HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 5/10/2011 " ll
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GLENDfl
MINUTES OF THE
GLENDALE CITY COUNCIL MEETING
Council Chambers
5850 West Glendale Avenue
May 10,2011
7:00 p.m.
The meeting was called to order by Mayor Elaine M. Scruggs, with Vice Mayor Steven E. Frate
and the following Councilmembers present: Norma S. Alvarez, Joyce V. Clark, Yvonne J.
Knaack, H. Philip Lieberman and Manuel D. Martinez.
Also present were Ed Beasley, City Manager; Craig Tindall, City Attorney; and Pamela Hanna,
City Clerk.,
The Mayor welcomed Boy Scout Troop 720 from Arrowhead who were there working on their
Citizenship;in the Community merit badge.
COMPLIANCE WITH ARTICLE VII, SECTION 6(c) OF THE GLENDALE CHARTER
A statement was filed by the City Clerk that the 5 resolutions to be considered at the meeting
were available for public examination and the title posted at City Hall more than 72 hours in
advance of the meeting.
APPROVAL OF THE MINUTES OF THE APRIL 26, 2011 CITY COUNCIL MEETING
It was moved by Clark, and seconded by Frate, to dispense with the reading of the minutes of the
April 26,2011 Regular City Council meeting, as each member of the Council had been provided
copies in advance, and approve them as written. The motion carried unanimously.
PROCLAMATIONS AND AWARDS
2011 RUTH BYRNE HISTORIC PRESERVATION AWARD
This is a request for City Council to present the 2011 Ruth Byrne Historic Preservation Award to
the Thunderbird Tower Restoration Project Committee together with the Thunderbird
Community.
This award is being presented in recognition of their hard work in restoring the Thunderbird
Control Tower building on the campus of the Thunderbird School of Global Management. Mr.
Will Counts, Project Manager for the Thunderbird Tower Restoration Project Committee, will be
present to accept the award.
The Ruth Byrne Historic Preservation Award was established in 1996. The purpose of the award
is to recognize individuals or organizations that have made significant contributions to the
preservation of Glendale's historic and cultural resources. This prestigious award is named after
Ruth Byrne, a Glendale native, in honor of her dedicated work and ongoing efforts to preserve
Glendale's history.
Each year, Council presents the award during the month of May to coincide with National
Historic Preservation Month. After careful review and evaluation, the Historic Preservation
Commission selected the Thunderbird Tower Restoration Project Committee along with the
Thunderbird Community as the award recipients.
The tower has been the icon of the school grounds for 60 years. The tower was built in 1941,
and served as the air control tower and officers' quarters during the operation of the Thunderbird
1 Army Air Field, where American, British, Canadian, and Chinese pilots trained during World
War II.
In January 2006, the tower closed due to structural issues. In the fall of 2007, a student-led task
force initiated a project to restore the tower. Andrew Burman, Will Counts, and Rebecca
Mitchell, Thunderbird students,spearheaded the project and started a vigorous campaign to raise
money for the restoration.
The tower restoration embraces a commitment to a sustainable future by incorporating several
green elements into the design and engineering plans of the restoration project. Part of those
efforts included salvaging and reusing materials from the building, using natural day lighting to
reduce energy usage, and employing state-of-the-art water saving techniques.
The exterior of the restored building retains many of its original features such as the floor plan,
original steel windows, and exterior finish. The observatory, the most intriguing portion of the
tower, has been restored to its original glory. The project's vision to maintain the history of the
building and to replicate the events that gave rise to its birth; was realized in the interior spaces
of the building by providing places for people to meet in a setting reminiscent of Thunderbird's
history.
The project is a wonderful testimony and commitment to environmental sustainability and an
outstanding contribution to the preservation of Glendale's historic heritage. The tower
dedication celebration will be held in conjunction with Thunderbird's 2011 homecoming
activities on November 11, 2011.
The recommendation is to present the 2011 Ruth Byrne Award to Mr. Will Counts, who will
accept on behalf of the Thunderbird Tower Restoration Project Committee and the Thunderbird
Community.
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Mayor Scruggs called forward Mr. Will Counts, who will accept on behalf of the Thunderbird
Tower Restoration Project Committee and the Thunderbird Community.
Mr. Count accepted the award on behalf of the Thunderbird Tower Restoration Project
Committee and the Thunderbird Community. He stated they were the number one international
business school in the world. He noted they have been ranked in the Financial Times and in the
Wall Street Journal, 16 years in a row, as number one for graduate degrees in International
Business. Thunderbird started in 1946 and is trying to maintain their treasures in some older
buildings as well as Thunderbird Tower. He indicated an interesting fact about Thunderbird was
that Ms. Byrne met her husband there. He encouraged people to visit the Tower to learn about
the history of this historic landmark.
Mayor Scruggs stated that in 2009, Thunderbird had a ground breaking ceremony for this
fantastic project. She explained the campus brings forth a tremendous sense of history,
especially when you think about what used to be there and how it's been transformed. She noted
Thunderbird School was a very little known treasure and an asset known better internationally
than in Glehdale. She encouraged everyone to find out information about the donor wall mission
which was available to anyone who makes any contribution to this project. Your name will be
added to the donor wall of this prestigious educational facility and on this historic landmark
building. Ijn addition, if anyone would like to be part of the legacy of Thunderbird School and
Tower, pleUse contact her office.
NATIONAL PUBLIC WORKS WEEK PROCLAMATION
This is a request for City Council to proclaim the week of May 15, 2011 as National Public
Works Wek in the City of Glendale.
The American Public Works Association is designating May 15 - 21, 2011 as National Public
Works Week. The purpose of this designation is to celebrate the tens of thousands of men and
women in North America who provide and maintain the infrastructure and services collectively
known as 'public works. This proclamation seeks to raise the public's awareness of the
contributions which Public Works employees make in the community, and to honor the
professional men and women who serve the public good every day with quiet dedication.
Public Works includes programs and services such as land development and flood control,
environmental and facilities engineering, street design and maintenance, equipment and facility
maintenance, right-of-way beautification, graffiti removal, and solid waste services. In addition,
Public Works personnel are among the first responders during emergencies and natural disasters,
often going above and beyond the call of duty in order to quickly maintain and restore needed
city services. Public Works personnel continue to work diligently to complete cleanup efforts
after the crisis is over, and long after other first responders have departed.
The recommendation is to proclaim the week of May 15, 2011 as National Public Works Week
in the City'',of Glendale,and present the proclamation to Mr. John Trujillo on behalf of the city's
Public Works Group.
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Mr. John Trujillo, President of the Arizona Chapter of the American Public Works Association,
will be present to accept the proclamation on behalf of the city's Public Works Group.
Mr. Trujillo thanked the Mayor and Council for inviting him to accept the proclamation on
behalf of the public works group. He stated National Public Works week was started in 1960
raising public awareness about public works issues and its employees who are dedicated to
improving the quality of life for present and future generations. He thanked the City of Glendale
for supporting the public works efforts and declaring public works week with this proclamation.
Mayor Scruggs asked all public works employees who were in the audience tonight to please
stand and be recognized.
CONSENT AGENDA
Mr. Ed Beasley, City Manager, read agenda item numbers 1 through 5 and Ms. Pamela Hanna,
City Clerk,read consent agenda resolution item numbers 6 through 10 by number and title.
Councilme ber Lieberman requested that Agenda Items No. 5 and No. 10 be heard separately.
1. LIQUOR LICENSE NO. 5-717, SHANGRI-LA CHINESE CUISINE
This is a request for City Council to approve a new, non-transferable series 12 (Restaurant)
license forShangri-La Chinese Cuisine located at 18561 North 59th Avenue, Suites 120-122.
The Arizona Department of Liquor Licenses and Control application (No. 12078696) was
submitted Icy Kim Han Huynh.
The locatk n of the establishment is 18561 North 59th Avenue, Suites 120-122 in the Cholla
District. The property is zoned SC (Shopping Center). The population density within a one-mile
radius is 12,623. This series 12 is a new license; however, the approval of this license will not
increase the number of liquor licenses in the area because this license replaces the previous one
held at this location. The current number of liquor licenses within a one-mile radius is as listed
below.
Series Type Quantity
06 Bar-All Liquor I
07 Bar-Beer and Wine 1
09 Liquor Store -All Liquor 2
12 Restaurant 9
Total 13
The Maricopa County Health Department and the City of Glendale Planning, Police, and Fire
Departments have reviewed the application and determined that it meets all technical
requirements.
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No publicrotests were received during the 20-day posting period.
Based on i formation provided under the background, it is staff's recommendation to forward
this application to the Arizona Department of Liquor Licenses and Control with a
recommendation of approval.
2. LIQUOR LICENSE NO. 5-763, GLENDALE MINI MART
This is a request for City Council to approve a new, non-transferable series 10 (Liquor Store -
Beer andine) license for Glendale Mini Mart located at 5904 West Glendale Avenue. The
Arizona D partment of Liquor Licenses and Control application (No. 10076148) was submitted
by Simon assim Isaac.
The location of the establishment is 5904 West Glendale Avenue in the Ocotillo District. The
property is zoned C-2 (General Commercial). The population density within a one-mile radius is
20,981. The Glendale Mini Mart is currently operating with an interim permit, therefore, the
approval of this license will not increase the number of liquor licenses in the area. The current
number of liquor licenses within a one-mile radius is as listed below.
Series Type Quantity
06 Bar-All Liquor 3
07 Bar- Beer and Wine 1
09 Liquor Store -All Liquor 3
10 Liquor Store - Beer and Wine 12
12 Restaurant 13
14 Private Club 3
Total 35
The Maricopa County Health Department and the City of Glendale Planning, Police, and Fire
Departments have reviewed the application and determined that it meets all technical
requirements.
No public protests were received during the 20-day posting period.
Based on information provided under the background, it is staff's recommendation to forward
this application to the Arizona Department of Liquor Licenses and Control with a
recommendation of approval.
3. AWARD OF BID 11-45: AGGREGATE BASE COURSE MATERIAL
This is a request for City Council to authorize the award of Bid 11-45 to Mesa Materials Inc. in
an amount not to exceed $130,551 for the purchase of crushed aggregate base course material
(ABC). j
This request supports Council's goal of one community with high-quality services for citizens by
supplying the materials necessary to restore road surfaces for motorists and pedestrians.
