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HomeMy WebLinkAboutagenda.council.worksession.20120605TO: MEMORANDUM Aspen Board of Health FROM: CJ Oliver, Public Health Agency Director Jannette Whitcomb, Senior Environmental Health Program:. .Coordinator DATE OF MEMO: May 31, 2012 MEETING DATE: June 5, 2012 RE: Second Quarterly Board of Health Meeting 2012 Local Public and Environmental Health Improvement Plan Update Over the course of the past several months City of Aspen Environmental Health Staff have participated in a steering committee with other stakeholders in the area to determine focus areas for the public health improvement plan based on data, community input, and professional input from the committee itself. Through that process the following topics were identified as potential areas of fucus for the public health improvement plan: - Mental Health - Access to Health Care -Radon - Senior Population Issues The next step will be for the committee to conduct a capacity assessment with the organizations providing services in these areas to determine the potential for improvement in existing programs or formation of new services as identified in the Public Health Improvement Plan. Within the categories listed above, the committee and the Public Health Agency will identify specific areas of need and determine an appropriate action plan to address specific shortfalls within the service area. Those detailed plans will be included in the 5 year public health improvement plan. Ozone The primary goal for the City of Aspen's ozone monitoring program is to determine whether ground level ozone is impacting the health of the community. Currently, the National Ambient Air Quality Standard (NAAQS) for ozone is an 8 -hour average of 75 ppb over a three year Page 1 of 3 period. Breathing ozone can trigger a variety of health problems including chest pain, coughing, throat irritation, and congestion. It can worsen bronchitis, emphysema, and asthma. This spring has proven to be our most active ozone season since we started monitoring in 2010. On April 6th, Aspen had an 8 -hour average of 75 ppb. This is the first time Aspen has hit the EPA standard of 75 ppb. Clinical and epidemiological studies have shown that breathing ozone can cause adverse health effects at or below the 75 ppb 8 -hour average standard. At this time, staff does not have the capability of predicting local air quality action days and relies on the State for forecasting such regional air quality events. Staff will continue to research local and regional activities that might be influencing our air quality. Radon The City of Aspen Environmental Health Department applied for and was awarded $22,501 for the 2012 Radon grant cycle with CDPHE. This is the third year we have been awarded a radon grant. This grant project will provide radon test kits to Aspen residents, two radon mitigation classes: one designed for the single family homeowner and the other designed for the multi - family homeowner's association boards and owners. Two mitigation systems will be installed that will serve as demonstrations to aid in the classes. The goal of the DIY radon mitigation class for single family homeowners is to provide the knowledge they need to move forward with mitigating their home for radon. The purpose of the multi - family radon mitigation class is to demonstrate how radon can impact an entire multi - family building and the steps necessary to mitigate high radon levels. The DIY class is scheduled for July 14, 2012, with the in -class portion from 9 -11 AM and a site visit to the mitigated homes afterwards. Radon test results are starting to come in. In Aspen over 66% of the homes tested this year had a radon level above the EPA action level of 4 pCi /L. Staff are starting to assist homeowners that have high radon by answering their questions and directing them to a list of local NEHA certified radon mitigation companies. Based on our findings, radon will be one of our priority areas for the Public Health Improvement Plan. Cottage Foods Bill The Cottage Foods Bill has passed in the State of Colorado and is now effective. The Bill allows for the production and sale of non - potentially hazardous foods in unlicensed kitchens to be sold directly to consumers at farmers markets and through Community Supported Agriculture programs (CSAs). CDPHE has developed guidance documents to assist local agencies in dealing with food providers who fall under the provisions of the bill. The impact Aspen will see from Page 2 of 3 the Cottage Foods Bill is not yet known however there have already been applications to the Saturday Market that fall under the bill. If correctly followed, the provisions for food service allowed under the bill pose a minimal risk to public health. Medical Officer's Update Dr. Morris Cohen will provide an update on local, state, and national conditions pertaining to infectious disease and update on other relevant topics. Page 3 of 3 MEMORANDUM TO: Mayor and City Council FROM: Ashley Cantrell, Sustainability Coordinator THRU: CJ Oliver, Environmental Health Director DATE OF MEMO: May 29, 2012 MEETING DATE: June 5, 2012 RE: Environmental Sustainability Update DISCUSSION: The