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Insurance Appraisal Prepared Expressly For The City of Carmel-by-the-Sea At P.O. Box CC Carmel-by-the-Sea, CA 93921 On June 15, 2007 By Ellen Osterkamp, ISA AM, Ellen Osterkamp Appraisals, document
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ART COLLECTION DEACCESSION PROJECT from Sheryl Nonnenberg (August 24, 2011) Re: City of Carmel Art Collection document
·
Master Consignment Agreement (MCA) between the City and Michaan’s Auctions
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City Administrator's Office Memo to Honorable Jason Burnett, Mayor, and Members of the City Council, May 22, 2014, Subject: Art Deaccession Auction
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Michaan's Auctions Results for Auctions on November 5, 2013, December 1, 2013, December 3, 2013 and January 7, 2014
Interestingly, Michaan’s attorney told City Attorney Don Freeman that the deaccessioned artworks would yield about $25,000 at auction, and less Michaan’s 10% commission and 1.5% insurance fee, the City expected to realize “as much as $19,000” from the sale of the deaccessioned artworks. And while the thirty-five deaccessioned artworks were appraised at a total of $262,450 in 2007, the City realized $9,680.14 for the sale of the artworks from the November 2013, December 2013 and January 2014 Michaan’s auctions (Michaan’s Est. Low $6,325 and Est. High Status $11,960 for all thirty-five artworks).
WHAT THE CITY’S RESPONSE TO A PUBLIC RECORDS ACT REQUEST REVEALEDInterestingly, Michaan’s attorney told City Attorney Don Freeman that the deaccessioned artworks would yield about $25,000 at auction, and less Michaan’s 10% commission and 1.5% insurance fee, the City expected to realize “as much as $19,000” from the sale of the deaccessioned artworks. And while the thirty-five deaccessioned artworks were appraised at a total of $262,450 in 2007, the City realized $9,680.14 for the sale of the artworks from the November 2013, December 2013 and January 2014 Michaan’s auctions (Michaan’s Est. Low $6,325 and Est. High Status $11,960 for all thirty-five artworks).
- Insurance Appraisal Prepared Expressly For The City of Carmel-by-the-Sea On June 15, 2007 By Ellen Osterkamp, ISA AM, identified the replacement cost of the appraised items totaling $2,911,595.00 for the artworks in the City’s art collection.
Source:
Ellen Osterkamp, ISA AM Letter, ELLEN OSTERKAMP APPRAISALS, June
15, 2007 to Mayor and Members of the City
Council of Carmel-by-the-Sea.
NOTE: “THIRTY-FIVE pieces of city-owned artwork appraised at a total $262,450 in 2007,” according to reporting in The Carmel Pine Cone.
Source: Artwork, appraised at $250K, brings in just $10K, By MARY SCHLEY, The Carmel Pine Cone, July 4, 2014, 1A & 21A
The City paid a consultant to recommend the list of items for deaccessioning. She also, as part of the work, contacted six auction houses. Michaan's offered the best terms.
Don Freeman told me that Michaan's attorney felt the entire lot would bring about $25,000 at auction. Michaan's will take a commission of 10% of the hammer price, and an insurance fee of 1.5% of the hammer price. We have to have one sculpture authenticated and there will be a charge that they will deduct for that - I don't know how much it will cost. There is an additional10% fee for cartage and storage if it is necessary -I still have to determine the cost of them transporting the art vs. our doing it ourselves.
A long answer, but I think after all the fees we could realize as much as $19,000 from the sale.
This does not have to go to Council the CA can sign it, there were additional quotes, it is a specialized service and under $25,000. Please let me know if you have any questions.
Thanks
Sue
wrote:
Hi Barbara et. AI.: an art appraisal and auction are both planned to occur this fiscal year. The auction is of material previously deaccessed by the City Council while the appraisal is a periodic update of our inventory and appraised value. It will be interesting how the auction price compares to the appraised estimates; it will give us a better understanding of the delta between the two numbers and of the strength of the art auction market. I think that information will be helpful for us to determine if deaccession of additional works is something that makes sense. Jason S.
, "Ken
Talmage (kktalm@aol.com)" , steve
dallas, Council Member Beach
Auction Date 11/5/2013
Amount $852.26; 22 Artworks SOLD, 7 Unsold Lots
Auction Date 12/1/2013
Amount $4,876.35; 5 Artworks SOLD
Amount $3,761.25; 1 Artwork SOLD
6 Total Artworks SOLD
Auction Date 12/3/2013
Amount $168.15; 5 Artworks SOLD
Auction Date 1/7/2014
Amount $22.13; 2 Artworks SOLD
Source: Artwork, appraised at $250K, brings in just $10K, By MARY SCHLEY, The Carmel Pine Cone, July 4, 2014, 1A & 21A
- The City Council approved the deaccessioning of thirty-five City artworks from a list compiled by art consultant Sheryl Nonnenberg at the January 10, 2012 and April 10, 2012 city council meetings.
