ADMINISTRATIVE REPORT

Date: June 19,1999
Author/Local: S. Harvey/6001
RTS. No. 00757
CC File No. 2201
CS&B Date: July 8, 1999

TO: Standing Committee on City Services and Budgets

FROM: Directors, Office of Cultural Affairs and Finance

SUBJECT: Vancouver Art Gallery - Annual Report & 1999 Operating Grant Request

RECOMMENDATION

THAT a 1999 operating grant of $1,831,400 be approved to the Vancouver Gallery Association; source of funds to be the “Other” Grants budget.

GENERAL MANAGERS’ COMMENTS

The General Managers of Community and Corporate Services RECOMMEND approval.

COUNCIL POLICY

On March 31, 1992, City Council approved a change in the basis of the City’s financial support to 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.

Approval of grants requires eight affirmative votes of Council.

PURPOSE

This report provides a review of the Vancouver Art Gallery's 1998 activities, and presents for Council's consideration their 1999 Operating Grant request.

BACKGROUND

Founded in 1931, The Vancouver Art Gallery (VAG) is an independent non-profit cultural organization which holds, maintains and exhibits the City of Vancouver’s fine art collection under an operating lease and license agreement with the City. The collection comprises over7,000 works of art with an estimated value of $90 million. The collection is owned by the City in trust for the people of Vancouver.

The VAG occupies a provincially-owned building which is leased to the City of Vancouver for a 99-year term. The City sub-leases the premises to the VAG Society.

1998 Year In Review

The Gallery has enjoyed a year of successes: critically acclaimed and widely attended exhibits and public programs; increased attendance and revenues from all sources; and the adoption and implementation of a new strategic plan.

Exhibits:

The VAG presents three streams of exhibits: Anchor exhibits of broad appeal presenting well known or historically significant artists; Contemporary art exhibits by local, national and international artists exploring current art practises; and exhibits from the permanent collection. Highlights of the major exhibits in 1998 were:

· The Edvard Munch exhibit attracted over 50,000 visitors - the VAG's largest attendance ever for a spring show;
· Pan Tianshou, launched a new support group, The Circle of Seven to work with the gallery in developing further Pan Asian projects;
· Down from the Shimmering Sky: Masks of the Northwest Coast was the major exhibit of the Gallery's season. It is now on tour throughout North America;
· Kate Craig: Skin, and weak thought were both important contemporary projects highlighting Vancouver artists;
· The Natural World and Audubon's Wilderness Palette presented in tandem both a contemporary and traditional view of the natural world.

As a complement to the exhibits, the Gallery presents a range of public programs including tours, animateur talks, lectures by scholars, artists and curators, Super Sunday programs for families, school programs and open studio events.

The Gallery continues its curated program of art acquisition. In 1998 it purchased or received as gifts over 225 new works of art - many by important Vancouver artists.

Operational Performance:

Two major highlights in the VAG's 1998 financial performances were:

· a 6% increase in attendance (188,000 visitors), a 9% increase in revenues from attendance ($950,000) and increases in ancillary revenues over the previous year; and

· the VAG qualified for the Vancouver Arts Stabilization Team funding which over five years, will assist the VAG in properly capitalizing their major exhibitions plans.

The Vancouver Art Gallery had an excess of expenditures over revenues of $71,392 on a total budget of $6.2 million at their fiscal year ending December 1998. The VAG's 1998 Annual Report has been circulated to Council. 1998 financial statements are attached to this report as Appendix "A".

Long Range Planning

The VAG completed a first step in its long-term institutional, functional and facilities planning with a Functional Program Overview and a Preliminary Public Consultation Review. As well, the Gallery entered into discussion with B.C. Building Corporation regarding a proposal to revitalize Robson Square.

1999 Plans

The VAG has planned a full year of exhibits and programs for 1999 including:
· an exhibit of Vancouver artist, Stan Douglas's photo, film and video works;
· Toulouse-Lautrec - originally planned for a limited three month exhibit has now been extended through the summer;
· Face to Face: Four Centuries of Portraits tracing 400 years of portraiture;
· Rauschenberg - one of the most prolific American artists of the 60s and 70s;
· An exhibit focusing on early modernism in Vancouver: The Rhetoric Of Utopia;
· Recollect - using works from the permanent collection as context for the new Millennium.

The VAG is continuing its planning work with particular emphasis on a series of Strategic Objectives. This involves continued to work to build and grow a broad base of support throughout the community; securing the resources to build and maintain programs of the highest quality; and ensuring that the VAG's physical resources meet the needs of the program and audiences.

DISCUSSION

Staff have reviewed the VAG’s 1998 program and plans for 1999 and are recommending to Council a 1999 operating grant of $1,831,400, based on the 1998 approved funding level. The 1999 grant has been increased by 1% over the 1998 grant to cover inflation based on Council policy. It has also been reduced by 1% consistent with the City's budget reduction program. OCA staff have reviewed the budgets and assumptions and support the financial projections as reasonable in relation to recent experience at the Vancouver Art Gallery, as well as other exhibiting institutions.

Staff have reviewed the VAG’s artistic and operational performance as well as their long-range plans and commend the staff and board for an articulate and integrated approach and the positive results of their plans. The VAG has succeeded in creating and maintaining a very high level of activity in the City, in working in responsive partnerships with other artists and communities and in developing the organization’s capacity to build and grow in a responsible manner.

The stated goals and performance measures set by the institution for the coming year appear to be both reasonable and achievable. Staff note that some aspects of private sector fund raising are below target. This is not inconsistent with other institutions in the current economic climate. However, if the VAG is hoping to embark on a major capital campaign, more attention to increasing the donor base will be necessary.

While much effort has been made in developing plans for the ongoing operations, more work is necessary to fully understand the implications of the physical needs and opportunities before the VAG through B.C. Building Corporation’s Robson Square proposal. In the coming year the VAG will need to have completed an internal assessment of the proposal against its functional and physical needs, its capacity to sustain and grow its operations within a new physical reality, a full financial analysis of the capital and operating costs of the proposal and have identified viable funding sources.

Finally, any proposal for future growth must be developed in consultation with the Gallery’s stakeholders, in particular through a broad-based public consultation process.

FINANCIAL IMPLICATIONS

The source of funds for the operating grant is the 1999 "Other” Grants allocation in the 99 Budget.

CONCLUSION

The Vancouver Art Gallery continues to present important programs and exhibits to a large audience. It is a well managed, successful institution with a good track record of public services. Staff are therefore recommending a 1999 operating grant of $1,831,400. to the Vancouver Art Gallery.

ATTACHMENTS TO THIS DOCUMENT THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

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(c) 1998 City of Vancouver