill Kelly, Kelly Associates Management Group

___________________________________________________________________
RECOMMENDATION
Information item only.
BACKGROUND
Bill Kelly, Kelly Associates Management Group, will present and discuss the
Organizational Needs Assessment. See attached.
32nd District
Agricultural Association
An Organizational Needs
Assessment of the Orange
County Fair and Event
Center
June 26, 2014
Prepared by
June 26, 2014
Mr. Stan Tkaczyk

Board Chair
32nd District Agricultural Association
88 Fair Drive
Costa Mesa, California 92626
SUBJECT
TRANSMITTAL OF ORGANIZATIONAL NEEDS ASSESSMENT OF THE ORANGE COUNTY

FAIR & EVENT CENTER
Dear Chairman Tkaczyk:

Kelly Associates Management Group LLC (KAMG) is pleased to present to you and the Board of
Directors our organizational needs assessment of the Orange County Fair & Event Center (OCFEC). We
were tasked to evaluate the efficiency and effectiveness of the current organization in terms of its
staffing, workload, processes and procedures, management, communications, flow of information, and
other matters and to make recommendations for possible changes.
The attached report begins by providing an Introduction regarding the purpose and scope of the study
as well as pertinent background information about the OCFEC. The Introduction is followed by a
summary of input received from our surveys and interviews with Board members, staff, stakeholders
and the community. We then document our findings and recommendations in the following categories:
Board of Directors/Chief Executive Officer
Organizational
Financial
Facility
Community Relations
Transparency
Governance
We appreciate the opportunity to serve the 32nd District Agricultural Association and are prepared to
assist in any follow-up actions the Board may wish to pursue.
Sincerely,
KELLY ASSOCIATES MANAGEMENT GROUP LLC
William R. Kelly
President/CEO
32nd District Agricultural Association
An Organizational Needs Assessment of the

Orange County Fair & Event Center
Board of Directors
Stan Tkaczyk, Board Chair
Ashleigh Aitken, Vice Chair
Douglas La Belle, Member
Joyce Tucker, Member
Kristina Dodge, Member*
Ali Jahangiri, Member*
Nick Berardino, Member

Barbara Bagneris, Member
Bao Nguyen, Member
Gerardo Mouet, Member

Sandra Cervantes, Member
Robert Ruiz, Member
*Former Members
Staff
Doug Lofstrom, Chief Executive Officer
Roger Grable, 32nd DAA Counsel - Manatt, Phelps and Phillips
Consultants
Kelly Associates Management Group LLC
William R. Kelly, President/CEO
Christine E. Kelly, Executive Vice-President
David A. Gruchow, Principal
June 26, 2014
An Organizational Needs Assessment of the

Table of Contents
Executive Summary ............................................................................................. i
Section I Introduction and Overview ...............................................................1
Scope of Work ..................................................................................................1
Background ......................................................................................................2
Financial Overview ...........................................................................................4
Section II Proposed Sale of Fairgrounds ...........................................................7
Overview of Proposed Sale ...............................................................................7
Sale of State-Owned Property .......................................................................7
Sale of OC Fairgrounds Moves Forward ........................................................8
Fair Sale Review Committee .............................................................................9
Establishing the Fair Sale Review Committee ................................................9
FSRC Findings and Recommendations ..........................................................9
Section III Survey Input/Participant Feedback .................................................12
SWOT Analysis ..................................................................................................12
Executive Staff and Employees .........................................................................13
Stakeholders.....................................................................................................15
Community Meeting Participants .....................................................................16
Fair Sale Review Committee .............................................................................19
Section IV Issues, Findings and Recommendations ..........................................21
Board of Directors/Chief Executive Officer .......................................................22
Recommendations ........................................................................................22
Organizational Issues ........................................................................................23
Organizational Impacts of Employee Perceptions .........................................23
Lack of Executive Leadership ........................................................................23
Staff Motivation ............................................................................................24
Organizational Structure ...............................................................................24
Financial Issues .................................................................................................27
Facility Issues ....................................................................................................29
Table of Contents
Community Relations .......................................................................................30
Transparency ....................................................................................................31
Governance ......................................................................................................32
Section V Implementation ................................................................................33
Tier 1 - Immediate Action .................................................................................33
Tier 2 - Defer Until CEO Appointment...............................................................33
Tier 3 - Long-Term Initiatives ............................................................................34
Tier 4 - On-Going ..............................................................................................34
Appendices
Appendix A
List of Participants and Correspondence Received
Appendix B
Community Meeting Notice and Attendees
Appendix C
Documents Reviewed
An Organizational Needs Assessment of the Orange

County Fair & Event Center
Executive Summary
On October 4, 2013, the 32nd District Agricultural Association (Association) issued a Request
for Proposal to interested bidders/proposers to conduct an organizational needs assessment of
the Orange County Fair & Event Center (OCFEC). This needs assessment was intended to
coincide with the Associations recruitment for a new Chief Executive Officer and to address a
number of organizational and staffing challenges the Association had been dealing with during
the past five years including the potential sale of the OCFEC site by the State of California.
The attached report begins by providing an Introduction regarding the purpose and scope of
the study as well as pertinent background information about the OCFEC. The Introduction is
followed by a summary of input received from our surveys and interviews with Board members,
staff, stakeholders and the community. We then document our findings and recommendations
in the following categories:
Organizational
Financial
Facility
Community Relations
Transparency
Governance
Proposed Sale of Fairgrounds

In order to provide context on the necessity for an Organizational Needs Assessment, it is
important to understand the circumstances surrounding the 2003 proposal by Governor
Schwarzenegger to sell off the Orange County Fairgrounds in order to raise revenue to help
offset the States growing budget deficit. It is also important to note the events involving the
formation of the OC Fair and Event Center Foundation and the subsequent community and
political upheaval that resulted.
In the wake of the controversy surrounding the proposed sale of the Orange County
Fairgrounds, the OC Fair Board approved the formation of the Fair Sale Review Committee
(FSRC) on March 22, 2012 and tasked it to review the processes and actions taken by OCFEC
relative to the proposed sale of the OCFEC property and to obtain background information by
reviewing written documents and interviewing stakeholders and other interested parties.
In its January 14, 2013 report to the OC Board, the FSRC noted several instances where the
actions of some staff and OC Fair Board members were inconsistent with established OCFEC
policies and industry best practices, especially as they related to the sale of the Orange County
Fairgrounds. The nine recommendations made by the FSRC reflected the following:
i
Organizational Needs Assessment
Board member training of applicable governing policies and procedures (i.e., BagleyKeene Act, conflict of interest, etc.).
Greater Board oversight of financial transactions
Repealing the existing State statutes that permit the sale of the OC Fairgrounds.
Clarifying the duties and authority of the Chief Executive Officer as well as his/her
relationship with the Board.
Addressing the specific issues associated with the Fairgrounds sale controversy (avoiding
any Attorney General conflict of interest and exercising greater control over contracts
for political advocacy).
Survey Input/Participant Feedback

