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Informal Meeting Minutes Monday, August 27, 2018 Board Members 10:00 AM Steve Chucri, Chairman, District 2 Bill Gates, Vice Chairman, District 3 BOARD OF SUPERVISORS Denny Barney, District 1 Maricopa County, Arizona Clint Hickman, District 4 (and the Boards of Directors of the Flood Control District, Steve Gallardo, District 5 Library District, Stadium District, Improvement Districts, and/or Board of Deposit) County Manager Joy Rich "The mission of Maricopa County is to Clerk of the Board provide regional leadership and fiscally Fran McCarroll responsible, necessary public services to its residents so they can enjoy living in healthy and safe communities.” Meeting Location Supervisors' Conference Room 301 W. Jefferson, 10th Floor Phoenix, AZ 85003 BOARD OF SUPERVISORS The Board of Supervisors of Maricopa County, Phoenix, Arizona, convened in Informal Session at 10:00 AM on Monday, August 27, 2018, in the Supervisors' Conference Room, 301 W. Jefferson, 10th Floor, Phoenix, AZ 85003, with the following members present: Steve Chucri, Chairman, District 2; Bill Gates, Vice Chairman, District 3; Denny Barney, District 1 (entered late); Clint Hickman, District 4. Absent: Steve Gallardo, District 5. Also present: Fran McCarroll, Clerk of the Board; Joy Rich, County Manager; and Andrea Cummings, Legal Counsel. Minutes compiled by Lori Medaris, Minutes Coordinator. PRESENTATION Budget Office 1. ECONOMIC DEVELOPMENT PRESENTATIONS Presentation regarding the Economic Development Presentations. Chris Camacho, Greater Phoenix Economic Council Mike Mooney, Visit Phoenix Todd Sanders, Greater Phoenix Chamber of Commerce Jennifer Mellor, Greater Phoenix Chamber of Commerce, Vice President of Economic Development (C-49-18-042-P-00) Greater Phoenix Economic Council Chris Camacho, Greater Phoenix Economic Council (GPEC), explained that GPEC is now trying to raise more private dollars to support their mission. At the beginning of this mission, the division between private and public funding was 50%/50%. Now funding is 65% private funding and 35% public funding. ~ Supervisor Barney entered the meeting ~ Mr. Camacho stated they are recruiting business from outside the County and state. He provided statistics for the businesses that have been brought in and the benefits this brings to Informal Meeting Minutes Monday, August 27, 2018 Page 2 of 13 the County. He reviewed the Regional Results Summary seen below and stated they have economists that provide them with the information and projections: Mr. Camacho reviewed the benefits to the County through Results Through Regional Success: Informal Meeting Minutes Monday, August 27, 2018 Page 3 of 13 The following illustration reflects direct revenue from all the venues from the FY 2018 funding. There is a revenue return of $41 to every $1 : The following illustrates high performances for FY 2018. GPEC was ranked either first, second or third in all metrics. Only Phase I is counted on projects such as number of jobs, payroll, etc. Informal Meeting Minutes Monday, August 27, 2018 Page 4 of 13 Below is a list of new businesses locating in the Greater Phoenix area in FY 2018. There was a great regional balance for this year. Mr. Camacho reviewed the FY 2018 metrics seen below: Informal Meeting Minutes Monday, August 27, 2018 Page 5 of 13 There was no paid advertising in 2018, but they have personnel who work on “earned media coverage” and they perform media outreach aggressively. Mr. Camacho gave a brief review of the headlines that have helped with bringing more companies to the Phoenix area including block chain. The Board asked how block chain was working in Arizona. Mr. Camacho explained that title companies are moving to block chain aggressively and Arizona is becoming known for pre- emerging technologies. GPEC is addressing regional competitiveness with the following basic goals: Industry Prospecting Regional Economic Development Cooperation Regional Marketing Promotion Mr. Camacho reviewed the following Business Attraction Action Items and explained the competitive parts. He expects their metrics to go up by over 20%: Informal Meeting Minutes Monday, August 27, 2018 Page 6 of 13 In response to questions from the Board, Mr. Camacho stated that Nicola Motors is still growing and have new sites, but they have not finalized their final mega site. He addressed the question about autonomous vehicles and how to stay ahead of other states. He said they have progressed beyond testing and are now working on safety, etc. They need to align the City of Phoenix and Maricopa County regarding infrastructure for this endeavor. The government has to have the right kind of proving ground and have the right regulatory set. Groups will have to make thoughtful presentations to the Legislature. The Board commented on GPEC’s evolution and congratulated them on the 65/35 funding model. They understand this is very difficult to do. Visit Phoenix Mike Mooney, Visit Phoenix, noted that they are the only Maricopa County Convention and Visitor Bureau that serves and markets all of the County. They focus on six basic activities: Informal Meeting Minutes Monday, August 27, 2018 Page 7 of 13 Mr. Mooney noted the FY 18-19 budget is $17 million and is only increased by 3%. This is interesting because the lodging economy is robust and healthy and the City of Phoenix taxes are up 12%. The illustration below shows what their core competency looked like and Mr. Mooney explained each: Informal Meeting Minutes Monday, August 27, 2018 Page 8 of 13 Visit Phoenix was able to set records in all