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IT'S ALL RIGHT.

[00:00:02]

WE ARE READY TO GET STARTED.

[1. CALL TO ORDER NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that, at this regular meeting, the City Council may vote to go into executive session, which will not be open to the public, for discussion and consultation with the City’s attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).]

TODAY IS TUESDAY, MAY 21ST, 2024.

IT IS OUR REGULAR MEETING.

I AM CALLING IT TO ORDER AND GIVING NOTICE TO MEMBERS OF THE CITY COUNCIL AND TO THE GENERAL PUBLIC THAT AT THIS REGULAR MEETING, THE CITY COUNCIL MAY VOTE TO GO INTO EXECUTIVE SESSION, WHICH WILL NOT BE OPEN TO THE PUBLIC FOR DISCUSSION AND CONSULTATION WITH THE CITY'S ATTORNEYS.

FOR LEGAL ADVICE ON ANY ITEM LISTED ON THE FOLLOWING AGENDA.

CAN WE HAVE ROLL CALL? MAYOR DAGGETT HERE.

VICE MAYOR ASLAN RIGHT HERE.

COUNCIL MEMBER HARRIS HERE.

COUNCIL MEMBER HOUSE.

PRESENT. BLESS YOU.

COUNCIL MEMBER. MATTHEWS.

COUNCIL MEMBER MCCARTHY.

HERE. COUNCIL MEMBER SWEET HERE.

COUNCIL MEMBER MCCARTHY.

WOULD YOU LEAD US IN THE PLEDGE OF ALLEGIANCE? I WOULD PLEASE STAND IF YOU CAN.

THE MISSION OF THE CITY OF FLAGSTAFF IS TO PROTECT AND ENHANCE THE QUALITY OF LIFE FOR ALL.

THANK YOU. MAYOR.

THE FLAGSTAFF CITY COUNCIL HUMBLY ACKNOWLEDGES THE ANCESTRAL HOMELANDS OF THIS AREA'S INDIGENOUS NATIONS AND ORIGINAL STEWARDS.

THESE LANDS, STILL INHABITED BY NATIVE DESCENDANTS, BORDER MOUNTAINS SACRED TO INDIGENOUS PEOPLES.

WE HONOR THEM, THEIR LEGACIES, THEIR TRADITIONS, AND THEIR CONTINUED CONTRIBUTIONS.

WE CELEBRATE THEIR PAST, PRESENT AND FUTURE GENERATIONS WHO WILL FOREVER KNOW THIS PLACE AS HOME.

THANK YOU.

MOVING DOWN TO OPEN CALL TO THE PUBLIC.

[4. OPEN CALL TO THE PUBLIC Open Call to the Public enables the public to address the Council about an item that is not on the prepared agenda. Comments relating to items that are on the agenda will be taken at the time that the item is discussed. Open Call to the Public appears on the agenda twice, at the beginning and at the end. The total time allotted for the first Open Call to the Public is 30 minutes; any additional comments will be held until the second Open Call to the Public. If you wish to address the Council in person at today's meeting, please complete a comment card and submit it to the recording clerk as soon as possible. Your name will be called when it is your turn to speak. You may address the Council up to three times throughout the meeting, including comments made during Open Call to the Public and Public Comment. Please limit your remarks to three minutes per item to allow everyone an opportunity to speak. At the discretion of the Chair, ten or more persons present at the meeting and wishing to speak may appoint a representative who may have no more than fifteen minutes to speak.]

OPEN CALL TO THE PUBLIC ENABLES THE PUBLIC TO ADDRESS THE COUNCIL ABOUT AN ITEM THAT IS NOT ON THE PREPARED AGENDA.

COMMENTS RELATED TO ITEMS THAT ARE ON THE AGENDA WILL BE TAKEN AT THE TIME THE ITEM IS DISCUSSED.

OPEN CALL TO THE PUBLIC APPEARS ON THE AGENDA TWICE AT THE BEGINNING AND AT THE END.

THE TOTAL TIME ALLOTTED FOR THE FIRST OPEN CALL TO THE PUBLIC IS 30 MINUTES.

ADDITIONAL COMMENTS WILL BE HELD UNTIL THE SECOND CALL TO THE PUBLIC.

IF YOU WISH TO ADDRESS THE COUNCIL IN PERSON AT TODAY'S MEETING, PLEASE COMPLETE A COMMENT CARD THAT IS IN THE BACK OF THE ROOM AND SUBMIT IT TO THE RECORDING CLERK AS SOON AS POSSIBLE.

YOU HAVE THREE MINUTES AND THERE IS A CLOCK HERE.

DURING OPEN CALL TO THE PUBLIC.

THE COUNCIL IS NOT ALLOWED TO ASK OR ANSWER QUESTIONS OR HAVE ANY ANY TYPE OF COMMENT ON YOUR COMMENTS.

SO FIRST NADINE HART.

OH, FROM A LITTLE BIT OF CONTROVERSY, AND I'M HOPING AS WE MOVE FORWARD, WE'LL CONSIDER STANDING OUR GROUND ON REGULATING AND REZONING WITH OUR HOUSING. RECENTLY I HAD A STUDENT.

I MISSED THE FIRST PERIOD BECAUSE I STEPPED OUT TO TAKE CARE OF ONE OF MY KIDS, AND I SAW HER AND SHE STARTED BAWLING.

AND SHE'S LIKE, WHERE WERE YOU? I NEEDED YOU.

AND I'M LIKE, OKAY, I'LL SIT DOWN WITH YOU.

SHE HAD A HUGE THING OF CHANGE AND ROLLERS AND I'M LIKE, WHAT ARE YOU DOING? SHE'S LIKE, I'M TRYING TO PAY FOR MY FEES BECAUSE I'LL BE THE FIRST ONE TO GRADUATE IN MY FAMILY.

HER FAVORITE BROTHER GOT DEPORTED.

HE WAS SUPPOSED TO GO TO HER GRADUATION, SO THAT WAS HARD FOR HER.

SHE WORKS AND HER MONEY GOES TO SUPPORT HER FAMILY BECAUSE LIKE EVERYBODY ELSE, RENTS ARE GOING UP, EVEN IN THE APARTMENTS.

YOU GUYS WANT TO BUILD APARTMENTS.

WHAT HAPPENS WHEN THEY LOOK TO THE PERSON NEXT DOOR AND SAY, HEY, AT LEAST I'M NOT RAISING IT ANOTHER 5 OR $600 A MONTH.

I'M ONLY GOING TO DO 400.

AND WHAT'S GOING TO HAPPEN WHEN WATER GOES UP? THAT'S GOING TO BE DIRECTLY IMPACTED ON THE RESIDENTS IN APARTMENTS AND RESIDENTS AROUND.

IT'S GOING TO IMPACT MY FAMILY BECAUSE I HAVE TO PAY FOR THAT OUT OF POCKET.

DO YOU REALLY THINK THE TOWNHOME MANAGERS AND THE PROPERTY MANAGERS WHO PAY FOR WATER ARE GOING TO GIVE A FAIR INCREASE OR SUCK IT UP? THEY'RE NOT, AND WE'RE ALREADY HURTING.

IT'S HARD ENOUGH AS A HOUSING CHOICE VOUCHER HOLDER TO FIND REASONABLE ACCOMMODATIONS.

THE OTHER DAY ON FACEBOOK, I SAW A ROOM FOR RENT FOR $1,500 A MONTH, $1,500 A MONTH.

SO AT THAT RATE, A THREE BEDROOM WOULD GO FOR $4,500 A MONTH.

[00:05:04]

THAT TAKES AN EXTREME AMOUNT OF CREDIT.

AND EVEN WITH THE MINIMUM WAGE INCREASE, WHO CAN AFFORD THAT? ON TOP OF OUT OF POCKET WATER AND ELECTRIC AND ALL THE MEANS, INCLUDING A POSSIBILITY OF THE TRANSIT PRICES GOING UP.

AND I'VE NOTICED A SHIFT WHERE RESIDENTIAL IS A LOT CHEAPER.

YOU GUYS HAVE INCUBATORS FOR BUSINESS OWNERS.

THOSE ARE $600 A MONTH.

THERE ARE DIFFERENT PROPERTIES IN TOWN THAT ARE CHEAPER AS A RESIDENT TO TO TO START YOUR OWN BUSINESS.

SO I'M JUST HOPING THAT YOU GUYS WILL BE ABLE TO REACH SOME KIND OF CONSENSUS AND START TO TAKE AN AGGRESSIVE FIGHT AND STANCE ON THIS, AND EVERY DECISION YOU MAKE HURTS US ALL.

IF THOSE WATER RATES INCREASE, EVERYTHING IS GOING TO INCREASE.

SO THANK YOU SO MUCH.

AND I HOPE YOU GUYS HAVE A GREAT DAY.

DENNIS GIVENS.

THANK YOU. MAYOR DAGGETT, VICE MAYOR, CITY COUNCIL STAFF.

GOOD CITIZENS OF FLAGSTAFF.

HI. MY NAME IS DENNIS GIVENS OF THE SOUTH SIDE, AND I'M CO-FOUNDER OF JUSTICE NEWS.

IT'S NOT JUST NEWS, IT'S JUSTICE NEWS.

I'M HERE TO TALK ABOUT THE NOW REPRESENTATIVE AT THE WATER RATES MEETING, WHO SAID THE UNIVERSITY HAS BEEN HELPING SOLVE IT, HAS BEEN HELPING SOLVE THE HOUSING CRISIS IN FLAGSTAFF, BEEN ALL BUT IN ALL REALITY, THEY ARE CONTRIBUTING FACTOR OF THE HOUSING CRISIS.

WITH THEIR RECORD GROWTH OVER THE LAST DECADE UNDER RITA CHANG, THE CITY HAS BEEN HAS SEEN DEVELOPMENT OF MULTIPLE STUDENT HOUSING OUTSIDE OF THE UNIVERSITY.

NOT ONLY ARE THEY THE TALLEST BUILDINGS IN THE CITY, BUT HAS CAUSED THE RENT TO INCREASE FOR THE WORKING PEOPLE IN THE LOCALS.

DON'T GET ME WRONG, I WOULD NOT BE UP HERE TODAY IF IT WAS NOT FOR NORTHERN ARIZONA UNIVERSITY.

AND THE KNOWLEDGE I RECEIVED THERE, BUT TO BE BLIND TO THE HOUSING CRISIS WOULD BE NOT FAIR TO THE CITIZENS.

FOR EXAMPLE, THE JACK OR THE HUB BUILT IN THE SOUTH SIDE NEIGHBORHOOD MORE THAN FIVE YEARS AGO.

THERE IS NO LONGER PARKING FOR THE RESIDENTS.

BECAUSE OF THE STUDENTS.

THE RENT HAS INCREASED TO MATCH THE RENT CHARGED BY THIS NON AFFORDABLE STUDENT HOUSING.

AND THE NOISE UNTIL 2 A.M.

HAS BEEN BRUTAL FOR THE COMMUNITY WHO HAS BEEN LIVING THERE FOR PLUS 20 YEARS NOW.

YOU SHOULD CURB ITS GROWTH AND LET THE CITY CATCH UP TO THE INCREASED POPULATION.

THERE IS A HOUSING, TRAFFIC AND ENVIRONMENTAL CRISIS GOING ON WITHIN THE CITY AND WE NEED TO TAKE CARE OF IT BEFORE ANY KEEPS EXPANDING.

MAYBE MAKE IT HARDER TO GET INTO NYU AND NOT JUST MAKE IT ANOTHER PARTY SCHOOL.

ALSO, HOW IS THE CITY TRYING TO REDUCE CARBON EMISSIONS BY 2030 AND ADD MORE FLIGHTS GOING IN AND OUT OF FLAGSTAFF PLANES ARE NOT ELECTRIC.

JUST A THOUGHT.

LAST, THE CITY SHOULD BUILD A RANCH SLASH FARM OUTSIDE THE CITY WHERE WE CAN BUST THE UNSHELTERED POPULATION.

A PLACE WHERE THEY CAN CAMP OUT, LEARN TRADES, RECEIVE ASSISTANCE AND GET BACK ON THEIR FEET.

THANK YOU FOR YOUR TIME AND MAY THE HD ALIENS BLESS US.

ALSO SUPPORT SMALL BUSINESSES AND GET OUT AND GET INVOLVED IN LOCAL POLITICS.

WE ALL NEED YOU.

KEEP THIS DEMOCRACY DEMOCRACY STRONG AND YEAH, LETS GO US GO NOW.

THANK YOU. DENNIS.

I'VE GOT A QUESTION OUT TO THE CITY ATTORNEY ABOUT EXTENDED TIME DURING OPEN CALL.

YOUR HONOR, THE RULES DON'T PROVIDE FOR SUCH.

IT'S THREE MINUTES UNDER THE RULES DURING OPEN CALL.

CORRECT. OKAY.

UNLESS THERE'S AN ACCOMMODATION TO BE MADE FOR A, YOU KNOW, INTERPRETATION, INTERPRETATION SERVICES OR ADA NEEDS.

OKAY. THANK YOU.

ABEL. ESTRELLA.

THANK YOU FOR ALLOWING ME TO ADDRESS YOU TODAY.

I'M ADDRESSING THE HOMELESS, THE PROPOSED HOMELESS SHELTER IN SUNNYSIDE, AND I HAVE A DOCUMENT TO READ TO YOU.

I WON'T GET FUMBLED UP BY BECAUSE I'M GOING TO READ THE DOCUMENT, AND IT'S A LOT EASIER.

THE SUNNYSIDE NEIGHBORHOOD ASSOCIATION FLAGSTAFF, INC.

SNA IS ADAMANTLY OPPOSED TO THE PROJECT.

MRS. WENDY WHITE PRESENTED FLAGSTAFF CITY COUNCIL ON APRIL 9TH, 2024.

WE'VE HEARD FROM MANY SUNNYSIDE RESIDENTS WHO ARE OPPOSED.

WE HAVE BEEN OPPOSED TO THIS FOR THE LAST 20 TO SOCIAL SERVICE AGENCY PROPOSALS TO BUILD IN SUNNYSIDE FOR ABOUT THE LAST 25 YEARS.

MRS. WHITE'S COMMENT TUESDAY ON THE NIGHT OF APRIL 9TH SAID THAT SHE DOES NOT NEED A GOOD NEIGHBORHOOD POLICY TO SPEAK TO THE RESIDENTS AND BUSINESSES IN SUNNYSIDE ABOUT.

HER PROPOSAL CONTINUES AS AND THIS CONTINUES A LONG HISTORY OF RETAINING BLATANT RACISM, DISRESPECT AND DISREGARD THAT SUNNYSIDE HAS ENDURED SINCE INCORPORATION INTO THE CITY IN THE 1950S.

[00:10:04]

SNA FULLY SUPPORTS THE PROPOSED SENATE BILL 1593, WHICH WOULD REQUIRE REMOVAL OF A HOMELESS ENCAMPMENT IN A CITY OR COUNTY IF OTHER INDOOR OPTIONS ARE EXIST.

SNA. ASK THAT THE CITY FULLY ENFORCE ALL ZONING, PROPERTY MAINTENANCE, NUISANCE, AND OTHER LAWS, POLICIES, AND ORDINANCES IN CITY, COUNTY, STATE AND FEDERAL APPLICABLE TO ADDRESS THE PROPOSED HOMELESS ENCAMPMENT ESTABLISHMENT IN OUR SUNNYSIDE NEIGHBORHOOD.

ADDITIONALLY, WE ASK THAT FLAGSTAFF CITY COUNCIL FOLLOW THE CITY OF TUCSON'S LEAD AND IMPLEMENT A HOMELESS ENCAMPMENT PROTOCOL AND REPORTING TOOL THAT ENSURED THAT ALL NEIGHBORHOODS WITHIN THE CITY HAVE EQUAL PROTECTION.

AGAIN. SNA ADAMANTLY OPPOSES THE PROJECT THAT MRS. WENDY WHITE PRESENTED TO THE FLAGSTAFF CITY COUNCIL IN APRIL.

THANK YOU. THANK YOU.

ALL RIGHT, MOVING DOWN TO PROCLAMATIONS WE HAVE FOR TODAY, NATIONAL TRAVEL AND TOURISM WEEK.

JEWISH AMERICAN HERITAGE MONTH, PUBLIC WORKS WEEK AND ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE MONTH.

HELLO. HELLO.

[A. Proclamation: National Travel and Tourism Week]

AND I ASSUME NATIONAL TRAVEL AND TOURISM WEEK IS FIRST.

SO I STOOD ONE MOMENT.

OKAY, I AM DOUBLE CLICKING THIS.

ALL RIGHT. JUST A SLIDE TO SPEAK TO.

MAYOR. VICE MAYOR, COUNCIL.

TRACY WARD, EXECUTIVE DIRECTOR FOR DISCOVER FLAGSTAFF.

THE DMO FOR THE CITY OF FLAGSTAFF.

APPRECIATE YOUR CONSIDERATION TODAY FOR THE 2024 NATIONAL TRAVEL AND TOURISM WEEK PROCLAMATION.

KEEPING OUR COMMUNITY VALUES FRONT AND CENTER.

DISCOVER FLAGSTAFF ALWAYS DOES OUR OWN TWIST ON THE INDUSTRIES DESIGNATED WEEK.

WE CELEBRATE NATIONAL TRAVEL AND ECO TOURISM WEEK.

AS YOU KNOW, WE ORGANIZE TOURISM SERVICE DAYS.

THE LAST ONE WAS ON MAY 1ST WHERE WE DID A TRASH PICKUP OF HISTORIC DOWNTOWN.

AND OUR SECOND ONE WILL BE ON MAY 22ND, WHICH IS TOMORROW.

SO AND WE'RE GOING TO FOCUS ON ROUTE 66 FOR THAT ONE ON MAY 1ST IN DOWNTOWN WE COLLECTED 88 POUNDS OF TRASH, 11 POUNDS OF RECYCLING.

WE HAD APPROXIMATELY 40 VOLUNTEERS AND WE ACTUALLY HAD ONE COUNCIL MEMBER JOIN US.

COUNCIL MEMBER MATTHEWS GRACIOUSLY JOINED US THAT DAY.

SO WE WELCOME ALL OF YOU TO JOIN US TOMORROW, SHOULD YOU HAVE THE TIME.

AND WITH THAT, I THANK YOU AND LOOK FORWARD TO THE PROCLAMATION.

THANK YOU.

COUNCIL. LET'S HEAD DOWN HERE.

WE HAVE SOME FINE WORDS PREPARED FOR YOU ALL HERE.

WITHOUT FURTHER ADO.

WHEREAS NATIONAL TRAVEL AND TOURISM WEEK IS AN ANNUAL TRADITION PRESENTED BY THE US TRAVEL ASSOCIATION.

THIS YEAR MARKS THE 41ST ANNIVERSARY OF CELEBRATING THE INDUSTRY'S CRITICAL ROLE IN POWERING ECONOMIES, COMMUNITIES AND CONNECTIONS MOVING TRAVEL FORWARD.

EVERY CITIZEN BENEFITS FROM TRAVEL AND TOURISM, AND THE TRAVEL INDUSTRY SUPPORTS NEARLY 15 MILLION AMERICAN JOBS AND IS A CRITICAL COMPONENT TO THE ECONOMIC VITALITY OF COMMUNITIES IN EVERY STATE.

AND WHEREAS FLAGSTAFF TOURISM SUPPORTS APPROXIMATELY 8000 JOBS, GENERATING MILLIONS OF DOLLARS TO THE LOCAL ECONOMY, AND WHEREAS, ACCORDING TO DEAN RUNYAN ASSOCIATES, TOURISM PROVIDES ECONOMIC STABILITY TO THE COMMUNITY WITH AN ANNUAL REAL ESTATE TAX SAVINGS, REAL TAX SAVINGS OF APPROXIMATELY 1000 $1,331 PER HOUSEHOLD. AND WHEREAS THE TRAVEL INDUSTRY HAS A PROFOUND ECONOMIC IMPACT TO THE UNITED STATES, THE US TRAVEL INDUSTRY GENERATED $2.8 TRILLION IN ECONOMIC IMPACT. AND WHEREAS DISCOVER FLAGSTAFF HAS A NUANCED.

DISCOVER FLAGSTAFF HAS NUANCED THE WEEK AS TRAVEL, NATIONAL TRAVEL AND ECO TOURISM WEEK TO REFLECT OUR COMMUNITY VALUES.

NOW THEREFORE, I ON BEHALF OF OUR MAYOR BECKY DAGGETT, MAYOR OF THE CITY OF FLAGSTAFF, ARIZONA, WE RECOGNIZE MAY 29TH, MAY 19TH THROUGH 25TH AS NATIONAL TRAVEL AND ECO TOURISM WEEK.

[00:15:03]

COME ON DOWN. GET YOUR GET YOUR PROCLAMATION.

TRACY, I'M SURE YOU HAVE A FEW WORDS YOU'D LIKE TO SAY.

I KNOW YOU HAVE TO TALK AGAIN.

OH, REALLY? YOU ALL DON'T WANT YOUR PICTURE TAKEN.

GUYS DO THE HANDOFF.

THANK YOU. YOU DON'T EVEN KNOW.

OKAY. NEXT UP, PUBLIC WORKS.

[C. Proclamation: Public Works Week]

CAN I HAVE ALL OF YOU COME DOWN HERE? AND JUST FIT AS.

GOOD AS YOU CAN.

I THINK WE MIGHT HAVE TO MAKE ANOTHER ROW IN FRONT OF COUNCIL.

MURRAY. LET'S JUST MAKE A COUPLE COMMENTS.

OH HECK YEAH. I'LL HAVE HIM MAKE A COUPLE COMMENTS SINCE HE'S JOINING US.

YEAH. HECK YEAH. THESE ARE OUR ASSOCIATION REPRESENTATIVES.

YEAH. THANK YOU. YOU BETCHA.

COME ON. I NEED TO BE AT LEAST TEN.

IS THIS IT? THAT'S ALL YOU GOT? THE REST OF US ARE WORKING.

PUBLIC WORKS PROFESSIONALS FOCUS ON INFRASTRUCTURE, FACILITIES AND SERVICES THAT ARE OF VITAL IMPORTANCE TO SUSTAINABLE AND RESILIENT COMMUNITIES AND TO THE PUBLIC HEALTH, HIGH QUALITY OF LIFE AND WELL-BEING OF THE PEOPLE OF THE CITY OF FLAGSTAFF.

THESE INFRASTRUCTURE, FACILITIES AND SERVICES COULD NOT BE PROVIDED WITHOUT THE DEDICATED EFFORTS OF PUBLIC WORKS PROFESSIONALS WHO ARE HARD WORKING LEADERS AND COMMUNITY STEWARDS AT ALL LEVELS OF GOVERNMENT.

THESE DEDICATED MEMBERS ARE RESPONSIBLE FOR REBUILDING, IMPROVING AND PROTECTING OUR NATION'S TRANSPORTATION, SOLID WASTE SYSTEMS, PUBLIC BUILDINGS, OPERATIONS, FLEET AND EQUIPMENT, AND OTHER STRUCTURES AND FACILITIES ESSENTIAL FOR OUR CITIZENS.

IT IS IN THE PUBLIC INTEREST FOR THE CITIZENS, CIVIC LEADERS AND VISITORS IN THE CITY OF FLAGSTAFF TO GAIN KNOWLEDGE OF AND TO MAINTAIN AN ONGOING INTEREST AND UNDERSTANDING OF THE IMPORTANCE OF PUBLIC WORKS AND PUBLIC WORKS PROGRAMS IN THE CITY OF FLAGSTAFF.

THE YEAR 2024 MARKS THE 64TH ANNUAL NATIONAL PUBLIC WORKS WEEK, SPONSORED BY THE AMERICAN PUBLIC WORKS ASSOCIATION. A SINCERE THANK YOU IS EXTENDED TO ALL OF THE CITY PUBLIC WORKS PROFESSIONALS THAT DELIVER CORE SERVICES FOR THE 700 LANE MILES OF ROADWAYS, 800 PIECES OF FLEET EQUIPMENT, 1,000,000FT² OF CITY FACILITIES, 20,000 SOLID WASTE CUSTOMERS AND THE MANAGEMENT OF THE REGIONAL LANDFILL EACH AND EVERY DAY IN OUR COMMUNITY.

THANKS TO YOU, THE CITY IS IN GOOD HANDS.

WE APPRECIATE THE PRIDE YOU TAKE AND IN NEVER ENDING WORK PROGRAM.

NOW THEREFORE, I, MAYOR BECKY DAGGETT, MAYOR OF THE CITY OF FLAGSTAFF, DO HEREBY PROCLAIM THE WEEK OF MAY 19TH THROUGH 25TH, 2024 AS PUBLIC WORKS WEEK.

OH, OKAY.

HERE, YOU CAN HOLD THIS AND WE'LL TAKE A PHOTO.

SCOTT, PLEASE. THANK YOU.

I'D LIKE TO THANK THE MAYOR AND THE COUNCIL FOR THIS KIND RECOGNITION.

AND FOR OUR PUBLIC WORKS WEEK.

IT'S A BIG CELEBRATION FOR US.

I WANT TO POINT OUT TWO THINGS ONE, THANK YOU.

THANK YOU ALL. SINCERELY.

OF OUR 114 MEMBERS, THIS IS A GOOD SAMPLING OF THE TEAM THAT WE HAVE ASSEMBLED THAT TAKE CARE OF EVERYTHING WE DON'T SEE EVERY DAY.

SO CONGRATULATIONS FOR BEING HERE.

WE APPRECIATE YOUR SERVICE.

COLE HAS BEEN WITH US NOW FOR SEVEN DAYS.

YOU'RE OUR NEWEST MEMBER, AND I BELIEVE MIKE IS PROBABLY OUR LONGEST TENURED MEMBER AT 30, 31, 31 YEARS HERE TONIGHT.

[00:20:07]

SO GOOD WORK. SO AGAIN WE THANK YOU FOR THAT RECOGNITION.

AND THEN ALSO NICK HALL IS JOINING ME TONIGHT.

HE'S WITH BURGESS AND NEPAL.

BUT HE ALSO REPRESENTS OUR TRADE ASSOCIATION AMERICAN PUBLIC WORKS ASSOCIATION.

AND WE ASKED HIM TO MAKE A COUPLE COMMENTS.

AND HE WAS KIND ENOUGH TO DO IT BECAUSE WE ARE MOVING OUR ORGANIZATION AND OUR DIVISION INTO KIND OF A MORE FORMALIZED AGREEMENT AND AN OPERATION WITHIN THE CITY, BECAUSE WE ARE A CITY AND WE'RE OWNING EVERY PROGRAM AND EVERY THING WE DO.

AND WE THINK THAT THIS EFFORT, WORKING THROUGH AMERICAN PUBLIC WORKS ASSOCIATION, HAS GIVEN US MUCH MORE CREDIBILITY, MUCH MORE PROFESSIONAL OPPORTUNITY TO SPEAK TO THE COMMUNITY AND THE SERVICES WE PROVIDE.

AND NICK'S GOING TO PROVIDE US A COUPLE COMMENTS.

SO WE THANK YOU FOR BEING HERE.

BUT AGAIN, IT'S ABOUT CELEBRATING THE PROFESSIONALS THAT WORK IN YOUR COMMUNITY EVERY DAY.

AND THAT'S WHY WE'RE HERE TONIGHT.

THANK YOU SCOTT.

GOOD AFTERNOON, MADAM MAYOR AND MEMBERS OF COUNCIL WHO ARE NOW BEHIND ME.

SORRY. MY NAME IS NICK HALL, AND I AM CURRENTLY ONE OF THE STATE DIRECTORS FOR THE ARIZONA CHAPTER OF APWA AND ALSO SERVE AS THE NORTHERN ARIZONA BRANCH PRESIDENT. I AM JOINED HERE TODAY BY OUR NORTHERN BRANCH SECRETARY, JENNIFER BROWN, AND OUR TREASURER, BAILEY QATANA, BOTH OF FLAGSTAFF PUBLIC WORKS. APWA IS AN ORGANIZATION THAT BRINGS TOGETHER CITIES, TOWNS, COUNTIES, STATES, AND PRIVATE INDUSTRY FOR THE PURPOSE OF SHARING KNOWLEDGE AND CONNECTIONS.

APWA OFFERS EDUCATION PROGRAMS SUCH AS THE PUBLIC WORKS INSTITUTE AND OUR ANNUAL STATE AND NATIONAL CONFERENCES.

THROUGH THIS ORGANIZATION, AN AGENCY CAN CHOOSE TO BECOME AN APWA ACCREDITED AGENCY.

I COMMEND THE CITY STAFF ON PURSUING ACCREDITATION.

IT IS AN INTENSE PROCESS OF SELF-EVALUATION AND ALIGNING OF POLICIES AND PROCEDURES TO FOLLOW NATIONALLY ACCEPTED PRACTICES, ALL WHILE MAINTAINING THE IDENTITY OF THE ORGANIZATION.

THIS IS NO SMALL FEAT AND TAKES TRUE DEDICATION TO THE COMMUNITY.

THIS PROCESS BRINGS NATIONAL EXPERIENCE INTO THE SPECIFIC OPERATIONS NEEDED FOR OUR CITY.

TO PUT IN PERSPECTIVE, ONLY SIX OTHER AGENCIES IN THE STATE HAVE BECOME ACCREDITED SO FAR, WITH JUST OVER 200 NATIONALLY.

THIS WEEK. WE ARE HERE TO CELEBRATE THOSE IN PUBLIC WORKS AND TO EDUCATE THE PUBLIC ON WHAT PUBLIC WORKS MEANS TO ALL OF US.

THIS YEAR'S PUBLIC WORKS WEEK, PUBLIC'S SORRY PUBLIC WORKS WEEK THEME IS ADVANCING THE QUALITY OF LIFE FOR ALL, WHICH IS A SIMILAR STATEMENT THAT I HEARD EARLIER. PUBLIC WORKS, INFRASTRUCTURE AND OPERATIONS ARE OFTEN TAKEN FOR GRANTED.

PUBLIC. PUBLIC INFRASTRUCTURE IS FINE UNTIL THERE IS A PROBLEM.

THE AMOUNT OF LABOR AND CARE THAT KEEPS INFRASTRUCTURE THRIVING IS NOT OFTEN RECOGNIZED.

THESE PEOPLE BEFORE YOU TODAY, AND THOSE WHO CANNOT MAKE IT HERE TODAY, ARE THOSE THAT ENABLE OUR CITIZENS AND GUESTS TO SAFELY TRAVEL DAY TO DAY, TO COME INTO A GOVERNMENT BUILDING AND KNOW IT IS SAFE, CLEAN AND FUNCTIONAL, AND TO ENJOY GENERAL HEALTH AND CLEANLINESS, WHETHER BY SHOVEL OR WRENCH IN HAND AN EQUIPMENT, JOYSTICK, STEERING WHEEL, KEYBOARD OR PEN.

THESE PEOPLE PROVIDE US THE QUALITY OF LIFE WE GET TO ENJOY HERE IN FLAGSTAFF.

I CANNOT OFFER ENOUGH PRAISE TO THEM FOR THE JOBS THAT THEY DO.

BUT WITH ABSOLUTE SINCERENESS.

THANK YOU. I ALSO WANT TO THANK YOU, MAYOR AND COUNCIL, FOR YOUR CONTINUED SUPPORT OF YOUR STAFF AS THEY NAVIGATE WHATEVER CHALLENGES THEY MAY FACE AHEAD OF THEM. THANK YOU.

THANK YOU. GOOD WORK.

THANK YOU. GOOD WORK EVERYBODY.

LOOKING SHARP. THANKS.

THANK YOU SO MUCH.

ERIC GETS A SOUVENIR.

GIVE IT TO YOUR RIGHT THERE BEHIND YOU.

PUT THAT ON HERE. WE'LL GET YOU ON YOUR OWN, BUDDY.

YES, YES, WELL. THANK YOU. WE APPRECIATE YOU VERY MUCH.

GOT HERE. YOU'RE WELCOME.

LOOK. I BELIEVE YOUR NEXT.

AND SEAN.

JEWISH AMERICAN.

WE DON'T HAVE ANYONE HERE.

CORRECT. OKAY. WHEREAS THIS MONTH WE CELEBRATE THE

[B. Proclamation: Jewish American Heritage Month]

ENDURING HERITAGE OF JEWISH AMERICANS WHOSE VALUES, CULTURE AND CONTRIBUTIONS HAVE SHAPED OUR CHARACTER AS A NATION FOR GENERATIONS, THE STORY OF THE JEWISH PEOPLE ONE OF RESILIENCE, FAITH AND HOPE IN THE FACE OF ADVERSITY, PREJUDICE AND PERSECUTION HAS BEEN WOVEN INTO THE FABRIC OF OUR NATION'S STORY.

IT HAS DRIVEN US FORWARD IN OUR ONGOING MARCH FOR JUSTICE, EQUALITY AND FREEDOM AS WE RECOMMIT TO UPHOLDING THE

[00:25:06]

PRINCIPLES OF OUR NATION'S FOUNDING AND REALIZING THE PROMISE OF AMERICA FOR ALL AMERICANS.

WHEREAS FOR CENTURIES, JEWISH REFUGEES FLEEING OPPRESSION AND DISCRIMINATION ABROAD HAVE SAILED TO OUR SHORES IN SEARCH OF SANCTUARY.

EARLY ON, THEY FOUGHT FOR RELIGIOUS FREEDOM, HELPING DEFINE ONE OF THE BEDROCK PRINCIPLES UPON WHICH AMERICA WAS BUILT.

UNION SOLDIERS CELEBRATED PASSOVER IN THE MIDST OF THE CIVIL WAR.

JEWISH SUFFRAGETTES FOUGHT TO EXPAND FREEDOM AND JUSTICE, AND JEWISH FAITH LEADERS LINKED ARMS WITH GIANTS OF THE CIVIL RIGHTS MOVEMENT TO DEMAND EQUAL RIGHTS FOR ALL.

WHEREAS THIS JEWISH AMERICAN HERITAGE MONTH LET US JOIN HANDS ACROSS FAITH RACES AND BACKGROUNDS TO MAKE CLEAR THAT EVIL, HATE AND ANTI-SEMITISM WILL NOT PREVAIL.

LET US HONOR THE TIMELESS VALUES, CONTRIBUTIONS, AND CULTURE OF JEWISH AMERICANS WHO CARRY OUR NATION FORWARD EACH AND EVERY DAY, AND LET US REDEDICATE OURSELVES TO THE SACRED WORK OF CREATING A MORE INCLUSIVE TOMORROW, PROTECTING THE DIVERSITY THAT DEFINES WHO WE ARE AS A NATION, AND PRESERVING THE DIGNITY OF EVERY HUMAN BEING HERE AT HOME AND AROUND THE WORLD.

NOW, THEREFORE, I, DEB HARRIS, ON BEHALF OF BECKY DAGGETT, MAYOR OF FLAGSTAFF, RECOGNIZE THE MONTH OF MAY 2024 AS JEWISH AMERICAN HERITAGE MONTH.

I THINK SO.

SO I'M READING THE PROCLAMATION ON BEHALF OF ASIAN AMERICAN, NATIVE HAWAIIAN AND PACIFIC ISLANDER MONTH, AND I BELIEVE WE HAVE MARK COX ONLINE

[D. Proclamation: Asian American and Pacific Islander Heritage Month]

WHO PROVIDED US WITH THIS DRAFT PROCLAMATION.

WHEREAS THE CITY OF FLAGSTAFF RECOGNIZES THE IMPORTANCE OF CELEBRATING THE CULTURAL DIVERSITY AND CONTRIBUTIONS OF THE ASIAN AMERICAN, NATIVE HAWAIIAN, AND PACIFIC ISLANDER COMMUNITY.

AND WHEREAS, AA AND NHPI HERITAGE MONTH PROVIDES AN OPPORTUNITY FOR OUR COMMUNITY TO HONOR THE RICH HERITAGE, TRADITIONS, AND HISTORY OF ASIAN AMERICANS, NATIVE HAWAIIANS, AND PACIFIC ISLANDERS WHO HAVE GREATLY ENRICHED THE FABRIC OF OUR SOCIETY.

AND WHEREAS, THE AA AND NHPI COMMUNITY IN FLAGSTAFF REPRESENTS A TAPESTRY OF CULTURES, LANGUAGES, AND TRADITIONS THAT CONTRIBUTE TO THE VIBRANT MOSAIC OF OUR CITY.

AND WHEREAS WE ACKNOWLEDGE THE SIGNIFICANT CONTRIBUTIONS OF THE AA AND NHPI COMMUNITY TO THE FIELDS OF SCIENCE, TECHNOLOGY, THE ARTS, EDUCATION, BUSINESS AND BEYOND, ENRICHING OUR CITY AND NATION WITH THEIR TALENTS, INNOVATIONS AND LEADERSHIP.

AND WHEREAS AA AND NHPI HERITAGE MONTH SERVES AS A REMINDER OF THE STRUGGLES AND CHALLENGES FACED BY MEMBERS OF THE AA AND NHPI COMMUNITY THROUGHOUT HISTORY, INCLUDING DISCRIMINATION, EXCLUSION AND INJUSTICE, AND REAFFIRMS OUR COMMITMENT TO PROMOTING EQUITY, DIVERSITY AND INCLUSION FOR ALL RESIDENTS OF FLAGSTAFF.

AND WHEREAS, BY CELEBRATING AA AND NHPI HERITAGE MONTH, WE HONOR THE RESILIENCE, PERSEVERANCE AND ACHIEVEMENTS OF THE AA AND NHPI COMMUNITY AND COMMIT TO BUILDING A MORE INCLUSIVE AND EQUITABLE SOCIETY FOR FUTURE GENERATIONS.

NOW, THEREFORE, I, ON BEHALF OF BECKY DAGGETT, MAYOR OF THE CITY OF FLAGSTAFF, DO HEREBY PROCLAIM THE MONTH OF MAY AS AA AND NHPI HERITAGE MONTH, AND CALL UPON ALL RESIDENTS TO JOIN IN RECOGNIZING AND CELEBRATING THE DIVERSE CULTURES AND CONTRIBUTIONS OF ASIAN AMERICANS, NATIVE HAWAIIANS AND PACIFIC ISLANDERS TO OUR COMMUNITY AND REAFFIRM OUR COMMITMENT TO DIVERSITY, EQUITY, AND INCLUSION.

AND I BELIEVE, MARK.

WAS INVITED TO MAYBE SHARE A COUPLE COMMENTS.

YEAH, WELL, MAYOR, COUNCIL AND COMMUNITY MEMBERS IN THE CHAMBER, I JUST WANT TO SAY THANK YOU AGAIN FOR FOR CELEBRATING AND RECOGNIZING AA AND NHPI. I KNOW THE ACRONYMS DON'T GET SHORTER, BUT YOU KNOW, I APPRECIATE THE LOVE AND SUPPORT AND RECOGNITION OF ALL ASIAN AMERICANS AND PACIFIC ISLANDERS IN FLAGSTAFF BECAUSE AGAIN, THAT'S WHAT MAKES FLAGSTAFF SO AMAZING IS THAT DIVERSE TAPESTRY THAT WE HAVE AND RECOGNIZING WE STILL HAVE A LONG WAY TO GO AND CELEBRATING ALL THE THE FOLKS IN FLAGSTAFF.

[00:30:05]

BUT I DO WANT TO JUST SHARE THAT WE DEFINITELY APPRECIATE IT AS A COMMUNITY THAT IT IS BEING RECOGNIZED AT THIS LEVEL AND WILL CONTINUE TO BE RECOGNIZED MOVING FORWARD.

SO THANK YOU AGAIN AND WE DEFINITELY APPRECIATE YOU.

THANK YOU. THANK YOU.

MARK.

ALL RIGHT. THANK YOU EVERYONE.

NEXT IS COUNCIL LIAISON REPORTS.

[6. COUNCIL LIAISON REPORTS]

AND I'LL START WITH COUNCIL MEMBER HOUSE.

THANK YOU, MAYOR.

NOTHING FOR THE HOUSING COMMISSION YET.

WE HAVE OUR MEETING LATER THIS WEEK, I BELIEVE, FOR THE COMMISSION ON DIVERSITY AWARENESS.

WE CONTINUED DISCUSSIONS OF SUPPORT FOR THE UPCOMING PRIDE IN THE PINES EVENTS FOR JUNETEENTH, AS WELL AS OTHER CONSIDERATIONS WITHIN THE COMMUNITY THAT THEY CONTINUE TO FOCUS ON AND WORK ON.

SO ALL GOOD THINGS THERE.

I'LL ALSO SHARE THAT THIS PAST WEEK, I JOINED IN THE MOST RECENT MEETING OF THE AFRICAN AMERICAN LEGISLATIVE COMMITTEE, AND THEY SPOKE TO SEVERAL ISSUES THAT ARE RISING ACROSS THE STATE AND IN VARIOUS COMMUNITIES THAT ARE IMPACTING NOT ONLY THE BLACK COMMUNITY, BUT ALL COMMUNITIES THROUGHOUT THE STATE OF ARIZONA.

AND THEY ARE HOPING TO FOCUS IN ON STATEWIDE CELEBRATIONS OF JUNETEENTH.

SO IF THERE ARE COMMUNITY EVENTS OR CELEBRATIONS THAT ARE HAPPENING, THEY ARE ASKING FOR COMMUNITIES TO SEND THOSE IN AND LET THEM JOIN IN CELEBRATING WITH US.

THANK YOU. THANK YOU.

COUNCIL MEMBER SWEET. A COUPLE OF UPDATES WITH METROPLAN.

METROPLAN RECEIVED AN AWARD FOR ITS SAFE STREETS MASTER PLAN SS FOR A GRANT FOR A LITTLE OVER $2 MILLION.

THIS PROJECT WILL HELP PARTNERS DEVELOP COMPLETE STREET GUIDELINES, MEET VISION ZERO GOALS, AND DEVELOP A TRANSPORTATION MASTER PLAN.

IT'S SUPER EXCITING THAT WE GOT THAT THE CHESHIRE ASPHALT ART PROJECT IS COMPLETE.

I WAS OUT THERE AND I BELIEVE MAYOR WAS OUT THERE DOING THE FIRST BRUSH STROKE.

AND IF YOU HAVEN'T BEEN OUT THERE, PLEASE GO AND TAKE A LOOK.

HIGHLY RECOMMEND IT.

AND THERE IS A DRONE VIDEO ONLINE AND GO TO THEIR SOCIAL MEDIA AND CHECK THAT OUT.

AND I DID ATTEND WITH COUNCIL MEMBER HOUSE AND MAYOR DAGGETT, THE MULTICULTURAL PARK SCULPTURE EXHIBIT EXHIBITION, RIBBON CUTTING AT THE LIZ ARCHULETA PARK AND AS THE BPAC COUNCIL LIAISON.

IT WAS VERY EXCITING TO SEE THIS FROM BEGINNING TO END.

AND WHAT A TERRIFIC ART INSTALLATION.

I WOULD HIGHLY RECOMMEND EVERYONE GO CHECK IT OUT.

THANK YOU. COUNCIL MEMBER MCCARTHY.

WHERE I SEE THAT LIZ ARCHULETA IS IN THE AUDIENCE.

I HAD A GOOD MEETING WITH THE SUSTAINABILITY STAFF THIS WEEK, AND I'LL JUST LEAVE IT AT THAT.

GOOD MEETING. THANK YOU.

PLEASE. MAIER. THANK YOU FOR THE METROPLAN UPDATE.

COUNCIL MEMBER SWEET.

LOTS OF LIAISON ACTIVITY LATER THIS WEEK.

NOTHING TO REPORT RIGHT NOW.

THANK YOU.

COUNCIL MEMBER HARRIS.

JUST ONE THING.

I ATTENDED THE ART MEET AND GREET FOR THEIR SPEAKER FOR THEIR KICKOFF EVENT.

AND THEN I ATTENDED THE LECTURE, AND IT WAS AN AMAZING LECTURE.

AND I HOPE WE'LL WILL BE ABLE TO IMPLEMENT SOME OF HER SUGGESTIONS.

SO THANK YOU.

[7. CONSENT AGENDA All matters under Consent Agenda are considered by the City Council to be routine. Unless a member of City Council expresses a desire at the meeting to remove an item from the Consent Agenda for discussion, the Consent Agenda will be enacted by one motion approving the recommendations listed on the agenda. Unless otherwise indicated, expenditures approved by Council are budgeted items. STAFF RECOMMENDED ACTION: Approve the Consent Agenda as posted.]

ALL RIGHT. MOVING DOWN TO CONSENT AGENDA.

ALL MATTERS UNDER THE CONSENT AGENDA ARE CONSIDERED BY THE COUNCIL TO BE ROUTINE.

UNLESS A MEMBER OF CITY COUNCIL EXPRESSES A DESIRE AT THE MEETING TO REMOVE AN ITEM FROM THE CONSENT AGENDA FOR DISCUSSION, THE CONSENT AGENDA WILL BE ENACTED BY ONE MOTION APPROVING THE RECOMMENDATIONS LISTED ON THE AGENDA.

UNLESS OTHERWISE INDICATED, EXPENDITURES APPROVED BY COUNCIL ARE BUDGETED ITEMS. AND I UNDERSTAND THAT.

COUNCIL MEMBER HARRIS, YOU HAVE TWO THAT YOU WOULD LIKE TO PULL OUT AND DISCUSS SEPARATELY.

YES. ITEMS A AND E, I BELIEVE.

A CONSIDERATION AND APPROVAL OF A GRANT AGREEMENT.

THIS IS A GRANT AGREEMENT BETWEEN THE EPA AND THE CITY OF FLAGSTAFF, AND B IS CONSIDERATION AND APPROVAL OF A CONTRACT.

[00:35:05]

THIS IS A CONSTRUCTION MANAGER AT RISK.

DESIGN PHASES.

SERVICES AGREEMENT WITH C AND E PAVING.

OH NO MAYOR IT'S E E OKAY.

SKIPPING DOWN TO E.

ECHO. CONSIDERATION AND APPROVAL OF CONTRACT COOPERATIVE PURCHASE CONTRACT WITH MORNING DEW LANDSCAPING FOR THE CLEO MURDOCK NEIGHBORHOOD PARK.

CONSTRUCTION FOR PHASE ONE, IN THE AMOUNT OF $344,169 THROUGH CDBG PROJECT 417-22. OKAY, SO A AND E, WE WILL DISCUSS THOSE IN A MOMENT, BUT I WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA.

ACCEPT ITEMS A AND E.

MAYOR. I'LL MOVE TO ACCEPT THE CONSENT AGENDA.

ITEMS B, C, D.

AND F.

THANK YOU. DO I HAVE A SECOND? I'LL SECOND. THANK YOU.

ANY DISCUSSION? ALL THOSE IN FAVOR? AYE, AYE. ANY OPPOSED? ALL RIGHT. WE'LL GO BACK UP TO ITEM NUMBER A, AND COUNCIL MEMBER HARRIS, LET US KNOW WHAT YOU'RE THINKING.

[A. Consideration and Approval of Grant Agreement: Grant agreement between the U.S. Environmental Protection Agency (EPA) and the City of Flagstaff for the Flagstaff Regional Resilience Project. STAFF RECOMMENDED ACTION: Approve Grant Agreement #98T90401 with the Environmental Protection Agency for the Flagstaff Regional Resilience Project in the amount of $1,000,000.]

[E. Consideration and Approval of Contract: Cooperative Purchase Contract with Morning Dew Landscaping, Inc. for the Cleo Murdoch Neighborhood Park Construction for Phase One in the amount of $344,169.00 through CDBG Project 417C-22 STAFF RECOMMENDED ACTION: Approve contract with Morning Dew Landscaping, Inc. in the total amount of $344,169.00 to construct phase one of the Cleo Murdoch Neighborhood Park; and Authorize the City Manager to execute the necessary documents]

AND I DON'T KNOW IF WE CAN TAKE A AND E AT THE SAME TIME.

BUT I'M GOING TO GIVE MY REASON FOR PULLING THEM.

I AM THE VOLUNTEER EXECUTIVE DIRECTOR FOR THE SOUTH SIDE COMMUNITY ASSOCIATION.

AND THE SOUTH SIDE COMMUNITY ASSOCIATION IS GOING TO BENEFIT FROM BOTH OF THESE ITEMS, AND I DON'T THINK THAT IT IS APPROPRIATE FOR ME TO VOTE ON THIS. SO I AM GOING TO RECUSE MYSELF.

AND THEN COUNCIL CAN DISCUSS.

AND I JUST WANTED TO MAKE THAT CLEAR BECAUSE I DO NOT RECEIVE A SALARY, BUT I DON'T WANT ANYBODY WALKING OUT OF HERE THINKING THAT DEB HARRIS VOTED ON SOMETHING THAT'S GOING TO BENEFIT HER ORGANIZATION.

SO THANK YOU. THANK YOU.

