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Report for City Council November 28_ 2006 meeting

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Report for City Council November 28_ 2006 meeting Powered By Docstoc
					                             2006CSW053
                              Attachment 1




      The City of Edmonton



          Support to the

Alberta Aviation Museum Association

Edmonton Aviation Heritage Society




                       November 2006
                       TABLE OF CONTENTS
Preface – Executive Summary

1.0   Introduction                                1
      1.1   Study Background                      1
      1.2   Purpose and Objectives                1
      1.3   Comparative Organization              2

2.0   Study Methodology                           2
      2.1   Project Planning                      2
      2.2   Current State Assessment              3
      2.3   Recommendations & Plans               4

3.0   Current State Assessment                    5
      3.1   Corporate Structure and Governance    5
      3.2   Facility Management                   6
      3.3   Collection                            8
      3.4   Displays                              9
      3.5   Library and Archives                  9
      3.6   Programming                          10
      3.7   Education                            10
      3.8   Marketing and Promotion              11
      3.9   Visitors                             11
      3.10 Admission Fees                        12
      3.11 Gift Shop                             12
      3.12 Food Services                         12
      3.13 Memberships                           13
      3.14 Membership Fees                       13
      3.15 Staffing                              13
      3.16 Volunteers                            14
      3.17 Donations                             15
      3.18 Public Funding                        16

4.0 Recommendations and Plans                    16
      4.1 Long Term Viability                    16
      4.2 Strategic Direction                    17
      4.3 Objectives and Strategies              18
      4.4 Functional Plans                       21

Appendix 1- Detailed Pro Forma Budget            28
Appendix 2- Comparative Aviation Museums         31
Appendix 3- Interviews and Focus Groups          37
Alberta Aviation Museum                             Edmonton Aviation Heritage Society



EXECUTIVE SUMMARY

STUDY BACKGROUND
The Alberta Aviation Museum Association has built an impressive collection of vintage
aircraft since 1993 when it relocated to Hangar 14. The museum has 32 aircraft on
display, making it the fifth largest collection in Canada. As well, there are another three
aircraft under restoration. The museum also has the largest aviation library and archives
in Western Canada. The 50 to 60 volunteers are very committed to the restoration,
preservation and display of the aircraft and other artifacts. In total, they contributed about
22,000 hours to the museum in 2005. The museum had about 15,000 paid admissions in
2005 including about 2500 grade six science students.

Hangar 14 is a provincial and national historical site that was built in 1942 for the British
Commonwealth Air Training Plan. The hangar is the only remaining double wide double
length hangar built in Canada. The hangar has become a community center for aviation
related associations. There are 13 active aviation membership organizations including
veterans, cadets and other member groups in the hangar. As well, the facility is utilized
for community events. The facility is managed by the Edmonton Aviation Heritage
Society with a separate board. While the city owns the facility, it has not historically
provided financial assistance to the museum or the society other than specific capital
projects. The City of Edmonton has contributed about 10% of the $2.4 million in
restorations and upgrades since 1993. The activities at the hangar generated an estimated
75,000 to 80,000 person visits in 2005.

STUDY METHODOLOGY
The project plan was designed in three phases. Phase 1 focused on project planning
while Phase 2 centered on the comprehensive assessment of the market, strategy and
business plan, finances, operations (e.g. collection and facility), volunteer management
and governance. Interviews were conducted with the leaders of the Alberta Aviation
Museum Association, the Edmonton Aviation Heritage Society, the City of Edmonton,
and other external stakeholders. As well, two focus groups were organized with the
membership of the society and the volunteers. Comparisons were made with other
museums in Alberta and elsewhere. (Aerospace Museum of Calgary, Reynolds Alberta,
Canadian Warplane Heritage Museum in Hamilton, and the New England Aviation
Museum near Hartford, Connecticut). Conclusions on the viability of the
association/society were made and recommendations for municipal support were
developed in Phase 3. As well, recommendations to enhance the strategy and business
plan, marketing plan, financial plan, artifacts and facility management, volunteer
management, and governance were made. The recommendations take into consideration
lessons learned from other aviation related museums in Alberta and elsewhere.

VIABILITY
The museum is an undiscovered gem in Edmonton with significant potential to be self
sufficient with three year operating support from the city. The support would assist the



1.                                                                                           i
Alberta Aviation Museum                                                        Edmonton Aviation Heritage Society


museum/society hire full time staff to enhance existing museum displays and educational
programming, invest in marketing and promotion, and establish fund development.
The museum and society have three full time staff, including an admissions/gift shop
manager, an office manager, and a newly hired executive director. The museum needs a
curator, a director of education, and a volunteer coordinator to achieve long term
viability. Some of the comparable museums had 50,000 to 65,000 paid visitors per year.
We project that with some interim operating assistance the museum’s paid admissions
could reach 40,000. Projected paid admissions would be less than 10% of the 500,000
visitors a year to the Telus World of Science.

A three year operating grant of $180,000 in 2007, $120,000 in 2008, and $20,000 in 2009
would allow the museum to achieve long term financial sustainability by 2010. The City
of Calgary has made a three year operating commitment of $100,000 to the Aero Space
Museum of Calgary. Both the Canadian Warplane Heritage Museum (Hamilton) and the
New England Aviation Museum are self sufficient.

Following is a summarized pro forma plan for the Alberta Aviation Museum Association
and the Edmonton Aviation Heritage Society. The assumptions and a more detailed pro
forma are included as Appendix 1.
Alberta Aviation Museum and Alberta Heritage Society*
Actuals and Budget (in $000)
                                                                2005                     2007   2008   2009   2010   2011
                                           EAHS         Aviation Museum        Total

Total Revenue                                     138                 110       248       304   388    511    641    762

Total Programming Expenses                        48                      77    125       365   387    405    430    434

Total Building Expenses                           96                      24    120       116   120    122    124    126

Total Expenses                                    144                 101       245       481   507    527    554    560

Net Income (Loss)                                                                 3      -177   -119    -16    87    202

Total Capital Expenditures                                                                                           604



STRATEGIC DIRECTION
The Alberta Aviation Museum Association/Edmonton Aviation Heritage Society has
developed a new strategic direction. The strategic direction incorporates the vision,
mission, values, and goals of the organization.

             VISION
             To be recognized as the leading aviation museum in Edmonton and Alberta

              VALUES
             The museum/society has a number of core values that reflects how it conducts its
             business and treats it employees, visitors, members, volunteers, donors, tenants,
             and the citizens of Edmonton. These values are:
                 Valued employees
                 Importance of volunteers to organizations future
                 Preservation of artifacts


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Alberta Aviation Museum                           Edmonton Aviation Heritage Society


             Quality of the visitor experience
             Partnerships with corporations, educational institutions, and other science
              and aviation museums
             Accountability to the taxpayers of Edmonton
             Fairness to tenants of Hangar 14
             Membership services

      MISSION
      The Alberta Aviation Museum/Edmonton Aviation Heritage Society preserves
      and promotes the appreciation of the aviation heritage of Edmonton and the
      North.

      Visitors: The visitors to the museum include families, students, veterans and
      military personnel, and other individuals. While some of the visitors may be
      aviation enthusiasts, the majority may have limited knowledge of aviation.

      Market: The primary market is the residents of Metro-Edmonton. Visitors to
      Edmonton from Alberta, Canada, and other countries are the secondary markets.

      Products and services: The museum collects aircraft and other artifacts
      appropriate to its mission; restores aircraft; maintains its building, airplanes and
      other artifacts and library collection; exhibits it collection; educates its visitors;
      rents facilities and equipment as appropriate; and operates a gift store.

      Collection: The artifacts include military and civilian aircraft, uniforms, aircraft
      parts such as engines, and personnel memorabilia relevant to the history of
      aviation in Edmonton and the North.

      GOALS
      The Alberta Aviation Museum Association/Edmonton Aviation Heritage Society
      has four goals:
           To educate residents of Metro Edmonton and other Albertans about
             Edmonton’s contribution to aviation
           To promote the understanding of the science and technology of aviation
           To protect and display Hangar 14, airplane collection and other artifacts
           To achieve financial sustainability

      OBJECTIVES
      The Alberta Aviation Museum Association/Edmonton Heritage Society has
      established long term objectives that are critical to the achievement of the
      organization’s goals. These long term objectives are:
           To grow the number of paid admissions and revenue
           To increase the number of members and membership revenue
           To manage the facility and public access to the museum efficiently
           To ensure the continuity of volunteers



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Alberta Aviation Museum                        Edmonton Aviation Heritage Society


            To develop a governance structure that ensures public accountability
            To enhance public awareness of the Alberta Aviation Museum
            To build the competencies of the museum staff and ensure their health and
             welfare
            To expand the educational programs
            To enhance the visitor experience
            To increase annual donations and other support

      STRATEGIES
      The Alberta Aviation Museum/Edmonton Heritage Society has developed
      strategies to achieve its long term objectives. These strategies are:
            Expand the educational programs to include K-6 through partnership
            Market the corporate membership program
            Increase the prices for admissions and memberships
            Enhance the display of exhibits
            Enhance museum programming
            Enhance the communication and marketing program
            Establish one governing entity for the Alberta Aviation Museum
               Association and the Edmonton Aviation Heritage Society
            Hire core additional full/part time staff
            Formalize the volunteer program
            Establish a fund development program
           




