Staff Report
PREPARED BY : RYAN BAKER
Library Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ●A 40 8 -354 -68 32
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/19 /2018
ITEM NO: 1 6
D ATE : JUNE 19, 2018
TO : MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: RECEIVE THE ARTS AND CULTURAL COMMISSION’S PUBLIC BENEFIT
ASSESSMENT FOR PUBLIC ART RESEARCH STUDY AND PROVIDE
DIRECTION ON THE COMMISSION’S RECOMMENDATION TO PREPARE AN
ORDINANCE DESIGNATING ONE HALF OF ONE PERCENT OF ALL PRIVATE
BUILDING PROJECTS WITH TOTAL CONSTRUCTION COSTS GREATER THAN
$200,000 FOR FUNDING PUBLIC ART PROGRAMS IN THE TOWN
RECOMMENDATION :
Receive the Arts and Cultural Commission ’sA Public Benefit Assessment for Public Art Research
Study and p rovide direction on the Commission’sArecommendationAtoAprepareAanAordinanceA
designating one half of one percent of all private building projects with total construction costs
greater than $200,000 for funding public art programs in the Town.
BACKGROUND :
This report is the result of the work of the Arts and Cultural Commission addressing the
Strategic Arts Plan goal of exploring funding options to establish an ongoing arts funding
source.
In August of 2015 the Arts and Cultural Commissio n began a strategi c planning process to
create a public arts plan and develop public art goals. At the January 19, 2016 Town Council
m eeting, Council received an update on the Commission’s strategic plan, approved the art plan
goal areas and voted to allocate $5,000 to the Commission to continue the strategic planning
process. The three major identified goals included public art, funding, and community
engagement and outreach.
PAGE 2 OF 3
SUBJECT: RECEIVE THE ARTS AND CULTURAL COMMISSION’S PUBLIC BENEFIT
ASSESSMENT FOR PUBLIC ART RESEARCH STUDY AND PROVIDE DIRECTION
ON THE COMMISSION’S RECOMMENDATION TO PREPARE AN ORDINANCE
DESIGNATING ONE HALF OF ONE PERCENT OF ALL PRIVATE BUILDING
PROJECTS WITH TOTAL CONSTRUCTION COSTS GREATER THAN $200,000 FOR
FUNDING PUBLIC ART PROGRAMS IN THE TOWN
J UNE 19, 2018
S:\COUNCIL REPORTS \2018 \06 -19 -18 \17 Arts Assessment \Staff Report.FINAL.docx 6/14/2018 11:26 AM
BACKGROUND (Continued):
The Arts and Cultural Commission created s ubcommittees to further develop sub -goals within
each area . The s ubcommittees reported on progress and facilitated discussion at subsequent
Arts and Cultural Commission meetings. At the April 18, 2017 Town Council meeting, the
Commission presented the possibility of investigati ng a development assessment fee for arts
funding as one of two priority goals .
DISCUSSION :
Since that time, t he Commission began investigating successful public arts funding programs in
other municipalities and determined that implementing a potential co mmercial or residential
development assessment fee, often referred toAasAaA“percent -for -art”Afee,AwasA a common basis
for creating public arts funding.
The Commission researched 23 cities of various sizes that had implemented some form of
development asse ssment focusing on understanding the details of such programs. The
research done by the Commission is contained in the Public Benefit Assessment for Public Art
Research Study (Attachment 1).
Based on this study , the Commission has concluded that adopting a similar model of
development assessment fees through an ordinance process would be successful for the Town
of Los Gatos . Based on its research, the Commission recommends preparing an ordinance that
would assess a development fee set at one half of one percent (0.5 %) of the total cost of
private building projects with total construction costs greater than $200,000 to be allocated for
public arts funding . The Commission is not recommending any development assessment on
public construction projects.
If the Council is in favor of considering theA rtsAandACulturalACommission’sArecommendation ,
funding would need to be allocated to complete necessary next steps for s taff to determine
feasibility. These steps at minimum would include a legal analysis , comple tion of any required
n exus study for new impact fees, and a financial analysis prior to the development of an
ordinance .
PAGE 3 OF 3
SUBJECT: RECEIVE THE ARTS AND CULTURAL COMMISSION’S PUBLIC BENEFIT
ASSESSMENT FOR PUBLIC ART RESEARCH STUDY AND PROVIDE DIRECTION
ON THE COMMISSION’S RECOMMENDATION TO PREPARE AN ORDINANCE
DESIGNATING ONE HALF OF ONE PERCENT OF ALL PRIVATE BUILDING
PROJECTS WITH TOTAL CONSTRUCTION COSTS GREATER THAN $200,000 FOR
FUNDING PUBLIC ART PROGRAMS IN THE TOWN
J UNE 19, 2018
S:\COUNCIL REPORTS \2018 \06 -19 -18 \17 Arts Assessment \Staff Report.FINAL.docx 6/14/2018 11:26 AM
FISCAL IMPACT :
The potential i mpact to the G eneral F und to conduct the legal analysis of proposed
development fees, n exus study, and financial analysis is estimated to be approximately
$20,000. This work is not programmed in the Fiscal Year 2018/19 Operating Budget . If Council
is interested in pursuing these studies, staff recommends that the Council consider a budget
adjustment at the November 6, 2018 meeting with the First Quarter Budget Report.
ENVIRONMENTAL ASSESSMENT :
This is not a project defined under CEQA, and no further action is required.
Attachment s :
1. Arts and Cultur e Commission ’s Public Benefit Assessment for Public Art Research Study
2. Public Comments received through 11:00 a.m. June 14, 2018