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HomeMy WebLinkAboutagenda.council.worksession.20120228 DATE: 16 FEBRUARY 2012 TO: MAYOR IRELAND AND ASPEN CITY COUNCIL THROUGH: ASSISTANT CITY MANAGER RANDY READY FROM: WHEELER EXECUTIVE DIRECTOR GRAM SLATON RE: WHEELER OPERA HOUSE PROGRAMS AND SUBSIDY INFORMATION — EXECUTIVE SUMMARY AND PROGRAM UPDATE MEETING DATE: FEBRUARY 28, 2012 SUMMARY The purpose of this document is to supplement the December 16, 2011, report to Council with updates on programs, as well as to give thumbnail summaries of the Wheeler's individual programs and key points for Council discussion and direction. OVERVIEW As detailed in the December 16 report, there are twelve programs managed by the Wheeler: • Wheeler Programming (single and festival events) * • Community Events * • Wheeler Film Society A • General Rentals A • Aspen Music Festival Rentals # • Aspen Show Tickets A • Concessions * • Public Amenity # • Historic Property # • Outreach and Liaison A • Leases # • Arts Grants # Those programs marked with an asterisk ( *) Wheeler staff considers to be within its direct control, given guidance by City Council, to execute. Those programs marked with a carat (A) Wheeler staff considers to be more a community resource in fit and implementation. Those programs marked with a pound sign ( #) are programs that either exist due to Council direction, pre- existing contract, or as a City of Aspen asset, and without Wheeler control to independently amend or otherwise creatively manage. 1 WHAT'S HEADING IN THE RIGHT DIRECTION? Wheeler board and staff feel that the following programs have served a unique purpose and performed well, and would not recommend any significant change for them: • Community Events • Public Amenity • Historic Property • Outreach and Liaison Wheeler board and staff feel that the following programs, some of which have been adversely impacted by the recession and are now seeing marked improvement, also serve a unique purpose, have performed well given past Council direction, and should be the focus of discussion with Council at this time for better clarity and future direction: • Wheeler Programming • General Rentals • Aspen Show Tickets • Concessions WHAT'S OF CONCERN REGARDING FINANCIAL IMPACT AND FUTURE CONSIDERATION? Wheeler board and staff recognize distinct challenges with the following programs, as regards financial efficiency, deployment of Wheeler resources, and ability to continue in their present direction: • Wheeler Film Society • Arts Grants DISCUSSION Community Events are the events at the Wheeler that are free and open to the public. They are popular programs featured throughout the September —June year and allow the Wheeler to fulfill its role as a public meeting place and community resource for educational, organizational, charitable, and celebratory events. Some of these include the Aspen Center for Physics lectures, Food & Wine volunteer orientation meetings, fundraisers for community groups, and free Winterskol shows. Public Amenity refers to the Wheeler as a community information and access resource in downtown Aspen, and includes providing public restrooms, providing artists with gallery space on the second floor; a satellite ACRA information station, a meeting and waiting area out of weather, and more. Historic Property refers to the Wheeler as one of Aspen's most - noteworthy historic structures that is also a functioning building, in our case a state -of- the -art theatrical space that receives constant use for local and national attractions. Both the outside and the inside of the historic structure must be vigilantly maintained in order to keep the building in top form, including everything from exterior paint and repointing to interior drapes and woodwork. Outreach and Liaison refers to the Wheeler as the City of Aspen's de facto arts resource for many members of the community, in a consulting and advisory role. This program also encompasses the 2 Wheelers role in fulfilling directives and initiatives for City Council, the City of Aspen, and the Wheeler's Board of Directors. With all four of these programs, the Wheeler at present does not receive revenue or financial reimbursement; however, Wheeler staff and board feel strongly that all four programs fulfill a unique and important role in maintaining and growing Aspen's arts and community vibrancy and should be continued without significant change, other than the regular monitoring and adjustments expected from responsible staff management. Wheeler Programming encompasses events where the Wheeler takes on all or part of the financial risk for the event, which is offset in most instances solely through ticket sales. Council's direction to staff in 2005 was to present significantly more live events, whether through sole bookings or in partnership with other arts organizations as co- promotions. Council also directed staff to consider high - profile bookings for important periods in the winter season, such as the Christmas -to- New - Year's week, President's Weekend, and during spring break weeks. As festival opportunities presented themselves, Council was supportive of the Wheeler producing such events, particularly the 7908 Aspen Songwriters Festival, which grew out of the "Mining For Ideas" challenge in 2010. Also, during the recession, the Wheeler was called on to step up its booking profile in order to keep Aspen competitive in attracting winter - season guests. The December 16 report discusses how the financial results for Wheeler Programming were strained by the recession, from its earliest impact in late 2007 to midway through the 2011 year; however, the second half of 2011 has indicated that patrons are responding to the kind of rich and varied programming that the Wheeler has developed since 2005, especially for its MountainSummit and 7908 festivals. Wheeler staff and board feel strongly that the event mix that the Wheeler provides through its Wheeler Programming, including its three festivals, distinguishes Aspen from almost all other winter destination resorts and should be maintained. Input from Council is requested regarding the future direction it should pursue for its festivals, as well as what level of subsidy is appropriate for high - profile performances with accessible ticket pricing that require a loss in order to occur in Aspen during high - profile times of year. General (Theatre) Rentals is the program of the Wheeler that allows outside entities to present events, supported by a range of fees and service reimbursements paid by those entities, and with the Wheeler at no financial risk for the outcome of the event. The Wheeler, as a small venue, doesn't have the volume or scale to command higher rental rates, and the direction Wheeler staff has pursued since 2005 has been to have its rental program first and foremost be supportive of arts groups and presenters, and not an economic driver for the Wheeler. The impact of the recession on the Wheeler's user groups has regularly required a relaxation of rental terms in order to help ensure that the user group can continue to provide programming. As with the Wheeler's programs, Rentals have seen a steady increase in attendance and positive results since the second half of 2011 and the Wheeler can expect to better collect 100% of its rental terms with users in 2012 and going forward. Still, the Wheeler needs to be price sensitive relative to the ability of its user groups and selective about new fees or price increases. Wheeler staff and board feel that the General Rentals program provides Aspen and Roaring Fork Valley arts groups and other not - for - profits with a value- oriented presenting option that is attractively 3 priced and enables groups to present without undue financial risk. Input from Council is requested regarding the future direction of rental rates relative to the subsidy required to support the program. Aspen Show Tickets is the program that serves as a community box office for many venues and events in the upper valley, with a larger sales volume for events outside of the Wheeler than for those that occur at the venue. Wheeler expenses are partially offset through a number of cost - recovery lines, but the intensive hands -on nature of the box office business means that the entirety of the program requires subsidy. As with the rental program, there has been some relaxation of the terms for user groups through the recession that now are fading away, and some price increases and new fees introduced in 2011 will better help get the program to a zero subsidy; however, Council should be aware that this program is a primary feeder of funds for the Arts Grants program and these monies do not accrue to the Wheeler to support general operations. Steps have been taken to reduce operating expense by the elimination of two FTE Wheeler positions (one that was solely assigned to the Aspen Show Tickets program, and one that was in the Front Of House department) and replaced it with a new position that will split time between Aspen Show Tickets and Front Of House. The positive financial impact of this change will not be measurable financially until late 2013, but is expected to reduce box office overhead by 10% or more. Wheeler staff and board feel that the Aspen Show Tickets program provides Aspen and Roaring Fork Valley arts groups and other not - for - profits with a value- oriented ticket services option that is attractively priced and enables groups to present without undue financial risk. Input from Council is requested regarding the future direction of box office rates relative to the subsidy required to support the program, as well as whether some funds should be retained from this program to help offset other Wheeler operating costs (discussed more fully under "Arts Grants. ") Concessions is the program that represents all bar sales and the small amount of revenue captured by artist merchandise royalties. Past direction from Council has been to offer an affordable drinking option for Wheeler patrons, even to be considered as "the cheapest bar in town." As such it is extremely successful, but the high operating costs of set -up and tear -down for a very short- duration window of sales means that the program has required an operating subsidy. Wheeler staff and board would be supportive of higher prices for bar items, in conjunction with a continued effort to improve operating efficiencies, including credit card processing, staffing levels, and any other measures that make good operational sense to help this program financially. Wheeler Film Society represents the service- contract program between Jon Busch and Don Swales and the Wheeler Opera House to supply film product to fill empty dates in the Wheeler calendar. This relationship has existed since about 1990 without significant change. In that time, the advancement of alternative media sources such as cable TV, movie - rental businesses such as Blockbuster and Netflix, and on- demand internet streaming have reduced the audience for movie - screening attendance. Average numbers for WFS bookings have declined to an average of about 47 patrons per screening, although WFS saw a strong increase in January 2012 after being off the Wheeler calendar due to construction through the second half of 2011. Still, at over $15 per attendee, the cost per patron to subsidize this 4 program brings its continued viability into question, particularly as the Wheeler has in 2012 begun an active association with Aspen Film to self - promote film in some of its non -live booking slots with good attendance and cost - control success. WFS is in the middle year of its three -year contract with the Wheeler, with each year subject to renewal in June. The contract itself is subject to approval by City Council at the start of its three -year term. In light of the pursuit of reasonable subsidies for Wheeler programs, Wheeler staff and board question whether continuance of the Wheeler Film Society's contract should extend beyond its 2012 commitment, and believe that self- or shared - promoting of film content or even dark nights may prove more economically efficient and a better use of available Wheeler resources. Arts Grants is the program whereby the Wheeler supports 100% of the City of Aspen's grants to arts not - for- profits. This program was shifted 100% to the Wheeler from the City of Aspen's general fund in 1999 by City Council and effectively takes all available revenues collected from the General Rentals, Aspen Show Tickets, Concessions, and Leases programs to create a pool of funds that, in combination with the $100,000 legally permissible under the Real Estate Transfer Tax enabling legislation, funds up to $400,000 in annual grants to support operations of not - for - profit arts groups extending from Aspen to Glenwood Springs. Because this program absorbs so many revenue sources away from supporting operations of the Wheeler, the bottom -line subsidy for the Wheeler is worse than it otherwise would be by $250,000 - $300,000 annually. Over $2.8 million of Wheeler operating revenues have gone to arts grants between 1999 and 2010, in addition to the $1.2 million funded by the 5100,000 annual amount from the RETT through those twelve years. Wheeler staff and board believe that in 1999, there may have been less concern by City Council about Wheeler operating subsidies than there is currently, and that in Tight of recent direction from Council to fully assess and report operating subsidies the considerable impact of the Arts Grants program should be discussed. Two programs were not noted with bullet points and are touched on here: Leases indicates the program overseen by City Asset Management for the rental and revenue collection from the two commercial spaces at the Wheeler. 100% of the rental income from these spaces goes to support the City of Aspen's grants for arts not - for - profits. In light of both spaces recently becoming fully remodeled and new leases operational as of December 2011, Wheeler staff and board feel that there is no discussion or action required at this time for this program. Aspen Music Festival Rentals is a program of the Wheeler that continues the contractual relationship between the Aspen Music Festival and School (AMFS) and the Wheeler that was created for implementation in 1984 for a period of fifty years. Its terms remain unchanged through 2034 and make the Wheeler available exclusively for AMFS rehearsal and events from early June through late August each summer. Wheeler staff and board accept this existing contractual relationship and suggest that Council acknowledge the inflexibility of the contract and the operating subsidy that the Wheeler must commit for its continuance. 5 The remainder of the December 16 document frames the programming philosophy of the past seven seasons in context of the 2005 Genovese Vanderhoof Organizational Audit. It also discusses the operating principles of the Wheeler, given existing financial conditions and restrictions, as well as an overview of the operating structure of most performing arts facilities in the United States and the Wheeler's role in that community. QUESTIONS FOR CITY COUNCIL 1. The Wheeler has been maintaining Aspen's profile as one of the leading cultural communities in the nation, even when maintaining that profile has meant unusual subsidy levels for self - produced or self - promoted events, as well as significant financial assistance to non - Wheeler entities engaged in producing other arts events that also meet a high standard. To what extent shall the Wheeler continue to strategically invest in arts events and entities that maintain this year -round profile for Aspen? 2. Since late 2005, Wheeler staff has fulfilled Council's directive to drive the calendar more towards live events, to the point that there are now very few open nights in the winter season calendar. • As well, the improvement of the national economy is now allowing Aspen arts entities to re- emerge as viable co- presenters, with 2012 having the greatest amount of co- presented events since 2007. What direction shall City Council give Wheeler staff in terms of programming mix, to include self - presented and co- presented events, as well as calendar fulfillment? 3. The Wheeler has long foregone active fundraising and other non - ticket funding initiatives, in order to not compete unduly with Aspen's not - for - profit arts organizations. This has limited the ultimate underwriting of the Wheeler's many programs, especially its presenting program, to the Wheeler RETT; however, Wheeler staff is now witnessing strong donor interest for certain programs such as its 7908 Festival. Shall the Wheeler begin to strategically solicit outside funding sources, such as charitable donations, or sponsorships that do not directly compete with the fundraising efforts of other local arts groups? 4. For many years, the direction from City Council has been to maintain programs at the Wheeler, such as Community Events and the Wheeler Film Society screenings, which require a significant amount of soft- and hard -cost subsidy. Shall programs that offer no ability to reasonably recover their operating costs continue as part of the Wheeler's programming profile? 5. Rental rates for users of the Wheeler have been maintained at a very conservative level for many years, in order to attract and maintain for - profit and not - for - profit events at the facility. Even with attendance and box -office receipts now rising, many users find their cost of presenting at the venue challenging. Shall the rental structure and /or rates for the Wheeler be adjusted in order to better limit the subsidy required to serve as o publicly - available rental venue? 6 6. The Wheeler's concessions bar for many years has been intentionally determined to be "the cheapest bar in Aspen." Steps are being taken to adjust the product mix and sales strategy, but the affordability of the bar remains a central concern for Wheeler staff. Shall the Concessions program of the Wheeler be adjusted to generate significantly more revenue, even at the cost of affordability? 7. The Wheeler's Aspen Show Tickets box office operation is a major and affordable ticket services resource for the Roaring Fork Valley's many event - producing entities; however, the staffing investment is significant and even at current rates often challenges users to make their events financially successful. Shall the Wheeler rates for box office services be adjusted in order to reduce the subsidy required to serve as a ticketing resource for Aspen and the Roaring Fork Valley? 