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Joyce Clark Unfiltered

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Casino…to be or not to be, Part 1

Posted by Joyce Clark on April 11, 2013
Posted in Casino  | Tagged With: , , | 4 Comments

On April 9, 2013 there was a court hearing in Phoenix on the issue of the proposed Tohono O’odham casino. From the reporting that has occurred Judge Campbell’s mind appears to be made up and it does not bode well for the State, the Gila River tribe or Glendale. Today I begin a series on the proposed Tohono O’odham casino. It’s proposed location is in a County island within the borders of Glendale, Arizona. We’ll look at geography and where the proposed casino sits in relation to other sites within Glendale. I created this map. It is not to scale but it does demonstrate the relative position of other, established development to the proposed casino site. Unfortunately, this site does not allow for a larger image. If you would like to see a larger version, email clarkjv@aol.com and I will send it to you as a jpg. file.

Casino Map LARGE JPG Ap 9 2013Perhaps the most important piece of geographical information is that the proposed casino will be approximately less than a 1/2 mile north of the Westgate site and Jobing.com arena. Another piece of the puzzle is the number of homes nearby:

There are 4 high density residential sites. Two of them are near Cabelas, directly south of and adjacent to the proposed casino site, for a total of approximately 800 units. The two other high density sites are in Westgate and are another approximately 800 units.

Now, add to those 1600 apartment units, these nearby residential communities: ProvenanceProvenance (across 91st Avenue and within 1/4 mile) with 120 homes; Rovey Farm Estates (across 91st Avenue and witin 1/4 mile) with 800+ homes; Broadway (within a mile) with 60+ homes; Pendergast Estates (within a mile) with 60+ homes; and Desert Mirage/La Buena Vida (within a mile) with 1200+ homes. That’s a total of 3,840 residential units in close proximity to the proposed casino. The recognized multiplier of residents per home is 2.5. Multiply those units by 2.5 persons per unit and that equates to 9,600 or almost 10,000 people living in very closeRoveyFarmEstates proximity to the proposed casino.

Centrada Norte

Centrada Norte

In addition to existent development in the area there are many future developments that have already been approved by Glendale City Council. These developments would add more hotels, more commercial and some additional residential units to the area. Some of these approved projects are: Centrada Norte, Bella Villagio, Sportsman’s Park East/Sportsman’s Park West, and Zanjero – all within a quarter of a mile to a mile away). By no means is this a complete list.

Kellis HS

Kellis HS

There is also a Peoria district high school. Raymond Kellis, directly east and across 91st Avenue from the proposed casino. The Peoria district also owns land to the east of the high school that has been planned for a number of years to beome an elementary school.

To recap, the proposed casino would impact nearly 10,000 people, a high school, Westgate and all future development of the area.

Next up…how did the Tohono O’odham get the land?

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Just for fun…

Posted by Joyce Clark on April 7, 2013
Posted in City of Glendale  | Tagged With: , , | No Comments yet, please leave one

Rumors abound about the Coyotes’ ownership saga. Sightings of potential owners now occur regularly at every home game. Thank goodness, according to the research done by one of our Coyotes’ “thug gang,” Greg Dunaway, average attendance is up by at least 7%. When you go to a game, it looks like a full house to me. That surely warms the heart of any potential owner of the team.

At the last game I had my trusty binoculars in tow (usually I forget to bring them or am too lazy to carry them). I spotted John Kaites in Mike Nealy’s suite and George Gosbee chatting in the lower level. I didn’t see LeBlanc, Hulsizer or Jamison. That doesn’t mean they weren’t there. I simply did not spot them. I also saw Councilmember Sherwood in his new Coyotes jersey with his name and number 13 on the back. He visited Nealy’s suite for a generous helping of snacks and goodies and then swiftly disappeared.

Just for fun I have once again added what is fast becoming the Coyotes’ Wheel of Fortune. If you could spin it wherever Wheel of fortune 4the pointer landed would be as good a guess as any as to who the new owner will be. There was an old radio show when I was a kid called “The shadow knows.” In this case, it’s not the shadow, it’s Commissioner Bettman who knows the winner of this contest.

ouija boardOnce the new owner is announced and brought to Glendale for the final act, you can then use this trusty Ouija board to find the answer to the question of: Will a majority of the Glendale City Council award the lease management contract? Right now, a Ouija board will give you a comparable answer to any of the speculators.  Have fun!

