Header image alt text

Joyce Clark Unfiltered

For "the rest of the story"

It has been 17 years and 214 days since the city’s pledge to build the West Branch Library.

On July 24, 2015 at a special voting meeting the Glendale City Council unanimously passed Ordinance 2949 and the First Amendment to AMULA Final. With these actions the city and Ice Arizona agreed to dismiss all lawsuits and also settled the issue of the million dollars sitting around in a special escrow account as a result of the 2009 bankruptcy filing.

Before the Kumbaya vote Anthony LeBlanc, spokesperson for the ownership group said, “We’re not going to renegotiate…never, never, never.” Oops. The afternoon of the fateful vote in a radio interview with Roc & Manuch, LeBlanc was heard to say, “We haven’t been open with them (the city).”And, “We haven’t been good communicators.” And, “They’ve done well for the taxpayers. They’ve got a win.” When asked if Ice Arizona would consider buying the city’s arena, LeBlanc said about arena ownership, “That’s not the business we’re in.” Should we believe him in light of his long history of “erroneous” statements?

Councilmember Gary Sherwood, IceArizona’s staunch advocate, in an earlier, same day radio interview (July 24, 2015) with Roc & Manuch, said that he had publicly staked out a position that “he was not going to vote.” We can assume his action was to be a public display of disapproval for council’s treatment of his good friends, the IceArizona owners. In his traditional flip-flop fashion, he reversed himself with a little help from his friends. He revealed that the night before the vote “he had discussions with ownership” (presumably Anthony LeBlanc). His remark is interesting in and of itself for the only meeting council had prior to the vote was an executive session on July 20, 2015.  Did he share the conversations and results of that executive session with his good friend LeBlanc? Sherwood went on to say that “ownership wanted a 7-0 vote in support of the new deal.” Always willing to oblige his friends, Sherwood did a 180 and not only voted but voted in favor and made sure his pal, Councilmember Sammy Chavira did as well.

There has been considerable opining in the news media and on social media as to whether this is a good deal…for anybody. I contend that it is a good deal for Glendale if for no other reason than a $197 million dollar liability is gone…poof! That action should warm the hearts of the bond rating agencies. That figure represents the annual lease payments for the balance of the original lease management agreement.

The city gained in reducing the management fee to $6.5M from the original $15M annually. The actual language is: “10.1. Management Fee. Commencing on the Amendment Effective Date, and during the remainder of the Term, in consideration of the Arena Manager’s agreement to perform the management and other services set forth in this Agreement to pay all operating and maintenance costs associated with the Arena Facility (other than capital costs as provided herein), provided there is no breach by the Team Owner of the obligations under the Non-Relocation Agreement or a material breach by the Arena Manager of its obligations under this Agreement, the City shall pay to the Arena Manager, by wire transfer of immediately available funds to an account specified by the Arena Manager, the annual Management Fee in the amount of Six Million Five Hundred Thousand Dollars ($6, 500,000), paid in quarterly (on a three calendar month basis) installments in arrears on or before each October 1st, January 1st, April 1st and July 1st during the Term.” The city was losing an estimated $8+M a year under the original lease agreement even with the shared revenue it received. This management fee is budgeted within the city budget for Fiscal Year 2015-16.

The city also won two important concessions. It now has its own “out” clause with this agreement which ends in two years, in 2017 with recognition that “19. Termination Date means June 30, 2017.”  It now has the freedom to choose its own arena manager in a year’s time as stated, “46. Change of Manager. Notwithstanding what may otherwise be proved in this Agreement or in this Amendment, the City shall have the option to replace the Arena Manager at any time after June 30, 2016…” Everyone hopes the city will craft an RFP immediately and put it out on the street in a time frame appropriate to exercising that option.

The city achieved what can be considered as payback. IceArizona will no longer use former City Attorney Craig Tindall or former Assistant City Manager Julie Frisoni in any capacity including as a consultant. It is in #4 of the Settlement Agreement which states, “No Other City Employee Involved with Arena Agreement. The Parties represent and warrant that, as of the Effective Date, to the best of their individual and collective knowledge, information, and belief, no other former employees of the City, other than Craig Tindall or Julie Frisoni, have become consultants to or employees of IceArizona, in any capacity, since July 8, 2013. Ice Arizona represents and warrants that neither Tindall nor Frisoni has, in any way and to any extent, no matter how substantial or insubstantial, been involved in initiating, negotiating, creating, drafting, or securing the First Amendment. In reliance on these representations and warranties and those in Section 6, the City, City Council, City Manager, and City Attorney, collectively and individually, represent and warrant that they will never in the future seek to cancel or void the Arena Agreement of the First Amendment based o the involvement of Tindall or Frisoni, no matter how substantial or insubstantial, in initiating, negotiating, crating, drafting, or securing the Arena Agreement or the First Amendment on behalf of Glendale, so long as Tindall and Frisoni are not employed or retained as a consultant by IceArizona or any of its affiliates, divisions, parent entities, or subsidiaries.” The language is quite specific. That is just plain Karma for Tindall and Frisoni.