purpose of this discussion is to provide Council with an update on some of the sustainability programs and draw attention to those key times when Council support and presence is requested. . Reusable Bag Program: The bag ordinance went into effect on May 1St at both Clark's and City Markets. Plastic bags are no longer available at checkout and paper bags are available for a fee of $0.20 each. The Environmental Health Department created a comprehensive outreach plan to inform residents of the change. May 1St was a huge success, with most shoppers bringing their reusable bags. Thanks to Council for your help giving away bags at the grocery stores. Grocery stores are responsible for tracking the number of paper bags sold and reporting those numbers to the City once a month. Official numbers of paper bags sold since May 1St is not available yet, but initial estimates indicate that grocers have distributed fewer paper bags than originally anticipated. The reusable bags have arrived from Gar Co. sewing works and are a very popular item. Different types of bags with different images will be available throughout the summer. These bags are made-in the Roaring Fork Valley using repurposed materials donated from outdoor recreation companies like GoLite, North Face and Big Agnes. Next Steps: Staff is working with hotels, rental car companies, property managers and ACRA to put reusable bags in hotels and lodges and to educate visitors about the bag program. Budget: Council approved a total bag outreach budget of $59,940. To date, the total cost of the outreach program, including temporary help, reusable bags and marketing is $18,200. Aspen Tap Program: Aspen now has six bottle filling stations, with a seventh to come soon. These stations are part of the Aspen Tap program that began last summer. Stations are now located at the following places (Attachment A): - Koch Lumber Park - Aspen Golf Course Clubhouse - Francis Whitaker Park - Wagner Park Restrooms - Rio Grande Park - Connor Park An interactive bottle filling station is now available on the first floor of City Hall. This station tracks the amount of water used and equates that amount to the number of bottles of water that were avoiding by drinking tap water. Additionally, stainless steel water bottles are available for sale to businesses, non- profits or individuals. These bottles are a convenient size for daily use. Staff encourages local businesses to sell these bottles in their stores this summer. Waste Code Changes: Environmental Health Staff is working closely with Community Development to develop stricter and clearer requirements for trash and recycling space at new buildings. Staff is researching the possibility of requiring more space both inside and outside the building for trash, recycle and compost containers. Green Team /City Hall Garden: The City and County Green Team hosted a successful lunch where attendees planted the City Hall demonstration garden (located behind City Hall) and learned gardening tips and techniques. The next Green Team event will be a Highway Cleanup event in June. Green Drinks: The ZGreen program is hosting a monthly Green Drinks throughout the summer. The first will be this Thursday, June 7th at Stan Clauson and Associates at 5pm. Green Drinks is a national organization that encourages business professionals and concerned citizens to engage in networking and dialogue on environmental issues. Council members are invited to attend these monthly events. ATTACHMENTS: Attachment A: Map of Aspen Tap filling stations ASPEN TAP FOUNTAIN MAP Durant Avenue E. Cooper Avenue Cooper Avenue E Hyman Avenue Hyman Avenue IES Hopkins Avenue Main Street Bleeker Street '"A fountain is also located at - 0%odepi the Aspen Golf Course clubhouse. @ 3 MEMORANDUM TO: Mayor Ireland and Council FROM: Wheeler Executive Director Gram Slaton THRU: Assistant City Manager Randy Ready DATE OF MEMO: 16 May 2012 DATE OF MEETING: 5 June 2012 RE: Recommendations to City Council regarding Wheeler subsidy reduction The summary memo following the February 28, 2012, meeting with City Council is attached at the end of this document for reference purposes. SUMMARY: As per City Council's direction at the end of the February 28, 2012, work session, Wheeler staff has worked with the Wheeler board and a panel of peer reviewers, including Don Telfold, President and CEO of San Diego Theatres; Bjorn Olsson, Executive Director of the Tarrytown Music Hall, Tarrytown NY; Jamie Booth, Development Assistant and Programs for the Center for the Arts, in Crested Butte CO; and Numa Saisselin, Executive Director. of the Count Basie Theatre in Red Bank, NJ. Others, including Kris Sable, Executive Director of the Vilar Performing Arts Center, in Beaver Creek CO were invited to respond but did not. Comments from each of the above are included after the memo's discussion of the separate recommendations. These recommendations are presented here in advance of the scheduled June 5, 2012, follow -up work session for further discussion and possible immediate implementation. BACKGROUND: A full review, discussion, and implementation of changes as directed by City Council of the Wheeler's programs and subsidy levels was established as a