 

 

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Late on Friday, April 4, 2013, Craig Morgan, who covers sports for Fox Sports Arizona among a growing list of other media, did an outstanding job of summarizing the recent Coyotes saga. To read his entire article, please go to http://www.foxsportsarizona.com/nhl/phoenix-coyotes/story/Coyotes-ownership-saga-hits-stretch-run?blockID=889001&feedID=3702.

board-gosbee

George Gosbee

Leblanc

Anthony LeBlanc

I have chosen some of the most salient snippets for further commentary. He said, “The group led by George Gosbee and Anthony LeBlanc has already submitted its purchase bid to the NHL, and Darin Pastor’s group submitted the paperwork for its proposal to the league on Friday. Greg Jamison’s group is still working on a proposal, but it is expected that they will submit it by the middle of next week, likely under pressure of an imposed NHL deadline.”

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Darrin Pastor

Jamison

Greg Jamison

The latest rumors say the LeBlanc/Gosbee deal is for 15 years, with no opt-out clause and an option to buy the arena. There is no word on the kind of deal submitted by the Pastor group. That’s odd after his flurry of recent publicity. I am especially gratified to see that Greg Jamison is still a player. I must admit that I hope he prevails. I have met him and talked to him in depth and it is still my belief that this man is a perfect fit for the Coyotes. Morgan offers that Matt Hulsizer may still be in the hunt as well. Maybe…maybe not. Mr. Hulsizer, a successful businessman, married into a family of wealth. They were willing to support him on his first attempt to buy the Coyotes…and why not? A hundred million dollars would have come from the City of Glendale. Yes, the family investment was still healthy but not as much was on the line as the city’s investment under Hulsizer. My guess is that there is no will to continue on the part of the family. I could be wrong for I have proven so in the past but somehow or another, I am willing to write him off.

Mr. Morgan then goes on to say, “What is likely to happen soon is that the NHL will choose an exclusive buyer, then approach Glendale to negotiate the lease agreement. The Glendale City Council hired Beacon Sports Capital in late March to solicit bids from management companies to run the arena, as well as to handle negotiations with any prospective owners.”

Bettman

Gary Bettman

This confirms my assessment in previous blogs that the League is in the driver’s seat this time. They will choose the buyer and Glendale will either come to terms with that buyer or not. The option of relocation of the team is certainly not dead yet.  This council may have thrown good money after bad in hiring Beacon Sports Capital. It appears that Beacon will have no role in the process when the NHL selects the owner. There will be no one to vet. If, however, Glendale cannot or will not come to terms with the newly selected owner, Beacon will then have a role as council will most likely Mayor Weiers’ Plan B with the use of 4 managers for the arena.

In additon, Morgan states, “What that lease agreement will look like is anyone’s guess. Glendale City Councilwoman Yvonne Knaack said recently that the annual fee to the city could “be anywhere from $6 (million) to $10 million on operating, and then maybe another $9 million on debt.” 

Councilmember Sherwood publicly recognized a figure of at least $10M to $12M annually for a lease management agreement.  Vice Mayor Knaack acknowledged a similar figure as well. She is also correct about the arena construction debt of approximately $9M a year. This is where it gets dicey. Will this council accept a deal that requires a substantial annual payment along with the annual construction debt? Combining the two, the figure will be somewhere in the $20M range annually. greed 1But that requires this council to cut expenses elsewhere to absorb the costs of the deal and to continue to build a contingency reserve fund. To date there has been absolutely no will to cut by the new council. In fact, they are considering adding 15 firefighter positions and a new $650K truck and 31 police positions to this budget. They simply cannot do both – manage the annual costs associated with the arena while creating new budgetary expenditures.

Norma Alvarez

Norma Alvarez

We have heard enough from Councilmember Alvarez to know that she wants to pay nothing for the arena and I suspect she thinks there is some group out there that will pay the city for the privilege of managing the arena. Not even her beloved Phoenix Monarch Group was willing to fall for that. If you remember, their base fee was $7M for a limited number of events…read tractor pulls. Nevertheless, she stubbornly holds to that position and has even managed to elicit support from Councilmembers Hugh and Chavira. Councilmembers Martinez and Sherwood recognize the importance of keeping an anchor tenant at the arena for the future of a vibrant Westgate that attracts new development in and around it.