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ABC is a road material used in restoring roadways after a water or sewer main repair. It is a
mixture of rock and sand used as a sub-grade prior to pavement restorations and prevents road
settling. A arding this bid will provide material for scheduled line replacements, as well as for
any emerge cy water and sewer line breaks where large amounts of base material are required.
Nine offers were received in response to Bid 11-45. The lowest responsible offer was received
from Mesa Materials Inc. The bid award shall commence upon approval by Council and
continue foi one year. The bid contains an option that will permit the city to extend the bid for
an additio al five years in one-year increments. Price adjustments are permitted annually if
mutually atreed upon by both parties. The city can accept or reject the price adjustment. If the
city accept the price adjustment, the contract will be extended for one year. If the city rejects
the price a. ustment, the contract will be sent out for bid.
On May 2 , 2006, Council approved the award of Bid 06-26 for ABC material. The contract
expires on une 13, 2011.
Funds are vailable in the FY 2010-11 operating budget of the Utilities Department.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X $130,551
Account Name, Fund,Account and Line Item Number:
Water Distribution, Account No. 2400-17290-524400, $130,551
The recommendation is to award Bid 11-45 to Mesa Materials Inca for the purchase of crushed
aggregate base course material in an amount not to exceed $130,551 for the initial award and
authorize tle city to extend the award for an additional five years in one-year increments with
price adjus ments in accordance with Bid 11-45.
4. MOT 0 ROLA RADIO PURCHASE
This is a r•quest for City Council to approve the purchase of radios and accessories from the
State of Ar zona contract with Motorola, Inc. and authorize the City Manager, or his designee, to
execute an and all documents necessary to effectuate the purchase.
This item ddresses Council's goal of one community committed to public safety by providing
firefighters updated communication equipment to continue to respond to calls for service.
The city :ntered into an intergovernmental agreement with Regional Wireless Cooperative
(RWC) N .work. The RWC is a coalition designed to create efficiency and reduce costs for
transition t• the new radio system while creating a valley-wide communication system. Valley
Fire Dep.rtments are now using the RWC Network for automatic aid related radio
communic tions in non-hazardous zones. This includes the following cities and towns:
Avondale, Buckeye, Chandler, El Mirage, Goodyear, Guadalupe, Maricopa, Peoria, Phoenix,
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Scottsdale, Surprise, and Tempe. Daisy Mountain, Sun City, Sun City West, and Sun Lakes fire
districts aralso using the RWC Network.
The Fire D partment has operated on a VHF system and has been part of the Phoenix Regional
Automaticid system for almost 30 years. The purchase of the mobile multi-band radios from
Motorola, Iic. is an upgrade necessary to participate in the RWC Network. Motorola, Inc. is the
current suplier of mobile radios through the State of Arizona contract. The radios will be
installed in all emergency response vehicles.
On February 22, 2011, Council approved the entering into of an intergovernmental agreement
with the Regional Wireless Cooperative Network.
Purchasef the radios will allow firefighters to continue to provide timely communication
services to he community.
Funding is available in the FY 2010-11 capital improvement plan of the Fire Department. The
equipment purchased through this request has a one-year warranty. After that period, the Fire
Resource Management budget will absorb the operating and maintenance costs associated with
the equipment.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X X $247,151.30
Account Name, Fund,Account and Line Item Number:
800MHz Comm Equip, Account No. 2040-75024-551400, $247,151.30
The recomendation is to approve the purchase of radios and accessories from the State of
Arizona co' tract with Motorola, Inc. in an amount not to exceed $247,151.30 and authorize the
City Mana er, or his designee, to execute any and all documents necessary to effectuate the
purchase.
CONSENT RESOLUTIONS
6. AMENDMENT NO. 2 TO THE INTERGOVERNMENTAL AGREEMENT WITH
MARICOPA COUNTY FOR CHILDHOOD IMMUNIZATIONS
This is a rquest for City Council to adopt a resolution authorizing the City Manager to approve
a second amendment to the intergovernmental agreement (IGA) with Maricopa County
Departmen of Public Health for childhood immunization services provided by the Glendale Fire
Departmen .
The request addresses Council's goal of one community committed to public safety by providing
free immu izations to children in order to reduce the occurrence of childhood diseases.
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Since the city entered into this IGA in 2009, Fire Department paramedics have immunized over
5,000 children against seasonal influenza and childhood diseases in 20 Glendale Elementary
School ba ed clinics. Additional clinics were conducted in cooperation with the Maricopa
County De artment of Public Health at their Glendale facility.
The IGA pproved in 2009 was for the period of June 23, 2009 through May 30, 2010. It
contained right to extend provision which allowed the IGA to be extended for additional one
year terms, not to exceed a total term of five years. The compensation for the original IGA was
$75,000. mendment No. 1 in 2010 extended the IGA for another year starting May 31, 2010
through Julie 2, 2011 for a budget amount of$75,000. This Amendment No. 2 extends the IGA
starting June 3, 2011 to June 2, 2012 and provides another $75,000 to be used during the
extension period.
Glendale is designated as a Metropolitan Medical Response System (MMRS) city by the Federal
Emergency Management Agency. As part of the MMRS Biological Response Plan, the Fire
Departmen is expected to participate in public immunizations, provide staffing at vaccination
clinics and perate vaccination clinics in times of crisis.
On May, 2I5, 2010, Council authorized the City Manager to approve Amendment No. 1 to the
intergovernmental agreement with Maricopa County Department of Public Health for childhood
immunizatilon services by the Glendale Fire Department.
On June 23, 2009, Council authorized the City Manager to enter into an intergovernmental
agreement with Maricopa County Department of Public Health for childhood immunization
services by the Glendale Fire Department.
Through this agreement, the Fire Department will be able to continue conducting and
participating in childhood immunization clinics that help to reduce the occurrence of childhood
diseases in the community.
There is no cost to the city for providing childhood immunizations through this IGA. The county
will continue to provide federal pass-through funding for each child that the Fire Department
vaccinates, at a rate of$15 per child up to an annual limit of$75,000.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X $75,000
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Account Name, Fund,Account and Line Item Number:
A specific project account will be established in Fund 1840,the city's grant fund, once the
amendment to the IGA is formally executed.
The recommendation is to waive reading beyond the title and adopt a resolution authorizing the
City Man Iger to approve a second amendment to the intergovernmental agreement with
Maricopa ounty Department of Public Health for childhood immunization services by the
Glendale Fre Department.
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Resolution No. 4476, New Series was read by number and title only, it being A
RESOLD ION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY ARIZONA, A RESOLUTION OF THE COUNCIL OF THE CITY OF
GLENDA E, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING
THE ENTERING INTO OF AMENDMENT NO. 2 TO THE INTERGOVERNMENTAL
AGREEMENT WITH THE MARICOPA COUNTY DEPARTMENT OF PUBLIC
HEALTH FOR CHILDHOOD IMMUNIZATION SERVICES BY THE GLENDALE
FIRE DEPARTMENT.
7. ACCEPTANCE OF GRANT FUNDING FROM THE ARIZONA GOVERNOR'S OFFICE
OF HIGHWAY SAFETY
This is a request for City Council to adopt a resolution authorizing the City Manager to accept an
Arizona Governor's Office of Highway Safety Click It or Ticket grant in the approximate amount
of$10,000.'
This request supports Council's goal of one community committed to public safety by providing
the Police Department a means to focus on seat belt and car seat enforcement.
This grant award will support the Police Department by providing overtime funding for
personnel uring the grant period between May 23, 2011 and June 5, 2011. This will allow the
department to increase the number of hours officers dedicate specifically to seat belt and car seat
enforceme t during the national two-week Click It or Ticket enforcement campaign. The Police
Departmen has been participating in Click It or Ticket enforcement campaigns for several years.
On September 8, 2009, Council approved acceptance of grant funding from the Arizona
Governor's Office of Highway Safety for the Click It or Ticket program.
This grant will benefit the Glendale community and the citizens by allowing the Police
Departmen to provide additional hours of police officer patrol time dedicated to enforcing seat
belt violati ns. Worn correctly, seat belts can significantly reduce the risk of fatal injury. High
visibility e forcement of seat belt laws, like the Click It or Ticket program, has been effective in
raising the awareness and the importance of seat belt and car seat usage.
There is nonfinancial match required for this grant.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X $10,000
Account Name, Fund,Account and Line Item Number:
A specific account will be established in Fund 1840,the city's grant fund, once the grant
agreement is formally executed.
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The recommendation is to waive reading beyond title and adopt a resolution authorizing the City
Manager to accept an Arizona Governor's Office of Highway Safety Click It or Ticket grant in
the approximate amount of$10,000.
Resolution No. 4477, New Series was read by number and title only, it being A
RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY, ARIZONA, A RESOLUTION OF THE COUNCIL OF THE CITY OF
GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE ENTERING
INTO OF A HIGHWAY SAFETY CONTRACT WITH THE GOVERNOR'S OFFICE OF
HIGHWAY SAFETY FOR THE CLICK IT OR TICKET PROGRAM BY THE
GLENDALE POLICE DEPARTMENT.
8. MEMORANDUM OF AGREEMENT WITH THE BUREAU OF ALCOHOL, TOBACCO,
FIREARMS AND EXPLOSIVES
This is a request for City Council to adopt a resolution authorizing the Police Chief to enter into
a memorandum of agreement (MOA) with the U.S. Department of Justice, Bureau of Alcohol,
Tobacco, Firearms and Explosives (ATF) for reimbursement of overtime salary costs and other
costs associated with ATF Task Force.
This MOA supports Council's goals of one community committed to public safety and one
community that are fiscally sound by enabling the Police Department to obtain reimbursement
for assistance to ATF Task Force.
The Police Department currently assists ATF Task Force on an as-needed basis during local gun
shows and various work details within the city. The purpose of this MOA is for ATF to
reimburse vertime salary costs and other costs, including but not limited to travel, fuel, training
and equip ent, incurred by the Police Department in providing resources to assist ATF.
Assisting t e ATF Task Force enhances the Police Department's opportunities for information
sharing.
