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1967/02/079948 City Hall, Anaheim~ California - COUNCIL MINUTES - January 31, 1967, 1:30 P.M. RESOLUTION NO. 67R-74: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DENYING CONDITIONAL USE PERMIT NO. 906. Roll call vote: AYES: COUNCILMEN: NOES: COUNCILMEN: ABSENT: COUNCILMEN: Pebley, Schutte, Chandler and Krein Dutton None The Mayor declared Resolutions Nos. 67R-73 and 67R-74 duly passed and adopted. ADJOURNMENT: Councilman Pebley moved to adjourn. Councilman Chandler seconded the motion. MOTION CARRIED. ADJOURNED: 8:30 P.M. City Clerk City Hall, Anaheim, California - COUNCIL MINUTES - February 7, 1967~ 1:30 P.M. The City Council of the City of Anaheim met in regular session. PRESENT: COUNCILMEN: Pebley, Schutte, Chandler and Krein. ABSENT: COUNCILMEN: Duttono PRESENT: ASSISTANT CITY MANAGER: Robert Davis. CITY ATTORNEY: Joseph Geisler° CITY CLERK: Dene M. Williams. CITY ENGINEER: James ?. Maddox. DEVELOPMENT SERVICES DIRECTOR: Alan G. Orsborno ASSISTANT DEVELOPMENT SERVICES DIRECTOR: Robert Mickelson. ZONING SUPERVISOR: Ronald Thompson. ASSOCIATE PLANNER: Marvin Krieger. FINANCE DIRECTOR: Douglas Ogden. CONVENTION CENTER AND STADIUM DIRECTOR: Tom Liegler. Mayor Krein called the meeting to order. INTRODUCTION: Mayor Krein introduced and welcomed students of the St. Justin Martyr Civics Club, in attendance at today's meeting. INTRODUCTION: Safety and Training Coordinator Thomas Tyre introduced new employees taking part in personnel orientation. PROCLAMATION: Mayor Krein proclaimed the month of February as Philharmonic Penny Parade Month. Said proclamation was unanimously ratified by the City Councils MINUTES: Minutes of the Anaheim City Council Meetings held January 17 and 24, 1967, and Adjourned Regular Meetings of January 18 and 20, 1967 were approved on motion by Councilman Schutte, seconded by Councilman Pebley. MOTION CARRIED° WAIVER OF READING - ORDINANCES AND RESOLUTIONS: Councilman Pebley moved to waive the reading in full of all ordinances and resolutions, and that consent to the waiver of reading is hereby given by all Councilmen, unless after reading of the title, specific request is made by a Councilman for the reading of such ordinance or resolution~ Councilman Schutte seconded the motion. MOTION UNANIMOUSLY CARRIED. 9949 City Hall, Anaheim, California -COUNCIL MINUTES - Febr__uary 7, 1967, 1:30 PoMo REPORT ~ FINANCIAL DEMANDS AGAINST THE CITY: Demands against the City in the amount of $234,384~99, in accordance with the 1966.~67 Budget, were approved. CONDITIONAL USE PERMIT NO. 256 - EXTENSION OF TIME~ Request of Ann Paulus, dated January 16, 1967, was submitted for one year extension of time to temporary waiver of block wall construction, required by Condition Noo 5 of Resolution Noo 62R-688, granting Conditional Use Permit No~ 256~ One year extension of time was granted by the City Council, on motion by Councilman Pebley, seconded by Councilman Schutte~ MOTION CARRIED° REQUEST WAIVER OF BUSINESS LICENSE: Communication dated January 16, 1967 from Mrs. Afton Minson, Executive Chairman of the Garden Grove Stake Relief Society, Church of Jesus Christ of the Latter Day Saints, was submitted requesting permission to establish a nonprofit retail clothing store at 1713 West Katella Avenue, and for a waiver of business license fees. In answer to Council questioning, Assistant Development Services Director Robert Mickelson reported that the property is zoned C-l, and the requested use would be allowable at the location in question~ On motion by Councilman Schutte, seconded by Councilman Pebley, the City Council granted waiver of business license fees, and permission to establish a nonprofit retail store as requested. MOTION CARRIED~ CITY PLANNING COMMISSION ITEMS: Actions taken by the City Planning Commission at their meeting of January 16, 1967 pertaining to the following applica- tions, were submitted for City Council information and consideration: CONDITIONAL USE PERMIT NO. 911: Submitted by Fredricks Development Corporation requesting permission for on-sale liquor in conjunction with a restaurant; C-1 zoned property located on the east side of Magnolia Avenue, north of Winston Road~ Granted by the City Planning Commission, subject to conditions, pursuant