AzBusiness Magazine November/December 2015 by AZ Big Media

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NOVEMBER // DECEMBER 2015

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Will governor’s business background pay dividends for Arizona?

CFO OF THE YEAR

ARIZONA BANKERS ASSOCIATION

ARIZONA FORWARD

SALVATION ARMY

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Table Of Contents 6

Up Front

Cover Story

Season shines spotlight on those who give back

18 Healthcare 22

Law

26 Tourism 30

Marketing

32 Technology 34 Dining 36

Party Planning

CFO of the Year

Arizona Bankers

Association 89

Arizona Forward

105 Salvation Army

his is the season of giving. And you don’t have to look very far into Arizona’s business community to find individuals and organizations who will leave Arizona better than they found it. And you don’t have to look any farther than the pages inside this issue of Az Business to find companies that care. You’ll read about how the Valley of the Sun United Way has teamed up with dozens of businesses — including Wells Fargo, APS, JPMorgan Chase, Blue Cross Blue Shield of Arizona, Freeport McMoRan and CopperPoint Mutual — to launch an education initiative that seeks to better prepare students in the Phoenix School District for success from birth to career. You’ll also read about the banking industry in a special supplement about the Arizona Bankers Association. Read about how giving back to the communities the banks serve is weaved into the industry’s culture. And don’t miss learning about the Salvation Army, and how far it’s come in the 150 years since William Booth launched a mission to help feed the hungry and homeless who needed help in the abject poverty of London in 1865. I hope you enjoy this issue of Az Business. If you still need to make your holiday plans, check out the holiday planning guide inside this issue. Have a wonderful holiday season.

Michael Gossie Editor in chief michael.gossie@azbigmedia.com 2

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SHOUT-OUTS Thriving Together helps Arizona kids succeed from birth to career By JADE FRAZIER

he Valley of the Sun United Way has teamed up with dozens of local organizations, businesses, schools and nonprofits to introduce Thriving Together, an education initiative that seeks to better prepare a quarter million kids in the Phoenix School District for success from birth to career. With the aim of closing the opportunity and achievement gap, Thriving Together measures what matters, identifies what works and shares those practices throughout schools in Valley communities. Thriving Together was established in 2013 with partners that include Wells Fargo, APS, JPMorgan Chase, Blue Cross Blue Shield, Freeport McMoRan and CopperPoint Mutual. Top executives from those six companies serve on the Thriving Pam Conboy Together Leadership Council. Wells Fargo has contributed $250,000 to Thriving Together over the past two years. “We invest in education because we understand how important it is to be career ready,” said Pam Conboy, lead regional president of Wells Fargo. “It is an investment in the future leaders who will represent our nation.” Wells Fargo leadership takes on a unique involvement with the students who are impacted by the program. The students live within the boundaries of 83rd Avenue and 68th Street, and south of Northern Avenue to South Mountain Park in Phoenix. “Wells Fargo team members volunteer their time, talents and services by sharing knowledge, reading and personally tutoring students within the schools,” Conboy said. As the initiative began, its work focused on four key areas‚ third-grade reading, eighth-grade math, high school graduation and college enrollment and attainment. “Thriving Together is a terrific collaborative effort between the public sector, private sector and the nonprofit community to help improve students’ educational results and put them on a path to success,” said Lori Brown, Wells Fargo communications consultant and Thriving Together volunteer. “This program not only benefits students, but also our community and our state by ensuring that we have a better-prepared workforce to drive economic growth.” To sign up for collaborative action team and for more information, visit thrivingtogetheraz.org.

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President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Editor: Amanda Ventura Staff writer: Meryl Fishler Interns: Laura Burnett | Lauren Holly | Kellie Holt Contributing writers: Jerrod Bailey | Alison Bailin Batz Cheryl Hurd | Jade Frazier | Chad Johnson Samantha Pouls | Steven G, Zylstra ART Art director: Mike Mertes Graphic designer: Ana Richey Video intern: Zakiya Moore DIGITAL MEDIA Account managers: Kerri Blumsack | Bailey Young Web developer: Eric Shepperd Digital coordinator: Robin Sendele MARKETING/EVENTS Marketing & events manager: Heidi Maxwell Marketing coordinator: Lorin Parkhurst OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson AZ BUSINESS MAGAZINE Senior account manager: David Harken AZRE | ARIZONA COMMERCIAL REAL ESTATE Directors of sales: Jeff Craig AZ BUSINESS LEADERS Director of sales: Sheri Brown RANKING ARIZONA Director of sales: Sheri King EXPERIENCE ARIZONA | PLAY BALL Director of sales: Ann McSherry CREATIVE DESIGNER Director of sales: David Silver 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 2015 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.

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UP FRONT

Transitioning workplace T

Most office workers fear the phone

How should businesses deal with transgender issues in the office? By LAUREN HOLLY

ith Bruce Jenner transitioning into Caitlyn Jenner and “Transparent” cleaning up at the Emmy Awards, transgender issues have taken the spotlight in pop culture. It’s only a matter of time before the issue arises in more workplaces. Anne Tiffen, a member at Dickinson Wright whose practice focuses on advising and defending employers in employment related law and litigation, said the most common concern is the bathroom. “The most common question is, ‘Can the employer force the employee to use the restroom of their biological birth sex?’” Tiffen said. The simple answer is “no.” “The EEOC and OSHA have taken the Anne Tiffen position that an employer may not require employees to use the restroom of their biological and/or birth sex,” Tiffen said. “This means the employee determines when the switch is made because it would be difficult for the employer to make that determination without asking questions it has no right (under the ADA, HIPAA and various privacy protections) to ask.” Due to the complexity of the issue, businesses need to have an appropriate plan in place to maintain a healthy work environment. Tiffen recommended the following: • Add sexual orientation, gender identity and gender nonconformity to nondiscrimination and anti-harassment policies. • Establish procedures for adjusting personnel records, including using the correct pronouns. • Provide training for management and the general workforce. • Create a gender-neutral or single-user restroom, if possible. • Consider changing gender-specific dress codes to the extent that they may infringe on the rights of transgender employees. 6

AB | November - December 2015

his is a shocking statistic, especially when you look around a restaurant and see a majority of the patrons paying more attention to their cell phones than their dining partners. A recent study by TollFreeForwarding.com found that nearly half of office workers have reservations about using the phone as oppose to e-mail in an office environment. When asked why workers are so reluctant to talk on the phone, they gave the following reasons: • Worrying about getting bad news • Feelings or symptoms of anxiety • Confrontation and fear of rejection • Worrying about potential misunderstandings • Fear of being misheard • Nerves • Not being able to communicate effectively • Forgetting things It might be an age thing. More than 70 percent of workers 24 and under are fearful of the phone, while only 35 percent of those 55 and older share the fear. Researchers say the biggest concern is that telephonophobia could be a hindrance to business and could impact revenue.

Healthy job prospects

imply Hired, the largest independent job search engine, said job listings have seen eight consecutive month of growth. Healthcare is driving significant hiring gains as one of the strongest contributors to the U.S and Arizona labor markets. The industry accounts for 14.2 percent of all job listings, compared with 9.3 percent for the tech sector. Want proof? Here are the top hiring companies in Phoenix, ranked in order:

1. Banner Health 2. Dignity Health 3. HonorHealth 4. CVS Health 5. PetSmart

AB | November - December 2015

UP FRONT Tips to design an efficient workplace By MERYL FISHLER

few simple tweaks to the design of an office space can make all the difference when it comes to employee productivity. Mesa-based ESI Ergonomics CEO Carol Keogh has launched a national campaign called “Workspaceology,” which focuses on the science of workplace design as it relates to company culture and how designing a workplace that fits employee needs can lead to higher productivity and talent retention. Keogh’s campaign hopes to raise awareness among business owners about the importance of employee wellness and happiness, which in turn makes them better employees. The key, Keogh said, is to focus on adaptive workspaces that cater to individual’s needs, while fulfilling non-work-based necessities through wellness programs. “Having the option to easily modify the workstation for sitting and standing is important,” Keogh said. Additionally, she said it is important for employees to have the option to control noise or distractions, Carol Keogh to have the option for a quiet workspace and

Vonage keeps a calm culture A

change in ownership doesn’t mean a change in workplace culture. A year after Scottsdale-based Telesphere Networks Ltd., an industry-leading provider of Unified Communications-asa-Service (UCaaS) solutions for businesses, agreed to be acquired by Vonage Holdings Corp. for $114 million in cash and stock, the company repeated as one of Arizona’s Most Admired Companies in September. The company also earned a Most Admired Company award in 2014. Clark Peterson, who is the top local executive as president of Vonage Business Solutions Group, led Vonage to another MAC win by utilizing a “culture team” to invigorate the workplace and maintain a fun, positive working atmosphere. The Clark Peterson culture team is comprised of employees from every department. Culture team events include Sumo wrestling (complete with suits and wigs), pie-eating contests, bring your kids to work day, ice cream socials and more.

AB | November - December 2015

to have a place to collaborate. Keogh also stresses the importance of proper lighting to create a better work environment. She said a lot of natural light is the best, but the best alternative is LED lighting.

Arizona women are middle-market leaders

rizona has an estimated 2,051 middle-market firms, of which 135 are owned by women and 106 are owned by multicultural proprietors, according to the “Middle Market Power Index: The Growing Economic Clout of Diverse Middle Market Firms” report from American Express and Dun & Bradstreet. The report analyzed middlemarket enterprises, which are defined as businesses generating between $10 million and $1 billion in annual revenues. The analysis found that Arizona has a greater than average share of middle-market firms owned by women – 7 percent compared with the national average of 6 percent.

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AB | November - December 2015

UP FRONT

Engineering a global impact By SAMANTHA POULS

group of engineering students from Arizona State University are donating a dental unit to Nicaragua and dismantling a stereotype in the process. Students from Ira A. Fulton School of Engineering and the Herberger Institute for Design and the Arts are teaming up with IMAhelps to create a mobile dental unit that will travel to Nicaragua. The five students involved in the project — four females and one male — call themselves Engineering Smiles. “I’m one of 10 girls in my class,” said Sara Mantlik, an ASU senior and the project director. “When I tell people that I am an engineering major, they automatically look surprised ... I can tell they are surprised because I’m not as nerdy as they thought.” The mobile dental unit will require $180,000 to complete. Mantlik hopes to have $60,000 raised by December. “I never learned any of the things we have had to do for this project in class,” said Mantlik. “Learning how to create a design layout and talking to so many people are helping me prepare for my future career.” Mantlik discovered the project through ASU’s Engineering Projects in Community Service. Engineering Smiles hopes to have the unit completed by May 2016 so that it can be used to train

MAKING A DIFFERENCE: Sara Mantlik, far left, is project director of Engineering Smiles, a team of ASU engineering students that is designing a mobile dental clinic that will be used to treat patients in Nicaragua.

students and provide services in Phoenix. After a few test months, the mobile dental clinic will be taken to Nicaragua and will offer free examinations to locals, as well as function as a tool to train Nicaraguan students. “I really wanted to do something that would make an impact internationally, but I never thought I would learn how to create a plumbing system,” said Mantlik.

Leading the way in diversity

T Nicole Stanton

he Arizona Diversity Council honored Quarles & Brady with its first Corporate DiversityFIRST Leadership Award. Quarles is involved in a host of initiatives, internally and externally, that place significant value on and demonstrate its commitment to diversity and inclusion. “Diversity and inclusion are at the heart of Quarles & Brady’s everyday efforts in mentoring and developing exceptional attorneys, as well as weaved into our business practices,” said Nicole Stanton, Quarles & Brady Phoenix office managing partner.

AB | November - December 2015

Help with insurance questions

o you feel overwhelmed every time open enrollment comes around and you have no idea what deductible, network or formulary means? To help answer those questions, Blue Cross Blue Shield of Arizona unveiled Get In! – AZBlue.com/GetIn – a free online resource to help when buying insurance. The site offers tips, checklists, frequently asked questions and more to help Arizonans understand their health plan choices.

Holidays PIXAR IN CONCERT

2015 WITH THE PHOENIX SYMPHONY!

November 27, 28, 29

Kick off your holiday season with the whole family during Thanksgiving weekend with Pixar in Concert. From the Toy Story trilogy to The Incredibles and Up, Pixar Animation Studios has forever impacted filmmaking and given audiences of all ages some of the most beloved characters in cinematic history. The Phoenix Symphony presents Pixar in Concert, with visually stunning film clips projected on screen while The Phoenix Symphony plays the memorable scores from each of Pixar’s movies, including its latest release, Monsters University.

HOLIDAY POPS

December 4, 5, 6

It’s the most wonderful time of year as the Valley’s most beloved holiday tradition, Holiday Pops, returns to Symphony Hall. Join The Phoenix Symphony and The Phoenix Symphony Chorus to experience this festive concert of seasonal favorites and the everpopular Holiday Sing-Along, guaranteed to put you and your family in the holiday spirit.

HANDEL’S MESSIAH

December 9 – 13

Handel’s massive oratorio makes a profound musical statement of the Christian faith, celebrating the life, death and resurrection of Jesus Christ. The acclaimed and popular “Halleluiah” chorus highlights this spiritual concert. Join Music Director Tito Muñoz as he leads the Valley’s favorite holiday tradition as The Phoenix Symphony, The Phoenix Symphony Chorus and soloists perform Handel’s Messiah in churches and venues throughout the Valley.

NEW YEAR’S EVE

December 31

End the year on a high note with The Phoenix Symphony in the Valley’s most popular New Year’s Eve Celebration. Enjoy famous Strauss waltzes, seasonal classics and Broadway and contemporary favorites all with a complimentary glass of Champagne to celebrate the New Year. Don’t miss this joyous and popular musical celebration that is sure to sell out. Enjoy your choice of two special performances at 4:00 pm or 7:30 pm.

phoenixsymphony.org | 602-452-0423

AB | November - December 2015

COVER STORY

THE

SUN DEVIL

RISES Ducey says approaching politics like it’s a business will pay dividends for Arizona By MICHAEL GOSSIE

esting on a table in the center of Arizona Gov. Doug Ducey’s meeting room at the state capitol is an Arizona State University football helmet signed by Jake Plummer and Pat Tillman. “I am a proud Sun Devil,” Ducey gushes. But the state’s “first fan” can also boast about another first: Ducey is the first ASU graduate to go on to become governor. “That speaks to what a place of opportunity Arizona has become,” says Ducey, a Republican who was voted into office one year ago and succeeded Jan Brewer. “I lived in Ohio until I was 18 years old. When I came here, I didn’t know one person and had never been to Arizona. This became my home and this is also where I grew my business, Cold Stone Creamery. Arizona is a real place of opportunity and that theme of ‘opportunity for all’ was what motivated me to run for governor. I want people to see a better future for themselves in Arizona.” Az Business magazine sat down with Ducey to talk about his first year in office. 12

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DOUG DUCEY: “I want Arizona to have a reputation as an attractive place and I want to see it ever-improving compared with our neighbors,” says Arizona’s governor. “California is doing a lot to help us in the short term by pushing people and producers out of the state. We should take full advantage of that.” PHOTOS BY MIKE MERTES, AZ BIG MEDIA

COVER STORY Az Business: What is the biggest difference between being CEO of a business and being governor of Arizona? Doug Ducey: You get a lot of undeserved popularity when you’re selling ice cream. When you come into the government world, there is a focus on results like there is in the private sector, but government is often focused more on process than it is on results. One thing we’ve worked really hard on in terms of the culture we have in our administration is an important similarity between the private sector and the public sector and that’s the people you have involved. So whether it’s our senior staff, the agency heads we are naming, or the differences we’ve made in terms of naming a chief operating officer at the government level, it is all being done to make sure we have the right people in the right places and they’re focused on getting the right results. AB: How important was your business background in preparing you to be governor? DD: It’s been invaluable. Part of the problem with our system is career politicians. When some of my friends ask sheepishly, “How do you like it?” I tell them I really am having a blast. If you have the leadership bug, you should scratch it. I wish we had more people from the private sector who were involved in public life, but I don’t think politics is something you should do your whole life. The fact is that I’m here and this is the job I wanted — a chief executive role at the highest level of state government — and we are showing that we can get things done. I want to stay focused on that agenda. But whenever I am at a crossroads here or find myself stuck, it’s my private-sector training that I rely on, not what I see in government or from politicians across the country. AB: You recently traveled to Israel for an international conference on water technologies. What was your biggest takeaway from that trip? DD: Israel is doing so many things well from an innovation and entrepreneurship standpoint. Their neighbors are Lebanon, Syria, Jordan and Egypt.

