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HomeMy WebLinkAbout11-09-2023 City Arts Commission Meeting Agenda PacketCITY OF NEWPORT BEACH CITY ARTS COMMISSION AGENDA Newport Beach Central Library 1000 Avocado Avenue, Newport Beach 92660 Thursday, November 9, 2023 - 5:00 PM City Arts Commission Members: Maureen Flanagan, Chair Leonard Simon, Vice Chair Barbara George, Secretary John Blom, Commissioner Melissa Kandel, Commissioner Wayan Kaufman, Commissioner Marie Little, Commissioner Staff Members: Melissa Hartson, Library Services Director Camille Escareal-Garcia, Cultural Arts Assistant The City Arts Commission meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that the City Arts Commission agenda be posted at least seventy-two (72) hours in advance of each regular meeting and that the public be allowed to comment on agenda items before the Commission and items not on the agenda but are within the subject matter jurisdiction of the City Arts Commission. The Chair may limit public comments to a reasonable amount of time, generally three (3) minutes per person. The public can submit questions and comments in writing for the City Arts Commission to consider. Please send them by email to the Library Services Department at ArtsCommission@newportbeachca.gov by Wednesday, November 8, 2023, at 4:00 p.m. to give the City Arts Commissioners time to consider your comments. All emails will be made part of the record. The City of Newport Beach’s goal is to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, we will attempt to accommodate you in every reasonable manner. Please contact Melissa Hartson, Library Services Director, at least forty-eight (48) hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible at (949) 717-3801 or mhartson@newportbeachca.gov. NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the Library Services Department 24 hours prior to the scheduled meeting. I.CALL MEETING TO ORDER II.ROLL CALL III.PLEDGE OF ALLEGIANCE IV.NOTICE TO THE PUBLIC The City provides a yellow sign-in card to assist in the preparation of the minutes. The completion of the card is not required in order to address the City Arts Commission. If the optional sign-in card has been completed, it should be placed in the tray provided. The City Arts Commission of Newport Beach welcomes and encourages community participation. Public comments are generally limited to three (3) minutes per person to allow everyone to speak. Written comments are encouraged as well. The City Arts Commission has the discretion to extend or shorten the time limit on agenda or non-agenda items. As a courtesy, please turn cell phones off or set them in the silent mode. November 9, 2023 Page 2 City Arts Commission Meeting V.PUBLIC COMMENTS Public comments are invited on agenda items. Speakers must limit comments to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for the record. The City Arts Commission has the discretion to extend or shorten the speakers’ time limit on agenda items, provided the time limit adjustment is applied equally to all speakers. As a courtesy, please turn cell phones off or set them in the silent mode. VI.CONSENT CALENDAR All matters listed under CONSENT CALENDAR are considered to be routine and will all be enacted by one motion in the form listed below. City Arts Commissioners have received detailed staff reports on each of the items recommending an action. There will be no separate discussion of these items prior to the time the City Arts Commission votes on the motion unless members of the City Arts Commission request specific items to be discussed and/or removed from the Consent Calendar for separate action. Members of the public who wish to discuss a Consent Calendar item should come forward to the lectern upon invitation by the Chair. A.Approval of Minutes of the October 12, 2023, City Arts Commission Meeting Draft of 10/12/2023 Minutes1. DRAFT OF 10-12-2023 MEETING MINUTES B.Consent Calendar Items Financial Information2. Review of financial information. FINANCIAL REPORT Cultural Arts Activities3. Monthly review of cultural arts activities from the Library Administrative Office for upcoming Library and City arts events and services. CULTURAL ARTS ACTIVITIES VII.CURRENT BUSINESS A.Items for Review and Possible Action Sculpture Exhibition in Civic Center Park - Phase IX4. Staff will update the City Arts Commission regarding the timeline and funding of Phase IX of the Sculpture Exhibition in Civic Center Park. SCULPTURE EXHIBITION PHASE IX STAFF REPORT Date for the 2024 Newport Beach Art Exhibition5. The Newport Beach Art Exhibition Ad Hoc Subcommittee recommends a date for the 57th Annual Newport Beach Art Exhibition. NEWPORT BEACH ART EXHIBITION STAFF REPORT November 9, 2023 Page 3 City Arts Commission Meeting City of Newport Beach Annual Budget Process6. Staff will present the City Arts Commission with an overview of the annual budget process for the City of Newport Beach. CITY OF NEWPORT BEACH ANNUAL BUDGET PROCESS STAFF REPORT ATTACHMENT A B.Monthly Reports Sculpture Garden Docent Tour Ad Hoc Subcommittee7. Chair Maureen Flanagan, Vice Chair Leonard Simon, Commissioner Melissa Kandel Utility Box Art Pilot Program Ad Hoc Subcommittee8. Vice Chair Leonard Simon, Chair Maureen Flanagan, Commissioner Melissa Kandel Newport Beach Arts Foundation Liaison9. Commissioner Barbara George, Chair Maureen Flanagan, Vice Chair Leonard Simon Historical Resources Liaison10. Commissioner John Blom VIII.CITY ARTS COMMISSION ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM). IX.PUBLIC COMMENTS ON NON-AGENDA ITEMS Public comments are invited on non-agenda items generally considered to be within the subject matter jurisdiction of the City Arts Commission. Speakers must limit comments to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for the record. The City Arts Commission has the discretion to extend or shorten the speakers’ time limit on agenda or non-agenda items, provided the time limit adjustment is applied equally to all speakers. As a courtesy, please turn cell phones off or set them in the silent mode. X.ADJOURNMENT CITY OF NEWPORT BEACH CITY ARTS COMMISSION MINUTES Newport Beach Public Library 1000 Avocado Avenue, Newport Beach, CA 92660 Thursday, October 12, 2023 – Regular Meeting City Arts Commission Members: Maureen Flanagan, Chair Leonard Simon, Vice Chair Barbara George, Secretary John Blom, Commissioner Melissa Kandel, Commissioner Wayan Kaufman, Commissioner Marie Little, Commissioner Staff Members: Melissa Hartson, Library Services Director Camille Escareal-Garcia, Cultural Arts Assistant DRAFT I. CALL MEETING TO ORDER Chair Maureen Flanagan called the City Arts Commission meeting to order at 5:00 P.M. II. ROLL CALL Commissioners Present: Chair Flanagan Commissioner Blom Commissioner Kandel Commissioner Kaufman Commissioner Little Vice Chair Simon (Arrived at 5:04) Commissioners Absent: Secretary George (excused) Staff Present: Melissa Hartson, Library Services Director Francine Jacome, Administrative Support Specialist III. PLEDGE OF ALLEGIANCE Chair Flanagan led the Pledge of Allegiance. IV. NOTICE TO THE PUBLIC - Waived V. PUBLIC COMMENTS None 4 City Arts Commission Meeting October 12, 2023 Page 2 VI. CONSENT CALENDAR A. Approval of Minutes of the September 14, 2023, City Arts Commission Meeting 1. Draft of 09/14/23 Minutes Chair Flanagan requested edits, changes or deletions of the minutes. Chair Flanagan noted the following correction: • Handwritten Page 10 – Paragraph 4, Minutes Page 7 revision: “Chair Flanagan assured her the Commission has talked about that with the majority of City Council.” Commissioner Melissa Kandel noted the following correction: • Handwritten Page 6, Minutes Page 3 revision: “Commissioner Kandel added that if they could see the ads, creative, and costs, they can make a better case for needing a bigger ad expense”. Chair Flanagan opened the item for public comment and there were none. Motion made by Commissioner John Blom, seconded by Commissioner Marie Little, and carried (5-0-0-2 with Vice Chair Simon and Secretary George absent) to approve the minutes of the City Arts Commission (CAC) Regular meeting on September 14, 2023, as revised. B. Consent Calendar Items 2. Financial Report Review of financial information. Library Services Director Melissa Hartson referenced Handwritten Page 12 and reported the financials have not changed much from the prior month. There were entries for the September concerts. The Commission discussed alternate options for savings on the sound and lighting, such as having the sound and lighting equipment kept in house and maintained by City staff. Library Services Director Hartson commented that keeping those in house is not cost effective due to the costs for setting up, breaking down, and storage of the equipment. In addition, they have to be sound sensitive to the neighbors across the street. The current vendor is knowledgeable about the way sound carries on the Civic Green and managing noise control. Chair Flanagan noted that the sound and lighting costs were higher than the cost for the entertainment and inquired about going out to bid for other sound engineers. 