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Alberta Aviation Museum                              Edmonton Aviation Heritage Society



1.0 INTRODUCTION


1.1 STUDY BACKGROUND
The Alberta Aviation Museum Association has a large collection of vintage aircraft.
According to the executive director, the association has the fifth largest collection in
Canada with about 15,000 paid admissions per year. Many volunteers supporting the
aviation museum are aging. The collection of is housed in hangar 14 near the Edmonton
City Airport. The hangar, a municipal and provincial heritage building, has space for
displays, a workshop for restoration, a large hall, and a gift shop. About 13 active aviation
related membership organizations, including veterans, cadets and other member groups use
the hall. As well, the facility is utilized for community events. The facility is managed by
the Edmonton Aviation Heritage Society with a separate board. The museum is rapidly
running out of space and has aircraft outside behind the building. While the city owns the
facility, it has not historically provided financial assistance to the museum or the society
other than specific capital projects


1.2 PURPOSE AND OBJECTIVES
The purpose of the study is to support the Alberta Aviation Museum Association and the
Edmonton Aviation Heritage Society. The support will involve an opportunity assessment
and development of a plan for both the association and society with recommendations with
respect to the sustainability of the organizations. The study objectives are:
        to assess the market and make recommendations to enhance the marketing plan of
         the association
        to evaluate the collection, condition and restoration, and display of artifacts and
         make recommendations for improvements
        to evaluate volunteer management and develop a plan to replace aging volunteers
        to evaluate the future of the facility, given its age and condition
        to assess the financial viability of the museum and society and make financial
         projections



2.                                                                                        1
Alberta Aviation Museum                           Edmonton Aviation Heritage Society


      to evaluate the governance of the association and society, and make
       recommendations to enhance governance structure and processes
      to support the City of Edmonton in their consideration of the future sustainability of
       the museum and the level of operational support required


1.3 COMPARATIVE ORGANIZATIONS
The assessment was conducted considering the market for aviation museums and best
practices for their governance and management. With the input of the steering committee,
we selected several Alberta aviation museums for comparison as well as two located in
other parts of Canada and the U.S. We compared their collections and facilities, volunteer
management, marketing, finances, and governance. In Alberta, the Aerospace Museum of
Calgary and the Reynolds Alberta Museum were selected for comparison. The Canadian
Warplane Heritage Museum in Hamilton and the New England Aviation Museum near
Hartford, Connecticut were selected as well.


2.0 STUDY METHODOLOGY
The project plan was designed in three phases. Phase 1 focused on project planning while
Phase 2 centered on the comprehensive assessment of the market, strategy and business
plan, finances, operations (e.g. collection and facility), volunteer management and
governance. Conclusions on their viability and recommendations for municipal support to
the museum and society were developed in Phase 3. As well, recommendations to enhance
the strategy and business plan, marketing plan, financial plan, artifacts and facility
management, volunteer management, and governance were made. The recommendations
take into consideration lessons learned from other aviation related museums in Alberta and
elsewhere.


PHASE 1:      PROJECT PLANNING

The detailed project plan was developed in Phase 1. The tasks in Phase 1 included:
      Initial meeting with the steering committee to understand the history of the
       museum and society, to identify background documents and key stakeholders, and
       to make any necessary adjustments in the work plan


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Alberta Aviation Museum                           Edmonton Aviation Heritage Society


      Background document review including the website, business plan, marketing plan,
       by-laws of the association and society, board minutes, financial statements, facility
       assessment, and inventory of artifacts
      Review of the web sites of aviation museums to identify emerging trends and to
       develop a short list of aviation museums for comparison.
      Initial interviews with key individuals including the executive director, chair of the
       Alberta Aviation Museum Association, chair of the Edmonton Aviation Heritage
       Society, and municipal officials
      Interviews with key stakeholders such as the Kingsway Business Association,
       Edmonton Airports, NAIT (avionics), Alberta Museums Association, and the Telus
       World of Science.
      Identification of key issues related to the review such as lack of space, aging
       volunteers, rising visitor expectations, and dual reporting relationship of the
       executive director
      Detailed project plan for the assessment and plan review including guidelines for
       focus groups with volunteers and society members and the format for collecting
       information on comparable museums.


PHASE 2:       CURRENT STATE ASSESSMENT

The current state assessment focused on identifying the strengths/weaknesses of the
existing operations and plans.     Comparisons were made with other aviation related
museums in Alberta and Canada. The tasks in Phase 2 include:
      Market assessment including target markets; visitor trends and profiles; visitor
       expectations and ratings; services; promotion and communication; and pricing
      Review of artifact inventory and management including the number, type, and
       condition of aircraft; restoration activities; related artifacts such as memorabilia;
       and displays
      Financial analysis including admissions and memberships, gift shop revenue,
       donations and grants, and expenses




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Alberta Aviation Museum                              Edmonton Aviation Heritage Society


      Review of facility management including a tour, discussion of the facility review
       with the city, a focus group (1 hour) with society members, and comparisons of the
       space, features, and maintenance with other aviation museums
      Review of volunteer management including the recruitment, training, scheduling,
       and recognition of volunteers. Twenty-two volunteers attended the focus group (1
       hour) session.
      Governance review including the dual reporting of the executive director and the
       relationship of the two societies that are interrelated
      Preparation of the Phase 2 report on the current state assessment identifying
       strengths/weaknesses     of   current      plans   and    operations.   As   well,   any
       barriers/constraints to realizing the opportunities were identified. The Phase 2
       report was reviewed with the Steering Committee and their comments/suggestions
       were incorporated into the final report.


PHASE 3:      RECOMMENDATIONS & PLANS

The long term viability of the museum and the society were assessed and recommendations
were developed with respect to financial support from the City of Edmonton. As well,
recommendations were made with respect to the strategy and business plan and supporting
functional plans of the association and society. The functional plans include governance,
marketing, facility management, human resources, volunteer management, museum
management, and finance. The tasks in Phase 3 included:
      Viability assessment including market potential with five year financial projections
      Strategic planning workshop to develop the vision, mission, values and goals for
       the museum and the society
      Identification and evaluation of strategic options. Strategic options were identified
       based on the assessment, stakeholder input, and comparisons with other aviation
       museums.
      Development of the strategy and business plan and supporting functional plans
      Recommendations with respect to support from the City of Edmonton considering
       the long term viability and City of Edmonton polices



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Alberta Aviation Museum                           Edmonton Aviation Heritage Society


      Preparation of the draft report, including the recommendations and strategy. The
       report contained the identification and evaluation of options for enhancing the
       viability of the museum and society, and recommendations with respect to
       governance and financial support from the City of Edmonton. The rationale for any
       enhancements and recommendations were identified.
      Final report. The draft report was reviewed with the steering committee and their
       comments / suggestions were incorporated into the final report. As well, the power
       point presentation, appropriate for presentations to city council, was developed.


3.0 CURRENT STATE ASSESSMENT
The current state assessment was conducted considering various dimensions of museum
operations and management: governance; facility management; museum management;
marketing; staffing; volunteer management; and fund development.


3.1 CORPORATE STRUCTURE AND GOVERNANCE
The Edmonton Aviation Heritage Society and the Alberta Aviation Museum Association
are two distinct not-for-profit societies. The Edmonton Aviation Heritage Society has the
long term lease with the City of Edmonton for Hangar 14 at the municipal airport. The
society is governed by a 22 member board with each of members having at least one
member serving on the board. The society has experienced difficulty recruiting members to
the board and maintaining quorums at meetings.


The larger members of the society such as the Alberta Aviation Museum can appoint two
members to the board of the Edmonton Aviation Heritage Society. The museum has only
two directors on the society board even though it occupies over 2/3 of the space. There
have been conflicts between the strategic direction of the society and the museum in the
past. When the society was established, the museum only utilized 10% of the space.
Currently, the museum uses over 67% of the space in hangar 14.




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Alberta Aviation Museum                           Edmonton Aviation Heritage Society


The Alberta Aviation Museums Association has a 12 member board that is elected from
among membership. As well, the association has numerous committees involved in the
management of the museum.


Recently, the Edmonton Aviation Society and the Alberta Aviation Museum established a
business group to manage the day to day operations of the hangar and the museum. The
business group is composed of the president and treasurer of each organization, an
independent chair, and the executive director. The executive director with responsibility
for marketing and fund raising for the society and the association was recently hired.
The executive director has a contract with both the society and the association and reports
to the business group. The formation of the business group has helped to resolve the
previous conflicts between the two boards and member organizations and is viewed as the
first step in the creation of a unified governance structure. The current governance
structure is confusing especially to external stakeholders. As well, the number of decision
making units is not conducive to clearly defining responsibilities and accountability
reporting.


Compared with other aviation museums, the governance structure of the society and the
museums is complex and cumbersome. The other museums have a unified governance
structure and operate without executive committees.        The museum boards have also
appointed executive directors to whom they have delegated overall management of the
museum.