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Everything they do, they have to be able to export. They have to be a little bit better and they have to be really focused on a sense of purpose every day. It was neat to see the history up close and it was interesting to see what a culture of entrepreneurship they’ve created. In many ways, they’ve rediscovered some of what we’ve forgotten in our country about entrepreneurship. AB: Are there things the Israelis are doing right from which we can learn? DD: They’re great at water. We’re very good at water, but they are the superpower of the world when it comes to water. They are a nation in the middle of a desert and they cannot rely on any of their neighbors. Water, cybersecurity and even the way they manage their airport security and border security are all things we can reapply to Arizona and our nation. AB: Should Arizona be worried about its water supply? DD: Arizona had to plan for water. California hasn’t given water a second thought. We are sitting in the fifth-largest city in the country in the middle of the desert. This is something Arizona has been very good at for a long time and I get to stand on the shoulders of giants who planned and put the policies in place and created generational projects like the Central Arizona Project, the Salt River Project and Roosevelt Dam. Part of what we were gleaning in Israel was what’s next in terms of water and water technology and what are the opportunities for Arizona with things like desalination. One of the speakers was a California assemblyman who said, “California is in the crisis it is in because we never gave this a second thought. We don’t even have water meters in Sacramento.” It was stunning and shocking to hear someone say that out loud, so they are in a real crisis. Arizona has 9 million acre feet (of water) in storage, the equivalent of enough water for 18 million households. We’ve planned ahead, but there will always be work to be done on water. But we’ve laid the groundwork and we have a bright future.

AB: What are Arizona’s greatest assets for growing the state’s economy? DD: We have a great quality of life here. Two-thirds of our people were born somewhere else and made a decision to call Arizona their home. I am one of those people. We have a great place to live, work, play, recreate, retire, visit, build a business and get an education. I want the rest of the country to see us for what we are and the governor can be a lead spokesperson for that. AB: How can we attract the best talent and best companies to Arizona? DD: You look at other states in other parts of the country and they are oftentimes turnaround projects. Some of these states are taking their largest cities through bankruptcy. That’s not the situation in Arizona at all. In many ways, we are an under-appreciated and undervalued asset. We need a better plan. We need a better promotion schedule in terms of how we communicate with the rest of the world. We are showing we have brought a lot of talent here. We want to make sure we are developing talent in our K-12 system and university system. I think we will be a state that continues to grow and enjoy net in-migration. I cannot think of a better leading indicator of a quality of life for economic attractiveness and we need to maximize that.

AB: State Republican leaders are proposing a $3.5 billion increase to school funding over the next decade. What does that mean to you? DD: What’s most important is that our kids are able to go to school and learn something of value that they can apply in the real world. So how do you get those outcomes and the right results? Part of this is resources. The most important thing in any classroom is the teacher, so I want to make sure teachers in Arizona feel respected, rewarded and we are retaining our best teachers. We are able to take these dollars, put them into the baseline formula and put more than $2 billion in additional fresh money into K-12 education in the next 10 years. That speaks to our commitment to our kids. We are able to do that without raising taxes and we are going to be able to follow reforms to show that we are getting results. That’s what most important — the results we get from this money. AB: You’ve put an emphasis on balancing the state budget. How do you view that goal after your first year in office? DD: The first job of any governor is to make sure he or she is protecting the citizens of the state and to make sure the state is living within its means and not writing checks that it can’t cash later on just for popularity or

“What’s most important is that our kids are able to go to school and learn something of value that they can apply in the real world.

AB | November - December 2015

COVER STORY positive political favors. We did have to make difficult decisions, but we are in a spot now because of those tough decisions where we have $233 million in a cashcarry-forward state. I don’t know how many other states are in that kind of positive cash flow position. In addition, we have a credit upgrade by S&P and Moody’s. These are real things that have consequences that will save our taxpayers, cities and counties money over time because they will be able to borrow dollars at a lower rate. We thought that (balancing the state budget) was job No. 1. We knew that would be a challenge to do, but we came in with the idea of financial responsibility and living within our means and we have the first structurally balanced budget since 2007 and we are going to keep it balanced. AB: In what sectors should Arizona be focusing its economic development efforts? DD: I get to talk with a lot of experts, but there are real no experts on what’s next or what the future is going to be. Look at the things we enjoy on our smartphones that we wouldn’t have imagined just a few years ago. But I think you want to play to your strengths. We are strong in aerospace and defense and we are strong in technology and that’s where the world is going, so you do want to focus on that. At the same time, you want to have a broad-based, attractive business environment that looks at things like tax code, regulatory issues and the burden around that, the amount of liability and litigation that’s going to be on the small business owner and the taxpayer, water, energy, infrastructure and political predictability so

business leaders don’t get the rug pulled out from underneath them. From this standpoint, Arizona is a very attractive place. AB: What legacy do you hope to leave as governor? DD: I think you want to leave the state better than you found it. We have big plans and big ideas as to what we can do in terms of being a leader nationally, economically, around innovation and in K-12 education. Those are things we want to do with this administration. If this is a place where people continue to come from other parts of the country and other parts of the world to find a better quality of life, that will tell us we have done our job. AB: Do you like any of the presidential candidates? DD: I like a lot of them. I think we have high-quality slate of candidates, but we need to get it down to four or five people and decide on a nominee. The polling reflects that people want to see a fresh approach — that outsider or business-like message that may be missing from our political discourse. I certainly saw that when I ran for governor. The idea that I came from the business community and built a local business was powerful, not only in terms of what I already knew and what was important to the voters, but also the idea of listening to the customer, in this case the taxpayer. I think you’re going to see a candidate emerge who taps into what is most important to Americans at this time. AB: Any aspirations for a higher office? DD: I’m 100 percent focused on being the governor of Arizona. We are in the first year here. I’m thoroughly enjoying it, but this is a big job and I’m 100 percent focused on it.

Ducey’s priorities Here are the issues Arizona Gov. Doug Ducey has established as priorities for his administration: Balancing the budget: Ducey inherited a serious budget deficit because Arizona is spending more than it can afford. After his election, Ducey formed a budget study committee to provide advice and recommendations on balancing the state’s budget. Just like Arizona families have had to balance their budgets, so will government. What Ducey said he won’t do is raise taxes on Arizona families and businesses, which would stifle economic growth and make our state less competitive. Equal access to education: Arizona has some great public schools, but Arizona’s children do not yet have equal access. Ducey is committed to ensuring parents have a choice of top-notch schools when deciding where their child should be educated. Ducey also wants to get

AB | November - December 2015

more money into the classroom – where learning happens. Growing the economy: A strong and vibrant economy is essential to an Arizona that will provide opportunity for all. Ducey wants Arizona to be the pace leader in the competition for the very best state in America to do business. A more competitive tax code will aid in attracting businesses already moving away from states like California and Illinois to Arizona.

Protecting communities: Ensuring Arizona’s communities are safe and secure is a priority for Ducey. His administration will be a partner with local law enforcement and the governor is committed to working with the state’s congressional delegation to ensure border enforcement authorities have the necessary resources to address Arizona’s security issues.

Industry Leaders of Arizona recognizes business leaders who through hard work and innovation think beyond traditional boundries and help lead the future of Arizona.

Legacy. Vision. Come meet the Industry leaders

Award Reception & Dinner Thursday, February 11, 2016 Chateau Luxe

This year we will honor Industry Leaders in: Healthcare • Hospitaltity • Logistics/Distribution Retail • Staffing Companies

events@azbigmedia.com | 602-277-6045

HEALTHCARE

Prognosis for progress New medical coding system will provide better data and better health outcomes By ALISON BAILIN BATZ

n October 1, major changes to medical coding were implemented that affect all healthcare facilities nationwide – not to mention the hundreds of thousands of students that enter the healthcare field each day. “This International Classification of Diseases, 10th Revision, or ICD-10, is a critical update to the former system in place, called ICD-9, and must be now be used by healthcare facilities including hospitals, dental and doctors’ offices, nursing facilities, psychologists, physicians and more to code every single diagnoses, symptom and procedure in the healthcare realm,” said Carmie Shepard, program director for Medical Billing & Coding at Carrington College in Mesa. According to Shepard, while it is not legally required for ICD-10 to be used in each healthcare facility, those seeking reimbursement from insurance companies must adapt to the new system no matter what.

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“ICD-10 makes medical coding a universal language, as it has already been adopted across the globe”

Benefits of ICD-10 The migration to ICD-10 – though seemingly tedious and time consuming right now – will result in several major improvements in the American and global health care systems. “ICD-10 makes medical coding a universal language, as it has already been adopted across the globe. As a result of this migration, critical medical information will no longer be lost in translation no matter where you might be,” says Shepard. “In addition, ICD-10 will give our nation the ability to report critical medical statistics at an exponentially faster rate than ever before.” Shepard also notes the perhaps two best improvements in ICD-10 over prior processes – specificity and infinite coding. “For example, let’s say you come into the hospital with a broken arm that requires surgery,” explains Shepard. “In ICD-9, we would simply be able to code a broken arm.” ICD-10, however, gives medical personnel the ability to specify which arm – meaning left or right – as well as the type of break it is to take away even the smallest chance of margins for error in the diagnosing, coding, billing or reimbursement process for everyone. The basic ability to allow for fewer gray areas in coding will also make it more difficult for those dishonest providers out there to hide behind ambiguities in code descriptions or rules. “ICD-10 also has another major benefit – infinite

space for creating new codes, whereas ICD-9 did not,” says Shepard. “Just think about how many new diseases, treatment protocols and medical techniques are adopted each year. Now, they will all live somewhere, since the system allows for coding growth.” In its simplest terms, ICD-10 will provide better data, which will not only provide better health outcomes, but enhance health policy decision making.

Instructing on ICD-10 Those already in the field have been working toward this migration for years. But, according to the U.S. Bureau of Labor Statistics, employment of medical records and health information technicians is expected to increase by 22 percent from 2012 to 2022. So, will this entire new generation of medical personnel be forced to start their education all over? “Absolutely not,” said Shepard. “Our program, for example, which prepares students for entry-level careers in medical records and health information in areas such as facility coding, tumor registry and insurance contracts, added ICD-10 to its curriculum in January 2015. Our faculty has been educated – and preparing to educate the students – on it for years.” In addition, Carrington College’s Medical Billing and Coding program in Arizona includes a 180-hour externship to gain hands-on real, world experience in working with ICD-10 in an actual medical setting beyond the classroom. AB | November - December 2015

HEALTHCARE

WHAT EXECUTIVES NEED TO KNOW Open enrollment provides opportunity for employers to evaluate coverage

s open enrollment draws near, Arizona companies are taking a close look at employee health coverage. Robust health benefits are crucial for attracting and retaining a talented workforce, but finding the right plan has become a complicated and often arduous process – and it’s not getting any easier. Now on the horizon, the Chad Johnson Affordable Care Act’s employer Healthcare mandate will be fully in force in January 2016, with stiff penalties for businesses that do not meet its requirements. To make matters worse, health insurers across the country are now seeking doubledigit rate increases. As a result, affordability and value have become the deciding factors for businesses choosing a health plan. In the scramble for market share, many health insurers are now selling plans that offer lower premiums in exchange for a limited network of providers. Called “narrow networks,” these plans meet the ACA’s criteria and are attractive for businesses choosing insurance based on cost, but there are serious tradeoffs to consider: It’s more than just price: As the old adage goes, you get what you pay for. Businesses need to evaluate cost alongside quality, access to providers, value and geographic convenience when choosing health coverage. Consider the worst-case scenario: Companies must consider the care their employees and dependents will – or will not – receive if disaster strikes. An employee facing a cancer diagnosis may not have access to the Valley’s best specialists if limited to certain narrow networks. It’s penny wise, but pound foolish: The low sticker price doesn’t account for expenses incurred when choices are so limited that employees must seek treatment outside the network or in a neighboring state. The limitations of narrow networks may ultimately result in higher health care costs for an employee or dependent. Relationships are important: Employees have personal relationships with their doctors and hospitals. They want their health plan to include the providers they know and trust. Choosing a network that cuts provider options could wreak havoc on company morale. 20

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For employees with dependent children, a health plan that includes Arizona’s best pediatric providers is critical. Phoenix Children’s Care Network (PCCN) offers access to more than 800 providers, including half of all independent pediatricians and the vast majority of pediatric subspecialists in greater Phoenix. Arizona’s only pediatric-dedicated clinically integrated network, PCCN also includes Phoenix Children’s Hospital – Arizona’s only “Best Children’s Hospital” as ranked by U.S. News & World Report – as well as primary and specialty care service sites, urgent care sites and surgery centers across the region. PCCN was established to drive down burgeoning health care costs without compromising the care Arizona’s children need and deserve. The network’s care delivery model uses value-based contracting as opposed to the standard fee-for-service. Tracking and reporting aimed at quality improvement and cost control are built right into the model, and provider reimbursement is tied directly to outcomes. Perhaps most important, the network is governed by its physicians, who have developed their own benchmarks for care and hold each other to a very high standard. Moreover, the cost of pediatric care makes almost no difference on health premiums, so excluding Arizona’s best providers does little to mitigate overall cost. Companies that include PCCN in their employee health plan will strike a balance between affordability and quality while providing employees and their children with a wide network of expert providers committed to and recognized for the very best care. Chad Johnson is senior vice president and executive director of Phoenix Children’s Care Network.

AB | November - December 2015

LAW

Puff, puff, pass

a policy

By MERYL FISHLER

wenty-three states and the District of Columbia have legalized marijuana in some form and that number is expected to grow. However, many business leaders have unanswered questions about how legal marijuana affects the workplace. In 2010, Arizona voters passed the Arizona Medical Marijuana Act (AMMA), allowing residents with specific medical conditions to be treated with marijuana for personal use. The problem for employers: marijuana laws are new and there is a lack of clarity about how these laws apply to workplace policy. “Employers are between a rock and a hard place because different laws tell them to do different things,” said Joseph Clees, a labor and employment attorney with Ogletree Deakins. AMMA prohibits discrimination because an individual is a medical marijuana cardholder, meaning employers may not refuse to hire, fire or discipline an employee or applicant solely because they are a card holder. However, an employer can discipline employees authorized to use medical marijuana if there is additional evidence that the employee possessed marijuana or was impaired while at work. Evidence of workplace impairment may include involvement in a workplace incident that appears to reflect negligence or carelessness, decreased coordination or dexterity, slowed or slurred speech, glassy or blood-shot eyes and/or a detectable marijuana odor.

Impact of screening

Medical marijuana also impacts drug screening as part of the application and hiring process, drug testing policy or having a zero-tolerance policy, said Beth Call, a labor and employment attorney with Steptoe & Johnson LLP. But can employers have a zerotolerance policy prohibiting any marijuana use? “Court cases are working their way through the process to figure it out,” said Russell Smoldon, CEO of B3 Strategies, a government relations and public affairs firm. Since medical marijuana is legal and a zero-tolerance policy would violate state

law, employers would likely be sued for discrimination, said Lindsay Leavitt, an attorney at Jennings, Strouss & Salmon. Five months after AMMA, the state legislature passed HB 2541 to provide more guidance about how to handle the application process and employment of medical marijuana patients. The bill provides protections for employers that employ for “safety sensitive” positions, which are jobs that include duties the employer believes in “good faith” might affect the safety and health of the employee or others. However, HB 2541 sparks debate because AMMA was an initiative passed by the people and any modification to this type of initiative legally must further the purpose of the original intent of the initiative. The original purpose of AMMA was to protect patients from penalties. Some believe this bill does not further that purpose. If so, the bill is unconstitutional. “The statutes enacted after AMMA gives employers immunity in decisions made concerning ‘safety sensitive’ positions,” said Thomas Dean, a marijuana reform attorney. If challenged in a court, Dean said it would likely be declared illegal, but that challenge has yet to be made.

Protecting the workplace

Even if laws change in the future, there are steps employers can take to make the situation less convoluted. Experts suggest that a company’s drug testing policy is in compliance with the Arizona drug testing statute to protect themselves from a civil lawsuit or discrimination lawsuit, Leavitt said. “Arizona employers should modify policy to comply with the state’s drug testing statute because it provides clarification and protection for medical marijuana at the workplace,” Clees said. To meet the criteria established by AMMA, experts suggest companies update their job descriptions to spell out which positions are safety sensitive. A company policy should clearly indicate that marijuana is still an illegal substance for a non-cardholder, said Michael Moberly, a shareholder and attorney at Ryley Carlock & Applewhite. According to AMMA, a positive drug test alone cannot be the reason AB | November - December 2015

LAW for disciplining a card holder, but a specific workplace event or evidence of impairment at work can allow an employer to take adverse action. Moberly suggests that company policy clearly states what types of events and evidence constitute taking action. Employers should also make sure their policy regarding drugs and alcohol is applied uniformly and not in a discriminatory manner, Leavitt said. Prescription drugs like hydrocodone and medical marijuana need to be handled the same, Leavitt said.

