ADMINISTRATIVE REPORT
Date: May 2, 2003
Author: K. Hasselfelt
Phone: 604-871-6045
RTS No. 03354
CC File No. 4003
Meeting Date: June 12, 2003
TO: |
Standing Committee on City Services & Budgets |
FROM: |
Directors, Office of Cultural Affairs and Finance |
SUBJECT: |
H.R. MacMillan Space Centre Society
|
RECOMMENDATION
THAT Council approve a further $8,007 for a total 2003 operating grant of $465,543 to the H.R. MacMillan Space Centre Society, noting that on April 24, 2003 Council has already approved disbursement of $457,536 based upon their 2002 grant level; source of funds to be the 2003 `Other' Grants budget.
GENERAL MANAGERS' COMMENTS
The General Managers of Community and Corporate Services RECOMMEND approval of the above recommendation.
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. Approval of grants requires eight affirmative votes of Council.
The operating/lease agreement between the City and the B.C. Space Sciences Centre (now H.R. MacMillan Space Centre Society) dated January 1, 1988 has expired. Council authorized the execution of a new lease/operating agreement under approved terms and conditions on June 13, 2002.
PURPOSE
This report provides a review of the H.R. MacMillan Space Centre Society's 2002 activities and presents their 2003 operating grant request for Council's consideration.
BACKGROUND
In 1967, as part of the Centennial celebrations, the H.R. MacMillan Planetarium and the Vancouver Museum (formerly at the Carnegie Centre) were located in a prominent new building in Vanier Park. The Museum and Planetarium, as well as the Vancouver Maritime Museum, were operated as a department of the City until 1972, when these three institutions became one independent non-profit society, the Vancouver Museums and Planetarium Association (VMPA). The VMPA received operating support from the City in two forms: an operating grant for programs, staffing and collection activities, and the direct provision of the facility at nominal rent, maintenance, janitorial services and building costs. In 1987, the VMPA dissolved and three new non-profit societies were created including the B.C. Space Centre Society. In 2000, the Society changed its name to the H.R. MacMillan Space Centre Society (MSC).
The MSC continues to occupy the City-owned building in Vanier Park that it shares with the Vancouver Museum. The lease has expired and a new lease is currently under negotiation. In addition to an annual operating grant, the City currently provides occupancy of the facility at a nominal rent, property tax exemption, utilities, janitorial services, and grounds and building maintenance through the City's Facilities Design & Management department. The organization's breakdown of revenues and City support is illustrated in Table 1.
The Space Centre is governed by a volunteer Board of Directors and has 21 full time staff and 31 part-time staff. Forty-five volunteers contribute approximately 2,000 hours to the Space Centre's programming and activities. The MSC offers interactive exhibits, public programs, demonstrations and events in five different areas of the facility: the H.R. MacMillan Planetarium; Gordon MacMillan Southam Observatory; GroundStation Canada - a multimedia "mission control" theatre; the Cosmic Courtyard - featuring interactive exhibits on a range of space-related topics; and Virtual Voyages - a motion simulator ride.
2002 Year in Review
In 2002, the MSC unveiled the new telescope that was installed in the observatory, and with the assistance of a $75,000 Climate Change Action Fund grant, introduced two new programs on climate change: Spaceship Earth and Earth Watch. In addition to the permanent exhibits, MSC hosted NASA's International Space Station travelling exhibit, which included materials on Canadian contributions to space science and exploration. The MSC produced a new GroundStation Canada demonstration called A Day in Space and Canadian astronaut Dr. Dafydd Williams shared his experiences with hundreds of elementary students.
A wide range of education and outreach programs continued to be offered, many of which enhance school curriculum and are supported by sponsorships and bursaries, some of which include:
· Canadian National Marsville - uses electronic and distance learning technologies with traditional classroom learning
· Starlab - an inflatable and portable planetarium and Community Astronomy - which takes telescopes and a slide presentation out to communities;
· The Great! Mars Rover Race - a competition for high school students which has expanded into Mars Day;
· Sharing Space - a mentoring program for secondary school students; and
· Engaging Science program - a joint venture with Science World that presents professional development workshops to BC teachers.
