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Joyce Clark Unfiltered

For "the rest of the story"

Here is the letter Freightliner sent to Joe Hester, President of the Glendale Fire Union. Note that it was copied to the City Manager, the City Attorney, the Mayor and all Councilmembers and the Glendale Star. I apologize if the formatting is a little wonky. I am still not an expert on all things blog.

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February 17, 2014

Joe Hester
Captain, Glendale Fire Department
Vice President, United Phoenix Fire Fighters Association
Glendale, AZ 

 Dear Mr. Joe Hester.

I am shocked that you are attacking Freightliner Arizona with baseless facts and trying to characterize our organization as not wanting to support the safety of the Firefighters in Glendale.

In your opinion piece, “Fire Truck Manufacturers Should stick to the Facts”, you point out that Freightliner of Arizona was offering an inferior product that lacked the Extruded Body and Cab, the Telma Auxiliary Brake in our proposal.  Maybe you never got a chance to look at our proposal, but it included those items at a price of $422,838, plus tax.

We spent a great deal of time trying to get specific information in written form so we could verify we were providing exactly what Glendale Fire wanted.  What we received were a couple of verbal “Must Haves”: Extruded Body and Cab, Telma Brake and Electronic Valves.  These items were all supplied in our proposal.  We even went as far as going to a Glendale Fire Station to measure the body and compartment dimensions so we could have Rosenbauer duplicate them and draw up the apparatus to best match the equipment being used by the department today.

It is insulting that you or any Fire Fighter might feel that Freightliner of Arizona would condone providing inferior or unsafe Fire Apparatus to any community, least of all Glendale Fire.  We know that there are severe budget issues facing the community and some of the “must have options” are very expensive and not widely used throughout the industry. Freightliner of Arizona’s proposal included all of these items, but communicated to the Department that there were less expensive more widely used options that could be provided; Thus, saving the Department and Glendale money so that these funds could be used for other purposes in the Department.

You claim that all of the communities around Arizona have these options.  I would ask that you investigate this claim, because you will find that 80% do not have Extruded Bodies and that 90% do not have Telma  Brake and about 90% do not have electronic valves.  These items are available on Fire Trucks and fit certain purposes, but the cost versus the benefit has been reviewed by most of your fellow fire fighters and they chose not to have these items on their apparatus.  I am sure that you feel that these are needed in Glendale, but the majority of fire fighters do not. There is no data that would indicate that these items improve safety for a fire fighter. If there was, the National Fire Protection Association, which provides governance over Fire Fighter Safety, would require these devices on all fire apparatus.

Freightliner of Arizona has been providing Fire Apparatus and parts, service and warranty to Arizona Fire Departments since 1998, and did not just return to selling Fire Trucks as you said.  We have participated with most of the major Fire Departments in bids and RFP’s.  We have never had to approach a City Council about how we were treated in the procurement process.  We have never suggested that Fire Fighters should ever be put in unsafe apparatus or conditions.  We believe quite the opposite!  We understand, probably better then most, the importance of fire fighter safety and how vehicle specification and design can insure it.

Joe, it is extremely unfortunate that you have been misinformed about what we provided to the Glendale Fire.  I am providing you a copy of what we submitted to Glendale so you can confirm what I am telling you is the truth.  I hope you realize that our objection on the way the procurement process was handled was not an attack on Glendale Fire Fighters, but on the people who were responsible to conduct themselves as professionals and fiduciaries of the community. 

I think that when all the facts weigh in you will see that Freightliner of Arizona was mislead and provided inaccurate information on which we provided a proposal.  The apparatus our competitor proposed to Glendale Fire was not the same design and more expensive resulting in the Council being asked to approve $484,000 plus dollars instead of the $422,838 we bid.  With tax that only comes to $ 57,934.  That leaves over $26,000 unaccounted for!  Doesn’t that concern you?  It sure did us!  Especially when we knew we included the “Must Have” components and told that our bid was high bid!  It just doesn’t add up!

Freightliner of Arizona is not the enemy of Glendale Fire Fighters.  That is not why we brought this issue to the Council.  We did it because the procurement process to purchase this new Fire Truck was broken. We want to participate in a fair and transparent process where the most competitive and responsible bidder wins the award! We look forward to participating in the new RFP that Glendale Fire will be issuing.  We hope the process will be fair so if we can provide the best, safest and most competitive Fire Truck, we hope Glendale Fire will want to do business with us.

Respectfully,

Timothy Noeding
General Sales Manager
9899 W Roosevelt   St.
Tolleson,AZ85353                                                                                                                       
 
 
 
 
 
 
 
Cc: Mayor Jerry Weiers
Manny Martinez
Yvonne Knaack
Gary Sherwood
Sam Chavira
Ian Hugh
Norma Alvarez
Brenda Fischer
Michael Bailey
Glendale Star

Here is the Freightliner bid document. Freightliner represents Rosenbauer in Arizona:

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Bid Price and Delivery Schedule For 

************ City of Glendale ***********

 Rosenbauer America, LLC is pleased to provide this bid proposal. The proposed apparatus has been tailored around the requirements of the fire service industry and we are confident that our proposal will meet and exceed the needs of the department. The proposed apparatus will be constructed utilizing only the highest quality materials and workmanship available in the industry.  The apparatus will provide the upmost firefighter safety and efficiency on the fire ground along with extended life and lower maintenance cost throughout the life of the vehicle.