Beth Call

Joseph Clees

Thomas Dean

Lindsay Leavitt

Michael Moberly

Stephan Shearin

Russell Smoldon

Crafting a policy

When crafting a policy, some experts say companies need to remember the importance of workplace performance rather than what employees do in their free time. “Employees should be judged on workplace performance, not what they do on their personal time,” said Stephen Shearin, president and COO of Tempe-based American Green, the first publicly traded medical marijuana dispensary brand in the world. In addition, policy experts agree employers should provide guidelines about how supervisors and managers can apply the policy. Another factor a company needs to consider is if they have a federal contract, because then they must comply with the Drug Free Workplace Act. Under federal law, the act does not permit the use of controlled substances like marijuana in the workplace, Call said. Some employers have adopted an approach for medical marijuana similar to alcohol. These types of policies allow for offsite medical marijuana use but prohibits an employee from reporting to work impaired or bringing it onto the premises. “If you go out for happy hour on Thursday, it is highly probable that Friday you still have alcohol in your blood,” Sharin said. As long as your workplace performance isn’t compromised, he says, it isn’t an issue. He believes companies will save a lot of money and time if they look at marijuana the same way. However, “illegal drugs and alcohol under Arizona law have no protection for someone if it shows up in a test,” Moberly said, “but medical marijuana has more protection than alcohol, if you are a card holder.” 24

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Come next year, things may be changing again. If the Arizona Marijuana Legalization Initiative — which may appear on the Nov. 8, 2016, ballot — is passed, it would legalize the possession and consumption of marijuana for anyone 21 years of age or older. If passed, Smoldon recommends that Arizona companies look at company policy in states like Colorado or Washington where these types of laws already exist.

“Experts suggest that a company’s drug testing policy is in compliance with the Arizona drug testing statute to protect themselves from a civil lawsuit or discrimination lawsuit

TOURISM

Fresh is best: agritourism flourishes in the Valley of the Sun

By KELLIE HOLT

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n a time when fresh, organic eating is on the forefront of many consumers’ minds, a handful of farmers in the valley are working to bring interest to the process behind the produce that ends up in kitchens nationwide. Local favorites like Schnepf Farms, the Queen Creek Olive Mill and The Farm at Agritopia invite the community to take a hands-on approach to the food they eat by touring the farms, learning about agriculture and buying fresh produce onsite. These farms embody the concept of agritourism as they encourage community involvement through tours, classes, farmers markets, tastings, festivals and U-pick produce days. Agritopia developer Joe Johnston believes that this hands-on approach to food “helps us to be thankful for our food and also to see that it is not rocket science. Most of us can garden and most of us can convert produce into delicious food. This gives us confidence and enjoyment as we stop seeing food as something only professionals can grow and make.” Farms and mills that invite the community to experience the growing process firsthand are encouraging a more positive view of food and those who grow it.

The Farm at Agritopia In the heart of Gilbert, nestled against the busy San Tan Freeway, you’ll find a cozy community with a smalltown feel. Agritopia is a neighborhood that is centered around a 16-acre certified organic farm. Johnston, who was raised on the farm when his parents grew wheat and cotton, designed the neighborhood with the intention of “integrating agriculture and community.” Furthermore, the purpose of Agritopa is to feel like a village. “Traditional villages tend to have farming on the outskirts of the village — we just put it in the middle,” says Johnston. “Farming teaches life lessons to the members of the village and is a source of beauty and open space.” Residents, community members and visitors are invited to rent a 400-square-foot plot in the organic community garden, where enough produce can be grown to feed three families. On Wednesday evenings, the community square centered around the farm stand is abuzz as local vendors sell goods at the farmers market and food trucks line the streets. The AB | November - December 2015

TOURISM Queen Creek Olive Mill Queen Creek Olive Mill, the dream of master blender Perry Rea and his wife Brenda, is the only family-run olive mill in Arizona. Rea encourages the importance of sustainable farming; the grove of more than 7,000 olive trees is pesticide-free, as olive flies can’t survive in the valley’s extreme temperatures. The groves are also irrigated with micro-sprinklers filled with water supplied by the Central Arizona Project, and 30 percent of the facility is powered by solar electricity. On a recent visit to the farm, Rea explained the importance of drip irrigation. “It allows us to control exactly how much water we use,” says Rea, which is important in a desert climate. Guests of the mill can take Olive Oil 101, a 30-minute tour and class that teaches the different qualities and standards of olive oil, highlighting the importance of extra virgin olive oil — oil which has been extracted using solely mechanical processes, without the use of heat or solvents. The Reas, both certified olive oil sommeliers, encourage consumers to know their farmers and the milling process in order to ensure they are using the best quality oil. The mill thrives on community involvement with live music every weekend, special events on holidays, art shows and seasonal festivals — the second annual garlic festival, which took place this September.

Schnepf Farms

PROVIDED PHOTOS

OASIS IN THE DESERT: Agritopia is an "urban farm" designed to flourish in the urban setting of suburban Phoenix. To learn more, visit agritopia.com. farm stand is always open on an honor system, meaning that anyone can purchase farm-fresh ingredients whenever they need them. Agritopia also offers a Community Supported Agriculture (CSA) program, in which shareholders pay a seasonal fee to support the farm and get weekly boxes of produce in return. 28

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Just down the road from the mill, you’ll find Schnepf Farms, a family-owned farm and the largest grower of organic peaches in Arizona. The Schnepf family had a huge hand in the incorporation of Queen Creek in 1989, and owner Mark Schnepf served as the first mayor of the town for 11 years, so Schnepf Farms is deeply embedded in the community around it. The Schnepf family began diversifying in the 1990s in order to attract more visitors and keep them there longer. The farm boasts amusement park rides, a petting zoo, and a store and bakery that uses fresh ingredients straight from the farm. In 2005, the farm began purchasing renewable energy through SRP’s EarthWise Energy Program, making it the first farm in the state to do so. “Everything we provide for [visitors] on the farm is organically grown, operated by renewable energy and baked by power that is the cleanest for our environment,” said Schnepf in a statement about the conversion to renewable energy. “We want to continue our farming tradition and pass on our legacy to our children, and caring about the environment is one step closer to preserving that legacy.” Schnepf Farms invites visitors for seasonal you-pick produce, a seasonal flea market and a popular “Dinner Down the Orchard” event, where visitors can dine in the middle of the orchard while eating fresh food produced by the farm. The Peach Blossom Celebration, Peach Festival, and Pumpkin & Chili Party remain some of the biggest draws to the farm, with hayrides, train rides and, of course, farm-fresh food.

AB | November - December 2015

MARKETING

You have qualified leads, now what?

ifferentiating qualified leads from unqualified ones enhances the performance of your sales team. It lets you focus your efforts where you can get real traction. If you’re running a small business, you’ve likely already put effort into building a sales machine that generates qualified leads. You know which prospects are acutely aware of their pain points and are Jerrod Bailey ready to do something about it. marketing And you know which leads have the budget and authority to adopt your solution. But if you don’t optimize your treatment of those leads, you’re throwing away the advantage of qualification. Qualifying leads should produce a robust sales cycle, allowing your sales team to spend more of their time generating income. If you let your sales cycle drag post-qualification, you lose out on that increased ROI. Here are three simple steps you can take that will speed up your sales cycle.

1. Calculate the financial benefit you offer, and show your work Every pain point has its corresponding financial footprint. Bad solutions mean wasted man-hours, decreased morale, higher training costs, and maintenance expenses. Dig into the numbers and follow the money. Do the homework within your target industry, and you should be able to put a dollar figure on the cost of inaction. Then describe the exact amount of time it takes to roll out your solution. If it will take you three months to roll out your new inventory tracking solution, the only way to get savings on the books for the next quarter is to start TODAY. The best way to spur rapid adoption of new solutions is to articulate the price tag of the status quo.

2. Demonstrate value ASAP While the upfront costs of new solutions are obvious to buyers, 30

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early benefits may escape their notice. Even benefits that seem obvious to your team may not be innately apparent to your new client, particularly if one must parse data to observe them. So make sure to set the expectation of improvement, and talk up results as they occur in real time. It is incumbent on the seller to articulate exactly how, when, and where the buyer will benefit. Dissect your product’s rollout. Identify all of its benefits and how soon each one manifests. As soon as your buyer begins to enjoy the fruits of your labor, start a conversation about it.

3. Create a buying process timeline There is a flow to a sale: a beginning, middle, and end. Break down your sales journey into its tangible steps. Start with the earliest surveys of need, and keep documenting until you hit the final launch. As soon as possible, collaborate with your prospective buyer to put a timeline in place for each of those steps. Tie specific actions to real dates as early as you can. A timeline keeps everyone on track. Every stakeholder will know that contract negotiations begin exactly two days after the pilot review session. Having next steps directly outlined in common documents prevents you from waiting for everyone to get on board with each new step. And it means that while you are in the middle of your initial phase you can productively set the stage for the next step. Having a short, reproducible sales cycle keeps startups in business. All too often, hubris or inexperience can slow down closed sales on even well-qualified prospects. Remembering these three tips will help you get prospective buyers excited about adopting your solution quickly and keep them in the loop. And that keeps your company healthy and your buyers happy. Jerrod Bailey is a partner at Tallwave, a nationally recognized venture development firm with founders from Google, Yahoo! and Microsoft, best known for its national accelerator program called High Tide. For the last 15 years, Jerrod has been an operator in three start-ups, including two acquisitions, one by NTT Communications for $520 million.

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TECHNOLOGY

PREPARATION AGE

Tempe company uses simulator to help law enforcement, military make split-second decisions

tepping inside a 300-degree wraparound screen, I found myself in a high-stress, high-intensity environment that felt very real. And I’m not alone. A Valley law enforcement technology company is helping police officers from around the country become the best and become prepared for the worst by utilizing virtual reality active shooter training. VirTra offers a wide variety of training situations for officers, ranging from multiple shooters at a school and traffic stops to domestic violence situations. About 200 law enforcement agencies around the world are using VirTra’s products Meryl Fishler to train officers, including border Technology patrol offices in Tucson and Yuma. “We have consulted subject matter experts and listened to customer requests to create a simulator that is uniquely effective in creating skills that are useful in a real world situations,” said Bob Ferris CEO of VirTra. During the first simulation I underwent, I failed to react quickly enough as the events unfolded during an armed robbery at an ATM, resulting in the stabbing of a innocent person. I was also “shot” once because of my failure to take control of a situation before it escalated into violence. These simulations gave me rare insight into the splitsecond decisions that police officers have to make. Historically, simulation training involves single-screen training

— one screen with one field of view — said Scott Dilullo, VirTra law enforcement subject matter expert. “It is very limited training, not very realistic because all the threats are coming from directly in front of you,” he said. VirTra has taken this concept and expanded it with its flagship 300-degree wraparound screen that offers full situational awareness. “When the officers are training within the simulator, as opposed to training in front of the simulator, they have to be aware of their surroundings just like you do in the street,” Dilullo said. The characters on the high-quality, high-resolution screen yell, curse and cry to add to the chaos as the trainee tries to control the situation. They are real people — not computer images — to avoid appearing like a videogame and so trainees can read threat cues. The outcomes are based on the decision-making ability of the trainee within the simulator. Depending on what the trainee decides to do or not to do, the instructor can move an outcome a certain way. Also, the instructor has the ability to drive a scenario a different way. The instructor uses a computer to manipulate the situation by escalating or de-escalating tensions based upon how the situation is being handled. This involves having characters pull a weapon or submit to the trainee’s orders. VirTra prides itself on the content of its simulations. “It is all about content; content is king,” Dilullo said. VirTra has an inhouse production team of industry professionals that work with law enforcement and military personnel who have been through these situations to create realistic content. “The bottom line is that it all comes down to the more immersive we can make it, the more realistic we can make it, the better training the officer gets out of the simulator,” Dilullo said. Meryl Fishler is a staff writer for Az Business magazine.

Check out a video of VirTra’s technology in action at azbigmedia.com.

VIRTUAL REALITY: VirTra systems employ multiple screens, realistic video training content and an electric impulse return fire system to simulate the stress of real-world situations. PROVIDED PHOTO 32

AB | November - December 2015

DINING

Del Frisco’s beefs up Esplanade Restaurant perfects creative twists on classic comfort food By MICHAEL GOSSIE

rying to find a restaurant that specializes in prime-grade red meat dishes and can stand out from the competition in a Valley filled with amazing steakhouses can sometime feel like playing “Where’s Waldo.” Del Frisco’s Grille has found a way to distinguish itself in a crowded marketplace. Located in the center of Phoenix’s Camelback Corridor, Del Frisco’s Grille takes the classic bar and grill concept to unimaginable height. The menu draws inspiration from bold flavors and market-fresh ingredients and delivers creative twists on American comfort classics. And when you mix Del Frisco’s amazing happy hour with its prime location near the offices of some of the Valley’s best, brightest and most beautiful movers and shakers, it also serves up an amazing people-watching experience. If you decide to hit happy hour, the outdoor rooftop bar, overlooking Piestewa Peak and Camelback Mountain, offers breathtaking views that are beyond spectacular — both the landscape and the patrons. That point cannot be stresses enough: Del Frisco’s may be the Valley’s best place to see and be seen. But getting back to the food. Everything at Del Frisco’s is made from scratch in house. Its menu is a twist on American comfort cuisine, with a tempting mix of sharable plates, two-fisted sandwiches, prime steaks and fresh seafood. For the most part, the steaks are where it’s at, but there are some pleasant surprises for your palate. Here are some takeaways from a recent visit: • The Cheesesteak Eggrolls with sweet and spicy chili sauce and

honey mustard ($12) don’t really sound like natural fit, but they came highly recommended by the server for a reason. They are amazing. The presentation is spot on and the topping perfectly complimented the cheesesteak filling. • The Ahi Tacos, which is tuna tartare, avocado with a spicy citrus mayo ($15), pack an incredibly fresh flavor and boasts a generous portion so it’s an appetizer that is easily shared. The shells are whole wheat wonton wrappers that add a wonderfully unexpected taste and twist to the dish. • The Spicy Pork Meatball Flatbread ($13), is served with banana pepper, marinara and fresh mozzarella and is another dish that packs dynamic flavors and is perfect to share. • If I could, I would eat the Shaved Prime Steak Sandwich ($17.50), served with horseradish sauce and au jus every day. It’s so good, the memory will make your mouth water long after your visit to Del Frisco’s is complete. • The steaks. Wow, the steaks. You cannot go wrong with any of Del Frisco’s signature steaks — eight- or 12-ounce filet mignon, 16-ounce New York strip, or 16-ounce ribeye. All come perfectly cooked and and cut like butter. Make sure you get the loaded potato cake on the side. You may have to add a couple crunches to your morning workout routine, but it will be so worth it. Del Frisco’s is really the ideal restaurant for any occasion — happy hour, casual get-together with friends or even a romantic date night.

Del Frisco’s Grille | Location: 2425 E. Camelback Rd., #110, Phoenix | Phone: 602-466-2890 | delfriscosgrille.com 34

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PARTY PLANNING

Tis the season to party Experts offer advice on how to create a memorable and safe holiday celebration By LAUREN HOLLY

his is the most wonderful time of the year. It’s a time to come together and build memories with your family and friends. But let’s not forget our co-workers. Considering how much time we spend at work, it seems appropriate to share some of that holiday cheer with them. With the economy on an upswing, corporate holiday parties have stepped up their celebration game. But why go through all the trouble and stress and potential risks to plan a corporate holiday party? “Holiday parties are a great way to celebrate the year’s accomplishments with your employees, clients, and suppliers,” says Julie Wong, CMP, of The Event Concierge. “It can also serve as a marketing event to promote the business.” When it comes down to it, experts say corporate holiday parties are a necessary part of doing business. “Especially after so many years of corporate belt-tightening, this is the one annual traditional event where everyone can get together to celebrate the year that was, and build a sense of camaraderie and teamwork as you work towards the year ahead,” says Uzra Vo, event coordinator for Evening Entertainment Group.

Party trends

Meeting professionals say businesses are looking to spice things up now that the economy are are looking to throw holiday parties so employees with want to come — and stay. “Clients want their guests to stay at the party and not leave after dinner,” says Wong, “so many are adding entertainment and interactive activities that guests can participate in. Ideas such as photo booths, caricature artists, holiday ornament decorating stations, design your own holiday cupcake or sugar cookie and even classic holiday themed carnival games are a popular trend this year.”

