The Committee For A More Responsible Local 47

SPECIAL MEETING REPORT, MONDAY, January 4th, 2016

Member’s requested meeting:
Local to explain the financials.
Quorum reached (only nine needed for the CLUB meeting.)
Over 50 attended

——————————

The Salient Points of the meeting??

1) If you send in comments about the sale before Tuesday
night (TODAY!), they CAN get into the Overture going
out next week.

2) The impression was given that you rescind your vote if
you call the Local and have your ballot pulled. You can also
change your vote by requesting a replacement ballot. They
will count the NEWEST ballot.

3) Many, many, members were grossly misinformed by
the callers trying to get them to vote yes. In some cases,
wrongly telling members that the local is in $700,000
DEBT when it’s a $700,000 deficit. The Local has
Over $900,000 in reserve.

4) Other were given the impression that their pension
could be affected if we don’t sell. (It’s not at all true.)

5) While info was put on the website no financial
analysis was done, so people might not understand
what the numbers mean.

———————

John Acosta, Rick Baptist, Gary Lasley, Lewis Levy in front.
Called to order at 7:29

Re-iterated that it’s a Club Meeting, under the umbrella of Local 47.
If you’re a member of one, you’re a member of both.

Club can adopt rules, Club plays the bills.

Officer/Director Roll taken…

Secretary reports on the call of the meeting.

ISSUE I. Nullify ballots – deemed out of order
Counsel – Article 4 section 2 deemed it out of order.
Once ballots are issued they cannot be rescinded.

ISSUE II Postpose sale till membership has been fully informed.
Itemized list of requested info.
-2015 operational budget
-2016 comprehensive balanced operational budget
-Cash flow statements for 2013, 2014, 2015 and 2016 (estimate)
-Capital Expenditures for 2016 without moving
-Current balance sheet
-Capital Expenditures for 2016 for Burbank property
-Sales commission rate for sale of the building
-An explanation on how the sale of the building will increase
work for members
-A definition of “State of the Art”
-A business plan for spending money to make money.

Most were already in the Overture.
All info has been put up in a special place in the member’s
section of the website. Look there. —
Members only section – scales and documents – musicians club
OR
Time is now 47 Website – questions and answers –
dollars and cents – link from there.

– Realtors spoke on the subject.
Total Sales commission rate 3.5
Working with other buyer, maximum 2.5 percent.
Sale price approx. $24,000,000.

Some discussion on the amount of the commission between
Realtor and member.

Out of the commission, $100,000 would be donated back
to the Local 47 trust fund.

Member asked: Any new locations to look at buying?
Answer: Always looking – 2 other potential properties.
Burbank and North Hollywood.

Member: You don’t sell without having something else to by.
Realtor: We have some protections. – then said seller of Alameda
is eccentric and 93 years old..

Member: Any other offers on the Burbank building?
Realtor: No.

Member: What about these safeguards (contingencies)
Term of purchase are quite clear. Multiple offers on the 47 building.

Member: What plans do other have for this site that we couldn’t do?
Real: Have height restrictions. Any plans they have we don’t know.
We cannot refurbish the whole building and get it re-rented.

Member: When you advise an organization as a buyer/seller agent,
You should have two different advisors or there is a built in
conflict of interest. We cannot judge the accuracy of the
advice we’re being given if there are not multiple sources.
Real: We only represent the seller.

Member: Closing Costs – What are they?
President: $999,000 approximately.

Members: What are the financial plans:
President: Sell at highest price possible, buy another
building and re-service it for our needs. Use income
from the sale to pay bills and protect the core of the
money.

Member: Are you representing the buyer?
Realtor: It’s possible.

Member: We’re so central now, lots feel that the
value is not the only consideration.

Lots will lose touch with the union.

What other alternatives were investigated besides
building? Former President Fleischer wanted to
lease out part of the parking to make money.
President: Looking at Glendale North Hollywood,
Burbank. Majority of members are along that corridor.
5400 in California more than 50% are in that area.
Asked realtor to explain how 22 million is a lot of money.

Realtor: Offer is at 24,000,000. Commercial realty is
about what the market will bear. Put it out with no
price, and started getting offers around $18 mil.

Most of these buyers very sophisticated and very
knowledgeable. $24,000,000 is a pretty good price.

President: What about renovations?
Realtor: Union has 6 month lease back option
(Generally for $1)
After the 6 month period there’s a very reasonable
rate for renting.

Should be able to build out building in 6 months.
Anything over the agreed timeframe the builder
is fined.

Member: The previous member also asked what
OTHER alternatives to selling were seriously
looked at.

President: Under previous administration looked
at partnership with RED Studios to build parking
lot, but it was nixed. Also the possibility of a 99
year lease. The sale is what they decided to go with.

Member: What is a triple net.
Realtor: Person (Local 47) leasing back would still
pay their own insurance, utilities and property tax
till they move.

Member: This is a landmark. Not gonna find another
one anywhere. How about upgrading the building,
get an architect to design and re-do for the building.
The building is paid off! No money is owed.

President: Personally if we had the money to stay
and renovate we would. We don’t have the money.
Don’t want to leave the institution in debt. Grueling
decision. Not done in haphazard way.

Member: How about a campaign to raise money
from musicians, artists, composers to re-do the building.
President: If vote doesn’t pass that is one idea we
can look at. Have gotten many ideas. There’s no
owner’s manual on doing referendums, never been done before.
Meetings earlier might have helped.
(EC: Ya THINK?)

Member: How many have gotten calls? (Question could
not be understood) Aimless talking…

Member: We were told at the October 5th meeting
that we were $900,000 in the black. But a person
hired to make phone calls named Erich has been
telling members that we’re $700,000 in debt.

I personally don’t believe we’ve lost 1.6 million
in the space of two months.

