SUPPORTS ITEM NO. 4 CS&B COMMITTEE AGENDA JULY 27, 1995 ADMINISTRATIVE REPORT Date: July 18, 1995 TO: Standing Committee on City Services and Budgets FROM: Director of Cultural Affairs and Comptroller of Budgets & Research SUBJECT: Grants Equal to Theatre Rent: 1995/96 Season RECOMMENDATION A. THAT Council approve the new process outlined in this report to provide for seasonally based (Fall/Spring) Grants Equal to Theatre Rent. B. THAT Council approve revised base level uses of the Civic Theatres to 12 organizations as detailed in Table 1. C. THAT Council approve rental grants totalling $539,895 to 10 organizations for uses of the Civic Theatres in Fall 1995, as listed in Table 2; sources of funds to be $516,400 from the 1995 Cultural Grant Equal to Theatre Rent budget, and $23,495 from Contingency Reserve. D. THAT Council approve, in principle, and subject to the 1996 Operating Budget Review process, rental grants totalling $947,175 to 12 organizations for uses of the Civic Theatres in Spring 1996, as listed in Table 2. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of A, B, C and D. COUNCIL POLICY In 1979, and again in 1983, City Council affirmed the principle that Grants Equal to Theatre Rent are provided to cultural organizations that use the Civic Theatres regularly, and have been assigned annual "base level uses" of the theatres, independent of rental rate increases. Adjustments to the Grants Equal to Rent budget are normally made after the new rates are approved by Council. Approval of grant recommendations requires eight affirmative votes. PURPOSE On June 23, 1994, after hearing of the difficulties caused by the calendar year timing of Grants Equal to Rent, Council directed staff to report back in 1995 on changing the rental grants program from the current calendar year (Spring/Fall) basis, to a performing season (Fall/Spring) basis. This report recommends a process for providing seasonal rental grants, including new base level allocations, based on consul-tations with affected groups, and makes grant recommendations for the 1995/96 season. SUMMARY Base Levels In view of the recommended move to seasonally based rental grants, and of shifts in applicants' uses of the Civic Theatres since base levels were last adjusted, this report recommends changes in the annual base levels assigned to eligible applicants, and approval of one use to a new applicant, Music in the Morning. These recommendations will reallocate 19 uses and reduce the total number of eligible uses by four, as detailed in Table 1, following. TABLE 1 Recommended Adjustments to Base Levels Current Recomm. Change Guidelines VANCOUVER PLAYHOUSE: Fest. Concert Soc. 39 34 -5 morning perf. Friends of Cham. Mus. 5 7 +2 Van. Dance Centre` 7 - -7 Van. Play. Theat. 240 240 - 200 perf./40 reh. Van. Recital Soc. __5 7 +2 (note Orpheum uses) Subtotal 296 288 -8 ORPHEUM/QET: Academy of Music 4 4 - Ballet B.C. 8 10 +2 7 perf./3 reh. Coastal Jazz & Blues 1 1 - Music in the Morning - 1 +1 morning perf. "Messiah" - 2 +2 (1995: Bach Choir) Van. Bach Choir 10 11 +1 5 perf./6 reh. Van. Chamber Choir 7 7 - 4 perf./3 reh. Van. Opera` 41 49 +8 28 perf./21 reh. Van. Recital Society 2 3 +1 (note Van. Pl. uses) Van. Symphony 119 108 -11 95 perf./13 reh. Subtotal 192 196 +4 TOTAL USES 488 484 -4 It should be noted that the base level represents the maximum number of uses assigned to each organization. The actual allocation is often below the base level, due to the programming schedule of the organizations. Grant Recommendations As detailed in Appendices A and B, 12 applicants have requested rental grants totalling $1,528,950. The Director of Cultural Affairs recommends grants totalling $1,487,070 to these 12 organizations, calculated at the new rental rates considered by Council last week, and representing 467 out of a total 484 eligible uses, as summarized in Table 2, following. TABLE 2 1995/96 Grants Equal to Rent Recommendations New Fall Spring Base 1995 1996 $ Total Uses Level Academy of Music 6,800 18,700 25,500 ( 4) ( 4) Ballet B.C. 23,800 34,000 57,800 ( 10) ( 10) Coastal Jazz - 6,800 6,800 ( 1) ( 1) Festival Concert 13,090 18,700 31,790 ( 34) ( 34) Frds. of Cham. Music 3,750 9,375 13,125 ( 7) ( 7) Music in the Morning - 1,875 1,875 ( 1) ( 1) Van. Bach. Choir* 34,000 19,700 53,700 (10+2) ( 11) Van. Chamber Choir 18,350 17,000 35,350 ( 7) ( 7) Van. Opera 85,000 164,225 249,225 ( 49) ( 49) Van. Playhouse 126,655 257,125 383,780 (232) (240) Van. Recital Society 17,350 19,225 36,575 ( 9) ( 10) Van. Symphony 211,100 380,450 591,550 (101) (108) TOTAL $539,895 $947,175 $1,487,070 (467) (484) *Includes two performances of the "Messiah" The recommendations in Table 2 include new base level uses to the following organizations: Ballet B.C. $10,200 (2 uses) Friends of Chamber Music $ 3,750 (2 uses) Music in the Morning $ 1,875 (1 use) Vancouver Bach Choir $ 2,700 (2 uses) Vancouver Opera $51,000 (8 uses) Vancouver Recital Society $13,600 (2 uses) Total $83,125 (17 uses) FINANCIAL IMPLICATIONS Because of the proposed adjustment in the timing of rental grants, the financial discussion in this report includes all of 1995, as well as Spring 1996. For calendar year 1995, Council