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HomeMy WebLinkAbout06/08/1987 Meeting M I NUT E S e Eugene City Council Dinner/Work Session Wildish Room--Eugene Conference Center June 8, 1987 5:30 p.m. PRESENT: Mayor Brian Obie (after 5:45 p.m.); Debra Ehrman, Freeman Holmer, Emily Schue, Ruth Bascom, Roger Rutan, Cynthia Wooten, Jeff Miller, councilors; Performing Arts Commission Chair Michael Fox; Jennifer King, Carol Williams, Richard Hansen, Henriette Heiny, Thomas Sciarretta, Laurie Smith, Gloryvette Cox, commissioners; City Manager Micheal Gleason; Assistant City Manager Dave Whitlow; Parks, Recreation and Cultural Services Director Ed Smith; Parks Director Ernie Drapela; Hult Center Director Bob Schutz; Neill Archer Roan, Pat Cusick, Hult Center staff; Public Informatin Director Barbara Bellamy; Cathy Freedman, City Manager's Office; Douglas Beauchamp, Lane Regional Arts Council. I. PERFORMING ARTS COMMISSION MISSION STATEMENT AND RELATED ACTIVITIES e Copies of a comparison, dated January 19, 1987, of the 1981-82 and 1985-86 seasons of local performing arts groups were distributed. Council Pres i dent Debra Ehrman opened the meeting, and i ntroduct ions were made. Ms. Ehrman announced that Mayor Obie recently had become a grandfather. Ms. King said the Performing Arts Commission was proposing to expand its duties and to reflect that new role by changing its title to the Cultural Affairs Commission. She noted that the commission had worked on residency status for local performing arts groups and that four applications for resident groups now were being reviewed. She also said the commission had recommended an increase in the commercial rental rate for the Hult Center, in order to provide a revenue source and to keep the center competitive. Ms. King reported that the commission's Marketing Committee was assisting Hult Center staff with marketing and community outreach efforts. She added that the Visual Arts Selection Committee, of which she was a member, had selected for the Jacobs Community Room exhibits to run through 1988. Ms. King introduced Mr. Roan, explaining that the commission had been impressed with the i nformat i on he presented and had suggested shari ng some of that information with the council. Mr. Roan described the programming process used at the Hult Center, from design of overall program configuration (including how many events of each type), contacts with agency and management, determining hall availability, investigating technical requirements, researching the event, making sales e MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 1 projections and a presentation to the staff booking committeet through negotiating contracts. He then reviewed each of those steps in more detail. ~ Mr, Roan said that in deciding how many events of each type were appropriate to presentt staff examined data about what the Eugene market would beart whether events fulfilled the mission of the Hult Centert revenue projections, time frames and halls, and scheduling of events by local arts organizations. Mr. Rutan asked about the geographic market of the Hult Center. Mr. Roan said the primary geographic market was the Eugene/Springfield area, and a secondary market extended from 50 to 150 miles away. In determining whether an event fulfilled the mission of the Hult Center, Mr. Roan said staff asked whether the event was likely to be presented elsewhere in Eugenet whether it developed Eugene's audience and broadened its cultural perspective, whether it was the highest quality obtainable of its type, and whether it would contribute to the marketing of Eugene as well as of the Hult Center. In determining whether an event was marketable, Mr. Roan said staff considered reputation, name recognitiont price and potential audience size. Ms. Ehrman asked whether the process Mr. Roan was describing was new or had been in place since the center opened. Mr. Roan said the process had evolved, adding that a Master Plan, which contained both old and new aspects, had been developed shortly after he was hired. Mr, Roan said an important programming factor was to avoid natural market ~ "slump" times, such as the first two weeks in January and during spring break. Mr. Roan described contacts wi th artists I agenci es or management, whi ch included obtaining information about fees, technical requirements, production expenses, and available dates and marketing kits. He said such information was especially important for certain types of events, such as next year's scheduled performance of "Circus Royale," which included top international circus performers and an 8,000-pound elephant, and which required extra floor support, trucks, preparations for aerial equipment, and so on. Mr, Roan said one of the major cha 11 enges faced by the Hult Center was the level of marketing assistance provided by major performing arts groups. He said probably 80 percent of touring attractions provided less than half the marketing materials (such as posters and public service announcements) needed to sell an event to the public. Mr. Roan said one area that had changed was an increase in event research, which included examination of quality reviews, box office receipts, product salest and reports from sponsors and presenters. He said the Hult Center staff was committed to providing high quality performances, but that was difficult because of a lack of availability of top name attractions. He added that the latest issue of Musical America listed that as the No.1 reason for six-figure deficits in six of the ten major American symphonies, and he said the same was true of rock, country, and other types of events. Mr. Roan also e MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 2 e noted that virtually all of the classical performers who were booked for future Hult Center performances were listed in Billboard