SO THEN WE CAN TAKE A MOTION FOR BOTH.

SO I WILL ENTERTAIN A MOTION FOR A AND E.

MAYOR, I MOVE THAT WE APPROVE CONSENT AGENDA.

CONSENT AGENDA ITEM SEVEN A AND SEVEN E.

THANK YOU.

A SECOND. I'LL SECOND.

ANY DISCUSSION? ALL THOSE IN FAVOR? AYE. AYE AYE.

ANY OPPOSED? ALL RIGHT.

MOVING DOWN.

[A. Consideration and Adoption of Ordinance No. 2024-15: An ordinance amending the Flagstaff City Code, Chapter 1-14, Personnel System, by amending the Employee Handbook of Regulations, Section 1-50-010 Holiday Leave; providing for repeal of conflicting ordinances, severability, authority for clerical correction, and establishing an effective date. STAFF RECOMMENDED ACTION: Read Ordinance No. 2024-15 by title only for the final time City Clerk reads Ordinance No. 2024-15 by title only (if approved above) Adopt Ordinance No. 2024-15]

ROUTINE ITEMS EIGHT.

A CONSIDERATION AND ADOPTION OF ORDINANCE NUMBER 2024-15.

THIS IS AN ORDINANCE AMENDING THE FLAGSTAFF CITY CODE.

CHAPTER ONE DASH 14 PERSONNEL SYSTEM BY AMENDING THE EMPLOYEE HANDBOOK AND REGULATIONS.

SO WE HAVE PREVIOUSLY DISCUSSED THIS AND HAD THE FIRST READING OF THE ORDINANCE TITLE.

SO I WILL ENTERTAIN.

UNLESS ANYONE HAS ANY QUESTIONS OR COMMENTS, I WILL ENTERTAIN A MOTION TO READ THE ORDINANCE BY TITLE ONLY FOR THE FINAL TIME.

YES, I JUST WANTED TO.

WELL, FIRST OF ALL, VERIFY THAT THIS IS THE AMENDMENT THAT IS ADOPTING JUNETEENTH AND INDIGENOUS PEOPLES DAYS AS CITY HOLIDAYS AND AM JUST VERY EXCITED TO SEE THAT MOVING FORWARD, APPRECIATIVE TO THE CITY AND STAFF FOR THAT CONSIDERATION AND MAKING THAT HAPPEN.

AND I WOULD LIKE TO MOVE FOR THE THAT WE READ ORDINANCE NUMBER 2020 4-15 BY TITLE ONLY FOR THE FINAL TIME.

THANK YOU. AND A SECOND I'LL SECOND ANY DISCUSSION.

ALL THOSE IN FAVOR? AYE, AYE. ANY OPPOSED? ALL RIGHT. CITY CLERK.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF AMENDING THE FLAGSTAFF CITY CODE, CHAPTER ONE DASH 14 PERSONNEL SYSTEM BY AMENDING THE EMPLOYEE HANDBOOK OF REGULATIONS.

SECTION ONE DASH 50 DASH 010 HOLIDAY LEAVE PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES.

SEVERABILITY AUTHORITY FOR CLERICAL CORRECTIONS AND ESTABLISHING AN EFFECTIVE DATE.

THANK YOU AND A MOTION TO ADOPT THE ORDINANCE.

[00:40:03]

MAYOR. I'LL MOVE TO ADOPT ORDINANCE NUMBER 2020 4-15.

CAN I GET A SECOND? I'LL SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? AYE. ANY OPPOSED? ALL RIGHT. MOVING DOWN TO ITEM NUMBER EIGHT.

[B. Consideration and Adoption: City of Flagstaff Economic Development Strategic Plan 2024-29. STAFF RECOMMENDED ACTION: Hear about changes to the plan based on previous Council discussion, ask any additional questions, and approve the plan. ]

BE CONSIDERATION AND ADOPTION.

CITY OF FLAGSTAFF ECONOMIC DEVELOPMENT STRATEGIC PLAN.

HELLO. HELLO.

GOOD EVENING. MAYOR, VICE MAYOR AND COUNCIL, DAVID MCINTYRE, COMMUNITY INVESTMENT DIRECTOR.

I'D ACTUALLY LIKE TO POINT OUT I AM JOINED HERE BY YOUR NEW ECONOMIC DEVELOPMENT ADMINISTRATOR, CRAIG ZINET CO, RECENTLY PROMOTED TO THE POSITION AFTER WORKING SUPER HARD ON ECONOMIC DEVELOPMENT FROM OTHER ROLES FOR A WHILE AND GETTING HIS AAD PRO CERTIFICATION.

SO JUST WANTED TO ACKNOWLEDGE THAT YOU'RE JOINED BY OUR NEWEST MEMBER OF THE ECONOMIC DEVELOPMENT TEAM.

ADDITIONALLY, YOU ARE JOINED BY STILETTO.

MAKE A POINT, WHO IS THE CONSULTING FIRM THAT WAS SELECTED THROUGH OUR PROCUREMENT PROCESS AND WHO YOU MET ABOUT A MONTH AGO WHEN WE WERE HERE PRESENTING ON THIS ITEM PRIOR.

WE'RE GOING TO DO A BRIEF RECAP AND TALK ABOUT SOME OF THE CHANGES THAT WERE INCORPORATED.

AND WITH THAT, I'M ACTUALLY JUST GOING TO HAND IT OVER TO STILETTO AND TO LAURA O'BLENIS TO GET US STARTED.

GREAT. THANKS VERY MUCH, DAVE, AND GREAT TO SEE YOU ALL AGAIN.

THANKS SO MUCH FOR HAVING US HERE.

I'M LAURA O'BLENIS, I'M THE PRESIDENT AND CEO OF STILETTO.

MAKE A POINT.

AND WE SPECIALIZE IN ECONOMIC DEVELOPMENT STRATEGIES, CLUSTER DEVELOPMENT AND INNOVATION ECOSYSTEM BUILDING THROUGHOUT NORTH AMERICA.

I'M VERY HAPPY TO HAVE WITH ME ADAM PEABODY, OUR DIRECTOR OF ECOSYSTEMS AND HAS BEEN KEY IN STAKEHOLDER OUTREACH THROUGH THE PROCESS, AS WE'VE BEEN GOING THROUGH, AS DAVE MENTIONED, WHAT WE WANTED TO DO FOR THE DISCUSSION TODAY, WE'VE GOT A VERY BRIEF DECK PUT TOGETHER JUST TO KIND OF HAVE A LITTLE BIT OF A RECAP FROM OUR LAST CONVERSATION AND THEN DIVE INTO ANY QUESTIONS THAT YOU MIGHT HAVE OF THE REPORT THAT YOU WOULD HAVE RECEIVED AND ANY FEEDBACK THAT YOU MAY HAVE FOR US AS WE LOOK TO MOVE FORWARD WITH THE ADOPTION OF THIS PLAN AND MOVING ALONG TO IMPLEMENTATION.

SO THANK YOU ALL FOR YOUR TIME AND ATTENTION IN APRIL.

JUST WANTED TO RESTATE A FEW QUICK POINTS.

THIS WAS A COLLABORATIVE, EVIDENCE BASED STRATEGY, AND WE HAVE A NUMBER OF ELEMENTS THAT WENT INTO THIS, BOTH QUANTITATIVE AND QUALITATIVE RESEARCH AND ASSESSMENT. WE DID DO A COMMUNITY SURVEY.

WE RECEIVED ALMOST 500 RESPONSES FROM THE SURVEY, WHICH IS A VERY GOOD RESPONSE RATE FOR COMMUNITY OF YOUR SIZE.

WE USUALLY LIKE TO SEE A MINIMUM OF 2 TO 300.

AND SO WE'VE GOTTEN NEARLY DOUBLE THAT, WHICH IS GREAT, OVER 34,000 DATA POINTS THAT WERE COLLECTED THROUGH THE PROCESS, INCLUDING SEVEN FOCUS GROUPS THAT WERE COMPLETED WITH VARIOUS MEMBERS OF THE COMMUNITY THROUGH THE EXERCISE.

SO QUICK RECAP ON THAT.

A LITTLE BIT OF A RECAP ON THE COMMUNITY PARTICIPATION AND THE THINGS THAT WE HEARD AND WHY WE WOULD HAVE EMBEDDED SOME OF THE RECOMMENDATIONS BASED ON THE THEMES THAT WE HEARD FROM THE VARIOUS GROUPS WE'VE BROKEN THE GROUPS INTO REALLY THREE BUCKETS AND CATEGORIES.

FIRSTLY, THE BUSINESS COMMUNITY MAKING SURE THAT THERE'S A FOCUS ON TALENT RETENTION AND ATTRACTION, INVESTMENT AND BUSINESS GROWTH AND ATTRACTION, AND INCREASED EFFICIENCY AND OPTIMIZED PROCESS FOR GRANTING BUSINESS AND DEVELOPMENT PERMITS FROM THE COMMUNITY MEMBERS.

THE MAIN THEMES THAT WE HEARD WAS ABOUT INCREASING COMMUNITY AWARENESS OF ECONOMIC OPPORTUNITIES, ENGAGEMENT, REPORTING AND ACCOUNTABILITY, AND HOUSING AFFORDABILITY AND COST OF LIVING. AND THEN FROM THE ECONOMIC DEVELOPMENT LEADERSHIP CATEGORY OF FEEDBACK, WE WOULD HAVE IMPROVING COMMUNITY ALIGNMENT TO ENHANCE THE BUSINESS CLIMATE, SUPPORTING NAVIGATION OF BUREAUCRATIC PROCESSES FOR BUSINESS, INDUSTRY DIVERSIFICATION AND INFRASTRUCTURE AND ACCESSIBILITY, WHICH WOULD INCLUDE BROADBAND AND TRANSPORTATION. THOSE WERE THE MAIN THEMES THAT WE WOULD HAVE HEARD FROM THOSE CORE GROUPS, AND WHAT HELPED TO INFORM THE RECOMMENDATIONS, IN ADDITION TO THE 34,000 DATA POINTS THAT WE WOULD HAVE COLLECTED FROM A VARIETY OF DATA COLLECTION AND ANALYSIS THAT WAS DONE.

SO JUST A QUICK RECAP AND YOU'LL SEE THIS IN THE REPORT.

AND BUT WE WANTED TO JUST BRING THIS BACK TO THE FOREFRONT.

REALLY THE VISION IS TO FOR THE CITY OF FLAGSTAFF TO HAVE A DIVERSE AND RESILIENT ECONOMY, ONE THAT IS UNITED, THAT PROMOTES SUSTAINABLE GROWTH, INNOVATION AND OPPORTUNITY, WITH A MISSION TO SUPPORT AND TO ENHANCE ECONOMIC GROWTH AND WELL-BEING FOR ALL.

WITH THESE IN MIND, WE IDENTIFIED FIVE PRIORITY SECTORS.

WE DO LIKE TO SEE THIS OVER TIME NARROWED DOWN TO 2 TO 4.

AND SO WE WOULD ANTICIPATE IN THE NEXT PHASE OF THE ASSESSMENT OF THE MARKET OPPORTUNITIES THAT MAY EXIST AND A LITTLE BIT MORE DUE DILIGENCE THAT MAY BE NEEDED TO NARROW THAT DOWN, THAT YOU MIGHT SEE THIS SHRINK OVER TIME IN TERMS OF SOME OF THESE FOCUS AREAS, BUT BASED ON THE DATA POINTS THAT WE COLLECTED AND THE ANALYSIS OF THE STRENGTHS THAT YOU HAVE TO BUILD ON, WE IDENTIFIED FIVE CORE SECTORS THAT WE BELIEVE AS HAVE POTENTIAL FOR YOU IN LEVERAGING FURTHER MARKET

[00:45:01]

OPPORTUNITIES. AND THAT INCLUDES ASTRONOMY, FOOD PROCESSING, FOREST PRODUCTS, MEDICAL AND HEALTHCARE, AND ADVANCED MANUFACTURING.

THE PILLARS FOR IMPACT MEANING THE FOUR CORE ELEMENTS THAT ARE THE THEMES THAT WHERE THE RECOMMENDATIONS SIT INCLUDE FOCUS AND POSITIONING, BRANDING AND AWARENESS SUSTAINABLE ECONOMIC DEVELOPMENT AND COMMUNITY ECOSYSTEM DEVELOPMENT.

AND WE DID GO THROUGH SOME OF THE RECOMMENDATIONS IN OUR LAST DISCUSSION.

BUT FOR TODAY'S CONVERSATION, WE REALLY WANT TO HEAR FROM YOU IN TERMS OF ANY FEEDBACK THAT YOU HAVE FOR US AND THINGS THAT RESONATE WITH YOU AND HOPEFULLY MAKE SENSE TO YOU IN THE CONVERSATION. BUT WE DO HAVE SOME HIGH LEVEL PILLARS AND SOME OF THE CORE ELEMENTS HERE FOR YOU AT A GLANCE LOOKING AT FOCUS AND POSITIONING, YOU'RE GOING TO SEE THINGS LIKE IDENTIFYING AND MOBILIZING PRIORITY SECTORS, EXPLORING ADJACENT SECTORS, AND ALIGNING THE TALENT PIPELINE AND THE BRANDING AND AWARENESS LOOKING AT THINGS LIKE BRANDING THE CITY OF FLAGSTAFF AND THE LAST COUNCIL MEETING WE DID SEE, THERE'S SOME ELEMENTS AROUND YOUR LOGO THAT'S GOING TO BE REDESIGNED, WHICH IS VERY EXCITING COMMUNICATING THE CITY OF FLAGSTAFF VALUE PROPOSITION, ENHANCING YOUR WORKFORCE PARTNERSHIPS.

INCREASE AWARENESS OF SECTOR STRENGTHS AND RESOURCES.

RAISING YOUR COMMUNITY.

AWARENESS OF CITY POLICIES, PROCEDURES AND SUPPORTS.

SUSTAINABLE ECONOMIC DEVELOPMENT IS REALLY ABOUT DEFINING SUSTAINABLE ECONOMIC DEVELOPMENT, ESTABLISHING SOME CORE METRICS IN THAT AREA, ATTRACTING AND EXPANDING YOUR BUSINESSES THAT ALIGN WITH YOUR CRITERIA AROUND SUSTAINABLE DEVELOPMENT, IDENTIFYING OPPORTUNITIES FOR INFRASTRUCTURE EXPANSION AND THEN EXPANDING BUSINESS SUPPORTS THAT PROMOTE THAT SUSTAINABLE ECONOMIC DEVELOPMENT.

AND THEN FINALLY, YOUR COMMUNITY ECOSYSTEM DEVELOPMENT IS ABOUT PURSUING FUNDING TO ADDRESS YOUR INFRASTRUCTURE CHALLENGES, STRENGTHENING YOUR COMMUNITY PARTNERSHIPS, AND THEN FORMALIZING YOUR RELATIONSHIPS WITH BUSINESS SUPPORT ORGANIZATIONS.

JUST AGAIN, A REAL QUICK RECAP ON THE SECTORS.

WE INCLUDED JUST SOME HIGH LEVEL DATA POINTS HERE IN TERMS OF WHY THESE FIVE ROSE TO THE TOP.

AND AGAIN, THAT IS EXPECTED TO BECOME REFINED FURTHER BASED ON MARKET MARKET OPPORTUNITIES.

AND THAT MAY EXIST IN AND AROUND YOUR SURROUNDING AREA.

BUT THIS IS HERE FROM A, FROM A VERY HIGH LEVEL FOR YOU SO THAT YOU CAN SEE THE CORE DATA POINTS THAT WE LOOKED AT, WHICH WOULD INCLUDE YOUR POST-SECONDARY PROGRAMS AT YOUR HIGHER EDUCATION INSTITUTIONS, COLLEGES AND UNIVERSITIES, THE TYPES OF JOB POSTINGS THAT WE'VE SEEN AND YOUR WORKFORCE YOUR R&D EXPENDITURES.

SO RESEARCH AND DEVELOPMENT EXPENDITURES.

AND SO HOPEFULLY THIS HELPS GIVE A VERY HIGH LEVEL SNAPSHOT OF THESE AREAS AND SOME OF THE KEY OPPORTUNITIES.

MEASURING IMPACT OVER TIME. WE'VE INCLUDED THIS AND YOU'LL SEE THIS IN THE REPORT AND HAPPY TO TO DISCUSS.

BUT WE WE WE FIND THIS IS HELPFUL IN TERMS OF MANAGING SORT OF TIMELINES OF WHEN CERTAIN ELEMENTS THAT ARE INCLUDED BOTH IN THE STRATEGY AND HOW THIS WILL BE IMPLEMENTED OVER TIME, OF WHEN YOU MIGHT SEE IMPACT IN SOME OF THESE AREAS, WHETHER IT'S TODAY, WITHIN A YEAR, WITHIN A COUPLE OF YEARS, WITHIN FIVE, WITHIN TEN AND WITHIN 20.

WE DO OFTEN SEE WHEN YOU'RE BUILDING CLUSTERS AND DEVELOPING THESE AREAS AND THESE SECTORS OVER TIME, IT DOES TAKE ABOUT A DECADE TO SEE, YOU KNOW, MEANINGFUL AND INTENTIONAL IMPACT.

AND SO SOME OF THE ACTIVITIES CAN BE MEASURED OVER TIME AS YOU BUILD THAT UP.

BUT UNDERSTANDING THAT THERE ARE SOME ELEMENTS THAT THAT MAY TAKE A BIT LONGER TO MEASURE.

AND SO IDENTIFYING WAYS THAT WE CAN SEE INCREMENTAL PROGRESS OVER TIME IS VERY IMPORTANT.

AND AND WHY WE THOUGHT THIS MIGHT BE HELPFUL TO YOU IN OUR LAST COUNCIL CONVERSATION.

AND AS DAVE MENTIONED, THIS WAS ABOUT A MONTH AGO.

THERE WAS A FEW DIFFERENT THINGS THAT WERE IDENTIFIED FROM THE CONVERSATION.

AND THANK YOU ALL FOR THE FOR THE QUESTIONS.

THEY WERE VERY HELPFUL TO US IN REFINING THE REPORT AND ADDING SOME OTHER ELEMENTS IN.

SO WE DID ADD IN A NUMBER OF ELEMENTS BASED ON YOUR FEEDBACK FROM WHERE WE WERE PRIOR TO THAT CONVERSATION AND WHERE WE WHERE WE LANDED WITH THE REPORT TODAY.

SO WANTING TO MAKE SURE, YOU KNOW, OBVIOUSLY TOURISM IS A REALLY CORE FOUNDATIONAL ELEMENT.

IT'S NOT INCLUDED AS ONE OF YOUR SECTORS BECAUSE YOU DO HAVE A SEPARATE TOURISM STRATEGY.

AND SO WE DIDN'T WANT TO DIVE INTO THAT BECAUSE WE DIDN'T WANT TO DUPLICATE EFFORTS.

BUT WE DID INCLUDE THAT AS A FOUNDATIONAL SECTION FOUNDATIONAL COMPONENT FOR YOU.

THERE WAS SOME FEEDBACK AND COMMENTS AROUND CHILDCARE AND HOUSING AS PROMINENT ISSUES.

AND SO WE ACTUALLY DID ADD IN SOME LANGUAGE TO PRIORITIZE THESE ELEMENTS, BOTH IN THE SWOT ANALYSIS AND SOME OF THE OTHER CORE PIECES.

THERE WAS ALSO A COMMENT AROUND FILM BEING MORE PROMINENT AS A POTENTIAL OPPORTUNITY.

AND SO WE DID INCLUDE THAT INTO PILLAR THREE, ADDING IT AS AN EMERGING SECTOR FROM A TOURISM SECTOR SNAPSHOT PERSPECTIVE.

WE THOUGHT THAT WAS A A GOOD WAY TO KIND OF MARRY THAT IN AND LOOK AT THAT, BECAUSE WE DID THINK THAT THAT WAS AN INTERESTING OBSERVATION AND ONE THAT YOU MAY WANT TO EXPLORE.

WE ALSO ADDED IN THERE WAS A COMMENT AROUND THE MARKET DEMAND AND LOOKING AT SOME OF THOSE ELEMENTS THAT SOME OF THE PROJECTIONS LOOK TO BE FORECASTING IN

[00:50:07]

SORT OF A DECLINE.

AND SO WHAT WE WOULD SUGGEST TO THAT, AND WHAT WE'VE SEEN IN OTHER AREAS IS DOING MODELING AND FORECASTING FOR WHAT THE FUTURE DEMAND MAY BE, SO THAT YOU CAN ACTUALLY DO AN ASSESSMENT OF WHERE THOSE SECTORS WOULD GO BASED ON HOW OTHER AREAS OF THE ECONOMY MAY GROW ONCE IT'S DIVERSIFIED, INSTEAD OF JUST STUDYING PAST PERFORMANCE.

WE DO FIND THAT THAT IS HELPFUL.

AND SO WE'VE ACTUALLY ADDED THAT IN AS A RECOMMENDATION TO BE ABLE TO GATHER THE APPROPRIATE INFORMATION TO MAKE DECISION ON THAT SECTOR SNAPSHOTS.

AGAIN, MENTIONING THAT WE DID ADD IN SOME OTHER INFORMATION SPECIFICALLY ON TOURISM IN THE REPORT TO SHOW THE FOUNDATIONAL PIECE AND HOW IMPORTANT IT IS TO YOUR EXISTING ECONOMY AS YOU WORK TO DIVERSIFY IN SOME OF THOSE OTHER SECTOR AREA OPPORTUNITIES.

WE THERE WAS ALSO SOME FEEDBACK ON HOUSING TO MAKE THAT A LITTLE BIT MORE PROMINENT AS A PRECURSOR TO ECONOMIC DEVELOPMENT.

WE, WE HAVE NORMAL TRADITIONAL FOUNDATIONAL ELEMENTS THAT WE LOOK AT AROUND INFRASTRUCTURE, WHICH DOES INCLUDE HOUSING, TRANSPORTATION AND OTHER PIECES.

AND SO WE'VE ADDED THAT IN AND THEN WE ALSO ADDED IN THE SALES TAX AS A KPI.

AND THIS IS INCLUDED IN PILLAR ONE.

SO I KNOW THAT'S A LOT TO KIND OF GO THROUGH.

BUT WANTED TO FLAG THAT THAT WE HEARD YOUR FEEDBACK.

WE'VE INCORPORATED IN VARIOUS AREAS WITHIN THE REPORT.

WE HOPE THAT THAT HELPS.

AND WE DO THINK THAT THAT ROUNDS IT OUT QUITE NICELY IN TERMS OF WHERE WE WERE.

AND SO WANTED TO THAT'S REALLY WHAT WE WANTED TO COVER, TO HIGHLIGHT.

WE REALLY WANT TO HEAR FROM YOU IN TERMS OF ANY FEEDBACK THAT YOU MAY HAVE.

I'LL STOP THE SCREEN SHARE AND HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE AT THIS TIME.

WELL. THANK YOU. LAURA.

COUNCIL. QUESTIONS? COMMENTS? COUNCIL MEMBER SWEET.

THANK YOU. FIRST OFF, THANK YOU FOR TAKING OUR COMMENTS FROM THE LAST MEETING AND INCORPORATING THAT.

IT'S NICE TO SEE THAT INCLUDED.

AND MY QUESTION IS FOR DAVE, I'M WONDERING, AFTER TONIGHT, IS THERE MORE OPPORTUNITIES TO HAVE COMMUNITY CONVERSATIONS ON SOME VARIOUS IDEAS THAT WE'VE BEEN GETTING EMAILS ON THAT I FIND INTRIGUING? MAYOR COUNCIL MEMBER. YES, THERE'S GOING TO BE A LOT OF OPPORTUNITIES FOR THOSE TYPES OF PIECES THAT ARE PART OF THE IMPLEMENTATION.

WHAT WE'RE WHAT WE'RE KIND OF HOPING FOR TONIGHT, ALTHOUGH IT'S UP TO YOU, OF COURSE, WOULD BE ADOPTION OF THE DOCUMENT ITSELF.

AND THEN WE CAN MOVE INTO THAT IMPLEMENTATION STAGE.

WE'VE ALREADY TALKED WITH SOME OF OUR PARTNERS INTERNALLY AND EXTERNALLY ABOUT, YOU KNOW, WHERE SOME OF THAT IMPLEMENTATION COULD GO BASED ON HOW THE DOCUMENTS FORMED DEVELOPING A BETTER UNDERSTANDING WITHIN THE COMMUNITY OF WHAT SUSTAINABLE ECONOMIC, SUSTAINABLE ECONOMIC DEVELOPMENT IS WOULD BE AN AREA FOR THERE.

A LOT OF THE COMMENTS THAT WERE RECEIVED FROM F CUBED COULD BE ALSO C SEEN AS A PART OF THAT IMPLEMENTATION, WHERE WE FOCUS ON THINGS LIKE HOW CHILDCARE COULD BE A PART, HOW COMMERCIAL KITCHENS FIT INTO FOOD PROCESSING.

SO REALLY WHERE WE SEE THIS GOING FROM HERE IS THAT ADOPTION CREATES THIS HIGH LEVEL FRAMEWORK, WHICH THEN WE ROLL INTO IMPLEMENTATION AND THAT THAT REALLY ENGAGES ON A MORE DETAILED LEVEL, THE SPECIFIC COMMUNITY CONVERSATIONS THAT I THINK YOU'RE HEARING ABOUT.

WE WE LOOK FORWARD TO THOSE CONVERSATIONS.

AND IN FACT, AS PART OF THE STRATEGIES AND THE RECOMMENDATIONS, YOU'LL SEE THAT SOME OF IT IS ABOUT COMING TO COMMUNITY CONSENSUS AND ACTUALLY BUILDING A SENSE OF UNITY WITHIN THE COMMUNITY. AND AND THAT'S DONE, I BELIEVE, WITH THOSE VOICES THAT YOU'VE BEEN HEARING FROM IN MIND AND AT THE TABLE, SO THAT WE CAN FIGURE OUT WHAT THOSE KPIS, WHAT THOSE KEY PERFORMANCE INDICATORS ARE TO AVOID ACRONYMS AND AND REALLY TAKING A DEEP DIVE INTO WITH THE RECOMMENDATIONS THAT WE HAVE, HOW DO WE REALLY MAKE IT FIT? FLAGSTAFF WHAT IS SUSTAINABLE ECONOMIC DEVELOPMENT IN TERMS OF BOTH GREEN AND SUSTAINABLE SOCIAL NORMS? SO IS THAT ANSWER YOUR QUESTION? IT DOES. THANK YOU. AND I LOOK FORWARD TO HEARING MORE ABOUT THOSE CONVERSATIONS DOWN THE ROAD.

THANK YOU. MY PLEASURE.

COUNCIL. ALL RIGHT.

I HAVE A COUPLE OF QUESTIONS.

AND ONE IS KIND OF IN THE WEEDS.

LAURA, ONE OF THE POINTS WHEN YOU WERE GOING OVER THE DIFFERENT GROUPS AND FEEDBACK THAT YOU RECEIVED UNDER COMMUNIST OF ECONOMIC OPPORTUNITIES, AND I'M WONDERING IF YOU COULD JUST ELABORATE ON THAT. WAS THE PUBLIC ASKING FOR TO KNOW WHEN THERE ARE GRANT OPPORTUNITIES? AN ATOM. I'M GOING TO ACTUALLY CALL ON ATOM AS WELL.

I KNOW HE WAS DEEPLY INVOLVED IN THE FEEDBACK, AND I'M I'M HAPPY TO KIND OF CHIME IN.

AND AND ADAM, IF YOU WANTED TO ADD ANYTHING FURTHER, I THINK THE FEEDBACK WAS ULTIMATELY AROUND THE NOTION THAT THERE THERE'S A LOT OF REALLY GREAT THINGS HAPPENING. BUT THE MECHANISM OF SHARING THAT FEEDBACK IS NOT NECESSARILY CLEAR FROM A COMMUNITY PERSPECTIVE IN TERMS OF SOME OF THE INITIATIVES THAT ARE

[00:55:06]

HAPPENING THAT MIGHT BE THAT MIGHT BE POSITIVE FOR THE COMMUNITY AND THEY SIMPLY WERE NOT AWARE OF.

SO THAT'S WHERE THE BRANDING AND AWARENESS RECOMMENDATIONS KIND OF CAME IN, IN TERMS OF COMMUNICATING THAT IN A WAY, AND IN PLATFORMS WHERE FOLKS ARE SEEING IT, BECAUSE I DON'T THINK THE CRITICISM WAS AROUND THAT THINGS WERE NOT NECESSARILY HAPPENING, BUT SOMETIMES PEOPLE DON'T NECESSARILY KNOW ABOUT THEM.

AND, ADAM, IF YOU WANTED TO ADD IN ON THAT, I KNOW YOU LIKELY HAVE SOME ADDITIONAL CONTEXT YOU MAY WANT TO SHARE.

THANKS, LAURA, AND THANK YOU FOR THE QUESTION, MAYOR.

THE JUST TO ADD TO LAURA'S ANSWER.

CERTAINLY, YOU KNOW, WHAT WE HEARD WAS REALLY, YOU KNOW, BRINGING THE COMMUNITY ALONG FOR THE JOURNEY.

AS THIS STRATEGY IS IMPLEMENTED AND YOU KNOW, HEARING ABOUT SPECIFIC INITIATIVES, SPECIFIC, YOU KNOW, SUCCESS STORIES FROM BUSINESSES ETC. WERE SOME OF THE POINTERS AND ASKS THAT WE ARE HEARING FROM AS IT RELATES TO THAT SPECIFIC POINT.

SO IT WASN'T THAT ENTREPRENEURS WITHIN THE COMMUNITY WANTED TO KNOW MORE ABOUT OPPORTUNITIES THAT MIGHT BE AVAILABLE TO THEM.

IT WAS THAT THE COMMUNITY WANTED TO HEAR MORE ABOUT WHAT WAS GOING ON WITHIN THE CITY'S ECONOMIC VITALITY.

WORK. THAT'S CORRECT.

AND REALLY, YOU KNOW, SHAPING THAT AS THE POSITIVE STORY AND STORIES AND UNDERSTANDING YOU KNOW, WHERE THE WINDS ARE, HOW FLAGSTAFF, YOU KNOW, DIFFERS FROM OTHER COMMUNITIES AND WHERE THE REAL STRENGTHS WERE FOR THE COMMUNITY OVERALL.

OKAY. THANK YOU.

AND I HAVE A QUESTION FOR YOU, MR. MCINTYRE. AND THERE IS NO CORRECT ANSWER TO THIS.

MY FAVORITE. I'M WONDERING WHETHER YOU HAVE COMPARED AND CONTRASTED THIS PLAN WITH, SAY, O'CONNOR'S PLAN OR ANY OTHER REGIONAL PLANS.

AND IF YOU HAVE IF YOU IF YOU HAD ANY TAKEAWAYS FROM THAT AND IF YOU HAVEN'T.

THAT'S ALL RIGHT.

MAYOR. YEAH, HAPPILY.

SPEAK TO THAT AND THEN I MAY OFFER UP THAT.

THERE WAS ALSO SOME COMPARISONS DONE WITH OTHER COMMUNITIES THAT WE HAVEN'T SPENT A LOT OF TIME TALKING ABOUT, AND MAYBE THOSE WOULD BE HELPFUL TOO.

BUT WE DID. WE ACTUALLY USED SEDONA'S PLAN AS AN EXAMPLE OF WHAT WE WERE LOOKING FOR WHEN WE PUT OUT OUR SOCK, BECAUSE WE FELT LIKE, LIKE AS A NEIGHBORING COMMUNITY, IT HAD BEEN DONE VERY WELL. BUT OF COURSE, FLAGSTAFF AND SEDONA ARE QUITE DIFFERENT.

SO IN SOME WAYS WE LOOKED AT THAT PLAN AS AS AN EXAMPLE OF WHAT WE WERE KIND OF HOPING FOR.

BUT OBVIOUSLY THEIR FOCUS IS VERY DIFFERENT THAN OURS.

AND THEIR THEIR TYPE OF ECONOMIC SITUATION IS VERY DIFFERENT THAN OURS AS WELL.

WHEN IT CAME TO ECONOMY, THERE ARE SOME NOTICEABLE DIFFERENCES BETWEEN A KONA IS A REGIONAL ORGANIZATION AND OBVIOUSLY THEIR THEIR LOOK IS MUCH BROADER.

ALSO PART OF THE THE ONE OF THE MAJOR DIFFERENCES IS THAT THERE THERE'S THOSE FOCUSED SIGNIFICANTLY ON HOUSING BECAUSE WE KNOW THAT THAT'S A MAJOR ECONOMIC ISSUE.

HOWEVER, BECAUSE WE ARE THE CITY IN PARTICULAR, AND WE HAVE A HOUSING SECTION AND A HOUSING TEN YEAR PLAN, IT REALLY FELT LIKE WE NEEDED TO FOCUS MORE ON THE TRADITIONAL ECONOMIC DEVELOPMENT PIECES THAT HELP GAIN ENOUGH WEALTH WITHIN THE COMMUNITY TO BE ABLE TO COMPETE FOR HOUSING, BECAUSE WE KNOW SOME OF THOSE EXTERNAL COMPETITIONS ARE GOING TO CONTINUE. WE HAVE MET WITH THE KONA ECONO WAS A PART OF THE COMMUNITY CONVERSATION.

THEY WERE A STAKEHOLDER INVOLVED, AND WE'VE WORKED TO FIGURE OUT HOW THESE CAN SUPPORT EACH OTHER.

BUT WE WERE REALLY FOCUSING ON FLAGSTAFF ITSELF.

AND KONA IS LEGITIMATELY A MUCH BROADER, MORE REGIONAL APPROACH.

BUT YES, WE'VE BEEN LOOKING AT AT THE STRATEGIC PLANS FROM A NUMBER OF COMMUNITIES GETTING IDEAS AND THOUGHTS.

I'LL ASK LAURA AND ADAM.

I KNOW THEY DID COMPARISONS WITH OTHER COMMUNITIES AND I BELIEVE READY KONA'S PLAN AS PART OF THEIR PROCESS.

SO, LAURA, DID YOU WANT TO ADD ANYTHING OR.

ADAM. YEAH, SURE.

THANK YOU FOR THAT. AND THANK YOU FOR THE QUESTION, MAYOR.

TO DAVE'S POINT, WE WE CERTAINLY DID LOOK AT THE ARKONA PLAN AND WANTING TO MAKE SURE THAT THERE'S IT'S AUGMENTING EXISTING ACTIVITIES THAT ARE TAKING PLACE WITHIN THE COMMUNITY WITH OTHER ORGANIZATIONS THAT ARE LEADING IN THE FIELD OF ECONOMIC DEVELOPMENT AND PROSPERITY.

AND SO WE LOOKED BOTH INTERNALLY, SORT OF AT THE LOCAL LEVEL SOME OF THE ELEMENTS THAT WERE BEING CONSIDERED, WE DO A FAIR AMOUNT IN THE STATE OF ARIZONA.

AND SO WE ALSO WOULD HAVE LOOKED CLOSELY AT SOME OTHER NEIGHBORING COMMUNITIES THAT WOULD BE SIMILAR SIZE AND SCALE OR SIMILAR CHARACTERISTICS.

AND THEN WE ALSO LOOKED A BIT MORE BROADLY TO OTHERS IN OTHER STATES THAT HAD SIMILAR TYPES OF DYNAMICS AND CORE VALUE PROPOSITION OFFERINGS INCLUDING IN MONTANA, NORTH CAROLINA, UTAH, COLORADO.

AND SO REALLY UNDERSTANDING WHAT THEY WERE KIND OF DOING AND STUDYING THAT IN TERMS OF WHAT WHAT MIGHT WE LEARN FROM SORT OF A BEST PRACTICES PERSPECTIVE.

[01:00:04]

SO JUST WANTED TO HIGHLIGHT THAT, THAT THAT WAS PART OF THE PROCESS IN LOOKING AT BOTH THE LOCAL AREA, YOUR LOCAL ORGANIZATIONS AND AND TRYING TO MAKE SURE THAT WHAT WAS BEING PUT FORWARD WOULD BE ADDITIVE AND NOT DUPLICATION.

AND AND THEN ALSO LOOKING AT OTHER ECOSYSTEMS AND AREAS THAT HAVE BEEN SUCCESSFUL AND HOW WE MIGHT BE ABLE TO LEARN FROM THAT.

I DON'T KNOW, ADAM, IF YOU WANTED TO ADD ANYTHING, BUT.

YEAH. NO, I THINK THAT THAT PRETTY MUCH COVERS IT.

GREAT. THANK YOU. THANK YOU.

THANK YOU ALL. SO COUNCIL.

IF THERE ARE NO ADDITIONAL QUESTIONS OR COMMENTS, I WILL ENTERTAIN A MOTION TO APPROVE THE PLAN.

MAYOR, I MOVE THAT WE APPROVE THE ECONOMIC DEVELOPMENT STRATEGIC PLAN 2024 TO 2029.

THANK YOU. AND AND YOU SECONDED IT.

COUNCIL MEMBER HOUSE.

ANY DISCUSSION? ALL THOSE IN FAVOR? AYE, AYE. ANY OPPOSED? ALL RIGHT. THANK YOU SO MUCH FOR ALL THE WORK THAT YOU ALL HAVE PUT INTO THIS.

AND TO ALL THE COMMUNITY MEMBERS WHO LENT THEIR TIME AND EXPERTISE TO DEVELOPING THIS PLAN AS WELL.

THANK YOU, COUNCIL, FOR YOUR LEADERSHIP.

THANK YOU. OKAY.

WE ARE MOVING DOWN NOW.

ITEM C CONSIDERATION AND APPROVAL OF PRELIMINARY PLAT.

[C. Consideration and Approval of Preliminary Plat: JP325, LLC requests Preliminary Plat approval for Juniper Point, Parcel 2, located at 2000 John Wesley Powell Boulevard, a single-family subdivision of 62 lots on 17.54 (gross) or 11.36 (net) acres in the RR (Rural Residential) Zone utilizing the Planned Residential Development (PRD) option. STAFF RECOMMENDED ACTION: Approve the Preliminary Plat in accordance with the findings presented in this report, the following conditions, and the Planning and Zoning Commission recommendation of approval (6-0 vote in favor on April 24, 2024). The Final Plat shall adjust the plat boundaries to include the remainder of Juniper Point Parcel 1 Tract G. The Final Plat and Engineering plans shall adjust the plat boundaries to include all areas that are being utilized for Resource Protection calculations.]

THANK YOU. MAYOR. MY NAME IS WESLEY WELCH WITH THE PLANNING DEPARTMENT, AND I'M HERE TO PRESENT THE PRELIMINARY PLAT FOR JUNIPER POINT PARCEL TWO.

SO JUST A LITTLE OVERVIEW.

THIS REQUEST IS FROM A JP 325 LLC CAPSTONE HOMES, FOR A PRELIMINARY PLAT APPROVAL FOR PARCEL TWO LOCATED AT 2000 JOHN WESLEY POWELL.

IT'S A SINGLE FAMILY SUBDIVISION WITH 62 SINGLE FAMILY HOME LOTS ON 17.54 ACRES IN THE RR ZONE.

STAFF APPROVED THE PLAT ON MARCH 15TH, AND THEN THE PLANNING AND ZONING COMMISSION RECOMMENDED APPROVAL ON APRIL 24TH.

JUST A QUICK VICINITY MAP IN CASE YOU DON'T KNOW WHERE IT IS, IT'S GOING TO BE NORTH OF PINE CANYON.

IT'S GOING TO BE JUST EAST OF COCONINO COMMUNITY COLLEGE.

THERE'S SOME UNDEVELOPED LAND IN THE AREA.

IT'S PART OF THE LARGER OVERALL JUNIPER POINT DEVELOPMENT.

AND RIGHT NOW THEY HAVE PARCEL ONE UNDER CONSTRUCTION.

AND THEN WE HAVE A FEW MORE PLATS IN THE SYSTEM RIGHT NOW.

SO A LITTLE BIT OF BACKGROUND.

IT'S 325 ACRE SITE BETWEEN JOHN WESLEY POWELL BOULEVARD AND I-40.

PARCEL ONE HAS 38 LOTS WITHIN 105.8 ACRES.

PARCEL TWO FALLS WITHIN THE BOUNDARIES OF JUNIPER POINT PARCEL ONE.

THEY HAD A LARGER TRACT THAT WAS RESERVED FOR FUTURE DEVELOPMENT.

SO PARCEL TWO IS 17.54 ACRES, WHICH IS PART OF THAT LARGER SUBDIVISION.

IT'S RR ZONE 62 SINGLE FAMILY LOTS.

IT HAS THE RESOURCE PROTECTION OVERLAY, HAS THE STEEP SLOPES AND FOREST RESOURCES ARE SET ASIDE TO BE PROTECTIVE.

THE PLAT ITSELF DOES NOT HAVE THE OVERALL LAND TO SET IT, SO WE'RE GOING TO FIX THAT ON THE FINAL PLAT THAT'S GOING TO HAVE THE LAND INCLUDED ON THE PLAT FOR THE RESOURCE PROTECTION. SO HERE'S A BRIEF OVERVIEW OF THE PLAT.

IT WAS IN THE ATTACHMENTS AND ALSO THE STAFF REPORT.

I'LL LEAVE IT HERE FOR A SECOND FOR YOU TO LOOK AT.

AS YOU CAN SEE IT'S GOING TO COME OFF J.W.P.

RIGHT HERE FROM ROCK POINT.

PARCEL ONE IS SOUTH.

WELL JUST SOUTH OF HERE.

RIGHT HERE. AND THEN OVER HERE.

THESE ARE GOING TO BE THE 62 LOTS.

SO THERE ARE THREE FINDINGS THAT YOU HAVE TO MEET.

THE FIRST ONE IS THAT IT MEETS ALL THE STANDARDS OF THE ZONING CODE.

SO IT MEETS THEY'RE DOING THE PLANNED RESIDENTIAL DEVELOPMENT STANDARDS.

SO THEIR GROSS DENSITY RIGHT NOW IS 3.53 UNITS AN ACRE JUST ON PARCEL TWO.

SO THE PRD IS THE CLUSTERING, WHICH ALLOWS YOU TO CLUSTER YOUR DENSITY AND THEN SAY PUT ASIDE LAND IN ANOTHER LOCATION FOR RESOURCES AND FOR OPEN SPACE. SO THE ADDITIONAL LAND IS SET ASIDE.

IT'S PART OF THAT PARCEL ONE SUBDIVISION.

AND ON THEIR FINAL PLAT, THEY'RE GOING TO HAVE THAT LAND AS WELL.

SO FOR THE LOT DESIGN, IT'S THE PRD ALLOWS FOR THE SMALLER LOT.

SO THEY'RE GOING TO BE SMALLER THAN AN ACRE.

AND THEY'RE USING THE T THREE AND TWO TRANSECT ZONE STANDARDS.

SINGLE FAMILY HOUSE TYPE, A FEW DIFFERENT PORCH TYPES.

IT'S GOING TO HAVE SOME REDUCED SETBACKS.

IT DOES MEET THE RESOURCE PROTECTION STANDARDS ON THE OVERALL SITE.

I'LL SHOW YOU THAT HERE ON THE NEXT PAGE.

SO RIGHT HERE IS PARCEL TWO ITSELF.

THEY ARE GOING TO BE REMOVING A LOT OF THE RESOURCES ON THAT SITE, BUT THE LARGER OVERALL DEVELOPMENT SITE HAS A LOT OF TREES AND STEEP SLOPES THAT ARE GOING TO BE SAVED IN THE FUTURE. SO THE OTHER RELEVANT STANDARDS FROM THE ZONING CODE ARE HISTORIC AND CULTURAL RESOURCES.

THERE WAS A CULTURAL RESOURCE STUDY FROM 2006, AND THIS WAS APPROVED BY THE HERITAGE PRESERVATION OFFICER.

THERE'S GOING TO BE A PROPOSED CONNECTION TO THE BOW AND ARROW WASH RAIL TRAIL THROUGH PARCEL THREE AND THE ENTIRE DEVELOPMENT, AND THIS PLAT CONTAINS TRACKS THAT ARE SET ASIDE FOR OPEN AND CIVIC SPACE.

NUMBERS ARE NOT PERFECTLY CALIBRATED.

[01:05:02]

IT'S GOING TO BE FIXED ON THE FINAL PLAT.

SO FINDING TWO IS THAT IT MEETS THE ENGINEERING STANDARDS.

A PUBLIC SYSTEMS ANALYSIS WAS CONDUCTED, AND THERE'S COMPLIANCE CONFIRMED WITH THE CIVIL ENGINEERING PLANS WHICH ARE IN REVIEW RIGHT NOW.

ACCESS AND TRAFFIC.

THERE'S A MASTER TIA FOR THE WHOLE 325 ACRE DEVELOPMENT SITE.

TRAFFIC STATEMENT WAS PROVIDED JUST FOR PARCELS ONE THROUGH THREE, AND THAT WAS APPROVED.

WHO? THERE WE GO.

SO WATER AND WASTEWATER.

THERE'S A NEW EIGHT INCH AND 12 INCH WATER LINE.

EIGHT INCH SEWER LINE.

PRELIMINARY DRAINAGE REPORT FOR PHASE ONE, WHICH PASSES ONE THROUGH THREE, WAS PREPARED 2023 MARCH 7TH AND REVIEWED BY STAFF AND APPROVED.

FINDING THREE IS THAT IT MEETS THE SUBDIVISION STANDARDS.

SO THERE'S THE PROCEDURES AND THE APPLICATION REQUIREMENTS, THE MINIMUM REQUIRED SUBDIVISION IMPROVEMENTS, WHICH ARE THE PUBLIC SYSTEMS ANALYSIS FROM PREVIOUS SLIDES AND LOT DESIGN, STREET DESIGN, EASEMENT AND BLOCK DESIGN ARE ALL MET ON THIS.

SO IT'S THE RECOMMENDATION THAT THE CITY COUNCIL, BASED ON THE FINDINGS AND THE RECOMMENDATION OF THE PLANNING AND ZONING COMMISSION, SIX ZERO, APPROVES THE PRELIMINARY PLAT WITH THE FOLLOWING CONDITIONS.

THAT THE FINAL PLAT.

ADJUST THE BOUNDARIES OF THE PLAT TO INCLUDE THE REMAINDER OF JUNIPER POINT, PARCEL ONE, TRACT G, AND THAT THE FINAL PLAT AND ENGINEERING PLAN SHALL ADJUST THE PLAT BOUNDARIES TO INCLUDE ALL AREAS THAT ARE BEING UTILIZED FOR RESOURCE PROTECTION CALCULATIONS.

THANK YOU. THANK YOU.

ALL RIGHT, COUNCIL, ANY QUESTIONS? IF NOT, THEN I WILL TAKE A MOTION.

GO AHEAD. MAYOR, I MOVE THAT WE APPROVE THE PLAT.

ITEM EIGHT C WITH THE LISTED CONDITIONS.

THANK YOU. THANK YOU.

IS THERE A SECOND? I'LL SECOND. THANK YOU.

ANY DISCUSSION? ALL THOSE IN FAVOR? AYE AYE AYE. ANY OPPOSED? ALL RIGHT.

THANK YOU. MAYOR. THANK YOU.

OKAY. MOVING DOWN TO THE REGULAR AGENDA.

NINE A CONSIDERATION AND ADOPTION OF RESOLUTION NUMBER 2024 DASH 17.

[A. Consideration and Adoption of Resolution No. 2024-17: A resolution approving the City of Flagstaff's 2024 Annual Action Plan and authorizing its submission to the U.S. Department of Housing and Urban Development (HUD) STAFF RECOMMENDED ACTION: Read Resolution No. 2024-17 by title only City Clerk reads Resolution No. 2024-17 (if approved above) Adopt Resolution No. 2024-17]

THIS IS A RESOLUTION APPROVING THE CITY OF FLAGSTAFF'S 2024 ANNUAL ACTION PLAN AND AUTHORIZING ITS SUBMISSION TO THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

WELCOME.

ALL RIGHT. ONE SECOND.

I JUST HAVE TO LOG INTO MY COMPUTER REALLY QUICKLY.

GOOD AFTERNOON, EVERYBODY.

MAYOR, VICE MAYOR, COUNCIL STAFF AND OUR COMMUNITY MEMBERS.

THANKS FOR HAVING ME TODAY AS WE CONTINUE OUR CONVERSATION ABOUT OUR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND THE 2024 ANNUAL ACTION PLAN THIS AFTERNOON, WE'RE HERE TO PRESENT UPDATED RECOMMENDATIONS FOR THE USE OF CDBG FUNDS AND TO REQUEST A RESOLUTION APPROVING THE SUBMISSION OF OUR ANNUAL ACTION PLAN TO HUD.

QUICKLY. I JUST WANT TO REVIEW THE FUNDS WE HAVE AVAILABLE.