- Correspondence from Janet Bombard, Library Director, to Susan Paul, Administrative Services Director regarding Master Consignment Agreement (MCA) between City of Carmel-by-the-Sea and Michaan’s Auctions.
From:
Janet Bombard
Sent:
Tuesday, March 26, 2013
To:
Susan Paul
Subject:
RE: library deaccession MCA
The City paid a consultant to recommend the list of items for deaccessioning. She also, as part of the work, contacted six auction houses. Michaan's offered the best terms.
From:
Janet Bombard
Sent:
Tuesday, March 26, 2013 5:33
PM
To:
Susan Paul
Subject:
RE: library deaccession MCA
Don Freeman told me that Michaan's attorney felt the entire lot would bring about $25,000 at auction. Michaan's will take a commission of 10% of the hammer price, and an insurance fee of 1.5% of the hammer price. We have to have one sculpture authenticated and there will be a charge that they will deduct for that - I don't know how much it will cost. There is an additional10% fee for cartage and storage if it is necessary -I still have to determine the cost of them transporting the art vs. our doing it ourselves.
A long answer, but I think after all the fees we could realize as much as $19,000 from the sale.
- Correspondence from Susan Paul, Administrative Services Director to Jason Stilwell, City Administrator, regarding not placing the library deaccession MCA on a city council agenda.
From:
Susan Paul
Sent:
Tuesday, March 26, 2013 8:04 PM
To:
Jason Stilwell; Janet Bombard
Subject:
RE: library deaccession MCA
Thanks
Sue
- The
City consigned the 35 deaccessioned artworks with Michaan’s in August
2013.
“Thank you for consigning property with Michaan's
Auctions. Your property was
received in our warehouse on 8-2-13. It is now
in our queue to be inventoried and
appraised. Once your property has been received a listing
will be sent out to you.”
“Once your property has been sold you will receive a settlement
check thirty business days after the auction.”
Source:
Tammie Chambless, Trust & Estates Assistant, Michaan's
Auctions, Letter to Janet Bombard, August 9, 2013, Re: Harrison
Memorial, Contract # 5572
- Correspondence from City Administrator Jason Stilwell and resident Barbara Livingston including the statement “It will be interesting how the auction price compares to the appraised estimates; it will give us a better understanding of the delta between the two numbers and of the strength of the art auction market.”
Hi Barbara et. AI.: an art appraisal and auction are both planned to occur this fiscal year. The auction is of material previously deaccessed by the City Council while the appraisal is a periodic update of our inventory and appraised value. It will be interesting how the auction price compares to the appraised estimates; it will give us a better understanding of the delta between the two numbers and of the strength of the art auction market. I think that information will be helpful for us to determine if deaccession of additional works is something that makes sense. Jason S.
- “Ms. Nonnenberg felt that given the limitations of staff and budget, the actual process of deaccessioning the art would be best undertaken by a professional auction house. She contacted six auction houses: Sotheby's, Bonhams and Butterfield, Clars, Michaan's Auctions, DGW Auctioneers, and Hambrooks. Based on her conversations with the auction houses and their proposals, Nonnenberg recommended using either Clars or Michaan's Auctions. Staff, after conversations with both companies, determined that Michaan's Auctions offered the most attractive terms: a 10% commission on the hammer price of all items, and a 1.5% insurance fee on the hammer price.” “The sale of the 35 artworks realized $9,680.14.”
Source: City Administrator's Office
Date:
May 22, 2014
To:
Honorable Jason Burnett, Mayor, and
Members
of the City Council
From:
Jason Stilwell, City Administrator
Subject: Art
Deaccession Auction
City Administrator's Office Memo to Honorable Jason Burnett, Mayor, and Members of the City Council, May 22, 2014, Subject: Art Deaccession Auction- City Administrator Jason Stilwell advised the City Council regarding the sale of the 35 artworks realizing $9,680.14 on May 22, 2014 though Michaan’s Auctions sold the 35 artworks at auctions on November 5, 2013, December 1, 2013, December 3, 2013 and January 7, 2014.
From: Jason Stilwell .carmel.ca.us>
Subject: Deaccession Memo
Date: May 22, 2014 at 4:39:29 PM PDT
To: "Carrie Theis (carrie@hofsashouse.com)" .com>,
"'jason@burnettforcarmel.com'"
Cc: Janet Bombard .carmel.ca.us>
Mayor and Council: please see the
attached correspondence regarding the results of the City's recent
deaccession process. Jason
Amount $852.26; 22 Artworks SOLD, 7 Unsold Lots
Amount $4,876.35; 5 Artworks SOLD
Amount $3,761.25; 1 Artwork SOLD
6 Total Artworks SOLD
Amount $168.15; 5 Artworks SOLD
Amount $22.13; 2 Artworks SOLD
Source: Michaan's Auctions
Consignor Statements
NOTE: ALL AUCTION PROCEEDS WERE DEPOSITED TO THE CITY’S ART PRESERVATION DEPOSIT ACCOUNT
Sue,
As you likely know, Carolina Bayne is citing the art deaccessioning as one of the 9 reasons for calling for Jason Stilwell's resignation. As the art deaccessioning was done because it was a priority of yours and the primary City Council action was taken while you were mayor, I would respectfully request that you let Carolina know that it is not fair to try to hold staff accountable for this action of the City Council. I have already told her this but I think it would carry more weight to hear it from both of us.
