Memo- HCA Non-Profit Organization Discussion
M
~mo
To:
From:
Honorable Mayor and Members of the City Council
Jay Strachota, Facilities Manager rftD
09/03/99
Dat :
C py:
Re:
Operations Board Members
HCA non-profit organization discussion
At the September 1998 Operations Board meeting the topic of a merged organization
between HAAA and the HCA was first discussed by the Board. From that meeting a
committee was formed to explore the concept of bringing the HCA and HAAA together in an
arrangement that would be beneficial to the Arts Center, HAAA, and the community. Since
that September Board meeting a year ago, the following have taken place to bring the
concept of a new non-profit organization, associated with the Arts Center, to the point of
presenting it to the City Council.
Surveys- A formal survey was conducted via telephone with the following arts facilities and
organizations:
Bloomington Arts Center
Orchestra Hall
Myles Reif Performing Arts Center
Compass & United Arts
T. B. Sheldon Theater
Phipps Center for the Arts
Chaska Arts Council
Edina Arts Center
Meetings: The merger Committee met biweekly for 4 months and the Operations Board
and the HAAA Board have acted on the new organization concept at monthly meetings.
The groups involved have been careful to achieve consensus on issues relating to the new
organization. The Operations Board, HAAA, and the Tenants of the HCA all feel strongly
that to succeed all parties must agree and be comfortable with decisions made along the
way.
. Page 1
Options: The Board discussed and researched other organizations, options were explored
and considered for non-profit formation, staffing, merging, funding and so on.
Opinions: The concept of a non-profit programming organization for the Arts Center has
been discussed with the City Attorney and an attorney that set up a similar non-profit
organization for the State and Orpheum theaters. The attorneys agree that this concept is
similar to what other organizations have done and the concept of a non-profit organization
performing the programming function of the HCA, for the City, should be workable.
The Operations Board and Staff are now to a point where they feel comfortable presenting
the non-profit concept to the City Council. The new non-profit organization will increase the
amount of contributed revenues flowing into the HCA, eliminate the competition for
resources between HAAA and the HCA, and eliminate the confusion the public experiences
when they perceive the HCA to be HAAA, or vise versa. Attached to this memo is a table,
which outlines the proposed responsibilities of the City Council, the Non-Profit, and Staff in
this new arrangement. At the September 14 Council work session, Staff will give an
overview of the new organization concept and then the City Council and Operations Board ,
will discuss the responsibilities listed on the attached table. The Operations Board is looking
forward to the discussion with the City Council and is seeking the Councils approval to
proceed toward a formal agreement with the City and the new non-profit.
Page 2
Responsibilities of the City Council, Non-Profit Board, and staff, within the new
organizational structure.
Responsibil Council Non-Profit HCA Staff City Staff
ities
Policy Policy and Policy and planning directly Develops policy Directs HCA
& planning relating to related to programming, and planning as staff on City
Planning facility mgmt., membership and non-profit directed by policy and
personnel, Tenant management issues. council and non- planning.
leases, existing profit.
capital campaign,
City government
and ordinances.
Fi nance- Facility budget, Payment of profit distribution Prepares facility Employs HCA
General existing capital amount to Facility budget (City). budget for staff, continues
campaign, Tenant Fiscal management of the non- council approval. to provide
lease revenue, profit. Prepares non- current finance
capital profit budget for services offered
improvements and non-profit to other City
equipment approval. departments
re lacement
. Tenant lease and Divides year-end profits from Manages tenant No direct
Inance-
Programs, payments and earned and contributed and occasional responsi bil ity,
Rentals, interest earned go revenues, equally between HCA user payments. monitor budget
Donated directly to HCA operations budget (City), capital Works with City versus revenue
Revenue operations improvement fund (City) and and Non-profit to production.
budget(City). non-profit organizations program maximize return
development fund. Occasional on leases,
user fee collected by non-profit programs and
and redirected to operations contributed
budget (City), less 10% to non- revenues.
profit organization. Rental rates
established b non- rofit.
Programs, No direct Management responsibilities for Administrates Supervises staff
Rentals, responsibilities for programming and rentals. No programming as and directs
& program and responsibility for tenant leases. directed by non- Council in
Lases rentals. Directly profit. tenant lease
responsible for Administrates matters. No
tenant leases. tenant leases. direct
programming or
rental
res onsibilities
Supervises staff Supervises and evaluates Staff Reports to City Supervises
through City on all matters relating to non- Manager and Non- and evaluates
Manager on tenant, non-physical plant Profit Board as Facilities
matters activities such as, programming, defined in the Manager on
concerning: non- fundraising, marketing, as management City issues.
profit revenue outlined in management agreement. This
distribution to City, agreement. agreement will
tenant leases, define the specific
facility budget, and responsibilities of
physical plant each party.
issues
Physical Approves No direct responsibilities. May Recommends Supervises
Plant equipment recommend equipment equipment Facilities
replacement and replacement or capital replacement, Manager in
capital improvement. capital physical plant
improvements and improvements and needs and
maintenance as supervises daily assures in-
part of City budget physical plant kind
needs maintenance
services by
Cit
Support the efforts All marketing of programs as Administrate Provide
of the non-profit events as well as general marketing efforts support
and act as marketing of the HCA as a of the Council and through City
ambassadors for destination non-profit media tools
the HCA
Fund- Completion of the Management responsibilities for Administrates Administrates
raising existing capital programming, memberships and fundraising and existing capital
campaign. Assists fundraising. Assists with existing membership campaign
with operations capital campaign program for non-
fundraising profit. Assists with
existing capital
earn ai n