By CHRIS DENINA Staff Reporter San Fernando Valley businesses and residents continued to file for bankruptcy protection in large numbers during July, according to this month’s Valley Econowatch. Chapter 7 (liquidation) bankruptcy filings rose to 1,315, up 9.0 percent from June. Chapter 11 (reorganization) bankruptcy filings marked an even sharper jump, up 15.4 percent from June. But the greatest increase was the 317 Chapter 13 (personal) bankruptcy filings for July, up 20.1 percent from June. Jack Kyser, chief economist at the Economic Development Corp, said the rise in bankruptcies is not all bad news because it demonstrates that people are confident enough in the economy to take risks, even if those risks don’t always pan out. The figures reflect that “lots of people have gone into business for themselves, which is a good risk,” Kyser said, citing that people are optimistic and confident in the economy, and more willing to take chances and invest in starting a business. But there are drawbacks, he added. “Most people, when they want to get into business, they think it’s a piece of cake, but it’s not it’s stale bread.” Small retailers tend to have an especially tough time. People should be better prepared for starting a small business, Kyser said, emphasizing that these entrepreneurs should take more time to analyze a business plan and be “ultra conservative” because “people get in and find it’s tougher than they thought.” The healthy glow of the Valley economy has apparently lulled some people into a false sense of security, causing them to sometimes get in over their heads. “They expect it to be more positive,” he said. Valley bankruptcies have been steadily rising over the past two years. And the July figures, while up from June, are up even more when compared with July of last year. July’s Chapter 7 filings for the Valley are 24.4 percent above the year-ago level. Chapter 11 filings are up 36.4 percent, and Chapter 13 filings are up by 20.5 percent. Kyser said the sharp jump in bankruptcy filings will likely begin leveling off and then declining in the months ahead as the economy continues its recovery. “I would be surprised if they continue to run high,” said Kyser. “If the number remains high, it’s just a sad footnote, but it’s not a sign of bad news for the overall economy.”

By HILDY MEDINA Staff Reporter Rick Pallack, one-time clothier to the game show stars, has come back to earth. A decade ago, Pallack was one of Hollywood’s premier designers. His Sherman Oaks store, and Pallack himself, personified everything that was Hollywood in the ’80s glitzy clothes, big hair, wealth and celebrity. But Pallack was best known for the credit line appearing at the end of “Wheel of Fortune” and countless other TV game shows: “Wardrobe by Rick Pallack.” According to Pallack, the credit was given for his wardrobe consulting services, not the clothes themselves which he said were always paid for. But these days, the credit line can only be seen on reruns and CNN’s Showbiz Today. Pallack said he has cut back on his free consulting services, saying he already has garnered enough publicity and doesn’t need the headache of costuming broadcast personalities. “There were not enough hours in the day to keep quality control,” Pallack said. “I was working seven days a week until two o’clock in the morning.” There is little question that Pallack belongs in a Who’s Who of celebrity designers. The ivory walls of his men’s wear store are covered with countless black-framed thank-you notes from some of the world’s most famous people including Sylvester Stallone, Arnold Schwarzenegger, Michael Jackson, Magic Johnson and even former presidents George Bush and Ronald Reagan. But Hollywood is a fickle industry, one that likes to change with the fashions and some say Pallack’s star has eclipsed. “That’s a name from the past,” said Beverly Hills clothier Fred Hayman, who is currently a favorite wardrobe consultant for network TV shows. “Rick Pallack is well known. I just don’t know where he is or what he’s doing.” In a world where trends begin and end almost weekly, no one stays with the same designer or retailer forever. “Just like Vanna (White) often looks for new designers, they’re going to change who they use,” said a production staff member with the game show “Jeopardy,” whose host Alex Trebek has worn Pallack’s designs. “It’s always a matter of refreshing the look.” Lisa Dee, a spokeswoman for “Wheel of Fortune,” said it’s normal to change wardrobe consultants from time to time. “There are a limited number of elements you could work with,” said Dee about using one retailer for an extended period of time. “It’s less a matter of changing from Rick to Fred (Hayman), and more a matter of refreshing the look.” At his peak, 20 percent of Pallack’s business was entertainment-related. Those customers now account for about 10 percent of his annual sales, Pallack says. “(Hollywood) gave us the worldwide exposure and it’s created the demand throughout the world,” Pallack said of his store’s relationship with Tinseltown. “It’s worked out just perfect.” Pallack is now using the name and reputation he built up over 29 years in the business to cut licensing deals with clothing manufacturers. He would not disclose the names of the companies with which he is negotiating for use of his name, but said they are “major public companies.” “I’ll be designing, advertising and mechandising, all