CC Minutes - 05/08/06 Work Session

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contract could be renegotiated if deemed appropriate. Ms. Jones replied that the contract had a five-year duration; however, if there was “good cause,” the City had the ability to withdraw if the Cultural Policy Review Board deems it necessary. She added that Kesey Enterprises had been diligent in adhering to the City’s values. Ms. Jones assured the council that it would receive a report on the first year’s performance of this new arrangement. Mayor Piercy solicited a second round of questions and comments. 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. MINUTES—Eugene City Council May 8, 2006 Page 6 Work Session