|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
October 16, 2003 | |
Author: |
Karen Hasselfelt | |
Phone No.: |
604-871-6045 | |
RTS No.: |
03666 | |
CC File No.: |
2050 | |
Meeting Date: |
December 4, 2003 |
TO: |
Standing Committee on City Services and Budgets |
FROM: |
Director, Office of Cultural Affairs |
SUBJECT: |
Major Exhibiting Institutions - One-Time Supplemental Requests: Guidelines and Criteria |
RECOMMENDATION
THAT Council approve the recommended guidelines and criteria for One-Time Supplemental Requests from the Major Exhibiting Institutions as outlined in Appendix A.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval.
COUNCIL POLICY
Council has approved annual operating grants to the Major Exhibiting Institutions to support their ongoing operations since their formation. Approval of grants requires eight affirmative votes of Council.
PURPOSE
This report recommends eligibility criteria and guidelines for any future supplemental requests from the Major Exhibiting Institutions.
BACKGROUND
The City currently provides operating grant support to five Major Exhibiting Institutions. Two A.S.T.C. Science World and the H.R. MacMillan Space Centre have science education mandates. Three the Vancouver Art Gallery, Vancouver Museum and the Vancouver Maritime Museum exhibit and hold in trust the City's collections of art and artifacts.
The reporting and funding relationship between these institutions and the City is generally based on historic precedents. In 1995, the relationships and grant processes for all the Major Exhibiting Institutions were transferred from Finance to the Office of Cultural Affairs, and have been managed by OCA staff. At that time, Council also directed that the operating grants to the Institutions no longer be tied to specific expenditure areas but to general operations.
In addition to operating grants, many of the major exhibiting institutions also receive civic support through the nominal lease of City-owned land and facilities, maintenance, utilities, janitorial and security services. Over the years, the City has also periodically considered and approved supplemental grants to the Vancouver Art Gallery, the Vancouver Museum, the Pacific Space Centre (now the H.R. MacMillan Space Centre) and the Vancouver Maritime Museum. These requests have ranged from $67,000 to $250,000 and have been for a variety of purposes including forgone revenue arising from business interruption caused by fire or asbestos removal.
Over the past few years, there have been numerous ad-hoc supplemental requests coming to staff and Council. In response to this increasing demand on Contingency Reserve and in the absence of a policy framework in which to evaluate these requests, staff determined that it was necessary to articulate parameters and standards for future supplemental requests. Guidelines and criteria for future supplemental requests were presented to Council and at the request of one of the institutions, Council deferred consideration of these guidelines and criteria until such time as staff received input from the institutions affected by them.
DISCUSSION
Staff have reviewed comparable and relevant grant policies and guidelines to ensure that the proposed guidelines align with existing grant programs and standards. Staff have also met with representatives from the five Major Exhibiting Institutions to review and discuss the proposed guidelines and criteria in relation to the potential needs of the institutions.
The institutions have various types of requests that they wish to have considered. These include capital requests, special projects and emergency funds. As there are already other civic mechanisms to address capital requests from the institutions, such as consideration in the civic capital budgeting process, capital funding is not considered as eligible under supplemental requests.
Certain special projects may be considered to be eligible, provided that they are one-time requests outside of regular operations. The purpose of supplemental requests is to provide the Major Exhibiting Institutions with a mechanism for responding to extraordinary initiatives or needs that are over and above regular operating functions. As there is no specific grant program or separate budget to address supplemental requests, requests are not expected to be routine or recurring. Supplemental grants are not intended to fund existing services, multi-phase or multi-year initiatives that require on-going funding from the City, or be a means by which the institutions increase existing operating grant levels.
There was some discussion with the institutions about what was considered to be regular or existing operational activities. Staff have requested that supplemental requests be developed out of the organization's planning process, so that any requests (e.g. large scale special projects) clearly further the goals outlined in the institution's strategic plan and can be evaluated within the context of the institution's overall operations. As the institutions currently submit their proposed annual program of exhibitions, public programs, collections activity, etc. to the City at the time of the annual grant review, a supplemental request could be reviewed within the context of this submission and a determination made as to whether it is an activity that is outside the scope of the organization's existing programs or responsibilities.
Therefore, staff have recommended that any supplemental requests be submitted at the time of the institution's annual grant review. Also, if supplemental requests from the institutions are submitted at the same time, staff can review any requests simultaneously. This would allow staff to weigh the relative merits of each proposed request within the context of the other institutions, as well as within their own operations, and give Council advance notice of the number of requests likely to be submitted from these institutions within a given year.
Concern was expressed by some of the institutions that there needed to be flexibility within the framework to allow for the unexpected emergency, which could happen at any time throughout the year. This need for some flexibility has been incorporated into the supplemental review process. On rare occasions where unforeseeable circumstances occur that are beyond the institution's control, then the process allows for requests to be submitted at other times of the year.
The institutions supported the role of supplemental grants in serving as leverage for new funds from other sources and the recommendation to include other corporate and/or community partners in the eligibility criteria. Consistent with other granting programs, supplemental grants are for those activities that take place in, and serve the people of Vancouver, and do not fund operating or accumulated deficits.
In summary, to be eligible for consideration, supplemental requests should:
· be one-time only and outside of, or in addition to, regular types of activities or programs;
· contribute to achieving the goals outlined in the Institution's strategic plan;
· take place in, and serve the people of, Vancouver;
· leverage significant new funds from other sources;
· be sustainable by the Institution within its own operational resources, if intended to continue in future years.