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“Clients want their guests to stay at the party and not leave after dinner Vo suggests that businesses can even take the fun a step further. “Hire a stand-up comedian to gently roast the executive team,” Vo says, “or incrporate silly themes like a luau with a mechanical shark ride. Companies are really looking to think outside the box rather than the usual cocktail reception followed by dinner and dancing.” Tiffany Higgins, MMP, of The Tiffany Event says parties will come to life if you add wandering performers, such as magicians, jugglers, dancers and Cirque du Soliel-type performers instead of one main act for entertainment. “Themed parties are making a comeback,” said Higgins. “Think ugly sweaters, adult proms, masquerades.” But while parties are meant to be carefree and fun, one very important part of holiday cheer is giving back. “It gives you a little extra bounce in your step when you are partying for a good cause,” says Vo. Higgins says combining parties with fundraising or helping a nonprofit endears companies to their employees and to their communities because they’re focused on giving back rather than simply focusing on profits. “However,” says Wong, “fundraising ideas need to be creative and donors want to feel they are promoting a cause they support or care about. (Giving back) begins at the top with owners or managers and trickles down to the associates. A company match is a great way to achieve this.”

FairmontScottsdale Princess’ winter wonderland

Fundraising and giving back can be incorporated into a holiday party in many unique and fun ways. “Ideas can include donating toys, providing breakfast with Santa for underprivileged kids, or supporting a family in need,” says Wong. “Allow the associates to come up with ideas so they feel involved and accountable. I have seen amazing ideas come from this.”

Memorable events

While in the end, it’s all about fun and games and building memories, a lot of thought and effort has to go into planning holiday parties. When planning a party, Wong has three tips to create a successful event: • “Provide great services to make a successful party,” Wong says. “It can range from a warm welcome, to informative staff, to a professional wait staff. • Create a positive experience for all participants, whether it be attendees, hosts, sponsors or suppliers. They will all talk about how they enjoyed the event for weeks or longer. • Provide a clean, safe and beautiful location. “Guests are not impressed if the location isn’t clean or the location isn’t special,” Wong says. Vo also offers her three pointers to creating a successful party: “Properly plan so it’s seamless for your guests,” she says. • Match your location and theme to the party. “There’s nothing worse than a small party in a huge space or vice-versa,” she says, “and you never want to plan a risqué party for a conservative company or vice-versa. • Don’t be afraid to outsource or defer to the experts. “Just because you can sell a bunch of widgets doesn’t make you a party planning professional,” Vo says. “Save yourself the headaches and you’ll probably save money in the long run, too.” • Higgins has advice, too, for those who are organizing a holiday party”

• Procrastination is not your friend. Start your holiday planning right away. • Great food and drink is imperative. Always schedule a tasting. Small plates with an emphasis on foods from around the world is a great choice. • A great party includes everyone. “Remember, not everyone likes to dance,” she says, “so include other activities or create lounge areas for relaxing and chatting.” While an annual celebration is a great chance to boost morale and show appreciation to your fellow employees, it can also be the perfect opportunity for employees get hurt, behave inappropriately or have a negative experience. Experts say to keep these issues in mind when planning the party. • “Cheaper isn’t always better,” Wong says. “The way to successfully plan on a budget is to get creative, but don’t give up quality. A professional planner can achieve both based on their knowledge and experience.” • Select menus that are friendly to the majority of the guests, not just what the host or planner likes. Today, menu planning has to be considerate of the variety of dietary requests and requirements. • Be cautious of selecting entertainment that can be offensive, politically incorrect, or even a liability to company culture or policies. What could be entertaining to some guests may be offensive to others. • “Skip the open bar,” Higgins says. • Skip the potluck and get a caterer,” Higgins adds. “Trust me, your employees will love you for it.” • Reduce long speeches at the party. Establish a time limit or require proofing scripts and let everyone enjoy the festivities. “To paraphrase the old saying, politics and religion don’t mix with office parties,” Vo says. “Unless you want your employees photocopying their bottoms, don’t host it at the office. It’s a party, not a late night at the office.” AB | November - December 2015

PARTY VENUES

Party planning There is still time to book a memorable holiday get-together for employees By LAUREN HOLLY

ou’ve worked hard. You’ve had a good year. The economic downturn is in the rearview mirror. It’s time to celebrate. Even if the office holiday party is something that slipped your mind because it wasn’t in the budget for the last few years, there are plenty of options still available to create a memorable holiday event for employees. Here are some hot spots that come recommended by members of the Arizona Sunbelt Chapter of Meeting Professionals International. Blanco Tacos + Tequila

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. Information: foxrc.net

Chateau Luxe

If you want to do something for employees to show appreciation and honor for their hard work, look no further than the new Chateau Luxe. The sparkling new space’s versatility makes it perfect for cocktail parties and intimate dinners and corporate celebrations. Information: chateauluxeaz.com

Clayton on the Park

This 6,000-square-foot venue is located in the heart of Downtown Scottsdale. With three different venue spaces to choose from, you can either host your party indoors with beautiful floor-to-ceiling windows and views of the park, or outside by the unique art sculptures and greenery. Information: claytononthepark.com

El Chorro

Located at the base of Camelback 38

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mountain, this destination restaurant offers a variety of venues with exterior fireplaces and patios to enjoy Arizona’s weather and scenery. With their Southwestern-influenced menu, El Chorro’s dishes are prepared with organic and locally grown ingredients, making their savory cuisine the highest of qualities.

Information: elchorro.com Fairmont Scottsdale Princess

With two 23,000 square-foot ballrooms, outdoor courtyards and three distinctive restaurants — Bourbon Steak, La Hacienda and Toro Latin Restaurant — plus The Plaza Bar in the main plaza, there are endless possibilities for holiday parties, from intimate gatherings to grand galas. Information: scottsdaleprincess.com

Hi Fi Kitchen & Cocktails

This undeniably fun location, with a quarter century experience in entertainment, is full of unique visuals centered around rock ‘n’ roll accents with a touch of modern and rustic foundations. With a 360-degree bar, elevated seating and 35 HDTV monitors, Hi Fi makes sure any event is far from dull. Hi Fi gives private groups the opportunity to have custom group catering, beverage, entertainment and décor packages. Information: hifibars.com

Hotel Valley Ho

Whether you’re hosting 50 guests or 500, downtown Scottsdale’s historic icon has you covered with 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. Information: hotelvalleyho.com

JW Marriott Desert Ridge

This award-winning location is set on

316 acres with 40 gorgeous venues and breathtaking views. The JW Marriott at Desert Ridge has skilled meeting planners to help with your corporate event, as well as group packages to fit your needs. Information: 480-293-5000

Kimpton’s Hotel Palomar Phoenix

Savor holiday fare and craft cocktails at this Downtown Phoenix boutique hotel. Choose from several different party packages to create a custom event. Invite your guests to take the elevator home and spend the night while enjoying a discount off the best available rate when you book an event.

Information: hotelpalomar-phoenix.com

Livewire

Arizona’s newest venue for live music can accommodate more than 1,100 guests in a state-of-the-art sleek and glowing atmosphere. At more than 14,000 square feet, Livewire has some of the most advanced live music technology in the nation, an open dance floor and a 25-foot HD video wall. “This is where we love to go for our big events,” said Uzra Vo, event coordinator for Evening Entertainment Group. Information: livewireaz.com

Mint Ultra Lounge

With the largest outdoor patio in Old Town Scottsdale at 4,500 square feet, Mint takes the cake when it comes to Arizonans enjoying the weather in November and December. The Mint also offers a private dining and wine room, several fireplaces, and a luxurious 30-foot bar. “The Mint makes every event feel like a million bucks,” said Vo. Information: mintultralounge.com

Octane Raceway

Octane Raceway offers the 45 mph SodiRTX karts, a Segway obstacle course, rock

PROVIDED PHOTOS

HOT SPOTS: Some interesting options for locations to hold a holiday party include, clockwise from top left, the Rawhide Western Town & Steakhouse, Hotel Valley Ho, Chateau Luxe and the Phoenix Zoo. 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. Information: octaneraceway.com

Phoenix Zoo

This location offers more than 15 unique venues, both inside and outside, with lighting packages included. Guests will also have the opportunity to experience events while at the party, such as a safari train tour, casino games, disc jockey, Stingray Bay and other animal encounters. Information: phoenixzoo.org

Rawhide Western Town & Steakhouse

tucked-away courtyards with fountains and an enchanting atmosphere.

breakdown, guest table and chairs, valet parking and much more.

SoHo63

The Henry

Located in Chandler, SoHo63 is a beautiful venue with a contemporary feel, several indoor spaces, a gorgeous rooftop terrace inspired by New York City and cutting-edge technology. This location can accommodate 25-200 guests with four different modern indoor-outdoor spaces that can be connected or used individually.

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.

Information: royalpalmshotel.com

Information: soho63.com

Stand Up Live

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.

Forget about “ho ho ho” and say “ha ha ha.” 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.

Royal Palms Resort & Spa

The Croft Downtown

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,

This special events venue is known for its flawless service, with expert staff, delicious catering menus, on-site professionals and phenomenal A/V capabilities. This venue offers an extensive range of styles to fit whatever your company is looking for. The Croft also offers custom décor, set-up and

Information: rawhide.com

Information: standuplive.com

Information: thecroftdowntown.com

Information: 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. Information: thephoenician.com

Wrigley Mansion

With 360-degree views of the Sonoran Desert and the city of Scottsdale, it’s hard to beat Wrigley’s location. This venue has 10 unique rooms with several outdoor spaces, all varying in size to fit your group. Whether your group is 20 or 1,500, the Wrigley Mansion can make it work. Its trained staff will also provide you with a sample holiday banquet menu if needed, which includes its chef’s best prepared meals. Information: wrigleymansion.com AB | November - December 2015

AB | November - December 2015

CFO of the Year

BRAD ANDERSON

DARRYL BAKER

JEAN PAUL CAPIN GALLY

Background: As one of Amtech’s three key leaders, Anderson is often forced to wear several hats. Peers says one of his greatest traits is his willingness to assist others, regardless of their title or the task at hand. It is not uncommon to see him, in addition to his regular duties, quarterbacking a transaction, working on the daily public filing obligations and jumping in on other tasks to support his fellow members of management and employees.

Background: Baker has served as Insys’ CFO since October 2012 and was instrumental in helping the company complete a successful initial public offering (IPO) in May 2013. Insys became the top-performing IPO in the United States for 2013. He is responsible for all financial functions, including investor relations, investment banking, treasury, accounting, tax, and information technology.

Background: Capin Gally joined Local Motors in 2012 and was tasked with the challenge of building the financial and accounting department of the company, which includes human resources. Capin Gally was previously CFO of Mastretta Cars, which built the first Mexican sports car.

Executive vice president and CFO Amtech Systems

Impact on company: Anderson’s exceptional leadership ability and creativity was shown during a sixmonth period at the end of 2014 and beginning of 2015 when Amtech acquired a substantial subsidiary in a complex merger transaction that was subject to shareholder approval. The transaction took substantial time and planning to put together, but Anderson always had the end in sight and worked tirelessly to achieve a successful consummation of the transaction.

AB | November - December 2015

CFO Insys Therapeutics, Inc.

Biggest challenge: “The biggest professional challenge I faced in my career came when I found myself as the CFO for a business that I knew would ultimately be hopelessly unsuccessful. From that experience, I learned the values of patience and persistence. I also came to appreciate that one learns and grows much more from trials than from successes. I was able to weather that storm by partnering with key people both inside and outside of the organization to navigate that difficult path together.”

CFO Local Motors

Virtues of job: “Working with other team leaders to develop and support innovative thinking with financial grounding is challenging. But ultimately shaping these ideas, architecting our strategic growth and seeing these ideas come to fruition by successfully securing the necessary financial resources has been incredibly fulfilling.” Biggest challenge: “Securing funding for Local Motors has been a challenge due to our fundamentally different model of crowd-developed vehicle manufacturing and an investment climate prioritizing software over hardware. I transitioned the company into a KPI-driven organization to provide empirical data supporting our business model and decreasing investment risk, thereby securing 70 percent of total equity funding raised by the company.”

Congrats to Arizonaâ&#x20AC;&#x2122;s CFO Superheroes!

Consulting, Contract & Direct Hire Solutions

vaco.com | 602-633-1300

AB | November - December 2015

CFO of the Year AL CHARLESWORTH

CFO Option 1 Nutrition Solutions, LLC Background: Charlesworth joined Option 1 in 2011 and is responsible for the entire financial operations of the company, which includes the production of the monthly financial packages, tax, treasury, revenue cycle and the production of daily key performance indicator (KPI) metrics. Charlesworth also serves as the company’s chief compliance officer and is responsible or the company’s compliance with Medicaid and Medicare laws and procedures. Impact on company: Charlesworth has helped develop and implement the organization’s revenue cycle and financial processes. These processes have helped Option 1 to significantly reduce days sales outstanding and ensure that Option 1’s collection rate is one of the best in the industry. Collection rates are critical to revenue generation and Charlesworth has improved the ratio from 90 percent several years ago to more than 96 percent today. Charlesworth has also developed a financial and revenue cycle team that supports the continued growth of the organization. .

FENG CHIOU

Vice president and CFO Arizona Bridge to Independent Living Background: Chiou is responsible for overseeing the financial operation of ABIL, including accounts payable, receivables, payroll, accounting, and billing. ABIL’s annual budget is $40 million. Chiou handles all aspects of ABIL’s financial reporting, budgeting and annual audit. She also oversees the billing for ABIL’s $35 million AHCCCS/ALTCS funded Personal Assistance Services (PAS) Home Care program, which employs approximately 2,400 caregivers annually. Impact on company: Chiou provided extensive financial analysis and program support that helped ABIL expand its PAS program to Pinal and Pima counties. Feng oversaw the transition of nearly 400 fulltime equivalent employees in Pinal County to ABIL’s payroll. This added to ABIL’s weekly payroll and monthly billing workload. The expansion to Pima County added nearly 250 PAS employees with a combined Pima and Pinal revenue exceeding $7 million annually. In addition, ABIL’s collection rates have historically been nearly 99 percent under Chious’s leadership.

AB | November - December 2015

JOHN A. COLLINS

CFO and vice president Pacific Scientific Energetic Materials Company Background: Not only is Collins his company’s CFO, he is widely recognized by the staff as being the second in command. Under Collins’ leadership between 2010 and 2014, the company delivered a compound annual growth rate of 9 percent and improved operating margins over the same time period by more than 17 percent. Virtues of job: “Being a strategic partner and working closely with my colleagues to chart our company’s future course is very rewarding. We all win when our financial condition is strong and we make smart investments for the future. Our associates want to be a part of a winning team.” Biggest challenge: “During a global assignment, my challenge was to turn an unprofitable operation around in one year. I had to learn the operation and culture. By demonstrating leadership courage and involving the leaders, associates and Works Council, we were able to achieve profitability and build a foundation for the future.”

Leader, visionary, collaborator... attributes of true achievers. U.S. Bank salutes the 2015 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 prosperous business development shows through the positive results this program has produced in our Arizona communities.

Because when our communities succeed, everyone wins. U.S. Bank is honored to sponsor the 9th Annual CFO of The Year Awards.

Member FDIC 151036 10/15

CFO of the Year JIM EDWARDS

Vice president of finance Natural Partners, Inc. Background: Edwards’ role within Natural Partners is to provide financial leadership to not only the employees, but the company from a business strategy and development position. He has provided oversight of all areas of the finance department, legal issues, and contract negotiations. He has played an important role in the company’s East Coast expansion through securing first round funding and a revolving line of credit.

DAVE CONE

CFO Taylor Morrison Background: Cone joined Taylor Morrison as CFO in October 2012. He has more than 20 years of experience in the financial arena, with experience in audit, accounting, financial planning and analysis, financial reporting, investor relations, and treasury. Virtues of job: “All companies want to perform well and drive returns. What differentiates Taylor Morrison is our people. My team is passionate about problem solving and we thrive on working together to find a solution. If getting the best outcome was easy, we wouldn’t be needed — but we are. That is what makes me rise to the challenge every day.” Biggest challenge: “Within my first three months at Taylor Morrison … we launched an IPO, agreed to acquire and closed on a company.It was the most exciting and professionally challenging time in my career. I immersed myself in our business and people, and the outcome has successfully positioned us for continued financial and geographical growth.”

AB | November - December 2015

Impact on company: In the three years that Edwards has been part of Natural Partners, sales have grown 17 percent, margins have improved by 5 percent, accounts receivable has decreased by 84 percent, total assets have grown by 223 percent and retained earnings has increased by 110 percent. Virtues of job: “Rewarding for me as a financial executive is creating a business strategy that when implemented has a successful impact on the business. I am results-oriented; therefore meeting or exceeding the objective of a strategy is very satisfying.”

