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Joyce Clark Unfiltered

For "the rest of the story"

It has been 17 years and 96 days since the city’s pledge to build the West Branch Library.

On March 25, 2015 the Glendale Star ran a story on the elimination of the city’s General Fund debt payable to the city’s Enterprise Funds (water, sewer, sanitation and landfill). Here is the link:  http://www.glendalestar.com/news/article_4fd7f4dc-d181-11e4-b56b-93c81bbb5cc5.html .

In an effort to buy additional time to secure a buyer for the NHL Coyotes who would pledge to keep the team at Glendale’s Gila River Arena, a previous city council approved borrowing $15 million from the city’s water and sewer funds, $40 million from its landfill fund and $5 million from its sanitation fund. The revenue was used to pay the NHL to manage the arena for two years while the process of finding a team buyer continued. At the time council also approved a repayment plan, using General Fund revenue to pay the Enterprise Funds back with interest. It was a solemn pledge and a commitment that the previous council never anticipated future councils would renege upon. The unthinkable is about to occur. At a recent workshop following the recommendation of Tom Duensing, Glendale’s Finance Director, a majority of council plans to do exactly that.

When Councilmember Tolmachoff asked what would be the consequences of such an action, Duensing replied, “You could do it a number of ways: you could do rate increases, you could defer maintenance, you could cut your operating costs.”

There were questions unasked that still demand answers:

  • While this action might make the general fund balance sheet look better, what impact does it have on the balance sheets of water and sewer, the landfill, and sanitation?
  • By recording the former “loan” to a fund transfer, doesn’t it reduce the assets on the balance sheets of those funds?
  • How does the reduction in financial assets impact the bond ratings of the water and sewer fund and the landfill fund?  While the proposed action may assist in the General Fund bond rating, doesn’t the converse action harm the Enterprise Funds ratings?
  • Doesn’t this action reduce the funds available to water and sewer for maintaining and upgrading the water and sewer systems? Duensing in his answer to Tolmachoff implies that it does.
  • If the Council approves this action, doesn’t that mean that a water and sewer rate increase will be necessary and supported by the Council? If a rate increase occurs, it looks like we can lay the evaporation of a pledge to repay the Enterprise Funds at the feet of retaining the hockey team as an anchor tenant at the city owned arena.

Duensing’s proposal is moving the pea underneath a different shell. It’s a magical, accounting trick designed to satisfy the rating agencies. The problem is that it sets precedent. Who, whether it’s a developer, a citizen or a company doing business with the city, will trust in the city’s word if it is willing to renege on paying a debt? If a water, sewer or landfill rate increase is proposed and adopted by this city council citizens will have every right to be angry for it will be driven by a broken promise to reimburse the Enterprise Funds. Glendale rate payers of the water, sewer, landfill and sanitation services will have every right to assume that any proposed rate increase is driven by money borrowed from these funds and paid to the NHL to run the arena for two years.

Duensing appears obsessed on building up the city’s reserve funds (contingency). While building the city’s reserve back up is necessary and critical his solutions are to keep the sales tax increase permanent and now, to raise Glendale’s property tax rate by 2%. He appears to have only two tricks in his bag.

Sterling Fluharty of the Glendale Star in writing an article entitled City decides not to cut taxes, in its online edition of April 6, 2015, reports, Glendale City Council had few objections two weeks ago when the acting city manager and financial director announced they were abandoning plans to lower the sales tax rate and making preparations for raising property taxes. Here is the link: http://www.glendalestar.com/news/article_b6c5e5e6-dc99-11e4-8961-4fb07a583a64.html#.VSNVhK1dGb8.twitter .

Last December Duensing was still pitching lowering the sales tax rate. Fluharty in his article states,  Duensing published a five-year financial forecast that month (December, 2014) that assumed the council would approve annual reductions, making the sales tax rate 2.85 percent in 2015-16, 2.825 percent in 2016-17, 2.8 percent in 2017-18 and 2.775 percent in 2019-20.” What information does senior management and the council have (not shared publicly) to cause them to not only reject a reduction in the sales tax rate but now to increase the property tax rate?

