Mesa City Council Study Session - 4/3/2017

The meeting is running way over the allotted 45 minutes allotted time in the agenda details.
Item 2a takes an extended time.
Giles says is a very short agenda ?????????????
THIS IS NOT A STRATEGY Ever heard this word before> :"Civilianization" in Police Department as a strategy to reduce payroll expenses is a big topic in discussion with Mayor John Giles and City Manager Chris Brady unusually actively in defensive discussions.
Candace Cannistraro in the hot seat making the presentation and fielding questions.
Re: financial stability
City going after old and uncollected court fees and penalties
$8.6 Million is beginning funding gap going into FY17/18 with a lot of issues getting kicked down-the-road . . . based on third-party actuarial studies received in February
PSRS liabilities are source of many questions that Chris Brady chimes into to try to give some semblance of believability  
City admits it is oftentimes reactive to budget issues
Future meeting dates and times to be announced on Thursday by Chris Brady

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City Council Meeting - 4/3/2017

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Red shirts in packed room - an unusual event for Mesa City Council meetings, acknowledged by the Mayor with receiving 15 'blue comment cards' on agenda items when only 3 public comments limited to three minutes is usually permitted.... Giles says he'll 'bend the rules' to allow five

$100 Million Bonds = Game-Changer for Local Initiatives Support Corp

04 April 2017 - Press Releases

 

LISC issues $100M in GO bonds to fuel economic opportunity in low-income communities

S&P assigns ‘AA’ rating to inaugural offering from seasoned community development org

 

Contact:

Michael Hearne, LISC Chief Financial Officer
212.455.9871 ormhearne@lisc.org

Colleen Mulcahy
312.942.8244 orc.mulcahy@sbcglobal.net

 

NEW YORK (April 4, 2017) In a first-ever move of its kind, the Local Initiatives Support Corporation (LISC) is issuing $100 million in general obligation bonds to help accelerate its work around economic opportunity and drive investment capital into distressed urban and rural communities across the country.

Standard & Poor’s assigned a ‘AA’ rating to the bond issue, which includes term bonds of 10 and 20 years.

The rating mirrors S&P’s issuer credit rating, assigned to LISC in September 2016, which highlighted the organization’s diverse and growing asset base, minimal loss exposure, and strong history of loan performance.

“Impact investors are looking for proven ways to help revitalize communities and restore economic mobility for people fighting to compete in the current economy,” said Maurice Jones, LISC president and CEO. “LISC has been leading that work for decades, building a track record that improves the quality of life for people all across the country.”

LISC is a national nonprofit and one of the nation’s largest community development intermediaries, having invested more than $17 billion to build up the economic infrastructure of disinvested places. Its offering represents the first time a Community Development Financial Institution (CDFI)—a designation for specialized lenders focused on the needs of low-income people and places—has tapped the bond market for growth capital. The LISC bonds have no geographic or programmatic restrictions, making them a flexible opportunity for a broad range of investors. Morgan Stanley is serving as the underwriter for LISC’s planned financing.

“It has never been more important for us to invest in local economies so families can raise their standards of living,” stressed Jones. “This new capital will not only help us fuel businesses, jobs and large-scale redevelopment efforts, but also help address the persistent social and economic challenges preventing people from maximizing economic opportunities.”

LISC has posted record results in the last two years, including investing more than $1.3 billion in grants, loans and equity in 2016 to support economic development, affordable housing, health care, community safety, education, family financial stability and employment.

“From a pragmatic economic viewpoint, this work could not be more critical,” said Robert Rubin, former Treasury Secretary and LISC’s long-time chairman. “The lack of economic mobility we see in both large cities and small towns is having a profound effect on the country. LISC addresses these challenges directly, while also acting as an incubator for innovation in community development, testing promising ideas and helping bring solutions to scale.”

LISC is headquartered in New York but is locally focused, operating through 31 urban programs and a rural development effort that touches more than 2,000 counties. 

 

About LISC

LISC equips struggling communities with the capital, program strategy and know-how to become places where people can thrive. It combines corporate, government and philanthropic resources. Since 1980, LISC has invested $17.3 billion to build or rehab 366,000 affordable homes and apartments and develop 61 million square feet of retail, community and educational space.