3.2 FACILITY MANAGEMENT
The Alberta Aviation Museum and the other members of the Edmonton Aviation Heritage
Society are housed in Hangar 14 at the Edmonton Municipal Airport. The hangar was built
in 1942 for the British Commonwealth Air Training Plan. It was one of the largest air
training facilities and was double the width and length of comparable facilities in Canada.
The hanger has 84,000 square feet of space. Hangar 14 is a designated Alberta and
Canadian historical site. The City of Edmonton owns the hangar and has contributed about
10% of the $2.4 million invested in upgrading in the facility since 1993. The Government


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Alberta Aviation Museum                           Edmonton Aviation Heritage Society


of Alberta as well as other organizations has also contributed to the restoration of the
building and improvement of the grounds.


The Alberta Aviation Museum is the major tenant in the hangar with over 2/3 of the space.
There are fifteen other aviation related not-for-profits societies located in the hanger.
However, may of these organizations are or will be experiencing a decline in membership
as many of the members of the organizations are veterans. The only organizations that are
stable or are increasing membership are the air cadets, army cadets, and the Canadian Air
Search and Rescue Association (CASARA).


The Edmonton Aviation Heritage Society also rents the auditorium and other space with
the hangar to outside groups. The revenues from rentals were $43000 in 2005, above
comparable aviation museums except for the Canadian Warplane Heritage Museum. The
hangar is better located that most aviation museums. Hangar 14 is located at the Municipal
Airport near the downtown Edmonton while most aviation museums are located at
international airports. The Canadian Warplane Heritage Museum is a new facility that is
rented out for weddings, birthdays, corporate functions and special events. Facility rentals
and catering revenue exceeds $400,000 per year.


The Asset Management Department of the City of Edmonton has recently conducted an
assessment of the facility and has identified preventative maintenance requirements and
capital improvements that will be needed over the next five years. Preventive maintenance
of $90,000 per year will be required. If the maintenance committee completes some of the
work, the costs may be somewhat lower. Capital improvements of $674,000 have been
identified. The major costs relate to the replacement of the HVAC system and wiring
upgrades. The capital improvements will be needed toward the end of the five year period.


The comparable museums have 20,000 to 100,000 square feet of exhibit space. Except for
the Canadian Warplane Heritage Museum, the museums are housed in refurbished hangars
and training facilities. Some have erected temporary buildings to protect their collections.
As well, most museums have moved their restoration department, and in some cases, the


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Alberta Aviation Museum                            Edmonton Aviation Heritage Society


archives offsite in order to expand their exhibit space. The Canadian Warplane Heritage
Museum in Hamilton had a fire in 1993 and invested almost $12 million in a purpose built
facility to replace its hangar.


3.3 COLLECTION
The Alberta Aviation Museum has built an impressive collection since moving to its
present location in 1993. The museum has 32 aircraft on display with three aircraft under
restoration (excluding the Ventura). As well, the museum has one aircraft in offsite
storage. It also has been offered an aircraft on which it must make a decision. The Alberta
Aviation Museum has the fifth largest collection of aircraft in Canada. The Canadian
Aviation Museum, one of the national science museums, has the largest collection
followed by the Canadian Warplane Heritage Museum and the Reynolds Museum.


The collection of the Alberta Aviation Museum consists of military aircraft from World
War I and World War II, as well as an historic collection of civil aircraft. The civil aviation
collection includes early planes used by bush pilots as well as a Boeing 737 donated by Air
Canada. The 737 has advanced avionics and is used for emergency training by the RCPM
and the Edmonton Police Service and the avionics students at NAIT. While the collection
is focused on aircraft important to Edmonton, Alberta and Western Canada, there is no
collection policy. In addition, the donation of one airplane has not been formalized.


Over the last decade, the volunteers have restored many wood and fabric aircraft. The
Alberta Aviation Museum has benefited from the expertise of its volunteers. Few
comparable museums have as much expertise in the restoration of wood and fabric planes.
Given the age of the members of the restoration committee, expertise in wood and fabric
will be a diminishing competency. Recent donations are primarily metal aircraft and the
members of the restoration committee have limited expertise in sheet metal.


Some of the aviation museums also have collections of radio equipment, aircraft engines,
uniforms, and personal memorabilia. Except for the collection of 20 aircraft engines, most




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Alberta Aviation Museum                             Edmonton Aviation Heritage Society


of the exhibits in the Alberta Aviation Museum relate to the aircraft. There is no radio
room and few uniforms or memorabilia.


3.4 DISPLAYS
There are 32 aircraft on display at the Alberta Aviation Museum. While the collection of
aircraft and the restoration of those aircraft is impressive, the collection is poorly displayed
compared with some other museums. Many visitors to aviation museums are not aircraft
enthusiasts and may not be familiar with the science or technology. Unlike many aviation
museums, there is no introduction to the science of flight in the Alberta Aviation Museum.
While the majority of aviation museums organize their collection around themes, there is
no evidence of its application to the displays in the Alberta Aviation Museum. The Aero
Space Museum in Calgary, for example, organizes its collection around four themes: trail
blazers, pioneers, heroes, and adventurers. Another common practice-easy to read story
boards-has not been introduced. Most museums also have audio tours or interactive
exhibits with audio and video clips. While the Alberta Aviation Museum has some
interactive video exhibits, it does not have an audio tour. The exhibits at the Alberta
Aviation Museum are permanently on display with no rotation of exhibits. Comparable
museums attempt to have a new exhibit every three to four months using artifacts from
their collections. The museums selected for benchmarking also have both static and fully
operational flight simulators in their exhibit halls. The Alberta Aviation Museum has three
vintage flight simulators.


3.5 LIBRARY AND ARCHIVES
The Alberta Aviation Museum has one of the largest reference libraries in Western
Canada. It has a collection of over 4000 books, 6000 periodicals, 1000 technical manuals,
and 20,000 photographs. The collection is currently being catalogued. The archive is not
housed under environmentally controlled conditions.


The comparable aviation museums have libraries and archives. Often the archives are
housed in the library. The libraries and archives are normally staffed by volunteers under
the direction of the curator. The New England Aviation Museums has the largest library


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Alberta Aviation Museum                            Edmonton Aviation Heritage Society


and archives with over 20,000 books, 97,000 periodicals, 5000 technical manuals, 21,000
photographs, and 1000 audiovisuals, and thousands of personal papers. All of the museums
have or are working towards an electronic catalogues. As well, the archives are
environmentally controlled.


3.6 PROGAMMING
The programs of the Alberta Aviation Museum are very narrow, compared with the other
museums studied. The programming consists of three events (Air Fest, Remembrance Day,
and the Battle of Britain), educational programming for grade 6 only, and tours. In
comparison, the leading aviation museums have extensive programming. Events include
open cockpit days, aircraft ride days, modeling workshops, scouting events and scavenger
hunts. As well, their educational programs are extensive. Other programming and services
include aviation movie nights, speakers, artist/writer in residence, and hands on activities
for kids. As well, their web sites provide additional information on the aircraft and the
aviation pioneers to interested visitors.




3.7 EDUCATION
The Alberta Aviation Museum developed a grade 6 program to teach students the theory of
flight. About 2500-3000 students complete the program each year. The course is taught
primarily by retired pilots.


The comparable museums have extensive education programs. All of them have an
education director. Their educational programs generally include social studies and science
programming for K-6 as well and junior high/middle schools. The programs are integrated
into the curriculum and cover such topics as the theory of flight, air craft design, pioneers
in aviation, engines, forces, and properties of materials. Many of the programs include
hands on activities. Some have pre-visit educational materials that are available to teachers.
The museums have established educational partnerships with corporations that fund the
educational programs. The New England Aviation Museum also has a summer program.
The Canadian Warplane Heritage Museum and the New England Aviation Museum


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Alberta Aviation Museum                           Edmonton Aviation Heritage Society


provide educational programming to about 12,000 and 20,000 students respectively per
year. The New England Aviation Museum receives over $175,000 U.S. from corporations
to support its educational program.


3.8 MARKETING AND PROMOTION
Compared with other museums, the Alberta Aviation Museum does not have the
programming nor has it been well promoted. The museum is visible from Kingway
Avenue, a major arterial. However, many people likely have driven by not even realizing
that the museum existed. The signage on the building was not put up until the summer of
2006. In What’s on in Edmonton, the Alberta Aviation Museum is listed under museums
instead of under attractions where the Telus World of Science is listed. All of the other
listings under museums are for art galleries. While museum brochures have been
distributed to Edmonton Visitor Information Centers, the museum is not profiled on the
Edmonton Tourism web site. However, special events have been well advertised and
received good media attention. The Alberta Aviation Museums does not have any
partnerships with other science or aviation museums for cross promotion.
The comparable museums have a more extensive marketing and communication programs.
The programs include: brochures distributed at tourism booths; displays at airports and
other high traffic locations; audio visual presentations to outside groups; contests such as
aviation art or a sponsored trip to Cape Canaveral; high profile dinners; and gift shop items
such as books and other publications, posters, mugs and shirts. These museums generally
have established partnerships with science and other aviation museums for cross
promotions.


3.9 VISITORS
There is significant community use of the facility by the cadets, other tenants and rentals.
Attendance at special events such as Air Fest, the Battle of Britain and Remembrance Day
celebrations is as many as 15-20,000 additional visits per year. The cadets and other
tenants account for 25-30,000 visitations per year. In total, the usage of the facility is as
many as 75-80,000 person visits per year.