Since the new council was seated in January, 2012, adopting Duensing’s recommendations it has:

  • Made the increase of 2.9% as a temporary sales tax increase permanent
  • Approved a management agreement paying IceArizona $15 million a year
  • Will approve construction of a parking garage at Westgate for $46 million + over 3 years
  • Will approve a 2% increase in property taxes

Where is the council commitment to cut expenses and to live within the city’s means? It seems their only solutions to solving the city’s ongoing financial problems is to keep the increased sales tax rate and now to raise the property tax rate.

Over the next 3 years the General Fund will have to absorb an additional $46 million plus as brand new debt. That figure does not include the ongoing debt for the baseball park, the Westgate Media Center and is parking garage, the Westgate Convention Center, the annual $15 million payment to IceArizona and the construction debt on the arena and the Public Safety Training Facility…as well as other debt I have failed to include.

During council’s discussion of a property tax increse while the sales tax increase does not diminish Mayor Weiers said, “At least we’re giving our citizens something, certainly in the right direction, anyway.” What exactly are the Mayor and council giving to its citizens? A screwing? It appears the right direction for Mayor Weiers and this city council is to raise yet another tax.

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

For 4 years, from the time Jerry Moyes declared the team bankrupt in 2009 until the end of 2012, as a councilmember I was part of the high drama surrounding the Arizona Coyotes and the arena, a city owned facility. Suitors to buy the team came and went with regularity. The city paid the NHL $25 million a year to manage the arena while everyone desperately hunted for a new owner. In 2013 a new city council was seated and promptly approved the current management agreement of $15 million dollars paid annually to IceArizona, the new owners of the team. If truth be told that $15 million goes directly to Fortress Lending and the NHL as interest payments on the IceArizona’s purchase debt owed by LeBlanc, Gosbee, and et.al. If you remember the cash raised for the team purchase was approximately $45 million. The rest of the purchase price of $170 million was strictly debt. Today Andrew Barroway is the majority owner (51%) of the team.

A recent article on March 30, 2015, by Mike Sunnucks of the Phoenix Business Journal entitled Could the Phoenix Suns, city build a new arena at Phoenix Convention Center site? It is intriguing to say the least. Sunnucks reports on speculation about where the Phoenix Suns will be playing its games in the future, “ ‘US Airways Center is owned by the city of Phoenix and the Suns lease doesn’t expire until 2029’, according to city spokeswoman Deb Ostreicher. The Suns could look to the city for renovations of the downtown arena or could look for a new home.” Sunnucks goes on to say, “One scenario being talked about — at least in real estate and downtown Phoenix circles — is a new arena being built where the current South Building of the Phoenix Convention Center is on Jefferson and Third streets. That is the oldest convention center building and is a block away from the Suns’ current arena.”

Granted all of this is extremely speculative but there is the possibility of the Phoenix owned US Airways Center becoming vacant if Phoenix and the Suns decide to build a new arena at the site of the south building of the convention center. Take it a step further and it is not outside the realm of possibility that Phoenix would attempt to lure the Arizona Coyotes to a newly renovated and vacant US Airways Center with better sight lines for hockey patrons.

Think about it. Since purchasing the team two years ago IceArizona has consistently lost money due to many factors. One of those factors has always been fan complaints about trekking out to Glendale for the games. Many in the East Valley as well as from other locations such as Tucson simply choose not to make the trip. A more centrally located arena in downtown Phoenix has a certain appeal for many.

One wonders if it appeals to Barroway. Today, 2015, the Glendale arena is 12 years old, having opened in December of 2003. In another 3 years, by 2018, the arena will be 15 years old and the Coyotes will have the available option of moving due to the opt out clause any time thereafter. One of Barroway’s imperatives is to keep the team viable over the next 3 years until some major decisions are made.

In 8 years, by 2023, the arena will be 20 years old and in need of major renovation and upgrades. In the meantime, if Barroway and the City of Phoenix worked out a deal regarding US Airways it could solve one persistent fan complaint by relocating to a more convenient and centralized location. It would certainly fulfill the owners’ mantra of “here to stay”…just not in Glendale.

