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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.

  March 28, 2015….17 years and 86 days without a West Branch Library

It’s week five and once again you are asked to choose the photo of the correct councilmember. My readers are pretty sharp people who keep up with Glendale issues and events. So it stands to reason that you would have no trouble in selecting the correct photo. The mayoral selection that ran the first week was a roaring success with nearly everyone picking the right photo.

The choices for Councilmember Aldama were nearly as high. 82% or 40 votes were correct in choosing photo # 3. However,  16% or 8 votes were for # 2 and 2% or 1 vote for # 1.

Two weeks ago you were asked to pick out Councilmember Chavira. 92% or 33 votes were correct in choosing photo #1. There were 3 votes (8%) for #3.

Last week you picked out the correct photo, number 3, of Vice Mayor Hugh with 38 votes or 88%. There were 3 votes or 7% for number 3 and 5% or 2 votes for number 1.

This week you are asked to choose the correct photo of Councilmember Bart Turner. Here are your choices:

Number 1

Number 1

BartTurner 2

Number 2

Number 3

Number 3

© 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.

Earlier today, March 27, 2015 I made a Public Records Request for information relating to an allegation that Assistant City Manager Julie Frisoni may have violated the state’s Conflict of Interest law. Before the close of business today I received the information I had requested. I want to publicly thank Darcie McCracken, Deputy City Clerk, for the excellent and immediate service I received.

The information I received begins with a letter dated February 11, 2014 sent by Frisoni to Michael Bailey, City Attorney and copied to Jim Brown, Director of Human Resources and to then City Manager Brenda Fischer. In her letter she stated that Councilmember Alvarez had been harassing her and creating a hostile work environment for a month. She stated, “This merchant (from Glendale) told our staff today that CM Alvarez told him that I was going to be fired because of my unethical dealings in relation to purchases from a company that my husband works for.” She went on to say, “My understanding is that she (Alvarez) is violating the council code of ethics, as well as the council code of conduct.” She asked for an immediate investigation to remedy the situation and to be advised of the next steps.

Two days later, February 13, 2014 Brenda Fischer sent an email to Frisoni and copied Jim Brown and Michael Bailey. Fischer indicated that after receiving a councilmember complaint she directed Bailey to “research this matter” and based upon Bailey’s review she considered the matter closed. She attached a memo from Bailey with his conclusions. Bailey’s February 13, 2014 memo said, in part, “From his (Shumway) job title, he does not appear to be involved with public sector sales. Based on this cursory review, I did not find any information to indicate that Mr. Shumway was involved with or benefitted from Glendale’s contracts with Insight Public Sector.” He went on to say, “We were not provided nor discovered any evidence suggesting a conflict of interest. Please note that this review was cursory in nature; a more formal review and opinion would require information that isn’t publicly available.”

Fischer’s and Bailey’s conclusions are troubling because of the perceived lack of due diligence by Bailey in investigating the allegation. He said, “On-line information indicates that Mr. Shumway is vice president, information systems-application development at Insight.” He stated, “Based on this cursory review, I did not find any information to indicate that Mr. Shumway was involved with or benefitted from Glendale’s contracts with Insight Public Sector.” As you can see, Bailey appeared to have done on-line research and used that as the basis of his legal opinion. There also seems to be a lot of CYA on Mr. Bailey’s part with words such as “my understanding is” and it “appears.” As any good “jail house attorney” knows, those are wiggle room words. However, a February 20, 2014 letter by Frisoni to Jim Brown and copied to Fischer and Bailey indicated that she was satisfied and stated, “I am satisfied with the current action that has been taken…”

Hold on…not quite so fast…On March 3, 2015, a year later, Councilmember Bart Turner sent an email to Mayor Jerry Weiers, Acting City Manager Dick Bowers, City Attorney Michael Bailey, Vice Mayor Ian Hugh and Finance Director Tom Duensing. Prior to voting on the issue of a payment increase in the Insight contract he asked for an explanation of, “it appears that the increase in the contract is significantly higher than the base ($138,000) without any explanation for what we receive for the additional expenditure.” He made clear that he was not accusing Frisoni of any conflict of interest. He then stated, “In reviewing the conflict of interest disclosure file at the City Clerk’s office I notice there is no non-conflict statement on file from Ms. Frisoni as there are for several other city employees who may have a perceived conflict of interest due to family or personal ties to city business.” There is the answer we were seeking. Ms. Frisoni did not file a Conflict of Interest Disclosure about her husband’s company bid on and securitization of a multi-million dollar contract from the city.

Three days later, on March 6, 2015, Frisoni asked for specific statements attesting to her non conflict of interest. Director of Finance, Tom Duensing specifically asked Chuck Murphy, Chief Information Officer if Frisoni improperly influenced the Insight Public Sector bid. Murphy attested to the fact that it did not occur. Duensing did not offer any assurance. Frisoni then sent their emails to the City Clerk’s office.