Did IceArizona get anything out of the deal? It stopped a lawsuit in which ultimately the city would have prevailed. Note that the new deal contains a lot of verbiage enjoining the city from suing IceArizona, ever, for any reason, regarding Tindall and Frisoni. The major gain was that it bought IceArizona time…time to decide its future. If the owners cannot put a decent team on the ice this year their future is bleak and they know it. It’s not a matter of distance that fans must travel to a game. That rationale has been over used. When teams win people will eagerly travel long distances to watch the winner. A team that is a contender also fills seats in suites and attracts more expensive advertising dollars…the lifeblood of any team. Each extra playoff game earns in the neighborhood of a million dollars and can spell the difference between a bottom line in the black and a bottom line in the red.

Another important issue finally resolved is that of distribution of the bankruptcy Operating Reserve Account as follows: “10. The Parties acknowledge and understand that in the Bankruptcy Settlement, subject to approval by the Court, the Bankruptcy Lawsuit (the “Bankruptcy Court”), the Operating Reserve Account shall be distributed as follows: $350,000 to the City, $10,000 to the David Reaves, Chapter 7 Trustee of the Arena Management Group, L.L.C., and $640,000 to Ice Arizona.”

In the same radio interviews, Sherwood stated that he wants “to see a new contract (with IceArizona) in 6 to 9 months, by April of 2016.”  LeBlanc stated IceArizona “wants a contract extension immediately” to bring “certainty.” Obviously it is an option both parties will need to pursue. Let us hope they can be successful in crafting a lease extension that is not build on the backs of Glendale’s taxpayers. No one can object to a lease agreement that is fair and equitable.

Be advised it doesn’t matter what the action or situation is, municipal governments do not move quickly. While an immediate contract extension is IceArizona’s goal, the caution is to not become frustrated if the action is not completed quickly. I learned this lesson the hard way. When I first joined city council I had ideas for projects in my district. I mistakenly thought they could be accomplished instantly. Not so. I became satisfied if a project could be completed within a year. It’s the very nature of government. All action is slow, overly deliberate, and far more complicated than it often needs to be.

Everyone appears to be relieved the issue is resolved for now. Let’s hope this positive action leads to further positive outcomes for both parties.

© 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 210 days since the city’s pledge to build the West Branch Library.

Nearly all major battles we face seem to revolve around either love or money. In the case of the Coyotes vs. Glendale it’s definitely money. Before I post a blog on the current deal between these entities it’s important to understand the effects of the biggest driver — money.

Westgate and its sales tax revenue is an important component. It cannot be denied that the majority driver of retail sales tax revenue in Westgate comes from Tanger Outlets. Before Tanger’s opening in November of 2012 retail sales tax revenue was under a million dollars a year. Tanger, when it opened, was projected to earn $2M in sales tax revenue and in fact, from the start, has generated closer to the $2.5M mark.

As you can see from the chart below in calendar years 2013 and 2014 retail sales tax revenue was over $3.5M and almost all of it is attributable to Tanger. In October of 2014 Tanger expanded and the city can now expect an estimated $4.5M in retail sales tax revenue in 2015. Restaurant/Bar sales tax revenue has also increased over time and can be related to football games, hockey games and concerts held at the University of Phoenix Stadium and the Gila River Arena. This component is also attributable to the opening of new restaurants in Westgate. This sales tax revenue has grown as well and is estimated to earn some $3M. “Other” sales tax revenue is composed of bed tax, AZSTA stadium city sales tax, licenses & permits, etc. It is estimated to earn about $5M in 2015.

In 2015 estimated sales tax revenue from Westgate looks like this: Retail — $4 to $4.5M; Restaurant/Bar — $3 to $3.5M; and “Other” — $4.5 to $5M.

Westgate sales tax

The argument often used by Coyotes’ supporters is that the spillover effect from 42 nights of hockey games is essential to Westgate’s restaurants and bars survival and to the city. How much of that spillover is from 70,000 fans attending each of 10 football games? Admittedly it is substantial and could account for anywhere from 1/3 to ½ of the sales tax revenue generated from restaurants and bars annually.

The point is that Westgate has grown despite all of the drama and turmoil of the Coyotes and is strong enough to survive with or without them. If one looks at all of the factors that determine annual sales tax generation at Westgate the Coyotes (from hotel stays and restaurants/bars) are estimated at driving about $2M a year out of a total estimated annual sales tax revenue of a low of $11.5M to a high of $13M.

As long as we are on the subject of money there is another factor to consider. Many Coyotes fans are hoping that the Coyotes will move to downtown Phoenix or a new arena at Talking Stick. Dan Bickley in a recent July 26, 2015 Arizona Republic story entitled Coyotes not out of the woods – or Glendale – just yet said, Sarver says his Suns pay $23 million a year just to play at US Airways Center: $12 million in debt service, $8 million in arena management costs and $3 million in rent. A new arena capable of housing a NBA team and a NHL franchise starts at $500 million, and that’s being conservative.” Kudos to Robert Sarver for publicly offering some expense figures (no revenue figures, mind you). That’s more than anyone has seen from the Coyotes. Any public figures associated with the Coyotes have been minimized or denied by Anthony LeBlanc, an owner and visible spokesperson for the ownership group.