EXCUSE ME. CHRISTINE.

IT LOOKS LIKE WE ALREADY HAVE A QUESTION.

YES. MY QUESTION IS FOR THE CITY CLERK.

CAN WE GET THE PRESENTATION PUT ON OUR TEAM SCREEN? THANK YOU. I THOUGHT IT WAS JUST ME.

THAT OKAY? THANK YOU. THAT WORKS.

THANK YOU. SO I JUST WANT TO QUICKLY REVIEW THE FUNDS WE HAVE AVAILABLE.

THE NUMBERS HAVE CHANGED JUST A LITTLE BIT IN THE WEEKS SINCE WE WERE LAST HERE.

HUD HAS OFFICIALLY RELEASED THE ENTITLEMENT ALLOCATIONS FOR THIS YEAR.

YOU'LL REMEMBER WE ESTIMATED ABOUT $535,000 AS AN AVERAGE BASED ON OUR LAST TWO YEARS OF ALLOCATIONS.

HOWEVER, THIS YEAR OUR AWARD HAS INCREASED TO $588,146.

AND WHILE WE'D LOVE TO TAKE CREDIT FOR THAT INCREASE, THE AMOUNT IS BASED JUST ON A FORMULA YOU'LL REMEMBER FROM MY LAST PRESENTATION.

AND IT'S NOT SOMETHING WE HAVE ANY INFLUENCE OVER.

HOWEVER, WE'RE VERY GRATEFUL TO HAVE THESE ADDITIONAL FUNDS TO SUPPORT OUR COMMUNITY, AND WE'RE ABLE TO ADD TO THIS ALLOCATION AMOUNT WITH PROGRAM INCOME, WHICH YOU'LL REMEMBER, OUR FUNDS FROM LOANS PAID BACK TO THE CITY FROM PAST REHABILITATION AND DOWN PAYMENT ASSISTANCE PROGRAMS, AS WELL AS A REALLOCATION OF THE OBLIGATED FUNDS.

THESE FUNDS ARE FROM A PAST YEAR ALLOCATION.

THIS YEAR, IT'S FROM THE BOYS AND GIRLS CLUB, AS WELL AS FUNDS FROM THE OWNER OCCUPIED HOUSING REHAB PROGRAM CARRIED OUT BY HOUSING SOLUTIONS.

[01:10:06]

SO WE ARE REPROGRAMING THOSE FUNDS BACK INTO THIS YEAR.

THIS MEANS WE HAVE $775,459 FOR THE PROGRAM YEAR 2024 ALLOCATIONS.

YOU CAN SEE HERE THE SPENDING CAPS ON HOW THESE FUNDS CAN BE USED.

HUD REQUIRES THAT JUST 20% OF THE FUNDING BE SPENT ON ADMINISTRATIVE ACTIVITIES AND INDIRECT COSTS, AND THEN WE'RE ABLE TO USE 15% OF THE FUNDS FOR PUBLIC SERVICE PROJECTS.

AND THESE ARE PROJECTS THAT PROVIDE DIRECT BENEFIT TO CLIENTS.

AND CDBG IS USED TO PAY FOR THINGS LIKE OPERATIONAL EXPENSES OR PROGRAMMATIC COSTS.

THEN THE REMAINDER OF THE FUNDS MUST BE SPENT ON HOUSING, INFRASTRUCTURE, NEIGHBORHOOD REVITALIZATION, OR PUBLIC FACILITY IMPROVEMENT ACTIVITIES.

THIS SLIDE SHOWS THE UPDATED RECOMMENDATIONS.

YOU'LL SEE THAT THE RECOMMENDED AMOUNTS HAVE CHANGED SLIGHTLY BASED ON THE INCREASE IN FUNDS THAT WE HAVE AVAILABLE.

BASED ON YOUR DIRECTION, AT THE APRIL 9TH MEETING, HOUSING STAFF WORKED TO IDENTIFY AN ALTERNATIVE PROJECT FOR THIS YEAR'S HOUSING ACTIVITY FUNDS.

WE ARE PROPOSING THAT THE HOUSING ACTIVITY FUNDS BE SPLIT HALF FOR FLAGSTAFF SHELTER SERVICES FOR IMPROVEMENTS NEEDED FOR HEALTH AND SAFETY AT THE LANTERN, THEIR NEW RECENTLY PURCHASED HOTEL AND HALF TO AID IN THE ACQUISITIONS OF TWO AFFORDABLE RENTAL UNITS TO BE ACQUIRED BY HOUSING SOLUTIONS OF NORTHERN ARIZONA.

THESE RECOMMENDATIONS INCLUDE TAKING SLIGHTLY LESS THAN THE MAXIMUM AMOUNT FOR ADMINISTRATION, WHICH IS ABOUT $134,000 AND A LITTLE LESS THAN THE ALLOWABLE AMOUNT FOR PUBLIC SERVICES, WHICH IS THEN SPLIT BETWEEN COCONINO COUNTY HEALTH AND HUMAN SERVICES COMMUNITY ASSISTANCE TEAMS OF FLAGSTAFF AND THE BOYS AND GIRLS CLUB.

THESE FUNDS, AGAIN, ARE ALL FOR PROGRAMMATIC OR OPERATIONAL COSTS FOR PUBLIC SERVICES THAT THAT MEET BASIC HUMAN NEEDS LIKE CHILD CARE ASSISTANCE, SENIOR NUTRITION PROGRAMS AND RESOURCES FOR INDIVIDUALS EXPERIENCING HOMELESSNESS.

YOU CAN SEE AS WELL THAT WE HAVE REMOVED ANY RECOMMENDED FUNDING FOR THE ACQUISITION OF REAL PROPERTY BY CATS OF FLAGSTAFF.

IN RESPONSE TO YOUR DIRECTION, AND WE ARE HERE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE ABOUT THESE UPDATED RECOMMENDATIONS.

WE ALSO HAVE SOME OF OUR NONPROFIT PARTNERS.

NOT EVERYBODY WAS ABLE TO MAKE IT, BUT SOME OF THEM ARE HERE IN CASE YOU HAVE QUESTIONS FOR THEM BEYOND WHAT I CAN ANSWER.

AND THEN AGAIN, WE ARE HOPEFUL TO WE'RE SEEKING YOUR APPROVAL OF A RESOLUTION AUTHORIZING THE SUBMISSION OF THIS ANNUAL ACTION PLAN TO HUD.

THIS IS NOW COMING DUE BECAUSE WE HAVE RECEIVED THOSE FINAL ALLOCATION AMOUNTS.

TYPICALLY IT'S DUE MAY 15TH.

WE GOT AN EXTENSION BECAUSE IT TOOK CONGRESS AND HUD SO LONG TO GET THOSE FORMULA ALLOCATIONS OUT.

SO THANK YOU, CHRISTINE.

COUNCIL MEMBER MCCARTHY.

THANK YOU. MAYOR. COULD YOU GO BACK TO THE LAST SLIDE? SO I SEE SAFETY IMPROVEMENTS FOR THE LANTERN.

THAT'S GOING TO HELP A LOT OF PEOPLE.

BUT THE NEXT ONE ACQUISITION OF TWO AFFORDABLE RENTAL UNITS, THAT'S ONLY GOING TO HELP TWO FAMILIES.

AND I JUST KIND OF WONDER IF.

IF THAT'S THE BEST USE OF OUR FUNDS.

THE OTHER COUNCIL MEMBERS HAVE ANY THOUGHTS IN THAT REGARD, OR DO YOU AS STAFF HAVE ANY THOUGHTS IN THAT REGARD? I'M NOT SAYING I'M AGAINST IT, BUT I AT LEAST WANT TO HAVE A DISCUSSION ABOUT IT.

ABSOLUTELY. I THINK IT'S A GREAT QUESTION, AND I THINK THAT BOTH HAVE VALUE AND I THINK BOTH ARE IMPORTANT.

ONE OF THE BIGGEST THINGS TO REMEMBER IS THAT FLAGSTAFF SHELTER SERVICES IS ABLE TO COMPLETE THEIR PROJECT WITH THIS FUNDING.

THEY'LL ALSO BE USING FUNDING THAT WAS ALLOCATED IN A PAST YEAR FOR KITCHENETTES.

INSTEAD, THEY WILL USE THAT FUNDING FOR THESE MORE URGENT NEEDS.

I THINK THAT IT IS IMPORTANT TO REMEMBER THAT PROVIDING PERMANENT, AFFORDABLE RENTAL UNITS IS IS ALSO REALLY CRUCIAL.

I KNOW IT'S HARD TO COMPARE THE NUMBERS TO VERSUS YOU KNOW, POTENTIALLY A THOUSAND INDIVIDUALS A YEAR, 300 TO 1000 INDIVIDUALS A YEAR, DEPENDING ON WHICH PROGRAM.

FLAG SHELTER IS PUTTING THEM IN.

BUT I THINK THEY, THEY EQUALLY HAVE VALUE IN.

AND AS FAR AS DISTRIBUTING THE FUNDS, IT'S TOTALLY YOUR YOUR GUIDANCE COUNCIL.

I JUST ASK IF ANY OTHER COUNCIL MEMBERS HAVE COMMENTS.

THANK YOU, COUNCIL MEMBER HARRIS.

I GUESS I'M ON THE SAME PAGE AS COUNCIL MEMBER MCCARTHY.

BUT MINE IS A LITTLE BIT, I THINK, MAYBE A LITTLE DIFFERENT.

I'M CONCERNED ABOUT THE TWO UNITS.

AND WHILE I AGREE THAT SOMETHING IS BETTER THAN NOTHING I WANT TO KNOW HOW THOSE UNITS ARE, HOW THE PEOPLE WHO ARE MOVING INTO THOSE UNITS ARE SELECTED. AND IF IT IS A FAIR PROCESS AND IT'S NOT IT'S NOT JUST WE PUT IT OUT ON OUR WEBSITE.

AND SO THEN FIRST COME, FIRST SERVE.

[01:15:02]

I'D LIKE TO KNOW A LITTLE BIT MORE ABOUT HOW WE LOOK AT THOSE FUNDS.

HOW DO WE LOOK AT HOW THOSE FUNDS ARE BEING MANAGED AND MAKING SURE THAT ALL OF OUR COMMUNITY WHO ARE IN NEED HAVE AN OPPORTUNITY TO VIE FOR THOSE TWO APARTMENTS OR HOUSING OR WHATEVER THEY ARE.

THANK YOU. SO.

HOUSING SOLUTIONS OF NORTHERN ARIZONA IS A HUD APPROVED HOUSING COUNSELING AGENCY.

THEY FOLLOW ALL FAIR HOUSING LAWS.

AND THEN THEY ALSO HAVE RESPONDED TO QUESTIONS ON OUR RECENT APPLICATIONS WITHIN THE LAST TWO YEARS INDICATING THAT THEY HAVE POLICIES IN PLACE FOR DIVERSITY, EQUITY AND INCLUSION MAKING SURE THAT ALL OF THEIR STAFF ARE TRAINED IN EQUITY AND AND EQUALITY AND FAIR AND FAIR HOUSING GUIDELINES.

AND SO I THINK THAT THEY ARE AN EXCELLENT ORGANIZATION TO BE GOING THROUGH THE PROCESS OF FINDING TENANTS FOR THEIR PROGRAMS. THEY'RE ALSO A HUGE PARTICIPANT IN THE FRONT DOOR.

NOW, I DON'T KNOW THAT THESE TWO UNITS, THEIR REFERRALS ARE TAKEN FROM THE FRONT DOOR, BUT I KNOW THAT FOR HOUSING SOLUTIONS, BOTH JOJO'S PLACE AND SHARON MANOR, ALL OF THEIR REFERRALS ARE TAKEN THROUGH THE FRONT DOOR, WHICH, AS YOU KNOW, IS A GREAT WAY FOR OUR CITY TO HANDLE FOLKS COMING IN INTO OUR HOUSING PROGRAMS BECAUSE IT CREATES JUST ONE LIST.

SO YOU DON'T HAVE FOLKS COMPETING BY GETTING ON ONE LIST OR THE OTHER.

THAT DOESN'T ANSWER MY QUESTION, THAT THAT'S NOT SATISFACTORY.

SO I DON'T KNOW WHERE WE GO FROM HERE.

I'M NOT GOING TO STOP THIS, BUT I JUST WANT YOU TO KNOW THAT ANSWER DOES NOT SATISFY ME.

SO THANK YOU.

CITY MANAGER.

THANK YOU. I'M ONLY WEIGHING IN HERE BECAUSE I HAD THE OPPORTUNITY TO READ AN EMAIL FROM DEVON MCLAUGHLIN EARLIER THIS AFTERNOON.

SHE CANNOT BE HERE.

I THINK SHE HAS A CHILD GRADUATING.

A YOUNG ADULT CHILD.

BUT IN HER EMAIL.

AND I THINK COUNCIL MEMBER HARRIS, THIS IS TO YOUR QUESTION, I'M JUST GOING TO READ IT VERBATIM, IF I MAY.

THIS IS EXCERPTED OUT OF HER EMAIL.

WE HAVE IDENTIFIED RENTERS WHO EARN LESS THAN 80% OF THE AREA MEDIAN INCOME FOR BOTH UNITS AND ARE WORKING TO MOVE FOLKS INTO THE APARTMENTS, ENSURING THEY HAVE DECENT AND AFFORDABLE HOUSING.

THERE'S A LITTLE BIT MORE ELABORATION WITHIN THE THE TEXT OF THAT EMAIL, BUT I WANTED TO REFERENCE THAT FOR YOU.

THANK YOU. AND THANK YOU, CITY MANAGER.

I DID READ HER EMAIL AND I'M GOING TO REPEAT THAT STILL DOESN'T SATISFY ME.

I WANT TO KNOW.

OF THE 80 PEOPLE WHO WERE MAKING 80 LOW BELOW 80% OF INCOME.

I WANT TO KNOW HOW WHAT THAT POOL LOOKS LIKE IN TERMS OF DIVERSIFICATION.

AND I'M SPEAKING SPECIFICALLY ABOUT ETHNIC DIVERSIFICATION.

SO YOU CAN HAVE 20 PEOPLE IN THAT POOL, ARE ALL 20 OF THEM FROM THE SAME ETHNIC GROUP OR ARE THEY FROM A DIVERSE GROUP? AND THEN YOU SELECT FROM THAT.

THAT'S WHAT I WANT TO KNOW.

AND THAT'S NOT THE ANSWER THAT I'M GETTING.

SO AND I'M NOT TRYING TO BE DIFFICULT.

I'M JUST TRYING TO I'M TRYING TO EXPRESS MY CONCERN.

WELL STATED, AND WE CAN APPROACH THIS A NUMBER OF WAYS.

I THINK SARAH MIGHT BE ABLE TO SPEAK TO THIS TOO, BUT WE COULD APPROVE THE FUNDING, RECOGNIZING THAT WE'RE BUMPING UP AGAINST SOME DEADLINES AND HAVE A PRESENTATION COME BACK TO YOU WHEN HOUSING SOLUTIONS IS AVAILABLE TO SPEAK SPECIFICALLY TO THE QUESTION ABOUT DIVERSITY.

I APPRECIATE THE QUESTION.

THANK YOU. MAYOR.

MEMBERS OF COUNCIL. COUNCIL MEMBER.

HARRIS, THANK YOU FOR THE QUESTION.

I'M HOPING WE'RE UNDERSTANDING IT AT THIS POINT IN TIME.

I'M NOT GOING TO SPEAK ON BEHALF OF HOUSING SOLUTIONS OF NORTHERN ARIZONA.

I'M NOT EQUIPPED TO DO THAT, BUT I CAN RELAY THAT.

OVERSEEING RENTAL HOUSING PROGRAMS VIA OUR HOUSING AUTHORITY, WE ARE UNABLE TO TARGET SPECIFIC INDIVIDUALS BECAUSE OF FAIR HOUSING REGULATIONS. AND SO WE CANNOT SPECIFICALLY SELECT BASED ON RACE, CREED, RELIGION, NATIONAL ORIGIN, FAMILIAL STATUS. I'M MISSING TWO.

OKAY. I'M GOING TO STOP YOU RIGHT THERE.

AND I DON'T MEAN TO BE DISRESPECTFUL.

I TOTALLY UNDERSTAND THAT.

AND I KNOW THE GUIDELINES.

THAT'S NOT WHAT I'M ASKING.

WHAT I'M ASKING IS THAT.

ARE YOU OR ARE THEY MAKING SURE THAT THEY ARE GETTING THAT INFORMATION OUT TO ALL POPULATIONS SO THAT ALL POPULATIONS HAVE AN OPPORTUNITY TO VIE FOR THOSE APARTMENTS? I'M NOT ASKING YOU TO, YOU KNOW, TO IDENTIFY PEOPLE BASED ON ETHNICITY.

I'M ASKING YOU, ARE YOU GOING TO WHERE THOSE FOLKS ARE AND MAKING SURE THAT THAT INFORMATION IS GETTING TO THEM?

[01:20:07]

THAT'S WHAT I'M ASKING.

AND HOW ARE WE ASSURED THAT THAT IS HAPPENING? THANK YOU. COUNCIL MEMBER I APOLOGIZE FOR NOT UNDERSTANDING THE QUESTION.

I WAS JUST HANDED A TEXT MESSAGE FROM DEVONA.

SO SHE'S NOT HERE, BUT SHE'S LISTENING.

IT SAYS I'M GOING TO READ IT VERBATIM.

TENANT SELECTION FOR CDBG FUNDED UNITS.

WE FIRST LOOK AT EXISTING TENANTS IN OUR TRANSITIONAL HOUSING UNITS TO SEE IF THEY'RE ELIGIBLE TO MOVE INTO A PERMANENT UNIT BASED ON HOUSEHOLD SIZE, INCOME, ETC.

THE FIRST TWO UNITS WILL BE LEASED TO SHARON MANOR TENANTS TRANSITIONING TO PERMANENT HOUSING.

SO TO PIGGYBACK OFF OF COUNCIL MEMBER MCCARTHY'S QUESTION IS THAT PERMANENT HOUSING IS THE SOLUTION TO HOMELESSNESS OVERALL, BEING ABLE TO HAVE A SPOT FOR FOLKS WITHIN TRANSITIONAL HOUSING TO MOVE INTO PERMANENT HOUSING IS A CRITICAL STEP WITHIN THAT HOUSING CONTINUUM.

THAT IS HER RESPONSE.

I'M GUESSING YOU DESIRE ADDITIONAL INFORMATION.

I CAN TELL YOU ON THEIR CDBG CONTRACTS IN THE PAST WHERE WE HAVE GONE AND MONITORED WE HAVE FOUND THEIR OUTREACH AND PUBLICITY METHODS IN LINE WITH WHAT'S REQUIRED WITH CDBG AND ALSO TO BE COMPREHENSIVE WITHIN THE COMMUNITY.

BUT WE WILL GET ADDITIONAL INFORMATION FROM HOUSING SOLUTIONS OF NORTHERN ARIZONA SHOULD YOU CHOOSE TO MOVE FORWARD WITH THIS FUNDING THIS EVENING.

AND CAN I? AS I SAID, I'M NOT GOING TO HOLD THIS UP, BUT I REALLY WANT THIS ON THE RECORD THAT I'VE BEEN ASKING THIS QUESTION FOR ALMOST 18 MONTHS NOW, AND I'M NOT GETTING A SATISFACTORY ANSWER.

I'M VERY WELL AWARE OF WHAT THE HUD GUIDELINES ARE IN REGARDS OF HOW YOU SELECT PEOPLE.

YOU CAN'T LOOK AT RACE, AND I KNOW THAT.

I TOTALLY UNDERSTAND THAT.

BUT WHAT I'M SAYING IS THAT IF IF THE ONLY PEOPLE THAT ARE IN MY TRANSITIONAL HOUSING OR IN MY SHARON MANOR.

IF IF THEY'RE ALL OF ONE BACKGROUND, THEN THAT DOESN'T HELP THE OTHER FOLKS THAT MAY BE IN THAT SIMILAR SITUATION.

THAT'S NOT A PART OF SHARON MANOR.

DO YOU UNDERSTAND WHAT I'M WHERE I'M COMING FROM? DOES THAT MAKE SENSE? IT DOES MAKE SENSE.

I CAN TELL YOU THE THE MECHANISMS WITHIN OUR COMMUNITY WHERE PEOPLE CAN ENTER INTO OUR HOUSING PROGRAMS ARE BROAD.

AND THAT'S PART OF THE FUNCTION OF THE FRONT DOOR IS SO THAT IT REACHES A GREATER, A GREATER GROUP OF FOLKS NEEDING SERVICE.

I THINK I WOULD APPRECIATE THE OPPORTUNITY TO SIT DOWN WITH YOU, AND IF YOU'RE WILLING TO, SO THAT WE CAN BETTER UNDERSTAND THE INTRICACIES OF YOUR QUESTION AND ALSO HELP EXPLAIN IN MORE DETAIL HOW BROAD THOSE NETS ARE.

AND AND SO WE'RE GOING TO JUST GO A LITTLE BIT FURTHER HERE.

AND SO I'M GOING TO STEP OUT THERE.

WE KNOW THAT SYSTEMS ARE SET UP.

AND WHEN SOMETIMES WHEN SYSTEMS ARE SET UP, THEY ARE INHERENTLY RACIST OKAY.

SO WE KNOW THAT THERE'S DATA OUT THERE THAT TELLS US THAT THERE'S PROOF OUT THERE.

AND SO THAT'S THE QUESTION THAT I'M ANSWERING THAT I'M ASKING OKAY.

AND SO.

I'M NOT SAYING THAT FLAGSTAFF IS A RACIST COMMUNITY OR CITY, SO I DON'T WANT PEOPLE WALKING OUT OF HERE THINKING THAT OR SAYING THAT'S WHAT COUNCIL MEMBER HARRIS SAID.

BUT I KNOW THAT SYSTEMS, WHEN WE SET THEM UP BECAUSE OF WHO WE ARE, WE HAVE TO ENSURE THAT WE'RE ACCOUNTING FOR THAT INSTITUTIONALISM THAT THAT HAPPENS.

OKAY. AND SO LIKE I SAID, I'M NOT GOING TO HOLD THIS UP, BUT I WANT US TO THINK ABOUT THAT.

MORE BROADLY, JUST OKAY, WE SET THIS PROCESS UP.

AND SO WHOEVER GETS IN GETS IN.

THAT'S THAT'S NOT SATISFACTORY FOR OUR CITY.

YEAH. FOR THAT ADDITIONAL CLARIFICATION.

EQUITY AND INCLUSION ARE A CORNERSTONE TO OUR PROGRAMS. THEY ARE CORNERSTONE TO THE TEN YEAR PLAN AND HAVE BEEN FOREFRONT WE'RE FOREFRONT WHEN WE WERE DESIGNING THE FRONT DOOR PROCESS FOR OUR COMMUNITY SO THAT WE ARE LOOKING AT THE DIFFERENT PIECES AND WORKING TO THE GREATEST EXTENT, WE'RE ABLE TO TO ENSURE THAT WE'RE NOT BUILDING IN SYSTEMIC DISCRIMINATION.

WE WORK WITH MANY OF OUR COMMUNITY PARTNERS IN ORDER TO MAKE SURE THAT WHEN WE WE EVEN STEP BACK AND LOOK AT SOMETHING AND WE'RE LIKE, OKAY, WHAT ARE WE MISSING? AND WHO MIGHT BE EXCLUDED FROM THIS? AND IF THERE'S AN ONLINE APPLICATION, HOW DO WE ENSURE FOLKS WITHOUT ACCESS TO TECHNOLOGY ARE ABLE TO? WE DO HAVE THOSE CONVERSATIONS ON AN ONGOING BASIS.

AND WE'LL GET YOU ADDITIONAL INFORMATION FROM HOUSING SOLUTIONS.

[01:25:02]

THANK YOU. COUNCIL MEMBER HOUSE.

THANK YOU, MAYOR. THANK YOU FOR THE PRESENTATION.

AND I'M REALLY SPEAKING BACK TO COUNCIL MEMBER MCCARTHY'S COMMENT.

I GUESS I'LL START WITH A QUESTION.

SO IN WHAT'S PRESENTED HERE FOR FLAGSTAFF SHELTER SERVICES, YOU YOU DID SAY THAT THAT MEETS THE NEED.

CORRECT. THAT'S THE PROGRAM OR THE PROGRAMMATIC FUNDING THAT'S THAT'S NEEDED FOR THAT VERSUS THE HOUSING SOLUTIONS OF NORTHERN ARIZONA FUNDING, WHICH IS.

I DON'T KNOW IF YOU SPECIFIED IF THAT FULLY MEETS THE NEED OR IF IT'S MORE SUPPORTING, BUT THAT'S KIND OF WHERE I SEE THE THE DIFFERENCE BETWEEN THOSE TWO FUNDING PROGRAMS. EVEN THOUGH IT'S THE SAME AMOUNT OF MONEY, IT'S MEETING THOSE DIFFERENT NEEDS.

AM I CORRECT ON THAT? YES. SO IT'S KIND OF TRICKY BECAUSE THESE ORGANIZATIONS DIDN'T REQUEST FUNDING, SO THERE WASN'T AN OUTLINE OF EXACTLY WHAT THEY NEEDED.

HOWEVER, I KNOW FROM CONVERSATIONS WITH HOUSING SOLUTIONS OF NORTHERN ARIZONA THEY SO THEY DID THIS SAME PROJECT.

THEY PURCHASED TWO AFFORDABLE RENTAL UNITS WITH FUNDS FROM LAST YEAR.

THEY USED $250,000 AND THAT HELPED AS A DOWN PAYMENT ON THE UNITS.

SO THEY USED PRIVATE MORTGAGE FINANCING TO COMPLETE THOSE PURCHASES.

THE PRICE POINT FOR THOSE UNITS HAS GONE UP QUITE A BIT OVER THE LAST TWO YEARS.

AND SO THE ADDITIONAL FUNDS MAKE IT TO WHERE IT'S AFFORDABLE AT THE SAME RATE.

THE LAST TIME THEY DID THIS PROJECT WAS AS FAR AS FLAGSTAFF SHELTER SERVICES GOES.

MY UNDERSTANDING IS THAT THE IMPROVEMENTS THAT THEY'RE LOOKING AT ARE A TON, AND, AND THEY NEED TO FUNDRAISE AS MUCH AS THEY CAN.

HOWEVER THE CDBG FUNDS WERE NOT LIKE A SURPRISE, BUT LIKE, OH, GREAT, THAT WILL BE INCREDIBLY HELPFUL.

WE DEFINITELY NEED THOSE.

WE WERE PLANNING ON ASKING FOR THEM NEXT YEAR, BUT THERE WASN'T LIKE A WE NEED THIS MUCH OR IT CAN'T GO FORWARD.

SO I DON'T KNOW IF ROSS FROM SHELTER SERVICES WAS ABLE TO JOIN US OR NOT.

SHE MIGHT BE ABLE TO ANSWER THAT QUESTION BETTER.

BUT MY UNDERSTANDING IS THAT THE FUNDS ARE ARE WELCOME, AND THAT IT WAS BETWEEN 200 AND 300,000 THAT THEY EXPECTED TO RECEIVE IF THIS WENT FORWARD.

THAT WAS THE BALLPARK I GAVE THEM WHEN I WAS IN DISCUSSIONS WITH THEM.

OKAY. THANK YOU.

SO YEAH, I THINK IN THE ALLOCATIONS THAT I'M SEEING NOW, I DO FEEL VERY SUPPORTIVE OF THE WAY THIS IS BEING BROKEN UP.

AND JUST TO SPEAK TO COUNCIL MEMBER HARRIS'S COMMENTS, I THINK PART OF THE CONVERSATION WOULD ALSO BE ABOUT THE DISTINCTIONS OF DISPARATE IMPACT IN POLICIES AND HOW THAT'S, THAT'S FOLDED IN.

I THINK THAT WOULD BE A HELPFUL FRAMING FOR SOME OF THE CONVERSATION AS WELL.

THE ONLY OTHER QUESTION I HAD THEN WAS IN THE ALLOCATIONS UNDER PUBLIC SERVICES.

I'M SEEING THE AMOUNT FOR COCONINO COUNTY HEALTH AND HUMAN SERVICES.

THE RECOMMENDED AMOUNT EXCEEDS THE FUNDING REQUEST.

AND I'M HONESTLY JUST TRYING TO REMEMBER, IS THIS THE SAME BREAKDOWN AS AS LAST TIME, OR WAS THERE SOME FLEXING THERE? THERE WAS SOME FLEXING BECAUSE WE ENDED UP WITH ADDITIONAL FUNDING.

SO WE WHEN WE FIRST CAME, WE WERE USING THAT ESTIMATED AMOUNT AND WE HAD ABOUT $94,000 TO AWARD.

WHEN WE PRESENTED THAT, WE STATED THAT IF OUR ALLOCATION WERE TO BE MORE, WHAT WE WOULD DO IS, IS GIVE EACH EACH APPLICANT AN INCREASE IN AN EQUAL PERCENTAGE BASED ON THAT INCREASE.

SO THAT'S WHAT I'VE DONE HERE. YOU COULD CERTAINLY ONLY AWARD THEM WHAT THEY'VE REQUESTED.

THAT'S ABSOLUTELY AN OPTION.

BUT BECAUSE THAT IS WHAT WE SAID WE WOULD DO WHEN WE PRESENTED TO YOU ON APRIL 9TH, IT FELT LIKE WHAT WAS PRESENTED TO THE COMMUNITY WAS THIS.

ALL RIGHT. THANK YOU. THAT'S HELPFUL.

ONE THING I WOULD JUST LIKE TO I MEAN, I'M NOT POINTING OUT SOME KIND OF SHOCKING NEWS, BUT THE TWO AFFORDABLE RENTAL UNITS.

THAT'S TWO FAMILIES NOW, BUT IT'S AFFORDABLE IN PERPETUITY, SO WE REALLY DON'T KNOW THE NUMBER OF FAMILIES IT IS.

ONCE WE GET TO THE END LIFE CYCLE OF AND THEIR HOMES.

RIGHT. THEIR HOUSES, THEY'RE NOT APARTMENTS.

CORRECT. CONDOS. SO THEY ARE KIND OF HOUSES.

AND ONE OTHER THING TO TO MAKE SURE THAT YOU KNOW ABOUT IS THAT THESE ARE DEED RESTRICTED UNITS THAT HOUSING SOLUTIONS IS PURCHASING.

SO EVEN THOUGH THEIR REQUIREMENT FOR CDBG FUNDS IS TO USE THE CONDOS FOR THIS PURPOSE FOR THE NEXT TEN YEARS, THEY ARE ACTUALLY DEED RESTRICTED TO BE USED FOR AFFORDABLE

[01:30:05]

RENTALS FOREVER, AND THAT IF HOUSING SOLUTIONS CHOSE TO SELL THEM, THEY WOULD BE SOLD UNDER OUR AFFORDABLE HOUSING PROGRAM.

SO THIS IS HAVING TWO UNITS FROM THOSE DEED RESTRICTED ONES REQUIRED BY THE DEVELOPMENT AGREEMENT BEING BUILT, BEING BOUGHT AND BEING UTILIZED.

THANK YOU.

AND COUNCIL MEMBER MCCARTHY INDICATED HE WAS READY TO MAKE A MOTION.

THERE'S NO OTHER DISCUSSION.

OKAY, SO I BROUGHT THAT MY QUESTION UP A FEW MINUTES AGO.

OH, I'M SORRY, I COMPLETELY I COMPLETELY FORGOT.

DID YOU HAVE ANOTHER QUESTION OR COMMENT COUNCIL MEMBER MCCARTHY BEFORE I TAKE PUBLIC COMMENT? NO, I WAS JUST GOING TO MOVE TO READ IT AS WRITTEN.

AND I WOULD JUST ADD A COUPLE PRELIMINARIES, BUT GO AHEAD AND DO PUBLIC.

THANK YOU. OKAY.

AND MY APOLOGIES.

ABEL. ABEL.

AUSTRIA. THANK YOU FOR HAVING ME UP HERE AGAIN.

I JUST WANT TO REITERATE THAT EARLIER I READ A STATEMENT THAT WE'RE ADAMANTLY OPPOSED TO.

THE HOMELESS. WELL, WE'RE CALLING IT THE HOMELESS PROJECT.

BUT THE PROJECT IN GENERAL, THERE ARE TWO ITEMS ON THIS AGENDA.

IT SAYS COMMUNITY ACTION TEAMS ACQUISITION OF REAL PROPERTY AND COMMUNITY ACTION TEAMS. MOBILE RESOURCE OUTREACH.

WE'RE NOT FOR APPROVING THAT TO GET THAT FOR AS PART OF THIS, AS A PART OF THIS REQUEST.

SO YEAH, AND IT ALL COMES UNDER THE ENTIRE PROJECT.

SO WE ARE NOT FOR IT.

SO I JUST WANTED TO JUST REITERATE THAT.

AND IT'S ON HERE AS APPROVAL.

AND WE WOULD LIKE IT FOR NOT TO BE APPROVED.

THE ACQUISITION OF REAL PROPERTY HAS A $0 RECOMMENDATION.

OKAY. AND THE MOBILE RESOURCE AND OUTREACH BUS IS THE RESOURCE THAT THEY'RE ALREADY USING AND, AND HAVE MOVING AROUND TOWN WITH SHOWERS AND SUCH.

WELL AND THAT PART I DO UNDERSTAND, BUT I THE PROJECT IN GENERAL WE'RE.

WE DON'T WANT SOCIAL NEW SOCIAL SERVICE IN OUR NEIGHBORHOOD.

I REALIZE IT'S PARTIALLY OUT THERE.

IT WAS EXPLAINED TO ME THAT THEY MIGHT COME TO THE FOOD CENTER AND BRING THEIR MOBILE BUS ON SITE.

WE CAN PROBABLY WORK WITH HER TO NOT DO THAT ANYMORE.

YOU KNOW. AND SO AGAIN, I'M SIMPLY REITERATING WE'RE AGAINST THIS PROJECT.

THAT'S ALL. OKAY.

THANK YOU, THANK YOU.

NEXT WE HAVE WENDY WHITE.

THANK YOU. MEMBERS COUNCIL.

I WANTED TO THANK THAT I REALIZED THAT THERE IS A $0 RECOMMENDATION FOR OUR APPLICATION, BUT I WANT TO THANK THE HOUSING STAFF AND THE COMMISSION FOR THEIR THOUGHTFUL CONSIDERATION OF OUR CDBG APPLICATION.

IT'S REALLY UNFORTUNATE TO ME THAT THE COMMUNITY STILL DOES NOT RECOGNIZE THE VALUE THAT PEOPLE WHO ARE HOMELESS BRING TO THE COMMUNITY.

IT'S UNFORTUNATE TO ME THAT PEOPLE WHO ARE THAT THE COMMUNITY STILL SEES PEOPLE WHO ARE UNSHELTERED OR UNSHELTERED RELATIVES AS CRIMINALS AND PARIAHS. I'D LIKE TO TELL YOU A COUPLE OF THINGS ABOUT OUR UNSHELTERED CREW THAT HAVE CONTRIBUTED TO THE CITY, PARTICULARLY THE SUNNY SIDE AND SOUTH SIDE NEIGHBORHOODS.

AND I'M GOING TO BE COMING BACK HERE ON ON JUNE 11TH TO MORE FULLY DESCRIBE OUR PEOPLE AT WORK PROGRAM, WHICH IS PART OF THE THE GRANT FUNDED THROUGH THE SUSTAINABILITY CITY SUSTAINABILITY OFFICE.

BETWEEN JULY 1ST OF TWO OF 2023 AND DECEMBER 13TH OF 2023 OUR PEOPLE AT WORK PROGRAM EMPLOYED NUMEROUS UNSHELTERED RELATIVES TO PICK UP LITTER AROUND THE CITY, FUNDED BY A GRANT FROM THE CITY THROUGH THE CITY SUSTAINABILITY OFFICE.

THE AREA WHERE OUR UNSHELTERED CREW MEMBERS SPENT THE MOST TIME WAS ACTUALLY THE SUNNYSIDE NEIGHBORHOOD AND THE FOURTH STREET CORRIDOR, WITH THE SUNNYSIDE NEIGHBORHOOD BENEFITING THE MOST FROM THEIR TIME.

OUR UNSHELTERED CREW MEMBERS, WE HAD NUMEROUS UNSHELTERED CREW MEMBERS WERE IN THE SUNNYSIDE NEIGHBORHOOD THROUGHOUT THAT PERIOD OF TIME PICKING UP LITTER.

OUR HOMELESS CREWS SPENT 336 MAN HOURS OR PERSON HOURS.

THEY WEREN'T ALL MEN IN SUNNYSIDE DURING THAT PERIOD, PICKING UP 261 BAGS OF TRASH COVERING THE ENTIRE AREA FROM ROUTE 66 TO CEDAR

[01:35:05]

AVENUE AND FOURTH STREET TO WEST STREET OVER 2024 DIFFERENT DAYS OVER THAT PERIOD.

DURING THAT PERIOD OF TIME, THE AMOUNT OF TRASH PICKED UP IN SUNNYSIDE WAS APPROXIMATELY 1221 CUBIC FEET.

NO ONE IN THE NEIGHBORHOOD COMPLAINED ABOUT OUR CREW MEMBERS BEING THERE.

ON THE CONTRARY, THEY WERE THANKED BY EVERYONE AND WERE EVEN TREATED TO COOKIES AND WATER BY VARIOUS RESIDENTS.

OUR CREW ALSO PICKED UP LITTER ON THE SOUTH SIDE AND IN THE SOUTH SIDE NEIGHBORHOOD.

WE COLLECTED. THEY COLLECTED.

NOT ME. 198 BAGS OF TRASH FROM THE NEIGHBORHOOD.

THE SUNNYSIDE NEIGHBORHOOD WITH 291 MAN HOURS OVER A 20 OVER 23 DIFFERENT DAYS, AND AN ADDITIONAL 68 BAGS OF TRASH ALONG WEST ROUTE WEST BUTLER. WHEN PEOPLE THINK ABOUT THOSE WHO ARE HOMELESS, THERE IS THIS VISCERAL AND IMMEDIATE REACTION THAT DOESN'T MATCH THE MAJORITY OF THE PEOPLE WHO DO NOT HAVE, WHO FIND THEMSELVES IN THESE CIRCUMSTANCES.

PEOPLE WHO ARE HOMELESS ARE JUST AS MUCH A PART OF THIS COMMUNITY AS THOSE WHO AREN'T.

THANK YOU VERY MUCH.

THANK YOU. WENDY.

ALL RIGHT. COUNCIL MEMBER MCCARTHY.

THANK YOU MAYOR.

I MOVE THAT WE READ RESOLUTION 2024 DASH 17 BY TITLE ONLY.

DO I HAVE A SECOND? I'LL SECOND. THANK YOU.

ANY DISCUSSION? YES. I'M SORRY.

I DID JUST WANT TO SAY ONE MORE THING IN THIS CONVERSATION BEFORE WE WE VOTE ON THIS.

BECAUSE I.

FROM MY PERSPECTIVE, IT SEEMS THAT THERE IS CONVOLUTION OF TWO CONVERSATIONS THAT ARE HAPPENING AND PRIMARILY SURROUNDING THE COMMUNITY ACTION TEAMS PROJECT THAT IS NOT RECOMMENDED FOR FUNDING.

I THINK THERE ARE TWO SEPARATE CONVERSATIONS HAPPENING THERE THAT ARE WORTH NOTING, AND THOSE ARE THE CONVERSATION OF THE NEEDS OF OUR UNSHELTERED RELATIVES WITHIN THE COMMUNITY AND THE ADMIRABLE WORK OF OF ATTEMPTING TO MEET THOSE NEEDS.

BUT ALSO A CONTRASTING CONVERSATION THAT I THINK IS PRIMARILY COMING FROM THE SUNNYSIDE COMMUNITY ITSELF, OF A VERY FREQUENT TERM IN SOCIAL SERVICES CIRCLES, WHICH IS NOTHING FOR US WITHOUT US, AND THAT NEED FOR COMMUNITY ENGAGEMENT AND PARTNERSHIP AND TRUE VOICE IN THOSE SORTS OF PROGRAMS. ONE OF THE THINGS THAT'S COME UP IN THIS CONVERSATION HAS REALLY FOCUSED IN AROUND THE HISTORY OF NEIGHBORHOODS LIKE SUNNYSIDE OR SOUTH SIDE, OR OTHER NEIGHBORHOODS LIKE THEM, WHERE THESE TYPES OF SOCIAL SERVICES ARE RELEGATED TO EXISTING ONLY WITHIN THEM.

WHICH IS IS VERY MUCH BASED IN HISTORICAL SEGREGATION PRACTICES AND, AND PROBLEMATIC PRACTICES WHEN IT COMES TO WHO'S DETERMINED TO BE WORTHY, QUOTE UNQUOTE, OF LIVING IN CERTAIN NEIGHBORHOODS OR BEING SERVED BY CERTAIN NEIGHBORHOODS.

BUT I THINK THERE'S ALSO A NEED FOR CAUTION WHEN WE'RE HAVING THOSE CONVERSATIONS TO NOT OVER CONFLATE THOSE TWO CONVERSATIONS TO MAKE IT SOUND AS THOUGH WHAT'S BEING SAID IS THAT OUR UNSHELTERED RELATIVES DON'T BELONG IN OR ARE NOT WANTED IN SUNNYSIDE OR SOUTH SIDE OR OTHER COMMUNITIES.

I THINK THE THE TRUE CONVERSATION THAT I'VE BEEN HEARING FROM THAT IS THAT THIS WAS A PROJECT THAT WAS BROUGHT INTO THE COMMUNITY WITHOUT THAT COMMUNITY INPUT. AND SO I JUST WANTED TO GIVE VOICE TO THAT AND EXPRESS THAT NEED FOR I DON'T KNOW WHERE SUNNYSIDE WOULD STAND ON THIS IF THIS HAD GONE THROUGH THAT COMMUNITY ENGAGEMENT PROCESS.

AND PARTICIPATION.

AND I DON'T KNOW WHERE THEY MAY STAND ON IT IF IT COMES BACK IN THE FUTURE WITH THAT PROCESS BEING ENGAGED IN.

BUT I WOULD HOPE THAT NEXT TIME OR IN THE FUTURE, THOSE SORTS OF CONVERSATIONS HAPPEN BEFORE WE GET TO THIS POINT SO THAT THEY CAN CAN MORE FULLY BE FLESHED OUT, AND SO THAT THE COMMUNITY ITSELF FEELS AS THOUGH THEY ARE BEING GIVEN THAT VOICE TO EXPRESS THE NEEDS OF THEIR COMMUNITY AND AND THAT NEIGHBORHOOD.

SO THANK YOU.

THAT WAS ALL. THANK YOU.

ALL RIGHT.

WE HAVE A MOTION AND A SECOND.

ALL THOSE IN FAVOR?

[01:40:01]

AYE, AYE. ANY OPPOSED? ALL RIGHT. CITY CLERK.

A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL APPROVING THE CITY OF FLAGSTAFF COMMUNITY DEVELOPMENT BLOCK GRANT 2024 ANNUAL ACTION PLAN AND AUTHORIZING ITS SUBDIVISION TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

CAN I GET A MOTION TO ADOPT THE RESOLUTION? I MOVE TO ADOPT.

THANK YOU. DO I HAVE A SECOND? I'LL SECOND. ALL RIGHT.

ANY DISCUSSION? ALL THOSE IN FAVOR? AYE AYE AYE. ANY OPPOSED? ALL RIGHT.

MOVING DOWN TO ITEM.

THANK YOU. CHRISTINE.

MOVING DOWN TO BE CONSIDERATION AND POSSIBLE ACTION.

[B. Consideration and Possible Action: Use of the Council Initiative Fund. STAFF RECOMMENDED ACTION: Authorize the use of the Council Initiative Fund to support the Flagstaff Community Band and discuss any other programs Council may like to consider funding within this fiscal year's Council Initiative Fund or next fiscal year.]

USE OF THE COUNCIL INITIATIVE FUND.

MAYOR COUNCIL.

WE'RE GOING TO DO A LITTLE TAG TEAM ON THIS SHANNON ANDERSON AND MYSELF, AND WE MAY BE ACCOMPANIED BY OTHERS FROM FINANCE.

THERE'S BEEN A GOOD COLLABORATION BEHIND THIS.

AND WHILE THE TOPIC AS SET FORTH IN THE AGENDA SPEAKS TO USE OF THE COUNCIL INITIATIVE FUND, AND THAT'S PRIMARILY THE FOCUS OF THE DISCUSSION THERE WILL BE SOME OTHER THINGS ADDED TO THAT.

YOU'LL YOU'LL SEE THAT HERE IN JUST A MINUTE.

I'M KICKING THIS OFF, BUT SHANNON ANDERSON WILL HELP WITH THE PRESENTATION, WHICH IS NOW BEFORE YOU I WANT TO BACK UP A LITTLE BIT ON THE COUNCIL INITIATIVE FUND.

AND IN YOUR PACKET, YOU HAVE THE EXECUTIVE SUMMARY ON THIS, AND IT'S A NICE IT'S A NICE ARTICULATION OF WHAT THIS FUND IS AND WHEN IT CAME INTO EXISTENCE, I WILL NOT RESTATE.

IT'S BEEN ON THE BOOKS FOR A FEW YEARS NOW.

IT WAS NOT DRIVEN BY A SINGULAR REQUEST OR NEED.

IT WAS ACTUALLY SOMETHING WE DID PROACTIVELY WITH COUNCIL TO ENABLE YOU TO HAVE A DISCRETION FROM TIME TO TIME TO FUND ITEMS THAT DO NOT FALL NEATLY WITHIN THE BUDGET PROCESS.

IN COUNCIL HAS HAD REALLY EXCELLENT DISCUSSIONS ABOUT THE USE OF THIS FUND.

AND I THINK ALONG WITH THAT EXCELLENT EXAMPLES OF EXPENDITURES THAT WERE THE KIND, THE KINDS OF EXPENDITURES THAT WERE ENVISIONED WHEN THIS FUND WAS CREATED.

IT IS NOT A LARGE FUND.

IT'S $25,000 APPROPRIATION ANNUALLY.

IT DOES NOT CURRENTLY ROLL OVER.

SO AND WE ARE COMING UP TO THE END OF THE FISCAL YEAR SOON.

AND YOU HAVE IN YOUR PACKET AN ACCOUNTING OF WHERE WE ARE WITH THAT.

AND I THINK IT'S IN THE PRESENTATION.

AND I'LL LET SHANNON ROLL US THROUGH THE PRESENTATION.

BUT BRIEFLY THERE ARE TWO ITEMS THAT WE WANT YOU TO GIVE CONSIDERATION IN THE CONTEXT OF THIS FUND THE FIRST COUNCIL HAS ALREADY TALKED ABOUT. SO THIS DOESN'T, I THINK, REQUIRE A LOT OF REVISITING.

THAT IS THE COMMUNITY BAND IDEA WHICH WAS FORMULATED AT THE DAIS.

AND NOW YOU HAVE A LETTER IN YOUR PACKET AND WE'LL SPEAK TO THAT IN A MINUTE.

THE SECOND IS REQUEST COMING FROM ELEVATE PRE-K.

ALSO A LETTER IN YOUR PACKET.

AND SO WITH THAT, I THINK I WILL TURN IT OVER TO SHANNON.

AND THEN AGAIN, WE'LL GO BACK AND FORTH BETWEEN THESE TWO.

I THINK WE'LL BE LOOKING FOR TWO SEPARATE NOT FORMAL ACTIONS, BUT TWO DIRECTIONS FROM COUNCIL REGARDING THIS.

AT THE CONCLUSION OF THIS PRESENTATION.

THANK YOU. AND GREG, IF I COULD QUICKLY ADD PART OF THE REASON WHY WE SAID FOR THERE TO BE AN OPEN DISCUSSION WITH COUNCIL IS THERE WAS ALSO MENTION THAT YOU MIGHT WANT TO DEDICATE FUNDING.

NOT SURE IF IT'S THIS FISCAL YEAR OR NEXT FISCAL YEAR.

TO THE STEM PROGRAMS THAT PRESENTED AT.

I BELIEVE THAT WAS YOUR LAST MEETING.

SO WE JUST WANTED TO BE ABLE TO WRITE THIS STAFF SUMMARY IN A WAY THAT IT ALLOWS YOU TO HAVE THOSE CONVERSATIONS NOW SHOULD YOU CHOOSE TO DO SO.

SO THIS PRESENTATION IS SPECIFICALLY ABOUT THE ELEVATE PRE-K FUNDING PORTION OF THIS REQUEST.

WE WANTED TO GIVE YOU SOME OF THE FEEDBACK THAT WE CONSIDERED AS PART OF THE BUDGET TEAM.

