Questions from Pre-Bid Meeting and Responses

Here are questions received between Sept. 1 and Sept. 8, 2004 on the RFP Submitted with responses and accompanying documents.

Questions and Responses from Pre-Bid Meeting

Questions from David Galligan, Ordway – 1 (and responses)

Questions from Bill Becker, Theatre Dreams (and responses)

Questions from David Galligan, Ordway – 2 (and responses)

Questions from David Galligan, Ordway – 3 (and responses)

Combined Responses

Questions from the Pre-Bid Meeting

September 1, 2004

Response

1. How much money was being rebated through vendors such as Ticketmaster?

See Combined Response 1.

2. Is there a capital fund and is segregated by theatre?

See Combined Response 2.

3. How much money was spent per year on capital expenses?

See Combined Response 2.

4. Are there major capital expenditures beyond the listed items in the RFP exhibit?

The Orpheum terra cotta and brick work is ongoing.

See Combined Response 3.

5. How many can dress in the Pantages dressing rooms?

It can be configured to accommodate upwards of 30 to 40 (although there were over one hundred for one event.)

6. Is the Energy Center split between the Stimson and Pantages?

Yes.

7. Do the air rights run with the Pantages property?

Yes and there is a historic designation on the property.

See Combined Response 4.

8. Is there a phone room for ticket sales at the State?

In the sales office.

9. How big is the State box office?

Three windows plus a manager.

10. Is there office space at the State?

There are six offices in the basement. The main management space is rented elsewhere. Rent is prorated between manager and presenter.

11. How much wheelchair seating is there at the Orpheum?

See the seating plan provided with the RFP.

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Questions from David Galligan, Ordway

Wednesday, September 1, 2004; Sent 4:03 PM

 

1. All maintenance contracts for all three venues.

There is one maintenance agreement. See " Maintenance Agreement – Elevators

2. All preventative maintenance schedules for all three venues.

See " Preventive Maintenance

3. Any and all environmental reports for all three venues.

See Combined Response 5.

4. Specs for the renovation of all three venues.

See Combined Response 6.

5. All labor-related contracts, including employment management and consultants.

See Combined Response 7.

6. Appraisals for all three venues.

See Combined Response 8.

7. Organizational charts indicating both the labor and operations of Theatre Live, Hennepin Theatre Trust, and Historic Theatre Group.

See Combined Response 9.

8. Bids for all capital expenditures.

The awarded bid/contract for the general contractor for the Pantages Theatre restoration project is available for review in the CPED office. No other information is available.

9. The detail listing of all fixed assets owned for each venue with the following information: asset description, date of purchase, depreciable life and net book value.

See " Fixed Assets

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Questions from Bill Becker, Theatre Dreams

Thursday, September 2, 2004; Sent 4:25 PM

 

1. Most recent appraisals

See Combined Response 8.

2. The Official Statement distributed by the underwriters in connection with the $22mm bond offering

Phil Handy sent the Official Statement

3. Phase I Environmental Study any supplemental (e.g., Asbestos O&M Manuals)

See Combined Response 5.

4. Settlements on presentations for the last six months.

See Combined Response 10.

5. Copies of contracts for presentations in the future.

See Announced Shows listing

6. Zoning determination letters and building code correspondence and documents

See Combined Response 4 for information on historic designation. Copies of certificates of occupancy will be made available by September 17, 2004.

7. Engineering studies, including reports on terra cotta

See Combined Response 3.

8. History of capital expenditures

See Combined Response 2.

9. Easements, covenants (in addition to LaSalle) and statutes and regulations specifically pertaining to each of the properties, including particularly historic preservation easements and covenants

There is an easement for the parking area with the Orpheum. Additional information may be provided by September 17, 2004.

10. CAD plans

See Combined Response 6.

11. List of any other plans and schematics

See Combined Response 6.

12. Long term contracts and leases.

There is one maintenance agreement. See " Maintenance Agreement – Elevators

There are not any leases that would be in effect after July 1, 2006.

13. Summary of personnel, including salaries, for personnel

See Combined Response 9.

14. Labor union agreements

See Combined Response 7.

