What You Should Know Now

Wells Fargo + AT = SB12: Protect and Serve

City of Atlanta Victorious in Appeal of Airport Concessions Contract Awards

On Tuesday, Procurement Appeals Hearing Officer George F. Maynard denied SSP America, Inc.’s protest of the award of five large food and beverage contracts to other companies. Hearing Officer Maynard issued a thorough, detailed and well-reasoned 25-page Order after three full days of hearing, during which he heard testimony from eleven witnesses and reviewed hundreds of pages of exhibits. He concluded: “The solicitation for the Large Food Packages was conducted in accordance with applicable law and the terms and conditions of the RFPs. . . . There is no evidence that the procurement process should be voided as ‘unfair, fraudulent, or corrupt,’ as alleged by [SSP America].”

Losing proponent SSP America has insistently argued, without a single shred of supporting evidence, that the airport concessions procurement process was flawed, and that contracts were awarded based upon political relationships, rather than merit. Hearing Officer Maynard expressly rejected SSP America’s unfounded accusations, concluding that “There was no evidence presented as to any specific wording in the RFPs (whether drafted by Mayor Reed or otherwise) that would work to the advantage of any given proponent over that of [SSP America]. .... None of the evidence, circumstantial or otherwise, established a link between a campaign contribution and a contract award, or how such a link would have operated to influence the Evaluation Panel, the OCC, the DOF and/or the DOP.” He specifically noted that, “There was absolutely no evidence presented which would support any allegations of a ‘pay to play’ culture in connection with this procurement.”

From the moment SSP America learned it would not be awarded a contract, it has continuously attempted to derail the airport concessions procurement process in both administrative and judicial arenas. Previously, Judge Cynthia Wright, Chief Judge of the Fulton County Superior Court, denied SSP America’s attempt to prevent the City from signing the concessions contracts, finding that the procurement process is “intended to be in the interest of the public, not that of an aggrieved, frustrated bidder.” Hearing Officer Maynard’s Order denies SSP America’s latest attempt to undermine the procurement process.

The City is hopeful that SSP America, having now lost three legal challenges to this procurement process in as many tries, will finally cease its litigious and wasteful efforts to overturn the fairest, most open and transparent procurement process in the City’s history. If it does not, however, the City will continue to respond as appropriate to any further challenges that may come.

The new Maynard H. Jackson Jr. International Terminal, complete with new food and beverage and retail concessions outlets, is scheduled to open on May 16, 2012. The City expects the airport to realize net annual revenue in the amount of $51.1 million as a result of the new food and beverage contracts. This represents an increase of over $23 million, annually. The new International Terminal will be a signature addition to the Hartsfield-Jackson Atlanta International Airport - the world’s busiest airport and the number one economic engine in the City of Atlanta and surrounding metropolitan area.

Wells Fargo + AT= SB12: Atlanta Peach Movers

NEW POST! Wells Fargo + Atlanta Tribune = SB12: Maceo Brown and System 5 Electronics

Citizens Trust Bank President and CEO James E. Young Dies at 62

Young Joined Atlanta Tribune for its 25th Anniversary Celebration in December and received the esteemed Sustainability Award for contributing to the lifeblood of Atlanta's African-American community.

Citizens Trust Bank, a subsidiary of Citizens Bancshares Corporation, has announced the death of James E. Young. President and CEO since 1998, James E. Young died after a brief battle with cancer.

A native of Cleveland, Tennessee, Mr. Young served as a member of the Board of Directors for: The National Bankers Association, The Atlanta Action Forum, Central Atlanta Progress, The Commerce Club and Rock-Tenn Company. In addition he was a member of the Board of Councilors of The Carter Center, the DeKalb County Chapter of 100 Black Men of America and Antioch AME Church in Stone Mountain.

He is survived by his wife Rebecca Young, of over thirty years, three sons and a daughter.

James E. Young joined Citizens Trust Bank of Atlanta on February 2, 1998 as President and CEO as a result of the merger of the institution and DeKalb County's First Southern Bank, where he had been President and CEO since 1993.

Attributing much of his success to consistently striving for excellence, Mr. Young, until his death, remained a steward of dignity and humility. Under his guidance and direction Citizens Trust Bank continued to be safe, sound and well capitalized.

