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Mesa City Council Study Session 02 March 2017

Note empty seats for public, per usual nearly non-engagement by citizens in their city governance WITH VERY FEW even taking the opportunity to watch and listen Nobody cares ?? 
Published on Mar 2, 2017
Views: 3
Duration: about 30 minutes
[THE ITEMS ON THE AGENDA FOR MONDAY'S REGULAR MEETING are presented after blogger's notes about this study session]
  
D4 Chris Glover opens with a question ... competing products in purchasing of police vehicles. A lot of spending in Fleet Services in the last few months for new Chevy Tahoes 

D6 Kevin Thompson raises a question about Item 4-j, stating he's talked to Parks & Recreation/Commercial Facilities about it -increase in dollar amounts for landscaping contracts

D2 Jeremy Whittaker asks a question ... listen to see what it ia

Business Services awards for merchant services open for discussion to transfer additional user feels to customers instead of merchant fees paid by city ... US Bank/Elavon  is city processor of choice at negotiated rate of 2.37%  for credit card transaction fees
Customer service fees can be imposed to offset merchant costs to city - as long as customers are informed there are opt-outs.
City Manager Chris Brady asks for some history of city usage for credit and electronic transactional costs incurred by city
Chris Glover gets involved

D1 Mark Freeman got to ride in a solid waste trucks - said it was fun

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City Council Final Meeting agenda for Mon 06 March

All citizens are permitted and encouraged to speak on agenda items including and preceding “Items from citizens present.” If you are interested in speaking on such an agenda item, please fill out a blue card in the back of the room and give it to the City Clerk.  When the Council considers the item, you will be called to the podium to provide your comments.

 

4 Take action on the following contracts:

Please note: over $5,000,000 in contracts to be awarded with largest for landscaping services and $1,000,000 for purchase of new vehicles

 

17-0229

One-Year Term Contract for Global Positioning System (GPS) Equipment and Offender Monitoring Services for the Municipal Court (Citywide)
This contract provides a contractor for GPS tracking equipment and monitoring services, including all material, labor and services for the Municipal Court. GPS enabled ankle bracelets and monitoring services are used for pre-trial release in the In-Custody courtroom. 
The Municipal Court and Purchasing recommend authorizing a one-year contract using the U.S. Communities Government Purchasing Alliance cooperative contract with B.I. Incorporated, at $55,000, based on estimated requirements.
*4-a

17-0234

One-Year Renewal Contract for Natural Gas Pipe and Fittings for the Materials and Supply Warehouse (for the Energy Resources Department) (Citywide)
Energy Resources, Gas Utility uses this natural gas pipe and fittings for new construction projects and for maintenance and repair of existing facilities.
The Business Services Department and Purchasing recommend authorizing the renewal contract with Border States Electric Supply; Ferguson Waterworks; and Western Natural Gas Products; cumulatively not to exceed $275,000, based on estimated requirements.
-Limit Increase to the Term Contract for Anodeless Service Risers for the Materials and Supply Warehouse (for the Energy Resources Department) (Citywide)
This contract provides 1” and 2” anodeless service risers and pre-assembled ¾” anodeless service riser kits for new service installations and repair work.  Gas Utility’s usage of these stock items has been more than originally estimated due to continued increases of gas utility customers.
The Business Services Department and Purchasing recommend authorizing a dollar-limit increase of $50,000 with R.W. Lyall & Company, Inc., increasing the contract amount from $115,000 to $165,000 annually, based on estimated requirements.
*4-c

17-0235

One-Year Renewal Contract for Emergency Vehicle Equipment and Installation Services for the Fleet Services Department (Citywide)
This contract provides specialized turnkey emergency vehicle equipment and installation services for the City’s Police Department and general vehicle fleet on an as-needed basis.  The emergency equipment includes:  lights, sirens, push-bars, prisoner cages, consoles, wiring, etc.
The Fleet Services Department and Purchasing recommend authorizing a one-year renewal with Kenco OR LLC, dba LSH Lights, at $1,000,000, based on estimated requirements.
*4-d

17-0236

Purchase of Software for the SQL Server Virtualization Project Requested by the Information Technology Department (Citywide)
The current SQL Server database platform hosts approximately 300 production databases.  Many City websites and applications rely on these databases to store and retrieve information.  This platform has been in place since 2007 with a hardware replacement in 2012.  This software is needed to license a new database system that will support applications used by City staff and citizens.  It will improve security, stability and availability, while also improving ease of management. 
The Information Technology Department and Purchasing recommend authorizing the purchase using the State of Arizona cooperative contract and the lowest quoted vendor, CDWG, at $43,734.46.