The question for the Coyotes becomes can they afford to move anywhere? Sarver is not in the charity business and I suspect that the owners of Talking Stick are not either. All bets are off if the Coyotes move out of Arizona. Is there an entity out there willing to pay the Coyotes to play in a newly constructed arena? Who knows? The Coyotes will have to pay to play anywhere else in Arizona and as long as they continue to suffer losses of an undetermined amount their options are very limited. No one is offering any love to the Coyotes these days and their entire future is being driven by only one thing – money.

© 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 208 days since the city’s pledge to build the West Branch Library.

Please note: It seems that when one takes a short vacation all hell breaks loose. Glendale and IceArizona have resolved their differences for now. I will be posting a future blog on that event. In the meantime, I noted that the Glendale Star reported that it had attempted to contact me for a comment for their story. Thank goodness for digital phones. Having checked all calls for the past several weeks I can confirm that I received no phone call from the Glendale Star.

On July 22, 2015 the Glendale Police Department issued a press release confirming that Commander Andre Anderson has been hired as Ferguson, Missouri’s Interim Police Chief. In my blog entitled Beasley may have company in Ferguson dated June 25, 2015 I announced that it was possible that he would take the job as well as issues that both Beasley (hired as Interim City Manager) and Anderson could face.

Several nagging questions remain. I had heard that Anderson was reluctant to take the job because of the pay disparity between Glendale and Ferguson. Ferguson is a much smaller community, about 1/10 the size of Glendale. I had also heard that that Glendale might make up the disparity in pay between Anderson’s current salary and what he was offered in Ferguson. Would Glendale do such a thing? The rational answer is ‘no’ but we have certainly seen Glendale do other irrational acts. It doesn’t seem that it would be legal. So…the question for Glendale officials is this…is Glendale subsidizing Anderson’s pay while he works for Ferguson? It is a question that deserves a public answer from Glendale because Ferguson isn’t telling.

Anderson is on a six month loan from Glendale. He will be using up all of his vacation time and when that runs out, he will be on unpaid leave from Glendale. However, that explanation doesn’t answer the question of whether Glendale is subsidizing Anderson’s pay.

Another question…what is the city’s reasoning in allowing Anderson to serve as a paid administrator in Ferguson? Was it a favor to Glendale’s former City Manager Ed Beasley? It’s eerily similar to Beasley’s allowing Alma Carmicle, Glendale’s former HR Director, to telecommute from Mississippi.

The Glendale Police Department has, in a fashion, loaned personnel to various state task forces. They remain on the Glendale payroll and their salaries are not subsidized. Although it may have happened I do not recollect in Glendale’s history a Commander taking leave to serve as a Police Chief or in the administration of another municipality. More answers should be provided by the city than has been offered to date. Come on Glendale, come clean.

© 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.

On Wednesday, July 15, 2015 Darrell Jackson, for the Glendale Star, posted a story online in which he reported two sources (not councilmembers but apparently city administrative staff) have confirmed my speculation that the Monday, July 13, 2015 city council executive session was to discuss an offer made by the Arizona Coyotes. Not a bad guess for a former councilmember.

It raises more questions other than answering only one — what was the subject of the e session? If Jackson’s sources are correct the Arizona Coyotes had offered to drop their management fee to $8M for the next 3 years.

Without knowing any more details of the purported offer, the first thought is, don’t the owners of the Coyotes realize they are virtually confirming they plan to exercise the opt-out clause in 3 years? The second thought is city council is absolutely convinced they have a solid legal case against the Coyotes. You can be sure we have not seen all of the city’s cards when it comes to the 2 former city employees, Craig Tindall and Julie Frisoni. I suspect we will not find out how much more there is to know until the discovery phase of the trial — which seems more certain to occur than ever.

Offering to pay a lesser management fee while keeping the opt-out clause does not sound like much of a win-win deal. The city pays the team $8M a year to play in its arena for the next 3 years and then the team leaves? Again, who is going to pay the Coyotes $15M or $8M a year to play in their venue? You can be sure the City of Phoenix and Talking Stick won’t. They have management companies. No, the only thing they will expect is a hefty rental payment from the Coyotes. It seems as if the handwriting is on the wall. No one, other than gullible Glendale has been willing to pay them to play and now, even Glendale has decided that it’s not such a great idea.

