Feb 03, 2022 City Council Budget Retreat

MAYOR, IT'S YOURS.

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[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 work session, the City Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion 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).]

IT IS OUR CITY COUNCIL BUDGET RETREAT OF FEBRUARY 3RD CALLING TO ORDER.

JUST TO NOTE TO THE PUBLIC THAT THE COUNCIL MAY VOTE TO GO INTO EXECUTIVE SESSION FOR LEGAL ADVICE ON ANY OF THE AGENDA ITEMS. ROLL CALL, PLEASE. MAYOR DEASY HERE.

VICE MAYOR DAGGETT.

HERE, COUNCIL MEMBER ASLAN.

GOOD MORNING, EVERYBODY, I'M HERE, COUNCIL MEMBER MCCARTHY HERE.

COUNCIL MEMBER SALAS.

HOWDY AND GOOD MORNING, EVERYONE.

COUNCIL MEMBER SHIMONI.

STILL SLEEPING, JUST KIDDING I'M HERE.

COUNCIL MEMBER SWEET. GOOD MORNING, I'M HERE.

EXCELLENT, WELL, COUNCIL MEMBER MCCARTHY, WOULD YOU MIND LEADING US IN THE PLEDGE OF ALLEGIANCE, PLEASE? I WILL THANK YOU FOR THE PRIVILEGE OF DOING THAT.

PLEASE STAND IF YOU CAN.

THANK YOU, MAYOR. THANK YOU, COUNCIL MEMBER MCCARTHY.

THE MISSION STATEMENT OF THE CITY OF FLAGSTAFF IS TO PROTECT, ENHANCE THE QUALITY OF LIFE FOR ALL COUNCIL MEMBER ASLAN, WOULD YOU PLEASE READ OUR LAND ACKNOWLEDGMENT? THANK YOU VERY MUCH.

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 EVER KNOW THIS PLACE IS HOME.

THANK YOU, COUNCIL MEMBER ASLAN.

AND IF YOU CAN SEE MY BREATH.

THAT'S BECAUSE I'M FREEZING IN AN OUTDOOR OFFICE RIGHT NOW THAT THE SPACE HEATER HAS NOT TAKEN CARE OF YET.

BUT THIS BRINGS US TO OUR AGENDA ITEM NUMBER FOUR, WHICH IS THE CITY COUNCIL FISCAL YEAR

[4. City Council Fiscal Year 2022-2023 Budget Retreat STAFF RECOMMENDED ACTION: Discuss and provide direction for the Fiscal Year 2022-2023 budget.]

MS. LANCE AND OUR CITY STAFF.

PLEASE TAKE US AWAY.

I MIGHT START MAYOR AND COUNCIL IF I MAY, AND I WILL INTRODUCE NICOLE LANCE, WHO HAS BEEN WITH US BEFORE SERVING IN THIS CAPACITY.

NICOLE BRINGS A RICH BACKGROUND OF MUNICIPAL GOVERNMENT EXPERIENCE, AND SHE HAS BEEN WITH THE LANCASTER LEADERSHIP TEAM FOR SOME TIME.

AND WE HAVE USED HER GREAT SERVICES IN THE PAST AND WE'RE HONORED TO HAVE HER AGAIN WITH US TODAY AND TOMORROW.

NICOLE, GOOD MORNING TO YOU IN A SECOND, I'LL BE TURNING IT OVER TO YOU TO DO WHAT YOU DO WELL, BUT I THOUGHT I WOULD KICK IT OFF BY THANKING EVERYBODY FOR BEING HERE ON THIS CHILLY MORNING.

MAYOR, I HOPE YOUR HEATER IS WORKING.

IT WAS COLD LAST NIGHT WHEN I FIRST GOT UP THIS MORNING WE WERE WE WERE DOWN AROUND SEVEN DEGREES, AT LEAST IN MY NEIGHBORHOOD.

BUT THE BIGGER STORY IS THE WIND CHILL.

AND SO HERE WE ARE FEBRUARY AFTER GROUNDHOG DAY, BUT WE'RE BACK INTO THE DEPTHS OF WINTER MINUS THE SNOW, AND I THINK THOSE COLD TEMPERATURES ARE GOING TO BE WITH US TONIGHT AND TOMORROW NIGHT AS WELL.

SO THANKS EVERYBODY FOR BEING HERE, AND THIS IS A VERY IMPORTANT RETREAT.

AS ALWAYS, IN THESE RETREATS, WE HAVE THESE TO GIVE OURSELVES THE ENTIRE ORGANIZATION AND OUR ELECTED BODY AN OPPORTUNITY TO HAVE A FOREST THROUGH THE TREES SORT OF DISCUSSION. THIS IS, YOU KNOW, THE STATE OF THE CITY IN A SENSE IN TERMS OF WHAT'S CURRENTLY ON THE PLATE, WHAT LIES AHEAD.

AND OF COURSE, ALL OF THAT IS STRONGLY FOUNDED UPON WHERE WE ARE ECONOMICALLY.

YOU'RE GOING TO GET A PRETTY NICE AND VERY COMPREHENSIVE PRESENTATION TODAY ON THAT TOPIC, WHERE ARE WE FINANCIALLY, HOW OR HOW IS THE STATE OF THE CITY? AND THEN WE WILL SEGWAY INTO A LOT OF DISCUSSION ABOUT PROGRAMS AND PROJECTS AND PRIORITIES. THIS BUDGET RETREAT WILL AFFORD COUNSEL MORE OPPORTUNITY FOR WEIGH IN.

WE ALWAYS ENCOURAGE DIALOG, BUT I THINK THIS RETREAT IN PARTICULAR AND IN A SECOND YEAR, IF WE CAN MAYBE PULL UP OUR AGENDA, I DON'T KNOW WHO HAS THAT HANDY IS MAYBE HEIDI DAIRY

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BUT WE ARE GOING TO STRUCTURE THIS RETREAT IN A WAY THAT THANK YOU FOR THIS, THAT ALLOWS FOR A LOT OF ENGAGEMENT AND INTERACTION.

SO WE START OFF WITH HOUSEKEEPING MATTERS AND THEN WE SEGUE INTO THAT.

SO I'LL RUN THROUGH THE AGENDA BRIEFLY AND THEN I'M GOING TO TURN IT OVER TO NICOLE.

BUT WE WILL START OUT WITH A TIMELINE OF THE BUDGET.

WHERE ARE WE IN THAT PROCESS? TALK A LITTLE BIT ABOUT PRIORITY BASED BUDGETING REVENUE UPDATE, FIXED COSTS, AVAILABLE RESOURCES. WE'RE GOING TO GIVE YOU AN UPDATE ON WHERE WE ARE WITH OUR EMPLOYEES.

WE'LL ALSO GIVE AN UPDATE ON THE BOND COMMITTEE, FEDERAL FUNDING.

BIG TOPIC OF LATE.

AND THEN THE RESOURCE ALLOCATIONS AND PRIORITIES IS DESIGNED TO TAKE US WELL INTO THE AFTERNOON, AND WE WILL RESUME WITH THAT TOMORROW MORNING.

THAT WILL BE VERY MUCH A DIALOG WITH COUNCIL AND A LOT OF TIME ALLOCATED TO THAT DISCUSSION AND THEN END WITH COUNCIL FORUM.

SO WITH THAT AND THIS AGENDA CAN BE POSTED AGAIN AND AGAIN TO REMIND US WHAT WE'RE GOING TO BE TALKING ABOUT.

I WOULD LIKE TO TURN IT OVER TO NICOLE AND NICOLE I WOULD INVITE YOU TO WALK US THROUGH THE THE PROTOCOL, THE FORMAT FOR THIS RETREAT AND WE'LL GET INTO BUSINESS.

SOUND GOOD. SOUNDS GOOD.

I HAVE A NEW SETUP ON MY COMPUTER AND IT IS NOT SUPER CONDUCIVE TO SHARING MY SCREEN.

SO I JUST WANT TO KICK OFF WITH A QUICK REMINDER.

NUMBER ONE, THE FACILITATION FRAMEWORK THAT I USE IS THAT THAT IDEA OF POLARITY SO MANAGING BETWEEN TWO THINGS THAT ARE BOTH GOOD BUT SORT OF MUTUALLY EXCLUSIVE.

SO HAVING THE CONVERSATIONS WE NEED TO HAVE BUT MANAGING AN EFFICIENT PACE, ASKING FOR CLARITY AND TOLERATING AMBIGUITY WHEN WE NEED TO, AND I'LL BE MANAGING THROUGH THOSE.

YOU'RE FAMILIAR WITH THIS.

JUST AS A REMINDER, THE WAY THAT I WILL DO THAT WHEN I NEED TO BALANCE BETWEEN THOSE IS I WILL POP MY VIDEO ON.

I WILL PUT MY HAND OBNOXIOUSLY CLOSE TO THE CAMERA AND I WILL SAY PAUSE.

WE NEED TO PAUSE THE CONVERSATION SO YOU CAN START A BETTING POOL IF YOU WANT AMONGST WHO YOU THINK IS GOING TO BE THE FIRST PERSON THAT GETS PAUSED THROUGHOUT THE DAY, IF YOU LIKE, YOU GUYS HAVE BEEN PRETTY GOOD ABOUT THIS IN OTHER MEETINGS SO FAR.

SO I APPRECIATE THAT.

ONE OF THE THINGS THAT IS OCCURRING RIGHT NOW IS AN OVERWHELM OF DECISION FATIGUE.

SO DECISION FATIGUE IS ONE OF THOSE PHRASES THAT KIND OF GETS THROWN OUT THERE AND YOU SORT OF ROLL YOUR EYES LIKE ZOOM FATIGUE, PANDEMIC FATIGUE, RECONSIDERATION FATIGUE IS A NEW ONE, BUT IT'S I LOVE THE POLL GOING OR THE BET GOING ON IN THE CHAT.

THEY'RE NOT GOING TO LIE, BUT THAT'S WHERE MY MONEY WAS TOO.

THIS IDEA OF DECISION.

FATIGUE IS ACTUALLY BEING STUDIED BY PSYCHOLOGICAL RESEARCHERS BECAUSE IT'S HAVING SUCH A LARGER IMPACT THAN IT NORMALLY DOES NOW.

IT OCCURRED PRE-PANDEMIC, BUT WHAT'S HAPPENING IS IN A PANDEMIC SITUATION WHERE WE'VE BEEN NOW FOR ALMOST TWENTY FOUR FULL MONTHS, WE'RE COMING UP ON OUR TWO YEAR ANNIVERSARY WITH THIS THING, WHICH IS CRAZY TO THINK OF.

BUT WHAT'S HAPPENING IS WE'RE HAVING ADDITIONAL LAYERS OF CONSIDERATION UPON NORMAL DAY TO DAY DECISION MAKING, AND NOW WE'RE DOING THINGS THAT THEY'RE CALLING RECONSIDERATION FATIGUE, RIGHT? SO WE WERE PLANNING TO MEET IN PERSON, AND I WAS EXCITED, AT LEAST TO SEE THE TOP HALVES OF EVERYBODY'S FACES IN PERSON.

AND THEN WE SWITCH VIRTUAL AGAIN AND IT'S LIKE WOMP, WOMP LIKE THAT KIND OF DEBBIE DOWNER SORT OF FEELING.

AND WHILE WE CAN KIND OF SAY, YEP, WHAT WE'RE USED TO THIS NOW, WE ARE USED TO IT AND IT'S STILL CREATING A CONTEXT WHERE DECISION MAKING BECOMES MORE DIFFICULT.

SO THROUGHOUT THE DAY AS WE GO THROUGH, IF YOU START TO FEEL LIKE CONVERSATIONS AREN'T GOING WHERE THEY WANT, YOU'RE HAVING TROUBLE ARTICULATING A POINT, TAKE SOME BREAKS AND DO SOME OF THOSE THINGS WE'VE TALKED ABOUT THAT PANDICULATION, THAT NICE STRETCH AND CONTRACT GET THAT BLOOD FLOW GOING AGAIN.

WE DO A LOT OF STUFF WITH CAMERAS OFF AND YOUR GLUTEUS MAXIMUS, NOT JUST MINE, BUT EVERYBODY'S IS THE LARGEST MUSCLE IN YOUR BODY.

AND WHEN WE SIT FOR LONG PERIODS OF TIME.

BLOOD TENDS TO POOL THERE, OR WHEN YOU STAND, IT TENDS TO POOL DOWN TOWARDS YOUR FEET AND YOUR LOWER EXTREMITIES, SO DO FIVE OR 10 SQUATS.

WE DON'T NEED TO WATCH IT HAPPEN UNLESS YOU REALLY WANT TO SHOW THAT TO EVERYBODY.

BUT WHAT THAT WILL DO IS IT'S GOING TO ACTUALLY RECIRCULATE AND OXYGENATE YOUR BLOOD AND BE A LITTLE BIT MORE FOCUSED.

SO, YEAH, RICK, I DON'T HAVE THE SLIDES UP.

I SWITCHED COMPUTER SETUPS AND I'VE GOT A SYSTEM PREFERENCE I'M GOING TO FIX WHEN I GO

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IF THERE'S ONE THING I KNOW ABOUT THE FLAGSTAFF TEAM AND THE FLAGSTAFF COUNCIL IS THAT YOU ARE READY TO WORK AND YOU ARE READY TO GET TO IT.

SO I SAY, LET'S NOT DELAY IT ANY LONGER.

WE ARE TWO POINT FIVE MINUTES OFF THE AGENDA PACE RIGHT NOW, SO I DON'T WANT ANYBODY TO GET NERVOUS FOR MY TIME BOUND PEOPLE.

SO HEIDI, WHY DON'T WE GO AHEAD AND KICK IT OVER TO YOU WITH THE BUDGET TIMELINE? WE'LL START THERE, AND THEN WE'LL MOVE RIGHT INTO PRIORITY BASED BUDGETING WITH SHANE AND CHRIS. I LIKE MAKING THIS SOUND LIKE A LATE NIGHT SHOW WHERE WE'RE JUST SWITCHING EVERYBODY. ALL RIGHT. SO, HEIDI, YOU WANT TO JUMP ON IN? SURE. GOOD MORNING, MAYOR, VICE MAYOR AND COUNCIL, HEIDI DERRYBERRY, INTERIM FINANCE DIRECTOR, I WILL BE HAPPY TO GIVE BACK THAT TWO POINT FIVE MINUTES AS I TALK ABOUT THE TIMELINE, I JUST HAVE ONE QUICK SLIDE TO TALK TO YOU COUNCIL ABOUT JUST REMINDING THEM WHERE WE ARE AT IN THE TIMELINE.

SO CURRENTLY TODAY WE ARE IN THE SECOND COUNCIL BUDGET RETREAT FOR THIS FISCAL PROCESS OF BUDGET. WE WILL HAVE A LOT OF DIFFERENT TOPICS TO TALK ABOUT TODAY, LIKE YOU HAVE HEARD AND SAW ON OUR AGENDA.

THEN COMING OUT OF TODAY'S MEETING, WE DO MEET AGAIN IN ANOTHER COUNCIL RETREAT ON APRIL 21ST AND 22ND.

AT THIS POINT IS WHERE THE BUDGET TEAM AND CITY MANAGER WILL BRING FORWARD THE CITY MANAGER'S RECOMMENDED BUDGET FOR YOUR REVIEW.

THEN JUNE 7, WE WILL HAVE THE TENTATIVE BUDGET ADOPTION FOLLOWED ON JUNE 21, BY THE PROPERTY TAX LEVY HEARING, THE FIRST READING OF THE PROPERTY TAX ADOPTION AND THE FINAL BUDGET ADOPTION AND THEN THE FINAL MEETING THAT WE WILL HAVE IS ON JULY 5TH, WHERE WE WILL DO THE FINAL READING OF THE PROPERTY TAX ADOPTION.

SO JUST A QUICK BRIEF REMINDER OF WHERE WE'RE AT AND WHAT WE STILL HAVE TO COME.

IT IS NOW FEBRUARY, AND IT SEEMS LIKE JULY IS A LONG TIME AWAY, BUT WE WILL BE THERE BEFORE WE KNOW IT. SO THANK YOU.

IF THERE'S ANY QUESTIONS, PLEASE LET ME KNOW OTHERWISE, I BELIEVE I HAND THIS OVER TO THE PBB TEAM.

ALL RIGHT, SHANE AND CHRIS, YOU ARE UP ALSO KNOWN AS THE PBB TEAM, I WANT TO KNOW IF THAT'S WHAT YOU CALL YOURSELVES.

GOOD MORNING, MAYOR. MEMBERS OF COUNCIL CHRIS RODDY WITH THE PDB TEAM, I GUESS, IS WHAT WE'RE CALLING OURSELVES NOW, THE PBB ALL STARS, PERHAPS SOMETHING LIKE THAT, BUT WE HAVE BEEN OVER PBB AT OUR PREVIOUS COUNCIL RETREAT.

SO THIS IS GOING TO BE A PRETTY SHORT OVERVIEW OF THIS.

IT'LL JUST BE A FEW MINUTES HERE AND.

AM I CONTROLLING THIS SLIDE SHOW OR IS SOMEBODY ELSE CONTROLLING IT AT THIS POINT? I'M NOT SURE. SORRY, I MISSED THAT DETAIL.

THIS RICK TADDER I DO HAVE THE SLIDE SHOW.

OK. YES. ALL RIGHT.

CAN WE ADVANCE ONE SLIDE, PLEASE? THANK YOU, RICK. ALL RIGHT.

SO THIS IS THIS WILL JUST BE A VERY HIGH OVERVIEW OF WHERE WE'RE AT WITH PBB.

IT'LL JUST BE A FEW MINUTES.

I'LL START WITH A QUICK OVERVIEW OF THE PROCESS THAT WE'VE THAT WE DO AN ANNUAL BASIS.

THIS IS NOT THE FIRST TIME WE'VE DONE THIS.

THE FIRST STEP WE DO EVERY YEAR IS WE HAVE ALL OF OUR DEPARTMENTS GO OVER THEIR PROGRAM INVENTORY. SO A FEW YEARS BACK, THEY ENTERED ALL OF THEIR PROGRAMS INTO OUR PBB TOOL AND WE GO BACK AND CHECK THOSE EVERY YEAR TO MAKE SURE THAT THEY'RE STILL ACCURATE AND ACCURATELY DESCRIBE WHAT THE CITY IS DOING AND WHAT THEIR DEPARTMENTS ARE DOING.

SO THEIR INVENTORY OF PROGRAMS IS UPDATED EVERY YEAR THAT'S BROKEN INTO TWO SECTIONS.

THERE'S TWO TYPES OF PROGRAMS GOVERNANCE PROGRAMS AND COMMUNITY PROGRAMS. A GOVERNANCE PROGRAM WOULD BE ANYTHING THAT IS, IT SERVES THE CITY AS ITS PRIMARY BENEFICIARY, WHERE THE COMMUNITY PROGRAMS BENEFIT THE COMMUNITY AT LARGE.

SO THOSE WOULD BE ANY, ANY, ANY TYPE OF PROGRAM THAT THE COMMUNITY ENGAGES WITH, WHERE GOVERNMENT GOVERNANCE WOULD BE OUR INTERNAL PROGRAMS TO KEEP OURSELVES RUNNING.

AND WE WE EVALUATE THOSE A LITTLE BIT DIFFERENTLY, DEPENDING ON WHICH OF THOSE TYPES OF PROGRAMS IT IS. THE SECOND STAGE WE WENT THROUGH BACK IN THE FALL WAS COSTING.

THAT'S WHERE WE GO THROUGH AND MAKE SURE THAT ALLOCATIONS OF TIME AND FINANCES TO EACH OF THOSE PROGRAMS ARE STILL ACCURATELY DESCRIBED.

SO AS POSITIONS MOVE AROUND AND TAKE ON NEW RESPONSIBILITIES TO MAKE SURE THAT THOSE ARE UPDATED SO THAT YOU KNOW, A SINGLE PPE.

IT IS ALLOCATED TO THE RIGHT TO THE RIGHT PROGRAM OR IF FUNDS CHANGE AROUND, THOSE ARE

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FINALLY, WE GO THROUGH AND THIS ONE WAS A BIGGER LIFT WHEN THE SYSTEM WAS PUT IN PLACE.

BUT WE REVIEW SCORING FOR PROGRAMS TO MAKE SURE THAT THEY STILL ALIGN PROPERLY WITH THE PRIORITIES, OBJECTIVES THAT YOU ALL PASS.

I THINK IT WAS NOVEMBER OF 2019, OR 2021 OR 2020.

THE SEVEN PRIORITIES AND OBJECTIVES THAT ALL OF YOU YOU PASSED TO MAKE SURE THAT THOSE ARE STILL ACCURATELY SCORED FOR HOW WELL THEY ADHERE EACH OF THOSE THINGS.

AND IN THE LAST STEP WHICH WHICH WE'RE FINALIZING RIGHT NOW IS BUDGET REQUESTS.

SO ONCE ALL THE PROGRAMS ARE SET FORTH, MEMBERS OF STAFF CAN COME FORWARD AND PUT REQUESTS TO THE BUDGET TEAM OF MORE FUNDS OR MORE PERSONNEL OR WHATEVER THEY MAY NEED TO ENHANCE THEIR PROGRAMS. AND WE'RE GOING THROUGH THAT RIGHT NOW.

THAT CONCLUDES ON MONDAY.

CAN WE MOVE ON TO THE NEXT SLIDE? I WE'VE GOT A SUMMARY HERE OF, YEAH, THESE ARE THE SEVEN PRIORITIES THAT COUNCIL PASSED.

THAT ONE IN THE BLUE ON THE UPPER RIGHT IS THE GOVERNANCE PROGRAM, AND THEN THE OTHER SIX COMPRISE THE COMMUNITY PROGRAMS. SO THERE'S ENVIRONMENTAL STEWARDSHIP, LIVABLE COMMUNITIES, ROBUST RESILIENT ECONOMY, SUSTAINABLE INNOVATIVE INFRASTRUCTURE, INCLUSIVE AND ENGAGED COMMUNITY AND SAFE AND HEALTHY COMMUNITY. SO OUR PROGRAMS WON'T OFTEN ALIGN WITH ALL OF THOSE, BUT THEY MAY ALIGN MORE STRONGLY WITH ONE OR TWO OR THREE OF THEM.

AND THOSE ARE THAT'S THE WAY WE EVALUATE OUR PROGRAMS, JUST HOW WELL THEY ADHERE TO ONE OR MORE OF THESE PRIORITIES.

AND ON THE NEXT SLIDE, I'VE GOT THE TABLE THAT JUST SHOWS UNDERNEATH EACH OF THOSE WHAT SOME OF THOSE MAY MEAN. SO THERE'S A LOT OF INFORMATION ON THIS SLIDE GOING TO BUST THROUGH A LITTLE BIT QUICKLY HERE.

IT'S NOT EXPECTED TO READ EVERYTHING ON IT, BUT THIS IS A REFRESHER IF YOU WANT TO TAKE A MINUTE OR TWO HERE JUST TO LOOK AT WHAT SOME OF THE THINGS ARE UNDERNEATH THIS, IT KIND OF SHOWS YOU HOW WE BUILT UP EACH OF THOSE PRIORITIES WITH KIND OF SUB PRIORITIES AND OBJECTIVES BELOW THEM.

AND YOU KNOW, AGAIN, SOME PROGRAMS WILL HIT SOME OF THOSE BOXES, BUT NOT ALL OF THEM.

BUT BUT THEIR ADHERENCE TO A COLUMN IS KIND OF HOW WE EVALUATE THEM.

AND YEAH, IT LOOKS LIKE THESE WERE APPROVED DECEMBER 10 OF 2020.

SO DECEMBER 2020 WAS WHEN THESE WERE APPROVED BY COUNCIL.

UM, NOW THIS YEAR, WE WE HAVE A NEW TOOL THAT WE'RE USING FOR OUR BUDGET REQUESTS TO CALL OUR BUDGET OR TOOL PROVIDED BY RESOURCE X, OUR PBB PARTNER.

IT'S A NEW WEB BASED TOOL.

SO INSTEAD OF USING SPREADSHEETS AND, YOU KNOW, ROWS OF SPREADSHEETS JUST TO SUBMIT REQUESTS, IT'S ALL DONE THROUGH AN ONLINE TOOL.

IT ALSO ALLOWS REQUEST TO BE EITHER.

YOU CAN SAY HERE'S THE EXACT ACCOUNT I WOULD LIKE TO INCREASE FUNDS FOR, OR YOU CAN TIE HIM. YOU CAN GO THROUGH THE PROGRAM THAT THEY'RE TIED TO.

SO IF THERE'S A PROGRAM, FOR EXAMPLE, ONE OF OUR PROGRAMS IN THE CITY MANAGER'S OFFICE I'M RESPONSIBLE FOR IS THE OFFICE OF LABOR STANDARDS.

IF I KNOW THAT THERE'S FUNDS THAT PERTAIN JUST TO THAT PROGRAM, I CAN GO IN AND MAKE A REQUEST THROUGH THE PROGRAM AS OPPOSED TO JUST TO A LINE ITEM, WHICH ALLOWS AN ALTERNATIVE WAY FOR PEOPLE TO MAKE THE REQUESTS THAT MAY WORK BETTER FOR THEM AND MAY HIGHLIGHT OUR PROGRAMS A BIT BETTER.

AGAIN, ALL OF THE REQUESTS ARE STILL GROUNDED IN THOSE PARTIES AND OBJECTIVES, SO THEY'LL BE THEIR WAY DOWN HOW WELL THE REQUEST IS SUPPORTING THE PROGRAMS THAT SCORED BEST ACCORDING TO THOSE PARTIES OBJECTIVES.

AND WE WERE ALSO ABLE TO INCORPORATE THE CARBON NEUTRALITY PLAN THIS YEAR, WHICH IS A THING THAT WE'VE HEARD A LOT FROM, FROM Y'ALL THAT YOU WANT US TO FOCUS ON WHERE WE CAN.

SO WE'VE WE'VE ASKED FOR EVERY BUDGET REQUEST TO.

UH, JUSTIFY HOW IT HOW IT WORKS WITH THE CARBON NEUTRALITY PLAN, WHETHER IT'S IT FURTHERS IT IN CERTAIN WAYS AND AND TO CITE HOW IT WOULD DO THAT.

SO NEXT, I'VE GOT JUST A COUPLE SCREENSHOTS TO SHOW YOU HOW THE TOOL WORKS AND WHAT KIND OF INFORMATION WE GET FROM IT ON THE FIRST PAGE.

THERE'S NARRATIVE FOR A PERSON TO ENTER A DESCRIPTION AND THEN TO REQUEST YOUR PERSONAL NON-PERSONAL. AND EACH OF THOSE THREE LITTLE BOXES IN THE MIDDLE ARE A QUESTION THAT CAN BE ASKED. THEY THEY'RE SCREENSHOTS, SO WE CAN'T CLICK INTO THE SEE THE ANSWER'S YES OR NO, OR YOU CAN ARTICULATE WHETHER THIS WILL INCREASE SERVICE LEVEL, WHETHER IT WILL DECREASE SERVICE LEVEL OR JUST MAINTAIN IT, IF COSTS HAVE GONE UP, WHETHER IT'S FOR NEW FUNDING OR IF YOU WANT TO REALLOCATE FUNDING FROM SOMEWHERE ELSE.

AND THEN WHETHER YOU'RE REQUESTING THAT THESE FUNDS ONE TIME OR RECURRING, THOSE ARE PRETTY COMMON ITEMS. BUT THIS IS THE FIRST AREA WHERE A PERSON REQUESTING FUNDS BE ABLE TO DO THAT. THERE'S A LOT OF INSIGHTS PROVIDED WHEN YOU MAKE A REQUEST TO THIS TOOL, SO

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SO I'M SORRY IF YOU CAN'T SEE IT PARTICULARLY WELL.

THERE'S A GRAPH THERE, KIND OF IN THE MIDDLE AND THE LEFT HAND SIDE THAT SHOWS HOW YOUR REQUEST IS CHANGING A CERTAIN ACCOUNT OR A CERTAIN PROGRAM.

THEY USED THIS EXAMPLE REQUEST INCREASED NON PERSONNEL COSTS OR WOULD INCREASE NON PERSONNEL COSTS.

AND THEN ON THE RIGHT, IT SHOWS YOU INFORMATION ABOUT THE PROGRAM YOU'RE WORKING WITH.

SO THIS IS A QUARTILE THREE PROGRAM, MEANING THAT IT SCORED THE THIRD LOWEST QUARTILE FOR PROGRAMS ADHERING TO THOSE OBJECTIVES AND PRIORITIES.

AND THEN INFORMATION OF WHETHER IT'S MANDATED BY CITY ORDINANCE OR THE STATE.

AND IT HAS THE TIES TO HOW IT AFFECTS SOME OF THOSE PARTIES AND OBJECTIVES DOWN BELOW.

SO WHETHER IT'S NONE STRONG, SOME EXTREME, THAT KIND OF WORKS TO TO SHOW HOW WELL A REQUEST WILL ADVANCE THOSE OBJECTIVES AND PRIORITIES THAT NOW THAT WE'VE TRIED TO FOCUS ON, SO THIS IS REALLY KIND OF A GOOD PAGE FOR SOME OF THOSE INSIGHTS.

AND THEN ON THE LAST PAGE IS THE SERIES OF QUESTIONS THAT ANYONE HAS TO ANSWER WITH THEIR REQUEST THAT PERTAINS TO THINGS LIKE THE CARBON NEUTRALITY PLAN, WHICH ARE THOSE THREE QUESTIONS KIND OF IN THE MIDDLE.

WE HAVE OTHER BUDGETING QUESTIONS ABOUT WHETHER FUNDS CAN BE REALLOCATED OR IF THEY HAVE TO BE NEW FUNDS.

MAKE SURE THAT THE PROPER CHANNELS HAVE BEEN GONE THROUGH AND EVERYONE'S IN THE LOOP THAT NEEDS TO BE. AND THEN THERE'S AN OPPORTUNITY TO EXPLAIN WHAT WILL HAPPEN IF THE REQUEST IS DENIED. YOU KNOW WHAT DETRIMENT WILL COME TO THE CITY IF THE REQUEST IS NOT FULFILLED AND THEN IF IT'S A REQUEST FOR A QUARTILE FOR PROGRAM.

SO ONE OF THOSE ONES THAT SCORED KIND OF LOWER, WE WANTED TO LOOK AT THOSE A BIT CLOSER.

SO GIVE A BIT MORE JUSTIFICATION FOR WHY A PROGRAM THAT SCORED LOWER NEEDS MORE FUNDS AND THEN ALWAYS LOOKING FOR OTHER PLACES THAT WE CAN GET FUNDS.

SO IF THERE'S PROGRAM REVENUE OR OUTSIDE FUNDING AVAILABLE, THAT SHOULD BE IDENTIFIED HERE AS WELL. SO THIS IS KIND OF THE STEP A PERSON WOULD GO THROUGH IF THEY'RE AS THEY'RE SUBMITTING THEIR BUDGET REQUEST.

AND IT SHOWS YOU WHAT KIND OF INFORMATION IS PROVIDED TO THE BUDGET TEAM SO THEY CAN MAKE THEIR EVALUATIONS AS TO WHICH OF THOSE REQUESTS SHOULD BE FUNDED, WHICH ONES WILL NOT BE.

AND THAT'S ALL I HAD ON A NEW BUDGETER TOOL.

THE NEXT ONE WOULD BE THE REVENUE UPDATE, I BELIEVE.

BUT IF THERE'S ANY QUESTIONS FOR ME BEFORE I HOP OFF, HOPEFULLY MY TIME COULD PERHAPS BE USED TO FOR SOMEONE ELSE THAT MAY BE NEEDING THAT IN THE FUTURE.

BUT COUNCIL MEMBER, ANY QUESTIONS? GOING ONCE, GOING TWICE.

ALL RIGHT. CHRIS, WAY TO GIVE US BACK FIVE MINUTES.

ALL RIGHT, YEAH, HAPPY TO DO SO.

I'M SURE WE'LL HAVE NO PROBLEM USING THAT UP, THOUGH I'M PRETTY SURE RICK CAN HELP WITH THAT. ABSOLUTELY.

BEFORE WE LET CHRIS EXIT, I WOULD LIKE TO NOTE FOR EVERYBODY'S INTEREST THAT CHRIS RAN THE IMAGING THIS YEAR AND HAS DONE SO FOR SOME TIME, MANY YEARS, CORRECT, CHRIS. YEAH, I'VE DONE IT FIVE TIMES, HOPEFULLY SIX LATER THIS THIS FALL, WE'LL SEE.

YEAH, THE IMAGING, MOST OF YOU KNOW THIS, BUT IT'S A RATHER RIGOROUS RUN THAT GOES OVER A MOUNTAIN PASS INTO THE TELLURIDE COMMUNITY AND NO EASY THING.

I THINK JUST SURVIVING THAT RUN, FRANKLY, IS AN INCREDIBLE FEAT.

SO JUST WANTED TO PUT YOU ON THE SPOT THERE, CHRIS, AND THANKS, GREG.

THAT'S GOOD PREPARATION FOR BUDGET WORK.

CHRIS, I THINK. ALL RIGHT.

RICK, OVER TO YOU.

OH, NICOLE, I HAVE A COUNCIL MEMBER SHIMONI.

YOU KNOW, YOU PAUSE LONG ENOUGH.

CITY MANAGER, I'M GOING TO THINK OF SOMETHING TO ADD, I ACTUALLY DID HAVE A COUPLE OF NOTES. I WANTED TO JUST SAY, CHRIS, THANK YOU.

REALLY QUICK QUESTION.

I WAS GLAD TO HEAR ABOUT THE CLIMATE LENS.

I'M WONDERING HOW OUR OTHER EMERGENCIES DECLARATIONS MIGHT BE ABLE TO ACT AS FILTERS MOVING FORWARD AND THINKING ABOUT CLIMATE.

AND I'M THINKING ABOUT HOUSING, AND I'M ALSO THINKING ABOUT EQUITY.

SO I'M WILLING TO PLANT THAT SEED IF YOU HAVE A QUICK RESPONSE.

SURE, BUT YEAH, YEAH, CERTAINLY.

THANK YOU, MAYOR COUNCIL MEMBER SHIMONI.

SO SOME OF THOSE OTHER EMERGENCIES.

WE CAN CERTAINLY USE THOSE ON A MORE SUBJECTIVE BASIS AS THE BUDGET TEAM IS GOING THROUGH TO EVALUATE REQUESTS.

THEY ALSO WOULD BE COVERED UNDER THOSE PRIORITIES AND OBJECTIVES.

THERE'S ONE FOR ENVIRONMENTAL STEWARDSHIP, AND THERE THERE IS ONE AS WELL FOR LIVABLE COMMUNITIES, WHICH WOULD INVOLVE WHICH INCLUDE HOUSING.

SO THOSE ARE AREAS UNDER WHICH THE BUDGET TEAM CAN CERTAINLY ASK A FOLLOW UP QUESTIONS

[00:25:02]

THANK YOU. ALL RIGHT, THANK YOU.

THANK YOU, MAYOR, FOR YOUR COMMENT IN THE CHAT AS WELL.

ALL RIGHT, RICK. LOOKS LIKE SHANE HAD A COMMENT.

SO, SHANE, GO FOR IT.

HEY, THANKS. JUST REAL QUICK, JUST TO ADD TO THE RESPONSE THAT CHRIS PROVIDED.

AND CHRIS, THANKS A LOT FOR YOUR PRESENTATION.

OF COURSE, THIS TOOL, MAYOR AND MEMBERS OF THE COUNCIL IS REALLY ADAPTABLE TO OUR NEEDS.

I MEAN, THIS IS WHAT WE'VE DONE THUS FAR THAT WILL LEAD US THROUGH THIS BUDGET PROCESS.

BUT IN FUTURE BUDGET CYCLES, WE CAN WE CAN ADD TO OR TAKE AWAY FROM, YOU KNOW, THIS LIST OF QUESTIONS THE THE CARBON NEUTRALITY SIDE OF THINGS WE WE LARGELY VIEW AS STAFF AS BEING A LENS THAT REALLY ALL OF OUR BUDGET REQUESTS CAN BE FILTERED THROUGH.

I THINK THAT'S UNIQUE TO SOME OF THE OTHER ISSUES THAT YOU BROUGHT UP.

EQUITY AND AND HOUSING ARE A LITTLE MORE SPECIFIC AND IN THEIR APPLICATION, BUT FROM THE SUSTAINABILITY SIDE OF IT, WE FOUND THAT THAT LENS IS SOMETHING THAT REALLY CAN APPLY TO EVERY SINGLE THING THAT WE'RE WE'RE REALLY LOOKING AT.

SO THAT'S WHY IT FOUND ITS WAY INTO THIS, INTO THIS LIST OF OF QUESTIONS THAT ARE OUR PROGRAMS AND DEPARTMENTS.

AND, YOU KNOW, WOULD WOULD HAVE TO ANSWER AS THEY AS THEY PROVIDE A BUDGET REQUEST TO THE BUDGET TEAM THIS CYCLE.

BUT AGAIN, THE POINT IS THAT THIS IS THIS IS REALLY ADAPTABLE TO OUR NEEDS AS WE GO FORWARD. THANK YOU.

ALL RIGHT. SEEING, NO OTHERS.

RICK, TAKE US AWAY.

ALL RIGHT. AND ALSO JUST I'LL JUST ADD ONE MORE CLARITY AS FAR AS OUR PRIORITY BASED BUDGETING PROGRAM RIGHT NOW IS TO FOCUS ON OPERATIONS AND THE THE BASE BUDGET AND OUR ANNUAL OPERATION COSTS, CAPITAL IMPROVEMENTS.

AND THOSE PROGRAMS ARE CURRENTLY NOT SOMETHING WE'VE DEVELOPED AND FIGURE OUT HOW TO WORK INTO THE PBB PROGRAM, BUT A FUTURE MAY PROVIDE US THAT TYPE OF LENS ON CAPITAL PROJECTS.

AND SO WITH THAT, WE'LL GO ON TO REVENUE UPDATES.

YES, I WAS GOING TO TAKE AS MANY MINUTES AS I CAN AND MAYBE EVEN TAKE THE WHOLE BREAK FROM YOU. JUST KIDDING.

HOPEFULLY I CAN GET THROUGH THIS PRETTY FAST, BUT.

GOOD MORNING, MAYOR. VICE MAYOR, CITY COUNCIL, I'M RICK TADDER YOUR MANAGEMENT SERVICE DIRECTOR AND CITY TREASURER AS WE GO THROUGH REVENUE UPDATES.

THERE'S STILL A LOT OF UNCERTAINTY THAT GIVES ME PAUSE WHEN I'M DOING THESE REVENUE ESTIMATES AND TALKING ABOUT GROWTH IN OUR COMMUNITY.

THINGS LIKE INFLATION, SUPPLY CHAIN, WORKFORCE INTEREST RATES, THERE'S MANY THINGS THAT ADD CAUTION STILL IN OUR ENVIRONMENT.

WE ARE CURRENTLY HAVE.

SO WHEN WE WHEN I'M BUILDING ESTIMATES AND DOING PROJECTIONS, I WANT TO MAKE SURE THESE ARE ACHIEVABLE BASED ON KNOWN THINGS THAT WE HAVE TODAY AND EXPECTATION FOR THE LONG AND SHORT TERM. WHEN WE DO REVENUE ESTIMATES AND PROJECTIONS, WE ALSO CONTINUE TO CONSIDER RECESSION PLANNING.

UNDERSTANDING THAT RECESSIONS ARE A CYCLICAL THING THAT HAPPENED FIVE TO SEVEN YEARS.

SO WE BUILD OUR ESTIMATES TO BUILD IN THAT CAPACITY.

AND, YOU KNOW, JUST AS WE WERE TALKING LAST APRIL, THERE WAS STILL A LOT OF UNCERTAINTY AND OUR REVENUE PROJECTIONS AND ESTIMATES WERE CONSERVATIVE BUT DEFINITELY ACHIEVABLE.

AND YOU'LL SEE HOW THOSE NUMBERS COMPARE TO WHERE WE ARE THIS THIS COMING YEAR AND IN THE OUT YEARS. UM.

SO THE FOLLOWING SLIDES, YOU'LL DEFINITELY SEE SOME POSITIVE MOVEMENT IN OUR REVENUES.

AND I AM GOING TO.

TURN OFF MY CAMERA FOR NOW AS I'M RUNNING SLIDES AND NOTES AND ALL THAT STUFF, SO.

SO HERE WE HAVE OUR FIRST MAJOR REVENUE SOURCE IS OUR GENERAL SALES TAX.

THIS IS THE ONE PERCENT SALES TAX FOR THE CITY OF FLAGSTAFF.

YOU'LL SEE SIMILAR GRAPHS WHERE WE HAVE THE REVENUES NOTED ON THE LEFT HAND SIDE.

DOWN BELOW, WE HAVE ABOUT 10 YEARS OF ACTUAL INVESTMENTS, AS WELL AS THE FIVE YEAR BUDGETS THAT WE ARE PUTTING TOGETHER WHEN OUR FIVE YEAR PLANS.

THE BLUE LINES ARE ACTUAL POSTED REVENUES THAT WE'VE HAD OVER THE LAST SEVERAL YEARS, AND THEN WE START THE THE ORANGE LINE IS THE BUDGET THAT COUNCIL APPROVED DURING THE LAST

[00:30:07]

THIS REPRESENTS THAT ORANGE LINE AND THEN YOU'LL SEE THE GREEN LINE IS WHERE OUR PROJECTIONS STAND TODAY BASED ON THE ESTIMATE AND PROJECTIONS WE PUT TOGETHER LAST MONTH.

WHEN YOU SEE THE GREEN LINE ABOVE THE ORANGE LINE, THAT'S ALWAYS A POSITIVE THING THAT WE'RE EXCEEDING WHAT WE HAD IN BUDGET IN THE PRIOR YEAR AND VICE VERSA.

IF THE ORANGE IS ABOVE THE GREEN, THAT IS, REVENUES MAY HAVE SLOWED DOWN OR WE FOUND SOME OTHER THINGS THAT HAVE MAY HAVE CHANGED OUR PROJECTIONS.

SO HERE'S OUR.

GENERAL FUND SALES TAX HERE, WE ARE ANTICIPATING SOME PRETTY GOOD GROWTH WHEN WE ENDED LAST FISCAL YEAR, WE ACTUALLY ENDED VERY STRONG THAT LAST QUARTER COMPARED TO WHAT WE WERE PROJECTING IN FY2021.

WE HAD A GROWTH OF WAS THAT TWO MILLION OR SO IN THAT YEAR AND THAT YEAR AN ESTIMATE. AND THAT WAS A POSITIVE LIGHT THAT IS LOOKS LIKE IT WILL CONTINUE THROUGH THE OUT YEARS.

WE CONTINUE TO SEE SOME STRONG REVENUE NUMBERS THIS YEAR THAT WILL MAINTAIN THAT LEVEL OVER WHAT OUR PREVIOUS PROJECTIONS WERE.

SOME OF THE THINGS THAT WE'LL TALK ABOUT ARE INDIVIDUAL CATEGORIES AND AND THEIR IMPACTS ON THE NEXT SLIDE.

BUT YOU COULD SEE WE HAVE A PRETTY STRONG GROWTH BETWEEN TWO AND THREE PERCENT BUILT IN THROUGH THE OUT YEARS OF OUR GENERAL SALES TAX.

AND THEN OUT HERE IS IS ABOUT THAT FIVE TO SEVEN YEAR PERIOD THAT IS POTENTIAL FOR A RECESSION. NOT SAYING THAT, I CAN PREDICT THAT, BUT WE'RE JUST PLANNING THE REVENUE STREAMS MAY BE LOWER OUT IN FISCAL YEAR 2027. WHEN WE LOOK AT THE REVENUES FROM A CATEGORY BASIS HERE, YOU CAN SEE WHERE WE ENDED UP FOR FISCAL YEAR 202.

BY ALL THE SALES TAX CATEGORIES THAT WE HAVE FOR OUR GENERAL SALES TAX.

AND HERE WE'RE COMPARING HOW GROWTH IS CONTINUING IN THE CURRENT FISCAL YEAR IN THE CURRENT PROJECTIONS THAT WE'RE PROVIDING.

WHAT I'D LIKE TO POINT OUT HERE, THERE ARE SEVERAL CATEGORIES THAT ARE SEEING GROWTH IN OUR REVENUES.

THE HIGHEST ONES REPRESENTED IS OUR RETAIL SALES TAX CONTINUES TO BE STRONG.

MULTIPLE YEARS, THIS ONE HAS BEEN VERY STRONG.

A RESTAURANTS AND BARS HAVE BEEN STRONG, ABOUT ALMOST $300 MILLION STRONGER THAN THE YEAR PRIOR. OUR HOTELS, MOTELS, SHORT TERM RENTALS, CAMPING AND SO FORTH HAVE ALSO SEEN GREAT GROWTH YEAR OVER YEAR, AND WE EXPECT TO SEE THAT CONTINUE.

AND THEN. I THINK THOSE WERE THE MAJOR ONES THAT WE WERE.

OH, MARKETPLACE, WE'RE CONTINUING TO SEE THAT THE MARKETPLACE DEFINITELY OUTPACES WHAT OUR PROJECTIONS WERE WHEN WE WERE ALLOWED TO START CHARGING SALES TAX ON SALES OUTSIDE OF ARIZONA. SO THAT'S BEEN A GREAT ADD TO OUR REVENUE RESOURCES.

TO NOTE. GROWTH IS ALSO IN OUR RETAIL CATEGORY FOR ANOTHER REASON, WHICH IS THE MARIJUANA RECREATIONAL SALES TAX.

JUST TO GIVE COUNCIL AN IDEA OF THAT IMPACT THIS YEAR IS DURING THE FIRST SIX MONTHS OF THIS YEAR, WE'VE COLLECTED ABOUT ONE HUNDRED AND SEVEN THOUSAND DOLLARS IN SALES TAX ON RECREATIONAL MARIJUANA.

THAT'S A RETAIL SALE.

AND THAT IS A BIT OF THIS GROWTH THAT WE SHOW UNDER RETAIL.

ARE RESTAURANT SALES ARE CURRENTLY UP 13 PERCENT OVER THE PRE-PANDEMIC NUMBERS THAT WE HAD IN 20 FISCAL YEAR 20 19, SO ACHIEVING ABOVE AND BEYOND 2019 NUMBERS, AS WELL AS THE HOTELS, MOTELS, SHORT TERM RENTALS, THOSE ARE CURRENTLY ABOUT 18 PERCENT OVER FISCAL YEAR 2019, WHICH WAS PRE-PANDEMIC.

GREAT KUDOS TO, OF COURSE, OUR DISCOVER FLAGSTAFF TEAM AND THESE TWO CATEGORIES.

WE'LL SEE HOW THAT REFLECTS IN OUR BBB TAXES IN A COUPLE OF SLIDES.

BUT INVESTMENT IN TOURISM DURING A DOWNTURN IS DEFINITELY VALUABLE TO MAINTAIN SEVERAL REVENUE STREAMS FOR OUR CITY OF FLAGSTAFF.

HEY, RICK. YES, GREG'S GOT A COMMENT.

ALL RIGHT. LET ME JUST MENTION ONE MORE AND THEN WE'LL BE DONE WITH SALES TAX.

THE OTHER ONE I WANT TO POINT OUT IS THIS AMUSEMENT TAX.

YOU CAN SEE THAT HAS BEEN THE BIGGEST GROWTH.

HOWEVER, THEY'VE BEEN ONE OF THE HARDEST HIT INDUSTRIES, OBVIOUSLY FOR LIVE AMUSEMENTS

[00:35:06]

SO THESE ONES, THESE HAVE NOT REBOUNDED.

THEY WERE AT ABOUT ONE HUNDRED AND THOUSAND BEFORE THE PANDEMIC.

SO THOSE ARE THE GENERAL FUND SALES TAX.

GO AHEAD, GREG. HEY, THANKS, RICK.

THIS IS ACTUALLY A CONVENIENT TIME TO ASK OF THIS BEFORE YOU GO ON TO YOU BACK UP TO THAT GRAPHIC YOU SHOWED ON THE GENERAL SALES TAX, JUST BECAUSE IT'S AN OPPORTUNITY NOW TO LOOK WITH, WITH SOME THE BENEFIT OF HINDSIGHT AS TO WHAT HAPPENED IN TWENTY EIGHTEEN 19 WITH THE RECESSION. I REMEMBER A COUPLE OF YEARS AGO HAVING A LOT OF DISCUSSION AROUND THIS TIME AS TO A LITTLE BIT LATER IN THE SPRING AS TO WHAT KIND OF RECESSION WE MAY BE LOOKING AT KNOW. WAS IT GOING TO BE VERY PROTRACTED OR IS IT GOING TO BE A SHARP THE SHARP DECLINE FOLLOWED BY AN ABRUPT RETURN? AND I'D LOVE TO GET YOUR COMMENTS.

NOW THAT WE'RE LOOKING AT ACTUAL NUMBERS, IT LOOKS LIKE, YOU KNOW, WE SPANNED A COUPLE OF QUARTERS IN THAT RECESSION, BUT IT ALSO LOOKS LIKE IT WAS A PRETTY SHALLOW RECESSION, ALL THINGS CONSIDERED. YEAH.

SO THE RECESSION ACTUALLY OCCURRED IN FISCAL YEAR 20, WHICH IS THE TWENTY TWO POINT TWO MILLION. WE SAW REVENUES DECLINING THE YEAR BEFORE AND HAD SOME CAUTION LEADING INTO THAT YEAR. THE FIRST THREE QUARTERS OF THAT FISCAL YEAR WERE VERY STRONG, AND WHILE WE LOST A.

A LOT OF REVENUES IN THAT LAST QUARTER.

YOU CAN STILL SEE WE WERE ABOVE PRIOR YEAR NUMBERS LEADING OUT OF THAT.

WE NEVER EXPECTED REVENUES TO REBOUND SO QUICKLY AND BE STRONGER.

BUT I THINK A LOT OF THAT IS DUE TO FACTORS SUCH AS FEDERAL POLICIES AND THE WAY THEY'VE ADDRESSED THIS RECESSION VERSUS PRIOR RECESSIONS.

THEY REALLY PUT AN INFLUX OF CASH FLOW INTO THE COMMUNITIES, STATES AND SO FORTH THAT I THINK REALLY MITIGATED THAT IMPACT THAT THIS RECESSION COULD HAVE HAD.

IT COULD HAVE HAD A LONGER RETRACTED RECESSION.

AND WE'LL SEE WHAT FUTURE RECESSIONS BRING US.

THANKS, RICK. SO DID WE HAVE TWO QUARTERS OF RECESSION FROM FROM THE NUMBERS YOU'VE SEEN THE ACTUAL RECESSION PERIOD? YES, AS DETERMINED BY THE FEDERAL GOVERNMENT WAS REALLY ONLY FOR TWO MONTHS IN FISCAL YEAR 2020.

SO THAT WOULD HAVE BEEN, I THINK IT WAS APRIL.

APRIL, MAY OR MAY, JUNE.

WAS THAT DETERMINED RECESSION, PERIOD? GREAT, THANK YOU FOR THAT.

ROSEMARY, SO YOUR HAND IS RAISED.

YEAH, I JUST WANTED A LITTLE REFRESHER ON WHAT THE MISCELLANEOUS TAX IN THE GENERAL FUND ENCOMPASSES. THIS ONE IS SEVERAL TAX CORKERY.

IT'S JUST THEY'RE SO SMALL, I JUST COMBINE THEM TOGETHER.

IT INCLUDES ADVERTISING, TIMBER SALES, TRANSPORTATION AND PUBLISHING, IF I DIDN'T SAY THAT ONE ALREADY.

OH, YEAH.

VERY MINIMAL TAX ON THOSE CATEGORIES.

LOOK. YEAH.

ALL RIGHT. STATE SHARED SALES TAXES.

HERE YOU CAN SEE THOSE HAVE BEEN DOING VERY WELL SINCE 2020, WHEN WE HAD THAT RECESSIONARY PERIOD AGAIN.

GROWTH WAS WAS TRENDING VERY WELL AND NOW IT IS REALLY EXCEEDING WHAT PREVIOUS TREND LINES HAVE HAD.

THEY'VE EXCEEDED OUR YEAR END ESTIMATES BY ABOUT 700000, PROVIDING US FUNDING FOR THIS COMING BUDGET. AND WE DO REALLY EXPECT THOSE TO BE STRONG MOVING FORWARD.

WE'VE HEARD FROM THE JOINT LEGISLATIVE BUDGET COMMITTEE JLBC AND THE FINANCE ADVISORY COMMITTEE LOOKING AT THEIR PROJECTIONS GOING OUT AND THEY ARE LOOKING AT STRONG GROWTH FOUR TO FOUR POINT SEVEN PERCENT.