top ten goal for the 2011— 2012 year. Wheeler staff worked throughout the remainder of 2011 and into 2012 on a comprehensive document on the Wheeler's programming history and past Council direction. This was presented and discussed in work session on February 28, 2012. DISCUSSION: The discussion for each question follows the recommendation printed in boldface RECOMMENDATION /COMMENT: Wheeler board and staff believe that they.have thoroughly considered each of the questions and made recommendations that can be adopted and implemented immediately, and recommend that City Council give direction for staff to prepare a fee ordinance that would adopt them. . CITY MANAGER COMM WHEELER OPERA HOUSE SUBSIDY STUDY QUESTIONS AND WHEELER BOARD OF DIRECTORS' RECOMMENDATIONS TO 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? The Wheeler board of directors' recommendation to Council is that the Wheeler continues its strategic investment in arts events. Wheeler staff will closely monitor costs versus expenses, and wherever applicable apply goals and devices that seek a meaningful year- over -year improvement in attendance figures, subsidy reduction, or both. Arts events that do not perform to expectations will be substantially modified or dropped. The Wheeler board will continue to monitor the overall performance of the Wheeler's programming through its regular meetings. Discussion: Starting in late 2005, Wheeler staff systematically organized all historic records from rental and self - produced performances to the degree possible, in order to have a comprehensive overview of the nature of bookings in the Aspen market in general and the Wheeler in particular. This data provided a foundation for assessing what has worked for the venue in the past and what has not; however, experimentation over the following years was required to understand whether past trends continued to be true. In the course of this new producing history, several previously successful forms (such as Celtic and '60s -era Folk) were found to no longer generally trend positively, and further presentation of those forms was trimmed or cut entirely as a risk -area for Wheeler presenting. New presenting endeavors, such as the Wheeler's festivals, regularly go through a post -mortem both internally and with the Wheeler board and City Manager's Office, and will continue to do so. Festival efficiencies continue to be explored and refined. By example, for 2013 festivals (if continued by City Council), Wheeler staff will seek better housing rates for artists by issuing an Invitation To Bid (ITB) to Aspen lodges in the downtown core. Subsidy levels continue to improve through a combination of increased sales, creative initiatives, and underwriting support. For events that outside entities bring to the Wheeler for co- promotional or other producing assistance, Wheeler staff is taking a more conservative course as the national and local economies continue to improve, requiring the outside entity to take on more financial and authoritative responsibility. Examples would include rentals to Aspen Film and the Wheeler Associates, both of which received relief assistance in the 2008 — 2011 period, and cooperative ventures with Belly Up Aspen such as the recent Martin Sexton performance where the Wheeler's risk was limited to in -house costs only. Operating efficiencies, including. programming efficiencies, has been an objective of Wheeler management throughout the current Executive Director's term, but were in many instances frustrated by the sharp downturn of the Aspen economy starting in November 2008. As more data are gathered and more experience culled, as well as continued improvement in the economy, Wheeler staff is able to better effect these efficiencies and will continue to do so with the input of the Wheeler board and City Manager's Office. Examples of operating efficiencies. that have already been enacted include the creation of the Audience Services Manager position, which combines two previous full -time positions, formalizing the closing of the Aspen Show Tickets box office during off - season Sundays, and consideration of using volunteers to service the Wheeler lobby bar during Wheeler Film Society movies. 2 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? The Wheeler board of directors' recommendation to Council is that the Wheeler maintains its current programming mix, with an emphasis on live events and significant film events. Further, the Wheeler should explore.adding areas of programming that may be underserved in the community, such as for young children and underage young adults. Ultimately, the Wheeler should seek to increase performance opportunities and bring a wider diversity of programming to Aspen patrons. Discussion: Since at least late 2005, the Wheeler has sought to work cooperatively and compatibly with other presenters and presenting venues so as to be one part of a larger profile of entertainment and cultural offerings to Aspen residents and guests. This has meant studying the calendar as well as the presenting profile of other entities and venues in order to avoid as many collisions as possible. One method for doing this has been to identify entertainment