7 DATE: 17 FEBRUARY 2012 TO: MAYOR IRELAND AND ASPEN CITY COUNCIL THROUGH: ASSISTANT CITY MANAGER RANDY READY FROM: WHEELER EXECUTIVE DIRECTOR GRAM SLATON RE: WHEELER OPERA HOUSE PROGRAMS AND SUBSIDY INFORMATION — ECONOMIC IMPACTS MEETING DATE: FEBRUARY 28, 2012 SUMMARY The purpose of this document is to supplement the December 16, 2011, report to Council with financial analysis that demonstrates the non - Wheeler sales and tax impact of representative one -off events and festivals produced by the Wheeler. DISCUSSION Two spreadsheets are attached here for Council's review, in order to address the expressed question of what kind of economic impact the Wheeler's self - produced activities have on additional sales and tax revenue generation in Aspen. These spreadsheets use information and certain formulae previously used by the Special Events /Parks department to measure the economic impact of its individual events; however, the Wheeler's sheets also take into account the impact that having its talent in residency additionally provides to Aspen's total bottom line. These sheets do not take into account all of the one -off production activity that the Wheeler does in a typical season, but rather serves as a sampler of events from the past two years. In this sampling, shows that did very well for the Wheeler are included, but so are shows that performed with fair results and even some that did poorly at the box office, so that Council can have a full representation of Wheeler impacts. Some repeat shows are included, so that Council can see the cumulative effect of a repeat artist. The red columns on the "Hotel Impacts" page separate out the Room Taxes that directly benefit Aspen, as well as the full Room Taxes impact. Audiences are divided into four types — Aspen, Roaring Fork Valley (Woody Creek /Snowmass to Glenwood), Regional (all Colorado), and Out Of State. One out of six Regional attendees is assumed to stay overnight in Aspen, with one in three of Out Of State attendees also staying overnight. This seems a reasonable estimate to Wheeler staff, reviewing the zip code reports offered by the Aspen Show Tickets box office. Non -hotel spending is estimated at $25 /head for Aspen and Roaring Fork Valley attendees, and $50 /head for Regional and Out Of State attendees. Wheeler artists are estimated at $75 /head, based on feedback Wheeler staff receives from artists and retinue on their purchasing activity in Aspen during their stay. While these spreadsheets do not offer a deep- mining, multi - parsing assessment of the Wheeler's economic impact, Wheeler staff feels that it offers a reasonable "small- ballpark" study of the kinds of sales and tax impact its events have for Aspen's merchant and hospitality community, as well as in tax revenue that the City and County collect. This analysis is offered in place of securing an outside assessment firm to provide similar information; however, Wheeler staff recognizes that Council's desire may be to retain such independent assessors subsequent to the Wheeler's appearance before Council. Ain* gip' e".111' fira = , di p - � Wheeler Opera House Program and Subsidy Information 16 December 2011 Gram Slaton, Wheeler Executive Director 1 DATE: 16 DECEMBER 2011 TO: MAYOR IRELAND AND ASPEN CITY COUNCIL THROUGH: ASSISTANT CITY MANAGER RANDY READY FROM: WHEELER EXECUTIVE DIRECTOR GRAM SLATON RE: WHEELER OPERA HOUSE PROGRAMS AND SUBSIDY INFORMATION EXECUTIVE SUMMARY The purpose of this document is to review the twelve separate, yet tightly interwoven, programs of the Wheeler Opera House, as regards the nature of their activities and the amount of subsidy required to support those activities. This document is meant to serve as the foundation for a discussion with City Council as regards the Wheeler in the City's 2011 -2012 Top Ten Goals established in July of this year, specifically stated as "Design operational guidelines for Wheeler Opera House around subsidy levels, programming levels, community service, etc." Further, it is hoped that this document will be able to stand for a number of years as a comprehensive historic guide to the programs and operational practices of the Wheeler Opera House for City government officials as well as the general public. Programs are reviewed in no particular order, and a comprehensive discussion of Wheeler Event Programming, including global industry issues, unique Wheeler issues, operating impacts, and local financial impacts follows the twelve program discussions as the second half of this document. BACKGROUND At the June 20, 2011, City Council work session, Wheeler Executive Director Gram Slaton presented for Council's review a variety of data associated with the cost of self - promoted productions at the venue, including single events ( "one- offs ") and festivals. Subsidy levels for one -offs and festivals were discussed, and a request for further information was anticipated to be forthcoming from Council. During Council's annual retreat in July 2011, a review of the Wheeler's programs and present /anticipated subsidies was established as a 2011 -2012 City Council Top Ten goal to discuss and set appropriate future subsidy levels for the Wheeler. As further background, several recent historical documents have been reviewed and are referenced and attached to this document in order to give the fullest possible dimension to the discussion that Wheeler staff expects to enter into with City Council in the coming months. 2 INTRODUCTION The Wheeler breaks its public programs down into three types: • Wheeler programming (including single and festival events, and co- productions). These are events where the Wheeler takes on all or part of the financial risk for the event, which currently is recovered solely from ticket and pass sales. • Community events. These are live and film events where no admission is charged to attendees, and may be produced solely by the Wheeler or in partnership with an outside entity. There currently are no avenues for cost recovery with community events. • Wheeler Film Society events. The Wheeler Film Society takes open nights in the Wheeler calendar on a short- booking timeframe and typically features non - mainstream movies. The Wheeler is at no financial risk, but heavily subsidizes the WFS program through a limited schedule of cost recovery items. Additionally, the Wheeler considers that it also features the following programs: • General rentals. This includes live and film events, where the Wheeler is at no financial risk for the success of the event, and Wheeler costs are recovered through a cafeteria plan of services selected by the rentor through a usage contract. • Aspen Music Festival rental. This rental is guided by a 50 -year contract that expires at the end of summer 2034. While the Aspen Music Festival supplies almost all labor and programming, there are Wheeler expenses that are recovered through a limited number of expense- recovery lines. • Aspen Show Tickets. This program represents the Wheeler's box office operation and services both Wheeler- located events and events occurring offsite. More than half of Aspen Show Tickets' sales are now related to offsite events. Wheeler costs are partially offset through a number of expense- recovery lines, such as box office royalty, credit card and ticketing reimbursement, staff hour assessment, etc. • Concessions. The Wheeler's bar operation and percentage from artists' merchandise sales are represented here. • Public amenity. The Wheeler is a centrally - located public building that services visitors and residents as a meeting usage place, including second -floor gallery, public rest rooms, and ACRA satellite station. There are currently no avenues for cost recovery. • Historic property. The Wheeler is regarded as one of Aspen's premier Victorian -era buildings as well as a functioning historic theatre, and is expected to be properly preserved and state -of- the -art. There are currently no avenues for cost recovery. • Outreach and liaison. As Aspen's de facto arts resource as well as premier year -round theatre facility, Wheeler staff is regularly engaged in a consulting and advisory role. This program also reflects the Wheeler's participation in fulfilling directives and initiatives for City Council, the City of Aspen, and the Wheeler's board of directors. There are currently no avenues for cost recovery. • Leases. The Wheeler has two first -floor commercial properties in its building. Rents from these leases at present go entirely towards supporting the arts grants program. • Arts grants. The Wheeler supports the Roaring Fork Valley's 501(c)(3) not - for - profit arts community through a competitive grants process. 3 In consideration of all these programs, the Wheeler board of directors in 2009 reviewed its Mission Statement and amended it to the following: "The mission of the Wheeler Opera House is to monitor and ensure the preservation and viability of the historic venue and its property through exceptional performance experiences for residents, guests and performers, and to support the cultural assets of the Roaring Fork Valley." [Previously, the Mission Statement had been established as "To preserve the historical and cultural integrity of the Wheeler Opera House; to nurture artistic diversity; to provide educational opportunities; to provide local accessibility to the arts; and to provide excellence in performance and production for community members and visitors." Present Wheeler staff does not know the date that this Mission Statement was established.] The Wheeler board further reviewed the goals for the organization and stated them as followed, in no particular order of importance: The goals of the Wheeler Opera House are to provide appropriate facilities and resources in order to: • Assist user groups in the successful presentation of rental and community events, series, and festivals; • Foster and advocate artistic expression within the Roaring Fork Valley community; • Present world -class arts experiences to Aspen, through the production, co- production, or creation of individual events, series, and festivals; • Provide opportunities for educational experiences for students of all ages throughout the Roaring Fork Valley; • Provide a public gathering place for the use of area groups, residents, governments, and guests; • Preserve and enhance Aspen's reputation as a premiere resort destination with a dedication to arts and humanities; and • Ensure the long -term viability of the facility through responsible fiscal management. Finally, it has been the expressed desire of Aspen City Council for many years to cover the underwriting of potential and realized losses from programming and operations exclusively through use of Real Estate Transfer Tax (RETT) revenues. The RETT was established in 1979 as a dedicated tax for a twenty -year term that would support the expenses associated with renovating the Wheeler (completed in 1984) and its cost of operations. A provision for up to $100,000 of RETT funds was included to annually support Aspen's arts grants program. The Wheeler RETT was extended for a second twenty -year term, ending December 31, 2019. Use of RETT funds to support event programming has been ongoing since the reopening of the venue in 1984, and this was formalized by City Council in April 2008 when Wheeler staff asked Council to approve Ordinance 11, Series of 2008, amending section 23.48.060 (c) of the municipal code to clarify the definition of the term "maintenance of the Wheeler Opera House" as it related to the Wheeler RETT and clarifying appropriate expenditures from said fund, which Council unanimously approved (see Appendix F). Because of the RETT, it was thought inappropriate for the Wheeler to solicit individual donations, corporate donations, sponsorships, and other gifts that might otherwise go to support another Aspen - based arts group. In fact, in 1999, Aspen City Council directed the Wheeler to be the sole provider of arts grants funding for the City, making up any amount above the $100,000 allowed by the RETT from 4 operations. Thus, for twelve years now, the Wheeler has been the only source of funds for the City of Aspen's not - for - profit arts grants program. SUBSIDY METHODOLOGY At the request of City Councilman Derek Johnson, in July 2011 departments of the City conducted an exercise as the Pricing Committee, in which a City department's entire operating budget is divided across that department's individual programs, including what is known in the entertainment industry as "soft costs" (salaried personnel, utilities, maintenance, information technology, office materials and personnel - related expenses, taxes, and much more). This is a much deeper analysis than the simple show accounting that has been the Wheeler's standard practice since late 2005 (as demonstrated in Appendix B), and allows for a total view of the cost of services that the Wheeler provides. The Pricing Committee approach is brought to bear here, applied to all departmental programs of the Wheeler. For our discussion purposes, only 2011 numbers are shown. Subsidy estimates for 2012 are given below them, but the table is not represented here. The full Pricing Committee exercise tables, including 2012 projections, are included at the end of this document as Appendix A. Below each table is a brief description of the costs that are folded into the operating expense figure, including direct program expenses and proportionate relative soft costs. Co • 1 5 DISCUSSION BY INDIVIDUAL PROGRAM WHEELER EVENT PROGRAMMING: 2005 —2011 BACKGROUND The Wheeler has not been the subject of an annual goals review by City Council since 2005, so it may be beneficial to recap the programming philosophy and practices that has been followed from that period to the present. The Wheeler has produced and presented attractions since its reopening in May 1984. While there have been periodic cost analyses done since that time, comprehensive data assessments have been done as a regular part of business since late 2005. Direct event costing has been conducted for all live and film event programming, including Wheeler Presents events, community events, and festivals, as well as non - Wheeler- investment commitments such as rental events, the Aspen Music Festival's Opera Theatre season, and screenings by the Wheeler Film Society, based on direct expenses only and not including advertising costs, if any, because of the difficulty in separating out amounts from combined ads. [Festival costing is the sole exception to this.] Assessing available files from mid -2005 and earlier, Wheeler staff has been able to discern that the Wheeler's presenting history since 1984 has been one with an ongoing and significant cash subsidy. The Wheeler's one pre -2008 experience in festival production, Beyond Bluegrass, was from all indications a heavily- subsidized program that was featured for at least four seasons without any meaningful growth in attendance figures or reduction of operating subsidy. In early 2005, at the direction of City Council the Wheeler hired the firm of Genovese Vanderhoof & Associates to conduct a comprehensive audit of the Wheeler's operations. The audit, presented to City Council in July of that year, expressed sixteen recommendations for the City of Aspen to consider. Many of these recommendations were operational or organizational in nature; however, three of them spoke to a future direction for Wheeler presentations: • The Wheeler Opera House, as a civic -owned facility, would best serve the community and maximize the efficiency and effectiveness of the administrative staff by performing the role of a civic theater: Providing a space for public assembly, for the broader Aspen community's use, and not engaging in production competition with the community arts presenters and producers. • The primary mission of the WOH should be to serve the community as a cultural ambassador and facility management service. The WOH should not be in the presentation business but could encourage the use of the Theater by not - for - profit and for - profit presenters and producers through co- production partnerships. • To encourage diversity in programming, the Wheeler Opera House should establish a co- production fund from its operating budget to use as a partnership investment in local arts producers and presenters to book and /or produce presentations for the Wheeler. Of the sixteen expressed goals, six were later tabled at City Council direction, including the first two quoted above. While full consideration was given to them and their intent, it was felt that the Wheeler should continue self - presenting, in order to bring in high - profile events that other entities would be unable to financially consider as well as to fill dates in the calendar year that were less desirable, while also being sensitive to working cooperatively with other Roaring Fork Valley presenters and 6 • implementing co- productions whenever possible. This policy was implemented immediately by the new Executive Director upon arrival in October 2005. The Wheeler's first co- promoted event occurred that December (Dave Mason, with Mountain Groove Productions). In 2006, the Wheeler presented 20 single events, with 14 of these being co- promoted with the Wheeler Associates, Mountain Groove Productions, the Broadway Players, and others. In 2007, the Wheeler presented 25 single events, with 17 of these being co- promoted. New co- promoters included Aspen Film, Jazz Aspen Snowmass, and the Belly Up Aspen. On or about November 1, 2007, the early effects of the national recession hit Aspen, starting with real estate and discretionary spending items, such as show tickets. The event history from that point forward in the year shows a steep drop in attendance, which for the Wheeler was most severely felt with some of its holiday -week offerings. In 2008, the Wheeler presented 20 single events, with 7 of these being co- promoted. With the effects of the recession being immediately felt by many of the Wheeler's co- production partners, financial uncertainty and fiscal conservancy outweighed the ability for these entities to continue co- promoting with the Wheeler. The Wheeler's greatest single - program loss occurred at the end of 2008 with the repeat performance by Bernadette Peters, an artist where the contractual agreement was secured prior to the onset of the recession. 