magazine's Classical Top 20 albums. He said the Hult Center computer database allowed research of attractions by category, by artist, by night of the week, and by time of the year. For example, he said that during the past two years, an overwhelming percentage of performances had occurred on Friday nights, which was one of the preferred times for a "good sell. II Mr. Roan said the booking committee comprised Mr. Schutz, James Aday of the Cultural Arts Program, Hult Center Ticket Office Manager Marcia James-Gluz, Scheduling Coordinator Laura Niles, and himself. He said that committee's review included financial scenarios for breaking even and selling out at various ticket prices, and normally risks were considered unacceptable if an event required selling more than about 67 percent of the seats to break even. He added that higher percentages were considered acceptable for other events, such as musical theater, which historically did well in this market. Mr. Roan also noted that in manipulating ticket prices, the amount of revenue belonging to the promoter often did not change much. Mr. Roan said the booking committee presented an offer to the executive director, Mr. Schutz, and a decision then was made to proceed or decline. Final contract negotiation or, if necessary, a renegotiation was done, and engagements were put together. e Ms. Ehrman asked about the amount of promotion done by the Hult Center and by outside promoters. Mr. Roan said the number of commercial promoters for venues the size of the Hult Center was declining, both nationally and locally, and was expected to continue that trend. He said a larger venue also was not necessarily a sure sell, and he added that Hult Center staff was actively promoting the center to producers, of which many existed. Mr. Roan described the process of circulating contracts to check scheduling, terms, and technical requirements. He added that production costs for rock and country shows frequently ranged from $7,000 to $12,000, which was in addition to the artists' fees. Mr. Roan showed a program configuration for the classical series Musical Fortunes, which had an average break-even point of 67 percent and a net potential for sell-outs of $70,000. He added that the series included six shows, was one of five series, and was expected to result in a substantial increase in earned income. Mr. Roan presented a poster for the upcoming "Wonders Never Cease" campaign. He also distributed press proofs of brochures for the campaign. Mr. Holmer asked about scheduling priorities for resident arts groups. Mr. Roan said Mr. Smith this year had begun a master scheduling conference to set 1988-89 dates for resident companies and for the Hult Center. He said staff intended to plan dates two years in advance so that companies could more accurately and substantively plan their series. e MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 3 e e e Mr. Rutan asked about the recent successes or room for improvement in programming, as compared to other centers of this size. Mr. Roan said comparisons were difficult because most other venues the size of the Hult Center served metropolitan populations of 250,000, 500,000, or more. He added that he thought the balance and quality of programming had improved dramatically, which he attributed to a team management style that pooled staff knowledge and contributions. Mr. Roan said a ticket sales trend analysis on the computer had indicated a slight increase in sales from the time the center opened. He added that an upward trend was very difficult in this market. He said that performing arts centers normally experienced enormous activity in the first couple of years after opening, and their activity then dropped off before slowly climbing again. He said he thought the center was doing "extraordinarily well" for its market size, and he suggested that he provide more information in five or six months, after the series had begun. Mr. Roan said this year was the first time the Hult Center had a season campaign programmed, planned, and sold well in advance. He said previous seasons had been sold close to starting time, and data indicated that this market required substantial lead time to sell the dates. Mr. Rutan said he would look forward to hearing that, and he asked about the potential for growth in terms of tickets or performances, or both. Mr. Roan said he estimated a classical patron base of about 1,250 people. He said Carnegie Hall had only 2,800 seats, and the Hult Center's 2,SOO-seat hall was considered extremely large. He added, however, that the size also allowed a variety of pop, rock, and country events that would not be possible in a smaller hall. Mr. Roan said he expected that over the next three years, the culture patron base probably could be raised to between 1,800 and 2,000 people. He also said he expected the Broadway series consistently to sell between 2,000 and 2,250 seats, and he said known revenue-generating events were planned to cover potential losses in more risky events. He said he saw a tremendous growth potential, which he thought had resulted from a maturation of the five-year-old facility. He said he looked forward to "much better times." Mr. Roan said the current level of patronage for some events was at an unacceptable level, but he added that staff knew the reasons for that, had taken steps to mitigate it, and was very committed to what it saw as an incredible opportunity for growth. He said staff had implemented parts of a marketing study conducted earlier in the year. He also noted that although the program was market-driven in its necessity for revenue generation, it did not reflect "pandering," but continued to challenge, develop, and stimulate the Eugene audience. Ms. Cox noted that other forms of revenue generation also included broadcast rights and other avenues of growth. Mr. Roan