"The passing of Mr. Young has left us deeply saddened. He will be tremendously missed but not forgotten," said Cynthia N. Day, newly appointed President and CEO of Citizens Trust Bank. "Mr. Young has left a lasting impact on us all with his wisdom, his character and his ability to inspire others. We will continue to honor him and the legacy he has left. Citizens Bancshares Corporation's Board of Directors, management team and staff continues to embrace and pray for the family to show our support."

Source: PRNewswire

Wells Fargo + AT= SB12: Corporate Temps

What Are Atlantans' Stances on Retirement, Healthcare, and the Possibility of Living to 100 years old?

The latest iteration of the Merrill Lynch Affluent Insights Survey (MLAIS), released today, reveals new insights about Atlantans’ perspectives on retirement, healthcare, and the possibility of living to 100 years old.

Atlanta residents continue to redefine retirement – the majority (78%) plan to work part or full time in retirement, and only 21 percent define retirement as “never working again.”

While many Atlanta individuals surveyed feel thankful (35%) or optimistic (25%) about the prospect of living to 100 years old, 77 percent admitted they would approach money management differently if they knew today that they were going to live that long.

According to the survey, Atlantans are concerned about outliving their assets (64%) and affording the lifestyle they want in retirement (56%), and the rising cost of healthcare continues to be their number one concern (77%). However, despite their continued concern, more than two-thirds (69%) have not estimated what their healthcare costs might be during retirement years.

Within the full survey findings below, you’ll see Atlanta residents offer solutions for fixing Social Security, disclose what’s top of mind for them heading into the Presidential election, and reveal what would encourage them to invest more for their retirement.    

Merrill Lynch Affluent Insights Survey™ – Atlanta

Atlanta investors plan to work part or full-time in retirement, and only “retire” when they feel they have saved enough to support their desired retirement lifestyle.

• As it stands today, 78 percent of local respondents see themselves working part or full-time in retirement. Only 21 percent define retirement as “never working again.”
• When asked what they expect most will lead them to retire, only ten percent of Atlanta non-retirees cited “hitting a certain age.” They believe the number one factor that will lead them into retirement is feeling their assets will allow them to live the lifestyle they want (33%) during their remaining years.
• The majority of local investors are concerned about whether their retirement assets will last throughout their entire lifetime (64%), and more than half (56%) are concerned they won’t be able to afford the lifestyle they want during retirement.
• If given the choice, nearly half of local respondents (49%) not yet retired would rather retire later than make trade-offs to their current lifestyle. On the other hand, 43 percent said they would make trade-offs today in order to retire when and how they’d like to. 
• One-third (36%) of all local respondents lack confidence that their current saving and investment strategy will support their desired lifestyle during their retirement years.  When asked about the reasons for their uncertainty, 50 percent said the recession took a toll on their finances, 34 percent cited uncertainty about whether programs such as Social Security and Medicare will be there when they need them, and 29 percent cited a lack of savings. These statistics are far higher than the national average and all other sampled markets (30%, 19%, and 18% nationally, accordingly).
• While it is commonly known that many Baby Boomers are struggling to save for and fund their retirement, Atlanta respondents believe investors under the age of 35 won’t have it any easier when it comes to saving for retirement (80%).

Local respondents are more concerned than ever with the financial implications of healthcare costs in retirement, but few have begun to plan for it.

• Despite the rising cost of healthcare being their top financial concern in every MLAIS survey since 2009, more than two-thirds of local investors (69%) have not estimated what their healthcare costs will be during their retirement years. 
• When asked how they plan to fund their healthcare costs in retirement, local investors said some combination of Medicare (41%), healthcare benefits from their current/former employer (39%), private health insurance, (38%) and long-term care insurance (28%).
• One-third (36%) indicated that they are more concerned about the financial strain and costs associated with a significant, unexpected healthcare situation such as a chronic illness or disability  than their quality of life being comprised from such an event.

Atlanta investors would approach money management differently if they knew today that they were going to live to be 100.

• Many local individuals surveyed feel thankful (35%) or optimistic (25%) about the prospect of living to 100 years old. 
• However, 77% report they would approach money management differently if they knew today they were going to live to be 100. To financially accommodate a longer life, Atlanta investors would:

o   Work at least part-time during retirement (51%)

o   Pay off mortgage and other debt sooner (44%)

o   Work with a financial advisor to re-evaluate investments/savings (41%)

o   Adopt a more conservative investment approach (41%)

o   Purchase long-term care insurance (40%)

o   Contribute more to a 401(k), IRA or other retirement savings vehicle (39%)

o   Invest in a product that guarantees lifetime income, such as an annuity (38%)

