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1976/08/18 76-592 Cultural Arts Center, 931 North Harbor Boulevard, Anaheim, California "'-- COUNCIL MINUTES - August la, 1976, 6:30 P.M. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Kaywood, Seymour, Kott and Thorn COUNCIL MEMBERS: Roth CITY MANAGER: William o. Talley CITY ATTORNEY: Alan R. Watts DEPUTY CITY CLERK: Linda D. Roberts FINANCE DIRECTOR: Michael Moore UTILITIES DIRECTOR: Gordon Hoyt ASSISTANT CITY MANAGER: William T. Hopkins _.,-. Mayor Thom called the meeting to order at 6:30 P.M. and announced that this adjourned regular session was scheduled to further consider the proposed mea- sures to be placed on the November 2, 1976 ballot. Mr. Watts explained that in the draft resolution dated August 18, 1976, proposed for Council adoption, he had taken the language suggested by Councilman Seymour at the meeting of August 17, 1976 for a "straw vote" as to whether or not the City should change its form of government from a Council-Manager form to Council- Mayor, and had prepared Proposition No.1, as shown, "Shall the City Council formulate and propose for adoption a Mayor-Council form of government instead of the current Council-Manager form of government? YES/NO." Mr. Watts reported that there is little change in the remainder of the ballot proposition as recommended for placement by the Council with the exception of Item No.4, which reflects the wording he would propose to cover the restriction in transfers to the General Fund from electrical and water revenues. The language proposed, according to Mr. Watts, would require that the electric and water rates be established on a cost-for-service basis. The draft of Section 1221 proposed to be added to the Charter by Proposition No. 4 was discussed in detail. Mr. Watts pointed out that $ubparagraph IIf", which refers to the first, second and third year and the limitations of 6%,4%, and 2% of gross revenues, be phrased "gross revenues earned" if used, rather than "gross revenues received." This terminology is used so that it would not be interpreted to mean that amount which is, in fact, received, but would permit the utility to exclude from that amount its accounts receivable in order to be able to pay for cert~a in operation and maintenance costs for services rendered by other City departments to the utility. The method for determining the in-lieu tax rate for utility facilities was discussed, and Mr. Watts pointed out that this would require the installation of a fixed asset accounting system. Councilwoman Kaywood voiced her objection to the inclusion in the ballot measure of the restrictions and elimination of transfer from the Water Department to the General Fund, inasmuch as this was never specifically mentioned in previous discussions. Mr. Talley advised that he had not previously reviewed the proposed ballot measure and was not, until now, aware that restrictions in transfers from Water to the General Fund were also being considered. He noted that one of the recommendations which would be presented for Council consideration in connection with the proposed reduction in the property tax rate would be the postponing of funding for a fixed asset accounting system until the next fiscal year. A restriction of the transfers from the Water Fund to the General Fund represents an additional amount of money which he has never previously discussed with the Council. Councilman Seymour questioned subparagraph "e" as proposed under Section 1221, noting that the intent of this subsection would be to recapture taxes which the utility would be required to pay if it were privately owned. He remarked that while he could accept this concept, he questioned the flexibility provided in the determination of what the ad valorem tax would be. He questioned also whether that tax amount, once determined, increases, decreases, or remains the same over the years. "1T ... cLC ~",-",_cu'~"'e cC' , ,-,,"'- 76-593 Cultural Arts Center, 931 North Harbor Boulevard, Anaheim, California COUNCIL MINUTES - August 18, 1976, 6~30 P.M. Mr. Hoyt explained that the figure would be a historical number, determined on a base year and it would increase as the City adds facilities, decrease as the facilities depreciate. The facilities would not be reappraised each year. The City's tax rate would then be applied to the appraisal figure to determine the in-lieu tax. He advised that he would propose to follow methods prescribed by the Federal Power Commission and California Public utilities Commission for electric and water, respectively, to determine the depreciation; and that there are adopted standards by which the utility could measure its performance. In connection with Councilwoman Kaywood's previously stated concern that the City utility provide in some manner for undergrounding, Councilman Seymour stated that he assumed the language in the ballot proposition as provided would permit the Council the latitude and flexibility to utilize a portion of the bottom line pro- fit for undergrounding of distribution lines if it saw fit to do so. Mr. Watts replied that if the City Council determined that the utility should take a portion to be used for undergrounding, that would be considered either a cost of