This MOA will provide the Police Department with access to additional resources to combat
alcohol, tobacco and firearm related crime within the city, benefiting the Glendale community
and the citizens.
The recommendation is to waive reading beyond the title and adopt a resolution authorizing the
Police Chief to enter into a memorandum of agreement with the U.S. Department of Justice,
Bureau of Alcohol, Tobacco, Firearms and Explosives for reimbursement of overtime salary
costs and other costs associated with the ATF Task Force.
Resolution! No. 4478 New Series was read by number and title only, it being A
RESOLD ION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY ARIZONA, A RESOLUTION OF THE COUNCIL OF THE CITY OF
GLENDA E, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE ENTERING
INTO F AN INTERGOVERNMENTAL AGREEMENT WITH THE U.S.
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DEPARTMENT OF JUSTICE, BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND
EXPLOSIVES (ATF) FOR THE REIMBURSEMENT OF OVERTIME SALARY COSTS
ASSOC'• TED WITH THE ATF TASK FORCE BY THE GLENDALE POLICE
DEPART ENT.
9. FIBE' OPTIC NETWORK LICENSE AGREEMENT
This is a r:quest for City Council to adopt a resolution authorizing the City Manager to execute a
license ag eement between the city and TCG Phoenix (TCG), for the placement of an
undergrou d fiber-based communications network within public rights-of-way.
Granting t e license supports Council's goal of one community with high-quality services for
citizens b allowing TCG access within public rights-of-way for installation of additional
telecomm 1 ications and data transmission capabilities for the community.
TCG cont.cted the city to request permission to expand its existing network in the valley into
Glendale. CG's infrastructure investment in the West Valley allows them to meet their current
and future lients' connection needs and the growing demand for fiber optic telecommunications
service including cable, telephone and internet. It is anticipated that the installation will begin
late 2011 ith the majority of the work completed within 18 months.
TCG prov'des service to other parts of the valley. Granting the license will create additional
benefits to ensure future economic development and provide Glendale's residents with improved
state-of-thi-art service.
The reven a generated from plan review, permit and inspection fees associated with the project
during the first 18 months of this license is projected at$40,000. Additionally, TCG shall pay to
the city th Privilege Tax of 5.4% of its gross revenue per year per City Code 21.1-470. All
revenue sh 11 be deposited into the General Fund.
Waive reading beyond the title and adopt a resolution authorizing the City Manager to execute a
license ag eement with TCG Phoenix, for the placement of an underground fiber-based
communic tions network within public rights-of-way.
Resolutions No. 4479 New Series was read by number and title only, it being A
RESOLU ION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY ARIZONA, A RESOLUTION OF THE COUNCIL OF THE CITY OF
GLENDA E, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE CITY
MANAG R TO EXECUTE A LICENSE AGREEMENT FOR FIBER OPTIC
NETWO'K WITH TCG PHOENIX IN GLENDALE,ARIZONA.
It was mo ed by Frate and seconded by Knaack, to approve the recommended actions on
Consent • genda Item Nos. 1 through 4 and 6 through 9 , including the approval and
adoption s f Resolution No. 4476, New Series, Resolution No. 4477, New Series, Resolution
No. 4478, New Series, Resolution No. 4479, New Series, and Liquor License No. 5-717,
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Shagri-La Chinese Cuisine, Liquor License No. 5-763, Glendale Mini Mart to the State of
Arizona I epartment of Liquor Licenses and Control, with the recommendation for
approval, he motion carried unanimously.
5. APPE• L OF DECISION IN TOHONO O'ODHAM v. CITY OF GLENDALE et al.
Craig Tind.11, City Attorney, presented this item.
This is a 1 equest for City Council to affirm its direction to the City Attorney to take all
reasonable, necessary and prudent actions to oppose the Tohono O'odham's plan to create a
reservation within Glendale, which would include seeking full appellate review in the matter of
Tohono O'IIdham v. Ci of Glendale et al.
On April 7 2009, the Glendale City Council passed and adopted Resolution 4246, New Series,
authorizing the City Attorney to take all reasonable, necessary and prudent actions to oppose the
Tohono 0'a dham's (T.O.'s)plan to create a reservation within Glendale for the purposes of
gaming. .O.'s plan has been strongly opposed by United States Senators, Congressmen,
Arizona's 1 overnor, the Arizona Legislature, and the Arizona Attorney General. It has also
been oppo'ed by nine of Arizona's Indian tribes; no Arizona tribe supports T.O.'s plan. The
tribes recognize that the T.O.'s plan is directly contrary to the promises Arizona's gaming tribes
made to th voters in 2002 and will be detrimental to Indian gaming in Arizona.
On July 2 , 2009, the Tohono O'odham tribe (tribe) sued the City of Glendale and each
individual ouncilmember disputing the City's annexation of a portion of the land they desire to
remove froth state and local jurisdiction and convert it into a quasi-sovereign Indian reservation.
In March 2 10, Glendale prevailed in that lawsuit and the tribe filed an appeal. On May 3,2011,
the Arizon Court of Appeals reversed the trial court. The City's recourse is to petition the
Arizona S preme Court to take under consideration this matter, which has substantial
implication to all cities and towns in Arizona.
On June 23, 2009, the City of Glendale adopted Ordinance No. 2688, New Series to give effect
to the actio taken by the Glendale City Council on the annexation of real property on November
27, 2001.
The recom endation into affirm direction to the City Attorney to take all reasonable, necessary
and prude t actions to oppose the Tohono O'odham's plan to create a reservation within
Glendale, hich would include seeking full appellate review in the matter of Tohono O'odham
v. Ci of f lendale et al.
Councilme ber Lieberman asked if this motion was to appeal the decision of the Arizona
Supreme Curt regarding the annexation. Mr. Craig Tindall, City Attorney, explained that the
city has to first petition to the Arizona Supreme Court to take this on as an appeal for the
annexation. Councilmember Lieberman asked if the city had already spent $11/4 million in
taxpayer ful ds in their battle against the Tohono O'odham Nation. Mr. Tindall responded that
was appro imately the amount. Councilmember Lieberman asked how much more will this
appeal end p costing both in dollars and time. Mr. Tindall noted that both were hard to estimate
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since it depends on whether the court hears the case. Councilmember Lieberman noted they were
not even s re the Arizona Supreme Court will hear this case. Mr. Tindall agreed and explained
the appeal .rocess.
Mayor Sc ggs asked for public comments.
Ken Jones, an Ocotillo resident, remarked how tired he was of the back and forth on this issue
which was causing a lot of distress in the community. He supports the casino and hopes the city
will stop sending taxpayer money fighting this issue. He said he bought a fancy new shirt for
when the c:sino opens in Glendale.
Anna Lee, a Sahuaro resident, stated she has been a Glendale resident for over 26 years and a
member ofthe Salt River Maricopa Indian Community. She has been active in the community
and owns business in the Sahuaro District. She does not support a casino in the middle of
Glendale a d was thankful for the Council's opposition on this matter. She feels very strongly
about this ssue and will do anything she can to support the city. She indicated there were too
many thin s wrong with this situation, especially the location of the casino near a school. She
added that many in the business community were also against it, but were afraid to speak in
public.
B. J. Enos, a Sacaton resident, stated he was a member of the Gila River Indian Community and
was here t night to commend the Council on their leadership and continued efforts to appeal this
process. a explained the Gila River Indian Community's position has been a matter of
principal a d one that dates back to 2002 with the voters approved Proposition 202. With that,
there was promise by the tribes to adhere to very specific rules which are being jeopardized by
this initiati a moving forward by the Tohono O'odham Nation. He stated the Gila River Indian
Communit will continue to oppose this initiative to insure the state of Arizona and other tribal
governme is are not jeopardizing what was agreed upon. This initiative promised to keep
gaming an casinos outside of neighborhoods and away from schools.
Valerie R.11er, a Cactus resident, stated she was not for or against the casino; however, was
against the city spending taxpayer money on this issue. She indicated the state was already
involved i a lawsuit over the tenth amendment rights on this issue and it was redundant for the
city to be .pending taxpayer money to do something the state was already doing. She would
appreciate he city not continue with this frivolous lawsuit.
George S.rankle, a Cactus resident, stated the city of Glendale has already spent too much
money fig ting the casino. He explained it was not in the city's best interest to continue to spend
more taxp.yer money. He believes the city has been very short-sighted in looking at this and
feels this ill bring in a lot of revenue and help the community too. He noted the casino was not
located ne.r a school as people mistakenly said, but had land between the proposed areas. He
believes t e bottom line for this development was money and greed. He remarked the city
continues o spend taxpayer money and the Gila River Indian Community does not want the
casino buil because it will give them competition.
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Arthur L. hruston, a Cactus resident, stated he was here to support the casino because the city
needs the c=sino. He stated developing the casino did not mean the city would have a reservation
in the mid le of Glendale. He referenced the City of Scottsdale as an example. He also
remarked en the school issue and how there were no schools next to the casino. He noted high
schools wi I always have drug issues and the casino was not the cause for it. He explained the
issue regard ing competition as the reason why other tribes were against it. He believes the
casino will be an asset to Westgate and will bring additional traffic into the area as well as much
needed jo s. He noted for the record, he has never been to a casino in Arizona; however,
believes th's was good for Glendale.
Robin Be hill, an Ocotillo resident, stated she was a 16 year resident of Glendale and felt
compelled o speak tonight. She believes the problem with the casino did not start with hidden
agendas fr m the Tohono O'odham Nation, but rather started with the Council allowing land in
the heart o 'the sports district to be unincorporated. The nation was allowed to purchase it with
the agreem nt from the federal government to replace land on which the government built a dam.
She noted f the nation was guilty of a hidden agenda, then so was the city of Glendale when in
the dark of night they moved the Coyotes from Scottsdale and the Cardinals from Tempe. She
disagrees with some Councilmembers who state this was a foreign Nation. She believes they are
actually a overeign Nation that preceded the United States of America. She would like the
Council to make peace with the Nation and find a compromise that will allow them to build a
casino. T is will bring jobs and enhance the sports district. She believes the Tohono O'odham
Nation was willing to discuss terms with the city to find a compromise. She asked the Council to
stop spendi g taxpayer money on this issue because the city cannot afford it.