said staff was examining new revenue streams, and he noted that the Bach Festival this summer would be broadcast to between 15 and 20 million people through Asian, American, and Canadian organizations. He said research indicated that arts consumers patronized arts through the media, so the broadcasts were important both to expand the audience and for economic development programs, He also said the quality of events, especially the Bach Festival, which was "absolutely, so much more extraordinary than people here know," presented real possibilities for revenue streams. MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 4 e e e Mr. Holmer praised the recent performances by Isaac Stern and Lazar Berman, and he asked whether those types of events posed adverse competition for resident companies. Mr. Roan said research had been done on the "co-patronage phenomenon" and showed that patrons, especially of classical events, were twice as likely to attend a first type of series if a second type of series in the same genre was offered annually. He said staff felt that top name events were creating an audience for local performers. He also said all of the hundreds of studies available indicated that discount and price had no effect on purchases in the culture patron group and that in some cases, discounted series did not sell as well as those that were not discounted. Mr. Hansen noted that opportunities for well-known performers sometimes were passed up in order to protect the scheduling for local arts groups. Mr. Roan said staff this year also had used some of the major events as premiums for local arts organizations, for example offering Isaac Stern tickets first to Bach Festival subscribers, and other tickets available first to Eugene Symphony and Eugene Opera subscri bers. He also said it was an extremely sensitive issue to schedule another event during a local arts event, and while some conflicts may have occurred, staff had a commitment to avoid adverse impacts, which was the reason for the master scheduling conference begun this year. Mr. Holmer expressed approval for that commitment. Ms. Bascom asked about information presented to the Budget Subcommittee that had indicated a national trend of ticket sales declining by 12 percent, which would have to be accounted for in the budget. Mr. Smith said a decline was expected and had been experienced during the Vancouver Expo. He said staff had attempted to adjust revenues according to the projected market. Ms. Ehrman asked what type of events were most likely to sellout. Mr. Roan said sell-outs occurred in a diverse range of events. Ms. Bascom read a list of sell-outs since the beginning of 1986, and Mr. Roan said half of those events had been promoted or co-promoted by the Hu1t Center. Mr. Gleason said he was excited about how well the Hu1t Center had done in stimulating arts productions of all types and in offering affordable events during a very difficult period. He commended teamwork by staff members. Ms. Wooten asked about the difference in the number of shows for the upcoming, past, and opening seasons. Mr. Smith said staff was attempting to program 35 outside productions this year, which he said was about the same as the opening season and compared to an average of about 29 shows in the intervening years. He also said all of the "Wonders Never Cease" seri es wou1 d be presented by the Hult Center. Mr. Fox noted that today's Register-Gourd had contained a letter to the editor about Hult Center ticket prices. He said he thought the rates were reasonable, and he asked staff to address that issue. Mr. Smith said discussions with local performers showed they felt rates were reasonable. He noted that the theater and stagehands union offered a 20 percent discount to local performing arts organizations and that those groups also received a 70 percent discount on the large hall, in addition to discounted advertising MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 5 e e e rates and co-promotes. He said he thought local arts groups were happy with the center, and he added that the scheduling conference had gone quite well. Mr. Smith said staff was attempting to keep ticket prices affordable at about $15. He also noted that the center was available not only for performing arts events, but also for live broadcasts such as the Hagler-Leonard fight. Responding to Ms. Wooten's question, Mr. Smith said the technical difficulties with that broadcast had not occurred at the Hult Center, but had originated with the satellite transmission. He also noted that the facility was available for parties and receptions, and that the SHO volunteer group recently had reported that 16,000 people had attended their free noon concerts. He said activities and uses had increased, although revenues had not. Mr. Roan said the average ticket price for sell-outs since the center opened had been $16.34, and he said the most expensive tickets usually outsold the inexpensive tickets by three or four to one. He added, however, that staff did try to maintain tickets at about $15, which was the cost of the best seats for the Broadway Series. A. Mission Statement Mr. Fox described the City Manager's recent consolidation of the Hult Center with the Parks and Recreation Department. He noted that the Parks and Recreation Department produced cultural events throughout the city and that an "excellent and dedicated" staff produced high-quality performances in an exciting venue and did fairly well given the nature of the market. He said he thought the consolidation allowed opportunities for more influence and coordination of the community's cultural direction and activities. He said the Performing Arts Commission had felt that it could serve as an advisory body for those functions of coordination and cooperation among the City's entire cultural and entertainment offerings, so