Knaack

Yvonne Knaack

Weiers

Jerry Weiers

That leaves two question marks, Vice Mayor Knaack and Mayor Weiers. Vice Mayor Knaack is on the horns of a dilemma. I suspect in her “heart of hearts” she knows that keeping the team as an anchor tenant would be the right choice. But her strongest backers, the fire union, will put tremendous pressure on her if they see their 15 additional firefighter positions and new truck evaporate in this year’s budget. Mayor Weiers, on the other hand, derided the deal the previous council had with Greg Jamison. He should be reminded that Anthony LeBlanc has said publicly that any deal with the city must be similar to the previous deal on the table with Jamison. Weiers is also looking for a deal on the cheap. It will be time for these two people to decide what is more important. Is it more important to send the team packing and leave the legacy of an uncertain future for the arena and Westgate because it’s what their supporters in their previous election now expect of them? Or is it more important to accept that for the sake of Glendale, of Westgate and of West Glendale’s future development potential that sometimes one has to make the difficult and unpopular decision? We will see…soon enough. We all hope that they realize the importance of keeping an anchor tenant at the arena.

I am pleased that this long, painful Coyotes ownership saga is coming to an end. I wish all theCoyotes logo potential owners well although I continue to root for Greg Jamison.  The Coyotes team has been beleaguered and beaten for too long. They, more than anyone or anything else, have earned certainty about their futures.

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convention 2Wow! It’s difficult to summarize the 2 1/2 hour, April 2, 2013, Glendale city council workshop into about 1,500 words – but here goes. First up was the city’s Intergovernmental Director, Brent Stoddard, reporting on HB 2657 before the state legislature.  In a nutshell, cities can support 7 provisions of the bill but 3 provisions are in dispute with the state.  The legislature wants the state Department of Revenue (DOR) to collect all sales taxes from all cities in the state. Currently Glendale and 17 others collect their sales taxes, report and remit the state’s portion to the state. Guess the state doesn’t trust those cities. The cities have countered with a proposal to offer a one-stop portal through a third party that would be managed by the DOR. I guess the state doesn’t trust cities to audit businesses either and want to take over that function exclusively as well. The cities have proposed the creation of uniform auditing standards; and the ability to request of and notify the DOR so that a city could still perform the audit. Lastly, the issue of dreaded construction sales tax issue was discussed. It appears that both sides, the state and the cities, are miles apart on this one. No resolution to be had as of this date. Stay tuned for the next chapter on this issue.

Chavira photo

Sam Chavira

Next up was the Police department presentation by Interim Chief Black. Our fearless leader of and advocate for all things Public Safety Councilmember Chavira asked, if the department was adequately staffed to protect residents and keep officers safe. After winnowing through all of the rhetoric, Chief Black reluctantly said, yes by saying, “we are meeting the needs of the community as best we can with the allocated funding.” How’s that for threading the needle?

Chief Black and her department are to be commended for their innovation and creativity. As a result of their reorganization efforts patrol staffing will go from 166 to 182 officers, increasing an officer’s pro-active patrol time from a low of 11 minutes to about 16 minutes per hour. That is phenomenal considering Glendale’s current financial position.  Their adoption of a new CAD system this fall will include an automated vehicle locator on all patrol cars enabling the dispatcher to send the closest available unit. This new system will create fuel cost savings and reduce response times.

Norma Alvarez

Norma Alvarez

Naturally, Councilmember Alvarez admitted that she didn’t understand all the numbers and “stuff.” Based upon her Ouija board, she KNOWS that the city’s residents are not well protected, especially in south Glendale, the area in which she lives and which she represents. The heck with the entire city. She went on to say that she didn’t want Chief Black to be a good employee and to work within the city’s fiscal constraints. Alvarez also said “we have to put more officers out there” and we can take dollars from programs that are a luxury. It will be interesting to see what she defines as a luxury.

There was a lot of discussion about the 8 police zones into which the city is currently configured. It seems no one on council could wrap their heads around this concept. What was not communicated is that all zones are not created equally, at least in size. Their dimensions are based on the number of calls for service as well as what makes sense geographically for patrol and response times. The more calls for service in an area, the smaller the zone gets.

Knaack

Yvonne Knaack

Vice Mayor Knaack then said the level of police staffing was “unacceptable.” By whose or what definition?  I guess the fact that our police department in July, 2012, was re-accredited by the Commission on Accreditation for Law Enforcement (CALEA) once again and for the first time was awarded the Gold Standard doesn’t mean anything and can be ignored. Really? When pressed by Knaack, Chief Black indicated it would be nice to be at fully authorized strength by adding another 31 officers. Bingo. Yet the police department has $7M as contingency in their public safety sales tax fund. I, like Vice Mayor Knaack, remember distinctly that one of the purposes of this public safety sales tax was to hire more officers.

