SUPPORTS ITEM NO. 3
CS&B COMMITTEE AGENDA
FEBRUARY 22, 1996
ADMINISTRATIVE REPORT
Date: February 4, 1996
Dept. File: SP 02.22
TO: Standing Committee on City Services & Budgets
FROM: General Manager of Community Services
General Manager of Corporate Services
in consultation with Corporation Counsel
SUBJECT: Vancouver Museum Operation Review - Staff Report
RECOMMENDATIONS
A. THAT Council approve Option 5: "Regenerate on the Existing
Site" as outlined in the consultants' report, "Vancouver
Museum Operations Review"* (on file in the office of the City
Clerk) and in the Executive Summary of the report attached as
Appendix A, as the developmental option for the future of the
Museum and direct staff to commence the process to implement
the option as outlined in this report.
B. THAT Council direct staff to exercise the City's option to
terminate the operating agreement between the City of
Vancouver and the Vancouver Museum Association as provided in
the agreement dated January 1, 1988.
C. THAT Council direct staff to implement the transition plan
outlined in this report and authorize a budget of up to
$75,000 for associated costs including the extension of the
contract with Sears & Russell Consultants Limited as outlined
in this report, subject to approval by the City Manager;
Source of funds to be the 1996 Operating Budget.
D. THAT the City direct staff to report back on the creation of
a new society, the Vancouver Museum Society (VMS) and that
Council appoint members to the Board of the VMS, and invite
the Vancouver School Board and Province of British Columbia
also to make appointments to the new Board.
E. THAT Council direct staff to approach the Province of British
Columbia and the Royal British Columbia Museum (RBCM) to
explore the possibility of a relationship with the RBCM in
the operation of the Museum.
*LIMITED DISTRIBUTION TO COUNCILF.THAT Council direct staff to prepare
and report back with an operating agreement between the City and the
new society, or between the City and the new society in association
with the RBCM, setting out terms and conditions with respect to
cultural objectives and financial performance as outlined in this
report.
G. THAT Council approve in principle a supplementary grant to
the new society of up to $200,000 per year for a period of
three years, subject to a staff report back with a detailed
operating plan and budget request from the new society.
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H. THAT Council direct staff to include the facility
infrastructure and exhibit capital requirements outlined in
this report as "Option 5" for consideration in the 1997-1999
Capital Plan.
I. THAT Council direct staff to report back on the status of the
Vancouver Museum Foundation.
J. THAT Council direct staff to review and report back on the
City's relationship with all the major exhibiting cultural
institutions.
CITY MANAGERS' COMMENTS
City staff have received and assessed the Vancouver Museum
Operations Review* report, and found it both comprehensive and
credible. Many of the findings are unfavourable, but the options
presented are reasonable and the recommendations are persuasive.
Staff conclude that the City should take action and believe there
are clear alternatives before Council.
The recommended option, to attempt to revitalize the institution,
comes with no guarantee of success, only the best odds available.
Should Council wish to pursue this option, staff believe that
clear direction from Council and swift action are critical to
restoring community confidence, investment and involvement in the
institution.
Should Council not wish to proceed with the recommended option,
rather than initiate a half-measure, staff would recommend that
the institution be "mothballed".
The City Manager RECOMMENDS approval of A through J.
COUNCIL POLICY
There is no applicable policy.
*LIMITED DISTRIBUTION TO COUNCILPURPOSE
The purpose of this report is to provide Council with an overview of
the consultants' report resulting from the Vancouver Museum Operations
Review*, and, to provide City staff recommendations, including a
proposal for implementation, for the future direction of the City's
relationship with the Vancouver Museum.
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 Association, an independent, non-
profit society, for the purposes of collection, research, and public
presentation and interpretation.
Over the years, the Museum has been housed in several locations,
finding a permanent home in 1968 in Vanier Park. At different times,
the Museum has been run as civic department, collectively with the
Planetarium and the Maritime Museum, and as an independent
organization. In 1987 the Vancouver Museum Association was established
with an independent Board of Directors.
The relationship between the City and the Association is detailed in an
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operating lease. In addition to the collection, the City provides the
building, building support and maintenance, as well as operating funds
to support the VMA's activities. In 1995 the Vancouver Museum
Association's civic operating grant was $637,000.
Since its independence, the Museum has undergone frequent management
turnover, and extensive organizational, curatorial, and financial
change. Attendance and revenues have been declining for over 10 years.