A major part of the ONA process involved reaching out to a wide universe of stakeholders for
the purpose of seeking personal viewpoints regarding current needs and issues, clarifying
historical events, establishing or confirming factual background information, understanding the
application of processes and procedures, and soliciting recommendations for improving the
OCFEC facilities, programs and management. This outreach effort employed one-on-one
interviews with the Board of Directors, the Executive Staff and selected miscellaneous
employees as well as with Fair vendors, producers and organizers. The CEO also advised all Fair
employees that they could contact KAMG via confidential e-mail to offer input. Several
employees availed themselves of this opportunity to provide comments and opinions.
KAMG also conducted an advertised community meeting on March 11, 2014 at the OCFEC
Administrative Offices which was attended by approximately 30 individuals who were
encouraged to provide their own input. In addition, KAMG received a number of e-mails and
letters from community members who were either unable to attend the community meeting or
became aware of the ONA process and wanted to participate.
While the individual issues and observations noted during the outreach process were extremely
varied, a number of noteworthy themes emerged among nearly all the participants:
Board Member Involvement Most of the feedback received reflected concern over a
general lack of control and oversight exercised by the previous OC Fair Board. It was felt
that the appointed OCFEC officials need to re-orient themselves toward compliance
with adopted rules, regulations, policies, procedures and to exercise greater care in its
dealings with the Chief Executive Officer.
Executive Leadership For many within the organization, there has been a perceived
disconnection between CEOs office and the staff. Also, many comments suggested that
ii

the new CEO needs will need to continue to improve the professionalism of the
relationship with the Board.
Staff Motivation The controversy and upheaval resulting from the proposed
Fairgrounds sale, as well as recent executive staff turnover, has had significant negative
effect on employee morale and motivation.
Organizational Structure The OCFEC organizational structure has undergone several
adjustments in recent years with changes in reporting relationships, span of control,
resource allocation, workload, etc. Some now view the OCFEC organization chart as
excessively top-heavy and subject to adjustment based on an individuals abilities and
skills. It is also apparent that several employees in the organization may be misclassified
given the duties and responsibilities assigned.
Financial Issues Both the FSRC Report and comments received during the outreach
process highlight the need for greater attention in regards to financial controls,
reporting, auditing, etc. While the Chief Financial Officer has made significant
improvements to the OCFECs financial administration, limited staffing continues to
impede the implementation of comprehensive solutions.
Facility and Community Issues The input receive from both OCFEC stakeholders and
interested members of the community centered on how the facility is utilized, its
physical appearance, its impacts on the surrounding neighborhoods (i.e., sound, traffic,
etc.), and its future in light of the recent sale experience. There were also concerns
expressed as to how the OCFEC interacts with the community including the kinds of
programming that should be pursued.
Issues, Findings and Recommendations

The primary goal of the Organizational Needs Assessment was to conduct a constructive
versus destructive analysis of the OCFEC. In its Request for Proposal, the Board made it clear
that the ONA was not simply to be an assessment of what is, but a roadmap of what the the
organization could/should be. The unfortunate recent history involving the proposed
Fairgrounds sale has cast a cloud over the property, the staff and the community at large.
Based on KAMGs review of the data collected, the input received during the outreach
processes, and the application KAMGs knowledge of industry best practices, a series of findings
and recommendations have been developed to address immediate, short-term and long-term
organizational needs. This Section IV organizes KAMGs findings and recommendations by the
following subject areas:
Organizational Issues
iii

Financial Issues
Facility Issues
Community Relations
Transparency
Governance
Implementation
This report suggests 25 structural, programmatic, administrative, and cultural changes for the
OCFEC in order to help it address the current and future challenges facing the organization.
Some of these recommendations involve changes that could be addressed immediately while
others should be held in abeyance pending the appointment of a new Chief Executive Officer.
Many of the proposed changes could be accomplished in a one to two year timeframe while
others would be long-term. Finally, some of KAMGs recommendations, especially those dealing
with staffing allocations and employee classification issues, would require further study.
The next step in the process would be to review all of the recommendations, evaluate and
prioritize those changes that would have the greatest impact, and develop measurable goals
and objectives for implementation. Such an implementation plan would establish specific
timeframes for completing objectives as well as designating specific responsible staff members.
iv

Section I Introduction and Overview

This Introduction and Overview Section provides a summary of the purpose and scope of the
Organizational Needs Assessment (ONA) as well as a contextual overview of the organization.
Scope of Work
On October 4, 2013, the 32nd District Agricultural Association (Association) issued a Request
for Proposal to interested bidders/proposers to conduct an organizational needs assessment of
the Orange County Fair & Event Center (OCFEC). This needs assessment was intended to
coincide with the Associations recruitment for a new Chief Executive Officer and to address a
number of organizational and staffing challenges the Association had been dealing with during
the past five years including the potential sale of the OCFEC site by the State of California.
Kelly Associates Management Group LLC (KAMG) submitted its proposal to the Association on
November 15, 2013 and was awarded a contract by the OC Fair Board of Directors on
December 19, 2013. Actual work began in January 2014. Under the terms of this contract,
KAMG was tasked to evaluate the efficiency and effectiveness of the current OCFEC
organization in terms of its staffing, workload, processes and procedures, management,
communications, flow of information, and other matters and to make recommendations for
possible changes. The scope of KAMGs engagement with the Association reflects the following
tasks:
Monthly Status Meetings KAMG Project Manager will meet with Association staff on a
monthly basis to provide status updates.
Data Collection Conduct meetings with OC Fair Board members, OCFEC staff,
stakeholders and the community to solicit input on organizational needs (including a
SWOT-type analysis). Also, gather and review data sources such as budgets, workload
indicators, policies and procedures, etc.
Data Analysis From the data and information collected, perform an analysis of
organizational strengths and weaknesses, evaluate current practices and procedures,
and assess perceived and actual communication shortcomings (internally, publicly and
with the Board).
CEO Profile - Develop a management profile for a new Chief Executive Officer including
follow-up interviews with each member of the OC Fair Board of Directors.

Delivery of Final Report - Prepare and deliver the final Report of Findings and
Recommendations to the OC Fair Board of Directors and make a formal presentation at
the Boards pleasure.
KAMGs scope of work envisioned delivery of the final report and presentation to the Board by
the end of May 2014. Difficulties in scheduling and conducting stakeholder interviews and
community meetings caused these deadlines to slip by approximately three weeks.
Background
The OCFEC is located on a 150-acre site in the City of Costa Mesa, California, and serves as the
site for the Orange County Fair, Centennial Farm and Pacific Amphitheatre. In all, some 150
different events are staged at the facility each year, attracting over four million visitors. The
Orange County Fair runs for 23 days each summer with an
average attendance of 1,103,233. 1
In 1890, the original Orange County Community Fair
Corporation organized the first fair in the City of Santa Ana.
While the early focus was on agricultural/livestock exhibits
and horse racing, organizers began introducing carnival
entertainment after 1900. With the exception of brief stints
in Huntington Beach and Anaheim, the Fair remained in
Santa Ana until 1949 when it was moved to its present
location, the site of the former Santa Ana Army Air Base.
The property had been purchased by the State of California after it had established the 32nd
District Agricultural Association to operate the fair.
The California Department of Food and Agriculture (CDFA), through its Division of Fairs &
Expositions, oversees the 52 active state-wide District Agricultural Associations (DAAs) and the
network of 79 annual fair events. The purpose of these Associations is to (hold) fairs,
expositions and exhibitions for the purpose of exhibiting all of the industries and industrial
enterprises, resources and products of every kind or nature of the state with a view toward
improving, exploiting, encouraging, and stimulating them and for "Constructing, maintaining,
and operating recreational and cultural facilities of general public interest. 2 The nine-member
Boards of Directors in these Associations are appointed by the Governor of California to fouryear overlapping terms. The essential duties and responsibilities of the Board are:
History Past 12 Years: Themes and Attendance, Orange County Fair & Event Center, accessed April 23, 2014
http://www.ocfair.com/ocf2/about/History.aspx
2
California Food and Agricultural Code 3951