types that are not a strong component of the profile of such entities as Belly Up Aspen, Aspen Santa Fe Ballet, or the Aspen Music Festival and School. To that end, the Wheeler has developed a programming profile for types such as "coffeehouse" acoustic music, stand -up comedy, and documentary film. The Wheeler has also worked with groups such as Jayne Gottlieb Productions and Theatre Aspen to bring in quality family entertainment that also features a large degree of local participation. In terms of calendar fulfillment, there is a live and significant film event, calendar that pushes the envelope of how much culture a small community can absorb. The reduction of activity that was witnessed in the 2008 — 2011 period of the recession is steadily reversing, allowing the Wheeler to back away from being the primary booker of its own calendar. In studying the calendars of sister resort town arts venues, such as the Vilar in Beaver Creek and the Sheridan Opera House in Telluride, and keeping in mind the physical limitations of. the Wheeler space, there would appear to be a hole in the Wheeler's programming mix that involves offerings for families and, to a more modest degree, concert events for underage young adults. By contrast, the Vilar presents significantly more "road show" theatricals and dance events than any other Western Slope venue, but also has the house size in order to present them; the Wheeler cannot accommodate such productions. The Sheridan has all of its orchestra -level seats stripped out for most of its season in order to accommodate more of a nightclub feel; the Wheeler's seats are fixed. (The Vilar tends to purchase all of its shows, while the Sheridan works mostly with community groups to produce grassroots events.) Other venues, such as those in Crested Butte and Jackson Hole WY, are more community- center arts venues with a much smaller presenting profile than the Wheeler, Vilar, or Sheridan. Wheeler staff intends to explore the possibilities for family and underage young adult programming, keeping in mind that historically family road shows are expensive relative to income potential, and that the Belly Up Aspen has discontinued underage young adult shows due to a perceived alcohol /substance abuse liability. Both of these types of entertainment offer opportunity to fill a need in the community, however, and Wheeler staff will engage the Wheeler board, City Manager's Office, and others in the pursuit of such programming options. 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? As directed by Council, the Wheeler board supports the strategic solicitation and attainment of sponsorships and donations, provided that such activity does not require a full -time addition to the Wheeler staff, nor directly interferes with the fundraising and sponsorship activities of other Aspen -based arts not - for - profits. Additionally, the Wheeler board supports continued development of the 7908 Foundation as a conjoined but independent not - for - profit entity created for the benefit of the 7908 Aspen Songwriters Festival, and would be supportive of other, similar initiatives to relieve the Wheeler and City of the full burden of production costs of its other festivals. Discussion: Historically, because of the RETT, the Wheeler has had no need to seek out donors, sponsors, or underwriters for its events, and was directed by City Council to discourage any such activity as it could potentially be in direct conflict with Aspen's other arts not - for - profits for limited charitable or sponsorship support. With the advent of the Wheeler stepping into a larger cultural role as developer and producer of festivals, however, the need and desire for outside sources of funding, as well as interest from potential funders and supporters, has possibly changed that dynamic. In order to continue and grow these festivals, and relieve the Wheeler from being the sole source of financial support for such continuance and growth, outside support in the form of sponsorships and underwriting becomes more and more essential. However, respect for Aspen's other arts not - for - profits necessitates limiting such support to local and particularly national sponsors, and quiet development of underwriters as well as small donors, and should not expand to a public development campaign nor require the Wheeler to take on additional staff in order to organize and manage such activity. Wheeler staff is working with a group of citizens from South Florida that has ties to Aspen and wishes to develop The 7908 Foundation, which would have the twin aim of underwriting operating costs for the 7908 Aspen Songwriters Festival, in general and its education of budding songwriters, in particular. In fact, for the 2012 7908 Festival, this entity provided $10,000 in underwriting for the Berklee Songwriters and other new talent, while also providing $25,000 in general operating support to offset the overall loss from the event. In the view of Wheeler staff, this is the perfect example of an underwriting relationship that addresses .the financial needs of festival development while having no impact on the fundraising initiatives of other organizations. The Wheeler hopes to discover