2008 also marked the Wheeler's first effort to produce a festival (The Aspen Rooftop Comedy Festival) since the decline of Beyond Bluegrass three years earlier, and in response to Aspen's loss of the HBO /U.S. Comedy Arts Festival in 2007. In 2009, the Wheeler presented 22 single events, with five of these being co- promoted. These co- promotions had far reduced risk profiles compared to 2006 and 2007. The Wheeler at this point was looked to by the City of Aspen as one of its few departments with the available funds to expand its programming profile and be used by the City as an attraction for tourism. Numbers for 2009 for single events showed a small improvement over 2008; however, the anticipated recovery from the national and global recessions did not materialize. The Wheeler also added a second festival (MountainSummit), and the numbers for its Aspen Rooftop Comedy Festival improved year- over -year. In 2010, the Wheeler presented 26 single events, with 5 of these being co- promoted. All but one of these co- promotions was for a locally- created event; the high - profile co- promotions from earlier years were effectively gone due to the continued effects of the recession. Numbers for 2010 for single events continued to improve. At the direction of City Council, the Wheeler created a third festival (the 7908 Aspen Songwriters Festival). Numbers improved dramatically year- over -year for its MountainSummit festival; however, the Aspen Rooftop Comedy Festival took a downward direction and was discontinued after its June event. Finally, the Wheeler also began a relationship with the Aspen Music Festival, to sponsor its "Live At The Met In HD" series, on terms similar to those given to the Wheeler Film Society. While not a true co- promote, it was a creative deal structure that brought a new program, partner, and audience to the Wheeler during the winter season, and continued the directive from the 2005 Genovese Vanderhoof report. For 2011, the Wheeler presented 22 single events, with four of these being co- promoted events. [The Wheeler chose to adopt a fourth, Aspen Film's Randy Newman benefit performance, when issues forced the date into a co- sponsorship.] The Wheeler also continued its "Live At The Met In HD" series with the Aspen Music Festival, and added a winter film series in partnership with Mountainfilm In Telluride, 7 which co- produces the MountainSummit festival with the Wheeler. The Wheeler replaced the Aspen Rooftop Comedy Festival with the new Aspen Laff Festival. Numbers dramatically improved for its second 7908 Aspen Songwriters Festival, as well as for its third MountainSummit festival. In sum, the results from the past six operating years indicate the following: • Wheeler management continued to present events under its own name, while remaining sensitive to the recommendations of the 2005 Genovese Vanderhoof organizational audit about unduly competing with other arts groups and presenters. • Before the recession, the Wheeler was able to attract a number of community entities into co- promotion relationships, and the decline in co- promotion activity is directly related to risk - appetites in the ensuing years. • 2008, the first full year of the recession, was the worst presenting year for the Wheeler, and numbers have steadily improved since that time (see Appendix A). • Wheeler management is only willing to support event types and festivals that show improving numbers; otherwise, such presenting activity is discontinued. Additionally, and separate from the recommendations of the Genovese Vanderhoof report, the directive received from City Council through the City Manager's office upon the new Executive Director's arrival in late 2005 was to reverse the course of the Wheeler calendar, which was short on live -event activity and disproportionately given over to the Wheeler Film Society for movies. While this was relatively easy to accomplish during 2006 and 2007 with community partners, as the national and global recession raged on it increasingly fell more on the Wheeler to take the full risk of such activity. Throughout most of these six years, conversations with City Council expressed a desire to see the Wheeler, particularly during the important winter holiday season, deliver a high - profile slate of show offerings with broadly affordable ticket prices, even if it was guaranteed that such activity, even at sell -out, would result in a substantial loss. In light of the unacceptable results for many of these high - profile artists since the onset of the recession, the Wheeler for the 2011 winter holidays chose to book an eclectic mix of performers, none of which approached the fee guarantees taken on over the past handful of years. The nature of bookings is that the majority of artists secure dates with venues anywhere from three to eighteen months ahead of the contracted engagement, so that the Wheeler (or any venue) is forced to peer into the future and do its best to estimate an act's attractiveness, as well as what other factors may or may not impact attendance. Certainly the state of the economic recovery was the most important of these factors, and the Wheeler was more optimistic about a positive uptrend for the winter seasons of 2008 — 2009 and 2009 — 2010 than was perhaps warranted. Wheeler staff suspects also that, in large part thanks to the cheap dollar, many of our winter guests since 2007 have been international in nature, and that domestic guest traffic has been hampered significantly by the recession. International guests, especially non - English- speakers, are less inclined to attend a sit -down theatre event, and guest ticketing traffic is really driven by a domestic market. However, even with these impacts, attendance numbers point to an improving picture in Wheeler attendance, with the average subsidy per show dropping in each year since 2008 (see Appendix A). In particular, the 2010 Christmas — New Year's week saw a marked improvement over 2009 (as well as 2009 over 2008), with its lowest overall loss since 2006, and the 2011 Christmas — New Year's week is anticipated to continue this upward trajectory. This is greatly encouraging as the Wheeler continues to redefine itself and establish new audiences for the venue. 8 PROGRAM DISCUSSION #1: WHEELER EVENT PROGRAMMING Revenues Current Fees $ # Revenue Ticket Revenue - Individual Events (24) $179,000 Ticket Revenue - Festivals (12 * 3) $100,000 Total Fees $279,000 Other Revenues (Gifts and Grants) Total Revenues $279,000 Expenses Current $/# % Expense GF Overhead $353,960 10.0% $35,400 IT Overhead $68,790 18.0% $12,380 Payroll $410,637 100.0% $410,640 Hours 11,731 Operating $784,910 100.0% $784,910 Capital Items $16,700 Total Cost $1,260,030 Subsidy Current Total $ ($981,030) # Users (Patrons of Rental Events) 20,000 # Individual Events 60 Per User $ (49.05) Per Event (16,351) Recovery 22% Cost /Hour $107 Capital Item Cost Useful Life Annual Monitor System (at 40 %) $24,000 10 $2,400 Sound System Components (at 40 %) $8,000 5 $1,600 Sound Console (at 40 %) $32,000 10 $3,200 Light Board (at 40 %) $16,000 8 $2,000 Lighting Components (at 40 %) $16,000 8 $2,000 Digital Projector /HD -CAM Playback (at 40 %) $44,000 8 $5,500 $16,700 9 yam. Based on the Pricing Committee exercise, the amount of subsidy for Event Programming for 2011 and 2012 is as follows: • 2011 Event Programming (including single events, festivals, and co- promotions) — $49.05 per user (actual attendee); $16,351 per event; cost recovery 22% • 2012 Event Programming (including single events, festivals, and co- promotions) — $37.87 per user (actual attendee); $12,808 per event; cost recovery 30% Prior to the Pricing Committee exercise, Wheeler staff had already done its own analysis using a slightly different and Tess detailed methodology in considering the performance of Wheeler programming over the past six years (see Appendix A and B) that indicate the following: • Wheeler event programming (based on a six -year average, 2006 - 2011) — o Small events (artist fees $10,000 /under) — $15.16 simple subsidy; $43.06 full subsidy; full cost recovery 35.7% o Medium events ($10,001 - $20,000) — $12.50 simple subsidy; $30.83 full subsidy; full cost recovery 54.5% o Large events (over $20,000) — $29.59 simple subsidy; 44.40 full subsidy; full cost recovery 67.1% o Festivals — $20.26 simple subsidy; $26.05 full subsidy; cost recovery 45.0% Using these criteria, it would appear that as a producer /presenter of events, the Wheeler financially performs best with medium -fee events, and festivals. This is because here the combination of direct - cost expenses (artist fees, hotel rooms, flights, etc.) and Wheeler fixed expenses (staffing, utilities, etc.) are most in balance; the subsidy rates are lowest and the recovery rates highest (for one -off events) or steadily improving (for festivals). There is a clear preference by the community for ticket prices that are below $50 as a maximum for such events, with scaling between $35 and $45 most easily digestible. 10 PROGRAM DISCUSSION #2: COMMUNITY EVENTS Revenues Current Fees $ # Revenue None - Events are free $0 Total Fees $0 Other Revenues Total Revenues $0 Expenses Current $/# % Expense GF Overhead $353,960 2.0% $7,080 IT Overhead $68,790 3.0% $2,060 Payroll $85,469 100.0% $85,470 Hours 2,538 Operating $66,948 100.0% $66,950 Capital Items $4,300 Total Cost $165,860 Subsidy Current Total $ ($165,860) # Users (Patrons of Rental Events) 2,800 # Individual Events 14 Per User $ ($59.24) Per Event (11,847) Recovery 0% Cost /Hour $65 Capital Item Cost Useful Life Annual Monitor System (at 10 %) $6,000 10 $600 Sound System Components (at 10 %) $2,000 5 $400 Sound Console (at 10 %) $8,000 10 $800 Light Board (at 10 %) $4,000 8 $500 Lighting Components (at 10 %) $4,000 8 $500 Digital Projector /HD -CAM Playback (at 10 %) $11,000 8 $1,375 Public Areas Faux Painting (at 10 %) $1,000 8 $125 $4,300 Since at least the beginning of 2005, Wheeler management's direction from City Council is that the Wheeler has been expected to produce and /or present a fair number of free events annually. This was documented in the minutes of the February 2, 2005, meeting of the Wheeler Board of Directors, noted as follows: "In light of recent questions from City Council, the Wheeler Board and interested community members, [Wheeler Executive Director Nida] Tautvydas opened the discussion by explaining that the 'community series' is an informal title for free events presented by the Wheeler. This is the first year 11 there has been a budget for it, as it is paid for with ticket revenues from other Wheeler events." It was further stated shortly after that time in the official Wheeler Mission Statement, Goals, and Artistic Mission Statement (dated February 25, 2005), as "Wheeler Opera House Community Series: To provide programs free of charge; to provide collaborative opportunities with local artists and arts organizations." What is now simply collected under the program title of Community Events encompasses such varied programming as the Aspen Center For Physics winter lecture series, certain Winterskol events, screenings of films with a beneficial community nature, fundraisers for ad hoc charity groups, Aspen Historical Society events, and many others. The crucial criteria for an event to be accepted as a community event are that it needs to appeal to a broad and general Aspen audience, clearly have no commercial benefit to the presenter or partner, and offer free admission to all audience members. By its very nature, there are no avenues for cost recovery available for Community Events. This makes Community Events a rather expensive program of the Wheeler when all soft costs are taken into account, as shown below: • 2011 Community events — $59.24 per user; $11,847 per event; cost recovery 0% • 2012 Community events — $55.22 per user; $10,629 per event, cost recovery 0% [The 2012 projection assumes 10% audience growth, and that the Wheeler will reduce its investment in community events by producing fewer of them or lessening their costs, in particular for Winterskol.] Community Events are typically not expensive in terms of direct, program - related costs. The real cost is associated with the elements of staff time, systems usage, and building operating expenses (such as heating and cooling), and clean -up. Wheeler staff feels that the Community Events program is an important and vital part of being a public - benefit venue, and continues the 2,500 -year tradition of having theatres serve as meeting places for their communities. The "public forum," accessible -to -all quality of the Wheeler is one that is unique in Aspen venues, for both presenter and audience member, and indirectly serves to expose new audiences to the Wheeler that otherwise may never attend a Wheeler event. However, it is important to realize the considerable expense associated with this program and make a determination as to whether it should continue as is, or be modified to allow some form of cost recovery. 12 PROGRAM DISCUSSION #3: WHEELER FILM SOCIETY Revenues Current Fees $ # Revenue Per -Head Fee (2010 numbers) $0.50 3,500 $1,750 Set -Up Fee (Per Screening) $25 100 $2,500 Credit Card /Other Reimbursement $750 $0 Total Fees $5,000 Other Revenues Total Revenues $5,000 Expenses Current $/# % Expense GF Overhead $353,960 5.0% $17,700 IT Overhead $68,790 3.0% $2,060 Payroll $66,942 100.0% $66,940 Hours 3,598 Operating $16,509 100.0% $16,510 Capital Items $ Total Cost $103,210 Subsidy Current Total $ ($98,210) # Users (Patrons of Rental Events) 6,400 # Individual Events 135 Per User $ ($15.35) $ Per Event (727.48) Recovery 5% Cost /Hour $ Capital Item Cost Useful Life Annual WFS is responsible for all capital expenses associated with this program The Wheeler Film Society (WFS) operates as a City Council- approved service provider to fill dates in the Wheeler calendar that otherwise would be dark. Operated by Aspen -based resident Jon Busch and his Ohio -based partner Don Swales, WFS has in one form or another presented mostly non - mainstream films at the Wheeler since the 1970s. Since 2007, WFS has worked under a three -year service contract, with selection made after a Request For Proposal process; the existing contract is in its second year. WFS has for at least six years been recognized as a program of the Wheeler that does not offer a reasonable return. The 2005 Genovese Vanderhoof report stated, "Interested stakeholders should 13 realize that film presentation is less efficient in the Wheeler Opera House and therefore, will cost more per attendee than in a purpose built cinema. However the decision of management or stakeholders to present film, for historic reasons, the special ambiance, the desire to have visible activity in the theater, and perhaps the lack of alternate screening venues should be made with the acknowledgement that this is not an efficient place to exhibit films." The reality of the movie - exhibition industry's economics is that it is driven more through concessions sales than ticket revenue (because the film distributor will claim between 35% and 90% of ticket sales), with a majority of individual cinema screens sized between 90 and 250 seats. Thus, a single- screen and large - volume hall such as the Wheeler cannot hope to have its fixed expenses, such as costs of utilities, staffing, clean -up, and account management, recovered through any revenue stream associated with such a program, as it presently exists. WFS has in recent years seen an average attendance that confirms this inefficiency: 47 per screening for 2007, 51 for 2008, 43 for 2009, and 46 for 2010. Current cost recovery for the Wheeler is limited to a $25 per- screening set -up fee, a $.50 per- ticket surcharge, and recovery of ticket stock and credit card expenses. These same terms have been in place for a number of years, and it would be very difficult to expand the Wheeler's ability to recover more revenue in the current service- provider relationship. Thus, the subsidy levels for the WFS program read as follows: • 2011 WFS events — $15.35 per user; $728.48 per event; cost recovery 5% • 2012 WFS events — $15.82 per user; $749.78 per event; cost recovery 5% As a footnote, Wheeler staff in 2011 ran its own winter film program in support of its MountainSummit festival, and had an average attendance of 85 per screening over seven separate -title screenings. Thus, Wheeler staff feels that if film exhibition is a program that is found desirable for continuation, there is evidence that it may be more efficiently handled in- house, or at least that there are improvements that can be made in the attendance and concomitant subsidy numbers. rAti 14 PROGRAM DISCUSSION #4: GENERAL RENTALS Revenues Current Fees $ # Revenue Full Day Theatre Rental (For Profit) $475.00 20 $9,500 Full Day Theatre Rental (Not For Profit) $275.00 68 $18,700 Theatre Technicians (FP) $25.50 316 $8,058 Theatre Technicians (NFP) $24.00 1,200 $28,800 Custodial (FP) $70.00 20 $1,400 Custodial (NFP) $50.00 68 $3,400 Box Office % 5% n/a $20,850 Credit Card Fees 3.50% n/a $12,200 Ticket Printing (FP) $0.085 6,000 $405 Ticket Printing (NFP) $0.05 22,000 $1,217 Ticket Sellers (FP & NFP) $15.50 45 $698 Box Office Set Up Fee $25.00 5 $125 Total Fees $105,350 Other Revenues (Equipment Rental) $0 Total Revenues $105,350 Expenses Current $/# % Expense GF Overhead (COA Bundle of Services) $353,960 10.0% $35,400 IT Overhead (COA Bundle of Services) $68,790 18.0% $12,380 Payroll $316,929 100.0% $316,930 Hours 9,485 Operating $57,676 100.0% $57,680 Capital Items $22,400 Total Cost $444,790 Subsidy Current Total $ ($339,440) # Users (Patrons of Rental Events) 25,000 # Individual Events 88 Per User $ (PREDICATED ON 100% OF FEES COLLECTED) (13.58) Per Event (PREDICATED ON 100% OF FEES COLLECTED) (3,857.27) Recovery 24% Cost /Hour $47 Capital Item Cost Useful Life Annual MonitorSysterh (at 1/2) $30,000 10 $3,000 Sound System Components (at 1/2) $10,000 5 $2,000 Sound Console (at 1 /2) $40,000 10 $4,000 Light Board (at 1/2) $20,000 8 $2,500 Lighting Components (at 1/2) $20,000 8 $2,500 Digital Projector /HD -CAM Playback (at 1/2) $55,000 8 $6,875 Public Areas Faux Painting (at 1/2) $5,000 8 $625 Concessions POS System (at 1/2) $9,000 10 $900 $22,400 15 This program takes into account all rentals that all booked at the Wheeler through a standard Usage Agreement contract with the City Council- approved usage rates in effect. General rentals may take place anytime from September through early June. Prior to 2006, the Wheeler's usage rate schedule was inverted; that is, the cost of the rental of the facility was set high (roughly about $1,000 per rental day), but the cost of rental services, such as for stagehand labor, was set at a rate that was far less than 50% of actual labor costs. Wheeler management corrected this in 2006 with a usage rate schedule that reflected a fair cost for building wear and tear and utilities usage, but increased the costs for labor to an amount roughly equivalent to the simple hourly rate for full -time and part -time employees. These rates have not been meaningfully increased since that time (incremental steps only). Even with this charge /relationship correction, the effects of the national recession were felt almost immediately by arts not - for - profits and drops in attendance for their rental events meant that they often requested that the Wheeler reduce or eliminate rental line items in order to help them survive their usage activity. Wheeler management made such reductions after reviewing this need with City management and the Wheeler board of directors. This was meant to be a temporary measure, particularly in the mid -2008 — late 2009 timeframe, but the failure for the local and national economies to shake off the recession meant that this policy was often extended throughout 2011. Wheeler management has informed rental clients that this policy is being discontinued, and that rentors will be expected to pay rental costs in full from 2012 onward. The subsidy levels for the General Rental program are as follows: • 2011 General Rentals — $13.58 per user; $3,847.27 per event; cost recovery 24% • 2012 General Rentals — $12.58 per user; $3,576.00 per event; cost recovery 26% The subsidy level is driven up by the considerable cost of keeping the technical systems of the Wheeler at a level considered state of the art. Fully one -half of the usage of this equipment is for General Rentals events, many of which are by clients such as Aspen Film and the Aspen Institute that expect to have a fully- outfitted venue to match their high technical standards. This creates something of a conundrum, in that Aspen audiences also expect these same high standards, yet it is often beyond the capability of the rental client to help meaningfully recoup the costs of such equipment. 