Mesa City Council Study Session Thu 06 April 2017

Meeting Agenda - Final
Mesa Council Chambers 57 East First Street

07:30 am Lower Level Council Chambers 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.
Capital Improvement Program FY2018/22
1 Parks/Recreation/Community Facilities
2 Public Safety
3 Transportation
+ Executive Session [Closed to Public]

Source: Research Center for Council, Board and Committee Meetings
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))

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


Roll Call (Members of the Mesa City Council will attend either in person or by telephone conference call)
1 Presentations/Action Items:

17-0282
Hear a presentation and discuss the FY 2018-2022 Capital Improvement Program with a focus on:
1. Parks, Recreation and Community Facilities
2. Public Safety
3. Transportation
*1-a
17-0331 Hear a presentation, discuss and provide direction on the following department budget:
1. Parks, Recreation and Community Facilities
*1-b
2 17-0436 Information pertaining to the current Job Order Contracting projects

3 Acknowledge receipt of minutes of various boards and committees.
17-0434 Audit, Finance and Enterprise Committee meeting held on March 6, 2017.

THIS IS AN 82-PAGE REPORT > Council, Board and Committee Research Center
3-a
AUDIT, FINANCE & ENTERPRISE COMMITTEE  March 6, 2017  
The Audit, Finance & Enterprise Committee of the City of Mesa met in the lower level meeting room of the Council Chambers, 57 East 1st Street, on March 6, 2017, at 2:33 p.m.  
COMMITTEE ABSENT  Christopher Brady, Ex Officio
COMMITTEE PRESENT  Mark Freeman, Christopher Glover, David Luna  
STAFF PRESENT  Jim Smith, DeeAnn Mickelson, Michael Kennington

4 Hear reports on meetings and/or conferences attended.

5 Scheduling of meetings and general information.

6 Convene an Executive Session.
ES-010-17
Discussion or consultation for legal advice with the City Attorney. (A.R.S. §38-431.03A (3)) Discussion or consultation with the City Attorney in order to consider the City’s position 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))
1. Ellertson v. City of Mesa, et al.
   (United States District Court,    
   Case No. CV-15-00765-PHX-GMS)
6-a
7 Adjournment.

Pssst! ..... Trying to get a grip on PSRS . so confused

Supreme Court ruling to cost public-safety pension trust $220M in refunds to members

Craig Harris , The Republic | azcentral.com 3:37 p.m. MT Nov. 14, 2016

The divided court upheld a Maricopa County Superior Court ruling that found a 2011 pension-reform law unconstitutional
Read entire article Arizona Investigations

A state Supreme Court ruling will require refunds to elected officials and public-safety officers who since 2011 were required to pay more for their pensions, with local governments likely to cover the projected $220 million cost to an already fragile public-pension trust fund.The divided court upheld a Maricopa County Superior Court ruling that found a 2011 pension-reform law was unconstitutional. Specifically, it overturned provisions in the law that increased employee contributions to their own retirement and curtailed certain benefit increases. The law was intended to improve the financial health of the Public Safety Personnel Retirement System trust fund.
The decision means hundreds of PSPRS members whose employee contributions were increased will receive refunds, while some retirees will receive retroactive benefit increases . . .
The court ruling is likely to force local and state governments, which already pay the majority of retirement contributions, to increase their payments to the retirement system for their employees,
Despite the 2011 reform law, some cities and towns held back on hiring additional police officers and firefighters in the past few years because of the enormous cost of their per-employee contributions to the retirement system.
While the case focused on the elected officials' retirement plan, the ruling also is expected to affect those in retirement plans for public-safety officers and correctional officers.  Elected officials, public-safety officers and correctional officers have separate plans, but all are under the umbrella of the PSPRS.
PSPRS Administrator Smout said while the ruling is a setback, the system is poised for recovery due to another pension reform measure voters approved earlier this year. That plan is projected to save $475 million in long-term costs.

Firefighters and police officers will have their contributions rolled back to 7.65 percent of their salaries, down from 11.65 percent. Employers, on average, paid in 32.54 percent as June 30, 2015. Some employers, however, paid more than 50 percent, with Bisbee paying nearly 88 percent.


Arizona Enacts Groundbreaking Public Safety Pension Reform

Collaborative process yielded consensus on wide-ranging reforms

Leonard Gilroy, Pete Constant and Anthony Randazzo
February 16, 2016
Link to entire report: here

This afternoon, Arizona Gov. Doug Ducey signed into law comprehensive pension reform legislation that will put Arizona’s beleaguered public safety pension system on a path to financial solvency. The Arizona Public Safety Personnel Retirement System (PSPRS)—which covers all law enforcement personnel and firefighters statewide—has accumulated $6.6 billion in unfunded liabilities over the past dozen years and stands at only 48% funded today.

