ADMINISTRATIVE REPORT

Date: June 2, 2000
Author/Local: S. Harvey/6001
RTS No. 01505
CC File No. 2201/4002

CS&B: June 22, 2000

TO:	Standing Committee on City Services & Budgets
FROM:	Directors, Office of Cultural Affairs and Finance
SUBJECT:	Vancouver Maritime Museum - Annual Review and 2000 Operating Grant Request

RECOMMENDATION

THAT an operating grant of $266,727 be approved to the Vancouver Maritime Museum; source of funds to be the 2000 "Other" Grants budget.

GENERAL MANAGERS' COMMENTS

The General Managers of Community and Corporate Services RECOMMEND approval.

COUNCIL POLICY

Council has approved annual operating grants to the major exhibiting institutions to support their ongoing operations since their formation as independent non-profit societies in 1971.

The City's relationship with the Vancouver Maritime Museum (excluding the St. Roch) is outlined in an operating/lease agreement in effect until May 31, 2000. The agreement between the City and the VMM with respect to the St. Roch expired on June 30, 1997.

Approval of a grant requires eight affirmative votes.

PURPOSE

This report provides a review of the Vancouver Maritime Museum's 1999 activities and presents for Council's consideration their 2000 Operating Grant request.

BACKGROUND

The Vancouver Maritime Museum (VMM) has operated in its current location in Kits Point since 1958. The VMM was operated by the City until 1972 when it became part of the Vancouver Museums and Planetarium Association. In 1987 Council agreed to the dissolution of the VMPA into three distinct organizations: the Vancouver Maritime Museum Society, the Vancouver Museum Association and the BC Space Sciences Society. The City currently provides capital and operating support through grants to the Vancouver Maritime Museum as well as janitorial services, grounds and building maintenance and through the City’s Building Management Department.

The St. Roch National Historical Site is owned by the City of Vancouver and housed in a City-owned structure adjacent to the Vancouver Maritime Museum. Up until 1995, the St. Roch was operated by the Government of Canada through Parks Canada. Since 1995, the VMM has been operating the St. Roch with annual supplementary grants from the City. Council has directed the VMM to develop a fund raising strategy to provide for the future operating costs associated with the St. Roch. In March, Council approved a 2000 Supplementary Grant in the amount of $82,000.

In 1999 Council commissioned "Vancouver Maritime Museum Future Operations Review". The conclusions of the study have not yet been formalized as the City’s waterfront context continues to evolve. Once viable site options, including the option of remaining in the current location, are known, staff will report to Council. In the meantime, the Vancouver Maritime Museum continues to undertake the operational planning and capacity building necessary for any future option.

1999 Year In Review

The VMM's exhibits, program and activities in 1999 attracted a total audience of 95,411. In addition to the permanent exhibits of maritime art and artifacts, model ships and the Children's Discovery Centre, the VMM hosted a series of temporary exhibits including:
· Shipwreck!;
· Portugal the Opening of the World;
· James Cook: Master Mariner in conjunction with a visit of the Endeavour; and
· The Art of Mapmaking.

The highlight of the season was the visit of Capital Cook’s Endeavour which attracted significant public interest with more than 10,000 visits over the four day event.

Operational focus in 1999 was on the St. Roch fund raising initiative and the site options planning process.

2000 Plans

The VMM has renewed its five year strategic plan building on the five goals of their Constitution, and setting as objectives for 2000:

· the completion of the St. Roch voyage and creation of a St. Roch Endowment Fund;
· refresh four galleries of permanent exhibits;
· mount Beyond the Canvas, an exhibit featuring local maritime art as the major temporary exhibit; and
· restore the submersible, the Ben Franklin, and develop an Aquanaut/Astronaut education program in concert with the H.R. MacMillan Space Centre; and
· complete fundraising feasibility plan and operational plan to inform future site opportunities.

DISCUSSION

Staff are recommending a 2000 operating grant of $266,727, based on the 1999 approved funding level. The 2000 grant has been increased by 1% over the 1999 grant to cover inflation based on Council policy. It has also been reduced by .5% consistent with the City's budget reduction program.

OCA staff have reviewed the budgets and assumptions and support the financial projections as reasonable in relation to recent experience at the Vancouver Maritime Museum, as well as other local exhibiting institutions. The VMM’s 1999 financial statements are attached to this report as Appendix "A".

The VMM had a surplus of $19,911, on a budget of $880,541, which reduces their accumulated deficit to ($219,011). The VMM have managed to realize this modest surplus through significant increases in their donations and sponsorship revenues (excluding St. Roch funds). Admission income in 1999 was down 30% in actual dollar amounts, but modified to 11% once lost revenues arising from the fire closure are accounted for.

The VMM will need to increase their admissions in 2000. The VMM is planning to augment its exhibit infrastructure by developing more outdoor exhibits such as the BenFranklin, and a proposed expansion of the Heritage Harbour. It will be essential that the VMM develop a plan to capture revenues from these outdoor investments.

An additional risk going forward is the uncertainty around the fund raising for the St. Roch voyage. It now appears that the project has attracted sufficient funding to cover the voyage; however, it is not yet clear that there will sufficient additional funds raised to establish the endowment and offset the costs of the ongoing St. Roch operations (@$82,000 per year). The VMM will continue to raise funds throughout the voyage. While unlikely at this stage, there is still a possibility that the St. Roch voyage may not go ahead, in which case the VMM will have to absorb a significant loss arising from prepaid planning expenditures.

FINANCIAL IMPLICATIONS

The source of funds is the “Other” Grants allocation in the 2000 Budget.

CONCLUSION

Staff recommend continued operating support for the Vancouver Maritime Museum Society in the amount of $266,727.

APPENDIX A ON FILE IN THE CITY CLERK'S OFFICE

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(c) 1998 City of Vancouver