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HomeMy WebLinkAbout03/14/1983 Meeting M I NUT E S e Eugene City Council Dinner Work Session Joint Meeting With Representatives of Major Performing Arts Organizations Hansberry and Ferber Room--Eugene Community Conference Center March 14, 1983 5 p.m. PRESENT: Mayor Gus Keller, Freeman Holmer, Emily Schue, Mark Lindberg, Brian Obie, John Ball, Cynthi a Wooten, Betty Smith, City Councilors; Jim Toland, Arts Management Services Incorporated; Jerry McDonnell, Eugene Ballet and Eugene Opera; Laurie Smith, Eugene Opera; Janice Johnston, Jim Reeves, Bill McGlaughlin, Bruce Chase, Eugene Symphony; Philip Miller, Mary Beth Gale, Sharon Posner, Steve Caffery, Oregon Repertory Theater; Michea1 Gleason, City Manager; Dave Whitlow, Assistant City Manager; Benson Snyder, Gary Williams, Eugene Arts Foundation; Dick Reynolds, Les Anderson, Hult Center for the Performing Arts; Cathy Briner, Business Assistance Team; Barb Bellamy, Public Information Officer; Pat Lynch, Council Administrator; Kent Anderson; members of the press. 1. ARTS MANAGEMENT SERVICES, INC., PRESENTATION (i ssue paper and packet distributed) e Mr. Toland noted that the Arts Management Services, Inc., was fOrmed in 1981 to allow the Eugene Opera, the Eugene Ballet, and the Eugene Symphony to collaborate and to more effectively use resources. He said AMSI is represented by a board of directors which includes a secretary or treasurer, president, and general manager of each of the three constituent groups. II. ORIENTATION TO EACH ORGANIZATION A. Eugene Ballet: Jerry McDonnell, President Mr. McDonnell said it was realized several years ago that the ballet would not be abl e to survive the opening of the Hu1 t Center for the Performing Arts if the ballet continued on an amateur status. Therefore in 1981 a board of directors formed to gi ve governance to Eugene Ball et Company. Mr. McDonnell added that si nee then the ball et has grown exponenti ally. He noted that several maj or pieces have been produced which have received excellent acclaim. The ballet company serves a constituent audience that includes Lane County and touring performances have been extended to Cannon Beach, Albany, and Roseburg. The ballet company is the only classical ballet organization in the state. Mr. McDonnell said the ballet company is projecting a budget at the limits of capabilities for the upcoming year but are optimistic that the audiences which have been developed will continue to be received. - MINUTES--Eugene City Council March 14, 1983 P ag e 1 e - e B. Eugene Opera: Laurie Smith, President Ms. Smith said the Eugene Opera is a new company of which there are two in Oregon. The Eugene Opera moved into the HCPA this year in the sixth year of production. Ms. Smith said performances are of high professional quality even under trying budget conditions. She stressed the Eugene Opera is a local professional organization with the board of directors from Lane County. She said the Eugene Opera is gaining a national reputation and is a growing, thriving company. She stressed that if the Eugene Opera Company does not survive in the HCPA the only opera Eugene will see will be opera that comes to town, sells tickets, and the money leaves town with the touring company. C. Eugene Symphony: Janet Johnston, President Ms. Johnston stated the Eugene Symphony Board of Directors is proud of the achi evements thi s season. The Eugene Symphony set out three years ago tD buil d a quality symphony orchestra that was worthy of performing in the HCPA. She said that has been achieved. The budget in 1978-79 was $88,000. This year the budget proposed is $607,000. In 1978-79, 920 season tickets were sold. This year 22,000 season tickets were sold. Ms. Johnston said these figures represent phenomenal growth. She said the board of directors was responsible for the leap of faith it took to achieve that growth. The bottom line of the budget is that there is not enough supplementary money to sustain the quality of orchestra that has been produced. Ms. Johnston said the 1983-84 season will be a reduced season. The board of directors will be asked for an extra $25,000 to fi ni sh thi s season. Ms. Johnston said the question is whether the qual ity of the programs offered this year can be sustained. C. Oregon Repertory Theater: Philip Miller, President Mr. Miller said ORT was established by three University of Oregon graduate students under the assumption it would be professional in two years. He said the theater's home was established in 1976 and it had built a solid organization into a comfortable 100-seat theater. Mr. Miller E!I1phasized that growth and becoming fully professional is the focus and the management structure has been reorganized with a managing director instead of a producing director. ORT has outgrown