and grow other, similar relationships to support its individual programs. M 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? The Wheeler board of directors' recommendation to Council is that the Community Events program be continued using its present qualifying criteria for inclusion in the program (free to the public; seeks a broad -based audience; and does not materially benefit any promoting entity). The Wheeler board asks City Council to consider that Community Events initiated by outside parties be charged a flat $100 usage fee in order to offset some of the in -house costs of event production. Wheeler- initiated .Community Events would continue to be funded entirely through Wheeler programming. Further, the Wheeler board of directors' recommendation to Council is that the Wheeler continue to honor the existing contract with the Wheeler Film Society through its third year (expiring June 2013), and then solicit through a broadly disseminated Request For Proposals the service contract for filling the Wheeler's selected dark nights for film exhibition. Discussion:. The Wheeler has for many years been expected to fulfill a role. of bringing free events to the community, particularly events that have a local and /or charitable focus. As well, it has been the expressed desire of City Council to have a majority of the nights when the Wheeler would otherwise be dark programmed through a service contract (to this point, always with the Wheeler Film Society) with non - mainstream movies. While these are both programs that ensure community engagement and keep the building vital for nearly every week of the year, the soft and hard costs of operating these programs without sufficient opportunity for revenue mean that these Wheeler programs will always be in a subsidy situation. Community Events are scheduled in one of two ways: They are either initiated by an outside party seeking to have its event featured at the Wheeler and offered to the public free of charge (Aspen Center for Physics, Shining Stars, etc.), or are free events created by Wheeler staff (Winterskol, , 9/11 101h Year Observance, etc.). Most community events brought to the Wheeler by outside parties are simple in nature and do not require a significant hard -cost investment, and most benefit from attracting a sufficient audience to warrant the Wheeler engaging the date. However, a few do'not. Wheeler staff believes that a nominal charge of $100 per usage would offer a fair partial recovery of services for most outside - party community events, while also being of sufficient size to caution away certain parties that rriay.not be fully invested in their own event. As for its self- initiated community events, the Wheeler will likely produce fewer of these as more rental events are being booked. The Wheeler Film Society is at the end of its second year of a three -year service agreement, and Wheeler staff and board feel that the balance of the agreement should be honored, after which a new effort should be made to attract a film exhibitor that can fill the Wheeler's dark nights. The Wheeler Film Society will certainly be encouraged to apply. Additionally, Council needs to be aware that there are sweeping changes in the film industry that will require the Wheeler to replace its 35mm projection system with DCP (Digital Cinema Projection) if we are to stay current with the kind of industry standards that Aspen Film, the Wheeler Film Society, and others have come to expect of us. This new technology relies on a digitally - transmitted "print" of a film, and will bring tremendous new experiences through higher projection speeds and visual clarity that stand to make the Wheeler a unique large - screen destination. This technology replacement is being considered as part of a larger balcony remodel project that the Wheeler's staff and board are anxious to discuss further with Council. 5 S. 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 a publicly- available rental venue? The Wheeler board of directors' recommendation to Council is that the Wheeler proceed cautiously with rate increases, as detailed in Attachment A while remaining sensitive to the ability of its not- for - profit user groups and others to afford use of the venue. The Wheeler board's recommendation to Council is to not create an overly complex menu of venue rental rates based on time of year, day part, or other distinction, as the Wheeler has previously had such a menu and found it detrimental to providing the best service for its customers. Discussion: Prior to 2006, the rental rate structure for user groups of the Wheeler was not only overly complicated and very difficult to discern, it was also built upside -down in its ability to fairly approximate the cost of doing business at the venue. By example, the daily rental rate was extremely high, while the hourly fee for stagehands was deeply discounted, inadvertently encouraging rentors to use Wheeler human resources inefficiently and to no one's benefit. This was corrected in 2006 with a rental fee that approximated the cost of utilities and certain other soft costs on a pro -rated daily basis, while increasing the stagehand and other costs to more accurately reflect