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Joyce Clark Unfiltered

For "the rest of the story"

Tomorrow, July 13, 2015 the Glendale city council will meet in executive session at 11 AM. What is the topic? Your guess is as good as mine. No one is talking and how could they? Senior staff has decided (perhaps wisely) that council will not know the subject matter of the e session until the actual meeting. The only other period of time staff went to such lengths was when Phil Lieberman was on council. It was suspected but never proven that he leaked e session material on a regular basis to Canadian folk during previous Coyotes’ buyer negotiations. This time the alleged leaker(s) may be Councilmembers Sherwood and/or Chavira spilling all to the owners of the Coyotes.

It may be that senior Glendale staff will present a Coyotes offer to the city council. There are events that hint that this may be the topic. Several councilmembers were scheduled last week for depositions with regard to the Coyotes law suit. Abruptly those deposition sessions were cancelled. Was it because the city’s attorneys were in talks with the Coyotes’ attorneys? The Coyotes payment of $1M bond and the city quarterly arena management payment of $3.75M are linked together and are to be paid concurrently. Neither has been paid to date.

If this is indeed what occurs tomorrow council will have several options. They do not vote in workshops or e sessions but do provide direction for staff. They can provide direction to: 1. Accept the offer; 2. Reject the offer; or 3. Send the offer back to the Coyotes with a counter proposal.

If you look at the council e session agenda for this meeting it is rather specific:

“A. The City Council will meet with the City Attorney for legal advice, discussion and consultation regarding the city’s position in pending or contemplated litigation, including settlement discussions conducted in order to avoid or resolve litigation. (A.R.S. § 38-431.03(A)(3)(4))

“B. Council will meet to discuss and consider records exempt by law from public inspection and are specifically required to be maintained as confidential by state or federal law. (A.R.S. § 38-431.03(A)(4))”

A.R.S. § 38-431.03 (A)(3)(4) is also pretty specific:

“(iii) discussion or consultation for legal advice with the city’s attorneys (A.R.S. § 38-431.03(A)(3));

“(iv) discussion or consultation with the city’s attorneys regarding the city’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation, or in settlement discussions conducted in order to avoid or resolve litigation (A.R.S. § 38-431.03(A)(4));”

It is possible that they will discuss the city’s current law suit with Vieste over recycling issues at the city landfill but it doesn’t seem probable based upon the events of this past week.

On another topic, the University of Phoenix Stadium hosted a soccer cup game today, July 12, 2015. A friend happened to have lunch at Westgate today. The friend related that the Westgate parking areas were jammed and they finally found a parking space literally in the “back forty” of one of the free lots. They almost decided to leave assuming that if the parking lots were filled, so were the Westgate restaurants. That was not the case. Their restaurant, as well as others, was nearly deserted. Who was parking in all of those free Westgate spaces? They learned it was the soccer game attendees at the University of Phoenix stadium.

The stadium has since its inception relied on Westgate parking spaces for football games and major events. Per the agreement with the Arizona Sports and Tourism Authority (AZSTA) the city is responsible for providing 6,000 parking spaces for the football games and major events such as the Super Bowl and Fiesta Bowl. The city has always fulfilled its commitment to do so. Now AZSTA and the Bidwills are pressuring the city to build a $46M parking garage and the city is acceding to that pressure. Last fall senior staff brought forward a new capital improvement project – the infamous and very expensive parking garage at Westgate. Instead of building a library or a swimming pool as a capital improvement project Glendale taxpayers will be footing the bill for a Taj Mahal of a parking garage. You can count on its cost mounting. Don’t be surprised if the final bill is way north of $50M.

Glendale’s taxpayers are not happy about this. They ask why AZSTA and the Bidwills don’t build their own parking garage. They are the ones who need it. They are aware that the Bidwills sought and gained city approval for the development of Sportsman’s Park East and West. Those development plans include approval for several parking garages. Why don’t the Bidwills invest in a parking garage to meet the demands of their patrons attending their football games? Is it because they don’t want to pay for it? Is there a trigger threshold or event that requires the city to build this parking garage? What is it and has it occurred? Does the parking garage have to be as large and grand as staff presented or can it be scaled down to meet a minimal requirement? Can we wait until Glendale’s financial picture is stronger and can absorb yet another debt payment? When is the city going to prioritize the needs of its citizens first? So many questions – met with…silence.

© Joyce Clark, 2015

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 17 years and 88 days since the city’s pledge to build the West Branch Library.

Please note: Before discussing the city council workshop meeting of Tuesday, March 24, 2015 I wanted to alert you to a very important series of meetings.  The first was on Wednesday, March 25, 2015 at Glendale’s Civic Center. By law every ten years every city must revisit and update their General Plan. This effort is called Envision 2040. The city website says, Every city and county in Arizona is required by state law to prepare and maintain a planning document called a general plan. A general plan is designed to serve as the jurisdiction’s ‘constitution’ or ‘blueprint’ for future decisions concerning land use and resource conservation. All specific plans, subdivisions, public works projects, and zoning decisions must be consistent with the City’s General Plan.” I encourage you to take the time to attend one of 6 district meetings that will be held on this topic and to offer your opinion on what Glendale should become in the future.