to Resolution No~ PC67-9. CONDITIONAL USE PERMIT NOo 914: Submitted by Frank W. and Edith Rose Sackett requesting permission to establish a women's figure salon and related facilities; C-1 zoned property located at the northeast corner of Wilshire and Lincoln Avenues (1253 West Lincoln Avenue). Granted by the City Planning Commission, subject to conditions, pursuant to Resolution No~ PC67-10~ VARIANCE NO. 1788 - EXTENSION OF TIME: The City Planning Commission granted six months extension of time for completion of conditions, as requested by Helen H. Bouck; variance previously granted to permit the sale of art objects in conjunction with residential use of home located at 319 North Harbor Boulevard.. CONDITIONAL USE PERMIT NOo 538 - TERMINATION: The City Planning Commission pursuant to Resolution No. PC67-910 terminated all proceedings on Conditional Use Permit Noo 538, previously granted to establish on-sale beer in con- junction with a restaurant to be located on the south side of Lincoln Avenue, east of State College Boulevard; said termination was in conjunction with public hearing on Reclassification No 66-67.-48 and Conditional Use Permit No. 913, which would supersede subject application~ The foregoing actions ~ere reviewed by the City Council. and no further action taken on the above numbered conditional use permit and ~ variance applications. PROPOSED REVISION MINIMUM DIMENSI~EET PARKING DESIGN: Associate Planner Marvin Krieger briefed City Planning Commission Resolution No~ PC67-20, recommending adoption of a revision to "Minimum dimensions for designing off-street parking layouts", as depicted on Exhibit "A". He outlined the proposed changes, as follows: 9950 City Hall, Anaheim~ California COUNCIL MINUTES - Februar~ 1~30 P~M. (a) Incorporating residential garage or carport standards~ (b) Amending private access drives to reflect 20 foot minimum width. (c) Adding provisions that landscaping would be as required by the in- dividual zone, and parked vehicles may not overhang required landscaping~ (d) Requiring the use of bumper blocks° (e) Original title to be reduced "minimum off-street parking dimensions" In response to Councilman Pebley's question, Mr~ Krieger advised that the parking layout for the Convention Center facilities substantially conforms with the proposed provision. RESOLUTION NO. 67R-75: Councilman Chandler offered Resolution No~ 67R-75 for adoption, adopting revision to the minimum dimentions for designing off-street parking layouts, Exhibit A, as recommended by the City Planning Commission. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING AND APPROVING REVISED STANDARD PARKING LAYOUTS~ Roll call vote: AYES: COUNCILMEN: NOES: COUNCILMEN: ABSENT: COUNCILMEN: Pebley, Schutte, Chandler and Krein None Dutton The Mayor declared Resolution No~ 67R-7.5 duly passed and adopted. GENERAL PLAN AMENDMENT NO. 84: On motion by Councilman Pebley, seconded by Councilman Schutte, the City Clerk was instructed to schedule public hearing before the City Council February 28, 1967, 1:30 PoMo, to consider City Planning Commission Resolution Noo PC67-16, recommending that an amendment to the Circulation Element-Highway Rights-of-Way known as General Plan Amendment Noo 84 be disapproved; West Street, between La Palma Avenue and Broadway to be designated as a secondary highway with exception, and West Street from Broadway to the Santa Ana Freeway to be designated as standard collector street. MOTION CARRIEDo PROPOSED AMENDMENT TO TITLE 18 OF THE ANAHEIM MUNICIPAL CODE: On motion by Councilman Pebley, seconded by Councilman Schutte, the City Clerk was instructed to schedule public hearing before the City Council February 28, 1967, 1:30 P.M. to consider the following proposed amendments to the Anaheim Municipal Code: a. City Planning Commission Resolution PC67-17 recommending an amendment to Title 18 of the Anaheim Municipal Code by the addition of Chapter 18.85, Special Setbacks, as depicted on Exhibit 'TA". b. City Planning Commission Resolution No~ PC67.