Header image alt text

Joyce Clark Unfiltered

For "the rest of the story"

20140812_193537The August 12, 2014 meeting of the Glendale City Council was like watching a train wreck in slow motion. You know the inevitable outcome; you know it will be extremely painful; but you are utterly powerless to stop it. All you can do is watch it unfold. This is the first council meeting I attended since leaving office over a year and a half ago. People have been telling me for months that the animosity among councilmembers was evident. I thought OK, there were times when our council meetings were not happy affairs. Little did I know that the atmosphere reeked of councilmember nastiness and disrespect. It was palpable fueled by the absolute arrogance of the council majority (Sherwood, Hugh, Alvarez and Chavira). The meeting was not unusual as council sped through proclamations and the consent agenda. The last two items were casino related. One was council approval of the draft agreement between the Tohono O’odham and Glendale. The other was the first official groveling of the city council with a resolution supporting the construction of the casino.  All hell broke loose. The draft agreement was introduced and recited by Michael Bailey, Glendale’s City Attorney. Mayor Weiers opened the public comment portion. There were 22 speakers to the item. 15 citizens spoke in opposition to the draft agreement and 7 spoke in favor of the draft agreement. The speakers’ comments in opposition to the proposed casino revolved around these general themes: casinos produce greater crime in the adjacent area; they create a greater rate of gambling addiction and subsequent bankruptcies and home foreclosures. The two major themes were comments about the rush to get this agreement done and the fact that it simply wasn’t a good deal for Glendale. There were some memorable comments to share (my apology if I butcher someone’s name). John Burnell of the Sahuaro district related that a family member, as a gambling addict, maxxed out credit cards and lied to keep it secret. The husband had to take two jobs and it took him over two years to get the family’s finances back on track. Barbara Roberts acknowledged the casino job creation but said, “Yes, we need jobs but what kind of jobs?” Timothy Green of Goodyear said, “Casinos only succeed on the backs of losers.” A rather profound statement. Ron Kolb, Ocotillo district said, “The West Side will never be the same.” Dr. Ron Rockwell, pastor of a Yucca district church very near the casino site, said, “You no longer care about the moral and spiritual culture of this community.” Randy Miller, candidate for the Barrel district council seat, called out Councilmember Alvarez and her continual homage about the importance of listening to the people…yeah, Norma, right. It seems to be a principle of hers only when convenient. Those speakers in support of the casino were arrogant and boastful. John Mendlelberg, former Mayor of Surprise, said, “You must concede.” Reverend Maupin of Phoenix, said, “You lost the war. You should be grateful for whatever you are getting.” He accused Councilmember Martinez of being a liar and a racist. Robert Quizneros of the Ocotillo district complained about the audacity of “the other side’s hiring of attorneys and lobbyists” to defeat the casino. A special “shout out” to Lauren Tolmachoff, candidate for the Cholla district council seat. It appears that she has become a one-trick pony as she reiterated her support for the casino in the name of jobs. Hey, Lauren, don’t you know about “job displacement?” Several pro-casino speakers kept referring to, “it’s their (TO) land.” Well, yes it is after a purchase kept secret for 7 years and its newly minted designation as a reservation. It’s all about a reservation WITHIN Glendale. I defy anyone to identify any city in the State of Arizona that has a reservation within its boundaries. Then it was time for the Councilmembers to speak prior to their vote. Alvarez’ remarks were priceless in their ignorance. She made memorable comments such as, “what’s the difference between a lottery ticket and a casino?” Or, “We have casinos in Scottsdale.” Or, “They (Tohono O’odham) are going to provide a service.” That one caused audible audience derision.  And lastly, “Make us responsible for what we’re doing.” Trust me, we will.   Councilmember Sherwood, self-proclaimed negotiator and leader, was strangely silent all evening except for his monologue prior to his affirmative vote. His comments deserve a special blog and its coming. Councilmember Martinez offered a series of amendments to the draft and that’s when all hell broke loose. Councilmembers Alvarez and Chavira, repeatedly and often, yelled out while Councilmember Martinez was trying to speak, “Call for the question!” Their obvious intent was to silence Councilmember Martinez’ efforts. What were they afraid of? They knew they had the votes to defeat any amendment. Chavira was literally in a rage because of Martinez’ efforts. He lept out of his seat and it looked as if he was about to confront Mayor Weiers physically. Wow, Sammy. Finally we see the true persona and your reaction when crossed and you don’t get your way. The lack of control he exhibited demonstrated that he is unfit to serve as a councilmember and cannot conduct himself in a manner required by the office he holds. Martinez offered 4 amendments: raising the TO payment to $20 million or 3% of the Class III net; offsite infrastructure costs to be paid by the TO up front; a waiver of sovereign immunity especially with regard to fraud and other bad acts; and payments to continue beyond 2026. Each was rejected. The vote was as everyone expected. The majority of 4 – Sherwood, Alvarez, Hugh and Chavira voting to approve the agreement and Weiers, Martinez and Knaack voting against. What was unexpected to the degree it manifested itself, was the vituperativeness and nastiness. At one point a citizen called Martinez a liar and a racist. Mayor Weiers should have stopped the speaker immediately and requested a police officer escort the person from the building. There is no doubt that Mayor Weiers lost control of the meeting during the first casino agenda item. His failure fueled the majority’s contempt and rage. Kudos go to Bonnie Steiger, a Glendale resident and faithful attendee at council meetings for 28 years. She is everyone’s Grandmother. She was so disgusted with council’s behavior that she said their lack of respect for the very office they hold merited the removal of all of them. Lastly, I offer two interesting items for your attention. One is the Coyotes publicly announced today that they had accepted a deal for arena naming rights. Are you ready for this? It will be called the Gila River Arena. Hooray for the Gila River. Although it may require Glendale approval, Glendale may only reject for very narrow reasons and the new naming rights do not fit the criteria. Can you say embarrassing, Glendale?? Or perhaps the majority of 4 will figure out a way to kill the deal. The second item is that just before 5 PM, yesterday, August 12, 2014 a group filed paperwork with the Glendale City Clerk’s office for a Political Action Committee for the purpose of recalling Councilmember Gary Sherwood. Things are heating up in Glendale. As I said at the beginning of this blog, this meeting was definitely a train wreck but the pain is yet to be borne by all of the people of Glendale. © Joyce Clark, 2014 FAIR USE NOTICE This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

August 11, 2014

Dear Councilmember Hugh,

I do not know you on a personal level for your service as a Glendale councilmember the first time was before mine and your service the second time was after mine. I do get a sense of you from your public actions and comments.