The following do not qualify for supplemental funding:
· existing activities or operational responsibilities;
· activities which have already commenced or been completed;
· operating or accumulated deficits; or
· capital projects.
The purpose of these guidelines and criteria is to be clear, consistent and fair to all of the institutions, as well as to provide a framework that is consistent with other cultural and community grant programs where supplemental requests are limited to very specific circumstances.
Staff recognize that the institutions will lose some flexibility with the recommended guidelines and criteria. However, the increase in ad-hoc supplemental requests necessitates a more structured approach to reviewing and making recommendations to Council. Staff therefore recommend that the One-Time Supplemental Requests - Guidelines & Criteria for the Major Exhibiting Institutions as outlined in Appendix A be adopted by Council.
FINANCIAL IMPLICATIONS
The "Other" Grants budget designated for the Major Exhibiting Institutions is for the institutions' annual operating grants. It does not include funds for supplemental requests, nor is there a separate budget for consideration of these requests. Therefore, all supplemental requests are reported to Council with Contingency Reserve as the source of funds, and this will continue with future requests.
CONCLUSION
It is evident from the increase in the number and nature of supplemental requests received from the Major Exhibiting Institutions over the past several years that eligibility criteria and guidelines need to be established to address future requests in a consistent and equitable manner. These have been outlined in Appendix A of this report and are recommended for adoption by Council.
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APPENDIX A
PAGE 1 OF 3
MAJOR EXHIBITING INSTITUTIONS
ONE-TIME SUPPLEMENTAL REQUESTS
GUIDELINES & CRITERIA
INTRODUCTION
The City currently provides significant operating funding to five institutions through the Other Grants category of the civic budget: A.S.T.C. Science World, H.R. MacMillan Space Centre, the Vancouver Art Gallery, the Vancouver Maritime Museum and the Vancouver Museum. To qualify, these institutions must be in good standing with the B.C. Registrar of Companies, have an active volunteer Board of Directors, be financially stable with sound administration, and have a year-round schedule of exhibitions, education and public programs with a proven track record of inclusive public service to citizens of Vancouver.
The purpose of supplemental requests is to provide these institutions with a mechanism to apply for funding in extraordinary circumstances that are over and above regular operational functions. Supplemental grants are not intended to fund existing services or programs, multi-year or multi-phased initiatives, capital projects, or be a means by which the institutions increase existing operating grant levels.
As supplemental requests are not expected to be routine or recurring, no grant program or separate budget exists to address them. Council will consider the relative merits of any requests against other draws on the City's Contingency Reserve.
ELIGIBLE ACTIVITY
To be eligible for consideration, supplemental requests should:
· be one-time only and outside of, or in addition to, regular types of activities or programs;
· contribute to achieving the goals outlined in the Institution's strategic plan;
· take place in, and serve the people of, Vancouver;
· leverage significant new funds from other sources;
· be sustainable by the Institution within its own operational resources, if intended to continue in future years.
APPENDIX A
PAGE 2 OF 3
INELIGIBLE REQUESTS
The following do not qualify for supplemental funding:
· operational responsibilities;
· activities which have already commenced or been completed;
· operating or accumulated deficits; or
· capital projects.
EVALUATION CRITERIA
Supplemental grants may be approved at the discretion of City Council. Priority will be given to the following factors in reviewing supplemental requests:
· Feasibility;
· Extent to which request furthers the institution's mandate and strategic plan;
· Demonstrable public benefit;
· Effectiveness and quality of service;
· Extent of community support and inclusion of other community partners;
· Financial and cultural accessibility for the broad community (e.g. affordability, inclusiveness);
· Measurable outcomes;
· Costs;
· Institution's own contribution/commitment;
· Financial support from other sources;
· Demonstrated financial need;
· Number of previous supplemental grants received by the institution; and
· Amount of request in the context of the institution's operational budget.
PROCESS AND APPLICATION REQUIREMENTS
· Supplemental requests should address extraordinary circumstances that have been identified through the organization's planning process, and therefore any supplemental requests should be submitted at the time of the major exhibiting institution's annual operating grant application. Exceptions may be made on rare occasions if unforeseen situations arise.
· Institutions that wish to make a supplemental request should establish the eligibility of their request with OCA staff at least one month prior to submitting an application.
APPENDIX A
PAGE 3 OF 3
· Staff will review the supplemental requests in conjunction with the institutions' annual operating grant review and make recommendations to City Council including terms and conditions of the grant. Council will consider requests at a regular meeting of City Council, or at a meeting of the Standing Committee on City Services and Budgets.
· Depending on the size of the request, grant funds will be released to successful applicants in at least two installments, with the first payment upon commencement of the project or activity after Council approval, and final payment upon acceptance of a final report by OCA.
· Supplemental requests can be submitted once per the City's fiscal year. Previously funded supplemental requests must be completed and reported on before a new request will be accepted.
CONDITIONS OF ASSISTANCE
Council may impose certain terms and conditions on any supplemental grant. In addition, the following terms and conditions will apply to all grants made:
· Any changes in activity for which a grant is provided must be approved in advance by the City's Office of Cultural Affairs.
· In the event that the funds are not used as described in the application, or if the activities are completed without requiring the full use of the City funds, then grant funds must be repaid to the City.
· The Institution will keep proper books of accounts of all receipts and expenditures relating to the grant, and will provide supporting financial documentation as part of a final report within 60 days of the completion of the activity.
· The support of the City of Vancouver must be appropriately acknowledged on all promotional and written materials, and at all promotional or celebratory activities related to the funded activity.
October 2003
