AzBusiness magazine November/December 2014

A Z BUSINESS

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CONNECT » GUIDE » INSPIRE

NOVEmber // DECEMber 2014

GoDaddy founder Bob Parsons has made a fortune, now he’s giving it all away

$4.95

A ZRE : ARIZONA COMMERCIAL REAL ESTATE

NOVEMBER // DECEMBER 2014

NOVEMBER // DECEMBER 2014

REBEL with a cause

Arizona Hospital & Healthcare Association AZ Banker Association Cheif

33 62

financial officers

65

AZ Forward

113

CELEBRATING 30 YEARS OF SERVING THE FINANCIAL NEEDS OF ARIZONA BUSINESSES Much has changed since we opened our doors for business in 1984. We’ve grown from just one branch in Tucson to a network of over 70 offices serving the financial needs of Arizonans and Arizona businesses in more than 50 communities throughout the state. What has not changed is our commitment to Arizona. With local decision makers and bankers who take the time to understand current market conditions, we work to tailor solutions to meet the needs of our clients and help them achieve success.

AB | November-December 2014 1 NBAZ.COM | MEMBER FDIC

Table Of Contents 6 12 14 16 22 24 26 28 30

10,000 reasons to care this year

Up Front CEO Series

This is the season of giving.

And you don’t have to look very far into Arizona’s business community to find individuals who will leave this world better than they found it.

Real Estate Healthcare Marketing HEAT

33

• Ira A. Fulton, founder of Fulton Homes, has donated more than $300 million to universities and other organizations, including more than $168 million to ASU.

Law Tourism Dining

33 AZ Bankers Association

57 Holiday Planning Guide

57

Officers

We have launched “10,000 Reasons.” It gives each nonprofit featured in Corporate Angels in this issue or in the May/June 2015 issue, a chance to win $10,000

Angels

2 AB | November-December 2014

In addition to spotlighting Parsons’ charitable efforts in this issue of Az Business, we also feature

based publications, wants to help those nonprofits make an even bigger impact.

97 Corporate

Az Business on the Go: azBIGmedia.com

• Tom Lewis, founder of T.W. Lewis Homes, has donated 10 percent of his company’s earnings to the T.W. Lewis Foundation since 2001. On Nov. 13, Lewis and his wife, Jan, will be named Outstanding Philanthropists at the Association of Fundraising Professionals 30th Annual Philanthropy Leadership Awards.

Corporate Angels, a look at nonprofits that make a difference in Arizona through the support of the business community. AZ Big Media, which publishes this magazine and seven other Arizona-

65 Chief Financial

113 Arizona Forward

• Bob Parsons, the former CEO of GoDaddy and cover model for this issue of Az Business, has pledged to give half his wealth — estimated in excess of $1 billion — to charity.

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from AZ Big Media. Want to learn more? Visit azbigmedia.com or call 602-424-8855.

Happy holidays.

Michael Gossie Editor in chief michael.gossie@azbigmedia.com

AB | November-December 2014

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AZBio honors state’s top bioscience leaders The Arizona Bioindustry Association (AZBio) honored the state’s leading bioscience educators, innovators and companies with 2014 AZBio Awards.

Some of those earning honors include:

<<

Roy Curtiss, III, PhD, of the Biodesign Institute at Arizona State University, earned the 2014 AZBio Pioneer Award for Lifetime Achievement. “During his career, Roy Curtiss has had a profound impact on microbiology research and been a true pioneer in developing salmonella-based vaccines that are effective against a range of infectious diseases, which are still the leading cause of worldwide death,” said Joan Koerber-Walker, president and CEO of AZBio. >> Insys Therapeutics, Inc., a commercial-stage specialty pharmaceutical company based in Chandler, was named 2014 Bioscience Company of the Year. Insys was the top-performing IPO of 2013, with more than 380 percent growth in shareholder value and a market cap in excess of $800 million at the end of the year. << Jim Lane, mayor of Scottsdale, earned the 2014 Public Service Award. “Mayor Lane has made the development and the promotion of the bio-life sciences industry in the Greater Phoenix region as well as the City of Scottsdale a top priority,” said Koerber-Walker. “His leadership extends across many areas, including the launch of the 'Scottsdale Cure Corridor.'” >> Charles Arntzen, PhD, of ASU’s Biodesign Institute, was named 2014 Arizona Bioscience Researcher of the Year. Arntzen has worked tirelessly on new platforms to deliver vaccines.

He has focused on plant-based vaccine delivery systems and may have hit on an unlikely combination of using tobacco as a way to make and deliver a promising vaccine for the Ebola virus. << Jack B. Jewett, president and CEO of the Flinn Foundation, earned the Jon W. McGarity Bioscience Leader of the Year award. “Great leaders embrace possibilities and take the steps to make them reality,” said Koerber-Walker.

“Thanks to (Jewett’s) leadership and the commitment of the Flinn Foundation, Arizona has a Bioscience Roadmap that charts our statewide bioscience strategies through 2025.”

4 AB | November-December 2014

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Editor: Amanda Ventura Interns: Claire Cooper | Brittany Dierken | Meryl Fishler Kayleigh Shufeldt | Alisa Stone Contributing writers: Emily Gersema | Lorin Parkhurst ART Art director: Mike Mertes Graphic designer: Shavon Thompson DIGITAL MEDIA Digital manager: Jason Leonardy Web developer: Eric Shepperd Interns: Ashley Incardone | Tia Richardson | Robin Sendele Az BUSINESS MAGAZINE Senior account manager: David Harken Account managers: Ann McSherry | Shannon Spigelman MARKETING/EVENTS Manager: Angela Vaughn Interns: Lea Martin OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson AZRE | Arizona Commercial Real Estate Director of sales: Steve Koslowski AZ BUSINESS LEADERS Director of sales: Mark Blum RANKING ARIZONA Director of sales: Sheri King EXPERIENCE ARIZONA | Play Ball Director of sales: Carla Baran AZ BIG MEDIA HOME SHOWS SCOTTSDALE HOME & TRAVEL SHOWS Exhibit directors: Kerri Blumsack | Tina Robinson Az Business magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2014 by AZ BIG Media. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

WHAT DO STARTUPS AND SPACECRAFT HAVE IN COMMON?

WE

LAUNCH BOTH.

We’re #2 among public schools for entrepreneurship, and our planetary scientists have published more research in the past decade than any other university on Earth.

That means whether you’re studying for science, business, or any of the University of Arizona’s over 120 undergraduate degrees, you’re guaranteed an education that’s out of this world.

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AB | November-December 2014

5

UP FRONT

Cool guy

Bryan’s work ethic has roots dating to his childhood in Texas

By MERYL FISHLER

E

rik Bryan’s work ethic started at a young age when roofing companies in his Texas hometown were fighting over him because he was the hardest worker they had ever met. Now, Bryan is owner of Precision Air and Heating, one of the largest HVAC, plumbing and insulation companies in the Valley.

What was your first job?

My first job was when I was 12 years old, roofing for some contractors from our church between school years. I was pretty much a grunt. I ran around and picked up trash and stuff like that.

n the clock Addressing longer workweeks for lawyers and other legal professionals

In interviews conducted by Robert Half with 350 lawyers from some of the United States’ largest law firms and corporations, one common concern was the amount of time being spent on the job.

With no end in sight to billable hours, experts say employers should explore thoughtful strategies for keeping legal professionals happy, healthy and productive to improve retention rates.

50+ hour workweeks: the new norm

Lawyers list greatest sources of workplace stress

Lawyers log an average of

Billable expectations and long hours

50 hours each week

What lessons did you learn from that job?

Meeting client expectations

Being able to cement a good work ethic at an early age set a really good staple for me to be a driver and a pusher.

What was your first job in your current industry?

I was an HVAC apprentice at Fort McDowell Casino. Some of the responsibilities with that were cleaning the cooling towers and making sure all the parts of the casino were at temperature.

It was really a boring job, honestly.

30%

More than

one-third (37%) of lawyers work 55 + hours each week

If you had to do something else, what would you choose?

I would be a high school football coach. Since the time my son could walk, I was very involved with coaching his football teams and being involved in sports. Coaching kids, being around them, being a mentor to them at an age when you can really make an impact is a lot of fun for me.

Demanding or high-stress cases

14%

Managing Stress

What has been your biggest challenge?

The biggest challenge we have today is instilling the kind of work ethic that I have with the newer generation. The new generation of technicians is not as face-to-face as I was brought up. They are more into that digital stuff. The way we overcome that is through constant training, reminding them to look people in the face and to shake people’s hands.

34% %

52

The majority, %, have seen their hours increase over the last five years.

Clearly communicate project assignments and requirements to limit extra work caused by confusion.

Consider tapping into the talent pool of temporary legal professionals.

Take advantage of law office technology such as the latest client and case management software.

Revising the definition of success

PHOTO BY SHAVON ROSE, AZ BIG MEDIA

ERIK BRYAN: “One of the reasons why I got out of the industrial aspect

(of the HVAC industry) is because I enjoy the ability to interact with people,” said the owner of Precision Air and Heating. “That is why we have such a family atmosphere.”

6 AB | November-December 2014

According to the “Success Project Survey,” which was conducted by Strayer University to determine what success means to Americans today, researchers found that 90 percent of Americans believe that success is defined by happiness, more so than money, power or fame. Likewise, success is most often defined as attaining personal goals (67 percent), having good relationships with family and friends (66 percent), and loving what you do for a living (60 percent). Those who consider themselves to be successful are more likely to say they have a strong/supportive family network (54 percent) than they are to describe themselves as being ambitious (31 percent). Another interesting tidbit: Only 43 percent of Americans report having their “dream career.”

Thanks to you, we’re on the road to hit the 100 million dollar mark in charitable giving after this year’s Waste Management Phoenix Open. Thank you Arizona golf fans. The Thunderbirds and Thunderbirds Charities couldn’t have done it without you.

JANUARY 26 – FEBRUARY 1ST, 2015 | TPC SCOTTSDALE | WMPHOENIXOPEN.COM

AB | November-December 2014

7

UP FRONT

The eyes have it

In the age of digital overload, take steps to protect your sight

By CLAIRE COOPER

PHOTO BY ROBIN SENDELE, AZ BIG MEDIA

DR. MATTHEW PALMER: “I’d like to be able to tell my kids

that playing video games really close and other things would cause problems, but to be honest with you it doesn’t,” said the Southwestern Eye Center optometrist.

Head of the class Ever wonder where students get those giant heads to hold up at college basketball games? Build-A-Head in Phoenix is one of those places. The craze began in 2002 when a San Diego State student printed a giant Michael Jackson head to distract freethrow shooters, and it quickly became a phenomenon. Phoenix native Bryan Prize capitalized on the craze when he launched Build-A-Head in 2009. The young entrepreneur received his first big break when the Phoenix Suns ordered 2,000 heads (400 each of the starting five players) for the 2010 West Conference Finals.

Build-A-Head has expanded its market from the original big heads to include keychains, ornaments and T-shirts. To learn more about Build-A-Head, visit buildahead.com.

8 AB | November-December 2014

W

e’ve all felt it — dry, itchy eyes and a sore back after staring at a computer screen for hours on end. Spending hour after hour staring at a computer, phone, tablet or TV can leave the eyes irritated, sore and tired.

According to The Vision Council, about 70 percent of adults in America experience some sort of eye strain from digital device usage. Everything from posture to screen brightness to time spent in front of a computer can cause eye strain from digital devices, according to Dr. Matthew Palmer, an optometrist at Southwestern Eye Center.

Symptoms of digital eye strain include dry eyes, itchy feeling, trouble focusing and eye fatigue; but digital eye strain can go beyond just the eyes. Neck and back soreness and headaches can be caused by improper desk positioning and hunching to stare at a screen.

“The trouble with all LCD screens or digital monitors is that your eyes can’t focus exactly at the plane of the monitor,” Palmer said. "They kind of spasm. They don’t know where to focus, so they just keep moving back and forth.”

To ease the risk of digital eye strain, Palmer recommends the following: • In an office, make sure the top of the monitor or screen lines up with the line of sight, with the screen about an arm’s length away, and knees and arms at almost 90-degree angles.

• Lighting is also important. In an office, having soft to medium overhead illumination and having a window to the side of a workplace can make a big difference. In the home, make sure the screen isn’t too bright or too dim and have some lighting in the room besides a TV or computer screen.

The 20/20 rule states that every 20 minutes, the eyes should be taken off the screen for 20 seconds and allowed to refocus on something that is not digital.

“When your eyes hurt, listen to them,” Palmer said. “If they are bothering you at the end of the day, we may need to make some adjustments.”

AB | November-December 2014

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UP FRONT

A winning SMILE Despite autism,

entrepreneur builds booming baking business

I

By MICHAEL GOSSIE

PHOTO BY SHAVON ROSE, AZ BIG MEDIA

SUCCESS STORY: Prior to launching SMILE Biscotti, Matt Resnik and his parents, Rob and Denise, participated in the Southwest Autism Research & Resource Center’s Rising Entrepreneurs program. The program helps participants develop and maintain a home-based baking business.

Valley CFOs share hiring outlook Local companies are looking to hire and are poised for growth, but findings from the Phoenix Professional Employment Forecast from Robert Half also suggest hiring will be difficult. While it's an increasingly challenging market for employers, research shows the outlook continues to improve for job seekers. Key findings of the forecast include: • 15 percent of Phoenix CFOs expect their companies to create new professional-level positions in the next six months and another 72 percent said they will hire for roles that become vacant.

• 68 percent of employers report challenges finding highly skilled job candidates.

• 43 percent of respondents said they’re more willing to negotiate salary with new hires than they were 12 months ago.

t’s a story that's been written many times: Young entrepreneur uses an old family recipe to launch a successful business.

But this success story comes with a twist. Matt Resnik, a 23-year-old man with autism, is using his family’s biscotti recipe to build a bridge to independence.

“Matt loves music and one of his favorite songs is ‘Hey Jude,’ by the Beatles,” said Denise Resnik, Matt’s mother.

“There’s the line in there that says, ‘Take a sad song and make it better.’ What Matt is doing with the biscotti is taking a challenging circumstance and making it better.”

Not only is Resnik making the most of his challenging circumstances, he’s turning SMILE Biscotti — the company name is an acronym for Supporting Matt’s Independent Living Enterprise — into a business success. He started off by selling his biscotti to friends and family members, then on Facebook. Now, he’s taken the business to the next level.

Bruce Mosby, president of Mosby and Company, Inc., recently began selling Matt’s SMILE Biscotti in his two Peet’s Coffee & Tea licensed stores, located at Phoenix Sky Harbor International Airport’s Terminal 4. Selling for a little more than a month, the biscotti is already a top-selling item.

“We believe in fostering a culture of prosperity, where we create exciting careers for our people, and thriving local communities,” Mosby said. “Our partnership with SMILE Biscotti is a great example of this value in action. And, its success is proof that our travelers believe in it, too.”

The collaboration with Mosby has even led to the launch of a new product, called SMILE Bites, a miniature version of the bigger biscotti snacks. Mosby suggested the product after noting the popularity of the small samples he gave away.

“When Matt was diagnosed 21 years ago at the age of 2, we were told to love him, accept him and plan to institutionalize him because there wasn’t hope for kids with autism,” Denise Resnik said. “To think that today Matt is an entrepreneur and creating a product that people like has exceeded our dreams for what Matt could do. It has given us all hope.”

Phoenix momtrepreneur sticks the competition Phoenix-based Box Play for Kids was named a finalist in Martha Stewart’s nationwide “American Made” contest, which recognizes local, handmade innovators. Inspired by her 2-year-old daughter’s love of stickers and penchant for playing with cardboard boxes and empty paper towel rolls, Phoenix mom Janette Harwell had an “aha” moment that led the long-time graphic designer to develop inexpensive stickers that can be creatively applied to common 10 AB | November-December 2014

household items that would otherwise be thrown away or recycled, magically repurposing them into new toys that encourage learning.

The kid- and eco-friendly stickers transform cereal boxes, egg cartons and toilet paper rolls into record players, pianos, fire trucks, cameras, bowling pins and binoculars. Check them out at boxplayforkids.com.

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11

CEO Embracing change

Constant evolution helps Patterson achieve success in the banking industry By MICHAEL GOSSIE

J

im Patterson has been the market CEO for UMB Bank since 2009, which means he is responsible for the collective businesses that the financial institution engages in within Arizona. UMB has two primary lines of business in Arizona — commercial banking and wealth management.

Are there lessons you hope the banking industry learned from the economic downturn?

We’ve all heard a lot about the mortgage industry and other defaults during the recession. Understanding your borrower’s paying capacity, regardless of the loan type, is one thing that got lost in the fever to make loans.

As we slowly recover economically, how has your industry changed?

PHOTO BY LILLIAN REID, AZ BIG MEDIA

JIM PATTERSON: “If I wasn’t doing what I was doing now, I’d like to be a chef,” said the market CEO for UMB Bank. “I’d like to go to culinary school. There is a creativity to cooking, and I like to think of myself as a creative banker.”

What trends are changing your industry?

Technology certainly has the biggest impact. We are seeing more customers who want to do business remotely with their iPhones and other devices. It takes away the need to have branches on every corner, which used to be a measure of your customer availability.

What qualities do you have that help you lead UMB? I built a great team. I hope I have the skill to attract great talent. I am collaborative, and I’m a guy with an open door.

I walk around and talk with people and listen to what they have to say so I know what roadblocks there may be and what challenges people have, and it’s my job to do my best to remove those obstacles.

There’s more regulation. There’s more regulation coming, and there is an expense to regulation. There is also a lot of competition. In an economy where growth is metered, there aren’t a lot of new loan demands. So one of our biggest challenges is, even though we’ve grown and added new customers year over year, many of them aren’t borrowing what we’ve made available to them because their businesses aren’t growing at the rate we once enjoyed. So we are an industry with less leverage, tighter capital requirements and more regulation in place.

What qualities do you think an effective CEO needs to possess?

What advice would you give someone entering the banking industry?

What has been your biggest professional challenge?

Understand credit risk, which is a big part of the industry regardless of the product. You have to be motivated to accept and embrace change and technology. You have to be a risk manager and not a risk avoider. Don’t be afraid to grow and compete. There is a lot of competition in the banking industry and you can resolve that you’re never going to win or you can resolve that you’re going to be a winner.

12 AB | November-December 2014

They need to surround themselves with talented people.

They should be an idea harvester. They need to consider diversity in their decision making. You have to want to be a winner to be an effective CEO.

Implementing change within a group of people who didn’t really want to be changed. I’m not sure if I’ve ever done it perfectly, but I’ve come to learn that you give everyone a change, encourage change and point out why change is necessary. If there are those whodon’t want to embrace change or don’t want to be on the bus, you help them get off the bus.

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AB | November-December 2014

13

real estate

Extra

credit

Changes to FICO credit-score calculations could boost residential real estate industry

By MICHAEL GOSSIE

A

change in how the most widely used credit score in the U.S. is tallied will likely make it easier for thousands of Arizonans to get mortgage loans.

Fair Isaac Corp. announced that it will stop including in its FICO credit-score calculations any record of a consumer failing to pay a bill if the bill has been paid or settled with a collection agency. The company also will give less weight to unpaid medical bills that are with a collection agency.

“The lending industry has been very cautious since all the problems (that led to the recession),” said Ben Burgoon, a Realtor at HomeSmart. “This is a signal to the lenders that this is the direction the government wants them to move in, so that’s a positive thing.”

The moves follow months of discussions with lenders and the Consumer Financial Protection Bureau aimed at boosting lending without creating more credit risk. Since the recession, many lenders have approved only the best borrowers, usually those with few or no blemishes on their credit report.

The lower weight given to unpaid medical debt could increase some affected borrowers’ FICO scores by 25 points, which experts said could change the outcome of a loan application.

“These changes are going to help the borrower who is on the verge of getting into a home, but because they ran into an issue with collections — even though they paid them off — they are still having some lingering issues,” said Eric Murrietta, senior mortgage consultant and branch manager for Homeowners Financial Group. “With these changes, that borrower will be able to remove those barriers faster.”

To get a sense of how many people might be impacted by the changes in FICO reporting, consider these statistics: • The number of U.S. consumers struggling with medical debt has been surging. As of 2012, 41 percent of U.S. adults, or 75 million people, had trouble paying medical bills, up from 58 million in 2005, according to a report released last year by the Commonwealth Fund.

• As of July, about 64.3 million consumers in the U.S. had a medical collection on their credit report, according to data from credit bureau Experian. And of the 106.5 million consumers with a collection on their report, 9.4 million had no balance—and won’t be penalized under the new credit-score system.