Fix the term of office, the amount of bond, salary, and prescribe the duties of the
secretary and of the treasurer
To manage the affairs of the Association
To make all necessary bylaws, rules, and regulations for the government of the
Association
To arrange for and conduct all activities on
Association property
To delegate, as it may deem advisable, any of the
powers which are vested in the Board to its officers
or employees 3
The Association is bound by the various State laws that
regulate expositions and fairs, particularly Division 3 of the
California Food and Agricultural Code. This includes the body
of rules promulgated by the CDFA for California fairs. In
addition, the management of the organization is subject to
the same laws, procedures and regulations that govern other
State departments and agencies such as civil service rules
and the Bagley-Keene Open Meeting Act. The OC Fair Board
of Directors has also adopted bylaws and governing policies not otherwise provided for under
other provisions in order to address specific operational requirements.
The CDFA performs the following functions for DAAs
Approve annual operating budget
Conduct fiscal and compliance audits
Review annual end-of-year statement of operations
Provide consultation to boards and staff on state policies and procedures
Facilitate personnel transactions
Analyze fair related legislation
Approve contracts and carnival bid packages
Emergency service coordination
The OCFEC is a class level VII operation which is the highest level and is based upon operating
revenues. There are only 5 level VII fairs in the state. The other level VII sites are the California
State Fair and Exposition, San Diego Fair, Alameda County Fair, and the Los Angeles County Fair.
3
California Food and Agricultural Code 3965
Financial Overview
The Associations fiscal year begins on January 1st and ends on December 31st. For the 2014
fiscal year, the adopted operating budget is $29.7 million against estimated operating revenue
of $32.9 million. In addition, the Board has authorized some $1.5 million for major projects and
capital expenditures, leaving an operating cash balance of $1.7 million for the year. Exhibit 1
shows actual and budgeted operating revenues and expenditures since 2010.
Figure 1
OCFEC Operating Revenue and Expenses
Source: Orange County Fair & Event Center 2014 Operating Budget and Capital
& Major Projects Expenditure Plan
Revenue projections are based on a rolling four-year average and are adjusted for any known
variations from the previous year. Budgets for full-time staff reflect the anticipated full year
costs for these positions while part-time temporary staffing is budgeted at the previous fiscal
years actual cost. Non-personnel related expenses are based on a 3% increase over the
previous fiscal years estimated actual cost. All budgeted expenses that are based on previous
years experience have been adjusted for any known variations in the new fiscal year.
Exhibit 2 shows the distribution of 2014 operating expenses by major category:

Figure 2
Distribution of 2014 Operating Expenses
Source: Orange County Fair & Event Center 2014 Operating Budget and Capital & Major Project
Expenditure Plan
For 2014, the OCFEC has budgeted 92 full-time and 147 full-time equivalent seasonal part-time
employees. In addition, over 1,500 individuals are hired each year to support the Orange
County Fair events. Based on the 2014 organization chart, the OCFEC functions are divided into
two major management levels reporting to the Chief Executive Officer with a series of
department charters at the next level. Management and departmental levels are depicted in
Table 1 below:
Table 1
OCFEC Management Levels
Chief Financial Officer
Director of Accounting
Director of Events
Director of Human Resources
Director of Facilities
Admissions
Business Services
Chief Business Development Officer

Director of Marketing
Director of Community Relations
Director of Entertainment
Director of Communications
Director of Planning/Presentation
CPMG Contractor
Creative Services
The OCFECs operating budget is organized into five business units:

Self-Produced Events
Year-Round Events
Market Place
5

Pacific Amphitheater
Support Services/Outreach
Of the total annual operating revenue realized by the OCFEC, some 64% is generated by the
two major self-produced events: the annual Orange County Fair and Imaginology (formerly the
Youth Expo). Exhibit 3 shows the allocation of fiscal year 2014 revenues and expenses among
the business units.
Figure 3
2014 Operating Revenue and Expenses by Business Unit
Source: Orange County Fair & Event Center 2014 Operating Budget and Capital & Major Projects
Expenditure Plan

Section II Proposed Sale of Fairgrounds

In order to provide context on the necessity for an Organizational Needs Assessment, this
Section provides a discussion regarding the States proposal to declare the Orange County
Fairgrounds property surplus and sell it off. It also summarizes the issues surrounding the
establishment of the OC Fair and Event Center Foundation and the appointment of the Fair Sale
Review Committee.
Overview of Proposed Sale

SALE OF STATE-OWNED PROPERTY 4
Shortly after his election in 2003, Governor Arnold Schwarzenegger and his administration
began to actively seek alternatives for overcoming the growing deficit in the States budget that
did not include raising taxes and fees. In May 2004, he ordered a review of the States process
for disposing of publicly-held land and the identification
of potentially high value properties that were considered
to be underutilized.
Just prior to the Governors initiative, former
Assemblyman John Campbell floated the idea of possibly
moving the Orange County Fair from its Costa Mesa
location to the new Great Park development on the site
of the former El Toro Marine Air Station in Irvine. It was
suggested by Assemblyman Campbell that such a
relocation would allow for the sale of the existing
fairgrounds, making the proceeds available for helping to
reduce the State deficit. It was speculated at the time
that such a relocation and sale could net the State some
$200 million.
In the summer of 2004, the California Performance
Review Commission circulated its report for review and comment. Among the 1,200
recommendations, five related to the sale of property. The report also noted that the
Commissions belief that the Orange County Fairgrounds were underutilized conflicted with the
stated position of the Department of Food and Agriculture. Shortly after the release of the
4
Much of this Overview is excerpted from the report by the Fair Sale Review Committee, submitted to the OC Fair
Board on January 14, 2013.

report, the OC Fair Board conducted a public hearing on the issue of utilization and adopted a
resolution stating that the fairgrounds were highly utilized and should not be sold as surplus
property.
As a result of the actions taken by the OC Fair Board, the final Commission report submitted to
the Governor acknowledged the cultural and educational value of the property, as well as its
role in regional disaster preparedness, and found that it was not underutilized property.
Five years later, the Governor again began entertaining the notion of selling certain landmark
properties throughout the state in order to raise funds for deficit reduction (including the
Orange County Fairgrounds). As before, the proposal was met with widespread public criticism
and was subsequently dropped.
SALE OF OC FAIRGROUNDS MOVES FORWARD
Notwithstanding the 2004 California Performance Review Commission findings regarding the
utilization of the Orange County Fairgrounds, the California Legislature adopted ABX4 on July
23, 2009. This was a budget trailer bill which allowed for the sale of the Fairgrounds and
established a mechanism for the sale. The bill did not include any other landmark properties.
Concurrently, the OC Fair and Event Center Foundation filed for incorporation with the
California Secretary of State. The Foundation, which ultimately included a majority of the Board
of the 32nd DAA, was formed for the purpose of purchasing the Fairgrounds.
Subsequently, three efforts to sell the
fairgrounds were undertaken. These included an
auction won by Craig Realty in January 2010, a
negotiated sale process to the City of Costa
Mesa in partnership with FMW running through
spring and summer of 2010, and a sealed bid
won by FMW in October 2010. In November
2010, a lawsuit was filed by vendors of the
OCFEC and a temporary restraining order was
issued halting the sale.
Although ABX4 22 is still technically in effect, none of the sales were completed and Governor
Brown has indicated that the disposal of the fairgrounds is not currently being considered.
Fair Sale Review Committee

ESTABLISHING THE FAIR SALE REVIEW COMMITTEE
In the wake of the controversy surrounding the proposed sale of the Orange County
Fairgrounds and the establishment of the OC Fair and Event Center Foundation, the OC Fair
Board approved the formation of the Fair Sale Review Committee (FSRC) on March 22, 2012. A
scope of work for the FSRC was then adopted which included:
Complete an independent review of the processes and actions taken by OCFEC relative
to the proposed sale of the OCFEC property.
Review written documents and conduct interviews with stakeholders and other
interested parties to obtain background information.
Prepare a report for submittal to the OC Fair Board that includes findings, conclusions
and recommendations for the Boards consideration and action.
The 12-member FSRC was chaired by a former police chief and included four former Orange
County city managers, two members of the Fair Preservation Society, two OC Marketplace
vendors, a member of the equestrian community, an OCFEC employee, and a neighbor who
lives in close proximity to the Fairgrounds. Three other OCFEC employees were also assigned as
staff support.
The FRSC completed its work and submitted its
report to the OC Fair Board January 14, 2013.
FSRC FINDINGS AND RECOMMENDATIONS
During its review, the FSRC found several
instances where the actions of some staff and
OC Fair Board members were inconsistent with
established OCFEC policies and industry best
practices, especially as they related to the sale
of the Orange County Fairgrounds. The FSRC
made the following recommendations 5:
1. That all Board members when appointed
and executive staff should participate in
annual training regarding the Bagley-Keene
5
Report of Fair Sale Review Committee, January 14, 2013