Purchase of Computer Backup Disk Storage Appliances for the Information Technology Department (Citywide) 
This purchase will provide backup appliances that will integrate with the City’s data center infrastructure moving to the AT&T facility.  It is part of the IT lifecycle management program, replacing a large legacy storage array into a single unit at one-tenth of the size and power consumption and also upgrading an existing array to add capacity for future growth.  The solution will provide improved performance and lower operating costs in the new data center.
The Information Technology Department and Purchasing recommend authorizing purchase from the lowest, responsive and responsible bidder, Custom Storage Inc., dba CStor, at $157,193.24.  This purchase is funded by the Information Technology Lifecycle Program budget.
*4-f

17-0231

Purchase of 8 Replacement Ford Interceptor SUVs for the Police Department (Citywide) 
The vehicles that are being replaced have met established replacement criteria and will be either traded, auctioned, sold, or deployed to special uses as part of the ongoing City of Mesa vehicle replacement program.
The Fleet Services and Police Departments, and Purchasing recommend authorizing the purchase from the contract with PFVT Motors, Inc., dba Peoria Ford, at $270,359.84.  This purchase is funded by the Vehicle Replacement Fund.
*4-g

17-0233

One-Year Renewal Contract for Digital Bond Printing Services for the Engineering Department (Citywide)
This contract provides a printing company for the production of construction sets of plans and other related construction drawings for the Engineering Department. 
The Engineering Department and Purchasing recommend authorizing the renewal contract with Thomas Reprographics, Inc., at $34,000, based on estimated requirements.

17-0238

Brown Road Water Treatment Plant (BRWTP) Improvements Project (District 5)
The project includes the installation of a 20,000 gallon hydropneumatic tank on the discharge of the Desert Sage High Pressure Pump Station located at BRWTP.  The hydropneumatic tank will provide an air cushion to dissipate high pressure surges in the Desert Sage pressure zone.  Also included in this project is the installation of an 80,000 gallon “feed” tank on the discharge of the Desert Wells High Pressure Pump Station located at BRWTP.  The “feed” tank is designed to mitigate negative (vacuum) pressures that may develop in the Desert Wells pressure zone.
Staff recommends the selection of Garney Companies, Inc., as the Construction Manager at Risk for this project and award a Pre-Construction Services contract in the amount of $54,734. This project is funded by the 2010 authorized Water Bonds.
*4-i

17-0248

One-Year Renewal and Contract Amendments to the Term Contracts for Landscape Maintenance Services for Zones 1, 2, 3 and 4 - Parks, Retention Basins and Sports Fields for the Parks, Recreation and Community Facilities Department (Districts 1, 2, 3, 4 and 6)
The vendor has offered to renew the contract with price increases for each zone due to the passage of Proposition 206, which increased the Arizona's minimum wage.
The Parks, Recreation and Community Facilities Department and Purchasing recommend authorizing the renewal and contract amendments with Mariposa Landscape Arizona, Inc., increasing the contract amount on contract 2014122 from $2,804,677.59 to $3,044,876.24 and on contract 2015309 from $860,457.17 to $914,838.06 annually, based on estimated requirements

 

5 Take action on the following resolution:

7-0279 Approving and authorizing the City Manager to enter into a Development Agreement with Phx-Mesa Gateway Airport 193, LLC relating to the construction of the Ray Road improvements between South Power Road and South Ellsworth Road. (District 6)
*5-a

 

6 Introduction of the following ordinance and setting March 20, 2017 as the date of the public hearing on this ordinance:

17-0262 Z17-002 (District 6) 

The 6400 through 6600 blocks of South Mountain Road (west side) and the 6400 through 6600 blocks of the South Signal Butte Road alignment (east side).  Located west of Mountain Road and north of Pecos Road (50.12± acres). 

