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Report To: General Government Committee
Date of Meeting: June 17, 2019
Report Number: CAO-005-19 Resolution: GG-414-19
File Number: By-law Number:
Report Subject: Possible Merger of the Museum and Archives Board, Library Board
and Visual Arts Centre
Recommendations:
1. That Report CAO-005-19 be received;
2. That Council either,
(a) direct staff to establish a joint Museum Library transition committee, composed of
Board members and staff from both organizations, and taken all necessary steps to
merge the Clarington Library Board with the Clarington Museum and Archives Board, in
a manner that will preserve the CMOT grant; effective January 1, 2020; or
(b) direct that the Clarington Library Board and the Clarington Museum and Archives
Board continue to operate using the current governance structures; and
3. That the Clarington Library Board, the Clarington Museum and Archives Board and the
Visual Arts Centre be advised of Council's decision.
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Report CAO-005-19
Report Overview
This Report provides Council with information to inform a decision respecting the possible
merger of the Clarington Library Board and the Clarington Museum and Archives Board.
1 . Background
1.1 At its meeting on February 25, 2019, Council passed the following resolution
(#CG-114-19 and #C-252-16):
That staff consult with the Clarington Museum and Archives, Visual Arts and
Library Boards regarding the possibility of operating under a single board, and
report back to the General Government Committee prior to summer recess.
1.2 In October 2016, Council first considered the possibility of amalgamating the Clarington
Museum and Archives Board (the "Museum Board") with the Library Board (see Report
LGL-006-16) LGL-006-16. Sections 3.11 through 3.16 of that Report outlined some of
the issues that would have to be considered as part of any proposed amalgamation.
That report also provided a history of both Boards.
1.3 At the May 22, 2019 meeting of the Library Board, the following resolution was passed:
That the Clarington Public Library Board advise the Municipality of Clarington
that it is interested in proceeding to the next step in the possible merger of the
Library and the Museum.
1.4 At a meeting of the Museum Board held on June 6, 2019, the Board discussed the
possibility of merging with the Library Board, but no resolution was passed. The Board
will be meeting on June 13, 2019. Any resolution passed by the Board will be provided
with an update memo to Committee prior to the June 17, 2019 GGC meeting.
2. Visual Arts Centre
2.1 As directed by Council, the Visual Arts Centre ("VAC") was contacted regarding the
possibility of merging. The issue was discussed at a meeting of the VAC's Board of
Directors. The position of the Board is set out in a letter from the VAC's Executive
Director dated April 5, 2019 (see Attachment 1 to this Report).
2.2 Given the VAC's response, staff did not pursue the possibility of amalgamating with the
VAC any further.
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3. Museum and Library Boards
3.1 As was noted in Report LGL-006-16, libraries, museums and archives are natural
partners for collaboration and cooperation because they serve the same community in
similar ways. They offer universal access, support for life-long learning that enhances
community development, and act as gathering places for social interaction and
engagement.
3.2 With respect to both operations and governance, there are many opportunities to create
synergies by linking these types of organizations. What follows is a summary of the
issues that need to be considered as part of any merger discussion involving the
Museum Board and the Library Board.
Governance
3.3 Both Boards are independently appointed boards that provide governance and
oversight while operating at arm's length from the Municipality. This would not change
under a merger. The only way to change this basic governance model would be to
reestablish the Museum Board as a committee of Council. This option was discussed in
Report LGL-006-16, but not pursued on the basis that it would effectively replicate the
existing Museum Board's structure but eliminate some of its benefits — i.e. involvement
of Board members from different parts of the community with specific knowledge and
expertise; strong volunteer base; and more expeditious decisions.
3.4 Both Boards have been created and are operated in accordance with legislative
requirements and standards. The Ministry's qualifying requirements and mandated
reports are very similar for both Boards.
3.5 Section 20(d) of the Public Libraries Act states that a library board "may operate special
services in connection with a library as it considers necessary". This language indicates
a public library board could operate a museum.
3.6 The Museum must operate in accordance with the Ministry of Tourism, Culture and
Sport's "Standards for Community Museums in Ontario" (the "Standards"). The
Standards provide that "a community museum must be ... governed by a publicly
accountable body" with "a written mandate, which may take the form of a constitution
with by-laws, an act, a municipal charter, etc. ... that establishes its legal, non-profit
status and purpose, and its objectives." The Standards further provide that "[t]he
governing body of a museum may be an elected or appointed Board of Trustees or
Directors, or a Management or Advisory Board or Committee of municipal officials.
Whatever its formation, it is the legal entity that is accountable to the public and to the
museum community for the policy, financing and administration of the museum."
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The governing body must be "solely responsible for the operation of the museum" and it
"cannot have a mandate that includes other municipal entities (e.g. libraries, tourist
offices, or recreation centres)". This language gives rise to a potential issue regarding
eligibility for a provincial Community Museum Operating Grant ("CMOG") (discussed
below).
3.7 Other governance issues are addressed in the confidential memorandum from Hicks
Morley dated April 30, 2019 (copy attached).
Government (Municipal, Provincial and Federal) Funding
3.8 The Municipal operating grant covers approximately 73% of the Museum's annual
operating expenses. Approximately 93% of the Library's annual operating expenses are
funded by the Municipality.
