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Joyce Clark Unfiltered

For "the rest of the story"

I have watched nearly every Coyotes game this season. The St. Louis Blues game on March 2, 2014 was positively painful as the team disintegrated in the third period and blew a lead. Does that suddenly make me an expert? Gosh, far, far from it. Yet even the most uneducated fan recognizes the team’s lack of consistency from game to game. In one game they are brilliant. In the next it’s as if they don’t know each other. What seems to be happening now is more than a lack of consistency. It’s as if a malaise has settled over the team destroying its chemistry.

Everyone has assumed since 2009 that stable ownership would offer certainty to the players and would remove the team’s collective anxiety causing them to play with more confidence. Yet in 2012 while under the ownership of the League’s front office and with no ownership surety the team made the play offs and won the divisional title. Is throwing money at the problem the solution? Don Maloney and Dave Tippett operated on a shoe string that year and pulled it off. They had no choice. They were magicians.

In the face of disappointing team play this year, the year of stable ownership, ffn the face of disappointing team play nce. Yetary 28, 2014 game against the Colorado Avalanched acquire new ones. hat was it wian chirping has begun – but in a subdued fashion as no one wants to anger or alienate the new owners. The collective fan solution seems to be to get rid of some players and acquire new ones. Candidates identified after the February 28, 2014 loss to the Colorado Avalanche are Schlemko, Stone, Riberio and Smith. The team’s core has remained intact throughout the years of uncertain ownership drama  – Doan, Hanzel,Virbrata, Bissonette, and Yandle, to name a few. Instead of removing and replacing players the real question is, what has happened mentally and collectively to this core? There is evident frustration and anger. Witness some of Doan’s public remarks about the team’s abysmal play. One would think it has spilled over into the locker room – oh, to be a fly on THAT wall.

It’s too late to right the ship this year. Maloney and Tippett have to identify the mental poison and apply the antidote. That takes time. Unfortunately this year’s poor showing will affect the bleeding bottom line of the owners and of the City of Glendale. How long can either entity sustain the financial loss? In the case of the owners they would have you believe it’s not a problem for them but it most certainly is for Glendale. Glendale entered into the ownership deal relying upon the new owners’ promise to partially reimburse (the estimate was $9 million) the city for the management fee of $15 million a year through “enhanced revenues.” All estimates are that this figure will not be met – not even close to it.

On a different note: The owners just hosted Jewish Heritage Night. Great. I would expect to see Christian, Muslim and Buddhist Heritage Nights as well. If there is no recognition of other faiths, don’t we call that discrimination in this country?

© Joyce Clark, 2014

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

As we prepare to enter 2014 it’s a good time to look at the major issues Glendale will face. Here is Glendale’s Top Ten for 2014:

  1. The winner for the coming year is Glendale’s financial future. The City Manager and Executive Finance Director will offer a series of options, some critical, some not, to right the situation. Will the city council grow a backbone and adopt some stringent measures that are sure to be unpopular with the general public?
  2. Will IceArizona be able to deliver on its promise of enhanced arena revenues to recompense Glendale for its annual $15 million dollar management fee? The $15 million annual fee coupled with another $12 million in arena construction debt repayment contributes to Glendale’s heavy financial burden.
  3. The Camelback Ranch area has never delivered on its promise to perform. When the recession hit all development came to a screeching halt. Will the city create n incentive strategy for development of the surrounding area? Its annual $13 million dollar debt construction repayment is yet another major financial burden.
  4. Will the Attorney General’s office investigation into former City Manager Ed Beasley and deals cut with former financial consultant Art Lynch and former HR Director Alma Carmicle result in charges being filed?
  5. What impacts will the arrival of the first of 144 F-35 aircraft have on Luke Air Force Base, Glendale and the surrounding West Valley area?
  6. Will the Arizona Cardinals continue to seek its dream of a bubble tent practice facility on Glendale’s Youth Sports fields? What about their desire for Glendale’s long-promised parking garage as a means of fulfilling its parking requirements as vacant land diminishes at Westgate?
  7. Will the new City Manager Brenda Fischer continue to fire employees as her solution to any future irregularities? Will a new round of internal warfare erupt between police and fire over the severely constrained city revenue pot of money as her empathy toward fire (her husband is/was a firefighter in Henderson, Nevada) becomes more evident?
  8. With November, 2014 city election for councilmembers in the Cholla, Barrel and Ocotillo districts bring new faces and new agendas and another shake up in the fragile council coalitions?
  9. Will the temporary city sales tax increase become permanent as a solution to Glendale’s financial mess? How will citizens react to the broken promise of its sunset in 2017? Will citizens see increases in all kinds of local taxes while experiencing a decrease in the level of services provided?
  10. How will the city find the money to pay for its hosting of the Super Bowl in 2015? A figure of $1.7 million dollars is unrealistic and doesn’t equal the amount spent by Glendale on its last Super Bowl hosting gig.