a 212-seat theater and into a 500-seat theater. Mr. ~\i1l er observed that becoming a stable organization is a four- or five-year job. No profes- sional group will achieve stability unless they are a community project. III. PERFORMING ARTS ORGANIZATIONS NEEDS Mr. Toland observed the four organizations have a continuing thread. One is the pride in their jobs, a recogni ti on that it is not done for themsel ves or alone. The four groups share fear and anxi ety. They recogni ze that they represent a potent force in the community, espeCially economically. Mr. Toland said they also recognize if there is to be a cultural legacy in the future, it is up to them and they must work together. He noted a closer collaborative effort in the past two years on the part of performing arts organizations which call themselves professional and which seek to establish residency in the HCPA. Those companies MINUTES--Eugene City Council March 14, 1983 Page 2 . live in this community. Mr. Toland said AMSI recognizes that partnerships must be developed within the four performing arts groups, with colleagues in the vi sual arts, wi th educati ona1 and avocati onal arts, and in partnershi ps beyond art consideration which affect the tourist industry. AMSI is seeking a part- nership with City Council to better serve the needs of the community. Mr. Reeves indicated the position paper represents needs as the board sees them. He said money is the biggest need and emphasized that the needs of the AMSI companies are not separated from the needs of the City and the HCPA. Mr. Reeves stressed that the AMSI companies need the recognition that they are primary components of a successful HCPA. Over the next three to fi ve years, the goal s of the HCPA and AMSI are the same needs to become stablized in the center. An audience base (by subscription, not single tickets) must be established. Mr. Reeves said AMSI companies must become stablized in the HCPA financially. It is necessary for all to do these things if the HCPA is to be characterized as a successful enterprise. Mr. Reeves indicated that when discussing money, the two resources of people and time must be included. All the objectives will not be met immediately and the resources of the City and the companies will not allow accomplishment of everything that everyone wanted in the HCPA. Therefore, he said, resources must be prioritized. A performing arts center has been con- structed which is not a visual arts museum or sculpture garden. Mr. Reeves feels that, given limited resources, those resources should primarily be invested in the performing arts organizations over the next few years. Mr. Toland said the position paper lists several recommendations. He said an explosive rate of growth for these organizations is shown in the packet. Money is an important issue in itself and cannot be completely discussed at this meeting. ~ Mr. Toland said there are two specific requests. The first requests that a task force be appointed from individuals, a City Council representative, City staff, AMSI, and di fferent groups who are affected by the pol icy issues. The task force would study considerations and arrive at a consensus by June 1983. Mr. Toland said the second request is that an arts office be staffed by City government. A person to approach on a regular basis is needed to deal with issues in the arts. Mr. Toland said a fragmented approach must be eliminated. Mr. Toland emphasized the cultural component of the economic diversification plan is needed. He urged that it be completed by April but requested that those groups of individuals to be directly affected by the cultural plan be involved in the process of its development. He stressed AMSI is not advocating acceptance or rejection of the issue but wants the opportunity to discuss them in a task force fo rm . e IV. DISCUSSION Ms. B. Smith asked if performing arts groups had discussed whether rapid growth can be afforded. Mr. Toland replied there had been much discussion among the MINUTES--Eugene City Council March 14, 1983 Page 3 - e e arts groups about the rate of growth. He said growth must level off in the next 24 months but at a higher level than before. He observed that the haste was based on the notion that AMSI groups should perform as resident companies in the HCPA, whi 1 e recogni zi ng that takes a 1 eap forward in budget pl anning, fundraising, and artistic development. Ms. Johnston said when the Eugene Symphony planned to get into the HCPA at a qual i ty 1 evel , the goal was that the next few years be years of stabi 1 i zation. She said the question now is whether this season can be finished. The symphony is already projected to cut back next year. Ms. Johnston stated that what the community can afford is the question. It is now known what it costs to perform in the HCPA. Ms. L. Smith