© Joyce Clark, 2015

FAIR USE NOTICE

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

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

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

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

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

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

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

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

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

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

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

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

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

© Joyce Clark, 2015

FAIR USE NOTICE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

© Joyce Clark, 2015

FAIR USE NOTICE

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

 

On Monday, March 16, 2015 the Glendale city council held a special workshop meeting. The only agenda item was the Public Safety Personnel Retirement System (PSPRC). There were 4 presenters: Brian Jeffries, President of the Professional Firefighters of Arizona (PFFA); Scott McCarty, representing the Arizona League of Cities and Towns Pension Reform Task Force; Justin Harris, President of the Glendale Law Enforcement Association (GLEA) and Secretary of the Arizona Police Officers Association (APOA); and Julie Pendergast, President of the Glendale Chapter of the Arizona Fraternal Order of Police (Glendale FOP) and Co-Chair of the Glendale Law Enforcement Coalition (GLEA +GFOP).

Mr. Jeffries (PFFA) began with a 35 minute presentation of the history and background of the PSPRC; legal challenges as a result of SB 1609 passed by the Arizona Legislature in 2014; and the state fire union’s call for a constitutional amendment to the state constitution. Mr. Jeffries was articulate and offered a slick presentation. One can appreciate why he is the president of the state fire union.

He acknowledged as their partners in seeking a constitutional amendment several law firms hired by the union; TriAdvocates hired by the union as their communications arm; the Fire Chiefs Union and the Fire Districts Association; and last but not least, the Fraternal Order of Police, the Arizona Police Association and the Arizona Highway Patrol Association.

He did clarify at one point, that while law enforcement had attended fire’s meetings on the issue of pension reform it was there to observe rather than as an active participant.

In essence, Jeffries was asking for council to sign on as a supporter of their constitutional amendment proposal. Their fire referendum’s basic language states, “The benefits of the beneficiaries shall neither be diminished nor impaired except for the provisions on Bill xxxx (sic), as passed by the legislature in 2014.” I don’t pretend to be an expert on SB 1609 and its provisions but it appears as if the fire union really, really wants this bill – to the extent that they want it to be a constitutional amendment. They don’t appear to be interested in true pension reform.

There have been lawsuits filed against SB 1609 and in the Harris case, one provision relating to retiree benefits has been struck down successfully. Another case, the Hall case relating to active personnel benefits, looks like it, too, will be struck down successfully.

Despite those provisions being removed the fire union still wants this bill to remain in perpetuity. Jeffries threw down the gauntlet when he proclaimed that the fire union wanted action now and were prepared to mount a statewide referendum campaign to get it on the ballot this year. We should all be asking, why the rush? Next year, 2016, there will be a presidential election and it could be on the ballot at that time. Instead they are ready to fund it and run it as a full, political operation with TV advertising, direct mail and a statewide grassroots effort – now, right now. The question remains, why?

The next presenter, Scott McCarty represents the Arizona League of Cities and Towns. The league, last June, put together a task force on pension reform. The League is taking a measured approach and is currently preparing a Draft Yardstick of pension reform goals, measurements and outcomes. In May or June of this year, they will compare the fire union’s proposal against their Draft Yardstick and by August, 2015 they will present their proposal for pension reform along with their findings of the fire union proposal to all participating cities at their Annual League Meeting.

Last up were Justin Harris (GLEA) and Julie Pendergast (Glendale FOP). Mr. Harris spoke on behalf of both Glendale police unions. He disputed Jefferies’ assertions that the police were on board by unequivocally stating, “The police union is not working in ‘concert’ with the fire union.” He went on to say, “Currently the police union is at odds with the fire union over an agreeable solution.” He said, “The police union wants a plan that is legitimate, legal and long standing.” If Mr. Jeffries’ statements about police union support for this constitutional amendment were in fact, misstatements, what else in his presentation was a misstatement?

Mayor Weiers made some interesting comments. He explained that at the time SB 1069 was introduced, he was Chair of the House Rules Committee. Upon legal advice he came to the opinion that SB 1069 was unconstitutional and would face legal challenges. Kirk Adams was former House Speaker and fully supported SB 1069. In essence, Mayor Weiers said Adams threatened him with removal of his chairmanship if he did not pass SB 1069 out of committee. Weiers acceded.