Lastly there is the unknown. There is always a new, unforeseen crisis. What will it/they be for Glendale in 2014? Councilmembers will continue to combat and to abuse one another and all of us. The City Manager will continue to offer policies to strengthen her power and there is no one on council to guard against it. Departments such as police and fire will vie for shrinking resources. New players and power brokers will emerge. All that can be said with any degree of certainty is that it won’t be a dull year. Thank goodness there will be plenty of fodder for upcoming blogs!

© Joyce Clark, 2013

FAIR USE NOTICE
This site contains copyrighted material the use of which has. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those 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, democracy, 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 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.

Coyotes Magic…there one moment, gone the next

Posted by Joyce Clark on October 9, 2013
Posted in City of Glendale  | Tagged With: , , , , | 5 Comments

This is not about ownership…only in a peripheral sense in the stability it affords the team. No, this is the rambling of a neophyte, still new to the game. I love the Coyotes. We all love the Coyotes. They are OUR team come hell or high water. Opening night wasn’t for the owners or the fans. It was for the team. Shane Doan’s face was a study in pure joy. That night was their night to win and everyone knew it. That night the team was magical. They played as a unit. They played as if they were one body. We all know that our brain sends signals to various parts of our body and we act and react without thinking about how it happens. That was the play of the Coyotes on opening night of the season.

We have seen and reveled in other magical moments. The team, as do we, remembers each and every one of them. It is the Holy Grail that they seek. So what’s missing these days? Two things. With ownership uncertainty the team viewed itself as the constant scrappy underdog, having to prove that they could succeed no matter what the circumstances. That mindset has disappeared…pouf! In an instant a four year identity was gone and there’s a void still unfilled. The “Hungrier than Ever” slogan is worthy but it is a continuation of a team image that is no longer descriptive. It’s a New Day and a New Team. They need to believe that they are winners and no longer the proverbial underdogs.

The other element is consistency. These men are professional athletes, paid to know and to understand the demands of their position on the team. They must strive to execute their positions flawlessly – no easy task. They must learn to become a well oiled machine and no longer play as individuals. It’s passing the puck and instinctively knowing that your team member will be in the right place at the right time to take it and to shoot. It’s the development of confidence and trust in one’s teammates. When that occurs, it’s magical. The team is not there yet. They lose a couple of games and all of a sudden their anger and the will to win kicks in. Then they are magical once again. These bursts of electricity and will to win demonstrate that the capability is there but not consistently.

The Coyotes are a team of immeasurable potential. All of the right ingredients are there. When you make a cake you need the right ingredients in the correct proportions. Too much flour and the cake is dry. Too much liquid and the cake is runny. Mixing the ingredients too quickly will produce a brick. Mixing the ingredients with enough time and it becomes a cake that magically melts in your mouth. The Coyotes cake has the right ingredients in the correct proportions. It needs to be mixed thoroughly to create its magic.

©Joyce Clark, 2013

FAIR USE NOTICE
This site contains copyrighted material the use of which has. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those 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, democracy, 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 Lawwho 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.