16 PROGRAM DISCUSSION #5: ASPEN MUSIC FESTIVAL RENTAL Revenues Current Fees $ # Revenue Space Rental $66 70 $4,600 Tech Labor $10 84 $840 Reimburseables $1,900 Miscellaneous $1,350 Total Fees $8,690 Other Revenues Total Revenues $8,690 Expenses Current $/# % Expense GF Overhead $353,960 8.0% $28,320 IT Overhead $68,790 2.0% $1,380 Payroll $53,311 100.0% $53,310 Hours 1,685 Operating $18,448 100.0% $18,450 Capital Items $0 Total Cost $101,460 Subsidy Current Total $ ($92,770) # Users (Patrons of Rental Events) 6,400 # Individual Events (rental days) 70 Per User $ ($14.50) $ Per Event (1,325.29) Recovery 9% Cost /Hour $60 Capital Item Cost Useful Life Annual None $0 0 This program covers the portion of the Wheeler's rental activity dedicated purely to the agreement with the Aspen Music Festival and School (AMFS), which in the early 1980s helped close the funding gap for the Wheeler's comprehensive renovation by contributing $250,000 towards the project. In exchange for this gift, AMFS received a fifty -year agreement for exclusive use of the Wheeler during the ten weeks of summer. The terms of the agreement are largely governed by changes in the Consumer Price Index, which affect the discount given annually for space rental, so that over the years the amount of reimbursement for rental and labor has steadily become reduced: 17 [Theatre Use Agreement, dated 26 January 1984, Section V, paragraph 1(b)] "MAA shall receive a credit against the annual Theater -use charges in the amount of Twelve Thousand Five Hundred Dollars ($12,500) per year for each year during the primary term or any renewal term of this agreement .... And said credit shall be adjusted each year for any increase in the cost of living by use of the formula set forth in Paragraph V(c)(i) below, using 1984 as the base year." Paragraph V (c) states "Increases in Theater -use charges shall be limited to the lesser of: (i) The 1984 schedule as attached hereto as adjusted for any increase in the cost of living as defined by CPI -W, US City Average Wage Earners Clerical Workers, 1967 = 100, or comparable government compilation if CPI -W is discontinued; or (ii) The comparable schedule of Theater -use charges for non - profit organizations." The Wheeler enjoys an excellent relationship with AMFS, and its usage of the facility during the summer does not engage the same amount of systems and staff usage as is incurred through the General Rentals program. AMFS brings its own tech equipment (except for stage lighting), and box office and management staff; Wheeler support is mostly limited to house management and building clean -up. Still, the recovery ability of the Wheeler is small, and there are no avenues for change unless such change is requested by AMFS. In other words, under the existing agreement, AMFS would have to ask us if we would be willing to change the rates so that they could pay us more for their usage. The agreement with AMFS is in place through the summer of 2034. The subsidy levels are: • 2011 AMFS Rentals — $14.50 per user; $1,325.29 per event; cost recovery 9% • 2012 AMFS Rentals — $14.96 per user; $1,367.71 per event; cost recovery 8% 18 PROGRAM DISCUSSION #6: ASPEN SHOW TICKETS Revenues Current Fees $ # Revenue Box Office @ 6% $55 880 $48,210 Credit Card Fees $20 880 $17,740 Ticket Sellers (FP & NFP) $30 80 $2,400 Box Office Set Up Fees $25 195 $4,875 Per -Order Processing Fees $4 7,800 $31,200 Total Fees $104,430 Other Revenues Total Revenues $104,430 Expenses Current $/# % Expense GF Overhead $353,960 8.0% $28,320 IT Overhead $68,790 25.0% $17,200 Payroll $126,681 100.0% $126,680 Hours 3,973 Operating $39,619 100.0% $39,620 Capital Items $13,000 Total Cost $224,820 Subsidy Current Total $ ($120,390) # Users (Events) 881 in 2010 880 Per User $ ($137) Recovery 46% Cost /Hour $57 Capital Useful Capital Item Cost Life Annual Ticketing System Software (initial) $80,000 10 $8,000 Ticketing System Upgrades $10,000 2 $5,000 Item 10 $0 0 $13,000 Aspen Show Tickets was the name given to the Wheeler box office operation when it was rebranded in 2008 at the prompting of the Aspen Santa Fe Ballet, which correctly observed that the box office was servicing more outside sales than sales for activities occurring inside the Wheeler. The Wheeler continues to attract clients seeking box office services for their events offsite to the Wheeler, and this program is expected to continue growing in 2012 and future years. The Wheeler crossed $1 million in sales for 2011 before the end of July, and anticipates that, even with a very limited availability for 19 Wheeler events to the end of the year, it will pass $1.8 million before December 31. Ticket processing fees and royalty from ticket sales for clients are directly passed into the Arts Grants program. In 2005, the Genovese Vanderhoof organizational audit made the following recommendation: "Consideration should be given to the Wheeler Opera House administering a central box office for all the Aspen arts activity. To be effective at this function, the facility will need to secure new ticketing software that has both ATM and web capability, such as Tessitura or the Aspen Music Festival's new ticketing system currently in development." While there was usage by outside groups, this portion of the Wheeler profile grew very rapidly after 2005, particularly with the introduction of a new ticketing system that used the same platform as the Aspen Music Festival and School, as recommended. This new system ultimately proved not to move with the needs of the Wheeler's /Aspen Show Tickets' clients, and so was replaced with a second system in mid -2010. Sophisticated ticketing systems can be hugely expensive — they require an initial purchase, extensive set- up and training costs, and monthly maintenance fees. This is one reason why arts patrons outside of the Roaring Fork Valley who are regular ticket buyers are used to paying a per- ticket fee, a per -order fee, and often a third fee mysteriously labeled as a "convenience fee." The Belly Up Aspen, on its website, explains its service charges this way: In most situations, a service fee is always added to the price of the ticket. We make every effort to keep this service charge as low as possible. This fee covers the overhead charges involved in box office operations not limited to ticketing software fees, credit card fees, labor, ticket stock, phone fees and more. Sometimes the service fees charged are directed to us by the promoter, and sometimes includes fees all ticketing outlets are forced to charge for a show, such as venue facility fees, parking fees, etc. Thank you for supporting our independent business and understanding that this small fee helps to keep us in business." Additional to the cost of hardware and software is the considerable staff expense of servicing venues offsite. During the hectic summer season, Wheeler personnel frequently run between venues such as Paepcke Auditorium, the District Theatre, and Theatre Aspen's tent. The box office fee schedule for Aspen Show Tickets, which roughly parallels that for rental events at the Wheeler, does not adequately provide for recovery of all the expense associated with such a labor- intensive program. Wheeler staff has regularly reviewed the fees associated with its box office /Aspen Show Tickets operation, but has understood (as with other programs of the Wheeler) that the direction from City Council has been to keep Wheeler services as affordable as possible for all Aspen residents and guests. In the case of Aspen Show Tickets, this has meant resisting per- ticket fees, and limiting the per -order fee to $4 for phone and internet orders and free for walk -up purchases. Part of the problem in factoring a solution to bridging the gap between expense and fair recovery is how to treat surcharges associated with movie tickets. Assessing a per- ticket fee for a live show with an average $35 ticket is significantly different from adding even $1 to the cost of a $12 movie ticket, and we suspect would not go over well with the Aspen populace. Thus, caution is urged in the consideration of per- ticket fees. [This would also be true with Aspen Institute tickets, which typically are at or around $10 for Ideas Festival -type events.] Similar caution is urged regarding increases in the individual lines for fees, as many of our user groups have had difficulty navigating through the cost of presenting under present conditions (considering show cost, venue rental, and other associated costs as well as Aspen Show Tickets expense). In Wheeler staffs opinion, in order to remain competitive locally, any and all fee increases will need to be carefully phased in. 20 The subsidy levels for Aspen Show Tickets, including events at the Wheeler and offsite, are: • 2011 Aspen Show Tickets — $137 per user /event; cost recovery 46% • 2012 Aspen Show Tickets — $121 per user /event; cost recovery 53% A% 21 PROGRAM DISCUSSION #7: CONCESSIONS Revenues Current Fees $ # Revenue Sale of Goods (by budget) various $48,000 $0 Total Fees $48,000 Other Revenues Total Revenues $48,000 Expenses Current $/# % Expense GF Overhead $353,960 1.0% $3,540 IT Overhead $68,790 1.0% $690 Payroll $39,325 100.0% $39,320 Hours 2,766 Operating $47,692 100.0% $47,690 Capital Items $2,250 Total Cost $93,490 Subsidy Current Total $ ($45,490) # Users Per User $ #D1V /0! Recovery 51% Cost /Hour $34 Capital Item Cost Useful Life Annual Concessions POS System $18,000 8 $2,250 Item 2 $0 0 $2,250 The Concessions program covers all Wheeler bar sales as well as the percentage that the Wheeler retains on sales of artist merchandise at performances. It is considered as its own department, even though activity for it occurs during Wheeler Event Programming, Wheeler Film Society screenings, General Rentals, and AMFS Rentals. The artist merchandise percentage is directly passed into the Arts Grants program. Prices for concessions items have been kept very low for many years, with the understanding that the Wheeler needed to offer the most affordable bar service in Aspen. Concessions sales are additionally diluted by the relationship with events for Aspen arts not - for - profits that may retain a beer, wine, or other sponsor, which then requires them to give away free product and stanch bar sales. While this can be with a provider that the Wheeler regularly buys product from (such as for Bud Light) and receives 22 product in lieu of sales, this can also be with a specialty spirits provider, such as a vodka brand, where the free product actually has no real future value and is eventually disposed of through a low -cost "specialty drink" event, thereby reducing other, higher- margined sales. Concessions activity cannot at present be measured per -user, as there is no direct correlation between event attendance and actual bar interaction. In other words, 400 people at an event do not equal 400 trips to the concessions bar. The limited timeframe in which the concessions bar is open (typically abbreviated to the time before the start of an event and at intermission, if an intermission is available) means that much of the labor cost associated with the program is being dedicated to setting up for the evening, and then tearing down after close, which is about 45 minutes total time. In a typical bar situation, where this time is being prorated over the course of eight to ten hours, the cost is absorbable; however, in a timeframe that is at the most two hours, it is highly impactful. The other consideration is that the Wheeler concessions bar is expected to be open for all events, including Wheeler Film Society movies that, as previously discussed, have an average draw of less than 50 people per screening. Steps have been taken and are continuing to be taken to make this service more cost - efficient; however, it is a service that movie patrons expect to be provided if the film program is to be ongoing. It may be possible to transition movie concessions staffing to volunteers who would serve a limited menu of food and beverage choices, but this is in the discussion stage and has not yet been raised with the existing Wheeler volunteer corps. The Wheeler concessions bar serves a largely captive audience at intermissions (although there has always been some attrition, whenever the availability presents itself, for some audience members to instead frequent the commercial bar inside the Wheeler building), and Wheeler staff believes that it can appreciatively increase its cost recovery through a repricing of its sales items, which is presently underway. Wheeler staff would not recommend a reduction of product quality, which is a typical way of boosting margins, because its clientele is used to being served a high - quality product, but Wheeler staff is reducing the product mix to reflect its best performers, as well as recalibrating its volume of unit served to make sure that all possible improvements can be effected. The Wheeler is also experimenting with sharing its bar staff with box office as ticket sellers (and vice versa) in order to take better advantage of human resources already scheduled for work during a show call. The subsidy levels for Concessions are: • 2011 Concessions — cost recovery 51% • 2012 Concessions cost recovery 68% The anticipated increase is derived through a combination of a more efficient operation, as noted above, as well as higher- energy bar service as the Wheeler moves into 2012. AN 23 PROGRAM DISCUSSION #8: PUBLIC AMENITY Downtown Amenity Revenues Current Fees $ # Revenue None $0 Total Fees $0 Other Revenues Total Revenues $0 Expenses Current $/# 90 Expense GF Overhead $353,960 10.0% $35,400 !T Overhead $68,790 1.0% $690 Payroll $48,388 100.0% $48,390 Hours 1,664 Operating $43,793 100.0% $43,790 Capita! Items $11,780 Total Cost $140,050 Subsidy Current Total $ ($140,050) # Users (figured as days per year) 360 Per User $ ($389) Recovery 0% Cost /Hour $84 Capital Item Cost Useful Life Annual Carpet Replacement $50,000 10 $5,000 HVAC Upgrades /Chiller(s) $85,000 25 $3,400 Building Exterior Awnings $13,500 4 $3,375 $11,780 As the City's most visible and trafficked building, and located in the epicenter of the downtown core, the Wheeler experiences a high level of visitors that are not associated with any of its other programs. Because it is meant to be a welcome center for guests and residents alike, and for 360 days a year and a minimum of ten hours per day, there are numerous soft costs that can be associated with this program. The Wheeler's second -floor lobby has long been a place for public art, featuring Roaring Fork Valley artists and photographers. In recent years, Wheeler management has stepped up its support of this aspect of the program, inviting residents and guests to visit art displays during regular business hours. 24 As one of the two downtown sites for an ACRA Visitor Center, the Wheeler first -floor lobby is expected to be open almost all days of the year, including those when the Aspen Show Tickets operation is closed or experiencing limited hours. This requires heating and cooling, as well as additional cleaning, particularly for the two public rest rooms located just off the lobby area. During the winter, Wheeler staff must be vigilant to keep the sidewalks and entries clear of snow and ice, and maintain the welcoming presence that should be expected of a public amenity. This extends also to the awnings of the building, which are not historic in nature but do dress out the exterior of the building appropriately and increase its desirability. Finally, night - lighting of the first -floor lobby interior is done as efficiently as possible, but still retains a cost to keep the building noteworthy to passersby as a guest center and gathering place. At present, there are no avenues for cost recovery for the Wheeler's presence as a Public Amenity. The subsidy levels for the Wheeler as a Public Amenity are: • 2011 Public Amenity — $389 per user (days per year); cost recovery 0% • 2012 Public Amenity — $399 per user (days per year); cost recovery 0% 25 PROGRAM DISCUSSION #9: HISTORIC PROPERTY Historic Property Revenues Current Fees $ # Revenue None $ Total Fees $ Other Revenues Total Revenues $ Expenses Current $/# % Expense GF Overhead $353,960 12.0% $42,480 IT Overhead $68,790 10.0% $6,880 Payroll $66,586 100.0% $66,590 Hours 1,726 Operating $39,072 100.0% $39,070 Capital Items $17,420 Total Cost $172,440 Subsidy Current Total $ ($172,440) # Users (figured as days per year) 360 Per User $ ($479) Recovery 0% Cost /Hour $100 Capital Item Cost Useful Life Annual Faux Paintwork (touch -ups) $10,000 3 $3,333 Faux Paintwork (comprehensive) $30,000 15 $2,000 Roof Replacement $75,000 20 $3,750 Building Exterior Work $25,000 3 $8,333 $17,420 The Wheeler Opera House is on the State of Colorado and National Historic Registers, and is often cited as the most - beloved structure in Aspen. It is also recognized as one of the most architecturally significant historic American theatres, with a high degree of decorative arts, particularly its faux artwork throughout the audience chamber. All of this comes with a cost, which is the price of maintaining the building in a manner consistent with historic treasures, especially since so many of its original elements (such as the peachblow sandstone) remain in place. 