Weiers also stated that Mike Colletto of the Professional Fire Fighters Association was opposed to the bill but eventually caved and joined in signing off on it. It just so happens that Kirk Adams is Chief of Staff for newly elected Governor Doug Ducey. So don’t be surprised if the fire union effort eventually receives an endorsement from the Governor’s office.

Mayor Weiers then asked Acting City Manager Dick Bowers if this agenda item was informational or required direction because…he and the rest of council had received an email from…you, guessed it…Councilmember Gary Sherwood…asking that council give direction to place this item on an evening voting meeting agenda so that council could support the fire union’s proposed statewide referendum. Doesn’t Sherwood ever quit?

Councilmember Chavira, a firefighter for Phoenix, just couldn’t stand Mayor Weiers’ characterization of his self proclaimed mentor, Mike Colletto and said, “I never saw Mike Colleto cave on anything.” After thanking Jeffries profusely for his “complete presentation” (he almost said “complex”) he then went on to chide the council by stating the need for “solidarity” between the two unions implying that shamefully the police unions were not standing toe to toe with their brother union.

The most important lesson coming out of this informational presentation is that cooler heads…a majority of them…prevail. Those cooler heads are willing to take the time necessary to come up with public safety pension reform, built on compromise, that will stand up to legal challenge and last over time. The fire union’s proposed constitutional amendment speaks to a hidden agenda…what do you think it is?

© 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.

The Glendale city council is meeting in workshop today, March 17, 2015. At 10 AM Mayor Jerry Weiers officially declared the proposal to sell the library building and relocate the library to the Foothills Recreation & Aquatic Center as dead.

Many people deserve thanks. First and foremost the residents of Glendale are to be congratulated for their participation in the process. Many of you attended all six public meetings on the issue. Others made public comment either at the meetings, on comment cards, by calling a city hotline, or by sending email’s or letters to the mayor and council. Your efforts made the difference. Your expression of support for Glendale’s entire library system was noted.

Thanks also to the the three boards and commissions, Arts, Parks & Recreation and Library, that received information on the issue, listened to public comment, deliberated with serious consideration and recommended denial of the proposal to the city council.

Thanks to the city council for listening to the voices of the people and refusing to move forward with the proposal. They did their jobs in representing their constituents.

Thanks to Parks, Library and Recreation Director Erik Strunk and Chief Librarian Michael Beck for withstanding the public criticism of this proposal with grace and respect.

Councilmember Bart Turner offered an idea to provide library services in west Glendale by utilizing space within Glendale’s Media Center at Westgate. Glendale staff will now be tasked with researching the suggestion. I applaud Councilmember Turner’s suggestion and should it become reality, it is not a substitute for Glendale’s long term promise to establish a stand-alone, dedicated library building at Hero’s Park at 83rd Avenue and Bethany Home Road. It is an excellent interim solution to the lack of service we, who live in the Yucca district, have experienced for 15 years but it should not be considered the ultimate solution.

Once again, congratulations to all who participated in the process of consideration of the proposal. Job well done by all.

© 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 Friday, March 13, 2015 we learned that the Coyotes had finally finished their audit and submitted it to the City of Glendale. What is troublesome is the fact that the results were submitted to Glendale five months late. The first question is, why? IceArizona’s rationale is sure to be that the Barroway purchase was the cause of the delay. But his purchase was in December and it is now March. Audits do take time but not this much time.

