Apr 16, 2024 City Council Meeting

YES. THERE WE GO.

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

[00:00:03]

REGULAR MEETING OF THE CITY COUNCIL.

I AM CALLING THIS MEETING TO ORDER.

NOTICE IS HEREBY GIVEN TO THE MEMBERS OF THE CITY COUNCIL AND TO THE GENERAL PUBLIC, THAT AT THIS REGULAR MEETING, THE CITY COUNCIL MAY VOTE TO GO INTO EXECUTIVE SESSION, WHICH WILL NOT BE OPEN TO THE PUBLIC FOR DISCUSSION AND CONSULTATION WITH THE CITY'S ATTORNEYS.

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

CAN WE HAVE ROLL CALL? MAYOR DAGGETT HERE.

VICE MAYOR ASLAN, PRESENT.

COUNCIL MEMBER HARRIS HERE.

COUNCIL MEMBER HOUSE HERE.

COUNCIL MEMBER MATTHEWS HERE.

COUNCIL MEMBER MCCARTHY.

HERE. COUNCIL MEMBER SWEET.

HERE. THANK YOU.

COUNCIL MEMBER HOUSE. WOULD YOU LEAD US IN? THE PLEDGE OF ALLEGIANCE WOULD BE MY HONOR.

THANK YOU. MAYOR. PLEASE STAND IF YOU'RE ABLE.

COUNCIL MEMBER HARRIS.

OUR MISSION STATEMENT.

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

THANK YOU AND COUNCIL MEMBER MCCARTHY OUR LAND.

ACKNOWLEDGMENT. THANK YOU.

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

THESE LANDS, STILL INHABITED BY NATIVE DESCENDANTS, BORDER MOUNTAIN 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.

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

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

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

YOU HAVE THREE MINUTES TO ADDRESS US AND DURING OPEN CALL TO THE PUBLIC, THE COUNCIL CANNOT RESPOND.

WE HAVE COMMENT CARDS.

ALL RIGHT. AND WE ALSO LIMIT PUBLIC COMMENT DURING THIS OPEN CALL TO THE PUBLIC TO 30 MINUTES.

BUT WE HAVE OPEN CALL TO THE PUBLIC AGAIN AT THE END OF THE MEETING.

AND THAT TIME IS UNLIMITED.

SO OPEN CALL TO THE PUBLIC DENNIS GIVENS.

ALL RIGHT. THANKS A LOT.

CITY COUNCIL, MAYOR. DAGGETT, CITY COUNCIL, CITY STAFF.

THE CITIZENS. WELCOME.

THANKS FOR HAVING ME.

I'M HERE. MY NAME IS DENNIS GIVENS OF THE SOUTH SIDE.

I'M HERE TO TODAY TO TALK ABOUT HEROES.

MY HEROES ARE NOT MUSICIANS, MOVIE STARS AND ATHLETES SUCH AS JUSTIN BIEBER, BRAD PITT AND TOM BRADY.

MY HEROES. ARE ALL OF YOU THE PUBLIC SERVANTS YOU ON THE CITY COUNCIL, THE CITY STAFF, ESPECIALLY THOSE DUDES IN THE BACK.

AND I JUST WANTED TO READ A QUOTE FROM ONE OF MY HEROES, ROBERT F KENNEDY SENIOR.

IT'S A PART OF HIS EULOGY FOLLOWING THE 1968 ASSASSINATION OF CIVIL RIGHTS LEADER MARTIN LUTHER KING JR.

IT GOES, WHAT WE NEED IN THE UNITED STATES IS NOT DIVISION.

WHAT WE NEED IN THE UNITED STATES IS NOT HATRED.

WHAT WE NEED IN THE UNITED STATES IS NOT VIOLENCE AND LAWLESSNESS, BUT IS LOVE AND WISDOM AND COMPASSION TOWARDS ONE ANOTHER AND A FEELING OF JUSTICE TOWARD THOSE WHO STILL SUFFER WITHIN OUR COUNTRY, WHETHER THEY BE WHITE OR WHETHER THEY BE BLACK OR WHATEVER THEY MAY BE.

AND THAT'S THE QUOTE I WANTED TO READ TODAY REALLY TOUCHES ME.

AND ANOTHER THING PEOPLE KEEP SAYING TRUST THE SCIENCE.

TRUST THE SCIENCE THAT JESUS IS COMING BACK.

TRUST THE SCIENCE THAT CARBON IS GOING TO KILL US ALL.

TRUST THE SCIENCE THAT BIG PHARMA KNOWS BEST.

BUT WHAT ABOUT TRUSTING THE SCIENCE OF EATING WELL AND EXERCISING? DIABETES, HEART DISEASE AND OTHER AILMENTS PLAGUE OUR SOCIETY.

I'M READY TO REVERSE THIS TREND TOGETHER.

MARTIN LUTHER KING SAID WE MUST KEEP MOVING.

IF YOU CAN'T FLY, RUN.

IF YOU CAN'T RUN, WALK.

IF YOU CAN'T WALK, CRAWL.

BUT BY ALL MEANS, KEEP MOVING.

LET'S MOVE.

THANK YOU, STEPHEN THOMPSON.

GOOD AFTERNOON, MAYOR, VICE MAYOR AND COUNCIL MEMBERS.

MY NAME IS STEPHEN THOMPSON AND I SERVE AS A SUPERVISOR WITHIN THE SUSTAINABILITY DIVISION.

AND I'M JUST HERE THIS AFTERNOON TO INVITE YOU ALL, AS WELL AS ANY MEMBERS OF THE PUBLIC WHO ARE HERE IN PERSON OR ONLINE, TO THE EARTH DAY CELEBRATION HAPPENING

[00:05:09]

TO 2 P.M.

AT BUSHMASTER PARK.

WE HAVE OVER 50 ORGANIZATIONS WHO WILL BE TABLING AT THE EVENT PROMOTING SUSTAINABILITY, CONSERVATION AND CARE FOR OUR SHARED SPACES.

THERE WILL BE LIVE MUSIC, FOOD TRUCKS, VOLUNTEER OPPORTUNITIES AND FOR THE FIRST TIME WE ARE OFFERING A BIKE VALET.

SO IF ANYONE WANTS TO PEDAL THEIR WAY TO BUSHMASTER PARK, YOU CAN STORE YOUR PEDALED DEVICE IN OUR BIKE VALET.

SO THAT IS ALL.

AND IF YOU WANT MORE INFORMATION, YOU ARE WELCOME TO VISIT OUR WEB PAGE JUST BY TYPING INTO A SEARCH ENGINE CITY OF FLAGSTAFF EARTH DAY CELEBRATION OR SENDING ME AN EMAIL AT STEPHEN THOMPSON AT FLAGSTAFF, AZ.GOV.

THANK YOU AND HOPE TO SEE ALL OF YOU THERE.

THANK YOU, WILLIAM BEDLOE.

BEDLAM. MY APOLOGIES.

GOOD AFTERNOON, CITY COUNCIL.

I COME TO YOU AS A BUSINESS OWNER.

MY ADDRESS IS 4183 EAST HUNTINGTON DRIVE.

I COME HERE TODAY TO ASK YOU GUYS FOR SOME HELP.

THE HOMELESS FACTOR OVER THERE IS DISGUSTING.

THOUGH CAMPING IN THE CITY STREET, THE GARBAGE VEHICLES, THE DEFECATION IN MY DRIVEWAY THAT I HAVE TO PUT UP WITH EVERY DAY FROM CLEANING UP HUMAN FECES FROM THESE PEOPLE, THE ALLOWED TO BE DRUNK AND DISORDERLY, AND DRINKING IN THE STREETS ALL DAY LONG AND THEN BE ALLOWED TO BE LET INTO THAT SHELTER I'VE HAD ON MANY OCCASIONS.

I'VE CALLED THE CITY OF FLAGSTAFF POLICE DEPARTMENT.

THEY TELL ME THERE'S NOTHING THAT THEY CAN DO ABOUT IT, BUT YET THERE'S A CAMPING LAW INSIDE OF THE CITY OF FLAGSTAFF.

BUT IT WAS COLD AND NOW WE DON'T WANT THEM MOVED.

I'M JUST ASKING YOU GUYS FOR HELP.

I'VE DROVE STREETS IN MEXICO THAT ARE CLEANER THAN MY STREET THAT I HAVE MY BUSINESS ON.

I HAVE HELP THAT COME IN AND OUT OF MY OFFICE AT NIGHT THAT ARE AFRAID TO EVEN SHOW UP TO MY OFFICE IN THE MIDDLE OF THE NIGHT BECAUSE OF THE DRUNKS, BECAUSE OF THE PEOPLE HARASSING MY OFFICE HELP THAT ARE THERE.

IT IS AN ONGOING PROBLEM.

I'VE OWNED THIS BUILDING FOR FIVE YEARS NOW.

I HAVE BEEN THERE. I HAVE CALLED THE CITY POLICE DEPARTMENT.

I HAVE DONE EVERYTHING THAT I CAN DO AND IT IS DISGUSTING.

IT NEEDS TO BE CLEANED UP, SOMEBODY HAS TO DO SOMETHING ABOUT IT.

AND I HAVE TRIED AND TRIED AND TRIED AND I CAN'T, I JUST, I DON'T UNDERSTAND.

I PAY MY TAXES, I DO ALL MY STUFF.

I RUN A BUSINESS. WE DO A LOT OF WORK FOR THE CITY OF FLAGSTAFF, YOU KNOW, AND IT'S IT'S DISGUSTING.

I EVEN HAVE THE COPS SHOW UP AND THE COPS TELL ME THAT THIS IS THE WORST PLACE IN TOWN THAT THEY'VE SEEN, THAT IT'S NOTHING.

THERE'S NOWHERE ELSE THAT LOOKS LIKE THIS.

I ENCOURAGE YOU ONE DAY TO GET IN YOUR CAR AND DRIVE DOWN THAT ROAD AND TELL ME WHAT IT LOOKS LIKE IT IS, CAMPERS.

AND JUST ONE GUY FULL ON, PULLS A CAMP TRAILER ALL THE WAY APART, REBUILDS IT WITH PALLETS, AND PUTS TARPS OVER IT.

IT'S BEEN THERE FOR A YEAR IN THE SAME SPOT.

JUNK CARS.

THERE'S A PALLET BUSINESS RIGHT BESIDE ME.

HE CAN'T EVEN DO HIS BUSINESS BECAUSE HE CANNOT GET IN AND OUT OF HIS GATES BECAUSE OF ALL THE JUNK THAT IS PARKED IN THE MIDDLE OF THE ROAD.

THE STREET'S DANGEROUS.

THERE'S VEHICLES PARKED WHERE THEY'RE NOT SUPPOSED TO BE PARKED, LIKE YOU CAN BARELY GET IN AND OUT OF YOUR DRIVEWAYS.

WHEN THESE PEOPLE SHOW UP WITH THEIR MOTOR HOMES AND THEY LIVE IN THEM FOR MONTHS ON END THERE, AND NOTHING'S DONE ABOUT IT.

I JUST COME TO YOU GUYS TODAY TO ASK YOU TO HELP ME CLEAN THIS UP.

THANK YOU, THANK YOU.

[5. COUNCIL LIAISON REPORTS]

LET'S START WITH COUNCIL MEMBER MATTHEWS.

I DON'T HAVE ANYTHING AT THIS TIME.

THANK YOU. MAYOR. COUNCIL MEMBER HARRIS.

I ATTENDED THE PARKS AND REC COMMISSION MEETING YESTERDAY, AND JUST GOT A LOT OF GOOD INFORMATION.

I MET OUR PARK RANGER.

HE HAPPENS TO BE A HE.

HE WORKS FRIDAY THROUGH TUESDAY.

I BELIEVE THE DAYS FROM 1030 TO 7, HE TALKED ABOUT THE WHAT HE'S DOING IN THE PARKS.

AND BASICALLY WHAT HE'S DOING IN THE PARKS IS JUST MAKING SURE THAT PEOPLE UNDERSTAND THE RULES AND THE POLICIES OF THE PARK DE-ESCALATING SITUATIONS BEFORE WE HAVE TO CALL IN LAW ENFORCEMENT. AND HE WAS SAYING THAT THAT WAS THAT HE SEES A LOT OF VALUE IN HIS ROLE AND IN THAT POSITION.

AND THE UPDATE ON THE PONDEROSA PARK SPORTS COURTS, EVERYTHING IS MOVING ALONG, AND THEY SHOULD BE STARTING CONSTRUCTION SHORTLY.

WE'RE PROBABLY GET A LOT OF CALLS FROM THE PUBLIC REGARDING SOME OF THE CONSTRUCTION IN THAT AREA, AND EVERYONE'S JUST GOING TO HAVE TO BE A LITTLE PATIENT BECAUSE WE

[00:10:07]

SO THANK YOU.

