Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services & Budgets

FROM:

Director, Office of Cultural Affairs in consultation with the Director of Facility Development and Director of Financial Planning & Treasury

SUBJECT:

Vancouver Museum
- Annual Review and 2001 Operating Grant Request
- Supplementary Grant Request
- Phase 3 Revitalization Project Update

 

RECOMMENDATION

A. THAT an operating grant of $640,294 be approved to the Vancouver Museum Commission; source of funds to be the 2001 "Other" Grants budget; and

CONSIDERATION

B. THAT Council approve a supplementary grant of up to $160,000 to the Vancouver Museum Commission; source of funds to be Contingency Reserve; and,

IF B. is approved, THEN

RECOMMENDATION

C. THAT Council approve the revised Revitalization Project - Phase 3 as detailed in this report.

CITY MANAGER'S COMMENTS

COUNCIL POLICY

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

Approval of a grant requires eight affirmative votes.

The 1997-1999 Capital Plan includes funding of up to $3 million for Vancouver Museum Revitalization Plan. Council approved Phase 1 funding of $490,000 on November 7, 1996, Phase 2 funding of $850,000 in February 1997, and approved, in principle, phase 3 funding of $1,660,000 on June 17, 1999.

PURPOSE

This report provides a review of the Vancouver Museum's year 2000 activities and presents for Council's consideration the Museum's 2001 Operating Grant request and further supplementary grant request. As well, it provides an update on the Revitalization Project and seeks Council's approval of a revised renovation scheme.

SUMMARY

The Vancouver Museum has been the keeper and interpreter of the City's history since 1894. Occupying a City-owned building in Vanier Park, the Museum is operated by an independent non-profit society, the Vancouver Museum Commission Society. In additionto safeguarding the City's collection of artifacts, the Museum provides a range of public programs and exhibitions focussed on the past, present and future of Vancouver.

Following an extensive review by an independent consultant, Council approved a series of actions in 1996 to revitalize the Vancouver Museum including the creation of a new governing society, the Vancouver Museum Commission (VMC), as well as supplementary operating and capital funds in recognition of the challenge in rebuilding the Museum.

Since then, the Museum staff and Commissioners have re-engaged with the community, and with funders, mounted highly professional exhibits relevant to the mandate of the institutions and completed the first two phases of a capital improvement project on time and under budget. They have not, however, been able to generate sufficient revenues to replace the City's supplementary grant and are requesting a supplementary grant of $160,000 in 2001. The Museum Commission has indicated that without this supplementary funding they will be unable to maintain operations beyond September (see letter attached as Appendix "E").

Staff have reviewed the Museum's operations and note that while progress has been slower than originally anticipated, the Museum is now actively pursuing a more aggressive and productive path.

Staff support the operating grant request and present the Museum's request for continued supplementary funding of up to $160,000 for Council's consideration. Should Council choose not to support the supplementary grant request at this time, staff propose deferral of further capital investment until a review of the Museum's operational capacity and long-term viability can be completed and reported back to Council.

BACKGROUND

The City of Vancouver owns an extensive and valuable collection of archeology, ethnology, human and natural history artifacts which it has entrusted to the Vancouver Museum Commission. The Museum 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.

In 1996, Council approved a series of actions to revitalize the Vancouver Museum including the creation of a new governing society, the Vancouver Museum Commission (VMC), as well as capital investment in the City-owned building. Phases 1 and 2 of the capital project are complete - improvements to the public areas of the museum, a new orientation gallery and upgrades to "A" wing. Phase 3 will add a new learning centre with state-of-the art exhibits and will begin the process of refreshing "The Vancouver Story".

The City currently provides capital and operating support through grants to the Vancouver Museum Commission as well as janitorial services, grounds and building maintenance through the City's Building Management Department.

DISCUSSION

2000 Year In Review:
The major exhibits opened in 2000 were:

· Portrait V2K: the City of Vancouver Millennium Story and Photographs;
· All About Blue: The Colour that Changed the World
· Toy Soldiers: Playing for Keeps
· This Other Eden; and
· Backyard Biodiversity.