You have lived in Glendale all of your life. You own a business, Bridgestone Tires, in downtown Glendale. You married and raised a family in Glendale.  You love Glendale as evidenced by your many years of public service to our community. You are a fiscal conservative and have voiced concerns about Glendale’s financial status. You are a good and honorable man.

From your public statements you support the proposed Tohono O’odham casino. That is a separate issue that merits debate at another time. This agreement is not about whether one thinks the Tohono O’odham has the right to build.

This agreement is a business deal, pure and simple; you give me “X” and I’ll give you “Y.” This agreement is not a good business deal for Glendale. Please review the proposed Tohono O’odham/Glendale Agreement one more time. There are solid, reasonable reasons why the proposed agreement in its present form does not serve the best interests of Glendale. Here are just three of the many, major flaws:

  • It does not protect Luke Air Force Base. It does not allow Glendale the right to design review and the ability to insure that construction of any structure will not interfere with Luke’s mission.
  • The payment to Glendale is too low. By now you have seen what other cities across the country have been able to achieve in terms of revenue sharing. Some tribes share as much as 25% of their revenue.
  • The sovereign immunity waiver offered is restrictive. Glendale must be able to fully and freely access its ability to enforce the provisions in any court and any jurisdiction.

Please put aside your support of the Tohono O’odham and examine this agreement strictly in terms of Glendale’s best interests. I am asking you to make a motion to table this agreement, return to the negotiating table and craft an agreement that reflects the imperative…to create the best deal possible for Glendale. If a motion to table is rejected, I ask that you vote “No” and reject this flawed agreement.

The tabling or rejection of this proposed agreement gives voice to your love for and to your commitment to Glendale.  It will show that you listen to and value the input you receive from the community. There is no reason to rush this through.  As a Glendale City Councilmember it is your responsibility to create policy that serves our entire community. Please show everyone that you take that responsibility very seriously.

Thank you for your service to Glendale. It is recognized and very much appreciated. In times such as these, you have a very difficult job and I doubt the public understands exactly how difficult. Thank you for your consideration of my remarks and request.

Sincerely,

Joyce Clark

© Joyce Clark, 2014

FAIR USE NOTICE

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

The Glendale City Council will vote on the proposed Tohono O’odham/Glendale agreement on Tuesday evening, August 12, 2014. Expect a packed house with speakers both pro and con. If you would like to attend the meeting here are the details:                                                     

Tuesday, August 12, 2014

6 PM

Glendale City Council Chambers

5850 W. Glendale Avenue

In the proposed agreement the Nation will pay $100,000 to the Glendale Convention and Visitors Bureau with an annual 2% ($2,000) increase. Bet on the payment coming from the state mandated percentage that all tribes must dole out to non-profits annually. Although not specified in the proposed agreement the general understanding is that the money will be used to promote and advertise the casino. Now, that’s a sweet deal for the Tohono O’odham (TO). The funds will be used exclusively for the proposed casino’s promotion to the detriment of other competitor member businesses who have restaurants, bars or hotels.

Glendale would be better served to have a stipulation similar to the Seneca/Buffalo agreement. In June, 2014 the Buffalo News reported, “Seneca Gaming Corp. on Thursday announced a plan to spend $3 million over a year marketing Buffalo’s attractions… The marketing program announced Thursday includes print, television, radio and digital advertising in Ontario, Pennsylvania and Ohio. Among the targeted markets are Toronto, Cleveland and Pittsburgh.” Hmmm…$3 million and Glendale is settling for $100,000 to its Convention Bureau to be used to advertise the proposed casino.

It is widely known that Mayor Weiers, while visiting the City of Niagara Falls, received a great deal of information on that city’s casino revenue sharing arrangement. He brought it back, had it copied and distributed to every member of council. They know there is a better deal to be had yet they continue to rush to accept this deal. People are now openly wondering is there any quid pro quo? Have the Tohono O’odham done or will it do Independent Expenditure campaign mailings for Alvarez? In 2016 will it do the same for Hugh, Sherwood and Chavira? Many readers of this blog still can’t get over Mark Becker’s (Becker Billboards owner) campaign donation of $2,500 to Alvarez and her vote of approval for the billboards. So much for principle. If they are ugly and unwanted in her district, why wouldn’t they be ugly and unwanted in the Cholla district?

Are you dumb founded yet by this proposed agreement? If not, you should be. It’s reminiscent of the arena management deal and the Camelback Ranch deal. The majority (Alvarez, Hugh, Sherwood and Chavira), avid supporters of the TO, have continually pointed fingers at previous councils and their inability to negotiate deals to benefit Glendale. Now they have an opportunity to negotiate in Glendale’s best interest and they have blown it.

This is a deal that begs for rejection. The majority of 4 can’t do that for all kinds of reasons: their haste to get something…anything…before the November General Election when the council make up could change and they lose their majority; their haste to get something…anything…should the Attorney General’s investigation into Open Meeting Law violations drops the hammer on any or all of the 4 of them and they lose their majority; and lastly, out of sheer embarrassment for rejecting an agreement they have publicly proclaimed as a “good deal for Glendale.”

What they fail to recognize is that the Tohono O’odham are desperate. They need Glendale. Glendale does not need the Tohono O’odham. The TO must still secure gaming approval from the Bureau of Indian Affairs and the Interior Department and to obtain it they need Glendale and the Governor of the State to enthusiastically embrace their plans.

This coalition of 4 councilmembers reminds one of an old, worn out, street hooker bending over and willingly accepting five bucks for services rendered. It’s downright pitiful and embarrassing.

© Joyce Clark, 2014

FAIR USE NOTICE

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

The proposed agreement between the City of Glendale and the Tohono O’odham should not be executed at this time. It is premature. There are outstanding legal actions and Congressional legislation yet to be decided. At the very least, the Glendale City Council should table this action to a time uncertain. There is absolutely no need for execution of this agreement immediately. In the last blog there were 3 major flaws with the agreement. Let’s take a look at them.