metrics and Mr. Mooney reviewed the graphs illustrating statistics by Supervisorial Districts. Informal Meeting Minutes Monday, August 27, 2018 Page 9 of 13 A review of the metrics show that they exceeded all of their metrics. Informal Meeting Minutes Monday, August 27, 2018 Page 10 of 13 Informal Meeting Minutes Monday, August 27, 2018 Page 11 of 13 Mr. Mooney explained the research project they performed this year stating they had their website looked at by Destinations Analyst to determine what the website was worth. For people who already come to Maricopa County for conventions or to visit family, the website influence generated almost $38 million incremental direct spend. Below is a graph illustrating Visit Phoenix membership dues by Supervisorial Districts: Visitor Services did not reach 100% or over on walk-in visitors served but did exceed their goals in the other category. Informal Meeting Minutes Monday, August 27, 2018 Page 12 of 13 Mr. Mooney explained the impact and difficulties in hosting the Super Bowl and the NCAA Final Four. They were able to meet the requests made by these entities for lodging, etc. Mr. Mooney stated Visit Phoenix formulated a Business Development Plan and it can be reviewed at visitphoenix.com/members/resources. He informed the Board that the 2018 Annual Meeting will be held September 18, 2018 and invited each Member to attend. Supervisor Gates asked what the upcoming year was looking like for the convention center. Mr. Mooney responded that they were concerned that 2019 was going to be a problem year but it looks like it is not going to be near the problem they had anticipated. Another problem year is expected in 2023. Greater Phoenix Chamber of Commerce Todd Sanders, President and CEO, Phoenix Chamber of Commerce, informed the Board that its main goal is to keep businesses in Arizona and help them expand through the Business Retention and Expansion Program. He stated that 80% of new jobs come from existing Arizona employers. Mr. Sanders reviewed the 2018 metrics noting they met or exceeded their goals. He said that 98% of the companies in Maricopa County have rated the business climate as good or excellent. This is a 6% increase. In FY 2018, 55% of businesses felt the biggest threat is the uncertainty of economic conditions. Mr. Sanders reviewed what the businesses think will cause this uncertainty. Mr. Sanders explained some interesting changes in the workforce noting that businesses are at full employment since FY 2017. The challenge to the Chamber is to find available people to fill the needs in FY 2018. Chairman Chucri asked if employee retention numbers were high. Mr. Sanders responded that the retention numbers were good. He said a concerning trend is the retention of veteran employees. Businesses are wanting to hire veterans but are having a hard time keeping them. He said part of the problem is understanding some of the things veterans need and putting them in the right position that will keep them engaged and growing. Another question from the Board concerned the cannibalization in industry and raising the levels of pay. Mr. Sanders said this was a big concern and they are focused on bringing new people onboard. Mr. Sanders introduced Jennifer Mellor to the Board to discuss workforce development. This area is one of the biggest concerns being faced. Ms. Mellor explained that they brought together businesses and explained that cannibalizing each other could not continue. In a collaborative effort these businesses were asked the following: A. How to attract new talent into the market; B. How to better develop talents; C. Building more career awareness around different industries and opportunities. Ms. Mellor noted some of the employers that are a part of the collaborative with 200 employers engaged in this work. They are taking into consideration all of the communities. She reviewed the success of the pilot programs for the past year and what is planned for the current year. She explained some initiatives taking place in financial services market; the health care markets, more specifically specialty nurses; and the construction trade services. Informal Meeting Minutes Monday, August 27, 2018 Page 13 of 13 Ms. Mellor reviewed the FY 2019 focus: Business Retention & Expansion o Quality over Quantity Quarterly “Pulse of Business” Surveys Workforce Development Regional Awareness o Economic Development Insider Series/State of the County o Economy in Focus Newsletter Policy and Advocacy Phoenix Health Care Sector Partnership Supervisor Gates expressed his thanks for all three organizations and the work that was done. This organization helps businesses already in place which is so important. Supervisor Hickman asked that the Board be kept updated on the project regarding construction jobs and training. Chairman Chucri expressed his concerns about how someone with a Master’s Degree, Bachelor of Arts (MBA) could be unemployed for 18 months. 2. EXECUTIVE SESSION Vote to convene in Executive Session to consider items on the Executive Agenda dated August 27, 2018, for Board of Supervisors and relevant Special Districts pursuant to statutory authority listed for each item. Motion to approve by Supervisor Barney, seconded by Supervisor Gates Ayes: Barney, Chucri, Bill Gates, Hickman Absent: Gallardo MEETING ADJOURNED After discussion on the items on the Executive Agenda, and there being no further business to come before the Board, the meeting was adjourned. ______________________________ Steve Chucri, Chairman of the Board ATTEST: ____________________________ Fran McCarroll, Clerk of the Board