A number of aerospace manufacturers now have a footprint in Arizona, including Boeing, General Dynamics, Honeywell Aerospace, Northrup Grumman, and Raytheon Technologies. In fact, aerospace is one of the largest economic sectors in Arizona, and with more than 1,200 companies engaged in the market, the state ranks 5th in the country for aerospace-related employment.
But it is not just the big boys who find Arizona’s 65,298 square miles of rural airspace beneficial. Many small- and medium-sized designers, developers, and manufacturers have also flocked to Arizona to build or test their wares.
Earlier this week, the Arizona Technology Council hosted its annual Arizona Aerospace, Aviation, Defense, and Manufacturing (AADM) conference in Scottsdale. And of particular interest was unmanned aircraft systems (UAS) and unmanned aerial vehicles (UAV), which until a decade ago were considered in terms of military application.
In recent years, the UAS and UAV technologies have been embraced on a smaller scale by law enforcement, civil search and rescue, meteorology services, construction and engineering firms, farmers and ranchers, insurance company claim adjusters, even delivery companies.
And it is through the efforts of organizations such as the Arizona Aerospace Association and the Arizona Commerce Authority that the state continues to be a favored location for aerospace companies, large and small.
Arizona Aerospace promotes Arizona’s ideal meteorological conditions, protected airspace, favorable cost of doing business, and business-friendly regulatory environment. It also educates stakeholders as well as elected officials and their staff at all levels of government about the need for responsible industry-related legislation and public policy to facilitate a thriving aerospace industry in Arizona.
The group has a test site with hangar available for rent at the Benson Municipal Airport for use with test flights just a 30 minute drive from the U.S. Army’s Fort Huachuca in Sierra Vista and the Davis-Monthan U.S. Air Force base in Tucson.
On July 15, Aerospace Arizona staff attended the AADM event in Scottsdale, and next month will be in Dallas to promote Arizona at the InterDrone Conference & Exposition. Then in September, staff will be in Las Vegas for the Commercial UAV Expo Americas Showcase which brings together the world’s leading commercial UAS technology companies from airframes to sensors, software to services and more.
Arizona is also promoted to the military and civilian aerospace industry by the Arizona Commerce Authority, which established its AZSkyTech program in 2018 to help grow the state as “the premier place in the world to responsibly test, deploy and advance Unmanned Aircraft Systems (UAS) technology and policy.”
That endeavor is supported by coursework and degree programs at the University of Arizona and Arizona State University, as well Cochise Community College.
Meanwhile, Fort Huachuca in Sierra Vista continues to be a leader in the Army’s testing of UAS technology, which is helped by its rural location which includes mountain range, desert land, and more than 960 square miles of restricted airspace. It is estimated that Fort Huachuca has trained thousands of military members and support personnel in the use and management of UAS technology over the last decade.
Included in Arizona’s new $12.8 billion budget are several capital outlay appropriations of more than $163 million for 22 specified highway construction projects, ranging from $46 million to repave State Route 95 in Mohave County and money to $560,000 for improvement to Jerome’s historic Main Street.
Other big ticket projects funded by Senate Bill 1820 for Fiscal Year 2022 are $25 million to construct an overpass at State Route 347 and Riggs Road, $13.6 million to “rehabilitate” pavement along State Route 77 in Oro Valley, $10.6 million to improve State Route 90 near Fort Huachuca in Sierra Vista, and $10 million to improve State Route 95 near the U.S. Army’s Proving Ground in Yuma.
The ADOT appropriations in SB1820 also include $150,000 to study options for expanding the on and off ramps at the intersection of State Route 303 and Grand Avenue in Sun City and $140,000 to study guardrail needs on State Route 377 from Heber to Holbrook.
Being appropriated does not mean a project will be undertaken anytime soon, as land rights may need to be obtained, environmental studies may be needed, and planning phases must be completed.
But while many of the 22 projects specifically funded by SB1820 may not break ground for months, a host of other ADOT construction projects were greenlighted earlier this month when the Arizona Transportation Board announced its Five-Year Program for 2022 to 2026.
Among those projects is the replacement of the Gila River Bridge with a wider set of bridges on Interstate 10 between Phoenix and Casa Grande. The project carries a $83 million price tag with construction set to begin in 2023.