operation, maintenance or capital construction and as such would be funded through rates, and not out of profit. Councilwoman Kaywood reiterated that she felt it important to establish a fund for undergrounding, with regular contributions, so that in those instances where a street widening requires relocation of power lines, the City would have the funds to underground these rather than relocate the poles. Mr. Watts repeated that undergrounding could be accomplished by funding from current revenues with the proposed ballot language, but emphasized that this could also be done with debt money spreading the repayment out over the life of the facility. Mr. Talley inquired whether the proposed Charter Amendment would prohibit trans- fer from the Electric and Water Utilities to any other fund or from building a substantial surplus, to which Mr. Watts replied that there is the flexibility to create some surplus, but if the kind of fact situation were presented to a court of law wherein electric rates had been established creating huge surplus amounts with no stated purpose for those funds created, that a court would most likely find that to be improper. Prior to closing discussion on the ballot propositions, Mr. Hoyt reported to Council that the area which gives him the greatest concern is the City's water system, since an event such as an earthquake could cause damages to the City's water distribution facility, the repair and replacement cost of which would be far in excess of the amount in the Renewal and Replacement Funds. If such a disaster occurred tomorrow, the soonest the City could get any significant amount of money for replacement and repair of the water system would be in March, 1977, by seeking authorizaüion for bond monies from the voters, since the City can no longer call a special election. For this reason, he urged that the Council consider letting the electorate vote to determine whether or not they wish to delegate authority for issuance of revenue bonds to a utilities commission or to the City Council. Councilman Seymour led discussion with Mr. Talley and other members of the staff and City Council as to the ramifications of the proposed formula for restriction of transfers from the utility fund to the General Fund on future fiscal year program levels, if adopted, during which Mr. Talley advised that the net effect would be a $2.7 million dollar reduction eventually within the years in programs, although next year the reduction could be zero if Council wanted to allow some kind of transfer to continue. four ."... . """"', -M.," .d',..___.,,~. b ,,- :¡,:¿4 Cl.Ltural Arts Center, 931 North Harbor Boulevard, Anaheim, California "-- --- - -" COUNCIL MINUTES - August 18, 1976, 6:30 P.M. MY. Hc;yt cautioned, however, that if the ballot proposition is adopteG as written, and the City's rates are then established on a cost-of-service basis, this places a Lestrj_ction on the Council's ability to fix rates and thereby also on its ability to meet the transfer amounts budgeted. He explained that the current budget is ~predicated upon a 10.8% retail rate increase which is apparently not going to be aut.horized; however, the City I s budget reflects that increasErl amount of $4 million~- from September 1, 1976, through June 30, 1977. Councilman Seymour suggested that such differences might be made up through rate setting between different customer classes, and Mr. Hoyt advised that this would not be possible under the Charter Amendment proposed, as it states that the rates shall be uniform for all and based on cost-of-service for the particular customer class. Mr. Hoyt added that most utilities believe cost-of-service is the appro- priate method for rate making and he would be delighted if such were adopted for Anahe lm. Councilwoman Kaywood inquired whether this proposed ballot language would elimi- nate the life-. line utility rate recently established, and it was reported that this would not affect the City's ability to continue such service. Mr. Watts further explained that if certain utility regulatory agencies were to impose on the City of Anaheim some other methods for establishing rates, the City would have a conflict and the Charter would have to be amended at that time to reflect the change in rate making methods. At the conclusion of discussion, Mayor Thorn stated that he would be in favor of adding Item 4 to the ballot as it is proposed. Councilwoman Kaywood referred to the proposed ballot language she had prepared and submitted to the Council Members regarding the utility rate question, and Mayor Thom advised that he had personally rejected that language as a possibility. Councilwoman Kaywood advised that there was no way she could accept the proposal to restrict the transfer to zero in the fourth year and thereafter, as she felt t.hat to be a "suicidal path" for the City to take. Mayor Thorn moved that Item No.4 be included in the resolution requesting consolidation with the County for the November 2, 1976 election. Councilman Kott seconded the motion. Prior to voting on the foregoing motion, Councilwoman Kaywood voiced her extreme disapproval and Councilman Seymour stated his willingness to adjourn to another date and time in an attempt to achieve some unanimity on the