If the Coyotes owners are as committed to staying as they claim they are, the first concession they should have made to the city was to remove the opt-out clause but they didn’t offer that carrot. Why? Because they plan on exercising the provision in 3 years. For all those die-hard Coyotes fans out there, what will it take to make you believe that it is quite possible that the Coyotes are not here for the long haul, despite what the sometimes dubious truth teller Anthony LeBlanc has been saying? You know which Anthony LeBlanc I’m referring to. It’s the one who denied Andrew Barroway’s purchase of 51% of the team only to retract his denial. Yes, I realize Barroway is no longer the majority owner but he was for a brief time and LeBlanc originally denied it when it was first reported.

Jackson reported that several administrative staff would like to see arena management separate from the team. At this point in time, that seems to be an idea worth embracing. Hang on folks. This is a new chapter of Coyotes history, barely written and I suspect there is much, much more to come before this chapter is completed.

© 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 195 days since the city’s pledge to build the West Branch Library.

Recently ‘thevintageguy,’ one of the regular commenters to my blog posts, offered an interesting idea. He calculated that if every hockey ticket for every game had a surcharge of $24 it would generate $15M annually in revenue. If that surcharge were applied IceArizona would not need the City of Glendale to pay $15M a year for a management fee.

I decided to explore that idea but first, some history. The city owned arena opened in December of 2003. Let me remind you there was no arena management fee that the city had to pay. Steve Ellman led a group of investors who bought the Coyotes. Ellman may be many things to many people but he took immense pride in the arena, the Coyotes and the events he booked. Back then concerts were far more frequent. Bette Midler, Britney Spears, Elton John and U2, to name just a few performers, played at the arena in its early years. During the years of his ownership of the team the Arizona Sting (now defunct) also played all of its games at the arena. While the Arizona Sting was probably not a money maker during the years of its existence from 2003-07, each year it successfully increased its fan base. It certainly was not a deterrent to Jerry Moyes’ acquisition of Ellman’s interests.

Ellman realized how important it was to his bottom line to keep the arena busy all year long. Ellman’s downfall was his inability to develop a substantial amount of commercial and retail surrounding the arena quickly enough. To focus on that aspect of his business he sold his interest in the hockey team to Jerry Moyes. Then the national recession hit and he was unable to hold on to his interests within Westgate.

Under Moyes there was no arena management fee that the city had to pay. Moyes seemed not to be as committed to the health of the team and its bottom line as Ellman had been. Unfortunately Moyes ran the team’s finances into the ground. Apparently he diverted team revenue to his other businesses and subsidiaries. By 2009, Moyes asked the city to begin payment of a management fee of $12M a year. The city refused. Moyes declared team bankruptcy all the while working a secret deal with Jim Balsillie to buy the team out of bankruptcy. The court stopped that scheme and the NHL assumed control of the team. The NHL demanded an annual management fee of $25M knowing that the city needed to buy time until a new team owner was secured. It was precedent setting. From that point forward any potential owner of the team had a green light to require that the city pay a management fee.

In 2013, IceArizona bought the team with the NHL’s blessing and so the management fee scheme was retained with the city paying $15M annually. The IA management agreement has a revenue sharing component but the revenues generated annually and paid to the city have been approximately $8M short every year in covering the annual $15M payment.

Recently the city council voted to cancel the contract with IceArizona (IA) alleging a conflict of interest by two former city employees. IA immediately went to court and obtained a Temporary Restraining Order (TRO). The judge required the city to make its quarterly payment of $3.75M on July 1, 2015 to pay for services already rendered and the city has done so. The court also required IA to post a bond of $1M and IA has done so. On July 29, 2015 both parties will be back in court and the judge will make a determination if the TRO should become permanent pending the outcome of the suit regarding the contract cancellation.

On Monday, July 13, 2015, the Glendale city council met in executive session. It is my strong belief that the subject of that meeting was the litigation between IA and the city. I suspect IA made an offer amending the existing contract and their offer was rejected. It appears as if the city council is convinced that its allegations are solid and provable in a court of law. Just think about it. If there had been a desire on the part of council to accept an offer from IA there would have been a press release issued after executive session. That has not occurred.

Back to the ‘vintageguy’s’ idea. Basic research reveals the following annual attendance figures for the Coyotes, courtesy of hockeyDB.com at http://www.hockeydb.com/nhl-attendance/att_graph.php?tmi=7450 .

“Phoenix Coyotes Yearly Attendance Graph. This is a graph of the home attendance of the Phoenix Coyotes, a hockey team playing in the National Hockey League from 1996 to 2015. Attendance is based on numbers from a team or league, either released as an official yearly per-game average figure, or compiled into an average from individual boxscore attendance. In some cases when boxscore attendance is unavailable for a small number of games, the attendance is computed omitting the missing games and annotated as approximate. Clicking on a season’s bar will bring you to a graph of all teams in the league.”

The average attendance figure for the Coyotes for the last 5 years is 13,133. Multiply that figure by 41 games a year and the average total attendance for a season of 41 games is 538,453. If you divide $15M (annual city payment of management fee) by 538,453 each ticket for each and every game would require an additional $27.85. If a hockey fan were to buy a ticket for each of the 41 games per year the additional annual amount he/she would pay would be $1,141.85. What do all of these numbers mean? If hockey fans paid more for every ticket IceArizona would not need the $15M a year from the city. Now that sounds like a plan.