through licensing, the full works,” Pallack said. “I’m ready now and now I want to do it.” A San Fernando Valley native, Pallack owns the entire block of property along Sherman Oaks Avenue where his shop is located, “except for one guy who held out.” In its 15 years in business, the Rick Pallack store has had about $60 million in sales, Pallack said. Perpetually tanned, blow-dried and impeccably dressed, the 39-year-old Pallack seems to have been born with the need to design and sell clothing. While other 10-year-olds were riding their bikes or playing cops and robbers, a young Pallack was busy creating and selling cufflinks. “They were buttons that kind of coordinated with what was in fashion at the time,” recalls Pallack. “I went to work for Mike Howard on Rodeo and Little Santa Monica. By the time I was 12, I was coordinating outfits.” When he got to high school, Pallack sold clothes to his friends, setting up shop in the trunk of his ’67 Dodge and a hall locker at Taft High School in Encino. After graduation, at 19, he converted an apartment into a men’s wear store. Five years later, Pallack switched to nicer digs his Sherman Oaks store, where today tuxedos can be had for $750 and a marked-down dress shirt runs $99.90. Becoming the dresser to Hollywood’s elite was not what Pallack planned at the time to do. “My dream, at most, was opening my own clothing store. I had no idea how all this would happen,” he said. It happened, explained Pallack, after costumers from nearby studios began stopping by his apartment on Coldwater Canyon Boulevard occasionally to pick out clothes for TV shows and films. “The biggest entertainment companies are 10 minutes from my store,” Pallack explained. “When I opened my own store … the costumers loved it. Then the talent started coming to me. From Stallone to Michael Jackson, you name it.” Most of Pallack’s celebrity clients still shop at his store, he said. His two youngest clients are Hugh Hefner’s sons, aged six and seven. “I designed little silk robes for them, like their father’s,” said Pallack.

Hed — Valley Patriotism With federal officials turning down the latest subway funding revisions by the Metropolitan Transportation Authority, and with even Mayor Richard Riordan’s staff finding that the MTA’s $2.8 billion budget is unrealistic and flawed, one thing seems perfectly clear: A Valley rail line, at least one funded with public money, is absolutely, completely and irrevocably dead. The proposal, while barely ticking before these latest developments, had been kept alive by a small group of influential Valley activists not on the basis of need or economic viability, but mostly on the misguided proposition that if other parts of the city have a rail line, so must the Valley. Such a narrow-minded view of our city and of the Valley’s place within it cropped up last year during the secession debate, when political and civic leaders spent more time arguing the vague notion of “Valley rights” than the specific, and quite narrow, issue of the City Council’s authority in any potential separation. In our view, secession has been and continues to be an issue in search of a constituency. Little focus has been placed on the immense undertaking any secession effort would involve, and besides, the public opinion polls generally show that Valley residents want no part of such a movement. So why do these and other matters of Valley independence keep getting batted around? Some of it probably goes back to a long-held view that Valley taxpayers do not receive their fair share of city services (a perspective that, if ever correct, has certainly become outdated with the changing demographics and economics of the Valley floor). Some of it, too, involves simple geography. The Valley’s distance from City Hall invites tired claims that there’s a secret cadre of business and government interests that’s only interested in downtown development. To his credit, Mayor Riordan has done an admirable job of affirming the Valley’s importance both politically and economically but not enough, it seems, to assuage the one-sided views of the above-mentioned activists, who consider anything south of Mulholland Drive as enemy turf. To some extent, of course, these Valley patriots have a point. Both culturally and politically, the Valley has been mercilessly derided (to the point where the 818 area code has taken on a pejorative connotation). The truth, of course, is that the Valley has become a centerpiece of L.A. economic activity as well as a significant source of cultural and academic pursuits. Take a look at the area’s major growth industries entertainment and technology and see how many 818 area codes you run into. Such standing, however, doesn’t necessitate a push for independence nor, for that matter, does a hopeless rail line. This is a very big city, and the Valley has needs and an identity that are quite apart from those in downtown or Mid-Wilshire or East L.A. At the same time, this is a city that desperately needs to stop balkanizing itself for the sake of petty politics. It’s very obvious that portions of the Valley have horrendous traffic problems, but it would make more sense to explore private-sector alternatives, like a surface rail system along the Ventura (101) Freeway that Supervisor Mike Antonovich has been suggesting. We’re not sure that’s the ultimate answer, but it’s a far more instructive course than ranting about “Valley rights.”

