ADMINISTRATIVE REPORT SUPPORTS ITEM NO. 1

CS&B COMMITTEE AGENDA

SEPTEMBER 25, 1997

ADMINISTRATIVE REPORT

Dated: September 15, 1997

CC File: 2052

TO: Standing Committee on City Services and Budgets

FROM: Director of Finance

SUBJECT: 1997 Grant Request

Vancouver Art Gallery Association

RECOMMENDATION

A.That a 1997 operating grant of $1,813,300 be approved for the Vancouver Gallery Association; source of funds to be the ‘Other Grants - Major Facilities’ allocation in the 1997 grants budget.

CONSIDERATION

B.THAT a grant of $90,000 be approved to the Vancouver Art Gallery Association to fund the second year of a closed circuit television security system replacement program; source of funds to be Contingency Reserve.

C.THAT a grant of $6,761 be approved to the Vancouver Art Gallery Association to fund repairs to the ceiling and lighting system above the main escalator; source of funds to be Contingency Reserve.

GENERAL MANAGER'S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of A and B and submits C and D for CONSIDERATION.

COUNCIL POLICY

On March 31, 1992, City Council 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 one-time new and non-recurring items continues to be considered outside of the base grant.

On April 19, 1994, when dealing with the 1994 - 1996 Budget Management Program proposals, Council approved a 5% reduction to the 1993 funding base of the operating grants to the Museum Associations and the Vancouver Art Gallery Association.

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On February 20, 1997, Council approved a reduction of $180,000 in funding to major exhibiting organizations receiving City funding. The allocation of the reduction to various organizations was confirmed by Council on March 13, 1997.

Approval of grants require eight affirmative votes of Council.

PURPOSE

This report presents the 1997 operating grant request for the Vancouver Art Gallery Association for Council’s consideration. In addition to the basic grant, funding for two new and non-recurring items is presented.

BACKGROUND

The operating grant to the Vancouver Art Gallery Association is adjusted annually by a blended inflation factor determined by the Director of Finance. This adjustment factor is calculated using the ratio of the salary and benefit costs to other costs in the Vancouver Art Gallery’s operation, and weighted by the average of the CUPE 15 negotiated settlement and the City’s general inflation factor for the year.

1997 OPERATING GRANT

The 1997 operating grant to the Vancouver Art Gallery Association has been calculated as follows:

1996 base grant	$ 1,865,400
Less: 1997 Budget Reduction	(61,100)
1997 Grant Base	$ 1,804,300
Inflation Adjustment @ 0.5%	9,000
1997 Recommended Grant
	$ 1,813,300

The inflationary adjustment recommended reflects a composite rate comprising the approved CUPE 15 wage settlement for 1997 (0%) and the 1% increase in other expenditure areas utilized in developing departmental budgets.

Funding for the 1997 Operating Grant to the Art Gallery Association, recommended at $1,813,300, is available in the 1997 Grants Budget.

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B. New and Non-Recurring Items

Two new and non-recurring requests totalling $96,761 have been submitted by the Vancouver Art Gallery Association. (Details of the requests are on file in the City Clerk’s Office).

1. Repair Ceiling and Lighting System

This request is for the City to fund the repair of the ceiling and lighting system above the Gallery’s main escalator. The Association notes that the ceiling tile in this area is unsightly and is a potential hazard to the public in the event of the tiles becoming dislodged. The has been a recent incident of a 12" x 12" section of ceiling falling approximately thirty feet after a heating coil leaked and saturated the ceiling tile. The Association also indicates that there have been recent incidents of patrons missing the landings and stumbling due mainly to the inadequate lighting on the escalator.

The Association has obtained a quotation for a replacement ceiling system with lighting at the top and bottom of the escalator. The estimated cost is $6,761.

The Manager of Building Management Services, Corporate Services has reviewed the request and has confirmed that the work is necessary and the estimate is reasonable.

2. Closed Circuit Television Security System

The security system at the Vancouver Art Gallery has been identified as a problem, as the existing camera system is 15 years old, and due for replacement. In 1996, the security co-ordinator of the City completed a review of the security camera system and recommended the purchase of a new system at a cost of $300,000. The plan was to phase in the new security cameras and monitors over five years so that a complete system will be in place at the end of the project. Council approved the $60,000 in 1996 for the first instalment of the this five year program. As this funding was not sufficient to start the replacement program, this funding has been carried forward to 1997.

The City’s security co-ordinator now estimates that the first phase of the replacement program will cost about $150,000. This will provide for replacement of the existing cameras. The subsequent phases will involve replacement of cabling, controllers and monitors. Accordingly, staff suggest that funding of $90,000 be provided for 1997 (ie. $150,000 less existing funding) and that the subsequent stages be referred to the 1998 Supplementary Capital Budget.

Funding for the New and Non-Recurring items are submitted separately for Council’s consideration. The source of funds for these requests, if approved, will be Contingency Reserve.

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(c) 1997 City of Vancouver