5 City Arts Commission Meeting October 12, 2023 Page 3 Commissioner Blom suggested staff request new bids for comparison and possibly seek one sound person for all the concerts, also noting many of the bands have their own sound staff. Library Services Director Hartson advised keeping a consistent sound vendor familiar with the Civic Green worked best for the concerts due to the nature of the venue and the neighbors. Chair Flanagan inquired about the sculpture maintenance expense of $825. Library Services Director Hartson responded that was for the quarterly maintenance for Sphere 112. Chair Flanagan reminded staff they had previously discussed reflecting the totals for each account. Commissioner Blom questioned why the City can’t clean the sculptures. Library Services Director Hartson answered that art within the City is at the expense of the Arts Commission, not the City. It is within the purview of the Arts Commission to maintain and oversee the art within the City. Vice Chair Leonard Simon added that the Commission had been down that road and the answers provided were very simple. First, some of the sculptures owned by the City have to be cleaned professionally in order to preserve the piece; second if it’s not in the CAC’s budget, it would be in a different department’s budget, possibly a department that is not familiar with proper maintenance of art. Last year, the CAC had to tap into the maintenance budget for the installation of PHASE VIII which left the maintenance of the art on the back burner. Commissioner Little asked if the maintenance budget can be increased and suggested requesting additional funds for the maintenance of the sculptures. This is an annual struggle. 3. Cultural Arts Activities Monthly review of cultural arts activities from the Library Administrative Office for upcoming Library and City arts events and services. Library Services Director Hartson reported that during September two concerts were hosted and both were very well attended. She was glad they were able to reschedule Tijuana Dogs, the front of the Green was packed with many people dancing. It was a great way to end the Concert on the Green series. There are watercolors on display in the Central Library Gallery. Library Services Director Hartson stated she made an error on the posting of the upcoming Central Library Gallery exhibit. Artist Sherry Marger will not be on display until October 23, 2023. There will be a week in between exhibits. This information is on the Library’s website. The concert season will be complete following the 4:00 p.m. performance of Tiffany Dennis and Cruise Control on Sunday, October 15 in Marina Park. Chair Flanagan opened the item to public comments. 6 City Arts Commission Meeting October 12, 2023 Page 4 Motion made by Vice Chair Simon, seconded by Commissioner Melissa Kandel, and carried (6-0-0-1 with Secretary George absent) to approve the Consent Calendar. VII. CURRENT BUSINESS A. Items for Review and Possible Action 4. Sculpture Exhibition Phase IX Timeline and Funding The City Arts Commission will review and discuss a proposed timeline and funding for Phase IX of the Sculpture Exhibition in Civic Center Park. Library Services Director Hartson reported that currently there is a budget allocation of $135,000 from the City plus the $10,000 commitment from the Arts Foundation for a total of $145,000. Phases VII and VIII are currently exhibiting in Civic Center Park. The rotational aspect of the phases is the most cost-effective way to display art within the City, without having to own or maintain the works. Arts Orange County (ArtsOC) has successfully managed all previous phases, and their proposal for Phase IX was submitted with no change from their previous proposal for Phase VIII. The total for ten pieces would be $119,000. Each of the artists that participate would receive a $5,000 honorarium which brings the total cost for Phase IX to $169,000. This leaves a shortfall in the budget of $24,000. Chair Flanagan requested staff work with ArtsOC to draft an additional proposal. ArtsOC Chief Executive of Operations (CEO), Richard Stein, returned with a proposal for $145,000 for eight sculptures. Breaking that down, it would be $105,000 for Arts OC, $40,000 for the artist honorariums. This falls within the Arts Commission’s budget for the Fiscal Year (FY). ArtsOC drafted a timeline that still keeps the department on track for the deinstallation of Phase VII and the installation of Phase IX, which is critical for staying within budget. Staff are requesting the Arts Commission to review and discuss both proposals and determine how to proceed forward with Phase IX. The ten sculptures proposal includes a request for City Council to approve an additional $24,000; the eight-sculpture proposal keeps the project within the current budget allocation. Vice Chair Simon inquired when the City would be billed for the removal of Phase VII and since that would happen independently of installing Phase IX, and if it would fall under the current budget. Library Services Director Hartson answered the City would be invoiced at the time of deinstallation. Funds are encumbered for Phase VII, which would not go against the current budget. Vice Chair Simon commented that in his review of both proposals he determined there is a considerable difference in the cost per sculpture between the two. For eight sculptures the cost is $18,125 per sculpture. The cost for ten sculptures is $16,900 per sculpture. They submitted the difference per sculpture to ArtsOC and received a response explaining that the management fee for deinstallation and installation is exactly the same for each sculpture. With an understanding of what goes into managing the sculptures, he believes the amount for eight sculptures is too much and they should consider returning to ArtsOC to see if the amount for eight can be decreased. Commissioner Blom commented that the contingency for eight sculptures is $1,500 more than for ten, and he doesn’t understand that difference. 7 City Arts Commission Meeting October 12, 2023 Page 5 Commissioner Kandel noticed the cost to install eight sculptures is $1,000 more than ten sculptures. Vice Chair Simon stated he believes the conversation would ultimately be more effective breaking down the cost per sculpture rather than dissecting each situation and believes there is still room for more negotiation. Commissioner Blom suggested the Commission consider approaching the Phase VII artists to see if any of them would consider loaning their art for one more year should the proposal for eight sculptures be accepted. Commissioner Little expressed concern for accepting the proposal for eight sculptures with regards to how it would affect the cost of returning to a ten-sculpture display in the future; and commented she is completely against installing only eight and felt they should press harder for more funds. Chair Flanagan reported that when she met with the City Manager, her suggestion was for the CAC to go before City Council and make their case. In the Chair’s experience, City Council always wants to know what Plan B is, and also agreed they should request more funds. Commissioner Blom stated he believed they should accept the proposal for eight sculptures this year and ask City Council for more funds in next year’s budget. Vice Chair Simon inquired if the plan to go before City Council is still scheduled for October 24, and indicated they cannot move forward with either plan until that date. Plan A should be requesting the funds for ten sculptures, Plan B would be moving ahead with eight sculptures, Plan C is moving ahead with eight sculptures with an attempt to keep two items of Phase VII for an additional year. Library Services Director Hartson answered that if the Arts Commission approves requesting additional funds, the October 24 City Council meeting is the goal. Vice Chair Simon asked how that would affect the schedule. Library Services Director Hartson directed the Commission to the timeline explaining if they choose to go before City Council and they missed the October 24 date, the next available dates would be November 14 or November 28. Everything after that point is a very tight schedule. Keeping in mind that after they move forward either with eight or ten, they will have to return to City Council after the call for artists. Vice Chair Simon stated if they are able to make the October 24 City Council Meeting requesting more funding, they would be able to work out the details of the project and be ready to submit it to City Council for approval on November 28; and inquired who would contact the Phase VII artists. Library Services Director Hartson answered the contact with the artists would be carried out by ArtsOC. Chair Flanagan asked for public comment. 