Now on to the workshop. Here is the link to the slides used during various staff presentations: Budget Workshop Powerpoint .

It was a full agenda: Budget strategy, property taxation, human resources (employee salaries and benefits); review of FY16-25 Capital Improvement Plan (CIP), review of General Fund Sub-Funds Restructure.

Since the last blog dealt with the Capital Improvement Plan, a follow up is in order. During the staff presentation Mr. Freidline, Public Works Director, stated the number of parking spaces planned is 4,000 at a cost of $14,000 to $16,000 per parking space. At $14,000 per space the bill is $56 million dollars. At the high end of $16,000 per space the bill is $64 million dollars. Who is smoking what when staff allocates $46 million dollars over three years in the CIP? Councilmember Bart Turner has proven himself to be the most effective of all councilmembers. He is articulate, asks the right questions and since the beginning of his service has proposed several very effective actions. The rest of council…not so much.

Mayor Weiers and Vice Mayor Hugh are generally silent; Councilmembers Aldama and Chavira are the Bobsey Twins of the “thank you;” Councilmember Sherwood only speaks when an item aligns with his personal agenda; and Councilmember Tolmachoff’s questions tend to be irrelevant. Keep an eye on Councilmember Turner. His reasoned approach to issues will serve him and the citizens of Glendale well.

In fact, it was Councilmember Turner who said, “The Westgate parking garage is the elephant in the room.” It is that and more. One item never mentioned during this discussion is the AZSTA/Cardinals/Glendale agreement and the stipulation that requires the city to build the parking garage and what exactly triggers that obligation. The public wants to know. It’s strange. The city website has posted all kinds of contracts online going back to at least 2000 but not this one from 2002. Why isn’t it available publicly?

Among other questions, Councilmember Turner asked if the city will build another Taj Mahal immediately or if the garage could be built in phases. He also asked for the number of spaces currently available to the city to meet its agreement requirement and also inquired as to how new development in the Westgate area will impact (and perhaps improve) parking availability. Good questions. They demand answers before this council approves the CIP with the Westgate parking garage for $46 million dollars.

Another CIP item to appear before council was an amount not to exceed $500,000 for an automated library book dispenser. It would be placed in Hero’s Park in the now abandoned skateboard concession stand. The funds would be used to purchase the dispenser, retrofit the concession area and add more of those pesky, costly parking spaces. Mr. Strunk, Director of Parks, Recreation and Library Services, stated that this dispenser is not intended to replace the over arching need for a library in West Glendale.  Clearly it is not. The largest dispenser available can only hold 3,800 books. Wasn’t there dismay in the library community when there was the possibility of downgrading Foothills library to a collection of 35,000 books? The dispenser will only accommodate 1/10 of a Foothills collection. Mr. Struck did not speak to the manpower that will be needed to service this dispenser. After all, someone will need to gather up the books and transport them to the dispenser as well as picking up returned books daily. As Mayor Weiers observed there is also the issue of security. The location is very dark and very lonely. Maybe they can install a half dozen strobe lights…Or a large, very tall, well lit digital billboard would work well too (courtesy of DM).

Why has the stop gap proposal of a library book dispenser popped up all of a sudden? Could it be the renewed request by West Glendale residents for the West Branch Library? Do not think that this action will diminish the need for and the growing demand for the West Branch Library.

Another item of interest on the agenda, especially for City of Glendale retirees, is the increasing cost of medical insurance premiums to that community. As an example, my monthly payment for medical insurance through the city for my husband and I is $1,117. As of July 1, 2015 that will increase to $1,280. That is a monthly premium increase of $163 or $1,956 a year. Yet the slide on premiums for retirees over 65 shows a monthly increase of $88 or $1056 a year. Hmmm…it looks like Jim Brown, Director of Human Resources, was only off by $900 a year. It’s almost to the point that retirees’ entire  monthly pension check will be used exclusively to pay medical premiums. Glendale retirees are worried. They took a big, big financial hit last year with a major increase in the premium and now it seems as if the plan is to continue, only incrementally.

Last, although not discussed at this workshop but a week earlier, is the council action to approve Finance Director Duensing’s plan to wipe out its debt repayments to the city’s Enterprise Funds. Glendale, in order to pay the NHL a management fee for the arena, borrowed $15 million from the water and sewer Enterprise Fund; $40 million from the landfill Enterprise Fund; and $5 million from the sanitation Enterprise Fund. When asked how the Enterprise Funds could make up for the loss, Mr. Duensing said, “you could do rate increases, you could defer maintenance, you could cut your operating losses.” Oh really, Mr. Duensing? The repayment to those Enterprise Funds was a firm pledge of a previous council. It was their solemn intent to repay those funds over time. To erase that debt in some kind of accounting trickery is beneath contempt. Is this Glendale’s future? To erode the intent and word of a council to the point where it becomes meaningless? At what point will we, the residents, no longer believe council’s word?