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Alberta Aviation Museum                          Edmonton Aviation Heritage Society


The Alberta Aviation Museum has the fewest paid admissions of the museums studied. It
has an estimated 15,000 paid admissions. The Aero Space Museum has about 25,000
annual visitors while the Reynolds Museum, the Canadian Warplane Aviation Museum,
and the New England Aviation Museum have 50,000 to 65,000 visitors annually. The
Telus World of Science in Edmonton has about 500,000 visitors a year. Some of the visitor
numbers may be inflated by volunteers or event attendance. Some museums are installing
technology to obtain more accurate counts.


3.10 ADMISSION FEES
The average revenue per visitor is low at the Alberta Aviation Museum. The entrance fee
for individuals is $7 compared with $7 to $11 at comparable museums. As well, the
museum provides much larger discounts for seniors and students than other museums. As
well, at special events such as Air Fest, the entrance fee was only $2. Admission revenues
at the Alberta Aviation Museum were $54,732 in 2005, which is approximately $3.60 per
visitor. Admission revenues at the Canadian Warplane Heritage Museum and the New
England Aviation Museum are about $275,000 to $300,000. At the New England Aviation
Museum admissions accounts for 25% to 30% of total revenue.


3.11 GIFT SHOP
The Alberta Aviation Museum and its comparables all have a gift shop. The gift shop is
normally located outside the entrance so that the public can buy gifts without paying the
entrance fee. In 2005, the gift shop revenue was $77,000. However, with the allocation of
the admissions/gift manager to the gift shop, it only broke even. While the revenues were
greater than the Aero Space Museum, gift shop receipts were below those of the other
comparable museums. Some of the other museums had revenues in the $180,000 to
$400,000 range. The gift shop is frequently staffed with volunteers achieving margins of
25% to 50%. Some aviation museums have their gift shops on line.


3.12 FOOD SERVICES
The Alberta Aviation Museum has a coffee shop with access by staff and volunteers only.
Museum visitors expect food services at aviation and other science museums. Many of the


                                                                                      12
Alberta Aviation Museum                          Edmonton Aviation Heritage Society


comparable museums have a café or small dining area. As well, they often have a picnic
area and arrange for food vendors at major events. While it would be too expensive to
renovate the existing kitchen for food service, automatic vending machines may be an
option. Kingway Avenue with its many restaurants and the food services court at Kingway
Mall provide an alternative for visitors.


3.13 MEMBERSHIPS
The Alberta Aviation Museum has fewer members than the comparable aviation museums.
The association has an estimated 225 members. Some of the comparable museums have as
many as 1000 to 2000 regular members. The Canadian Warplane Heritage Museum also
has special memberships associated with a particular warplane. As well, the Aero Space
Museum and the New England Aviation Museum have corporate memberships as well as
family and individual memberships.          The Alberta Aviation Museum has recently
established additional membership categories including life, crew, and corporate
memberships that will help to build overall museum membership. The member
organizations of the Edmonton Aviation Heritage Society have an estimated 1000 adult
members and 1500 adult and youth members.


3.14 MEMBERSHIP FEES
The memberships to the Alberta Aviation Museum are very inexpensive relative to the
other aviation museums. A family membership is $35 compared with $40 in Calgary, $60
U.S. in New England, and $150 in Hamilton.


Memberships contributed $4478 or about 2.5% of revenue to the Alberta Aviation
Museum. The Canadian Warplane Heritage Museum has the largest membership with
revenues of $300,000 followed by the New England Aviation Museum with revenues of
$100,000. Memberships account for about 10% of revenues at the comparable museums
Members are also one of the largest sources of donations to aviation museums.


3.15 STAFFING




                                                                                   13
Alberta Aviation Museum                              Edmonton Aviation Heritage Society


The staffing of the aviation museums varies significantly. The Alberta Aviation Museum
has the smallest staff. In 2006, the museum hired an executive director with financial
support from the City of Edmonton. The recently appointed executive director is expected
to focus on marketing and fund raising. There is also an admissions/gift shop manager, an
archivist, and an office manager. Comparable museums have six to 30 full time
equivalents. The key positions include an executive director, a curator, an education
director, a volunteer coordinator, a fund development officer, an admissions/gift shop
manager, and administrative/office manager. Larger museums also may have an archivist,
librarian, marketing manager, and a communications officer. Museum staff is normally a
mix of part time and full time staff. Maintenance is normally contracted out.


3.16 VOLUNTEERS
Volunteers are critical to the success of aviation museums. The Alberta Aviation Museum
has core group of 50 to 60 volunteers who are primarily senior citizens. The volunteers
donated about 22,000 hour to museum activities and programming. The number of
volunteers by committee is found in the table below.


                   Committee                   Number of Volunteers
                   Restoration                 20-23
                   Display                     4-6
                   Education                   8
                   Tour guides                 6-10
                   Library                     5-6
                   Archives                    2
                   Coffee shop                 3
                   Maintenance                 4-5


While restoration is the largest group, many of its members have expertise in the
restoration of wood and fabric aircraft. Future restoration projects will likely focus on
metal aircraft. Additional volunteers are needed in the archives, the gift shop, and displays.
As the archives and the gift shop are staffed, potential volunteers may not be aware of the


                                                                                         14
Alberta Aviation Museum                             Edmonton Aviation Heritage Society


opportunities to contribute in these areas. Members of the Edmonton Aviation Historical
Society, especially the cadets, volunteer at special events. The Edmonton Aviation
Historical Society has an estimated 150 to 180 regular volunteers.


The volunteer program at the Alberta Aviation Museum is informal in its nature.
Volunteers are recruited through friends and word of mouth. As well, there is volunteer
form at the entrance. However, association does not always follow up on the volunteer
applications. The volunteers are aging as many are veterans. The Alberta Aviation
Museum will need to build relationships with organizations such as L3 (successor to Spar
Aviation) and other aviation companies, the NAIT avionics program, and the Cold Lake
Air Base to maintain its volunteer base. Many museums expect that volunteer recruitment
and retention of the next generation of volunteers may be especially challenging.


The communication channels with volunteers include the newsletter, email, bulletin board
notices, and informal discussions in the kitchen. Volunteer appreciation includes an annual
dinner, profiles in the newsletter, naming of artifacts, and certificates of appreciation.


Comparable museums have formal volunteer program frequently staffed by a volunteer
coordinator. Many foundations, such as the Wild Rose Foundation, provide funding for
volunteer coordinators. While the Alberta Aviation Museum has fewer volunteers that the
museums studied, its total volunteer hours are impressive. Some of these museums have
several hundred regular volunteers. As well, the comparable aviation museums have a
more diverse group of volunteers and are less reliant on senior citizens.


3.17 DONATIONS


The Alberta Aviation Museum/Edmonton Aviation Heritage Society receives few
donations compared with the other museums. Its main source of funding is its casinos.
Both the association and the society organize casinos. The comparable museums have two
major sources of funding including membership donations and educational partnerships.
The New England Aviation Museum and the Canadian Warplane Heritage Museum


                                                                                             15
Alberta Aviation Museum                           Edmonton Aviation Heritage Society


receive donations of $200,000 and $1,000,000 respectively from their membership.
Educational partnerships can fund up to $175,000 per year and cover all the direct and
indirect costs of the educational program.


3.18 PUBLIC FUNDING
Many aviation museums receive almost no operational funding from public sources. The
Canadian Warplane Heritage Museum is not subject to property tax by the City of
Hamilton. The New England Aviation Museum receives funding from the State of
Connecticut for its summer programs as well as funding from the Hartford Arts Council.
The Aerospace Museum normally receives support from all three levels of government.
The City of Calgary has committed $100,000 per year in operational funding. Through
Alberta government programs, the aviation museum in Calgary expects to receive
$100,000. Normally, the museum also is supported by $50,000 in grants from the
Government of Canada. However, the Aero Space Museum was unsuccessful in its 2006
application for federal support. The Reynolds Museum is operated directly by Community
Development and is funded primarily by the Government of Alberta. The ‘Friends’
organization is able to apply for grants and enter into community partnerships to
supplement the programming at Reynolds. The Aviation Hall of Fame, which is associated
with the Reynolds, also has corporate partners that provide financial support.


4.0 RECOMMENDATIONS AND PLANS
The long term viability of the museum and the society were assessed and recommendations
were developed with respect to financial support from the City of Edmonton. As well,
recommendations were made with respect to the strategic direction, long term objectives
and strategies and supporting functional plans of the association and society. The
functional plans include the governance, marketing, facility management, human resources
and volunteer management, and museum operations.


4.1 LONG TERM VIABILITY
The Alberta Aviation Museum/Edmonton Aviation Heritage Society has the potential to
achieve long term sustainability. The Alberta Aviation Museum/Edmonton Heritage


                                                                                    16
Alberta Aviation Museum                              Edmonton Aviation Heritage Society


Society will need interim financial assistance for staffing, marketing, and new displays, as
well as building improvements from the City of Edmonton. Both the Canadian Warplane
Heritage Museum and the New England Aviation Museum are self sufficient. The financial
projections show that the museum can become self sustaining within five years. We
recommend that the City Of Edmonton provide $180,000 and $120,000 in operating grants
for 2007 and 2008, respectively. We would also recommend that the City consider
assuming responsibility for the capital costs of the hangar to ensure that the building is
maintained to a standard that is appropriate for a public facility and a designated historic
site.