Apparently Bailey requested a statement from Frisoni. In response on March 11, 2015, she sent an email to Bailey. Her opening stated, “Pursuant to your request, I am providing information regarding my association with Insight…” It appeared that this email was requested by Bailey to tie up loose ends in an effort to counter and to satisfy Councilmember Turner’s observation that Frisoni never signed a Disclosure. As an addendum within Arizona Revised Statues, Chapter 8, Conflict of Interest there is a specific Disclosure form provided. To this day she has not signed one. She should have erred on the side of caution, given her position within the city’s senior management, of signing such a form. It’s a good thing that she didn’t sign one now and backdate it. We all remember a previous backdating by 4 councilmembers, Eggleston, Martinez, Frate and Goulet that resulted in indictments for them and City Clerk Pam Hanna…all of which were dismissed on a technicality.

Frisoni said over and over in her correspondence that she did not influence or interfere with the City’s bid process and that appears to be true. But it doesn’t answer the question of whether or not she gave advice on that specific bid process to her husband to be passed on to Insight’s bid team. That we will never know.

Frisoni, through her actions, probably earns a zero for ethics. Even though it seems apparent that neither she nor her husband immediately benefitted financially from a successful bid, that’s not the point. It’s a matter of doing the right thing even if no one notices or acknowledges it. In a situation offering even the slightest perception of conflict it would have been prudent of her to disclose that her husband works for a company involved in a very lucrative bid with the city. It would not have hurt anything and would have enhanced her ethical standing. Many people are of the opinion that’s just not her style.

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

Peter Corbett in the March 26, 2015 edition of the Arizona Republic had a story entitled “Glendale assistant city manager resigns.” Here is the link: http://www.azcentral.com/story/news/local/glendale/2015/03/26/glendale-assistant-manager-resigns/70490792/ . He leads the story by saying, “A top Glendale manager resigned this week in the wake of questions about a computer contract that had been reviewed more than a year ago.”

One month after City Manager Brenda Fischer was hired she appointed Julie Frisoni as an Assistant City Manager in August of 2013. Frisoni’s husband, Jeff Shumway, is a Vice President of Insight Enterprises, Inc. the parent company of Insight Public Sector, Inc. In late 2013 after an RFP had been issued the city accepted Insight’s bid and entered into a multi-year, multi-million dollar computer contract. A year ago, in January of 2014, when Norma Alvarez was still a Glendale city councilmember she raised the question of a conflict of interest on the part of Frisoni. Michael Bailey, Glendale’s newly hired City Attorney and friend of former City Attorney Craig Tindall (Tindall and Frisoni were close friends), reviewed the allegation and according to Corbett, “City Attorney Michael Bailey reviewed six contracts with Insight and determined in February 2014 that Shumway did not sign any of the documents nor was he part of the company’s sales team.” Apparently that was the extent of Bailey’s review of the allegation of a conflict of interest. It appears to have been marginal and tailored to produce the desired result.

What does Arizona law say about conflict of interest?

8.2 The Arizona Conflict of Interest Laws. State statute provides in pertinent part:

  1. Any public officer or employee of a public agency who has, or whose relative has, a substantial interest in any contract, sale, purchase or service to such public agency shall make known that interest in the official records of such public agency and shall refrain from voting upon or otherwise participating in any manner as an officer or employee in such contract, sale or purchase.
  2. Any public officer or employee who has, or whose relative has, a substantial interest in any decision of a public agency shall make known such interest in the official records of such public agency and shall refrain from participating in any manner as an officer or employee in such decision.”

Arizona’s conflict of interest law centers on the concept of “substantial interest.” Substantial interest, for purposes of this law, refers only to a financial interest. In other words the public officer or employee of a public agency or relative must receive financial benefit. In strictly interpreting Arizona’s conflict of interest law, neither Frisoni nor her husband, Shumway, violated the law.

But…perception is reality often times. Julie Frisoni with her 12 years of employment with the City of Glendale wrote and reviewed many, many RFPs. She would have the knowledge required to write a successful RFP and would also have the knowledge, knowing Glendale’s financial condition, of what would be a successful dollar amount to request. Did she share that knowledge with her husband? That is your decision to make.

A successful award of the contract to Insight did not benefit Frisoni or her husband financially and therefore conflict of interest laws were not violated but were there other ways to benefit? Did Shumway benefit in greater status and clout within the company? Did the award by Glendale give him a leg up on the Insight corporate ladder that could result in a future promotion and a larger salary? Who knows? I don’t but that’s the kind of speculation that becomes rampant in this kind of situation.