Coyotes failed at failing

Posted by Joyce Clark on September 29, 2013
Posted in City of Glendale  | Tagged With: , , , , , | 12 Comments

There is a really good piece on the Coyotes in the September 29, 2013 Arizona Republic by Sarah McLellan entitled Put the excuses on ice. Here is the link: http://www.azcentral.com/sports/coyotes/articles/20130928new-ownership-solid-core-mean-phoenix-coyotes-must-step-up.html .

Ms. McLellan has been perhaps the only reporter covering the Coyotes who remained unbiased and reported on them impartially throughout the entire 4 year saga of seeking an owner for the team. As she looks to the Coyotes’ future she makes some excellent observations. Among them, “The Coyotes just believed they needed the presence of ownership to get there (Stanley Cup). And now that they have that, it’s time to prove they can be better.” Or, “That challenge should bring pressure. This is a new era for the organization, one without the safety net of low expectations and ready-made excuses for failure.” She’s right. For the past four years the team could always point to ownership uncertainty as a reason for not quite getting beyond the next level. That mind set is no longer relevant. They will stand or fall based upon their cohesiveness and talents as a team. As Tippett says, “You have to build a core to continue the identity of that team to see if you can push it as far as you can.” Don Maloney and Dave Tippett, magicians that they are, have done exactly that.

As McLellan says, the ownership limbo “masked the pitfalls of a bargain-basement budget…” The new owners, IceArizona, have to date shown their willingness to revitalize this team and this franchise. That commitment will continue to require a steep price tag over the next few years by renewing contracts of their core players so that as Maloney and Tippett have said it does not remain a team continually in flux. Their current advertising campaign, “Hungrier than ever,” is good. While it connects with the fan base steeped in the team’s history, it misses the mark in connecting emotionally with new fans. Retaining a family friendly atmosphere at the arena that does not require highly visible boobs ala the Jerry Moyes era or young ladies cleaning ice and getting new concessionaires with better fare and prices that do not sky-rocket into the stratosphere are backbone components that will help to attract new fans, especially families. The other traditional sports, baseball, basketball and football offer ticket prices, with the exception of their occasional promotions, that do little to encourage continual and regular family participation. Yet it obviously will be family participation grows the next generation of hockey fans.

Ms. McLellan’s observation that the excuse of lack of ownership can be relied upon for the team’s quality of play coupled with ownership uncertainty are gone for good. As Sarah McLellan says, “The Coyotes failed at failing.” Now they must succeed at winning.

©Joyce Clark, 2013

FAIR USE NOTICE
This site contains copyrighted material the use of which has. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those 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, democracy, 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 who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to:  http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

On September 19, 2013 NBC Sports Pro Hockey Talk ran an article by Jason Brough entitled Under Pressure: Coyotes Fans. Here is the link: http://prohockeytalk.nbcsports.com/2013/09/19/under-pressure-coyotes-fans/ . In it he contends that it’s now up to Coyotes fans, “And you know what? Forget the out clause. Forget the possibility of relocation. What about just proving that Arizona can support an NHL team like other fan-bases? What about putting the days of half-empty arenas in the past? What about sticking it to all the people, fans and media alike, who’ve ridiculed the idea of a hockey team in the desert? Which is to say, everyone is watching, Coyotes fans. You got what you wanted. Now it’s your turn to prove the doubters wrong.”

He’s partially right. Now is the time for the “luke warmers,” those who sat on the sidelines waiting for the ownership situation to stabilize must regularly attend the games. The hard core fans, about 5,000 or 6,000, will be there no matter what but their committed attendance is simply not enough.

The real responsibility for proving that hockey belongs in the desert rests with the new owners. How well they market hockey in order to attract new fans is the test. Will their marketing efforts produce an additional 3,000 to 4,000 fans at each and every game? The numbers used may not be the correct ones but you get the idea.