-18 recommending an amendment to Title 18 of the Anaheim Municipal Code by the addition of Chapter 18~37, C-R, Commercial Recreation Zone thereto, as depicted on Exhibit "A". MOTION CARRIED~ RECLASSIFICATION NO. 66-67-42 AND CONDITIONAL USE PERMIT NO. 905 - REHEARING: The City Clerk read communication dated February 4, 1967 from William A. Toplikar, Authorized Agent, requesting rehearing on Reclassification No. 66-67-42 and Conditional Use Permit No. 905 on the basis of hardship to one of the pro- perty owners, and advising that plans are~being revised to meet the re- quirements of the Anaheim Municipal Code. A brief discussion was held by the City Council, and at the conclusion thereof it was moved by Councilman Schutte, seconded by Council- man Chandler that the City Clerk be instructed to schedule the matter for rehearing before the City Council, subject to payment of a $50 fee; further, that revised plans be submitted to the City Planning Commission for review and report prior to said rehearing before the City Council° MOTION CARRIED° 9951 ~naheim~ California - COUNCI. L MINUTES February 7 1967 1~30 P~M. CONDITIONAL USE PERMIT NO, 677 ~RECLASSIFICATION NO. 64-65-96)_i: The City Clerk read communication dated January 31,'1967 from Leonard G. Smith requesting clarification of Condition No~ 6, Resolution No~ 65R-273 granting Conditional Use Permit No. 677, which condition requires landscaping of the northerly 50 feet (approximately) of property located on the east side of East Street between Romneya Drive and Kenwood Avenue; C-1 zoned property, Reclassification No. 64-65-96. Also submitted and reviewed by the City Council was plot plan of dry~cleaning establishment proposed for said northerly portion of subject property. In answer to Council questioning, the City Attorney reported it was his recollection that the City Council required said landscaping condition to protect residential properties to the north and the east, and in his opinion, a public hearing would be necessary to consider amending the resolution~ Discussion was held by the City Council, it being noted that the public hearing granted just previously pertained to property immediately across the street to the north. Mr. Leonard G. Smith, 125 South Claudina Street, addressed the Council advising that the proposed dry-cleaning pick-up agency would consist of a 750 square foot structure with facilities for drive-in service. On the recommendations of the City Attorney, Councilman Chandler moved that the City Clerk be instructed to schedule public hearing to consider amendment to Conditional Use Permit Nos 677, said hearing to be held at the same Council meeting as public hearing on Reclassification No~ 66-67-42 and Conditional Use Permit No~ 905; further, that plans for the proposed dry-cleaning agency be submitted to the City Planning Commission for review and report. Councilman Pebley seconded the motion. MOTION CARRIED. RECLASSIFICATION NO. 63-64-6213_~ - APPROVAL OF PLANS; Zoning Supervisor Ronald Thompson submitted for Council review plans of development for the James K. Schuler property, 804 South Webster Street, advising that Resolution of Intent No- 64R-200 approving R-3 zoning for certain properties on Webster Street, required Council approval of development plans, He reported that at their meeting held January 30, 1967, the City Planning Commission approved said plans as being substantially in accordance with the R-3 Site Development Standards. Councilman Chandler moved that plans for R-3 development, re- classification No~ 63-64-62(3), be approved as submitted. Councilman Pebley seconded the motion, MOTION CARRIED. PURCHASE - RESERVED PARKING TICKETS~ ANAHEIM STADIUM: Assistant City Manager Robert Davis reported on necessary printing and purchase of 2,400 reserved parking lot ticket books for 1967 at Anaheim Stadium, advising that these tickets must be coordinated with the season tickets for the Stadium in color, dates and reserved areas~ He further advised that Convention Center and Stadium Director Tom Liegler recommends purchase from the company which prints the season tickets, Globe Ticket Company, in an amount not to exceed $4,080.00, the California Angels to pay 50 percent of the cost as a portion of the parking lot operational cost. Councilman Chandler moved that th& quotation of Globe Ticket Company be accepted as the lowest and best quotation received, and purchase of Stadium reserved parking lot books be authorized in the amount not to exceed S4,080.00, and as recommended