  1. The City of Glendale has no authority to review the design and the only entity that can inspect construction is the Fire Marshall. The Fire Marshall will not be able to tell if the plumbing, electrical, etc., construction is up to Code. The reservation is similar to a foreign nation planted inside Glendale. The proposed casino’s design cannot be approved by Glendale and even more importantly, the Federal Aviation Administration. The University of Phoenix Stadium’s height was subject to the FAA process and required approval from the agency. If the Tohono O’odham builds structures whose height interferes with operations of Luke Air Force Base or the Glendale Municipal Airport, Glendale and every agency is prohibited from taking action to stop it. There is precedent for such action. In Kenosha, Wisconsin their agreement stipulates, “That the Menominee Kenosha Gaming Authority will follow all applicable building and Federal Aviation Rules during the construction and operation of the project.”  Glendale should insist on a stipulation in the agreement requiring the Tohono O’odham’s development to be subject to Glendale’s design review process and FAA restrictions.
  2. The amount to be paid to Glendale annually is too low. Here are some examples of Tribal revenue sharing with other cities across the country. In NY Governor Cuomo’s press release of August, 2013 says, “Under the agreement, the local governments in Buffalo, Niagara Falls, and the Salamanca area will receive their full 25% share of local impact payments, a total of $140 million. Today, the Governor traveled to Western New York to present checks to the local governments receiving funds under the agreement: Buffalo will receive $15.5 million, Niagara Falls will receive $89 million, and the Salamanca area will receive $34.5 million.” Because of a dispute between the State of New York and the Seneca Tribe payments were suspended for several years. The money cited in the press release were back payments made by the Seneca Tribe to those 3 cities. These cities receive anywhere from $2 to $8 million annually. The Seneca facility is about half the size of the proposed TO casino and therefore generates about half of the revenue expected at the proposed TO facility. Here is another example and it underscores another problem, “Officials in Duluth, Minnesota, are still trying to reinstate a gaming agreement with the Fond du Lac Band of Lake Superior Chippewa Indians. The tribe was sharing 19 percent of gross revenues from the Fond-du-Luth Casino. The tribe stopped making payments in 2009 after sending $75 million to the city.” If the Tohono O’odham stop making their miserly annual payments to Glendale, the city will see itself in a Duluth-type situation, waiting years to rectify the situation. Here is one last example and believe me, there are plenty more that could be cited. The Michigan Pokagon-New Buffalo Area Local Revenue Sharing Agreement says, “Section 18 of the Compact defines how tribal payments are made to local governments…These payments shall equal 2% of the annual net winnings at each casino derived from all Class III electronic games of chance, to the local units of government that are located in the immediate vicinity of each tribal casino site or that are otherwise directly affected by the operation of the casino.  It is the intent of the State and the Tribe that the payments to local units of government provided for in this section will be used primarily to provide financial resources to those political subdivisions of the State that actually experience increased operating costs associated with the operation of the Tribe’s Class III gaming facility.” For the most recent fiscal year, as of July 31, 2011, the total allocations of the tribal payments were shared by 8 cities and 4 educational districts in the amount of $5,818,019. The City Council should renegotiate the Tohono O’odham annual payment and require $15 million annually. That is equal to ONE DAY of estimated net profit or it should stipulate a percentage (no less than 5% annually) of net profit.   
  3.                                                                                                                                                                                                             3.  Lastly, Lastly, there is the issue of tribal sovereign immunity. The TO in the proposed agreement refers to a TO Resolution 14-317. I visited the Tohono O’odham’s web page on its Code and some very interesting information was available: “The Tohono O’odham Code is an unofficial compilation of the Nation’s laws of permanent and general interest, as well as Tohono O’odham Judicial Court rules, canons, and significant administrative orders. While the Code as a whole has not been formally adopted by the Legislative Council, an increasing number of the Nation’s laws are being adopted in a uniformly codified format and the individual laws appearing in the Code have been duly enacted as reflected in their legislative histories.” The web page defines sovereign immunity further: 

“Section 2101 Sovereign Immunity

    1. “The government of the Tohono O’odham Nation (“Nation”) and any person acting within the scope of his or her capacity as an officer, employee, or agent of the Nation are absolutely immune from suit, court process, or liability.
    2. “The Nation’s sovereign immunity extends to the Nation’s districts, enterprises, entities, and the officials, employees, and agents thereof.
    3. “Sovereign immunity cannot be waived except by a resolution or other official action of the Tohono O’odham Legislative Council expressly waiving, or authorizing a waiver of, sovereign immunity; provided that such a waiver shall be limited in accordance with its terms. A Legislative Council action that authorizes a Nation’s district, enterprise, or entity to sue or be sued does not waive sovereign immunity unless a waiver is expressly granted in a separate written contract or other duly approved writing.”

What is Resolution 14-317, where is it and what does it say? On Thursday, July 17, 2014 the TO called a Special Session and the last Resolution approved that day is Resolution 14-316, approving a Pisinemo District 2014 Operations Amendment . When was Resolution 4-317 passed and why is it not posted on the TO web site listing all actions passed by their Legislative Council? The City Council should require a stipulation requiring the TO to completely waive sovereign immunity with regard to any provision of this agreement. If the TO will not do so, then they have something to hide.

The proposed agreement makes me ill. Once again, Glendale is being taken to the cleaners and the majority of 4 councilmembers are too dumb or too ignorant to realize it. If they are truly serving the best interests of Glendale, as they claim to do, ad nausea, then they would take action to reject this TO self-serving agreement or at the very least, table it and craft an agreement that protects Glendale and works in its favor. Any one of these issues is enough grounds to reject or table the current proposed agreement. I would hope Councilmember Hugh might be concerned enough about these agreement provisions to support such action. So should Councilmember Sherwood, who fancies himself a negotiator and businessman extraordinaire.  

©Joyce Clark, 2014

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

This is the proposed casino’s reality. Fort McDowell Casino isFort McDowel prime-rib 2 currently running ads that offer Prime Rib on Tuesdays for $6.99 and Crab Legs on Wednesdays and Thursdays for $7.99. It’s not possible for a Yard House, Gordon Biersch, McFadden’s or Saddle Ranch Chop House at Westgate to offer these prices.

Fort McDowell prime rib July 2014You will not see prices like these at the Westgate restaurants for very good reasons: sales tax and regulatory costs. You see, these restaurants have to collect federal, state, county and Glendale sales tax. The Glendale portion of the restaurant sales tax is 3.9%. When state and county taxes are added the total rate is 11.2%.What sales tax does the proposed Tohono O’odham casino with its planned restaurants pay? Nada…zip…nothing.

The icing on the cake is that the Glendale city council just voted to make the temporary sales tax increase permanent…just another stake in the hearts of these restaurants.

Add to the unlevel playing field of all kinds of taxes paid by businesses in Westgate the myriad of federal, state and local regulations with which these businesses must comply. It eats into Westgate businesses’ profits to do so. As a sovereign nation the TO is not required to comply with federal, state, county or local regulations. What regulatory costs does the proposed Tohono O’odham casino bear? Nada…zip…nothing.