4.2 STRATEGIC DIRECTION
The Alberta Aviation Museum/Edmonton Aviation Heritage Society has developed a new
strategic direction. The strategic direction incorporates the vision, mission, values, and
goals of the organization.


        VISION
        To be recognized as the leading aviation museum in Edmonton and Alberta


        VALUES

        The museum/society has a number of core values that reflects how it conducts its
        business and treats it employees, visitors, members, volunteers, donors, tenants,
        and the citizens of Edmonton. These values are:
                Valued employees
                Importance of volunteers to organizations future
                Preservation of artifacts
                Quality of the visitor experience
                Partnerships with corporations, educational institutions, and other science
                 and aviation museums
                Accountability to the taxpayers of Edmonton
                Fairness to tenants of Hangar 14
                Membership services


                                                                                        17
Alberta Aviation Museum                             Edmonton Aviation Heritage Society




      MISSION

      The Alberta Aviation Museum/Edmonton Aviation Heritage Society preserves and
      promotes the appreciation of the aviation heritage of Edmonton and the North.


      Visitors: The visitors to the museum include families, students, veterans and
      military personnel, and other individuals. While some of the visitors may be
      aviation enthusiasts, the majority may have limited knowledge of aviation.
      Market: The primary market is the residents of Metro-Edmonton. Visitors to
      Edmonton from Alberta, Canada, and other countries are the secondary markets.


      Products and services: The museum collects aircraft and other artifacts appropriate
      to its mission; restores aircraft; maintains its building, airplanes and other artifacts
      and library collection; exhibits it collection; educates its visitors; rents facilities and
      equipment as appropriate; and operates a gift store.


      Collection: The artifacts include military and civilian aircraft, uniforms, aircraft
      parts such as engines, and personnel memorabilia relevant to the history of aviation
      in Edmonton and the North.


      GOALS

      The Alberta Aviation Museum/Edmonton Aviation Heritage Society has four goals:
             To educate residents of Metro Edmonton and other Albertans about
              Edmonton’s contribution to aviation
             To promote the understanding of the science and technology of aviation
             To protect and display Hangar 14, the airplane collection and other artifacts
             To achieve financial sustainability


4.3 OBJECTIVES AND STRATEGIES


      4.3.1 OBJECTIVES


                                                                                            18
Alberta Aviation Museum                           Edmonton Aviation Heritage Society


      The Alberta Aviation Museum/Edmonton Heritage Society has established long
      term objectives that are critical to the achievement of the organizations goals.
      These long term objectives are:
            To grow the number of paid admissions and revenue
            To increase the number of members and membership revenue
            To manage the facility and public access to the museum efficiently
            To ensure the continuity of volunteers
            To develop a governance structure that ensures public accountability
            To enhance public awareness of the Alberta Aviation Museum
            To build the competencies of the museum staff and ensure their health and
             welfare
            To expand the educational programs
            To enhance the visitor experience
            To increase annual donations and other support


      4.3.2 STRATEGIES
      The Alberta Aviation Museum/Edmonton Heritage Society has developed
      strategies to achieve its term objectives. These strategies are:


            Expand the educational program to include K-6 through partnerships.
             Educational program are key to the success of aviation museums. The
             museum should develop teacher material and programming that supports
             the social and science curriculum of kindergarten to grade 6. Educational
             programming is the key to corporate partnerships and donations. In the
             longer term, the Alberta Aviation Museum should evaluate the advantages
             and disadvantages of expanding the programming to junior high and
             possibly high school.


            Market the corporate membership program. The Alberta Aviation
             Museum has recently established a corporate membership program. The



                                                                                         19
Alberta Aviation Museum                           Edmonton Aviation Heritage Society


             museum should target 40 to 50 corporate memberships with membership
             fees of $250 to $1000 each. The benefits of memberships should be linked
             to the fee. The Alberta Aviation Museum should target Edmonton head
             offices, major Alberta corporations, and aviation related businesses.


            Increase the prices for admissions and memberships. The annual
             membership fees should increased from $35 to $50 over the next five years.
             The admission prices should be raised over the next five years to be
             comparable with other aviation museums. The discounts for seniors and
             students should be reduced. Normal admission prices should be charged at
             events.


            Enhance display of exhibits. The Alberta Aviation Museum needs to
             enhance its displays to improve the visitor experience. On the aviation
             museum locator website, the Alberta Aviation Museum only had a three and
             a half star rating out of five stars. Some of the comparable museums had a
             four or four and a half star ratings out of five.


            Enhance programming. Programming is critical to increasing the number
             of visitors and memberships. Compared with other museums the Alberta
             Aviation Museum has limited programming with only three annual events.


            Enhance      the   communications        and        marketing   program.   The
             communications and marketing program needs to be enhanced to support
             growth in admissions, memberships, and donations.


            Establish one governing entity for Edmonton Aviation Heritage Society
             and the Alberta Aviation Museum. A unified governance structure will
             need to be enhanced in order for the museum to qualify for municipal
             operating support and to be successful in fund raising. The existence of two
             organizations is confusing to external stakeholders. As well, the existing


                                                                                        20
Alberta Aviation Museum                          Edmonton Aviation Heritage Society


              structure with two societies, the creation of a business group, and the
              executive director under contract with both societies is incompatible with
              the best governance practices of not-for- profit organizations.


             Hire core additional full/part time staff. The Alberta Aviation Museum
              will not be able to move to the next level of maturity without a core group
              of full and part time staff. The museum needs an education director, a
              curator, and a volunteer coordinator.


             Formalize the volunteer program. With the recruitment of a volunteer
              coordinator, the Alberta Aviation Museum can formalize its volunteer
              program. The volunteer program needs to focus on succession planning for
              the current volunteers who are aging.


             Establish a fund development program. Aviation museums depend upon
              donations for their ongoing operations. The Alberta Aviation Museum
              needs to establish a formal fund development program. Comparable
              museums have found that their individual and corporate members are their
              largest source of donations. Corporations prefer to donate to educational
              programming. Some foundations such as the Wild Rose Foundation will
              support the recruitment of volunteer coordinators.


4.4 FUNCTIONAL PLANS
The functional plans include the governance, marketing, facility management, human
resources, volunteer management, museum management, and financial management.


      4.4.1 GOVERNANCE
      The Alberta Aviation Museum Association and the Edmonton Aviation Heritage
      Society need a new governance structure. The new governing entity could be built
      upon the business group. The Legal Department of the City of Edmonton will need
      to work with the association and the society as the rental agreement for hangar 14,


                                                                                     21
Alberta Aviation Museum                          Edmonton Aviation Heritage Society


      is between the City of Edmonton and the Edmonton Aviation Heritage Society. The
      board members should be selected for the experience and competencies rather than
      membership or representation of a specific group. The board will need to seek
      expertise in facility management/engineering, marketing, fund development,
      museum management, education, and financial management. The board should not
      be so large that an executive committee is required. Not-for profit boards require an
      audit committee at a minimum made up of board members with significant
      financial expertise. Most not-for-profit boards also have governance and
      compensation committees. An advisory committee made up of the members of the
      society other than the museum should be established. The day to day management
      of the organization should be delegated to the executive director.


      4.4.2 MARKETING
      The recently appointed executive director is responsible for marketing. He has
      already taken some initiatives to enhance the marketing and communications
      program and has established partnerships with Global TV for promotion and
      coverage of key events. As well, the executive director has met with Tourism
      Edmonton and made arrangements to profile the Alberta Aviation Museum on
      website in 2007. The Aviation Museum has an existing brochure promoting ‘The
      Hanger on Kingsway.’ The Alberta Aviation Museum needs a new visual image. A
      new brochure incorporating the new image should be developed and distributed
      through the Telus World of Science, the Royal Alberta Museum, and Edmonton
      visitor information centers. The museum should be advertised under attractions in
      What’s on in Edmonton. As well, the gift store should have posters and other items
      with the new image.


      To support the growth of the educational program, a marketing program focused on
      teachers will be needed. The marketing program should consider direct marketing
      to teachers, presentations at schools, sponsorship of the school science fairs, and
      booths at teacher conventions. Testimonials from grade six teachers may be useful.




                                                                                      22
Alberta Aviation Museum                           Edmonton Aviation Heritage Society


      4.4.3 FACILITY MANAGEMENT
      Volunteers have been active in the maintenance of hangar and planning of building
      improvements. The maintenance committee believes that they can complete some
      of the deferred maintenance that the city has identified in its recent assessment of
      the facility. It was estimated that with the utilization of volunteers that they can
      reduced the deferred maintenance cost from $95,000 to $25,000 per year. Capital
      improvements of $674,000 have been identified. However, the estimate does not
      include the cost of an environmentally controlled space for the archives.
      Consideration should be given to relocating the archives to the City of Edmonton
      archives. The Alberta Aviation Museum has had visions of expanding the
      collection and acquiring Hangar 15 from Edmonton Airports. As the museum
      acquires airplanes that are consistent with its strategic direction, consideration
      should be given to relocating the restoration area to increase the exhibit area.


