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FY 2021-22 Art in Public Places (APP) Annual ReportCity of La Quinta CONSENT CALENDAR ITEM NO.5 CITY COUNCIL MEETING December 20, 2022 STAFF REPORT AGENDA TITLE RECEIVE AND FILE FISCAL YEAR 2021/22 ART IN PUBLIC PLACES ANNUAL REPORT RECOMMENDATION Receive and file the Fiscal Year 2021/22 Art in Public Places Annual Report. EXECUTIVE SUMMAR` • 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 2021/22. • 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. 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: ✓ Cost of public art and installation; ✓ Cost to purchase or lease art sites; ✓ 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 and installation 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. 57 • 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 administrative costs. During 2021/22, APP funds were used to purchase art pieces, paint art wall murals, and maintain and preserve art pieces as detailed in Attachment 1. During 2021/22, the City installed an art mural called "Bird Song" created by Artist Nathan Frizzell. The mural is pictured to the right and is located at the Cultural Campus on Avenida Montezuma. Each year this report is also provided to the Desert Valley Builders Association (DVBA), the Building Industry Association (BIA), and the Gas Company. The City received a letter of satisfaction from the DVBA (Attachment 2). To date, no other correspondence has been received regarding this report. ALTERNATIVEF As this report is a requirement of the Municipal Code, staff does not recommend an alternative. Prepared by: Claudia Martinez, Finance Director Approved by: Jon McMillen, City Manager Attachments: 1. Art in Public Places FY 2021/22 Annual Financial Report 2. Desert Valley Builders Association Review ATTACHMENT 1 City of La Quinta Art in Public Places (Fund 270) FY 2021/22 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. Beginning Ending Fund Balance Fund Balance Account Description at 7/1/2021 FY 21/22 at 6/30/2022 Revenues & Other Sources: Developer fees 158,972 Interest income (19,141) Transfers In from the General Fund 50,000 Total Sources $ 189,831 Expenditures & Other Uses Art Purchases 53,253 Maintenance of Public Art 54,817 Project Administration Transfers Out for Construction Art Project 12,678 Total Uses 120,748 Total Available $ 764,614 $ 69,083 $ 833,697 Two Year Test Using First In First Out Method Beginning Revenues Summaryof Funds Fund Balance Collected Expenditures Committed Unspent June 30,2018 550,334 43,391 84,699 522,000 (12,974) June 30,2019 509,026 119,733 92,512 760,000 (223,753) June 30,2020 536,248 197,457 41,679 697,200 (5,174) June 30,2021 692,026 135,933 63,345 729,200 35,414 June 30,2022 1 764,614 1 189,831 1 120,748 1 766,522 1 67,175 Total Revenue For Last Five Years 1 1 $ 686,345 1 $ 402,983 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 21/22 Committed % Complete* % funded with fee Sculpture Restorations and Maintenance 54,817 1000/0 1000/0 Acknowledgement Plaques and Signs 160 100% 100% Bird Song art mural, By: Nathan Frizzell 16,592 100% 100% Wheels of Fortune LQAC artwork, By: Justin Coopersmith 2,000 - 100% 100% LQ Dip-N-Dots LQAC artwork, By: Johnny Ha 5,000 - 100% 100% Maori metal sculpture art purchase, By: Josh Hirt 5,500 - 100% 100% Gold Star Family Monument art purchase deposit, By: CJ Rench 24,000 - 100% 100% 111205 Dune Palms Bridge Improvements - 193,965 13% 1% 151603 La Quinta Village Complete Streets - 88,235 95% 1% 201608 SilverRock Event Space 12,678 302,322 96% 4% 201709 Jefferson/Avenue 53 Roundabout - 5,000 10% 0.19% FY 2022/23 Budget for Art Purchases and Maintenance - 1 177,000 17% 100% Total 120,748 1 766,522 * Percentage completed as of June 30, 2022 59 m ATTACHMENT 2 2022 BOARD OF DIRECTORS PRESIDENT Todd I -looks Agua Caliente Band of Cahuilla Indians Immediate Past President Deborah McGarrey Southern California Gas Company Is' VICE PRESIDENT Tom Dubose Dubose Design Group, Inc. SECRETARYITREASURER Pedro Rincon Osborne Rincon CPAs VICE PRESIDENT OFASSOCIATES Allan Levin Allan Levin & Associates CHIEF EXECUTIVE OFFICER Gretchen Gutierrez DIRECTORS Fred Bell/2022 PAC Chairman Nobell Energy Solutions Brian Benedetti Brian Benedetti Construction Mark Benedetti Dede Callanan North American Title Mario Gonzales GI-lA Companies Joe Hayes First Bank Jeremy Roos FreeVolt Dave Lippert Lippert Construction, Inc Paul Mahoney PMA Advertising Bruce Maize Robert Green Company Russ Martin Mission Springs Water District Dan Olivier Nethety Mueller Olivier Alan Pace/Programs Chairman Petra GeoSciences Kevin Pillow AC Houston Lumber John Powell, Jr. Coachella Valley Water District Mike Rowe MSA Consulting Phil Smith Sunrise Company Alissa Vatter Fidelity National Title Jeff Wattenbarger Wattenbarger Construction V A desert valleys builders association December 14, 2022 City of La Quinta Claudia Martinez, Finance Director 78-495 Calle Tampico La Quinta, CA 92253 Dear Ms. Martinez, Thank you for providing the Desert Valleys Builders Association with the opportunity to review and comment on the City of La Quinta's 2021122 Annual Art in Public Places Fees. The DVBA is satisfied that the City has met its annual reporting obligations pursuant to City Municipal Code and the Mitigation Fee Act. N .icer 34360 Gateway Drive • Palm Desert • CA 92211 (760) 776-7001 office ® (760) 776-7002 fax www.TheDVBA.org 61 62