Another troublesome aspect is IceArizona’s inability to abide by the arena management agreement stipulation 8.16.1 (c) Annual Financial Reports, “Not later than 90 days after the end of each Fiscal Year (June 30), provided, that if all necessary information from the NHL related to the following items (a), (b) and (c) shall not have been received by the date which is 30 days after the end of each Fiscal Year, then interim reports shall be provided within the normal time frame and final reports shall be provided within 60 days after the receipt of all necessary information from the NHL related thereto): (a) a balance sheet relating to Arena Facility operations as to the end of such Fiscal Year, (b) a statement of profit or less for Arena Facility operations during such Fiscal Year, and (c) a statement of charge of financial condition for Arena Facility operations during such Fiscal Year, each prepared in accordance with GAAP as consistently applied (if there are multiple interpretations of the application of GAAP, GAAP as traditionally interpreted by the Arena Manager and the Team Owner shall apply) (collectively, the “Annual Financial Reports”), and accompanied by a report containing an opinion of the Arena Manager’s accountants, stating that such Annual Financial Reports relate, that such Annual Financial Reports have been prepared in accordance with GAAP as consistently applied and that the examination by the Arena Manager’s accountants in connection with such financial reports was made in accordance with GAAP.” The agreement then states in 8.17.1. Audits, “The City shall have the right to conduct an independent audit of the management and operation of the arena (or any part thereof) and the Account Records (or any part thereof) and the Team Owner Records (or any part thereof) by the City Staff or by an independent certified public accounting firm selected by the City.”

The City should have received an Interim Audit about October 1, 2014. Instead it received the Final Audit on March 13, 2015, five months late. On November 4, 2014 in anticipation of receiving the expected Audit, the City hired Proeminent Sports, LLC, and a Nevada limited liability company, to audit the information IceArizona was supposed to provide in a timely fashion and to present its findings by December 15, 2014.

Note that the City’s expectation was that the audit would take about Coyotes Audit contract_Page_26 weeks, not months and months and months. Tony Tavares, former president of the Anaheim Mighty Ducks and Los Angeles Angels and Managing Member of Proeminent Sports, is the lead in conducting the audit. Tavares just happened to have been involved with Chicago White Sox owner Jerry Reinsdorf in 2011 when Reinsdorf was trying to purchase the Coyotes from the NHL. Is there any conflict of interest?

On March 13, 2015 the media began sharing leaked results of the audit. Since the city has not publicly posted the audit results the leaking appeared to have been on the IceArizona side. What has been reported by some media traditionally sympathetic to the Coyotes is a total loss figure of $34,831,000.  It breaks out into operating losses of $16,458,000 and one time charges of $18,373,000. Their argument is that one should only look at the operating losses of nearly $16.5 million dollars and should not consider the nearly $18.4 million dollars in additional losses because they are one time charges and will not recur. They are correct in stating those specific charges will not recur but it is reasonable to assume that there will be other, onetime charges each and every year. While they will not be the specific ones attributed to this Fiscal Year, there are bound to be other onetime charges annually.

I attended the Blackhawks game last week and couldn’t help but notice that the majority of attendees were Hawks fans. The robust chants for the Hawks in our house were downright embarrassing. It appeared as if nearly every Coyotes ticket holder had sold their seats to Hawks fans. With a team that is not performing well it is not surprising to see the fan base shrink. Fans are fickle. Everyone loves a winner…a losing team? Not so much.  It may well be that operations and team revenue earnings will reflect this downward trend this Fiscal Year.

That brings us to the troublesome “out” clause that IceArizona may exercise after 5 years of losses totaling $50 million dollars or more. There has been considerable past discussion that lingers to this day over that particular clause. Many fans asked why the stipulation was necessary if the owners’ intent is to keep the team in Arizona. Others, from the Glendale resident side, called for the very same stipulation for the city. Quietly, oh so quietly, the IceArizona owners retained the “out” clause and the city never received such a stipulation in its favor. Is it any wonder that speculation about the owners’ long term intent has surfaced again upon learning that first year losses are $38.4 million dollars? After all, that figure is more than half of the $50 million dollars required in demonstrated loss before the owners can exercise the “out” clause.  

In a March 13, 2015 Craig Morgan story for FoxSports Arizona CEO Anthony LeBlanc stated, Naysayers will try and bring up the out clause at every opportunity… It leads to a simple question: If the franchise is successful financially, why would you even consider exercising it? The out clause was a protection mechanism.” The better question is…if the franchise is successful financially, why are you, Mr. LeBlanc et.al, keeping it? There would be no speculation every time Las Vegas or Seattle is mentioned if there was no “out” clause.

© Joyce Clark, 2015

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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.