Let’s look at it another way. Each year even with IA’s revenue sharing the city is in deficit for the $15M annual payment by about $8M a year. If revenue sharing were to remain and the same ticket increase scheme were used to cover the $8M a year deficit, each ticket would need to be increased by $14.85 which comes to a total increase for a fan attending all 41 games of $608.85 a year.

I believe my figures are correct but even if they are off a bit don’t get bogged down in the numbers. Instead consider the concept. If fans were charged more per ticket per game with or without IA revenue sharing there would be no need for the city to pay an annual management fee of $15M. That would surely solve the city’s annual Coyotes related deficit. Whether it is $27.85 or $14.85 per ticket per game the sixty four dollar question is are Coyotes fans willing to pay either extra amount to keep the team in Glendale? Is it possible for them to redirect their negative anger to a more positive action – that of paying more to keep their team?

© 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 193 days since the city’s pledge to build the West Branch Library.

I am about to do a commercial. No, not for Willie Wonka but for John Oliver. Who is he, do you say? Don’t feel dumb. I didn’t know who he is either. He is a comedian on HBO with a show entitled “Last Week Tonight.” Here is the link to one of his latest efforts: Last Week Tonight with John Oliver: Stadiums (HBO) – YouTube .

I want to thank ‘Me’ and a friend, both of whom sent me the link to his monologue on sports stadiums. He cracked me up and if you watch you may share my opinion. I’m going to watch previous episodes and make sure I watch from now on.

He may be a comedian but he and his production team do a lot of research and interspersed among the jokes are big, fat, fact bombs. He described today’s stadiums as thFYHUH64Abeing designed by “a coked up Willy Wonka” as he pointed out that the Marlins have an aquarium behind home plate and Dallas has a suspended swimming pool within its stadium. He said that in the past 20 years $12 billion dollars has been spent on 51 stadiums in the United States. He alluded to the often used statement by team owners that they cannot afford to build a stadium on their dime. Yet they will not share their financial books to provide a modicum of truth to the statement. He went on to say that owners monetize every part of the stadium and do not revenue share with taxpayers who foot the bill for constructing these stadiums. These owners keep the revenue on such items as naming rights, concession sales tax and luxury suite sales.

John Oliver even introduced Glendale into the picture at the 13 minute, 59 second mark. He highlighted that Glendale had cancelled their arena contract and the mayor and councilmembers have been virtually pilloried for doing so by showing the segment where a Coyotes fan tazed the mayor for a charity event.

Oliver is funny and he manages to use his brand of comedy to teach some basic facts about his topic of choice. Please join me in giving this guy a spin, kick his tires and check under his hood. We might learn something new in the process.

 © 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.

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 191 days since the city’s pledge to build the West Branch Library.

A political committee, registered in Glendale, Glendale First! is sponsoring the recall of up to 4 June30-GlendaleFirst-Amendedcurrent Glendale city councilmembers: Vice Mayor Hugh, Councilmember Turner and Councilmember Tolmachoff (they have yet to pull a recall packet on Councilmember Aldama). These 4 councilmembers, along with Mayor Jerry Weiers, voted to cancel the Glendale arena’s lease management agreement with IceArizona.

On their website they say, “It is the opinion of Glendale First! that the recent actions of the Glendale City Council regarding their vote to cancel the arena management agreement with IceArizona (the Arizona Coyotes) was hasty, ill-conceived, politically motivated, and fiscally irresponsible.” They are angry about council’s action and for them it’s payback time. Revenge is a heck of a reason to mount recall elections. This is reason #1 and it is the major reason.

Obviously reason #1 for the recalls will not play well with Glendale’s residents and so, reason #2 is Glendale First’s accusation that these councilmembers did not support public safety. By public safety, don’t be confused – Glendale First! is referring exclusively to the Glendale Fire Department and more specifically the Glendale chapter of the fire union.

The Glendale police unions made it clear that they did not share Glendale First’s allegation. Justin Harris, president of the Glendale Law Enforcement Association, spoke at a recent city council meeting and recognized and thanked the city council for its continuing support of public safety. Then the Glendale Law Enforcement Association and the Glendale Fraternal Order of Police ran an ad publicly supporting the councilmembers under threat of Glendale First’s recall effort. As an aside, another ad was taken out by all of the opponents who ran against the sitting councilmembers in the last election. Their ad also supported these members of the city council and their vote to cancel the contract. Obviously the men and women of the Glendale Police Department did not support the allegations of Glendale First! – but the Glendale Fire Union did.

Make no mistake, the fire union wants more money and appears to have partnered with Glendale First! to try to make that happen. Their argument for more money rests on their claim of deteriorating fire department response times. Yet the former Glendale Fire Chief publicly stated the department’s response times have remained constant over the past five years. The fire department is accredited and their response time is one of the major criterions for successfully acquiring that accreditation.

