Staff Report for Town Council
Meeting Date: October 27, 2016
Koka Booth Amphitheatre 2016 Management Plan & Budget
Purpose: Consideration of the Koka Booth Amphitheatre Management Plan and Budget for the 2017 season.
Prepared by: Lyman Collins, Parks, Recreation and Cultural Resources
Speaker: Lyman Collins, Parks, Recreation & Cultural Resources
Recommendation: Staff recommends that Council approve the attached Management Plan and Budget and
authorize staff to make the necessary budget adjustments as outlined to align the Amphitheatre's budget with
the Town's fiscal year.
Executive Summary: Annually, staff presents to Council the Koka Booth Amphitheatre's Management Plan &
Budget as prepared by SMG staff. The Plan summarizes the 2016 season and presents the plans for the 2017
season. The Amphitheatre's fiscal year runs from November 1 to October 31 to align with the primary
presenting season. This staff report also includes the Public Works maintenance and event support budget, as
well as budget requests for special projects. For the first time since the Amphitheatre opened in 2001, the
2016 SMG operating budget is showing a surplus.
Background: For every season since 2005, the subsidy has consistently been lower than
budgeted though there has been a great deal of variance. In 2005 the subsidy was
$224,658 with smaller subsidies each year until 2009 when the subsidy was $82,212.
Since the 2013 season there has been a steady reduction in operating subsidies which has
resulted in the projected operating surplus for 2016:
 2013 - The Amphitheatre performed better than projected. The budgeted subsidy
was $174,488, while the final audited operating subsidy was $150,596.
 2014 - The Amphitheatre improved on the projected subsidy which was budgeted
at $171,242, while the final audited operating subsidy was $119,987.
 2015 – The Amphitheatre produced its strongest season since 2009, as the
budgeted subsidy was $210,434 while the final audited subsidy was $87,092.
 2016 – As described below, the 2016 season produced the best budget
performance to date. The budgeted subsidy was $233,227, while the current
projected end-of-year forecast is for a budget surplus of $41,723.
Note, while the operating budget is projecting a surplus, overall the Amphitheatre is still
subsidized because of Public Works costs, capital equipment purchases and special
projects.
For the upcoming 2017 season, the Management Plan continues with a conservative
approach to budgeting by projecting a subsidy of $161,575, which is the smallest projected
subsidy since 2012 ($168,191 with a final audited subsidy of $101,023). Staff supports
this conservative approach given the ever present unpredictability of programming an
outdoor venue with potential weather impacts, as well as other considerations including the
uncertainty of touring schedules, the overall economic outlook, and other entertainment
options in the region.
Below is a chart that illustrates the Amphitheatre’s financial trends. Note the chart includes
the SMG operating subsidy along with capital expenditures and Public Works regular
maintenance support and special projects.
The other significant item of note is the arrival of a new Amphitheatre General Manager.
After the long-time manager Becky Colwell took a position elsewhere, SMG proposed and
Town staff accepted a new manager, Liz McDonald, most recently working for SMG in
Jacksonville, Florida. Ms. McDonald is originally a native of Raleigh and has had an
extensive career in facility management, theatrical producing, and touring with national
performers. Ms. McDonald began her work with the Amphitheatre on January 5, 2016.
Discussion: As noted above, the Amphitheatre is projecting a budget surplus in the SMG
operating budget for the first time. While most areas of the budget performed better than
anticipated and SMG staff did an outstanding job of reducing administrative costs, the major
drivers of the improved budget were the new Chinese Lantern Festival and the record
number of sell-out concerts this season. Because the Lantern Festival was a new event and
one that was completely new to this area, it was budgeted to break even. As noted in the
Management Plan, it did significantly better than that with a net income to the facility of over
$160,000. Promoted concerts continued to set records with 2016 generating more than
$60,000 in revenue over last year’s record setting season. Overall, with five sell-outs these
concerts generated revenue over $105,000 more than budgeted. Below is a summary of
the significant programming areas with recaps of 2016 and plans proposed for 2017.