approved a Grants Equal to Rent budget of $1,409,645. For Spring 1995, Council approved rental grants totalling $893,245 (including $20,020 over base levels), leaving a balance of $516,400. Grants recommended in this report for Fall 1995 will require an increase of $4,375 in the total 1995 Grants Equal to Rent budget prior to an adjustment for Civic Theatre rate increases. Assuming the rental rates proposed by the Director of Civic Theatres have been approved, additional increases in the budget will be required, as summarized in Table 3, following: TABLE 3 Budget Summary Grants Grants Currently Recomm. Recomm. Approved Before After Rate Budget Rate Incr. Rate Incr. Incr. Fall 1995 $516,400 $ 520,775 $ 539,895 $19,120 Spring 1996 0 $ 915,850 $ 947,175 $31,325 Total $516,400 $1,436,625 $1,487,070 $50,445 Council should note that although the total base level of uses has been reduced by four, this reduction will not translate into a corresponding decrease in the funds required for the grant budget. In fact, the recommended funding level of $1,487,070 for the 1995/96 season (September 1995 to August 1996), is a $77,525 or 5.6% increase over the 1995 financial year grant ceiling of $1,409,645. Of the $77,525 increase, $51,045 or 3.6% is due to the recommended increase in the rental rates, which will be reflected in an increase to the Civic Theatre revenue, and the remaining $26,480 is due to the one- time restructuring of the base level of uses. The actual impact to the 1996 Operating Budget is not known at this time, as it will be influenced by rental grant applicants' program schedules in the 1996 Fall Season, as well as the rental rate increases for the 1996/97 theatre season as applicable to the 1996 Fall Season. BACKGROUND The calendar year timing of Grants Equal to Rent has created a number of difficulties for both grant recipients and the City. As Council noted with the VSO last year, one problem has been that applicants' seasonal uses have not always corresponded to their base levels. Moreover, approval of applicants' grants for the Spring season has been retroactive. The change to Fall/Spring grants,as described in this report, will give applicants a more accurate base level and an indication of the City's level of support prior to their performing season. Another difficulty has been caused by the fact that rental rate increases, approved mid-year, have often been greater than any increase approved for the Grants Equal to Rent budget earlier in the year. In past years, staff tried to ensure that rental grants approved for a given financial year, in terms of total dollars, were within the budget ceiling. However, there were occasions when additional funds were recommended and approved from Contingency Reserve to provide funding to close the gap. The shift to seasonal Grants Equal to Rent should address this problem. DISCUSSION Process The proposed new process for reviewing and approving Grants Equal to Rent will involve one main report in July to make recommendations on the coming Fall/Spring season, and a second report early in the following year. The second report is intended to establish the budget allocation for the then-current year, and will be part of the report dealing with grant ceilings in the Cultural Grant category. For the 1996 financial year, it is anticipated that the report would recommend a funding ceiling of $1,487,070 for 1996, with any further changes to be made when the 1996/97 rental rates are adjusted. Base Levels This report recommends adjustments in current base level uses (Table 1) to ensure that the levels assigned to applicants are compatible with their performing seasons and reflect their recent pattern of Civic Theatre uses, within their recognized mandates. A periodic review of base levels will be conducted in the future. Council will note that the base level recommendations for a number of groups are more clearly defined than they were in the past. Because the costs of different types of uses vary significantly (rehearsals versus performances, for example), clearer guidelines regarding type of use are needed to bring assigned base levels more closely in line with the budget ceiling. Since a review of applicants' past few seasons indicates that a rigid definition of types of uses is impossible in many cases, staff are recommending guidelines that distinguish between uses that vary significantly in cost. Where no cost increases are involved, however, this report recommends some flexibility in applying base levels (for example, by applying a performance use to cover a less expensive rehearsal use, but not vice versa). Noting the Vancouver Arts Initiative's recommendation that the Grants Equal to Rent program be expanded to include additional applicants, staff also reviewed the activities of several non-profit arts organizations that have been frequent users of the Civic Theatres in the past five or more years. A major consideration was whether a group was still able to take advantage of the Vancouver Foundation's Baxter Grant program, which is available, on a limited basis, to occasional users of the theatres. This report recommends that Council approve rental grant support