The recent history of the fire department demonstrates the fire union’s tremenous influence within the department. During former Mayor Scruggs’ tenure she allied herself with John Holland, former president of the local fire union chapter. Because of her support of Holland and his union Glendale’s fire chiefs were reluctant to oppose the union’s desires and demands. The union grew in power and strength until today it virtually runs the fire department. It will be extremely difficult if not downright impossible for any Fire Chief, including Interim Fire Chief DeChant, to put the fire union genie back in the bottle. Yet that is what must be done to get the fire department back on track placing the needs of its citizens first.

So reason #2 of non support by council of public safety didn’t fly either. That led to reason #3 and their newest allegation, Glendale First! feels the City Council acted inappropriately when it reclassified the inter-fund advances used to fund payments to the NHL, essentially removing that nearly $40M liability from the City balance sheet with the stroke of a pen and a vote for the budget. In effect, what had been a loan from several enterprise funds was made to disappear with no requirement for repayment.”

Has that money and the promise to repay the Enterprise Funds disappeared as Glendale First! contends? No, it has not. Here is the real story as Paul Harvey would say. In 2011 and 2012 in an effort to keep the Coyotes in Glendale, city council agreed to the NHL demand of a payment of $25 million a year. Funds to make the NHL payments were borrowed from the Enterprise Funds and were recorded on Glendale’s ledger as long-term borrowing and became new debt owed to: Water & Sewer, Landfill and Sanitation. It added even more debt to Glendale’s bottom line and was recognized as such by the bond rating companies. They considered this debt as another long term liability for the city.

The action city council took was to approve renaming this debt from the term “inter-fund advance” to “inter–fund transfer.” It’s no more than an accounting trick. By renaming this debt it had the accounting effect of removing it as a debt (even though it still exists as a debt) which in turn, satisfied the bond rating companies and provided them with a rationale to raise Glendale’s bond rating profile. They did not dismiss their obligation to pay this debt.

Is the debt still there and is it being paid off? You bet it is. At a recent April, 2015 workshop Councilmember Tolmachoff asked to bring forward a resolution to make the General Fund FY 2015-16 Inter fund transfer July 11, 2015inter-fund transfers to the Enterprise Funds part of the budget process each year. It resulted in a City council approved Resolution 4943 New Series on May 26, 2015 making the inter-fund transfers to the Enterprise Funds permanent. Each year the city council will decide what the monetary amount of the inter-fund transfer to the Enterprise Funds will be. This Fiscal Year, 2015-16, the amount of the inter-fund transfer to the Enterprise Funds approved by the city council located on page iv within this year’s budget is in the amount of $600,000.

Glendale First’s reason #3 against these councilmembers which was that they had made the loan from the Enterprise Funds vanish is simply not accurate. The money did not disappear nor did the city’s commitment to repay the Enterprise Funds. It appears as if Glendale First! will have to get creative and come up with a new reason for recall of the councilmembers.

We can strike Glendale First’s reason #2 of council’s non support of public safety.

We can strike Glendale First’s reason #3 of council’s action to make money disappear.

That leaves Glendale First! with only publicly stated reason #1 left – the council cancelled the Coyotes contract.

© 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.

Merged

It has been 17 years and 182 days since the city’s pledge to build the West Branch Library.

Is the current recall effort by Glendale First! justified? It depends. If you are an avid hockey fan it is. Glendale First! is sponsoring two recently formed political committees, Recall Bart Turner and Recall Lauren Tolmachoff. The Recall Lauren Tolmachoff Committee is being led by Bill and Jennifer Eikost, Cholla district residents. I know them personally. They are friends and remain as friends even though I vehemently disagree with their current action. The Recall Bart Turner Committee is being led by Ben Shroyer and Paul Miller, Barrell district residents. All of these folks are not only hockey fans but some of them are season ticket holders. There is nothing wrong with that. However their current actions need to be viewed in the context of keeping hockey in Glendale’s arena by any manner and at any cost.

Glendale First! has had little success so far seeking individuals from the Cactus and Ocotillo districts to form political committees to recall Vice Mayor Ian Hugh and Councilmember Aldama as well. These districts tend to have lower socio-economic demographics and Glendale service cuts are viewed as being caused by the expense of the hockey lease contract.

This avid hockey fan group is angry with a city council that voted 5-2 to cancel a contract that requires payment of $15M annually as part of a lease management agreement for Glendale’s arena with IceArizona. But mounting a recall because they are mad about the contract cancellation won’t get them very far in Glendale as a majority of Glendale’s residents support the action. Strategically they needed another reason for the recall. What better diversion than to conveniently claim mismanagement of Glendale’s revenues by the mayor and only the 4 councilmembers that voted to cancel the contract.