      4.4.4 HUMAN RESOURCE MANAGEMENT
      The museum and the society currently have three staff and one project-funded
      archivist. The three staff positions include the Executive Director, the Admissions
      and Gift Shop Manager, and the Office Manager. In order to achieve its long term
      objectives and move toward the fulfillment of its goals, the Alberta Aviation
      Museum needs a core group of competent staff.


      The Executive Director has a business background and according to the position
      description will focus on marketing and communications and fund development.
      The new board will need to delegate the day to day management of the museum to
      the executive director. All of the existing and new positions should report to the
      executive director. The critical positions are the curator, education director, and
      volunteer coordinator.


      An experienced curator is needed to finalize some of the existing donations, define
      the collections policy, enhance the exhibits and displays, develop new museum
      programs and manage the volunteers in the library and archives. The archivist


                                                                                         23
Alberta Aviation Museum                         Edmonton Aviation Heritage Society


      position may not be needed especially if the aviation archives are moved to the City
      Archives.


      Education programs are the core of museum programming. A full time education
      director is needed to expand the programming from grade 6 to K-6. It is assumed
      that a program for an additional grade is made each year. The educational director
      will need to work with the executive director on marketing the educational
      programming.


      We believe that a half time volunteer coordinator is needed. Most of the 50 to 60
      existing volunteers are over seventy years of age. The volunteer coordinator is
      needed to recruit the next generation of volunteers. Some foundations have funding
      for volunteer coordinators.


      4.4.5 VOLUNTEER MANAGEMENT
      The volunteer coordinator will formalize the volunteer program. The volunteer
      program will initially need to focus on succession planning given the age of the
      existing volunteers. The volunteer coordinator should develop partnerships with
      school boards, NAIT, the Canadian armed forces especially the Cold Lake Air
      Force Base, the University of Alberta, and the aviation related businesses at the
      downtown and international airports. These organizations may provide the next
      generation of volunteers. The volunteer management program should build on the
      existing program and include recruitment, selection, training, communication, and
      recognition of volunteers.


      4.4.6 MUSUEM MANAGEMENT
      The curator will take the lead role in managing and displaying the collection and
      developing museum programming. An introduction to the theory of flight would
      enhance the visitors understanding of aviation and the artifacts. The collection
      should be organized around themes as is common in other museum. The museum
      also requires simple story boards and interactive exhibits or audio hand sets to


                                                                                     24
Alberta Aviation Museum                           Edmonton Aviation Heritage Society


      enhance the visitor experience. Materials from the archives could be used to add
      some variety to the exhibits.


      Programming should consider the new events, speakers, aviation movies, kids club
      with hands on activities, photography and artistic displays related to aviation, and a
      rides program. The investment in static and fully operational flight simulators
      would also add to the visitor experience.


      4.4.7 FINANCIAL PLAN


      The combined revenues of the Alberta Aviation Museum and the Edmonton
      Aviation Heritage Society were almost $250,000 in 2005. We project that the
      organizations could achieve revenues of about $500,000 by 2009 and over
      $750,000 by the end of five years. Operating grants will be required from the City
      of Edmonton for 2007 and 2008 as the museum builds core staff and programming.


      The major assumptions driving the revenues are:
            Admissions grow from 12,500 to 28,000 with admission prices increasing
             from $3.50 to $8
            Participation in student programs grows from 2,500 to 12,000 with student
             prices increasing from $4 to $8
            Memberships grow from 225 to 1000 with the price of a season pass
             increasing to $50 by 2011
            Addition of ten new corporate members per year at an average price of $500
            Gift shop sales of $5 per visitor with a 25% profit margin
            Facility and equipment rentals by outside groups increasing from $43,000 to
             $73,000
            Educational partnerships of $25,000 starting in 2007 and growing to
             $100,000 within five years
            Members donations of $20,000 increasing to $100,000 by 2011



                                                                                       25
Alberta Aviation Museum                                                        Edmonton Aviation Heritage Society


                         Provincial and foundations grants of $20,000 in 2007 and growing to
                          $100,000 by 2011


             The major assumptions driving the expenses are:
                         Wages and salaries of $50,000 growing to $200,000
                         Exhibits and displays of $50,000
                         Utility charges of $56,000
                         Marketing programs of $25,000
                         Repairs and maintenance of $25.000
                         Insurance $10,000
                         Displays $100,000


             The capital plans include:
                         HVAC $275,000
                         Various structural repairs $329


Following is a summarized pro forma plan for the Alberta Aviation Museum and the
Edmonton Aviation Heritage Society that incorporates these assumptions. A more detailed
pro forma is included as Appendix 1.
Alberta Aviation Museum and Alberta Heritage Society*
Actuals and Budget (in $000)
                                                                2005                     2007   2008   2009   2010   2011
                                           EAHS         Aviation Museum        Total

Total Revenue                                     138                 110       248       304   388    511    641    762

Total Programming Expenses                        48                      77    125       365   387    405    430    434

Total Building Expenses                           96                      24    120       116   120    122    124    126

Total Expenses                                    144                 101       245       481   507    527    554    560

Net Income (Loss)                                                                 3      -177   -119    -16    87    202

Total Capital Expenditures                                                                                           604




                                                                                                                     26
Alberta Aviation Museum                    Edmonton Aviation Heritage Society




                          Appendix 1 – Detailed Pro Forma Budget
                                        2007- 2011




                                                                          27
Alberta Aviation Museum                                                               Edmonton Aviation Heritage Society


         Alberta Aviation Museum and Alberta Heritage Society*
         Actuals and Budget (in $000)
                                                                                                2005                                      2007         2008   2009   2010   2011
                                                                 Notes     EAHS          Aviation Museum Total
         Revenue
         Donations
         Cash donations                                                              3                 12         15
         Project related grants                                                                        36         36
         Education Partnerships                                                                                                             25          25     50     75    100
         Provincial and foundation grants                                                                                                   20          40     60     80    100
         Member donations                                                            3                                                      20          40     60     80    100
         Sub-Total - Donations                                                                                    51                        65         105    170    235    300

         Admissions                                                  1                                 55         55                        62          94    131    174    224
         Education Fees                                                                                 4          4                        12          24     36     48     48
         Gift Shop (net)                                             2              3                   3          6                        24          32     39     47     51
         Rent from tenants                                                         16                             16                        16          16     16     16     16
         Facility and equipment rental                               3             43                             43                        55          67     69     71     73
         Casino                                                                    50                             50                        50          50     50     50     50
         Other revenue                                                             20                             20                        20

         Total Revenue                                                            138                 110        248                       304         388    511    641    762

         Operating Expenses                                          4
         Salaries and wages                                          5             31                  19         50                       200         209    214    226    226
         Exhibits and Archives                                                                         37         37                       100         103    106    109    112
         Marketing and advertising                                                   2                  2          4                        25          26     27     28     29
         Telephone and internet                                                      6                             6                         6           6      6      6      6
         Office expenses                                                             5                  9         14                        14          14     14     14     14
         Legal and accounting                                                        4                  5          9                         9           9      9      9      9
         Education Program                                                                              3          3                         9          18     27     36     36
         Other                                                                                          2          2                         2           2      2      2      2
         Total Operating                                                           48                  77        125                       365         387    405    430    434

         Building Expenses                                           4
         Utilities                                                                 56                             56                        56          57     58     59     60
         Repairs & Mtnce                                             6             14                  17         31                        25          26     27     28     29
         Insurance                                                                  7                   7         14                        14          14     14     14     14
         Rental costs (wages, security)                              7              6                              6                         8          10     10     10     10
         Building security                                                          4                              4                         4           4      4      4      4
         Parking lot maintenance                                                    4                              4                         4           4      4      4      4
         Waste management                                                           3                              3                         3           3      3      3      3
         Other                                                                      2                              2                         2           2      2      2      2
         Total Building Expenses                                                   96                  24        120                       116         120    122    124    126

         Total Expenses                                                           144                 101        245                       481         507    527    554    560

         Net Income (Loss)                                                                                          3                     -177         -119    -16    87    202

         Capital Expenditures                                        8
         HVAC                                                                                                                                                               275
         Various structural repairs                                                                                                                                         329
         Total Capital Expenditures                                                                                                                                         604



         Notes

         1. Assume that paid admissions (including students) increases to 41,000 and 500 corporate memberships are sold by 2011.
         2. Assume $5/visitor sales and a 25% gross profit margin. Fixed costs are covered by current sales.
         3. The number of days of facility rentals increases to 180 full day and partial days. Prices are increased annually by 2.5%.
         4. Assume 2.5% cost increase per year.
         5. In addition to 3 existing staff, add .5 volunteer co-ordinator, 1 FT education curriculum person, curator and .5 administrative support.
         Add building maintenance (.5) in 2008. Assume a 2.5% salary increase per year.
         6. The City identified 90,000 per year of preventive maintenance costs. Using volunteers staff estimate the cost to be $25,000 per year.
         7. If rentals increase, janitorial and other costs will also increase
         8. Based on City's building assessment. Costs may be less if projects are undertaken by Heritage Society and Aviation Museum volunteers.