Act, all applicable State requirements, ethics training, conflict of interest, public records
requests and Board Policies. (Recommended to be accomplished within 90 days). Advisory
sub-committees of any size should be properly noticed and open to the public in
accordance with State Law.
2. That every expense billed through a Joint Powers Authority (JPA) be reviewed and
approved retroactively by the Board as part of the monthly Consent Calendar, and the
Association maintain all copies of associated contracts and billing statements on site.
The Board of Directors should carefully review all contractors/sub-contractors
arrangements in light of the LSA circumstances as identified in the report.
The Board of Directors should request an investigation by the Brown administration to
review the role of California Construction Authority (CCA) now doing business as
California Fairs Financing Authority (CFFA) working within California Fair Services
Authority (CFSA) relating to the sale of the OC Fairgrounds and recommend policies and
procedures to improve.
The Board of Directors should put into place safeguards to insure that there is complete
understanding of the State entities that provide services to the 32nd DAA and provide
oversight as needed.
3. That staff should continue the current practice of including a list of warrants paid each
month in materials provided for each Board meeting.
4. That the Board of Directors work towards repealing ABX4 22, permitting the sale of the
fairgrounds and the establishment of the 32a District Agricultural Association.
5. That the Board of Directors retain an independent forensic auditor to determine if any
public funds were spent for the formation and or the benefit of the OC Fair & Event Center
Foundation or its members. This audit would also attempt to determine the total amount
spent by the Board of Directors to promote the sale of the fairgrounds. Suggested
expenditure of $10,000. The board should consider expanding the audit to examine
additional contracts to determine whether similar arrangements occurred.
6. That the DAA adhere strictly to Policy 3.1 (only officially passed motions of the Board are
binding on the CEO) regarding direction of the Executive office from the Board of Directors.
7. That the Board of Directors adopt a policy stating: The Board of Directors shall take no
action which would result in the withdrawal of representation by the Attorney Generals
office as a result to individual board conflicts.
8. That the Board of Directors adopt a policy stating: any contract for political advocacy must
be pre-approved by the Board of Directors.
9. That the Board of Directors should continue to review the CEO signing authority on an
annual basis.
10

Following receipt of the FSRC report, the OC Fair Board voted to adopt Recommendations 1, 2,
3, 4, 6, 7, and 8 as stated (Recommendation #1 was modified to include a request to the
Attorney General for clarification as to committee structures). In addition, those
recommendations regarding operational oversight have also been incorporated into the Board
of Directors Governing Policy Manual.
The Boards action relative to Recommendation #5 (conducting a forensic audit) was to turn the
FSRC report and all supporting documentation over to the Orange County District Attorney with
a recommendation that that Office conduct the forensic audit. These documents were sent on
March 18, 2013. For Recommendation #9 (CEO signature authority), the Board voted to
establish a limit of $50,000 for non-budgeted expenses and $300,000 for entertainment
guarantees (this was also incorporated into the Governing Policy Manual).
11

Section III Survey Input/Participant Feedback

A major part of the ONA process involved reaching out to a wide universe of stakeholders for
the purpose of seeking personal viewpoints regarding current needs and issues, clarifying
historical events, establishing or confirming factual background information, understanding the
application of processes and procedures, and soliciting recommendations for improving the
OCFEC facilities, programs and management. This outreach effort employed one-on-one
interviews with the Board of Directors, the Executive Staff and selected miscellaneous
employees as well as with Fair vendors, producers and organizers. The CEO also advised all Fair
employees that they could contact KAMG via confidential e-mail to offer input. Several
employees availed themselves of this opportunity to provide comments and opinions.
KAMG also conducted an advertised community meeting on March 11, 2014 at the OCFEC
Administrative Offices which was attended by approximately 30 individuals who were
encouraged to provide their own input. In addition, KAMG received a number of e-mails and
letters from community members who were either unable to attend the community meeting or
became aware of the ONA process and wanted to participate.
All comments and opinions have been incorporated into this report and a listing of participants
is included in Appendix A.
SWOT Analysis
In order to assess the factors that both constrain and enable the OCFEC organization, KAMG
employed a SWOT analysis approach to the participant interviews and community meeting. The
goal of a SWOT analysis is to help specify organizational or project goals, identify internal and
external factors that can help or hinder goal achievement, match strengths and opportunities,
and convert weakness and threats to strengths and opportunities. While most of the comments
and observations generated through this process tended to
focus on the issues surrounding the proposed fairground
sale, it was not uncommon to hear input regarding the
streamlining of OCFEC processes, strengthening
interpersonal relationships and community outreach,
controlling costs, improving communications (both internal
and external), and dealing with the Fairs impacts on the
surrounding community (i.e., noise, traffic, etc.). Many of
the Opportunities identified were largely viewed by the
participants as actions that the organization should take to
address current challenges and threats.
12
The following will present the perceptions and viewpoints of the OCFECs strengths,
weaknesses, opportunities and threats as expressed by the participants. It is organized by major
group.
Executive Staff and Employees

Interviews were conducted with the Executive Management Team (EMT) and Strategic
Management Team (SMT). In addition, other employees from various levels of the organization
were interviewed.
STRENGTHS
Staff has significant institutional history
Strong customer service attitude
Cooperation among fair staff
Know how to run a FAIR
Good core values by the employees
Location is great
Employees work very hard
Good mid management employees
Passionate and dedicated staff
Excellent product
Good financial position
Good budget management
Good branding of the FAIR
Administrative building great place for community meetings
Employees typically handle the stress fairly well
Fair time is fun time
During the sale process the staff kept their heads down and did their job
Focused, dedicated and creative staff
Team work and community awareness
Like a family
13

Flexibility of staff operations with full and part time employees
WEAKNESSES
Have to use the State of California rules and procedures
Too many layers of supervision, with a lack of trust coming down to employees
Ideas are not allowed to trickle up
No operational side of the organizational chart
Management is not familiar with employees functions or tasks
Tension between fair emphasis and agricultural interest
Not using the property assets year round
Too much free use by non-profits
Marketing and Communications are split
Too many contractors versus FAIR employees
Employees need more training and development
Events and facilities should be 1 unit
Need annual employee evaluations
Need evaluation of supervisors by employees
Sub cultures between 2 sides of the organization (silo effect)
Poor vertical communication i.e. its always down
People leave the organization w/o any explanation
Past sale issues still linger
Too many changes without reasons why
State salary cap and low wages
Difficult state laws and procedures
Hard to recruit with State hiring procedures
Past history of sale still has staff on edge
Politically appointed Board of Directors
SB 741 Sale of the property legislation still pending
Turnover of CEO and Executive staff
Parking at peak events over whelms on and off site locations
14

Supervisors with no employees
Not enough written procedures
Internal processes take too long/very bureaucratictendency to become risk adverse
Certain employees are self-centered, not team oriented
Lack of organizational vision
OPPORTUNITIES
Need to celebrate accomplishments/source of togetherness
Hire more seasonal employees
Need succession planning
Need strategic vision
Move Human Resources to CEOs office
Analyze retirement schedules and impacts
Need position cross training to maximize a small number of employees
Reach out more to the community
Provide more educational and charitable activities/opportunities
With a new CEO coming, hopefully there will be a new positive environment
Need to provide partnerships with schools, museums and other fairs
Change perception of the OCFEC from just the fair time to all year round activities/uses
THREATS
State of California sale
Not growing the opportunities because of limited thinking
Continuing risk adverse decision making
Employee malaise caused by the sale politics
Not getting ahead of the message
Stakeholders
This group represented the vendors at Market Place, amusement operators, show and event
producers, the operators of the equestrian center and concessionaires.
15
STRENGTHS
Staff has significant institutional history
Employees are great to work with
Employees go the extra mile
Family oriented facility
Location/Location/Location
WEAKNESSES
Get mixed messages periodically i.e. make a decision then it gets changed up the line
Changing executives and then changing directions/policies
Micro management of issues
Conflicts between Board Members
OPPORTUNITIES
Implement the Master Plan
Close Gate 8
Move the Farm closer to the equestrian center
Think outside the box
Be more creative
THREATS
Not being open to outside input from users/vendors
Not thinking from a private business viewpoint
Community Meeting Participants

Among the approximately 30 individuals who participated in the March 11, 2014 Community
Meeting were residents living in proximity to the Fairgrounds, members of the Orange County
Fair Preservation Society, local business interests, etc.
STRENGTHS
Being a State/public agency keeps the property in the public eye
16

