Proposed Ticketing Fees and Charges for the Blue Mountains Theatre

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1 Proposed Ticketing Fees and Charges for the Blue Mountains Theatre The proposed ticketing fees and charges for Blue Mountains Theatre are currently on Public Exhibition until Thursday 10 December You are invited to have your say on the proposed fees and charges by placing a formal submission. This can be done by the following methods: Via the submission form on the website bluemountainshaveyoursay.com.au In writing to: Tim Smith, Manager Blue Mountains Theatre & Community Hub Locked Bag 1005 Katoomba NSW to: Tim Smith trsmith@bmcc.nsw.gov.au The deadline for submissions is 24 December 2015.

2 ITEM NO: 14 SUBJECT: PROPOSED TICKETING FEES AND CHARGES FOR THE BLUE MOUNTAINS THEATRE FILE NO: F / Delivery Program Link Principal Activity: Looking After People Service: Blue Mountains Cultural Centre Recommendations: 1. That the Council approves for public exhibition the proposed fees and charges for the ticketing services at the Blue Mountains Theatre and Community Hub; and 2. That the Council notes that the fees are structured in recognition of the nature, scale and quality of the new facility and to reflect cost recovery; and 3. That the Council endorses the proposed fees and charges be publicly exhibited for a period of 28 days in accordance with Section s610f of the Local Government Act 1993; and 4. That the Council receives a further report following the public exhibition period and consolidation of any submissions. Report by Director, Development & Customer Services: Reason for report This report seeks Council endorsement for the proposed fees and charges for the Blue Mountains Theatre and Community Hub, specifically regarding the ticketing system for theatre events. Background The Blue Mountains Theatre and Community Hub (the Hub) at Springwood is now fully operational and programming numerous professional and amateur productions in the theatre space. As a professional space, the Hub provides the service of managing ticketing for performances. This service includes online, over the counter and phone sales utilising cash, eftpos and creditcard facilities. Booking changes, refunds, group sales and promotional discounts are also managed through this service. The aim is that all ticketing for the facility will be conducted by the facility to reduce patron confusion and inconvenience and provide one central location for all ticket sales for events held at the Blue Mountains Theatre. The proposed fees and charges structure relating to ticketing services has been developed to reflect industry standards and similar charges levied by comparable community theatre and performing arts spaces throughout NSW

3 Guiding Principles for Setting Fees and Charges The Blue Mountains Theatre and Community Hub will operate on a cost recovery basis, while balancing the needs of Not for Profit community groups, and in particular: 1. The proposed fees and charges structure abides by the Council s current Pricing Policy for Fees and Charges. 2. The fees and charges structure includes a market rate component to ensure the best cost recovery to the Council in operating the facility. Proposed Fees and Charges for ticketing services: The table below sets out the various charges for ticketing services provided by the Hub. Rates for subsequent years will be reviewed as part of the Council s annual budgeting process. CHARGE NFP COMMERCIAL Inside ticket charge (levied on hirers) ticket value $16 and $2.50 $3.80 greater * Inside ticket charge (levied on hirers) ticket value below $1.50 $2.50 $16 * Booking fee (levied on patrons) $3.30 $3.30 Complimentary ticket issue (levied on hirer) $1.10 $1.10 Event set-up fee NIL NIL Changes to event after on-sale date $55 $55 Refund / exchange fee (at discretion of management) $2.20 $2.20 Lost ticket reprint request / per ticket fee $2.20 $2.20 Mail tickets fee (registered post) $5 $5 * In the event of an event cancellation, the inside ticket charge will be retained by the venue to cover administrative costs Fees Notes The fees displayed in the above table include GST. These are the fees that will impact groups hiring the theatre for ticketed events and will be the drivers of any submissions about the fees on exhibition. Fees minus GST will reflect the true income for ticketing services for Council. The Not-for-Profit (NFP) rate is calculated at a reduced value, reflecting a subsidised service provision. Ticketing fees reflect the human resource demands, software, hardware and disposables required to effectively provide a quality ticketing service for the benefit of both user groups and patrons. Inside ticket fee - This fee covers the costs relating to setting up the event in the box office system, facilitating sales transactions over the phone, in person and online; hard costs, such as per ticket fee to Box Office software provider and provision of sales reporting and detailed settlement report. Booking fee - This per transaction fee reflects the cost recovery relating to creditcard transactions and will be levied on all transactions that utilise this method of payment over the phone, internet and in-person. Cash transactions or eftpos will not incur this fee. Public Exhibition In accordance with Section s610f of the Local Government Act 1993, all fees and charges managed by the Council must be publically exhibited to enable public input into the direction of the Council on the matter. The minimum period of such public exhibition as specified within the legislation is 28 days. It is therefore proposed that these draft Fees and Charges be publically exhibited for a period of 28 days from 12 November to the 10 th of December

4 Key user groups for the facility will be notified about the new fees on exhibition. After the completion of the public exhibition period the draft Blue Mountains Theatre and Community Hub Fees and Charges for Ticketing Services will be brought before the Council for further consideration. Sustainability Assessment Effects Positive Negative Environmental Social The professional management of ticketing services at the Hub will ensure a seamless system for all events and provide patrons with access to multiple ways of purchasing tickets for their preferred shows from a single agency. The proposed level of subsidy for Not for Profits supports the Councils strategic objectives of promoting participation in our creative and cultural programs. Economic Governance By introducing standardised ticketing fees for shows the Hub will be brought into line with similar theatre and performance spaces throughout NSW. The proposed ticketing fees will enable the ticketing system to operate on a cost recovery basis, whilst making some allowance for subsidisation of not for profits. Ticketing fees are within industry standards and in many cases below similar theatre and performing arts venues. Public exhibition of the draft fees and charges for the new facility ensures compliance with the Local Government Act. Financial implications for the Council The addition of the proposed ticketing fees will promote cost recovery of ticketing services whilst providing for transparent implementation of proposed subsidisation for Not for Profit organisations. Legal and risk management issues for the Council Due to the more operational cost recovery focus for the Hub, there may be some negative response from community groups as ticketing is centralised at the Hub and fees are charged. The Hub theatre replaced a hall for hire style theatre space where user groups managed their own ticketing. The introduction to a more centralised and professional system is a significant change to the old system. That said, the additional benefits and services provided by the Hub ticketing system will significantly increase ticket sales and the benefits will far outweigh the fees levied. The Council did an extensive review of comparable facilities across NSW which indicates that the proposed ticketing fees are broadly consistent with these other facilities. External consultation Placing the new fees and charges on public exhibition ensures the Council s Fees and Charges comply with Local Government Act 1993 requirements. The Council has also

5 liaised with the previous regular hirers of the rationale and policy position of the new fees. Further dialogue with key stakeholders is likely to occur during exhibition and these comments will be reported back to the Council. Conclusion It is recommended that the draft fees and charges for use of the new Blue Mountains Theatre and Community Hub, as outlined in this report, are approved for public exhibition for a period of 28 days. The fees are structured to recognise the need for a single-point, high quality ticketing system at the Hub and reflect a cost recovery approach, while balancing the needs of Not for Profit community groups. It is proposed that the Council endorse the proposed fees and charges be publicly exhibited for a period of 28 days from 12 November 2015 until 10 December 2015 with a further report to Council following the public exhibition period and consolidation of any submissions. * * * * * * * * * *