Council in this matter. Councilwoman Ka)TWood then suggested a compromise proposal. Councilman Seymour agreed with the compromise proposal, restricting the transfers to 8% i,~ the first year, 6% in the second year and 4% in the third year and there after; that this be applicable to both the Water and Elèctrical utilities, and, be added, that Subparagraph "e" relating to the means to equate ad valorem taxes be eliminated. He remarked that although this is a compromise from his original position on the matter, he felt it to be a step in the right direction, noting that the percentages would be maximum amounts of transfer, and that the City Council could determine they would transfer' less than that percentage. Councilman Seymour felt that this proposal would provide some guarantee that the profits from the electric utility are returned to the consumers and, on the other hand, still provides the flexibility for the decision-making body to move within an area of reasonableness. ". '" , """"'"" ,c""",".......,..,,--~, _L~ 76-595 Cultural Arts Center, 931 North Harbor Boulevard, Anaheim, California COUNCIL MINUTES - August 18, 1976, 6:30 P.M. Mayor Thorn stated that he felt the compromise proposal prostituted the original promise and he would, therefore, not be in favor of it. Councilman Seymour recalled that the Chamber of Commerce Task Force came up with the recommendation to limit the transfer to not more than 10%. He explained, in response to Councilwoman Kaywood, that the adoption of the Charter Amendment as proposed would mean that in the third year the City Council could not transfer more than 4% of the amount of gross sales to the General Fund, and if they chose not to transfer any monies at all, or less than 4%, they would retain that option; hence, if the electric utility is selling $100 million dollars worth of electric power in future years and the transfer in the General Fund is restricted to 4%, if the profits amount to 25% as promised,there would be a considerable savings transferred to the consumer. Councilman Kott questioned the validity of the promises made under Proposition A in 1975, and Mr. Hoyt recalled that the savings were not promised to begin until 1985; and nothing has happened to change his opinion that once generation facilities in which Anaheim is involved are on line, the City will save money as compared to the costs of purchasing power from Edison. RESOLUTION NO. 76R-506: adoption. Councilman Seymour offered Resolution No. 76R-506 for Refer to Resolution Book. RESOLUTION NO. 76R-506: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REQUESTING THE BOARD OF SUPERVISORS PURSUANT TO SECTION 23300 ET SEQ., OF THE ELECTIONS CODE OF THE STATE OF CALIFORNIA TO CONSOLIDATE A SPECIAL ELECTION OF THE CITY OF ANAHEIM WITH THE STATEWIDE ELECTION TO BE HELD IN NOVEMBER, 1976. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCI L MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour and Thorn Kott Roth The Mayor declared Resolution No. 76R-506 duly passed and adopted. Mayor Thom clarified that his affirmative vote on the above resolution is cast very reluctantly in order to salvage the work performed by the Charter Review Committee by placing the other measures recommended on the ballot; that he strongly disagrees with the compromise proposal on Proposition 4. RECESS: By general consent, the Council recessed for ten minutes. (7:50 P.M.) AFTER RECESS: Mayor Thorn called the meeting to order, all Council Members being present with the exception of Councilman Roth,for the purpose of meeting with the Cultural Arts Commission and Anaheim Foundation for Culture and the Arts Board of Directors. (8:00 P.M.) .... . ¡ -~ - I ..-.._"-~,-.,~.....k", . ,_h~- t) - r; 96 (è¡Jtural A.rts Center, 931 North Harbor Boulevard, Anaheim, California --~--- ~QQ~CI];._M~NUTE.§_:_~~!J~.§!-.!~.!.._l276~ 6:30 P.M. PRESENT: CULTURAL ARTS (O!V:KISSION tlŒMBERS: PRESENT; Jack EroWTI, Martin Sklar, Mary Jones, Ruth Salaets~ and Earl Dahl. ANAHEIM FOUNDATION FOR CULTURE AND THE ARTS BOARD MEMBERS: Ruth Salaets, Elsie Reed, Bernard Smith, June Brittain, Marguerite Lee, Bob Hutchison, Jim Webb, Ray Campbell, Ken Dills, Patricia Jones,. Gladys Wallace, Robert Anthony, Robert Hildt, Jim Gillette, Russell Ireland, John E. Malmquist DEPUTY CITY ATTORNEY; Frank A. Lowry, Jr. DEPUTY CITY CLERK: Linda D. Roberts PARKS, RECREATION AND THE ARTS DIRECTOR: Jim Ruth RECREATION SUPERINTENDENT: Lloyd Trapp RECREATION SUPERVISOR: Patsy Ray PRESENT: Prlar to the meeting, booklets were forwarded to the Council containing descrip- tive and informative materials relating to the establishment, history and function of the Cultural Arts Commission. Informal discussion between the City Council, Cultural Arts Commission and Foundation members was held covering the following topics: 1) the role of the Cultural Arts Commission in coordinating activities; 2) the role of the Anaheim Foundation for Culture and the Arts in the operation of the Cultural Arts Center; oànd J) tile function of the Cultural Arts Center in the colT1munity. Mr. Jack Brown, acting as interim-Chairman of the Cultural Arts Commission, advised that the reason the Commission forwarded a letter requesting this joint work session was because of their