Under the current system, collections can impact credit scores as much as foreclosures and bankruptcies do. But the infractions are often small. Borrowers can be on time paying their debts, for example, but their credit can be destroyed by an unexpected medical emergency. Collections stay on credit reports for as long as seven years, even if a borrower has paid off that balance and remained up-to-date on other debts.

While the changes are a positive step for the residential real estate market, Murrietta said it will take time for the industry to feel the impact.

“Eventually, this is going to help people who are on the cusp of being able to get a home,” Burgoon said. “I think regulators overreacted and became too cautious after the recession, now they are going back the other way. Young people are postponing buying houses and we need to get them back in the market, so this is a very important step for my industry. If we want economy to improve, we need people to buy houses.”

Ben Burgoon 14 AB | November-December 2014

Eric Murrietta

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Aerospace & Defense Commercial & Residential Service Contractors Food & Beverage (non-hospitality) Healthcare Support Services Software/Data Support

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5402 E. Lincoln Dr., Scottsdale, AZ 85253 Dinner & Awards Reception

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AB | November-December 2014

15

HEAlthcare

From selfie to surgery

Social media obsession drives increase in cosmetic procedures By STEPHANIE ROMERO

S

napping selfies and social media have changed life as we know it.

Now, it’s changing the cosmetic surgery industry as we know it.

“Social media is causing people to take a close-up look at themselves,” said Pablo Prichard, M.D., senior partner at Advanced Aesthetic Associates and chief of plastic surgery at John C. Lincoln Hospital. “I’ve seen a trend of younger and younger patients over the last five years and a lot of that can be attributed to the impact of social media.”

Prichard said young people who are looking to raise their profile on imagebased platforms like Instagram and Snapchat are coming in primarily for rhinoplasty, chin augmentation, lip augmentation and breast augmentation.

“People come in and will manipulate their facial features with smartphone applications and will actually come in with images of how they would like to look,” said Dr. Daniel Shapiro of Shapiro Aesthetic Plastic Surgery and Skin Klinic in Scottsdale.

Shapiro said social media, LinkedIn and dating websites make it difficult to escape viewing a steady stream of images of yourself, which makes it easier to analyze flaws and imperfections. As a result, Shapiro has seen a 15 percent increase in patients because of selfie obsession.

“During the Recession, I saw a lot of people who were laid off and came in to invest in their appearance,” Shapiro said. “Now, people going through horrible divorces see themselves in selfies, see how much older they look and all of a sudden they have to be out there (and want to improve their appearance).”

After cosmetic surgery, Shapiro has seen many patients find significant others “pretty quickly” on sites like match.com and eHarmony. Even with those successes, Shapiro said the public needs to put things into perspective and avoid becoming obsessed with selfies.

“I think the obsession with social media is here to stay,” Shapiro said.

“And I think it’s going to get even more and more popular.”

16 AB | November-December 2014

Trendsetters • Phoenix Children’s Hospital formed the Chan Soon-Shiong Children’s Precision Medicine Institute, which will apply stateof-the-art genomic and proteomic technology to identify precision diagnoses, treatments and cures for young patients facing serious illnesses. “Our goal is to bring genomics research to the forefront of pediatrics,” said Robert L. Meyer, president and CEO of PCH. • Radiant Research/Clinical Research Advantage completed enrollment for the clinical trial of an investigational adult hepatitis B vaccine.

This is the first time one clinical trial site management organization has been exclusively awarded a study that requires the enrollment of more than 8,000 patients.

• Banner Health was listed as a 2014 “Top 10 BOLD” healthcare organization by the National Center for Healthcare Leadership.

“BOLD” stands for Best Organizations for Leadership Development.

• The first dental urgent care business — OnCall Dental Urgent Care — has three locations planned for the Valley. The goal of the new healthcare concept is to reduce the skyrocketing number of dental emergencies being seen in emergency rooms and urgent care centers.

• The first surgery in the Valley using the new da Vinci Xi robotic surgical system was performed at Abrazo Health’s West Valley Hospital. The new technology provides advanced robotic technology including highdefinition, 3-D visualization. It also allows for enhanced dexterity and greater precision and control for the surgeon.

• Following its acquisition of Partners Rx, Magellan Health opened its new corporate headquarters in Scottsdale, relocating from Connecticut. Magellan Rx Management and NIA Magellan, which offers diagnostic imaging management services, also have offices in Scottsdale.

2014

Help us honor the extraordinary people who dedicate their lives to serving the men, women and children across Arizona.

We are currently seeking nominations for our 8th Annual Healthcare Leadership Awards.

Deserving candidates can be nominated in one or more of the following categories: • • • • • • • • • • • •

Hospital Executive Medical Company Medical Center or Hospital Medical Research Company Researcher Bioscience Company Healthcare Advocate Physician Insurance Provider Legal Advocate Community Outreach Lifetime Achievement

For sponsorship opportunities, call (602) 277-6045.

To nominate someone in the healthcare industry, visit azBIGmedia.com.

Nominations close December 29, 2014.

AB | November-December 2014

17

30 YEARS OF EXCELLENCE

HEAlthcare

re-in

Master of

18 AB | November-December 2014

vention

Banner’s CEO leads healthcare organization’s growth in an ever-changing industry

a

By MICHAEL GOSSIE

round the first of the year, Phoenix-based Banner Health is expected to close on a nearly $1 billion deal to acquire the University of Arizona Health Network and its subsidiaries. The deal will make Banner the largest private employer in the state and will pump at least $500 million in spending on capital projects into the state’s economy over the next five years. Az Business sat down with Peter Fine, Banner’s president and CEO, to talk about the impact of the acquisition and the state of the healthcare industry.

How have you been able to grow Banner through all the uncertainty in the healthcare industry?

We have a lot of smart people at Banner. There is good leadership. There is good strategic thinking. There is great accountability. There is great discipline. There is great focus. It’s an organization that plans the work and works the plan.

How have you been able to instill the discipline needed for growth?

It’s a leadership culture. It’s an organization that strives to achieve, decides what it needs to get it done, throws a lot of resources at it to get it done and has leaders who feel accomplished when they achieve.

Banner bought Casa Grande Medical Center last year when it was facing major financial issues. How were you able to turn it around so quickly?

PETER FINE: “We decided that our future success was going to be our ability to find, develop and retain talent,” said Banner Health’s president and CEO. “Talent management is a real serious business for us and it goes deep into the organization.”

PHOTO BY SHAVON ROSE, AZ BIG MEDIA

In this day and age of healthcare, there are a lot of pressures on healthcare organizations.

Pressures are caused by a highly complicated environment. Things are very ambiguous and it’s not always clear what to do. When you’re trying to respond to that kind of environment in an industry that’s trying to re-invent itself, that puts enormous pressure on individual organizations to maintain financial stability, high clinical quality and have the resources

needed to invest in those things needed to re-invent yourself. Banner is able to spread fixed overhead over a big base. In a situation where an industry is re-inventing itself, you have to make investments — financial investments, people investments, resources, capital investments — and that becomes hard to do when it’s an industry that’s having its reimbursement environment restricted. So it becomes even more important to find ways to spread that fixed overhead investment over a big base to bring down your costs for services.

Casa Grande recognized the reality of today’s world — and its position in today’s world — and believed that working with Banner would provide advantages for the community by creating a more stable environment.

How does that business relationship impact patient care?

We have a care model that we like to put in place. We have an electronic environment that has been very beneficial in improving outcomes. Our ability to provide capabilities that some of the more rural hospitals could never have on their own leads to an enhanced clinical environment.

How is consolidation helping the healthcare industry?

Consolidation is doing multiple things.

1) It’s letting organizations grow and spread fixed overhead over a big base. 2) It’s allowing organizations to make investments that they might not otherwise be able to make because it can bring financial stability. 3) It allows us to get into new ways of providing business. The Banner Health Network was created to allow us to get into value-based care and population health management. If we didn’t have all the infrastructure of Banner Health, it would be impossible to provide that capability. It offers new options to the public. It offers new options to businesses so they can contract for services and bring down their cost-per-unit AB | November-December 2014

19

HEAlthcare of service because it’s based on our ability to manage care. At the end of the day, it’s going to be very hard to get a whole lot more improvement on the acquisition of product to bring down your costs. The next great effort to reduce the cost of healthcare is to manage care better, which means you have to look at the cost of care and decide what is really necessary and where you can reduce the use of services — especially for chronic care patients. If you coordinate care better, you’re going to use services better, as opposed to an environment where there is no coordination, duplication of services, duplication of testing and there is more cost associated with that. So this whole issue of providing people with the right care at the right time at the right place is really what the coordination of care is all about, what value-based care is all about and what risk assumption of care is all about. From our perspective, if you can organize yourself structurally to do that, you have an opportunity to be far more competitive, especially with organizations that are putting more and more of the costs onto the consumer through co-payments, deductibles and reductions of coverage.

Therefore, we are moving into a consumer world where people are going to make decisions on how they purchase healthcare far differently than they’ve made those decisions before. It’s going to be based on where they can get the best value for the dollar that they’re spending.

What do you expect from Round Two of healthcare exchange enrollment?

Some of the insurers provided an unsustainable price for the product they were trying to provide, so I think some of those prices are going to go up. I think there will be continued growth in the exchanges, partly because I think employers are going to start making different decisions on their coverage.

What’s been the impact of the Medicaid expansion?

I can tell you I think it’s been a boon for the state. We’ve seen a significant impact. It’s had its desired effect. We’ve had a decrease of uninsured and an increase of Medicaid-insured patients, as well as an increase of people on exchanges. But remember, a population like Medicaid pays only 63 cents or 65 cents on the dollar of full cost. That means we are still crosssubsidizing off of some other category. But it is taking that category where there was no reimbursement at all and making that category smaller. The best thing is that the part paid for by the federal government is only going to go up. Arizona's obligation is going to drop from 17 percent down to 10 percent.

to invest significantly into this world of research as it pertains to the clinical environment. You’re going to see us make more investment in the clinical research side. The folks at UA love the idea of having access to the totality of Banner’s database, which can advance the research cause of the medical school.

How does research fit into your mission and goals for Banner Health?

Research has not been a priority in the past. It has been driven mostly by specific physician interest. When we acquired the Sun Health system in 2008, we acquired the Sun Health Research Institute, so that pushed some of our thinking.

Clearly, our Alzheimer’s Institute has been a major area of focus. With this new relationship, I think you’re going to see a growing effort to be more involved in research, but specifically clinical research to improve patient outcomes and devise strategies to improve population health management.

Which of Banner Health’s accomplishments give you the most pride?

I came to Banner 14 months after the creation of the organization. (Samaritan Health and Lutheran Health systems merged in 1999 to create Banner). Part of the job when I came was respecting history, but not being controlled by it. I’m not a retrospective thinker, I’m a prospective thinker. If I had to say what I’m most proud of, it’s that we’ve been able to get Banner to look to the future, to not hold onto its historical past, recognize that this is an industry in turmoil that’s being re-invented and get people to focus on where we are going.

How did you make that happen?

Thirteen years ago, we created “Banner’s 2020 Vision,” which has been Banner’s guide since that period of time. It’s a 20-year-game plan to re-invent the organization. Some would say, “That’s really bold. You’re going to produce a 20-year game plan to direct your organization for that long a period of time?”

We did and it has been a guiding reference tool for us for all the things we do — for strategies that we have, for tactics that we implement, the way we focus people, the way we pay people.

It has been an overriding influence on the company’s direction and approach for dealing with an industry in turmoil. Without this guide, Banner could have been an organization that fell off the cliff. Instead of that happening, we’ve been able to bring together two cultures and get them to focus on the future and it’s been one of Banner’s hallmark successes.

How do you hope the acquisition of the University of Arizona Health Network will impact business?

It’s a big acquisition and a complicated acquisition. Part of the goal is to help stabilize an academic environment, which is beneficial to the state, but another part of the goal is growing Banner’s presence in other markets and build our statewide presence for various contracting opportunities later on. It has the potential to be highly beneficial and we will be the primary teaching relationship for the two medical schools. We think we can help stabilize some of the issues around academic medicine and the clinical environment surrounding academic medicine.

For us, it links us to a research and academic environment that we think will enhance the work that we do.

How do you hope the purchase of the University of Arizona Health Network will impact the cutting-edge research already being done at Banner Health?

It’s going to grow the research base of Banner. Today, Alzheimer’s is the biggest focus for us from a research perspective. As we move into a more direct environment with the medical schools, we are going to find other opportunities

20 AB | November-December 2014

Banner's 2020 Vision "Our steps to the Future" Industry Leadership 2016 - 2020 Innovation 2011 - 2015 Growth 2007 - 2010

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21

MARKETING Is your business ready for the national media

spotlight?

T

he Wall Street Journal.

The New York Times. “The Today Show.” These are considered the “dream list” of media outlets by most businesses, but seeking national media coverage can quickly become a curse instead of a blessing if you’re not incredibly strategic in your approach. Before seeking the national spotlight, there are several important factors business owners must consider.

» Prepare for the long term. A professional PR campaign

Jackie Wright Marketing

» Are you ready to compete

with the big guys? You really have to think about what makes your brand special and sets your product or service apart from your competition before going big.

What is your brand’s story, hook or angle? Can you present it in a quick but clear fashion that will grab the media’s attention without wasting their time? Is it of interest to the masses, or just a niche product that would be better suited to promote through specialized, industry or topic-specific media outlets? If there are major competitors in your industry that already have national attention, define what makes you different and better before reaching out to national media outlets.

» Seek the help of a skilled PR professional. Perhaps you’re

a savvy business owner and have done well getting local media coverage on your own. While this is not impossible with national media contacts, if you truly want to see consistent results, you should consider retaining the services of a good public relations professional. PR experts have solid relationships with all levels of media and understand how to provide your business with the messaging and press kit materials that get results.

Use them to your advantage to ensure you are properly prepared to speak to media outlets using clear, concise language and that you have all the essential tools that national reporters are looking for.

22 AB | November-December 2014

that is focusing on national media coverage can be expensive. Depending upon your goals and industry, you should plan on committing to a campaign for a minimum of six months and dedicating at least $5,000-$10,000 per month to cover the costs. It is also important to remember that unless you have a breaking news story, national media coverage is going to take some time to secure. Always look at PR as an ongoing brand and awareness building campaign versus something that is going to make you rich overnight.

» Are you ready for the masses? Once your product or service

gets national attention, you will have national demand. If everything goes according to plan, you’ll have an entirely new and expanded customer base in a short amount of time, so make sure you are prepared to serve these new clients without sacrificing the level of quality you are currently providing. Plan for additional costs associated with inventory, shipping, new locations, travel requirements or hiring additional employees in order to keep up with the demand for your business.

While seeing your company’s name in the national spotlight can be alluring, extensive planning and proper execution are essential to having a successful national media relations campaign. Work with your PR team to craft a cohesive strategy and polish up your PR tools in order to prevent your headline from turning into a punchline.

Jackie Wright is the president and owner of Rainmaker Integrated, a Scottsdale-based public relations and marketing firm. With more than 17 years of experience in the public relations and marketing industry, she currently works with a variety of businesses to help them execute their integrated marketing strategies.

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23

Arizona must act in time on its energy policy

T

he high energy use of the Arizona Technology Council’s (AZTC) membership base results in our organization placing a great emphasis on Arizona’s energy mix. Energy generation, transmission and conservation are vital to Arizona’s future. Given the gravity of current economic and environmental Steven G. Zylstra concerns, energy is continually Technology growing in importance. Cost and diversity of the energy mix is becoming a differentiator when companies are looking to either remain in state or move to Arizona.

Co-chaired by Michelle De Blasi, an attorney with Gammage & Burnham, and Chris Davey, president of EnviroMission, the Arizona Energy Consortium (AEC) is a committee of the AZTC. AEC developed the “Arizona Energy Roadmap” in 2012 as a document designed to provide direction on energy policy both within the state and regionally. Committed to its charter of being a broad-based energy sector organization, the AEC continually updates its plan with meaningful, collaborative input from all voices within the industry.

Gov. Jan Brewer also identified energy as a critical issue in her administration. Arizona’s last energy plan was written in 1990 and an updated assessment was much needed to lead the state toward a strong and sustainable energy future. After appointing a 40-member task force that included De Blasi, the governor’s office published “emPOWER Arizona: Executive Energy Assessment and Pathways,” a guide designed to help leaders make informed energy decisions so Arizona has affordable and reliable energy resources.

Members of both the AEC and the Governor’s Master Energy Plan Taskforce agreed there is a direct correlation between the cost of energy and the economic success of a state, country or province. Stable energy prices would help create more efficient operations of the electricity system, spur more incentives for private-sector innovation in energy technologies and add more incentives for consumers to purchase cleaner and more energyefficient products.

24 AB | November-December 2014

There’s also a tight connection between Arizona’s power and water supplies. Each typically has required copious amounts of the other and each is increasingly vulnerable to volatile supplies of the other. Perhaps nowhere in Arizona is the waterpower connection on display better than along the 336-mile Central Arizona Project canal, a water-conveyance system so big it takes more than half a power plant just to operate. Using less water and reducing the demand for power are two of the keys to a sustainable Arizona.

Arizona is home to many energy options. While many people don’t consider it a “coal state,” Arizona still generates 40 percent of its electricity from coal and produces more than 8,000 tons of coal a year. The Environmental Protection Agency’s more stringent regulation of carbon emissions forced our utilities with coal-fired generation plants to take a hard look at what the future holds for their energy mix, including possibly phasing out or replacing fuel sources.

Nuclear energy is also a major force in our state. Arizona Public Service Company reported last year that the Palo Verde Nuclear Generating Station pushed out 31.9 million megawatthours of electricity, making it the largest power plant provider of electricity in the nation.

While coal and nuclear dominate Arizona’s current energy landscape, many would prefer a sunshine-fueled solar future.

Future economic development here crucially depends on energy availability in increasing quantities from sources that are dependable, safe, low cost and environmentally sound.

With the abundant sunshine as a competitive advantage, Arizona could lead the nation in solar production with an eye toward being an export leader as well.

Arizona’s energy future is now. With an extraordinary opportunity for energy development, use, policy, economic development, job creation and cultural change, we must take action. Like our forefathers who had the foresight to team up and push for the successful passage of the Central Arizona Project that created the largest aqueduct system ever constructed in the United States, we must act in time to avoid a crisis.

Steven G. Zylstra is president and CEO of the Arizona Technology Council.

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AB | November-December 2014

25

LAW

Raising the

next generation Law firms examine ways to prepare Millennials for the business of law

L

aw firms are changing. The future of the profession is in flux as newer generations and Millennials move into the workplace.

In order to stay relevant in this dynamic atmosphere, firms need to teach incoming associates and new partners the business of running a law firm, foster loyalty, offer flexibility and connect to Millennials.

When thinking about law, business operations do not necessarily come to mind. However, business skills are vital for running a law firm. Being a lawyer is an entrepreneurial endeavor, said Lauren Rikleen, president of Rikleen Institute for Strategic Leadership and author of “You Raised Us – Now Work With Us: Millennials, Career Success, and Building Strong Workplace Teams.”

Today, being an entrepreneur is part and parcel with being a successful lawyer. An ideal law firm focuses on talent management, training, growth and development, transparency in the workplace and motivation for employees, Rikleen said. Firms must invoke a sense of camaraderie among associates and partners.

In January, Fennemore Craig launched its Director’s School

26 AB | November-December 2014

By KALEIGH SHUFELDT

for all newly promoted partners. It is a year-long program that focuses on business skills, teaching law firm management and connecting Millennials to more senior team members.

“You have to look at a law firm functioning like a business as opposed to coming to work and practicing law as an attorney,” said A. Joseph Chandler, a shareholder and attorney at Fennemore Craig in Phoenix. Chandler is one of four key directors in charge of the program.

One of the goals is to make training effective and meaningful for young partners and to integrate newly promoted partners as owners and operators of the firm, Chandler said.

The program also aims to help new partners build a mentor and mentee relationship. “We are reaching down and across,” Chandler said. “The senior partners are building relationships with Millennials.”

The law practice would benefit by making sure that each partner has the ability to understand, think and work like a business owner, Chandler said. “It is looking at the long-term success of the firm by making sure that we have long range goals for the success and development of our partners.”

You have to approach operating a law firm as you would any

business, said Alison Christian, co-founder of the Ladder Down Program and shareholder at Christian, Dichter and Sluga. “It’s critical to understand the business operation of a law firm, no matter what your level is within that firm.”

