ADMINISTRATIVE REPORT

Date: May 19, 1998

Author/Local: Sue Harvey/6001

CC File No. 4008

TO:	Standing Committee on City Services & Budgets
FROM:	Directors of Finance and the Office of Cultural Affairs
SUBJECT:	Vancouver Museum - Annual Report and Operating Grant Request

INFORMATION

A.THAT Council receive the 1998 Annual Report from the Vancouver Museum Commission attached to this report as Appendix "A".

RECOMMENDATION

B.THAT an operating grant of $630,800 be approved to the Vancouver Museum Commission; source of funds to be the 1998 "Other" Grants budget.

C.THAT a supplementary grant of $200,000 be approved to the Vancouver Museum Commission; source of funds to be the 1998 "Other" Grants budget.

GENERAL MANAGER'S COMMENTS

The General Managers RECOMMEND approval of B and C.

CITY MANAGER'S COMMENTS

The City Manager notes that this is the final installment of the three-year supplementary grant intended to provide for strategic investment in the Museum's operational revitalization. Council may wish to meet with Vancouver Museum Commission in the fall to review the progress made and future plans.

COUNCIL POLICY

Council has approved annual operating grants to the major exhibiting institutions to support their ongoing operations since their formation as independent non-profit societies in 1971. These grants are escalated each year by the negotiated wage increase in the CUPE 15 Collective Agreements.

In 1996 Council approved in principle supplementary funding of up to $200,000 per year for a maximum of three years to the Vancouver Museum Commission to assist with the revitalization of the Vancouver Museum.

Approval of grants requires eight affirmative votes.

PURPOSE

This report provides a review of the Vancouver Museum's 1997 activities, and presents for Council's consideration their 1998 Operating and Supplementary grant requests.

BACKGROUND

The City of Vancouver owns an extensive and valuable collection of archeology, ethnology, human and natural history artifacts which it has entrusted to the Vancouver Museum Commission. The Museum was operated by the City until 1972 when it became part of the Vancouver Museums and Planetarium Association. In 1987 Council agreed to the dissolution of the VMPA into three distinct organizations: the Vancouver Maritime Museum Society, the Vancouver Museum Association and the BC Space Sciences Society.

In 1996, Council approved a series of actions to undertake the process to revitalize the Vancouver Museum including the creation of a new governing society, the Vancouver Museum Commission (VMC). Over the past 18 months the VMC has undertaken a major capital and operational revitalization program. New facilities and exhibits have been introduced to recapture former audiences and attract new visitors.

A new operating/lease agreement is being negotiated with the VMC, the previous agreement with the VMA having been terminated. One of the proposed changes to this new agreement will be the requirement for an annual performance review by Office of Cultural Affairs staff and a report to Council as part of their grant request. In addition to a financial evaluation, the VMC's performance will be measured against a set of cultural objectives developed together with the VMC and as recommended by the museum consultants in their 1995 report.

DISCUSSION

1997 Year in Review

The Vancouver Museum Commission has submitted an annual report for staff review. Their Executive Summary and 1997 financial statements are attached as Appendix "A".

The VMC have concentrated their energies in restoring the basic infrastructure necessary to operate a major exhibiting institution. Accomplishments in the "public realm" in 1997 include:

·Capital Improvements include the completion of Phase 1 (A-wing galleries), Phase 2a (lobby, common areas, gift shop), and the commencement of Phase 2b (orientation gallery), scheduled to open April 19, 1998.

·A series of well-received exhibitions in the newly-renovated A-wing galleries. Perhaps the most successful, Through My Eyes: Northwest Coast Artifacts Through The Eyes of Contemporary First Nations People brought back to the Museum members of Vancouver's first nations community.

·A series of projects to digitize and disseminate the collection through technology partnerships including the Virtual Museum ( a collaboration with the Vancouver Art Gallery, the Museum of Anthropology, and others); the Yip Family Web Site presented on School Net; and the creation of CD-ROMs "A Doll's Story" and "Child Life" to showcase the Museum's collection of toys.

Many of the improvements have been in developing and implementing operational partnerships, processes and systems - the foundations of which will ensure the Vancouver Museum's long term viability. Highlights include:

·A series of operational partnerships with the Pacific Space Centre to improve customer service in a cost effective manner - joint Admissions and Guest Services departments, joint Health & Safety Committee, joint renovations for lobby and common areas. Also, partnership initiatives with the PSC and the Vancouver Maritime Museum for joint ticketing, marketing and promotions.

