Extracted text (via pymupdf)
18854 characters
Informal Meeting Minutes
Monday, September 16, 2019
9:30 AM
BOARD OF SUPERVISORS
Maricopa County, Arizona
(and the Boards of Directors of the Flood Control District,
Library District, Stadium District, Improvement Districts,
Housing Authority of Maricopa County and/or Board of
Deposit)
"The mission of Maricopa County is to
provide regional leadership and fiscally
responsible, necessary public services
to its residents so they can enjoy living
in healthy and safe communities”
Board Members
Bill Gates, Chairman, District 3
Clint Hickman, Vice Chairman, District 4
Jack Sellers, District 1
Steve Chucri, District 2
Steve Gallardo, District 5
County Manager
Joy Rich
Clerk of the Board
Fran McCarroll
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 9:30 AM
on Monday, September 16, 2019, in the Supervisors' Conference Room, 301 W. Jefferson, 10th Floor,
Phoenix, AZ 85003, with the following members present: Bill Gates, Chairman, District 3; Clint Hickman,
Vice Chairman, District 4; Jack Sellers, District 1; Steve Gallardo, District 5 (entered late). Absent: Steve
Chucri, District 2. Also present: Fran McCarroll, Clerk of the Board; Kelly Gardiner, Minutes Coordinator;
Joy Rich, County Manager; and Andrea Cummings, Legal Counsel.
PRESENTATION
Budget Office
1.
ECONOMIC DEVELOPMENT PRESENTATIONS
Economic Development Presentations
Chris Camacho, Greater Phoenix Economic Council
Mike Mooney, Visit Phoenix
Jennifer Mellor, Greater Phoenix Chamber of Commerce
Greg Tilque, Greater Phoenix Chamber of Commerce (C-49-19-048-P-00)
Chairman Gates opened the meeting welcoming the County’s Economic Partners: Greater Phoenix
Economic Council, Visit Phoenix, and Greater Phoenix Chamber of Commerce.
Chris Camacho, President & CEO, Greater Phoenix Economic Council (GPEC) came forward to give a
presentation to the Board.
Informal Meeting Minutes
Monday, September 16, 2019
Page 2 of 74
Mr. Camacho said the County investments are focused primarily on private sector investment and the
return on that money has been 40 to 1, meaning for each $1 invested, $40 comes back.
Mr. Camacho said he would recap this past year and started with the following slide. He stated
Phoenix is considered one of the top three markets for corporate investment due to the strong labor
pool and the production that is coming out of the colleges and universities in the valley.
~ Supervisor Gallardo entered the meeting ~
There have been many projects spread across the valley with nine new projects in the last two months
in the west valley. Phoenix is doing well with low unemployment relative to other major cities in the
country.
Supervisor Hickman asked what was considered a “high wage” job. Mr. Camacho said 130% of the
County median wage which is mid $40,000.
Informal Meeting Minutes
Monday, September 16, 2019
Page 3 of 74
The following three slides show the many companies involved in advanced manufacturing which have
contributed to the economic growth. Mr. Camacho spoke about the diverse industries that have come
to the valley in part due to the strong presence of financial services.
Informal Meeting Minutes
Monday, September 16, 2019
Page 4 of 74
The companies listed below are tech only and if those same companies were here ten years ago, they
would likely be customer service based rather than technology based.
Informal Meeting Minutes
Monday, September 16, 2019
Page 5 of 74
Mr. Camacho said the map shows where many of the projects are landing in the Phoenix area. There
has been a lot of growth on the central corridors including I 17, the Loop 101 and projected growth on
the up-coming Loop 303
Informal Meeting Minutes
Monday, September 16, 2019
Page 6 of 74
Greater Phoenix economy is strong and anticipates the next 6-12 months will show continued growth.
There are six technology hubs in the US and Greater Phoenix is one of them. He said the major
competitor markets to contend with are Dallas, Austin, Seattle, Denver, and Salt Lake City.
Mr. Camacho reviewed the above slide looking at the last five years. He stated GPEC has
experienced a steady economic recovery since 2008 with an uptick in the last five years.
Mr. Camacho gave a brief review of the above slide outlining the six goals for GPEC.
Informal Meeting Minutes
Monday, September 16, 2019
Page 7 of 74
Mr. Camacho thanked the Board and asked if there were any questions
Supervisor Sellers commented on the importance of direct airline access to Phoenix for international
travel to improve our marketability.
Mr. Camacho stated the importance of making the region attractive to international markets.
Supervisor Hickman asked Mr. Camacho to explain Magnet Sites.
