Sunset Cultural Center, Inc.: Annual Public Meeting

HIGHLIGHTS OF THE SUNSET CULTURAL CENTER, INC.'S ANNUAL PUBLIC MEETING
Saturday, April 1, 2006 at Carpenter Hall, 10:00 A.M.

Present:
Six Sunset Cultural Center, Inc. (SCC) Board of Directors
Chair Perry Walker, Treasurer Sarah Brown (Accounting & Finance), Michael McMahan (Governance), Demi Briscoe (Human Resources), Jim Price (Building & Grounds), Katherine Bucquet (Leases) and Executive Director Jack Globenfelt.

Absent:
Three SCC Directors
Vice Chair Fred O'Such (Marketing), Secretary Karen Kadushin, Steven Hillyard.

In Audience,
Present:
One City Council Member, Mayor Sue McCloud

Absent:
Four City Council Members; Councilwoman Paula Hazdovac, Councilman Gerard Rose, Councilman Michael Cunningham, Councilman Erik Bethel.

Format of Annual Public Meeting:
Chair Perry Walker gave a brief introduction; presently SCC is in the second year of our three year contract, SCC is "learning to run the theater," SCC's mission is to maximize potential of theater for "patrons of Monterey County and beyond." Then Walker solicited questions from the audience of about 28 people.

Audience comments included:

1. Carmel Opera Festival representative recalled contacting Executive Director Globenfelt in January 2006 through SCC web site and never received a response.

2. Friends of Sunset long-time volunteer voiced amazement that in 2 years SCC has not addressed rate structure for rental rooms for not-for-profit organizations vs. for-profit groups.

3. Member of the public expressed concern that since the City has problems with open government (as reported in the 2005 Monterey County Civil Grand Jury Report), citizens are denied complete SCC financial reports.

Responses from Chair Perry Walker:

1. On a trend line of reducing the city subsidy to operate Sunset Center.

2. SCC views the Sunset Center theater as a "regional theater."

3. SCC's mission is to establish the Sunset Center theater as a "Brand;" a brand associated with "premier," quality performing arts performances.

4. Sunset Center theater is a "difficult venue to book" because it is so expensive as a 718 seat theater.

5. Some performances are sold out (ex. Lily Tomlin, The Tempations), while other performances attract 200 people.

6. Sunset Center performs art, does not create art.

7. Conventions, "not practical;" conferences o.k.

8. Vision for Box Office ticketing for all presenters not realized ie. Many presenters sell tickets to their patrons directly.

9. SCC Web Site: 8000 visits (of 3-4 minutes/visit) per month and a 1000 person e-mail list.

10. 14% of total tickets purchased are by Carmel-by-the-Sea residents.

11. By June 30 2007 (end of first 3 year contract), SCC renegotiates contract with City and Sunset Center Union Employees.

Final Thoughts:

SCC Board of Directors and Executive Director gave no formal presentation to the public ex. No power point presentation on the past year, future expectations, etc., no written material on past year, etc. provided to attendees. Ergo, for the one and only public meeting of the year, there was evidence of a lack of preparation and thought by the SCC Board of Directors and the Executive Director. Hence, a lack of respect for the public's right to be informed about Sunset Center operations under SCC management was shown by the SCC Board and the Executive Director.

Repetitive Mantra by Chair Perry Walker, Michael McMahan and Treasurer Sarah Brown; Achieving our goal of reducing the subsidy from the City.

Actual Record:
FY 2004/05 (SCC's first year of management):
$762,000 (4 quarterly "Enabling Grants")
$105,000 (Start-Up Grant for Web Site, Box Office Ticketing, etc.)
Total City Subsidy: $867,000
Plus $120,000 "Working Capital Advance" (Treasurer Sarah Brown confirmed that SCC does not intend to use any of loan and SCC will pay back loan by end of third year ie. June 30, 2007.)

FY 2005/06 (SCC's second year of management):
$772,000 (4 quarterly "Enabling Grants")

Note: SCC's claim that the City spent $806,000 for the Sunset Center in FY 2003/04 is not an actual figure based on the City's FY 2003/04 audit, rather it is an SCC "estimate." (Source: W. Craig Robertson, Director of Finance & Administration, Sunset Cultural Center, Inc.)

Reflecting on the SCC Annual Public Meeting, I am reminded of a statement in the 2005 Monterey County Civil Grand Jury Report: "Whether or not the public interest is being subverted through any covert process may be immaterial if the public has the perception their interests are not represented and outcomes are predetermined."

It is my impression that the Board of Directors and the Executive Director, at times other than at this public meeting, are aloof, non-responsive and unaccountable for their actions to the public. Moreover, their lack of complete disclosure and candidness does not portend well for the future.

RECOMMENDATION: At the third Annual Public Meeting in 2007 the SCC Board of Directors and Executive Director should make a formal presentation to the public covering FY 2004/05 and FY 2005/06, FY 2006/07, future expectations, etc. This approach would succeed in not only informing the public about SCC management operations, but it would demonstrate a recognition and commitment to the public/not-for-profit organization partnership that is now Sunset Center.