THAT'S ALL FOR ME.

THANK YOU, VICE MAYOR.

I DON'T HAVE ANYTHING.

COUNCIL MEMBER MCCARTHY.

NOTHING TODAY. THANK YOU.

COUNCIL MEMBER. SWEET.

THANK YOU. MAYOR. I ATTENDED THE BPAC MEETING AND A LITTLE UPDATE.

THERE ARE SEVEN NEW BEAUTIFICATION AND ACTION GRANTS THAT ARE IN PROCESS OF REVIEW BY BPAC, WITH APPROVAL DECISIONS HAPPENING IN MAY.

THERE ARE TWO MURALS, THREE UTILITY CABINETS, A LABYRINTH IN SUNNYSIDE, AND A HISTORICAL BRICK PROJECT IN LA PLAZA VIEJA.

SUPER EXCITING.

I LOVE THOSE MEETINGS.

WEDNESDAY THERE IS A MOUNTAIN LION BOARD MEETING AT 10 A.M.

THURSDAY. THERE'S THE WATER COMMISSION HERE IN THE CHAMBERS AT FOUR AND FRIDAY THERE IS A NAMI MEETING DOWN IN CHINO VALLEY.

I'LL BE OUT OF TOWN, SO I'LL BE ATTENDING VIRTUALLY ON THOSE.

THANK YOU. COUNCIL MEMBER HOUSE.

THANK YOU. MAYOR.

THE HOUSING COMMISSION MEETING FOR APRIL WAS CANCELED.

THEY DON'T HAVE AN AGENDA FOR THIS MONTH.

SO WE WILL RECONVENE NEXT MONTH.

I WAS ABLE TO ATTEND THE FLAGSTAFF SISTER CITIES MEETING WITH THE MAYOR.

AND HAVE SOME GREAT CONVERSATIONS WITH THEM ABOUT SOME POTENTIAL PROGRAMS COMING UP THERE.

AND THIS PAST FRIDAY, I WAS ABLE TO, ON BEHALF OF THE MAYOR AND THE CITY COUNCIL, ATTEND THE TEEN CHALLENGE ARIZONA BANQUET.

THAT WAS ABSOLUTELY PHENOMENAL.

IF ANYBODY HAS AN OPPORTUNITY TO GET TO THAT EVENT, I 100% GUARANTEE IT.

IT WAS ONE OF THE MOST INSPIRATIONAL THINGS THAT I HAVE GOTTEN TO IN A WHILE.

TO HEAR THOSE PARTICIPANTS AND GRADUATE STORIES OF SUCCESSFUL RECOVERY AND TURNING THEIR LIVES AROUND, RECONNECTING WITH FAMILY FINDING EMPLOYMENT AND ALL OF THE THINGS THAT CAME FROM THAT RECOVERY JOURNEY.

IT WAS JUST A REALLY WONDERFUL NIGHT AND ALSO VERY SUCCESSFUL.

I BELIEVE THEY EXCEEDED THEIR FUNDRAISING GOAL WITHIN THE COUPLE OF HOURS OF THAT EVENING, AND STILL HAD AT LEAST ONE MORE BANQUET IN THE STATE. COMING UP.

SO IT WAS REALLY, REALLY AMAZING.

THANK YOU. THANK YOU.

NOTHING FROM ME.

[A. Consideration of Appointments: Open Space Commission. STAFF RECOMMENDED ACTION: Make one appointment to a term expiring April 2027. ]

APPOINTMENTS. THIS IS AN APPOINTMENT TO THE OPEN SPACE COMMISSION.

AND. VICE MAYOR IS MAKING THIS APPOINTMENT.

MADAM MAYOR, I WOULD LIKE TO NOMINATE JULITA BORBON RUNBECK FOR THE POSITION.

I'LL SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? AYE. ANY OPPOSED? ALL RIGHT. THANK YOU TO ALL THE APPLICANTS.

AND THAT WAS FOR A TERM EXPIRING APRIL 2027.

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

CONSENT AGENDA ITEMS ARE CONSIDERED BY THE CITY COUNCIL TO BE ROUTINE, UNLESS A MEMBER OF THE CITY COUNCIL EXPRESSES A DESIRE AT THIS MEETING TO REMOVE AN ITEM FROM THE CONSENT AGENDA FOR DISCUSSION.

THE CONSENT AGENDA WILL BE ENACTED BY ONE MOTION APPROVING THE RECOMMENDATIONS UNLESS OTHERWISE INDICATED.

EXPENDITURES APPROVED BY COUNCIL ARE BUDGETED ITEMS, SO UNDER THE CONSENT AGENDA WE HAVE A, B, C, AND D ARE THERE. IS THERE ANYTHING THAT ANYONE ON THE COUNCIL WOULD LIKE TO PULL FOR DISCUSSION? OKAY, THEN I WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA.

MAYOR. I'LL MOVE TO APPROVE CONSENT AGENDA ITEMS A THROUGH D AS PRESENTED.

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

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

ANY OPPOSED? ALL RIGHT. MOVING DOWN TO ROUTINE ITEMS.

[A. Consideration and Adoption of Ordinance No. 2024-09: An ordinance of the City Council of the City of Flagstaff amending the Flagstaff City Code, Chapter 1-14, Personnel System by amending the Employee Handbook of Regulations, Section 1-70-020 Employee Wellness and 1-50-039 Purchase Day Program; providing for repeal of conflicting ordinances; severability; authority for clerical corrections; and establishing an effective date. STAFF RECOMMENDED ACTION: Read Ordinance No. 2024-09 by title only for the final time City Clerk reads Ordinance No. 2024-09 by title only (if approved above) Adopt Ordinance No. 2024-09]

AND TONIGHT WE ARE TO READ THE ORDINANCE BY TITLE FOR THE FINAL TIME AND THEN ADOPT THE ORDINANCE.

WE HAD PRESENTATIONS PREVIOUSLY AND I WILL ENTERTAIN A MOTION TO READ UNLESS ANYONE HAS ANY QUESTIONS OR COMMENTS.

COUNCIL MEMBER MATTHEWS.

MAYOR, I'D LIKE TO MOVE TO READ ORDINANCE NUMBER 2024-09 BY TITLE ONLY FOR THE FINAL TIME.

I'LL SECOND. ANY DISCUSSION?

[00:15:01]

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF.

AMENDING THE FLAGSTAFF CITY CODE, CHAPTER ONE DASH 14 PERSONNEL SYSTEM BY AMENDING THE EMPLOYEE HANDBOOK OF REGULATIONS, SECTION 1-70-020 EMPLOYEE WELLNESS AND 150-039 PURCHASED A PROGRAM PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES, SEVERABILITY AUTHORITY FOR CLERICAL CORRECTIONS, AND ESTABLISHING AN EFFECTIVE DATE.

THANK YOU. DO I HAVE A MOTION TO ADOPT? SO MOVED. IS THERE A SECOND? I'LL SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? AYE, AYE. ANY OPPOSED? ALL RIGHT ORDINANCE ADOPTED ON TO BE CONSIDERATION AND ADOPTION OF ORDINANCE NUMBER 2024 DASH 11.

[B. Consideration and Adoption of Ordinance No. 2024-11: An ordinance of the City Council of the City of Flagstaff amending Flagstaff City Code, Chapter 1-14, Personnel System, Section 1-14-001-0006, Employee Advisory Committee, Subsection 1-14-001-0006.1, Definitions, and the Employee Handbook of Regulations, Section 1-10-070, Employee Advisory Committee; providing for repeal of conflicting ordinances; severability; authority for clerical corrections; and establishing an effective date. STAFF RECOMMENDED ACTION: Read Ordinance No. 2024-11 by title only for the final time City Clerk reads Ordinance No. 2024-11 by title only (if approved above) Adopt Ordinance No. 2024-11]

AND WE ALSO HAD A PRESENTATION ABOUT THIS.

SO UNLESS ANY COUNCIL MEMBERS HAVE QUESTIONS OR COMMENTS, I WILL ENTERTAIN A MOTION TO READ THE ORDINANCE BY TITLE ONLY FOR THE FINAL TIME.

MAYOR, I MOVE TO READ ORDINANCE NUMBER 2024-11 BY TITLE ONLY FOR THE FINAL TIME.

I'LL SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? AYE AYE AYE AYE.

ANY OPPOSED? CITY CLERK, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, ARIZONA.

AMENDING THE FLAGSTAFF CITY CODE.

CHAPTER ONE DASH 14 PERSONNEL SYSTEM, SECTION ONE DASH.

14 DASH 001-0006 EMPLOYEE ADVISORY COMMITTEE.

SUBSECTION ONE DASH 14 DASH 001-0006.1.

DEFINITIONS AND THE EMPLOYEE HANDBOOK OF REGULATIONS, SECTION ONE DASH TEN DASH 070 EMPLOYEE ADVISORY COMMITTEE PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES. SEVERABILITY AUTHORITY FOR CLERICAL CORRECTIONS AND ESTABLISHING AN EFFECTIVE DATE.

CAN I GET A MOTION TO ADOPT? I MOVE TO ADOPT ORDINANCE NUMBER 2024-11.

CAN I GET A SECOND? I'LL SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? AYE. AYE. ANY OPPOSED?

[C. Consideration and Adoption of Ordinance No. 2024-12: An ordinance of the City Council of the City of Flagstaff, amending the Flagstaff City Code, Title 9 Traffic, Chapter 9-01 Traffic Code, Section 9-01-001-0002 Specific Speed Limits; providing for penalties, repeal of conflicting ordinances, severability, and establishing an effective date. STAFF RECOMMENDED ACTION: Read Ordinance No. 2024-12 by title only for the final time City Clerk reads Ordinance No. 2024-12 by title only (if approved above) Adopt Ordinance No. 2024-12]

SO WE ARE HERE TO READ THE ORDINANCE BY TITLE ONLY FOR THE FINAL TIME CAN I GET A MOTION.

MAYOR I'LL MOVE TO READ ORDINANCE NUMBER 2024-12 BY TITLE ONLY FOR THE FINAL TIME.

AND A SECOND.

I'LL SECOND ANY DISCUSSION.

ALL THOSE IN FAVOR? AYE, AYE. ANY OPPOSED? ALL RIGHT. CITY CLERK, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF AMENDING THE FLAGSTAFF CITY CODE, TITLE NINE, TRAFFIC.

CHAPTER 9-01 TRAFFIC CODE SECTION 9-01001-0002.

SPECIFIC SPEED LIMITS PROVIDING FOR PENALTIES.

REPEAL OF CONFLICTING ORDINANCES.

SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE.

AND CAN I GET A MOTION TO ADOPT? MAYOR. I'LL MOVE TO ADOPT ORDINANCE NUMBER 2020 4-12.

THANK YOU. IN A SECOND.

I'LL SECOND ANY DISCUSSION.

ALL THOSE IN FAVOR? AYE AYE AYE.

ANY OPPOSED? ALL RIGHT. MOVING RIGHT ALONG ON DOWN TO D CONSIDERATION AND ADOPTION OF RESOLUTION NUMBER 2024-15.

[D. Consideration and Adoption of Resolution No. 2024-15 and Ordinance No. 2024-13: A Resolution of the City Council of the City of Flagstaff, Coconino County, Arizona declaring as a public record that certain document filed with the City Clerk entitled "2024 Amendments to Flagstaff City Code, Title 13, Engineering Design and Standards and Specifications for New Infrastructure." and an Ordinance of the City Council of the City of Flagstaff, Coconino County, Arizona amending the Flagstaff City Code, Title 13, Engineering Design Standards and Specifications for New Infrastructure. STAFF RECOMMENDED ACTION: Adopt Resolution No. 2024-15 Read Ordinance No. 2024-13 by title only for the final time City Clerk reads Ordinance No. 2024-13 by title only (if approved above) Adopt Ordinance No. 2024-13]

THIS IS REGARDING AMENDMENTS TO FLAGSTAFF CITY CODE ENGINEERING DESIGN AND STANDARDS AND SPECIFICATIONS.

THIS TWO HAS BEEN DISCUSSED AND WE HAD A PRESENTATION.

SO CAN I GET UNLESS ANYONE HAS ANY QUESTIONS OR COMMENTS CAN I GET A MOTION TO ADOPT RESOLUTION NUMBER 2024-15. MAYOR, I MOVE TO ADOPT RESOLUTION NUMBER 2024-15.

THANK YOU. CAN I GET A SECOND? I'LL SECOND. ALL RIGHT.

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

AND CAN I GET A MOTION TO READ ORDINANCE NUMBER 2024-13 BY TITLE ONLY FOR THE FINAL TIME.