Christian’s Ladder Down helps accomplish that goal. The year-long program presents monthly sessions dedicated to the three big areas of concern in the legal profession: leadership, business development and rainmaking.

New partners should not be the only ones learning business skills, experts said. It is important for associates to understand the practice and know how to think like a future owner.

“Law schools should be developing courses to help law students become more practice ready,” said Rikleen. And that encompasses the business side of practicing law.

Law schools are still teaching “Black Letter Law,” said Laurie Hodgson, director for professional development at Arizona Summit Law School. “We are always changing, always evolving, yet we haven’t changed the way law schools operate since the 1860s.”

In the spring of 2013, Arizona Summit Law School started an annual “Business of Law” seminar for attorneys who want to start their own firm or be successful within a firm.

Law schools need to shift their curriculum in order to keep up with the evolving profession, which is transforming as Millennials and technology take the forefront.

Understanding the business of law is part of a larger goal – the long-term success of the law profession.

There is a generational gap between seasoned and incoming attorneys. Millennials who enter the workplace want to have meaning and purpose, said Elizabeth Fitch, co-founder of the Ladder Down program and founding member of Righi Law Group.

Law firms today need to have a vision, Fitch said. New lawyers are “not given the big picture, they’re not shown the story. They’re not connecting what their daily grind is to the overall success and vision for the law firm.”

According to Fitch, Millennials need to have a positive relationship with the directors of a firm. They will stay at the company if they connect to their team and share common values.

It is important to have lawyers who care about the firm and its future, said Leah Freed, managing shareholder at Ogletree Deakins’ Phoenix office. In order to maintain a strong law firm, you must have strong lawyers who care enough to spend time and develop new associates.

With guidance and training, a firm will be able to integrate the newer generations into the company’s culture, Rikleen said. All partners need to embrace their new role as leaders and visionaries.

A. Joseph Chandler

Alison Christian

Elizabeth Fitch

“Lawyers by nature are more resistant to change,” said Freed, which means law firms are slower at progressing and adopting new technologies.

However, through the use of technology, law firms are striving to be more efficient and reduce overhead, Freed said.

Technology allows attorneys to connect to their clients and keep in touch throughout the day, which in turn provides flexibility within a firm.

Being able to integrate work and life is vital for newer generations. They want to have an active career while being present and involved with their family, Rikleen said. Which means flexibility is key.

In the future, Freed said she thinks there will be more opportunities for lawyers to contract or do part-time work, providing flexibility to the lawyers and the firm.

Today, males and females share in family responsibilities, so work-life balance is necessary for both.

In order to stay relevant in this dynamic atmosphere, firms need to teach incoming associates and new partners the business of running a law firm...

Ten years ago, women were grappling with that balance, learning how to draw boundaries and prioritize, said Marianne Trost, The Women Lawyer Coach. However, it is no longer a gender issue, but a generational issue.

Millennials are not going to tolerate the current structure, Fitch said. Their values are going to start putting “pressure on law firm systems and it’s going to force a positive change.”

Retaining Millennials is key to ensuring the future of the law profession. Law firms are beginning to recognize that generational differences are present. However, the profession as a whole is far from addressing these new challenges, Rikleen said.

The law profession is undergoing constant change as technology is utilized and newer generations enter the firms and move up the ranks.

“What we see today is going to be a shadow of what’s to come,” Hodgson said, though the jury is still out on what that means for the future of the law profession.

Leah Freed

Laurie Hodgson

Lauren Rikleen

Marianne Trost

AB | November-December 2014

27

Tourism Capitalizing on Arizona’s

thriving spa and wellness industry

A

rizona businesses are well positioned to capitalize on the development and growth of the spa and wellness marketplace. Once considered an amenity, the demand for spa and wellness experiences has grown exponentially over the last 10 years. This is directly tied to the enormous emphasis being placed on wellness and lifestyle programs in today’s spa environment.

Mia Mackman In a recent Travel to Wellness Tourism reader’s survey, more than 40,000 subscribers ranked Arizona No. 3 among the Top 10 perceived destinations worldwide for wellness. This is an impressive reflection of Arizona’s global reputation for extraordinary wellness and alternative health. This also highlights the exciting opportunity we have in Arizona to create cross-industry partnerships in this burgeoning market.

According to the Global Wellness Tourism Congress (GWTC) “the wellness travel industry is already a $439 billion market, expected to grow another 50 percent from 2014 through 2017.”

Global wellness plays a powerful new role in Arizona’s destination tourism and continues to considerably change the demographics of travel, leisure and hospitality markets everywhere.

Today’s clients are smart, evolving, educated and networked.

They are empowered and aware of the expansive and alternative modalities proven to yield dramatic real-life results.

It is critical for hospitality, spa, wellness and healthcare related businesses to prepare and adapt to meet the growing needs of this diverse and dynamic audience.

Market transition The industry has witnessed a substantial shift toward personal well-being, evidenced by heightened spa and wellness programming worldwide. International health assessments 28 AB | November-December 2014

have indicated a rise in diagnostic autoimmune deficiencies, obesity and chronic health issues. The call for progress and discovery is not only vital, it has become the cornerstone of the wellness market. The key to innovation in this case is to provide products and services that go beyond traditional offerings and support wellness in all of its forms: dietary, physical, medical, spiritual and emotional.

Wellness tourism is tasked to serve both an aging population and an overstressed workforce. Much like the medical, healthcare and biotechnology fields, there is a unique opportunity to educate, influence and support people in making healthier choices and living more satisfying lives. This translates directly into happier, more vibrant clients, which employees will find more rewarding to work with and engage with more deeply.

Creating experience Meaningful and oftentimes life-changing experiences can be found through the doors of spas everywhere. Today’s broad spectrum of new spa services has resulted in a new culture of spa-goers, international wellness travelers and communities attentive to improving their health. The spa and wellness market has not only grown into a highly lucrative market, but an environment creating invaluable new connections, critical long-lasting relationships and tangible benefits.

One of the challenges in creating significant experiences is to maintain a balance between niche programs with limited market penetration and generalized, conventional offerings that lack a unique identity or specific draw. Remarkable products and services enhance profitability, support stronger program streaming and ignite better customer retention.

Moreover, creating an experience that is deeply satisfying will always drive higher sales volume and customer loyalty.

Mia Mackman is the founder and president of the Arizona Spa & Wellness Association, a spa and wellness business consultant and the hospitality brand manager for Jacob Tyler Creative Group Agency.

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29

6/19/13 1:42 PM

Dining Perfect blend

Central Bistro

Central Bistro creates dining delight utilizing modern French and Italian menu items By MICHAEL GOSSIE

Where: 3160 E. Camelback Rd., Phoenix Contact: 480-646-8560 Online: centralbistroaz.com

They had us at “Drunk Bread.”

It’s not often that a long-time favorite can be replaced with a newer, more innovative model and turn out to be even more engaging, but Central Bistro has accomplished the feat.

Nestled into the former location of Zen 32, which called the hot spot on the northwest corner of Camelback Road and 32nd Street home for more than 15 years, Central Bistro has mixed together modern Italian and French with wood-fired cuisine to quickly build a following all its own.

Central Bistro is a true bistro setting with an ample menu that offers something for everyone. It also has a selection of more than 350 hand-selected wines, farm-to-bar cocktails and craft beer. It’s a modern, straightforward, energetic restaurant that features a menu of winning dishes from top to bottom.

That makes sense because everything is made from scratch daily.

At lunch, freshly made soups, salads and sandwiches take precedence. As the day transitions to evening, hearty flavors reign with handcrafted pastas, brick-oven pizzas, wood-grilled meats and veggies.

Which brings us back to the Drunk Bread, the amazing appetizer that kicked off the meal during a recent visit. Made with swiss fondue, white wine and crusty bread topped with prosciutto, the decadent indulgence that defines Drunk Bread made us only want to do one thing: Order a second helping.

But we showed restraint and decided to try other items on the menu and each one topped the preceding dish. Here is a quick recap of recommendations for dinner:

PROVIDED PHOTOs

CENTRAL BISTRO: French and Italian fare comes to life using ingredients from local purveyors and farmers and all items are made from scratch daily.

30 AB | November-December 2014

• The Salumeria Pizza, made with red sauce, mozzarella,

house made sausage, Italian cured meats and Sicilian oregano is easily one of the best wood-fired pizzas in the Valley. It’s priced at $15.

• The cabernet reduction on the filet — which is served with mashed potatoes, asparagus and mushrooms, with an option to add either foie gras ($8) or butter poached lump crab ($9) — is so perfect that my mouth is watering onto the keyboard at this moment as I reflect on the memory.

It’s priced at $35.

• The Ruby Red Trout, served with sautéed summer squash, pear tomatoes, fresh herbs and lemon caper vinaigrette, is as mouth-watering a seafood dish as you will find in Phoenix. It’s priced at $24.

• The Central Mac and Cheese utilizes a house blend of cheeses topped with herb bread crumbs. As we learned from the Drunk Bread, the staff at Central Bistro knows how to work with cheeses. Enough said. The Central Mac and Cheese is a bargain at $16.

Beyond an amazing dinner, Central Bistro boasts a muchacclaimed happy hour featuring $1 oysters that would make my boys in Boston envious; and an incredible brunch with bottomless mimosas made with fresh-squeezed orange juice. If you go for brunch, the Stuffed French Toast is a must-try menu item.

From the decor — lots of natural light and open space — to the desserts, Central Bistro is a taste-tantalizing delight. Where else can you get drunk on bread?

DRUNK BREAD: Made with swiss STUFFED FRENCH TOAST: Brioche fondue, white wine and crusty bread brimming with sweet cream topped with prosciutto.

Mascarpone, topped with bananas and drizzled in peanut butter maple syrup.

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35

One size

hurts all

Experts say changes must be made to Dodd-Frank to keep banking industry healthy and competitive

By MICHAEL GOSSIE

36 AB | November-December 2014

t

he Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is the most sweeping financial regulatory legislation Congress has passed since the Great Depression. It was supposed to clean up and stabilize the financial industry.

Experts say it’s had the opposite effect.

“Dodd-Frank has changed the economics of the banking business adversely, particularly for small to mid-size banks (less than $10 billion in assets),” says James Kaplan, a member of Quarles & Brady’s Business Law Practice Group in Phoenix.

“By discouraging and outright prohibiting risk in some cases, (Dodd-Frank) cuts the supply of credit to households and businesses and has done its share in creating a perpetual slow-growth economy. (It has) discouraged residential mortgage lending, discouraged small business and real estate development lending, and in general seeks to reduce greatly the inherent risk in free enterprise activity to too great an extent.”

Here’s what else Dodd-Frank has done: A study says the new regulations have heaped more than $21.8 billion in costs and 60.7 million paperwork burden hours onto the financial industry and turned the industry into one giant guessing game, particularly for smaller banks. Experts say the regulatory burden has had the biggest adverse effect on community banks because the compliance with the regulatory standards and oversight have dramatically increased costs and has hindered the community banks’ ability to come back from the Great Recession.

“Dodd-Frank applied a one-size-fits-all solution for the banking system,” says Candace D. Wiest, president and CEO of West Valley National Bank. “While there have been some carve outs for community banks, the reality is that by and large the community banks have been forced to comply with the same regulations as the behemoth banks. The avalanche of new regulation is still growing. At WVNB, we could easily allocate $10 million per month that is a direct expense of regulatory compliance. The sad part is that the (part of the) banking system that caused the meltdown somehow has escaped much of the reform.”

AB | November-December 2014

37

Positive impact The intent of Dodd-Frank, which requires oversight from a number of federal agencies, was to hold banks more accountable in response to the worst financial crisis since the Great Depression by imposing stringent new regulations, consumer protection standards, new capital requirements and strict reporting rules on lenders.

“There are things about the Dodd-Frank Act that needed to happen to reign in some of the excesses of the financial industry,” says Keith Maio, president and CEO of National Bank of Arizona.

“The increased capital standards will mean that next time the economy experiences a severe recession, there will be fewer bank failures,” Kaplan says. “(Dodd-Frank) also created the Consumer Financial Protection Bureau, which if it would re-orient its approach, could become a significant force for protecting consumers who need the help. And (Dodd-Frank) will keep some banks out of speculative businesses in which they have little expertise, which does enhance the safety and soundness of the entire system.”

Dodd-Frank has also overhauled mortgage lending and affected the availability of credit. But with roughly 20 percent of the law still left to implement, analysts say the true impact of the legislation may not be understood for years. But there is one area where the impact is clear.

“Dodd-Frank was really intended to focus on the larger banks in the country, the ones that are systemically influential financial institutions, the ones that — if they got into trouble again — could have a negative impact on not just the commercial banks in this country, but globally,” says Ed Zito, president of Alliance Bank of Arizona.

“Unfortunately, the mindset that underlies Dodd-Frank in terms of the regulatory burden has really flowed down unfairly to smaller community banks.”

Experts say the fixed costs of complying with DoddFrank are having the unintended consequence of benefiting the massive banks that can absorb the costs through volume. The institutions that are benefitting may be the same ones that helped cause the financial crisis that created the need for Dodd-Frank in the first place. That doesn’t mean Dodd-Frank isn’t hurting big banks’ bottom line, too.

“In passing the ‘Volcker Rule,’ (Dodd-Frank) has reduced the ability of our mega banks to take part, and thus make significant profits in, formerly permissible areas, like proprietary trading of securities and other assets, merchant banking and hedge fund sponsorship,” Kaplan said.

Big get bigger One of the consequences of the added regulatory cost on smaller banks has been consolidation.

“The number of banks in Arizona has shrunk dramatically,” Zito says. “It’s not all due to failures. It’s due to the fact that you’re now seeing mergers and acquisitions of banks where shareholders and owners have fatigue from working so hard to get through the Great Recession and not seeing a great future ahead of them independently. The same trend is happening across the country.

Zito points out that when he was in Washington, D.C., working for the U.S. Treasury Department, there were approximately 15,000 banks in the country. Today, we’re down to about 6,700.

“I sometimes refer to Dodd-Frank as the ‘community bank genocide act,’” Zito says, “just because it’s had that tough of an impact. There really should be an exemption for small banks that really have no systemic impact. Almost every community in which you find a bank, you will find a competitor, so inherently, they have to serve their community. Otherwise, they are not going to survive.”

John M. Randolph, a member at Sherman & Howard in Phoenix, says that while Dodd-Frank’s premise that objective criteria for mortgage loan underwriting is essential to prevent the abuses that led to the 2008 financial crisis, the imposition of rigid objective criteria contained in the Qualified Mortgage Rules is contrary to the relationship banking and soft criteria that community banks have successfully operated under for years.

“Unlike large banks that have limited knowledge of their customers and that must rely upon objective information in underwriting, community banks have historically forged long-term professional alliances with their customers and have been able to make prudent credit decisions based upon personal knowledge and community standing of the customer,” Randolf says. “The mortgage rules set forth specific parameters to meet Dodd-Frank’s requirements that do not allow any consideration for these factors. While a bank may offer non-qualified mortgages, the liability in doing so appears to be more than what most banks are willing to assume.”

The irony of the new constricted regulation is illustrated by the fact that former Federal Reserve Chairman Ben Bernanke was unable to refinance his Washington, D.C., home recently because he is now self-employed.

What’s next?

Experts say without amending Dodd-Frank, the biggest long-lasting impact of the legislation may not be on the banks themselves, but on the economy as a whole.

“At the end of the day, I think the bankers can all deal with the regulations,” Maio says. “But I don’t think we have yet seen if Dodd-Frank will be any kind of governor on

...the biggest long-lasting impact of the legislation may not be on the banks themselves, but on the economy as a whole.

38 AB | November-December 2014

“I Left to right: Cara L., Christian, Douglas L. Christian, Alison R. Christian, Gena L. Sluga, Micalann C. Pepe, Stephen M. Dichter, Jeffrey O. Hutchins, Lon H. Johnson, Jay B. Jenkins

know we’re bucking the trend,” says Managing Partner Doug Christian, “but we’re a small firm trying to stay small.” Christian, Dichter & Sluga is an eight lawyer firm focused on getting things done for its clients in Phoenix and Las Vegas. “The talent we’ve assembled allows us to emphasize quality over quantity.” Combined, Steve Dichter and Doug Christian are recognized in 6 practices areas in the 2014 edition of Arizona & New Mexico’s Best Lawyers: Commercial Litigation***, White Collar

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Insurance Law • Bad Faith Litigation • Personal Injury Litigation • White Collar Criminal Defense Business Litigation • Banking and Finance Litigation • Professional Liability Defense AB | November-December 2014

39

economic growth over the long run. Do those that passed the Act rather quickly and those that are interpreting the rules of the Act really understand what changes it might have on the banking industry, which has been the financial engine or the fuel for economic growth? We have not seen any significant economic growth since Dodd-Frank. That’s a concern I have as a banker.”

Most banking experts agree that some changes need to be made to Dodd-Frank to maintain a healthy, balanced and competitive banking system. To get there, most say DoddFrank needs to be amended to lessen the burden on smaller and community banks.

“I would also advocate reining in the power of regulators to deny banks the right to grow and expand their business, absent antitrust concerns,” Kaplan says. “These sorts of decisions on whether to grow, expand, add business lines and so forth are best made in a free enterprise system like ours by those who will primarily live with the economic consequences — the shareholders and management of banks.

Kaplan said he would also be an advocate for the creation

of a regulatory oversight authority comprised of ordinary consumers, business people and bankers (no regulators) that would review the major decisions of bank regulators on applications and regulations and regularly report to the country on the efficacy and desirability of those application decisions and regulation. “(Dodd-Frank) has affected our policies, our procedures, our disclosures, our risk profile, and our ability to offer credit,” Wiest says. “I got into this business because of a banker. I was a 26-year-old single mother with no credit and a car that wouldn’t make it through another Midwestern winter when I received a miracle in the form of an income tax refund that gave me a down payment (for a new car). I went into the Delay Bank in Norfolk, Neb., where a guy named Gib Fisher talked to me about where I worked, why I didn’t have credit, etc. He said he would think about approving the loan and get back to me. He called back within 15 minutes and said he had spoken to my boss, who said I was a hard worker with a good future, so he was approving the loan ... Today, we have limited ability to help people. It makes me sad to think about it.”

What should be changed?

Here is how experts say the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 should be changed to help the banking industry, while achieving what the legislation was intended to accomplish:

James Kaplan

Candace D. Wiest

John M. Randolph

Ed Zito

“Repeal the Volcker Rule. Lower the capital requirements for smaller banks that exhibited a lower risk profile. Re-focus the Consumer Financial Protection Bureau on substantive consumer protection rather than compliance and documentation and fear of enforcement that raises costs to consumers and discourages lending.”

“Banks like WVNB did not cause the meltdown. And if we would have failed, we would have had some very unhappy shareholders, but would not have brought down the economy of the free world. Tailor the regulations to the risk classes of banks present to the system. Let us help the people we were chartered to help.”

“In order for community banks to survive and continue to offer their traditional loan products, it will be necessary to create exemptions from the requirements of Dodd-Frank and the Qualified Mortgage Rules. Deviations from the one-size-fits-all methods of determining the ability to pay for community banks would be an important step.”

“Even as a $10 billion organization, we still think that a healthy banking system and a competitive banking system is one that needs to have the right balance struck, so we would be in favor of supporting lesser burden and amending Dodd-Frank to lighten the load on smaller and community banks.”

Partner, Quarles & Brady:

40 AB | November-December 2014

President and CEO of West Valley National Bank:

Member, Sherman & Howard:

President, Alliance Bank of Arizona:

Buildingalliances By boosting economic development, Alliance Bank of Arizona has boosted its bottom line By MICHAEL GOSSIE

ED ZITO: “We feel like we are all owners,” said the president of Alliance Bank of Arizona. “We like to preach to our newest members of the team, ‘run it like you own it.’ If you have than mentality from the get-go, that is the hallmark that has made us the largest locally owned an headquartered bank in Arizona.”

PHOTO BY SHAVON ROSE, AZ BIG MEDIA 42 AB | November-December 2014

E

Ed Zito began his financial career with the United States Treasury Department. As president of Alliance Bank of Arizona, Zito helped the financial institution cross the $10 billion mark in June, obtain a $2 billion market cap for its stock and grow into the 67th-largest publicly traded bankholding company in the country. Az Business sat down with Zito after Alliance celebrated record earnings in the second quarter to talk about the state of the banking industry.

What is Alliance doing right?