The Need for Reform

The deterioration of PSPRS’s financial health over the past 12 years has led to skyrocketing annual pension costs for the local government and state agency employers participating in PSPRS and, by extension, taxpayers. Specifically, the growing costs for many local governments are attributable to rising payments on the large unfunded liabilities for public safety pension benefits. The growth of these pension debt payments has threatened the continued delivery of public services and budgets in those jurisdictions, since the growing costs of pensions effectively crowd out other areas of the budget. Further, the courts have struck down previous legislative reforms to PSPRS enacted in recent years, and other reforms remain under litigation, creating the need for a new solution.
First, for current employees and retirees, the reform will replace the uncertain, inequitable, unsustainable PBI with a traditional, pre-funded cost of living adjustment (COLA) that provides certainty and equity in retirement. This will serve the public interest by fixing the broken PBI mechanism that has been a major factor causing increased unfunded liabilities:

• The new COLA will be based on the changes in the consumer price index for the Phoenix region, with a cap of 2% maximum.
• The COLA will be equitable because the percentage will be applied to each PSPRS retiree’s actual benefit level (as opposed to a level dollar amount granted under the current PBI, regardless of the individual retiree’s benefit level).
• Further, the new COLA will be pre-funded and actuarially accounted for in advance as part of normal cost determination, which has historically not been the case with the current PBI.

Replacing the PBI with a traditional COLA for current personnel and retirees will require a constitutional amendment that will require voter approval at the ballot box in an election this May.
Second, the reform creates an entirely new retirement plan design for all new employees hired on or after July 1, 2017 that will:

• For the first time, allow public safety employees the choice of entering a full defined contribution plan or a defined benefit hybrid plan.
• Reduce the pensionable pay cap from $265,000 per year to $110,000 per year, significantly limiting pension spiking.
• Change the pension benefit multiplier from a flat 2.5% to a graded multiplier that ranges from 1.5% to 2.5% depending on years of service.
• Increase the retirement benefit eligibility age from 52.5 years to 55 years old.
• Implement the same CPI, with a cap of 2%.
• Restrict or eliminate cost of living adjustments when the plan falls below 90% funded.
• Require employees to pay 50% of all retirement costs, including normal costs, administrative costs, and any potential future unfunded liabilities if the plan’s experience does not meet actuarial assumptions.

 

 

Big Prop. 124 win to change public-safety pensions

Craig Harris , The Republic | azcentral.com Published 8:48 p.m. MT May 17, 2016 | Updated 6:25 a.m. MT May 18, 2016

Prop. 124 wins big, following support from firefighters, police officers and lawmakers. It will lower increases to retirement benefits, but is expected to improve ailing retirement trust.
Starting Jan. 1, the measure will change the way permanent pension-benefit increases are paid to retirees. Supporters say Prop. 124 over the next 30 years will save $1.5 billion for the retirement trust for first responders. However, an Arizona Supreme Court ruling could throw a wrench in Tuesday's electoral decision.

Prop. 124 will link retirees' pension cost-of-living adjustments to the regional Consumer Price Index, with an annual cap of 2 percent. An annual 4 percent compounded increase has been paid out to retirees for the past two decades, significantly cutting into the amount of money remaining to pay future retirement benefits.

Although the measure will reduce pension benefits, first responders urged voters to back the plan in order to provide sustainability to a trust that has about half of the money needed to fund current and future pensions

The State of Arizona has 2 retirement systems, the Arizona State Retirement System and the Public Safety Personnel Retirement System. These retirement plans qualify under 401(a) of the Internal Revenue Code. They are “defined benefit plans”, which is a retirement plan that promises to pay a certain amount usually based on the number of years of service and on the average salary in the period before retirement.   The Public Safety Personnel Retirement System (PSPRS) was created by the state legislature for elected officials, judges, certain full-time certified peace officers, fire fighters and other public safety personnel assigned to hazardous duty. The PSPRS has 3 plan categories: EORP, PSRS, and CORP described below:              
Deadlines: Correct missed contributions for the current fiscal year within 30 days, or the end of the fiscal year, whichever is sooner. GAO-73A due by 12 pm (noon) on compute Tuesday.
ELECTED OFFICIALS RETIREMENT PLAN (EORP)  Retirement plan for Elected Officials, Justices of the Supreme Court and Judges of the Court of Appeals. 
PUBLIC SAFETY RETIREMENT SYSTEM (PSRS) Retirement plan for Certified Peace Officers, Fire Fighters, Game & Fish wardens, Attorney General investigators, Liquor Control Officers and State Park Rangers.  
CORRECTIONS OFFICER RETIREMENT PLAN (CORP) Retirement plan for Correctional Officers and other positions within Department of Correction (DOC) and Department of Juvenile Corrections (DJC) and Public Safety Dispatchers and Detention Officers

RETIREMENT: PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM

PMGAA NorthEast Development Plan Gets A Green Light

NEWS RELEASE
FOR IMMEDIATE RELEASE: April 03, 2017

Phoenix-Mesa Gateway Airport Gets FAA Clearance for Northeast Area Development Plan
When the federal government turned the former Williams Air Force Base over to the now Phoenix-Mesa Gateway Airport Authority (PMGAA), it was an expansive 3,000-acre parcel largely removed from the major population centers of greater Phoenix.