WE THOUGHT IT WAS GOOD FACTS AND INFORMATION FOR YOU TO HAVE AVAILABLE IN MAKING YOUR DECISION AS WELL.

SO AGAIN, THE COUNCIL INITIATIVE FUND FOR THIS FISCAL YEAR, YOU HAVE APPROXIMATELY $5,000 THAT'S REMAINING.

THEY DON'T ROLL OVER TO THE NEXT FISCAL YEAR BUDGET, AS GREG EXPRESSED.

AND SO WE'LL WANT TO WORK ON CONTRACTS THAT ARE EXECUTED PRIOR TO THE END OF THIS FISCAL YEAR, JUNE 30TH.

[01:45:08]

THE FLAGSTAFF COMMUNITY BAND.

YOU HAVE A DOCUMENT IN YOUR PACKET THAT OUTLINES THE VARIOUS DONOR BENEFITS THAT YOU CAN PROVIDE AND THE DOLLAR AMOUNTS ASSOCIATED WITH EACH OF THOSE.

SUPPORT FOR THE FLAGSTAFF COMMUNITY.

BAN WAS DISCUSSED AT THE APRIL RETREAT.

DIRECTION WAS TO SPONSOR A CONCERT.

SO WE'RE BRINGING THIS BACK TO COUNCIL FOR YOUR APPROVAL.

AND THE SPONSORSHIP RANGES FROM 1000 TO 1499.

OTHER FUNDING CONSIDERATIONS IS IF YOU WANT TO DIRECT ANY OF THE REMAINING FUNDS FOR THIS PARTICULAR FISCAL YEAR.

AND SINCE IT'S A GOOD TIME TO HAVE THAT DISCUSSION, WE THOUGHT WE WOULD ADD THESE ADDITIONAL ITEMS FOR YOU.

SO THE FUNDING REQUEST FOR THE ELEVATE PRE-K, WE RECEIVED A $40,000 FUNDING REQUEST.

IT CAME THROUGH UNITED WAY, AND IT'S TO SUPPORT THE ELEVATE PRE-K PROGRAM.

THE LETTER CAME ON MAY 2ND OF THIS YEAR.

WE DID PRESENT A BALANCED BUDGET BACK IN APRIL.

AND SO WE FELT IT WAS IMPORTANT TO BRING THIS BACK THROUGH THIS METHOD.

FOR YOUR CONSIDERATION MOST OF OUR SERVICE PARTNER CONTRACTS DID GET A 5% INCREASE WHICH AMOUNTED TO JUST OVER $57,000 TO FURTHER SUPPORT OUR SERVICE PARTNERS AND THE FLAGSTAFF COMMUNITY.

WE DO NOT HAVE ADDITIONAL FUNDS THAT ARE SET ASIDE FOR THIS IN NEXT YEAR'S BUDGET.

AND THE REQUEST ITSELF TO FUND THE ELEVATE PRE-K IS THEY WILL BE UTILIZING THE 80,000 THAT WAS PROVIDED BY THE CITY FROM FEDERAL ARPA DOLLARS.

UNITED WAY WILL BE DEDICATING $35,000 THEMSELVES.

THE COUNTY IS CONSIDERING AN ADDITIONAL 35,000 AND THEN A 65,000 DEDICATED AMOUNT FROM WARDEN FOUNDATION.

SO THIS CONSIDERATION IS THAT 40,000 FOR THE CITY CONTRIBUTION TO MAKE UP THE $255,000 TOTAL.

THE BUDGET TEAM DID DISCUSS THIS REQUEST LAST WEEK DURING OUR MEETING ON THURSDAY.

WE SPENT SEVERAL MONTHS REVIEWING REQUESTS FROM THE ENTIRE ORGANIZATION TO BRING FORWARD THE BALANCED BUDGET IN APRIL.

THE CITY NEEDS ARE CERTAINLY GREATER THAN THE RESOURCES THAT WE HAVE AVAILABLE.

GIVEN THAT WE HAD $18 MILLION IN REQUESTS THAT WE WERE NOT ABLE TO FUND WITH THE RESOURCES.

A BALANCED BUDGET IS PREPARED AND WE'VE PRESENTED THAT TO THIS COUNCIL BODY.

AND SO BECAUSE THIS REQUEST IS OUTSIDE OF THAT PROCESS, THE RECOMMENDATION IS TO NOT FUND THE REQUEST.

SHANNON, WOULD THIS BE A GOOD TIME FOR ME TO JUMP BACK IN? YEAH, ABSOLUTELY. GREG.

THANK YOU SO MUCH.

AND THANKS FOR WALKING US THROUGH THAT.

I WANT TO GIVE A LITTLE BIT OF EMPHASIS TO WHAT SHANNON JUST NOTED, WHICH IS THAT THE BUDGET PROCESS HAS, EVEN THOUGH IT HAS NOT FORMALLY CONCLUDED YET.

THAT HAPPENS WITH COUNCIL ADOPTION OF THE BUDGET, WHICH COMES NEXT MONTH.

BUT THE NUTS AND BOLTS OF THE BUDGET HAVE BEEN PUT TOGETHER, AND WE'VE HAD NUMEROUS RETREATS SPANNING THE PAST YOU KNOW, SEVERAL MONTHS ON THIS, AS WE DO EVERY YEAR.

SO WHILE THE.

RECOMMENDATION FROM THE BUDGET TEAM IS TO HOLD FIRM TO WHAT WE HAVE ALREADY IN THE BUDGET.

WE DO KNOW HOW COUNCIL FEELS ABOUT EARLY CHILDHOOD EDUCATION AND THE ELEVATE PRE-K PROGRAM.

SPECIFICALLY, WE LIKEWISE ARE SUPPORTIVE OF THE PROGRAM.

THE CITY HAS A TRACK RECORD OF SUPPORTING THE PROGRAM.

SO WE WANTED TO GIVE COUNCIL SOME.

OPPORTUNITY HERE.

AND SOME STRATEGIES TO CONSIDER SHOULD THERE BE A DESIRE TO FUND MOST OF WHAT'S BEING REQUESTED, MOST OF THE $40,000 REQUEST SPECIFICALLY.

AND I'M GOING TO SUMMARIZE THE BULLET POINTS THAT SHANNON HAS IN FRONT OF YOU.

WE CAN DO A REALLOCATION OF UNSPENT NONFEDERAL ARPA FUNDS.

COUNCIL MAY RECALL PREVIOUS DISCUSSIONS WHERE SIMILAR REALLOCATIONS HAVE OCCURRED.

THEY HAVE NOT REQUIRED A LOT OF NO, NO FORMAL ACTION, PER SE, BUT RATHER JUST DIRECTION TO STAFF.

AND WE HAVE DONE THAT IN THE PAST.

THERE'S BEEN A LITTLE BIT OF REALLOCATION IN THE PAST.

SO WE HAVE SOME FUNDS THAT COULD BE REALLOCATED.

[01:50:04]

POTENTIALLY THAT'S THE FOURTH BULLET POINT THAT YOU SEE THE 31,285.

AND SHOULD THAT BE THE CASE THAT WOULD LEAVE A SHORTFALL.

IF WE WERE TO TARGET, WE THINK THE $40,000 REQUEST MAY BE A BIT OUT OF REACH, BUT AT 35,000 WE COULD PERHAPS UTILIZE THEN A PORTION OF THE COUNCIL INITIATIVES INITIATIVE FUND, WHICH WHICH REMAINS.

AND AS YOU NOTE FROM SHANNON'S PRESENTATION AT THE BEGINNING, THERE'S CURRENTLY A BALANCE OF ABOUT 4000 LEFT IN THAT FUND.

SO THAT WOULD YOU KNOW, EXHAUST THAT FUND PRETTY MUCH.

WHICH IS PROBABLY GOOD CONSIDERING THE TIME OF YEAR WE'RE IN.

THE FUND WILL AGAIN, YOU KNOW, IT WILL EITHER BE USED OR WILL WILL BE NOT ROLLED OVER, BUT WILL WILL DISSIPATE COME JUNE 30TH AT THE END OF THE FISCAL YEAR.

SO THIS IS AN OPPORTUNITY TO SEE THE REMAINING FUNDS ALLOCATED.

AND THANK YOU, SHANNON, FOR LETTING ME JUMP IN AND GIVE THAT EXPLANATION THERE.

BUT WE DID WE DID WANT TO GIVE COUNCIL OPPORTUNITY TO MEET THE REQUEST HERE.

IT JUST, AGAIN, DOESN'T FALL NEATLY WITHIN WHAT HAS ALREADY BEEN BUDGETED, BUT A REALLOCATION AND A PARTIAL USE OF YOUR INITIATIVE COULD GET US VERY CLOSE. AND I KNOW WE HAVE PEOPLE IN THE AUDIENCE EVENTUALLY WHO WILL WANT TO SPEAK TO THIS, BUT I WANTED TO SHARE THAT NARRATIVE WITH YOU.

SHANNON, IS THERE ANYTHING YOU WANT TO ADD TO WHAT I JUST STATED? I DON'T BELIEVE WE HAVE ANYTHING ELSE HERE, GREG, BUT I'LL.

YEAH, THAT'S THE END OF OUR PRESENTATION.

DO YOU WANT ME TO LEAVE THE ALTERNATIVES UP? SO THAT WAY IT'S HANDY FOR THE DOLLAR AMOUNTS.

WOULD THAT BE HELPFUL? OKAY.

SOUNDS GOOD. AND JUST TO CLARIFY, YOU'RE TALKING ABOUT INITIATIVE FUNDING FOR THE CURRENT FISCAL YEAR, NOT FOR THE NEXT FISCAL YEAR.

CORRECT. AND THE 4000 THAT IS STILL LEFT IS THAT AFTER WE GIVE MONEY TO THE COMMUNITY BAND? CORRECT. OKAY.

SO WE HAD DISCUSSED A THOUSAND TO THE COMMUNITY BAND.

IS THAT CORRECT? OKAY, SO COUNCIL THOUGHTS? JUST. OH, GO AHEAD, GO AHEAD.

SORRY. COUNCIL MEMBER HOUSE.

DOES THE THOUSAND DOLLARS GET US TO.

THE CONCERT.

COUNCIL. VICE MAYOR GETS US TO US.

OKAY. THAT'S ALL.

THAT'S. COUNCIL MEMBER HOUSE.

DID YOU HAVE YOUR HAND UP? YES. THANK YOU. MAYOR.

I WOULD VERY MUCH LIKE TO ADVOCATE FOR THE REALLOCATION, REALLOCATION RECOMMENDATIONS THAT ARE BEING PRESENTED THERE.

AND IF I CAN TAKE JUST A MOMENT TO SHARE A LITTLE BIT OF WHAT I HAD THE OPPORTUNITY TO DO TODAY, IT WAS NOT RELATED TO MY ROLE ON COUNCIL, BUT ACTUALLY RELATED TO OTHER COMMUNITY INVOLVEMENT THAT I HAVE.

I HAD THE OPPORTUNITY TO VISIT WITH A CLASSROOM AT CRAMER ELEMENTARY, AND WE WERE SPEAKING TO THEM AS THEY'RE ABOUT TO END THEIR, THEIR SCHOOL YEAR.

AND IT WAS REALLY ONE OF THE THINGS THAT STUCK WITH ME FROM THAT CONVERSATION WAS THESE WERE FIFTH GRADERS WHO WERE ABOUT TO GO INTO JUNIOR HIGH, BASICALLY, OR PRE HIGH SCHOOL AT THE SIXTH GRADE LEVEL.

AND THEY WERE EXPRESSING THEIR FEAR AND HESITATION OF OF GOING INTO THAT PROCESS.

AND RIGHT BEFORE THEY HAD SHARED THAT I HAD ASKED WHAT THEIR FAVORITE SUBJECTS IN SCHOOL WERE, AND SO MANY OF THEM SAID HISTORY.

AND SO AT THAT POINT, AS THEY WERE TALKING ABOUT THEIR FEARS, I ASKED YOU KNOW, SHOW OF HANDS, HOW MANY OF YOU SAID THAT HISTORY WAS WAS ONE OF YOUR FAVORITE SUBJECTS? AND THEN AFTER THEY RAISED THEIR HAND, MY QUESTION TO THEM WAS, HOW DO YOU THINK PEOPLE MAKE HISTORY? AND ONE OF THE STUDENTS IMMEDIATELY RESPONDED BY DOING IT LIKE, YEAH, EXACTLY.

IT'S STEPPING OUT IN THAT BRAVERY AND STEPPING OUT IN THAT FEAR OF WHAT COMES NEXT.

AND ONE OF THE REASONS WHY THAT STUCK WITH ME SO MUCH WAS BECAUSE OF THE CONVERSATIONS THAT WE'VE HAD SO MANY TIMES ABOUT THE EARLY INTERVENTION OF EARLY EDUCATION IN ADDRESSING THE NEEDS OF OUR COMMUNITY.

BEING ABLE TO MEET OUR YOUNG PEOPLE AT THOSE EARLIEST STAGES, INCLUDING PRE-K, IS AN OPPORTUNITY FOR US TO START SPEAKING INTO THEIR

[01:55:04]

LIVES AND THEIR FUTURES FROM THAT EARLIEST LEVEL TO PREVENT THEM FROM, FROM FALLING INTO HOUSING INSECURITY AND ECONOMIC INSECURITIES.

AND SO I THINK THAT AS WE'RE LOOKING TO MEET THOSE VARIOUS NEEDS WITHIN OUR COMMUNITY THIS IS AN OPPORTUNITY FOR US TO LITERALLY PUT OUR MONEY WHERE OUR MOUTHS ARE AND, AND MAKE POSITIVE STEPS TOWARDS SUPPORTING THAT.

SO I HOPE THAT THERE IS FURTHER COUNCIL SUPPORT FOR THAT REALLOCATION SO THAT WE CAN SUPPORT THIS.

AND I AM OPEN TO EITHER OF THE RECOMMENDED OR POTENTIAL RECOMMENDED.

UTILIZATION OF THE COUNCIL INITIATIVE FUNDING THAT ARE PRESENTED ON THIS SLIDE.

BUT I'D REALLY LIKE TO SEE US GET AS CLOSE TO THE ASK AS POSSIBLE.

THANK YOU.

VICE MAYOR. THANK YOU VERY MUCH.

I MAY TAKE A COUPLE OF MINUTES HERE, AND I MIGHT POPCORN AROUND A LITTLE BIT.

I APOLOGIZE IF THIS SOUNDS OR FEELS DISJOINTED.

DON'T HAVE ANYTHING PREPARED.

I JUST WANTED TO SPEAK TO A FEW THINGS.

WE WE HAVE DISCUSSED SUPPORTING THE FLAGSTAFF COMMUNITY BAND A COUPLE OF TIMES.

I THANK YOU ALL FOR YOUR RECEPTIVITY TO THAT IN YOUR INTEREST.

I AM A VOLUNTEER BOARD MEMBER ON THE FLAGSTAFF COMMUNITY BAND.

I THINK THAT'S WORTH STATING EACH TIME WE HAVE THIS DISCUSSION.

I'M NOT IN A IN A PLACE WHERE I NEED TO RECUSE MYSELF IN THAT, IN THAT SITUATION, I DON'T THINK I'M GOING TO JUST BECAUSE WE'RE HAVING A LARGER CONVERSATION. AND THERE'S THERE'S SEVERAL THINGS THAT WE'RE TRYING TO NAVIGATE HERE.

THE, THE IDEA IT WAS A REALLY, REALLY SMART IDEA THAT THE, THE MAYOR BROUGHT UP.

I DON'T KNOW IF SHE WAS ADVOCATING FOR IT, BUT YOU DID RAISE THE IDEA THAT WE SPONSOR ONE OF THE SUMMER CONCERTS.

I THINK THAT'S A FABULOUS WAY FOR US TO MOVE FORWARD ON THIS.

THE CONCERT SPONSORSHIP LEVELS GO FROM 1000 TO 1499.

SO I JUST WANT TO THROW THAT OUT THERE.

IF WE STICK TO THE $1,000 LEVEL, I THINK, I MEAN, THE COMMUNITY BAND IS GOING TO BE VERY GRATEFUL FOR COUNCIL FOR WHATEVER THEY DECIDE TO CONTRIBUTE.

I DO WANT TO SAY THAT IN GENERAL AND RULES ARE ALWAYS MEANT TO BE BROKEN, RIGHT? BUT IN GENERAL, I THINK THE WAY I UNDERSTAND GUIDELINES FOR THE COUNCIL INITIATIVE FUND WE DON'T WANT TO WE DON'T WANT TO FUND SOMETHING INTO PERPETUITY. WE DON'T WANT TO BE IN THE HABIT OF MAKING THIS AN ANNUAL CONTRIBUTION.

I THINK THAT WOULD GET US INTO TROUBLE VERY QUICKLY.

WE'D RUN THROUGH THAT MONEY ALMOST IMMEDIATELY, AND THEN IT WOULD JUST BE ALLOCATED.

AND IT DOESN'T REALLY FEEL LIKE IT'S A DISCRETIONARY ITEM AT THAT POINT.

THE OTHER THING THAT I THINK IS IMPORTANT IN GENERAL IS THAT THESE RECOMMENDATIONS COME FROM US.

AND I THINK IF WE CAME OUT A DIFFERENT SCENARIO, WE CAN UNDERSTAND HOW THAT COULD BECOME PROBLEMATIC IF.

THE COMMUNITY UNDERSTANDS THERE'S THIS POT OF MONEY, AND WE START GETTING SOLICITATIONS AND REQUESTS AND ARGUMENTS.

AND HOW DO WE DEAL WITH THAT? I THINK THE MORE THAT THIS STAYS INTERNAL, THE BETTER.

I WOULD SAY FOR SURE THAT THIS REQUEST, WHICH IS COMING FIRST FROM OUR CITY MANAGER'S OFFICE, IS PERFECTLY WITHIN THE PERSONAL PRIVILEGE OF OUR CITY MANAGER.

I JUST WANT TO ACKNOWLEDGE THAT OVER THE YEARS THAT I'VE WORKED WITH YOU, MR. CLIFTON, YOU HAVE ALWAYS BEEN ABLE TO FIND CHANGE IN THE POCKETS OR LOOK UNDER THE COUCHES AND AND FIND A LITTLE BIT OF MONEY HERE AND THERE AND MADE FUNDS AVAILABLE FOR ALL SORTS OF THINGS SO THAT WE DON'T HAVE TO HAVE UNCOMFORTABLE CONVERSATIONS.

THAT'S HAPPENED.

AND EVERY BUDGET RETREAT YEAR AFTER YEAR AFTER YEAR.

I THINK IT'S PERFECTLY REASONABLE FOR US TO YOU KNOW, CASH IN A CHIP AND AND THROW THIS ONE BACK AT YOU.

IT HELPS THAT THIS IS A KNOWN ISSUE THAT WE'VE ALL EXPRESSED SUPPORT FOR IN THE PAST AND THAT WE'RE, YOU KNOW, WE KNOW THIS MONEY IS GOING TO GOOD USE.

I WOULD I DON'T KNOW IF IF IF I SEE OUR ELEVATE PRE-K FOLKS IN THE IN THE AUDIENCE.

I DON'T KNOW IF AUDIENCE IS THE RIGHT WORD FOR WHAT WHAT WE HAVE HERE.

I WOULD RECOMMEND THAT.

MAYBE YOU DON'T COME UP AND TALK.

I THINK THAT COMPLICATES THINGS A LITTLE BIT IN TERMS OF THAT THAT ASPECT AND THAT PRECEDENT OF, YOU KNOW, WHERE ARE THESE, WHERE, WHERE ARE THESE ASKS COMING FROM? AND HOW DO WE FIELD THOSE ASKS?

[02:00:02]

I'M, I WILL SAY FOR MYSELF YOU KNOW, AND AGAIN, YOU CAN OVERRIDE ME.

I'M JUST ONE VOICE UP HERE.

IF YOU FEEL THAT THAT SOMETHING NEEDS TO BE SAID.

THAT'S COMPLETELY UP TO YOU.

BUT I WILL SECOND MY SUPPORT FOR THIS THAT COUNCIL MEMBER HOUSE EXPRESSED.

I'M HOPING OTHERS WILL EXPRESS THAT SUPPORT.

BEFORE PUBLIC COMMENT COMES, AND MAYBE WE CAN AVOID THAT SITUATION.

LASTLY, I, I YOU KNOW, I ECHOED COUNCIL MEMBER HARRIS'S I THOUGHTS ABOUT SUPPORTING THE STEM PROGRAMS, THE COCONUTS AND THE OTHER ONE AT LAST WEEK'S COUNCIL MEETING.

IT WAS MY UNDERSTANDING WHEN I WAS SAYING THAT, THAT WE WERE TALKING ABOUT THE NEXT YEAR'S POOL.

IF THAT'S NOT THE CASE, THAT'S FINE TOO.

I'M ONLY ONE VOICE, BUT MY SUGGESTION WOULD BE THAT WE GO AHEAD AND EITHER DO 1000 OR 1499 TO THE COMMUNITY BAND RELINQUISH THE REST OF THOSE FUNDS OVER TO ELEVATE PRE-K.

AND VERY SOON AFTER THE THE NEXT CYCLE OPENS UP, WE CAN HAVE A CONVERSATION ABOUT OUR, OUR STEM IDEA.

AND OF COURSE, OVER THE COURSE OF THE YEAR, OTHER IDEAS WILL COME UP TO SO WE NEVER WANT TO SPEND IT ALL IN ONE PLACE, I'M SURE.

BUT THAT'S WHERE MY THINKING IS AT RIGHT NOW.

AND AGAIN, I DON'T THINK I'LL SPEAK AGAIN JUST BECAUSE I DON'T WANT TO, YOU KNOW, I'VE ALREADY HAD MY SAY ON ALL THESE THINGS.

I JUST WANT TO EXPRESS MY GRATITUDE TO COUNCIL FOR BEING RECEPTIVE AND FOR AND FOR CONSIDERING THE OPTION TO FUND THE FLAGSTAFF COMMUNITY BAND.

THEY DID, AT MY REQUEST, THE EXECUTIVE DIRECTOR OF THE FLAGSTAFF COMMUNITY BAND.

WROTE A LETTER TO COUNCIL.

I THINK YOU ALL GOT THAT.

I WAS THINKING OF READING IT FOR THE RECORD, BUT I'M NOT GOING TO DO THAT.

I TRUST ALL OF YOU SAW THAT EMAIL A COUPLE OF WEEKS AGO, I THINK AND ACTUALLY, IF WE COULD, IF WE COULD GET THAT LETTER INTO THE, THE PUBLIC RECORD AS A DOCUMENT, I THINK THAT WOULD BE GREAT, JUST BECAUSE IT DOES A REALLY GOOD JOB OF SPELLING OUT WHY THIS ONE TIME CONTRIBUTION MAKES A LOT OF SENSE.

AND AS SOMETHING FOR COUNCIL TO SUPPORT.

THANK YOU ALL. THANK YOU.

COUNCIL MEMBER MCCARTHY.

THANK YOU, MAYOR.

WELL, I READ THE PACKET AND I LISTENED TO EVERYTHING THAT WE'VE SAID TONIGHT, AND I'M STILL A LITTLE BIT CONFUSED, SO LET ME SEE IF I GOT THIS STRAIGHT.

WE'VE ALREADY DECIDED TO PUT $1,000 TO THE COMMUNITY BAND.

IS THAT CORRECT? I'LL TAKE A STAB AT THIS.

I THINK THE RANGE IS 1000 TO 1499.

I THINK THERE WAS A DECISION TO DO A CONCERT WITHIN THAT RANGE.

I DON'T KNOW THAT WE'VE HAD AN EXACT FIGURE.

OKAY. AND THEN EVEN AFTER THAT, THERE'S STILL APPROXIMATELY $5,000 LEFT.

IS THAT CORRECT? APPROXIMATELY.

THERE'S $5,000 TOTAL RIGHT NOW.

AND SO THEN ONCE YOU TAKE THE THOUSAND, THEY'D HAVE FOUR.

THANK YOU. YEAH, IT'S WHAT WE SEE ON THE SLIDE.

AND FORGIVE ME. SO WE HAVE WE HAVE APPROXIMATELY 5000.

WILL PROBABLY GIVE 1000 TO 1500 SOMEWHERE IN THERE TO THE BAND.

AND THEN.

THEN THE DISCUSSION IS THAT WE CAN TAKE SOME MONIES FROM OTHER PLACES AND MOVE THEM AROUND AND GIVE HOW MUCH TO PRE-K.

I BELIEVE WHAT'S BEFORE YOU IS THE REALLOCATION OF THE ARPA FUNDING, THE NONFEDERAL FUNDING, AS DISCUSSED, AND UTILIZING THE REMAINDER OF WHAT RESIDES IN YOUR INITIATIVE.

WHATEVER THAT AMOUNT WOULD BE.

BUT WE WOULD EXHAUST THAT AMOUNT TO THE ELEVATE PRE-K PROGRAM THAT'S GOING TO LIKELY FALL SOMEWHERE BETWEEN IT'S GOING TO BE IN THE NEIGHBORHOOD IS THE NEIGHBORHOOD OF 35,000 TOTAL FOR THE ELEVATE PRE-K.

DOES THAT MAKE SENSE? I THINK SO.

SO I AM SUPPORTIVE OF GIVING, YOU KNOW, 5500 TO THE THE BAND AND THE REMAINDER TO PRE-K.

ELEVATE PRE-K.

SO I'LL MAKE MY FINAL COMMENTS AFTER WE HEAR PUBLIC PARTICIPATION IF THERE IS ANY.

THANK YOU. COUNCIL MEMBER SWEET.

THANK YOU. I HAVE A COUPLE OF COMMENTS AND A QUESTION.

MOVING FORWARD, I HOPE THAT ISSUES LIKE THIS HAPPEN DURING BUDGET SO THAT WE AREN'T HAVING TO BACKTRACK.

IT WOULD BE HELPFUL AND I'M WONDERING IF SOMEONE CAN TELL ME FOR THE ARPA FUNDS, WE HAVE LEFTOVER MONEY FOR

[02:05:06]

THE TOURISM, TRAVEL AND HOSPITALITY AND SMALL BUSINESS ASSISTANCE.

WAS THAT JUST.

NOT USED.

IT IS STILL AVAILABLE FOR THOSE INDUSTRIES.

OR IS IT LEFT OVER THAT WE CAN'T USE FOR THAT ANYMORE? CAN YOU EXPLAIN? I'LL TAKE A STAB AND INVITE BRANDI SUITOR TO HOP ON, OR HEIDI HANSEN EITHER ONE WHO CAN PROBABLY SPEAK TO THIS WITH MORE CLARITY THAN I CAN.

I DON'T THINK IT'S UNUSUAL TO SEE THAT NOT ALL OF THESE ARPA FUNDS ARE EXPENDED, ESPECIALLY THE NONFEDERAL FUNDS, WHICH ARE A LITTLE BIT MORE DISCRETIONARY.

THANK YOU. AND WHILE BRANDI IS WALKING UP HERE, BRANDI SUDA, BRANDY, COULD YOU HELP ME OUT ON THIS ONE? SURE. GOOD AFTERNOON, MAYOR AND COUNCIL.

BRANDI SUDA, THE FINANCE DIRECTOR.

SO THESE ARE LEFTOVER FUNDS.

YOU KNOW, AFTER WE DID WE TRIED TO AWARD ALL THE GRANT FUNDING.

THERE WAS A LITTLE BIT LEFT THAT WAS NOT AWARDED.

WE JUST DID NOT HAVE MY UNDERSTANDING.

AND HEIDI HANSEN CAN PROBABLY CORRECT ME IF I'M WRONG, BUT WE DID NOT HAVE ENOUGH APPLICANTS TO ALLOCATE ALL OF THE RESOURCES, SO THERE WAS JUST A TINY BIT LEFT. THANK YOU.

YOU KNOW, THAT FRUSTRATES ME TO KNOW THAT THERE WEREN'T ENOUGH APPLICANT APPLICANTS.

BUT MOVING FORWARD, YOU KNOW, I AM A PAST ELEMENTARY TEACHER.

I DO BELIEVE IN EARLY CHILDHOOD EDUCATION.

I THINK THIS IS GOOD. SO I AM SUPPORTIVE OF THE REALLOCATING OF THE FUNDS AT THE $35,000 LEVEL USING THE 3715 OF COUNCIL INITIATIVE.

THANK YOU. HEIDI.

HEIDI HAS A COMMENT.

THANKS. MAYOR AND COUNCIL MEMBER SWEET FOR YOUR CONCERN ABOUT THE TOURISM FUNDS.

WHAT HAD HAPPENED WAS WE WENT THROUGH A GRANT PROCESS, AND WE DID ALLOCATE ALL OF THE MONEY TO ANY STAKEHOLDER THAT HAD APPLIED, BUT NOT ALL OF THE STAKEHOLDERS FOLLOWED THROUGH.

THERE ARE CERTAIN REQUIREMENTS THAT THEY HAD TO MEET IN ORDER TO RECEIVE THE FUNDING.

SO THEREFORE THAT'S WHY WE HAVE A LITTLE BIT REMAINING.

SO I JUST WANT TO LET YOU KNOW, WHEN WE WENT THROUGH THE PROCESS, WE DID TRY TO ALLOCATE ALL THE FUNDING.

IT IS THE PARTICULAR PARTNER OR STAKEHOLDER THAT DIDN'T FINISH IT THROUGH THEIR END.

SO THEN WE'RE NOT ALLOWED TO CONTINUE WITH THAT PROCESS.

AND THEN THOSE FUNDS BECAME AVAILABLE AND WE ARE NOW PUTTING THEM INTO ANOTHER SUGGESTED USE.

THANK YOU, HEIDI, FOR CLARIFYING.

COUNCIL MEMBER HARRIS.

SO I WOULD LIKE TO HEAR FROM THE PUBLIC PARTICIPATION AND I AM IN SUPPORT OF THIS, BUT I THINK IT'S HELPFUL FOR US TO HEAR WHY THIS REQUEST IS COMING TO US AT THIS POINT IN TIME.

SO. ANY ADDITIONAL COUNCIL MEMBER MCCARTHY.

THE LAST LINE SAYS AT $40,000 LEVEL, USE 8007 15 OF COUNCIL INITIATIVE.

WHERE DID THAT NUMBER COME FROM? I WAS JUST TOLD THAT WE HAD 5000.

THAT'S CORRECT. I THINK YOU CAN DISREGARD THAT LAST BULLET ITEM.

ANY ADDITIONAL COMMENTS OR QUESTIONS? OKAY. I'M GOING TO TAKE PUBLIC COMMENT.

SCOTT PETTIT.

GOOD EVENING. SO WE APPROACHED YOU TODAY TO DISCUSS ABOUT CONTINUING SUPPORT OF ELEVATE PRE-K FOR AN ADDITIONAL YEAR OF THE PILOT.

AS YOU ALL KNOW, THE CITY HAS SUPPORTED A SUSTAINABILITY AND FEASIBILITY STUDY, WHICH WE'RE GOING TO.

FINALIZE OVER THE COMING YEAR.

DURING THAT TIME, IT IS EXTREMELY IMPORTANT TO US THAT THE PILOT CLASSROOM CONTINUES TO BE OPEN FOR AN ADDITIONAL YEAR.

AND THAT'S WHERE THE FUNDING IS COMING FROM, IS TO SUPPORT THIS CLASSROOM.

WHILE THIS NEXT FISCAL YEAR, WE COMPILE THE SUSTAINABILITY AND FEASIBILITY STUDY ON WHAT WOULD BE INVOLVED TO SCALE UP, ELEVATE PRE-K SO THAT IT'S ACCESSIBLE TO EVERYBODY.

AND THAT WOULD HAVE A THREE PRONG OUTCOME.

THE FIRST WOULD BE WHAT IS THE CAPACITY OF.

OUR COMMUNITY BE ABLE TO PROVIDE ALL OF ALL THE SUPPORTS AND THE WRAPAROUND SERVICES FOR THIS.

THE SECOND ONE WOULD BE WHAT IS THE SENTIMENT OF THE COMMUNITY ON INVESTING IN THIS?

[02:10:06]

AND THEN THE THIRD ONE WOULD BE THE FINANCIAL SUSTAINABLE COMPONENT OF THIS, SO THAT IT IS NO LONGER A PROGRAM THAT IS, THAT SOLICITS PHILANTHROPIC DOLLARS LIKE THIS ON A YEAR TO YEAR BASIS, THAT IT HAS A SUSTAINABLE FUNDING SOURCE MOVING FORWARD INTO PERPETUITY.

IT'S EXTREMELY IMPORTANT TO DEMONSTRATE THE EFFICACY AND SUCCESS OF THE CLASSROOM DURING THIS TIME.

AND SO WE'RE GOING TO CONTINUE TO KEEP IT OPEN FOR ANOTHER YEAR WHILE WE COME UP WITH A SOLUTION FOR THAT.

THIS IS IMPORTANT BECAUSE IT ADDRESSES NOT JUST AN EDUCATIONAL.

A SOLUTION, BUT IT ALSO ADDRESSES THE ECONOMIC VITALITY AND THE WORKFORCE DEVELOPMENT.

AND IT'S A PIECE IN THE PUZZLE FOR THE HOUSING SOLUTIONS IN OUR COMMUNITY.

AND SO THAT'S WHY WE'VE APPROACHED YOU.

I'VE ONLY GOT 48 SECONDS LEFT, BUT DO ANY OF YOU HAVE ANY QUESTIONS FOR ME BEFORE I HAND IT OFF FOR LIZ ARCHULETA TO FINISH EXPLAINING WHY WE'RE HERE? COUNCIL MEMBER MCCARTHY.

SO IT SEEMS THAT RIGHT NOW WHAT WE ARE IN IS A AN EVALUATION AND A TRIAL RUN.

AND, AND THEN ONCE WE PROVE THAT THIS WORKS AND INCIDENTALLY, I'M VERY SUPPORTIVE OF PRE-K EDUCATION. BUT RIGHT NOW THIS IS A REAL SPECIAL PROCESS WHERE WE'RE TRYING TO FIGURE IT OUT.

WORK OUT A MODEL, AND THEN AFTER THAT WE WILL COME UP WITH, WELL, HOW WOULD WE FUND THIS? SHOULD IT BE FROM THE CITY? SHOULD IT BE FROM THE SCHOOL DISTRICT OR WHEREVER? SO THAT'S KIND OF THE WAY I UNDERSTAND THIS.

THANK YOU. YES.

THAT'S CORRECT. ALL RIGHT.

THANK YOU. ALL RIGHT. THANK YOU.

THE NEXT CARD I HAVE IS BETH GIACOLONE.

AND THEN THE FOLLOWING CARD IS LIZ ARCHULETA.

THANK YOU, MADAM MAYOR.

VICE MAYOR, MEMBERS OF THE COUNCIL APPRECIATE SO MUCH THE OPPORTUNITY TO SPEAK TO THIS REQUEST.

FIRST OF ALL, I DO APOLOGIZE.

YOU DIDN'T HAVE A LONG RUNWAY TO TO LEARN ABOUT THE REQUEST AND CONSIDER IT.

UNITED WAY DID NOT HAVE A LONG RUNWAY WHEN WE WERE ASKED TO TAKE ON THIS PROJECT MOST RECENTLY.

AND SO LET ME JUST GIVE A LITTLE BIT OF CONTEXT.

THIS IS FOR THE FOURTH YEAR OF ELEVATE PRE-K.

YOU HEARD FROM SCOTT.

MOST RECENTLY WE WERE ASKED BY PARTNERS AND BY THE WARDEN FOUNDATION IF UNITED WAY WOULD BE IN THIS FOURTH YEAR, THE FIDUCIARY FOR ELEVATE PRE-K AND BRING IN THE PROGRAM INTO OUR UNITED WAY STRUCTURE.

PREVIOUSLY, THE PROGRAM HAD BEEN ADMINISTERED BY ANOTHER NONPROFIT, AND THEY'RE NO LONGER ABLE TO RUN THE PROGRAM.

SO WE FOUND THIS OUT ABOUT 60 DAYS AGO, AND WE'VE BEEN PIECING TOGETHER THE FUNDING BECAUSE WE'D LIKE TO CONTINUE TO HAVE THIS, THE ELEVATE PRE PRE-K IN OUR COMMUNITY AND FOR THE CHILDREN.

SO WE LIKE YOU OR ARE SCRAMBLING TO PIECE THIS TOGETHER.

BUT WE HAVE AND I'M REALLY, REALLY PROUD AND HAPPY TO SAY THAT WE'RE WE ARE VERY, VERY CLOSE WITH THAT.

I WOULD LIKE TO MODIFY OUR REQUEST TO $30,000.

WE DO NOT WANT TO TAP INTO THE COUNCIL'S INITIATIVE FUND.

THAT IS NOT OUR INTENTION.

AND WE COMMIT.

I COMMIT AS UNITED WAY TO FIND THE FUNDING THAT WE NEED SO THAT WE CAN KEEP IT TO THE 30,000 LEVEL AND KEEP IT TO THE REQUEST THAT YOU HAVE FOR THE FOR THE FUNDS THAT REMAIN FROM SOME OF THE ARPA.

SO WE'RE TALKING ABOUT $30,000 THAT WILL PIECE TOGETHER WITH WHAT WE'RE REQUESTING FROM THE COUNTY WHAT THE WARDEN FOUNDATION IS PROVIDING WITH THE ARPA FUNDS AND WITH A COUPLE OF GRANTS THAT WE HAVE IN WE HAVE YET STILL HEARD FROM.

BUT WE ARE, AS A UNITED WAY ORGANIZATION, COMMITTED TO FINDING THE FUNDING.

SO WE WILL CONTINUE TO SEARCH FOR GRANTS.

WE WILL CONTINUE TO DO WHAT WE NEED TO DO.

LUCKILY, WE HAVE THE COMMITMENT OF ALREADY ABOUT $180,000.

SO WE SHOULD BE ABLE TO HAVE ENOUGH MONEY TO MAKE SURE THAT WE START THE PROGRAM.

AND AGAIN, WE'LL FIND THE FUNDING FROM THERE.

BUT IT'S OUR GOAL AND OUR INTENT TO KEEP THE PROGRAM OPEN FOR AN ADDITIONAL FOUR YEARS.

CONTINUE TO COLLECT THE INFORMATION, FIND A SUSTAINABLE FINANCIAL MODEL SO THAT UNIVERSAL PRE-K CAN BE BROUGHT TO OUR COMMUNITY AT SOME POINT IN THE FUTURE.

AND THANK YOU SO MUCH. YOU'VE BEEN I MEAN, YOU'VE BEEN CHAMPIONS OF EARLY CHILDHOOD EDUCATION AND YOU'VE, YOU KNOW, SUPPORTED ELEVATE PRE-K

[02:15:04]

THROUGHOUT ITS INCEPTION AND REALLY APPRECIATE YOUR CONSIDERATION.

THANK YOU, VICE MAYOR, DID YOU HAVE A QUESTION FOR LIZ? I DO, AND A COMMENT.

THANK YOU, LIZ AND SCOTT, BOTH FOR FOR COMING FORWARD AND TALKING TO US.

AND THANK YOU, COUNCIL MEMBER HARRIS, FOR SUGGESTING THAT.

I DIDN'T MEAN TO SAY THAT I DIDN'T WANT TO HEAR FROM YOU.

I, I JUST TRYING TO NAVIGATE A PRECEDENT SETTING HERE.

AND I'M SORRY, BUT I THINK THE CAT'S ALREADY OUT OF THE BAG.

LIZ, I DON'T I DO WANT TO ASK YOU WE'RE WE'RE WILLING TO REMAND THE TO EXHAUST OUR COUNCIL FUND THIS YEAR. I THINK WHERE IT SORT OF AT THE POINT WHERE IF WE DON'T USE IT, WE LOSE IT.

WOULD YOU ACCEPT THE MONEY IF IF WE VOTED TO ALLOCATE IT ANYWAY? WELL, WE'D BE WE'D BE HAPPY TO.

I JUST DON'T YOU KNOW, I WAS A FORMER ELECTED OFFICIAL.

I DON'T EVER WANT TO PUT ELECTED OFFICIAL IN AN UNCOMFORTABLE SITUATION WHERE YOU DON'T HAVE A, YOU KNOW, WHERE YOU'RE HAVING TO TO LISTEN TO REQUESTS THAT YOU NORMALLY WOULD NOT LISTEN TO, ESPECIALLY OUT OF YOUR, YOUR CY FUNDS FOR THE COUNCIL.

SO THAT'S WHY MODIFYING IT.

BUT WE'D BE HAPPY TO ACCEPT IT.

IT'D BE GREATLY APPRECIATED AND IT WOULD CERTAINLY HELP THE BOTTOM LINE.

COUNCIL MEMBER MCCARTHY.

WHAT WAS YOUR NAME AGAIN? JUST KIDDING, I KNOW.

OUT OF SIGHT, OUT OF MIND.

RIGHT. COUNCIL.

I WOULD LIKE TO SAY THAT I AM FULLY IN SUPPORT OF THIS PROGRAM, AND I'M GRATEFUL TO THE UNITED WAY FOR TAKING IT ON.

I THINK THAT I THINK THAT WE'RE ALREADY SEEING RESULTS THAT INDICATE THAT THAT THIS IS THE WAY OUR COMMUNITY NEEDS TO GO.

SO I LOOK FORWARD TO, YOU KNOW, EVEN MORE DATA.

BUT I THINK MOST OF US HAVE BEEN IN A CLASSROOM AND HAVE SEEN WHAT'S GOING ON.

AND IT'S I MEAN, THE VALUE IS VERY EVIDENT.

AND I AM ALSO SUPPORTIVE OF.

THE ARPA FUNDS, AND I'M SUPPORTIVE OF THE REMAINDER OF OUR COUNCIL INITIATIVE.

I'M WONDERING WHETHER COUNCIL WANTS TO GIVE 1000 OR 1499 TO THE COMMUNITY BAND, BECAUSE THEN THAT IMPACTS THE 3715.

SO IS THERE ANYONE WHO WOULD LIKE TO GIVE 1499 RATHER THAN A THOUSAND? COUNCIL MEMBER HARRIS.

I WOULD JUST LIKE FOR THEM TO BE ABLE TO DO ONE CONCERT AND IF AND IF THAT ONE CONCERT COST THEM 14.99, THEN I'M IN FAVOR OF GIVING THEM THE 14.99.

COUNCIL MEMBER MCCARTHY I WOULD GO 1499.

I COULD SUPPORT THAT.

ALL RIGHT. I COULD AS WELL.

SO. SO WE DID A MOTION LAST TIME, DIDN'T WE? SO THE MOTION WOULD BE 1499 TO THE COMMUNITY BAND, AND THEN SOMEONE ELSE DO THE MATH FOR ME.

WHAT THE REMAINDER WOULD BE FOR ELEVATE PRE-K.

USE THE REMAINDER.

OKAY. OKAY.

SO MOVED. I'LL SECOND.

OKAY. WOW. OKAY.

ANY DISCUSSION? ALL THOSE IN FAVOR? I. I THANK YOU VERY MUCH.

ANYONE OPPOSED? ALL RIGHT. THANK YOU.

YES. AND THEN THE STAFF IS GOING TO REALLOCATE SOME OF THESE OTHER DOLLARS, AS WE TALKED ABOUT FOR PRE-K.

IS THAT CORRECT? YES.

ALL RIGHT. THAT SOUNDS GOOD TO ME.

THANK YOU. AND I THINK THAT I SPEAK FOR EVERYONE WHEN I SAY, LET US KNOW HOW WE PERSONALLY CAN BE SUPPORTIVE OF YOUR EFFORTS AS WELL.

OKAY. WE ARE GOING TO TAKE A SHORT BREAK.

JUST WHAT? I DIDN'T KNOW IF COUNCIL WANTED TO GIVE DIRECTION ON THE ROBOTICS PROGRAMS FOR NEXT FISCAL YEAR, OR IF YOU JUST WANT TO WAIT AND DISCUSS THAT AT A LATER DATE.

YEAH, LET'S WAIT UNTIL NEXT.

YES. SOUNDS GOOD.

THANKS. I WON'T BE HERE NEXT YEAR, SO DON'T ASK ME.

[02:20:02]

YOU'LL BE HERE NEXT FISCAL YEAR.

THINGS ARE GETTING OUT OF HAND.

OUT UP HERE.

OKAY, LET'S LET'S TAKE A TEN MINUTE BREAK AND WE WILL COME BACK AT 535. OKAY, WE ARE BACK.

WE'RE DOWN TO DISCUSSION ITEMS TEN A WATER SEWER AND RECLAIMED WATER RATES AND FEE STUDY.

[A. Water, Sewer, and Reclaimed Water Rates and Fees Study Special Work Session City staff and the City's Consultant, Stantec, are addressing questions from the City Council related to the assumptions used in the rate model. City staff and Stantec will facilitate a discussion on financial planning scenarios and how those might influence the outcome of the proposed rates for water, sewer, and reclaimed water rates and fees. The desired outcome is for the Council to provide their direction on the financial planning scenarios.]

SO, AARON.

GOOD AFTERNOON, CITY COUNCIL.

AARON YOUNG, WATER RESOURCES MANAGER, HERE TO INTRODUCE OUR STANTEC CONSULTANTS WHO HAVE JOINED US ONLINE.

CAROL WILL RESUME WHERE WE LEFT OFF ON THURSDAY.

SHE'LL GO THROUGH THE SCENARIOS, ADDRESS SOME QUESTIONS THAT HAVE COME FORWARD TO US, AND THEN WE'LL KICK IT OFF FOR DISCUSSION AMONGST COUNCIL. SO THANK YOU FOR YOUR ATTENTION TONIGHT AND WE'RE LOOKING FORWARD TO THE CONVERSATION.

CAROL, I'LL LET YOU TAKE IT OVER.

THANK YOU, AARON, AND GOOD AFTERNOON.

HI, CAROL. EXCUSE ME.

VICE MAYOR WOULD LIKE TO SAY SOMETHING.

YEAH. JUST REAL QUICKLY, CAROL.

AND TO EVERYONE ONLINE. I KNOW YOU GUYS FLEW OUT HERE LAST THURSDAY TO BE WITH US IN PERSON.

I REALLY APPRECIATE YOU DOING THAT.

I REALIZE YOU'RE ONLINE WITH US NOW.

I'M VERY GLAD YOU DIDN'T FLY OUT HERE A SECOND TIME FOR THIS.

SO JUST JUST WANTED TO THROW OUT THERE A RECOGNITION THAT YOU GUYS WERE HERE FOR US.

AND WE KEEP EXTENDING THIS CONVERSATION, AND I APPRECIATE YOU BEING WITH US IN ANY CAPACITY YOU CAN.

THANK YOU, VICE MAYOR AND MAYOR, MEMBERS OF COUNCIL, THANKS FOR HAVING US BACK FOR LONGER THAN 15 MINUTES.

WE DO APPRECIATE THE TIME THAT YOU'RE SPENDING TO GO THROUGH THIS, AND WE KNOW THAT THIS IS CRITICALLY IMPORTANT TO THE COMMUNITY AND TO THE CITY.

BEFORE I GET STARTED, I WANTED TO ALSO ACKNOWLEDGE THAT I'VE GOT VICE PRESIDENT OF MANAGEMENT AND TECHNOLOGY CONSULTING SERVICES.

OUR DIRECTOR, ANDY BURNHAM, IS ON LINE TWO.

YOU REMEMBER ZACH? I'M SORRY. YOU REMEMBER ZACH COOK? HE'S ONE OF OUR CONSULTANTS THAT'S BEEN WORKING VERY HARD ON THIS ANALYSIS WITH WITH US AND WITH YOUR TEAM, AARON YOUNG AND DIRECTOR SHANNON JONES AND SHANNON ANDERSON AND RICK TADDER.

EVERYONE HAS BEEN WORKING REALLY HARD WITH US AND HAS DONE A GREAT JOB HELPING US OUT TO.

AND AARON. FOR SOME REASON I CANNOT SEE THE PRESENTATION.

CAROL, WOULD YOU PREFER TO GO THROUGH IT YOURSELF? OR I CAN ADVANCE THE SLIDES IF YOU'D LIKE.

IF I COULD SHARE MY OWN SCREEN, THAT WOULD BE BEST.

I THINK IF THAT'S OKAY, YES.

THAT'S FINE. OKAY.

SO LET ME GET INTO THAT MOOD, PLEASE.

I HOPE THAT EVERYONE CAN SEE THE FIRST SCREEN.

I SEE THAT YOU CAN. THANK YOU.

ALL RIGHT. AS AARON MENTIONED, WE ARE GOING TO CONTINUE FROM WHERE WE LEFT OFF.

IF IT WASN'T TOO LONG AGO, IT FEELS LIKE IT WAS JUST YESTERDAY.

BUT WE WERE TALKING ABOUT FINANCIAL PLANNING SCENARIOS.