Major issues to be debated by candidates among top concerns for local respondents

• Three out of four local investors (74%) are highly concerned about this year’s Presidential election. Among the major issues they find concerning today are also those likely to be heavily debated leading up to the election, including the rising cost of healthcare (77%), our nation’s budget deficit (75%), the lingering unemployment rate (72%), and the potential for rising tax rates (68%).
• Social Security reform is also a top concern in 2012, with 65 percent of those surveyed locally concerned about the program’s future. Additionally, the majority (53%) believe that the age at which Americans are eligible to collect Social Security benefits should be raised in light of longer life expectancies. 
• Following a year of global economic instability, Atlanta investors also cited the following among concerns in 2012:

o   Our nation’s political standing with the world (63%)

o   The possibility of a double dip recession (62%)

o   The European financial crisis (60%)

Atlanta investors resolve to improve their financial future in 2012, but are hoping the economic, market and political environment will lend a hand too

• When asked what would encourage them to start saving or investing more for their retirement, local respondents cited:

o   A less volatile stock market (48%)

o   Improvement in the job market (47%)

o   A change in U.S. political leadership (42%)

o   More international economic stability (38%)

o   Greater incentives from their employer, such as implementing/increasing a 401(k) match (38%)

o   Better incentives from the government, such as raising 401(k) contribution limits or offering greater tax incentives for long-term saving and investing (36%)

• Many are balancing competing goals in the current economic environment, trying to pay down debt, while saving for retirement. Thirty-seven percent of Atlanta investors believe that their current level of debt impedes them from saving as much as they’d like to for retirement, more than in any other market sampled.

Atlanta respondents cite financial advisors as the person they trust most to provide advice on retirement investments and their overall financial future – more so than their spouse/partner, family members or business colleagues

• When asked what retirement-focused topics they would like to discuss more with their financial advisor, they cited:

o   Managing cash flow and liquidity in retirement (37%)

o   How they hope to live their life during retirement years (37%)

o   The impact of rising healthcare costs on their retirement income (34%)

o   How to financially plan for the possibility of living to be 100 years old (30%)

o   Balancing/managing competing near- and long-term financial demands (27%)

o   Making better lifestyle choices today to benefit their long-term financial picture (27%)

o   Choosing the right Medicare coverage and other healthcare decisions (24%)

• Local investors said the best piece of advice they received from their financial advisor in 2011 was to “stay the course” with their long-term investment strategy (43%).
• When asked about qualities their financial advisor possesses that keeps them loyal to the relationship, local respondents said their advisor:

o   Understands and respects their preferred methods of communication, e.g. face-to-face, email, phone, social media (65%)

o   Understands their current financial situation (64%)

o   Provides relevant research and market insights to help them feel informed and in control (63%)

o   Holds industry certification or designations (61%)

o   Understands their goals, dreams, and personal values (58%)

 

About Merrill Lynch Affluent Insights Survey™

Merrill Lynch Affluent Insights Survey™ is a report examining the values, financial priorities and concerns of affluent Americans. The survey was conducted by Ketchum Global Research & Analytics and Braun Research over the phone between December 14 and December 29, 2011 on behalf of Merrill Lynch Global Wealth Management. The nationally representative sample consisted of 1,001 affluent Americans (ages 18+) with investable assets in excess of $250,000. At least 300 affluent Americans were oversampled in each of the 5 target markets including Atlanta (303); Chicago (308); Dallas (308); Detroit (308) and San Francisco (300). The margin of error is +/- 3.1 percent for the national sample and +/- 5.7 percent for the oversample markets, with both reported at a 95 percent confidence level.

Human Tragedy and Triumph = Ratings Magic

I am always fascinated by the impact of human emotions on our consumer behavior – whether those emotions are inspired by tragedy or triumph.  Two television broadcasts made ratings history recently, one because of a tragedy and one because of a triumph:  the 54th Annual Grammy Awards on CBS and the contest between the Los Angeles Lakers and the New York Knicks, February 10, on ESPN.

Nielsen research has proven Americans love sports and music programming. African- Americans are typically well-represented in both.   The Grammy Awards have been a viewing favorite. Research backs up the common sense notion that Blacks tend to gravitate to programming where there are larger numbers of people who look like us – but this year, the number of us who watched the Grammys was almost off the charts (no pun intended).    The recent 54th Annual Grammy Awards attracted nearly 40 million viewers (39.9 million), which made it the largest Grammy audience since 1984 and the second largest in the history of the broadcast.  Of those 39.9 million viewers, African- Americans made up 6.21 million.  That means a whopping 60% more Black folks watched the Grammys this year than last (3.7 million out of a total viewership of 24.7 million in 2011).
 