Much has changed in the past 25 years; and today Phoenix-Mesa Gateway Airport is at the center of a thriving and rapidly-expanding Phoenix East Valley. 
More than 1.5 million people now live within a 20-minute drive from the once remote facility.  As the airport has grown, so too has interest in developing the land surrounding it.
On March 21, PMGAA cleared another major development hurdle when the Federal Aviation Administration (FAA) issued its Finding of No Significant Impact (FONSI) and Record of Decision (ROD) for the Environmental Assessment (EA) for the Northeast Area Development Plan (NADP); clearing the way for future development of 700 acres of prime real estate adjacent to airport infrastructure and two growing highway systems.

 “Unlocking the northeast side of the airport for development is great news for Gateway Airport and the East Valley,” said Mesa Mayor John Giles, current chair of the Phoenix-Mesa Gateway Airport Authority Board. “The opportunity for high-wage job creation in this area will benefit the entire region and strengthens the airport’s role as an economic driver.”
There are currently more than 50 companies located within the airport’s boundaries, employing over 2,500 people.

J. Brian O’Neill, A.A.E. executive director/CEO of Phoenix-Mesa Gateway Airport Authority added, “We would like to thank our partners at the FAA for their commitment to this important project and their continued support of Phoenix-Mesa Gateway Airport.  We look forward to engaging both public and private sectors to transform this incredible asset.” 

About Phoenix-Mesa Gateway Airport:
Phoenix-Mesa Gateway Airport is owned and operated by the Phoenix-Mesa Gateway Airport Authority (PMGAA). PMGAA consists of representation from Mesa, Gilbert, Queen Creek, Gila River Indian Community, Phoenix, and Apache Junction. Gateway Airport offers nonstop passenger service to 40 cities via Allegiant and WestJet Airlines and welcomes more than 1.3 million passengers each year. Corporate, military, and general aviation customers are served by Gateway Aviation Services, a 24-hour full-service FBO located just north of the passenger terminal.
Phoenix-Mesa Gateway Airport Authority Media Contact:
Ryan Smith, Strategic Communications/Government Relations
Phone: 480-988-7617
Email: rsmith@gatewayairport.com

 

April Agenda + March Meeting Minutes: Mesa Economic Development Advisory Board

Today's meeting started just shortly after 07:30 a.m. with some late arrivals, but nonetheless got off to a fast start. It was a surprise to see District 1 Mesa City Council member for the second time at the table usually reserved for board members.

Images taken at this morning's meeting have been inserted to update this post yesterday. The Economic Development Advisory Board shall act as the advisory board to the Mesa City Council on matters pertaining to economic development, including goal setting, strategic planning, marketing and business recruitment, retention and expansion.
Source: mesaaz.gov

Mark Freeman to left of Bill Jabjiniak

The membership of the Economic Development Advisory Board shall include: nine (9) voting members up to six (6) ex-officio non-voting members.

Three of the ex-officio members shall be the Mayor, City Manager, and the President and Chief Executive Officer of the Mesa Chamber of Commerce, and three may be City of Mesa representatives that are currently sitting on the Greater Phoenix Economic Council Board of Directors.

Mayor John Giles and City Manager Chris Brady have not been present at these meetings for months. Sally Jo Harrison and Jeff Crockett were absent today
Call (480) 644-2398 for information.

