POLICY REPORT
                              PUBLIC ART PROGRAM


                                                       Date:  June 12, 1995
                                                       Dept. File No.: SP  


   TO:       Vancouver City Council

   FROM:     Director of Cultural Affairs, in consultation
             with the Directors of Finance and Legal Services
             and the City Engineer

   SUBJECT:  Private Sector Public Art Process -
             Maintenance Amendments



   RECOMMENDATION

        A.   THAT developers at their option place up to 20% of budgets for
             private-site  public  art work  in  an  interest-bearing trust
             account  dedicated  to  maintaining  such  work,  under  terms
             satisfactory to the Director of Legal Services.

        B.   THAT privately initiated public  art intended for public lands
             place  a minimum of  10%, or up  to 20% of  project budgets in
             exceptional  circumstances,  to  the  Public  Art  Maintenance
             Reserve,  upon  occupancy  or  prior   to  installation,  with
             interest generated by the Reserve used to maintain public-site
             art work.


   GENERAL MANAGER'S COMMENTS

        The  General Manager of Community Services RECOMMENDS approval of A
        and B.


   COUNCIL POLICY

   On  June 23,  1994, City  Council adopted  the following  provisions for
   public art maintenance:

   1.   THAT  privately  initiated public  art  intended  for public  lands
        allocate  10%  of project  budgets  to the  Public  Art Maintenance
        Reserve,  upon occupancy  or prior  to installation,  with interest
        generated by the Reserve used to maintain public-site art work.



   2.   THAT art installed on private lands be the responsibility of and at
        the risk of  the owner, and be maintained at  the owner's sole cost
        for the life of the development.


   PURPOSE

   This report has  two purposes:  to recommend a  new trust account option
   to maintain public art at  private sites; and to recommend  an amendment
   to  the  current  maintenance provisions  for  art  at  civic sites,  to
   increase their flexibility.

   BACKGROUND

   Since June, 1994,  developers and others siting art on public lands have
   been required  to deposit 10%  of art  project costs in  the Maintenance
   Account of the Public Art Reserve.   Terms of reference for this Reserve
   are proposed  in a companion  report.  Developers siting  art on private
   lands have been required  to maintain it at  no cost to the art  budget,
   for the life of the development.


   DISCUSSION

   The New (Trust Account) Option

   Urban  Development  Institute  (UDI)  has noted  a  discrepancy  between
   public-site and private-site maintenance  provisions, and suggests a new
   option  to make them similar.  This option would  also encourage strata-
   title corporations to initiate maintenance programs.

   The recommended new option would allow  developers to place up to 20% of
   art  work budgets  in trust  accounts dedicated  to maintenance.   Trust
   account  funds would be released  only for specified  art restoration or
   maintenance.  The amount of each deposit would be based on the estimated
   maintenance needs  of individual art works,  to a ceiling of  20%.  This
   gives developers the freedom to select  art works which may have  higher
   than normal maintenance needs.

   This  option   makes  the   private-site  and   public-site  maintenance
   provisions roughly  similar.  The  City Public  Art Maintenance  Reserve
   functions like  an insurance plan, that pools funds from many budgets to
   maintain works  having different maintenance needs.   The private-sector
   trust  account, in contrast,  will be based  on one or  two art works at
   individual  developments, and will  not have a large  pool of funds from
   which to draw.  


   The  private-sector   maintenance  accounts  will  thus   eventually  be
   exhausted, because expenditures and  inflation will exhaust the original
   deposit.  However,  staff and UDI representatives believe  the existence
   of the account assures that art works will be maintained  at the outset,
   setting a desirable precedent.

   City staff  also note it is  not practically possible to  enforce strata
   corporations to maintain things they  do not want to maintain, and  some
   corporations may maintain art works only as long as funds are available.
   Nevertheless, a  dedicated trust account provides  some initial security
   for the art  work, and,  properly, leaves final  responsibility for  art
   maintenance with its owner.

   Staff recommend this option to Council, provided the trust account terms
   ensure:

   -    That the trust  accounts bear  interest and that  both capital  and
        accrued funds  be dedicated to  maintaining the public  art work(s)
        contributing to the account.

   -    That  funds be  allocated only  to art  restoration, conserva-tion,
        repair,   special  cleaning   or  other   non-routine  maintenance,
        requiring the skills of the  artist, art conservator or specialist,
        and conducted in accordance with the artist's maintenance program.


   Amendment to the Current Private Sector Provisions

   Staff also recommend an amendment to current maintenance  provisions for
   privately-initiated  public art intended for civic sites.  The intent is

   to increase their flexibility.

   Currently,  developers and other sponsors siting art on civic lands must
   deposit 10% of art work budgets in the Maintenance Reserve.  Interest on
   Reserve funds is used to maintain work which contributed to the Reserve.
   Staff now  believe that 10%  should be the minimum  deposit, required in
   most  cases, but  that works   expected  to have  a higher  than average
   maintenance costs should provide up to 20%.

   Deposits   greater  than   10%  would   be  negotiated   in  exceptional
   circumstances,  and  enable the  acceptance of  art  work wanted  by all
   parties but known  to have higher  than average maintenance needs.   The
   specific  deposit would  be set  after a  maintenance assessment.   This
   gives staff the flexibility to recommend acceptance of exceptional work,
   without fear of draining the Maintenance Reserve.




   Council should  note that maintenance  needs figure  prominently in  the
   criteria  for civic-site art work and high-maintenance work is generally
   discouraged.


   URBAN DEVELOPMENT INSTITUTE

   Urban  Development Institute representatives  have indicated support for
   the amendments recommended above.


   PUBLIC ART COMMITTEE

   At its meetings of  April 10 and June 12, 1995, the Public Art Committee
   recommended approval of the recommendations above.

   All private-sector  public art  provisions adopted  since 1990  were, in
   1994, published together as the Public  Art Policies and Guidelines.  If
   Council  adopts  one  or  both  of  the  recommendations   above,  these
   Guidelines would be amended to reflect the new provisions.



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