Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services and Budgets

FROM:

Directors of the Office of Cultural Affairs and Finance

SUBJECT:

Pacific Space Centre - Annual Report and Operating Grant Request

 

RECOMMENDATION

GENERAL MANAGER’S COMMENTS

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 current operating/lease agreement between the City and the Pacific Space Centre Society has lapsed and is in the process of being renegotiated. In the intervening period, the relationship is being continued on generally the same terms and conditions as contained in the last operating agreement.

Approval of grants requires eight affirmative votes of Council.

PURPOSE

This report provides a review of the Pacific Space Centre Society's 1998 activities, presents for Council's consideration their 1999 Operating Grant request, and report on the repayment of bridge financing provided by the City for the PSC's capital improvement project.

BACKGROUND

In 1967 as part of the City’s Centennial celebration, the Vancouver Museums and Planetarium Association was relocated to a prominent new building in Vanier Park. Over the years facilities have expanded to include the H.R. MacMillan Planetarium and the Southam Observatory. In 1987 Council approved the dissolution of the VMPA and the creation of three new societies including the Pacific Space Centre Society (PSC). The PSC now shares the building with the Vancouver Museum, and presents educational programs and exhibits in the areas of astronomy, space science, space technology, remote sensing and earth management.

The PSC have completed an extensive capital improvement project, funded in part by the Canada/B.C. Infrastructure Program. As part of the project, Council approved a repayable interest free grant of up to $1.2 million to bridge finance the Canada-BC Infrastructure Project funds. The grant was to be repaid with the proceeds from the Canada-BC Infrastructure Program. In addition, on June 1, 1995 Council approved up to $100,000 towards building upgrades as a direct result of the PSC's capital project. The project was completed and the new Pacific Space centre opened to the public in October 1997.

1998 Year in Review

1998 was the first full year of operations of the new Pacific Space Centre. The new permanent galleries and exhibits have been well received. New on-site galleries, programs and exhibits include:

· Groundstation Canada - with programs demonstrating living in space;
· Cosmic Courtyard - a hands-on gallery;
· the H.R. MacMillan Planetarium showing a range of live and projected programs from Night of the Martians to Laser/Light shows;
· Virtual Voyages - a computerized simulator ride.

In addition the PSC continues to offer school programs, summer-camp and day-camp programs for school holidays, as well as outreach programs for K - 7 science teachers in collaboration with Science World and the Vancouver Aquarium.

The PSC also continues in its role as the Pacific Region Canadian Space Resource Centre,funded by the Canadian Space Agency and providing information and activities relating to Canada’s role in space exploration.

1999 Plans

The Pacific Space Centre are developing “themed” programs, exhibits and attractions. This maximizes marketing opportunities and enhances visitor experience. This approach was used in early 1999 with a new Dinosaur theme, through March break with a Mars theme and opening in June, a comet theme. Comet Impact! is a new Virtual Voyage 3-D animation ride which provides a simulated experience of the Kirsh Kennedy comet. In collaboration with this opening, a new multimedia show will be presented in the Planetarium, The Universe Tonight - Summer Skies which also explores comets and meteors.

The PSC continues to collaborate with local science centres - Science World and the Aquarium for a teacher training program, Engaging Science as well as other national and international science centres in developing new programs and exhibits.

DISCUSSION

Staff are recommending to Council a 1999 operating grant of $443,000, 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 Pacific Space Centre, as well as other local exhibiting institutions.

The Pacific Space Centre had an excess of expenditures over revenues of ($89,360) at their fiscal year ending December 1998. The PSC's Annual Report will be circulated to Council. The 1998 financial statements are attached to this report as Appendix "A".

The opening of the new Space Centre has realized a significant increase in attendance with 175,000 visitors in 1998. In the first full year of operations revenues from attendance has almost doubled ($980,000). However, this is still well below targets for public attendance set by the PSC in their expansion planning ($1.6 million). School attendance is on target. The PSC will have to increase revenues to meet the increased operating costs of the expanded Space Centre. Staff recommend that they explore all viable ancillary revenue opportunities such as food service primarily for customer service reasons. The most significant and meaningful revenues will come from increasing revenues from attendance.

The operating/lease agreement between the City and the PSC has expired and is being renegotiated. At the same time, an agreement between the City and the Vancouver MuseumCommission will be finalized. Both agreements call for a new formalised relationship between the two co-tenants in the building. An agreement was made in 1996 between the PSC and VMC concerning space allocation and capital cost and revenue sharing which is to form the basis of their new agreement. The PSC and VMC have struck a Board and staff committee and are carefully working through their areas of mutual interest. The two societies already share guest services, ticketing, marketing, and some school booking functions. They are now working towards an agreement on new areas of joint ancillary 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.

Loan Re-payment

When Council approved bridge financing in June of 1995, the project as scheduled for completion, and the grant repaid, by the end of 1997. On April 16, 1998 Council approved the conversion of the outstanding $300,0000 in bridge financing to an interest-bearing loan, a total of $320,733 including interest, to be repaid by December 1999. $100,000 of the loan was repaid on December 31, 1998 and a further $200,000 was repaid on March 31, 1999. The outstanding balance ($20,067 as at March 31st) continues to accumulate until discharged. The PSC have indicated that they will have completed re-payment before December 31, 1999 as per the original agreement.

FINANCIAL IMPLICATIONS

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

CONCLUSION

Staff commend the Pacific Space Centre staff and Board for their success with their capital expansion project and in their improved working relationship with the Vancouver Museum. Staff also commend the PSC on their marketing efforts and increasing profile within the community. Staff are recommending approval of a 1999 Operating Grant of $443,000.

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

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cs990708.htm

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