There’s an even greater owner responsibility that will result in getting “butts in seats.” They must recreate an atmosphere – an aura – of team excitement and success. Remember the playoffs? The atmosphere was electric. You could feel it just walking into the building. It’s an intangible not easily defined or attained, for that matter, but that same feeling…electricity…aura…about our team, not just during the playoffs but day in and day out, is missing. The owners must find a way to tap into that sense of Coyote exceptionalism (where have we heard that word recently!)  if they really want to succeed. The puck is not on the fans’ side of the ice. It’s on the owners’ side. Can they score?

©Joyce Clark, 2013

FAIR USE NOTICE

This site contains copyrighted material the use of which has. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those 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, democracy, 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 Lawwho have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to:http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

On August 29, 2013 Paul Giblin of the Arizona Republic wrote a story about the Coyotes parking situation. Here is the link: http://www.azcentral.com/community/glendale/articles/20130829free-parking-westgate-may-cost-coyotes.html . Hard core, dedicated Coyotes fans are well aware that this season there will be a parking fee for Coyotes games. They have already made clear that they are on board and comfortable with the new parking fees. They understand that it is part of their bargain to keep the Coyotes playing at Jobing.com Arena. Season ticket holders have already been charged for their parking – anywhere from $300 to $600 for the season.

What about the casual Coyotes game attendee? Giblin raised the specter of all of the free parking available in Westgate in lots not controlled by the Coyotes as an alternative that will impact expected “enhanced revenues.” I think his angst was misplaced and deliberately designed to raise an irrelevant issue.

Currently Westgate charges $10 Parking* on Cardinals Home Game Days at Westgate Entertainment District designated lots. Free parking for pre-season games.*Cash Only. Here is the link: http://westgatecitycenter.com/visitorinfo/parking/ . It is logical to expect Westgate to employ the very same system for Coyotes games. If it is not immediately instituted, it certainly will be after a game or two. If one is going to a movie, shopping or eating and not attending a game, look for some kind of rebate system. Westgate cannot allow its customer parking to be usurped by Coyotes fans looking for free parking.              

We can also expect the Cardinals to come up with a parking fee structure for Coyotes games. When the Glendale city council was considering the current ownership deal rumblings were floating that the Cardinals would charge to park (and perhaps undercut the Coyotes’ fees). The city council was well aware of those rumblings. Of course, the council knew about the proposed Coyotes’ parking fees. It was discussed publicly and in its presentation to Council estimates were made by the new ownership of how much revenue would be generated. After 20% is taken off the top by ownership for each game, the balance will become part of the “enhanced revenue” package promised to the city to recoup the additional $9M unbudgeted for the annual arena management fee.  Inevitably, all of the Westgate lots and the Cardinals’ lots will be fee for parking.  

The Cardinals include their parking fee into the cost of each ticket and assign parking lots, i.e., Red, Green, etc., to the ticket holder. A pricey ticket gets you the Red lot. A nose bleed seat gets you the Brown lot and a shuttle over to the stadium. As the former councilmember representing the Desert Mirage and La Buena Vida neighborhoods I raised the concern that fee for parking could push fans into those neighborhoods directly east and across 91st Avenue. The city agreed and established a Neighborhood Protection Program. All mega events (Cardinals’ football games, major concerts, etc.) with attendance of over 40,000 initiate neighborhood protection. Manned barricades are put up and residents have an ID placard identifying their residence in the neighborhood.  It is a system that has worked very well but even with it in place there is a small amount of fan parking that still occurs in those neighborhoods.                                                                    

Back to that casual fan that doesn’t want to pay any fee — $10, $15 or $20 to park. Coyotes’ games have a maximum attendance of nearly 18,000. That is far below the 40,000 needed to initiate the city’s Neighborhood Protection Program. If casual Coyotes fans park in large numbers in those neighborhoods there will be no manned barricades and no means of keeping those fans out of these neighborhoods. There is certain to be push back from residents.  No one wants to see that happen. Is Councilmember Chavira concerned about this issue? Who knows? He was the 4th vote of approval for the IceArizona deal. You would think he would have some clout with them. He should be asking the new ownership group to institute and to pay for the Neighborhood Protection Program for all Coyotes games. That kind of program would drive people back to the fee parking lots – resulting in a better parking payday. After all, part of being a good community partner involves protecting your neighbor from the unintended consequences of your actions. 

