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CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
June 16, 2004 | |
Author: |
Karen Hasselfelt | |
Phone No.: |
604-871-6045 | |
RTS No.: |
04143 | |
CC File No.: |
4008/2051 | |
Meeting Date: |
July 8, 2004 |
TO: |
Standing Committee on City Services and Budgets |
FROM: |
Directors, Office of Cultural Affairs and Finance |
SUBJECT: |
Vancouver Museum - Annual Review & 2004 Operating Grant Request |
RECOMMENDATION
THAT Council approve an operating grant of $676,200 to the Vancouver Museum Commission; source of funds to be the 2004 "Other" Grants budget.
GENERAL MANAGERS' COMMENTS
The General Managers of Community and Corporate Services RECOMMEND approval.
COUNCIL POLICY
Council has approved annual operating grants to the Vancouver Museum to support ongoing operations since its formation as an independent non-profit society in 1971.
Approval of a grant requires eight affirmative votes.
Since February of 1996, Council has approved a series of actions to revitalize the Vancouver Museum, including a new governance structure, supplemental grants, and approval of $3 million in several stages from the 1997-1999 Capital Plan. Council approved Phase 1 funding of $490,000 on November 7, 1996, Phase 2 funding of $850,000 in February 1997 and the Phase 3 allocation of $1,660,000 was approved on June 17, 1999.
PURPOSE
This report provides background on the Vancouver Museum, a review of the organization's 2003 activities and recommends a 2004 Operating Grant for Council's consideration.
BACKGROUND
The Vancouver Museum has been the keeper and interpreter of the City's history since 1894, and since inception, has held the City's collections in trust for the citizens of Vancouver. The Vancouver Museum collects, preserves, researches and exhibits artifacts and specimens that illuminate the human and natural history of Vancouver.
The Vancouver Museum was a department of the City until 1971, when all operations save the building management functions were entrusted to an independent non-profit society, the Vancouver Museums and Planetarium Association (VMPA). In 1987, the VMPA dissolved and operations became the responsibility of three independent non-profit societies the Vancouver Museum Association (now the Vancouver Museum Commission), the Vancouver Maritime Museum Society, and the B.C. Space Sciences Society (now the H.R. MacMillan Space Centre Society).
The Vancouver Museum is governed by the City-appointed Vancouver Museum Commission and employs 12 full-time, 4 part-time and 13 seasonal staff. Over 100 volunteers provide 5,300 hours of service to visitors and the organization. The Vancouver Museum continues to occupy the City-owned building in Vanier Park that it shares with the H.R. MacMillan Space Centre. In addition to capital and operating support through grants to the Vancouver Museum Commission, 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 and Management department. Table 1 reflects the Museum's operating sources of revenue, including City support (56% of revenues from all sources).
The revitalization of the Museum and the retelling of The Vancouver Story is a multi-year $8.9 million project that began in 1996. The first three phases of the capital project are complete improvements to the public areas of the museum, a new orientation gallery, upgrades to `A' wing, and the opening of the Joyce Walley Learning Centre (`Walley wing').
2003 Year in Review
The new 1950's Gallery opened in January and is the beginning of the refurbishment of the galleries which tell The Vancouver Story. Base building renovations were also completed in two galleries in `C' wing to prepare them for new exhibits on Vancouver's history from the 1960's through to the 1980's. With the completion of this work, the Museum focussed on raising funds for the next phase of its capital program. The Museum was successful in its application for Canada/BC Infrastructure Program funding and was awarded $2 million towards the final phase of this capital project.
In addition to the existing permanent exhibition galleries, the Museum produced several new temporary exhibitions:
· China and Beyond: The Legacy of a Culture an exhibit developed in collaboration with, and from the collections of the University of Victoria, the Maltwood Museum & Art Gallery, and the Art Gallery of Greater Victoria;
· Opium: The Heavenly Demon explored the impact, influence and prevailing stereotypes associated with this drug, developed in partnership with the Chinese Cultural Centre Museum and Archives;
· Unmentionables provided an in-depth look at the history of women's and men's undergarments from 1800-1960; and
· Geisha Life a travelling exhibit from the Art Gallery of Greater Victoria presented clothing, personal accessories and woodblock prints to illuminate the life of a Japanese geisha.
Working with a teachers' advisory group and the Vancouver School Board, the education department offered 20 curricula-based programs, in addition to school tours developed for the temporary exhibitions. The Museum also collaborated with the Vancouver Writer's Festival to offer school programs that fit with the English Language Arts curriculum, and in partnership with local book publishers, launched several new books by local authors through its museum book club. The Museum also worked with many affiliate organizations to enrich its public programming through heritage excursions, neighbourhood walks and lecture series.
