ADMINISTRATIVE REPORT

Date: May 15, 2002
Author/Local: K. Hasselfelt/6045

RTS No. 02617

CC File No. 2201

CS&B: June 13, 2002

TO:	Standing Committee on City Services & Budgets
FROM:	Directors, Office of Cultural Affairs and Finance
SUBJECT:	A.S.T.C. Science World - Annual Review and 2002 Operating Grant Request

RECOMMENDATION

A. THAT Council approve an Operating Grant of $82,625 to the A.S.T.C. Science World Society; source of funds to be the 2002 `Other' Grants budget; and

B. THAT Council endorse A.S.T.C. Science World Society's application to the Canada B.C. Infrastructure Works Program subject to prioritization by the City Manager, noting that such endorsement does not commit the City to funding the local share of capital costs or any increased operating costs, beyond those already approved by Council.

GENERAL MANAGERS' COMMENTS

The General Managers of Community and Corporate Services RECOMMEND approval of recommendations A and B.

COUNCIL POLICY

Council has approved annual grants to A.S.T.C. Science World to support their operations since 1982 through either the "Other Grants" or "Cultural Grants" budgets. In 1997, Council directed that this grant be considered in the context of the "Other Grants" budget category. Approval of grants requires eight affirmative votes of Council.

In 1994, 1997 and again in 2001 Council endorsed applications to the Canada B.C. Infrastructure Works Program. Both civic and community-initiated projects are requiredto be reviewed and prioritized by municipalities prior to submission to the Canada B.C. Infrastructure Works Program.

PURPOSE

This report provides a review of Science World's 2001 activities and presents for Council's consideration their 2002 operating grant request. In addition, the report seeks Council's endorsement of Science World's application to the Canada B.C. Infrastructure Program.

BACKGROUND

The A.S.T.C. Science World Society ("Science World") has received civic support since its inception in 1982. In 1989, the Society moved into the renovated EXPO Centre. The land is owned by the City and leased to the Province. The Province subleases the land and building to the Society for the purposes of operating a science centre.

Science World provides in-house and travelling exhibitions, public and outreach programs, as well as events and films founded in arts, science and technology. Science World also provides curriculum-based education programs, training programs for science teachers and a career-mentoring program for young scientists.

2001 Year In Review

2001 was a year of significant accomplishments for Science World - successful exhibits, new galleries and a host of educational and entertaining programs. Science World's 2001/02 Annual Report will be circulated to Council under separate cover and is available through the City Clerk's office.

Science World's ReGeneration plans to renew the facility and exhibits continued to be a priority and several projects were realized in 2001. This past year has seen the opening of the high definition Weyerhaeuser Science Theatre, the completion and opening of the Kidspace Gallery, and the development and opening of Our World, a $1.1 million permanent exhibition gallery focussing on issues of sustainability.

The highlight of Science World's temporary exhibitions in 2001was China! 7000 Years of Innovation, co-produced with the China Science & Technology Museum of Beijing. The exhibition focused on revolutionary Chinese inventions such as papermaking, printing, silk production, the compass and seismic predictors. China! generated interest beyond the traditional Science World audience and expanded the diversity of Science World's visitor and volunteer base, particularly increasing the number and demographics of adult visitors.

Circulated by the Indianapolis Children's Museum, Kinetosaurs was a travelling exhibition that combined science with art, featuring ten near life-size kinetic dinosaur skeleton `marionettes' created from salvaged scrap metal and discarded industrial parts. Both the China! and Kinetosaurs exhibitions were complemented by films and public programming - the Chinese Kite Festival and Puppetania in particular targeted family audiences.

However, despite the range and quality of program offerings, external events - the transit strike, the impact of September 11^th and the B.C. teachers labour dispute - have had an adverse effect on overall attendance. Science World attendance for 2001 was originally projected at 510,000 visits, but it dropped back to near 1999 levels with a total of 448,125 visitors, a decrease of 9.5% over 2000. Science World is not alone in its experience, as these events have affected all cultural institutions. As the impact of some of these events is anticipated to carry over into 2002, Science World attendance figures for 2002 are projected at 450,000 and admission revenues have been adjusted accordingly. Notwithstanding this drop in attendance, total revenues from attendance and memberships were up by 17% over 2000 largely due to the success of the China! exhibit.

2002 Plans

ReGeneration plans continue in 2002 with design and fabrication work continuing on the next phase of capital improvements. The next major project is the $2.5 million Eureka! Gallery which will transform the Main Gallery exhibit space into an environment focused on basic principles of the physical sciences. This gallery, funded through individual sponsors from B.C.'s high tech community, will open in two phases, with the first phase scheduled to open this June and the second phase in 2003.