Some people like me may tune in to see who’s wearing what.  How fabulous will our favorites be, or how outrageous?  Others are true music aficionados.  While the why for this year’s phenomenal success of the Grammys has not yet been officially analyzed, I suspect that the tragic news of the sudden death of beloved music icon Whitney Houston the night before piqued the increased interest.  If you were like me and my friends, we were reeling with disbelief.  Tuning into the Grammys seemed to offer a kind of solace and comradery in our collective desire to pay homage to a musical phenomenon who was one of our own.

Now, in the interest of full disclosure, the show didn’t hold my attention for long beyond the luscious LL's prayer for "our fallen sister" (a very nice touch). But after his intro and having glimpsed the outrageous outfits of Nicki Minaj, Gaga and the sweet acknowledgements from Alicia Keys and Bruno Mars, I begged my Facebook friends to wake me up when they got to the Whitney tribute. Someone from Ft. Wayne, Ind. (my hometown) actually alerted me when Glen Campbell's tribute came on. (You couldn't grow up in the Fort without being inundated with his music back in the day). So I loudly and proudly sang along to the tribute.  My son watched me with his mouth hanging open in disbelief. "Really, mom?! Seriously, you LIKE this country music?" (If he reacted like this to my Glen Campbell tribute, he does NOT want to be around when my sister, his Aunt Natalie, goes berserk over Kenny Rogers).  Following Jennifer Hudson’s moving tribute of “I Will Always Love You,” and after fighting back tears, I clicked off.

On the flip side, Americans love to cheer on an underdog, a “Rocky,” a champion who rises from the ashes of obscurity to achieve victory.   In two words:  Jeremy Lin. It was my basketball-playing son who turned me onto the phenomenon that was taking place with the undrafted 23-year old, Harvard-educated Asian-American from California and his fortuitous match-up against the New Jersey Nets. Lin has averaged 27 points per game – launching him from bench warmer to global superstar.  In addition to a 73 percent increase in viewership of Knicks games on MSG and ESPN in New York, nationally the February 10 game between the Knicks and the Lakers on ESPN was the most-watched Friday night regular season NBA game on the network, so far this season - with just over 3 million viewers.

On top of that, NM Incite (a Nielsen McKinsey company) reports that social media buzz has also hit a frenzied pitch around the world since the first February 4 game.   Even the phrase “LinSanity” has been coined.  The online chatter about Lin has surpassed conversations about the Knicks, LeBron James and Kobe Bryant combined.  Now, that's powerful.  And so are you. Because, if you follow these ratings stories, you know these surges in increased viewership are a result of people just like you and me tuning in. It's great news for the networks as well as the advertisers.  Those advertisers are dedicated to reaching us – the consumers.  Which brings me to my mantra, "Knowledge is power."  The power is in your hands, and so is the remote control.           

 

Cheryl Pearson-McNeil is senior vice president of public affairs and government relations for Nielsen.

Will you sign up for TSA's Pre-Check?

Soon you may no longer have to shuffle shoeless through the metal detector while holding up your pants. A new, faster screening program is shaking up airport security as we know it, possibly allowing select travelers to stay fully dressed—belt, shoes, and all—while passing through the security lane. PreCheck, an expedited passenger-screening program, will expand to 28 additional U.S. airports this year, according to a press release on the Transportation Security Administration (TSA) website.

PreCheck is a program that permits prescreened flyers to go through a separate, faster security line that may not involve the removal of shoes, jacket, belt, etc. Travelers who've joined the program, which is currently only available at seven test hubs, will soon be able to hustle through a streamlined security queue at 35 domestic airports. Currently, more than 336,000 people are members of PreCheck. Advertisement The program is free, although for now, it's only available to travelers flying with Delta or American at those seven select airports (Dallas, Miami, Las Vegas, Minneapolis, Los Angeles, Atlanta, and Detroit).

