ALL RIGHT. I AM GOING TO CALL THIS COMBINED SPECIAL MEETING WORK SESSION TO ORDER. [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).] [00:00:05] TODAY IS TUESDAY, FEBRUARY 14TH. SORRY FOR THE DELAYED START. CITY CLERK CAN WE HAVE A ROLL CALL? THANK YOU. I'M GOING TO LEAD US IN THE PLEDGE OF ALLEGIANCE. STAND AS YOU ARE ABLE. COUNCIL MEMBER SWEET WOULD YOU DO THE MISSION STATEMENT AND THEN COUNCIL MEMBER HOUSE, WHICH YOU DO THE LAND ACKNOWLEDGMENT. THANK YOU, MAYOR. THE MISSION OF THE CITY OF FLAGSTAFF IS TO PROTECT AND ENHANCE THE QUALITY OF LIFE FOR ALL. THE FLAGSTAFF CITY COUNCIL HUMBLY ACKNOWLEDGES THE ANCESTRAL HOMELANDS OF THIS AREA'S INDIGENOUS NATIONS AND ORIGINAL STEWARDS. THESE LANDS STILL INHABITED BY NATIVE DESCENDANTS, BORDER MOUNTAINS SACRED TO INDIGENOUS PEOPLES. WE HONOR THEM, THEIR LEGACIES, THEIR TRADITIONS, AND THEIR CONTINUED CONTRIBUTIONS. WE CELEBRATE THEIR PAST, PRESENT AND FUTURE GENERATIONS WHO WILL FOREVER KNOW THIS PLACE AS HOME. THANK YOU. ALL RIGHT. MOVING DOWN TO ITEM NUMBER FOUR, CONSIDERATION AND ADOPTION OF ORDINANCE NUMBER 2023. [4. Consideration and Adoption of Ordinance No. 2023-03: An ordinance of the City Council of the City of Flagstaff, amending the Flagstaff City Code, Title 12, Floodplains, Chapter 12-02, Stormwater Management Utility, by amending Section 12-02-002-0003, Schedule of Stormwater Management Utility Service Charges and Fees; providing for repeal of conflicting ordinances, severability, penalties, authority for clerical corrections, and establishing an effective date STAFF RECOMMENDED ACTION: At the February 14, 2023 Council Meeting: 1) Continue the Public Hearing, opened on November 15, 2022 2) Read Ordinance No. 2023-03 by title only for the first time 3) City Clerk reads Ordinance No. 2023-03 by title only (if approved above) At the February 21, 2023 Council Meeting: 4) Continue the Public Hearing 5) Close the Public Hearing 6) Read Ordinance No. 2023-03 by title only for the final time 7) City Clerk reads Ordinance No. 2023-03 by title only (if approved above) 8) Adopt Ordinance No. 2023-03] DASH ZERO THREE, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF AMENDING THE FLAGSTAFF CITY CODE TITLE 12 FLOOD PLAINS. CHAPTER 12-02, STORM WATER MANAGEMENT UTILITY BY AMENDING SECTION 12-02-002-003 SCHEDULE OF STORM WATER MANAGEMENT, UTILITY SERVICES, SERVICE CHARGES AND FEES PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES, SEVERABILITY PENALTIES, AUTHORITY FOR CLERICAL CORRECTIONS AND ESTABLISHING AN EFFECTIVE DATE. I AM GOING TO CONTINUE THE PUBLIC HEARING FROM OUR PREVIOUS MEETING AND I BELIEVE STAFF HAS A PRESENTATION FOR US. THANK YOU. YEAH, THANK YOU MAYOR, COUNCIL ED SCHENCK, STORMWATER MANAGER. I ALSO HAVE HERE IN THE ROOM AND ALSO ONLINE A FULL TEAM. SO WE HAVE RICK TADDER HERE FOR MANAGEMENT. I ALWAYS GET IT WRONG, MANAGEMENT SERVICES DIRECTOR. WE ALSO HAVE SHANNON JONES, OUR NEW WATER SERVICES DIRECTOR IS IN THE ROOM AS WELL, GARY MILLER AS WATER SERVICES ENGINEERING SECTION DIRECTOR, AS WELL AS LISA DIEM, OUR FINANCIAL ANALYST AND WATER SERVICES, AND SANJAY GARG FROM WATER RESOURCES ECONOMICS. THIS WILL BE A SHORTER PRESENTATION THAN WHAT WE PROVIDED JANUARY 31ST. WE'LL PROVIDE SOME UPDATES SINCE THAT JANUARY 31ST DISCUSSION. A QUICK OVERVIEW. AS I MENTIONED, WE'LL WE'LL GO OVER JANUARY 31ST, SOME UPDATES SINCE THEN, EXTERNAL RESOURCES VERSUS RATES FOR SOME OF THESE SCENARIOS. THE FINANCIAL PLANNING SCENARIO DETAILS FOR THREE NEW SCENARIOS, THE TIMELINE FOR ADOPTION AND THEN COUNCIL DECISION. SO JUST QUICK OVERVIEW. THESE WERE THE THREE SCENARIOS WE PRESENTED TWO WEEKS AGO. SO BETWEEN A MINIMAL SIP SCENARIO OR RECOMMENDED SIP WITH GRANTS AND RECOMMENDED SIP WITH RATES, YOU CAN SEE THOSE ADJUSTMENTS THROUGH THE FIVE AND ONE HALF YEAR FISCAL FISCAL YEAR, FIVE AND A HALF YEARS, BOTH IN TERMS OF A DOLLAR AMOUNT PER CREW AS WELL AS A PERCENTAGE INCREASE. SOME UPDATES SINCE THAT PRESENTATION IS SOME FUNDING OPTIONS FOR BOTH THE HIGHWAY ONE CULVERT PROJECT AS WELL AS FOR THE DETENTION BASE AND MAINTENANCE. SO THIS IS THE $1.8 MILLION A YEAR THAT WE HOPE TO ACCRUE FOR THOSE VERY EXPENSIVE MAINTENANCE OPTIONS. SO THOSE UPDATES, TO GET A LITTLE MORE SPECIFIC, WE ELIMINATE THE DEBT FUNDING FOR THE HIGHWAY 180 PROJECT, LOOKING FOR STATE FUNDING AS OPTIONS INSTEAD AND THEN REDUCE. BECAUSE OF THAT, WE WOULD REDUCE OUR ONGOING DEBT SERVICE, WHICH IS RATHER SUBSTANTIAL, AND WE'LL CONTINUE TO DELIVER THAT PROJECT. FOR THE DETENTION BASE AND MAINTENANCE, ELIMINATE THAT DETENTION BASE AND MAINTENANCE RATE EXPENSE, SEEK STATE RESOURCES TO FUND THAT AS AN OPERATIONAL EXPENSE [00:05:06] EXPENSE. AND THAT DOES REDUCE OUR ANNUAL OPERATING EXPENSE BY 1.8 MILLION. OBVIOUSLY, WITH BOTH OF THESE, THERE ARE RISKS OF RESOURCES THAT ARE NOT AVAILABLE AFTER MAJOR EVENTS OR MULTIPLE EVENTS. OKAY, SO WHAT ARE THOSE EXTERNAL RESOURCES? WE HAVE TWO STATE FUNDING OPPORTUNITIES, AND I WILL MENTION RIGHT AWAY WE NEED TO CONTINUE THAT LOBBYING, LOBBYING AT THE STATE LEVEL FOR THIS TO MOVE IT FORWARD. ONE IS HOUSE BILL 2543. THIS IS A TRANSPORTATION AND INFRASTRUCTURE BILL. THAT METRO PLAN HELPED US PUT IN $3 MILLION OF FUNDING FOR THE HIGHWAY 180 CULVERT. AND THE OTHER HOUSE BILL IS AN AMENDMENT TO HOUSE BILL TO 2022 86 AMENDMENT THAT WAS SUBMITTED ON JANUARY OF THIS YEAR FOR 8.9 MILLION PARTIALLY TO FUND THAT HIGHWAY 180 CULVERT AND THEN ALSO TO FUND DETENTION BASIN MAINTENANCE. SO WE SHOULD HEAR ON BOTH OF THESE LATER THIS YEAR. THEY'RE BOTH STILL PRETTY EARLY ON IN THE PROCESS AT THE STATE HOUSE. AND THEN OBVIOUSLY, WE WILL CONTINUE TO PUSH FOR BOTH FEDERAL AND STATE SUPPORT THROUGH BOTH GRANTS AND DIRECT ASSISTANCE. ONE OTHER CHANGE SINCE JANUARY IS THE USE OF THE GENERAL FUND FOR EMERGENCY USE, ESSENTIALLY USING THE GENERAL FUND AS A BACKSTOP UNTIL WE DO GET THAT STATE FUNDING OR UNLESS WE GET THAT STATE FUNDING. AND I BELIEVE SORRY, RICK, I'M GETTING INTO YOURS. YOU'RE TALKING POINTS HERE. I'M JUST GETTING TOO EXCITED HERE. SO LET ME BACK UP A LITTLE BIT. RICK, TAKE OVER HERE. YOU'RE ROLLING ALONG. THAT'S FINE. HELLO, MAYOR. VICE MAYOR AND CITY COUNCIL MEMBERS. RICK TADDER MANAGEMENT SERVICES DIRECTOR. YEAH. WE TALKED ABOUT THE GENERAL FUND AS AN EMERGENCY USE IF NEEDED FOR OUR STORMWATER FUND. AT THE BUDGET RETREAT A LITTLE WHILE BACK. OUR INTENTION IS TO RESERVE THESE FUNDS IN THE GENERAL FUND, NOT BUDGET THEM IN THIS FISCAL YEAR DURING OUR BUDGET PRACTICE AND SET THOSE ASIDE IN CASE WE DO NOT GET THE STATE FUNDING AS GREAT AS ED HIS MANSION OR OTHER FEDERAL FUNDING POSSIBLY TO DO OUR MAINTENANCE OF DETENTIONS AND THE HIGHWAY 180. THERE ARE SOME IMPACTS THAT WILL HAVE WITH THE GENERAL FUND BY DOING THIS TYPE OF MEASURE AND RESERVING FUNDS FOR USE AND BUDGETARY NEEDS. LIMITS OUR CAPACITY FOR THE NEXT COUPLE OF YEARS WHILE WE SEE HOW THE MAINTENANCE ISSUES COME UP WITH THE DETENTION BASINS. IT ALSO TIES UP RESOURCES RESOURCE ITEMS FOR ITEMS LIKE FLEET REPLACEMENTS, FACILITIES, MAINTENANCE, I.T. INFRASTRUCTURE AND MANY OTHER THINGS THAT WE MENTIONED AT THE FEBRUARY RETREAT. WE TALKED ABOUT ALL OF OUR RESOURCE NEEDS. A LOT OF THAT WAS WITHIN THE GENERAL FUND. SO THAT'S WHAT WE'RE THAT'S THE RISK OR THAT'S WHAT THE IMPACT IS BY SETTING THESE AS A BACKDROP, AS AN EMERGENCY USE IF OTHER FUNDING DOES NOT COME THROUGH. WE WILL CHANGE THE LEVEL OF SERVICE FROM AN INTERNAL OR CONTRACTUAL HYBRID TO A CONTRACT ONLY FOR A. BASE AND MAINTENANCE. THERE IS ANTICIPATION OF EQUIPMENT NEED FOR STORM WATER TO DO SOME OF THIS WORK. SO WE'RE GOING TO HAVE TO MANAGE HOW THAT EQUIPMENT PURCHASES, WHETHER IT IS WITH THE GENERAL FUND, EMERGENCY FUNDS TO MAINTAIN THOSE BASINS OR OTHER RESOURCES. WE ALSO UNDERSTAND THERE IS ADDITIONAL UNCERTAINTY OF OUR GENERAL FUND THAT WE HEAR DURING OUR LEGISLATIVE PROCESS THIS YEAR. ONE OF THE BIG THINGS WE'RE WATCHING AND WE SEE IS THERE'S THE MINIMUM WAGE BILL THAT IS A NEGATIVE IMPACT TO CITIES WITH A HIGHER MINIMUM WAGE AS VOTERS APPROVED. AND THIS ONE WOULD. IMPACT THE CITY OF FLAGSTAFF GREATLY. BRANDI SUTA, OUR FINANCE DIRECTOR, AND I HAVE BEEN TRYING TO CALCULATE AND MESH THE NUMBERS OF WHAT THAT IMPACT IS, AND WE THINK IT'S ABOVE THE $10 MILLION ISSUE AS WRITTEN TODAY. WITH THAT BILL OUR TOTAL. URBAN REVENUE SHARE. INCOME TAX SHARE IS ABOUT 20 MILLION THIS COMING YEAR, AND WE COULD SEE THAT WHOLE AMOUNT BEING TAKEN AWAY THROUGH THIS MINIMUM WAGE BILL. SO THIS IS A VERY IMPORTANT BILL TO WATCH. HOPEFULLY IT WOULDN'T GET SIGNED BY THE GOVERNOR IN THIS ASPECT. BUT THIS IS ONE OF THOSE CONCERNS THAT GENERAL FLYNN MAY NOT HAVE THE RESOURCES TO HELP THE STORM WATER IF THESE KIND OF THINGS OCCUR AT THE STATE LEVEL. WE DO HAVE THE ECONOMIC CLIMATE THAT WE TALKED ABOUT, THE FEBRUARY RETREAT. WE DO UNDERSTAND THAT THERE COULD BE A RECESSIONARY PERIOD. GENERAL FUND REVENUES HAVE BUILT THOSE IN. SO WE'RE FEELING PRETTY CONFIDENT ABOUT THE RESOURCE AVAILABLE IN THAT ASPECT. AND IF THERE'S OTHER UNFORESEEN EXPENDITURES THAT WE SEE IN THE GENERAL FUND, EMERGENCY ISSUES THAT WE HAVE IN THE COMING YEAR COULD HAVE AN IMPACT ON THOSE RESOURCES BEING AVAILABLE. THAT'S JUST MAKING YOU AWARE OF WHAT COULD OCCUR WITH A GENERAL FUND. [00:10:04] COULD YOU GO BACK ONE SLIDE? TYING UP RESOURCES, HOW WOULD THAT BE IMPACTED IF WE. WHAT WOULD BE THE LIKELIHOOD? WHAT'S THE TIME FRAME THAT WE MIGHT SEE THE STATE FUNDING COME TO US IF IT IS APPROVED IN THIS SESSION? I GUESS WE NEED TO SEE THE BILL A LITTLE BIT MORE AND SEE IT MOVE FORWARD. IT MAY BE AVAILABLE IN THE NEXT FISCAL YEAR. THEN AGAIN, IT'S WHAT IT'S GOING TO FUND. ALSO, IT TALKS ABOUT DETENTION BASE AND MAINTENANCE IN THAT BILL. THE 2286 TO HELP OPERATIONS AND MAINTENANCE OF DETENTION BASINS FOR STORMWATER. THE 2543 WOULD BE AVAILABLE NEXT YEAR. THAT ONE'S WRITTEN INTO AN INFRASTRUCTURE BILL. THE METRO PLAN WORKED, AND THAT'S THE 3 MILLION. IF THAT'S APPROVED, THAT'S AVAILABLE NEXT FISCAL YEAR. SO THERE'S. SO WE HAVE FOR SURE NEXT FISCAL YEAR AND POSSIBLY NEXT FISCAL YEAR. THE IF THE 2286 IS APPROVED IN THE DOLLAR AMOUNT, IT COULD COVER MULTIPLE YEARS. IT DEPENDS ON WHAT TYPES OF STORM EVENTS AND MAINTENANCE WE HAVE. WE UNDERSTAND THAT IF ALL DETENTION BASINS DO GET HIT WITH RUNOFF AND FILL, IT COULD BE $7 MILLION PLUS TO CLEAR OUT A BASIN. SO IT'S A BIG EXPENSE. SO IT DEPENDS ON EVENTS, HOW FAST THAT WOULD BE USED. DOES THAT HELP THE EQUATION? ALL RIGHT. AND I THINK NOW WE WILL TURN IT OVER TO SANJAY. GOOD AFTERNOON, EVERYONE. CAN EVERYONE HEAR ME WELL? YES. THANK YOU. SO WE'RE GOING TO TALK ABOUT THE FINANCIAL PLAN AND WHERE WE ARE WITH THAT. GO TO THE NEXT SLIDE, PLEASE. SO AS WE RECALL, DEVELOPING A FINANCIAL PLAN, THERE ARE A COUPLE OF THINGS THAT WE LOOK AT. ONE OF THE FIRST ONES IS ARE WE ABLE TO SUFFICIENTLY COVER OPERATING COSTS? SECOND ONE IS COVERAGE RATIO REQUIREMENTS. WE'VE TALKED ABOUT THIS IN THE PRIOR CITY COUNCIL MEETING, SO I'M GOING TO GO RELATIVELY QUICK. IF YOU DO HAVE QUESTIONS, PLEASE DO INTERRUPT ME. COVERAGE RATIO REQUIREMENTS. WHEN YOU ISSUE DEBT, THERE IS AN OBLIGATION ASSOCIATED WITH THAT. THE WAY THAT THE DEBT IS CALCULATED TECHNICALLY WITH YOURSELF IS WITH WATER, WASTEWATER AND STORM WATER REVENUES AND EXPENDITURE. IDEALLY, EACH FUND SHOULD BE SELF SUFFICIENT, BUT THE CALCULATION IS DONE AT AGGREGATE LEVEL. THERE IS ALSO THE POLICY ASSOCIATED WITH THE WATER POLICY OF 25% OF OPERATING REVENUE. AND THEN ALSO WE'VE BEEN TALKING ABOUT A CONTINGENCY FUND NOW PREVIOUSLY SET UP A $300,000 DUE TO ALL THE UNCERTAINTY, ESPECIALLY WITH THE RECENT FLOOD CONDITIONS. WHAT WE'RE RECOMMENDING IS A ONE TIME $2 MILLION FUNDING FOR THAT. IT'S NOT AN ANNUAL FUND. IT'S BASICALLY THINK OF IT, IF WE PUT $2 MILLION IN THE BANK, IT'S SET ASIDE AND WE CAN DRAW DOWN IN CASE OF SOMETHING GOING ON. BUT WE WOULDN'T BE FUNDING THAT ON AN ANNUAL BASIS. IT'S JUST A ONE TIME FUNDING. NEXT SLIDE, PLEASE. SO THE INCREASE FIRE AND FLOOD EVENTS OVER THE PAST YEAR HAVE MADE THINGS INFRASTRUCTURE INSUFFICIENT. SO THE INCREASED FIRE AND FLOOD EVENTS HAVE INCREASED DEMAND ON OPERATIONS AND STAFF EQUIPMENT. THESE INCREASED MITIGATION COSTS. AND AM I THINK THIS IS YOUR SLIDE, RIGHT ED? OH, I WAS LETTING YOU GO WITH IT, BUT I BELIEVE WE'VE DISCUSSED THIS ONE ALREADY IN PREVIOUS DISCUSSIONS. BUT THIS DOES GO OVER THE PURPOSE OF THIS RATE ADJUSTMENT, THE JUST THE INCREASE IN OPERATION AND MAINTENANCE COSTS, AS WELL AS INCREASED IN INFRASTRUCTURE COSTS, THE CAPITAL IMPROVEMENT COSTS DUE TO INFRASTRUCTURE THAT'S NOW UNDERSIZED DUE TO TWO RATHER LARGE FIRES IN SEVERAL NEIGHBORHOODS THAT ARE IMPACTED. AS WE KNOW, THE STORM WATER RATE IS BASED ON WHAT WE CALL AN EQUIVALENT RATE UNIT. AN ERU HERE AT CITY OF FLAGSTAFF ONE ERU EQUALS 4500 SQUARE FEET OF IMPERVIOUS SURFACE. ONE RECOMMENDATION THAT WE HAVE TODAY IS TO CHANGE THE CAP AT THE RESIDENTIAL LEVEL. SO THE RESIDENTIAL PROPERTIES HAVE A FIVE ERU CAP, COMMERCIAL PROPERTIES DO NOT HAVE ANY CAP. SO WE RECOMMEND CHANGING THE RESIDENTIAL CAP FROM 5 TO 10 ERUS. AND JUST TO BE CLEAR, THIS IS JUST CHANGING THE CAP. SO I KNOW THERE'S BEEN DISCUSSION IN THE PAST OF YOU CHANGING PEOPLE'S RATES BY MOVING THEM UP FROM 5 TO 10. AND THAT'S NOT THE CASE. WE'RE JUST CHANGING THE CAP. THE AVERAGE RESIDENTIAL HOUSE HAS THREE ERUS, SO THE AVERAGE RESIDENT WILL NOT BE IMPACTED BY THIS POLICY CHANGE IF IT IS ADOPTED BY COUNCIL. [00:15:02] WE ALSO DO UPDATE OUR ERU POPULATION ON REGULAR BASIS, EITHER THROUGH OUR AS BUILT AND PERMITS OR THROUGH NEW IMPERVIOUS SURFACE MAPPING. SO THROUGH ORTHO IMAGERY, LIDAR ET CETERA, AERIAL IMAGERY TO LOOK AT THE IMPERVIOUS SURFACE THAT WE HAVE. SO WE ARE COMPLETING A REVIEW FROM OUR 2021 SURVEY AND ANTICIPATE THAT BEING ROLLED OUT OVER THIS YEAR, NEXT YEAR, DO NOT EXPECT IT TO MATERIALLY CHANGE THE POPULATION, HOWEVER. WE'RE GOING TO GET INTO THIS CAPITAL PLAN SCENARIOS VERY SIMILAR TO WHAT YOU SAW BEFORE. SO WE'RE GOING TO PROVIDE THREE SCENARIOS. WE'RE KIND OF CALLING THESE THE B SERIES. SO SCENARIO ONE, B, SCENARIO TWO B, SCENARIO THREE B, THE ORIGINAL ONES COMING FROM JANUARY 31ST THAT WE JUST SHOWED. SAME SERIES OF PROJECTS FOR THE NEXT FIVE YEARS WITH THE ONLY CHANGE BEING THAT THAT SCHULZE CREEK HIGHWAY 180 WITH THESE B SERIES SCENARIOS WOULD BE FUNDED EITHER BY THE STATE'S EXTERNAL FUNDING OR THAT GENERAL FUND AS A BACKSTOP AND SHOULD ALSO MENTION THAT THIS IS JUST FOR THE NEXT FIVE YEARS. THERE IS QUITE A DEFERRED CIP LIST BEYOND THIS. LET ME KNOW IF YOU WANT ANY MORE DETAIL ON THIS. BUT I KNOW WE HAVE TALKED ABOUT IT IN THE PAST. WITH THIS, I'LL TURN IT BACK TO SANJAY FOR THE NEXT THREE SLIDES. THANK YOU. SO THE TWO MATERIAL THINGS THAT HAVE OCCURRED WITH THIS UPDATE AND AS ED MENTIONED, IS THAT WE CALL THEM THE SERIES B IS FIRST IS THE EXTERNAL FUNDING FOR BASIN MAINTENANCE, AND THE SECOND IS THE EXTERNAL FUNDING FOR HIGHWAY 180. BOTH OF THOSE ARE SIGNIFICANT SOURCES OF REVENUE AND BECAUSE OF THAT, WE CAN SIGNIFICANTLY REDUCE THE INCREASES THAT ARE NEEDED. SO IN THIS SCENARIO RIGHT HERE AND THIS IS THE MINIMUM CIP, WE'RE PROPOSING A 6% INCREASE IN RATES EACH YEAR. AS YOU CAN SEE IN THE TOP BLUE SECTION, THE FIRST ONE WOULD START THIS APRIL AND THEN THE FOLLOWING EVERY JANUARY. BY DOING THAT, YOU'LL SEE THAT THE TOTAL REVENUES IS 4.6 MILLION. THEN IT GOES TO SIX POINT, ALMOST 8 MILLION AND 6.8 MILLION, 1.8 OF THAT IS EXTERNAL FUNDING SOURCE. THEN THE NEXT SECTION, AS YOU SEE THE OPERATING RESERVES, YOU DO SEE THAT $2 MILLION CONTINGENCY THAT I MENTIONED. IT'S A ONE TIME. SO WE'RE PUTTING THAT MONEY, WE'RE SETTING IT ASIDE, PUTTING IN OUR SAVINGS ACCOUNT. CITY COUNCILOR MATTHEWS, WOULD YOU LIKE TO ASK YOUR QUESTION NOW OR YOU WANT ME TO FINISH THE SLIDE? OR YOU CAN FINISH THE SLIDE. OKAY. AND THEN WE HAVE THE CURRENT DEBT. WE HAVE THE PROPOSE DEBT THAT WE HAVE THE TOTAL COST. THEN WE HAVE THE NET REVENUES. SO WE ARE DRAWING DOWN IN 2024 BY 2.1 MILLION. 2 MILLION OF THAT IS INTO THAT SAVINGS ACCOUNT THAT I MENTIONED. THEN YOU HAVE THE CAPITAL EXPENDITURES. WE HAVE THAT BORROWED THAT WE'VE ALREADY ANTICIPATED TO DO BEFORE WE STARTED THIS WHOLE EVENT. THEN WE HAVE THE $4.3 MILLION EXTERNAL. I'M LOOKING AT COLUMN 2024. I'M JUST GOING DOWN THAT COLUMN. YOU HAVE THE GRANT FUNDING, YOU HAVE ALL THE DIFFERENT NET INCOME, AND THEN YOU HAVE THE ENDING BALANCES. AND THEN THE BOTTOM ARE DIFFERENT METRICS. THESE ARE NEW. BUT WE'RE JUST SHOWING A DIFFERENT SERIES OF METRICS. ONE IS THE 25% POLICY. IF YOU NOTICE, IN 2023, IT'S ABOVE THE 25% BECAUSE THERE'S BOND PROCEEDS IN THAT. SO SOMETIMES WE HAVE BOND PROCEEDS. IT LOOKS A LITTLE BIT HIGHER. AND THEN AS YOU DRAW ON, THE PROCEEDS WILL GO DOWN. BUT AS YOU CAN SEE, WE'RE AROUND 50% OR 60% OF THAT DEBT SERVICE IS 25% OF OPERATING COSTS. WE'RE ABOVE THAT BECAUSE THERE IS A LOT OF DEBT IN THIS SIDE OF THE HOUSE WITH STORM WATER. AND THEN THE COVERAGE RATIO, AS YOU CAN SEE, IS NOT THAT GREAT IN THE OUTYEARS. SO BASICALLY THE STORM WATER FUND WILL BE LEANING ON WATER AND WASTEWATER FOR COVERAGE RATIO REQUIREMENTS. YES. MAYOR. YES, GO AHEAD, COUNCIL MEMBER MATTHEWS. THANK YOU SO MUCH. SO JUST TO CLARIFY, I DON'T THINK I SAW IT IN ANY OF THE ATTACHMENTS WHEN WE WHEN WE HAD THE AGENDA SET OUT. BUT I, I HEARD YOU OR ED SAY THAT THE COVERAGE RATIO AT 1.2 OR 1.25 WAS REQUIREMENT FOR ANY PROPOSED DEBT. BUT I DO SEE WE HAVE A PRETTY DECENT BALANCE ENDING BALANCE, EVEN THOUGH THE FIRST COUPLE OF YEARS IS NET INCOME IS A NEGATIVE. BUT WE STILL HAVE QUITE A BIT OF FUNDS IN THERE. SO IS THE COVERAGE RATIO WHEN YOU COMBINE WATER SERVICES AND STUFF, DOES IT MEET THE 1.2 OR 1.25 REQUIREMENT FOR ISSUING DEBT? SO RICK'S GOING TO ANSWER THAT QUESTION. [00:20:02] COUNCIL MEMBER MATTHEWS YES, I FEEL CONFIDENT WITH THESE DEBT LEVELS THAT WE WILL MEET THE 1.2 FOR ALL THE WATER FUNDS, BECAUSE THIS IS THE 36 MILLION THAT WE ALREADY HAD PLANNED TO ISSUE FOR STORM WATER DEBT. WE DON'T HAVE ANY OTHER DEBT IN THIS SCENARIO OR THE SECOND SCENARIO. AND I THINK WE CAN MAINTAIN IT IF WE STAY AT THAT LEVEL. OKAY. THANK YOU. WE SHOULD BE FINE. SANJAY, YOU WANT ME TO GO TO THE NEXT SLIDE? YEAH, LET'S GO TO THE NEXT SLIDE. SO THIS IS THE SCENARIO NOW WITH THE CIP THAT WE PROPOSED. BUT WITH GRANT FUNDING NOW. SO IN THIS SCENARIO, WE JUST NEED A 10%. WE NEED A 10% INCREASE EACH YEAR. SO SIMILAR EXTERNAL FUNDING FOR THE BASIN EXTERNAL, SIMILAR EXTERNAL FUNDING FOR HIGHWAY 180, BUT JUST AN ADDITIONAL INCREASE IN REVENUE BECAUSE OF THE CIP NEEDS. SO THE FIRST SECTION REVENUES ARE A LITTLE BIT HIGHER FOR STORM WATER BECAUSE OF THE INCREASE. THE SECOND SECTION IS PRETTY MUCH THE SAME. THEN THE THIRD SECTION, THAT'S CAPITAL EXPENDITURE, YOU DO SEE HIGHER CAPITAL EXPENDITURE AND MORE GRANTS COMING IN TO PLAY BECAUSE OF THOSE DIFFERENT FACTORS. WE HAVE A RESERVE POLICY AND WE ARE SLOWLY DIPPING INTO OUR RESERVES FROM 5.3 AND ENDING BALANCE IN 2023 TO $2 MILLION OR $2.1 MILLION IN 2028. AH, WE'RE STILL ABOVE EXCEEDING THE POLICY ASSOCIATED WITH THE 25% OF OPERATING REVENUE TO DEBT, AND THE COVERAGE RATIO STILL IS NOT THAT GREAT. BUT AS MENTIONED, WE SHOULD HAVE SUFFICIENT FUNDS OR RESOURCES TO LEAN ON TO WATER AND STORMWATER. THE NEXT SCENARIO IS NOW WITH LESS GRANT FUNDING, SO A LITTLE BIT MORE PESSIMISTIC WITH THE GRANT FUNDING. SO NOW IT'S 12% EACH YEAR. BASED ON THAT INFORMATION, WE CAN GO DOWN TO THE BOTTOM. THERE IS ONE THIS ONE SCENARIO IS SLIGHTLY DIFFERENT IS THAT IN 2027 THERE IS A $9 MILLION DEBT ISSUANCE, THAT $9 MILLION. THESE ARE ALL PLANNING NUMBERS, ESPECIALLY IN 2027. AND SO IN 2027 OR 2026, YOU WOULD EVALUATE WHETHER YOU REALLY NEED TO DO $9 MILLION TO MAYBE ME BE ABLE TO DO MUCH LESS, OR WE MAY NEED TO DO MORE JUST DEPENDING ON INFLATIONARY AND COST INCREASES ASSOCIATED WITH CAPITAL. BUT IN THIS SCENARIO, WE'RE SAYING $9 MILLION. BASED ON THAT, YOU HAVE SOME PROCEEDS AVAILABLE. SO YOU'RE USING THAT PROCEEDS IN THE FOLLOWING YEAR. THE OPERATING RESERVES ARE ARE ARE AROUND AS YOU CAN. THREE 5.4 MILLION TO 3.3 MILLION IN 2027 IS HIGHER BECAUSE OF THE PROCEEDS FROM THE $9 MILLION ISSUANCE AND THEN DROP BACK DOWN TO $4 MILLION WITH THE POLICY ASSOCIATED WITH DEBT TO PERCENT OF OPERATING RESERVES AT 25% OR AGAIN ABOVE THAT. BUT THERE ARE MORE ADDITIONAL REVENUES AND THEN THE COVERAGE RATIO IS SLIGHTLY BETTER, BUT STILL WILL BE DEPENDENT ON WATER AND STORM WATER, WATER AND WASTEWATER. ALL RIGHT. SO THESE ARE VERY SIMILAR TO THAT TABLE YOU SAW AT THE BEGINNING, THAT SHOW THAT YOU SHOWED, THE JANUARY 31ST SERIES OF SCENARIOS. THESE WOULD BE THE SCENARIOS, WHAT WE'RE CALLING THE B SERIES, IF YOU WILL, WITH BOTH THE ERROR RATE AND THEN ALSO THE PERCENT CHANGE FOR EACH YEAR. SO YOU CAN SEE THE RATE CHANGE BOTH IN TERMS OF REAL NUMBERS AS WELL AS IN TERMS OF PERCENTAGE. RATE IMPACT. SO WE SHOWED THAT LAST TIME FOR THE JANUARY 31ST SCENARIOS. THIS IS FOR OUR B B SERIES SCENARIOS. SO THIS IS THE AVERAGE MONTHLY INCREASE. THE TOP ONE IS FOR RESIDENTIAL PROPERTIES, YOUR AVERAGE RESIDENTIAL PROPERTIES THREE. AIR USE. SO WE'RE SHOWING THIS PER MONTH. SO ON YOUR UTILITY BILL, UNDER SCENARIO ONE, YOU'D HAVE A 66 CENT INCREASE PER MONTH AND SCENARIO ALL THE WAY UP TO SCENARIO THREE, WHICH WOULD BE A DOLLAR AND $0.35. AND THEN YOU CAN SEE OUT AT THE END OF OUR RATE STUDY BEFORE THE NEXT RATE ADJUSTMENT. IF THERE IS ONE WHERE. IS MAXING OUT ABOUT $4.71, $8.67 OR $10.92 FOR AN AVERAGE FAMILY. HERE IN TOWN, MOVING TO THE NEXT TABLE, THIS IS THE AVERAGE MONTHLY INCREASE FOR A RESTAURANT. AN AVERAGE RESTAURANT HAS ABOUT 14 AIR USE. YOU CAN SEE THAT'S ABOUT $3, $5 OR $6 FOR YEAR ONE, AND THAT INCREASES PER MONTH AND THAT INCREASES OUT TO ABOUT $22, 44, $40 OR $51 IN YEAR SIX. AND THEN FOR THOSE BIG BOXES. [00:25:01] SO THE FACTORIES AND LARGE RETAILERS. 