By BOB HOWARD Contributing Reporter Audio Digest can make a strong case that it is literally just what the doctor ordered. The Glendale company has been setting growth records by aggressively marketing its audiotapes that condense presentations from the hundreds of medical conventions and conferences held throughout the United States each year. Doctors who don’t have time to attend medical conventions order the Audio Digest tapes to hear the latest lectures about advances in their respective fields. But there is more to the business than recording lectures and selling tapes to doctors, according to Allen Stamy, president and chief operating officer and part of a management team that took over two years ago. To get the tapes, doctors buy subscriptions for about $200 a year, in return for which they receive twice-a-month mailings. Besides doctors, subscribers include universities, hospitals and medical libraries. Each mailing includes a 10-page summary of what’s on the tape, along with a self-administered test to be taken before and after listening to the tape. Subscribers can then mail in the completed test and receive credit for continuing medical education. Audio Digest, which is a non-profit subsidiary of the California Medical Association, sees itself as serving an important role in the continuing medical education that is mandatory for doctors throughout the United States. “The general public probably doesn’t realize how important continuing education is for doctors. It is required by law,” said Bob Calverley, a spokesman for the Los Angeles County Medical Association. Calverly said many of the association’s doctors subscribe to the Audio Digest service to meet state licensing requirements and because it’s virtually impossible to attend all the important seminars to keep up on the latest medical advances. Sponsors of medical meetings often offer printed versions of their proceedings, but the tapes enable doctors to listen to lectures when they don’t have time to set aside for reading, Calverly pointed out. Lon Osmond, vice president and executive editor at Audio Digest, said the company’s tapes represent a more efficient way to listen to taped lectures because Audio Digest condenses the talks. Audio Digest records about 6,000 lectures a year at some 300 conferences, but only uses about 700 of what it considers the best lectures, and then culling those down to a few dozen tapes per specialty, Osmond said. At the Audio Digest studios, nine medical editors trim the speeches to remove the pauses, throat-clearing and other superfluous information so that only “the best of the best” remains, Osmond said. “We also edit the tapes to make sure the information in the presentations is in the most useful sequence,” Osmond added. “If a speaker remembers something at the end of a lecture that he or she meant to include at the beginning, we can edit the tape so that it’s where the speaker intended it to be.” Osmond said many doctors subscribe to the tape service even if they have already met educational requirements because they need to keep up with changing practices to remain successful and because of “tremendous peer pressure” to be up on the latest developments. Audio Digest has been around since 1953, when it was founded by the late state Sen. Jerry Pettis. By 1995, it had hit the wall in terms of growth, according to Stamy, who said the company had topped out at about 39,000 subscribers and that number was declining. Since then, the number of subscribers has grown to 50,000 as Audio Digest has targeted new groups of medical professionals and expanded its marketing to existing groups. The company would not disclose revenue figures, but based on its $200 yearly subscription fee, its revenue would have grown from $7.8 million in 1995 to $10 million in 1997. Stamy, a one-time IBM executive who became Audio Digest president in 1996, credits much of the growth to direct mail marketing programs developed by George Groveman, a 25-year veteran of the pharmaceutical industry who became vice president of marketing and development in January 1995. Besides Stamy and Groveman, the management team includes Osmond, who has been with the company since 1985 and was promoted to his current post in 1995; and Dr. Richard Corlin, a Santa Monica gastroenterologist who holds the titles of chairman and chief executive. (Corlin spends about one day a week at the company, while Stamy oversees the company’s day-to-day operations.) “We’ve always had a good product,” Stamy said, “but we really didn’t have the sophisticated marketing effort we have today. Until George’s arrival, there wasn’t really a scientific marketing approach.” Groveman said the company focuses on a target group of “at most, 600,000 individuals.” That includes 400,000 doctors in 13 medical specialties that represent about 80 percent of the doctors in the United States. The other 20 percent of U.S. doctors are involved in more-obscure specialties that do not lend themselves to mass-market audiotaped lectures. It also includes two new groups the new management team has targeted nurse practitioners and physician assistants as well as 4,600 hospitals, universities and medical libraries. Since the target population of doctors doesn’t grow much from year to year, the company’s best chance for growth was to market aggressively to get new subscribers from that pool and to target the new groups, Groveman said. “It’s still very valuable and worthwhile to attend meetings in person, but people can’t always take the time to go,” Osmond said. “Our tapes actually enable the sponsors of the meetings to reach a much broader audience than they would without the tapes.” While Audio Digest tapes are more economical, affordable and convenient than attending a meeting in person, Osmond said, “we wouldn’t have content for our tapes without the live presentations, so we always promote