Paid attendance in 2000 was 35,528 including 3,836 school children.

A collection policy was completed and Museum staff, along with their colleagues at the other major exhibiting institutions are working with Office of Cultural Affairs staff to develop a common framework for the City's collection management.

The Master Plan for The Vancouver Story was completed and reviewed with the community participants.

2001 Plans:
In addition to the permanent exhibitions - Your Window on Vancouver and The Exploration and Settlement of Vancouver, the following new temporary and touring exhibits are currently on exhibit or planned for 2001:

· Jade: The Ultimate Treasure of Ancient China;
· Sherlock Holmes and the Clock tower Mystery;
· Women Build Africa; and
· Heritage Fair.

The Museum has now developed 13 different school programs as well as a range of public and adult education programs - from Heritage Walks to the Museum Book Club. Plans for 2001 include a range of community public program partnerships - from the Young Naturalists' Club to the Vancouver Heritage Society to the Canadian Art Deco Society. A list of programs and activities scheduled in June are attached to this report as Appendix "A". In addition, the Vancouver Museum, and the MacMillan Space Centre partnered with theVancouver International Children's Festival to offer admission and programs to festival attendees.

The Vancouver Museum Commission initiated a restructuring of the Museum's management early in 2001. A new President and CEO was recruited from within the existing staff complement. In addition, the Commission has created a series of committees to oversee programming, marketing, fund raising and building projects.

Supplemental Grant Request:
In 1996 when Council approved a series of recommendations for the revitalization of the Museum, it granted supplementary funds of up to $200,000 per year for three years. This was in recognition of the challenge in rebuilding the Museum's revenue generating capacity. The funds were targeted to marketing, education, collection registry and fund raising.

Revitalization has taken longer than planned. While significant progress has been made, the Museum is not yet in the financial position projected in 1996. Many of the cultural objectives set out by the City through the Sears report of 1995 have been addressed. The Museum, through extraordinary efforts by staff and the Commissioners, have re-engaged with the community and funders, mounted highly professional exhibits relevant to the mandate of the institution and completed the first 2 phases of their capital improvement project on time and under budget. They did not however, achieve the revenues projected in the areas of fund raising, attendance, or ancillary revenues.

2000 was the first year since restructuring that the Museum did not receive supplementary funding and it was unable to replace this source with new or increased revenues. Instead, they relied on cash reserves which are now depleted. The VMC's 2000 financial statements are attached to this report as Appendix "B". The VMC had a deficit of ($102,446) on a budget of $1.7 million. The VMC's accumulated surplus at December 31, 2000 was $59,934 in addition to an endowment of $333,000 and funds restricted for capital in the amount of $1.609 million.

The first four months of 2001 do show a demonstrable improvement in attendance - double the same period in 2000 - as well as increases in earned revenues and rental income. However, the transit strike and the major construction in the Museum/Space Centre parking lot arising from the City's dedicated fire protection system installation, may have damped this trend and continued growth cannot be guaranteed.

Museum staff have also been successful in several recent funding proposals to the federal government. These funds however are project related and not available to offset the considerable operating overhead.

Staff have reviewed the operating and supplementary grant requests and support the request. Staff note that the Museum's progress has been slower than originally anticipated but believe that the Museum is now aggressively pursuing a more positive and productive path. It is however, essential that the Museum attract additional support from the private sector. This will require the active engagement by the Commission in annual, sponsorship and capital fund raising campaigns.

Staff are recommending a 2000 operating grant of $640,294 based on the 2000 approved operating grant funding level. The 2001 grant has been increased by 1% over the 2000 grant to cover inflation based on Council policy.

Staff present the Museum's request for continued supplementary funding of up to $160,000 for Council's consideration. Should Council choose not to support the supplementary grant request at this time, staff propose deferral of further capital investment until a review of the Museum's operational capacity and long-term viability can be completed and reported back to Council.

