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HomeMy WebLinkAbout1986-06-17; City Council; 8667; FUNDING FOR THE ARTS# c Q w > 0 @z a a. 4 .. z 0 F 0 =! a 0 z 3 0 0 ,- i \ CIT~F CARLSBAD - AGEND~ILL AB# % 6 7 TITLE: DEPT, MTG. 6/12/86 FUNDING FOR THE ARTS CITY, DEPT. FIN CITY RECOMMENDED ACTION: Adopt Resolution No.g6/7, approving the transfer of $156,000 from the Capital Construction Fund to the Arts Fund for the support of the CultL Arts Program. ITEM EXPLANATION: Section 2.18.130 of the Municipal Code states: "In addition to any budget fund all City department heads shall inczude in all estimates of necessary expenditures and all requests for authorizations or appropriations for construction projects, an amount for works of art equal to at least one percent of the total cost of any such construction project as estimated in the City's Capital Improvement Program for the year in which such estimate or request is made. If there are legal restrictions on the source of funding with respect to any particular project which precludes art as an object of expenditure of funds, the amount of funds so restricted shall be excluded from the total project cost in making the required estimate. I' The City's 1985-86 Capital Improvement Program includes 36 projects totali $15.6 million funded from a variety of different sources. The following t summarizes the funding for these projects: Unrestricted Funds General Capital Construction $ 900,000 Revenue Sharing 1,300 , 000 Total: $2,200,000 Semi Restricted Funds Public Facilities Fees $5,400,000 Redevelopment 1,800 , 000 Park-In-Lieu Funds 1,600,000 Total : $8,800,000 Restricted Funds Gas Tax $ 200,000 Sewer Construction 1,000,000 Grants & Other 3,400 , 000 Total : $4,600,000 Total All Funds $15,600,000 . e 0 -2- Agenda Bill No. 86 6 7 The City Council may elect one of several approaches to funding the Arts Prog The primary alternatives are described below: 1. The Council may use a strict interpretation of the Municipal Code and appropriate funds for the Arts on a project-by-project basis, as capital projects are presented to the Council for approval. This alternative provides the least funding for the arts. Appropriations for the Arts would depend on the timing of project submissions and the Council's position on the use of "restricted" funds. 2. Council may elect to appropriate funds from all unrestricted sources as one lump sum. This approach provides about $22,000 for the Arts Program this year. The appropriation would come from the unobligated balance in each unrestricted fund. 3. Council may elect to include funds from semi-restricted sources in the appropriation for the Arts. If this action appropriated funds in one lump sum as described in alternative 112, a total of about $110,000 could be provided for Arts Programs. The restrictions on the use of PFF, Park-in-Lieu and Redevelopment funds would continue to exist under this alternative, thus limiting the Council's ability to allocate the total funds available in the City's Arts fund to a wide variety of projects. 4. Council may choose to allocate 1% of all capital projects in the 85-86 CIP to the City Arts fund from an unrestricted source, thereby eliminating any conflict with restrictions on use and providing the maximum funding for the program. would be provided to the Arts fund under this alternative. A total of $156,000 The staff is recommending that Council adopt the concept described in Alterna #4. General Capital Construction fund is capable of providing $156,000 for this purpose this year due to the high levels of revenue and relatively conservati spending patterns of the City departments. The proposed resolution is designed to implement alternative 14. Should Coun wish to proceed, adoption of the resolution is all that is necessary. Counci is not bound by ordinance to transfer any funds to the Arts program and may simply take no action if a transfer is not desired. This option provides maximum funding with minimum restriction on funds. FISCAL IMPACT : Any funds tranferred to the Arts program will reduce the amount of funds available to finance capital projects. This transfer was considered when sta was reviewing the 86-87 CIP. If the proposed resolution is adopted, the total funds available in the Arts for 1985-86 will be $206,000. EXHIBITS : 1. 2. Memo dated 4/22/86 - Fund for the Arts. 3. Memo from manager, Cultural Arts Program, dated 4/21/86. Resolution No.f&/7 authorizing the transfer of $156,000 to the Arts Prog a* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 281 e 0 8617 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE TRANSFER OF $156,000 FROM THE GENERAL CAPITAL CONSTRUCTION FUND TO THE CARLSBAD ARTS COMMISSION FUND FOR THE SUPPORT OF THE CULTURAL ARTS PROGRAM. WHEREAS , Chapter 2.18 of the Carlsbad Municipal Code which goverr operation of the Carlsbad Arts Commission allows the City Council to a] 1% of the estimated cost of each capital project funded from unrestrici funds for the Cultural Arts Program, and WHEREAS, the City Council has adopted the 1985-86 Capital Improvc Program totaling $15.6 million from all sources of funds, and WHEREAS, in order to eliminate any conflict with both major and 1 restrictions on funds, the City staff has recommended that the Council authorize the appropriation of funds from the General Capital Construe Fund in the amount of 1% of the Capital Improvement Program, $156,000, the Arts Program, and WHEREAS, as this action also provides the maximum funding for th Program and is consistent with Council's intention to provide support Cultural Arts in Carlsbad, and I WHEREAS, the City Council retains full control of all funds resi in the City's Cultural Arts Fund, and WHEREAS, the Council is not obligated by this action to continue - transfers imo the Cultural Arts Program Fund in future years. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City o Carlsbad , California, that the amount of $156,000 is hereby transferr the General Capital Construction Fund for the purpose of providing sup to the Cultural Arts in Carlsbad. XXX - 6 1 2 3 4 5 6 7 8 9 10 I1 12 13 14 15 16 17 e 0 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Cou of the City of Carlsbad, California, held on the 17thday of 1986, by the following vote, to.wit: June AYES: Council Members Casler, Lewis, Kulchin, Chick and Pettint NOES: None ABSENT: None -”*;; i;/ piL MARY H. CA ER, Mayor ATTEST: ALETHA L. RAUTENKRAN‘Z, City Clerk (SEAL) 18 19 20 21 1 ~ I I - 22 23 24 25 26 27 28 i e e APRIL 22, 1986 TO : RAY PATCHETT - ASSISTANT CITY MANAGER FROM : Jim Elliott - Finance Director FUNDING FOR THE ARTS (REVISED MEMO) Thank you for sharing the Mayor's note on the Arts Program with me. I'm glal to see that the Mayor and City Manager have had a chance to review the propo transfer of funds to the Arts fund. Perhaps this would be a good time to di where we are with the funding for the Arts and how we got here. First, a little history is in order. In 1984-85 the City Council appropriatl $50,000 for support of the Arts. This was added to the budget in mid-year ti provide funding for an Arts Coordinator and operating expenses. By June 30, the Coordinator had not been hired and the total $50,000 remained unspent. $50,000 balance was transferred from the general fund to the new Civic Arts The balance in the Arts fund at June 10, 1985, as shown by the City's Annual Financial Report, was $50,000. The 1985-86 operating budget includes an appropriation of $50,000 from the general fund for the Civic Arts Program (p.257). This is in addition to the $50,000 held in the Civic Arts fund, and pays for administrative expenses including staff salaries and other overhead expenses. The second area of discussion is the appropriation of 1% of capital projects Arts programs. Under Section 2.18.130 of the Municipal Code, the staff is directed to include 1% of the cost of each capital project for works of art. The code further states that the Council may transfer funds to the City's Ar fund leaving the final decision to transfer open to Council action on a project-by-project basis, if so desired. Staff's recommendation to the Council is to take the 1% contribution for all capital projects from the general capital construction fund rather than from each capital fund. This is intended to avoid conflicts with existing Counci policy, the Municipal Code and legal controls or grant restrictions that exi on many of the other funds. This option also provides maximum funds for the Council's Arts fund with a minimum of controls. conflicts which could occur: The following illustrates Grant Funds - Each grant is provided to the City by the granting agen for a specific purpose. Contributions to Civic Arts are typically no considered as part of the reasonable construction costs. The Grant f Highway Bridge Repair and Replacement funds for the Agua Hedionda Bridge would not allow an expenditure for the Arts. Drainage Funds - The City is split into numerous drainage areas by th City's Master Drainage Plan (adopted in mid 1980). The stated purpos of these fees is to provide storm drains and flood control measures t specific areas of the. City. Contributions to the Arts Program would be typically considered as part of the drainage control costs. * 0 -. - 2- Park in Lieu Fees - These fees, collected under the State Subdivision Map Act, allow the City to collect fees from developers in lieu of accepting land dedication. These fees may be used to purchase land or develop parks within the park area in which they were collected. Funding for art objects which become part of a specific park could be considered as reasonable expenditures of these funds, however, a contribution to an Arts fund for use anywhere in the City would not generally be acceptable. Public Facilities Fees - This fund, created by Council Policy #17, has been established to provide a funding vehicle for infrastructure proje required because of new development. In 1982 a list of projects to be funded by this fee was presented to Council as part of the Public Facilities Monitoring System report. Funding for the arts specificall related to these projects could reasonably be provided by this fund, b funding for arts in general is not included in the Council policy or b the PFMS listing of projects. Sewer Captial Fees - Section 13.10.030 