SECOND MEETING OF THE YEAR 2005 -

MARKHAM THEATRE BOARD

TOWN OF MARKHAM

 

York Room, Markham Civic Centre

Monday, February 28th, 2005

 

MINUTES

 

ATTENDANCE:

 

Members

 

Brian Harvey, Chair

Evelyn Bailey, Vice-Chair

David Banfield

Alex Chiu

Neil Fernandez

Maxine Houghton

Leslie Johnstone, Unionville High School

Jim Jones

Genny Landis

Michael Landry

George McKelvey

Frank Scarpitti

 

Regrets

 

Pat Kincaid

Mario Miranda

Barb Roth

Elaine Rubin

Jim Sales

Joyce Scobie

Gary Unitas

 

Staff

 

David Scott, Theatre Manager

Debbie Watson, Theatre Secretary

 

 

 

 

The meeting convened at the hour of 5:30 p.m. with Brian Harvey in the Chair.


Second Markham Theatre Board Meeting - 2005,

February 28th, 2005,

Page 2.

 

1.0     REMARKS FROM THE CHAIR

 

          Brian Harvey noted the lack of a quorum at the beginning of the meeting, and welcomed Leslie Johnstone, who has replaced Gayle Brocklebank-Vincent at Unionville High School.

 

1.1     APPROVAL OF THE MINUTES OF THE MARKHAM THEATRE FOR PER- FORMING ARTS BOARD MEETING HELD ON JANUARY 24TH, 2005

 

          It was noted that Michael Landry was not present at the meeting.

 

          RECOMMENDED:  THAT THE MINUTES OF THE MARKHAM THEATRE FOR PERFORMING ARTS BOARD MEETING HELD ON JANUARY 24TH, 2005, BE APPROVED AS REVISED.

 

1.2     February Events

 

David Scott reported that there are events on most days during the month.  David and Judy are doing four performances of “PigMania” during the March break. There are also a couple of dance recitals. The four professional entertain- ment season shows are all basically sold out.

 

2.0     FINANCIAL REPORT

 

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

 

(a)      January Month End

 

Michael Landry pointed out some concerns of the Finance Committee.  The 2004 results show a $206,000 deficit, whereas it was thought to be $140,000.  The Committee also has difficulty with the 2005 budget, and felt it to be unrealistically aggressive.  It was their suggestion that it be re-examined.  The January figures, however, are better than expected.

 

David Scott explained the expense overages and revenue shortfalls.  The unexpected expenses included an increase in full-time salaries, the printing of stationery for the 20th Anniversary, sponsorship promotion expenses not budgeted for, and building maintenance, including the repair of the bar fridge.

 

He went on to say that the budget process started in late summer, and the budget was approved in early February.  The theatre took back the responsibility of soliciting sponsors and recognition costs.  The artist fees were based on a budgeted capacity of 89%, but only 83% was achieved.  This translates into a loss of $45,000 in ticket sales.  The summer camp enrolment was lower than expected.  Some funds earned in 2004 were moved to fiscal 2005.  Ticket handling charges were down due to the reduction in ticket sales.  More renters chose not to issue tickets.  Such items all add up to a $93,000 variance.


Second Markham Theatre Board Meeting - 2005,

February 28th, 2005,

Page 3.

 

          In response to questions by Michael Landry, David Scott said that the camp enrolment problem has been resolved.  The Contact Centre is now aware of the program and won’t be referring calls elsewhere.  They are, in fact, taking applications prior to the summer guide being published.  With regard to the ticket handling charge, there has been a new charge put in place if users choose not to use the box office for tickets, however, it does not cover the difference.  The rental fee structure is close to the point were people don’t want to pay any more, so we are trying not to introduce more fees.

 

          Alex Chiu wondered why the Call Centre was taking summer camp registrations, rather than the theatre.

 

          David Scott explained that the Call Centre is the registration centre for all the town’s programs.  The issue was addressed and resolved.

 

          David Banfield felt the results to be disappointing, as they had been monitored as late as November.  He thought the budget would be met.

 

          Brian Harvey added that the concern is it could happen again, due to the aggressive budget for 2005.  We rely on forecasting but couldn’t forecast some of the gaps.  He wanted it formally recognized that the Board is concerned with the 2005 operating budget, and that they feel that the targets contained therein may not be achievable.

 

          Frank Scarpitti questioned the specific projection concerns, and who had submitted the budget figures.

 

          David Scott said that the bottom line is very tight.  The increased costs have to have offsetting revenues.  Staff salaries have increased by 3.5%.  He had some input into the budget during the early stages, but then it was taken out of his hands.  He only saw the final format after it had been approved.

 

          Michael Landry pointed out that the Finance Committee had looked at the figures and said they wouldn’t have accepted them.

 

          Brian Harvey admitted that there will be pressures throughout the year.  There are some upsides but overall, meeting the budget will be a challenge.

 

          Genny Landis didn’t see the budget as a big concern.

 


Second Markham Theatre Board Meeting - 2005,

February 28th, 2005,

Page 4.