We had a record second quarter and we are very proud of that. We are just a commercial bank, so we focus on commercial business lending, commercial real estate, public finance and nonprofit organizations. As the largest locally owned and headquartered bank in Arizona, we work very hard to pitch local first, buy local and bank local. It’s a lot more blood, sweat and tears since the marketplace is much more competitive now, but we’re hitting on just about all eight cylinders. We’ve had great deposit growth, which in turn funds our loan growth, which has been strong, albeit competitive. It all came together with some great net interest margin, which is the difference between what we pay on our deposits vs. what we take in for our loans.

What sectors are driving your loan growth?

Everybody knows the Great Recession is over. The economy may not have recovered as strongly as everyone had liked, so there is some owner fatigue out there that is driving some merger and acquisition activity. Virtually all asset types or product types and our commercial real estate sector are all very strong. RED Development is one of our biggest clients and we are fortunate to be financing their Town & Country Shopping Center overhaul. Two other notable projects: We are financing Building 3 at SkySong and we are financing the acquisition of Metrocenter by the Carlyle Development Group out of New York City. We feel that economic development is truly within our DNA, so the kinds of projects we are seeing in our commercial real estate area fit within our organization’s makeup.

Both of those projects are revitalizing neighborhoods. How important is that to Alliance?

That is huge. We are a super community bank, as we like to call ourselves. We are about $10 billion in total size, so we are at the upper end of super community banks and the lower end of the regional bank category. We see the importance of reinvesting the deposit dollars we take in back into our local communities to spur job growth, re-employment and economic development. A multitude of our executive team are involved in organizations across the state promoting economic growth and development. We look at it as investing forward, as opposed to giving back. We feel very strongly in taking a leadership role in economic development because that underscores our role as the largest locally owned and headquartered bank in Arizona, but we also feel that it’s just the right thing to do.

How has the commercial real estate space changed over the last four years?

It’s dramatically different. Everybody who was in commercial real estate back in 2007 got a cold shower in 2008 and 2009.

We saw dramatic unemployment, basically no construction and negative absorption. Slowly, but surely, that’s coming back.

The beauty of the difference now is that it was a fairly narrow commercial real estate environment before the Recession. The environment now is much more broad based. It’s underscoring the point that everyone’s economic development efforts are starting to pay off because we have a much more diversified economy. So we are seeing a lot of activity in hospitality, healthcare, education, industrial development, land acquisition for future homebuilding and construction, and multi-family.

Does your record quarter signify anything regarding the economic recovery?

The banking industry in general has enjoyed the better part of three years of gradual recovery. Banking profitability is nearly at an all-time high. Bank capital is setting record level almost on a quarter-by-quarter basis because profitability is good and earnings are being retained. Fundamentally, the cooperation with the regulatory community in building a more stable and sustainable banking environment has been successful. I do think we are seeing banks marching to the beat of the regulatory drum, but also realizing that the capital base that is needed given the risks and challenges that we face daily are important to be sound, stable, prudent, enabling, but also mindful of the risks that are involved. So there is a good balance being struck right now and the earnings are reflective of that.

Will the increase in the use of mobile banking mean the end for brick-and-mortar banks?

Not really. As a commercial bank, it’s important to be close to our customers. I have a saying: When someone asks, “Where is your office?” I answer, “Wherever my customer or prospect needs it to be.” We just opened a new office at Loop 101 and Ray Road to serve the rapidly growing Southeast Valley and we are hoping to purchase a piece of land in Gilbert to build more offices. We are trying to go where the business community is growing. We already have a number of offices in Phoenix and Tucson and we will always go where our customers need us.

What are your goals for Alliance over the next five years?

We are a growth-oriented and goal-oriented organization.

We opened in 2003 and will celebrate our 12th anniversary in February. We think that in five years, we can be between $15 billion and $20 billion because of organic growth and acquisitions. That’s our goal.

AB | November-December 2014

43

44 AB | November-December 2014

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AB | November-December 2014

45

Ca$h carry and

Mobile banking creates a fundamental shift in banking industry and more changes are coming By MICHAEL GOSSIE

46 AB | November-December 2014

I

t wasn’t long ago that people looked forward to going to the bank to cash their paycheck.

Now, they just pull out their phone, take a photo of the check and the money is magically in their account.

“The way we deliver banking services to people now has really fundamentally changed,” says Keith Maio, president and CEO of National Bank of Arizona. “We thought when ATMs were built, it was fundamentally going to change branches and that everyone would use an ATM and no one would use a teller. They used ATMs, but they never stopped using the branches.”

Technology, however, may change that.

“Banking with a mobile device is keeping people from banking in a traditional way,” Maio says, “so we have to modify the way we deliver banking services.”

To understand how dramatically and dynamically mobile banking has change the landscape of the banking industry, consider the findings from these recent reports and surveys: • 90 percent of U.S. bankers expect at least a 10 percent decline in branch numbers over the next five years, with 45 percent expecting the decline to be 25 percent or more. Branch numbers have declined 9 percent in just the last three years.

• More than 50 percent of the United States’ commercial banks now offer some form of mobile banking.

• 82 percent of 18- to 25-year-olds owned a smartphone in the fourth quarter of 2013 and 61 percent of those engaged in mobile banking.

That compares with around 60 percent and 30 percent, respectively, for their parents.

• 61 percent of U.S. internet users bank online and 32 percent of U.S. adults bank using their mobile phones.

• 88.5 million Americans attempted to open an account online or with a mobile device in the past 12 months.

• 53 percent of Millennials don’t think their bank is any different from other banks; 73 percent would be more excited about a new financial services offering from Google, Amazon, Apple or PayPal than their own bank; and 33 percent believe they soon won’t need a bank at all.

“For today’s banking customers, it’s about how easy they can navigate on their mobile device,” Maio says. “That’s become their perception or paradigm of the bank. The ease of use with their mobile device is their relationship with their bank.”

AB | November-December 2014

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Changing the industry Based on a study by Forrester Research, Chase, Citibank, Bank of America and Wells Fargo lead the way relative to mobile banking functionality.

“Wells Fargo has 13.7 million active mobile banking customers as of September 2014 and it continues to be the fastest-growing channel in Wells Fargo’s history,” says Pam Conboy, Arizona lead region president for Wells Fargo.

“Increasingly, we’re seeing customers interact with us in an ‘omni’ or ‘multi-channel’ way. They want options in how they bank – whether it’s by phone, in-store, ATMs, online and mobile banking. All of these channels need to work together to provide service and convenience when, where and how they want it. Each channel remains central to our strategy of providing excellent service and meeting our customers’ financial needs.”

The most common uses of mobile banking are to check account balances and review transactions. The second most common use is to transfer money between accounts. Thirtyeight percent of mobile bankers have deposited a check in the past 12 months. The average mobile banking user accesses their account four times per month.

“Bankers are quickly adapting to changing use patterns, looking closely at their branch office locations, branch office designs and customer service staffing,” says Chuck Matthews, chairman and CEO for Valley-based WGM, a business technology company. “As fewer customers make trips to physical bank branches, some members of the banking industry are experimenting with new branch models that are a fraction of the size of traditional locations.”

In response to the exploding use of mobile banking and need for more resources devoted to technology, Matthews says banks including Wells Fargo, HSBC and Citigroup have played around with the size and features of their branches, building smaller locations or ones with fewer human tellers and more video screens. The need for the industry to evolove is only going to increase. Forrester estimates that by 2015, more than 50 million users will actively access mobile banking in the United States alone, representing a compound annual growth rate (CAGR) of more than 33 percent.

Focus on security While mobile banking growth accelerates, consumers are still concerned over security of their mobile transactions and the new wave of payments by smartphones is set to accelerate those concerns and need for hyper vigilance when it comes to protecting customers.

“We have to make sure we’re able to host the mobile experience in a safe and secure environment,” Conboy says.

“Customer privacy and security is always at the forefront of everything we do and Wells Fargo takes significant steps to protect customer information online and in our mobile apps.”

Matthews says perceptions about the lack of security and privacy of mobile banking and mobile payments are some of the main reasons cited by current non-users. Sixty-three percent of consumers who do not use mobile payments cited both security and privacy concerns. The majority of non-users consider traditional methods of banking and payments sufficient for their purposes. Overcoming these perceptions and demonstrating mobile technology advantages will be important to continued adoption of mobile banking and mobile payments.

48 AB | November-December 2014

“Those concerns may be well justified by recent events,” Matthews says. “JPMorgan said in a regulatory filing in September that the widespread data breach compromised the accounts of 76 million households and seven million small business customers who used the bank’s Chase.com and JP Morgan Online websites, as well as the Chase and J.P. Morgan mobile apps.”

More than 50 percent of the United States’ commercial banks now offer some form of mobile banking.

To further improve the security of mobile banking and payments, the SANS Institute, which specializes in information security and cybersecurity training, recommends the following: • Conduct customer education campaigns • Implement remote wipe and automatic lock-out features • Device encryption • Ensure apps don’t store customer sensitive data locally • Use only reputable sites to download apps • Ensure that apps are tested for security • Avoid jail-breaking phones • Ensure the point of sale device vulnerabilities are addressed • Ensure that software updates are being pushed to devices • Vet the security of the carrier infrastructure and services through targeted questioning • Extend current online fraud tools and controls to the mobile channel “The adoption of more secure technologies like NFC (nearfield communication) and the EMV (Europay, MasterCard and Visa) chip card may also help improve the consumer’s perception of security,” Matthews says.

While the convenience and technology of mobile banking are overwhelming, security remains the key piece.

“It’s extremely important for us to make sure our customers have confidence in us to protect their identities and confidential information and we take that very seriously,” says Ed Zito, president of Alliance Bank of Arizona. “We have a series of firewalls and filters and algorithm-based software programs that alert us to unusual transactions and protect our customers. When I travel and use my debit card, I get an instant notification on my smartphone asking if I’m in suchand-such a state and to please verify. The beauty of that is that it protects our customers and the bank. Mobile security is a big focal point for us in terms of providing our customers with the latest technology products and services, but also being mindful of the risks involved.”

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51

The future

The beauty of technology is that it’s ever-evolving and mobile banking is no different.

“We will be introducing our business mobile banking in the first quarter of 2015 as a way of further facilitating the introduction of technology in advanced products and services to our business-related customer base,” Zito says.

And in October, Apple announced availability of Apple Pay on the iPhone 6, which will likely have profound implications for mobile payments globally.

“We know our customers want and need payment options like Apple Pay and other mobile wallets as they live their increasingly digital lives,” Conboy says. “Whether it’s using virtual cards to make a payment or paying a friend directly through our mobile app, the service has to be safe, quick and convenient. If it meets those three criteria, customers are more likely to adopt it. Apple Pay is a strong offering in those areas, and we’re pleased to be involved with it.”

To pay, an Apple Pay user can hold their iPhone 6 within a centimeter or two of the contactless reader with their finger on Touch ID. Apple Pay allows users to select which debit or credit card they want to use after adding them to their Passport. Apple’s adoption of NFC and drive to push mobile payments should really help kick start the NFC ecosystem, triggering a wave of merchant upgrades of NFC terminals.

Up until this point, there hasn’t been a catalyst to encourage merchants to upgrade their infrastructure to support NFC payments. Apple’s entry into the space is a potential game changer, given the fact that Apple has also signed up several big-name merchants to accept Apple Pay, including Bloomingdales, Macy’s, Subway, Walgreens and Whole Foods.

“The initial Apple Pay functionality is limited to iPhone 6 and 6 Plus users,” Matthews says. “Apple is expected to launch the Apple Watch in early 2015. The Apple Watch will pair with the iPhone 5, iPhone 5c, iPhone 5s, iPhone 6 or iPhone 6 Plus to provide Apple Pay functionality. Those additional devices will greatly expand the reach of Apple Pay technology. Additionally, new banking partners and merchants are expected to join the Apple Pay ecosystem in the coming months. Competing payment services from Google, Merchant Current Exchange (MCX), PayPal, Samsung and others will also leverage NFC technology.”

Matthews says to watch for additional announcements in coming months.

Despite the constantly evolving technology that is forever changing the banking industry, experts say some things won’t change.

“When you still have a critical need, you’re still going to want to meet someone face to face at a bank,” Maio says, “so it’s not like the switch is going to go completely dark in all the branches and all we’re going to do is mobile. It’s always going to be a balance of both.”

ACTIVITIES CONDUCTED

BY MOBILE BANKING CUSTOMERS

Checked balance/transaction

93%

Downloaded mobile banking app 72%

Transferred money

57%

Received email alert

53%

Made a bill payment

44%

Received a text alert

43%

Located an ATM

41%

Deposited a check with a camera 38%

Person to person payment 26% Pamela Conboy

Chuck Matthews

52 AB | November-December 2014

AB | November-December 2014

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56 AB | November-December 2014

Holiday planning guide

’Tis the season for workplace parties Some tips to entertain your employees without landing in the courtroom

T

he holiday season is just around the corner and many Arizona-based businesses will be hosting office parties.

While an annual celebration is a great chance to boost Shayna Balch morale and show Law appreciation to your employees, it can also be the perfect opportunity for employees get hurt or behave inappropriately. Here are several tips business owners can follow in order to stay out of the courtroom while enjoying the eggnog.

Be mindful of all religions: When planning a seasonal party, it is important to consider all of your employees’ diversity. To label a party as being a “Christmas” or “Hanukah” party may alienate some staff. Stay away from religions references and decorations in order to have a welcoming atmosphere for employees that may not celebrate the standard religious winter holidays.

Remind employees about the rules: As with any type of company sponsored event, it is important to remind team members that normal work rules and standards still apply at holiday parties. Anti-harassment, dress code and non-disclosure rules should be reiterated before the event with a brief reminder that inappropriate conduct will not be tolerated at company functions. Gently remind employees that all company policies can be found in their employee handbook and that it is a good idea to brush up on these rules before attending an event. If your company does not have formal policies dealing with harassment, proper dress codes or company trade secrets, work to craft one before an event takes place.

Double check your insurance policies: Before you start planning your soirée, review

all of your insurance policies for alcoholrelated exclusions. You’ll also want to have an understanding of whether or not your current policy allows for you to serve alcohol on your business premises, if applicable, and what your umbrella policy is should anyone be injured while attending a corporate function. If the event is being held off site, check with the site manager to determine if their insurance policy covers any potential injuries that may occur during the event.

Help employees get home safely: Ultimately, it is the employees' responsibility to secure a designated driver after they have consumed alcohol at a business function. However, being several steps ahead and arranging for reduced cab fares or hotel room rates, or even offering to pay for cabs or hotel expenses if employees are too impaired to drive, will surely help prevent any unfortunate circumstances that can arise from driving while under the influence.

Be strategic with food and beverages: It is easy to get carried away when there is an open bar and everyone is in a festive spirit. In order to help limit excess on all levels, be smart about the food and drinks that will be provided to your employees. Plan to offer non-alcoholic beverages and stay away from liquor-laden punch that can make it difficult to gauge how much the guest is consuming. Also, strive to provide foods that are high in protein or starch and will work to fill a guest’s stomach through the course of the event.

With a little bit of planning and proper communication, everyone will be able enjoy the festivities without dreading the possibility of post-holiday courtroom blues.

Shayna Balch is a partner at Fisher & Phillips LLP. She represents employers in employment and labor litigation matters before federal and state courts as well as before administrative agencies.

She handles matters across all facets of labor and employment law.

AB | November-December 2014

57

Holiday planning guide

Get the

party started I

There is still some time to book a memorable holiday get-together for employees

t’s the most wonderful time of the year for a party.

With the economic downturn slowly starting to appear in the rearview mirror, the office holiday party might be something that slipped your mind because it hasn’t been in the budget in years past. So if you still need to place to host your happening, here are a variety of options to create a memorable holiday event for employees.

H o t el

Valley

Ho

Bar North at the Kierland Commons

With a gorgeous view of the main Kierland Commons courtyard, Bar North can host up to 60 guests reception style.

The inside dining area is perfect for cocktail parties or lavish business dinners for up to 50 people.

How to book: 480-905-3278 or email asomers@foxrc.net

Blanco Tacos+Tequila at The Biltmore Fashion Park

Blanco’s private dining has the perfect spot for your fiesta.

The private dining space is a hacienda style and comes complete with its own bar. Guest can mingle reception style up to 75, or sit down family style for up to 60 guests.

How to book: 480-905-3278 or email asomers@foxrc.net

Ba

rN

or t

ha

t th

eK

ier

la n

dC

om

mo

ns

The Clubhouse at Tonto Verde

The Clubhouse is just minutes from North Scottsdale and offers both indoor and outdoor event venues. Its experienced staff and culinary team will customize and handle every detail of your holiday party to assure that it is worry free.

How to book: 480-471-2582 or tontoverde.org

Dierks Bentley’s Whiskey Row

You will enjoy a one-of-a-kind, high-energy experience in our warm and inviting space. Guests are welcomed to savor Whiskey Row’s award-winning, made from scratch menu. Features also include: live bands and DJs, karaoke, liquor and beer tasting, personal beer taps, decorations, games and more.

How to book: 928-710-8985 or email tinapeterson@riothg.com

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The Phoenician

Fairmont Scottsdale Princess

With two 23,000 square-foot ballrooms, outdoor courtyards and three distinctive restaurants (Michael Mina’s Bourbon Steak, La Hacienda by Richard Sandoval and the new Toro Latin Restaurant opening at the TPC Scottsdale) plus The Plaza Bar in the main plaza, there are endless possibilities for holiday parties, from intimate gatherings to grand galas.

How to book: 480-585-4848 or scottsdaleprincess.com

Grimaldi’s Pizzeria Old Town

Kimpton's Hotel Pa

lomar Phoenix

With Frank Sinatra crooning in the background and the tantalizing aromas of over 100 years of pizza-making tradition in the air, Grimaldi’s combines classic pizzeria charm with a modern, stylish, loft-like atmosphere.

Grimaldi’s is an excellent cost effective way to feed large parties and intimate gatherings, alike.

How to book: 480-874-8209 or email events@ grimaldispizzeria.com

The Henry

From the large private room with industrial touches, to a private kitchen that feels like the best home chef’s kitchen, The Henry is set to accommodate 10 to 100 guests. Like any seasoned host, The Henry offers reception menus or limited coursed menus of its tried and true favorites.

How to book: 480-751-2934 or email lbyke@foxrc.net

Hotel Valley Ho

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Downtown Scottsdale’s historic icon offers fabulous fare for holiday parties and hip venues like the panoramic Sky Line Rooftop, high-tech SoHo Ballroom, and Sands, a private indoor-outdoor event space. Hotel Valley Ho has you covered, whether you’re hosting 50 guests or 500.

How to book: 480-248-2017 or hotelvalleyho.com

Kelly’s at SouthBridge

Located on Sixth Avenue in downtown Scottsdale, the 8,000-square-foot swanky pub offers traditional pub classics mixed with exceptional modern cuisine. Their private and semiprivate dining spaces and patios offer a variety of options for any event. They can accommodate groups between 10 and 300 people.

How to book: 480-393-3205 or email events@ kellysatsouthbridge

Kimpton’s Hotel Palomar Phoenix

Savor holiday fare and craft cocktails at this Downtown Phoenix boutique hotel. Choose from three different party packages to create a custom event including a holiday mixer, a festive buffet or the fare with flair package. Invite your guests to take the elevator home and spend the night while enjoying 20 percent off the best available rate when you book an event.

How to book: 480-478-1730 or email catering@hotelpalomarphoenix.com Royal Palms Resort & Spa

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Holiday planning guide North in Arcadia

North has turned a modern lens on Italian cooking.

Transport your guests to what feels like a charming Italian side street culinary gem with a patio event that seats up to 55, or can accommodate 70 guests reception style. The warm glow of the fireplace with set the mood and heaters will keep guests warm throughout the winter months.

How to book: 480-905-3278 or email asomers@foxrc.net

Octane Raceway

Octane Raceway offers the 45 mph Sodi-RTX karts, a Segway obstacle course, rock wall, video games and billiards. Octane also offers state of the art conference rooms with full A/V hookups, as well as a full kitchen and bar.

How to book: 602-302-7223

Olive & Ivy

At Olive & Ivy, discover an enticing selection of unexpected and familiar dishes in a rich, elegant, laid-back atmosphere.

For special occasions or business meetings, the restaurant offers two private dining areas and beautiful patio space accommodating a varying number of guests.

How to book: 480-905-3273 or email nlasker@foxrc.net

The Phoenician

From grand ballrooms to intimate salons to a variety of signature dining venues, The Phoenician designs elegant holiday events for gatherings of all sizes.