I belong to a neighborhood website that encompasses my area as well as about a dozen other subdivisions adjacent to Westgate and the Tohono O’odham temporary casino (currently under construction). A few days ago a conversational thread began on the site reflecting residents’ opinions regarding the effects of a casino near all of us. About 7 people have posted their opinions to date. I feel compelled to dispel some of their assumptions.

A local realtor in the Westgreen Estates subdivision said, “I do not recall any values going down as a result of a casino being built.” It’s one of the first questions you hear when someone wants to build a casino somewhere near you. That question is what’s it going to do to my property value?

There is now enough data from other areas of the country and their experiences with a casino to prove property values are impacted negatively from a nearby casino. From American Attitudes on Development comes, “A nuclear power plant, while the least-favored type of power plant, would still be preferable to a landfill, a casino, or an aggregate quarry.” A Foxboro, Maine resident and realtor for 23 years offered this in an op-ed in the Foxboro Sun Chronicle, March 11, 2012. Foxborough was facing the prospect of a casino in its community. Based on his 23 years of real estate experience he said, A casino is controversial. Anything controversial will cause some home buyers to exclude Foxboro and surrounding towns. This potential reduction in buyers will negatively affect the price and resale of homes here.” He went on to say, “A casino will change the demographics and feel of the town. The casino developer is setting aside funds to deal with the increased need in law enforcement the casino will bring. Many families moved to Foxboro because of the community feel. Any significant change in crime, drug abuse, alcohol abuse and, domestic violence, or any other demographics will change the feel and fabric of Foxboro and surrounding towns.”  A 2013 study by economists belonging to the National Association of Realtors concluded that, “the impact of casinos was ‘unambiguously negative’ on a housing market.”

I can hear the outrage from casino supporters now but the fact remains, while they support the casino, few property owners (including casino supporters) actually want to live near this casino. Most people understand that, at the very least, a casino operates 24/7 and will lead to an increase in crime, traffic congestion, drunken drivers, trash, tour buses and road noise – and that these things will be ultimately reflected in a reduction in property values.

None of the local resident responses asked about a casino and its effect on crime rates. Yet it is another area of concern. The following is an Abstract entitled Casinos, Crime and Community Costs by Earl L. Grinols and David B. Mustard, originally published in 1996 but this excerpt is from the Review of Economics and Statistics (February 2006). The authors say,“Casinos increased all crimes except murder, the crime with the least obvious connection to casinos. Most offenses showed that the impact of casinos on crime increased over time, a pattern very consistent with the theories of how casinos affect crime. The crime-ameliorating effects of casinos through increased employment opportunities and wages for low-skilled people will be concentrated shortly after opening. Between 5.5% and 30% of the different crimes in casino counties can be attributed to casinos.

“According to the study, five years after a casino opens, robbery in the community goes up 136 percent, aggravated assault is up 91 percent, auto theft is up 78 percent, burglary is up 50 percent, larceny is up 38 percent, rape is up 21 percent and murder is up 12 percent, compared to neighboring communities. Crime-lowering effects, like additional police and the new jobs represented by a casino are overwhelmed by rising crime increased by the presence of the casino, according to the study.”

Locals responding on this thread believed that traffic would be manageable. A resident of Westgreen Estates subdivision said, “We have enough open space to adapt to any increase traffic (sic).” A Rovey Farm subdivision resident said, “A quick drive around the other casinos in the valley will show you what kind of traffic to expect. (Not much).”

The Connecticut South Western Regional Planning Agency issued a Casino Traffic Impact Study in 2009.  “The purpose of this study was to estimate the possible traffic and air quality impacts of the development of a casino in Bridgeport.” The study concluded, “the development of a casino would have a significant impact on traffic congestion in southwestern Connecticut. Casino traffic is not seasonal because the number of trips to and from casinos is relatively consistent from month to month. Casinos operate 24 hours per day; there is no peak travel period to and from casinos thus traffic impacts of casinos may be experienced at all times of day.”

The increased traffic in the area will not just be due to the number of visitors to the casino. Add to that, traffic from employees as well as vendors and suppliers making deliveries with their semis at all hours of the day and night. Many transportation agencies in many states where casinos have located have done similar studies. All of these transportation studies recommend new transportation infrastructure whose costs are borne by you – the taxpayers. Increased traffic in our area will not be the result of an occasional Cardinals football game. Instead imagine that kind of traffic every day of the year, 24/7.