©Joyce Clark, 2013

FAIR USE NOTICE
This site contains copyrighted material the use of which has 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, democracy, 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. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those 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.

Instead of its regular meeting time of 1:30 PM the Tuesday, August 20, 2013 council workshop meeting will convene at 9 AM. The 64 million dollar question is will Councilmember Alvarez show up or call in? She’s on the injured reserve list once again. If she does show will pain medication affect her performance or lack thereof?

They will begin with an Executive Session to meet the candidates for the City Attorney’s position. Do we know how many finalists? Do we know who they are? At least when the City Manager’s position was up for grabs we knew a smidgeon about the finalists. This time there is a cone of silence.

prayerThe most interesting and possibly contentious issue for open workshop discussion is to pray or not to pray at the start of the evening meeting. FYI: Only Phoenix has prayer before its council meeting. The cities of Gila Bend, Winslow, Apache Junction, Litchfield Park, Benson and Florence have invocations before their meetings. What’s the difference between an invocation and a prayer? According to the dictionary an invocation is the act of asking for help or support from anyone or anything.  A prayer is a spiritual communion with God or an object of worship. Is it appropriate to start council meetings with a prayer? You can weigh in by participating in my unscientific poll to the left of this article. This issue could become a moot point of discussion as this fall the Supreme Court will take up the issue of prayer at town meetings as it hears the Greece, New York case.

After their discussion of prayer council will move into another Executive Session where once again they will receive information about the external audit. Apparently the audit has been completed. If that is the case, it’s time to let the citizens of Glendale review the result. After all, taxpayers paid a hefty price for it – a half million dollars. It should be presented to all on a gold plated serving tray! Come on, council, it’s time to give it up and direct staff to post the results on the city’s website.

The other item of note in Esession is discussion of the IceArizona management agreement. What could this be about? The council approved the contract with IceArizona with its public vote on July 2, 2013 followed by the sale of the team by the NHL to IceArizona.  Is the contract still under negotiation?  That is the only way it can be discussed in Esession. Here is the exact verbiage used: “Discussion and consultation with the City Attorney and the City Manager to receive an update, consider its position and provide instruction and direction to the City Attorney and the City Manager regarding Glendale’s position in connection with agreements associated with arena management, the Arena, and the Hockey Team, which are the subject of negotiations (bold emphasis mine). [A.R.S 38-431.03(A)(3)(4)(7)].” Note that discussion is permitted in Esession while the negotiations are in progress but negotiations were concluded with council’s vote on July 2nd. Hmmmm…

©Joyce Clark, 2013

FAIR USE NOTICE
This site contains copyrighted material the use of which has 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, democracy, 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. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those 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.

From a very happy Coyotes fan’s perspective

Posted by Joyce Clark on August 6, 2013
Posted in City of Glendale  | Tagged With: , , | 1 Comment

For My Coyotes Family

By Kimberly Radke

August 6, 2013 at 11:15 am, Facebook posting

4 Years, 3 months. That’s how long Coyotes fans have been waiting. Waiting and worrying and above all, hoping. Hoping that the team’s ownership issues would be resolved, hoping that the team would be staying in the desert. Yesterday, to the immense relief of those fans (and probably some our friends who are tired of hearing about it), the saga has ended; and indeed it has ended on high note. The last 4 years, 3 months have been filled with roller coaster moments, controversy and probably a few ulcers. However, even with all of the negativity that has surrounded this saga, it has brought about more than its share of positive moments as well. I know many that will look back on this time with a bitter taste in there mouth and carry with them only the bad memories. But, I think it’s important to recognize how many positives came out of this ordeal.