and give credit to the conferences that provide the lectures.” John Gray, associate director of the Office of Continuing Medical Education at the University of Michigan, said officials there view Audio Digest as a supplement to the 70 or so medical symposiums that the university conducts each year. “We’ve always considered Audio Digest to be an extension of our symposia and similar to the major publishers of medical textbooks and reference books,” said Gray. Even doctors who attend the symposiums in person often buy the tapes to keep as references, he said. Gray added that continuing education is a full-time endeavor at places like the university, which has a permanent staff of 20 in its continuing education office. Stamy said Audio Digest recently bought a minority interest in Palm Desert-based Landes Slezak Group, which records medical meetings for conference sponsors and then makes tapes available immediately afterward. Audio Digest is expanding in other ways too, Stamy said. In early August the company signed an agreement with Montvale, N.J.-based Medical Economics Co., publisher of the Physicians Desk Reference and Medical Economics Magazine, to develop and produce an audio series on the economics of medical practice and of health care. Audio Digest also has had a partnership for some time with the Massachusetts Medical Society, which publishes the New England Journal of Medicine, to produce an audio version of another of the society’s publications, a medical journal digest called Journal Watch. Audio Digest operates as a non-profit organization that disburses its profits as educational grants and scholarships through the Audio Digest Foundation. Stamy said, however, that it faces the same challenges as a for-profit business. “There is lots of competition, in general, in continuing medical education, so we have to operate in a business-like manner if we want to continue to succeed and grow,” he said. Year founded: 1953 Headquarters: Glendale Core business: Continuing education audiotapes and related materials for physicians and other health care professionals. Employees in 1995: 65 Employees in 1997: 75 Revenue in 1995: $7.8 million (estimate) Revenue in 1997: $10 million (estimate) Top executive: Allen J. Stamy, president and chief operating officer Goal: To continue reaching new and larger audiences of medical professionals in need of continuing education. Driving force: The need for medical professionals to remain abreast of the latest advances in health care and to obtain continuing medical education credits to maintain their licenses.

Universal Commendations Even though its expansion plans have been reduced, Universal Studios has made a major commitment to do more than originally proposed to mitigate traffic in and around its studio and theme park (“Traffic Remains Issue in Universal Plan,” Aug. 18). Instead of constantly criticizing Universal’s development plan, those who oppose Universal’s plans should commend the corporation for its willingness to take responsibility for the consequences of its operations. In fact, Universal should be held up as a role model for developers of large-scale projects that bring traffic into local communities. When Universal first unveiled its ambitious expansion plan to the public two years ago, the company had in place numerous traffic measures, including an improved exit ramp from the Ventura Freeway, widening and reconfiguring local streets used to enter and exit Universal City, and many other traffic enhancements. As a long-time Hollywood Knolls resident, I was very pleased to learn about these traffic mitigations and improvements. I am even more pleased today and commend Universal for standing by its commitment, despite the fact that the reduced project will attract far less traffic than originally projected. It’s not often a big company will take its licks and still deliver as promised. Universal has accepted the substantial reductions in its project but has not abandoned its promises to the community. DENISE ANTHONY Hollywood Knolls

By LARRY KANTER Staff Reporter Philip A. “Flip” Smith was fed up. After more than two decades operating Flip’s Tire Center in Van Nuys, Smith had seen his shop’s Sepulveda Boulevard neighborhood marred by prostitution, trash and grafitti. Taking a cue from the neighborhood watch groups that had helped reduce crime in residential neighborhoods, Smith launched a “business watch” group, which met with police, removed garbage and scrubbed the walls clean of graffiti. That was four years ago. Smith’s group now has more than 75 businesses on its membership list and he has exported the idea to other Valley communities. In recognition of those efforts, Smith was named one of five finalists for the 1997 Fernando Award, the Valley’s highest honor for volunteers, at a banquet late last month. “When people get together, they really can find solutions to these problems,” said Smith, 50, who also is involved in the Rotary Club, the Mid-Valley Chamber of Commerce and the Economic Alliance of the San Fernando Valley. “I like the Valley and I want the Valley to succeed,” Smith said. The other four finalists are Kenneth C. Banks Jr., a North Hollywood insurance broker; Horace H. Heidt, president of an apartment complex agency and an entertainment industry consultant; Terry York, owner of Terry York Automotive Group; and Walter W. Mosher Jr., founder and president of Precision Dynamics Corp. in Pacoima. “It’s extremely important for the company to be part of the community,” said Mosher, 63, a three-time Fernando Award finalist who is being singled out for his work with youth groups and family counseling centers. Mosher encourages the 350 employees of his medical devices firm to get involved in volunteering as well. This year’s Fernando Award winner will be announced Nov. 7 at a black-tie dinner at the Warner Center Marriott hotel.