TV Channel 5 weekly runs a “Dirty Dining” segment with recent results of inspections of restaurants in Maricopa County. Have you ever seen a Tribal restaurant inspection review? Of course not. Tribal reservations are not subject to these kinds of inspections. They are not subject to federal (OSHA), state, county or local health, safety and welfare regulations because they are a reservation and have sovereign immunity…consider the reservation as a foreign country planted within Glendale. A call placed to the Maricopa County Department of Environmental Services revealed that it has no jurisdiction over tribal restaurants and the Indian tribes regulate themselves. What regulations are there to protect the health, safety and welfare of the casino’s workers and patrons? Nada…zip…nothing.

What do you bet one of the very first elements the Tohono O’odham (TO) will build is paved parking lots. Why, you ask? So they can undercut parking prices for Cardinals games, hockey games and other non-sporting events held at Glendale’s arena, less than a mile away. Is there anything that can prevent the TO from offering cheap parking? Nada…zip…nothing.

I can see it now…shuttle busses packed to the gills disgorging seniors coming from the Sun Cities and Youngtown, spending their time playing bingo and the slots, then partaking of a buffet lunch or dinner before being whisked back to whence they came, never seeing the light of day at Westgate or Tanger Outlets.

Recently I received over the Indian gaming transom some  reliable estimates of what the proposed TO casino is projected to earn in revenue. The numbers are astounding. The numbers offered are not carved in stone but are reasonable estimates provided by people who would know within the industry. Estimates provided are that a new casino in Glendale would earn between six hundred million dollars and seven hundred million dollars a year in gross revenue.

It is estimated that the Tohono O’odham’s net will be half that amount (50%) or three hundred to three hundred and fifty million dollars a year. The net amount reflects the subtraction of all costs associated with O&M as well as an amount of 1% to 8% of the tribe’s gross gaming revenue to the state. To put that in some kind of perspective, it is estimated the TO will net a million dollars a day. Think about that…a million dollars a day.

Which leads to the question of why do the 32,000 members of the TO Nation average an income of $8,000 a year as Chairman Norris testified, under oath, before the Senate Committee on Indian Affairs this past week, “Most of our reservation land is located in remote isolated areas and our population is one of the poorest in the United States with average individual incomes of just over $8000.” The Tohono O’odham have 3 casinos operating in southern Arizona. Their website says, “The Desert Diamond Casino, owned and operated by the Tohono O’odham Nation, provides three exciting entertainment venues in Southern Arizona: Desert Diamond Casino (Nogales Highway), Desert Diamond Casino (I-19 & Pima Mine Rd) and Golden Ha:san Casino (Why, AZ).” It goes on to say, “The mission of the casinos is to provide the means for a better quality of life for Tohono O’odham Nation and all people in Southern Arizona.” If the TO are netting even a portion of these revenue estimates from its three southern Arizona casinos, why is part of the net not distributed to the Nation’s members by the Tribal leadership to reduce the poverty rates of its 32,000 members?        

It is widely known that 4 Glendale councilmembers directed staff to negotiate with the Tohono O’odham and the results will be discussed at their August 5, 2014 workshop. Rumor has it that the city council has negotiated something in the neighborhood of $100,000 from the TO. That’s got to be a joke. If it turns out to be true, once again, Glendale’s city council will get snookered…this time by the TO…all the while congratulating staff for their work and patting themselves on the back.

They should demand…not ask…demand a 5% payment of the Tohono O’odham’s annual net revenue earned by all of the development placed on that site. It has a nice ring to it, doesn’t it? What does 5% equal? How about $15,000,000 a year? Doesn’t that number sound familiar? It’s the same amount the city must pay annually to IceArizona under the management agreement. It would certainly go a long way to relieving the tremendous financial pressure the city faces annually as a result of that payment to IceArizona.

Are Glendale residents willing to sell their souls and bear yet another financial burden for not only a token payment but for the TO’s highly inflated numbers of temporary construction jobs and low-paying service industry jobs? Is this city council while pandering to a small number of extremely vocal residents that desperate and gullible? Is this the best that we can expect from our city council?

© Joyce Clark, 2014

FAIR USE NOTICE

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

A comment received in response to my blog entitled Situational Ethics was that the commentator had talked to Councilmember Gary Sherwood who named me as the leaker to Darrell Jackson (reporter for the Glendale Star and original FOIA requester) of the infamous Sherwood email. There can be but one response to such ignorance and idiocy. My thanks to a  friend who sent me this YouTube clip that sums up my response perfectly: https://www.youtube.com/watch?v=5hfYJsQAhl0 .

Councilmember Sherwood has responded to the allegations publicly, most notably in Darrell Jackson’s article in the Glendale Star. Here is the link: http://www.glendalestar.com/news/headlines/article_b55d0f60-1122-11e4-a1bb-0019bb2963f4.html . Let’s see what Mr. Sherwood has to say for himself, “It is no secret that I was pushing for the Coyotes,” Sherwood said by phone. “At the time we had acting attorney and city manager and a deputy city manager that we were not trusting of.” That in and of itself, is an incredible statement. Sherwood and the rest of council had enough confidence in Dick Bowers and Nick DiPiazza to appoint them as Acting City Manager and Acting City Attorney, respectively. Bowers and DiPiazza had been given direction by a majority of council (Sherwood, Martinez, Knaack and Chavira) to execute the best possible management agreement for the city with IceArizona. Bowers and DiPiazza took their obligation to craft the best deal possible seriously. Bowers, in fact, had publicly stated that he was concerned about the management fee of $15 million annually and its impact on Glendale’s precarious financial situation. Apparently this did not sit well with Sherwood, et.al. No wonder Sherwood and crew were doing an end-run around Bowers and DiPiazza by meeting with the IceArizona attorney, Nick Woods, and negotiating the deal. More situational ethics.

Sherwood goes on to say, “All of the items discussed (at the meeting with Wood) were supposed to be posted on our website; they just got delayed in posting.” That is no excuse for divulging Executive Session material. Sherwood’s expectation that it would eventually be publicly posted was not a valid rationalization for his giving Executive session material to Woods. More situational ethics.

Sherwood explains his direction to Martinez to delete the email by saying, “That last line was damning to look at, it was just for information.” He goes on, “Manny had no personal e-mail account, that (to delete) was for his benefit. I just wanted him to be careful so I just suggested he delete it.“ If the email had been appropriate to begin with, there would be no need to instruct Martinez to delete it. More situational ethics.

Sherwood’s dismissive attitude is reflected in, “We have had so many things go to the AG and it is another thing for them to look at. I just don’t see anything becoming (sic) of it.” He may be the only person on the planet to feel this way. The allegations of Open Meeting Law violations are serious this time. He practically calls out the Attorney General’s Office as being ineffectual.

