ADMINISTRATIVE REPORT

Date: May 17, 2000
Author/Local: S. Harvey/6001
RTS No. 01501
CC File No. 4003

P&E: July 6, 2000

TO:	Standing Committee on Planning and Environment
FROM:	Directors, Office of Cultural Affairs and Finance
SUBJECT:	H.R. MacMillan Space Centre Society - Annual Review and 2000 Operating Grant Request

RECOMMENDATION

THAT an operating grant of $445,215 be approved to the H.R. MacMillan Space Centre Society, with the 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 current operating/lease agreement between the City and the Pacific Space Centre Society has lapsed and is in the process of being renegotiated. In the intervening period, the relationship is being continued on generally the same terms and conditions as contained in the last operating agreement.

Approval of grants requires eight affirmative votes of Council.

PURPOSE

This report provides a review of the H.R. MacMillan (formerly Pacific) Space Centre Society's 1999 activities and presents for Council's consideration their 2000 Operating Grant request.

BACKGROUND

In 1967 as part of the City’s Centennial celebration, the Vancouver Museums and Planetarium Association was relocated to a prominent new building in Vanier Park. Over the years facilities have expanded to include the H.R. MacMillan Planetarium and the Southam Observatory. In 1987 Council approved the dissolution of the VMPA and the creation of three new societies including the Pacific Space Centre Society. Earlier this year, the Pacific Space Centre Society changed its name to the H.R. MacMillan Space Centre Society (MSC) in recognition of the significant support of the MacMillan and Southam families over the years.

The Space Centre shares the City-owned building with the Vancouver Museum, and presents educational programs and exhibits in the areas of astronomy, space science, space technology, remote sensing and earth management.

1999 Year in Review

The MSC continues to offer a series of exhibits, programs and activities with a focus on educational and entertaining family programming. The permanent exhibits and galleries include:
· H.R. MacMillan Planetarium;
· Gordon Southam Observatory;
· Groundstation Canada - a multimedia “mission control” theatre;
· Cosmic Courtyard - interactive displays on a range of space-related topics; and
· Virtual Voyages - a motion simulator ride.

The H.R. MacMillan Planetarium features a series of multimedia shows and programs from children’s shows such as In My Backyard and Dr. Fantastic’s Millennium Show to music laser shows.

The permanent exhibits, created in 1997 as part of the $9 million Pacific Space Centre expansion were intended to attract a large new audience. While earned revenues for public programs has doubled since the centre’s opening, the centre’s exhibits alone are not sufficient draw to maintain or grow audiences to the levels projected or required to supportthe exhibit infrastructure. Actual paid attendance (147,277) is down 20% over 1998. Thirty four percent of the MSC’s total audience consists of students and the preponderance of the balance consists of local families. To foster and increase repeat visitation, they need to develop faster change over and a greater variety in family and educational programming. To that end, the MSC has focussed in 1999 on more “event” programming such as Spring Break, Summer Camp, The Universe Tonight, and other special presentations.

Operational focus in 1999 has been on marketing and communications, increasing memberships and controlling costs.

2000 Plans

The MSC is focussing on growing its operations through increased event programming, through new corporate sponsorship programs and by maximizing ancillary revenues (facility rentals, software licensing etc.) and expanding their outreach programs such as Starlab, a portable planetarium. In concert with the Vancouver Museum, they are exploring additional revenue opportunities through pay parking and on-site food services.

The MSC continues to collaborate with local science centres - Science World and the Vancouver Aquarium - for a teacher training program, Engaging Science as well as other national and international science centres in developing new programs and exhibits.

DISCUSSION

Staff are recommending to Council a 2000 operating grant of $445,215, 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 MacMillan Space Centre, as well as other local exhibiting institutions. The MSC's Annual Report will be circulated to Council. The 1999 financial statements are attached to this report as Appendix "A".

The MSC had an excess of expenditures over revenues of ($68,209) at their fiscal year ending December 1999, on a total operating budget of $3.118 million. The deficit arises from ongoing costs associated with the 1997 Space Centre expansion. While the bridge financing from the City of Vancouver in the amount of $200,000 was repaid in full in 1999, the MSC continues to carry a $735,000 loan and are committed to significant monthly loan payments through 2004. They must increase revenues or they will quickly deplete their working capital.

Staff concur with the MSC’s strategies to focus on enhancing event programming to drive repeat visitations, on more aggressive sponsorship and fundraising programs and, in concert with the Vancouver Museum on maximizing ancillary revenue opportunities such as pay parking and food services. In particular, staff support the MSC’s plans to build up working capital reserves and increasing their endowment fund.

FINANCIAL IMPLICATIONS

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

CONCLUSION

Staff recommend continued operating support for the MacMillan Space Centre Society in the amount of $445,215.

NOTE FROM CLERK: Electronic copy of Appendix A is not available - on file in the Office of the City Clerk.

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(c) 1998 City of Vancouver