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1967/01/189919 Ci__~y_ Ha~l Anaheim California COUNCIL MINUTES - Jan~ar 18 1967 10:00 AoM~ The City Council of the City of Anaheim met in Adjourned Regular session~ PRESENT: ABSENT: PRESENT: COUNCILMEN: Dt~tton, Pebley, Schutte, Chandler and Krein: COUNCILMEN: None CITY MANAGER: Keith A~ Murdoch~ ASSISTANT CITY MANAGER: Robert Davis, CITY ATTORNEY: Joseph Geisler° DEPUTY CITY ATTORNEY: Alan Watts~ CITY CLERK: Dene M. Williams. STADIUM AND CONVENTION CENTER MANAGER: Tom Lieglero The meeting was called to order by Mayor Krein who announced that the purpose of the Adjourned Regular Meeting was to further consider proposed contract with Madison Square Garden Corporation; that action was deferred from the meeting of January 17th to allow for a meeting between the City Manager, City Attorney and Mr. Danny Dare and Mr. Tommy Walker, Councilman Chandler withdrew from the Council Table and took no part in the meeting because of possible conflict of interest. Mr, Murdoch reported that the meeting with Mr. Dare and Mr. Walker was very helpful One of the areas of concern was the type of events to be staged, what would be considered competitive and noncompetitive, and who would ~ake this determination. Concerning this provision, primarily, the city would make the determination after consultation with the exhibitor; however, there is a possibility that the city's determination may be contrary to that of the exbibitor. Mr. Murdoch further advised that many of the types of events that Mr. Walker might be interested in scheduling in the arena, would definitely be considered competitive, and the contract as proposed gives Madison Square Garden the exclusive booking rights for most events in the entertainment field, which would mean that the booking arrangements would be made through Madison Square Garden rather than the city. Mr. Murdoch reported that another area discussed was the fact that no minimum guaranteed return to the city was provided for in the contract, and although the probability was remote, it could be possible that the types of events played in the area would bring a small return to the city and still meet the minimum requirements outlined in the contract. A minimum guarantee was discussed during negotiations and this was not a practical thing for Madison Square Garden, Mr.~ Murdoch was of the opinion however, that unless the activities carried forward under the contract returns to the city at least what could be reasonably expected without the contract, it would not be good for the city, and further suggested that perhaps an amount could be established that the city should realize each year or an average over a five year period; the established figure being an amount that would make this a good contract for the city However, if a minimum figure is established with an option to terminate the contract after a period of years should the established figure not be reached, this provision should be included in the contract. This provision has not been discussed with Madison Square Garden. Councilman Pebley suggested this audit on returns to the city be at a five year intervals. Mr. Murdoch was of the opinion that Madison Square Garden did not intend to meet the minimum requirementsof the contract; however, an in- centive clause should be provided so that their best efforts are put forth. Mr. Geisler referred to the discussion held during negotiations with Madison Square Garden, and advised that the method described by 9920 .~naheimt California - COUN(]IL MINUTES - Januar 18 1967~0:00 A,Mo. Mr. Murdoch was a different ~pproach, as it was not a matter of limitation on time or a guarantee to the city, it was a matter of returns to the city, and in his opinion, would not be objectionable to Madison Square Garden. Councilman Dutton suggested as an assistance in obtaining the desired goals, all productions under the contract should read "Madison Square Garden Presents" Mr. Murdoch advised that this was discussed in the last session held in New York, and there was no disagreement on this point, and perhaps this provision should be included in the contract after working out the exact wording. Mr. Tom Liegler reported that Mr. Danny Dare and Mr. Tommy Walker both favored an agreement between the City of Anaheim and Madison Square Garden~ Mr. Danny Dare was of the opinion that the points under discussion could be resolved. He reported Madison Square Garden to be a reputable organization and recommended the city entering into subject agreement. Mr. Murdoch suggested it might be advisible either by letter of intent or possible inclusion in the contract, to have an explicit understand- ing as to what Madison Square Garden's approach might be in dealing with other oromoters and booking agents, as the city will undoubtedly be contacted and could be helpful to Madison Square Garden when approached by various pro- ducers and booking agents, by pointing out ,~¢hat reasonably could be expected. There are many people in this activity, and it was very possible that Madison Square Garden ~ould like to utilize some of these other events. Mr. Leo Freedman advised that in the original negotiations it was determined that events are to be billed as "Madison Square Garden Attractions Presents", at no time ~as there a challenge to the no minimum guarantee situation, and if a figure is established by the city that is considered :reasonable by Madison Square Garden, in his opinion this would pose no problem. Mr. Freedman further suggested that the changes discussed at this meeting be accomplished by letter rather than changing the contract as presently written. Mr. Murdoch felt that the approach to assurance of returns and use of the name would necessarily have to be incorporated into the contract and agreed other matters might be taken care of by letter of clarification. Mr. Murdoch briefly reported on the discussion and understandings reached as to the approach to advertising, being the intentions of Madison Square Garden to keep advertising at a minimum in the arena and in extremely good taste. Also briefly discussed was the provision pertaining to television. Mr. Murdoch stated that the staff had negotiated with Madison Square Garden in good faith and have submitted a recommended agreement and specific direction is now needed from the City Council. Discussion was again held relative to the arbitrary figure below which the contract would not be favorable for the city, and Mr. Murdoch stated that this would require some calculations that would take a little time~ During the meeting, at various times, each individual Councilman expressed interest and agreement with the concept of the contract. ADJOURNMENT: At the conclusion of the discussion, Councilman Pebley moved to adjourn to Friday, January 20, 1967, 3:00 O'Clock P.M. to allow further ne- gotiations relative to suggested changes and additions to the contract. Councilman Schutte seconded the motion. MOTION CARRIED. SIGNED: /-- % City Clerk