RA1976/05/0476 -43
ANAHEIM COMMUNITY DEVELOPMENT COMMISSION
MAY 4, 1976, (1 :00 P.M.)
Council Chamber
Anaheim City Hall
PRESENT: COMMISSIONERS: Kaywood, Seymour, Kott, Roth and Thom
ABSENT: COMMISSIONERS: None
PRESENT: EXECUTIVE DIRECTOR: Keith A. Murdoch
CITY ATTORNEY: Alan R. Watts
DEPUTY CITY CLERK: Linda D. Roberts
DEPUTY CITY ATTORNEY: Malcolm Slaughter
Chairman Thom called the Regular Meeting of the Anaheim Community
Development Commission to order at 1:05 P.M. for the purpose of
sitting as the Anaheim Redevelopment Agency and the Anaheim Housing
Authority.
MINUTES: On motion by Commissioner Kaywood, seconded by Commissioner
Seymour, minutes of the Regular Meeting held April 27, 1976, were
approved. MOTION CARRIED.
REPORT - FINANCIAL DEMANDS AGAINST THE COMMUNITY DEVELOPMENT COMMISSION:
Demands against the Redevelopment Agency and the Housing Authority,
in the amounts of $10,499.82 and $3,292.68, respectively, in accord-
ance with the 1975 -76 Budget, were approved.
I. ANAHEIM REDEVELOPMENT AGENCY: The following matters were con -
sidered by the Anaheim Redevelopment Agency:
LASERIUM ORANGE, INC. - NEGOTIATING AGREEME LASERIUM DOME THEATER
PROJECT ALPHA: Mr. Michael Levin, Vice President - Corporate Develop-
ment for Laser Images, Inc., was invited to address the Redevelop-
ment Agency and advised that Laserium is essentially a new medium
of entertainment, utilizing a laser beam which is a powerful
instrument of light amplification and has a capacity of producing
pure colors to create 3 -D illusions for abstract musical entertain-
ment in a theater. The first concert was given in November of 1973,
and the medium received a very favorable public response. Currently
there are nine concert theaters in the United States, and one con-
structed especially for that purpose in Kyoto, Japan. The dome -like
structure of planetariums has proved ideal for use in putting on
these concerts. There have been over 500,000 people in attendance
to date at the Griffith Park, Los Angeles, concerts.
The proposal is to construct a spherical theater within Project
Alpha in close proximity to the projected space park and museum,
where the world's largest film format will be presented, similar to
the one which is shown in the Reuben H. Fleet Space Theater in
Balboa Park, San Diego. Since many of those attending the Griffith
Park concerts come from Orange and Riverside Counties, and the
Anaheim area attracts people from all over the world, it is felt
this would be an ideal location for the project.
Commissioner Roth commented on the excellence of the Griffith
Park showing, noting that it was an experience which gave enjoyment
to all ages. He was of the opinion that the proposed theater would
be an asset to the city.
76 -44
Community Development Commission Minutes - May 4, 1976, 1 P.M.
Anaheim Redevelopment Agency, Continued:
Commissioner Kaywood advised that the Laserium exhibit dis-
played at the Carrousel of Anaheim, held at the Convention Center
April 29 through May 1, 1976, was an interesting new concept.
Executive Director Keith A. Murdoch noted the recommendation
of the Community Redevelopment Commission that a negotiating agree-
ment with Laserium Orange, Inc. be approved and executed for the
development of a Laserium Concert Theatre along the south side of
the present Lincoln Avenue, between Philadelphia and Olive Streets.
Commissioner Seymour questioned whether, in order to estab-
lish a market of success, the developers would be dependent upon
the development of the projected space park, and whether they would
lose interest, if the park did not become a reality.
Mr. Levin replied that, compared to other cities in the country,
Los Angeles has not begun to exhaust its potential for the Laserium
concerts, and he noted the long lines waiting for tickets at
Griffith Park, in spite of the extremely minimal advertising which
they do. In his opinion, it would be an advantage to have the
space park in the immediate area;,however taking into considera-
tion the tourist orientation of this city, with Disneyland and
other nearby attractions, it was felt the concept was feasible
with or without the space park.
Responding to additional questions by Commissioner Seymour,
Mr. Levin stated that if the land were available, plans for con-
struction were approved, and parking facilities could be provided, •-•,
they would be prepared to commence construction immediately,
pending completion of current arrangements for capitalization.