         * The Alberta Aviation Museum and the Alberta Heritage Society are separate entities. We have consolidated the two for presentation purposes.




                                                                                                                                                              28
Alberta Aviation Museum                                          Edmonton Aviation Heritage Society


         Alberta Aviation Museum and Alberta Heritage Society*
         Salary and Wage Details
                                                   2006                                          2007      2008          2009        2010      2011
                                                    Annual
         Salaries and Wages               FTE salary ($000) Salary & Benefits

         Executive Director                  1            60            60
         Gift shop and admissions            1            14            14
         Office Manager                      1            16            16
         Current                                                        90

         New:
         Volunteer co-ordinator            0.5            26                                      13
         Education and Curriculum            1            65                                      65
         Curator                             1            36                                      36

         Total                             5.5                          90                       204           209        214         220       226




         Alberta Aviation Museum and Alberta Heritage Society*
         Price and Volume Assumptions                                           2006     2007           2008          2009        2010        2011

         Inflation                       0.025

         Usage numbers
         General admission                                                   12,500     15,600      18,700           21,800      24,900      28,000
         Students                                                             2,500      3,000       6,000            9,000      12,000      12,000
         Seasons pass                                                           225        380         535              690         845       1,000
         Total admissions                                                    15,225     18,980      25,235           31,490      37,745      41,000

         Corporate membership                                                     0        10            20             30           40         50


         Charges ($)
         General admission average                                               3.5        4             5              6             7         8
         Students/seniors                                                          4        4             5              6             7         8
         seasons pass                                                             20       40            40             40            44        50
         corporate membership                                                      0      500           500            500           500       500

         Gift shop ($5/person)              5
         Contribution to revenue          25%
         Gift shop revenue                                                   77,000     94,900     126,175       157,450        188,725     205,000
         Contribution to revenue                                                        23,725      31,544        39,363         47,181      51,250

         Education Program
         Cost/student                      $3
         Charge/student                    $4
         Revenue                                                                       $12,000     $24,000       $36,000        $48,000     $48,000
         Cost                                                                           $9,000     $18,000       $27,000        $36,000     $36,000

         Facility Rental
                                        # Days     Rate        Hours   Total annual
         Parade area-full days              35     1150                      40,250
         Parade area-partial days          125       45            3         16,875
         Museum area (evening)              20      250                       5,000
         Equipment rentals                                                    5,000
         Total                            180
         Total                                                               67,125
         Rental Cost
         full days ($150/event)          5250
         Part days ($30/event)           4350




                                                                                                                                29
Alberta Aviation Museum               Edmonton Aviation Heritage Society




                                   Appendix 2
                          Comparative Aviation Museums




                                                                     30
Alberta Aviation Museum                                     Edmonton Aviation Heritage Society




                                  Comparative Aviation Museums

                Reynolds- Alberta        Aero Space             Canadian Warplane        New England
                Museum                   Museum                 Heritage Museum          Air Museum
Location        Wetaskiwin               At Calgary             At Hamilton              Bradley
                                         International          International Airport    International
                                         Airport                                         Airport, CT
                                                                                         Midway between
                                                                                         Hartford and
                                                                                         Springfield
Ownership       Government of            The Aero Space         Canadian Warplane        Connecticut
                Alberta                  Museum                 Museum Heritage          Aeronautical
                                         Association of         Society                  Historical
                                         Calgary                                         Association
Mission         Preservation,            Promote the            Acquire, document, and   Teaching and
                research, and            appreciation of        preserve and maintain    preserving
                exhibition of            western Canadian       that were flown by the   aviation history
                mechanical heritage      contributions in       military from WW2 to     and technology
                in transport,            aviation & space       present                  focusing on
                aviation, agriculture,                                                   Connecticut
                and industry
Visitors        51,000 visitors, 25%     25,000 to 30,000       66,000 visitors,         60,000 visitors
                from Edmonton, 5%        Include rentals,       including 12, 000        Includes rentals,
                from Wetaskiwin,         volunteers etc.        students                 volunteers etc.
                18-19% from              System being
                Calgary                  installed for counts
                50% from out of
                province/ country.
                Admission is to the
                Museum and
                Aviation Hall of
                Fame
Hours           10 Am to 5 Pm,           Open 7 days a          Open 7 days a week       Open 7 days a
                closed Mondays,          week                   9 Am to 5 Pm             week
                except May – Sept,       10 Am to 5 Pm                                   10 Am to 5 Pm
                7 days a week
Entrance Fees   Family $25               Family $18             Adults $10               Adults and
                Adult $9                 Adult $7               Seniors $9               students $9
                Senior $7                Senior $4.50           Students $9              Children $5
                Child $5                 Student $4.50          Children $6              Seniors $8
                6 and under are free     Children $3.50                                  Audio tour $3.

Memberships                              Family $40             2000 members             Family $60
                                         Individual $25         3500 special members     Individual $50
                                         Senior $20             Family $150              Patron $100
                                         Student $15            Individual $100          Benefactor $500
                                         Life $500              Senior $75               Lifetime $1000
                                                                Student $30
                                                                Lifetime $1500




                                                                                                          31
Alberta Aviation Museum                                         Edmonton Aviation Heritage Society



Corporate      Stan Reynolds             44 corporate             Few corporate             55 corporate
sponsorships   donated the majority      sponsors                 sponsorships              sponsors
               of the collection. He     Focused on               Contributing member       Business
               restores aircraft off-    education, special       $250                      associate $250
               site in his own           events, restoration      Supporting member         Business fellow
               facility at no cost to    In-kind donations        $500                      $500
               the museum.               as well                  Benefactor $1000          Business partner
               Partnerships for                                                             $1000
               specific exhibits                                                            Business patron
               (e.g. Honda for                                                              $2500
               motorcycle exhibit)

Volunteers     300 volunteers            16000 hours              Several hundred regular   175 volunteers
               20,000 hours              Flexible scheduling      volunteers                Docent/tour
                                         & training               Education                 guide
                                         Visitor services         Tours                     Restoration
                                         host                     Library                   Special events
                                         Educational tour         Archives                  Gift shop
                                         guide                    Pilots & crews            Exhibit
                                         Interpretive tour        Restorations              development
                                         guide                    Fund raising              Fund raising
                                         Special events           Gift shop                 Library
                                         Restoration &            Special events            Curatorial
                                         maintenance                                        assistance
                                         Amateur radio                                      Applications sent
                                         operator                                           to museum
                                         Volunteer profiles                                 director
Operating      $1,900,000                $480,000                 $3,000,000                $1,000,000
budget         Building Operation
               is an additional $1.3
               million, for a total of
               $3.4 million
Revenues       Admissions                Admissions               Admissions $270000        Admissions
               $250,000                  $47,000                  Memberships/donations     $275000
                                         Memberships              $1000000                  Memberships
                                         $20000                   Catering $400000          $70000
                                         Education $20000         Shop $400000              Corporate
                                         Rentals $30000           Flying $200000            memberships
                                         Casinos $75000           Fund raising $300000      $30000
                                                                  Events and other          Rentals $30000
                                                                  $400000                   Shop $180000
                                                                                            Members
                                                                                            donations
                                                                                            $200000
                                                                                            Educational
                                                                                            partnerships
                                                                                            $175000
                                                                                            Other $75000
                                                                                            Trip $25000
Facility       43,000 sq ft in main      20000 sq ft in drill     112,000 sq ft             Five buildings
               building,                 hall                     New facility cost $12     erected in 1981
               81,000 sq ft in           Temporary                million with $9 from      Three display
               warehouse (autos,         building erected         government                buildings with
               farm equipment)           (25000 sq ft)            Dofasco Dome shaped       100,000 sq ft of