Construction Sig Raulinaitis has been named director of construction at Encino-based Mann Theatres. Raulinaitis will oversee and develop projects. He previously was project manager at Extended Stay America Hotels. Entertainment Jim Banister has been promoted to vice president and general manager at Warner Bros. Online, which produces entertainment programming for the Internet and commercial online services. Banister will be responsible for digital production and distribution of multimedia entertainment programming. He previously was vice president of production and technology at the division, and will be based in Burbank. Amelia Bryant has been promoted to senior director of marketing, urban music at Universal Music & Video Distribution. Bryant will be based in Universal City and will coordinate marketing strategies between the labels and Universal’s artist development representatives. She previously served as product development manager for the company. Also, Chris Clancy has been promoted to director of college marketing & retail merchandising. In his new position, Clancy will be responsible for developing and implementing marketing programs targeting the college market. He previously served as director of merchandising for the company. They will both be based in Universal City. Mark Halacy has been named vice president of human resources development at Universal Studios Inc. in Universal City. Halacy will coordinate and implement human resources initiatives, lead workforce planning and organize development efforts company-wide. He joins the company from Blockbuster Entertainment Group, where he served as senior vice president, worldwide human resources. Burbank-based Disney Interactive has named Jan Smith senior vice president and Steve Finney vice president and chief financial officer. Smith will be responsible for the division’s domestic and international businesses some of which include product development and marketing. She previously served as vice president and group publisher of Disney Publishing for Children. Finney will hold worldwide responsibilities for finance, operations and strategic planning, accounting and administration. He previously was vice president at Walt Disney Records. Universal City-based Trident Entertainment Inc. has promoted Antonio B. Rego to vice president of production and Jeff Richardson to director of production. Rego will oversee film, video and television production efforts. He previously was director of operations at the company. Richardson will direct and oversee productions. He previously headed the company’s graphics department. Health Care Dr. Barton R. Wald has joined Burbank-based UniMed Management Co. as chief medical officer and senior vice president of medical affairs. In this newly created position, Wald will lead the development and implementation of medical and quality improvement programs. Prior to joining UniMed, a physician practice management company in Burbank, Wald was regional medical director for Southern California at Health Net. David C. Colby has been named executive vice president and chief financial officer at WellPoint Health Networks Inc. in Woodland Hills. Some of Colby’s responsibilities will include corporate development, strategic planning and investor relations. He previously was executive vice president, CFO and treasurer at American Medical Response Inc. Jan Zlotowicz has been promoted to vice president of human resources at Woodland Hills-based Health Net. In her new position, Zlotowicz will be responsible for strategies and daily operations of the human resources department. She previously served as director of human resources. Also, Ranell Davis has joined the individual sales unit of Health Net/Foundation Health Systems Inc. as statewide director of sales. Davis will be responsible for statewide sales, as well as managing and overseeing external sales representatives, brokers and general agents. She previously served as account executive at Blue Shield of California. High Tech Frederic T. Boyer has been named chief financial officer and vice president of finance and administration at Software Dynamics Inc. in Chatsworth. In his new position, Boyer will be responsible for overseeing the financial operations of the company. He previously served as vice president, CFO and plant manager at ADC Enterprise Networking Group, a developer of networking products. Insurance Robert A. Frary has been promoted to vice president of marketing at the Worksite Products Division of United Insurance Co. of America. Some of his new responsibilities will include overseeing product and marketing alliance development, and marketing communications. He previously was assistant vice president of marketing. Real Estate Donald W. Hudson, Jr. has been named senior vice president at Warner Center Properties in Woodland Hills. Hudson will take on the role of director of leasing, heading efforts in that field. He previously was a broker at CB Commercial Real Estate Group Inc. Retail Paul Alofs has been named executive vice president and general manager of The Disney Store, North America, and will be based in Glendale. His responsibilities will include overseeing operations, marketing and merchandise buying. He previously was president and general manager of the Canadian division of BMG Entertainment.