that they could be planned in conjunction with resident companies and major users. He said the commission had modified its original mission statement to develop the current proposal. Ms. Cox said one concern of the commission had been the duplication of current efforts and the need for continuity and consolidation. Mr. Holmer asked whether the commission's expanded role would conflict with the Lane Regional Arts Council. Ms. Cox said a representative had been present at commission discussions. Mr. Fox said the commission was used to dealing with and resolving users' problems with the center. He said LRAC represented users, and he thought the groups could continue to work together. Mr. Holmer said he thought conflicts might occur in the functions of coordinating and scheduling, which he favored delegating to the commission. Mr. Fox said he saw the commission's role as dealing with use of City facilities and its agenda, and he said the group was willing to work with users like LRAC without difficulty. Ms. Ehrman noted that the commission recently had reduced its membership from 11 to nine members, and she asked whether the commission had discussed the need for more members if the role was expanded. Mr. Fox said that had not been discussed. He said he thought nine members were sufficient, and he said positions did not represent any particular interests. Ms. Heiny said she saw the expanded role as including functions of coordination, oversight, and problem resolution, rather than of actual scheduling. MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 6 e Ms. Wooten said she had been involved with the City's adopted Culture and Leisure Plan, and she asked whether discussion of the new mission statement and role had included consideration of that plan. She also asked about the commission's expanded role in terms of visual arts in the community and as they pertained to the I-percent art acquisition ordinance. Mr. Fox said the plan had been discussed, but the I-percent-for-art ordinance had not. He said the commission had not attempted to deal with every issue, but he thought those items would be raised and dealt with. Ms. Schue said the I-percent art acquisition ordinance was implemented through other means, although she added that the commission's comments might be useful. Ms. Schue also raised the issue of the relationship to the Joint Parks Committee, which included councilors, Planning Commissioners, and citizens, and oversaw parks issues. She said discussion might be needed on some issues, such as Cuthbert Amphitheatre, but she did not foresee any problems. Mr. Smith said coordination with LRAC would occur, adding that he did not expect conflict. He said the Culture and Leisure Plan and an LRAC action plan were expected to be addressed, and he said mechanisms to resolve such issues and to implement projects were being worked on. Ms. Bascom noted that she was the City Council representative to the Eugene Arts Foundation. She expressed support for comments that local arts groups were happy with the Hult Center. She added, however, that as the season comparison that had been distributed showed, local arts groups were barely surviving, despite the $161,000 that had been dispensed to them. e Ms. Bascom also suggested that the commission reconsider the part of its mi ssi on statement referri ng to "conti nui ng to market the City asan attractive destination." She said those functions and their relationships to the Convention and Visitor's Bureau and other entities were unclear, and she thought that should be discussed further. Ms. King said she had discussed the commission's expanded role in the visual arts, and she expected it to be involved in that area. Mr. Miller said he agreed with Ms. Bascom's comments that the relationship between destination point programs and the arts needed work. Ms. Ehrman asked about the role with regard to the Eugene Celebration Steering Committee. Mr. Fox said he thought the commission might be involved with the council in overseeing general program design for such events, but that issue had not been resolved. Mr. Rutan suggested rewording the last sentence of the first paragraph in the mission statement, that the Hult Center be the "best performing arts center of its kind in the United States." He said he thought it was inconsistent with preceding and following sentences. Mr. Fox said that meant that the center was intended to be the best center for its size and in the Northwest. Mr. Rutan also suggested changing the wording of the operating statement, that the Cultural Affairs Commission "shall initiate policy and planning. . ." He said the council and the City Manager, rather than commissions, typically e MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 7 e initiated policy. Ms. Schue said the council wanted the commission to "generate policy," and to "advise" the council. She said the council then would review the policy and give approval or suggest problems to be addressed. Mr. Fox said the word "initiate" had been felt to be within the purview of the ordinance establishing the commission. He said that meant that the commission could direct staff and initiate policy in areas in which the council was too busy. Ms. Schue said she saw problems with the word "policy," which the council preferred to be involved with. Mr. Rutan also suggested rewording the mission statement to give more emphasis to financial issues. He said the council needed assistance with those long- term issues and projected deficits, and he thought that assistance might include communication, solutions, and innovations for promoting arts organizations. e Mr. Holmer said he agreed with Mr. Rutan's comments about financial issues. He also said he perceived that the community had a perpetual problem in the proliferation of arts groups. He asked whether the expanded Cultural