THIRD MEETING OF THE YEAR 2005 -

MARKHAM THEATRE BOARD

TOWN OF MARKHAM

 

York Room, Markham Civic Centre

Monday, April 4th, 2005

 

MINUTES

 

ATTENDANCE:

 

Members

 

Brian Harvey, Chair

Evelyn Bailey, Vice-Chair

Alex Chiu

Neil Fernandez

Maxine Houghton

Leslie Johnstone

Jim Jones

Pat Kincaid

Genny Landis

Michael Landry

George McKelvey

Mario Miranda

Barb Roth

Joyce Scobie

 

Regrets

 

Elaine Rubin

Frank Scarpitti

Gary Unitas

 

Guests

 

Ron McKeown

 

Staff

 

David Scott, Theatre Manager

Debbie Watson, Theatre Secretary

 

 

The meeting convened at the hour of 5:35 p.m. with Brian Harvey in the Chair.

Third Markham Theatre Board Meeting - 2005,

April 4th, 2005,

Page 2.

 

1.0     REMARKS FROM THE CHAIR

 

          Brian Harvey thanked those people who responded to the questions regarding their role on the board. He read aloud some of the responses.  David Scott is currently looking at updating the document that outlines the roles and responsibilities of the board members.

 

1.1     APPROVAL OF THE MINUTES OF THE MARKHAM THEATRE FOR PER- FORMING ARTS BOARD MEETING HELD ON FEBRUARY 28TH, 2005

 

          RECOMMENDED:  THAT THE MINUTES OF THE MARKHAM THEATRE FOR PERFORMING ARTS BOARD MEETING HELD ON FEBRUARY 28TH, 2005, BE APPROVED AS CIRCULATED.

 

1.2     April and May Events

 

David Scott reported that Opera York has just performed their first fully staged opera, and the theatre’s only opera production in the past 10 years.  There will also be a couple of school uses during the month of April.  The last professional entertainment season show will be April 28th.  The York Region Board of Education is currently operating under a work action, but this has resulted in only one school cancellation to date. The current status is that field trips that are already booked by schools may proceed.

 

In response to a question by Brian Harvey, David Scott said that the ability to re-rent the date now available in May at such short notice is highly unlikely.  The school that cancelled signed an agreement that they would be responsible for the base building cost, but do not have to pay staff costs.  There are no shows on the May 24th long weekend.

 

2.0     FINANCIAL REPORT

 

2.1     Finance - Mario Miranda, Chair, Michael Landry, Pat Kincaid, Joyce Scobie

 

(a)      February Month End

 

          Mario Miranda advised of a February deficit just under $24,000, with several items still outstanding.  One January sponsor is unpaid to date.  A staff member from another town department is being paid from a theatre salary account.  Once these and similar transactions are taken into account, the 2005 deficit to date will compare to February, 2004.  The Committee met with David Scott to discuss the current rental fees.  The theatre is maintaining a rental capacity, comparable with the 320 rental days in 2004, but is still operating at a deficit.  There may be an opportunity to look at the rental allocations (number of days per year) regarding types, i.e. community, professional, education and professional entertainment season.  The rental structures haven’t been looked at recently.

Third Markham Theatre Board Meeting - 2005,

April 4th, 2005,

Page 3.

 

After some further discussion, it was

 

Moved by Mario Miranda

Seconded by Michael Landry

 

THAT Town staff be requested to assign Financial Services staff to work with the Finance Committee and Theatre staff to analyze the rental structure and possible reallocation of use days.

 

Resolution carried.

 

(b)      Year-End Comparative Statistics

 

          Mario Miranda noted that the number of days rented has remained consistent from 2004 to 2005, but the combined rental revenues are down slightly.

 

          David Scott explained that there are two different rental rates – regular and community.  The number of dates rented at the lower rate vs. the number at the higher rental rate points out the disparity, which is why the rental rate structure should be re-examined.

 

          In reply to a question by Maxine Houghton, David Scott said that the staff rates for both a regular and community user are the same, however, the building rates are lower for a community use.  In addition, schools and community groups can bring in their own staff to work on a show.  All other renters must use theatre staff exclusively.

 

          Mario Miranda volunteered to work on the project to study the rental rate structure and asked for other volunteers.

 

3.0     MANAGER’S REPORT

 

3.1     P.E.S. Sales Update

 

          David Scott reported that sales to April 3rd are very positive, with 86% overall average capacity sold to date.  There is still the potential for growth.  The last two shows have received grants through the Arts Presentation Canada program.  The spring capacity for 2005 is at 90%.  There was a large increase in ticket sales revenue budget in 2005, however, over half of the budget has already been met, with slightly under $300,000 left to earn in fall sales. The 2005-2006 professional entertainment season tickets go on sale May 2nd.  This is the night of our Season Launch, and all board members are encouraged to attend.  Deloitte is returning as the event sponsor. There will be two presentation sessions on that evening with a video of the season, and a number of live performances.  The invitations are being sent out to a broader range of ticket buyers, in order to try and fill the house for both performances.