8 City Arts Commission Meeting October 12, 2023 Page 6 Jim Mosher, Newport Beach resident, provided public comment stating the schedule seems slightly accelerated. If they go before City Council and City Council requests a study session, the result of the study session would be moved forward through the Consent Calendar. He didn’t believe the presentation needed to be presented separately from the contracts. It’s not impossible to present the contracts and the presentation at the same time. Library Services Director Hartson stated staff may not have Plan C prepared in time to appear before City Council once with both the proposals and contracts. Also noting, should Council not approve the $24,000 additional funding, the Arts Commission would need to be okay with submitting Plan B without first discussing it. Vice Chair Simon asked if it would be possible to reach out to the artists in Phase VII prior to October 24. Library Services Director Hartson added it would need to be done well in advance of October 24. Richard Stein, ArtsOC CEO, commented that there would be a process they would have to follow. It would be unfair to pick two artists and request they stay another year, particularly if all the artists happened to agree to that. They would need to determine how the decision would be made to make the two selections. If there is more polling that would take place, that decision would also have to go before City Council for approval. Several years ago, the delays for an upcoming phase led to a decision by the City to extend the existing sculptures for six months and they were paid an additional 15% of the original honorarium. That was additional funds that had to be approved by City Council. Vice Chair Simon stated the easiest way to proceed would be Plan A and Plan B, and to not include Plan C, and agreed with Commissioner Little that choosing Plan B would be a bad move, adding that he will be out of town for the October 24 City Council Meeting. All Commissioners agreed that there should be a request for more funding from City Council, Commissioner Kaufman believed that while it may make sense to receive more bids, ArtsOC has the experience and knowledge of the program. Chair Flanagan commented that the last time they tried to accept another bid, the bidder didn’t have the knowledge or equipment to follow through. Vice Chair Simon recalled Public Works turned the bid down based on their criteria requirements. Commissioner Kandel suggested it would still be worth going through the bid process to show City Council they tried to lower the cost further. Mr. Stein stated that ArtsOC considers their management fee a fixed component of the bid with all the other components variable. They reconsidered the original bid and after talking to their vendors came up with the second bid for eight sculptures. They would not consider lowering the second bid any further. 9 City Arts Commission Meeting October 12, 2023 Page 7 Motion made by Vice Chair Simon, seconded by Commissioner Little, and carried (6-0-0-1 with Secretary George absent) to present the two proposals from Arts OC to City Council on October 26, 2023, with a request for an additional $24,000. 5. Fiscal Year 2023-24 Cultural Arts Grants Timeline Staff will present an overview of the FY 2023-24 Cultural Arts Grants program and will recommend a timeline. The City Arts Commission will also be asked to approve the due date of the FY 2021-22 Grant Completion Reports. Library Services Director Hartson reported that there is a subcommittee for the Arts Grants and every year the Arts Commission is responsible for reaching out to nonprofit organizations to gain more programming for the community. There is $30,000 budgeted to grants for outside organizations willing to provide arts programming for City residents. There is a priority for grants that include local arts groups located within the City and offering programs to City residents, regional arts groups located within the County and offering programs to City residents, and arts groups located within California and performing or offering programs to City residents. Groups not providing programs to City residents will not be eligible to receive a grant. The timeline is similar to last year’s. They would open the period at the end of October, applications are due at the beginning of the calendar year, the subcommittee will return in February with recommendations for the Arts Commission to approve, with a follow up before City Council at their next meeting after the February CAC meeting. Jim Mosher, Newport Beach resident, provided public comment and referenced an Attachment in the Agenda Packet on Page 22, and suggested staff receive clarity as to the amount allowable within the policy, and why there is no arts reserve fund. Vice Chair Simon inquired if Library Services Director Hartson was aware of the City’s reserve art fund. Library Services Director Hartson answered she didn’t know anything about it but will work with the City’s Finance Director to find out where it is. Vice Chair Simon commented that if there are no reserved art funds, whatever Policy I-10 says has really no effect. Motion made by Commissioner Leonard Simon, seconded by Commissioner Wayan Kaufman, and carried (6-0-0-1 Secretary George absent) to approve the Cultural Arts Grants timeline for Fiscal Year 2023-24. 6. Central Library Gallery Exhibits The Art in Public Spaces Ad Hoc Subcommittee recommends the following artists to exhibit at the Newport Beach Central Library gallery exhibit: Oriana Pointdexter, Lucy Galvin, and Laura Green. Library Services Director Hartson reported the Art in Public Spaces Ad Hoc Subcommittee met to review the applications submitted for display in the Central Library Gallery. The Subcommittee recommended moving forward with three artists: Oriana Pointdexter, Lucy Galvin, and Laura Green. Examples of their works are included in the Agenda Packet as Attachments A, B, and C. 10 City Arts Commission Meeting October 12, 2023 Page 8 Chair Flanagan asked how many applicants were reviewed. Commissioner Little responded it’s an ongoing flow of applicants, so it is always different. In this group there were seven. Motion made by Commissioner John Blom, seconded by Commissioner Marie Little, and carried (6-0-0-1 Secretary George absent) to approve the following artists to exhibit at the Newport Beach Central Library gallery exhibit: Oriana Pointdexter, Lucy Galvin, and Laura Green. 7. Student Art Exhibition Timeline The Student Art Exhibition Ad Hoc Subcommittee recommends a timeline for the 2024 Student Art Exhibition. Library Services Director Hartson reported that it’s that time of year when staff are evaluating another program which happens to involve students (children and teens) within the community. This exhibition has been held for two years, the first year there were ninety submissions, the second year there were 180 submissions. They are looking forward to hosting the exhibition again because they have seen an increase in both submissions and turnout. The subcommittee met and developed a timeline which includes opening the call for entries at the beginning of the calendar year, having a judging period, the winners chosen will return to the Arts Commission for approval, and then be displayed at the Central Library. It’s a great way to extend programming to children. Library Services Manager Rebecca Lightfoot will be working with the Arts Commission and the subcommittee on this project going forward. Chair Flanagan stated that Commissioner George is also on the subcommittee and had indicated she enjoys going to the schools and talking to the head of the art departments to gain more artists and had committed to doing that again this year before the winter holiday vacation. Motion made by Commissioner John Blom, seconded by Commissioner Melissa Kandel, and carried (6-0-0-1 Secretary George absent) to approve the proposed timeline for the 2024 Student Art Exhibition. 8. Revisions to City Council Policies I-9 Through I-12 The City Arts Commission will review the final draft of the Revisions to City Council Policies I-9 through I-12 Ad Hoc Subcommittee’s proposed changes and forward to City Council for review and approval. Library Services Director Hartson reported that in September 2022, City Council initiated a review of the Municipal Code and City Council policies. An ad hoc subcommittee was formed, who in turn requested each Board and Commission form their own ad hoc subcommittee to review the policies within their purview. Council Policies I-9 through I-12 are the policies that fall within the jurisdiction of the City Arts Commission. Each committee was asked to make recommendations for deletions, additions, or language changes. The CAC ad hoc committee is now returning to the CAC for final review of those policies prior to forwarding them to City Council for review and approval. Two policies have recommended changes. The first is I-9, the subcommittee is recommending reinstituting a previous iteration of Council Policy I-9 that is Attachment D in the Agenda Packet. There were small edits to the language of I-11 to clarify information. Staff’s recommendation is 11 City Arts Commission Meeting October 12, 2023 Page 9 to not present the additional language to City Council in this project because City Council has directed subcommittees to delete or reduce language, adding language does not fit within the scope of Council’s direction. Staff recommends submitting the changes made to I-11, and then submitting the additional language to I-9 as a separate agenda item. Vice Chair Simon referenced Handwritten Page 42, second paragraph from the bottom, and inquired clarification of the expiration date mentioned. Library Services Director Hartson explained in the original resolution, the expiration date for Council subcommittee was June 30, 2023. During the April 11, 2023, City Council meeting, Council adopted an extension to that. Director Hartson believed it was extended to June 30, 2024; however, the Council subcommittee is moving forward on this item at an upcoming meeting. Vice Chair Simon commented that City Council