President: We have a $700,000 DEFICIT, not debt.

Member: Were return calls made to those he talked to
make sure the “faulty” info is Corrected?

President: I called them personally.

One of the seniors spoken to was led to believe that
they could lose their pension if we didn’t sell the
building. While they’re not connects, the members
were left with that impression. Yet another indirectly
dishonest approach.

We all received the RA-RA postcard,… where was
the Local’s postcard from those who do NOT support
the sale?

President: The board decided if we did that it would
confuse the membership as to where the Local stands
on the sale.

Member: Aren’t you supposed to be IMPARTIAL?
President: We don’t have to be.

Member: If duplicate ballots are found, the most
recent ballot is counted.

Member: As for info, We sometimes get a minority
report… no such report has been given
Members was told that the local $700,000
in debt and he knows it’s wrong.

There was major dis-information put out, on both calls
he was told WRONG information. During 4 weeks,
between calls, these employees kept giving WRONG info.

Some members have reported that they’ve received
ballot envelopes without a ballot. Where are those
ballots?

President: Mail house made the mistake.

Director: Building is NOT historic, member for over the 30
years. Doesn’t have historic landmark status. It’s 7 miles
from here to the potential new building. 14 miles round
trip is not worth giving up a 9 million dollar windfall.

As far as tapping wealthy members? Good luck with that.
We have musicians relief fund, but this should not be a
strategy that we follow. Started talking about it a year ago.
Apathy is a big problem.

If we sell this and buy something else free and clear we’ll
still be free and clear.

Member: Advocate for the sale. Looking in the future, huge
Hollywood crime problem will only get worse. It might be
a good time to get out. Wants to commend the leadership
in moving forward.

Members: The building IS a historic site. Been reading
about group buyers each handling a different aspect.
It’s tough to get the information.
Asset, Liability, profit or loss, expenses,.. etc.
Joint venture idea is pretty cool. Someone could
by the building and flip it, why not have us be involved.

President: Perhaps using someone else’s credit score,..
how would that work?

Board adopted the sale as an issue. Don’t stop the
counting of the ballots, let the people speak.

Member: Ballots,..many for and many against?

Member: At the beginning you said it was a club
meeting. Also said there’s a connection with the
Local. The Club would not exist without the Local.
Don’t try to separate the two.
-Is no owners manual?,… but there are guiding principals,…
in a nutshell, 70 (Experience) 20 (Connection) 10

-Questions: Re: Revoking the ballot. Board decided it
was out of order. From a reading of the bylaws.
On that issue is there also a financial analysis on the site?
President: Nope just the info.
2221 Ballots have come in:

Member: Commend the board. I don’t believe everything
is a conspiracy.

Don’t know if it’s a good idea, but what’s important is
what’s in the best interest of the union. There are always
better ways to do things.

Not a good idea to try to manipulate an argument for
your agenda. All of the concerns are legit, but keep the
argument on the real questions not conspiracy.

Member: Members that didn’t get a ballot,.. is there a
number of the ballot? Is there no chance of “extra”
ballots appearing in the number.

All ballots have numbers on it, the number of the old
ballot is replaced with new ballot.

ISSUE III. All comments must be printed and special edition
Of overture sent out.
Special overture $6,000. 4- page. Is a major expense.
Postage is included in that price.

Is it worth sending out a special edition.
Secretary recommends no.
Member: RA –RA postcard. Postcard is $1,800
Members: How can the cost be the same” one is 4
color and one was black and white.

Color card went to member who’d not voted yet.,
Black and white went to all.

Members: I taught MBA and Law School, You can
reach out to folks to donate money. Silicon Valley,
Silicon Beach. It’s a historical building, I’m from
England $5,000 spent to FULLY inform members
of both sides of issue. It’s the right thing to doi..

Director: Special Issue – Bad Idea
Have a possibility of building a new future. We
felt it was important to sell the building. No one
spoke about it till now. Money in the bank,..
new leadership. Very proud to be a member
of the community. We’re professional musicians.

MEMBER:
While there were mentions concerning selling
since January, nothing was formally presented
till August. Only in passing.

Since we now know that many, many people
were given blatantly wrong info, some would
call them lies, mis-truths, it is more than
appropriate to set the record straight, or else
people can and will, and should say they
were misled into voting for it. There has been
blatant and apparently wide spread misdirection
and misinformation.

Member: No officers have tried to mislead us,
but that’s what people think. Union should
make a clear statement to the entire membership
the difference between 700,000 debt and 700,000 deficit.

Member: Question – If we get the new facilities,
we’ll duplicate the auditorium at the new location?
Practice rooms? Will there be input allowed in the
details of the build out. Should have 300 seat hall.

President. – There’s a building committee:
Mike Papenbrook, Lisa Haley, Mike Davis, plus two more.

Member: Special edition would be a good thing.

Member: If it’s $6,000 to send the edition, where does
the money come from
Pres: Local would pay for it.

President: Have section of next print overture with portions
of presentation and re-printing letters.

Member: Property tax here $45,000
In new place $125,000 (more than covered
by rents from restaurants.)
With a decent economy, can get 2-3 percent
On investments.

Closed debate:
I abstention. –

Vote whether to put out special edition of the overture.
Yes means print special edition
No means no special edition. Pres would try to make
sure the needed info would go out in the next print Overture.
Be in mailboxes end of next week.
Motion Fails – no special edition.

Member: Will there not be any debate in the mailing?
None was asked for. If you have more thoughts get
them in in the next 24 hours – By Tuesday afternoon
Member: If you vote yes. Special edition would go
out as soon as possible. It would be a couple of weeks.

Vote fails by a major margin:
President promises to put info in next Overture.

Meeting Adjourned After 9pm.

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