said that for the opera one of the problems was no choice but to move into the HCPA because opera would not have been attended otherwise. She said the cost for the first season or two will be higher than later. She noted that the opera cannot cut back on the musici ans' sa1 ary but the scope of the season can be cut. Mr. Hansen noted that one problem is that expenses are higher. He asked if there are built-in charges that could be reduced. Mr. Toland replied the opera and ballet recently met in the HCPA with Mr. Reynolds, Mr. Pelletier, and Mr. Dustrud to find ways to reduce costs there. The more productions, the more cost will be reduced because of familiarity with the facility. It is costing $10,000 per production this season. However, as time goes on, efficiencies will reduce the cost. Mr. McDonnell, responding to Ms. B. Smith's CfJestion, said all arts groups are hoping to stabilize. The performing arts groups are an asset to the community and are inclined to remain in Eugene to present to Lane County audiences the best this area has to offer. To survive, they must play to the audience's expectations in the HCPA and that is a quantum leap. Costs have been extraordinary. He said a 35-percent growth rate is anticipated now. Responding to a question, Mr. Reeves said conflicts in scheduling have been eliminated. Mr. Toland added that those problems were a reflection of start-up of a new facility. Mr. Reeves also said a second phone line would be helpful. Mr. Miller said that the City government's priorities and how those are reflected to staff in terms of decision-making are important. For example, he asked if Mr. Reynolds' job is to operate the HCPA at a profit or to keep local people involved. Responding to a question, Mr. Snyder indicated the Eugene Arts Foundation hopes to function in advance of the new fiscal year so grants can be built into perform- ing arts companies' budgets. He said meetings have been held two or three times a week for analyzing the cash flow picture. Mr. Snyder said $3.5 million of the $5.5 million goal has been raised in commitments. Of that $3.5, $2 million have been received in cash. Also, commitments totaling $4.7 have been received. Mr. Snyder said endowments are not now funded but will be funded over the next few years. He said EAF is within $2,000 of completing the capital commitment to the MINUTES--Eugene City Council March 14, 1983 Page 4 e City. He said he desires to get those grants out as soon as possible. Mr. Snyder stated that as endowments are funded, $1.5 million is dedicated to performing arts organizations. When the $2.5 million endowment is funded, the HCPA will receive funds. Mr. Snyder said he did not know when the 1982-83 fundi ng woul d occur but expects it to occur before the end of the fi sca1 year. Ms. Wooten stressed that the arts groups need a clear understanding of committed revenue. Mr. Snyder said the EAF portion will not be the total answer to operating needs. He estimated that several organizations will run an operating deficit this year. The EAF's ability to commit in a timely fashion is dependent on funds being received. Some EAF commitments stretch up to seven years. Responding to a question, Mr. Reeves said the Eugene Symphony Orchestra musicians are all paid and work under a three-year master agreement which is negotiated. That agreement specifies the working environment and sets a minimum rate per service which is a rehearsal or a concert. Mr. Reeves said the rate is $25.00 per service. The Oregon Symphony Musicians of Portland are paid $60.00 per service. Mr. McGlaughlin added that the biggest art patrons of Eugene are the performers who work for 10 percent of their worth. Mr. McDonnell said ball et performers may make $2,000 per season for 12 perfor- mances, plus numerous rehearsals. e Mr. Miller said $50.00 a week for 50 hours of work was the average wage last year for ORT performers. An equity contract is being worked toward, but it is a five-year process. Mr. Obie said the City Council needs input on who the arts community is. Mr. Toland responded that some companies consider themselves professional. He said others are characterized as avocational or recreational and there are also individual artists. He said a task force can help identify what the arts constituency is. Mr. Miller said membership must be paid to the Eugene-Springfield Visitors and Convention Bureau to get arts referrals to potential clients. Mr. Holmer asked about the stability of artistic years. Mr. McGlaughlin replied that he is here. continues to support the arts, he wants to stay. Symphony is not a quality orchestra in the HCPA, 1 eadershi p over the next few If the Eugene community But he said if the Eugene he said he cannot stay. Ms. Wooten reported that members of the City Council Economic Development Subcommittee had