We learned that a few people with a passion, determination and drive can develop into a small army of people willing to go out and stand in 115 degree heat day in and day out to make sure voters were informed and aware of what they were signing. We learned that a city council member can make more of a difference than we ever knew possible. We learned about city politics, Political Action Committees, water bills and city council meetings. We’ve gained friendships and relationships with people whom we probably would have never crossed paths with otherwise. We saw our team not only make the playoffs3 years in a row, but make it to the Western Conference Final. We won the Pacific Division title for the first time. We gained a coach and a General Manager in Dave Tippet and Don Maloney who have had an unwavering belief in this team and its fans. We saw the reemergence of a leader in Shane Doan, who not only redefined what it is to be a team’s Captain, but exhibited the kind of loyalty not often seen in the professional sports world today. And all of this happened with no owner. And yet our fan base grew. Through all of this, we learned about “hockey the hard way”.

But, in my opinion, as sports fans, perhaps the most positive aspect to be taken from “The Coyotes Ownership Saga”, as it is often called, can be summed up in one word: Camaraderie. The camaraderie that has developed between this franchise, its players and its fans is unique and special. It’s something that those on the outside looking in have rarely, if ever, noticed. But it’s there and we are lucky for it. I think most fans of the sport would agree that hockey produces a different kind of professional athlete. Hockey players as a whole, more times than not, seem to be more down to earth, more accessible, more willing to sign an autograph, pose for a picture or even just have a conversation. However, this team has taken that to a new level. And it’s not just the players. It’s the announcers and reporters, the front office, our season ticket reps, our guest services personnel, our bloggers and everyone in between. We’ve all been through the ups and downs together. We have an understanding of the effects these trials (literally and figuratively) and tribulations have had. And the camaraderie that has developed as a result is amazing and special and unique. And that can never be taken away.

And now we get to celebrate. We get to celebrate IceArizona’s purchase of the team and get to look forward to years of hockey in the desert. But as we begin to move forward, and the team is now “Here To Stay”, and the new owners, GMDM, Tip and Doaner continue to work their magic and grow the fan base, let’s make sure we remember “Hockey the Hard Way”. Many people may never know the names Bea Wyatt and George Fallar, or realize the impact that they have had. Most people will never understand why cupcakes will always make a select few of us laugh, why we think the term “thug” is comical, why our stomachs turn when we drive by a library or what the heck the Order of the Tricky Clam is. And many people may never understand how a hockey team in the desert can have such a strong connection with its fans. And that’s ok, because we know.

Throughout this saga many of us have often said, “Being a hockey fan shouldn’t be like this.” But, the last 4 years, 3 months have truly shown us what it means to be a member of the Pack. And for that, I say we are lucky.

Thank you all….it has truly been an honor to get to know all of you.

In 2009, a scant 4 years ago and what now seems like an eternity in the Coyotes saga; Ice Edge which has now morphed into Renaissance Sports and Entertainment; which has now has a subsidiary called Ice Arizona was in the hunt to purchase the Phoenix Coyotes. Its competitor at the time was Reinsdorf and Kaites.

McCullough

Keith McCullough

Keith McCullough was part of the Ice Edge group and was interviewed on July 31, 2009 by Bloomberg TV. During that interview he was asked about the Ice Edge bid and during the course of his answer at one point he said, “We actually have a 3 to 5 year plan coming out of an economic cycle in an area that we think is opportunistic.”

When asked about their intent to play Coyotes games in Saskatoon and Halifax, Mr. McCullough said, “People in Phoenix don’t want to go to a hockey game anyway. You might as well bring them to Canada where people will go bonkers to watch a hockey game.”

Both of his answers sent the Coyote nation into shock. There was fear and anger that this group’s real intent was to move the team in 3-5 years because in their view the hockey market in Phoenix was not nearly as profitable as the market in Canada.