JAVIER FAVELA

CFO and COO Jewish Family & Children’s Services Background: Favela has provided leadership in the management and business growth of JFCS. He has functioned as the CFO and COO not only for JFCS, but also for Topaz Information Solutions and Behavioral Health Information Network of Arizona. During the past 6 years the revenues from JFCS have grown from nearly $18 million to more than $34 million. Virtues of job: “As a financial executive, I have gotten the opportunity to work on business and operating model transformation, corporate strategy, and other business initiatives rather than solely cost management. The most rewarding experience is bringing value to my company through contribution to major business initiatives.” Biggest challenge: “There are four generations in the workplace and it’s never been more challenging in my career to find qualified people, develop them, and plan for succession. I’ve learned to balance between hiring someone for position-need versus hiring someone that is excellent regardless of the position.”

AB | November - December 2015

CFO of the Year MARK FUNK

Executive vice president and CFO Mobile Mini Background: Funk is responsible for all accounting, banking and related financial matters including investor relations. He is also responsible for IT and business intelligence for the company. Impact on company: Funk led the $405 million acquisition of Evergreen Tank Solutions, which was a new business segment for Mobile Mini. Since Funk

BARRY GARDNER CFO and COO Food for the Hungry

Background: Gardner has been CFO of Food for the Hungry since 2010, coming to Phoenix from the Chicago area with lengthy and broad experience in accounting and financial management for profit and nonprofit environments, including Fortune 500 firms. Gardner has written on issues related to economics, technology, and ethics. Impact on company: During a major period of financial challenges three years

MICHELLE GIESEN

Vice president of finance and CFO Arizona Humane Society Background: Giesen oversees accounting and finance, purchasing, facilities, information technology and data management at the Arizona Humane Society. She has 20 years of combined experience in public and private accounting. Virtues of job: “The most rewarding part of being a financial executive is the impact that your financial perspective can have on

AB | November - December 2015

joined Mobile Mini, the company’s share price has increased more than 150 percent, which was driven in part by implementing a formalized capital allocation process including the initiation of quarterly dividends. Biggest challenge: “Building a business in NYC post 9/11/01. My first day in a newly promoted role was 9/11 and our offices were connected to the Towers. I had to relocate the team in a stumbling economy, and I am proud to say that I drove the business to become a market leader.”

ago, Gardner instituted an insightful cash flow management plan that brought the organization through difficult times. He has instituted a budgeting and planning process that allows FH to create a global budget while engaging leadership from more than 22 countries. This has amazingly brought new levels of unity to the organization. Gardner also handled the legal and financial negotiations with the U.S. government when the organization was erroneously being charged for false representation on the valuation of international food commodities.

the organization. Working for the Arizona Humane Society, this has been especially exciting. In the past year, we have seen a 73 percent decrease in euthanasia and to have played some part in that makes the job of CFO even more fulfilling.” Biggest challenge: “As a CFO of a nonprofit, you wear many different hats and oversee many departments. This has been challenging, but I have overcome it by getting the right people in the right positions and ensuring they have the resources and support that they need to succeed.”

AB | November - December 2015

CFO of the Year EDDIE GOITIA

CFO Tilted Kilt Franchise Operating Background: Goitia is the CFO to the Tilted Kilt Franchise Operating restaurant group that has more than 105 restaurant pubs in the United States and Canada with projected systemwide sales of $220 million for 2015. In his capacity as CFO, Goitia is in charge of the long-term financial strategic plan for TKFO and overseeing all aspects of financial stability and growth. TKFO has a staff of 38 and Eddie is responsible for coordinating their efforts with the ultimate goal of growing wealth for the franchisees in the Tilted Kilt system. Virtues of job: “The most rewarding aspect as CFO for Tilted Kilt is witnessing a franchisee that has invested their savings into a business becoming profitable. This profitability is not only a financial success, but also family financial independence. There’s nothing better than to hear them tell their success story.”

DAVID HANSEN

CFO Jennings, Strouss & Salmon Background: Hansen joined Jennings, Strouss & Salmon in 2007 as the firm’s director of finance and was promoted to CFO in June 2014.

BRYCE HANCOCK CFO BeyondTrust

Background: Hancock has more than 17 years of executive operational experience to his position. Hancock carries global responsibility for the management of company finances, accounting, tax, human resources, legal and risk management, IT and strategic planning and analysis. Impact on company: Hancock built a successful financial model for BeyondTrust and today, it is experiencing 41 percent profit margins. Hancock helped BeyondTrust reache a deal to be acquired by an affiliate of a private equity firm in late 2014. The deal delivered a gross return on investment for the previous majority owner of more than 500 percent, with approximately 60 percent of that return being generated after Hancock became CFO in 2012. Virtues of job: “The most rewarding aspect is having a meaningful daily impact on the tactical and strategic direction of the company. We use data and experience to plan and measure outcomes and there is genuine satisfaction that comes from being an integral part of the business direction.”

AB | November - December 2015

Virtues of job: “As a former college football player, I am a strong believer in teamwork. Our accounting department staff has been crosstrained so that there is always someone available who can perform any task … I’m very proud of the loyalty of my staff. Each member of our department, myself included, has been with the firm for at least eight years.” Biggest challenge: “Learning the intricacies of how a law firm operates, as well as the practices of law for each attorney, is critical in the analysis and decision-making processes, both short-term and long-range. My background in public accounting gave me the foundation necessary to adapt to this environment and my previous management positions provided me the experience in working with a strong group of professionals.”

AB | November - December 2015

CFO of the Year ROSEMARY JAMES

CFO Barnett Management Company

STEVE HOWARD CFO Plexus Worldwide

Background: Howard has more than 25 years of diverse leadership experience in a variety of industries, including insurance, information technology services, healthcare, semiconductor manufacturing and multi-level marketing. Impact on company: Howard implemented finance, HR and IT initiatives to help drive rapid growth, taking the company from $37 million in annual sales to $310 million. For 2013, the company ranked No. 8 among fastest-growing private companies by Inc. 5000. Virtues of job: “The best part of being a CFO is helping to guide a company with a higher purpose to greatness, because this is when you truly feel like you’ve made a positive impact on peoples’ lives.” Biggest challenge: “My career stalled in 2008-2009 and I realized I needed to upgrade and update my skills. So I made the commitment to pursue an executive MBA at the W.P. Carey School of Business, which turned out to be one of the best things I’ve ever done.”

AB | November - December 2015

Background: James oversees the financial stewardship of 24 Burger King Restaurants. Her responsibilities also extend to the management of more than 50 of the company’s and owner’s complex tax entities, inclusive of LLCs, corporations, and trusts, as well as overseeing more than 50 bank accounts. In total, Barnett Management has more than 600 employees in the Arizona market, making it the second-largest Burger King franchisee in the state. The Barnett Franchise Group was awarded Franchisee of the year in 2014 by Burger King Corporation. The award was based on strict metrics, including operations and financial results reporting. Biggest challenge: “I believe people are my biggest challenge as they are the most valued resource of the company. It is very easy to under-estimate the impact on others. The challenge is ongoing. Whether it is an owner, an employee or supplier, I am committed to delivering consistently thoughtful and intentional communication.”

CRAIG JONES

CFO and treasurer District Medical Group Background: As CFO and treasurer, Jones focuses on the non-clinical issues for DMG. He, along with the CEO, make up the two senior executive officers of DMG. He attends each board meeting and interfaces with most of the board’s committees, as well as DMG’s internal leadership. He is a pivotal part of helping DMG meet their business, financial, and strategic goals. Impact on company: When Jones became CFO of Medical Professional Associates of Arizona, the predecessor to DMG, the for-profit physicians group was, for all intents and purposes, bankrupt. While carefully managing cash, Jones worked to change the corporate culture to one which showed interest and concern in how the organization generated and expended its resources. It took more than two years to sufficiently change the corporate culture. During this time, he was also able to gain the confidence of a financial institution, which was required since the previous bank had terminated its relationship with the company.

AB | November - December 2015

CFO of the Year

COREY J. KENNEDY

CFO Legacy Traditional Schools and CFE Management Group Background: Kennedy oversees and directs all of the finance and accounting for nine separate schools and one charter management organization across Arizona. He is directly responsible for the management of more than $60 million annually in state, federal and local revenues. Kennedy is credited with being integral to Legacy’s recognition as the top-rated K-8 school district in Arizona. Virtues of job: “It’s extremely rewarding to know that my efforts to ensure financial stability for each Legacy Traditional School contribute to over 10,000 children in Arizona receiving a top-notch education. Knowing that it’s for a great cause makes it all worthwhile.” Biggest challenge: “When I arrived at Legacy, the tremendous growth of the school system had simply outpaced the accounting function. The challenge to catch up and return to solid ground seemed almost insurmountable. Thanks entirely to an outstanding team working together toward a common goal, we were successful.”

AB | November - December 2015

STEVE KRELL

MICHAEL LOLLI

Background: Krell is an executive team member and investor in the venture-capital-backed company that focuses on the online home video sharing market. He is responsible for an organization of more than 120 people, including operations, customer service, product support, finance, accounting, legal, HR, warehouse and fulfillment.

Background: Lolli has full oversight and responsibility for financial matters, reporting and relationships. This includes tax strategies, investments and banking.

CFO and COO iMemories

Impact on company: Krell managed and negotiated equity and financing activities that total more than $20 million to date. He implemented and managed product rollout to a retail partner with more than 8,000 locations. He also managed and tracked Adword marketing performance with conversions tripling and cost decreasing by 50 percent in four months. Virtues of job: “(I enjoy) being part of a company with strong team chemistry and innovative products that drives high revenue growth and profitable results. It’s rewarding to see hard work, persistence and creativity from a management team and employees pay off with financial success and achieved sales and operational goals.”

CFO Auer Precision

Impact on company: Lolli engineered a full-scale business pivot that transitioned the company from semiconductor-based products with customers such as IBM and Intel into entirely new markets as a medical products contract manufacturer for life sciences and biotechnology companies. This pivot replaced 90 percent of the company revenues with longer term, more stable business with comprehensive manufacturing and supply chain agreements. This massive replacement of business was done smoothly and with little disruption to the overall operations and staff. Biggest challenge: “My biggest professional challenge was taking over the financial reigns of an organization having lost 50 percent of its revenue the year prior and loaded with debt. We overcame that challenge through sound fiscal practices and by setting forth realistic expectations with our financial partners and maintaining constant communication through the recovery process.”

AB | November - December 2015

CFO of the Year KEN MARCUS

Director, UA Tech Park CFO, Campus Research Corporation Tech Parks Arizona Background: For more than 16 years, Marcus has led the financial operations of a highly complex 501(c)(3) organization. He serves as CFO, park director and controller for Campus Research Corporation. He oversees daily operations and finances for the UA Tech Park, the UA Tech Park at the Bridges and Arizona Center for Innovation. In this role, Marcus works with various regional and national governmental organizations, as well as University of Arizona officials. Impact on company: Marcus has designed, implemented and directed general accounting, budgeting, financial analysis and reporting, tax packages, compliance, annual audit, payroll and long-range business planning for more than 1.8 million square feet of office and industrial, high technology research and development space. His strong banking relationships helped implement an $11.2 million taxable bond loan package; and $1.5 million, $2.3 million and $650,000 lines of credit/loan packages.

SHAUN McMEANS

CFO and vice president of finance and administration HTG Molecular Diagnostics, Inc. Background: Since February 2012, McMeans has served in his current role at HTG, which sells a device to streamline and expedite molecular profiling. In May, McMeans helped take HTG public in the United States, raising $50 million of equity. Virtues of job: “The most rewarding aspect of being a financial executive is working closely with my HTG colleagues to drive the company’s mission. Completion of our recent IPO validated the vision of HTG for its now nearly 90 employees and its original stakeholders.” Biggest challenge: “Finding the right combination of financial partners, whether shareholders or lenders. (We overcame that challenge) by gaining their confidence to first understand our vision of the future of molecular diagnostics and then to commit their finite resources to HTG.”

AB | November - December 2015

BRIAN MEE

Chief business officer Pendergast Elementary School District Background: Mee is responsible for the creation, implementation and accountability of an $80 million budget. School districts operate much like large corporations except the stockholders are the students, staff, families and the communities served daily. The district has high student achievement and Mee has been at the forefront of making that happen. Virtues of job: “The impact I can make in the lives of students. As CBO, it is my responsibility to ensure that every decision made concerning the use of our resources is based on what is in the best interest of students and to insure they are spent in the most efficient manner.” Biggest challenge: “The impact of the recession on our funding. Since 2008, PESD has lost $17 million in funding due to a 10% loss in student enrollment and reductions in state funding. Through prudent planning and streamlining systems, the District was able to make significant and responsible reductions without impacting the classroom.”

CFO of the Year ROBBIE MOLNAR

Director of finance Resolute Performance Contracting

KATHERINE MILLS

Senior vice president and CFO Donor Network of Arizona Background: Mills entered the donation community in 1992 with several years of healthcare experience as controller of a large hospital system, a business/ accounting degree from ASU and a CPA license. She is responsible for finance, HR and IT. She was charged with transitioning an unprofitable hospitalbased department into an independent 501(c)(3) corporation. Impact on company: Mills played a major role in creating and implementing a successful business model for the financially struggling organ and tissue bank, start-up of a major eye bank and the acquisition and integration of an existing histocompatibility laboratory, which provides testing for organ recipients. Under Mills’ financial leadership in the last year, DNA has reduced costs pertaining to donor hospital charges by 13 percent; ensured a positive operating margin variance that was double the budget ($2.6 million); and increased cash, investments and net assets to $5 million.

AB | November - December 2015

Background: Molnar is the principal financial manager at Resolute. His responsibilities cover all of the company’s major financial functions, including GL accounting, cash management, A/R and A/P, payroll, cost accounting, bonding, financial planning and analysis, financial strategy, bank relations and the management of the company’s enterprise resource planning. As a start-up, Molnar has created and re-created many of the company’s management functions — and not just in the finance area — when needed due to growth and expansion. Most importantly, he has worked tirelessly to manage the ever-stressed capital position of the company. Biggest challenge: “As a new, fast-growing business, it has been — and continues to be — a challenge to manage the massive demands on scarce working capital. In order to meet the day to day operational needs as well as invest in our future growth, it has required specific metrics to prioritize competing needs.”

DAVID NELSON

CFO and vice president of finance Scottsdale Insurance Company Background: Nelson is CFO of the Scottsdale Insurance Group of Companies (Scottsdale Insurance Company Contract and Brokerage, Freedom Specialty Insurance Company, and Crestbrook Insurance Company), as well as Nationwide Agribusiness, which together make up Nationwide Specialty Commercial Insurance. Nelson retains financial oversight for businesses totaling $3.8 billion of annual operating revenue, while managing 80 personnel in Scottsdale and Des Moines. Nelson joined the company in 1991 in an entry level position and rose through the ranks by caring about his staff, being a respected sounding board for his peers, passionately supporting the business and being a forward thinker. Impact on company: Nelson made the CFO role more approachable by holding monthly “Dine with David” meetings, which allow finance associates to meet with him in an informal lunch setting. The impact is clear. Associate engagement in Nelson’s organization, as measured by an annual survey administered by Gallup, has increased from the 50th percentile to the 74th percentile.

AB | November - December 2015

CFO of the Year GREG NELSON

programs. The result increased gross margins on educational products from 40 percent to 90 percent, resulting in millions of dollars in profit.

Background: Since 2003, Nelson has overseen finance, technology and operations for WorldatWork. He has more than 25 years of broad-based business experience in both public and private firms, from start-ups and turnarounds to Fortune 100 companies. He serves on the Board of the Arizona Society of Certified Public Accountants.

Biggest challenge: “Early in my career I was involved with a high-growth company that was acquiring and integrating new businesses almost monthly. We were outgrowing our management systems and it was challenging to lead a growing finance team into such a hectic and unfamiliar environment. Each day felt like a ‘sink or swim’ situation. Looking back, it was an amazing learning experience as we finally transformed into an incredibly successful business.”

CFO WorldatWork

Impact on company: Under Nelson’s leadership, WorldatWork developed online technology to deliver its educational

LUPE NESBITT CFO Intesource

Background: Nesbitt oversees all financial functions, as well as administration, human resources and contracting matters. Impact on company: Intesource was sold to PROACTIS Group in 2014 and Nesbitt played a key role in the process. From the search of purchasers through the transition, she emphasized the importance of maintaining the company’s culture and ensuring the services provided to the company’s customers and employees continued with minimal disruption.

