Carmel-by-the-Sea
City Council
Regular Meeting
Tuesday, January 9, 2007

V. Announcements from Closed Session, from City Council Members and the City Administrator.

A. Announcements from City Administrator.
• Receive Art Inventory update

Ellen Osterkamp entered into an agreement with the City of Carmel-by-the-Sea in May 2006 to complete an inventory and appraisal of the city’s art collection. She reported that the City of Carmel-by-the-Sea owns “at least 905 pieces” of art. The city collection includes works by notable artists, including Armin Carl Hansen, Edward Weston, Morley Baer, Lynn Lupetti and Loren Speck. She has completed the inventory and has begun the appraisal process. The Inventory consists of a binder of photos of the 905 artworks. Of the total 905 pieces of art, approximately 200-250 are photographs, including 140 Edward Weston photographs and 35 Morley Baer photographs. The entire collection will be appraised for deaccession and insurance purposes.

Reference:
Special Meeting
Tuesday, May 23, 2006

IV. Orders of Council

A. Consideration of a Resolution entering into a professional services agreement with Ellen Osterkamp for art inventory and art appraisal services in an amount not to exceed $90,000.

Selected excerpts from Staff Report by Christie Miller, Community Services Manager.

SUMMARY
Entering into a Professional Services agreement with Ellen Osterkamp to complete an inventory and appraisal of the City owned art collection will address GASB 34 and the requirements for insurance coverage. The project is to be completed by June 30, 2007.

BACKGROUND

The City has an extensive art collection in excess of 1,000 pieces. In 2000 and 2002 an inventory and appraisal was completed for insurance purposes valued at $1.6 million of art located at City Hall, Sunset Center and Harrison Memorial Library-Main Branch. The City owned art collection is made up of various degrees of quality, with past appraisals ranging from $300-$95,000 per item. These pieces have been acquired over the years, mostly by donation. The Harrison Memorial Library-Park Branch was not inventoried/appraised at that time. The majority of the city owned art is located at the Park Branch, which could number over 700 individual pieces.

Since the 2000 and 2002 appraisals, a few pieces have been added with the stated values, as they have been acquired. However, the previous appraisal did not cover art or other archival property of value located at the Park Branch Library. The City's current insurance only provides coverage for "scheduled" fine art. Therefore a loss of an unscheduled piece would not be covered. An updated inventory of art with appraised values for those pieces, which are not on the current schedule, would provide the City's insurance carrier with the necessary information to add additional pieces to the current policy.

Government Accounting Standard Board (GASB) 34 requires the City to capitalize its assets. For works of art, GASB 34 requires the city to establish a capitalization policy and to record works of art acquired or donated after June 30, 2002. The City has until June 30, 2007 to complete its capitalization inventory. The City’s financial statements are submitted to the State and to bond reporting agencies; therefore non-compliance would have a negative impact on our financial status and bond ratings.

Total Estimated cost for Park Branch: $63,000
􀂾Inventory Park Branch estimated 800 pieces Cost: $28,000.
􀂾Appraisal of pieces estimated 700 pieces Cost: $35,000

Estimated cost for updated inventory/appraisals (excluding Park Branch): Cost: $27,000
􀂾Inventory of all art pieces (excluding Park Branch) would include pieces at City Hall, Sunset and Harrison Memorial Library Main Branch. Approximately 300 pieces Cost: $10,500
􀂾Update appraisals (City Hall, Sunset and Harrison Memorial Library Main Branch. Approximately 300 pieces. Cost: $16,500.00

Estimated cost to for entire city owned art inventory/appraisal not to exceed $90,000.

Note: According to a former member of the Carmel Art Board, one of the reasons for the mass resignations of Carmel Art Board Members was that they were engaged with a professional to complete the inventory of the city’s art collection. During this ongoing process, the City Council, namely Mayor Sue McCloud, usurped that authority of the Carmel Art Board and instead arranged for another individual to complete the inventory and appraisal of the city’s art collection.