ADMINISTRATIVE REPORT

Date: June 19, 1999

Author/Local: S. Harvey/6001

RTS. No. 00759
CC File No. 4008
CS&B Date: July 8, 1999

TO:	Standing Committee on City Services & Budgets
FROM:	Directors of the Office of Cultural Affairs and Finance
SUBJECT:	Vancouver Museum - Annual Report and Operating Grant Request

RECOMMENDATION

THAT an operating grant of $630,800 be approved to the Vancouver Museum Commission; source of funds to be the 1999 "Other" Grants budget.

GENERAL MANAGERS' COMMENTS

The General Managers of Community and Corporate Services RECOMMEND approval.

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.

Approval of grants requires eight affirmative votes.

PURPOSE

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

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 Commission. The Museum was operated by the City until 1972 when it became part of the Vancouver Museums and Planetarium Association. In 1987 Council agreed to thedissolution of the VMPA into three distinct organizations: the Vancouver Maritime Museum Society, the Vancouver Museum Association and the BC Space Sciences Society.

In 1996, Council approved a series of actions to undertake the process to revitalize the Vancouver Museum including the creation of a new governing society, the Vancouver Museum Commission (VMC), and capital improvements to the building. On June 17th Council approved the third phase in a three-phase capital revitalization project. Phases 1 and 2 included improvements to the public areas of the museum, a new orientation gallery and upgrades to "A" wing. Phase 3 will complete the galley renovations, add a new learning centre and install state-of-the art exhibits for the Vancouver Story.

1998 Year in Review

The Vancouver Museum Commission has submitted an annual report for staff review. Highlights of the year's activities included:

Exhibits:
· Mounted three unique and critically acclaimed special exhibits: Hello Again! A New Wave of Recycled Art and Design, Through My Eyes: Northwest Coast Artifacts through the Eyes of Contemporary First Nations People and City Lights: Neon in Vancouver, in addition to the permanent exhibits.

Education and Public Programs:
· re-instatement of the education and public programming staff and programs with more than 10,000 people participating in new programs;
· establishment of an Educators' Advisory Group;
· re-engagement of volunteers and docents;
· partnership with the Vancouver Maritime Museum and Pacific Space Centre for day-camp and summer-camp education programs.

Financial Performance:
· Attendance up 20% over 1997 and revenues from attendance are up 156%;
· 50% increase in gift shop customers over 1997 and 15% increase in sales;
· Fundraising though sponsorships and corporate in-kind donations over target by 23%.
· The Museum finished the year with a loss of $1,020. on a budget of $1.8 million.

The Museum's Annual Report will be circulated to Council shortly. Their 1998 financial statements with 1997 comparatives 1are attached to this report as Appendix "A".

1999 Plans

Special Exhibits and Public Programs:

· Currently on or planned for 1999: City Lights: Neon in Vancouver - will run through to April 2000, All about Blue, opening in October is a collaboration with the Canadian Asian Arts Foundation; Toy Soldiers, opening in November is an exhibit from the Museum's collection; and Dresses for Humanities, in collaboration with B.C. Children's Hospital Foundation, a private collection of Lady Diana's dresses will be shown at the Museum July 13 through September 8th, 1999;
· education and public programs are planned for each exhibition, the permanent exhibition and around special events;
· a pilot project for a larger City of Vancouver Millennium project is underway in 1999. This involves neighbourhood storey telling, photography and collective exhibitions of Vancouver Stories. The pilot is being tested in the Dunbar neighbourhood.

Planning
· As part of the physical and exhibition planning for the final phase of the Museum's capital revitalization program, a program of strategic planning initiatives are scheduled for 1999. The first step is to engage with the community to test and explore ways of telling the Vancouver Story;
· By the end of 1999 the physical planning will be advanced to enable final cost estimating and a Development Application to be filed;
· the Museum has committed to develop, integrate and implement by the end of 1999 both a capital and annual fund raising campaign.

DISCUSSION

Staff are recommending to Council a 1999 operating grant of $630,800, 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 Museum, as well as other local exhibiting institutions.

As part of the City's re-investment in the Museum, supplementary grants of $200,000 for three years was approved. Incremental expenditures which required supplementary funds included one-time costs associated with the recruitment of staff, costs associated with organizational change, temporary exhibits until such time as the permanents exhibits were revitalized, acquisition of collections management software, assistance in collection registration, and revitalization of the education programs. All of these projects have beeneither completed or are well advanced. As anticipated in 1996, the Museum has grown it's operations and revenues. Staff do not recommend further supplementary grants but rather encourage the Museum to continue to maximize their revenues from other sources.

Staff believe that the Museum is now well on the road to recovery. The new exhibits are well crafted, relevant to the Museum's new mandate and have received good visitor response. Public programs and education program are proving very popular and build on the visitor experience. Management and administration has improved and the museum functions in a more effective and accountable manner with a remarkably small staff relative to other museums of its size.

Areas for further development in 1999 will be in creating the fundraising infrastructure necessary to sustain the museum over time, and provide a base for a successful capital campaign. While the museum has a very limited history of professional fundraising, it does have a broad community of support.

An operating/lease agreement between the City and the Vancouver Museum Commission is in the process of negotiation. The Pacific Space Centre Society's (PSC) lease is also being re-negotiated. Both agreements call for a new formalised relationship between the two co-tenants in the building. An agreement was made in 1996 concerning space allocation and capital cost and revenue sharing which will form the basis of the new agreement. The PSC and VMC have struck a Board and staff committee and are carefully working through their areas of mutual interest. They already share guest services, marketing, and some school booking functions and are now working towards an agreement on new areas of joint revenue generation such as food service and pay parking. Staff will report back to Council on the new operating/lease agreements with the City as well as the agreement between the Societies.

FINANCIAL IMPLICATIONS

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

CONCLUSION

Staff commend the Vancouver Museum Commission and staff for their continues efforts I the revitalization of the Museum. Much progress has been made and the Museum is now well on its way to re-gaining its place as an important cultural institution in the city. Staff are recommending approval of a 1999 Operating Grant of $630,800.

ATTACHMENTS 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

1 1997 comparative financial information is for a 15-month period from the Vancouver Museum Commission inception to December 31, 1997.