220 ARE RATHER LARGE PARCELS. AND YEAR ONE WE'RE TALKING ABOUT A LITTLE LESS THAN $50 PER MONTH FOR SCENARIO ONE, $81 FOR SCENARIO TWO, ABOUT $100 PER MONTH FOR SCENARIO THREE. AND THEN YOU CAN SEE FOR YEAR SIX THAT IMPACT AT 345, SIX, 36 OR 800. SO THESE ARE ALL. CONSIDERABLY LOWER THAN THE OTHER RATES THAT WE'VE SHOWN. THROUGH TIME, THROUGH THE FALL AND THROUGH THE WINTER. SO THAT'S WHERE WE'RE. SIT WITH THAT RATE IMPACT FOR COMMUNITY. SOME OTHER FACTORS CONSIDER. OBVIOUSLY, GRANTS ARE NOT GUARANTEED, AS IS ALL EXTERNAL SOURCES, SO THAT'S SOMETHING WE NEED TO CONSIDER MOVING FORWARD. OUTSIDE OF AGENCY ASSISTANCE. SO COCONINO COUNTY FLOOD CONTROL DISTRICT, AS WE KNOW, IS PRETTY OVERTAXED AS THEY HAVE OVER $100 MILLION OF OF EFFORT AND NEED OVER IN THE DOWNEY PARK TIMBERLINE AREA. FEDERAL AND STATE PROGRAMS WE'VE TALKED ABOUT ALREADY. GENERAL FUND CONTRIBUTIONS. THANK YOU, RICK. I'LL ALSO EXPLAIN QUITE A BIT OF THE INTRICACIES THERE. CONTINUED FIRE THREATS THROUGH BOTH CAMPING AND FIRE RESTRICTIONS ON THE FOREST SHOULD BE HELPING WITH THAT. BUT WE SHALL SEE WHETHER IT'S NICE AND SNOWY OUT RIGHT NOW. WE'LL SEE HOW THAT CONTINUES. AND THEN THAT LAST RATE INCREASE THAT WE HAVE IS IN 2018, IMPLEMENTED IN 2019, MOSTLY TO FINANCE THE REO, THE FLAG PROJECT. SINCE THEN, THE CPI, THE CONSUMER PRICE INDEX, HAS INCREASED OVER 17%. SO WE HAVE LOST ABOUT 17% OF OUR BUYING POWER AT THE CPI LEVEL. IF YOU'RE GOING WITH CONSTRUCTION INCREASES, IT'S CONSIDERABLY MORE THAN THAT. SO OUR STAFF RECOMMENDATION IS TO ADOPT ONE OF THE OPTIONS PRESENTED. WE HAVE THREE OPTIONS HERE, NEW OPTIONS, AND WE ALSO HAVE THREE OPTIONS FROM JANUARY 31ST. SO LET'S SAY WE HAVE SIX OPTIONS, IF YOU WILL. WE HAVE THIS PUBLIC HEARING AND FIRST READ TODAY. IF WE WERE TO CHOOSE AN OPTION, OUR SECOND READ AND AN ORDINANCE ADOPTION WOULD BE ON FEBRUARY 21ST, WITH THE RATES EFFECTIVE APRIL 1ST, OBVIOUSLY CONTINUED WORK, BOTH WITH GRANTS AND LOBBYING, WILL BE ONGOING, HOPEFULLY PRODUCTIVE, AND THEN FUTURE ADJUSTMENTS TO THE RATES FOR THIS ONE. WE'RE SEEING FUTURE ADJUSTMENTS. IF WE WERE TO CHOOSE ONE OF THESE B SERIES, IF YOU WILL, WE MAY HAVE TO INCREASE RATES IF WE DO NOT GET THE EXTERNAL FUNDING OR IF THE GENERAL FUND COMES UP SHORT. IF WE WERE TO ASSUME ONE OF THE SCENARIOS FROM JANUARY, IT WOULD BE THE OPPOSITE. SO WE'D BE ABLE TO REDUCE RATES THIS JUNE OR JULY IF WE HAD SUCCESS WITH ONE OF THOSE HOUSE BILLS AND REDUCING IT TO ONE OF THESE SCENARIO B'S THAT WE PRESENTED TODAY. SO WE HAVE SOME GUIDANCE ON WHAT THAT REDUCTION WOULD LOOK LIKE. REDUCING A RATE TAKES 30 DAYS. ADJUSTING A RATE UPWARDS TAKES WELL. THIS YEAR, TOOK ALMOST A YEAR. SO IT'S MUCH EASIER TO REDUCE THE RATE DOWN THAN IT IS TO MOVE IT UP. AND WITH THAT, I HOPED WE DID A LITTLE FASTER THAN WE DID IN JANUARY. HAPPY TO TAKE QUESTIONS. I KNOW IT'S A VERY COMPLICATED ISSUE AND VERY APPRECIATIVE OF THE REST OF THE STAFF TEAM HERE. THANK YOU SO MUCH ED. WE HAVE TWO QUESTIONS, THREE QUESTIONS FROM COUNCIL MEMBERS, AND THEN I'M GOING TO TAKE PUBLIC COMMENT. SO I'LL TAKE QUESTIONS FROM COUNCIL MEMBERS FIRST. THE FIRST IS VICE MAYOR ASLAN. THANK YOU, MADAM MAYOR. ED, HOW ARE YOU DOING? RICK, AND MAYBE THIS IS A QUESTION FOR BOTH OF YOU. ACTUALLY, I'D LIKE TO HEAR FROM BOTH OF YOU. I'VE BEEN AMENABLE TO THE IDEA OF A SUNSET CLAUSE PREVIOUSLY. IT SEEMS TO ME ONE OF THOSE WAYS THAT WE COULD SORT OF GET HALFWAY AND COMPROMISE WITH OUR BUSINESS COMMUNITY THAT IS VERY NERVOUS ABOUT THESE RATE HIKES. YOU HAVE SPOKEN PUBLICLY AT A BUDGET RETREAT THAT YOU'RE VERY NERVOUS ABOUT THAT IDEA. AND YOU YOU SAID Y A LITTLE BIT. I'M NOT SURE THE SAME NUMBER OF PEOPLE WERE WATCHING THAT PRESENTATION OR UNDERSTAND YOUR REASONING THERE. CAN YOU CAN YOU SPEAK TO THAT A LITTLE BIT AND BE VERY CLEAR AND CONCISE ABOUT WHY YOU FIND THAT SO PROBLEMATIC? IT SEEMS TO ME THAT IT COULD WORK, BUT ONLY IF A FUTURE COUNCIL UNDERSTANDS THE IMPORTANCE OF MAINTAINING THE FOOT ON THE GAS, SO TO SPEAK. SO THE THE RISK WE'RE TALKING A LOT ABOUT RISK HERE TODAY. THE RISK IS THAT ANOTHER COUNCIL DOWN THE ROAD WON'T SUPPORT CONTINUING THIS EFFORT. [00:30:05] BUT IF IT'S SOMETHING THAT WE CAN CONTINUE TO LOOK AT AND CALIBRATE AS WE GO, I UNDERSTAND WHY SOME VOICES OUT THERE IN THE COMMUNITY THINK THAT'S A SMART WAY TO HELP CALIBRATE THINGS ALONG THE WAY. SO THANK YOU FOR THE QUESTION. THE REASON I DON'T SEE IT FAVORABLE TO DO A SUNSET ON RATES FOR A FUND LIKE STORM WATER IS ONE ISSUE IS YOU HAVE DEBT SERVICE REQUIREMENTS. WE'RE GOING TO BE ISSUING DEBT FOR THE RIO DE FLAG PROJECT. WE'VE GOT 20, 20 MILLION OUTSTANDING. WE'RE GOING TO HAVE ANOTHER 16 MILLION OUTSTANDING WHEN WE MOVE THESE PROJECTS FORWARD. AND WHEN YOU YOU DO CHANGES LIKE THAT AND YOU PUT IN YOUR PLAN THAT YOU HAVE A RATE DEDUCTION OR IT FALLS OFF IN YEAR SIX OR WHATEVER, YOU'RE NOT GOING TO SHOW THAT YOUR REVENUES ARE GOING TO KEEP UP WITH THE COVERAGE YOU NEED TO PAY BACK YOUR DEBT IS ONE OF THE MAJOR ISSUES I WOULD HAVE. YOU KNOW, PEOPLE LOOKING AT OUR FINANCIAL PLANS, WILL SEE THAT. THEY'LL PULL THAT OUT AND THEY'LL SAY, WELL, WHY ARE YOU GOING TO HAVE A $4 MILLION DROP IN REVENUES IN YEAR SIX? HOW DO YOU EXPECT TO CONTINUE TO MAINTAIN AND PAY OUR DEBT? SO I THINK THAT WOULD HAVE AN IMPACT ON OUR BOND RATINGS IF WE GO IN THAT DIRECTION. THE OTHER THING IS, YOU KNOW, WHAT WE'RE LOOKING AT TODAY IS REALLY A BASE OPERATIONAL NEED. IF WE GO TO A SUNSET AND REVERT TO RATES. WE'LL BE CUT AND STAFF, WE'LL BE REDUCING OPERATIONS IN A STORMWATER FUND IN YEAR SIX BECAUSE THERE IS AN INCREASE NEED OF SERVICE IN THIS COMMUNITY FOR OUR STORM WATER FUND. AND ED I DON'T KNOW IF YOU'RE GOING TO ADD TO THAT. I THINK RICK ANSWERED IT PRETTY WELL, BUT I'LL ANSWER IT PROBABLY A LITTLE BIT MORE CRUDELY SINCE I'M NOT IN THE FINANCIAL WORLD. BUT MY ISSUE WITH SUNSET CLAUSES IS THEY TEND TO BE FAIRLY CLUNKY. IT'S AN ON OR OFF SWITCH GENERALLY. AND THIS STORMWATER RATE. THE MODEL, THE INPUTS TO THIS MODEL WAS. I'LL LET SANJAY TALK TO IT, BUT I BELIEVE IT WAS OVER A HUNDRED LINES. SO WE HAVE OVER 100 LINES OF INPUTS OF FINANCIAL NEEDS AT THE OPERATIONS, MAINTENANCE, CAPITAL SIDE DEBT, ETC.. SO WHEN YOU HAVE AN ON OFF SWITCH, WHAT ARE YOU TURNING ON OR WHAT ARE YOU TURNING OFF, YOU'RE GOING TO MOST LIKELY HAVE AN UNINTENDED CONSEQUENCE. SO LIKE RICK MENTIONED, YOU MIGHT BE CUTTING STAFF, FOR EXAMPLE, IF YOU DON'T FINE TUNE IT CORRECTLY. SO A RATE ADJUSTMENT IS REALLY THE BEST WAY TO DO IT BECAUSE THAT ALLOWS YOU TO LOOK AT THE TOTALITY OF THAT UTILITY AND DETERMINE WHAT NEEDS TO BE ADJUSTED EITHER DOWN OR UP AND MOVE IT IN A MORE NUANCED WAY THAT DOES NOT HAVE UNINTENDED CONSEQUENCES. FOR EXAMPLE, IF WE WERE TO HAVE A SUNSET CLAUSE AND WE HAD ANOTHER FIRE, THERE'S NOTHING IN THE SUNSET CLAUSE THAT WOULD SAY ANYTHING ABOUT THAT NEW FIRE IN THE NEW THE NEW NEEDS. WHEREAS THE RATE ADJUSTMENT OBVIOUSLY WOULD LOOK AT THAT SAME THING OR OBVIOUSLY NOT SAME THING. OPPOSITE SIDE. IF WE HAVE NO FLOODS IN THE NEXT FIVE YEARS, WE CAN REALLY NUANCE WHAT GETS REDUCED OR WHAT GETS REMOVED. WHEREAS THE SUNSET CLAUSE WOULD JUST KIND OF HAMMER AT ONE SECTION OF IT. IT MAY ACTUALLY LEAVE MONEY ON THE TABLE THAT SHOULDN'T BE THERE. SO JUST TO GIVE YOU THE OTHER SIDE OF THE COIN, SO A SUNSET CLAUSE IS RATHER CLUNKY. I WOULD DEFINITELY RECOMMEND A RATE ADJUSTMENT OR A RATE STUDY INSTEAD, BECAUSE THAT WOULD BE MUCH MORE NUANCED. THANK YOU VERY MUCH, ED, AND THANK YOU, RICK. I THINK YOU'VE ADDRESSED MY QUESTION AND I THINK YOU'VE EDUCATED ME A LITTLE BIT ON THE GREATER FINESSE WE COULD BRING TO THE SITUATION WITH THE RATE OF ADJUSTMENT. AND, YOU KNOW, THIS IS KEEPING IN MIND THAT OUR JUST STATED AS PLAINLY AS POSSIBLE FOR EVERYBODY. WE REALLY DO NEED TO BE NIMBLE AND BE ABLE TO THINK ON OUR FEET AND CALIBRATE THIS AS WE GO DOWN THE ROAD. AND SO BEING ABLE TO GO UP OR DOWN IN INCREMENTAL WAYS WITH THE SOFT LANDING DOES SEEM TO ME TO BE THE RIGHT APPROACH. AND IT'S PROBABLY WHAT I WAS THINKING OF IN WANTING USING THE TERM SUNSET CLAUSE. AND THAT MAY BE THE CASE WITH SOME OF THE OTHER VOICES OUT IN THE COMMUNITY AS WELL. THANK YOU, MAYOR. THANK YOU. AND I BELIEVE CITY MANAGER HAS SOMETHING TO ADD. THANK YOU, MAYOR. AND THANK YOU, VICE MAYOR, FOR THE QUESTION. WE'LL JUST ADD ONE QUICK COMMENT. AND GOING BACK TO OUR BUDGET RETREAT, WHEN WE TALKED ABOUT ENTERPRISE FUNDS AND TYPICALLY IN THE UTILITY ARENA, WE TRY TO OPERATE AS ENTERPRISES AND THIS IS NO EXCEPTION HERE. THE IDEA OF OF A SUNSETTED RATE, I THINK ALSO POSES SOME SOME VERY REAL CHALLENGES WITH TRYING TO MAINTAIN THAT ENTERPRISE STATUS. [00:35:05] I KNOW THAT IN YEAR ONE AND PERHAPS OTHER YEARS WILL BE RELYING UPON OUR GENERAL FUND TO HELP WITH SOME CAPITAL INFUSION HERE FOR SOME NEEDED PROJECTS. BUT REALLY THE IDEAL IS TO ULTIMATELY HAVE A SELF SUSTAINING ENTERPRISE HERE AND THE RATES ARE GOING TO ENABLE US TO DO THAT. SO I JUST WANTED TO ADD THAT COMMENT. THANK YOU. THANK YOU. COUNCILMEMBER MATTHEWS. THANK YOU MAYOR. A COUPLE OF QUESTIONS I THINK I ASKED I MAY HAVE ASKED THIS AT THE BUDGET RETREAT, BUT I DO WANT TO JUST ASK IT AGAIN FOR CLARIFICATION. WE PROPERTY OWNERS PAY PROPERTY TAXES. WE PAY THE COUNTY STORMWATER RATES. WHEN WE DEVELOPED A STORMWATER UTILITY HERE IN IN THE CITY OF FLAGSTAFF, DID WE LOSE SOME OF THAT ATTENTION FROM THE COUNTY TO THE FUNDS THAT THEY'RE GETTING? THEY'RE ABLE TO THEN JUST LOOK OUTSIDE OF THE CITY LIMITS AND AND LEAVE US TO YOU KNOW, FIX THE THINGS THAT ARE WITHIN OUR CITY LIMITS AND THAT'S PROBABLY A QUESTION FOR, I DON'T KNOW, ED OR RICK. THEN I HAVE ANOTHER QUESTION. IT'S A GREAT QUESTION. I'LL TRY MY BEST TO ANSWER IT. I DON'T KNOW IF I CAN FULLY ANSWER IT. SO STORM WATER BECAME A UTILITY IN 2003. AT THE TIME, WE WERE COVERED BY THE COUNTY FLOOD CONTROL DISTRICT TO A LIMITED AMOUNT. THE COUNTY FLOOD CONTROL DISTRICT WAS ESSENTIALLY JUST A UNIT OF PUBLIC WORKS. THEY DID NOT HAVE A STAFF AND THEY CURRENTLY HAVE A STAFF OF TWO JUST AS AN FYI. SO THEY'RE RELATIVELY SMALL AND HAVE BEEN IN RATHER NIMBLE. WE I WANT TO SAY WE WANT TO SAY WE LOST THAT CAPABILITY, BUT SOME OF THAT WENT AWAY WHEN WE TOOK ON OUR OWN CAPITAL IMPROVEMENTS IN 2005. AGAIN, FLOOD CONTROL DISTRICT IS VERY SMALL AT THE TIME. SO YOU'RE TALKING PENNIES TO PENNIES. IN 2018, THE FLOOD CONTROL DISTRICT STARTED TAXING CITY OF FLAGSTAFF. RESIDENTS WITHDREW THAT PROPERTY TAX. SO THERE IS A PROPERTY TAX ASSESSMENT FOR FLOOD CONTROL DISTRICTS FUNDS AND WE DO ACTUALLY GET QUITE A BIT OF BENEFIT FROM THAT. SO IN 2019, WE GOT OVER $1,000,000 OF SANDBAGS. JERSEY BARRIER ENGINEERING ASSESSMENT AFTER THE MUSEUM FIRE THAT WAS PAID FOR OUT OF THE FLOOD CONTROL DISTRICT AGAIN IN 2020 FOR THE REFRESH THE SANDBAGS, THE REFRESH THE ENGINEERING ASSESSMENTS, THE MODELING THAT JD FULLER PROVIDED, THAT WAS ALL FUNDED BY THE COUNTY FLOOD CONTROL DISTRICT. AGAIN, WE WE SAW QUITE A BIT OF BENEFIT FROM THAT IN 2021. AGAIN, WE ALSO SAW QUITE A BIT OF BENEFIT FROM THE FLOOD CONTROL DISTRICT. TO SAY THAT THEY LOOK AT OTHER COMMUNITIES OR OTHER PARTS OF THE COUNTY BECAUSE WE HAVE A STORMWATER PROGRAM. I DON'T THINK THAT WOULD BE FAIR TO SAY, JUST DUE TO THE AMOUNT OF MONEY THAT THEY HAVE BROUGHT BACK INTO THE COMMUNITY AFTER THE MUSEUM FIRE AND INTO THE PIPELINE FIRE. SO THERE'S A LOT OF NEED IN THE COUNTY. WE ARE ONE OF THE LARGEST COUNTIES IN THE UNITED STATES BY AREA. I'M GLAD I DO NOT HAVE THE FLOOD CONTROL DISTRICT ADMINISTRATOR'S JOB. THAT'S PROBABLY EVEN MORE STRESSFUL THAN MINE. BUT I DON'T KNOW IF THAT ANSWERS THE QUESTION, BUT WE DO SEE QUITE A BIT OF BENEFIT FROM THEM. OKAY. AND THEN MY OTHER QUESTION IS, IF YOU WANT TO GO BACK TO SLIDE, I BELIEVE 11, WHERE IT HAS WHAT PROJECTS CAN BE DONE. RIGHT. GO RIGHT THERE. SO IN THE FIRST THREE OR FIVE YEARS, HOWEVER YOU WANT TO CAPTURE IT. I'M LOOKING AT THE COLOR CODING CHART. AND WITH ALL THREE SCENARIOS. EACH ONE OF THESE TOP PROJECTS GET DONE UNTIL WE GET DOWN TO SPRUCE WASH AND DOROTHEA INLET. HOW MANY OF THOSE FROM SPRUCE WASH ABOVE IS GOING TO GET DONE IN THE NEXT FIVE YEARS? OUR INTENTION IS EVERYTHING ON THIS LIST WOULD BE COMPLETED IN THE NEXT FIVE YEARS, DEPENDING ON WHICH SCENARIO IS CHOSEN. OKAY. EVERYTHING. EXCEPT FOR OH, EXCEPT FOR RIO DE FLAG. IS THAT CORRECT? OH, I'M SAYING YEAH, YEAH. SO WE HAVE IF YOU CAN'T HEAR THROUGH THE MICROPHONE, THEY'RE SAYING, WELL, UNDER SCENARIO ONE, WE'RE NOT GOING TO COMPLETE EVERYTHING. WHAT I'M TRYING TO SAY IS BASED ON WHICH SCENARIO YOU CHOOSE, THE PROJECTS THAT ARE UNDERNEATH THAT SCENARIO WILL BE COMPLETED IN THE NEXT FIVE YEARS. I WOULD PUT THE CAVEAT THAT THE RIO DE FLAG FLOOD CONTROL PROJECT THAT MAY TAKE LONGER, I'M NOT REALLY SURE. I'M NOT SURE THE TIMELINE AT THE MOMENT, BUT I KNOW WE ARE MOVING VERY QUICKLY WITH IT NOW. AND ONE LAST JUST COMMENT, BECAUSE THE EVERYONE KNOWS THAT ESPECIALLY THE BUSINESS COMMUNITY IS FACING A PRETTY HEAVY HIT [00:40:07] AND THEY'RE ALREADY FACING SOME OTHER PRETTY SIGNIFICANT HITS. I JUST WANT TO THROW OUT THERE THAT I'D LIKE TO CONSIDER, NOT THE SUNSET CLAUSE, BUT MAYBE JUST A REEVALUATION OF THE RATE INCREASES, MAYBE IN YEAR THREE TO SEE WHAT FUNDS WE HAVE RECEIVED OUTSIDE FROM THE STATE AND FEDERAL. I JUST THE ESPECIALLY THE BIG BOX GOING UP TO OVER $800 A MONTH JUST SEEMS DEVASTATING. AND ANY WAY WE CAN KIND OF MITIGATE THAT WOULD BE REALLY GREAT. SO THAT'S ALL I HAVE. THANK YOU. COUNCIL MEMBER HOUSE. THANK YOU. THANK YOU SO MUCH FOR THE PRESENTATION. AND I JUST WANTED TO TAKE A MOMENT TO ACKNOWLEDGE THE FIRST OF ALL, THE NUMBER OF TIMES THAT YOU'VE COME BACK WITH THIS. BUT ALSO, I THINK IT'S REALLY IMPORTANT TO ACKNOWLEDGE THE SIGNIFICANT WORK THAT YOU'VE PUT INTO HEARING WHAT THE COMMUNITY HAD TO SAY ON THIS. WHAT BUSINESS OWNERS HAVE HAD TO SAY ON THIS, AND JUST BEING WILLING TO EXERCISE THAT FLEXIBILITY TO KEEP REASSESSING AND LOOKING AT DIFFERENT WAYS TO DO THIS. IT'S JUST, I THINK, VERY MEANINGFUL TO SEE THIS COMING BACK AND CONSTANTLY REFLECTING THOSE SHIFTS AND THOSE CHANGES FOR MEETING THOSE NEEDS. SO JUST WANTED TO ACKNOWLEDGE THAT AND THANK YOU FOR THAT. IN TERMS OF MY QUESTION, I THINK IT KIND OF TOUCHES ON BOTH WHAT VICE MAYOR AND COUNCIL MEMBER MATTHEWS WERE SPEAKING TO IN TERMS OF THE SUNSET POTENTIAL. AND I RECALL FROM THE LAST CONVERSATION THAT WE HAD ABOUT THIS, THERE WAS ALSO DISCUSSION OF JUST HAVING SOME SORT OF TRIGGER IN PLACE TO LOOK AT THESE THINGS ANNUALLY. AND I'M WONDERING WHAT THAT LOOKS LIKE. IS THAT SOMETHING THAT WOULD BE BUILT INTO WHAT'S BEING PROPOSED? IS THAT SOMETHING THAT WE WOULD JUST BASICALLY HAVE TO CALENDAR? BUT I WANT TO MAKE SURE THAT THAT IS PART OF WHAT WE'RE MOVING FORWARD IN THIS IF THERE'S A WAY TO HAVE THAT BUILT IN. I THINK I'D PROBABLY DEFER TO RICK ON THIS. THE EASIEST ANSWER I'D HAVE FOR A TRIGGER IS IF WE WERE TO CHOOSE ONE OF THE RATES FROM JANUARY, IF THAT WAS THE CHOSEN PATH, THEN I WOULD SAY THERE'S A VERY EASY TRIGGER COME JUNE OR JULY, IF THESE HOUSE BILLS PASS, THAT WOULD BE A VERY OBVIOUS WAY OF REDUCING IT. NOW, OF OTHER OPTIONS OF LOOKING AT YEAR TWO OR YEAR THREE OR YEAR FIVE. I'LL PROBABLY RELY A LITTLE BIT MORE ON RICK ON THAT. I THINK TRIGGER STILL WILL STILL HAVE THE SAME IMPACT AS A SUNSET RATE. YOU KNOW, IT'S STILL GOING TO BE SOMETHING THAT'S IN OUR ORDINANCE, THAT'S IN OUR CODE THAT BOND BUYERS WILL BE LOOKING AT. YOU KNOW, IF YOU DON'T HAVE A GUARANTEED RATE, HOW ARE YOU GOING TO PAY YOUR BILLS? AND THEN IT GOES ALSO TO STAFFING. HOW ARE WE GOING TO HIRE? TO STAFF EXPAND THE PROGRAM. UNDERSTANDING THAT. THE RATE MAY NOT BE RENEWED. IT MAY NOT BE INCREASED IN THAT THIRD, FOURTH YEAR. SO I STILL. I AM NOT FINANCIALLY SOUND WITH HAVING A TRIGGER OR A SUNSET. IT JUST DOESN'T MAKE FISCAL SENSE TO MAKE AN ENTERPRISE FUND STRONG. WE HAVE WE WE COME BACK TO COUNCIL EVERY THREE OR FOUR YEARS WITH A RATE STUDY. WE USUALLY WANT TO DO IT IN YEAR THREE, MAYBE FOUR. LEADING UP TO THAT FIFTH YEAR FOR A POSSIBLE RATE INCREASE. SO WE WILL HAVE THOSE MEASURES IN PLACE TO COME BACK TO COUNCIL. PLUS, THERE'S THE ANNUAL BUDGETARY PROCESS THAT COUNCIL WILL BE ABLE TO SEE WHERE OUR FIVE YEAR PLANS LIE. THE HEALTH OF THE FUNDS AND COUNCIL COULD BRING UP QUESTIONS AND ASK US ABOUT THE RATES. IS IT ADEQUATE? IS IT NEED TO BE ADJUSTMENT? IT'S SOMETHING THAT CAN BE LOOKED AT ON AN ANNUAL BASIS DURING THE BUDGET PROCESS. THAT'S DEFINITELY AFFORDED TO COUNCIL WHEN WE'RE TALKING ABOUT APPROPRIATIONS AND SO FORTH. SO I DON'T KNOW WHAT YOUR THINK AS FAR AS PUTTING A TRIGGER. BUT I GUESS I DON'T SEE IT FISCALLY SOUND THING TO DO. YEAH, I APPRECIATE THAT. AND I THINK MAYBE FOR ME THERE'S THERE'S MAYBE JUST SOME DIFFERENCES AND I MIGHT BE USING THE WRONG WORD IS BASICALLY WHAT I'M TRYING TO SAY. WHAT I'M LOOKING FOR IS HOW WE ENSURE THAT ACCOUNTABILITY MAYBE FROM OUR SIDE THAT WE ARE TAKING THAT LOOK TO SEE, LIKE, ARE WE ADJUSTING UP OR DOWN? BUT I FEEL LIKE THAT'S SOMETHING THAT'S BEEN ASKED OF US IS WE'VE SAID THAT WE CAN LOOK AT THAT AND THERE'S POTENTIAL TO EVEN LOWER IT IF WE'RE SEEING THAT IN THE UPCOMING YEAR, THERE'S NOT NECESSARILY THE NEED AND I THINK IT WOULD BE MEANINGFUL FOR THE COMMUNITY AT LEAST TO KNOW THAT THAT'S NOT [00:45:09] JUST SOMETHING THAT WE'RE SAYING, IT'S SOMETHING THAT WE'RE COMMITTING TO IN SOME WAY. SO TRIGGER IS PROBABLY THE WRONG WORD. BUT JUST LOOKING AT HOW DO WE I'M SURE CODIFY IS THE WRONG WORD AS WELL, BUT HOW DO WE JUST MAKE SURE THAT THAT'S THAT'S KNOWN, THAT THAT IS OUR INTENTION AND THAT WE'RE GOING TO FOLLOW THROUGH WITH THAT AS IS REALLY WHAT I'M GOING AFTER THERE? YEAH, I REALLY THINK THE BUDGET PROCESS PROBABLY OUR BEST WAY TO ADDRESS THAT. SO. MAYBE. HAVING THE BUDGET TEAM PUT IT ON OUR AGENDA FOR TWO YEARS FROM NOW TO HAVE A DEEPER DIVE INTO THE STORMWATER RATES AND STORMWATER PROGRESS WOULD PROBABLY BE A GOOD SPOT TO HAVE THAT IN. YOU COULD ALWAYS DROP A FARE TO HAVE THE DISCUSSION, SO WE HAVE IT ON OUR CALENDAR ON THE CITY CLERK'S CALENDAR THAT WE WANT TO HAVE THAT DISCUSSION FURTHER. JUST A COUPLE OF THOUGHTS ON THAT PROCESS. DOES THAT HELP? OKAY. AND RICK, DON'T GO AWAY. AND THEN, COUNCILMEMBER HARRIS, I SEE THAT YOU HAVE A COMMENT, BUT ALONG THOSE SAME LINES. SO IF WE DO RECEIVE THE FUNDING THROUGH THE LEGISLATURE. AT THAT POINT, WE'LL COME BACK AND REVISIT IT AND SEE WHETHER WE NEED TO ADJUST. IT DEPENDS ON WHICH OPTION YOU GO WITH. I'LL GO WITH ONE OF THE BEES. ALL THAT DETENTION MAINTENANCE IS OUTSIDE FUNDING, RIGHT? SO IF WE GET THE FUNDING THAT JUST CURES THAT LINE, IT MAY NOT NECESSARILY CLEAR THE OTHER OPERATIONS. IT DEPENDS ON HOW THE BILL IS WRITTEN. BUT WE HAVE AN OPTION IF IT GOES BROADER, UNLESS IT'S COVER OTHER OPERATING EXPENSES AND STORMWATER FUND. YEAH. WE CAN COME BACK TO YOU AND HAVE THAT CONVERSATION FOR SURE. BUT I DON'T RIGHT NOW I DON'T SEE THE LANGUAGE THAT BROAD. IT'S MORE ABOUT DETENTION MAINTENANCE. OKAY, THANK YOU. GARY, DID YOU HAVE SOMETHING? YEAH. I JUST WANTED TO ADD ONE COMMENT. WHEN YOU TALK ABOUT ACCOUNTABILITY TO THE PUBLIC, I JUST WANTED TO REASSURE YOU AND THE PUBLIC THAT IT IS IN OUR WATER POLICIES TO REVISIT OUR RATES ON A REGULAR BASIS. I DON'T KNOW WHAT IT IS RIGHT OFF THE TOP OF MY HEAD. IT'S THAT 3 TO 4 YEAR MARK THAT DOESN'T ADDRESS THAT IMMEDIATE CONCERN OF THIS STATE FUNDING. BUT FROM A POLICY PERSPECTIVE, WE OPERATE LIKE THAT FOR BOTH STORM WATER AND ALL OF OUR OTHER WATER UTILITIES AS WELL. THANK YOU. AND COUNCIL MEMBER HARRIS. THANK YOU, MAYOR. FIRST OF ALL, I JUST WANT TO THANK THE TEAM FOR ALL THEIR WORK. I PUT IT IN THE CHAT, BUT I WANTED YOU ALL TO HEAR THAT WE REALLY DO APPRECIATE THE WORK YOU DO. YOU WENT BACK AND YOU LOOKED AT THINGS AGAIN AND IT'S NOT ALWAYS EASY TO COME BACK AND SAY, YOU KNOW WHAT, MAYBE WE COULD DO THIS, OR MAYBE WE COULD DO THAT AND SHOW US SOME OF THOSE SCENARIOS. SO I THANK YOU FOR STEPPING UP TO THE PLATE. THE OTHER THING THAT I JUST WANT AND THIS IS NOT MORE FOR THE STAFF, BUT IT'S MORE FOR THE PUBLIC AND FOR THE REST OF US THAT WHEN YOU ALL ARE LOOKING AT THESE INCREASES, WE HAVE TO REMEMBER THAT THIS IS AFFECTING YOU TOO, BECAUSE YOU LIVE IN THE CITY AND SO YOU'RE NOT DOING THIS BLINDLY. YOU'RE DOING THIS WITH ALL OF US IN MIND. AND WHILE THE FLOODING MAY NOT BE HAPPENING IN PONDEROSA TRAILS, I STILL HAVE TO BE RESPONSIBLE FOR THE REST OF THE CITIZENS WHO LIVE IN MY COMMUNITY. SO I JUST WANTED TO SAY THAT THAT THIS IS AFFECTING YOU ALL, TOO, THAT YOU'RE GOING TO PAY WHATEVER INCREASE THAT WE COME UP WITH OR WHATEVER WE DO. SO, YOU KNOW, WE'RE ALL IN THIS TOGETHER. SO SORRY, THAT'S MY SOAPBOX AND I'LL GET OFF OF IT RIGHT NOW. THANK YOU. COUNCIL MEMBER MCCARTHY. REGARDING THIS IDEA THAT WE NEED TO COME BACK AND REVISIT THIS FROM TIME TO TIME. I JUST POINT OUT THAT ON WATER RATES WE DO THAT. SO IF WE CAN DO IT ON WATER RATES, WE CAN DO IT ON THIS. IT'S ESSENTIALLY THE SAME ISSUE. THANK YOU. THANK YOU. ALL RIGHT. I DON'T SEE ANY MORE QUESTIONS FROM COUNCIL MEMBERS, SO I'M GOING TO TAKE PUBLIC COMMENT. I THINK WE ONLY HAVE ONE PUBLIC COMMENTER HERE IN PERSON AND NOBODY ONLINE. SO, JEFF, IS IT [INAUDIBLE]. YES, PLEASE. THANK YOU. WELCOME. ALL RIGHT. WELL, COUNCIL MEMBERS HAVE STOLE SOME OF MY THUNDER, SO I WAS GOING TO SAY THANK YOU FOR COMING UP WITH SOME DIFFERENT SCENARIOS. AND SO AS A RESIDENT AND JUST AN INTRODUCTION, I LIVE IN COCONINO ESTATES ON STEFANO WAY, SO I'VE GOT 6000 SANDBAGS AT MY HOUSE, SO I KNOW THE PAIN. AND THEN AS ONE OF THE CO AUTHORS OF PUTTING TOGETHER THE CITIZEN PETITION, SO LITERALLY