Fire Chief Burdick’s presentation was interesting for what he said but also for what he did not say. The fire department still holds to a 4 person staffing model on all of its engine and ladder trucks and one is a firefighter/paramedic on each truck. Four men on a truck to answer fire calls is necessary to meet OSHA’s 2-in-2-out law. That mandate makes sense. That means for a working fire, while 2 firefighters are in a building, there are 2 on the outside to make rescue if necessary. Perfectly logical for working fire service calls. True, the number of working fires has increased by 26% due to automatic aid. Are all of those working fires in Glendale? Probably not.

The vast majority of calls are medical (estimate is that they are at least 80% of all calls for service) requiring either advanced life support or basic life support. Why doesn’t the city have smaller vehicles staffed with paramedics?  When a fire unit is dispatched it is told what kind of call to which it is going to respond. Smaller vehicles used for medical calls would be more fuel efficient and cost less to operate and maintain and would not require 4 man units. Or perhaps a medical transport vehicle with 2 Glendale paramedics on board should be sent. There has to be a better, more cost efficient way to respond to medical calls than sending a very big and very expensive fire truck.

Weiers

Jerry Weiers

Mayor Weiers did ask about automatic aid and what was the ratio of calls between Phoenix and Glendale and Peoria and Glendale.  Bravo. Not surprisingly, Chief Burdick didn’t have that information and said he would provide it. This is typical of staff when there is a question that they would rather not answer publicly.  Usually it’s because the answer doesn’t advance their cause. Weiers did bring up another suggestion, the use of an LPN in answering medical calls. The LPN could write prescriptions and make a determination if medical transport was needed.  That idea met with a great deal of resistance by Chief Burdick despite his admission that it is a model being used in Mesa. It could very well be an idea whose time has come. Using a truck that gets 5 miles to the gallon with 4 firefighters/paramedic is no longer cost effective at a time when the majority of calls for service are medical.

Chief Burdick, after this annoying interruption with questions of fact, was then asked by Councilmember Chavira if the department was adequately staffed and if firefighters were safe. Once again, cutting through the rhetoric, his answer was, yes today, quickly followed by a need to address excessive call volume. Whose? Those of Glendale residents? Phoenix residents? Peoria residents? We don’t know because that information was not provided.

Vice Mayor Knaack cut to chase and asked what he needed. Immediately the chief responded with another 15 firefighters and another truck ($650,000 price tag but would pay $65K a year in a lease back). Bingo.

greed 1The councilmembers’ questions certainly fed both departments’ agendas of “gimme more.” And why wouldn’t they? Look at some facts. In the last election cycle both unions, police and fire, supported Weiers, Sherwood, Hugh and Chavira. Vice Mayor Knaack and Councilmember Martinez received the same healthy union support in their last reelection bid in 2010. The police union was a minor player in both elections not having the same political war chest or available personnel as the fire union. The fire union, on the other hand, made sure there were cash contributions by individual, non-Glendale, firefighters to their campaigns, paid for printing and mailing campaign literature and paid for and put up campaign signs for these very same people now deciding to beef up these departments-because staffing levels are “unacceptable.” There is nothing illegal about any of these actions. It’s Politics 101 but it doesn’t serve, you, the taxpayer very well. Perhaps the parks and recreation people or the finance people need a union to level the playing field.

Sherwood

Gary Sherwood

Under Council Items of Special Interest, Councilmember Sherwood called for starting a search for a permanent City Attorney. What was truly mind-boggling was Councilmember Alvarez’ request that the City submit grant applications to the Tohono O’odham tribe for Public Safety dollars. What about we are still in litigation with the TO doesn’t she understand? When one is in a legally adversarial position with another, one does not ask for handouts from his adversary. She also thinks the city is mean and nasty because it owns the web page for the West Valley Resort and the TO has to pay the city annually for the right to use it. It is true. Congratulations to the city for pulling such a wonderfully, snarky yet brilliant move.

Council then adjourned into Executive session. Topics up for discussion: external audit, arena RFP, compensation for departing City Attorney and compensation for the new Interim City Manager. I suspect we will find out the results in a day or two.