RESOLUTION NO. CDC76 -16:
No. CDC76 -16 for adoption.
Commissioner Seymour offered Resolution
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION, ACTING AS
THE REDEVELOPMENT AGENCY, AUTHORIZING AND DIRECTING THE PREPARATION
OF AN EXCLUSIVE RIGHT TO NEGOTIATE FOR THE REDEVELOPMENT OF A POR-
TION OF PROJECT ALPHA. (Laserium - Orange, Inc.)
Roll Call Vote:
AYES:
COMMISSIONERS:
Kaywood,
NOES:
COMMISSIONERS:
None
ABSENT:
COMMISSIONERS:
None
Seymour, Kott, Roth and Thom
Chairman Thom declared Resolution No. CDC76 -16 duly passed and
adopted.
RESOLUTION NO. CDC76 -17: On report by the Executive Director that
during the current fiscal year, sufficient tax revenues have been
received to allow repayment by the Redevelopment Agency to the
City of $4,000,000 loaned for financing redevelopment projects
under terms of the agreement between the Agency and the City dated
August 5, 1975, Commissioner Seymour offered Resolution No. CDC76 -17
for adoption.
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION, ACTING AS
THE REDEVELOPMENT AGENCY, AUTHORIZING AND DIRECTING THE REPAYMENT
OF A LOAN OF MONIES BORROWED FROM THE CITY OF ANAHEIM.
76 -45
Community Development Commission Minutes - May 4, 1976, 1 :00 P.M.
Anaheim Redevelopment Agency, Continued:
Roll Call Vote:
AYES:
COMMISSIONERS:
Kaywood,
NOES:
COMMISSIONERS:
None
ABSENT:
COMMISSIONERS:
None
Seymour, Kott, Roth and Thom
Chairman Thom declared Resolution No. CDC76 -17 duly passed and
adopted.
ORANGE UNIFIED SCHOOL DISTRICT AGREEMENT - REQUEST FOR INTERPRETATION:
City Attorney Alan Watts briefed the contents of memorandum report
dated April 27, 1976 (copies furnished each Commissioner), advising
of communication dated April 2, 1976, received from Mr. Harry H.
Platt, Business Manager for the Orange Unified School District,
requesting clarification of Article B2, Section 202, of the agree-
ment between the School District and the Anaheim Redevelopment
Agency for financial participation in the construction of an
elementary school to serve families within Project Alpha. Said
section states that a second payment to the School District be
made on the 120th day following award of the contract for construc-
tion of the facility. Mr. Watts was of the opinion that at the
time of the execution of said agreement, all parties contemplated
that a single construction contract would be awarded; however
subsequently, the School District determined to award separate
construction contracts. In order to define the Agency's payment
obligation date, the District suggests that the date of awarding
one of the major construction contracts, March 4, 1976, be
established as the commencement of the 120 -day period.
In response to questions by Commissioner Kott, Mr. Watts
reported that most of the major contracts for the school construc-
tion have been awarded. It was noted that the grading has been
done and the structural steel has been erected.
For the benefit of the two new Commissioners, Mr. Murdoch
gave a brief background of the financial participation by the
Redevelopment Agency in the construction of the Imperial Elementary
School at Imperial Highway and Nohl Ranch Road.
Commissioner Seymour moved that the City Attorney be instructed
to notify the Orange Unified School District that the Redevelopment
Agency concurs with the March 4, 1976 date of the award of the
construction contract for the purposes of determining the Agency's
obligation to pay under Section 202 of the agreement, as recom-
mended. Commissioner Kott seconded the motion. MOTION CARRIED.
REDEV E L OPMENT AGENCY - INTEGRATED FINANCIAL AND MANAGEMENT CONTROL
SYSTEM: Mr. Murdoch summarized memorandum report from the Community
Development Director recommending that as result of the Arthur
Young and Company management review of the Community Development
Department, a critical need was identified for an integrated
financial and management control system. He expressed concern
that such a system be tied to the beginning of the next fiscal
year, commencing July 1, 1976. The system should be related as
closely as possible to the financial and management control system
for the entire city; therefore, it is recommended that Arthur Young
and Company provide the system, and that the split of participation
funding for the consulting services be 84% from the Redevelopment
Agency, 8% from Housing Assistance, and 8% from the Community Devel-
opment Block Grant Program.
76 -46
Community Development Commission Minutes - May 4, 1976, 1:00 P.M.