Revised Phase 3 Proposal:
Since restructuring in early January, the Museum has completed a rethink of their capital expansion project. The previous scheme called for the infill of "B" wing to add gallery space at the upper level and an education centre on the lower level. One of the difficulties with the scheme was the need to close more than 50% of the Museum's exhibit, program and rental areas at a time when attendance was finally beginning to grow. Another concern was the Museum's ability to raise the balance of the funds necessary to complete the project.

The revised plan calls for retention of the "B" wing courtyard and adds a two level education centre, The Joyce Walley Learning Centre as an addition to the existing building. The proposed scheme has been reviewed, and is generally supported, by the Heritage Commission as the building is on the landmark heritage registry. Facilities Development staff retained a team of architectural, engineering and cost consultants to review and develop the proposal. The consultants have concluded that while the total cost ($8 million) is not significantly different than previously proposed, the project can be undertaken in phases. A gallery plan for the proposed phased renovation is attached to this report as Appendix "C".

A summary of capital revenues and expenditures for the proposed scheme is attached to this report as Appendix "D". The first phase construction and exhibit infrastructure costs are estimated at $2.967 million. The Museum has secured a $1.65 million bequest which, combined with $970,000 of the $3 million approved by Council in the 1997 - 1999 Capital Plan, and funds raised to date from the Vancouver Foundation, cover all but $372,625 ofthe costs. A further request for $75,000 from the Vancouver Foundation is pending. The balance will need to be secured by the Museum through private sector fund raising.

This phase will complete the learning centre addition, as well as its contents, and refurbish the adjacent galleries. Subject to Council's approval, securing the necessary development approvals, and a very ambitious time frame for design, construction and exhibition development, this phase of the project could be completed by November 2002.

A second phase, is budgeted at $1.1 million and includes the exhibition infrastructure for the chronological galleries "post war" to the present of "The Vancouver Story".

The third phase is budgeted at $3.9 million and concludes the renovation of the galleries and completes the "beginnings" to pre-war exhibits of "The Vancouver Story". The final $690,000 of the City's $3 million capital contribution would be allocated to base building costs of this phase.

The balance of the second and third phase project funds will need to be secured from senior government as well as a private sector campaign. The Museum has already made an application to the Canada/B.C. Infrastructure works program for the maximum allowable grant of $2 million. The Museum has also completed a capital fund raising feasibility study and a campaign plan. A Steering Committee has been formed and campaign leadership is being recruited to support a $2.5 million fund raising initiative.
Staff has reviewed the Museum's request and the consultants' report, and confirm that the balance of the funds are available to complete the first phase of the project. Further, staff believes that this approach meets the needs of the Museum with increased flexibility in the use of public spaces and good opportunity for gallery presentation, outdoor interpretation and public programming. There is also significant rental income potential from the proposed addition. The ability to phase the project enables the Museum to conclude The Joyce Walley Learning Centre expeditiously, meeting the terms of the bequest, maintain sufficient product and program areas to continue their audience development and provide more time to pursue private sector funds to complete phases 3C and 4.

FINANCIAL IMPLICATIONS

The source of funds for the Operating Grant is the "Other" Grants allocation in the 2001 Budget. The source of funds for the supplementary request would be Contingency Reserve.
The 1999 Basic Capital Budget includes a $1.66 million allocation to the work outlined in this report (Phase 3A $120,000, Phase 3B $850,000 and Phase 4 - $690,000).

CONCLUSION

Staff recommend continued support to the Vancouver Museum Commission in the amount of $640,294. Should Council approve further supplementary grant of up to $160,000 to the Museum, staff also recommend the release of the balance of the City's capital contribution to the Museum Revitalization Project as outlined in this report.

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cs010712.htm

APPENDICES A-E NOT AVAILABLE ELECTRONICALLY - COPY AVAILABLE FROM THE CITY CLERK'S OFFICE

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