Re-emergence and growth of the Equestrian Center
Yin/Yang - On one side is the parking and the fact that it makes money. On the other
side are the equestrians and the free style of the property
Animals on site
Working farm
It is a public facility
It is in a good location in that it is freeway close and it allows traffic to be disbursed
quickly
It has flexible exhibit space
Saving the Gardens Building and making it a Veterans Museum
The Veterans Day events
Fair Board is responsible to neighbors
We have a Board now that cares
The Orange County Marketplace is a tenant that provides opportunities for the growth
of small businesses
The new Board is doing a good job
WEAKNESSES
The public meeting was not noticed on the OCFB Facebook page
Too much of the fairground areas is asphalted (paved)
The OCFB wants to make more money, versus protecting an agricultural asset for the
community
The OCFB Mission Statement is unclear, too long, and as a result, their vision is lost in
the words. In particular, more emphasis was on the words, and with results that
justify expenditure however, the historic vision was a vision of an economic engine
for small crafts and businesses
Not enough emphasis on animals, i.e. 4H-goats
The Board positions are political appointments, not long term with a vested interest
Gate 8, at Arlington and Tewinkle, is a safety and traffic hazard...There are no crosswalks
nor are there any traffic control measures for those waiting to parkThis negatively
impacts access to the neighborhoodFair gates used to be open for just two weeks, but
now they are open all year long...The Board should consider using Newport access
instead
17

The word agriculture was a last minute add to the Mission Statement
The executive staff (that was present during the sale) retaliates.there is a need for the
foundational problems of what happened to be corrected
This is more than a Fair. The Fair started as 17-days and is now 5-weeks..the traffic
problems now last too long
The Master Plan is not being followed
LED lights are too bright and the public does not like the sign...they are distracting and
create a cognitive capture
Sand rails for off-road vehiclesthe Monster Trucks were a noise problem (are they
gone or not)...the Speedway noise is also a problem and is getting louder.
Certain uses of Hanger can be noisy and disruptive to the nearby neighborhood
During the recession the Executive staff tried to close the Fairgroundsthey took
productive weekends away from the Marketplace in 2008the hours of operation were
not consistentthe Marketplace did not receive support from the Executive staff
The OCFEC became too greedy (i.e. they started charging for parking)
OPPORTUNITIES
The property should be more of a rural environment and the agriculture and farming
should be expanded
Honor Veterans when they come home
Centennial Farms Master Plan shows there is room for it to expand
Raise goats etc. for the enjoyment and education of children
Allow children more access to Centennial Farms
The Fair Board mindset should be that, Agriculture is first and foremost
The Fair property should be to enhance the experience and education of children
An onsite circulation analysis needs to be prepared in order to address traffic and
circulation issues
The Equestrian Center should be changed back to the 1985 Planthis will close Gate
8the Equestrian Center has been reduced from 15-acres to 7 -acres
It should be called Fairgrounds, not Fair
The Orange County Fair Board should unwind what has been done
Former Fair Board member and former staff should be interviewedsome of the new
employees were not part of the Ellis regime
18

Do not have as many concerts
Have concerts not attached to the Fair
Get more community input on the Master Planget the input during the Fair and focus
on the Agricultural Heritage
Take down the two large billboards along the 55-Freewaythey are an urban blight
Emphasis should be on being a good neighbor, and on the noise and traffic impacts
Support the long-term tenants at the Marketplace
Explore Wi-Fi options for the entire property
The Fairground activities are a chance to reunite and rejuvenate the family structure, i.e.
teenagers with parentsthere is something provided for all members of the family
Invite the neighbors to see what is happening at the Fairgrounds
Open communications and increase outreach efforts and be open to input from the
community (i.e., prepare and distribute a neighborhood newsletter)
The agricultural fair should not be viewed as a profit center
The Executive staff and Fair Board need to get in line with the community
The Orange County Fair organization needs leadership
The new CEO should be A-political
Have an area reserved for horse police for Costa Mesa Police...This will institutionalize
the history
THREATS
The Amphitheater sound, traffic, programming, etc. creates traffic log jams and
community issues
Year-round Amphitheater operation
Sound mitigation is sensitive and requires a competent sound engineer
The confusion over who owns and operates the property, the Fair Board or the State

In order to follow up with the Fair Sale Review Committee, an invitation to meet was circulated
and four (4) of the original 10 members met to participated in a SWOT analysis and discuss the
ONA and CEO profile.
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STRENGTHS
Publicly owned, freeway access
Multi use site
Significant county history
Regional emergency services center
Agricultural and history center
WEAKNESSES
Recent political turmoil
Transparency (public records/salaries/benefits and related information)
Agricultural/equestrian uses loosing impact and value
OPPORTUNITIES
Public property to offer regional educational services
Focus on Agriculture, historical and educational activities
Restore community respect for the OFCEC
THREATS
State of California legislation still pending to dispose of the property
Lack of creative visioning processes
Too much bad history about the sale keeps coming up!
Not implementing the ONA
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Section IV Issues, Findings and Recommendations

The primary goal of the ONA was to conduct a constructive versus destructive analysis of the
OCFEC. As previously discussed, the ONA is not simply an assessment of what is, but a
roadmap of what the OCFEC could/should be. The unfortunate recent history involving the
proposed Fairgrounds sale has cast a cloud over the property, the staff and the community at
large.
The OCFEC offers a place to gather, celebrate and reflect on Orange Countys agricultural roots,
its historic impacts and its contribution to a growing county. At the same time, the Fairgrounds
can offer new opportunities for educational connections, technological demonstrations and
community events and activities.
Part of the assessment was also to examine other fair operations and seek out best practices
relative to organizational structures, goals and objectives, and processes and procedures.
Several fair centers were reviewed and KAMG concluded that the Los Angeles County Fair
(FAIRPLEX) and the Calgary Stampede provided good examples for consideration. Although
these fairs are not operated under the jurisdictional umbrella of a statewide agency such as the
DAA, their operations, goals, venues and activities closely resemble the OCFEC. FAIRPLEX and
the Stampede are 2 institutions that have positive professional reputations and have significant
community support and appreciation.
Based on KAMGs review of the data collected, the input received during the outreach
processes, and the application KAMGs knowledge of industry best practices, a series of findings
and recommendations have been developed to address immediate, short-term and long-term
organizational needs. This Section IV organizes KAMGs findings and recommendations by the
following subject areas:
Financial Issues
Facility Issues
Community Relations
Transparency
Governance
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In order to move forward in a positive fashion, the path to the future must be made clear.
Without a vision of where you are going, an organization loses momentum and drifts. In their
book Leaders, the Strategies for Taking Charge, University of Southern California faculty
members Warren Bennis and Burt Nanus observed that American organizations are over
managed and under lead and that mangers do things right, but leaders do the right thing. 6
Given the fact that the OCFEC now has several new Board members and is recruiting for a new
Chief Executive Officer, it is a good time to begin creating the new vision, provide direction,
establish new goals and plot the path to the future.
All organizations need to engage in some form of strategic planning in order to define their
vision for the future. This planning process causes the organization to look at itself and define
goals, then create the vision, and establish core values. The following are some basic
definitions for these concepts:
Goals: Need to acknowledge that the property is State-owned, is in the public interest
and trust and that the governance must be totally open.
Vision: The statement must be made clear to avoid ambiguity or misperception. The
property was established with an agricultural goal and must reflect the past, present
and future needs of the citizens of the State, the County of Orange and the City of Costa
Mesa.
Core Values: These values need to put in place to insure that the community,
employees, vendors and operators as well as event attendees are respected and
treated with the utmost courtesy and attention.
RECOMMENDATIONS
Recommendation BD/CEO 1: Implement a visioning/strategic planning effort which
will address goals, the vision and establish core values. An emphasis should be placed
upon innovation, inclusion and diversity, and community education and service.
Recommendation BD/CEO 2: Conduct a team-building exercise for the Board and
Executive staff.
Recommendation BD/CEO 3: Insure that all Board Members upon appointment and
annually review the 32nd DAA Bylaws, the CDA Guidance for Fair Directors, the OCFEC
Bennis, Warren G., and Burt Nanus. Leaders: The Strategies for Taking Charge. New York: Harper & Row, 1986,
pg. 29
22

