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<br />merchandise sales, parking and vending, which often do not cover their costs. Because of this, promoters <br />are looking for agreements that enable them to control all aspects of venue revenue and operations <br />expenses to minimize their financial exposure. <br /> <br />Cultural Services staff felt that it was economically imprudent to continue to hope the situation would <br />improve. Fewer “marquee” shows and lower attendance have resulted in a net loss of over $100,000 for <br />the 2005 season. Staff is aware, however, from community-wide and Cuthbert event surveys, that the <br />venue is still very popular with area residents. These surveys confirm the community’s appreciation, but <br />also document the disappointment generated by the decreasing number of events and activities. Upon <br />review of expected events for the upcoming season, staff considered canceling the season, but opted <br />against it because of the popularity of the venue and the focus on promoting Eugene as the “World’s <br />Greatest City for the Arts and Outdoors.” <br /> <br />Other options for the management and promotion of the facility were explored, in keeping with the City <br />Council’s endorsement of the existing Culture and Leisure Plan, adopted in 1985. The Cultural Services <br />Advisory Committee also reviewed the issue and recommended outside contracting as a possible way to <br />enhance usage. Although staff initiated discussions about the Cultural Policy Review (CPR) process, <br />which would include operation of all Cultural Services operations, a decision was made to go forward to <br />avoid under-utilization of the venue until that review was complete. Staff believes that the City has an <br />obligation to the community to maximize the use of this facility, and to offer quality programs that cover <br />a wide variety of preferences. <br /> <br />Staff was encouraged by the RFP responses and by the prospect that the winning proposal could <br />potentially bring back “higher profile” performers and protect the City from losing additional monies— <br />essentially shifting the risk of management and promotion. For the summer, two high profile acts are <br />scheduled, and staff has partnered with the University of Oregon to host the Willamette Valley Folk <br />Festival. Cultural Services staff feels that this agreement is a positive step for the City and for Cuthbert <br />patrons for the following reasons: <br /> <br /> <br />?The community will benefit by the anticipated activity level increase at Cuthbert. <br /> <br />?Cultural Services Division is relieved of the high financial risks associated with managing and <br />promoting popular entertainment at Cuthbert. <br /> <br />?The revenues are stabilized with guaranteed payments, and have the potential of additional, <br />ancillary, revenue-generating activities. <br /> <br /> <br />RELATED CITY POLICIES <br /> <br />City Council Goal:Accessible and Thriving Culture and Recreation <br />? <br /> <br /> <br />City Council Priority Issue: Strengthen and Promote Community “Arts and Outdoors” Assets <br />? <br /> <br /> <br /> <br />COUNCIL OPTIONS <br /> <br />Because this is an update session only, no City Council action is required. <br /> <br /> <br />CITY MANAGER’S RECOMMENDATION <br /> <br />Because this is an update session only, no City Manager recommendation is required. <br /> <br /> <br /> L:\CMO\2006 Council Agendas\M060508\S060508B.doc <br /> <br />