POLICY REPORT
PUBLIC ART PROGRAM
Date: 12 June 1995
Dept. File No.: SP
TO: Vancouver City Council
FROM: Director of the Office of Cultural Affairs,
in consultation with the Director of Finance
SUBJECT: Public Art General and Maintenance Reserves -
Terms of Reference
RECOMMENDATION
THAT Council approve the establishment of the Public Art General
Reserve and the Public Art Maintenance Reserve as interest bearing
reserves, with terms of reference for the deposit and expenditure
of funds as set out in Appendices A and B, respectively.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
A Public Art Reserve was identified in 1990 and again in 1994 as a
requirement of the Public Art Program, to reserve maintenance deposits
and public art funds from other sources, until staff can report their
allocation to maintenance or projects for approval by City Council.
The current maintenance provisions are:
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 installa-tion, with interest
generated by the Reserve used to maintain public-site art work.*
* A companion report recommends changing this provision from
allocate 10% to allocate a minimum of 10%, and in exceptional
circumstances up to 20% to the Reserve.
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
The purpose of this report is to recommend the establishment of a Public
Art General Reserve and a Public Art Maintenance Reserve as interest
bearing reserves, with terms of reference as set out in Appendices A and
B, respectively.
BACKGROUND
The need for a Public Art Reserve has been discussed since the Public
Art Program was adopted in 1990. The adoption of maintenance and Option
C provisions in June, 1994, requires City Reserves to hold funds
received for maintenance or received as cash in lieu of art projects.
DISCUSSION
Two interest-bearing Reserves are recommended. The Public Art General
Reserve would reserve all non-maintenance funds -- gifts, transfers,
payments in lieu, etc. -- until their allocation to art projects
recommended by staff and approved by Council. The Public Art
Maintenance Reserve would reserve funds deposited specifically to
maintain art work at civic sites.
Public Art General Reserve
The General Reserve will reserve funds from all non-maintenance sources
-- cash in lieu payments, Option C payments, etc. --before their
allocation to approved projects. Unlike the Maintenance Reserve
(discussed below), some restrictions may govern the purposes or projects
on which General Reserve Funds may be spent. For example, funds may be
dedicated to a specific site or project, and staff recommendations at
the time of allocation will note such requirements.
All allocations from the General Reserve will be reported by staff for
Council's approval.
Public Art Maintenance Reserve
The Maintenance Reserve will pool and reserve the maintenance deposits
now required for art works sited on civic lands. Interest accrued on
deposits will be spent according to the artist's instructions to
maintain works which contributed to the pool. The artist's service
specifications will be the basis of an inspection and maintenance
service now in formulation. Various inspection/maintenance schemes are
under review, including the artist-service model contracted by Seattle
Arts Commission. We will report back recommendations for an inspection
and maintenance service when a review is complete.
The Director of Finance has asked Cultural Affairs staff to consider
whether the cost of the inspection service, as distinct from cost of
actual maintenance, is properly a City Operating, rather than
Maintenance Reserve, expense. We believe the cost of the inspection is
properly an Operating cost, but will present our recommendation to
Council when such costs -- for inspection and for maintenance -- are
identified in context with a complete inspection/maintenance plan.
Council is also reminded it will be some years before the adequacy of
current maintenance deposits (usually 10% of art budgets) is known. If,
in future, funds accumulated in the Maintenance Reserve prove to be
surplus to the needs of works contributing to the pool, we recommend
such funds be used to maintain art works which were sited on civic lands
prior to creation of the Maintenance Reserve.
Staff are reviewing volunteer initiatives such as America's SOS (Save
Outdoor Sculpture) program and other means of addressing maintenance
for art works which were sited on civic lands before the current
provisions were adopted.
City Council will approve all expenditures from the General and the
Maintenance Reserves. Terms of reference for each Reserve are detailed
in Appendices A and B.
Vancouver Foundation
Vancouver Foundation currently manages a maintenance fund for the
Sculptor's Society of British Columbia. Noting that the Founda-tion can
pay higher interest rates than the City, the Public Art Committee has
requested that staff report back on feasibility of the Foundation
hosting the Public Art Maintenance Reserve.
On first discussion, Foundation Officials noted they are reviewing their
endowments and distancing themselves from those resembling "community
banking" functions. Staff will raise the idea again when negotiating
with the Foundation on the Library Square public art endowment.
Meanwhile, staff recommend proceed-ing with the City Reserves, to enable
a timely start to the maintenance program. The Public Art Committee
supports this course.
SUMMARY
This report recommends the establishment of Public Art General and
Public Art Maintenance Reserves, to provide for the develop-ment and
maintenance of public art works at civic sites. Terms of reference for
the Reserves are set out in Appendices A and B. Staff will report back
with details of a maintenance service, including a recommendation
whether any part of such service should be funded from the City
Operating Budget, rather than the Public Art Maintenance Reserve. Staff
will also pursue the feasibility of placing the Maintenance Reserve with
Vancouver Foundation.
* * * * *
APPENDIX A
TERMS OF REFERENCE
PUBLIC ART GENERAL RESERVE
The Public Art General Reserve is an interest-bearing reserve under the
purview of the Director of Finance. Its purpose is to reserve public
art payments in lieu, Option C allocations, gifts, and funds from
similar sources, until their allocation to public art projects is
recommended by staff and approved by City Council.
The following terms of reference and conditions apply:
1. The name of the Reserve is the Public Art General Reserve and its
purposes are generally as described above or as City Council may
from time to time approve.
2. The Public Art General Reserve will pay interest on accounts at
rates determined by the Director of Finance, being generally those
rates earned on the City's short-term investments.
3. All allocations from the Reserve will be recommended in staff
reports and approved by City Council.
4. Any restrictions on deposited funds will be reported to City
Council in the report recommending their allocation.
* * * * *
APPENDIX B
TERMS OF REFERENCE
PUBLIC ART MAINTENANCE RESERVE
The intent of the this Reserve is to reserve funds deposited to maintain
public art works at civic sites. Reserve funds may be allocated for
maintenance only with the approval of City Council. The following terms
and conditions apply:
1. The name of the Reserve is the Public Art Maintenance Reserve and
its purposes are generally as set out above or as City Council may
from time to time approve.
2. The Public Art Maintenance Reserve will pay interest on deposits at
a rate determined by the Director of Finance, being generally those
rates earned on the City's short-term investments.
3. Recommended maintenance expenditures will be in accordance with the
artist's instructions supplied as a condition of acceptance of the
art work for civic lands.
4. Maintenance Account funds may be drawn only for special cleaning,
conservation, repairs or restoration requiring the specialized
skill of the artist or art conservator, and performed in accordance
with the artist's instructions.
5. The costs of repairs or restoration occasioned by vandalism may be
recovered from the Reserve. However, reasonable limits may be
placed on the cost of graffiti removal.
6. Notwithstanding the availability of funds in the Reserve,
reasonable limits may be placed on the amount expended to clean,
maintain, conserve, repair or restore any art work.
7. Expenditures will first of all be recommended for art works which
have contributed to the Reserve. However, if a Reserve surplus is
sustained for several years, the surplus funds may, with the
approval of City Council, be allocated to maintain other civic art
works.
* * * * *