I appreciate your attention to a fair and honest treatment of staff.
Thank you,
Jason
Jason Burnett
831.238.0009
Jason
I would be happy to discuss this with you and Carolina--but let's review 2 separate issues –
First...yes, when I was Mayor, we had the City's collection inventoried and reappraised by a credentialed appraiser, defined as to what it was composed of and policies written for accessioning and deaccessioning. We then put before the Council (of which you were a member) a number of items for possible deaccessioning and it was decided to deaccession 35 pieces. I then left office.
Second ... To actually realize the deaccessioning Sheryl Nonnenberg, the woman who had written the policies, defined the collection and made the recommendations for sale, offered her services to the City to select the auction house, and see the sale through to conclusion for as I recall a flat fee of $5k. To my knowledge she was never responded to or a counter offer made. She has been associated with the Stanford Museum and for a number of years with the Anderson collection, is a published writer on art and if I remember correctly had some official function with the City of Palo Alto. They live in Menlo Park or Atherton and have a home here in Carmel as well.
I kept inquiring about the projected sale and learned the identity of the auction house the City had selected and that the auction was finally planned for last November and being handled by Janet Bombard. Sometime after that date, perhaps late Dec or early Jan, at a chance encounter at City Hall, I asked Janet how the sale had gone and she said she was waiting for a final accounting. I have auctioned things in SF, DC and NYC and I knew results were always available immediately thereafter. Repeated inquiries to Jason Stilwell and Janet brought no response, so finally on May 15 I put in a PRA request. The 10 days were up on a Friday and I received a response one half hour before the deadline which was all the accountings from Michaans in the East Bay. I was floored to find that the 35 items appraised for almost $275,000 were sold for the sum of $9,648.
6 of these items were received in early 2000 and 3 were appraised for $30K each and 3 for $32K each ... 3 were then sold for $10 each and 3 for $5 each less commission etc. In the case of the 3 by the German artist Haegele who is no longer living and had been purchased from the Hart Gallery in Carmel, we had been told that the Haegele family in Germany was trying to buy back his works so I had shared this with both Jason and Janet and suggested that they might want to contact the Hart Gallery (which has now closed its Carmel Gallery and moved to their Gallery in Palm Dessert). It doesn't appear that this was ever done.
I could not find that any reserves were established, many of the items were not auctioned in the main gallery but a building which from photos looked like one big garage sale.
So the 2 separate issues are that yes you and I and Council decided to sell 35 items, but the selection of the Auction House, and all related arrangements for sale etc were made under your administration. I have subsequently learned that a couple of days before I received the answer to my PRA request, Jason sent a memo to Council with the policies for accessioning and deaccessioning attached. At the bottom of the memo is a sentence that read" the 35 items realized a sale price of $9,648". I have frankly been appalled that no Council member appears to have read or remarked on the memo and the 35 items of art sold for $9,648. Is this good stewardship of City assets?
I would be happy to share the above with Carolina.
sue
Consignor Statements
- Correspondence between Mayor Jason Burnett dated July 23, 2014 and former Mayor Sue McCloud dated Jul 23, 2014 regarding City’s deaccessioning of 35 city-owned artworks. McCloud writes “I have frankly been appalled that no Council member appears to have read or remarked on the memo and the 35 items of art sold for $9,648. Is this good stewardship of City assets?”
From: Jason Burnett
Subject: petition
Date: July 23, 2014 at 9:20:46 PM PDT
To: Sue McCloud Cioud93921@aol.com
Subject: petition
Date: July 23, 2014 at 9:20:46 PM PDT
To: Sue McCloud Cioud93921@aol.com
Thank you,
Jason
Jason Burnett
831.238.0009
From: Cloud9392l@aol.com
Date: Wed, Jul 23, 2014 at 11 :04 PM
Subject: Re: petition
To: "jason.burnett@gmail.com" jason.burnett@gmail.com
Date: Wed, Jul 23, 2014 at 11 :04 PM
Subject: Re: petition
To: "jason.burnett@gmail.com" jason.burnett@gmail.com
First...yes, when I was Mayor, we had the City's collection inventoried and reappraised by a credentialed appraiser, defined as to what it was composed of and policies written for accessioning and deaccessioning. We then put before the Council (of which you were a member) a number of items for possible deaccessioning and it was decided to deaccession 35 pieces. I then left office.
sue
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