Another Five-Year Program project, at a cost of $328 million, will add traffic lanes on Interstate 17 between Anthem Way and Sunset Point. That project is slated to begin next year, as is a $41 million widening project on U.S. Highway 93 between Tegner Street and Wickenburg Ranch Way. And the first phase of a $70 million construction project for an Interstate 40 / U.S. Highway 93 interchange in western Kingman will start in 2024.
The projects to widen the key Arizona corridors of I-17 and I-10 will be partially funded by the Maricopa Association of Governments.
“The improvements to these Key Commerce Corridors represent two of the most critical transportation priorities in Arizona,” ADOT Director John Halikowski said in response to the Five-Year program. “The additional lanes are important to improve safety and efficiency while the state continues to attract jobs, businesses and economic growth. At the same time, ADOT is investing most rural highway funding to preserve existing roads and bridges to keep them in good condition for the movement of people and freight.”
More than $1 billion collected through gasoline and diesel fuel taxes will be allocated statewide for pavement preservation projects to upgrade 581 lane miles of poor, fair, and good condition roadways. And when Gov. Doug Ducey signed SB1820 he also authorized $90 million for pavement rehabilitation projects outside of Maricopa and Pima counties for roadways graded poor or fair, along with $50 million from the state’s Fiscal Year 2021 budget surplus to ADOT toward the cost of widening I-10 between Phoenix and Casa Grande.
The appropriation reverts back to the General Fund on Jun 30, 2022 if ADOT is unable to secure the right of way agreements needed to move the project forward.
Several Arizona highway projects are also being funded by more than $150 million of COVID-19 relief money allocated to the state earlier this year.
Attorneys for the Goldwater Institute and the City of Phoenix will be in court Wednesday to argue over whether government workers subjected to a collective bargaining agreement can be forced to finance union activities, including a union’s political endeavors.
The issue before Judge Daniel Martin of the Maricopa County Superior Court is a legal challenge brought on behalf of two city employees over a practice known as “release time” approved by the Phoenix City Council in 2019. Release time allows some city employees to be paid to work for their private union instead of working for the public.
Employees utilizing release time are allowed to engage in activities such as lobbying, union membership drives, filing grievances against the employer, and wage and benefit negotiations. Release time activities of city employees are subject to the discretion and control of the union, not the city which pays the employees.
In May 2019, the City of Phoenix signed a Memorandum of Understanding (MOU) with the American Federation of State, County, and Municipal Employees, Local 2384, Field Unit II (AFSCME) which serves as the exclusive bargaining unit for a wide range of public workers, including but not limited to electricians, mechanics, security guards, street technicians, and maintenance workers.
AFSCME is the nation’s largest public services employees union with more than 1.3 million working and retired members. The MOU applied to all City of Phoenix employees assigned under Field Unit II whether union members or not, and it provides for myriad release time benefits, including four full-time release positions.
“That means that four city employees are released full-time to work exclusively for the union at the public’s expense,” according to the Goldwater Institute, which also noted nearly 3,200 additional paid work hours are available to other union representatives. That is roughly equivalent to 80 weeks of full-time work.
The MOU between Phoenix and AFSCME also guarantees compensatory time for high-ranking union officials using release time, as well as additional hours and payment for AFSCME members who attend union seminars, lectures, conventions, and workshops.
In October 2019, attorneys with the Goldwater Institute sued the City of Phoenix on behalf of two Field Unit II city employees who contend the release time salaries and benefits in the MOU are funded by all government employees of a specific bargaining unit.
The result, the lawsuit argues, is that non-union members are forced to fund union activities in violation of the First Amendment to the U.S. Constitution, along with Arizona’s Right to Work laws and other state constitutional provisions, the employees contend. The lawsuit also contends the four full-time release time employees “are not contractually required to provide an accounting to the City for how they use release time.”
Judge Martin will hear oral arguments Wednesday and Friday in dueling motions for summary judgment filed by the parties. Court records show AFSCME has been granted intervenor status in the case.
Among the organizations also opposed to release time policies is the American Legislative Exchange Council (ALEC) which has developed draft legislation that lawmakers across the country can use in an effort to ban paid union activity by public employees.