HOWEVER, WE PROJECT OUR GROWTH MORE IN A THREE PERCENT.

I THINK THAT'S MORE ACHIEVABLE NUMBER GOING FORWARD.

ONE THING TO ADD IS, YOU KNOW, I THINK PART OF THE CONTRIBUTING FACTOR TO THIS BIG GROWTH

[00:40:05]

THE MARKETPLACE REVENUES OUTSIDE OF ARIZONA, SALES STARTING COLLECTING THAT TAX, AS WELL AS THE RECREATIONAL MARIJUANA REVENUES, THE SALES TAX PORTION ARE ALSO INCLUDED IN THESE FIGURES. SO I THINK THOSE GAVE US A GOOD GAIN AND HELP US CONTINUE THESE STRONGER REVENUES. ONE MORE THING THAT IMPACTED THESE REVENUE PROJECTIONS GOING FORWARD IS THAT THE CENSUS NUMBERS WERE BROUGHT OUT LAST SUMMER-FALL AND AS A PERCENTAGE OF THE CITY'S POPULATIONS THAT THE FLAGSTAFF SHARES WITH OTHER CITIES AND SHARING THESE REVENUES OUR PERCENTAGE RATE ACTUALLY WENT UP ONE POINT TWO NINE SIX TO ONE POINT THREE OR ONE PERCENT, RESULTING IN A HIGHER SHARE OF THE SALES TAX ABOUT A THREE HUNDRED AND TWENTY FIVE THOUSAND INCREASE PER YEAR.

AND THAT ESTIMATE? SO THAT WAS A GREAT GAME FOR THE CITY.

FLAGSTAFF. OF COURSE, MODELING A THREE PERCENT, WE STILL THROW OUT THAT CONSIDERATION OF A RECESSION A PERIOD IN EIGHT YEARS.

STATE SHARED INCOME TAXES.

HMM. I REALLY DON'T KNOW WHAT TO TELL YOU ON THIS ONE.

THIS IS THIS WILL BE AN INTERESTING YEAR TO SEE WHERE THESE ACTUALLY OCCUR.

THERE ARE SO MANY PATHS THAT THIS REVENUE STREAM COULD BE IMPACTED DUE TO LEGISLATIVE DECISIONS. WE ALL KNOW THAT THE STATE MADE SOME DECISIONS LATE IN THE GAME TO CUT INCOME TAXES. AND EVERY TIME THEY MESS WITH THE INCOME TAX OF THE OF THE STATE, CORPORATE AND INDIVIDUAL, THAT IMPACTS OUR REVENUES.

SO THERE WAS A LOT OF MOVEMENT ON THAT AT THE END OF THE YEAR.

I'M NOT GOING TO GO ALL TO THE DETAIL SINCE THEN, BUT AS PART OF THE CUT, THEY LOOK TO INCREASE THE CITY'S SHARE TO 18 PERCENT TO HELP LEVEL IT OFF.

BUT THEN THIS HAS BEEN CHALLENGED IN A SENSE, PETITION WAS COMPLETED AND IT IS SCHEDULED TO GO ON TO NOVEMBER 22 TO ELECTION AS A REFERENDUM ABOUT THE TAX CUT.

HOW EVER? BUT THAT MAY BE ONE ROAD, BUT THE OTHER ROAD IS NOW IN LEGISLATIVE SESSION, WE'VE SEEN SEVERAL INCOME TAX BILLS DROPPED.

SARAH, SARAH LANGLEY AND TODD ARE DEFINITELY WATCHING THOSE AND THOSE SEEM TO BE A REPEAL AND REPLACE TYPE PROCESS THAT OUR LEGISLATURE MAY GO THROUGH, THUS NULLIFYING THAT ELECTION, POSSIBLY IN NOVEMBER.

SO THAT'S ONE WE'LL DEFINITELY WATCHING OVER THE COMING MONTHS OF WHICH BILLS MOVE FORWARD AND HOW THOSE IMPACT THE CITY OF FLAGSTAFF.

BUT AT THIS TIME, ONE THING I CAN REPORT OUT IS THAT CENSUS ALSO IMPACTS OUR STATE SHARED INCOME TAX.

SO HERE WE DO SEE SOME GROWTH RELATED TO THIS.

WE DO SEE APPROXIMATELY TWO HUNDRED EIGHTY FIVE THOUSAND ADDITIONAL REVENUES BECAUSE OF OUR SHEER INCREASE IN THE COMING YEARS AND GOING FORWARD.

I REACHED OUT TO THE STATE TO FIND OUT WHAT WHAT THE ACTUAL COLLECTIONS WERE FOR FY TWENTY ONE, BUT I HAVEN'T GOTTEN THAT NUMBER.

SO JUST TO REMIND COUNCIL, THE STATE COLLECTS ALL THE INCOME TAX FOR INDIVIDUALS AND CORPORATES IN ONE FISCAL YEAR, SO SAY THEY COLLECTED THE TAXES IN FISCAL YEAR TWENTY ONE.

THEN THEY DISTRIBUTE THOSE TAXES TWO YEARS LATER.

SO FISCAL YEAR TWENTY THREE IS WHEN WE'LL SEE THOSE REVENUES FROM THE FY 21 COLLECTION.

ON THIS CHART, YOU CAN SEE THIS VERY ERRATIC MOVEMENT OF OUR OUR SALES TAX INCOME.

THE REASON BEING IS THAT DURING THE THE PANDEMIC AND THE RECESSION, THERE WAS DECISIONS MADE TO DELAY THE FILING OF INCOME TAX RETURNS.

AS SO, SINCE THE DELAY OF INCOME TAX RETURNS FOR FY 20, WHICH AFFECT 20 TO REVENUES.

YOU SEE THAT DECLINE BECAUSE THOSE WERE FILED THE NEXT FISCAL YEAR, SO YOU'LL SEE A STEEP INCREASE BECAUSE WE HAVE THOSE RETURNS PLUS THE CURRENT YEARS, THEN WE EXPECT SOME NORMALIZING OUT OF THOSE RETURNS GOING FORWARD.

SO THAT'S THE REASON BEHIND THAT TYPE OF MOVEMENT.

[00:45:04]

THEY DID VERY WELL LAST YEAR, SAW SOME GOOD GROWTH OVER TIME.

BUT I AM SEEING THAT THESE ARE ACTUALLY DECLINING AND SLOWING DOWN IN THE CURRENT YEAR.

THEY'RE ACTUALLY FOUR PERCENT BELOW PRIOR YEAR.

BUT I THINK THEY'RE STILL BETTER THAN WHAT WE HAD IN OUR REVENUE MODELS THAT YEAR PRIOR.

BUT BUT DOING PRETTY WELL AND ABOVE OUR PRIOR PROJECTIONS, OF COURSE, WE'LL BE LOOKING AT THAT RECESSIONARY PERIOD.

THESE COME THESE REVENUES COME FROM A SHARE OF THE AUTO REGISTRATION FEES THAT THE STATE COLLECTS AND DISTRIBUTES TO CITIES.

RICK MAYOR DEASY QUESTION.

GO. YES. YEAH, THANKS, RICK.

I'M JUST WONDERING IF, YOU KNOW, TALKING WITH THE AUTO DEALERSHIPS, THEY ARE REALLY STRUGGLING TO GET VEHICLES DESPITE A VERY HIGH DEMAND FOR THEM.

SO DO YOU SEE THIS DROP REALLY FROM SUPPLY CHAIN AS OPPOSED TO DEMAND? AND COULD WE POTENTIALLY BE SEEING A REBOUNDING PRETTY QUICK ONCE YOU KNOW OUR SUPPLY CHAIN ISSUES START TO WORK THEMSELVES OUT AGAIN? THAT'S THAT'S A THAT'S A GOOD QUESTION, I HAVEN'T REALLY DONE THE ANALYSIS OF WHAT CAUSED IS CAUSING THE DECLINE THIS YEAR.

THAT IS DEFINITELY A GOOD REASON IT COULD BE THE SUPPLY CHAIN OR IT COULD HAVE BEEN THAT PEOPLE HAD THE REVENUES AND RESOURCES DURING THIS PANDEMIC.

SOME PEOPLE GOT INFLOWS OF FUNDS THAT MAY HAVE HELPED THEM.

MARKETS HAVE BEEN GOOD.

THAT COULD HAVE BEEN REASONS PEOPLE INVESTED IN VEHICLES AND HIGHER REGISTRATION.

THERE'S MANY FACTORS THAT COULD CONTRIBUTE TO THAT, BUT THAT'S A GOOD ONE TO MAYBE SPEND SOME TIME ON. WELL, THANK YOU.

YEAH. YOU MEAN YOU HAVEN'T HAD ENOUGH WORK, YOU HAVE TO DO A SUPPLY AND DEMAND MODELING FOR THIS. JESUS, RICK, THERE'S A LOT OF DETAILS, YOU KNOW, AT THE TIME.

YEAH. THANK YOU.

YOU'RE YOU'RE WELCOME.

I HEAR WE'RE LOOKING AT BUILDING PERMITS.

WE'VE SEEN BACK TO BACK GREAT YEARS OF BUILDING.

IT PERMITS DEFINITELY A HIGH WORKLOAD FOR OUR COMMUNITY DEVELOPMENT TEAM AND WE DEFINITELY SEE THE CONSTRUCTION IN OUR COMMUNITY EVEN THROUGH THE PANDEMIC.

THIS IS A GOOD SPOT TO INVEST FUNDS AND AND KEEP GROWTH GOING WITH CAPITAL PROJECTS AND GROWTH. SO YEAH, WE'RE WE DID BACK TO BACK THREE MILLION PLUS THE CURRENT YEAR IS LOOKING BETTER THAN WHAT WE'VE PROJECTED.

AND IT COULD ACTUALLY EXCEED THAT TWO POINT TWO MILLION THAT I'M CURRENTLY HAVING IN THE MODEL. BUT USUALLY WHAT WE SEE IS THIS THESE LAST SIX MONTHS IS WHAT REALLY MAKES UP THE GROWTH YEAR OVER YEAR.

SO WE'LL SEE IN THE COMING MONTHS, WE'LL BE WATCHING THESE REVENUES BECAUSE THAT'S WHERE WE GET THE MAJORITY OF THOSE REVENUES.

AS SUMMER STARTS TO GEAR UP, PEOPLE START TO THINK ABOUT CONSTRUCTION AND BUILDING.

THAT'S WHERE WE SEE PERMIT REVENUE GROWTH.

ONE THING I JUST WANT TO TALK ABOUT IS WE LOOK AT THIS ONE AS A BASELINE OF ABOUT $2 MILLION ANNUALLY. AND THE REASON FOR THAT IS WE DON'T WANT TO OVER OBLIGATE ONGOING REVENUES THAT COULD MAY NOT BE ACHIEVABLE IN THE FUTURE.

BUILDING PERMITS HAS BEEN ONE OF THOSE THAT YOU DO SEE SOME SOME MOVEMENT UP AND DOWN YEAR OVER YEAR.

AND WHEN WE'RE IN A RECESSION LAST IN 2008 OR SO, THESE REVENUES WENT FROM A TWO POINT EIGHT MILLION DOWN TO LESS THAN A $1 MILLION AVERAGE PER YEAR.

SO THOSE WERE DRASTICALLY HIT DURING THAT RECESSION.

THIS ONE IS DIFFERENT, BUT WE WANT TO MAKE SURE THAT'S ACHIEVABLE AND THAT'S WHY WE KEEP THAT THAT LOWER NUMBER REVENUES ABOVE THE LINE WE USE FOR ONE TIME EXPENDITURES AS WE BUILD OUR BUDGETS GOING FORWARD.

FRANCHISE FEES IS ONE THAT HAS BEEN PRETTY FLAT OVER THE LAST 15 YEARS.

NOT A LOT OF GROWTH HERE.

SOME OF THE REASONS BEHIND THIS COULD BE RELATED TO OUR CABLE AND OUR FRANCHISE AND HOW PEOPLE ARE STREAMING SERVICES NOWADAYS, IT'S JUST NOT GROWING AS FAST IN THAT REALM.

WE DO SEE OUR ELECTRIC FRANCHISE REVENUES GOING DOWN A LITTLE BIT YEAR OVER YEAR.

THAT COULD BE BUILT IN DUE TO EFFICIENCIES AND CHANGING HOW PEOPLE USE POWER IN OUR COMMUNITY. BUT OVERALL, THIS THIS SHOULD MAINTAIN A PRETTY FLAT GOING FORWARD, NOT

[00:50:06]

SO THIS IS THE ONE CATEGORY THAT I DO FEEL I NEED TO BRING DOWN THOSE PROJECTIONS, GO FORWARD AND GET A BETTER GRASP ON THOSE CATEGORIES, WHICH ARE FRANCHISE FEES FOR CABLE, NATURAL GAS, TELECOM AND ELECTRIC.

NATURAL GAS HAS AN IMPACT, YOU KNOW, DEPENDING ON COLD WINTERS, AS YOU ARE ENJOYING TODAY. MAYOR DEASY THE COLDER IT IS, THE MORE NATURAL GAS USED IN OUR COMMUNITY, BUT WE HAVEN'T SEEN THE REVENUES.

IT'S BEEN A LITTLE BIT WARMER, I THINK, THE LAST COUPLE OF YEARS.

OF THEN OUR HIGHWAY.

NOW THOSE WERE THE GENERAL FUND REVENUES.

NOW WE'RE GOING TO GO OVER A COUPLE OF NON GENERAL FUNDS.

OF. FIRST IS OUR HIGHWAY USER REVENUE FUND.

THIS IS A GAS TAX THAT'S PAID AT THE PUMP AND COLLECTED ON A PER GALLON BASIS.

AND THEN IT IS COLLECTED BY THE STATE AND DISTRIBUTED TO CITIES, TOWNS AND COUNTIES.

I WILL NOTE THIS THIS IS UPDATED SINCE IT WAS PROVIDED.

ON TUESDAY, BECAUSE AS I WAS WRITING MY NOTES LAST NIGHT, I REALIZE I HAD THE WRONG BUDGET. THE ORANGE LINE WAS ACTUALLY, I THINK, FROM THE YEAR PRIOR.

SO STILL, WE ARE SEEING SOME POSITIVE INFORMATION IN THIS AREA.

SO ONE THING ALSO TO NOTE WITH OUR POSITIVE GROWTH IS THE RECREATIONAL MARIJUANA EXCISE TAX, WHICH I THINK IS A 16 PERCENT EXCISE TAX THAT GOES TO THE STATE, IS DISTRIBUTED FOR SEVERAL PURPOSES. ONE IS TO HIGHWAY USER REVENUE IN THE STATE, SO THE STATE ACTUALLY GETS THE EXCISE TAX FROM THESE COLLECTIONS AND THEN DISTRIBUTE IT THROUGH OUR ALLOCATIONS TO CITIES AND TOWNS. SO THAT'S HOW WE GET OUR PORTION AND OUR SHARE OF THOSE EXCISE TAXES FOR HIGHWAY REVENUE.

IN THESE PROJECTIONS AND GOING FORWARD, WE DO SEE THAT WE'VE RECEIVED ABOUT ONE HUNDRED AND THIRTY SEVEN THOUSAND IN RECREATIONAL MARIJUANA EXCISE TAX COLLECTIONS IN THE FIRST SIX MONTHS. SO THAT DEFINITELY ADDS STRENGTH TO OUR HIGHWAY USER REVENUE PROJECTIONS AS WE MOVE FORWARD.

THIS IS A REVENUE CATEGORY THAT BACK IN THE RECESSION AREA, IT REALLY FLATTENED BECAUSE OF THAT LAST QUARTER WHEN THE COMMUNITY WAS SHUT DOWN.

THERE WAS LESS MOVEMENT IN OUR COMMUNITY, DELIVERING OUR GOODS AND SO FORTH, AND WE WERE CONCERNED AND WE SAW NUMBERS EARLY ON.

I THOUGHT, WELL, MAYBE THIS IS GOING TO LAST A COUPLE OF YEARS FOR OUR TAX AND OUR GALLONS OF SALE.

THAT WASN'T THE FACT WE ACTUALLY DID IMPROVE IN THIS AREA AND WE DO SEE GROWTH GOING FORWARD. SO WE ARE ABOUT 800000 OVER OUR ESTIMATES AND WE DO EXPECT THAT TO CONTINUE OVER THE YEAR. THIS IS ONE WHERE WE ACTUALLY HAVE A LOWER GROWTH RATE, YES.

RICK, MAYOR HAS A QUESTION.

YES. THAT'S RIGHT.

I MEAN, TO CUT YOU OFF.

I WAS JUST WONDERING, YOU WERE MENTIONING THE EXCISE TAX FOR THE MARIJUANA AND THEN ADDED ON TO THE SALES TAX FROM THE MARIJUANA.

BASICALLY, IN THE LAST SIX MONTHS, WE'VE RECEIVED ABOUT A QUARTER MILLION DOLLARS.

IS THAT CORRECT? BETWEEN THE TWO AND MORE TO COME? YEAH. SO WE CAN KIND OF ESTIMATE THAT IT MAY BE AROUND A HALF MILLION DOLLARS PER YEAR WE'RE GETTING FROM RETAIL MARIJUANA SALES IN FLAGSTAFF, AM I...

YES, IT'S MORE THAN THAT.

I HAVE A SLIDE AT THE END.

I DID UPDATE THE SLIDE AT THE END TALKING ABOUT RECREATIONAL MARIJUANA EXCISE TAX, AND I'LL GIVE YOU SOME MORE GOOD NEWS.

ALL RIGHT. SOUNDS GOOD, SORRY TO INTERRUPT...

WHEN WE GET TO THAT SLIDE.

YEAH, BUT THERE'S MANY COMPONENTS TO THAT, THAT RECREATIONAL MARIJUANA.

AT THIS GROWTH RATE, WE DO A LOWER GROWTH RATE ABOUT ONE POINT SEVENTY FIVE PERCENT BECAUSE THE GAS TAX IS REALLY BASED ON A PER GALLON BASIS.

AND AS WE BRING IN MORE FUEL EFFICIENT VEHICLES AS WE TRANSFER INTO AN ELECTRIC TYPE VEHICLE SYSTEMS, WE DEFINITELY DON'T EXPECT THESE REVENUE TO CONTINUE TO GROW IN A THREE, TWO PERCENT OR FOUR PERCENT RANGE.

WE REALLY THINK THESE ARE A FLATTER GROWTH PERCENT OF A REVENUE IN OUR COMMUNITY.

[00:55:05]

THESE REVENUES ARE DEDICATED FOR.

SEVERAL PURPOSES AND ALLOCATED BASED ON THE PREVIOUS ALLOCATIONS TO.

AND I DIDN'T WRITE THIS DOWN. RECREATION, ARTS AND SCIENCE, TOURISM, ECONOMIC DEVELOPMENT. AND I JUST DROPPED ONE OFF.

PARKS AND RECREATION.

THANK YOU. HERE'S ONE WHERE WE DEFINITELY HAD SOME CONCERNS IN A RECESSIONARY PERIOD.

WE TALKED ABOUT THIS A LITTLE EARLY ON THE GENERAL FUND SALES TAX REVENUES, BUT THIS ONE DID HAVE A BIG IMPACT THAT LAST QUARTER OF 2020, WE WERE DOING VERY GOOD THE FIRST THREE QUARTERS AND THEN THE SHUTDOWN OF THE THE COMMUNITY AND SO FORTH HAD A MAJOR IMPACT.

WE DEFINITELY SAW THAT.

AND IT CONTINUED FOR THE WHOLE YEAR THE FOLLOWING YEAR, COLLECTING ABOUT 8.3 MILLION FOR TWO YEARS BELOW OUR PRIOR ESTIMATES.

GOING INTO THE BUDGET SESSION LAST YEAR, WE WERE STILL CONCERNED THAT THEY MAY NOT REBOUND AS MUCH, BUT THEY DID, WHICH IS POSITIVE.

AND EVEN THIS YEAR, THE MODELING OF REVENUE ESTIMATES IS SEEING A HUGE REBOUND IN REVENUES FOR FISCAL YEAR 2022.

THIS IS AN AREA WHERE, YOU KNOW, INVESTING IN TOURISM, ADVERTISING, MARKETING, THE GREAT WORK DISCOVER FLAGSTAFF DOES HELPS MITIGATE HOW OUR REVENUES CHANGE VERSUS MAYBE THE STATE NUMBER STATE NUMBERS.

I BELIEVE WE'RE PROBABLY LOWER THAN WHAT WHAT WE OCCURRED AND REALLY HELPED US NOT ONLY MAINTAIN A LEVEL.

YEAR OVER YEAR, BUT GROW QUICKLY.

WHEN THINGS OPENED UP AGAIN.

SO THIS WILL WILL AGAIN MODEL TO THE THREE PERCENT GROWTH OR SO OVER THE NEXT SEVERAL YEARS. THEN, OF COURSE, IN THAT RECESSIONARY PERIOD, WE'RE GOING TO WATCH AND SEE HOW THESE REVENUES ARE IMPACT IN THE OUT YEARS.

BUT THIS IS GREAT NEWS.

WHEN YOU SEE THIS TREND LINE COMING FROM PRIOR YEARS, WE START TO GET RIGHT BACK INTO THE LEVELS WE WERE PRE-PANDEMIC.

SO A GREAT REBOUND IN THIS AREA AND DEFINITELY RESOURCES AVAILABLE FOR THOSE FUNDS.

AND HERE IS ALSO ANOTHER UPDATED SLIDE I JUST DIDN'T HAVE THE TIME TO PUT INFORMATION IN PRIOR TO TUESDAY.

I WANT TO TALK ABOUT OUR TRANSPORTATION TAXES.

WE'LL TALK ABOUT THESE A LITTLE BIT LATER WHEN WE'RE TALKING ABOUT INFRASTRUCTURE AND THOSE TYPES OF THINGS, BUT OUR TRANSPORTATION TAX REVENUES, WE HAVE FOUR CATEGORIES ROAD REPAIR, STREET SAFETY RALPH SIXTY SIX TO BUTLER OVERPASS, ALSO REFERRED TO AS LONE TREE OVERPASS. OUR TRANSPORTATION TAXES, WHICH IS ROAD EXPANSION, BIKE AND PAD AND SOME OTHER AREAS. MULTIPLE ITEMS IN THAT TRANSPORTATION TAX, AS WELL AS A TRANSIT TAX, WHICH WE HAVE AN IGA WITH OUR MOUNTAIN LINE TO DISTRIBUTE TO AND DELIVER TRANSIT SERVICES IN OUR COMMUNITY. SO THESE ALL HAVE THEIR DIFFERENT TAX RATES, SO THEY HAVE A DIFFERENT REVENUE GROWTH, BUT HERE YOU CAN SEE THEY HAVE BEEN DOING VERY WELL OVER THE LAST COUPLE OF YEARS. THEY WERE NOT IMPACTED, LIKE MAYBE OUR GENERAL FUND SALES TAX REVENUES WERE OR THE BP TAXES, FOR SURE.

AND THEY'VE STAYED STRONG OVER THE LAST COUPLE OF YEARS AND THEY CONTINUE TO BE STRONG AND THEY'RE KIND OF IN THE THE REALM OF GENERAL SALES TAX.

BUT THEIR GROWTH THIS YEAR IS ABOUT THREE POINT SEVEN MILLION THAT WE PROJECT OVER BUDGET, THAT WE HAD APPROVED AND DEFINITELY OVER LAST YEAR'S ACTUALS.

HERE YOU CAN SEE HOW THEY IMPACT EACH ONE OF THESE CATEGORIES OF SALES TAXES, AND THESE ARE DEFINITELY BENEFICIAL TO DELIVER SERVICES THAT WE WANT ON THESE TAX MEASURES.

SO GREAT NEWS THERE AS WE MOVE INTO THE NEXT BUDGET CYCLE.

THE LAST ONE I ALSO WANTED TO TOUCH ON AS A GROUP HERE, IS OUR

[01:00:03]

THIS IS THE PORTION OF EXCISE TAX THAT IS DISTRIBUTED FOR PUBLIC SAFETY ALLOCATIONS.

THEY DO AN ALLOCATIONS TO CITIES AND TOWNS BASED ON THE NUMBER OF EMPLOYEES IN THE PERSONALS, THE PENSION RETIREMENT SYSTEMS FOR THE CITY, FOR FIRE AND POLICE, THEY CALCULATE IT, AND THEY DISTRIBUTE IT TWICE A YEAR TO THE CITY OF FLAGSTAFF.

HERE I'M SHOWING KIND OF WHAT THE COLLECTIONS WE'VE HAD OVER THE LAST COUPLE OF YEARS OR THE LAST TWO PAYMENTS, I SHOULD SAY.

IN JUNE, WE RECEIVED ABOUT ONE HUNDRED AND THIRTY FIVE THOUSAND AND THAT WAS RIGHT ON PACE WITH WHAT MY ESTIMATES WERE GOING FORWARD, BUT IN DECEMBER.

LO AND BEHOLD, IT WAS ALMOST $200000 IN SHARE IN THIS REVENUE SOURCE.

SO THIS IS AN AREA THAT THAT WE ARE LOOKING AT FOR THE COMING FISCAL YEAR TO HAVE SOME RESOURCES. JUST TO REMIND COUNSEL, WE DID OBLIGATE TWO HUNDRED AND SEVENTY TWO THOUSAND LAST IN THE CURRENT BUDGET CYCLE FOR THREE FIREFIGHTER EMT AND SOME EQUIPMENT RELATED TO THE ALTERNATE RESCUE MODEL THAT WE WERE WORKING ON.

SO WE HAVE DEDICATED SOME OF THESE RESOURCES AND WE HAVE A PROJECTION ABOUT 400000 ANNUAL GOING FORWARD THAT WILL DISCUSS DURING THE BUDGET RETREAT.

SO WITH THAT, THAT WAS MY LAST ITEM ON REVENUE UPDATES, AND I AM OPEN FOR QUESTIONS.

ALL RIGHT. NOT SEEING ANY HANDS, NOT SEEING ANY CS OR CUES IN THE CHAT AND JUST NO, I DID FINISH EARLIER, RIGHT? YOU DID IT CREDIT GIVEN COUNCIL MEMBER SALAS.

UM. THANK YOU, MR. TADDER. YOU ARE DEFINITELY THE UNBEATABLE GURU OF OUR FINANCE AND FINDING FUNDS TEAM, SO I WANT TO PROVIDE A SPACE FOR A SHORT DISCUSSION ON HOW WE COLLECT SHORT TERM RENTALS.

BBB TAX FOR SHORT TERM RENTALS.

I BELIEVE WE HAVE ABOUT ALMOST 900 SHORT TERM RENTALS WITHIN THE CITY.

AND HOW DO WE COLLECT? HOW DO WE TRACK IF IT IS IT SHORT TERM RENTAL THROUGH BRBO OR AIRBNB OR OTHER OTHER ONLINE TRAVEL AGENCIES? IF WE ARE EFFICIENTLY COLLECTING BBB TASK FROM ALL THESE SHORT TERM RENTALS? THANK YOU, COUNCIL MEMBER SALAS.

THIS AREA OF SALES TAX COLLECTIONS, THEY ARE RESPONSIBLE FOR THE GENERAL SALES TAX AS WELL AS THE MOTEL HOTEL SALES TAX, THE EXTRA TWO PERCENT FOR B, B AND B, IF A AGENCY IS OR AN INDIVIDUAL OR BUSINESS IS REGISTERED WITH A PLATFORM THAT PROVIDES SHORT TERM RENTAL SERVICES.

IT IS ACTUALLY THE RESPONSIBILITY OF THE PLATFORMS SUCH AS AIRBNB, VRBO AND SO FORTH TO COLLECT AND PROVIDE THOSE SALES TAXES TO THE STATE.

SO FROM THE ASPECT OF THOSE.

INDIVIDUALS RUNNING THEIR SHORT TERM RENTALS THROUGH THOSE SERVICES.

WE ARE VERY CONFIDENT WE'RE RECEIVING THOSE SALES TAX NOW IN OUR REVENUES.

THE ONES THAT KIND OF FLY UNDER THE RADAR ARE THOSE THAT DON'T USE THAT TYPE OF A PLATFORM, MAYBE A CRAIGSLIST OR SOME OTHER THINGS.

BUT WE DO.

WE HAVE INVESTED.

LAST JANUARY, WE STARTED INVESTING IN A SOFTWARE.

THAT TRACKS OUR SHORT TERM RENTALS.

WE THIS WAS OUR FIRST YEAR WE JUST FINISHED OUR FIRST YEAR OF MONITORING AND LOOKING AT

[01:05:06]

WE REQUIRE.

PEOPLE DOING SHORT TERM RENTALS, IT'S A IT'S AN ORDINANCE THAT SHORT TERM RENTALS ARE TO REGISTER ON OUR PLATFORM AND PROVIDE AN EMERGENCY CONTACT AS WELL AS A.

HOST THESE AGREEMENTS IN THEIR PLACE OF BUSINESS, THEY'RE SHORT TERM RENTAL.

WE HAVE BEEN TRYING TO LET THEM PROACTIVELY REGISTER THIS YEAR, AND WE'RE GOING TO START PUTTING SOME MORE EFFORTS INTO ASSURING PEOPLE ARE REGISTERING.

UH, THIS THIS COMING YEAR, WE ARE IN THE PROCESS OF HIRING A POSITION TO ASSIST US WITH THAT AS A POSITION, WE'VE GOT TO PROVE PRIOR TO THE PANDEMIC AND WE'VE BEEN HOLDING OPEN FOR A LITTLE WHILE. IT IS A BUSINESS LICENSE.

WELL, IT IS A LICENSING SPECIALIST.

AND THIS LICENSING SPECIALIST IS WE LOOK TO HIRE THIS POSITION TO LOOK AT WHO'S REGISTERING OR WHAT'S COMING UP ON OUR SOFTWARE AS SHORT TERM RENTALS, AS WELL AS GO LOOK AT OUR TPT LICENSES, OUR TRANSACTIONAL PRIVILEGE TAX LICENSES TO ASSURE THAT THEY ARE NUMBER ONE, REGISTERING.

NUMBER TWO, THEY HAVE A TPT LICENSE THAT IS A PROGRESS FOR THIS YEAR.

I EXPECT US TO DO A LOT OF GOOD WORK ONCE WE GET THAT POSITION FILLED THIS COMING YEAR.

SO THAT'S KIND OF AN UPDATE WHERE WE ARE WITH SHORT TERM RENTALS.

HOPEFULLY, I ANSWERED ALL YOUR QUESTIONS THERE.

AND THANK YOU, MR. RICK TADDER, SO DO WE HAVE A TOTAL NUMBER OF TAXES COLLECTED THROUGH THE SHORT TERM RENTALS? I DO NOT HAVE THAT NUMBER.

AT MY HIP POCKET, BUT I WILL SEE IF MY TEAM CAN COME UP WITH THAT FIGURE.

THANKS A BUNCH. ALL RIGHT, YOU'RE WELCOME.

I'M KIND OF DISAPPOINTED TO HEAR THAT, RICK, I PICTURE YOU WITH LIKE THE BATMAN UTILITY BELT OF JUST CALCULATORS AND DATA AND FOLDERS EVERYWHERE.

I THINK MY MY TEAM IS MY, MY BATMAN UTILITY BELT.

THEY ARE ALSO AWESOME TEAM TO TO WORK WITH.

PERHAPS NOT AS STYLISH, THOUGH WE HAVE COUNCIL MEMBER MCCARTHY HAS A QUESTION.

AND THEN COUNCIL MEMBER ASLAN HAD ASKED, WAS THE FIRE MONEY ALLOTTED TO THREE EMTS OR THREE PARAMEDICS TO WHICH? EMTS, EMTS.

OK, COUNCIL MEMBER MCCARTHY OVER TO YOU.

THANK YOU. HEY, RICK, I THINK WE SAW THE ADVANTAGE OR THE EFFECTS OF THE 2019 STIMULUS THAT THE FEDERAL GOVERNMENT PUT INTO OUR ECONOMY, BUT IT SEEMS THAT THE OTHER SIDE OF THAT SAME COIN IS THAT WE'RE GOING TO BE SEEING A LOT MORE INFLATION THIS YEAR AND IN THE NEXT FEW YEARS.

AND YOU KNOW, THAT COULD ACTUALLY HURT US.

SO SOME GOOD, SOME BAD.

DO YOU HAVE ANY THOUGHTS ABOUT THAT? OH, INFLATION.

YOU KNOW, I'M NOT AN ECONOMIC INDIVIDUAL, BUT THERE'S TWO SIDES TO THAT, YOU KNOW, AS THE COST OF PRODUCTS INCREASE THAT INCREASES OUR SALES TAX, YOU KNOW, YOU THINK ABOUT IT.

IF THINK SOME OF THE COSTS MORE, WE GET MORE SALES TAX FROM THOSE PRODUCTS.

SO YOU KNOW, THERE COULD BE SOME GIVE AND TAKE FROM THAT IF IT'S AN IMPACT TO PEOPLE'S ABILITY TO.

I HAVE LESS DISPOSABLE INCOME, THAT'S WHERE WE SEE THE IMPACT OF PEOPLE POSSIBLY BUYING DURABLE GOODS AND THINGS THAT ARE TAXABLE.

I HAVE NOT HAD A CHANCE TO LOOK AT MODELING OR WHAT ECONOMISTS ARE SAYING AS FAR AS THE IMPACT THERE, THOUGH.

DEFINITELY ONE OF THOSE CONCERNS I TALKED ABOUT AT THE BEGINNING AND SOMETHING WHY I MAY NOT LOOK AT THE STATE FOUR PERCENT OF FOUR AND A HALF, SEVEN PERCENT GROWTH, I WANT TO MAKE SURE WE UNDERSTAND THAT BETTER.

YEAH, WE DON'T NEED TO DWELL ON THIS.

BUT THE OTHER SIDE OF THE COIN, MAYBE, IS THAT OUR COSTS GO UP FOR THE CITY TO DO THE SAME AMOUNT OF GOOD WORK.

YEAH, ABSOLUTELY. YEAH, ABSOLUTELY.

WE'RE DEFINITELY SEEING THAT OUR CONSTRUCTION PROJECTS AND SO FORTH.

SO DEFINITELY THOSE TRANSPORTATION TAX REVENUES ARE GOING TO HELP THOSE PROGRAMS. WELL, THANK YOU FOR THE TIME FOR YOU AND THE COUNCIL.

YEAH. ANY OTHER QUESTIONS? ALL RIGHT. OK, SO THAT ACTUALLY BRINGS US TO OUR FIRST BREAK WHERE WE'RE EASING YOU INTO

[01:10:04]

BUT I'M GOING TO SUGGEST THAT WE SHORTEN THAT SINCE WE'RE GOING A LITTLE BIT EARLIER AND WE COME BACK AT NINE FIFTY SEVEN.

SOUND GOOD TO EVERYBODY.

ALL RIGHT. HEARING NO OPPOSITION 9:57 GO DO YOUR SQUATS.

GET YOUR COFFEE WARM UP.

I WAS WHINING ABOUT IT BEING 38 HERE AND ONLY GOING UP TO 60.

SO MAYOR, I WILL REVOKE EVERY COMPLAINT I'VE MADE THIS MORNING.

ALL RIGHT. NINE. FIFTY SEVEN.

THANK YOU. THE GOOD PART IS, I DON'T ACTUALLY SEEING MY BREATH NOW AT THIS POINT.

AN HOUR LATER, SO WE'RE GOOD.

THANK YOU, EVERYONE. COUNCIL MEMBER MCCARTHY, I THINK THAT'S AN EXCELLENT SUGGESTION.

EXCELLENT SUGGESTION.

ALSO, THE THE GIFT GAME IS STRONG.

I'M JUST CURIOUS, GREG, IF THAT'S WHAT YOU'RE DOING IN OUR IN OUR OFF TIME HERE, THAT'S WHAT I'M THAT'S WHAT I'M PICTURING IN MY HEAD.

THAT'S ME DOING SQUATS.

HOLD ON. I DIDN'T HAVE I DIDN'T GO AND DO SQUATS, BUT I WENT AND MADE MYSELF A MOCHA GOD, THAT WAS THAT GOOD, HUH? IT'S FUNNY. OK.

ALL RIGHT, HEIDI, ARE YOU READY TO TAKE US AWAY WITH AVAILABLE RESOURCES AND FIXED COSTS? I AM READY.

SO GOOD MORNING AGAIN.

IF IT'S ALL RIGHT WITH YOU, I'M GOING TO LEAVE MY CAMERA OFF AS I PRESENT.

I DO HAVE A HIGH SCHOOL STUDENT THAT'S AN ONLINE STUDENT WHO IS UP AND GOING NOW, SO I DON'T WANT TO CRASH IN THE MIDDLE OF MY PRESENTATION.

SO WITH THAT, I AM HERE TO TALK NOW ABOUT AVAILABLE RESOURCES AND FIXED COSTS AS WE ARE HEADING INTO THE PREPARATION OF OUR FISCAL YEAR 22-23 BUDGET.

SO THE FIRST SLIDE THAT YOU WILL SEE BEFORE YOU IS THE AVAILABLE RESOURCES THAT WE HAVE CURRENTLY IDENTIFIED FOR THE GENERAL FUND.

SO SPECIFICALLY, I WILL TALK BRIEFLY ABOUT SOME ONE TIME CAPACITY THAT WE HAVE AND SOME ONGOING CAPACITY AS WE'RE GOING INTO THE BEGINNING OF THIS BUDGETING PROCESS.

SO AS RICK MENTIONED IN FISCAL YEAR 2020-21, WE SAW SOME SIGNIFICANT REVENUE GROWTH OVER OUR PROJECTIONS THAT WE HAD FOR THE END OF LAST FISCAL YEAR.

AS A RESULT OF THAT, THAT IS GIVEN US APPROXIMATELY $5 MILLION IN ONE TIME CAPACITY TO SPEND DURING OUR FISCAL YEAR TWENTY THREE PROCESS.

THIS AMOUNT OF MONEY HAS SEVERAL DIFFERENT AREAS, AS RICK MENTIONED, BUT APPROXIMATELY TWO POINT SIX MILLION DOLLARS OF THIS $5 MILLION IS RELATED TO THE GENERAL SALES TAX GROWTH THAT WE DID NOT EXPECT OVER OUR YEAR END ESTIMATES.

WE ALSO HAVE ABOUT SIX HUNDRED THOUSAND DOLLARS, AS RICK MENTIONED IN STATE SHARED SALES TAX. THREE HUNDRED THOUSAND IN THE AUTO LOU SHARED TAX ABOUT HALF A MILLION DOLLARS IN BUILDING PERMIT REVENUE.

SAME WITH INTEREST INCOME, PLUS A VARIETY OF OTHER VARIANCES.

BUT AT THE END, THE GOOD NEWS IS WE DO HAVE SOME ONE TIME CAPACITY AS A RESULT OF THAT.

ALSO ON THE OTHER SIDE OF THAT, FOR FISCAL YEAR TWENTY ONE, WE SAW A SIGNIFICANT EXPENDITURE SAVINGS.

THE EXPENDITURE SAVINGS OVER OUR ESTIMATES AT THE END OF TWENTY ONE HAVE RESULTED IN ABOUT THREE AND A HALF MILLION DOLLARS OF ONE TIME CAPACITY FOR US DURING THIS BUDGET PROCESS. MOST, IF YOU REMEMBER A FISCAL YEAR, TWENTY ONE, THE CITY WAS IN THE SIGNIFICANT STAGE OF OUR ECONOMIC RECESSION PLAN.

AS A RESULT, THE STAFF AND EMPLOYEES OF THE CITY DID A GREAT JOB OF REALLY LOOKING AT THEIR EXPENDITURES IN TWENTY ONE, ONLY MOVING FORWARD WITH NECESSARY EXPENSES AND HOLDING BACK FROM A LOT OF UNNECESSARY SPENDING THAT WE DID NOT DO DURING THE SIGNIFICANT STAGE OF THE PLAN. AS A RESULT OF THAT? WE HAD A SAVINGS, LIKE I SAID, OF THREE AND A HALF MILLION DOLLARS OF THAT.

WE DID HAVE A SIGNIFICANT NUMBER OF VACANCIES DURING FISCAL YEAR TWENTY ONE THAT MANY OF THEM WERE HELD OFF FROM HIRING, WHICH RESULTED IN ABOUT $2 MILLION IN SAVINGS OF THAT THREE AND A HALF MILLION.

AND THEN THE BALANCE OF THAT, THE OTHER ONE AND A HALF MILLION WAS SAVINGS IN CONTRACTUAL AND COMMODITIES.

[01:15:02]

TWENTY THREE. AND THEN FINALLY, AS RICK ALSO MENTIONED IN TWENTY TWO TO TWENTY THREE, WE HAVE SOME REVENUE PROJECTION GROWTH OF APPROXIMATELY $3 MILLION.

THIS IS ONGOING GROWTH, WHICH IS GREAT NEWS TO THE GENERAL FUND.

THIS IS MADE UP PRIMARILY OF THREE AREAS WHICH RICK ALREADY MENTIONED, AND I'LL JUST BRIEFLY TALK ABOUT AGAIN, WE HAVE AN INCREASE WITH OUR PERCENTAGE OF STATE SHARED REVENUES, A MILLION DOLLARS RELATED TO GROWTH IN STATE SHARED SALES TAX, WHICH IS ABOVE THE CENSUS GROWTH.

AND THEN ABOUT A MILLION DOLLARS FOR GENERAL CITY SALES TAX.

SO THE SUMMATION OF THOSE THREE MAIN CATEGORIES IS WHERE WE'RE COMING UP WITH OUR $3 MILLION OF ONGOING CAPACITY.

SO MOVING RIGHT IN WITH WHAT WE HAVE, WE HAVE ABOUT 10 AND A HALF MILLION DOLLARS IN ONE TIME CAPACITY AND $3 MILLION IN ONGOING CAPACITY FOR THE GENERAL FUND.

AND THEN I JUST WANT TO MENTION THAT AS AN OPTION, WE DO HAVE PRIMARY PROPERTY TAX.

AT THIS TIME, WE HAVE A SIX PERCENT INCREASE THAT IS ALLOWABLE OVER THE LAST TWO YEARS.

THE CITY HAS OPTED TO NOT ALLOW THE TWO PERCENT ANNUAL INCREASE IN PRIMARY PROPERTY TAX LEVY, WHICH THEN ROLLS TO THE NEXT YEAR AND GIVES US THE CAPACITY IN FUTURE YEARS IF WE SO MAKE THE CHOICE TO DO THAT.

SO LIKE I MENTIONED THIS YEAR, WE HAVE SIX PERCENT ALLOWABLE LEVY, WHICH COULD BE UP TO FOUR HUNDRED AND TWENTY THOUSAND OF ONGOING REVENUE.

AND JUST AS A NOTE, EACH TWO PERCENT INCREASE IS ABOUT ONE HUNDRED AND FORTY THOUSAND DOLLARS IN REVENUES.

BUT THAT IS WHAT WE HAVE FOR THE GENERAL FUND.

AND JUST TO NOTE BEFORE MOVING ON TO THE NEXT SLIDE IS AT THIS TIME AT THE TIME THAT THIS PRESENTATION WAS PUT TOGETHER, I FINANCE WAS NOT COMPLETELY FINISHED WITH COMPLETING FIVE YEAR PLANS THROUGHOUT THE CITY.

SO WE HAVE NEARLY 30 DIFFERENT FIVE YEAR PLANS THAT WE COMPLETE BASED ON ALL THE COLORS OF MONEY. AND AT THIS TIME AT THE TIME, THIS PRESENTATION WAS COMPLETE AND WE WEREN'T QUITE FINISHED WITH THOSE.

SO WE DID SHARE TODAY THE GENERAL FUND, BUT WE ARE WORKING WITH ALL OF THE DIVISIONS TO GIVE THEM UPDATES ON WHAT THEIR CAPACITY IS FOR THE FISCAL YEAR TWENTY THREE BUDGET.

SO MOVING ON TO THE NEXT SLIDE, I JUST WANT TO QUICKLY TALK ABOUT PENSION CONTRIBUTION RATES. I THINK THIS SLIDE SAYS IT ALL.

IT'S AMAZING THAT IN FISCAL YEAR TWENTY THREE, WE ARE SEEING OBVIOUSLY ONCE AGAIN SOME DECLINES IN THE PENSION CONTRIBUTION RATES.

SO THIS IS EXCITING WITH ALL THE WORK WE'VE DONE ON THE PSPRS PAYING DOWN OUR PENSION LIABILITY LAST FISCAL YEAR, WHICH IS DEFINITELY CONTRIBUTING TO INCREASE CAPACITY IN THE GENERAL FUND IN THE YEARS TO COME.

SO SLIGHT DECREASE IN FISCAL YEAR TWENTY THREE HAS BEEN SHARED BY AFRS, SO THE NEW CONTRIBUTION RATE WILL BE ABOUT 12 PERCENT PSPRS FOR PDM FIRE.

ALL TIERS ARE EXPECTED TO SLIGHTLY DECREASE IN THE NEXT YEAR, AND THESE RATES ARE OFF OF OUR ACTUAL FIRST OFFICIAL ACTUARIAL REPORT THAT WE HAVE RECEIVED SINCE THE PENSION LIABILITY HAS BEEN PAID DOWN.

SO EXCITING NEWS THERE, AND THEN YOUR PLAN IS EXPECTED TO STAY FLAT.

NEXT SLIDE. SO THEN JUST TO SHOW YOU IN THE COSTS OF THOSE PLANS RELATED TO THE RATES, WE ARE EXPECTING TO SEE SOME MODERATE DECLINES IN THE COST TO THE PLANS BASED ON THE REDUCTIONS IN RATES.

SO THAT IS THE SLIDE YOU SEE BEFORE YOU.

SO ONCE AGAIN, THE SLIDE SAYS IT ALL.

WE SEE A NICE DECREASE THERE IN OUR PSPRS.

ALL RIGHT. THE MOVING ON TO MY NEXT SLIDE, ONCE AGAIN, I AM FOCUSING ON GENERAL FUND FOR THESE NEXT COUPLE OF SLIDES, AND THESE ARE FIXED COSTS THAT WE HAVE IN THE GENERAL FUND.

[01:20:04]

IF YOU RECALL, LAST YEAR WE SHARED WITH COUNCIL THAT WE WERE BUILDING IN THE MERIT FOR FIVE YEARS, WHICH WE WERE SUCCESSFUL IN DOING, AND WE HAVE CONTINUED TO ADD ONE MORE YEAR OF THE MERIT INCREASE INTO THE GENERAL FUND PLAN.

SO THAT IS EXCITING.

THE NEXT ITEM IS MINIMUM WAGE CURRENTLY, AND WE WILL TALK A LITTLE BIT MORE ABOUT THIS LATER WHEN WE'RE TALKING ABOUT EMPLOYEES, BUT CURRENTLY WE'RE AT FIFTEEN FIFTY AN HOUR FOR MINIMUM WAGE.

GOING INTO NEXT YEAR, IT COULD BE FIFTEEN FIFTY TO, WHO KNOWS, STARTING NEXT FISCAL YEAR IS WHEN THE CITY HAS TO ADJUST MINIMUM WAGE BASED ON CPI.

AND AS I THINK WE'VE ALREADY HEARD THIS MORNING, WE THINK THAT IS INCREASING AND WE REALLY DON'T KNOW WHERE IT'S GOING TO END FOR THE YEAR.

SO WE'VE KIND OF PUT IN A RANGE THE COST FORM IN THE MINIMUM WAGE INCREASES IN FISCAL YEAR TWENTY THREE AT THIS TIME.

BASED ON THE BEST KNOWLEDGE WE HAVE, WE THINK COULD RANGE ANYWHERE FROM FORTY NINE THOUSAND DOLLARS TO TWO HUNDRED AND EIGHTY NINE THOUSAND DOLLARS FOR THE CITY.

SO MORE TO COME ON THAT AS WE GET BETTER PROJECTIONS ON CPI AND NEXT FALL IS WHEN WE WILL REALLY SEE THE IMPACT OF THAT.

THIS NEXT LINE IS THE EXCITING LINE I WANTED TO SHARE WITH MANY.

THE WHOLE TIME I'VE WORKED AT THE CITY, WE'VE SEEN MILLIONS OF DOLLARS OF INCREASE IN PENSION COSTS EVERY YEAR AND THIS YEAR WE ARE ACTUALLY SEEING A DECREASE OF THREE HUNDRED AND FIFTY FIVE THOUSAND DOLLARS. SO THAT IS EXCITING.

WHICH NEARLY OFFSETS THE INCREASED HEALTH AND DENTAL INSURANCE FOR THE CITY SHARE THAT WE ARE EXPECTING NEXT YEAR.

SO THAT IS EXCITING NEWS AS WELL.

AND THEN THE LAST TWO ITEMS, THE LIABILITY AND PROPERTY INSURANCE, AS WELL AS WORKERS COMPENSATION. WE DO NOT HAVE THOSE NEW RATES AT THIS TIME, BUT JUST WANTED TO REMIND COUNCIL THAT THOSE ARE AREAS THAT WE HAVE CONTINUED FIXED COST ANNUALLY AND EXPECT MAYBE TO SEE INCREASES.

ALL RIGHT. AND THEN THE LAST SLIDE THAT I WANT TO SHARE THIS MORNING ARE JUST A FEW OTHER CONSIDERATIONS TO THINK ABOUT AS WE'RE DOING THE FISCAL YEAR TWENTY TWO-TWENTY THREE BUDGET THE BUDGET TEAM THIS YEAR WHEN SETTING THE EXPECTATIONS WITH STAFF ABOUT WHAT WE WERE HOPING TO ACCOMPLISH DURING THIS BUDGET CYCLE IS THE FIRST ITEM IS MOVING ANNUAL ONE TIME REQUEST TO ONGOING.

THE BUDGET TEAM COMMITTED TO TRYING TO MOVE 25 PERCENT OF THOSE REQUESTS FROM A ONE TIME APPROVAL INTO THE ONGOING APPROVAL.

THE COST OF DOING SO IS ABOUT SEVEN HUNDRED THOUSAND TO THE TOTAL AMOUNT THAT WE CURRENTLY HAVE BUDGETED FOR, ONE TIME EXPENDITURES THAT REALLY SHOULD BE IN THE ONGOING CATEGORY IS $2.8 MILLION.

SO BUDGET TEAM IS HOPING TO MOVE THOSE.

THOSE ARE JUST ANNUAL OPERATING COSTS, FOR EXAMPLE, SOFTWARE MAINTENANCE.

WE HAVE MANY SOFTWARE MAINTENANCE CONTRACTS IN THE CITY THAT ARE FUNDED ON AN ANNUAL BASIS WITH ONE TIME MONEY THAT WE ALL KNOW SHOULD BE ONGOING.

SO WE'RE TRYING THIS YEAR TO MAKE A GOOD STEP TO MOVING THOSE JUST NORMAL OPERATING COSTS INTO AN ONGOING CAPACITY.

THE NEXT ITEM IS REMEMBERING THE STATE ASSESSMENT FOR MINIMUM WAGE OUR CURRENT YEAR.

BOMB ASSESSMENT WAS 1.1 MILLION, OBVIOUSLY WITH INCREASES TO MINIMUM WAGE, WE WOULD EXPECT AN INCREASE TO THAT ASSESSMENT.

AT THE TIME OF THIS MEETING TODAY, WE ALL KNOW THIS IS STILL IN LITIGATION, AND I DO NOT HAVE ANY FURTHER UPDATES AT THIS TIME OTHER THAN AN EXPECTATION THAT THIS NUMBER WOULD GO UP. THE NEXT ITEM IS THE STATE ASSESSMENT FOR THE FIREFIGHTER CANCER FUND.

THIS IS NEW LEGISLATION THAT CHANGED LAST YEAR, AND WE ARE CURRENTLY WORKING WITH RISK MANAGEMENT TO BETTER UNDERSTAND THE ONGOING FINANCIAL IMPACT TO THE CITY AND HOW THIS MAY COMPLEMENT OUR CURRENT INSURANCE POLICIES.

THIS ASSESSMENT IS CHARTS TO CITIES BASED ON POPULATION.

[01:25:05]

WE KNOW THERE'S A LOT OF BILLS BEING PROPOSED AND WE JUST DON'T KNOW THE IMPACT.

SO WE HAVE TO THINK ABOUT THAT AND CONSIDER THAT AS WE ARE GOING THROUGH THE BUDGET PROCESS. AND THEN THE LAST PIECE I WANT TO JUST TALK ABOUT IS CURRENTLY WE HAVE RECEIVED MANY NEW PERSONNEL REQUESTS IN THE BUDGET PROCESS.

SO IN THE GENERAL FUND ALONE, WE'VE RECEIVED 18 FULL TIME EQUIVALENT REQUESTS FOR NEW POSITIONS, AS WELL AS SIX ADD PAYS.

THOSE ARE AT AN ESTIMATED COST OF $2 MILLION.

