ADMINISTRATIVE REPORT


                                                       DATE:  March 8, 1996
                                                       Dept. File: VM      


     TO:       Vancouver City Council

     FROM:     Director of the Office of Cultural Affairs

     SUBJECT:  Distribution of Flow-Through Funding
               for the Vancouver Museum




     RECOMMENDATION

          THAT Council authorize  the Director of Finance to disburse flow-
          though  funds received  from  the Province  of British  Columbia,
          Ministry  of  Small  Business,  Tourism &  Culture,  through  the
          Cultural Services Branch, to the Vancouver Museum Association for
          the  duration of  the remaining  term of their  current operating
          agreement with the City, and on termination of that agreement, to
          the  newly  formed  Vancouver  Museum  Commission  for  the  1996
          operations  of  the Vancouver  Museum;  payment  to be  allocated
          concurrently with  the City's  1996 operating grant  in bi-weekly
          install-ments.


     GENERAL MANAGERS' COMMENTS

          The General Managers of Community Services and Corporate Services
          RECOMMEND approval of the foregoing.


     COUNCIL POLICY

     On  February 22, 1996,  Council approved a  series of recommenda-tions
     with  respect  to  the  future  operations  of  the  Vancouver  Museum
     including terminating the operating lease/agreement with the Vancouver
     Museum  Association,  and  the  creation of  a  new  Vancouver  Museum
     Commission to oversee the governance of the City's collection.


     PURPOSE

     The  purpose  of this  report is  to  seek Council's  authorization to
     receive and flow-though  funds from the  Province of British  Columbia
     for the operations of the Vancouver Museum as outlined in this report.


     BACKGROUND

     The Province of British Columbia through the Cultural Services Branch,
     Ministry  of Small Business, Tourism & Culture, has approved an annual
     operating grant in  the amount  of $190,000 to  the Vancouver  Museum.
     Generally, the Province disburses its grants directly to the recipient
     institutions; however,  in light of  their concerns around  the future
     operations of  the Museum, and their desire to ensure that their grant
     funds are used for  the full 1996 operations, they have requested that
     the City receive these funds in trust for the Museum.

     Staff propose to receive these funds from the Province and to disburse
     it  along with  the City's  grant in  bi-weekly install-ments.   Grant
     payments  will continue to be made to the Vancouver Museum Association
     for  the duration  of the  remaining term  of their  current operating
     lease/agreement with the  City, and on termination  of that agreement,
     grant  payments would be directed to the newly formed Vancouver Museum
     Commission.


     CONCLUSION

     The  Vancouver Museum  is  in  transition  and  this  report  seeks  a
     mechanism to secure  and allocate the  committed 1996 operating  grant
     from the Province to the operations of the Vancouver Museum.



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