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. required. It is his intent to work in that direction. Ms. Smith asked if e volunteers or non-union stage hands in the small hall would reduce rental costs. Mr. Reynolds stated that it would not reduce rental costs but it could reduce reimbursables. The rent goes to pay for the overhead. Reducing reimbursables would save on the cost of usinQ the facility. Ms. Miller asked about the relative importance of revenue with quality and consistency of service. Mr. Reynolds stated that they are eaually important. The center must be fiscally sound and covered from potential liability. Ms. Miller noted that many local groups feel they cannot use the facility at these rates. She feels the negative effects of this would resound on the entire process. These local events must keep occurring but without deficits which the City cannot afford. This issue cannot be ignored. Mr. Reynolds stated that the commission considered this issue during public hearings. Testimony has created lower rates than the original proposed level. The result of this was the formula for the small hall. They have been responsive in every way they could. They are attempting to cover some of the costs. The small hall with projected usage has an overhead of $600 per day. Local users using the facility for more than one night would get it for $250 per day, which is a good reduction. However, in order to make up t~at money, they must have other income besides just rent. It will be a difficult transition for some to make, going from South Eugene auditorium or the University of Oregon facilities but the income potential is much greater and the environment will be ~uch better. More audiences will be attracted and higher standards will be set. He feels that audiences will pay more for good events and a comfortable atmosphere. Ms. Miller stated that finances must be balanced, but she asked Mr. Reynolds if they think by charging e more and trying harder, he feels local groups will make money. She feel s local groups are saying they cannot afford these rates and that their patrons will not pay them. Mr. Reynolds said if that is the case, and he has not heard that it is, he has not been told by the groups of what a fair rate would be. The center cannot give a better rate because they do not have surplus dollars. Their money is coming from Room Tax funds or the Eugene Arts Foundation which could also go directly to the groups. Their intent is to manage the facility as inexpensively as possible and to hire groups that are enjoyable. A problem has emerged in every city recently openinq a larqe center. There are some local groups that have no intention of usina the center. Others will have to under- stand that they may not need as lonq a run as they do in other facilities. Staff wants them to succeed because the community needs them. Many Federal grants require a strong local base for theatrical, dance, music, and symphonic fundinq. Those who do plan to use the facility will take advantage of the time to improve their organization and promote themselves to their audiences. Ms. Schue asked for an estimate of what reimbursables might cost before the meeting on November 10. Mr. Reynolds indicated that he would comply with her request by sending a copy of the memo which was sent to the groups, as it contained the maximum expenditures. Ms. Schue asked if this memo includes use of the formula and cost savings with volunteers. Mr. Reynolds responded that it does not but that it could be added. .' MINUTES--Euqene City Council November 5, 1980 Page 12