In 1994, in an attempt to address these problems, the VMA Board of
Directors adopted a "Business Plan" which had the expressed intent to
balance fiscal and operational objectives.
After two years, the results included the elimination or reduction of a
number of public programmes and exhibitions, as well as a number of
staff who delivered programming and earned income. The staff layoffs
resulted in a six month strike which closed the museum to the public.
The "Business Plan" failed to stem the decline in earned revenues, and
the institution continued to rely on maintaining high levels of
government support, in particular from the City, while reducing the
level of public service. Since reopening after the strike, attendance
has continued to decline. Where the Museum once attracted 175,000
people per year, in the first 10 months of 1995 it attracted just over
25,000.
In order to be fully informed to consider funding requests, and to
evaluate the City's ongoing investment in the institution, including
future lease commitments, Council directed staff to initiate a
comprehensive review of the Museum's operations.
*LIMITED DISTRIBUTION TO COUNCILReview Process
The purpose of the review was to assess the current operations, provide
an assessment of the institution's strengths and weaknesses, and to
identify and evaluate reasonable options for the Museum's curatorial
direction, the City's cultural objectives and, management of the
institution.
At Council's direction, a Steering Committee was struck to oversee the
selection of consultants and program of review. The Vancouver Museum
Association Board of Trustees and the Vancouver Municipal & Regional
Employees Union (now CUPE 15) were invited to appoint representatives
to the committee. Mr. Craig Aspinall representing the Trustees, and Mr.
Sandy Blair, representing the VMREU, joined with staff from the Office
of Cultural Affairs, Community Services Group as well as the Office of
Budgets and Research, Corporate Services Group, to form the Steering
Committee.
A call for consultants' proposals was conducted through advertisements
in local and national newspapers, and through the B.C. and Canadian
Museum Associations. Following an extensive selection process, the
Steering Committee recommended for Council's approval, the appointment
of Sears & Russell Consultants Limited, in association with The
Economic Planning Group.
Sears & Russell have an extensive background in museum planning and
operations having completed similar studies for many municipal and
provincial museums. The Economic Planning Group (EPG) are financial
management consultants. The review was carried out by a Study Team,
under the direction of Sears & Russell, and included consultants with
specialized expertise in areas of museum planning, conservation and
collection management, fund-raising, public policy, tourism, marketing
and economic and management consulting.
The Study Team, in consultation with the Steering Committee, initiated
an extensive program of consultation including past and present members
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of the museum board, volunteers and staff; City Councillors and staff;
representatives from affiliated societies; arts councils and funding
agencies; regional and provincial museums; the Vancouver School Board;
regional tourist attractions and agencies.
Consultation included one-on-one interviews and written submissions,
group meetings, as well as a call for public input through
advertisements in local newspapers. Both the Steering Committee and
Study Team were overwhelmed by the level of interest and participation
in this review by a wide range of stakeholders.
Following this consultation and review, the Study Team drafted a final
report, "The Vancouver Museum Operations Review"*. The full report is
on file at the Office of the City Clerk. The Executive Summary of the
report is attached as Appendix A.
DISCUSSION
The review is organized in three sections: "Part 1 Analysis of
Findings" assesses the Museum's current operations. "Part 2 Proposals
for the Future" identifies a range of options for future directions for
the museum together with a set of four possible operational models for
Council's consideration. "Part 3 Recommended Future Directions"
provides more detailed analysis and the consultants recommendations for
the future of the Museum, along with strategies for implementing
change.
"Part 1 Analysis of Findings":
Need for Change
Staff recommend reading the original consultants' report, on file at
City Clerk, as the following is necessarily a too brief summary.
While the analysis of current operations identifies the Museum and the
collection as important and valued resources in the community, it also
outlines a long record of substantive and significant problems with its
operation. This includes issues of governance and management;
finances; deterioration of programming, and the consequent erosion in
attendance, and very low community profile. It also documents the
inability of the current operator, the Vancouver Museum Association, to
effectively address these issues over time.
The severity and complexity of the operational problems are such that
neither the Study Team nor staff can recommend to Council a simple or
easy solution. However, it is the strong recommendation of the
consultants that immediate action be taken, as outlined below, to
provide the opportunity for renewed public interest in the City's
collection and the institution.