Policy I-12 has nothing to do with the Arts Commission. Chair Flanagan agreed, they didn’t feel they needed to comment on that Policy at all. It’s a sister-city item. Vice Chair Simon stated that the Arts Commission is not involved in sister-cities and requested staff inform them of that to avoid any miscommunication. It’s possible it is within the purview of the Library. Also, I-10 needs to be rewritten in today’s environment of reserve funds or no reserve funds. Vice Chair Simon inquired if they have an option not to present any changes. I-9 is the Policy that the Commission wants to add language and staff is recommending they not submit additions at this time. Procedurally, he felt the same should apply to I-9. Library Services Director Hartson responded that if the Commission would also like to revise I-10, because there are no changes to it now, yes that could be submitted to City Council on a future agenda date. Vice Chair Simon indicated that since the final rendition of I-10 is still pending and could possibly end up with a different flavor to the policy. Vice Chair Simon stated there’s a question surrounding the process in which Policies are edited. If I-9 and I-10 are not going to be submitted at this time, that only leaves the minor edits to I-11. Library Services Director Hartson confirmed if that’s what the Commission would like to do there is no problem with submitting only I-11 to the Council. She will ensure they understand that I-11 is the only policy with reductions/deletions per City Council’s direction. The separate items will be submitted to City Council on a future agenda, not the ad hoc committee. Commissioner Blom questioned why the CAC is still meeting when they removed their responsibilities in the 2017 version of the City Council Policies. Library Services Director Hartson explained that the City Arts Commission still has responsibilities that fall under the City Charter. She can bring those back at a future meeting. Library Services Director Hartson added that she was not provided with the information of why the policy was reduced in 2017. 12 City Arts Commission Meeting October 12, 2023 Page 10 Chair Flanagan called for public comment. Jim Mosher, Newport Beach resident, provided public comment stating his recollection when City Council extended the expiration date, there were two separate parts. One was their own Council subcommittee, who he believed will be returning at the November 28 meeting with changes to the entire Municipal Code. Some of what he has seen appears to go against California Code. At a separate charge, some of the Commissions have reviewed some of the policies that were related to them. The way the resolution is read, that’s on an independent track. He doesn’t believe the CAC recommendation goes through City Council’s Policy Review Subcommittee to the Council, and they were asked by June of 2024 to make recommendations about deleting language. Referencing back to the changes in the City Charter made in August 2017, there was no information as to why the changes were made to the policies that are within the CAC’s purview. When he looks at Policy I-11, the policy is about acquisition of art into the City’s art collection. He was looking at Attachment G on Handwritten page 57, and which references Policy I-9 and references art in public places, however I-9 seems to reference outdoor art. The Arts Commission can’t make a recommendation to Council for acquisition of interior art because it doesn’t fit Policy I-9. Consequently, Council put reserved spaces within the policy for the Arts Commission to redo I-9 to make it fit with another policy. In the Charter, the Arts Commission has an ongoing power and duty to make recommendations to the Council anytime to adopt policies that they think are needed for the administration of art in the City. In this effort to reduce words, rather than putting the words back in, the two interact with each other. Saying everything has to be art in public places, and then saying it has to be acquired, doesn’t make sense, when the art in public places seems to refer only to outdoor art. The City doesn’t acquire indoor art, and part of the art inventory is indoor art. The Commission can reduce language at any time. Even with reduced language it doesn’t quite work. Vice Chair Simon read Section 712 of the City Charter listing the responsibilities of the Arts Commission. It’s very broad brush which is why there is a need to create the Policy. The City Charter and the Policies don’t talk with each other. It may be wise to not submit anything, take the time to look at all the policies and redo them according to the responsibilities listed in the City Charter and take that back to City Council for adoption so that they all work with each other. That also requires finding out about the reserve fund. In all of the policies reviewed thus far, some of those components are not present. Also adding that he’s interested in finding out if an ad hoc committee created by the Arts Commission can include a citizen of the city. Library Services Director Hartson responded she would look into that. Motion made by Vice Chair Leonard Simon, seconded by Commissioner Marie Little, and carried (6-0-0-1 Secretary George absent) to not submit a recommendation to City Council/ad hoc committee at this time, redo Policies I-9 and I-11 and submit them to City Council at a later date. B. Monthly Reports 9. Newport Beach Arts Foundation Liaison Chair Flanagan 13 City Arts Commission Meeting October 12, 2023 Page 11 Chair Flanagan reported that the Arts Foundation met and went over how successful Art in the Park was, however, they did not have any financial information. The Arts Foundation discussed plans for next year; and are looking at getting a membership drive going. They will be doing a workshop with an outside consultant on how to work better as a Board. Library Services Director Hartson added that Arts Foundation members Carmen Smith and Pat Jorgenson, who chaired Art in the Park, wanted to extend their thanks to the Commission for their support of Art in the Park. Chair Flanagan reminded everyone to check their emails as that is how they generally correspond with one another. VIII.CITY ARTS COMMISSION ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM) Commissioner Kandel announced she was attending the Newport Beach Film Festival and will attend the Mayor’s reception. Requested future Agenda items included: •Commissioner Blom asked to add an item regarding morepublicity for the Sculpture Garden. •Commissioner Flanagan asked to add the nature docent tours inCivic Center Park. The first one is scheduled for November 8. •Commissioner Simon asked to add Council Policy revisions. Vice Chair Simon requested new Commission business cards be ordered for the new Commissioners if possible. Library Services Director Hartson responded she would look into that. Chair Flanagan commented she would also like name badges ordered for the Commissioners as well. IX.PUBLIC COMMENTS ON NON-AGENDA ITEMS None X.ADJOURNMENT – 6:30 p.m. The next meeting for the City Art Commission is scheduled for November 9, 2023. 14 As of November 1, 2023 ACCT NAME BUDGET DATE VENDOR EXPENSES AVAILABLE NOTES Programming 60,500.00$ 07/07 Alliant Insurance Services 1,834.00 58,666.00 Cultural Arts events insurance 07/14 Office Depot 21.77 58,644.23 Office supplies 07/14 Sully Entertainment Group 3,250.00 55,394.23 The Sully Band (COTG 07-23-2023) 07/21 DJE Sound & Lighting Inc.4,131.11 51,263.12 COTG sound (The Sully Band) 07/28 Lynn Nicholson 3,250.00 48,013.12 Tijuana Dogs (COTG 09-24-2023) 07/31 Gotprint.com 206.69 47,806.43 COTG concert banners 07/31 Gotprint.com 221.73 47,584.70 COTG Rack cards 07/31 Gotprint.com 592.40 46,992.30 Sculpture Exhibition brochures 08/04 DJE Sound & Lighting Inc.4,131.11 42,861.19 COTG sound (Tijuana Dogs) 08/04 Tracy Kiggen 646.00 42,215.19 COTG children's activities (The Sully Band) 09/01 Lynn Nicholson 3,250.00 38,965.19 Boys of Summer (COTG 09-24-2023)09/01 Tracy Kiggen 646.00 38,319.19 COTG children's activities (Boys of Summer)09/01 Tracy Kiggen 646.00 37,673.19 COTG children's activities (Tijuana Dogs) 09/08 DJE Sound & Lighting Inc.4,131.11 33,542.08 COTG sound (Boys of Summer) 09/08 Office Depot 87.91 33,454.17 Sculpture Exhibition supplies TOTAL $60,500.00 $27,045.83 $33,454.17 City Grants 30,000.00$ TOTAL $30,000.00 $0.00 $30,000.00 Professional Services 22,300.00$ 08/17 TAVD Virtual Assistant 159.75 22,140.25 Transcription of Minutes (07/13) 08/17 Crown Building Services 825.00 21,315.25 Sculpture Maintenance08/30 Svartifoss Corp.425.00 20,890.25 Art Installation (Jane Shehane exhibit)09/14 TAVD Virtual Assistant 114.75 20,775.50 Transcription of Minutes (08/10) 10/26 TAVD Virtual Assistant 96.75 20,678.75 Transcription of Minutes (09/10) 10/27 Svartifoss Corp.350.00 20,328.75 Art Installation (Sherry Marger exhibit) TOTAL 22,300.00$ 1,971.25$ 20,328.75$ Sculpture Garden 135,000.00$ TOTAL $135,000.00 $0.00 $135,000.00 Advertising $ 1,340.00 07/31 2S Publishing, LLC.150.00 1,190.00 COTG advertising (07-23-23 Sully Band) 07/31 2S Publishing, LLC.150.00 1,040.00 COTG advertising (07-23-23 Sully Band)07/31 LA Times Media Group 200.10 839.90 COTG advertising (07-23-23 Sully Band)08/31 LA Times Media Group 200.10 639.80 COTG advertising (Postponed 08-20 concert) 08/31 2S