THIS IS AN ALL RELATION TO THE RATE STUDY.

AND I WANTED TO REITERATE AS I GET STARTED THAT FOR WATER AND WASTEWATER SERVICES, NO RATE INCREASES HAVE BEEN IMPLEMENTED SINCE IN OVER FOUR YEARS. SO WE'RE LOOKING AT THAT AND WE'RE ALSO LOOKING AT SIGNIFICANT CAPITAL IMPROVEMENT PROGRAM COSTS THAT HAVEN'T BEEN FUNDED IN A WHILE.

SO WE'RE LOOKING AT HOW TO PAY FOR THE ALL OF THE SERVICES THAT THE WATER FUND, THE WASTEWATER FUND RECLAIMED WATER PROVIDES.

WE'VE GONE OVER THE FIRST TWO ELEMENTS OF THE SCENARIOS THE GROWTH ASSUMPTIONS, THE ESCALATION ASSUMPTIONS.

I'M GOING TO HOP OVER TO THE THE PERCENTAGE OF DEBT FACTORS AND CAPITAL EXECUTION FACTORS.

ALL RIGHT, TAKE ME A LITTLE BIT.

HERE WE GO. THE DEAD.

FACTORS ARE THE NEXT CATEGORY OF ITEMS THAT WE CAN REVIEW AND LOOK AT SOME DIFFERENT ALTERNATIVES.

FIRST, AS WE STRUCTURED THIS PREVIOUSLY, I WANTED TO TALK ABOUT WHAT THE PERCENTAGE OF DEBT INFLUENCES WHEN WE'RE LOOKING AT RATES AND RATE MODELS. OBVIOUSLY, WHEN YOU ISSUE MORE OR LESS DEBT, THAT AFFECTS YOUR LONG TERM BORROWING AND IT AFFECTS YOUR RATE PROJECTIONS, SO IT AFFECTS THE RATES THAT YOUR USERS PAY.

[02:25:01]

IT ALSO AFFECTS THE FUNDING OF CAPITAL PROJECTS AND THE PROPORTION OF CAPITAL PROJECTS THAT ARE FUNDED WITH DEBT OR FINANCED WITH DEBT.

WE SEE DIFFERENT IMPACTS WHEN WE VARY THAT PERCENTAGE OF DEBT.

AND IN FACT, WHEN WE INCREASE THE PERCENTAGE OF THE CAPITAL IMPROVEMENT PROGRAMS THAT YOU THE PROJECTS THAT YOU FUND WITH DEBT, WE TYPICALLY SEE LOWER BILLS BECAUSE IT SPREADS OUT THE COSTS OF THESE PROJECTS OVER A LONGER TERM.

WE ALSO SEE, OF COURSE, AS I MENTIONED, THAT INCREASED PERCENTAGE OF FINANCING PROJECTS WITH DEBT.

WHEN YOU INCREASE THAT PERCENTAGE, IT MAKES SENSE.

BUT THAT'S WHAT WE'RE GOING TO SEE THROUGH THESE SCENARIOS.

WHAT WE HADN'T SHOWN YOU BEFORE IS THAT THERE ARE CERTAIN ASSUMPTIONS OF PROJECTS IN THE WATER CAPITAL IMPROVEMENT PLAN AND THE WASTEWATER CAPITAL IMPROVEMENT PLAN THAT ARE ANTICIPATED TO BE FUNDED OR FINANCED WITH DEBT.

BECAUSE THE MANAGEMENT SERVICES GROUP DOES A GREAT JOB PROJECTING AND BALANCING PROJECTS IN THE FIVE YEAR PLAN FOR WHAT COULD BE FUNDED OR FINANCED WITH DEBT. AND OUR FINANCIAL PROJECTIONS ASSUME A LITTLE BIT LONGER TERM, AND WE'RE LOOKING AT THAT FULL CAPITAL IMPROVEMENT PROGRAM FROM YOUR DIRECTION FROM LAST OCTOBER.

SO IN THAT 2025 THROUGH FISCAL YEAR 2033 PERIOD, SO THAT NINE YEAR PERIOD, WE HAVE CERTAIN PROJECT COSTS THAT ARE FINANCIAL MODELING ASSUMES WOULD BE EITHER PARTIALLY OR FULLY FUNDED WITH DEBT.

SO THIS IS A LIST OF THE PROJECTS THAT HAVE A PORTION OR THE ENTIRE PROJECT FINANCED WITH DEBT.

WE DIDN'T GET TO DIG THAT MUCH INTO THE SCREENSHOTS FROM OUR FINANCIAL MODEL LAST WEEK.

HOWEVER, I WANTED TO GO OVER QUICKLY THE SCENARIO THAT WE'RE SHOWING HERE WITH INCREASED BORROWING AND ADJUSTMENTS TO RATES.

THE BLUE AREAS SHOW THE WATER RATE PLAN THAT WE ARE CURRENTLY PROPOSING.

THIS IS THAT 15 FOR WATER? IT'S THE 15% RATE ADJUSTMENTS PER YEAR FOR THE FIRST FIVE YEARS, AND THEN THAT DROPS TO AN ESTIMATED 5% THEREAFTER.

THIS PLAN ASSUMES A CERTAIN AMOUNT OF BORROWING.

IT ASSUMES, IF YOU LOOK OVER TO THE RIGHT, THAT THE TOTAL DEBT FOR THE CURRENT PLAN IS APPROXIMATELY 54.95 MILLION OVER THIS NINE YEAR PERIOD.

THE ALTERNATIVE THAT WE RAN WAS TO LOOK AT A 5% DECREASE IN THE RATES.

SO THAT LAST PLAN IS LABELED AS THE GREEN PLAN.

SO THAT'S THE RESULTS WITH REDUCING THE RATE PLAN FROM 15% TO 10%.

AND LOOKING AT THE RESULTING AMOUNT OF BORROWING, THAT BORROWING INCREASES SIGNIFICANTLY.

IT'S ALMOST A DOUBLING OF THE BORROWING.

AND YOU CAN SEE THAT IN THE OVER THE RIGHT HAND SIDE WITH $103.62 MILLION.

ANOTHER WAY TO LOOK AT IT IS WITH SEVERAL OF THESE CHARTS THAT ARE THE OUTPUTS OF OUR FINANCIAL MODEL.

WHENEVER WE'RE LOOKING AT SCENARIOS, WE BALANCE OPERATING FUND BALANCES AND TARGETED OPERATING FUND BALANCES THAT ARE COMPLIANT WITH YOUR FINANCIAL POLICIES. WE ALSO LOOK AT THE MIX OF CIP FUNDING.

SO WHETHER IT'S DEBT OR OPERATING CASH GRANTS AND CAPACITY FEES.

SO THAT MIX OF FUNDING FOR ALL OF THE PROJECTS IS SHOWN IN THIS CHART.

THE CIP SPENDING IS HELD CONSTANT IN THIS SCENARIO.

AND THEN YOU CAN SEE THE IMPACT OF INCREASED BORROWING THAT THE CURRENT PLAN IS IN BLUE.

AND THOSE BARS ARE GENERALLY LOWER THAN THE GREEN BARS, WHICH IS THAT INCREASED BORROWING.

THE TABLE THAT WE DID FOCUS ON FOR THE PREVIOUS TWO FACTORS WAS A TABLE THAT LOOKED LIKE THIS.

THIS IS WHERE WE SHOW THE IMPACTS ON RATES OF INCREASED BORROWING.

WE'RE ALSO SHOWING YOU A COUPLE OTHER FACTORS.

FOR EXAMPLE, WHEN WE HOLD THE CAPITAL IMPROVEMENT PROGRAM LEVEL CONSTANT, THE BLUE IS FOR WATER, GREEN IS FOR WASTEWATER.

AND WE LOOK AT THE AMOUNT OF CIP FUNDED WITH DEBT FOR THAT NINE YEAR PERIOD.

WE CAN SEE THAT THE CURRENT PLAN, WITH 15% RATE ADJUSTMENTS EACH YEAR FROM FISCAL YEAR 2025 TO 2029, IS 50 ESTIMATED TO BE THAT 54.9 MILLION, WHICH WORKS OUT TO BE 30% OF THE TOTAL CIP FINANCED WITH DEBT.

IN THE SCENARIO WHERE WE INCREASE BORROWING IN ORDER TO ACCOMPLISH THE SAME CIP TOTAL OVER THE NINE YEARS, BUT WITH A 5% REDUCTION IN THOSE RATES, SO TO 10% RATE ADJUSTMENTS EACH YEAR FOR THE NEXT FIVE YEARS.

[02:30:03]

THE BORROWING INCREASES AND WE SEE A 56% THAT 56% OF THE TOTAL CIP WOULD BE FINANCED WITH DEBT.

WHEN WE WERE LOOKING AT THIS SCENARIO, WE THOUGHT THAT IT WAS THAT 56% IS GREATER THAN THE RATING AGENCIES MEDIAN, A PERCENTAGE FINANCED WITH DEBT.

IF YOU RECALL, I MENTIONED THAT THE RATING AGENCIES LOOK AT THE PERCENTAGE OF CIP FINANCED WITH DEBT, AND IN ONE OF THE RATING AGENCIES GUIDANCE DOCUMENTS, 38% OF THE CIP FUNDED WITH DEBT.

IS IS A FACTOR OR A METRIC OF HIGHLY RATED WATER UTILITIES AND WASTEWATER UTILITIES.

SO IN ORDER TO LOOK AT WHAT COULD WE DO TO BRING THAT CIP FUND FINANCED WITH DEBT DOWN A LITTLE CLOSER TO THAT 38% FACTOR, WE LOOKED AT WHAT AMOUNT OF FUNDING OR FINANCING WITH DEBT WOULD LOWER THAT PERCENTAGE AND LOWER THE RATE INCREASE.

SO IN THIS SCENARIO, WE SAW THAT A 12.5% RATE ADJUSTMENT OVER THE NEXT FIVE YEARS WOULD BE A CLOSER SCENARIO TO THIS.

GRANTED, IT WOULD BE MORE DEBT.

I'LL TALK ABOUT THAT IN A LITTLE BIT MORE IN A SECOND.

THE WASTEWATER SIDE.

THIS GREEN SET OF GREEN ROWS ARE CURRENT ASSUMPTIONS FOR WASTEWATER IS TO FINANCE 21% OF THE CIP WITH DEBT.

THIS RESULTS IN A RATE PLAN OF TWO YEARS OF 25% ADJUSTMENTS, THEN 15%, THEN TEN, THEN FIVE.

WITH AN INCREASED BORROWING SCENARIO, WE COULD EFFECTIVELY LOWER THAT PERCENTAGE INCREASE IN THOSE FIRST TWO YEARS BY 5% EACH YEAR BY INCREASING THE AMOUNT OF CIP FINANCED WITH DEBT TO 30%.

IN WASTEWATER.

THE YEARS FOR FISCAL YEAR 27 AND 28 ARE A LITTLE BIT TRICKY.

WE WERE UNABLE TO LOWER THOSE RATE ADJUSTMENTS BY BORROWING MORE, DUE TO THE TYPES OF PROJECTS THAT WERE NEEDED AND FUNDED DURING THAT YEAR OR THOSE TWO YEARS.

EXCUSE ME. SO THAT WAS WHY WE JUST FOCUSED ON WHAT WOULD BE REQUIRED FOR THESE FIRST TWO YEARS.

IN DISCUSSING THIS SCENARIO WITH YOUR FINANCE TEAM AND WITH MANAGEMENT SERVICES, WE UNDERSTAND THAT THE METRICS SURROUNDING BORROWING FOR THE CITY AND THE POLICY SURROUNDING BORROWING FOR THE CITY ARE WHILE THEY'RE LOOKED AT AND THE INDIVIDUAL FUNDS ARE BALANCED WATER FUND, WASTEWATER FUND.

WHEN WE'RE LOOKING AT THESE DEBT METRICS, THEY'RE LOOKING AT IT IN TOTALITY.

SO WE LOOK AT THE WATER PLUS WASTEWATER, WHICH IS WHY WE THOUGHT LET'S LOOK AT THE COMBINED ALTERNATIVE.

IF WE LOWER THE RATE ADJUSTMENTS FROM THE CURRENT SCENARIO OF 15% ADJUSTMENTS EACH YEAR FOR THE NEXT FIVE YEARS, THAT'S THE 12.5% SCENARIO.

AND THEN WE MAINTAIN THIS LOWERED SCENARIO FOR RATES FOR WASTEWATER TO THE 20%.

FOR THE FIRST TWO YEARS, WE WOULD BORROW SLIGHTLY MORE IN TOTAL FOR THOSE FIRST TWO PLANS, BUT ALSO IN TOTAL, WE WOULD BE ACHIEVING MORE AND CLOSER TO THAT MEDIAN METRIC FOR HIGHLY RATED WATER UTILITIES OF 38%.

SO WE FEEL THIS SCENARIO WOULD ACHIEVE TWO TARGETS.

IT WOULD STILL FUND ACTUALLY THREE TARGETS.

IT WOULD FUND THE FULL CIP FOR BOTH WATER AND WASTEWATER.

IT WOULD REDUCE THE RATES FROM THE CURRENTLY PROPOSED SCENARIO.

AND IT WOULD. WHILE IT WOULD INCREASE THE DEBT BURDEN, IT WOULD STILL BE WITHIN THAT RANGE OF HIGHLY RATED UTILITIES.

I COULD GO ON TO THE THE CIP FUNDING FACTORS, OR WE COULD STOP HERE FOR A MOMENT FOR ANY QUESTIONS.

THANK YOU. CAROL, I HAVE A QUESTION, BUT I WANT TO SEE WHETHER OTHER COUNCIL MEMBERS HAVE A QUESTION.

COUNCIL MEMBER MCCARTHY.

SO PHILOSOPHICALLY, I THINK THAT IF WE'RE FINANCING A VERY LARGE WATER PROJECT, YOU KNOW, A NEW PLANT THAT'S GOING TO LAST US 50 YEARS, I'M VERY COMFORTABLE PUTTING THAT ON DEBT.

ON THE OTHER HAND, IF WE'RE FUNDING JUST MAINTENANCE, YOU KNOW, KEEPING REPLACING PIPES, WHICH WE HAVE TO DO EVERY YEAR, EVERY YEAR, EVERY YEAR, IT REALLY DOESN'T MAKE AS MUCH SENSE TO PUT THAT ON TO MORTGAGE THAT, TO PUT IT ON DEBT.

SO I GUESS MY QUESTION FOR SHANNON IS, DO YOU UNDERSTAND WHERE I'M COMING FROM AND KIND OF WHERE OUR CIP IS? IS IT MOSTLY THESE BIG PROJECTS THAT ARE GOING TO LAST 30 YEARS, OR IS IT MOSTLY JUST MAINTENANCE OF THINGS THAT WE HAVE TO TAKE CARE OF?

[02:35:07]

A MAIER COUNCIL MEMBER MCCARTHY.

I THINK IT IS A MIX OF THAT.

SO YOU'RE RIGHT. RIGHT NOW THE CURRENT RATE MODEL IS NOT LOOKING AT THAT.

THOSE FUTURE PROJECTS THAT WE KNOW ARE ON OUR RADAR THAT WE'RE WORKING TOWARDS.

BUT THE RATE MODEL DID ASSUME A CERTAIN LEVEL OF DEBT WOULD STILL BE CONSUMED TO EXECUTE THOSE PROJECTS.

AND WHAT WE'RE TALKING ABOUT NOW IS, IS THERE ANY CAPACITY OR THRESHOLD TO INCREASE THAT, THAT AMOUNT OF DEBT TO HELP US COME TO AN END RESULT? WHICH IS WHY I THINK THERE'S MULTIPLE MULTIPLE CEREMONIES.

BUT I THINK TO YOUR POINT AT SOME POINT, IT DOES RESONATE WITH ME THAT IN THE FUTURE, HAVING SOME DEBT CAPACITY TO EXECUTE THESE LARGER PROJECTS EVEN IF IT'S GRANT FUNDED, KNOWING THAT WE'RE STILL GOING TO HAVE A PORTION THAT AT THE FRONT IS IS AN IMPORTANT FACTOR AND THE CONSIDERATION.

BUT I THINK FOR THE DISCUSSION, THE RATE MODEL WAS STILL ASSUMING THERE IS SOME DEBT APPLIED ACROSS THE BOARD TO SOME OF THE PROJECTS.

AND RIGHT NOW IS IS THERE CAPACITY TO MOVE THAT THRESHOLD, AND IS THAT IS THAT APPROPRIATE MOVE FOR TO FOR THE CITY OF FLAGSTAFF TO BE SUCCESSFUL? THANK YOU. AND, CAROL, CAN YOU REMIND US ALL WHERE THE PAYBACK FOR THE DEBT WHERE THAT MONEY COMES FROM.

AS MAYOR FOR THE MAJORITY OF THE DEBT.

FOR THE NON GROWTH RELATED PROJECTS, THE REVENUE COMES FROM THE RATES AND THE RATES THAT WE'RE PROPOSING HERE.

THERE IS A PORTION OF THESE PROJECTS THAT ARE THE GROWTH OR EXPANSION RELATED PROJECTS, WHERE THE THE REPAYMENT IS CONSIDERED TO BE COMING FROM CAPACITY FEE REVENUES. THANK YOU.

OKAY. I DON'T SEE ANY OTHER QUESTIONS.

THANK YOU. WE'LL MOVE ON TO THE LAST FACTOR, WHICH IS CIP FUNDING.

CIP FUNDING AND THE EXECUTION OF THAT CIP CAN BE ADJUSTED.

SO WE'RE LOOKING AT EXECUTION, REDUCTION OF THE CIP, THE CIP EXECUTION PERCENTAGES, INFLUENCE OF COURSE THE CAPITAL IMPROVEMENTS PLAN FUNDING AMOUNTS.

SO IN OUR MODELING, IF WE ARE TO REDUCE THE EXECUTION OF CAPITAL PROJECTS, WE DON'T PICK AND CHOOSE THE ACTUAL PROJECTS THAT WE GET REDUCED.

WE ASSUME THAT THE REDUCTION HAPPENS YEAR OVER YEAR OVER YEAR.

WE LEAVE THAT TO THE WATER SERVICES ENGINEERING TEAM TO FIGURE THAT OUT.

HOWEVER, IN OUR MODELING FOR MODELING PURPOSES, WE CAN ASSUME THAT 100% OF THE CIP IS NOT FUNDED EACH YEAR.

WHEN WE REDUCE THOSE EXECUTION PERCENTAGES, THAT AMOUNT HAS AN IMPACT ON ANNUAL REVENUE REQUIREMENTS FROM RATES.

THE IMPACTS THAT WE SEE WHEN WE REDUCE THE CIP FUNDING IS THAT, OF COURSE, CAPITAL IMPROVEMENTS ARE CUT.

IF EXECUTION FACTORS ARE LESS THAN 100%, WE TYPICALLY SEE LOWER BILLS, LOWER BILLS FOR ALL CUSTOMERS.

IF LESS CIP IS FUNDED, LESS BORROWING, OF COURSE, IS IS NEEDED IF THE CIP FUNDING IS REDUCED.

SO YOU'LL SEE ALL OF THESE IN THE SCENARIOS THAT WE'LL GO OVER.

AS I MENTIONED, AND WALKED THROUGH FOR THE PREVIOUS SCENARIO.

WHEN WE ADJUST OUR CAPITAL FUNDING, WE CAN REDUCE RATES IN THIS PARTICULAR SCENARIO.

AND OF COURSE, WE HAVE THAT CURRENT PLAN IN BLUE IS THE CURRENT PROPOSED RATES.

THE LAST PLAN IS THE RESULTING SCENARIO WHERE WE REDUCE THE RATES FROM THE 15% ON THE WATER SIDE TO 10%, AND WE REDUCE THE CAPITAL EXECUTION OR THE FUNDING OF CAPITAL WE HOLD CONSTANT THE AMOUNT OF DEBT OR THE AMOUNT OF THE TOTAL CIB THAT IS FUNDED WITH DEBT, BECAUSE WE HAVE TO HOLD SOME ASSUMPTIONS CONSTANT WHEN WE ARE RUNNING THESE SCENARIOS.

SO WE SEE THE TWO SCENARIOS, THE TWO OPTIONS HERE, AND WE SHOW THE EXACT SIMILAR TYPES OF CHARTS.

I'M NOT GOING TO GO OVER THESE, BUT IN THESE PARTICULAR CHARTS, YOU'LL NOTICE THAT THE CIP SPENDING BARS IN THIS PARTICULAR SCENARIO DIFFER EACH YEAR, WHEREAS THE BORROWING ALSO, EVEN THOUGH IT LOOKS LIKE IT CHANGES, I THINK IT IS SHOULD BE THE SAME.

BUT WE HAVE A DIFFERENT AMOUNT OF PROJECTS EACH YEAR.

WE HAVE THE SAME TOTAL AMOUNT BORROWED.

IN THIS. THE SUMMARY TABLE WHERE WE CAN DISCUSS WHAT THE OUTCOME IS, HOLDS THE CURRENT AMOUNT OF DEBT CONSTANT, AND IT LOOKS AT THE REDUCED CIP'S IMPACT ON RATE PROJECTIONS.

[02:40:07]

AGAIN, WATER IS IN BLUE, WASTEWATER IS IN GREEN.

WE SEE THAT THE CURRENT RATE PLAN OF 15% RATE ADJUSTMENTS PER YEAR FOR THE NEXT FIVE YEARS.

PRODUCES OR FUNDS A PROJECT TOTAL OF 185.6 MILLION, AND THAT WOULD BE AT 100% CIP EXECUTION.

SO THE WHOLE CIP FULL CIP IS FUNDED.

I MIGHT REMIND YOU THAT THE AMOUNT OF CIP FINANCED WITH DEBT IS 30% IN THIS SCENARIO.

WHEN WE REDUCE THE RATES TO A 10% RATE ADJUSTMENT EVERY YEAR FOR THE NEXT FIVE YEARS AND HOLD THE AMOUNT BORROWED CONSTANT, WE SEE THAT WE HAVE TO BRING OUR CIP EXECUTION FACTOR DOWN TO 78% ACROSS THE BOARD.

SO THAT MEANS A LITTLE OVER 20% OF THE CAPITAL IMPROVEMENTS ARE REDUCED.

THIS IS A REDUCTION OF $35.4 MILLION OF THE CIP OVER NINE YEARS, AS A RESULT OF HOLDING THE CIP FUNDED OR, EXCUSE ME, THE DEBT PROCEEDS CONSTANT.

HERE WE SEE THAT MORE OF THE CAPITAL IMPROVEMENT PROGRAM IS FINANCED.

THAT WOULD BE 36% IN THE SCENARIO.

I MIGHT MENTION, TOO, THAT IN THIS SCENARIO, WE ARE NOT ASSUMING THAT OUR DEFERRED OR ONE YEAR THEY'RE BROUGHT BACK.

SO THIS IS SIMPLY A 22% CUT ACROSS THE BOARD EACH YEAR, AND THAT EXTENDS OUT THROUGH THE THE LENGTH OF OUR MODEL, OUR PLANNING HORIZON, WHICH IS THROUGH 20 FISCAL YEAR 2033.

ON THE WASTEWATER SIDE.

THE CURRENT SCENARIO SHOWS THE FULL CIP OF 112.6 MILLION, FINANCED WITH $24 MILLION OF DEBT, AND THAT'S A 21% AMOUNT OF THE CIP FINANCED WITH DEBT.

THAT'S 100%.

OF THE CIP.

FUNDED AND THE RATE ADJUSTMENTS ARE TWO YEARS AT 25%, THEN 15%, THEN TEN, THEN FIVE, AND IT'S 5% THEREAFTER.

WHEN WE REDUCE THE RATES AND RECALL THAT WE CAN AFFECT THE RATES BY 5% IN WASTEWATER AS WELL.

SO WE'RE REDUCING THE FIRST TWO YEARS TO 20%, AND 2027 WOULD DROP FROM 15% TO TEN AND THEN 10% TO FIVE, ETC. THIS REDUCES THE TOTAL CAPITAL IMPROVEMENT PROGRAM BY $21.4 MILLION TO AFFECT THAT CHANGE.

AND THAT'S ESSENTIALLY AT 81% EXECUTION FACTOR.

AND AGAIN, THAT'S ACROSS THE BOARD THROUGH THAT NINE YEAR PERIOD.

THESE ARE THE THE SCENARIOS THAT WE RAN FOR THE CIP IMPACT.

AND IF YOU HAVE ANY QUESTIONS, THIS IS RIGHT BEFORE MY NEXT SECTION.

COUNCIL. ANY QUESTIONS? NO QUESTION O COUNCIL MEMBER MCCARTHY.

SO I GUESS ANOTHER QUESTION FOR SHANNON.

SO IF WE DON'T DO THESE CIP PROJECTS.

IS THIS? WHAT'S THE IMPACT OF THAT? IS THAT GOING TO BE THINGS THAT WE'RE REALLY GOING TO BE HURTING FOR YEARS FROM NOW, OR IT REALLY DOESN'T MATTER OR PLEASE COMMENT.

MAIER COUNCIL MEMBER MCCARTHY SIMILAR TO THE PRESENTATION I GAVE LAST WEEK, WHERE IT TALKS ABOUT THE PROCESS THAT WE GO THROUGH, HOW WE HOW WE OPERATE A SYSTEM WITHIN THE MEANS THAT WE HAVE. AND SO THOSE SAME APPROACHES WOULD COME INTO PLACE.

SO WHILE AGAIN, I THINK AN EASY AN EXAMPLE WOULD BE AGAIN ON INFRASTRUCTURE REPLACEMENT.

RIGHT. THE PIPES ON THE GROUND CURRENTLY, CURRENTLY WE'RE TARGETING ABOUT TWO MILES OF PIPE ON THE WATER SERVICES SIDE AND WE'RE ACHIEVING THAT.

BUT AGAIN WE KNOW THAT THAT WILL TAKE I'LL HAVE TO HAVE LIFE.

EXACTLY. SO? SO WHILE WE'RE LOOKING TO FULLY FUND AND WE WOULD LOVE TO ELEVATE THAT TO TO FOUR MILES A YEAR.

BUT ALSO KNOWING THAT WE MOVE THE NEEDLE IF, IF WE'RE ABLE TO DO TWO AND A HALF OR THREE MILES THAT WE'RE DOING BETTER TODAY THAN WE WERE AND WE CONTINUE TO PROCESS TO GO THROUGH.

SO AGAIN, WHILE MAYBE THAT MIGHT BE OPTIMAL WHERE WE WANT TO BE.

I'M LOOKING AT THE SAME NUMBERS AS COUNCIL, WHERE AGAIN, JUST ON A PERSONAL NOTE, RIGHT.

NOT THRILLED AT 80% EXECUTION RATE ON A CIP, BUT ALSO NOT SUPER THRILLED ON YOU KNOW, 56% OF OUR CIP FUNDED WITH DEBT.

AND SO WORKING THROUGH THOSE NUMBERS THAT CAUSE AND EFFECT.

AGAIN, WE'VE TALKED MULTIPLE TIMES ABOUT THIS IS A CHALLENGING EXERCISE, RIGHT? THAT'S NOT A SIMPLE SOLUTION TO THE PROBLEM WE'RE TRYING TO DO.

BUT UNDERSTANDING THAT WITHIN THE CIP.

AGAIN, WE WOULD GO THROUGH THE SAME PROCESS OF PRIORITIZATION, THE THINGS THAT NEED TO BE DONE.

WE WILL FIND WAYS TO GET THOSE DONE.

WE WILL CONTINUE TO IMPLEMENT VALUED ENGINEERING AND WE WILL WORK WITHIN RIGHT.

[02:45:05]

THE CONSTRAINTS OF THAT BUDGET AND WHAT WE HAVE AVAILABLE.

AND SO IS THIS MOST LIKE A PIPE REPLACEMENT? I CAN UNDERSTAND DOING LESS MILES.

WILL THIS IMPACT BIGGER PROJECTS? THE THINGS THAT NEED TO BE DONE AT THE SEWER PLANT OR AT THE THE WATER TREATMENT PLANT OR THOSE WOULD NOT REALLY BE AFFECTED OR THEY WOULD BE AFFECTED THEY WOULD BE AFFECTED.

AGAIN, WE WOULD CONTINUE TO PRIORITIZE THOSE THOSE PROJECTS AND MAKE MONEY AVAILABLE FOR THE THINGS THAT ARE MOST CRITICAL THAT NEED TO BE EXECUTED NOW AND CONTINUE TO FIND WAYS TO FUND THOSE OTHERS, WHETHER, AGAIN, IT'S REDEFINING THE PROJECT.

DOES IT CREATE MORE OPPORTUNITY FOR YOU KNOW, POSSIBLE OUTSIDE FUNDING? AND AND WE CONTINUE TO WORK THROUGH AND DO CAN WE DO THIS YEAR OVER YEAR, WE CONTINUE TO ASSESS THAT.

AND AS LONG AS WE'RE ABLE TO MAINTAIN AND WE'RE MEETING THOSE OPERATIONAL EXPECTATIONS, THOSE WILL BE OUR CONVERSATIONS WITH COUNCILS.

IF WE BEGIN TO DEVIATE TOO FAR, I THINK WE WOULD BE BACK AT THESE DISCUSSIONS SAYING LIKE, WHAT ARE THE PROJECTS NOT BEING ABLE TO BE EXECUTED AND WHAT DOES THAT MEAN? AND, AND, AND WE WOULD WORK TO THAT PROBLEM AT THAT TIME.

THANK YOU, SHANNON AND MAYOR.

THANK YOU TOO. WELL THANK YOU.

AND I CAME UP WITH A QUESTION WHILE YOU WERE ASKING THOSE QUESTIONS FOR CAROL, I BELIEVE.

CAROL. NOW, IT SLIPPED MY MIND.

ONE QUESTION I HAVE, AND I KNOW INTEREST RATES VARY, BUT WHAT IS THE ADDITIONAL COST OF THAT MONEY IF WE'RE IF WE'RE ISSUING DEBT TO PAY FOR THOSE PROJECTS.

THERE YOU ARE. THANK YOU FOR THE QUESTION.

I JUST HAVE A CLARIFYING QUESTION.

ARE YOU TALKING ABOUT THE INTEREST RATE FOR THE DEBT THAT WE'RE ASSUMING IN OUR CURRENT ASSUMPTIONS? OR OR IS THAT WHAT YOU'RE ASKING? WELL, I GUESS I'M.

SO I'M CONSIDERING, YOU KNOW, WHETHER THE CURRENT RATE PLAN OR THE 5% REDUCTION.

AND. AND DOING MORE OF THE PROJECTS USING DEBT.

SO AGAIN, I KNOW YOU CAN'T GIVE AN EXACT AMOUNT.

BUT I'M LOOKING FOR BALLPARK JUST FOR CONSIDERATION.

WHAT THE DIFFERENCE IS IF WE FINANCE VERSUS PAY AS WE GO.

IT'S MAYOR, I APPRECIATE THAT.

SO WE IN OUR PROJECTIONS WHEN WE ASSUMED ADDITIONAL BORROWING, WE MAINTAIN AN ASSUMPTION OF THE INTEREST RATE ON THOSE ON THOSE FUNDS.

AND I THINK WE'RE ASSUMING SENIOR DEBT, WHICH, YOU KNOW, IF YOU ARE IF YOU ARE RECEIVING PROCEEDS OR APPLYING FOR WIFFLE LOANS, YOU MIGHT HAVE LOWER INTEREST RATES.

SO OUR OUR ASSUMPTIONS, WE FEEL ARE CONSERVATIVE ON THE INTEREST RATES ON DEBT.

WE WOULD HAVE TO TALK TO YOUR FINANCIAL ADVISER ABOUT WHETHER ADDITIONAL BORROWINGS WOULD AFFECT YOUR, YOUR RATINGS AND YOUR INTEREST RATES.

OKAY. THANK YOU. THAT'S VERY VAGUE, BUT THAT'S OUR.

AND THEN ALSO I REMEMBERED THE FIRST QUESTION.

YOU SAID THAT 38% OF CIP FINANCE THROUGH DEBT WAS FAVORABLE.

AND DIDN'T YOU SAY THAT THAT WAS ADDING THE WATER AND WASTEWATER TOGETHER? 38%. MAYOR.

THAT WAS ONE OF THE SCENARIOS WE RAN WHERE WE LOOKED AT THAT COMBINED PERCENTAGE OF TOTAL CIP FINANCED WITH DEBT.

IN THIS SCENARIOS WE'RE SHOWING YOU HERE, WE DID NOT DO THAT.

WE KEPT THEM SEPARATE SO WE COULD PROBABLY LOOKING AT A WEIGHTED AVERAGE OF THESE PERCENTAGES OF THE CIP FINANCED WITH DEBT, IF WE WERE TO ACTUALLY LOOK AT THAT TOTAL METRIC.

SO WE'RE NOT LOOKING AT WE'RE NOT LOOKING AT, SAY.

30% UNDERWATER, 21 UNDER WASTEWATER AND COMING UP WITH 51%.

FINANCED. MAYOR.

THAT'S CORRECT.

IT'S NOT A SUM.

IT'S A WEIGHTED.

IT'S A WEIGHTED AVERAGE.

OKAY. THANK YOU.

I PROBABLY COULD DO THAT MATH, BUT I.

MATH ON THE FLY IS TRICKY.

I THINK THAT'S IT FOR QUESTIONS.

THANK YOU, MAYOR. I'LL MOVE ON TO THE NEXT SECTION.

WE HAD A QUESTION ABOUT HOW ALL OF THESE SCENARIOS AFFECT RATES AND BILLS.

[02:50:01]

AND TO RUN EACH ONE OF THESE SCENARIOS IS EXTREME.

A LOT OF EXTREMELY COMPLICATED AND A LOT OF WE'D HAVE TO PRESENT A LOT OF INFORMATION TO YOU.

SO WE SELECTED ONE SCENARIO TO SHOW THE PROJECTED BILL IMPACTS FOR RESIDENTIAL CUSTOMERS.

A SAMPLE RESIDENTIAL CUSTOMER AND A SAMPLE COMMERCIAL CUSTOMER.

FOR ONE OF THE SCENARIOS, WE SELECTED THE CIP REDUCTION AND RATE PROJECTIONS SCENARIO.

SO THAT THE LAST SCENARIO THAT I PRESENTED TO YOU, THERE'S A LARGE DRAFT STAMPED OVER THESE SLIDES.

BECAUSE THEY ARE THEY ARE DRAFT.

AND ANY DIRECTION YOU GIVE US TONIGHT, WE'D HAVE TO RECALCULATE ALL OF THESE VALUES.

SO IF WE WERE JUST LOOKING AT THIS PARTICULAR SCENARIO WHERE THE CIP WAS REDUCED ON AVERAGE BY $4 MILLION A YEAR OVER THE NEXT NINE YEARS, AND WE WERE REDUCING THE WATER RATE PROJECTION BY 5% FROM THAT 15% TO 10%.

FOR THE NEXT FIVE YEARS, WE COULD CALCULATE A TOTAL BILL.

THE FIRST SLIDE SHOWS YOU THE FIXED MONTHLY METER CHARGES THAT WOULD BE PROPOSED, AND THE VOLUME RATES THAT WOULD BE PROPOSED.

THE TWO SECTIONS OF THESE TABLES WE'VE PRESENTED FOR THE THE CURRENT SCENARIO THAT IT WAS IN THE DRAFT REPORT.

SO YOU'LL SEE THAT THE JUST A LITTLE REMINDER, THE FIXED MONTHLY METER CHARGE VARIES BY WATER METER SIZE.

AND WE'RE ONLY SHOWING THE INSIDE CITY LIMIT FACTORS HERE THAT WITH A REDUCTION IN THE CAPITAL IMPROVEMENT PROGRAM COSTS WE WOULD REDUCE THOSE RATES. THE FIRST RATE WOULD BE EFFECTIVE SEPTEMBER 1ST OF THIS YEAR, AND IT WOULD BE IN EFFECT THROUGH DECEMBER 31ST OF 2025. THEN YOU WOULD SEE THOSE 10% RATE ADJUSTMENTS EACH YEAR FOR THE NEXT FOUR YEARS.

YOU'LL SEE THE THE FIXED MONTHLY METER CHARGES BY METER SIZE IS HERE.

ON THE WATER RATE SIDE FOR THE VOLUME RATES, THAT IMPLEMENTATION DATE WOULD BE THE SAME, AND WE KNOW THAT THE SINGLE FAMILY POTABLE WATER RATES ARE ON AN INCLINING TIERED STRUCTURE, SO THAT TIER ONE IS CHARGED FOR USAGE BETWEEN 0 AND 3500 GALLONS A MONTH.

USAGE OVER 3500 GALLONS UP TO 6200 GALLONS IS THAT TIER TWO USAGE ABOVE 6200 GALLONS, UP TO 11,500 IS THAT TIER THREE AND THEN TIER FOUR IS AT 11,501 GALLONS.

SO ANYTHING OVER THAT THESE RATES REFLECT THE CHANGE, BUT ALSO THE RATE STRUCTURE THAT WE DISCUSSED DURING OUR RATE STRUCTURE AND REVIEW.

SO THIS WOULD BE THE SCENARIO WHERE WE ADJUSTED THE FIRST TWO TIERS TO RECOVER THE COSTS FOR INDOOR WATER USE FOR DIFFERENT EFFICIENT USE IN INDOORS BY DIFFERENT HOUSEHOLD SIZES.

SO THE FIRST TWO TIERS WOULD COVER THE BULK OF YOUR INDOOR WATER USE.

THE PEAK USAGE AND THE OUTDOOR WATER USE WOULD BE CHARGED AT HIGHER RATES FOR THESE USAGE LEVELS.

SO YOU COULD SEE THAT THE RATES HERE REFLECT THAT THAT IMPACT OF THAT RATE DESIGN REVISION THAT WE HAD DIRECTION FROM YOU.

FOR NONRESIDENTIAL CUSTOMERS.

WE HAVE THE CORRESPONDING RATES THAT RESULTED FROM THAT ANALYSIS.

AND IN THIS SCENARIO, WE'RE SHOWING THE INSTITUTIONAL CUSTOMER BEING COMBINED WITH COMMERCIAL AND SCHOOLS.

SO THEY HAVE THE SAME RATE.

AND THEN WE HAVE THE REMAINING CUSTOMER CLASSES HERE.

SO THIS RATE SCHEDULE REFLECTS NOT ONLY THIS THIS ADDITIONAL SCENARIO OF REDUCING THE CIP, BUT ALSO THE RATE STRUCTURE CHANGES WE'VE DISCUSSED IN THE PAST FEW MONTHS.

THAT EFFECT ON A CUSTOMER'S BILL IS SHOWN HERE.

A FEW MONTHS AGO, WE PRESENTED PROPOSED BILLS FOR AN AVERAGE VOLUME USAGE FOR A SINGLE FAMILY CUSTOMER WITH A THREE QUARTER INCH WATER METER.

SO 4000 GALLONS A MONTH WOULD BE WOULD THAT CUSTOMER WOULD RECEIVE A WATER BILL WITH JUST THE WATER CHARGES, JUST THE FIXED MONTHLY CHARGE AND THE WATER VOLUME RATES OF $30.91.

WITH THIS PROPOSED STRUCTURE, WE SEE THAT THE THE STRUCTURE CHANGE AND A 10% ADJUSTMENT IN REVENUE REQUIREMENTS, BUT IT'S A COST OF SERVICE ANALYSIS THAT GETS US TO THE RATES FOR RESIDENTIAL AND AND NONRESIDENTIAL CUSTOMERS.

WE SEE THAT BILL GOES UP BY $1.13 FOR THIS PARTICULAR USER, $1.13 PER MONTH, WHICH IS ACTUALLY A 3.7% CHANGE.

THEREAFTER WE WOULD IN THE CURRENT SCENARIO, WE'D APPLY THE 15% RATE INCREASE ACROSS THE BOARD.

[02:55:06]

WE COULD SHOW THE SAME FOR A COMMERCIAL OR SCHOOL.

THAT ONE INCH METER CUSTOMER USING 40,000 GALLONS A MONTH WOULD CURRENTLY PAY A BILL OF $207.20.

THEN, WITH THE NEW RATE STRUCTURE AND THE PROPOSED RATES OF 15% INCREASES, WE SEE THAT RATE WOULD GO UP BY 23.1%, AND THEREAFTER IT WOULD BE THAT 15% RATE ADJUSTMENT.

SO IT'S REALLY THIS FIRST YEAR THAT IS CRITICAL BECAUSE OF NOT ONLY THE CHANGE IN REVENUE REQUIREMENTS, BUT THE COST OF SERVICE PROCESS THAT REALIGNS COSTS WITH COST CAUSERS.

AND THEN IT ALSO REFLECTS THE RATE STRUCTURE CHANGES.

SO WE HAVE THREE THINGS GOING ON HERE.

WITH THIS NEW SCENARIO OF REDUCING THE CIP, WE GET THE SECOND SET OF BILL COMPARISONS FOR THAT SAME SINGLE FAMILY CUSTOMER.

WE SEE THAT THEIR MONTHLY BILL, THIS CUSTOMER USING 4000 GALLONS, MIND YOU, WOULD HAVE A 45 CENT PER MONTH INCREASE.

THAT WOULD BE 1.5%.

THEREAFTER, WE'D APPLY THE 10% RATE ADJUSTMENT.

COMMERCIAL AND SCHOOLS.

YOU SEE, THE SAME PROCESS FOLLOWED THAT THE CURRENT BILL WOULD BE APPROXIMATELY $35.47 HIGHER, AND THEN THEREAFTER WE WOULD APPLY THAT 10% RATE ADJUSTMENT.

WE THOUGHT IT MIGHT BE MOST USEFUL TO SHOW THAT CHANGE FROM TODAY.

SO FISCAL YEAR 24 TO THE FAST FORWARD TO THE END OF 2029.

SO AFTER THE FIVE YEAR FORECAST, UNDERSTANDING THAT IN BETWEEN YOU WILL HAVE ANOTHER RATE STUDY AND YOU'LL HAVE ADJUSTMENTS.

BUT FOR THIS PROJECTION IN OUR CURRENT OUR CURRENT.

PROPOSAL. OF THE 15% RATE ADJUSTMENTS ON WATER, WE'D SEE THAT A SINGLE FAMILY RESIDENTIAL BILL UNDER THIS PARTICULAR SCENARIO WOULD INCREASE BY 81%.

COMPARE THAT TO THE REDUCED RATE SCENARIO, AND YOU'D GET JUST UNDER 50% OF AN INCREASE OVER THE FIVE YEARS.

NOW, OF COURSE, IF A CUSTOMER HAS A LARGER METER SIZE, THE RATE ADJUSTMENT IS DIFFERENT.

IF THEY USE MORE OR LESS WATER, IT THE PERCENTAGE CHANGES.

BUT THIS IS FOR THIS PARTICULAR EXAMPLE.

BILL. AS IT STANDS ON COMMERCIAL AND SCHOOLS, WE SEE A 115% ADJUSTMENT OVER THE FIVE YEARS VERSUS A 71%.

SO IF YOU IF YOU CAN THINK ABOUT THIS, THE FIRST EXAMPLE AND PERCENTAGE I'M SHOWING IS FOR A 15% RATE ADJUSTMENT OVER FIVE YEARS.

AND THE SECOND IS A 10% RATE ADJUSTMENT OVER FIVE YEARS.

ANY SCENARIOS THAT WE LOOK AT TONIGHT THAT ARE IN BETWEEN THAT RATE ADJUSTMENT FOR WATER WOULD SEE AN IMPACT SOMEWHERE BETWEEN THESE TWO PERCENTAGES. ON THE WASTEWATER SIDE WE HAVE THAT WE'RE SHOWING THE SAME SCENARIO OF THE CIP REDUCTION AND THE RATE PROJECTIONS FROM THIS SCENARIO.

ON THE WASTEWATER SIDE, WE SEE AN AVERAGE REDUCTION IN THE CAPITAL IMPROVEMENTS OF $2.3 MILLION PER YEAR FOR THE NEXT NINE YEARS.

THE RATE PROJECTION, AGAIN, IS A 5% RATE REDUCTION EACH YEAR.

AND AGAIN, WE'RE JUST LOOKING AT THAT WASTEWATER PORTION OF THE BILL.

NO TAXES, NO NO OTHER FEES OR OTHER.

AMOUNTS THAT ARE A CUSTOMER PAYS IN THEIR MUNICIPAL SERVICES BILL.

JUST THIS IS FOCUSING ON WASTEWATER.

YOU'LL RECALL THAT FOR THIS, THE WASTEWATER RATES WERE PROPOSING AN IMPLEMENTATION OF A FIXED MONTHLY METER CHARGE, JUST LIKE ON THE WATER SIDE.

SO BY METER SIZE, THESE ARE THE PROPOSED FIXED MONTHLY METER CHARGES UNDER THIS SCENARIO.

AND THEN YOU'LL SEE THE THE INCREASES THEREAFTER.

THIS IS THAT SO IT WOULD BE 20% FOR THE FIRST TWO YEARS, THEN TEN THEN FIVE AND FIVE.

THE SEWER RATES ON THE VOLUME SIDE AGAIN REFLECT OUR PROPOSED RATE STRUCTURE REVISIONS, WHERE WE HAVE A RATE FOR RESIDENTIAL CUSTOMERS, THAT IS A SINGLE RATE PER 1000 GALLONS OF OF BUILDS WORKFLOW.

SO THIS AGAIN REFLECTS THAT THAT AMOUNT.

THEN THE CONSOLIDATION OF YOUR NONRESIDENTIAL CUSTOMERS INTO THREE CLASSES BASED ON THEIR WASTEWATER CHARACTERISTICS, THEIR FLOW CHARACTERISTICS.

WE SEE A NONRESIDENTIAL A, B AND C.

AND HERE ARE THE PROPOSED RATES UNDER THIS SCENARIO.

FOR TYPICAL OR AVERAGE BILLS.

WE FOLLOW THE SAME APPROACH THAT WE DID FOR WATER.

THE ONE DIFFERENCE YOU'LL SEE IS THAT WHEN WE LOOK AT PROPOSED BILLS FOR RESIDENTIAL CUSTOMERS, THE AVERAGE DATA THAT WE USED SHOWED THE AVERAGE

[03:00:04]

BILL VOLUME AT 4880 GALLONS, OR 4.8 K GALLONS OR THOUSAND GALLONS.

SO THAT'S A LITTLE BIT DIFFERENT THAN THE WATER SCENARIO.

BUT THIS IS WHAT WE PRESENTED PREVIOUSLY FOR A THREE QUARTER INCH RESIDENTIAL WATER METER.

FOLLOWING THAT SAME BILL COMPARISON APPROACH, WE TOOK THE CURRENT WASTEWATER BILL FOR THIS CUSTOMER $26.13.

WE APPLIED THE FOR THE CURRENT SCENARIO, MEANING THE 25% RATE ADJUSTMENTS FOR THE FIRST TWO YEARS, THEN 15%, THEN TEN, THEN FIVE. THIS IS THE SCENARIO THAT WAS PRESENTED IN THE DRAFT REPORT.

THE CHANGE PER BILL FOR A RESIDENTIAL CUSTOMER WOULD BE $12.24.

SO JUST UNDER 47% CHANGE IN THAT FIRST YEAR.

THEREAFTER IT WOULD BE THAT 20.

THE PERCENTAGE RATE INCREASES.

THAT YOU SEE HERE.

FOR A COMMERCIAL CUSTOMER.

A ONE INCH CUSTOMER WITH 17,600 GALLONS OF WASTEWATER BUILD FLOW.

YOU'LL SEE THAT THEIR BILL CURRENTLY IS JUST UNDER $100 FOR THAT WASTEWATER PORTION.

WITH THE NEW RATE STRUCTURE, THAT CHANGE WOULD BE $2.73 PER MONTH, WHICH IS A 2.7% INCREASE.

THEREAFTER, WE WOULD APPLY THOSE ACROSS THE BOARD INCREASES THROUGH 2029.

WE COMPARE THAT TO THE SCENARIO THAT I MENTIONED, THE CIP AND RATE REDUCTION SCENARIO.

SAME CUSTOMER, SAME CURRENT BILL, BUT DIFFERENT IMPACTS.

SO A LOWER IMPACT FOR THE SCENARIO NATURALLY BECAUSE WE HAVE A LOWER REVENUE REQUIREMENT FROM LOWER CAPITAL IMPROVEMENT PROGRAM.

WE ACTUALLY SEE A DECREASE IN THAT COMMERCIAL TYPICAL BILL FOR THAT FIRST YEAR, AND THEN EVERYTHING INCREASES AT THESE RATES.

USING THE SAME.

ANALYSIS WHERE WE TAKE TODAY'S BILL FOR THESE TWO CUSTOMERS.

FAST FORWARD TO 2029.

