On-The-Table: Mesa We Have A Problem

...and it's not the only one. It has been under-the-radar for years, fogged-over by overlooked items in reams of budget documents, a glaring lack of oversight and interest by Mesa residents and taxpayers, and an entrenched 'business-as-usual' bureaucracy operated by elected and appointed officials in City Hall to serve and protect the public trust and interest.

On the surface it came into focus last year in the November General Election when - quite to the surprise of the entire Mesa City Council and other City Hall insiders - Mesa taxpayers rejected a bogus tax-hike proposal called Yes1Mesa by voting NO.
That proposition - a mixed-up mish-mash of three problems desperately seeking solutions in one fell swoop: Downtown Redevelopment, Education and Public Safety - crashed and blew-up big time even though it was pushed hard by a privately-financed $500,000-plus 'political action committee' or PAC  public-relations campaign that turned out to be a major screw-up colliding with the majority public interest.

The role of PACs in local politics, using not only contributions from individuals and special-interest groups, but money poured into politics by public service employee Police/Fire unions to control and influence election outcomes continues to play out in front of the Mesa City Council today for discussion of the city's budget. [see details in this post yesterday ]
After many posts last year on this blogsite and thanks to a recent investigative report ,  three of the contested campaigns for seats for district representatives on the Mesa City Council were up-for-grabs in D1, D2 and D3 where the names of people running for elected office who received Police/Fire PAC contributions were made public by reporters Jessica Boehm and Justin Gardner.
[Blogger's Note: Thanks to public disclosure laws candidates are required to file lists of election campaign contributors - these have been available for months on the Mesa City Clerk's webpage]

Defeated candidates Shelley Allen D2 and Jerry Lewis D3 and winning candidate Mark Freeman D1all received sizeable sums from public service employee PACs.
Elected Mesa Councilmember Mark Freeman, with 31 years employment in the Mesa Fire Department, enjoys a generous city retirement pension/benefits package, also benefiting from an endorsement by Russell Pearce, notorious anti-immigrant AZ State legislator for SB1070 who got shamed out-of-office.

WHAT IS ON THE AGENDA FOR TODAY'S STUDY SESSION
Item 2a has three different parts
1. Proposed Budget Overview for Fiscal Year 2017/18
Presented by the Office of Management and Budget April 3, 2017 24 pages
Currently, a gap exists between the expected annual expenses and the forecasted available resources. Increased expenditure pressure from pension, healthcare, and the minimum wage increase has widened this gap
FY16/17 Updated Forecast shows Projected  - ( 2.8 million)
FY17/18 Updated Forecast shows Estimated - (17.8 million

2. Fiscal Year 2017/18 Summary of Proposed Budget 24 pages

3. FY17/18 Proposed Budget Forecast Summary

The City currently has a gap between the level of on-going revenues and the level of on-going expenses.  The result is reliance on reserve balances and savings experienced during the year.  In FY15/16 expenditure reductions were made to narrow the funding gap.  Recent changes in the City’s contribution to the Public Safety Personnel Retirement System (PSPRS) have widened the funding gap.
About 73% of the General Governmental fund expenses are related to the cost of personnel who provide the services.  Public safety services are the largest component.  The proposed budget uses four methods of cost containment/reduction related to personnel. 
• Cost containment/limiting step pay expenses
• Cost minimization through civilianization of positions
• Protection of core services through repurposing of positions
• Elimination of positions 

People Only Get Motivated When They've Lost

Sounds too familiar huh?

Published on Apr 2, 2017

Views: 29,854

Pie goes off message with a rant at the anti-Brexit movement

Budget Bungles Here In Mesa?

The City currently has a gap between the level of on-going revenues and the level of on-going expenses. The projected widened funding gap for FY17/18 requires City action to ensure sustainability of services.

More details > here 

Time for City Hall to get accountable/open!

 

About 73% of the General Governmental fund expenses are related to the cost of personnel who provide the services. 

Costs like what?

Unfunded liabilities skyrocketing public city employees with very generous pension benefits, benefits and insurance?