"Part 2 Proposals for the Future":
Options for Change
The Study Team examined the full spectrum of development options
ranging from closing the Museum through to injecting significant
capital and increased operating funds into a new facility in a new
location. In brief, the six viable options presented included:
Option 1 "Terminate"
In this option, the City would terminate the operating lease
agreement with the VMA, close the building and dispose of the
collection.
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*LIMITED DISTRIBUTION TO COUNCILOption 2"Mothball"
In this option, the City would terminate the operating lease
agreement with the VMA and close the building, but retain some
staff directly to document and care for the collection. This
leaves open the possibility to either dispose of the collection or
re-open the Museum to the public at some future date.
Option 3 "Status Quo"
The Museum would continue as it currently operates retaining the
same Board, management and staff structure with a new, but similar
operating lease agreement with the City at the same rate of annual
operating funding.
Option 4 "Re-Organize"
In this option the Museum is reorganized and refocussed within the
current level of Civic financial support. However, the City would
become more actively involved through the appointment of the
majority of the Board by the City, and through an annual review of
the Museum's grant application to ensure compliance with the
City's cultural objectives.
Option 5 "Regenerate on Site"
As a basis for change, this option builds on Option 4 including
the institutional restructuring. In addition, this option calls
for a one-time infusion of capital funds to update the building
and exhibit infrastructure, as well as increased operating funds
for a period of three years until such time as the Museum can
regain and target realistic earned revenues opportunities.
Option 6 "Relocate and Rebuild"
In this option, as in Option 4 and 5, the Museum would be
organizationally restructured, and relocated into a more central
location. This would require a major capital commitment of a
site, building and exhibit infrastructure funding from the City as
well as an ongoing increase in operating funds.
In addition to these six options, the Study Team presented four
potential operational models which could apply to Options 4, 5 or 6.
They examined the relationship of the City to its collection, and to
the operating society, and include:
Model 1 Operation by the City of Vancouver
This model returns the responsibility for day-to-day operations to
the City. The City has a more direct role in protecting its
assets, and assumes total financial responsibility for the
Museum's support.
Model 2 Operation by Another Institution
This model would turn the responsibility for the Museum over to
another cultural institution, such as the Royal British Columbia
Museum, or the Museum of Anthropology. The City would continue in
its' current role as a funder, but without obligations for day-to-
day operations.
Model 3 Operation by a New Museum Society
This model is similar to the current model, in that a separate,
non-profit society operates the Museum on behalf of the City. The
Study Team, however, recommend that a new Museum society be
formed, that the City appoint the majority of the Board, and that
the City become more involved in the review of the Museum's
cultural and financial operations through an annual grant review
process.
Model 4 Operation by a New Museum Society in Association with
Another Institution
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In this model, it is proposed that the operations of the Museum be
undertaken by a restructured society in association with a
cultural institution, such as the Royal British Columbia Museum,
or the Museum of Anthropology. This option marries the proven
management skill and expertise of a successful institution with
the governance and cultural direction of a local society.
"Part 3 Recommended Future Directions"
Recommended Option
The Study Team reviewed the cultural, operational and financial
implications of each option and model, and recommend that the City
implement Option 5/Model 4:
Regenerate on Site/Operation by a New Museum Society in
Association with Another Institution
In the Study Team's view, Option 5 is the minimum level of change that
is necessary to transform the Museum from its current state to one
which reflects the vibrancy of Vancouver; and Model 4 provides the best
operational mechanism to deliver this change.
The Study Team was unable to recommend any option which would provide
for the retention of the current society, the Vancouver Museum
Association. It is therefore recommended that Council terminate the
operating lease agreement with the Vancouver Museum Association
effective immediately and direct staff to develop and report back on
the creation of a new society, as outlined above.
The Study Team did not recommend Option 3 or 4. It is their belief
that without significant restructuring and investment of funds, the
institution will continue a downward trend which would likely result in
its closure. If Council wishes to reduce or limit it's grant to
current levels, it is the recommendation of the Study Team, endorsed by
the Steering Committee and staff, that as an alternative to Option 5,
Council direct staff to report back on the steps necessary to implement
Option 2: "Mothball".
Association Model
The Study Team identified the association model, (Model 4) as the most
advantageous operational model. Potential partners were examined and it
was concluded that an association with the Royal British Columbia
Museum (RBCM) would be most mutually beneficial.
To ensure that local interests remain primary within the institution,
the Study Team have recommended that the City encourage a relationship
between a new Vancouver-based society providing overall governance and
direction, and the RBCM to manage and operate the Museum based on the
City's collection.
