POLICY REPORT
CULTURE

TO: Standing Committee on Transportation and Traffic

FROM: Director of Office of Cultural Affairs

SUBJECT: Policy Direction on the Regional Cultural Planning Process and Specific Cultural Development Initiatives

RECOMMENDATION

A. THAT Council endorse continued participation with other Greater Vancouver municipalities in efforts to advance regional cultural development interests,

B THAT Council endorse in principle, as guidelines for staff participation in inter-municipal cultural planning processes, the draft plan and recommendations for implementation of the Greater Vancouver cultural development partnership, as outlined in this report,

C. THAT Council confirm that securing sustainability of established region-serving cultural institutions is a City priority, and instruct staff to investigate and report back on diversified funding sources,

D. THAT Council direct Cultural Affairs staff to pursue opportunities and initiatives that support the City's priorities such as the Cultural Information Network, Cultural Tourism Strategy, Cultural Industries and New Media Strategy, and Strategic Partnerships with Senior Governments, concurrent with regional planning efforts.

CITY MANAGER'S COMMENTS

COUNCIL POLICY

In 1993, City Council approved as a priority, a Vancouver Arts Initiative recommendation to encourage Greater Vancouver municipalities to work together on regional arts issues.

In March 2000, Council endorsed Strategies for Regional Arts and Cultural Development in Greater Vancouver and authorized development of an implementation plan consistent with approved principles.

PURPOSE

This is to seek Council direction on a number of cultural development initiatives, and, to present for approval-in-principle an implementation plan for a Greater Vancouver cultural development partnership, to provide guidelines for continued staff participation in regional cultural planning efforts.

BACKGROUND

Recognizing the importance of the arts and culture to the region's social and economic development, a group of Greater Vancouver municipalities, including City of Vancouver, undertook an inter-municipal initiative to prepare a cultural development strategic plan.

The Steering Committee began with a research and consultation phase, which produced Arts and Culture In Greater Vancouver - Contributing to the Livable Region - 1997, a profile of the sector identifying both challenges and opportunities. Phase 2. produced Strategies for Regional Arts and Cultural Development in Greater Vancouver - 1999 which, with community stakeholders, identified strategic directions and priority actions that would best address regional interests. These reports are on file with the City Clerk.

In July, 2000, the Regional Cultural Plan Steering Committee completed Phase 3, an implementation framework for the Strategies, including business plan and options for governance and funding. A Summary of the recommended Implementation Plan and earlier staff report are attached as Appendix A.

Senior Government Interest:
Staff tested the interest of senior government ministries and agencies with cultural service or development mandates. Many have identified interests and objectives in common. On file are supportive letters expressing a willingness to work toward partnership.

Community Support:
Throughout the strategic and implementation planning the Steering Committee undertook extensive stakeholder and community consultations. Being equally concerned to consult the general public, a survey was undertaken in August, 2000. Overall, the survey results show strong support for the co-operative approach and the benefits of the plan, as well as a willingness-to-pay for those benefits. (Appendix A)

In the Fall of 2000, Regional Cultural Plan Steering Committee members prepared staff reports on the Implementation Plan for their Councils' consideration. Unfortunately, the City of Vancouver's original report was postponed due to the strike. Given the delay, Citystaff have taken the opportunity to prepare this updated report taking into account the variety of responses other Greater Vancouver municipalities have recorded.

DISCUSSION

Reports were considered by 13 other Greater Vancouver Councils. Despite it being a time of high controversy around a number of regional issues, municipalities generally agree on the value of continued co-operation and development of arts and cultural projects to meet shared needs. However, it remains a challenge to find agreement on the ways and means to do so. While there is very substantial public support for the collective initiatives discovered through public survey, and municipalities' generally endorsed earlier reports, the latest results from Councils were mixed.

Though a number of communities approved the plan and structure, in principle, several issues arose in the confusion between the proposed inter-municipal partnership and the GVRD itself. A number of Councils raised objections to the overall cost at this time, and some proposed to substitute a concerted approach to senior governments to fund the initiatives. All but one propose to return to the Steering Committee to continue the work.