Lastly, Sherwood says, “…he feels that this is a personal attack and was upset with the way it is being handled.” Why? Because he wasn’t given advance notice that a complaint was being filed? Welcome to the world of politics.

It is no secret that Gary Sherwood’ ambition is to become the next Mayor of Glendale. After all, since he was elected as a councilmember he has repeatedly tried to assume that role usurping Mayor Weiers at every available opportunity. It is also no secret that he can be extremely arrogant and rude. It has been demonstrated numerous times in his manner of response to citizen public hearing comments at council meetings. For example, his reaction to citizen comments on the billboard issue was to dismiss their lack of knowledge on the issue and to berate the numbers of anti-billboard attendees.

Many find it creditable to believe that Sherwood lined up four votes for an approval of the IceArizona contract. There has been rampant speculation for over a year that he and Chavira traded votes. Chavira would vote for the management agreement if Sherwood would vote for the casino. Coincidentally, Sherwood who ran on a platform of opposition to the casino flip-flopped and came out in favor of the casino in August, 2013, after the vote on the arena management deal. Many also believe that Sherwood was taking the lead and personally negotiating the arena contract and side-stepping the responsibilities of Glendale’s senior management. At that time he made public statements in media interviews which he used to portray himself as taking the lead position.  Is it any wonder that his actions are now under scrutiny?

It’s also no secret that many have expressed concern that Sherwood may have used the same tactics to secure a very recent council majority vote (Sherwood, Chavira, Alvarez and Hugh) of support for the proposed Tohono O’odham casino. That meeting appears to have been choreographed by the same 4 majority councilmembers who voted in the affirmative. Did they collude prior to the meeting causing yet another Open Meeting Law violation? I don’t know but I suppose over time we will all find out. A spider’s web of deceit and deception seems to be the hallmark of this council – a notion troubling many Glendale residents.

© Joyce Clark, 2014

FAIR USE NOTICE

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

Yesterday’s blog entitled “Please delete this email after you read it” regarding Councilmember Gary Sherwood’s email resulting in an allegation of violation of the state’s Open Meeting Law created quite a bit of controversy rippling through the Coyotes world, Glendale’s political world and even the journalistic world. I suppose the reaction from the Coyotes world is the most predictable.  As anyone would expect, the Coyotes fans are fiercely loyal and anything that raises the specter of the disappearance of their team from Glendale sends them into overdrive. Their first reaction is to kill the messenger. In this case that includes not only me but Mayor Weiers, the Glendale Star and the Arizona Republic.  They denigrated Mayor Weiers for outing actions that may prove to be illegal. They gnashed their teeth over my blog and the newspapers’ articles because they perceived the information as yet another hit on their beloved team.

What they fail to recognize is that while the 4 councilmembers’ actions preceded a vote on the Coyotes deal, those actions could have preceded any council vote on any issue.  The troubling issue for many people is not the outcome of the vote but rather the actions that preceded and led up to the vote. The allegation is not about the Coyotes. The allegation is about improper behavior by 4 councilmembers. An investigation by the AG’s Office will surely answer the question, did they collude behind closed doors prior to the vote? Did they conduct city business secretly to assure a positive vote? Why speak to the issue of a possible Open Meeting Law violation when instead fans can deride the messengers? Why is it alright to dismiss possible illegal behavior because it is associated with a vote on the Coyotes deal? It’s a case of situational ethics.

The reaction from the Glendale political world is also predictable. It was learned that when the email first came to light, Vice Mayor Knaack denied attending the meeting. However, that would never do and would not last long. It would have had Sherwood and Knaack as adversaries; something they can ill afford right now. Today, the explanation given is that Sherwood and Knaack were in the same car when they received a cell phone call from Woods. Two things are questionable about this scenario. Where was Sammy? After all, Sherwood in his email says, “Sammy is already on board as he was with us last night.” Even if you can swallow this car explanation, it doesn’t make the allegation go away. The Open Meeting Law says, “Splintering the quorum can be done by meeting in person, by telephone, electronically, or through other means to discuss a topic that is or may be presented to the public body for a decision.” Note that they are not denying the basis of the allegation. Are they trying to muddy the waters by responding to minutia such as where they were when the meeting of the 3 and Woods took place? It’s another case of situational ethics.

The reaction from the print world can only be described as fascinating. Yesterday afternoon, July 21, I received a phone call from Paul Giblin, an Arizona Republic reporter. He proceeded to express his offense that I dared to say that I had scooped reporter Peter Corbett and the Arizona Republic.  He opined that my writing was done on the back of Peter Corbett who had made the FOIA request. He said that my journalistic standards were not as high as that of the Arizona Republic’s, and ended by saying; enjoy writing your little blog.

Later that day, I learned that Darrell Jackson of the Glendale Star had made the same kind of FOIA request. Who made the first request?  Update: July 23, 2014. I learned today that Darrell Jackson made the original FOIA request over 2 weeks ago. Did Peter Corbett do his story on the back of Darrell Jackson? Isn’t it weirdly coincidental that 2 reporters made the same FOIA request? Even more interesting is who tipped them off to the Sherwood email and why? What was the source’s motive for doing so? Situational ethics once again.

As for journalistic standards…hah…that’s like the pot calling the kettle black. Arizona Republic readers have complained about the perceived bias in this paper’s stories for years; to the point that it has become legendary.   Paul Giblin’s outrage is much ado about nothing. More situational ethics.

© Joyce Clark,

2014 FAIR USE NOTICE

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

Sherwood signatureVery recently I received this email over the Glendale city hall transom. It was produced as a result of a Freedom of Information Request. It is an email sent by Councilmember Gary Sherwood to Councilmember Manny Martinez and Jeff Teetsel (IStar manager of Westgate). It was sent on June 29, 2013 approximately one week before a majority of the Glendale City Council voted to accept the $15 million a year management agreement with IceArizona.

The main figures in the Glendale cast of characters at that time were: Mayor Jerry Weiers, Vice Mayor Yvonne Knaack, Councilmembers Martinez, Hugh, Alvarez, Chavira and Sherwood. The Acting City Manager was Dick Bowers and the Acting City Attorney was Nick DiPiazza. Nick Woods represented IceArizona in contract negotiations for management of the city’s arena.