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Questions from David Galligan, Ordway

Friday, September 3, 2004; Sent 2:04 PM

 

1. What invasive tests have been done and can we have the results of all invasive tests that have been done on the physical plants for all three venues? What tests have not been done? When and how can we come in later to do these tests if they have not been done? How do we obtain the American Engineering Testing reports on the three venues.

See Combined Response 3 and Combined Response 5.

2. Please provide the annual production equipment rental budget, both show and non-show related expenses, on all venues.

Refer to the annual audit included in the RFP materials and Combined Response 11.

3. Since Ordway Center ceased programming a unified Twin Cities Broadway season at the Theaters, what has been the subscription base decline year by year beginning in 1996-1997? We assume that this information is available from the Hennepin Theater Trust and/or its predecessor Theater Live!, parties to the Master Use Agreement with the City. It appears that the Master Use Agreement is not presently part of the CPED document/exhibit package on the website. Please provide potential bidders with electronic copies of this agreement, as well as the Professional Management Services Agreement between Theater Live! or its successor Hennepin Avenue Trust and PACE Theatrical Group or its successor Clear Channel Entertainment. These documents should be publicly available either because the City is a party to them, because the City is entitled by contract to ask for them, and/or because Theater Live!/Hennepin Avenue Trust are 501.c.3. organizations operating with the transparency appropriate to their tax exempt status. In addition, please provide a schedule of payments made annually by Theater Live!/Hennepin Theater Trust to PACE/SFX/Clear Channel from the 1996-97 season to date.

Information on the subscription base is not available. The Management Use Agreement is available (see MUA MUA Assignment, MUA Extension

4. We understand there is a Capital Sinking Fund maintained by the City which is available for these theatres. What is the value of the Capital Sinking Fund, broken down by Theatre, and will these resources be available for use in maintaining the Theaters after the selection of a bidder pursuant to this RFP?

See Combined Response 2.

5. Please provide background information for the Capital Improvement Needs schedule (RFP Exhibit 12) such as any back-up support for each of the individual improvement estimates, e.g. bids or quotes from vendors. If bids or quotes were not received, please state how these estimates were arrived at.

This information is not available.

6. How much has the City spent on repair and maintenance work on the Theaters over the last 10 years? We would like the following detail on repair and maintenance broken down by Venue, Description of Work Completed, Year, and Total Dollars Spent.

See Combined Response 11.

7. Please provide the last 5 years’ financial statements that would encompass the entire operating revenues and expenses for each theatre or on a combined basis. If this information is not available, how would a respondent to the RFP get comfort on the completeness of operational information to ensure the best financial proposal can be made to the City of Minneapolis?

See Combined Response 11.

8. Who – the City, manager or another party – has been receiving rebates from vendors, e.g. Ticketmaster? Please list all sources of such rebates. How much is received from each on an annual basis?

See Combined Response 1.

9. In the past, what standards have been used to measure the economic impact of each theater’s activities? Please provide the economic impact broken down by theater (combined if this is not possible) for the past 10 years or such lower number of years as is relevant for the respective theaters.

This information is not available.

10. The RFP requests pro forma information for 10 years or the term of the bonds if leasing or purchasing the theatres, which is the year 2031. It will be difficult to provide pro forma information that is meaningful to the year 2031. How do you suggest addressing this requirement and the reality that reliable pro forma information is difficult once you are beyond a five year period?

State the assumptions used.

11. Please explain the process – political or administrative or both – for making changes in the restoration fees.

In the current arrangement, making changes to the restoration fees is an administrative action.

12. What plans are in place about who will manage negotiating an extension or new agreement when the Local 13 and 490 contracts expire on Dec. 31 of this year?

It is the Manager’s responsibility to negotiate contracts during the term of the contract.

13. If there is a new manager/owner as of July 1, 2006, will it be required to comply with terms and conditions negotiated by its predecessor?

Refer to the labor agreements (see Combined Response 7).

14. Pursuant to question 3 above, please provide a 10-year record of tax-exempt charitable donations made to the Hennepin Theater Trust or its predecessor Theater Live!, summarized by category: individuals, foundations, government, corporations, sponsorships.