Under the ALEC draft legislation, it would be “against public policy” for a public employer like the City of Phoenix to enter into a deal with any private union to compensate a public employee for union activities.
“While public employees should not be prohibited from freely associating outside of their employment duties, including hiring individuals to help represent their interests, this should occur at public employee, not taxpayer, expense,” according to the ALEC website.
When Gov. Doug Ducey signed Senate Bill 1820 last month, general contractors, construction companies, and construction-industry support businesses had a lot to be happy about given the more than $80 million appropriated for capital projects by several state agencies.
Among the most expensive projects funded by SB1820 are $5 million to Yuma County for military installation preservation and enhancement by relocating the Yuma Fairgrounds, nearly $12 million to restore and renovate the historical capitol building, and $25 million for the Arizona Department of Veterans’ Services to construction a veterans’ home in northwest Arizona.
Other capital project appropriations are $4 million for maintenance to the Attorney General building on 15th Avenue, $3.5 million for repairs to the House of Representatives and Senate buildings, $3.1 million for construction of a new Arizona Department of Transportation (ADOT) maintenance facility in Wickenburg, $3 million for construction of a wellness and training center for the Arizona Department of Public Safety, and $2.8 million for demolition or conversion of state-owned buildings on West Jefferson Street.
There is also $2.5 million allotted for a nonprofit organization to construct an international dark sky discovery center, $2.5 million for new doors at the Arizona Department of Juvenile Corrections’ Adobe Mountain School Facility, and $2 million to demolish unused buildings on the Arizona State Hospital campus.
Many smaller capital projects are included, such as improvements at the Town of Taylor rodeo arena, replacement of the fire alarm system in the Arizona Veterans Memorial Coliseum, construction of brine tanks for ADOT in Globe, Keams Canyon, Prescott Valley, and Show Low, and replacement of ADOT vehicle fueling facilities in Flagstaff, Holbrook, and Kingman.
The appropriations also included money to fund several projects for the Arizona State Parks Board, including construction of an amphitheater building at Dead Horse Ranch State Park in Cottonwood, replacement of discovery center roof at Kartchner Caverns State Park in Benson, replacement of the fire suppression system and a maintenance building at Red Rock State Park in Sedona, as well as construction of a new park at the Rockin’ River Ranch Park in Camp Verde.
Funding for a major fire safety upgrades at the Arizona State Prison Complex – Eyman in Florence was also included in the new budget. The more than $25.5 million project will receive monies from the state’s General Fund, the Arizona Correctional Industries Revolving Fund, the Special Services Fund, the Inmate Store Proceeds Fund, and the Prison Construction and Operations Fund.
The FY 2022 budget also includes appropriations for several building renewal projects, including more than $22 million from the state’s General Fund for the Arizona Department of Corrections (ADC), which is on top of nearly $6 million from ADC’s own Building Renewal Fund.
Another $6.2 million of state General Fund monies was appropriated for the Arizona Department of Administration (ADOA) to be spent on major maintenance and repair activities for state buildings. That will be added to $18 million from the Capital Outlay Stabilization Fund.
Among other building renewal appropriation include $1.2 million to Arizona Game and Fish Department and $15.4 million from the State Highway Fund for use by ADOT.
In most instances, the monies come with restrictions or requirements. ADOA is required to provide two reports -in November 2021 and May 2022- to the Joint Legislative Budget Committee (JLBC) on the status of all capital projects and expenditures. The same requirement applies to ADC, AZGFD, and ADOT.
And in a use it or lose it provision, any unexpended building renewal appropriations as of June 30, 2023 revert back to the fund from which they were appropriated.
Questions have been raised about a private law firm’s handling of a campaign finance violation investigation involving the Town of Gilbert’s recent mayoral race, while others are asking why the law firm was involved in the first place.
Last week an attorney with Fitzgibbons Law Offices reported to Gilbert Town Attorney Chris Payne that legal sufficiency does not exist to establish a violation of state election law with respect to dozens of campaign-related signs, despite a finding by the Phoenix City Clerk earlier this year of “reasonable cause” to believe a campaign finance violation occurred.