Yet other studies demonstrate sales tax revenue moving from other, traditional sources to a casino. In essence there is a shifting of sales tax revenue away from hotels and restaurants such as in Westgate, toward gambling facilities. Visitors and residents spend money on gambling that would otherwise be spent on other goods and services. This effect is known as “substitution.” There is also a shift of workers currently in one industry to the gambling industry. This is known as “displacement.”  This new development will take workers from other industries and move them into the casino industry. A New Hampshire study also offered, “For a standard casino, most patrons come from within 30 miles and participation declines exponentially as distance increases.”

So, respondents from Provence, Rovey Farm and Westgreen Estates, to the thread of discussion about casino impacts, be careful what you wish for. Then again, if you don’t mind a reduction in your property value, increased crime and increased traffic congestion, continue to welcome this casino that will most assuredly change the long treasured fabric of our community.

© 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 March 7, 2015 the Glendale Republic ran an op-ed by Mayor of Scottsdale Jim Lane, Mayor of Fountain Hills Linda Kavanaugh, Mayor of Apache Junction John Insalaco and Mayor of Litchfield Park Thomas Schoaf. It was in juxtaposition to another op-ed by Tohono O’odham Chairman Ned Norris, Jr. Norris’ and the tribe’s ad campaign slogan has always been one of “keeping the promise.” Yes, they have kept their promise — to screw everyone – the state, the voters, Valley cities, sister tribes and the people of Glendale. Many readers no longer get the Republic so I offer these 4 mayors’ remarks below:

Don’t reward years of deceit with Glendale mega-casino

“As mayors of Valley cities, we believe the potential Glendale casino represents no cause for celebration. From the Tohono O’odham Nation’s secret plan to put a casino in the Valley to their breaking faith with the voters of Arizona who in 2002 narrowly approved the current tribal gaming compacts, the path to the construction of this casino has been pockmarked by deceit.

“We do not make such a statement lightly, but no other explanation seems to fit the facts. It’s because of this history of deception, coupled with the serious ramifications this casino likely will have on every Valley city, that we, as mayors, jointly urge the Arizona Congressional delegation, led by U.S. Senators John McCain and Jeff Flake, to immediately force action on the Keep the Promise Act of 2015, which will prevent the Tohono O’odham Nation from moving forward with its gaming facility near homes, schools, places of worship and child-care centers.

“While federal court actions still have the potential to stop this project, time is of the essence for Congress, which absolutely can prevent this monument to greed. As you read this, the Nation is actively building a temporary casino structure in Glendale, while publicly saying they intend to open the casino before the end of the year.

“Even so, a moment spent exploring history is vital to understanding why so many Valley leaders and residents have declared this casino – with its 1,100 slot machines and 1,000 seat bingo hall – such a bad idea. Our opposition traces back to the 2002 election and the years of compact negotiation preceding that vote. Throughout that process, Tohono O’odham and other Arizona tribes promised that these compacts would preserve the balance of tribal gaming statewide, and that the casinos would be restricted to traditional tribal lands. The Phoenix metro area, the tribes promised, would get no additional casinos. None.

Records show that, even as the Tohono O’odham was making that promise and helping bankroll a $20 million campaign, they were actively seeking land in Glendale. Tohono O’odham negotiators misled state negotiators and other tribes regarding its true intentions for its fourth casino. To allow the tribe to open that casino in the Valley would be to reward deception.

“In a 2014 policy decision, the federal government allowed the Tohono O’odham Nation the ability to build as many as four casinos on county islands throughout the Valley. This the Nations can do without consulting with impacted communities or being subject to any Maricopa County zoning requirements. Given that the tribe already has sited a casino near a school, nothing can effectively stop them from putting one of its next three casinos in your neighborhood, near your child’s school or beside your church or synagogue. After all, the Nation is headquartered in southern Arizona. They simply do business in the Valley, giving them little reason to invest in our communities and to preserve our quality of life.

