ADMINISTRATIVE REPORT

Date: May 21, 1998

Author/Local: Sue Harvey 6001

CC File No. 4002

TO:	Standing Committee on City Services and Budgets
FROM:	Director, Office of Cultural Affairs and Comptroller Budgets & Research
SUBJECT:	Vancouver Maritime Museum

RECOMMENDATION

A.THAT an operating grant of $265,400 be approved to the Vancouver Maritime Museum; source of funds to be the 1998 "Other" Grants budget.

B.THAT a supplementary grant of $25,000 be approved to the Vancouver Maritime Museum to compensate for lost revenues in 1997 resulting from the cancellation of tour bus services; source of funds to be the 1998 Contingency Reserve.

C.THAT Council receive the Vancouver Maritime Museum's "St. Roch" fund raising strategy as outlined in this report and direct staff to monitor and report back within the year on their progress.

D.THAT Council approve a 1998 supplementary grant of $82,000 to the Vancouver Maritime Museum as transitional funding for the year ending Dec. 31, 1998 for the operations of the "St. Roch"; source of funds to be the 1998 Contingency Reserve.

E.THAT Council approve a review of options for the future operations of the Vancouver Maritime Museum including the St. Roch, based on the draft terms of reference attached to this report as Appendix "A", at a cost not to exceed $30,000; source of funds to be Contingency Reserve;

- OR -

CONSIDERATION

F.THAT Council reaffirm its commitment to the Vancouver Maritime Museum in its current location in Kits Point noting that it may result in building and program expansion on site.

GENERAL MANAGERS' COMMENTS

The General Managers of Community and Corporate Services RECOMMEND approval of A through E and submits F as an alternative to E for Council's CONSIDERATION.

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.

The City's relationship with the Vancouver Maritime Museum (excluding the St. Roch) is outlined in an operating/lease agreement in effect until May 31, 2000. The agreement between the City and the VMM with respect to the St. Roch expired on June 30, 1997.

Approval of a grant requires eight affirmative votes.

PURPOSE

This report seeks Council approval of the Vancouver Maritime Museum's 1998 Operating Grant request, supplementary funds to compensate for losses incurred in the 1997 season as a result of the cancellation of tour-buses, and Council's confirmation regarding future operations of the Vancouver Maritime Museum. In addition, the report provides information on the VMM's proposed fund raising strategies to secure an endowment for the St. Roch and seeks Council's approval of a further year's supplementary funding for the operations of the St. Roch.

BACKGROUND

The Vancouver Maritime Museum (VMM) has operated in its current location in Kits Point since 1958. The VMM was operated by the City until 1972 when it became part of the Vancouver Museums and Planetarium Association. In 1987 Council agreed to thedissolution of the VMPA into three distinct organizations: the Vancouver Maritime Museum Society, the Vancouver Museum Association and the BC Space Sciences Society.

The City currently provides capital and operating support through grants to the Vancouver Maritime Museum as well as janitorial services, grounds and building maintenance and through the City’s Building Management Dept.

The St. Roch National Historical Site is housed in a City-owned structure adjacent to the Vancouver Maritime Museum. Built in 1965, the St. Roch shelter was designed as a temporary structure. While the City owns the St. Roch, it was restored and was operated by the Government of Canada through Parks Canada until 1995 when the Federal Government withdrew its support. The Federal Government provided $75,000 per year for two years as transitional funds which Council directed to the VMM as supplementary grants to help offset the additional operating costs associated with the St. Roch. Some capital funds were also granted to assist in assimilating the St. Roch into the operation of the VMM including improvements to the entrance and signage.

DISCUSSION

Operating Grant Request

The Vancouver Maritime Museum has submitted a 1998 operating grant request of $265,400 to the City, based on the 1997 approved funding level. OCA staff have reviewed the budgets and assumptions and support the financial projections as reasonable in relation to recent experience at the Vancouver Maritime Museum, as well as other local exhibiting institutions.