How to book: 480-423-2722

Royal Palms Resort & Spa

For 12-18 people, the historic resort offers a variety of venues including the Delos room at T. Cook’s, The Study at The Mix Up Bar or the architecturally rich Vernadero boardroom overlooking the lawn and reflecting pool. The resort, built in 1929 as a private mansion, has cobblestone pathways, tucked-away courtyards with fountains and an enchanting atmosphere.

How to book: 602-808-3206 or email wstark@ destinationhotels.com

SOL Mexican Cocina

Add a little Baja flavor to your holiday festivities. From sit-down, coursed meals to family style sharing or the more informal cocktail style party, SOL Mexican Cocina in Scottsdale Quarter can cater any holiday event to your needs.

Available for private events are the patio and the private dining rooms.

How to book: 480-245-6708 or email scottsdaleevents@ solcocina.com

Stand Up Live

The downtown Phoenix comedy club offers all-inclusive holiday packages to fit any budget that include show ticket, plated three-course dinner or appetizer, one top-shelf cocktail, tax, and gratuity. Stand Up Live can accommodate groups ranging from 20-500 guests with no waiting in line, waived service fees and all-inclusive pricing.

How to book: 480-467-3162 or email justine@standuplive.com

Rawhide Western Town & Steakhouse

Rawhide Western Town promises to deliver up a true western experience with 14 unique venues within town to host your private events perfectly along with multiple Wild West attractions and shops. Features include live action stunt shows, stagecoach rides and mechanical bull rides.

How to book: 480-705-2946 or email toni.mennuti@rawhide.com

Rick Bronson’s House of Comedy

Forget about Ho! Ho! Ho! and say Ha! Ha! Ha! Join Rick Bronson’s House of Comedy and make this holiday the merriest yet. They can accommodate groups of 10-300 and do it all — drink, dine and laughs. They will even pick on the boss for you!

How to book: 480-420-3553 or email az@houseofcomedy.net

The Rocket

Let the party come to you. The Rocket, the food truck brought to you by North Italia, is a 700-degree wood burning pizza oven on wheels. It’s built to turn fresh ingredients and hand-stretched dough into a piping hot pizza pie in less than eight minutes.

With five different signature pizzas, fresh salads, charcuterie and bruschetta, you can proudly cater a private party or corporate event for up to 300 people.

How to book: 480-751-2202 or email kmahoney@foxrc.net

60 AB | November-December 2014

Olive & Ivy

Dierks Bentley's Whiskey Row

FOR CONNOISSEURS OF THE WORLD’S MOST EXTRAORDINARY GEMS.

By Appointment Only 3134 EAST CAMELBACK ROAD, PHOENIX, AZ | 602.955.2055 | www.MolinaFineJewelers.com AB | November-December 2014

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Holiday planning guide Taco Guild

Taco Guild’s Key Room holds 24 people, offers full kitchen, bar and wait staff. The innovative tacos at the celebrated restaurant in North Central Phoenix were recently named by Travel + Leisure Magazine as among the best in the United States.

How to book: 602-264-4143 or tacoguild.com

Talking Stick Resort

Talking Stick Resort invites guests to end the year in style when it hosts its Fire and Ice New Year’s Eve Party on Dec. 31. Kicking off at 6:30 p.m. in the Salt River Grand Ballroom, the two-day celebration will feature an all-you-can-eat buffet, cocktail specials and live performances by the legendary Sam Moore and Boogie Knights.

How to book: 480-850-7734 or talkingstickresort.com.

Thirsty Lion Pub & Grill

Whether your group’s small or large, Thirsty Lion Pub & Grill can provide a great experience and value for any holiday event. They feature multiple options including a private event room and bar. Enjoy your choice of their 52 local, craft, import and domestic beers on draft or one of their unique specialty cocktails.

How to book: email ashelton@ceghospitality.com

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Uptown Alley

Uptown Alley has 60,000 square feet of fun for everyone including 40 lanes of state-of-the-art bowling, an upscale, casual full service restaurant, two high-energy bars, a sports theater, billiards, laser tag, over 80 video and prize games, live entertainment, private party rooms and much more.

Special packages that include game play, rock and bowl, holiday menu and laser tag are available.

How to book: email kjovic@uptownalleysurprise.com

Wrigley Mansion

The Wrigley Mansion Venue and Restaurant, a landmark building constructed between 1929 and 1931 by chewing-gum magnate William Wrigley, Jr., offers breathtaking views of the Valley and can accommodate private events ranging in size from 10 to 1,200.

How to book: 602-553-7295 or wrigleymansion.com

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Blanco Tacos+Tequila at the Biltmore Fashion Park

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CTCA’s new CEO says research will reduce fear for cancer patients

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MOST INFLUENTIAL

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ersonal experience led Matt McGuire to begin a career at Cancer Treatment Centers of America.

“I’ve lost three of my four grandparents to cancer,” said McGuire, who was named CEO of CTCA at Western Regional Medical Center in January. “I remember when I was 13 years old, my mom told my brother and I that Grandma had cancer and I could just see the fear in my mother’s eyes.”

To help ease some of that fear for patients, McGuire is leading CTCA at a time when the hospital is taking an aggressive role in cancer research. Most recently, CTCA was part of of study that found two cell surface receptors that might be responsible for the most common form of lung cancer spreading to other parts of the body.

What have been the biggest challenges of ctca’s increased focus on research?

We had to essentially build the program from the ground up.

The hiring of (Director of Clinical Research) Dr. Glen Weiss and the progress he has led has been extraordinary. We have to be more responsive to new ideas. We have 14 people now on the research team and it’s been a challenge to find those people and to learn the complexities and regularities of the pharmacy industry.

Why did you decide to add research?

The primary driver is that it brings additional hopeful options to patients. As personalized and genomic medicine takes hold as we look into the future, having the most recent targeted therapies available for our patients is so in line with our mission that we knew it was time.

What qualities does an effective ceo need to possess?

Good communication skills. A clear vision and an ability to rally people around that vision. Energy and passion. The last thing is they need to be resilient. The perseverance that is needed to adapt in this ever-changing world is absolutely fundamental. I try to put relationships front and center. I want our stakeholders to know that their voice and concerns will always be heard.

IN ARIZONA

BUSINESS Photo by SHAVON ROSE, AZ BIG MEDIA

SETTING PRIORITIES: “the founding principal of ctca is putting patients first in everything we do and being on a constant quest to bring them hope,” says ceo Matt Mcguire. “they push us to innovate.”

What are your goals as ceo of ctca?

We have to be the leader in the delivery of personalized cancer care. We are going to be the leader in how genomics medicine will change the way we administer cancer care.

With what we are starting in our research program, it’s going to be an amazing evolution about how cancer care is delivered. We have to lead in that space.

I expect that 10 years from now, because of innovations that are going to come, the cancer diagnosis won’t be nearly as fearful as it is today. It will be hopeful because people will know there are places like CTCA and other cancer care providers who can help. I liken it to how the ACL injury was a career-ending injury in sports 10 or 15 years ago. Now, you have Adrian Peterson leading the NFL in rushing after an injury that would have ended his career 10 years ago. I think we’re going to look back 10 or 15 years from now and say, “Back then, cancer used to scare people.”

NazNeeN aziz, Ph.D Senior Vice President and Chief Research Officer Phoenix Children’s Hospital

14 AB | May-June 2014

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64 AB | November-December 2014

financial executives international

2014 Recognizing professionals for outstanding performance in their roles as corporate financial stewards

CFO of the Year

letter from the president From the president of the Arizona Chapter of Financial Executives International The Arizona Chapter of the Financial Executives International (FEI) appreciates and thanks you for your interest in the 8th annual CFO of the Year Awards. FEI Arizona is presenting the CFO of the Year Awards to senior level financial professionals for outstanding performance in their roles as corporate financial leaders and stewards. The nominations and awards recognize exemplary financial management in three business sectors: public, private and nonprofit.

An independent set of carefully elected and well-qualified judges from Arizona’s business community and academia have selected winners based on their contributions to their respective organizations and their overall involvement in the Arizona business community.

FEI’s mission is to advance the success of senior level financial executives, their organizations and the profession. The FEI Arizona chapter is comprised of Phoenix Metro-area executives who represent and advocate for the interests of finance professionals of companies in all industries and all sizes within the public, private and nonprofit sectors throughout the state.

FEI Arizona serves the community by offering its members opportunities to network with their peers, stay apprised of current financial policy, standards and regulatory guidelines, continue their professional development and form valuable relationships with community leaders. We also maintain an academic awards program to encourage professional advancement of promising, finance-focused students, and offer career assistance and development to members as well as contribute to the research and advocacy activities of our national FEI organization which impact the strategic planning of the profession’s policy, standards and regulatory structure.

FEI continuously recruits new members who meet our membership criteria and who are interested in the value gained from becoming an FEI chapter member. Membership is open to CFOs, controllers, treasurers, tax executives, academic professors, and other senior-level finance professionals whose positions and company size meet FEI’s membership criteria.

Additional information may be found on the national and chapter websites, financialexecutives.org and feiaz.org.

Finally, FEI Arizona would like to thank our sponsors who have worked so closely and diligently with us to make this event a success: Az Business magazine, Deloitte, Keyser, Marsh USA, US Bank and Vaco Resources.

CFO of the Year Sponsor Representatives

Mike Green, Partner, Vaco

Blake Hardison, Broker, Keyser

Jonas McCormick, Managing Partner, Deloitte, LLP

Rachael Montoya, Vice President, US Bank - Commercial Banking

Allan Smith, Senior Vice President, Marsh USA, Inc. Media Sponsor

Cheryl Green, Publisher, AZ BIG Media

FEI Arizona Chapter officers President: Richard Skufza, EVP & CFO, Laneterralever Second Vice President: Helen Swiatek, Owner, Helen Swiatek LLC Secretary/Treasurer: Tom Wellman, Consulting, Peni Kila LLC Past President: Bret Lawson, CFO, Ipro Tech, LLC

Very truly yours,

FEI Arizona Board members

Richard Skufza President FEI Arizona 66 AB | November-December 2014

Bret Lawson Chairman CFO of the Year Committee

Tony Astorga, Retired SVP & CFO, Blue Cross Blue Shield of AZ David Boden, CFO, Snell & Wilmer Gil Christopher, Managing Partner, Webster Wilkinson Michelle Hoffman, CFO, Real Time Companies Daniel Hutto, RVP of Finance, Cox Communications Adam Miller, CFO, Barron Lighting Group Brent Nelson, EVP & CFO, CopperPoint Mutual Insurance Co. Chris Niezgodzki CPA, Director Budget, Planning & Analysis, Grand Canyon Education, Inc.

financial executives international

LEADER...

VISIONARY...

COLLABORATOR... attributes of true achievers

U.S. Bank salutes the 2014 Financial Executives International CFO of the Year Award Finalists...for your outstanding performance in your roles as corporate financial stewards! Your commitment and dedication to the prosperous business development are the positive results this program has brought to our Arizona communities. And thatâ&#x20AC;&#x2122;s what makes our neighborhoods better places to live.

Because when our communities succeed, everyone wins.

U.S. Bank is honored to sponsor the 8th Annual CFO of the Year Awards. Congratulations to all!

usbank.com Member FDIC. Š2014 U.S. Bank. 7413

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CFO of the Year

financial executives international

David Boden

Rhonda C. Boyle

What Snell & Wilmer does: Full-service business law firm.

What MIM does: The only museum in the world devoted to global musical instruments.

Director of finance Snell & Wilmer swlaw.com

Background: Boden is responsible for planning, directing and controlling the firm’s finances. He is focused on accounting functions that include billing, forecasting, accounts receivable, accounts payable, budgeting and financial analysis. Since joining Snell & Wilmer in 2009, Boden has helped make the firm’s revenue recognition, financial budgeting and reporting more efficient.

Impact on Snell & Wilmer: Boden was the leader for the successful installation of a new financial system, which was no small undertaking, since the firm was moving from a 30-year-old DOS-based system to a Windows-based system. Boden also helped the firm move to a new platform for its IP docket system, which could not have any errors or it could lead to loss prevention claims. Boden’s leadership is credited for the successful implementation of both systems, which were completed on time and on budget.

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CFO and director of operations Musical Instrument Museum mim.org

Background: Boyle oversees six departments at MIM, including finance, technology, facilities, security, Café Allegro and the museum’s store. As a member of MIM’s six-person senior leadership team, Boyle contributes to long-range organizational planning, partnershipbuilding and executive decision-making.

Impact on MIM: In October 2012 Boyle oversaw the implementation of a new pricing structure that led to an increase in museum revenue of $330,000 in the first year. The new pricing structure is in line with other cultural organizations, yet still provides excellent value for visitors. Under Boyle’s direction, the museum has also introduced new revenue streams, including the creation of a gift card and an online Museum Store.

Boyle has also developed several analysis models used to evaluate the effectiveness of new programs in increasing attendance at the museum.

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Providing knowledge, insight, and services tailored to the changes you see in the world. And your company.

To learn more about Deloitte Growth Enterprise Services, contact Jonas McCormick +1 602 234 5215 or email us at dges@deloitte.com Gain insight with Perspectives, our series of reports, webcasts, and events for mid-market and privately held companies at www.deloitte.com/us/dges

As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, and Deloitte Tax LLP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2014 Deloitte Development LLC. All rights reserved.

36 USC 220506 Member of Deloitte Touche Tohmatsu Limited

AB | November-December 2014

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CFO of the Year

financial executives international

Dick Camuso

Feng Chiou

What STC does: Services and Solutions to track and report diseases, providing actionable data to mitigate the risk of outbreaks.

What ABIL does: Offers and promotes programs designed to empower people with disabilities. ABIL also owns and operates the Disability Empowerment Center and the Virginia G. Piper Sports & Fitness Center (SpoFit).

CFO Scientific Technologies Corporation stchome.com

Background: Camuso is a seasoned financial executive with more than 30 years of experience working with companies ranging in size from international Fortune 100 to early-stage development. His responsibilities have included restructuring companies, arranging for financing, and developing strategic business plans. He also spent 20 years in the computer industry with IBM and Data General.

Impact on STC: In 2006, STC was more than $6 million in debt and in its bank’s workout group. Camuso was a financial advisor to the company from, 2007-2010, providing leadership, oversight and strong guidance to help the company return from near bankruptcy to complete solvency. He joined STC as its CFO after that and through his leadership, STC has no debt, does not need bank credit to operate and once again is growing its revenues.

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Vice president and CFO Arizona Bridge to Independent Living (ABIL) abil.org

Background: Chiou is responsible for overseeing the financial operation of ABIL, including accounts payable, receivables, payroll, accounting and billing. Chiou also oversees the billing for ABIL’s $35 million AHCCCS/ ALTCS funded Personal Assistance Services (PAS) Home Care program, which employs approximately 2,300 caregivers annually.

Impact on ABIL: When Chiou took over the department in 2002, ABIL had a $6.5 million dollar budget and receivables were in disarray. ABIL’S provision for doubtful accounts/bad debt was between 10 and 12 percent. Chiou’s diligent systems and billing analysis reduced this amount to less than 1.5 percent and she now steers an annual budget of $38 million.

Michael Chesin Senior vice president and CFO Helios Education Foundation helios.org What Helios does: Philanthropic, public charity focused on creating opportunities for individuals to succeed in postsecondary education.

Background: Chesin oversees and directs all of the foundation’s financial activities, including the continued health and growth of the foundation’s endowment. He also leads the human resource and technology infrastructure responsibilities.

Prior to joining Helios, Chesin was controller and assistant treasurer for Southwest Student Services Corporation, a $5.3 billion student loan and financial services company.

Impact on Helios: Through Chesin’s vision, strategic guidance and financial oversight, Helios' endowment has grown from $512 million to $680 million in 10 years. This includes a disbursement of more than $155 million in philanthropic activity. When Helios was created, the goal was for the foundation to exist in perpetuity.

Chesin’s leadership has allowed the foundation’s endowment to be positioned to achieve this goal, while also providing vital resources to improve education.

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CFO of the Year

financial executives international Keith Cowan

was with Honeywell International for 15 years in a variety of corporate and business unit roles, most recently as director of global financial planning and analysis for Honeywell Process Solutions.

What AAA does: Insurance, travel, emergency roadside assistance, auto repair, financial services and traffic safety advocacy.

Impact on AAA: Cowan played a key strategic role in the evolution of AAA Arizona’s holding company, which now includes 10 independent AAA clubs across the country, with revenue in excess of $1.5 billion. Cowan’s ability to not only look at local strategy and needs, but also the goals and strategy for the larger entity and find optimal and equitable solutions has been a key to AAA’s success.

CFO and vice president, membership AAA Arizona

Background: Cowan is responsible for a number of key organizational functions, including membership sales and service operations, financial planning and analysis, treasury and risk management, controllership, information technology, internal audit and compliance, purchasing and project management. Prior to joining AAA, he

Dennis Dahlen Senior vice president and CFO Banner Health bannerhealth.com What Banner Health does: Nonprofit healthcare system.

Background: Dahlen oversees the financial operations of an organization with more than $5 billion in revenue, including all treasury functions related to investment management and capital development.

Dahlen’s work with executives throughout the company ensures that realistic budgets are established and budget goals are met or exceeded.

Gary Dalke CFO Western Refining, Inc. wnr.com

What Western Refining does: Independent crude oil refiner and marketer of refined petroleum products.

Background: Dalke is one of Western’s founding executives and is responsible for all finance, treasury, tax, accounting and information system activities throughout Western and its affiliates. Dalke is also a critical member of the executive committee, responsible for establishing company goals, performance metrics and monitoring mechanisms.

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Impact on Banner Health: Under Dahlen’s leadership, financial pro formas have been reliably solid foundations for Banner’s expansions in Arizona. They have included construction of Cardon Children’s Medical Center, Banner MD Anderson Cancer Center, Banner Ironwood Medical Center, new towers at Banner Baywood Medical Center, Banner Del E. Webb Medical Center, Banner MD Anderson Cancer Center and Banner Estrella Medical Center; the acquisition of Sun Health (two hospitals and a research center), Arizona Regional Medical Center and Casa Grande Regional Medical Center; and the development of the Banner Health Network.

Impact on Western Refining: In the fall of 2013, Dalke guided Western through a spin-off of the company’s logistics assets via an initial public offering of a new entity — Western Refining Logistics, LP — and acquisition of the general partner and 38 percent of the limited partnership of Northern Tier Energy LP, both within a 31-day period. Dalke led by example, demonstrating a dedicated work ethic, calm demeanor, command of accounting principles and financial market prowess.

Each of these attributes were critical to successful completion of these extraordinary accomplishments.

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| (602) 9.KEYSER AB | November-December 2014

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CFO of the Year

financial executives international

Lawrence Eisel

Helen Esquilin

Javier Favela

What Total Transit does: Comprehensive mobility management company, integrating private transportation, public transportation and transportation management services.

What the BBB does: Help consumers make smarter decisions in the fast-changing marketplace.

What JFCS does: Offers behavioral health and social services to children, families and adults.

Background: Esquilin is not only responsible for BBB’s finances, but also administration and human resources.

With 55 employees and four offices throughout Arizona, Esquilin handles everything from budget planning, employee issues and health benefits, to making sure the bills are paid.

Background: Not only has Favela functioned as the CFO and COO for JFCS, but also for Topaz Information Solutions and Behavioral Health Information Network of Arizona. During the past six years, the revenues from JFCS have grown from $17,983,373 to $34,480,724. Favela has been instrumental in modeling the business dynamics so that earlier and better decisions can be made.

CFO Total Transit totaltransit.com

Background: In his first five years, Total Transit’s revenue has nearly quadrupled.

Eisel has been heavily involved in strategic planning, business planning, budgeting and working capital management to support this phenomenal growth. In addition, Eisel has been successful in developing a strong relationship and credibility with the company’s banks to finance this growth. He has also coordinated all risk management activities for the organization.

Impact on Total Transit: Eisel has implemented several changes that showcase his vision, including implementation of a balanced scorecard process, establishing an internal audit function and coordinating a significant estate planning project that will ultimately save millions in future tax liabilities.

Most recently, to combat a tighter insurance market and increasing auto liability premiums, Eisel and his team successfully identified alternative insurance designs and created a captive insurance entity, which will control the costs of the company’s auto liability risk.

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Director of finance Better Business Bureau serving Greater Arizona bbb.org/phoenix

Impact on BBB: During the financial downturn in 2008-2010, businesses were looking for ways to reduce expenditures.

