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. * * * * *