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Home My WebLink About98-19 Resolution No. 98-19 RESOLUTION AUTHORIZING EXECUTION OF A SERVICE AGREEMENT WITH THE ELGIN SYMPHONY ORCHESTRA ASSOCIATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Kevin Kelly, Mayor, and Dolonna Mecum, City Clerk, be and are hereby - authorized and directed to execute a service agreement on behalf of the City of Elgin with the Elgin Symphony Orchestra Association for youth programming and general operational support, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: January 28, 1998 Adopted: January 28, 1998 Omnibus Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk i SERVICE AGREEMENT THIS AGREEMENT is made and entered into on this 3'J day of {ci.-i a . , 1998, by and between the ELGIN SYMPHONY OR ESTRA ASSOCIATION, a not-for-profit organization (hereinafter referred to as the "ESO" ) and the CITY OF ELGIN, Illinois, a municipal corporation (hereinafter referred to as the ' CITY" ) ; and WHEREAS, the City of Elgin, Illinois has determined it to serve a beneficial public purpose to maintain the Elgin Symphony Orchestra as the largest cultural organization in the Fox Valley and as Illinois ' largest symphony outside the City of Chicago; and WHEREAS, the City has further determined it to serve a beneficial public purpose to assure that its youth are extend- ed a diverse offering of stimulating activities which provide potential life-long benefit; and WHEREAS, the Elgin Symphony Orchestra sells 10, 000 tickets each season to residents of Elgin, and further draws 15, 000 ticketed patrons into Elgin each season; and WHEREAS, the ESO provides 10, 000 students each season with stimulating musical experiences . NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows : 1) The City shall pay to the ESO the sum of $150, 000 on or before January -2-1, 1998 . 3� 2) The ESO shall address all initial inquiries and requests made pursuant to this agreement to City' s New Century Partnership Director . 3) The ESO shall apply $75, 000 of the aforementioned $150, 000 to Youth Initiatives . In exchange, ESO shall provide youth programs, including, but not limited to, Petite Musique, Elgin Financial Center Kidz Konzerts, In-School Music Program, Apprentice Program, and the Home School Subscription series . 4) ESO shall apply $30, 000 to office and salary expenses related to their location at 20 DuPage Court, including the box office . In exchange, ESO shall maintain and operate a box office in the center city area throughout the year. 5) The ESO shall apply the additional $45, 000 to general operational expenses . 6) The ESO shall provide a written report detailing the disbursement of $150, 000 . This report shall be submitted by September 30, 1998 to the Elgin City Council and shall include, but not be limited to, a summary of public performance offerings, gross tickets sold, activities offered for youth, attendance numbers for said activi- ties, and a breakdown of $40, 000 in office expenses . 7 ) The ESO shall be granted an additional 10% discount on Hemmens usage fees, including hall rates, labor and equipment charge, should it hold more than 15 performanc- es in a calendar year at the Hemmens Cultural Center. 8) The City shall have the right to review all accounting records related to the use of the $150, 000, given 72-hour notice, and at a time agreed upon by both parties . 9) The ESO shall indemnify and hold City harmless from and against any and all claims for damages, suits, causes of action or any and all other liability which may arise out of or in connection with the performance of this agree- ment or other operations as a result of any negligent actions by the ESO. 10) This Agreement shall be in full force and in effect from January 1, 1998 through December 31, 1998 . i IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date and year written above . CITY OF ELGIN, a municipal corporation R BY A� - Kevin Kelly Mayor Attest : City Clerk ELGIN SYMPHONY ORCHESTRA ASSOCIATION, a not-for-profit corporation BY Michael Pastreich. Executive Director -�: City of Elgin Agenda Item No. January 8, 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT : Elgin Symphony Orchestra Support and Purchase of Service Agreement PURPOSE the purpose of this memorandum is to provide information to the Mayor and members of the City Council to consider a Purchase of Service Agreement with the Elgin Symphony Orches- tra (ESO) for youth programming and .