“Should these properties be given a green light, you can be sure the massive gaming corporations who run Vegas and America’s horse tracks again will target Arizona for expansion. With the promise of gaming restricted to traditional reservations in tatters, the Legislature would have no reason to keep out big gambling.

“The Keep the Promise Act of 2015 will stop that ugly breach of an important vow; at least until the gaming compacts expire in 2027. This legislation is fair. It merely ensures that tribes act in good faith and it’s good policy for our state. Failing to act would be to reward years of deceit by one tribe at the expense of the citizens of Arizona.”

The Tohono O’odham brags about the support it has, namely Glendale, Peoria, Tolleson and Surprise. The Glendale city council did an abrupt about face welcoming the casino when received its thirty pieces of silver for its betrayal of its resident’s wishes to stop it. Peoria, Tolleson and Surprise hope to gain economic crumbs from a casino on the west side of the Valley. They are all complicit in the deceptions of the Tohono O’odham. Make no mistake. These mayors in their op-ed were right on the mark when they said it’s all about greed. For the sake of the almighty dollar the Tohono O’odham have proven they will knife anyone in the back who stands in their way. They have destroyed their reputation as well as the trust of their sister tribes. There’s an old saying, “what goes around, comes around.” The Tohono O’odham will learn that lesson soon enough.

© 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.

In the March 5, 2015 edition of the Glendale Star Becker Boards is running a full page advertisement. The ad states that Becker Boards will pay someone $1,000 to be donated to their favorite 501C3 charity if you can see a crane on their property on March 13, 2015 between 3 pm and 6 pm.  Becker is running a “crane test” on their property that evening try to prove that their proposed digital and static billboards are benign and really won’t bother you.

There are qualifiers to win the money: 1. you have to be able to see the crane with the naked eye; 2. you must see it from the first floor of your home or yard; 3. you must live in Glendale and 4. you must call your district councilmember or Mark Becker (602-740-9145) to have them come to your home to verify your claim. Oh, and only 1 donation per household. So don’t have your 5 family members call to make a claim.

It’s a great marketing shtick but Becker has missed the larger picture. In their stubborn attempt to get their billboards approved they do not realize their action as precedent setting. Should those billboards be approved the door is open to allow billboards all along the Loop 101 from Bell Road to 59th Avenue. With the exception of the Bell Road commercial corridor, the majority of property along the Loop 101 in Glendale is all residential with a sea of homes dotting the landscape. More applications for billboards along the Loop 101 are sure to follow.

There are only 2 sections of the Loop 101 in Glendale. One section is from Camelback Road to Northern Avenue. That area is commercial with the WalMart Center at Camelback Road to Dignity Hospital West south of Northern Avenue. Billboards in that area are appropriate to a commercial corridor. However, the other section of Loop 101 runs from Bell Road eastward to 59th Avenue. Only Bell Road is commercial. Beyond Bell all one can see are homes. That area is not appropriate for the proliferation of billboards.

There is a large segment of Glendale citizens philosophically opposed to billboards as visual pollution. For them it is a matter of principle to keep billboards out of Glendale as much as possible.

There is a great deal of anger and frustration by residents in the Sahuaro and Cholla districts. They fought the fight against billboards and were pleased when the city council listened to their voices and denied the Becker billboard proposal. Now it has been resurrected and they must fight the same issue again. Councilmember Gary Sherwood has said publicly that he will bring the issue up every six months until it is approved. Is he pushing this issue because of the campaign contributions he received from the Becker billboard interests as well as attorneys from the Jordan Law Group, attorneys for Becker? That is for you to decide.

On another note: The advisory recommendations of denial of the proposed Foothills library sale and relocation made by three commissions, Arts, Library and Parks & Recreation were to be received by the city council at the March 3, 2015 city council workshop meeting. That did not occur and now we are hearing that those recommendations of denial will be presented to the council “sometime this spring.” Many residents are wondering what the heck is going on? It leads them to assume that there is some kind of secret deal between Midwestern University and the City of Glendale and that it is a fait accompli. Residents are decidedly unhappy between the billboard issue rising again and the limbo of waiting for a final decision on the proposed library sale. It’s time to put both issues out of their misery irrevocably and permanently.

© 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.