by the Assistant City Manager, Council- man Schutte seconded the motion. MOTION CARRIED° CLAIM AGAINST THE CITY; Claim submitted by Gunther Baresel on behalf of Mrs~ Rose Baresel, for damages purportedly resulting from collision with a city-owned vehicle on or about December 12, 1966, was denied as recommended by the City Attorney and ordered referred to the Insurance Agent on motio~ by Councilman Chandler, seconded by Councilman Pebley~ MOTION CARRIED, 9952 City Hall~ Anaheim~ California COUNCIL MINUTES - February 7~ 1967~ 1:30 PoM~ ORDINANCE NO. 2353: Councilman Chandler offered Ordinance No~ 2353 for first reading. AN ORDINANCE OF THE CITY OF ANAHEIM, CALIFORNIA, PROVIDING FOR THE ISSUANCE OF MUNICIPAL IMPROVEMENT BONDS OF SAID CITY IN THE AMOUNT OF $2,300,000. RESOLUTION NO. 67R-76: Councilman Chandler offered Resolution No. 67R-76 for adoption. Refer to Resolution Book. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CALIFORNIA, DIRECTING THE CITY CLERK TO PUBLISH NOTICE INVITING SEALED PROPOSALS FOR $2,300,000 MUNICIPAL IMPROVEMENT BONDS, ELECTION 1963, SERIES B, OF SAID CITY~ (Bids to be opened March 14, 1967, 10:00 AoM.) Roll call vote: AYES: COUNCILMEN: NOES: COUNCILMEN: ABSENT: COUNCILMEN: Pebley, Schutte, Chandler and Krein None Dutton The Mayor declared Resolution No. 67R-76 duly passed and adopted. TRANSFER OF FUNDS: On the recommendations of the Assistant City Manager, Councilman Chandler moved that transfer of funds in the amount of $750.00 be authorized from the Council Contingency Account to the Finance Department, Account No. 107-231-361, for the printing and advertising in connection with the sale of municipal improvement bondso Councilman Pebley seconded the motion. MOTION CARRIED. CORRESPONDENCE: The following correspondence was ordered received and filed on motion by Councilman Pebley, seconded by Councilman Chandler: a. Upper Newport Bay Land Exchange Plan: Report to the State Lands Commission. b. Notices of Recordation of State of California - Division of Highways - Relinquishments Nos. 525 and 492 - Resolutions recorded December 27, 1966. Before the Public Utilities Commission - Case No. 8102 - Investigation of various crossings at grade of the lines of The Atchison, Topeka and Santa Fe Railway Company, the Union Pacific Railroad Company, the Southern Pacific Company and the Pacific Electric Railway Company. d. Minutes of Community Center Authority - Meetings of December 19, 1966, and January 9, 1967. MOTION CARRIED~ ORDINANCE NO. 2354: Councilman Pebley offered Ordinance Noo 2354 for first reading. AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 14, CHAPTER 14.32, SECTION 14.32.190 OF THE ANAHEIM MUNICIPAL CODE, RELATING TO PARKING° (No parking, portions of Katella Avenue) ALCOHOLIC BEVERAGE LICENSE APPLICATIONS: The following alcoholic beverage license applications were presented by the Assistant City Manager to the City Council for their information: a. Application submitted by Seaboard Music Company, Incorporated, Samuel F. Holland, President, for Person to Person Transfer of On-Sale Beer license for The Gold Room, 509 South Knott Avenue (C-1 zone, Conditional Use Permit No. 776). 9953 Cit~Hall~ Anahe~California - COUNCIL MINUTES - Februa_~~~l:30 PoM. b. Application submitted by John Theodore Guerini for New Off-Sale Beer and Wine license for the Dutch View Dairy, 600 South Anaheim Boulevard (C-3 zone). No Council action was taken on the foregoing applications~ MID-YEAR SALARY REVIEW: City Council decision on recommendations of the Personnel Director pertaining to mid-year salary adjustments, proposed rate increase for group health insurance for employees, and retirement benefits was continued from the meeting of January 31, 1967 for presentation by the Anaheim Police Officers Association. On the recommendations of the Assistant City Manager, it was moved by Councilman Schutte, seconded by Councilman Pebley that determina- tion on the foregoing issue be deferred for two weeks for further study (February 21, 1966). MOTION CARRIED~ PROPOSED AGREEMENT - SZABO FOOD SERVICE~ INCo OF CALIFORNIA: Determination on proposed agreement with Szabo Food Service Incorporated of California, for food services at the Anaheim Convention Center, was deferred to this date for further