SUPPORTS ITEM NO. 4 CS&B COMMITTEE AGENDA JUNE 27, 1996 ADMINISTRATIVE REPORT Date: June 10, 1996 TO: Standing Committee on City Services and Budgets FROM: Director of Finance SUBJECT: 1996 Grant Requests - Major Facilities RECOMMENDATION A. THAT an operating grant of $276,000 be approved to the Vancouver Maritime Museum Society; source of funds to be the 1996 'Other Grants budget. B. THAT an operating grant of $460,600 be approved to the Pacific Space Centre Society; source of funds to be the 1996 'Other Grants budget. C. THAT an operating grant of $655,900 be approved to the Vancouver Museum Association; source of funds to be the 1996 'Other Grants budget. GENERAL MANAGER'S COMMENTS The General Manager of Corporate Services RECOMMENDS approval of A, B and C. COUNCIL POLICY In accordance with the terms of the operating agreements with the Vancouver Maritime Museum Society, the Pacific Space Centre Society and the Vancouver Museum Association, Council has approve annual operating grants to the organisations to support their operations. These grants are escalated each year by the negotiated wage increase in the CUPE 15 Collective Agreements. Any request for support above the base level is considered separately. Approval of grants require eight affirmative votes of Council. BACKGROUND In August 1987, Council agreed to the dissolution of the Vancouver Museums and Planetarium Association into three distinct organisations: the Vancouver Maritime Museum Society, the Pacific Space Centre Society and the Vancouver Museum Association. This was done on the understanding that the cost to the City would not increase as the result of the change. The three organisations have settled their respective collective agreements with CUPE 15. The terms of their 1994/1996 contracts will form the basis for the adjustments to their 1996 operating grants. DISCUSSION In accordance with the terms of the operating agreements with the Vancouver Maritime Museum Society, Pacific Space Centre Society and Vancouver Museum Association, each organisation have submitted their 1996 grant request to the City. The grant requests are based on the 1995 funding level, and adjusted by the increases in the 1994/1996 CUPE 15 collective agreement. 1996 Grant 1995 Grant Difference $ $ $ Van Maritime Museum Soc 276,000 266,900 9,100 Pacific Space Centre Soc 460,600 445,600 15,000 Vancouver Museum Assn. 655,900 636,800 19,100 1,392,500 1,349,300 43,200 As previously approved by Council, the grant to the Vancouver Museum Association will be paid to the Association until the Vancouver Museum Commission is formed and assumes the operating responsibilities for the Museum. At that time, all future grant payments will be directed to the Vancouver Museum Commission instead of the Association, and any further increase in funding to the Vancouver Museum Commission will be the subject of a separate report to Council. As in past years, these grants have been reviewed for financial compliance with the institutions' operating lease agreements. They have not, however, been reviewed with respect to cultural objectives, as recommended in the Vancouver Museum Review staff report. At Council's direction, a review of the City's relationships to these major institutions is currently under-way. Any proposed changes to the operating grant review process will be included in the consequent report to Council. Accordingly, the Director of Finance recommends that an operating grant of $276,000 be approved to the Vancouver Maritime Museum Society; an operating grant of $460,600 be approved to the Pacific Space Centre Society; and an operating grant of 655,900 be approved to the Vancouver Museum Association. The source of funds for the grants is 1996 'Other grants budget. * * * * *