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. * * * * *