 

          David Scott noted that sponsorship, for example, has been increased by $25,000.  Realistically he doesn’t think this can be achieved.  The dollar value of ticket sales is up by 6%.  Almost half of the budgeted amount in ticket sales have been sold, but there is no way of knowing what will happen in the fall.  The grant program has been discontinued so there will be no more grant monies available.  Furthermore, there is a potential for a school board strike.  If there is a work-to-rule campaign, May and June events will be cancelled and we will only be able to recoup the base rental rate.

 

(b)      January  Comparative Statistics

 

          David Scott advised that the statistics are still being monitored.

 

3.0     MANAGER’S REPORT

 

3.1     P.E.S. Sales Update

 

          David Scott reported that spring ticket sales is at 83% of capacity, and at 86% including complimentary tickets.  The current 2004-2005 average for the season is 84%.  We have never hit $624,000 in ticket sales, but are half way there to date.  The biggest risk is the professional entertainment season.  Artists have to be paid whether they sell out or not.  The format has been changed in order to try and reduce the risks involved.  There will no longer be any formal series, with everything now being “Choose Your Own”.  The number of perfor- mances have been adjusted, with some options to add extra shows.  The ticket handling charge has gone from $2.50 to $3.00, and this will be part of the advertised price.  The prime seating area will be enlarged by 30 seats, with tickets being an average of $4.00 higher per prime seat.  The processing deadline for renewing subscriptions has been revised.  There are fewer family and theatre shows because both traditionally loose money.

 

          He went on to explain how ticket prices were arrived at for some of the fall shows.  This enables him to figure out ahead of time what will be loss leaders and what the market will be.  He also tries to budget so that any sponsorship is a bonus over and above what we actually make.  There is also a profit loss on subscription discounts.

 

3.2     Proposed 2005-2006 Professional Entertainment Season

 

          David Scott explained that there will be a lot more shows on Fridays and Saturdays than before.  There are only three more to confirm.

 

          George McKelvey wondered who negotiates the block bookings.

 

          George Scott replied that C.C.I. has a person on staff to do the negotiations, otherwise we would never have been able to book Bruce Cockburn on our own.


Second Markham Theatre Board Meeting - 2005,

February 28th, 2005,

Page 5.

 

          Evelyn Bailey asked for a status update on the Mayor’s Dinner for the Arts.

 

          David Scott advised that Strategic Services had met with the Mayor and Jim Sales, but no decision has been made on whether it will be for the arts.  Proceeds may go elsewhere.

 

          Jim Jones felt there was no need to be dependent on the Mayor.  The theatre could hold it’s own fundraiser.

 

          David Scott reminded the board members that the theatre had partnered with the Markham-Stouffville Hospital to hold the “Body & Soul” event.  This would be another impact on the budget as there has been no money set aside for an event.

 

          Evelyn Bailey pointed out that since the theatre sold most of the tickets anyway, perhaps there shouldn’t be a partner.

 

          David Banfield agreed, adding that the theatre did all of the work to create the event but a large part of the proceeds went elsewhere.

 

          David Scott wondered if Bruce Cockburn would be a good enough draw to market as a fund raising event.  We will, however, have to await a final decision on the Mayor’s Dinner.

 

          Genny Landis reminded them that partnering with another charity has been mentioned in the past.  It would be nice to have our own theatre event like the wine tasting that the museum holds. There needs to be some kind of continuity.

 

          Evelyn Bailey offered to follow up with ideas.  She also suggested using up and coming artists through the “Celebration of the Arts” program.

 

          Brian Harvey recommended that the cost of holding such an event be examined.

 

          Jim Jones felt that moving the event from the hotel to the theatre was logistic- cally sound.  He thought the money should go to a new building fund or for new equipment.  There is no reason why they shouldn’t be able to raise a couple of hundred thousand dollars in revenue.  He wondered when a decision would be made.

 

          David Scott replied that he would either ask Stu Taylor to attend the next meeting, or he would have an answer by that time.

 

          George McKelvey thought that if a dinner/theatre performance was to be held, it would be difficult to prepare for it now, but it could be done next year, giving us sufficient time to prepare.

 

          Alex Chiu suggested the formation of a Fundraising Committee.


Second Markham Theatre Board Meeting - 2005,

February 28th, 2005,

Page 6.

 

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 advised that they had agreed on the software options.  The data base needs to be streamlined.  She felt it is difficult to obtain new sponsors with the current sponsorship levels.  They want to make it as attractive as possible.  They have discussed the possibility of a VIP package with two seats to a high profile show, dinner and overnight accommodations.  There has to be support from partners, however.  There is also a plan to use one of the April profess- sional season shows for a sponsor evening. David Scott and Wendy Woof-Severn would be dealing with the current sponsors.

 

          Michael Landry wondered who would be getting the new database program up and running, and when.

 

          Jim Jones replied that it could be ready in as little as a month.  Once it is up and running, it would be possible to add the art gallery information.

 

6.3     Future – David Banfield, Chair

 

          The Future Committee had nothing to report at this time.

 

7.0     OTHER BUSINESS

 

8.0     DATE OF NEXT MEETING

 

Monday, April 4th, 2005, 5:30 p.m.

Canada Room, Markham Civic Centre

 

9.0     ADJOURNMENT

 

There being no further business, the meeting adjourned at 7:00 p.m.