·The creation of an exhibition program committee and a process to review all program proposals to ensure that all future exhibitions are appropriate to the Museum's mandate and within the financial parameters sets by the Commission.

·Complete revision of the budgeting and accounting processes to ensure accurate and timely reporting.

Staff have reviewed the VMC's activities and believe that they have made considerable progress in meeting the cultural objectives (attached to this report as Appendix B) approvedby Council in 1995 and commend the Commissioners and staff for their extraordinary efforts. Staff also commend both the VMC and PSC for the real gains made in their collaborative partnership.

Areas which will require more focus in 1998 will be in fundraising, education and public programs with a significant increase in donations, sponsorships and earned revenues.

Operating Grant Request

The Vancouver Museum Commission has submitted a 1998 operating grant request of $630,800 to the City, based on the 1997 approved funding level.

The 1998 grant has been increased by 1% over the 1997 grant to cover inflation based on Council policy. OCA staff have reviewed the budgets and assumptions and support the financial projections as reasonable in relation to recent experience at the Vancouver Museum, as well as other local exhibiting institutions.

A copy of their financial statements for the year ending December 31, 1997 and budgets for the 1998 year are attached to this report as Appendix C. The Museum finished the year with a modest surplus of $45,570, representing 4% of the total budget. The Museum increased fundraising and gift shop revenues over the previous year, however, revenues gains in ticket sales were modest as the Museum was closed for renovations during part of the summer season. The VMC are budgeting for, and staff anticipate that there will be a significant improvement in earned income in 1998.

Supplementary Grant Request

Council’s approval in principle for three years of supplementary grants to the Museum was based on the transition plan "Blueprint for the Future". Anticipated incremental expenditures requiring supplementary funds included one-time costs associated with the recruitment of staff, costs associated with organizational change, temporary exhibits until such time as the permanents exhibits are revitalized, acquisition of collections management software, assistance in collection registration, and revitalization of the education programs.

An accounting of the VMC's application of the 1997 Supplementary Grant and a proposal for the 1998 request is attached to this report as Appendix D. Staff have reviewed the 1997 activities and believe that the supplementary funds have been used appropriately.

The VMC is requesting the final $200,000 allocation of supplementary funds for 1998 to be used to re-establish educational and public programs, for a major marketing initiative, to continue with the collection organization and management, and to bring in majorinternational exhibits (Hello Again, Backyard Biodiversity) to build audiences while the permanent exhibits are being revitalized. Subject to Council’s approval, staff recommend disbursement of the supplementary grant as follows: $100,000 immediately, and the balance on September 30, 1998.

Note:Attachments to this report that do not have electronic copy are on file in the City Clerk's Offie.

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APPENDIX "B"

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CULTURAL OBJECTIVES

VANCOUVER MUSEUM

The Vancouver Museum Commission shall fulfil the following civic social and cultural objectives in all of its policies, planning and implementation strategies:

·320·to operate a museum for charitable purposes in a relevant, accessible, consultative and entrepreneurial style which is a source of information and service to the residents of, and visitors to, the City of Vancouver;·320

·320·define its thematic focus as the human and natural history of the City of Vancouver;·320

·320·to secure, collect, preserve and manage the present and future collections of the Museum and to hold the collections in trust for the City of Vancouver;·320

·320·to meet all current museological standards for the documentation and conservation of the collection;·320

·320·provide long-term and changing exhibits and programs of a high standard which shall be directed to the major theme of the Vancouver Museum;·320

·320·provide a range of educational programs which serve the needs of the educational authorities;·320

·320·act as an effective tourism destination;·320

·320·develop and maintain excellent relations with the appropriate funding authorities and agencies;·320

·320·undertake to obtain adequate funding from all sources - public, private and earned revenues - to enable the Museum to fulfil its objectives; ·320

·320·provide opportunities for board, staff and volunteer participation, and to extend its services to the general public in a non-discriminatory way;·320

·320·employ a qualified workforce which reflects the diversity of our community;·320

·320·work in co-operation with the Pacific Space Centre to provide a comprehensive and co-ordinated cultural experience for students, residents and visitors;·320

·320· work in co-operation with museums, galleries and other cultural facilities in the Lower Mainland to provide a broad network of cultural experiences; and·320

·320·undertake its work in a manner which demonstrates its accountability, in all aspects of its operations to the City and to the public.·320

(c) 1998 City of Vancouver