So what exactly is the basis for Glendale First’s! allegation of council fiscal mismanagement? We have to go back a bit. The state legislature passed SB 1609 which made substantial changes to the Public Safety Public Retirement System (PSPRS) as it went into effect in June of 2011. Subsequently SB 1609 was challenged in Superior Court with a ruling in January of 2015 rolling back specific provisions within SB1609. The result is that Glendale (as well as all other participating cities) can expect additional expense per year to the PSPRC of an estimated $4 million (amount varies by city) and it takes effect in Fiscal Year 2016-17.

There were two options available to the city to deal with the increased expense to the PSPRS. thNM5RBIVGOne option was to pay as little as possible into the fund initially but it would require higher contributions in future years. The other option was to bite the bullet, add an additional $3.5 million as Glendale’s payment in Fiscal Year 2015-16. This would allow Glendale to increase its fund status (put more money in its PSPRC bank) and result in lower annual contributions in future years. Council’s policy decision was to choose the option of putting $3.5 million into the fund now. It was a prudent decision. It resulted in $3.5 million of General Fund dollars going to shore up Glendale’s PSPRC account.

Glendale First!, aided and abetted by the Glendale fire union, then accused the city council of mismanagement by not using that $3.5M of General Fund revenues for public safety. Apparently they don’t care about the city’s bond ratings and the fact that the bond agencies base part of their ratings on the cushion (contingency) a city has in reserve.

The fire union was not happy with the council’s decision for it wanted the $3.5 million dollars allocated to the fire department now. Hence we saw the media stories planted by the fire union claiming that its response times were alarming and a threat to public safety equal to that of a nuclear bomb. Keep in mind fire response times according to newly retired Fire Chief Burdick have remained at the same level over the past 5 years. The unacknowledged part of Glendale fire’s problem is that it is responding to more uncompensated calls outside of the city than ever before due to automatic aid. Therefore the closer Glendale fire units are not available partly resulting in extended response times. ( See earlier Automatic Aid, Parts 1-3 blogs)

The fire union and Glendale First! seem to have joined forces once again. They have a history of having worked together on previous Glendale issues. They worked together to insure the passage and retention of the temporary sales tax (now permanent).

This is from a former edition of the Glendale First! website: “Glendale First! is a grassroots citizen action group that was originally formed in 2012 as a political action committee in opposition to a referendum (R-12-01) that would have resulted in the Phoenix Coyotes leaving Glendale.” It went on to say, “Now that a long term arena management agreement is in place and the future of Westgate and the Coyotes is assured, it’s time to expand our efforts in Glendale. One can clearly see that Glendale First’s! agenda is in keeping the Coyotes in Glendale.

The concerted efforts of Glendale First! were instrumental in defeating three referendums aimed at disallowing arena management use agreements between the City of Glendale and various parties. We were also deeply involved in opposition of the Proposition 457 ballot measure.”

The agenda of keeping hockey in Glendale cost money. It appears that Bea Wyatt and her partner, George Fallar, expended as much as $11,000 of their personal funds, over time, to keep hockey in Glendale.

Despite those who are on the paperwork for each recall committee the two most visible spokespersons for this effort have been Bea Wyatt and Larry Feiner. Both are principals in thethN2BQ31YA Glendale First! organization and in the Desert Hockey Development organization. Both have been quoted in the media and have participated in radio interviews. They are now public figures and as public figures if there are skeletons in either person’s closet they are sure to be discovered as in the case of Larry Feiner.

Mismanagement of Glendale’s money? I’m sure Mr. Feiner has heard the old adage, “people who live in glass houses shouldn’t throw stones.” Because when it comes to mismanagement of money I’m not certain he is a position to throw stones. Mr. Feiner’s financial track record isn’t one that any person or institution should emulate.

I received an email recently advising me to go to this site. To my surprise this is what I found following this link: http://recorder.maricopa.gov/recdocdata/GetRecDataPaging.aspx?biz1=&biz2=&fn1=Lawrence&mn1=&ln1=Feiner&fn2=&mn2=&ln2=&begdt=1/1/1947&enddt=6/30/2015&doc1=&doc2=&doc3=&doc4=&doc5=   Mr. Feiner owed property taxes for the years 2006 – 2010 in the amount of $11,041.54. Those taxes were recorded as paid by the Maricopa County Recorder and the property liens released on March 3, 2011.

It’s a little different with Mr. Feiner’s federal income taxes however. Apparently he owes Uncle Sam $169,072.70 and there is no record of payment filed as of this date available on the Maricopa County Recorder’s website. Perhaps Mr. Feiner was not Glendale First’s! finest choice as a spokesperson to allege mismanagement of money.

On the same former edition of Glendale First’s! website it goes on to say, “Glendale First! and it’s members remain extremely active in the community, including founding the Desert Hockey Development organization pledged to give back to Glendale while growing the sport of hockey.”

“We are planning a series of fundraising events to, hopefully, retire the debt the committee incurred during the successful opposition to all of the anti-Coyotes referendums. We are proud to be a partner of Desert hockey Development in their inaugural Grow The Game Classic golf tournament to be held June 14, in Glendale, at The Legend at Arrowhead.”