A copy of the VMM's financial statements for the year ending December 31, 1997 are attached to this report as Appendix C. The Maritime Museum posted a net loss on the year of $40,528. This loss is primarily attributable to reductions in the City grant and in paid admissions, although, by increasing ticket prices and reducing hours of operations, the VMM was able to minimize its losses.

Expenditures were higher in exhibition and programming costs which reflect the increased level of activities. In addition to the permanent exhibitions, the St. Roch, model ships and the Children’s Maritime Discovery Centre, the 1997 program highlights included Pirates! an exploration of pirate ships, buried treasure, pirate flags, and notorious pirates.

$25,000 Supplementary Grant Request

When Council considered the traffic impacts of tour buses to Kits Point earlier in the year, the Vancouver Maritime Museum expressed serious concerns with respect to its attendance and earned income base. It submitted that the decline in attendance experiences in the summer of 1997 corresponded to the date that tour buses were requested not to stop at theVancouver Maritime Museum. Office of Cultural Affairs staff reviewed the Museum's submission to Council requesting compensation for losses incurred in 1997, quarterly visitor surveys and its financial statements for the years 1994 - 1997 and concurred that there appeared to be a 13% drop in attendance and revenues, estimated to be in the order of $25,000 as reported to Council in the City Engineer's memo of March 24, 1998. The VMM is requesting a supplementary grant of $25,000 to compensate for this loss.

St. Roch Fund Raising Strategy

When Council approved a supplementary grant for the operations of the St. Roch in 1997, it directed the Vancouver Maritime Museum to report back within six months with a plan for a private sector fund raising campaign to secure sufficient funds to assume the full responsibility for the ongoing operations of the St. Roch.

The VMM has developed a two-pronged approach to raising awareness and funds to secure the future operations of the St. Roch. Its plans, attached to this report as Appendix "B" detail two separate but related campaigns. Both campaigns seek to build on the history and place of the St. Roch in our local and national culture.

The first campaign to be launched will place the St. Roch in the context of the North through an association with another Canadian icon - the Isumataq. The Isumataq is a 152-foot painting of the north by Canadian artist, Ken Kirkby. The painting will be exhibited at Ballantyne Pier and "sold" by the inch to public and corporate donors. on completion of the campaign, it will be installed in the St. Roch shelter as the backdrop to the St. Roch

The second strategy, a partnership with the RCMP, is the re-creation of the St. Roch's voyage through the Northwest passage. The event will be a major fund raising opportunity shared by the VMM for the St. Roch and by the RCMP for their VisionQuest program. It celebrates the 125th anniversary of the RCMP and the inclusion of Nunavet into confederation. The voyage would be made by the RCMP patrol vessel, "Lindsay" with stops at each northern community, continuing down the east coast, and returning through the Panama Canal to Vancouver. A full description of the event and the fund raising and awareness opportunities are detailed in the attached VMM submission.

Both fund raising strategies are time sensitive and the VMM is anxious to move ahead to implement these plans. The Isumataq plan is scheduled to be launched this summer, and considerable planning has already been done. The St. Roch voyage is a very complex and challenging project. Planning must begin now if they are to reach Nunavet in time for their celebrations in the summer of 2000.

If Council wishes to pass the City's responsibilities for the St. Roch to the VMM, then the fund raising strategy proposed by the VMM appears to offer good opportunities. The VMMhas secured viable partners and has hired a professional development officer to assist the Board of Trustees in the development and implementation of this strategy. Staff will monitor the results of the campaign and report back to Council on an annual basis. If, at the end of two years, the campaign has not achieved a significant portion of its anticipated goal, alternative options with respect to the future operations of the St. Roch will be presented for Council's consideration including display only, alternative management and/or disposal of the St. Roch.

The goal of the two campaigns is to raise $5 million. This will secure sufficient operating and capital funds to enable the VMM to preserve and present the St. Roch as part of its ongoing operations. Some significant capital improvements to the building will also result from this initiative. The Isumataq painting is to be installed in the shelter as a backdrop to the St. Roch. At a minimum, renovation to the shelter is necessary in order to hang the painting in a safe and protected environment.