The TSA hopes to loop additional airlines into the program as it sets up PreCheck in more airports this year. Those who fly frequently with participating airlines, as well as members of Trusted Traveler programs such as Global Entry, SENTRI, and NEXUS, are eligible to sign up. Previously, American and Delta sent out emails to frequent flyers that contained instructions on signing up for the program, so it's safe to assume that your preferred airline will issue an email announcement with details on joining if it gets onboard the PreCheck program. United, US, and Alaska plan to participate in PreCheck by the end of 2012. Another way to join is by visiting the U.S. Customs and Border Protection website and signing up for a Trusted Traveler program. You will have to go through an initial screening process and background check. Once approved, you'll receive a special barcode on your boarding pass that will give you access to separate PreCheck boarding lanes at participating airports. Just how much time will this save you?

The TSA is tight-lipped about the exact details of the PreCheck process. According to the agency's website, "no individual will be guaranteed expedited screening in order to retain a certain element of randomness to prevent terrorists from gaming the system." So no promises. But it's probable you'll face a shorter line, as the bulk of passengers going through security won't belong to the program. Moreover, you may be able to wear your shoes throughout the airport screening process ... and your coat, belt, and jacket, too. With a tinge of ambiguity, the TSA states that some travelers might get to keep all their clothes on, while leaving laptops and plastic baggies inside carry-on bags as well. Do you plan to sign up for PreCheck?

 Source: Smarter Travel http://bit.ly/xQfTUw

IRS and your Travel Miles: Are Taxable Frequent Flyer Miles in Your Future???

You probably never paid a penny in taxes for the frequent flyer miles you've earned. I certainly haven't.

There's only one exception to the no-tax-on-miles rule, as it's been generally understood. If you win frequent flyer miles in a contest or sweepstakes, the sweepstakes host publishes an estimated retail value of the miles in the terms and conditions, and sends a 1099 form to the winner and to the IRS, which considers the prize's value to be tantamount to extra income and taxable as such.

On the other hand, there are no tax consequences for earning frequent flyer miles for day-to-day transactions, such as shopping, traveling, and so on.

But what about the miles that banks award as incentives to open checking and savings accounts? Or the miles that credit card issuers routinely give to consumers as an incentive to apply for new cards?

Until recently the prevailing assumption on the part of both mileage-earners and tax experts was that such sign-up bonuses were not taxable.

This year, however, as reported by the Los Angeles Times, Citibank began sending 1099s to customers who had received mileage bonuses for opening savings or checking accounts. And of course, copies of those 1099s were also sent to the IRS.

Citi's move—which it claims is in response to IRS guidelines—raises a host of questions and concerns.

Among them:

•Citi valued the AAdvantage miles awarded for opening checking and savings accounts at 2.5 cents each. While it's possible to get that much value for the miles when redeeming them, my estimate of the average value of a mile is around 1.2 cents. And certainly Citi paid American much less than 2.5 cents apiece for the miles. In fact, the vagaries of valuation are one of the issues that the IRS has historically cited as an insuperable barrier to taxing miles.

•What's the difference between earning miles for opening a bank account and miles earned for signing up for a credit card? If the former incentive is taxable, why isn't the latter? With the marketplace awash in lucrative credit card sign-up bonuses, this question is hardly academic—hundreds of thousands of consumers would be affected if credit card bonuses were treated like bank account bonuses.

•And if bonuses for financial services transactions are taxable, wouldn't that suggest that miles earned for other transactions were taxable as well?

According to David Lazarus, who wrote the L.A. Times story, the IRS considers the bank account bonuses to be "income miles," while other bonuses are "rebate miles." The logic of that distinction eludes me.

So, what to do? This is what Eva Rosenberg, my tax advisor and publisher of TaxMama.com, advises: "ANYTIME you get a 1099 form of any kind, report it on your tax return wherever the IRS computer expects to see the income. In this case, on Line 21, Other Income. Then, if the income is not taxable, deduct it back out, and include a statement explaining why it's not taxable." [emphasis added]

I'm sure that's solid advice. But I'm equally sure that any policy that causes so much confusion, and that requires taxpayers to report, back out, and then explain themselves, is a policy that needs to be rescinded.

Apparently Senator Sherrod Brown (D-Ohio), chairman of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection, agrees. He appealed directly to Citi chief Vikram Pandit to "end this gratuitous practice. The Internal Revenue Service (IRS) clearly stated that frequent-flier miles are not subject to income tax."

Since there's obviously disagreement as to the interpretation of the IRS' rules, frequent flyers can only hope that he and like-minded politicians will take the no-tax case to the IRS as well.

Reader Reality Check

Did you earn miles for opening a new savings or checking account in 2011? Did the bank send you a 1099 for the miles?

This article originally appeared on FrequentFlier.com.