Title
Discussion Concerning Contribution Levels to the Public Art Fund Depending and Recommendation to Amend the Public Art Ordinance to Allow the Public Art Fund to be used for Deaccession of Artwork
Body
To: Honorable Chair and Members of the Public Art Commission
BACKGROUND
Alameda Municipal Code Section 30-98 Public Art in New Commercial, Industrial, Residential and Municipal Construction (Ordinance) requires that major development projects dedicate 1% of development costs to on-site public art. The Ordinance also allows an applicant to pay an equivalent amount in lieu of providing the art on-site. Any in-lieu fees collected are deposited in the dedicated Public Art Fund (Fund). The Fund can then only be used by the City to provide or support public art.
In 2017, City Council approved an amendment to the Ordinance, which included the removal of three major items, among other changes:
• the $150,000 cap on the maximum public art allocation,
• the requirement for public art to focus on Alameda’s historic and maritime traditions, and
• staff administrative and maintenance costs as an allowable use for the Public Art Fund.
In April of 2019, the Public Art Commission (PAC) identified increasing the balance of the Fund as one of its top priorities, with the goal of increasing funding opportunities for public art in Alameda.
In March and August of 2020, the PAC recommended the following changes to the Ordinance:
• Allow the Fund to be used for conservation and maintenance of public art.
• Require developers to declare their intention to install on-site artwork or contribute to the Fund prior to receiving planning approvals, and clarify that, after on-site artwork is reviewed and approved by the PAC, any change in location will require PAC approval.
• Revise the language to clarify that the maintenance agreement shall be reflected in the conditions of approval and recorded against the property prior to the issuance of the first certificate of occupancy.
• Remove the requirement that cultural arts grants can only go to non-profit organizations, for grants under $2,000.
• Specify that City Council approval is needed only for Fund expenditures that exceed the purchase authority of the City Manager.
In August of 2020, PAC also asked that the topic of required contributions be considered prior to approval of the changes and recommendation to City Council.
DISCUSSION
Below are staff recommendations on additional potential changes to the Ordinance.
Changes to the Required Contribution
Currently, developers have the option of contributing 1% of building development costs to the acquisition and installation of on-site artwork, or of depositing an equivalent amount in the Fund. This amount is the same regardless of the type of development (i.e. commercial vs. residential, etc). In previous meetings, the PAC has expressed an interest in increasing public art funding in the City of Alameda, and in particular to increasing contributions to the Fund. Potential options include:
• Requiring different program contributions for on-site vs. in-lieu contributions. For example, the PAC may choose to reduce the required in-lieu fund contribution from 1% to .8% of development costs to encourage deposits to the Fund. One example of this approach is the City of Berkeley’s public art ordinance, which uses a similar tiered requirement: 1.75% for onsite public art, and .8% for in-lieu contributions (Exhibit 1).
• Require different program contributions for residential and commercial construction. This may include raising the public art requirement for commercial development, while keeping the requirement for residential development at 1% of development costs, in order to raise more public art funds. Staff research located two public art programs in the East Bay that offer differing program contributions for commercial and residential development: both Oakland and Emeryville require a 1% public art contribution from commercial development, and 0.5% from residential. City staff were unable to locate other cities following a similar model, but with higher percentage requirements, at this time. Exhibit 1 compares East Bay cities program contributions for residential and commercial.
• Any other change in developer contribution recommended by the PAC.
Staff Recommendation: Staff does not recommend increasing the public art requirement for development in Alameda above 1% at this time.
The majority of cities surveyed have public art requirements set at or below 1% of development costs. Several nearby cities, including San Leandro and Hayward, do not have any public art requirement. In order to remain competitive in attracting new development, it is important that Alameda’s development fees be comparable to those of our neighboring cities. Reasonable development fees help to support the development of new residential projects in Alameda, providing more affordable and market-rate housing options to our community. In addition, new commercial development provides local jobs, reduces the need for off-island transportation, supplies amenities to local residents and workers, and contributes to the local tax base.
If the PAC wishes to increase contributions to the Fund, one alternative would be to introduce different program contributions for on-site vs. in-lieu contributions (i.e. 1% for on-site artwork, or .8% for in-lieu contributions.
Include Deaccession of Artwork as an Allowed Use of the Public Art Fund.
Deaccession refers to the removal of a work of art from a collection, including municipal art collections. While state and federal law require substantial efforts to find a new home for such artwork, including the sale of the artwork, return to the artist at the artist’s expense, or donation to a public or private entity at the expense of the new owner, in some cases the artwork may have to be removed and disposed of at the City’s expense - particularly if the work requires restoration in excess of its market value, or is in such a deteriorated state that restoration is infeasible.
Staff Recommendation: Staff recommends including deaccession of artwork as an allowed use of the Fund, as part of a holistic approach to the City’s public art collection that includes creation, maintenance, conservation, and - when needed - deaccession of public artwork. Staff also recommends the creation of a deaccession policy be considered as part of the PAC annual prioritization and planning efforts.
RECOMMENDATION
Approve amendments to the Public Art Ordinance to allow the Public Art Fund to be used for deaccession of artwork and recommend adoption by City Council.
Respectfully submitted,
Lois Butler, Economic Development Manager
By,
Amanda Gehrke, Development Manager
Exhibits:
1. Summary of Public Art Requirements, Select Bay Area Cities
2. Revised Public Art Ordinance (Redline)