rates that the Wheeler was paying. The recession inhibited the Wheeler's ability to raise rates during the. 2008 — 2011 period, as user groups were already struggling to pay production costs in the face of diminished ticket sales. Wheeler board and staff feel that the local economy is now at a sufficient recovery point that certain rates can bear being increased in order to better support the Wheeler's actual cost of services. However, caution is urged as many of the Wheeler's user groups have yet to experience the benefit of an improving economy and may not be able to easily support more than modest incremental increases. Rates are subject to review annually and will be measured against actual operating expenses for further adjustment. These new rates also include for the first time a bundle of promotional services that the Wheeler can offer its rental clients, which will better ensure that rental events are properly advertised and publicized locally.. This is an important new service, since the plethora of new and traditional media now flooding potential buyers means that it is much more difficult to have one's message stand out and be properly noticed and considered. What will need to be added or adjusted to the rental rates package, should it be added to the Wheeler's inventory of technology, is a fair rate for use of its new DCP system for film exhibition, since this will represent a significant new investment by the Wheeler for its user groups. Attachment A reviews current rental rates and services on the left side, and adjusted or new fees on the right. Those items in red are suggested new fees, based on discussions with relevant Wheeler staff, peer review, and review of actual soft and hard cost averages. 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? The Wheeler board of directors' recommendation to Council is that the Wheeler reviews bar pricing in the downtown core, and. creates a menu of.drink and food options that better reflects the average cost of such services while also being attentive to affordability for all Aspenites, and to implement any and all price changes at the .earliest opportunity. The Wheeler board's recommendation to Council is not to have a variable pricing menu based on show type or time of year. Discussion: For as long as the present Wheeler staff can remember, the desire of City Council has been to maintain prices for Wheeler bar items that offer affordability to all Aspenites. With the recent direction to make Wheeler. departments perform more efficiently, the question of Wheeler bar. pricing must be reconsidered to both reflect a "low average" of similar -item costs in the immediate downtown core as well as better perform in, order to absorb the exaggerated set- up`and breakdown costs that come with operating a bar in an abbreviated time period. Wheeler staff and board suggest reviewing the. Wheeler bar operation to take advantage of the best - performing bar items, drop those that have low.margins or poor sales, perhaps reduce the variety of items offered, and assess prices after a formal comparison of similar -cost items at restaurants and bars within a two hundred foot radius of the Wheeler. A similar review of sales and ways of simplifying the menus of items available should be conducted for the Wheeler bar during Wheeler Film Society and other low- audience - average events. Finally, a review of the human resources used in the Wheeler bar is being conducted to assess appropriate staffing levels for events, speed and quality of service, time efficiency, and patron satisfaction. Experimentation is being done using Wheeler volunteers and salaried employees for staffing the bar for Wheeler Film Society and other low- audience - average events. Members of City Council suggested that perhaps pricing should be changed to take advantage of a higher price point during peak times of year. Wheeler staff and board are not supportive of this direction, as shows at all times of year attract Aspenites of all income levels, as well as the mechanics of repricing within the bar's sales system and administrative accounting. III J 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? The Wheeler board of directors' recommendation to Council is that the Wheeler proceed cautiously with rate increases, as detailed in Attachment B, remaining sensitive to both the ability, of the rentor to absorb into its show production expenses, and the capacity of the public to accept as a reasonable pass- through of the cost of doing business. Discussion: Aspen Show Tickets has grown to be a $1.9 million business, with year -round activity. Outside (non - Wheeler) sales have far outstripped sales for events at the Wheeler, which is more a reflection of growth in sales clients than it is activity at the home venue. Because outside sales demand more investment in Wheeler staff time and other resources than events that take place in the historic venue, a review of the fee structure is in order, particularly as the soft costs necessary in order to make this program successful have not been fully incorporated into its numbers. Still, Wheeler staff and board urge caution in raising rates or creating new fees, as absorption of a