WE'VE ALSO RECEIVED TWELVE POINT NINE SIX FULL TIME EQUIVALENT REQUESTS IN THE SUMMATION OF ALL OF OUR OTHER FUNDS.

AND THEN RECLASSIFICATION REQUESTS IN ALL THE FUNDS IS COMING IN AT ABOUT TWO HUNDRED AND SIXTY SIX THOUSAND DOLLARS.

SO THOSE ITEMS ON THIS SLIDE ARE CURRENTLY NOT IN THE BUDGET OTHER THAN WE DO HAVE A LITTLE BIT OF A SET ASIDE FOR SOME OF THE STATE ASSESSMENT, BUT JUST THINGS THAT TO CONSIDER WHAT BUDGET TEAM IS LOOKING AT AND WHAT WE'VE RECEIVED ALREADY DURING THE BUDGET PROCESS. SO AT THIS TIME, THAT'S THE LAST SLIDE I HAVE, AND I'M HAPPY TO ANSWER ANY QUESTIONS IF WE HAVE ANY.

MAYOR, I SEE YOU GO FOR IT.

YEAH, A FEW QUESTIONS HERE.

I KNOW FOR THE FIRST FEW YEARS WITH THE PENSION THAT WE'RE NEEDING TO BUILD UP A CONTINGENCY FUND.

AT WHAT POINT ARE WE EXPECTING THAT THAT COST SAVINGS IS GOING TO START BEING AN EVEN MORE SUBSTANTIAL AMOUNT? MAYBE, RICK, I KNOW I WAS GOING TO SAY MAYBE YOU CAN HELP ME ON THIS ONE, I THINK IT'S FIVE YEARS, BUT I DON'T WANT TO MISSPEAK.

SO WE ARE RESERVING THE FIRST FIVE YEARS OF SAVINGS IN THE GENERAL FUND, I THINK WE'RE IN THE SECOND YEAR NEXT YEAR WILL BE THE THIRD.

IT WAS JUST UNDER $2 MILLION PER YEAR AND WE USED THE YEARS AFTER THAT TO ASSURE THE MERITS CAN BE AN ONGOING RESOURCE.

SO WE HAVE ONE TIME MONEY SET ASIDE FOR THE NEXT COUPLE OF YEARS.

BUT THEN THAT CAPACITY, BECAUSE OF THAT FINANCING AND TAKING CARE OF THAT MOUNTAIN OF FUTURE PAYMENTS GOES TO ASSURE OUR MERITS IN THE LONG RUN.

THAT WAS WHAT WE DID FOR THAT SAVINGS OF DEBT PAYMENTS VERSUS ANNUAL PAYMENTS.

IN ADDITION, WE DO HAVE A CONTINGENCY RESERVE FUND OF ABOUT 14 MILLION TO MITIGATE IMPACTS OF THE PENSION PLAN IF THEY CHANGE ACTUARIAL ASSUMPTIONS IF THEY HAVE A BAD YEAR IN THE MARKET. WE HAVE FUNDING TO KEEP US AT THAT 100 PERCENT FUNDED RATIO, AND THAT'LL BE RESERVED UNTIL WE CHANGE AN ORDINANCE OR ALL THOSE LIABILITIES ARE PAID OFF.

EXCELLENT. OVER 100 PERCENT FUNDED.

YES, WE ARE CORRECT, YOU GOT ONE HUNDRED AND SIX PERCENT FUNDED RIGHT NOW.

AWESOME. THE OTHER QUESTION I HAD IS THE STATE ASSESSMENT FOR MINIMUM WAGE.

HOW MUCH HAVE WE SET ASIDE? I MEAN, WE WE PLANNED FOR THIS LAST YEAR AND IT DIDN'T COME ABOUT.

DO WE ALREADY HAVE THAT? SO THAT WAY, IT'S, YOU KNOW, THE FIRST YEAR, IF IT DOES HAPPEN, WE WE HAVE THAT SET ASIDE ALREADY FROM YEARS PRIOR OR BECAUSE, YOU KNOW, WE HAVE THE ONE POINT ONE M.

BUT JUST WONDERING HOW MUCH WAS ALREADY SET ASIDE FROM LAST YEAR FOR THAT PURPOSE.

I WILL LOOK IT UP, BUT I BELIEVE WE HAVE ONE POINT TWO MILLION FOR THIS YEAR'S ASSESSMENT, BUT IT MAY BE HIGHER.

I WILL FIND THAT NUMBER FOR YOU.

OK. SORRY, DID YOU HAVE THAT QUICKER? I DON'T HAVE THAT OFF. I WAS GOING TO SAY ONE POINT TWO, SO I BET YOU'RE PRETTY CLOSE.

BUT I DON'T HAVE THAT RIGHT IN FRONT OF ME AT THE MOMENT.

ONE POINT THREE MILLION THERE, I FOUND IT.

SEE YOU DO HAVE YOUR UTILITY BELT.

ALL RIGHT, THANK YOU. MY MOUTH IS REALLY FAST.

ANY OTHER QUESTIONS? ALL RIGHT. IF ANYBODY.

OH, GO AHEAD, HEIDI. I WAS JUST GOING TO SAY THANK YOU.

ALL RIGHT. WELL, IF ANYBODY'S FEELING BETTER AFTER THAT SECTION, IT IS IN PART BECAUSE OF SOME OF THE NEWS, BUT ALSO BECAUSE CELEBRATING WINS LIKE THAT, LIKE, HEY, THIS IS FUNDED AND YOU KNOW, HERE'S WHERE WE'RE AT.

[01:30:01]

IT'S CAN ACTUALLY MAKE YOU FEEL BETTER AND LOWER STRESS LEVELS.

SO AGAIN, JUST KIND OF PAYING ATTENTION AS WE KIND OF EBB AND FLOW THROUGH THE DAY.

TAKE ADVANTAGE OF SOME OF THOSE TO REALLY HELP US KIND OF STAY ON TRACK AND IN THE RIGHT MINDSET. ALL RIGHT.

SO NEXT UP, WE HAVE THE DREAM CREW COMING UP WITH GREG GENIE BRANDY, AND I'M NOT SURE WHO OUR EAC REP IS.

SO SORRY FOR NOT HAVING THAT NAME HANDY, BUT I KNOW GREG WILL GET YOU INTRODUCED, BUT WE'RE GOING TO TALK ABOUT INVESTING IN EMPLOYEES AND HOW IMPORTANT THAT IS AND WHAT WE'RE DOING FOR THAT. GREG.

THANK YOU. WE DO HAVE A TEAM APPROACH ON THIS AND FORGIVE ME, I KNOW WE'VE BEEN STRATEGIZING, BUT WHO'S KICKING THIS OFF? I WAS GOING TO KICK IT OFF, GREG, GOOD, BRANDY, EVERYBODY, THIS IS BRANDY.

GO FOR IT. GOOD MORNING, MAYOR, VICE MAYOR AND COUNCIL BRANDY SUTA, SERVING AS THE CITY'S INTERIM HUMAN RESOURCE AND RISK MANAGEMENT DIRECTOR.

SO THE NEXT PART OF OUR PRESENTATION IS GOING TO BE A SMALL GROUP PRESENTATION, STARTING OFF WITH GREG AND JEANNIE TALKING ABOUT RECRUITMENT, RETENTION CHALLENGES, SUCCESSES AND STRATEGIES GOING FORWARD FOLLOWED WITH HEIDI HANSEN AND HOW HER AND HER AMAZING TEAM ARE ASSISTING WITH RECRUITMENT.

AND THEN JEANNIE AND I WILL THEN BE PRESENTING ON BENEFIT UPDATES COMPENSATION RECOMMENDATIONS FOLLOWED BY JARED JARED MOTASSADEQ AS THE EAC CO-CHAIR, PROVIDING EAC BENEFITS AND COMPENSATION RECOMMENDATIONS FOR THE FISCAL YEAR 2023 BUDGET.

SO RICK, IF YOU'LL SLIDE TO THE NEXT ONE MORE AND I WILL TURN IT OVER TO JEANNIE AND GREG. THANK YOU.

GREAT. WE HAVE JEANNIE WITH US.

JEANNIE HAS BEEN JEANNIE GALLAGHER HAS BEEN SERVING AS A CONSULTANT FOR US AND WILL CONTINUE TO DO SO AS SHE IS NOW JOIN HER RETIREMENT IN SOME FASHION IN FLORIDA.

BUT YOU KNOW, WE'RE TAKING A GOOD DEAL OF HER TIME.

JEANNIE, I'LL LET YOU GET THIS STARTED.

I'M GOING TO INVITE YOU TO TRY TO USE THE WORD ACTUARIAL SOMEWHERE IN YOUR PRESENTATION.

IF YOU'RE ABLE TO PULL THAT OFF, I THINK WE WOULD ALL ENJOY IT.

THANKS. ALL RIGHT, WELL, GOOD DAY, MAYOR AND COUNCIL JEANNIE GALLAGHER, I AM GOING TO BE HARD PRESSED TO USE THE TERM ACTUARIAL WITHOUT THAT UTILITY BELT, BUT I AM GOING TO DO MY BEST.

SO WE WANTED TO JUST KICK THIS OFF WITH, I GUESS, SETTING SOME FRAMEWORK FOR OUR COMMITMENT TO THE PRIORITIZATION OF OUR EMPLOYEES AND REALLY THE REALITIES THAT WE FACE ECONOMICALLY ACROSS THE COUNTRY, BUT SPECIFICALLY HERE IN FLAGSTAFF.

SO I REALLY APPRECIATE HEIDI'S LITTLE DOSE OF DOPAMINE BECAUSE WE HAVE SOME RATHER STARTLING NUMBERS HERE THAT THAT WE WANT TO SHARE.

THE GREAT RESIGNATION CONTINUES.

THE CITY OF FLAGSTAFF CALENDAR YEAR TURNOVER FOR 2021 WAS ALMOST 25 PERCENT.

COUNCIL THIS DOES NOT INCLUDE TEMPORARY EMPLOYEES.

WE FEEL IT.

WE KNOW IT.

IT'S NOT DIFFERENT THAN WHAT OUR COMPETITORS AND OTHER TYPES OF ORGANIZATIONS ARE EXPERIENCING, BUT IT IS PAINFUL NONETHELESS.

IN ADDITION, THE CITY OF FLAGSTAFF COST OF LIVING INDEX IS NOW ONE HUNDRED AND FOURTEEN POINT NINE AS OF THE LATEST PUBLISHED REPORT.

IT CONTINUES TO INCH UP FOR GRANTED.

THE ENTIRE COUNTRY IS EXPERIENCING HYPERINFLATION.

BUT OUR COST OF LIVING INDEX CONTINUES TO OUTPACE VIRTUALLY ANYWHERE IN ARIZONA RIGHT NOW, INCLUDING THE METRO AREA.

WE WERE MUCH CLOSER TO THEM IN OUR TOTAL INDEX A COUPLE OF YEARS AGO, BUT WE ARE OUTPACING THEM NOW.

THEY ARE STILL HOVERING AT AROUND 111 PERCENT IN THE METRO.

SO WE ARE EDGING ABOVE THAT.

MUCH OF THAT DRIVEN DOESN'T NEED TO BE SAID, BUT I WILL SAY ABOUT FIVE STEPS HOUSING SHORTAGE AND OUR COST OF LIVING FOR HOUSING HERE IN FLAGSTAFF.

OUR POLICE OFFICER AND DISPATCH RECRUITMENT AND RETENTION AGAIN, A NATIONAL CONCERN, BUT IT DOESN'T FEEL ANY BETTER TO KNOW THAT WE'RE IN THE SAME BOAT WITH A LOT OF OTHERS.

WE WOULD LIKE TO BE NOT IN THAT BOAT, BUT WE ARE, AND THOSE STRUGGLES DEFINITELY

[01:35:01]

WE KNOW THAT OUR CITY ENGINEER, OUR BELOVED RICK BARRETT, HAS ANNOUNCED HIS RETIREMENT THIS YEAR. WE NOW HAVE A DEPUTY CITY MANAGER POSITION THAT IS VACANT AND WE OF COURSE, HAVE A INTERIM IN OUR WATER SERVICES DIRECTOR.

SO THOSE STRUGGLES ARE VERY REAL POSITIONS REQUIRING COMMERCIAL DRIVER'S LICENSES NOT GOING TO GET INTO AND ABOUT THE TRUCKERS.

BUT FRANKLY, IF YOU HAVE A CDL, THERE'S A LOT OF OPPORTUNITY OUT THERE AND THERE'S A LOT OF OPPORTUNITY FOR SELF-EMPLOYMENT AND NOT BE NECESSARILY ATTACHED TO AN EMPLOYER.

AND THEN, FRANKLY, EVERYTHING ENTRY LEVEL AND BY SAYING ENTRY LEVEL, I AM TALKING ABOUT EVERYTHING UP TO, YOU KNOW, $20 AN HOUR, FOLKS, BECAUSE THAT'S WHAT THE COMPETITION IS SCRABBLING FOR OUT THERE TO TRY TO FILL ALL OF THESE ENTRY-LEVEL POSITIONS.

AND SO WE ARE COMPETING WITH EVERY OTHER ENTITY OUT THERE FOR WORKERS IN THOSE LEVELS OF POSITIONS, AND THAT ENCOMPASSES DOZENS AND DOZENS OF OUR POSITIONS TO FINISH UP JUST A LITTLE BIT OF DATA.

OUR TOTAL VACANCIES, AS OF WHEN I COLLECTED THIS DATA A DAY OR TWO AGO OR 130.

THAT DOES INCLUDE OUR TEMPORARY VACANCIES, BUT THAT IS A HIGH DEMAND TO OUR RECRUITMENT TEAM. OUR RECRUITMENT TEAM FOLKS HIRED 290 EMPLOYEES IN FISCAL YEAR 21.

THAT'S INCLUSIVE OF REGULAR AND TEMP, WHETHER IT LOOKS LIKE A BRIGHT SPOT OR NOT.

OUR AVERAGE LENGTHS TO FILL IS ACTUALLY 66 DAYS.

THAT SEEMS LIKE A REALLY LONG TIME.

HOWEVER, BASED ON NEO GOV, WE'RE OUTPACING A LOT OF OUR COMPETITORS.

SO KUDOS.

TO OUR RECRUITMENT TEAM AND OUR HIRING MANAGERS, WE'RE PUTTING OUR BEST FOOT OUT THERE AND OUR STATISTICS ARE LOOKING BETTER THAN SOME OTHERS.

GREG, ANYTHING TO ADD ON THIS BEFORE WE MOVE TO THAT NEXT SLIDE? ONCE YOU GO AHEAD AND GO TO THE NEXT SLIDE, I'LL PROBABLY ADD IN A LITTLE BIT THERE, BUT YEAH, AND THANKS FOR THAT SUMMARY, JEANNIE.

YOU BET. WELL, AND JEANNIE, JUST JUST BEFORE YOU GO ON, MAYOR DEASY JUST ASKED IN THE CHAT. WE STILL HAVE THE 60 DAY POLICY BEFORE HIRE, RIGHT? WE HAVE THE 60 DAY SWEEP IN THE GENERAL FUND.

EXCELLENT, THANK YOU. JUST WANTED TO POINT THAT OUT 66 DAYS, THAT'S ONLY SIX DAYS AFTER THE EARLIEST WE COULD HIRE, SO FINE WORK ON THAT FRONT TEAM.

THEY THEY'RE PHENOMENAL.

SO SUCCESSES AND STRATEGIES, WE WANT A LITTLE DOPAMINE OF OUR OWN.

WE ARE DOING OUR BEST TO RAMP UP RECOGNITION AND EMPLOYEE ENGAGEMENT.

CHAMPIONS IS JUST REALLY, REALLY WORKING HARD TO TO WORK ON INVOLVED ACTIVITIES.

CLEARLY, COVID WITH EVERYONE NOT BEING IN THE WORKPLACE OR ABLE TO HAVE GET TOGETHER PARTIES AND THINGS LIKE THAT IS AS A CHALLENGE, BUT THEY'RE DOING THEIR BEST.

WE DID JUST GRANT ONE WEEK, ONE WEEK BANK OF PUBLIC HEALTH EMERGENCY LEAVE FOR ALL STAFF.

THIS IS IN RESPONSE TO THE ONGOING ABSENCES THAT STAFF ARE FINDING NECESSARY DUE TO A MYRIAD OF ISSUES AROUND COVID.

SOME HAVE DEPLETED THEIR BANKS.

OTHERS HAVE NOT.

BUT THIS IS AN OPPORTUNITY FOR THEM TO NOT NEED TO DIG IN, POSSIBLY TO THEIR OWN VACATION AND AND LEAVE TIME THAT THEY NEED FOR WORK-LIFE BALANCE TO MANAGE SOME OF THE COVID RELATED ABSENCES.

A COMPENSATION PLAN WITH THE COMMITMENT TO MERIT AND AND TATTERS ASSURANCE THERE ON FUNDING IS A HUGE, ONGOING WIN.

WE'VE PUT SOME TEMPORARY LIFE SUPPORT, I WOULD CALL IT.

I WOULDN'T CALL IT A BAND-AID, I WOULD DEFINITELY CALL IT LIFE SUPPORT.

IN DISPATCH, WITH TEMPORARY INCREASES IN WAGES INCREASES TO THEIR OVERTIME RATES, BONUSES FOR RADIO SIGN OFF.

WE ARE MAKING HEADWAY.

WE DO HAVE.

WE DO STILL HAVE FIVE VACANCIES.

WE HAVE A NUMBER OF PEOPLE IN TRAINING, BUT IT'S LOOKING BETTER AND THEY CAN ONLY HANDLE

[01:40:04]

SO WE'RE DOING OUR BEST TO HOLD ON TO TO THOSE GREAT HIRES THAT THEY'RE MAKING.

WE IMPROVED. YES, WE IMPROVED OUR POLICE OFFICERS, SIGN ON AND EMPLOYEE REFERRAL BONUSES.

WE'VE GOT SEVERAL INDIVIDUALS IN ACTING OR INTERIM PROMOTION TO COVER VACANCIES, AND THEY'RE DOING A YEOMAN'S JOB IN IN ADDITION TO THEIR WORK.

I THINK GREG WILL PROBABLY SPEAK A LITTLE BIT MORE TO THIS.

WE ARE LOOKING FOR SOME EXTERNAL RECRUITMENT SUPPORT FOR SOME OF THOSE DIRECTOR AND CITY MANAGER OFFICE LEVEL POSITIONS THAT WE'RE COMPETING.

WE'RE JUST COMPETING WITH EVERYONE OUT THERE TO FILL THOSE ADDITIONAL RESOURCES FOR THE RECRUITMENT TEAM, AND YOU'RE GOING TO SEE SOME AMAZING SUPPORT THAT'S BEING PROVIDED BY OUR ECONOMIC VITALITY GROUP IN MARKETING THE CITY AS A GREAT PLACE TO LIVE AND WORK.

THANKS, JEANNIE. I WILL ADD TO A COUPLE OF YOUR COMMENTS.

THIS WAS THIS IS A VERY GOOD AND IMPORTANT DISCUSSION, AND WHILE THERE'S A BIT OF A DOSE OF REALITY HERE, YOU KNOW, IS KIND OF FOLLOWING UP ON RICK TADDER, YOU KNOW, DISCUSSION ABOUT REVENUES AND EVERYTHING, ALL THE ALL THE POSITIVE THINGS THAT ARE HAPPENING.

YOU KNOW, THIS IS ONE THING THAT KIND OF BRINGS US A LITTLE BIT IN A DIFFERENT DIRECTION AS WE'RE WE'RE TALKING ABOUT THE HEALTH OF OUR ORGANIZATION AND WHERE WE ARE.

THERE'S BEEN SO MANY ACCOMPLISHMENTS OVER OVER TIME AND JEANNIE'S BEEN AT THE HELM OF SOME OF THOSE. AND, YOU KNOW, GETTING THE COMP PLAN IMPLEMENTED, YOU KNOW, GETTING THROUGH COVID IN THE WAY.

AND THAT'S OF COURSE, A WORK IN PROGRESS, THE REMOTE WORKING THAT THE EMERGENCY LEAVE PAY THAT HAS BEEN INSTITUTED AND REINSTITUTED RECENTLY.

ALL OF THESE THINGS ARE QUITE POSITIVE.

OH, IN THE PREMIUM PAY THAT JEANNIE ALLUDED TO WITH OUR DISPATCH AND SWORN OFFICERS? ABSOLUTELY CRITICAL.

BUT AS HARD AS WE'RE TRYING, WE'RE, YOU KNOW, WE'RE JUST SEEING LITTLE PROGRESS, BABY STEPS AND I CRINGE AT THE THOUGHT OF THE CONDITION WE WOULD BE IN IF WE HAD NOT TAKEN SOME OF THE MEASURES THAT WE HAVE.

I DO FEEL WE'RE PROBABLY IN AS GOOD OF A PLACE AS WE COULD BE BECAUSE THIS IS A PHENOMENA THAT FRANKLY IS OCCURRING THROUGHOUT THE COUNTRY.

FLAGSTAFF IS NO EXCEPTION.

WITH RESPECT THAN TO PREMIUM PAY, I WILL NOTE THAT BUDGET TEAM HAS HAD A LOT OF DISCUSSION ON THIS. THE COUNCIL HAS WAITED ON IT.

WE ARE GRATEFUL FOR COUNCIL'S DIRECTION.

WE'VE IMPLEMENTED THAT PREMIUM PAY.

IT BRINGS US TO THE END OF THIS FISCAL YEAR, WHICH IS JUNE 30TH.

WE WILL CONTINUE TO REPORT ON THAT BECAUSE THAT IS A ONE TIME THING.

BUT WE'RE WE'RE NOT OUT OF THE WOODS.

YOU KNOW, WE JUST WE JUST BOUGHT SOME TIME ON THAT.

SO STAY TUNED AS WE CONTINUE TO HAVE THAT DISCUSSION, AS JEANIE MENTIONED.

WE ARE SEEING SOME PROGRESS, ESPECIALLY WITH DISPATCH, AND THAT THAT'S A SIGH OF RELIEF, BUT THEY ARE STILL GREATLY UNDER RESOURCED, AS ARE MANY OF OUR DIVISIONS THROUGHOUT THE ORGANIZATION. IT'S A GENERAL STATEMENT TO MAKE.

WE ARE UNDERSTAFFED, NOT BECAUSE OF BUDGETARY CONSTRAINTS AND OTHER THINGS, BECAUSE WE ARE HAVING A HARD TIME FINDING EMPLOYEES ON THAT TOPIC IN SPECIFIC TO THE DIVISION DIRECTOR VACANCIES.

WE HAVE BEEN HAVING COMMUNICATIONS WITH POTENTIAL PROFESSIONAL RECRUITERS.

PATRICK BROWN, THANK YOU SO MUCH, PATRICK, FOR YOUR YOUR HELP.

PATRICK AND I AND OTHERS HAVE BEEN BUSY REACHING OUT.

I WANT TO SHARE WITH YOU.

WE'RE HAVING SOME DIFFICULTY LANDING A RECRUITER, JUST LIKE WE'RE HAVING DIFFICULTY RECRUITING EMPLOYEES.

I GUESS, SUFFICE IT TO SAY, THE RECRUITERS ARE VERY BUSY FOR THE EXACT SAME REASON THAT WE'RE LOOKING. WE WILL GO OUT WITH A FORMAL PROCUREMENT PROCESS TO BRING ON A RECRUITMENT SERVICE THAT WILL LIKELY HELP THE CITY FOR THE NEXT FIVE YEARS OR SO.

WE NEED TO GO THROUGH THAT PROCESS, AND WE THINK WE WE DON'T THINK WE WOULD LIKE TO UTILIZE PROFESSIONAL RECRUITMENT ON THESE DIVISION HEAD POSITIONS, DIVISION DIRECTOR POSITIONS. CERTAINLY THE SOON TO BE VACANT DEPUTY CITY MANAGER POSITION.

WE NEED TO CAST A WIDE NET.

WE NEED TO GO PRO ON THIS AND STAY COMPETITIVE.

IT'S A IT'S A PROCESS THAT TAKES TIME AND MONEY, BUT IT'S AN INVESTMENT THAT WE CANNOT IGNORE. SO STAY TUNED ON THAT.

[01:45:04]

AND AGAIN, I'M THANKFUL FOR PATRICK AND HIS ASSISTANCE ON THIS.

NOW SHIFTING GEARS TO WHAT WE'VE BEEN DOING INTERNALLY.

HEY, GREG. YEAH.

YOU'VE GOT MAYOR DEASY HAS HIS HAND RAISED.

OH, AND WE ALSO HAVE A COMMENT OVER THE CHAT.

GREAT. MAYOR GOES FIRST.

YES, THANK YOU.

I'M JUST WONDERING WHAT THE COMPARISON FOR THE VACANCIES AND TURN AROUND IS COMPARED TO A TYPICAL YEAR OR TWO YEARS AGO.

I MEAN, WE ALWAYS HAVE VACANCIES, AND I KNOW IT'S THIS IS A SERIOUS, SERIOUS PROBLEM FOR US. I'M JUST KIND OF CURIOUS WHAT CAN WE EXPECT IF WE GET BACK TO A MORE NORMAL TIME? YEAH, VERY GOOD QUESTION, MAYOR.

THANK YOU. JEN CAPUTO OR SOMEBODY IN HR WHO'S FAMILIAR WITH THIS, CAN YOU JUMP IN AND ATTEMPT A RESPONSE TO THAT? HI, GREG, THANK YOU, MAYOR, FOR THAT QUESTION, THIS IS JEANNIE.

I WILL PUT OUR TURNOVER, OUR ANNUAL TURNOVER FOR THE LAST THREE YEARS OR SO INTO THE CHAT FOR EVERYONE TO SEE.

AS FAR AS AVERAGE LENGTH TO FILL, WE'VE NOT HAD ANY YOGA FOR AN EXTENDED PERIOD OF TIME.

SO I DON'T KNOW IF THOSE WERE CALCULATED MANUALLY, BUT I CAN DEFINITELY GIVE YOU THAT TURNOVER RATES INTO THE CHAT.

THANK YOU. AND ALSO THE AVERAGE NUMBER OF VACANCIES, THE TOTAL VACANCIES AS WELL, IF YOU IF YOU HAVE THAT DATA. SO I APPRECIATE.

THANK YOU FOR THE QUESTION.

LOOKS LIKE ALSO THE VICE MAYOR HAS A COMMENT AND THEN COUNCIL MEMBER SWEET.

THANK YOU. AND I KNOW THAT ALL OF TEAM FLAGSTAFF SHARES THIS ETHIC, BUT I JUST WANT TO KEEP THIS POINT TOP OF MIND WHEN WE'RE RECRUITING TO BE LOOKING FOR RECRUITERS WITH A PROVEN TRACK RECORD OF DIVERSITY IN HIRING.

ABSOLUTELY. GREAT COMMENT, AND THANK YOU FOR MAKING IT, YES.

COUNCIL MEMBER SWEET. UM, FIRST OFF, I JUST WANT TO THANK THE TEAM FOR TACKLING THIS, THIS PROBLEM, AND YOU'RE DOING A GREAT JOB AND I FEEL FOR WHAT'S GOING ON.

SO KEEP UP THE GOOD WORK.

DON'T LOSE FAITH THAT WE'LL GET THIS ALL SORTED OUT.

MY QUESTION IS FOR JEANNIE.

FOR THOSE WATCHING WHO MAY BE LOOKING FOR A JOB, WHAT IS THE BEST WAY FOR THEM TO SEE ALL OF OUR POSITIONS OPEN AND THROW IN AN APPLICATION? THANK YOU FOR THAT QUESTION, SO THEY CAN GO TO THE CITY'S WEBSITE.

THEY WILL FIND A LINK TO OUR CAREERS PAGE.

IT IS AN ONLINE APPLICATION PROCESS, DOES NOT REQUIRE ANY TYPE OF VISIT TO CITY HALL.

AND WHAT'S REALLY COOL NOW THAT WE HAVE AN ONLINE PLATFORM INSTEAD OF A PAPER PLATFORM IS AN APPLICANT CAN APPLY FOR MULTIPLE POSITIONS FOR WHICH THEY'RE QUALIFIED FOR THE SAME TIME. ONCE THEY PUT THEIR APPLICATION IN, THEY CAN GO IN AND UPDATE IT.

IF THEY HAVE NEW INFORMATION TO ADD NEW SKILLS, NEW QUALIFICATIONS, THEY CAN LINK IT TO ANOTHER VACANCY THAT BECOMES AVAILABLE ONCE THEY'VE APPLIED AND EVEN COOLER, THEY CAN SET UP A WATCH LIST, SO THE SYSTEM WILL NOTIFY THEM IF SOMETHING THAT'S A SPECIFIC AREA OF INTEREST TO THEM BECOMES AVAILABLE SO THAT THEY CAN TAKE A LOOK AT IT AND ATTACH THEIR APPLICATION TO IT IF THEY'RE INTERESTED.

OK. I HOPE THAT THERE ARE SOME OUT THERE WATCHING WHO CAN FOLLOW ALL OF THAT AND GET YOUR THOUGHTS TO THE CITY AND APPLY FOR SOME JOBS, AND THANK YOU, JEANNIE, FOR ALL OF YOUR HARD WORK. WELL, YOU'RE WELCOME.

AND BY THE WAY, IF THEY NEED HELP IN ANY WAY, I KNOW THAT OUR LIBRARY STAFF, BECAUSE WE HAVE THE AVAILABLE COMMUNITY COMPUTERS THERE ARE VERY GOOD AT HELPING INDIVIDUALS FIND WHAT THEY'RE LOOKING FOR AND AND GET ON TO THE CITY TO APPLY AND THEY CAN ABSOLUTELY CONTACT H.R.. WE ARE OPEN IN CITY HALL DURING OPEN HOURS AND WE ARE MORE THAN HAPPY TO HELP THEM IN ANY WAY THAT WE CAN.

SO THANK YOU, THANK YOU FOR ALL OF THE INFO.

YOU BET. NICOLE, YOU'RE MUTED.

[01:50:06]

ALL RIGHT. WE GOT A COUPLE IN THE CHAT, COUNCIL MEMBER SHIMONI AND THEN COUNCIL MEMBER SALAS. THANK YOU, NICOLE, AND HI, JEANIE.

SO GOOD TO HAVE YOU WITH US AND APPRECIATE YOUR ONGOING SUPPORT.

FOR TEAM FLAG THROUGH THESE CHALLENGING TIMES AND CITY MANAGER, OF COURSE, SAME TO YOU AND ALL THOSE ON OUR TEAM.

QUICK QUESTION, TWO QUESTIONS AND COMMENTS.

I GUESS I'M WONDERING WHAT THE OUTREACH IN REGARDS TO THE JOBS AVAILABLE AT THE CITY.

I DID SEE AN EMAIL, I THINK, A WEEK AGO THAT SAID LIKE THIS IS LIKE WE WERE LOOKING INTERNALLY FIRST BEFORE WE MADE IT PUBLIC.

IT JUST MADE ME THINK ABOUT THAT PUBLIC EFFORT.

AND I KNOW THAT WE POST TO SOCIAL MEDIA AT TIMES ABOUT VACANCIES.

BUT I DO WONDER IF WE'RE REACHING THE GREATER POPULATION WITH OUR VACANCIES AND PROMOTING WORKING FOR TEAM FLAG TO THE BEST OF OUR ABILITY.

I THINK, GREG, YOU HAD MENTIONED THAT YOU'RE GOING TO BE WORKING ON SOME VIDEOS AND I AM STOKED ABOUT THAT.

IT'S VERY EXCITING FOR RECRUITING.

I DO WONDER IF WE SHOULD BE ALSO LOOKING TO DO MULTILINGUAL, REALLY FOCUSING ON DIVERSITY BECAUSE WE HAVE SUCH A GREAT COMMUNITY AND AND IT IS AN HONOR AND A GREAT EXPERIENCE TO WORK FOR TEAM FLAG.

AND SO I JUST I JUST WANTED TO MAKE THAT POINT.

AND I KNOW YOU'RE ALREADY THINKING ABOUT THOSE THINGS AS WELL.

AND THEN SECONDLY, I'M GOING TO CIRCLE BACK TO SOMETHING THAT I WOULD BRING UP LIKE A BROKEN RECORD MY FRESHMAN YEAR ON COUNCIL.

AS I'M WINDING DOWN MY TERM HERE, I MIGHT AS WELL BOOKEND IT AND BRING UP THE VALUE OF APPRENTICESHIP AND INTERNS.

I THINK ALL OF YOU ON THE CALL WILL RECALL HOW I KEPT BRINGING THAT UP AGAIN AND AGAIN AND AGAIN, AND I HAVEN'T FORGOTTEN ABOUT IT.

I JUST BACKED OFF A LITTLE BIT BECAUSE OF HOW MUCH WORK THAT TAKES, BUT CREATING THAT TRUE PIPELINE TO WORKING FOR THE CITY.

I THINK BIGGER PICTURE WILL HELP US BE MORE RESILIENT.

CITY MANAGER AND I KNOW WE HAVE A LOT OF EMERGENCIES RIGHT NOW TO FULFILL AS A TOP PRIORITY, BUT JUST WANTING TO PLANT THAT SEED AGAIN AND AND SUPPORT THE IDEA OF WORKING TOWARDS THAT GREATER PIPELINE, I DON'T KNOW IF THAT'S THIS YEAR OR IN YEARS TO COME.

I'M GOING TO GUESS IT'S NOT THIS YEAR, GIVEN HOW CHALLENGING THINGS ARE RIGHT NOW, BUT JUST WANTED TO EXPRESS THAT IMPORTANCE, IN MY OPINION REGARDING THAT, THAT GETTING THE YOUTH INVOLVED FROM A YOUNG AGE, BECAUSE I THINK THAT WOULD REALLY RESULT WITH A LOT OF SUCCESS. THANK YOU.

RIGHT. COUNCIL MEMBER SALAS SEEING COUNCIL MEMBER MCCARTHY.

THANK YOU.

YEAH. BEFORE I ASK MY QUESTION, I JUST WANT TO THANK COUNCIL MEMBER SHIMONI MS. FOR HIS FOR HIS COMMENT.

BUT PLEASE DIFFERENTIATE APPRENTICESHIP FROM MENTORSHIP BECAUSE APPRENTICESHIP IS SPECIFIC TO TRADES AND INDUSTRY LIKE, YOU KNOW, LIKE CONSTRUCTION RELATED OR INDUSTRY SPECIFIC, HEALTH CARE RELATED, ENGINEERING RELATED.

SO AND THERE ARE DIFFERENT LEVELS OF APPRENTICESHIP WHERE, FOR EXAMPLE, THE APPRENTICESHIP TRAINING CENTER THAT I'M HELPING TO ESTABLISH AND FLAGSTAFF IS SPECIFIC TO PIPE TRADES. SO IT COVERS FIVE TRADES WELDERS, HIV, ERS AND PIPEFITTERS.

SO, SO DIFFERENT.

THERE'S APPRENTICESHIP IS TOTALLY DIFFERENT FROM INTERNSHIP.

I DO WANT TO ASK OUR OUR ESTEEMED CITY MANAGER AND H.R.

CONSULTANT PAR EXCELLENCE.

COULD YOU GIVE US A BRIEF OVERVIEW ON? EMPLOYER RETENTION AND SUCCESSION PLANNING AND LEADERSHIP CULTIVATION STRATEGY, SO WE COULD KEEP OUR STELLAR TEAM FLAGSTAFF MEMBERS.

DOES SOMEBODY WANT TO TELL ME THAT UNMUTE? GO AHEAD, GREG. THAT WAS A FAKE.

I'M REALLY I'M REALLY NOT MUTED.

THAT WAS TOTALLY FAKE AND IT DIDN'T WORK.

I'M STILL TAKING POINTS AWAY FROM YOU.

YEAH, RIGHT. THANK YOU FOR THE QUESTION.

COUNCIL MEMBER SALAS.

RETENTION IS LIKEWISE AN ISSUE FOR US, PROBABLY NOT AT THE LEVEL OF THE RECRUITMENT CHALLENGES THAT WE'RE HAVING.

AND YOU KNOW, THE GOOD NEWS TO REPORT IS WE'RE OF COURSE SEEING SOME RETIREMENTS AFTER SOME VERY WONDERFUL TENURE WITH THE CITY.

RICK BARRETT COMES TO MIND THERE, BUT MANY OTHERS AS WELL, AND THAT'S JUST PART OF THE THE

[01:55:05]

WE HAVE BUT BUT SPECIFICALLY ON ON RETENTION AND I THINK MORE IN THE REALM OF PUBLIC SAFETY IN POLICE IN PARTICULAR, WE HAVE LOST EMPLOYEES BECAUSE OTHER EMPLOYERS ARE THROWING MORE COMPENSATION ON THE TABLE WE ARE SEEING.

WE HAVE SEEN SOME LOSS OF OUR PATROL OFFICERS GOING UP TO TO THE STATE WHERE THERE'S COMPENSATION, FRANKLY, THAT WE CANNOT COMPETE WITH.

I DON'T WANT TO OVER GENERALIZE THAT AND SAY IT'S AN ISSUE THROUGHOUT THE ORGANIZATION.

I THINK THAT ONE'S A LITTLE BIT MORE SPECIFIC TO CERTAIN COMPONENTS OF THE ORGANIZATION.

BUT IN A TIME WHEN RECRUITMENT IS CHALLENGING, IT'S A NECESSARY OUTCOME.

THAT COMPETITION IS HIGH AMONG THE EMPLOYERS AND THAT IS INDEED THE CASE.

SO WE ARE FOCUSING ON THAT, TRYING TO DO MULTIPLE THINGS AT THE SAME TIME, KEEP OUR EMPLOYEES RETAINED THROUGH IMPORTANT THINGS LIKE COMPENSATION RECOGNITION, YOU KNOW, JUST DOING WHAT WE CAN TO LET OUR EMPLOYEES KNOW JUST HOW MUCH WE VALUE THEM.

AND THEN ALSO IN THE REALM OF RECRUITMENT, WE'RE BEING CREATIVE AND YOU'RE ABOUT TO GET A LITTLE SNIPPET OF THAT AFTER WE HEAR FROM COUNCIL MEMBER MCCARTHY.

SO IT'S RETENTION IS IT IS AN ISSUE, BUT I DON'T THINK IT'S OF THE SAME LEVEL AS RECRUITMENT AT THE MOMENT.

I HOPE THAT HELPS ANSWER YOUR QUESTION.

GREG, I MIGHT JUST ADD AND THANK YOU, COUNCIL MEMBER SALAS.

I MIGHT JUST ADD TO WHAT GREG HAD SAID WITH RESPECT TO LEADERSHIP DEVELOPMENT, WITH RESPECT TO SUCCESSION PLANNING.

CLEARLY, THOSE ARE EFFORTS THAT THAT TAKE RESOURCES AND AND THAT AND MOSTLY TIME, NOT AS MUCH MONEY AS TIME.

HOWEVER, WE'RE WE'RE CONTINUING TO WORK TOWARD THOSE WE WE DID IMPLEMENT OUR NEO GOV LEARN PLATFORM THIS YEAR, WHICH DOES OFFER AN ACCESS TO TO OVER 10000 COURSES THAT CAN BE SELF-DIRECTED FOR EMPLOYEES TO PARTICIPATE IN.

BUT I THINK ANOTHER JUST EXCITING, ALTHOUGH IT'S A SMALL STEP, IS THAT THE HUMAN RESOURCES TEAM COMBO BETWEEN RANDY AND MYSELF AND ALAN KAY, OUR HR MANAGER, HAVE JUST RECENTLY PROPOSED THAT GOING INTO THIS NEXT FISCAL YEAR, WE ADD A COMPONENT TO OUR ANNUAL PERFORMANCE EVALUATION PROCESS.

THIS WILL NOT BE A RATED.

IT WILL NOT CONTRIBUTE TO THE EMPLOYEES RATING, BUT IT WILL BE A PROFESSIONAL DEVELOPMENT SECTION TO ENSURE THAT THAT CONVERSATION IS HELD.

WHAT IS THE EMPLOYEE ASPIRE TO DO? AND WE'RE LOOKING TO ROLL THIS OUT BY MAKING IT A REQUIREMENT FOR EVERYONE THAT'S IN A SUPERVISORY OR ABOVE LEVEL THAT THEIR SUPERVISOR HAS THAT CONVERSATION WITH THEM, HOPEFULLY MORE THAN ONCE A YEAR, BUT DEFINITELY AT THEIR EVALUATION TIME.

AND IT'S NOT ABOUT GOALS.

I WANT TO, YOU KNOW, MAKE SURE THAT WE FINISH THAT BRIDGE THIS YEAR.

THIS IS ABOUT THEIR PROFESSIONAL DEVELOPMENT AND WHAT WE CAN POSSIBLY DO TO PAVE THE WAY TOWARDS THOSE GOALS BY UNDERSTANDING WHAT THEY ARE.

BECAUSE IF WE DON'T HAVE THE CONVERSATION, THEN WE'RE LIKELY NOT FACILITATING IT.

AND MAYBE MORE IMPORTANTLY, I BELIEVE THAT IT SENDS A MESSAGE TO THE EMPLOYEE WE CARE ABOUT YOU. WE WANT YOU TO STAY IN THE CITY OF FLAGSTAFF.

WE WANT YOU TO SPEND YOUR CAREER HERE.

WHAT DOES THAT LOOK LIKE FOR YOU? SO THAT, I THINK, IS A REALLY EXCITING ASPECT COMING FORWARD IN OUR NEXT ITERATION OF THE PERFORM SYSTEM.

SO THANKS. ALL RIGHT.

COUNCIL MEMBER MCCARTHY.

COUNCIL MEMBER, YOUR ON MUTE.

SORRY TO HAVE STARTED THE TREND, BUT WELCOME TO THE CLUB.

YOU KNOW, I THOUGHT OF DOING THAT AS A JOKE AND I DECIDED, NO, THAT'D BE INAPPROPRIATE, THEN I DID IT BY ACCIDENT.

ANYWAY, I HAVE A COUPLE OF COMMENTS AND A QUESTION AND A LOT OF THIS, MY FIRST COUPLE COMMENTS REALLY BACK UP SOME THINGS THAT JEANNIE JUST SAID.

WHAT MR. SHIMONI, MS. SALAS HAD TO SAY ABOUT DIVERSITY, FIRST OF ALL.

AND I JUST WANT TO SAY, I THINK ONE AREA THAT DIVERSITY WHERE WE SHOULD MAKE A DOUBLE UH

[02:00:07]

I THINK GETTING SOME DIVERSITY IN THE POLICE DEPARTMENT WOULD BE EXTREMELY IMPORTANT FOR MANY, MANY REASONS.

THE OTHER THE NEXT THING I'LL TALK ABOUT IS HIRING FROM WITHIN.

I THINK THAT'S SOMETHING THAT IS GOOD FOR THE MORALE OF THOSE THAT GET THE PROMOTION AND ALSO THE OTHER PEOPLE IN THE ORGANIZATION THAT GO, WOW, THERE'S A FUTURE HERE AND A COUPLE THAT COME TO MIND.

AND OBVIOUSLY, IT'S NOT COUNCIL'S BUSINESS TO GET INTO RECRUITMENT OF STAFF.

BUT TWO THAT, REALLY DO COME TO MIND ARE THE WATER DIVISION DIRECTOR AND THE PUBLIC WORKS DIRECTOR. I WOULD HOPE THAT THE STAFF WOULD CONSIDER KEEPING THE PEOPLE THAT ARE IN THOSE POSITIONS NOW AS PERMANENT BECAUSE I MEAN, THOSE ARE JUST TWO EXAMPLES OF EXCELLENT PEOPLE THAT IF THEY'RE IF THEY'RE REALLY GOOD ENOUGH, WHY DO WE NEED TO GO OUT AND RECRUIT? ANYWAY, I'LL LEAVE THAT UP TO YOU, GREG.

BUT JUST PLANTING A SEED AND THEN I DO HAVE A QUESTION.

WHAT IS OUR POLICY CONSIDERING THAT MARIJUANA IS NOW LEGAL FOR RECREATIONAL USES, OF COURSE, WE DON'T WANT PEOPLE ON STAFF USING MARIJUANA WHILE ON DUTY.

BUT IF PEOPLE USE MARIJUANA RECREATIONALLY ON THEIR OWN TIME, DO WE HAVE A POLICY ABOUT ARE WE WILLING TO HIRE PEOPLE LIKE THAT? OR IS THAT EVEN THOUGH IT'S ILLEGAL, LIKE WE'RE NOT GOING THERE? SO JEANNIE OR SOMEONE ELSE, COULD YOU ANSWER THAT? AND THAT'S THE END OF MY QUESTIONS.

THANK YOU. THANK YOU, COUNCIL MEMBER MCCARTHY, I WILL JUMP IN, AND I THINK BOTH KEVIN AS WELL AS PERHAPS MARIA ROBINSON ARE ON AS WELL.

HUMAN RESOURCES, RISK MANAGEMENT AND LEGAL HAVE BEEN WORKING ON OUR DRUG AND ALCOHOL POLICIES AND CANDIDLY OUTSIDE OF THOSE POSITIONS WHERE MARIJUANA USE IS STRICTLY PROHIBITED FOR CDL DRIVERS OF COURSE, THAT'S A FEDERAL MANDATE.

BUT ONE OF THE POLICY QUESTIONS THAT WE WILL BE BRINGING FORWARD IS SHOULD WE BE TESTING FOR MARIJUANA OUTSIDE OF A REASONABLE SUSPICION EVENT AT WORK WHERE OF COURSE WE TEST FOR EVERYTHING, RIGHT? THAT'S THAT'S, YOU KNOW, WOULD BE OUR STANDARD.

THE POLICY ABSOLUTELY STRICTLY STATES THAT EMPLOYERS ARE NOT ALLOWED TO BE IMPAIRED AT WORK PERIOD, PERIOD, PERIOD.

BUT A POLICY QUESTION COMING FORWARD WILL BE WOULD WE ROUTINELY TEST UPON HIGHER ETC.

OR ONLY UPON A REASONABLE SUSPICION? OK, SO THAT WILL BE ADDRESSED IN THE NEXT FEW MONTHS.

AND THE ONLY REASON I BRING IT UP IS SOMEONE CAME TO ME AND ASKED ME WHAT THE CITY POLICY WAS AND I DIDN'T KNOW.

SO IT SOUNDS LIKE WE DON'T HAVE A POLICY, BUT WE'RE GOING TO BE WORKING ON IT VERY SHORTLY. THANK YOU.

YOU'RE WELCOME. AND IT IS VERY CLOSE TO BEING READY TO COME FORWARD, SO IT WILL BE IN SHORT ORDER AND COUNCIL WILL KNOW WHEN THAT HAPPENS.

YOU'LL LET US KNOW IT WILL COME BEFORE YOU.

THANK YOU. YOU BET.

GREAT MAYOR AND THEN COUNCIL MEMBER SHIMONI, YEAH, THANK YOU.

SO I'M WONDERING ABOUT DOES THE THERE'S A LOT OF POSITIONS OUT THERE THAT DON'T SUPPORT VISAS, AND I'M JUST WONDERING AS AN INSTITUTION, DO WE SUPPORT VISAS TO BE ABLE TO LOOK AT MORE INTERNATIONAL INDIVIDUALS WHO MAY BE WANTING TO POTENTIALLY WORK FOR THE CITY? ACTUALLY, YOU KNOW, LET'S EXPAND OUR HORIZONS THAT'S HAPPENING IN HOSPITALS ALL OVER, ET CETERA. SO I'M JUST CURIOUS ABOUT THE POLICY REGARDING WHETHER WE SUPPORT THE VISA PERMITS OR THE. I AM NOT AWARE THAT WE HAVE A PARTICULAR POSITION ON IT EITHER WAY.

AS YOU KNOW, I IMAGINE CAN BE A VERY, VERY LENGTHY ENDEAVOR.

IN ADDITION, THERE ARE KEY INDUSTRY POSITIONS WHERE THE LIKELIHOOD OF BEING APPROVED FOR A VISA APPLICANT ARE MORE LIKELY.

YOU DO HAVE TO DEMONSTRATE THAT THERE'S A PROFOUND LACK OF AVAILABLE RESOURCES IN THE COUNTRY IN ORDER TO IN ORDER TO OBTAIN THOSE.

SO THEY'RE VERY DIFFICULT FOR ANYTHING OUTSIDE OF VERY SPECIFIC TECHNICAL, ENGINEERING

[02:05:06]

BUT I'LL DEFINITELY ADD THAT TO BRANDY AND I'S LIST FOR FURTHER EXPLORATION.

GREAT, THANK YOU, BECAUSE, YOU KNOW, IT'S A NATIONAL ISSUE WITH THE LABOR SHORTAGE, AS WE ALL KNOW AND AT ALL LEVELS, FEDERAL, ET CETERA, I THINK THAT, YOU KNOW, WE REALLY NEED TO EXPAND THE HORIZONS IN THAT REGARD.

SO I APPRECIATE YOU TAKING A LOOK INTO IT.

THANKS. COUNCIL MEMBER SHIMONI, THANK YOU, NICOLE, REALLY QUICK, SO KNOWING THAT I BELIEVE THERE'S A MAJORITY OF COUNSEL WHO IS INTERESTED IN SEEING DIVERSITY AND THE EMPLOYEE WORKFORCE REALLY REPRESENTING THE COMMUNITY THAT WE REPRESENT HERE IN FLAGSTAFF.

I DO WONDER, CITY MANAGER, HOW THIS COUNCIL CAN HELP YOU AND JEANNIE AND OUR TEAM TO TO ENSURE THAT THAT MORE CHALLENGING TASK OF HIRING THE REFLECTIVE POPULATION CAN BE SUCCEEDED OR SUCCESSFUL.

AND I GUESS THAT YOU KNOW MY MIND AND I'M NOT AN EXPERT HERE, SO THE CITY MANAGER AND OTHERS, I'M REALLY CURIOUS TO HEAR WHAT YOUR THOUGHTS ARE ABOUT MAYBE BRINGING IN AN OUTSIDE CONSULTANT THAT CAN HELP LOOK AT OUR HIRING PRACTICES, OUR POLICIES, OBVIOUSLY, WITH THE RECRUITMENT VIDEO MAKING SURE THAT PEOPLE OF COLOR ARE HIGHLIGHTED AND JUST THAT WE'RE REALLY MAKING STRIDES BECAUSE I KNOW THIS IS A CHALLENGING TASK.

AND BUT YET GIVEN OUR STRUGGLES TODAY, I SEE THIS AS SUCH AN OPPORTUNITY AND AT A TIME OF OPPORTUNITY. SO I'M JUST WONDERING CITY MANAGER AND GENIE IF THEY'RE SAYING THIS COUNCIL CAN DO MAYBE THROUGH THE BUDGET PROCESS AND MAYBE ALLOCATING FUNDS TO HELP BRINGING IN ANOTHER SUPPORT MEMBER.

ALTHOUGH I SEE MANTRA, I HEAR YOUR COMMENTS ABOUT STRUGGLES WITH EVEN RECRUITMENT SUPPORT AGENCIES. BUT ANY THOUGHTS ABOUT THAT? IS THAT A GOOD IDEA, DO YOU THINK? OR WHAT ARE YOUR THOUGHTS? WELL, I DON'T HAVE STRONG THOUGHTS ABOUT BRINGING IN AN OUTSIDE CONSULTANT TO.

TO REVIEW OUR APPROACH AND OUR POLICIES, I'M VERY INCLINED TO THINK THAT THE PROBLEM IS NOT WITH OUR POLICIES AND MAY NOT BE WITH OUR RECRUITMENT PRACTICES.

I THINK RIGHT NOW, YOU KNOW, WE'RE AT THE OTHER END OF THE SPECTRUM, WE'RE HAVING A HARD TIME WITH RECRUITMENT ACROSS THE BOARD AND, YOU KNOW, I MEAN, WE WOULD WELCOME.

QUALIFIED CANDIDATES, AS WE ALWAYS WOULD HAVE OF ANY, YOU KNOW, ETHNICITY OR OR, YOU KNOW, AGE, GENDER.

WHAT HAVE YOU? WERE WE ARE CASTING A WIDE NET.

THE PROBLEM RIGHT NOW IS LACK OF INTEREST ACROSS THE BOARD.

I THINK TO THE POINT OF PLACING MORE EMPHASIS ON DIVERSITY, WHICH IS, OF COURSE, WHAT WE WANT TO DO THAT THAT PROBABLY IS SOMETHING WE SHOULD DO ALONG THE WAY, BUT IT'S PROBABLY SOMETHING THAT BECOMES MORE OF A GOAL THAT WE CAN EFFECTUATE WHEN RECRUITMENT STARTS IMPROVING.

