SUPPORTS ITEM NO. 1
CS&B COMMITTEE AGENDA
JULY 10, 1997
POLICY REPORT
FINANCE
Date: July 3, 1997
Dept. File No. 04.11.97SH
CC File: 4002
TO: Standing Committee on City Services and Budgets
FROM: General Managers of Community and Corporate Services
SUBJECT: "St. Roch" - Vancouver Maritime Museum
RECOMMENDATION
A. THAT Council provide a supplementary grant of $41,000 to the
Vancouver Maritime Museum for the period July through
December, 1997 to provide a six-month extension to federal
transitional funding to enable the Vancouver Maritime Museum
to conclude plans for a private sector fund raising campaign
to secure sufficient funds to assume full responsibility for
the ongoing operations of the "St. Roch", source of funds to
be 1997 Contingency Reserve; and
B. THAT staff report back within six months with a review of the
Vancouver Maritime Museum's private sector fund raising plan
and options for the future disposition of the "St. Roch".
COUNCIL POLICY
In February 1995 Council directed staff to secure interim operating
funds from the Federal Government necessary to maintain public access to
the "St. Roch" and report back with the Vancouver Maritime Museum on a
proposal regarding alternative sources of funds from private sector
and/or sponsorships for the ongoing operations of the "St. Roch".
All remaining civic agreements with respect to the "St Roch" expire on
June 30, 1997.
Approval of a grant requires eight affirmative votes.
PURPOSE
This report presents a proposal from the Vancouver Maritime Museum (VMM)
for a six-month extension of transition funding for the "St. Roch" to
enable the VMM Society to complete plans for a major fund raising
campaign.
BACKGROUND
The "St. Roch" was built in North Vancouver in 1928 and was active in
the 1930s as a supply ship and floating RCMP detachment in the Arctic.
Between 1940 and 1944, the "St. Roch" navigated the Northwest Passage
affirming Canada' sovereignty over the Arctic during the war. On its
retirement from active service, the "St. Roch" was returned to Vancouver
and a community group formed to seek a "home" to honour the ship's
achievements. As part of a B.C. Centennial project, the City bought the
"St. Roch" (for $5,000) from the RCMP and moved the ship to an outdoor
site at the new Maritime Museum. However, the ship began to deteriorate
and in 1965 the City entered into an agreement with the Government of
Canada through the Department of Northern Affairs wherein the Federal
Government undertook to restore the vessel in exchange for the City
agreeing to build and maintain a shelter for the "St. Roch" open to the
public for a period of 50 years. This agreement was replaced in 1990
with a Lease and License Agreement which expired in January 1996, and
with a subsequent agreement which expires on June 30, 1997.
The City retains ownership of the "St. Roch" and currently provides
capital and operating support through grants to the Vancouver Maritime
Museum and through the City's Building Management Department of
janitorial services, grounds and building maintenance. Support through
the City to the Vancouver Maritime Museum in 1996 for its operations
including the "St. Roch" were:
Operating Grant
$276,000.
"St. Roch" Supplementary Grant (source of funds Fed. Govt.)
$75,000.
Additional "St. Roch" Supplementary Grant
$7,200.
Building Maintenance
$158,300.
Total:
$516,500.
In addition, the City provided $80,000 in Capital Funds in 1995 for the
physical integration of the "St. Roch" and VMM operations.
DISCUSSION
In 1995, when the Department of Canadian Heritage (DCH) through Parks
Canada withdrew from operation of the "St. Roch", the City entered into
an agreement with the Vancouver Maritime Museum to operate self-guided
tours for the public as part of their public programs and exhibitions.
Transitional funds from the Federal Government of $150,000 were provided
to the VMM to offset the additional staff costs of providing these
tours. Actual costs have exceeded the Federal contribution, and the
City has provided these supplementary funds to the VMM.
The transition funds have provided a two-year opportunity for the VMM to
assimilate the St. Roch into their operations. It is now an integral
component of their operations and is both an important attraction and
income generator for the VMM. Since assuming operations of the St.
Roch, the VMM have enjoyed a significant increase in admission revenues.
Expenses however, continue to run higher than the earned ticket revenue.
As with other aspects of the operations, the gap between earned revenues
and expenses are made up of a combination of grant and private sector
donations. Staff believe that the City's annual operating grant
provides an appropriate level of support for the full operations of the
VMM including the St. Roch, and it is now time for the Museum to assume
the responsibility for fund raising to close the gap between the
operating expenses and earned revenues and civic support.
When Council considered the St. Roch in 1995 staff were directed to
report back with the Vancouver Maritime Museum on a proposal regarding
alternative sources of funds from private sector and/or sponsorships for
the ongoing operations of the "St. Roch".
The VMM are currently working with the RCMP to develop a national fund
raising campaign based on the recreation of the "St. Roch's" voyage
through the Northwest Passage, in celebration of the RCMP s 125th
anniversary and the creation of Nunavut in 1999. While no formal plan
has been submitted to the City, the VMM have indicated that they are
close to finalizing an agreement with the RCMP and staff will report
back to Council with the details of the fund raising plan in the fall.
If the Vancouver Maritime Museum is unable to commit to a plan to secure
alternative sources of funds through fund raising or sponsorship within
the six-month extension provided through this recommendation, staff will
report back with options for Council s consideration for the future
disposition of the "St. Roch" including:
closing the St. Roch to the public but maintain it for public
viewing through glass walls;
issuing a public tender call to determine if an alternative
organization, business or agency would be interested in operating
the St. Roch on site; or
continued funding to the Vancouver Maritime Museum.
Deaccessioning does not seem to be a viable option. Moving the "St.
Roch" would almost certainly be prohibitively expensive and to date, no
recipient/buyer has been identified with funds to purchase and move the
ship. Even if a buyer were to be identified, the Executive Director of
the VMM advises that the ship would probably not survive a move.
CONCLUSION
Staff recommend that the Vancouver Maritime Museum be given a six-month
opportunity to put in place a plan to secure alternative sources of
funds through fund raising or sponsorship. If the Vancouver Maritime
Museum is unable to commit to such a plan, staff will report back to
Council with options for the future disposition of the "St. Roch".
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