   [1] Rosenbauer Commander pumper w/EXT body:      $422,838.00 plus tax and HCAC fees

    * See page 2 for prepayment discounts and page 3 for additional options

The specifications herein contained shall form a part of the final contract, and are subject to changes desired by the purchaser, provided such alterations are interlined prior to the acceptance by the company of the order to purchase, and are provided such alterations do not materially affect the cost of the construction of the apparatus. 

The proposal for fire apparatus conforms to all Federal Department of Transportation (DOT) rules and regulations in effect at the time of bid, and with all National Fire Protection Association (NFPA) guidelines for automotive fire apparatus as published at the time of bid, except as modified by customer specifications. Any increased costs incurred by the first party because of future changes in or additions to said DOT or NFPA standards will be passed along to the customers as an addition to the price set forth above.

Contract Terms

Delivery:

The proposed truck will be completed in no more than:   330-360 Days ARO

Price Terms:

This offer shall remain valid for thirty, (30) calendar days from the quotation submittal date of November  22, 2013

Payment:

Contract payment of one-hundred percent (100%) of the purchase price shall be paid upon delivery and acceptance of the completed unit.

Prepayment options:

As an option Rosenbauer is offering a prepayment discount should the City wish to 100% prepay for the apparatus at the time of order. This option will include a 100% performance to guarantee the production of the unit. The prepayment discount would be $5,707.00 and would drop the sale price to $417,131.00 plus tax and HGAC fees. The tax rate would drop from 8.3% to 5.6%.

 Original price                    $422,828.00 + $35,096.00 (8.3%) = $457,934.00 plus HGAC fees

Prepayment price               $417,131.00 + $23,359.00 (5.6%) = $440,490.00 plus HGAC fees

The prepayment option would save the City over $17,000.00.

I want to thank the City of Glendale for the opportunity to serve the needs of the department.       

Sincerely,

Chad Horne
 
Rosenbauer America

 

It has come to my attention that Freightliner has sent a response letter to Joe Hester, President of the Glendale Fire Union. Included in the letter is Freightliner’s assertion that the extended cab and Thelma brake system were indeed included in their bid at a cost far less ($422,000) than the $484,000 E-One truck for which the fire department was seeking approval from the city council.

So what’s going on? Hester said the following in his op-ed piece, “The truck Freightliner submitted to GFD for evaluation was not the extruded body cab used by our city and every other Valley fire department.” He went on to say, “The other key difference? The vehicle’s braking system.” Apparently these items were indeed included in Freightliner’s bid.

Was Joe Hester misinformed by one of his own people about the Freightliner bid? Did he not check Freightliner’s bid himself before he wrote his op-ed piece? Or is he deliberately attempting to confuse the issue and the apparent fact that the bid process was flawed?

As soon as I obtain the documents from Freightliner I will post them here for all to see – I suspect they will not be difficult to get.

© Joyce Clark, 2014

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.

Jamsheed Mehta, Executive Director of Transportation, and briefly Interim Assistant City Manager for the City of Glendale is leaving on March 12, 2014 to serve the City of Marana. Jamsheed has been with the city since 2005 and in that period his quiet intelligence and competence has served the city and him well. It is disappointing to see that he did not receive the appointment as Assistant City Manager.

His departure may very well be a precursor to the exodus of other talented employees who see the handwriting on the wall under the current regime. Many have indicated their concern as City Manager Brenda Fischer (from the Town of Maricopa) surrounds herself with Town of Maricopa cronies or Glendale employees with questionable resumes earned under the tutelage of former City Manager Ed Beasley.

There is now a readily identified coalition within councilmember ranks that form a majority on most issues. It consists of Vice Mayor Knaack and Councilmembers Sherwood, Martinez and Chavira. The minority is Mayor Weiers and Councilmembers Hugh and Alvarez.

It is not so surprising that Knaack and Martinez would join with Sherwood and Chavira. Some have speculated that both are tired, burnt out and so have opted for the path of least resistance. Both will not be running for reelection and have blessed others to take their places. Martinez has endorsed Robert Petrone, seemingly a man of questionable substance considering his financial past. Knaack is rumored to pass her legacy on to Bill Toops, owner/publisher of the Glendale Star. A man who could experience conflict from the very start, if he runs and is successful in getting elected, as he tries to serve two masters: the paper which provides him income and a city which in the past has often dismissed his paper’s relevance.

Weiers has got to find a way to raise his visibility as Glendale’s mayor in the community. It’s a problem that all mayors in Glendale have had. It used to drive former Mayor Scruggs nuts. In poll after poll, most respondents could not name her as mayor and when they did, they often mispronounced her name as Scaggs or Shruggs. Weiers may be taking actions that are good for Glendale but unfortunately no one knows what they are. He should be wary of Councilmember Sherwood’s ambition.

It is said that Sherwood is in his office in City Hall every day and has de facto assumed the role of Mayor. Why not? Sherwood has the ear of the City Manager. Sherwood is riding high these days with 3 other votes behind him but fortunes can change on a dime. One of his more questionable actions was to actively insert himself into the selection process for a new City Manager. It is said that he met privately, one-on-one, with Ms. Fischer during the process and then actively solicited support of the other councilmembers for her acceptance. There is nothing illegal about his action but ethically it is highly unorthodox. No other councilmember in memory has ever had a private, one-on one with a potential City Manager candidate and then actively lobbied for same.