However, if the Museum is to raise $5 million dollars, more than minimal upgrading will be required. The vessel will need to be restored, the shelter repaired or replaced and the Museum's exhibit infrastructure, programming areas and support services will need to be to upgraded and expanded to provide an environment which will justify this level of public support.

The VMM has experienced significant opposition to its current level of activities by some of its neighbours as expressed by the Kits Point Residents Association (KPRA) including the level of public access, hours of operations, rental uses, and any proposed increase in activities or changes to the physical plant. Some members of KPRA have stated clearly that they will actively oppose any increase in activities or building expansion.

VMM Location Options

Staff believe that a resolution to this ongoing conflict is necessary if the VMM is to be successful with its fund raising plans. It will need to assure its donors that it has the ability to invest funds on-site with the full support of the City, the owner of the building and the vessel. Without this assurance it cannot responsibly ask for public and/or corporate donations.

Staff recommend that the City either confirm its commitment to the Vancouver Maritime Museum in its current location with the full knowledge that if it is to be successful with its fund raising plans, it will need to grow and expand at its current location in Kits Point, or, alternatively, that Council direct staff to work with the VMM to explore its site options.

Staff are recommending a review which will study a range of viable scenarios from off-site expansion to "status-quo" for Council's consideration, noting that any alternate site optionswill have considerable capital costs associated with them and as they will delay the VMM's fund raising plans, could also result in some ongoing supplementary funding costs.

Should Council wish to undertake a review, the Vancouver Maritime Museum Society have expressed a desire to participate. A draft terms of reference are attached to this report as Appendix "A".

Outstanding Issues:

Earlier in the year, when Council considered Kit Point traffic impacts and a possible Fir Street extension, staff were asked to report back with a proposal to improve the pedestrian access from the Vancouver Museum/Pacific Space Centre to the Vancouver Maritime Museum. Should council approve item F in this report, staff will report back as soon as possible, Should Council approve item E, staff will report back after the consultant's review has been received and an approach approved by Council.

St. Roch 1998 Supplementary Grant Request

Finally, staff recommend that a further supplementary grant of $82,000 be approved to provide the transitional funds necessary to operate the St. Roch in 1998. It is anticipated that fund raising pledges will be made over a three year period and the VMM will not have sufficient revenues to operate the St. Roch without City's assistance until 2001.

NOTE:Attachments to this Report that do not have electronic copy are available on File in the City Clerk's Office.

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Appendix "A"

Page 1 of 4

VANCOUVER MARITIME MUSEUM REVIEW

Expressions of Interest Guidelines

The City of Vancouver wishes to receive Expressions of Interest from qualified consultants for a review of the operations of the Vancouver Maritime Museum to inform decision-making regarding the Society's future operations and the City's cultural objectives for the Museum. The Vancouver Maritime Museum Society is an independent, non-profit society operating in a City-owned building in Vanier Park.

The purpose of the review is to identify and evaluate reasonable options for the Museum's future direction including a range of viable scenarios from off-site expansion to "status-quo" for Council's consideration. Teams are expected to have expertise in public institutional planning, programming and management with an emphasis on museum or interpretive centre experience, developing new models, market analysis, economic analysis and physical planning.

Expressions of Interest are to be in the form of a letter and supporting documents from the prime consultant. The proposal should include resumes detailing relevant experience for all members of the study team, proposed methodology including a project schedule and work program and a proposed fee schedule.

Proposals will be forwarded for review to a joint Steering Committee comprised of staff from the City's Corporate and Community Services Groups and representatives from the Vancouver Maritime Museum staff and Board of Trustees.

Expression of Interest letters should be addressed to :

The Office of the City Clerk

City of Vancouver

453 West 12th Avenue

Vancouver B.C.

V5Y 1V4

Attn.: Vancouver Maritime Museum Review

Letters are to be received by 5:00 pm. on Friday, June 12, 1998. Proposals received after the closing time will be returned unopened. Faxed proposals will not be accepted.