SO MOVED. CAN I GET A SECOND? I'LL SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? AYE. AYE. ANY OPPOSED? CITY CLERK.

[00:20:01]

AMENDING THE FLAGSTAFF CITY CODE TITLE 13.

ENGINEERING DESIGN STANDARDS AND SPECIFICATIONS FOR NEW INFRASTRUCTURE.

BY ADOPTING BY REFERENCE THAT CERTAIN DOCUMENT ENTITLED 2024 AMENDMENTS TO FLAGSTAFF CITY CODE TITLE 13 ENGINEERING DESIGN STANDARDS AND SPECIFICATIONS FOR NEW INFRASTRUCTURE PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES.

SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE.

CAN I GET A MOTION TO ADOPT? SO MOVED. I'LL SECOND ANY DISCUSSION.

ALL THOSE IN FAVOR? AYE. ANY OPPOSED?

[A. Consideration and Adoption of Resolution No. 2024-18: A resolution of the Flagstaff City Council, authorizing the acquisition of real property interests necessary for the Lone Tree Overpass Project, a public use; providing for delegation of authority, condemnation authority, repeal of conflicting resolutions, and establishing an effective date STAFF RECOMMENDED ACTION: Read Resolution No. 2024-18 by title only City Clerk reads Resolution No. 2024-18 by title only (if approved above) Adopt Resolution No. 2024-18]

THAT'S USUALLY A GOOD THING, RIGHT? GOOD AFTERNOON, MAYOR AND COUNCIL, BRYCE DOTY.

I'M THE REAL ESTATE MANAGER.

TODAY I HAVE TWO PARCELS THAT FOR WHICH WE HAVE BEEN UNABLE TO SUCCESSFULLY COME TO A CONCLUSION TO ACQUIRE LAND.

AND THESE ARE TWO PARCELS NEEDED FOR THE LONE TREE ACQUISITION.

I JUST HAVE A QUICK MAP.

I WANT TO SHOW YOU TO RUN THROUGH THESE, BUT THIS RESOLUTION AUTHORIZES FILING CONDEMNATION ACTIONS ON THESE OUR CURRENT PROJECT SCHEDULE.

WE'RE JUST OUT OF TIME ON THESE.

SO WE'RE TRYING TO GET THESE RIGHT TO WORK ON THESE LANDS.

IN TIME FOR THE PROJECT SCHEDULE.

WE MAY STILL SETTLE THESE WITH THEM OUTSIDE OF ANY CONDEMNATION ACTIONS, BUT WE'RE TRYING TO MOVE FORWARD SO THAT WE HAVE THEM FOR THE PROJECT TIMELINE.

HERE'S WHERE WE ARE IN THE LONE TREE OVERPASS WORLD.

WE'RE AT THE INTERSECTION OF LONE TREE AND BUTLER.

THESE TWO STARS ARE WHERE THESE TWO PARCELS ARE.

THE FIRST ONE IS OWNED BY SVD WORKS.

WE NEED 458FT² OF RIGHT OF WAY.

ON THIS MAP RIGHT HERE, WE'RE TALKING ABOUT THIS AREA THAT I'M POINTING TO HERE.

MY NEXT SLIDE WILL KIND OF HONE IN ON THAT.

WE ALSO NEED 1000FT² OF TCE OR TEMPORARY CONSTRUCTION EASEMENT ON IT.

SO THIS IS WHERE WE ARE.

WE JUST NEED THIS LITTLE CORNER CUT WHERE WE'RE GOING TO BE PUTTING IN THE NEW SIDEWALK THERE.

WE'VE MADE OUR OFFERS.

WE'VE KIND OF FOLLOWED ALL THE ALL OF THE REQUIREMENTS.

WE DID ENTERTAIN SOME POSSIBILITIES OF POTENTIALLY TRADING IN THE EXCESS LAND RIGHT OF WAY.

SO THAT MIGHT BE COMING BACK, YOU KNOW, LATER ON.

BECAUSE THERE IS SOME ADJACENT TO HIS.

BUT WE JUST COULDN'T MAKE ANY OF THE UNIT VALUATIONS ENCOUNTERS WORK.

SO WE'RE PROCEEDING ASKING FOR THIS RESOLUTION TONIGHT SO THAT WE HAVE THE AUTHORITY TO TO CONDEMN.

AND THE NEXT PARCEL IS OWNED BY CAMPUS CREST.

THIS IS ACTUALLY IT'S BASICALLY THE COMMON AREA OF THE THE APARTMENT COMPLEX OVER HERE.

WE NEED ABOUT 9969FT² OF RIGHT OF WAY, AND THEN WE NEED 2213FT² OF TEMPORARY CONSTRUCTION EASEMENTS.

AND IT REALLY IT IS JUST HERE ON THE EDGE HERE BASICALLY PUTTING IN NEW SIDEWALK.

AND SO THE RIGHT OF WAY LINE IS GOING TO BE THAT NEW BLUE LINE.

AND WE NEED TCE TO INSTALL THAT NEW SIDEWALK THERE.

AGAIN WE MADE OFFERS, FOLLOWED ALL THE, THE STEPS ON THIS.

WE'VE JUST BEEN UNABLE TO REALLY CLOSE THESE TRANSACTIONS.

SO THAT'S WHAT THIS RESOLUTION IS ABOUT TODAY.

THAT'S EVERYTHING I GOT.

IF YOU HAVE ANY QUESTIONS, LET ME KNOW.

COUNCIL. ANY QUESTIONS? CAN I GET A MOTION TO READ THE ORDINANCE? MAYOR. I MOVE THAT WE READ ORDINANCE 2024 DASH 18 BY TITLE ONLY.

IS WE'RE LOOKING AT.

OH YES, YOU ARE CORRECT.

YEP. THAT'S THE ONE WE'RE LOOKING AT.

CAN I GET A SECOND? I'LL SECOND. ANY DISCUSSION.

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

A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL AUTHORIZING CONDEMNATION OF REAL PROPERTY FOR THE LONE TREE OVERPASS PROJECT.

PROVIDING FOR DELEGATION OF AUTHORITY AND ESTABLISHING AN EFFECTIVE DATE.

THANK YOU. I MOVE TO ADOPT RESOLUTION 2024 DASH 18.

THANK YOU. CAN I GET A SECOND? I'LL SECOND. ALL RIGHT.

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

ANY OPPOSED? ALL RIGHT. THANK YOU.

AND ALL RIGHT.

[B. Consideration and Adoption of Ordinance No. 2024-14: An ordinance of the City Council of the City of Flagstaff, ratifying the grants of easements and real property; and formally accepting grants of easements and real property; providing for severability, authority for clerical corrections, and establishing an effective date. STAFF RECOMMENDED ACTION: At the April 16, 2024 Council Meeting: 1) Read Ordinance No. 2024-14 by title only for the first time 2) City Clerk reads Ordinance No. 2024-14 by title only (if approved above) At the May 7, 2024 Council Meeting: 3) Read Ordinance No. 2024-14 by title only for the final time 4) City Clerk reads Ordinance No. 2024-14 by title only (if approved above) 5) Adopt Ordinance No. 2024-14 ]

GOOD AFTERNOON, HONORABLE MAYOR, VICE PRESIDENT AND COUNCIL.

VICE MAYOR AND COUNCIL MEMBERS.

[00:25:03]

AND I'M PRESENTING AN ORDINANCE FOR THE RATIFICATION OF THE EASEMENTS FOR THIS YEAR.

AND I WAS JUST HERE A FEW MONTHS AGO, BUT WE WERE A LITTLE BIT LATE ON LAST YEAR'S, AND THAT'S WHY THAT HAPPENED.

AND SO THIS WILL BE DONE ANNUALLY IN APRIL EACH YEAR.

SO I AM ASKING FOR YOUR CONSIDERATION TO APPROVE ORDINANCE 2024 DASH 14.

FOR THE TRANSFER OF THE EASEMENTS AND REAL PROPERTY INTEREST TO THE CITY OF FLAGSTAFF.

THANK YOU, THANK YOU.

COUNCIL. ANY QUESTIONS OR COMMENTS? I WILL ENTERTAIN A MOTION TO READ THE ORDINANCE.

MAYOR. I'LL MOVE TO READ ORDINANCE NUMBER 2020 4-14 BY TITLE ONLY FOR THE FIRST TIME.

CAN I GET A SECOND? I'LL SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? AYE. AYE AYE AYE.

ANY OPPOSED? ALL RIGHT. CITY CLERK.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, RATIFYING THE GRANT AND RESERVATION OF EASEMENTS, AND FORMALLY ACCEPTING DEDICATIONS AND DONATIONS OF EASEMENTS AND REAL PROPERTY INTERESTS, PROVIDING FOR SEVERABILITY, AUTHORITY FOR CLERICAL CORRECTIONS AND ESTABLISHING AN EFFECTIVE DATE.

THANK YOU.

THANK YOU. THANK YOU.

[C. Consideration and Approval of Cooperative Agreement: A Cooperative Agreement between the City of Flagstaff and Flagstaff Metropolitan Planning Organization for the purposes of a cash advance fund. STAFF RECOMMENDED ACTION: Approve the Cooperative Agreement between the City of Flagstaff and Flagstaff Metropolitan Planning Organization for the purposes of a cash advance fund.]

AFTERNOON, MAYOR, VICE MAYOR AND CITY COUNCIL.

COMING FROM THE BIG SCREEN.

THIS ITEM BEFORE YOU TODAY, ITEM NINE, C IS A COOPERATIVE AGREEMENT WITH OUR ONE OF OUR GREAT PARTNERS, THE FLAGSTAFF METROPOLITAN PLANNING ORGANIZATION.

THIS IS TO ASSIST THEM AND HELP THEM WITH A CASH ADVANCE FUND.

AS WE KNOW, AS A CITY, WHEN YOU HAVE FUNDS, WHICH WITH HIGH GRANTS, THERE TAKES TIME TO GET REIMBURSEMENTS BACK FROM THE STATE OR FEDERAL GOVERNMENT.

AND SO WE'RE JUST TRYING TO ASSIST THE MPO IN MANAGING THEIR CASH BALANCES.

WITH A CASH ADVANCE FUND THAT WILL BE INVESTED ON OUR BEHALF AND ALLOW THEM FOR TIMELY PAYMENTS WHILE THEY'RE WAITING FOR REIMBURSEMENTS.

SO THIS IS A COOPERATIVE AGREEMENT WE'RE LOOKING FOR YOUR APPROVAL FOR.

COUNCIL. DO YOU HAVE ANY QUESTIONS? COUNCIL MEMBER MCCARTHY.

I'LL JUST NOTE THAT THE MPO, OTHERWISE KNOWN AS METRO PLAN, APPROVED THIS RECENTLY.

WAIT A MINUTE. RANDY, AM I CORRECT OR IS THAT JUST ON THE UPCOMING AGENDA? THAT WAS AT THE LAST MEETING.

OKAY, SO I AM CORRECT.

THANK YOU. APPROVED ASKING FOR THIS OR ENTERING INTO THIS AGREEMENT.

ALL RIGHT. CAN I GET A MOTION TO.

WAIT A MINUTE. CAN I GET A MOTION TO APPROVE THE COOPERATIVE AGREEMENT? MAYOR, I MOVE TO APPROVE THE COOPERATOR COOPERATIVE AGREEMENT BETWEEN THE CITY OF FLAGSTAFF AND FLAGSTAFF METROPOLITAN PLANNING ORGANIZATION FOR THE PURPOSES OF A CASH ADVANCE FUND.

ALL RIGHT. CAN I GET A SECOND? I SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? AYE. ANY OPPOSED? ALL RIGHT.

THANK YOU. RICK.

[D. Consideration and Adoption of Resolution No. 2024-19: A resolution of the Flagstaff City Council adopting a notice of intention to increase water, sewer, and reclaimed water rates or rate components, fees, or service charges; and setting a public hearing date on June 18, 2024. STAFF RECOMMENDED ACTION: Read Resolution No. 2024-19 by title only City Clerk reads Resolution No. 2024-19 by title only (if approved above) Adopt Resolution No. 2024-19]

THIS IS ADOPTING A NOTICE OF INTENTION TO INCREASE WATER, SEWER AND RECLAIMED WATER RATES, OR RATE COMPONENTS, FEES OR SERVICE CHARGES.

ALL RIGHT, SO IS THERE.

WE DISCUSSED THIS RIGHT AT OUR RETREAT.

GO AHEAD. SO JUST FOR THE PUBLIC THIS RESOLUTION JUST SAYS THAT WE'RE CONSIDERING THIS AND THAT WILL LIKELY DO IT, BUT IT DOES NOT INCLUDE ANY SPECIFICS ON HOW MUCH IT'LL BE OR ANYTHING LIKE THAT.

