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CITY COUNCIL AGENDA ITEM NO. 9

Meeting Date: July 26, 2005

Subject/Title: Adopt a Resolution for a public art fee letter of agreement between the City of Brentwood and D.R. Horton for payment of the public art fee at Granville Estates, Subdivision #8724, and authorize the City Manager to sign said letter and amend the CIP project sheet for Granville Estates Public Art.
(C. Bronzan/R. Burr-Siegel)

Prepared by: Rebekah Burr-Siegel, Arts Manager

Submitted by: Craig D. Bronzan, Director of Parks and Recreation

RECOMMENDATION
Adopt a Resolution for a public art fee letter of agreement between the City of Brentwood and D.R. Horton for payment of the public art fee at Granville Estates, Subdivision #8724, authorize the City Manager to sign said, letter and amend the CIP project sheet for Granville Estates Public Art.

PREVIOUS ACTION
On September 9, 2003, City Council approved Section 2.44.180 Public Art, in principal and on September 23, 2003 approved the fee schedule committing one percent of the cost of capital investment projects to art and four tenths of one percent for residential development which became effective on July 1, 2004.

On May 24, 2005 City Council approved a professional services agreement with Scott Runion for the public art element for the Granville Estates project by D.R. Horton, Subdivision #8724 and authorizing the City Manager to sign said agreement.

BACKGROUND
The percent for art requirement on residential projects is 4/10s of 1% of the building valuation if art is included in the project.

When the public art guidelines were approved by Council there were three options available to private developers of residential projects. They were:
1. Contribute four tenths of one percent of the building valuation of each house at the time of building permit. The City retains twenty percent of the four-tenths of one percent for public art program administration and the builder retains eighty percent of the four-tenths of one percent for public art in or near their development. In this case, the artist(s) would contract directly with the developer/builder or a contractor of the builder.
2. Contribute four tenths of one percent of the building valuation of each house at the time of building permit. The City would retain the full four-tenths of one percent for public art program administration and the City would contract directly with the artist(s) for the work.
3. Contribute five tenths of one percent of the building valuation of each house at the time of building permit and not be obligated to include public art in or near their development. In this case, the fee is deposited into the Municipal Art Fund to be used for public art within the City as recommended by the Arts Commission and approved by City Council.

With all above options, the percent for art is divided further. Twenty percent of the four (or five) tenths of one percent goes towards the administration of the public art program. Eighty percent goes to pay for the actual art. In this case, 80% of the funds received to date is $72,640 but the artist’s proposed budget (and professional services agreement approved by Council on May 24, 2005) was for $71,000.

D.R. Horton (Subdivision #8724), is the first developer/builder to opt for number 2 stated above. Through this process, staff has established that this option is problematic. Since the money received for public art is not taken until the building permits are pulled there is a zero balance in that project fund to pay any of the initiating costs of the project. All public art projects require a schedule of payments over the course of the project. The public art guidelines will be revised and brought back to City Council for approval at a later date.

To resolve this situation, and in order to complete the public art project on schedule, instead of paying the four tenths of one percent at building permit, D.R. Horton, has made an up-front payment of $90,800 to the City for the estimated public art fee on subdivision #8724. If the actual percent for public art based on valuation is greater than $90,800 staff has drafted a public art fee letter of agreement for D.R. Horton to pay the City the difference between the up front payment and the percent for art fee calculated on valuation. The City will keep track of the public art fee and if it reaches a total amount greater than the up-front payment of $90,800, the percent for art fee will be collected on the remaining building permits.

FISCAL IMPACT
The project sheet has been amended to reflect that this is now a City project.

This project and related administrative costs will be paid by the developer through the public art ordinance. The estimated yearly maintenance costs of $500 per year will be paid by the project lighting and landscape district (LLD). No additional funds are needed at this time.

Attachments:
Resolution
Draft Public Art Fee Letter of Agreement
Site Map
Amended CIP sheet

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD TO ADOPT A RESOLUTION FOR A PUBLIC ART FEE LETTER OF AGREEMENT BETWEEN THE CITY OF BRENTWOOD AND D.R. HORTON FOR PAYMENT OF THE PUBLIC ART FEE AT GRANVILLE ESTATES, SUBDIVISION #8724, AND AUTHORIZE THE CITY MANAGER TO SIGN SAID LETTER AND AMEND THE CIP PROJECT SHEET FOR GRANVILLE ESTATES PUBLIC ART.

WHEREAS, the Public Art Ordinance was adopted and fee scheduled approved committing 1% of the cost of capital investment projects to art and four tenths of one percent for housing development which became effective July 1, 2004; and

WHEREAS, D.R. Horton has made an up-front payment of $90,800 to the City for the estimated public art fee on subdivision #8724; and

WHEREAS, staff has drafted a public art fee letter of agreement to be signed by the City Manager to pay the City the difference between the up front payment and the actual percent for art fee calculated on valuation; and

WHEREAS, it is necessary to amend the CIP sheet for Granville Estates (Subdivision #8724), public art.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood to adopt a Resolution for a public art fee letter of agreement between the City of Brentwood and D.R. Horton for payment of the public art fee at Granville Estates, Subdivision #8724, and authorize the City Manager to sign said letter and amend the CIP project sheet for Granville Estates Public Art.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 26th day of July, 2005 by the following vote:

_____________________________
Mayor

ATTEST:

__________________________________
Cynthia Garcia
Interim City Clerk
 

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