Three and a half years after the Northridge earthquake, thousands of apartments, houses and other structures around the San Fernando Valley remain damaged from the temblor. Meanwhile, many San Fernando Valley businesses are doing much better than they were immediately after the quake. Taking those factors into consideration, the Business Journal Forum asks: Has the San Fernando Valley finally recovered from the quake? Scott Smith Executive Vice President and Director McKibben Communications Inc. Chatsworth Yes. Although there may be some infrastructure and housing repairs left undone, the Valley has come back and is stronger. Businesses such as ours were forced to make repairs and unscheduled upgrades. Richard Pocrass Chief Executive Officer Chocolates a la Carte Inc. Sylmar Unquestionably yes, especially in our case. In fact we’ve won awards for how well we’ve recovered. For instance, we got a new enrobing machine, which showers the confections in chocolate. The old one was crushed by a wall. I see a lot of other companies around which have the same story. Nancy Schmidt Vice President and Manager American Pacific State Bank Sherman Oaks No, not completely. We are certainly on the road to recovery, but there is a ways to go. There are still a lot of residential communities with townhomes and condominiums that need rebuilding, and that means that some businesses don’t have all their customers back. Joann Roth President Someone’s in the Kitchen Tarzana I would say yes. I don’t see the dead zones around town, and this sensibility of “no life and no hope” is very much diminished. I’m a luxury business and people don’t have catered parties unless they have something to celebrate. People didn’t celebrate for about three years and they are now. Carole Ozanian Big Valley Music If the question is whether every apartment has been repaired and every building rebuilt, the answer is absolutely not. The recovery of the earthquake and the recession has been very erratic. Business was very good for a year after the quake, and it’s been very up and down ever since, and I can’t make sense out of it. There certainly are signs of recovery.

By DANIEL TAUB Staff Reporter Los Angeles City Councilman Richard Alarcon has attracted headlines in recent months after pushing for redevelopment of the former General Motors Corp. site in Panorama City, as well as in his effort to create a development vision for the Hansen Dam area of the Northeast San Fernando Valley. But perhaps Alarcon’s biggest recent move was his announcement that he plans to run for Herschel Rosenthal’s state Senate seat after Rosenthal is termed out next year. In the Democratic primary, Alarcon likely will be pitted against former Assemblyman Richard Katz, a friend of Alarcon’s who has also announced his intention to run. Alarcon, 43, was first elected to the Los Angeles City Council in 1993 and was reelected in April. He represents the council’s 7th district, which includes all of Pacoima and parts of Mission Hills, Sylmar, Arleta, North Hills, Lake View Terrace, Sun Valley, Panorama City and North Hollywood. Q: You’re running for state Senate in a primarily Latino district and you’re going to be running against former Assemblyman Richard Katz. How do you see that playing out? A: I win. (laughs) Q: Do you win because you’re Latino? A: Well, the district is in a majority Latino community. And the population is a majority Latino community. But in terms of voters, no. I’ve always won with a broad coalition of people of all ethnicities as well as communities of interest. Right now, I’m very excited to have very strong endorsements from Democrats and Republicans as well as business and labor. Q: You’re very community-oriented and always mention how you grew up in your district. What would happen if you went to Sacramento and were no longer handling local issues on a day-to-day basis? How would you keep that sense of community? A: Actually, that’s one of the reasons I’m running. I believe that many state legislators have forgotten how to balance their responsibility to the state Legislature and focus on the district at the same time. I believe it can be done and I want to bring that sense back to the district. I think that just as people are concerned about potholes and streetlights, they’re equally concerned about Caltrans and the freeways and the school system. Those things aren’t local, and we have to make statewide decisions on the basis of what we see in our district. I think politicians that lose perspective of the local needs will not be able to make good statewide decisions. So I expect to be very hands-on in my district as a senator, or any other position. I would feel, frankly, off balance if I didn’t focus on that district. Q: Do you have any longer-term political goals? A: The (state) Senate. Q: Beyond that? A: That’s my long-term goal to be a state senator. I remember when Mayor (Tom) Bradley appointed me Valley-area coordinator, and people used to say, “Where are you going from here? What are you going to do? People are