Promoted Concerts: The 2016 season marked the eighth year that the Amphitheatre
has contracted with Outback Concerts to be the facility’s preferred promoter. The
agreement called for Outback to promote a minimum of thirteen concerts. Outback
did finalize contracts with thirteen concerts but Ringo Starr cancelled his concert.
Because the concert was cancelled due to factors beyond Outback’s control, SMG
and Town staff considered that the minimum was met. As noted above, revenue set a
record. Promoted concerts are the largest area of generated revenue with almost
$550,000 in 2016. All revenue from the Outback Concerts are presented with no
financial risk to the Town as the promoter assumes all financial liability. Revenue for
the Amphitheatre budget is generated through patron spending. Thanks to the overall
popularity of many of this year’s events for the first time concert attendance was over
50,000 and 18% higher than 2009 when Outback first began promoting concerts at
the venue. For 2016, average attendance was almost 10% higher when compared to
2015, 4,316 this year with 3,979 last year, and almost 10,000 more attendees than
budgeted. SMG proposes continuing to contract with Outback Concerts as the
venue’s preferred promoter with the agreement calling for Outback to promote
thirteen concerts in 2017. As in the past, SMG also requests authority for the Town
to self-promote up to two concerts where Amphitheatre funding would be at risk.
Those concerts are only programmed if Outback fails to provide adequate
programming or SMG and Town staff feel like there needs to be additional diversity in
concerts. Staff supports this approach.

Summerfest: Summerfest with the North Carolina Symphony is the bedrock of the
Amphitheatre season and the impetus for the facility to exist in the first place. This
season marked the sixteenth Summerfest since the facility opened and the thirtieth
Summerfest in Cary. The Symphony continued with the expanded Summerfest, with
two additional concerts centered on two-day festival weekends and a special, standalone concert featuring the Hot Sardines. As approved last year, the funding for this
expanded Summerfest was incorporated in the Amphitheatre’s overall budget
($50,000) with Summerfest budgeted to be subsidized by $27,000. Similar to other
areas of Amphitheatre programming, Summerfest also performed better than
budgeted with an overall subsidy of $21,374 and a small increase in overall
attendance.
The Symphony has again requested additional support for Summerfest of $50,000.
As outlined in the Management Plan, SMG has incorporated that expenditure into the
overall Summerfest budget. For 2017 SMG is again budgeting a $27,000 subsidy for
Summerfest. Staff supports this recommendation. Symphony, SMG and Town staff
are continuing to meet to discuss other ways of offsetting the revenue loss, including
shared sponsorship revenue, ticket revenue sharing and other ways of revenue
recovery.

Additional programming:
o After three years of presenting small-scale dinner theatre on the Amphitheatre
stage, this year SMG recommended re-evaluating theatre programming and
looking to the future for higher level programming. With that in mind for 2017,
SMG is proposing a new partnership with Theatre Raleigh, a company with artistic
director and Raleigh native Lauren Kennedy. Ms. Kennedy has an extensive
Broadway career including roles in Sunset Boulevard and Spamalot among many
others. Working with Ms. Kennedy and Theatre Raleigh, SMG has put together a
proposal to mount the Broadway hit Rock of Ages at the Amphitheatre in
September 2017. Rock of Ages, a popular musical that played six years on
Broadway, is recommended because it has the look and feel of a rock concert
and features hit rock songs of the 80’s. Being a new venture, SMG has taken a
conservative approach to revenue forecasting and budgeting for a $20,000 loss.
Staff supports this approach and also recognizes that the event could perform
significantly better.
o SMG continued to work with a variety of local cultural arts organizations as
detailed in the Management Plan. While these events are not budgeted to
produce revenue (the organizations make up any facility expenses that may not
be covered through ticket sales), in general, they do end up producing small
revenue streams for the Amphitheatre. The Triangle Wind Ensemble returned
with its American Celebration and for the second year, the Cary Music & Arts
Festival featured the talents of various Cary area high schools. Next season, SMG
plans for at least three such events.
o In addition, SMG continued the two small scale series that have become popular
over the last couple of seasons, the Hob Nob Jazz Series in the spring and Pickin’
in the Pines Bluegrass Series in the fall. Both of these series continued to
perform well and exceeded revenue projections by over 14%. As a small scale
event using the Crescent, audiences enjoy a more intimate musical experience
but overall attendance for both series combined was almost 5,000 patrons. For
2017, SMG proposes to continue with both series.
o While the Movies by Moonlight series continued to be popular, for the second
year in a row it did not meet budget expectations. Although the series did cover
its costs, overall attendance was down from the previous year, though two movies
were cancelled due to rain. SMG recommends continuing the series and working
on additional sponsorships to generate additional revenue. In addition, SMG
would continue the Reel-ly Scary Cary Film Series at the end of October. Staff
supports both of these approaches.
o Festivals also continue to be popular Amphitheatre programs. The success of the
new Chinese Lantern Festival has been discussed and the other Town sponsored
festivals (the Dragon Boat Festival, Oktoberfest and Diwali) have also proven to
be very successful such that while in years past these events were budgeted to
breakeven, they are now seen as potential revenue generators. The Diwali
Festival has the second highest attendance for any single Amphitheatre event day
(after the July 4th celebration), with between 12,000 and 15,000 in attendance.
The Chinese Lantern Festival may now claim the overall highest attendance
(52,000 in 2015-16), it takes place over a six week period. The Dragon Boat
Festival, celebrating an ancient Chinese tradition, returned for its third year with
attendance similar to 2015 (7,100). The Triangle Oktoberfest, a collaboration
with area Rotary clubs, returned for a second year. With significantly better
weather conditions than last year the festival grew to over 2,700 attendees, more
than double last year’s number. The other three commercial festivals (Beer-Bacon
Fest, Great Grapes Wine and Music Festival, and Beer-Bourbon & BBQ) all
continued to be popular and revenue generators for the Amphitheatre. With all of
these successes, festivals will continue to be an important component of the
Amphitheatre’s programming.
There were also other factors that should be noted for 2016 that have contributed to the
overall positive trends for the Amphitheatre:

Concession Operations: The 2016 season marked the ninth year that Classic Sports
Catering has provided concession services to the Amphitheatre. Overall revenue from
food and beverage represents a major component of the facility revenue stream as
the third largest source behind event revenue and season tickets and sponsorships.
As seen in the Management Plan, per capita spending continued its positive trend,
increasing in almost every category. There are no major changes anticipated in food
and beverage operations for 2016.

Rentals: Rental revenue continued to be strong and represents an on-going reliable
source of revenue. As with other revenue streams at the Amphitheatre and for the
second year in a row, rental revenue has exceeded its budget projections by over
50%. For 2016, the Amphitheatre hosted fifteen rental events. In addition there were
four Town of Cary event uses. Together these events brought over 19,000 patrons to
the facility.

Ancillary revenue: Ancillary income is generated from Amphitheatre services: ticket
rebates, lawn chair rentals, preferred parking, ATM service charges, merchandise
fees and facility maintenance fees. Consistent with overall Amphitheatre finances for
2016, revenue is up, as would be expected since these fees are largely dependent
on attendance.

Sponsorship & season ticket revenue: Sponsorship revenue remained steady and
met its budget projection while season ticket revenue did not, though all available
mini-packs did sell out. Both of these areas are projected to improve next season.
Sound level considerations:
While not matching last year when the Amphitheatre did not receive any sound complaints,
this year sound was only an issue at the end of the season when 3 complaints were called in
for the ZZ Top/Gov’t Mule concert. That concert, as with all concerts this year, was within
the approved db levels. Outback Concerts is authorized to request up to three concerts
where the 95 dbA sound level may be increased to 98 dbA. This year two such requests
were made and authorized: for the Brand New & Modest Mouse and the Tedeschi Trucks
concerts.
Overall, sound did not appear to be a major concern for 2016. SMG does not recommend
any changes to sound practices for 2016 and staff agrees with this approach.
Other Items
 Social Media: Use of a dedicated Amphitheatre website and extensive use of social
media continued to play a significant role in audience development for the facility.
The Amphitheatre has over 78,000 subscribers to its weekly e-blasts – up from
65,000 at this time last year. Similarly, Facebook likes have increased from 20,513
to 24,533; Twitter followers have grown from 2,792 to 3,532 and Instagram has
more than doubled going from 520 to 1,267 followers.