Publishing, LLC.150.00 489.80 COTG advertising (Postponed 08-20 concert) 08/31 2S Publishing, LLC.150.00 339.80 COTG advertising (Postponed 08-20 concert) 09/30 2S Publishing, LLC.150.00 189.80 COTG advertising (09-17-23 Boys of Summer) 09/30 2S Publishing, LLC.100.00 89.80 COTG advertising (09-17-23 Boys of Summer) 09/30 LA Times Media Group 200.10 (110.30)COTG advertising (09-17-23 Boys of Summer) 09/30 2S Publishing, LLC.100.00 (210.30)COTG advertising (09-24-23 Tijuana Dogs) 09/30 2S Publishing, LLC.100.00 (310.30)COTG advertising (09-24-23 Tijuana Dogs) 09/30 LA Times Media Group 200.10 (510.40)COTG advertising (09-24-23 Tijuana Dogs) TOTAL $1,340.00 $1,850.40 -$510.40 REVENUES Special Events (NBAE)$ 0.00 TOTAL $ 0.00 BUDGET EXPENSES AVAILABLE Cultural Arts Totals $249,140.00 $30,867.48 $218,272.52 FY 2023-24Cultural Arts Division 11/03/2023 1 of 1 15 CITY OF NEWPORT BEACH CITY ARTS COMMISSION STAFF REPORT November 9, 2023 Agenda Item No. 3 2023 CONCERT AT MARINA PARK The Tiffany Dennis and Cruise Control concert, held on October 15, 2023, at the Marina Park Community Center, was well-received. Children’s activities, provided by ARTovator, included face painting and balloon animals, rounded out this family-fun event. CENTRAL LIBRARY GALLERY EXHIBITS Sherry Marger has been a resident of Southern California since 1978, moving here from the east coast. Trained as an art educator, she taught only briefly before she decided to go into graphic arts and worked designing publications for a Department of Public Health. It wasn't until she was coordinating an international art competition, that she decided that painting was truly her first love. Traveling has inspired her to paint scenes utilizing acrylic paints from photographs that were taken on a variety of her trips to capture scenes from around the world. However, during Covid, since traveling was limited, she spent more time capturing the local scenery and many of the paintings are exhibited here. In addition, there are some iconic views of other locations from around the world. TO: CITY ARTS COMMISSION FROM: Library Services Department Melissa Hartson, Library Services Director (949) 717-3801, mhartson@newportbeachca.gov PREPARED BY: Melissa Hartson, Library Services Director TITLE: Cultural Arts Activities for October 2023 16 CITY OF NEWPORT BEACH BOARD OF LIBRARY TRUSTEES STAFF REPORT 2 of 2 Sherry Marger’s exhibit is on display at the Central Library Gallery from October 23 through December 15. UPCOMING 2023 CENTRAL LIBRARY GALLERY EXHIBITS: • Lucie Galvin (Paper Collages): December 18 - February 9 UPCOMING 2024 CENTRAL LIBRARY GALLERY EXHIBITS: • Oriana Poindexter (Photograms): February 12 – April 5 • Laura Green (Acrylic Paintings): April 8 – May 31 CULTURAL ARTS CALENDER OF EVENTS: City Arts Commission (CAC) meetings are held at 5 p.m. on the second Thursday of each month. • Next meeting – Thursday, December 14, 2023 STUDENT ART EXHIBITION • Call for Entries: January 8 – February 16, 2024 • Exhibition Dates: April 15 – May 17, 2024 17 CITY OF NEWPORT BEACH CITY ARTS COMMISSION STAFF REPORT November 9, 2023 Agenda Item No. 4 DISCUSSION: The Sculpture Exhibition in Civic Center Park is an integral feature of the Newport Beach Civic Center project. The City Arts Commission has determined that a rotating exhibition remains a practical approach to bring sculptures to the City in a cost-efficient manner. ………………………………………………………………………….. The acquisition program that the City Arts Commission developed in 2013 for the exhibition created a model in which pieces are loaned for a two-year period. Sculptors of works chosen for the exhibition are provided with a small honorarium, not to exceed $5,000, to loan their work to the City. The City is responsible for installing the art, while sculptors are responsible for the maintenance and repair of their work. Pieces are rotated into the exhibition annually and displayed for two years. Phases overlap for a one-year period so that 20 pieces are typically on display. Civic Center Park was designed by renowned landscape architectural firm Peter Walker and Partners (PWP). PWP developed a master plan for public art in the park and identified various spots in the park where art, particularly sculpture, could be exhibited. Admission is free and the exhibition continues to be enjoyed by residents and visitors. The exhibition offers the temporary display of public art and allows the City to avoid the obligation and expense of owning public art. The City Arts Commission selects a well-balanced representation of public art that appeals to a diverse audience, while including artistic merit, durability, practicality, and site responsiveness as criteria in the selection. The rotational nature of the exhibit ensures that residents and guests are exposed to a variety of work. ARTS ORANGE COUNTY: The City Arts Commission selected Arts Orange County (ArtsOC) to provide public art coordination and site management services for all previous phases of the Sculpture Exhibition in Civic Center Park after issuing Requests for Proposals in 2013 and 2016. Given their background experience, expertise, and availability, staff is requesting a Professional Services Agreement to ArtsOC for this work. ArtsOC was established in 1995 as the nonprofit, countywide arts council of Orange County, California. The organization has been recognized by the California Arts Council as a model agency based on the quality of its work. It has served as the officially designated arts agency and state-local partner of the County of Orange since inception. The ArtsOC project team successfully managed all previous phases of the exhibition and has strong TO: CITY ARTS COMMISSION FROM: Library Services Department Melissa Hartson, Library Services Director (949) 717-3801, mhartson@newportbeachca.gov PREPARED BY: Melissa Hartson, Library Services Director TITLE: Sculpture Exhibition in Civic Center Park – Phase IX 18 CITY OF NEWPORT BEACH BOARD OF LIBRARY TRUSTEES STAFF REPORT 2 of 7 working relationships with the City Arts Commission and City staff. COMMUNITY INPUT: Since the exhibition’s inception, the City Arts Commission has increased public engagement in the selection process of the sculptures through an online survey open to residents in Newport Beach. The following elements will be integrated into selecting Phase IX sculptures for the Sculpture Exhibition in Civic Center Park: • The City Arts Commission will not utilize an ad hoc subcommittee for Phase IX. The entire Arts Commission will select the pieces for the Phase IX Sculpture Exhibition online survey, in public, during the City Arts Commission’s regular monthly meetings. • The City Arts Commission and a curatorial panel will approve pieces for inclusion in the online public survey based on the following criteria: artistic merit, durability, practicality, and site appropriateness. • Through the online survey, the public can vote for their favorite sculptures and select the pieces for inclusion in Phase IX. The most popular pieces will be selected for the Exhibition, pending final approval by City Council. FUNDING: Arts Orange County (ArtsOC) provided a budget for Phase IX project management that totals $119,000. The budget remains unchanged from Phase VIII. The all-in project cost is $169,000. This consists of the $119,000 management fee to ArtsOC and 10, $5,000 artist honorariums totaling $50,000. SCHEDULE OF BILLING RATES – 10 Sculptures PHASE ITEM DETAIL COST 9 Installation of Phase 9 Sculptures (June 2024) 10 Sculptures $25,000.00 9 Site Preparation Concrete pads, footings $15,000.00 9 Equipment Rental Cranes, forklifts $6,500.00 9 Project Management & Curation Management Fee $35,000.00 9 Contingency $8,000.00 Phase Sub-Total $89,500.00 9 De-installation of Phase 9 Sculptures (2026) 10 Sculptures $20,000.00 9 Project Management & Curation Management Fee $9,500.00 Phase Sub-Total $29,500.00 ARTS OC PROJECT TOTAL $119,000.00 ARTIST HONORARIUMS $50,000.00 PROJECT TOTAL $169,000.00 19 CITY OF NEWPORT BEACH BOARD OF LIBRARY TRUSTEES STAFF REPORT 3 of 7 For Fiscal Year 2023-24, City Council allocated $135,000 for Phase IX and the Newport Beach Arts Foundation has committed $10,000 to support the artist honorariums. The all-in project cost is $169,000, which is $24,000 over budget. At the October 24, 2023, City Council Meeting, staff received City Council direction to reallocate FY 2023-24 Cultural Arts’ funds to cover the $24,000 deficit. TIMELINE ArtsOC executed the following timeline for Phase IX: City of Newport Beach Sculpture Exhibition in Civic Center Park Timeline Phase IX – 2023-24 DATE TASK October 2023 October 12 or November 9 CITY ARTS COMMISSION REGULAR MEETING Recommends Phase IX contractor to City Council November 2023 Nov. 14 or 28 CITY COUNCIL REGULAR MEETING Approves Arts Orange County contract. December 2023 December 1 December 1 Contract executed. ISSUE CALL FOR ARTISTS (RFP) Disseminate RFP (PAN, CAC, LA Culture Net, PACSOCAL, Local Media, SparkOC, Personal Invitations) Field questions from interested artists. Monitor arriving submissions for completeness. Upload submissions to the public voting page as they arrive. FY 2022-23 FUNDING SOURCES AMOUNT Phase IX Budget #01060603-811059 $135,000 NBAF donation (private funds) $10,000 Programming Budget #01060603-841004 $13,000 Professional Services Budget #01060603-811008 $11,000 TOTAL: $169,000 20 CITY OF NEWPORT BEACH BOARD OF LIBRARY TRUSTEES STAFF REPORT 4 of 7 December 14 City Arts Commission Meeting – Status report. January 2024 January 11 January 24 January 26 City Arts Commission Meeting – Status report. CLOSE RFP (7-week period) Ongoing promotion of RFP throughout the open period. OPEN Online Review & Ranking by City Arts Commission & Guest Jurors (10-day period) February 2024 February 5 February 8 February 11 CLOSE Online Review & Ranking by City Arts Commission & Guest Jurors CITY ARTS COMMISSION REGULAR MEETING Present City Arts Commission & Guest Juror Rankings. APPROVE QUALIFIED SUBMISSIONS FOR PUBLIC SURVEY. OPEN Public online survey of Finalists (4-week period). March 2024 March 11 March 14 March 15 CLOSE Public online survey of Finalists CITY ARTS COMMISSION REGULAR MEETING Presentation of public survey rankings, approval of recommended selections and alternates for presentation to City Council. ArtsOC advises selected artists of their status. Selection is subject to City Council approval, confirm continued availability of their work, their availability for the installation window of time, review questions and concerns with artists, ascertain site preparation needs, collect W9 forms from artists. April 2024 April 9 April 10 April 30 CITY COUNCIL REGULAR MEETING – Present City Arts Commission recommendations for approval. Inform artists of selection. Provide City Attorney with all necessary information for Artists Loan Agreements. City Attorney provides artists agreements to ArtsOC to send to artists. 21 CITY OF NEWPORT BEACH BOARD OF LIBRARY TRUSTEES STAFF REPORT 5 of 7 May 2024 May 15 ArtsOC delivers all artists contracts to City with Phase IX FIRST invoices and Phase VII FINAL invoices. June 2024 June 1 June 10-27 CITY: Provide ARTSOC with Phase VII FINAL payment checks and Phase IX FIRST payment checks to give to artists during de-installation/installation. De-Installation of Phase VII artworks. INSTALLATION OF PHASE IX ARTWORKS. ArtsOC will issue a “Call for Entries”, inviting artists, private collectors, galleries, and museums/nonprofit organizations to submit artworks for consideration of the temporary exhibition in Civic Center Park. To select the pieces for the public survey, the project manager will form a panel of jurors. This panel, comprised of working art professionals, will work with the entire City Arts Commission in the selection and recommendation of pieces in a public meeting. The panel will individually review all the submissions. Each panelist will then review each piece through an online scoring process based on the following criteria: 1. Artistic Merit – the artist has strong professional qualifications, and the artwork is of high quality and demonstrates originality and artistic excellence. 2. Durability – the artwork is made of high-quality materials, requires minimal maintenance, and can withstand the outdoor elements of coastal Orange County. 3. Practicality – the artwork is appropriate for audiences of all ages and does not exhibit unsafe conditions that may bear on public liability. 4. Site Appropriateness – the scale of the artwork is suitable for the environment and the artwork is suitable for viewing from all angles. Pieces approved by the City Arts Commission and curatorial panel will be included in the online public survey. The public, through the online survey, will choose ten artworks and three alternates. ………………………………. A site visit - involving the consulting team and City staff members - will assist and select proposed locations within the park to site the pieces. Locations of the sculptures are based upon existing site sensitivities such as protection of the habitat, the public view plane, clear access to all walkways, and the aesthetics 22 CITY OF NEWPORT BEACH BOARD OF LIBRARY TRUSTEES STAFF REPORT 6 of 7 of the park. The proposed placements will ensure that the existing view plane from Civic Center Drive southward is uncompromised. The City Arts Commission will publicly review the artworks as selected by the public at their March 2024 meeting. Upon City Arts Commission approval, the selected works and proposed site locations will be brought to City Council for final consideration. City Council will review the recommended pieces and park placements at its April 2024 meeting. If City Council approves the artworks and the proposed location for each piece, the project manager will then notify each artist that the artwork has been selected. The sculptures are to be loaned to the City at no cost and the artists are responsible for shipping their work to the Civic Center. To help defray these costs, the City will provide an honorarium for each artist not exceeding $5,000. Installation will take place in June 2024 and the grand opening and dedication of Phase IX will coincide with the 2024 Newport Beach Art Exhibition. As this is a temporary exhibit, the ten pieces comprising Phase VIII will be scheduled for deinstallation in June or July 2026. MARKETING The publicity and marketing for the Sculpture Exhibition is released in phases. Call for Entries Marketing • City website promotional banner • Email sent to Library’s email subscribers. • Email sent to City’s email subscribers. • CallforEntry.org promotional monthly emails • ArtsOC marketing Public Online Survey • City website promotional banner • Library website promotional banner • Email sent to Library’s email subscribers. • Email sent to City’s email subscribers. • Promotional banner on Library’s digital signage at all four locations • Press releases to Stu News Newport Beach, Independent, and Daily Pilot • News Story featured on City website. • News Story featured on Library website. • Promotion included in City Manager’s “The Week in Review” newsletter. Sculpture Exhibition Grand Opening • Ad Banners created for Central Library, Oasis Senior Center, Mariners Fire Station, and the corner of Marguerite Ave. and Pacific Coast Hwy. 23 CITY OF NEWPORT BEACH BOARD OF LIBRARY TRUSTEES STAFF REPORT 7 of 7 • Library website promotional banner • Email sent to Library’s email subscribers. • Email sent to City’s email subscribers. • Promotional banner on Library’s digital signage at all four locations • News Story featured on City website. • News Story featured on Library website. • Ads purchased for Stu News Newport Beach and Laguna Beach, Independent, and Daily Pilot • Sculpture Exhibition brochures • Sculpture Exhibition featured on MyNB app. • ArtsOC marketing • Marketing included in Newport Navigator • Promotion included in City Manager’s “The Week in Review” newsletter. NOTICING: This agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Arts Commission considers the item) 24 CITY OF NEWPORT BEACH CITY ARTS COMMISSION STAFF REPORT November 9, 2023 Agenda Item No. 5 RECOMMENDATION: Under the recommendation of the Newport Beach Art Exhibition Ad Hoc Subcommittee, staff requests that the 2024 Newport Art Exhibition be held on June 29, 2024, in the Civic Center Community Room and Civic Green. DISCUSSION: This one-day juried exhibition gives art lovers the opportunity to view and purchase paintings, photography and sculpture created by numerous regional artists. The exhibition will be open to the public from 1 p.m. - 6 p.m. Guests will be able to view the artwork, meet the artists and purchase the original artwork on display during the exhibition. A portion of the proceeds from the art sale will fund Newport Beach City Arts Commission programs. The event will include an awards ceremony where City leadership and the City Arts Commission will award first, second, third and “judge’s choice” awards, ranging in value from $100 - $300. The entry form and artwork specifications will be made available on the City’s Cultural Arts webpage at www.newportbeachca.gov/CulturalArts under “Newport Beach Art Exhibition.” To apply, artists can make a free account on CallForEntry.org (CaFE). The call for entries will open from February 1 through May 10, 2024. Under the recommendation of the Newport Beach Art Exhibition Ad Hoc Subcommittee, staff requests that the 57th Annual Newport Art Exhibition be held on June 29, 2024, in the Civic Center Community Room and Civic Green. NOTICING: This agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Arts Commission considers the item). TO: CITY ARTS COMMISSION FROM: Library Services Department Melissa Hartson, Library Services Director (949) 717-3801, mhartson@newportbeachca.gov PREPARED BY: Melissa Hartson, Library Services Director TITLE: Date for the 2024 Newport Beach Art Exhibition 25 CITY OF NEWPORT BEACH CITY ARTS COMMISSION STAFF REPORT November 9, 2023 Agenda Item No. 6 ABSTRACT: Staff will present an overview of the annual budget process for the City of Newport Beach. DISCUSSION: The City of Newport Beach (City) operates on a fiscal year budget from July 1 to June 30. The City Council is required to adopt a balanced annual budget on or before June 30 of each year. The City prepares, adopts, and administers the annual budget in accordance with City Council Policy F-3 – Budget Adoption and Administration. In November of each year, the Finance Department (Finance) prepares a budget calendar and issues budget instructions to each department for use in preparing the new fiscal year budget. Finance works with each department to develop the revenues and expenditures estimates for the coming