WE LOOK AT THE OVERALL PERCENTAGE CHANGE FOR SINGLE FAMILY RESIDENTIAL CUSTOMERS.

WITH OUR CURRENT PROPOSAL, THAT TOTAL BILL WOULD BE 144% ADJUSTMENT WITH THE NEW OR NOT NEW, BUT WITH THE ALTERNATIVE APPROACH THAT WE JUST THE ALTERNATIVE SCENARIO THAT WOULD BE DROPPED DOWN TO 100% ADJUSTMENT OVER FIVE YEARS, THE COMMERCIAL CUSTOMER WOULD GO FROM 71% TO 36%.

AND AGAIN, WE'RE TALKING ABOUT AT LEAST ON THE WATER SIDE ON THE OR, EXCUSE ME, ON THE WASTEWATER SIDE, WE START AT AND I'M USING THE WRONG HANDS.

WE'RE WE'RE STARTING AT THE 25% ADJUSTMENT FOR OUR CURRENT APPROACH AND DROPPING THAT TO 20%.

SO ANYTHING IN BETWEEN WOULD BE BETWEEN THESE PERCENTAGES.

SO I KNOW THAT THESE ARE LARGE PERCENTAGES.

I DON'T WANT TO GLOSS OVER THAT.

BUT WE NEED TO KEEP IN MIND ALSO, AGAIN, THAT WATER AND WASTEWATER RATES HAVE NOT BEEN ADJUSTED IN OVER FOUR YEARS.

SO THIS IS THIS IS A A REFLECTION OF CATCHING UP TO THE COSTS AND COSTS OF SERVICE.

ANY QUESTIONS ON THESE BILL IMPACTS BEFORE I MOVE ON TO THE NEXT SECTION COUNCIL.

I DON'T SEE ANY.

THANK YOU. OVER THE PAST FEW WEEKS, THERE HAVE BEEN ADDITIONAL QUESTIONS, AND NATURALLY, THE NUMBER OF SCENARIOS THAT WE COULD RUN IS INFINITE.

YOU KNOW, WE COULD CHANGE SO MANY ASSUMPTIONS, BUT WE WANTED TO ADDRESS IN THIS NEXT SECTION SOME QUESTIONS THAT CAME UP ABOUT THE CAPACITY FEES AND THAT ANALYSIS THAT WE REVIEWED AND RECEIVED DIRECTION BACK IN JANUARY AND FEBRUARY, AND THEN ALSO SOME ALTERNATIVE RATE PLANS THAT WERE SUGGESTED.

BACK IN JANUARY, WE WERE SHOWING YOU DIFFERENT CAPACITY FEE CALCULATIONS UNDER MULTIPLE SCENARIOS.

I BELIEVE WE HAD FOUR SCENARIOS ON THE WATER SIDE, AND WE WERE LOOKING AT DIFFERENT FACTORS THAT GO INTO CALCULATING CAPACITY FEES.

ONE OF THOSE FACTORS IS LEVEL OF SERVICE, WHICH MEANS HOW MUCH DOES A NEW CONNECTION, A TYPICAL NEW CONNECTION REQUIRE IN TERMS OF WATER CAPACITY IN THE CITY SYSTEM? THAT LEVEL OF SERVICE HAD TWO DIFFERENT DATA POINTS.

ONE WAS THE ACTUAL USAGE DATA FOR RECENT, YOU KNOW, FOR YOUR CURRENT CUSTOMERS.

AND WE LOOKED AT HOW MUCH DEMAND THE CITY WAS SEEING FROM THESE CUSTOMERS ON AN AVERAGE DAY AND A MAXIMUM DAY USAGE.

THE SECOND DATA POINT WHERE YOUR DESIGN STANDARDS FOR WATER CUSTOMERS THAT CURRENTLY IS IN YOUR CODE, WE KNOW THAT'S AN OUTDATED CODE.

[03:05:03]

I THINK IT HASN'T BEEN UPDATED IN A LONG TIME AND THOSE REQUIREMENTS ARE MUCH HIGHER.

SO MORE WATER REQUIRED BY A NEW CONNECTION BASED ON THOSE DESIGN STANDARDS THAN WHAT HAS ACTUALLY BEEN USED BY YOUR CUSTOMERS.

WHEN WE WERE TALKING ABOUT THE DIFFERENT CAPACITY FEE LEVELS WITH THOSE DIFFERENT LEVELS OF SERVICE, WE SHOWED YOU THE COMPARISON.

AND WHILE I DO NOT HAVE THE OPTION THAT WAS SELECTED FOR THE OR NOT SELECTED, WHILE I DON'T HAVE THE THE COMPARABLE OPTION THAT WAS INCLUDING COSTS AND PREPARING THE CITY TO PAY FOR FUTURE WATER SUPPLY PROJECTS, I DO HAVE AN OPTION THAT INCLUDES DESIGN STANDARDS WITHOUT THOSE FUTURE WATER SUPPLY PROJECTS, BUT IT STILL TELLS YOU WHAT THE RESULTING CAPACITY FEE WOULD BE.

SO IF WE FOCUS JUST ON THIS FIRST COLUMN OF THE CALCULATED CAPACITY FEE FOR WATER, WE SEE THAT ONE EQUIVALENT RESIDENTIAL UNIT, WHICH IS A TYPICAL RESIDENTIAL CONNECTION.

SO THREE QUARTER INCH WATER METER CURRENTLY PAYS $5,728 TO RECEIVE CAPACITY IN THE CITY'S WATER SYSTEM. THE CALCULATED FEE, AND THE PROPOSED FEE IS JUST OVER $8,000 FOR THAT SAME CONNECTION.

SO WE'RE PROPOSING THAT YOU INCREASE YOUR RATES QUITE SUBSTANTIALLY EVEN FOR THIS, FOR THIS PROPOSAL.

IF WE WERE TO USE DESIGN STANDARDS AS THE BASIS WITH A HIGHER, HIGHER LEVEL OF SERVICE UNDER THE DESIGN STANDARDS MEANS THAT YOU HAVE LESS CAPACITY AVAILABLE AND THAT THE FEE ITSELF IS HIGHER.

SO THAT $17,000 FEE IS CLOSE TO THE SCENARIO THAT WE WOULD SEE IF WE INCLUDED THE FUTURE WATER SUPPLY PROJECTS.

HOWEVER, IT'S AN EXAMPLE OF THE IMPACT OF USING DESIGN STANDARDS IN CALCULATING YOUR CAPACITY FEES.

CAROL, I HAVE A QUESTION HERE.

SO WE SELECTED ACTUAL DATA BECAUSE THAT WAS BASED ON WHAT WE WERE SEEING OUR CUSTOMERS UTILIZING IN TERMS OF CAPACITY.

CORRECT? THAT'S CORRECT.

MAYOR. AND DESIGN STANDARDS THAT THAT THOSE ARE THE STANDARDS THAT ARE A I GUESS ESSENTIALLY IT'S MORE THEORETICAL BECAUSE IT'S IN A CODE THAT THAT.

HOW DO I PUT THIS? THE DESIGN STANDARD IS NOT.

WHAT IS ASKED IS NOT THE BURDEN, IS NOT THE ACTUAL BURDEN THAT'S BEING PLACED ON THE SYSTEM.

THE ACTUAL BURDEN IS BASED ON ACTUAL DATA.

MAYOR, I WOULD AGREE WITH YOU IF DIRECTOR JONES HAS ANY EDITS TO THAT.

DEFINITION OF DESIGN STANDARDS.

I WOULD ASK FOR THAT. BUT I THINK THAT YOU'RE YOU'VE GOT THE RIGHT IDEA.

OKAY. ALL RIGHT.

THANK YOU. THE SECOND PART OF THIS TABLE WAS A PRELIMINARY ANALYSIS WE COMPLETED TO DETERMINE WHAT THE IMPACT OF DIFFERENT CAPACITY FEE AMOUNTS MIGHT HAVE ON ACTUALLY WHAT THE USERS OR USER RATES WOULD HAVE TO DO.

RATEPAYERS, BECAUSE WE KNOW THAT THE TIMING OF GROWTH AND THE AMOUNT OF CAPACITY, REVENUE, FEE, REVENUES THAT ARE COLLECTED EACH YEAR DOESN'T ALWAYS MATCH WHAT'S NEEDED FOR CAPACITY RELATED OR EXPANSION RELATED CAPITAL IMPROVEMENTS, THAT THE CITY WILL ALWAYS HAVE TO BE AHEAD OF THE GAME IN BUILDING THESE PROJECTS AND OBTAINING THE FUNDING, AND THEN THE WHEN THE CAPACITY FEE REVENUES ARE COLLECTED, THAT, IN ESSENCE, REIMBURSES THE SYSTEM FOR WHAT WAS PAID FOR THROUGH USER RATES. SO WE RAN THESE PRELIMINARY ESTIMATES TO SEE WHAT IMPACT WOULD VARYING OR INCREASING THE CAPACITY FEES, MAINTAINING THE SAME GROWTH ASSUMPTIONS, WHAT IMPACT THAT WOULD HAVE ON USER RATES.

AND LOOKING AT THESE DIFFERENT SCENARIOS, WE'RE COMPARING EVERYTHING TO THE CURRENT SCENARIO AND CURRENT RATE PLAN.

WE SEE THAT IF YOU WITH THE CURRENT THE CURRENT SELECTED.

CAPACITY FEE COULD POTENTIALLY REDUCE THE RATE ADJUSTMENTS AFTER THIS RATE PERIOD.

THE. A MUCH HIGHER CAPACITY FEE FOR FUTURE WITHOUT FUTURE WATER SUPPLY PROJECTS, AND USING THE DESIGN STANDARDS COULD POTENTIALLY HAVE AN IMPACT ON WHAT RATEPAYERS WOULD HAVE TO PAY, BUT NOT IN THE NEAR TERM THAT WE SEE THAT YOU COULD POTENTIALLY AND I SAY POTENTIALLY BECAUSE WITH ALL OF THE

[03:10:10]

CALCULATIONS, THESE VALUES AREN'T SET IN STONE, THEY'RE JUST PROJECTIONS.

SO WE'RE LOOKING AT POTENTIAL LOWERING OF THOSE OUTER PERIOD RATE ADJUSTMENTS BECAUSE IT WILL TAKE TIME FOR THAT CAPACITY FEE REVENUE.

IF GROWTH STAYS THE SAME, THAT WILL TAKE TIME FOR IT TO BE BUILDING UP AND BE ABLE TO BE USED FOR THE GROWTH RELATED PROJECTS.

SO AND THEN AS I MENTIONED, IN EFFECT, REIMBURSING YOUR EXISTING CUSTOMERS.

SO THE THE IMPACT IS NOT IN THE NEAR TERM AND IT'S A SIGNIFICANT INCREASE ON THE WATER SIDE FOR THAT PROJECT.

WE'VE HAD DISCUSSIONS ABOUT CONCERNS ABOUT AFFORDABILITY OF HOUSING, SO WE MIGHT WANT TO KEEP THAT IN MIND WHEN WE LOOK AT THESE VALUES.

I'D LIKE TO WALK THROUGH THE THE WASTEWATER EXAMPLE AND THEN SHOW YOU THE COMPARISON OF CAPACITY FEES ACROSS THE REGION.

WASTEWATER CAPACITY FEES.

WE LOOKED AT THE SAME PRELIMINARY ANALYSIS FOR THE EFFECT OF ALTERNATE CAPACITY FEES ON WHAT RATEPAYERS WOULD HAVE TO PAY FOR.

SO THE CURRENT REVENUE PLAN, AS I'VE MENTIONED MULTIPLE TIMES, IS THOSE TWO YEARS OF 25% ADJUSTMENTS, THEN 1510 PROJECTED THEREAFTER, THE CURRENT WASTEWATER CAPACITY FEE FOR A TYPICAL EQUIVALENT RESIDENTIAL UNIT, OR THREE QUARTER INCH WATER METER FOR A RESIDENTIAL CUSTOMER IS $3,728. THE PROPOSAL IS JUST SHY OF $4,250, AND THAT WOULD BE WITH THE CITY STARTING TO COLLECT FUNDS TO HELP PAY FOR A NEW WASTEWATER TREATMENT FACILITY.

AND THEN THE LAST OPTION AGAIN IS THAT USING THE DESIGN STANDARDS WE SEE, IT DOESN'T LOOK AS SHOCKING AS THE WATER CAPACITY FEE, BUT IS STILL NEARLY A DOUBLING OF THE CURRENT THE CURRENT CAPACITY FEE.

OUR PRELIMINARY PROJECTIONS ESTIMATE THAT YOU COULD POTENTIALLY SAVE THE RATEPAYERS DOLLARS FOR THESE HIGHER FEES OUT IN THE FUTURE, BUT NOT IN THE NEAR TERM. SO AGAIN, THESE ARE JUST PROJECTIONS.

ONE MORE COMMENT ON THE CAPACITY FEES AND THEN WE CAN DISCUSS THIS.

THE. THE SLIDE THAT YOU SEE HERE IS A THE SURVEY OF SOME PEER UTILITIES.

YOU MIGHT REMEMBER THIS SLIDE FROM MONTHS AGO.

I THINK WE ALSO PRESENTED THIS IN JANUARY, BUT IT SHOWS THE CURRENT.

CAPACITY FEES THAT I JUST MENTIONED IN 2023, AND THEY'RE STILL IN EFFECT RIGHT NOW COMPARED TO THESE OTHER UTILITIES. AND IF WE WERE TO LOOK AT THAT.

THAT ONE EXAMPLE OF A WATER CAPACITY FEE THAT IS BASED ON DESIGN STANDARDS.

THAT FEE WAS ABOVE $17,000.

THAT WOULD PUT YOU OVER THE CITY OF BOULDER, COLORADO'S CURRENT WATER FEE.

AND I KNOW THIS SAYS THIS, THIS IS FROM 2022, EFFECTIVE 2022.

WE WE DID NOT GO BACK AND UPDATE THIS FOR 2024, BUT THAT LEVEL OF FEE WOULD RAISE THE FEES, AND THE WASTEWATER FEE WOULD RAISE THE FEES ABOVE THE HIGHEST IN OUR SAMPLE HERE.

SO JUST A LITTLE PERSPECTIVE OF YOUR CAPACITY FEES COMPARED TO SOME PEERS CARE.

EXCUSE ME, CAROL, I KNOW THAT YOU WORK WITH OTHER CITIES IN ARIZONA.

I DON'T KNOW WHETHER YOU WORK WITH TEMPE, BUT.

DO YOU DO THEY NOT HAVE THE CAPITAL NEEDS THAT WE HAVE, OR WHAT IS THE REASON FOR THEIR FEES BEING SO LOW? MAYOR. WE ARE WORKING WITH TEMPE NOW, AND ANDY AND AND ZACH ARE ACTUALLY ON THAT TEAM.

SO I'VE IF ANDY OR ZACH WOULD LIKE TO SPEAK TO THAT.

YOU'D HAVE MORE FAMILIARITY.

SURE, I'D BE HAPPY TO.

YOU KNOW, WITH WITH TEMPE MAYOR, A LOT OF THE INCREASES THAT THEY SEE FOR CAPITAL, THEY'RE NOT NECESSARILY GROWTH RELATED.

THERE ARE A LOT OF INFRASTRUCTURE RENEWAL AND REPLACEMENT RELATED IMPROVEMENTS.

THEY DO HAVE INTENTS TO BRING BACK ON A WASTEWATER PLANT THAT THEY HAD MOTHBALLED FOR A PERIOD OF TIME, YOU KNOW, IN LIGHT OF GROWTH AND DEVELOPMENT.

BUT A LOT OF THEIR CIP IS RENEWAL AND REPLACEMENT.

BUT THE OTHER THING THAT TEMPE DOES IS THEY FINANCE A SIGNIFICANT AMOUNT OF THEIR CAPITAL AND PROGRAM IMPROVEMENT PROGRAM WITH DEBT.

THEY'LL USE VARIOUS TYPES OF DEBT INSTRUMENTS, EXCISE TAX BONDS.

WITH, WITH BONDS, OTHER FUNDING SOURCES FOR THEIR CIP.

BUT THEY FUND A SIGNIFICANT AMOUNT WITH DEBT.

[03:15:03]

AND I THINK THAT PLAYS INTO HOW THEY ALSO CALCULATE THEIR FEES, WHICH AREN'T NECESSARILY CAPACITY FEES, BUT THEY FOLLOW THE TRADITIONAL IMPACT FEE LEGISLATION, WHICH IS A LITTLE BIT DIFFERENT IN TERMS OF HOW THEY'RE CALCULATED.

SO THEY'RE A LITTLE BIT MORE RESTRICTIVE AND TIED TO SPECIFIC IMPROVEMENTS, WHICH IS ALSO A BIT LIMITING ON THE FEES.

SO THE COMBINATION OF THAT AND DEBT AND THE RENEWAL AND REPLACEMENT WAITING OF THEIR CAPITAL PLAN, THAT'S WHY THEIR FEES ARE A LITTLE BIT LOWER.

AND THE SENSE YOU'RE WORKING WITH THEM.

ARE THEY ARE THEY DOING A RATE STUDY RIGHT NOW AND ARE THEY CONTEMPLATING RAISING THEIR RATES? YES AND YES.

THE INCREASES THAT THEY'RE LOOKING AT FOR THE WATER SYSTEM ARE ACTUALLY VERY COMPARABLE TO THE ONES THAT YOU'RE LOOKING AT, IN FACT, SLIGHTLY HIGHER FOR ABOUT A FIVE YEAR PERIOD.

AND WASTEWATER THEY'RE A LITTLE BIT LOWER, BUT THEY'VE BEEN DOING A FEW RATE ADJUSTMENTS OVER THE LAST COUPLE OF YEARS THAT HAVE BEEN PRETTY LARGE AS WELL.

SO THEY'VE, THEY'VE BEEN A LITTLE BIT MORE ACTIVE ON RATES THE LAST FEW YEARS THAN YOU HAVE, BUT THEY STILL HAVE A LOT OF THE SAME CHALLENGES IN THEIR NEAR TERM SIPS, ESPECIALLY IN THE WATER SIDE.

TO DEAL WITH THE INFRASTRUCTURE ISSUES.

SEWER, THERE MAY BE A LITTLE BIT LOWER ON THE INCREASES, BUT STILL PRETTY COMPARABLE.

THANK YOU. WELCOME.

IF THERE AREN'T ANY OTHER QUESTIONS, I'LL MOVE ON TO THE NEXT SLIDE.

OVER THE PAST FEW WEEKS, WE'VE WE'VE HEARD SOME OTHER REQUESTS FOR ADDITIONAL SCENARIOS.

AND IT'S IT'S ALL UNDERSTANDING TO TRY TO FUND THE CAPITAL IMPROVEMENTS AND MINIMIZE THE IMPACT ON CUSTOMERS.

ONE OF THE REQUESTS WAS TO ACTUALLY SEE IF WE COULD DEFER SOME OF THE CIP.

FROM THIS FIRST FIVE YEARS AND PUSH IT OUT TO THE THE NEXT 4 OR 5 YEARS.

WE RAN A SCENARIO WHERE WE LOOKED AT DEFERRING THAT CAPITAL IMPROVEMENT PROGRAM AND EVENING IT OUT, RATHER THAN JUST CUTTING IT ACROSS THE BOARD.

WE LOOKED AT SOME OF THE RATE PROJECTIONS.

I'M I'M REUSING A SLIDE, RECYCLING A SLIDE THAT YOU'VE ALREADY SEEN FROM THAT CIP REDUCTION SLIDE.

AND IF YOU COULD FOCUS ON THE SCENARIO FOR WATER WHERE WE'RE LOOKING AT THE ARROW HERE AND THE YELLOW BOX.

IN THIS CASE, WE CAN LOOK AT A 5% REDUCTION IN THOSE RATES FROM 50% TO 10% PER YEAR FOR THE NEXT FIVE YEARS BY REDUCING THE CIP EXECUTION PERCENTAGE TO 50%.

SO JUST CUTTING THAT CIP IN HALF AND THEN PUSHING IT TO THE OUTER YEARS, PUSHING THAT CIP THAT WE'RE CUTTING IN THESE FIRST FIVE YEARS TO 2030 THROUGH 2033.

GRANTED, OUR WE DON'T HAVE A FULL TEN YEARS OF FORECAST.

WE ONLY HAVE NINE. SO IT'S A IT'S NOT A PERFECT TEN, BUT WE HAVE THAT ASSUMPTION THAT IF YOU DELAY YOUR CIP, WE KNOW THAT ESCALATION HAS AN EFFECT AND THAT THE TOTAL COST INCREASES.

IN THIS CASE, WE HAVE PUSHED THE CIP AGAIN TO THOSE OUTER YEARS FOR WATER.

BUT WE SEE THAT WE WOULD HAVE TO FUND MORE OF THE PROJECT WITH DEBT, AND THAT WOULD PUSH THAT PERCENTAGE UP TO 40% WITH THIS SAME THE SAME CAPITAL.

AND WHAT YOU DON'T SEE HERE IS THAT THE OUTER YEARS, YOU WOULD NEED TO CARRY THAT 10% RATE ADJUSTMENT FORWARD.

SO YOU'D HAVE TO GO BEYOND 2029 WITH 10% RATE ADJUSTMENTS IN ORDER TO KEEP AND FUND THE THE REMAINING.

OR THE DEFERRED CAPITAL IMPROVEMENTS.

CAROL, CAN I JUMP IN WITH ANOTHER QUESTION? AND IT IS.

WE COULD POSSIBLY ALSO BE LOOKING AT ADDITIONAL RATE INCREASES, RIGHT.

IN ADDITION TO THAT 10%.

SO WE PUSH IT OUT.

WE CARRY FORWARD THAT 10% RATE INCREASE.

IN THE MEANTIME, WE COULD ALSO BE CONTEMPLATING ADDITIONAL RATE INCREASES FOR ALL THE REASONS THAT WE'RE TALKING ABOUT RATE INCREASES NOW.

MAYOR. THAT'S CORRECT.

THIS IS THIS IS HOLDING ALL OF OUR OTHER ASSUMPTIONS CONSTANT.

YOU KNOW, IT DOES NOT INCLUDE ADDITIONAL WATER SUPPLY PROJECTS.

IT JUST INCLUDES THE CIP THAT WE HAVE RIGHT NOW FROM 2025 TO 2033, JUST DEFERRED SO THAT THAT AMOUNT OF PROJECT COST FROM 2025 TO 2029 IS ESSENTIALLY CUT IN HALF AND THEN PUSHED TO THE OUTER YEARS.

[03:20:02]

SO TRYING TO SPREAD THAT COST OUT OVER MORE YEARS.

BUT YOU'RE RIGHT. WE'RE WE'RE NOT WE DON'T HAVE THE INSIGHT INTO OTHER INCREASES THAT OR OTHER PROJECTS THAT COULD COME UP PAST 2029.

THANK YOU. THERE WAS ONE.

OH, SORRY. SORRY, MAYOR.

THERE WAS ONE MORE SCENARIO.

OKAY. I DON'T HAVE A PARTICULAR SLIDE, BUT IF YOU RECALL THE THE SCENARIO THAT WE DISCUSSED WHERE WE HAVE THE THE.

REDUCTION OF THE CAPITAL IMPROVEMENT PROGRAM, SO FUNDING LESS OF THE CAPITAL IMPROVEMENT PROGRAM FOR WATER, BUT ALSO REDUCING THE RATE TO THAT 10% PER YEAR AND ASSUMING A MORE A DIFFERENT COST ESCALATION FACTOR.

SO A COST ESCALATION FACTOR OF SAY, 3% PER YEAR RATHER THAN 3.5 THAT WE ARE ASSUMING, OR 2.4 OR ANY NUMBER IN BETWEEN, A 3% FACTOR ASSUMING THE SAME 1% GROWTH, A 3% ESCALATION FACTOR, AND THEN A REDUCTION IN THE CIP THAT WOULD RESULT IN THE 10% RATE ADJUSTMENTS FOR THE FIRST FIVE YEARS.

THAT SCENARIO ESSENTIALLY WOULD HELP YOU RECOVER OR FUND A TOTAL OF 3 MILLION MORE DOLLARS OVER THE NINE YEAR PERIOD.

SO THE THE CIP OR THE COST ESCALATION ADJUSTMENT DIDN'T HAVE AS DRAMATIC A AN IMPACT ON OUR RESULTS AS WE AS WE MAY EXPECT THAT IT'S IT'S STILL IT'S BASICALLY A SIMILAR SCENARIO TO WHAT WE SAW WHEN WE'RE.

REDUCING THE CAPITAL IMPROVEMENT PROGRAM BY APPROXIMATELY 20% ACROSS THE BOARD.

ANY OTHER QUESTIONS ABOUT THIS SECTION? I DON'T SEE ANY.

KHMER. THE NEXT PIECE THAT I'D LIKE TO DISCUSS IS COMMENTS.

AND NATURALLY, WHENEVER WE SEE SOME SIGNIFICANT IMPACTS ON OUR ON OUR COMMUNITY, THERE ARE A LOT OF QUESTIONS.

THE QUESTIONS THAT HAVE BEEN SENT IN RECENTLY CAN BE CONDENSED TO DIFFERENT TOPICS, AND THE BULK OF THE COMMENTS HAD TO DO WITH EQUITY AND RATE DESIGN.

EQUITY IS REALLY IMPORTANT AND ESPECIALLY TO ME, I, I LOOK AT AND CONSIDER AFFORDABILITY AND AFFORDABILITY METRICS AND A LOT OF THE WORK THAT I DO. WHEN WE IF YOU RECALL, WHEN WE WERE LOOKING AT COUNCIL'S PRIORITIES FOR RATES, AFFORDABILITY OF SERVICE WAS ONE OF YOUR PRIORITIES. SO WE INCORPORATED ELEMENTS OF EQUITY AND AFFORDABILITY INTO THE MIX OF OUR RATE STRUCTURE.

ZINS. ONE OF THE COMMENTS WAS REGARDING FIXED METER CHARGES VERSUS VOLUME RATES.

YOU MIGHT REMEMBER THAT WHEN WE WERE TALKING ABOUT ADJUSTMENTS TO THAT BALANCE BETWEEN YOUR FIXED MONTHLY METER CHARGES AND YOUR VOLUME RATES THAT YOU HAVE, YOU HAVE TO BALANCE YOUR PRIORITIES BECAUSE HIGHER FIXED CHARGES RESULT IN MORE REVENUE STABILITY.

BUT THEY COULD.

IT COULD CAUSE MORE AFFORDABILITY ISSUES, MORE EQUITY ISSUES, AND ALSO AN INABILITY FOR CUSTOMERS TO CONTROL THEIR BILL WITH WATER USAGE, WHICH CONFLICTS WITH WATER CONSERVATION GOALS BECAUSE A LOWER WATER METER CHARGE AND A HIGHER VOLUME RATE WOULD ENCOURAGE MORE CONSERVATION. SO IF YOU RECALL, THE PROPOSED RATE STRUCTURE FOR WATER LOWERED THE AMOUNT OF REVENUE RECOVERED THROUGH THAT FIXED MONTHLY CHARGE AND INCREASED THE AMOUNT OF REVENUE THROUGH THE VOLUME RATES.

WE ALSO HAVE LOWERED THE THE VOLUME WELL, IT DOESN'T LOOK LOWER BECAUSE OF THE INCREASE IN REVENUE NEEDED, BUT THE FIRST TWO TIER RATES ARE CLOSER TOGETHER THAN THAN CURRENTLY.

AND THEY THEY'RE INTENDED TO RECOVER THE COSTS OF INDOOR WATER USAGE FOR DIFFERENT HOUSEHOLD SIZES.

THE TOP TWO TIERS ARE INTENDED TO RECOVER THE COSTS OF IRRIGATING AND THOSE HIGHER WATER USES.

SO THE. WE FEEL THAT THE CURRENT WATER PROPOSED WATER RATE STRUCTURE ACCOMPLISHES OR ENHANCES EQUITY ACROSS CUSTOMERS AND WITHIN CUSTOMER CLASSES.

ANOTHER COMMENT WAS REGARDING RATES FOR HOUSEHOLDS THAT ARE MAYBE TINY HOUSES OR HOUSES THAT DON'T USE AS

[03:25:04]

MUCH WATER, AND THOSE WOULD BE PERHAPS SMALLER THAN A THREE QUARTER INCH WATER METER SIZE.

THE CITY USED TO HAVE 5/8 INCH METERS, AND WHAT WE UNDERSTAND IS THOSE AREN'T USED ANYMORE.

BUT THE, THE AND ALSO THE SECOND HOME ISSUE THAT IF SECOND HOMES ARE RECEIVING THE BENEFITS OF CUSTOMERS WHO LIVE YEAR ROUND IN THE AREA THAT THE SECOND HOME OWNERS ONLY PAY FOR THEIR WATER USAGE PORTION OF THEIR BILLS WHEN THEY ARE PRESENT. BUT ON THAT SIDE, I'M GOING TO ADDRESS THE SECOND HOME COMMENT BEFORE I GO BACK TO THE SMALLER METER SIZES.

BUT THE SECOND HOME ISSUE IS WE FEEL THAT THE PROPOSED WASTEWATER RATE STRUCTURE ADDRESSES THAT ISSUE, THAT THE IMPLEMENTATION OF A FIXED MONTHLY METER CHARGE ON THE WASTEWATER SIDE RECOVERS COSTS OF ALMOST LIKE AN AVAILABILITY TO SERVE CHARGE THAT THE CUSTOMER MAY NOT LIVE YEAR ROUND IN THAT HOME, BUT THEY HAVE TO PAY THAT FIXED MONTHLY METER CHARGE FOR BEING ABLE TO RECEIVE SERVICE AND FOR THE SERVICE MAINTAINED. SO THE THE THIS TYPE OF COMPLEXITY IN THE TYPE OF USER, WHETHER IT'S A SECOND HOME OR A SMALLER METER SIZE, IN ADDITION TO ALL THIS REQUIRES DATA.

IT'S DIFFICULT TO IDENTIFY SECOND HOMES.

AND THERE IS A LOT OF ROOM FOR, FOR MAYBE DISHONESTY HERE.

BUT ALSO TRACKING THIS INFORMATION WOULD NEED TO BE A CONCERTED EFFORT IN ORDER TO EFFECT OR IMPLEMENT A DIFFERENT RATE. AND THE SMALLER METER SIZE.

I WANTED TO BRING UP THAT I'VE HAD THIS EXPERIENCE IN COLORADO.

CASTLE ROCK WATER SOUTH OF DENVER ACTUALLY IMPLEMENTED A LESS THAN A TYPICAL METER SIZE CHARGE, AND WHAT ENDED UP HAPPENING OVER THE PAST 4 OR 5 YEARS IS THAT WHILE DEVELOPERS GOT A DISCOUNT FOR PUTTING IN A SMALLER METER OR AND ASSUMING THAT THE HOMEOWNER WOULD USE LESS WATER.

THE DEVELOPERS GOT A DISCOUNT ON THEIR CAPACITY FEE.

BUT ONCE THE HOMEOWNER WAS LIVING IN THE HOUSE, THE ACTUAL WATER USE DATA DIDN'T REFLECT LOWER WATER USAGE.

SO THE THE UTILITIES STRUGGLING WITH THIS TYPE OF STRUCTURE.

SO IT CAN BE DONE.

IT JUST NEEDS TO BE SUBSTANTIATED BY BY DATA IN MY OPINION.

THE THIRD COMMENT THAT WE SAW WAS THAT THAT SOMEONE HAS BEEN READING THE US WATER ALLIANCE AND STANTEC REPORT ON AN ALTERNATIVE PRICING STRUCTURE.

AND I'D LIKE ANDY TO TALK A LITTLE BIT ABOUT THIS BECAUSE HE WAS ONE OF THE AUTHORS.

SO, ANDY, IF YOU COULD EXCUSE ME BEFORE WE JUMP INTO THAT COUNCIL MEMBER MCCARTHY HAD A QUESTION OR A COMMENT.

BUT THANK YOU, MAYOR.

YOU ACTUALLY KIND OF TOUCHED ON THIS AFTER I PUT MY HAND UP, BUT JUST TO REPEAT IT.

IF WE HAVE A HIGHER FIXED CHARGE THAT MAKES THE PEOPLE THAT ARE ONLY UP HERE, YOU KNOW, THREE MONTHS A YEAR OR SOMETHING PAY ALL YEAR LONG.

SO THEY'RE PAYING WHAT THEY SHOULD PAY.

IS THAT MAINTENANCE OF THE SYSTEM.

SO THAT'S THAT'S.

AND I REALIZE THE TRADE OFF BETWEEN FIXED CHARGE AND USAGE BASED CHARGES IS COMPLEX. BUT IF WE WANT TO HAVE THE, YOU KNOW, PEOPLE THAT ARE UP HERE THREE MONTHS A YEAR TO PAY THEIR FAIR SHARE, THEN WE WOULD KEEP MUCH OF THE EXPENSE ON THE FIXED CHARGE SIDE.

THANK YOU. THANK YOU, MAYOR AND COUNCIL MEMBER MCCARTHY.

DO WE WANT TO DISCUSS THAT ANY FURTHER OR GO ON TO THE THE NEXT POINT? WELL, I THINK MAYBE REITERATING THE POINTS THAT YOU MADE, THAT IT'S MADE UP WITH THE SEWER CHARGE AND YOU KNOW, THE POINTS THAT YOU MADE.

WHAT WERE THE POINTS THAT YOU MADE? SO, MAYOR, THE THE ON THE SEWER SIDE, WITH THE IMPLEMENTATION OF A FIXED MONTHLY METER CHARGE WHERE WE'RE CHARGING ALL HOMES, ALL CUSTOMERS FOR A FIXED PORTION OF THE THE COST, MAINTENANCE AND DEBT SERVICE AND CUSTOMER SERVICE, REGARDLESS OF USAGE. ON THE WATER SIDE, THEY STILL PAY THAT.

BUT WE DID IN THE IN THE SELECTED SCENARIO FOR RATE DESIGN ON WATER, WE DID COME TO A CONCLUSION FOR LOWERING THE

[03:30:03]

WATER FIXED MONTHLY CHARGE AND RAISING THE THE VOLUME RATES.

SO WE WERE LOOKING AT MORE OF A, AN EQUITY AND A WATER CONSERVATION FOCUS RATHER THAN CHARGING THOSE FOLKS THAT MIGHT BE MIGHT NOT BE TAKING ADVANTAGE OF THE SYSTEM YEAR ROUND.

OKAY. THANK YOU. CARRY ON.

THANK YOU, MAYOR. SO, ANDY, IF YOU WANTED TO TALK ABOUT THE ALTERNATIVE PRICING STRUCTURE THAT YOU WORKED ON IN THAT PILOT STUDY.

ABSOLUTELY. YEAH. THAT WAS A PILOT INITIATIVE THAT WE DID WITH THE US WATER ALLIANCE.

THAT WAS REALLY AS WE CAME OUT OF THE PANDEMIC, LOOKING AT WAYS AS PART OF THE ALLIANCE TO STRATEGIES OF TRYING TO HELP COMMUNITIES AND UTILITIES RECOVER STRONGER FROM THE PANDEMIC, LOOK AT WAYS TO ALLOCATE COSTS POTENTIALLY DIFFERENTLY.

THAT CREATED MORE AFFORDABLE OUTCOMES FOR THOSE THAT WERE CURRENTLY SEEING HIGHER WATER BURDENS IN THEIR BILLS.

BY LOOKING AT DIFFERENT PRICING MODELS AND NOT NECESSARILY RELYING ON ASSISTANCE PROGRAMS FOR FOLKS TO IDENTIFY, QUALIFY FOR, AND TO SUBMIT TO RECEIVE SOME ASSISTANCE WITH AND WONDERING IF THAT WOULD BE A MORE EFFECTIVE WAY TO YIELD SOME ASSISTANCE TO THOSE MOST IN NEED.

AND SO WE ACTUALLY WORKED WITH DATA FOR A COUPLE OF DIFFERENT UTILITIES.

AND THE REPORT IT FOCUSED ON THE DATA FOR CINCINNATI WATER WORKS IN OHIO.

LOOK AT THE POSSIBILITY OF USING PROPERTY CHARACTERISTICS AS A BASIS OF ALLOCATING ALL OR A PORTION OF SOME COST OF SERVICE.

SO WE LOOKED AT SUCH THINGS AS PROPERTY VALUE, LOT SIZE, BUILDING AREA FRONTAGE, FEET, NUMBER OF BAD BATHROOMS. TO BASICALLY IDENTIFY, YOU KNOW, IF THERE ARE CORRELATIONS BETWEEN ALL OF THOSE THINGS AS WELL AS INCOME AND WATER USE THAT WE COULD TIE TO CERTAIN ASPECTS OF PROVIDING UTILITY SERVICE. FOR INSTANCE, PUBLIC FIRE PROTECTION IS REALLY NOT NECESSARILY A FUNCTION OF METERED WATER USE PER SE.

THAT COST OF A WATER UTILITY IS REALLY ASSOCIATED WITH HAVING WATER AVAILABLE TO FIGHT FIRES THAT PROTECT PROPERTY AND LIVES FROM LOSS.

AND SO MAYBE THERE IS A DIFFERENT BASIS FOR ALLOCATING THAT AS OPPOSED TO THE TRADITIONAL, YOU KNOW, METER SIZE AND OBSERVED WATER USAGE.

SAME COULD BE SAID OF MAYBE DISTRIBUTION SYSTEM COST, THE LOCAL LINES THAT CONNECT INDIVIDUAL RESIDENCES AND BUSINESSES TO THE UTILITY SYSTEM.

MAYBE THAT COULD BE APPORTIONED BASED ON FRONTAGE, FEET OR OTHER CHARACTERISTICS OF THE PROPERTY TO DISTRIBUTE THOSE PORTIONS OF SYSTEM COST.

AND SO THE PILOT SOUGHT TO EXPLORE THOSE POTENTIAL OPPORTUNITIES TO SAY, WELL, WHAT IF WE TOOK THOSE COSTS AND MAYBE HANDLED THEM THROUGH A DIFFERENT PRICING STRUCTURE? THAT WAS BASED ON THOSE PROPERTY CHARACTERISTICS.

AND WITH CINCINNATI, THEY WERE VERY DATA RICH.

THEY HAD A BILLING SYSTEM THAT HAD PREMISE IDS OR PROPERTY IDS SO THEY COULD READILY LINK OR JOIN ALL THOSE PROPERTY CHARACTERISTICS WITH THEIR BILLING INFORMATION.

THEY ALSO HAD ALL THEIR NEIGHBORHOODS MAPPED INTO THE BILLING SYSTEM AS WELL.

SO WE WERE ABLE TO THEN UNDERSTAND HOW THESE INDIVIDUAL ACCOUNTS AND, AND ADDRESSES FIT INTO DIFFERENT NEIGHBORHOODS THAT WE WERE THEN ABLE TO GROUP INTO EACH OF THE CENSUS TRACTS, SO WE COULD REALLY EVALUATE ALL OF THESE POINTS OF TRIANGULATION TO SEE WHICH OUTCOMES HAD THE MOST IMPACT.

IN THE REPORT, WE FOUND THAT, YOU KNOW, MANY OF THESE PROPERTY MEASURES, YOU KNOW, WOULD HAVE A POSITIVE IMPACT TO AFFORDABILITY.

AND WE CHARACTERIZED SOME OF THESE AS POSITIVE AND NEGATIVE EQUITY OUTCOMES.

POSITIVE EQUITY OUTCOMES WERE WHERE THE BILL WENT DOWN FOR NEIGHBORHOODS THAT HAD INCOMES THAT WERE LESS THAN THE CITY AVERAGE, OR WHEN THE BILLS WENT UP IN AREAS THAT HAD INCOMES THAT WERE GREATER THAN THE CITY AVERAGE, AND NEGATIVE OUTCOMES WERE THE INVERSE OF THAT.

AND WE FOUND THAT THERE WASN'T A PERFECT SOLUTION.

THERE WERE OUTLIER CONDITIONS FOR MANY NEIGHBORHOODS UNDER VARIOUS METHODOLOGIES, BUT WE DID FIND THAT SOME OF THESE PROPERTY BASED CHARACTERISTICS HAD SOME MERIT, AND WE FOUND THAT ALL OF THEM YIELDED MORE POSITIVE EQUITY OUTCOMES THAN NEGATIVE ONES.

BUT WE REALIZED THAT ALL OF THESE METHODS AND IDEAS WOULD NEED A LOT OF VETTING FOR IMPLEMENTATION BY ANY AGENCY TO CONSIDER THEIR OWN UNIQUE LEGAL ENVIRONMENT.

BECAUSE IT'S VERY DIFFERENT ACROSS THE STATES IN THE UNITED STATES AS WELL AS THE PROVINCES IN CANADA.

IN TERMS OF YOUR LEGAL ENVIRONMENT, WHAT DATA YOU HAD AVAILABLE, WHICH PROPERTY CHARACTERISTICS, AND WHAT COST YOU MAY USE TO INCLUDE IN THIS MECHANISM, AND IS IT A SEPARATE COST MECHANISM OR A NEW RATE THAT YOU PUT ON THE BILL? OR IS IT MAYBE JUST A PORTION OF HOW YOU COULD ALLOCATE COST BETWEEN AND WITHIN CUSTOMER CLASSES, BUT YOU STILL BILL BASED ON YOUR TRADITIONAL METER SIZE AND USAGE RATES. SO THERE'S A NUMBER OF AREAS THAT WERE IDENTIFIED THAT SHOWED A LOT OF PROMISE, BUT ALSO A LOT OF EXPLORATION THAT WAS STILL NEEDED FOR EACH INDIVIDUAL UTILITY TO

[03:35:04]

CONSIDER BEFORE GOING DOWN THESE ROADS.

AND SO I THINK THAT'S THAT'S WHY THE NEXT SET OF BULLETS IS PRETTY IMPORTANT FOR A LOT OF THESE FRONTS, IS THAT THERE'S A LOT OF KIND OF FEQUET AND IMPLEMENTATION CONSIDERATION WORK THAT NEEDS TO BE DONE TO INVESTIGATE SOME OF THESE AREAS.

IN SOME INSTANCES, THEIR POLICY DECISIONS, SUCH AS THE FIXED AND VARIABLE.

BUT SOME OF THESE AREAS ABOUT, YOU KNOW, LOOKING AT SMALLER HOMES OR SEASONAL OWNERSHIP, PROPERTY OWNERSHIP OR THESE PROPERTY BASED MECHANISMS OR EVEN CAPACITY FEES BASED ON HOME SIZE THEY'RE PRETTY UNIQUE.

THERE'S NOT A VERY BROAD BASE OF INDUSTRY KNOWLEDGE AND APPLICATION THAT WE CAN.

DRAW LESSONS LEARNED FROM AND AND USE AS FOUNDATIONAL ELEMENTS.

SO THERE'S THERE'S A LOT THAT NEEDS TO BE INVESTIGATED HERE BEFORE MOVING FORWARD WITH SOME OF THESE.

SO I THINK THAT'S WHY, YOU KNOW, OUR THOUGHTS AND AND CAROL'S LABELING ON THE SLIDE WAS CHARACTERIZING MANY OF THESE AS FORWARD LOOKING OPPORTUNITIES THAT YOU COULD INVEST BETWEEN NOW AND THE NEXT COST OF SERVICE STUDY.

AS SHANE AND JONES ARTICULATED AT THE LAST MEETING, TO START SEEING WHAT DATA YOU HAVE AVAILABLE, DOING SOME ANALYSIS OF THAT DATA TO SEE WHAT OF THESE OPTIONS, MAYBE HAVE SOME MERIT OR HAVE SOME POTENTIAL.

BUT THERE'S A LOT TO WORK THROUGH, NOT JUST ON THE DATA SIDE, BUT LIKE CAN YOUR BILLING SYSTEMS ACCOMMODATE IT? WHAT PROCESS AND WORKFLOWS WOULD YOU NEED TO CHANGE TO NOT ONLY COLLECT THE DATA, BUT TO MAINTAIN IT? AND WHAT SORT OF, YOU KNOW, LEGAL ANALYSIS WOULD NEED TO BE DONE TO MAKE SURE WE'RE OPERATING WITHIN BOUNDS OF, YOU KNOW, STATE CODE AS WELL AS OUR OWN BOND INDENTURE REQUIREMENTS OR TRUST AGREEMENTS.

SO THERE'S A NUMBER OF THINGS THAT WOULD NEED TO BE EXPLORED BEFORE, YOU KNOW, GOING DOWN ANY ONE OF THESE AREAS FOR THE REASONS I MENTIONED.

THANK YOU.

COUNCIL DO YOU HAVE ANY QUESTIONS OR COMMENTS TO THAT? OKAY. THANK YOU.

WELCOME. THANK YOU ANDY.

THANK YOU MAYOR.

NOW FOR THE PART YOU'VE ALL BEEN WAITING FOR.

WE'D LOVE TO HEAR YOUR THOUGHTS ON THE SCENARIOS AND DIRECTION FORWARD.

TO FRAME HOW WE PROPOSE TO TALK THROUGH THESE.

JUST GOING BACK TO THOSE SCENARIOS THAT WE DISCUSSED GROWTH ESCALATION, DEBT FINANCING, CAPITAL IMPROVEMENT, PROJECT FUNDING, WE PRESENT THIS MATRIX FOR YOUR CONSIDERATION.

SO IT'S A MATRIX OF FACTORS THAT WE HAVE GONE OVER OVER THE PAST, WE'LL SAY LAST WEEK AND THIS WEEK.

BUT THIS IS ALL IT'S A COMPILATION OF ALL OF THOSE SCENARIOS THAT WE'VE RUN AND DISCUSSED WITH YOU.

WE HAVE THE FACTORS ON THE LEFT.

SO GROWTH ESCALATION, TOTAL CIP FUNDING AND DEBT FINANCING AS A PERCENTAGE OF CIP.

THEN WE HAVE THESE FACTORS LOW MEDIUM AND HIGH LOW MEANING THE THE ASSUMPTIONS OF THE FACTORS AT THE LOW END, OF COURSE.

AND MEDIUM IN THE MIDDLE AND HIGH AT THE, AT THE TOP END.

SOME OF THESE ARE SOME OF THE LOW MEDIUMS AND HIGHS ARE WHAT WE PRESENTED IN OUR CURRENT DRAFT REPORT.

AND THAT CURRENT PROPOSAL FOR THE RATE ADJUSTMENTS AND SOME ARE ARE DIFFERENT.

AND ONE EVEN FOR THE TOTAL CIP FUNDING FOR WATER AND WASTEWATER.

WE DIDN'T HAVE A MID OR MEDIUM RANGE EXECUTION PERCENTAGE.

SO WE THOUGHT, WELL, 90% OF THE CIP EXECUTED WOULD BE A GOOD MEDIUM FACTOR.

WHAT WE'D LIKE TO DO IS TALK THROUGH YOUR YOUR DIRECTION FOR THESE FACTORS.

YOU CAN MIX AND MATCH FACTORS.

YOU KNOW, YOU COULD ALSO SUGGEST DIFFERENT FACTORS THAT WE WOULD COMBINE INTO A SCENARIO FOR MOVING FORWARD, FOR A GOOD SOLUTION TO ADJUST YOUR RATES, TO FUND YOUR CAPITAL IMPROVEMENT PROGRAM, AND TO MOVE WATER SERVICES ON ONWARD.

SO IF THAT DOES THAT MAKE SENSE OF WHAT WE ARE, WHAT THIS TABLE DOES? I DO HAVE THE SUBSEQUENT TABLES THAT WE SAW.

SO FOR EXAMPLE, FOR GROWTH, THE FOLLOWING TABLES, WHAT YOU'VE SEEN BEFORE FOR ALL OF THE GROWTH SCENARIOS, THE GROWTH SCENARIOS IN THIS CASE WOULD SHOW DIFFERENT IMPACTS ON THE ANNUAL RATE INCREASES.

AND WHILE HOLDING THE TOTAL AMOUNT OF CIP FINANCED WITH DEBT CONSTANT AND HOLDING THE TOTAL CIP CONSTANT FOR WATER AND WASTEWATER.

I HAVE ANOTHER TABLE FOR COST ESCALATION IMPACT.

AND AGAIN OUR CURRENT PROJECTION IS CONSIDERED THE MIDDLE PROJECTION HERE.

SO WE HAVE THE MIDDLE PROJECTION OF RATE OF EXCUSE ME COST ESCALATION.

I WANT TO ALSO MAKE ONE SIDE COMMENT THAT THAT WE UNDERSTAND BETTER THAT YOUR WHAT THE PRIMARY DRIVER IS FOR OUR CURRENT COST ESCALATION ASSUMPTION IS YOUR COMPENSATION ADJUSTMENT FOR YOUR FOR YOUR EMPLOYEES THAT

[03:40:07]

MANAGEMENT SERVICES USES 3.5% AS THE STANDARD OF COST ESCALATION IN THE FIVE YEAR PLAN.