The law firm’s decision appears to have been made without reviewing bank records of the parties involved nor speaking to additional witnesses, a fact not sitting well with many in Gilbert and Maricopa County who support election integrity.
On Nov. 11, 2020, the Town of Gilbert received a complaint related to dozens of signs put up around town that were critical of Matt Nielsen, who lost to former city councilwoman Brigette Peterson in a mayoral runoff race.
Based on citizens’ statements and a private investigator’s report, none of the signs included “paid for by” or “authorized by” verbiage. Nielsen filed a campaign violation complaint alleging the Public Integrity Alliance Committee, headed by Tyler Montague, was involved with the anti-Nielsen signs. Public records show the committee was actively involved in supporting Peterson’s campaign.
The City of Phoenix handled the initial phase of the violation review to avoid the conflict of interest of having Gilbert town staff involved. In February, the Phoenix City Clerk announced there was “reasonable cause” to believe a campaign finance violation was committed in connection to the signs that Montague admitted paying for in cash and picking up at a print shop.
The second phase of the campaign finance complaint would normally have involved Town Attorney Chris Payne reviewing the reasonable cause report from the City of Phoenix in order to determine which state law had been violated.
However, town officials once again declared a conflict because Payne and his staff work at the pleasure of the town’s mayor and council. Instead of asking the Phoenix City Attorney or the Maricopa County Attorney’s Office to handle the second part of the investigation, town officials hired a private law firm to do the work; a law firm which needs to rely on Peterson’s approval for future business with the town.
During its investigation, attorneys for Fitzgibbons had access to a statement Montague provided the City of Phoenix in which he described seeing several of signs laying on the ground while driving by a polling place at the Gilbert Recreation Center on Nov. 3, Election Day.
According to Montague’s statement, he replaced four or five of the signs even though he did not originally place those signs. He also said he saw a woman remove the same signs he had just replaced and told her it was illegal to take down political signs without authorization.
The woman previously told a private investigator that the man told her she was committing a misdemeanor and she should not touch” his” signs. The man was identified as Montague through his license plate. He told the Phoenix clerk that his activities were not an operation of the Public Integrity Alliance Committee.
Once retained, a Fitzgibbons attorney issued a subpoena in March to the print shop where the anti-Nielsen signs were printed. In response, an invoice in Montague’s name was provided by the printer, who said Montague ordered and paid for the signs with $500 cash.
A subpoena was also issued to Montague seeking “all information related to the purchase of any signs pertaining to the 2020 election for the Mayor of the Town of Gilbert that reference Matt Nielsen. Such information shall include, but not be limited to, the name and contact information for any vendor that made such signs, purchase orders, receipts, wording included on the signs and any images of the signs.”
Montague replied again that the anti-Nielsen signs were not funded by himself or the Committee. He explained that the printer’s invoice ended up in Montague’s name only because he “volunteered to pick up those up for a friend who funded them. Public Integrity Alliance was not involved in any way.”
It should be noted that the invoice numbers for both Public Integrity Alliance’s sign purchases, as well as the order numbers for both purchases are sequential, indicating that the signs had been ordered at the same time and paid for at the same time.
In a July 6 report to Payne, Fitzgibbons attorney Tina Vannucci noted that ARS 16-925(A) states a “person that makes an expenditure for an advertisement or fund-raising solicitation, other than an individual, shall include [certain] disclosures in the advertisement or solicitation…”
Vannucci noted “there is not legal sufficiency” to establish that Montague acted in his capacity as President of the Committee, or on behalf of the Committee, or that the Committee purchased the signs at issue in the Complaint which were not properly labeled.” And because the statute specifically exempts individuals from the “paid for by” or “authorized by” language, if Montague was responsible for the signs at his own volition then he cannot be charged with the violation.
What is not mentioned in the Fitzgibbons report is whether Montague was asked who the “friend” was in the event that person was acting on behalf of a committee or other organization. In addition, there was no subpoena issued for bank records belonging to Montague and the Public Integrity Alliance Committee which may have revealed whether Montague received or requested reimbursement or petty cash for the anti-Nielsen signs.
The next meeting of the Gilbert town council has not been confirmed. It is unclear whether any formal action on the campaign complaint is necessary by the council, although the town will have to approve a bill at some point from Fitzgibbons for legal services.