concern about the activities and role of the Commission. HE: not:ed that the term "fragmentation of representation" has been used in relation to Cultural Arts efforts in the Conununity, and that the Conunission has be. en aware of this and worked diligently towards drawing the different ele- ments within the community together. The Cultural Arts Commission has felt that a consolidation of the cultural activities in the community would lead to the Cultural Arts CentEr or some other like facility becoming the focal point of community-wide efforts and part of their frustration is that this has not been accomplished. Mr. Brown emphasized that another factor which precipitated the letter sent to the Council requesting this session was the fact that the Cultural Arts Center is not fulfilling the objectives which the Commission originally felt it should, j.e , act as the focal point for the operation of cultural efforts both of the Foundation and of City agencies to service the needs of the community, including the citizens, students and schools on an ongoing basis with professional management and professional1,/ trained directors. Therefore, he noted the Commission is advocating that some type of expanded professional direction be given to the Cultural Arts efforts within the community in whatever form the Council sees fit to establish. Acting Chairman Brown called for comments from other commissioners and the work being performed in subcommittees in relationship to the possibilities of museums and other cultural ("fforts as part of the redevelopment program was outlined by Commissioner Dahl. In response to questions from some of the Commissioners as to the functional rela- tionship, if any, between the Cultural Arts Conunission and the Foundation, it was pointed out by Mr. Smith that the Foundation was formed to handle the monies which were solicited, as a non-profit enterprise, and is so incorporated in the State of California. He noted that a good many people have made donations on that basis, i.e., that the Center would not be supported nor operated by the City. "tWf ~ -c.. .,~'n""-....""'. ,,-~~., . c.c'c . 76-597 Cultural Arts Center, 931 North Harbor Boulevard, Anaheim, California COlmCIL MINUTES - August 18,1976,6:30 P.M. Mr. Lowry reviewed the terms of the lease with the Cultural Arts Center from the School District to the City and the Sub-lease Agreement between the City and the Foundation noting that the City had certain obligations for restora~ion of the exterior and the Foundation overtook the responsibilities for the interior of the building. He noted, however, that to his knowledge there is no relationship between the Cultural Arts Commission and the Foundation, either in the ordinance establishing the Cultural Arts Commission or in either of the leåse agreements; and, further, there is no relationship between the Cultural Arts Commission and the building itself. Commissioner Sklar stated that from the point of establishment of the Anaheim Foundation for Culture and the Arts forward, there has been a basic change in the relationship between the Cultural Arts Commission and the community since there was no longer an individual single voice or forum for culture and the arts. He noted that the Commission has no control over expenditure or even recommenda- tion regarding the maintenance of the Cultural Arts facility. Therefore, there is a major activity center disconnected from the Commission. Commissioner Sklar stated that as an ad hoc committee, the Cultural Arts Commission has no defined goals and objectives, and does not generate plans and programsi it is in a nega- tive position because it has no focus and does not represent the community. He remarked that he felt the Commission needs to rise above factions and personali- ties and find a way to work together 50 that it might become truly representative of the community needs. Commissioner Sklar pointed out that it was his specific understanding that there would be Drofessional direction at the Cultural Arts Center and the School Board ..I- has made known its concern that this has not happened. Mrs. Salaets stated that the Foundation and Board would appreciate receiving such recommendation and comment about a professional director from the School Board by letter, as she has not received any correspondence on the subject during her term as President of the Anaheim Foundation for Culture and the Arts. She pledged the cooperation of the Foundation to work these matters out with the School Board and others in the community. Other members of the Foundation called attention to the fact that their funding is very limited and it would be difficult to support the salary of a professional director at the current budget level. General discussion was held about the incorporation and administration of the Arts program by the Parks, Recreation and the Arts Department of the City. The need was generally stated for cooperation and coordination between the Cultural Arts Commission, various art organizations throughout the City and the Parks, Recreation and the Arts Department. It was suggested by Commissioner Sklar that a similar approach to the organization of this function be used as was used in establishing the sports council which has