SherwoodtoMartinezJune292013_Page_1 Blog

Sherwood email to Martinez

 

 

 

 

The actual email is pictured to the left but the text reads as follows:                                                                                       To: Martinez, Manny; Jeff Teetsel                                                     From: Sherwood, Gary                                                                                                                                                    RE: Out Clause and Risk Topics

“Yvonne and I spend over an hour with Nick Woods last night and out of the three concerns from what I shared with Nick after our e-session yesterday (as of 7:45p, Nick has not seen the city’s revised draft which was promised right after we got of e-session nor had it been posted to our website – consequently both happened by 8:45p) two were okay with the city and had to deal with the errors the city made — #1, we don’t own the 5500 parking spots we’re proposing to charge for therefore it must be a license agreement and not a license agreement  (sic) #2) since the bonds that are held against the arena are tax exempt – only a governmental agency can hold those bonds so some different language has to be brought in – city agreed with that. The third item is problematic in that it is against the NHL for cities to hold out-clause and none of the other 29 cities have one. That would allow the city to just kick the team out, where would they play, what if in the middle of the season.

“I don’t have the time to get into all the details but I’ve known Nick Woods for a long time and know him to be a trusted friend and right now I can’t turn my back away from anyone in the city manager’s office or out (sic) acting city attorney.

“Manny, I’ve got a booked day with two Habitat for Humanity events, three radio interviews and two TV spots so contact Yvonne for details of our conversation. Sammy is already on board as he was with us last night.

“Thanks for hanging in there!

“Manny – please delete this email after you’ve read it.”

Thanks,

Gary D. Sherwood

There are several issues of grave concern with this email. The most serious is a possible violation of the State’s Open Meeting Law.  The following is taken from the AG’s office explanation of one section of the Open Meeting Law:

 “7.5.2 Circumvention of the Open Meeting Law.Discussions and deliberations between less than a majority of the members of a governing body, or other devices, when used to circumvent the purposes of the Open Meeting Law violate that law. See Ariz. Att’y Gen. Op. 75-8; Town of Palm Beach v. Gradison, 296 So. 2d 473 (Fla. 1974). Public officials may not circumvent public discussion by splintering the quorum and having separate or serial discussions with a majority of the public body members. Splintering the quorum can be done by meeting in person, by telephone, electronically, or through other means to discuss a topic that is or may be presented to the public body for a decision. Public officials should refrain from any activities that may undermine public confidence in the public decision making process established in the Open Meeting Law, including actions that may appear to remove discussions and decisions from public view.”

What the explanation above means is that there are to be no private discussions by a majority (4 councilmembers or more) of the governing body if the topic of the discussion is about a matter to be voted upon by the city council. The IceArizona contract was voted upon one month later. The law also prohibits an elected official (councilmember) from acting as a “go-between,” relaying a position on an issue to be voted upon from one councilmember to another.  Sherwood’s email shows him relaying information to Martinez he had discussed the previous night with Nick Woods, Knaack and Chavira. That action is known as “daisy-chaining.”

Sherwood, Knaack, Martinez and Chavira were the 4 affirmative votes for the IceArizona contract. All four could be considered equally culpable of a possible violation of the Open Meeting law by discussing/negotiating elements of the Coyotes contract amongst themselves, privately, when it was soon to come before them for a public vote… all the while excluding the remaining 3 councilmember: Weiers, Hugh and Alvarez.  

Another alarming admission by Sherwood in this email is that he shared Executive session material with Nick Woods. The city was negotiating with IceArizona. The ad hoc discussion between Sherwood, Knaack and Chavira and Woods may have harmed or weakened the city’s position. City contract negotiations are a direct managerial responsibility of the City Manager and City Attorney. Could this action be a violation of the city’s charter? We’ll explore this topic in the next blog.

Every councilmember knows of the prohibition about not sharing E session material. Doing so is a very serious violation of the Open Meeting Law. Sherwood says quite clearly in his email that is exactly what he did with Nick Woods and then attempts to minimize the violation by characterizing Woods as a friend. It makes no difference. E session material is not to be shared with anyone…even friends or family.

It seems that Sherwood was putting pressure on Acting City Manager Dick Bowers and Acting City Attorney Nick DiPiazza to get the IceArizona deal done…quickly. We know that Mr. Bowers publicly addressed the $15 million a year IceArizona (at that time IceArizona was called Renaissance) contract and voiced concerns about Glendale’s fiscal health if it were approved at that figure. In a June 23, 2013 Dick Bowers memo to city council he said, “Contrary to what might appear in the papers I don’t see this as a ‘done deal’. Far from it.” He went on to say, “I cannot shake the concern for the level of risk expected to be borne by the city…I keep coming back to that same level of discomfort of Glendale having all of the risk in this deal.” Clearly Bowers had substantial concerns and it is not unreasonable to think that Sherwood was advising Bowers that he had the four votes needed to approve the deal.

From this email we can see who was talking to who privately about this issue. Sherwood seems to have taken the lead and all 4 councilmembers may have been negotiating collectively yet privately with IceArizona’s attorney. He acknowledges Knaack and Chavira as participants in his meeting with Nick Woods. He then sent his summary email to Martinez.

names                                                

Why did Sherwood ask Martinez to delete his email after reading? It appears to be tantamount to an admission that its contents should not have been memorialized.  There are so many questions and so few answers. Is it possible that Sherwood asked Martinez to delete his email because he realized he was “daisy-chaining?” Did Martinez delete this email as requested? Maybe…maybe  not, leading to its discovery now, over a year later.

Sherwood’s email and his comments within it warrant an investigation by the Attorney General’s Office to determine the validity of Open Meeting law violation allegations sure to arise as his email becomes more and more public. At this point, Sherwood’s email raises a lot of questions. I suspect that it may generate many citizen complaints to the AG’s Office. From my years of experience on council, it looks like a “smoking gun,” written by Sherwood himself that implicates him and 3 other councilmembers in possible Open Meeting Law violations.

So, for all those citizens who spoke in favor of or against the Coyotes deal the night council voted on the matter, it was in vain. It appears that 4 councilmembers, Sherwood, Knaack , Martinez and Chavira, had already made their minds up and shared their positions with one another at the end of June, 2013.

Update 1:00 PM. I am pleased to report that I have scooped the Arizona Republic. At 11:16 AM I published my blog on the Sherwood email. At 12:30 PM Peter Corbett, a reporter for the Arizona Republic released his story on the same Sherwood email. Here is the link:

http://www.azcentral.com/story/news/local/glendale/2014/07/21/glendale-mayor-council-members-violated-open-meeting-law/12956523/ . I knew Corbett had made the FOIA request for said email but I was perplexed because there was no Arizona Republic story. I was beginning to think someone had quashed it.

Mayor Jerry Weiers is considering filing a complaint with the AG’s office. If after reading this blog and Corbett’s article, you think Mayor Weiers should file a complaint, please send him an email at: jweiers@glendaleaz.com and let him know you support such an action.