THIS IS JUST THERE'LL BE PUBLIC INFORMATION GIVEN OUT TO THE PUBLIC AND COUNCIL WILL TALK ABOUT THIS AGAIN BEFORE WE ACTUALLY DO ANYTHING.

MADAM MAYOR, IF I MAY, IT IS A LEGAL REQUIREMENT, A CERTAIN AMOUNT OF TIME BEFORE YOU DO THAT.

SO IT'S IT'S JUST A FORMALITY MORE THAN ANYTHING ELSE FOR THAT VERY PURPOSE.

THANK YOU. COUNCIL MEMBER I TOTALLY AGREE.

SO DOES THAT MEAN THAT YOU WILL MOVE TO READ RESOLUTION NUMBER 2024-19 BY TITLE ONLY.

I SO MOVE AND I WONDER IF AARON HAS ANYTHING TO SAY.

OH.

[00:30:04]

AARON YOUNG, WATER RESOURCES MANAGER.

I'M SORRY. I'M TRYING TO PULL UP OUR PRESENTATION AND I WASN'T PAYING ATTENTION.

TO THE QUESTION.

IT WAS PRETTY STRAIGHTFORWARD.

DO YOU HAVE ANYTHING TO SAY? YEAH, WE HAVE A LOT TO SAY.

WE HAVE A PRETTY LENGTHY PRESENTATION.

THE SIX, SEVEN, EIGHT MONTHS WE'VE BEEN AT THIS, WE'RE PULLING IT ALL TOGETHER TONIGHT TO TO PRESENT A RATES PACKAGE AND ADOPT OR CONSIDER ADOPTION OF THE NOTICE OF INTENT.

AND WITH THAT, I'LL INTRODUCE CAROL MOLESKY WITH STANTEC, AND I'LL PULL UP HER PRESENTATION.

THANK YOU.

THANKS. GOOD AFTERNOON, MAYOR AND MEMBERS OF COUNCIL.

I'M BACK. AND THIS TIME YOU'RE GOING TO SEE THE WHOLE PICTURE TONIGHT.

FIRST OF ALL, I JUST WANTED TO REITERATE WHY WE ARE HERE TODAY.

WHY I AM HERE TO GIVE YOU SOME ALL OF THE INFORMATION ALL AT ONCE.

BUT WE ARE ASKING THE CITY COUNCIL TO ADOPT THAT NOTICE OF INTENT TO INCREASE RATES.

OR RATE COMPONENTS, FEES AND SERVICE CHARGES.

WHILE I'M GOING TO BE SHOWING YOU A LOT OF WHAT YOU'VE SEEN BEFORE, THERE ARE SOME NEW COMPONENTS, SO I'D LIKE TO WALK THROUGH THE AGENDA.

WE'RE GOING TO TALK BACK ALL THE WAY BACK FROM WHEN WE STARTED THIS RATE STUDY AND DISCUSS THE FINANCIAL PLANS.

THAT WAS LAST FALL.

I'M GOING TO TALK ABOUT CAPACITY FEES AGAIN.

WE'LL GO OVER THE MISCELLANEOUS FEES THAT YOU HAVE NOT SEEN YET.

AND THEN WE'LL TALK ABOUT COST OF SERVICE RATES.

THEN WE'LL GO BACK TO THAT RESOLUTION AND NEXT STEPS.

WE'VE BEEN TALKING ABOUT THE PIECES FOR ALL OF THESE MONTHS OF THIS RATE STUDY THAT WE STARTED NEARLY TEN MONTHS AGO, AND I'D LIKE TO SHOW YOU THIS GRAPHIC THAT PULLS IT ALL TOGETHER IN TERMS OF WATER SERVICES, RATES, FEES AND CHARGES THAT HELPS OPERATE THE WATER FUND, THE RECLAIMED WATER FUND AND THE WASTEWATER FUND.

SO THESE FEES AND CHARGES COMPRISE MONTHLY USER CHARGES.

THAT'S ABOUT 84% OF YOUR TOTAL REVENUES.

AND THESE ARE THE PRIMARY SOURCES OF FUNDING FOR YOUR OPERATIONS AND MAINTENANCE AND CAPITAL IMPROVEMENTS.

THAT INCLUDES THE BASE FEE AND USAGE FEES THAT ENCOURAGE CONSERVATION.

THESE ARE THE RATE STRUCTURES THAT WE'VE BEEN TALKING ABOUT.

WE MUST KEEP UP WITH THE COST OF INFLATION AND OTHER PRESSURES TO MAINTAIN GOOD SERVICE TO CUSTOMERS.

SO THAT'S WHY WE ARE COMING BACK THROUGH TO THIS RATE STUDY.

THESE FEES ALSO ENSURE ADEQUATE FIRE PROTECTION, AND THESE FEES CAN BE REDUCED BY EXTERNAL FUNDING SOURCES SO LOANS, GRANTS, ETC.. THE NEXT COMPONENT OF THE FEES ARE THE WHAT WE CALL MISCELLANEOUS FEES, AND THOSE COMPRISE ABOUT 7% OF YOUR TOTAL REVENUES FOR THE UTILITIES.

THESE INCLUDE PERMIT FEES, METER FEES, LATE FEES, ETC., AND HAULED WASTE FEES.

AND SO FAR I HAVEN'T TALKED TO YOU ABOUT THEM, BUT I WILL TONIGHT.

THEN WE HAVE THE CAPACITY FEES.

WE SPENT SOME TIME TALKING ABOUT CAPACITY FEES.

THESE MAKE UP 6% OF YOUR ANNUAL REVENUES ON AVERAGE, AND THEY ONLY APPLY TO THOSE NEW METERS OR NEW CONNECTIONS, OR INCREASES IN SIZE OR CAPACITY OF A CONNECTION.

THESE HELP DEFRAY THE COST ASSOCIATED WITH GROWTH.

THEY ALSO AGAIN REDUCE THE IMPACTS TO RATEPAYERS SO THAT WE ARE NOT SUBSIDIZING NEW CUSTOMERS WITH THROUGH RATES.

IN TOTAL, ALL OF THESE SOURCES COMPRISE THE REVENUES THAT FUND THE WATER SERVICES NEEDS.

AND ACTUALLY I SKIPPED THE NON RATE REVENUES.

NON RATE REVENUES ARE THINGS LIKE YOUR INCOME EARNINGS FROM INTEREST AND OTHER TYPES OF FEES THAT ARE JUST 3% OF THE REVENUES.

THOSE ARE EXTERNAL TO THIS STUDY.

SO WE WON'T BE GOING OVER THOSE.

I'M GOING TO START BACK AT THAT FINANCIAL PLANNING TASK THAT WE BEGAN THE STUDY WITH.

AND THESE ARE THIS FORMS THE BASIS FOR THE MONTHLY USER CHARGES.

WAY BACK IN THE FALL.

WE TALKED ABOUT KEY FINANCIAL ASSUMPTIONS AND ADJUSTMENTS, AND WHEN WE STARTED THIS PROCESS, WE HAD TO IDENTIFY AND MAKE SURE WE INCLUDED THESE FINANCIAL ASSUMPTIONS

[00:35:01]

WE WORKED WITH YOUR WATER SERVICES STAFF AND MANAGEMENT SERVICES STAFF AND CUSTOMER SERVICE IN ORDER TO MAKE SURE THAT WE HAD ALL THESE ASSUMPTIONS IN LINE.

SO THESE INCLUDE GROWTH.

WE'RE ASSUMING 1% ACCOUNT GROWTH FOR WATER AND WASTEWATER.

RECLAIMED WATER IS ASSUMING NO GROWTH.

WE HAVE RESERVE TARGETS THAT NEED TO BE MAINTAINED.

AND THAT INCLUDES AN OPERATING RESERVE OF 90 DAYS OF OPERATIONS AND MAINTENANCE EXPENSES.

THERE'S ALSO DEBT SERVICE COVERAGE RATIOS THAT WE MUST MEET AND OTHER METRICS, OTHER FINANCIAL TARGETS THAT HELP US DETERMINE HOW MUCH REVENUE NEEDS TO BE COLLECTED FROM THE FUNDS EACH YEAR.

THE BASE OPERATING BUDGETS WE TALKED ABOUT LAST FALL REGARDING THE O&M OR OPERATIONS AND MAINTENANCE BUDGETS THAT ARE NEEDED TO PAY YOUR EMPLOYEES AND OPERATE YOUR SYSTEMS AND PAY FOR CHEMICALS, ETC..

WE ALSO HAVE COST ESCALATION FACTORS AND CIP ESCALATION.

SO WE HAVE THOSE CAPITAL IMPROVEMENT PROGRAM COSTS THAT ARE NOT ONLY IN TODAY'S DOLLARS BUT ESCALATE OVER TIME.

YOU'LL SEE THE DIFFERENT FUNDING SOURCES.

AND WE HAVE BROUGHT UP THE MAJOR FUNDING FOR PROJECTS SUCH AS THE WATER SUPPLY SECURITY PROJECTS AND THE WASTEWATER TREATMENT PLANT EXPANSION, WHICH SOURCES ARE NOT QUITE IDENTIFIED YET, BUT THEY, YOU KNOW, THEY WILL BE FLESHED OUT OVER TIME.

BACK IN THE FALL. WE STARTED WITH MULTIPLE FINANCIAL SCENARIOS.

THIS IS A RECAP OF THE SCENARIOS THAT WE BROUGHT TO YOU IN OCTOBER, AND THEY RANGE ALL THE WAY FROM YOUR CURRENT BASICALLY KEEP RATES THE SAME APPROACH AND FUND THE APPROVED CIP THAT THE FINANCE TEAM PREPARES IN THE FIVE YEAR BALANCE PLAN.

THEN WE LOOKED AT A CPI OR CONSUMER PRICE INDEX INCREASE.

THAT WAS A 5% INCREASE ANNUALLY, AND THAT WAS ABLE TO FUND A CERTAIN AMOUNT OF OPERATIONS AND MAINTENANCE EXPENSES AND CIP.

THEN WE HAD SOMETHING CALLED FIX AND GO.

SO THIS WAS ADJUST YOUR RATE TO THE LEVEL OF INFLATION AND THEN MOVE ON FROM THERE.

AND THAT TURNED OUT TO BE 8.5% RATE INCREASES EACH YEAR.

THEN WE HAD THAT SCENARIO FOR, WHICH IS A LEVELIZED APPROACH THAT WOULD HELP FULLY FUND THE CAPITAL IMPROVEMENT PROGRAM.

SO NOT JUST THE APPROVED CAPITAL IMPROVEMENTS, BUT THE UNFUNDED PROJECTS AND THE INFORMED PROJECTS FROM YOUR MASTER PLANS.

SO THIS IS THE SCENARIO THAT WE HONED IN ON.

BUT AFTER DISCUSSING THESE PLANS WITH YOU, WE CAME UP WITH SCENARIO FIVE, WHICH WERE LABELING THE ALTERNATIVE OPTION.

AND THAT'S WHERE WE LANDED.

AND THAT'S WHAT DROVE THE ALL THE RESULTS THAT YOU'RE SEEING TODAY.

AND THIS SCENARIO FIVE TAKES A LOOK AT FULLY FUNDING THE CAPITAL IMPROVEMENT PROJECTS, FULLY FUNDING THE BASE OPERATING BUDGET.

HOWEVER, THE LEVEL THE RATE INCREASES ARE LEVELIZED.

THESE RATE INCREASES ALSO DON'T NECESSARILY MEAN THAT'S HOW EVERYONE'S RATES WILL GO UP.

AND THAT'S BECAUSE WE HAVE TO RUN THIS THROUGH THE COST OF SERVICE ANALYSIS AND THE RATE STRUCTURE ANALYSIS, WHICH WE RECENTLY WENT THROUGH.

SO YOU'LL SEE THAT GOING FORWARD.

WE'LL START WITH THE WATER FUND.

AND I'M JUST GOING TO REITERATE THE ASSUMPTIONS THAT WE USED WHEN WE WALKED THROUGH THE FINANCIAL PLANS FOR THE WATER FUND.

BACK AT THE BEGINNING OF THE STUDY.

THIS WAS TEN MONTHS AGO.

WE HAD A FORECAST, A FIVE YEAR FINANCIAL OUTLOOK THAT HAS CHANGED SINCE THEN.

HOWEVER, THAT'S WHERE WE STARTED.

SO YOUR MANAGEMENT SERVICES TEAM HAS SINCE REVISED SOME FUNDING SOURCES AND REVISED SOME ESTIMATES GOING FORWARD FOR OPERATIONS AND MAINTENANCE EXPENSES AND LOANS, ETC..

SO WHAT WE'RE SEEING HERE IS WHERE WE STARTED THE RATE STUDY.