CHRIS PALMER CFO Televerde

Background: Palmer provides key leadership by setting, communicating and acting on the company’s strategic direction, including product planning and development, business development strategy and leadership for the financial operations. He also directs corporate strategic partnerships, including potential mergers, acquisitions and strategic equity investments. Impact on company: Palmer’s disciplined financial management process has enabled the the company to expand gross margins

AB | November - December 2015

Virtues of job: “The most rewarding aspect of being a financial executive in a small company is the ability to understand the business from many aspects and ability to make a significant impact on the future of the company with strategic decisions supported by deep financial and operational knowledge.” Biggest challenge: “Selling the company, the subsequent transition and ensuring that business continued with minimal distraction during and after the process. Communicating as much and when possible within the company during and after the sale alleviated many concerns and questions and allowed continued focus on the business.”

from 65 percent to more than 70 percent, adding more than $1.5 million cash flow per year to the business. Virtues of job: “Today’s CFO goes way beyond financials. We combine disciplined, will not fail mentality with a unique blend of financial, business, and strategic aptitude; using those skills to diagnose problems, find solutions, and align people to drive positive change and achieve results is the most gratifying aspect of the job.” Biggest challenge: “Leadership is hard work. It requires credible vision, clear strategy, and influencing individuals with disparate needs to make the organization’s goals their own.”

AB | November - December 2015

CFO of the Year LARRY W. SEAY

Executive vice president and CFO Meritage Homes Background: Seay is a trusted confidant and sounding board for the CEO and other executives. In addition to traditional duties managing accounting and finance, Seay also oversees the company’s IT operations. Impact on company: Seay’s IT team is working on two projects that will improve efficiency and customer service. The first is an in-house document retention system which will be an accessible company-wide repository for nearly all company documents. The second is an external interface which allows buyers to have an open “portal” to the sales and construction team during the sales, build and closing process. Virtues of job: “The most rewarding aspect of my job is being a part of a senior management team where I am able to contribute sound financial and business advice which helps shape the overall direction and future of the company. Being on the senior manager team provides me with the avenue to be part of a winning team and company.”

MARK STRASZYNSKI CFO Best Western International

Background: Straszynski was named CFO of Best Western in June 2008. In this role, Straszynski sets strategic financial direction for the iconic brand, overseeing finance, accounting, treasury and risk management. He is responsible for global finance, accounting, reporting, internal controls, treasury, and financial-based decision making. He also sits on the brand’s senior executive team, which shapes and executes Best Western’s long-term strategies. Impact on company: In seven years at Best Western, Straszynski has led the transformation of his department into an energized and empowered team that has dramatically increased employee engagement, improved processes, established stronger internal and fraud controls and elevated the company’s level of service to Best Western hoteliers. During Straszynski’s tenure with Best Western, the brand has expanded from offering one hotel type to six, including the recent launch of Vīb®. As a result, Best Western has strengthened its brand relevance and grown significantly within the industry.

AB | November - December 2015

BARRY SULLIVAN

CFO Robertson Fuel Systems, LLC Background: Sullivan manages financial risk for Robertson and is responsible for accounting, tax reporting, financial planning, budgeting, record keeping and reporting. He is credited by Robertson executives with significant improvements in the company’s supply chain area, empowering the supply chain team to become strategic, not just tactical thinkers and actors. Virtues of job: “One of the most rewarding aspects of being a CFO/ financial executive is being able to delve into and understand all aspects of the business you are working with. I have been able to gain exposure to and meet some incredibly smart people who accomplish fantastic things in their area of expertise.” Biggest challenge: “During my tenure working with financially distressed organizations, it was incredibly challenging to portray confidence and leadership to employees, customers and suppliers while at the same time maintaining the highest level of integrity and having the hard discussions when there were easier ways out.”

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Thank you for your dedication, performance and even-tempered leadership! AB | November - December 2015

CFO of the Year

MICHAEL J. SURIANO

DAVID TOMIZUKA

Background: Suriano functions as the primary financial officer for the company in a hands-on capacity. Areas of oversight include all accounting and reporting functions, credit, accounts receivable, risk management, payroll, tax and accounts payable.

Background: Tomizuka was appointed to the role as CFO at Integrate in the fall of 2013. His primary focus is to optimize operations across the entire organization and to ensure that the company’s immediate and future financial strategies support fulfillment of long-term goals.

Vice president of finance Bar-S Foods

Impact on company: Suriano led the organization through a sales region reorganization, significantly reducing cost and increasing profitability. He was also instrumental in developing a strategic shift in the company’s cost and profit management model. This initiative dramatically improved the cost accountability in each segment of the company, resulting in yearover-year record performance. The concept has been the backbone of continual profitability growth in all segments of the company. Virtues of job: “Mentoring and coaching our team so they can fulfill their potential and develop into future leaders for our organization. Developing a talented team is one of the most significant positive influences I can have on the organization today and will have ongoing benefits to the company far into the future.”

AB | November - December 2015

CFO Integrate.com, Inc.

Impact on company: “Before Dave joined, we didn’t budget or have goals,” said Jeremy Bloom, CEO of integrate. com. “If we did, they weren’t grounded in any reality. Dave’s brought discipline to the business by instituting a flexible budgeting process appropriate for an entrepreneurial and growing company like ours, while leading us to develop metrics that help us understand the levers we can pull to achieve results. The investments we’ve made in this area at his insistence during 2014 have been key to raising capital, placing good bets, and tracking the success we are having transforming our business in 2015.” Biggest challenge: “The greatest professional challenge I’ve faced came in the first 30 days at Integrate. We had six weeks of cash, were in default with our bank, bleeding cash and dysfunction was rampant. As a new executive, I had to contribute to painful decisions that negatively impacted many people, in order to help avoid disaster.”

AB | November - December 2015

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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!

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AB | November - December 2015

CFO of the Year MATT VERBIN CFO Tanga Network

Background: Verbin has 15 years of experience in both the public and private sector, having overseen everything from finance to operations and IT. Impact on company: Verbin’s combination of creative internal financing and cost savings has allowed Tanga, a completely bootstrapped company, to reduce expenses by $3 million, a massive achievement for the Tanga.com business unit which most recently did $21 million in annual revenue. Virtues of job: “Right now it’s the ability to help millions of people hold onto their hard earned money. Cost savings that our finance team has been able to creatively drive out of our business get passed on to the consumer who need it most.” Biggest challenge: “(Early in my career) in 2007, I joined a seasoned management team for a manufacturer without having industry experience. They ran archaic, DOS-based software. Add a culture reluctant to change; buy-in to upgrade systems was difficult. Outworking everyone and achieving huge early wins attained the trust needed to move forward.”

NORM VITOLS

CFO FATHOM, Global Water Management, LLC Background: Vitols serves in many capacities at FATHOM, a geo-spatial platform that defines the meter-to-cash vertical in the water space. He is a company investor, board of directors officer and C-suite executive. Vitols skills are critical to the organization, from strategy, capital structure, development of key milestones, and metrics to tracking, reporting and guiding business performance. Biggest challenge: “Twice in my career, I have been fortunate enough to build teams and processes for rapid ground- floor or scale-up businesses. Starting from nothing or very little is a daunting and intense process with many opportunities for error and success. My first of these endeavors was for a $500 million green field technology manufacturing plant. Currently I am with a software as a services company that is scaling from servicing several million to one hundred million devices. Successfully tackling these challenges requires that I build outstanding teams, innovate processes, lead change and mostly listen to the great talent brought to the endeavor.”

AB | November - December 2015

2015

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Banking on change From regulatory reform to cyber security to funding legalized marijuana, there will be a lot to watch in 2016 By MICHAEL GOSSIE

ight now, Arizona’s banking industry is like a sunny sky after a monsoon. “Our industry is good, but it’s not on fire,” said Paul Hickman, president and CEO of the Arizona Bankers Association, which has been the voice of Arizona’s banking industry for more than 100 years. “We came out of one of the most severe economic downturns we’ve had in Arizona since the Depression — maybe even greater than the Depression because we weren’t that evolved as an economy in the 1930s. It took a toll.” But there is more good news than bad news heading into the new year for the more than 40 banks and credit card operations that are members of the Arizona Bankers Association. Hickman sat down with Az Business magazine to talk about the trends and issues facing his industry and what we can expect to see in 2016. Az Business: How does your industry look going into 2016? Paul Hickman: The banking industry took a hit during the recession and that hit was largely housing driven because Arizona has had a housing economy for the last two generations. We lost 15 banks in five years; but beginning in 2012, we started to gain healthy footing again. The FDIC’s troubled bank list is way down, profits are up, net interest margin is still problematic because of the interest rate, but lending is good and it’s aggressive and multi-faceted. The industry in Arizona is pretty good going into 2016. We are optimistic. AB: Are there trends in lending that are indicators of Arizona’s economic health? PH: We are seeing more commercial real estate, industrial and small business lending, so all of those are indicators of better economic health in Arizona. If you track the unemployment rate, that validates that picture because we are about a point above the national average, which, according to most economists, is almost at full employment.

AB | November - December 2015

AB: Did your industry learn anything from the economic downturn to make it better equipped to handle a future crisis? PH: The regulatory reaction will make the industry stronger. The lesson — when it comes to any bubble — is to not get caught up in that competitive environment because that’s essentially what 2008 and 2009 were all about — a residential real estate bubble. Banks were competing against non-banks and they took the bait. They went in and made risky loans. So the lesson is don’t get caught up in the hype. In terms of the regulatory reaction, it has been a huge overreaction in my view. It has stifled what may have been a faster recovery. AB: How has the increased regulatory climate impacted your industry? PH: It’s been very difficult. Dodd-Frank was not supposed to apply all the way down, but the Consumer Financial Protection Bureau applies to the entire financial services industry. Mortgage regulations in particular hit Arizona hard because we’re a housing-centric state. We’d like to see some of that stuff reformed because the community banks in Arizona that are engaged in small business lending and residential real estate lending were not the problem in 2008, but they’ve been impacted the most because they don’t have the scale to absorb the increased regulatory burden. When a bank has to bring in two new people and all those two people are going to do is compliance, it’s tough because they’re not growing the bank and they’re not putting capital out on the street and they’re not growing the economy. AB: Can we expect any easing of those regulatory burdens? PH: There are several bills at the margins that are going to move through the House and end up in the Senate. There’s not going to be a wholesale repeal of Dodd-Frank. I do think we can expect to see lawmakers consider a fairly comprehensive retooling of Dodd-Frank. It’s going to make politics and banking fairly interesting.

INDUSTRY LEADER: Paul Hickman is president and CEO of the Arizona Bankers Association, whose mission is to engage its members in industry issues and be the catalyst for creating a unified voice. PHOTO BY MIKE MERTES, AZ BIG MEDIA

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Arizona Bankers Association AB: How has consolidation in the banking industry impacted Arizona? PH: It remains to be seen. It’s not over yet. The industry is on a long-term consolidation trend. Twenty years ago, there were twice the number of banks that there are in the United States today. Some people will say that has a profound impact on the rural economy because it creates near monopolies and creates an upward price. In suburb and urban environments, I’m not so sure given a better technology. Millennials don’t want to go into a bank, so you don’t need branches everywhere. You can use your cell phone to deposit checks and pay bills. So some of the consolidation was necessary, but some is being driven by increased compliance costs and that’s why we’re seeing mergers and acquisitions rather than new De Novo applications being filed for new banks. The other reason for that is the interest rate. If you’ve got folks looking to put venture capital onto the street and they’re going to get maybe two percent to capitalize a bank, they are going to find much better returns in a lot of other places. AB: How has technology impacted banking in Arizona? PH: It’s made it more efficient, but it’s made it more expensive to operate. Mobile banking isn’t cheap. If you’re a $2 billion bank, it’s a lot more expensive to go mobile than it is if you’re a $30 billion or $40 billion bank. AB: How has the focus on cyber security impacted banking in Arizona? PH: Cyber security is sucking all the oxygen out of the room right now in terms of policy both internally and externally. It’s really expensive, but it’s not something you cannot do. You’ve go to take prophylactic measures because if you don’t and you get malware placed on your system or you get hacked somehow, it costs a lot of money to remediate that, plus risk to reputation. So banks are staffing up with IT folks and the further down you go at the asset level, the less they’re doing it because the less able they are to do that. AB: Should people be worried about cyber security? PH: We need to watch what’s going on with cybercrime and the evolution of expertise. There’s a bill percolating that requires information sharing. Right now, there’s a liability associated with information sharing on cyber threats. Our industry and the retail industry ought to be able to share information with the government on potential threats. With regards to cybercrime, whoever left the system vulnerable ought to be responsible for remediating the damage caused by the hack. Right now, the banks take the responsibility. But look at Target. That was malware. The banks had to remediate any accounts that were hit and money was taken. Banks also had to replace all of those cards. That’s not insignificant. So if a retailer doesn’t want to go to a chip and PIN because it’s expensive to buy that hardware and they get breached, then they should pay the banks back when the banks have to put money back into their customers’ accounts and replace all of those cards. There shouldn’t be different standards in terms of security for a retailer than there is for a bank and banking standards are the highest. 76

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AB | November - December 2015

Arizona Bankers Association

AB: Why do banks make so many headlines for their philanthropic efforts? PH: There’s something about banking that they just want to give back. At the community bank level, they are not rich by any stretch. They are small businesses like anything else, but they really want to give back. It’s rooted in the history of the industry. If you look around America and Arizona, as we evolved from an agricultural economy to an industrial economy and now to an informational economy, the nicest building in every town was always the bank. The bankers were in the Rotary, Elks Club, on the school board and members of the Cancer Society. That was just rooted in the industry’s history. I’m really heartened by the fact that it remains that way today. Given all the negative press this industry has gotten, to see that people who populate the banking industry still give back to their communities and volunteer their time, it speaks well for this industry. AB: Are banks trying to prevent the legal marijuana industry from gaining financial traction? PH: It’s not that the banking industry is averse to getting involved in the industry, it’s that marijiana is illegal under federal law and we are a federally regulated industry. Our insurance company that we all have to belong to is a federal agency. Banks want to bank a legal multi-billion-dollar industry, but they are afraid that if the FDIC can come in at any time and revoke their insurance, they’re out of business. It’s not that they’re afraid they are going to jail; they’re afraid that they cannot stay in business if an unpredictable agency comes in and decides, “Guess what? We don’t care 78

AB | November - December 2015

what the attorney general says. Under the Controlled Substances Act it’s illegal and if you’re banking it, so you’re in violation of federal law.” It’s clear in the insurance contract that banks cannot do that. Former Attorney General Eric Holder issued several memoranda that tried to make it clear that the legal marijuana industry is bankable if you’re doing it in a state where it is legal, but that doesn’t give the banking industry a lot of comfort because he is no longer the attorney general. AB: How do you think the issue shake out in Arizona? PH: It’s going to be fun to watch. It’s likely to get on the ballot. In the presidential election cycle, it will be likely to pass, so we will join the small group of states that permit recreational marijuana. Once that happens, we go back to the same argument and there is going to be a lot of pressure on the banking industry in Arizona to bank it and some banks probably will, but most won’t. To fix that, we have to change the federal law. AB: What is the most important thing to keep an eye out for your industry? PH: The first thing we’ve got to watch is what the Fed does with the interest rate. If you’re a homeowner, you might see that as a threat. If you’re in the banking industry, we really need to raise the rate. It’s been flat now for eight years. That is somewhat troubling because it’s highly volatile right now. We know that a 25-basispoint increase is very modest, but that increase could shake the markets. But a a 25-basis-point increase will increase earnings for banks because it would increase our net interest margins. A 25-basis-point increase would be meaningful and it’s justified right now.

AB | November - December 2015

Arizona Bankers Association

2016 OUTLOOK While profitability and earnings are up, technology and regulation are changing the business By MERYL FISHLER

he banking industry in Arizona has improved since the the Great Recession; profitability and earnings are up, the number of the FDIC troubled banks list is down and the number of troubled loans and foreclosures are both down. Things are looking great, right? Larger institutions in Arizona are doing well because of their relationship to depositors, according to Michael Thorell, chairman of the Arizona Bankers Association and president and CEO of Pinnacle Bank president and CEO. But the state of the industry is a tale of two stories. Smaller community and regional banks, although improving, are growing fewer in numbers.

TREND OF CONSOLIDATION The long-term trend of consolidation in the banking industry became accelerated due to the dramatic impact of the Great Recession. This distressed economic climate led to ownersâ&#x20AC;&#x2122; fatigue and banks were strung out from the depth of the recession and looking for an exit strategy, said Ed Zito president of Alliance Bank Arizona. This caused Arizonaâ&#x20AC;&#x2122;s banking industry to shrink in terms of the number of competitors. Before the recession, there were approximately 80 banks operating in the state. Now, that number is 67. Chase, Wells Fargo and Bank of America dominate the banking landscape in Arizona, holding 70.6 percent 80

AB | November - December 2015

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Arizona Bankers Association

Mike Brown

Jerry Ernst

Michael Thorell

Ed Zito

“...the state of the industry is a tale of two stories. of statewide deposits, according to the FDIC. The concentration of market share among just a few companies potentially could lead to less competitive rates and fees. “We are not over-banked, we are over-branched,” Thorell said. Another cause of the acceleration of consolidation is the abundance of regulation on the banking industry because of the Dodd–Frank Wall Street Reform and Consumer Protection Act , passed in 2010 in response to the recession. It brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression. It laid out changes in financial regulation that affect all federal financial regulatory agencies and the financial services industry. Post Dodd-Frank regulation provide additional costs as banks are forced to deal with the regulatory burden. Some banks were forced to make proactive mergers to deal with the additional costs, said Horizon Community Bank CEO Jerry Ernst. “It makes it necessary for smaller banks to hire additional people to handle the regulation burden,” said Arizona Regional President Mike Brown of Washington Federal, something some smaller banks cannot afford to do. Another driver of consolidation was the intense competition among banks in a post-recession world, Brown said. People have a larger war chest of cash on hand to tackle the next phase, meaning the same number of banks are fighting for less, he added. 82

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Lastly, there hasn’t been any additional new bank charters, Ernst said. Usually, when banks fail, there are new banks that replace them.