Over-estimating revenues?

Under-estimated costs and expenses?

About

“Shitstorm”, a portmanteau of the words “shit” and “storm,” is an Internet slang term referring to a type of public outrage . . .

Origin

The exact origin of the term is unclear. On November 7th, 2002, Urban Dictionary^[1] user D’emon submitted an entry for “shit storm,” describing it as an unpleasant consequence of failure.

 

How it Spread

On November 24th, 2004 “shitstorm” was added to the online dictionary Wiktionary, where it was defined as a type of public backlash. In September 2009, “shitstorm” was added to the Macmillan Dictionary^[8] defined as “a situation in which people are very angry or there are a lot of problems.” On July 28th, 2010, The Onion^[9] published a satirical article that professional basketball players Lebron James, Chris Bosh and Dwayne Wade would be nicknamed “The Three-Headed Shitstorm."

In February 2012, the German website Anglizismus des Jahres^[2] (“Anglicisms of the Year” in English), listed “shitstorm” as 2011’s top English contribution to the German language for filling “a gap in the German vocabulary” pertaining to public outcry on the Internet.

[excerpts from this source: http://knowyourmeme.com/memes/shitstorm ]

6-Page Final Agenda for Regular Mesa City Council Meeting Mon 03 April 2017

5:45 pm
Link > http://mesa.legistar.com/Calendar.aspx
Mayor's Welcome
Roll Call (Members of the Mesa City Council will attend either in person or by telephone conference call)
Invocation by Pastor Joel Scott with Chrio Communities.
Pledge of Allegiance
Awards, Recognitions and Announcements
1 Take action on all consent agenda items.
Items on the Consent Agenda 17-0360
 Approval of minutes of previous meetings as written.*2

3 Take action on the following contracts:
17-0328 Three-Year Term Contract for LED Re-lamping Services for the Transportation Department (Citywide)
This contract will provide services to replace LED traffic signal indicators. LED indicators are regularly replaced as they reach the end of their service life.
The evaluation committee recommends awarding the contract to the highest-scored proposal from Contractors West, Inc. (a Mesa business), at $144,925 annually, based on estimated requirements.
*3-a
17-0348 One-Year Renewal of the Term Contract for Self-Contained Breathing Apparatus (SCBA) Air Equipment and Repair Parts for the Fire and Medical Department (Single Bid) (Citywide)
This contract will provide Scott SCBA air equipment and repair parts as needed for the Fire and Medical Department. The air equipment is used to provide breathable air to firefighters in environments that are immediately dangerous to life or health.
Fire and Medical, and Purchasing recommend authorizing a renewal with Municipal Emergency Services, Inc., at $70,000 annually, based on estimated requirements.
*3-b