IT HAS USED THAT BECAUSE THE COST ADJUSTMENTS OF THE SALARY ADJUSTMENTS FOR YOUR EMPLOYEES DUE TO A PAY FOR PERFORMANCE FOR STEP INCREASES, CAN RANGE ANYWHERE FROM 3 TO 4%.

SO THAT 3.5% CAPTURES THAT.

THE 2.4% IS THE THE LOWER VALUE THAT WAS SUGGESTED.

AND THEN 4.5 IS JUST WHAT IF WE'RE WE'RE OFF AND WE HAVE ANOTHER SITUATION THAT WE HAD IN THE PAST.

SO SO WE'RE SHOWING THOSE THREE VERSIONS HERE.

THEN, AS A REMINDER AGAIN, THE REDUCED CIP FUNDING IMPACT AGAIN SHOWS A LOW IMPACT, WHICH OF COURSE IS THE THIS SCENARIO OF REDUCING THE WATER CIP BY 35.4 MILLION AND THE WASTEWATER CIP .2.

4 MILLION AND THE, THE OH, AM I GETTING THESE BACKWARDS? I PROBABLY SHOULD GO BACK.

FOR CIP FUNDING, RIGHT? THE LOW IS A LOW EXECUTION RATE AND THE HIGH IS 100% EXECUTION RATE.

THIS SHOWS US THE THE RESULTING SIP WITH THOSE REGIONS AND THEN FINALLY THE INCREASED BORROWING IMPACT.

WE HAVE LOW, MEDIUM AND HIGH OPTIONS AS WELL.

AND THE IMPACT ON RATES.

I'M GOING TO GO BACK TO THIS.

THIS MATRIX.

I'D LOVE TO HEAR YOUR THOUGHTS, WHETHER THAT MAKES SENSE.

IF YOU HAVE ANY QUESTIONS ABOUT WHAT YOU'VE SEEN, IS THERE ANYTHING YOU WOULD THAT YOU HAVEN'T SEEN THAT YOU'D LIKE TO SEE? WE COULD START AT THE TOP, IF YOU LIKE, OR START WITH WITH ANYONE WHO WOULD LIKE TO.

TO START.

COUNCIL. THOUGHTS? QUESTIONS. AND I HAVE SOME PUBLIC COMMENT AS WELL.

COUNCIL MEMBER HOUSE.

THANK YOU. MAYOR.

I THINK LOOKING AT THIS MATRIX OF FACTORS FOR DIRECTION.

MY TENDENCY FOR THE GROWTH FACTOR JUST STARTING WITH THAT ONE IS TO LOOK SOMEWHERE BETWEEN THE LOW AND MEDIUM.

LOOKING AT OUR HISTORY OF GROWTH OVER THE PAST.

MAYBE TWO DECADES.

I WAS JUST LOOKING AT A REPORT THAT WAS SHOWING THAT BETWEEN, I THINK 2020 TEN, OUR AVERAGE ANNUAL GROWTH WAS 1.5% VERSUS 2010 TO 2021 WAS 0.7.

SO THAT PUTS IT RIGHT IN BETWEEN THOSE TWO.

THOSE TWO POINTS, IF WE'RE LOOKING AT A, A MORE AVERAGE ESTIMATE.

I THINK JUST GOING BACK A LITTLE BIT TOWARD SOME OF THE.

THE REPORT THAT WAS TALKED ABOUT AND THE CONSIDERATIONS FOR AFFORDABILITY AND EQUITY.

AM I CORRECT IN UNDERSTANDING THAT THE REPORT IN QUESTION WAS PRIMARILY OR EXCLUSIVELY EXAMINING HOME OWNERSHIP SITUATIONS AND DID NOT ACCOUNT FOR MULTIFAMILY OR RENTAL? YEAH, IF I MAY MAYOR AND COUNCIL MEMBER HOUSE.

IT WAS REALLY FOCUSED ON SINGLE FAMILY RESIDENTIAL.

SO IT WAS NOT NECESSARILY TIED TO, YOU KNOW, RENTAL OR OWNERSHIP STATUS OF SINGLE FAMILY HOMES, BUT IT WAS FOCUSED EXCLUSIVELY ON SINGLE FAMILY HOMES AND DID NOT LOOK AT APPLYING THESE CHARACTERISTICS TO MULTIFAMILY OR COMMERCIAL PROPERTIES.

OKAY. THANK YOU.

ROKERMHM. COUNCIL MEMBER MCCARTHY.

WELL, MAYOR, I'VE TAKEN MY LITTLE CHART HERE AND CIRCLED THE ONES THAT I THINK WE SHOULD DO.

BUT BEFORE I READ THOSE OFF, I'M WONDERING IF WE SHOULD HEAR PUBLIC COMMENT.

YOU DON'T HAVE ANY QUESTIONS? I DON'T HAVE ANY QUESTIONS.

I HAVE RECOMMENDATIONS, BUT IT'S PROBABLY MORE APPROPRIATE TO WAIT UNTIL THE PUBLIC SPEAKS.

OKAY. QUESTIONS? COUNCIL. ALL RIGHT.

I HAVE A COUPLE.

AARON, CAN YOU SPEAK TO WHY? THERE HASN'T BEEN A WATER RATE INCREASE IN FOUR YEARS.

MAYOR IN 2018, WE WERE PREPARED TO BRING FORWARD THE NEXT RATE STUDY TO BE COMPLETED IN 2020.

[03:45:05]

BUT WE RAN INTO COVID, WE RAN INTO STAFFING TURNOVER.

IT JUST WE WEREN'T ABLE TO EXECUTE IT AT THAT TIME.

AND IT'S ONLY BEEN IN THE LAST YEAR AND A HALF THAT WE PROCURED STANTEC AND WE STARTED WITH THEM, I THINK, IN IN APRIL LAST YEAR.

AND IT'S JUST A LONG PROCESS.

THANK YOU. AND SO THAT'S A GIVEN THAT WE DON'T CONTEMPLATE RATE INCREASES WITHOUT A STUDY.

I BELIEVE I LOOK TO BRANDI.

BUT SOME CHANGES TO RATES CAN BE MADE WITHOUT A STUDY, SO LONG AS THE THE JUSTIFICATION IS IS LEGALLY.

CONDUCTED.

THAT IS CORRECT, AARON.

SO, MAYOR COUNCIL BRANDI SUED THE CITY'S FINANCE DIRECTOR.

YOU KNOW, RATE CHANGES SUCH AS THE WATER RATE STUDY, WE WOULD DEFINITELY WANT TO DO A FULL RATE STUDY.

WE HAVE DONE SMALLER INTERNAL RATE STUDY ANALYSIS FOR SOME SMALLER FEES.

BUT WHEN IT COMES TO SOMETHING THIS LARGE, WE WOULD LOOK TO HIRE A CONSULTANT AND DO A FULL STUDY.

THANK YOU.

SURE. I JUST MIGHT MENTION THAT I WAS IN THE WATER COMMISSION, AND I THINK IT WAS THE 2010, AND WE DID HIRE A CONSULTANT TO HELP US WITH THE ANALYSIS, SIMILAR TO WHAT WE'RE DOING NOW, BUT NOT AS IN QUITE AS MUCH DETAIL.

AND I'M GOING TO ASK YOU THIS AGAIN.

SHANNON CARROLL, WHOEVER THIS QUESTION IS FOR, I JUST WANT TO MAKE SURE THAT I HAVE IT CORRECT.

SO THE CAPACITY FEES THAT WE ARE CURRENTLY.

COLLECTING. ARE PAYING FOR.

IT'S PAYING FOR THE GROWTH THAT THEY'RE NECESSITATED BY.

I'M HERE. I THINK I WOULD HAVE FRAMED THAT AS THE CAPACITY FEES THAT ARE COLLECTED.

WE DEFINITELY APPLY TOWARDS GROWTH PROJECTS.

BUT THERE'S NOT ENOUGH REVENUE COLLECTED FROM THE CAPACITY FEES TO FUND ALL THE GROWTH PROJECTS.

SO IT IS JOINT FUNDED BETWEEN THE RATES AND CAPACITY TO FUND THOSE PROJECTS, OR INCLUDING DEBT GRANTS.

WE USE ALL OF THOSE FUNDING OPPORTUNITIES FOR THE PROJECTS.

OKAY. THANK YOU.

AND SO WE COULD CONSIDER RAISING THE CAPACITY FEES TO BETTER ACCOUNT FOR IF WE RAISE CAPACITY FEES TO BETTER ACCOUNT FOR THE COSTS OF GROWTH.

I BELIEVE YOU SHOWED US A SLIDE OF WHAT IT WHAT IMPACT IT HAD ON THE FEES FOR EVERYONE ACROSS THE BOARD, AND IT WAS FAIRLY MINIMAL, IF I RECALL THAT SLIDE.

IS THAT CORRECT, CAROL? MAYOR THAT THAT IS CORRECT.

AND THE IMPACT WAS FURTHER OUT IN THE FORECAST PERIOD, NOT IN THE NEAR TERM.

OKAY. THANK YOU.

THANK YOU. SHANNON.

OF COURSE. OKAY.

I'M GOING TO TAKE PUBLIC COMMENT.

MICHELLE JAMES.

HELLO. MAYOR, VICE MAYOR AND COUNCIL.

YOU GUYS KNOW WHO I AM? I'M EXECUTIVE DIRECTOR OF FRIENDS OF FLAGSTAFF FUTURE.

EFCB COMMENDS AND SUPPORTS THE COUNCIL ON WATER SERVICES IN THEIR EFFORTS TO ENGAGE THE PUBLIC IN IMPORTANT DISCUSSIONS ABOUT THE PROPOSED WATER RATES.

FKB CONTINUES TO BE CONCERNED ABOUT THE FAIRNESS OF THE PROPOSED RATES AND THEIR RELATIONSHIP TO ISSUES OF ECONOMIC EQUITY IN OUR COMMUNITY.

I AND OTHERS HAVE DISCUSSED THESE CONCERNS WITH WATER SERVICES STAFF AND FKB BOARD MEMBERS DISCUSSED THIS IN DETAIL WITH THE MAYOR AND STAFF AT SATURDAY'S WATER RATES.

COMMUNITY DROP IN EVENT.

EFCC BELIEVES STRONGLY THAT COUNCIL MUST ADDRESS THE EQUITY ISSUES RAISED BY THE PUBLIC PRIOR TO MAKING A FINAL DECISION ABOUT WATER RATE CHANGES.

WE HAVE PROVIDED THE COUNCIL WITH TWO PUBLICATIONS THAT ADDRESS ISSUES OF ECONOMIC EQUITY AND WATER RATES, AND IT IS CLEAR THAT EQUITY IS SOMETHING THAT WATER PROGRAMS AROUND THE

[03:50:01]

COUNTRY ARE STRUGGLING WITH, AND FOR WHICH SOLUTIONS HAVE BEEN FOUND.

THESE INCLUDE ENSURING AFFORDABLE ACCESS TO WATER FOR BASIC NEEDS AND PREVENTING OR MINIMIZING RESIDENTS OF SMALL HOMES.

SUBSIDIZING LARGER PROPERTIES.

YES, WE UNDERSTAND THAT REVISION OF THE RATE STUDY TO ADDRESS EQUITY ISSUES WILL LIKELY MEAN A DELAY IN THE CITY'S ORIGINAL TIMELINE.

EQUITY IS COMPLICATED, BUT AN IMPORTANT ISSUE.

FCPS BELIEVES IT IS VERY IMPORTANT FOR THE CITY TO GET THIS RATE STUDY CORRECT THE FIRST TIME, RATHER THAN DELAYING ADDRESSING THESE EQUITY ISSUES UNTIL SOME POINT IN THE FUTURE.

FLAGSTAFF NEEDS AND DESERVES EQUITABLE WATER RATES.

AS SHANNON JONES SAID IN THURSDAY'S DISCUSSION OF THE WATER RATES, THE WORST CASE SCENARIO IN THE CASE OF DELAY IN THE SCHEDULE IS THAT A NEW NOTICE OF INTENT WOULD NEED TO BE FILED. COUNCIL HAS THE FLEXIBILITY TO MAKE GOOD POLICY HERE AND NOW.

FXB ENCOURAGES COUNCIL TO SCHEDULE A WORK SESSION TO DISCUSS EQUITY ISSUES RELATED TO WATER ISSUES.

FLAGSTAFF LOWER INCOME HOUSEHOLDS CANNOT ABSORB SIGNIFICANT INCREASES IN WATER RATES.

THE COMMUNITY SHOULD NOT BE HELD HOSTAGE, SO TO, SO TO SPEAK, BY AN ARBITRARY COMPLETION DATE DETERMINED AT THE BEGINNING OF THIS PROCESS.

THE COMMUNITY NEEDS YOU TO CONSIDER A DELAY OF THE COMPLETION RATE.

COMPLETION OF THE RATE STUDY SO THAT EQUITY CAN BE ADDRESSED AND INCLUDED.

THANK YOU. THANK YOU.

MICHELLE. VICE MAYOR.

MICHELLE. MICHELLE.

DON'T TURN YOUR BACK TO ME.

NO. I'M JOKING. I WAS THINKING ABOUT SITTING DOWN.

I JUST I REALIZE YOU HAVEN'T HAD A CHANCE TO HUDDLE WITH ANYBODY YET, BUT I WANTED TO GET YOUR INITIAL REACTION TO WHAT OUR PRESENTERS HAVE JUST SAID ABOUT EQUITY. RECOGNIZING THAT YOU'RE THE F CUBED HAS ASKED THESE QUESTIONS, AND THEY'VE TRIED TO ADDRESS THEM, AND THEY'RE THE AUTHORS OF SOME OF THESE STUDIES THAT ARE BEING REFERRED TO.

I REALIZE COMING INTO THIS MEETING, YOU'RE ADVOCATING FOR A DELAY.

I'M WONDERING IF THEY'VE SAID ANYTHING THAT HAS MOVED THE NEEDLE ON THAT FOR YOU OR F CUBED.

WHAT HAS MOVED THE NEEDLE FOR ME? WE JUST KIND OF ASSUME THAT IF YOU IF YOU WERE GOING TO START LOOKING AT EQUITY ISSUES IN A SERIOUS WAY THAT IT WOULD IT WOULD CAUSE A DELAY BECAUSE YOU GUYS ARE TRYING TO GET THIS THING DONE BEFORE A SUMMER BREAK.

SO OUR ASSUMPTION WAS THAT IT, YOU KNOW, THAT THERE WOULD BE A DELAY REQUIRED.

YOU KNOW, WE'RE NOT SURE ABOUT THAT.

THAT'S WHY I'M SUGGESTING THAT YOU GUYS HAVE A MEETING AND TALK ABOUT EQUITY ISSUES.

AND, YOU KNOW, I LEARNED A LOT FROM WHAT WHAT STANTEC WAS TELLING ME.

BUT THE THINGS THAT I'VE MENTIONED IN MY COMMENTS ARE ACTUALLY ELEMENTS THAT ARE IN THE SUMMARY THAT WAS DONE BY ASU.

FROM THE KYLE POLICY ON WATER CONSERVATION, THAT GROUP.

AND AND THEIR TENANTS SAY THAT AGAIN THEIR, THEIR EQUITY TENANTS THAT THEY HAVE.

RIGHT. THEIR EQUITY TENANTS.

RIGHT. AND SO IT'S A LITTLE BIT DIFFERENT.

I MEAN, I UNDERSTAND THE STANTEC REPORT IS INCREDIBLY COMPLICATED AND LONG, AND THERE'S NO WAY YOU GUYS COULD FLAGSTAFF COULD DO A STUDY LIKE THAT NOW.

RIGHT. SO SOMETHING OUT INTO THE FUTURE IF WE EVEN HAVE THE DATA TO DO THAT.

BUT THE THINGS I TALKED ABOUT IN MY COMMENTS ABOUT, LIKE A BASIC LEVEL OF WATER USE FOR FAMILIES, THAT THAT'S SOMETHING I THINK IT WOULD BE IMPORTANT TO CONSIDER IF THAT COULD BE WORKED INTO THIS EXISTING, YOU KNOW, THE WORK YOU'VE ALREADY DONE WITH THE EXISTING RATE STUDY.

SO THINGS TO CONSIDER.

I SENT YOU GUYS A SUMMARY OF THOSE TWO DOCUMENTS.

AND YOU CAN KIND OF SEE IN THERE THE HIGHLIGHTS OF THE THINGS THAT I THINK ARE STILL WORTH CONSIDERING GIVEN THE SHORT TIME PERIOD YOU GUYS HAVE.

SO. MAYBE YOU WON'T HAVE TO DELAY.

BUT IF AT LEAST IF YOU COULD CONSIDER THOSE THAT THAT WOULD BE YOU KNOW, THAT'S WHAT WE'RE ASKING FOR IS A LITTLE MORE CONSIDERATION.

I UNDERSTAND THAT THERE IS THIS HELPED A LOT FOR ME TO UNDERSTAND HOW EQUITY IS BEING ADDRESSED IN THOSE DECISIONS.

I'M NOT SURE IT GOES FAR ENOUGH, IS WHAT WE'VE BEEN DISCUSSING.

IF YOU COULD, IF YOU COULD THINK ABOUT THESE OTHER THINGS AND SEE IF THERE'S A WAY TO ADD THEM.

THAT'S WHAT WE RECOMMEND.

THANK YOU. OKAY, THANKS.

THANK YOU. MICHEL.

STEPHEN. POOR.

GOOD EVENING.

MAYOR, COUNCIL.

VICE MAYOR.

SANTEK. SO I'D LIKE TO TO TRY TO MOVE THINGS FORWARD AND GET SOME QUESTIONS ANSWERED MYSELF.

SOME CLARIFICATION WHEN I GET A CHANCE TO MEET LAST WEEK WITH STANTEC FOR AN HOUR.

THEY MENTIONED TO ME THAT SOME OF THE EXPENSES AS THEY GO THROUGH DIFFERENT THEY HAVE AN EXECUTION RATE OF 9990.

AND THEN THERE IS A PERIOD THAT WAS 75%.

[03:55:01]

AND THEN THEY SAID, THAT'S BEEN CHANGED IF IT'S 90.

CAN YOU VERIFY THAT? AND WHERE ARE THOSE NUMBERS IN YOUR SCENARIOS YOU USE CAROL OR DID YOU DO THAT.

YEAH. DO YOU WANT ME TO RESPOND? YES, PLEASE.

OKAY. YES.

THE ALL OF THE SCENARIOS THAT YOU SEE TONIGHT HAVE THE EXECUTION OF EXPENSES AT 90%.

SO THAT ACCOUNTS.

THANK YOU EVERY YEAR.

THANK YOU. AND AND AND JUST GOING BACK TO COUNCILWOMAN HOUSE.

THE GROWTH FACTOR USED IN HERE IS NOT POPULATION.

IT'S ACCOUNT GROWTH. IS THAT CORRECT? THAT IS ALSO CORRECT.

THIS IS A COUNT GROWTH.

RATHER THAN JUST WANT TO CLARIFY THAT FOR HER.

AND AND YOU ARE LOOKING ON THESE ON THE, ON THIS MATRIX THAT YOU GAVE US.

THIS IS FOR FIVE YEARS OR ALL TEN YEARS.

NOT CLEAR ON THAT.

THIS IS FOR FOR THE GROWTH, ESCALATION AND CIP FUNDING AND ACTUALLY FOR ALL OF IT.

YES. NINE YEARS NINE YEARS.

OKAY, OKAY. THANK YOU.

AND THE ESCALATION THAT THAT YOU HAVE HERE, IT FACTORS AT 2.435 AND FOUR FIVE IS THAT FOR ALL THE EXPENSES OR CERTAIN EXPENSE LINES.

ANOTHER GOOD QUESTION. THIS IS FOR THE THOSE EXPENSE LINES THAT ARE GENERAL THAT ARE APPLIED UNDER THE GENERAL INFLATION ASSUMPTION.

SO IT EXCLUDES THINGS LIKE CHEMICALS, ELECTRICITY AND MAINTENANCE COSTS, WHICH WE HAVE ESCALATED AT 6% PER YEAR FOR THE WHOLE FORECAST.

OH, OKAY.

THANK YOU.

SO. LET ME JUST SAY THAT THE 6% AND THE, THE CHEMICAL THAT THAT THEY GAVE YOU BEFORE.

MY PROBLEM WITH THAT IS I WENT BACK FOR 13 YEARS AND OVER 13 YEARS.

YOU TAKE A LOOK AT ABOUT A ONE YEAR, TWO MONTH SECTIONS.

OKAY. SO YOU HAVE SO YOU HAVE 12 DIFFERENT SECTIONS OVER THAT PERIOD OF TIME.

THERE WERE TWO PERIODS THAT WERE DOUBLE DIGITS.

THE AND ONE WAS THE SECOND TO LAST PERIOD WHICH WAS 30% WENT WHICH WAS THE THE INFLATION INDUCED BY THE FED AND ALSO BY THE PANDEMIC.

AND THE OTHER ONE WAS A -11%, WHICH WHICH WAS WAY OFF.

AND ONE OF THE THINGS YOU USUALLY DO TO TAKE AN IDEA OF THAT AVERAGE YOU'RE USING IS GOOD.

WHAT YOU DO IS YOU YOU TOSS OUT THE LOW AND THE HIGH, AND YOU KNOW WHAT YOU DO WHEN YOU TOSS OUT THE LOW AND THE HIGH OVER TEN YEARS, YOU GET A 0.43% AVERAGE RATE, WHICH IS, BY THE WAY, 6% IS 14 TIMES THAT.

SO THERE'S NO WAY, IF YOU LOOK AT THE AVERAGE WHEN THINGS SETTLE OUT, THAT A 6% RATE IS SOMETHING THAT YOU CAN DEFEND.

LET ME JUST CLARIFY.

SO YOU'RE SAYING THE YOU'RE SAYING THE ESCALATION RATE AND YOU'RE YOU'RE TALKING SPECIFICALLY ABOUT CHEMICALS, CORRECT? I'M USING THEIR WHAT THEY BROUGHT UP TO OUT OF THE THREAD OF THE CHEMICAL WATER TREATMENT THAT WAS PRESENTED WITH WITH MR. JONES AND, AND WITH CAROL, THAT FACTOR AND THAT PARTICULAR DATA SET COMING FROM THE FED.

I TOOK THAT APART.

AND IT GOES BACK TO FOR 13 YEARS.

OKAY. GOES BACK TO 2011.

AND I BROKE IT UP TO 12 DIFFERENT SEGMENTS, EQUAL SEGMENTS OF ONE YEAR TWO MONTHS.

OKAY. AND THAT'S WHAT I FOUND.

IS THAT ALL YOU HAD DURING THAT PERIOD OF TIME WERE TWO LARGE NUMBERS.

ONE WAS AFTER THE PANDEMIC AND AFTER THE FEDERAL RESERVE INCREASED MONEY SUPPLY 40%.

OKAY. OH, AND BY THE WAY, AFTER IT WENT UP 30%, IT CAME DOWN 8% THE NEXT PERIOD.

BUT THE POINT IS, WHEN YOU LOOK AT DATA SETS THAT THAT ARE, THAT ARE PRETTY FLAT, AND THEN THERE HAVE TWO OUTLIERS.

WHAT YOU DO IS YOU THROW OUT THE LOW AND THE HIGH OUTLIERS.

IN THIS CASE, THOSE ARE THE TWO BIG OUTLIERS.

AND YOU END UP WITH AN AVERAGE ANNUAL RATE OF PRICE INCREASE OF 0.43%.

NOT SIX SIX IS 14 TIMES BIGGER THAN THAT NUMBER.

IT JUST YOU WOULDN'T DO IT.

THAT'S NOT WHAT THE LONG TERM AVERAGE IS, IS TELLING YOU.

THANK YOU. VICE MAYOR STEVE, THANK YOU SO MUCH FOR YOUR PARTICIPATION IN THIS WHOLE PROCESS.

YOUR COMMUNITY MEMBER, YOU'VE HAD ISSUES WITH POST-WILDFIRE FLOODING.

YOU'VE COME TO THE TABLE OVER THE PAST YEAR AT LEAST.

ACTUALLY, IT'S BEEN MORE THAN THAT.

IT'S MORE LIKE TWO.

I REMEMBER YOU BEING AROUND WITH THE PREVIOUS MAYOR AS WELL.

I JUST, I, I WISH WE HAD MORE PEOPLE LIKE YOU WHO ARE PUTTING THIS MUCH ENERGY AND THOUGHT INTO THIS.

I THINK THAT YOU'RE COMING TO THIS FROM A FAIRLY OBJECTIVE PERSPECTIVE, AND YOU'RE YOU'RE TRYING TO LEVERAGE YOUR OWN PERSONAL PROFESSIONAL.

INSIGHT AND YOU'RE GIVING TO THE COMMUNITY BY DOING THAT.

[04:00:05]

I'M NOT SURE WE'RE GOING TO COME TO SOME OF THE SAME CONCLUSIONS, BUT I WANT YOU TO KNOW THAT I'VE.

I FEEL LIKE I'VE BEEN LISTENING TO YOU AND I'VE BEEN HEARING YOU, AND I UNDERSTAND, I THINK I UNDERSTAND WHERE YOU'RE COMING FROM.

MY QUESTION FOR YOU, WHICH I'M NOT GOING TO ASK TO EVERYBODY, BECAUSE I DON'T THINK EVERYBODY HAS PUT IN THE SAME AMOUNT OF ENERGY AS YOU HAVE.

DO YOU FEEL THAT THIS, THAT YOU'VE BEEN HEARD THROUGH THIS PROCESS, THAT YOU'VE HAD ACCESS TO ANSWERS TO YOUR QUESTIONS, THAT WHAT WE'RE DOING HAS BEEN A TRANSPARENT PROCESS.

MAYBE WE HAVEN'T TAKEN ENOUGH TIME TO CONSIDER IT, BUT YOU FEEL THAT WE'RE GIVING IT ATTENTION THAT IT DESERVES.

AND I DON'T KNOW HOW YOU'RE GOING TO ANSWER THESE QUESTIONS.

I'M NOT TRYING TO THROW YOU A SOFTBALL OR ANYTHING LIKE THAT.

I'M TRULY CURIOUS TO UNDERSTAND IF YOU FEEL THAT YOU'VE THAT YOUR VALUABLE INPUT IN THIS PROCESS HAS HAD AN INFLUENCE AND AN IMPACT, AND AT LEAST YOU'VE BEEN HEARD.

THANK YOU FOR THE QUESTION.

SO I THINK I, YOU KNOW, THERE'S THERE'S SEVEN OF YOU.

OKAY. THERE'S THE STAFF, THERE'S THE THERE'S THE CONSULTANT.

AND THIS IS I DID GET A CHANCE TO SIT DOWN FOR AN HOUR.

I CAN TELL YOU ALL MY QUESTIONS WEREN'T ANSWERED IN AN HOUR.

WE HAVEN'T BEEN ABLE TO GET ON THE SAME PAGE ON A LOT OF ON A NUMBER OF THINGS IN AN HOUR.

AS YOU SEE, THIS IS A VERY COMPLICATED MODEL.

LIKE A LOT OF MODELS, THERE'S A LOT OF MOVING PIECES.

I TRIED TO SIMPLIFY IT IN MY APPROACH.

OKAY. SO I REALLY APPRECIATE THE OPPORTUNITY TO SIT DOWN WITH EVERYBODY FOR AN HOUR.

BUT AGAIN, IT IT JUST WASN'T ENOUGH.

OKAY. I'M STILL COMING BACK, AND I'D LOVE TO SPEND SOME MORE TIME WITH THEM AND GET ON THE SAME PAGE.

WE WERE ABLE TO GET ON THE SAME PAGE THAT IF THE COST DID NOT GO UP FOR A DOLLAR, WE CAN TAKE IT OUT OF THE RATE.

I DON'T SEE THAT IN SOME OF THE NUMBERS.

AND AND SHE JUST CLARIFIED WHY.

BECAUSE THE 2.4 HERE ISN'T ALL THE EXPENSES.

OKAY? I TOOK ALL THEIR EXPENSES, ALL THEIR REVENUE THEY PRESENTED TO YOU OKAY.

AND PUT THEM IN. AND I SAW THE RATE INCREASES AND I, I MADE SOME ADJUSTMENTS, BUT I DIDN'T CHANGE THEIR NET OPERATING.

I DIDN'T CHANGE ANYTHING THAT WOULD HURT THEIR CIP.

AND I DON'T UNDERSTAND EXCEPT FOR NOW, AS I WAS TALKING TO SOME PEOPLE EARLIER THAT WERE HERE, THEY SAID, STEVE, YEAH, YOUR 2.4 IS NOTHING.

I MEAN, LOOK AT THIS. IT ONLY CHANGES THE REVENUE, THE RATE INCREASE TO 14 VERSUS 15.

I SAID SHE'S NOT INCLUDING ALL THE NUMBERS.

IT'S GOT TO BE I MEAN, I I'VE GOT YOU KNOW, ONE OF THE THINGS I'VE HEARD IS THAT AND I'VE SPOKEN TO SOME PEOPLE OUTSIDE OF THIS GROUP AND I'VE HEARD, YOU KNOW, GEEZ, WHAT'S YOUR ANGLE? I MEAN, YOU KNOW, WHAT? ARE YOU GETTING OUT OF IT? WHAT WHO ARE YOU BACKING AND WHO YOU'RE TALKING TO? BECAUSE IF THEY'RE NOT MY PEOPLE, I DON'T BELIEVE YOU.

YOU KNOW, AND IT'S UNFORTUNATE SITUATION WE HAVE HERE IN IN ON THE NATIONAL SCENE.

IT'S JUST NOT LOCALLY THAT YOU KNOW WHAT CORNER I SIT IN.

YOU'RE GOING TO BELIEVE ME. AND I'M JUST PRESENTING WHAT ARE WHAT ARE ACCEPTABLE FINANCIAL FORECASTING OR INDEPENDENT NUMBERS.

AND THAT'S WHY I GO BACK TO, YOU KNOW, THE THE NUMBERS BY THE FEDERAL RESERVE FOR INFLATION.

FOR EXAMPLE, I GO BACK TO THE US CENSUS FOR THE POPULATION GROWTH OR THE OFFICE OF ECONOMIC OPPORTUNITY OR THE PERSON YOU HIRED, DANNY CAUGHT.

I THINK SOME OF THE THINGS HAVE BEEN HEARD.

WHAT WHAT I HAVEN'T HEARD BACK FROM EVERYBODY.

I DON'T KNOW, YOU KNOW, WHERE THE FEEDBACK IS.

I'VE HEARD BACK FROM A NUMBER OF THE COUNCIL PEOPLE, AND I HAVE SPOKEN TO A NUMBER OF THEM.

I HAVEN'T SPOKEN TO ALL OF YOU, AND I THINK SO.

I, YOU KNOW, ARE YOU BATTING, YOU KNOW, 50%.

IT'S GOOD IN BASEBALL, 75% IN THIS MAY BE SOMEWHERE BETWEEN THERE WITH REGARDS TO BEING HEARD.

AND I STILL FEEL THAT AT THE END OF THE DAY, I LIKE TO PRESENT.

I'M NOT TRYING TO CHANGE YOUR CAPITAL IMPROVEMENT PLAN.

I'M NOT TRYING TO CHANGE THAT AT ALL.

I'M TRYING TO FIND WHAT IT LOOKS LIKE.

AND THIS IS JUST 27 LINES ON A SPREADSHEET FOR REVENUE OR EXPENSES ON TWO DIFFERENT OPERATIONS.

IT SHOULDN'T BE TAKE LONG FOR US TO SIT DOWN AND SAY, OKAY, STEVE, YOU'RE SCREWED UP HERE.

OR, YOU KNOW, I DIDN'T LOOK AT IT THAT WAY.

SO I THANK YOU FOR THE QUESTION.

I THINK THERE'S BEEN PROGRESS RELATIVE TO MY PAST APPEARANCES HERE, AND I'LL LEAVE IT AT THAT.

BUT I'M AWFUL THANKFUL THAT THINGS ARE MOVING FORWARD.

[04:05:03]

I'M AWFUL THANKFUL THAT WE HAVE AN OPPORTUNITY TO TALK.

BUT I THINK THE FORMAT HERE WHERE I USUALLY AND MY CITIZENS ONLY GET THREE MINUTES.

AND LAST THURSDAY WE ALMOST GOT SHUT OUT FOR TWO HOURS, YOU KNOW, AN HOUR AND 45 MINUTES LISTENING TO CONSULTANTS AND ETC.

AND WE'RE NOT REALLY HAVING A CONVERSATION.

WE'RE NOT REALLY GETTING THE FEEDBACK, AND WE'RE NOT REALLY SAYING, OKAY, WHAT AM I DOING WRONG? I'VE NOT HEARD ONE IOTA ON WHAT'S WRONG WITH MY ASSUMPTIONS AND WHAT'S WRONG WITH THE ASSUMPTIONS I BRING, POINTING TO OTHER EXPERTS THAT I'VE HAD TO UTILIZE IN MY CAREER.

AND I'M NOT A DEMOGRAPHER.

I'M NOT AN INFLATION FORECASTS.

I KNOW THEY'RE IMPORTANT.

YOUR TREASURY USES THEM, YOUR CPA USES THEM, AND THEY SAY 2.4.

AND I SAY, GUYS, HERE ARE THE NUMBERS YOUR PEOPLE ARE USING, NOT STEVE'S NUMBER.

I DON'T CREATE THEM.

THANK YOU VERY MUCH.

ANY OTHER QUESTIONS.

THANK YOU STEVE.

ALL RIGHT. COUNCIL.

WELL, LET ME.

CAROL. WOULD YOU LIKE TO ADDRESS ANY OF THAT? I'M MAYOR AND I.

I'M NOT. I'M NOT SURE THAT WOULD THAT WOULD CHANGE ANYTHING.

I WOULD LIKE TO TALK A LITTLE ABOUT ABOUT THE ESCALATION, GIVEN THE FACT THAT YOUR SALARIES ALONE, WHICH ARE THE LARGEST COMPONENT OF YOUR OPERATING BUDGET, ARE ACTUALLY GOING UP BETWEEN 3 AND 5% PER YEAR FOR SALARY ADJUSTMENTS, I WOULD FEEL VERY UNCOMFORTABLE ASSUMING THAT EVERY COST ITEM WOULD WOULD BE AT 2.4%.

THE OTHER THING THAT I HAVE TO SPEAK FROM IS PERSONAL EXPERIENCE.

AND I KNOW, I KNOW THAT THIS IS A PARTICULAR EXPERIENCE.

BUT PRE-PANDEMIC, I WORKED FOR A COMMUNITY IN COLORADO AND I INCORPORATED A FORECAST OF 2.3% DEFAULT INFLATION.

2.3% AND POST COVID.

AND I KNOW THAT WAS A ONCE IN A LIFETIME SITUATION, BUT HOPEFULLY.

BUT POST COVID, I GOT CRITICIZED FOR GUARANTEEING THEM THAT INFLATION WAS GOING TO BE 2.3%.

AND WHICH WAS UNREASONABLE, BUT IT IT TAUGHT ME TO BE CAUTIONARY ABOUT WHAT I'M USING.

AND I WAS USING THE PHILADELPHIA FEDERAL RESERVE BANK.

HEADLINE CONSUMER PRICE INDEX FORECAST.

SO SAME EXPERTS THAT WE'RE TALKING ABOUT AND AND I SO I'M HESITANT TO JUST MAKE THAT THAT BLANKET ASSUMPTION TO ALL EXPENSES, PARTICULARLY SINCE WE'VE SEEN THAT YOUR SALARIES ARE ESCALATING AT HIGHER THAN THAT.

AND ALSO THE 6% ASSUMPTION ON CHEMICALS AND ELECTRICITY AND MAINTENANCE IS NOT JUST BASED ON THE FRED INDEX THAT THAT'S IN THIS PRESENTATION, BUT IT'S IT'S ALSO BASED ON WHAT YOUR UTILITY, WHAT WATER SERVICES IS SEEING THROUGH CONTRACTS AND THROUGH CHEMICAL SUPPLIES.

SO IT'S NOT WHAT I, WHAT I PREFER TO USE IS NOT JUST A BLANKET FORECAST, BUT ALSO CUSTOMIZE IT TO WHAT YOU ARE SEEING AND WHAT YOU ARE EXPERIENCING, SO THAT WE ARE MORE CLOSELY FORECASTING WHAT MIGHT HAPPEN IN YOUR EXPENSES.

THANK YOU FOR LETTING ME SAY THAT.

ANY QUESTIONS ON THAT? COUNCIL MEMBER HARRIS.

I JUST HAVE A RESPONSE AND NOT REALLY A QUESTION.

IS THAT THE THE PANDEMIC WAS AN ANOMALY.

I MEAN, THIS COUNTRY SHUT DOWN AND IT LOOKED LIKE THE EARTH STOOD STILL.

YOU KNOW, AND SO I THINK THAT IF WE'RE GOING TO MAKE FORECASTS BASED ON AN ANOMALY AND WE DON'T WANT TO MAKE THAT MISTAKE AGAIN, I CAN UNDERSTAND PEOPLE WANTING TO BE CAUTIOUS, BUT WE CAN'T DO THAT BECAUSE I DON'T THINK THAT'S GOING TO HAPPEN TO US IN ANOTHER HUNDRED YEARS. AND YOU AND I ARE NOT GOING TO BE HERE WHEN THAT HAPPENS.

SOMEBODY ELSE WILL NEED TO DEAL WITH THAT ISSUE.

SO. SO THAT'S MY ONLY COMMENT, IS THAT, YOU KNOW, WE JUST HAVE TO BE CAREFUL ABOUT THAT.

AND I CAN SEE THAT THAT MIGHT MAKE YOU SHY.

BUT WE'RE REALLY INTERESTED IN, YOU KNOW, US RIGHT NOW AND NOT WHAT THAT OTHER GROUP DID OR SAID.

YOU KNOW, AND IN MY OPINION, THAT WAS UNFAIR TO YOU FOR THEM TO DO THAT BECAUSE THEY SHOULD ALL KNOW IT WAS CRAZY.

SO THANK YOU.

CAROL, CAN YOU TAKE US TO THE SLIDE WHERE WE'RE TALKING ABOUT CAPACITY FEES.

[04:10:13]

OKAY. SO IN FY 2829.

WHAT DIFFERENCE WOULD IT MAKE? AND, AND I REALIZE I'M NOT GOING TO GET AN ANSWER TONIGHT, BUT I'D LIKE TO SEE WHAT THE DIFFERENCE WOULD BE.

BETWEEN 13 AND 15 AND TEN.

15 IN DOLLARS FOR A FOR A COMMERCIAL USER AND A RESIDENTIAL USER.

AND MAYOR, WOULD YOU WANT THAT IN TERMS OF THE THE WHAT OTHER ELEMENTS AND WHAT OTHER FACTORS WOULD YOU LIKE TO SEE UNDER THE THE CURRENT SCENARIO WITH THE CURRENT RATE REVENUE PLAN? BECAUSE WE COULD DO THAT PRETTY QUICKLY SINCE WE'RE ASSUMING IN FY 27, THAT SAMPLE BILL THAT I SHOWED YOU FOR THE CURRENT PLAN FOR A RESIDENTIAL AND COMMERCIAL CUSTOMER, THEN WE WOULD TAKE THAT BILL AND ESCALATE IT NOT BY 15%, BUT BY 13% AND THEN 10%.

THAT WOULD BE FINE.

OKAY. AND WE COULD WE COULD GET THAT TO YOU FAIRLY, FAIRLY QUICKLY.

THANK YOU. ALL RIGHT.

COUNCIL QUESTIONS? COMMENTS. AARON, CAN YOU REMIND ME IF IF WE IF WE WERE TO STAY ON TRACK, WHAT OUR NEXT STEP IS.

MAYOR, OUR NEXT STEP WOULD BE.

WELL. OUR ASSUMPTION IS YOU'LL PROVIDE US SOME DIRECTION TONIGHT.

THAT GETS US REALLY CLOSE TO WHAT YOUR FINAL RATES PACKAGE WOULD BE, WHICH, PROVIDED STANTEC AGREES WITH ME, WOULD BE PRESENTED TO YOU ON JUNE 4TH.

IT MIGHT BE STILL IN DRAFT FORM, BUT WE WOULD THEN BE WORKING TO REDLINE THE CITY CODE TO PREPARE THAT FOR YOUR CONSIDERATION ON JUNE 18TH FOR THE FIRST READ.

IF WE DON'T HAVE DIRECTION TONIGHT.

AND WE WERE TO COME BACK AT THE NEXT TUESDAY MEETING OR THE JUNE 4TH MEETING WITH MORE MATERIAL.

I WOULD LOOK TO STANTEC IF IF THAT WOULD MEAN A DELAY IN OUR ABILITY TO MEET THE FIRST READ ON JUNE 18TH.

AARON, IF YOU'RE ASKING FOR FOR MY REACTION TO THAT, IF NEXT WEEK WAS THE POINT OF FINAL DIRECTION.

IT WOULD BE TIGHT.

BUT WE COULD.

RIGHT. I WOULD HAVE TO CHECK WITH MY TEAM TO MAKE SURE THAT WE COULD MAKE ALL THE CHANGES AND PROVIDE THE RED LINES OF CODE.

THAT'S AT THE STATUTORY REQUIREMENTS FOR NOTICING AND HAVING THE REPORT AVAILABLE.

SO THAT WOULD BE THE KEY.

THANK YOU, VICE MAYOR.

JUST THAT HESITANCY PROVIDES ENOUGH CLARITY FOR ME.

I HAVE A LEGAL QUESTION FOR STERLING.

WE'RE NOT GOING TO HAVE TO GO UPSTAIRS FOR THIS.

I KNOW THE ANSWER TO THIS QUESTION, BUT I WANTED TO GIVE YOU A CHANCE TO JUST SAY IT OUT LOUD FOR EVERYBODY'S BENEFIT.

THERE'S ONLY SIX OF US HERE TONIGHT.

CAN YOU WALK US THROUGH WHAT? WHAT DIRECTION MEANS ON A ON AN EVEN NUMBERED COUNCIL FOR FOR THIS.

SO THE ONLY POSSIBLE GLITCH WITH THAT WOULD BE IF THERE ARE THREE FOR EMOTION AND THREE AGAINST EMOTION.

IN A SCENARIO LIKE THAT, WITH ONLY SIX COUNCIL MEMBERS, THAT TIE VOTE ESSENTIALLY IS AN UNSUCCESSFUL MOTION.

SO OTHER THAN THAT, THE COUNCIL, A MAJORITY OF FOUR WILL CARRY WHATEVER THE MOTION IS.

THANKS FOR ASKING THAT.

COUNCIL MEMBER HARRIS THEN DID.

WAS THIS YOU HAVE A QUESTION, COUNCIL MEMBER MCCARTHY? NO, I'M JUST GOING.

ONE. TWO. THREE. FOUR. OKAY.

COUNCIL MEMBER. HARRIS.

A COUPLE QUESTIONS.

WHAT DO WE DO ABOUT THE WHOLE EQUITY ISSUE?

[04:15:04]

OKAY. THINK ABOUT THAT FOR A MINUTE.

AND THEN ARE THERE ANY PROGRAMS THAT WE HAVE AVAILABLE TO US.

AND I'M NOT SURE WHO I'M LOOKING AT, BUT SOMEBODY, WHOEVER CAN ANSWER THIS, ARE THERE ANY PROGRAMS THAT WE HAVE IN OUR TOOLBOX THAT CAN HELP? SOME OF OUR RESIDENTS WHO MAY BE IN THAT SITUATION, AND IS IT POSSIBLE FOR US TO EVEN CONSIDER TRYING TO DO SOMETHING? IN TERMS OF ASSISTING FOLKS IN THEIR IN THEIR WATER BILL.

IF WE MOVE, MOVE FORWARD.

AND THEN THE OTHER THING THAT JUST POPPED INTO MY HEAD IS THAT SOMETIMES WITH APS OR UNISOURCE YOU CAN SOMETIMES GET ON A BUDGET PLAN.

IS THAT EVEN AN OPTION FOR US, FOR PEOPLE WHO MAY FIT INTO THAT CATEGORY? THOSE ARE JUST QUESTIONS.

I DON'T KNOW WHO CAN ANSWER THOSE.

I COULD I CAN TAKE A STAB AT SOME OF THOSE ANSWERING SOME OF THOSE.

MAYOR AND COUNCIL MEMBER HARRIS, ON OUR WEBSITE, WE'VE PROVIDED ON CLEAN WATER FLAGSTAFF.COM.

AND ALSO AT CUSTOMER SERVICE, WE HAVE A RACK CARD OF ONE, TWO, THREE OF FOUR PROGRAMS IN THE CITY THAT CAN HELP PEOPLE WITH WHO ARE HAVING TROUBLE PAYING THEIR BILL.

WE ALSO PROVIDE THROUGH CUSTOMER SERVICE.

THEY PROVIDE A WAY FOR PEOPLE TO PAY BACK A BILL THAT THEY WERE UNABLE THAT THEY'RE LATE ON.

WE PROVIDE THEM WITH A PAYMENT PLAN.

I KNOW CUSTOMER SERVICE TRIES TO WORK REALLY HARD WITH OUR CUSTOMERS BEFORE TURNING WATER OFF AND THINGS LIKE THAT.

AS FAR AS A PROGRAM THAT WE COULD INCORPORATE BEYOND THAT, WE CAN DO THAT AT ANY TIME.

WE CAN HAVE THAT CONVERSATION AT ANY TIME.

IT DOESN'T HAVE TO BE PART OF THE RATE STUDY.

SO JESSICA KITTLESON AND CUSTOMER SERVICE LOOKED INTO SOME OF THOSE PROGRAMS. GENERALLY YOU YOU PAY FOR THAT SERVICE.

SO SOME AN OUTSIDE SERVICE THAT ARE EXPERTS IN HOW TO ADMINISTER A PROGRAM, HOW TO CHECK THAT PEOPLE ARE QUALIFY FOR THE PROGRAM IF IT'S LOW INCOME OR OTHER FACTORS, WE WOULD PAY FOR THAT.

IT COULD BE LIKE A CHECK BOX ON A BILL.

YOU CAN PAY INTO THAT PROGRAM, BUT IT'S ADMINISTERED OUTSIDE.

SO THOSE ARE THINGS WE'RE WE CAN BRING FORWARD AT ANY TIME.

IF I TOUCHED ON, I DON'T KNOW IF I TOUCHED ON ALL OF YOUR QUESTIONS THERE.

YEAH. THAT THAT STARTS THE THE THE CONVERSATION.

SO I'M, I'M JUST CONCERNED THAT IN ON THIS PARTICULAR ISSUE, I DO AGREE WITH FCMP.

AND WE DON'T OFTEN AGREE, BUT THIS ONE I AM AGREEING WITH THEM ON AND WE DON'T WANT TO DO THIS AND SAY, OH, WE'LL COME BACK LATER AND DEAL WITH THE EQUITY ISSUE.

THAT'S MY ONLY CONCERN.

IS THAT TRYING TO FIGURE THAT OUT BEFORE WE MOVE FORWARD IN WHATEVER DIRECTION THAT'S GOING TO GO? ONE. ONE ADDITIONAL THOUGHT BEFORE DIRECTOR JONES.

WHAT WE HEARD TONIGHT FROM STANTEC.

AND IN LOOKING AT THE TENANTS UNDER KYLE CENTER, THEIR TENANTS FOR WATER EQUITY.

THERE ISN'T A PROGRAM I'M AWARE OF OR A RATE STRUCTURE TO ADDRESS THIS.

IT'S SOMETHING STILL BEING PILOTED IN OTHER COMMUNITIES.

SO I DON'T KNOW THAT WE WOULD LAND SOMEWHERE.

WITHIN A REASONABLE AMOUNT OF TIME WHILE WE'RE STILL HAVING REAL ISSUES WITH FUNDING OUR PROGRAMS. SO I JUST WANTED TO.

IT MIGHT BE SOMETHING THAT WE DO HAVE WORK ON OUTSIDE OF THE RATE.

BUT HOPEFULLY A RATE ADJUSTMENT THAT YOU ALL VOTE ON.

AND SO MY LAST QUESTION THEN IS THAT WOULD WE IF WE WERE TO MOVE FORWARD WITH THIS, WOULD WE BE ABLE TO PUT A MORATORIUM ON DISCONNECTING PEOPLE UNTIL WE FIGURED OUT HOW TO HELP FOLKS IN THOSE VULNERABLE POPULATIONS? AND THAT MIGHT BE A LEGAL QUESTION, I DON'T KNOW.

SO I DON'T KNOW.

MAYOR. COUNCIL MEMBER.