SPOKE WITH HUNDREDS OF RESIDENTS AS WE DID THAT. [00:50:10] AND YOU KNOW, THE COMMON THEME OF TALKING TO EVERYBODY IS LIFE ON HOLD. YOU KNOW, LIFE PAUSED AND, YOU KNOW, THAT'S WHERE WE'RE ALL AT IN TERMS OF ALL THAT IN TERMS OF OF THE IMPACT. AND WE APPRECIATE IN THESE THREE SCENARIOS THAT WERE PRESENTED TODAY USING GENERAL FUNDS OR LEGISLATURE IN ORDER TO ACCELERATE THAT, TO GET THAT DONE VERSUS AN INDETERMINATE SOMETIME IN THE FUTURE. SO JUST WANTED TO COMMENT THAT WE THANK ALL OF YOU ALL FOR THAT AND PUSHING AND AND WORKING THROUGH THAT. AND OBVIOUSLY, THERE'S ALWAYS IT'S A POINT COUNTERPOINT ON ALL OF THAT. AND THEN JUST ONE QUICK REMINDER ON THAT WAS, YOU KNOW, AS WE WERE PUTTING TOGETHER THAT, YOU KNOW, IN TERMS OF USE OF GENERAL FUNDS, I DON'T KNOW ALL THE GOVERNANCE ON IT, BUT IN THE SAME WAY, A COUNTY LOAN TO THE FLOOD DISTRICT FOR THEIR WORK, YOU KNOW, THE YOU KNOW, WHEN WE WERE COMING BRAINSTORMING, THAT WAS THE THE CONCEPT THAT WE HAD ON THAT NOT NECESSARILY AS A BACKSTOP BASED UPON OTHER THINGS HAPPENING BEFORE THAT. AND OBVIOUSLY THERE'S MULTIPLE THINGS, BUT THERE'S ALSO A LOT OF DISCRETIONARY SPEND IN THAT, WHETHER IT BE FLEET OR WHATEVER, MAINTENANCE CAN BE DEFERRED. I DO A LOT OF EQUIPMENT MAINTENANCE. I KNOW THAT WELL. SO AS YOU ALL CONSIDER THAT, YOU KNOW, THAT'S VERY IMPORTANT TO US. AND AS THOUSANDS OF RESIDENTS IN COCONINO ESTATE. SO THAT'S MY COMMENT ON IT. SO FUNDAMENTALLY, THANK YOU AND WE APPRECIATE THE MOVEMENT AND THE DIRECTION THAT WE'RE GOING. THANK YOU SO MUCH. ALL RIGHT. ANY OTHER COMMENTS? QUESTIONS. NO, I DON'T SEE ANY. SO. I WOULD LIKE TO CLOSE THE PUBLIC HEARING. AND I WILL ENTERTAIN A MOTION TO READ ORDINANCE. WELL. WE NEED TO DECIDE WHICH SCENARIO AND THEN READ ORDINANCE NUMBER 2023-03 BY TITLE ONLY FOR THE FIRST TIME. RIGHT, MAYOR. THIS IS A CITY ATTORNEY STERLING SOLOMON, IF YOU WANT TO REOPEN THE PUBLIC HEARING TO DISCUSS THAT SCENARIO, THAT'S UP TO YOU. OR YOU CAN KEEP IT CLOSED AND HAVE THAT DISCUSSION SEPARATELY. I WOULD RECOMMEND REOPENING THE PUBLIC HEARING FOR THAT DISCUSSION. OKAY, LET'S REOPEN THE PUBLIC HEARING AND LET'S HAVE THE DISCUSSION ABOUT WHICH SCENARIO COUNCIL WOULD LIKE TO CHOOSE. I DON'T SEE ANYTHING ONLINE. I BELIEVE COUNCIL MEMBER MCCARTHY HAS GOT HIS. HE JUST PUT A C? YES. COUNCIL MEMBER MCCARTHY. GREAT. GREAT. WELL, A COUPLE OF THOUGHTS. ONE IS THAT TAKING MONEY FROM THE GENERAL FUND TO PAY FOR FLOOD CONTROL? I DON'T LIKE THAT IDEA. I DO REALIZE THAT SOMETIMES WE MIGHT HAVE TO DO THAT, BUT IT'S ON A LOAN BASIS. THE ENTERPRISE FUNDS SHOULD PAY BACK THE GENERAL FUND EXPENDITURES. BASICALLY, MY PHILOSOPHY ON ENTERPRISE FUNDS IS THEY DEFINITELY SHOULD SUPPORT THEMSELVES. I SEE SOME RISK IN RELYING ON OUTSIDE SOURCES. SO, YOU KNOW, ON THE OTHER HAND, IF WE DO OR DON'T GET OUTSIDE FUNDING FROM THE STATE OR THE FEDERAL OR WHATEVER, WE CAN ALWAYS COME BACK AND ADJUST WHERE WE WANT TO GO. SO THE WAY I SEE IT, AMONGST THE SCENARIOS THAT ARE ON THE TABLE OR ON THE SCREEN RIGHT NOW. I WOULD GO WITH SCENARIO THREE. THANK YOU VERY MUCH. I GUESS YOU'RE NOT READY FOR A MOTION YET, I TAKE IT, SINCE WE'RE STILL IN A PUBLIC HEARING? YES. AND OUR CITY MANAGER HAS SOMETHING TO ADD. OKAY. THANK YOU, MAYOR. THANK YOU, COUNCIL MEMBER MCCARTHY, FOR YOUR COMMENTS. NICE SEGUE TO THE COMMENT I WAS GOING TO MAKE, WHICH IS ABOUT THE RISK OF SEEKING OUTSIDE DOLLARS. THERE'S BEEN A LOT OF REFERENCE TO OUR EFFORTS AT THE STATE LEVEL, THE STATE HOUSE AND A COUPLE OF BILLS PENDING. I JUST WANT TO HELP INFORM THE DISCUSSION BY LETTING COUNCIL KNOW WE ARE, WE HAVE SECURED ADDITIONAL LOBBYING EFFORTS TOWARD THAT [00:55:03] VERY OBJECTIVE. SO WE ARE PUTTING GOOD RESOURCES INTO THIS EFFORT. AND STAY TUNED ON THAT. BUT I WANT TO GIVE YOU THAT ASSURANCE THAT WE'RE MOVING FULL SPEED AHEAD ON THAT. THANK YOU. THANK YOU, COUNCILMEMBER MATTHEWS. THANK YOU, MAYOR. I JUST WANT TO MAKE THE COMMENT THAT AND RICK CAN CORRECT ME IF I'M INCORRECT IN MY ASSUMPTION THAT I'M LEANING TOWARDS SCENARIO ONE. WE JUST DID A RATE INCREASE IN 2018. SO IT'S NOT I'M ASSUMING WE COULD DO AN ADJUSTMENT NEXT YEAR OR IN TWO YEARS. AND THIS WAY, IF WE DID SCENARIO ONE, IT SHOULD LEAVE SOME OF THE BUSINESS COMMUNITY LESS NERVOUS TO SEE SUCH A HUGE JUMP BECAUSE THESE AVERAGE MONTHLY INCREASES ARE NOT THE TOTAL AMOUNT. IT'S INCREASING FROM WHAT IT IS TODAY THAT MUCH MORE. AND SO I THINK IF WE DID SCENARIO ONE TO GET THE BALL ROLLING AND THEN AS THINGS EITHER COME AND PRESENT THEMSELVES THIS YEAR OR NOT, WE COULD THEN MOVE AND MAYBE WE CAN'T DO THIS, BUT I'M ASSUMING WE COULD THEN MOVE NEXT YEAR TO DO ANOTHER RATE INCREASE DEPENDING ON WHAT HAPPENS THIS FISCAL YEAR. BUT IT WOULD GIVE SCENARIO ONE WOULD GIVE THE BUSINESS COMMUNITY SOME ASSURANCE, AT LEAST FOR THE TIME BEING, THAT THEY DON'T JUST THROW IN THE TOWEL BECAUSE THEY'RE LOOKING AT A FIVE YEAR HORIZON THINKING, HOLY SMOKES, I CAN'T SURVIVE THIS. SO IT MIGHT BE A GOOD IT'S WHAT I CAN FEEL COMFORTABLE WITH DOING ON SCENARIO ONE, KNOWING THAT WE WILL LOOK AT RATE INCREASES MOVING FORWARD. BUT IT HAS TO BE MORE OF A MOTION AND SOMETHING MORE PURPOSEFUL THAN JUST SAY, OH, WE COULD LOOK AT IT IN OUR NEXT BUDGET RETREAT AND STOP THE RATE INCREASES. I DON'T THINK THAT GIVES ANYBODY A WARM AND FUZZY. THAT'S ALL I HAD TO SAY. THANK YOU COUNCIL MEMBER. COUNCIL MEMBER HARRIS. YEAH. THANK YOU, MAYOR. WE'RE ONLY AS SAFE AS OUR MOST VULNERABLE POPULATION, SO JUST KEEP THAT IN MIND. AND CITY MANAGER AND ATTORNEY STERLING, BEFORE I'M GOING TO ASK THIS QUESTION, BUT BEFORE STAFF ANSWERS IT, I WANT YOU TO MAKE SURE IT'S OKAY TO ASK. SO MY QUESTION WOULD BE, WHICH SCENARIO WOULD YOU CHOOSE AND WHY? WHO IS THAT QUESTION FOR? I'LL WEIGH IN FROM A LEGAL PERSPECTIVE, I DON'T HAVE A PREFERENCE WITH RESPECT TO SCENARIOS FROM A LEGAL PERSPECTIVE. I THINK THAT IS SOMETHING THE COUNSEL HAS TO WEIGH THE DIFFERENT RISKS ASSOCIATED WITH THAT FROM A LEGAL PERSPECTIVE, THEY'RE ALL. OH, EXCUSE ME. EXCUSE ME. I WASN'T ASKING YOU THE QUESTION. I WAS ASKING YOU TO LET ME KNOW IF THERE IS ANY LEGAL ISSUES WITH ME ASKING STAFF THAT QUESTION. NO, NO. OKAY. ALL RIGHT. THANK YOU. SO I JUST WANTED TO KNOW, YOU KNOW, YOU ALL HAVE GONE THROUGH ALL THE SCENARIOS. YOU'VE LOOKED AT ALL THE INS AND OUTS, YOU KNOW, PROS AND CONS. AND SO I'M JUST INTERESTED IN WHAT SCENARIO WOULD YOU CHOOSE AND WHY WOULD YOU CHOOSE IT? IF ANYBODY FEELS COMFORTABLE ANSWERING THAT. AND IF YOU DON'T, YOU KNOW, THAT'S FINE, TOO. I TEND TO BE RATHER BLUNT, BUT I'LL TRY TO COUCH IT A LITTLE BIT. I PREFER FLEXIBILITY, AND THAT'S WHAT I'M GOING TO SAY. THERE ARE SO MANY UNCERTAINTIES HERE, AND THAT'S WHY WE'VE COME TO COUNCIL SO MANY TIMES, BECAUSE I THINK WE'RE ALL HAVING A HARD TIME WRAPPING OUR HEADS AROUND WITH THE AMOUNT OF UNCERTAINTY AND THE DOLLAR VALUE THAT GOES WITH THAT UNCERTAINTY. SO WE'RE TALKING WILD SWINGS, MILLIONS OF DOLLARS THIS WAY, MILLIONS OF DOLLARS THAT WAY. WE HAVE $36 MILLION OF DEBT WITHIN STORM WATER, WHICH IS QUITE LARGE FROM MUNICIPAL SIDE. SO THERE'S A LOT OF UNCERTAINTY. SO BECAUSE OF THAT, I TEND TO LIKE FLEXIBILITY. THE MOST FLEXIBLE WE CAN BE. IS TO CHOOSE A RATE THAT'S PESSIMISTIC. THAT ASSUMES THAT WE ARE NOT GOING TO GET THE FULL EXTERNAL FUNDING, THAT THE GENERAL FUND IS GOING TO TAKE A HIT FROM X, Y OR Z AND THEN ADJUST THE RATE DOWN. AND THE REASON I SAY THAT IS TO ADJUST THE RATE DOWN IS VERY I WON'T SAY VERY QUICK, BUT IT'S RELATIVELY RAPID. IT IS WHAT WE'RE GOING THROUGH RIGHT NOW. WE HAVE ONE PUBLIC HEARING. WE HAVE A ONE READ OF THE NEW ORDINANCE. THE SECOND READ, WE HAVE 30 DAYS. SO WITHIN 30 DAYS WE CAN ADJUST THE RATE DOWN. [01:00:01] AND IT'S VERY EASY TO ADJUST THE RATE UP. I MEAN, THIS TIME TOOK US OVER SIX MONTHS. WE'RE PAYING OUR CONSULTANTS. YOU KNOW, THERE'S QUITE A BIT OF WORK THAT GOES INTO IT. THERE'S A LOT MORE ANGST WITH THE RATE GOING UP FOR OBVIOUS REASONS THAN A RATE COMING DOWN. SO MY PERSONAL OPINION, WE CHOOSE A RATE FROM ONE OF THOSE FIRST THREE SCENARIOS. SO AGAIN, WE HAVE SIX SCENARIOS ON THE TABLE HERE. THE ONES WE'RE SHOWING ON THE SCREEN OR WHAT WE'RE CALLING THE B SCENARIOS, THESE ARE THOSE SCENARIOS THAT ARE REDUCED DUE TO EXTERNAL FUNDING, EITHER THE GENERAL FUND OR HOUSE BILL. SO STATE FUNDING. MY PERSONAL RECOMMENDATION IS PERSONAL. THIS IS NOT THE CITY STANCE IS CHOOSE ONE OF THE JANUARY OPTIONS AND WE COME BACK IN JUNE OR JULY AND WE REDUCE THESE RATES IF WE GET EITHER THE HOUSE BILL OR IF WE KNOW THAT THE GENERAL FUND CAN FULLY SUPPORT US. BUT, YOU KNOW, MY WHOLE BUSINESS IS RISK MANAGEMENT. IT'S LIFE AND SAFETY. AND THE BEST WAY TO TO REDUCE RISK IS TO TO HAVE SOME CERTAINTY THAT YOU CAN COVER YOURSELF FINANCIALLY. AND THE BEST WAY TO DO THAT IS TO HAVE THE FLEXIBILITY. THAT'S JUST MY PERSONAL OPINION. HAPPY TO HAVE SOMEONE TELL ME I'M WRONG. THANK YOU, ED. THANK YOU. CITY MANAGER. DID YOU HAVE SOMETHING TO ADD? NO OTHER THAN I WAS QUITE COMFORTABLE WITH STERLING MAKING THE DECISION. BUT NO, I DON'T HAVE ANYTHING TO ADD. THANK YOU. THANK YOU FOR ME THERE. SO WE HAVE COUNCIL, I MEAN VICE MAYOR ASLAN AND THEN I WASN'T SURE COUNCIL MEMBER SWEET DID YOU WANT TO SAY SOMETHING? CAN WE GO TO VICE MAYOR FIRST AND THEN TO COUNCIL MEMBER SWEET? OKAY. HI, EVERYBODY. YEAH. UNCOMFORTABLE CONVERSATION. OBVIOUSLY, THE CITY HAS COME TO US NUMEROUS TIMES WANTING DIRECTION HERE, AND WE'VE DONE OUR DUE DILIGENCE, LOOKING UNDER THE RUG, CHECKING THE COUCH CUSHIONS FOR EXTRA COINS, AND NOW WE KIND OF HAVE TO PULL THE TRIGGER ON THIS, AND I'M PREPARED TO DO SO. I WOULD I THINK WHAT MY INSTINCT TELLS US WE NEED TO DO IS SCENARIO THREE. I MAY BE WILLING TO SETTLE WITH SCENARIO TWO B AS AN ADDITIONAL COMPROMISE TO ALL THE OTHER COMPROMISE THAT'S ALREADY HAPPENED AND THAT STAFF AND STORM WATER HAS COME TO US WITH. YOU KNOW, THERE'S SOME PRETTY LOUD VOICES IN THE ROOM, SO TO SPEAK, WHEN IT COMES TO THE CONCERNS AROUND THE BUSINESS COMMUNITY. AND WE'VE BEEN HIT FAIRLY HARD WITH THOSE CONCERNS. AND I REALLY DO APPRECIATE THOSE CONVERSATIONS. I'VE MENTIONED SEVERAL TIMES THAT DIALOG IS VERY IMPORTANT. IT'S IMPORTANT FOR US TO HAVE ALL OF THE INTERESTS IN THE ROOM, AND I THINK WE MOVE FORWARD AT A BETTER VECTOR SETTING OR COMPASS BEARING, WHATEVER YOU WANT TO CALL IT, WHEN ALL THOSE CONSIDERATIONS ARE TAKEN INTO ACCOUNT. AND I BELIEVE THAT SCENARIO THREE AND SCENARIO TWO IS THE EMBODIMENT OF US GETTING TO THAT POINT. WHAT WE CAN'T DO IS TAKE OUR EYE OFF THE BALL IN TERMS OF WHAT WE NEED TO DO FOR THE PUBLIC ONGOING AND MOVING FORWARD. THE PUBLIC SPEAKER TODAY TALKED ABOUT HOW LIFE IS ON HOLD FOR SO MANY PEOPLE IN THESE FLED AFFECTED AREAS. AND I DON'T EVER WANT TO FORGET THAT. WHILE THIS CREATES DISCOMFORT AND TENSION WITH OUR BOX STORES AND OUR RESTAURANTS AND OUR CUSTOMERS AND OUR PATRONS AND OUR OWN POCKETBOOKS, WE NEED TO KEEP THE INTEREST OF OUR FAMILIES AND OUR FLAGSTAFF RESIDENTS MOST AFFECTED BY THESE FLOODING ISSUES IN MIND. AND WE NEED TO REMEMBER THAT THIS ISN'T SOMETHING HAPPENING IN A VACUUM. THESE PROBLEMS WERE CAUSED BY TWO FIRES THAT OCCURRED SEPARATELY BUT RECENTLY, AND WE DON'T KNOW WHEN THE NEXT FIRE IS GOING TO COME AND WHERE IT'S GOING TO BE AND WHAT NEW NEIGHBORHOODS IT'S GOING TO AFFECT THAT AREN'T EVEN THINKING ABOUT THIS CONVERSATION RIGHT NOW BECAUSE THEY HAVE THE LUXURY OF BEING TUNED OUT. WE NEED TO MAXIMIZE OUR FLEXIBILITY. I AM VERY NERVOUS ABOUT RELINQUISHING THE CONTROL THAT WE CAN HAVE OVER THIS SITUATION TO THE STATE MORE THAN WE ABSOLUTELY NEED TO. YOU KNOW, THE STATE OF ARIZONA LOVES TO PUT FLAGSTAFF'S NECK ON THE CHOPPING BLOCK OVER AND OVER AND OVER AGAIN. WE'RE SEEING THE CARROT AND STICK APPROACH TO THE WAY THAT WE WANT TO ENGAGE IN SELF-RULE AND THAT WE WANT TO MANAGE OURSELVES. I'M VERY NERVOUS THAT IF WE RELY TOO MUCH ON GRANT FUNDING, THIS COULD BECOME ANOTHER POINT OF CONTENTION WHERE THEY'RE HANGING IT OVER OUR [01:05:09] HEADS AND FORCING US TO ACT IN CERTAIN WAYS. OR WE DON'T GET THAT MONEY. WE HAVE AN OPPORTUNITY TO GAIN CONTROL, TO MAINTAIN CONTROL OF OUR OWN DESTINIES HERE. AND WE HAVE AN OBLIGATION TO OUR RESIDENTS AND OUR HOMEOWNERS AND OUR FAMILIES IN TOWN TO DO THIS RIGHT, TO GET THE JOB DONE TO SOLVE TOMORROW'S PROBLEMS TODAY. AND I THINK WE NEED THE MOST FLEXIBILITY WE CAN FOR DOING THAT. SO I WOULD BE SUPPORTIVE OF SCENARIO THREE. I WOULD BE WILLING TO SETTLE THROUGH SCENARIO TWO AND VERY APPRECIATIVE OF THE FACT THAT WE ARE ABLE TO ADJUST THESE RATES IN THE FUTURE BASED OFF OF REAL TIME INFORMATION THAT'S COMING IN. I DO THINK JUST TO KIND OF SURPRISE TWIST ED JUST TO REBUT YOUR COMMENT THAT IT'S IT'S IT'S FAIRLY EASY TO ADJUST THESE RATES DOWN. I'M SKEPTICAL OF THAT. AND I'M SURE OUR BUSINESS LEADERS IN THE COMMUNITY SHARE THAT SKEPTICISM. IT'S PRETTY HARD TO TURN OFF THE MONEY FAUCET ONCE WE'VE TURNED IT ON. BUT ANYWAY, THAT'S JUST MY THOUGHT. AT LEAST WE DO HAVE THE FLEXIBILITY BUILT INTO THE SYSTEM, AND I WOULD WELCOME REVISITING THAT RATE TO LOWER IT AT SOME POINT IF WE'RE ABLE TO DO SO. AND OUR WORST CASE SCENARIO PLANNING IS NOT COMING TO PASS, BUT RIGHT NOW. I VERY MUCH SUPPORT AND WOULD LIKE TO PERSUADE THE REST OF THE COUNCIL TO SUPPORT THE MOST FLEXIBILITY POSSIBLE. THANK YOU. THANK YOU, VICE MAYOR. COUNCILMEMBER MATTHEWS. THANK YOU MAYOR AND COUNCIL VICE MAYOR ASLAN DID ADDRESS ONE OF MY QUESTIONS, WHICH WAS WHEN WAS THE LAST TIME A UTILITY REDUCED RATES? I DON'T KNOW THAT THAT'S A REAL FEASIBLE, HOPEFUL SOLUTION. BUT MY OTHER COMMENT GOING BACK TO SCENARIO ONE B. THERE'S TEN PROJECTS THAT ARE LISTED THERE AND MAYBE I'M YOU KNOW, I JUST NEED MORE INFORMATION, BUT I CAN'T IMAGINE GETTING THROUGH THOSE FIRST TEN IN ONE YEAR. I AGREE THAT WE HAVE A WHOLE COMMUNITY TO TAKE CARE OF AND THEY'RE LIVING LIKE THIRD WORLD COUNTRIES WITH SANDBAGS IN BOTH THE BOTH FIRE DAMAGE AREAS. SO I'M NOT SUGGESTING THAT WE DON'T ADDRESS THOSE. BUT I THINK IN ONE YEAR WE HAVE OUR HANDS FULL JUST IN THE TOP TEN THAT ARE LISTED THERE, WHICH GIVES US AN OPPORTUNITY TO LOOK AT GRANT FUNDING AND OTHER SOURCES DOWN THE LINE AND NOT MISS A BEAT, BUT DO GIVE SOME STABILITY AND SOME HOPE IN THE LARGER COMMUNITY THAT'S AFFECTED, WHICH TRICKLES DOWN TO US IF THESE BUSINESSES CAN'T SUSTAIN THAT, IT'S DETRIMENTAL TO ALL OF US. SO I'M STILL VYING FOR SCENARIO ONE B UNLESS MAYBE WE CAN DO 20 OF THEM IN ONE YEAR. I DON'T KNOW. I'M THINKING THE TOP TEN IS GOING TO BE A HANDFUL TO TO DO IN ONE YEAR, WHICH GIVES US TIME TO REEVALUATE A RATE INCREASE NEXT YEAR. THAT'S ALL I HAVE TO SAY. THANK YOU COUNCIL MEMBER. ED. SO JUST AS A POINT OF CLARIFICATION, THE LIST OF PROJECTS THAT WE'RE SHOWING, THAT IS THE FIVE YEAR PLAN. SO THAT'S ACTUALLY FIVE AND ONE HALF YEAR PLAN AND I SAY FIVE AND A HALF YEAR PLAN BECAUSE WE ARE MORE THAN HALFWAY THROUGH A FISCAL YEAR. SO SOME OF THOSE PROJECTS ARE ALREADY COMPLETE BUT UNFUNDED. FOR EXAMPLE, CALEB INLET, [INAUDIBLE] INLET, THE TWO PROJECTS, THE SPRUCE WASH WATERSHED, WE SHOW ON THIS SET OF SLIDES, THOSE ARE ALREADY COMPLETE BUT NEED TO BE PAID FOR. DOWNTOWN MILE THAT'S LARGE, A PART OF A LARGER CAPITAL PROGRAM THAT'S OUTSIDE OF STORMWATER. SO THAT IS OUR $2 MILLION CONTRIBUTION TO THAT LARGER PROGRAM. RIO DE FLOOD CONTROL PROJECT OBVIOUSLY HAS BEEN GOING ON FOR QUITE SOME TIME, 20 YEARS PLUS, SO THAT IS ACTUALLY AN ARMY CORPS PROJECT. SO SOME OF THESE PROJECTS ARE NOT BEING DELIVERED 100% BY STORM WATER AND DEFINITELY NOT BEING DELIVERED JUST IN ONE YEAR. SO JUST A POINT OF CLARIFICATION. THIS LIST IS FOR FIVE AND ONE HALF YEAR TIMESPAN AND SOME OF THESE PROJECTS ARE ALREADY COMPLETE AND NEED TO BE FUNDED. THANK YOU. THANK YOU. ARE THERE ANY OTHER QUESTIONS OR COMMENTS FROM COUNCIL? HEARING NONE. WE HAVE AN ADDITIONAL REQUEST FOR PUBLIC COMMENT, AND THAT IS FROM JOE GALLI. WELCOME. [01:10:03] THANK YOU, YOUR HONOR. MAYOR AND COUNCIL AND CITY STAFF, JOE GALLI, 101 WEST ROUTE 66. I AM THE SENIOR ADVISOR OF PUBLIC POLICY FOR THE GREATER FLAGSTAFF CHAMBER OF COMMERCE. I APOLOGIZE FOR BEING LATE TO THIS DISCUSSION THIS EVENING. HAD A CONFLICTING MEETING, BUT I AM HAPPY TO BE HERE. AND JUST MY COMMENTS TODAY REVOLVE AROUND THANKFULNESS, PARTICULARLY TO CITY STAFF. THE CITY MANAGER, THE CFO, AND THE HEAD OF THE STORMWATER DIVISION WHO HAVE WORKED DILIGENTLY AND I BELIEVE A LOT OF THAT IS DUE TO FEEDBACK IN THE COMMUNITY AND TO DISCUSSIONS PUBLIC ABOUT THIS RATE INCREASE. AND WE'RE IN A DIFFERENT PLACE THAN WE WERE IN OCTOBER WITH THE INITIAL RATE INCREASE THAT WAS PROPOSED TO MAYOR AND COUNCIL. AND WE'RE IN A DIFFERENT PLACE ON A NUMBER OF FRONTS. WE HAVE NOW PIQUED THE INTEREST OF OTHER ENTITIES IN HELPING ASSIST US IN OUR FLOOD MITIGATION NEEDS, INCLUDING THE STATE OF ARIZONA AND OUR LEGISLATORS, AND HAVE A GREAT CHANCE, I THINK, TO BE SUCCESSFUL ON THAT FRONT. AND WE HAVE A REALLY LOOKING AT THE STAFF REPORT, A VERY WELL THOUGHT OUT STRATEGY ABOUT HOW WE PROCEED WITHIN THE DIVISION ITSELF. AND I THINK IT'S, YOU KNOW, CERTAINLY I'VE ADDRESSED THIS BODY BEFORE A NUMBER OF TIMES SINCE THE INCEPTION OF THE STORMWATER UTILITY ITSELF AND THE FEE ITSELF AND HAVE RAISED CONCERNS ABOUT THE IMPACTS TO THE COMMUNITY WHEN RAISING RATES. AND IN THIS CASE, I THINK WE'VE REALLY COME A LONG WAY AND WE'VE WE'VE ACHIEVED QUITE A BIT AND MINIMIZING THE IMPACT TO THE COMMUNITY WITH THE PROPOSED FEE SCHEDULE TONIGHT. IT'S CERTAINLY MUCH DIFFERENT THAN IT WAS BACK IN THE FALL OF 2022. AND SO FOR THAT, THE BUSINESS COMMUNITY IS VERY GRATEFUL. WE ACKNOWLEDGE THAT THERE ARE SIGNIFICANT NEEDS AND WE ARE VERY INTERESTED IN HELPING MAYOR AND COUNCIL AND STAFF PURSUE ADDITIONAL SOLUTIONS TO MEET THOSE NEEDS, STATE AND FEDERAL AND OTHERWISE. SO I THINK I GUESS I'LL END BY SAYING THAT AGAIN, MAYOR, COUNCIL WERE VERY THANKFUL, PARTICULARLY TO THE CITY MANAGER AND TO OTHER CITY STAFF WHO HAVE WORKED DILIGENTLY TO GET US WHERE WE ARE TONIGHT. AND WITH THAT, I'M HAPPY TO TAKE ANY QUESTIONS. THANK YOU. WE DO HAVE A QUESTION FOR YOU FROM VICE MAYOR ASLAN. HEY, JOE. YEAH. THANK YOU SO MUCH FOR ACKNOWLEDGING THAT. I WAS GOING TO ASK YOU IF YOU WERE IN A IN A PLACE WHERE YOU COULD ACKNOWLEDGE THAT. AND, YOU KNOW, THERE HAS BEEN SOME COMPROMISE AND SOME MOVEMENT. AND I HOPE YOU FEEL HEARD. I HOPE YOU FEEL LISTENED TO. I HOPE YOU FEEL THAT YOU'VE BEEN A VALUED MEMBER OF THE TEAM THAT'S, YOU KNOW, PICKING UP THIS GRASSHOPPER AND MOVING IT INTO THE ANT HOLE, SO TO SPEAK. IT'S AN ANALOGY I LIKE TO USE A LOT ABOUT THE TUG OF WAR, TUG OF WAR, OF TEAMWORK WHEN VARIOUS INTERESTS ARE TRYING TO DO A HEAVY LIFT. I THINK WE'RE GETTING THERE. AND JOE, I JUST WANTED TO ACKNOWLEDGE YOU AND EXPRESS MY GRATITUDE TO YOU AND ALSO TO MAYOR DAGGETT AND COUNCIL MEMBER SWEET FOR TAKING UP THE OPPORTUNITY THAT YOU HELPED TO CREATE TO GO DOWN TO PHOENIX AND ADVOCATE FOR SOME DOLLARS TO SHOW THAT PART OF THE STRATEGY CAN BE EFFECTIVE AND JUST REALLY, REALLY SEE A LOT OF POSITIVE OUTCOME HERE IN TERMS OF THE COLLABORATION INVOLVED IN ALL OF THIS. SO NOT REALLY A QUESTION FOR YOU, BUT JUST A HAT TIP AND MY HAT'S OFF TO YOU AND TO CHAMBER FOR SHOWING THAT THERE ARE SOME CREATIVE SOLUTIONS TO THIS PROBLEM. WE DON'T ALWAYS HAVE TO BE THE HAMMER THAT HITS THE NAIL THE SAME WAY. YOUR HONOR. AND VICE MAYOR ASLAN, THANK YOU. AND I THINK THAT OUTSIDE OF THE STORMWATER UTILITY CHALLENGES THAT ARE BEFORE YOU THIS EVENING, THERE ARE A NUMBER OF OTHER OPPORTUNITIES FOR THE BUSINESS COMMUNITY AND THIS BODY TO WORK TOGETHER TO HELP SOLVE COLLABORATIVELY THE COMMUNITY'S CHALLENGES, AND WE LOOK FORWARD TO THOSE OPPORTUNITIES AND WORKING WITH YOU. THANK YOU. THANK YOU, JOE. UH COUNCIL MEMBER SWEET. THANK YOU, MAYOR. FIRST OFF, I DO WANT TO THANK EVERYONE, STAFF FOR COMING BACK TO US SEVERAL TIMES AND WORKING WITH US. I KNOW I WAS THE ONE THAT INITIATED THE PUSH LAST TIME TO KIND OF TAKE ANOTHER PAUSE. AND I APPRECIATE THAT YOU DID THAT. [01:15:03] YOU ARE LISTENING. YOU HAVE ADDRESSED THE CONCERNS THAT WE'VE BEEN BRINGING TO YOU. AND I THINK THIS IS POSITIVE. I THINK WHERE WE'RE AT RIGHT NOW IS A GOOD DISCUSSION TO BE HAD. AND I APPRECIATE MY COLLEAGUES FOR REALLY TAKING THE TIME AND LOOKING INTO THIS AND REALIZING IT IMPACTS OUR ENTIRE COMMUNITY AND INCLUDING THE BUSINESS COMMUNITY. THIS IS A TEAM EFFORT. I APPRECIATE THE CHAMBER AND MR. GALLI WALKING US THROUGH, GOING DOWN TO PHOENIX AND LOBBYING FOR HB 2286. I APPRECIATE THAT. AND I THINK WE HAVE SHOWN WE CAN GET CREATIVE AND IT'S WORKING AND HOPEFULLY IT WILL CONTINUE TO WORK. SO WITH ALL OF THAT BEING SAID, I CAME INTO TONIGHT WITH AN OPEN MIND. I WAS NOT POSITIVE WHERE I WAS GOING TO LAND, BUT I AM. I'M VERY COMFORTABLE WITH SCENARIO 2B. I FEEL LIKE IT ADDRESSES ALL OF THE CONCERNS WITH OUR COMMUNITY, THE RESIDENTS WHO ARE IMPACTED THAT NEED ASSISTANCE AS SOON AS POSSIBLE. IT ADDRESSES OUR BUSINESS COMMUNITY. WE ARE LISTENING TO THEM AND TRYING TO MAKE SURE THAT THIS DOESN'T IMPACT EVERYBODY ON A GRAND SCALE AND IT'S STABLE. AND IF WE NEED TO BE NIMBLE DOWN THE LINE, WE CAN DO THAT. WE'VE SHOWN WE CAN DO THAT, WE CAN DO IT AGAIN. WE CAN HAVE THIS CONVERSATION IF NEED BE. BUT I THINK IT'S A VERY STABLE WAY TO GO. IT ADDRESSES ALL OF THE CONCERNS, AND I'M I'M GOING TO VOICE MY SUPPORT FOR SCENARIO 2B. THANK YOU. THANK YOU. LOOKS LIKE VICE MAYOR ASLAN WOULD LIKE TO MAKE A MOTION. OH, WAIT. WAS THE PUBLIC HEARING FIRST? YEAH. STERLING, I CAUGHT IT BEFORE YOU SAID ANYTHING, SO I WOULD LIKE TO NOW CLOSE THE PUBLIC HEARING. AND VICE MAYOR ASLAN HAS MOTION. THANK YOU SO MUCH, MAYOR DAGGETT. SO HERE'S HOW I'D LIKE TO DO THIS. I'VE BEEN AROUND THE BLOCK FOR A WHOLE TERM NOW, SO I KIND OF KNOW HOW THIS WORKS. STERLING, I THINK YOU'RE GOING TO BE WAITING IN THE WINGS TO HELP US FIGURE OUT ANYTHING CONFUSING. BUT I'M GOING TO MAKE A MOTION FOR ONE OF THESE CHOICES, AND I ENCOURAGE EVERYONE HERE TO VOTE ACCORDING TO WHAT YOU REALLY PREFER. IF YOU DON'T PREFER THAT MOTION, THEN VOTE NO. AND IF IF MY MOTION FAILS, WE CAN GO ON TO THE NEXT SCENARIO. I THINK THAT'S THE BEST WAY TO GET US ALL ON THE RECORD FOR OUR LEVEL OF SUPPORT FOR THIS. AND SO WITHOUT ANY FURTHER ADO, I WOULD LIKE TO MOVE THAT WE READ ORDINANCE NUMBER 2023-03 BY TITLE ONLY FOR THE FIRST TIME FOLLOWING SCENARIO 3B. THANK YOU, VICE MAYOR. I WILL SECOND THAT. OKAY. AND IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR. AYE. ALL THOSE OPPOSED. AYE. DID YOU GET THE ROLL CALL ON THAT? GREAT. SO SCENARIO THREE PASSES WITH A 5 TO 2 VOTE. THANK YOU ALL. OOPS. I'M SORRY TO INTERRUPT, MAYOR. I JUST WANTED TO CLARIFY FOR THE RECORD THAT THE ONLY NAY VOTES, I BELIEVE, WERE COUNCIL MEMBER SWEET AND COUNCIL MEMBER MATTHEWS CORRECT? CORRECT. YES. THANK YOU. THANK YOU VERY MUCH, MAYOR. I THINK WE WOULD HAVE FOUND CONSENSUS WITH SCENARIO TWO AS WELL. BUT IT SEEMED TO ME TO BE THE MORE CONCISE WAY TO CONSOLIDATE PROCEDURALLY THE PATH OF MOST CONSENSUS FORWARD. I APPRECIATE THAT. THANK YOU. THANK YOU. SO, CITY CLERK, COULD YOU PLEASE READ ORDINANCE NUMBER 2023-03 BY TITLE ONLY. THANK YOU, MAYOR. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF AMENDING THE FLAGSTAFF CITY CODE TITLE 12 FLOODPLAINS. CHAPTER 12-02, STORMWATER MANAGEMENT UTILITY BY AMENDING SECTION 12-02-002-003, SCHEDULE OF STORMWATER MANAGEMENT, UTILITY SERVICE CHARGES AND FEES PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES, SEVERABILITY PENALTIES, AUTHORITY FOR CLERICAL CORRECTIONS AND ESTABLISHING AN EFFECTIVE DATE. WONDERFUL. THANK YOU SO MUCH. ALL RIGHT. YES, I HATE TO INTERRUPT, BUT I GUESS I'LL ASK THE CITY ATTORNEY THE WAY SHE READ IT. SHE DIDN'T SAY WHICH SCENARIO. [01:20:01] SO SHOULD THAT BE ADDED OR IS THAT NOT NECESSARY? THE RECORD CLARIFIES THAT THE MOTION WAS MADE TO APPROVE THE SCENARIO THREE B AND THAT THAT'S GOING TO BE INCORPORATED REGARDLESS. SO THAT'S NOT A PROBLEM. THANK YOU. AND I APOLOGIZE FOR THE INTERRUPTION. NO, IT'S A GOOD QUESTION. THANK YOU. THANK YOU. ALL RIGHT. SO I AM ADJOURNING THE SPECIAL MEETING. AND CALLING TO ORDER THE WORK SESSION. [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).] JUST A NOTICE TO THE PUBLIC THAT 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 ANY ITEM LISTED ON THE AGENDA. AND FIRST, I'M GOING TO CALL FOR PUBLIC PARTICIPATION. IF THERE'S PUBLIC PARTICIPATION ON ANY ITEM THAT IS NOT INCLUDED ON TONIGHT'S AGENDA. MAYOR, WE DO NOT HAVE ANY TONIGHT. THANK YOU SO MUCH. ITEM NUMBER THREE REVIEW OF DRAFT AGENDA FOR THE FEBRUARY 21ST, 2023 CITY COUNCIL MEETING. DO WE HAVE ANY COMMENTS OR QUESTIONS FROM COUNCIL ON THIS ITEM? DOES STAFF HAVE ANYTHING THAT THEY'D LIKE TO POINT OUT. OKAY. SO WE'RE GOING TO MOVE DOWN TO ITEM NUMBER FOUR CITY MANAGER REPORT. [4. City Manager Report Information Only] THANK YOU, MAYOR. VICE MAYOR AND COUNCIL. I'LL BE BRIEF. APPENDED TO MY REPORT AT THIS TIME IS OUR UPDATE FROM PROSE. AND SO WE WILL HAVE THAT UPDATE PROVIDED TO YOU AFTER I TOUCH ON JUST A FEW ITEMS IN MY REPORT. AS IS TYPICALLY THE CASE, I DON'T GO THROUGH EVERY ITEM IS THERE FOR YOUR READING ENJOYMENT, AND I JUST CHOOSE TO HIGHLIGHT A FEW THINGS. IN THE COURSE OF THIS, I WOULD LIKE TO MAKE AN INTRODUCTION THE FORMAL INTRODUCTION OF OUR NEW WATER SERVICES DIRECTOR, BUT I'LL BE GETTING TO THAT IN JUST A MINUTE. ON THE FRONT END, IN ORDER AS IT IS IN THE REPORT, A COMMENT OUT OF THE PUBLIC WORKS UPDATE, WE TAKE NOTE OF ALL THE WORK THAT HAS BEEN DONE ON THE HEAVY THE HEAVY WORK THAT'S BEEN DONE ON FLEET THROUGH THIS WINTER. OBVIOUSLY THE FLEET EQUIPMENT HAS BEEN WELL USED AND IT'S BEING WELL USED AS WE SPEAK. MAJOR WORK HAS INCLUDED TWO MAJOR HEAVY PLOW FRAMES WELDED TO MAJOR REPAIRS ON HEAVY PLOW TRUCKS. TWO MOTOR GRADERS REPAIRED THREE LIGHT DUTY SNOW REMOVAL, PIECES OF EQUIPMENT SERVICED TO FRONT LINE FIRE ENGINES BEING REPAIRED ALONG WITH NINE SOLID WASTE, REFUSE TRUCKS BEING REPAIRED AND FOUR LIGHT DUTY PICKUPS BEING REPAIRED. I THINK WITH THAT WE WOULD LIKE TO EXTEND OUR THANKS AND GRATITUDE TO THE FLEET CREW FOR KEEPING OUR MANY PIECES OF EQUIPMENT IN OPERATION THIS WINTER. THAT HAS BEEN QUITE A DEMAND. SO THANK YOU. ALSO OF NOTE THE BY PUBLIC WORKS, THE REPLACEMENT OF THE LIGHTS AT THE JAY LIVELY ICE ARENA WITH LED FIXTURES VERY POSITIVE. MOVING ON TO POLICE DEPARTMENT, I'D LIKE TO FOCUS ON THE AWARDS AND PROMOTION CEREMONY THAT WAS HELD ON FEBRUARY 9TH. SENIOR DEPUTY CITY MANAGER ANDERSON AND I ATTENDED. IT WAS VERY WELL ATTENDED BY MANY OF NOTE THE PROMOTIONAL OATH WAS GIVEN BY THE HONORABLE BRANT HARRIS. I'M NOT GOING TO SPEAK TO ALL THE PROMOTIONS, BUT WE'D LIKE TO COVER A FEW OF THE AWARDS THAT WERE GIVEN. AND YOU HAVE NICE PHOTOS AND WRITE UP WRITE UPS IN YOUR IN THE REPORT. MARIA, 15, WAS AWARDED THE 2022 VOLUNTEER OF THE YEAR. THAT WAS VERY TOUCHING. TAMMY TRUMAN WAS AWARDED THE 2022 VALERIE HERNANDEZ EXCELLENCE AWARD. CONGRATULATIONS TO TAMMY. OFFICER CHRIS WESLEY WAS RECOGNIZED AS THE 2022 FLAGSTAFF PD OFFICER OF THE YEAR AND SOME NICE NARRATIVE WITH HIM ABOUT HIM AND HIS ASCENSION WITHIN THE DEPARTMENT. AND FINALLY, OFFICER BRIAN SMITH. HART WAS RECOGNIZED BY THE FLAGSTAFF LAW ENFORCEMENT ASSOCIATION AS OFFICER OF THE YEAR. AND AGAIN, SOME NICE PHOTOS AND A NICE WRITE UP. [01:25:02] THESE ARE ALL VERY PRESTIGIOUS AWARDS AND GLAD TO TOUCH ON THEM IN THIS REPORT. MOVING ON TO OUR FIRE DEPARTMENT. MEMBERS OF THE DEPARTMENT ON OUR GUARD WENT TO PHENIX TO BE A PART OF THE ANNUAL 2023 PROFESSIONAL FIREFIGHTERS OF ARIZONA MEMORIAL. IT'S GREAT TO SEE FLAGSTAFF SO WELL REPRESENTED. AND THEN SOMETHING TO NOTE. THE FIRE DEPARTMENT PARTNERED WITH THE COCONINO COUNTY SHERIFF'S OFFICE SEARCH AND RESCUE TEAM IN THE USE OF THEIR SNOW CAT TO RESPOND TO A FALL INJURY DURING THE LAST SEVERE SNOWSTORM. DID SO SUCCESSFULLY. SO GREAT TO SEE THE TWO ENTITIES PARTNERING UP AND PUTTING RESOURCES TOGETHER TO THAT RESULTED IN A SUCCESSFUL RECOVERY. SO PROPS TO THE ENTIRE TEAM. JESS MAYOR IS RETIRING AFTER 20 YEARS OF SERVICE TO THE CITY. CONGRATULATIONS. JUST THANK YOU FOR YOUR SERVICE. MORE ON RECRUITMENTS AT THIS POINT. I'D LIKE TO TALK A LITTLE BIT ABOUT SHANNON JONES, OUR NEW WATER SERVICES DIRECTOR. HE OFFICIALLY STARTED A WEEK AGO, MONDAY, FEBRUARY 6TH, SUCCESSFULLY COMPLETED HIS ORIENTATION AND IS CURRENTLY GOING THROUGH A VERY WELL ORCHESTRATED ONBOARDING PROGRAM. THANK YOU, SHANNON ANDERSEN AND OTHERS FOR HELPING WITH THAT ONBOARDING PROGRAM. I WANT TO NOTE THAT ON WEDNESDAY OF LAST WEEK, FEBRUARY 8TH, WE DID FORMALLY INTRODUCE HIM TO THE ENTIRE WATER SERVICES STAFF AND ALSO AT THAT TIME, AND IT WAS A VERY NICE LUNCHEON EVENT THAT WAS ORCHESTRATED IN PART BY COUNCIL MEMBER SWEET. THANK YOU SO MUCH, COUNCIL MEMBER SWEET, FOR YOUR ASSISTANCE IN THAT AND ALSO YOUR CONTRIBUTIONS TO THE DESSERT TABLE. BUT WE HAD A NICE LUNCHEON AT WATER SERVICES. WE RECOGNIZED OUTGOING BRAD HILL ONCE AGAIN AND THANKED HIM FOR HIS CONSULTATION SERVICES WITH THE CITY. AND WE ALSO RECOGNIZED OUTGOING JIM HUGO, WHO IS OFF TO THE ISLANDS NOW FOR A NEW CHAPTER IN HIS CAREER. HE WILL ALSO BE ASSISTING UNDER A CONSULTATION ARRANGEMENT. SO WE GET TO ENJOY THE CONTINUED EXPERTISE OF THOSE TWO INDIVIDUALS TO HELP US IN THIS TRANSITION. BUT ON TO OUR NEW WATER SERVICES DIRECTOR, SHANNON JONES. HE'S WITH US TONIGHT. HE COMES TO US FROM SANTA FE, NEW MEXICO. HE WAS RECRUITED SUCCESSFULLY. YOU MIGHT HAVE SEEN HIM IN A MEET AND GREET. YOU PROBABLY HAVE SEEN HIM IN MANY MEETINGS OF LATE. HE IS JUMPING INTO THE DEEP END SINCE WE'RE TALKING ABOUT WATER SERVICES. SO WE'RE GRATEFUL TO HAVE HIM. I'D LIKE TO INVITE HIM UP TO THE PODIUM TO SHARE A LITTLE BIT ABOUT HIMSELF AND SHANNON. WE'RE GRATEFUL AND THANK YOU FOR BEING WITH US. THANK YOU, MAYOR, VICE MAYOR, COUNCIL MEMBERS, THANK YOU FOR ALLOWING ME A COUPLE OF MINUTES AGAIN FOR A FORMAL INTRODUCTION. I AM EXCITED THAT WE ARE CURRENTLY HERE AND AND AGAIN, WE'RE TAKING IT ALL IN. I'D LIKE TO SEND OUR GRATITUDE TO THE ADMINISTRATION AND THE DIRECTORS THAT HAVE BEEN VERY WELCOMING TO THE WATER SERVICE TEAM THAT I'VE BEEN MEETING WITH. THEY ARE VERY IMPRESSIVE AND I'M EXCITED ABOUT THE TEAM AND WHAT THAT LOOKS LIKE GOING FORWARD. AGAIN, JUST BRIEFLY. YES. SO I. I DID RETIRE FROM THE CITY OF SANTA FE PUBLIC UTILITIES. AROUND THAT SAME TRANSITION, I WAS APPROACHED BY THE CITY OF FLAGSTAFF AND WAS INTRIGUED THROUGH SEVERAL MONTHS OF CONVERSATION, A FEW VISITS. I THINK WE'VE FOUND A GOOD CONNECTION AND IN A BRIGHT FUTURE GOING FORWARD. AND AGAIN, I JUST REALLY WANT TO MAKE MYSELF AVAILABLE FOR QUESTIONS TONIGHT AND GOING FORWARD. I LOOK FORWARD TO WORKING WITH THE CITY OF FLAGSTAFF IN THEIR TEAM, ALONG WITH THE GOVERNING BODY. AND I REALLY SERVED IN THE COMMUNITY AND WHAT THAT LOOKS LIKE. SO THANK YOU. THANK YOU. AND TAKE A MOMENT TO LOOK UP AT ALL THE SCREENS AT YOUR FACE, SMILING DOWN AT YOU. WELCOME. THANK YOU. THANK YOU, SHANNON. IT IS GREAT TO HAVE YOU HERE. COUNSEL, MY LAST COMMENT AND THEN MAYBE WE CAN HEAR FROM OUR WONDERFUL PROS DIVISION. I WANTED TO THANK COUNCIL AND THE STAFF FOR THE SECOND BUDGET RETREAT, WHICH WAS ONLY TWO WEEKS AFTER THE FIRST BUDGET RETREAT. JANUARY AND FEBRUARY HAVE BEEN A HEAVY LIFT FOR THIS NEW MAYOR AND COUNCIL. [01:30:04] AND WE SO MUCH APPRECIATE YOUR ENGAGEMENT, FRANKLY. AND IT WAS TRUE ENGAGEMENT THAT THESE RETREATS ARE DESIGNED TO BE AN EXCHANGE OF INFORMATION AND IDEAS AND THOUGHTS AND PERSPECTIVES. AND I THINK WE CHECKED ALL THOSE BOXES. SO IT WAS A VERY SUCCESSFUL RETREAT. WE'RE ALREADY PLANNING FOR THE APRIL RETREATS. THERE'S NO LETTING UP ON THIS. I KNOW HEIDI DAIRY BERRY AND HER TEAM ARE ALREADY BUSY IN THAT REGARD. SO I JUST WANTED TO THANK YOU FOR THAT. I THINK AT THIS POINT, UNLESS YOU HAVE QUESTIONS FROM ME, I'D LOVE TO TURN IT OVER TO REBECCA TO HAVE HER TELL YOU WHAT'S GOING ON WITH THE PROS DIVISION. HELLO, REBECCA. HELLO. GOOD EVENING, MAYOR AND COUNCIL. CAN YOU HEAR ME OKAY? AND I WILL PULL UP OUR MONTHLY REPORT HERE. CAN YOU SEE THAT? OKAY. YES. THANK YOU. ALL RIGHT. WELL, FIRST, WE WANT TO RECOGNIZE TWO OF OUR OWN THAT WERE RECENTLY PROMOTED TO PRETTY HIGH POSITIONS. THIS IS BOTH OF THESE GENTLEMEN WERE PROMOTED TO MANAGER POSITIONS. SO THEY'RE HELPING TO FULFILL THE REST OF OUR LEADERSHIP TEAM WITHIN PROSE. SO ON THE RIGHT IS GENO LEONI. IT'S BOTH OF THESE ARE INTERNAL PROMOTIONS, WHICH IS SUPER EXCITING. GENO HAS BEEN WITH US FOR ABOUT 16 YEARS AND TYRONE ON THE LEFT IS OUR NEW RECREATION MANAGER. HE'S BEEN WITH THE CITY A WHOPPING 23 YEARS AND SO SUPER EXCITED TO HAVE THEIR EXPERTISE COME FORWARD AND THEY BOTH HIT THE GROUND RUNNING IN FULL STEAM AND IT'S BEEN EXCITING. SO PLEASE, IF YOU SEE THEM OUT AND ABOUT, GIVE THEM SOME CONGRATULATIONS. PARKS IS ALL ABOUT SNOW. NO SURPRISE. WE WANTED TO PROVIDE A FEW PICTURES SO THAT YOU COULD SEE THESE PHOTOS. AND REMEMBER, THIS IS A JANUARY REPORT. SO WE'RE A LITTLE A FEW WEEKS BEHIND US. SO THIS IS NOT TODAY'S STORM, BUT FROM THE MARTIN LUTHER KING WEEKEND STORM. THESE ARE SOME OF THE THINGS THAT PROS GETS TO DO WHEN WE'RE OUT DOING SNOW OPERATIONS, A LITTLE DIFFERENT THAN WHAT STREETS OR OTHERS DO. AND WANTED TO GIVE YOU THAT PERSPECTIVE. I PUT IT IN AN EMAIL TONIGHT AND I WILL SAY IT AGAIN HERE. WE WOULD LOVE TO TAKE ANY OF YOU OUT WITH US. I PROMISE NOT TO MAKE YOU A HAND SHOVEL TOO MUCH, MAYBE JUST A BLOCK OR SO, BUT WE'D LOVE TO GET YOU OUT AND SHOW YOU AROUND OUR OUR SNOW OPERATIONS AS WELL. FOR RECREATION. JANUARY IS TYPICALLY ALL ABOUT HEALTH AND WELLNESS AND HELPING OUR COMMUNITY FULFILL THEIR NEW YEAR'S RESOLUTIONS. SO WE TYPICALLY RUN A MEMBERSHIP DRIVE AT THE AQUA PLEX. I DON'T HAVE RESULTS ON THAT QUITE YET, BUT LOOK FOR THAT TO BE IN OUR NEXT REPORT. WE ALSO ARE STARTING OUR SECOND SEASON OF ADULT BASKETBALL. WE TYPICALLY HAVE 2 TO 3 SESSIONS EXCUSE ME, IN THE WINTER, AND WE WOULD LOVE TO HAVE YOU OUT THERE. WE ALSO HAVE VOLLEYBALL GOING ON RIGHT NOW AS WELL. IN OPEN SPACE. WE ARE GROWING THAT TEAM AS WELL. SO THIS MONTH WE WERE ABLE TO WELCOME OUR NEW OPEN SPACE, FULL TIME PERMANENT EMPLOYEE COORDINATOR. WE'RE SUPER EXCITED TO HAVE SYLVIA JOIN US FULL TIME. SHE HAS BEEN WORKING WITH THE PROGRAM ALREADY FOR TWO YEARS AS AN AMERICORPS VISTA, SO IT'S NICE TO BE ABLE TO GET HER ON THE TEAM PERMANENTLY. WE ALSO ARE WELCOMING AT THE END OF JANUARY, EARLY FEBRUARY, WE WELCOMED A ONE YEAR CONTRACTED POSITION. SARAH HILDITCH. YOU WILL SEE HER FACE HOPEFULLY IN THE FEBRUARY REPORT. SHE WILL BE PERFORMING SOME EDUCATION AND OUTREACH FOR THE OPEN SPACE SECTION. SO THAT'S EXCITING. OPEN SPACE LED BY SYLVIA, HAS BEEN DOING SOME FULL EXCUSE ME, SOME FULL MOON HIKES. AND EVEN IN THE SNOW AND COLD TEMPERATURES, WE'VE HAD GREAT PARTICIPATION. AND FINALLY, OUR EVENTS TEAM WRAPPED UP A BUSY DECEMBER IN A BUSY 2023 BY HELPING TO HOST THE [01:35:03] NEW YEAR'S EVE CELEBRATION DOWNTOWN. THIS IS A PARTNERSHIP, OBVIOUSLY, BETWEEN THE WEATHERFORD HOTEL DOWNTOWN BUSINESS ASSOCIATION AND MANY CITY DIVISIONS, INCLUDING OUR EVENT SECTION. WE HELPED TO ORGANIZE THE FIREWORKS AND OF COURSE THE FIRE DEPARTMENT MAKES SURE THAT THEY'RE SAFE. BUT THIS WAS A GREAT CELEBRATION THIS YEAR AND JUST CONTINUES TO GROW. AND MANY THANKS TO THE COORDINATING EFFORTS OF OUR EVENTS TEAM. SO THAT WRAPS SOME GENERAL INFORMATION ABOUT OUR JANUARY REPORT. AND I'D BE HAPPY TO ANSWER ANY QUESTIONS OR LET YOU MOVE ON TO THE REST OF YOUR AGENDA. THANK YOU SO MUCH, REBECCA. COUNCIL, DO WE HAVE ANY QUESTIONS? THANK YOU. ALL RIGHT. AND I AM GOING TO TAKE YOU UP ON THE GOING OUT WITH THE SNOW CREW. IF WE GET ANOTHER BIG STORM. ABSOLUTELY MAYOR. THANK YOU. WE'LL REACH OUT. ALL RIGHT. ANYTHING ELSE, MR. CITY MANAGER? NO, THANK YOU, MAYOR. THANK YOU, COUNCIL. ALL RIGHT, WE ARE MOVING DOWN TO ITEM NUMBER FIVE, OVERVIEW OF HOUSING PROGRAMS AND A TEN YEAR PLAN UPDATE. [5. Overview of Housing Programs and 10-Year Plan Update This agenda item is informational only.] HELLO, SARAH. WELCOME. GOOD EVENING. LATE AFTERNOON, EVENING, MAYOR AND COUNCIL. IT'S MY PLEASURE TO SHARE A PRESENTATION WITH YOU THIS AFTERNOON, GIVING YOU AN OVERVIEW OF OUR HOUSING PROGRAMS AND AN UPDATE IN GENERAL ON A FEW THINGS THAT I HAVE A FEELING THAT YOU'RE CURIOUS ABOUT BECAUSE I CONTINUE TO GET QUESTIONS. SO HERE WE ARE. THANKS FOR SPENDING VALENTINE'S DAY WITH US. AND I WANT TO SAY THE LAST TIME WE WERE IN FRONT OF YOU LAST MONTH FOR CDBG, IT WAS A BIG SNOWSTORM AND WE ENDED UP PRESENTING REMOTELY WHEN WE WERE IN PERSON. SO IF THE DROUGHT CONTINUES, WE WILL SCHEDULE MORE FREQUENT HOUSING UPDATES SO THAT WE CAN GET MORE SNOWSTORMS. I MEAN, IT'S WORKED TWICE NOW, SO MAYBE A THIRD TIME WOULD BE A CHARM. I AM JOINED THIS EVENING BY JUSTINE ACOSTA, WHO IS GOING TO BE RUNNING THE SLIDE SHOW. SO WE'RE HOPING THAT DIVIDING THOSE INTO TWO DIFFERENT SPOTS WILL ELIMINATE ANY DELAYS THAT WE'VE HAD WITH SLIDES BEFORE WE HAVE TESTED IT. THE DELAY IS AT ABOUT ONE SECOND. SO WE THINK THAT THAT'S FAIRLY ACCEPTABLE. SO WE'RE GOING TO MOVE RIGHT ALONG AND INTO THE NEXT SLIDE, WHICH IS ONE I TRY TO START WITH WHENEVER WE'RE TALKING TO ANYONE IN PUBLIC. CHRISTINA, DID YOU HIT IT? YOU KNOW, LOOK, THIS DOESN'T WORK. I'M PREPARED TO SWITCH OUT. I'LL PRESENT FROM HERE THAT MAYBE WHAT WE NEED TO DO. I WILL KEEP TALKING. DO YOU WANT TO SHARE? AND I'LL SHARE MINE. SOUNDS GOOD. SO THANK YOU FOR YOUR PATIENCE. WE TESTED REPEATEDLY. OF COURSE, IT DIDN'T TURN OUT LIKE WE WERE ANTICIPATING. THAT'S HOW IT GOES. AND IF I I HIT PLAY WITHIN IT, COVERED UP WHERE I COULD SHARE. ALL RIGHT, SO THEN DO. SO ON THE NEXT SLIDE ARE SOME COMMON TERMS. THAT YOU WILL HEAR ME COVER ON A REGULAR BASIS, BUT WE DO TRY TO START OUR PRESENTATIONS WITH THESE TERMS SO THAT IF WE SLIP STUFF, IT'S VERY, VERY HARD NOT TO USE ACRONYMS, BUT IF WE SLIP, THESE ARE SOME OF THE THINGS THAT WE SAY WE USUALLY CALL HUD, HUD, THAT ONE WE DON'T SPELL OUT ON A REGULAR BASIS THAT IT IS THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WE SAY CFHA OR FHA INDICATING THE CITY OF FLAGSTAFF HOUSING AUTHORITY AND AMI OR AREA MEDIAN INCOME. THERE'S A WHOLE SLEW OF OTHER ONES THAT WE USE, BUT I THINK IN THIS PRESENTATION THIS ENCAPSULATES THE PIECE. I WILL WORK NOT TO USE THEM IF I DO. THANK YOU FOR YOUR PATIENCE. AND HERE ARE OUR DEFINITIONS. SO HERE'S OUR OVERVIEW. THIS EVENING WE'RE GOING TO DO A BRIEF HOUSING 101 AND THEN AN OVERVIEW OF PROGRAMS THE HOUSING SECTION, THE HOUSING AUTHORITY, THE COMMISSIONS AND [01:40:07] PROGRAMS. I HAVE A TEN YEAR PLAN UPDATE FOR YOU, INCLUDING A DRAFT IMPLEMENTATION PLAN AND PROGRESS REPORT, AND THEN A BOND PROGRAM. BROAD PROGRAMING UPDATE AS WELL. ALL RIGHT, I SHARE THIS, I KNOW SOME OF YOU HAVE SEEN IT A THOUSAND TIMES. THANK YOU FOR BEING PATIENT. WHEN WE WORK TO GET EVERYBODY ON THE SAME PAGE, USING THE SAME LANGUAGE WITH THE SAME UNDERSTANDING SO THAT WHEN WE TALK ABOUT IT, THERE'S NOBODY IN THE ROOM THAT IS WONDERING, WELL, WHAT DOES THAT MEAN? SO AFFORDABLE HOUSING IS BORING. IT'S MATH. IT'S A MATH EQUATION IS WHEN A HOUSEHOLD PAYS NO MORE THAN 30% OF ITS ANNUAL GROSS, NOT NET GROSS INCOME ON HOUSING AND HOUSING RELATED EXPENSES. HOUSING RELATED EXPENSES ARE THINGS LIKE UTILITIES OR HOA FEES OR MORTGAGE INSURANCE, THAT TYPE OF THING. SO THAT 30% IS INTENDED TO COVER HOUSING RELATED EXPENSES AS WELL. TYPICALLY, WHEN WE'RE WORKING WITH A HUD DEFINITION, THE DISCRETIONARY UTILITIES, IF YOU WILL, OF ENTERTAINMENT PURPOSES SUCH AS CABLE AND OR PHONE ARE NOT NECESSARILY ALWAYS INCLUDED IN THAT HUD CALCULATION, BUT THE STANDARD NECESSARY UTILITIES, ELECTRIC AND OR GAS AND WATER ARE. SO THAT'S THE DEFINITION WE'RE GOING TO FUNCTION FROM. AND THIS IS STRAIGHT OUT OF THE TEN YEAR PLAN, AS WELL AS A COMMON DEFINITION PROVIDED BY HUD. I WANT TO REACQUAINT YOU. IF IT'S BEEN A MOMENT SINCE YOU'VE SEEN OUR FLAGSTAFF'S HOUSING CONTINUUM. WE HAVE LONG REPRESENTED THIS WITH STAIR STEPS, WITH ABSOLUTE HOMELESSNESS SHELTERS AND TRANSITIONAL. OVER HERE ON THE LEFT, MOVING THROUGH THE CONTINUUM UP TO LONG TERM HOMEOWNERSHIP, THE DIVIDING LINE YOU SEE IN THE MIDDLE IS WHERE THAT PUBLIC AND PRIVATE SECTOR INVESTMENT TYPICALLY MEET IN TAX CREDIT HOUSING, WHICH IS MULTIFAMILY HOUSING. AND SO THE THINGS TO THE LEFT ARE THINGS MOST OFTEN YOU CAN SEE FUNDED BY PRIVATE SECTOR INVESTMENT WITH THINGS TO THE I'VE BEEN USING THINGS TO THE RIGHT HAND SIDE FOR PRIVATE SECTOR INVESTMENT. SOMETIMES THINGS CROSS OVER, BUT TYPICALLY THIS IS THE CONTINUUM WE SEE. IT IS NOT A STATIC THING. PEOPLE CAN MOVE UP OR DOWN. THEY CAN MOVE IN EITHER DIRECTION. STEPS CAN BE STEPPED UP, ETC. BUT IN GENERAL, THIS IS WHAT WE'RE TALKING ABOUT WHEN WE TALK ABOUT THE HOUSING CONTINUUM. UM, LET'S TALK ABOUT AREA MEDIAN INCOME OR AMI? AND SO HOUSEHOLDS THAT ARE AT 80% AMI AND BELOW ARE DEFINED BY HUD AS LOW INCOME HOUSEHOLDS. WE USE A FAMILY SIZE OF THREE WHEN WE'RE TALKING ABOUT A NON SPECIFIC HOUSEHOLD RELATED TO AREA MEDIAN INCOME BECAUSE A HOUSEHOLD SIZE OF THREE MOST CLOSELY EQUATES TO THE AVERAGE HOUSEHOLD SIZE. FOR OUR METROPOLITAN STATISTICAL AREA. SO IN FLAGSTAFF, FOR A HOUSEHOLD OF THREE IN THAT HOUSEHOLD MAKES GROSS, EVERYBODY IN THE HOUSEHOLD MAKES LESS THAN $61,850. THEY ARE DEFINED AS LOW INCOME. WE BRING THIS CHART OUT TO THE OTHER DIRECTION BECAUSE WE HAVE ACKNOWLEDGED FOR A LONG TIME IN OUR COMMUNITY THAT OUR HOUSING NEEDS DO NOT STOP AS PEOPLE MOVE PAST THE LOW INCOME DESIGNATION. AND WE HAVE ACTUALLY WE HAVE PROGRAMS THAT SERVE 100 OR 125 AND AN AUTHORIZATION TO SERVE UP TO 150, ALTHOUGH AT THIS MOMENT THERE'S ONLY ONE PROGRAM TOUCHING IN THAT AREA. AND SO WHEN I SAY ARMY OR AREA MEDIAN INCOME, THIS IS WHAT I'M TALKING ABOUT. WE USE THESE INCOME LIMITS FOR ELIGIBILITY FOR ALL OF OUR STATE AND FEDERALLY FUNDED HOUSING PROGRAMS. YOU DON'T MAP IT. THOSE OF YOU THAT ARE NEW AND YOU'RE LOOKING AT IT AND SAYING THAT'S NOT 80% OF THAT. WE ARE A HIGH COST DESIGNATION AREA, MEANING THAT HUD RECOGNIZES THAT WE ARE HOUSING COSTS ARE NOT TYPICAL AND THEREFORE, AS A HIGH COST EXCEPTION AREA, THERE IS A FORMULA THAT IS APPLIED TO OUR AMI PERCENTAGE CALCULATIONS IN ORDER TO TAKE THAT HIGH COST DESIGNATION INTO ACCOUNT. WHEN PUBLISHING AMI, AMI IS PUBLISHED EVERY YEAR USUALLY ABOUT BEGINNING OF MARCH OR SO. [01:45:02] IT'S BEING DELAYED THIS YEAR FOR PANDEMIC REASONS. IN 2020, THEY DID NOT DO THE SAME AMERICAN COMMUNITY SURVEY DATA COLLECTION THAT THESE NUMBERS ARE OFTEN BASED UPON. AND SO THERE'S A LITTLE GLITCH. THERE'S A DIFFERENT WAY THAT THESE ARE BEING ISSUED THIS YEAR, AND THEY'VE DELAYED THAT ISSUANCE BY ABOUT SIX WEEKS. SO WE CONTINUE TO USE THEM, EVEN THOUGH IT IS 2023. WE ARE OBLIGATED TO CONTINUE TO USE THE PREVIOUS ONES UNTIL THE NEW ONES ARE PUBLISHED. AND ISN'T ALL HOUSING AFFORDABLE IF YOU MAKE ENOUGH MONEY? SURE, ABSOLUTELY. AND THAT IS HOUSING THAT IS AFFORDABLE AND THAT IS A MARKET BASED SALE OR RENTAL PRICE. A HOUSEHOLD MAKES ENOUGH MONEY. THEY OBTAIN HOUSING THAT FITS WITHIN THEIR SCOPE, THAT IS HOUSING THAT IS AFFORDABLE, AFFORDABLE HOUSING. FORMALIZED AFFORDABLE HOUSING IS TYPICALLY A TWO PRONG TEST. ONE IS WHAT ARE THE HOUSING COSTS? AND TWO, WHO IS ELIGIBLE TO PURCHASE OR RENT IT? FOR EXAMPLE, WHEN WE TALK ABOUT PUBLIC HOUSING, THAT'S AN INCOME BASED RENT AND WHO IS ELIGIBLE TO PURCHASE OR RENT IT HAS AN AMI DESIGNATION, AREA MEDIAN INCOME DESIGNATION. AND IN AFFORDABLE HOUSING, FORMAL AFFORDABLE HOUSING IS SUBSIDY OR