Mr. Camacho said Magnet Sites are designed to encourage growth. The Magnet Sites with the
corresponding Foreign Trade Zone (FTZ), a federal designation, allows tax deferred or tax free (tariffs,
duty) on goods. Specifically, Magnet Sites allow goods to pass through the FTZ expeditiously without
the need for concurrence from all the taxing jurisdictions. Mr. Camacho stated, “our region currently
has an expeditious process and the Magnet Sites do not have a significant benefit.”
Chairman Gates thanked Mr. Camacho and GPEC for being a good economic partner.
Mike Mooney, Executive VP and COO for Visit Phoenix came forward to present FY 2018-19 Contract
Performance.
Informal Meeting Minutes
Monday, September 16, 2019
Page 8 of 74
Mr. Mooney started with an explanation of what Visit Phoenix does in the Greater Phoenix region, with
the slide illustrating the different elements of the Visit Phoenix model.
Informal Meeting Minutes
Monday, September 16, 2019
Page 9 of 74
Mr. Mooney stated the economy is good and the budget reflects that.
Informal Meeting Minutes
Monday, September 16, 2019
Page 10 of 74
Mr. Mooney reviewed the Mission and Vision Statement saying that it better reflects what destination
organizations do today. Unlike GPEC, Visit Phoenix’s goal is to have people come, spend their money,
have a great time, then go home with the desire to return.
The Greater Phoenix Region is experiencing growth as the numbers on the following slides reflect.
Financials, Convention Services, Visitors Services, and Convention Sales.
Informal Meeting Minutes
Monday, September 16, 2019
Page 11 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 12 of 74
Marketing has been going well with email and website activity on the increase. Media Relations,
Membership, Tourism slides which follow were also reviewed, and highlights were noted as reflected
by the statistics on the slides.
Informal Meeting Minutes
Monday, September 16, 2019
Page 13 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 14 of 74
Mr. Mooney continued his presentation by outlining the activity on the contract goals for this
organization. Each slide related to contract goals provided the statistics to date related to that goal. In
discussing Convention Business, he stated that 991 total meetings were held and the County Revenue
impact had reached 97% of the stated goal. He commented on the Board’s question regarding a
downturn in the economy stating that some Associations have backed out of planned conferences or
events and explained that they are changing some of their marketing from Facebook to Instagram.
This portion of the presentation concluded with statistics and graphs showing distribution of various
aspects of the organization’s focus by Supervisorial District including Booked-Room nights and Travel
Impacts.
Informal Meeting Minutes
Monday, September 16, 2019
Page 15 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 16 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 17 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 18 of 74
Mr. Mooney continued by outlining the 2019-20 Business Development Plan which included fiscal year
objectives and strategies for convention sales, convention services and marketing among other
objectives.
Informal Meeting Minutes
Monday, September 16, 2019
Page 19 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 20 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 21 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 22 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 23 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 24 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 25 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 26 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 27 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 28 of 74
The presentation from Visit Phoenix concluded with a look back at the economic impact of some
significant special events like the NCAA Final Four in 2017 and Super Bowl XLIX in 2015.
Informal Meeting Minutes
Monday, September 16, 2019
Page 29 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 30 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 31 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 32 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 33 of 74
Jennifer Mellor and Greg Tilque from Greater Phoenix Chamber of Commerce came forward to
present an overview of the Greater Phoenix Chamber’s accomplishments.
Mr. Tilque provided a summary of the previous year’s goals and performance metrics. He explained
that retention of contacts as well as expansion is important. The Chamber exceeded their goal in this
category as the number of visits has increased. The Performance Metrics slide provided additional
statistics on their goals, actual numbers, the percentage of the goal achieved and setting new goals for
2020. He commented that small businesses have gotten value from Chamber, and, even though there
are projections of a recession, businesses are optimistic for their future. The biggest issue of concern
is the workforce – the availability, cost and retention of workers is one focus of their “Find Your
Phoenix” program.
Informal Meeting Minutes
Monday, September 16, 2019
Page 34 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 35 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 36 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 37 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 38 of 74
Jennifer Mellor presented the next segment for the Chamber which included information about the
creation of the “Greater Phoenix Chamber Foundation.” She explained the development of Workforce
Collaboratives – Construction, Cybersecurity, Financial Services and Health Care.
Specifically, she gave an example of the hospital collaborative recognizing that there is a shortage of
nurses, but a waitlist at schools for training, and the unavailability of space for training. This
collaborative received $5.8 million for new training facilities. The plan is to work on similar strategies
for two new collaboratives in the coming year – Advanced Manufacturing and Information Technology.
In response to a question from Supervisor Gallardo about the effect of light rail’s expansion to the
south and the possible adverse impact on small businesses along that route, Ms. Mellor indicated they
would work on including that issue in the plans and goals for the coming year.