Volunteer service: The Amphitheatre has a dedicated volunteer base that provides
significant service to the facility and to the Town. The Amphitheatre Advisory
Committee includes twelve members that meet regularly to provide input and
feedback to staff. In addition there are about 40 regular volunteers that provide
services such as staffing the Guest Services booth, assisting with lawn chair rentals
and providing directions throughout the facility. So far this year these two groups
have given 1,796 volunteer hours in service to the venue. Not only does this
represent a significant financial savings by freeing up staff from routine tasks, but
also demonstrates a sincere dedication to the Amphitheatre from throughout the
community.
Budget Requests:
Capital Equipment: In the 2016 Management Plan there were three capital equipment
requests: 1) lawn chair replacement; 2) replacement of sound monitoring system; and 3)
enhanced Wi-Fi. The budget for these items was $47,500. The lawn chair replacement
project was cancelled for lack of a vendor and the sound monitoring system came in at
almost $2,000 under budget. Thus, the final expenditures in 2016 for capital equipment
was $31,200. For 2017, SMG has requested and staff is recommending $55,000 for capital
equipment as detailed below:
 Replacement of the Amphitheatre’s ATV/Gator: this utility vehicle is needed for the
facility’s parking operations to carry equipment and signage. The current vehicle is 6
years old and is at the point where it needs to be replaced. Cost of replacement:
$15,000
 Replacement of current Movie Screen with a Motorized Movie Screen: Though the
current screen was purchased in 2014, it has had considerable wear and tear. A
motorized screen (similar to the one at The Cary) will eliminate much of that wear
and tear and will also allow for Amphitheatre staff to put up the screen, which will
save Public Works labor costs. Cost of replacement: $7,000.
 Replacement of Digital Sound Processor equipment: This equipment allows for the
delay system for distributing amplified sound consistently throughout the venue. This
current equipment was installed when the Amphitheatre opened and is now outdated
and worn out. Cost of replacement: $12,000.
 Wireless Ticketing Support for Outer Gates: The wireless devices will allow for
electronic ticket scanning at Gates 3 and 4 which will allow patrons to enter the
facility quicker. Cost of system: $21,000.
Total cost for capital equipment: $55,000.
Staff supports these equipment requests.
Operations and Maintenance Budget:
Based on a review of past years operations and maintenance costs, Facilities Management
recommends a Maintenance and Support budget of $230,000. This amount is higher than
was requested in FY16 due to the addition of the Chinese lantern festival. This event has the
facility operating longer and the additional time needed for the set up and break down along
with staffing with TOC support has created a greater financial need. In addition, this year we
have seen an increase in saturation of the facility in the non-sod sections that has required
grading, stone, and pine straw to ensure adequate safe seating for the users.
SPECIAL PROJECTS:
This area includes two projects previously approved but not completed as well as a series of
new projects for which SMG and staff are requesting approval.
Funds Carried Forward for Projects Approved and Initiated in Prior Year:
 Seal Roof Panels Stage and Crescent Canopies: The work is currently contracted and
will be completed in BFY17 at a lower cost of $114,000 than the $120,000
budgeted in BFY16.