Board of Directors Governing Policy Manual, the most recent CDA Rules for California
Fairs and the Bagley Keene Rules and Regulations.
KAMGs assessment of organizational issues stemmed from the comments received during the
outreach efforts, its review of existing policy and procedure documents, and its analysis of
industry best practices as compared with current OCFEC operations. The following are KAMGs
findings and observations followed by specific recommendations for changes.
ORGANIZATIONAL IMPACT OF EMPLOYEE PERCEPTIONS
When identifying organizational strengths, the SWOT analysis consistently noted the exemplary
work of both the full-time, part-time/seasonal OCFEC employees.
Despite the changes in the chief executive and certain upper level staff positions, there is an
accepted belief among a segment of the staff that favoritism, unfair treatment, and ongoing
whistleblower lawsuits are continuing to inflame negative feelings and opinions throughout the
organization. While KAMG could not establish the credibility of allegations, appropriate review
needs to occur to address the underlying issues.
LACK OF EXECUTIVE LEADERSHIP
Because of the changes at the CEO level, there has been a noticeable lack of consistent
leadership. As a result, the team continued to functioned but with no vision resulting in a
ebbing of confidence and commitment. The Board realized it needed an interim solution while
the ONA was being conducted and while a new CEO was being recruited. The present CEO
(former VP of the OCFEC) was retained by the Board to calm the waters, improve the
professionalism of the relationship with the Board and give the employees a seasoned,
respected executive. From all indications during the outreach process, this goal has been
achieved.
Given all of the changes occurring at the executive levels, organizational processes have
become somewhat reactionary and incremental with several new rules and procedures being
promulgated in direct response to immediate issues without benefit of discussion or input from
those affected. This has sometimes resulted in the perception that change was occurring for
changes sake alone without any reason or rationale. This situation has been exacerbated by
the fact that the organization has come to rely on position knowledge of operational
practices and methods without adequate written rules or procedures.
23

STAFF MOTIVATION
Since the OCFEC is part of a larger bureaucracy that is governed by the State personnel rules
and procedures, its opportunities to address staff motivation issues through compensation
adjustments, benefits or career advancement are constrained. Alternative means for creating a
stronger employee team would include the institution of annual employee assessments,
opportunities for employee development and training, job sharing and cross training, as well as
a comprehensive succession planning program. Given the potential for significant future staff
turnover due to retirements, the OCFEC needs to explore and implement other programs to
stimulate employee attitudes and satisfaction.
ORGANIZATIONAL STRUCTURE
Numerous comments and opinions were also offered that pointed to an organizational
structure that is top heavy and organizationally confusing. It was also noted that there were
supervisors without any direct reports, while some supervisors appeared to have too many
direct reports. After a review of several years of different OCFEC organizational charts, it
appears that the structures have been periodically changed to accommodate and match
individual(s) skills
To better understand fair operations, KAMG reviewed the organizational structures of the Los
Angeles County FAIRPLEX and the Calgary Stampede. During this review, we noted structures
organized around facilities/operations, marketing and customer relations, and finance/
accounting. In the case of the OCFEC, there tends to be confusion about the roles and
responsibilities of the two current operating groups (Financial and Business Development). This
confusion also extends down to the position descriptions for all of the senior executives and
managers. For example, the current marketing, communication and creative functions are
mixed between both operating groups which has the effect of reducing efficiency and
operational expediency for lower level staff members.
After reviewing these issues and applying appropriate spans of control, KAMG recommends
that all marketing and communication functions be consolidated into one group and that the
finance and accounting functions be consolidated into a second group. We also suggest that a
third group be established that would include all maintenance and facility operations functions.
The SWOT analysis that KAMG conducted indicated that during the organizational upheaval
resulting from the Fairgrounds sale controversy, many OCFEC employees began to sense a
disconnection between the CEO and the staff. This credibility gap continues to fester despite
the efforts put forward by the present CEO, the CFO and the Director of Human Resources to
correct inappropriate processes and behavior. Consequently, KAMG recommends that the
Human Resources function be placed under the CEOs auspices until such time as the new Chief
Executive can review this function and address the issues identified in the ONA. KAMG believes
24

that such a reassignment of the Human Resources function will help reestablish the credibility
of the CEOs office.
Further, the Executive Assistant position that currently provides support to the CEOs office
appears to be performing complex and technical duties more often associated with a
Management Assistant or Administrative Analyst position. KAMG recommends that this
position be reviewed in regards to a possible reclassification.
The following is a brief summary of suggested functional divisions with their new names:
Figure 4
Suggested OCFEC Functional Allocation
Division
Chief Executive Officer
Functions
Administration
Human Resources
Business Development
Public and Customer Relations
Communication Designs
Government Relations
Education
Vendor/Entertainment Coordination
Accounting
Budget
Purchasing/Contracts
Information Technology
Public safety
Parking
Facility Management and Maintenance
Food & Beverage Administration
Marketing and Communications
Finance and Administrative Services
Maintenance and Facility Operations
Based on the employee feedback received during the outreach process, there is a notable
perception that the current placement of Human Resources under the Chief Financial Officer
has created a sense of disconnection between the employees and the CEO.
The proposed allocation of functions enumerated above would produce the following
organization chart:
25
Figure 5
Orange County Fair and Event Center
Proposed Functional Organization
Since most of the subordinate managers of the functions beneath each Division are already
classified as Director, it is recommended that head of each of these Division be assigned a
new classification title as follows:
Executive Director of Finance & Administration
Executive Director of Marketing & Communication
Executive Director of Maintenance & Facility Operation.
RECOMMENDATIONS
Recommendation ORG 1: Implement the proposed organizational structure as outlined.
With the implementation of the new structure, review each of the Executive Director
and subordinate Director position descriptions and make amendments as necessary to
26

reflect new and/or changed responsibilities. Evaluate the Executive Assistant position
relative to reclassification to a Management Assistant/Administrative Analyst.
Recommendation ORG 2: Perform a span of control study to determine appropriate
reporting relationships, re-organize and reclassify appropriately.
Recommendation ORG 3: Create a team of executive, middle management and
miscellaneous employees to address Succession Planning.
Recommendation ORG 4: Create an Employees Advisory Committee (EAC) to advise the
CEO on programs/activities/communication tools that can be used to open
organizational wide communication and foster employee improvement.
Recommendation ORG 5: Initiate client centric training for employees to improve
communications and interactions with vendors, exhibitors, teachers, non-profits, etc.
Recommendation ORG 6: Place the Human Resources function within the CEOs office
until such time as a new CEO has an opportunity to review this function.
Recommendation ORG 7: Develop, where necessary, appropriate written rules and
procedures to reduce the organizations reliance on position knowledge.
Recommendation ORG 8: Institute annual Performance Evaluations for full time and
regular part time employees.
Recommendation ORG 9: Analysis of the use of part-time and seasonal employees to
determine the cost effectiveness of transitioning functions to full time positions.
Financial Issues
According to the California Department of Food and Agriculture (CDFA) there are 79 fairs and
76 fairgrounds throughout the State. The CDFA monitors the District Agricultural Associations
(DAAs) which constitute about two-thirds of the network. Until recently, the CDFAs Division of
Fairs and Expositions annually provided financial assistance to fairs whose income was
insufficient to meet operating and capital expenditures. The money came from the Fairs &
Expositions Fund which was largely supported by the States General Fund through the
allocation of pari-mutuel horse racing revenues. However, beginning in fiscal year 2011-12, this
funding was eliminated and fairs will have to depend completely on their self-generated
revenues to operate beginning January 1, 2012. 7 Consequently, a significant number of
California fairs are currently at risk of insolvency.
The CDFA utilizes a system for classifying fairs based on a five-year average of total operating
California Department of Food and Agriculture, Network of California Fairs 2011 /2012 Expenditure Plan, April 28,
2011, pg. 2
27