Page 2 City of Mesa Printed on 3/30/2017

April 3, 2017City Council Meeting Agenda - Final
17-0354 Three-Year Term Contract for Tire Deflation Devices for the Police Department (Single Bid) (Citywide)
The Police Department uses stop stick devices to impede or stop the movement of mobile vehicles by tire deflation.  The devices are used to terminate a pursuit quickly and safely.  The Police Department has an immediate need to purchase 67 tire deflation devices, which will be distributed to the patrol districts. 
The Police Department and Purchasing recommend awarding the contract to the single, responsive and responsible bidder, Stop Stick, Ltd., at $62,000 annually, based on estimated requirements.
*3-c
17-0349 Purchase of Five Ford Explorers (Four Replacements and One Addition) for the Police Department (Citywide)
This purchase will provide one addition for the Street Crimes Unit and four replacements to support police operations.  The four 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 Berge Ford (a Mesa business), at $152,541.26.  This purchase is funded by the Vehicle Replacement and Capital General Funds.
*3-d
17-0355 Purchase of Replacement and Spare Programmable Logic Controllers and Related Components as requested by the Water Resources Department (Citywide)
This contract will provide Programmable Logic Controllers and related components for replacement and spares at the City’s water and wastewater plants.  The existing equipment is over 15 years old, beyond its useful life and cannot be reconfigured for future system enhancements.
The Water Resources Department and Purchasing recommend awarding the contract to the lowest, responsive and responsible bidder, Summit Electric Supply, not to exceed $75,000, based on estimated requirements.  This purchase is funded by the Utility Replacement Extension and Renewal Fund.
*3-e
Page 3 City of Mesa Printed on 3/30/2017
April 3, 2017City Council Meeting Agenda - Final
17-0325 Fiber Network Expansion - Segment 1 (Guaranteed Maximum Price No. 2): Communication Building (161 East 6th Place) to Fire Station 211 (2130 North Horne) (District 1)
This is the fifth phase of the City’s Fiber Network Expansion Project, which includes the expansion of the existing communication infrastructure to several key public safety facilities and communication sites.  This project will connect Fire Station 211 to the Communications Building by constructing 0.2 miles of fiber optic cable lateral, and connecting to 1.0 mile of Intelligent Transportation Systems existing fiber on McKellips Road from Horne to Center Street.  This project will deliver upgraded connectivity for Fire Station 211 to the City’s computer system via expanded fiber network, similar to other fire stations.
Staff recommends awarding the contract to CS Construction in the amount of $109,560, based upon a guaranteed maximum price of $99,600, plus an additional $9,960 (10%) change order allowance. This allowance will only be utilized for approved change orders. The project is funded by 2013 authorized Public Safety Bonds.
*3-f
17-0341 Eagles Park (Broadway Road and Horne) Phase 1 (District 4)
This contract is for Phase 1 construction, which is focused on the gymnasium building renovation and construction of a 44-space parking lot. The Eagles Park project has been phased to allow the community center to become operational more quickly, while allowing time to refine and develop the programming and cost model for the overall project. The community center features will include retention of the wooden floor gymnasium, retention of the smaller dance room, creation of five multipurpose community rooms, a small grouping of staff offices, and restrooms to serve the building and the park.
Staff recommends awarding the contract for this project to the lowest, responsible bidder, Marsh Development Inc., in the amount of $2,165,614.68, and authorize a change order allowance in the amount of $216,561.47 (10%). These projects are funded by the 2012 authorized Park bonds, Neighborhood Stabilization Program (NSP), and Community Development Block Grant (CDBG) federal Housing Grants.
*3-g
Page 4 City of Mesa Printed on 3/30/2017
April 3, 2017City Council Meeting Agenda - Final
17-0353 Dollar-Limit Increase to the Term Contract for Custodial Services for the Parks, Recreation and Community Facilities Department as requested by Facilities Maintenance (Citywide)
The vendor proposed pricing increases due to the passage of Proposition 206, which affected certain classes of Arizona employers and employees, by gradually increasing the Arizona minimum wage beginning 1/1/2017 and requiring employers to provide sick leave benefits beginning 7/1/2017.
The Parks, Recreation and Community Facilities Department and Purchasing recommend authorizing a dollar-limit increase of $222,300.83 with Varsity Facility Services, increasing the annual contract amount from $1,951,719.32 to $2,174,020.15, through the contract term.
*3-h
4 Take action on the following resolutions:
17-0269 Ordering the sale of $47,180,000 principal amount of City of Mesa General Obligation Bonds, Series 2017. (Citywide) *4-a

17-0270 Ordering the sale of $123,875,000 principal amount of City of Mesa Utility Systems Revenue Bonds, Series 2017. (Citywide) *4-b