INVESTMENT OF SOME TYPE EXISTS. SOMETIMES THAT'S AN INFORMAL INVESTMENT OR SUBSIDY RATHER THAN HARD CASH. HOWEVER, IT'S IMPORTANT TO RECOGNIZE THAT A SUBSIDY OF SOME TYPE MOST OFTEN EXISTS WHEN WE'RE TALKING ABOUT FORMAL AFFORDABLE HOUSING. FLYING THROUGH THE 101. WE GET THE YES, BUT HOW DO I GET WHAT IT IS? HOW DO YOU DO IT? GIVEN THAT THIS IS A SUPPLY AND DEMAND ISSUE, YOU CAN EITHER HELP ON THE DEMAND SIDE OR THE SUPPLY SIDE. SO ON THE DEMAND SIDE IS TO HELP MAKE EXISTING HOUSING STOCK AFFORDABLE TO THE COMMUNITY. AND THIS IS MOST OFTEN IN THE FORM OF LOWERING THE MONTHLY COSTS TO AN ASSISTED HOUSEHOLD. IN CATEGORIES SUCH AS THIS, YOU WOULD SEE ON THE OWNERSHIP SIDE THINGS LIKE DOWNPAYMENT AND CLOSING COSTS, ASSISTANCE PROGRAMS OR OUR VOUCHER PROGRAMS. THE HOUSING AUTHORITY OPERATES. ON THE SUPPLY SIDE, VERY SIMPLE AID BY DEVELOPING OR REHABILITATING UNITS. EXAMPLES ON THIS SIDE WOULD BE ANY OF THE LOW INCOME HOUSING TAX CREDIT DEVELOPMENTS, THE HOUSING REHABILITATION PROGRAM. THAT'S THE KEEPING AN AFFORDABLE UNIT SAFE AND SANITARY SO IT CAN REMAIN AFFORDABLE FOR THE HOUSEHOLD LIVING WITHIN IT, AND THINGS LIKE OUR PUBLIC HOUSING OR WHEN WE HAVE A DEVELOPER MAKE A COMMITMENT TO CREATE ADDITIONAL UNITS AFFORDABLE TO OUR COMMUNITY. THOSE ARE ALL SUPPLY SIDE EXAMPLES. ESPECIALLY EARLY IN EARLY IN NEW COUNCIL TERMS, WE HAVE WHAT I HAVE DUBBED OUR TWEEN CHALLENGE, WHERE WE'RE TOO BIG TO BE SMALL AND WE'RE TOO SMALL TO BE BIG. SO BY FEDERAL DEFINITION, SINCE WE ARE A COMMUNITY WITH A POPULATION WITHIN OUR CITY LIMITS, IT DOESN'T TAKE INTO ACCOUNT OUR FMPO BOUNDARY OF OVER 55,000 PEOPLE. WE ARE DESIGNATED AS A METROPOLITAN COMMUNITY. SO THAT'S GREAT. AND THAT PUTS US IN THE LEVEL OF RECEIVING CDBG ENTITLEMENT FUNDS. CHRISTINE WAS HERE. CHRISTINE PAVLIK WAS PRESENTING IN JANUARY ABOUT THOSE CDBG FUNDS. AND SO THAT'S GREAT. THAT MONEY COMES DIRECTLY TO US. HOWEVER, WE'RE TOO SMALL TO BE BIG. SO IN ARIZONA, WE ARE CONSIDERED RURAL BY THE ARIZONA DEPARTMENT OF HOUSING, BY DEFINITION ARE ONLY URBAN COMMUNITIES. URBAN COMMUNITIES, URBAN COUNTIES IN ARIZONA ARE PIMA AND MARICOPA. EVERYTHING IN THE BALANCE OF THE STATE THAT IS NOT PIMA AND COPA IS CONSIDERED TO BE RURAL. SO THIS PUTS US IN A WEIRD SPOT WHERE WE'RE ELIGIBLE FOR ONE ENTITLEMENT FUNDING SOURCE THROUGH HUD, BUT NOT OTHERS. SO HOME FUNDS, HOME FUNDS, YOU'LL SEE THE ACRONYM ALWAYS CAPITALIZED. I DON'T WANT TO SAY HOW LONG I WORKED IN THIS INDUSTRY BEFORE I FINALLY DID ENOUGH RESEARCH TO FIGURE OUT THAT IT DOESN'T STAND FOR ANYTHING. I'M SURE IT HAD TO STAND FOR SOMETHING BECAUSE IT'S ALWAYS CAPITALIZED. IT DOESN'T STAND FOR ANYTHING. IT'S JUST HOME, ALWAYS CAPITALIZED. WE ARE TOO SMALL TO RECEIVE HOME ENTITLEMENT FUNDS, AND IF WE TRY TO GATHER ENOUGH POPULATION AND TO HIT THAT POPULATION THRESHOLD, WE WOULD BE EXECUTING INTERGOVERNMENTAL AGREEMENTS WITH OVER 17 DIFFERENT LOCAL GOVERNMENTS, INCLUDING TRIBES IN THE NORTHERN ARIZONA [01:50:04] REGION. AND THEN OUR FUNDING AMOUNT WOULD BE AROUND 200, $250,000 TO BE SPLIT AMONGST THOSE GROUPS. AND HOME IS EVEN MORE ADMINISTRATIVELY INTENSIVE THAN CDBG. SO WHEN WE TALK TO HUD ABOUT IT, WE'VE BEEN ADVISED THAT WE'RE NOT QUITE AT THOSE THRESHOLDS YET, BUT WE ARE WATCHING IT AS OUR POPULATION GROWS. SO THAT MEANS THAT WE COMPETE FOR THOSE HOME FUNDS WITH THE REST OF RURAL ARIZONA THROUGH COMPETITIVE OFFERS OF FUNDING THROUGH THE ARIZONA. SO THIS PUTS US KIND OF IN THAT CRACK IN THE SIDEWALK WHERE WE HAVE THE ADVANTAGES OF BOTH AND THE DISADVANTAGES OF BOTH. FOR EXAMPLE, WE'RE NOT ELIGIBLE FOR USDA FUNDING WITHIN CITY LIMITS. HOWEVER, WE'RE STILL CONSIDERED RURAL TO THE STATE OF ARIZONA. SO IF YOU EVER HEAR ME TALK ABOUT OUR TWEEN CHALLENGE, THIS IS WHAT I'M TALKING ABOUT, WHERE WE FALL IN THAT SIDEWALK. SIDEWALK CRACK. HOUSING IS LOCATED WITHIN THE COMMUNITY DEVELOPMENT DIVISION. HERE WE HAVE THE MISSION OF THE COMMUNITY DEVELOPMENT VISION. WE BUILD COMMUNITY TOGETHER, PROVIDE SERVICE WITH INTEGRITY AND HONOR, THE DIVERSE HERITAGE OF FLAGSTAFF. MY COUNTERPARTS WITHIN COMMUNITY DEVELOPMENT ARE BUILDING SAFETY. UM. PLANNING AND DEVELOPMENT SERVICES. ALL I COULD THINK OF WAS PLANNING REAL ESTATE AND HOUSING FOR THE FOUR SECTIONS WITHIN COMMUNITY DEVELOPMENT. AND HERE IS A SLIDE I PROMISE TO GO OVER THESE. YOU DON'T HAVE TO ABSORB IT OF OUR OF OUR PROGRAMS WITHIN AND MORE AT THE BOTTOM. WE HAVE STAFF LOCATED IN FOUR DIFFERENT OFFICE LOCATIONS, THE MAIN OFFICE FOR ALL HOUSING PROGRAMS. BOTH SIDES OF OUR HOUSE IS LOCATED AT SILER HOMES, WHICH IS OFF OF FANNING. WE ALSO HAVE OFFICES AT BRANNEN AND CLARK HOMES. THOSE ARE MAINLY PROPERTY MANAGEMENT OFFICES, ALTHOUGH RIGHT NOW WE'RE IN OH BACK, BACK, WE'RE IN A STAFFING CHALLENGE AND OUR OFFICE AT BRENNAN HOMES IS NOT OPEN FULL TIME. HOWEVER, WHEN WE ARE MEETING WITH RESIDENTS, WE ARE CONDUCTING ALL OF THOSE MEETINGS ON SITE THERE SO THAT THEY DON'T HAVE TO TRAVEL. WE SIMPLY DO NOT HAVE THE STAFFING AT THE MOMENT. IN YOUR ORDER, KEEP IT OPEN ON. A REGULAR BASIS. SO RESIDENTS WERE PROVIDED WITH NOTICES. THEY WERE PROVIDED WITH HOW TO STAY IN TOUCH WITH THEIR HOUSING SPECIALIST, ALL OF THE PHONE NUMBERS AND EMAILS THAT WE CAN PROVIDE TO GET US THROUGH THIS HIRING PROCESS WHERE PERHAPS WE WILL HAVE STAFF. WELL, THE GOAL IS AT THE END OF THIS, WE WILL HAVE STAFF THAT CAN AGAIN STAFF THAT OFFICE. WE DO HAVE A MANAGEMENT OFFICE AT CLARK HOMES AND THEN OUR HOUSING SECTION SIDE SEPARATE FROM HOUSING AUTHORITY SIDE, THEIR OFFICES IN THE WATER SERVICES BUILDING. AND THAT OFFICE IS NOT OPEN TO THE PUBLIC. BORDER SERVICES BUILDINGS ON WALGREENS STREET. SO HERE'S OUR ORG CHART. I DON'T EXPECT YOU TO ABSORB IT, BUT JUST RATHER LET ME LET ME UTILIZE IT AS A TOOL TO POINT THINGS OUT. I KNOW THAT IT IS NOT THE PREFERRED FORMAT OF OUR CITY MANAGER WITH THE FLOW. PLEASE KNOW THAT WE CONDUCT OURSELVES WITH FLOW. I'M NOT A SUPER HIERARCHICAL INDIVIDUAL, BUT THE PLEASURE OF WORKING WITH, I'M SURE THAT'S NOT NEWS. SO AT THE TOP WE HAVE CITY MANAGER GREG AND MY BOSS, COMMUNITY DEVELOPMENT DIRECTOR DAN FOLKE, WHO I BELIEVE IS IN THE AUDIENCE IN CHAMBERS RIGHT NOW. AND THEN HERE IS OUR HOUSING GROUP. WE ARE A TOTAL OF 30 WHEN WE'RE FULLY STAFFED. OVER ON THE LEFT HAND SIDE, WE HAVE THE HOUSING SECTION. THERE ARE SIX STAFF IN HERE, 17% GRANT FUNDED. THIS ASSISTANT HOUSING DIRECTOR POSITION IS JUST PLEASED WAVED AT YOU A MOMENT AGO. AND THEN WE HAVE A HOUSING ANALYST, A HOUSING PROGRAM MANAGER, HOUSING GRANTS, AN ADMINISTRATOR AND A SPECIALIST. AND YOU'RE GOING TO SEE THE FRUITS OF SOME OF THEIR WORK IN JUST A LITTLE BIT. ON THE OTHER SIDE OF THE REST OF IT, ON THE RIGHT HAND SIDE IS HOUSING AUTHORITY. THERE'S 24 STAFF. IT'S 99% GRANT FUNDED WITH ALL OF THOSE FUNDS COMING FROM HUD IN ORDER TO OPERATE BOTH THE PUBLIC HOUSING AND OUR ASSORTED VOUCHER PROGRAMS. WE HAVE AN ASSISTANT HOUSING DIRECTOR HERE, ALONG WITH A GENTLEMAN NAMED CALEB ALEXANDER, WHO I HAVE GIVEN A PASS ON ATTENDING THIS EVENING BASED ON THE FACT THAT HE'S FILLING IN FOR OUR VACANT STAFF POSITIONS. AND I SAID, GOT A LOT. I'LL JUST DO THIS ONE. WE'RE GOOD. SO HE OVERSEES BOTH OUR VOUCHER PROGRAMS AND OUR PUBLIC HOUSING PROGRAM. [01:55:04] WITH THE ASSISTANCE OF LEAD HOUSING SPECIALISTS ON EACH SIDE, YOU'LL SEE DOWN HERE THE HOUSING NAVIGATORS KIND OF GRAYED OUT WITH A HELPFUL BACKGROUND IS THAT WE DO HAVE A HOUSING NAVIGATOR. IT'S FUNDED ON A ONE TIME BASIS. WE'RE HOPING TO MAKE THAT PERMANENT THROUGH THE BUDGET PROCESS. HOWEVER, WE ARE GOING THROUGH ALL THE APPROPRIATE CHANNELS AND THAT DETERMINATION ON RECOMMENDATIONS, OF COURSE, IS LEFT UP TO THE BUDGET TEAM. WE DO HAVE OUR OWN FINANCE FOLKS WITHIN HOUSING. WE'RE ON A WITHIN HOUSING AUTHORITY. WE'RE IN A SEPARATE FINANCIAL SYSTEM. WE TRIED YEARS AND YEARS AGO, AND IF RICK TADDER IS IN THE ROOM HE'LL NOD HIS HEAD DRAMATICALLY TO TRY TO TO GET HOUSING AUTHORITY FUNCTIONS OVER ONTO THE CITY'S FINANCE SYSTEM. AND WHAT OUR FINANCE AND RENTAL SOFTWARE DOES CALCULATES RENTS, IT TAKES A NUMBER OF THINGS INTO CONSIDERATION THAT ENTERPRISE SIMPLY IS NOT SET UP TO DO. AND SO WE RUN SIDE BY SIDE FINANCE SYSTEMS. IT'S AWESOME 98% OF THE TIME. BUDGET IS WHEN WE'RE REALLY TRYING TO MATCH THINGS UP. BUT WE DO HAVE OUR OWN HOUSING MANAGER OVER FINANCE WITH THE MAINTENANCE TEAM. I'LL INTRODUCE YOU TO THEM IN A MOMENT. AND THEN A HOUSING MANAGER IN CHARGE OF COMPLIANCE AND REPORTING WITH MILLIONS AND MILLIONS OF DOLLARS OF FEDERAL FUNDS. AND THE REPORTING REQUIREMENTS ARE QUITE EXTENSIVE AND SEEMINGLY DIFFERENT FOR EVERY PROGRAM. SO I'M GOING TO GIVE YOU A QUICK OVERVIEW OF OUR HOUSING COMMISSION. SO WE ACTUALLY DO HAVE TO WE HAVE THE HOUSING AUTHORITY BOARD OF COMMISSIONERS AND THE HOUSING COMMISSION. WELL, WHY DO WE HAVE TO AND WHAT'S THE DIFFERENCE? SO THE HOUSING AUTHORITY BOARD WAS ACTUALLY CREATED IN 1942, AND THE HOUSING AUTHORITY WAS CREATED A LONG TIME AGO. IT'S FEDERALLY REQUIRED THAT WE HAVE THIS BOARD AND IT IS REQUIRED THAT WE HAVE PUBLIC HOUSING RESIDENTS OR PARTICIPANTS IN VOUCHER PROGRAM MEMBERS, OR AT A MINIMUM, IF WE'RE UNABLE TO GET THOSE REPRESENTATIVES OF OUT OF OUR TARGETED POPULATIONS, IT'S MADE UP OF SIX MEMBERS, PLUS THE MAYOR AND THE MEMBERS TO THIS BOARD ARE APPOINTED BY THE MAYOR FOR ARIZONA STATE LAW. ARIZONA STATE LAW SAYS THAT EITHER THE CITY COUNCIL CAN BE THE HOUSING AUTHORITY BOARD WITH THE ADDITION OF TARGETED POPULATION REPRESENTATIVES OR THE MAYOR APPOINTS THE MEMBERS TO SERVE ON THAT BOARD. HOUSING AUTHORITIES IN ARIZONA ARE DIFFERENT THAN HOUSING AUTHORITIES IN OTHER STATES THAT YOU MAY BE FAMILIAR WITH BECAUSE STATE LAW CREATES THEM AS INSTRUMENTALITIES OF LOCAL GOVERNMENT RATHER THAN FULL SEPARATE AUTHORITIES. SO WHEN YOU'RE READING ABOUT HOUSING AUTHORITIES IN OTHER STATES, YOU'RE LIKE, HA HA, IT DOESN'T SEEM LIKE OURS, RIGHT? IT'S NOT. DIFFERENT IN ARIZONA. THE HOUSING AUTHORITY BOARD HAS SELECTED POWERS DELEGATED BY CITY COUNCIL REGARDING ONLY PUBLIC HOUSING AND VOUCHER PROGRAMS. THAT'S THEIR SOLE PURVIEW IS HOUSING AUTHORITY RESOURCES, AND THEY OVERSEE ALL HOUSING AUTHORITY PROGRAMS AND FUNDING. HOUSING COMMISSION IS NEW. CREATED BY CITY COUNCIL IN 2019. IT HAS 13 MEMBERS AND WE HAVE A CROSSOVER MEMBER. WHEN WE WERE LOOKING AT THE COUNCIL DIRECTION TO CREATE A NEW HOUSING COMMISSION. IT WAS IMPORTANT TO ME THAT THE COMMUNICATION BETWEEN THE TWO ENTITIES, THE HOUSING AUTHORITY BOARD AND THE HOUSING COMMISSION, NOT BE LOST, THAT THEY STAY INFORMED OF WHAT THE OTHER IS DOING, BECAUSE WHILE THEY HAVE DIFFERENT PURVIEWS, THEY ARE WORKING ON THE SAME OVERARCHING TOPIC. AND SO THERE IS ONE MEMBER OF THE HOUSING AUTHORITY BOARD ON THE HOUSING COMMISSION. AND OF COURSE THE OPPOSITE IS TRUE AS A MEMBER OF THE HOUSING COMMISSION ON THE HOUSING AUTHORITY BOARD. IT'S THE SAME PERSON IN EVERY HOUSING COMMISSION AND HOUSING AUTHORITY BOARD AGENDA HAS A REPORT OUT BY THIS INDIVIDUAL TO MAKE SURE THAT WE'RE COORDINATING THAT INFORMATION. SO THE HOUSING COMMISSION SERVES AS AN ADVISORY BOARD. THE CITY COUNCIL MAKES RECOMMENDATIONS WITH RESPECT TO POLICIES AND NEEDS AND PROGRAMS, FURNISHES COUNCIL WITH INFORMATION, ETC. SO THE HOUSING COMMISSION'S PURVIEW IS REALLY OUR LOCAL DYNAMICS AND SOME INPUT, ETC. INTO THINGS LIKE CDBG, BUT IT'S MORE ON AN INFORMED BASIS THERE AS CITY COUNCIL REMAINS THE ULTIMATE. ULTIMATE AUTHORITY, THE ONE WITH THE ULTIMATE RESPONSIBILITY TO APPROVE FORMALLY APPROVE THINGS. SO THIS IS A RECOMMENDING BODY. THE HOUSING AUTHORITY BOARD HAS SOME LIMITED POWERS RELATED TO DOCUMENTS WE'RE REQUIRED TO CREATE BY HUD. SO THOSE ARE THAT'S A QUICK OVERVIEW OF STAFF, LOCATION, ETC. [02:00:05] AND I'D LIKE TO PAUSE BEFORE MOVING ON AND SEE IF THERE'S ANY QUESTIONS AT THIS POINT IN TIME. CANCEL ANY QUESTIONS. ALL RIGHT. I DON'T THINK WE HAVE ANY. OH. I'M. I'M SORRY. THIS IS COUNCILMEMBER HARRIS. I COULDN'T GET TO MY. THING. GO AHEAD. ALL RIGHT. THANK YOU. I HAVE A COUPLE OF QUESTIONS FOR THE HOUSING AUTHORITY BOARD. WHAT EXACTLY ARE THEY RESPONSIBLE FOR? WHAT CAN THEY DO? THANK YOU FOR THE QUESTION. THE HOUSING AUTHORITY BOARD. CAN APPROVE DOCUMENTS. WE ARE REQUIRED BY HUD TO PRODUCE DOCUMENTS AND OR POLICY POLICIES ON A LIMITED BASIS. IF WE ARE MAKING A PROGRAMMATIC CHANGE, IT WOULD GO TO THE HOUSING AUTHORITY BOARD AND THEN TO CITY COUNCIL. SO THEY ARE LARGELY. IF I SEE THEY'RE LARGELY PROCEDURAL, THAT REALLY DEGRADES THEIR TRUE VALUE BECAUSE THEY DO REVIEW THINGS. HOUSING AUTHORITIES ARE REQUIRED TO CREATE AN ANNUAL PLAN, AND IT'S NOTHING LIKE THE ANNUAL PLAN WE'VE SEEN FOR CDBG. IT IS ABOUT FOUR PAGES OF EXCEL SPREADSHEET THAT IS VERY HUD DICTATED AND IT BASICALLY LAYS OUT HOW WE'RE GOING TO CONTINUE DOING WHAT WE'RE ALREADY DOING WITH THE MONEY WE'RE ALREADY RECEIVING. AND SO IT'S NOT A DYNAMIC DOCUMENT. IT DOESN'T CHANGE VERY OFTEN. AND THE HOUSING AUTHORITY BOARD HAS THE ABILITY TO APPROVE THAT AND APPROVE IT SUBMISSION TO HUD. AS LONG AS NOTHING IS CHANGING WITHIN SOME PARAMETERS THAT ARE ESTABLISHED. ITS INTENT IS TO TAKE CARE OF THE THINGS THAT ARE PROCEDURAL PROCEDURALLY REQUIRED. IF THERE IS A MAJOR CHANGE, FOR EXAMPLE, A FEW YEARS AGO WE PUT INTO PLACE A DEPOSIT PROGRAM. A DEPOSIT LOAN PROGRAM FOR OUR VOUCHER CLIENTS. THAT WAS A MAJOR PROGRAMMATIC CHANGE. IT WENT TO THE BOARD AND THEN IT ULTIMATELY CAME TO CITY COUNCIL FOR APPROVAL BECAUSE THAT IS OUTSIDE OF WHAT THE HOUSING AUTHORITY STANDARDLY HAS DONE. SO THAT'S A THAT'S A GOOD EXAMPLE OF WHEN SOMETHING WOULD ALSO COME TO CITY COUNCIL. BUT IF WE'RE PROCESSING THE DOCUMENTS WERE REQUIRED TO PROCESS EVERY YEAR, THOSE GO BEFORE THE HOUSING AUTHORITY BOARD. IS THAT YOUR QUESTION? WELL, NOT REALLY, BUT. SORRY, I'M JUST BEING HONEST. SO LET ME DO THIS SO AS NOT TO HOLD UP THE REST OF THE MEETING. I WILL REACH OUT TO YOU AND SCHEDULE AN APPOINTMENT SO YOU CAN EXPLAIN FURTHER TO ME WITHOUT US HOLDING UP THE MEETING. DOES THAT WORK? THAT WORKS. I'D BE MORE THAN HAPPY TO DO SO. PERFECT. THANK YOU. ALL RIGHT. THANK YOU. THANK YOU, COUNCIL MEMBER. RIGHT. WILL ROLL FORWARD. I'M GOING TO NEXT DESCRIBE THE PROGRAMS OPERATED BY THE CITY FLEX HOUSING AUTHORITY. WE HAVE PUBLIC HOUSING MANAGEMENT OF HOMES, VOUCHER PROGRAMS, AND THEN ALSO COMMUNITY REFERRAL AND INFORMATION. I DO NOT HAVE ANOTHER SLIDE IN HERE ON COMMUNITY REFERRAL INFORMATION FROM THE HOUSING AUTHORITY. MAIN OFFICE IS OUR MAIN OFFICE FOR HOUSING. IT'S LOCATED ON THE EAST SIDE OFF OF FANNING. WE SEE A LOT OF WALK IN TRAFFIC FOR ALL KINDS OF THINGS, EVERYTHING FROM SOMEONE IN ABSOLUTE CRISIS TO SOMEONE JUST ASKING QUESTIONS ABOUT PROGRAMS AND SOMETIMES JUST RANDOM THINGS BECAUSE WE'RE THERE AND ACCESSIBLE. AND SO WE DO A TON OF REFERRAL TO OUR COMMUNITY PARTNERS AND PROVIDING INFORMATION. THE STAFF HAS BEEN PHENOMENAL IN PAYING ATTENTION TO TO THE QUESTIONS WE'RE GETTING AND THEN CHANGING OUR MATERIALS TO MAKE SURE THAT THE MATERIALS ARE ANSWERING, THE MATERIALS ARE ANSWERING THE QUESTIONS WE'RE GETTING MOST OFTEN. AND THAT'S SOMETHING I'VE BEEN REALLY APPRECIATIVE OF, IS THEM ADAPTING THINGS TO BE MORE RESPONSIVE TO THE COMMUNITY. WE CHANGED OUR MATERIALS DURING THE PANDEMIC. WE CHANGED OUR MATERIALS DURING THE EVICTION MORATORIUM AND FORECLOSURE MORATORIUM. WE CHANGED OUR MATERIALS AS WE EXIT OUT OF THAT SO THAT WE'RE WORKING TO PROVIDE THE MOST CRITICAL INFORMATION, HOWEVER, NOT BEING DUPLICATIVE OF OTHER THINGS WITHIN THE COMMUNITY. IF THERE'S ANOTHER RESOURCE, WE JUST GATHER IT AND THEN HELP AND THEN WE MAKE A TON OF REFERRALS TO OUR FRONT DOOR PROGRAM TO [02:05:06] HOUSING REHAB TO THE COUNTY FOR OTHER NEEDS SUCH AS UTILITY ASSISTANCE, ETC.. SO THAT'S A PIECE I'M NOT GOING TO I DON'T HAVE IT BUILT IN IN ANOTHER SPOT. BUT I WANTED TO RECOGNIZE THE ROLE THAT THAT PLAYS IN THE TIME THAT IT TAKES UP FOR OUR FRONT COUNTER STAFF. SO I'M GOING TO START WITH PUBLIC HOUSING. THIS IS ENTIRELY FUNDED BY HUD VIA AN OPERATING SUBSIDY AND A CAPITAL FUND PROGRAM. HOWEVER, THE CITY OF FLAGSTAFF OWNS AND OPERATES ALL OF THE UNITS. THOSE UNITS HAVE A DECLARATION OF TRUST ON THEM THAT LIMITS THEIR USE TO PUBLIC HOUSING AND LOW INCOME BENEFIT. SO WHILE THE CITY OWNS THE LAND AND WE OPERATE THE UNITS WITH HUD FUNDING, THERE'S A DECLARATION OF TRUST RESTRICTING THE USE OF THE LAND. THOSE THE LAND AND THE UNITS. PUBLIC HOUSING SERVES HOUSEHOLDS UP TO 80% OF AREA MEDIAN INCOME. HOWEVER, 40% OF NEW ADMISSIONS TO THAT PROGRAM MUST BE EXTREMELY LOW INCOME, SO THEY MUST BE AT 30% OF AREA MEDIAN INCOME OR BELOW, WHICH IS AN INCOME OF 23,200 FOR A HOUSEHOLD OF THREE. THIS IS AN INCOME BASED PROGRAM WHERE ELIGIBLE HOUSEHOLDS PAY 30% OF THEIR GROSS INCOME TOWARDS RENT, WHERE THEY HAVE A MINIMUM RENT IF THEY ARE A NO INCOME HOUSEHOLD. AND THAT IS A CERTIFICATION PROCESS THEY GO THROUGH. SUBSIDIES FOR FOOD AND OTHER SERVICES IN THOSE CASES ARE NOT COUNTED NECESSARILY AS INCOME. I QUITE OFTEN GET THE STATEMENT OF WHY DON'T WE JUST BUILD MORE PUBLIC HOUSING? WELL, BECAUSE THERE'S SOME FAIRCLOTH AMENDMENT FROM 1999 THAT RESTRICTS ANY FURTHER PUBLIC HOUSING UNITS TO BE BUILT OR OBTAINED. SO WHEN I STARTED OVER WITH THE HOUSING AUTHORITY. GOSH, IT'S BEEN PROBABLY EIGHT YEARS AGO NOW. AND I THOUGHT, OKAY, WELL, IF SOME PUBLIC HOUSING AUTHORITIES AREN'T USING ALL OF THEIR FAIRCLOTH A LOT, DOES THAT MEAN THAT WE CAN UTILIZE THEIR UNITS? THE ANSWER TO THAT IS NO. I ASKED AS MANY QUESTIONS AS I COULD TO FIGURE OUT HOW TO GET AROUND THIS. THERE ISN'T, ALTHOUGH THERE HAS BEEN. THERE WAS LEGISLATION INTRODUCED LAST. SESSION IN CONGRESS THAT WOULD CHANGE THIS FAIR CLOTH LIMITATION, AND IT DID NOT MAKE IT ALL THE WAY THROUGH THE PROCESS. I UNDERSTAND THAT IS BACK WHERE WE WERE NOT WATCHING IT INTENSELY AT THIS MOMENT IN TIME AS WE'VE BEEN BUSY WITH OTHER THINGS, BUT WE ARE INTERESTED IN IT AND KNOW THAT OUR FEDERAL LOBBYING TEAM KEEPS AN EYE ON THAT FOR US. WHEN YOU SEE THE NEXT SLIDE AND YOU SEE WHEN SOME OF OUR UNITS WERE CREATED, WE ACTUALLY HAD BEEN FUNDED TO CREATE UNITS, RIGHT AS THIS WENT INTO PLACE IN 1999. AND THE UNITS WERE ACTUALLY NOT COMPLETED UNTIL 2002. AND THE HOUSING AUTHORITY AT THAT TIME HAD TO APPEAL THE TIMELINE IN ORDER TO GET THOSE ACCEPTED AS PUBLIC HOUSING UNITS. SO IN THE NEXT SLIDE, YOU SEE A TIMELINE THAT GOES OUT TO 2002. THAT WAS AN EXCEPTION. AND OUR COMMUNITY ACTUALLY HAS SOME OF THE VERY LAST PUBLIC HOUSING UNITS CREATED IN THE NATION. I UNDERSTAND THAT THERE MIGHT BE. QUESTION YES, AND I HAVE A QUESTION AFTER COUNCIL MEMBER HOUSE, SO FIRST COUNCIL MEMBER MCCARTHY. SARAH, YOU'RE SAYING THAT NO NEW PUBLIC HOUSING UNITS CAN BE CREATED. A COUPLE OF YEARS AGO, WE WERE GOING TO DO SOME DIVERSE HOUSING PROJECTS AROUND TOWN, AND THEY KIND OF FELL THROUGH FOR WHATEVER REASON. BUT WERE THOSE A DIFFERENT TYPE? THEY THEY WEREN'T PUBLIC HOUSING UNITS. REMEMBER THE ONE RIGHT UP BY WHERE IS THAT SAFEWAY UP THERE, JUST OFF. OKAY. YOU KNOW, WHICH ONES I'M TALKING ABOUT. I DO. I DO THINK YOUR COUNCIL MEMBER MCCARTHY THOSE WERE INTENDED TO BE LOW INCOME HOUSING TAX CREDIT UNITS. AND SO A DIFFERENT PROGRAM THERE. THOSE THAT HAVE BEEN ON COUNCIL MAY ALSO RECALL RAD, WHICH I'M GOING TO TALK ABOUT IN A LITTLE BIT, WHICH IS A PROGRAM THAT WOULD ALLOW US TO SWITCH OUR PUBLIC HOUSING UNITS OUT OF THE PUBLIC HOUSING BOX. INTO A DIFFERENT REGULATORY BOX, THEY WOULD STILL OPERATE 98% THE SAME, BUT IT WOULD STABILIZE OUR [02:10:02] OPERATING SUBSIDY AND CAPITAL FUND ALLOCATION. RIGHT NOW, WE DON'T KNOW WHAT OUR BUDGET IS GOING TO BE FOR THESE PROGRAMS FROM YEAR TO YEAR UNTIL CONGRESS PASSES A BUDGET. AND SO SOMETIMES WE'RE FOUR OR FIVE, SIX MONTHS INTO THE FUNDING YEAR BEFORE WE ACTUALLY KNOW WHAT THE MONEY WE'RE RECEIVING IS. AND THAT'S REALLY DIFFICULT TO PLAN. LONGEVITY OR EVEN THE NEXT EIGHT MONTHS WHEN YOU DON'T KNOW WHAT YOUR OPERATING SUBSIDY IS GOING TO BE. SO THAT IS A FINANCIAL RESTRUCTURING WITH A REDEVELOPMENT OPPORTUNITY, BUT IT WOULD NOT CREATE ADDITIONAL PUBLIC HOUSING UNITS THAT WOULD CREATE SIMILARLY ASSISTED UNITS IN A DIFFERENT HUD SILO. SO THE PROJECT YOU'RE REFERRING TO, COUNCIL MEMBER MCCARTHY, WAS INTENDED TO BE LITECH OR THE LOW INCOME HOUSING TAX CREDIT UNITS. ALL RIGHT. THANK YOU. AND THANK YOU, MAYOR. THANK YOU COUNCIL MEMBER. COUNCIL MEMBER HOUSE. THANK YOU, MAYOR. THANK YOU, SARAH. AND YOU PARTIALLY ANSWERED MY QUESTION ALREADY I THINK JUST ABOUT THE FAIR CLAUSE. SO I KNOW THAT THERE WAS AN ATTEMPT TO AND IT ACTUALLY PASSED THE HOUSE IN 2020 TO REPEAL THAT. AND I WAS GOING TO ASK IF THERE WERE ANY UPDATES ON FURTHER EFFORTS FOR THAT. I DO THINK THAT SOMETHING FOR US TO CONSIDER KEEPING AN EYE ON AS A POTENTIAL LEGISLATIVE PRIORITY GOING INTO THE FUTURE TO SUPPORT SOME OF THOSE EFFORTS. BUT AS YOU WERE SPEAKING, SARAH, YOU ALSO RAISED ANOTHER QUESTION IN TERMS OF THE RAD PROCESS, AND YOU MAY COVER THIS LATER, SO JUST LET ME KNOW IF THAT'S GOING TO HAPPEN. BUT IS MY UNDERSTANDING CORRECT THAT IN DOING THAT PROCESS WE WOULD BE MOVING THOSE UNITS OUT OF THE PUBLIC HOUSING PROGRAM? BUT THAT DOESN'T NECESSARILY MEAN THAT WE CAN REPLACE THEM. DOES THAT MAKE SENSE? IT DOES MAKES SENSE. YES AND NO. HERE'S WHY, WE WOULD MOVE THEM OUT OF BEING PUBLIC HOUSING UNITS AND PUT THEM UNDER A PROGRAM THAT HAS A DIFFERENT TITLE. UM. PUBLIC HOUSING HAS BEEN SEVERELY UNDERFUNDED FOR DECADES AND DECADES AND DECADES. QUITE OFTEN THAT CAPITAL FUND PROGRAM, CONGRESS ALLOCATES A NUMBER. HUD TRIES TO FIGURE OUT HOW TO EQUITABLY SPLIT THAT. IT'S NOT ENOUGH MONEY TO DO TO ADDRESS THE EXISTING CAPITAL NEEDS, MUCH LESS FUTURE CAPITAL NEEDS FOR PUBLIC HOUSING. AND SO THAT NUMBER GETS PRORATED OR IT'S LESS FUNDING THAN WE KNOW. SO HOUSING AUTHORITIES