© Joyce Clark, 2014

FAIR USE NOTICE

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

 

On Tuesday, July 15, 2014 the Glendale city council held a special meeting. It was posted the required 24 hours in advance of the meeting but other than knowing that the topic would be the casino, the posting was generic. Let me make clear I oppose the proposed casino. I have from the first moment in 2009 when the Tohono O’odham (TO) announced they were coming until this day and beyond.

We now know why this special voting meeting was called. There was evident panic in the pro-casino ranks of Councilmembers Alvarez, Hugh, Sherwood and Chavira. The public cover (read excuse) they used for calling the meeting was that the Department of the Interior recently approved taking TO land into trust (blessing it as a reservation). What really has them steamed is that Mayor Weiers has been invited to testify before the Senate Committee on Indian Affairs about off-reservation gaming on July 23, 2014. It was a blatant, back room  attempt to make him toe the city line and support the proposed casino. That was the “gang of four’s” real agenda. There is another element that needs to be considered. The Primary Election. There is every possibility that the majority in favor of the casino could become the minority, especially if Alvarez loses her council seat (a distinct possibility).

There should be some real concern among the public about the orchestration of this special meeting. The four majority vote councilmembers obviously got together and orchestrated this charade. Everyone should be asking, just how much conversation was there between them and was any portion a violation of the state’s Open Meeting Law? They, to a person, repeated each other and called for a new council resolution rescinding Council Resolution 4246 and asking for a declaration of support for gaming on the reservation land.  They obviously were all on the same page and had decided in advance exactly what the strategy and outcome were to be.

It was evident that the four, as a majority, called for the meeting without consultation with the minority. There was obviously a deliberate lack of communication with the 3 minority voting councilmembers. Obviously they were not included in any discussion about this special meeting. In fact, Mayor Weiers stated that he was on vacation and no one bothered to check his schedule for his availability. Vice Mayor Knaack made it clear her attendance was “under protest” and Councilmember Martinez called the meeting “inappropriate.”

Mayor Weiers has the legal right to oppose the proposed casino before this Senate Committee as long as he makes it clear that his comments are personal and do not reflect the city’s newly adopted position.  I sincerely hope that he takes this opportunity to express in the strongest terms possible, the many reasons why this casino is not good for Glendale.

Mayor Weiers made it clear that he was not happy with the process that was occurring and he stated unequivocally that “what is happening is wrong.” He said the entire process was rushed and it was — but now we know why. He reminded everyone that council has a history of making bad decisions when it is rushed.

Vice Mayor Knaack agreed that the entire process was rushed and could have waited until council reconvened in August. Ahhh, but then the majority pro-casino contingent would not have had the opportunity to try to muzzle Mayor Weiers before he testifies before that Senate Committee. She believes that a casino within Glendale will destroy the voter approved Arizona gaming compact passed in 2002 and it will.

Councilmember Martinez said that the council actions could jeopardize any leverage the city might have with regard to negotiations with the TO. Vice Mayor Knaack expressed the same concern and asked, “Will the action today impact the city’s ability to negotiate the best deal possible with the TO?” That finally stopped “the four” and they acceded to going into Executive Session. Apparently whatever they learned from the City Attorney in that E Session was not persuasive enough to dissuade any of the predestined, determined and blind action of the four.

Two comments were made of note. Arthur Thruston, a Glendale Gadfly, said there was nothing wrong with the manner in which the TO had purchased the land. As a reminder, it was purchased by a shell corporation of the TO back in 2002 and kept secret for 7 years, until 2009. Thruston likened it to Intel or any other large corporation buying land before announcing their new location. OMG…Thruston needs to get real. It is not typical for a corporation to wait 7 years between its purchase and announcement.

Councilmember Sherwood again reiterated that all of the businesses in Westgate are just hunky dory at the prospect of the proposed casino. He used the analogy of a hamburger stand on a corner saying, when another hamburger stand locates nearby it creates synergy and each stand will have more business. That’s fine as far as it goes. What if both stands produced hamburgers that tasted equally well but the new stand sold its burgers for less – a lot less? Did it ever occur to him that if both hamburger stands produced hamburgers of equal quality and taste the public would always choose the cheaper product? Voila! Does that make the situation the Westgate area businesses face from the proposed casino clearer?

Predictably Resolution 4828 New Series passed by a vote of 4 to 3.  It has 3 elements: repeal of Council Resolution 4246; support for gaming on the TO land; and direction that this resolution is sent to the entire Congressional delegation. Alvarez, Hugh, Sherwood and Chavira in the affirmative. Weiers, Knaack and Martinez in the negative. Alvarez has finally paid back the TO for their independent expenditures on her behalf. Now they will owe her more in this election.

The seminal question is this: How can anyone possibly trust anything the TO agrees to in its negotiation with Glendale? They kept secret purchase of the land in Glendale for 7 years. They back stabbed their sister Tribes by flagrantly violating the Arizona gaming compact. If you are not dissuaded by their past actions, I have bridge in Brooklyn to sell to you.

This action by council has stirred me to act. I am writing a letter to the entire Congressional delegation repudiating this council’s Resolution. I encourage any reader who is dismayed by this council’s recent policy decision to take the time to write as well.  A trickle of opposition, when joined with one another, becomes a stream and eventually a mighty river. It’s time for Arizona’s delegation to learn there is a mighty river of opposition to the proposed casino.

© Joyce Clark, 2014

FAIR USE NOTICE

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

I had just finished writing this blog when I received 2 robo calls. The first one was from the Arizona Free Enterprise Club announcing it was seeking petition signatures to put the city council’s affirmative decision to eliminate the sunset provision of the temporary sales tax increase on the ballot. In the call they announced that they would be at the Foothills Recreation Center and the Glendale Main Library this weekend from 9 AM to 5 PM both days gathering signatures to get it on the ballot. I wish them success. I will make a special point of going to the Main Library this weekend to sign their petition.

The second robo call was several hours later and it was from the Glendale Fire Union urging people not to sign the petition and promising dire consequences if the sales tax increase is sunset in 2017. Everyone acknowledges that Glendale’s debt burden is unsustainable. Perhaps it would be more productive if the Fire Union got behind an effort to urge reduction of the city’s debt by selling some of its assets. It would make the entire sales tax sunset issue a moot point. 

The battle lines are drawn. Voters will be fed misinformation and exaggeration from both sides. They will have to wade through the claims and counter claims made until their eyes are crossed. Will voters decide to send a strong message of austerity to the city council or will they decide Glendale cannot continue to exist without a permanent sales tax increase? It looks like the voters of Glendale will be given the opportunity to ultimately decide the issue. Which side will be more successful in activating their voter base? It’s fair to say that the Sales Tax Sunset Elimination War is officially declared. Now…on to the rest of this blog.