5 Introduction of the following ordinance and setting April 17, 2017 as the date of the public hearing on this ordinance:
17-0334 Authorizing a Transaction Privilege and Use Tax Amnesty Program that will be in effect from June 1, 2017 to July 31, 2017. (Citywide)
The program will allow delinquent taxpayers to have certain civil penalties and interest liabilities abated during the scheduled time period, and in doing so, it is anticipated that the City will benefit by receiving revenue, resolving aging tax account receivable balances, and clearing delinquent tax returns.
*5-a
6 Discuss, receive public comment, and take action on the following ordinances:
17-0311 A16-002 (District 5)  Annexing land in the 8800 through 8900 blocks of East Main Street (south side).  Located south of Main Street and west of Ellsworth Road (36.58 +/- ac).  Initiated by the applicant, Randy Carter of Sketch Architecture Company. *6-a
Page 5 City of Mesa Printed on 3/30/2017
April 3, 2017City Council Meeting Agenda - Final
17-0261 Z17-001 (District 5)  The 1600 through 2000 blocks of North Ellsworth Road (east side) and the 9200 block of East McKellips Road (south side).  Located on the east side of Ellsworth Road south of McKellips Road (30.46± acres). 
Rezone from RS-35-PAD to RS-15-PAD PAD; and Site Plan Review.  This request will allow the development of a single residence subdivision. 
Paul R. Dugas, Pinnacle Ridge Holdings, applicant;
Phoenix Land Division, LLC, owner.
Staff Recommendation:  Approval with conditions
P&Z Board Recommendation:  Approval with conditions (Vote: 7-0)
*6-b
Items not on the Consent Agenda
7 Items from citizens present.  (Maximum of three speakers for three minutes per speaker).
8 Adjournment.
The Council may vote to hold an executive session for the purposes of obtaining legal advice from the City Attorney (A.R.S. §38-431.03A(3)) or to discuss and instruct the City Attorney regarding the City’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation. (A.R.S. §38-431.03A(4))

Mesa City Council Study Session Mon 03 April 2017

Any citizen wishing to speak on an agenda item should complete and turn in a blue card to the City Clerk before that item is presented.
BLOGGER'S NOTE: This is A BIG AGENDA for a study session and it is complicated.
If you have any concerns or questions about items on this study session agenda please do not hesitate to speak up and ask questions ...some items are extracted for interest.

Mayor John Giles
Vice Mayor David Luna - District 5
Councilmember Mark Freeman - District 1
Councilmember Jeremy Whittaker - District 2
Councilmember Ryan Winkle - District 3
Councilmember Chris Glover - District 4
Councilmember Kevin Thompson - District 6

Meeting Agenda - Final
5:00 pm Lower Council Chambers

Roll Call (Members of the Mesa City Council will attend either in person or by telephone conference call)

1 Review items on the agenda for the April 3, 2017 regular Council meeting
THIS IS A 6-PAGE AGENDA
You can find it here http://mesa.legistar.com/Calendar.aspx
INCLUDING THE SALE OF OVER $170 MILLION PRINCIPAL AMOUNTS OF 2017 MESA GENERAL OBLIGATION BONDS AND MESA UTILITIES SYSTEMS REVENUE BONDS

2 Presentations/Action Items:

   2a 17-0283

   Hear a presentation and discuss the Fiscal Year 2017/18 Summary of Proposed Budget

   Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10411

   2b 17-0365 Appointment to the Fire Department Pension Board

   Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10493

3 Acknowledge receipt of minutes of various boards and committees.
   3a 17-0383 Library Advisory Board meeting held on January 17, 2017
   Link >  http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10511

   3b 17-0370 Transportation Advisory Board Meeting held on December 20, 2016
   Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10498 

   3c 17-0387 Judicial Advisory Board meeting held on February 6, 2017
   Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10515

   3d 17-0391 Museum and Cultural Advisory Board meeting held on January 26, 2017
   Link > http://mesa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=10519

4 Hear reports on meetings and/or conferences attended

5 Scheduling of meetings and general information

6 Adjournment.

____________________________________________________________

 



ITEM 2a has three different parts
1. Proposed Budget Overview for Fiscal Year 2017/18 Presented by the Office of Management and Budget April 3, 2017 24 pages
Currently, a gap exists between the expected annual expenses and the forecasted available resources. Increased expenditure pressure from pension, healthcare, and the minimum wage increase has widened this gap
FY16/17 Updated Forecast shows Projected  - ( 2.8 million)
FY17/18 Updated Forecast shows Estimated - (17.8 million
2. Fiscal Year 2017/18 Summary of Proposed Budget 24 pages
3. FY17/18 Proposed Budget Forecast Summary