review and analysis~ Councilman Chandler advised he had analyzed the p~oposal, and he expressed concern that the proposed contract provides that the city would be responsible for any loss suffered by the concessionaire, which was contrary to his thinking even though the city would retain control of the number of events held in the facility, and of the food pricing and quality. He was of the opinion that such a provision would place the city in a precarious position. On motion by Councilman Chandler, seconded by Councilman Krein, City Council determination on the proposed agreement was deferred one week (February 14, 1967). MOTION CARRIED. RESOLUTION NO. 67R-77: On report and recommendations of the City Engineer, Councilman Chandler offered Resolution No~ 67R-77 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING AN AMENDMENT TO AN AGREEMENT ENTERED INTO ON JUNE 28, 1966 WITH THE ANAHEIM UNION HIGH SCHOOL DISTRICT OF ORANGE COUNTY, RELATING TO STREET IMPROVE- MENTS IN KNOTT AVENUE. Roll call vote: AYES: COUNCILMEN: NOES~ COUNCILMEN: ABSENT: COUNCILMEN: Pebley, Schutte, Chandler and Krein None Dutton The Mayor declared Resolution No. 67R-77 duly passed and adopted. HOME SAVINGS AND LOAN ASSOCIATION - PROPOSED GIFT: Mr. Davis briefed contents of a letter dated February 7, 1967, from Home Savings and Loan Association, advising that the organization desires to present as a gift to the City of Anaheim an Armillary type sun-dial (approximately 60 inches in height including cement base) for placement at a location to be selected by the city. Also submitted and reviewed by the City Council were sketches illustrating the unusual sun-dial. At the conclusion of the briefed discussion which followed, Council decision on the proposed gift was deferred for visual inspection of the sun-dial, and Mro Davis was requested to obtain suggested location for the installation thereof. ANNUAL POPULATION ESTIMATE: Mr. Davis reported on proposed agreement with the State Department of Finance for the annual population estimate, and advised that the city would reimburse the State for costs therefor, in an estimated amount of $545,00. 9954 City ~.all~ An.a.heim~ California - COUNCIL MINUTES February 77 1967~ 1:30 P.~. RESOLUTION NO 67R-78: Councilman Schutte offered Resolution No. 67R-78 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE DEPARTMENT OF FINANCE OF THE STATE OF CALIFORNIA TO MAKE AN ESTIMATE OF THE INCREASE IN POPULATION OF THE CITY OF ANAHEIM. Roll call vote: AYES: COUNCILMEN: NOES: COUNCILMEN: ABSENT: COUNCILMEN: Pebley, Schutte, Chandler and Krein None Dutton The Mayor declared Resolution No. 67R-78 duly passed and adopted. NATIONAL LEAGUE OF CITIES THIRD ANNUAL LEGISLATIVE CONFERENCE: Mr. Davis reported that the Third Annual Legislative Conference of the National League of Cities will be held March 12 through 15, 1967, in Washington, D. C. It was determined that Councilman Chandler would attend said conference. PROPOSED BOOKING AGENT CONTRACT - C.ONVENTION CENTER ARENAs MADISON SQUARE GARDEN CORPORATION/MAJOR ATTRACTIONS~ INC.: The Council at their meeting held January 6, 31, 1967, tabled to this date motion by Councilman Krein that the City Council not consider an exclusive booking agent for the Convention Center Arena. The Council stated they had received a supplement letter dated February 6, 1967 to letter of intent from Major Attractions, Inc., offering to enter into an agreement with the city for the production and presentation of entertainment events in the arena portion of the Anaheim Convention Center. Mayor Krein asked if anyone wished to address the City Council in regard to the proposals under consideration by the Council. Mr. Leo Freedman addressed the City Council advising that by mutual consent, the agreement which he had with Madison Square Garden Corporation relative to the Convention Center booking proposal had been cancelled, and briefly explained his reasons therefor. Mr. Glen Hendrix, Manager of the Charter House Hotel, addressed the City Council advising that Mr. Felt asked him to advise the City Council that the present proposal calls for 10 percent of the gross income, and 50 percent of the parking lot income to the City; Madison Square Garden Corporation to manage and advance all operating