fiscal year and each department submits proposed expenditure appropriation requests to Finance. This process normally begins in the winter. Department requests are then summarized for review by the City Manager. Then, the City Manager confers with each department director and Finance to review and revise each department’s proposed operating budget to develop the City Manager’s proposed budget. After the City Manager has a draft of the proposed City-wide budget, it is first presented to the City’s Finance Committee in early spring. The Finance Committee has an opportunity to discuss the proposed operating budget on at least two occasions. Once the Finance Committee has vetted the operating budget, it is presented to the City Council for review. City Council holds study sessions for a first review and second review of the budget. At a subsequent meeting, City Council holds a public hearing and adopts the proposed budget on or before June 30 by formal budget resolution. NOTICING: This agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Arts Commission considers the item). ATTACHMENT: Attachment A – City Council Policy F-3 – Budget Adoption and Administration TO: CITY ARTS COMMISSION FROM: Library Services Department Melissa Hartson, Library Services Director (949) 717-3801, mhartson@newportbeachca.gov PREPARED BY: Melissa Hartson, Library Services Director TITLE: City of Newport Beach Annual Budget Process 26 F-3 1 BUDGET ADOPTION AND ADMINISTRATION PURPOSE To establish the policy for the preparation, adoption, and administration of the City's Annual Budget. POLICY A.Budgeting Philosophy. The City shall prepare and adopt an annual budget by June 30, of each year, as required by Section 1104 of the City Charter. To the extent practicable, the budget shall be prepared to generate a surplus in most years by conservatively estimating projected revenues and liberally estimating projected expenses. Surpluses will be allocated by the City Council pursuant to Policy F-5 or as otherwise determined by the City Council. The City has a wide variety of obligations associated with its activities and shall establish appropriate reserves for such obligations based upon the best available information at the time each budget is prepared. The City Council shall direct and control the planned use of reserves through the budget appropriation process. Appropriations for operating expenditures shall generally be balanced with current revenue sources and absent compelling, unexpected circumstances, will generally not rely on one-time revenue sources or reserves. However, this constraint is not intended to limit the periodic use of financial resources that were accumulated over time for a specific purpose or use of reserves consistent with their intended purpose. The City Council shall maintain a contingency reserve that shall be a “safety net” to address exigent circumstances consistent with Council Policy F-2 section E. 1. This reserve will generally not be used for other purposes. The contingency reserve will be invested in short-term readily liquid assets so they can be utilized on short notice. The budget may be developed with one or more contingency plans to protect against volatility or unexpected events. When significant uncertainty exists concerning revenue volatility or threatened/pending obligations, the City Council and City Manager reserve the right to impose any special fiscal control measures, including a personnel hiring freeze, and other spending controls, whenever ATTACHMENT A 27 F-3 2 circumstances warrant. The City Council may authorize the use of contingency reserves for any purpose as set forth by Council Policy F-2. B. Organization of the Budget. The Budget shall consist of two volumes: the Budget Detail and the Capital Improvement Program (CIP). The Budget Detail is an Operating Budget, which shall also provide historical trends of summary level information and contains line–by-line detail regarding operating expenditures and revenue estimates for the prior year, current year and budget year. Operating expenditures are categorized into five classifications within the Operating Budget. These are Salaries and Benefits, Maintenance and Operations, Capital Outlay, Debt Services and Interfund Transfers. The CIP document provides a summary of current and future planned projects, basic descriptions of each project, the anticipated funding source and the scope of work to be performed. CIP improvements are generally major facility or infrastructure improvement projects managed by the Public Works Department. The Finance Committee generally will not make a recommendation on the CIP Budget because it is within the purview of the City Council alone to determine how best to spend the City’s resources. However, to the extent needed capital improvements or repairs come to the attention of the Finance Committee and the failure to construct those improvements or make those repairs may expose the City to financial risk, the Finance Committee may make a recommendation that such improvements be installed in the coming fiscal year(s). Because of the nature and scope of the CIP improvements, in most instances, the construction of such improvements will take place over more than one fiscal year. The final and complete versions of both budget volumes will be published and available on the City’s website by no later than September 30th. C. Budget Process. In November of each year, the Finance Department will prepare a budget calendar and issue budget instructions to each department for use in preparing the budget. During December of each year, the Finance Department will prepare updated revenue estimates and fund balance projections for the current year and prepare preliminary revenue projections for the next fiscal year. Included in these instructions will be budget guidelines and, if deemed necessary, appropriation 28 F-3 3 targets for each department. These guidelines will be developed by the Finance Director and approved by the City Manager. After further refinements of revenue estimates and the completion of Department proposed expenditure appropriation requests, the Finance Department will summarize department requests for review by the City Manager. After the City Manager has reviewed and amended the Department Directors requests, the Finance Department will prepare the City Manager’s proposed budget for the next fiscal year and shall submit it to the City Council and to the Finance Committee. The Finance Committee should have the opportunity to question staff and discuss the Budget Detail on at least two occasions. The City Council shall hold as many budget study sessions as it deems necessary. The City Council and the Finance Committee should have a joint meeting (which may be in a Study Session) not later than the second Council meeting in May to discuss the Budget Detail. After the joint meeting, the Finance Committee shall make a recommendation to the City Council on the Budget Detail. Such recommendation need not include any recommendation on items on the Proposed Budget Revisions unless the Finance Committee is specifically asked to do so by the City Council. All proposed Council changes to the City Manager's proposed budget shall be itemized in a document referred to as the Proposed Budget Revisions. The City Council shall hold a budget hearing and adopt the proposed budget with any desired Proposed Budget Revisions on or before June 30 by formal budget resolution. When adopted, the proposed budget as supplement by the finalized Proposed Budget Revisions shall become the final budget. D. Long-Range Financial Forecast (LRFF). Strategic planning begins with determining the City’s fiscal capacity based upon long-term financial forecasts of recurring available revenues and future financial obligations. Prior to the adoption of the annual budget, the Finance Department will prepare and present to the Finance Committee a Long-Range Financial Forecast that evaluates known internal and external issues impacting the City’s financial condition. The LRFF is intended to help the City achieve the following: 1. The City can attain and maintain financial sustainability; 2. The City has sufficient long-term information to guide financial decisions; 29 F-3 4 3. The City has sufficient resources to provide programs and services for the stakeholders; 4. Identify potential risks to on-going operations in the long-term financial planning process and communicate these risks on an annual basis; 5. Establish mechanisms to identify early warning indicators; and 6. Identify changes in expenditure or revenue structures needed to deliver services or to meet the goals adopted by the City Council. The LRFF will forecast revenues, expenditures, and the financial position of the General Fund Contingency Reserve at least five years into the future or longer where specific issues call for a longer time horizon. The LRFF will identify issues that may challenge the continued financial health of the City, and the plan will identify possible solutions to those challenges. Planning decisions shall be made primarily from a long-term perspective and structural balance is the goal of the planning process. E. Administration of the Annual Budget. During the budget year, Department Directors and their designated representatives may authorize only those expenditures that are based on appropriations previously approved by City Council action, and only from accounts under their organizational responsibility. Any unexpended appropriations, except valid encumbrances such as commitments already made, expire at fiscal year-end unless specifically reappropriated by the City Council for expenditure during the ensuing fiscal year. Department Directors shall not authorize expenditures above budget appropriations in any given expenditure Classification within their purview, without additional appropriation or transfer as specified below. Appropriations may be transferred, amended or reduced subject to the following limitations: 1. New Appropriations. During the Budget Year, the City Council may appropriate additional funds, as it deems appropriate, by a City Council Budget Amendment. The City Manager has authority to approve requests for budget increases not to exceed $10,000 in any Budget line item or activity or Capital Project. The ability of the City Manager to approve such requests must be specifically included in each year's Budget Resolution to remain valid. 