Everyone acknowledges that Fischer owes Sherwood big time for her hiring. Also of note is Fischer’s spouse is either still a fire fighter in Henderson, NV or was a fire fighter there for years. Add to that Frisoni’s spouse is or was a police officer. Will these relationships color their actions toward public safety? We may have seen it already as one of Fischer’s first actions was to bring the fire department deficit before council allowing it to receive additional funding. No other department received that kind of consideration.

Chavira, on the other hand, appears to be silent, nearly invisible, merely along for the ride, cutting the best deals that he can for him and his fire department union buddies. That is not surprising either as we have seen questionable fire union actions involving his participation prior to his successful bid for a council seat. Alvarez’ past actions and record make her irrelevant. She has a record of contributing little or nothing to crafting solutions. Hugh, on the other hand, has an opportunity to break out. There have been a few flashes when he has spoken that give hint to a thoughtful man.

Based upon the current political landscape where is Glendale headed? Perhaps down the proverbial rabbit hole where “up “is “down” and “down” is “up.” Glendale appears to have two paths before it: Bankruptcy where city debt and rising O&M expenses are so high that no amount of palliative change orchestrated by Fischer, et.al., can save it; or a Glendale saved from falling over the cliff but divested of all that we love about it, lean and mean, soulless but saved.

© Joyce Clark, 2014

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.

This is a follow up to my recent blog of February 5, 2014, “Here come da Chief.” New information has become available, most specifically, a letter from Freightliner distributed to all councilmembers which is now a public record. It raises some very interesting questions.

Apparently the fire union chose E-One as the successful bidder. The process was handled internally by the fire department, not the city and not its Procurement Division. Perhaps Procurement would have been more appropriate to handle this transaction.  You will remember that questions were raised by Freightliner the night of the council meeting during the Public Comment when this item was on the agenda for council approval. It was pulled by the City Manager and it looks like the process will be repeated with a formal RFP process this time. It seems someone’s hand was caught in the cookie jar.

Freightliner has been around for quite some time and has been the successful bidder on multiple occasions throughout the state. E-One not so much. The City has previously used E-One to supply some of its equipment.  Apparently Wayne Smith (who handled the current process), Don Jesse and others have had a close relationship with E-One since it began operation. Some of these gentlemen appeared to have either ownership interests or were employed by E-One. If true, that alone, is sufficient for their recusal from the process.

The city received an excellent bid from E-One but how?  Apparently Wayne Smith was frantically calling Freightliner representatives at 4:30 one morning to secure specific information on their bid. Did Smith provide this information to E-One so that it could tailor its bid to come in $3,000 lower than Freightliner’s bid?

We know the E-One bid was higher than the grant monies provided for the fire truck’s purchase. It appears the purchase can be made for less money. Why is a department which is sorely in need of revenue with many other needs, such a new firefighter gear, wasting money by asking for fire truck options that are outdated and frankly overkill? According to Wayne Smith’s conversation with Freightliner representatives, it appears that the fire union was requiring these options. Why?

The city has historically used a traditional pumper. The E-One bid was for a rescue pumper with a different design from that which Glendale currently uses. It would require extra training for its use. How much would that have cost the city?

E-One is a company that seems to be struggling. It is currently owned by a hedge fund and has had a succession of presidents lately.  Apparently their ability to offer maintenance and support for this bid is dwindling and in doubt.

This particular bid process seems to reek of favoritism and may very well be unethical. Apparently Glendale continues to have problems in practicing ethical behavior, even under its new senior management.  The universal hope was that there would be a new era of leadership. Yet all signs point to a continuation of previous behavior. How disappointing.

© Joyce Clark, 2014

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.

City Manager Brenda Fischer announced that effective March 3, 2014 Julie Frisoni and Jennifer Campbell will become Assistant City Managers in Glendale. Let’s begin this exercise by reviewing the Human Resources requirements for the position. As of July 1, 2008 the last time the position was reviewed it required a “Master’s Degree in Public Administration, Business Administration, Management, or a related field and ten years of progressively responsible administrative experience in a municipal government organization with five of those years being in a municipal management position. Any equivalent combination of training and experience that provides the required knowledge, skills, and abilities, is qualifying.”

Jennifer Campbell has a master’s of education degree with an emphasis in leadership and public administration from Northern Arizona University and a bachelor’s degree in recreation management from Arizona State University. Campbell has more than 16 years in municipal government positions at the Cities of Peoria and Goodyear and, most recently, at the City of Maricopa as community services director.

Frisoni holds a bachelor’s degree in communications from Arizona State University and since 2002 (12 years) has worked for Glendale rising to Executive Director of Communications and Marketing. You will note that a master’s AND a minimum of ten years experience is required. Frisoni may have the years but she has no master’s.

Some will make the case that they are qualified due to the numbers of years of experience each has accrued for it certainly won’t be due to their educational qualifications as neither has a master’s in the requisite areas of public administration, business administration or management. It will be argued that both meet the minimum qualifications with a combination of training and experience. They may or may not but the kind of experience that both have amassed is of consideration.

Their Assistant City Manager functions include:

  • Provides administrative direction to the Deputy City Managers for their areas of responsibility in working towards the achievement of goals for the individual department(s) and the City of Glendale.
  • Manages the daily operations for the City of Glendale.
  • Serves as a member of the City’s top management team in establishing and maintaining good management policies and procedures.
  • Reviews the activities of the general operation to determine efficiency; confers and assists the City Manager in formulating a business strategy.
  • Advises the City Manager of issues and operational progress through oral and written reports.
  • Interprets and implements policies received from the City Manager and the City Council.  Provides administrative direction and support to staff in analyzing, developing, implementing and evaluating policies, programs and procedures.
  • Advises staff on major projects and in resolving conflicts and problems.
  • Represents and supports the policies of the city to members of the public, press, and civic groups.
  • Represent the City Manager during his/her absence.
  • Reviews annual city budget and makes recommendations to the City Manager

 “With these two appointments, the city is continuing to embark upon a continued direction of stability in our senior management organizational structure with seasoned professionals who have demonstrated a dedication to serving the public,” said Fischer. “Both Ms. Frisoni and Ms. Campbell share my vision and approach to local government management, including fiscal responsibility, open and transparent government, collaboration and excellent communication skills.”