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cit mtg 2On the evening of April 1, 2013, the City made a public presentation of the state of its budget to the public. If you include myself and the councilmember representing our area there were a total of 5 people in attendance. That’s right. Three citizens and us. How embarrassing for the councilmember. Oh, but that’s OK. His only constituency these days is the fire fighters union.

staff multiplied jpgIn terms of city staff, it would be safe to say the citizens were outnumbered at least 3 to 1. There was at least 20-25 staff in attendance. Every director of every department was on hand to answer the flood of citizen questions (not), in addition to 2 of Glendale’s cable channel 11 TV crew filming the non-event. It almost begs the question as to why doesn’t the city ask the general public to RSVP? If a minimum number of citizens respond, the meeting is held. If only 2 or 3 respond, the meeting could be cancelled. After all if the public meeting had been cancelled, it would have only required calls to 3 people.

These staff members are salaried and not paid time and a half for extra duties such as attending this meeting.  These salaried personnel, if they so choose, can compensate themselves for the time by coming in to work a little later or taking a longer lunch break. It is an option available to them should they choose to use it. Many of them do not and put in more than a standard 40 hour work week.

Ms. Schurhammer, Executive Director of Finances, made a 15 minute presentation on the city’s budget. She concentrated on the city’s total Operating Budget by Fund and Department and the General Fund Budget by Department.  She pointed out that 34% of the city’s entire budget and 63% of the city’s General Fund budget goes to Public Safety. There was virtually a silent scream from all non-public safety staff asking how much more does Public Safety need? We’ll get to that in a minute.

Back in December, 2012, both the Fire and Police departments had their respective budgets balanced and were prepared for a vote of approval from the sitting council at that meeting. However, Vice Mayor Frate made a motion shark 2that their budgets be tabled and brought up again when a permanent City Manager was hired. The vote was 6-1 with me being the lone, dissenting vote. That action left their budget departments” doors open just a crack. Now, sensing an opportunity, they are smashing open those doors with a fire truck and tactical vehicle. They sense blood in the water and this new council (led on this issue by Councilmember Chavira, a Phoenix firefighter) is willing to give them everything and anything they want. Chavira will take care of his brothers in Glendale and we can only guess that Phoenix Councilmember Danny Valenzuela (a Glendale firefighter) will take care of his brothers in Phoenix.  Sweet, isn’t it? It has a nice, quid pro quo ring to it, doesn’t it? Note that the city does not have a permanent City Manager. Yet he will have to deal with the largesse that this council dispenses.

cit mtg 1After Ms. Schurhammer’s presentation, Ms. Julie Watters of the city’s Media and Communications Department, led the meeting by asking if there were any public comments. Mind you, a citizen could not ASK a direct question, only comment. If anyone had a question, they were directed to talk to that specific department director after the meeting. This is a tried and true practice that Glendale has practiced for years and which I have hated for just as long. For you see, if the question is a difficult or uncomfortable one, the answer is made only to the citizen seeking the answer after the meeting. After all, the city wouldn’t want all those citizens hearing that awkward answer to that difficult question. Would it? It’s a divide and conquer strategy that I believe is unfair to the citizens of our community.

cooler 3What were the water cooler musings? Several sources echoed one another. Much of it, dear reader, is old news for I have blogged about it previously. Nevertheless, here goes:

  • The Coyotes will be sold this month by the NHL.
  • The idea of 4 separate arena management contracts (you remember…hockey, entertainment, education and cleaning) still has legs and is not dead.
  • The general consensus is the Coyotes will be leaving Glendale as the city and the new team owner will not be able to come to mutually satisfactory terms on the arena lease management contract.
  • Or the other theory is that the team will stay in Glendale briefly (2-5 years) and then relocate.
  • This new council has no will to make the necessary and needed cuts over the next 4 years and likely will not sunset the temporary sales tax increase in 2017.

super bowlAll departments will struggle to come up with adequate funding to support the hosting of the 2015 Super Bowl in Glendale. Further diminishment of citizen services may be the only way to fund the costs.

 

 

 

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Who will be the gorilla?

Posted by Joyce Clark on April 1, 2013
Posted in City of GlendaleGlendale finances  | Tagged With: , , , | 1 Comment

budget 3The Glendale City Council typically meets in workshop session every two weeks on a Tuesday afternoon at 1:30PM. It is also televised on Glendale’s Channel 11, which only works if you have Cox cable service and live in Glendale. It is also available online at www.glendaleaz.com.

coins 1This is the busiest time of year for any city council as it decides where to allocate resources (revenues) for the coming year. Money in local government is power and each department fights to retain or grow its part of the pie(chart). It will be interesting to see who the gorillas are this year.

