Alternate, Alternate Resolution for Overture

And SCFL (South Central Federation of Labor) approves . . .

This came out late Wednesday . . .

From: Schmidt, Chris
Sent: Wednesday, November 24, 2010 5:08 PM
To: ALL ALDERS
Cc: Cieslewicz, Dave; Piraino, Janet; May, Michael; Kristin Czubkowski; Media, Dean Mosiman, WSJ; Jennifer McCulley; ‘Joe Sensenbrenner’
Subject: Draft Alternate Resolution: MCAD ownership of Overture

Dear Colleagues,

Attached please find (yet another) alternate resolution regarding the Overture Center’s future. This draft arose out of a discussion between Alder Bidar-Sielaff and I as to how MCAD is addressed in the models we’ve discussed to date. After reviewing the creation and purpose of MCAD, it seemed as though proposing that a “rebooted” MCAD could function as the owner/operator of the Overture Center should be on the table for consideration. This resolution is not as specific as some of the amendments to Alder Clear’s resolution, but we felt that several of those issues, such as a community process, could be discussed separately from the main issue, which is using MCAD as the public, transparent entity to run the Center as it should have been from the start. Notwithstanding the issue of the debt, it is important for us as policy makers to step back and look at the model that will work best for the citizens of Madison, Overture, and its staff. We do ourselves a disservice if we ignore the parallels between MCAD and, for example, hospital authorities such as the one that runs the UW Hospital. Those entities are able to provide substantial operating and capital support as well as guidance for the ongoing operation of the hospitals they serve.

thank you,
Chris

Here’s the resolution:

ALTERNATE – A Public Authority Model – MCAD Owner and Operator

Title: Establishing the Madison Cultural Arts District (MCAD) as the owner and operator of the Overture Center as of January 1, 2012; Establishing a City commitment to future grants to Overture subject to annual appropriation, and setting terms and conditions for such grants

Sponsors: Alder Schmidt and Alder Bidar-Sielaff

WHEREAS, an interest in the long-term success of the Overture Center is shared by everyone in our community, and,

WHEREAS, an agreement was reached between the Overture Center’s lenders and the Overture Parties (not including the City of Madison) to resolve the Center’s remaining debt, and,

WHEREAS, under that agreement, the 201 State Foundation or a new entity would become the operator of the Overture Center facility upon payment of approximately $15 million in gifted funds to the Overture lenders before December 30, 2010, and the City has been informed by the Overture Parties that the debt will be paid by the donors only if the City accepts ownership of the building for $1, and,

WHEREAS, the Madison Cultural Arts District (MCAD) was created under the authority of Wis Stats Sec. 229.842(1) as a quasi-governmental body to ensure public accountability over and public access to the Overture Center, and to develop Block 65 into a world-class cultural arts facility while limiting taxpayer contributions, and,

WHEREAS, no fewer than three currently operating 501 c.3 organizations (201 State Foundation, Overture Development Corporation, and the Overture Foundation) currently have an interest in Overture, creating a complex and unsustainable governance and fundraising structure, and,

WHEREAS, a staffing study recently conducted by the City of Madison showed that the costs of carrying municipal, unionized employees was not a primary factor in the poor financial performance of the Overture Center, as based on an analysis of the alternative provided by the AMS Focus Model, despite claims to the contrary, and,

WHEREAS, the timelines, deadlines, and terms under which Overture decisions have been made in the last ten years have not allowed for an open dialogue and engagement of all stakeholders in order to make Overture an ongoing, sustainable success, and,

WHEREAS, it is critical that Overture have a sustainable, resilient, open, and inclusive plan in place for its future operations,

NOW, THEREFORE BE IT RESOLVED, that the City of Madison appreciates the donors for their generosity in supporting Overture as a vital community asset and for offering to resolve the debt and respectfully requests that they act on their generous offer to settle the Overture’s existing debt, and,

BE IT FURTHER RESOLVED, that the City acknowledges the ownership change of the facility, and, contingent upon the debt on the Overture Facility being fully paid, waives and releases its option to purchase the facility for $1, and,

BE IT FURTHER RESOLVED, that the City will support for Overture in the form of a grant, subject to annual review and appropriation, starting at $2.5 Million (Two Million Five Hundred Thousand Dollars) per year in 2012 and adjusted by the change in Consumer Price Index methodology in the State’s Expenditure Restraint Program each year thereafter, and,

BE IT FURTHER RESOLVED, that the City will provide its ongoing support only if the following conditions are met:
1. MCAD becomes the owner-operator of the Overture Center by purchasing the building for $1.
2. MCAD board members resign and are subject to reappointment, with no guarantee of reappointment.
3. MCAD assumes the employees of the Overture Center as of January 1, 2012, along with their rights to benefits available from the City of Madison, including but not limited to participation in WRS.
4. The MCAD Board shall have oversight over Overture’s budget, and budget decisions shall not be made during closed sessions, except as required by state statute.
5. A Development Committee is established and its relationship to other Overture fundraising entities clearly defined.
6. An annual payment in lieu of taxes (PILOT), starting at $500,000 per year in 2012 and adjusted annually by the same method as the grant described above. In the event that the City grant falls short of the full amount as described above, MCAD may reduce the amount of the PILOT by an amount equivalent to the shortfall.
7. An annual audit is performed by an independent CPA selected by the City and conducted in accordance with GAAP.
8. There is a commitment to an annual plan with objectives with respect to fund-raising, paid attendance, non-paid or reduced price attendance, seats sold, community programs and program diversity.
9. An annual report is provided to the community comparing actual results of the objectives described in the annual plan and identifying causes of any failures to meet those objectives and strategies to meet those objectives in the future.

BE IT FINALLY RESOLVED, that the Mayor and city clerk are authorized to execute any and all documents with 201 State Foundation, Overture Development Corporation, and the Madison Cultural Arts District, all in a form approved by the city attorney, as shall be necessary to accomplish the purposes of this resolution.

And here’s the note from SCFL (four hours later, the evening before Thanksgiving):

From: Jennifer McCulley
Sent: Wednesday, November 24, 2010 9:16 PM
To: ALL ALDERS
Cc: Jim Cavanaugh; Piraino, Janet; Rick Badger; Dode (dode38@sbcglobal.net); Wedel, Alan; Bull, David; Deborah Sproule; Edwards, James; Gotzion, Gregg; Jackson, Walter; McCormick, James; Kief, Lori; Linda Wolfe; Marx, Rick; Mary Knapp; Neis, John; Muetz, Dominic; Pat Miller; Pickell, Davin; Rideout, Kathleen; Rogeberg, William; Seifert, Joe; Seifert, Kenneth; Shawn Bonjour (sbonjour9787@charter.net); Sims, Sheila; Tim Birkley; Campbell, Tom; Wise, David
Subject: Alternate- A Public Authority Model

Dear Alders:

I am pleased to annouce AFSCME Local 60’s endorsement of the Alternative-A Public Authority Model- MCAD Owner and Operator sponsored by Alder Schmidt and Alder Bidar-Sielaff that was released tonight. We are happy to have an alternative that we can support and believe that this is the best solution for the community, Overture, and its employees. We urge you to support this Alternative. I would be happy to discuss our support of this alternative with you at anytime leading into Tuesday’s meeting. Please feel free to contact me on my cell phone at 608-xxx-xxxx.

Sincerly,

Jennifer McCulley
Staff Representative
AFSCME Council 40

Hmmm . . . so, will the rest of the council agree? And what will MCAD/201 say on Monday? Will they be considering it? It’s unclear from their agenda, which was likely made before the resolution came out and they don’t have time to change their agenda. Perhaps its general enough it will be ok.