spent many hours discussing the City's role in cultural and destination point activities and how to plan for public expenditures. She said the members had agreed they would like to invite arts groups to a two- or three-hour session to try to determine some community policies on cultural and destination point activities. Ms. Wooten said from that a task force could develop to proceed with cultural plan capabilities and to look at appropriations and the goal of the City of Eugene. e MINUTES--Eugene City Council March 14, 1983 P ag e 5 . e e Mr. To1 and repl i ed that all arts groups woul d say bravo to that but are eager to get on wi th it. Ms. Johnston said that process may take too long. She said short-term decisions must be made on how the HCPA and the EAF and the arts groups wi 11 integrate their programs and decision-making to let this industry survive for the next two years. Mr. Toland added that if after a year, a cultural plan is left but no viable performing arts organizations are left, a problem is posed. He urged immediate discussion of long-term stability. ~ls. Schue observed that the problem is that the community has a wonderful dream but no money with which to do what had been hoped. She said it is necessary to be realistic about what arts groups want from the City. She said the City does not have money either. Mr. Toland appreciated Ms. Schue's candor and said he would like to give an answer but does not have one either. He asked her what the City expects from the arts groups. He said there must be a system of reciprocity. Mr. Toland said the rate of growth cannot go on and asked what the community wanted. Ms. Schue replied the City wants the arts groups to be there. Mr. Toland said the City should give advice, guidance, and in turn, arts groups want to work with the City in developing a cultural plan. He asked how the arts are made a matter of public policy. That answer can only be found together. Ms. L. Smith encouraged City Council to consider that Ashland has proved coor- dination between the city government and the cultural community is beneficial. She stated that an industry 1 ooki ng at a pl ace to locate woul d prefer a community that supports art and culture rather than a community that brings touring groups in at the whim of a promoter. Ms. Smith said what the City gives to arts groups is an investment because the money comes back in tourist dollars and community dollars from the reputation the community develops. Mr. Chase stressed that di al ogue is important and the time frame is critical. He is not concerned about maintaining the level of professionalism achieved if a mandate to cornerstone the HCPA exists. The decision to maintain a professional level must be made now. Mr. Chase emphasized that fiscal responsibility must be demonstrated. The core of performers who live here is a good investment. Mr. Anderson stated that all people attending this meeting have a hand in the dilemma. All must work on it together. All groups were helpful in getting the HCPA established. He said he does not foresee that a cultural plan will answer the problem. What must be done is to get a representative of the core here and determine how the problem will be worked out. Mr. Anderson said a task force is not needed, nor is a cultural plan. What is needed is this group attending this meeti ng. Financing operati on of the HCPA and operati ng the performi ng arts groups will take real commitment and bartering and tugging. MINUTES--Eugene City Council March 14, 1983 Page 6 e e - Mr. Obie commented that the cultural and destination point activity plan is too far away to solve the immediate problem. However, he said the short-term problem fits at the front of a cultural and destination point activity plan. He said to recreate later the effort that is now under way will be difficult, if not impossible. The solution wi" come easier than if support of the performing arts center and associated activities must be determined in five years. He would like City Council to get involved in the effort that is representative of the players involved. He suggested working through a process to work on a short-range plan. Mr. Ball asked if Mr. Toland would be present at the Room Tax discussion. Mr. Toland said he would defer to the Board of Directors and Presidents and seek guidance from them. He said tourism is important to the community and would increase the amount of money available to those in a \X>sition to take advantage of it. Ms. Johnston said the Eugene-Springfi el d Convention and Vi si tors Bureau wi 11 influence how the tourism and arts industry grows. It is to the arts groups advantage that the ESVCB do a good job. One percent of room tax to fix the arts groups would not be the answer. She said the first question of "what do we want?" has not been answered. After