30 F-3 5 2. Grants & Donations. The City Manager may accept grants or donations of up to $30,000 on behalf of the City, but shall refer any such grant or donation to the City Council for consideration if a condition of such grant or donation entails any duty of the City to contribute and/or expend a sum in excess of $10,000 not covered by such grant or donation, or that carries a future obligation to maintain and/or insure any improvement. The City Council will be formally notified of all grants or donations on a quarterly basis by way of a “receive and file” or other Council meeting agenda item. This ability of the City Manager to accept grants or donations must be specifically included in each year's Budget Resolution to remain valid. Additionally, grant related appropriations approved by City Council may be carried forward to the following fiscal year(s) as long as the grant terms remain valid, the expenditures are consistent with the previous Council authorization, and the funds would otherwise need to be returned to the granting or donor agency. Also, see Council Policy F-25 for specific grant acceptance and administration procedures. Grant agreements and restricted donations in excess of $30,000 must be specifically approved by the City Council. Occasionally, the terms and conditions of a grant are approved by City Council in a year prior to when the program activity will take place and therefore, the funds are not appropriated to carry out the grant at that time. In such cases, the City Manager may appropriate the funds when they are received, provided the expenditures clearly meet the amount, terms, nature and intent of the grant or donation previously approved by City Council. 3. Assessment District Appropriation. Assessment district projects are typically funded by property owner contributions and bond financing secured by property assessments. City staff will initially seek appropriation to advance City resources for the assessment engineering and the design work related to a proposed assessment district. Since the City’s advance is at risk until a district is formed at a public hearing, the appropriation related to advanced resources shall be subject to the normal budget policies. However, once the district has been formed at a public hearing, the City Council will adopt a “project-length” budget for the assessment district and City staff will be allowed to roll the appropriations forward into future fiscal years without rebudgeting the project through the formal CIP process. 31 F-3 6 When assessment bonds are issued to finance the improvements, the bond issuance costs will be estimated at the maximum amount that would be required to complete the improvements because it is not known how many property owners will opt to pay the assessment in full during the cash collection period, thereby reducing the size of the bond. Finance staff will also have the authority to reduce Council appropriations (related to bond issuance costs) after bonds are resized and sold. Money advanced by the City will be included in the assessment amount and be reimbursed to the City when the assessment district is formed except to the extent otherwise agreed to by City Council resolution. 4. Transfers within Departments. During the fiscal year, actual expenditures may exceed budget appropriations for specific expenditure line items within departmental budgets. If a departmental budget within a specific Classification is not exceeded, the Finance Director has the authority to transfer funds elsewhere within that Classification and Department to make the most efficient use of those funds appropriated by the City Council. 5. Transfers between Departments. Further, funds may be realigned between one Department and another, within the same Classification, with City Manager approval. For example, if a Fire Department function and the employee who accomplishes it are replaced by a slightly different function assigned to the Police Department, the City Manager may authorize the transfer of appropriated funds to support this function. 6. Transfers between Expenditure Categories. Any reprogramming of funds (i.e. movement) of funds among the five Classifications within the General or other Fund(s) requires the City Manager’s approval. Any budget revision that changes the total amount budgeted for any fund (other than the minor provisions contained in paragraphs E.1. and E.7.b.) must be approved by the City Council. 7. Transfers between Capital Improvement Projects (CIP). Budget Transfers between Capital Improvement Projects shall be subject to the following parameters: a. Excess Project Appropriations or savings should be closed out and returned to the project’s fund balance. Funds may then be 32 F-3 7 reappropriated to a new or existing project with the approval of City Council. b. Excess Project Appropriations may also be transferred from one CIP project to another, if the projects utilize the same funding source and are for substantially the same project purpose and physical location. Project appropriation transfers of this nature shall require the approval of the City Manager. All proposed budget amendments and transfers will be submitted to the Finance Director for review and processing prior to City Manager or Council authorization. All unexpended and unencumbered appropriations for the operating budget will be canceled on June 30 of each fiscal year. All appropriations in the Capital Improvement Budget for projects currently underway and remaining unexpended at June 30th, as approved by the City Manager, will be appropriated to those projects in the following fiscal year CIP Budget. Incomplete projects may be reappropriated by the City Council during the Budget process or by separate Council action. F. Management Authorization and Responsibilities. Once the final Budget has been approved by the City Council, specific City Council approval to make expenditures consistent with the Budget will not be required except as provided by other Council Policies and Administrative Procedures. It is the responsibility of the City Manager and management to administer the City’s budget within the framework of policy and appropriation as approved by the City Council. 1. The Finance Director is responsible for checking purchase requests against availability of funds and authorization as per the approved Budget. 2. Unless otherwise directed, routine filling of vacancies in staff positions authorized within the Budget will not require further City Council approval. However, new positions, not addressed by the adopted budget shall require City Council approval. 3. At fiscal year end, the Finance Director is authorized to record accruals and transfers between funds and accounts in order to close projects or the books of accounts of the City in accordance with generally accepted governmental accounting principles as established by the Government Accounting 33 F-3 8 Standards Board, Government Finance Officers Association, and other appropriate accounting pronouncements. Any net shortage within a Fund will be recorded as a decrease in Fund Balance. Any net excess will be recorded as an increase to one or more appropriate Reserve Accounts as recommended by the Finance Director and approved by the City Manager or as is otherwise dictated by Council Reserve Policy (F-2). The net change in fund balances will be reported to City Council through various documents including Quarterly Financial Reports, the Comprehensive Annual Financial Report (CAFR), Budget Documents and other financial presentations. Funds that exceeded appropriations during the year or ended the year with a deficit fund balance are reported annually in the CAFR notes to the financial statements. (Information regarding the policy parameters and administration of City Reserves is contained in City Council Policy F-2.) Adopted - January 24, 1994 Amended - February 27, 1995 Corrected - February 26, 1996 Amended - May 13, 1996 Amended - May 26, 1998 Amended - August 8, 2000 Amended – May 8, 2001 Amended – April 23, 2002 Amended – April 8, 2003 Amended – April 13, 2004 Amended – September 13, 2005 Amended - October 10, 2006 Amended – August 11, 2009 Amended – September 27, 2011 Amended – February 12, 2019 Formerly F-10, F-11, F-12, and F-21 34