26 The Genovese Vanderhoof organizational audit recognized the cost associated with having a high - volume, constant -use facility also be one of Aspen's most outstanding historic icons: "The Wheeler Opera House as a historic restoration could function as either a museum and /or working theater. Connected to the policy decision to operate the Wheeler Opera House as a working theater is a realization that the facility is going to sustain more wear and tear, damage and require a higher level of staff time and expense than a non - heritage facility." Anyone who has read the Wheeler's history knows the costs associated with not keeping ahead of regular maintenance for a building of its age and structural elements: Bringing the building back to a truly usable condition after World War II took three efforts and nearly forty years, not to mention millions of dollars. Historic preservation assures that the replacement and repair of elements of the Wheeler will require significantly more staff time than would be required for a non - historic building. Thus, the cost of staff time associated with the drafting of RFPs, consultations with architects and other construction professionals, City staff, specialty vendors, and many others weighs heavily on the cost of this Wheeler program. Compounding this is the effort required to make a 19` Century opera house a fully - functioning theatre for the 21 Century, with much staff time going into how to make present needs work around existing conditions without compromising the historic integrity of the interior or exterior. At present, there are no avenues for cost recovery for the Wheeler's presence as an Historic Property. The subsidy levels for the Wheeler as an Historic Property are: • 2011 Historic Property — $479 per user (days per year); cost recovery 0% • 2012 Historic Property — $491 per user (days per year); cost recovery 0% 27 PROGRAM DISCUSSION #10: OUTREACH AND LIAISON Revenues Current Fees $ # Revenue None $ Total Fees $0 Other Revenues Total Revenues $ Expenses Current $�# % Expense GF Overhead $353,960 30.0% $106,190 IT Overhead $68,790 15.0% $10,320 Payroll $96,322 100.0% $96,320 Hours 2,059 Operating $19,547 100.0% $19,550 Capital Items $ Total Cost $232,380 Subsidy Current Total $ ($232,380) # Users (1 Bd, 1 CC, 12 groups) 14 # Days (10 Bd mtgs, 10 CC mtgs, 50 otr) 70 Per User $ (16,599) Per Event (3,320) Recovery 0% Cost /Hour $113 Capital Item Cost Useful Life Annual None $0 0 so The Wheeler is arguably the most public- engaged department of the City of Aspen, not only regularly entertaining and interacting with 56,000 event attendees per year but also by virtue of its role of supporting the arts community. The Wheeler is also one of the few departments of the City of Aspen that has its own City- appointed advisory board (the Wheeler board of directors), which engages Wheeler management in meetings approximately ten months of the year and special meetings with City Council, boards of other Aspen not - for - profits, and individuals as needed or desired. There can be substantial time invested in the research and creation of memos and reports, particularly by the Wheeler's Executive Director. Wheeler management staff time is also regularly engaged in the planning of events, the majority of which come to fruition either at the Wheeler or elsewhere in Aspen. This includes sitting on the Special 28 Events committee, participating in City initiatives such as the USA Pro Cycling Challenge, and taking meetings with interested citizens with no previous experience in event production. Figuring the user profile as consisting of one board, one City Council, and a minimum of twelve user groups, for a total of fourteen users; and day - profile as consisting of ten board meetings, ten City Council meetings, and a minimum of fifty other types of meetings per year, the subsidy levels for the Wheeler's Outreach And Liaison program are as follows: • 2011 Outreach — $16,599 per user; $3,320 per event /day; cost recovery 0% • 2012 Outreach — $17,116 per user; $3,423 per event /day; cost recovery 0% 29 PROGRAM DISCUSSION #11: LEASES Revenues Current Fees $ # Revenue Space Rental $84,430 Overage (8% of gross sales vs rental) $0 Recovery of trash, utilities $5,570 Total Fees $90,000 Other Revenues Total Revenues $90,000 Expenses Current $/# % Expense GF Overhead $353,960 4.0% $14,160 IT Overhead $68,790 3.0% $2,060 Payroll $14,867 100.0% $14,870 Hours 354 Operating $15,103 100.0% $15,100 Capital Items $0 Total Cost $46,190 Subsidy Current Total $ $43,810 # Users 2 Per User $ $21,905 Recovery 195% Cost /Hour $131 Capital Item Cost Useful Life Annual None $0 0 $o The Wheeler Opera House, since its inception in 1889, has featured at least two commercial spaces at the first -floor location. Originally, these were men's and women's clothing stores, plus the Wheeler Bank's retail and deposit storefront. Since 1984, these have been a restaurant establishment in the larger of the two spaces, and a variety of retail businesses in the smaller plain -box space at the northeast end of the building. Since 1999, when the Wheeler was assigned to take on the full responsibility for the City's arts grants program (see "Arts Grants," below), all revenue from the two lease spaces has been passed directly through the Wheeler to be deployed for grant -award obligations; thus, the revenue has in no way been absorbed into the operation to offset expenses directly associated with the Wheeler, such as repair and maintenance, or staff time dedicated to processing payments and needs of the lease holders. 30 • 2011 Lease Spaces — $23,095 per user ($46,190 cost divided by 2 spaces); theoretical cost recovery 166 %; actual cost recovery 0% • 2012 Lease Spaces — $15,272 per user ($47,480 cost divided by 2 spaces); theoretical cost recovery 357 %; actual cost recovery 0% This program's subsidy calculation is different from those of any other Wheeler program, because at first glance it would appear to be a revenue generator for the Wheeler. The subsidy expense is factored from the total costs of carrying this program, and evenly divided between the two properties (which may or may not be equitable, depending on how the future needs of both clients impacts staff time and expense). If the program was allowed to keep its revenue, there would be a strong rate of return that could then be used to offset other Wheeler program expenses, but as all lease revenue is presently transferred immediately to support the Arts Grants program, there is in fact a zero cost recovery. 31 PROGRAM DISCUSSION #12: ARTS GRANTS Revenues Current Fees $ # Revenue $0 Total Fees $ Other Revenues Total Revenues $ Expenses Current $/# % Expense GF Overhead $353,960 0.0% $0 IT Overhead $68,790 1.0% $690 Payroll $1,392 100.0% $1,390 Hours 21 Operating $356,254 100.0% $356,250 Capital Items $ Total Cost $358,330 Subsidy Current Total $ ($358,330) # Users (Grant recipients) 17 Per User $ ($21,078) Recovery 0% Cost /Hour $17,227 Capital Item Cost Useful Life Annual None $0 0 $0 The Arts Grants program is a City- sponsored program that was shifted exclusively to the Wheeler in 1999 by City Council, in order to access Wheeler resources and relieve the City's general fund from continuing to carry this annual expense. By its enabling language, the 1979 Wheeler Real Estate Transfer Tax ordinance allows the Wheeler to deploy up to $100,000 of RETT funds annually for support of the Roaring Fork Valley's not - for - profit arts groups. Additional monies from the Wheeler to support this initiative must be made up through non -RETT operating revenues (see Appendix E — 2008 Ordinance, "Clarification of the definition of 'Maintenance of the Wheeler Opera House ') . There are few revenue streams at the Wheeler that are considered "pure" and not touched by the RETT. Principle among them is the rental revenue from the two lease spaces at first -floor level, but additional funding comes from ticket processing fees, artists merchandise percentage, and other sources that are considered relatively unimpacted. The Arts Grants funds are released to Roaring Fork Valley arts not - for - profits through a competitive grant process that takes place annually, with award amounts suggested to City Council at the time of 32 approval of the annual operating budget. Applications are assessed by a citizen committee, with a City representative (typically the City Clerk) and the Wheeler Executive Director as voting members. Since taking over the entirety of the Arts Grants program, total arts grants awards per year have been as follows: • $299,083 for 1999 • $277,500 for 2000 • $292,600 for 2001 • $400,144 for 2002, including an extra $100,000 for one -time requests • $303,800 for 2003 • $315,800 for 2004 • $337,400 for 2005 • $342,000 for 2006 • $365,380 for 2007 • $385,100 for 2008 • $352,900 for 2009 • $344,990 for 2010 Going forward, one of the most important considerations for the Arts Grants program is that the leases for the renovated first -floor lease spaces (effective January 1, 2012) will generate less revenue that can be transferred to support this program. There is a percentage of sales provision in the lease for the restaurant space that may eventually supply additional funds for this program, but that is dependent on the success of the restaurant venture and crossing certain gross- revenue thresholds, and therefore cannot at this time be considered as a reliable source for program funding. This will put an additional burden on attaining certain revenue levels in other Wheeler program departments if the current level of funding is to be continued, especially if these same departments are expected to better approach relief from subsidy. • 2011 Arts Grants — $21,078 per user (over 17 groups); cost recovery 0% • 2012 Arts Grants — $21,082 per user (over 17 groups); cost recovery 0% 33 PART TWO: ADDITIONAL NOTES ON EVENT PROGRAMMING, SUMMARY, AND NEXT STEPS The Wheeler compared to other venues: The Wheeler's Executive Director has since 1990 been a member of a large community of arts venues and their operators, particularly in the densely - concentrated Middle Atlantic and New England region, and within that group (and likely elsewhere) the informal yet generally- accepted standard minimum qualifications for considering establishing a successful theatre include having 1,200 sellable seats, located in an immediate population base of at least twenty times its audience size. Such a theatre will support a handful of modest events managed by a very small full -time staff, with a minimum of one of these dedicating a majority of his /her time to fundraising, no matter if the venue is a free - standing 501(c)(3) not - for - profit entity or a department of local, state, or federal government. [The smallest practical qualifications for a venue are more along the lines of 1,500 — 1,600 seats within an immediate population base of at least thirty times its audience size, and this still requires major and constant fundraising activity.] This brings into focus the question of how exactly a small venue defines financial success. At the state - owned Empire State Performing Arts Center ( "The Egg") in Albany, New York, where Wheeler Executive Director Gram Slaton started his arts management career in 1990, and which features a 986 -seat large stage and 444 -seat arena stage, a show was deemed by its board of directors to be financially successful if the artist fee was covered by ticket sales. Covering the additional costs of presenting was deemed icing on the cake, and in fact rarely if ever happened, even in the larger of the two venues. At the quasi- state -owned (by virtue of the Pennsylvania State University system) Community Arts Center (Williamsport, Pennsylvania), where Slaton spent twelve years as Executive Director, a performance was not deemed financially successful in the 2,165 -seat hall unless all direct expenses were covered by ticket sales and a healthy overage remained to offset some of the venue's additional day -to -day expenses. However, at both venues the ultimate determination of whether programming was successful was the overall health of the organization as evidenced by the bottom line of its monthly financial statements, and whether the venue was at or above where it was scheduled to be by its annual operating budget. This meant, in the case of both venues stated above, supplementing ticket and bar sales with alternate - funding sources, including regular fundraising and benefit events, as well as a substantial infusion of direct monetary support from the parent organization. This monetary support could run anywhere from 8% - 10% of the venue's total operating budget (as in the case of the Community Arts Center) to 40% - 50% (for the Empire Center). In both cases, there was an equal "soft investment" by the parent organization in terms of operating support, including Comptroller, Human Resources, and Physical Plant sharing (for the Community Arts Center), or a host of services, including utilities, provided under the government umbrella of the Office of General Services (for the Empire Center). However, in most cases it's fair to say that there are four legs to the stool that supports a performing arts venue's event programming: Ticket sales, fundraising, sponsorships, and asset resources. Asset resources can include everything from investment of excess funds to property management to outsourcing staff services, and much more, depending on the unique assets of the venue involved. At present, of these four legs the Wheeler has access only to ticket sales. Fundraising, sponsorships, and asset resources can make up as much as two - thirds of a performing arts center's annual operating budget. In Colorado, the hugely successful multi -stage Denver Center for the Performing Arts (DCPA) derived fully 30% of its 2010 operating revenue from these sources for its 34 complex of performance venues.' For the historic Sheridan Opera House, a 235 -seat theatre in Telluride, staff recognizes almost all revenue as fundraising, with 35% segregated as board and individual donations. For the Vilar Center in Beaver Creek, whose 530 -seat capacity most closely matches the Wheeler's, the development number is 60% (as a combination of fundraising and tax support)? These non- ticket -sales initiatives allow such venues the financial latitude to produce and present quality shows while offering ticket prices that are considered reasonable by their constituents. Asset resources can be an extremely important revenue feeder for event programming support, taking many forms. There are communities that have seen city government work with their leading arts facilities to purchase real estate assets with excess funds, thereby providing reliable streams of income to fill the gap between programming expenses and revenues: In the case of Cleveland, Ohio's Playhouse Square, that has meant a major hotel and entire blocks of leasable properties in Cleveland's downtown. Other communities such as Schenectady, New York (where Proctor's Theatre owns a majority share in a power - generation plant) and Poughkeepsie, New York (where the Bardavon Opera House has presenting contracts with venues larger than its own in neighboring towns) have similarly buttressed their operations through owning or managing real property. In the case of the Wheeler, its commercial spaces are used solely to generate monies to fund the City's arts grants program, and restrictions in the use of RETT funds remove the ability of the Wheeler to invest in other real estate holdings. The Wheeler's only other workable asset, its $28 million savings account, is limited in its income potential by City of Aspen investment policy, at present generating between .6% - 1% per annum. This only serves to further highlight the Wheeler Opera House's wholly unique situation. Unlike any other not - for - profit theatre known, it conducts no fundraising nor actively seeks corporate sponsorships to support its operations. (Note: According to the minutes of the June 6, 2002, Wheeler Board of Directors retreat, there was direction established to "Create an organizational mechanism and /or vehicle that can encourage private (or other) donations," but apparently nothing came of this.] Quite the opposite, the Wheeler serves as the sole City resource for funding Aspen's arts not - for - profit groups, annually contributing $350,000 through a competitive grant process that also utilizes 100% of the monies derived from its lease spaces. Thus, the typical practices of fundraising, sponsorships, and asset resources to offset the cost of presenting desirable live entertainment are not only absent from the Wheeler's financial profile, what resources the Wheeler does have are used to support programs that do not materially benefit the Wheeler's operation. In the broader view of American theatre, this is antithetical: Intentionally, three of the four resources accessed by performing arts centers across the nation for supporting event programming are not available. This leaves the Real Estate Transfer Tax — by design — as the sole resource for supporting all expenses of the Wheeler that cannot be recovered from ticket sales and fees. The realities of event booking: There is an art to booking live entertainment, and even in the best of times there are bookings that look great on paper but flop in practice. Factor in a four- years -and- counting national recession and the odds of consistent success diminish rapidly. Yet, the alternative for the Wheeler over the past few years would have been to have more nights that were either dark or 'Based on audited financials available through the DCPA website. 2 Information attained from Sheridan Opera House Executive Director Ronnie Palomar and Vilar Center Executive Director Kris Sabel, June 2011. 