that is determi ned, a method can be chosen and use of the room tax can be considered. Ms. L. Smith indicated the City can increase support of the performing arts groups by examining the room tax percentages before reallocating them. Mr. Anderson said the community wants the quality of performances it has now and wants more of the same to continue. He is disturbed that the room tax is a drop in the bucket. He said a comprehensive financial plan for the HCPA and local perfonning organizations is needed. If City Council gives certain people the mission to develop a comprehensive, short-range financial plan, progress can be made. Mr. Gl eason said the fact that arts groups are sitting in one room di scussing the issue with mutual respect demonstrates that a solution can be found. He pointed out this is clearly unique. He said the task force approach can be used to develop underpinnings with financing coming first and a cultural plan being developed 1 ater. Mr. Snyder observed that four AMSI-related organizations plus the Bach Festival have a 1982-83 budget of one-quarter million dollars which is an unearned income need of $650,000. Of that, $300,000 to $350,000 is contributed now. Part of the need is not money only, but is some kinds of services. Mr. Snyder said those five organizations with a growth rate of 20 percent need another $100,000. A $2 million total needed next year is not outside the realm of possibilities. Within the total system, that money exists. But the need is for services that cost the organization money. Mr. Snyder added that if the HCPA rents are reduced, deficits decrease. He said some types of services not being perfonned now are administration and support systems to enhance marketing and fund-raising efforts. He said the EAF is 1 ooki ng at a $250,000 fundi ng level now. That needs to be front-loaded for the next few transitorial years. But, he said, that may not be feasible. Mr. Snyder said the Mayor, City Council, Civic Center MINUTES--Eugene City Council March 14, 1983 Page 7 e e - Committee, and the Eugene Arts Foundation have a strong commitment not to use General Revenue funds for operati ng the HCPA. He sai d he di d not know if any commitment has been considered for the 1983-84 budget for line items for arts in the community. That is done in many communities he said. In the private sector, $300,000 is being raised by those five arts organizations. He said a cu1 tural and desti nation point activi ty p1 an will not have the ul timate answer to what the community wants. He added the boards and staff must shape the unique opportunity to have the Eugene Symphony different from any other and to find out the pattern that is sustainable here for the Eugene Opera or Ballet or Symphony. No committee can develop a master plan. Mr. McDonnell applauded Mr. Snyder as a key person in the city and said Mr. Snyder is due credit for the arts organizations' progress. Mr. McDonnell asked City Council to consider those issues presented in the position paper. He underscored that arts organizations are an advocate and want to work with City Council. He said the four groups have chosen to form a corporation of convenience so that they do speak for many and they wish to let City Council have as much of that information as possible and to participate in the cultural p1 an. Mr. Williams pointed out that a new program called the liNEA Test Program for Local Support" has begun. The guide1 ines focus on promoting increased funding at the state and local level. It focuses on partnerships between private and public sectors on the local level to maintain an arts program. Summarizing, Mr. Keller said he looks forward to having arts groups work with City Council. He said the City staff and other people who are vitally concerned about the arts have already discussed some of the problems presented at this meeting. He emphasized that this City Council and prior City Councils have advocated a strong arts community and willingness to support it. Mr. Keller added that this community is made up of dreamers who will deal with issues as they surface. No one knew the size of the deficit that would be incurred in a performing arts center. Mr. Kell er agreed that the issues are important enough to di scuss but that there are not enough hours to take care of the immediate needs that each arts organization feels City Council should deal with. He said the key is the will ingness for all to work hard on thi s joint venture. If one group decides they are abused and that becomes the issue, failure will result. Mr. Keller said City Council will work with arts groups and together will find ways to make it easier to be more successful in the future. He said the meeting has been beneficial to all. T~~' (Recorded by L01S Enman) LE:cj/CM26b1 MINUTES--Eugene City Council March 14, 1983 Page 8