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.



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                                                                 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.



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                                                                 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.



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