The stage is now set and the cast of characters complete. At the helm is Brenda Fischer from the Town of Maricopa. Directly under her is Jennifer Campbell from the Town of Maricopa and Julie Frisoni, a member of former City Manager Ed Beasley’s “inner circle.” To round things out Michael Bailey is the new City Attorney. Bailey had or has close ties to former City Attorney Craig Tindall who sent the alleged and now infamous email solicitation on a city computer requesting consideration of his son when making a school tuition tax deductible donation. One of those on his recipient list was none other than…Michael Bailey. Add to this mix the new Executive Director of Finance, Tom Duensing, who also comes from the Town of Maricopa. The consolidation of power continues. Fischer has surrounded herself with former allies from Maricopa and others with ties to former City Manager regime. Those who have demonstrated records of competence and expertise, such as Stuart Kent, Jon Froke and Erik Strunk, are ignored. Palace intrigue has a new home and off with the heads of anyone who dares to challenge their agenda.

More disturbing is that these actions signal the end of an era in Glendale. For the 46 years that I have lived in Glendale, even when it experienced tremendous growth, it still retained a small, intimate hometown atmosphere. A good example is citizen volunteerism for city Boards and Commissions. For years council had no problem filling those positions and often had a waiting list. Why? Because people felt that they had the power to actually effectuate change. Their councilmembers and senior management staff were accessible to them and very responsive. They were not necessarily satisfied every time but response was immediate. There was a genuine connection between those who ran the city and those who lived in the city. Senior management staff often had lived in the city for years and had developed strong roots and a genuine interest in their community. All of that is gone. Today we have citizens with no deep ties to Glendale, expecting to move on because of job circumstances, familial reasons or simply with an itch to go someplace new to them. There is no cultivation of appreciation for Glendale and what it means in their lives. There is no waiting list to serve on a Board or Commission any longer. In fact, some volunteer positions go unfilled for extended periods of time.

Today we have senior management in positions of leadership with no historical memory of Glendale. You can see it when Tom Duensing is asked about transfers in previous years from the arts fund into the general fund and he has no clue, responding that he will have to get back to council after he has done some research on the issue. Gone are the Charlie McClendons, Paula Illardos, Grant Andersons, Jim Devines, David Prescotts, Ken Reedys, Rodeane Widoms, Lillian Hamiltons…who had a genuine love of Glendale, deep roots and vast historical memory.

Now those running Glendale consider it a “business.” The bottom line is paramount without any genuine sensitivity for how their decisions will impact the quality of life of its residents. Yes, they will probably dig Glendale out of its current fiscal crisis but at what cost to the heart and soul of a once great city renowned for its connection to its residents?

What about the current city council? So far they have abdicated their leadership roles to senior staff as they appear unable to come to grips with the fiscal crisis. Mayor Weiers tailors his actions to a reelection bid. Vice Mayor Knaack attempts to appease all. Councilmember Sherwood embraces the new “business” model. Councilmember Chavira is silent. Councilmember Alvarez is full of bitterness and negativism. Councilmember Hugh damaged by his close ties to Alvarez is ineffectual. Councilmember Martinez, as a lone voice, has flashes of remembrance of the essence of Glendale. None question or challenge deeply allowing themselves to be swept by the tide of fear that engulfs them. After all, it far easier to let senior staff make the decisions and simply accede to their recommendations. Ultimately council is responsible for the demise of Glendale as long time residents have known it and loved it. It is sad and deeply disappointing to watch events unfold. That is not to say change should not be embraced for change is necessary to survive. Will it be done with sensitivity and a velvet glove or bludgeon the city with a sledge hammer?

© Joyce Clark, 2014

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.

Lately media reported the reason Glendale would not be hosting NFL Super Bowl related events was that the Bidwills, the NFL and the Arizona Host Committee felt Glendale was not fulfilling its obligations with regard to the parking provision or capping Glendale’s hotel room rates. Oh really? It was all smoke and mirrors. Let’s revisit the Cardinals/Arizona Host Committee bid.

Mike Sunnicks had an article about the bid in the Phoenix Business Journal on October 12, 2011, 2 and 1/2 years ago. Here is the link: http://www.bizjournals.com/phoenix/morning_call/2011/10/arizona-super-bowl-to-have-downtown.html  .

The story says in part, “Concentrating more Super Bowl-related events in downtown Phoenix was a key component of the winning presentation put together by the Arizona Cardinals, advertising agency E.B. Lane and the Arizona Host Committee.” It went on to say, “For the 2015 game, the Valley’s bid promoted more downtown Phoenix events. That includes the media center and media hotels.

There could also be a Super Bowl Village fan experience at the Phoenix Convention Center as well as major concerts, public and private parties, and other events hosted at CityScape, downtown hotels and other venues — possibly including theaters, Chase Field and US Airways Center.”