The RBCM has a proven track record, and the necessary expertise in
exhibition development, collections management, community relations,
marketing, and management to make the recommended changes in a timely
manner. Most importantly, the collections and curatorial direction of
the two institutions are compatible.
There are a number of possible structures and divisions of
responsibility between a new Vancouver-based organization and an
operating entity such as the RBCM. These range from a very focussed,
short-term contract to supply specific expertise or services, to a
multi-year association sharing responsibility for all aspect of the
Museum's governance and operations. It is anticipated that this would
be a time-limited relationship and that the Vancouver society would
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develop the local resources to operate independently of the RBCM.
However, the potential for an on-going relationship could be revisited
in year 2 of the agreement.
Senior City staff have had exploratory discussions with the Director of
the Royal British Columbia Museum, as well as with officials in the
Ministry of Small Business, Tourism and Culture and have received
sufficiently positive response to seek Council's direction to explore a
potential relationship more formally and report back to Council with a
framework for an agreement.
Operational Change
Within the framework of the governance and operation model recommended
by the Study Team for Council's consideration, the report also makes a
series of recommendations to the future Museum society to more clearly
focus the Museum's vision, image and public service, including:
Niche:
It is recommended that the Museum focus its efforts on
communicating the story of Vancouver and its setting. This niche
embraces a full and varied history of the City from the evolution
of the natural environment, its extensive settlement by the First
Nations through to contemporary settlement and issues on urban
growth. This niche provides a forum for exhibitions and public
programming which is focussed and relevant to Vancouver residents
and visitors.
Collection:
It is recommended that the collection be retained in its entirety,
in the short term, until it has been thoroughly documented to meet
contemporary museum standards, to determine the significance of
the collection, its appropriateness to the Museum's newly defined
and more focussed niche, and to provide the information necessary
for curatorial efficiency and to monitor the security of the
artifacts.
Once the documentation process is complete, and the thematic
thrust of the Museum has been clearly defined, a thorough review
of the collection should be undertaken to assess what actions, if
any, need to be undertaken with respect to accessioning and
deaccessioning.
Service to the Public:
It is recommended that the Museum direct the delivery of all its
services to meet the needs and interest of the Museum visitor,
both City resident and tourist.
It is specifically recommended that the Museum direct its efforts
to provide educational and other public programs, and to provide a
full range of attractive, long-term and short-term exhibits which
further its mandate and niche.
Image and Programming:
It is recommended that the Museum ensure that all of its
presentations to, and communication with the public be undertaken
in a manner which reinforces the image of the Museum as a vital
and relevant part of the community.
Public Participation:
It is recommended that a public consultation program be initiated
as soon as possible to explore how the Museum could better serve
and relate to the various communities that comprise the City of
Vancouver.
It is recommended that a "Friends of the Museum" organization be
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established to advise the Museum on the views and interest of the
Community.
It is recommended that a "First Nations Advisory Committee" be
established to ensure participation of Native Peoples in the work
of the Museum.
Staffing:
The Study Team also makes important operational recommendations
with respect to the current and proposed staff of the Museum,
however, the VMA, as the employer, has the full legal
responsibility for its staff. The Study Team's recommendations
call for terminating the City's operating lease agreement with the
VMA, and the assumption is that the VMS will lay-off its employees
and contract staff, in accordance with their contracts or labour-
management agreements.
The Study team found, on the whole, the museum staff is a valuable
resource, with many talented, skilled and devoted individuals, and
it is their assumption that most of the staff would be employed by
the new society.
Relationship with the City:
The consultants' report proposes that the City take a more active
role in setting and measuring the cultural and financial
performance of the society entrusted with its collection and
building.
Staff support the consultants' recommendations for a more
accountable relationship between the City and the museum through a
new governance structure and will be reviewing the range of
implications and best way to facilitate such a relationship.
Staff will review options and report back to Council on the
creation of a new society and a process for Board appointments.
The consultants also recommend that a series of cultural
objectives be made explicit in any new agreements with the Museum
and that these be used to measure the Museum's performance on an
annual basis.
In the past, the Museum was granted operating funds based on the
Lease Agreement. The consultants recommend that the new society
be required to apply for annual grants in the same manner as most
other cultural institutions and that these grants be reviewed by
the Office of Cultural Affairs.