IN OTHER WORDS, WHEN WE START SEEING HEALTHY INTEREST, ELEVATED INTEREST IN OUR POSITIONS, RIGHT RIGHT NOW, YOU KNOW, WE'RE JUST TRYING TO GET GENERATE THAT INTEREST FROM FROM ALL SOURCES.

SO THOSE ARE MY INITIAL COMMENTS WE HEAR FROM COUNCIL LOUD AND CLEAR THAT THERE'S AN EMPHASIS UPON DIVERSITY AND YOU KNOW, WE'RE DOING WHAT WE CAN.

BUT RIGHT NOW, OUR OUR CHALLENGES ARE.

ARE. EVERYWHERE WITH ALL DEMOGRAPHICS, WE ARE JUST NOT SEEING THE RECRUITMENT INTEREST THAT WE'D LIKE TO SEE. AND AND THANK YOU, COUNCIL MEMBER SHIMONI.

GREG, IF I COULD ALSO ADD, NEO GOV IS ACTUALLY A FABULOUS TOOL FOR US IN THIS REGARD.

AS A VENDOR, THEY HAVE A HUGE AMOUNTS OF SUPPORT ON DIVERSITY AND INCLUSION, RECRUITMENT STRATEGIES, RESOURCES, ET CETERA.

WE ARE A RELATIVELY NEW ENHANCEMENT TO THEIR SYSTEM IS THAT WE ARE ACTUALLY ABLE TO RUN FILTERS, IF YOU WILL, ON OUR APPLICANT POOLS FOR OUR POSITIONS TO SEE WHAT TYPE OF DIVERSITY WE ARE ATTRACTING INTO A POSITION.

ONE OF THE FOREVER AND ALWAYS DOWNSIDES TO OUR ABILITY IN THAT REGARD IS, I THINK, A POSITIVE AND A NEGATIVE IN THAT CANDIDATES ARE NOT REQUIRED TO PROVIDE ANY OF THAT INFORMATION TO US DURING THEIR APPLICATION PROCESS.

WE OBVIOUSLY DON'T SEE THEM ALL THE WAY UP UNTIL WE INTERVIEW THEM.

[02:10:06]

AND TRADITIONALLY, ABOUT 30 PERCENT OF CANDIDATES WILL PROVIDE THAT UP FRONT AND THE REST DON'T. SO YOUR YOUR DATA IS ONLY AS GOOD AS IT'S AVAILABLE.

AND BUT AGAIN, I THINK OUR VENDOR HAS A LOT OF RESOURCES FOR US TO TAKE ADVANTAGE OF AND AND WE UNDERSTAND THIS AS AN EMPHASIS AND A PRIORITY.

AND ONE LAST QUICK FOLLOW UP REALLY QUICK.

AND I APPRECIATE BOTH OF YOUR COMMENTS.

YOU KNOW, IN THINKING ABOUT OUR EMPLOYEE WORKFORCE AT THE CITY, I CAN IMAGINE A SLIDE THAT SHOWS A PIE CHART WITH A DIFFERENT DIVERSITY OF OUR COMMUNITY AND OUR, YOU KNOW, THE POPULATION WE REPRESENT.

AND THEN A PIE CHART SHOWING THE DIVERSITY OF OUR EMPLOYEES AND MAKING IT OUR GOAL TO STRIVE TOWARDS THAT, YOU KNOW, EQUIVALENCE NOT JUST LOWER LEVELS OF EMPLOYMENT, BUT ALL LEVELS IN HIGHER LEVELS.

BUT MANTRA I HEAR YOU LOUD AND CLEAR IN Q2 AND I APPRECIATE THAT.

AND I GUESS MY ONLY CLOSING COMMENT WOULD JUST BE IN GENERATING THAT, THAT THAT POOL OF SUPPORT FOR APPLICANTS AND ENERGY TO WANT TO WORK FOR THE CITY.

MAYBE WE TAKE SOME EXTRA STRIDES TO ENSURE THAT WE FOCUS IN ON POPULATIONS THAT ARE UNDERREPRESENTED. THANK YOU.

YEAH, THANK YOU FOR THE COMMENTS AND THE DISCUSSION, AND THERE HAVE BEEN SOME HIRINGS IN RECENT TIMES WHERE WE WE'VE HAD SUCCESSES BRINGING IN DIVERSITY, NOT READY TO PULL THE PIE CHART OUT JUST YET, BUT I THINK OVER TIME THAT THAT BECOMES VERY IMPORTANT INFORMATION. BUT I, BUT I WILL ANECDOTALLY TELL YOU THAT I THINK WE'VE HAD SOME SUCCESSES OF LATE. SO STAY TUNED ON THAT.

WELL, IF I MAY, IT'S BEEN A VERY GOOD DISCUSSION, BUT IF I MAY KEEP US MOVING FORWARD.

TALKING ABOUT INTERNAL STRATEGIES, I'M GOING TO HAND THIS ONE OFF TO HEIDI HANSEN, WHOSE TEAM HAS BEEN BUSY, WE'VE BEEN PUTTING OUR RESOURCES TOGETHER ON MULTIPLE FRONTS TO TRY TO FURTHER THIS CAUSE.

AND HEIDI, WHY DON'T YOU SHARE WITH US ALL WHAT YOUR TEAM'S BEEN ABLE TO DO? AT GOOD MORNING, MAYOR, VICE MAYOR, COUNCIL MEMBERS, HEIDI HANSEN, ECONOMIC VITALITY DIRECTOR, I'M HAPPY TO BE HERE TODAY AND HAPPY TO SHARE WHAT WE'RE DOING TO HELP CREATE A CAMPAIGN FOR RECRUITMENT FOR THE CITY OF FLAGSTAFF THAT REALLY SETS US APART FROM OTHERS.

THIS IS JUST GOING TO BE A LITTLE BIT OF A TASTE FOR YOU TODAY, SINCE THERE'S A LOT OF OTHER THINGS TO DISCUSS, BUT I THINK IT WILL EXCITE YOU.

JUST WANT TO LET YOU KNOW YOUR CITY MANAGER IS LISTENING AND WORKING VERY HARD, VERY MUCH WORRIED ABOUT GETTING THINGS FILLED AND ASKED ME TO PUT OUR TEAM TOGETHER TO CREATE THIS CAMPAIGN. I ORIGINALLY WORKED WITH A TEAM OF FIVE TRACY WARD, LAURIE PAPPAS, BARNEY HELMICK AND RALPH SCHMIDT FROM THE ECONOMIC VITALITY DIVISION TO DO THE BEGINNING STAGES OF THIS CAMPAIGN.

AND NOW I'M WORKING WITH A MIGHTY TEAM, A COMMITTEE OF 14.

AND I CAN'T LIST ALL THE NAMES, BUT I WILL TELL YOU THEY'RE FROM DIFFERENT PARTS OF THE DIVISIONS. THERE ARE PEOPLE FROM RECRUITMENT IN H.R.

AND THEY ARE A VERY HELPFUL TEAM.

AND SO I'M VERY EXCITED THAT TO BE WORKING WITH THEM ON GOING AND WHAT YOU'RE SEEING BEFORE YOU IS WHAT WE'RE GOING TO BE DOING TO CREATE AN INWARD AND AN OUTWARD CAMPAIGN.

WHAT I MEAN WHEN I TALK ABOUT INWARD, I'M SAYING.

AND HOW WE WANT TO REACH PEOPLE THAT ACTUALLY LIVE IN FLAGSTAFF THAT ALREADY KNOW ABOUT OUR ENVIRONMENT AND THEN THE OUTWARD IS HOW WE WANT TO GET PEOPLE TO UNDERSTAND THAT COMING TO A JOB AT THE CITY OF FLAGSTAFF IS NOT JUST ABOUT THE POSITION, BUT THE LIVELIHOOD THAT YOU WILL HAVE BY BEING HERE.

SO AS YOU SEE TO THE LEFT, THE FIRST AD THAT YOU SEE SAYS, WE LOVE FLAGSTAFF, YOU LOVE FLAGSTAFF. THIS IS BASICALLY WHAT I WOULD TALK ABOUT AS AN INWARD MARKETING STRATEGY.

SO IT'S BASICALLY SOMEONE THAT WE WILL SERVE AN AD TO EITHER DIGITALLY OR IN PRINT OR ON SOCIAL THAT ACTUALLY PROBABLY LIVES HERE AND THEY ALREADY KNOW ABOUT US.

SO WE'RE BASICALLY SAYING, HEY, GETTING THEIR ATTENTION, THIS IS WHAT WE LOVE.

AND THEN WHAT WE DO IS WE'RE BASICALLY SHOWING THEM OUT, ENJOYING THE ENVIRONMENT, AND THEN WE'RE TALKING ABOUT SOME ASSETS.

SO THE ASSETS THAT WE WANT TO TALK ABOUT ARE THINGS LIKE THAT.

WE HAVE STATE RETIREMENT.

BELIEVE IT OR NOT, A LOT OF PEOPLE DON'T GET THAT IN ANOTHER JOB.

WE ALSO WANT TO TALK ABOUT THAT WE HAVE 11 PAID HOLIDAYS.

THAT IS NO JOKE.

AND THEN SO ON AND SO FORTH.

SO AN INWARD CAMPAIGN PROBABLY DOESN'T NEED US TO TALK ABOUT THE ENVIRONMENT AS MUCH AS WHAT WE CAN GIVE THEM OR AFFORD THEM THAT THEY CAN'T GET AT ANOTHER JOB, THEN WE WANT TO

[02:15:04]

THE MIDDLE AD IS SOMETHING THAT WOULD PROBABLY GO TO A LITTLE BIT MORE OUTWARD FACING.

WE WANT PEOPLE TO KNOW THAT WHEN YOU THINK OF FLAGSTAFF, YOU THINK ABOUT THE COOL ENVIRONMENT. WE'RE A FOUR SEASON CITY.

SO WE DECIDED WE WANT TO TALK ABOUT COOL PEOPLE, COOL MOUNTAIN.

SO BASICALLY IN THAT HEADLINE, WE'RE LETTING THEM KNOW WITH THE WORD CAREERS THAT IT'S A HIRING AD. WE'RE LETTING THEM KNOW THAT THE PEOPLE THAT WORK HERE, WE THINK, ARE PRETTY COOL, AND WE'RE ALSO LETTING THEM KNOW THAT WE ARE NOT YOUR TYPICAL ARIZONA.

AND THEN, OF COURSE, WE'RE GOING TO BE UTILIZING PICTURES AND SCENICS THAT SHOW WHAT YOU WERE JUST TALKING ABOUT THE DIVERSITY OF OUR OF OUR TEAM, AS WELL AS THE DIFFERENT BEAUTIFUL ASSETS AND SCENICS THAT WE WE HAVE IN FLAGSTAFF AGAIN SHOWING THE ASSETS THAT WE CAN AFFORD THEM THIS TIME ON THIS AD.

AND I DON'T KNOW THAT I HAD THEM CHANGED OUT.

RALPH SCHMIDT'S OUR AMAZING CREATIVE DESIGNER.

WE'RE ALSO TALKING ABOUT NOT ONLY THE LIST OF ASSETS THAT WE HAVE FOR THE CITY OF FLAGSTAFF, BUT WE'RE SHOWING THE ASSETS ABOUT THE ENVIRONMENT.

WE'RE TALKING ABOUT THE GREAT OUTDOORS, THE OUTDOORS THAT WE HAVE, WE'RE TALKING ABOUT THE GREAT SCHOOLS, WE'RE TALKING ABOUT THE QUALITY OF LIFE.

AND BASICALLY IT'S JUST A LITTLE BIT OF A CHECKLIST.

WHAT WE WANT THEM TO DO IS TO ACTUALLY GO TO OUR QR CODE, WHICH WILL HAVE A VIDEO AND WE ARE ACTUALLY GOING TO BE CREATING THAT VIDEO FOR THE CITY OF FLAGSTAFF.

I KNOW THAT COUNCIL MEMBER SHIMONI IS ALREADY ON SCREEN.

HAPPY TO SEE THAT YOU'RE CLAPPING.

THAT WILL GIVE THEM A REASON TO LEARN MORE.

AND THEN WE ALSO ARE GOING TO HAVE THEM GO TO A NEW URL FLAGSTAFFCITYCAREERS.COM, SO THAT THEY CAN ACTUALLY GO AND DO HOPEFULLY START APPLYING FOR JOBS.

AND SO WE HAVE THOSE TYPES OF THINGS HAPPENING.

WE ALSO HAVE SOME HEADLINES LIKE BE A BE A PART OF MAKING FLAGSTAFF THRIVE.

JUST SO YOU KNOW, IN THE MARKETING WORLD, YOU HAVE TO LOOK AT WORDS THAT ARE TRENDING, WORDS LIKE THRIVE OR TRENDING.

AND THE WHOLE POINT OF THE MATTER IS IS TO SHOW THAT THIS IS A VERY CLEAN AD, A VERY QUICK ATTENTION GETTING HEADLINE.

WE'RE GOING TO BE VERY STRATEGIC ON THE ASSETS THAT WE SHARE ON THAT.

BUT THE BIG, BIG THING IS WE WANT THEM TO GO, WE WANT THEM TO WATCH THE VIDEO.

BESIDES THIS, THESE ADS, I WANT TO LET YOU KNOW THEY'RE GOING TO BE BESIDES DOING AN OVERARCHING CAMPAIGN WHERE WE'RE GOING TO BE REACHING OUT.

WE'RE GOING TO ACTUALLY BE ABLE TO HAVE A TOOLKIT FOR OUR DIVISION.

SO IF I'M IN FIRE AND CHIEF GAYLORD HAS TO BE RECRUITING SOME, SOME FIRE STAFF, WE CAN ACTUALLY TAILOR THIS TO THEIR RECRUITMENT.

AND EVEN MORE EXCITING THING THAT LORI PAPPAS, OUR MARKETING MEDIA RELATIONS MANAGER, DOES VERY, VERY WELL IS WE HAVE AN ABILITY TO GEO FENCE.

SO IF I KNOW THAT THERE IS AN AIR CONFERENCE GOING ON AND WE'RE STILL LOOKING FOR HR DIRECTOR, WE'RE GOING TO BE ABLE TO GEOFENCE THAT CONFERENCE AND SERVE THEM UP THIS AD, LETTING THEM KNOW WE WOULD LIKE THEM TO APPLY FOR OUR HR DIRECTOR POSITION.

SO THERE'S A LOT OF MOVING PARTS HERE.

THERE'S A LOT OF THINGS GOING ON.

SO BASICALLY I WANTED YOU TO SEE A LITTLE BIT OF WHAT WE'RE DOING.

AND THEN WHAT I'M GOING TO DO BEFORE I SHARE WITH YOU WHAT WE'RE GOING TO BE DOING TO GET ALL OF THIS UNFOLDED.

I HAVE INVITED RALPH SCHMIDT, OUR CREATIVE SERVICES DIRECTOR FOR DISCOVER FLAGSTAFF, WHO PUT ALL OF THIS CREATIVE TOGETHER.

SO AGAIN, HATS OFF TO RALPH.

HE'S GOING TO SHOW YOU AND WHAT WE'RE GOING TO ALSO DO IS PUT THE VIDEO LINK IN THE CHAT.

IN CASE THERE'S AN ISSUE, HE'S GOING TO SHOW YOU THE LATEST POLICE VIDEO THAT WE DID, AND SOMETIMES WE KNOW THESE THINGS LAG.

SO I APOLOGIZE IF THAT HAPPENS TO TO HELP THEM WITH THEIR RECRUITMENT EFFORTS, NOTING THAT WE ARE ACTUALLY GOING TO BE UTILIZING OUR OWN CITY STAFF TO BE PUTTING PUTTING AN OVERARCHING CITY OF FLAGSTAFF VIDEO TOGETHER.

WE'RE ALSO PROBABLY GOING TO BE DOING A SEPARATE FIRE VIDEO AND THEN WE MIGHT EVEN DO SOME FRONTLINE STAFF, THINGS LIKE THAT.

SO WE'RE GOING TO TRY TO SHOW YOU THIS VIDEO IF IT DOESN'T COME OUT GREAT BECAUSE THERE'S A LOT OF PEOPLE ON THIS CALL.

WE ARE GOING TO PUT IT IN THE LINK.

AND THEN WHEN THAT VIDEO IS FINISHED, I WILL I WILL FINISH UP AND SHARE WITH YOU OUR NEXT STEPS AS A COMMITTEE.

[02:20:01]

THIS MOUNTAIN TOWN COULD BE CALLED LOWER HOME.

IMAGINE BEGINNING AN ENDING EVERY DAY WITH THE SCENT OF FRESH PINE AND BEING IN THE ENVIABLE POSITION OF EXPERIENCING FOUR SEASONS.

MY NAME IS DAN MUSCLEMEN, AND I SERVED AS THE CHIEF OF POLICE FOR THE FLAGSTAFF POLICE DEPARTMENT. POLICING AS A PROFESSION WILL DRAW YOU TO FLAGSTAFF AND THE FLAGSTAFF SURROUNDING COMMUNITY.

THE OPPORTUNITIES WILL BE THE REASON YOU STAY.

LOOK. FLAGSTAFF, POLICE DEPARTMENT STAFF, PROFESSIONAL COMMUNITY MEMBERS WHO ARE COMMITTED TO BUILDING PARTNERSHIPS AND SHARED RESPONSIBILITY AND TRUST WITH MEMBERS OF OUR COMMUNITY. STRIVE TO QUALITY OF LIFE FOR BOTH OUR RESIDENTS AND OUR VISITORS.

FLAGSTAFF IS A PLACE WHERE YOU WILL FIND SOMETHING FUN FOR EVERYONE.

SO WHEN YOU'RE NOT ENJOYING THE OUTDOORS, YOU CAN SERVE AS PART OF OUR TEAM TO ENSURE EVERYONE STAYS SAFE.

OUR TEAM LOOKS FORWARD TO SHARING THIS FRESH AIR.

THE COUPONS AND OUR QUALITY OF LIFE.

WE HAVE A DIVERSE TEAM OF PROFESSIONALS HERE TO SUPPORT YOU EVERY STEP OF THE WAY.

WE ALSO OFFER A STEEP PAY PLAN AND FIRST TIME HOMEBUYER ASSISTANCE OF $10000.

POINT IS, WE VALUE YOUR WELL-BEING AND OFFER A WORK LIFE BALANCE THAT'S COMPARABLE TO OTHER CITIES. PLEASE JOIN OUR TEAM.

IT'S SURE TO BE AN ADVENTURE OF A LIFETIME.

IT'S REALLY GOING TO CHANGE NOW.

GO TO FLAGSTAFF.AZ.GOV TO APPLY.

THAT'S FLAGSTAFF.AZ.GOV, THANK YOU, RALPH.

AS YOU CAN SEE, IT DID LAG A LITTLE BIT.

IT'S A LOT MORE EXCITING AND THERE'S ACTUAL MUSIC THAT GOES TOWARD IT OR TO IT.

SO I PUT THE LINK IN THE CHAT, SO I HOPE THAT YOU'LL VIEW THAT ON YOUR OWN AFTER THE RETREAT. AND THEN NEXT SLIDE.

UH, WHAT WE WANTED TO LET YOU KNOW THE NEXT STEPS IS THIS I'M LEADING THIS COMMITTEE OF FOUR 14 AND AGAIN, I WANT TO THANK THEM ALL FOR VOLUNTEERING.

WE ARE PUTTING TOGETHER A MARKETING PLAN.

THE MARKETING PLAN IS CRUCIAL BECAUSE WE HAVE TO DECIDE HOW WE'RE GOING TO PUT THIS OUT AS THE CITY OF FLAGSTAFF RECRUITMENT.

AND THEN, OF COURSE, HOW WE CAN HAVE A TOOLKIT FOR THE DIVISIONS WHEN THEY HAVE SEPARATE RECRUITMENTS. WE'RE ALSO ORGANIZING PHOTOGRAPHY AND VIDEO SERVICES.

SO BASICALLY THE MODELS ARE OUR OWN STAFF.

AND AGAIN, WE ARE LOOKING FOR THE DIVERSITY ELEMENT.

SO I DID SEE COUNCIL MEMBER SHIMONI YOUR COMMENT IN THE CHAT, THE INDIGENOUS, DEFINITELY.

WE ALSO HAVE SOME ADS THAT WE'RE ALREADY USING.

WE'LL BE USING TO SHOW THAT DIVERSITY.

IN OUR VIDEO THAT WE SHOOT, WE ARE GOING TO TRY TO BE AS DIVERSE AS POSSIBLE.

I HOPE THAT YOU KNOW THAT THE CITY OF FLAGSTAFF IS ALWAYS TRY TO BE AS DIVERSE AS POSSIBLE. IT JUST ENDS UP.

SOMETIMES IT DOESN'T HAPPEN THE WAY THAT THE WAY THAT WE WANTED IT TO BE IN THAT ELEMENT, IT'S JUST WHAT IT IS.

IT'S WHO APPLIES AND WE GO WITH THE PEOPLE THAT ARE EXPERIENCED AND THEN WE ARE GOING TO BE REACHING OUT TO THE CITY STAFFS AND THE DIVISIONS TO ASK THEM HOW WE CAN BEST REPRESENT THEIR DIVISION IN THIS VIDEO, NOTING THAT WE CAN'T SHOW EVERYTHING AND THEN WE'LL SHOW SOME OF THAT, SOMETIMES JUST IN OUR PHOTOGRAPHY.

SO YOU'RE GOING TO SEE ADS WHERE YOU MIGHT SEE SOMEBODY IN OUR POLICE, AND I DON'T THINK YOU KNOW THIS FROM THE VIDEO THAT YOU JUST SAW.

IS THAT WE ARE BASICALLY SHOWING OUR POLICE STAFF WORKING AS WELL AS PLAYING.

AND SO WE'RE GOING TO BE DOING THAT IN A LOT OF OUR ADS TO SHOW THAT WE HAVE A GOOD WORK LIFE BALANCE AND THAT THERE'S A REASON WHY PEOPLE VISIT, DISCOVER AND GROW HERE.

SO I JUST WANT YOU TO KNOW THERE'S A LOT MORE COMING DOWN.

WE'LL CONTINUE TO UPDATE YOU AS WE SEND THINGS OUT.

YOU'RE GOING TO BE SEEING STUFF ACTUALLY AND A LOT OF OUR LOCAL MEDIA.

AND THEN THERE'S GOING TO BE A LOT THAT YOU DON'T SEE BECAUSE IT'S GOING TO GO OUTWARD AND WE'RE GOING TO BE RECRUITING THAT WAY.

WE THINK THESE EFFORTS ARE GOING TO HELP.

A LOT CREATES A GREAT IMAGE FOR US.

IT REALLY BRANDS US AND WE'RE EXCITED TO BE DOING THIS AND TO BE ABLE TO PUT OUR STAFF INTO THESE ELEMENTS AND TO SHOW THAT THEY'RE BASICALLY VALUED AND THAT WE APPRECIATE THE WORK THAT THEY'RE DOING.

SO ANY QUESTIONS FOR ME? HAPPY TO ANSWER THOSE NOW.

THANK YOU. COUNCIL MEMBER SHIMONI, DID YOU STILL WANT TO JUMP IN? I DID. AND I'M FEARFUL OF A HAND COMING UP AT ANY MOMENT.

NICOLE, SO I'M ON MY WAY ON EGGSHELLS.

HERE I AM.

JUST MAKE MY QUICK COMMENT.

NICE VIDEO. I REALLY LIKE IT AND I LIKE THE PLAN, HEIDI.

YEAH, I THINK WE HAVE A LOT TO OVERCOME WITH WITH OUR HISTORIC TRAUMA AND OUR JUST SYSTEM

[02:25:05]

I REALLY APPRECIATE COUNCIL MEMBER MCCARTHY POINT ABOUT TRYING TO HIRE DIVERSITY WITHIN OUR POLICE DEPARTMENT AND CHIEF.

I SAW YOUR COMMENT ABOUT STRUGGLES WITH THAT REPRESENTATION AND I APPRECIATE THAT.

I DID. AND SEEING THAT VIDEO HEIDI, MY INITIAL THOUGHT RIGHT AWAY WHEN I SAW SNOWBALL BEING SHOWN WAS THAT IF WE WANT TO GET INDIGENOUS INVOLVEMENT AT ALL IN OUR FUTURE WITH OUR POLICE DEPARTMENT OR WITH OUR CITY, YOU'VE GOT TO BE VERY SENSITIVE ABOUT HOW WE USE MOBILE AND PROMOTION GIVEN THE SENSITIVITY THERE AND THAT RAW NERVE THAT EXISTS IN THAT TENSION. I JUST THINK THAT MAYBE WE SHOULD CONSIDER EXCLUDING SUCH POLITICALLY CHARGED THINGS, ALTHOUGH I KNOW A LOT OF PEOPLE LIKE TO RECREATE THERE, I USED TO RECREATE THERE, BUT I STOPPED A LONG TIME AGO BECAUSE OF THE POLITICS, UNFORTUNATELY.

ANYWAYS, I'LL LEAVE IT THERE.

THANK YOU. A MAYOR COUNCIL MEMBER SHIMONI WOULD LOVE TO TO MAKE A REMARK TO THAT THAT WAS SHARED WITH US WITH OUR LEADERSHIP TEAM AND EXTEND LEADERSHIP TEAM AS WE SHOWED THIS CAMPAIGN AND WE CONTINUE TO GET FEEDBACK.

THIS CAMPAIGN WAS FIRST CREATED AND THEN IT WAS KIND OF EVOLVED WITH THE EFFORTS OF A MIGHTY STAFF THAT THAT GREG HAS.

AND THAT WAS DISCUSSED INTERNALLY.

SO WE WILL DEFINITELY BE VERY CAUTIOUS ON WHAT WE USE IN OUR OVERALL VIDEOS.

I SO APPRECIATE THAT.

ALL RIGHT. ANYBODY ELSE? OK, LET'S MOVE ON TO BENEFITS.

THANK YOU, HEIDI AND GREG AND JEANNIE, JUST SHARING SOME OF THE CHALLENGES WE'RE FACING AS A CITY AND SOME OF OUR OPPORTUNITIES FOR SUCCESS.

THIS IS REALLY GREAT INFORMATION.

MOVING ON TO BENEFITS, SO THE NEXT FEW SLIDES IS GOING TO PROVIDE AN OVERVIEW OF OUR ANTICIPATED BENEFIT CHANGES FOR THE UPCOMING FISCAL YEAR.

AT THIS TIME, WE DON'T HAVE ANY UPDATE ON ANY POTENTIAL CHANGES RELATED TO OUR ELECTED OFFICIALS RETIREMENT PLAN, BUT WE DO NOT ANTICIPATE SIGNIFICANT CHANGES IN THAT RATE.

REGARDING OUR STATE RETIREMENT, OUR ARIZONA STATE RETIREMENT SYSTEM, THOSE RATES ARE DECREASING SLIGHTLY FOR BOTH PENSION AND HEALTH INSURANCE, AS WELL AS OUR LONG TERM DISABILITY TO A RATE OF JUST OVER 12 PERCENT, TWELVE POINT ONE SEVEN PERCENT FOR THE NEXT FISCAL YEAR. THIS WILL RESULT IN A NET SAVINGS TO THE GENERAL FUND OF APPROXIMATELY $50000 FOR OUR PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM, SO WE KNOW ALL OF OUR RATES FOR PSP OR ASK FOR BOTH POLICE AND FIRE ARE GOING DOWN.

WE'RE SEEING THE MOST NOTABLE DECREASES IN OUR TIER ONE AND TIER TWO EMPLOYER RATES.

WE ARE ALSO WE ARE ALSO GOING TO EXPERIENCE RATE DECREASES FOR OUR TIER TWO EMPLOYEES.

SO THEIR RATE IS GOING TO DECREASE FROM ELEVEN POINT SIXTY FIVE TO SEVEN POINT SIXTY FIVE IN THE NEXT FISCAL YEAR, WHICH WILL DIRECTLY BENEFIT THOSE EMPLOYEES AND THEIR NET PAY.

WITH THOSE CHANGES IN THOSE RATES, WE ARE ESTIMATING A NET SAVINGS OF APPROXIMATELY ONE HUNDRED AND NINE THOUSAND DOLLARS FOR POLICE AND ONE HUNDRED AND NINETY SIX THOUSAND FOR FIVE. FOBAR NEXT SLIDE, THANK YOU, RICK.

NOT DISCUSSING INSURANCE BENEFIT CHANGES, WE ARE EXPECTING NO CHANGES IN RATES FOR OUR VISION COVERAGE FOR DENTAL INSURANCE.

WE ARE CURRENTLY PROJECTING A FIVE PERCENT INCREASE WITH AN ESTIMATED COST OF JUST OVER NINETEEN THOUSAND FIVE HUNDRED DOLLARS FOR THE GENERAL FUND FOR MEDICAL INSURANCE.

RATES ARE INCREASING ON AVERAGE FIVE PERCENT, SLIGHTLY MORE FOR OUR BUY UP PLAN AND SLIGHTLY LESS THAN FIVE PERCENT FOR OUR HIGH DEDUCTIBLE HEALTH PLAN.

THE FULL COST OF THIS INCREASE IS ESTIMATED AT THREE HUNDRED AND FORTY THOUSAND.

FOR THE GENERAL FUND, IF THE CITY CHOOSES TO COVER 100 PERCENT OF THAT INCREASE, SO OVERALL, OUR NET COST FOR PENSION AND INSURANCE CHANGES IS APPROXIMATELY FOUR THOUSAND FIVE HUNDRED DOLLARS.

THIS IS DUE TO A DECREASE IN PENSION AND AN INCREASE TO OUR HEALTH INSURANCE COVERAGE.

I THINK THIS IS A GREAT SUCCESS TO SHARE ON HOW YOU KNOW THE STEPS WE HAVE TAKEN RELATED

[02:30:04]

NEXT, I'M GOING TO TURN IT OVER TO JEANNIE TO TALK ABOUT COMPENSATION AND SOME TERMINOLOGY. THANK YOU.

THANK YOU, BRANDY AND SEEING, THE CHAT THERE, I REALIZE THAT I MISSED MY INITIAL OPPORTUNITY TO UTILIZE THE TERM ACTUARIAL, BUT I'M NOT FINISHED WITH MY PARTS OF THIS PRESENTATION YET, SO I STILL HAVE A CHANCE.

THIS IS JUST A LITTLE BIT OF A REMINDER EDUCATION ABOUT SOME OF THE MECHANICS, SOME OF THE TERMS THAT WE USE WHEN WE TALK ABOUT COMPENSATION BECAUSE THEY THEY GET KIND OF TOSSED AROUND OUT THERE.

AND I THINK PROBABLY THE MOST IMPORTANT THING FOR EVERYONE TO REMEMBER IS THAT WITH THE EXCEPTION OF MERIT, WHICH WE'VE, YOU KNOW, WHICH EVERYONE HAS MADE A COMMITMENT TO IS THAT WE HAVE THE OPPORTUNITY TO USE VARIOUS METHODS THAT WE HAVE DESCRIBED HERE AND THAT WE'RE GOING TO TALK MORE ABOUT IN THIS PRESENTATION.

WE DON'T HAVE TO EXCLUSIVELY USE ONE OR ANOTHER OF THESE OPTIONS IN ORDER TO ACHIEVE OUR OBJECTIVES. BUT IN THE LARGER SENSE, JUST A REMINDER OF WHAT AN EMPLOYEE COMP RATIO IS.

WE'VE BEEN HAMMERING ON COMP RATIOS FOR A COUPLE OF YEARS NOW.

SO OH, AND HERE'S MY OPPORTUNITY A COMP RATIO IS KIND OF LIKE AN ACTUARIAL ANALYSIS, BUT WHAT IT ACTUALLY REPRESENTS IS AN EMPLOYEE'S RELATIVE POSITION IN THE PAY RANGE, STARTING AT THE MINIMUM.

SO THAT'S WHAT A COMP RATIO IS.

SO IT'S WHERE AN EMPLOYEE'S ACTUAL PAY IS IN THEIR PAY RANGE IN COMPRESSION ADJUSTMENTS AND COLAS ARE COST OF LIVING ADJUSTMENTS WHENEVER WE UTILIZE THOSE.

WHAT'S IMPORTANT TO REMEMBER IS THAT THE PAY RANGES THEMSELVES ARE NOT ADJUSTED, JUST THE EMPLOYEE RATES OF PAY.

SO THAT'S WHAT SETS THEM A LITTLE BIT DIFFERENT THAN, FOR INSTANCE, A MARKET ADJUSTMENT WHERE AN EMPLOYEE AND THEIR PAY RANGE MIGHT BOTH BE ADJUSTED.

SAME AS IN A COMPRESSION ADJUSTMENT.

SO MORE TO COME ON ALL OF THESE, AND I KNOW THAT YOU'RE ALL GOING TO BE COMPENSATION EXPERTS BY THE TIME YOU GET THROUGH THIS.

THANKS. NEXT SLIDE.

THIS IS A VERY BUSY SLIDE.

DEFINITELY NOT SOMETHING THAT YOU NEED TO MEMORIZE.

YOU'VE SEEN THIS INFORMATION YEAR OVER YEAR.

HISTORICALLY, IT'S BEEN IN MORE OF KIND OF A NARRATIVE WORD FORMAT.

WE REFORMATTED IT A LITTLE BIT TO MAKE IT MORE ILLUSTRATIVE OF THE STORY.

AND REALLY, THE STORY IS JUST THAT THIS IS THE HISTORY OF COMPENSATION DECISIONS BASED ON REALLY THE FINANCIAL CONSTRAINTS THAT THE CITY WAS EXPERIENCING THAT HAVE LED US TO WHERE WE ARE TODAY WITH, YOU KNOW, MAJOR TURNAROUNDS BEGINNING THIS FISCAL YEAR.

AND I THINK GREAT OPTIMISM FOR HOW WE CAN STAY THE COURSE GOING FORWARD.

AND BRANDY, BACK TO YOU.

THANK YOU, JEANNIE. SO IN COUNCIL'S COMMITMENT TO MAKING EMPLOYEE COMPENSATION A PRIORITY, THE NEXT SET OF SLIDES PROVIDES A RECAP OF THE BUDGET TEAM'S RECOMMENDATION IN PRIORITY ORDER TO ENSURE A HEALTHY AND COMPETITIVE COMPENSATION PLAN.

THE NUMBER ONE PRIORITY IS MINIMUM WAGE ORDINANCE IMPACTS ON THE CITY'S COMPENSATION PLAN NUMBER TWO MERIT INCREASES.

THESE ARE BUDGETED AND A PART OF OUR COMMITMENT MADE TO EMPLOYEES FOR ONGOING MERITS.

AND THEN THE NEXT THREE MARKET COMPRESSION ADJUSTMENTS AND COST OF LIVING ADJUSTMENTS ARE ADDITIONAL RECOMMENDATIONS TO ENSURE THE CITY MAINTAINS A HEALTHY COMPETITIVE COMPENSATION PLAN.

NEXT SLIDE, PLEASE.

THE MINIMUM WAGE ORDINANCE, SO ANNUALLY, STARTING IN JANUARY OF 2023, THE CITY'S MINIMUM WAGE MUST INCREASE BY THE CONSUMER PRICE INDEX AND MUST BE AT LEAST TWO DOLLARS OVER THE STATE MINIMUM WAGE.

THIS EXACT CPI PERCENTAGE INCREASE FOR THE NEXT YEAR IS CURRENTLY UNKNOWN AND WILL BE NOT

[02:35:02]

AND FOR ILLUSTRATION PURPOSES, WE HAVE PROVIDED TWO COST ESTIMATES A THREE PERCENT INCREASE IN A FIVE PERCENT INCREASE, ALTHOUGH WE COULD SEE HIGHER INCREASES BASED ON CURRENT CPI TRENDS.

BUT REGARDLESS OF THE INCREASE, IT IS VERY IMPORTANT THAT WE MAINTAIN CURRENT EMPLOYEE COMP RATIOS TO AVOID COMPRESSION AND TO NEGATIVELY IMPACT THE CITY'S RECRUITMENT AND RETENTION EFFORTS.

THE MAIN REASON FOR THE THE LARGE INCREASE BETWEEN THE THREE PERCENT AND FIVE PERCENT COST ESTIMATE IS ANY INCREASE GREATER THAN THREE PERCENT WILL REQUIRE MODIFICATIONS TO THE CITY'S CURRENT PAID PLAN STRUCTURE, ESPECIALLY IN THOSE LOWER PAY RANGES.

AND THIS IS VERY LIKELY BASED ON CURRENT TRENDS.

ALSO TO NOTE THAT IF WE IMPLEMENT OTHER METHOD MEASURES SUCH AS COMPRESSION, COLA AND MARKET ADJUSTMENTS, THEY COULD HELP OFFSET SOME OF THESE COSTS.

NEXT SLIDE. THE NEXT PRIORITY FOR COMPENSATION IS MERITS.

THIS IS A COMMITMENT TO EMPLOYEES THAT STARTED WITH THE IMPLEMENTATION OF THE COMPENSATION STUDY IN JULY OF 2021 TO PROVIDE ONGOING MERITS TO EMPLOYEES.

THIS COMMITMENT HAS BEEN A HUGE BOOST TO EMPLOYEE MORALE, AS ESTIMATED A CITYWIDE COST OF OVER $2 MILLION MERITS ARE BUDGETED AND FORECASTED ANNUALLY IN THE CITY'S FIVE YEAR PLANS. THIS INCLUDES A THREE PERCENT INCREASE FOR REGULAR PAID PLAN EMPLOYEES AND A STEP INCREASE FOR FIRE POLICE AND WATER SERVICE OPERATOR PAY PLANS.

AND WITH THAT, I'M GOING TO TURN IT BACK OVER TO JEANNIE TO TALK ABOUT MARKET ADJUSTMENTS.

THANK YOU. THANK YOU, BRANDY.

ALL RIGHT, SO WHAT'S A MARKET ADJUSTMENT, SO A MARKET ADJUSTMENT SYSTEM IN YOUR COMPENSATION PLAN IS REALLY A NECESSARY ELEMENT TO MAINTAIN YOUR PLANS HEALTH.

WHAT WE DON'T WANT TO NEED TO DO IS GO OUT IN ONE YEAR AND FIND OUT THAT WE NEED TO ADJUST ALL OF OUR PAY RANGES BECAUSE THEY'VE ALL FALLEN BEHIND THE MARKET.

SO A HEALTHY COMPENSATION STRATEGY SAYS TAKE AT LEAST 25 FIVE PERCENT OF THE POSITIONS OF YOUR BENCHMARK POSITIONS WITHIN THE ORGANIZATION AND SURVEY THOSE EACH YEAR.

GO OUT TO YOUR BENCHMARKS AND LOOK AND SEE WHAT THEY'RE DOING AS IT RELATES TO THEIR PAY RANGES AND, IF NECESSARY, MAKE THOSE ADJUSTMENTS EACH YEAR THAT YOU IDENTIFY THOSE RATHER THAN, YOU KNOW, YEAR GOING BY AND ALLOWING THEM TO POTENTIALLY FALL FURTHER AND FURTHER BEHIND. SO HOW DO WE GO ABOUT DOING THAT? IS THAT WE TAKE A LOOK AT POSITIONS SPECIFICALLY WHERE WE'RE HAVING HIGH TURNOVER, WHERE WE'RE HAVING INCREASED DIFFICULTY AND RECRUITMENT.

WE REALIZE RECRUITMENT IS TOUGH ALL OVER THE PLACE, BUT DEFINITELY SOME POSITIONS ARE FAR MORE DIFFICULT THAN OTHERS.

WE'RE GETTING FEEDBACK DURING RECRUITMENT PROCESSES, POTENTIALLY THAT OUR PAY MAY NOT BE COMPETITIVE. SO HUMAN RESOURCES KEEP TRACK KEEPS TRACK OF ALL THOSE.

WE RECEIVE INPUT FROM LEADERS TO SAY, HEY, I THINK YOU NEED TO BE TAKING A LOOK AT THIS POSITION. THIS IS WHAT I'M HEARING OUT THERE.

SO WE DEFINITELY TAKE THOSE.

WE ADD ADDITIONAL POSITIONS TO THAT, IF NECESSARY, TO MAKE SURE THAT WE HAVE A GOOD CROSS-SECTION OF THE COMPENSATION PLAN.

AND THEN WE CONDUCT THAT BENCHMARK STUDY.

WHAT'S IMPORTANT IS IF WE DO MAKE ADJUSTMENTS TO PAY RANGES IS THAT WE MAINTAIN THOSE EMPLOYEE COMP RATIOS WHEN WE INCREASE THOSE RANGES TO MAKE SURE THAT EMPLOYEES DON'T LOSE TRACTION. THAT'S WHAT CAUSES COMPRESSION IS WHEN WE MOVE OUR PAY RANGES, BUT WE DON'T HAVE OUR EMPLOYEES KEEPING UP.

AND SO THEIR MERIT, WHICH YOU KNOW, NOW WE AT LEAST DO HAVE MERIT, BUT THEIR MERIT SHOULD BE FOR PERFORMANCE, NOT MERELY TO KEEP UP WITH THE MARKET.

SO WHAT WE'RE SEEING HERE IS JUST AN ESTIMATED BUDGET FOR THE FIRST YEAR OF ONE HUNDRED AND FORTY THREE THOUSAND DOLLARS.

WE'VE NOT GENERATED A BUDGET FOR SOMETHING LIKE THIS BEFORE, SO WE'RE NOT SURE HOW HOW

[02:40:06]

IT'S A GOOD START.

IT REPRESENTS 25 PERCENT OR 0.25 A QUARTER OF A PERCENT OF OUR ANNUAL SALARY EXPENSE, JUST AS A STARTING POINT.

AND THEN IF WE DIDN'T USE IT ALL WHAT ORGANIZATIONS TEND TO DO, OF COURSE, BECAUSE SOME YEARS YOU NEED MORE OF THESE THAN OTHERS IS THAT YOU CARRY YOUR UNUSED FUNDS FORWARD BECAUSE YOU MAY NEED A LARGER AMOUNT IN FUTURE YEARS.

IF WE FIND THAT WE UNDERESTIMATED OUR NEED ON THIS, WE MAY INCREASE THIS IN SUBSEQUENT BUDGET YEARS.

SO BEFORE MOVING ON QUESTIONS ON MARKET ADJUSTMENTS, JEANNIE COUNCIL MEMBER MCCARTHY HAS A QUESTION REGARDING MERIT PAY.

OH, PERFECT. THANK YOU.

I JUST WANT TO MAKE SURE THAT MY UNDERSTANDING OF MERIT PAY IS THE SAME AS YOURS.

SO IF WE HAD A GROUP OF, SAY, 10 EMPLOYEES IN A GIVEN GROUP, IT MIGHT BE THAT THE TOP PERFORMERS GET FOUR PERCENT RAISE.

AND THE LOW PERFORMERS MIGHT GET ZERO PERCENT MERIT INCREASE.

IS THAT CORRECT? THANK YOU.

COUNCIL MEMBER MCCARTHY FOR THAT QUESTION.

SO THAT IS TRUE PAY FOR PERFORMANCE, WHICH IS JUST A SLIGHTLY DIFFERENT DEFINITION.

THE CITY AT THIS TIME FOR THIS CURRENT FISCAL YEAR AND PROPOSED GOING INTO NEXT FISCAL IS ACTUALLY USING A FIXED AMOUNT.

THERE IS A HISTORY.

I'LL JUST SAY OF SOME REAL CONCERN AND MISTRUST FOR THE ABILITY TO TRULY USE PAY FOR PERFORMANCE CREDIBLY WITHIN THE ORGANIZATION.

THERE NEEDS TO BE EXTREME CONFIDENCE IN THE PERFORMANCE MANAGEMENT TOOL, WHICH WE HAVE JUST IMPLEMENTED THIS YEAR.

AND SO WE'RE JUST GOING INTO OUR SECOND YEAR OF THAT, COMING UPON THIS NEXT FISCAL YEAR.

AND THERE NEEDS TO WE NEED TO MAKE SURE THAT LEADERS ARE EFFECTIVELY TRAINED.

SO WE HAVE A TRAINING PLAN, DEVELOPMENT PLAN, IF YOU WILL, THAT WE'RE PUTTING TOGETHER FOR LEADERSHIP ON WRITING, PERFORMANCE OBJECTIVES, RATING AND ENSURING THAT EMPLOYEES CAN FEEL CONFIDENT THAT WHEN WE IMPLEMENT PAY FOR PERFORMANCE, THAT IT'S REALLY WORKING, THAT THERE'S NO FAVORITISM BEING PLAYED, ET CETERA.

SO I DON'T HAVE ANY ARGUMENT WITH THE THE POLICY OF THAT.

WE'RE GOING TO IMPLEMENT PAY FOR PERFORMANCE IN THE FUTURE.

I GUESS MY CONCERN IS THAT WE CALL SOMETHING MERIT PAY THAT IS NOT MERIT PAY AND MERIT PAY IS A TERM THAT WE USED WHEN I WAS IN INDUSTRY AT THREE DIFFERENT COMPANIES.

AND IT WAS IT MEANT SOMETHING COMPLETELY DIFFERENT TO THE WAY THAT THAT TERM IS BEING USED HERE. SO I THINK WE SHOULD QUIT USING THE TERM MERIT PAY WHEN IT'S NOT MERIT PAY.

AND IF YOU WANT TO REPLACE IT WITH PAY PER PERFORMANCE, FINE.

BUT LET'S USE TERMS THAT ARE CONSISTENT WITH THE WORDS WHAT THEY MEAN IN THE GENERAL POPULATION. THAT'S MY SUGGESTION, THANK YOU.

I UNDERSTAND, THANK YOU FOR THAT FEEDBACK.

OF NOTE, AN EMPLOYEE WHO RECEIVES A RATING OF CONSISTENTLY BELOW EXPECTATIONS DOES NOT RECEIVE A MERIT AT THIS TIME.

SO AN EMPLOYEE MUST BE ADEQUATELY MEETING EXPECTATIONS TO RECEIVE OUR CURRENT MERIT.

OK, THAT'S INTERESTING.

SO THAT'S MOVING TOWARDS MY UNDERSTANDING OF WHAT THAT PHRASE MEANS.

THANK YOU. YES.

I JUST I JUST POINT OUT, I NEVER KNEW THAT THAT WAS TRUE BEFORE.

GOOD TO KNOW. OK.

ALL RIGHT, MOVING ON TO COMPRESSION.

SO LOTS OF EDUCATION ON COMPRESSION IN THE LAST YEAR OR SO.

BUT WHAT A COMPRESSION ADJUSTMENT DOES IS IT LOOKS AT AN INDIVIDUAL, THEIR TENURE IN THEIR POSITION OR WITH THE CITY AND SAYS BASED ON THAT AMOUNT OF TIME, WHERE SHOULD THIS EMPLOYEE ACTUALLY BE HAVE MOVED INTO THEIR PAY RANGE? AND TO REFLECT BACK ON THE RESULTS OF THE COMPENSATION STUDY, A LARGE AMOUNT OF THE CITY'S ENTIRE POPULATION, OVER 60 PERCENT OF OUR EMPLOYEES WERE STILL BELOW THE MIDPOINT OF

[02:45:02]

IT WAS VERY DIFFICULT AND IT WAS ONE OF OUR BIGGEST FEEDBACKS FROM OUR EMPLOYEE SURVEYS WAS THAT EMPLOYEES, WE MIGHT HAVE A COMPETITIVE PAY RANGE, BUT THE EMPLOYEES COULDN'T ACTUALLY MOVE THROUGH THE RANGE.

SO A COMPRESSION ADJUSTMENT WAS IMPLEMENTED THIS YEAR.

IT WAS HUGE. IT WAS A HUGE WIN AND WE DID MAKE DEFINITELY MAKE GAINS.

HOWEVER, THOSE GAINS WERE INCREMENTAL.

WE ARE STILL HAVING ISSUES WITH BRINGING IN QUALIFIED EMPLOYEES FROM A RECRUITMENT PERSPECTIVE AND MAKING SURE THAT THEY ARE NOT GOING TO GET PAID MORE THAN OUR CURRENT EMPLOYEES WHO HAVE ACTUALLY DONE THAT SAME WORK FOR THE CITY FOR HOWEVER MANY YEARS.

SO WE ARE RECOMMENDING THAT WE CONTINUE TO WORK ON COMPRESSION IN TARGETED AREAS, NOT SOMETHING THAT WE NEED TO DO ACROSS THE BOARD.

IT HAS VERY SPECIFIC POCKETS THAT DEFINITELY HAVE MORE NEED THAN OTHERS, BUT IT'S ONE OF THE TOOLS IN OUR TOOLBOX IN ORDER TO CONTINUE TO GET OUR CURRENT EMPLOYEES INTO THE PAY RANGES AT A RATIO THAT IS APPROPRIATE TO THEIR TO THEIR LOYALTY TO THE CITY.

AND AGAIN, AN EXPENSE ESTIMATE.

THIS IS JUST A ROUGH NUMBER SO THAT WE COULD SEE WHAT MIGHT THAT LOOK LIKE? WE WOULD STILL NEED TO DO MUCH MORE ANALYSIS.

AND AGAIN, IT COULD BE USED IN COMBINATION WITH OTHER STRATEGIES, AND SOME OF THOSE STRATEGIES MIGHT MINIMIZE SOME OF THESE NEEDS.

SO, SO THESE WILL ALL NEED TO WORK HAND IN HAND.

AND NEXT SLIDE.

AND MY LAST SLIDE, I BELIEVE, IS ON A COST OF LIVING ADJUSTMENT OR OTHERWISE KNOWN AS A COLA. SO A TRADITIONAL DEFINITION OF A COLA IS THAT ALL EMPLOYEES ARE ADJUSTED UPWARD BY SOME SPECIFIC, USUALLY A PERCENTAGE AMOUNT OR A SET DOLLAR AMOUNT.

FOR INSTANCE, I THINK MOST OF US HEARD THE COUNTY RECENTLY DID A DOLLAR PER HOUR OR SOMETHING LIKE THAT. THAT WAS THEIR COST OF LIVING ADJUSTMENT.

THAT DOES NOT ADJUST THE PAY RANGES.

SO IT'S JUST THE EMPLOYEES.

THE ESTIMATED EXPENSE FOR EACH ONE PERCENT OF COLA THAT WE MIGHT IMPLEMENT IS LISTED HERE FOR ILLUSTRATION PURPOSES.

I DID MAKE A NOTE IT WOULD MINIMIZE THE NEED FOR COMPRESSION ADJUSTMENTS, AS I MENTIONED EARLIER. AND SO A COST OF LIVING ADJUSTMENT AGAIN IS ANOTHER TOOL IN THE TOOLBOX THAT PERMITS AN INCREASE POTENTIALLY FOR ALL EMPLOYEES, AS OPPOSED TO OTHER STRATEGIES THAT ARE MORE TARGETED.

THAT BEING SAID, IT IS NOT EASY TO DO A COST OF LIVING ADJUSTMENT IN STEP PLANS.

THEY'RE NOT DESIGNED TO HAVE COLAS BECAUSE WHATEVER WE MIGHT DO WOULD TAKE ALL OF THOSE EMPLOYEES OFF OF THEIR STEP IN THE STEP PLAN, WHICH WE JUST WORKED SO HARD TO GET THEM ON. SO WE WOULD NEED TO CONSIDER SOME TYPE OF ALTERNATE STRATEGY IF THIS IS PART OF WHAT WE IMPLEMENT TO MAKE SURE THAT THOSE EMPLOYEES ARE NOT POTENTIALLY LEFT OUT OF AN INCREASE. SHOULD WE WANT TO MOVE FORWARD WITH SOMETHING BUT A STANDARD TRUE COLA WOULD NOT BE RECOMMENDED. WE WOULD WANT TO USE ONE OF OUR OTHER TOOLS.

AND I BELIEVE I AM TURNING THINGS OVER TO JARED.

THANK YOU. THANK YOU, I JUST WANT TO CHECK REAL QUICK.

CAN YOU HEAR MY AUDIO? YES, WE CAN.

OK. SO THANK YOU, MAYOR.

COUNCIL, I REALLY APPRECIATE THE OPPORTUNITY TO PRESENT TO YOU TODAY ON BEHALF OF THE EMPLOYEE ADVISORY COMMITTEE, AS WAS STATED EARLIER.

MY NAME IS JARED WATUSI AND I'M A EAC CO-CHAIR AND ALSO SERVE AS THE BUDGET TEAM'S REP AS FAR AS CDC GOES.

UM, AS FAR AS OUR PRESENTATION TODAY, IT'S GOING TO BE VERY SIMILAR TO WHAT WAS PRESENTED TO YOU BY ISD MANAGER AND HUMAN RESOURCES.

IT'S AIMED AT INVESTING IN THE EMPLOYEES TO HELP ADDRESS OUR RECRUITMENT AND RETENTION

[02:50:04]

BEFORE I GET INTO THE DETAILS OF WHAT OUR RECOMMENDATIONS ARE, I WOULD LIKE TO THANK THE CITY MANAGER'S OFFICE, THE BUDGET TEAM AND CITY COUNCIL FOR ALL THEIR HARD WORK AND DEDICATION IN PASSING THAT COMPENSATION PLAN DURING LAST YEAR'S BUDGET CYCLE.

