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FY 2015-16 Art in Public Places (APP) Annual ReportCity of La Quinta CITY COUNCIL MEETING: December 20, 2016 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2015/16 ART IN PUBLIC PLACES ANNUAL REPORT RECOMMENDATION Receive and file Fiscal Year 2015/16 Art in Public Places Annual Report. EXECUTIVE SUMMARY Per the Municipal Code, the City must expend or commit fees from the Art in Public Places (APP) program within two years of receipt and monies collected must be accounted for in a separate fund. An annual review of administrative expenses is required. There were no administrative expenses for 2015/16. Attachment 1 presents the required analysis; the City has complied with the time limit for expenditure of fees and there are no findings to report. On December 5, 2016 the Desert Valley Builders Association (DVBA) requested additional time to review the report. DVBA had no comments or clarifying question on the APP report. The APP report was submitted to the Building Industry Association (BIA) – Riverside Chapter. The City did not receive any correspondence from the BIA regarding this report. FISCAL IMPACT – None BACKGROUND/ANALYSIS The City’s APP fund is governed by the Municipal Code. Annually, the City must demonstrate that it has complied with the following: A determination whether or not the fees have been committed for use within two years of collection. Fees may be used for: The cost of public art and its installation; The cost to purchase or lease art sites; CONSENT CALENDAR ITEM NO. 7 101 Waterworks, landscaping, lighting and other objects, which are an integral part of the artwork; Frames, mats, pedestals and other objects necessary for the proper presentation of the artwork; Walls, pools, landscaping or other architectural or landscape architectural elements necessary for the proper aesthetic and structural placement of the artwork; Maintaining and repairing artwork; Administrative expenses to otherwise implement the APP program; Endowments; and Art replacement. Review administrative expenses to ensure they were reasonably assessed to implement this program and that they do not exceed five percent of the total funds in the account on July 1 of any year or $25,000 in any fiscal year. If fees collected are not committed for the aforementioned uses, they are returned to the contributor. Staff analyzed APP fund revenues and expenditures, and no reimbursements are due to contributors. There were no excess administrative costs. During 2015/16, the APP funds were used to purchase the following Civic Center art pieces: JK Designs Inc. – On the Count of Three bronze sculpture Bart Aldrich – Beautiful Day, Lost Horizon, and Edge of Forever Damien Jones – Spirit Guardian Water Feature Mark Stephenson – Enchanted Oasis Ricardo Breceda Arroyo –T-Rex, and three Big Horn Sheep Payments were also made toward the Seeley and Jefferson Street roundabout sculptures. The DVBA has reviewed the City’s annual APP report and had no comments on expenditures. The APP report was also submitted to the BIA – Riverside Chapter. The City did not receive any correspondence from the BIA regarding this report. ALTERNATIVES As the report is a requirement of the Municipal Code, staff does not recommend an alternative action. Prepared by: Karla Campos, Finance Director Approved by: Frank J. Spevacek, City Manager Attachment: 1. Art in Public Places FY 2015/16 Annual Financial Report 102 City of La Quinta ATTACHMENT 1 Art in Public Places (Fund 270) FY 2015/16 Annual Report Beginning Ending Account Description Fund Balance FY 15/16 Fund Balance Revenues & Other Sources: Developer fees 39,940 Interest income 7,248 Reimbursements Total Sources 47,187$ Expenditures & Other Uses Art Purchases 93,881 Maintenance of Public Art 19,132 Project Administration - Transfers Out for Construction Art Project 50,000 Total Uses 163,012 Total Available 682,810$ (115,825)$ 566,985$ Two Year Test Using First In First Out Method Summary of Funds Beginning Fund Balance Revenues Collected Expenditures Committed Unspent June 30, 2012 865,493 64,830 60,875 475,325 394,123 June 30, 2013 665,689 53,770 253,573 282,627 183,259 June 30, 2014 677,886 99,190 86,993 271,307 418,776 June 30, 2015 682,810 115,356 110,432 253,768 433,966 June 30, 2016 633,966 47,187 163,012 529,000 (10,859) Total Revenue For Last Five Years 380,333$ 674,885$ 1,812,027$ Result : Two Year Spent or Committed Test Met Future commitments for unspent funds are detailed below. Art in Public Places Expenses and Future Commitments Capital Projects and Expenses FY 15/16 Expenses Committed % Complete % funded with fee Sculpture Restorations and Maintenance 17,806 100% 100% Acknowledgement Plaques and Signs 3,841 100% 100% Veterans Day Event Art Piece Updates 1,240 100% 100% JK Designs Inc. Art Purchase - Civic Center 60,000 100% 100% Herman Design Group - Seeley Roundabout, Count of 3 Art Piece 1,826 100% 100% Bart Aldrich - Civic Center Art Purchase 1,000 100% 100% Damien Jones - Civic Center Art Purchase 4,000 100% 100% Mark Stephenson - Civic Center Art Purchase 4,000 100% 100% Vintage Associates - Seeley Roundabout Maintenance 4,500 100% 100% Ricardo Arroyo - Civic Center Art Purchase 14,800 100% 100% Jefferson Street Roundabout Art Piece and Land 50,000 100% 63% FY 2016/17 Budget for Art Purchases and Maintenance 129,000 2% 100% FY 2016/17 Carryovers for Capital Projects - Dune Palms Bridge 200,000 0%1% Shovel Ready Art Projects 200,000 0% TBD Total 163,012 529,000 The Art in Public Places fund is used to account for fees paid in lieu of acquisition, installation, replacement, maintenance and repair of approved art works at approved sites. The fees are refundable if not expended or committed within two years. 103 104