SUPPORTS ITEM NO. 3
   CS&B COMMITTEE AGENDA
   JULY 24, 1997


                             ADMINISTRATIVE REPORT

                                           Date: July 03, 1997
                                           CC File: 2202

   TO:       Standing Committee on City Services and Budgets

   FROM:     Director of Finance 

   SUBJECT:  1997 Grant Requests - Major Facilities


   RECOMMENDATION

        A.   THAT an operating grant of $262,800 be approved to the
             Vancouver Maritime Museum Society, with the source of funds to
             be the 1997 'Other' Grants budget.

        B.   THAT an operating grant of $438,600 be approved to the Pacific
             Space Centre Society, with the source of funds to be the 1997
             'Other' Grants budget.

        C.   THAT an operating grant of $624,600 be approved to the
             Vancouver Museum Commission, with the source of funds to be
             the 1997 'Other' Grants budget.

        D.   THAT a supplementary operating grant of $200,000 be approved
             to the Vancouver Museum Commission, with the source of funds
             to be the 1997 'Other' Grants budget.

   GENERAL MANAGER'S COMMENTS

        The General Manager of Corporate Services RECOMMENDS approval of A,
        B, C and D.

   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, now the Vancouver Museum Commission,
   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.

   City Council, on May 26, 1996, as part of financial package to
   restructure the Vancouver Museum Association to form the new Vancouver
   Museum Commission, approved a three year supplementary grant program of
   $200,000 per year, starting in 1996.

   City Council, on February 20, 1997, approved a reduction of $180,000 in
   funding to all the major exhibiting organisations. The allocation of the
   reduction, as confirmed by Council on March 13, 1997, was made based on
   the 'value' of benefits received by the organisations from the City.

   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, now the Vancouver Museum
   Commission. This was done on the understanding that the cost to the City
   would not increase as the result of the change.

   DISCUSSION

   Operating Grants

   In accordance with the terms of the operating agreements with the
   Vancouver Maritime Museum Society, Pacific Space Centre Society and
   Vancouver Museum Commission, each organisation has submitted their 1997
   grant request to the City. The grant requests are based on the 1996
   funding level, with no inflationary allowance included at this time,
   adjusted by the reductions approved by Council on March 13, 1997.


                                1996 Grant  1997 Grant Reduction
                                                 $         $$

   Maritime Museum Society       276,000      262,800    13,200
   Pacific Space Centre Society  460,600      438,600    22,000
   Vancouver Museum Commission   655,900      624,600    31,300
                               1,392,500    1,326,000    66,500


   Supplementary Grant:  Vancouver Museum Commission

   City Council, on May 26, 1996, approved the creation of the Vancouver
   Museum Commission to replace the Vancouver Museum Association as the
   caretaker of the Vancouver Museum.  To assist the Commission to
   establish and put in place a viable business plan, Council also approved
   a three year supplementary grant of $200,000 per year, starting in 1996.
   Recommendation D provides for a continuation of that supplementary grant
   in 1997.

    
   Vancouver Maritime Museum:  Display of the St. Roch

   The Vancouver Maritime Museum Society took possession of the RCMP vessel
   St. Roch and its enclosure in 1996 following an decision by the federal
   government to relinquish control of the vessel.  Council committed
   $80,000 to link the two buildings together, making the St. Roch an
   integral part of the Maritime Museum.  Council also provided $82,200 to
   the Society to offset the additional operating costs associated with the
   St. Roch with $75,000 funded by the federal government and $7,200 by the
   City.

   Discussions with respect to the future of the St. Roch have been
   undertaken between the City (Cultural Affairs and Corporate Services)
   and the Museum Society, with a view to establishing a longer term
   arrangement for the care and exhibition of the St. Roch.  The operating
   grant recommended in this report does not include any provision for the
   St. Roch beyond the basic operating agreement.  This will be reported
   separately. 

   FINANCIAL IMPLICATIONS

   The source of funds for the grants is the 1997 'Other' grants
   allocation.


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