The June 24, 2016 city council meeting had two major items not yet reviewed in my blog. One was the passage of Ordinance 2897 removing the sunset provision from the sales tax increase. The other was Ordinance 2899 eliminating city permitted events from the requirements of the city’s noise ordinance.

The elimination of noise provisions for city permitted events is a city-wide ordinance. If there is a city permitted event in Sahuaro Ranch Park, it applies. If there is a city permitted event at Arrowhead Mall, it applies. It does not affect just the residents adjacent to Westgate. It was approved unanimously by city council. Councilmember Chavira, representing west Glendale and the area of Westgate, had no qualms about throwing his residents under the Glendale bus. Perhaps it is time for the voters of his district to question his representation of them, their concerns and their interests.

Sam Allen, Code Compliance Director, also neatly side-stepped a question about the number of previous noise complaints in the Westgate area by saying he did not have that figure as noise complaints are handled by the police department. There were allusions by staff that neighborhoods would remain protected but no specifics as to how that would be accomplished.  Another question asked was how many events declined to locate in Glendale as a result of the city’s noise ordinance? That, too, was deftly ignored.

Ken Sturgis, a citizen commentator, said that he lived .8 of a mile away from Westgate and often heard Westgate event noise within his home. His neighbors heard it as well but felt that the city would do nothing about it. I live a mile away from Westgate and heard noise but not at the same level of intrusion that neighbors living closer to Westgate would have heard. So, in the name of flexibility and competiveness, all neighborhoods throughout Glendale have lost all protection from city permitted event noise. They will experience sound and fury…signifying nothing.

The other ordinance, passed on a 4 to 3 vote (with our usual 4, Knaack, Martinez, Sherwood and Chavira in the affirmative), was the elimination of the sunset provision of the sales tax increase. I was the councilmember who originally insisted it be a provision of the sales tax increase. I did not offer that stipulation on a whim. It was the only way I could support the increase. I trusted and relied upon my fellow councilmembers to keep their word. Little did I know that their acceptance of the sunset provision was done with fingers crossed behind their backs.

Barrel district council candidate Randy Miller spoke to the issue and said the two options, making the sales tax increase permanent or utilizing draconian cuts, were not the only options available. Mayor Weiers agreed and that was the basis of his “no” vote. Mr. Miller said there is always an Option 3 and crafting it should be the goal.

At the time of the passage of sales tax increase with the sunset provision senior staff offered a plan to gradually absorb the $25 million in the temporary sales tax increase by making incremental cuts of $5 million a year over a 5 year period. The first signal that council would not have the fortitude to make the necessary cuts over 5 years was when they could not even accept privatization of custodial maintenance of city buildings. That decision sent a message, loud and clear, to senior staff that making the necessary spending cuts over 5 years was a council non-starter.

I marvel at the city’s propensity and adroitness in propagandizing the issue.  Knowing that the Arizona Free Enterprise Club (AFEC) is currently circulating a petition to get the council’s vote for elimination of the sunset provision on the ballot, senior staff slipped in a new concept.  The sales tax increase will be reviewed during the budget process each year. Be careful what you wish for. It would be ironic indeed if, at the next budget discussions in the spring of 2015, council decided to raise the sales tax increase. After all, Councilmember Sherwood publicly stated that he believed it would be necessary.

The offer of sales tax increase review every year was strategically offered to mitigate the anger of Glendale voters should the AFEC be successful in getting the question on this fall’s ballot. The city will be holding out the hope that the increase has a chance of being reduced or going away in the future. Maybe after we’re all dead.

The city assertion flies in the face of the fact that the bond rating agencies are taking a close look and relying upon the elimination of the sunset provision to satisfy them. The bond rating agencies will again be very concerned about Glendale’s financial stability when they realize that now the sales tax increase stands an annual possibility of reduction or elimination. By adding this provision of annual review the stability that the bond rating agencies rely upon has been removed.

Another mitigation strategy that the city is already employing is on its website under Frequently Asked Questions about the elimination of the sunset provision. Here is the link:http://www.glendaleaz.com/documents/FAQEliminationofSunsetforTempTax062514.pdf .

The city’s message is that dire consequences will occur should the tax sunset in 2017. They used the same strategy years ago when a group of us nearly got the elimination of food sales tax on the ballot. The city prepared a slick pamphlet asking Glendale citizens to choose what cuts they would be willing to make. All choices were dire and it scared the voters. It worked that time and sadly, it may work this time.

If the Arizona Free Enterprise Club is successful in acquiring the requisite number of signatures to get the question on the fall ballot, don’t buy into scare tactics this time. It’s time for Glendale voters to send a direct message to council and senior management staff. That message is, live within your means. Don’t spend more than the city receives in revenue. If 22% of the budget is devoted to the debt burden, tell them it is their job to reduce the debt.

Which brings up the question, can Camelback Ranch, the Media Center, the Parking Garages, the Convention Center, the Civic Center or Jobing.com arena be sold? I’m not an attorney but I would say “yes.” Many years ago as a small business owner, my landlord sold the building in which I was a tenant. The new landlord and I could not come to mutually agreed terms. When my lease expired I did not renew. I left that location.

Glendale owns these buildings and has the right as landlord to sell them. Tenants in any of these sites would then have to negotiate new lease terms with the new landlord. Glendale may lose some money by selling at present market value but it would remove the debt and/or the O&M costs associated with the asset. Glendale must get its debt burden under control. Right now it is over 22%. It should be under 10%. If Glendale cannot afford these assets, selling them seems to be a prudent course of action.

There are those who will immediately say, we can’t do that. Instead, council direction should be given to the city attorney to make it happen. The city simply cannot continue down this unsustainable debt burden path forever.

There are those who will say, what’re you… nuts? The city can’t do that! It reminds me of something Councilmember Hugh said at this council meeting. He said, paraphrased, that the current council is fractured because its members do not share the same strategy for curing Glendale’s financial situation. Each side believes it has the better path and the right path to solve Glendale’s fiscal crisis.

I have no doubt that the councilmembers love this city. They demonstrate it daily by their service. Unfortunately, a majority believe the only solution is to tax the city out of its financial crisis. The minority believes that there are other choices, painful, yes… but other choices.

It has been my honor and a great privilege to have served as a Glendale councilmember for 16 years. I have lived in Glendale for nearly 50 years. I love this city. You love this city. It is our home. Placing a greater and greater tax burden on those who live in this home, is not prudent…and it sure isn’t the best way to grow Glendale.

© Joyce Clark, 2014

FAIR USE NOTICE

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