proven very successful. Mrs. Elsie Reed, member of the Anaheim Arts Council, explained their makeup and functions. Mr. James Ruth summarized that as best he could describe from his first six months as Parks, Recreation and Arts Director, and from what he has observed this evening it appears personality conflicts are a part of the problem, which is not at all unique to Anaheim. He stressed that although he felt the Parks, Recrea- tion and the Arts Department should have a role in the arts area, it should not be a dominating position. He felt that there are some good resources in the community for development of an arts program, but did not feel the Cultural Arts Commission should seek role definition, or establishment of goals and objectives from the ."" "~"""-".._,,._>" ".. ".",. ."'.-.""- -, 6 -- 598 Cult.ura.l Arts Center Center, 931 North Harbor Boulevard, Anaheim, California -'---- .._- COUNCIL MINUTES - August 18, 1976, 6:30 P.M. City Council, but rather the latter items should be developed in conjunction with his Department. He stated that he thought there is a need for broader representation on the Commission and commented that the sports council is representative of all sports organizations and their needs in the community with the end result in it having been very successful. He concluded that to develop an a;:lequate arts program .it would require that the resources in the City be maximized and this can only be accomplished by working together. From a practical vie~~oint, he remarked that he could not see how the City Council could respond to as many arts organizations as there are in the City, and that the Commission does have a role in coordinating the arts efforts,but needs some reorganization. At the conclusion of discussion, Mayor Thom stated that he felt further dis- cussion at this time would be unproductive; that the Commission, Foundation and the Department are going to have to go into workshop sessions and then make their proposals to the City Council. Prior to concluding the meeting, Mr. Lowry requested that the members of the Cultural Arts Commission remain for a brief meeting to discuss a responsibility charged them by the City Council. FREDERICK LITTLE HOUSE: Brief discussion was held with Mr. Andy Deneau of the Heritage Co~mittee relating to the proposal to relocate and retain the Frederick Little Home currently located on Broadway between Euclid Avenue and Manchester. Councilwoman Kaywood stated that because of her concerns as to the costs involved with the moving and restoration of this structure, she had requested that the Planning Director, Mr. Ron Thompson, review the house and she noted that Mr. Thompson's cost estimates were somewhat in excess of the figures previously presented t:o Council. Councilwoman Kaywood felt it important that Council be made aware at the outset of what their total commitment would be and that they not commit to an open-ended agreement. Mr. Andy Deneau stated that he is not recommending the City spend any funds for restoration of the building; that they are attempting to establish an account to receive and administer funds from the private sector for restoration. He assured Council Members that to proceed with this project he would need from the Cityt.he sum of $1,835 in addition to the $685 previously approved for costs involved in the temporary moving of power lines and railroad equipment in order t:o move the ~tructure. The sum of $3, 000 would be required from the Community ~evelopment Block Grant budget set aside for the saving and restöratiön of historical structures; and this amount would cover the cost to place the building on a foundation ~','i th street connections for sewer, public utili ties and water. CouncIlwoman Kaywood inquired as to whether a site had been selected and once the structure was removed and restored, who then would be responsible for maintenance. Mr. Deneau stated that they had three sites under consideration; one at 1000 West Sycamore Street, which is intended to be a temporary location, but if it proves feasible and agreeable to leave the house at that lqcation they would do so. Exterior maintenance, should the home remain under ownership of the City and not leased Gu~would be the City's responsibility. On discussing this maintenance with Mr. Ruth of the Parks, Recreation and the Arts Department, it was reported to be minimal. Mr. Deneau noted that the City Parks, Recreation and the Arts Department does similar exterior maintenance at other locations in the City. MOTION: At the conclusion of discussion, Councilman Thom moved to appropriate $1,850 from the Council Contingency Fund for deposits and expenses incurred in the moving of the Frederick Little House. Councilman Seymour seconded the motion. Councilman Roth was absent. Councilwoman Kaywood voted "No". MOTION CARRIED. ...,- " ._...C~"""'c"""."".. 76-599 Cultural Arts Centerþ C)Jl:'.Jorth Harbor Boulevarclþ Anaheimþ California COU;rCIL nlnUTES - ¡',ugust 18þ 1976, 6:3() J>.N. ADJOUlt:JHr::JT: Counci1nan Seymour f"oved to adjourn. rouncilman Kott seconded the motion. NOTIon CAl\RIED. /\dj onrned: 10:00 P.H. ALmJA \1. EDUGARD, CITY CLEPJ( By: "~ 1 Þ.~ ^:.~.¿"Z~ .. Deputy , "'1ft' - -F ---- .,- "-.-..",..=--"-,,.J-.--. "._",-, - .-........