Arts_Task_Force
2009 2008 2007 2006 2005 MEETING OF THE ARTS TASK FORCE
Tuesday, May 3, 2005
3:00 p.m.
City Hall Room 201
Minutes
- Call to Order
The meeting was called to order at 3:00 p.m.
- Roll Call
Voting Members Present
Jeffrey Ferns
Rick Galbreath
Ron Gallman
David Gluck
Elaine Katzenberger
Krissy Keefer
Tony Kelly
Maria X. Martinez
Vinay Patel
Pamela Peniston
Richard (Rick) Putz
Alma Robinson
Laird Rodet
Darryl Smith
Marc Vogl
Debra Walker
Voting Members Excused
Ken Foster
Pamela Wu Kochiyama
Virginia (Ginny) Carollo Rubin
Voting Members Absent
Tim Gaskin (excused after the fact)
Nonvoting Members Present
Bob Davis
Renee Hayes
Rich Hillis
Daniel Homsey
Elizabeth Murray
Geraldine O’Brien
Charles Roppel
Nonvoting Members Excused
Richard Newirth
Nonvoting Members Absent
P.J. Johnston
Gloria Woo
- Approval of Minutes
After motion duly made and seconded, minutes of the April 20, 2005 meeting were approved without objection. There was no public comment on this item.
NOTE: ALL VOTES ARE UNANIMOUS UNLESS OTHERWISE RECORDED.
- Announcements by the Chair
The Chair announced that Deborah Cullinan had resigned from the Arts Task Force for personal reasons, effective immediately, and asked for suggestions to fill her seat, to be appointed by the Board of Supervisors.
There was no public comment on this item.
- Drafting of Bylaws
The City Attorney distributed a draft template of the proposed bylaws. The Task Force discussed setting a regular meeting place, and asked questions regarding conflict of interest and abstentions, maintenance of records, and offsite meetings, which require 15 days’ notice. The Task Force instructed the City Attorney to indicate City Hall as its principal meeting place. The revised draft, based on discussions at this meeting, is to be brought before the Task Force at its next meeting for consideration.
There was no public comment on this item.
- Approve Meeting Schedule
The Arts Task Force discussed the following possible calendar of regular meeting dates, times and locations, subject to room and/or venue availability, but no formal vote was taken. The Task Force reserved the right to amend said schedule as future needs may dictate.
Tuesday, May 3, 3:00 p.m.-5:00 p.m., City Hall Room 201
Wednesday, May 18, 4:00 p.m.-7:00 p.m., City Hall Room 201
Tuesday, June 7, 5:30 p.m.-8:30 p.m., SomArts
Wednesday, June 15, 4:00 p.m.-7:00 p.m., City Hall Room 201
Tuesday, July 5, 5:30 p.m.-8:30 p.m., City Hall Room 201
Wednesday, July 20, 4:00 p.m.-7:00 p.m., the Thick House, 1695 Eighteenth Street
Tuesday, August 2, 5:30 p.m.-8:30 p.m., City Hall Room 201
Wednesday, August 17, 4:00 p.m.-7:00 p.m., a location in the Mission District to be announced
Tuesday, September 6, 5:30 p.m.-8:30 p.m., City Hall Room 201
Wednesday, September 21, 4:00 p.m.-7:00 p.m., City Hall Room 201
Saturday, October 8, 10:00 a.m.-1:00 p.m., a location in District 7 to be announced
Wednesday, October 19, 4:00 p.m.-7:00 p.m., City Hall Room 201
Tuesday, November 1, 5:30 p.m.-8:30 p.m., City Hall Room 201
- Distribute and Discuss Documentation
The Chair distributed a City departmental organizational chart, and arts funding organizational chart, as well as the documents indicated in the agenda. An extensive discussion ensued regarding the City’s budget process and history of Hotel Tax Fund allocation (see synopsis of remarks by Beth Murray, below), mandatory City spending including the nature of budget carve-outs mandated by the City Charter and Municipal Codes, the nexus of arts funding impact on delivery expense of other City services, and the effect on existing Codes by the mandates of the Annual Allocation Ordinance.
Beth Murray, War Memorial Executive Director, gave an extensive explanation of the Hotel Tax Fund history, as follows:
The Hotel Tax rate is currently 14%, consisting of an 8% base Hotel Tax rate plus a surcharge of 6%. In accordance with the City’s Municipal Code, revenues from the 8% base rate are dedicated and allocated to specific programs including the City’s Convention Facilities, Convention and Visitors Bureau, Low Income Housing in YBC Redevelopment Project Area, War Memorial, Grants for the Arts, Arts Commission’s Cultural Equity Endowment Fund and Cultural Centers, Asian Art Museum, and Fine Arts Museums; Hotel Tax revenues realized from the 6% surcharge are allocated to the General Fund.