Third Markham Theatre Board Meeting - 2005,

April 4th, 2005,

Page 4.

 

          Jim Jones expressed his concern with the ticket pricing for the professional presentations if we are loosing money yet have 90% capacity utilized. He felt that the theatre should be making money on presentations at 75% capacity.

 

          David Scott replied that this is a problem.  Some shows could sell more seats and some could have higher ticket prices.  He noted that some theatres do not publish ticket prices but rather base their prices on what the market will bear on any given day or week.  The goal that he sets out is that each show should break even financially.  He noted that some shows do make money and others loose money. In order to set ticket prices, many factors are taken into consideration including comparative pricing with other theatres of a similar size in similar markets.

 

          Brian Harvey suggested that statistics be obtained from other theatres which would outline the cost to run them.

 

          David Scott pointed out that it is a decision that the town has made regarding the investment that they want to make in the performing arts in the community.  The types of professional artists presented and the users who rent the theatre creates a delicate financial balance.  He noted that only about 8% of the total theatre expenses are a budgeted subsidy.  The theatre that is closest to the Markham Theatre has a subsidy of about 25% of their total operating expenses.  The City of Kitchener invests over a million dollars each year in it’s theatre. The investment depends on how important performing arts are to the community. Does the theatre want to take a chance with the artists it presents or stick entirely to the financially safe acts?

 

          Michael Landry noted that the town’s web site says the theatre is a world-class facility.  He thought the town would want to break even but agreed that it is a balancing act.

 

          Joyce Scobie wondered why an act like Don Harron would be brought in if it only netted $413.

 

          David Scott pointed out that the Don Harron show presented in January was at 91% capacity.  Stratford only gets only about 60% average capacity and would love to have 91%.  How important it is to the community to be multi-dimensional.  Presenting professional artists at the Markham Theatre has to be done in the best and most fiscally responsible way.  The number of shows for each musical performer has been carefully managed over the years reducing some artists from three performances to only the number we know can sell, with options for additional performances.

 

          Evelyn Bailey added that 91% capacity sold and only a small profit earned may not be a reflection on the show and the sales, but more that the show didn’t have a sponsor.

Third Markham Theatre Board Meeting - 2005,

April 4th, 2005,

Page 5.

 

          Brian Harvey pointed out that shows are priced to break even.  The question is whether or not the market will bear an increase in ticket prices.  He wondered if there would be a replacement for the Canadian Heritage grant program.

 

          David Scott explained that the program was put in place to encourage presenters to present more risky shows.  An example is ¡Bulla! - a modern dance show.  Modern dance has never traditionally sold very well in Markham, nor has there been an audience in the past for orchestral music.  Ticket sales for shows like the Peking Acrobats are a result of the changing and evolving cultural makeup of the community.

 

          Michael Landry said that Glenn Miller could have had a second performance.

 

          David Scott agreed but pointed out that it would have increased our costs in areas like marketing expenses and as a result put the theatre at risk if the second performance were added and it didn’t sell completely. It was a safer idea to simply sell out the single show and be happy with a small profit.

 

          Evelyn Bailey pointed out that it’s easy to say that there could have been a second show, but that second show might have had a capacity of only 40%.

 

4.0     ACTION ITEMS

 

5.0     UPCOMING TOPICS

 

6.0     COMMITTEE REPORTS

 

6.1     Sponsorship – Genny Landis, Chair, Maxine Houghton, Vice-Chair, Neil Fernandez, Pat Kincaid, Jim Jones

 

          Genny Landis reported that they sent out about 200 invitations to the April 14th sponsorship cultivation event.  A number of people have already committed.  Unilever said that they give to children’s charities.   Because sponsorship is a corporate expense, there is no tax receipt issued.

 

          In reply to a question by Michael Landry, David Scott explained that if someone joins the membership program, the money goes into the theatre endowment fund.  They do get a tax receipt for the donation.

 

6.3     Future – David Banfield, Chair

 

          The Future Committee had nothing to report at this time.  David Banfield recommended that this item be removed from the agenda until further notice.

Third Markham Theatre Board Meeting - 2005,

April 4th, 2005,

Page 6.

 

7.0     OTHER BUSINESS

 

Michael Landry questioned the status of the new software program that will assist in tracking potential and existing sponsors and fund raising.

 

          Jim Jones replied that it is ready to go but the decision on it’s use is up to Commissioner Jim Sales, and it hasn’t been made yet.

 

8.0     DATE OF NEXT MEETING

 

Monday, May 9th , 2005, 5:30 p.m.

York Room, Markham Civic Centre

 

9.0     ADJOURNMENT

 

There being no further business, the meeting adjourned at 6:30 p.m.