ADMINISTRATIVE REPORT

Date: April 27, 1998

Author/Local: J. Beresford/7789

CC File No. 2201

TO: Standing Committee on City Services and Budgets

FROM: Director of Finance

SUBJECT: 1998 Grant Request - Vancouver Art Gallery Association

RECOMMENDATION

A.THAT a 1998 operating grant of $1,831,400 be approved for the Vancouver Gallery Association; source of funds to be the ‘Other Grants - Major Facilities’ allocation in the 1998 grants budget.

CONSIDERATION

B.THAT a grant of $47,250 be approved to the Vancouver Art Gallery Association to fund a Vancouver Art Gallery Master Plan as detailed in Appendix A to this report; source of funds to be the 1998 Contingency Reserve, and contingent upon the Vancouver Art Gallery Association raising their share of the required funding.

C.THAT a grant of 38,500 be approved to the Vancouver Art Gallery Association to fund replacement of Gallery Flooring; source of funds to be the 1998 Contingency Reserve, and contingent upon the Vancouver Art Gallery Association raising their share of the required funding

GENERAL MANAGER’S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of A and submits B and C for CONSIDERATION.

COUNCIL POLICY

On March 31, 1992, City Council approved a change in the basis of the City’s financial support to Vancouver Art Gallery Association from a grant to support specific items to a grant supporting general operations. Funding for one-time new and non-recurring items continues to be considered outside of the base grant.

On April 19, 1994, when dealing with the 1994 - 1996 Budget Management Program proposals, Council approved a 5% reduction to the 1993 funding base of the operating grants to the Museum Associations and the Vancouver Art Gallery Association.

On February 20, 1997, Council approved a reduction of $180,000 in funding to major exhibiting organizations receiving City funding. The allocation of the recaution to various organizations was confirmed by Council on March 13, 1997.

Approval of grants requires eight affirmative votes of Council.

PURPOSE

This report presents the 1998 operating grant requests for the Vancouver Art Gallery Association for Council’s consideration. In addition to the basic grant, funding for three new and non-recurring items is presented.

BACKGROUND

The operating grant to the Vancouver Art Gallery Association is adjusted annually by a blended inflation factor determined by the Director of Finance. This adjustment factor is calculated using the ratio of the salary and benefit costs to other costs in the Vancouver Art Gallery’s operation, and weighted by the average of the CUPE 15 negotiated settlement and the City’s general inflation factor for the year.

As part of the 1995 consultant's study of the Vancouver Museum operations, the need to expand the basis for the City's review of the annual grant request from the major exhibiting institutions was identified. Proposed changes to the review process included the requirement for an annual performance review by Office of Cultural Affairs staff and a report to Council as part of their grant request. Office of Cultural Affairs staff have undertaken such a review for some but not all of the City's major exhibiting institutions. Resources permitting, it is anticipated that a full cultural review for all grant requests will be phased in over the next three years.

1998 OPERATING GRANT

The 1998 operating grant to the Vancouver Art Gallery Association has been calculated as follows:

1997 Base operating grant $1,813,300

Inflation Adjustment @ 1% $ 18,100

1998 Recommended Grant $1,831,400

The inflationary adjustment recommended reflects a composite rate comprising the approved CUPE 15 wage settlement for 1998 (1%) and the 1% increase in other expenditure areas utilized in developing departmental budgets.

Funding for the 1998 Operating Grant to the Art Gallery Association, recommended at $1,831,400 is available in the 1998 Grants Budget.

NEW and NON RECURRING ITEMS

Two new and non-recurring requests totalling $85,750 have been submitted by the Vancouver Art Gallery Association.

1.Vancouver Art Gallery Master Plan. - City Share $47,250

This funding request is to support a comprehensive year-long Master Plan for institutional and facility development. The detailed request is appended to this report. It is the intention of the Association to develop a Master Plan that will define a vision of the Gallery’s long-term (10 - 20-year) future, address complex questions of tenancy and responsibility for building grounds, outline specific facility requirements, develop funding strategies, and plan the launch of a Capital Campaign. The Master Plan will formulate redevelopment proposals for the existing facility and grounds, so they reflect the Gallery’s mission and strategic priorities. A key component of the Master Plan is a Design Brief which outlines precise requirements for a redevelopment facility. This NNR proposal, requests funding to hire a museum functional planner to prepare this Design Brief.

The total cost of the proposed Vancouver Art Gallery Master Plan is $176,000 with the major share provided through Vancouver Art Gallery Association fund raising activities. The budget for the Master Plan is detailed below.

MASTER PLAN BUDGET

Vancouver Art Gallery Fund raising $ 17,000 (Confirmed)

Vancouver Art Gallery Fund Raising $ 73,000 (To be raised)

Department of Canadian Heritage $ 28,750 (Pending)

Vancouver Arts Stabilization Fund $ 10,000 (Confirmed)

City of Vancouver NNR $ 47,250 (Requested)

TOTAL $176,000

Staff note there may be significant future financial implications for the City arising from the Master Planning exercise, including both capital and building management issues. Staff is presenting this item for consideration on the express understanding that Council’s financial commitment is limited to the Master Plan study and that any further items arising from the study will be forwarded to Council separately for consideration.

2.Replacement of Gallery Floor Covering - 4th Floor Gallery. City Share $38,500

The current flooring is carpet that has been in place for 16 years. In addition to normal wear and tear of carpet in a high traffic public building and regular change over of the various exhibits, it has been badly stained with oil and chemicals during maintenance of the heating system and escalator repairs.

The current floor cover presents a poor image for visitors and is not compatible with the exhibits on display. The 4th floor will house some of the Gallery’s most popular works of Emily Carr.

The material recommended for the replacement is maple wood flooring. It is expected to have an indefinite useful life and is low maintenance. It is suitable for heavy wear activities such as exhibit change overs, group tours, spill resistance and wear and tear by children. A side benefit will be a more visually appealing surrounding in which visitors can enjoy the Emily Carr exhibit. Proper appointment and careful presentation of the paintings are essential to the appreciation of this important artist’s works.

The Manager of Building Management Services, Corporate Services has reviewed the request and has confirmed that the work is necessary and that the cost estimate is reasonable. The total cost of the replacement flooring is $77,000, of which 50% or $38,500 will be funded by Vancouver Art Gallery fund raising activities, with the remaining $38,500 City share requested through this NNR proposal.

Outstanding Issue:

In addition to the NNR items submitted, outstanding remains the issue of the Vancouver Art Gallery replacement Security System. Council approved $60,000 in 1996 and $90,000 in 1997 the first two installments of the replacement program. The remainingphase will involve replacement of cabling, controllers and monitors. Staff has included $135,000 sufficient to complete the installation of the security system in the 1998 Supplementary Capital budget.

Funding for the New and Non-recurring items are submitted separately for Council’s consideration. The source of funds for these requests, if approved, will be Contingency Reserve.

NOTE: Attachments to this report are on file in City Clerk's Office

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(c) 1998 City of Vancouver