SUPPORTS ITEM NO. 4  
                                                      CS&B COMMITTEE AGENDA
                                                      NOVEMBER 7, 1996     


                              ADMINISTRATIVE REPORT


                                                     Date: October 22, 1996
                                                     Dept. File: VMC10.22  


     TO:       Standing Committee on City Services and Budgets

     FROM:     Director of the Office of Cultural Affairs,
               Director of Finance and the Manager of
               Facilities Development

     SUBJECT:  Vancouver Museum Revitalization Program



     RECOMMENDATION

          THAT Council approve an allocation of $490,000 to fund the  first
          phase of Vancouver Museum Revitalization Program, the move of the
          museum gallery from 'C  Wing to 'B  Wing, in advance of  approval
          of  the  1997  Capital  Budget; interim  financing  from  Revenue
          Surplus.


     GENERAL MANAGERS  COMMENTS

          The General Managers of Community Services and Corporate Services
          RECOMMEND approval of the foregoing.


     COUNCIL POLICY

     On  September 24, 1996,  Council approved  in principle  the 1997-1999
     Capital Plan, including an allocation of $3.0 million to the Vancouver
     Museum Revitalization Program.


     PURPOSE

     The  purpose of this report is to  seek Council s approval to fund the
     first  project  in Phase  1  of  the Vancouver  Museum  Revitalization
     Program, in  advance of approval of  the 1997 - 1999  Capital Plan, in
     order to dovetail  the construction schedule  of the Vancouver  Museum
     with that of the Pacific Space Centre (PSC) currently underway, and to
     meet the Museum s exhibition commitment on February 15, 1997.


     BACKGROUND

     Since February  of 1996, Council has  approved a series of  actions to
     begin a process of revitalization  at the Vancouver Museum,  including
     approval in principle of $3.0 million in the 1997 - 1999 Capital Plan.
     The  Museum s revitalization  project  will make  improvements to  the
     City-owned building  in Vanier Park,  necessary to upgrade  the Museum
     facility  to  contemporary building  codes  and  museum standards,  to
     improve  the lay-out and accessibility  of the museum,  and to provide
     current  and relevant  exhibits necessary  to  attract new  and repeat
     visitors. 
     The Pacific Space Centre, the co-tenant in the building, has also been
     planning  a  major  capital   expansion  project  which  includes  the
     refurbishment  of the  Star  Theatre,  670 m2  of new  space  sciences
     exhibition area,  the "Hot Seat  Experience", a simulated  space ride,
     and  an interactive high-tech theatre.  They will have completed Phase
     1  of their project by late November  and are planning to proceed with
     Phase 2 as soon as possible.


     DISCUSSION

     Both   projects   require   that    the   building   co-tenants   work
     co-operatively.    Staff  are   pleased  to  report  that  since   the
     appointment of  the Vancouver Museum  Commission (VMC), much  work has
     been accomplished in  this area.   The VMC and  PSC have entered  into
     agreements, subject to  the approval  of the City  as Landlord,  which
     cover  the allocation  of space  within the  building, the  sharing of
     capital  costs   relating  to  space   allocations,  and  construction
     protocols, scheduling and activities.

     One  of the results  of these discussions is  an agreement to relocate
     part of  the PSC into  what is currently  museum gallery space.   This
     move  has a  number of  long-term benefits to  both institutions  - it
     locates the PSC ride,  which will generate significant  vibrations, on
     grade  and not  over  the Museum  artifact  collection areas;  and  it
     improves the Museum s layout and access to loading.

     Scheduling  the move  is complex.   The  timing of  the move  needs to
     accommodate the PSC s timetable to access Infrastructure funds and the
     Museum s outstanding exhibition commitments.

     The Museum s  C-wing gallery area will need to be closed to the public
     for a period of three months to undertake the move.  Working together,
     the PSC and VMC have determined that the best time to make the move is
     November 15, 1996, through February  15, 1997.  The Museum has  a firm
     commitment to a  touring exhibition  which must open  on February  15,
     1997.






     If the November  - February period  is not possible,  then the  Museum
     must mount the touring show in the current gallery space and delay the
     move until the exhibition closes in  June 1997.  Undertaking the  move
     during the June  - August period would close the  galleries during the
     key summer months for attendance and revenue-generation.

     The next opportunity would be in October 1997.  The PSC have indicated
     that they  believe a delay until  fall of 1997  would jeopardize their
     Infrastructure funding.

     The VMC and  PSC have approached  the City with  a request which  will
     enable them to proceed in the December 1996 - February 1997 time slot.
     Staff are therefore submitting  a request to Council from  the VMC for
     $490,000 to fund  the first project in  Phase 1 of  the revitalization
     program, the move of the museum  gallery from the 'C  Wing to  the 'B 
     Wing.

     The total VMC capital  revitalization budget is $15 million,  of which
     $3 million  was allocated,  in principle,  in the City s  1997 -  1999
     Capital Plan.  The VMC project has been broken into  two phases. Phase
     1  (project budget  of $4.3  million) will  include reconfiguring  and
     refurbishing the  galleries, infilling  the B-wing courtyard  and some
     exhibition  infrastructure.   In  addition  to the  funds  approved in
     principle through the 1997 - 1999 Capital Plan, the VMC has received a
     donation of $1.2 million and are committed to raising the balance from
     the private sector.

     The VMC s  budget to complete  the move, contained  within the  $4.3 m
     above, is $490,000.   This includes $430,000 in construction  costs to
     install  sprinklers and refurbish the galleries, as well as $60,000 in
     exhibit costs.

     The Museum s  construction budget was prepared based on their Quantity
     Surveyor s estimate and  will be  further amended to  ensure that  the
     project cost will stay  within the funding envelope.   Staff have also
     reviewed the PSC s project to ensure that it has met all of the City s
     conditions  required under  their lease  and through  previous Council
     directions.   Staff  are  satisfied that  PSC  will have  secured  the
     balance  of  the  necessary  private sector  funds  through  a  vendor
     financing arrangement, and that the form of financing is acceptable to
     the Infrastructure Program.

     As well, staff have reviewed the concept drawings generated by the PSC
     and  VMC s space planning consultants  and believe that  they meet the
     needs  of the  PSC, the VMC  and the City.   In order  to complete any
     construction work,  both  societies  will  need  to  comply  with  all
     necessary regulatory approvals.







     Financial Implications

     Council is being requested  to approve the allocation of  the $490,000
     in  advance  of the  approval the  1997  Capital Budget,  with interim
     financing from Revenue Surplus.  However, it is noted that, should the
     Provincial  Government impose  significant reductions  in their  local
     government grant to the City, there will be significant challenges for
     the new Council  to face in  setting the 1997  Operating Budget.   One
     option  that Council would consider  is making reductions  to the 1997
     Capital Budget - Capital from Revenue, and the Museum project might be
     identified as an area to make such reductions.  Regardless,  it is the
     view of staff that the work recommended in this report should proceed,
     even if the balance  of the Museum project is put on  hold to a future
     year.


     CONCLUSION

     In reviewing  the PSC  and VMC s improvement  projects, staff  believe
     that  the benefits of co-ordinating  these two projects has sufficient
     merit to submit this request for  funding to Council in advance of the
     Capital Plan approval process.

     Staff commend  both Societies in forging a closer working relationship
     which  will  benefit  both  institutions, and  most  importantly,  the
     public.



                                *   *   *   *   *