Rutherford, New Jersey can feel Glendale’s pain. That’s where this last Super Bowl was hosted but the media ignored Rutherford and planted themselves in New York City, a far sexier site. Nearly every advertisement and every major NFL related event for the Super Bowl was in New York City. Gosh, New York renamed a street as Super Bowl Boulevard. That is exactly the treatment Glendale got the first time around and will experience this time as well. All major advertisements and the media will tout Phoenix, not Glendale.

At the time of the latest bid clearly Glendale was already being pushed aside by the Bidwills, the NFL, the Arizona Host Committee and the Arizona Sports and Tourism Authority (AZSTA). That is why when Michael Kennedy (past President of the Host Committee and the Cardinals’ attorney) presented the bid before the Glendale City Council seeking their support he positively sneered at my request that the Host Committee support a bill that would recompense Glendale for its expenses. All of them probably rue the day they decided to build the stadium in Glendale because they sure act that way. It appears to be inconsequential to them if Glendale loses money as the host city. Their view of Glendale is as a minor player and has never been welcome at the “big boys’ table” with any sense of legitimacy.

Why the public vituperation by Michael Bidwill now? It sounds good to accuse Glendale of a lack of cooperation hosting the Super Bowl but that’s just more smoke and mirrors. The real reason is likely that the Bidwills want Glendale to build that darned parking garage…now. Is he using the Super Bowl to put pressure on Glendale? That is for you to decide and many of you may come to the conclusion…yes.  Mr. Bidwill violated the cardinal rule (no pun intended!) about airing dirty linen in public. In so doing, he may very well have damaged the Valley’s chances to host future major events.

© Joyce Clark, 2014

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.

The afternoon workshop session of the Glendale city council of February 4, 2013 was a presentation by Stuart Kent, Glendale’s Executive Director of Public Works (there’s that pesky Executive Director title again!) and the consultancy firm of Rider Levett Bucknell, Ltd. (RLB) at a cost of slightly over $100,000. The presentation was a Total Life Cycle Cost Assessment of the city owned facilities of: Jobing.com Arena; Renaissance Hotel Convention Center & Media Center; Renaissance Parking Garage and Camelback Ranch. Here is the link to the slides used for the presentation: http://www.glendaleaz.com/Clerk/agendasandminutes/documents/01PPT-TLCCAssessment-FinalFinalWorkshopPresentation.pdf  .

The afternoon session was over in the blink of an eye, and lasted for about the half hour it took to make the presentation. Councilmembers eyes glazed over and there was only one question from Councilmember Martinez on a point on which he needed clarification.  Did these councilmembers read this report? Your guess is as good as mine but I would wager most of you would say they did not read it. Well, I did – all 150 pages plus. I even had to find one of my Dad’s magnifying glasses to read all the exhibits which were compressed into teeny, tiny print to fit on an 8 1/2” X 11” sheet of paper. That was no mean feat.

The city can’t catch a break. The financial news goes from bad to worse as contractual costs of maintaining these facilities contribute to the ever-mounting bills the city must pay every year. RLB uses a 50 year life cycle for these facilities. They believe these facilities will last for 75 to 80 years. While that may be accurate, it seems that in 20 years or so the tenants will demand facility updates to remain competitive. That issue was never asked and never addressed. Here are the more important “take aways” from RLB’s Assessment.

Take Away #1: From the Workshop Council Report, Page 1: “The facilities are managed by the current tenants, with associated costs for operation and basic maintenance the responsibility of the tenants. The cost for the capital replacement and repairs are the responsibility of the city in each of the facility agreements.”

Take Away #2: The chart below is an estimate only. The figures could be higher or could be lower than projected or council may decide to delay some improvements.

Capital Improvements: Budget Recommendations, 5-Year Summary

FACILITY

FY 2015 FY 2016 FY 2017 FY                   FY 2018               2019                 Totals
Jobing.com   Arena $4.9M $3.1M $0.0M $0.3M $9.6M $17.9M
Renaissance   Convention & Media Center $0.3M $0.5M $0.6M $0.0M $0.2M $1.6M
Renaissance   Parking Structure $0.1M $0.0M $0.9M $0.0M $0.1M $1.1M
CamelbackRanch   Park $2.1M $0.1M $1.3M $0.7M $1.9M $6.1M
Totals $7.4M $3.7M $2.8M $1.0M $11.8M $26.7M

Take Away #3: Assessment Page 5: “The (arena) facility includes adjacent sitework, parking areas and a service road.” On Page 9 of the Assessment it says, “The City shall be responsible for capital maintenance of the arena Parking Area, which shall include but not be limited to striping, patching, and resurfacing. Section 8.2.1(d).” Yet the city only receives parking revenue after the first $20,000 per event goes to IceArizona. One would think there should have been some cost sharing  for repair and maintenance negotiated.

Take Away #4: Although on page 7 of the Assessment it says it provides the following, no attached facility condition assessment checklists were provided in the report. “The defective items are listed in the attached facility condition assessment checklists and evaluated in the attached facility condition assessment estimate.” It is an important omission. The NHL when managing the arena identified the roof as needing major repair at an estimated cost of $2 million. Without the defect list it is difficult to determine if immediate major roof repair of the arena is included. Defects are categorized under the following headings; 

  • Programmed Maintenance
  • Preventive Maintenance
  • Unscheduled Repairs
  • Emergency Repairs
  • Deficiency Repairs”                                                                                                                                                   

Take Away #5: Page 21 of the Assessment states, “Based on review of the information received to date RLB believes the current building related Sustainment, Operations and Maintenance costs are in the region of $10,000,000 per annum (for the following items):

  • Custodial
  • Energy
  • Grounds
  • Maintenance & Replacement
  • Management
  • Pest Control
  • Refuse
  • Security
  • Telecom
  • Water & Sewer”

It continues on Page 22 with, “In addition to the above noted items there are other additional event-specific related Operational costs (direct event labor and expenses) which currently cost up to $4,000,000 per annum, depending on the number of events being held at Jobing.com Arena. At the time of commencing this TLCC Assessment RLB understood that a portion of the event related expenses were being reimbursed by the National Hockey League (NHL).” To whom?

