ADMINISTRATIVE REPORT

Date: June 10, 1999

Author/Local: Sue Harvey/6001

RTS No. 0781
CC File No. 2201/4002

Council: June 22, 1999

TO:	Vancouver City Council
FROM:	Director, Office of Cultural Affairs, in consultation with the Managers of Building Management and Risk Management and the Comptroller of Budgets & Research
SUBJECT:	Vancouver Maritime Museum - Extraordinary Funding Request

RECOMMENDATION

THAT Council approve a one-time extraordinary grant of $24,000 to the Vancouver Maritime Museum Society to offset lost revenues arising from a fire; source of funds to be Contingency Reserve.

GENERAL MANAGERS' COMMENTS

The General Managers of Community and Corporate Services submit the foregoing for CONSIDERATION.

COUNCIL POLICY

The Vancouver Maritime Museum occupies a City-owned building in Vanier Park and houses the City's collection of maritime art and artifacts. 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.

Approval of a grant requires eight affirmative votes.

PURPOSE

This report presents for Council's consideration a request from the Vancouver Maritime Museum (VMM) for $24,000 in compensation to offset revenue losses arising as a result of a fire on May 2nd in the City-owned building.

BACKGROUND

The Vancouver Maritime Museum (VMM) has operated in its current location in a City-owned building in Kits Point since 1958. 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.

On May 2nd, there was an electrical fire in the model shop of the Maritime Museum. The fire occurred during business hours and staff were able to clear the building and contain the fire. No one was hurt and the collection was not permanently damaged. There was, however, significant smoke damage. Building Management and Risk Management staff assessed the damage and contracted a restoration specialist to clean the building and collection.

The whole Maritime Museum was closed to the public for 3 days. The St. Roch exhibit, unaffected by the fire, was re-opened on May 5th, at a half-price admission. The balance of the museum has remained closed to allow for cleaning, sealing, ceiling removal, and electrical repairs. The restoration contractor has confirmed that their work will be complete in the balance of the Museum on June 16th. It will take the Museum a further week to re-install their exhibits.

The City carries property insurance coverage on the VMM facility and this insurance covers the cleanup and restoration costs. However, there is no insurance coverage for lost revenues of the VMM.

DISCUSSION

The Maritime Museum have requested a one-time only grant from the City to cover their net losses arising from the closure of the facilities due to the fire.

Office of Cultural Affairs staff have reviewed their request. Based on an analysis of their actual attendance figures for May 1999 for the St. Roch exhibit only at half-price admission, in comparison to their 1998 and 1997 actuals, staff have determined that the VMM has realised a net loss of $3,725 per week. This includes lost ticket revenues as well as a losses from ancillary revenue sources. An examination of past revenues indicates that for every $1 dollar in ticket revenue, the VMM also realises an additional 50¢ in ancillary revenues: gift shop purchases, donations etc. This weekly net loss extrapolated over the estimated 6½ week closure results in a total net loss of $24,213. Staff have reviewed the Society's financial statements and confirm that they do not have the capacity to absorb a $24,000 loss.

CONCLUSION

Staff present for Council's consideration the Vancouver Maritime Museum's request for a one-time grant in the amount of $24,000.

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(c) 1998 City of Vancouver