Many of the issues around accountability and access to City
services and resources raised by the consultants in this report,
have also been expressed at various times by Council and City
staff as well as the Boards and management of all of the major
exhibiting cultural institutions including the Vancouver Art
Gallery, Vancouver Maritime Museum and Pacific Space Centre.
Staff recommend that Council request a staff review of the City's
relationships with these institutions.
Vancouver Museum Foundation:
In 1987 the Province of British Columbia passed an Act
establishing the Vancouver Museum Foundation. The Foundation's
objectives were to encourage, receive and administer funds for the
Vancouver Museum and other associated institutions as determined
by the Board. The Board was to be a mix of publicly and privately
appointed members including an appointment by the City. However,
to date, no public Board appointments have been made.
The relationship between the Foundation and the Vancouver Museum
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Association, and what, if any, have been the benefits to the
Museum, is not yet clear. While the Foundation has been active,
it is reported that no funds have been contributed to the Museum.
The Study Team therefore recommend that staff review and report to
Council on the activities and assets of the Foundation and on the
City's role and responsibilities as outlined in the enabling
legislation with a view to clarifying the relationships.
Physical Change
The consultants' report identifies and itemizes a series of physical
improvements to improve the visitor experience and thereby improve
earned revenue potential as well as to bring the Museum up to current
codes and standards.
The building is already scheduled to undergo some major changes through
the Pacific Space Centre capital improvement project. The consultants
recommendations give priority to those improvements which build on, or
complement this work and which enables construction to be undertaken in
concert with the Pacific Space Centre's timeframe which proposes to
close the facility to the public from January through May, 1997. The
Study Team recommendations include improvements to:
Lobby/Visitor Amenities
In collaboration with the Pacific Space Centre project, the Study
Team recommended changes to the lobby configuration including a
centralized point of entry, unified reception and ticketing
location to encourage cross-marketing, improved lobby exhibits,
re-instatement of a restaurant, moving the gift shop and improving
the quality of the public area finishes to reflect a contemporary
institution.
Image/Signage/Communications
A series of changes to improve the public's ability to access the
Museum including improving the entrance, centralizing one
information/ticketing booth for both tenants, improving signage,
improving gallery sequencing, and producing current banners,
brochures and information materials.
The Building and its Relationship to the Site
These changes are to enhance the Museum's profile within the park
including developing outdoor exhibits focussed on
natural/historical themes, and improved landscaping.
The Galleries
The Study Team recommend developing an overall gallery plan which
will provide a progressive series of galleries to support both
permanent and temporary exhibitions. The proposal includes
filling in the courtyard at wing "B" to provide additional
exhibition area and to create a functional gallery flow enabling
the visitor to move from exhibit to exhibit without re-entering
the lobby.
The City's Facilities Management staff have conducted a general
overview of the proposal. Staff recommend that the capital
improvements outlined in the consultants' report be reviewed and
developed in more detail for consideration in the 1997-1999 Capital
Plan.
Implementing the Change
The Study Team and City staff recognize that change and the process of
change is often difficult and uncertain. However, by working together
with all interested members of the community, the City, board
directors, staff, volunteers, and patrons have the opportunity and
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ability to redefine and refocus the Museum to meet the community's
needs.
To ensure continuity of public service and a smooth and efficient
transition from the current operating society to a new organization,
staff are recommending that a Transition Team be charged with planning,
negotiating and reporting back to Council on:
the process of transition from the VMA to the new society;
the structure of, and potential Board candidates for, a new
society;
the results of a detailed operational audit of the Vancouver
Museum Association including the financial and collection
resources;
an operating agreement for the new society, and/or a
partnership of the new society and the RBCM;
a detailed operating plan and budget for the interim three-year
period;
a detailed program and budget for proposed capital
improvements;
the status of the Vancouver Museum Foundation.To ensure continuity
with the review process, staff recommend that the staff
appointments to the Steering Committee continue as the core of
Transition Team. Neither Cultural Affairs nor Finance staff have
the time to manage the day-to-day operations of this transition
process. Clearly, however, the implementation of these
recommendations will require significant staff time. Funding may
be necessary to backfill for city staff seconded to this process,
or to hire someone to undertake the City's interests in the
transition period and staff recommend that a transition plan and
budget be developed to the satisfaction of the City Manager.
Within that budget, it is also recommended that the City extend the
contract of the lead consultants of the Operations Review, Sears &
Russell Consultants Limited, on an "as needed" basis for a term of up
to six months, to advise the Transition Team.