One may assume that the debt the committee incurred in opposition to anti-Coyote efforts thW4CCRYSMwas in part, an estimated $11,000 personally spent by Bea Wyatt and George Fallar. It may be fair to ask how much of the money raised from this golf tournament went to reimburse Fallar and Wyatt. If they did receive reimbursement from a golf tournament primarily publicized as a fund raising event for Desert Hockey Development didn’t they, in essence, do the very same thing that Bea Wyatt has accused the 2 councilmembers under threat of recall of doing? Instead of using all of the funds raised for Desert Hockey from the golf tournament was part of that money used to retire previous debts including that of George Fallar and Bea Wyatt? Are we witnesses of the case of the pots (Feiner and Wyatt) calling the kettle (councilmembers) black??

 

© 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.

If you are a Glendale resident who follows my blog and if you have family members, friends, acquaintances or neighbors who would benefit from knowing what is happening in our community please take a moment to send them a link to my site: https://joyceclarkunfiltered.com . Thank you.

The concept of automatic aid was discussed in Part 1 of this blog. In Part 2, reform issues related to automatic aid were identified. In this part, Part 3, we’ll look at the issue of ambulance service and the demands on public safety of further future annexations by Glendale.

Ambulance service is currently provided in Glendale by Southwest Ambulance (SW), a subsidiary of Rural Metro Corporation, a national company. Sterling Fluharty of the June 2, 2015 edition of the Glendale Star has a good explanation of the relationship between the city and SW Ambulance. Here is the link: http://www.glendalestar.com/news/article_2edd3a9e-098a-11e5-9695-a7b1941abca4.html . It’s a “he said, she said” kind of fight between the city and SW. Each claims the other owes it money. However, one has every right to wonder if the city is dragging its feet in the negotiation of a new contract with SW while it is at the same time securing its own Certificate of Necessity (CON) with the Arizona Health Department. A CON allows an entity to provide ambulance and associated medical services subject to the requirements imposed by the Arizona Health Department. There is another provider available, American Medical Response (AMR), who has just been awarded a Certificate of Necessity (CON) for all of Maricopa County by the Arizona Health Department.

Glendale Fire Chief Mark Burdick in a February 3, 2015 presentation to city council said, “In 2011, AMR proposed replacing the fire department as a primary emergency medical service provider in Dallas, Cincinnati, and Los Angeles, which forced city councils to choose between the fire department and AMR. Their proposal included removing paramedics from fire trucks while utilizing the fire department units to respond and deliver primary service including patient extrication, treatment, and packaging, while the ambulance would only transport and collect all revenue. This proposal places a majority of the cost on the local government, while allowing the ambulance company to collect all profit.” Since he made those remarks Dallas and Los Angeles have contracted with AMR and Cincinnati has not.

City council would be well served to start over and reissue a Request for Service for ambulance service provision.  It is expected that the city would receive bids from Southwest Ambulance, Rural Metro, Phoenix Medical Transport and American Medical Response. After the bids are received staff should present to council the cost implications of all bids to provide ambulance service as well as the investment and on-going costs associated with the city establishing its own ambulance service. The estimated initial start up costs for the city fire department to provide ambulance service would be approximately $1.6 million dollars to cover the purchase of 4 new ambulances at $210,000 each and $760,000 in personnel costs…and that’s just the first year. If staff claims that the cost of city provided ambulance service will pay for itself – council beware. If I had a dollar for every time I heard that claim from staff I would be very rich indeed. Council should then make the decision based upon what provider is both cost effective and efficient for the residents of Glendale. At least ambulance service is not covered by automatic aid so Glendale will not be sending its ambulance service out of town.

Annexation of land to the west of the Loop 101 presents another set of issues for the city regarding public safety. The city’s current annexation policy requires that the entity seeking annexation secure its own water and sewer service from local providers other than the city. The city does not have the necessary water and sewer infrastructure to accommodate new annexations. While that is an excellent solution for the utility issue provision, police and fire provision will be an issue – a costly issue.

There are 3 possible options for police service: 1. Traditional service which would include the capital cost of building a Westside substation; 2. Contract with the Maricopa County Sheriff’s Office which does not require any capital construction costs or 3. Contract with an alternative service provider which also does not require any capital construction costs.

There are 3 options for fire service as well: 1. Create a county island fire district; 2. Traditional service which would include the capital cost of building an additional fire station; or 3. Contract with an alternative service provider such as Rural Metro which does not require any capital construction costs. Perhaps, just perhaps, some of the inequity in fire emergency response (not ambulance service) would be mitigated if other, closer jurisdictions ended up responding to newly annexed areas. City council must consider the cost implications of annexing more land into Glendale until such time as Glendale’s finances can accommodate the additional costs.

The bottom line is these issues impact the public’s health and safety. Council is mandated to look at this issue very carefully while considering the cost to taxpayers. Sometimes we want a Cadillac when a Ford will do.

© 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.