October 26, 1998

To:Strategic Policies and Priorities Committee

From:City Clerk

Subject:Administration of the Arts and Culture

Grants Program in 1999

Recommendation:

The Municipal Grants Review Committee on October 26, 1998, recommended to the Strategic Policies and Priorities Committee the adoption of the attached report (September 11, 1998) from the Commissioner of Economic Development, Culture and Tourism respecting the administration of the Arts and Culture Grants Program in 1999; subject to amending Recommendation No. (3) by adding the following new (c):

"(c)Caribana;"

The Municipal Grants Review Committee reports, for the information of the Strategic Policies and Priorities Committee having referred the report dated October 16, 1998, from Ms. Anne Collins, President, Toronto Arts Council, to the Commissioner of Community and Neighbourhood Services for inclusion in the consolidated budget report requested to be submitted to the next meeting of the Municipal Grants Review Committee to be held on November 20, 1998; and

Background:

The Municipal Grants Review Committee had before it the following reports and communications:

-(September 11, 1998) from the Commissioner of Economic Development, Culture and Tourism respecting the administration of the Arts and Culture Grants Program in 1999;

-(October 16, 1998) from Ms. Anne Collins, President, Toronto Arts Council, presenting options for the delivery of the cultural grants budget administered by the Toronto Arts Council;

-(September 15, 1998) from Mr. Gerald Smith, Lakeshore Arts;

-(September 15, 1998) from Mr. Silvio Sauro, Chair, Etobicoke Municipal Arts Commission;

-(October 21, 1998) from Ms. Joy Hughes, Cedar Ridge Studio Gallery;

-(October 22, 1998) from Ms. Claire Hopkinson, General Manager, Producer, Tapestry Music Theatre;

-(October 22, 1998) from Ms. Angela Lee, Program Director, Art Starts;

-(October 22, 1998) from Ms. Elizabeth Cinello;

-(October 22, 1998) from Ms. Wendy Lilly, Waterfront Trail Artists;

-(October 22, 1998) from Mr. Dirk McLean;

-(October 22, 1998) from Mr. Robin Collyer;

-(October 22, 1998) from Mr. Darren O'Donnell, Artistic Director, Mammalian Diving Reflex;

-(October 23, 1998) from Mr. Michael Thomas, Artist, Lakeshore Village Artists Co-operative in South Etobicoke;

-(October 23, 1998) from Ms. Rina Fraticelli, Wild Zone Films;

-(October 23, 1998) from Ms. June Callwood;

-(October 23, 1998) from Ms. Sarindar Dhaliwal;

-(October 23, 1998) from Mr. Andrew Harwood, Director, Mercer Union;

-(October 23, 1998) from Ms. Lorna Livey, Fifth Street Gallery;

-(October 23, 1998) from Ms. Rosa Maria Luza, Director, The Patron of Peruvian Arts;

-(October 23, 1998) from Mr. Cheuk C. Kwan;

-(October 23, 1998) from Lee Pui Ming; and

-(October 24, 1998) from Ms. Joan A. Pierre.

The following persons appeared before the Municipal Grants Review Committee in connection with the foregoing matter:

-Mr. Gerald Smith, Lakeshore Arts;

-Mr. Donald Moffat, Member of the Board, and Ms. Rita Davies, Toronto Arts Council;

-Mr. Michael Thomas, Artist, Lakeshore Village Artists Co-operative; and

-Councillor Joe Mihevc, York - Eglinton.

City Clerk

R. Dyers/tl

Item No. 1(k)

(Report dated September 11, 1998, addressed to the

Municipal Grants Review Committee from the

Commissioner of Economic Development, Culture and Tourism)

Purpose:

To establish a process for the administration of Arts and Culture grants in 1999, pending the resolution of the structure for cultural services currently before the Special Committee to Review the Final Report of the Toronto Transition Team.

Funding Sources, Financial Implications and Impact Statement:

Extending the Toronto Arts Council's grant agreement for one year will require the funding of an administration grant to the TAC in the 1999 Operating Budget.

Recommendations:

It is recommended that:

(1)the Municipal Grants Review Committee's review of Arts and Culture grants policy be deferred until Council has given final consideration to the structure for the delivery of cultural services through the Special Committee to Review the Final Report of the Toronto Transition Team;

(2)for 1999, the Toronto Arts Council receive and review all arts and cultural grant applications City-wide, except those noted in Recommendation No. (3)

(3)for 1999, the Commissioner of Economic Development, Culture and Tourism receive and review grant applications from:

(a)the major five cultural organizations (Art Gallery of Ontario, Canadian Opera Company, National Ballet of Canada, Toronto Symphony Orchestra, and National Ballet School); and

(b)the local arts councils (Arts York, Arts Etobicoke, Scarborough Arts Council, and Lakeshore Arts);

(4)the Toronto Arts Council, as a condition of its administration grant, establish, in a manner satisfactory to the Commissioner of Economic Development, Culture and Tourism:

(a)a separate process for the review of grant applications from community-based arts and cultural organizations sensitive to the past practices of the former municipalities; and

(b)a plan for the further restructuring of its board of directors to increase the representation of persons with experience in the community arts sector;

(5)the grant agreement with the Toronto Arts Council be extended for a period of one year from the expiry of the current agreement on March 31, 1999;

(6)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

At its meeting of February 4, 1998, under Clause No. 1 of Report No. 1 of The Community and Neighbourhood Services Committee, City Council directed the Commissioner of Community and Neighbourhood Services to undertake the research and consultation necessary to develop an integrated Municipal Grants Policy, including revised grants policies for each service area.