-general _ operational support . BACKGROUND • The 1998 Budget includes $150, 000 for ESO support, with $115, 000 from the Riverboat Fund designated for ESO support and youth initiatives and $35, 000 from the General Fund Cultural Arts Commission budget. At their January 12 meeting, the Cultural Arts Commission will be considering the expendi- ture of $35, 000 from their General Fund budget to support ESO operations . The ESO is the largest orchestra in the state outside of the City of Chicago. With over 25, 000 tickets sold each year to a variety of concerts, the presence of ESO in the community helps establish Elgin as a regional center for the performing arts . ESO estimates that approximately 10, 000 of these patrons are from Elgin, with another 15, 000 being drawn from outside of Elgin. In addition to these programs, ESO, in partnership with the City, has provided a variety of programs to school children in Elgin (i. e. , Petite Musique, Kidz Konzerts, In-School Music Program, Apprentice Program, and a new Home School Subscription series) . ESO' s commitment to the Elgin community is apparent through the continued use of the Hemmens Cultural Center as the symphony' s home base and the move of ESO' s executive offices to downtown in August, 1996 ., A Purchase of Service agreement has been drafted by the ESO Executive Director and City staff for City Council considera- tion. The agreement is designed to establish the public • purpose for City 'support and provides a mechanism for ESO' s accountability for the use of public funds . ESO has prepared a report to the City detailing the use of the $150, 000 funding in 1997 . Also included in the agreement is a provision i ESO PSA January 8, 1998 Page 2 granting an additional 10% discount for Hemmens usage, if ESO uses the facility more than 15 times in a calendar year. This provision provides an incentive to ESO to continue to utilize the Hemmens as their home base . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED The proposed agreement was drafted in conjunction with the ESO Executive Director, Michael Pastreich. t FINANCIAL IMPACT Total funding of $150, 000 is located in the 1998 General Fund and Riverboat Fund budgets . The Cultural Arts Commission has recommended using $35, 000 of their allocation from the General Fund budget (account number 010-1902-709 . 80-10) . The River- boat Fund (account number 275-0000-791 . 80-11) contains the remaining $115, 000 for ESO support and youth initiatives . Sufficient dollars exist to fund the PSA with the ESO. LEGAL IMPACT None . • ALTERNATIVES The City Council could approve the agreement as drafted, edit the agreement or decline to provide support to ESO. RECOMMENDATION It is recommended that the City Council approve the Purchase of Service Agreement with the Elgin Symphony Orchestra . Respectfully submitted, Eric S . Stuckey Budget Director/Public Information Officer 9Jycde A. Parker City Manager amp Attachments • Elgin Symphony Orchestra • 20 DuPage Court, Elgin, IL 60120-6424 • Phone (847) 888 - 0404 Fax (847) 888 - 0400 Robert Hanson - A1«sic Director Michael Pastreich - Executive Director John T. Snow - President Report to the City of Elgin Disbursement of$150,000 $75,000 Youth Initiatives Petite Musique 16,886 Kidz Konzerts 25,673 Family Concerts 20,126 In School Music Program 997 Portion of Operations & Education Dir. Salary 11,318 Total 75,000 $30,000' Box Office (office and salary xpenses) Box Office Coordinator 20,000 Payroll Tax 1,538 Ticketing Software System 6,072 Software Support Fee 1,540 • Software Training 850 Total 30,000 $45,000 General operational expenses The contract between the Elgin Symphony Orchestra and the City of Elgin erroneously lists the general operational expense portion as $35,000 (which you will note does not bring the total to $150,000). However, the ESO's general operational expenses do in fact exceed the $45,000 necessary to total $150,000. Summary of Public Performances For a summary of the Elgin Symphony Orchestra's public performances during the 1996-97 Season, please refer to the enclosed brochure. The ESO also performed a large number of educational programs and several-concerts in the park, including the opening of the Elgin Fine Arts Festival. Gross Tickets Sold Classic Series 9,382 Pops Series 3,327 Family Series 1,122 Holiday Concerts 2,006 Activities Offered for Youth Attendance Kidz Konzerts (6 performances) 7,320 Petite Musique (4 performances) 2,600 Home School Student Program 111 In School Music Program - 4 performances