Rezone from AG to HI-PAD AF (20± acres); and rezone from GI-CUP AF to HI-PAD-AF (24.3± acres); and rezone HI-AF to HI-PAD AF (5.82± acres); and Site Plan Review.

This request will allow for the expansion of an existing industrial facility.  Reese Anderson, Pew and Lake, applicant;

Signal Butte 20, LLC, owner.
Staff Recommendation:  Approval with conditions

P&Z Board Recommendation:  Approval with conditions (Vote: 7-0)
*6-a

7 Discuss, receive public comment, and take action on the following ordinance: 17-0246 Ordinance adopting modified wastewater terms, rates, fees and charges for City-owned utility services, Schedules SM3.1, 4.1, 7.1, 7.4, 9.1 and 9.2, which expands eligibility criteria. (Citywide) *7-a

8 Take action on the following subdivision plats:

17-0206

“Final Plat Parcel A at PPGN” (District 6) 

The 9500 to the 9600 blocks of East Cadence Parkway.  Located south of Ray Road, between Ellsworth and Crismon Roads.  81 PC single residence lots (14.57± acres). 

PPGN - Ray, LLLP, owner;

Mary F. Kennedy, EPS Group, surveyor. *8-a

 

17-0208 "Map of Dedication - Williams Field Road” (District 6) 

The 10100 - 10800 blocks of East Williams Field Road.  Located west of Signal Butte Road (1.53 ± acres). 

AVH EM, LLC, owner;

Raymond S. Munoz III, EPS Group, surveyor. *8-b

 

17-0209

"Map of Dedication - for Canyon Winds Senior Living” (District 5) 

The 7200 - 7300 blocks of East McDowell Road (north side).  Located east of Power Road on the north side of McDowell Road (50.71 ± acres). 

Canyon Winds Retirement, LLC, owner;

Jay Edward Mihalek, JMA Engineering Corporation, surveyor.

 

2017 East Valley Statespersons’ Luncheon

 
 

2017 East Valley Statespersons’ Luncheon – Sponsored by APS
April 19, 2017  from 11:30am to 1:30pm 
ASU Memorial Union Ventana Ballroom

The event will feature a conversation with Coclick right herengressman Andy Biggs (AZ-5) and Congresswoman Kyrsten Sinema (AZ-9) moderated by Jeff Guldner of APS.


More information + Sign-Up >> click here 

Dedicated to the PHX East Valley

The East Valley Partnership is a coalition of civic, business, educational and political leaders from Apache Junction, Chandler, Florence, Fountain Hills, Gila River Indian Community, Gilbert, Mesa, Queen Creek, Salt River Pima- Maricopa Indian Community, Tempe and Pinal County dedicated to the economic development and promotion of the East Valley of Greater Phoenix, Arizona. We actively advocate in areas such as economic development, education, transportation and infrastructure, arts, behavioral health, and other important areas.

 