Anaheim Redevelopment Agency, Continued:
Commissioner Roth recognized the fact that the Arthur Young
Company is familiar with the operations of the City, however, he
expressed concern that, inasmuch as state and federal funds would
be utilized, it might be well to invite proposals from other top
accounting firms in Orange County.
Mr. Murdoch pointed out that the primary concern in this
instance was the actual responsibility for developing or modifying
the City's financial and management control systems, and the need
to tie these two systems together as closely as possible. Under
other circumstances, other proposals from firms having the
capabilities would undoubtedly be solicited.
In answer to question by Commissioner Kott, Mr. Murdoch
reported that currently there are twenty -two employees in the
Community Development Department.
Commissioner Kott inquired why, in a department of twenty -two
employees, the proposed financial and management control system
could not be established in an objective manner under the guidance
of the Executive Director and the Community Development Director.
Mr. Murdoch replied that he personally did not have the fin-
ancial background to come up with the kind of system which is
contemplated for the entire City, nor for the Community Development
Department; that only one member of- staff has.rather_ substantial
accounting experience. In addition, there is the need for the
system to be readied for the next fiscal year, and if the work were
to be done by the existing staff, it would result in separation
from the responsibility for the work for which they were employed,
and a slow -down in the entire program. Arthur Young and Co. have
estimated that the preparation of the system will involve approxi-
mately 285 man hours, and they will work together with the staff
and will provide the financial principles and basic management
control portions of the program.
Commissioner Seymour expressed the opinion that the City does
not maintain the expertise to establish the system, and if experts
were employed, there would be no reason to retain them when the
project is completed; therefore, a consulting firm is the logical
solution. He noted the rapid growth of the Community Development
Department in personnel and in budget, and the probable continued
growth in the future. He noted the urgency of achieving the capa-
bility of demonstrating to the citizenry an early cost accounting
of what has been accomplished in the redevelopment program.in
order to pinpoint the cost of any particular project and to retain
the credibility ; of the entire redevelopment process. He pointed
out that any other consulting firm would be unable to complete the
necessary work before September or October of this year.
Commissioner Roth stated he did not question the need for the
establishment of the system. However, he felt there should be
room to allow investigation of what other firms can do and for
what price. Although he was aware of the time element involved, he
felt either the work should be done with in -house staff, or pro-
posals should be invited, and he would support the firm offering
the lowest fee.
Commissioner Thom advised that the proposed fees have been
checked and found to be within five per cent of those which would
be charged by any of the eight largest firms in the area.
76 -47
Community Development Commission Minutes -_Ma 4, 1976, 1 P.M.
Anaheim Redevelopment Agency, Continued:
Commissioner Kott advised he had no quarrel with the proposed
establishment of an integrated financial and management control
system.
Mr. Murdoch pointed out that the housing program is well under
way, and it is necessary to obtain the control mechanism before
said program and the active.mode of acquisition for relocation get
too far along.
On motion by Commissioner Thom, seconded by Commissioner
Seymour, the City Attorney was instructed to prepare an agreement
for execution by the Redevelopment Agency and Arthur Young and Co.,
as proposed by that company and as recommended by the Community
Redevelopment Commission. To this motion, Commissioner Roth voted
"No ". MOTION CARRIED.
II. ANAHEIM HOUSING AUTHORITY: The following matter was considered
by the Anaheim Housing Authority:
HOUSING AUTHORITY -
SYSTE PARTICI
See preceding item for discussion)• On motion
by Commissioner Thom, seconded by Commissioner Seymour, the City
Attorney was instructed to prepare a reimbursement agreement between
the Housing Authority and the Redevelopment Agency to provide for
funding the Authority's portion of the proposal by Arthur Young and
Company for the Integrated Control System. To this motion, Commis-
sioner Roth voted "No." MOTION CARRIED.
ADJOURNMENT: There being no further business before the Anaheim
Redevelopment Agency or the Anaheim Housing Authority, Commissioner
Kaywood moved to adjourn. Commissioner Seymour seconded the motion.
MOTION CARRIED,
ADJOURNED: 1:53 P.M.
ALONA M. HOUGARD, SECRETARY, ANAHEIM COMMUNITY DEVELOPMENT COMMISSION
INTEGRATED FIN ANCIAL AND MANAGEMENT
SIGNED: r:- �:,�1/1 p DEPUTY