BBB began accepting quarterly and monthly payment plans from businesses that wished to remain BBB-Accredited, but needed to reduce costs. Esquilin had to come up with an entirely new system to report financials. Over the course of one year, she helped convert BBB’s accounting system from cash based to accrual. Her efforts helped the organization grow from 9,500 BBBAccredited businesses to more than 11,000 today.

CFO and COO Jewish Family & Children’s Service jfcsaz.org

Impact on JFCS: Favela has been the main driver for Topaz, a software company specializing in electronic health records for behavioral health agencies.

In six years under Favela’s direction, Topaz’s revenue has increased from $300,000 to $3 million and customers grew from one to 20. Additionally, Favela developed the business plan and financial oversight for the startup home healthcare program at JFCS, a social enterprise whose revenue is channeled back into the community.

marsh.com

Success does not come from eliminating risk.

SUCCESS COMES FROM

MANAGING RISK FOR GROWTH.

We help you balance your strengths against the risks that come with growth.

2325 East Camelback Road, Suite 600 • Phoenix, AZ 85016 • +1 602 337 6300 Copyright © 2014 Marsh LLC. All rights reserved. USDG7686

Partnering for impactSM Marsh is one of the Marsh & McLennan Companies, together with Guy Carpenter, Mercer, and Oliver Wyman.

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CFO of the Year

financial executives international Michelle L. Giesen, CPA

Vice president of finance and CFO Arizona Humane Society azhumane.org What the Humane Society does: Rescues, heals, adopts and advocates for sick and injured animals by providing medical and behavioral care and spay and neuter services.

Background: Giesen oversees accounting and finance, purchasing, facilities, information technology and data management at the Arizona Humane Society and has 20 years of combined experience in public

Marc Golan

CFO and and director of real estate Pita Jungle Restaurants pitajungle.com What Pita Jungle does: Full-service restaurant chain featuring a variety of cuisine across a wide array of cultures and influences.

Background: Golan plays an essential role as part of the executive management team and is directly responsible for several departments, including accounting and finance, real estate, external audit, legal, acquisitions and franchise development.

Since joining the company in 2010, the company has more than doubled in size.

Bryce Hancock CFO BeyondTrust beyondtrust.com

What BeyondTrust does: Vulnerability management solutions that reduce the IT security risks and simplify compliance reporting across heterogeneous IT environments.

Background: Hancock’s impact on the business comes from understanding the business drivers from each of the executives within the organization. He has built a successful financial model for the $70 million business, and today, BeyondTrust is experiencing 35 percent 76 AB | November-December 2014

and private accounting. Previously, Giesen spent six years as the CFO for Wespac Construction, Inc., and oversaw the accounting department for the $175 million construction firm. She also served as controller for DMB Realty and spent four years in public accounting at Arthur Andersen.

Impact on Humane Society: Giesen led the development of the Humane Society’s thrift store strategy, including development of a pro forma budget and business plan. This vision of a nonprofit generating recurring revenues to establish sustainable program support has been a key to the Humane Society’s success.

Impact on Pita Jungle: After the company’s vice president of operations left in 2012, Golan immediately assumed the additional responsibilities of overseeing corporate development and strategy. Using his deep knowledge of commercial real estate markets across the U.S., Golan developed a market penetration strategy that includes plans for more than 70 locations in California, Colorado and Nevada. Because of his leadership, the company is now executing plans to acquire financing partners, operating partners and development partners in these new markets.

profit margins. He’s known for being very hands-on and one who consults each executive to make sure everyone’s on board with the market indicators.

Impact on BeyondTrust: Through Hancock’s leadership, all accounting systems and CRM (and many offices) were consolidated. The financial model Hancock built was designed for anyone in the company to have the ability to see how employees are doing against their goals and objectives as a company.

The model also shows how the company matches up against companies that are public, as well as trends toward top line revenue growth and how that will affect the company’s profits moving forward.

AAA would like to

congratulate

our CFO, Keith Cowan, and all the CFO of the Year honorees for their outstanding performance as financial leaders.

As a

112-year-old

company,

AAA Arizonaâ&#x20AC;&#x2122;s success depends on our ability to continually reinvent ourselves while delivering a steady track record of financial results and service excellence year after year.

AB | November-December 2014

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CFO of the Year

financial executives international

David Hansen CFO Jennings, Strouss & Salmon jsslaw.com

What Jennings, Strouss & Salmon does: Law firm specializing in litigation, healthcare, real estate, tax, estate planning, energy and other business matters.

Background: Hansen has been with Jennings, Strouss & Salmon since March 2007, beginning as the firm’s director of finance before being promoted to CFO in June.

His analytical skills and loyalty to the firm resulted in his promotion to CFO, becoming the first person in firm history to earn that title.

Prior to working in the legal services industry, Hansen served as regional controller for a publicly held plastics manufacturing company based in Wisconsin. He currently serves as the treasurer for the Jennings Strouss Foundation.

Impact on Jennings, Strouss & Salmon: Hansen reviewed the firm’s relationship with its auditors and made a change, resulting in significant savings for the firm and more timely financial statements and tax returns. He worked closely with the managing attorney during the recession to allow greater flexibility in the analysis of data.

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Michelle Hoffman

CFO Real Time Companies real-time-companies.com

What Real Time does: Engineering services for the aerospace and aviation industry.

Background: Hoffman has more than 19 years experience in areas of finance, accounting, business development and strategic planning profession.

Besides accounting and finance, she oversees human resources, facilities, IT, purchasing and administration.

Her focus on financial operations, profit optimization and strategic planning has enabled sustainable growth and assured compliance.

Impact on Real Time: Hoffman had a large responsibility in collaborating with the CEO to identify what the company’s business changes needed to be. She took the position in March 2012. Within 90 days, she prepared a plan for the CEO identifying the biggest risk areas, the current financial and compliance condition of the company, list of company growth obstacles, cost drivers and areas where savings were possible, along with a turnaround solutions and prioritization plan.

Upon obtaining CEO agreement, she engaged on a multi-year plan to solve, stabilize and structure the company for growth.

Ellen Howlett CFO AGM Container Controls agmcontainer.com

What AGM does: Manufacturer of environmental control hardware for containers that carry missiles and other sensitive equipment.

Background: At the time of Howlett’s promotion to treasurer in 1994, AGM was a $4 million dollar a year company with a stock price of $5.72 per share. Today, AGM is a $19 million dollar a year company with a stock price of $71.58 a share, which represents a 12-fold increase in 20 years. Howlett also oversees all of AGM’s benefits plans, including AGM’s medical plan, defined benefit pension plan and AGM’s employee stock ownership plan.

Impact on AGM: In 2004, Howlett was instrumental in helping AGM receive its first International Organizations Standards (ISO) registration, which has greatly helped AGM to secure or increase its manufacturing business with large, mostly defense-related companies. That same year, Howlett was given the responsibility of being AGM’s ISO administrator.

Donâ&#x20AC;&#x2122;t worry, Dennis.

This ad was within budget.

Congratulations to Dennis Dahlen on being nominated for CFO of the Year Award, from all of us at Banner Health.

BannerHealth.com â&#x20AC;˘ /BannerHealth AB | November-December 2014

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CFO of the Year

financial executives international Ward Huseth CFO Great Hearts Academies greatheartsaz.org

What Great Hearts does: Charter school management.

Background: Huseth oversees the finance, technology, operations and facilities teams of the Great Hearts Academies network. Prior to joining Great Hearts, Huseth was a partner and the CFO for the Charter School Growth Fund, a nonprofit venture capital fund that invests in the nation’s highest performing charter school operators to dramatically expand

Craig Jones CFO and treasurer District Medical Group, Inc. dmgaz.org

What DMG does: Multi-specialty physicians group and faculty practice plan, covering all clinical and educational services for Maricopa Integrated Health System and Maricopa Medical Center.

Background: DMG’s organizational chart begins with the board of directors, followed by the president and CEO, followed by Jones. Jones attends board meetings and interfaces with the board’s committees. As one of the two

Jennifer Kimbrough

CFO Medical Security Card Company, LLC (dba ScriptSave) scriptsave.com What ScriptSave does: Helps pharmacies build customer loyalty, increase foot traffic and drive sales.

Background: Kimbrough is responsible for all aspects of the financial operations. Kimbrough works with the CEO to establish annual revenue and EBITDA targets that drive the development of the company’s annual “WIGS” – Wildly Important Goals.

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the number of outstanding educational options for underserved students.

Impact on Great Hearts: Huseth has built a “best in class” facility development team, an extremely challenging task for charter schools due to regulatory barriers and lack of statefunding for facilities. Huseth’s campus development program builds campuses that are world-class prep schools — with amenities including science labs, libraries and athletic facilities — within tight budget parameters and timelines.

Huseth’s business plan calls for growing Great Hearts from 19 to 23 schools in Phoenix within four years and opening 30 schools in Texas over 10 years.

executive officers, he focuses on the non-clinical business issues and is a pivotal part of meeting DMG’s business and financial goals.

Impact on DMG: Since DMG is a relatively new nonprofit, Jones helped build DMG’s cash position to provide funding for expansion.

This allowed DMG to take over the Children’s Rehabilitative Services for Maricopa County under a contract with UnitedHealthcare. This is a 55,000 square-foot clinic that cares for more than 15,000 chronically ill children.

DMG’s current cash position reflects the progress that has been made after the first four years.

Impact on ScriptSave: Due to a significant regulatory change in the market, revenues dropped from $50.9 million in 2005 to a low of $17.3 million in 2007. After a significant re-structuring, the company focused on reinventing the business model.

Kimbrough worked with the CEO to create a financial roadmap for getting the company back on its feet. This initiative was a great way to engage the executive leadership in conversation about the most sustainable way to grow the company. Kimbrough’s analytical and financial acumen helped the company achieve revenues of $46 million in 2013, with projected revenues of $65 million in 2014.

Michelle Hoffman Real Time Companies, LLC CFO of the Year Nominee

Congratulations Michelle!

The entire Real Time family is proud and appreciative of your LEADERSHIP and outstanding PERFORMANCE in EVERYTHING that you do.

Your EFFORTS and GUIDANCE have elevated the team and company’s performance level, expectations, and reputation. Your constant attention to COMPLIANCE and contract NEGOTIATIONS have expanded our Embedded Aerospace presence domestically and internationally. You’ve CONSISTANTLY gone above and beyond your CFO duties and we could not imagine Real Time’s future without your guidance.

Thank you for your DEDICATION and COLLABORATIVE leadership!

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CFO of the Year

financial executives international

Brian Kleppinger

Executive vice president and CFO AERO Federal Credit Union aerofed.net What AERO does: Checking, savings, lending, financial planning, ancillary products and services.

Background: Kleppinger has been with AERO since 1984 and has managed to increase the credit union’s net worth over the years. When he joined AERO, the net worth to total assets ratio was approximately four percent and Kleppinger has worked to increase it to more than 18 percent.

Impact on AERO: Kleppinger knew what it would take to keep the organization growing and it wasn’t going to happen with a closed membership, so he helped develop a 200-page Community Charter Application for Underserved Areas in Arizona and New Mexico that was submitted to the National Credit Union Association. The application focused on how the business could grow in both states, a five-year strategic business plan and a detailed marketing plan. The plan is taking AERO from having 40,000 potential new members to more than 2 million potential new members.

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Gary Maclay

Adam J. Miller

What Laron does: Machining, mechanical repair, fabrication, field service, electric motor repair, electrical apparatus service and repair.

What Barron does: Manufacturer of emergency, exit and outdoor lighting.

CFO Laron Incorporated laron.com

Background: Maclay is responsible for all of the company’s financial, accounting, and treasury functions, as well as overseeing IT, purchasing and contract administration. While at Laron, Gary has instituted numerous new systems, processes, procedures and forged numerous key business partnerships. Maclay joined Laron in 2006, just in time to become deeply entrenched in the due diligence, business negotiations and financing for an acquisition which doubled the assets and revenues of the company.

Impact on Laron: In 2009, Laron’s principal bank failed and the company was struggling financially. The failed bank assets were purchased from the FDIC by another bank, which notified Laron that it needed to exit the loans as quickly as possible. Maclay located and engaged a local consulting group and led a team to refinance Laron’s loans through a complex inter-creditor agreement, thereby stabilizing the uncertainty in Laron’s banking situation.

CFO Barron Lighting Group barronltg.com

Background: Miller is a financial executive with broad experience in finance, accounting, auditing, personnel and operational management. He has hands-on experience with real estate, manufacturing, distribution, ERP implementations, business valuation, financial and litigation consulting and asset based financing. His operational focus has been on developing and implementing strategic plans, increasing efficiencies by streamlining operations, preparing complex financial models and negotiating asset-based financing.

Impact on Barron: Miller has restructured the company’s debt twice, the most recent during 2013. The company wanted to purchase a new building, and Miller worked with several banks to find one that allowed the building to be purchased while preserving the owner’s personal capital by leveraging the existing assets of the company.

He negotiated very favorable interest rates and rebated programs that will both save money and generate income for the company.

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CFO of the Year

financial executives international Chris Palmer CFO Pegasus Research Group (dba Televerde) televerde.com

What Televerde does: Provider of integrated lead to revenue services.

Background: Palmer is focused on the company’s growth plans, market opportunities, strategic direction and practices that will scale with the business as it grows.

He collaborates closely with Televerde’s executive team, sales, marketing and operational leaders on growing the company’s core competency of

Zachary Price

Executive vice president and CFO National Bank of Arizona nbarizona.com What NB|AZ does: Full-service community bank offering personal and business financial services.

Background: Price is responsible for the accounting, financial reporting, risk management and corporate facilities groups. These groups are responsible for all regulatory and management reporting, forecasting and budgeting, strategic analysis, risk identification and vendor and properties management.

Lisa Replogle CFO The CORE Institute thecoreinstitute.com

What CORE does: Arizona’s largest orthopedic practice.

Background: Replogle oversees all finance functions for Excellence Headquarters, the management company of The CORE Institute. Her responsibilities include directing the company’s accounting, tax, treasury, business finance and corporate services activities. She joined Excellence Headquarters in May 2010 as a consultant after holding a broad range of financial leadership roles at both the Sun Health Hospital System and Ernst & Young.

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designing and delivering integrated demand generation and lead nurturing services to clients.

Impact on Televerde: Palmer led improvement plans for operational gaps which increased major account profitability from $33 to over $45 per hour. Palmer also implemented key retention programs, including a profit sharing program, a new low operating cost 401(k) plan and a 401(k) matching program, and a high deductible health plan that saved money and increased client satisfaction.

He also implemented a mezzanine equity plan to allow key employees to participate in the long-term growth of the business and encourage retention.

Impact on NB|AZ: Price spearheaded a complete revamp of internal management reporting systems. Through this massive undertaking, he was able to centralize reporting functions and integrate a credit reporting function. These improvements are crucial given the amount of regulatory and compliance reporting that is required in the banking industry. Price also helped improve occupancy efficiencies of the NB|AZ branch network to help the bank adapt to the changing nature of the banking industry, as technology reduces the need for in-person branch visits.

Impact on CORE: Replogle works closely with fellow C-level and executive team members to proactively plan for growth and prepare operational strategies. Thanks in part to her efforts, the company saw 2013 net revenue growth of 44 percent with acquisitions and current forecasts include 2014 revenue growth of 88 percent. An example of Replogle’s leadership is the decision to bring patient billing in-house, resulting in the addition of 30 new employees, while also implementing a new billing system, which gave CORE better control over the entire revenue cycle.

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CFO of the Year

financial executives international

Tamara Saunders CFO Telesphere telesphere.com

What Telesphere does: Provider of fully hosted VoIP and unified cloud communications services for businesses.

Background: Saunders has more than 15 years experience in finance and accounting and is responsible for all accounting and finance functions at Telesphere.

Prior to joining Telesphere, she spent six years with iLinc Communications, Inc. in Phoenix as the vice president of finance and corporate controller.

She was responsible for the company’s accounting, forecasting, SEC and external reporting, and human resources.

Impact on Telesphere: When Saunders started at Telesphere, she realigned processes to better segregate duties, and ensure a lock down for checks and balances. More than half of the finance department turned over within the first year, resulting in a shift toward more experienced professionals who were hired for their procedural experience.

In addition to creating a strong team, she saved the company more than $500,000 annually in personnel costs and professional fees.

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Richard Skufza

Executive vice president and CFO LaneTerralever laneterralever.com What LaneTerralever does: Advertising, interactive marketing, technology services, development and design, social media and public relations.

Background: Skufza works closely with the CEO and other executive leadership to accomplish corporate strategic objectives. He is one of three key contributors to the development and execution of LaneTerralever’s’s corporate strategy while maintaining important external relationships with banks, clients, external auditors and suppliers.

Impact on LaneTerralever: Over the last nine months, Skufza led the integration of the accounting, management information and telephone systems into one unified system and was instrumental in bringing the two cultures and two offices of E.B. Lane and Terralever into one office. Skufza’s prior initiatives include on-line recruiting and employee orientation process; an enhanced performance evaluation process in order to align corporate values, mission and vision throughout the organization; and employee training and staff development with the introduction of E.B. Lane University.

Mark Straszynski CFO Best Western International bestwestern.com

What Best Western does: Provides hoteliers with global operational, sales, marketing and promotional support.

Background: Straszynski oversees and develops overall financial strategy and is responsible for global finance, accounting, reporting, internal controls, treasury and financial-based decision making. Straszynski has raised the level of professionalism, accountability, support and effectiveness of the financial team and operations. Through his efforts, Best Western’s financial team is better aligned as a organizational partner to help drive the brand’s goals and objectives.

Impact on Best Western: To bring a greater purpose to the work performed by his team, Straszynski has been involved in Best Western’s charitable efforts and empowered his team to lead new charitable initiatives. Straszynski helped reorganize Best Western’s charitable arm, Best Western For A Better World. The new structure has allowed for greater employee and hotel staff participation in organizations like the Red Cross, Save the Family and the Salvation Army, making Best Western a better community partner throughout North America.

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CFO of the Year

financial executives international José G. SuárezCabrera CFO and vice president of finance and accounting MAAX Spas Industries Corp. maaxspas.com What MAAX Spas does: Hot tubs and spas.

Background: Suarez is an accomplished financial strategist with a track record of providing solid financial leadership for national and international companies.

Throughout his career, he has demonstrated his ability to effectively coordinate large budgets, improve and manage P&Ls and facilitate corporate

Impact on MAAX Spas: During his five-year tenure with MAAX, Suarez has turned MAAX around from a 16 percent loss in earnings before interest, tax, depreciation and amortization to a five percent gain.

Suarez also led negotiations with MAAX’s main European distributor and agreed to support the distributor’s operations by financing the supply of MAAX’s products Europe. The move increased MAAX’s sales in Europe by eight percent.

Tracy Taylor

to teach group exercise classes for Mountainside and has been certified as a group exercise instructor, personal trainer and weight management consultant.

What Mountainside does: Operates 12 Valley fitness centers.

Impact on Mountainside: In the last year, Taylor finalized a $40 million transaction, refinanced more than $13 million in debt and closed two loans totaling $15 million. Taylor spearheaded Mountainside’s migration to Intact accounting software, which gave Mountainside the detailed reporting capabilities that allowed it to complete its first major capital raise. She also worked with Mountainside’s CPE to complete the company’s annual audit.

CFO Mountainside Fitness Centers mountainsidefitness.com

Background: Prior to joining Mountainside, Taylor was the controller for a residential homebuilder in Maryland and managed more than $1 billion in real estate assets. In addition to her experience in the finance arena, Taylor has also managed health clubs for more than 12 years, three of those years at Mountainside. She continues

Dennis M. Via CFO NFP Property & Casualty Services, Inc. nfp.com

What NFP does: Commercial lines, personal lines, surety, benefits and medical insurance.

Background: Via’s responsibilities include oversight of all agency accounting and finance functions, budget and plan development, cost savings and liaison with outside professionals. He provides advice and consultation to owners and management on financial performance. He handles related financial issues, conducts monthly 88 AB | November-December 2014

turnarounds. As CFO of MAAX Spas, he is responsible for the finance function of the manufacturer of hot tub products with $50 million in annual sales.

close, balancing and reconciliation and is hands on in daily operations and processing as needed, including trouble shooting administration and IT operational issues. Via provided significant due diligence support to private equity groups in the capital markets, ultimately supporting the successful sale of the agency to NFP Corporation in 2011 and becoming its national headquarters for property and casualty insurance operations.

Impact on NFP: Via consolidated the cash management process among 14 locations into two deposit locations with streamlined, efficient processing.

Via has assisted in the integration of more than a dozen closed acquisitions since July 2011, adding to the success of the company.

