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ORD 2015-15 RELATING TO FUNDING OF PUBLIC ARTORDINANCE NO. 2015 -15 AN ORDINANCE of the City of Bainbridge Island, Washington, relating to funding of public art; amending Section 3.80.020 of the Bainbridge Island Municipal Code (BIMC) to revise the definition of "Project" to exclude water, sewer, and storm and surface water management facilities, and to require that appropriations for qualifying municipal capital projects include two percent for payment directly to the public art account. WHEREAS, the Court of Appeals of Washington, Division 1, in Okeson, et, al v. the City of Seattle, 130 Wash. App 814 (2005) (hereafter "Okeson") held that art projects funded with electrical utility's funds are required to have a sufficiently close nexus to the primary purpose of furnishing electricity to the ratepayers; and WHEREAS, the rule, above, articulated in Okeson is also applicable to a water utility, sewer utility, and storm water management utility and public art funded from such utilities must bear a sufficient nexus to the furnishing of water, sewer, or storm water services to the utility ratepayers; and WHEREAS, the City desires to eliminate the risk of utility ratepayer allegation of improper use of utility funds and therefore wishes to eliminate water, sewer, and storm water projects for the definition of "Project" for purposes of calculation of two percent of a project's capitalized costs; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Section 3.80.020 of the Bainbridge Island Municipal Code is hereby amended to read as follows: 3.80.020 Cultural resources subfund. A. Creation. There is established in the city treasury a fund designated the City of Bainbridge Island public art account. All funds authorized or appropriated pursuant to this chapter shall be deposited into and maintained in the public art account. Expenditures from the public art account shall be made at the sole discretion of the city council, except as provided otherwise in this chapter or Chapter 3.82 BIMC. The public art account shall be administered by the city's finance director. B. Definitions of Project. "Project" means all capital municipal construction or improvement projects or portions of projects, paid for wholly or in part by the city, including: 1. Construction or renovation of any city street or sidewalk; and 2. Construction, renovation or remodel of any public park, building, parking facility or any portion thereof within the city limits; "Project" for purposes of this section shall not include construction of sewer, water, or storm and surface water management facilities. C. Source of Funds. 1. All authorizations and /or appropriations for capital municipal construction projects shall, whenever legally permitted, include an amount equal to two percent of the total capitalized project cost, to be used for the selection, acquisition and /or installation of works of art to be placed in, on, or about appropriate City public facilities. 2. In computing the amount to place in the public art account, the Project's capitalized costs to the city shall include actual construction costs, architectural and engineering fees, project administration, site preparation, contingency allowances, capitalized project costs of city staff time spent on the project, and any other capitalized amounts paid by the city to third parties in connection with the project. 3. The project's capitalized costs shall not include land or right -of -way acquisition, financing, furnishings, fixtures or equipment. 4. The Project's capitalized costs to the city shall not include any portion of the Project's cost which is not funded by the city. The City's contributions to the public art account pursuant to this chapter may include developer art contributions if the contributions have been approved by the designated agency. 6. Fund transfers to the public art account will occur as part of the annual year -end financial process, after project close -out. 7. In the event any law, rule or regulation establishing a source of funds for a Project prohibits, limits or excludes art as a proper expenditure of funds on the part of any other entity participating in the cost of the Project, then the amount of funds acquired from such source shall be limited or excluded to the extent required by law in computing the amount to include in the authorization or appropriation for the Project . D. Additional Consideration for Capital Facility Projects. As part of project planning and design for new capital facility projects (for example buildings, parks, trails), the City staff will identify whether the proposed facility project 2 is an appropriate facility to include public art elements. These public art elements may be either integrated Artist Made Building Parts (AMBP) or free - standing artwork. If the proposed facility project is identified as an appropriate facility to include public art elements, the City Council will determine during project design phases whether to incorporate AMBP, or free - standing artwork, or both. At that time, the City Council will also determine the amount of expenditure for the project's public art elements, and whether the proposed AMBP and /or free - standing artwork will be supported by funds from the public art account, or by general city funds, or by some combination of funding sources. E. Maintenance. A listing of existing public art work is provided in Appendix 1, City of Bainbridge Island Public Art Collection. The list shall be revised administratively from time to time as new public art projects are approved by the city and the public art committee. All artwork in the city collection is designated as either free - standing, or as an Artist Made Building Part (AMBP). These AMBP become part of the facility in which they are installed. 1. To the extent possible, routine maintenance of all artwork, both free- standing and AMBP, will be completed by City staff without cost to the public art account. 2. When required, specialized services to maintain, restore, renovate, illuminate or relocate AMBP shall be supported with general city funds. 3. When required, specialized services to maintain, restore, renovate, illuminate or relocate free - standing artwork shall be supported with the public art account. 4. Periodically, the city may engage specialized services to review and assess the condition and maintenance plan for the public art collection. The cost for this periodic assessment shall be supported by the public art account. F. Any funds placed in the public art account, which are not spent, shall be carried over automatically from year to year. Upon the approval of the city council and at the request of the designated agency, funds placed in the public art account pursuant to this chapter may be transferred to an arts and humanities account in the cultural resources subfund. G. Whenever it determines that the prudent management of city financial priorities or other significant public interest would be served, the city council may, by motion at a city council meeting, suspend city contributions to the public art account. Section 2. This ordinance shall take effect and be in force five (5) days from its passage, approval, and publication as required by law. 3 PASSED BY THE CITY COUNCIL this 16th day of June, 2015. APPROVED BY THE MAYOR this 16th day of June, 2015. Y. va&ve'--1 Anne S. Blair, Mayor ATTEST /AUTHENTICATE: %,,, l' - 1(13? 0 4 _. Rosalind D. Lassoff, CMC, City Clerk FILED WITH THE CITY CLERK: May 28, 2015 PASSED BY THE CITY COUNCIL: June 16, 2016 PUBLISHED: June 19, 2015 EFFECTIVE DATE: June 24, 2015 ORDINANCE NUMBER: 2015 -15 4