By a 5-1 vote, the Sedona City Council approved a professional service contract with the operators of the Sedona Posse Grounds Hub, which is good for the next two years.

Councilman John Martinez was the lone dissenting vote while Vice Mayor Mark DiNunzio was absent, still recovering from heart surgery.

There was little discussion from council on Tuesday, May 10, other than Martinez, who explained why he was not in favor of approving the professional service contract. He said while he appreciates the work being done at the Hub, and has even donated money and attended events there, he doesn’t feel the city should be paying for its operation.

“I don’t think the city should provide money blindly because I know we’re not going to get a return on it,” he said. “It’s a worthwhile organization and I donated but I don’t think the city should.”

A year ago council approved a professional services contract with Red Earth Theatre for the operations, management and promotion of the Teen Center facility as a live performing arts venue. The contract was effective from May 1, 2015 through Thursday, June 30, and was a pilot program to see if the need for such a facility existed.

The venue has now been up and running for performing arts rehearsals, workshops, and performances since last May. At the Feb. 23 council meeting, Red Earth Theatre manager Kate Hawkes presented a written and oral activities and financial report for the period of May 2015 — January 2016.

A city document states that as part of that presentation, Hawkes requested that the contract between RET and the city be renewed and extended for the next two fiscal years, July 1, 2016 to June 30, 2018, with the following terms:

• The city would continue to pay RET $2,000 per month for management and the other services as specified in the contract agreement.
• The city would continue to pay utility costs [including electricity, water, sewer, window washing, and basic repairs] currently estimated at $14,000 per year.
• The city would replace the existing sign of Sedona Teen Center on the outside of the facility with a new sign Sedona Hub for an estimated one-time cost of $1,200.
• RET would retain all rental fee revenue towards the payment of day to day operating expenses, reinvestment into the program and facility, and to create a reinvestment/rainy day fund.

Rental income is estimated at $18,370 in year one and $21,890 in year two.

The costs to the city for Red Earth Theater’s services will be $24,000 per year, plus the estimated utilities and other maintenance costs of $14,000 per year. In exchange, Red Earth Theatre will facilitate and promote the Hub as a venue for live performing arts activities available to individuals, performing arts organizations, schools and any reasonable partnerships for rehearsals, classes, and public performance for all types of live performing arts. RET will also agree to provide a facility manager, carry liability insurance, cover regular janitorial costs, provide marketing and maintain a website, provide technical support/staff as needed, track and report on performance metrics as specified in the agreement.