Item 2A: Approval of City Council Minutes

Home Browse Search

Mr. Kelly spoke to the Roseburg Events Center and questioned why that area was able to bring in popular acts when it certainly faced the same challenges as Eugene. Ms. Niles said that an entity (such as the business community in Roseburg) funding such acts at a higher level in advance was a key to such success. Mr. Kelly reasoned that the Roseburg community did not offer a Hult Center with lineups such as the symphony, ballet, and opera company, and therefore there was a limited scope for cultural contributions. Mr. Kelly turned to the labor issue and said it was unfortunate the council was not involved in those discussions. He commented that the labor force was ill-treated in the process and expressed an understanding that the union had filed an unfair labor practices complaint. In response to a question from Mr. Papé?, Ms. Niles responded there were currently eight resident companies connected to the Hult Center and the City’s requirements for those companies have not changed: six performances during the September to May season; paid staff; locally based/non-profit, professional organization; “season ticket” offerings; and the provision of educational outreach activities to the community. She noted there was a question about the Opera’s viability at this time and a proposal to maintain its residency status would be reviewed by the Cultural Services Advisory Committee. Mr. Papé? voiced opposition to a policy allowing companies to lower their standards to remain a resident company. Ms. Bettman stated she favored lowering the threshold to retain the Opera in Eugene. She pointed out that profitability on the “private” side was related to the fact that there was taxpayer subsidy in providing the facility, land for parking, and intangible services. Ms. Bettman turned to the labor issue and said she regretted any profit that would be realized at the expense of the workers. She conceded that the City Manager retained purview over contractual services and therefore the City Council may have no role in aspects of the contract. Ms. Bettman asked if the vendors would pursue any sponsorships. Ms. Niles replied that vendors have a significant interest in supporting the venue but have had difficulty committing in the past as there was not a season for them to support. She said it was certainly an option. Mr. Loigman clarified that in addition to the $30,000 profit guarantee to the City by Kesey Enterprises, there was an additional guarantee of $2.00 for every ticket sold and there would be income to the City from food and beverage sales, parking fees, sponsorships, and cash donations. In addition, for the six months the concessionaires were in residence from May 1 to October 1 they were responsible for the maintenance and upkeep of the facility to the City’s standards as well as utility payments. Ms. Bettman reiterated that she did not receive the figures related to this information so she could not determine if it was a benefit for taxpayers. She suggested that as this arrangement was subsidized by the taxpayers and as there would be requests for sponsorships and banners for commercial entities, a banner thanking the citizens of Eugene for providing the venue/offsetting the cost was appropriate. Staff concurred. City Manager Taylor shared that one year ago, Ms. Jones informed him that it would be difficult to hold future events at the Cuthbert Amphitheatre, as the operation was in serious financial condition. She therefore recommended that the $50,000 allocation be put to other needs. However, following the adopted slogan by the City Council of The World’s Greatest City for the Arts and Outdoors, City Manager Taylor deemed that canceling the season at the Cuthbert was not an option. He spoke to the loss the City incurred from last summer’s season, which totaled approximately $100,000, and commented that to move forward with the privatization, it was realized the number of performances could be increased which would increase the vendors and, in turn, increase revenue flow. City Manager Taylor expressed that the Cuthbert was too important a community asset to the community to be closed. With regard to the labor issue, City Manager Taylor opined it was concluded it would be far better to have more work than no work at all. MINUTES—Eugene City Council May 8, 2006 Page 6 Work Session