Install Window for Bathrooms: Windows / Plexiglas will be installed in VIP bathrooms
ahead of the Chinese lantern festival during BFY17. $2,000
Subtotal for Special Projects Carried Over: $116,000
BFY 2017 Project Requests:
 Purchase additional Stadium Flooring and edging: The additional flooring will be used
for the areas where we are experiencing runoff during heavy rains along with
drainage issues. The additional flooring will help in allowing the areas to be not only
safe but useable when previously they were sectioned off due to soft wet ground
($5,000)
 Install Concrete Pad: This was requested by SMG to move items to the side of the
garage to store palletized materials ($7,500).
 Install Additional (4) Light Poles in Natural areas: Request by SMG to add additional
lighting in natural pine straw areas (two lights to each side of the lawn seating) that
will provide lighting for patrons after shows. The new lights will enhance safety and
match existing pole lights in color and appearance ($47,000).
 Relocate Entrance Number 5: This was requested by SMG to move the gate out
towards the parking lot and away from dumpsters ($5,500).
 Replace Control Board for Fiber Accent Strand Lighting for Stage: Requested by SMG
to repair or replace system to operate as designed. All indications are that the
existing control board is not functioning properly. Given that it is the original and over
16 years old, staff is recommending replacement. ($10,000).
 Install Accent Lighting for VIP Deck area: Requested by SMG to install small accent
strand lighting to this area to provide lighting during events; lighting must have
dimmer capabilities ($7,500).
 Install Overhead Fan per original design: Request funds to purchase and install
overhead fans in the crescent area. The fans were identified as part of the original
construction but were not installed. These fans are designed for this type of outdoor
venue and will provide airflow during the events when we have hot and or humid
conditions. The original design was to install (16) fans ($120,000).
Subtotal for New Special Projects: $202,500
Total Public Works Special Projects: $318,500
Future Capital Projects: There are potential capital construction needs to be considered for
future years. The sound and lighting systems are aging and coupled with changes in
technology will require replacement. There also remains the need for staff offices at the
Amphitheatre. Currently the administrative office for the Amphitheatre is at Herb Young
Community Center. It would provide for a more efficient operation if staff were on site and in
turn potentially open up a revenue generating area for the community center. Staff is not
recommending pursuing these changes now, but is including them as a reminder of
Amphitheatre operational needs for future consideration.
Summary: SMG’s 2017 Management Plan and Budget forecasts an operating subsidy of
$161,574. This represents a conservative approach given the potential for weather impacts,
the nature of next year’s touring market, other entertainment options in the region, and
other variables inherent in operating an outdoor performing arts facility.
Fiscal Impact: SMG continues to provide the majority of staffing and other resources
necessary to program and operate the Koka Booth Amphitheatre. The “SMG Projected
Subsidy” itemized herein reflects the amount that SMG costs are expected to exceed
Amphitheatre revenues as outlined in the line item SMG budget included below:
Maintenance for the facility continues to be provided by the Town of Cary's Public Works
Division and has been factored into their overall staffing levels.
2016 Season
Current FY2016
Budget
Compared to
Estimated
Results
Equals
Expected Cash
Available at
Season End
SMG Projected Subsidy
233,227
(41,723) 274,950
Public Works Support
171,550
203,020
(31,470)
Public Works Projects
158,500
48,060
110,440
47,500
31,200
16,300
610,777
240,557
370,220
Capital Equipment
Total
The 2016 season officially ends on October 31, 2016. Following all related accounting
activity, the budgeted accounts will be returned to General Fund Fund Balance. Currently this
balance is expected to be $370,220 as outlined in the table above. The return of this balance
will help offset the new appropriation being requested for the 2017 season as outlined below.
2017 Season Appropriations
Dollar Amount
SMG Projected Operating Subsidy
161,574
Public Works Support
230,000
Public Works Special Projects
318,500
Capital Equipment
Total Needs for the 2017 Season
55,000
765,074
2017 Season Funding
Less remaining unspent budget authority from the
Public Works and capital equipment purchases
originally planned for the 2016 season (370,220)
Less budgeted funds as part of FY2017 Operating
Budget effective July 1, 2016. (455,000)
Equals the remaining General Fund Fund Balance
Appropriation to the Amphitheatre
(60,146)
While $765,074 in total is being requested to fund the 2017 season, as part of the Town of
Cary's FY 2017 operating budget, $455,000 was included as an estimate of needs for the
2017 season. In addition to the $455,000 budgeted, the Amphitheatre FY 2016 budget is
estimated to come in less than budget by $370,220 as shown in the table above. The
combination of these two items results in $825,220 total budget available for the
Amphitheatre 2017 season, therefore a budget adjustment of $60,146 will be required to
return this back to the General Fund Fund Balance.
Staff Recommendation:
1. Approval of SMG’s Management Plan and Budget for the 2017 season.
2. Approval of reducing the Amphitheatre budget at October 31, 2016 for the first four
months of the Town’s fiscal year 2017 to equal Amphitheatre expenses for the same
time period to the General Fund Balance which is currently expected to be $370,220.
3. Appropriate the $370,220 from the General Fund Balance and return the remaining
balance of $60,146 to the General Fund Fund Balance to the respective Amphitheatre
accounts as necessary to execute the 2017 Amphitheatre season as outlined in the
table above totaling $765,074. Since these numbers reflect estimates to complete the
year, staff seeks council authority to adjust these numbers to correspond with the actual
amounts remaining at the end of October 2016 related to the Amphitheatre operations.
4. Recognize a reimbursement of $548,500 from the General Fund Amphitheatre division
to the General Fund’s Facilities Management division for the 2017 season support
($230,000 support + $318,500 special projects).
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