35 turned over to the Wheeler Film Society, which would not have followed the directive given in 2005 to fill the calendar with attractive live entertainment. Certain performances can be assured money- makers. For example, all of the Wheeler's dates with the Crystal Palace Revue have so far been financially rewarding for both parties. However, these are special situations and cannot be run as a constant attraction — part of the reason for their success is that their "specialness" is maintained by only producing them once or twice a year. The reverse of this is that some performances are booked knowing full -well that even with a sell -out, scaling with affordable ticket prices assures that a substantial loss will be incurred. These "loss leaders" are meant to provide the City of Aspen with marquee attractions that can positively influence a decision to spend time in Aspen for guests or part -time residents, as well as elevate the quality of life experience for full -time Aspenites. In all cases, an understood part of the Wheeler's mission is to ensure that at least some of the audience chamber's seating is affordable to all. Thus, the Wheeler Executive Director's job has been to try to balance the shows that are reasonably assured of creating good income with those that bring great names to Aspen but not great financial returns to the Wheeler Opera House. A reality that the Wheeler grapples with is its physical restrictions. The Wheeler is a 503 -seat venue with a tiny (28' x 28') stage footprint and practically no wing space, depth, or fly space, severely limiting the kinds of events it can responsibly produce, which means it loses opportunities. Its primary presentation media are live music, film /video, and spoken word (including lecture and stand -up comedy). It is a difficult theatre for the production of dance or stage plays and musicals. Another challenge for the Wheeler follows the old baseball maxim of "hit 'em where they ain't" — finding those event types that are not featured by other entities in Aspen or the Roaring Fork Valley. Through the past six years, the greatest challenge to the Wheeler has been from the Belly Up Aspen club, but there also has to be careful consideration given to events promoted by Aspen Skiing Company, the Town of Snowmass Village, Jazz Aspen Snowmass, and the new PAC3 venue in Carbondale. This has led to the Wheeler following a twin -track of uncovering new names for Aspen (Brandi Carlile, The Wailin' Jennys, Chuck Leavell) and shifting into non -music event types (stand -up comedy, documentary films, the Live At The Met HD series, etc.), all of which requires time to become established and secure a regular, recurring audience. Unlike an outdoor venue, or even a modern indoor venue that is specifically built to adapt, the Wheeler has the same number of seats available all the time. The 503 -seat house is of a size that often doesn't reflect the expectation for audience attendance for an event. To program the venue only for shows that are expected to sell to capacity means that there would be far fewer shows in the calendar, and only of a certain kind and price. Thus, physical scalability is an issue that Wheeler staff constantly wrestles with when considering bookings. Fewer than 200 persons in attendance may not create enough volume in the space to make an event feel "successful," yet there are performers and event types (such as Tom Rush and many Bluegrass shows) that may have an expected small draw and still serve a proven constituency of the Aspen /Wheeler community while providing sufficient ticket revenue to meet a simple break -even of covering all direct costs. What is important for a booker at any venue to notice and act upon is a declining audience for an artist or event type. By example, the first Bernadette Peters performance in December 2006 was a high -water mark in the Wheeler's quarter- century of arts presenting (co- produced with The Wheeler Associates), and pointed toward continued success in presenting Broadway artists as the centerpiece of the Wheeler's holiday -week offerings. However, subsequent bookings (including a repeat performance by Peters) did not support this finding and the Wheeler has discontinued pursuit of Broadway names for 36 • now. This has also been the case for such past tried - and -true event types as Celtic, which was tremendously successful fifteen to twenty years ago but no longer sufficiently attracts a following. Festival production: In March 2007, shortly after its event was over, HBO announced that it would no longer be producing the HBO /U.S. Comedy Arts Festival, which had been a cultural centerpiece of the Aspen winter season for thirteen years. Shortly after that, concern was brought to City Council that the void created by HBO's absence would be a blow to Aspen's prestige and entertainment profile, and that effort should be made to replace it with a new entity. The response to this at the time from one City Council member was, "I'm not worried. This is Aspen; something will come in to replace it." However, no event did come forward to replace it, and it looked like Aspen would indeed lose its role in comedy development with a media entity. The Wheeler, which had been working quietly in the background, stepped forward in early 2008 with a new comedy festival that could also be used to stimulate tourism at a time of year (late May /early June) that was underserved. This in brief is how the Wheeler came to re -enter festival production, with the Aspen Rooftop Comedy Festival, produced in partnership with Rooftop Comedy, a San Francisco -based internet provider of comedic content. The Wheeler subsequently developed MountainSummit: Mountainfilm In Aspen in 2009 to create destination product for the end of August, and The 7908 Aspen Songwriters Festival in 2010 in order to fulfill City Council's desire to develop a singer /songwriter festival as part of its "Mining For Ideas" initiative. The positives of festival production include that there is a concentration of effort and resources that allows the programming and marketing approach for one -offs to be applied to multiple performances at a time. While the outward aspects of event production are by nature higher due to this concentration (as many as four shows in a day, resulting in four times the artist /company costs), the "soft costs" of staffing and building resources are working at their optimum efficiency. Advertising and publicity costs are also far more efficient. The negatives of new festival production mostly center on what can be a realistic admission price while seeking to establish an audience willing to attend multiple events in a compacted timeframe. Single tickets, day passes and full festival passes must be attractively priced with enough of a substantial discount, particularly in the early years of a festival, to make the buyer commit to attending multiple events. Incentives should be provided to convert a single- ticket buyer into either a day -pass buyer or a full - festival buyer, once that buyer has experienced the festival and has an appetite Whetted for more. These are the tools that a strong box office staff (and the Wheeler has one of the best) need to up -sell buyers and accelerate the success rate of a festival, but they do mean that with every attendance "success," there is a smaller per -unit return in box office receipts. The goal is always to get the festival established and be able to slowly reduce the discounts associated with passes over time; however, passes will always be the lifeblood of any festival. Festivals also have an unquantifiable factor to them, which is how their uniqueness can be larger than the sum of their parts. They have an allure for outside media that a venue or its single offerings can never have, and this has already been proven with two of the Wheeler's festivals. The 7908 Aspen Songwriters Festival attracted the producers of the new Velocity channel (part of the Discovery Network) sufficiently that they sent a production team for the second 7908 (March /April 2011) and have produced a collection of short pieces that are in regular rotation on the Discovery Channel at present. There is now a deal in the works for a one -hour "Live From 7908" television special for 2012, which is an incredibly meaningful step forward for a festival barely one year old. The brand -new Aspen Laff Festival (which replaced the Aspen Rooftop Comedy Festival in 2011) received live broadcasting on the 37 Sirius /XM "Raw Dog" comedy channel throughout the festival, which is unheard -of coverage for an untried and unknown festival, and discussions are currently underway with Fathom Entertainment (which produces many pay - per -view series, including the Live At The Met In HD series) to co- produce certain or all aspect of the 2012 Aspen Off Festival. Such media coverage typically has a long and lasting ripple effect; while not necessarily immediately promoting Aspen as a destination, this coverage (which is constantly rebroadcast either in whole or in small pieces for many months or longer) creates a number of identity impressions that extend the Aspen brand into tens or hundreds of thousands of households that are predisposed to enjoy what the Wheeler, and by extension Aspen, is offering. FURTHER DISCUSSION, SUMMARY AND FINAL ASSESSMENT Better Understanding The Wheeler RETT: First and foremost, it is vitally important to note that the Wheeler is a self- sufficient entity that does not use any monies from the City of Aspen's general fund. The 0.5% Wheeler Real Estate Transfer Tax (RETT) was originally passed in 1979 (effective January 1, 1980) to provide the financing for the comprehensive renovation of the facility done at that time. The original RETT was intended to have a twenty -year life, expiring on December 31, 1999; however, the public was asked to renew the RETT for an additional twenty -year term through a ballot issue, and the extension was successfully passed (now expiring December 31, 2019). It is important to note that, according to anecdotal information from Aspen realtors (including Wheeler board member Richie Cohen), purchasers of real estate affected with the Wheeler RETT tax have rarely if ever complained about having that small amount added to their property settlement. As Wheeler board member and longtime president Ron Erickson has said, "The Wheeler RETT is a newcomer's entry fee for being a resident of Aspen, and having the Wheeler as a community resource." For most Aspen residents, the Wheeler RETT is a tax that is paid once or twice in a lifetime, and not an annual tax obligation. While periodically the proceeds from the RETT are used for renovation and remodeling projects of all sizes at the Wheeler (the largest being the $2.8 million 2011 remodel of the basement and first floor spaces), the bulk of the RETT monies used since the completion of payment of financing for the 1984 renovation have gone towards supporting maintenance and operations, whether it be the day -to -day costs of the Wheeler or the programs that it presents. Even with such usage for all three allowable expense categories — improvement projects, daily operations and programming, and $100,000 to support arts grant?— the Wheeler has experienced well over a decade of RETT revenue in excess of operating need, generating a savings account of about $28 million. Viewed in the totality of its operation, the Wheeler fund has been and continues to be extremely healthy. Festival Growth And Subsidy Reduction: Despite the considerable success that all of the Wheeler festivals have achieved in quality and patron experience, these are substantial investments of Wheeler funds that cannot generate sufficient monies to cover production expenses, particularly with revenue limited primarily to affordable ticket and pass sales. This means that growth and subsidy reductions for the festivals may need to come from three different paths: Paid attendance increases, outside entity adoption, and offsetting impact to Aspen's retail and hospitality industries. With all three festivals, the first focus is to increase paid attendance, and Wheeler staff believes that this will naturally progress as the festivals establish themselves. Both MountainSummit: Mountainfilm In Aspen and The 7908 Aspen Songwriters Festival saw tremendous 38 upswings in paid attendance between their inaugural and most recent years, cutting their simple subsidies by two- thirds or better (see Appendix D). Wheeler staff expects the same first -to- second -year growth for the Aspen Laff Festival in 2012. While growth may not continue to aggressively cut the subsidy level in succeeding years, there should continue to be a steady upward trend; however, this trend will eventually top out, particularly for a festival such as MountainSummit, which has a ceiling ability to cover costs through ticket sales. Outside entity adoption is a possibility for all of the Wheeler's three festivals. The risks with any adoptive relationship are loss of creative control and corruption of original mission and integrity. For example, many Aspenites have cited how the U.S. Comedy Arts Festival unfortunately morphed from being for a locally -based audience in its initial years to an industry event after being adopted by HBO that largely shut out the locals, particularly for its marquee -name events. One of the most important facilitators for adoption is a strong relationship with a national media entity, and the Wheeler already has this underway with Sirius XM and Fathom Entertainment for the Aspen Laff Festival, and Discovery/Velocity and its affiliate cable networks for the 7908 festival. A growing media presence also helps lower the cost of buying talent, since the trade -off for the artist is greater exposure and the further likelihood of better paydays in their bookings. Wheeler staff believes that its media relationships will only continue to expand and deepen; this is already evidenced through a growing interest level in national media producers and their affiliates. Another element to offset festival costs that the Wheeler would like to explore further is a marketing partnership with the Aspen Skiing Company. With its "Snow Beats" festival no longer in consideration, the Skico may be more interested in tying Wheeler- funded entertainment to selling Aspen as a ski - holiday destination; the Wheeler's ready -made festivals for February (The Aspen Laff Festival) and March (The 7908 Aspen Songwriters Festival) should fit nicely into Skico's marketing planning, and are scheduled to not intrude on its own production calendar. The benefit to the Wheeler would be in having a powerful national marketing partner that can be featuring the Wheeler's festivals all year long. As for the 7908 festival, the Wheeler's relationship with John Oates as executive producer has already netted strong returns in the national market. Through Oates, the 7908 festival now has ties with the Americana Music Association (AMA), and may be part of a further development that AMA is working on with Nissan as a national corporate sponsor, in producing a series of small festival events across .the United States that all come under the umbrella of AMA. The hope is that this larger project will help bring cash in as part of the corporate relationship with Nissan. Equally important, a band of local part- time residents with strong ties to South Florida has taken a pronounced interest in the 7908 festival and wish to create fundraising parties to support it and even are in the beginning stages of founding a 501(c)(3) charitable organization to provide a formal fundraising arm or even play a larger role in ensuring the 7908 festival's future. Councilman Torre has mentioned that the original idea for what became the 7908 festival was to have Aspen serve as a tribal gathering place for singer- songwriters of all kinds, so that there would be music in every venue, bar, and even door stoop during the time of the festival. Wheeler management has developed a Colorado -based singer /songwriter talent search, which ultimately will result in satellite activity in town during the festival at a minimum of three other locations. The start-up expense for such a talent search /songwriting competition will be labor and cost intensive, but may generate enough of an immediate impact to offset that expense through in -state tourist traffic. The Wheeler will establish relationships with regional venues that would be participating partners in promoting this festival 39 element, and to a certain degree, the workload should taper off after the initial year if relationships with a majority of the participating venues can be maintained. The Ripple Effect - Subsidy Offset By Increased Aspen Revenue Generation: If one considers that the Wheeler is the entertainment division of the City of Aspen, then the true measure of its success lies in its ripple effect to tourism and spending in Aspen businesses, the logic being that if the Wheeler's programs lose $1.00 for the Wheeler but make up for it in $1.50 in business for downtown, then the loss may be sufficiently mitigated and offer real benefit to the town. The Wheeler has anecdotal information on the impacts of some of its programming: We know that our first 7908 festival drew visitors from Iowa, Indiana, and Florida who stayed for the entire length of the festival; that Tom Shadyac, the director of / Am which was the centerpiece of the 2010 Mountainsummit festival, spent $12,000 between his visit that August and a subsequent visit during the Christmas holiday; and that our February concert by "Yes" frontman Jon Anderson drew several carloads of patrons from Colorado Springs and Boulder. Surprisingly, there are no measurements used by the U.S. Department of Commerce that organizations like the Wheeler can use to assess their economic impact to their communities. Locally, the Aspen Chamber Resort Association conducts monthly sales data, which cannot break down to measure the kind of daily impact that would be required to better see the effect of Wheeler events on downtown's business community. ACRA did at one time conduct daily sales reports, but has not now for several years; they are considering going back to this kind of data collection to aid the Wheeler and others with this kind of knowledge." One source from existing research is a January 2006 study for the Nashville Chamber of Commerce that seeked to understand the economic impact of the music industry on the overall economy of the city's greater metro area. This is germane to the Wheeler and Aspen because both towns have economies that are largely driven by entertainment in general and music in particular. The study stated "Studies of the economic