Mayor Sc ggs asked for any other comments.
Councilme ber Clark stated that a speaker had mentioned this issue came down to money and
greed. Sh- said she agreed; however, this was not one-sided. She indicated the Tohono
O'odham 1 ation was pursuing a path that will enrich them immeasurably while ignoring the
provisions of the voter approved compact of 2002 and the comment of their brother Indian
Nations. S e noted that when certain people point the finger at them,they better be pointing it at
themselves for supporting the Tohono O'odham Nation because there was a motive for greed on
that side as well. She explained the casino will make a lot of money that does not come back to
the city. S e reiterated for all the people wanting the city to negotiate, she could not negotiate
with a gro p of people who had the audacity to keep their purchase secret for six years. She is
not interest-d in pursuing that at this time; however, was interested in moving forward legally, as
far as Glen ale can,to keep the Tohono O'odham Nation from putting a reservation in the middle
of Glendal .
Councilmember Lieberman expressed his disagreement with fellow councilmember Clark. He
stated the Tohono O'odham Nation has donated in the past four years, in the form of grants, more
than $1.3 illion to health care facilities. He said he had a chart to show that fact. He noted the
lead surge n in Gabby Giffords' case had thanked the Indian Casinos for their support of the
health facilities. He explained a big issue on the casinos was that they did not pay sales taxes;
however, either does the Super Bowl, the Fiesta or BCS Bowl. He discussed the job
opportuniti s as well as additional employees moving into the area and paying sales taxes. He
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referenced the school issue and kids buying lottery tickets at area Circle Ks which was also a
form of ga bling, with which no one had an issue. He explained the Council will soon be voting
to support a Super Bowl bid for 2015 and the Super Bowl worldwide was the single biggest
gambling say in the world. He remarked he has lived in Glendale for 47 years and this was his
421st Cott' cil meeting. He discussed his business background which made him aware that
having a c.sino in Westgate will be a great asset, especially the hotel aspect. He provided
examples if other communities that have tourist seasons most of the year because they offer
similar am.nities such as the casinos which they visit year round. He stated he will vote against
the appeal :nd does not support spending any more taxpayer money. He noted they were fighting
a losing ba tle. He added the city had taken $2.4 million from other city expenditures and placed
it in the le&al department, which was the money being used to fight this battle.
Councilme ber Alvarez stated she also supports the casino. She indicated the Nation had every
right to ha e a business in Glendale. The Nation has not asked the city for any money and is
willing to say the city for any service the city provides. She noted that as Councilmember
Lieberman stated, they were using taxpayer money that could be used in the community. She
indicated t e Nation was as American as they were, therefore not a foreign nation. She added
they must espect them as they respect each other. She suggests they make peace and try and
form a part ership with them for the betterment of all, instead of spending money on lawsuits.
Councilme ber Lieberman commented on the Tohono O'odham Nation being a sovereign
nation. H, reminded everyone that the Apaches and Hopi Indians were also from sovereign
nations. T ey were also one of the most cited outfits in the Second World War and were called
"The Code Talkers". He noted they were proud to fight in the war and proud their nation was
America.
It was mo ed by Martinez, and seconded by Clark, to move forward with the appeal of the
decision o TOHONO O'ODHAM v. CITY OF GLENDALE, et al. The motion carried
with Lieberman and Alvarez voting Nay.
10. AUT ORIZATION TO EXTEND THE NHL/ARENA MANAGEMENT AGREEMENT
Arthur Ly ch, President and CEO, SRJ Government Consultants, presented this item.
This is a rrquest for City Council to adopt a resolution granting the City Manager authority to
extend the management agreement between the city and the NHL, and secure the financial
mechanis s that are reasonably necessary to satisfy the NHL's requirements in order for the
NHL Phoe ix Coyotes to remain in Glendale during the NHL 2011-12 season.
This agree ent allows the team to remain in place for the NHL 2011-12 season; allowing the
NHL and t e city additional time to complete the required agreement with a qualified ownership
group that ill be committed to retaining the team in Glendale.
This reque.t supports Council's goal of one community with quality economic development in
the city's e tertainment district.
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Unexpecte I ly, in May 2009, the former team owner Coyotes Hockey, LLC and its affiliated
entity, Are a Management Group, LLC (collectively referred to as the "Coyotes") filed for
federal ban ruptcy protection. The city's investment was meeting all financial projections and
attracting e onomic development to the area until the Coyotes were thrust into bankruptcy. For
the past o years, under the direction of Council, the city has been actively working with
potential b yers of the Coyotes to structure a deal that would keep the team in Glendale.
On May 21, 2010, the city executed an agreement with the NHL/Coyotes Newco that allowed
Coyotes N;wco to manage and operate the Jobing.com arena for the 2010-11 season. Under that
agreement, the fee to be paid by the city to Coyotes Newco for operating and maintaining the
arena was 'actual cash losses"not to exceed $25 million.
The purpo e for the agreement was to keep the team in Glendale for another year to allow an
opportuni to secure an owner and to allow the NHL to operate the team and arena on our
behalf. Th• NHL kept the Coyotes here for the full season. The NHL has agreed to extend the
agreement to keep the team in Glendale for the 2011-12 season.
On May 11, 2010, Council adopted a resolution granting authority to sign the necessary
agreements and secure the financial mechanisms necessary to satisfy the NHL's requirements to
keep the tern in Glendale for the 2010-11 season. The NHL managed the arena operations and
kept the Co‘otes here.
The Coyot s and Westgate Area provide revenue to the city, creating jobs, supporting existing
businesses and encouraging new development. The city is obligated to manage, operate and
maintain t e arena. Extending the agreement allows the city to maintain the lease as required
and keep t e team in Glendale, which is a critical component to support business and economic
developme t in the Westgate Area. In addition, keeping the team in Glendale will assure the
arena has A 1 calendared events as an anchor tenant, generating revenue that will assist the city
with the on_oing required management costs. The cost is covered by arena operations.
The recom i endation is to waive reading beyond the title and adopt a resolution granting the City
Manager a thority to sign the agreement extending the management agreement between the city
and the N L, and secure the financial mechanisms that are reasonably necessary to satisfy the
NHL's req irements in order for the NHL Phoenix Coyotes to remain in Glendale during the
NHL 2011 12 season.
Resolution No. 4480 New Series was read by number and title only, it being A
RESOLU IION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY, ARIZONA, A RESOLUTION OF THE COUNCIL OF THE CITY OF
GLENDA I E, MARICOPA COUNTY, ARIZONA, GRANTING THE CITY MANAGER
AUTHO' TY TO SIGN THE AGREEMENTS AND SECURE THE FINANCIAL
MECHANI SMS THAT ARE REASONABLY NECESSARY TO SATISFY THE NHL'S
REQUIREMENTS IN ORDER FOR THE NHL PHOENIX COYOTES TO REMAIN IN
GLENDA E DURING THE NHL 2011-12 SEASON.
Mr. Ed Be.sley, City Manager, provided a brief summary on this item.
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Mr. Art L,nch, President and CEO of SRJ Government Consultants, stated this agreement
allows the Coyotes to remain in place for the NHL 2011-12 season; allowing the NHL and the
city additional time to complete the required agreement with a qualified ownership group that
will be co miffed to retaining the team in Glendale. He said it was important to note the
Coyotes ar- an asset of the city and it has been determined the regional economic impact is in
excess of ,.500 million,both in direct and indirect revenue. Also important to note was the
agreement in effect this past year. He stated the NHL carried out the agreement, not only
according io the terms, but also kept the team in Glendale and kept the doors open while working
with new • ners and ownerships. They did not draw on those funds as they had committed until
the comple e actual operating costs were finalized. The NHL continues to honor the terms of the
agreement and continues to manage both the arena and arena operations. The management fee
has paid for the arena operations so the city can benefit from receiving some of the revenues
from the .i ena's operation through ticket, concessions and so forth. In addition, the cost of
operating t e city-owned facility does not change and was a fixed cost.
Mr. Lynch indicated he would like to speak to the value of the $25 million. He stated the city of
Glendale, in December 2003, opened a $220 million facility with a $65 million equity position
that has value and the city should safeguard it. He stated in the last year, the sale tax revenues
generated I om the arena, to public safety, has been in excess of$2 million that would not have
existed oth-rwise. He noted the same thing was true for transportation and improvements that
can be ma'e because of those revenues. He added by extending this agreement, the partnership
would cap the obligations for operating costs at the $25 million, regardless of how much
operating •ost would occur above that amount. He reiterated that those fixed costs would be
kept regar•less if the team left or stayed. The extension of the agreement will allow the
opportuni for continued negotiations to identify and strengthen owner and ownership
structures. He recommends waiving reading beyond the title and adopting a resolution granting
the City Manager authority to sign the agreement extending the management agreement between
the city a d the NHL, and secure the financial mechanisms that are reasonably necessary to
satisfy the NHL's requirements in order for the NHL and the Phoenix Coyotes to remain in
Glendale d ring 2011-12 season.
Mayor Sc ggs asked for any questions or comments from Council.
Councilme ber Lieberman remarked that last year, the city placed $25 million into a reserve
account an• promised that the NHL would never cash that and the city would collect it back.
Those fun•s were taken from an enterprise fund. As a result, those funds were cashed a week
ago yester•ay and now the city was voting on another $20 million. These funds have been
budgeted; owever do not cover the debt service on the arena which was $12.2M a year. He
explained tl e arena had only regained $5.1 million of the $12.2 million in the form of sales tax
and the $2 75 surcharge per ticket. He noted the arena was not self-sustaining even with help
from the HL and the team remaining here. He believes the Walmart at 55th Avenue and
Northern a d the Westgate area were paying for the debt service, not the revenues from the
Coyote sal s. He explained it will cost much less to fund the unfinished courthouse, which was
now not b dgeted until 2017. He added it would also cost approximately $10 million, much less
to build th= west branch library for which Councilmember Clark has been advocating.