Voting Members

Terry Benelli (17) - 2^nd TermExecutive Director
Local Initiatives Support Corporation (LISC) Phoenixtbenelli@lisc.org
James Christensen (19) - 2^nd TermPresident & CEO
Gateway Commercial Bankjamesc@gcbaz.com
Natascha Ovando-Karadsheh, Vice Chair (17) - 1^st TermOwner/Realtor
KOR Propertiesnataschak@KORproperties.com
Dominic Perry (17) - 1^st TermVice President
Avison Youngdominic.perry@avisonyoung.com
Jeff S. Pitcher, Chair (18) - 2^nd TermPartner
Ballard Spahr, LLP pitcherj@ballardspahr.com
Laura Snow (18) - 2^nd TermSenior Director, Strategy and Planning
Banner Healthlaura.snow@bannerhealth.com

Matt Likens (19) - 1^st TermLikens Healthcare & Medical Device Consulting
mlikens24@gmail.com
Deb Duvall (19) - 1^st Termdebbieduvall@cox.net

Scott Rudy (17) - 1st TermThe Boeing Company
scott.r.rudy@boeing.com

Ex-Officio Members

John Giles
Mayor
City of Mesa mayor@mesaaz.gov

Chris Brady City Manager
City of Mesa chris.brady@mesaaz.gov
Rich Adams, GPEC RepresentativePresident/CEO
Southwest Business Credit Servicerich.adams@nacmaz.org
Brian Campbell, GPEC RepresentativeAttorney
Campbell Law Group, Chartered bcampbell@campbellazlaw.com
Jeffrey Crockett, GPEC RepresentativeAttorney
Crocket Law Group PLLCjeff@jeffcrockettlaw.com
Sally HarrisonPresident & CEO
Mesa Chamber of Commerce sharrison@mesachamber.org

Staff

William Jabjiniak, Economic Development Director
City of Mesa william.jabjiniak@mesaaz.gov

[at right in this image, flanked by Mark Freeman]



Meeting Notice & Agenda
Economic Development Advisory Board
City Council Chambers 57 E. 1st Street, Lower Level
Tuesday, April 4, 2017 7:30 AM

    
1. Chair’s Call to Order
2. Items from Citizens Present
3. Approval of Minutes from March 7, 2017 meeting
4. LaunchPoint Overview
5. Smart & Connected AZ Initiative 
6. Director’s Update
7. Other Business
 Next EDAB Meeting- May 2nd 
8. Adjournment

Note: an additional presentation was made by Dominic Para, seen speaking immediately after the meeting with Mike Likens

MINUTES FROM LAST MONTH'S MEETING
RESULTS
Economic Development Advisory Board
City Council Chambers 57 E 1st Street, Lower Level
Tuesday, March 7, 2017 7:30 AM  
1. Chair’s Call To Order
Chair Jeff Pitcher called the March 7, 2017 meeting of the Economic Development Advisory Board to order at 7:34 am at City Council Chambers, 57 E 1st Street, Lower Level.
2. Items from Citizens Present
None
3. Approval of Minutes from February 7, 2017
Chair Jeff Pitcher called for a motion to approve minutes from the meeting held on February 7, 2017.  
MOTION: Laura Snow made a motion to approve the minutes. SECOND: Terry Benelli seconded the motion to approve the minutes. DECISION: Passed unanimously 
4. Visit Mesa Update
Discussion only; no formal action taken by the Board.  
5. Falcon Strategic Plan Update
Discussion only; no formal action taken by the Board.  
6. Director’s Report
Discussion only; no formal action taken by the Board.
7. Other Business - Next EDAB Meeting – April 7, 2017
8. Adjournment - Meeting was adjourned by Chair Jeff Pitcher at 9:07 am.

____________________________________________________________________________

NOTES & BACKGROUND OF THE EDAB CHAIRMAN
Jeffrey Pitcher
Jeffrey S. Pitcher is Team Leader of Ballard Spahr's Commercial Loan Servicing and Distressed Real Estate Teams. Mr. Pitcher focuses on distressed real estate and real estate development, finance, and leasing. He represents clients on a variety of distressed projects and also represents owners of master-planned and mixed-use developments, retail and office centers, multifamily developments, hotels, industrial properties, and other types of commercial real estate.
Source: BallardSpahr
Mr. Pitcher advises institutional lenders and special servicers on workouts and restructurings, and also represents investors in the purchase of distressed assets. He regularly advises clients on the acquisition, financing, and sale of commercial properties and in the negotiation and drafting of commercial and retail leases, guaranties, and related occupancy agreements for both landlord and tenant parties.
Representative Matters

• Represents various loan servicers in the foreclosure, loan workout, receivership appointment, and disposition of more than $348 million in total loans, including loans for multifamily, resort, retail and mixed-use, and office properties throughout Arizona
• Represents special servicers in loan workouts, mediation, loan sales, and foreclosure of residential properties in Arizona, Nevada, and Utah
• Represents a commercial lender on a $50 million loan on a golf course and fractional-interest project
• Represents a lender in the foreclosure of a $95 million resort
• Represents lenders in their entire Arizona portfolio, including loan workouts, deeds in lieu of foreclosure, and foreclosure review