Take Away #6: From 2003 to 2013 the Projected Arena Income was a negative $43,319,000. When you think about it, it is logical. From 2003 to 2009, 6 years, the city paid no management fee. Since then the city paid the NHL $25 million a year for a total of $50,000 million. There were revenues earned during that period but not enough to cover that major expense. What should be of concern that from 2014 to 2018, the next five years, the projected revenue income is projected to be a deficit of $20,577,000.

Take Away #7: There are 910 parking spaces in the 4 level parking garage per page 7 of RLB Renaissance Parking Structure Assessment. On Page 13 it states that the Hotel has 460 garage spaces + 240 surface parking spaces. Jobing.com Arena Management is allotted 450 of the garage parking spaces. Those are premium parking spaces for which IceArizona charges $20 or $25 per space.

Take Away #8: On Page 28 of the RLB Camelback Ranch Assessment it states,  “As noted previously within this report, RLB did not receive any detailed, specific information pertaining to current Sustainment, Operations and Maintenance costs for Camelback Ranch Park. Based on RLB’s review of a 2011 Cactus Little League Facility Summary (as researched by Broughton/Heimstead) we believe the current facility related Sustainment, Operations and Maintenance costs may be in the regions of $3,800,000 per annum (for the following items):

  • Custodial
  • Energy
  • Grounds
  • Maintenance & Replacement
  • Management
  • Pest Control
  • Refuse
  • Security
  • Telecom
  • Water & Sewer”

What does all of this mean? Darned if I know. No, really, it demonstrates that there are two elephants in Glendale’s room. Check out this comparison.  It’s down and dirty because some of the numbers can only be estimated at this point but it gives one a feel for what is happening at each facility.

                                                        Jobing.com Arena           Camelback Ranch

 

Annual construction debt                    $12M                           approx. $25M

Average annual Capital                      $3.5M                                      $1.2M

Improvement Expense Est.

(over next 5 years)                          

Annual Management fee                      $15M                                           0 

Total average annual expense             $30.5M                                  $26.2M

 

AnnualEst. projected revenue            –  $3M                                      -$ .3M

Annual Est. projected deficit               $27.5M                                   $25.9M

                                        

As can be seen, the deficit numbers for each facility are pretty close to one another. Yet, I cannot begin to count the number of times that someone has said, “Don’t blame the arena for Glendale’s financial problems. Take a look at Camelback Ranch. That’s the real problem.” As you can see, each is a tremendous financial burden on the city at a time when the city faces financial crisis. There are, indeed, two elephants in Glendale’s room. 

© Joyce Clark, 2014

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The February 4, 2014 morning session of the city council workshop was devoted to budget issues. Here is the link to the presentation slides used by city staff:

http://www.glendaleaz.com/Clerk/agendasandminutes/documents/BudgetWorkshop-20140204.pdf .

It was a long and complicated presentation. I am not reviewing all the minutiae of the meeting but rather let’s look at the “take-aways.”

  • Take-Away #1: Council approved staff’s recommendation that the property tax rate float. The total property tax rate prior to the Great Recession was $1.5951 in Fiscal Year11-12. In Fiscal Year12-13 it was $1.9005. In Fiscal Year13-14 it is $2.2889. Solution #1 to raising more revenue increases the total property tax rate per $100 by $0.6938.
  • Take-Away #2: Council approved making inter-fund interest rates variable based on what the city receives as a return on its investments. Council borrowed money from the landfill, water/sewer enterprise funds as well as the technology replacement fund and the vehicle replacement fund. By floating the interest rate to the rate the city makes on its investments saves the city a considerable amount of interest debt on those loans. The current interest rate is 3.62% at a cost of $1.6 million. With adoption of a variable rate the interest becomes 0.40% next year at an interest cost of $178,640. Solution #2 to raising more revenue makes the interest rate on internal loans variable.
  • Take-Away #3: Council approved a series of 5 strategies to raise further revenue. They include transferring dollars out of the total arts fund balance of $1.066 million. Several years ago Council transferred a little over $2 million out of the arts fund. So it can be done. I don’t think anyone wants to see the arts fund be dissolved and it should retain a fund balance. Another revenue raiser is to audit companies that pay sales tax revenue to the city. Clearly Mayor Weiers (pro business) was uncomfortable with this concept. Staff contends that it will raise revenue for the city but could not project how much. Staff proposed that the amount the General Fund charges departments for support, i.e., legal, financial, human resources, be increased – modestly. Staff indicated that they are still working on a city asset list of properties for sale or lease back. Staff also proposed that the temporary sales tax become permanent, that the rate be increased and that the list of taxable items be increased. Solution #3 is to get blood out of a stone.
  • Take-Away #4: These expenditure items are still in discussion and will be brought back to council but include restructuring of the city’s inter-fund loans (already done) and elimination of the sales tax paid by the city for water use on its own properties (already done). Still on the chopping block is the reduction/elimination of retiree health subsidies; alternative service delivery to citizens; and adjustment (downward) of the city’s contingency fund.