AND THIS AT THE START OF THE RATE STUDY, WE WERE LOOKING AT A DEPLETION OF YOUR CASH RESERVES IN THE WATER FUND.

AND AS I MENTIONED, THIS WAS AT THE BEGINNING OF THE STUDY.

SO EVERYTHING WE LOOKED AT FROM THAT POINT TO TODAY HAS LOOKED AT BOLSTERING THOSE RESERVES, MEETING ALL OF YOUR FINANCIAL TARGETS AND ACCOMPLISHING THAT CIP PROGRAM.

THIS CHART IS NEW FOR YOU.

WE HAVEN'T SHOWN YOU THIS YET, BUT IT TELLS YOU AND SHOWS YOU THE COMPOSITION OF ANNUAL OPERATING EXPENSES PLUS DEBT SERVICE OVER TIME.

WE ARE CURRENTLY IN THE FISCAL YEAR 2024, SO THAT'S OUR FIRST YEAR HERE.

AND THEN THE FIVE YEAR PLAN FOR THIS RATE STUDY GOES FROM FISCAL YEAR 2025 THROUGH 2029, AND WE'RE SHOWING THE NEXT FOUR YEARS THROUGH 2033, SO THAT YOU HAVE AN IDEA FOR HOW WE'RE FORECASTING COSTS TO INCREASE OVER TIME.

[00:40:02]

SO THAT'S SALARIES AND WAGES AND BENEFITS.

AND THEN WE SHOW YOU VARIABLE OPERATIONS AND MAINTENANCE EXPENSES WHICH INCLUDE THINGS LIKE EQUIPMENT MAINTENANCE AND CHEMICALS AND ELECTRICITY EXPENSES, ETC.. THEN THE BLUE SECTION ARE FIXED OPERATIONS AND MAINTENANCE EXPENSES.

THE MAJORITY OF UTILITIES COSTS ARE FIXED.

THAT'S WHY YOU SEE THAT. THAT'S THE LARGEST PIECE OF THE PUZZLE HERE FOR EACH OF THESE BARS.

SO THESE ARE A LOT OF THE THE OTHER EXPENSES THAT YOU HAVE TO OPERATE AND MAINTAIN YOUR SYSTEM.

AND THEN WE HAVE CAPITAL OUTLAYS.

WE HAVE ONGOING OPERATING CAPITAL.

WE HAVE MACHINERY AND EQUIPMENT ETC..

THE DEBT SERVICE PIECE IS THAT TOP SECTION OF THE THE DARK GREEN SECTION FOR THE ANNUAL DEBT SERVICE THAT NEEDS TO BE PAID, BOTH EXISTING AND PROJECTED.

YOU'VE PROBABLY SEEN THIS BEFORE.

THIS FULL SIP LIST FOR THE WATER FUND.

THIS LIST INCLUDES NOT ONLY THE APPROVED SIP PROJECTS THAT YOUR FINANCE TEAM HAS BROUGHT TO YOU, BUT ALSO THE INFORMED CAPITAL IMPROVEMENT PROJECTS THAT HAVE BEEN ON THE BOOKS AND IN THE FORECAST FOR A LONG TIME, PLUS SOME UNFUNDED PROJECTS.

THIS LIST DOES NOT INCLUDE THOSE LARGE SUPPLY WATER SUPPLY PROJECTS, BY THE WAY, BUT IT DOES INCLUDE IN THE ASTERISK PROJECTS.

THESE ARE PROJECTS THAT ARE INTENDED TO BE FUNDING THROUGH GRANTS.

SO YOUR YOUR TEAMS ARE REALLY WORKING HARD TO OBTAIN GRANT FUNDING.

AND THEY THERE'S A FORECAST OF SIGNIFICANT GRANT FUNDING STILL MOVING FORWARD.

IN TOTAL FOR THIS TEN YEAR PLAN.

IN TODAY'S DOLLARS, IT'S ABOUT $182 MILLION.

OF COURSE, ONCE WE ADD ESCALATION, THAT 4% ESCALATION FACTOR EVERY YEAR, THAT ESCALATES TO SOMETHING A LITTLE BIT HIGHER.

214 MILLION.

EXCUSE ME. THIS CHART SHOWS THE BREAKDOWN OF ANTICIPATED FUNDING SOURCES FOR THAT ESCALATED CAPITAL IMPROVEMENT PROGRAM EACH YEAR.

I'M GOING TO REITERATE THAT YOUR MANAGEMENT SERVICES AND FINANCE HAS ACTUALLY COME UP WITH SOME ADDITIONAL OR DIFFERENT FUNDING OPTIONS HERE.

SO THE GRANT FUNDING IS A LITTLE DIFFERENT.

AND THE LOAN PLAN IS IS FORMING.

THIS IS WHERE WE WERE LOOKING TO FUND THESE PROJECTS THROUGH THE FALL.

SO IT'S NOT SET IN STONE.

AS YOU KNOW THESE THESE COSTS CAN CHANGE OVER TIME.

BUT AT THE POINT OF WHERE WE ARE TODAY, WE'RE EXPECTING THE MAJORITY OF THE CAPITAL IMPROVEMENTS TO BE FUNDED THROUGH CASH OR RESERVES.

SO IT'S NOT ALL ANNUAL RATE REVENUES.

IT'S RESERVES THAT HAVE BEEN BUILT UP OVER TIME, THEN GRANTS REVENUE AND FROM BORROWING AND THEN CAPACITY FEES.

THE LITTLE TABLE AT THE BOTTOM SHOWS YOU THAT IT'S ABOUT $20 MILLION A YEAR IN ESCALATED DOLLARS THAT ARE PLANNED TO BE FUNDED THROUGH THIS PROGRAM.

YOU'VE SEEN THIS CHART BEFORE.

THIS REPRESENTS THE OPTION THAT YOU DIRECTED US TO FOLLOW LAST FALL, WHICH WE'RE CALLING THE ALTERNATIVE OPTION.

SO IT'S A LEVELIZED PLAN FOR ADJUSTING RATES OVER TIME FROM 2025 THROUGH 2029 TO ACHIEVE THAT FULL CIP FUNDING LEVEL. NOW, I HAVE TO ALSO MENTION THAT JUST BECAUSE AND WE'VE SEEN THIS, THAT JUST BECAUSE I'M SAYING THERE'S 15% RATE ADJUSTMENTS, THAT DOESN'T MEAN THAT THE RATE INCREASES ARE NECESSARILY 15% FOR EVERY PERSON IN THIS FIRST YEAR.

SO YOU'LL SEE THAT AS WE LOOK AT THE RATES THAT THIS 15% IS A RATE REVENUE ADJUSTMENT THAT IS NEEDED TO ACHIEVE THOSE FINANCIAL TARGETS THAT WE TALKED ABOUT AND THE CAPITAL IMPROVEMENT FUNDING.

WE'LL MOVE ON TO THE WASTEWATER FUND AND YOU'LL SEE THE SAME CHARTS, BUT JUST FROM THE WASTEWATER FUND PERSPECTIVE.

BACK WHEN WE STARTED THE RATE STUDY TEN MONTHS AGO, WE WERE LOOKING AT A SIMILAR SITUATION THAT WITHOUT ADJUSTING RATES AND LOOKING AT YOUR APPROVED CAPITAL IMPROVEMENTS WITH ESCALATION AND A BASE BUDGET ADJUSTMENT FOR YOUR OPERATIONS AND MAINTENANCE EXPENSES, IT LOOKED LIKE THE CASH BALANCES WERE WOULD GOING TO BE DEPLETED VERY QUICKLY.

AND THAT'S WHAT DROVE THIS.

LOOKING AT ALTERNATIVE RATE ADJUSTMENTS, JUST LIKE WE DID FOR WATER.

AGAIN, THIS FORECAST HAS CHANGED.

YOUR MANAGEMENT SERVICES TEAM HAS ADJUSTED THESE FORECASTS.

BUT THIS IS WHAT DROVE THE THE BULK OF THE STUDY FOR WASTEWATER.

WE'RE SHOWING A SIMILAR CHART FOR THE COMPOSITION OF ANNUAL OPERATING AND MAINTENANCE EXPENSES NEEDED FOR WASTEWATER, AS WELL AS THE DEBT SERVICE THAT NEEDS

[00:45:02]

YOU'LL SEE THE PROJECTS INCLUDE SOME.

I'M PRETTY SIGNIFICANT PROJECT.

SO AGING INFRASTRUCTURE REPLACEMENTS THAT ARE PLANNED ANNUALLY AND THE RIO SOLIDS TREATMENT PROJECT, ETC..

SO THERE ARE QUITE SIGNIFICANT PROJECTS ON THIS LIST, INCLUDING SOME UNFUNDED ESTIMATES.

WE'RE SHOWING THESE ALL TOGETHER IN ONE LIST, BUT AS YOU KNOW, THESE ARE SCHEDULED TO BE NEEDED OVER TIME.

THE TOTAL IN TODAY'S DOLLARS IS 116 MILLION.

WHEN YOU APPLY ESCALATION TO THAT TOTAL, IT'S 144 MILLION THAT NEEDS TO BE FUNDED OVER THE NEXT TEN YEARS IN WASTEWATER.

AND WE'RE EXPECTING AGAIN APPROXIMATELY $94 MILLION TO BE FUNDED THROUGH RESERVES OR CASH FROM RATES.

AND NO GRANTS ARE PROJECTED HERE, BUT SOME BORROWING THROUGH REVENUE FUNDED LOANS.

AND THEN CAPACITY FEES ARE A GOOD PORTION OF THESE EXPENSES.

I'D LIKE TO NOTE THAT THE THESE PROJECTS DO NOT INCLUDE ANY GEO BONDED DEBT, SO ANYTHING THAT'S ANY PROJECTS IN THE WASTEWATER FUND THAT ARE PAID FOR THROUGH PROPERTY TAXES FROM THE DEBT THAT'S NOT INCLUDED IN THIS ANALYSIS, IT'S EXTERNAL TO ALL OF THIS.

SHOWING A SIMILAR FORECAST HERE FOR THE WASTEWATER FUND.

THIS ONE IS A LITTLE MORE SIGNIFICANT.

IN THE FIRST TWO YEARS.

IT'S A 25% RATE REVENUE ADJUSTMENT FOR THE FIRST TWO YEARS.

THEN IT DROPS DOWN TO 15% AND THEN 10% ADJUSTMENTS.

THIS IS NEEDED TO BE ABLE TO FUND THAT LEVELIZED CAPITAL IMPROVEMENT PROGRAM AND THE OPERATIONS AND MAINTENANCE EXPENSES.

LASTLY, WE HAVE RECLAIMED RECLAIMED SHOWS A SIMILAR PICTURE WHEN WE STARTED LOOKING AT THE STUDY.

WE ARE LOOKING AT A LITTLE BIT MORE TIME TO USE THE RESERVES AND THE CASH BALANCES TO FUND THE RECLAIM PROGRAM, BUT THEN OVER TIME, IT WAS EXPECTED TO LEVEL OFF AND AND DEPLETE THE CASH RESERVES WITHOUT A RATE INCREASE.

BUT AS WE KNOW, WE'VE TALKED ABOUT THIS, THAT RECLAIMED WATER RATES ARE CURRENTLY A PERCENTAGE OF THE POTABLE WATER RATES.

SO AS YOU ADJUST YOUR POTABLE WATER RATES, THE RECLAIMED WATER RATE ADJUSTMENTS WILL GO INTO EFFECT AND THEREFORE FUND MORE CAPITAL PROJECTS AND BE ABLE TO SUSTAIN THE FUND THROUGH TIME.

WE HAVE A SIMILAR TABLE FOR A SIMILAR CHART SHOWING THE THE COMPOSITION OF EXPENSES.

THERE'S NO DEBT IN THE RECLAIMED WATER FUND CURRENTLY, SO YOU DON'T SEE ANY DEBT SERVICE BAR.

BUT YOU'LL SEE AGAIN, THE FIXED OPERATIONS AND MAINTENANCE EXPENSES ARE THE THE LARGEST PIECE OF THESE ANNUAL EXPENSES.

THE FULL RECLAIMED WATER PROJECT LIST COMPRISES ABOUT $57 MILLION OF PROJECT COSTS IN TODAY'S DOLLARS.

THAT INCLUDES SOME SOME PROJECTS THAT ARE FUNDED THROUGH LOANS, FUTURE LOANS AND AND HOPEFULLY GRANTS. IN TODAY'S EXCUSE ME IN ESCALATED DOLLARS AND LIMITED TO THE AMOUNT THAT COULD BE FUNDED WITH THE PROPOSED RATE PLAN.