to two of these groups: (1) Music in the Morning, which presents annual events in the Civic Theatres and is no longer eligible for Baxter grants, and (2) the Vancouver Cantata Singers for their presentation of the "Messiah" every three years, as detailed later in this report. Requests and Recommendations A detailed discussion of applicants' base levels and grant requests for 1995/96, together with the Director of Cultural Affairs' recommendations for rental grants for the first part of the year, is provided in Appendix B. CONCLUSION The proposal to change the rental grants program from a calendar-year to a seasonal basis has been welcomed by rental grant recipients. The new timing will give them an indication of support prior to their seasons, and limit any discrepancies between seasonal uses and base levels. Provided the main Grants Equal to Rent report can be scheduled after Civic Theatre rates are adjusted for the season, rental grants will no longer have to be adjusted half way through the year, thereby simplifying the process for all concerned. * * * * * APPENDIX B DISCUSSION OF GRANT RECOMMENDATIONS Academy of Music The Academy rents the Orpheum four times a year to present its student orchestral concerts; its current base level covers these uses. The Academy has asked for a grant of $25,500 towards one use in Fall 1995 and three uses in Spring 1996, which are recommended. Ballet B.C. At present, Ballet B.C. has a base level of eight uses of the Queen Elizabeth Theatre: six performances and two rehearsals. It has applied for a base level of 14 uses: ten for the company's own productions and four for some of its presentations of other companies in the Dance Alive! series. In Spring 1995 the company benefitted from a grant of $42,250 to cover its presentation of "The Nutcracker" with the VSO, which accompanied the performance. The grant was within the VSO's base levels, and support for it was largely based on the fact that it assisted both Ballet B.C. and the VSO. In the context of the current demand on the Grants Equal to Rent budget, the Director of Cultural Affairs is not recommending the allocation of base level uses for Dance Alive! presentations as a priority. He notes that, if the budget allows in the future, it may be desirable to allocate base level uses for events that involve partnerships between rental grant recipients, such as that between the Ballet and VSO earlier this year. The Director does recommend an increase Ballet B.C.'s base levels to ten uses: seven performances and three set-ups/ rehearsals, and a grant of $57,800 to cover these uses for 1995/96. Coastal Jazz and Blues Society The Society, which organizes Vancouver's Jazz Festival, has a base level of one for its annual opening night concert at the Orpheum or Queen Elizabeth Theatre. No change in the base level is required. A grant of $6,800 to cover its 1996 concert in June is recommended. Festival Concert Society The Society presents diverse, inexpensive Sunday morning concerts, convenient for families and seniors, at the Vancouver Playhouse Theatre. Since it is reducing its season, a corresponding reduction in its base levels, from 39 to 34 morning concerts, is recommended. A grant of $31,790, to cover the Society's rental uses in Fall 1995 and Spring 1996 is also recommended. Friends of Chamber Music Friends of Chamber Music presents a series of ten evening concerts at the Playhouse, and has a base level of five. This base level was a result of historical circumstances and financial need at the time the level was set. The Society has now asked for an increase in its base level to seven uses. Having reviewed the Society's current activities and financial needs, the Director of Cultural Affairs is recommending an increase in its base level to seven. Within that level, he recommends a grant of $13,125 for the 1995/96 season. The "Messiah" For a long time, three of Vancouver's senior choirs have had an agreement under which each presents two performances of "Messiah" at the Orpheum every three years during the Christmas season. Two of the groups, the Vancouver Bach Choir and Vancouver Chamber Choir, have been funded through the rental grants program for many years, and receive additional assistance when they do "Messiah", usually over their base levels. The third, the Vancouver Cantata Singers, does not use the Civic Theatres on an annual basis, and therefore has not received a rental grant for its "Messiah" performances. To address this situation, the Director of Cultural Affairs proposes that a "rotating" base level of two uses be assigned to whichever choir is presenting the "Messiah" at the Orpheum in a given year, in accordance with the arrangement among Vancouver's choirs. For the coming season, the Director recommends that the $13,600 grant for the "Messiah" be approved in the allocation to the Bach Choir. Music in the Morning The Society primarily presents morning concerts at the Vancouver Academy of Music and several other venues. In recent years it has also organized concerts in the Civic Theatres, which were funded five times by the Baxter Fund. The Society is now no longer eligible for Baxter grants, but wishes to