© Joyce Clark, 2015

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

It has been 17 years and 82 days since the city’s pledge to build the West Branch Library.

This afternoon, March 24, 2015 at 1:30 PM the city council will be meeting in workshop session to receive more information on the proposed Fiscal Year 2016-17 budget. The focus will be on the Capital Improvement Program.

The City of Glendale has posted the Capital Improvement Program (CIP) 2016-2025 on its website.  Here is the link: CIPDRAFT3_24v

The current proposed CIP has no funding from the General Fund for anything other than construction of a parking garage at Westgate. One note: you will see funding for water, sewer and sanitation projects but their bond repayment is not from the General Fund. They are paid from stand alone Enterprise Funds and the Enterprise bonds issued are paid back from the rate payers who use those services. You will also see funding for some street and airport projects but the funding for those does not come from the General Fund either. They are funded from the voter approved, dedicated portion of the sales tax that goes into the Transportation Fund.

The city’s General Fund is used to pay ongoing operating (the largest line item being employee salaries) and maintenance expenses (for city facilities) as well as to pay back bonds that have been issued for the following categories:

  • Fund 1980 – Street/Parking bonds
  • Fund 2140 – Open Space/Trails bonds
  • Fund 2060 – Parks bonds
  • Fund 2160 – Library bonds
  • Fund 2040 – Public Safety bonds
  • Fund 2080 – Government Facilities bonds
  • Fund 2130 – Cultural Facility bonds
  • Fund 2100 – Economic Development bonds
  • Fund 2180 – Flood Control bonds                                                                                              

The major General Fund bond issuance in the draft CIP 2016-2015 is for a parking garage at Westgate. It is Project 68124, Parking garage at Westgate with the following schedule of funding:

  • FY 2016 $  2,404,337
  • FY 2017 $20,000,172
  • FY 2018 $23,999,730
  • TOTAL  $46,404,239

Within the General Fund bond capacity funding are a few, small street projects (about 3), each less than $350,000; $1.6 million to upgrade storm drains; and an upgrade of the police digital communication system for $1.9 million. There is nothing even considered until after 2020 for Open Space/Trails, Parks, Library, Government Facilities, Cultural Facilities or Economic Development. These are all quality-of-life amenities that make a city great. They are the projects that attract new residents to Glendale and new businesses that appreciate the amenities that will help them attract quality employees. All of that is forsaken for a new parking structure at Westgate for over $46 million dollars. Trust me…that price tag will increase over time.

This new parking garage will cost a little under a million dollars annually for utilities and maintenance. A new operating expense will be added to the General Fund. For the past ten years staff was required to show where new money for a new operating expense would come from. The narrative for this expense within this CIP is cursorily dismissed with “Additional O and M will be absorbed within the current operating budget.”

The bottom line is that Glendale still has a structural deficit. To date, former City Manager Fischer and the Director of Finance, Tom Duensing, have used band aids. They have refinanced the city’s debt (done previously and historically when the market is favorable) and they have relied on making the temporary sales tax increase permanent. They have never attacked the real problem – the city is spending more than it takes in while it’s major debt components (construction debt for the arena and ball park and the annual $15 million dollar payment to Ice Arizona for managing the arena) bleeds the city dry.

Until senior management decides to live within its means by cutting General Fund expenses and resolves the construction debt burden and the $15 million annual payment burden we won’t see the city build amenities that can be used by its residents.

Apparently senior management believes there is some debt repayment capacity within the General Fund. What is it being used for? A parking garage at Westgate. Can you imagine what could be done with $46 million dollars? The city could build the West Branch Library, and still have money left over to renovate and upgrade existing parks and build some new parks as well. In other words, that money could be used to upgrade your quality-of-life and attract new business development to Glendale.

Why a parking garage at Westgate now? There is a 2002 contractual obligation with the Arizona Sports and Tourism Authority (I no longer have a copy of the agreement) that requires the city to guarantee 6,000 parking spaces for games. Those spaces have been located within Westgate since the stadium opened. As Westgate’s land is used for new development those 6,000 spaces diminish. However, there is still a great deal of raw land to the east and north within Westgate. The purpose of the Youth Sports fields construction just to the east of the stadium was to relieve any parking spaces lost in Westgate proper. It provides 4,000 to 6,000 overflow parking spaces that still fulfill the agreement’s requirement for parking. Apparently that’s not good enough for the Bidwill’s who have been grousing and pushing for this parking garage for several years. So, the city has caved and will build the parking garage to be completed by the end of 2017. Great for the Bidwills…not so great for the residents of Glendale.

It’s a matter of priorities. It seems the greatest priority is to build a parking garage in Westgate while bonding for another $46 + million dollars and lesser priorities — to be fulfilled someday — are the quality-of-life amenities that Glendale citizens can enjoy.  Is this your priority? If not, what are you going to do about it? Sit back and eat it? Or let your councilmembers know what matters to you?

© Joyce Clark, 2015

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.