Disney Showers Gifts on Anaheim Officials : Public policy: Contributions, freebies flow to decision-makers who must approve expansion plans.

Many of the city officials who will make key decisions on the Walt Disney Co.’s proposed $3-billion resort development in Anaheim have accepted thousands of dollars in Disney gifts and campaign contributions, city records show.

Over the past three decades, Disney has provided dozens of City Council members and department heads with free tickets, meals and--until this year--an annual fishing and golf trip to the Hotel Del Coronado in San Diego.

Even as the city has moved to curb the flow of Disney’s gifts with actions such as the cancellation of this year’s San Diego trip, Disney campaign contributions began to increase. And last fall, campaign money began arriving not just from Disneyland but also from the company’s Burbank headquarters. Even Disney Chairman Michael Eisner wrote checks.

All this comes at a time when Disneyland is preparing what may become its biggest-ever wish list for the city: the planned $3-billion expansion that may call for more than $500 million in city funds.

On Wednesday, city officials talked warmly of a close relationship over the years with Disneyland executives, but insisted that no gifts, no contributions, no friendships would keep the city from a thorough and impartial review of Disney’s plans.

As for Disneyland, President Jack Lindquist said the company’s long tradition of building relationships with the city has amounted to nothing more than “good business sense.”

“In 36 years, we’ve never done anything we’ve been ashamed of,” the theme park chief said. “We happen to believe that any city council is made up of people with more integrity. Their votes can’t be bought for a one-night trip.”

But others view Disney’s actions more harshly.

“The tactic Disney uses is co-opting people,” said former Anaheim Mayor William Thom, now an real estate agent in the city who acknowledged accepting the company’s hospitality on trips to Santa Catalina Island and San Diego. “The wining and dining, the trips to San Diego. . . . It’s an obvious attempt to co-opt public officials. If you accept it and go along with it, people have every right to think you’ve been bought off.”

Anaheim finds itself in competition with Long Beach as Disney ponders where in Southern California to locate its second major attraction. The Long Beach plan calls for a 414-acre ocean theme park called Port Disney. The Anaheim plan would include a world’s fair-style theme park called Westcot Center, surrounded by lakes, parking garages and three new hotels.

City officials have been mindful of Disney’s longstanding ties with city officials as they approach negotiations. Anaheim City Manager James Ruth said Wednesday that he was concerned enough about the city’s relations with Disney that he deliberately sought individuals who had not dealt extensively with the entertainment giant to represent the city in negotiating sessions. His choices as lead negotiators were Deputy City Manager Tom Wood and Los Angeles attorney Thomas F. Winfield III.

“Candidly, I would not have selected someone with a long history with Disney,” Ruth said. “It makes us feel that much better.”

Ruth said the San Diego trips are now ended because of fears that it might be viewed as a conflict of interest. “Nobody felt very healthy about it. In fact, we wanted to call it off before the trip last year especially with this project, but things (trip plans) got too far along.” In 1990, Ruth said, he told city officials to reimburse Disney for the cost of the trip.

Lindquist agreed. The trips “outlived their purpose,” and became “subject to interpretation.”

Ruth, repeating a phrase echoed by council members, say the few hundred dollars’ worth of perks they each have received from Disney in past years does not influence their decisions.

“I don’t see it as an issue,” Ruth said. “If I can be bought for $100, I don’t need to be here. We’ve built a reputation based on integrity here. I’m comfortable with that. I’ve never felt the slightest amount of pressure.

“We needed to have a good relationship with them,” Ruth added. “We need to be working very closely with them. I think our department heads are encouraged to have a good relationship. In all the years it has been done at a very high level, and I have a lot of confidence in our position now.”

Councilman William D. Ehrle emphasized the historical importance of Disney to Anaheim.

“Disney helped make Anaheim what it is today,” he said. “There is a marriage between the city and the entertainment business here, whether it be with the California Angels, Los Angeles Rams or Disneyland.

“But this is business. You sit down at the negotiating table because you are elected by the people who expect you to represent their interests. They (Disney officials) know we are not going to roll over. I’m sure there are a number of citizens out there who wonder whether their best interests are going to be served. I know they will be served.”

Councilman Ehrle likened the city’s relationship with Disney to the wedding ceremony that joined him with his wife, Julie. The two met at Disneyland in 1987 and were married outside the park’s main gate in 1988. Afterward, Disneyland provided free admission for members of the wedding party.

City officials pointed out that all gifts were reported annually as required by state law. Disney’s gifts were mere gestures of goodwill, no strings attached, they said, adding that the ventures to San Diego, which typically cost Disney $200 or more per guest, were social occasions at which no city business was discussed.

City Atty. Jack L. White said that Disney gifts are perfectly legal as long as they are properly reported. State law, he said, requires that council members or department heads cannot vote or take action on a matter related to Disneyland for 12 months if they accept more than $250 in gifts in a year.

White said that city administrators are cutting back the amount of gifts they receive or paying their own way to Disney-sponsored events now that Disney is actively negotiating for its new park. For his part, White reported that his 1989 Disney gifts totaled $249.50, 50 cents under the cap.

