HomeMy WebLinkAbout02/05/1990 Special Meeting 402
SPECIAL COUNCIL MEETING
FEBRUARY 5, 1990
12:00 NOON - CAPITOL THEATRE - ROBERTSON ROOM
The City Council met in session on this date at 12:00 noon at the
Capitol Theatre. Council members present were Mayor Pat Berndt,
Clarence Barnett, George Pechtel, Skip Semon and Bernard Sims.
Council members Henry Beauchamp and Lynn Buchanan absent and
excused. Staff members present were City Manager Zais, Assistant
City Manager Stouder, Glenn Rice, Director of Community and
Economic Development, John Hanson, Director of Finance and Budget,
and City Clerk Roberts. Capitol Theatre staff member present was
Steve Caffery. Also present were Capitol Theatre Committee members
and members of the Long Range Planning Committee, Bob DiPietro, Jim
Smith, and Larry Wright.
The Council members were told that the Capitol Theatre is suffering
from a shortage of operating cash, most of which is due to
escalating program costs. The costs for staff and maintenance has
increased 160% over the last ten years and the support from the
City has remained relatively the same. Mr. DiPietro advised the
Council about the measures taken by the Committee to offset these
increases by requesting more community contributions, reducing
staff, cutting operating expenses wherever possible, raising the
rental fee, and raising the price of the tickets. The Capitol
Theatre has a support group to assist with fundraising activities
and operating the Theatre, "Back Stage ". They raised $110,000 in
1989 for operating purposes and 1100 of the 1500 seats are presold
for series events. In the past three years, one -time grants and
special grants brought in about $90,000. Ad sales were added in
the program, but with all of this, it is not enough. Mr. DiPietro
said they can't raise the ticket prices fast enough or raise the
rents high enough to impact the cash flow problem without the price
turning people away. He stated they cut the costs, which meant
cutting programming, particulary single events which are advanced
from the ground up and don't usually make money, so that is what
gets cut first. In 1987 the Capitol Theatre Corporation put on 15
events on the stage, and this year only six will be put on, five of
which are series events. He said the Committee feels that the
original meaning of the Theatre has now been compromised, which is
why Council is being asked for help. Council member Barnett
suggested a lower amount be requested in their fund drive, stating
that $150 may be too high for some contributors. Mr. DiPietro
responded to this suggestion, stating the Committee had considered
that, but determined that people would have a tendency to mark the
lowest amount on the contribution form, decreasing the total amount
of contributions. Larry Wright reviewed the material presented to
Council earlier. Addendum One compares financial information from
the Hult Centre, Washington Center and Pantages Theater against the
Capitol Theatre over the last ten years. He stated that the
Capitol Theatre receives about 7% of operating revenues from
government support.. Steve Caffery reviewed Addendum Four regarding
expenses, and told about the cost reduction efforts made, reducing
and eliminating staff, and no salary increases for past two years.
Assistant City Manager Stouder asked about the total event days for
the Theatre. Mr. Caffery stated it is about 100 days per year.
Discussion ensued regarding the programming of single events and
the possible impact caused by the SunDome. Mr. Caffery stated he
does not believe the SunDome will impact the Capitol Theatre unless
a country western group is performing at each facility on the same
night. Mr. Smith stated the only revenue sources for the Capitol
Theatre are to sell tickets, rent the building, rent concessions,
print programs, and the City giving its support. The bottom line
is that a lot of money is lost just being a presenting theater.
He stated the one -time grants and gifts average about $29,000 a
year, deducted from the average $44,000 operating loss, it leaves
an $15,000 average annual deficit. It is projected to be $34,000
"in the hole" by June of this year. Mr. Smith stated that what
they are asking for is to help get rid of the deficit and get
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• SPECIAL COUNCIL MEETING - FEBRUARY 5, 1990
$50,000 per year,_ which is about their, annual loss. He stated they
would also like the City's annual contribution to be adjusted each
year by the cost of living percentage. Mr. Hanson stated that the
City gives The Capitol Theatre about $44,000 in roam tax because
some of the insurance costs is covered by the City, so they are
asking for $94,000 in room tax, plus, they are looking at the City
• picking up that debt. Council member Semon asked if the Committe
members feel it is appropriate to go to the County and ask for
further support because the people who attend spend money in the
community the evenings of the events. Mr. Smith responded that the
Committee approached the City because the City awns the building.
He further stated he doesn't know what their legal status would be
in going to the County. There was a brief mentioning of the
possibility of a County -wide admission tax which would benefit all
the facilities. (Council member Pechtel absent after 1:45 P.M.)
Council member Barnett stated he is concerned about the uncertainty
of receiving future room tax funds. (Council member Barnett absent
after 1:50 P.M.) There was furter discussion about the costs and
risks involved in Capitol Theatre sponsored single events. Council
member Semon commented that he thinks the Capitol Theatre is a very
important part of this community, but the City is in the same
situation; lack of sufficient funds to do what is needed. Mr.
Rice stated staff prepared a report outlining options to consider,
including a City admission tax. Council member Semon suggested the
Committee look at using volunteers in the box office and as ushers.
Mayor Berndt thanked the Committee members for the report and the
lunch. She stated' the City wants to keep the Capitol Theatre
viable in Yakima. She said Council can't make any guarantees about
what will happen, but we want it to happen.
The meeting adjourned at the hour of 2:10 • .
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CITY CLERK MAYOR
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