3.9 The Library's annual Provincial grant (PLOG) is approximately $75,000 — 80,000
($78,320 in 2018).
3.10 The Museum has received an annual CMOG in the amount of $25,161 every year since
2006 with the exception of 2012 when it received nothing due to non-compliance with
the Standards.
3.11 One of the challenges in terms of a merger is the risk of losing the CMOGs. It may be
possible to avoid the loss of CMOGs through a board structure that has cross-
appointments to two separate but closely related boards. Another possibility would be to
establish the Museum "board" as a committee or subcommittee of the Library Board
(with separate meeting agendas, minutes and bank accounts). Other municipalities in
Ontario have created governance structures that have effectively allowed for a merged
approach while maintaining compliance with the Standards and preserving CMOGs.
3.12 Even if the provincial grant money is lost because of a governance change, the benefits
of restructuring may outweigh the loss of the CMOG. In other words, the efficiencies
achieved though combining the two business units under a single governance structure
may outweigh an annual loss of $25,161. The Municipality can operate a museum as it
sees fit— but if it is not done in accordance with the Standards, the CMOGs will not be
available.
3.13 Both the Library and the Museum receive special project funding from Federal grants
that cover wages for summer students. The Museum also receives federal funding for
special museum-related projects. These special project grants are designated only for
special projects and do not cover operating expenses. They are considered an "in and
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out" because if the funding is not received, there are no expenses related as the project
will not go forward.
Staffing
3.14 The Museum currently has a total staff complement of four full-time, one part-time and
eight occasional workers. One staff member is currently on maternity leave. Two of the
full time employees are non-union (Executive Director and Curator). One part-time
employee (archivist) is non-union. Two full-time employees (program coordinator and
clerk) and eight occasional workers (interpreters) are members of CUPE Local 74-03.
There were a total of approximately 50 volunteers in 2018. The Museum also uses
coop students — high school and college level. In 2018, the Museum employed six
summer students - three from Youth Canada Works (75% grant) and three from Canada
Summer Jobs (at 100%).
3.15 The Library currently has eight full time employees and six part-time employees who are
non-union and 42 members of CUPE Local 74-00. The Library also uses some coop
students and students through Young Canada Works.
3.16 At this point, staff have not identified any anticipated redundancies if a merger were to
proceed.
3.17 There could be pay equity implications if the two Boards merge because the
Municipality is considered the Library Employer for Pay Equity purposes. As such, there
is a likely impact related to absorbing the Museum employees into the Library
employment infrastructure. The process would require an evaluation of individual
positions in relationship to benchmarked positions within the Library Pay Equity
established Plan. These costs have not been fully explored, but our initial review
suggests that there would be a financial impact.
3.18 CUPE Local 74 includes three sub units under the one Local, with representation by the
same President who negotiates with the Municipality, Library and Museum for working
conditions related to each bargaining unit. Many of the conditions are patterned after
the Municipality's agreement with CUPE and as such there are many common working
conditions amongst the three units. The confidential memorandum from Hicks Morley
attached to this memorandum discusses the potential for the CUPE Collective
Agreements to be merged or remain independent governing documents until their
negotiated terms expire. If there is a merger, a new collective agreement would have to
be negotiated with CUPE, and ultimately may require approval from the Ontario Labour
Relations Board.
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Operational Impacts
3.19 Merger may allow for some efficiencies to be found in administrative expenses. For
example, the Museum could realize savings in accounting fees ($8,000) paid to an
external bookkeeper, printing and photocopying services, and the purchase of office
supplies.
3.20 Although the Museum and Library have similar Council-appointed Board governance
structures, the Museum does not have access to the same level of support from
Municipal departments. At the direction of Council, this could change following a
merger.
3.21 The Museum would benefit greatly by accessing the online volunteer training modules
that the Library utilizes for providing legislated training to their volunteers.
Policies
3.22 Both Boards have similar policies (e.g. governance, personnel, collections, financial) to
ensure consistency, equity and transparency. The Museum policies are still in the
process of being reviewed and updated, and a closer mirroring of the applicable
Municipal and Library policies would be beneficial to the Museum.
Collaborative Projects
3.23 Even without a merger, there are several collaborative projects that can be, and are
being, pursued. Examples include technology sharing (digitization project for
newspapers) and cross promotions (e.g. a new program to provide free access to all
museum sites with a library card).
4. Concurrence
Not Applicable
5. Conclusion
It is respectfully recommended that Council provide direction to staff respecting the
possible merger of the two Boards.
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6. Strategic Plan Application
Not applicable.
Submitted by:z
Andrew C. Allison, B. Comm, LL.B.
CAO
Staff Contact: Andrew Allison, CAO, 905-623-3379 Ext. 2002 or aallison@clarington.net
Attachments:
Attachment 1 - Letter from the VAC's Executive Director dated April 5, 2019
Attachment 2 - Confidential Memorandum from Hicks Morley dated April 30, 2019
The following is a list of the interested parties to be notified of Council's decision:
Clarington Library Board
Clarington Museum and Archives Board
Visual Arts Centre
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