SUPPORTS ITEM NO. 2
CS&B COMMITTEE AGENDA
JUNE 1, 1995
ADMINISTRATIVE REPORT
Date: May 19, 1995
TO: Standing Committee on City Services and Budgets
FROM: Director of Finance
SUBJECT: 1995 Operating Grant Request -
Vancouver Art Gallery Association
RECOMMENDATION
A. THAT a 1995 operating grant of $1,828,800 be approved to
the Vancouver Art Gallery Association; sources of funds
to be $1,805,800 from 1995 'Other' Grants budget and
$23,000 from Contingency Reserve.
CONSIDERATION
B. THAT a one-time grant of $10,000 be approved to the
Vancouver Art Gallery Association for the installation
of rubber tile flooring in the Annex hallway; source of
funds to be Contingency Reserve.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS
approval of A and submits B for CONSIDERATION.
COUNCIL POLICY
City Council, on March 31, 1992, approved a change in the basis
of the City's financial support to the Vancouver Art Gallery
Association, from a grant to support specific items to a grant
supporting general operations. Funding for new and non-recurring
items continues to be considered outside of the base grant.
City Council, on April 19, 1994, when dealing with the 1994
Budget Management Program proposals, approved a 5% reduction to
the 1993 funding base of the Operating Grants to the Museum
Associations and the Vancouver Art Gallery Association.
Approval of grants requires eight affirmative votes.BACKGROUND
The Operating Grant to the Vancouver Art Gallery Association is
adjusted annually by a blended inflation factor determined by the
Director of Finance. The 1995 adjustment factor is calculated
using the ratio of the VMREU salary and benefit costs to other
costs in the Vancouver Art Gallery's operation, and weighted by
the average of the 1995 VMREU negotiated settlement and the
City's general inflation factor for 1995.
DISCUSSION
The 1995 collective agreement between the Vancouver Art Gallery
Association and the VMREU has been settled with a 1% increase in
wage cost in 1995, and the City's inflation factor used in the
1995 Operating Budget is 2%. Therefore, the composite inflation
rate used in calculating the 1995 Operating Grant for the
Vancouver Art Gallery Association is 1.5%, reflecting a 50/50
split between the wage cost and other support costs in the
Association's operation.
The 1995 Operating Grant to the Vancouver Art Gallery Association
is calculated as:
1994 base grant $1,805,760
Less: saving in maintenance cost with the instal-
lation of carpet on the second floor gallery
(installation of carpet approved in '94) 4,000
1995 base grant $1,801,760
Add: 1.5% composite inflation factor 27,040
$1,828,800
As noted in the Policy section, the 1994 Operating Grant of the
Vancouver Art Gallery Association was reduced by 5% or $93,700,
as part of the 1994-1996 Budget Management Program approvals,
before a 3% inflationary increase was allowed. In the 1995
Operating Grant request, the Association has asked the City to
reconsider that decision and provide them with the additional
funds to cover the reduction. The Director of Finance does not
support the request as the Budget Management Program adjustment
was not considered to be a one-time reduction. Furthermore, this
action would require offsets elsewhere in the operating budget,
or need to be funded from Contingency Reserve.
Accordingly, the Director of Finance recommends that a 1995
Operating Grant of $1,828,800 be approved to the Vancouver Art
Gallery Association, with the source of funds to be 1995 'Other'
Grants budget.
NEW AND NON-RECURRING ITEM
Installation of Rubber Flooring -
Hallway of the Annex - $10,000
The carpet in the hallway leading from the Hornby Street entrance
to the reception area in the Annex has deteriorated badly and is
a potential safety hazard to visitors. The Vancouver Art Gallery
Association has put forward a proposal to replace the carpet with
a hard rubber flooring at a cost of $10,000. Staff from the
Facility Development Division have reviewed the proposal and
inspected the site, and concurred that the work should be done
and that the cost estimate is reasonable.
The Director of Finance submits this one-time grant request of
$10,000 for consideration. If approved, the source of funds is
Contingency Reserve.
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