costs; and after accounting, distribution of the profits would be 2/3 to the corporation, and 1/3 to the City. Further, the City would be able to book events by appointing a member of the Board of the California Corporation of Madison Square Garden. He thereupon requested that the final determination be deferred to allow a representative of Madison Square Garden Corporation to appear in their behalf before the Council. Mr. Danny Dare, 235 West Orangewood Avenue, referred to letter of intent dated February 6, 1967, from Major Attractions, Inc., outlining their proposed contract, which would guarantee a profit to the City, and provide for an initial three-year term of lease, with three successive five-year option terms. He was of the opinion that the corporation would have considerable flexibility in booking events as far as city interest is concerned. Mr. Dare called attention to the fact that the principals of Major Attractions, Inc., are specialists in the entertainment field, and he briefly described the history and success of the Melodyland Theatre operation. 9955 City Hall~ Anaheim~ California COUNCIL MINUTES - February 7~ 1967~ 1:30 P.M. MOTION: Mayor Krein reported that after hearing the arguments pro and con concerning the booking of events for the Convention Center Arena, he per- sonally had not changed his opinion. He thereupon restated his motion, tabled from the previous meeting: That the City of Anaheim not enter into an exclusive contract with anyone to book events for the Convention facility arena, and that this function be performed by the City Staff, with additional personnel, if necessary. In response to Councilman Pebley's question, City Attorney Joseph Geisler advised that at the present time, the City has no commitment to any group for exclusive booking of events; that negotiations had been conducted in an attempt to bring a contract before the City Council for action, and the Council could adopt the motion now before them and, at a later date, determine to enter into an agreement for booking events, if so desired. Councilman Chandler stated that as an attorney he has represented Mr. Freedman for some time and for this reason he had withdrawn from all previous discussions on this issue, due to Mr. Freedman's interest in the Madison Square Garden Corporation proposal. He requested an opinion from the City Attorney as to whether a possible conflict of interest might still apply, since Mr. Freedman had withdrawn his interest in the Madison Square Garden proposal. Mr. Geisler was of the opinion that there has never been a conflict of interest because Councilman Chandler had not represented Madison Square Garden nor Mr. Freedman in connection with Madison Square Garden Corporation's proposal, and he saw no possible basis for dequalification at this time. Councilman Chandler stated he had been studying the matter and felt there were many points considered and yet to be considered. He recalled that a Steering Committee composed of many people in the City of diversified interests, spent considerable time and effort to establish principles towards the future construction of a convention facility; that one of their re- commendations resulted in the 4 percent hotel-motel room tax to assist in paying for the facility. He estimated that the tax would amount to approxi- mately $400,000. per year, while the amortization of the Convention Center would amount to approximately $800,000. per year. That any deficit in Convention Center operation would come from the room tax. He noted that during preliminary discussions, these things had been taken into con~;ideration? and it was recognized that there might be a deficit; however it was also r~alized that there would be a concomitant advance in the City's economy, and that business, particularly in the Disneyland area would improve, especially during "off-season" months. Councilman Chandler further advised that he did not speak on behalf of either of the two organizations proposing to perform booking services, but was speaking on behalf of private enterprise, as in his opinion, there was a definite demarcation of those matters that a body politic should assume, rather than leave for free ~nterprise. He noted that some very congent remarks were made that not only