BOARD OF DIRECTORS

Robin Arredondo-Savage, Vice Mayor – City of Tempe

Rachel Aja – Cox Communication

Heather Austin – The Ferraro Group

Bryan Barney – Huber Barney PLLC

Lee Benson – Able Engineering

Mike Bielecki – Lewis Roca Rothgerber Christie LLP

Gordon Bluth –  Blucor Contracting

Tim Bricker – Dignity Health

Dee Burton  – Alliance Bank of Arizona

Brian Campbell –  Campbell Law Group

Carlos Contreras – Intel Corporation

Chuck Coughlin –  HighGround

Michael Cowan – Mesa Public Schools

Bill Crawford – Chandler- Gilbert Community College

Angela Creedon –  Arizona State University

Webb Crockett – Fennemore Craig, PC

Rhonda Curtis –  Wells Fargo Bank

Sally Downey – East Valley Institute of Technology

Mark Dreher – Wallace Plese + Dreher LLP

Cynthia Dunham – The Leadership Centre

William Garfield  – Arizona Water Company

Scott Gibson – Davis Miles McGuire Gardner PLLC

John Giles, Mayor –  City of Mesa

Caryn Gose –  Salt River Project

Jeff Guldner –  Arizona Public Service

Alan Heywood – Americopy

Sandra Hudson – TrustBank

Michael Hughes –  A New Leaf

Anthony Jeffers – Hensel Phelps

Doug Johnson -BBVA Compass Bank

Joel Johnson – First Bank of Arizona

Thomas Kaupie – National Bank of Arizona

Heidi Kimball– ASU Research Park

Milo LeBaron – LeBaron & Carroll Insurance

Matt Ligouri – Southwest Gas

Bridget Lovett  –  Apollo Education Group

• Steve Martin – Childsplay
• Kevin Martinelli – Arizona Republic
• Dea McDonald – Eastmark/DMB
• Jeff Mirasola  –  CenturyLink
• Stephanie Navarro – Salt River Project
• Chris Nickle –  McCarthy Building Companies
• Kevin Olson – Steptoe & Johnson
• Brian O’Neill –  PHX Mesa Gateway
• Bryant Powell – City of Apache Junction
• Tom Rankin, Mayor –  Town of Florence
•  Jordan Ray, Vice Mayor – Town of Gilbert
• Marianne Rexer – Wilkes University
• Brain Ruddle –  Commercial Properties
• Jim Schmidt – Schmidt Westergard
• Holly Schor – Goodwill of Central Arizona
• Marc Schultz – Snell & Wilmer
• Jerry Schwallier – Arizona Bank & Trust
• Jack Sellers – Arizona State Transportation Board
• Jesse Shetlar – Mutual of Omaha
• Richard Silverman – Jennings Strouss
• Jeff Singleton – Ernst & Young
• Doug Small – Northern Arizona University
• Gerrit Steenblik –  Polsinelli PC
• John Stolting – The Boeing Company
• Steve Strickbine –  Times Media Group
• Peter Sturgeon – Sorenson Capital
• Linda Thompson – Helios Education Foundation
• Terry Turk- Farnsworth Companies
• Steve Utter – Empire Southwest
• Deanna Villanueva- Saucedo – Maricopa Community College District
• O.T. ” Ted” Wendel – A.T. Still University
• Todd Werner – Banner Health
• Steve West –  Udall Shumway
• Julia Wheatley – Town of Queen Creek
• Lois Yates – Global Logistics Development Partners

EX-OFFICIO DIRECTORS

Supervisor Denny Barney – Maricopa County Board of Supervisors

Mayor Gail Barney – Town of Queen Creek

Supervisor Steve Chucri – Maricopa County Board of Supervisors

Councilmember Sal DiCiccio – City of Phoenix

Mayor John Giles – City of Mesa

Mayor John Insalaco – City of Apache Junction

Mayor Mark Mitchell – City of Tempe

Martin Sepulveda – Sepulveda Group, Inc.

Mayor Jay Tibshraeny – City of Chandler

The Problem That Links Business, Finance and Politics

Not an easy nut to crack for sure.
An article in The Economist Buttonwood's Notebook back on 13 February 2017 might give us some leverage to open the discussion highlighted by Buttonwood.
The problem is as old as mankind.
The Roman author Juvenal encapsulated it into a phrase “Quis custodiet ipsos custodes” or “Who guards the guards themselves?”

It was neatly illustrated in the classic BBC series “I, Claudius”. For some unexplained reason, your MesaZona blogger always subtitled the series in his own mind Roman Family Values with all the intrigue, treachery, murders and back-stabbing gone mad for centuries.
The infirm Claudius wants the return of the Republic. But the Praetorian guard, set up by his relatives, needed an Emperor to ensure their special status. So on the murder of Caligula, they drag Claudius from his hiding place behind a curtain, and make him Emperor.

Starting off with politics: Throughout history, dictators have faced this problem. They can surround themselves with men with swords or guns. But it only takes one guard with a sword or gun to turn into an assassin or to seize power for himself. The Shah of Iran had a huge army in 1979 but it did him no good; the soldiers had more sympathy with the revolutionaries than with the Shah himself. 

 

In business and finance, this is known as the “principal-agent” problem.

Shareholders employ managers to run a company; investors use fund managers to look after their savings. That makes sense. It allows us to take advantage of the expertise of others, and of economies of scale in fund management (it costs little more to look after $10m than $1m). But it is extremely hard to align the interests of principals and agents exactly. 

