98-19 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
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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