Attach. - Terms of Reference

Appendix "A"

Page 2 of 4

VANCOUVER MARITIME MUSEUM REVIEW

TERMS OF REFERENCE

1.0 Invitation for Proposals

On ____________ Vancouver City Council approved a resolution to commission a review of the future operations of the Vancouver Maritime Museum to inform decision-making regarding the Society's future operations and the City's cultural objectives for the Museum including options for re-location.

For these purposes, a joint Steering Committee comprised of representatives of the Vancouver Maritime Museum Board and staff, and City staff from the Corporate and Community Services Groups, is inviting proposals from consultants to carry out a comprehensive study as set out below.

2.0 Scope of Work

In general, the scope of work consists of contextual assessment of current operations, including analysis of governance, management, exhibition and public programmes, curation, and physical plant as well as economic, operational and marketing strategies. Consultants will be expected to identify and evaluate reasonable options for the Museum's future direction including a range of viable scenarios from off-site expansion to "status-quo" for Council's consideration. Options should be supported by a comprehensive capital and operational cost analysis.

The consultants will:

i)meet and consult with representatives of the Steering Committee, the Vancouver Maritime Museum, the City of Vancouver, appropriate funding officials, current and potential donors, as well as other interested organizations and the general public.

ii)undertake a review of the existing reports and studies with respect to the Vancouver Maritime Museum's operations and plans.

iii)meet regularly with the Steering Committee to report progress and seek direction.

iv)make presentations to City Council, and/or the Vancouver Maritime Museum as required.

3.0 Study Co-ordination

The study will be co-ordinated by a Steering Committee comprised of representatives of the Vancouver Maritime Museum Board and staff, and City staff from the Corporate and Community Services Group. Day-to-day co-ordination will be through the City's Office of Cultural Affairs.

4.0 Product and Timing

The product will be both written reports and presentation materials. The written reports will be submitted in an 8 x 11 vertical format. At the draft report stage, the consultant will provide 10 unbound reproducible black and white copies. For the final report the consultant will provide 15 bound copies and two sets of presentation materials.

The study is expected to commence on July 1, 1998 and be completed with final report by September 30, 1998. A draft report is to be submitted by August 31, 1998.

Appendix "A"

Page 3 of 4

5.0 Fees

The total cost of the study, disbursements and taxes included is not to exceed $30,000.

6.0 Study Team

The study team must have previous experience in:

• Public institutional planning, programming and management

•Museum, gallery or interpretive centre planning experience

•Community consultation and consensus building

• Developing new models including partnership options

• Market analysis

• Capital fundraising feasibility analysis

• Functional programming

• Site planning

• Cost estimating

7.0 Proposal Format

The proposal should include:

i)resumes detailing relevant experience for all members of the study team;

ii)study team organization identifying the prime contact;

iii)proposed methodology, including a project schedule and work program;

iv)proposed fee schedule including sub-consultants' allocation (if any) inclusive of all disbursements.

8.0 Submission of Proposals

Six (6) copies of the proposal shall be submitted by 5:00 pm, Friday, June 12, 1998 to:

City Clerk

Third Floor

Vancouver City Hall

453 West 12th Avenue

Vancouver V5Y 1V4

Attn: Vancouver Maritime Museum Review

9.0 Proposal Review Process

Proposals will be reviewed by the Steering Committee according to consistent evaluation criteria, and all short listed proponents will be invited to make a brief presentation to the Committee. The Committee will recommend its selection for Council approval.

10.0 Inquiries

For additional information, contact:

Sue Harvey, Cultural Planner

Office of Cultural Affairs

City of Vancouver

(604) 871-6001

sue_harvey@city.Vancouver.bc.ca

Appendix "A"

Page 4 of 4

Timeline

May 28 Council report seeking approval of consultant review

Expression of interest Guidelines & Terms of Reference sent to qualified consultants

June 12 Deadline for receipt of consultant submissions

June 17 Selection of consultants

June 22 Study commences

August 31 Deadline for receipt of first draft

Sept 30 Final report submission

Oct 20 Council report seeking direction on consultants recommendations

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(c) 1998 City of Vancouver