the acquisition of Conventions, but also the promotion of entertainment, and use of the arena will be a highly specialized field. Attention was called to the baseball stadium, and Councilman Chandler noted that the City had not gone into the baseball business, but into the baseball stadium business, and there were other factors involved, such as a national figure behind the baseball team, and radio and television news media. In his opinion, by the same token, the City should remain in the Convention Center business, and leave other matters to private enterprise; that if it was determined that the City should act as its own agent, there would be a necessary expenditure of hundreds of thousands of dollars per year for promotion in the open market, publicity, and staff salaries for what could be the largest department of the City. Reference was made to one of Mr. Tommy Walker's statements made to the City Council on January 31, 1967, that many arenas throughout the country are having difficulty scheduling events for their open dates, and in Council- man Chandler's opinion, the intelligent method of determining the issue would be not to accept the first contract offered, nor the tenth, perhaps, but to authorize preparation of a contract containing the required restrictions to give the City the control necessary to reserve the Convention Center for 9956 City Hall~ Anaheim~ California - COUNCIL MINUTES February 7~ 19677 1:30 P.M. desired activities, and at the same time assure the City of an income which will absorb the possible deficit in amortization of the facility, which deficit could amount to an estimated $250,000. to $300,000. over and above the $800,000. yearly payments on the facility and the land, if the facility is not in full use. Another point referred to by Councilman Chandler was the fact that with only 4,000 hotel and motel rooms in the City, there could be a serious accommodation problem arise if conventions were scheduled during tourist season. Reference was made to the first three years of the Las Vegas Convention Center operation, recalling that during their third year, they had approximately 80,000 people in attendance at their Convention facility, including all phases of their operation. In conclusion, Councilman Chandler stated that there were many facets of this problem that have not been considered, and expressed confidence that the City could operate a Convention Center, but felt that the promotion and producing of programs, shows, extravaganzas and other events for the arena, should be left to specialists in that field. Councilman Schutte was of the opinion that the proposal of Madison Square Garden Corporation would not provide sufficient income to the City. He noted that representatives of both groups have indicated they would be able to work with the Convention Center management to book attractions, if the City does not enter into an agreement for exclusive booking services. Thereupon, Councilman Schutte seconded the motion of Councilman Krein. Mayor Krein reported on telephone conversation with the Chairman of the Madison Square Garden Corporation Board, advising that the Chairman stated they would be interested in booking events even if the City de- termined to act as its own agent. Councilman Pebley expressed agreement with Councilman Chandler's opinion that government should not enter into a field of private enterprise; however, before voting on the issue, requested comments from the Convention Center Director. He noted that he had not had an opportunity to thoroughly review the supplemental letter of intent from Major Attractions, Inc. Councilman Chandler pointed out that he was not particularly concerned with either proposal, and many changes could be made to either, his concern was only with terms of a final negotiated contract. Convention Center Director Tom Liegler addressed the Council advising that he had met with both groups, and with members of the City staff in an attempt to evaluate the situation, and after diligent study, a memorandum report dated February 2, 1967, had been prepared listing possible and probable major events which have been, or could be booked into the arena, together with the proposed income therefrom. He thereupon submitted copies of said report to