large increase in the total cost of doing sales through Aspen Show Tickets may become cost prohibitive and drive clients towards other providers. Of particular concern to Wheeler box office staff is the consideration of any per- ticket fee, as this will increase the price of tickets to the consumer. Given—the high amount of film events as well as low -cost outside events that the Wheeler's Aspen Show Tickets processes, there is unease about how clients will be able to adapt to this mandatory pricing imposition, and fear that Aspen Show Tickets may experience negative client attrition because of it. By comparison, the Vilar Center in Beaver Creek has per- ticket fees of $2.00 for window sales and $4.00 for online sales, but charges only a $1.00 order processing fee. Belly Up Aspen has a variable per - ticket fee structure; a quick inspection of their website showed fees of between $3.50 and $22.25 per ticket, depending on the face value of the ticket. Nationally, there has been no consensus on this issue even as per- ticket fees have become an accepted norm of doing business in most places, leaving it difficult to find a path to what might be an "acceptable" entry point for the Wheeler. Wheeler staff expects that there would be considerable blowback from the public at the introduction of a per- ticket fee or fees, and asks Council to take this into consideration when weighing the benefits of this potential sources of revenue. Attachment B reviews current box office rates and services on the left side, and adjusted or new fees on the right. Those items in red are suggested new fees,'based on discussions with relevant Wheeler staff, peer review and review of actual soft and hard cost averages. PEER REVIEW NOTES AND COMMENTS: As part of this report to Council, as mentioned, the Wheeler staff took the additional step of consulting with a group of industry peers' selected based on personal experience with the individual, reputation of the venue, and history of success in proactive management. Below is a summation of points raised by each one that responded. Don Telford, President and CEO of San Diego Theatres (1,335 -seat theater): Don reports that his building was until 1993 a City - controlled building much as the Wheeler is, answering to a City Council. It was later folded into a larger entity that removed it from City Council control and civic funding, making it a true stand -alone not - for - profit, at which point it considerably changed its business model to maximize its revenue potential. At this point, rental rates and service fees were altered radically, phased in over three years. This caused more than a few previous user groups to no longer be able to consider Don's venue for its needs, and basically made it available only for those who could afford it, thereby lowering the overall use of the venue and the diversity of programming mix for the public. Don's advice is to consider this as a cautionary tale before taking any radical revenue - increase direction, given the Wheeler's understood commitment to being a home for all of the arts in Aspen. Don's venue's approach to concessions is "to provide good products, good series, and good net revenues. Affordability is not an overriding goal. His yardstick for comparative pricing is the movie - exhibition industry, not the surrounding bars and restaurants. Don's venue uses Ticketmaster.for its ticketing system, does not service other venues or user groups, and does not charge patrons a service fee for window sales. In terms of underwriting and sponsorships, their experience is similar to ours in that they have laid off solicitations that may compete with user groups, but currently are reassessing this position as their funding support needs continue to grow. Jamie Booth, Development Assistant and Programs, The Center for the Arts, Crested Butte CO (215 -seat theater): In terms of programming cost recovery, Jamie says "This is a huge question that the town and our board have for the center also. I basically use a similar argument as you each time this is brought up. Our free outdoor concerts are our 'core product'... they constantly lose money but raise the morale of the town so significantly that we continue to do'them." As regards concessions pricing, she reports "We have a stigma attached to our bar as being too expensive - even though we are one of the cheapest bars in town. I am of the mindset that the cheaper the drinks are, the more people will spend. I think this plays true in every situation. People are much more apt to buy 3 $3 beers than 3 $5 beers. In the end, you make more money with lower priced items." She also says that Crested Butte does not charge any per- ticket or processing fees. Bjorn Olsson, Executive Director of the Tarrytown Music Hall, Tarrytown Ny(843 -seat theater): .Bjorn's venue is a stand -alone not - for - profit theatre and considered to be in a bedroom community of New York City, and he comments "[Wheeler] Rental rates are way too low. I know you are a smallish house, but your rental rate should probably be a good bit above $1,000. Our rates are just under $2.50 per seat and we're cheap. Even though you want your community to have access to the theater, as a