Informal Meeting Minutes
Monday, September 16, 2019
Page 39 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 40 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 41 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 42 of 74
2.
ECONOMIC FORECAST PRESENTATION
Economic Forecast Presentation
Alan Maguire, The Maguire Company (C-49-20-003-P-00)
Chairman Gates asked Alan Maguire, The Maguire Company to come forward and give the
Board an overview of the economic forecast.
Mr. Maguire reviewed the information on the following slides and commented on the
following points:
Informal Meeting Minutes
Monday, September 16, 2019
Page 43 of 74
A Global projection of 3.5% growth forecasted may be too optimistic
Germany, Hong Kong and India are all facing problems
Brexit is a significant issue to be aware of
The United States has moved again to the economic leader in the world
GDP isn’t the best indicator, but many continue to use it
Employment has increased dramatically with many getting their first job ever
The recovery has been choppy and somewhat inconsistent.
Factors impacting the choppy recovery include:
A “just in time” supply mentality which means a large inventory is not always
available
The workforce could be laid off quickly, but was hired back slowly
These factors make the economic quarters vary dramatically
Mr. Maguire reviewed the role of the Federal Reserve over a number of years, and
especially in light of the difficulties in the banking industry. During that time two of the
strongest banks took in the four worst lender institutions. He also reviewed record
employment statistics which showed the lowest unemployment claims since the 1960’s.
The next slides reviewed the history of the US Treasury Yield Curve.
Informal Meeting Minutes
Monday, September 16, 2019
Page 44 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 45 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 46 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 47 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 48 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 49 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 50 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 51 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 52 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 53 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 54 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 55 of 74
Mr. Maguire then provided several slides related to the US Economic Outlook. These
included projections of a steady continued growth but with a watchfulness toward some
international issues including Europe, China’s internal challenges and continued concerns
about Brexit.
The review and outlook for Arizona looks much like the entire United States with consumers
still showing a cautious attitude. In several of the following slides Mr. Maguire showed
overlays of Arizona and the United States, and, at times, including an overlay of the Phoenix
metropolitan area. He felt that a recession, if it comes, would be more of a slow fade instead
of a crash. The slides show a multi-year review of employment overall, and then employment
by various sectors including construction, manufacturing and financial. Mr. Maguire pointed
out that the distribution of employment among the sectors is now showing good diversification
and that job in Arizona are getting better wages.
In response to a comment that some national retailers seem to be in some economic trouble,
Mr. Maguire commented that consumers are not necessarily buying less, but rather, buying in
different places. He also stated that Arizona is now more than the traditional “Five C’s,”
where the state sent out more raw materials. Now, Arizona is making more here and sending
the goods around the world with main export destinations being California, Texas, a
combination of the other 48 states, Mexico and Canada.
Informal Meeting Minutes
Monday, September 16, 2019
Page 56 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 57 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 58 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 59 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 60 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 61 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 62 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 63 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 64 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 65 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 66 of 74
Mr. Maguire’s presentation then turned toward population growth and consumer confidence.
The entire state population continues to grow with Maricopa County showing to be the
continued area of significant population increase. The continuing main reason that people
are moving to Arizona is for a job.
Although there have been some slips in consumer confidence, has been strong over the past
few years. Recently, there has been a slight weakening and Mr. Maguire commented that
there could be a decline. However, another important measure of consumer confidence is
auto sales which have remained strong. There could be some discounting in auto sales and
offers of zero interest.
Informal Meeting Minutes
Monday, September 16, 2019
Page 67 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 68 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 69 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 70 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 71 of 74
Mr.Maguire began the conclusion of his presentation with information regarding the Maricopa
Road tax (which is a sales tax) and general sales tax revenues. These are always indicators
to watch. The sales tax revenue is still growing and two factors to watch would be retail sales
and contracting.
With 2020 being an election year, that is a factor to consider in projections. This coming year
promises to have a lot of activity around the elections which may affect the economy. At this
point Mr. Maguire did not see a financial crisis on the near horizon.
Informal Meeting Minutes
Monday, September 16, 2019
Page 72 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 73 of 74
Informal Meeting Minutes
Monday, September 16, 2019
Page 74 of 74
3.
EXECUTIVE SESSION
Vote to convene in Executive Session to consider items on the Executive Agenda dated
September 16, 2019, for Board of Supervisors and relevant Special Districts pursuant to statutory
authority listed for each item.
Motion to approve by Supervisor Hickman, seconded by Supervisor Sellers
Ayes: Sellers, Gates, Hickman, Gallardo
Absent: Chucri
MEETING ADJOURNED
There being no further business to come before the Board, the meeting was adjourned.
___________________________
Bill Gates, Chairman of the Board
ATTEST:
____________________________
Fran McCarroll, Clerk of the Board