continue to present at least one concert a year in the Civic Theatres. The Director of Cultural Affairs recommends that Council assign a base level of one morning use of the Orpheum or evening use of the Vancouver Playhouse to the Society, and approve a grant of $1,875 for a concert at the Playhouse on June 30, 1996. Vancouver Bach Choir The Bach Choir has applied for a base level of five performances and six rehearsals at the Orpheum Theatres, one more than its present level of ten uses. The size of the choir and orchestra with over 250 people on stage, make it difficult for the group to rehearse elsewhere. The Director of Cultural Affairs recommends approval of this new level. For 1995/96 he recommends a grant of $53,700 representing 12 uses, one over the base level, but including two performances of the "Messiah". As indicated in the Summary, and explained earlier in this report, the Director is proposing that up to two base level uses for "Messiah" be set aside for whichever of the senior choirs is performing it in a given year. Vancouver Chamber Choir The Chamber Choir's home season includes performances in the Orpheum and in smaller venues throughout the city. It has a base level of seven uses (four performances and three set-ups/ rehearsals), which reflects its current pattern of uses. For 1995/96 the choir has applied for a grant of $36,430, which includes an extra rehearsal use. The Director of Cultural Affairs' recommended grant of $35,360 does not include this additional use. Vancouver Dance Centre The City began to provide the Vancouver Dance Centre with rental grants in 1990, after the Centre had developed a dance series in the Vancouver Playhouse with assistance from the Baxter Fund. At that time Council assigned the Dance Centre a base level of seven uses. Since the Centre discontinued this activity three years ago, this report recommends cancelation of its base level uses. Vancouver Opera In recent years the VOA has expanded its activities in the Civic Theatres well beyond its current base level of 41 uses. Recognizing this fact, Council, on a one-time basis, approved three uses over base level totalling $19,500 for Spring 1995. The VOA is requesting a new base level of 53 uses: 25 set-ups/ rehearsals and 28 performances in the Queen Elizabeth Theatre or Orpheum. However, to cover its 1995/96 season it would need a grant of $269,625 for 50 uses of the QET/Orpheum and 18 uses of the Vancouver Playhouse, where it will be presenting one of its operas next year. The Director of Cultural Affairs recommends a base level of 49 uses of the QET/Orpheum: 21 set-ups/rehearsals and 28 performances. For the 1995/96 season he recommends a grant of $249,225, the equivalent of 49 uses of the QET, to be applied to 23 performances at the QET, 18 performances at the Playhouse (costing just under 5 uses of the QET) and 21 set-ups/ rehearsals. Staff are proposing flexibility in applying uses for the VOA in view of the organization's current development phase. Vancouver Playhouse Theatre Company The Company is the main user of the Playhouse Theatre and produces a season of six plays. Its base level of 240 uses is appropriate for its current level of use, allowing for 200 performances and 40 set- ups/rehearsals. For 1995/96 the Director of Cultural Affairs recommends approval of the Company's grant request of $383,780, representing 195 performances and 37 set-ups/rehearsals. Vancouver Recital Society The Society has a base level of five uses of the Playhouse, where it has a highly regarded concert series, and two uses of the Orpheum, where it presents individual concerts, for a total of seven base level uses. Like the Opera, the Recital Society has expanded its activities since its base levels were established. The Society has requested, and the Director of Cultural Affairs recommends, a new base level of ten: seven Playhouse and three Orpheum uses. The Director also recommends that Council approve on a one-time basis, the Society's request for five uses of the Playhouse and four uses of the Orpheum totalling $36,575; this is within the Society's total number of new base levels. Vancouver Symphony Orchestra The Symphony, whose base level has been 119 uses of the Orpheum, has asked for a new level of 108 uses comprising 95 performances and 13 rehearsals or auditions. The Director of Cultural Affairs recommends a base level of 108 uses, subject to the annual budget level approved by Council, and on the understanding that this level can accommodate uses in which the Symphony accompanies other rental grant applicants, such as Ballet B.C. This does not include sold services. For 1995/96 the VSO has requested, and the Director recommends, a grant of $591,550 to cover 89 performances and 12 rehearsals and auditions at the Orpheum. The VSO has also requested an additional grant of $4,875 to cover a school concert that was omitted from its Spring 1995 request. The Director of Cultural Affairs does not recommend retroactive consideration of rental grants for a period that has already been dealt with by Council, and is, therefore, not recommending that Council approve a grant for the VSO school concert in Spring 1995. * * * * *