THIS IS ONE OF THE BIGGEST WINS FOR THE EMPLOYEES THAT I'VE SEEN IN MY TENURE, ESPECIALLY WITH THE ONGOING MERIT BEING FUNDED INTO THE FIVE YEAR PLAN.

THIS WAS A HUGE, CRUCIAL STEP, AND HAS LAID AN AMAZING FOUNDATION TO BUILD UPON.

AND IT WAS THE FIRST STEP THAT I FEEL IN ADDRESSING SOME OF THE LARGEST CONTRIBUTING FACTORS TO OUR RETENTION AND RECRUITMENT ISSUES.

HOWEVER, WE CAN'T JUST LEAVE IT HERE.

JEANNIE TOUCHED ON THIS A LITTLE BIT.

IF WE LEAVE IT EXACTLY AS IT IS, IT'S JUST A FOUNDATION.

WE'RE JUST GOING TO BE REPEATING THOSE SAME MISTAKES THAT WERE HIGHLIGHTED IN THE EARLIER SLIDE, WHICH SHOWED OUR COMPENSATION HISTORY GOING BACK TO FISCAL YEAR 2008.

WE HAVE TO LEARN FROM THAT PAST AND MOVE FORWARD WITH A BETTER PLAN.

YOU CAN GO AHEAD AND GO OUT NEXT SLIDE, WHO WAS DRIVING THE BUS? THANKS, RICK. ALL RIGHT SO EAC HAS IDENTIFIED TWO MAIN PRIORITIES THE TOP PRIORITY IS BEING SPLIT BY A NINE NINE VOTE IN OUR LAST MEETING.

AS YOU GUYS ARE ALL AWARE, THE ECONOMIC IMPACTS OF THE PANDEMIC, AS WELL AS THE RISING INFLATION, HAVE HIT FLAGSTAFF EXTREMELY HARD ON MULTIPLE FRONTS.

THIS INCLUDES HOUSING, GROCERIES, SERVICE COSTS AND JUST EVERYDAY EXPENSES THAT OUR EMPLOYEES HAVE TO DEAL WITH.

WITH THIS IN MIND, EAC HAS MADE THIS RECOMMENDATIONS TO ADDRESS THIS AND TO SPECIFIC AREAS. THE FIRST EAC IS RECOMMENDING THE CITY COVER THE ENTIRE FIVE PERCENT INCREASE TO THE MEDICAL INSURANCE PREMIUM AND SECOND, AN ADDITIONAL PAY INCREASE TO ALL EMPLOYEES ON TOP OF THE MERIT. THIS ADDITIONAL INCREASE IS SPECIFICALLY ASKED TO HELP THE EMPLOYEE COMBAT THE EXTREMELY HIGH RATE OF INFLATION, WHICH WAS GIVEN TO US A LITTLE OVER SEVEN PERCENT. AS OF RIGHT NOW, MERITS WITH THREE PERCENT AND THIS FIVE PERCENT COLA NUMBER WAS BROUGHT UP AS A NO WIN IN CONJUNCTION WITH THAT, THREE PERCENT MERIT WOULD COVER THE INFLATION FOR THE EMPLOYEE.

THE EAC WAS LESS CONCERNED WITH THE NAME OF THE INCREASE, BUT THE THINGS THEY WANTED TO MAKE SURE HAPPENED WAS THAT IT WENT INTO EFFECT ON JULY ONE FOR ALL EMPLOYEES.

AND THE SECOND PART, I GUESS, IS THE BIGGEST PART IS THE ALL EMPLOYEES ASPECT, I'LL GET INTO THAT A LITTLE BIT LATER.

EAC IS AWARE OF THE LARGE DOLLAR VALUE ASSOCIATED WITH THIS ASK.

WE'RE ALSO AWARE IT MAY NOT GET FULLY FUNDED.

WE WANTED TO MAKE SURE COUNCIL KNEW HOW EFFECTIVE THE EMPLOYEE BODY IS BY THE CURRENT ECONOMIC SITUATION IN FLAGSTAFF AND ALSO HOW IMPORTANT IT IS TO THE EMPLOYEE BODY AS A WHOLE THAT ALL OF THEM SEE AN INCREASE.

THIS IS WHERE THE SECOND PRIORITY OF COMPRESSION ADJUSTMENT COMES IN, AS JEANNIE STATED EARLIER, NOT ALL EMPLOYEES WILL BE ELIGIBLE FOR A COLA.

THE ISSUE WAS VERY CLEAR IN THEIR VOTE THAT THEY WANTED TO MAKE SURE ALL EMPLOYEES SAW AN INCREASE ON TOP OF THE MERIT.

AND THIS WAS BECAUSE ALL EMPLOYEES HAVE BEEN AFFECTED BY THE INFLATION AND THE RISING COST OF LIVING INDEX.

THE BUDGET TEAM HAS IDENTIFIED COMPRESSION ADJUSTMENT AS ONE OF THEIR PRIORITIES, AND EAC IS IN SUPPORT OF THIS.

BUT AS A COMPLEMENTARY PIECE TO THE COLA TO ENSURE THAT THOSE THAT MISS OUT ON THAT COLA STILL SEE AN INCREASE, EAC DOES HAVE FAITH IN THE BUDGET TEAM THAT THEY WILL FIGURE OUT THE EXACT MECHANICS OF THIS INCREASE SO THAT ALL EMPLOYEES WILL BE ELIGIBLE.

AND GO TO NEXT SLIDE.

RIGHT, THIS SLIDE ILLUSTRATES OUR CURRENT MEDICAL PREMIUM SITUATION.

WHAT IT SHOWS IS A DIRECT COMPARISON FOR THE CITY OF FLAGSTAFF AND COCONINO COUNTY, WHICH IS ALL OF YOU GUYS KNOW ARE PART OF NAPEP OFFER THE EXACT SAME HEALTH PLAN WITH THE SAME BENEFITS TO THE EMPLOYEES.

THE FIRST COLUMN IN FRONT OF YOU SHOWS WHAT A MONTHLY COST TO THE EMPLOYEE IS THAT IS ENROLLED IN WHAT WE CALL THE EMPLOYEE ONLY PLAN, AND THIS IS THE BASE PLAN.

SO IF YOU WORK FOR THE OF FLAGSTAFF, YOU'LL PAY SIXTY FIVE SIXTY A MONTH.

HOWEVER, IF YOU WORK FOR COCONINO COUNTY, YOU PAY TWENTY DOLLARS.

THE SECOND COLUMN ALSO SHOWS THE EMPLOYEE COST IN A PER MONTH BASIS.

AND THIS IS FOR THOSE ENROLLED IN THE BASE FAMILY PLAN.

IF YOU WORK FOR THE CITY OF FLAGSTAFF, SIX HUNDRED TWENTY TWO DOLLARS, HOWEVER, IF YOU WORK FOR THE COUNTY, YOU ONLY PAY FOUR HUNDRED AND EIGHTY.

SO THE QUESTION MAY BE ASKING YOURSELF IS WHY, WHY DOES THIS HAPPEN? AND THE ANSWER FALLS IN THE STRATEGY OF COST SHARING BETWEEN THE EMPLOYER AND THE EMPLOYEE. SO THE COUNTY, AS WELL AS OTHER COMPETING ENTITIES IN ARIZONA, HAVE CHOSEN TO SUBSIDIZE MORE OF THE EMPLOYEE SHARE OF THOSE PREMIUMS THAN THE CITY OF FLAGSTAFF HAS.

DUE TO THIS, EAC FEELS IT IS IMPERATIVE TO HAVE THE CITY COVER THE ENTIRE FIVE PERCENT INCREASE TO NOT PUT US FURTHER BEHIND THOSE COMPETING ENTITIES.

THIS WILL HELP ADDRESS BOTH RETENTION OF OUR CURRENT EMPLOYEES AS WELL OFFER A BETTER PACKAGE OF RECRUITMENT OF NEW EMPLOYEES.

IF THE CITY DOES NOT COVER INCREASE, WE'RE GOING TO BE ADDING THIRTY THREE DOLLARS TO THE EMPLOYEE ONLY PER MONTH AND EIGHTY TWO DOLLARS TO THE FAMILY PLAN.

THAT WOULD PUT OUR FAMILY PLAN OVER $700 A MONTH WHILE OUR COMPETITORS ARE SIGNIFICANTLY

[02:55:02]

AS A QUICK RECAP TO THE EAC'S RECOMMENDATION, WE NEED TO CONTINUE TO MAKE OUR EMPLOYEE COMPENSATION A PRIORITY.

WE DEFINITELY WERE MADE A PRIORITY LAST YEAR WITH THE PASSING OF THOSE NEW PAY PLANS AND THE FUNDING OF THE MERIT.

AND AGAIN, THIS CRITICAL STEP BUILT AN EXCELLENT FOUNDATION TO BUILD UPON, AND IT'S SOMETHING THAT WILL DEFINITELY ENSURE THE FUTURE OF TEAM FLAGSTAFF AS LONG AS WE HEAD IN THAT RIGHT DIRECTION. BUT AGAIN, THE WORK IS NOT DONE.

WE CANNOT LOSE THAT TRACTION IN THE PROGRESS WE'VE MADE IN ORDER TO ADDRESS THESE NEW ISSUES OF RECRUITMENT AND RETENTION.

WE NEED THE BENEFIT AND COMPENSATION STRATEGY THAT ENSURES WE ARE TAKING CARE OF OUR CURRENT EMPLOYEES AND REMAINING COMPETITIVE WITH OUR BENCHMARK ORGANIZATIONS.

I FEEL THAT WAS PRESENTED TO YOU TODAY FROM THE CITY MANAGER'S OFFICE.

HR AND EAC WILL DEFINITELY ACCOMPLISH THAT.

THANK YOU. THANK YOU, JARED.

SO IN SUMMARY, EAC CONTINUES TO SUPPORT COUNCIL AND LEADERSHIP'S COMMITMENT TO ONGOING MERIT INCREASES AS A PRIORITY.

AGAIN, THESE ARE ALREADY BUDGETED AND FUNDED IN THE CITY'S FIVE YEAR PLANS.

ALSO, AS PRESENTED BY JARED, COVERING THE HEALTH INSURANCE INCREASES IS CRITICAL AS INCREASES TO THE EMPLOYEE SHARE OF HEALTH INSURANCE REDUCES THE CITY'S COMPETITIVENESS IN OUR COMMUNITY. EAC'S COMPENSATION RECOMMENDATIONS IS TO PROVIDE PAY INCREASES FOR ALL EMPLOYEES DUE TO THE INCREASED COST OF LIVING WE ARE ALL EXPERIENCING AND BUDGET TEAMS. COMPENSATION RECOMMENDATIONS IS TO MAINTAIN A HEALTHY COMPETITIVE COMPENSATION PLAN BY FUNDING, COMPRESSION AND MARKET ADJUSTMENTS.

AND WHILE EAC'S AND BUDGET TEAMS COMPENSATION PRIORITIES ARE DIFFERENT, THEY DO NOT NEED TO BE EXCLUSIVE EACH OTHER AND CAN BE DONE IN COMBINATION.

SO WITH THAT, THAT CONCLUDES OUR PRESENTATION AND WE ARE AVAILABLE FOR ANY QUESTIONS.

COUNCIL MEMBER AS ANY QUESTIONS.

MAYOR, GO FOR IT.

COUNCIL MEMBER SHIMONI, YOU.

I JUST WANT TO FIRST SAY I REALLY APPRECIATE ALL THE EAC'S WORK ON THIS AND THE ATTENTIVENESS WE ARE GIVING TO OUR EMPLOYEES AND UNDERSTANDING THIS VERY COMPLEX ISSUE.

THE IN PARTICULAR, I AM GLAD WE ARE AND I AM IN FULL SUPPORT OF ENSURING THAT THE HEALTH INSURANCE COSTS DO NOT AND DENTAL COSTS DO NOT GO UP FOR OUR EMPLOYEES.

I DO BELIEVE IT WAS ABOUT THREE YEARS AGO THAT THERE WAS A TWO PERCENT RAISE FOR EMPLOYEES. YET THOSE WHO ARE MAKING MINIMUM WAGE OR CLOSE TO IN THE ORGANIZATION ACTUALLY LOST MONEY BECAUSE THEIR INSURANCE WENT UP AND THAT WAS NOT TAKEN INTO ACCOUNT AS WELL PREVIOUSLY.

SO THAT'S REALLY IMPORTANT TO ME PERSONALLY THAT WE ARE NOT INCREASING THE HEALTH AND DENTAL INSURANCE COSTS.

AND IT'S NOT JUST COCONINO COUNTY WE WILL BE LOSING FOLKS TOO.

I MEAN, IF YOU LOOK AT ANY USE BENEFITS, IF YOU'RE AN ADMINISTRATIVE ASSISTANT, CUSTOMER SERVICE NEED THOSE INDIVIDUALS THAT THAT IS A HUGE FACTOR ON WHERE WHERE WE MIGHT BE LOSING EMPLOYEES.

SECONDLY, I JUST WANT TO KIND OF ALSO BACK UP TO A DISCUSSION WE HAD ON TUESDAY WITH THE WORK OF CHRIS RHODEY REGARDING OUR MINIMUM WAGE AND THE INFLATIONARY INCREASES WITH CPI.

AND WE WERE IN THE LAST THREE MONTHS LAST YEAR AVERAGED OR SEPTEMBER, BUT OCTOBER, NOVEMBER, DECEMBER THAT WE WERE LOOKING AT AN AVERAGE OF ALMOST EIGHT PERCENT INCREASE TO THE INCREASE IN MINIMUM WAGE.

WITH THAT IN MIND, AND WE WE LOOKED AT THE WELL PART OF THAT PRESENTATION ALSO PROVIDED WHAT THE MINIMUM WAGE WOULD BE IN FLAGSTAFF UNDER CERTAIN PERCENTAGES.

WHAT I WOULD LIKE TO REQUEST IS THAT BECAUSE WE MAY BE HEDGING ON IT CLOSE ENOUGH ANYWAYS, AND IT WOULD BE GOOD TO PREPARE FOR IT REGARDLESS THAT WE REALLY LOOK AT WHAT WHAT WOULD BE THE IMPLICATIONS IF MINIMUM WAGE FOR THE CITY OF FLAGSTAFF ITSELF WAS SEVENTEEN DOLLARS AN HOUR? AND HOW WOULD THAT AFFECT COMPRESSION AND THE RIPPLE EFFECT FROM THERE?

[03:00:01]

WE NEED TO BE SURE WE'RE TREATING EMPLOYEES FAIRLY WHO ARE CURRENTLY MAKING SEVENTEEN AN HOUR. THAT WOULD BE MY REQUEST THAT WE LOOK AT WHAT WHAT WOULD IT BE IF WE WERE AT SEVENTEEN DOLLARS AN HOUR FOR MINIMUM WAGE FOR THE CITY OF FLAGSTAFF, STARTING THIS FISCAL NEXT FISCAL YEAR? AND JUST WHILE I WAS POINTING OUT THAT ALMOST EIGHT PERCENT WELL, THAT ALMOST EIGHT PERCENT IS GOING TO LEAD TO ABOUT A WHAT WAS IT, $16 AND SEVENTY FIVE CENTS WOULD BE THE MINIMUM WAGE FOR FLAGSTAFF AS A WHOLE.

SO THIS IS NOT AN UNREALISTIC EXPECTATION, AND I WOULD REALLY LIKE TO SEE IF THIS IS A POLICY AND THAT I WANT TO SEE THE NUMBERS FOR THAT PROPOSAL.

SO I'D APPRECIATE IT IF WE COULD MAYBE WORK THAT UP AND SEE WHAT THAT MIGHT LOOK LIKE.

AH THANK YOU. RIGHT, COUNCIL MEMBER SHIMONI.

THANK YOU, NICOLE AND BRANDY AND AND JARED AND CITY MANAGER AND HEIDI OR JEANNIE, I'M SORRY, BUT BASICALLY THE WHOLE TEAM THAT'S BEEN WORKING ON THIS WITH THE EAC ALMOST CALLED YOU THE EOC.

I'M SO GRATEFUL THAT THIS COUNCIL AND OUR LEADERSHIP IS PRIORITIZING THE NEEDS OF OUR EMPLOYEES AND ARE REALLY TAKING THIS SERIOUSLY, NOT JUST AS A ONE YEAR COMMITMENT OR ONE YEAR EFFORT, BUT AN ONGOING EFFORT.

AND SO THANK YOU CITY MANAGER EMPLOYEE ADVISORY COUNCIL EAC.

SO, YEAH, I'D LIKE TO SEE US EXPLORE THE HEALTH AND DENTAL COSTS AS DISCUSSED.

I DO SEE VALUE IN THE COLA THROUGH THE LENS OF EQUITY AND ENSURING THAT EVERYONE DOES RECEIVE A ADJUSTMENT.

GIVEN THAT WE'RE ALL FEELING THE IMPACTS OF THE CURRENT SITUATION, BUT I STILL SEE VALUE IN THE COMPETITION AND MARKET ADJUSTMENTS THAT STAFF IS RECOMMENDING.

SO CITY MANAGER AND TEAM, I'M TORN, RIGHT? I DON'T KNOW WHAT TO DO.

I LIKE TO DO IT ALL, YOU KNOW, BUT OBVIOUSLY RICK IS ONLY SO FINANCIALLY ABLE.

I DON'T KNOW. I'LL JUST STOP TALKING.

BUT I GUESS I'D BE CURIOUS TO EXPLORE NUMBERS FOR ALL THESE THINGS AT THE END OF THE DAY.

OR I'LL GIVE YOU THE BUDGET PROCESS AND SEE WHAT WE CAN DO BECAUSE I DO SEE PUTTING OUR EMPLOYEES FIRST AS A VERY HIGH PRIORITY FOR ME AND FOR THIS COUNCIL.

AND AND I THINK THAT AN INVESTMENT IN OUR EMPLOYEES IS AN INVESTMENT IN US, ESPECIALLY GIVEN HOW CHALLENGING TIMES ARE TODAY.

THANK YOU. ALL RIGHT, GREG OR TEAM, ANY CLOSING COMMENTS OR COUNCIL ANY OTHER QUESTIONS FOR THIS SECTION? WELL, I'LL EXTEND MY THANKS TO ALL THOSE WHO HAVE CONTRIBUTED, AND I WILL ALSO EXTEND MY THANKS TO THE EAC FOR THEIR RECOMMENDATIONS, THE FIVE PERCENT COLA.

YOU KNOW, WHEN I FIRST HEARD OF IT, IT KIND OF RAISED MY EYEBROWS.

THAT'S A PRETTY HIGH COST OF LIVING ADJUSTMENT.

I THINK WE WOULD NEED TO DO SOME ANALYSIS ON THIS.

I DO KNOW THAT THE EIC WRESTLED WITH A LESSER NUMBER, BUT THIS WAS THE OUTCOME OF THAT, SO I WANT TO BE RESPECTFUL OF THE CONSENSUS OF THAT GROUP.

BUT A FIVE PERCENT COLA, IN ADDITION TO OUR MERIT INCREASE, IN ADDITION TO ABSORBING THE THE INCREASED COSTS OF INSURANCE, WHICH WE SUPPORT, BUT ALL OF THAT IN THE AGGREGATE MAY NOT BE IT WILL BE A SIGNIFICANT IMPACT BUDGETARY AND I THINK WE NEED TO.

TO COUNCIL ON THAT, I DON'T KNOW.

WHEN WE NEED TO HAVE FINALITY ON THESE REQUESTS, WE CERTAINLY WANTED TO INTRODUCE THE REQUEST AND THANK YOU, JARED, FOR DOING THAT.

BUT THIS IS A RETREAT AND NOT, YOU KNOW, I THINK MAYBE GIVING US YOUR YOUR THOUGHTS AND DIRECTION IS PROBABLY ABOUT AS MUCH AS WE CAN EXPECT AT THIS POINT.

I THINK THERE'S A LOT MORE DISCUSSION TO BE HAD ON THAT.

THANK YOU. AND YOU GOT A THUMBS UP FROM COUNCIL MEMBER SHIMONI WHILE YOU WERE TALKING.

AND THEN WE HAVE A QUESTION FROM COUNCIL MEMBER MCCARTHY, FOLLOWED BY COUNCIL MEMBER SALAS. SO THIS IS A QUESTION FOR RICK.

YES, I'VE HEARD NUMBERS THAT THE INFLATION RATE IS SEVEN.

MAYBE IT'S EIGHT PERCENT, BUT I DON'T BELIEVE THAT NUMBER WAS ANNUALIZED.

I THINK THAT WAS WHAT IT HAS BEEN LIKE FOR THE LAST TWO OR THREE MONTHS.

SO IT IS POSSIBLE THAT THE ANNUALIZED RATE OF INFLATION COULD BE AT THAT RATE, BUT IT

[03:05:06]

SO THE STAFF HAVE ANY COMMENTS ON THAT.

SO. SO I'M NOT I'M NOT BUYING INTO THIS EIGHT PERCENT COST INFLATION RATE FOR THE WHOLE YEAR. THAT'S MY COMMENT OR QUESTION.

AH COUNCIL MEMBER MCCARTHY, I GUESS I DON'T HAVE AN ANSWER FOR THAT AT THIS POINT, I DEFINITELY HAVEN'T HAD THE OPPORTUNITY TO LOOK AT AND RESEARCH INFLATION AND IMPACTS ON THE CITY OF FLAGSTAFF, SO.

BUT WE'LL KEEP THAT IN MIND AS WE MOVE FORWARD.

OK. COUNCIL MEMBER SALAS OR JEANNIE, DID YOU WANT TO JUMP IN? YES, JUST REAL QUICKLY.

CHRIS RHODEY DOES OBVIOUSLY MONITOR THIS FOR US, AND UNFORTUNATELY WE'RE GOING TO NEED TO BUILD A BUDGET NOT HAVING THIS NUMBER IN OUR POCKET.

I JUST I JUST WANTED TO SAY THAT OUT LOUD.

HE'S ADVISED THAT IT WOULD LIKELY BE OCTOBER OF 2022 BEFORE WE WILL KNOW WHAT THAT ANNUAL FACTOR IS.

SO WE DO NEED TO MONITOR.

WE DO NEED TO MONITOR IT ON AN ANNUALIZED BASIS.

AT THE SAME TIME, WE ARE NOT GOING TO HAVE AN EXACT FIGURE TO HELP US WITH OUR DECISIONS.

THANKS. COUNCIL MEMBER SALAS.

THANK YOU, AS AS OUR STAFF WORK ON CALCULATING THE NUMBERS WHEN IT COMES TO THE CITY COVERING INCREASES TO HELP INSURANCE PREMIUMS. THE MERIT INCREASE PLUS THE FIVE PERCENT COST OF LIVING ALLOWANCE INCREASE AS RECOMMENDED BY THE EAC.

AND I ALSO MINDFUL THAT THE COLA DOES NOT INCLUDE A STEP PLAN.

PERHAPS WE COULD ALSO ANALYZE WHAT THE NUMBER LOOKS LIKE IF WE INCLUDE HAZARD PAY FOR ALL EMPLOYEES.

I DID BRING THAT UP, BUT THERE ISN'T A COUNCIL MEETING AS A FAIR ITEM.

UM, I GUESS I HAVE A QUESTION FOR COUNCIL MEMBER SALAS.

CAN YOU FRAME WHAT THE INTENTION OF HAZARD PAY IS? SO WE HAVE A CONCEPT AND WE CAN TAKE THAT FORWARD DURING OUR BUDGET DISCUSSIONS WITH THE BUDGET TEAM AND LEADERSHIP.

I HEARD YOU SAY ALL EMPLOYEES, SO I JUST WANT TO MAKE SURE WE'RE ON THE SAME PAGE.

WELL, THE HAZARD PAY IS IS A GENERIC TERM FOR FOR PERFORMING WORK THAT INVOLVES PHYSICAL HARDSHIP OR HAZARDOUS DUTY.

BUT SINCE WE I UNDERSTAND, YOU KNOW, TEAM FLAGSTAFF IS WE HAVE NOT EVERYONE HAS THE ABILITY TO WORK FROM HOME, THOUGH WE ENCOURAGE THEM WORK FOR OUR HOME. HOW ABOUT CONSIDERING HAZARD PAY, WHICH IS SOME KIND OF LIKE A ONE TIME BONUS, THEN IT DOES NOT AFFECT SALARY GRADES.

SO CONSIDER IT LESS A ONE TIME BONUS IN THE FORM OF A HAZARD PAY.

ALL RIGHT, WE CAN COME UP WITH ANOTHER TERM, I JUST SORT OF HAZARD PAY BECAUSE I REMEMBER BACK WHEN I WAS WORKING IN CONGRESS, HAZARD PAY WAS KIND OF BUILT IN TO THE ANNUAL BONUSES THAT EMPLOYEES RECEIVE AT ALL LEVELS ACROSS THE BOARD.

GREG, I SEE, YOUR HAND UP.

THANK YOU. QUESTION BACK FOR COUNCIL MEMBER SALAS AND THANK YOU COUNCIL MEMBER SALAS FOR OFFERING THAT UP. AND YES, WE ARE AWARE THAT IT'S A FAIR ITEM THAT'S NOW IN THE QUEUE.

MY QUESTION FOR YOU, COUNCIL MEMBER, IS IF THIS COUNCIL WAS DESIROUS OF CONTINUING THE DISCUSSION OF A POTENTIAL COST OF LIVING ADJUSTMENT, WHICH WOULD BE FOR ALL EMPLOYEES.

[03:10:05]

THANK YOU.

BOTH, BOTH BECAUSE I UNDERSTAND THAT THE COLA FIVE PERCENT OR WHATEVER PERCENT WE DECIDE ON DOES NOT BENEFIT EMPLOYEES WHO ARE IN THIS STEP PLAN.

THANK YOU, IF I MAY.

JARED, IF YOU'RE STILL ABLE TO DO HOP BACK ON AND SHARE WITH US.

I DID NOT SPECIFICALLY RECALL THAT THE COST OF LIVING ADJUSTMENT AS PROPOSED, WOULD EXCLUDE THOSE IN THE STEP PLAN, WHICH WOULD BE POLICE, FIRE AND THE OPERATIONAL COMPONENT OF WATER SERVICES. CAN YOU PROVIDE SOME CLARITY? THANKS, GREG. I CAN.

THIS IS MORE ON CONVERSATION WITH JEANNIE AND BRANDY THE WAY COLA IS RIGHT NOW.

COUNCIL MEMBER SALAS IS A HUNDRED PERCENT CORRECT, BUT THE IDEA FOR ME WAS EVERYONE GETS SOMETHING, AND THAT'S WHERE THAT COMPRESSION ADJUSTMENT CAME IN.

JEANNIE TOUCHED ON IT. OR MAYBE BRANDI DID.

ONE OF THEM DID EARLIER ABOUT APPLYING A COMPRESSION ADJUSTMENT TO THOSE IN THE STEP PLAN, SIMILAR TO A COLA WITH THE REST OF THE CITY.

THAT WAY DOESN'T TAKE PEOPLE OFF STEP, AND EVERY EMPLOYEE GETS A RAISE THAT WOULD DEFINITELY SATISFY WHAT EAC WAS LOOKING FOR.

AND AGAIN, I HOPEFULLY WOULD SATISFY WHAT EVERYONE ELSE WAS TALKING ABOUT WITH REGULAR PAY GETTING SOMETHING AND THEN ALSO STEP PEOPLE GETTING SOMETHING.

THANK YOU. AND WE HAVE A COMMENT FROM COUNCIL MEMBER MCCARTHY.

OH, THANK YOU.

BRIEFLY, GOING BACK TO MY BEFORE I TALKED, WE SHOULD USE PRECISE LANGUAGE.

I MEAN, IF SOMETHING IS NOT MERIT PAY, IT SHOULDN'T BE CALLED MERIT PAY.

WELL, I'LL MAKE THE SAME COMMENT ABOUT HAZARD PAY.

AND THERE'S A LEGITIMATE PLACE FOR HAZARD PAY, BUT I DON'T THINK HAZARD PAY APPLIES TO EVERY EMPLOYEE ACROSS THE COMPANY, THE ORGANIZATION.

SO MAYBE THERE IS A PLACE FOR HAZARD PAY, BUT LET'S NOT USE IT, MISUSED THAT TERM AND TRY TO APPLY IT IN AN INAPPROPRIATE MANNER.

THE OTHER THING I WANT TO CLARIFY IS THAT MY UNDERSTANDING IS WE'RE NOT GIVING DIRECTION RIGHT NOW.

WE'RE JUST HAVING AN OVERALL DISCUSSION ABOUT THE PROS AND CONS OF VARIOUS OPTIONS AND THAT THE CITY MANAGER WILL BE COMING BACK TO US WITH THE RECOMMENDATION.

AND THEN AT THAT POINT, WE'LL BE GIVING DIRECTION.

YOU KNOW, JUST TO LET PEOPLE KNOW WHERE MY HEAD'S AT.

I DO WANT TO INCREASE THE PAY IN THE COMPENSATION AND HOPEFULLY COVER MORE MEDICAL EXPENSES FOR ALL EMPLOYEES.

AND THE REASON IS TO KEEP THE MORALE UP, TO BE FAIR, ET CETERA.

BUT THE DETAILS OF THAT, I DON'T THINK WE'RE READY TO TALK ABOUT THAT YET.

AND I LOOK FORWARD TO A PRESENTATION FROM MR. CLIFTON AND HIS STAFF.

AND THEN AT THAT POINT, WE CAN GIVE SPECIFIC RECOMMENDATIONS WHERE WE'RE AT, WHATEVER WE'VE TALKED ABOUT VARIOUS WAYS OF INCREASING COMPENSATION.

WE'VE TALKED VERY GENERALLY ABOUT HOW MUCH MONEY WE HAVE, BUT WE HAVE TO BALANCE ALL OF THESE THINGS TOGETHER WITH, YOU KNOW, THE AMOUNT OF MONEY WE HAVE, THE AMOUNT OF MONEY WE NEED AND WHAT WE NEED IT FOR A LOT OF DIFFERENT THINGS.

SO WE'RE NOT READY TO GIVE SPECIFIC DIRECTION TO THE CITY MANAGER AT THIS POINT.

AT LEAST THAT'S THE WAY I SEE IT.

THANK YOU. GREG, DO YOU WANT TO RESPOND AND THEN WE'RE GOING TO DO A QUICK TIME CHECK BECAUSE WE'RE ON THIS SECTION.

WE ARE RIGHT AT THE NOON HOUR.

THANK YOU COUNCIL MEMBER MCCARTHY FOR FRAMING THAT NICELY.

COMMENT AND THE TWO COMMENTS.

WE WILL STRIVE FOR CONSISTENT LANGUAGE.

WE HEAR YOU LOUD AND CLEAR ON THE POINT YOU MADE ABOUT MERIT INCREASE.

I WOULD RESTATE IT REALLY IS A MERIT INCREASE AT THE END.

BUT WE'RE ON OUR WAY AND I THINK THAT'S GIVING YOU SOME SOME CAUSE FOR FOR WANTING TO BE MORE PRECISE.

AND I TOTALLY GET THAT.

AS TO THE OTHER POINT, YOU MADE, YES, YOU'RE NOT REALLY WE'RE NOT LOOKING FOR FINALITY OR OUTCOMES HERE.

[03:15:02]

WHAT I HEARD YOU SAY AND I THINK WHERE OTHERS MAY BE ON THIS AND WHEN WE CAN CONTINUE TO VET THIS IS THERE'S AN INCLINATION TO DO SOMETHING.

AND I THINK THERE'S AN INCLINATION TO DO SOMETHING FOR ALL EMPLOYEES.

AND IF THAT IS ENCAPSULATED IN A COST OF LIVING ADJUSTMENT AND A COMPRESSION ADJUSTMENT SO THAT ALL EMPLOYEES ARE BENEFITED BY IT, PERHAPS WE BUDGET TEAM AND ULTIMATELY LEADERSHIP CAN WRESTLE WITH THIS AND COME BACK WITH SOME REFINED ADJUSTMENTS.

THE EAC ON THIS JUST MET RECENTLY, WE WERE AT THE MEETING AND SO THIS IS ALL RELATIVELY FRESH AND WE CERTAINLY WERE NOT EXPECTING CONCLUSIVE OUTCOMES AT THIS TIME, BUT RATHER A GOOD DISCUSSION, WHICH IS WHAT WE'RE HAVING.

SO THANK YOU. NOW, JUST A REAL QUICK FOLLOW UP.

BASICALLY, WHAT YOU SAID I AGREE WITH.

AND JUST SPEAKING FOR MYSELF, I DO WANT TO IMPROVE THE COMPENSATION FOR OUR EMPLOYEES AND I'M LOOKING FORWARD TO THE DETAILS IN THE FUTURE.

AND THEN AS FAR AS WHAT WORDS WE USE, I'LL QUOTE CELIA BARRETTS, WHO USED TO SIT ON THIS COUNCIL FOR QUITE SOME TIME.

AND SHE SAYS WORDS MATTER, AND SHE'S RIGHT.

THANK YOU. OK.

WITH THAT, WE ARE AT THE NOON HOUR.

WE HAVE 30 MINUTES SCHEDULED FOR LUNCH, SO WE'RE SLIGHTLY OFF PACE, BUT WE'VE GOT SOME FLEX THIS AFTERNOON.

SO HOW ABOUT WE RECONVENE AT 12:30? THAT'S SOUNDS GOOD. I THINK THAT SOUNDS VERY GOOD, NICOLE.

THUMBS UP BY THE MAYOR.

OK, ALL RIGHT.

THUMBS UP. 12:30 WE WILL SEE YOU BACK HERE FOR BOND COMMITTEE UPDATE.

EVERYBODY HAVE A GOOD LUNCH.

ALL RIGHT, IT APPEARS THAT WE HAVE JUST ABOUT EVERYBODY, SO I THINK WE'RE GOOD TO GO.

I HAVE TURNED THE STREAM BACK ON.

OK. AND SO I'LL LEAVE IT TO TO YOU ALL.

ALL RIGHT. WELL, WELCOME BACK TO THE AFTERNOON SESSION OF OUR BUDGET RETREAT TODAY.

IF YOU NOTICED IN THE MORNING SESSION, THERE WAS AN INTERESTING THING THAT HAPPENED WHEN WE WERE TALKING ABOUT CELEBRATING WINS THAT ONCE WE KIND OF PUT THAT OUT IN THE PURVIEW, WE SORT OF STARTED TO PILE ON LIKE, HEY, THAT'S A WIN, AND THIS IS ANOTHER ONE, AND WE KIND OF TUNED THAT ATTENTIONAL FOCUS FOR THAT.

SO THAT'S ACTUALLY A STRATEGY AS YOU MOVE THROUGH THIS INFORMATION THIS AFTERNOON.

ANY TIME YOU'RE WORKING IN GROUPS OR INDIVIDUALLY, BUT YOU START TO COME TO LIKE, WOW, THIS SEEMS REALLY DIFFICULT.

WE NEED TO LOOK FOR SOLUTIONS OR LET'S LOOK FOR SOME OF THE WINS, THAT SORT OF THING.

IF YOU SORT OF SET THAT AS SOMETHING THAT YOU'RE LOOKING FOR INTENTIONALLY, IT'LL TRIGGER YOUR CONFIRMATION BIAS AND LEVERAGE IT FOR A GOOD PURPOSE TO KIND OF TUNE IN THE FOCUS THERE A LITTLE BIT MORE.

SO SOMETHING KIND OF FUN IF YOU WANT TO TRY PLAYING WITH THAT.

WE ARE ON TO THE BOND COMMITTEE UPDATE SHANNON, YOUR NAME IS NEXT TO THIS ONE.

ARE YOU READY TO JUMP ON IT? I AM, NICOLE, THANK YOU VERY MUCH.

WE WANT TO GO AHEAD AND PROCEED TO THE NEXT SLIDE.

THE BOND COMMITTEE IS CONSIDERING AND PREPARING TO MAKE A RECOMMENDATION TO COUNCIL RELATED TO PUBLIC INFRASTRUCTURE, HOUSING AND CLIMATE ACTION.

ALL THREE OF THE AREAS THAT HAD BEEN PREVIOUSLY IDENTIFIED BY OUR CITY COUNCIL MEMBERS.

THIS COMMITTEE BEGAN MEETING ON NOVEMBER 22ND.

THEIR FIRST THREE MEETINGS WAS REALLY SPENT TRYING TO GET TO KNOW EACH OTHER.

ADOPTING A TEAM CHARTER.

THEY ELECTED THEIR CHAIR AND THEIR VICE CHAIR.

THEIR CHAIR IS CHARLIE ODEGAARD AND THEIR VICE CHAIR IS AL WHITE.

NAMES I'M SURE THAT YOU ARE FAMILIAR WITH AS THEY BOTH HAVE SERVED PREVIOUSLY ON CITY COUNCIL, AND THEY SET A MEETING SCHEDULE FOR THE PRESENTATIONS TO COME BEFORE THEM FROM CITY STAFF. SO AFTER THE HOLIDAYS, WE KICKED OFF RIGHT ON JANUARY 6TH AND CITY STAFF BEGAN PRESENTING INFORMATION ABOUT GENERAL OBLIGATION BONDS, CITY DEBT AND OUR FISCAL RESPONSIBILITY, PUBLIC INFRASTRUCTURE FOR PUBLIC SAFETY AS WELL AS WASTEWATER.

WE'RE GOING TO CONTINUE THESE PRESENTATIONS IN THE MONTH OF FEBRUARY, ALL THE WAY THROUGH MARCH 3RD, AND THOSE GOING ARE GOING TO INCLUDE THE STORM PRESENTATION, TWO MEETINGS, FOUR HOUSING AND TWO MEETINGS FOR CLIMATE ACTION, BECAUSE IN BOTH OF THOSE TOPICS HAVE MULTIPLE COMPONENTS TO THEM, AND WE WANT TO DEDICATE ENOUGH TIME SO THAT WE CAN PRESENT A THOROUGH AMOUNT OF INFORMATION TO THE COMMITTEE MEMBERS FOLLOWING THESE PRESENTATIONS.

WE ARE GOING TO CONDUCT A COMMUNITY SURVEY WITH THE ASSISTANCE OF NEW POINT MARKETING.

[03:20:04]

THE OTHER COMPONENT THAT WE'VE BEEN WORKING HARD ON IS MAKING SURE THAT WE HAVE ENOUGH COMMUNICATION EFFORTS PUT IN PLACE THE PREVIOUS MEETINGS, WE HAVE THE RECORDINGS, THE AGENDA, THE PRESENTATIONS, AS WELL AS SUPPLEMENTAL INFORMATION AVAILABLE ON THE CITY'S WEBSITE. SO IF ANYONE HAS BEEN UNABLE TO ATTEND THE MEETINGS BUT THEY'RE INTERESTED IN LEARNING MORE ABOUT THESE TOPICS, THEY CERTAINLY CAN VIEW THE INFORMATION THERE.

OR IF THEY WANT TO BE MORE ENGAGED, THEY CAN ACTUALLY JOIN US FOR THESE MEETINGS.

WE POST THE LINKS ON THE AGENDAS, SO ALL THEY HAVE TO DO IS CLICK AND JUMP RIGHT IN TO THE MICROSOFT TEAMS MEETING.

WE ARE WORKING WITH PUBLIC AFFAIRS TO CREATE A METHOD FOR THE PUBLIC TO WRITE IN PROVIDE INPUT. THIS MAY BE IN THE FORMAT OF A FORM ADDED TO THIS WEB PAGE OR SOME OTHER COOL FEATURE. I'M SURE THEY'LL FIGURE OUT.

SO LOOKING FORWARD TO HEARING WHAT THAT MIGHT LOOK LIKE IN OUR UPCOMING MEETINGS NEXT WEEK. AND THE GOAL OF THAT INPUT IS TO FIND OUT AGAIN WHAT'S MOST IMPORTANT TO OUR COMMUNITY AS WE CONSIDER POTENTIAL BOND PROJECTS MOVING FORWARD.

AND THEN AGAIN, THIS AMAZING PUBLIC AFFAIRS STAFF, BOTH SARAH LANGLEY AS WELL AS SAMANTHA VICTOR, GOES BY SAYING, IN CASE YOU HAVEN'T HAD THE OPPORTUNITY TO INTERACT WITH HER YET, THEY ARE WORKING ON A COMMUNICATION PLAN.

THIS COMMUNICATION PLAN IS GOING TO INCLUDE EDUCATION ON TOPICS SUCH AS WHAT IS A BOND? I KNOW WHEN THEY MENTIONED THIS ME TO THIS, WHEN THEY MENTIONED THIS TO ME, I GOT REALLY EXCITED BECAUSE IT REMINDED ME OF THE LITTLE BILL GUY THAT WALKED DOWN THE STAIRS ON PBS WHEN HE TALKED ABOUT BEING A BILL ON CAPITOL HILL.

SO I THINK IT'LL BE FUN TO BE ABLE TO DO WHAT IS A BOND ON BEHALF OF OUR ORGANIZATION.

YES, IT COULD HAVE BEEN VHS COUNCIL MEMBER SHIMONI, BUT AGAIN THEY ARE LOOKING AT USING BOTH VIDEO AND SOCIAL MEDIA.

SO WE WILL BE SURE TO HAVE SOME GREAT OUTREACH SO OUR COMMUNITY KNOWS WHAT WE'RE WORKING ON AND WE HAVE AN OPPORTUNITY TO REALLY HEAR WHAT'S IMPORTANT TO THEM.

SO THAT'S OUR UPDATE AS OF TODAY, YOU KNOW, THIS TEAM CONTINUES TO WORK HARD TOWARDS GETTING TO THE RECOMMENDATION THAT WILL COME BEFORE COUNCIL IN JUNE.

AS YOU CAN TELL, WE'RE WE'RE STILL PRESENTING AT THIS POINT, BUT WE'RE GOING TO HAVE RESEARCH INFORMATION IN THE FORM OF SURVEYS AGAIN, OUTREACH AND INPUT FROM OUR COMMUNITY MEMBERS SO THAT THEY CAN REALLY GO THROUGH A PROCESS OF DETERMINING WHAT THEY'D LIKE TO RECOMMEND FOR THE NOVEMBER ELECTION.

SO THAT'S WHERE WE ARE CERTAINLY HAPPY TO ANSWER ANY QUESTIONS OR EVEN HEAR ANY FEEDBACK THAT FOLKS MIGHT HAVE TO SHARE.

ALL RIGHT. COUNCIL MEMBERS, ANY COMMENTS, QUESTIONS, FEEDBACK? YEAH. I'LL JUST JUMP IN HERE AND THIS MAY GO WITHOUT SAYING, BUT WE HAVE A LOT OF FEDERAL MONEY THAT HAS IS BEING FORMED NOW AND OBVIOUSLY THE REGULATIONS AS SUCH AND CRITERIA ARE STILL IN DEVELOPMENT IN A LOT OF CASES.

BUT I HOPE THAT WHEN WE MOVE FORWARD WITH THIS BOND, WE BONDS THAT WE ARE ENSURING THAT WE CAN MAXIMIZE MATCHING DOLLARS.

I KNOW, FOR EXAMPLE, WASTEWATER, FOR EXAMPLE, IS NOT A SALIENT ISSUE.

PEOPLE DON'T REALIZE THAT WE ARE AT MAX CAPACITY RIGHT NOW WITH IT AND THAT I JUST WANT US TO BE IN A GOOD POSITION THAT'S BOTH FLEXIBLE AND TRUE TO WHAT THE OUR CONSTITUENTS WANT, THAT WE ARE SETTING UP BONDS IN A WAY THAT ARE GOING TO MAXIMIZE THIS ONCE IN A LIFETIME DOLLARS COMING UP FROM THE FEDERAL GOVERNMENT, AS WELL AS SOME MATCHING DOLLARS FROM THE STATE GOVERNMENT.

SO I JUST WANTED TO PUT THAT OUT THERE BECAUSE I WOULD REALLY, REALLY HATE IF WE PUT OUT A BOND MEASURE SPECIFICALLY FOR STORM WATER, FOR EXAMPLE, THAT THEN OH WAIT, THERE WAS A ONE TO 10 MATCH FOR WASTEWATER.

NOW, ALL OF A SUDDEN, AND WE COULD HAVE HAD $50 MILLION TO HELP WITH OUR WASTEWATER, WITH ONLY FIVE MILLION DOLLARS SET ASIDE TO BE ABLE TO MATCH WITH.

SO I JUST I WANT US AND I UNDERSTAND THAT THE BOND COMMITTEE DEFINITELY HAS BEEN HEARING SOME OF THE MATCHING DOLLARS, BUT I HOPE THAT THAT IS PRESSED TO THE COMMITTEE THAT LET'S

[03:25:05]

WE'VE BEEN TALKING IN OUR TEAM MEETINGS BETWEEN NEW POINT AND CITY STAFF THIS WEEK ON THE NEED TO BE FLEXIBLE BECAUSE WE MAY NOT KNOW EXACTLY WHAT FEDERAL DOLLARS WE WILL RECEIVE.

AND SO WE WILL BE PULLING IN SOME LEGAL EXPERTISE TO REALLY HELP US ON THE WORDING TO BE ABLE TO CREATE THAT FLEXIBILITY TO WHERE IF WE'RE ABLE TO GET FUNDING FOR SOMETHING THAT CAN COME OFF THE LIST, BUT THEN WE'RE ABLE TO SPEND THAT MONEY ELSEWHERE, AND IT WOULDN'T HAVE TO JUST SIT BECAUSE IT WAS TOO SPECIFIC TO CERTAIN PROJECTS.

SO THANK YOU FOR THAT FEEDBACK.

THANK YOU. I WOULDN'T EXPECT ANY DIFFERENTLY FROM YOU, SHANNON, OR ANYONE ELSE NOT TO DEFINITELY HAVE THAT ON YOUR RADAR.

I JUST WANTED TO HELP REINFORCE WHAT, YEAH, THE PROCESS.

SO THANK YOU. RIGHT, COUNCIL MEMBER SHIMONI.

THANK YOU, NICOLE, AND HAVE YOU SEEN ANDREW ANDERSON, THANK YOU, SEA MANAGER.

THANK YOU. AND TO OUR BOND COMMITTEE MEMBERS, THANK YOU ALL.

I KNOW THIS HAS BEEN QUITE AN EFFORT AND I AM SO EXCITED ABOUT THIS EFFORT AND TO LEARN ABOUT WHAT COMES OUT OF THIS COMMITTEE'S CONVERSATION TO US.

AND JUST WANTED TO EXPRESS GRATITUDE TO EVERYBODY INVOLVED AND EXPRESS GRATITUDE, ESPECIALLY FOR THE OUTREACH PLAN.

I'M REALLY LOOKING FORWARD TO THAT VHS.

I MEAN, SOCIAL MEDIA VIDEO THANK YOU.

AND I WOULD ADD MULTILINGUAL AGAIN IF WE CAN GET DIVERSITY IN THOSE ON CAMERA AND THOSE SPEAKING, I THINK THAT WOULD BE REALLY AWESOME IF WE CAN TRY TO BE INCLUSIVE, MAYBE IN ONE VIDEO, THANK YOU MAYOR I SEE YOU SUPPORTING THAT? YOU KNOW, WE COULD DO SEPARATE VIDEOS IN DIFFERENT LANGUAGES, BUT IF WE CAN SOMEHOW DO ONE THAT IS MULTILINGUAL IN ITS NATURE AND USE THAT TO BUILD FROM IN THE FUTURE, THAT'D BE SO COOL. THANK YOU.

MY WORK WOULD BE DONE.

ALL RIGHT. ANY OTHER QUESTIONS, COMMENTS FROM COUNSEL? OK. IGNORING THE VHS CONVERSATION.

SHANNON, I THINK YOU ARE GOOD TO GO.

ALL RIGHT. SO YOU'RE WELCOME.

LET'S MOVE ON TO FEDERAL FUNDING UPDATE.

WE HAVE STACEY, SARAH, VARNEY AND BRIAN, AND I APPRECIATE THE SERIAL ALLITERATION THERE.

THANK YOU FOR SATISFYING THAT DESIRE OF MINE.

AND WE WILL LET YOU FABULOUS FOLKS TAKE OVER.

ALL RIGHT, THANK YOU.

HI, MAYOR AND COUNCIL AND CITY STAFF THAT ARE ONLINE TODAY.

STACEY BRECHLER-KNAGGS, GRANTS AND CONTRACTS MANAGER AND EXCITED TO SHARE WITH OUR TEAM.

LIKE I SAID, I'LL TALK FIRST AND THEN I'LL TURN IT OVER TO SHARON LANGLEY AND THEN BARNEY AND BRIAN, SO WE'LL GO AHEAD AND NEXT SLIDE.

SO LITTLE UPDATE ON THE CORONAVIRUS, STATE AND LOCAL FISCAL RECOVERY FUNDS, AS YOU KNOW, THESE FUNDS REMAIN AS A LIFELINE FOR LOCAL GOVERNMENTS AND THE COMMUNITY.

THERE WAS A NEW FINAL RULE RELEASED IN THE FIRST OF JANUARY THAT PROVIDED KIND OF A BROADER FLEXIBILITY AND GREATER SIMPLICITY TO THE PROGRAM.

THEY HAD NEW CONTACT THAT WAS AIMED AT PROVIDING GREATER CLARITY AND DIRECTION, AND THEIR INTENT WAS REALLY WHICH IS HELPFUL TO THE CITY, WHICH HAS BEEN VERY HELPFUL TO HELP MINIMIZE THE ADMINISTRATIVE BURDEN AND IN RECOGNITION THAT THOUSANDS OF LOCAL GOVERNMENTS CONTINUE TO OPERATE AT A LEVEL OF REDUCED CAPACITY.

THIS ADMINISTRATIVE BURDEN WILL ALSO HELP OUR RECIPIENTS AND WILL HELP OUR CITY STAFF AS WE AS WE CONTINUE TO PURSUE THESE FUNDS AND TO GET THEM OUT IN THE COMMUNITY.

SO WHAT THE FINAL RULE DID? IT ACTUALLY ALLOWED FOR A STANDARD ALLOWANCE FOR THE REVENUE LOSS REPLACEMENT OF UP TO 10 MILLION TO SPEND ON GOVERNMENT SERVICES? SO THAT'S HUGE AND THAT'S WHERE WHERE WE'RE GETTING TO SEE WHERE THIS ADMINISTRATIVE BURDEN WILL BE REDUCED BY APPLYING THIS 10 MILLION STANDARD ALLOWANCE.

SO NEXT SLIDE.

UM, SO SPENDING ON THE GOVERNMENT SERVICES GENERALLY INCLUDES ANY SERVICE TRADITIONALLY PROVIDED BY A GOVERNMENT.

[03:30:01]

SO IT REALLY REDUCES THAT LEVEL OF COMPLIANCE OR REPORTING IF WE CAN GO AHEAD AND GO WITH THE STANDARD 10 MILLION ALLOWANCE AND UTILIZING THIS AS EFFECTIVENESS AND EFFICIENCY AND DELIVERING THE COUNCIL DIRECTED PROGRAMS, THAT ALLEVIATES THE ADMINISTRATIVE BURDEN, AS I'VE MENTIONED BEFORE.

PROCUREMENT RESTRICTIONS WELL STILL.

FOLLOW OUR LOCAL PROCUREMENT CODE OF CODE OF COURSE, WE'LL HAVE TO DO THAT LIMITED ON THE COMPLIANCE, AUDIT RISK AND EXTENSIVE REPORTING.

HOWEVER, BY TAKING THIS $10 MILLION ALLOWANCE THAT DOESN'T ALLEVIATE OUR COMMITMENT THAT WE'VE SAID TO THE PROJECT ALLOCATIONS THAT THEY WILL BE PRESERVED IN WHAT THE COUNCIL HAS RECOMMENDED BACK.

I GUESS IT WAS IN OCTOBER.

WE'VE HAD A COUPLE OF SESSIONS ON THIS ALLOCATION, BUT WE WILL CONTINUE TO MAKE THAT COMMITMENT, WILL CONTINUE TO ACCOUNT FOR, REPORT FOR IT AND TRACK FOR IT.

SO THIS NEXT SLIDE WILL SHOW A LITTLE BIT MORE AND WHERE THE DIRECTION THAT WE'RE HEADED.

SO HOPEFULLY YOU COULD SEE THAT THERE'S TWO COLUMNS HERE, SO THE ALLOCATION STILL HOLDS, SO NOTHING'S CHANGED.

WE HAVEN'T DONE ANYTHING TO REDUCE IT OR CHANGE IT.