What is apparent is although it appears to have been all above board it smells bad. It does raise a question. Did Frisoni sign a Conflict of Interest Disclosure? According to state law, 8.7 Disclosure of the Interest. Every political subdivision and public agency subject to A.R.S. §§ 38-501 to -511 must ‘maintain for public inspection in a special file all documents necessary to memorialize all disclosures of substantial interest made known pursuant to this article [A.R.S. §§ 38-501 to – 511].’A.R.S. § 38-509. Any public officer or employee who has a conflict of interest in any agency decision or in the award of a contract must provide written disclosure of that interest in the agency’s special conflict of interest file. A.R.S. § 38-503(A), (B). The officer or employee may either file a signed written disclosure statement fully disclosing the interest or file a copy of the official minutes of the agency which fully discloses the interest. A.R.S. §§ 38-502(3), -509.” I have filed a Public Records Request today to see if Frisoni did indeed sign such a disclosure. What if it is discovered that Frisoni did not file a signed disclosure statement? The penalty could be as severe as a class 5 or 6 felony.

Another part of state law relates to doing business with the public agency with which the person was employed and states, 8.11 Representation of Others After Leaving Public Service. State law also places restrictions on representation of others when a public officer or employee departs from state service. In particular, A.R.S. § 38-504(A) provides:

A public officer or employee shall not represent another person for compensation before a public agency by which the officer or employee is or was employed within the preceding twelve months or on which the officer or employee serves or served within the preceding twelve months concerning any matter with which such officer or employee was directly concerned and in which the officer or employee personally participated during the officer’s or employee’s employment or service by a substantial and material exercise of administrative discretion.” This sanction is clear cut. It remains rumored that Fischer and Frisoni are going to partner in their own communication agency. According to this provision neither one can do business or represent a client doing business with Glendale for 12 months. Since both were senior management it is reasonable to acknowledge that each was “directly concerned or personally participated” on every conceivable issue within the city.

So, faithful blog readers, it appears that Frisoni and her husband, Shumway did not violate the Arizona Conflict of Interest law. What about the spirit of the law?

© 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

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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

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March 19, 2015….17 years and 78 days without a West Branch Library

Please note: From now on my header will contain the length of time West Glendale has been waiting for its long promised library.

It’s only been a few weeks since former City Manager Brenda Fischer resigned and her “publicists” remain hard at work. I have no doubt there will be more positive stories planted in the local media about the “great job” Fischer did in her 17 months in Glendale.

On March 13, 2015 Eric Jay Toll authored an article entitled “The two sides of the Fischer-Weiers split” in the Phoenix Business Journal. Unfortunately unless one has a paid subscription one cannot read the entire article as the website only posts a paragraph or two. As luck would have it, my neighbor does subscribe and gave me his copy.

There was one very notable quote in the article. “Brenda Fischer was good to employees, and she was good for business in the city,” said Glendale Firefighters Association President Joe Hester. “When she left, it was an extreme disappointment. I’ve worked with a number of city managers and she was the first one I’ve worked with who was fully transparent, operated with integrity and had a word that could be trusted.”

Is Joe Hester implying that Interim City Manager Dick Bowers is not “fully transparent,” does not “operate with integrity” and his word is not to “be trusted?” After all, Hester states categorically that she was the first city manger that he worked with who embodied those qualities. Dick Bowers, former City Manager of Scottsdale for many years, is a person with an impeccable reputation of the utmost integrity, transparency and trust. If I were Mr. Bowers I would be none too happy with Mr. Hester’s remarks.

Hester has only been President of the Glendale Firefighters Association for a few years. As president of the union he did not work with Dr. Martin Vanacour, Glendale’s City Manager from 1985 to 2001. If he worked with Glendale’s next City Manager from 2001 to 2012, Ed Beasley, it was for a very brief time prior to Beasley’s departure. So who did Hester work with? That leaves Horatio Skeete, City Manager for about 4 or 5 months in 2012; Dick Bowers for approximately 8 months in 2012 to 2013; Brenda Fischer for 17 months from 2013 to 2015; and now Dick Bowers again. It appears that the number of city managers with whom Hester has worked is three. His characterization of a “number of city managers” would lead one to believe that there have been scads of them. Hmmm.

Then again, of course Mr. Hester was delighted to have Fischer as Glendale’s city manager and why not? Ms. Fischer’s husband was, and may still be for all I know, a firefighter in Henderson, Nevada. It is understandable that Ms. Fischer’s natural bias would be in favor of the firefighters. Wouldn’t Hester feel he had a sympathetic ear when it came to firefighter goals and issues?