talking about this.” You know, my parents taught me to eat one bite at a time. If you keep looking at the future, then you can’t enjoy the meal you’re having now. Nor will you be able to do a good job with what you have in front of you. So, no, my focus right now is serving as a City Council member and running for the state Senate. And I’m not looking beyond that. In terms of goal-setting, the first decision that the voters have to make is whether they want me to be a state senator. And that’s the only decision I want them to focus on. Q: What are your feelings on Valley secession? A: I’ve always said that in order to make a firm decision on secession, we need more information. We need to know the impact. We need to do good tax and revenue analysis. We need to look at our debt and determine who’s going to pay what. And before anyone votes on the issue of Valley secession, or any other secession, they should know how much debt will ensue whether their tax base is going to cover certain expenses. And there’s a myriad of other issues. Nobody has voted for secession. The only thing that has been asked is, “Would you give the Valley the opportunity to decide?” And I think the Valley should have that opportunity. It’s not going to happen this year, but I do believe they should have the opportunity to decide. By not giving them that choice, I really believe that people entrench themselves and take positions for secession without the benefit of full information. And that’s the wrong reason to make the decision. They should have more information, and then they can make an informed decision. Q: What is the current status of the GM plant renovation? A: (Recently) we had the $4 million grant from the Economic Development Administration. It was approved, and that triggered moving into construction. We anticipate that by the end of March, most of the commercial retail will be finished and opened. Q: What about the industrial side? A: On the industrial side, they’re negotiating with a number of prospective tenants and I don’t have a lot to add. But they’re looking at the same relative timeline, recognizing that the industrial is going to take longer. Q: Where are things on Hansen Dam? A: Well, we went out to bid on a prospective vision statement for the San Fernando Valley. We received five bids, some very complicated. And talk about vision. They really were seeking pie in the sky. One of the bids, I know, came in at $3.4 million, and we have $180,000 (put aside to pay for the vision statement, a redevelopment plan for the Hansen Dam area). So I don’t know how they expect to get that. But I can tell you that it’s moving forward and we’re hoping to select a contractor to create that vision statement for the core of the northeast San Fernando Valley. The thing that kind of triggered the whole (redevelopment) idea was a Department of Water and Power site where we have the Valley generating station. The site is potentially going to go through a transition with the deregulation of utilities in the state, and we may not need all the land there, so we want to explore that as one of the parcels that might be redeveloped, as well as the entire area. (The five bidders) made their presentations to the advisory committee. As far as I know there has not been a selection, but there have been some very good proposals. They included all the ideas I had mentioned before. Q: How did you land your seat on the Air Quality Management District? A: I had asked Mayor (Richard) Riordan when I was first elected if he would consider me for the AQMD, and he said that as long as (former City Councilman) Marvin (Braude) was there, that was fine with him. So I asked him, “If that should change, would you give me first consideration?” And he obviously did. Q: You immediately threw yourself in the center of controversy by casting the deciding vote to remove John Mikels from the chairmanship of the board. A: They moved to remove John Mikels from the chairmanship and put Bill Burke in, and I supported that, and it was a 7-5 to vote. I was the swing vote. I was concerned that a 6-6 vote would focus too much attention on governance and not enough attention on air quality, which should be the focus of the Air Quality Management District. Having not known Mr. Mikels I decided to vote for Bill Burke, who assured me I would have a strong role. Soon after, he appointed me chair of the legislative committee. I think my first significant action is to look at whether we should establish a new office in Washington, D.C. Given these new (Environmental Protection Agency) standards, I think we’re going to need it. Q: What do you do for fun? A: Well, first of all, I spend a lot of time with my wife. And my youngest kid went to college (last month). So I’m very sad about her leaving, but I’m very happy about her purpose. My wife and I are best friends so we spend a lot of time together. We try to get to the movies as often as we can. My wife and I are also involved in a lot of community affairs. If I could have a choice of how to spend my day, I would play a round of golf, I would bowl several games, and I would play baseball. Richard Alarcon Title: Los Angeles City Councilman Born: 1953, Los Angeles Education: California State University, Northridge, bachelor’s degree in political science, 1981 Most admired people: Parents, former Mayor Tom Bradley Hobbies: Golf, bowling, spending time with wife, baseball Turning point in career: Being hired as a senior administrative assistant in the mayor’s office in 1981 Personal: Wife, Corina, and four children