ALL WE'VE DONE IS MOVE THE ALLOCATIONS, EXCUSE ME, TO THE $10 MILLION REVENUE REPLACEMENT COLUMN. SO AS WE GO THROUGH THESE LINE ITEMS, WE WILL HAVE SOME TIME TO ASK SOME QUESTIONS AT THE END. BUT LET ME CONTINUE ON THIS SLIDE TO KIND OF SHARE THE THOUGHTS OF WHAT OUR INTERNAL TEAM HAS.

CORE TEAM HAS TALKED ABOUT IN THE BUDGET TEAM.

THIS HAS BEEN PRESENTED TO THE BUDGET TEAM A WEEK AGO AND AND THEY WERE DEFINITELY ON BOARD WITH HOW WE ARE ALLOCATING AND USING THE 10 MILLION REVENUE REPLACEMENT.

SO CONGREGATE CARE.

YOU RECENTLY SAW SOME CONTRACTS ISSUED TO LIKE SHELTER SERVICES.

THE NOTIFICATION FOR ANNOUNCEMENT IS OUT NOW.

THAT IS ALONG WITH THE COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.

SO CONGREGATE CARE SOLICITATION IS OPEN AND PEOPLE ARE STARTING TO APPLY FOR THOSE FUNDS.

AND HOUSING IS ADMINISTERING THAT THE HOUSING STAFF ARE EXCELLENT IN ADMINISTERING FEDERAL COMPLIANCE AND FEDERAL FUNDS.

THEY DO IT QUITE A BIT ON THE HUD CDBG PROGRAM, SO THEY'RE THEY'RE VERY SKILLED AT IT.

THEY WORK CLOSELY WITH OUR STAFF AND THEY DO AN EXCELLENT JOB WITH IT.

SO WE REALLY FELT THAT THE WE WANTED TO KEEP THESE IN IN THE FEDERAL SIDE, IN THE ARPA FUNDS. THE TWO POINT FOUR SHANNON'S MET WITH US AND A LOT OF YOU ARE VERY FAMILIAR WITH THIS ALTERNATE CARE.

IT'S VERY COMPLEX.

THERE'S A LOT OF MOVING PARTS, A LOT OF AGENCIES INVOLVED IN IT.

AND SO WE MOVED THAT TO THE NONFEDERAL, WHICH WILL ALLOW FOR THE LESS RESTRICTIONS BUT CONTINUE TO MAKE THE COMMITMENT, AS WE SAID, TO COUNSEL FOR THE TWO POINT FOUR TO THIS PROJECT. THE COMMUNITY AMBASSADOR AND ASSISTANCE AND MENTAL HEALTH, WE'VE LEFT THAT IN THE ARPA FUNDS, WE'RE NOT SURE IF THAT'S GOING TO BE AN INTERNAL STAFF MEMBER OR IF THAT'S GOING TO BE ADMINISTERED BY AN OUTSIDE AGENCY.

BUT WE'RE IN CONVERSATIONS AGAIN WITH SHANNON AND HER TEAM, AND WE'VE KEPT THAT IN HOUSE ON THE ARPA FUNDS AND DOESN'T HAVE A LOT OF REPORTING REQUIREMENTS, SO WE FELT THEY CAN STAY ON THAT SIDE OF THE COLUMN.

AGAIN, A SHOUT OUT THANKS DAN.

I AGREE TO THE HOUSING STAFF.

THEY'RE VERY, VERY GOOD IN PROCESSING AND WORKING WITH FEDERAL FUNDS.

AND SO WE'VE KEPT THE ONE POINT NINE THERE, AND SO IT'S STILL IN THE FEDERAL SIDE OF IT.

AND WE'LL BE SENDING OUT AN ANNOUNCEMENT, I THINK, SOON AFTER THIS AGENDA, AFTER COUNCIL APPROVAL ON THESE ALLOCATIONS.

IN THIS PROCESS, WE'LL BE ANNOUNCING THOSE FUNDS IN A NOTICE FUNDING ANNOUNCEMENT AND SO MANY NONPROFITS AND OTHERS CAN SUBMIT FOR THOSE FUNDS.

JOB TRAINING ASSISTANCE, WE'VE KEPT THAT ALSO IN-HOUSE.

WE HAVE SOME EXCELLENT STAFF AND AN ECONOMIC VITALITY.

I KNOW JOHN SALTONSTALL HAS BEEN ON THE WORKFORCE DEVELOPMENT BOARD AND WORKED CLOSELY WITH THE COUNTY, AND SO WE FELT LIKE THIS WAS A GOOD PLACE TO KEEP THOSE FUNDS IN-HOUSE AND TO MAYBE LEVERAGE WITH THE COUNTY ON WORKFORCE DEVELOPMENT AND JOB TRAINING.

AND THEN WE'LL MOVE OVER TO THE NEXT COLUMN.

THANKS, IS THAT YOU, RICK, WITH THE LITTLE RED DOT? THANK YOU FOR MOVING ALONG WITH ME.

AND SO THE SMALL BUSINESS GRANTS, THOSE WILL AGAIN STILL BE AN ALLOCATION, AND WE'LL WORK

[03:35:06]

ARTS AND SCIENCE, THE 150 WE'RE LOOKING AT WORKING WITH CREATIVE FLAGSTAFF ON THOSE FUNDS AND WILL BE WORKING TO POTENTIALLY AMEND THEIR CONTRACT AND TAKE BRING THIS BACK TO COUNCIL AND WORK WITH CURRENTLY DO WITH OUR ARTS AND SCIENCE FUNDS.

SO IT WILL BE IN THE SAME LIGHT AS COMPETITIVE AND OPEN, BUT WOULD WORK WITH CREATIVE FLAGSTAFF FOR THAT.

THE 300000 AND THE 150 FOR THE FOOD IN NONPROFITS.

THE INTENT IS TO CONTINUE THE WORK WITH UNITED WAY AND AMEND THEIR CONTRACT AND WORK TO SEE IF WE CAN ALLOCATE THOSE FUNDS TO THEM.

AND AND THEN THEY WOULD DO THE SAME SIMILAR PROCESS.

THEY WOULD OPEN IT UP FAIR AND COMPETITIVELY SIMILAR.

THEY DO THEIR COMMUNITY INVESTMENT FUNDS FOR THE NONPROFITS.

UM, AND THERE WERE TO THE 300 VICTIMS SERVICES.

AND AGAIN, SHOUT OUT TO OUR HOUSING STAFF.

THEY WILL DO A SOLICITATION AGAIN AND A FUNDING ANNOUNCEMENT.

THEY'RE LOOKING AT DOING THIS IN THE SPRING.

SPRING, MAYBE SUMMER TO FALL ACTUALLY MIGHT BE INCORRECT.

MAYBE THEY'RE LOOKING AT FALL FOR THAT BECAUSE THEY'RE GOING TO RIGHT NOW, THE CARES OUT, THEY'RE GOING TO HIT THAT ONE POINT NINE HERE IN THE SPRING AND IN THE FALL.

THE VICTIM SERVICES FUNDS ANNOUNCEMENT WILL GO OUT AND WE'LL WE'LL GET NONPROFITS TO SUBMIT FOR THAT. THE AID TO TRAVEL AND TOURISM WILL MOVE TO THE 10 MILLION NON-REVENUE REPLACEMENT COLUMN, AGAIN, THAT'S SO THAT WE HAVE LESS RESTRICTIONS, BUT WE'LL WORK WITH CVB AND VISITOR CENTER AND TRACE BOARD AND HIS TEAM AND AND HEIDI ON THOSE FUNDS AND TO GET THOSE OUT TO TWO AGENCIES THROUGH THROUGH A SOLICITOR COMPETITIVE SOLICITATION.

NEXT REAL QUICK IS THE LOCAL SUPPORT.

YOU COUNSEL HAS SUPPORTED THIS IN THE PAST FOR THE PERMITS.

WE'VE ALREADY SPENT MONEY OUT OF THAT FUND CURRENTLY, SO IT MAKES SENSE TO KEEP IT IN THE ARPA AND WE'RE LOOKING AT EXTENDING ALL OF IT.

REBECCA SAID. HOPEFULLY BY THIS SUMMER SO THAT THAT EIGHTY FIVE THOUSAND WOULD GET EXPENDED HERE SOON BY THE END OF THE SUMMER, WHICH IS GREAT NEWS, HEIDI.

KIND OF TALK TO YOU A LITTLE BIT ABOUT SUPPORT OF FILLING VACANCIES.

EXCELLENT PRESENTATION EARLIER ON HOW WE'RE DOING RECRUITMENT.

AND SO HEIDI'S ON THIS, SHE'S VERY PROACTIVE AND TRACKING THIS AND WORKING HARD WITH HER TEAM TO OVERSEE THESE FUNDS AND SPEND THIS 100000 TO HELP THE CITY.

SO THAT'S EXCITING.

AND SO THAT'S WHY IT'S SITTING IN THE FRONT SIDE.

UM, EDUCATION ASSISTANCE, WE HAVE LEFT THIS ON THE FEDERAL COLUMN SIDE, AND THERE IS A SMALL TEAM THAT IS STARTING TO MEET IN A WEEK OR TWO.

AND TO BEGIN HOW WE ARE GOING TO USE THIS, THIS MONEY AND THAT RIGHT NOW THE EDUCATION ASSISTANCE WE'RE LOOKING AT PROVIDING THAT TO UNITED WAY AGAIN.

BUT IT WILL BE THROUGH A COMPETITIVE PROCESS AND AND SOLICITED SEPARATE WITH THE ARPA FUNDS. THE EDUCATION ASSISTANCE HERE THE FACILITY IS IS GETTING THE TWO OF THEM, THEY'RE CLOSE IN NUMBERS, BUT THE 350, WE HAVE ANOTHER TEAM MEETING ON THIS.

GREG HAS BEEN HIGHLY INVOLVED WITH THIS AND MAYBE AT THE END OF THIS, GREG, IF YOU DO WANT TO SHARE ANYTHING THAT I MIGHT HAVE MISSED ON THIS ONE, BUT WE ARE GETTING READY TO TALK AS A TEAM ON HOW WE'RE GOING TO USE THIS MONEY TO LOOK AT FACILITY CONSTRUCTION FOR EDUCATION PROGRAMS AND POTENTIALLY SOME SITES THAT WE CAN GET SOME ENGINEERS ESTIMATES ON TO SEE WHAT IT'S GOING TO TAKE TO MAYBE REHAB SOME OF OUR SITES AND AND GET THEM TO THE POINT THAT THEY'RE READY TO GO FOR A SERVICE PROVIDER TO SOLICIT TO TO BE TO USE THE FACILITY. SO THOSE THOSE DISCUSSIONS ARE IN PLACE.

PREMIUM PAY YOU'VE BEEN HEARING ABOUT THIS H.R.

AND PUBLIC SAFETY HAS BEEN A HUGE BENEFIT TO OUR STAFF FOR THIS AND WE'VE BEEN USING THIS FOR QUITE A WHILE WHILE THEY'VE BEEN STARTING IT.

AND SO IT'S MOVED TO THE NONFEDERAL SIDE OF THE HOUSE, THE 10000000 SIDE, JUST BECAUSE WE

[03:40:04]

DRINKING WATER THIS IS ANOTHER ONE.

I KNOW THAT THE MAYOR AND EVERYBODY'S BEEN REALLY INTERESTED IN BROADBAND, THAT WE HAVE SUPPORTED A NUMBER OF GRANTS THAT ARE GOING OUT.

YES, AND THIS IS GOING TO BE HUGE AND WE MOVED IT OUT OF THE ARPA FUND.

SO IT'S A LITTLE BIT MORE FLEXIBLE FOR US TO ADMINISTER IN HOUSE, TO DO A PROJECT TO MATCH A POTENTIAL 10 MILLION PROJECT.

THAT'S SOME SERVICE PROVIDERS HAVE BEEN OUT THERE APPLYING FOR OTHER INFRASTRUCTURE GRANTS THAT WE HAVE COMING UP WITH THE NEW INFRASTRUCTURE BILL THAT SARAH WILL TALK A LITTLE BIT ABOUT. AND SO THIS ONE POINT FIVE WILL GIVE US THAT FLEXIBILITY TO USE WITHOUT THE RPA RESTRICTIONS.

AND THEN LASTLY, IS THE REVENUE REPLACEMENT? AND THEN AND RICK, YOU CAN ADD ANYTHING LATER AS SOON AS THEY END HERE, IF THERE'S ANYTHING ON THAT.

AND THEN WE MOVED SOME MONEY OUT OF THE ADMINISTRATIVE POT TO COVER THE CREATIVE FLAGSTAFF AND UNITED WAY'S ADMINISTRATIVE TIME IN THAT NON-REVENUE.

AND THEN MORGAN MELANIE WAS CURRENTLY OVERSEEING THE ARPA.

SHE STILL IS, BUT SHE IS NOW MOVED TO MY STAFF AS MORE OF A GRANTS POSITION TO HELP AND STILL OVERSEE ARPA, BUT MAY NOT NEED AS MUCH OF THE ADMINISTRATIVE TIME AT THE GOING ON. SO I GUESS THE BIG THING IS YOU COULD SEE WHERE WE'RE HEADING THAT 10 MILLION, WHICH IS GREAT, AND THEN THE ARPA MONEY IS THE 3.2, AND WE WILL CONTINUE TO MAKE A COMMITMENT TO MAKE SURE ALL THESE PROGRAMS ARE TRACKED AND REPORTED BACK TO YOU.

WE WILL WORK ON THAT REPORTING.

SO WITH THAT, I AM GOING TO, I GUESS, RICK, DO YOU WANT TO STOP FOR ANY QUESTIONS ON THIS PORTION OR MOVE ON? I'M OK IF WE WANT TO PAUSE AND SEE IF COUNCIL HAS ANY QUESTIONS ON THE ARPA FUNDS.

GREAT. MAYOR DEASY.

YEAH. SO YOU MAY HAVE MENTIONED THIS, I JUST WANTED TO SEE REGARDING THE REVENUE REPLACEMENT THAT'S NOW SOLID NUMBERS, CORRECT? OR IS THAT POTENTIALLY CHANGING? THE THREE POINT EIGHT MILLION, YES.

UH, YEAH, THAT'S THE NUMBER THAT'S THAT WE ARE STILL RESERVING, AS YOU RECALL THAT NUMBER WAS IN THE $9 MILLION NUMBER PRIOR TO MEETING WITH COUNCIL AND DISCUSSING THE ALLOCATION TO PROGRAMS. THESE WERE BUDGET ITEMS THAT WE PUT IN THE CURRENT YEAR BUDGET, UP TO THAT $9 MILLION NUMBER FOR OTHER THINGS THAT DIDN'T GET FUNDED IN THE PREVIOUS BUDGET PROCESS, BUT WE STILL WANTED TO MOVE FORWARD WITH.

SO THE BUDGET TEAM IS GOING TO LOOK TO SEE, HOW DO WE NOW THAT WE'RE TRIMMED DOWN TO THREE POINT EIGHT AND THAT IS FIRM BECAUSE WE ONLY CAN USE 10 MILLION FOR REVENUE LOSS.

THAT'S BASICALLY THE DIFFERENCE BETWEEN EVERYTHING ELSE.

BUT BUDGET TEAM WILL MEET TO DECIDE WHAT ITEMS REALLY GET TO MOVE FORWARD.

AS AS YOU MAY RECALL LAST APRIL IN HERE, WHERE THINGS LIKE SOME HOUSING FUNDS, CLIMATE ACTION, THERE WAS MONEY FOR FIBER IN THAT POT.

THERE WAS MONEY TO REPLACE STREETS VEHICLES BECAUSE THEIR FUNDS WERE IMPACTED.

SO WE'VE GOT TO SCALE DOWN WHAT WE'RE USING THIS THREE POINT EIGHTY FOUR IN THE COMING WEEKS. SO YEAH, WE'RE PRETTY COMMITTED TO THAT NUMBER.

COOL, GOOD TO KNOW. I JUST I WAS LOVING THE LAST YEAR SEEING THAT NINE MILL TURN INTO SIX MILL TURN INTO THREE POINT EIGHT MILL.

AND BUT YEAH, SO YEAH, SINCE THAT IS FIRM, THAT WAS MY QUESTION.

SO I APPRECIATE THE ANSWER.

THANKS. ALL RIGHT.

GREG. THANK YOU, STACEY, THANK YOU FOR THE PRESENTATION.

PARDON ME. WELCOME, YEAH, THANKS.

I WANTED TO CIRCLE BACK ON WHAT STACEY TOUCHED ON.

UM, WITH RESPECT TO THE EDUCATION ASSISTANCE.

SO JUST TO PUT A LITTLE MORE DETAIL INTO THAT, YEAH, THERE IS A TEAM MEETING ON THAT IS PRETTY EXCITING. PUBLIC WORKS IS INVOLVED IN THIS AT A COUPLE OF LEVELS, ALONG WITH STACEY AND PROCUREMENT IN MY OFFICE AND OTHERS.

[03:45:08]

THE FOCUS ON THIS POTENTIAL FACILITY IS THE JOE MONTALVO LOCATION AND SPECIFICALLY THE OLD FIRE STATION THERE THAT WE'VE TALKED ABOUT.

THE 350000 AS ALLOCATED ALMOST ASSUREDLY MEANS THAT WE WILL BE LOOKING FOR SOME SORT OF PARTNERSHIP ON THIS.

IT MAY BE MORE THAN ONE PARTNERSHIP, AND IT WILL BE A COMPETITIVE PROCESS FOR SURE.

BUT A COUPLE OF SCENARIOS COULD PLAY OUT.

ONE WOULD BE THAT MAYBE WE HAVE ENOUGH HERE TO BUILD A SHELL OF A BUILDING AND WOULD INVITE SUCCESSFUL SUBMITTERS TO PARTNER UP AND PROVIDE TENANT FINISHES OF SOME SORT TO ACCOMMODATE THE OPERATIONS SERVICES THAT THEY PROVIDE.

ANOTHER ONE WOULD BE.

AND THIS COULD BE IN TANDEM WOULD BE TO MAYBE WORK WITH LOCAL DEVELOPER WHO WOULD HAVE AN INTEREST IN SEEING US DEVELOP A CITY OWNED PARCEL FOR THESE VALUABLE SERVICES AND WOULD CONTRIBUTE IN-KIND, PERHAPS.

SO THERE'S A NUMBER OF POSSIBILITIES HERE.

THEY'RE ALL EXCITING. WE'RE STILL ON THE FRONT END OF THIS ONE.

WE'LL BE REPORTING BACK TO COUNCIL.

I JUST WANTED TO PROVIDE A LITTLE MORE DETAIL.

THANK YOU. THANKS, GREG, AND YES, SO IF WE DON'T HAVE ANY MORE QUESTIONS.

TURN IT OVER TO SARAH.

SHE'S GOING TO GO AHEAD AND TALK ABOUT THE INFRASTRUCTURE BILL AND SARAH, BEFORE YOU START JUST TO THE MAYOR COUNCIL, I AM DEALING PROBABLY DAILY OR WEEKLY A WEBINAR ON INFRASTRUCTURE BILL AND REALLY, REALLY TRACKING THIS.

SO. AND SARAH'S BEEN VERY INSTRUMENTAL AND WORKING WITH BOB HOLMES AND OTHERS TO HELP TRACK THIS FUND, AND WE RECENTLY RAISED GRANT JUST CAME OUT.

WE'VE ALREADY GOT A MEETING SET UP NEXT WEEK TO BEGIN ROLLING OUT HOW WE'RE GOING TO APPLY FOR THAT RAISE GRANT.

SO IT'S EXCITING, EXCITING TIMES.

THANK YOU. AND TAKE IT AWAY, SARAH.

THANK STACEY, INDEED, VERY EXCITING TIMES.

GOOD AFTERNOON, MAYOR AND COUNCIL.

SARAH LANGLEY, PUBLIC AFFAIRS DIRECTOR.

I'M HERE TO PROVIDE YOU WITH A QUICK UPDATE ON THE INFRASTRUCTURE INVESTMENT AND JOBS ACT IIJA, WHICH HAS NOW BEEN ENACTED AS THE BIPARTISAN INFRASTRUCTURE LAW.

SO WE WILL BE CALLING IT THE BILL MOVING FORWARD.

I THINK THAT'S A BIT NICER ACRONYM THAN IIJA.

AS YOU KNOW, THE BILL WAS SIGNED INTO LAW BY PRESIDENT BIDEN LAST FALL, AND SINCE THEN WE'VE BEEN ANXIOUSLY AWAITING NEWS AND UPDATES ON WHAT THIS COULD MEAN FOR FLAGSTAFF.

THE BILL IS THE LARGEST LONG TERM INFRASTRUCTURE INVESTMENT AND REALLY OUR HISTORY, AND IT PROVIDES $550 BILLION THROUGH FISCAL YEAR 26 FOR ROADS, BRIDGES, MASS TRANSIT, WATER INFRASTRUCTURE, RESILIENCY AND BROADBAND.

AND WE ARE, OF COURSE, YOU KNOW, STILL WAITING FOR FURTHER INFORMATION TO BE RELEASED, BUT WE DO HAVE SOME UPDATES TO SHARE WITH YOU TODAY.

FIRST, IN DECEMBER, THE FEDERAL HIGHWAY ADMINISTRATION, WHICH IS THE AGENCY CHARGED WITH IMPLEMENTING THE MAJORITY OF THE LEGISLATION, ISSUED A POLICY MEMORANDUM, AND THAT MEMORANDUM GAVE US SOME ADDITIONAL GUIDANCE ON THE BILL AND WAS SORT OF A SNEAK PEEK INTO HOW THEY WILL BE INTERPRETING AND IMPLEMENTING THE LEGISLATION.

THE FHWA IS UTILIZING AN EQUITY LENS AND IS FOCUSED ON BUILDING INFRASTRUCTURE THAT WILL SERVE AMERICA FOR MANY DIFFERENT OR MANY COMING GENERATIONS.

THEY'RE ALSO FOCUSING ON RECONNECTING COMMUNITIES AND INCLUDING ALL VOICES IN THE DESIGN AND SELECTION OF DIFFERENT PROJECTS.

NEXT SLIDE, PLEASE.

SO THE BILL PROVIDES GENERALLY TWO DIFFERENT TYPES OF FUNDING, FORMULA FUNDING AND COMPETITIVE GRANTS.

I'LL GO OVER SOME OF THE FORMULA FUNDS FIRST AND THEN I'LL SWITCH INTO COVERING SOME COMPETITIVE GRANTS THAT WE'RE AWARE OF.

AND JUST AS A REMINDER, FORMULA FUNDS ARE FUNDS THAT ARE AWARDED BASED ON SOME SORT OF CALCULATION IN THIS INSTANCE, NORMALLY BASED ON SOME SORT OF POPULATION RATIO VERSUS COMPETITIVE GRANTS, WHICH ARE AWARDED BASED ON THE MERITS OF AN APPLICATION OR A SPECIFIC PROJECT. SO A KEY POTS OF FORMULA FUNDING WITHIN THE BILL INCLUDE FUNDING TO REPAIR AND REBUILD ROADS AND BRIDGES.

AND YOU CAN SEE THIS IS ABOUT A 28 PERCENT INCREASE FROM OUR CURRENT STATE FUNDING IN THIS AREA, SO QUITE A SIGNIFICANT INCREASE HERE.

AND THEN WE ALSO HAVE FUNDING TO IMPROVE SAFETY WITHIN OUR TRANSPORTATION SYSTEM.

THIS IS ABOUT A 29 PERCENT INCREASE FROM CURRENT FUNDING LEVELS.

AND HERE WE SEE A STRONG FOCUS ON REDUCING CRASHES AND TRANSPORTATION RELATED DEATHS AND INJURIES WITHIN OUR TRANSPORTATION SYSTEM.

[03:50:04]

ADDITIONAL FUNDING WILL ALSO BE AVAILABLE TO MODERNIZE AND EXPAND PASSENGER RAIL AND IMPROVE THE SAFETY OF OUR FREIGHT RAIL NETWORK, INCLUDING DEDICATED FUNDING TO CLEARING THE AMTRAK BACKLOG AND EXPANDING RAIL SERVICE OUTSIDE OF THE KIND OF CORE NORTHEAST AND MID-ATLANTIC CORRIDORS.

AND THEN LASTLY, AND OUR AIRPORT FOLKS WILL TOUCH ON THIS IN A BIT, BUT IT ALSO INCLUDES ADDRESSING OR ALSO INCLUDES FUNDING TO IMPROVE OUR NATION'S AIRPORTS, INCLUDING AIRSIDE AND LANDSIDE NEEDS, AND IMPROVING RESILIENCY AND ACCESSIBILITY.

SO THAT'S A NON-EXHAUSTIVE OVERVIEW OF SOME OF THE FORMULA FUNDINGS THAT WE'RE WAITING TO HEAR MORE ABOUT, AND HOPEFULLY WE'LL HAVE A VERY POSITIVE IMPACT FOR FLAGSTAFF.

NEXT SLIDE. SO IN ADDITION TO FORMULA FUNDS, THE BILL ALSO HAS A REALLY BIG IMPACT ON THE WORLD OF COMPETITIVE GRANTS.

THE LEGISLATION INCLUDES FUNDING TO BOTH EXPAND EXISTING GRANT PROGRAMS AND TO CREATE SOME NEW GRANT PROGRAMS. SO THIS IS A NON-EXHAUSTIVE LIST OF GRANT PROGRAMS THAT COULD BE RELEVANT FOR FLAGSTAFF AND AGAIN, WE'RE WAITING TO LEARN MORE ABOUT THESE WITHIN THE REALM OF TRANSPORTATION GRANTS. THE BILL EXPANDED EXISTING PROGRAMS SUCH AS RAISE AND INGRA, WHICH WE HAVE OF COURSE, APPLIED FOR IN THE PAST.

AND THEN IT CREATED NEW GRANT PROGRAMS SUCH AS THE SAFE STREETS AND ROADS FOR ALL, WHICH IS $5 BILLION EXCLUSIVELY FOR LOCAL GOVERNMENTS TO COMPLETE STREET IMPROVEMENTS AGAIN TO REDUCE CRASHES AND FATALITIES.

WE ALSO HAVE THE CHARGING AND FUELING INFRASTRUCTURE GRANTS, WHICH IS 2.5 BILLION TO STRATEGICALLY DEPLOY HYDROGEN, PROPANE, ELECTRIC AND NATURAL GAS FUELING INFRASTRUCTURE FOR VEHICLES THROUGHOUT THE COUNTRY.

SO WE'RE KEEPING AN EYE ON THESE PROGRAMS. YOU CAN SEE IN THE RIGHT HAND MOST COLUMN WHEN THE FEDERAL GOVERNMENT IS EXPECTING THOSE APPLICATION PROCESSES TO OPEN UP AND FOR TRANSPORTATION RELATED GRANTS, IT SEEMS TO BE CLUSTERED AROUND EARLY 2022.

STACEY SAID. WE'VE ALREADY SEEN THE RAISED SNOWFALL COME OUT, SO IT'S A PRETTY EXCITING AND WE'RE KEEPING AN EYE ON THOSE.

NEXT SLIDE, PLEASE.

SO THIS SLIDE SHOWS A SELECTION OF COMPETITIVE GRANTS FOCUSED ON CLIMATE, ENERGY AND THE ENVIRONMENT. AND YOU CAN SEE SOME FAMILIAR PROGRAMS AGAIN, SUCH AS THE FEMA FLOOD MITIGATION ASSISTANCE PROGRAM, THE BROWNFIELD REMEDIATION PROGRAM.

THOSE ARE BOTH BEEN EXPANDED WITH ADDITIONAL FUNDING.

AND THEN THERE'S NEW GRANT PROGRAMS SUCH AS THE COMMUNITY WILDFIRE DEFENSE GRANT.

THAT'S $1 BILLION TO THE DEPARTMENT OF AGRICULTURE TO HELP COMMUNITIES DEVELOP AND REVISE WILDFIRE PROTECTION PLANS AND TO IMPLEMENT SOME OF THEIR PROJECTS WITHIN THOSE PLANS.

AND AGAIN, IN THAT RIGHT, MOST COLUMN APPLICATIONS FOR THESE CLIMATE AND ENERGY PROGRAMS ARE SCHEDULED FOR A BIT LATER THIS YEAR, CLUSTERING AROUND THE KIND OF SUMMER LATE SPRING TIMEFRAME. NEXT SLIDE.

AND THEN LAST THING I WANTED TO HIGHLIGHT SOME GRANTS RELATED TO BROADBAND AND CYBERSECURITY. SEVERAL NEW COMPETITIVE GRANTS HERE, INCLUDING MIDDLE MILE GRANTS.

THAT'S $1 BILLION TO THE DEPARTMENT OF COMMERCE FOR CONSTRUCTION, IMPROVEMENT AND ACQUISITION OF MIDDLE MILE BROADBAND INFRASTRUCTURE.

AND THEN WE ALSO HAVE A BILLION DOLLARS, EXCUSE ME.

WITHIN THE NEW STATE AND LOCAL CYBERSECURITY GRANT PROGRAM, AGAIN EXCLUSIVELY FOR LOCAL GOVERNMENTS TO HELP ADDRESS CYBERSECURITY RISKS TO OUR INFORMATION SYSTEMS AND APPLICATION DATES, HERE ARE A LITTLE BIT TOWARDS THE END OF 2022 AND STACEY AND HER GRANTS AND CONTRACTS TEAM ARE KEEPING A VERY CLOSE EYE ON ALL OF THESE STATES.

I SEE MAYOR HAS A HAND UP.

I CAN PAUSE FOR THAT, IF YOU LIKE.

YEAH, THANK YOU. I JUST WANTED TO ASK MAYBE A LITTLE EARLY ON THESE EXPANDED GRANTS, BUT DO WE KNOW THE EXPECTED MATCHING RATIO? UM STACEY FEEL FREE TO JUMP IN, I ANTICIPATE IT MIGHT BE DIFFERENT FOR EACH GRANT PROGRAM IT HAS BEEN AND YOU KNOW, SOME OF THE WEBINARS HAS BEEN ABOUT SEVENTY FIVE, TWENTY FIVE AND THEN SOME SAID THAT THEY'RE WORKING TO TRY TO GET IT AT 100 PERCENT.

AND SO, SO IT'S IT'S KIND OF ALL OVER THE BOARD, BUT I DON'T I THINK WE'RE GOING TO SEE

[03:55:03]

EXCELLENT, AND IS THERE ANY DISCUSSION ON THE DISTINCTION BETWEEN RURAL AND URBAN IN THAT EFFECT? BECAUSE I MEAN, I'VE HEARD IT ON THE POLITICAL REALM, BUT NOT EXACTLY THE BUREAUCRATIC WHAT'S, YOU KNOW, ACTUALLY GOING TO BE THE GUARDRAILS ON THIS.

BUT IS THERE ANY DISTINCTION FOR, SAY, 100 PERCENT WITHOUT MATCHING FOR RURAL COMMUNITIES VERSUS THOSE WHO CAN ACTUALLY AFFORD TO HAVE A MATCH? AND IF WE MIGHT BE INTO THE RURAL CATEGORY, THAT THEREFORE WOULD ALLOW US TO HAVE GREATER ACCESS TO THESE? YES, YOU ARE RIGHT ON, YOU KNOW, MORE THAN I DO MAYORS SOMETIMES ABOUT ALL THESE GRANTS.

I'M VERY TENTATIVE. IT KEEPS A GOOD TRACK.

SO I APPRECIATE THE, YOU KNOW, THE HELP FROM ALL OF YOU.

BUT THAT IS EXACTLY WHAT I'M HEARING, TOO, IS THAT SOME OF THEM ARE, YOU KNOW, IT'S BY POPULATION SIZE.

BUT THEN THEY'RE ALSO HAVING THE DISCUSSION OF IF YOU'RE RURAL AND YOU CAN SUBMIT FOR THAT HUNDRED PERCENT WAIVER KIND OF THING.

SO THAT IS IN THE WORKS.

WELL, LET'S MAKE SURE THAT THE RURAL MARK IS AT 100000 AS OPPOSED TO 50000.

SO LET'S DO THAT IF YOU NEED A LETTER.

I'M DOING THE THUMBS UP.

AND YES, WE'LL WE'LL FOR SURE GO FOR THE 100, 100 PERCENT BAG OF CASH.

YEAH. THANK YOU.

THANK YOU, MAYOR, AND THANK YOU, STACEY.

ALSO, I'VE SEEN SOME OF THESE GRANTS, MAYBE ON PREVIOUS SLIDES THAT SHOWED THEM THAT ARE ONLY ELIGIBLE FOR RURAL COMMUNITIES.

AGAIN, THAT POPULATION THRESHOLD MIGHT VARY, BUT WE'LL DEFINITELY KEEP AN EYE ON THOSE RURAL ONLY GRANTS AS WELL.

NEXT SLIDE, PLEASE.

SO MOVING ON TO THE ENVIRONMENTAL INFRASTRUCTURE PROGRAM, THE BILL PROVIDED $9 BILLION OF FUNDING FOR THE ARMY CORPS OF ENGINEERS.

AND THEN WITHIN THAT, NINE BILLION, 18 MILLION WAS SET ASIDE FOR ENVIRONMENTAL INFRASTRUCTURE PROJECTS.

THE BILL SPECIFICALLY PROVIDED FUNDING FOR 10 ENVIRONMENTAL INFRASTRUCTURE PROJECTS IN TWO OF THOSE WENT TO FLAGSTAFF, WHICH IS PRETTY INCREDIBLE.

WE'RE THE ONLY COMMUNITY THAT GOT THAT GOT TWO AWARDS.

AND THOSE PROJECTS, I KNOW THE SLIDE IS A LITTLE BIT SMALL.

I JUST WANT TO KIND OF CONTEXTUALIZE WHERE WE FIT WITHIN ALL THESE OTHER PROJECTS.

BUT THE TWO PROJECTS THAT WE WERE AWARDED INCLUDE THE FLAGSTAFF DOWNTOWN FLOOD LATERAL TUNNEL AND THE W.E.F CLUB REGIONAL FLOOD DETENTION BASIN PROJECT.

SO I KNOW THE BUDGET TEAM AND STACEY AND THE STORM WATER FOLKS ARE ALL WORKING HARD ON THAT FUNDING. NEXT SLIDE.

SO THAT'S A BRIEF OVERVIEW OF WHAT IS A HUGE PIECE OF LEGISLATION, THE BIPARTISAN INFRASTRUCTURE LEGISLATION STAFF ARE TAKING ADVANTAGE OF ALL THE RESOURCES OFFERED BY THE FEDERAL GOVERNMENT TO KEEP UP TO DATE ON OPPORTUNITIES.

AND YOU CAN SEE WE WE JUST SHOWED THE WEBSITE HERE THAT SAYS, YOU KNOW, THE FHWA WILL BE ADDING MORE RESOURCES SOON.

SO WE ARE ANXIOUSLY AWAITING THAT.

HAPPY TO TAKE ANY QUESTIONS.

THANKS. WE HAVE COUNCIL MEMBER SALAS AND THEN COUNCIL MEMBER SHIMONI.

HI, EVERYBODY, CAN YOU SEE ME, CAN YOU HEAR ME? I COULDN'T TELL. THANK YOU.

WELL, THANK YOU SO MUCH, MISS LANGLEY AND OUR GRANTS TEAM.

I HAVE A COUPLE OF COMMENTS AND A QUESTION COMMENTS, SO I HAD THE OPPORTUNITY TO TO LISTEN TO FEDERAL HIGHWAY ADMINISTRATOR FOR ARIZONA.

MS. PERRY LAST WEEK AND THE THE GUIDELINES FOR.

ELECTRIC VEHICLE.

WILL COME OUT. SO THIS MONTH, HOPEFULLY IN THE NEXT 30 DAYS AND THE GOVERNMENT DUTY HAS ALLOCATED 50 MILLION ONE TIME FOR SMART, WHICH STANDS FOR STATE MATCH ADVANTAGE FOR RURAL TRANSPORTATION.

THIS IS ONE TIME 50 MILLION FROM TPT COLLECTION SALES TAX THAT CREATES THE NEW STATE MATCH PORTION.

FOR FEDERAL GRANTS, 40 PERCENT WILL GO TO COUNTIES, 40 PERCENT WILL GO TO CITIES AND TOWNS, AND 20 PERCENT WILL GO TO THE ARIZONA DEPARTMENT OF TRANSPORTATION, ADOT.

UM, YEAH, A LOT OF OPPORTUNITIES COMING UP.

[04:00:03]

THE FORMULA FUNDING AS MUCH AS WE CAN RATHER THAN SEEKING THOSE COMPETITIVE GRANTS, WHICH ARE, OF COURSE, COMPETITIVE AND MERIT BASED.

AND THERE'S A LOT OF COMPETITION OUT THERE.

MY QUESTION TO STAFF IS WITH ALL OF THIS, THIS GRANT OPPORTUNITY IS JUST WITH REGARDS TO, YOU KNOW, THE BIPARTISAN INFRASTRUCTURE LAW DO HAVE THE STAFF CAPACITY TO SUBMIT, DEVELOP AND SUBMIT THESE GRANTS.

I UNDERSTAND WE HAVE STAFFING FOR ARPA ADMINISTRATION, BUT IN TERMS OF GRANT SEEKING AND DEVELOPMENT, AND I UNDERSTAND WE'LL ALSO HAVE ROBUST COLLABORATIVE RELATIONSHIP WITH, OF COURSE, METRO PLAN AND OTHER COMMUNITY PARTNERS.

BUT IN OUR IN OUR HOME TEAM FLAGSTAFF, I'M ASKING MS. STACEY BE OKAY, DO YOU NEED ADDITIONAL FTE, ADDITIONAL STAFF OR RESOURCES? SO YOU KNOW WE CAN WE CAN HELP YOU BE SUCCESSFUL AS WE SEEK AND HOPEFULLY OBTAIN THESE GRANTS. YEAH, AND OF COURSE, THEY KNOW THE CITY IS CAN USE LOTS OF HELP IN ALL DIVISIONS, BUT I DID PUT IN FOR TWO POSITIONS FOR THIS NEXT BUDGET YEAR FOR GRANTS AND CONTRACT SPECIALISTS.

IN ADDITION, THE LEADERSHIP TEAM IS SUPPORTED IN ON-CALL PRE AND POST AWARD CONSULTING FIRMS TO HAVE LIKE ALMOST LIKE A JOB TO HAVE FIRMS AVAILABLE TO US.

AND SO I'M ALSO WORKING ON THAT WITH PATRICK BROWN AND CHRISTINA PERRY ON AN RACQ TO TO SEE IF WE CAN GET SOME ON-CALL CONSULTING FIRMS TO HELP US MANAGE THESE FUNDS, FIND THE FUNDS, ACQUIRE THEM AND SO FORTH.

SO. SO WE ARE DEFINITELY GOT SOME THINGS IN THE WORKS, AND I APPRECIATE THE THE QUESTION.

SO THANK YOU VERY MUCH. PLUS, WE HAVE MANY COUNCIL MEMBERS LIKE YOURSELF, HELPING US FIND FUNDS AND TRACK THEM AND GIVE US INFORMATION.

SO I APPRECIATE AND I JUST SAW YOUR EMAIL COUNCIL MEMBER SALAS ON THE THE THE BUS INFORMATION. SO I APPRECIATE THAT.

RIGHT. COUNCIL MEMBER SHIMONI.

THANK YOU, JULIE, AND STACEY, B.K.

AND SARAH. VERY EXCITING STUFF.

SO I GUESS, SARAH, MY QUESTION IS FOR YOU.

IS THERE STILL IS THERE A CERTAIN LENS THAT THIS THAT THE ADMINISTRATION IS LOOKING THROUGH OR THOSE WHO ARE TAKING THESE GRANT APPLICATIONS? ARE THEY ARE THEY STILL LOOKING? I GUESS I REMEMBER IN THE PAST THEY WERE LOOKING AT IT THROUGH THE LENS OF EQUITY AND SUSTAINABILITY AS LIKE TWO VERY STRONG PRIMARY PILLARS IN IN THE IN THE APPLICATIONS THAT THEY RECEIVE. IS THAT STILL THE CASE WITH ALL OF THIS? OR WHAT ARE YOUR THOUGHTS ON THAT? PHOENIX COUNCIL MEMBER SHIMONI, YEAH, DEFINITELY I WOULD SAY THAT'S STILL THE CASE.

THOSE ARE KIND OF OVERARCHING THEMES THAT WE'VE SEEN THROUGHOUT THE BIDEN ADMINISTRATION, AND I BELIEVE THAT THE POLICY MEMORANDUM, WHICH I LINKED IN THE FIRST SLIDE THAT I COVERED, IF YOU WANT TO CLICK ON THAT, YOU CAN READ MORE IN DEPTH.

BUT THAT KIND OF GIVES A FOCUS ON OR GIVES US A HINT AS TO WHAT THEY'LL BE FOCUSING ON AND WHICH KIND OF PROJECTS THEY WILL BE PRIORITIZING.

SO EQUITY, SUSTAINABILITY, JUSTICE WILL ALL BE KEY THINGS THAT THEY'RE HOPING TO PROMOTE WITH THIS FUNDING AND WITH THE SAFE STREETS AND ROADS FOR ALL.

I MEAN, THAT'S LIKE A DREAM COME TRUE FOR ME, RIGHT IN THE VISION ZERO LANGUAGE.

I MEAN, THEY'RE ALREADY PUTTING THAT IN THERE WHEN I'M, YOU KNOW, TRYING TO GET US TO IMPLEMENT POLICY TO REFLECT THAT.

IT'S JUST SO EXCITING FOR ME AS A COUNCIL MEMBER TO SEE THAT BEING LAID AT THE FEDERAL LEVEL, TOO. SO I GUESS MY QUESTION FOR STACEY, YOU ANSWERED THIS ABOUT LIKE MAYBE SEEKING OUTSIDE HELP IN TERMS OF LIKE FINDING THESE OPPORTUNITIES AND APPLYING FOR THEM.

I GUESS MY QUESTION FOR RICK.

JULIA, IF THIS IS APPROPRIATE AND WE CAN DOVE INTO IT WITH ENGINEERING UPDATE, IF WE'D RATHER WAIT TILL THEN, BUT IT TIES INTO THIS JUST IN TERMS OF CAPACITY AND ABILITY.

AND HOW DO WE BEST POSITION OURSELVES TO TAKE ADVANTAGE OF THESE OPPORTUNITIES AND MAKE SPACE IN OUR PLAN, IN OUR CAPITAL IMPROVEMENT PLAN SO THAT WE CAN BE MORE NIMBLE? LIKE I SAID, JULIA, WE COULD WAIT IF YOU WANT, BUT I GUESS THAT IS WHAT MY MIND GOES WHEN I THINK ABOUT SOME OF THESE OPPORTUNITIES.

AND THEN MY OTHER QUESTION, I GUESS, IS IN REGARDS TO ALTERNATE POLICING, I MIGHT HAVE MISSED THIS, BUT IS THERE ANY IS THERE ANYTHING COMING UP AT THE FEDERAL LEVEL IN TERMS OF ALTERNATE POLICING OPPORTUNITY FOR FUNDING?

[04:05:04]

NOT THAT I'VE SEEN SPECIFICALLY IN THE FACT SHEETS AND, YOU KNOW, THINGS THAT STACEY AND I HAVE BEEN PARTICIPATING ON STACEY, HAVE YOU SEEN ANYTHING ON ALTERNATE POLICING? NO, I HAVEN'T.

BUT AGAIN, WE CONTINUE TO LOOK AT OTHER FUNDS.

I GET A DAILY GRANTS DOT GOV EMAIL.

SO IF IT'S THROUGH DEPARTMENT OF JUSTICE, MAYBE NOT THE INFRASTRUCTURE.

THERE IS COMMUNITY POLICING FUNDS OUT THERE THROUGH DOJ.

AND SO WE'RE CONTINUING TO WATCH FOR THOSE AND APPLY FOR THOSE, JUST NOT THROUGH THE INFRASTRUCTURE BILL, JUST OTHER FUNDING SOURCES, APPROPRIATIONS.

AND THEN IF I COULD REAL QUICK AND RICK CAN JUMP ON, WE DID THROUGH THIS BUDGET PROCESS, A LOT OF THE DIVISIONS HAVE TO ENTER GRANTS, FUTURE GRANTS FOR APPROPRIATIONS AND FOR INFRASTRUCTURE PROJECTS, CAPITAL PROJECTS.

THEY HAVE ALL BEEN DOING THAT STORM WATER CAPITAL, EVERYBODY TO MAKE SURE THAT WE HAVE APPROPRIATIONS AVAILABLE WHEN WE GO FOR THESE GRANTS AND GET THEM AWARDED.

OKAY. THANK YOU.

JULIA, WE CAN DIVE INTO MY QUESTIONS WITH RICK LATER WHEN THAT COMES UP.

I THINK THAT MIGHT BE MORE APPROPRIATE.

THANK YOU. ALL RIGHT.

SEEING NO OTHER QUESTIONS.

OH, RICK SAID HE'S AVAILABLE IF YOU WANT TO DIVE IN NOW.

SOUNDED LIKE, THOUGH, WE MIGHT BE OKAY TO PUSH THAT A LITTLE BIT FURTHER, COUNCIL MEMBER SHIMONI, IS THAT RIGHT? YEAH, THAT'S FINE.

OK. ALL RIGHT, WELL, LET'S CONTINUE WITH THIS SECTION, JUST DOING A QUICK GLANCE AT THE CLOCK, WE WERE ORIGINALLY GOING TO WRAP UP AROUND 1:30 WITH THE SECTION.

WE'RE ABOUT 15 MINUTES PUSHED FROM LUNCH, SO 1:45 IS KIND OF THE TARGET TIME FRAME, BUT ALSO UNDERSTANDING THAT WE HAVE FLEXIBILITY WHERE WE NEED IT.

GOOD AFTERNOON. MAYOR, COUNCIL MEMBER BARNEY HELMICK, FROM THE FLAGSTAFF AIRPORT.

I JUST WANT TO STEP OFF AGENDA FOR 30 SECONDS HERE AND PUT A PLUG IN FOR SOMEBODY THAT YOU'RE SEEING TODAY, A LARGE SUM OF GRANTS THAT ARE FEDERAL AND STATE FUNDED.

THIS IS JUST A SNAPSHOT IN TIME.

FOR THE LAST 30 SOME YEARS WE'VE HAD OUR OWN CARL SAGAN ONLY INSTEAD OF BILLIONS AND BILLIONS OF STARS IS BRINGING IN MILLIONS AND MILLIONS OF FEDERAL AND STATE FUNDS FOR US.

I WANT TO SAY THANK YOU FROM OUR HEART HERE AT THE AIRPORT TO STACEY BK.

MOVING ON TODAY, I WANT TO TALK ABOUT AND THIS PAGE IS ACTUALLY VERY SIMILAR TO WHAT WE SAW HERE AT THE LAST RETREAT.

THE CARES ACT HAS BROUGHT FORWARD FAA GRANT 45 FOR EIGHTEEN POINT ONE MILLION.

THE ONE THING I DO WANT TO BRING IN TO THIS IS THE MAYOR ASKED IF WE ARE ABLE TO USE SOME OF THIS FOR MATCHING FUNDS AND WE HAVE FOUND CASE BY CASE THAT SOME OF THIS MONEY CAN BE USED FOR MATCHING FUNDS.

FAA 46 IS 1.4 MILLION FOR OPERATIONAL MAINTENANCE, WE'RE GOING TO USE THAT TOWARDS SOME WORK HERE AT THE TERMINAL BUILDING.

FAA 47 IS A CONCESSIONS RELIEF GRANT FOR 25 THOUSAND SIX HUNDRED SEVENTY TWO AND A CORRECTION ON THE LAST ONE FAA 50 WAS I PUT IN THIS FAA 49.

ACTUALLY FAA 50.

THOSE COMBINED WERE JUST ABOUT READY TO SEND THOSE FUNDS OUT.

ALL THE FINAL DOCUMENTATIONS GETTING READY.

AND THEN IN BETWEEN, THERE'S FAA 48 FOR ONE POINT NINE MILLION FOR OPERATIONAL MAINTENANCE EXPENSE.

AGAIN, THIS WILL BE USED TOWARDS SOME TERMINAL UPGRADES.

NEXT SLIDE, PLEASE.

NEXT SLIDE, PLEASE.

AND NEW GRANTS, WE HAVE A BIPARTISAN INFRASTRUCTURE LAW GRANT FOR ONE POINT FOUR, NINE THREE FOUR HUNDRED AND FORTY-EIGHT DOLLARS.

WE'RE ACTUALLY IN A POSITION WHERE SOME OF OUR FEDERAL OR STATE FUNDING HAS BEEN OUT OF ORDER, SO WE'RE GOING TO USE THIS TOWARDS A PROJECT THAT WE'D INTENDED TO START NEXT YEAR. AND THAT'S A TAXIWAY DESIGN PROJECT THAT IS WE ALSO HAVE AN ARIZONA DEPARTMENT OF TRANSPORTATION GRANT FOR TWO MILLION FOR LAND, AND THAT WAS OUT OF ORDER FOR OUR AIP GRANTS. BUT THAT IS GOING TO BE BANKED FOR US TO PURCHASE SOME LAND THAT IS NOT DEVELOPABLE BUT WE NEED TO GET INSIDE OF OUR OWN PROPERTY LINE.

AND THEN LAST, WE HAVE A $1.4 MILLION AIRFIELD PAVEMENT PRESERVATION GRANT.

THIS ONE ALSO IN CHECKING WE CAN MATCH THAT FROM THE CARES GRANT.

AND THEN I'M GOING TO HAND IT OVER TO BRIAN ON THE NEXT SLIDE, PLEASE.

THANK YOU, BARNEY. AND GOOD AFTERNOON, MAYOR, VICE MAYOR AND COUNCIL.

[04:10:02]

I'M THE AIRPORT PROGRAMS MANAGER HERE AT THE FLAGSTAFF [INAUDIBLE] AIRPORT.

TODAY, I'M GOING TO BE SPEAKING TO YOU ABOUT THE INITIAL EIGHTEEN POINT ONE MILLION DOLLARS CARES ACT GRANT THAT MARTY MENTIONED A COUPLE OF SLIDES AGO.

WE SPOKE ABOUT THIS AT THE PREVIOUS BUDGET RETREAT IN DECEMBER.

AND SO MOSTLY TODAY IS MOSTLY AN UPDATE ON THE INFORMATION PRESENTED AT THAT TIME.

BUT JUST AS A REMINDER, THIS GRANT IS A FOUR YEAR REIMBURSABLE AGREEMENT THAT WAS AWARDED IN EARLY 2020.

THE PIE CHART ON THE RIGHT SIDE OF THE SLIDE HERE SHOWS A BREAKDOWN OF THE PROPOSED FUNDING, WITH SIX POINT SEVEN MILLION MILLION DOLLARS ALLOCATED FOR EQUIPMENT AND MAINTENANCE. SEVEN POINT EIGHT MILLION DOLLARS ALLOCATED FOR PERSONNEL COSTS AND THREE POINT SIX MILLION DOLLARS FOR CONTRACTUAL AND COMMODITY COSTS.

AS OF THE END OF LAST YEAR, WE SPEND ROUGHLY FOUR POINT FIVE $2 MILLION, AND THAT IS MOSTLY COME OUT OF THE BLUE AND ORANGE PORTIONS OF THE PIE CHART FOR THOSE CONTRACTUAL, COMMODITY AND PERSONNEL COSTS.

THE $6.7 MILLION GRADE PORTION OF THAT CHART IS BEING USED FOR MAINTENANCE PROJECTS AROUND THE AIRPORT. WE HAVE TWO PROJECTS ONGOING RIGHT NOW.

ONE IS AN AIRCRAFT HANGAR AND MAINTENANCE PROJECT AND ANOTHER IS AN AIRFIELD MAINTENANCE PROJECT FOR THE AIRFIELD ITSELF.

LET'S TALK A LITTLE BIT MORE ABOUT THOSE ON THE NEXT SLIDE, BUT I ALSO WANTED TO TOUCH BASE ON SOME UPCOMING PROJECTS THAT WE'RE EXPECTING TO USE THAT FUNDING FOR THESE PROJECTS INCLUDE A TERMINAL ROOM EXPANSION AND EXPANSION OF AIRLINE COUNTER AREA WITHIN THE TERMINAL AND FACILITIES MAINTENANCE PROJECT FOR SOME FACILITIES ITEMS WITHIN THE TERMINAL ITSELF. WE'RE ALSO LOOKING TO PERFORM MAINTENANCE ON THE EXISTING TERMINAL PARKING LOT ONCE OUR NEW PARKING LOT IS FINISHED AND OPEN, WE'LL BE ABLE TO SHIFT SOME VEHICLES TO THAT, WHICH SHOULD GIVE US A CHANCE TO PERFORM SOME MAINTENANCE ON OUR EXISTING TERMINAL LOT.