What can we expect this Tuesday? Several important items are up for discussion, some of which will be discussed inman money open session and some of which will be discussed in the non-public, executive session. First up in the open session will be the periodic legislative update. There should be discussion (I would hope) on the state’s attempt to take away cities’ construction sales tax. This issue is huge and if the state prevails, look for every city (including Glendale) to try to find ways to mitigate this loss which could be substantial.

firefighterNext up will be Council Items of Special Interest on the Police and Fire budgets. Making it to a workshopPoliceman agenda is interesting in and of itself. Last week Councilmember Chavira called for such a discussion and his suggestion met with deafening silence by the rest of Council. Yet here we are, a week later, and it has made its way to a workshop. Even more curious, at the previous council’s January 8, 2013 meeting, it was scheduled to vote approval to take actions to balance both department budgets. Instead a motion was made and approved by a majority of council (I was not one) to place all actions on hold until the appointment of a permanent city manager. There is no permanent city manager…yet…but like an unruly stepchild, the issue is before the new council. Hmmmm…

Then there are the six items listed on the council’s executive session agenda. Three of them are hot topics. One is consultation with the newly hired external auditor with a price tag of $200,000; another is that council is to give the contractCity Manager and City Attorney direction regarding arena management (don’t forget Beacon Sports’ fee of $100,000) and the Coyotes; and the last of the trio is to resolve the compensation package for the former City Attorney and I assume, the Acting City Attorney as well. The first two items deal with contracts and the third with personnel. All, unfortunately, are legitimate topics of private discussion.

It would be extraordinary if council resolved the Coyotes issue in Esession but, the NHL will first sell the team to whomever and then the council will decide if the Coyotes stay or go when it makes its decision about the arena management contract. Don’t expect any news on the Coyotes issue from Glendale today or anytime in the very near future.

On Monday, April 1, the city will host its first of two community meetings on the city budget. I plan to go and learn the “media line” that will be used to sell it to the community this year.

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man moneyThere were several take-aways from the March 27, 2013 Glendale City Council budget workshop. Perhaps the most important was the Executive Director of Finance, Ms. Sherry Schurhammer’s quote of the day, “we have an ongoing operational deficit.” I’m not sure what about that statement some councilmembers refuse to understand. It’s really quite simple. The city spends more money than it takes in.  It’s almost as if members of this council expect manna from heaven or a sugar daddy to appear as a means of solving the city’s financial problems. Let’s hope this council grows a backbone and accepts that cost of service cuts are needed. The latest proposal from staff shows major cuts of $8M not now but in Fiscal Year 2014-15 and another round of cuts in Fiscal Year 2016-17. Quite clearly putting off the necessary cuts merely compounds the deficit and makes the future cuts to citizen services and quality of life more drastic and more painful.

Coyotes logoAnother interesting take away is the fact that staff is using $6M as a placeholder for an arena lease management fee. At least there was acknowledgement that this figure is merely a place holder. The final fee could be higher, lower or stay the same.  Or is that a place holder for the Phoenix Monarch Group, the good friends of Councilmembers Alvarez and Chavira? There remains a residual “blame the Coyotes” mentality. The first slide up presented by staff showed the city with a $3.4M deficit if it had had to pay the $17M arena lease management fee this year. I think that deficit blame deserves to be placed elsewhere. How about the $2.5M to repay the Water & Sewer Funds, and also used to make the Risk Management Fund and the Workman’s Compensation Fund whole? Or how about the $2.2M of newly created expenses: a $200K audit, a $100K Beacon contract, $1.2M additional to the Fire Department; an additional $370K in legal fees, an additional $370K in water costs in the Parks & Recreation Department or the unknown amount in salary and benefits for the newly hired Interim City Manager? These big ticket items come to nearly $5M in new costs that were unbudgeted when the current budget was approved and they will have to be absorbed this year.

hidden agendaAnother take away is there is certainly no doubt about at least one councilmember’s agenda. CM Chavira is “carrying the water for Public Safety.” It was obvious that his friends from inside those departments, especially Fire (don’t forget he’s a Phoenix firefighter), had prepared a series of questions for him to ask.  He read them quite nicely. Later when he was asked if he had more questions and apparently had used all of his prepared questions, he seemed to be at a loss for words. Chances are they will have prepared a new set of questions for him to read at the April 2, 2013 council workshop on Public Safety.