members of the Council, together with an itemized cost estimate for additional staff members and necessary expenses should the City determine to assume boohing responsibilities. Councilman Pebley stated it was difficult to make an intelligent decision based on material submitted to the City Council just this afternoon. Attention was called to the fact that booking operations must be allowed to proceed immediately, and Mr. Liegler reported that booking was temporarily halted after December 31, 1966, pending authorization from the City Council to proceed. RECESS: Councilman Krein moved for a 30 minute recess to allow the City Council time for a review and analysis of the staff report and Major Attractions Inc. proposal which was just received. Councilman Pebley seconded the motion. MOTION CARRIED. (2:55 P.M.) 9957 City Hall~ Anaheim~ California - COUNCIL MINUTES - February 7~ 1967~ 1:30 P.M. AFTER RECESS: Mayor Krein called the meeting to order, all members of the City Council being present excepting Councilman Duttono Mr. Tommy Walker, one of the principals in Major Attractions, Inc., addressed the Council advising that, as set forth in their letter of intent, they proposed to remove a burden from the City and from the taxpayers by providing a staff to accomplish arena bookings in a manner designed in'the best interests of the City. He was of the opinion that it would be a sound step to designate private enterprise to undertake this activity, and it would be up to them to prove themselves. Mr. Walker noted that they have the people ready to commence production, and create attractions, in their opinion the City throughout the year should have priority and they were prepared to relinquish any date. Councilman Pebley stated that after reviewing the report from Mr. Liegler, he felt that the projected booking of events by the City would constitute free enterprise, and in his opinion, this would be more desirable than designating one group into what would almost constitute a monopoly. Mr. Walker pointed out that the opening of the Convention Center had been advertised for some time, however, it is necessary to get people in the field to build up and create continued interest in the facility, so that people who do use the center will want to return. At this time, the motion by Councilman Krein, seconded by Councilman Schutte, was restated, and roll call vote was called for: AYES: COUNCILMEN: Pebley, Schutte and Krein NOES: COUNCILMEN: Chandler ABSENT: COUNCILMEN: Dutton MOTION CARRIED. Prior to stating their votes, the following is a summary of comments made: In Councilman Pebley's opinion after reviewing the report from Tom Liegler and Edward Stotereau, and considering the fact that the facility was constructed to accommodate conventions while having flexibility for many uses, at the present time he felt it would be in the best interest of the City to manage the booking operations; that the facility would then be available to any producer, including those who submitted proposals. Councilman Schutte was of the opinion that the people of the City had assumed the responsibility for the construction and operation of a Convention Center, and local groups such as the schools should also be able to use the facility. He stated that he was not opposed to any group, but felt the City would be financially ahead by acting as its own agent. Councilman Chandler was of the opinion that the motion and the vote were premature; that the subject had not been fully considered in all aspects; that the projected figures contained in Mr. Liegler's report had not been analyzed and may or may not be accurate; that the "possible and probable events" listed on said report are subject to negotiation, and will depend upon the price that is still to be established for use of the facilities; and based on his experience as a member of the committee concern- ing Stadium rental fees and the fact that all proposed tenants, including a present member of Major Attractions, Inc., requested the committee to lower the rates for the Stadium rental, and in consideration of all the unexplored facts, he felt compelled to cast a "No" vote. ADJOURNMENT: Councilman Pebley moved to adjourn. the motion. MOTION CARRIED. (4:00 P.M.) City Clerk Councilman Schutte seconded