Staff anticipate that additional consultants may be required to assist
in the transition process. Included in this category, staff are
recommending a detailed financial audit of the Vancouver Museum
Association as well as a detailed collection audit.
Proposed Timeline for Change
It is the Study Team's belief that clear direction and decisive action
will signal the City's interest, rekindle some confidence in the
community, and "kick-start" the process of change. Staff endorse this
assessment and, should Council approve the recommended option,
recommend that an expeditious transition process should be implemented
immediately. The following timeline proposes a series of steps which
result in the development of a new governing entity, the conclusion of
a new operating agreement, and a plan to revitalize the building and
exhibitions.
Adoption by Council of a Course of Action February 1996
Restructure the Governance of the Museum April 1996
Approve the Operating Agreement with the
new society and/or the new society in
partnership with the RBCM May 1996
Approve a three-year operating plan and budget July 1996
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Submit capital improvement program and budget
to the 1997-1999 Capital Plan process June 1996
Implementation of Operational Changes April-December 1999
1997-1999 Capital Plan approved November 1996
Implementation of Capital Improvements Jan 1997-Dec 1999
Each of these milestones will require Council approvals. Staff believe
that while the new society will need a commitment in principle from
Council to develop their future plans, there are a series of
opportunities for Council to review their performance and make
adjustments to future funding commitments and operational
relationships.
FINANCIAL IMPLICATIONS
Transition Costs
Staff have estimated the transition costs to be in the range of
$75,000. As the timeframe for this transition is limited, staff are
seeking Council's approval by way of this report to extend the contract
with Sears & Russell Consultants Limited for the provision of
transition process advice and implementation as outlined in this report
possibly including the services of a Vancouver-based Co-ordinator,
subject to terms and conditions to the satisfaction of the City
Manager.
Staff recommend that $75,000 be added to the 1996 Operating Budget to
fund the transition process. Staff have reviewed alternate sources of
funds including the Vancouver Museum Association's 1996 Operating
Grant. Under the terms of the agreement, the City continues to pay out
the grant in bi-weekly payments during the notice of termination. The
Transition Team will be working toward a seamless transition from the
VMA to a new society, and staff will be reporting back to Council to
seek approval to transfer the balance of the 1996 Operating Grant to
the new society. This new society will have very limited resources in
the start-up period. Until the new society is up and running, and some
noticeable improvements are made, it is unlikely that any private
sector funds will be forthcoming. Staff are therefore recommending
that the transition costs be allocated from the 1996 Operating Budget.
Operating Funds
The Study Team has measured the financial impact of implementing the
recommended option in some detail developing an interim three-year
operating budget as well as long term operating projections. Staff
have reviewed these assumptions and support the financial projections
as reasonable in relation to past experience at the Vancouver Museum,
as well as other local exhibiting institutions.
In order to recapture market, there needs to be an investment in the
Museum facility, in the product, and in marketing and visitor services.
The report reviewed the "Status Quo Option" which kept government
funding at existing levels and concluded that the institution would
have insufficient resources to carry on a renewal program. Further,
without renewal, attendance and earned revenues would continue to
decrease, and without programs and attendance, government and private
sector support would be further jeopardized. The view of the Study Team
was that without an interim infusion of funds the downward trend would
continue to the point where the Museum would close.The Study Team's
budget projections indicate that additional operating funds of up to
$200,000 per year for three years is required to underwrite the level
of activity necessary to regenerate the institution. Staff agree the
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potential success of the recommended option is tied to an increased
level of operating support for the transition period. Therefore, if
Council approves the recommendation to revitalize the Museum, staff
recommend that Council also approve, in principle, a supplementary
grant to the new society of up to $200,000 per year for a period of
three years, subject to a report back with a detailed operating plan
and budget for the new society. The $200,000 for 1996 would be funded
as an addition to the 1996 Operating Budget estimates which Council
previously reviewed in January.
The long-term budget projections are dependant on the performance of
the new Museum and assume that, with an improved product, and effective
management and marketing strategies, that earned revenues, government
grants and fund raising will be improved or restored to previous levels
and support a modest annual operating surplus.
It should be noted that the long-term operating projections do not
anticipate any increase in funding from the City of Vancouver, or the
Province of British Columbia, and, it is assumed that the Museum will
qualify and be granted funds under any of the current or new federal
Museum programs.