Recently McCullough has tweeted confirming his involvement in what is now known as Ice Arizona, scheduled to receive the NHL’s Board of Governors’ blessing at any moment as well as consummating the NHL’s sale of the team. Ice Arizona’s current slogan is “Here to stay.” It’s time for McCullough to stand up. Does he still hold to the sentiments expressed on that Bloomberg TV interview? Will he disavow his previous remarks? Has he fully embraced Ice Arizona’s intent of “Here to stay?” Legitimate questions requiring legitimate answers for the Coyote nation.

Fair Use and Copyright

In my last blog $3,109,580 was identified as the shortage Glendale faces with acceptance of the Renaissance Sports and Entertainment (RSE) bid. This requires looking at the city’s overall financial health. A useful measurement is to look at the city’s General Fund “Ending Balance” (it may be called Contingency Fund or Rainy Day Fund). It will be helpful to refer to slides presented at the city council workshop of June 29, 2013. Here is the link:

http://www.glendaleaz.com/Clerk/agendasandminutes/documents/062813CoyotesandArenaMgt.pdf .

coins 1Some historical context is in order. In the early to mid 2000s Glendale’s economy, along with the rest of the nation’s, was robust. The arena had been built, Westgate was taking shape and growing, developers were buying land in the surrounding area and submitting development plans faster than they could be processed. When the national recession first took shape the city had General Fund revenues of $131,807,000 and maintained an Ending Balance of $49,338,000 (well over the city policy of 10%). All “expert” advice, at that time, projected a deep recession of 3-5 years and a slow recovery. Council had the choice of starting to make major budget cuts (including lay-offs) or using its Contingency Fund. It chose to use its Contingency Fund to avoid lay-offs and to weather the recession. Was it the correct decision? Obviously not, but “Hindsight is 20-20.” We now know that budgetary cuts should have been made then, just as municipalities all over the valley did, for cuts are cumulative and can help to alleviate the need for drastic cuts in the future. There were some budgetary cuts made at the time and employee furloughs were instituted but those strategies were not strong or deep enough and came too late to create the desired outcome. Those following the Coyotes saga no doubt recall former Mayor Scruggs complaining bitterly and saying that we were told that Glendale was different and no cuts were necessary. What was done was done but it set up the current fiscal crisis the city now faces. By the end of the decade with the national economy still in recession the previous council had learned a painful lesson and was committed to making budget cuts and began a plan to do so.

We come to the present. The city’s total General Fund revenues for Fiscal Year (FY) 14 are $161,500,000 and projected to increase by a mere $800,000 over the next 5 years (FY 18) to $162,300,000. In the intervening years there are General Fund revenue increases of nearly $18M but they are temporary increases based upon the raised sales tax due to sunset in 5 years. After the 5th year, FY 2018, the sales tax increase sunsets and the General Fund revenue will revert to the level of FY 14. The temporary sales tax increase was designed to do one thing only. That was to provide the city some breathing room while it continued to make budget cuts of $5M a year for 5 years totaling $25M over 5 years AND rebuild its Ending Balance to a minimum of 10% of its General Fund revenues. It WAS a sound plan and a plan that allowed for a hockey lease. It is not the plan of the newly elected council for there are only scheduled cuts of $4.8M in FY15 and $9.5M in FY18 for a total of $14.3M. That is $10M shy of the amount that is needed to replenish the General Fund and will present problems when the sales tax increase disappears—unless this council decides to continue the sales tax increase ad infinitum. I suspect that is exactly what will occur despite its sunset promise included to gain citizen voter support to ratify the increase.