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Bill Daly, ational Hockey League, thanked the Mayor and Council for the opportunity to speak
on this ite 1. He stated on behalf of the Commission and the 29 other club owners in the NHL,
he was her, to thank the Mayor, Council, City Manager, staff and the citizens of Glendale, for
their treme dous commitment to the NHL and Coyotes Franchise. He remarked they appreciated
their com itment and were just as committed to the city of Glendale, as the two plus years have
indicated t eir desire to be part of the community for the long term. Over that time, they have
built a real partnership with the city and with the people of Glendale in order to protect their
investment in the arena, as well as produce a first-class result for the Coyotes Hockey Franchise.
He had holed to not have to be here tonight speaking to this resolution, and believed, back in
December, they would not have to be here speaking on this matter tonight. He explained both
parties had worked very diligently in finding a suitable and qualified owner for the franchise to
move forw:rd in Glendale and had been successful in doing that. However, unfortunately, the
opposition of the Goldwater Institute had made it very difficult, if not impossible, to consummate
the transac lion contemplated by the structure that was agreed to and approved by this Council in
December. As a result, they are now looking for more time to evaluate the options, and
understand the landscape, as well as understand some of the opposition that has been raised and
perhaps ch:nge the structure or affirm their legal rights, pertaining to that structure. Mr. Daly
explained t at it may appear as though they were starting at the same place they had a year ago;
however, h- believes that was not correct. He trusts they were in a much better position tonight
than a year ago and much closer to the finish line than they have ever been. He believes they can
get there w ether with Mr. Hulziser or another potential investor. He also believes the team and
arena were also in a much better situation today. Additionally, in the mist of all the turmoil, the
Coyotes pe formed much better this year, made substantial improvements, increased ticket sale
revenues a d increased their attendance record. He believes this franchise has a bright future and
only asks f r the opportunity to make that bright future happen here in Glendale.
Vice Mayo Frate asked for clarification on how the franchise has improved in the last year even
without ha ing the deal take place. Mr. Daly stated season ticket renewals were at 80%, which
was the hi hest this club has ever had since they have been at the arena. He indicated this
showed fa s were excited about the future of this franchise on the ice and are showing their
commitme t. He added that 600 new season tickets have been purchased to date by new fans.
Don Malo ey, a Glendale resident and Coyote's Manager, agreed with Mr. Daly's comments
regarding t e commitments and support Glendale and the League have provided to the Coyotes.
He thanke everyone on behalf of the players, trainers and staff. He stated Arizona was a great
place to ply hockey and they loved it here. He remarked that point-wise, they had their best
games in t e last two years and it was just the beginning. He noted the base team was still young
with a lot f potential, but had the best coach in the hockey league, as seen by the results. He
stated they were determined once they get the ownership settled in Arizona, to bring their minor
league tea I in, to continue to invest in the community. He expects to make great things happen
in this pro -ssional sports town with the great talent they have acquired. This was an exciting
time forth. hockey product and believes hockey works here in Glendale.
Mayor Scr ggs explained the rules for the public hearing.
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Kurt Lars n, a Cholla resident, stated he was a business owner and a long time resident of
Glendale. He also knows much of the Council personally and loves this city. However, he
believes thy were on a slippery slope when it came to this issue and spending tax dollars. He
said the ci wanted to run and make decisions like a large sport venue city at the expense and
misuse of axpayer funds. He explained they had just gotten socialized medicine rammed down
their throa now they were doing it with their tax dollars and the Coyotes. He indicated that if a
business c n't generate a profit on its own, then it deserves the opportunity to succeed or fail on
its own m frits. He explained there cannot be this bottomless pit of dollars that they continue to
underwrite with tax dollars and believes it was bad business. He thanked God for the Goldwater
Institute fo keeping tabs on the legality of this agreement.
John Hisc•tt, a Mesa resident, stated he was a Coyote fan who drove 50 minutes to every single
game for t1 e last three years. He spends his money here in Glendale when otherwise he would
not come t• Glendale but for the Coyotes. He remarked that without the Coyotes, they would
lose his business. He asked the opposition to look to the future and what this team can bring to
the area. e stated that sometimes you need to take two steps back to take one step forward.
Stephen G'lman, a Yucca resident, stated he was not a hockey fan and did not think he had ever
been to a ockey game. However, he was intelligent enough to know the fiscal impacts the city
will experi-nce if the Coyotes leave the area. He noted this was an incredible indirect revenue
generating enterprise for the rest of Glendale. He believes if the Coyotes leave, that the
Westgate .rea has the potential to become a ghost town and those businesses may not survive.
He asked t e Council to look at the totality of them leaving, as well as a worst case scenario, if
this contin es. He discussed how this might even affect core services around the city should the
team leave Glendale. He added it only made good business sense and a smart business decision.
Chris Pard , a Cholla resident, stated he was a resident of Glendale for almost 34 years and was a
strong sup sorter of this decision. He remembers Valley West Mall and how it became a ghost
town beca I se of some of the decisions made. He believes the Mayor and Council have made
good decis ons in the interest to support all family values in Glendale. He stated with decisions
made thro ghout the years, the Council has had the foresight on what it will take to build a great
communi He asked the Council to not listen to outside entities that put pressure on them
because of their philosophical ideas. He remarked the Council has done a great job running the
city and w•uld like them to continue and not lose faith and hold true to their agreement because
it will pay off in the end.
Brian Had ad, Sludge Nation, a morning radio host, provided an example of what happened in
Detroit wh n a team moved, leaving a similar venue. He stated the area never recovered and
now was a rundown decimated area where businesses slowly closed. He stated the $200 million
stadium so d seven years later for $400 thousand. He believes this can happen here. He stated
he can atte t to that fact, since he saw this happen first hand.
Amy Jo G een, a Phoenix resident, stated her support for keeping the team in Glendale. She
does her s opping and chooses to spend her money in Glendale. She encouraged the Council to
hurry alon the ownership deal because this drama was wearing on her; the casual fans were
19
already toa.t. She noted the diehard fans were still in it, but they need to build up their fan base
and this dr.1 a was not helping matters.
Bryan Wil ingham, a Barrel resident, stated he appreciated Mr. Lynch and the NHL
representati e's comments and how refreshing it was to hear the truth. He does not appreciate
the Goldw. er Institute holding the city hostage. The Institute has hurt the city's reputation and
affected th.ir ability to sell bonds in the city. He believes if they don't keep the Coyotes here, it
will affect core services in the future. He also believes millions will be lost in the form of
revenues a d communities will suffer because of that. He strongly supports the arena and
implores th.m not to allow the Goldwater Institute to hold the city hostage any longer.
Ken Jones, an Ocotillo resident, stated he believes Mr. Daly came a long way to be here tonight
to support t e Coyotes. However, he also believes Mr. Daly came here for another 25 million of
their dollar.. He remarked they were here again two years later and another $25 million was
gone. He 'aid that most people would have changed directions at this point. He asked if they
would ever stop this madness and do the right thing. He indicated Coyote fans buy their tickets
at half pric. compared to other cities and this was on the backs of the taxpayers. He understands
this agree ent could be extended for 10 years, which means giving them $25 million for 10
years. He hopes some of the citizens of Glendale finally stand up for what's right for the
taxpayers, of for the free loaders that are getting their tickets at half price.
Barry Broo e, GPEC, stated they were here to support Glendale's efforts and keep the Coyotes
in their co munity. He noted the Council had a very tough decision and believes Mr. Lynch's
report was very compelling and laid out the facts very clearly. He supports Glendale in their
efforts to b•come a great sports entertainment district and believes the Coyotes play a great part
in keeping he area successful. He stated Glendale had a vision for itself and 10 years ago people
did not bel eve the city would be known as a host city for the Super Bowl. He indicated these
achieveme is brought much prestige and importance to the Glendale community. He has seen
the City i anager work through incredibly complicated objectives over the last few years.
Additionally, the management team was first rate and with the support of Council, he was
confident lendale will succeed in these negotiations. He thanked the NHL for their
commitme t as well as the excellent commitment of the team to be in Glendale and he will
continue to offer his support.
Jenifer Wase, a Phoenix resident, stated her support of the Coyotes and the City of Glendale.
She agreed with Councilmember Lieberman's comment that the city should not have had to pay
the $25 m Ilion. However, he can thank the Goldwater Institute for that occurrence. She
explained ad they not butted in where nobody asked them to, this agreement would be complete
and the ci wouldn't have had to pay that fee. She stated last time she looked, the Institute has
not been v•ted into any position. She reiterated the Goldwater Institute cost every taxpayer $25
million ans they will continue to cost the city a lot of money, and youth hockey, if they continue
to interfere with the deal.
John Prato a Yucca resident, stated his support for the Coyotes and Glendale. He believes
Westgate ill suffer if they lose the Coyotes along with businesses and ultimately the
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communi because of lost revenue. He asked the Council to protect Westgate and the city by
fighting fo this cause.
Delbert Ro sh, a Glendale resident, stated his support of the Coyotes and added he has been a
Glendale r:sident for 20 years. He thanked the Mayor and Council for their support of keeping
the team in Glendale. He noted the many services the Coyotes do in the community such as visit
hospitals a d give to charities. As far as he was concerned, they can put the Goldwater Institute
in the pena ty box.
Mayor Scr ggs asked for a 10 minute break at 8:50 p.m. and called the meeting back to order at
9:00 p.m.
Frank Frac), A. T. & T Business Services, stated his company employs many people throughout
the valley including in Glendale. He explained his company was very invested in this
communi and has a significant stake in seeing this community flourish. In order for the valley
to continue to attract and support this type of investment, his company and others have made, the
valley nee s s to be a desired destination for businesses large and small for potential new
residents, isitors and tourists. The Coyotes play a significant role in making the valley such a
desired de tination and for that reason, it was imperative they keep them here. He remarked it
would be . great disappointment to have their partnership with the Coyotes exported to another
city. He i plored the Council to do the right thing for their constituents and stakeholders that
need the •oyotes to stay in Glendale in order for the community to continue to flourish and
thrive.