revenues for each fair, not including state allocations, one-time funds (grants and extraordinary
events). As of fiscal year 2011-12, there were seven Class VII fairs in California with annual
revenues over $10 million:
San Diego County Fair
Orange County Fair
Alameda County Fair
Los Angeles County Fair
California Exposition & State Fair
Unlike cities and counties that receive sales tax, fairs do not receive any apportionment of the
sales tax generated on their properties. The OCFEC is completely dependent on annual
revenues generated through its operations to support operating and capital expenses.
In its January 2013 report, the Fair Sale Review Committee noted several unusual financial
transactions that occurred between the OCFEC, other State agencies and certain consultants.
These observations pointed out the need to implement reforms in the OCFECs accounting and
reporting procedures including Board review of expenses, approval of monthly warrant lists, a
forensic audit, CEO signature authority, etc. Although some of these recommendations are still
under review, many corrective actions have been taken by the Board of Directors to prevent
similar actions in the future.
Since the Fairgrounds sale crisis, the Chief Financial Officer has made significant improvements
to the OCFECs financial administration. However, limited staffing continues to impede the
implementation of comprehensive solutions other than administrative and procedural issues.
Greater fiscal oversight is critical given the multi-faceted operations on the property and the
diversity of financial transactions that occur (from cash to credit cards). Although a series of
very good fiscal reports are now being prepared, there is still a need to insure that the Board
and the public has an understanding of operational expenditures and revenues within the
context of organizational efficiency and accountability. The CDFA performs a somewhat cursory
annual review of each Fairs financial operations (cash, expenses, reserves, etc.), but does not
conduct an annual audit. Comments received during the outreach process , as well as the
findings of the Fair Sale Review Committee, suggest a need for additional audit/best practices
review. KAMG suggests that an outside financial/auditing firm be retained to assist the Finance
and Administrative Division address some of the existing issues that have been identified.
RECOMMENDATIONS
Recommendation FIN 1: Solicit proposals from finance/accounting firms to conduct an
in-depth audit of the OCFEC, with an emphasis on cash management, policies and
procedures and suggestions for best practices implementation, including performance
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reports for capital projects and reporting system for compliance purposes for any 501c3
users of the OCFEC.
Facility Issues
A Master Plan was
adopted in 2003 which
set forth the vision for
the physical
improvements to the
OCFEC property. During
the development of the
Plan, a high priority was
given to reaching out
and including the
community. An
important element of
the Plan was to emphasize the Fairs agricultural/historical importance. Presently, the OCFEC
Board has focused on creating community-oriented monuments to Orange Countys veterans
and workers and encouraging additional outreach initiatives for the Centennial Farm, a
signature element of the OCFEC.
With the exception of the Pacific Amphitheatre, the various exhibit halls, the Administration
Buildings and other appurtenant facilities, the site is predominately made up of asphaltic
concrete used for parking. The Master Plan divides the 150-acre property into the following
areas:
EQC
Amphitheatre
Northwest Village
Central Village
South Village
Festival Grounds
Southwest Village and
Northeast Village
In addition, the Master Plan approved by the Board addressed parking, circulation, signage and
infrastructure issues and provided for a phased implementation. Plan improvements have been
29

proceeding based upon scheduling and the availability of funds. At present, the most significant
project under construction is the improvements to the Pacific Amphitheatre.
During KAMGs outreach process, several
facility-related comments were received
dealing with the use/design of Gate 8, a
need for onsite directional signage to activity
centers, a lack onsite landscaping and issues
concerning noise from automotive/
motorcycle racing events.
RECOMMENDATIONS
Recommendation FAC 1: Continue with the implementation of the Master Plan based
upon available funding.
Recommendation FAC 2: Review the use/design of Gate 8 with the EQC users/
operators, the adjacent homeowners association in the area and the City of Costa Mesa.
Recommendation FAC 3: Review the signage element of the Master Plan, inclusive of
the need for onsite way finding signage to certain activity areas (i.e. Centennial Farms,
the EQC and other venue locations).
Recommendation FAC 4: Review the noise impacts of the vehicular venues by doing
noise testing before the activities are scheduled as well as during the events themselves
to mitigate neighborhood impacts.
Community Relations
The OCFEC property is both a local and regional community asset. It is widely known for its
annual Orange County Fair and Imaginology and the weekly Market Place, as well special
concert events at the Pacific Amphitheatre and other unique sporting and sales events.
Ironically, despite its historical roots the Fairgrounds are less known for agricultural,
educational or equestrian uses. Recently, the OCFEC has engaged in significant marketing
efforts to promote these last identified uses, generating very positive community and regional
interest.
Marketing and exposure is the key to adding success and value. This is especially important now
that California fairs must be financially self-supporting. A good recent example is the OCFECs
invitation to elected and appointed officials from Orange County cities and the County to tour
the facility, learn about the Fairs operations and discuss future opportunities. Such outreach
allows for greater exposure and solidifies connections to local government. Additional proactive
efforts to the community and stakeholders should be explored.
30
There is a concern expressed by external parties that 4-H and Future Farmer activities are
receiving less attention. Although this could not be substantiated, it needs to be addressed.
RECOMMENDATIONS
Recommendation COM 1: Create a Community Advisory Committee comprised of HOA
representatives, neighbors and interested citizens.
Recommendation COM 2: Create a Civic Advisory Committee comprised of
representatives (elected and appointed) from the City of Costa Mesa, the Costa Mesa
School District, the Orange County
Community College District (OCC) and
the County of Orange.
Recommendation COM 3: Create a
User Advisory Committee comprised of
representatives from the Fair
Preservation Society, Equestrian Users,
Wine Society, Vendors, nonprofits (4H
and related).
Recommendation COM 4: Create an
Educational Advisory Committee
comprised of representatives from the Costa Mesa School District, the OCC, the
University of California Irvine, Cal State Fullerton, Chapman University and other Fairs
and institutions.
Transparency
Public transparency websites allow public administrators and elected officials to be held to a
higher standard of accountability; not only among citizens but also amongst themselves. The
access afforded by online reporting promotes scrutiny and analysis which can ultimately help
combat financial mismanagement and fraud. In the long term, public transparency drives
improvements in the quality of governance, making a lasting impact across social, economic,
and political boundaries.
In light of the observations above, the OCFEC web pages are effective within the context of
marketing events and activities on the property. Most of the feedback KAMG received indicated
that users are able to navigate the events and activities pages very well. What is not so easy to
locate is information about the OCFEC organization. Board meeting dates and agendas could be
found, but information pertaining to financial/budget data, organization charts/structures,
salaries, etc. was either not accessible or very difficult to obtain.
31

RECOMMENDATIONS
Recommendation TRAN 1: On the About Us drop down menu on the OCFEC website,
add a single link to a new OCFEC governance page which would include Board meeting
information (i.e, meeting dates, agendas, meeting minutes), organization charts, the
adopted operating and capital budgets, audit reports, employment opportunities, salary
ranges for full-time, part-time and seasonal employee classifications, memorandums of
understanding or equivalent with bargaining groups, warrants paid by vendor name and
amount, RFQs/RFPs, lobbyists retained, expense reports, etc.
Governance
The issues associated with the proposed Fairgrounds sale, along with the resultant Fair Sale
Review Committee Report, generated serious mistrust of the previous Board of Directors and
Executive staff by both the public and other OCFEC stakeholders, including employees. The
major themes that eventually came out of this situation focused on the need for the OCFEC
Board of Directors to conform to state meeting laws and to address a lack of transparency from
a public policy perspective. Since that time, a new Board has been put into place, recruitment
has begun for a new CEO and an organizational needs assessment was ordered to hopefully
begin in a positive direction. Further, as recommended in the Fair Sale Review Committee
Report, the Boards relationship with the CEO has been redefined and his/her approval
authority for retaining professional services and approving contracts has been clarified.
RECOMMENDATIONS
Recommendation GOV 1: Implement the recommendations in this report.
Recommendation GOV 2: Follow-up on the recommendations contained in the Fair Sale
Review Committee Report including the on-going training of Board Members about
their legal responsibilities as to the Bagley Keene laws, financial reporting, conflicts of
issue, ethics, etc.
Recommendation GOV 3: In the past, the OCFEC Board utilized a system of committees
whereby three members were appointed to address various topics and issues facing the
OCFEC. KAMG recommends that the Board evaluate the benefit of returning to this
practice in order to vet issues with the CEO, provide the Board with additional oversight,
and to expedite OCFEC business. Possible Board committees may include Finance,
Employee Relations, Legislation, and Construction.
32