THAT IS ABOUT $11.3 MILLION OF PROJECTS THAT CAN BE FUNDED WITH THE PLAN THAT WE'VE BEEN LOOKING AT OVER THE PAST TEN MONTHS.

ALL OF THAT COMES FROM RECLAIMED WATER SALES.

SO 11.3 MILLION IS THE PLAN FOR THE VERSION THAT WE'RE GOING FORWARD WITH.

SIMILAR TO THE OTHER FUNDS.

WE'RE SHOWING YOU THAT FORECAST OF RATE PROJECTIONS AND BECAUSE OF THE CURRENT POLICY, THE THAT IS LIMITING THOSE RECLAIMED WATER RATES TO THE POTABLE WATER RATE INCREASES, WE'RE SHOWING THOSE AT 15% INCREASES.

WE'VE DISCUSSED OVER THE PAST FEW MONTHS THAT THE RECLAIMED WATER FUND IS FUNDED.

IT'S FULLY FUNDED. IT'S NOT BEING SUBSIDIZED.

IT'S JUST THAT THE CAPITAL IMPROVEMENT PROJECTS THAT I SHOWED YOU, THAT BIGGER LIST IS NOT ABLE TO BE FUNDED WITH THESE, THIS LEVEL OF RATE ADJUSTMENTS.

AND WE I, WE HEARD FROM YOU FROM OUR LAST MEETING THAT YOU WOULD LIKE THE CITY TO THE WATER SERVICES, TO

[00:50:04]

I'M GOING TO KEEP MOVING ON TO CAPACITY FEES, IF THAT'S ALL RIGHT.

THIS IS A LOT OF MATERIAL THAT YOU'VE SEEN OVER THE PAST FEW MONTHS.

I HOPE THESE ARE GOOD MEMORIES.

THE CAPACITY FEE SECTION OF THE STUDY TAKES A LOOK AT ANOTHER SECTION OF YOUR CUSTOMERS.

THESE ARE YOUR BRAND NEW CUSTOMERS, SO NEW CONNECTIONS TO THE SYSTEM.

YOU MIGHT RECALL THAT THERE ARE THREE INDUSTRY ACCEPTED APPROACHES TO CALCULATING CAPACITY FEES.

THESE ARE THE BUY IN METHOD, THE INCREMENTAL METHOD, AND THEN A COMBINED METHOD THAT LOOKS AT BOTH OF THOSE.

SO THE BUY IN METHOD LOOKS HISTORICALLY AT YOUR INVESTMENTS IN YOUR CURRENT SYSTEM AND THE CAPACITY AVAILABLE IN YOUR CURRENT SYSTEM.

THE INCREMENTAL METHOD LOOKS FORWARD THAT LOOKS AT YOUR CAPITAL IMPROVEMENTS THAT ARE INTENDED FOR TO TO EXPAND YOUR CAPACITY IN THE SYSTEM.

THE COMBINED METHOD LOOKS AT BOTH.

SO YOU DIRECTED US TO LOOK AT THE COMBINED METHOD.

SO THE COMBINED METHOD FOR WATER CAPACITY FEES AND WASTEWATER CAPACITY FEES TAKES INTO ACCOUNT HISTORICAL SYSTEM INVESTMENTS AND THEN THAT FUTURE GROWTH RELATED CAPITAL IMPROVEMENTS.

PLEASE NOTE ON THIS SLIDE WE'RE NOT SHOWING THE LARGE CAPITAL PROJECTS COSTS, AND THAT WILL COME INTO THE FEE IN A SECOND.

THE SECOND IMPORTANT PIECE OF OUR DISCUSSION REGARDING CAPACITY FEES WAS THE LEVEL OF SERVICE DISCUSSION.

LEVEL OF SERVICE IS THE ASSUMED CAPACITY OF A NEW CONNECTION.

AND THERE ARE A NUMBER OF WAYS YOU COULD LOOK AT THIS.

WE COULD USE THE DESIGN STANDARDS THAT ARE IN CITY CODE, OR WE COULD USE AN ACTUAL USE LEVEL OF SERVICE THAT MORE CLOSELY REFLECTS YOUR RECENT WATER USAGE CHARACTERISTICS AND HOUSEHOLD CHARACTERISTICS.

AFTER REVIEW OF THOSE TWO METHODS, YOU DIRECTED US TO LOOK AT THE ACTUAL USE LEVEL OF SERVICE, WHERE WE'RE LOOKING AT AN ASSUMPTION OF 335 GALLONS PER DAY PER EQUIVALENT RESIDENTIAL UNIT FOR WATER.

AND THEN ON THE WASTEWATER SIDE, WE'RE LOOKING AT BOTH COMPONENTS OF USAGE.

SO 257 GALLONS PER DAY OF CAPACITY FOR WASTEWATER FLOW, PLUS A LOADINGS OR STRENGTH COMPONENT OF 0.67 POUNDS PER DAY OF LOADINGS FOR A TYPICAL CONNECTION TO YOUR SYSTEM.

BY USING THOSE MET, THOSE FACTORS.

THAT'S HOW WE CAN CALCULATE HOW MUCH ONE NEW CONNECTION SHOULD PAY TO BUY IN, AND TO ALSO PAY FOR THE COSTS OF GROWTH IN YOUR SYSTEMS. WHEN WE TALKED WITH YOU ABOUT CAPACITY FEES A FEW MONTHS AGO, AND WE TALKED TO THE WATER COMMISSION, THERE WERE A FEW KEY POINTS THAT WE ASKED FOR DIRECTION AND YOU PROVIDED.

AS I MENTIONED, YOU DIRECTED US TO USE THE COMBINED METHODOLOGY FOR CALCULATING THE FEES WHICH WE'VE DONE, THEN USE THE SYSTEM ACTUALS AS THE BASIS FOR THE LEVEL OF SERVICE OF HOW MUCH ONE NEW CONNECTION REQUIRES.

THEN YOU. YOU ASKED US TO TO INCLUDE THE COST OF FUTURE WATER SUPPLY INFRASTRUCTURE PROJECTS IN THE WATER CAPACITY FEE CALCULATION. SO THAT WOULD GIVE WATER SERVICES THE ABILITY TO START COLLECTING FOR THOSE FUTURE PROJECTS, THOSE FUTURE WATER SUPPLY PROJECTS. NEXT AT THE SAME LEVEL ON THE WASTEWATER SIDE, YOU GAVE US DIRECTION TO CALCULATE CAPACITY FEES SO THAT WATER SERVICES COULD START COLLECTING FEES TOWARDS THE COST OF A NEW WASTEWATER TREATMENT FACILITY.

SO THOSE ARE ALL FACTORS GOING TO TALK ABOUT.

AND THEN FINALLY WE'RE GOING TO INCLUDE A FACTOR OF LOADINGS OR STRENGTHS OF WASTEWATER FLOW INTO THAT CAPACITY FOR WASTEWATER CONNECTIONS.

OUT OF ALL THOSE PROJECTS THAT I SHOWED YOU EARLIER THAT WERE WATER RELATED PROJECTS, WATER FUND PROJECTS, THIS IS THE LIST THAT INCLUDES SOME COMPONENT FOR GROWTH, WHETHER ALL FOR NEW CUSTOMERS OR A PORTION.

SO YOU'LL SEE THAT OUT OF THIS LIST, THERE'S ABOUT $70.5 MILLION OF YOUR TEN YEAR CIP PROJECTS THAT ARE GROWTH RELATED ON THE WATER SIDE, PLUS APPROXIMATELY $230 MILLION FOR FUTURE WATER SUPPLY PROJECTS.

THOSE WERE THE COSTS OF THE FUTURE PROJECTS THAT WE INCLUDED IN THIS CAPACITY.

FEE CALCULATION.

[00:55:03]

AND WHAT'S HIGHLIGHTED IN ORANGE IS YOUR SELECTED OR PREFERRED APPROACH FOR WATER CAPACITY FEES.

WE CALLED IT ONE B, WHICH WAS FUTURE WATER SUPPLY AND USING THE ACTUAL ACTUAL USAGE FOR LEVEL OF SERVICE. THAT TAKES THE EXISTING CAPACITY FEE FOR A THREE QUARTER INCH WATER METER OF $5728 TO $8146.

WE HAVE A AGAIN, WE WERE SHOWING THE INCREASE FOR A TWO INCH COMMERCIAL METER AS WELL.

THE ACTUAL CAPACITY FEE SCHEDULE IS BASED ON WATER METER SIZE, AND THIS TABLE ALL THE WAY AT THE END SHOWS THE PROPOSED FEES BY WATER METER SIZE.

YOU'LL SEE THAT JUST FOR.

FOR COMPARISON'S SAKE, THE MAJORITY OF YOUR CURRENT CUSTOMERS ARE THREE QUARTER INCH WATER METERS BECAUSE THOSE ARE RESIDENTIAL SIZES.

BUT ALSO A LOT OF COMMERCIAL CUSTOMERS HAVE THREE QUARTER INCH METERS, AND THIS JUST SHOWS THEIR AVERAGE MONTHLY USAGE.

SO THIS IS INFORMATION THAT YOU HAD REQUESTED BEFORE.

AN EARTH FACTOR IS AN EQUIVALENT RESIDENTIAL USE FACTOR.

SO THIS MEANS THAT DIFFERENT METER SIZES HAVE DIFFERENT EQUIVALENCIES.

AND THAT'S ACTUALLY HOW WE CALCULATED THE PROPOSED FEES.

WE TAKE THE THREE QUARTER INCH METER FEE AND WE MULTIPLY IT BY THE EARTH FACTOR TO GET THAT DOLLAR AMOUNT.

IF A IF ONE OF YOUR CONNECTIONS IS SEEKING TO INCREASE CAPACITY.

SO INCREASE THE SIZE OF ITS METER, THEN THE THE FEE IS THE DIFFERENCE BETWEEN THE TWO METER SIZES.

SO THE NEW METER VERSUS THE EXISTING METER.

SO IT'S NOT AN ADDITIONAL FEE.

IT'S JUST THAT INCREMENTAL FEE.

MOVING ON TO WASTEWATER.

WE HAVE THAT SIMILAR LIST OF PROJECTS THAT HAS EITHER ENTIRELY A GROWTH RELATED COMPONENT OR A IT LOOKS LIKE 50% IS PRETTY COMMON FOR THESE PROJECTS. SO AT LEAST A PORTION OF ALL THESE PROJECTS IS ATTRIBUTABLE TO GROWTH OR EXPANSIONS OF THE SYSTEM.

AND THAT'S ABOUT $38.2 MILLION PLUS THE WASTEWATER TREATMENT PLANT EXPANSION, WHICH AS I MENTIONED, IS, AGAIN, AS YET NOT DETERMINED YET FOR THE TOTAL FUNDING SOURCE, BUT IT IS IDENTIFIED AS BEING GROWTH RELATED.

SO WE WOULD FUND THAT IN THE CAPACITY FEES.

WE PRESENTED YOU WITH A LOT OF OPTIONS.

ON THE WASTEWATER SIDE. THERE WERE EIGHT AND YOU DIRECTED US TO TO LOOK AT 1D, WHICH IS USING OR INCLUDING THE WASTEWATER TREATMENT EXPANSION COSTS IN THE CAPACITY FEE CALCULATION, USING THE ACTUAL LEVEL OF SERVICE WITH FLOWS AND A LOADINGS COMPONENT. SO GIVEN ALL THAT THE FEE ITSELF HAS FOR A THREE QUARTER INCH RESIDENTIAL METER IS NOT THAT LARGE OF AN INCREASE, BUT IT IS AN INCREASE FROM $3,723 PER CONNECTION TO 4086.

THEN YOU ALSO SEE AN INCREASE ON THE COMMERCIAL OR THE HIGHER METER SIZE.

A BETTER WAY TO LOOK AT IT WOULD BE THIS TABLE, WHICH AGAIN, JUST LIKE FOR THE WATER SIDE, IS BASED ON WATER METERS AND WATER EQUIVALENT METERS.

SO THIS SHOWS YOU THE PROPOSED WASTEWATER FEES BY METER SIZE.

IT IS IMPORTANT TO NOTE THAT FOR LARGER METER SIZES, WE RECOMMEND THAT YOUR WATER SERVICES TAKE A LOOK AT THAT INDIVIDUAL CUSTOMER'S NEEDS, BECAUSE WE'RE LOOKING AT FLOWS AND LOADINGS, RATHER THAN APPLY JUST A STANDARD FACTOR TO THAT ACCOUNT LIKE SAY, THE METERS, A FOUR INCH METER. THE TYPE OF UNIT OR TYPE OF CUSTOMER THAT THAT FOUR INCH METER REPRESENTS IS IMPORTANT IN FACTORING THE APPROPRIATE CAPACITY FEE.