Affairs Commission was intended to deal with organizations outside the City organization, such as Very Little Theater, the University of Oregon, Maude Kerns Art Center, and the WOW Hall. He said he saw a need for a commission that would oversee the total arts community. Mr. Fox said that was not the intention. He said the commission had intended its mission to be determining the best use of City facilities and their interaction with user groups. He added that other cities had universal arts commissions that set policy and sometimes provided funds to artists, but the Eugene commission felt that was an inappropriate role that could lead to problems. He said he expected private arts groups to proliferate in Eugene, along with other enterprises. Mr. Hansen added that the commission's role was up to the City Council, but that commissioners had indicated a willingness to assume an expanded role in dealing with City facilities and activities as part of the consolidation of the Hult Center with the former Parks and Recreation Department. Ms. Cox added that in discussing the residency issue, it had become apparent that arts groups wanted autonomy along with general consideration in items such as scheduling and residency. Mayor Obie asked the council to provide further direction to the commission. Mr. Miller said he agreed with Mr. Rutan1s concerns about finances and he also was concerned about policy and destination point implications. Ms. Wooten said she was delighted with the willingness and the proposal of the Cultural Affairs Commission. She said she was concerned that the commission continue to obtain enough information to be effective and that it not take on too many issues to deal effectively with fiscal and programmatic items. She suggested that a work plan or session might be appropriate to address specifi cs and pri ori ties to be undertaken. She added that she strongly recommended the the commission review the Culture and Leisure Plan as a guideline and tool. Ms. Wooten said she agreed with the need for assistance with finances of the Hult Center and she wanted to be kept informed of the economic results of Hult Center productions, given the information e MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 8 e distributed tonight about a forecasted decline in ticket sales. She said she also was concerned about the the City's role in the visual arts community, beyond the I-percent requirement for art in public facilities. Ms. Wooten thanked the commission for its willingness to assume duties that might go II above and beyond the ca 11 . II Mr. Rutan said he expected the group to provide important assistance to the council and he hoped the commission would help to develop some new ideas. He thanked the commission and added that he looked forward to working together. Ms. Bascom expressed concern for the importance to the council of an effective relationship with local and resident performing arts groups. She said she presumed that commissioners knew how critical that support was and that it would continue. She also reiterated her suggestion that the commission work with the Eugene/Springfield Convention and Visitor's Bureau about roles in the destination point program. Ms. Schue said she was pleased that the commission had identified and volunteered for its new role. She said she agreed with the comments made by Mr. Rutan and Ms. Wooten, and she added that work was needed by someone with more time and background than the council. She said she expected that many areas would need to be worked out and negotiated, but she was pleased with the general direction. e Mr. Holmer suggested that it might be beneficial for two or three councilors to meet with the commission to address specifics in the mission statement. Ms. Wooten agreed, and she and Mr. Holmer volunteered for that meeting. Mr. Fox concurred, and he asked about the intent of the suggested IIreviewll of the Culture and Leisure Plan. Ms. Wooten said she thought the plan should be a living document and needed periodic updating. She said the plan had languished since development and approval and now needed implementation. She said the plan had been adopted by the community and should guide the commission in developing a more specific work plan and an expanded role. She added that in working on a mission statement and work plan, she would like the commission to collaborate with the Joint Parks Commission and to see if all of the activities being undertaken were reasonable in terms of that commission's past responsibilities. Ms. Ehrman said she thought the expanded role of the commission was a natural outgrowth of the department consolidation that had occurred. She said she saw the commission's role as one of advising the council and the department staff, and she did not envision it as encompassing private, non-City functions. She said she thought the wording of the mission statement needed some work, and she agreed that the commission should contact and work with the Convention and Visitor's Bureau and the destination point program to define roles and to avoid duplication of functions. Mayor Obie said he hoped the expansion would continue. He said he agreed that funding should be a major part of the commission's role, which needed to be coordinated with the Eugene Arts Foundation. He encouraged the commission to cont i nue work on a proposal that coul d be returned to the counci 1 for approval. He thanked commissioners for their willingness to undertake a role that was important for the community. - MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 9 Mr. Fox said the commission appreciated the opportunity to receive council assistance. ~ Mayor Obie recessed the meeting at 7:16 p.m. R7~ Micheal Gleason City Manager (Recorded by Leslie Scales) mnccj u08 e e MINUTES--Eugene City Council Dinner/Work Session June 8, 1987 Page 10