2.                                                                                                        32
             16,200 sq. ft. in       Plan for 25000 sq ft   room for meetings,         display space
             Aviation Hall of        addition               receptions, and starting   Military exhibit,
             Fame                    Exhibit hall           point for educational      civilian exhibit,
                                     Library                tours                      and showcase
                                     Art gallery            Café                       area
                                     Gift shop              Westinghouse Gallery       B29 hanger
                                     Offsite city storage   with Lancaster bomber      Activities
                                     Space                  Rolls Royce Theater        corridor
                                                                                       Outside storage
                                                                                       area
                                                                                       Gift shop
                                                                                       Small dining area
Governance   Government              15 member not for      10 member not for          27 member not
             operated.               profit board           profit board               for profit board
             Contract with
             ‘Friends’ for gift
             shop, restaurant, and
             interpretive services
Staff        25 full time staff, 7   Six full time staff    19 full time staff         Four full time
             of which are            Executive director     15-16 part time staff      staff
             employed by the         Curator                CEO                        Four part time
             ‘Friends.’              Education Officer      Deputy Director            staff
             Building                Administrative         Controller                 Executive
             maintenance is          officer                Group Tour                 director
             contracted by AB        Volunteer Manager      Coordinator                Assistant
             infrastructure.         Fund development       Museum Gift Shop           executive
                                     and                    Manager                    director
                                     Communications         Catering Manager           Educational
                                     Officer                Marketing Manager          Director
                                                            Volunteer Coordinator      Admissions and
                                                            Director                   Gift Shop
                                                            Educational Director       Manager
                                                            Librarian                  Development
                                                            Curator                    Officer
                                                            Communications             Restoration
                                                            Officer                    manager
                                                            Flight Coordinator         Administrator 58
                                                                                       BW Memorial
                                                                                       Summer program
                                                                                       manager
Aircraft     70 vintage aircraft.    24 aircraft from       40 WW2 aircraft to         80 aircraft form
Collection   An additional 70 are    WW1, WW2, post         present with 30 in         WW1, WW2,
             being restored and      war military, civil    flying condition           post war military,
             will likely be          aviation,              Radio room and real        civil aviation,
             donated                 recreational,          time operating radio       helicopters
                                     helicopters                                       125 aircraft
                                     displayed                                         engines
                                     3 under restoration                               Uniforms
                                     Aircraft engines                                  Personal
                                                                                       memorabilia
Notable      1928 American           Lancaster              Lancaster                  Sikorsky VS 44A
aircraft     Eagle Biplane           Twin Otter             Spit fire                  (flying boat)
             1943 Staggerwing        Vodo                   B25                        B29 bomber
             Dehavilland             CF100                                             Silas Brooks
             Avro                    Vampire                                           Balloon Basket
             Hawker Hurricane,       Barkley Grow                                      Bunce-Curtis

                                                                                                      33
                 Each aircraft is         DC 3                                            Pusher
                 special or distinctive   Under restoration                               Sikorsky
                 in some way              (Hurricane,                                     helicopter
                                          Mosquito                                        Kaman K-225
                                          Cessna crane)
Display          Programming is           Themes-               Interactive audio &       Landmark
                 stronger for             trailblazers,         video displays            artifacts that
                 automobiles and          pioneers, heroes,     Easy to read panels       changed history
                 farm machinery.          adventures            Rotate displays every     Stories of
                 Primarily a                                    three months              veterans
                 collection of aircraft                         Themes – fighters,        Principles of
                 supplemented by                                trainers, fighter jets,   flight
                 biographical                                   bombers, army co-         Impact of
                 storyboards in the                             operation                 Connecticut
                 Hall of Fame                                                             (balloons, space
                                                                                          suits)



Other exhibits   Hands-on exhibits,       Trainers              WW2 trainer               Static flight
                 primarily auto and       Flight simulators     WW2 radios                simulators
                 agriculture related      Amateur radio         Flight demonstrations     Fully operational
                                          station                                         flight simulator
                                          Space agency
                                          counsels
                                          BCATP
Library          Theme related books      Periodicals of 321    4000 books                John W. Ramsay
                 from the late 1800’s     titles, books         Several thousand          Research Library
                 to the present, trade    New computer          periodicals               20000 books
                 literature, shop and     based collections     Manuals                   97000
                 owners manuals,          catalogue             Library run and staffed   periodicals
                 automotive and                                 by volunteers             5000 technical
                 agricultural                                   Working on electronic     manuals
                 newspapers                                     catalogue                 7000 sq ft
                                                                                          Staffed by 17
                                                                                          volunteers
Archives                                  Documents,            Photographs (3000)        Archives part pf
                                          technical drawings,   Insignia                  library
                                          photographs           Uniforms                  Audi visual
                                          Limited search,       Medals                    (1000)
                                          more extensive        Aircraft parts            Photographs
                                          requires a visit      Uniforms                  (21000)
                                                                Films and videos          Papers of
                                                                Papers                    aviation pioneers
Education        Aviation Nation-         Kindergarten,         Junior Aviators           Pre-visit
programs         manipulate the           aircraft assembly,    Program (k-3)             educational
                 controls of a vintage    history of flight,    Science of Aviation (4-   handbook
                 aircraft (grade 6)       theory of flight,     6)                        Thematic tours
                 Rocket Science-          aircraft structures   History of Aviation (7-   such as evolution
                 design and build a       and forces            10)                       of flight,
                 rocket (grade 6)         Links to grade                                  pioneers in
                                          1,2,4,6,7 curricula                             aviation, aircraft
                                                                                          design,
                                                                                          Connecticut’s
                                                                                          contributions to
                                                                                          flight

                                                                                                         34
                                                                                         Student Outreach
                                                                                         Aviation
                                                                                         Resources
                                                                                         Elementary and
                                                                                         middle schools
                                                                                         social and
                                                                                         science programs
                                                                                         Lessons and
                                                                                         activities
                                                                                         delivered
                                                                                         independently or
                                                                                         to support
                                                                                         museum visit
                                                                                         through website
                                                                                         Build and fly
                                                                                         activities
                                                                                         Scout activities
                                                                                         & badge
                                                                                         Summer
                                                                                         programs

Other services   Biplane rides,          Writer in residence   Ride programs             Talks
                 operated by Central     Artist in residence   Guest speakers            Hands on craft
                 Aviation Inc.           Movie nights                                    activity for kids
                                         Hands on craft                                  Kids club
                                         activity for kids                               Snack area and
                                                                                         picnic tables
Events                                   Fathers day           Numerous special          Open cockpit
                                         Aviation Days         events                    days
                                                                                         Women in flight
                                                                                         Connecticut’s
                                                                                         role in aviation
                                                                                         Modeling
                                                                                         workshops
                                                                                         Scavenger hunts
                                                                                         Veterans day
                                                                                         Food vendor on
                                                                                         site for special
                                                                                         events/exhibits
Marketing &      $70-75,000 budget.      Newsletter            HMS Prince of Wales       Newsletter
Communicati      Media sponsors.         Advertising special   Patron of Museum          Annual diner
ons              Print/electronic, no    events                Audio visual              On road events
                 television.             Awards diner          presentations to groups   Aviation art
                 Distribute materials    Logos on mugs,        Newsletter                contest
                 through visitor         shirts                Brochure distributed at   Books, posters,
                 centre.                 Display at            tourism booths            audio tapes,
                 Included in             PetroCanada           Limited advertising       DVD
                 provincial              Books and
                 advertising             publications

Funding          Province pays           Exhibit signage       Patron Donor Council      Tributes
                 operating and capital   sponsorship           Cornerstone ($100000)     Stock
                 costs.                  package               Wing of Platinum          Matching
                 ‘Friends’ apply for     Education sponsors    ($50,000)                 corporate
                 funds from CFEP         Anonymous donor       Wings of Gold             donations
                 and STEP,               Annual support of     ($25000)                  In-kind gifts

                                                                                                         35
               Corporate donations   $100000               Wings of Silver         Planned giving
                                     Project funding       ($10000)                Corporate and
                                     $50000 for            Wings of Bronze         foundation
                                     restoration           ($5000)                 grantors (18)

Public         Majority is paid by   $100000 three year    No operating funding    Connecticut
Funding        the province          commitment from       Hamilton does not tax   Department of
                                     the City of Calgary   property                Education
                                     $100000 in                                    Greater Hartford
                                     provincial funding                            Arts Council
                                     $50000 in federal
                                     funding normally,
                                     but not in 2006
Partnerships    Stan Reynolds,      Calgary Flight        Dofasco                 Education
                Central Aviation    Training Center       Voortman Cookies        partnerships
                                     Calgary Coop          Westinghouse            ($175000)
                                     Calgary Airport       Rolls Royce
                                     Authority




                                                                                                  36
                                 Interviewees

Gerry Osmond             Alberta Museums Association
David Dusome             Reynolds-Alberta Museum
Marleen Kankkunen        Community Services, City of Edmonton
Lynda Nelson             Asset Management, City of Edmonton
Kim Krushell             Councillor, City of Edmonton
Michael Phair            Councillor, City of Edmonton
Jim Powell               Executive Director, Aerospace Museum
Pamela Richards          Deputy Director, Canadian Warplane Heritage Museum
Dave Heathcote           Avionics Program, NAIT
Michael Speciale         Executive Director, New England Aviation Museum
Andy Shanks              Manager, General Aviation, Edmonton Airports
Tom Hinderks             Executive Director, AAMA and EAHS
Pat Fahy                 President, EAHS
Rod MacLeod              President, AAMA
Robert Smith             Professor, University of Alberta
Don Grimble              Executive Director, Kingsway Business Association
George Smith             Telus World of Science

Edmonton Aviation Heritage Society Focus Group
Pat Fahy                 Civil Aviation Search and Rescue Association (CASARA)
Graham Pilkington        Edmonton Aviation Heritage Society
Rod Macleod              Alberta Aviation Museum Association
Terry Champion           Edmonton Aviation Heritage Society
Jim Williams             Ex-RCAF
Paul Squires             Ventura Memorial Flight Association
Eric Dudzica             504 Air Cadets
Paul Charles             418 Squadron
Crimson Star             Experimental Aircraft Association
Jim Want                 Alberta Aviation Museums Association
Alex Richards            700 Wing Air Force Association
Alex Nagorski            Balloon Club
Chris Pludek             180 Royal Canadian Army Cadet Corps
Bernie Sheppard          418 Squadron
Tom Hinderks             Executive Director
Willy Williams           Edmonton Aviation Heritage Society




                                                                              37

				
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