The reduction or elimination of retiree health subsides is truly unconscionable. Many retirees are on fixed, monthly incomes (Social Security) and can ill afford to see their health premiums go even higher. Perhaps if it were proposed as beginning on July 1, 2014 for new retirees who understand that they will not be subsidized and can prepare for it, it could work. Alternative Service Delivery (elimination or privatization of services) should not include the Enterprise Departments of water, sewer or sanitation. These funds are not part of the General Fund deficit for they are stand-alone and rely upon the rate payers to bear the costs of those services. A reduction of those services will have no impact on the General Fund.

The concept of the Contingency Fund is more complex. What staff proposes is to rearrange the deck chairs. Historically, in Glendale, the Contingency Fund was pegged at 10% and all or part of it could be used for unexpected expenses that arose during the course of the Fiscal Year. It remained and often grew from year to year. Staff is proposing that Contingency be set at 5% and still to be used for unanticipated expenses. It will become a renewable line item in the budget that can be made larger or smaller. Now there is introduction of a new concept, Ending Fund Balance (EDF). The EDF would be the city’s savings account for purposes of demonstrating to the bond rating agencies that Glendale has a reserve other than Contingency. Staff wants the EDF to be pegged at 25% of the General Fund Operating Budget. That is an awful lot of money to come up with instantly. Yet that is part of staff’s plan. They want Glendale, in its worst fiscal crisis ever, to turn around instantly and mimic the practices of a Triple A rated city. The idea is sound but the instant execution is not. It is warranted that it took Glendale several years to dig itself into a hole and it stands to reason that it will take several years to dig its way out. There’s an old proverb, “Rome was not built in a day.” Glendale’s financial mess will take more than a day to right itself.

© Joyce Clark, 2014

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It all began when the Bidwill’s and the Arizona Sports and Tourism Authority (AZSTA) couldn’t find a home for their proposed football stadium. Sites were chosen and were either rejected by the voters of certain municipalities or their city councils or rejected by AZSTA and the Bidwills. Glendale was their last, best hope to make it happen. AZSTA and the Bidwills bought the land from the Pendergast family and the Rovey family. AZSTA and the Bidwills paid for the construction of the stadium. The Bidwill’s share of costs came from an NFL loan made at an incredibly low interest rate.

It was a rocky relationship from the start between Glendale and the Bidwills, in part because the Bidwills suffer from a grandiose sense of entitlement. They demanded various zoning concessions from the city that the city did not grant. So the Bidwills’ heartburn with Glendale started with the first time the city said, “No.” AZSTA and the Bidwills seem to forget that Glendale has some “skin in the game” having ponied up $35 million for infrastructure improvements in and around the stadium.

Glendale knew when the stadium came to town that the Super Bowl was part of the package. The thinking at that time was that Glendale would host its first Super Bowl, hoping to break even. Glendale embraced its hosting duties for the 2008 Super Bowl to make it the best ever. Judging from after-event comments, that is exactly what occurred. Kudos were bestowed on all partners: The Host Committee, AZSTA, the Bidwills and Glendale. Getting to the event and parking were painless thanks to the city’s Transportation Department. The weather was perfect thanks to God. The stadium was breathtakingly new and offered boundless amenities thanks to AZSTA and the Bidwills. Related NFL parties and events went off without a hitch thanks to the Host Committee. It was an unparalleled success.

There was one fly in the ointment – Glendale, the host city, lost money. Glendale had reserved over $2 million dollars for the event and spent over $2 million dollars (probably closer to $3 million) for public safety, transportation and traffic (helicopter rentals used to monitor traffic to the NFL Experience and on game day are not cheap), and sanitation (someone had to empty those pesky garbage cans every day). Those were just some of the costs associated with hosting. Be sure to add in the countless hours of staff time planning and preparing for the event.

Why didn’t Glendale make money? There are countless reasons. Some were that the city did not have the cache of Phoenix or Scottsdale or enough commercial amenities surrounding the site to cash in on. No one can deny that the rest of the state benefitted, from the Grand Canyon to Tucson. International and national visitors came to the state a week or better before the event or stayed for some time after the event. For some visitors to Arizona, it was a once in a lifetime experience and they made the most of their time here.

Is it any wonder why Glendale suffering a fiscal crisis (sports related debt) is asking for reimbursement this time around? It’s not a strange concept. The states of Texas and Florida already have systems in place for reimbursement of host cities. The first Super Bowl hosting was a test, a pilot project for Glendale. This time around it is not. I did not vote to support the bid for the 2015 Super Bowl until there was some replacement mechanism that could recompense Glendale for its hosting expenses.

Lately many of the ill-informed media have been dumping all over Mayor Weiers and Glendale for having the temerity to ask for such a mechanism. If they know the facts, they are ignoring them. Why would anyone volunteer to lose millions of dollars? Surely they must be aware that the entire state benefits from such an event. It just makes for good talky-talky but at the expense of public misinformation.

Michael Bidwill’s trashing of Glendale makes for great news also but does a disservice to everyone. If he thinks that will help to get Glendale’s hotels to cap their rates he is sadly mistaken. Those hotels are private businesses and cannot be made by Glendale to take an action that they prefer not to do. If the NCAA Final Four does not come here, thank Michael Bidwill for poisoning the atmosphere.