Before the 1980s, the worry was that business managers would worry more about expanding the company (and increasing their power, pay and perks) than in shareholder returns. So share options were dreamed up to align the interests of the two. However, share options are a one-way bet; very valuable if they get exercised but costless to the executive if they do not. (And the exercise prices are often rewritten in the latter case.) >>

The overall effect has been to ratchet up the pay of executives, ultimately at the expense of shareholders.
As the Financial Times reports, some efforts are being made to rein this back in the most egregious cases, but progress is slow; the cost of executive pay is spread very widely while the benefits go to a few. 

• In investment, fund managers are paid through ad valorem fees, a percentage of the funds invested. In a recent article, Paul Lewis, the BBC presenter, jokes that ad valorem is Latin for rip-off. Again the ad valorem approach sounds like it ought to work; if the asset value goes up, then so does the pay of the fund manager and the wealth of the client. . . But if the market stays flat, the fund manager still earns money while the client is worse off (to the extent of the fee). And if the market goes up, the fund manager’s fee will rise, even if he or she underperforms the index. Performance fees do exist in the hedge fund industry but those are on top of annual management fees. If managers were really confident of their skills, they would surely take all their earnings in performance fees; say 50% of everything above the benchmark but not a penny for anything less.

Investors are catching on to this problem; around half of all fund flows last year went to Vanguard, the low-cost index-tracker . . . >> But a lot of money is being earned by mediocre fund managers. As with executives, the problem over the last 30 years is that the agents are getting faster much more quickly than the principals. 

• A further problem with modern finance and business is that affairs are extremely complex; so there is an “information asymmetry” between the clients and the agent.
• LET'S CALL IT EXPLOITING INFORMATION: The latter understands far more and thus knows which loopholes to exploit. Incentivise executives with an earnings per share target, for example, and it is relatively easy to run the business towards meeting that target rather than focus on things that create long-term value such as capex.
• That suggests a broader requirement such as the fiduciary principle, something which the Trump administration wants to water down (read the piece by Jack Bogle of Vanguard on this, headlined “Putting Clients Second”).

The problem that links business, finance and politics here is trust.
Trust is easier to deal with in small communities where one can deal with each other face to face; this was even true of the Athenian democracy. Once our relationships with our agents are more remote, and our transactions more complex, we have to rely on incentive schemes and these are ripe for exploitation.
The trust problem is particularly difficult in politics where a large proportion of the public no longer trusts mainstream leaders. In part, this is because some have shown themselves untrustworthy. But it is also because the incentive structure of the system (particularly in America, where funding is such an issue) teaches politicians to ally themselves with the powerful.
And it is also because the problems they face are not amenable to easy solutions; as I’ve remarked before,

• important issues are global and complex but politicians get elected by focusing on simple and local answers.
• When those answers fail, cynicism increases.

The irony is that, as Edward Luce writes, that Americans have elected a leader who is replete with conflicts of interest at every turn. When his promises disappoint, cynicism will only climb a further notch.
Indeed, the issue of checks and balances seems all the more important today; who guards a country against its elected leaders?

spark! Mesa's Festival of Creativity

Come Celebrate Creative Place Making
An immersive environment to celebrate the work of amazing, creative people and to discover the creative thinker inside every visitor! 
The event will take place at the Mesa Arts Center Friday, March 17th and Saturday, March 18th from 12N - 10P
 
Each day and every night there will be a variety of Musical Performances featuring popular local and regional artists in Country, Rock, Latin, Blues and Jazz. The festival will offer food, fun and creative activities for the whole family! 
With the exception of ticketed performances in the MAC's theaters all festival activities and outdoor performances are free of charge.
More information? Please go to http://mesaartscenter.com/spark

Apple Stock Grows by 27.15% NICE BITE, Huh?

Apple (AAPL) 2017 Shareholders Meet: Important Takeaways

by Zacks Equity Research   Published on March 01, 2017

At the annual shareholders' meet held at Cupertino yesterday, Apple Inc. (AAPL - Free Report) CEO Tim Cook, reportedly,  said that the company has spent over $50 billion with suppliers toward manufacturing in the U.S.

Source: Zack's Stock News

Per media reports, Cook further added that Apple has created around 2 million jobs in the country including manufacturing jobs. It has collaborated with 3M, a Minnesota-based manufacturer for supplying adhesives and has Corning Incorporated (GLW - Free Report) to supply glass screen for iPhones.
Cook was quoted by media reports saying "We're always looking for more ways to help our country. We know that Apple can only exist in the U.S.” Cook said that nearly 70% its workforce is in the U.S.In fact, to alleviate Apple’s concern of increased prices of finished products, Trump told Cook that he will provide tech companies huge tax cuts. Cook added that the lowering of tax will aid repatriation of cash, which in turn will be used to boost capital allocation plans.