EARNINGS UP IN ARIZONA The economic environment since 2010 has improved and earning are up among Arizona banks. The economy is not robust, but it is doing well, Brown said. Consumers are confident it is heading in the right direction. However, some believe the economy is improving too slowly. But, the economy is more sustainable because of the slowly improving nature, Zito said. A driver of this improvement is that since the economic downturn banks, have improved their efficiency, driving up profits and earnings, experts said. Technology has played a role, making banks more efficient and cost effective. Additionally, the economic diversification of the state’s economy, evident in the increases in loan demand, is another factor driving up profits, Zito added. Profitability has also risen due to the fact that problem loans in Arizona banks have resolved themselves, Thorell said. Problem assets were eating up earnings and relieving that stress has opened doors for earnings. And profitable banks help perpetuate a healthy economy because there is more available capital, Thorell said.

POSITIVE SIGNS Banking experts said trouble loans are down,

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AB | November - December 2015

Arizona Bankers Association foreclosures are down and the number banks on the FDIC troubled banks list is down “Time heals most wounds is probably relevant here,” Zito said. These decreases are due to economic improvement having a positive impact on the industry as a whole. Drops in these numbers can be attributed to an improvement in real estate loans and to an increase in bank capital due the increase in earning, according to experts. Also, with the recovery, people have the option to refinance troubled loan at another bank “The economy is doing better, real estate is doing well, which get some of the banks on the list out of the dog house,” Brown said. The economic recovery has resulted in property values going up and people having equity in their homes again, Ernst added. “Underwriting is more stringent than it was five, six, seven years ago,” Ernst said. One of the outcomes of Dodd-Frank is that it tightened up the definition of an acceptable income-to-debt ration, Ernst said. The consolidation trend also is a factor in bringing down the number on troubled banks. “Some problem banks have been acquired and simply don’t exist anymore,” Thorell said. The impact of this is that there is a nice confidence

AB | November - December 2015

in Arizona’s economy right now, letting a lot of banks do quality loans, Brown said.

IMPACT OF TECHNOLOGY Technology and FinTech are expected to have a big impact now and down the road. “This will be the Uberization of the financial services industry,” Ernst said. This digital revolution in financial services will change the role and relevance of today’s banks. “Electronic banking is going to force us to change and adapt to the newest trends,” Brown said. Electronic banking, including online banking, ATMs and smartphones, are going to force banks to analyze brickand-mortar banks, Brown added. Additionally, experts foresee FinTech — financial technologies software that provide financial services — as a trend expected to have a huge impact on Arizona’s banking industry and the industry nationally in the next five years. However, just because it may be the easiest way to borrow money, doesn’t mean it is the best, Ernst said. There is a trend of overpaying interest with FinTech. But, the speedy nature of FinTech will force banks to move faster towards the “Uberization.”

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Banks and technology companies need each other

hen news breaks about the funding of a hot new technology company, the words “venture capital” or “angel investor” are almost invariably attached. If you were to read headlines alone, you would conclude that banking institutions play a minimal role in providing the technology sector with capital. While it’s true that banks are historically accustomed to providing loans to business with physical collateral assets, it would be a mistake to downplay the important relationship between banking and technology companies. It’s important to understand that all banks are not created equal. Different types of banks have different priorities. While global banks can have internal lending criteria that are not always tailored Steven G. Zylstra to local business needs, some multinational banks differentiate Banking themselves by working with the technology sector. Wells Fargo has done tremendous work for Arizona technology companies. Meanwhile, specialized and local banks can cater their goals and policies to match their surrounding ecosystems. Silicon Valley Bank, which serves venture capital firms, multinational companies and entrepreneurs alike, came to Arizona in 2012. According to a company spokesperson, they chose Arizona due to the “area’s great quality of life, talent pool and affordable living for employees.” Having enjoyed success here, they have continued to expand and announced plans in 2014 to lend at least $100 million to Arizona-based tech and life science companies during the five years that followed. As another great example, the parent of Alliance Bank of Arizona recently acquired Bridge Capital Holdings specifically to increase its ability to serve midsize and multinational technology companies. It’s also crucial to remember that the capital needs of a technology business go beyond raising startup cash. A line of credit is immensely important to technology companies with cyclical business models, allowing them to use the credit during a slow period and pay it down during a growth period. And when a technology company expands its physical infrastructure, as when opening a new facility, bank loans are a perfect solution. There is no denying that in the period immediately after the great recession, banks and technology entrepreneurs could find themselves at odds. Under tremendous pressure to make conservative investments and operating under new legislative mandates like Dodd-Frank, banks were often hesitant to lend to a company without physical assets. A manufacturing company with specialized machines to serve as collateral had a 86

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far easier time dealing with banks than a Software-as a-Service company whose primary assets were intellectual property and top talent. Fortunately, the chilling effects of the recession have begun to reverse in recent years. Interestingly, banks are becoming more and more like technology companies themselves. With a growing need to leverage technology that provides services and security to customers online and through mobile devices, banks have begun filing for patents as never before in their histories. And banks themselves require a lot of technology talent to support those innovations. Worldwide spending on banking and securities IT is projected to hit $563 billion by 2017, according to market analyst firm Gartner. As the importance of intellectual property, the draining effect of patent trolls and the need for IT talent are woven into the culture of banking institutions, you can expect to see a new banking culture that is amenable to finding ways to support technology companies. Technology companies comprise an unparalleled engine of economic growth in contemporary America. Apple is the world’s most successful company. Google is an economic juggernaut with value that comes primarily from intellectual property. It is state banks, with both global and local reach, that will continue to expand their lending to technology companies so they remain an essential part of Arizona’s technological economic engine. Steven G. Zylstra is president and CEO of the Arizona Technology Council.

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FORWARD THINKING Promoting sustainability and conserving resources preserves quality of life

here’s a lot right about Arizona. But unfortunately, all too often we focus on what we think is broken, like our politics, policies and laws. It’s time to change the mindset. After all, perception is reality. Arizona is a leader in environmental sustainability and ranks high in many quality of life indicators. Our cities and towns are demonstrating unique and innovative ways to promote green design, conserve natural resources and preserve our precious desert environment. We’re setting the bar on several fronts. We surpass California and much of the world, when it comes to managing our water supply. The drought has been devastating to California. Water providers and planners in Arizona have worked hard to avoid the same fate. SRP has been a steward of what’s right for Arizona for 112 years, serving power and water needs with a vision of helping the Valley grow

Diane Brossart Arizona Forward

into a vibrant and sustainable metropolitan area. The Arizona Water Banking Authority with its operating partner Central Arizona Project has stored nearly 3.4 million acre-feet of Colorado River water underground to protect against the impacts of shortage. These and other cooperative efforts have greatly increased the resiliency of Arizona’s water supplies. We are without water challenges but bright minds are working daily on innovative ways to respond to potential shortages. Everyone should be part of the solution and engage in this important dialogue. Our state is further breaking new ground in an unprecedented effort to manage the largest forest health project ever undertaken in the U.S. – the Four Forest Restoration Initiative. It envisions restored forest ecosystems on portions of four National Forests along the Mogollon Rim, supporting natural fire regimes, functioning populations of native plants and animals, and thriving forest communities that pose little threat of destructive wildfire. There are a multitude of issues and a fair amount of controversy involved in this massive undertaking but 4FRI is a remarkable program of national significance. Arizona is further excelling in green building strategies. Our state is tied with New York in 10th place nationally for LEED certified buildings, which set the competitive price scale for commercial and institutional real estate in major metropolitan areas. That’s just some of what’s trending. If you want to be inspired by good work that balances economic prosperity and sustainability in individual communities across our state, look to projects recognized in Arizona Forward’s 35th annual Environmental Excellence Awards program. Open to entries statewide for the first time ever, more than 125 nominations were received representing 30 municipalities, 18 of which were from outside of Maricopa

County where the program has historically concentrated. Top honors overall went to the City of Tucson for its Sun Link Streetcar that connects more than 100,000 people with affordable, clean and comfortable travel, linking five districts along a four-mile line with 23 stops along the way. It is the largest, most complex construction project the city of Tucson has ever undertaken and is also the nation’s first Made in America streetcar system in almost 60 years. Arizona Forward has a long, rich history of supporting sustainability initiatives since 1969 when it operated as Valley Forward and focused on metropolitan Phoenix. The mission was expanded statewide in 2013 with impressive results. Large companies and small businesses joined forces with municipalities and government agencies, educational institutions, related non-profits and a host of concerned citizens throughout the Grand Canyon State. They share a vision for environmental quality and economic prosperity throughout Arizona, which is expressed in a robust agenda that includes: a balanced statewide multimodal transportation system; smart growth strategies and open space planning; healthy forest ecosystems; improved air quality; energy alternatives; and a resilient water supply – all under the umbrella of healthy communities. First and foremost, Arizona Forward is a businessbased organization. Members recognize that promoting sustainability, conserving natural resources and preserving our unique desert environment is imperative to maintaining and improving the quality of life here for future generations. Arizona Forward is helping to ensure that decisions about how residents will live tomorrow are made with foresight and imagination today. Diane Brossart is president and CEO of Arizona Forward.

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ARIZONA FORWARD

Forests in jeopardy

Arizona needs healthy woodlands for clean water and quality of life, experts say By CHERYL HURD

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ense forests that blanket millions of acres in northern Arizona are a lightning strike away from a potentially catastrophic wildfire that could threaten our quality of life statewide. Healthy forests impact air quality and maintain our water supply through watersheds that feed the Verde and Salt rivers. They also contribute to our state’s economy through tax revenue and billions of tourism dollars. Ongoing fire suppression that encouraged an abundance of fuel growth combined with continuing drought conditions have created a dangerous tinderbox that, if left unchecked, has the potential to compromise our major water sources and air quality, damage homes and business, cause flooding and soil erosion, endanger wildlife, and forever change the landscape that once enticed tourists who contribute to a robust state economy. Arizona Forward, a business-based environmental public interest organization, formed a committee of more than 25 people, including those from the Nature Conservancy in Arizona, the Ecological Restoration Institute at Northern Arizona University and the Sustainable Economic Development Initiative, to study the issue. In an effort to increase awareness and educate the community about the importance of forest health, the organization released a primer that details the critical state of our overgrown forests, the potential problems that impact the entire state and possible solutions.

Changing landscape Eric Marcus, executive director of the Sustainable Economic Development Initiative, explains, “Historically, Arizona forests had roughly 50 trees per acre and that same acreage today is supporting up to 1,000 trees. Much of that growth is small

diameter trees that are competing for nutrients and water. They are less healthy and highly susceptible to fire and insect infestation. That is an enormous fuel load. The fires burn hotter, longer, and the acreage is much more significant.” What once would have been a fast moving, low-intensity ground fire, that singed trees and left scorched grasses to add nutrients to the soil, now utilizes the Diane Brossart dense vegetation to build mega fires that obliterate old growth trees and leave soil exposed and vulnerable to flooding. “If we don’t get our forests more healthy, we will lose those beautiful old trees and put our water in jeopardy. We can’t afford to do nothing,” Marcus says, explaining that the problem stretches throughout the West. “Look at California’s recent fires, the property damage, lives taken. If it were not for the rains we had in June and July, that same loss of life and property that Eric Marcus California is experiencing could have happened here in Arizona,” Marcus says. Diane Brossart, president and CEO of Arizona Forward, suspects most Arizonans are unaware of the overall impact wildfires have on residents throughout the Grand Canyon State. “It destroys our landscape, tarnishes our water supply and hits all of us in the pocketbook,” Brossart says. “Tourism suffers and our quality of life is diminished. It doesn’t matter where in the state you live, you’re impacted.”

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ARIZONA FORWARD

“We need to fix this now and we can. We have the resources. We have the technology. We simply have to exercise the will. The sooner we get started the safer we can make the state. Vital water supply Arizona’s forests are critical to the water supply that supports millions of Arizonans, billions of dollars of agricultural production and our economic future, Brossart says. Marcus agrees, “I don’t think that most of us in the state understand how critically important those forests really are. For example, they provide a majority of drinking water to residents. There’s a 13,000 square-mile watershed around the Salt and Verde rivers that feeds six reservoirs and provides water to almost 2 million residents in the Valley.” In a healthy forest, with a mix of amply spaced trees, grasses and wild flowers, the trees absorb greenhouse gases and melting snow fills the reservoirs. If a major fire ignited in Arizona’s overgrown forests, beyond the loss of thousands of acres of trees, and tons of particulate matter spewed into the air, the land would be void of any ground cover designed to keep soil intact. Rains would sweep through the burned acreage, causing postfire floods. Sludge would carry ash, sediment and debris downstream, destroying natural habitat, contaminating water and lessening the storage capacity of the reservoirs.

Economic impact Replenishing the destroyed land, dredging the sludge from the reservoirs and purifying the water is time consuming and costly. “You also have the costs of wildfires in terms of homes, businesses, lives. It’s the cost of suppression, it’s property losses, it’s damage to recreational resources, evacuation of residents, health related impact. It’s enormous and then there’s costs felt long after: loss of tax revenue, decreased property value, lost business revenue,” Marcus explains. Northern Arizona draws tourists from around the world, contributing $2.5 billion to the state’s tourism industry. When the Slide Fire damaged 20,000 acres near a popular Sedona tourist attraction last year, visitors’ numbers dropped from more than 44,000 in June 2013 to about 2,700 in June 2014 and revenue plummeted from $8,000 a day to $200 a day. The Sedona Chamber of Commerce estimated the overall financial loss of that fire to exceed $100 million. With three million acres in Northern Arizona at high 94

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Michelle Olson, APR President Fingerpaint fingerpaintmarketing.com Interest in environment: “I was a kid in the 1970s when the ‘crying Indian’ commercial was running, illustrating the pollution problem of the era. That, coupled with long gas lines, protests in front of bulldozers and stories about acid rain — remember that? — awakened my sensitivities to man’s impact on the environment.” Interest in Arizona Forward: “I moved to Phoenix in 1991 and worked for a PR firm with numerous land use-focused clients. It was clear our city was growing quickly and I wanted to be part of the dialogue to do it wisely. Arizona Forward was where businesses and government could meet and offer solutions for growth-oriented issues of the day.” Issue to watch: “The sale of State Trust lands will have a huge impact. Potential development of several million acres, some in prime urban locations, will impact water, air and transportation, and the livability of our state.”

ARIZONA FORWARD risk for wildfire, the uncertainty also impacts businesses considering relocation. “How do we attract businesses to Arizona when they are concerned if we are going to have a water supply or if they are concerned about if we are going to have catastrophic wildfires?” Marcus asks. “We need to fix this now and we can. We have the resources. We have the technology. We simply have to exercise the will. The sooner we get started the safer we can make the state.”

Forest products industry returns Work has already begun with the Four Forest Restoration Initiative, designed to restore and maintain more than 300,000 acres in the Coconino, Apache-Sitgreaves, Kaibab and Tonto forests by using a variety of methods that include thinning and prescribed burning. “If we want to protect our old growth forests, we have to remove the fuel that is sitting around them,” Marcus says. He says the forest product industry needs to return to Northern Arizona and reports that timber mills are emerging in Williams. Advanced technology, like GPS satellite to locate specific smalldiameter trees, is streamlining the removal process. “We can use private, commercial business to help us do that thinning to help mitigate the cost of forest thinning,” Marcus says, adding that businesses can take the problem of too many small trees and turn it into an opportunity. “Technology is coming around now to be able to make use of that material. Arizona could be a leader in the biomass industry. We have the resources to do it.”