This information is not available.

15. Pursuant to question 3 above, please provide a year’s worth of show settlements between the Theater manager and renters of the Theaters as well as settlements between the Historic Theater Trust and the shows themselves.

See Combined Response 10.

16. Please expand on RFP Exhibit 11 to include the prior 5 year period so we have a complete 10 year history of event, attendance and restoration fee history.

The compiled information only includes the prior five-year period as provided in the RFP.

17. Pursuant to question 3 above, please provide the current annual budget and number of FTE staff of the Hennepin Theater Trust and/or Theater Live! devoted to education activities as well as the number of students served (ticketed and non-ticketed), not to include commercial children’s programming such as Dora the Explorer.

This information is not available.

18. Pursuant to question 3 above, please describe the overlap in staffing of the for-profit Historic Theater Group, which is the manager of the Theaters, and the non-profit Theater Live! and non-profit Hennepin Theater Trust, which have been successive parties to the Master Use Agreement relating to the booking of the Broadway subscription series at the Theaters.

See Combined Response 9.

19. For what purpose was the Hennepin Theatre Trust formed two years ago? What was the reason for transferring the City’s Master Use Agreement from Theater Live! to the Hennepin Theater Trust?

See Board Report on MUA Assignment

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Questions from David Galligan, Ordway

Wednesday, September 8, 2004; Sent 12:16 PM

 

1. Has a comprehensive asbestos analysis been completed for the Pantages, State and Orpheum Theatres?  If so, could we get a copy of the report?

See Combined Response 5.

2. Has there been any abatement or encapsulation of asbestos in the Orpheum or State Theatres?  If so, what was done in each of the venues?

See Combined Response 5.

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Combined Responses

1.

The Ticketmaster Agreement is with the City of Minneapolis, and the Theatre Operating Account receives the rebates. The Ticketmaster rebate has accounted for 53 percent of the Theatre Operating Account’s total ticket revenue over the last five years. It has fluctuated from 47 percent to 57 percent depending on theatre ticket sales.

2.

The Capital Fund is not segregated by theatre. The Capital Fund has a current balance of $349,105.22. A total of $57,421.30 has been expended from these funds as follows: ($2,043.54 in 1999, $19,360.66 in 2000, $18,705.30 in 2001, $7,313.80 in 2002, and $9,998.00 in 2003).

Bond funds were used for two projects in addition to the terra cotta work. These projects were for the Orpheum skyway connection in 2001 ($219,386.91) and Orpheum doors in 2002 ($74,222.00).

3.

The original budget for the initial phase of the terra cotta project was $401,190.00. The source was bond proceeds. The project status was documented in January 2004.

The Building Management Report is a guide to the terra cotta. The Building Management Report refers to details found in the Project Manual which is comprised of several files as described below.

The front-end of the Project Manual

There are four large drawing sheets:

There are three sheets that describe the condition at the balcony:
0051R001.pdf

0051R002.pdf

and 0051R003.pdf

Other Balcony files:
0048R001.pdf

0048R002.pdf

The remaining files contain the Detail Sheets.

4.

An overview of the historic designations can be found in the following files:

Historic Designation – cover sheet

Additional information for the State can be found in Historic Designation – State Historic Designation – Orpheum

Additional information for the Pantages can be found in Historic Designation – Pantages.

5.

The environmental reports for the Pantages and Orpheum are available for review at the CPED office. Please contact Jerome Patton (612 673-5181) to schedule a time to review them.

6.

Refer to Handy memo dated September 2, 2004.

7.

See " Labor Agreement – Box Office Labor Agreement – Hair and Makeup Labor Agreement – Stagehands and Wardrobe

8.

There are no appraisals for the venues.

9.

See the manager’s organizational chart.

10.

Revenues due to the Operating Account through the settlement process are reported in the financial data previously provided and in the 2004 budget (see Combined Response 11). Standard Use Rate Schedules are available. Specific event settlements will not be made available.

11.

Refer to the 2004 budget

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Last updated Nov 2, 2011