Section V Implementation
This report suggests 25 structural, programmatic, administrative, and cultural changes for the
OCFEC in order to help it address the current and future challenges facing the organization.
Some of these recommendations involve changes that could be addressed immediately while
others should be held in abeyance pending the appointment of a new Chief Executive Officer.
Many of the proposed changes could be accomplished in a one to two year timeframe while
others would be long-term. Finally, some of KAMGs recommendations, especially those dealing
with staffing allocations and employee classification issues, would require further study.
Recommendation GOV 1: Implement the recommendations in this report, reflects the overall
direction suggested by KAMG for the OCFEC. The next step in the process would be to review all
of the recommendations, evaluate and prioritize those changes that would have the greatest
impact, and develop measurable goals and objectives for implementation. Such an
implementation plan would establish specific timeframes for completing objectives as well as
designating specific responsible staff members.
Tier 1 Immediate Action

The first five recommendations are those which could be implemented immediately and
include the following:
Recommendation ORG 6:
Relocate Human Resources function to CEOs office
Institute employee Performance Evaluations
Recommendation FIN 1:
Conduct financial and performance audit
Recommendation TRAN 1:
Implement website modifications
Recommendation GOV 3:
Establish OCFEC Board committees
Tier 2 Defer Until CEO Appointment

The Tier 2 Recommendations are those which should be reviewed and managed by the new
CEO. Consequently, KAMG suggests that they be deferred until a new CEO has been appointed
and that they be addressed within 6 to 12 months after that individual takes office.
Recommendation BD/CEO 1: Engage in strategic planning
Recommendation BD/CEO 2: Offer team-building for Board and Executive staff
33

Implement proposed organizational structure
Prepare Succession Plan
Form Employees Advisory Committee
Recommendation COM 1:
Form Community Advisory Committee
Form Civic Advisory Committee
Form User Advisory Committee
Form Educational Advisory Committee
Tier 3 Long-Term Initiatives

The Tier 3 Recommendations are long-term initiatives which should be addressed over the next
1 to 2 years:
Review span of control
Implement client-centric training
Adopt written rules and procedures
Analyze use of part-time and seasonal employees
Recommendation FAC 2:
Review the use/design of Gate 8
Review the signage element of the Master Plan
Review the noise impacts of the vehicular venues
Tier 4 On-Going
The Tier 4 Recommendations represent shifts in organizational cultural that should be
encouraged on an on-going basis:
Recommendation BD/CEO 3: Board member review of governing documents
Continue implementation of the Master Plan
Recommendation GOV 2:
Follow-up on FSRC recommendations
34
Appendix A
Appendix A
OCFEC Employees1
Sharon Augenstein , CFO
Nick Buffa, Guest Relations Supervisor
Jerry Eldridge, Director of Facilities
Dan Gaines, Director of Entertainment
Roger Grable Legal Counsel (Manatt, Phelps and Phillips)
Tamara Goddard, New Business Development
Joan Hamill, Director of Community Relations
Jason Jacobson, Director of Planning/Presentations
Bianca Kulbrick, Director of Human Resources
Elaine Kumamoto, Director of Accounting
Ruby Lau, Marketing Director
Teresa Mason, Events Coordinator
Jason Pope, Plumber
Michelle Richards, Chief Business Development Manager
Sabrina Sakaguchi, Communications Coordinator
Howard Sandler, Director of Events
Robin Wachner, Communications Director
Jeff Wilson, Executive Assistant to the CEO
Evy Young Guest Relations Supervisor
Stakeholders
Rick Hanson, EQC
Tom Hatch, City of Costa Mesa CEO
Guy Leavitt, Ray Cammack Shows
Tamara Letourneau City of Costa Mesa Asst. CEO
Andre Lopez Lopez Works
Ryan Miller, OC Market Place
Mike Robbins, Paradise Cigars
Jeff Thornberry, Pristine Systems
Sandra Genis
Lisa Reedy
Mike Robbins
Lisa Sabo
Theresa Sears
Others Interviewed
James Henwood, President/CEO, Los Angeles County FAIRPLEX
Vern Kimball, CEO, Calgary Stampede
Appendix A
Letters Received2
Debbie Cook
Friends of Harbors, Beaches and Park
Community Meeting
SEE APPENDIX B
1
2
Additional emails were sent from employees on a confidential basis

Additional unsolicited emails were received from other unidentified residents and other interested parties
Appendix B
Community Meeting Notice and Attendees
Appendix C
Documents Reviewed
Appendix C
Documents Reviewed
By-Laws of the 32nd District Agricultural Association
California Food and Agricultural Code 3001 et. seq.
California Department of Food and Agriculture, Network of California Fairs 2011/2012 Expenditure
Plan
California Department of Food and Agriculture, Division of Fairs and Expositions, Recommended
Guidance for Fair Directors
California Department of Food and Agriculture, Division of Fairs and Expositions, 2013 Rules for
California Fairs
Fair Sale Review Committee Report January 2013
Los Angeles County FAIRPLEX 2030 Strategic Vision
OCFEC Board of Directors Governing Policy Manual
OCFEC Master Plan 2003
OCFEC 2014 Operating Budget and Capital and Major Projects Plan
OCFEC Organizational Charts 2011 to 2014

OC Fairgrounds Organizational Needs Assessment Report

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OC Fairgrounds Organizational Needs Assessment Report

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Board of Directors Agenda Report

MEETING DATE: JUNE 26, 2014 ITEM NUMBER: 9D

Presentation of Organizational Needs Assessment

June 20, 2014

Doug Lofstrom, OCFEC CEO

PRESENTATION BY: Bill Kelly, Kelly Associates Management Group

June 26, 2014

Mr. Stan Tkaczyk

TRANSMITTAL OF ORGANIZATIONAL NEEDS ASSESSMENT OF THE ORANGE COUNTY

Dear Chairman Tkaczyk:

32nd District Agricultural Association

An Organizational Needs Assessment of the

Joyce Tucker, Member

Kristina Dodge, Member*

Ali Jahangiri, Member*

Nick Berardino, Member

Gerardo Mouet, Member

June 26, 2014

An Organizational Needs Assessment of the

List of Participants and Correspondence Received

Community Meeting Notice and Attendees

An Organizational Needs Assessment of the Orange

Proposed Sale of Fairgrounds

Orange County Fair & Event Center

Organizational Needs Assessment

Survey Input/Participant Feedback

Orange County Fair & Event Center

Organizational Needs Assessment

Issues, Findings and Recommendations

Orange County Fair & Event Center

Organizational Needs Assessment

An Organizational Needs Assessment of the Orange

Section I Introduction and Overview

Orange County Fair & Event Center

Organizational Needs Assessment

Orange County Fair & Event Center

Organizational Needs Assessment

California Food and Agricultural Code 3965

Orange County Fair & Event Center

Organizational Needs Assessment

Orange County Fair & Event Center

Organizational Needs Assessment

Chief Business Development Officer

The OCFECs operating budget is organized into five business units:

Orange County Fair & Event Center

Organizational Needs Assessment

An Organizational Needs Assessment of the Orange

Section II Proposed Sale of Fairgrounds

Overview of Proposed Sale

Orange County Fair & Event Center

Organizational Needs Assessment

Orange County Fair & Event Center

Organizational Needs Assessment

Fair Sale Review Committee

Report of Fair Sale Review Committee, January 14, 2013

Orange County Fair & Event Center

Organizational Needs Assessment

Orange County Fair & Event Center

Organizational Needs Assessment

An Organizational Needs Assessment of the Orange

Section III Survey Input/Participant Feedback

Orange County Fair & Event Center

Organizational Needs Assessment

Executive Staff and Employees