Other Funding Considerations
The question of GVRD funding for the Museum has been raised. The GVRD
at present has a modest program of cultural grants to selected
"regional cultural institutions" for which the Vancouver Museum in its
current mode, is arguably not eligible. At the same time as the
Vancouver Museum profile and attendance has been declining, a network
of local museums within the region has developed which makes the early
prospect of the GVRD being a source of funding more doubtful.
The GVRD has just recently initiated a Regional Strategic Cultural
Planning Process but it is not expected that this will have an effect
on Regional funding policies or programs soon. This is not to say the
Council could not be successful through its own channels.
If a substantial GVRD commitment could be obtained for both capital and
operating, the City might wish to consider either an enhanced
development Option 5, or move up to Option 6, a new facility (with a
broader mandate) in a high profile location. Staff believe that the
recommended Option 5 also allows for this long term goal of shared
funding to remain active.
Staff have reluctantly concluded that even with a smaller museum,
Development Option 4 - a restructured Museum organization operating
within the City's existing funding framework - is not viable in the
longer run. This would limit the City's financial commitments to
current funding levels but is much less likely to achieve revenue
targets in attendance or in earned income. It is also less likely to
continue to attract funding from the senior levels of government.
Staff believe this option is in reality a "slow death" model.
Consultants and staff believe action by the City of Vancouver is needed
now as there is no indication of a commitment from Regional sources in
the near future. It is the recommendation of staff that Council direct
staff to commence the process to implement Option 5 as outlined in this
report.
Capital Funds
The report identifies a range of capital improvements which are
necessary to upgrade the facility to contemporary codes and standards,
to improve the lay-out and accessibility of the Museum, and to provide
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exhibits and infrastructure necessary to attract new and repeat
visitors.
Preliminary cost estimates, attached to the consultants' report as
Appendix 3.1, are estimated to be in the order of $13.4 million. This
estimate does not include any provision for seismic, electrical, or
asbestos upgrading, which may be triggered by a capital improvement
program.
The Study Team recommended that the capital costs be phased over time
and shared between the public and private sectors. They estimate the
City's share to be in the range of $5 million and recommend a phased
approach with the City taking the lead role in initiating the
revitalization. It should be noted that this investment has not been
put forward as a specific business case, but rather as the appropriate
level of investment by the City in a capital program recommended as
necessary for regeneration to a viable museum.
The Museum has recently received a $1 million dollar bequest to be used
for capital improvements. This, along with a significant capital
commitment from the City would begin the process of noticeable
improvements in the infrastructure which would in turn help to attract
further private sector sponsorships and donations.
Staff recommend that Facilities Development staff, in consultation with
the Transition Team, be charged with developing a detailed program and
budget for the capital and exhibit infrastructure requirements as
outlined in the consultants' report as "Option 5" for Council's
consideration in the 1997-1999 Capital Plan.
CONCLUSION
There is still a passion for The Museum. Many people have devoted
immeasurable personal time and resources over the years to ensure its
existence and continued service to the community. Both the Study Team
and the Steering Committee, on behalf of the City, wish to recognize
and thank them.
The Study Team's conclusions, which are the foundation of this report,
are the results of thorough study and consultation. Many points of
view were heard, opposing points of view were respected. The resulting
recommendations are not being made lightly.
Staff conclude there are two alternative courses of action. Each has
risks.
Staff recommend proceeding with Option 5 - "Regenerate on Site" - as
the best available option to secure the institution, the collection and
the public service. There are no guarantees but staff believe that the
value of a Vancouver museum is recognized and a successful institution
would be supported by the community. The financial exposure of the
recommended option is contained, with control points along the way,
and, the innovative but pragmatic approach to governance and operations
has a reasonable chance of success.
If Council seeks an alternative to the recommended option, the
alternative is Option 2 - to "Mothball" the operation and collection.
Staff believe this is viable for the short-to-medium-term, however, the
community loses this unique access to its history and heritage, and, in
future, the risk is that the community could possibly lose the
collection itself.
In closing, staff wish to recognize the extraordinary contributions of
both Mr. Craig Aspinall, Vancouver Museum Association Trustee, and Mr.
Sandy Blair, VMREU Representative, Council appointees to the Review
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Steering Committee. We are grateful for their participation through a
difficult and sometimes painful task. We hope they will continue to
remain involved through the Transition Team and work with the City in
developing a new future for the Museum.
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