ANOTHER NOTE IS THAT IN YOUR CURRENT CAPACITY FEE SCHEDULE FOR WASTEWATER, YOU'LL NOTICE THAT FOR ALL OF THE RESIDENTIAL SINGLE FAMILY RESIDENTIAL CONNECTIONS, THREE QUARTERS INCH, ONE INCH, 1.5IN, THE FEE IS THE SAME.

AND THAT IS WHAT WE ARE STILL PROPOSING, THAT YOU KEEP THAT FEE FOR SINGLE FAMILY RESIDENTIAL AT THE THREE QUARTER INCH LEVEL.

THE REASON BEHIND THAT IS BECAUSE TYPICALLY WHEN A SINGLE FAMILY RESIDENTIAL PURCHASES A LARGER WATER METER, IT'S FOR OUTDOOR IRRIGATION PURPOSES RATHER THAN INDOOR WATER USE THAT WOULD CONTRIBUTE TO WASTEWATER FLOW.

SO THE EQUIVALENT WASTEWATER USAGE IS STILL ASSUMED TO BE THAT ASSOCIATED WITH THE THREE QUARTER INCH METER.

AND THEN ON THE OTHER SIDE, THE MULTIFAMILY CONNECTIONS.

[01:00:04]

SO IF REGARDLESS OF THE CONNECTION IN THAT MULTIFAMILY UNIT, REGARDLESS OF THAT WATER CONNECTION SIZE, THE FEE IS ASSIGNED AS A THREE QUARTER INCH METER PER UNIT.

SO IF IT'S A 12 UNIT APARTMENT COMPLEX, THAT WOULD BE 12 TIMES 4086 RATHER THAN THE METER SIZE BASED FEE.

THAT'S HOW YOU CURRENTLY ASSESS THAT TYPE OF CHARGE.

AND THAT'S WE'RE PROPOSING NO CHANGE TO THAT.

CAPACITY FEES ARE DONE.

THE NEXT SECTION IS SOMETHING THAT WE HAVEN'T DISCUSSED YET.

THIS IS THE MISCELLANEOUS SERVICE FEES.

MISCELLANEOUS SERVICE FEES ARE THOSE FEES THAT ARE CHARGED FOR NON VOLUME OR NON WATER AND WASTEWATER HOOKUPS.

SO NOT, I SHOULDN'T SAY HOOKUPS.

THESE ARE THINGS LIKE IF YOU HAVE IF YOU HAVE A LATE PAYMENT OR IF YOU GET DISCONNECTED AND YOU WANT TO BE RECONNECTED, OR IF YOU HAVE A PERMIT FOR YOUR SCAVENGER WASTE THAT YOU'RE BRINGING TO THE WASTEWATER TREATMENT PLANT.

THESE ARE ALL SERVICES THAT WATER SERVICES, STAFF AND CUSTOMER SERVICES PERFORM, AND WE WANT TO MAKE SURE THAT THOSE FEES ARE SET APPROPRIATELY SO THAT THEY DON'T HAVE TO BE RECOVERED IN THE WATER AND WASTEWATER RATES.

WHEN WE LOOK AT MISCELLANEOUS FEES AND WE UPDATE THESE FEES, WE TALK TO STAFF MEMBERS AND WE ASK WHAT ACTIVITIES ARE PERFORMED DURING THAT SERVICE SO WE COULD DETERMINE WHO PERFORMS THE SERVICE, HOW MANY HOURS ARE SPENT, AND HOW MUCH REALLY DOES THAT COST.

SO WE BUILD UP THE COST FOR THOSE FEES.

WE HAVE A COST TEMPLATE.

STANTEC HAS A LOT OF MODELS, FINANCIAL MODELS, EXCEL MODELS.

SO WE COMPILE THIS INFORMATION IN A MODEL AND CALCULATE A FEE FOR THAT SERVICE.

THEN WE TALK TO STAFF ABOUT THE IMPLICATIONS OF CHARGING THAT COST BASED SERVICE.

THERE COULD BE A RATIONALE FOR NOT CHARGING 100% OF THAT COST RECOVERY.

AND DURING OUR CONVERSATIONS WE DISCUSSED THINGS.

AND I'LL BRING UP ONE IN PARTICULAR WHEN I GET TO THAT IN THE TABLE.

I'M GOING TO START WITH WATER METER INSTALLATIONS.

SO WHEN A NEW CONNECTION IS COMING TO THE CITY TO PUT IN A NEW CONNECTION, NEW HOUSEHOLD, NEW BUSINESS, A WATER METER NEEDS TO BE PURCHASED AND INSTALLED.

THESE FEES HAVE NOT BEEN ADJUSTED FOR QUITE A FEW YEARS.

I THINK THE LATEST MAY HAVE BEEN IN 2010, IF I'M NOT MISTAKEN.

SO THE COST OF METERS HAS GONE UP.

LIKE EVERYTHING, WE TALKED WITH WATER SERVICES STAFF ABOUT THE COST OF METERS BY SIZE, THE LABOR NEEDED TO INSTALL THESE METERS AND ANY OTHER EQUIPMENT LIKE USING A TRUCK.

SO THOSE ARE ALL THE THINGS THAT GO INTO CALCULATING THIS FEE.

THE TABLE HERE SHOWS THE CURRENT FEE PER CONNECTION, AND THEN THE PROPOSED FEE FOR A THREE QUARTER INCH METER.

THAT PROPOSED FEE IS IS $596 HIGHER THAN WHAT'S CURRENTLY CHARGED.

AND THAT IS PRIMARILY THE COST OF THE WATER METER ITSELF.

SO THAT'S THE COST OF THAT OF THAT EQUIPMENT.

AND LABOR.

SO YOU'LL SEE THAT THERE ARE CORRESPONDING INCREASES FOR THE DIFFERENT METER SIZES, ANYTHING LARGER THAN TWO INCHES.

SO A THREE INCH METER OR FOUR INCH METER SHOULD BE AT COST.

SO YOUR WATER SERVICES TEAM KNOWS HOW MUCH THOSE METERS COST TO PURCHASE AND INSTALL.

SACHSE WATER METER IN QUESTION.

IS THIS INCLUDED IN THE HOOKUP FEES THAT WE'RE DISCUSSING, OR IS THIS A SEPARATE MISCELLANEOUS CHARGE IN ADDITION TO THE HOOKUP FEE? SO, MAYOR, IF YOU'RE REFERRING TO THE CAPACITY FEES, IT'S SEPARATE.

SO THIS IS A SET THIS IS THE COST FOR THAT ACTUAL PHYSICAL CONNECTION.

THE CAPACITY FEE COVERS THE COST OF CAPACITY THAT'S BEING BUILT IN THE SYSTEM.

NEXT, WE'RE LOOKING AT SERVICE CHARGES, AND THE MAJORITY OF THESE ARE CHARGED THROUGH CUSTOMER SERVICE.

IN ADDITION TO UPDATING THESE FEES, WE'RE PROPOSING WITH THE CUSTOMER SERVICE DEPARTMENT A CHANGE IN THE THE NAME OF THE FEE.

SO THE CURRENT CODE HAS DIFFERENT NAMES FOR THESE FEES.

TURN ON TURN OFF FEES IS ONE OF THAT.

YOU'LL SEE. AND IT REALLY IS CALLED A WATER SERVICE ESTABLISHMENT FEE.

SO SETTING UP A NEW SERVICE FOR A NEW ACCOUNT AND THIS WOULD BE THE NEXT BUSINESS DAY.

CURRENTLY THE FEE IS $24.

BASED ON THE COST, WE FEEL IT SHOULD BE $45, WHICH IS $21 HIGHER.

IF A CUSTOMER REQUIRES A ESTABLISHMENT OF SERVICE THAT DAY, THAT SAME DAY, THAT PUTS ADDITIONAL PRESSURES ON STAFF.

[01:05:09]

THE COLLECTION OR NONPAYMENT CHARGE IS AN EXAMPLE OF WHERE WHEN WE CALCULATED THE FULL COST OF SERVICE, IT WAS MUCH HIGHER THAN 40 TO $45 THAT WE'RE PROPOSING TO BE CHARGED.

THE RATIONALE FOR CHARGING SOMETHING LESS THAN 100% OF FULL COST RECOVERY IS THAT OFTENTIMES THE CUSTOMER IS IS A DELINQUENT OR SHUT OFF FOR NONPAYMENT.

AND IF THAT IS BECAUSE OF A A BURDEN ON THAT CUSTOMER FOR PAYING WATER BILLS, WE DON'T WANT TO EXACERBATE THE BURDEN BY PUTTING YET ANOTHER FEE ON THEM.

SO WE WANT A FEE THAT IS THAT HAPPENS TO ME ALL THE TIME.

OKAY, SO THIS IS JUST A REASON TO COLLECT LESS THAN 100% OF WHAT THE COST.

TELL US. THAT SHOULD BE FOR A GOOD POLICY AND RATIONALE.

THE OTHER CHARGES ON THIS PAGE ARE PROPOSED TO STAY THE SAME.

IN TALKING WITH STAFF, THEY FELT THAT METER TESTING, BACKFLOW PREVENTION, ETC.

ARE AT THE RIGHT LEVEL.

THE NEXT TABLE ARE FEES THAT ARE ASSOCIATED WITH THE INDUSTRIAL PRETREATMENT PROGRAM.

SO ON THE WASTEWATER SIDE AND THIS IS A WHOLE SECTION IN YOUR CODE, AND IT HAS TO DO WITH PRETREATMENT DISCHARGES AND SCAVENGER WASTES.

SO THE INDUSTRIAL PRETREATMENT DISCHARGE FEE IS ACTUALLY A FIVE YEAR PERMIT.

AND THERE ARE ABOUT 6 OR 8 PRETREATMENT CUSTOMERS WHO HAVE TO PAY THIS PERMIT EVERY FIVE YEARS.

IT'S A STAGGERED FEE.

BUT CURRENTLY THAT FEE OVER FIVE YEARS IS $1,250.

WE FOUND IN TALKING WITH STAFF THAT THAT IS SEVERELY UNDER RECOVERING THE ACTUAL COSTS THAT ARE INCURRED TO MONITOR THE THESE INDUSTRIAL CUSTOMERS.

SO THE PROPOSED FEE IS $1,950.

THAT REPRESENTS THE COST OF ESCALATED ESCALATION FROM THE LAST TIME THE FEES WERE CHANGED, I THINK IN 2020 TO. TO TODAY.

SO A FIVE IS ACTUALLY A 5 TO 2025.

SO A FIVE YEAR ADJUSTMENT FOR INFLATION.

AND AGAIN ANOTHER REASON FOR LESS THAN 100% OF COST RECOVERY WOULD BE THAT THOSE COSTS WOULD BE QUITE HIGH.

AS YOU COULD SEE, THE JUST 1950 IS ONLY 3% OF THE 100% COST RECOVERY.

THE NEXT THREE SECTIONS ARE CALLED SCAVENGER WASTE.

SO THESE ARE SEPTIC HAULERS, YOU KNOW.

SO FROM SEPTIC TANK DISCHARGES, RESTAURANT GREASE AND MUD SUMP DISCHARGES.

THESE FEES ARE IN A PER $100 CHARGE.

AND CURRENTLY THE SCAVENGER WASTES ARE FOR SEPTIC OR $8 PER 100 GALLONS.

WE'RE PROPOSING THAT FEE BE CHANGED AND INCREASED TO $11 AS AND RESTAURANT GREASE WOULD BE THE SAME AT $11.

OFTENTIMES A TRUCK WILL BRING IN WASTE THAT IS NOT DISTINGUISHED BETWEEN RESTAURANT GREASE OR SEPTIC WASTE, SO THAT CHARGE PER 100 GALLONS WOULD BE THE SAME FOR BOTH TO AVOID UNDERCHARGING FOR ONE.

AND THEN THE MUD SUPP WASTE COST IS IS PROPOSED TO INCREASE BY $6.

THERE ARE AFTER HOURS FEES AND SCAVENGER WASTE PERMIT FEES THAT WE ARE PROPOSING HERE AS WELL.

ONE MORE PAGE ON MISCELLANEOUS FEES.

SHOULD I PAUSE OR KEEP GOING? YEAH, IF WE CAN JUST TAKE A QUICK PAUSE.

OKAY.

WE'RE GOOD TO GO.

SORRY FOR THE INTERRUPTION.

[01:10:02]

THE LAST TABLE THAT I'M GOING TO GO OVER FOR.

MISCELLANEOUS FEES ARE SEWER SURCHARGE RATES.

YOU HAVE SOME CUSTOMERS, SOME INDUSTRIAL INDUSTRIES.