professional venue, your rental rate should be at a level where you weed out those who aren't serious or professional enough to pony up, if that makes sense. For non - profit rates, there should be a similar hurdle, but since you receive a lot of public funding, maybe there's a case to be made for very low community rates? NOTE: I notice that your ticketing fees are way higher than ours ..." M .Numa Saisselin, Executive Director of the Count Basie Theatre in Red Bank, NJ (1,568 -seat theater): Numa's venue is even closer to New York City and is also a stand -alone not - for - profit entity. His comments include "Everyone needs to understand that what you can charge for rental rates has less to do with what the venue and your services are worth, and more to do with what the market can bear. I agree that you should charge the same rental rate for every day of the week. We found that promoters are going to rent the hall whenever they can get a show, period, so the discount doesn't actually drive new business on "off days. In fact, it probably loses you money. Can you think about modest rental rate increases every year? A percentage point or two every year will hardly be noticed, but over time you will benefit the Wheeler. You should totally have market driven prices at the bar! Perhaps higher than market, since you have a captive audience. l get the need to be affordable to the local residents, but you should at least be charging them what they'd pay elsewhere. As Council can see, there is a wide variance of opinion on rental rates, depending on the stated or implied mission of the venue. Given the Wheeler's commitment to inclusion, rather than exclusivity, of the venue for as many user groups and patrons as possible, Wheeler staff and board believe that some of these comments are inconsistent with the direction the Wheeler has followed for most or all of its 28 year history. One consistent message we heard was that change may need to come slowly, as well as the need to understand what our market will bear. This pertains to all areas presently under consideration for change, from concessions pricing to rental fees to services fees to the public. "Approach with caution and understand the.downside" is perhaps the best overall summary statement from this peer group. 10 Aspen City Council Work Session Summary MEETING DATE: Tuesday, 28 February 2012 AGENDA TOPIC: Wheeler Opera House Programs and Subsidy Information PRESENTED BY: Gram Slaton, Wheeler Executive Director COUNCIL MEMBERS PRESENT: All (Frisch, Ireland, Johnson, Skadron, Torre) SUMMARY OF DISCUSSION: The purpose of the meeting was to review the twelve various programs of the Wheeler Opera House and how the differential between revenues and expenses affects subsidies for eleven of the twelve programs. Direction was sought from Council on programming policies through a series of seven questions. Staff was instructed to stabilize and /or reduce operating deficits wherever possible while also maintaining the Wheeler's core mission, which includes its role as an historic venue, and its role of supporting.the arts assets of the Roaring Fork Valley. POLICY DIRECTION: 1. To what degree shall the Wheeler continue to strategically invest in arts events? Council was supportive of the Wheeler's general programming direction and wished for staff to take all necessary measures to best ensure that any and all gaps between revenues and expenses continue to improve, including setting goals and achieving them. 2. What direction shall City Council give Wheeler staff in terms of programming mix? Council felt that this was a matter best governed by the Wheeler board of directors. Torre felt that the. programming mix was diverse, while Johnson expressed a desire for more diversity of programming. 3. Shall the Wheeler begin to strategically solicit outside funding sources ?. Council was supportive of the Wheeler pursuing all outside funding sources, so long as this did not require creating a dedicated fundraising person on staff. 4. Shall programs that offer no ability to reasonably recover their operating costs continue as part of the Wheeler's programming profile? Council felt that this was a matter best governed by the Wheeler board of directors. 5. Shall the rental structure and /or rates for the Wheeler be adjusted? Council was supportive of increased rental rates, and suggested possible scaling based on time of year, financial profile of rentor, or other criteria that might maximize revenue. 11 6. Shall the Wheeler rates for box office services be adjusted? Council was supportive of increased . box office service rates. 7. Shall Concessions prices be adjusted? Council was supportive of increased concessions pricing. in all of these answers to policy direction, Council directed that discussion take place at the board level and then return to Council with fully - defined recommendations for Council approval. Estimated Date for Follow -Up with City Council: Wheeler staff and board will use the next two or more monthly meetings to discuss and script recommendations for Council approval, and return to Council in late spring or early summer for next steps. 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