Let’s not leave the NFL out of this tirade. It has been reported that the NFL will earn $9 BILLION from the 2014 Super Bowl. They pay no tax on those earnings because they enjoy non-profit status granted to them by Congress. What a joke! If nothing else the NFL can surely afford the cost of making host cities whole. But it’s all about money, isn’t it? The NFL (read the football team owners who are the NFL) is not about to give up a penny. Greed is king. I am always reminded of seeing homes (mansions) with 28 bathrooms. Yet you can only use one at a time. When is enough money enough? Never, some will say.

If the NFL will not make host cities whole and there is no state mechanism to recompense host cities (other than Texas and Florida) then perhaps it is time for the host cities to form their own coalition. I have called for such action for years. If the cities got together, put some basic cost claims forward to the NFL and stuck together, the NFL would have to accede. Where would their event go?

One final word. After weeks of hype in anticipation of a super game instead we witnessed a super dud. It was disappointing to say the very least. The score was not even close. No one can, of course, control the outcome but one hopes that the scoring will be close to make the game entertaining. 43 to 8 is not entertaining. It is a blood bath. A few of the commercials were better than the game. Over 100 million tuned in but by the time it concluded you can be sure many of them had stopped watching.

My last informal poll on the question of the former Glendale City Attorney Craig Tindall’s questionable ethical behavior had 59% saying ‘Yes” his behavior was unethical to 41% saying “No.” My latest poll is to the left of this column.

© Joyce Clark, 2014

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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.

Recently the Glendale Star ran an article about the “great fire truck mess.” Here’s the link: http://www.glendalestar.com/news/article_43959c72-8cf1-11e3-ace9-0019bb2963f4.html .

In one of my recent blogs, “Choices…so many choices,” we learned the proposal to be ratified by council was to buy a new fire truck for more money ($484K) than was granted ($424K) for the purchase and was pulled from the agenda. The reason for its removal was due to public comment offered by two gentlemen representing Freightliner of Arizona who reported on the RFP process and gave examples of why it was flawed. The City Manager, Brenda Fischer, always on top of every issue, indicated that she wanted to learn more and it would either come back to council as presented or a new RFP would be conducted. The Star reported that Fischer would be issuing a new RFP. How’s that for a demonstration of Fischer’s being on top of the very issues approved by the City Manager to go before council? She ought to be embarrassed.

However, the more interesting part of the story is what happened AFTER the council meeting. Fire Chief Mark Burdick confronted the two men, Freightliner’s Attorney Evans and Freightliner’s General Manager, Tim Noeding.

Burdick told Noeding that he was “shocked” that Noeding went public with his complaints about the RFP process and Burdick thought it was “unfair” because Noeding’s “side of the story” got out publicly first. Noeding shot back with perhaps Burdick needed to look at his people and their level of performance in handling the RFP process.

Good for Mr. Noeding. Too often the Glendale system is to try to waylay those who have a grievance, schmooze with them privately and then send them packing – all the while, they leave scratching their heads, wondering what had happened. It is a time-honored Glendale strategy used to prevent any negative from becoming public.

It raises some rather interesting questions, however. Who is running the Glendale Fire Department? The Fire Chief or the Fire Union? For many years it was John Holland, President of the Glendale chapter of the Fire Union. He was the power broker and if anyone wanted anything done they went to him. Alas, Holland was under investigation after having been caught with his hand in the Union cookie jar. Strangely, but not unexpectedly, nothing ever came of that investigation. It seems to have been buried deep within the bowels of the Union, never to surface again after Holland went quietly into the night. Others have assumed Holland’s mantle and may have just as much power.

In one of my many conversations had with the Fire Chief over the years, when questioned about certain policies and practices, he would shrug and refer to some concession the Union had been granted that allowed the policy or practice.

In some ways Chief Burdick’s hands are tied, especially in his efforts to control the fire department budget. It has become more and more difficult as the Union continues to stave off questions about overtime, the use of 4-man trucks or the use of big, expensive trucks answering medical calls which make up nearly 80% of the department’s Calls for Service. If those are sacred cows then Burdick must get a handle on his departmental budget and make cuts in other areas. It’s time for Burdick to manage more effectively and just like the City Manager, be knowledgeable about his employees’ decisions and actions. He and the City Manager should not be the last to know but rather the very first to know.

In other news, congratulations to Jerry McCoy on his promotion to Executive Director of Communications and Marketing. It is well earned and well deserved. But wait, you say, isn’t that Julie Frisoni’s position? Well, yes it is but apparently not any longer. It’s the signal that Fischer is about to make Frisoni permanent as Assistant City Manager, despite the fact that Frisoni does not meet Human Resources defined qualifications for the position.  But that’s just a minor roadblock. Fischer can certainly order Jim Brown, Executive Director of Human Resources, to change or modify the qualifications for the position. Hmmm…I thought the City was removing all those pesky Executive Director titles. Keep in mind, Frisoni was part of the former City Manager Ed Beasley’s “inner circle.” She knows where all the bodies are buried and may have even helped to bury some. Yet when faced with ethical issues such as former City Attorney Craig Tindall’s alleged email solicitation on a city computer for tax deductible tuition donations for his son she said nary a word. What exactly are her ethical standards? After all, she probably advised Beasley on how to handle the Alma Carmichael debacle when it became public knowledge.

I haven’t even commented on the February 4, 2013 city council budget workshop or regular workshop yet. It will just have to wait for the next edition of the blog. Burdick’s show of outrage was just too good to pass up.

© Joyce Clark, 2014

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.