In January this year, it was reported that one of Apple’s biggest suppliers, Foxconn Technology Group is thinking of setting up a manufacturing plant in the United States. Though the exact details aren’t available, Foxconn is interested in investing over $7 billion in setting up such facilities in the U.S. Prior to that, media reports claimed that Apple has requested the government to allow it to use its Mesa, AZ facility to conduct "high-tech manufacturing".
Apart from manufacturing details, Cook, reportedly, assured investors that the company is working on developing products that will open new sources of revenues. No details were provided as to what the company is working on.

However, it’s widely known that Apple is channeling efforts and resources toward its automotive and AR ambitions.

Apple Inc. Price

Zacks Rank & Share Price Movement

At present, Apple carries a Zacks Rank #3 (Hold).
Given the phenomenal performance of its iPhone 7 and 7 Plus, Apple’s shares have outperformed the broader market over the last six months.

Over the past one year, shares of Apple have registered growth of 27.15%, compared with the Zacks Computer Mini industry’s gain of 26.48%

Best States 2017 > Arizona Overall Rank = #34 Out of 50

Best States 2017: How They Were Ranked

Here's a look at the data behind our rankings.

By Lindsey Cook | Data Editor 28 Feb 2017

Viewed as a whole, it's a news analysis and rankings platform designed to inform engaged citizens, business leaders and policymakers alike about what's working and what needs improvement across the country."
 

Methodology

The overall Best State ranking from U.S. News & World Report shows how each of the 50 U.S. states ranks in 68 metrics across seven categories.
The data behind the rankings were based on McKinsey & Company’s Leading States Index.
Source: U.S. News World Report

Across the board, transparency and some light on these issues is very valuable.
In calculating the rankings, each of the seven categories were assigned weightings based on a national survey that asked people to prioritize each subject in their state:

• Health Care: 18 percent
• Education: 16 percent
• Infrastructure: 14 percent
• Crime & Corrections: 14 percent
• Opportunity: 14 percent
• Economy: 13 percent
• Government: 10 percent

Note: Weights don’t add to 100 due to rounding.

Data/Infographic link for Arizona can be accessed here

 

Overall Rank Out of 50	#34

 

 

 

 

 

 

 

An article  from CNBC had this to say:

As many balances of power shift from Washington, D.C., to the states, it's essential to understand which states are doing best at what matters most to Americans.
The central American contract is a constitutional pact the states made with the federal government — starting with the original colonies and continuing with each admission to the union through Hawaii: "Powers not delegated to the United States by the Constitution... are reserved to the States respectively, or to the people."
Now, in the first objective, authoritative measure taken of all the states across a comprehensive range of critical issues, U.S. News and World Report is telling a revealing new story about which ones are performing best for their citizens.

In a union such as this, each state has something to learn from the others. Some have better health care, some better education, some more economic opportunity for their citizenry. Drawing any comparisons should be more than a matter of bragging rights. It requires clear-eyed measures to make real judgments.
That's what Best States is all about. It's a platform for not only rankings, but also ongoing fresh reporting about news, trends and developments state by state.

"In each of the seven categories, we identified multiple metrics, all of which are well known and the best metrics in each of the categories that we're talking about,'' says Andre Dua, a senior partner at McKinsey.

"We feel very confident about both the granularity of the metrics and the quality of the metrics. And the thing that gives us more confidence is, we are completely transparent about what are the metrics and where the metrics come from."

"We think it's incredibly important in thinking about state performance, state policy making, agenda setting, to start by grounding yourself in the view of citizens," Dua says, speaking to the value of the ultimate comparisons that are made state by state. "Without data on performance and without data on citizen satisfaction, any other judgment you make on priorities and where to focus is simply guesswork."

 

36% college educated

Overall Rank Out of 50	#34
Health Care	#28
Education	#43
Crime & Corrections	#39
Infrastructure	#12
Opportunity	#33
Economy	#19
Government	#26