Under the same clause, Council adopted interim measures for the administration of Arts and Culture grants. Under these measures, the Toronto Arts Council (TAC) was generally assigned responsibility for applications based in the former city of Toronto, while departmental staff administered grants from the rest of the city. The Etobicoke Municipal Arts Commission was given a role in reviewing applications originating in the former Etobicoke.

At its meeting of March 4, 1998, City Council established the Municipal Grants Review Committee with terms of reference that included, inter alia, steering "the development of an integrated Municipal Grants Policy for implementation in 1999 and, after consultation with the relevant Standing Committees, recommend approval of the policy to the Strategic Policies and Priorities Committee".

In addition to these actions, at its meeting of February 5, 1998, the Special Committee to Review the Final Report of the Toronto Transition Team referred those issues relating to the structure of the Toronto Arts Council, outlined in a communication (February 5, 1998) from the President, Toronto Arts Council, to the Chief Administrative Officer for consideration in a future report to the Special Committee.

In preparation for the development of a new policy for Arts and Culture grants, staff, in partnership with the Toronto Arts Council, has undertaken a public consultation program involving circulation of a discussion paper, public workshops, and interviews with past grant applicants. An advisory committee chaired by Councillor Ashton, and comprising community members, has supplemented the process.

Discussion:

Deferral of Consideration of New Policies:

The long-term structure for making Arts and Culture grants will be considered by Council through the Special Committee to Review the Final Report of the Toronto Transition Team based on a report from the Chief Administrative Officer. This report is scheduled to be before the Special Committee in November and Council in December. As that debate will have bearing on the future delivery of Arts and Culture grants, policy recommendations are not being forwarded to Municipal Grants Review Committee at this time.

Procedures for 1999:

While the long-term structural issues are debated elsewhere, an interim plan is needed so that planning for the delivery of the grants program in 1999 can get underway. This report recommends that the Toronto Arts Council be given responsibility for the administration of all grants in 1999 with two exceptions: five of the largest seven organizations, and the four local arts councils.

(a)Major Organizations:

In their submission to the Arts and Culture Grants Policy Review, the seven largest organizations recommended a phased approach to the expansion of responsibilities on the part of the Toronto Arts Council. In particular, they recommended that, for 1999, the five large organizations that were funded by the City directly continue to be administered in this way.

Prior to amalgamation, these organizations were funded solely by Metropolitan Toronto, under specialized criteria developed for major regional institutions. They are national institutions, large employers and contribute significantly to the tourism infrastructure of the City. The criteria used to evaluate these organizations go well beyond the artistic merit of the organizations, and include economic and tourism dimensions.

Accordingly, it is recommended that, for 1999, these organizations continue to be funded directly through the City and not through the arm's-length Arts Council.

(b)Local Arts Councils:

It is recommended that the four local arts councils continue to be funded by Council directly through the Department.

The local arts councils are membership-based service organizations that seek to enhance their communities by serving the needs of artists and arts organizations. Unlike the Toronto Arts Council, they are not funding bodies, and they do not make grants of any kind.

The criteria used to evaluate these organizations have historically been related to the quality of service to a geographic area, and not those related to artistic or cultural merit. The services they provide complement those provided by the Department through the Culture Division. As a result, it is recommended that these organizations continue to be funded directly by Council on the advice of the Commissioner of Economic Development, Culture and Tourism.

In its submission to the Arts and Culture Grants Policy Review, Arts Etobicoke recommended that the arts councils be funded under a purchase of service arrangement. The Department agrees with this approach, and intends to enter into discussions with the local arts councils to move toward purchase of service arrangements in time for the 2000 funding cycle.

(c)Conditions:

In expanding its role to administer grants City-wide, the Toronto Arts Council will inherit responsibility for a wide range of non-professional arts and cultural organizations. A number of these organizations have expressed concern that one single organization cannot embrace the administration of grants for both professional and non-professional activity.

As a result, it is recommended that the Toronto Arts Council undertake the development of a process that addresses these concerns, and that the TAC continue to restructure its Board to reflect all of the arts and cultural organizations that will fall under its jurisdiction.

(d)Extension of Agreement:

The Toronto Arts Council is an incorporated, not-for-profit organization that operates under the authority of a grant agreement originally established with the former City of Toronto. The agreement provides for, inter alia, Council to appoint five Councillors to a 26-member Board of Directors. The agreement establishes the "arm's-length" principle by delegating the authority to give final approval to grant allocations without further City Council approval. It establishes a series of accountability measures, including both quarterly and annual reports. The TAC's operating costs are paid by the City of Toronto through a grant.

The five-year term of the agreement expires on March 31, 1999. In view of the recommendations contained herein, it is recommended that the agreement be extended for a period of one year, pending resolution of the long-term structural issues by Council.

Conclusions:

Council will consider the long-term structure for the Toronto Arts Council through the Special Committee later this fall. In preparation for restructuring in this area, it is recommended that the Toronto Arts Council expand its function to the entire city in 1999. The Department will continue to administer grants to the major five organizations, and will also maintain responsibility for local arts councils with a view to moving towards purchase of service arrangements in 2000.

The Commissioner of Community and Neighbourhood Services concurs with this report.

Contact Name:

John Elvidge

Tel: 392-9046/FAX: 392-3355

john_d._elvidge@metrodesk.metrotor.on.ca