Prior to FY 1997-98, specific Hotel Tax allocations were calculated as a percentage of the total 8% portion of Hotel Tax revenues received in the prior fiscal year. Ordinance 360-97, adopted in 1997, changed the special purpose allocations of Hotel Tax revenues from percentages to specific dollar amounts, such amounts to be adjusted annually by the rate of actual growth or reduction in Hotel Tax revenues, subject to a floor and ceiling of 10%. The specific dollar allocations for FY 1997-98 set forth in the Ordinance were based on prior percentage allocations of the total 8% portion of Hotel Tax revenues projected for FY 1996-97.
Per the 1997 Ordinance, if Hotel Tax revenues increase by more than 10% in any one year, specific allocations for that year are capped at a 10% increase, with the excess increase allocated to the General Fund. Conversely, if Hotel Tax revenues decrease by more than 10% in any one year, specific allocations for that year are capped at a 10% decrease, with the excess decrease coming out of Hotel Tax revenues allocated to the General Fund. Hotel Tax revenues experienced significant growth during the 1990’s, but that growth cycle ended by FY 2001-02 when revenues declined by nearly 30%. Per the Ordinance, the decrease in specific Hotel Tax allocations for 2001-02 was capped at 10%. The balance of the decrease attributable to specific allocations amounting to approximately $17.4 million, together with decreased revenues from the 6% Hotel Tax surcharge, resulted in a total decrease in 2001-02 Hotel Tax revenues to the General Fund of 47% or $47 million from the prior year.
For the last two fiscal years, specific Hotel Tax allocations pursuant to the Municipal Code were modified in the City’s Annual Appropriation Ordinance (“AAO”) in order to increase the amount of Hotel Tax revenues available for allocation to the General Fund. The FY 2003-04 AAO included specific dollar amount reductions in Hotel Tax allocations to the War Memorial and to Publicity/Advertising-Recurring Events (Grants for the Arts). The FY 2004-05 AAO lists flat dollar amounts to be allocated and appropriated to specific Hotel Tax recipients, which amounts represent an approximate 4.5% reduction from 2003-04 actual allocations, and include additional reductions in allocations to Convention Facilities and Publicity/Advertising-Recurring Events. We are advised that the Mayor’s current budget plan for FY 2005-06 assumes that specific Hotel Tax allocations will be again set in the 2005-06 AAO at the same level as in 2004-05, with all Hotel Tax revenues collected in excess of these allocations transferred to the General Fund.
Based on the Controller’s six-month budget status report for 2004-05, Hotel Tax revenues for FY 2004-05 are currently projected to be 4.1% above 2003-04; the Controller is projecting additional 7% growth in Hotel Tax revenues for FY 2005-06. Based on these projections, the estimated impact on War Memorial Hotel Tax allocations is a reduction of approximately $760,000 in 2004-05, and a reduction of approximately $1.4 million in FY 2005-06. Estimated reductions in Hotel Tax allocations to Grants for the Arts are approximately $2.4 million in 2004-05 and $3.5 million in 2005-06.
Jeff Jones commented on the genesis of the Hotel Tax Fund, saying that it created the vibrant arts community we now enjoy and that its purpose was to create or endow a protected fund (original legislation in 1959 and companion state measures that dictate specific funds be specifically allocated) to promote the arts and tourism. He strongly urged the amendment of current law to take out what he described as the "up to" loophole used by the Controller in calculating current Hotel Tax Fund allocations.
Andrew Wood urged that the Arts Task Force bring along the arts community as a constituency for any changes that it may recommend, saying that absent an involved community, political will for change or reform would be practically nil.
There was no further public comment.
This item was continued to the next meeting for further discussion.
- Outreach Strategy
Consideration and possible action to develop and implement public outreach campaign for the Arts Task Force.
This item was continued to the next meeting.
- Update Arts Task Force Member Designation
Motion to recommend amendment to the authorizing legislation to add an appointee of the Film Commission as an ex officio nonvoting member, duly made and seconded, passed without objection.
- New Business
James Tracy of Land and Liberty Coalition was recognized by the Chair to bring the issue of the Request for Proposals (as recommended by the Surplus Property Citizens Advisory Committee) for mixed housing and arts use of 155-165 Grove Street, the current site of the Arts Commission Gallery, to the attention of the Arts Task Force for comment and possible endorsement of the project concept.
There was no public comment on this item.
- Public Comment
There was no additional public comment.
- Adjournment
There being no further business, on motion duly made and seconded, the meeting was adjourned at 5:11 p.m.
5/12/05 DW/spr