Gary Dalke, CFO, Western Refining

We’ve always known that Gary serves as an important link in Western Refining’s management chain.

We’re glad others recognize it, too.

Congratulations, Gary, on being named a 2014 finalist for CFO of the Year.

We appreciate the strength you bring to our company.

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CFO of the Year

financial executives international

Ron Vincent CFO Crexendo crexendo.com

What Crexendo does: Telecommunications and Web hosting.

Background: Vincent is responsible for all accounting processes, coordinating with auditors, coordinating all filings and all financial calls. Vincent is credited with being instrumental in transforming Crexendo, which has been completely reorganized and refocused over the last three years.

Before joining Crexendo, Vincent served as an audit senior manager for Ernst & Young, LLP in Phoenix.

His experience included auditing and substantial review of business plans and services for various telecommunication and internet marketing service providers.

Impact on Crexendo: Vincent oversaw a tremendous transformation as Crexendo morphed from a Web-based services organization to a hosted telecommunications organization. As the company transformed, Vincent had to downsize the accounting group, while implementing a new billing system at the same time.

Vincent reviewed and reduced a significant amount of expense as he implemented the new program.

Vincent also oversaw the acquisition and merger of two companies during the process.

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James Walbom

Gregory D. Waller

What Tiempo does: Software development and testing.

What Ulthera does: Created Ultherapy, a non-surgical ultrasound treatment that counteracts the effects of time and gravity on your skin.

CFO Tiempo Development tiempodev.com

Background: Walbom has significant experience in corporate finance with a focus on growth technology companies.

He has more than 15 years of experience in venture capital finance, corporate development, and strategic planning. Prior to joining Tiempo, he was the Managing Director of Commercialization at the Translational Genomics Research Institute.

Impact on Tiempo: In the two years since Walbom joined Tiempo, he has supervised the restructuring of Tiempo’s operating companies, creating three new legal entities (two in Mexico); secured Maquiladora status for Tiempo’s Mexican operations; oversaw completion of the build out of Tiempo’s Hermosillo facility (150+ person capacity); and established Tiempo’s first office in Guadalajara, which has grown from zero to more than 35 employees in its first year.

Within the finance department, Walbom oversaw the transition from Tiempo’s previous banking relationship to Silicon Valley Bank and worked with SVB to increase Tiempo’s available credit by almost $10 million.

CFO Ulthera ulthera.com

Background: Waller is a key member of Ulthera’s senior management team and brings more than 40 years of global leadership for both privately held and publicly traded companies.

Leveraging his expertise in financial management, accounting, treasury, mergers and acquisitions, Waller has garnered a solid track record of strategic financial growth within organizations. This experience was of great value in preparing Ulthera for the public markets with its S1 Registration Statement, as well as running a duel path M&A process, which resulted in the sale of Ulthera to Merz, a German private company, for $600 million.

Impact on Ulthera: Waller created a system that got all U.S. orders for disposables to be purchased by credit card, which generated great cash flow and reduced days sales outstanding (DSO) from 80 to 33.

Congr atulations!

AzBusiness Magazine would like to congratulate all of the 2014 CFO of the Year Finalists for outstanding performance in their roles as corporate financial leaders!

30 YEARS OF EXCELLENCE

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CFO of the Year

financial executives international

Steve W. Walters

Roger Zetah

What Fulton Homes does: Acquires and develops raw land into finished subdivisions and builds new homes.

What the Goldwater Institute does: Public interest research and litigation.

CFO Fulton Homes fultonhomes.com

Background: Walters oversees the financing needs of the business, managing and investing company cash, assists with the pricing of new homes, is responsible for the company’s insurance policies (business related as well as employee health insurance coverage), serves as in-house risk manager, oversees the company’s 401K plan and handles the shareholder’s personal tax returns.

Impact on Fulton Homes: With the downturn in the housing market in 2007, Walters led the company through bankruptcy proceedings after an unsuccessful negotiation with five national banks to restructure the company’s unsecured credit facility. He engaged the bankruptcy attorneys, represented the company’s interest throughout the process in a professional manner, and helped develop a successful strategy that prevailed in bankruptcy court enabling the company to emerge with a full repayment plan that allowed the company to stay in business.

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CFO Goldwater Institute goldwaterinstitute.org

Background: Zetah oversees the Goldwater’s finances from start to finish. Colleagues say he is second-to-none when it comes to budgeting, record-keeping, transparency, accuracy, internal audit and establishing best practices.

Under Zetah, Goldwater has at least five straight years of independent audits with no findings, a four-star ranking from Charity Navigator, and the highest possible score from Guidestar.

Impact on the Goldwater Institute: Zetah has directed and grown Goldwater’s intern and law clerk program from what started as two or three “kids” in the summer into one of the most competitive intern and clerk programs in our industry, serving more than 30 young adults every year. He raised the organization’s standards, worked directly with universities and law schools, ramped up the interview process, and developed important program features to make it more attractive to students.

Congratulations Craig!

District Medical Group congratulates their CFO Craig Jones on becoming a finalist for this year’s CFO of the Year Award. During his career at DMG, Craig has given leadership and direction to our company. His contributions have been vital in guiding DMG towards a very successful and monumental period of growth and expansion.

His commitment to this organization will undoubtedly benefit us for many more years to come. We are all so very proud that he is a member of our team!

District Medical Group - 2929 E. Thomas Road, Phoenix, AZ 85016 • www.dmgaz.org

Because not all solutions are black and white.

TM

Snell & Wilmer is proud to support the 8th Annual CFO of the Year Awards.

Understanding what makes you unique.

TM

www.swlaw.com ONE ARIZONA CENTER | 400 EAST VAN BUREN STREET | SUITE 1900 | PHOENIX, AZ 85004 DENVER | LAS VEGAS | LOS ANGELES | LOS CABOS | ORANGE COUNTY | PHOENIX | RENO | SALT LAKE CITY | TUCSON

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“We’re bringing in BDO. The partner’s already on it.”

People who know, know BDO.SM

BDO is proud to support the 2014 CFO of the Year Awards BDO provides assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. We offer a sophisticated array of services and the global capabilities of the world’s fifth largest accounting and consulting network, combined with the personal attention of experienced professionals.

Susan Wolak, Assurance Partner 602-293-2350 / swolak@bdo.com

Scott Ziemer, Tax Director 602-293-2530 / sziemer@bdo.com

BDO, 2201 E. Camelback Road, Suite 360, Phoenix, AZ 85016 Accountants and Consultants © 2014 BDO USA, LLP. All rights reserved.

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www.bdo.com

ABIL thanks Financial Executives International and congratulates Feng Chiou on being a finalist for the 2014 CFO of the Year

Programs by and for people with disabilities

www.abil.org

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con gr atulati on s lawr en ce e i sel on y our n o mi n ati on f o r 2 0 1 4 cf o of th e y ear !

The Total Transit family appreciates your years of service and dedication to the company’s Core Principles.

• Operate transparently with honestly and integrity at all times • Manage risk and our impact on the environment • Attract, mentor and retain the best people • Understand the customer’s needs and exceed their expectations • Be an indispensable member of our community • Encourage innovation and embrace change 602-200-5500

totaltransit.com

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FURNISHING & DESIGN SHOW

SPONSORED BY

COMING 2015 March 28th & 29th Scottsdale WestWorld

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30 YEARS OF EXCELLENCE

For more information visit exposaz.com

AZ BIG MEDIA CARES

10,000

REASONS to participate in Az Business Magazine’s “Corporate Angels” For the 5th consecutive year, Az Business Magazine is featuring its salute to nonprofits and charitable organizations with Corporate Angels.

This year, we are growing Corporate Angels into a two-part series.

In addition, we are incorporating another element called AZ Big Media Cares, which gives you 10,000 more reasons to participate..

What are the 10,000 reasons? Each nonprofit featured in Corporate Angels will also be entered into a special drawing. From those entrants, one will be randomly selected to receive a check from AZ Big Media for $10,000. Odds are good that your favorite nonprofit could be the lucky winner.

Proud Partner: Cheryl Green

Publisher

For more information, contact AZ BIG Media at 602.277.6045 | 3101 N Central Ave., Ste 1070 • Phoenix, AZ 85012 | azBIGmedia.com

Spreading the wealth Arizona billionaire Bob Parsons and his wife have vowed to give away half of their fortune

By MICHAEL GOSSIE

G

oDaddy founder Bob Parsons has taken the phrase “sharing the wealth” to a whole new level.

Since establishing the Bob and Renee Parsons Foundation in 2012, Parsons and his wife have awarded more than $64 million to charities and nonprofits, most of them in Arizona.

“Hope is not something that should be reserved for a particular need or group,” Parsons says. “There are many causes out there which receive less public support because of the issues they address. These are the projects we seek out.”

Through their foundation, Bob and Renee Parsons have helped at-risk youth, the homeless, those suffering from HIV and AIDS and many other causes that lack support because there is not lot of glamour behind them. In 2013 alone, the foundation pledged nearly $21 million, including gifts exceeding $1 million to these Arizona causes: • Southwest Center for HIV/AIDS: $4,265,000 • Muhammad Ali Parkinson Center: $2,035,000 • Phoenix Children’s Hospital: $1,540,000 • Make-A-Wish Arizona: $1,511,000 The Parsons have only ramped up their charitable giving in 2014.

• In September, Circle the City was able to dramatically expand its medical services for homeless individuals in the Greater Phoenix area after receiving a $2 million grant from The Bob & Renee Parsons Foundation. The organization will launch a new primary healthcare center, which will allow the organization to expand its programming to reach more than 3,500 new patients annually.

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• In June, the Parsons provided $3 million in funding to support UMOM New Day Centers’ new affordable housing project for at-risk families in Phoenix.

• April was a huge month for Parsons. The Parsons Foundation donated a record-breaking $5.25 million to the Boys & Girls Clubs of Metro Phoenix, a transformational grant that will enable the clubs to continue their mission to better serve the needs of at-risk Valley children. In addition, Central Arizona Shelter Services was awarded a $1.4 million multi-year grant from the foundation for the renovation and operation of its Murphy Kids Dental Clinic. The clinic is the dental home for at-risk children in the Murphy School District in south Phoenix. The award will enable the pediatric dental clinic to triple its capacity over three years.

Giving back to the community is only going to continue for Parsons. Less than a year ago, Bob and Renee Parsons reinforced their commitment to philanthropy by publicly accepting an invitation to join The Giving Pledge, an initiative started by Bill and Melinda Gates and Warren Buffett. The pledge encourages billionaires to dedicate themselves to giving away at least half their wealth to philanthropic causes of their choosing.

“Timing and luck have been in our favor and we are profoundly grateful for our good fortune,” Parsons says. “We intend to donate at least half of our wealth – and likely much more – to non-profits which are making a difference and inspiring hope for the American Dream.”

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ARIZONA CORPORATE ANGELS

United Cerebral Palsy of Central Arizona

Mission Statement: UCP of Central Arizona provides comprehensive services to individuals with disabilities and their families by providing physical and developmental support, as well as educational growth which is the foundation for independent living.

To contribute: Donations can be made at your neighborhood Circle K stores in the coin collection cannisters.

To volunteer: Volunteers, interns, peer mentors, administrative work and help with special events are always needed.

Achievements: Created and oversees the successful Cafe Without Limits, a snack bar and retail store that provides job skills training for adults with disabilities. UCP now accepts insurance for therapy services including speech, physical, occupational, and feeding therapy.

United Cerebral Palsy of Central Arizona 22601 N. 17th Ave. Phoenix, AZ 85027 Phoenix, AZ 85027 (602) 943-5472 ucpofcentralaz.org

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ARIZONA CORPORATE ANGELS

ASU Foundation

Mission Statement: The ASU Foundation exists to ensure the success of Arizona State University as a New American University.

Did you know?

In fiscal year 2013 the ASU Foundation provided $35 million in student support from financial aid.

How to help: Your support of ASUâ&#x20AC;&#x2122;s schools, colleges, units and programs further the universityâ&#x20AC;&#x2122;s mission of educational excellence, comprehensive access and community impact. Gifts take the form of endowments, scholarships, annual gifts and estate gifts. They create research centers, partnerships with other universities and institutions, sustainability programs and more.

ASU Foundation for A New American University 300 East University Drive, P.O. Box 2260 Tempe, Ariz. 85280-2260 480-965-3759 asufoundation.org

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ARIZONA CORPORATE ANGELS

Special Olympics Arizona

Mission Statement: Special Olympics Arizona provides year-round sports training and competition in a variety of Olympic-type sports for children and adults with intellectual disabilities, giving them continuing opportunities to develop physical fitness, demonstrate courage, experience joy and participate in their communities.

How to help: You can make a difference for children and adults with intellectual disabilities.

Donate time, talents or treasure. Volunteer as a coach or day-of-event helper. Participate by becoming a Unified Partner. Shop cool Special Olympics gear.

Did you know?

91 cents of every dollar donated to Special Olympics Arizona goes directly to support programs?

Visit us online at www.SpecialOlympicsArizona.org 2100 S. 75th Avenue Phoenix, AZ 85043 602.230.1200 www.SpecialOlympicsArizona.org

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Great Service, Great Cause, EVERYBODY WINS.

This year is Parker and Sons 40th anniversary and we decided we should celebrate!

Our employees decided the best way to celebrate was to give back to the community. With that in mind, Parker and Sons has teamed up with the Special Olympics to make a big difference in the community and many people’s lives. Over the course of this year, and on behalf of our customers, Parker and Sons will donate to Special Olympics Arizona:

$25 for each AC system or water softener we install $5 for every maintenance or repair call we perform With the help of our customers, our employees, and the Arizona Diamondbacks, we look forward to this exciting opportunity and hope to contribute more than $400,000 to Special Olympics Arizona. We have raised $250,000! When you use Parker and Sons, you are supporting a great cause and helping us reach our goal of donating $400,000!

• Heating • Cooling • Plumbing

• Drain Cleaning • Water Softening • Reverse Osmosis

602-2-REPAIR

Phoenix - (602) 273-7247 • East Valley - (480) 963-1829 • West Valley - (623) 979-7011

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ARIZONA CORPORATE ANGELS

John C. Lincoln Health Foundation

The John C. Lincoln Health Foundation is grateful for our community’s generous help to help improve the lives of our most vulnerable residents. We’re particularly grateful to friends like APS whose gifts and volunteers allow us to help so many individuals in times of urgent need and in mapping out a more promising future.

Mission Statement: John C. Lincoln Health Foundation supports the healthcare and community service programs of the John C. Lincoln Health Network through innovative fundraising strategies and prudent investment of donations. The Network is a not-for-profit healthcare system that relies on charitable contributions to meet the community’s health and human service needs.

Did you know?

John C. Lincoln’s Desert Mission programs have been helping struggling North Phoenix individuals and families since 1927.

How to help: We rely on philanthropy to support not only the latest technology and expert care provided at our hospitals but also to lend a hand for our community’s most vulnerable members. You can help by making a gift, volunteering to pack emergency food boxes, or by holding a food drive.

John C. Lincoln Health Foundation 9100 N. Second St., Suite 301, Phoenix AZ 85020 602-331-7860 JCL.com/Foundation

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When APS employees see a need, they commit to action As the state’s largest utility company, APS doesn’t simply support Arizona communities, it connects with them.

At John C. Lincoln’s Desert Mission, you can find APS employee volunteers participating in the annual turkey distribution, adopt-a-family program or sorting, filtering and assembling food in the food bank.

APS’ more than 6,400 employees embrace every opportunity to strengthen and enrich Arizona and create a brighter future for us all.

Through volunteerism, in-kind support and philanthropic contributions, APS is a leading partner in the John C. Lincoln Health Foundation’s efforts to Change Lives and Save Lives.

Learn how your organization can make a difference.

Visit JCL.com/foundation.

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ARIZONA CORPORATE ANGELS

A New Leaf

Everyone Deserves a Home.

The La Mesita family homeless shelter provides emergency shelter for homeless families with minor children. These are working poor families who might otherwise be forced to live on the streets, in vehicles or in other substandard living conditions.

“I implore you to become involved in this wonderful and worthy cause…because together we can make a positive change for our community.”

Eddie Basha, original founder of the La Mesita Family Shelter Will you join us to help rebuild this important community resource?

Be a part of Eddie’s legacy. We need your help! Once completed, La Mesita will be a safe place to call home and a doorway to a better life for many Maricopa County families for generations to come.

A New Leaf 868 E. University Drive Mesa, AZ 85203 480-969-4024 www.TurnANewLeaf.org

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We put a premium on compassion.

Lovitt & Touché appreciates better than most that life can be unpredictable.

That’s why we are strong supporters of A New Leaf – currently in campaign to rebuild the La Mesita Family Homeless Shelter. Learn more about our commitment to community at lovitt-touche.com

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ARIZONA CORPORATE ANGELS

Playworks Arizona

Mission Statement: Playworks believes in the power of play to bring out the best in every kid. Playworks creates a place for every kid on the playground — a place where every kid belongs, has fun and is part of the game.

It doesn’t matter if they have never even played the game before, we ensure they have a place that is safe and welcoming, where they can play and thrive, belong and contribute. Playworks’ goal is to help every kid take this positive experience back to the classroom, back to learning, and back to their communities.

Did you know?: Playworks Arizona transforms recess by placing full time coaches at schools to teach the

kids how to play together, resolve conflicts through rockpaper-scissors, and how to be inclusive. The results are amazing, as bullying decreases, students feel safer and healthier, and students return to class ready to learn.

How to help: Playworks Arizona is looking for donations, sponsors and volunteers who are naturally motivated and possess clear and open communication skills. As a Playworks ambassador, you will mirror its core values of respect, inclusion, healthy play and healthy community, and have an opportunity to be a part of this important growing movement across the nation.

Playworks Arizona 2002 E. Clarendon Avenue Phoenix, AZ 85016 (480) 525-6566 playworks.org/communities/arizona

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THANK YOU to our amazing Partners

You Rock!

Arizona Cardinals Arizona Coyotes Chompies Fiesta Bowl First Western Trust Bank Flight Options Freddy’s Steakburgers GPS Insight Origami Owl Phoenix Suns Risas Dental Scottsdale 20 30 SICFIT Standard Aero Super Bowl Host Committee United Healthcare ZMC Hotels

UPCOMING EVENTS

Visit www.playworks.org/arizona Don’t miss the Run the Runway April 4th, 2015

ARIZONA

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2014 30 YEARS OF EXCELLENCE

Arizona Forward

Moving Arizona

forward Economic growth and the movement toward healthy communities go hand-in-hand

B

y the time you’re reading this, the election may be over – no more TV ads, random phone calls and finger pointing. I’m guessing that’s a relief to most of us!

Here’s something inspiring to think about.

Through all the campaigning of the past year, many Arizonans throughout the Grand Canyon State were busy working on solutions to complex natural resource issues in bipartisan circles comprised of diverse interests and industry sectors. They represent large companies and small businesses, cities and towns, educational institutions and a host of concerned citizens.

Their common denominator is a shared interest in advocating for Arizona’s environmental quality and economic vitality.

They are the voice of balance. And, they’re delivering their holistic sustainability message through Arizona Forward.

Now celebrating 45 years of operation, Arizona Forward is the state’s oldest new organization, Diane Brossart having just taken its mission Arizona Forward statewide last year. Four major counties are now involved, including Pinal, Pima, Coconino and Maricopa. The high level support of Apollo Education Group, Inc. /University of Phoenix and founding participation of Arizona State University is now bolstered by new participation from the University of Arizona and Northern Arizona University. The historic association of the city of Phoenix has expanded to new involvement by the cities of Tucson, Casa Grande, Gila Bend, Sedona and Jerome, as well as the Town of Clarkdale.

But Arizona Forward is first and foremost a business-based organization. Its members understand that economic growth and environmental excellence go hand-in-hand. Not only can you have both but sustainable design depends on it.

Over the past four-and-a-half decades, Arizona Forward’s basic agenda hasn’t changed much. It includes land use planning and open space; transportation and air quality; water; canalspace; energy; and a newly added area of focus in healthy forest ecosystems. All of these efforts fall under the umbrella theme of “healthy communities.”

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There are no signs stating it, but this organization has had a significant influence, from the revitalization of Rio Salado in its early years to a Canalscape initiative that embraces the Valley’s vast network of canals as place-makers. And from ribbons of freeway to light rail transit connecting Valley communities and a new streetcar in Tucson, Arizona Forward and Valley Forward before it has been there. But there’s much more ahead.