PolicemanWhile Interim Police Chief Black answered his questions directly and provided a realistic assessment based upon the city’s current fiscal condition, we didn’t see the same level of cooperation from Fire Chief Burdick. There definitely is a further agenda occurring on the Fire side. We heard the first salvo today when the Chief said calls for service had grown. Well, Glendale’s population has not grown per Mr. Craig Johnson, Director of Water Services, when he said new water hookups are flat. Those people leaving Glendale are replaced by others moving in but not in large enough numbers to create an explosion of growth in Glendale. The city is already planning for the fact that as Glendale’s population remains static, it will lose some of its state shared revenue to other, growing NW and W Valley cities.

Red Firetruck with Ladder ClipartSo where are the increased calls for fire/emergency service coming from? Have you heard of Automatic Aid? It’s a regional and cooperative program among most Valley Fire departments. If there is a call for fire service in Phoenix, Avondale, etc., and their nearest truck is busy on another call, the nearest adjoining city department will respond. I would certainly want to know the number of calls for fire service Glendale responds to outside the city versus the number of calls for service within the city. The increase in calls for fire service may well be attributable to population growth in cities surrounding Glendale.  If that is the case and the increase in calls is the result of an increased need to respond to Automatic Aid calls that is not a Glendale driven problem. We are not mandated to grow service or pay for it in Glendale to accommodate surrounding cities. While Automatic Aid is great in fostering regional cooperation in cases of extreme regional emergencies and for creating cost efficiencies in the use of specialized services such as water or mountain rescue, I am not convinced that it works in the best interest of a city with a stable population base whose resources are being used by surrounding cities with burgeoning populations.

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External Audit coming…

auditAt the Tuesday, March 26, 2013 City Council meeting an agenda item will be a vote of approval to hire Haralson, Miller, Pitt, Feldman & McAnally (HMPM), P.I.C., a law firm, to perform the special external audit this council has been craving. It doesn’t come cheap. The cost of this contract is $200,000. HMPM will subcontract out some of the work to Butler, FFG, and ESI. It is not clear from the staff report what would be the scope or responsibility of any of these firms. It is also not clear what their specialties are.

The costs per hour range from a high of $400.00 per hour for a principal to $100.00 per hour for a paralegal/law clerk.  Simple math shows that the number of hours billable for this contract range from 500 hours (about 12 ½ weeks) to 2,000 hours (about 50 weeks). This exercise could be completed in 3 months to a year. I think we can expect it to be completed this summer.

This is not a budgeted item and is not included in the current Fiscal Year 2012-13 adopted budget. That means that the money will have to be allocated from somewhere in the budget. Look for the payment of this contract to come from the $17M set aside for an arena lease management agreement. By the time this council’s agenda is met we won’t see much of the $17M left to pay anyone to manage the arena.

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Dick Bowers
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A new Acting City Manager…

Expect at this same council meeting the hiring of Mr. Richard Bowers, former Scottsdale City Manager, as Glendale’s Interim City Manager until the search and hiring of a permanent city manager is completed.

A new Acting City Attorney…

Expect the council to approve Mr. Nick Depiazza, current Chief Deputy City Attorney, as the Interim City Attorney, until a permanent City Attorney is found and hired.

Budget meetings slated for this coming week…

On Wednesday, March 27, 2013 and Thursday, March 28, 2013, council will participate in two budget workshopsbudget 3 starting at 9am each day. This year’s budget workshop book is a hefty 284 pages of reading guaranteed to entertain and delight. Just crank up your printer, go to the Glendale website, find the agendas under the City Clerk’s page and you can print your very own copy just as I did. If you know where to look you will be able to spot the shifts in policy based upon where this council allocates available resources.

coins 1Still looming is how this council will address the loss of $22M in revenue currently being earned by the sales tax increase slated to sunset in 2017. The general feeling among council is that the city will have recovered by then and will easily absorb the $22M loss in sales tax revenue. There appears to be no will to be fiscally prudent and continue with cuts in anticipation of that loss of revenue. If they do not have the will to make gradual cuts each year for the next four years, they will be forced by circumstance to make draconian cuts in 2017. It’s very simple; karma catches up to you every time.

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Today the city released as an agenda item for Tuesday, March 26, 2013 city council meeting. The council will be asked tocity hall 2 formally ratify a contract with Beacon Sports Capital Partners that has apparently been in effect since March 4, 2013. In fact, the City’s Communications Director, Julie Frisoni, denied as late as March 15, 2013, that there was any such contract.  An action George Fallar and I have speculated upon for the past month.