AROUND THE NATION ARE SUFFERING DETERIORATION WITHIN THEIR PUBLIC HOUSING, THAT THEY SIMPLY DO NOT HAVE THE FUNDS FROM HUD TO ADDRESS. AND SO THAT HAS CREATED SYSTEMIC ISSUES. WE'RE REALLY LUCKY. KNOCK WOOD AND DESK VERY QUICKLY. WE'RE REALLY LUCKY BECAUSE WE'VE HAD PHENOMENAL MANAGEMENT WITHIN OUR PUBLIC HOUSING, MAINTENANCE AND FINANCE PIECES, AS WELL AS OUR PUBLIC HOUSING PROGRAMS OVERALL, WHERE WE'VE BEEN ABLE TO PRIORITIZE OUR CAPITAL FUNDS AND DO THINGS IN CHUNKS. FOR EXAMPLE, WE KNOW THAT WE NEED TO REPLACE THE WE'RE REPLACING SIDING A LITTLE BIT AS A TIME AS WE GO THROUGH, AS WE CAN AFFORD TO DO IT. WOULD IT BE MORE COST EFFECTIVE TO DO IT ALL AT THE SAME TIME? YEP. YEP, IT WOULD. BUT WE DON'T HAVE THE MONEY TO DO THAT. AND SO WE CHUNK THOSE THINGS OUT. AND BY DOING THAT, WE HAVE BEEN ABLE TO SUSTAIN A LEVEL OF UNIT CONDITION THAT REMAINS ACCEPTABLE. AND WENT I SAY THAT IS BECAUSE THERE ARE HOUSING AUTHORITIES AROUND THE NATION THAT HAVE PUBLIC HOUSING UNITS THAT HAVE BEEN CONDEMNED OR DEEMED NO LONGER HABITABLE. WE'RE NOT ANYWHERE NEAR THAT. AND SO I GIVE CREDIT TO PAST FOLKS AND OUR CURRENT STAFF AS WELL THAT WORK VERY, VERY HARD TO MAKE SURE WE'RE ADDRESSING THE MOST IMPORTANT NEEDS. WE'RE NOT PUTTING IN NEW CABINETS NECESSARILY, BUT WE'RE MAKING SURE THAT THE PLUMBING IS WORKING, THAT TYPE OF THING. SO WITHIN RAD AND I DID NOT INCLUDE MUCH DISCUSSION OF RAD IN THIS BECAUSE THAT'S A WHOLE OTHER ANIMAL THAT WE WILL BE BACK TO YOU WITH. BUT I WANTED TO GIVE YOU A QUICK FLY OVER. IT, THE CONCEPT OF RAD IS TO LET HOUSING AUTHORITIES, WHICH IN OUR CASE WOULD BE THE CITY, SECURE FINANCING AGAINST THE [02:15:01] FREELY OWNED ASSETS, IN OUR CASE THE LAND, IN ORDER TO CREATE THAT CASH FLOW THAT COULD ADDRESS THE DEFERRED CAPITAL NEEDS. WE ALSO WANT TO UTILIZE THOSE AS A REDEVELOPMENT OPPORTUNITY. AND SO WE'LL BE BACK IN THE COMING MONTHS WITH A MUCH MORE IN-DEPTH DISCUSSION OF RAD ITSELF. AND RAD STANDS FOR RENTAL ASSISTANCE DEMONSTRATION PROGRAM. IT MAKES NO SENSE. BUT IT IS. IT'S RAD. IT DID USE SOME EIGHTIES GRAPHICS IN MY RAD PRESENTATION A COUPLE OF YEARS AGO, SO I'LL TRY TO BRING THOSE BACK WHEN WE CAN. THANK YOU SARAH AND I HAVE A QUICK QUESTION. I KNOW YOU'RE GOING TO GO INTO THE NUMBER OF UNITS WE HAVE AT THE DIFFERENT AT OUR DIFFERENT SITES, BUT ARE YOU ABLE TO TELL US HOW MANY PEOPLE ARE ON THE WAITING LIST FOR CITY OWNED HOUSING? I CAN AND IT'S IN MY NOTES. A COUPLE OF SLIDES DOWN. AND I ADDED IT ABOUT 30 MINUTES BEFORE THE MEETING STARTED. SO, YES, I CAN TELL YOU THAT IN JUST A FEW SLIDES. GREAT. THANKS. THANK YOU AND COUNCIL MEMBER HOUSE. I AGREE ON WATCHING THE FAIRCLOTH PIECE. THE OTHER CONSIDERATION OR CONCERN THAT COMES WITH IT IS IF THE FAIRCLOTH LIMITATION IS REMOVED, BUT NO NEW OPERATING SUBSIDY OR CAPITAL FUND DOLLARS ARE DEDICATED TO HUD, THEN THERE YOU COULD CREATE NEW UNITS, BUT THEN YOU'RE GOING TO HAVE TO TAKE YOUR EXISTING PIE, WHICH IS ALREADY SMALLER THAN IT NEEDS TO BE, AND EXTEND IT TO INCORPORATE YOUR NEW UNITS. IF THERE IS NOT AN ACCOMPANYING FUNDING ALLOCATION INCREASE THAT GOES WITH THAT. SO IT'S A IT'S A TWO PRONGED PIECE WITH THAT. OKAY. HOW MANY UNITS DO WE HAVE? 265 UNITS. BRANNEN HOMES, WHICH IS OVER OFF OF LONE TREE AND 127 UNITS. YOU CAN SEE THERE YEARS OF CONSTRUCTION HERE STARTING IN 1952. THE COGDILL REC CENTER IS ALSO PART OF THE HOUSING AUTHORITY CURRENTLY UTILIZED BY THE BOYS AND GIRLS CLUB, WHICH IS A LOVELY, COMPLIMENTARY USE FOR OUR NEIGHBORHOOD. WE HAVE A SMALL OFFICE ON SITE AND A MAINTENANCE SHOP LOCATED ON SITE AT BRANDON HOMES. SILER HOMES BUILT IN 1972 IS 100 AND EXCUSE ME, 100 UNITS. WE HAVE A HEAD START FACILITY ON SITE, AS WELL AS THE SHACK, WHICH IS UTILIZED BY TINKER TOPIA. WHEN I FIRST STARTED THE HOUSING AUTHORITY, NOBODY TOLD ME WHAT THE SHACK MEANT AND I WAS I WAS KIND OF APPALLED THAT WE HAD A BUILDING CALLED THE SHACK. IT STANDS FOR THE SILER HOMES ACTIVITY CENTER. AND SO BUT FOR SURE, IT'S A SHACK. SO IF YOU HEAR THAT, THAT'S WHAT IT IS. IT'S AN ACTIVITY CENTER IN SILER RIGHT NOW, UTILIZED BY TINKER TOPIA. AGAIN, ANOTHER FABULOUS COMPLEMENTARY USE FOR OUR NEIGHBORHOOD. SILER HOMES IS FILLED MAINLY WITH FAMILIES. THERE ARE NO ONE BEDROOM UNITS. SILER THERE ARE 2 TO 5 BEDROOM UNITS. SILER SO WE HAVE A LOT OF KIDDOS OVER IN THE SILER HOMES DEVELOPMENT. THIS IS WHERE OUR MAIN OFFICE IS LOCATED AND OUR MAIN MAINTENANCE SHOP AS WELL. BRENNAN HOMES HAS 1 TO 4 BEDROOM UNITS. I'M REMEMBERING CORRECTLY WITH SIX OR SEVEN ONE BEDROOM UNITS. WHEN THESE UNITS WERE BUILT, THE HOUSEHOLD MAKEUP IN OUR COUNTRY WAS VERY DIFFERENT. WE HAVE MANY MORE LARGER UNITS, FOUR AND FIVE BEDROOM, THREE, FOUR AND FIVE BEDROOM UNITS BECAUSE THAT WAS WHAT WAS NEEDED AT THAT TIME. SINCE THEN, AS I KNOW THAT YOU'RE AWARE, WE'VE SEEN A SHIFT DOWN INTO NEED WITH SMALLER UNIT SIZES. ONE, TWO. AND ONE OF MY FIRST QUESTIONS WAS, WELL, CAN'T WE SPLIT ONE OF THE FOUR BEDROOMS INTO TWO TWO BEDROOMS? NO, BECAUSE FAIRCLOTH, THAT WOULD BE CREATING AN ADDITIONAL UNIT. SO. I LIKE TO KNOCK ON A LOT OF DOORS EVEN WHEN THEY TELL ME NO. WE ALSO ADMINISTERED SCATTERED SITES THROUGHOUT THE COMMUNITY. WE HAVE 38 UNITS PURCHASED AND DEVELOPED BETWEEN 1986 AND 2002. THERE'S 2002 NUMBER I MENTIONED. THOSE ARE LOCATED IN CHERRY HILL, SOUTHSIDE, SUNNYSIDE, GREENLAW AND NORTH OF THE HOSPITAL ARE WHERE OUR SCATTERED SITE UNITS CURRENTLY ARE. HERE'S OUR MAINTENANCE TEAM AND THIS IS THIS PICTURE IN THE LAST YEAR OR TWO OF THESE MOST FABULOUS FOLKS HAVE TAKEN A WELL DESERVED RETIREMENT. SO IT'S NOT QUITE A CURRENT PICTURE, BUT IT'S CLOSE. I FEATURE THEM SEPARATELY BECAUSE THEY ARE RESPONSIBLE FOR THE PHYSICAL CONDITION AND OPERATION OF ALL OF OUR PUBLIC HOUSING UNITS AND [02:20:09] GROUNDS. AND SO THEY ARE A RESIDENTIAL MAINTENANCE TEAM. SO WE ARE IN ESSENCE, NOT IN ESSENCE WE ARE A LANDLORD. AND SO WHEN SOMEONE'S KITCHEN SINK IS CLOGGED. THESE ARE THE FOLKS THAT GO OUT AND UNCLOG THAT SINK AS WELL AS IMPLEMENT OUR CAPITAL PROGRAM, OUR CAPITAL FUNDING, DIFFERENT THAN CITY CAPITAL FUNDS. PUBLIC HOUSING CAPITAL FUNDS ARE SPECIFICALLY FOR THE MAINTENANCE OF HOUSING UNITS. AND SO IT'S JUST A GREAT TEAM. IT'S LED BY A GENTLEMAN WHO'S BEEN WITH THE HOUSING AUTHORITY FOR SINCE HE WAS 18. I THINK HE'S AT 22 YEARS NOW AND IS NOW THE MAINTENANCE MANAGER WHO'S PROMOTED INTO THAT WITHIN THE LAST YEAR. HIS NAME IS [INAUDIBLE] AND HE IS. HE IS FABULOUS. HE KEEPS THIS TEAM RUNNING. THE TEAM KEEPS HIM RUNNING. I CANNOT SAY ENOUGH ABOUT OUR MAINTENANCE TEAM. THEY ARE THE OIL THAT KEEPS PUBLIC HOUSING MOVING. CLARK HOLMES, THIS IS IMPORTANT. SO WE FEE MANAGE MEANING VIA A CONTRACT. CLARK HOMES. HOWEVER, IT IS OWNED BY THE FLAGSTAFF HOUSING CORPORATION, WHICH IS A SEPARATE CORPORATION. THE CORPORATION BOARD OVERSEES CLARK HOMES, NOT THE HOUSING AUTHORITY BOARD AND NOT CITY COUNCIL. SO WE OPERATE ALL FUNCTIONS OF CLARK HOMES AND WE ARE REIMBURSED 100% PLUS A SMALL ADMINISTRATIVE FEE FOR RUNNING CLARK HOMES. SO IT IS AT NO COST TO THE CITY OF FLAGSTAFF AT ALL. AND IT GIVES US A LITTLE BIT OF UNRESTRICTED FUNDING. NOT MUCH. IT IS A IT IS A VERY SMALL PERCENTAGE. I BRING THIS UP BECAUSE FOLKS QUITE OFTEN FEEL NOT FEEL THEY BELIEVE THAT CLARK HOLMES IS ONE OF OUR PUBLIC HOUSING PROPERTIES, NOT IT'S ACTUALLY UNDER A SEPARATE HUD PROGRAM. HOWEVER, WE ADMINISTER IT SO IT SERVES HOUSEHOLDS AT 50% OF MEDIAN INCOME AND BELOW, WHICH IS 38,700 FOR A 3 PERSON HOUSEHOLD. AND AGAIN, 40% OF OUR NEW ADMISSIONS MUST BE UNDER 30%. THIS PROPERTY SERVES FAMILIES, ELDERLY, DISABLED. IT HAS AN ENTIRE SECTION THAT OUR SMALLER UNITS, ONE BEDROOM UNITS THAT SERVE OUR ELDERLY POPULATION. SINGLE STORY, ONE BEDROOMS. AND THIS ONE IS LOCATED OFF OF COURT ROAD. ALL RIGHT. MOVING FROM PUBLIC HOUSING INTO VOUCHER PROGRAMS. SO QUITE OFTEN WHAT I ENCOUNTER WITH FOLKS IS THEY THINK IT'S ALL PUBLIC HOUSING OR THEY THINK THAT IT IS ALL SECTION [INAUDIBLE]. SO IT'S ACTUALLY NOT. PUBLIC HOUSING IS WHERE WE OWN AND OPERATE THE UNITS. WE QUALIFY PEOPLE TO LIVE WITHIN THOSE UNITS. THEN INCOME REQUALIFY THEM EVERY YEAR. WE'RE RESPONSIBLE FOR THE MAINTENANCE. THE UNIT TURNS ALL OF THOSE PIECES. VOUCHER PROGRAMS ARE ATTACHED TO PEOPLE, NOT TO UNITS. SO I WILL EXPLAIN THAT IN THE NEXT SLIDE. BUT WE HAVE OVER 529 VOUCHERS AND WE'RE ALLOCATED A CERTAIN NUMBER AND TYPE OF VOUCHERS. WE'RE ALLOCATED A MONEY AMOUNT. AND THEN IT'S OUR RESPONSIBILITY TO WORK TO BALANCE THE TEETER TOTTER BECAUSE THEY DON'T ISSUE US THIS NUMBER OF ONE BEDROOM VOUCHERS AND THIS NUMBER OF THREE BEDROOM VOUCHERS. AND WE KNOW THAT THE RENTS ARE DIFFERENT FOR THOSE TYPES OF UNITS. YES. AND SO WE BALANCE THAT TEETER TOTTER OF FUNDING AND WHAT NEED WALKS IN OUR DOOR. AND SO WE HAVE 333 SECTION EIGHT VOUCHERS PLUS 9 NEW. WE GOT NINE NEW VOUCHERS IN THE FIRST NEW TRADITIONAL SECTION EIGHT VOUCHERS TO COME OUT IN MANY, MANY YEARS. WE WERE ALLOCATED 9 VIA A FORMULA AND WE JUST GOT A LETTER ONE DAY. CONGRATULATIONS. EXCELLENT. SO WE'RE FIGURING THAT PIECE OUT. WE ADMINISTER 106 VASH, WHICH IS VETERANS FOR VOUCHERS, TARGETED FIRST TO VETERANS WHO ARE HOMELESS OR HOUSING CHALLENGED. WE PARTNER WITH THE VETERANS ADMINISTRATION. THE USERS OF OUR VASH VOUCHERS DO NOT COME IN THROUGH THE WAITING LIST. THEY COME IN ONLY THROUGH REFERRALS FROM THE VA. WE PROVIDE THE VOUCHERS AND THE HOUSING SERVICES, AND THE VA PROVIDES THE SUPPORT SERVICES THAT GO ALONG WITH WORKING TO CREATE [02:25:01] HOUSING SUCCESS AND SECURITY FOR OUR VASH PARTICIPANTS. WE PARTNER WITH THE GUIDANCE CENTER TO ADMINISTER 12 SRO SINGLE ROOM OCCUPANCY UNITS IN THE COMMUNITY. WE PROVIDE ALL OF THE ADMINISTRATIVE FUNCTIONS, ALL OF THE PAPERWORK, THE QUALIFYING, ETC.. THE GUIDANCE CENTER ADMINISTERS THE [INAUDIBLE], THE RESIDENTS. THOSE ARE THE WRONG WORDS. THE GUIDANCE CENTER IDENTIFIES THE RESIDENTS TO LIVE IN THE UNITS AND THEN PROVIDES THE ACCOMPANYING SERVICES THAT GO WITH SERVING SERIOUSLY MENTALLY ILL. WE HAVE 40 MAINSTREAM VOUCHERS. THIS IS THE SILLIEST NAME ON THE PLANET. YOU THINK MAINSTREAM? IT'S OPEN TO EVERYBODY. NO, MAINSTREAM MEANS A HOUSEHOLD WITH A DISABLED MEMBER, A NON ELDERLY HOUSEHOLD WITH A DISABLED MEMBER. SO WE HAVE 40 OF THOSE. THOSE ARE NEW WITHIN THE LAST THREE YEARS. WE WERE AWARDED 29 EHV OR EMERGENCY HOUSING VOUCHERS. IN THE LAST TWO YEARS THESE VOUCHERS ARE UTILIZED ONLY FOR HOUSEHOLDS EXPERIENCING OR FACING HOMELESSNESS OR FLEEING DOMESTIC VIOLENCE OR HUMAN TRAFFICKING. WE PARTNER WITH THE FRONT DOOR CONTINUUM OF CARE WITH THIS PROGRAM. IT IS REQUIRED FOR THE ADMINISTRATION OF THESE VOUCHERS TO NOT COME IN THROUGH OUR WAITING LIST PROCESS, BUT RATHER TO SERVE A TRUE EMERGENCY FUNCTION WHERE OUR HOUSING NAVIGATOR GOES AND SITS DOWN AT THE CASE CONFERENCING MEETING THAT THE FRONT DOOR AGENCIES HAVE, AS WE ARE ONE OF THEM NOW, AND DOES THE CASE CONFERENCING FOR THE NEEDS OF THE FOLKS FACING OR CURRENTLY EXPERIENCING HOMELESSNESS TO MAKE SURE THEY GO INTO THE MOST APPROPRIATE PROGRAM? WE HAVE 29 OF THOSE. THOSE ARE ONLY AVAILABLE. LET ME FIGURE OUT HOW TO PHRASE THIS. THE HOUSING SUBSIDY CAN CONTINUE FOR MANY YEARS. HOWEVER, ANY VOUCHER SURRENDERED, MEANING NO LONGER UTILIZED BY A HOUSEHOLD AFTER SEPTEMBER OF THIS YEAR, WE ARE UNABLE TO REISSUE. AND SO ONE OF THE PIECES THAT GOES ALONG WITH EMERGENCY HOUSING VOUCHERS IS ASSISTING HOUSEHOLDS IN MAINTAINING AND MAINTAINING HOUSING. NOT JUST IDENTIFYING IT, BUT MAINTAINING IT. AND SO IT'S SOMETHING THAT OUR HOUSING NAVIGATOR WORKS ON. WE HAD A FAIRLY YOUNG PERSON WITHIN ONE OF THESE PROGRAMS WHO HAD A PET, HAD A DOG, AND HE WAS ABLE TO SECURE EMPLOYMENT, WHICH WAS LEAVING THE DOG HOME ALONE. QUITE A NUMBER OF HOURS IN A DAY DOG BECAME DESTRUCTIVE. OUR HOUSING NAVIGATOR WAS ABLE TO WORK WITH THIS YOUNG MAN TO DEVELOP SOME SOLUTIONS SO THAT HE COULD REMAIN IN HIS HOUSING. AND STILL MAINTAIN HIS JOB AND HIS PET. SO IT WAS THAT SUPPORT PIECE THAT KEPT HIM SUCCESSFULLY HOUSED. THAT'S ONE OF THE SIMPLER CASES THAT WE WORK WITH IN THAT PROGRAM. QUITE OFTEN OUR CLIENTS THERE ARE VERY HIGH NEEDS. NOW FOR ONE OF MY ABSOLUTELY FAVORITE PROGRAMS, WHICH IS CALLED FYI, WHICH IS FOSTER YOUTH TO INDEPENDENCE. AND THIS PROGRAM SERVES KIDDOS AGING OUT OF FOSTER CARE OR WHO HAVE AGED OUT OF FOSTER CARE AND THEY'RE EXPERIENCING HOMELESSNESS. THERE'S NOT A NUMBER HERE BECAUSE, AGAIN, THESE CLIENTS DO NOT COME TO US THROUGH THE WAITING LIST. THEY COME TO US THROUGH A REFERRAL FROM THE ARIZONA DEPARTMENT OF CHILD SAFETY WHO CERTIFIES THAT THEY'RE ELIGIBLE EITHER COMING OUT OF FOSTER CARE OR EXITED FOSTER CARE AT THE POINT OF 18, GO UP TO AGE 26 ON HELP WITH THESE SUPER, INCREDIBLY IMPORTANT PROGRAM. RIGHT NOW, I THINK WE HAVE FOUR OF THESE LEASED. AGAIN, A VERY HIGH NEEDS POPULATION. WE ARE ENCOUNTERING YOUNG ADULTS WHO HAVE NOT BEEN GIVEN THE OPPORTUNITY TO LEARN SOME BASIC HOUSEHOLD SKILLS. THEY DON'T UNDERSTAND WHAT A LEASE IS. THEY DON'T UNDERSTAND HOW TO ABIDE BY IT. THEY DON'T UNDERSTAND THAT A LEASE WARNING IS NOT AN EVICTION NOTICE, THAT TYPE OF THING. SO BUT AN INCREDIBLY, IT IS TIME INTENSIVE, BUT IT IS AN INCREDIBLY IMPORTANT RESOURCE IN OUR COMMUNITY. THERE'S A NEW SOURCE OF VOUCHERS COMING OUT CALLED HOUSING STABILIZATION VOUCHERS. WE SENT IN OUR INTEREST LETTER QUITE A WHILE AGO AND WE HAVE YET TO HEAR BACK. BUT WHEN WE SEE THE NEW VOUCHER OPPORTUNITIES, WE NEED TO THROW OUR NAME IN THE HAT FOR THOSE BECAUSE OUR NEED IS JUST SO BIG. [02:30:08] ALL RIGHT. SO HOW IN THE WORLD DOES A VOUCHER PROGRAM WORK? SO REMEMBER I SAID THE VOUCHER IS ATTACHED TO PEOPLE, NOT TO. SO A HOUSEHOLD WOULD APPLY FOR A VOUCHER. THAT'S THE BLUE TENANT ON THE LEFT HAND SIDE. SO THEY WOULD APPLY WE WOULD INCOME QUALIFY THEM, MAKE SURE THEY'RE ELIGIBLE WITH ALL THE OTHER PROGRAM DYNAMICS, AND THEN ISSUE THEM A VOUCHER. IT IS THEIR RESPONSIBILITY TO TAKE THAT VOUCHER AND GO OUT INTO THE OPEN MARKET AND IDENTIFY A UNIT THAT THEY CAN RENT THAT FITS WITHIN THE PROGRAM DYNAMICS AND FUNDING ALLOWED BY HUD. IS IT? SO THE OTHER NAME FOR SECTION EIGHT IS CALLED THE HOUSING CHOICE VOUCHER PROGRAM, AND YOU GET TO CHOOSE WHERE YOU LIVE. AND SO THE TENANT FINDS THE UNIT A LEASE IS ULTIMATELY EXECUTED BETWEEN THE TENANT AND THE LANDLORD. WE ARE NOT PARTY TO THAT LEASE. WE EXECUTE AN ASSISTANCE CONTRACT WITH THE LANDLORD SPECIFYING THAT WE'RE GOING TO PAY THE REMAINDER OF RENT, THAT 30% OF THE TENANTS HOUSEHOLD INCOME. I SAID THAT BACKWARDS. THE TENANT PAYS 30% OF THEIR GROSS HOUSEHOLD INCOME TO THE LANDLORD, AND THE HOUSING AUTHORITY PAYS THE REMAINDER OF THAT RENT AS A HOUSING SUBSIDY. SO WE HAVE TWO CONTRACTS, ONE WITH THE LANDLORD AND ONE WITH THE TENANT. AND THEN THERE'S ANOTHER AGREEMENT, WHICH IS THE LEASE BETWEEN THE TENANT AND THE LANDLORD. ALL OF THESE CLIENTS EVERY YEAR MUST BE RE INCOME CERTIFIED OR ANY TIME THEY HAVE A SIGNIFICANT CHANGE IN INCOME, JUST LIKE PUBLIC HOUSING. WE ARE ALSO RESPONSIBLE FOR INSPECTING THE UNITS, MAKING SURE THEY MEET HOUSING QUALITY STANDARDS AND HOUSING, MAINLY MEETING HOUSING QUALITY STANDARDS. SO WE ARE OUT WITH THOSE 529 VOUCHERS IN THE COMMUNITY. THAT 529 MEANS THAT'S HOW MANY HOUSEHOLDS WE SERVE WITH THOSE VOUCHERS. WE HAVE ABOUT 150 PARTICIPATING LANDLORDS. THE LIFEBLOOD OF THIS PROGRAM DOES NOT WORK WITHOUT LANDLORDS. AND ABOUT $325,000 A MONTH GOES OUT INTO THE COMMUNITY TO LOCAL LANDLORDS ON BEHALF OF VOUCHER PROGRAM PARTICIPANTS. SO EVERY HOUSEHOLD AGAIN PAYS A THIRD OF THEIR INCOME. WE MAKE UP THE DIFFERENCE. THERE IS A CAP ON WHAT THAT MAXIMUM RENT CAN BE. I WAS TRYING TO KEEP IT SUPER HIGH LEVEL. SO I JUST WANT TO MENTION THAT THERE IS A CAP. IT'S NOT JUST ANY APARTMENT YOU FIND. YOU CAN ONLY RENT A HOUSEHOLD, A BEDROOM, FITTING YOUR HOUSEHOLD SIZE. SO IF YOU'RE A HOUSEHOLD OF ONE, YOU'RE NOT APPROVED FOR A FOUR BEDROOM APARTMENT. THERE'S 150 DIFFERENT REGULATIONS AND PIECES THAT GO INTO THIS. BUT IN ESSENCE, THAT IS HOW OUR VOUCHER PROGRAMS WORK. SARAH, CAN I HOP IN HERE REAL QUICK? YES, MA'AM. THESE 150 PARTICIPATING LANDLORDS ISN'T ONE OF THE BENEFITS OF ACCEPTING VOUCHERS THAT YOU'RE GUARANTEED THAT YOU'RE GOING TO GET THE RENT ON TIME? YOU'RE GUARANTEED TO GET THE HOUSING ASSISTANCE PAYMENT FROM THE HOUSING AUTHORITY ON TIME. THE TENANT IS STILL RESPONSIBLE FOR PAYING THEIR PORTION OF THE RENT TO THE LANDLORD. OKAY. THANK YOU. AND I GUESS I'D JUST LIKE TO THANK THE 150 PARTICIPATING LANDLORDS FOR ACCEPTING THEM. I UNDERSTAND THAT NOT ALL LANDLORDS WILL ACCEPT VOUCHERS. SO GRATITUDE TO THOSE LANDLORDS. THANK YOU FOR THAT. SORRY TO INTERRUPT. NO, YOU'RE GOOD. WE ACTUALLY ORDERED SOME THANK YOU NOTES SPECIFICALLY TO BE ABLE TO INCLUDE WHEN WE'RE SENDING CONTRACTS BACK AND FORTH WITH PARTICIPATING LANDLORDS, ESPECIALLY THOSE THAT MAY GO ABOVE AND BEYOND IN ORDER TO MAKE THEMSELVES AVAILABLE FOR AN INSPECTION THAT ISN'T DURING NORMAL BUSINESS HOURS, THAT TYPE OF THING. BASED TO ACCOMMODATE THE RESIDENT, ETC.. SO WE ARE WORKING TO RECOGNIZE THOSE LANDLORDS. PROGRAMS ACROSS THE NATION ARE HAVING TROUBLE BECAUSE WE CAN'T PAY MORE THAN A CERTAIN AMOUNT OF RENT WHEN THEY CAN OFTEN GET WAY MORE THAN THAT IN THE MARKET. AND SO WE WE WORK TO THANK THEM AT EVERY OPPORTUNITY. SO THANK YOU FOR THAT RECOGNITION. ALL OF OUR WAITING LISTS ARE OPEN. THERE'S AN ONLINE APPLICATION PROCESS FOR ALL OF OUR PROGRAMS. WE ALSO HAVE COMPUTERS AND HELP AVAILABLE AT OUR MAIN OFFICE. WE HAVE STAFF THAT WILL SIT DOWN AND ASSIST FOLKS WITH ENTERING. AND OUR ONLINE APPLICATION IS MOBILE DEVICE COMPATIBLE. [02:35:02] SO IT DOESN'T HAVE TO BE ON A COMPUTER. IT CAN BE ON A MOBILE DEVICE. OF COURSE, REASONABLE ACCOMMODATIONS EXIST FOR THOSE WITH DISABILITIES WHO ARE UNABLE TO COMPLETE ON THEIR OWN. WE ENCOURAGE ANYBODY WHO DOES NOT FEEL THEY HAVE THE ACCESS OR DOUBT THEIR KNOWLEDGE, OUR ABILITY TO ENTER THAT APPLICATION ONLINE, TO VISIT THE OFFICE, AND WE WILL HELP THEM. SO AVERAGE WAIT TIME TO RECEIVE ASSISTANCE VARIES. WE DO HAVE A LOCAL PREFERENCE FOR BOTH PROGRAMS, MEANING THAT ANY HOUSEHOLD THAT LIVES OR WORKS WITHIN FLAGSTAFF OR OUR SURROUNDING AREAS WILL BE SERVED BEFORE HOUSEHOLDS INTENDING TO MOVE HERE FROM OUTSIDE THE COMMUNITY. THE EXCEPTION TO THAT IS IF A HOUSEHOLD HAS A JOB OFFER HERE THAT THAT QUALIFIES UNDER LOCAL PREFERENCE MUST BE MORE THAN 20 HOURS A WEEK. MUST BE A WRITTEN JOB OFFER, THAT TYPE OF THING. SO THAT'S WHY THE AVERAGE WAIT TIME TO RECEIVE ASSISTANCE VARIES BECAUSE OUR LOCAL NEED IS SO BIG. IF SOMEONE IS FROM OUT OF STATE AND FROM THAT WAITING LIST, THEIR WAIT TIME IS GOING TO BE LONGER. OUR VOUCHER AND PUBLIC HOUSING PROGRAMS IN GENERAL HAVE AN APPROXIMATE WAIT TIME OF 18 TO 36 MONTHS OR MORE, EXCEPT ONE BEDROOM PUBLIC HOUSING UNITS. BECAUSE WE HAVE SO FEW OF THEM AND THE WAITING LIST IS SO LONG. AND WHO IS IN OUR ONE BEDROOM UNITS, OUR ELDERLY AND DISABLED POPULATION BY AND LARGE. AND SO THEY ARE NOT A PUBLIC HOUSING RESIDENT THAT IS IN THE SAFETY NET BEING CAUGHT GETTING ON THEIR FEET, CHANGING THEIR EMPLOYMENT OPPORTUNITIES AND MOVING INTO THE MARKET. THESE ARE OUR HOUSEHOLDS THAT ARE HERE AND THEY HAVE THEIR INCOME, WHETHER IT BE DISABILITY OR SOCIAL SECURITY, AND THEY ARE WITH US OFTEN UNTIL THEY PASS AWAY UNFORTUNATELY. UNFORTUNATELY FOR THEM PASSING AWAY NOW THAT [INAUDIBLE] WITH US. AND SO THE WAIT TIMES FOR ONE BEDROOM PUBLIC HOUSING UNITS ARE VERY, VERY LENGTHY. IN ANSWER TO THE MAYOR'S QUESTION, IN OUR HOUSING CHOICE VOUCHER PROGRAM, WE HAVE 2,052 AS OF MONDAY THIS WEEK, 577 OF THOSE ARE SELF IDENTIFIED AS BEING ELIGIBLE FOR OUR MAINSTREAM ALLOCATION, MEANING A NON ELDERLY DISABLED MEMBER IN THAT HOUSEHOLD. AND SO TALKING ABOUT WAIT TIMES FOR PUBLIC HOUSING OR HOW MANY IS NOT AS EASY SIMPLY BECAUSE WE HAVE TO, HUD INSISTED THAT WE SEPARATE OUR DEVELOPMENTS INTO AMPS, WHICH IS MANAGEMENT AREAS. SO WE HAVE A WEST SIDE AND THE EAST SIDE LIST? EAST SIDE BEING THE SILER FOCUS WEST SIDE BEING BRANNEN FOCUSED. AND SO IN THESE NUMBERS, HOUSEHOLDS CAN BE ON BOTH AND QUITE OFTEN HOUSEHOLDS WHEN THEY ARE APPLYING SAY, I DON'T CARE WHICH SIDE OF TOWN I LIVE ON, SIGNED ME UP FOR BOTH. SO WHEN I TALK ABOUT THESE NUMBERS, THEY ARE NOT UNIQUE. AND THEY ARE NOT. AND THEY'RE DIVIDED BY BEDROOM SIZE. AND SO SOMETIMES A FAMILY OF FOUR WILL SAY WE'D BE GREAT IN A THREE BEDROOM, BUT WE'D ALSO TAKE A TWO BEDROOM. AND SO, AGAIN, THOSE NUMBERS MAY NOT BE UNIQUE. SO I'M GOING TO GIVE YOU THE EXAMPLE FOR OUR WEST SIDE NUMBERS, FOR OUR ONE BEDROOMS. WE HAVE 853 HOUSEHOLDS ON THAT LIST. TWO BEDROOM IS 669. OUR THREE BEDROOMS ARE 431 AND OUR FOUR BEDROOMS ARE 238. SO YOU CAN SEE THAT NUMBER DECLINE AS WE GO UP IN UNIT SIZE. AND SO IF YOU'RE ON THE FOUR BEDROOM WAITING LIST, YOU WERE LIKELY TO BE SERVED ON IT AND ELIGIBLE FOR A FOUR BEDROOM. YOU'RE LIKELY TO BE SERVED SOONER THAN A HOUSEHOLD THAT NEEDS A ONE OR TWO BEDROOM UNIT. OUR NUMBERS ON THE WEST SIDE ARE SIMILAR, EXCEPT ON THE WEST I'M SORRY NOT WEST ON THE EAST SIDE ARE SIMILAR. THERE'S 676 FOR TWO BEDROOMS, 437 FOR THREES, 168 FOR FOUR BEDROOMS. AND THEN WE HAVE SOME FIVE BEDROOM UNITS AND THERE ARE 83 ON THAT LIST. SO AGAIN, SOME OF THESE ARE LOCAL, SOME OF THEM ARE NOT. WE SERVE OUR LOCAL FOLKS FIRST. SO SOME OF THOSE WAIT TIMES WILL BE LESS THAN OTHERS WILL BE MORE THAN. I TYPICALLY HAVEN'T GONE INTO THIS LEVEL OF DETAIL IN DESCRIBING WAITING LISTS, BUT I PUT IT IN MY NOTES TODAY, ONE IN CASE SOMEBODY ASKED A QUESTION. [02:40:08] AND TWO, BECAUSE I THINK IT'S IMPORTANT FOR OUR POLICYMAKERS AND FOR OUR COMMUNITY TO UNDERSTAND WHAT THAT VERY NEED LOOKS LIKE BASED ON UNIT SIZE. AND IT IS HARD TO GIVE A NUMBER BECAUSE WE KNOW THAT THERE ARE DUPLICATED HOUSEHOLDS WITHIN EAST AND WEST