Now add a couple of facts.  First, the Fire Department had a structural deficit of $3.5M this Fiscal Year, FY 14. It was fixed by budget amendments passed by council 6 weeks ago and on June 28th. It solved the problem—for this year only. Next year the Fire Department will face the same structural deficit of $3.5M with no direction given by this council as to where and how this money is to be found. Our contractsecond fact is at the June 25th voting meeting of Council a restructured contract with Southwest Ambulance was approved. (FYI: SW’s Martin Nowakowski, its Public Affairs Director, is a friend of Norma Alvarez and Sammy Chavira and supported both in their election bids) The old contract called for 2 ambulances that were in operation 5 days a week for 9 hours a day. The new contract calls for 3 ambulances in operation 7 days a week for 24 hours a day. It results in an increase of future expense to the city, in this contract of $1M. It is possible that SW may pick up $400,000 of the million dollars but there is still an increased contract cost of $600,000 that is a new city obligation. And it may interest you to know that city personnel assisting on these ambulances are paid overtime pay by Glendale. What a sweet deal. Council was briefed and was made fully aware of the increased cost to the city. Neither example of fact has corresponding cuts in other areas. In particular, the Southwest Ambulance vote passed without a single councilmember question regarding it. These two fiscal examples demonstrate that council still refuses to recognize the serious financial condition of the city.

The city’s Ending Balance for this Fiscal Year, FY 14, is $8M and equals only 5% of the General Fund revenues — not a good position in which the city finds itself. The good news, however, is that it does grow in the next 5 years and by FY 18 is $20.3M (or 12% of General Fund Revenues).

Why is the Ending Balance or Contingency so important? First, it is a measurement that bond raters look to in order to determine a city’s creditworthiness. It’s like an individual’s FICO score. The higher it is the lower the interest rate. It serves a second purpose in that it can be drawn upon in an emergency or when unexpected expenses occur. For instance, the $120,000 paid for a search of a new City Manager and the $500,000 for the audit as well as the Beacon consultancy contract were paid from Contingency as these were new, unbudgeted expenses. Contingency can be used to cover increases in the price of gas for city vehicles and it can be used to cover unplanned increases in medical premium costs. Right now, with only $8M in reserve, the city is living on the edge.

How does acceptance of the RSE bid affect the city’s Ending Balance (Contingency Fund)? Instead of $8M in reserve this year, it drops to $5.7M or 4% of the city’s revenues. By FY 18 instead of a healthy Contingency of $20M it is only $8.6M (in other words, in 5 years, it is exactly the same as today).

How does acceptance of the RSE bid affect the city’s budget? Its revenues do not change but its expenses have increased by $9M as the city goes from paying a $6M a year management fee to a $15M a year management fee. We must factor in the “enhanced revenue streams” and in doing so the city projects a $2.3M shortage for this budget year (FY 14). I have shown a figure of $3.1M which I believe to be more realistic. However, whichever figure is used, there is a shortage that has to be covered.

If the RSE bid is accepted there are only three ways that the shortage can be covered. Some explanation is required to better understand Option #3 offered below. The city established an escrow account by borrowing money from other funds, i.e., Sanitation, Vehicle Replacement, etc. It has $20M in it – not quite the full $25M owed to the NHL for the second year of arena management. If the RSE bid is accepted the NHL has publicly stated that they will accept payment of that $25M in installments of $5M a year for 5 years. The options are:

  1. question 3The city can make further budget cuts in FY 14 by reducing service levels to residents, cutting more employees or trying to find further efficiencies
  2. It can pay the shortage from the  Contingency Fund by drawing down the balance to $2 or $3M instead of the current $5.7
  3. It can use the $20M reserved in its escrow account, earmarked for the second NHL payment of $25M, and bring down the reserved escrow amount by paying the NHL $5M this year and covering only this year’s shortfall of $2-3M

Imagine yourselves as a current councilmember for just a moment—not a Coyotes fan or a Ken Jones aficionado—but as someone charged with sound financial decisions for the city. Would you accept or reject RSE’s bid? If you chose to accept RSE’s bid which of the 3 options would you choose? Would you reexamine this council’s current financial plan to make strategic cuts and perhaps save Westgate and its future or would you make a leap of faith and decide that an anchor tenant is not necessary? It’s in your hands. In my next installment I will review items within the RSE contract that remain problematical for the city and could be resolved with further negotiation.

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