More to be done Brossart asks Arizonans to get involved. “Arizonans need to express their support for forest thinning and prescribed burning, reestablishing a forest products industry, adaptive management of treated forest lands and limiting fire borrowing so these projects can be fully funded.” Fire borrowing is the process of shifting money designated for forest maintenance and restoration and using it for fire suppression. Without the availability of disaster relief funds and with the cost of suppression so much higher than maintenance and restoration, the operational budget is rapidly depleted, leaving little funding for restorative efforts. Forest fire fuel continues to grow, larger fires ensue, and the cycle continues. “These catastrophic fires are getting worse every year,” Marcus says, “and we have the ability to prevent billions of dollars in damage by spending a few million dollars today.” He explains that there are bills currently in the legislature to address this problem but no resolution has materialized. “Don’t minimize calling your representatives,” he says, “That’s how things get changed.” He says residents should also talk with city officials and state legislators. “I would like to see the state of Arizona take a leadership role in moving forward for a solution that gets us healthy forests.” “Only when we get the majority of the people who live in the state to appreciate the importance of this problem will we be able to move in the direction we need to so we don’t have these catastrophic fires,” Marcus says. 96

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David R. Skinner, PE Area Operations Manager HDR hdrinc.com Interest in environment: “Environmental issues are all around us and the choices we make every day deeply impact our environment, from how we commute to work to how we choose to recycle at home to packing out our trash from a weekend camping in the woods.” Interest in Arizona Forward: “As a recent transplant from Washington State, I was told that I must become involved with Arizona Forward because of the organization’s broad depth of commitment to the environment and all the things in our state that impact it. Because of both my own and my company’s connection to the environment, it was an easy connection to make with AZF.” Issue to watch: “The biggest impact to Arizona’s economy and the environment will be a well thought-out balanced investment in multi-modal transportation infrastructure. Transportation solutions that reduce environmental impacts yet expand Arizona’s economic growth like light-rail will allow us to grow while being good stewards of the environment.”

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ARIZONA FORWARD

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CHAMPIONS Arizona Forwardâ&#x20AC;&#x2122;s Environmental Excellence Awards spotlight those projects, plans and processes that make our state a healthier place

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t’s refreshing in this day of constantly evolving technology that a re-imagined, centuries-old mode of transportation has grabbed the spotlight. The Sun Link Tucson Streetcar — the first “made in America” streetcar in nearly 60 years — earned the coveted President’s Award at Arizona Forward’s Environmental Excellence Awards, which celebrated its 35th anniversary in 2015. Arizona Forward and SRP presented 17 first-place Crescordia awards and 31 Awards of Merit.

Jurists selected the Sun Link Tucson Streetcar for top honors because the iconic project is vital to improving the look and feel of downtown Tucson, while providing a much-needed boost to the community’s infrastructure. The $196 million endeavor is the largest and most complex construction project the city of Tucson has ever undertaken. The construction of the streetcar generated more than 500 jobs and triggered six new housing projects along the corridor. Boasting about 4,000 riders per day, this innovative project is fostering and connecting a healthy, vibrant community in southern Arizona. In addition to Sun Link Tucson Streetcar, Crescordia winners for 2015 include: Governor’s Award Arizona’s Future:

Team Arizona Colorado River Shortage and Drought Preparedness. Submitted by City of Phoenix/CAWCD/ ADWR Partnership. Awards of Merit: Central Arizona Conservation Alliance, submitted by Desert Botanical Garden; NAU Solar Thermal Air Heating, submitted by Northern Arizona University. Buildings and Structures — Civic:

Mariposa Land Port of Entry. Submitted by Jones Studio. Awards of Merit: El Mirage Fire Station and Administration, submitted by LEA Architects, LLC; City of Maricopa City Hall, submitted by Gensler. Buildings and Structures — Historic Preservation: The University of Arizona Old Main

Restoration. Submitted by Sundt Construction, Inc. Awards of Merit: The Newton, submitted by John Douglas Architects; Silver King Marketplace/Padilla Park, submitted by EPG. Buildings and Structures — Commercial and Institutional: Museum of

Northern Arizona Easton Collection Center. Submitted by Kinney Construction Services, Inc. (KCS). Awards of Merit: Arizona State University Downtown - Sun Devil Fitness Complex, submitted by Gabor Lorant Architects, Inc.; The Village at Prescott College, submitted by Weddle Gilmore black rock studio. Buildings and Structures — Industrial and Public Works: Regional Optimization

Master Plan, Submitted by Pima County Regional Wastewater Reclamation Department. Awards of Merit: Clarkdale’s Broadway Water Reclamation Facility, submitted by Water Infrastructure Finance Authority of Arizona; Cornell Cookson Industrial Door Manufacturing and Offices, submitted by Jones Studio. Healthy Communities — Sustainable Communities: Downtown Tolleson

Redevelopment Project: Paseo de Luces. Submitted by J2 Engineering and Environmental Design. Awards of Merit: Stepping Stone Place, submitted by Chasse Building Team; Mountain Park Health Center, submitted by SmithGroupJJR. AB | November - December 2015

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ARIZONA FORWARD

Healthy Communities — Multimodal Transportation & Connectivity: Sun Link Tucson

Streetcar. Submitted by Engineering and Environmental Consultants. Awards of Merit: Hardy and University Drives Streetscape Projects, submitted by City of Tempe; GRID Bike Share, submitted by City of Phoenix. Healthy Communities — Public Policy and Plans: Low-Impact Development Toolkit. Submitted by City

Arizona Trail Association’s Gift to Arizona. Submitted by Arizona Trail Association Awards of Merit: Echo Canyon Recreation Area Trailhead Improvements, Ssubmitted by EPG; Riverview Park, submitted by City of Mesa Art in Public Places: Phoenix Sky Harbor Terminal Three

Phoenix Planning and Development Department; Northern Arizona Forest Fund, submitted by National Forest Foundation.

Sky Train Station Platform and Bridge. Submitted by City of Phoenix Office of Arts and Culture. Awards of Merit: Shade for Transit Series, submitted by City of Phoenix Office of Arts and Culture; Pinnacle Peak Water Reservoir Public Art Project, submitted by City of Phoenix Office of Arts and Culture.

Healthy Communities — Sustainable Workplaces: Honeywell Arizona Aerospace - Being the

Environmental Education/Communication — Public and Private Sectors: City of Peoria Sustainable

of Mesa.

Awards of Merit: ReinventPHX, submitted by City of

Difference!, submitted by Honeywell. Awards of Merit: Risk Recycling, submitted by Maricopa County Risk Management; Workplace Wellness Nurtures Work Well Done, submitted by U-Haul International. Energy and Technology Innovation: Solar Thermal Hot Air Technology. Submitted by Northern Arizona University. Awards of Merit: IO Modular Deployment, submitted by IO; InfinitPipe®, submitted by QuakeWrap, Inc. Site Development — Public Sector: Arizona State University, College Avenue. Submitted by SmithGroupJJR. Awards of Merit: Phoenix Tennis Center, submitted by Hoskin Ryan Consultants, Inc.; GateWay Community College Integrated Education Building, submitted by SmithGroupJJR. Site Development — Private Sector: Valley Partnership Community Project. Submitted by Arizona Foundation for the Handicapped Award of Merit: Airport I-10, submitted by Wespac Construction Inc. Site Development — Parks and Trails: The 102

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U. Submitted by City of Peoria. Awards of Merit: 7th Avenue @ Melrose Curve Recycling Awareness, submitted by City of Phoenix Office of Arts and Culture; Avondale - I Heart Environment, submitted by City of Avondale. Environmental Education/Communication —

Educators, Students, and Nonprofit Organizations: Bachelor of Architecture Sustainability Pedagogy. Submitted by University of Arizona School of Architecture. Awards of Merit: Mrs. Green’s World, submitted by Mrs. Green’s World; Water RAPIDS (Research and Planning Innovations in Dryland Systems) Program, submitted by Water Resources Research Center, University of Arizona. SRP Award for Environmental Stewardship:

Arizona State University Facilities Management Grounds/ Recycling. Submitted by Arizona State University. President’s Award (Best of Show): Sun Link Tucson Streetcar. Submitted by Engineering and Environmental Consultants.

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BE A PART OF SOMETHING BIGGER THAN ALL OF US.

Together, we can keep Arizona beautiful. SRP is proud to work with its customers on programs that help reforest land destroyed by fire, support solar for local nonprofits and encourage the adoption of electric vehicles. After all, taking care of Arizona takes all of us. Thatâ&#x20AC;&#x2122;s why SRP demonstrates environmental leadership by 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.

150 years of kindness The Salvation Army celebrates 150 years of meeting the physical and spiritual needs of those in need.

30 YEARS OF EXCELLENCE

Salvation Army 150 th Anniversary

MARCHING ON

Salvation Army celebrates 150 years of helping those most in need

By MERYL FISHLER

illiam Booth’s mission was to help feed the hungry and homeless and lift up the thieves, prostitutes and drunkards who needed salvation in the abject poverty of London in 1865. As he helped people one at a time, he probably never could have imagined that his mission — which he named the Salvation Army — would be serving in 124 countries around the world and meeting the physical and spiritual needs of those in need 150 years after his vision became a realization. This year marks the Salvation Army’s 150th

anniversary internationally and it has been a social service provider in the Southwest since 1893. The Salvation Army has a presence in 127 countries and nearly 8,000 centers of operation are in place across the United States. The Salvation Army will be honoring this historic milestone with a 150th celebration event on Nov. 12 at the Arizona Biltmore, which will showcase the Salvation Army’s rich history from London to the impact it’s had in Arizona. “We are hoping that this event will also be a launch for our strategic outreach of continuing to meet the

150 years of history

1865 The Salvation Army begins when William Booth, a London minister, took his message to the poor, the homeless, the hungry and the destitute.

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1882 The first Salvation Army band was formed by accident when the Frye family offered their services as bodyguards to street preachers.

Ways to help Monetarily: According to the Army’s most recent annual report, more than 80 cents of each dollar donated to The Salvation Army is used to fund direct services for people. Volunteer: Support helps the Army ensure each dollar donated is directed to services. Donation of goods: Money raised from the sale of these items in the Army’s thrift stores directly support the Army’s Adult Rehabilitation Program. Information: salvationarmyphoenix.org

growing needs of those who come under our influence each day,” said Lt. Col. Joe Posillico, the southwest divisional commander for the Salvation Army.

Impact in Arizona

Marlene Klotz-Collins

Lt. Col. Joe Posillico

The Salvation Army’s presence in Arizona dates back to before statehood, when Captain William McIntyre founded the Army in Phoenix. The Army’s first unit of operation in the state was at one of Phoenix’s most notorious saloons, “The Road to Ruin,” Posillico said. Once the saloon was taken over by the Army, it was renamed “The Road to Heaven” and Mclntyre led open-air religious meetings

1891 The red Christmas kettle debuted in San Francisco as a crab pot to help the hundreds of local seamen and longshoremen who were out of work.

1893 The Salvation Army established its roots in Arizona, providing services to the homeless, working poor, children, youth, addicted, elderly, and abused.

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Salvation Army 150 th Anniversary to attract converts to the faith, while also helping the needy, said Marlene Klotz-Collins, a volunteer and member of the Salvation Army Phoenix Advisory Board for 32 years. Â The Army quickly spread to Prescott and Tucson. Since then, the Army has had a significant impact in the state, from serving those in the 1930s who ran out of money while traveling through Arizona en route for California, to opening different community centers. Today, the Salvation Army operates across the state with different communities centers and social service outreach. There are 25 corps serving communities with countless social services, ranging from helping the homeless to substance abuse recovery to helping disadvantaged youth. Additionally, there are 35 service extension units serving the rural areas of Arizona that are too small to support a full corps, Posillico said. The Army also has two adult rehabilitation centers, one in Phoenix and one in Tucson. Each center offers a free six-month substance abuse recovery program. The Army also operates low-income senior housing, a homeless shelter and a domestic violence shelter.

Meeting the needs Collectively, these operations and a host of other

150 years of history

1906 The great San Francisco earthquake. The Salvation Army responded to the disaster. Operation cost? $4 million, The Armyâ&#x20AC;&#x2122;s entire resources for the year.

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1929 Great Depression. Social services increased 700 percent. Soup kitchens fed the homeless, unwed mothers homes remained open by donations from local farmers and merchants.

“There are many individuals, foundations and companies that have shown their trust and support of the Army in the new avenues we have taken programs address emergency assistance needs, disaster services, help for seniors, aid to the military, holiday dinners, academic and sports programs for youth and daily meals provided to shut-ins. “I believe the Salvation Army has a profound impact on Arizona, particularly when focusing on the enormous range of programs and services provided throughout our state,” Klotz-Collins said. The Salvation Army touches a lot of communities in Arizona, whether it be through one of its community centers, low-income housing residences, social service outreach, substance abuse programs or one of the local community based service extensions. “With the exception of the government, the

1934 The Salvation Army gets its first female general in Evangeline Booth, daughter of founder William Booth. Before her appointment, Evangeline Booth was national commander in America from 1904-1934.

Salvation Army may well be the largest provider of social services in Arizona, touching countless areas of need,” Klotz-Collins said. “The Salvation Army not only provides a pathway of hope to those who need it most, it is also one of the best kept secrets.”

Arizona accomplishments Among the Salvation Army’s significant accomplishments in Arizona is the construction and opening of the Ray and Joan Kroc Community Center at South Mountain. Since the opening of the Kroc Center, the Salvation Army has been exposed to new sources of trust and development, Posillico said. The state-of-theart center has increased and enhanced the programs

1941 During World War II, The Salvation Army led the charge for the creation of the USO. Red Shield Clubs offered servicemen the hospitality of a “home away from home.”

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Salvation Army 150 th Anniversary OFFICE SPACE: This trailer was loaned loaned to the Salvation Army by SRP while the Broadway Youth & Family Center was being built. It was an administrative office, where all the plans were done for youth and family programs and where children did their after-school programs. Pictured with the two boys is Captain Joe Noland, the Salvation Army’s corps officer at the time, who was called down from Flagstaff to build and open the center. Noland’s rank is now commissioner.

150 years of history

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2000

2001

The Salvation Army joined a collaboration of NGOs, government agencies and civil societies to combat worldwide poverty through the UN’s Millennium Development goals.

After the Sept. 11 attacks, the Salvation Army showed compassion under fire, setting up an emergency disaster services operation at Ground Zero. It is here that the Salvation Army was able to serve rescue and response workers looking for food and rest.

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and services that were offered at the original Salvation Army facility, which opened in 1968 and has consistently served the community for more than 40 years. “There are many individuals, foundations and companies that have shown their trust and support of the Army in the new avenues we have taken,” Posillico said. “We believe we are on the verge of taking all of this to the next level.” Another significant Arizona achievement is the newly rebuilt Herberger Campus, which houses the Salvation Army’s administrative, social services, and shelter facilities, in addition to the warehouse for its Christmas and food distribution program. The Salvation Army also has a number of new and upcoming projects: The Salvation Army has moved the West Valley Sun City Community Center to a new 35,000-square-foot facility off Bell Road and the Avenue of the Arts. Construction has also started on a new 10,000-square-foot community center in Sierra Vista. A new 40,000-square-foot Hospitality House and Social Service Center was built in Tucson and opened last summer. Yuma will be seeing a ground breaking for a new Salvation Army Boys and Girls Club facility in the next few weeks. Posillico said strategic planning over the next 5-10 years will include programs in Chandler, Estrella

2012 The Salvation Army’s Ray and Joan Kroc Community Center at South Mountain opened and its programs in arts, education, recreation, wellness and spiritual guidance have served more than 42,000 people with approximately 60 percent of those being children.

Mountain, Flagstaff, South Tucson, Maryvale and the Camp Ponderosa campus in Heber.

Filling a need Salvation Army officials said the organization’s programs attempt to address the overall needs of individuals, including their physical, social, mental and spiritual needs. “We are motivated by a spiritual calling from God and a drive to help individuals reach their full potential and to be stable in their lives in those four areas of need,” Posillico said. In addition to the Salvation Army’s 150th anniversary, this year also marks the 30th anniversary of the Christmas Angel program, which helps more than 50,000 Valley children every Christmas season, Klotz-Collins said. “I will always consider being part of the team involved in the formation and ongoing growth of the Christmas Angel program as my greatest privilege and accomplishment with the Salvation Army,” Klotz-Collins said. More than a century and a half later, the Salvation Army still responds to many of the same issues that its founders, William and Catherine Booth, faced in 1865. “They gave humbly and with heart and soul to serve mankind,” Klotz-Collins said. “That sense of mission and humble spirit will never change.”

2015 The Salvation Army helps more than 34 million people through programs and services addressing poverty, domestic violence, homelessness, hunger and addiction.

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You know us for our red kettles. Thatâ&#x20AC;&#x2122;s just a drop in the bucket.

To feed, to clothe, to comfort, to care. That is our mission. Thanks to your support, The Salvation Army serves nearly 30 million Americans each year. From disaster relief and

domestic violence outreach to homeless services and youth programs, we help children, families, and adults here in the Valley. To learn more, visit salvationarmyphoenix.org.