Heather Scl roeder, Phoenix Coyotes Booster Club, stated her support for the Coyotes and has
come to respect the Council, especially Mayor Scruggs. She indicated this experience has been
unbelievab y horrible and the fan base was feeling it. She noted they had been dragged through
the mud in the media and told how this was a terrible city that can't support hockey and none of
that was tr e. She explained the many rumors going around while very little facts are getting
through. S e was confident the city will find a way to complete this deal and that was why she
had renew:d her season tickets for two years, like many others sitting in this room. She stated
that as pa of the booster club, they have invited fans from other cities that have come to see
games in I lendale. She supports the Council in this initiative of$25 million since they would
still have tI pay the money anyway, so they might as well extend the agreement which will allow
more time o negotiate the deal. However, she encourages the Council to work quickly because
this situation was taking a toll on everyone involved. She once again thanked the Council for
everything hey have done to keep the club in Glendale.
Bea Wyatt, a Cave Creek resident, stated that at most Council meetings she attended, she has not
spoken; ho ever,tonight she wanted to express her thanks to the Council for their efforts to keep
the Coyote., not only in Arizona, but also as the anchor tenant at Jobing.com arena. She noted
the city ha• built a fantastic arena with accommodations for wheelchairs, for which she was very
thankful. '.he considers it amazing that such a beautiful arena still made the extra effort while
other facili ies around the county she visited fell short. She explained the developments in the
area have rally made it a great destination for every age to enjoy. She added the employees at
the arena ere first-rate and believes their jobs were important as well as the many other jobs in
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Westgate .nd surrounding areas that could be affected if this deal does not go through. She
commende• Mayor Scruggs after hearing the tapes from the Goldwater Institute meeting fiasco.
She noted ayor Scruggs handled herself with dignity and class and everyone who voted her in
office shoul d be very proud.
Chris Pete son, a Glendale resident, stated he has been a resident for eight years and loves this
part of the city. He noted he did not support the city spending all this money to keep the
Coyotes. e explained that a team should pay its own way and does not know why the city was
forcing people that do not like hockey to pay for it. He believes this was big government taking
over and s oving stuff down their throats and does not care for it at all. He added he does like
hockey bui believes big companies could fund the team instead of taxpayers' dollars. He hopes
the city fi ds a better way to resolve this issue. He remarked that if this was a successful
business, i can stand on its own and should not need the government.
Ron Sites, ighter Country Partnership at Luke Air Force Base, stated his support of the Coyotes
and the gr:at quality of life it provides the citizens of Glendale, as well as the airmen at the base.
He stated he Coyotes support Luke Air Force Base and in turn, they support the team. He
explained he club had donated thousands of tickets to the base, therefore creating great
experience. for the airmen and their families. He reiterated it was important to maintain the
great quali y of life Westgate has provided and continues to provide for everyone in Arizona. He
was here to support the team in any way he can.
Nick Dran as, Goldwater Institute, stated his specialty was constitutional law and has practiced
law for 15 years as an attorney. He stated that Arizona was wonderful in that its founders saw
the need to ban bailouts of private businesses almost 100 years ago. He read into the record part
of the Ari'ona Constitution, specifically, "that neither the state nor any county, city, town,
municipali or other subdivisions of the state, shall ever give or loan its credit or make any
donation or grant by subsidy or otherwise to any individual association or corporation." He
stated there could not be a more clear statement in any constitution. He noted it was a disgrace
that this as even something an attorney should be arguing and succeeding in prevailing to
enforce. e asked them to consider some practical questions he will be asking.
Mayor Scr ggs explained that the subject matter today was whether to extend the management
agreement for someone to manage an asset of the City of Glendale. She noted that what he was
speaking to was the agreement approved in December with Mr. Hulsizer.
Mr. Drani.s remarked he was speaking to the item at hand. He explained the critical question
was the cl:im that $25 million is needed to cover the management of the arena. He asked if
Council h.d received a breakdown of operating expenses that are budgeted for the coming year
that distinLuished between expenses to maintain the arena verses what is necessary to maintain
the arena only because there is a hockey team there. He indicated, if they had not been provided
that break'own, they, in good faith, cannot determine if the $25 million was a subsidy. He noted
they had a hieved something with this $25 million agreement and have called the NHL's bluff
because th-y need the city more than the city needs them. He explained the NHL has a master
plan to ke:p hockey in the south and southwest and had abandoned their emergency talks to get
22
the deal done quickly when it was clear it could not be done. He suggests Council use this
leverage w sely.
Monique 'eaux, a Tolleson resident, stated her support for hockey. She remarked she had a
great passion for hockey and at times it prevented her from getting her point across. However,
she had to express her view tonight and say that Glendale was growing a grass roots business
through ho key. She believes they were making a difference keeping the Coyotes and could not
afford to lose one job in the city. She added they also could not afford to have their tax base
shorten an more in this bad economy. She explained how the Coyotes have been used by many
and believ;s they have never been given the chance to be successful just in the business of
hockey. SI e added that now they were being used once again politically by the Goldwater
Institute. '.he remarked it was time for the Coyotes to be used for the business of hockey, to
provide a Irofit and be successful in Jobing.com arena and broaden their tax and fan base. She
thanked th; Council for everything they have done to fight not only outside interests, but also
from politi al interests.
Joe Cobb, epresenting the Glendale Libertarian Party, and a Cactus resident, stated he was an
economics l.rofessor who taught in California and retired in Arizona. He said in the height of his
career in the 1990's, he was the chief economist for the United States Senate and prior to that he
was the St.;ff Director for the Congressional Joint Economic Committee. He stated there had
been scien'ific technical studies of the economic asset value of sports stadiums to communities
that invest 'n them and none of them have ever been profitable or repaid their investments. He
believes th city made an economic mistake 15 years ago to build the arena and it was time for
them to cu their losses. He said to continue this was throwing good money after bad. He noted
his friend r. Dranias from the Goldwater Institute has his support and has pointed out this was
unconstitut onal for them to proceed throwing his money into this bad investment. He added he
will be a ph intiff in a lawsuit if they file one. He explained the city has an opportunity to partner
with the Tohono O'odham Nation and have them bailout their losing investment in the hockey
team and t ey should consider it instead of using taxpayer money.
Valerie Roi ler, representing the Glendale Tea Party, and a Cactus resident, agreed that a lot of
misinform.tion has been circulating over the airwaves. However, the fact remains that if this
was a law 1 deal it would not have fallen apart when the Goldwater Institute got involved. She
stated that legally, the Goldwater Institute has the common sense of the people of Arizona and
standing u o for those who don't understand the legalities. She noted she had no problem with
the Coyote. staying in Glendale, however, does not understand why the city would give them
$25 millio dollars of taxpayer money for the Coyotes to rent a building from them.
George Sp ankle, a Cactus resident, stated that to him it seems the city has a $25 million rent-a-
team in the Coyotes. He also remembers Westgate having their best year when the Coyotes were
on strike. e does not believe this will hurt the infrastructure and community services, because
they were lready hurting. He also believes instead of giving the Coyotes the $25 million, they
should inst-ad invest in the courthouse, west library and area pools. He noted that across the
United Stages, Glendale was the laughing joke being called "Gongdale". He does not believe the
city was re;dy for prime time at least not with hockey.
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T. J. Mack.y, a Yucca resident, stated he moved to Glendale in 1993 to an unfinished area of
Glendale. e explained he had done his research before moving to the city and found Glendale
was an exc•ptional city to live in. He also looked at the long term plans of the city, and realized
this was th; place to call home. He noted the city has grown slowly, but responsibly, and added
a number oi features that have made his neighborhood much more livable and benefited him as a
resident anis taxpayer. He said the Westgate area and surrounding facilities have all been a great
benefit to e eryone around the area, as well as to people in the state of Arizona. He believes the
situation h.ppening today with this item has been out of their control and believes the Council
was trying to do their best with a bad situation. He thanked the Council for continuing to do
their best for their residents and the city of Glendale. He indicated this was a short-term setback
and believi s they should not abandon the long-term approach to positive growth in order to
address a s ort-term setback. He stated the economy will recover, and hopefully in a few years,
they would have recovered all the investment they have made in keeping the Coyotes here. He
noted that n everything he has read, the city will lose more money if the Coyotes leave than if
they pay th s money for them to stay.
Arthur Th ston, a Cactus resident, welcomed Mr. Daly from the NHL and thanked him for
coming to p ay. He also thanked the people that do not live in Glendale for coming out to see
what Glen*ale was up to. He stated when he was little, he had two skunks and this deal
reminded im of those two skunks. He noted this deal had changed like those little skunks
changed w en they grew up and were not cute and cuddly anymore. He reiterated how he has
asked the ayor and Mr. Beasley to come talk to him about putting together this deal using all
the connec lions he has. He stated he was so sure he could put a deal together, that he pledged his
home as co lateral if he could not make this deal work. He added the most important negotiation
tool was a person's ability to walk away from the table without a deal if necessary.
Robin Ber 6 hill, an Ocotillo resident, noted she had heard a lot of passion for hockey tonight in
this room f om many people from other cities around the valley. She suggests they help with the
burden to elp pay for the hockey team so not only Glendale was stuck with the bill and debt.
She explai ed that everyone seems to want this, so they should help pay for it. She also
suggested 'ening shares in the team since everyone seemed to be for this team. She stated her
third sugge tion was to partner with the casino. She noted she was not for or against the hockey
team, how ver, was concerned with the proposed deal and owner and the additional amount the
Council w s once again indebting the taxpayers with. She read from the Charter, which
discusses t e possibility of bankruptcy. She asked the Council if they were prepared to be
responsible should this deal prove to be a failure. She remarked if the Council could not answer
this questi n tonight,they should table this item until such time as they can.
Tony Mac arone, a Cactus resident, started his comments by asking the Council where they were
getting the 50 million dollars to keep the hockey team here. He asked the City Manager if there
was anythi g in the Charter which dictates that the public and taxpayers have a vote on whether
they want o provide $50 million to the NHL before the Council makes a decision. He can't
imagine th.t millions of dollars can be spent by only a few people and not go to the voters.
Nicole Go ley, a Peoria resident, stated her support for the Coyotes and added that she has
been a sea.on ticket holder for many years. She noted this uncertainty and lack of a deal has
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taken its toll on her and many fans. She supports Glendale and is looking for a home in the city,
however, i the Coyotes leave, she will look elsewhere and take her tax dollars somewhere else
because sh- will not pay to have an empty arena.
Mayor Scr ggs asked for comments from the Council.