Mr. Hester also stated that Ms. Fischer was “good for business in the city.” Perhaps he should have checked with Robert Heidt Jr., President and CEO of the Glendale Chamber of Commerce. I don’t think anyone has forgotten Ms. Fischer’s temper tantrum directed at Mr. Heidt at the Yard House restaurant…a very public place.

Mr. Toll’s headline for his article, “The two sides of the Fischer-Weiers split” implies that Mayor Weiers was responsible for her leaving. Not so. Ms. Fischer was capable of causing it all on her own. Her actions including promoting Julie Frisoni as Assistant City Manager when she was unqualified for the position at the time; her very public berating of the Glendale Chamber President; her perceived advocacy for one councilmember’s (Gary Sherwood) agenda; and her brazen request for three sitting councilmember’s emails were more than enough to sour a majority of council on her leadership.

Many have come to the conclusion that Ms. Fischer orchestrated her own demise as Glendale’s city manager.

© Joyce Clark, 2015

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My hope is that all of the hundreds of Glendale library patrons who fought so hard to save Foothills Library will fight just as hard to demand that the West Branch Library become a reality.

With all of the recent discussion of the possible sale of the Foothills library building it’s a good time to review promises made by the city with regard to the construction of the West Branch Library.

In 1997 the city was considering reneging on its first promise to West Glendale residents by allowing land earmarked for a major regional park in the city’s General Plan document to be rezoned for homes. West Glendale residents were successful in defeating that proposal and insisted the city immediately purchase the land at the northeast corner of Bethany Home Road and 83rd for its promised regional park. The city did so and the land was acquired.

Major city facilities such as the construction of libraries and parks are placed within the city’s Capital Improvement Program or CIP. The first time we see the West Branch library appear in the city’s CIP is Fiscal Year 1998-99 when funds were allocated for Fiscal Year 2001-02 to design the library with construction slated to begin in Fiscal Year 2004. That was 17 years ago. Obviously, none of these scheduled events happened. Instead there was a steady erosion and slippage of dates.

  • From Fiscal Years 1998 to 2000 the scheduled completion of the library was 2004
  • From Fiscal Year 2002 to 2003 the scheduled completion of the library was 2005
  • From Fiscal Years 2003 to 2005 the scheduled completion of the library was 2006
  • From Fiscal Years 2005 to 2008 the scheduled completion of the library was 2009
  • From Fiscal Years 2008 to 2009 the scheduled completion of the library was 2010
  • From Fiscal Years 2009 to 2012 the scheduled completion of the library was 2020
  • From Fiscal Years 2012 to present the library has no funding allocated until after 2024

If the West Branch library had been built as promised, “by 2010 the West Branch Library will serve a population of approximately 50,000 in the western area of Glendale, and it is anticipated that more than 1,000 people per day will utilize the services of this branch” (quote from staff presentation at the September 16, 2008 city council workshop meeting). Nothing demonstrates the need for a West Branch Library today better than this quote.

The rationale for not building the west branch library can be attributed to the adoption by a majority of council mandating that there be enough new revenue in the General Fund to support the annual costs of opening and operating a new CIP facility. This criterion was not used to approve the Foothills library. It was crafted later by the former mayor and her coalition when there arose yet another discussion about approval for construction of the West branch library. In a span of 7 years, from the opening of the Foothills library in 1999 to the opening of the Foothills Recreation & Aquatic Center, north Glendale received over $20 million dollars worth of CIP projects. West Glendale received squat.

The majority of councilmembers that consistently voted in line with the former mayor for any CIP project but the west branch library were Eggleston, Frate, Martinez, Goulet and Knaack (all former councilmembers serving differing terms). In 2006 a majority of council diverted $6 million dollars of west branch library construction funding to assist in the construction funding of the Public Safety Training Facility.

Every time the west branch library was on an agenda the “gang” created a new rationale. Before the effects of the Great Recession stopped all CIP projects, they had pitted building a new courthouse against the west branch library and would have funded that first as a means of further delaying the library.

There was a time, in the early 2000s, when council realized the necessity and value in developing amenities such as a library, recreation center, baseball fields, a fishing lake and dog park in west Glendale that would attract high quality residential and commercial development but that evaporated with the advent of the former mayor whose agenda was to block construction of city amenities in west Glendale.

It’s time…17 years is a long time to wait to have the city make good on its promise…for Glendale residents to bring this issue to the forefront once again. It should be requested that as CIP funding becomes available, the West Branch Library must be considered a priority. West Glendale is “amenity poor” and it’s time that this city council redresses a wrong committed by others many years ago.

Oh, and while you are at it, demand that the city replace the O’Neil Swimming pool at Missouri Avenue and 65th Avenue. The city shut it down several years ago because the cost of repair was prohibitive. It was the only city pool west of 59th Avenue and it served some of the city’s poorest demograhic area.

© 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.