impacts of music and arts performances and exhibits throughout the country have found that the spending of persons attending these events makes a significant contribution to the economic impact of these industries. Frequently, the off -site spending of entertainment seeking tourists is the largest economic component of the industry being studied. Nashville visitors bring new revenue into the M(etropolitan) S(tatistical) A(rea) through their spending at music - related events and through spending at nearby restaurants, hotels and retail outlets. The circulation of this spending throughout the Nashville MSA increases the disposable income of residents and raises the level of local spending, thus, creating more jobs, income and taxes.i' Similar findings were made in economic studies conducted about this time by the State of Georgia and the cities of Seattle WA, Austin TX (both strong music /entertainment cities), and Memphis TN. The study further found that for every $1 spent on entertainment, an additional $2.16 was spent in the community. It may be fair to say that such an integer could be valued higher in Aspen, with our concentration of residents and guests paying more premium prices for goods 3 According to Kyle Brown, Consumer Spending (Services), U.S. Department of Commerce 4 Conversation with Debbie Braun, Aspen Chamber Resort Association, July 7, 2011. s "The Economic Impact of the Music Industry in the Nashville- Davidson - Murfreesboro MSA," College of Business Administration, Belmont University, Patrick Raines, PhD and LaTanya Brown, PhD, http: / /www.noshvillechamber.com /Libraries /Economic Development Studies /Music Industry Economic Impact_ Study.sflb.ashx 40 and services, especially if they are guests in- season. Using a conservative integer of 2.25 then, for most of the Wheeler's one -off presentations and festivals, there is a greater generation of sales in the Aspen community than there is loss from presenting at the Wheeler. Wheeler staff has done an analysis of the latest iterations of its three distinct festivals through data captured by the Aspen Show Tickets ticketing software, which reveals the following in terms of orders. Please remember that an order can be for one ticket or for multiple tickets. • For the March 2011 Aspen Laff Festival, Wheeler box office records show that there were 310 orders total. Of these, 172 (55 %) were from an Aspen zip code address, 67 (22 %) were from additional Roaring Ford Valley towns, 25 (8 %) were from elsewhere in Colorado, and the remainder (46, or 15 %) from the rest of the United States. • For the March 2011 7908 Aspen Songwriters Festival, two weeks after the Aspen Laff Festival, records show that there were 693 orders total. Of these, 316 (46 %) were from an Aspen zip code address, 191 (28 %) were from additional Roaring Fork Valley towns, 88 (13 %) were from elsewhere in Colorado, and the remainder (98, or 13%) from the rest of the United States. • For the August 2011 MountainSummit: Mountainfilm In Aspen festival, records show that there were 470 orders total. Of these, 267 (57 %) were from an Aspen zip code address, 75 (16 %) were from additional Roaring Fork Valley towns, 32 (7 %) were from elsewhere in Colorado, and the remainder (96, or 20 %) from the rest of the United States. The Wheeler is happy to share some of the responses it has received from downtown merchants: • Keith Goode of Parallel 15 — "The Wheeler increases business. 1 enjoy the trade opportunities. The Wheeler is a complete asset, primarily the festivals. 7908! Awesome!" • Lisa Lemay of Aspen T -Shirt Co — "Of course, the Wheeler brings an array of different people to town. It's not like Food & Wine but we always talk to people and a significant percentage of them are in town for a show at The Wheeler." • Jill Murphy of Misstvx — "7908 was a great festival for us! Whenever there is an event where there are lines or people are waiting for a show to start we see an increase of traffic and sales." ( 1(‘ col 41 NEXT STEPS The October 29, 2005, Aspen Times Weekly featured a cover story on the Wheeler and its new Executive Director. While the article itself was titled "What's Next For The Wheeler ? ", the cover featured a picture of a man moving the Wheeler structure on a handcart with the caption "Where Do You Want This Thing ?" That was an apt description then, and possibly is again. Where indeed do "we" want this thing? Do we want the Wheeler to be an all- serving public asset that is as unique in the national community as it is to the local one? Shall we maintain that profile while finding ways to introduce "more legs of the stool," to help subsidize the Wheeler's matchless array of live and film performances? It is time to identify programs, large and small, that should be reduced or eliminated in the face of changing public tastes and attendant underwriting costs? In keeping with the 2011 -2012 City Council goal for the Wheeler ( "Design operational guidelines for Wheeler Opera House around subsidy levels, programming levels, community service, etc. "), Wheeler staff and board would note and suggest for discussion the following: • The Wheeler has been a "cultural ark" throughout the four -plus years of the national recession in maintaining Aspen's profile as one of the leading cultural communities in the nation, even when maintaining that profile has meant unusual subsidy levels for self - produced or self - promoted events, as well as significant financial assistance to non - Wheeler entities engaged in producing other arts events that also meet a high standard. Recent trends indicate that these steep subsidies for Wheeler- produced events are abating, even while certain Aspen arts entities continue to struggle. Shall the Wheeler continue to strategically invest in arts events and entities that maintain this year -round profile for Aspen? • The Wheeler has long foregone active fundraising and other non - ticket, meaningful funding initiatives, in order to not compete unduly with Aspen's not - for - profit arts organizations. This has limited the ultimate underwriting of the Wheeler's many programs, especially its presenting program, to the Wheeler RETT. Shall the Wheeler begin to strategically solicit outside funding sources, such as charitable donations, sponsorships, and independent underwriting organizations, in order to better support and limit the amount of subsidy for its self - produced and self - presented events? • For many years, the direction from City Council has been to maintain programs at the Wheeler, such as Community Events and the Wheeler Film Society screenings, which require a significant amount of soft- and hard -cost subsidy. Shall programs that offer limited to no ability to reasonably recover their operating costs continue as part of the Wheeler's programming profile? • Rental rates for users of the Wheeler have been maintained at a very conservative level for many years, in order to attract and maintain for - profit and not- for - profit events at the facility. Even with these conservative rates, many users find their cost of presenting at the venue challenging, while Wheeler staff recognizes that it is not receiving a full recovery of its investment into these non - Wheeler- produced events. Shall the rental structure and /or rates for the Wheeler be adjusted in order to better limit the subsidy required to serve at a publicly - available rental venue? 42 • The Wheeler's concessions bar for many years has been intentionally determined to be "the cheapest bar in Aspen," in order to serve the greatest amount of the event -going public at an affordable rate. Steps are being taken to adjust the product mix and sales strategy to better bridge the subsidy between soft- and hard -costs and available revenue, but the affordability of the bar remains a central concern for Wheeler staff. Shall the Concessions program of the Wheeler be adjusted to generate significantly more revenue, even at the cost of affordability? • The Wheeler's Aspen Show Tickets box office operation is a major and affordable resource for the Roaring Fork Valley's many event - producing entities, servicing a larger event -going public outside of the Wheeler then inside it; however, the human resources investment is significant and by its nature does not allow the Wheeler to recover all of its soft- and hand -cost investment in assisting in the smooth operation of these events at the rates currently established, even as these same rates often challenge users to make their events financially successful. Shall the Wheeler rates for box office services be adjusted in order to better limit the subsidy required to serve as a ticketing resource for Aspen and the Roaring Fork Valley? • Throughout the year, the Wheeler serves as a welcoming entity for many activities that are outside of the scope of theatre -event production. Its status as one of Aspen's oldest and most - cherished historic structures requires a significant amount of investment in maintaining its historic exterior and interior elements, as well as being available as a gallery, meeting space, and visitors center as much as 360 days per year. What steps might be taken in order to better afford the significant investment of staff and financial resources required to maintain the historic and public- amenity programs of the Wheeler? • The revenue generated from the Wheeler's two commercially- driven lease spaces is the largest single source for maintaining the City's arts grants program, but revenue from the leases after the 2011 remodel is likely to prove to not support this program at the level that it did in the past. As well, 100% of these funds are transferred out to support the arts grants program and no funds are presently retained by the Wheeler in order to offset hard- and soft -costs associated with maintaining these lease spaces, let alone supporting the operations or other programs of the Wheeler. What adjustment, if any, should be adopted to allow the Wheeler to better benefit and /or reduce its subsidy for its Lease and Arts Grants programs? • The 2005 Genovese Vanderhoof organizational audit of the Wheeler suggested reducing the Wheeler's profile to that of a rental hall only, with a small expense line maintained for co- promoting a limited number of events with other arts entities; however, City Council at that time felt that the Wheeler should aggressively pursue a live events schedule after some years of reduced live activity and an overabundance of Wheeler Film Society screenings. Since late 2005, Wheeler staff has fulfilled this request, to the point that there are now very few dark nights in the calendar. As well, the apparent abatement of the national recession is now allowing Aspen arts entities to re- emerge as viable co- presenters, with the early months of 2012 promising the 43 greatest amount of co- presented events since 2007. What direction shall City Council give Wheeler staff in terms of programming mix, to include self - presented and co- presented events, as well as calendar fulfillment? CONCLUSION The Wheeler Opera House has been a powerful arts entity for the Aspen community since coming back to life in the spring of 1984, with a great deal of its success tied to the financial support supplied by the Wheeler Real Estate Transfer Tax. Ultimately, the Wheeler RETT funds are extremely limited in what they can be used for, and with the possibility of using most of the savings account on an expansion project that is on hold for at least the immediate future, a case can be made for harnessing these funds for the producing of events that will continue to make Aspen America's stand -out mountain resort destination. It is important to note that the Wheeler's savings account has, with the exception of the 2011 when it funded the 52.9 million basement /lease spaces remodel, seen at least six figures of funds added to it annually throughout the last decade -plus, even during 2008, largely considered the most impactful year of the national recession. With that said, it continues to be the goal of Wheeler staff to find greater operating efficiencies for all of its programming while not experiencing a concomitant drop in quality. Wheeler staff remains acutely aware that it is using public tax dollars for every bit of spending associated with the facility, and that it is obliged to expend all monies as intelligently as possible through both good times and bad. Ultimately, Wheeler staff and board of directors feel that most of the Wheeler's twelve programs are solidly worthy, if at times challenging to unlock and understand. Wheeler staff and board remain dedicated to the idea of providing the greatest benefit to the community at the least reasonable cost, both as a cost to those who are paying entities presenting or enjoying events at the Wheeler, or to the Wheeler itself in terms of hard- and soft-cost expense. May 2012 will mark the 28 anniversary of the Wheeler's reopening. In less than three' decades the Wheeler has gone from being so strapped for cash that it could not afford its own productions, to being a producing entity that helps to drive Aspen's world- renown cultural profile and even serves as one of the largest (and in some years, the largest) single funder of the arts in all of Colorado. Still, change and new direction can be refreshing, and discussion is always welcome and productive. We look forward to working with City Council shortly on the future of this wholly unique venue. 44 45 APPENDICES APPENDIX A: Full Pricing Committee exercise sheets, including support sheets that demonstrate specific staff and non -cash resource investment per program APPENDIX B: Wheeler Presenting — One -Off Event History (Six Year Sequential History) APPENDIX C: Wheeler Presenting — One -Off Event History (Divided By Fee Tiering) APPENDIX D: Wheeler Festivals APPENDIX E: Wheeler Opera House Organizational Audit, July 7, 2005, Genovese Vanderhoof & Associates (Final Draft) APPENDIX F: Ordinance No. 11, Series of 2008 ( "Definition Of Maintenance, Wheeler Opera House ") 46 47 ri APPENDIX A: FULL PRICING COMMITTEE EXERCISE SHEETS 48 APPENDIX B, C and D: WHEELER PRESENTING ONE -OFF HISTORY (SIX YEAR SEQUENTIAL and BY FEE TIERING) And WHEELER FESTIVALS 50 • 51 APPENDIX E: WHEELER OPERA HOUSE ORGANIZATIONAL AUDIT (July 7, 2005) GENOVESE VANDERHOOF & ASSOCIATES 52 • • • 53 re mil APPENDIX F: ORDINANCE 11, SERIES OF 2008 ( "DEFINITION OF MAINTENANCE, WHEELER OPERA HOUSE ") 54 • a, w U +31 0 O 0 M ° ti O O N V na a m 0 0 0 V N N , n ti N A r M el CO +/Y an t o in an. 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Q Cr_ U d v t N c 0 3 £ O O m. «' c b ° O W cc z w a N ` t- z o a. y A v v Z o v v oo 0 , a • a N ] N Z O .4 y , N N w W jp ›, `O \ a m N a ~a , N b J W p 0 0 C m C a_+ 0 U U o w O o U. o o a. 0 0 7 0 = 0 c ` , v o a ' - o 0 0 0 0 O. u. i= N I- O F- 6 0 -. a z O U F- a i- at It a. a. er U u.e h H ti = ca • 2011 2012 Revenues $279,000 $378,900 Expenses $1,260,030 $1,249,840 Presenting $1,400,000 $0.00 $1,200,000 ($10.00) — $1,000,000 ($20.00) $800,000 ($30.00) — ■ Revenues $600,000 ($40.00) • Expenses ($50.00) $400,000 ($60.00) — $200,000 $0 2011 2012 2011 2012 Per User ($49.05) ($37.87) Subsidy Per User so ($2,000) ($4,000) ($6,000) ($8,000) ($10,000) ($12,000) ($14,000) ($16,000) ($18,000) 2011 2012 Per Event ($16,351) ($12,808) Subsidy Per Event a m 4 c A O O 0 000 C to C -ul. v i i. tn. I^. h V N N N n 1 N H c H , 5. C. t"' b y y -v., O N N a w I I C1' _ N 3 p p M Opt p N N ery p N • 4, 0000 viviini.io. V 2M "i M • O' O. 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O w C7 a 2 0 u F- 1A 1- ai # a a K V v v1 v1 > O n 2011 2012 Revenues $0 $0 Expenses $165,860 $170,070 Community Events $180,000 $160,000 $140,000 $120,000 $100,000 ■ Revenues $80,000 • Expenses $60,000 $40,000 $20,000 $0 2011 2012 C 1 m C A O O m - � - 0 0 0 0 0 0 0 s 0 0 n ,,"I ° m o C .- 14 CO al to iA if? il} if? H N VI. Q . 11. V . el; � N en y x QC W _ 1 O N O O O CV N N • j • O O O C - a d pi ~ b H 1 D Q --i C M In • Q 01 Q, '" N V} L6. �!1 QJ X ,..1 N q.p ..4 O O O b H M ` K 0 0 0. y i 1 O1 O D o o a 0 0 0 ° 0 0 0 O V O O O Q u1 M O O 1 w Q, vl Q Ln 0) - N u1 pc C. It ri O 1,, ^ Ln r ry J "' "* W 0 • 0 0 0 0 i 0 V) i n 4 0J CU = p 0 C p C O R O ION C N O 1+1 M N 01 0, I- Ln Ln O O O d IN 0 0 u1 O M O h1 u1 N* N C Q, s -� N N t/? to LC; x ry N 44 .y ce 1 .4 O = Q b H l ` 11 C _ I . 1 1 J I NM — 1 o O * o* O O .+ 7t; On O .. o ff° O O O O E cu ,,; y ui "i o o y a 7 7 I ' O V u a CD O N i C A D O O ° ui rn 01 U1 I N `^ • 1 N , an 11'1 ad Qc c 0 Cu u I in O Q, tn C Q, x c Q, CU a v v �' W o ao M E . ID C O CO L CC ■r O W v 73 . U O a M 0 O N w v, C ; O N L d H C N in a O C O O 7 W C LL L .L Q, N j 0 01 01 07 �+ j 1 /) , r.+ L 0 O, CU 3 Q, O. U LL C . IY V, W N O C V t/1 L H j j 2 f6 Q .� r • a Cu aJ ar 4. .c 4 .1 r O .. a . .1 . u a n W Q, W a, o •••• o x a o o a o n o Q, v Q, o R o 3 c a N U ti O 1- W k7 C 2 0 U I- N I- s= �x C Q cc U V U 2011 2012 Revenues $5,000 $5,000 Expenses $103,210 $106,220 Wheeler Film Society $120,000 $100,000 $80,000 $60,000 • Revenues • Expenses $40,000 $20,000 $0 2011 2012 o O m * aF w al to • Q 0 O p 0 u co N N CO b co N a V n N ^ to n "1 I" ,..j` 01 N r N 0 M N j ` "I 1-1 C. I ' H N V ` it 0 V? An. {f! x C. W = 0 0 0 O C: �p C o , n O n * 41 WC G! tD . -. is N d 00 M a ti 0 w 0. A 4 v1 a '? t0 v1 O 0. 0 � _ a o e. Y. acs; v acs d It ry : 1.4 v N V a o u o I 1 i 1 1 I. 1 1 II ,__ l 1 I o, o 8 c o m c m a a cs !O� oj S 0§ O a c i o o M O a � _ N NT 3 W I a R X kp �•1 vj l ij R N Q Q O N �' •V , VI. ec .1". a W h v, . in V tn. ak 1.4 g o o 0 as 0 0 m c �' '1 � co � o u u O - M l0 y O p `^ � v oo vi t0 pi` N 1". I i 4 v E on v -o a t v) >. H E. of ai O O 0 a, a O a E 11 O N > d d p Oi w v, N O O 1 N o a o o o 0 o a o o a o O v v o a a o v u re v) O 1- W 0; o, 2 0 u a , a,c v v u 2011 2012 Revenues $48,000 $65,000 Expenses $93,490 $95,770 Concessions $120,000 $100,000 $80,000 $60,000 • Revenues • Expenses $40,000 $20,000 $0 2011 2012 ✓ a, en c y .t o 0 0 0 0 o p p o s CO b so b ea a 0 at A N N co a U to to V! v1 N v! V1 V? +A u 01 .y* H M N L M M N N 5. o. 'A -tn. + n an u .� a W 1 1 I I M v O, ° 0 o N. n m , ° om m o o up v a N v. rn COO p a a n ° c M °e e, Lei n a c ,4 ‘.4. 0p 00 co K N r H V? O O 01 t " 4 N CL in. G L a co 0 e o > 0 a. \ o 0 o v, ° > �00 0 v V •-, 0 • 0 0 0 0N 0 0 co o �M .� 1 p 01 N O 0 n L A p1 H 01 h H at I C. " " C ° ° l o 000 ,G O O 0 0 0 0 0 0 O' aR I 11 a . N O O O t° O tej p • O p O 0� O cz C N 0 .