WE'RE ALSO LOOKING AT DOING SECOND PHASES OF BOTH THE HANGAR MAINTENANCE AND AIRFIELD MAINTENANCE PROJECT THAT ARE CURRENTLY ONGOING.

THOSE UPCOMING PROJECTS ARE ALL IN VARIOUS STAGES OF PROCUREMENT AT THIS TIME.

WE'RE WORKING WITH OUR ON CALL CONTRACTORS AND OUR ON CALL ENGINEER AND ARCHITECTURE FIRMS ON SCOPE TO DEFINE THE SCOPES AND PROPOSE COSTS FOR THOSE PROJECTS AND ARE EXPECTED TO HAVE A GOOD PORTION OF THAT WORK IN PROGRESS LATER THIS YEAR.

NEXT SLIDE, PLEASE. AS I MENTIONED BEFORE, WE HAVE TWO PROJECTS THAT ARE CURRENTLY UNDERWAY. THE FIRST IS THE WEST FLEX HANGAR AND SHADE REPAIR PHASE ONE PROJECT.

THE AIRPORT HAS 63 HANGARS AND 48 AIRCRAFT STORAGE SHADES THAT WE RENT FOR PRIVATE AIRCRAFT STORAGE.

THIS PROJECT INCLUDES ROOF REPAIRS AND PREVENTATIVE MAINTENANCE ON THE STRUCTURE DOORS FOR THOSE UNITS.

THE DOOR MAINTENANCE IS LARGELY COMPLETED AT THIS POINT, AND WE'RE ABOUT TWO THIRDS OF THE WAY DONE WITH THE ROOF REPAIRS JUST WAITING ON SOME FAVORABLE WEATHER TO FINISH THAT UP. AND SO FAR, WE'VE BEEN RECEIVING VERY POSITIVE FEEDBACK FROM OUR TENANTS.

I INCLUDED THE PHOTO ON THE LEFT SIDE OF THE SLIDE.

THEY SAID THINK IT DOES A GOOD JOB OF SHOWING THE THE SCALE OF THE AIRPORT INFRASTRUCTURE, THE CONTRACTORS THAT ARE KIND OF OFF IN THE DISTANCE ON THE BACK SIDE OF THAT DOOR, I THINK, DO A GOOD JOB OF SHOWING THE SIZE OF THE BUILDING, WHICH WAS ONE OF THE THINGS THAT ALWAYS STRUCK ME WHEN I STARTED WORKING IN THE AVIATION INDUSTRY.

THE OTHER PROJECT IS CURRENTLY ONGOING IS AIRFIELD MAINTENANCE.

THIS PROJECT INCLUDES PAVEMENT MARKINGS OR STRIPING, AS WELL AS PAVEMENT MAINTENANCE.

WE'RE ABOUT THREE QUARTERS OF THE WAY THROUGH THAT PROJECT AND ARE ON HOLD PENDING SOME WARMER WEATHER FOR SOME OF THE MATERIAL REQUIREMENTS.

THE STRIPING SHOWN IN THAT LOWER RIGHT PICTURE IS CALLED AN ENHANCED TAXIWAY CENTERLINE, MARKING ITS ONE HUNDRED AND FIFTY FEET LONG AND ABOUT THREE AND A HALF FEET WIDE.

AND I THINK IT DOES A GOOD JOB OF ALSO PROVIDING THAT SENSE OF SCALE FOR SOME OF THE WORK THAT'S CURRENTLY GOING ON OUT HERE, ALONG WITH THE CAR, KIND OF IN THE BACKGROUND OF THAT ONE TO SHOW HOW BIG THAT THAT STRIPE IS.

AS I MENTIONED, THOSE ARE OUR TWO PROJECTS THAT ARE CURRENTLY ONGOING, AND WE'RE EXPECTING TO SEE ANOTHER SIX OR SO LATER THIS YEAR COMING OUT OF THAT SAME GRANT.

AND THAT IS THAT ALL I HAVE FOR YOU ON THE UPDATE FOR THAT SPECIFIC GRANT, BUT I'M HAPPY TO ANSWER ANY QUESTIONS YOU HAVE AT THIS TIME.

IF NOT, I THINK WE CAN MOVE TO THE NEXT SLIDE, WHICH I BELIEVE IS STACEY.

YEP, THAT'S ME, BARNEY, THANK YOU FOR THE KIND WORDS IT REALLY TAKES A TEAM REALLY ISN'T ME. THERE'S MANY CITY STAFF AND BUT I APPRECIATE THE COMMENT THAT WAS VERY KIND OF YOU.

BUT WE HAVE SOME AMAZING CITY STAFF THAT WORK VERY HARD IN OUR GRANTS AND GETTING FUNDING AND GETTING THE PROJECTS IMPLEMENTED.

SO IT'S AWESOME.

SO THANK YOU VERY MUCH.

REAL QUICK FOLLOW UP ON THE AIRPORT.

I WAS ON A WEBINAR THE OTHER DAY IN THE AIRPORT TERMINAL PROGRAM FUNDS WILL BE OUT.

THEY ARE SUPPOSED TO BE COMING OUT IN THE NEXT FEW WEEKS, SO THAT'S REALLY GOOD.

THAT'S FOR AIRPORT CAPITAL IMPROVEMENTS, FOR TERMINAL DEVELOPMENT.

[04:15:04]

SO EXCITING.

THIS LAST SLIDE IS REALLY JUST UPDATE THAT SARAH'S VERY GOOD WORKING WITH BOB AND OUR STATE AGENCIES TO PROVIDE EMAIL UPDATES AND TO COUNSEL AND TO OTHERS, AND WE WILL CONTINUE TO DO THAT.

WE WILL WORK TOWARDS PROVIDING THE COUNCIL PROJECT IMPLEMENTATION UPDATES AND EITHER THROUGH THE CITY MANAGER'S REPORT OR OUR CCR, OR IF WE WISH THAT THE COUNCIL WISHES WE COULD DO QUARTERLY UPDATES TO COUNCIL AT A WORK SESSION OR SOMETHING.

SO THAT'S JUST KIND OF A QUICK FOLLOW UP ON HOW WE WILL CONTINUE TO PROVIDE UPDATES TO THE COUNCIL ON ALL THIS EXCITING FUNDING.

ALL RIGHT. COUNCIL MEMBER SHIMONI HAD ASKED IN THE CHAT, SO, RICK, I DON'T KNOW IF YOU CAN POP BACK ON BUT ABOUT ADDRESSING HIS QUESTION AND MAYBE COUNCIL MEMBER SHIMONI, CAN YOU JUST RECAP THAT BRIEFLY? THANK YOU, NICOLE.

MY BAD. YES, I REALIZE THAT OUR CONVERSATION WITH YOU ALL IS UNTIL TOMORROW, SO I WANT TO JUST CIRCLE BACK TO THIS REALLY QUICK.

RICK, IF YOU COULD JUST SPEAK TO WHAT WE AS A CITY CAN DO TO REALLY POSITION OURSELVES IN A PLACE WHERE WE CAN REALLY EMBRACE AND RUN WITH SOME OF THESE OPPORTUNITIES THAT MAYBE AREN'T FULLY IN LINE WITH OUR FIVE YEAR PLAN, BUT KIND OF LIKE X FACTOR OPPORTUNITIES THAT WERE GIVEN ANOTHER CHANCE TO COLLABORATE WITH.

HOPEFULLY, YOU KNOW WHERE I'M GOING WITH WITH THIS POINT.

YEAH, HONESTLY, I MEAN, WHAT YOU'RE ASKING FOR IS A BIG SHIFT IN THE PROGRAMING THAT WE'RE WORKING ON. AGAIN, JUST BEING HONEST TO THAT POINT, I THINK, YOU KNOW, CHASING GRANT OPPORTUNITIES.

UM, YOU KNOW, I ALSO HAVE A CONCERN ABOUT FEDERALIZING OUR LOCAL DOLLARS, SO, YOU KNOW, IF WE'RE TALKING ABOUT 419 AND 420 PROJECTS, I THINK WE NEED TO BE VERY CAREFUL BEFORE WE AGAIN FEDERALIZE THOSE LOCAL PROJECTS.

THERE'S STRINGS THAT COME WITH ALL THAT STACEY MIGHT BE ABLE TO HELP ME HERE.

UM, WHAT OTHER CONCERNS CAN I COME UP WITH HERE? UM, YEAH, SO IF WE'RE TALKING ABOUT YOU KNOW, DELAYING PROJECTS THAT WE'RE PLANNING ON DELIVERING, AND, YOU KNOW, IT'S KIND OF HARD COUNCIL MEMBER SHIMONI TO TALK ABOUT THIS WITHOUT TALKING ABOUT THE PROGRAM, SO I'M MORE THAN WILLING TO TALK ABOUT THIS TOMORROW.

AND EVEN THEN, TOMORROW'S CONVERSATION IS JUST A PRECURSOR TO THE WORK THAT'S GOING TO HAPPEN LATER ON IN APRIL AT AN APRIL BUDGET RETREAT.

SO THE PROGRAMING EFFORTS AREN'T COMPLETELY DONE NOW.

AS HEIDI INDICATED EARLIER, ALL THE FIVE YEAR PLANS ARE STILL ON THE TABLE, GETTING WORKED OUT AND FINALIZED.

UM, WE HAVE SOME ADDITIONAL WORK TO FIGURE OUT JUST HOW MUCH MONEY CAN CARRY OVER FROM FISCAL YEAR '22 THAT WE'RE IN TODAY AND CARRY INTO THE FUTURE FISCAL YEAR.

BOY, JUST A LOT OF THOUGHTS COMING TO MIND.

BUT THE WHOLE IDEA OF CHASING GRANTS AGAIN AS IT COMPARES TO WHERE WE ARE WITH OUR LOCAL DOLLARS IS PROBABLY A BIG DISCUSSION POINT THAT WE'RE ALL GOING TO WANT TO TALK ABOUT.

YOU KNOW, RICK, I STILL APPRECIATE YOUR COMMENT AND YOUR DIRECTNESS AND FACING THIS DIRECTLY BECAUSE I DON'T EXPECT ANYTHING LESS FROM OUR CONVERSATIONS WITH LEADERSHIP.

AND ALL OF YOU IS DIRECT, HONEST, DIFFICULT AT TIMES, CONVERSATIONS MOST OF THE TIME.

AND SO, YEAH, RICK AND CITY MANAGER, I'D LOVE TO HAVE THAT CONVERSATION WITH COUNCIL.

I UNDERSTAND THAT NOW IS NOT THE TIME TO DO THAT.

NICOLE, NO, NO HAND NEEDED.

BUT I'M PROUD OF MYSELF FOR MAKING IT THIS FAR, BY THE WAY.

BUT GREG, I SEEM TO HEAR YOUR THOUGHTS.

I DEFINITELY SEE A LOT OF VALUE IN TRYING TO CHASE SOME OF THESE OPPORTUNITIES TO ACCOMPLISH THINGS. BUT I ALSO HEAR FROM OUR CITY ENGINEER, MR. BARRETT, THAT THAT MEANS CHANGING OUR WORKLOAD AND PLAN.

AND THAT'S A BIG CONVERSATION.

IT IS. THANK YOU.

THANK YOU. AND I WILL.

I'M NOT GOING TO ADD TO WHAT RICK SAID.

I JUST WANT TO MAYBE ELABORATE ON SOMETHING HE SAID.

THERE WAS REFERENCES MADE TO FEDERALIZING LOCAL PROJECTS.

THAT IS A BIG DEAL.

I MEAN, WE JUST WENT THROUGH AN EXERCISE WHERE YOU SAW ALL THE FUNDING THROUGH BOTH ARPA AND THE STATE AND YOU KNOW HOW THE PROJECTS LINED UP IN THAT MATRIX BETWEEN EITHER

[04:20:05]

THERE'S SIGNIFICANCE IN ALL OF THAT BECAUSE THE FEDERAL PROJECTS DO COME WITH A LOT MORE STRINGS ATTACHED AND THAT IS NOT TRUE WITH THE OTHER ONE.

SO IT AFFORDS US A LOT MORE FLEXIBILITY IN THOSE PROJECTS.

THERE'S BEEN SOME A LOT OF VERY DELIBERATE STRATEGIZING AS TO WHICH PROJECTS SHOULD SHOULD FALL INTO WHICH CATEGORY.

SO BACK TO RICK'S COMMENTS, YOU KNOW, THAT'S JUST GIVING SOME CONTEXT TO IT.

I'M NOT WEIGHING IN ON WHAT I THINK YOU'RE ASKING FOR, AND CERTAINLY IT IS A DISCUSSION THAT PROBABLY COULD CONTINUE TOMORROW.

I JUST WANTED TO GIVE A LITTLE CONTEXT TO THE THING ABOUT FEDERALIZING LOCAL PROJECTS.

ONCE YOU BRING THE FEDS INTO THESE THINGS, IT'S A BIT OF A GAME CHANGER IN TERMS OF THE REQUIREMENTS. AND ACTUALLY FOR A PROJECT THAT ALREADY HAS BEEN FUNDED LOCALLY THROUGH TAX APPROVED BOND ISSUANCES, THAT COULD GREATLY COMPLICATE THAT PARTICULAR PROJECT BECAUSE IT IS NOT FEDERAL YET FEDERAL THINGS.

YOU KNOW, JUST AS ONE EXAMPLE, IT MAY TRIGGER ALL KINDS OF THINGS LIKE ENVIRONMENTAL ANALYZES, AND THE LIST IS LONG.

IT'S VERY LONG.

THINGS THAT DON'T ALWAYS GET TRIGGERED AT THE LOCAL LEVEL.

RICK, THANKS FOR LETTING ME GIVE YOU A LITTLE CONTEXT TO THAT.

CITY MANAGER, IF I CAN, NICOLE, GIVE A REALLY QUICK QUESTION.

FOLLOW UP FOR YOU.

I WONDER. AND RICK, I WONDER IF THERE'S I'M NOT AN EXPERT ON THESE THINGS, SO I DON'T KNOW IF THIS MAKES SENSE AT ALL.

BUT IS THERE A WAY TO DIFFERENTIATE AND SEPARATE LOCAL PROJECTS THAT WE HAVE, LET'S SAY, AS PART OF 419 AND PROJECTS AND OPPORTUNITIES THAT WE MIGHT HAVE WITH THESE GRANT MONIES AND ALMOST TREAT THEM SEPARATELY.

SO WE'RE NOT MIXING IN A WAY THAT'S GOING TO BE HARMFUL TO US, BUT SETTING US UP FOR SUCCESS TO TAKE ADVANTAGE OF SOME FREE MONEY, SO TO SPEAK, TO DO SOME GREAT THINGS IN TERMS OF SAFETY ALONG OUR STREETS AND INTERSECTIONS.

YEAH, THANK YOU FOR THAT, COUNCIL MEMBER SHIMONI, AND I REALLY THINK THAT THAT'S EXACTLY WHERE WE OUGHT TO BE.

I GIVE YOU A LOT OF CREDIT FOR SHARING THAT THOUGHT BECAUSE MY EXACT SUGGESTION WOULD BE.

WELL, FIRST, LET ME PAUSE THERE AND TALK MAYBE A BIT ABOUT BACKGROUND HERE.

SO THE WAY THE CITY APPROACHES OUR FIVE YEAR PLANNING PROCESS OR OUR FIVE YEAR CAPITAL PROGRAM, AGAIN, AS COUNCIL MEMBER MCCARTHY MENTIONED, WORDS ARE IMPORTANT HERE.

WE DON'T PROGRAM ANYTHING THAT ISN'T FUNDED.

SO THAT'S WHY THE ONLY PROJECTS YOU'RE GOING TO SEE IN OUR FIVE YEAR CAPITAL PLAN ARE FUNDED, AND THAT IS TYPICALLY THE ONES WE'RE TALKING ABOUT HERE ARE GOING TO BE COMING OUT OF THE VOTER APPROVED TRANSPORTATION TAX, WHICH WAS 419 AND 420.

WE AFFECTIONATELY REFER TO IT AS SO YES, GOING BACK TO YOUR POINT, I THINK THAT IS EXACTLY WHAT WE WANT TO DO.

SO WE WANT TO LOOK BEYOND THE PROGRAM.

WE WANT TO START TO LOOK AT WHAT PROJECTS HAVEN'T WE FUNDED LOCALLY AND HOW MIGHT WE POSITION THOSE FUTURE ENDEAVORS TO ALIGN WITH THESE GRANT OPPORTUNITIES? SO I THINK IT'S A SEPARATE LIST OF PROJECTS.

JUST HAVING ONLY A COUPLE OF MINUTES TO THINK ABOUT IT.

BUT I THINK THAT'S THE BEST STRATEGY FORWARD FOR US.

COUNCIL MEMBER TOTALLY.

AND IN NICOLE, I KNOW WE'RE WRAPPING UP AND I'M SORRY, MAYOR AND COUNCIL.

THIS IS SUCH AN IMPORTANT TOPIC TO ME AND I APPRECIATE THE TIME GIVEN AND I KNOW THAT MARTIN AND HIS TEAM ARE VERY CREATIVE AND WE HAVE, YOU KNOW, I WOULD BE CURIOUS TO HEAR WHAT MARTIN HAS TO SAY, WHETHER IT'S NOW OR LATER ABOUT HOW WE CAN CREATIVELY UTILIZE THIS AND WHAT WE AS A COUNCIL AND DO WITH THE HEAD OF OUR ENGINEERING CAN DO TO BETTER SUPPORT THAT KIND OF FEDERALIZING OPPORTUNITY THAT WE HAVE.

WE DON'T HAVE TO DIVE IN THAT TO THAT NOW GIVEN TIME, BUT I DO THINK THERE'S AN OPPORTUNITY HERE AND I JUST WANT TO MAKE SURE WE'RE DOING EVERYTHING WE CAN TO TAKE ADVANTAGE OF IT. THANK YOU.

WELL, AGAIN, I'M NOT SURE IF MARTIN'S ON OR NOT, BUT I THINK I'LL JUST TRY TO COVER FOR HIM HERE COUNCIL MEMBER AND I WILL ALSO POINT OUT THAT, YOU KNOW, IN 419, WE DO HAVE $29 MILLION WORTH OF BIKE PED, SPECIFICALLY BIKE PED PROJECTS.

BUT IF I REMEMBER CORRECTLY THAT TWENTY NINE MILLION IS GOING TO COVER THE TWENTY NINE, THE 20-YEAR PERIOD OF THE TRANSPORTATION TAX.

BUT THAT PUT A SMALL DENT IN THE NEEDS OF BIKE AND PET IMPROVEMENTS FOR THE CITY OF FLAGSTAFF. SO THERE IS A TREMENDOUS SIDE OF THAT BIKE PED EQUATION, IF YOU WILL, THAT FALLS INTO THE CATEGORY YOU'RE TALKING ABOUT.

IT FALLS INTO THAT OUTSIDE OF WHAT WE CURRENTLY HAVE FUNDED, AND THAT'S WHAT WE OUGHT TO BE CHASING. I THINK THAT'S EXACTLY THE STRATEGY FORWARD.

[04:25:02]

YEAH. AND IF WE CAN GET GRANTS FOR IT, MAYBE WE COULD EVEN ADVANCE IT BECAUSE RIGHT NOW IT'S BEYOND 20 YEARS.

SO NOT ONLY DO WE GET THE MONEY, BUT WE CAN GET IT SOONER.

YEAH, I SAW THE PLAN FOR TWENTY NINE MILLION AND I WASN'T TOO IMPRESSED, TO BE HONEST.

THERE'S A LOT MORE TO DO.

OK, THANK YOU ALL.

AS YOU SAY, IT'S GETTING CLOSER TO THE GETTING CLOSER TO THE CAMERA.

OK, NOT SEEING ANY OTHER QUESTIONS FROM COUNCIL.

OH, GREG, OK.

SO WE ARE AT THE SCHEDULED TIME FOR A BREAK.

WE ORIGINALLY HAD 15 MINUTES ON THE CALENDAR.

IS ANYBODY OPPOSED TO TAKING A 10 MINUTE BREAK INSTEAD OF COMING BACK AT LIKE 1:51? I THINK IT'S A GREAT IDEA. OK.

ALL RIGHT. BACK AT 1:51 ON THE DOT AND EVERYBODY CAN PAY UP TO GREG, WHETHER IT WAS HIS OWN MONEY OR NOT. ALL RIGHT.

SEE YOU IN 10 MINUTES. PAUL MCCARTHY, ALL RIGHT, WELL, EMOJI ACTION IN THE CHAT.

ALL RIGHT, COUNCIL MEMBER SWEET.

HERE. ALL RIGHT.

COUNCIL MEMBER ASLAN.

BEAUTIFUL. OK.

COUNCIL MEMBER SALAS.

OK, SO WE ARE ONTO THE LAST SEGMENT FOR TODAY.

SO AGAIN, AT THIS POINT IN THE DAY, IT'S KIND OF A LOWER ENERGY PERIOD FOR A LOT OF PEOPLE ANYWAY, NOT FOR EVERYBODY.

IF YOU NEED TO ADJUST YOUR SEAT STAND, DO THOSE SQUATS JUMPING JACKS, THROW YOUR SPANDEX ON, DO SOME STRETCHING WHATEVER YOU NEED TO DO.

JUST CONTINUE 60 PUSH UPS COMPLETED AT THIS POINT.

AWESOME. THERE ARE SOME BURPEES IN FOR US NEXT TIME, BUT JUST KNOW THAT AS WE CONTINUE, IF THAT KIND OF FOCUS SHIFTS A LITTLE BIT STARTS TO DRIFT KIND OF JUST TAKE A COUPLE OF DEEP BREATHS, MAKE SURE YOUR POSTURE IS WIDE.

THAT'S GOING TO KIND OF HELP THAT BLOOD FLOW HELP YOU STAY FOCUSED.

SO WE ARE ON TO RESOURCE ALLOCATIONS AND PRIORITIES, AND I KNOW A LOT OF US HAVE BEEN LOOKING FORWARD TO THIS CONVERSATION.

SO LET'S GO AHEAD AND HAND IT OVER.

WE'VE GOT ANDY, MARK, NICOLE AND SARAH.

AND I SEE RICK TOO.

YEAH, NICOLE, IF I COULD JUST JUMP IN AS WE START THIS SECTION.

THIS IS WHERE WE'RE GOING TO TALK ABOUT A LOT OF INFRASTRUCTURE AND OTHER CAPITAL NEEDS OF OUR ORGANIZATION FROM SEVERAL DIVISIONS.

AND THIS IS WHERE WE REALLY WANT TO ALLOW YOU TIME FOR CONVERSATION.

AND WE BUILT INTO OUR AGENDA SOME FLEXIBILITY TO ROLL OVER TOMORROW.

IF WE GO A LITTLE BIT LONGER, WE HAVE SOME TIME TOMORROW WE CAN ADD FOR THESE CONVERSATIONS. SO I JUST WANTED TO FRAME THAT DISCUSSION.

I KNOW NICOLE WILL KEEP US CLOSE AND OUR TEAM IS GOING TO DO THEIR BEST JOB TO STAY WITHIN THE TIMELINES. BUT THIS IS AN OPPORTUNITY FOR CONVERSATIONS.

THANK YOU, RICK, AND THANK YOU, NICOLE.

SO, NICOLE, LOW ENERGY TIME Q&A, I DON'T KNOW IF I AM THE SOLUTION TO BRINGING THE ENERGY LEVEL BACK UP WITH MY MONOTONE VOICE, BUT NONETHELESS, I'LL TRY TO KEEP THE CONVERSATION LIVELY. SO RICK, IF YOU DON'T MIND NEXT SLIDE, PLEASE AND COUNCIL MEMBER SHIMONI I NEED TO DO SOME PUSH UPS FOR MANY REASONS AND REMIND MYSELF TO STAY HEALTHY.

OH MY! I JUST LOST FOCUS.

SORRY.

BUT SO STORMWATER.

AND THIS IS REALLY A CONTINUAL CONTINUATION, IF YOU WILL, FROM THE COUNCIL CONVERSATION THAT WE HAD AT THE END OF SEPTEMBER.

AND GREG, REALLY TALKING ABOUT CORE INFRASTRUCTURE AND DISCUSSING BOTH OUR STORM WATER AND WASTEWATER NEEDS FOR WATER SERVICES.

SO FOR THE CAPITAL PLAN, WE HAVE SIXTY POINT TWO MILLION IN PROJECTS AND THEN NEEDED ONGOING MAINTENANCE OF SIX HUNDRED AND SEVENTY FIVE THOUSAND FOR OPERATIONS AND THEN AN EQUIPMENT INVESTMENT FOR THOSE STORM WATER MAINTENANCE NEEDS.

WE TALKED ABOUT THE RISK.

AND DURING THAT SEPTEMBER RETREAT, WE TALKED ABOUT ABOUT 1.8 MILLION PER YEAR IN FLOOD RESPONSE. AND OVER THAT 10 YEAR PERIOD, THAT EQUALS ABOUT $18 MILLION.

SO A SIGNIFICANT INVESTMENT, WHETHER WE WANT TO MAKE IT OR NOT, WE RESPOND TO WHAT MOTHER NATURE BRINGS TO US.

SO WE DO HAVE SOME EFFORTS UNDERWAY AND WE'RE WORKING WITH OUR STORM WATER STAFF AND DEVELOPING A DEDICATED MAINTENANCE PROGRAM BECAUSE WHAT WE KNOW IS EVEN IF A STORM WATER

[04:30:01]

IF IT'S WELL MAINTAINED, IT'S BETTER THAN NOT HAVING A SYSTEM AT ALL.

AND WE'VE LEARNED THAT THROUGH EXPERIENCE, WE'RE HAVING BOND DISCUSSIONS.

SHANNON ANDERSON OUR DEPUTY MANAGER, SHE'S LEADING THAT EFFORT.

IT'S SHE'S DOING A GREAT JOB IN DOING SO, AND IT REALLY OPENS IT UP FOR ALL OF US TO HAVE THOSE CONVERSATIONS IN TERMS OF WHAT ARE OUR NEEDS THAT WE ARE NOT ABLE TO CURRENTLY FUND LOCALLY. THE GRANTS DISCUSSION SBK JUST DID A REALLY GOOD JOB OF LAYING OUT THE GRANTS DISCUSSION, AND I CAN TELL YOU HER JOB IS NOT JUST AN OFFICE JOB.

SHE IS OUT THERE BOOTS ON THE GROUND WITH OUR STORM WATER FOLKS.

SHE ALSO SPECIALIZES IN HAZARD MITIGATION.

AND SO THAT'S SUPER HELPFUL AS WE WORK WITH THE ARIZONA DEPARTMENT OF EMERGENCY MANAGEMENT, FEMA REPRESENTATIVES AND ALL THE REPRESENTATIVES THAT COME IN THOSE EMERGENCY RESPONSE EFFORTS, WHICH WE'VE HAD WITH STORM WATER AND BEING ABLE TO TALK ABOUT THE NEEDS AND THE FUNDING NECESSARY TO MOVE FORWARD.

NOW WE LISTED SOME FUNDS FOR GRANTS HERE.

HAZARD MITIGATION PROGRAM GRANTS, FUNDS FLOW THROUGH THE CHANNEL, SO TO SPEAK.

AND YES, STACEY.

WE DO HAVE A GREAT TEAM TOGETHER, AND WHILE WE MIGHT GET FRUSTRATED WITH ONE ANOTHER AT TIMES, IT REALLY GOES BACK TO WHAT RICK BARRETT WAS LAYING OUT, FITTING THE FUNDING NEEDS WITH THE FUNDS AVAILABLE.

AND SOMETIMES WHEN YOU FEDERALIZE A PROJECT, IT CAN MAKE THINGS A BIT MORE DIFFICULT.

SO HOW ARE WE THINKING ABOUT OUR PROJECTS IN SUCH A WAY THAT ALLOWS US TO LINK IT TO THE FUNDS THAT ARE AVAILABLE? SO [INAUDIBLE] GRANTS, THESE ARE GRANTS ARE HOPEFUL, AND PART OF OUR STRATEGY DOES RELY ON THAT HOPE FOR THE GRANTS.

BUT IT'S ALSO COMBINING ALL OF OUR FUNDING FUNDS AVAILABLE TO LEVERAGE.

AND THEY'RE HIGHLY COMPETITIVE BECAUSE WE HAVE SBK AND A GOOD TEAM, WE CAN COMPETE FOR THOSE GRANTS AND WE COMPETE WELL.

AND STACEY AND SARAH BRING ME AND OTHERS LIKE US IN WHEN WE NEED TO HAVE THOSE DIFFICULT CONVERSATIONS WITH OUR FEDERAL REPRESENTATIVES, WITH OUR ELECTED OFFICIALS, ET CETERA, AT THE FEDERAL AND STATE LEVELS.

AND ALSO, WE'RE HAVING THE UTILITY RATE DISCUSSION.

AND SO AGAIN, IT KIND OF ALL FITS INTO THIS HOW DO WE FUND OUR MAJOR CAPITAL AND ONGOING OPERATIONAL NEEDS WITHIN THIS FINANCIAL PLANNING FRAMEWORK THAT WE ATTEMPT TO SET UP? NEXT SLIDE, PLEASE, RICK.

SO ONGOING FLOOD MITIGATION, AND I DIDN'T LIST NUMBERS HERE, I WAS JUST TALKING TO LISA [INAUDIBLE] AND WASTEWATER, WHO'S WORKING WITH OUR HEIDI AND OUR BUDGET REPRESENTATIVES.

SO OUR ONGOING FLOOD MITIGATION, WE REQUESTED AN ADDITIONAL, I BELIEVE, 450000 IN THE BUDGET THIS YEAR. IT'S CURRENTLY NOT FUNDED FOR ONGOING OPERATIONS MAINTENANCE ANOTHER 675 REQUESTED SIX HUNDRED AND SEVENTY FIVE THOUSAND, AND WE'VE REQUESTED THAT KNOWING THAT LOCALLY, WE REALLY STRUGGLED TO HAVE THOSE FUNDS AVAILABLE TO BE ABLE TO FUND.

BUT THAT SAID, THOSE ARE THE NEEDS GOING FORWARD.

EQUIPMENT INVESTMENT.

WE NEED BACKHOES, A COMBINATION TRUCK, WHICH WE REFER TO THE FIELD AS A COMBO TRUCK.

IT ALLOWS US TO BLOW OUT PIPES, THOSE UNDERGROUND PIPES, AS WELL AS SUCK THROUGH ANY DEBRIS THAT MIGHT BE IN THERE AND THEN A MINI DOZER.

WE CURRENTLY HAVE AN ELECTRIC MINI DOZER.

THANKS TO ED [INAUDIBLE], OUR STORM WATER MANAGER WORKING WITH OUR SUSTAINABILITY GROUP AND FINDING A GOOD PRODUCT THAT'S OUT THERE.

AND IT'S A REALLY, REALLY A PRETTY COOL MACHINE FOR LACK OF A BETTER TERM.

AND IT'S REMOTE CONTROLLED AND IT ALLOWS US TO GET INTO THOSE CONFINED SPACES WITH THAT ELECTRIC MINI DOZER.

SPRUCE WASH FLOOD MITIGATION PROJECTS.

WE'VE LISTED 29 MILLION HERE.

AGAIN, YOU'LL SEE SOME WORK AT THE [INAUDIBLE] SCHOOL DETENTION BASIN HAPPENING RIGHT NOW THAT'S JOINTLY FUNDED WITH THE FLAGSTAFF UNIFIED SCHOOL DISTRICT.

WE'LL TALK ABOUT THE SEDIMENT BASINS THAT'S FUNDED THROUGH THE COCONINO COUNTY FLOOD CONTROL DISTRICT, SO LEVERAGING ANY FUNDS THAT THEY MAY HAVE AVAILABLE WORKING WITH NATURAL RESOURCES CONSERVATION SERVICE ON SOME OF THOSE FUNDING OPPORTUNITIES AS WELL.

AND SO THIS JUST SHOWS ONGOING EFFORTS.

AND AS WE DESIGN AGAIN, LOOKING AT THE FUNDING OPPORTUNITIES ASSOCIATED WITH THOSE INDIVIDUAL PROJECTS AND THEN OTHER CAPITAL PROJECTS, THE 28 MILLION THAT INCLUDES REO TO FLAG FLOOD CONTROL, PROJECT COST AS WELL.

AND WE TALK ABOUT SOME OF THOSE LATERALS AND STACEY, SARAH, GOOD JOB. AND WORKING WITH BOB HOLMES OR LOBBYISTS, WE KNOW ABOUT THE ENVIRONMENTAL INFRASTRUCTURE FUNDS WE HAVE HAD.

SOME COME THROUGH, I THINK, ONE POINT FIVE OR ONE POINT TWO FOR A REO TO FLAG A LATERAL CONNECTION AND THEN ONE POINT FIVE FOR THE [INAUDIBLE] SCHOOL DETENTION BASIN, WHICH

[04:35:04]

SO STAY TUNED ON THAT.

ANY QUESTIONS ON STORM WATER BEFORE I SHIFT TO WASTEWATER? I WILL SAY ON THE GRANTS, I ALMOST TOOK THE TIME OVER TO BREAK TO RESEARCH SOME CARL SAGAN QUOTES.

THAT'S AWESOME, BARNEY.

AND SO WHILE I DON'T HAVE A CARL SAGAN QUOTE, I CAN JUST SAY, [INAUDIBLE] SARAH A TOTAL TEAM EFFORT BREAKING THOSE SILOS BETWEEN DEPARTMENTS.

SO IF NO QUESTIONS ON STORM WATER, WE'LL TALK ABOUT WASTE WATER.

SO ON THE WASTEWATER, WE TALK ABOUT RESILIENCY, REDUNDANCY AND COMPLIANCE NOW AT THE END OF SEPTEMBER, WE DID HAVE A LARGE DISCUSSION WITH YOU, THE CITY COUNCIL, ABOUT WASTE NEEDS. WE TALK ABOUT RESILIENCY AND REDUNDANCY.

WE ALSO TALKED ABOUT THIS CAPACITY ISSUE, WHICH THE MAYOR HAD BROUGHT UP EARLIER IN THIS MEETING, BUT WE KNOW WE HAVE SOME NECESSARY UPGRADES AND REPLACEMENTS THERE OVER THE NEXT SIX YEARS.

SIXTY NINE MILLION IN CAPITAL NEEDS FOR THAT REDUNDANCY AND RESILIENCY, TWENTY-EIGHT MILLION IN THE CAPITAL BUDGET.

WE KNOW THE RISK ENVIRONMENTAL CONTAMINATION BEING THE MOST SIGNIFICANT AND THEN WE DO A REALLY GOOD JOB OF MANAGING THAT WASTEWATER SYSTEM.

AND THE BYPRODUCT IS RECLAIMED WATER SUPPLY, WHICH FEEDS PICTURE CANYON AND IRRIGATE SOME OF OUR PARKS. AND SO THAT'S A REALLY A POSITIVE BYPRODUCT OF THAT OVERALL SYSTEM SOME EFFORTS THAT ARE UNDERWAY, THE BOND DISCUSSIONS WE MET WITH THE BOND COMMITTEE LAST WEEK, JIM [INAUDIBLE] DID A REALLY NICE JOB OF TAKING PROCESS.

THAT'S REALLY COMPLICATED BECAUSE WHEN WE THE USER US RESIDENTS, WHEN WE FLUSH, WE WANT TO KNOW THAT WE'RE NOT CONTAMINATING THE ENVIRONMENT AND THAT OUR CITY COMMUNITY UTILITY IS MANAGING THAT BYPRODUCT APPROPRIATELY.

AND JIM DOES A REALLY GOOD JOB OF EXPLAINING THAT WE'RE LOOKING AT OUR RATE STUDIES.

SO AGAIN, THAT COMBINATION OF FUNDING NEED BOND PROJECTS ALONG WITH RATE STUDIES AND THEN OUR MASTER PLANNING EFFORTS.

AND ARE WE HOLDING TRUE TO OUR MASTER PLANS IN TERMS OF ARE WE SAYING WHAT WE NEED IN THAT IN THAT STRATEGIC PLAN IN 2020? ARE WE IMPLEMENTING AND DO OUR NEEDS REMAIN THE SAME OR ARE WE ADAPTING WHICH WE NEED TO BE DOING FOR ANY CARBON NEUTRALITY PLANS THAT MAY BE OUT THERE? AND HOW CAN WE ADAPT AS A COMMUNITY, AS A UTILITY TO ADVANCEMENTS IN TECHNOLOGY? AND THAT'S SOMETHING THAT'S REALLY IMPORTANT TO US.

NEXT SLIDE, PLEASE.

SO UNFUNDED PROJECTS ABOUT 8.2 MILLION, WE'VE LISTED THEM HERE, LISTED A BREAKDOWN HERE, AND IT'S REALLY A BREAKDOWN BETWEEN THE RIO PLANT, THE RIO FLAG PLANT AND THEN THE WILDCAT PLANT, WHICH IS OUR MAIN PLANT.

WE HAVE FOUR MILLION AND PROJECT FUNDING FOR FY22 FY23 THIS FISCAL YEAR THAT WE'RE TALKING ABOUT TODAY, PLANNING FOR THE BOND COMMITTEE, WE PROVIDED A LIST OF PROJECTS TO THEM.

I WOULD SAY THERE'S POTENTIAL TO BE OVERWHELMED BY THAT LIST OF PROJECT BECAUSE THE NUMBERS ADD UP VERY QUICKLY AND THEY BECOME VERY LARGE NUMBERS.

BUT WHAT WE WERE ABLE TO DO THROUGH SHANNON AND GREG'S GUIDANCE IS COME UP WITH A RISK ANALYSIS, IF YOU WILL.

SO EACH OF THOSE PROJECTS AND WHAT'S THE RISK ASSOCIATED WITH DOING OR NOT DOING AND THEN PRIORITIZING THAT LIST BASED ON THAT RISK.

AND I THINK JIM AND LISA AND STAFF HAS DONE A GOOD JOB WITH THAT.

SO WITH THE BOND COMMITTEE, I THINK, YOU KNOW, IT STARTS TO LOOK ABOUT A THREE, EXCUSE ME, A $30 MILLION ASK FROM FROM WATER SERVICES SPECIFICALLY FOR WASTE WATER.

AND WE'LL JUST KEEP DOWN.

WE'LL KEEP GOING DOWN THAT ROAD AND AGAIN TRYING TO LEVERAGE FUNDS WHERE WE CAN WHEN WE CAN, BUT ALWAYS DIFFICULT CONVERSATIONS TO BE HAD.

SO IF ANY QUESTIONS FROM COUNCIL.

WE'D LOVE TO FIELD THEM AND LET US KNOW IF YOU HAVE ANY ANY THOUGHTS OR OBSERVATIONS GOING FORWARD. WELL, [INAUDIBLE], YOU DIDN'T SLEEP.

SO I'M GLAD YOU'RE AWAKE.

NICOLE, ANYWAY, I APPRECIATE YOU FACILITATING THIS THIS IT'S ALWAYS GOOD TO CROSS PATHS WITH YOU. WE'VE KNOWN EACH OTHER A LONG TIME AND REALLY APPRECIATE WHAT YOU'RE DOING.

YEAH, COUNCIL ANY QUESTIONS.

ALL RIGHT, ONTO THE NEXT.

ALL RIGHT, THANKS, EVERYONE.

WELL, GOOD AFTERNOON, MAYOR, MEMBERS OF THE COUNCIL, MARK WILSON, DEPUTY CHIEF WITH FIRE

[04:40:03]

AND WHAT I WANT TO DO IS JUST RECOGNIZE THAT MYSELF.

ALTHOUGH I'LL BE THE PRESENTER, I DO HAVE CHIEF [INAUDIBLE] AND CHIEF GAILLARD, WHO ARE AVAILABLE FOR MORE IN-DEPTH QUESTIONS IF NEED BE.

BUT I THINK IT'S ONE OF THOSE IMPORTANT TOPICS BECAUSE AS WE LOOK AT THE BOND PROCESS IN 2010, WE BONDED FOR THE 100 SYSTEM THAT WE CURRENTLY WORK ON, AND THAT'S JUST THE FREQUENCY AND THE OVERALL RADIO SYSTEM WITHIN THE CITY.

IT WAS AN UPGRADE FROM WHAT IT WAS PRIOR TO THAT.

THAT WAS A $4.7 MILLION BOND AND WE WERE ABLE TO PURCHASE ALL THE INFRASTRUCTURE AND THE RADIOS AT THAT TIME.

OBVIOUSLY, WE'RE LOOKING AT CLOSE TO 12 YEARS OR 11 YEARS TO 12 YEARS, DEPENDING ON WHEN YOU LOOK AT WHEN WE PUT THIS TOGETHER OF SINCE THAT WAS APPROVED AND SINCE WE PURCHASED SOME OF THAT EQUIPMENT.

SO WHAT WE'RE LOOKING AT NOW IS THE NEED TO REPLACE ALL THE HARDWARE.

AND I WANT TO SPECIFY THE HARDWARE IS DIFFERENT IN THE RADIO SYSTEM FROM THE SOFTWARE, LIKE ANYTHING ELSE IN THE SOFTWARE WAS ACTUALLY REPLACED IN A PARTNERSHIP IN 2019 THAT THE CITY WENT INTO WITH ASU AND IN [INAUDIBLE] IN THE CITY OF FLAGSTAFF IN THAT 2010 BOND THAT WAS A PARTNERSHIP BETWEEN THE CITY OF FLAGSTAFF AND IN [INAUDIBLE].

AND SINCE THAT TIME, THE RADIOS HAVE BEEN UTILIZED AND ALL THE DIFFERENT EQUIPMENT.

IT'S REPLACED WHEN YOU GET NEW EQUIPMENT OR IT'S JUST MOVED MORE APPROPRIATELY, A LOT OF TIMES IT'S PULLED OUT OF THE OLD UNITS AND PUT INTO THE NEW ONE.

SO WE'RE CURRENTLY IN A POSITION WHERE WE HAVE OUT-OF-DATE RADIOS, AND WHEN I SAY OUT OF DATE, I WANT TO BE REAL CLEAR.

THEY STILL FUNCTION.

THEY WORK AND THEY'RE OPERATIONAL.

BUT IF THEY DO HAVE ANY TYPE OF REPAIR NEED OR AN ISSUE OR ANY MINOR OR MAJOR REPAIRS, THEN IT'S REALLY DIFFICULT TO GET THOSE BACK THROUGH IN FUNCTIONING CAPACITY BECAUSE THE MOTOROLA, WHO WAS THE VENDOR FOR THAT, NO LONGER SUPPORTS THOSE BECAUSE ANYTHING OVER 10 YEARS OLD OR SEVEN YEARS OLD, YOU START HAVING A HARD TIME FINDING REPLACEMENT PARTS AND IT'S UNSUPPORTED.

SO THAT'S WHERE WE FIND OURSELVES WITH THE MOBILE AND HANDHELDS THAT WE HAVE A REPLACEMENT NEED, NOT ONLY WITHIN THE FLAGSTAFF POLICE DEPARTMENT, THE FIRE DEPARTMENT, BUT ALSO IN PUBLIC WORKS.

IT'S USED WITH FACILITIES, SO THERE'S MULTIPLE DIVISIONS WITHIN THE CITY THAT UTILIZE THIS 800 SYSTEM AND THE HARDWARE THAT'S NEEDING TO BE REPLACED.

SO WE'RE LOOKING AT A TOTAL COST, WHICH INCLUDES SOME OF THE REPEATER TOWERS NEED TO BE UPGRADED FROM A HARDWARE STANDPOINT BECAUSE THEY'RE OLD.

WITH ALL OF THAT COMBINED, WE'RE LOOKING AT A TOTAL COST OF $2.7 MILLION.

I PUT IN THERE A 15 PERCENT INFLATIONARY RATE.

I'LL JUST PUT OUT A QUALIFIER THAT THAT'S A GUESS.

WE'RE LOOKING AT THE CURRENT INFLATIONARY RATE LAST YEAR, THIS YEAR.

WE'RE ALSO SEEING THAT A LOT OF OUR EQUIPMENT IS AVERAGING BETWEEN SEVEN TO 12 PERCENT IN THE LAST 18 MONTHS INCREASED.

SO WE JUST PUT AN INFLATIONARY PERCENTAGE IN THERE TO MAKE SURE THAT WE RECOVERED IT FROM A BOND PERSPECTIVE.

ALL IN ALL. TOTAL COST IS TWO POINT SEVEN ONE FIVE PLUS THE FOUR POINT FIFTEEN EQUALS THREE POINT ONE SIXTY FIVE MILLION.

FOR THIS, ONE OF THE THINGS THAT WHEN WE WENT TO THE BOND COMMITTEE THAT WAS REQUESTED AND WE ARE BRINGING THAT TO YOU IS THAT WE WOULD RANK THESE CHRONOLOGICALLY.

THEY'RE ALL NEEDS, THEY'RE ALL IMMINENT, NEEDS THEIR SAFETY NEEDS WITHIN ALL THE AGENCIES, WHETHER IT'S THIS JOINT ONE OR WHETHER IT'S FIRE TO COME.

BUT IN A RANKED ORDER, WE PUT THIS AS A PRIORITY NUMBER ONE BECAUSE IT OBVIOUSLY HAS A GREATER FOOTPRINT BY IMPACTING MORE DIVISIONS.

AND BEFORE I GET OFF OF THIS ONE, I JUST WANT TO SEE IF THERE'S ANY SPECIFIC QUESTIONS REGARDING THE COMMUNICATION EQUIPMENT.

OK. SEEING NONE I WILL GO TO THE NEXT SLIDE.

ACTUALLY, WE HAVE COUNCIL MEMBER SHIMONI.

PERFECT. THANK YOU.

YUP. YES.

THANK YOU. HI, GOOD AFTERNOON.

AND THANKS FOR THE UPDATE SO FAR.

QUICK QUESTION. SO YOU MENTIONED THAT WHEN THEY DO BREAK OR NEED REPAIR, IT'S DIFFICULT.

I GUESS MY QUESTION IS JUST TRYING TO UNDERSTAND HOW MUCH OF A REAL NEED THIS IS HAVING MANY ITEMS THAT ARE OVER 10 YEARS OLD MYSELF.

I GET WHERE YOU'RE COMING FROM AND I KNOW THIS IS A DIFFERENT ISSUE THAN A PERSONAL ISSUE. IT'S A SYSTEM ISSUE.

BUT I GUESS MY QUESTION IS HOW OFTEN ARE THEY BREAKING? IS IT SIGNIFICANT TO THE POINT THAT WE REALLY, AS A COUNCIL BODY AND AS A CITY SHOULD REALLY BE LOOKING AT REPLACING IT ALL? OR IS IT SOMETHING THAT IS A HASSLE, BUT SOMETHING WE CAN DEAL WITH? GO AHEAD. SURE, THANK YOU.

COUNCIL MEMBER SHIMONI, TO ANSWER YOUR QUESTION, I THINK THE THE BOTTOM LINE ANSWER IS

[04:45:03]

WHEN WE PURCHASED AS AN EXAMPLE ON THE FIRE SIDE, WHEN WE PURCHASED RADIOS, WE PURCHASED ONE FOR EVERY SINGLE INDIVIDUAL WITHIN THE DEPARTMENT.

WE HAVE SINCE CHANGED THAT METHODOLOGY AND NOW WE ONLY HAVE FOUR ASSIGNED TO EACH SPECIFIC UNIT BECAUSE IT REDUCED THE NUMBER OF UNITS WE HAD BECAUSE WE WERE LOSING THEM BECAUSE OF THE SUPPORT IN THE INABILITY TO REPLACE THEM.

SO THAT'S AN EXAMPLE, IF YOU WILL, OF HOW WE'RE DEALING WITH IT AS WE MOVE FORWARD.

SO TO ANSWER THE QUESTION FROM A HARDWARE FROM THE RADIO THERE USED EVERY DAY BY EVERY MEMBER AND THEY GET DROPPED A LOT THERE ON SCENES A LOT.

THERE'S A LOT OF DIFFERENT IMPACTS THAT HAPPEN TO THEM THROUGHOUT THAT PUT THEM OUT OF SERVICE. AND SO IT'S CERTAINLY ONE OF THOSE QUESTIONS OF IS THIS THE MOST APPROPRIATE TO REPLACE THEM ALL? WE FEEL LIKE GIVEN THE DIFFICULTIES AND THE CHALLENGES WITHIN THE GENERAL FUND CAPACITY OF THE DEMANDS THAT ARE ON THAT AND THE AVAILABLE FUNDING THAT THIS IS OUR BEST OPTION TO BE ABLE TO GET ALL OF THOSE REPLACED FOR ALL THE DIVISIONS.

AND SPEAKING ON THE REPEATER TOWERS COUNCIL MEMBER SHIMONI, THAT'S A THAT'S A HIGH PRIORITY MEAN AS WELL BECAUSE THOSE REPEATERS BROADCAST EVERYTHING TO THE ENTIRE CITY FOR MULTIPLE JURISDICTIONS THAT COME ONTO THE CITY'S RADIO AND ARE SUPPORTED FOR RESPONSE CALLS. SO I KNOW I'M NOT ANSWERING IT TOTALLY DIRECTLY, BUT IT'S A HARD ONE BECAUSE WE DO HAVE THEM GOING DOWN, BUT IT'S A HIGH PRIORITY NEED FOR US.

I HEAR YOU AND I APPRECIATE THAT.

DEPUTY CHIEF WILSON, THANK YOU.

YOU BET. OK, NEXT SLIDE, PLEASE.

SO THE NEXT SLIDE REVOLVES AROUND APPARATUS REPLACEMENT, SPECIFICALLY WITHIN THE FLAGSTAFF FIRE DEPARTMENT AND FROM OUR MEETING BACK IN SEPTEMBER, WE TALKED ABOUT THERE'S BEEN A LOT OF THINGS THAT HAVE BROUGHT THIS INTO FACTOR, BUT WE RECOGNIZE THAT THROUGH A LOT OF DIFFERENT MEASURES THROUGH THE RECESSION IN 08, THE CHANGE OF THE OVERALL PROCESS OF WIND REPLACEMENTS WERE TAKEN INTO CONSIDERATION AND ONCE AGAIN, THE DIFFICULTIES IN SUPPORTING SOME OF THOSE GENERAL FUND DEMANDS FOR HIGHER PIECES OF EQUIPMENT SUCH AS FIRE APPARATUS. THESE ARE NOT CHEAP, AS YOU CAN SEE AS WE'RE GOING THROUGH THESE.

WE ALSO HAVE SEEN BUILDING CONFIGURATIONS OF YOU ALL KNOW, HAVE CHANGED.

WE'VE BECOME MORE ELEVATED, HIGHER DENSITY THAT HAVE ALSO ADDED TO SOME OF THE RISKS AND SOME OF THE DEMANDS FOR UNITS LIKE A QUINT, WHICH IS AN AERIAL APPARATUS.

AS YOU SEE ON THAT LOWER LEFT ALLOWS US TO VERTICALLY ELEVATE UP FOR DEFENSIVE FIRE STREAMS, FOR RESCUE, FOR A LOT OF DIFFERENT COMPONENTS IN IT ALSO FUNCTIONS AS A TOOLBOX FOR NOT ONLY MBAS BUT STRUCTURAL FIRES, EMS CALLS AND A LOT OF DIFFERENT TYPE RESPONSE MODELS. SO WHEN WE'RE LOOKING AT THE REPLACEMENT DEMANDS, WE HAVE TWO UNITS THAT FALL INTO A HIGH PRIORITY CATEGORY FOR US THAT ARE NEEDING TO BE REPLACED THAT DO NOT HAVE GENERAL FUND MONEY ALLOCATED FOR IT.

I'LL PAUSE RIGHT THERE AND SAY WE DO A GREAT JOB AS A CITY.

WE HAVE A FLEET COMMITTEE AND WE HAVE ABOUT SEVEN HUNDRED AND SEVENTY FIVE THOUSAND DOLLARS ALLOCATED EVERY YEAR FOR FLEET REPLACEMENT WITHIN THE CITY.

BUT WE WORK COLLECTIVELY VERY, VERY CLOSELY TO MAKE SURE THAT ONE DEPARTMENT OR DIVISION DOESN'T COME IN AND EAT ALL OF THAT UP.

SO WE'VE BUILT AS AN EXAMPLE IN THE FIRE DEPARTMENT AN EIGHT YEAR REPLACEMENT PLAN CAPITAL REPLACEMENT PLAN, AND WE'VE MARRIED THAT WITH ALL THE OTHER REPLACEMENT NEEDS WITHIN THE CITY.

AND WHAT WE'RE SEEING IS EVEN WHEN WE BUDGET THOSE OUT AND TRY NOT TO TAKE ALL THAT MONEY, THE APPARATUS YOU'RE GOING TO SEE TODAY FALL OUTSIDE OF THE CAPACITY THAT'S SET ASIDE WITH THAT FLEET FUNDING CURRENTLY IN THE GENERAL FUND.