Three of the five temporary exhibits planned for 2002 are:
· Scream Machines, The Science of Roller Coasters - an interactive, dynamic exhibit that explores the physics, physiology and psychology of roller coasters;
· Flight: Where Adventure Takes Off! - a celebration of aviation that provides hands-on experiences for understanding a wide range of science, math and physics principles; and
· Arithmetrics - developed in-house, an exhibition which focuses on games using math, on tour in the USA and Toronto before returning to Science World in September.

As well as films, a variety of events, school and public programs will complement the exhibitions. In addition to the Scientists & Innovators in the Schools and the Engaging Science programs, for 2002 Science World will continue to offer The Wonderbus Program which provides subsidized transportation to designated inner city school groups, the Hands-On Science After-School Program and Opening the Door, designed for students pursuing a career in science, technology, engineering or math to meet professionals working in the field.

DISCUSSION

Operating Grant

Due to the highly successful China! exhibition and a one-time grant of $350,000 from the Province (Information, Science & Technology Agency), Science World concluded the year in a surplus position with an excess of revenues over expenditures of $460,000 on a total operating budget of $8.1 million. This was well ahead of the projected $12,000 surplus and despite the drop in attendance numbers. This surplus was used to reduce Science World's accumulated deficit, which now stands at ($118,000) or 1.5% of the operating budget. The audited financial statements for the year ending February 28, 2002 are attached to this report as Appendix "A".

The organization is well managed and has demonstrated their ability to control expenditures and reduce the accumulated deficit. Science World has also been successful in maintaining the momentum of its fund raising for its ReGeneration plans, with now over $2 million raised towards the next phase of the project for the Eureka! Gallery. Science World's challenge continues to be in diversifying its revenue sources. With 76% of its total budget derived from earned revenues, Science World is vulnerable to unforseen external forces such as the transit strike and school disruptions that impact visitor attendance. The balance of revenues are primarily from private sector fundraising and donations.

While Science World does receive some support from senior government for projects, the City's grant is the only operating grant available to Science World. Staff support Science World's efforts to establish long-term funding relationships with senior governments, increase their endowment fund and build up their working capital reserves to provide a more balanced and stable financial base.

OCA and Finance staff have reviewed the 2002 operating budget and assumptions and support the financial projections as reasonable in relation to recent experience at Science World. Staff are recommending a 2002 operating grant of $82,625 based on a 1.75% increase over their 2001 approved grant level to cover inflation based on Council policy.

Infrastructure Application

Another challenge facing Science World is its aging building and infrastructure. The EXPO Centre was originally designed as a temporary building and underwent major renovations 13 years ago. In 2000, Science World began its ReGeneration campaign to addressinfrastructure upgrading requirements in the facility. Science World has approached the upgrading program using a phased approach largely funded with private sector support.

Science World is now proposing to make an application to the federal government under the Canada B.C. Infrastructure Works Program. The application focuses on base building upgrades including structural repairs to the buildings, as well as the replacement and upgrading of aging building systems using environmentally sustainable practices and materials. A summary of Science World's application is attached as Appendix "B".

All community-initiated applications to the Canada B.C. Infrastructure Program must be endorsed and prioritized by the municipal government. Science World is requesting Council to endorse its application. They are not requesting any capital contribution from the City for this project, and are confident that they will raise the required 1/3 local share ($850,000) through private sector contributions. Staff note that Science World has a demonstrated track record in fund raising for their ReGeneration plans and therefore support Science World's application for submission to the Canada B.C. Infrastructure Program, subject to prioritization within the city and community-initiated projects already submitted.

In February 2001, Council approved 24 projects for submission to the Canada B.C. Infrastructure Works Program. To date, none have been funded. Several of these projects have had to proceed and are therefore now ineligible for funding. Staff will co-ordinate with the City Manager's Office to update the City's list of Infrastructure submissions. Subject to Council approval, staff will include Science World's application in the list as one of the community-initiated applications.

FINANCIAL IMPLICATIONS

Source of funds for the operating grant is the "Other" Grants allocation in the 2002 Budget.

CONCLUSION

Staff recommend continued operating support for A.S.T.C. Science World Society in the amount of $82,625 and further, staff support Science World's submission to the Canada B.C. Infrastructure Works Program.

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(c) 1998 City of Vancouver