of the Municipal Code specifies that the City may charge a $1000 per equivalent dwelling fee for conne to the sewer system. Generally this includes sewer lines, pump statio and improvements to the Encina sewer plant. Contributions to the arts program associated with improvements of facilities other than those owned or operated by the City for sewer purposes would be difficult. The above list of negatives is not intended to inhibit the City's ability t\ fund the arts program. On the contrary, it is listed to point out that the City can avoid many problems that could be associated with funding the arts by turning our attention to the unrestricted sources available to the City. These sources are the General fund, General Capital Construction fund, and Revenue Sharing fund. The General fund, although available, is typically designated €or other services. However, it could be used as a source of funding. The Revenue Sharing fund is committed to the Safety Center develo] ment (or has been in the past) and may not even exist past 1987, if the federal government does not take positive action soon. The best source of General Purpose funds, not otherwise committed, is the General Capital Construction fund. This fund is the accumulation of the surplus of the General fund set aside for future capital improvements. These funds are thought of as tax dollars and are not restricted by any Council policy, ordinance or practice. Staff's recommendation is that Council approve the transfer of $156,000 fron the General Capital Construction fund as defined in Option I to the Arts fur for public works of art €or 1985-86 and continue this practice in future yer as we adopt each capital budget. I would be pleased to help-explain any of my comments to the City Manager 01 / I ,I 1' 1 d) e -r _., April 21, 1986 TO : James Elliott, Finance FROM: Connie Beardsley, Arts FUNDING FOR THE ARTS The possibilities for public art in Carlsbad are many. Works of art com- monly are-defined as follows: All forms of original creations of visual art, including but not limited to: painting of all media, including both portable and permanently affixed works, such as murals; sculpture which may be in the round, bas-relief, high relief, mobile, fountain, kinetic, electronic, etc., in any material or combination of materials; other visual media including, but not limited to, prints, drawings, stained glass, calligraphy, mosaics, photography, clay, fiber and textiles, wood, metals, plastics, or other materials or combination of materials, or crafts, or artifacts. This means that the 1% of the Capital Improvement Program can be used for works of art such as a large outdoor sculpture, murals, or paintings; or it can be used to bring in temporary exhibits for Carlsbad residents, e.g. a sculpture exhibit in a park, or to start a collection for a muni- cipal art gallery, or a combination of ideas. The newly formed arts commission has met once , and therefore, has not yet recommended a policy, direction or focus for these funds to the council. The sum of $156,000 is sufficient to implement a strong public art program, but is not excessive. Materials used in sculpture, for example, are expensive. Engineering stated that to color the concrete for the proposed seawall (not including texturing and design fees) would cost $40,000. Administrative costs for the public art program include artists fees, competition costs if there is one, transportation fees, education materials, and panelist honoraria. Close to home the City of San Diego expects to receive $300,000 - $500,000 annually for their public art program. The City of Santa Monica received $139,000 last year for their 1% program and expects to receive over $200,000 next year. Elsewhere, the City of Sacramento has increased their ordinance to 2%, and Portland, Oregon has increased theirs to 1.33%. Attached is a partial list of California public art projects funded in part by the National Endowment for the Arts from 1972-1980. I have included # * * ,* - Page 2 this to give you an idea of costs involved for public works of art, these costs having increased since 1980. Alternative No. 1 gives the maximum flexibility in types of projects the city is able to fund, and it gives greater latitude should special opportunir arise. Should the appropriate opportunity not arise in a given year the fun( will roll over and will be available for a following year. This creates a stable base on which to build should funds become scarce in future years. I1 is important to have this allocation in the Arts Commission Fund this year. Alternative No. 3 permits the least flexibility. Many projects require that the artist work with the Engineering Department and architect during plan development, e.g. a public art project that integrates stained glass into bu: construction. In this case waiting to appropriate 1% for art at the contraci award stage would make art integrated with building construction an impossib To wait until the contract is awarded to determine if funds are available, a what amount, is toolate and precludes this whole category of projects. For the above reasons I recommend Alternative No. 1. CSB/vs