In addition to education and outreach programs, the MSC has begun a series of events, which feature live performers and make use of the laser system and planetarium environment. Two such events in 2002 were the Global Concert, in partnership with the Western Front, and The Listening Room, a festival of live electronic music and visual artists.
2003 Plans
Following upon initiatives in 2002, the MSC is developing a variety of new outreach programs, such as Project NorthStar Online that utilize electronic delivery mechanisms. Education staff also began work on Canada in Space, a Virtual Museum of Canada project,that will develop an interactive web-site for young people on Canada's role in space exploration. As mentioned in the March 27, 2003 report to Council, infrastructure improvements through a capital grant of $456,850 from the Western Economic Diversification (WED) fund will purchase equipment for these distance learning and outreach programs, as well as upgrade and expand present display systems that enhance the visitor experience.
Electronic delivery systems will provide access to space science education to children in the rural, northern and aboriginal communities and may leverage funding from federal programs which support access and quality programming to Canadians via the Internet. This type of programming is also a key element in the MSC's updated Strategic Plan (January 2003), which is focussed upon positioning the MSC as a national resource for quality space and astronomy information. Staff note that while the MSC's expanding mandate and audience development initiatives are commendable and indicates the organization's willingness to move beyond its reliance on City support, these regional and national initiatives are outside the City of Vancouver's funding scope.
Key operational challenges in 2003 include changes in the organization's management, as the Managing Director will be retiring after thirteen years. A transition process has been identified and an executive search is currently underway. Other challenges include building an endowment, developing new revenue streams and addressing the changing demographics of an aging population and needs of visitors.
DISCUSSION
The MSC continues to focus on growing its operations through increased programming, new corporate sponsorship initiatives and by maximizing ancillary revenues (e.g. software licensing). However, staff continue to be concerned with MSC's declining trend in paid attendance. While outreach attendance may be expanding, Vancouver-based attendance is declining. Shortfalls in public and school attendance were experienced in the first half of 2002 due to the teachers' labour dispute and September 11th. Despite recovery in the second half of the year, annual paid attendance was down 6% to 111,072 over 2001, admission revenues were down 8.6% over last year and down 27% since opening the renovated Space Centre in 1997/8. In the MSC's updated Strategic Plan, increasing paid attendance and revenues is a key focus and four strategies have been outlined to accomplish this goal.
The MSC has already had some success in offsetting the decline in admissions revenues through very successful private sector fund raising and corporate partnership initiatives. The MSC ended 2002 with an excess of revenues over expenditures of $22,732 before amortization at their fiscal year ending December 31,2002, on a total operating budget of $3.46 million. After amortization, MSC had a annual operating deficit of ($50,651).
However, the MSC concluded the year with an accumulated surplus of $153,324 due to successfully renegotiating the balance owing on a loan. In 1997, as part of the organization's capital renovations, the MSC purchased a motion simulator and financed this purchase through its manufacturer. In 2002, the MSC was required to make a lump sum payment of $250,000 on the loan and this payment was made through utilization of its cash reserves. The balance of the loan was renegotiated, which resulted in a forgiveness of debt and a new balance owing to March 2005 of $75,000. The audited financial statements for 2002 are attached to this report as Appendix "A". The MSC's 2002 Annual Report will be circulated to Council under separate cover and is available through the City Clerk's office.
FINANCIAL IMPLICATIONS
OCA and Finance staff have reviewed the 2003 operating budget and assumptions and note that the MSC is projecting a small surplus at the end of the year, including amortization. Staff are recommending to Council a 2003 total operating grant of $465,543. Council has already approved disbursements totalling $457,536 on April 24, 2003 to assist the organization with bridge financing a capital project. Staff are requesting that Council approve the balance of $8,007, which is based on an increase of 1.75% over the 2002 approved grant level to cover inflation according to Council policy. Source of funds for the operating grant is the "Other" Grants category in the 2003 Budget.
2003 Operating Grant Recommendation
|
$ 465,543 |
2003 Advance Grant Installments Paid to Date |
$ 457,536 |
Balance of 2003 Grant Requested |
$ 8,007 |
CONCLUSION
Staff recommend continued operating support in 2003 for the H.R. MacMillan Space Centre Society totalling $465,543.
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