Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services and Budgets

FROM:

Directors of Finance and the Office of Cultural Affairs

SUBJECT:

Vancouver Maritime Museum

 

RECOMMENDATION

GENERAL MANAGERS' COMMENTS

The General Managers of Community and Corporate Services RECOMMEND approval of A and B.

COUNCIL POLICY

Council has approved annual operating grants to the major exhibiting institutions to support their ongoing operations since their formation as independent non-profit societies in 1971.

The City's relationship with the Vancouver Maritime Museum (excluding the St. Roch) is outlined in an operating/lease agreement in effect until May 31, 2000. The agreement between the City and the VMM with respect to the St. Roch expired on June 30, 1997.

Approval of a grant requires eight affirmative votes.

PURPOSE

This report seeks Council approval of the Vancouver Maritime Museum's 1999 Operating Grant request as well as a supplementary grant for the operations of the St. Roch.

BACKGROUND

The Vancouver Maritime Museum (VMM) has operated in its current location in Kits Point since 1958. The VMM was operated by the City until 1972 when it became part of the Vancouver Museums and Planetarium Association. In 1987 Council agreed to the dissolution of the VMPA into three distinct organizations: the Vancouver Maritime Museum Society, the Vancouver Museum Association and the BC Space Sciences Society. The City currently provides capital and operating support through grants to the Vancouver Maritime Museum as well as janitorial services, grounds and building maintenance and through the City's Building Management Department.

The St. Roch National Historical Site is owned by the City of Vancouver and housed in a City-owned structure adjacent to the Vancouver Maritime Museum. Up until 1995, the St. Roch was operated by the Government of Canada through Parks Canada. When the Federal Government withdrew from operations, it provided $75,000 per year for two years to the City as transitional funds which Council directed to the VMM as supplementary grants to help offset the additional operating costs associated with the St. Roch. At that time Council directed the VMM to develop a fund raising strategy to provide for the future operating costs associated with the St. Roch. In 1998 the VMM presented a three-year fund raising plan to Council and sought continued supplementary grants until the campaign is completed in 2001.

In 1998, the City commissioned two studies which will influence the future operations of the Vancouver Maritime Museum - the Kits Point Traffic, Parking and Access Study and the Vancouver Maritime Museum Future Operations Review. Both studies are nearing completion and will be reported to Council in March and April respectively of this year.

DISCUSSION

Operating Grant Request:

In accordance with the terms of the operating agreement with the Vancouver Maritime Museum Association, the organisation has submitted their 1999 grant request to the City. The major institutions' grant requests are based on the previous year's funding level, with a 1% inflationary allowance included, and reduced by 1% in accordance with the grant funding ceilings approved by Council on October 22, 1998 as part of the process to balance the 1999 budget.

Vancouver Maritime Museum $265,400 $265,400

While the current operating agreement has lapsed the facility is being operated on the same terms and conditions as contained in the last operating agreement. The City has commissioned an extensive review of the VMM's future operations. Once this review is complete, and Council has provided some direction regarding the options, staff will report back to Council with the VMM Society with draft terms and conditions for a new and corresponding operating lease agreement. As with the other major exhibiting institutions, one of the proposed changes to this new agreement will be the requirement for an annual performance review by Office of Cultural Affairs staff and a report to Council as part of their grant request. Staff have undertaken this review in 1998 and again in 1999. In addition to a financial evaluation, the VMM's performance is measured against a set of cultural objectives which was developed together with the VMM.

Staff have reviewed the budgets and assumptions and support the financial projections as reasonable in relation to recent experience at the Vancouver Maritime Museum, as well as other local exhibiting institutions. A copy of the VMM's draft statement of revenues and expenditures for the year ending December 31, 1998 are on file. Audited statements will be available following the Society's AGM. The Museum posted a surplus of $7,826 on a budget of $824,119. Notwithstanding a decrease in attendance (84,717), earned revenues increased. Fundraising was down by 14% over 1997 results. This is not unexpected as the St. Roch campaign competes with the annual campaign.

Much of the Museum's energies in 1998 have been focused on internal review and planning as part of the Operations Review. Public programming continues to highlight permanent exhibits - the "St. Roch", "Man the Oars and Map the Coast", "Modelmania: Ships to Scale", the "Children's Maritime Discovery Centre", and "Heritage Harbour" as well as temporary exhibits - "Pirates Cove", "Shipwrecked" and "Titanic". A full description of programs and exhibits is available on line at www.vmm.bc.ca.

St. Roch Supplementary Request:

When Council approved a supplementary grant for the operations of the St. Roch in 1997, it directed the Vancouver Maritime Museum to report back with a plan for a private sector fund raising campaign to secure sufficient funds to assume the full responsibility for the ongoing operations of the St. Roch. This plan, presented to Council in 1998, called for a two-part approach to raising awareness and funds to secure the future operations of the St. Roch. The goal is to raise $4 million to repair and maintain the St. Roch and its shelter through the establishment of a "St Roch Preservation Fund".

A detailed project status report is on file. In summary, in 1998 the Fund has beenestablished, the plans developing for the major special event (the voyage in 2000) and a number of smaller projects have been launched.

The Isumataq, a 152-foot painting of the north by Canadian artist, Ken Kirkby is currently on exhibit at the Burnaby Eight Rinks Complex and is being "sold" by the inch to public and corporate donors. It is planned that on completion of the campaign, and subject to Council's direction on the future of the VMM, the painting will installed in the St. Roch shelter as the backdrop to the vessel.

The primary event, in partnership with the RCMP, is the re-creation of the St. Roch's voyage through the Northwest passage. The event celebrates the 125th anniversary of the RCMP and the inclusion of Nunavet into confederation. The voyage will be made in the summer of 2000 by the RCMP patrol vessel, "Nadon" with stops at northern communities returning to Vancouver through the Panama Canal with stops at major Canadian and American cities.

This is a major undertaking with significant costs. It does however, have the ability to raise a national profile for the St. Roch and therefore a national funding base. Staff have reviewed the plans and are encouraged by the progress made to secure the associated costs through grants/donations and in-kind services.

A total of $830,000 has been committed to date. The RCMP and Province have jointly agreed to cover crew and vessel costs, valued at $505,000; the Canadian Coats Guard has committed logistical and icebreaker support for the voyage valued at $75,000; the St. Roch has been chosen as a Millennium Project by the Government of Canada's Millennium Bureau and support of up to $250,000 has been pledged and a further $250,000 is under consideration for the educational components of the voyage; a local naval architect has donated services to retrofit the "Nadon". In summary, the necessary infrastructure to undertake this ambitious project is now in place.

The VMM has engaged marketing and fund raising professionals to put together the private sector awareness and sponsorship campaigns. They are in discussion with several sponsors, although they have not announced any firm commitments. It is not anticipated that the campaign will be completed until 2001.

In 1998 when Council considered the St. Roch fund raising proposal, staff anticipated that the campaigns would take several years to implement and that the VMM would continue to seek the City's assistance through continued supplementary grants until 2001.

CONCLUSION

Council approved installments to the major institutions in January in advance of their 1999 Operating Grant requests. This provides interim cash flow to the institutions during the time that Council is considering its annual budget. The advance grant installment does not, however include support for the St. Roch. Staff are therefore bringing the VMM's 1999 Operating and Supplementary Grant requests to Council in advance of the two studies - the Kits Point Parking/Access Study and the Future Operations Review as the continued operation of the St. Roch without funding creates a significant cash flow problem for the museum.

Staff are therefore recommending approval of an operating grant in the amount of $265,400 as well as a supplementary grant in the amount of $82,000 towards the St. Roch.

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cs990415.htm

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