City Council Report A 24-page document
Date: April 3, 2017
To: City Council  Through: Michael Kennington, Chief Financial Officer
From: Candace Cannistraro, Management and Budget Director
Subject: Fiscal Year 2017/18 Summary of Proposed Budget

Overview of Proposed Budget
In February, the Council received an update on the financial status of the City and an overview of the forecast process.  At that time, available resources were projected for FY16/17 and forecasted for FY17/18 and beyond.  The cost of the current level of service was also projected for FY16/17 and forecasted for FY17/18 and beyond. 
The City currently has a gap between the level of on-going revenues and the level of on-going expenses.  The result is reliance on reserve balances and savings experienced during the year.  In FY15/16 expenditure reductions were made to narrow the funding gap.  Recent changes in the City’s contribution to the Public Safety Personnel Retirement System (PSPRS) have widened the funding gap.
Executive staff has met with each department to discuss and discern operational successes and concerns and to determine priorities for the upcoming fiscal year.  The City has set a goal to align on-going expenses with on-going revenues to ensure that quality services and programs can be continued in the future.  The FY16/17 budget was set without specific department reductions.  Departments were asked to operate with targeted savings of 2%.  This allowed for flexibility over the year to take advantage of operational savings opportunities rather than specifying reductions up front.  The projected widened funding gap for FY17/18 requires City action to ensure sustainability of services.
The FY17/18 proposed budget continues the City’s commitment to providing quality services to residents in a fiscally responsible manner.  City senior staff and department staff have formulated a plan that will reduce the FY17/18 projected gap by about 50%. Effort was made to maximize the financial impact while minimizing the service impact. The proposed budget modifies both the projected expenditures and revenues from the original forecast.
FY17/18 Summary of Proposed Budget  Page 2     
The City of Mesa is a service organization and strives for service excellence.  About 73% of the General Governmental fund expenses are related to the cost of personnel who provide the services.  Public safety services are the largest component.  The proposed budget uses four methods of cost containment/reduction related to personnel. 
• Cost containment/limiting step pay expenses • Cost minimization through civilianization of positions • Protection of core services through repurposing of positions • Elimination of positions 
Limiting Step Pay Increases: Pay ranges for positions operate with minimum and maximum amounts.  Movement through the pay range (step pay) is reviewed on an annual basis during an employee’s performance review.  Successful performance is required for an employee to be eligible for increased pay, but the increase is dependent on funding availability.  Each year, as part of the budget process, citywide funding availability is determined.  During the recession, funds were not available and step pay increases were not authorized.  Since FY12/13, the authorized step pay amount has been 5% and was the amount included in the forecast.  The proposed budget includes a step pay amount of 3%.  This budget adjustment is estimated to reduce the expenses in the General Governmental Funds by $2.4M and equates to the fully loaded costs of about 23 full-time positions. 
Cost Minimization: The costs associated with sworn personnel continues to rise each year.  The public safety departments have identified positions currently filled with sworn personnel whose duties could be performed by civilian personnel.  Sixteen positions have been identified: 15 in the Police Department and 1 in the Fire and Medical Department.  Civilian positions will be added and the sworn positions will be removed.  The savings from these position conversions is about $1.0M. 
The sworn employees currently performing these duties will be reassigned to other budgeted positions.  The full absorption into existing vacancies may take up to a year.  One-year temporary funds are included in the FY17/18 budget to cover some of these employees until they can be placed into a different position. 
Repurposing Existing Staff:  As funding continues to be limited, existing resources are evaluated and repurposed occasionally to maintain the City’s core services.  The Fire and Medical Department has identified six sworn personnel that will be repurposed from support duties to first responder duties.  This will allow for better coverage of minimum staffing and decrease the need to call in sworn personnel on overtime.  The support duties currently being performed will be absorbed by other positions or will be done on an asneeded basis. 
Elimination of Positions:  Seventeen positions have been identified for reduction in FY17/18.  One position is part-time so the full-time equivalent (FTE) amount is 16.5.  Four positions (3.5 FTEs) are located in the Information Technology Department, one is in the Business Services Department and 12 are in the Police Department.  Six of the police
FY17/18 Summary of Proposed Budget  Page 3     
positions are sworn personnel and six are civilian.  All the civilian positions in the three departments are vacant.  Four of the sworn positions are filled, however the employees will be reassigned to existing sworn positions when vacancies occur.  