Unprecedented droughts and growing human demands on the Colorado River Basin have highlighted the vulnerability of Arizona’s water supply. The hardest-working river in the West was recently named the No. 1 most endangered river in the nation. This dramatic reality opens the door to real conversation about essential changes in water policy, conservation and sustainability.

Our state’s forests are critical to the water supply of millions of Arizonans, billions of dollars of agricultural production and vast economic activity. We have to work together to reduce the risk of wildfires, proactively treat our forests and protect our watersheds. Preservation of forests and grasslands is the key to preserving the water cycle, biodiversity and our way of life.

New regulations proposed by the Environmental Protection Agency’s proposed “Clean Power Plan” pose serious challenges for Arizona. Carbon pollution standards for the electricity sector forces an energy transition in 2.5 years or less, and Arizona must achieve more emission reductions than any other state by 2020.

Indeed, the movement toward healthy communities is evolving across the globe. Arizona is no exception.

Arizona Forward is dedicated to convening public and private sector influencers from around the state to encourage healthy community initiatives. We’re helping to mentor the next generation of stewards through our EarthFest Educators Night program for K-12 teachers.

We believe it’s every Arizonan’s responsibility – regardless of political affiliation, industry sector or demographics – to be vested in making our state the best place in America to live, work and recreate.

Diane Brossart is President and CEO of Arizona Forward.

ASU tuition is among the lowest in the nation What does that mean?

• It means that over 80 percent of ASU students receive $1 billion in financial aid every year.

• It means that ASU is an excellent investment at an affordable cost.

• It means that our students graduate with less student debt than most in the nation, empowering them to pursue a better life with the education and experience they've gained at ASU.

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Arizona Forward

Creating an

urban oasis Canalscape project aims to transform canals into a hotbed for recreation, socialization and connectivity By LORIN PARKHURST

W

ater-front property in Arizona that’s been 1,300 years in the making? Not in the foreseeable future. But Phoenix residents can expect attractive canal-front properties and attractions thanks to Canalscape.

The idea of transforming the Valley’s canal system into place-makers for recreation and social interaction is gaining significant traction. Arizona Forward has been working on a specific project along the Grand Canal within the school communities of Brophy, Xavier, St. Francis and Central High. The project involves a diverse group of stakeholders, including the City of Phoenix, SRP, ASU and the private sector. It will be a demonstration project for sustainable development engaging the canals.

“This project has been around for many years in various forms,” says Kerry Wilcoxon, traffic engineer for the City of Phoenix. “The vision for Canalscape came from the work of Arizona Forward. The plan for a contiguous series of street crossings was developed in parallel with Phoenix Streets. Canalscape was also widely discussed during the recent REInventPHX community charrettes. The City of 116 AB | November-December 2014

PHOTOS BY SHAVONRose, AZ BIg MEDIA

Phoenix and Arizona Forward are now working on the project together.”

This important initiative presents a significant opportunity to boldly shape our environment. Canalscape uniquely intersperses urban vitality into our majestic landscape, offering an alternative to sprawl, quality places to gather, beautiful and comfortable recreational corridors, alternative transportation routes throughout the region (walking or biking instead of driving) and homegrown non-polluting energy for local use.

“The goal of the project is for our canal system to re-emerge and re-appear in the urban landscape as a vibrant, accessible, safe and inspired urban ecosystem services corridor — water, wildlife, nature and people,” says Lynette Pollari, owner of Thompson + Pollari, Planning and Architecture and chair of Arizona Forward’s Canalscape committee.

Blueprint for success

Cities including San Antonio (5 miles), Indianapolis (3 miles), Oklahoma City (1 mile) and Venice, Calif., have

Lynette Pollari

Stephen Thompson

developed successful canal developments. “In San Antonio it can be said that the Riverwalk, a relatively short section of the San Antonio River, is the signature landmark of the city,” says Stephen Thompson, partner with Thompson Pollari Studio.

“Tourist income, especially in San Antonio, is significant.”

Thompson points out, though, that only Phoenix can boast over 180 miles of canals.

The Hohokam dug the first canals about 1,300 years ago to water their corn, beans and squash. Today, canals that are maintained by SRP were put there to bring water to thirsty acres of alfalfa, cotton, citrus and dates. Although there are a few pumping stations along the way, nearly all the system operates on the principle that water flows downhill.

“Phoenicians have to accept that the process of canal improvements must be entertained over many years and with the understanding that some portions of canal will prosper as thoroughfares,” says Thompson, “while other locations will form activity nodes responding to specific neighborhood development.”

According to SRP, there are currently about 51 miles of canal bank pathways throughout the Valley. These canal bank trails are primarily used as recreational trails. Although some

Chris Wass

Kerry Wilcoxon

have crossing treatments at street crossings — traffic signals, HAWKs (High-Intensity Activated crossWalK beacon) or crosswalks — many don’t. In addition, the roads many of the canal paths cross have relatively few cars on them. However, Wilcoxon ensures that the Canalscape project will have signals or HAWKs installed at each of the major street crossings to allow trail users to stay on the trail and eventually walk or bike all the way to Tempe Town Lake.

Making strides

“The City of Phoenix has made improvements to parts of the Arizona Canal near Sunnyslope and the Highline in south Phoenix,” says Chris Wass, founder of Firefly Real Estate and vice chair of Arizona Forward’s Canalscape committee.

“The canals that have been enhanced greatly contribute to neighborhood life, with residents and businesses alike embracing them.”

Wilcoxon adds, “The thing that makes the Canalscape project different is that we are designing a bicycle and pedestrian commuter trail that will allow people to use the canal banks and the street crossing points to get to and from work, school AB | November-December 2014

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Arizona Forward and shopping in the busy central core of Phoenix. The project focuses on connectivity with the light rail, transit, retail and neighborhood links throughout the project area.”

Residents can expect to see more and more energy and excitement about the project in the next several years. Residents can also expect to see new, exciting projects that are using the canal as an important amenity that can enhance development projects and fiscal sustainability. Pollari cites the O.H.S.O Eatery in the Arcadia neighborhood on Indian School as a prime example — it’s a modest restaurant that has become a community hot spot” because of the restaurant’s connection to the canal bank.

The first steps of the Canalscape project have been happening for several years, with great canal-oriented projects accomplished by the City of Scottsdale and other municipalities. According to Pollari, the City of Phoenix’s Canalscape Phase One will create a high visibility pilot project for enhancing the Grand Canal and its crossings. Inspired and safe crossings are a critical component of the overall plan.

Changing the perception

Thompson notes that nothing is inviting until you provide access and purpose to its course.

“Housing neighborhoods need to adopt positive frontage with canals and the pedestrian opportunities they represent,” he says. “Those who fear development should consider current research indicating that newly developed pedestrian thoroughfares experience dramatically reduced crime rates due to the added eyes of the public. Neighborhoods are more prone to success when they are linked to adjoining neighborhoods with transportation and pedestrian pathways that allow for differing local signature qualities.”

The canals in many parts of the valley have been forgotten and have become a refuge for homeless people and a convenient place to dump trash. One of the goals of the Grand Canalscape is to drive pedestrian and bicycle traffic to the canals. For this project to be a success, experts say we have to improve how the canal banks look and how people perceive them.

The Grand Canalscape Project will focus energy in Phoenix and beg comparison to other positive developments, such as Tempe Town Lake or the Scottsdale Waterfront. Once all of the local

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municipalities are engaged, the tide will turn, experts predict.

Pedestrian use will increase dramatically and successful venues along the canal length will become commonplace.

“We will also be lighting them with a string of dusk to dawn pedestrian lights to make them more attractive to commuters and neighborhood residents and less so to people who do not want to be seen,” claims Wilcoxon.

Paying for the project

The City of Phoenix Street Transportation Department recently announced it secured $4.2 million from Salt River Project’s Municipal Aesthetics Program to design and construct a multi-use trail and street crossings along the Grand Canal in the Uptown (15th Avenue to 16th Street) and Gateway North (Garfield to Van Buren streets) corridors. This project represents Phase One of the Grand Canalscape Project as conceived by Arizona Forward. The funds have historically been used for under-grounding power lines, but recently the program was expanded to allow use of the funds for Canalscape projects like this.

“This seed money will set the tone for all facets of future canal development, within the Canal right of way,” Thompson says. “This includes fencing, lighting, signage, landscaping, bridges, pathways and street crossings. The effort will be seeded in neighborhood involvement and the development of partnerships along the canal length. Already, several schools along the Grand Canal are engaged in this dialogue, creating a constituency that can speak to their own needs along the canal.

Future development should become neighborhood-based.”

Wass predicts, “This stretch of the canal will become vibrant connective tissue with increased utilization both for recreation and transportation. The experience of being on the canal will be that of an urban oasis — tranquility with a distinctly urban buzz.”

Wass expects the project to transform the image the image of both the canals and the city they serve.

“I believe the entire network of canals will become an iconic element for Phoenix,” he says, “something Phoenix will become known for throughout the world. The combination of rich historical significance and the important role canals play in making life in the Valley possible will give rise to something that is unique to this region.”

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Arizona Forward

The

roaD to success Improving transportation infrastructure is the key to greater job creation and economic development, experts say By EMILY GERSEMA

a

sk an Arizonan what improvements need to be made in transportation, and you will likely hear complaints about potholes on city streets, highway and freeway traffic congestion, late buses or a lack of bike lanes.

David Skinner, area operations manager for the engineering and construction firm HDR, hopes he and other transportation advocates can persuade Arizonans to think much more broadly about transportation issues beyond what they experience on a day to day basis commuting to work or the grocery store.

“Arizona can’t look at (transportation) as just fixing an existing problem like congestion,” said Skinner, who also leads the transportation committee for Arizona Forward, the statewide nonprofit group focused on sustainable growth. “It’s about addressing the needs of the state.”

Everyone has a stake in transportation. Roads, freeways, freight rail and public transit are the backbone of job creation, business development, manufacturing and trade. Transportation investment has a high rate of return for local, state and national economies: Every $1 billion invested creates 36,000 jobs, adds $1.8 billion to the nation’s Gross Domestic Product (the measure of the nation’s goods and services), and generates more than $490 million in tax revenue, according to the American Public Transportation Association.

Arizona Forward, a group of statewide civic and business leaders focused on sustainable development, is working with stakeholders to advocate for Arizona’s transportation expansion and transit projects, at both local and state

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BE A PART OF SOMETHING BIGGER THAN ALL OF US.

Together, we can keep Arizona majestic. SRP is proud to help customers take action with programs focused on the environment. You can help reforest land destroyed by fire. Give the gift of solar to local nonprofits. Or purchase energy for your home from a local solar plant. After all, taking care of Arizona takes all of us. Thatâ&#x20AC;&#x2122;s why SRP is dedicated to ongoing environmental measures, including using a diverse mix of wind, solar, and other sustainable resources.

To learn what SRP is doing and how you can be a part of it, visit srpnet.com/environment.

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Arizona Forward levels. Through various community meetings and discussions with stakeholders in recent years, the organization has found several points of agreements for prioritizing Arizona’s needs.

“If you start looking at these issues as political, they’re never going to get resolved,” said Diane Brossart, president and CEO of Arizona Forward.

“We try to take the politics out of it. We try to think of it as: What does it bring to Arizona in terms of economic impact, social impact? Then, I think people can rally around it.”

Interstate 11

One of Arizona Forward’s priorities for the state is Interstate 11, a 345-mile freeway that would link Casa Grande to Las Vegas, likely paved over what is now U.S. 93.

Of course, I-11 would ease the road trip for business and leisure travelers who frequent Vegas’s casinos and hotels. However, from an economic standpoint, the freeway would serve a much greater purpose, facilitating international trade and manufacturing, and creating jobs.

I-11 is one leg in a series of trade routes connecting several western states – the Intermountain West Corridor - to two of the United States’ largest international trading partners, Mexico and Canada. The interstate also is crucial for completing the “Golden Triangle” – the network of freeways connecting Arizona, Nevada and California.

How important is I-11 to the West?

An initial study shows that I-11 could generate up to $24 billion in economic benefits - trade and job creation - over a 25-year span while also generating travel benefits of nearly $40 billion.

This year, Congress recognized I-11’s potential value and deemed the project a priority for the Intermountain West Corridor, which is comprised of a web of freeways that stretch from the U.S.Mexican border northward to the U.S.-Canadian border. Arizona benefits from this trade network due to its location.

An estimated $19 billion in U.S. products such as aircraft engines and parts, circuits, copper and cotton were exported via Arizona in 2013, according to trade data maintained by the U.S census. Arizona last year also imported a nearly equal amount of products, from aircraft and semiconductor device parts, to tomatoes and peppers.

Most imports come from Mexico, China, Canada, Japan and Malaysia.

Traffic bottlenecks, delays in shipping and other difficulties with delivery are chief considerations for manufacturers as they study whether to open new facilities or relocate existing ones to other states, said David Martin, president of the Arizona Chapter of General Contractors.

He noted that several manufacturers are building and assembling parts in different locations and different countries, instead of maintaining a single location as their manufacturing and assembly stronghold.

“A system that allows manufactured products to be delivered is extremely important,” Martin said. “Otherwise, you have companies like Gore (W.L. Gore & Associates) coming down from Flagstaff to Phoenix because of issues they’ve

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had with traffic on Interstate 17. Transportation is really the pinch-point for our success for attracting manufacturing jobs here.”

Arizona Forward’s mission is to advocate for sustainable development. Adding roads can increase traffic, pollution, and threatens ecosystems while increasing trade, unless plans include the addition of passenger transit and careful use of existing roads and corridors, said Janice Cervelli, dean of the University of Arizona’s College of Architecture and Landscape Architecture who is chair of Arizona Forward’s board of directors. Plans for I-11 must include high-speed rail, she said.

“We’re looking at land conservation and wildlife corridors and at how we can take advantage of existing infrastructure like Interstate 19,” Cervelli said. “The next important step for I-11 is to do an environmental assessment.”

Transit systems are largely a municipality issue that can reduce stress on state and local roads and railways. Reducing commuter traffic on freeways that trek through Arizona’s largest metropolitan areas requires city and regional planning and investment in passenger rail, buses, and roads.

Local transportation

Phoenix City Council has convened a group of 34 business and community leaders for the Citizens Commission on the Future of Phoenix Transit, which includes Brossart of Arizona Forward, as well as Mary Peters, a former secretary of transportation under President George Bush Sr. The group started meeting in September, and the council has assigned it to complete a series of recommendations for transit and transportation spending and improvement by the end of November.

Martin Shultz, a commission co-chair and longtime lobbyist in the Phoenix area, said the most difficult hurdle facing any city and state with transportation is funding.

The recent recession drove Arizona to dip into its Highway User Revenue Fund – a large transportation fund comprised of gas and other user taxes - to backfill other spending priorities.

Grant opportunities and other federal funds also have waned, which, Shultz said, is forcing cities such as Phoenix to include in their planning discussions any ideas for potential funding.

Phoenix’s road maintenance budget suffered during and after the recession. Several roads and streets are deteriorating. At the same time, Phoenix wants to expand the light rail westward from 19th Avenue into Glendale.

Unless the city devises a series of funding sources to support these road and rail improvements, transportation conditions will worsen, which will also impact freeways through the Phoenix metro area.

Shultz said he hopes that by the end of this year, the commission will have recommended a series of options that the city could pursue for new funds for transit and roads. Those options could include voter-approved sales taxes, and public-private partnerships.

Diane Brossart

Jan Cervelli

David Martin

Martin Shultz

David Skinner

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Arizona Forward

Hot topic A Wildfires impact not only Arizona’s landscape, but our water supply and economy By ETHAN FICHTNER

rizona is home to the largest contiguous ponderosa pine forest in North America, with a single stand stretching from near Flagstaff all the way to the White Mountains of the east.

And in the last 10 years, 25 percent of it burned, said Patrick Graham, Arizona state director for the Nature Conservancy.

Fire suppression and subsequent cleanup costs have risen far beyond estimated prevention costs, according to studies by the Nature Conservancy, Sierra Nevada Conservancy, the U.S. Forest Service and the Ecological Restoration Institute (ERI) at Northern Arizona University (NAU), among others.

The tourism industry in Arizona, an estimated 20 percent of the state’s economy, is largely dependent on the health of forested lands and other wildlife preserves, a 2007 report by the Governor’s Health Oversight Council stated.

But “wildfires affect the entire state — not just the north,” said Eric Marcus, executive director at the Northern Arizona Sustainable Economic Development Initiative.

A full-cost economic analysis of the 2010 Schultz fire outside of Flagstaff by the ERI revealed the deeper effect of forest fires.

More than 15,000 acres of forest were burned, causing an estimated $147 million in economic damage, the report found.

An investment of only $15 million could have prevented this catastrophe, said Marcus.

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Fire and water

But most of the damage from these wildfires occurs after the fire has been extinguished.

When major wildfires remove the trees and grasses necessary for holding soil in place, a once standard rainstorm can now cause dangerous floods and massive erosion, filling up the reservoirs and ultimately decreasing the carrying capacity of our water supply, said Bruce Hallin, director of water rights and contracts with the Salt River Project.

“These catastrophic wildfires go in and the fire burns so hot that it burns everything,” said Hallin. “It turns it into this wasteland.”

But nothing can hold back sediment from flowing directly into the water supply if a fire were to ignite downstream from the reservoirs, such as the Sunflower fire in 2012. If ash-laden water were to be delivered to processing plants, treatment costs would increase dramatically, thus increasing the price of the water, said Marcus.

The 2002 Hayman fire in Colorado deposited more than 1 million cubic yards of sediment into Denver’s primary drinking water supply. To this day, cleanup is still underway to restore Strontia Springs Reservoir, with costs exceeding $150 million.

“Ultimately, through forest thinning, we don’t want to get to that point,” said Hallin.

One century ago, Arizona’s northern forests were more akin to open grasslands interspersed with towering ponderosas.

Ignited by lightning, the grass beneath the trees would carry a smoldering fire along the ground, burning the young trees while only charring the thick bark of the older, more established ponderosas.

million acres of forested land within 20 years.

However, almost no thinning has taken place in nearly five years since the initiative began.

Need for thinning

“Forest lands have been managed for the last 20 years through litigation and attorneys, not projects,” said Hallin.

Because of these legal barriers, Northern Arizona’s timber industry has all but vanished. So even the lands that have been approved for thinning cannot receive the treatment prescribed because there is no longer any industry to do the work, he said.

“You can make money with big old trees, but we don’t want those trees taken out of the forest,” said Marcus. Private enterprise doesn’t want to invest because no money can be made from the small diameter trees, he said.

The only way to thin the forests in a timely manner is through convincing industry that their investment will not be inhibited by litigation because the federal government can’t do it by itself, Hallin said. “The fact of the matter is, without a successful forest products industry, that entire forest is going to burn.”

SRP, in conjunction with the National Forest Foundation, has created the Northern Arizona Forest Fund, enabling individuals and businesses to invest in restoring the lands that provide them water.

“We don’t need to do more research to know what our problem is; we need to generate public interest in fixing things,” said Marcus.

“You can pay me now, or you can pay me later. But if you pay me now, you pay me a fraction of what you’re going to pay me later and have nowhere near the devastating effects that you’re going to have down the road.”

But Arizona’s northern forests have “all departed from the way they were historically,” said Diane Vosick, director of policy and partnerships at ERI. When grazing came through in the late 1800s and removed all of the grass, fires could no longer move through the forest naturally. Bare soil — which resulted from result over-grazing — allowed the pines to germinate seeds more easily. However, when fires did ignite, the U.S. Forest Service fire policy at the time required any and all fires to be extinguished. This fire policy went unchanged until 1995, allowing millions of young ponderosas and other vegetation to crowd the once-thin forest.

A study conducted by ERI Director Wally Covington found that historically, Arizona’s ponderosa forests contained roughly 25 trees per acre. But now, one acre of forest can contain more than a thousand trees.

“You’ve basically got a big wood pile out there waiting to burn,” said Vosick.

SRP, the water supplier for more than half of Phoenix and nearly all of Tempe, manages eight reservoirs deep within Arizona’s northern region.

“That’s the goal,” said Vosick. “You want fire to do its natural role and to help manage the forests.”

The Four Forest Restoration Initiative, or 4FRI, is a collaborative effort comprised of residents, industry, and the government to restore the Coconino, Kaibab, Apache-Sitgreaves and Tonto national forests through thinning and prescribed burning.

Vosick said that 4FRI hopes to have thinned at least 1

Wally Covington

Patrick Grahan

Seeking a solution

Bruce Hallin

Eric Marcus

Diane Vosick

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