While there is not, at this time, the support needed to move ahead on the comprehensive business plan developed by the Steering Committee, interest has been expressed by 12 Greater Vancouver municipalities to continue the inter-municipal planning process and to consider participation in some specific initiatives. The Steering Committee's work to date has demonstrated the potential region-wide benefits of working collectively on regional cultural development, and thus staff recommend that the City continue to participate in the inter-municipal process. However, the City cannot rely on this course of action alone.

A number of the priority objectives identified in the Strategies document and the Implementation Plan require more immediate attention than the regional planning process may provide. For example, staff are already engaged in very promising exploratory discussions with the civic, tourism and cultural representatives of Seattle, Tacoma, and Portland about the potential mutual benefits of a cultural tourism corridor. Additionally, cities across Canada have asked to participate in a national Cultural Information Network, and both a national foundation and the federal government have expressed strong willingness to invest.

Vancouver's cultural sector needs help to develop alternate revenue streams, to develop cultural tourism strategies, to enhance production values and marketing, and to achieve sustainability. Strategic investment partnerships with senior governments on initiatives like the Cultural Information Network and Cultural Tourism are available and could be pursued independently. Consequently, the Director of Cultural Affairs recommends that City staff pursue these strategic initiatives on such basis as the need and opportunity present.

CONCLUSION

The Director of the Office of Cultural Affairs RECOMMENDS that Council approve continued participation of the City of Vancouver in efforts to create an inter-municipal cultural development partnership guided by this report and the draft implementation plan.

Some issues and opportunities in the creative sector require more immediate attention than the regional planning process may provide, however. Thus, the Director Cultural Affairs RECOMMENDS that City Council authorize staff to pursue such strategic initiatives as the need and opportunity provide, concurrent with the regional planning process.

* * * * *

Need for Initiative:
In Vancouver it is well understood that the arts and culture are a vitally important part of our communities, providing both social and economic benefits. In Greater Vancouver, there are more than 65,000 people employed in the sector, generating over $3 billion in direct revenues. Eighty percent of residents participate in arts and cultural events.

While there are big benefits, there are also big challenges to maintaining and improving these contributions. The region has grown rapidly over the past 15 years, adding nearly 700,000 new people - many from diverse origins. Though some individual Greater Vancouver municipalities are active in cultural development, there was no co-ordination or strategic collective action on shared objectives. And, the federal and provincial governments are under-investing in arts and culture in Greater Vancouver. On a per capita basis, the federal government investment in BC over the last ten years is less than half of what it invests in other provinces on average; most recently, this has dropped to about one-third. And provincial support is about one-half the average of other provinces.

Recognizing the importance of the arts and culture to the region's social and economic development, a group of Greater Vancouver municipalities approached the GVRD to support an inter-municipal initiative to prepare a cultural development strategic plan. The GVRD's Regional Administrative Advisory Committee (RAAC) struck a Steering Committee comprising cultural planning staff from member municipalities.

The Steering Committee first undertook a research and consultation phase, which produced Arts and Culture In Greater Vancouver - Contributing to the Livable Region - 1997, a profile of the sector identifying both challenges and opportunities. Phase 2. produced Strategies for Regional Arts and Cultural Development in Greater Vancouver - 1999 which, with community stakeholders, identified strategic directions and priority actions that would best address regional interests. These reports are on file with the City Clerk.

In July, 2000, the Steering Committee completed Phase 3, an implementation framework for the Strategies, including business plan and options for governance and funding.

Business Plan:
The business plan maps the way for Greater Vancouver municipalities to achieve a number of shared strategic objectives:

· To leverage direct and indirect senior government investments (and private partners),

· To develop a "Greater Vancouver Cultural Information Network" and thereby facilitate wide public access to information on cultural activity, provide access to an on-line marketplace, enable sectoral communication, and facilitate co-ordinated regional cultural planning,

· To strengthen existing, and develop new, region-serving cultural organizations throughout Greater Vancouver,

· To implement a cultural tourism strategy, including development and marketing of cultural attractions in member municipalities region-wide,

· To establish regional touring and joint exhibition programs, thereby ensuring wide-spread development opportunities and cost-effective distribution of cultural resources,

· To create an inter-governmental strategic investment agreement to grow the potential of cultural industries and new media in the region.