Overview of Proposed Budget
General Government Operating Budget
Restricted Funds Highlights
   Transportation Related Funds.
   Trust Funds Employee Benefit Trust Fund.  From FY13/14 - FY16/17 $58.3 > 77M
City-wide Adjustments Impacting Budget
Capital Improvement Program (CIP) Highlights
Secondary Property Tax
Lifecycle Replacement Program
Department Highlights

Progressive/Conservative Who? What? Red/Blue

shit·storm

ˈSHitˌstôrm/

noun

vulgar slang

noun: shit-storm

a situation marked by violent controversy

Source: The Atlantic March 2017 Issue 


. . .  if liberal advocates are clinging to the hope that federalism will allow them to create progressive havens, they’re overlooking a big problem: Power may be decentralized in the American system, but it devolves to the state, not the city.
Recent events in red states where cities are pockets of liberalism are instructive, and cautionary. Over the past few years, city governments and state legislatures have fought each other in a series of battles involving preemption, the principle that state law trumps local regulation, just as federal law supersedes state law. It hasn’t gone well for the city dwellers.
Alabama and Arizona both passed bills targeting “sanctuary cities”—those that do not cooperate with the enforcement of federal immigration laws.
Even though courts threw out much of that legislation, other states have considered their own versions. Arizona also made sure cities couldn’t ban the gifts in Happy Meals (cities elsewhere had talked about outlawing them, on the theory that they lure kids to McDonald’s), and when some of its cities cracked down on puppy mills, it barred local regulation of pet breeders, too.

Close observers of these clashes expect them to proliferate in the years to come, with similar results. " . . . We are about to see a shit storm of state and federal preemption orders, of a magnitude greater than anything in history,” says Mark Pertschuk of Grassroots Change, ..By the group’s count, at least 36 states introduced laws preempting cities in 2016."
Most of these laws enforce conservative policy preferences.
That’s partly because Republicans enjoy unprecedented control in state capitals—they hold 33 governorships and majorities in 32 state legislatures.
The trend also reflects a broader shift: Americans are in the midst of what’s been called “the Big Sort,” as they flock together with people who share similar socioeconomic profiles and politics. In general, that means rural areas are becoming more conservative, and cities more liberal.
 An important lesson of last year’s presidential election is that American political norms are much weaker than they had appeared, allowing a scandal-plagued, unpopular candidate to triumph—in part because voters outside of cities objected to the pace of cultural change.
Another lesson is that the United States is coming to resemble two separate countries, one rural and one urban.
Only one of them, at present, appears entitled to self-determination.

 

 
 

AFDJ* : Above-Market-Rate Condo Conversion On Main Street/Center

After a backflash by voters in Mesa against the high-cost of city government, both Jeff McVay, the Director of Downtown Transformation, and Bill Jabjiniak, head honcho of the Office for Economic Development, recommended putting City Hall Plaza out for bids to real estate developers to bring in much needed revenues in the faltering FY2017/2018 City Budget.
As Mesa Mayor John Giles likes to say: It's all about location.
Experts in real estate principles have likewise for a long time insisted that markets are guided by the principle of 'highest-and-best use', agreeing that city government office-space can get re-located quickly into other un-used city-owned properties close by and that  this piece of prime city-owned is the most attractive and well-positioned to attract and accelerate private investments in the New Urban Downtown Mesa.
This prime location at the intersection of Main Street and Center Street is in the heart of Mesa's Arts-and-Entertainment district anchored by the International Design award-winning Mesa Arts Center directly across Main Street with a Valley Metro Light Rail platform station just steps away.

* April Fool's Day Joke