Still, over the years, the value of the gifts have piled up. They have become so extensive that the city manager has in the past issued memos to the City Council and department heads listing the value of every item that Disney provides. A 1988 memo states, for instance, that an annual pass, good anytime during the year for park admission, was worth $140 and poinsettia plants that show up on desks at Christmastime were each worth $33.

Among those who have listed perks in their annual “economic interest statements” were a wide range of city officials:

* Public Utilities Assistant General Manager Edward Alario received 75 tickets worth $1,500 for himself and others in nine months during 1987. Seventeen of those tickets were charged between Sept. 3-22 that year. Alario could not be reached for comment.

* City Finance Director George P. Ferrone landed a total of 34 free passes in 1989, worth $799. In a brief interview, he explained that he has six children and 10 grandchildren and that he wanted to take them to the Magic Kingdom. He said that he no longer accepts gratuities because of the Disney project, on which he expects to work analyzing the financial aspects.

Asked about whether he thinks the public might view the gifts as a conflict, he replied: “I don’t know what the public might think. It depends on how you write it. It’s not a conflict of interest.”

* City Planning Commissioner Glenn Hellyer, who may have to consider Disney plans for approval in future meetings, holds 100 shares of Walt Disney Co. stock worth about $11,000. He said is now seeking legal advice to determine whether he will have to divest the interest to remain on the panel.

* Human Relations Director Garry O. McRae accepted a $750 “Silver Pass” to Disneyland, good anytime during a year for admission for four, 28 tickets worth $700 and the San Diego trip, which he valued at $300, in 1989. The total comes to $1,750 in Disney freebies.

* Former City Councilwoman Miriam Kaywood’s tab for the overnight stay at the Hotel del Coronado lists the price of her room in 1987 as being $225 alone, excluding food, drinks, travel and activities, paid for by Disney.

The San Diego trips got their start in the late 1950s as a way of bringing city officials and Disney officials together on a social basis, Disneyland’s Lindquist said. In San Diego, the city and Disney executives are readily identifiable by the Windbreakers they wear. The jackets are emblazoned with a patch that reads, “Anaheim Ichthyological, Sour Mash and 5-Card Draw Society.” Organizers said the name was a humorous reference to the fishing, drinking and card playing that often occurred.

Although Councilman Tom Daly said he reimbursed the company for San Diego trips he took in 1989 and 1990, he said he is confident that the tradition that others enjoyed free of charge will not affect upcoming Disney discussions.

“I believe we have a very capable, very tough, very experienced negotiating team,” said Daly, adding that he was not aware of Ruth’s concerns that those selected be free of Disney ties. “I just decided it was best in my judgment that I reimburse my expenses.”

Councilman Bob D. Simpson, who is also a former city manager, said he does not believe that Disneyland gift privileges have not been abused. He adds, however, that he never checked to make sure. “That was left up to the individual department heads,” he said. City department heads also apparently had discretion to decide whether to accept the San Diego trips as either work or vacation.

Simpson said that as a councilman, his vote would never be influenced by the trips. But like others, he said he will miss them and that they were typical of the Disney tradition.

“To me, that’s in keeping with everything Disney does,” he said. “Everything they do is first class.”

But even as the city officials and Disney move to a somewhat more distant relationship, it has not decreased the stream of campaign dollars.

In 1987 and 1988, contributions from Disney or its executives to City Council members totaled $14,450. In 1989 and 1990, the company’s corporate headquarters and top executives from Burbank contributed a total of $25,250 to five council incumbents. All but $3,000 was contributed in 1990 to three council members who were caught up in heated reelection campaigns.

Mayor Fred Hunter got $9,250 in Disney-related campaign contributions in 1990, compared to $1,000 the year before.

Council members Irv Pickler and Kaywood each received $500 contributions from Disney Chairman Eisner. Hunter and Pickler could not reached for their comments. Kaywood said Disney’s involvement in campaigns stepped up markedly in 1990, but that she would not be affected by any contribution. “If you’re looking for anything sinister in all this, you’re not going to find it,” she said.

Although Disneyland and the Disneyland Hotel have been regular political contributors through the years, Disneyland President Lindquist said, money from the Walt Disney Co. headquarters and Eisner is new. He said the money came as a result of the local Disneyland executives keeping their bosses in Burbank informed of local politics in Anaheim.

“Maybe we did too good a job,” Lindquist said.

Disney’s Dollars

Value of Disney’s gifts, including free travel, and campaign contributions to Anaheim officials in 1989 and 1990, as reported by council members.

Council member 1989 1990 Fred Hunter (mayor) Gifts: $552 $100 Campaign contributions: $1,000 $9,250 Tom Daly Gifts: $188 $102 Campaign contributions: $1,000 $0 William D. Ehrle Gifts: $300 $150 Campaign contributions: $0 $1,000 Miriam Kaywood * Gifts: $454 n/a Campaign contributions: $0 $7,000 Irv Pickler Gifts: $754 $240 Campaign contributions: $1,000 $5,000 Bob D. Simpson * (city manager) Gifts: $264 n/a Campaign contributions: $0 $0

* Simpson was elected to council in November, 1990, replacing Kaywood.

Note: Campaign contributions exclude those given by Disneyland Hotel

Source: Statement of Economic Interest forms; campaign contribution reports