-4 41 R N^§ 41 N p 3 • t.0 .4. rn m o o t o y M M at p O M us kli 1 � d c * I v ''' It o v C e O O P p 3 1E W N O o v 3 7 u u l0 O - 01 n M v 1 G O H . /1 +R '.' D CO ‘. Co U �' • R i+ N LL a te . u VI 0 7 W 0 N co a Oc Q o ,N N d N c" eS i CO .I.., L ,o O N C p C E O O E a. Cl 3 cc co 7 W 4' h 01 •E i+ U V1 l N N N O O f6 C N J Gl L C > p v r`" H Cl b W O a w ti C ▪ S N u L ca w Z ca 4, O O 0. M O N 0 L L U v1 C E Ili a °1 e v) I- W 1 .6... f L 0 4 ° T o u F V F tt * a a a v ° v cu 2011 2012 Revenues $8,690 $8,690 Expenses $101,460 $104,430 AM FS $120,000 $100,000 $80,000 $60,000 • Revenues • Expenses $40,000 $20,000 $0 2011 2012 • a, a, en 40 O a 0 0 ui o n N. ' c ° Qp o 0 0 °m c n N. { 00 lD O N O O O t0 q U tp dO co 01 .-1 Np 01 7, V u j N -1 .1 co V? V} ^ iA r\ O? h M � N. t0 t O 0 Ni r N C ,-1 v? an in .� p, +n 'rA IA. V? u ... y CC ILI v a, O 'O •-... i 3 Ol O O O O O O C a0 00 M H a C 00 '- .O d N n V '0' O O oO pq O L N tel N ,r 06 r» V1 NI - to i. N N N 0 cr N M a . O o, C1 ` rry to -0 CC �* v? A. am* 411. 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V= ti 2011 2012 Revenues $104,430 $122,100 Expenses $211,820 $217,950 Aspen Show Tickets - Outside Events $250,000 ($95) ($100) $200,000 ($105) $150,000 ($110) • Revenues ($115) $100,000 • Expenses ($120) $50,000 ($125) $0 2011 2012 2011 2012 Per Event ($122) ($107) Subsidy Per Event • i m 01 I a on u t In o u L O O N 2 Y1 N �_ h N N v m t N N O N 5 K �/► In N u I O/ W cc _ I 1 III 1;il • e o n o -a O N • o O O -0 ID O � �0 b N M O a o to al of . M 4/..• H x O O� • 1 o- O a M ` V1. CC O . W . •t . .co. 1//1 O In a 1 . * ° o 0 u ,,, " o 0 N I • —. i c. `^ rn o, rn W to e o O u o • III • • III 1. C 0 0 O I P ! ; N L! M 3 M V} u . �. CU off \ -+ oe O O 1 "S a+ 7t C * 0 0 0 O N Q O O 2./ ` .-i h O O 1 N Y u u 1 M It LO m'O � v ° o ° ° o 0 1 1 i N a Q) A Q h Ln dt G � n E Q 0 '^ N a v v • > > N O O CZ W 9 > L CU O d N 3 • v N Q W 0.1 N y L. t t 0 T �' O C O u C U ; in C w u 'O V1 y o, X o 12 v V C v O o C '', W N O N O 4 b 3 v o o o 0 0 a n a o 3 :c a z u u ° v ° Z m v v • a la. 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IA 1 !l '-. , AAA_ i {[ �[ r n � [`[ 3 E €a ads g� 1 . !. 5 _ -. a I A "ai ii A i A i _ , ��� ig 5 ... ' ii � IiIHN i ��i i . - ,Iii 111 �� 5 - ������ �������� ILI i , I�Ellliiii`iinii`i i . � ii`iii iiii`ii Ghiiiiiii gill iiiiiii`iiiiiiiii`ii iiif�iiiiiiiifiiii iiliii``iiiiiiiiiilil 1 ! EEII1 €LEES €EEEEEEN n .: EEEEE 5 ... 1 111111E €€ € € € €€ €n.uL EE I €€ u I... € € €MEEIB f � ,....,. �� Et €1.€L € €€ €EEL �. ' i1 1g11 !� F • I : i €— - °s t € ! 5 d1� 1 I la i'i ai !li! !. .: € a 1 .1 1 I _ i 4 i1 £1l!ld k il .1 i F6sl 1 1 .i I. it Ili :[ i • • Gram $106,995 33.0% $35,308 Heather $61,339 33.0% $20,242 Lauren $56,950 33.0% $18,794 Denise $42,952 33.0% $14,174 Gordon $62,691 40.0% $25,076 Brad $62,691 40.0% $25,076 Siz $47,237 33.0% $15,588 Maria $42,058 33.0% $13,879 Jeanne $48,600 33.0% $16,038 $184,176 x 3 years $552,528 - festivals $442,022 / 68 total evts $6,500 • ONE-OFF EVENT HISTORY - WHEELER OPERA HOUSE _ ---- '- DMd46 By Fr History () Trap _ 11711) _ - - - APpor. _ _ Grant, Add! Ttl Fn refit . EH T6 - Gross ,Prambad TOTAL Tech r 1 1 CeAo Promo Ttl TOTAL GAIN OR S(nlote Staff Ayua%tl Sub&MYNnif Coal • Event TYPO ANWCe I BXO Income REVENUE Labor EXDOnS0 51 Publicity Off. EXPENSES ILOSS) S bsidyNnet Eapervw Gr1 BY Program RICOVrY Owls Mb TOY 141440 Few LOOK/ TIO 000 - - OO4MBraflp/9 WOH 213_ 57.160 $0 $7,160 $179 $8479 W 53 000 . $149 $11.807 1$4,647) 1$21811,_ 56500 ($11,1 (}52.33 38.I% S .,,. Co-Pro 200. $5430 $1,000 $6.430 $309 $858 6.045 $3.000 $288 $9,500 153.0701 ($2.651 $6500 (57.9581 ($16.20) 63,2% Cross Canadian Rarer ' Co-Pr6., 341 $4.258_ 63 50 34.258 $471 51 $2.387 53.000 5217 $7158 1$2.902) ($15351 $8,500 _ (59570) ($47.851 403% Raiboeo Earth/HMS Co-Pro . _ 229 $2.800. _5 $2.800 S879 51,467 s1.513 53000 5246 5 7106 ($4.305) (Se 511 $6,500 _ 39 ($27 31.2% Second Car Touring Co WOM _ 339 56.735._50 $8,735 5167 55814 50 53.000 $198 $9,179 (14441 15,880) 36 (110,903) 347,131 20.8% Damn Wnisht - _ Co-Pro 80 5540, $0 $640 5144 5819 50 $3000 $133 34,096 ($3.2581 (1 56.50 156944) (520.48) • 56.44 Michael Fran() Co -Pro 505 $12100 50 512.100 5172 $3.133 $6 53.000 $163 $12.884 117841 ($40.7011 58,500 49.166, (312795) 7.0% 8'wav Player. Go 8 41 e d Co-Pro 252 1 53.390. $3.390 5386 51 72 $2550 1,000 $144 $8.234 ($2.6441 15155) $6,500 ($7,284) (314.42) 52.4% Ira Shore Go Pro _ 56 $1.400 - - $ $1.400 886 515 $380 53.000 3123 $3.802 ($22021 1111.25)� 36.500 (19,344) 153708) 26 .5'5 CM Haman W O H 193 $4 513, _ 50 $4,575 5297 $5.076 50 $3.000 $148 $8.522 153947) 1539.331 • -. $6,500 ($6702) (515.40) 13 ECwin McCai'Maia Shary W O H I ' 157. $4960: $ 31,050 54 289 57 $4, $[,_53000 $12O $784 153.798) 1$20 451 56600 ($15441) ($54.13) 30.5% Jeff Dan,ela WOH1 226_ 54_050 SO $4,060 5392 $4.001. - SOS 53.000. 5150 $7.543 153483) (519.27) . _ 58,500 _ ($10,2981 0227) 282% (be And Become (21 Co-Pro 381 $4,431 . 5173 $3.113 $t258 1515.461 __ 56500 0.90.11, I$4422) 268% LYneMne W O H 215 56.725 . 50 $6.725 5281 56620 501 $3,000 5151 $10,052 1533271 53.30 46500 _ 02421 (313.76) 458% John Steam Sos WOH 294 $8.720 $O $6.720 $314 56,007._ $0__$3.00 $176 36499 (51,779) (58,05) $6500 ($82791. ($2616) 44.8% Tan R.th w Ora KD3 Co-Pro 238 53975, 50 W O H 225 $5.375 SO 55.375 $323 32,122_ SO _ 13.000 $161 55,606 l$2311 (51.00) 96500 (67311 ($2992) 444% -- 594 $3.000, $203 36.743 ($2.7881 1510.'; 35600 39,2881 1$38.781 309% Cathy $4.900 940 $256 5 $556 $ 19 44 _ 51 er Ewa 13lu e(2)l9 { � Co-P 175 53640 59 1.058, 533$7 $3.000 96 3,338 ($2.3581 1526.403 $5,500 310.1511 $ ,132.'381 30,7% star W (21 Co- 129, $940 $C 3, s0 $ 1 $ 910 $523 $2 f0, 53.000. 596 $3.237 (3.2371 138. $6,500 I��). ( 9.8% tyre n ,ca can Smaller W 0 H 258 51740, 36,040 $528 $2 SG 00 53.000 5108 $4.312 15$7,2721 1529 I $5.503_ 159.73 $54.541 _ 2,4% & InTM OwaI OX 277 6.240 50 $6740 $ $9889 $03000, 5173 $ 184.7931 1 59500 1$141&293)_ 1154541E 359% - xV15K $ w0H 277 78.230 • 55 $52 $69 1 5 60 1660 5 7516 15329)1 53.000 $173 $11,043 1543 144.]691 1517.E 56500 15112931. 440 771 36.8% J1r__am11 E6w% WOH 150 53,150 = 50 $3,150 5255 52619 SOI 53000 5165 88.039 (828801 (518.261 565x1 159389) ($62581 25.1% PM. MeV% 2W194 Sm4 b, Co-Pre 191 31.3e6 W 51]516 6766 5345 $2.531 $3000 5181 5682 364391 (528.47) $6500. (511939) 158251) 109% ) Miro At The Wheal Co-Pro 207 $5.721 $0 $ 721 5749 $254 51 83000 51 22 $5.308 $415 $2.01 $6500, 38065), , 1$294O) 418% [Anton Sheik W 0 H 190 54200 50 34,200 $653 57,395 $0 13,000, $229 $11.277 157.0771 (537. - 76,500, 3135771 _1$71 • ' 238% Pater Saoal WOO _ 238 $5 SO $5378 3110 $4655, 50_335p0p 1146 17.911 ($2.533) IS1),041 1500 _0,033), 1$371' 37,3% EwN Suoorstala_ Co-Pro 257 571 50 17.110 $887 57.944 1$708), S o-� _ $218 $11,344 ($4.2341 ($164 $$30 1 5 310.734) ($41, 39.5% line Creek Chtlatmtm _ W O H 314 X536, $0 34,536 $1.349 $4.859 55, 53.000 $278 59,466 ($495 315.: • 500 .- 1011.4501 _ - 4 284% Chk. o CM Loons W O H 151 $ _ 50 11.341 $521 51.371 55 $3.000 5135 314.341 3.0011 118 1 1 18.5 14.501) _ t 3 12.4% 14.8% Bar Sm4hs 8503 Book_ C -Pro 181 $1,340 SO 11.340 5521, 71 f0 _ $ 3.000 4 8169 44.311 /53.00 (515 CJaoH11 C )N W0H 219 $17,278 50 597.277 $301 59258 SO 53.000 $238 910.387 152.060) (3902 '- 500 =2 520% Tom P sh Nals0 Ta0k9 5kr G W 0 H 144 53,275 50 97.277 5308 56312'_ 53000 5138 515.332 1 411.041! 7 -.500 99 �-� 49214 :'' ) 25.6% Tan R n W O M 144 53275 90 $3276 5375. $21231 50 53.000 516 35664 1 $2.351) (517.761. 365001 (19.857) - • o MMood. ..-_ W O II 130 53.306 $0 1.306 5375 54123 53.000 5186 6 52,803 34,3781 (531 561 .6001 ( 599 1 2 3 , 3% John Oar 1, 4 E4 183 W 0 5 2227 54.104 56.433 580,537 5350 SO 39340( 50 53.000. 00 5160 512.850 (52.313) (310 41) - $8503 _ _ (9681 545% Jots 069 Piaix113_ WOH 224 33512 56.433 $9.035 5350, $9726; 1 . 53.000 5)62 313.2 (53.315) 1514 BO) 7 8800 (3955 50318 Md.o M _Nall 8 Duo( Anger W O H 92 51525 50 11,525 533] 36131 $0 13.000 9129 59.594 ($6,000) 117 71) 56500 L 14 9.5% WPA W 09 i 106 51.425 50 91,425 5267 1667 50 53000 5121 97254 ($5,8291 (95199), 500 512 " 31( le d 10.418 Ul WOH 307 $4 4751 50 34.476 5359 54,587 50 53.000_ 6188 58.131 ($16571 101181 1 5001 51 71 t] 57.9% Crvat PoPme PIaw4 Ca-Pro o 512 280 90 512260 5147, 52.651 54.226 _ 53.000 22 51.010 111.034 518 1 1 1 Second City Nail ] !I Co. WOH 387 59628 - 30 19.828 5300 $6.945 50 53.050 9216 910,481 (56331 1132241 ' 3715021 ($73.84 15818 Pastor M792.r6507) Band W 0H 157 52.175 10 52,175 9367_ 93.677 60 53000 5193 97.237 11.062) (64171(, - 1$11 /,133)_ (977.23) 29.118 Farr Clark/Rodney Fa W 0 H 183. $5,810 1 55,810 $239 99.975 90 53.000 5179 513.443 117.633) (622.121.: 98 500 159.9951 15832 20_3% Ba0OO W 0 H 1 58 52538 , 50 52,538 528 1 $3978 5122' 1 3 $2.564. S0 53.000 5152 12.324 9190 (892.161 56500, SO 53.000 5176 1.933 ($3.495) 6054. , 1 _ 500, _____19.3101. (917.52) 50 NixJev Oida 601 %666 WOH 354 53,976 - .024, - (114 15101 93) 21.2% Oren Bb 5a W O M 142 _1.978 30 1.97 5657 36.426 50 53.000 5153 312230 (12981 52 02 55500 __j55 511.751 58.5% C4n0al Palace Revue Co -Pro 472 , _3129 50 912,075 512.075 5171 57,754, $0, 53.000 5197 $11,122 5963 52.02 1.500, _ 155.5471 _ Pal Mustard ( 1511.77) 805% p 1, 000 5213 1.732 (38,0421 (5104.16) 56500; 3125421 . 1521823) 53% Legere of the arom600111 ac W 0 H l WOH 58 5590 33 $ 50 5 54 55 4 5890 1404 58 $413 _ 1.055. 1392 901 1.000) St O7 1.912 (58.4551 15195591. 56500 312955) 1192.55) 31% Bock89o7Cemo Co-Pro 196 52148 10 52,146 5490 , - - l $24, 51.175 1.000: 5107 54.196 (92.850) 1113521 1930' 0150) 1546581 190% 900166 K3, 04-059 174 51554 50 37554 5343 5777 50 93.000 5116 54,236 152682) 1515411, 96500_ 159.182)_ ($32_77) 14.5% m "I A rueenno W 0H 311 53536 50 1.5 50 1 SO 53000 573 1,073 6465 1150 56500, 1560351. (519.40) 37018 Crystal Pare Revue W 0 H_ ; 493 514375 SO 114,375 5206 1222. 50 53 000 51.402 912.832 11.543 53 , 56500 154.9`'7) _ 38 74 % John Gaka 030) 0X __. 174 52.6 1 29 50 $2.628 5403_52917 SO 93000 5148 1,465 (1,840) (522 1500. (110340) (93942) 20,315 • Maury O'Connell 0 139 53548 50 ,548 532 55.962 - __ . S0 93000 5215 59,522 (1,974) ($42.561 56500. co (5)24741. (989.74)1 22.1% Send CM Won 285 $6.636 90 95638 3269 _ 1660. 50 1.006 5227 99.956 (53.3201 (511.851.. 56500, 159.8201 1534 4611 40.318 Janws Hunter WON 233 92.128, 1 82.128 9350 $8.381, SO 1000 5376 511907 159.779) (541.971 96.500, 1516.279) - (9 11.616 The Wale) Jmnvs Co -Pro_ 236 55050 SO $5,550 5348 56.386, S0 53.000 5254 59.988 (54,938) 132092). 56500, 311438) (548.47) 30.6% J58N, Oat - - 8228086)Mae - W0H 429 95733 30 95,733 5552 55.220 $0 53000 5154 18.928 (1.1931 (97 441 . 1,500, (596931' 1322801 37.2% L ouden Wernvnghl III W O _ X 115 51 781 1 f0 $1701 5238, 35.2_94, 50 , 53900 5110 1 .94 .643 1962) (59036) 58.500 - _1511.)___14211_ _951:___18 11.216 81608998 Total 11 5284.1811 i - 1 - - 13214443) (515.16) 186.606 13 (541.651_ 367% -th orn )17th ToM/Tele&Foos 310 00 •520.00 . • Porn Earl Men L7)°- . 497' 513.545' 50 513.545 5314 54.099 57,318_ ,3.000 9173 914,933 1513851 5186 - 96.500_ (1565) (911 77.3% Cowboy Ja Cairo 509` 516940 1 918.940 5754 5]636 56.074 1,800 138 518.005 1935 (53.561 36.500, 11,276). ($16581; 71,718 Judy Colin 00-Pr8 • - 499 521010_ SO 521.010 9603 58607 510.329 5247 522.786 (51.776) 157891_- 1500 389201 1528.96), 52.718 Harr MacMarr 03-570 308 59955 50 1,955 9648 59.195 (56411 53.000 5173 512,375 (52.4201 5190 96.500 (18781 (51111)i 73.7% UByameh Black 60458609 W oil 433 515.939 60 915 938 3330 S11.619 50 33.000 5167 515.118 122 137 03), 56.500 (99.193) 15240011 57216 8 Da B anner W 0 IC 363 512.320 SO 912.320 9359 511.502 50 53 000 9153 515013 (52.693) 193 47), 56.500 (575681, (51997), 66216 6166,. La J090. Co-Pro. 394 516 650 90 516560 5511 910.344 34200 53.000 9163 516.218 (51.368) 53.04, 56.530 (54977) (59 93)1 76116 Robed Earl Keen Co-Pro 501 918.635 50 918.835 5539 58105 55696 1000 5172 517,312 91.523 (51706), 56.500 (511 .903) 437 57) 50.6% 201111 Ruud( 02-5r0 317 912210 90 912.210 5303 916.154 (52043) 1.000 5205 917616 114091 111706), 1.500 1511,909) 1537571' 60.6% Marc Cohn Co-Pro 469 518225 50 518.225 9588 57950 56.034 53000 3185 317.757 5468 5100 66500 (1.0321 (312861 75.1% Jane Mon.( 22-170 271 57610 50 97.810 6518 910,111 (614721 53003 5151 512.307 34.497) 751859111 1500 1110.9971 (540581 41516 Wan Wad Dont r4( Me 0309 501 518.675 50 516,676 5634 518.404 50 53000 9235 522273 (1.588) 1571811 56.500. (510.098), (920 1611 84.9% Ka155 Mattes Co-Pro 326 514 175 $0 514,175 5701 512.962 50 93.000_ 5213 516.676 (52.701) (50291 - 6$ 5 (59.201) 1528 22)1 60616 Roban Earl Keen 50-90 489 517995 50 317985 5559 $1 529 512.429 53000 1197 517.713 5282 50.58 , 56500 ($6218) 1312'2) 713% 6 in The Skv W 0 N 273 57283 SO 97,21 5252 510864 50 1000 5174 514,390 (57.1071 526.03) 38.500 1513.607) (54984) 34956 Brenner 501e081 W 01) 304 57.041 SO 97041 5382 512.041 50 53.000, 5171 115594 (1.553) 928 13) 1.500 (515.0531 (54952) 3 1916 1 Leahy 54-614 . 158 $4.130 50 $4,130 5 510.122 1333401 53000 5206 510,657 (98.5271 541.31)1 59500, (913,027) (582 45) 24118 Brenner Sera 95 W0N 304 56.636. 50 1636 _8412, 512489 50 53.000 _5173 916.075 (1.2371 53039)L 566.500 315,737)' 111771 30316 Brenner Senn 83 W 0 H 355 98.433, 50 1.433 7350. 512.053 50 53.000 3238 515,641 (97,208) 520.13) 36.500 31371311 (539 291' 93.1% On Mont 01 Queen _ W 0 M • 361 313.125. SO 513,125 53,170 510.694 50 1 56 .000 5247 $15.110 (91 5) (1.50) I 55500; (9 .4951 _ (523 50) 60.7% Best of Wh21'. So Fl4Yy_ W00 250 97035. 50 57035 5367_ 114.911 1. 1 1 000 9187 518.4 1511430) 64082156500 317,930) ($64 03) 211216 44be H0 Earl Keen Co-Pro 500 556620, 50 518820 0 610306 54581 91000, 5305 518.292 5528 9108 W 1500 ($972), (511&0)_759% Jots Oats Proles 91 W O H _ 335 98.705, 56 433 515138 X300_ 510.590 50 53000 5200 914590 51.048 53 13 96500, (654521 _ 1516.] 7356 4 016e. 50-5r0 279 110,665, 50 510865 5735 510.669 SO 53.000 5219 514.623 193.9581 514 191 1`500, 310.4581 (17.19 505% 5,6 405414 _ 06 , 210 517.895_ 50 514355 92 516,406 90 1 5242 519,161 (1701 411 021 1500; (310.470), 330.11 584% 07and Carle: 0 H 503_ 57.895 50 12677 51)7 51665) 1 53000 5111 517,73 (5119906) IE10 86500_ 1518,000) 321 59618 ri Cua P4130115 03 503 5 l0583 , SO 512311 52.183 33 53.391 50 1000 (5791) 51].7863 (1.5081 1510951 95) 1.500 1512 1329.871' 30.6% Best of the Fest WO 0 N 9 432 - 310.863 so 510 863 5300 51)3 549 50 1009, 5199 517.048 ($8.156) 52 67 I 56500. 1152711 (51147)1 449% Rabat Earl Keen 5a -1713 406 9176401_ 50 517640 5617 55.500 1705 1 5196 518.018 1178) (SO 811, , 1.500, If 2 . ( 146.5), 405 16 Tho 514 446 Porch 5 Brothers WON 299 56.500 EO 1.680 5375, 511171 50 1000 5161 514.707 (1.027) 1$22611 1500 (�12�5279 52TI '5 Standup mackdwm 51 W 0 H 396 95.250 10 SO 95250 5275 5)0.845 1,0001 5205 914.329 159.075) (530661, 56500 15.577) _ 3 d 5 )07.009 52 W 0 350 58.910• SO 1.910 5385, 510.925 S0, 1 40 ,00 _ 9223 514534 (57.624) (521.781 56500; (914,124) ( 535) , 329% O 94 Of OUeen W0 8 279 310,238 50 510.238 3906 510.564 1 60 530 5202 514675 1340.37) (515.901 $6580 310.9871 (539201, 48.3% Standup Smack)... 83 WON 0 9791 1.710, 60 55,710 1357 511 664 50 53000 5111 515241 (99.545) 2 1500, (515,031) (548.73) Bu ace W 0 H 158 : 14.550_ SO 54 550 5287 310.427 50 53000 5181 513.895 11]651 (559.1 _56500_, ; 16.845) 00331 22.39 . Brerldi Fl21 H W0H 466 512.320_ 50 512.320 5899 512640 50 13000 5209 516.947 ($4.627) (5 993 1 (1 ,500 - _ (311,12 871 9 309 Fre WO 241 $5.195 50 1195 5475 516.653 SO 53.000 5201 520.329 1115,134) 112.80) 1500. ($21.834) (14)1 8.77), 19 4% FNno Ka 6 2209 Bros WOH , 467, 515.344 50 515.344 5300 510.736 50 53000 $219 515.564 03 4: 5509 6109 _56.5, 1 1P31) 31203). 71.9% LWrynN Black bamboo° W 0 H 488 _516415 50 318.415 5300 512.386 50 53.000 5266 515.954 5461 50.9 66500 156038), (512'30). 73.1% • Punch Brothers WO 400 _512870 50 512.670 5323 511 615 90 93.000 5210 515.148 (52.4781 (56 38.500 • ;;,978 IiY1.4511 355% KAON Mara _ W 0 H 303 _ 512,0001 50 512.030 5355 $13.873 30 53000 9215 517.443 34 753) 1615.69) 9 6 , 500 (511,263) (17,1 53. Jan Andaman 50-0)0 .. 266, 911.15, SO 511.855 6299 316653 50 53000 5159 620.111 156.456) 1529.16) 56500 (514,9561 (861.67) 43,8% Chuck Lea3Nl W O H 257 99.155 50 58,155 5250 510855 1 53,000 $199 914304 111491 (623.931 46.500 (912,&9. L - a 392% 43 Events 5001 18,142 7807. _ (6189.313) (112.501: $ 3489 10 ' 646% Events With 7061 Trek For Over 520.000 _ Lvl I - � e Lovett(2) Bernadotte Peters Peters Co-Pro 993 x,310 50 17340 5802, 645395 515,116 53.000 5395 564,509 (1.103) (59.231 - , 1500 16,-- 15 Co-Pro 499 5728175 3.250 $0 573,250 91.724 573.828 131.372) 93.000 51913 579.093 (55.843) 1611711 50.500 t .<Sk n 1 Pal Meths. b BrW Morro 462 9, SO 528.175 - 5507 528.539 5287 53.030 1 5165 0698 (92.723) (55 891 _ 98,6 L.-_ 2231 mt0J 763% John Pn 24-710 455 522250 50 $22.250 9410, 923016 50 53.600 9205 520.831 ($4.381) 16963) - 1,500 (610881 _ _91 612% Mannheim Starrier 181 55.140 50 1140 }1.300 520.325 50 53000 9173 924.797 1519.657) 19108 SO) 58 500 '•157) 3144.E 16.45. Ca6m 450 64.760_ 1 steno ",129 19.174 132.728) 1.000 9179 550.356 11036) (5)2.461 98,500 (912108) 326.90) 813% Burt 8 08,0 M _ 00-9(3 206 1)',150 90 917160 3523 62691 (96,365) 31.000 5190 328.588 !79.1461 1345 76.500 85 035' ,$78.871 51.6% Loa Edo _ _ 31 980617 ( 732231) (565.56) 98,500 73 78.89 42356 S Coin M 010l )na89u5 $Ilr%9od W .7H 288 11.P0 SO 311,270 7373 11370 SO 316270 5573 556791 523 1 7 ( _ 33000 . 8000 191 519.988 11.6981 153 0.20) 1.500 316185 6' - 5 5.04 M , 0) 0 6 543 03.. 5 0 9Uiket _ W O H 5 921,360 - 1 $4 _ 1390 50 54109 _ 98 93000 5238 545,527 /54.1371 (98.22), 56500 1683 3 617 020 Hpkav CanOM C0 -Pro 732 327,460 SO 527150 ..3 1 1,547 527.&0, 90� _ `803 8 059 1 33 . 053 (1.59 __37.64).. 1500 512.0631 1e.521 44. Joan Dates W 0 9 , 470 517,130 30 517130 3751 525.0901 40 003 5237 529.078 (511.9481 325921, . 56.600 18, ' _ 939' - BernadeltoPOore W0H 347 411.906; SO 541.980 32028, 660.64 1 71 _ $0 OW 5237 $.311 1343.351) $x.93) 56 349: -i 0141.661 45_7% Lem Comic Standing 1 nding W 0 H 310,_ 510.535 E0 510.535 53 622.192 50 1000' • 1 525.808 (515273) 1549.27). $6900 1521 910 ,,,, • 328% m lke Ja Jab War W08 395 SO 525.090 5325 - 622.30) 00 1900 5200 525.834 15744) (5183) . 98.500 7244) _(18.34 77,816 140 Tomlin 54-9r0 472, 541615. SO 541,615 5433 550.074 ' '.000 7188 953.705 (912090) 1525811 -500 - 131. ',' $39. -• 44.15. L004 Eder W O H 187 58.695 50 1.895 3550, 529.248 50 53,00 5153 12.951 (924.056) (5128 641, - 96.500 1 - (5183.40) 22.5% 000.0 Tynan W09 134 55,170 50 1,170 5100 920021 50 __$9 5209 523,629 1518,4591 5137 761 98500 (9196... 17_2% Jan Jet Walker WOM - 276 517,810 50 517.810 9245 536334. SO 53000. 5156 928,736 (510.928) (53959) , .500 217, 503.141 50.55. 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