A collective investment of $6.5 million would leverage $70 million in spending annually from all sources - senior governments, private and non-profit cultural sectors - in addition to the proposed strategic agreement in the cultural industries and new media.

Organization and Governance:
To deliver the business plan, three options were considered: an arm's length not-for-profit society, an inter-municipal service delivery organization, and the GVRD.

The Steering Committee unanimously recommended the inter-municipal service delivery organization as the one most closely matching the selection criteria established by local Councils in March, 2000. It meets accountability needs while offering operational flexibility and an entrepreneurial stance. Importantly, as an inter-municipal service delivery organization, it remains close enough to government to effect partnerships with senior levels of government. Under new legislation, the GVRD has authority to create such a municipally accountable body.

Funding:
Six funding options were assessed against the principle of "beneficiaries pay", as well as criteria of feasibility, adequacy, appropriateness and equity. A multi-pronged approach is recommended, drawing on per capita contributions, visitor surcharges, e-commerce revenues and private sector partnerships. Given the time required to bring the visitor surcharge, e-commerce and private sector partnerships online, it is recommended that the $6.5 million

requirement be initially funded by a per capita contribution of $3.26. At the request of participating municipalities, the per capita contribution can be collected most efficiently via the GVRD.

Phasing:
Start-up of such an initiative requires phasing of the plan's implementation - terms of either 2 or 3 years beginning 2001 were considered. City staff believe that a balance of interests can be achieved in 2 years. This provides one year in 2001 for set-up of the initiative and preparation for the per capita contribution to begin in 2002, while limiting delay of implementation. First year costs up to $350,000 could be requested as a contribution or a repayable advance from GVRD reserves.

Board of Directors:
Appointments. An important further consideration is how the Board of the new organization would work (e.g. how would Board members be appointed, who is eligible to be a Board member, how voting would be handled, how long would Board members serve, and remuneration). The Steering Committee recommends that each participating municipality appoint a Board member, in that process deciding whether that person should be an elected representative, a staff person or a community member.

Voting. While the preferred mode of decision-making is by consensus, a voting procedure is needed. The Steering Committee recommends that participating municipalities designate a Council member to participate in a process to develop Board voting procedures.

Senior Government Interest:
Staff tested the interest of senior government ministries and agencies with cultural service or development mandates. On file are supportive letters from both the federal and provincial Ministers. Officials in the Department of Canadian Heritage, Western Diversification, Human Resources Development Canada, CBC, Canada Council, New Media Innovation Centre, as well as the BC Ministry responsible for Culture, BC Arts Council, Tech BC, BC Film, and BC Film Commission, - among others - have expressed a willingness to work toward partnerships and have begun to identify elements of the business plan where we share objectives. They await the formation of an inter-municipal entity with which to work.

Community Support:
Throughout the strategic and implementation planning the Steering Committee undertook extensive stakeholder and community consultations. Being equally concerned to consult the general public, an extensive survey was undertaken in August, 2000. Overall, the survey results show strong support for the co-operative approach, and the benefits of the plan, as well as a willingness-to-pay for those benefits. An average household in Greater Vancouver is fewer than 3 people. At $3.26 per capita the household would pay less than $10.00.

· Support for the overall concept 89% 88%

· Support for additional investment

· Support for additional investment:

· Support for each of the specific initiatives 79-90% 80-92%

The proposed implementation plan produced by the Regional Cultural Plan Steering Committee is the result of thorough research and a consultation process that has involved business and community groups from across the region. It responds to priority needs and opportunities, and optimizes the opportunity to achieve inter-governmental partnerships around the cultural information network and cultural tourism initiatives. The proposed inter-municipal structure has proven itself in other jurisdictions, and the phase-in period would have allowed a reasonable period of time to prepare for participation. It is a feasible and reasonable basis on which to proceed.

On the merits, the Director, Office of Cultural Affairs would have recommended endorsement of the business plan and full participation in its implementation as follows:

THAT Council:

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