SO THE QUINT IS 23 YEARS OLD.

IT'S THE ONE THAT YOU SEE ON THE LOWER LEFT THERE, AND THE REPLACEMENT COST FOR A QUINT IS ONE POINT SEVENTY FIVE MILLION DOLLARS FOR A QUINT, AND THAT IS THE NUMBER ONE PRIORITY FOR THE APPARATUS.

IT'S OBVIOUSLY NUMBER TWO IN THE OVERALL PUBLIC SAFETY.

AND THEN THE SECOND ONE IS ARE ALL RISK PUMPER.

WE DO HAVE TO PUMPERS THAT ARE BEING REPLACED AND ARE PART OF THAT GENERAL FUND PROCESS THAT I TALKED ABOUT OVER THE NEXT FOUR TO FIVE YEARS, BUT WE'RE STILL FAR ENOUGH BEHIND THAT. WE HAVE FOUR UNITS FRONT LINE CURRENTLY.

WHEN YOU COMBINE THEM ALL THAT WERE OVER 20 PLUS YEARS OLD AND ARE GETTING A LOT OF WORK.

WE'RE VERY, VERY AWARE THAT FLAGSTAFF HAS INCLEMENT WEATHER FREEZING HOT, COLD UP DOWN AND WE RUN A LOT OF CALLS IN THESE UNITS.

THESE ALL RISK PUMPERS, OUR WORKHORSE, IF YOU WILL, THEY CARRY EVERYTHING.

THEY RUN TO NOT ONLY MEDICAL CALLS, BUT FIRE CALLS.

[04:50:01]

THAT IS A DIFFERENT NUMBER THAN WHAT I'VE PRESENTED TO YOU ALL IN SEPTEMBER.

AND THE REASON IS IS BECAUSE WE ARE WORKING WITH MULTIPLE VENDORS TO TRY TO IDENTIFY ELECTRIC VEHICLES, ELECTRIC FIRE ENGINES IN THIS CASE.

AND THE BEST GUESS AS WE'RE LOOKING FORWARD TO THIS PROCESS IS IT'S ABOUT A $1.5 MILLION PRICE TAG, DEPENDING UPON WHICH VENDOR WE SELECT FOR AN ELECTRIC FIRE ENGINE, WHICH WE THINK WOULD BE REALLY AN AMAZING FEAT TO TRY TO HELP CONTINUE TO SUPPORT THE COUNCIL GOALS AND CARBON NEUTRALITY AS WE MOVE AHEAD.

SO THERE IS A CHANGE IN THAT ONE.

TOTAL COST THREE POINT TWENTY FIVE PLUS THE FOUR POINT NINETY OF INFLATION IS THREE POINT SEVENTY FOUR ZERO FOR THOSE TWO.

NEXT SLIDE. THE NEXT PIECES OF APPARATUS ARE SPECIFIC TO WILDFIRE.

AS YOU ALL KNOW, WE LIVE IN A BEAUTIFUL LOCATION, ONE OF THE LARGEST PONDEROSA PINE FORESTS IN THE NATION. AND SO WHEN WE LOOK AT THE RISKS THAT WE HAVE HERE, WE RECOGNIZE THAT WE CAN'T COVER ALL THE BASES.

WE DO EVERYTHING WE CAN IN A LOT OF OTHER MITIGATION MEASURES.

BUT ONE OF THOSE IS TO BE ABLE TO RESPOND AS A CITY IN A COMMUNITY TO THE THREAT OF WILDFIRE WITH OUR OWN APPARATUS, JUST LIKE ALL THE OTHER PIECES OF APPARATUS.

ALL BUT ONE STATION RIGHT NOW HAS ONE CREW, ONE THREE PERSON CREW SHARES AND RESPONDS IN WHICHEVER PIECE OF APPARATUS IS THE MOST APPROPRIATE.

SO IF IT'S AN EMS, THEY'LL RESPOND IN THAT TYPE ONE ENGINE.

IF IT'S A FIRE THAT'S ELEVATED, IF THERE'S A QUINT THERE, THEY'LL TAKE THAT ONE.

IF IT'S A WILDFIRE, THEY'LL TAKE ONE OF THESE UNITS.

SO WE DON'T HAVE STAFF IN EVERY ONE OF THESE.

WE HAVE ONE SPECIFIC CREW ASSIGNED TO A STATION AND WE HAVE MULTIPLE PIECES OF APPARATUS WITHIN THAT THAT THEY THEN SELECT BASED OFF OF THE TYPE OF CALL.

SO THESE TWO WILD FIRE ENGINES THAT YOU'RE SEEING ON THE LOWER LEFT, THESE ARE 21-YEAR OLD, THEIR SISTER UNITS.

THERE ARE A MILLION DOLLARS TO REPLACE BOTH OF THEM THERE, JUST RIGHT AROUND $500,000 APIECE TO SPEC THEM AND REPLACE THEM TO THE NEW STANDARDS.

AND WHEN WE'RE LOOKING AT 21-YEAR OLD APPARATUS, WHETHER IT'S QUINT'S ENGINES, WATER TENDERS OR THESE WILD FIRE ENGINES, THERE'S A LOT OF SAFETY COMPONENTS THAT ARE OUT OF DATE. AND THE WAY THAT WE STAY UP ON SOME OF THOSE IS WE TRY TO DO THE BEST THAT WE CAN IN INTEGRATING THAT.

BUT A LOT OF THAT IS PART OF THE ACTUAL UNIT ITSELF AND ITS DESIGN AND MODEL.

SO THESE UNITS RIGHT HERE ARE TWENTY ONE YEARS OLD.

WE HAVE SOME ISSUES WITH THEM.

AS YOU RECALL, IN SEPTEMBER, WE TALKED ABOUT HOW THESE UNITS, ONE OF THESE UNITS, WAS OUT OF SERVICE FOR 60 PERCENT OF THE YEAR DUE TO SOME FAILINGS WITHIN IT.

SO THESE ARE HIGH PRIORITIES FOR US AS WELL.

THE ENGINES, THE WILDFIRE ENGINES ARE PRIORITY NUMBER FOUR IN THE RANKING AND THEN THE WATER TENDERS. WE UTILIZE THOSE FOR OBVIOUSLY WILDFIRE.

WE ALSO UTILIZE THEM TO BRING WATER TO AREAS THAT DO NOT HAVE HYDRANTS, FREEWAY FIRES, INCIDENTS ON THEM, CAR FIRES ON THE FREEWAY, LARGE COMMERCIAL OR SEMI TYPE VEHICLES.

WE UTILIZE THAT WATER TENDER.

WE PUT THAT AS NUMBER SIX BECAUSE IT'S NOT USED AS MUCH.

EVEN THOUGH IT'S OLDER, WE FEEL LIKE IT'S THE LOWER PRIORITY OUT OF ALL OF THE APPARATUS THAT WE'RE LOOKING FOR TO BE REPLACED.

THE ESTIMATED COST COMBINED IS ONE POINT NINE PLUS THE 285 INFLATION GIVES US A TWO MILLION ONE EIGHTY FIVE TOTAL FOR THE WILDFIRE APPARATUS.

NEXT PAGE, PLEASE.

THIS IS A NEW ONE FOR THE COUNCIL.

THIS IS ONE AS WE CONTINUE TO WORK THROUGH THE PROCESS.

WE RECOGNIZE WE'VE GOT CURRENTLY A STORAGE CAPACITY MEAN ISSUE.

AND WHEN WE TALKED ABOUT THAT, HOW THE CREWS WILL SELECT WHICH TYPE OF APPARATUS YOU CAN SEE. CERTAIN STATIONS MIGHT HAVE FOUR TO FIVE PIECES OF APPARATUS, WITH ONE CREW DOING A SELECT ON WHAT THAT RESPONSE MODEL IS.

ONE THING THAT ALSO CREATED SOME OF THIS ISSUE WAS IN 2006 THE BOND, ACTUALLY IN 2004, WAS APPROVED IN 2006 AND SEVEN WHEN WE WERE DESIGNING OUR STATIONS WITH THAT BOND FOR THE STATION RELOCATION PROGRAM PROJECT.

THE SCOPE OF WORK IDENTIFIED IN '06 '07, SO YOU MIGHT REMEMBER WE WERE KIND OF AT THE HIGH END OF THE COST OF PROPERTY AT THAT TIME.

THE COST OF BUILDING MATERIALS AND THE AVAILABILITY OF CONTRACTORS.

SO WHEN WE WENT OUT TO BID TO BUILD OUR STATIONS, WHAT WE REALIZED DUE TO THE SCOPE OF WORK WAS WE NEED TO REDUCE THE OVERALL COST TO KICK OFF THAT PROGRAM BASED OFF THOSE TWO THOUSAND SIX AND SEVEN PRICE POINTS.

AS A RESULT, UNFORTUNATELY, THE OUTCOME WAS WE HAD TO CUT A FULL TWO VEHICLE BAY ONE BAY, BUT IT HOLDS TWO PIECES OF APPARATUS OFF A MULTIPLE STATIONS IN ORDER TO GET THAT PROJECT

[04:55:06]

WELL, FAST FORWARD TO WHERE WE'RE AT TODAY AND WE HAVE A LOT OF APPARATUS SITTING OUTSIDE, NONE WITH WATER SITTING OUTSIDE THAT WE HAVE A HARD TIME WITH STORAGE AND MAKING SURE THAT NOT ONLY ARE THEY BEING KEPT OUT OF THE ELEMENTS, BUT THEY'RE SECURE BECAUSE THEY HAVE A LOT OF HIGH DOLLAR EQUIPMENT WITHIN THEM.

SO IN THIS BOND, WE'RE REQUESTING THAT THE STORAGE NEEDS BE ADDRESSED.

AND SO WE'RE LOOKING FOR SOME TYPE OF A METAL BUTLER STYLE BUILDING IS THE CHEAPEST ROUTE TO BE ABLE TO PUT UP ON CURRENT CITY OWNED PROPERTY AND THEN THE COST ASSOCIATED WITH THOSE WE BROKE THEM INTO TWO SEPARATE ONES A TWO BAY AND A THREE BAY, AND WE OBVIOUSLY PRIORITIZED THE THREE BAY HIGHER BECAUSE WE GET MORE BANG FOR THE BUCK IN THE OVERALL PROCESS OF BRINGING A THREE BAY INTO OUR CAPACITY TO STORE OUR FLEET AND APPARATUS.

SO THE TOTAL COST FOR THAT IS ONE POINT THIRTY EIGHT.

AND THEN THE TWO BAY AND THE THREE BAY ASSOCIATED WITH THAT ARE BROKEN OUT INTO PRIORITY NUMBER FIVE. AND OBVIOUSLY THE LEAST OF THE PRIORITIES THROUGH THIS ENTIRE ONE WOULD BE THE ADDITIONAL TWO BAY.

SO A GRAND TOTAL OF EVERYTHING INCLUDED ON THIS PUBLIC SAFETY BOND IS TEN POINT FOUR SEVEN ZERO. THAT INCLUDES ALL THE INFLATIONARY PROJECTIONS AND ALL THE PRIORITIES INCLUDED.

AND THAT CONCLUDES WHAT I HAVE, AND I'M CERTAINLY OPEN FOR ALL OF THE QUESTIONS.

ALL OF THE QUESTIONS, THIS IS YOUR CHANCE COUNCIL.

WE HAVE ANYBODY? IT WAS THAT IT WAS THAT THOROUGH.

THANK YOU. THANK YOU.

ALL RIGHT. NICOLE CAN I ADD ONE THING? I SUPPOSE.

OH MY GOSH. I'M SORRY ANYWAY.

GOT A LOT TO SAY [INAUDIBLE] MEETINGS.

DEPUTY WILSON, I JUST WANT TO SAY, YOU KNOW, I'M EXCITED ABOUT ALL THIS.

I'M CURIOUS TO SEE WHAT THE BOND COMMITTEE PROPOSALS ARE AND HOW THIS ALL PROGRESSES.

BUT I DO BELIEVE THAT IF WE PLACE A PUBLIC SAFETY BOND ON THE BALLOT, IT WILL PASS.

AND SO I THINK THAT THIS IS A GOOD OPPORTUNITY TO TAKE ADVANTAGE OF OF THAT SUPPORT.

AND I APPRECIATE YOU WORK ON ALL THIS.

THANK YOU. THANK YOU, COUNCIL MEMBER SHIMONI.

ALL RIGHT. OK.

SO I THINK WE ARE ON TO CARBON NEUTRALITY.

LET'S DO THIS. HEY, THANK YOU.

HELLO, GOOD AFTERNOON, MAYOR AND COUNCIL NICOLE ANTONOPOULOS, SUSTAINABILITY DIRECTOR, I APPRECIATE THIS OPPORTUNITY TO DISCUSS THE PROPOSED CARBON NEUTRALITY PROJECTS THAT ARE BEING PRESENTED TO THE CITIZEN BOND COMMITTEE LATER THIS MONTH FOR CONSIDERATION.

AND FIRST OF ALL, I HAVE TO SAY REALLY EXCITED JUST TO HEAR THE PREVIOUS PRESENTATIONS.

AND AS YOU CAN SEE, AND THERE IS A THEME WITH THE WORK THAT THE CITY ORGANIZATION IS DOING IN TERMS OF TAKING CLIMATE ACTION.

WHAT WE'RE GOING TO TALK ABOUT TODAY ARE EIGHT COMPREHENSIVE PROJECTS THAT ARE BEING PROPOSED THAT SUPPORT EVERY FOCUS AREA OF THE CARBON NEUTRALITY PLAN, BUT THEY DO GO MUCH FURTHER THAN JUST THE CARBON NEUTRALITY PLAN.

THESE PROJECTS TO PROVIDE MUCH NEEDED RESOURCES TO OUR COMMUNITIES, OUR RESIDENTS, AND OUR BUSINESSES. THEY PROVIDE OPPORTUNITIES FOR SAVING MONEY, IMPROVING EQUITY, SUPPORTING MARKET SHIFTS, BUSINESS TRAININGS, ENERGY SECURITY, BUSINESS DEVELOPMENT, AND EVEN SUPPORTING HOUSING.

I'M GOING TO TAKE THE NEXT FEW MINUTES TO PROVIDE A VERY HIGH LEVEL OVERVIEW OF EACH PROJECT, AND THE PLAN IS TO STAY WITHIN THE TIME THAT I'VE BEEN ALLOTTED.

SO NEXT SLIDE, PLEASE.

BEFORE I BEGIN, I DO WANT TO MAKE SURE IT'S CLEAR THAT THE PROJECT BEING PROPOSED TO THE CITIZEN BOND COMMITTEE FAR EXCEED THE CITY'S ON CAPACITY SUSTAINABILITY HAS BEEN TASKED WITH DEVELOPING A ROBUST AND IMPACTFUL INITIATIVE, WHICH IS WHAT IS BEFORE YOU THIS AFTERNOON. OK, SO BEGINNING WITH HEALTHY AND EFFICIENT HOMES, THIS INITIATIVE WOULD PRIORITIZE HOME HEALTH, SAFETY, AND ENERGY EFFICIENCY THROUGH FIVE COMPONENTS.

THE FIRST PART IS THE RESIDENTIAL ENERGY EFFICIENCY RETROFIT PROGRAM, WHICH WOULD BE BASED ON A SLIDING INCOME SCALE TO REMOVE FINANCIAL BARRIERS AND INCREASE ACCESS TO THE COST SAVINGS AND RETURN ON INVESTMENT FROM ENERGY EFFICIENCY MEASURES.

THIS PROGRAM WOULD BE AVAILABLE NOT ONLY TO HOMEOWNERS BUT TO ALSO RENTAL UNITS.

THIS IS A REBOOT OF THE AWARD WINNING, FEDERALLY FUNDED PROGRAM WE OFFERED IN 2009.

SO NEXT PART IS THE EXPANSION OF THE EXISTING ENERGY REBATE PROGRAM, WHICH WOULD OFFER

[05:00:02]

WE WILL USE THIS TO ACCELERATE ENERGY EFFICIENCY, REDUCE ENERGY BILLS ACROSS INCOME BRACKETS, AND HOME ELECTRIFICATION THAT INCREASES THE NEED FOR RENEWABLE ENERGY ON THE ELECTRIC GRID. THE THIRD PART IS THE MULTIFAMILY HOUSING RETROFIT PROGRAM.

SIMILAR, IT WOULD REMOVE FINANCIAL BARRIERS FOR LANDLORDS, THOUGH, TO IMPLEMENT ENERGY EFFICIENCY MEASURES AND CREATE HEALTHIER HOMES.

IT WILL BE AVAILABLE TO OWNERS OF MULTIFAMILY PROPERTIES, WITH MORE THAN 50 PERCENT OF THE TENANTS WHO FALL INTO LOW OR MODERATE INCOME BRACKETS.

THE NEXT PART IS AN ENERGY EFFICIENCY AND RENEWABLE ENERGY LOAN PROGRAM THAT WOULD ALLOW RESIDENTIAL PROPERTY OWNERS ACCESS TO A SMART LOAN GUARANTEE AND INTEREST BUY DOWN PROGRAM FOR THE RESIDENTIAL SECTOR.

AND THE FINAL PART IS SIMILAR TO PREVIOUS MENTION EFFORT, AND IT'S MODELED OFF OF OUR 2009 RETROFIT PROGRAM, AND THIS WOULD ACCELERATE WEATHERIZATION AND ENERGY EFFICIENCY WORKFORCE DEVELOPMENT IN THE REGION.

MOVING ON TO THE ENERGY INDEPENDENCE INITIATIVE, THE FIRST PART OF THIS WOULD PROVIDE 100 PERCENT CLEAN RENEWABLE POWER FOR ALL CITY OF FLAGSTAFF FACILITIES, INCLUDING WATER AND WASTEWATER PRODUCTION, WHICH IS OUR LARGEST ENERGY USER.

AND JUST LAST FISCAL YEAR, WE SPENT ALMOST $4 MILLION IN WATER AND WASTEWATER PRODUCTION.

SO A REALLY IMPORTANT COMPONENT OF THIS INITIATIVE.

THE SECOND PART OF THIS INITIATIVE IS ABOUT IMPROVING OVERALL RESILIENCE, SELF-RELIANCE, DEPENDABILITY, EMERGENCY RESPONSE SERVICES AND ENERGY EFFICIENCY.

IT WOULD PROVIDE SOLAR AND BATTERY MICROGRIDS AT EMERGENCY RESPONSE FACILITIES, INCLUDING ALL CITY FIRE STATIONS, THE POLICE DEPARTMENT AND THE FLAGSTAFF AIRPORT.

THE MICROGRIDS WOULD INCLUDE SOLAR CONNECTED TO BATTERY BACKUP SYSTEMS OR LOOPED INTO A LARGER MICROGRID NETWORK, ENABLING THESE FACILITIES TO CREATE THEIR OWN ENERGY ON SITE AND OPERATE THROUGH POWER OUTAGES, ENHANCING EMERGENCY RESPONSE AND COMMUNITY SERVICES DURING CRISIS SITUATIONS.

NEXT SLIDE. THE NEXT PROPOSED PROJECT IS SAFE AND ACCESSIBLE BIKE AND PEDESTRIAN INFRASTRUCTURE. WE WILL FOCUS ON CLOSING THE FUNDING GAP FOR SAFE BIKE AND PEDESTRIAN FACILITIES, PROVIDING BIKE AND PEDESTRIAN INFRASTRUCTURE UPGRADES TO CREATE A SAFER WALKING AND BIKING ENVIRONMENT IN FLAGSTAFF AND TO ADVANCE THE ACTIVE TRANSPORTATION MANAGEMENT PLAN. FLAGSTAFF HAS MILLIONS OF DOLLARS IN UNMET BIKE AND PEDESTRIAN NEEDS, INCLUDING PRIMARY BIKE WAYS, MAJOR FOOT TRAILS, PEDESTRIAN CROSSINGS AND PROTECTED BIKE LANES. THE NEXT INITIATIVE IS THE COMMUNITY HEALTH AND RESILIENCY INITIATIVE, WHICH WOULD TRANSFORM CITY RECREATION FACILITIES INTO NEIGHBORHOOD BASED RESILIENCE HUBS.

THESE WOULD PROVIDE REFUGE AND RESOURCES IN BOTH SMALL AND LARGE SCALE EMERGENCIES AND ALLOW THE CITY TO PREPARE FOR AND RESPOND TO AN INCREASE IN EXTREME WEATHER EMERGENCIES AND SMOKE EVENTS.

THE HUBS WILL INCLUDE ENHANCED AIR FILTERING AND POWER DURING OUTAGES THAT WOULD BE MADE AVAILABLE TO THE COMMUNITY.

THE HUBS WOULD PROVIDE REFUGE FROM PLACE FOR HEALTHY AIR ON SMOKY DAYS TO A PLACE TO MEET MEDICATION REFRIGERATION NEEDS DURING POWER OUTAGES.

LOCATIONS WOULD BE CHOSEN BASED ON COMMUNITY CONNECTIONS TO VULNERABLE RESIDENTS, PARTICULARLY LOW INCOME FAMILIES AND SENIORS.

THE SECOND PART OF THIS IS AN EXPANSION ON OUR HEPA FILTRATION SYSTEM GRANT PROGRAM THAT WE RAN LAST SUMMER.

VULNERABLE RESIDENTS WOULD HAVE ACCESS TO HELP.

EXCUSE ME, HEPA FILTERS TO ASSIST THEM ON UNHEALTHY AIR DAYS, WHICH ARE EXPECTED TO INCREASE IN FREQUENCY DUE TO INCREASED WILDFIRE SMOKE ALLERGENS AND HEAT FILTERS WILL BE GRANTED TO BREATHING IMPAIRED AND SMOKE SENSITIVE RESIDENTS WHO CANNOT UPGRADE THEIR HVAC SYSTEMS. NEXT SLIDE. MOVING ON, THE ACCESSORY DWELLING UNITS INFILL ACCELERATOR IS A BIT OUTSIDE OF OUR STANDARD SUSTAINABILITY PROGRAMS. ACCESSORY DWELLING UNITS ARE ALSO KNOWN AS [INAUDIBLE], WHICH ARE SMALL HOMES BUILT IN BACKYARDS, AND THEY HAVE A WIDE RANGE OF BENEFITS, INCLUDING BRINGING MORE HOMES AND FAMILIES INTO OUR EXISTING NEIGHBORHOODS.

THIS MEANS THAT THEY HAVE IMPORTANT TRANSPORTATION BENEFITS, HELPING FOLKS CHOOSE BIKING AND WALKING OR EVEN THE BUS, BECAUSE MANY OF THESE WILL BE SERVED BY TRANSIT AND LOCATED

[05:05:01]

ADUS ALSO INCREASE HOUSING SUPPLY.

INCREASINGLY IMPORTANT FACTOR FOR ANYONE RENTING IN TOWN AND WHILE HELPING PROPERTY OWNERS HAVE AN EXTRA INCOME STREAM AND MAKE THE BEST USE OF THEIR PROPERTIES.

WITH THIS LONG LIST OF BENEFITS, IT'S CLEAR IF WE ACCELERATE THE CREATION OF ADUS, WE CAN WORK TOWARDS MANY COMMUNITY GOALS AND WE WANT TO INCENTIVIZE ISD USE BY CREATING A PRE-APPROVED SET OF PLANS THAT ANYONE CAN USE.

AND CITIES ACROSS THE U.S.

ARE DOING THIS TO INCREASE THE NUMBER OF ISSUES EFFECTIVELY IN THEIR COMMUNITIES, AND WE ALSO WANT TO PROVIDE AN INCENTIVE FOR THOSE WHO BUILD ADUS TO GET MORE BUILT.

THE NEXT PROJECT IS THE HEALTHY HOMES AND STOVE PROGRAM, AND IT'S A SIMPLE PROJECT BUT EXCITING. THIS PROGRAM WILL PROVIDE REBATES FOR ANY RESIDENTS WHO UPGRADE TO A NEW EPA CERTIFIED WOOD BURNING STOVE.

WE HAVE OLD, INEFFICIENT STOVES THROUGHOUT OUR COMMUNITY AND NEIGHBORHOOD LEVEL SMOKE ISSUES IN THE WINTER.

UPGRADING THESE STOVES TO MORE EFFICIENT STOVES HAS MANY BENEFITS FOR OUR COMMUNITY, AND IT WILL HELP RESIDENTS SAVE TIME AND MONEY BECAUSE THESE STOVES REQUIRE 30 PERCENT LESS WOOD. NEXT SLIDE.

THE NEXT PROJECT IS THE COMMUNITY ELECTRIC MOBILITY PROJECT, WHICH HELPS [INAUDIBLE] ELECTRIC MOBILITY REVOLUTION COME TO FLAGSTAFF WITH A PARTICULAR EMPHASIS ON OUR MOST VULNERABLE RESIDENTS.

THE FIRST PART OF THIS PROJECT IS THE DEVELOPMENT OF A CITY OPERATED BIKE SHARE SYSTEM TO SERVE FLAGSTAFF RESIDENTS AND OUR VISITORS.

BIKE SHARE SYSTEMS PROVIDE AFFORDABLE AND EASY TO USE TRANSPORTATION OPTIONS, REDUCING RELIANCE ON VEHICLES AND COMPLEMENTING TRANSIT.

BIKE SHARE SYSTEMS ARE HEAVILY USED BY STUDENTS AND VISITORS, AND THIS WAS DEMONSTRATED DURING FLAGSTAFF BRIEF BIKE SHARE PILOT BACK IN 2018.

CITY OPERATED BIKE SHARE SYSTEMS PROVIDE MORE PROGRAM CONTINUITY AND RESPONSIVENESS THAN PRIVATELY OWNED SYSTEMS, WHICH HAS OFTEN MORE VOLATILE FUNDING STRUCTURES.

THE SECOND PART OF THIS PROJECT IS A SUBSCRIPTION CAR SHARE PROGRAM IN FLAGSTAFF HOUSING AUTHORITY NEIGHBORHOODS.

VEHICLE OWNERSHIP IS AN INCREDIBLY COSTLY BURDEN FOR LOW INCOME FAMILIES, AND FLAGSTAFF.

CAR ENABLES HOUSEHOLDS TO ACCESS VEHICLES WHEN NEEDED, WHILE DRASTICALLY REDUCING REDUCING ANNUAL OWNERSHIP AND MAINTENANCE COSTS.

OPERATED BY THE CITY.

THE PROGRAM WOULD PROVIDE 15 ELECTRIC VEHICLES AND ACCOMPANYING ELECTRIC VEHICLE CHARGING INFRASTRUCTURE ACROSS THREE DIFFERENT SITES, AND THE FINAL PROPOSED PROJECT IS THE NORTHERN ARIZONA FOOD SYSTEM SUPPORT.

THIS PROJECT IS A MULTI-PRONGED APPROACH TO IMPROVE FOOD SECURITY IN NORTHERN ARIZONA.

SUPPORT MEASURES WOULD BE DEVELOPED TO SUPPORT FLAGSTAFF FOOD SYSTEMS, INCLUDING ADDITIONAL COMMUNITY GARDENS, INDOOR COMMUNITY GREENHOUSES, BUSINESS DEVELOPMENT ASSISTANCE, FOOD TO MARKET ASSISTANCE AND A REGIONAL COMMISSARY KITCHEN THAT ALLOWS ACCESS FOR MULTIPLE EMERGING COMMERCIAL BUSINESSES.

ENHANCING LOCAL FOOD PRODUCTION AND FLAGSTAFF WILL INCREASE OUR REGIONAL FOOD SECURITY AND RESILIENCE, WITH MANY BENEFITS OF LOWERING THE COST OF FOOD, IMPROVING HEALTH, AND PROVIDING BUSINESS OPPORTUNITIES.

NEXT SLIDE. MAYOR AND COUNCIL, I WOULD BE REMISS IF I DID NOT EMPHASIZE THAT THE CITY'S CARBON NEUTRALITY GOAL REQUIRES A SUSTAINED COMMITMENT, AND THAT COMMITMENT GOES BEYOND THE POTENTIAL BOND ITEMS THAT I'VE JUST HIGHLIGHTED.

THE NEXT TWO FIGHTS ARE ADDITIONS TO THE SLIDE THAT ARE NOT INCORPORATED IN THE AGENDA PACKET AS I AM JUST RETURNING FROM HOLIDAY.

BUT I DID FEEL THAT IT WAS IMPORTANT TO ADD THEM.

SO I APPRECIATE YOUR PATIENCE AS I NAVIGATE THESE TWO SLIDES VERY QUICKLY.

CITY COUNCIL DID ADOPT THE FLAGSTAFF CARBON NEUTRALITY PLAN IN JUNE OF 2021.

THEREFORE, THIS IS OUR FIRST CHANCE TO SPEAK WITH THE COUNCIL ABOUT A BUDGET ASSOCIATED WITH THIS PLAN. THESE TWO SLIDES HIGHLIGHT RESOURCE NEEDS FOR CLIMATE ACTION FOR THE NEXT FISCAL YEAR, AND THIS IS NOT INTENDED TO GET AHEAD OF THE CITY'S BUDGET PROCESS BY ANY MEANS, BUT RATHER TO ILLUSTRATE HOW WE MIGHT SUSTAIN FUNDING FOR THE CARBON NEUTRALITY PLAN. HIGHLY IMPACTFUL PROGRAMING WILL BE PROPOSED OUTSIDE OF THE [INAUDIBLE] DISCUSSION.

THESE INCLUDE PROGRAMS SUCH AS A FLOOD AREA RESILIENCY GRANT PROGRAM, TRAINING FOR BUSINESSES, WOOD STOVE REBATES, ASSISTANCE FOR A REVIEW OF CITY CODES THROUGH THE CARBON NEUTRALITY LENS, ELECTRIC BIKE REBATES AND RESIDENTIAL SOLAR REBATE.

NEXT SLIDE. A FEW MORE EXAMPLES INCLUDE CONTRACTOR TRAININGS EXPANDING EXISTING RESIDENTIAL ENERGY EFFICIENCY REBATES, EXTENDING THE FREE COMPOSTING DROP OFF SERVICE THAT WE PILOTED THIS YEAR, AND INCREASING FUNDS TO HELP SPARK BUSINESS DEVELOPMENT IN

[05:10:05]

I SHARE THIS INFORMATION THIS AFTERNOON BECAUSE THIS REPRESENTS OVER $1 MILLION IN NEW FUNDING REQUESTS.

I REALIZE THIS IS A LARGE NUMBER, YET IT ILLUSTRATES THE AGGRESSIVE GOALS OF THE CARBON NEUTRALITY PLAN AND THE, EXCUSE ME, THE TRANSFORMATIONAL WORK WE NEED TO DO ACROSS OUR COMMUNITY. EACH AND EVERY YEAR.

SO WITH THAT, I HOPE I STAYED WITHIN MY ALLOTTED TIME, AND I'M HAPPY TO ANSWER ANY QUESTIONS IF THERE ARE SOME.

ALL RIGHT, COUNCIL.

COUNCIL MEMBER SHIMONI, IT'S OPTIONAL, NOT MANDATORY.

ALL RIGHT. DO YOU HAVE A QUESTION? YOU KNOW, IN THE COURSE OF THIS LAST SLIDE IS NOT BEING PRESENTED AS PART OF THE THE BOND, RIGHT? CORRECT. OK.

SO I GUESS I'LL JUST MAKE MY COMMENT KNOWN THAT I SUPPORT OUR BUDGET TEAM WORKING TO IMPLEMENT AS MANY OF THESE AS POSSIBLE.

AS THE BUDGET CONVERSATIONS CONTINUE, I THINK THAT WE'VE DECLARED A CLIMATE EMERGENCY.

GOING BACK TO ORIGINAL COMMENT OF THE MORNING AND THIS NEEDS TO BE PRIORITIZED THROUGH OUR BUDGET PROCESS, REFLECTING OUR COMMUNITY VALUES.

SO I APPRECIATE YOU PUTTING THE SLIDE TOGETHER FOR US, NICOLE.

AND AND YEAH, I DON'T KNOW WHAT ELSE I CAN SAY, BUT I'LL LEAVE IT THERE.

THANK YOU. OK.

COUNCIL MEMBER MCCARTHY, YOU HAVE A COMMENT.

YEAH, JUST BRIEFLY, NICOLE, I THOUGHT THE IDEA OF PRE-APPROVED PLANS FOR ADUS WAS EXTREMELY INNOVATIVE.

I THINK ONE OF THE REASONS THAT THE COST OF HOUSING HERE IN FLAGSTAFF IS SO HIGH IS THAT IT SEEMS THAT EVERY HOUSE HAS TO GO THROUGH AN ARCHITECT AND BE DESIGNED FROM THE GROUND UP FROM SCRATCH.

WE'RE DOWN IN PHOENIX.

NOT THAT I LOVE PHOENIX BY ANY MEANS, BUT ESSENTIALLY ALL THE HOUSING DOWN THERE IS DONE IN TRACKS WHERE THEY WILL BUILD THE EXACT SAME FLOOR PLAN 100 TIMES, SO THAT DRAMATICALLY DECREASES THE COST PER HOUSE.

SO A GOOD IDEA.

THANK YOU. YOU.

ALL RIGHT, MARY, YOU HAVE YOUR HAND UP AS WELL ? MAYOR, I'M NOT SURE YOU'RE STILL ON MUTE, SO I'M NOT SURE IF YOU DO HAVE A QUESTION OR NO. I THOUGHT I'D MAKE IT THROUGH THE WHOLE RETREAT BEFORE I DID THAT, BUT I'M NOT.

I'LL CHECK IT OFF.

SO REGARDING THE ELECTRIC VEHICLE CHARGERS THAT YOU HAVE UNDERNEATH THE BIKE LINE ITEM OR REBATE? SO IS THIS UNDER CONSIDERATION OF THE FEDERAL GRANTS THAT ARE GOING TO BE AVAILABLE FOR EV CHARGERS AND OR JUST IN GENERAL? BECAUSE I'M NOT AWARE IS DID THE EV CHARGERS THAT ARE COMING OUT FROM THE FEDS REQUIRE MATCHING AT THE LOCAL LEVEL? MAYOR, THANK YOU. I ACTUALLY DON'T KNOW THE ANSWER TO THAT OFF THE TOP OF MY HEAD, AND I DO APOLOGIZE. I HAVE BEEN OUT OF TOWN, SO I AM JUST CATCHING UP.

IF STACEY BK IS AVAILABLE OR SARAH TO ANSWER THAT QUESTION OR AT LEAST THAT PIECE OF THE QUESTION, I WOULD APPRECIATE BEING ABLE TO DEFER TO THEM.

AND YOU KNOW, OF COURSE, WE ARE MONITORING EVERY OPPORTUNITY, AS HAS BEEN STATED THROUGHOUT THE RETREAT TODAY AT WHAT RESOURCES WE CAN BRING TO THE COMMUNITY THROUGH FEDERAL ASSISTANCE AND AND PRIVATE FOUNDATION ASSISTANCE AS WELL.

AND WE'RE NOT LIMITING OURSELVES BY ANY MEANS TO ONLY THE FEDERAL PROGRAMING THAT IS CURRENTLY UNDERWAY.

THANK YOU. STACEY, B.K., DO YOU HAPPEN TO HAVE ANY ADDITIONAL INFO ON ON THAT PART? AGAIN, I KNOW ALL I KNOW SO MUCH OF THIS IS STILL BEING ROUTED THROUGH THE VARIOUS FEDERAL AGENCIES OVERSEEING THEM AND THAT THE CRITERIA ARE ALWAYS VERY FORMED IN CERTAIN AREAS. I DO SEE, RICK, YOU'RE JUMPING IN HERE.

SO. YES, I AM NOT SBK.

I'M NOT STACEY.

STACEY NEEDED TO ATTEND A MEETING STAKEHOLDER MEETING FOR THE RAISE GRANT IN THAT APPLICATION PROCESS, SO SHE'S NOT AVAILABLE.

THAT'S A GOOD REASON TO BE NOT HERE.

[INAUDIBLE] YEAH.

OK, WELL, THEN.

WE CAN LOOK INTO THAT.

COOL. JUST AS ALWAYS LOOKING TO SEE WHERE WE CAN LEVERAGE FUNDS ELSEWHERE TO NOT BURDEN OUR LOCAL CITIZENS.

IF WE CAN, I DID WANT TO ASK ALSO WHEN YOU PRESENTED THIS FOR THE BONDS, IT WAS WAS THAT

[05:15:04]

SIMILAR TO HOW THE FIRE DEPARTMENT PRESENTED THEIR LIST OR IS THIS? I'M JUST WONDERING HAS WAS THAT THE PRIORITY LIST OR IS THAT STILL BEING FORMED? UM, MAYOR AND COUNCIL, WE ACTUALLY HAVEN'T PRESENTED YET TO THE CITIZEN BOND COMMITTEE, WE ARE GOING TO BE PRESENTING TO THEM LATER THIS MONTH AND TWO MEETINGS.

AND WE ARE NOT GOING TO BE PRIORITIZING PER SAY.

AND WHAT WE'VE WHAT WE'RE PROVIDING TO THE COMMITTEE IS ESSENTIALLY A FULL MENU OF IMPACTFUL ACTIONS.

WHEN WE DO DOVE INTO THE DETAILS WITH THE COMMITTEE, WE ARE GOING TO TALK ABOUT IMPACTS IN TERMS OF GREENHOUSE GAS EMISSION REDUCTIONS AND HOW FAR THIS HELPS ADVANCE TO OUR GOALS OF CARBON NEUTRALITY.

SO THEY ARE GOING TO GET IN.

WE'RE GOING TO BE ABLE TO GET INTO A LOT MORE DETAIL THAN WE HAVE TIME FOR TODAY.

SO WE'RE GOING TO BE PRESENTING THAT INFORMATION AS A FULL MENU OF OPTIONS THAT ARE ASSOCIATED WITH IMPACT STATEMENTS.

EXCELLENT. THANK YOU.

AND THEN I GUESS THE ONLY COMMENT I HAVE IS THAT AS WE ARE PRIORITIZING AND ASSESSING THESE, I THINK IT'S REALLY IMPORTANT TO I MEAN, OBVIOUSLY WE NEED HIGH IMPACTS FOR LOW COSTS IF WE CAN.

BUT AT THE SAME TIME, IT'S GOING TO BE REAL IMPORTANT THAT WE PRIORITIZE THESE IN A WAY THAT SHOWS [INAUDIBLE] SHOWS HOW MUCH THESE GOALS CAN REALLY HELP OUR ECONOMY AT THE SAME TIME THAT CAN SHOW EMPLOYMENT GAINS THAT CAN, YOU KNOW, ATTRACT, YOU KNOW, APPRENTICESHIPS OR TRADE SKILLS COMING TO FLAGSTAFF.

I THINK IT'S IT'S REALLY IMPORTANT WE START THERE AND SHOW OUR BE ABLE TO SHOW THE DATA, BE ABLE TO SHOW THAT THIS ISN'T A ZERO SUM GAME WHERE WE DEAL WITH THE ENVIRONMENT AND IT'S NEGATIVE ON THE ECONOMY.

NO, NO, NO. IT'S QUITE QUITE THE OPPOSITE.

AND JUST DEMONSTRATING THAT BEING ABLE TO SHOW DATA IN THESE FIRST FEW YEARS, ESPECIALLY IF YOU KNOW, BONDING OR OUT OF THE GENERAL FUND, HOWEVER, WE MOVE FORWARD.

I JUST THINK THAT'S A REAL IMPORTANT START BEFORE WE MOVE INTO THE LATER YEARS WHEN CARBON CAPTURE AND SEQUESTRATION BECOMES ANOTHER PART OF THE PLAN THAT I MEAN, TECHNOLOGY HASN'T CAUGHT UP YET FOR THAT.

BUT JUST WANTED TO THROW THAT COMMENT OUT THERE THAT REALLY, IF WE CAN CREATE EMPLOYMENT, CREATE GOOD JOBS, SHOW THIS DIFFERENTLY THAN THAT WOULD BE GREAT.

YOU GOT IT. AND THE OTHER QUESTION I HAVE IS REGARDING THE ADUS AND PARTICULARLY WITH THE EXCEL, THE BOND PROPOSITIONS WITH ADUS.

I GUESS THIS MIGHT NOT BE A QUESTION FOR YOU, NICOLE, BUT IS THIS BEEN BROACHED OR BROUGHT UP WITH THE HOUSING COMMISSION? THAT MIGHT BE THAT MIGHT BE A CLIFTON QUESTION OR SARAH DARR QUESTION.

SO I WILL SAY THAT WE ALL AND DAN THANK YOU.

I WILL SAY THAT IN WORKING TO DEVELOP THE FRAMEWORK FOR THIS INITIATIVE, WE WORKED WITH THE HOUSING TEAM AS WELL AS PLANNING TEAM AND INTO COUNCIL MEMBER MCCARTHY POINT THE PLAN WAS ACTUALLY A RECOMMENDATION COMING FROM [INAUDIBLE].

AND SO THIS HAS REALLY BEEN A COLLABORATIVE DISCUSSION OVER THE LAST TWO YEARS AND HOW WE CAN TRY TO ADVANCE THIS, BRINGING IN EFFICIENTLY, BRINGING IN HOUSING OPPORTUNITIES, BUT ALSO MERGING THAT WITH ENERGY EFFICIENCY AS WELL.

AND I THINK THAT WE ALSO HAVE SARAH.

THANK YOU. HI, MAYOR, COUNCIL SARAH, HOUSING DIRECTOR, I JUST WANTED TO MENTION THAT SUSTAINABILITY AND HOUSING ARE WORKING TOGETHER TO HOLD A JOINT MEETING BETWEEN THE COMMISSIONS AND THAT WILL ADDRESS TOPICS SUCH AS THIS.

BUT YES, WE DID WORK TOGETHER ON THE ADU CONCEPTS, BUT THE JOINT MEETING OF THE COMMISSIONS WILL BE ABLE TO ADDRESS A NUMBER OF DIFFERENT THINGS, INCLUDING THIS AS WELL.

THANK YOU. AWESOME, THANK YOU, AND I'M JUST I'M REALLY GLAD TO SEE HOW MUCH, ESPECIALLY THE LAST FEW YEARS, HOW MUCH OF THESE OVERLAPS HAVE BEEN SUCH RECOGNIZED AND THE COLLABORATIONS AND THE COMMUNICATIONS BETWEEN TRADITIONALLY A LITTLE MORE SILOED GOVERNMENT ENTITIES WITHIN THE CITY OF FLAGSTAFF.

AND I'M JUST REALLY GLAD AS A TEAM THAT WE'RE ALL RECOGNIZING THAT AND STAFF ALL THE WORK

[05:20:02]

SO I APPRECIATE ALL THE WORK ON THAT FRONT.

GREAT. MAYOR, ANYTHING ELSE? THAT'LL DO IT? I'LL GET OFF THE BOX HERE.

I DO SEE DAN WANTS TO JUMP IN, SO MAYBE HE HAS MORE TO ADD TO THE.

YEAH. SO, DAN, MAYBE TO WRAP US UP ON THIS ONE? YEAH, I'LL BE VERY BRIEF.

THANK YOU, MAYOR. DAN FOLK COMMUNITY DEVELOPMENT DIRECTOR I JUST WANTED TO SAY THERE'S A NUMBER OF ITEMS ON THIS LIST THAT NICOLE PRESENTED THAT REALLY DO OVERLAP WITH THINGS IN THE HOUSING PLAN.

ONE IS HAVING PRE-APPROVED PLANS SETS FOR HOUSING.

ANOTHER IS A REVIEW OF THE CODE REALLY FROM TOP TO BOTTOM.

WHAT ARE THINGS THAT CONTRIBUTE TO THE COST OF HOUSING IN OUR ZONING CODE AND OUR DEVELOPMENT REQUIREMENTS? SO WE, YOU KNOW, WE'RE OBVIOUSLY WORKING VERY CLOSELY WITH NICOLE AND SARAH AND EVERYBODY. SO. I THINK THERE'S GOOD COLLABORATION HAPPENING ON MANY LEVELS.

ALL RIGHT. OK, WELL, SHALL WE CONTINUE ON TO THE LAST PART OF THIS, WHICH IS HOUSING GREAT, GREAT SEGWAY? SO I GUESS I'LL JUMP IN.

NICOLE, WE ARE AT 2:45.

CORRECT? YEP.

WHICH WAS THE TIME WE WERE GOING TO TAKE TIME FOR CLOSING REMARKS AND PUBLIC PARTICIPATION. SO I'M WONDERING IF WE SHOULD MOVE HOUSING TO FIRST THING TOMORROW MORNING. I WILL DEFER THAT TO THE GROUP, YOU'RE GETTING A THUMBS UP FROM SARAH.

GREGG, ANY CONCERNS ON THAT? NO, WE STRUCTURED THIS AGENDA TO BE A LITTLE BIT NIMBLE, AND I DON'T WANT TO CUT SHORT THE HOUSING DISCUSSION AND SARAH, IF YOU AND YOUR TEAM ARE COMFORTABLE PRESENTING IN THE MORNING. I THINK THAT WORKS TO YOUR ADVANTAGE.

ALL RIGHT, FOLKS, WILL BE AWAKE IN THE MORNING AND ENERGIZED.

[INAUDIBLE], BUT I'LL BE AWAKE.

THANK YOU. FOR WHAT IT'S WORTH.

OK, THEN THAT DOES TAKE US TO PUBLIC COMMENT.

THEY ARE I'M CHECKING RIGHT NOW TO SEE IF WE HAVE ANYBODY, I DON'T BELIEVE SO, JUST A MOMENT. OK, WELL, WE'RE DOING THAT COUNCIL MEMBER MCCARTHY, YOU HAVE A COMMENT.

YEAH, I JUST A QUICK COMMENT.

WELL, WE'RE TRYING TO HOOK THE PUBLIC UP, AND THIS WILL KIND OF TIE TODAY'S DISCUSSION WITH TOMORROW MORNING'S DISCUSSION.

I BELIEVE THAT OF ALL THE THINGS WE CAN DO FOR TO REDUCE OUR CARBON EMISSIONS HOUSING AND THE WAY WE LAY THE CITY OUT IS PROBABLY THE MOST IMPORTANT THING THAT WE CAN DO.

I REALIZE THAT A LOT OF PEOPLE DON'T LIKE DENSITY, BUT IF WE HAVE A MORE DENSE CITY, IT FACILITATES PUBLIC TRANSPORTATION, BICYCLING, WALKABILITY.

AND YOU KNOW, THE METRO PLAN JUST DID A SURVEY.

AND IT WAS INTERESTING TO ME THAT MAJORITY OF IF I REMEMBER CORRECTLY, THE PEOPLE THAT LIVE WITHIN FLAGSTAFF ARE SAYING THAT SMALLER HOMES, COUPLED WITH BETTER ABILITY FOR WALKABILITY AND BICYCLING, WAS ACCEPTED AND THOUGHT TO BE VERY IMPORTANT BY THE PEOPLE OF FLAGSTAFF IN GENERAL.

SO I'M JUST TRYING TO TELL YOU THE TWO DAYS TOGETHER AND KIND OF PUT SOME OF THESE THINGS IN PERSPECTIVE.

THANK YOU FOR THE COMMENT, AND MAYBE WE'RE READY FOR PUBLIC NOW.

ALL RIGHT, WELL, STACEY POPPED IN AND WE ACTUALLY DON'T HAVE ANY PUBLIC COMMENTS, SO THAT WOULD WRAP US UP FOR THE DAY.

MAYOR DEASY OR GREG, ANY CLOSING COMMENTS BEFORE WE HEAD OUT FOR THE DAY AND PREP FOR TOMORROW? WELL, I'LL JUMP IN AND START, THANK YOU, COUNCIL, WE'LL CONTINUE THIS DIALOG IN THE MORNING AND OBVIOUSLY HOUSING WILL KICK THAT OFF, BUT WE WILL BE TALKING ABOUT CAPITAL IMPROVEMENTS IN A NUMBER OF OTHER VERY IMPORTANT TOPICS.

I WANT TO THANK YOU FOR YOUR ENGAGEMENT TODAY.

I KNOW IT'S QUICKLY BECOMING OBVIOUS, AS IT ALWAYS DOES IN THIS PROCESS, THAT THE DESIRED PROJECTS AND PROGRAMS GREATLY EXCEED WHAT OUR BUDGET ABILITIES AND EVEN BONDING ABILITIES ARE GOING TO BE ABLE TO ADDRESS, BUT IT'S NEVERTHELESS A VERY IMPORTANT DISCUSSION TO HAVE, AND SUBSEQUENT TO THIS, THERE WILL BE A LOT MORE ANALYSIS AND REFINEMENT AND PAIRING THINGS DOWN.

BUT WE'RE CERTAINLY LOOKING TO GET YOUR REACTIONS AND SOME LEVEL OF DIRECTION AS WE'RE

[05:25:02]

BUT I JUST WANT TO SHARE WITH YOU.

WE RECOGNIZE THAT THE PROJECTED COST OF ALL THIS, OF COURSE, GREATLY EXCEED WHAT WHAT WE'RE GOING TO HAVE THE AVAILABLE RESOURCES TO TO ACCOMMODATE.

SO THANK YOU. THANK YOU, CITY MANAGER, AND THANK YOU, NICOLE, AND THE WHOLE TEAM, I KNOW THESE THESE RETREATS ARE A LOT EASIER ON [INAUDIBLE] THAN THEY ARE ON THE STAFF AND THE TIME YOU ALL PUT INTO IT AND THOUGHT AND ALL THE MEETINGS SO FINE WORK ON ALL FRONTS TODAY AND EXPECTEDLY TOMORROW AS WELL.

I DO HAVE A GENERAL COMMENT THAT KIND OF GOES BACK TO THE BONDS THAT THE, WE HAVE A LOT OF PROJECTS, RIGHT? A LOT, A LOT OF PROJECTS, AND I AM CONCERNED WITH VOTER FATIGUE IF WE ARE PUTTING SIX SEVEN THINGS ON THE BALLOT THIS YEAR FOR BONDING.

AND IN LIGHT OF THE NEED FOR FLEXIBILITY, I'M JUST WANTED TO PUT A LITTLE SEED IN OTHERS EARS ON THIS SUBJECT, BUT TO CREATE AN INFRASTRUCTURE BOND LIKE PHYSICAL INFRASTRUCTURE THAT COULD HELP ENCAPSULATE MANY OF THESE MEASURES, AS I'D SAY, STATED BEFORE STORM WATER WASTEWATER THAT WOULD HAVE, FOR EXAMPLE, A REQUIREMENT THAT IT WOULD BE USED FOR MATCHING DOLLARS AND IN A WAY BE KIND OF LIKE A LOCALIZED INFRASTRUCTURE BOND THAT CAN THEN MATCH THE INFRASTRUCTURE BILL OF LOTS AND LOTS OF MONEY COMING OUT.

THAT ALSO WOULD ALIGN WITH OUR PLANS THAT WE HAVE IN PLACE THAT ARE ALREADY ESTABLISHED AND SET.

SO THAT WAY, THE PUBLIC FEELS OK WITH THE IDEA OF THIS DOES CONFORM TO OUR PLANS AS A CITY AT THE LOCAL LEVEL AND THAT IT IS REQUIRED THAT IT BE USED FOR MATCHING FUNDS WITH THIS FLOW THAT'S COMING IN.

SO I'M JUST THROWING OUT THERE.

I AM VERY CONCERNED ABOUT THE IDEA OF SAYING, YOU KNOW, WASTEWATER STORM WATER, PUBLIC SAFETY, CLIMATE ACTION, HOUSING, ALL OF THE LIST OF BONDING THAT WE HAVE TO DO.

THAT WE REALLY NEED TO BE CONSCIENTIOUS OF HOW WE GROUP THEM.

SO JUST THROWING IT OUT THERE AS AN IDEA OF HAVING A LARGER INFRASTRUCTURE BOND WITH CERTAIN GUARDRAILS IN PLACE TO BE CONSIDERED.

SO AGAIN, JUST THROWING THAT OUT THERE, I KNOW IT'S PEOPLE'S BRAINS MIGHT BE A LITTLE MUSHY AT THIS POINT, BUT WE CAN BRING UP A LITTLE BIT, MAYBE MORE INTERACTION TO THAT IDEA, POTENTIALLY TOMORROW OR IN AT A FUTURE DATE.

SO THANK YOU.

THANK YOU, EVERYONE, FOR ALL OF YOUR PARTICIPATION AND WORK TODAY.

ALL RIGHT, WELL, THANK YOU, EVERYONE, WE WILL BE BACK TOMORROW WITH AN 8:30 ON THE DOT START. GET SOME GOOD REST.

GET HYDRATED.

KEEP DOING THOSE SQUATS. I THINK COUNCIL MEMBER SHIMONI HAS ABOUT 40 MORE PUSHUPS TO GO TO HIT HIS 100, SO WE'LL BE GOOD TO GO.

GREAT. THANK YOU ALL.

MUCH APPRECIATED. THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.