2004 Plans
The focus for the Museum this year will be to deliver programs and sustain operations within a balanced budget, and simultaneously, to continue with its capital revitalization program. The Museum is preparing to enter the final phase of construction that will include mechanical, sprinkler and seismic upgrades to `B' Wing, as well as the rejuvenation of the remaining permanent galleries which tell The Vancouver Story. The Museum has $3 million in place to begin this next phase and has developed exhibit content for two of the new galleries. The Museum must raise $1.3 million from other sources, including the private sector, to complete the capital revitalization project. The fund raising committee has set a larger goal of $2 million, in order to raise funds for both the capital project and the operating endowment.
While the capital program progresses on refurbishing the permanent galleries, several new temporary exhibitions are planned for 2004/05:
· Skateboarding in Vancouver provides an in-depth look at the history of skateboarding and stories on skateboarding culture in Vancouver;
· Meet the Sasquatch explores the evidence for and against the existence of the Sasquatch through original documents, plaster casts and film;
· By Herta features distinctive lines of ceramics ware that were developed in Vancouver from 1955-1967; and
· Lost Nuke documents the first nuclear accident to take place in BC in 1952.
Starting in 2004, the Museum plans to highlight the range and quality of the City's collection in a project that will ultimately display several thousand objects that would otherwise remain in storage. "Treasures" is a long-term exhibition that will also enable the Museum to carry out important work on the collection, as research, documentation, condition reports, and conservation will be completed on each artifact before it goes on exhibition.
DISCUSSION
The Museum experienced both successes and challenges in 2003 as it continued with executing its capital plan. The Museum made progress in increasing attendance, provided a wide range of quality exhibitions and programs to the public, and secured financial support from other levels of government for the capital revitalization. However, the Museum continues to have the challenge of expanding its resources to keep pace with operational requirements, especially in the areas of staffing, collections management, marketing and promotion. Currently, most of the funds raised by the Museum are related to the capital project and are not available to offset the considerable operating overhead required to sustain the Museum.
In addition to realizing the capital plan, developing audiences and growing attendance is a priority in the Museum's 2003-2005 Strategic Plan. As illustrated in Table 2, both school and public attendance increased in 2003; total paid attendance was up 19% to 53,210 and school attendance increased by 33% over the previous year. Staff note that the increase in admission prices in the fall of 2002 did not adversely affect paid attendance this past year, and furthermore had a positive effect on admissions revenues, which increased by 30%, the highest since 1996.
Capital revitalization has had an impact on several areas of the Museum's operations. As experienced with the construction of the Walley wing, many challenges arose from being open to the public while under construction, not least of which was financial. Construction affected earned revenues and strained both the operating budget and staff. Core staff were redirected to work on the capital project and staff resources were diverted away from operations and revenue generation. Some of these factors can potentially contribute to operational and financial challenges again in this last phase of construction.
More significantly, the elimination of the Marketing Manager and Development Director positions in 2002 to reduce expenses has affected the Museum's ability to grow its earned revenues and private sector donations. Fund raising revenues continue to be very low relative to other comparable organizations. The target for operational fund raising and donations has been scaled back from $40,000 to $20,000 for 2004 in the latest business plan projections, in anticipation of the capital project drawing funds away from operations.
However, capital projects can also generate interest and encourage new contributions by raising the profile of the organization. For instance, while sponsorship revenues have also been quite low over the past few years, the Museum's sponsorship target of $90,000 for 2004 has already been achieved. Therefore, the Museum has the potential to increase its fund raising targets to offset lower revenues in other areas.
The VMC concluded 2003 with an excess of expenditures over revenues of ($37,804) on a budget of $1.5 million, which has been offset by its operating reserves and leaves an accumulated surplus of $21,906. The Museum's financial statements for the year ending December 31, 2003 are attached to this report as Appendix "A". The Museum's accumulated surplus has been eroding and, in addition to depleting the organization's cash reserves, will not be available to maintain the Museum's positive financial position for much longer. Staff are concerned that this pattern is the reverse to what needs to occur, as the Museum is not in a position to reduce expenditures further without compromising operations. The Museum has committed to a three-year business plan with balanced budgets each year, so it is essential that Museum Commissioners and staff make fund raising and development top priorities.
FINANCIAL IMPLICATIONS
Staff recommend a 2004 operating grant in the amount of $676,200 based on an inflationary increase of 2.0% over the 2003 grant as approved by Council in the 2004 Operating Budget. The source of funds is the "Other" Grants allocation in the 2004 Operating Budget.
CONCLUSION
Throughout the course of its revitalization program, the Museum has had to face multiple challenges as it continues operations while executing the capital project. As the next phase of the capital program gets underway, Museum Commissioners and staff will need to be actively engaged in both annual and capital campaigns to meet the operational and capital budget commitments. The Museum has the opportunity to achieve these goals by building on its successes, including the opening of the Joyce Walley Learning Centre and the new 1950's Gallery. Staff are recommending a 2004 operating grant of $676,200 to the Vancouver Museum Commission.
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