AND SOMETIMES WITHIN SIDE BY SIDE UNIT SIZES. SARAH I THINK I SEE YELLOW SQUARES LIGHTING UP. YES. IT LOOKS LIKE COUNCILMEMBER MATTHEWS HAS A QUESTION. THANK YOU, MAYOR. SO I WAS CURIOUS BECAUSE I KNOW THIS IS AN ISSUE ACROSS THE BOARD WITH SHELTER AND TRANSITIONAL HOUSING REGARDING FOLKS COMING IN FROM OUTSIDE THE AREA. DO YOU HAVE THE NUMBER OFF THE TOP OF YOUR HEAD HOW MANY PEOPLE WE HOUSED THAT LIVED OUTSIDE OF THE AREA THAT'S COMING INTO FLAGSTAFF OVER THE LAST YEAR? BECAUSE WE HAVE THE LOCAL PREFERENCE. AND SO WE HOUSE OUR LOCAL RESIDENTS FIRST AND WE HAVEN'T RUN OUT OF LOCAL RESIDENTS TO HOUSE, WHICH MAY ALLOW US TO MOVE ON TO OTHERS. OKAY GOOD. SO AT FIRST I WAS LIKE, OH, I DON'T THINK I CAN ANSWER THAT. THEN YOU FINISHED IT AND I'M LIKE, NO, I CAN'T. THANKS, SARAH. WITH THE EXCEPTION OF VOUCHERS, SO VOUCHERS, ANY VOUCHER, WE ISSUE GOES TO A LOCAL HOUSEHOLD FIRST WITH THOSE VOUCHERS BEING ATTACHED TO PEOPLE NOT TO UNITS OR PORTABLE. SO HOUSEHOLD CAN TAKE IT WITH THEM. SO WE ACTUALLY HAVE MORE THAN OUR VOUCHERS FUNCTIONING IN THE COMMUNITY. WE ADMINISTER THEM, BUT THOSE FEES ARE PAID BY THEIR HOME HOUSING AUTHORITY. SO BUT AGAIN, WE DON'T HAVE A CHOICE WHETHER TO TAKE THOSE OR NOT, BUT THEY'RE NOT UTILIZING LOCAL RESOURCES. THEY'RE UTILIZING THE RESOURCES OF THE HOUSING AUTHORITY THEY CAME FROM. THANK YOU, SARAH. YOU ARE WELCOME. IT LOOKS IT LOOKS LIKE COUNCILMEMBER HARRIS HAS A QUESTION AND A COMMENT. SORRY, I HAD TO GET TO MY MIC. MADAM MAYOR AND COUNCIL MEMBERS, THIS IS NOT ABOUT THE PRESENTATION. THIS IS SOMETHING ELSE. I'M LOOKING AT THE WEATHER AND I'M CONCERNED ABOUT PEOPLE GETTING HOME SAFELY. ARE WE AT A POINT WHERE WE MIGHT BE ABLE TO RECESS AND DO SOMETHING? I DON'T KNOW WHAT THE PROPER PROTOCOL WOULD BE, BUT I'M LOOKING OUT MY WINDOW AND IT LOOKS PRETTY BAD. THANK YOU. COUNCILMEMBER AND DID YOU HAVE A? NO. NO QUESTION FOR HER. OKAY. THANK YOU. THANK YOU. CITY MANAGER DID. WE ARE AT YOUR PLEASURE, MAYOR. I'M NOT AWARE OF THE WEATHER, BUT I'M BEING TOLD THAT IT'S PRETTY BAD. BUT I MEAN, WE COULD RECESS AND TALK THIS OVER, IF YOU LIKE. YEAH. I'M SORRY. JUST SECONDING MEMBER HARRIS. IT'S PRETTY GNARLY OUTSIDE RIGHT NOW. YOU MIGHT WANT TO GO TAKE A LOOK, EVEN IF IT NECESSITATES A FIVE MINUTE BREAK. I DON'T WANT TO LOOK BECAUSE THEN I'LL GET NERVOUS. SO YOU HAVE THE INFORMATION. TOTALLY UP TO YOU GUYS. IT'S THERE. IT SEEMS TO ME THAT IF WE DON'T FINISH UP TONIGHT, THEN IT JUST ADDS THIS TO A LATER AGENDA, WHICH IS ALSO FILLED UP. SO MY INCLINATION WOULD BE TO GO AHEAD AND FINISH. BUT DOES ANYONE ELSE IN ATTENDANCE FEEL DIFFERENTLY? MADAM MAYOR, WE NOT ONLY COUNCIL MEMBERS, BUT THE STAFF THAT ARE THERE. YEP, I ASK STAFF AS WELL. I DON'T KNOW IF THIS IS AN OPTION, BUT THERE COULD BE A RECESS LONG ENOUGH TO ALLOW PEOPLE TO GET HOME AND WE COULD RESUME FULLY REMOTE. FOR THOSE WHO WANT TO LEAVE. JUST ANOTHER THOUGHT. I WOULDN'T HAVE BROUGHT THIS UP. BUT I THINK IT'S INTERESTING THAT COUNCILMEMBER HARRIS HAS CONCERN FOR EVERYBODY. I APPRECIATE THAT FROM HER. SO I HEARD WHISPERING, IS THIS ANYTHING THAT WE NEED TO KNOW ABOUT? THE CITY CLERK IS SHARING THAT THE REMAINING ITEMS ON THE AGENDA LIKELY COULD BE [02:45:01] DEFERRED TO A FUTURE MEETING. RECOGNIZING YOUR DESIRE, MAYOR TO GET THROUGH THE REMAINDER OF THE HOUSING. BUT ITEMS SIX AND SEVEN. WE COULD FIND ANOTHER TIME NEXT WEEK. OKAY. WONDERFUL. THANK YOU. THANK YOU. OKAY, SO BACK TO YOU, SARAH, AND NO PRESSURE ON YOU. AFTER THIS CONVERSATION WE'VE ALL JUST HAD. I WILL SPEAK AT ONE AND A HALF TIMES MY NORMAL PACE WITH THAT ONE. THE NEXT TIME I'M GOING TO TALK ABOUT STUFF YOU'RE WAY MORE FAMILIAR WITH. SO I'M GOING TO FLY PRETTY HIGH OVER SOME OF IT. YOU DID SAY I WAS GOOD TO KEEP GOING. YES, MA'AM, I DID. AND NOW I SEE STERLING'S HAND UP. AND I DON'T KNOW IF STERLING HAD SOMETHING THAT HE WANTED TO SAY. OH, JUST THANK YOU, MAYOR. JUST FROM A LEGAL PERSPECTIVE, THERE'S NO PROBLEM WITH RECESSING THE MEETING AND RESUMING IT IN A HYBRID BASIS. ONLY YOU'RE STILL GOING TO HAVE PEOPLE FROM THE CLERK'S OFFICE AT CITY FACILITIES. IF YOU DO THAT. I KNOW. BUT LIKE THE CITY MANAGER SAID, THE CITY IS AT THE COUNCIL'S PLEASURE. OKAY. THANK YOU VERY MUCH. ALL RIGHT. SO, SARAH, SORRY FOR THE INTERRUPTION. AND YES, YOU ARE GOOD TO CONTINUE. ALL RIGHT. I APPRECIATE THE CONCERN AS WELL. SO THANK YOU, COUNCIL MEMBER HARRIS. ALL RIGHT, HERE WE GO. OUR HOUSING SECTION PROGRAMS, WE USED TO CALL THESE THE CITY HALL PROGRAMS, BUT THEY MOVED OUT OF CITY HALL AND NOW WE CALL THEM THE HOUSING SECTION PROGRAMS, ALTHOUGH SOME OF US STILL CALL THEM THE CITY HALL PROGRAMS. IF YOU HEAR ME SAY THAT, THIS IS WHAT I'M TALKING ABOUT. SO THE HOUSING SECTION WAS FIRST STAFFED IN 1993 WITH ONE STAFF PERSON, THE SECOND STAFF PERSON THAT WAS ME. I WAS AT IT IN 2000. THERE'S NOW SIX STAFF IN MORE THAN A DOZEN PROGRAMS, AND THEIR OFFICE IS LOCATED OVER IN THE WATER SERVICES BUILDING, AS I REFERENCED EARLIER. SO I'M NOT GOING TO TALK ABOUT SOME OF THESE BECAUSE YOU'VE ALREADY HEARD ABOUT IT, SPECIFICALLY CDBG. AND SO KRISTINE PAVLIK WAS IN FRONT OF YOU IN JANUARY. SHE'LL BE BACK IN APRIL WITH THE RESULTS OF THE THE SOLICITATION, THE PROPOSAL, SOLICITATION PROCESS. THOSE ARE DUE MARCH 1ST. SO ANYBODY LISTENING? HERE'S A REMINDER OF YOUR DEADLINE. THOSE PROPOSALS ARE DUE ON MARCH 1ST. THEY'LL THEN BE RANKED AND THEN BROUGHT BACK TO YOU COUNCIL FOR A DECISION. WE DO HAVE A PERMANENT AFFORDABILITY PROGRAM THAT ENCOMPASSES BOTH LAND TRUST UNITS AND DEED RESTRICTED UNITS WITH THE INTENT OF MAKING THE UNITS PERMANENTLY AFFORDABLE SO THAT SUBSIDY STAYS IN SOME WAY. IN A LAND TRUST UNIT THAT SUBSIDY STAYS IN THE LAND AND THE UNIT AND THE LAND OR THE THEN THE UNIT IS SOLD AT A PRICE THAT WOULD BE AFFORDABLE TO A HOUSEHOLD LIKE THE ONE THAT PURCHASED IT. THAT COMES WITH LONG TERM COMPLIANCE MANAGEMENT. WHEN WE GO INTO WHEN THERE'S A HOUSE CLOSING AT FOR, LET'S SAY FOR A LAND TRUST UNIT OR A DEED RESTRICTED UNIT, THAT'S REALLY THE BEGINNING OF OUR RELATIONSHIP AS WE HAVE LONG TERM RESPONSIBILITIES BEING THE THE LEASEHOLDER OF THE LAND UNDER THE OWNERSHIP UNIT, WE HAVE DOWN PAYMENT AND ASSISTANCE PROGRAM PAYMENT AND CLOSING COST ASSISTANCE PROGRAMS. I THINK I DELETED AND CLOSING COST FOR THE SAKE OF SPACE. WE HAVE, THANK YOU. CITY COUNCIL AND EMPLOYER ASSISTED HOUSING PROGRAM SPECIFIC FOR CITY EMPLOYEES. WE HAVE HAD SUCCESS WITH THIS OVER THE YEARS AND THEN ALSO A COMMUNITY HOMEBUYER ASSISTANCE PROGRAM. WE CALL IT CHAP, AND THIS HAS BEEN TYPICALLY FUNDED WITH GENERAL FUND DOLLARS, WHICH ALLOWS US TO SERVE HOUSEHOLDS UP ABOVE THAT 80% OF AREA MEDIAN INCOME. AND SO WHAT WE'VE FIGURED OUT THOUGH, OVER TIME IS THAT THE CITY GENERAL FUND CANNOT ALWAYS SUPPORT PROGRAM ALLOCATIONS TO A PROGRAM SUCH AS THIS. AND SO THIS IS ONE OF THE ITEMS THAT WAS APPROVED TO BE INCLUDED WITH THE HOUSING BOND. AND SO THIS PROGRAM WILL PROVIDE THE FRAMEWORK. I HAVE A SLIDE ON BOND LATER. I PROMISE TO GIVE YOU THAT OVERVIEW AND. SORRY. SOME OF MY DEVICES STARTED TO DIE, BUT NOW I'M SET. SO THAT COMMUNITY HOMEBUYER ASSISTANCE PROGRAM IS TYPICALLY NOT BEEN ADMINISTERED BY US. IT'S FUNDED AND OVERSEEN BY THE CITY AT THIS LEVEL, BUT ADMINISTERED BY HOUSING SOLUTIONS OF NORTHERN ARIZONA, WHO HAS DONE A PHENOMENAL JOB WITH THIS OVER THE YEARS. [02:50:09] THEY ARE A HUD CERTIFIED HOUSING COUNSELING AGENCY. WE ARE NOT, WHICH IS JUST FINE BECAUSE THAT'S NOT TYPICALLY A ROLE OF A LOCAL GOVERNMENT. WE HAVE HOUSING PLANNING AND DEVELOPER NEGOTIATIONS. WE WORK HAND IN HAND WITH OUR PLANNING AND DEVELOPMENT SERVICES GROUP. AS YOU'LL SEE, AS YOU SEE DIFFERENT ITEMS COME BEFORE YOU FOR DEVELOPMENT AGREEMENTS AND THERE'S AN AFFORDABLE HOUSING CONTRIBUTION. WE HAVE STAFF THAT WORK ON THIS WITH PLANNING AND WITH LEGAL, SPECIFICALLY WITHIN NEGOTIATING WITH DEVELOPERS, BECAUSE OF COURSE A STATE LAW PROHIBITS US FROM REQUIRING THAT THEY CONTRIBUTE. BUT WE CAN ASK AND WE. AND OUR ASK SOUNDS SOMETHING LIKE, HOW WOULD YOU BE INTERESTED IN CONTRIBUTING TOWARDS THE AFFORDABLE HOUSING NEEDS FOR OUR COMMUNITY? WE HAVE INCENTIVE POLICY FOR AFFORDABLE HOUSING. I GOT A WHOLE SLIDE ON IT FOR YOU IN JUST A COUPLE OF SPOTS, BUT THAT IS SOMETHING THAT WE ALSO OVERSEE. AND SO I KEPT USING THE WORD LOAN. WITH LOANS COME LOANS MANAGEMENT. AND SO WE ACTUALLY HAVE A LOAN PORTFOLIO THAT WE MANAGE. WE DO OWN OUR OCCUPANCY CERTIFICATIONS TO MAKE SURE THAT THOSE HOMES ARE STILL BEING OCCUPIED BY THE HOUSEHOLD THAT PURCHASED IT. AND IF IT'S NOT, THEN WE START REPAYMENT PROCESSES. IF SOMEONE IS TRYING TO REFINANCE THEIR HOME, IF IT'S FOR CASH OUT, THE ANSWER IS NO. UNLESS YOU PAY US BACK, YOU PAY US BACK WE TAKE OUR CASH [INAUDIBLE]. YOU GOT TO PAY THE COMMUNITY BACK FIRST. IF IT IS A REFINANCING FOR LOWERING RATE OR PAYMENT, WE WILL UNDERWRITE THAT TO ENSURE THAT THE PUBLIC'S INVESTMENT IN THAT HOUSEHOLD AND UNIT IS PROTECTED AND STILL. AND IF IT IS, THEN WE SUBORDINATE TO THE NEW FIRST MORTGAGE. SO THAT IS SOMETHING THAT I DON'T THINK A LOT OF FOLKS REALIZE THAT WE DO WHEN SOMEONE IS WORKING TO REFINANCE THEIR HOME. SO COMMUNITY PARTICIPATION I PUT THIS IN HERE BECAUSE WE WORK WITH A LOT OF DIFFERENT GROUPS IN THE COMMUNITY. WE SIT ON ON MULTIPLE DIFFERENT ADVISORY BOARDS, SUCH AS THE COMMUNITY ACTION BOARD THROUGH THE COUNTY. WE SIT IN AN ADVISORY CAPACITY FOR SOME NONPROFIT BOARDS. WE REALLY WORK TO AVOID A CONFLICT OF INTEREST WITH ANY AGENCY THAT WOULD BE APPLYING TO US FOR FUNDING. BUT SITTING IN AN ADVISORY NON VOTING PIECE IS SOMETHING THAT WE WILL DO. WE ALSO WE PARTICIPATE WITH THE CONTINUUM OF CARE, THE FRONT DOOR EFFORT. WE HAVE STAFF THAT WORK WITH THE ARIZONA HOUSING COALITION ON A STATE LEVEL. SO WE WORK TO STAY INVOLVED WITH OUR COMMUNITY PARTNERS AND SUPPORT WHERE WE CAN AND WHERE IT'S APPROPRIATE. WE DO PROVIDE TECHNICAL ASSISTANCE NOT ONLY FOR THOSE UTILIZING OUR MONEY, OUR MONEY, HUD'S MONEY, CITY GENERAL FUND MONEY, BUT ALSO FOR OTHERS IN THE COMMUNITY THAT MAY BE UTILIZING A SIMILAR FUNDING SOURCE AND AREN'T QUITE SURE HOW TO STAY IN COMPLIANCE OR WE HAVE DREAM MEETINGS. WE HAVE MEETINGS WHERE WE'LL SIT DOWN WITH A NONPROFIT DIRECTOR AND OR DEVELOPMENT DIRECTOR AND THEY'RE LIKE, THIS IS WHAT WE REALLY WANT TO DO. AND SO IF ANY OF OUR FUNDING SOURCES ARE NOT APPROPRIATE FOR THIS, WE WORK TO CONNECT THEM WITH FUNDING SOURCES THAT COULD BE AND THEN WORK TO SUPPORT THEM IN ANY WAY WE CAN AS THEY PURSUE THAT. THAT OFTEN COMES IN THE FORM OF A SUPPORT LETTER. IT'S NOT US GRANT WRITING, IT'S NOT US STANDING ON THE SIDELINES WITH POMPOMS. IT'S TYPICALLY A LETTER OF SUPPORT, ACKNOWLEDGING THE NEED WITHIN THE COMMUNITY CONSISTENT WITH OUR IDENTIFIED DOCUMENTS. WE ARE ALSO CONSIDERED TO BE HUD'S ARM WITHIN OUR COMMUNITY. SO WE ARE THE DESIGNATED FAIR HOUSING RESOURCE WITHIN OUR COMMUNITY. AND WE'LL BE IN FRONT OF YOU IN APRIL IS FAIR HOUSING MONTH AND WE'LL BE IN FRONT OF YOU WITH A PROCLAMATION. AND WE OFTEN HOST FAIR HOUSING TRAININGS IN CONJUNCTION WITH THE SOUTHWEST FAIR HOUSING COUNCIL IN THAT MONTH. AND THEN MY LITTLE HIGH END NEW HERE OVER HERE ON THE OTHER SIDE IS THE TEN YEAR PLAN IMPLEMENTATION AND HOUSING BOND PROGRAMS. SO THESE ARE FALLING WITHIN THE ADMINISTRATION OF THE HOUSING SECTION STAFF. THAT WAS THE SIX PEOPLE OVER ON THE LEFT HAND SIDE. THESE ARE NEW TO US. THANK YOU. WE'RE EXCITED ABOUT THEM. DON'T GET ME WRONG. THESE ARE NEW TO US. THESE ARE NEW TO YOU. AND I WILL BE UPDATING ON THOSE IN JUST A MOMENT. BUT THOSE ARE OUR NEW PIECES AND THOSE ARE SOME FAIRLY SIGNIFICANT NEW PIECES. SO WE HAVE APPRECIATED YOUR PATIENCE AS WE GET OUR FEET UNDERNEATH US WITH THE TEN YEAR PLAN. AND WE HAVE AN OUTLINE FOR IMPLEMENTING HOUSING BOND PROGRAMS. IT'S GOING TO DEPEND SOMEWHAT ON OUR RESOURCES, BUT ALSO THE RESOURCES OF OUR INTERNAL PARTNERS WITH PROCUREMENT [02:55:05] AND LEGAL AND FINANCE. IT'S NOT HOUSING SECTION BY ITSELF. I DON'T EVER WANT TO THINK OR HAVE YOU THINK THAT WE DO THESE ALL BY OURSELVES. WE DON'T. WE ARE SUPPORTED BY A FABULOUS TEAM WITHIN THE ORGANIZATION. HERE'S SOME INFORMATION I PROMISED ON THE INCENTIVE POLICY. SEE THE TIMELINE OF INCENTIVE POLICY ON THE LEFT. WHEN IT WAS ADOPTED IN 2019, THERE WAS ACTUALLY A POLICY BEFORE THIS ADOPTED IN 2001 CALLED THE SET ASIDE POLICY. IT WAS USED ONE TIME. MY PREDECESSOR UTILIZED IT WITH ONE DEVELOPMENT. IT WASN'T SUPER CLEAR, IT DIDN'T MAKE A LOT OF SENSE. AND SO IT WAS WE REDID IT IN 2009, AND THAT WAS JUST THE POLICY PIECES, MEANING THE FINANCIAL INCENTIVES. SOME THINGS THAT WE CAN DO, LIKE WE CAN DEFER BUILDING PERMIT FEES IF THEY DON'T HAVE FUNDING TO PAY UPFRONT, IF THEY'RE INCLUDING AFFORDABLE HOUSING, BUT THEY HAVE TO PAY THEM BEFORE CERTIFICATE OF OCCUPANCY, THAT TYPE OF THING. THERE'S SOME ADMINISTRATIVE THINGS IN THERE. WE ADDED THE REGULATORY PIECE IN 2011 THAT SITS WITHIN THE FLAGSTAFF ZONING CODE. YOU'VE HEARD ABOUT THAT MULTIPLE TIMES AND ESPECIALLY LAST YEAR IN 2001, WHEN THERE WAS AN ADDED REGULATORY INCENTIVE FOR 100% AFFORDABLE PROJECTS. WITH THE TEN YEAR HOUSING PLAN LAST YEAR, THAT TEN YEAR HOUSING PLAN INCLUDES STRATEGIES SURROUNDING A REGULATORY REVIEW OF ALL OF OUR REGULATIONS, INCLUDING INCENTIVES. WE'VE DONE QUITE A BIT OF COMMUNITY OUTREACH HERE, AND I WOULD LIKE TO GIVE SOME RECOGNITION TO JEN MIKELSON, WHO IS OUR HOUSING ANALYST, WHO HAS PUT QUITE A BIT OF EFFORT INTO TALKING TO DEVELOPERS, TALKING TO COMMUNITY PARTNERS ABOUT WHAT HAS WORKED IN HERE, WHAT HASN'T WORKED IN HERE. WE HAVE SEVERAL HUNDRED UNITS IN THE COMMUNITY AS A RESULT OF THE INCENTIVE POLICY. IN THE MOST RECENT YEAR, WE HAVE PROVIDED INCENTIVES FOR 192 UNITS THAT ARE EITHER CURRENTLY UNDER DEVELOPMENT OR IN THEIR EARLY DEVELOPMENT PHASES. AND SO WHILE IT FUNCTIONS, IT WORKS, IT PROVIDES SOME INCENTIVES. WE KNOW THAT IT COULD BE BETTER, AND THAT'S PART OF THE REGULATORY REVIEW. SO WHERE ARE STANDARDS? IT REQUIRES A MINIMUM OF A 10% CONTRIBUTION. IT CAN SERVE INCOME LIMITS UP TO 150% AMI FOR OWNERSHIP AND 100% AMI FOR RENTALS. THE INTENT HERE IS THAT IT DOESN'T COMPETE WITH THE MARKET BECAUSE IF SOMEONE CAN PURCHASE A MARKET RATE HOME, THEY SHOULD PURCHASE A MARKET RATE HOME. BUT WE WANTED TO GIVE THAT 150 AMI FOR OWNERSHIP SO THAT THERE WAS SOME LONGEVITY, THERE WAS SOME BUILT IN FLEXIBILITY OVER TIME FOR SERVING HOUSEHOLDS, AS OUR INCOME LEVELS CHANGE. THERE'S A MINIMUM REQUIRED PERIOD OF AFFORDABILITY, 99 YEARS FOR OWNERSHIP AND 30 YEARS FOR RENTAL. ONE OF THE WEAKNESSES WITHIN THE CURRENT INCENTIVE POLICY, AS IT IS ONLY FOR PERMANENTLY AFFORDABLE UNITS, THERE ARE SOME OF THE REGULATORY INCENTIVES THAT ARE BUILT IN FOR ONE TIME AFFORDABLE OR ONE TIME PLUS [INAUDIBLE], THAT TYPE OF THING. BUT WITHIN THE POLICY INCENTIVES, IT'S ONLY FOR PERMANENTLY AFFORDABLE. AND WHILE THAT'S FABULOUS, STAFF FEELS THAT THERE'S ALSO ROOM TO INCENTIVIZE OTHER FORMS OF AFFORDABILITY THAT MAY NOT MEET THE FULL DEFINITION OF PERMANENT. SO YOU'LL SEE THAT COMING BEFORE YOU. IT WILL BE THIS YEAR BECAUSE THE REGULATORY REVIEW IS THIS YEAR. BUT IN THE NEXT I'M GOING TO GO 18 MONTHS. BUT THAT'S STILL PRETTY OPTIMISTIC. OH, I WANT TO GO BACK AND PAUSE RIGHT THERE. AND ASK IF THERE'S ANY QUESTIONS? AND THEN WE'RE IN THE HOME STRETCH. I PROMISE YOU. I DON'T SEE ANY QUESTIONS. OKEY DOKEY. OOP, WE JUST GOT ONE. REAL QUICK. IN OCTOBER, I THINK THERE WAS AN ARTICLE IN THE PAPER THAT SAID THAT WE WERE REVIEWING POLICY AND PERMIT AND BUILDING FEES. IS THIS THE SAME THING THAT YOU'RE TALKING ABOUT HERE IN THE SLIDE? AND IF SO, HAVE WE STARTED IT? AND THANK YOU FOR THE QUESTION. THAT IS NOT THE SAME THING I'M TALKING ABOUT IN THE SLIDE. THE FEE. THE FEE PIECE IS A SEPARATE PIECE. THIS IS AN OVERALL EXAMINATION OF ALL OF OUR REGULATIONS RELATED TO BUILDING FOR BOTH WITH BOTH A HOUSING LENS AND A SUSTAINABILITY LENS. AND I HAVE A LITTLE BIT MORE INFORMATION BECAUSE THIS IS PART OF IMPLEMENTATION OF THE 10 YEAR PLAN, BUT THE FEE PIECE IS A SEPARATE PIECE. [03:00:07] THANK YOU, SARAH. YOU'RE WELCOME. ALL RIGHT. YEAH. UPCOMING. SO HOUSING SECTION NEWSLETTER. OUR SUPER DEDICATED STAFF HAS UNDERTAKEN DEVELOPING THE HOUSING SECTION NEWSLETTER. I HOPE THAT IT HAS BEEN, I WOULD SAY, A JOY TO READ, BUT MAYBE THAT'S JUST ME. THERE'S A NEW EDITION COMING NEXT WEEK, AND IN THAT NEW EDITION IS OUR 2022 YEAR END SUMMARY, YEAR END REVIEW. AND SO THAT IS COMING TO YOU WITHIN THE NEXT WEEK. I SAW AN ALMOST FINAL DRAFT OF IT TODAY, AND I FORGET HOW MUCH WE DO BECAUSE IT'S JUST HEAD DOWN AND DO IT, BUT I THINK YOU'LL BE EXCITED TO SEE IT IN THE NEXT WEEK. LET ME KNOW IF YOU'RE EVER READING THAT AND YOU HAVE QUESTIONS OR IT SPURRED NEW THOUGHTS OR IDEAS BUT THIS IS A KUDOS FOR HERE REALLY GOES TO THE STAFF WITHIN THE HOUSING SECTION OFFICE THAT COMPILE ALL THE INFORMATION AND PUT THAT TOGETHER. IT WAS ADRIANA I'LL INTRODUCE HER IN A MOMENT, BUT. KRISTINE PAVLIK AND MARISSA MOLLOY ARE CURRENT TWO EMPLOYEES THAT PUT TOGETHER OUR NEWSLETTER. ALL RIGHT, WHERE HAVE WE BEEN? COUNCIL 22 WAS A BIG YEAR FOR US, SO NOT ONLY DID WE HAVE THE 10-YEAR PLAN ADOPTED BY CITY COUNCIL ON FEBRUARY 15TH, WHICH IS A YEAR TOMORROW, BUT ALSO ON JUNE 21ST, COUNCIL PLACED PROPOSITION 442 ON THE BALLOT, WHICH PASSED ON NOVEMBER 8TH. SO THESE ARE TWO MASSIVELY FABULOUS THINGS THAT CONTAIN A LOT OF WORK WITHIN THEM. SO WE WANTED TO GIVE YOU AN OVERVIEW OF WHAT THAT WORK LOOKS LIKE IN THE COMING MONTHS. SO I WANTED TO TAKE A SECOND AND TALK ABOUT THE EVOLUTION OF HOUSING FOCUS THAT I HAVE NOTICED WITHIN MY TENURE WITH THE CITY. I'VE BEEN HERE 22 YEARS AND CHANGE AT THIS POINT IN TIME. AND I'M REALLY FOCUSING ON THE LAST FIVE OR SIX YEARS. SO IN THE PAST, OUR DIRECTION FROM COUNCIL HAS BEEN REALLY FOCUSED ON AFFORDABLE HOUSING AND WE STAYED IN OUR OWN LITTLE CIRCLE AND IT WAS AFFORDABLE HOUSING, AFFORDABLE HOUSING, AFFORDABLE HOUSING. IT WAS AWESOME. DON'T GET ME WRONG, BUT OUR LANGUAGE HAS CHANGED. AND AS I STARTED LOOKING AT DOCUMENTS, SO THE ORDINANCE CREATING THE HOUSING COMMISSION, THE THE LANGUAGE THE COUNCIL REQUESTED WAS ON A FOCUS OF HOUSING OVERALL, NOT JUST AFFORDABILITY. AFFORDABILITY IS MENTIONED WHEN WE WERE WORKING ON THE REGIONAL PLAN, WE WORKED HARD TO TALK ABOUT HOUSING FOR ALL WITH A MENTION OF THE IMPORTANCE OF AFFORDABILITY. BUT WE REALLY NEED HOUSING FOR EVERYONE IN OUR COMMUNITY, ALL INCOME LEVELS, ETC.. SO FURTHER BOLSTERED WAS THAT THE HOUSING EMERGENCY DECLARATION TALKS ABOUT HOUSING SUPPLY, THE EXTENSIVE COMMUNITY, THERE WAS EXTENSIVE COMMUNITY INPUT DURING THE TEN YEAR PLAN CREATION PROCESS THAT WAS ALSO FOCUSED ON THIS. AND MOST RECENTLY WE'VE SEEN THE STATE START TO PAY ATTENTION TO HOUSING SUPPLY ISSUES WITH THEIR INTERIM STUDY COMMITTEE LOOKING AT HOUSING SUPPLY. AND SO WE ARE EVOLVING IN WHAT WE'RE DOING AS STAFF FROM AFFORDABLE IN A LITTLE BOX OR A SILO OR A CIRCLE TO LOOKING AT INVENTORY OVERALL, TO TALKING ABOUT THE CREATION OF HOUSING UNITS, TO TALKING ABOUT THE CREATION OF INVENTORY IN THE COMMUNITY. AND THIS IS SOMETHING THAT I WANTED TO ACKNOWLEDGE BECAUSE WE'VE BEEN HEARING IT FROM COUNCIL FOR A WHILE, BUT WE'VE NEVER SAID, OH, LIGHT BULB MOMENT, WE ARE GROWING, WE'RE EVOLVING. ARE WE GOING TO STOP FOCUSING ON AFFORDABLE? ABSOLUTELY NOT. BUT WE ARE STARTING TO HAVE LARGER CONVERSATIONS ABOUT INVENTORY, AND THAT IS BASED ON THE COUNCIL DIRECTION WE'VE RECEIVED OVER THE PAST FEW YEARS. AND SO WITH THAT IN MIND, I SHARE WITH YOU. THE KING, OUR HOUSING PLAN AND THE DOCUMENTS THAT WE WILL BE SENDING YOU TOMORROW. SO IF ADRIANA FISHER CAN TURN ON HER CAMERA, I WOULD LIKE TO INTRODUCE HER. ADRIANA FISHER WHILE HAVING BEEN A CITY EMPLOYEE FOR A NUMBER OF YEARS IS OUR NEW. I'M GOING TO GET HER TITLE WRONG. OUR NEW LEAH BLOOM, FOR LACK OF A BETTER TERM, OUR HOUSING PROJECT MANAGER. AND SO ADRIANA IS NEW TO HER POSITION BUT NOT NEW TO US IN THE ORGANIZATION. ALL THE GRAPHICS I'M GOING TO SHOW YOU IN A MOMENT ARE HER FABULOUS WORK WITH SOME SUPPORT FROM HER PEERS IN THE HOUSING SECTION, AND SHE IS THE FACE YOU WILL [03:05:02] SEE FROM NOW ON AFTER TODAY RELATED TO THE 10 YEAR HOUSING PLAN AND ITS IMPLEMENTATION. I'M TAKING TODAY BECAUSE THIS FIRST YEAR IS A LITTLE WONKY. AND SO I WANTED TO HAVE AN OPPORTUNITY TO EXPLAIN IT. SHE'S ALSO PRETTY NEW IN HER POSITION AS FAR AS THESE, BUT SHE'S LEARNING FAST AND WE'RE SO GRATEFUL TO HAVE HER. SO DID SHE WAVE AT YOU ALL? I HOPE SHE WAIVED. ALL RIGHT. SO COUNCIL LAST YEAR, A YEAR AGO TOMORROW, WE ADOPTED A TEN YEAR HOUSING PLAN. WE WENT STRAIGHT INTO IN MAY, LEAH RESIGNED TO TAKE A FABULOUS POSITION AT NAU, WHICH LEFT US WITHOUT A STAFF PERSON FOCUSED ON THIS. SO WE DIDN'T STOP BECAUSE THE BOND WAS A BIG PIECE OF RECOMMENDATIONS IN THE HOUSING PLAN. SO WE CONTINUED MOVING FORWARD WITH PROGRESS, BUT WE DID NOT GET AN IMPLEMENTATION PLAN OUT LIKE WE ANTICIPATED WE'D BE ABLE TO. SO HERE'S WHAT WE'RE PRESENTING TO YOU THIS EVENING. WE'RE GOING TO GIVE YOU A PROGRESS REPORT ON 2022. BUT BECAUSE BY THE END OF 2022, IT WASN'T A FULL YEAR AND WE INTEND TO BE REPORTING ON. EXCUSE ME. WE INTEND TO BE REPORTING ON A FISCAL YEAR BASIS TO COINCIDE WITH BUDGET SO WE CAN SEE THOSE DIRECT LINKAGES BETWEEN FUNDING AND RESULTS. THIS IS WHAT WE HAVE FOR YOU. SO WE'RE GOING TO DO A 2022 PROGRESS REPORT. AND THEN WE ARE HERE WITH AN 18 MONTH IMPLEMENTATION PLAN THAT WILL GET US ON A FISCAL YEAR REPORTING SCHEDULE. SO I WILL EXPLAIN THAT WITH A GRAPHIC IN A MOMENT. THESE ARE DOCUMENTS MOVING FORWARD. OUR PROGRESS REPORT IS SHORT AND SIMPLE. IT HAS AN INTRODUCTION, MEASURING AND REPORTING OF PROGRESS. WE WILL ALWAYS INCLUDE A HOUSING MARKET SNAPSHOT, OUR ACHIEVEMENTS, AND THEN CONCLUSION. THE