Councilmen ber Alvarez stated she has heard a lot of talk this evening about the money the city
was willin;, to give the NHL. She believes this predicament could all be fixed if the city could
only find . buyer willing to pay the full price for the team instead of having the city subsidize
them. She suggested they go out for bids for the management of the stadium and possibly obtain
a cheaper price. She was happy to hear other mayors in the valley supported the Coyotes;
however, t ose same mayors should maybe split the bill. She wondered why the city hasn't
moved fo and with their plans, if they were correct in their dealings and the Goldwater Institute
was incorr-ct in their assumptions. She explained she was new and had just started in January,
however, s e made a commitment to her district and what she has to say today may not be what
they want io hear. She indicated the city had many needs in the community and had cut services
because o' the economy. In addition, they also had mandatory furloughs for employees and
parks that re not maintained, as well as pools that are not going to be replaced. She stated they
need the m•ney for issues in the community and believes the taxpayers agree. She explained the
southern p,.rt of Glendale was not equal and she had made a promise to her constituents that she
would hel• change that. She added that although some fellow Councilmembers would not agree
with her, s e still believes the south side needs money. She explained she was not against the
Coyotes a d thinks they should stay here; however, this all could be avoided if the people that
want the hockey team would just pay for their team without taxpayer money. The city cannot
use taxpay-r money to subsidize the team and neglect their communities. She remarked that
speaking for herself, the Council needs to admit they lost because there was no profit made from
the Coyot:s, for whatever reason. She stated she could not support using taxpayer dollars for
this issue .nd did not know where the money had been taken from. She questioned using
enterprise nds to provide funding for this issue. She would like an answer from the city
attorney if his was legal and would like it for the record before she gives her vote.
Councilme ber Clark stated she considers Councilmember Alvarez a friend and respects her
comments profoundly on this matter. Although, she agreed with some of it, she also disagreed
with a lot •f it. Nevertheless, that's what's great about democracy. She thanked Mr. Daly and
the rest of he NHL team for their continued confidence in Glendale and the Coyotes. She would
like to res•and to some of the comments made before she goes into her own remarks. She has
heard repe;tedly that this money could go for roads, parks, libraries and streets. She explained
that many ail to understand that those infrastructure improvements come from a different set of
bonding c.pacity based upon the city's property tax payments. She added that the higher the
property t. payments were, the more they can bond for since they have the money to pay them
back. Ho, ever, what has happened is that the assessed valuation has declined greatly. She
explained hat currently, the city does not have the capacity to pay back debt on those kinds of
bonds. Sir asked them to not confuse the issue if they don't use the $25 million for the Coyotes;
they can i stead use it for a park. She explained these were two very different issues. She noted
another im•ortant issue to mention was that what a lot of pro-casino people do not recognize was
all the spil over or indirect revenue from the casino which they support, also applies to Coyotes'
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games and all the people it attracts to the area and Westgate. Additionally, the 41 Coyotes'
nights are hat create the spillover which is helping pay off the original bond of the $12 million
annual deb on the arena and surrounding infrastructure. She noted that approximately $10
million is tenerated annually from the Westgate area and the other $2 million was generated
from Nort ern Crossing. She explained when those 41 nights go away; they will logically
generate le.s revenue at Westgate which translates to the city having to find funding in the
general fu d to cover the debt payment. Councilmember Clark noted it was widely known that
she has not always voted in favor of the Coyotes specifically when she voted against the Hulziser
deal becau•e she did not agree with the termination clause. Therefore, she was not one to always
vote on the side of the Coyotes no matter the cause. She always tries to weigh the pros and cons
on both sid-s. She indicated that the last time around she voted no on this issue but this time she
will be vot ng yes. She believes the Goldwater Institute has successfully poisoned the water for
Hulziser's .ond and she personally thinks that deal will never be made. However, by agreeing to
pay the $2' million for one year and buying breathing space, provides the NHL time to identify a
qualified .uyer and structure a different kind of deal that may or may not meet with the
Goldwater Institute's approval. She does not care what the Goldwater Institute thought at this
point, bec.use she believes they used this Glendale issue strictly for publicity purposes to
generate a d raise their membership and donations. She mentioned the slick flyers they have
been circul.ting portraying Glendale as bad for business. She reiterated the Institute has used
this issue o elevate their organization. She added what they were doing was called self-
aggrandize ent at the expense of Glendale. She was completely against it and it was time
someone c=lied them on it. She explained for all the people who keep mentioning taxpayer
money, thy will be paying one way or another and she would rather invest that payment in
giving the NHL further time to put together a good deal for Glendale and the NHL. She
acknowled;.ed this was a gamble, however, she was gambling with what she believes was in the
best intere•t of Glendale. She recognizes that many did not approve of Executive Sessions and
the inside i formation they received and wishes they could have full disclosure; however, it was
reasonable to not make public some issues since the other side might use it to their advantage.
She stated tonight she will vote yes and support the NHL and asked them to please find that
buyer quic ly and put together a deal, to ease everyone's agony.
Councilme ber Lieberman thanked Logan and his mother and the rest of the people attending
tonight an. appreciates their input. He added that for all those people from other areas of town,
he asked t em to come up with money to help Glendale offset some of their debt in the form of
purchasing tickets. He also thanked the NHL and city staff for a tremendous job in writing the
new contra is and amendments. He disagrees with Councilmember Clark's assessment that city
funds cann•t be used for furloughs and social items. He does not understand how the city was
on a tight .mployee budget and all of a sudden they can pull $25 million from the general fund.
He reiterat;d he was very proud of the people who attended today both for and against this issue.
He suspect. the vote tonight will come down as 4 — 2 and he at this time will be voting against
this deal. e referenced the employee furloughs and how hard it has been for some and in good
conscience cannot vote for this tonight. He noted this year the city will reduce furloughs from
5% to 2'/2° which translates to 6 '/2 days a year with no pay. He noted the many cutbacks the
city was ding because of the budget shortfall, as well as the many openings the city still cannot
fill. Ho ever, they still found money in the budget for this project while not focusing on
communi needs. He reiterated the city had done a great job with the escrow accounts as well
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as the ame dments and contracts. He noted the city was asking NHL to only take$20 million up
front to wo k with and take the last$5 million on the last day of the hockey season.
Vice Mayer Frate thanked everyone here tonight and everyone who spoke and expressed their
opinions both and against this issue. He remarked that many times he has traveled to the capital
and sat in eetings where the chairman refused to listen to speakers and ends the meeting. He
explained hat some people traveled hundreds of miles to express their opinion only to be
silenced. I herefore, they were very fortunate that this Council gives everyone an opportunity to
speak and -nough time to express their views and that's what they do here in Glendale. He
stated if th- Coyotes stay in Glendale, the city must bear a certain cost. He explained that as
long as t is cost remains below the cost of the estimated economic impact, then basic
understand ng dictates that this was in the best interest of the City of Glendale to keep the team.
He noted t at losing a franchise cheapens the value of the city and over time serves as a negative
representat on for others to visit and live. He said they have heard about all the money that could
be lost eith-r way and all the pros and cons. However, his vote was a logical, non biased, absent
of any so i of emotional argument to keep the Coyotes. He believes the upmost thing was to
protect the interest of Glendale and its people and that was how he will vote tonight.
Councilme ber Martinez remarked this has been a long evening and his remarks will be brief.
He thankee Mr. Daly and the rest of the team for sticking with Glendale and firmly believes they
were movi g in the right direction. He mentioned the many letters and emails the Council has
received in regards to the $25 million. He explained it was very important to note that this was
not a givea ay, a subsidy or a boondoggle. He indicated this was an investment in the future of
this city. e noted that even though this continues to be said by many, he needs to repeat it once
more. He ,xplained the $25 million and what is being voted on this evening was a payment for a
service to manage and operate the arena for the 2011/12 hockey season. He noted that
Councilme ber Clark covered the background very well and would like to stress, that if they do
not go through with this, all the talk of lacking money for streets and libraries, would not
compare to what would happen if the Coyotes leave the area, and believes it will be very bad.
He thanke• the many eloquent speakers tonight who laid out what will happen if the city loses
the Coyote.. He also thanked everyone for their continued support.
Councilme ber Knaack noted fellow Councilmembers had done a good job of stating their
position. ',he thanked the NHL for being here and working with the city as well as everyone
involved ith the hockey team. She also thanked the business community speakers that came
out in sup tort of this resolution. She thanked all the Coyote fans that had been so steadfast and
unwaverin: though this whole situation and believes because of them, this will eventually work.
She believe s ticket sales have been very positive and things were moving in the right direction
and people were not giving up on this arena or the Coyotes. She mentioned the many emails and
letters the ouncil has received and for her part, her emails ran 90% in favor of keeping the
Coyotes in Glendale. She explained they could not afford to lose the Coyotes and arena when
the arena as one of the city's largest assets. She referenced the job loss this will create in the
Westgate .nd the surrounding area. She added that in regards to the Goldwater Institute, her
problem w th them was that they were an entity that was not elected like the Council was. City
Council h.s a responsibility to make the best decisions, they feel were right, for the City of
Glendale a d the citizens. She wants to assure everyone that their decisions were not taken
27
lightly and there was a ton of information they go through before they come to meetings and
make their decisions. Currently, the Council needs to look at the long-range vision for the city
and appro e the best possible deal to make this arrangement a success for the citizens and the
City of Gl ndale. She was very glad they had the opportunity to keep the Coyotes here for
another year and provide for a better agreement for the city. She would like to comment on
Councilme ber Alvarez's comments about all the amenities the city needed. She explained that
all their di•tricts have needs not just south of Northern and in fact, the Centerline Project was in
the Ocotill o District and has received a great deal of attention from the city. Therefore, she does
not believ; the money they were spending on the larger picture was hurting any individual
district an. believes they all get the attention they deserve. She reiterated her thanks to all the
people att:nding tonight and staying late. She added she was always available to answer any
questions .r discuss any issue. She will vote to support this issue.
Councilme ber Alvarez stated she misunderstood the $10 million that went to Westgate and
thought it same from Northern Crossing, although now she understands its$2 million. She noted
she was told it was $10 million. She indicated that businesses were suffering right now
especially •owntown businesses. She clarified she mentioned the south side since it was so
visibly in eed and all you had to do was drive the area to know that. She added she was very
committed to this area.