HARRISON. SO I DO BELIEVE IT'S WITHIN THE AUTHORITY OF THE GOVERNING BODY TO SET THOSE SET THOSE CONSTRAINTS.

WE DEFINITELY SAW IT THROUGH THE PANDEMIC, I THINK DEFINING WHAT THAT MEANS.

AND SO THROUGH MY EXPERIENCE ON THE MORATORIUM FOR SHUT OFFS WAS NOT A FORGIVENESS OF DEBT.

[04:20:04]

RIGHT? IT WAS A PAUSE.

AND THEN TRYING TO WORK WITH THE COMMUNITY THAT THEY DON'T DIG THEMSELVES INTO A HOLE THAT THEY CAN NEVER RECOVER FROM.

AND YOU MAY AND THROUGH THROUGH THE PANDEMIC, THERE WAS OUTSIDE FUNDING OPPORTUNITIES THAT WORK TO HELP CLOSE THAT GAP.

AND IF WE DID THAT NOW IS ARE THOSE SAME RESOURCES AVAILABLE? SO THOSE ARE A COUPLE THINGS THAT COME TO MIND IMMEDIATELY.

I THINK JUST TO BUILD ON WHAT AARON WAS, WAS KIND OF SHARING.

I THINK IT'S BEEN INTERESTING WORKING THROUGH THE PROCESS, AND WE'RE DEFINITELY ENGAGED IN THE CONVERSATIONS.

I THINK WHAT MAKES IT INTERESTING IS THAT WE BEGIN TO WORK ON MULTIPLE PROBLEMS ALL AT THE SAME TIME.

I WILL SAY, RIGHT THERE WAS 16 MONTHS AGO WHEN WE MOVED FORWARD WITH STANTEC.

THE PROBLEM WE WERE TRYING TO RESOLVE WAS TWO THINGS.

ONE, IN THE OPERATIONAL COST, WE WERE USING ONE TIME MONEY TO FUND REOCCURRING COSTS, AND WE KNEW THAT WAS NOT GOING TO BE SUSTAINABLE.

WE ALSO KNEW THAT WE HAD A CAPITAL IMPROVEMENT PROGRAM WITH A LIST OF THINGS TO DO THAT WE WEREN'T ABLE TO EXECUTE BECAUSE THEY WERE INSUFFICIENTLY FUNDED.

WE CONTACTED STANTEC TO GO THROUGH OUR RATE STUDY, BUILD A FINANCIAL MODEL, DO A COST OF SERVICE, LOOK AT OUR RATE STRUCTURE, AND BRING FORTH A PLAN RIGHT TO EXECUTE THOSE PROBLEMS. THROUGH THE COURSE OF THAT CONVERSATION, THERE'S BEEN MANY SIDEBAR CONVERSATIONS ABOUT ALMOST, YOU NAME IT.

BUT MORE SPECIFICALLY ON WHEN YOU TALK ABOUT EQUITY.

SO AGAIN, WHAT'S THE PROBLEM WE'RE TRYING TO SOLVE, I THINK STARTS WITH CREATING THAT PROBLEM STATEMENT.

I WILL SAY THAT I DON'T KNOW OF ANY WATER RATE STRUCTURE THAT SOLVES ALL OF YOUR EQUITY ISSUES, I THINK.

ARE WE ABLE TO MOVE THE NEEDLE? DO WE BEGIN TO GAIN GROUND STEP BY STEP? BELIEVE IT ON THAT. WE HAVEN'T EVEN DEFINED.

WELL WHAT? WHAT LEVEL OF EQUITY ARE WE TRYING TO RESOLVE? I THINK THROUGH OUR CONVERSATIONS WE'VE HAD MULTIPLE CONVERSATIONS WHERE THE MAYBE THE PROBLEM MOVES A LITTLE BIT.

ARE WE TALKING ABOUT HIGH, HIGH YIELD INCOME? ARE WE TALKING ABOUT LOW INCOME? ARE WE TALKING ABOUT SHORT TERM RENTALS? WE'RE TALKING ABOUT RESIDENTS.

ARE WE TALKING ABOUT SECOND HOMES? LIKE, EACH ONE OF THOSE HAS A DIFFERENT LENS.

AND I FEEL THAT WE'VE WE WERE WORKING TO TRY TO TO LISTEN TO THAT STATEMENT, AND THEN HOW DO WE GO BACK AND APPLY THAT? BUT EACH TIME I FEEL LIKE THE PROBLEM DOES KIND OF MOVE A LITTLE BIT EACH TIME AND WE END UP KIND OF CHASING IT.

SO I THINK WHERE WE'VE LANDED IS SO WHERE'S THE LINE OF OF HOW HOW FAR CAN WE MOVE THE NEEDLE AS OPPOSED TO REALLY LOOKING TO SAY, HOW DO I SOLVE ALL OF THESE EITHER COMMUNITY INITIATIVES OR CHALLENGES THAT WE'RE FACING? BECAUSE I DON'T THINK THERE'S A WATER STRUCTURE THAT DOES THAT.

AND WHAT IT DOES IS IT BEGINS TO MOVE US AWAY FROM WHAT WAS THE PROBLEM? WE'RE TRYING TO WE'RE TRYING TO RESOLVE TODAY.

SO WE DEFINITELY KNOW ANYWHERE THAT WE CAN MOVE THE NEEDLE, ANYWHERE WE CAN TAKE ANOTHER STEP.

WE'RE DEFINITELY COMMITTED TO DO THAT.

WHEN WE BEGIN TO DERAIL THE PROBLEM WE'RE TRYING TO RESOLVE BECAUSE WE'RE CHASING OTHER, LARGER INITIATIVES, I THINK OUR REACTION IS, IS, WELL, YEAH, THAT'S STUFF WE CAN CONTINUE TO WORK ON. AND I THINK THAT WE WILL, REGARDLESS OF WHAT DECISIONS MADE TODAY, THOSE ARE YEARS AND YEARS OF JUST CONTINUING TO WORK TO MOVE THE NEEDLE PAUSING SOMETHING THAT THAT NEEDS TO BE DONE WHEN A LOT OF IT IN MY MIND SIMPLIFIES.

IT COMES BACK DOWN TO THESE ARE MATHEMATICAL EQUATIONS, RIGHT? AND WE'RE JUST SOLVING THE MATH.

AT THE SAME TIME, WE'RE HAVING THESE OTHER CONVERSATIONS ABOUT VALUES, COMMUNITY INITIATIVES AND EQUITIES.

RIGHT. AND WE MOVE AWAY FROM THE MATH CALCULATION.

SO I THINK BEING ABLE TO COME BACK AGAIN.

AND I APPRECIATE WHEN COUNCIL TALKS WITH STANTEC BECAUSE AS FUNNY AS IT MAY SEEM, I FEEL LIKE YOU HAVE THE SAME ARGUMENTS WITH STANTEC THAT I HAD WITH THEM ALL THROUGH THE WEEK, RIGHT? AND SO I'D LIKE TO THINK I PREPARE THEM RIGHT TO COME TO SPEAK, BUT THAT'S NOT ALWAYS THE CASE.

SO ULTIMATELY WE DID WE LOOKED THROUGH ALL THE INITIATIVES BEFORE THEY EVEN LOOKED AT THEM.

I CAN TELL YOU, I KNEW I ALREADY KNOW WHICH ONES ARE GOING TO MOVE THE NEEDLE AND WHICH ONES AREN'T GROWTH PROJECTIONS, I GET IT.

RIGHT. THAT IS AN ASSUMPTION THAT'S IN THE MODEL, AND IT'S SOMETHING THAT COUNCIL HAS THE PREROGATIVE TO MOVE.

I ALSO KNOW THAT NO MATTER HOW HARD YOU PULL THAT LEVER, IF YOUR END RESULT IS LOOKING AT THAT PERCENTAGE OF RATE INCREASE IN YOUR FOUR AND FIVE, THAT LEVER IS NOT WHAT'S GOING TO MOVE IT. AND WE CAN PULL THAT LEVER ALL DAY.

AND IT'S NOT A BAD THING TO DO.

BUT ULTIMATELY WE DO LOOK AT IT.

WE DON'T BILL BY THE NUMBER OF PEOPLE WE BILL ON A METER SIZE AND A VOLUME OF WATER.

AND WHEN YOU LOOK AT THOSE PROJECTIONS IF YOU THINK 1% IS TOO AGGRESSIVE AND YOU WANT TO LOWER THAT, WE CAN LOWER THAT ASSUMPTION AND IT WILL INCREASE THE RATE RESULTS FOR THE CUSTOMERS. IF YOU WANT TO RAISE THAT PROJECTION FOR A HIGHER GROWTH, IT WILL LOWER THE RATE.

AND THEN IN TWO YEARS, IF WE WERE WRONG, WE WILL HAVE TO ADJUST ACCORDINGLY.

THAT BEING SAID ESCALATION DOES MOVE THE NEEDLE A LITTLE BIT FURTHER, BUT WHETHER YOU USE 3.5 OR 2.4 OR WHETHER YOU USE A DIFFERENT PERCENTAGE ON A CERTAIN LINE

[04:25:03]

ITEM IT DOES HAVE MORE OF AN IMPACT.

BUT AGAIN, WHEN YOU START LOOKING AT HOW IT IMPACTS THE RATES OVER THE FIVE YEARS, IT'S NOT THE LEVER THAT MOVES THAT.

I THINK WHAT WE'VE DEMONSTRATED TODAY IS THE TWO MAIN LEVERS.

IF AGAIN, OUR END RESULT IS HOW DO YOU MINIMIZE THAT? THE RATE INCREASE THAT PEOPLE ARE GOING TO SEE IS GOING TO COME BACK TO EITHER WE LOWER RIGHT, WE LOWER THE CIP EXECUTION RATE.

THAT WILL DEFINITELY MOVE THE NEEDLE OR YOU INCREASE YOUR BORROWING.

THAT WILL ALSO MOVE THE NEEDLE.

I THINK BOTH OF THOSE I MENTIONED EARLIER IN OUR CONVERSATIONS BECAUSE I ARGUED WITH STANTEC, BECAUSE BOTH OF THOSE ARE HARD CONCEPTS.

RIGHT. SO AND AGAIN, MY THROUGH MY ANALOGY IS LIKE, IS THIS THE TIME THAT YOU PUT MORE STUFF ON THE CREDIT CARD? RIGHT. AND WHAT IS THAT? AND IF I, IF MY CREDIT CARD IS ALSO WHAT I USE IN THE EVENT OF THINGS THAT I CANNOT PROJECT RIGHT NOW, THINGS THAT WE KNOW UNCERTAINTY IN OUR INDUSTRY AND IN OUR WORLD, HAVING SOME DEBT CAPACITY, HAVING THAT THAT ABILITY TO BORROW MONEY AND NOT AND NOT USE NOT PLAYING ALL THOSE CARDS UP FRONT.

THAT IS MY THAT'S THE LENS I LOOK THROUGH ON THE OTHER SIDE.

I GET THAT WE HAVE A VERY AGGRESSIVE CIP.

WE'VE HAD MULTIPLE CONVERSATIONS ABOUT OUR ABILITY TO EXECUTE AT THAT LEVEL.

AND OVER THE PAST SIX MONTHS.

RIGHT. I HAVE DRILLED MY STAFF AND DEVELOP PLANS ABOUT HOW WE DELIVER PROJECTS.

I WILL TELL YOU, SETTING AN EXPECTATION WITH THE CITY COUNCIL THAT I WILL DELIVER 100% OF YOUR CIP IS A HARD PLACE FOR A DIRECTOR TO STAND.

90%. THAT'S A LITTLE BIT RIGHT.

THAT'S A BIT EASIER TO EXECUTE.

AND I KNOW THAT THAT MOVES THE NEEDLE.

80% AGAIN, IF WE DO 80% OF THE CIP, I'M TELLING YOU, WE'RE DOING TWICE AS MUCH CIP AS WE'RE DOING NOW.

WE MOVE THAT NEEDLE.

ALL OF THAT BEING SAID, WHAT I'D LIKE TO DO IS, IS TRY TO HELP COUNCIL.

PROCESS THROUGH THAT TO SEE WHAT IS THE END RESULT THAT WE'RE TRYING TO ACHIEVE.

WE'RE TRYING TO HAVE A ROBUST, RESILIENT WATER SYSTEM THAT YOU CAN DEPEND ON TO DELIVER YOU WATER AND TAKE IT AWAY WHEN YOU'RE DONE, AND DO THAT EFFECTIVELY AND EFFICIENTLY.

AT THE SAME TIME, WE WANT TO LOOK THROUGH THE LENS OF HOW CAN WE MINIMIZE THE IMPACT ON OUR CUSTOMERS.

THAT BEING SAID, I THINK THAT WE'VE GIVEN YOU THE LEVERS HERE IN THE TABLE TO DO THAT, AND IF WE CAN FACILITATE THAT CONVERSATION WITH STANTEC, THEY CAN GO AWAY FOR ANOTHER WEEK AND THEY CAN RUN THOSE NUMBERS AND WE CAN CHASE IT ALL THE WAY OUT TO THE END RESULT OF THE AVERAGE BILL.

UPDATE OUR BILL CALCULATOR SO THAT PEOPLE CAN SEE THOSE RESULTS AND WE CAN MOVE FORWARD.

WE PAUSE THAT THOSE THINGS DON'T CHANGE, AND WE START HAVING OTHER CONVERSATIONS THAT I FEEL WAS A LITTLE BIT OUT OF THE WHEELHOUSE OF THE THINGS I WAS TRYING TO ACCOMPLISH WHEN WE STARTED 14 TO 16 MONTHS AGO.

I APPRECIATE YOU GIVING ME A FEW MINUTES TO JUST KIND OF SHARE MY THOUGHTS.

I APPRECIATE THE PROCESS THAT IT GOES THROUGH.

BUT AGAIN, I JUST FELT THAT I NEEDED TO KIND OF EXPRESS.

WHERE I THINK WE'RE TRYING TO GO, BUT ALSO EXPRESS A LIMIT OF COMMITMENT THAT ALL THE OTHER THINGS THAT WE'RE TALKING ABOUT, THAT WE'RE STILL COMMITTED TO BE HERE TO WORK THROUGH. IS THAT SOMETHING THAT ALL HAS TO BE RESOLVED TO TONIGHT OVER THE NEXT FEW MONTHS? BUT THANK YOU, MAYOR. I APPRECIATE THAT, SHANNON.

THAT WAS REALLY HELPFUL.

THANK YOU.

VICE MAYOR. THANK YOU.

ARE YOU DONE? COUNCIL MEMBER HARRIS.

QUESTIONS? OKAY.

THANK YOU SO MUCH, DIRECTOR.

JONES. REALLY APPRECIATE IT.

I'M SO GLAD THAT YOU'RE A PART OF THE TEAM.

FLAGSTAFF. I FEEL THAT YOU.

CAME TO US AT EXACTLY THE RIGHT TIME, AND YOU'RE EXACTLY THE RIGHT PERSON FOR THE ROLE THAT YOU'RE IN.

I REALLY, REALLY FEEL THAT WE'RE IN GOOD HANDS WITH YOU.

SORT OF. LEADING THE CHARGE HERE.

I'M READY TO MAKE SOME COMMENTS AND SOME SUGGESTIONS.

THANK YOU FOR THIS MATRIX.

I THINK IT'S GOING TO BE VERY HELPFUL.

I WAS WONDERING HOW CLUNKY THIS PROCESS WAS GOING TO GET THIS EVENING, BUT BUT HAVING THIS MATRIX TO GO THROUGH.

FEELS TO ME LIKE IT'S GOING TO BE A NICE, SMOOTH WAY TO TO SORT OF SUM THINGS UP, EVEN THOUGH THERE'S LOTS OF MOVING PARTS.

I REALLY WANT TO CONTINUE THE EQUITY CONVERSATION.

I APPLAUD F3 FOR CHAMPIONING THAT.

THAT VOICE IN THE ROOM.

DEFINITELY SOMETHING WE NEED TO KEEP KNOCKING AT.

SOMETHING THAT WE'RE NOT CLOSE TO THE FINISH LINE ON.

I WILL SAY THAT I DO THINK WE NEED TO MOVE FORWARD WITH WITH THIS RATE STUDY TONIGHT.

I DON'T WANT TO DELAY ANY FURTHER.

I THINK WE GET WE OPEN A CAN OF WORMS IF WE KEEP KICKING THIS DOWN THE ROAD.

SO YOU KNOW, MOST NORTHERN ARIZONA COMMUNITIES ARE OR HAVE RECENTLY INCREASED RATES.

MOST PEER CITIES THROUGHOUT THE WEST ARE HAVING THIS CONVERSATION RIGHT NOW.

[04:30:02]

AND I MENTIONED THAT NOT NOT NOT TO SAY THAT, YOU KNOW, MONKEY SEE MONKEY DO, BUT JUST TO JUST TO RECOGNIZE THAT WE'RE IN GOOD COMPANY.

AND I THINK GREAT CITIES THINK ALIKE.

AND IT'S, IT'S UNFORTUNATE THAT THIS HAS LANDED IN OUR LAP.

AND THAT THIS CONVERSATION HAS BEEN PUNTED FOR AS LONG AS IT HAS.

BUT THIS IS WHAT WE SIGNED UP FOR.

THIS IS. WE'RE HERE NOW.

THIS IS OUR CHALLENGE, AND I FEEL THAT WE NEED TO TACKLE IT HEAD ON.

YOU KNOW, I, I DON'T WANT TO BE TOO BLUNT ABOUT THIS, BUT I THINK THAT WHATEVER WE DECIDE, IT'S GOING TO BE A SHOCK TO THE SYSTEM. I DON'T THINK WE'RE GOING TO GET A LOT OF CREDIT FOR UNDERCUTTING THE RECOMMENDATIONS THAT HAVE COME BEFORE US.

BUT WE WILL BE LOSING CAPACITY TO ACHIEVE OUR NEEDS AND GOALS.

SO THAT'S SOMETHING TO KEEP IN MIND.

THERE'S BEEN A LOT OF FOCUS ON HOW MUCH THIS IS GOING TO HURT, BUT.

THAT'S AT THE EXPENSE OF REALLY, HONESTLY IGNORING THE FACT OF HOW MUCH IT'S GOING TO HURT IF WE DON'T TAKE THIS ON.

FULL STEAM AHEAD.

I THINK IT'S IMPORTANT TO CONSIDER THE PAIN THAT THIS IS GOING TO CAUSE.

THERE'S A LOT OF VOICES OUT THERE.

I HOPE THEY FELT HEARD IN THIS CONVERSATION.

I HOPE THAT THEY'VE HAD THE CHANCE TO EXPRESS THEIR CONCERNS AND THAT THEY'RE AWARE OF WHAT'S GOING ON, AND WE'LL BE ABLE TO PREPARE FOR WHAT'S COMING.

I UNDERSTAND, YOU KNOW, I SAID A COUPLE OF WEEKS AGO, THOSE WHO ARE CLOSEST TO THE PROBLEM CAN'T AFFORD TO PHILOSOPHIZE.

WELL, THIS IS GOING TO BE VERY REAL IN A LOT OF POCKETBOOKS, AND I'M NOT AS CONCERNED ABOUT HOUSEHOLDS.

I AM CONCERNED ABOUT HOW THE THE BURDEN OF THIS IS GOING TO HIT OUR BUSINESSES PRETTY HARD.

AND I JUST WANT TO ACKNOWLEDGE THAT.

I ALSO BELIEVE THROUGH ALL THIS THAT THE PROPOSED RATES ARE NECESSARY.

OUR FORMER WATER CHAIR, COMMISSIONER, CHAIR HAS SAID AS MUCH, AND I FULLY WANT TO ECHO THOSE SENTIMENTS.

YOU KNOW, THE EXPENSES THAT WE INCUR FOR GETTING GETTING INTO THIS ARE THE CHEAPEST THEY'RE EVER GOING TO GET TODAY.

SO ANY TIME WE'RE TALKING ABOUT MAYBE NOT ADDRESSING THIS, WE'RE DOING A FUTURE COUNCIL AND WE'RE DOING A FUTURE COMMUNITY A DISSERVICE.

IT'S NEVER GOING TO GET BETTER THAN IT IS TODAY FOR US TO START TACKLING THESE PROBLEMS. AND. YOU KNOW.

I'VE SAID THIS BEFORE, I'LL SAY IT AGAIN BECAUSE, YOU KNOW, IT'S JUST PART OF THE ONGOING CONVERSATION.

MY UNDERSTANDING AS A COUNCIL MEMBER IS, IS, YOU KNOW, I'M A I'M A RESIDENT, TOO.

I'M A CITIZEN OF FLAGSTAFF AS WELL.

AND. I BELIEVE THAT EVERYBODY IN TOWN, WHEN THEY WAKE UP IN THE MORNING THINKING ABOUT THE CITY AND WHAT THEY WANT FROM THEIR MUNICIPALITY AND WHAT THEY WANT FROM THEIR COUNCIL, THEY WANT THEIR WATER TO TURN ON, THEY WANT THEIR TOILET TO FLUSH, AND THEY WANT THEIR TRASH TO BE PICKED UP.

SO THIS IS ONE OF THE MOST IMPORTANT CONVERSATIONS WE CAN BE HAVING UP HERE.

I'M PROUD TO FIND OURSELVES IN THE MOMENT WHERE I CAN BE AN INFLUENCE AND PARTICIPATE IN THIS.

A LOT OF THIS NUMBER CRUNCHING GOES OVER MY HEAD.

WE HAVE THE EXPERTS IN THE ROOM, WE HAVE THE ANSWERS IN THE ROOM ON THAT, ON THAT REGARD, AND I AM TRUSTING AND RELYING ON THOSE VOICES A LOT.

BUT IT'S A REAL PRIVILEGE TO BE ABLE TO SAY THAT I HAVE A ONE OF SEVEN VOICES ON ON HOW THIS GOES.

THIS IS INCREDIBLY IMPORTANT.

IT'S INCREDIBLY SIGNIFICANT.

AND I'M GLAD TO BE HERE.

I DON'T WANT TO JUST SQUEAK BY WITH WITH WHAT NEEDS TO HAPPEN IN THE COMMUNITY.

I REALLY UNDERSTAND, STEVE.

YOU KNOW WHERE YOU'RE COMING FROM WITH GROWTH RATES.

I THINK THOSE ARE GREAT CONVERSATIONS.

I'M REALLY NOT TRYING TO BE DISMISSIVE OF IT, BUT I, I SEE THIS AT AT A SORT OF DIFFERENT LEVEL OF RESOLUTION THAN THAT.

I WANT TO MOVE FORWARD.

AND I WANT I DON'T WANT TO JUST BE PLAYING CATCH UP.

I REALLY WANT TO POSITION FLAGSTAFF.

TO PARTICIPATE IN THE MODERN ERA OF WATER SERVICES.

AND THAT'S, THAT'S REGARDLESS OF OF HOW BIG OUR CITY GETS AND HOW QUICKLY IT GETS THAT BIG.

SO THOSE ARE JUST SOME THINGS THAT ARE ON MY MIND THAT I'M THINKING ABOUT.

I JUST WANTED TO ADD LASTLY TO THAT.

YOU KNOW, THERE'S I'VE BEEN HAVING A LOT OF CONVERSATIONS AROUND TOWN WITH WITH PEOPLE I'M, YOU KNOW, VERY COMFORTABLE TALKING WITH AND WITH PEOPLE THAT WHOSE, WHOSE

[04:35:07]

DIFFERENCES OF OPINION I VALUE.

AND I WANT TO REALLY UNDERSTAND AND FEEL THAT I CAN FEEL THAT THOSE VOICES ARE BEING HEARD.

YOU KNOW, THERE'S THERE'S TALKS ABOUT HOW WE COULD BE SPENDING MONEY DIFFERENTLY AND THIS WOULDN'T BE SUCH A BIG PROBLEM.

I'M NOT SURE THAT THAT'S TRUE.

THIS IS A VERY BIG PROBLEM.

AND THE OTHER CONVERSATIONS ARE DROPS IN THE BUCKET COMPARED TO IT.

WE COULD WE COULD TALK ABOUT, FOR EXAMPLE, THE MONEY WE'RE SPENDING ON NORSCOT TO WEATHERIZE OUR FACILITIES.

WE WE HAVE SPENT THAT MONEY 19 TIMES OVER AGAIN WITH THE CONVERSATIONS ON HOW WE COULD HAVE SPENT IT, INSTEAD OF SPENDING IT ON THAT.

I DON'T THINK THAT'S A RELEVANT PART OF THIS CONVERSATION.

AND, YOU KNOW, I THINK IT'S REALLY TRUE THAT IF WE WANT TO COMPLAIN, WE NEED TO TALK ABOUT THE ARIZONA STATE LEGISLATURE.

FOR FAR TOO LONG, TAXES HAVE BEEN TOO LOW, AND WHEN AND WHEN WE END UP GETTING A TAX SURPLUS, IT ENDS UP BEING GIVEN AWAY TOO QUICKLY. THIS CONVERSATION MIGHT NOT BE SO DIFFICULT IF WE HAD MONEY IN THE COFFERS AT THE STATE LEVEL, THAT COULD BE DISTRIBUTED TO US FOR THESE PURPOSES. THAT IS DOUBLY TRUE WHEN IT COMES TO KNOW YOU AND THE AWKWARD, AWFUL POSITION THAT THEY'RE IN WITHIN THIS CONVERSATION. THEY'RE BEING LEFT WITH A BIG BILL, BUT I DON'T THINK IT'S BECAUSE THIS COUNCIL IS PUTTING A BIG BILL ON THEM.

THE PROBLEM HAS BEEN DECADES OF UNDERFUNDING OUR OUR STATE UNIVERSITY SYSTEMS AND UNDERFUNDING NIU IN PARTICULARLY WORSE THAN THEIR UNDERFUNDING THE OTHER TWO MAJOR UNIVERSITIES.

SO I THINK THAT NEEDS TO BE IN THE CONVERSATION.

IN TERMS OF MY RECOMMENDATIONS, I'M FEELING PRETTY BULLISH HERE.

AS YOU CAN PROBABLY TELL.

I DON'T THINK MY POSITION HAS CHANGED MUCH.

SO THIS IS FAIRLY CONSISTENT WITH DIRECTION I'VE ALREADY PROVIDED.

I DO THINK FOR GROWTH WE NEED TO LOOK AT HIGH, MAYBE MEDIUM FOR ESCALATION.

I'M A FIRM HIGH ON THAT.

FOR TOTAL CIP FUNDING, I WOULD PUT WATER AT AT 95% INSTEAD OF 90%.

I WOULD I'M, I'M I'M HESITANT ON WASTEWATER.

MAYBE WE CAN MEET IN THE MIDDLE THERE HIGH TO MEDIUM.

FOR DEBT FINANCING.

I AM WILLING TO GO THERE.

I THINK SOMETHING BETWEEN MEDIUM AND HIGH FOR BOTH WATER AND WASTEWATER WOULD WOULD HELP EASE THE THE SHOCK OF THIS A LITTLE BIT.

THAT'S ALL I HAVE TO SAY. THANK YOU.

THANK YOU SO FOR WASTEWATER YOU SO YOU SAID FOR WATER AND WASTEWATER MEDIUM TO HIGH.

BUT BECAUSE WASTEWATER ONLY HAS THE MEDIUM I'M GUESSING THAT THAT.

THAT'S IT.

OKAY. THANK YOU.

COUNCIL. WHO WANTS TO GO NEXT? OR COUNCIL MEMBER HOUSE WOULD YOU LIKE TO FINISH? SURE. SO JUST GOING BACK ON THE ON THE GROWTH FACTOR, I THANK YOU, MR. PER, FOR POINTING OUT THE THE DIFFERENCE BETWEEN THE ACCOUNTS AND THE THE POPULATION GROWTH.

HOWEVER, WHAT I WAS LOOKING AT WAS THE FACT THAT THE GROWTH IN ACCOUNTS ON AVERAGE PER YEAR HAS BEEN ON PAR WITH THE ACTUAL AVERAGE GROWTH IN POPULATION.

THAT'S WHY I WAS MORE COMFORTABLE STICKING IN THAT KIND OF SIMILAR RANGE.

BUT I WOULD AGREE WITH VICE MAYOR ON I WAS ALREADY KIND OF AT THE MEDIUM POINT, SO I THINK I WOULD STICK THEIR ESCALATION. I'VE BEEN GOING BACK AND FORTH BETWEEN 3.5 AND 4.5, SO I'D BE WILLING TO GO HIGH.

WITH THE DEBT FINANCING, I AGAIN AGREE, I THINK WITH VICE MAYOR ON BEING WILLING TO USE THAT AS A BIT OF A THRESHOLD FOR PROVIDING THAT LEVEL OF SUPPORT.

SO LEANING HIGH AND OF COURSE WITH THE WASTEWATER, THE MEDIUM NUMBER IS THAT 30%.

THE ONE THING THAT I AM STILL GOING BACK AND FORTH ON IS THE TOTAL CIP FUNDING.

AND I WANT TO MAKE SURE THAT I UNDERSTOOD WHAT DIRECTOR JONES, WHAT YOU SHARED ABOUT THAT COMPLICATION FOR FOR YOU AND THE DIVISION, WERE YOU SAYING THAT THE 100 RANGE OR EVEN THE 90 WAS A UNCOMFORTABLE POSITION FOR

[04:40:01]

FOR YOUR DIVISION ON THAT POINT? OR WAS THAT SOMETHING ELSE THAT YOU WERE TALKING ABOUT? MAYOR COUNCIL MEMBER NO, I THINK THE POINT I WAS JUST TRYING TO MAKE WAS AGAIN, I'M VERY SIMILAR, LIKE HAVING 100% FUNDED CIP MAKES A LOT OF SENSE ON A LOT OF LEVELS.

I WAS SAYING, OPERATIONALLY THERE'S BEEN QUESTIONS ABOUT HOW DO YOU DELIVER 100% OF CIP, HOW DO YOU DO ANYTHING 100%? HOW DO YOU BE PERFECT CONSTANTLY.

SO I THINK WHAT I WAS VERBAL WAS VERBALIZING IS SO SEEING THAT THAT DOES MOVE THE NUMBER ON THE IMPACT AND MOVING THAT DOWN, IF THAT ALSO LIKE TOOK SOME PRESSURE OFF. SO AGAIN, I'M, I'M HERE FIVE YEARS FROM NOW MAY NOT BE THE SAME COUNCIL MAYBE SOME OF THE SAME AND SAYING, WHERE'S THAT LIST? AND HAVE YOU CHECKED EVERYTHING OFF THAT LIST? HAVE YOU BEEN 100%? BECAUSE WE JUST WENT THROUGH THAT WITH THE 2015 LIST AND SOME OF OUR MEETINGS, AND IT'S LIKE, ACTUALLY IT'S ABOUT 80%.

THERE'S SOME THINGS WE'RE WORKING ON.

RIGHT. BUT OVER THE LAST EIGHT YEARS, WE'VE ONLY WE'VE ONLY COMPLETED ABOUT 80% OF IT.

SO I THINK WHAT I WAS TRYING TO VERBALIZE IS THE, THE EXPECTATION OF, YES, WE SHOULD HAVE 100% FUNDING, WE SHOULD DO WHAT WE NEED TO DO OPERATIONAL WISE, PERFORMING AT THAT LEVEL. THAT'S WHAT WE'VE BEEN TRYING TO WORK ON.

PEOPLE HAVE BEEN ASKING THE QUESTIONS.

WE'RE PUTTING THE THINGS IN PLACE. HOW CAN I DO THAT SUCCESSFULLY? SO I THINK WHAT I WAS MENTIONING IS I FELT LIKE I WAS IN A OPERATIONAL WISE, WOULD BE IN A BETTER PLACE IF THE EXPECTATION WAS, IS THAT WHAT IF YOU COMPLETED 90% OF THE CIP? 90%? THINK THAT WAS A PRETTY GOOD GRADE WHEN I WAS GOING TO SCHOOL, LIKE 90 WAS GOOD.

SO I THINK I WAS JUST TRYING TO FRAME THAT, THAT WE WANT TO BE COMPLETELY FUNDED, WE WANT TO DO THE WORK.

RIGHT. BUT THAT EXPECTATION OF KNOWING THAT EVERYTHING IS GOING TO BE PERFECT 100% ALSO COMES WITH AN OPERATIONAL BURDEN.

AND I'D LIKE THE RECORD TO REFLECT THAT, SHANNON SAID.

HE WILL BE HERE FIVE YEARS FROM NOW.

CAN THAT BE IN THE COUNCIL MEMBER.

THANK YOU. I AGREE WITH YOU ON THAT, MAYOR.

SO THANKS FOR THAT CLARIFICATION.

AND SO I THINK ON THOSE NUMBERS, THEN I'LL STICK AT THE 90.

AS AS WHERE I'M LEANING.

AND THEN ALSO JUST IN IN CLOSING, I THINK I ALSO AM IN AGREEMENT WITH BOTH VICE MAYOR AND COUNCIL MEMBER HARRIS ON THE NEED TO REALLY HONE IN AND FOCUS IN ON THAT EQUITY QUESTION.

I THINK THAT'S GOING TO BE A HUGE POINT OF OF THE CONVERSATION THAT NEEDS TO BE REALLY MEASURED AND EXAMINED TO ENSURE THAT WE ARE NOT OVERBURDENING PARTS OF OUR POPULATION, THAT WE ARE OFFERING THE SUPPORTS THAT WE CAN. WHERE IT'S IT'S NECESSARY.

AND THAT'S ALSO PART OF THE REASON WHY I WENT BACK ON THAT ONE STUDY AND ASKED THAT CLARIFYING QUESTION, BECAUSE THE REALITY IS, FOR OUR COMMUNITY, THE MAJORITY OF OF THOSE I WOULD VENTURE TO GUESS WHO ARE FALLING INTO THOSE LOWER INCOME LEVELS ARE LIVING IN EITHER RENTAL HOMES OR MULTIFAMILY DEVELOPMENTS.

AND SO THE NEED TO CONSIDER HOW THIS IS IMPACTING THOSE AND THE DEVELOPMENT OF OF FUTURE HOUSING IS ALSO VERY IMPORTANT TO ME, AS WELL AS THE CONVERSATIONS AROUND HOW THIS IS IMPACTING OUR BUSINESS COMMUNITY PARTICULARLY THE SMALL BUSINESSES THAT ARE SEEING A LOT OF THESE PRESSURES ON, ON A NUMBER OF DIFFERENT TOPICS, WHETHER WE'RE TALKING ABOUT WEATHER OR WATER RATES MINIMUM WAGE. INSURANCE RATES.

ALL OF THESE DIFFERENT CONVERSATIONS THAT ARE COMING AT THE SAME TIME AND CIRCLING IN AND AROUND EACH OTHER.

I THINK WE NEED TO ALSO KEEP THAT IN MIND AND OFFER THE SUPPORTS THAT WE CAN.

AND WHERE WE CAN TO, TO MITIGATE THOSE AND ENSURE THAT THOSE PARTS OF OUR COMMUNITY KNOW THAT WE ARE NOT SIMPLY LEAVING THEM ON THEIR OWN, BUT WE ARE TAKING THAT INTO CONSIDERATION.

THANK YOU, MAYOR. THANK YOU.

COUNCIL MEMBER SWEET. THANK YOU.

ALL RIGHT. I'M SO HAPPY WE'RE HERE TONIGHT DOING THIS.

IT FEELS GOOD. SO A COUPLE OF THOUGHTS, AND THEN I'LL GO INTO MY RECOMMENDATIONS.

I JUST WANT TO REMIND THAT WE DID SAY WE COULD DO A YEARLY REVIEW WITH LIVE UPDATES ON THE WEBSITE, THE CLEAN WATER FLAGSTAFF WEBSITE, AND I WOULD LIKE TO SEE THAT HAPPEN.

AND IN THE VERY NEAR FUTURE, I WOULD LIKE TO CONTINUE THE CONVERSATION ABOUT EQUITY AND AFFORDABILITY IN THE RESIDENTIAL CATEGORY.

AND I ALSO WOULD LIKE TO, IN THE NEAR FUTURE, TALK ABOUT RECLAIMED WATER RATES.

SO AS FOR MY MATRIX GROWTH, I WOULD LIKE TO PROPOSE A 1% ESCALATION, THE

[04:45:05]

3.5% THIS CIP FUNDING.

I'D LIKE TO DO 80% ON WATER AND WASTEWATER.

AND FOR THE DEBT FINANCING, I WOULD LIKE TO GO IN BETWEEN THE LOW AND MEDIUM.

SO SOMEWHERE IN BETWEEN 30% TO 43%, 21% TO 30%.

THANK YOU. THANK YOU.

MAYOR. I'M SORRY IF I MIGHT.

JUST A CLARIFICATION BEFORE I WAS ASKED ABOUT A MOTION.

THERE WON'T BE A MOTION ON THIS.

IT'S JUST DIRECTION TONIGHT.

BUT IF THE DIRECTION IS 3 TO 3 OR 3 TO 2 AND ONE, IT STILL HAS TO BE FOR GIVING THE DIRECTION IS THE BEST WAY TO PUT IT.

THANK YOU SIR.

GO AHEAD. COUNCIL MEMBER.

SO I AM GOING TO TAKE SOME TIME TO DO A PERSONAL PRIVILEGE HERE.

I DO SIT IN A IN A SEAT OF PRIVILEGE.

AND I KNOW THAT THIS INCREASE I'M GOING TO FIGURE IT OUT, EVEN THOUGH I'M RETIRED AND WORKING ON A FIXED INCOME.

IT'S NOT GOING TO HURT ME.

I'M GOING TO BE ABLE TO PAY THAT WATER BILL BECAUSE I'M GOING TO BE ABLE TO FIGURE IT OUT.

I HAVE THE RESOURCES TO DO THAT.

BUT I'M GOING TO WAKE UP EVERY MORNING OR GO TO BED EVERY NIGHT THINKING ABOUT THOSE FOLKS WHO CAN'T PAY THAT BILL, WHATEVER THAT BILL IS. AND I DON'T EVER WANT US TO FORGET THAT THERE ARE PEOPLE IN OUR COMMUNITY.

WHO ARE IN A PLACE.

OF NO PRIVILEGE AND THIS IS REAL FOR THEM.

AND SO I WILL PERSONALLY DO WHATEVER IT IS I CAN TO BE A SUPPORT.

BUT I'M GOING TO KEEP COMING BACK TO US EVERY TIME WE'RE AT THIS.

AS LONG AS I'M HERE TALKING ABOUT THOSE FOLKS WHO ARE NOT SITTING IN SEATS OF PRIVILEGE.

AND SO I THINK THAT IT'S BENEFICIAL FOR ALL OF US TO THINK ABOUT THAT.

PLEASE. SO FOR MY VOTE HERE I'M GOING TO PROBABLY GO.

THE FOR GROWTH.

I'M GOING TO GO AHEAD AND DO THE 1% FOR ESCALATION.

I'LL DO THE 3.5 WATER.

I'M WITH. COUNCIL MEMBER SWEET.

AND I'M GOING TO LOOK AT 85, 80 TO 85% IF WE COULD DO THAT.

WASTEWATER.

PROBABLY THE SAME.

AND THEN DEBT, THE CPA CIP.

I'D LIKE TO BE IN THE MIDDLE OF THOSE TWO NUMBERS, WHATEVER THAT IS.

SO BETWEEN LOW AND MEDIUM.

YES, YES.

LOW AND MEDIUM OF BOTH OF THOSE.

YES, YES.

THANK YOU. NO I HAVEN'T.

NO, YOU GO AHEAD.

USUALLY THE MAYOR GOES LAST BECAUSE SHE'S MOST IMPORTANT.

ALL RIGHT. I'LL MAKE A QUICK COMMENT HERE, AND THEN I'LL GIVE YOU MY RATINGS.

WE KEEP USING THE WORD EQUITY.

I THINK WHAT WE'RE REALLY GETTING AT IS WE WANT TO REDUCE THE COST FOR LOW INCOME PEOPLE SOMEHOW.

AND I CAN ONLY THINK OF ONE WAY TO DO THIS.

THIS EVERYTHING HERE IS A ZERO SUM GAME.

WE CAN SHIFT THE MONEY FROM HERE AND PUT IT OVER HERE.

WHATEVER. BUT IF YOU WANT TO REALLY LOWER THE COST, YOU HAVE TO COME UP WITH SOME NEW MONEY.

NOW, I LIVE IN A HOUSE, BUT I ALSO HAVE A RENTAL HOUSE.

AND I WILL TELL YOU THAT MY RENTERS PAY THE WATER BILL, SO IT HAS NO IMPACT ON ME.

SO. BUT PROPERTY TAXES, I PAY THE PROPERTY TAXES.

SO IT OCCURS TO ME THAT WE COULD TAKE SOME MONEY OUT OF THE WATER AND PAY IT WITH PROPERTY TAXES, AND I CAN DEDUCT MY PROPERTY TAXES.

I CAN'T DEDUCT THE COST OF WATER THAT MY RENTERS PAY.

SO I DON'T KNOW IF THAT'S A GOOD IDEA OR NOT.

BUT WHEN WE TALK ABOUT EQUITY, WHICH APPARENTLY WE'LL TALK ABOUT SOMETIME IN THE FUTURE THERE'S AN IDEA THAT HAS SOME ADVANTAGES.

I'M NOT NECESSARILY SUPPORTING THAT.

I'M JUST THROWING IT OUT AS AN IDEA BECAUSE I BASICALLY FEEL THAT WATER SHOULD PAY ITS OWN WAY.

BUT IF WE WANT TO COME UP WITH SOME OTHER WAY.

[04:50:04]

THE PROPERTY, INCREASED THE PROPERTY TAX, REDUCED THE COST OF WATER.

THAT'S A POSSIBILITY.

ALL RIGHT, SO LET ME GO TO MY RATINGS HERE.

I SAY FOR GROWTH, 1% ESCALATION.

3.5% CIP FUNDING.

90%. FOR WATER AND WASTEWATER.

AND DEBT FINANCING AS A PERCENT OF CIP.

I WILL. SOMEWHERE BETWEEN THE SO-CALLED LOW AND MEDIUM.

OKAY. THANK YOU.

FOR BOTH. THANK YOU.

AND, CAROL, WHEN YOU SAID THAT YOU COULD HAVE THE NEW NUMBERS, DID YOU MEAN TONIGHT OR AT A FUTURE DATE OR EMAILED TO ME? OH, MAYOR FOR THE FOR THE QUESTION ON THE CAPACITY FEES.

YES. I COULD GET THAT TO YOU TOMORROW.

OKAY. TOMORROW.

ALL RIGHT. SO.

GROWTH 1% ESCALATION 3.5.

TOTAL CIP FUNDING BETWEEN 85 AND 90 ON BOTH DEBT FINANCING.

MEDIUM ON BOTH AND.

I WON'T MAKE A LOT OF COMMENTS, BUT HOPEFULLY, HOPEFULLY THOSE WHO HAVE BEEN PAYING ATTENTION SEE THAT WE HAVE BEEN LOOKING AT THIS ISSUE FROM EVERY IMAGINABLE ANGLE, AND HAVE READ THROUGH VOLUMES OF MATERIAL AND SPOKEN TO TENS OF DOZENS OF COMMUNITY MEMBERS.

AND SO WE HAVE THOUGHTFULLY AND CAREFULLY CONSIDERED ALL OF THE ISSUES THAT HAVE BEEN DISCUSSED TONIGHT, AND ULTIMATELY, ANY WATER RATE INCREASE IS NOT GOING TO BE POPULAR, AND WE'RE NOT GOING TO BE POPULAR FOR DOING THIS.

BUT WE WERE ELECTED TO MAKE THE HARD DECISIONS, AND WE HAVE TO GUARANTEE OUR WATER FUTURE, AND WE HAVE TO ENSURE THAT WE'RE BEING THE BEST GUARDIANS OF THE WATER AND PROVIDING THE EXCELLENCE THAT FLAGSTAFF RESIDENTS HAVE COME TO EXPECT WHEN THEY TURN ON THEIR TAP WATER.

SO I DON'T THINK ANY OF US DO THIS WITH GREAT EXCITEMENT.

AND ALL OF US ARE CONCERNED ABOUT THE BURDEN THAT IT MAY PLACE ON CERTAIN RESIDENTS OR BUSINESSES.

AND. I THINK AN IMPORTANT POINT, AND IT SEEMS LIKE IT WOULD GO WITHOUT SAYING, BUT THIS ISN'T A OH, WE JUST THINK WE'LL RAISE YOUR RATES.

I MEAN, WE HAVE TO BE RESPONSIBLE WITH LOOKING INTO THE FUTURE OF WHAT WE NEED TO DO WITH DEVELOPING NEW WATER SOURCES, DIGGING WELLS AND WHATNOT.

WHAT FORTH.

THAT'S NOT A WORD.

AND WASTEWATER.

SO WE DON'T MAKE THIS DECISION LIGHTLY.

NONE OF US DO.

AND I JUST WANT TO MAKE SURE THAT I SAID THAT.

SO. I MEAN, WE WERE WE WERE MOSTLY IN ALIGNMENT. SO THEN WHAT, LIKE STERLING? OKAY, SO IF IF TWO OF US SAID 80 ON ONE AND THEN THREE OTHERS SAID 85 ON ANOTHER CAN WE COUNT THIS AS I MEAN, I'M LOOKING I HAVE IT ALL WRITTEN DOWN IN FRONT OF ME AND AND TO ME, THIS IS ROUGHLY CONSENSUS.

YEAH, YOU'RE ASKING A LAWYER A MATH QUESTION, WHICH IS USUALLY A BAD IDEA THAT TYPICALLY IS JUST GOING TO BE AVERAGED OUT AS A CONSENSUS.

AND I THINK YOUR QUESTION TO CAROL ALREADY WAS, WHAT WILL THOSE NEW NUMBERS BE? I THINK THAT'S I'LL LEAVE THAT TO THE CONSULTANTS AND SHANNON AND AARON BECAUSE THEY HAVE THE MATH BRAINS.

OKAY. SO COUNCIL, YES, I SAW CONSENSUS.

I THINK GREG DID. GREG LOOKS VERY STERN RIGHT NOW.

JUST LISTENING.

[04:55:01]

COUNCIL DO YOU FEEL COMFORTABLE WITH WITH ME STATING THAT THIS IS ROUGHLY CONSENSUS? OKAY, I DO. I FEEL LIKE WE'VE ARRIVED AT A NICE VECTOR HEADING HERE WITH A LITTLE TUG AND PULL, AND IT'S WORKING OUT WELL, OKAY, I YES. COUNCIL MEMBER SWEET.

I JUST WANT TO ADD A QUICK COMMENT.

I HAVE SAID THIS BEFORE, BUT I'M GOING TO SAY IT AGAIN.

THIS TEAM WORKED SO HARD COUNCIL THE COMMUNITY.

EVERYONE PULLED IT TOGETHER AND I JUST CANNOT THANK YOU ENOUGH.

AARON AND SHANNON JONES AND SHANNON ANDERSON THE AMOUNT OF TIME THAT YOU SPENT WITH ALL OF US AND ANSWERING OUR QUESTIONS DEFINITELY HAS BEEN NOTICED.

AND I JUST I REALLY APPRECIATE ALL OF YOU.

THANK YOU. ALL RIGHT.

AND, ZACH, HAS ANYONE TOLD YOU THAT YOU LOOK LIKE LIN-MANUEL MIRANDA? YOU'RE JOKING ME? NO, I HAVE THERE'S A RUNNING JOKE.

YEAH. MY FRIEND GROUP THAT THAT THAT.

YEAH, I LOOK LIKE LIN-MANUEL MIRANDA.

THAT'S SO FUNNY.

I HAD NEVER HEARD THAT ANYWHERE ELSE UNTIL JUST NOW.

MAIER. HE'S NOT THROWING.

I HAVE NO TALENT LIKE THAT.

SO STICK TO STICK TO WATER RATES.

ALL RIGHT, SO THANK YOU.

STANTEC. THANK YOU.

STAFF. THANK YOU.

COUNCIL. THIS IS THIS HAS BEEN A LOT OF WORK, AND I APPRECIATE THAT, EVERYONE.

YES. NEXT WATER RATE DISCUSSION SET TO HAMILTON LYRICS.

BUT I APPRECIATE THAT EVERYONE TOOK THIS SO SERIOUSLY, AND AND I YEAH, THAT'S WHAT I'LL SAY.

ALL RIGHT. I DON'T SEE ANY COMMENTS FOR OPEN CALL TO THE PUBLIC AND COUNCIL.

DO YOU WANT TO SKIP INFORMATIONAL ITEMS? OKAY, WE'LL CATCH UP NEXT TIME.

UNLESS CITY MANAGER.

IS THAT OKAY WITH YOU? DID YOU? OKAY, SO NEXT TIME.

OH, BOY.

WE'RE ADJOURNED.

THANK YOU ALL. THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.