INTRODUCTION WILL ALWAYS BE A REMINDER OF WHAT OUR 10 YEAR PLAN, OVERARCHING GOAL AND STRATEGIES ARE, WHICH I KNOW THAT YOU ARE FAMILIAR WITH. BUT THE OVERALL GOAL IS REDUCE THE CURRENT AFFORDABLE HOUSING NEED IN OUR COMMUNITY BY HALF OVER THE NEXT TEN YEARS WITH TWO ELEMENTS. ONE IMPACTING RESIDENTS THROUGH A COMBINATION OF UNIT CREATION OR SUBSIDY PROVISION, AND THE OTHER IS THE CREATION OF 7 THOUSAND A HUNDRED AND. WOW. 700,000. NO, NO, NO. 7,976 HOUSING UNITS IN THE NEXT TEN YEARS WITH A MINIMUM OF 10% OF THOSE BEING AFFORDABLE. AGAIN, ALL TARGETED AT LOCAL RESIDENTS, NOT FOR FOLKS MOVING INTO OUR COMMUNITY. SO HERE'S OUR SCHEDULE THAT WE'RE GOING TO STICK TO AFTER THIS YEAR. SO WE BUILT THIS TO BE RESPECTFUL OF THE BUDGETING PROCESS THAT OUR ORGANIZATION USES. SO KNOWING THAT WE NEED TO REPORT ON A FISCAL YEAR BASIS, WE WOULD TYPICALLY BE HERE IN AUGUST, THE RED CIRCLE REPORTING THE PREVIOUS FISCAL YEAR'S ANNUAL REPORT. SINCE WE'RE AT A YEAR OUT, THIS IS OUR WEIRD CYCLE. SO WE WILL IN MAY COME TO, YOU NO, COME TO THE HOUSING COMMISSION WITH AN ANNUAL IMPLEMENTATION PLAN. THIS GOES TO THE HOUSING COMMISSION IN MAY. WE WILL COME TO COUNCIL FOR THAT IN JUNE. THIS WAS BUILT TO WORK WITHIN THE CITY'S BUDGETING PROCESS. BY JUNE, WE WILL KNOW MOSTLY WHAT CITY COUNCIL'S BUDGET PRIORITIES ARE, WHAT WE'RE ABLE TO ADDRESS AND WHAT THERE MAY NOT BE RESOURCES AVAILABLE TO DO IN THE COMING YEAR AS OUR BUDGET EBBS AND FLOW AS WE EXPECT IT TO. SO THEN IN AUGUST, WE WILL COME TO THE HOUSING COMMISSION TO TALK ABOUT THE ACCOMPLISHMENTS IN THE PREVIOUS FISCAL YEAR AND COME TO COUNCIL WITH THOSE ACCOMPLISHMENTS IN SEPTEMBER. AND THEN IN THE MEANTIME, WE'RE GOING TO BE DOING ALL OF THE PLAN IMPLEMENTATION WORK. IT WAS IMPORTANT WHEN THE TEN YEAR PLAN WAS PASSED THAT THAT TRANSPARENCY WAS FOREMOST IN PEOPLE'S MIND. WE WANTED TO CREATE A PREDICTABLE SCHEDULE THAT WORKED WITHIN THE OTHER FUNCTIONS OF THE ORGANIZATION AND CITY COUNCIL IN ORDER TO CREATE THAT THAT TRANSPARENCY AND SOME CONSISTENCY SO YOU KNOW, AND CAN SHARE WITH ANYONE WHAT YOU WOULD LIKE TO WHAT THAT SCHEDULE LOOKS LIKE. OUR ANNUAL REPORTS WILL UTILIZE AT A GLANCE GRAPHICS THAT CAN GENERALLY STAND ON THEIR OWN. THIS WILL BE OUR GRAPHIC FOR HIGHLIGHTING FISCAL YEAR MILESTONES SO ONLY THINGS THAT HAPPENED WITHIN THIS FISCAL YEAR. [03:10:02] THIS IS SAMPLE DATA ONLY BECAUSE WE'RE NOT ON THAT FISCAL YEAR BASIS YET. AND SO THIS GRAPHIC WILL BE ABLE TO ULTIMATELY STAND ON ITS OWN AND SHARE WHAT HAPPENED IN THAT FISCAL YEAR. WE WILL ALSO BE REPORTING ON THE CUMULATIVE PROGRESS SINCE THE 10 YEAR PLAN WAS APPROVED WITH THE GRAPHIC ON THE LEFT. SO WE HAVE A DIAL FOR RESIDENTS IMPACTED, AND THAT'S BEING A REFLECTION OF ELEMENT ONE THROUGH UNIT CREATION AND OR SUBSIDY PROVISION. ELEMENT TWO IS IN THE GREEN, WHICH IS CREATING OR PRESERVING HOUSING UNITS WITH A MINIMUM OF 10% OF THEM BEING AFFORDABLE, WHICH IS REFLECTED IN THE RED. NOW, YOU'LL SEE IN THIS LITTLE PART IN THE MIDDLE IT SAYS 140 COMMITTED BUT NOT SHOWN IN GRAPHICS. SO IN THE GRAPHIC. WE WORKED WITH, I SAY WE SO BROADLY, COUNCIL, THIS IS NOT ME. IT'S NOT IT'S THE INCREDIBLY AMAZING STAFF WITHIN THE HOUSING SECTION. SO I SAY WE, BUT IT WASN'T ME, IT WAS THEM. AND THEY WORKED WITH PLANNING AND DEVELOPMENT SERVICES TO FIGURE OUT AT WHAT POINT DOES IT MAKE SENSE FOR US TO REPORT SOMETHING COMPLETED? BECAUSE IF WE ARE JUST REPORTING COMMITTED UNITS BUT THEY'RE NOT UNITS IN THE GROUND, THEY'RE NOT ACTUALLY WE HAVEN'T HIT THE TARGET. SO THE SUBSIDY PIECE IS A LOT EASIER. WE PROVIDED THE SUBSIDY, HAVE A NICE DAY. MARKET RATE UNITS DELIVERED, AFFORDABLE UNITS DELIVERED WILL BE MEASURED BY COUNTING THE UNITS THAT RECEIVED A FINAL BUILDING INSPECTION. AND WE WILL USE THE ALREADY EXISTING BUILDING FINALS REPORT IN ORDER TO DO THAT FOR BOTH OF THOSE SO THAT WE ARE. WHOA. SORRY. SO WE'RE KEEPING THAT DATA CONSISTENT. THE COMMITTED AFFORDABLE UNITS WILL BE THINGS THAT HAVE ALREADY BEEN COMMITTED BY A DEVELOPER IN A DEVELOPMENT AGREEMENT, ALSO APPROVED BY COUNCIL OR IN AN APPROVED SITE PLAN OR PLAT. SO WE WANTED TO CREATE THESE DEFINITIONS. WE WANTED TO CREATE THE CONSISTENCY AND TRANSPARENCY. SO IT'S NOT. WELL, DO WE COUNT IT WHEN THEY PULL THE BUILDING PERMITS OR DO WE COUNT IT WHEN IT'S DONE? WE COUNT IT WHEN IT'S SOLD? SO THESE ARE THE DEFINITIONS THAT WE ARRIVED AT IN WORKING WITH OUR PEERS THAT ALSO HAVE IMPACT OVER THESE. THIS DATA WILL BE TRACKED FROM JANUARY 2023 FORWARD. SO LAST MONTH. SO CONCLUSION IN PROGRESS, OUR ANNUAL PROGRESS. I'M GOING TO WALK YOU THROUGH THIS. I WILL DO IT QUICKLY, I PROMISE. FOR EXAMPLE, THE STRATEGY IN THE 10 YEAR PLAN IS TO PRESENT A 2022 BOND MEASURE TO COUNCIL AND COMMUNITY FOR CONSIDERATION. STATUS COMMENTS OVER HERE ON THE RIGHT. IT WAS PRESENTED AND IT WAS APPROVED. PERCENT COMPLETE. 100% COMPLETE. ANOTHER ONE THAT WE WORKED ON IN THIS LAST YEAR WAS TO CREATE A HOUSING NAVIGATOR OR ADVOCATE POSITIONS TO ASSIST LANDLORDS AND HOUSING CHALLENGED POPULATIONS. STRAIGHT OUT OF THE 10 YEAR PLAN. WE'RE AT 75% HOUSING NAVIGATOR POSITION WAS CREATED AND FILLED. IT'S FUNDED RIGHT NOW WITH ONE TIME MONEY, AND WE ARE REQUESTING THROUGH THE BUDGET PROCESS ONGOING TO MAKE THAT POSITION ONGOING IF THERE ARE SUFFICIENT CITY RESOURCES AND A RECOMMENDATION FROM THE BUDGET TEAM OF WHICH WE ARE COMPLETELY RESPECTFUL. SO OUR OTHER PIECE HERE IS IMPLEMENT A PUBLIC OUTREACH CAMPAIGN TO EDUCATE THE COMMUNITY ABOUT THE CRITICAL ROLE AFFORDABLE HOUSING PLAYS IN A THRIVING COMMUNITY. WE ARE AT ABOUT 20%. WE DID A SMALL VIRTUAL EDUCATION CAMPAIGN IN OCTOBER IN CELEBRATION OF HOUSING AMERICA MONTH, AND A LARGER CAMPAIGN WILL TAKE PLACE IN THE COMING YEAR. WE NEED TO BE REALLY CAREFUL WITH THIS ONE BECAUSE WITH THE BOND MEASURE ON THE BALLOT, WE COULD NOT BE SEEN IN ANY WAY, SHAPE OR FORM ADVOCATING AND WE DIDN'T WANT OUR EDUCATION TO BE CONSTRUED AS ADVOCATING WHEN WE'RE REALLY INTENDING TO EDUCATE ON THE LOCAL OR ON THE GREATER PART OF HOW HOUSING FUNCTIONS IN THE COMMUNITY. AND SO WE DID WHAT WE COULD WITHIN THE BOUNDARIES THAT WE THOUGHT WERE APPROPRIATE AND WOULD KEEP US IN THE SAFETY ZONE OF EDUCATING, NOT ADVOCATING WITH THAT BALLOT MEASURE ON THE BALLOT. WE WILL ALWAYS HAVE. WOW. SORRY. I'M GOING FAST. THERE IT GOES. ALL RIGHT. SO WE HAVE AN 18 MONTH FOR YOU. THE ONLY ONE UNIQUE 18 MONTH IMPLEMENTATION PLAN. ALL FUTURE IMPLEMENTATION PLANS WILL BE ANNUAL AND BASED ON THE FISCAL YEAR. SO CONTENTS OF THE PLAN. [03:15:01] INTRODUCTION 10 YEAR HOUSING PLAN, OVERARCHING GOAL AND STRATEGIES AND STRATEGY IMPLEMENTATION. IT WAS OUR INTENT TO HAVE THESE DOCUMENTS BE ABLE TO STAND ON THEIR OWN WITHOUT HAVING TO REFER BACK TO ANOTHER ONE, WHICH IS WHY WE'RE BEING REPETITIVE WITH GOALS AND STRATEGIES. SAME CALENDAR, BUT YOU WOULD USUALLY SEE THIS IN I'M SORRY I DID THIS FOR THE HOUSING COMMISSION. I DIDN'T MOVE MY CIRCLE FOR YOU COUNCIL. MY APOLOGIES. HOUSING COMMISSION WOULD SEE THIS IN MAY. YOU WOULD SEE IT IN JUNE. AS FAR AS WHAT OUR WORK PROGRAM WILL LOOK LIKE AS FUNDING ALLOWS BETWEEN JULY 1 AND JUNE 30. STRATEGY IMPLEMENTATION. SO AS WE GET INTO THESE FABULOUS STRATEGIES, WE DISCOVERED SOME THINGS WE DIDN'T DISCOVER WE KNEW THEY WERE THERE, BUT WE'VE BEEN ABLE TO CONDENSE THEM TO MAKE A LITTLE MORE SENSE. THERE ARE SOME STRATEGIES THAT DEPEND ON OTHERS BEING DONE. FOR EXAMPLE, INCENTIVE POLICY REWRITE IS CONTINGENT UPON THE REGULATORY ANALYSIS BEING DONE. DOES IT MAKE SENSE FOR US TO START WORK ON REDOING THE INCENTIVE POLICY WHEN THE BASE ANALYSIS IS INCOMPLETE? SO WE HAVE DEFINED DEPENDENCIES WITHIN THE STRATEGIES OF SOMETHING MUST BE COMPLETED FIRST BEFORE THE OTHER ONE CAN BE TOUCHED. WE WANTED TO MAKE SURE WE'RE PAYING ATTENTION TO THE TIME COMMITMENT AND THAT IS THE ANTICIPATED AMOUNT OF TIME OR STAFF TIME NECESSARY TO ACHIEVE THE STRATEGY. NOT ALL OF THESE STRATEGIES REQUIRE A BUDGET ALLOCATION, BUT THEY DO REQUIRE AN ALLOCATION OF STAFF TIME. SO WHAT IS OUR CAPACITY TO WORK ON THINGS? SOME OF THOSE THINGS WILL TAKE LONGER, SOME OF THEM SHORTER. WHAT'S OUR PUBLIC ENGAGEMENT? WHAT IS THE NECESSARY AMOUNT OF PUBLIC ENGAGEMENT NECESSARY TO ACHIEVE THE STRATEGY? KEEPING IN MIND THAT PUBLIC ENGAGEMENT WAS FOREFRONT IN THE DISCUSSION SURROUNDING THE CREATION OF THE 10 YEAR HOUSING PLAN AND MAKING SURE THAT THE PUBLIC REMAINS ENGAGED AS WE MOVE FORWARD WITH IMPLEMENTING IT. SO WE WANTED TO MAKE SURE THAT WE WE HAVE ENOUGH TIME TO DO PUBLIC ENGAGEMENT, NOT JUST ADEQUATELY, BUT TO DO PUBLIC ENGAGEMENT WELL, THAT TAKES MORE TIME. SO WE WANT TO ACKNOWLEDGE THAT. THINGS THAT REQUIRE COUNCIL CONSIDERATION, SOME OF THE THINGS WE CAN DO AND JUST REPORT BACK TO YOU. SOME THINGS WILL REQUIRE COUNCIL CONSIDERATION THAT AT LEAST SOME OF THOSE PARTS OF THE STRATEGY WILL REQUIRE CITY COUNCIL APPROVAL FOR IMPLEMENTATION. FUNDING REQUIRED OVER STAFF TIME. THAT'S THE OPPOSITE SIDE OF THIS TIME COMMITMENT IS IN SOME CASES THERE WILL BE STRATEGIES THAT TAKE MONEY IN ADDITION TO STAFF TIME AND THEN CITY DIVISION AND SECTION COLLABORATION. I HATE TO SHARE IT WITH YOU, BUT THE HOUSING SECTION IS NOT IN CHARGE OF THE ENTIRE CITY. AND SO WE REALIZE THAT AND THAT OTHER SECTIONS AND DEPARTMENTS HAVE THEIR OWN WORK PROGRAMS THAT WE NEED TO MAKE SURE THAT WE ARE WORKING WITHIN AND BEING RESPECTFUL AND SAYING, HEY, 10 YEAR PLAN CALLS FOR THIS. DO YOU THINK THIS IS THE YEAR AS YOU'RE DOING YOUR STAFF PLANNING OR IS THIS SOMETHING WE SHOULD LOOK AT FOR NEXT YEAR? AND THAT'S REALLY WHAT ADRIANA WILL BE DOING AS WELL, MAKING SURE THAT IT'S NOT JUST US SAYING WE WANT TO WORK ON THIS, BUT REALLY MAKING SURE THAT IT FITS ORGANIZATIONALLY WITH WHAT COMMITMENTS OTHER DIVISIONS AND SECTIONS HAVE. SO THIS IS AN EXAMPLE. THE OTHERS ARE NOT ON THE CHART, BUT THIS CHART IS IN THE DOCUMENT. YOU CAN SEE THE CATEGORIES THAT I JUST DISCUSSED ACROSS THE TOP. THIS ONE IS ONE I BELIEVE COUNCILMEMBER MATTHEWS YOU ASKED ABOUT THIS ANALYSIS. I THINK IT WAS YOU. THE STRATEGY READS TO HIRE AN INDEPENDENT CONSULTANT TO REVIEW CITY CODES, PROCESSES AND FEES TO DETERMINE WHETHER MODIFICATIONS, REDUCTIONS OR ELIMINATIONS WOULD FACILITATE COST SAVING HOUSING DEVELOPMENT STRATEGIES. I DO SEE THAT WORD FEE IS IN THERE, BUT THE FEE STUDY IN AND OF ITSELF IS A SEPARATE THING. HOWEVER, FEES WILL BE TAKEN INTO CONSIDERATION. BUT THE FEE STUDY AND MR. TADDER, IF I'M MISSPEAKING, PLEASE POP ON AND FIX ME. BUT THE FEE STUDY ITSELF HAS TO FIT WITHIN DIFFERENT DEFINITIONS. AND IT HAS TO. DOING THIS POORLY, I APOLOGIZE. HAS TO LOOK AT SPECIFIC THINGS COMPARED TO SPECIFIC OTHER THINGS. SO FEES ARE CONSIDERATION HERE, BUT NOT THE SOLE FOCUS. IS IT DEPENDENT ON OTHER STRATEGIES BEING COMPLETED? NO, BUT LOTS OF OTHER STRATEGIES ARE DEPENDENT ON THIS ONE. AND SO I'M JUST GOING TO PULL YOUR ATTENTION DOWN TO WELL, WE'LL START WITH FUNDING REQUIRED OVER STAFF TIME. YES. AND CITY COUNCIL, YOU FUNDED THIS IN THE CURRENT FISCAL YEAR'S BUDGET, WHICH WERE SIX MONTHS AND TWO. YOU CAN SEE THE NUMBER OF DIFFERENT FOLKS THAT WE HAVE TO COLLABORATE WITH IN ORDER TO DO THIS WELL. [03:20:05] WE'RE ACTUALLY PARTNERING WITH SUSTAINABILITY IN THIS EFFORT. FUNDS WERE REQUESTED AND APPROVED FOR THE FISCAL YEAR BUDGET. I THINK THE BIGGER PIECE HERE IS THAT THE COMPLETION OF THE STRATEGY SIGNIFICANTLY IMPACTS AND INFORMS THE COMPLETION OF OTHER STRATEGIES. AND SO WE'RE TACKLING THE ONES THE BIGGER ONES THAT OTHERS NEED FIRST. THE RSOQ TO IDENTIFY THE THIRD PARTY TO CONDUCT THIS REVIEW IS IN ITS LAST READ. IT'S GONE. IT'S BEEN WRITTEN, IT'S GONE THROUGH PROCUREMENT, IT'S GONE THROUGH LEGAL, AND IT'S BACK IN OUR STAFF'S HANDS AS OF YESTERDAY TO DO ONE FINAL READ OVER IT BEFORE IT IS PUBLISHED. MICHELLE MCNULTY, OUR PLANNING DIRECTOR, HAS TAKEN THE LEAD IN WORKING ON THIS RSOQ. WE'RE NOT THE HOUSING STAFF AND SUSTAINABILITY STAFF. WE'RE NOT THE REGULATORS; PLANNING AND DEVELOPMENT SERVICES ARE, AND SO THEY ARE LEADING THE EFFORT WITH US IN ORDER TO MAKE SURE THAT WE'RE KEEPING A FOCUS IN ALL THE AREAS WE NEED TO BE. THE OTHER THINGS WE'LL BE WORKING ON IN THE COMING 18 MONTHS FOR IMPLEMENTATION IS EXPLORING IF AFFORDABLE HOUSING CAN BE AN ALLOWED USE WITHIN THE PUBLIC FACILITIES ZONE, CREATING A DEDICATED TEAM WITHIN PLANNING AND DEVELOPMENT SERVICES, SPECIFICALLY FOR AFFORDABLE HOUSING PROJECTS. CONNECT 2.3 ON THE LOWER LEFT HAND SIDE IS REVIEWING MEMBER COMPOSITION OF THE HOUSING COMMISSION HOUSING AUTHORITY BOARD TO ENSURE. I LOST MY WORDS, RACIAL AND ECONOMIC DIVERSITY REFLECTIVE OF THE COMMUNITY. ACQUIRE AND REHABILITATE ALREADY BUILT PROJECT PROPERTIES FOR AFFORDABLE HOUSING. THIS IS SOMETHING RELATIVE TO OUR BOND FUNDS. GO RIGHT HERE. CREATE AND MAINTAIN AN AFFORDABLE HOUSING IMPACT STATEMENT. THIS IS SOMETHING THAT WE CAN DO IN PARTNERSHIP WITH WITH PLANNING AND DEVELOPMENT SERVICES SO THAT WE'RE BETTER TRACKING DATA. ANYBODY DISPLACED UNITS DESTROYED, UNITS REPLACED, THAT TYPE OF THING. AND THEN EXAMINE AN UPDATE IF NEEDED, THE CITY'S HOUSING LIMITED ENGLISH PROFICIENCY PLAN, WHICH IS REQUIRED. BUT IT'S IMPORTANT THAT WE EXAMINE IT IN CONTRAST WITH THE SEMI NEWLY AVAILABLE CENSUS DATA. EVERY YEAR WE'LL HAVE ONGOING STRATEGIES, THINGS THAT ARE NOT QUITE DONE YET. AND SO WE'VE ALREADY TALKED ABOUT ONE OF THOSE, WHICH IS THE HOUSING NAVIGATOR AND THE PUBLIC OUTREACH CAMPAIGN. SO WE WILL ACKNOWLEDGE THINGS THAT WE'RE GOING TO CONTINUE DOING IN ADDITION TO THE NEW PIECES. WHAT IS THE ROLE OF THE HOUSING COMMISSION IN ALL OF THIS, BOTH TEN YEAR PLAN AND BOND FUNDS? NEXT SLIDE IS BOND FUNDS, AND WE'RE AT THE END. SO WE MET WITH LEGAL TO MAKE SURE WE WERE ALL ON THE SAME PAGE ABOUT WHAT PROVIDE OVERSIGHT OF ANY FUNDS APPROVED BY THE ELECTORATE FOR HOUSING PURPOSES NEEDS. SO THIS ISN'T NEWS TO YOU. BUT WE WANTED TO SHARE WITH YOU WE SHARED WITH THE HOUSING COMMISSION IS THAT CITY COUNCIL, YOU'RE THE ULTIMATE AUTHORITY REGARDING BOND FUNDS. YOU ARE THE DECISION MAKERS. IT IS THE HOUSING COMMISSION'S ROLE TO REVIEW AND MAKE RECOMMENDATIONS TO YOU. THE HOUSING COMMISSION REVIEWED BOTH THE IMPLEMENTATION PLAN AND THE PROGRESS REPORT AND SENT THOSE ALONG TO YOU FOR THIS EVENING. NOW, WHAT YOU HAVE ALL BEEN WAITING FOR IS A HOUSING BOND UPDATE. SO WE FEEL THAT WE HAVE SOME FAIRLY LOW HANGING FRUIT WITH THE HOMEBUYER ASSISTANCE PROGRAM AND IMPLEMENTING THAT BECAUSE WE HAVE AN EXISTING FRAMEWORK IN THE CHAP PROGRAM I MENTIONED EARLIER. THERE ARE SOME THINGS THAT WE WANT TO WE WILL RECOMMEND TO CHANGE BASED ON SOME MARKET DYNAMIC ELEMENTS, BASED ON CREATING A TRUE REVOLVING LOAN FUND AS WAS INTENDED WITH THIS. SO WE HAVE AN EXISTING FRAMEWORK HERE. THIS IS OUR LOW HANGING FRUIT. THIS IS THE ONE WE'RE ATTACKING FIRST AND GETTING THAT IN PLACE. WHEN WE GET TO THE NEXT TWO, WHICH IS REPURPOSING EXISTING AVAILABLE BUILDINGS INTO RENTAL UNITS AND INCENTIVIZING THE PRIVATE SECTOR TO INCORPORATE AFFORDABLE RENTAL UNITS. WE ARE RESEARCHING BEST PRACTICES SO THAT WE CAN MAKE OUR OWN MISTAKES AND AVOID THE MISTAKES ALREADY MADE BY OTHERS TO BRING FORWARD A FRAMEWORK FOR REVIEW BY THE HOUSING COMMISSION AND ULTIMATELY YOU. [03:25:03] AND THEN INCENTIVIZING PRIVATE SECTOR RENTALS IT'S A SEMI-EXISTING FRAMEWORK WITH THE INCENTIVE POLICY. BUT THE INTENT BEHIND THIS ONE WAS REALLY TO BE ABLE TO PROVIDE ASSISTANCE TO OUR LOW INCOME HOUSING TAX CREDIT DEVELOPERS AS THEY SEEK THAT LOCAL CONTRIBUTION. AND SO THE LOCAL CONTRIBUTION AS INCENTIVIZED BY THE STATE. AND SO WE ARE WORKING TO BEST DETERMINE HOW TO MEET OUR COMMUNITY DEMAND. JEN MIKELSON'S PHONE HAS BEEN RINGING OFF THE HOOK OF LIKE, HEY, I HEARD YOU HAVE MONEY, I HEARD YOU HAVE IT. DID YOU HAVE ANY MONEY? I HEARD YOU HAVE MONEY. WE'RE ALSO GOING TO HAVE SOME OTHER QUESTIONS FOR YOU ON THE PACE. IS IT OKAY THAT WE SPEND THE $3 MILLION HERE IN FOR TWO PROJECTS, OR SHOULD WE SPREAD IT OUT OVER TIME? SO AGAIN, WE'RE RESEARCHING THOSE BEST PRACTICES. WE'RE GOING TO COME TO YOU WITH A FRAMEWORK AND THEN REDEVELOPING THE CITY OWNED HOUSING TO CREATE ADDITIONAL AFFORDABLE RENTAL UNITS. THIS IS RELATED TO RAD THAT WE TALKED ABOUT EARLIER, AND IT'S PART OF A MUCH LARGER PROJECT. I ANTICIPATE WE'LL BE TOUCHING THIS ONE IN ABOUT 2 TO 5 YEARS. WE HAD DONE AN RSOQ TO IDENTIFY A PARTNER FOR RAD. WE WERE UNABLE TO REACH AGREEMENT WITH THE IDENTIFIED SUCCESSFUL RESPONDENT AND WE'LL BE REISSUING THAT RSOQ. MORE COMING ATTRACTIONS. COUNCIL WE'RE GOING TO BE BACK. ONE HYPOTHETICALLY, MAYBE TOMORROW. IF NOT TOMORROW, THEN IN THE NEXT WEEK. OUR YEAR IN REVIEW HOUSING NEWSLETTER WITH OUR ACCOMPLISHMENTS WILL BE IN FRONT OF YOU ON MARCH 21ST WITH RECOMMENDATIONS FOR AWARDING THE ARPA MONEY, WHICH IS ANOTHER 1.9 MILLION IN HOUSING ASSISTANCE. WE'LL BE IN FRONT OF YOU ON APRIL 11TH FOR A WORK SESSION CONCERNING CDBG RECOMMENDED AWARDS AND ALSO THE FAIR HOUSING PROCLAMATION I MENTIONED. APRIL 18TH WE'LL BE IN FRONT OF YOU SEEKING APPROVAL FOR THOSE CDBG AWARDS AND THE ANNUAL ACTION PLAN, WHICH IS A CDBG BASED DOCUMENT. WE ARE IN THE PROCUREMENT PROCESS FOR THE CODE AND LAND AVAILABILITY, SUITABILITY ANALYSIS AND ANTICIPATE THAT THAT ROSQ WILL BE PUBLISHED WITHIN THE NEXT 4 TO 6 WEEKS. AND THEN WE WILL BE BACK TO YOU WITH THE PROGRAMMATIC DYNAMICS FOR BOND FUNDED PROGRAMS. AND THEN I WROTE AND OTHER THINGS BECAUSE THERE IS MORE, BUT THESE ARE THE BIGGER ONES WE'RE COMING TO. AND WITH THAT, I WOULD LIKE TO THANK YOU FOR SPENDING VALENTINE'S DAY WITH HOUSING AND ANSWER ANY QUESTIONS YOU MAY HAVE. THANK YOU, SARAH. COUNCIL DO WE HAVE ANY QUESTIONS, COMMENTS? ALL RIGHT. SARAH, THANK YOU SO MUCH FOR ALL OF THE WORK THAT YOU PUT INTO THAT PRESENTATION. AND I CAN'T WAIT TO START SEEING SOME OF THIS BOND FUNDING SPENT AND SEE YOUR IMPLEMENTATION STRATEGY. SO THANK YOU. THANK YOU, ALL OF THE HOUSING TEAM. I WOULD LIKE TO EXTEND AN INVITATION TO MAYOR, COUNCIL OR REALLY ANYBODY LISTENING WHO WOULD LIKE TO LEARN MORE. IF YOU'D LIKE A TOUR OF OUR PUBLIC HOUSING PROPERTIES, IF YOU HAVE SPECIFIC QUESTIONS YOU'D LIKE TO SIT DOWN AND DISCUSS AT LENGTH, STAFF IS AVAILABLE AND HAPPY TO DO SO. THANK YOU SO MUCH. ALL RIGHT, SO THEN ARE WE GOING TO RESCHEDULE EVERYTHING FOR THE NEXT MEETING? MAYOR, WE'VE BEEN WORKING ON LOOKING AT SOME DATES THAT WORK BEST FOR STAFF, SO WE'LL GET BACK WITH YOU. BUT YES, THEY WILL ALL THE REMAINING ITEMS WILL COME BACK TO YOU HERE IN THE VERY NEAR FUTURE, IF NOT NEXT WEEK. WONDERFUL. THANK YOU FOR DOING THAT. APPRECIATE IT. SO THEN WE CAN SKIP AHEAD TO PUBLIC PARTICIPATION. AND I SEE NO PUBLIC PARTICIPATION. INFORMATIONAL ITEMS TO FROM MAYOR, COUNCIL, CITY MANAGER AND FUTURE AGENDA ITEM REQUESTS. [9. Informational Items To/From Mayor, Council, and City Manager; future agenda item requests] OKAY, SO LET'S START WITH COUNCILMEMBER HOUSE. LET'S SEE. SORRY. I'M TRYING TO SKIP SOME THINGS FOR THE SAKE OF TIME. TOMORROW THERE IS A CITY OF FLAGSTAFF PROSE BLOOD DRIVE IN CELEBRATION OF BLACK HISTORY MONTH FROM 1:30 TO 6:00 P.M. AT THE HAL JENSEN RECREATIONAL CENTER. AND IF YOU CAN'T MAKE THAT ONE, TRY TO JOIN THE KEEP THE LOVE FLOWING COMMUNITY BLOOD DRIVE. FRIDAY, FEBRUARY 24TH AND SATURDAY, THE 25TH AT THE FLAGSTAFF MALL RETAIL SUITE BY THE JC PENNEY MALL ENTRANCE. [03:30:08] THANK YOU SO MUCH, COUNCIL MEMBER SWEET. NOTHING TONIGHT. THANK YOU. THANK YOU VERY MUCH, COUNCIL MEMBER MCCARTHY. THANK YOU, MAYOR. LAST WEEK, I REPORTED THAT THE EXECUTIVE DIRECTOR, MILES MEILBECK, IS LEAVING METRO PLAN. AND I JUST WANT TO REPORT THAT THE METROPOLITAN EXECUTIVE BOARD HAD A MEETING YESTERDAY AND WE'RE TAKING APPLICATIONS FOR AN INTERIM EXECUTIVE DIRECTOR, AND THAT'S OPEN UNTIL FRIDAY AND A 30 DAY OPENING LOOKING FOR A PERMANENT EXECUTIVE DIRECTOR. SO IF ANYBODY IS INTERESTED, THE POSTING IS IN SEVERAL PLACES. PROBABLY THE EASIEST PLACE TO FIND IT IS ON THE MOUNTAIN LINE WEBSITE. AND OF COURSE MOUNTAIN LINE DOES HR FOR METRO PLAN. SO WE HAVE HAD SOME APPLICANTS ALREADY AND I GUESS I'LL LEAVE IT AT THAT. I WILL MENTION THAT COUNCIL MEMBER SWEET AND ASLAN ATTENDED THE MEETING YESTERDAY, WHICH WAS ON VERY SHORT NOTICE. SO THANK BOTH OF YOU FOR ATTENDING. THANK YOU, COUNCIL MEMBER MATTHEWS. THANK YOU, MAYOR. I JUST WANTED TO MENTION THAT ON SATURDAY, MAYOR DAGGETT AND MYSELF AND COUNCIL MEMBER HOUSE AND COUNCIL MEMBER SWEET ATTENDED THE SUMMIT ON EQUAL RESPONSIVITY IN FLAGSTAFF, PRODUCED IN PART BY COUNCIL MEMBER HARRIS. IT WAS, I THOUGHT, VERY INFORMATIVE AND WELL RAN, AND I LOOK FORWARD TO HAVING MORE OPPORTUNITIES IN THAT FORUM. SO THANK YOU. THANK YOU, VICE MAYOR. I DON'T HAVE ANYTHING TO ADD TONIGHT. LET YOU GUYS GET HOME 30 SECONDS EARLIER. THANK YOU. ALL RIGHT. I HAVE A COUPLE OF THINGS. I HEART PLUTO. YOU DID FORGET ME. OH, I AM SO SORRY, COUNCIL MEMBER HARRIS. THANK YOU. COUNCIL MEMBER HARRIS, PLEASE GO AHEAD. THANK YOU. I'LL DO MINE NEXT WEEK. THANK YOU. ALL RIGHT. THANK YOU. I HEART PLUTO. I KNOW YOU HEART PLUTO. WE'RE CELEBRATING PLUTO. THANKS TO LOWELL OBSERVATORY FOR PUTTING ON THIS SERIES OF FUN EVENTS, CULMINATING IN A PRESENTATION THIS SATURDAY AT THE ORPHEUM THEATER. ON FRIDAY, I AM TAKING A RIDE ALONG WITH FLAGSTAFF FIRE DEPARTMENT, AND I'M PRETTY EXCITED ABOUT THAT. AND I JUST WANT TO EXTEND MY THANKS TO COUNCILMEMBER CRANE AND HIS STAFF FOR INVITING ME TO THE STATE OF THE UNION ADDRESS, WHICH WAS IT WAS REALLY WAS A WONDERFUL OPPORTUNITY TO WITNESS A STATE OF THE UNION ADDRESS. AND HIS STAFF SPENT A GOOD PART OF THE DAY WITH ME GIVING ME A TOUR OF THE CAPITAL. SO THAT IS VERY MUCH APPRECIATED. AND THAT'S ALL I HAVE. STAFF? NO, NOTHING FROM US. THANK YOU, MAYOR. THANK YOU. ALL RIGHT, SO WE ARE ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.