Mayor Sc ggs thanked everyone for their attendance tonight and participation. She explained
that her co lleagues had covered just about everything, however, would like to make a few
comments. She agreed with Councilmember Clark's comments about the bond capacity and the
way these things work. She explained that not paying to manage the arena would not build
additional I acilities. She agreed there has been tremendous amount of misinformation floating
around an. would like to speak to the city's bond debt since it was something brought up quite
regularly.
Mayor Sc ggs stated the city of Glendale has been represented as possibly going bankrupt
which defi itely was not the case. She noted the city's bond rating was the third highest of 21
bond ratin s that were available. She explained what bothered her the most was that the city's
bond debt as equated to their investments in building a sports and entertainment district versus
just having rooftops along the 101. Accordingly, she would like to talk about what comprises the
city's bone debt. She stated that according to the city's budget book from last year, which was
available online and she looked at three categories of bond debt. She stated general obligation
bonds wer- used for the acquisition, improvement and equipment for a variety of projects
relating to I ood control, parks, streets, traffic, parking, water features, multi-purpose recreational
facility, omen space, trails, public safety and so forth. She explained this was a category of
general ob igation bonds starting in 2002 and going through 2009 which totaled $287,255,000.
She stated this is what you expect from your community and that Councilmember Alvarez was
asking for ore of with those types of facilities that build a great quality of life.
Mayor Sc uggs explained the transportation excise tax revenue obligation bonds from 2007
which wer- for design construction and right-of-way acquisitions for roadway widening and
intersectio l improvements, transit stops, bicycle connections, park and ride lots and airport
projects w ich totaled $109,100,000. She noted that street and highway user revenue and
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refunding ponds for 2004 and 2006 brought the total up to $426,765,000. Additionally, water
and sewer evenue obligation projects included the expansion of the existing West Area Water
Reclamati•n Facility, payments for the city's share of upgrades and the expansion of the 91st
Avenue R:gional Waste Water Treatment Plant replacement and rehabilitation of waterlines
throughout the system. She added the water resource master plan and water treatment plan
design and construction of facilities at the Cholla water treatment plant to meet solids handling
regulations was also part of these bonds. She explained that basically, the city was doing
everything they must do in order to deliver water to your homes in lines that were not rusted or
broken and met all government guidelines.
Mayor Scr ggs stated there was quite a bit of money involved with all these processes which
totaled ano her $284,543,766. She noted that all together those investments were done to build
Glendale a. a quality community with the kind of public safety features the residents expect. She
added that building quality communities also consisted of water and sewer facilities, services
required to build amenities the city desires such as parks, recreations, transportation and good
roads. Shy indicated all these figures together totaled $711,308,766 which was very close to
$1 billion d•llars. She explained the debt service was for the services they need, want and require
in the city. She thanked Councilmember Clark for explaining that the city does not incur bond
debt beyo d what their property taxes can pay for and explained that the property taxes have
remained c•nstant or reduced for many years.
Mayor Scr ggs agreed with Councilmember Martinez' comments and believes this was the most
upsetting I isunderstanding people have on the matter. She reiterated this money was a payment
for a servi•e, not a subsidy. She noted people misunderstood and were very upset because they
saw this as a payment to the NHL to keep the hockey team running. She explained that was not
what it wa. at all. She indicated the city has made an investment in building a multipurpose
arena so th- city can have an anchor for an area that would generate revenue versus just having
fields of h•uses which would probably be in foreclosure now. This matter was to keep our
communi arena open for business producing revenue, providing jobs and generating taxes. She
explained t at was all the city was doing. However, because of how this has been characterized
by the me•is and special interest groups, she was not surprised people believe this was some
kind of su•sidy for the NHL.
Mayor Scr ggs made a comparison between the Chase Field arena and the Jobing.com arena.
She explai ed the Jobing.com arena was available 365 days a year for other activities such as
concerts. owever, the Chase Field arena was only open for the Diamondbacks. Consequently,
the fee to anage the Chase Field arena was $12.5 million for only the baseball season versus
$25 millio i for an arena that can be used year round for multiple activities that bring revenue
into the ci . Additionally, for people who believe hockey did not work in the desert, the
Diamondb.cks only fill 50%of the capacity of the arena versus 72%of capacity for the Coyotes.
Mayor Scr ggs clarified there was not an automatic 10 year renewal clause on this agreement.
She noted t was an option written in by staff for technical reasons which staff can explain. She
added the •ity was not paying the NHL to rent the arena; the Coyotes team pays the city rent in
the amoun of $512,000 a year. She indicated revenue figures for just the arena where $3.5
million. She reiterated that if the team leaves they still have the debt, still have the cost of
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maintainin: this asset but will not have the revenue from the team playing there. She discussed
how the a ea will suffer tremendously if the team leaves the area. She noted the money was
budgeted hen Council went through the budget workshops process and was approved by the
whole Co ncil. This is information for the people wanting to know where the money was
coming frem for the arena.
Mayor Scr ggs explained the Coyotes were an enterprise that was growing in success and was
producing en the ice. She stated the past owner was not interested in building a good product on
the ice an. instead was interested in diverting revenues to another business he had. However,
thanks to .11 the fans and supporters, great things are happing. She remarked season ticket sales
renewal fo next year has exceeded 80%. She wished the city could find a way to communicate
facts as w-ll as others communicated misinformation. She also discussed how upsetting the
glossy fly:r from the Goldwater Institute was that had George Will on the cover. The flyer
referenced how terrible the City of Glendale was for taking on the cost of building the University
of Phoeni Stadium and was now in debt. She noted this was all very upsetting and totally
unfounded She explained the findings before them tonight were to make a decision they believe
was the be.t long-term benefit for the city and its citizens. She clarified the decision tonight had
nothing to •o with whether Mr. Hulsizer ever owns this team or not.
Mayor Sc uggs asked Mr. Craig Tindall, City Attorney, to answer Councilmember Alvarez's
inquiry retarding the enterprise funds.
Councilm:mber Alvarez inquired if the city had used enterprise funds and if so, was that
procedure egal. Mr. Tindall replied that last year's enterprise funds were used in the agreement
and it was legal.
It was mo ed by Clark,and seconded by Martinez,to pass,adopt and approve Resolution
No. 4480, ew Series. The motion carried with Lieberman and Alvarez voting Nay.
REQUES FOR FUTURE WORKSHOP AND EXECUTIVE SESSION
It was mo ed by Frate, and seconded by Knaack, to hold a City Council Workshop at 1:30
p.m. in Riom B-3 of the City Council Chambers on Tuesday, May 17, 2011, to be followed
by an Exe utive Session pursuant to A.R.S.38-431.03. The motion carried unanimously.
CITIZEN COMMENTS
Francine 'omesburg, a Barrel resident, stated she could not believe the absolute ignorance, greed
and selfis ; ess of people who are shoving socialistic hockey down their throats. She explained
she had n*thing against the Coyotes or hockey, however, does not approve of this deal. She
added the oyotes had been in Scottsdale, then left and the city was doing just fine. She agrees
there was ; lot of misinformation floating around and thinks the Council was also guilty of that
as well. T ere was also information that has not been provided to the public. She indicated that
many peo s le visit Westgate without going to a hockey game; therefore Westgate will survive.
She does of need a hockey team to visit Westgate. She expressed her views and support for the
30
casino in tie Westgate area. She believes the casino will be a great addition to the Westgate area
and will br ng jobs.
Arthur Th,uston, a Cactus resident, stated he would like to make a correction on an earlier
comment .bout not needing the hockey league. He believes they need everyone's help to
complete tl is deal that will benefit Glendale. He thanked the Council because he completed his
Glendale niversity courses yesterday. He also thanked staff members that came each and every
Monday to contribute to this wonderful experience.
George Sp ankle, a Cactus resident, stated he had a few suggestions to make. He suggests they
double the ticket price until they start making some money. He noted the Coyotes have lost
money eve'y year since they have been here. He noted that possibly they might also try cutting
the ticket .rices in half so they can keep the arena full and then gradually raise the price when
the lines st=rt forming. He also suggested the 11 mayors in the valley help pay the cost to cover
the $25 million. As to the Goldwater Institute, if the city was so sure the Institute was wrong;
they shoulo take legal action against them.
COUNCI I COMMENTS AND SUGGESTIONS
Councilme ber Clark invited everyone to her Spring/Summer District Meeting on May 18th at
6:30 p.m. .t Coyote Ridge Elementary School.
Councilme ber Lieberman also invited everyone to his District Meeting tomorrow evening at
Carol Pec Elementary School starting at 6:30 p.m. He reminded everyone that May was
motorcycl: month and everyone should watch out for motorcycles on the road. He noted that on
Friday and Saturday, he had attended funerals for longtime friends and Glendale residents who
had contri.uted much to the city. They will be greatly missed.
Councilme ber Frate stated he had also attended a memorial service at Luke Air Force for
Lieutenant Colonel Frank Bryant who was killed in Afghanistan. He had lived in Glendale with
his wife an. his two year old son. He was a true American hero and will be missed greatly. He
also reminted everyone once again to watch children around water. He stated there had been
another drowning in Maricopa County which now totaled six. He commented how he too had
received t e glossy little brochure from the Goldwater Institute and wished they had put a little
section on it pleading people to watch children around water instead. He believes more people
would hav read it.
Councilme ber Knaack commented that tomorrow they were having their Salvation Army
Annual A and Luncheon. She would like to recognize and congratulated the winner Ms. Mary
Ann Lavin- who was a "Glendale Treasure" Councilmember Knaack considers Ms. Lavine her
idol and ad ires her for the many years of dedicated community service to the city.
Mayor Scr ggs thanked everyone once again for their attendance this evening especially those
who came om outside of Glendale to voice their support. She stated cities, including Glendale,
always try o entice and bring outside people into the area to have them spend their money here
31
so the city can use that money to pay for services for their residents. She really appreciates their
visits and s atronage, which was what economic development, was all about.
ADJOU' i MENT
There bein_ no further business,the me was adjourned at 11:05 p.m.
amela Hanna-City Clerk
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