EDS/hildy/18″/dt1st/mark2nd By HILDY MEDINA Staff Reporter Three years ago, Varitel Video in Studio City was a mid-sized film-to-video transfer operation attracting scant notice in the Valley’s huge post-production community. Today, after being acquired by Ross Perot’s former company, it’s a juggernaut that has made huge investments in technology to become the world’s biggest digital film restoration facility. Electronic Data Systems Corp., founded by Perot and later aquired by General Motors Corp., made its Hollywood debut by purchasing Varitel Video in January 1995 and changing its named to EDS Digital Studios. This spring, EDS spent $12 million to buy eight high-resolution drawing pads and monitors, known as Quantel Dominos, which are used for film restoration, compositing and the creation of digital special effects. It was one of the largest single purchases of this equipment there are only 15 of these state-of-the-art computer systems on the West Coast, eight of them at EDS Digital. Doing things big is relatively easy for EDS Digital because its parent company, Electronic Data Systems, is huge. With 1996 revenues of $14.4 billion, EDS has a way of shaping and remolding any business into whatever it wants it to be. “EDS’ mission in life is to take a look at any business, like Hollywood, and say, ‘We could do this. We could make it faster, better and cheaper,'” said Martin Greenwald, president and chief executive at Image Entertainment Inc., the nation’s largest laserdisc distributor and an EDS Digital customer. “EDS supplies Hollywood with tools to make stuff better they’re the perfect marriage to Hollywood.” The EDS resume is impressive enough. Over 70 percent of U.S. automated teller machines are made by EDS, making it the nation’s leading designer and supplier. It also is one of the leading contractors for designing and providing complex computer network systems for government offices. As Hollywood’s demand grew for computer and digital effects, EDS executives began to take notice, according to Greg Granello, president and chief executive of EDS Digital Studios. “We got real excited as the industry became more and more digital,” said Granello. “We know how to do that it plays to our strength.” The first thing EDS executives did, said Granello, was look at Varitel Video’s post-production operation and explore ways to improve its services. “The business wasn’t what we wanted it to be,” said Granello. The next step has been to “grow the traditional business, editorial, graphics … then launch new businesses.” Though Granello would not disclose how much money has been invested into the studio facility by its parent, EDS Digital has added about 50 new employees, growing from Varitel’s staff of 115 to about 160. And then, of course, was the purchase of the Dominos. Granello wouldn’t say whether all this new staffing and equipment has garnered new clients. But he did note that EDS Digital is working with one major studio (Granello called it “The Magic Studio,” possibly a veiled reference to Walt Disney Co.). “Our plan is to launch more lines of business,” said Granello. “What we’re looking for is someone to give us multiple projects.” EDS Digital recently began offering several of its own inventions, one of which is called “Post Paint,” a patented application that reduces an animation problem known as “paint crawling.” Paint crawling happens when restoring animated films that are more than 20 years old. Since each cell is individually painted, the paint on individual frames tends to smear. “Post Paint” makes the film look as if it were newly painted, according to Granello. Another EDS-patented process is “Post Camera,” which simulates a camera move after film has been shot. “If a director looks at a shot and says, ‘This is not what I wanted. I should have zoomed, panned off’… we put it in for them,” Granello said. Another technique now being developed by EDS Digital is called “Post Rez,” which improves film resolution and produces a sharpness to the picture. “This is our stuff,” said Granello, who was brought over from the company’s Dallas headquarters in May 1996. “It’s going to be really hard for our competitors. EDS has been doing (computer) technology for 30 years. It’s not easy to compete with us.” Five more inventions are in the works and are expected to be running in early 1998. An additional 12 employees will be hired to oversee the new services, according to Granello. “Anything we want to do, we’ll do.” said Granello. “We’re looking for big-time opportunities.”