I suspect that the contract was vetted in a previous Executive session after a council workshop. Keep in mind, council may not vote in a workshop or Executive session but they can certainly come to consensus and give direction. When I served on council, a majority routinely gave direction in an Executive session. The council meeting on March 26 merely ratifies direction provided as a previous executive session. So much for a greater transparency embraced verbally by the new council and recently lamented as absent by the infamous Ken Jones in recent letter to the editor in the Glendale Star. The bloom may be off the rose for Mr. Jones and his love affair with the new council.

BeaconThe Beacon contract is short and sweet and takes only 4 pages. Glendale tasks Beacon with developing an RFP “process for the future lease and management of the Arena to prospective Venue Managers…” Its role is that of liaison for Glendale and it has no power to bind Glendale to any contract. Its duties consist of: reviewing all existing business contracts; preparing the RFP; soliciting interested parties and assisting them in their due diligence and review process; providing a recommendation to the city manager and council; developing the arena management agreement and sealing the deal between the venue manager and the city. We have to presume that the NHL approves of such an arrangement as they continue their silence (there is an occasional platitude signifying nothing).

This contract is in effect for 6 months (September 6, 2013) or if a venue manager is secured before the end of the statedcontract term, it will terminate earlier. When this agreement is ratified by council, presumably on March 26, Beacon will receive a $25,000 retainer. In addition to that retainer the city will pay $400 per hour for the services of 3 Beacon principals: Richard Billings, Jr., Gerald Sheehan and Christopher Billings. Oh, and by the way, these fine gentlemen will be reimbursed for any out-of-pocket expenses such as travel, lodging and meal expenses. The costs of this contract are not budgeted in the Fiscal Year 2012-13 budget. The funds will have to come from the “Unappropriated Contingency” Fund (read the $17M allocated in this year’s budget to pay for an arena manager).  Lastly, both sides in the contract recognize that this agreement is proprietary and confidential.

In a previous blog, “Ripples in a cornfield,” I related that a 2005 suit was filed against Beacon Sports, IFG and Michael Reinsdorf by West Coast Arena Ventures, LLC in the Superior Court of California. West Coast Arena Ventures sued because it alleged that its confidentiality was breached by Beacon, IFG and Michael Reinsdorf. I do not know the outcome of this suit.  It has been alleged previously that when IFG and Michael Reinsdorf had work they could not or chose not to take they passed it on to Beacon. A leopard doesn’t change its spots.leopard 2 It may very well come to pass that the Reinsdorf/Kaites group will have an inside track because of its relationship, perceived or real, to Beacon Sports.

The previous Reinsdorf deal for the purchase of the Coyotes insisted there be a 5 year opt-out clause. If they hold to the same line, the Coyotes could stay for an abbreviated period and then be moved to…Seattle?

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savingsIn my posting the other day, “Saving grace,” I talked about the $17M allocated and reserved in Glendale’s Fiscal Year 2013-14 Budget for Jobing.com Arena’s lease management agreement. I suggested that saving that $17M would be prudent by placing it in the city’s Unappropriated Contingency Fund. It should not be spent at this time. Then should there be a lease management agreement the first year’s funding would be available or if not used in that manner, it would fatten the city’s bottom line, an attractive strategy for lowering interest rates on the city’s bond indebtedness.

Well, apparently everyone – from city staff to the council – is already placing dibs on that money as evidenced by the March 19, 2013 City Council workshop.  Ms. Sherrybargaining 3 Schurhammer, Executive Director of Finance, offered many ways to spend it. Some of the expenditures include:

  1. Paying for the special, outside audit mandated by the new council.
  2. Paying for the consultant (read Beacon Sports and its special ties to the Reinsdorfs) to write and manage the RFP for the arena.
  3. Miscellaneous city department overages or unexpected expenses.
  4. Repaying loans made from the water and sewer funds.
  5. Paying for fund transfers to and from the Risk Management Trust Fund and the Workers’ Compensation Trust Fund.

Add to that staff wish list Mayor Weiers’ recent comment about raising employees’ salaries. Also add Councilmember Chavira’s plaintive call for a Special Council Workshop to consider the issue of Public Safety employees’ compensation and Councilmember Alvarez’ desire to restore or increase funding for youth and the poor.

If everyone’s desires are fulfilled, you can say good-bye to that $17M at the end of budget workshop discussions. Then where will the funding come from if (are you listening, God?) there ever is a successful contract for the arena and its management.

tax increaseI also heard the first tentative feelers being thrown out there publicly about Glendale’s property tax rates and the fact that revenues from that source continue to drop. Don’t be surprised if there is discussion (and possibly) adoption of higher property tax rates in Glendale.

 

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