WHO HAVE HIGH STRENGTH WASTEWATER DISCHARGE BASED ON THEIR CURRENT RATES AND LIMITS ON HOW MUCH THEY CAN DISCHARGE INTO THE SYSTEM.

A SURCHARGE IS ASSESSED WHEN THAT WASTE EXCEEDS THAT DISCHARGE RATE.

SO THE CURRENT FEE.

AND REMEMBER WE HAVE BOD WHICH IS BIOCHEMICAL OXYGEN DEMAND AND PTS WHICH IS TOTAL SUSPENDED SOLIDS.

THOSE ARE THE MEASURES OF STRENGTH IN A WASTEWATER.

SO IF THAT DISCHARGE IS OVER A CERTAIN LIMIT.

THERE IS AN ADDITIONAL AMOUNT OR THAT SURCHARGE IS ASSESSED TO THAT FLOW FOR THAT CUSTOMER.

BASED ON THE RESULTS OF THE COST OF SERVICE STUDY, WE FEEL THAT BOTH OF THOSE CHARGES FOR BOD AND TSS SHOULD INCREASE, AND THE INCREASE IS ROUGHLY $15.15.

EXCUSE ME PER POUND OF DISCHARGED WASTE FOR OF AN INCREASE FOR BOTH OF THOSE THAT ALIGNS THAT THAT SURCHARGE WITH THE COST OF SERVICE RESULTS.

IN YOUR CODE, YOU ACTUALLY CHARGE.

EXTRA HIGH AND REALLY HIGH STRENGTH.

SO A DOUBLING OF THE SURCHARGE AND A TRIPLING OF THE SURCHARGE FOR REALLY HIGH WASTEWATER DISCHARGE STRENGTH.

BUT THAT IS AN UNCOMMON PRACTICE IN THE INDUSTRY.

AND REALLY THE THE 500TH MILLIGRAM PER LITER VERSUS THE 300 OR THE 350 MILLIGRAM/L DOESN'T MEAN IT'S NOT REALLY THAT SIGNIFICANT THAT DIFFERENT OF A COST.

SO WE'RE PROPOSING THAT THOSE CHARGES GET ELIMINATED AND WE JUST HAVE US SIGN ONE SURCHARGE RATE FOR EACH OF THESE COMPONENTS AND CHANGE THE CODE ACCORDINGLY. DO YOU HAVE ANY OTHER QUESTIONS ON MISCELLANEOUS FEES BEFORE I MOVE ON? COUNCIL MEMBER MATTHEWS, YOU HAD A QUESTION.

IS IT ABOUT EVERYTHING OR IS IT OKAY? ANYONE ELSE HAVE A QUESTION ABOUT WHAT WE'VE DISCUSSED SO FAR? OKAY. GO AHEAD.

OKAY. THE LAST SECTION, PROBABLY THE ONE MOST FRESH IN YOUR MIND ARE THE COST OF SERVICE RATES AND RATE DESIGNS.

WE'VE SAVED THESE FOR LAST BECAUSE AGAIN, THESE ARE MONTHLY USER RATES MAKE UP THE LARGEST PROPORTION OF REVENUES FOR THE WATER, WASTEWATER AND RECLAIMED WATER FUNDS.

WHEN WE MET AT THE END OF LAST YEAR, WE TALKED TO YOU ABOUT YOUR PRIORITIES FOR RATE STRUCTURES AND RATES.

THESE WERE REVENUE STABILITY, CONSERVATION AND DEMAND MANAGEMENT, ADMINISTRATIVE BURDEN AND PROPORTIONALITY BETWEEN AND WITHIN CLASSES THAT USED TO BE CALLED EQUITY AND THEN AFFORDABILITY.

SO WE WANTED TO MAKE SURE THAT WHEN WE TALKED ABOUT RATE STRUCTURES, RATE DESIGNS FOR WATER AND WASTEWATER, WE COVERED AND ACCOUNTED FOR YOUR PRIORITIES.

WHEN WE STARTED TALKING ABOUT WATER RATES, WE PRESENTED YOU WITH THREE OPTIONS AND THEN A REVISED OPTION.

SO WE STARTED WITH OPTION ONE.

THAT ESSENTIALLY WAS THE SAME AS YOUR CURRENT RATE STRUCTURE, BUT THAT WE JUST ADJUSTED THE AMOUNT OF REVENUE THAT YOU WOULD RECOVER FROM YOUR BASE OR FIXED CHARGES, SO THAT YOU WOULD PUT MORE OF A PRICE SIGNAL ON THAT VOLUME RATE, PART OF YOUR RATE STRUCTURE.

SO THIS WOULD GIVE CUSTOMERS A LARGER PRICE SIGNAL THAT WHEN THE MORE WATER THEY USE, THE HIGHER THEIR BILL WOULD BE.

OPTION TWO TOOK THAT OPTION ONE AND BUILT UPON IT.

WE LOOKED AT CHANGING THE RESIDENTIAL TIERS, AND I WON'T GO INTO ALL OF THE DETAILS UNLESS YOU PREFER.

I DO, BUT AT THIS POINT WE MADE A SMALL ADJUSTMENT IN ORDER TO ADJUST THE RESIDENTIAL TIERED STRUCTURE.

OPTION THREE TOOK OPTION TWO WITH THE CHANGE IN RESIDENTIAL TIERS, AND THEN IT SUGGESTED A COMBINATION OF TWO CLASSES TO SIMPLIFY THE RATE STRUCTURE AND THE ADMINISTRATION OF THAT PARTICULAR RATE.

BASED ON OUR JOINT MEETING BETWEEN YOU AND THE WATER COMMISSION, A THIRD.

THE THIRD OPTION WAS REVISED TO FURTHER REFINE THAT RESIDENTIAL TIERED APPROACH.

AND THAT'S WHAT WE'LL TALK ABOUT TONIGHT.

ON THE WASTEWATER SIDE, WE HAD AGAIN THREE OPTIONS.

AND THOSE THREE OPTIONS INCREASED IN THE IN ACCOMPLISHING THOSE PRIORITIES.

[01:15:01]

THEN IN OPTION TWO WE ADDED THAT FIXED CHARGE, VERY SIMILAR TO WHAT YOU ARE CURRENTLY DOING IN WATER.

AND WE SAID, LET'S HAVE YOU RECOVER 25% OF YOUR REVENUE REQUIREMENTS THROUGH A FIXED CHARGE ON THE SEWER SIDE TO ENHANCE REVENUE STABILITY, AND THEN ALSO HAVE INDIVIDUAL VOLUME RATES FOR THE REST OF THE CUSTOMER CLASSES.

AND THEN FINALLY, OPTION THREE WAS OPTION TWO.

BUT CONSOLIDATE THOSE VOLUME CHARGES BASED ON CUSTOMER TYPE.

THAT'S WHAT WE'LL TALK ABOUT TONIGHT.

THE CHART ON THIS PAGE SHOWS THE TWO COMPONENTS OF YOUR WATER RATE STRUCTURE, WITH THE PROPOSED OPTION THREE REVISED.

I'LL WALK THROUGH THIS AND WE'RE ONLY SHOWING THE INSIDE CITY RATES HERE.

REMEMBER, OUTSIDE CITY CUSTOMERS GET A 10% SURCHARGE ON THEIR ON THE INSIDE CITY RATES.

THESE RATES ALSO EXCLUDE TAXES AND THE ENERGY RATE THE ENERGY FEE THAT IS CHARGED TO WATER CUSTOMERS.

ON THE WATER SIDE WE HAVE THE MONTHLY FIXED METER CHARGES.

THESE ARE THOSE METER CHARGES BY METER SIZE.

THE CURRENT FIXED METER CHARGES IN THIS FIRST COLUMN.

AND THEN WE'RE PROPOSING FOR 2025 THAT THE 25% OF THE COSTS FOR THE WATER FUND BE RECOVERED THROUGH A FIXED CHARGE.

CURRENTLY, YOU'RE RECOVERING ABOUT 29% OF YOUR REVENUE REQUIREMENT.

WE'RE PROPOSING TO REDUCE THAT.

THAT STILL MAINTAINS REVENUE STABILITY, BUT IT PUSHES MORE OF THE COSTS ON THE VOLUME RATES SO THAT IT PROVIDES A LARGER PRICE SIGNAL FOR WATER CONSERVATION.

THE TOTAL BILL WOULD BE FOR A CUSTOMER.

ON THE WATER SIDE WOULD BE THE FIXED METER CHARGE PLUS THE VOLUME CHARGES.

SO THE VOLUME CHARGES ARE REPRESENTED HERE ON THE RIGHT.

SINGLE FAMILY IS THE ONLY CUSTOMER CLASS THAT WE'RE PROPOSING TO HAVE A TIERED RATE STRUCTURE.

THERE ARE FOUR TIERS AND THE CURRENT TIERS ARE IN THE COLUMN HERE WITH THE ASTERISK, WE'RE PROPOSING IN 20 FISCAL YEAR 25 TO RECOVER 75% OF YOUR REVENUE REQUIREMENTS FROM THE VOLUME RATES.

AND THE RATES WOULD BE ACCORDING TO THESE TIERS AND THESE TIER RATIOS.

THE SECOND ADJUSTMENT ON THIS RATE STRUCTURE WOULD BE THAT COMMERCIALS AND SCHOOLS AND INSTITUTIONAL CUSTOMERS WOULD BE COMBINED INTO ONE CLASS AND PAYING THE SAME RATE PER 1000 GALLONS OF WATER USE.

THAT IS THE PROPOSED WATER RATE STRUCTURE.

THE WATER RATE SCHEDULE FOR THE NEXT FIVE YEARS IS PRESENTED IN THESE CHARTS.

SO THE TOP COMPONENT IS THE MONTHLY FIXED CHARGE.

SO YOU HAVE YOUR CURRENT FIXED CHARGE.

AGAIN WE'RE ONLY SHOWING INSIDE CITY RATES BECAUSE THERE ARE INSIDE AND OUTSIDE.

AND THEN WE SEE THAT THE FIRST RATE ADJUSTMENT WOULD BE EFFECTIVE SEPTEMBER 1ST OF THIS YEAR.

SO SEPTEMBER 1ST, 2024.

AND THAT WOULD RUN ALL THE WAY THROUGH DECEMBER 31ST, 2025.

SO SAME RATES FOR MORE THAN 12 MONTHS.

AND THEN THE NEXT RATE ADJUSTMENT WOULD BE EFFECTIVE JANUARY 1ST OF 2026.

AND THEN YOU SEE THE REST OF THE SCHEDULE HERE.

THE VOLUME RATES WOULD FOLLOW THE SAME SCHEDULE.

WE'VE SHOWN YOU SOME PROJECTED AVERAGE BILL IMPACTS PREVIOUSLY, BUT WE HAVE THESE ALIGNED A LITTLE DIFFERENTLY SO THAT YOU COULD SEE A REPRESENTATIVE CUSTOMER FOR EACH OF THE CUSTOMER CLASSES.

SO A REPRESENTATIVE METER SIZE ALONG WITH AN AVERAGE MONTHLY BUILD VOLUME.

GIVEN THAT WATER METER SIZE THAT CORRESPONDS TO THAT FIXED METER CHARGE, AND THE AVERAGE WATER BILL VOLUME THAT CORRESPONDS TO THE VOLUME RATE, WE CAN CALCULATE A TOTAL BILL AND COMPARE IT FROM ONE YEAR TO THE NEXT.

SO THE CURRENT YEAR FISCAL YEAR 24 AVERAGE WATER BILL.

AS AN EXAMPLE, THIS PARTICULAR SINGLE FAMILY USER WOULD PAY $30.91.

GIVEN THE NEXT ADJUSTMENT TO THE RATE STRUCTURE AND THE RATES FOR STARTING SEPTEMBER 1ST OF THIS YEAR, THAT TOTAL BILL WOULD GO UP TO $32.04, OR $1 AND 13 CHANGE IN A MONTH.

THAT'S A 3.7% CHANGE.

THE NEXT YEAR, THE RATE WOULD GO UP BY 15%.

THE POINT HERE IS THAT WHEN YOU DO A COST OF SERVICE ANALYSIS, YOU ADJUST YOUR RATES BY CUSTOMER CLASS BASED ON THOSE COSTS OF SERVICE.

[01:20:06]

PERCENTAGE RATE INCREASE TO EVERYONE.

SO YOU'LL SEE THAT IN FOR THE FIRST ADJUSTMENT, EFFECTIVE SEPTEMBER 1ST, 2024.

THE PERCENTAGE CHANGES AND THE DOLLAR CHANGES, OF COURSE, ARE DIFFERENT FOR EVERY REPRESENTATIVE CUSTOMER.

THE LARGEST IMPACTED USER WOULD BE A ONE INCH LANDSCAPE METER WITH 24,000 GALLONS OF WATER USED.

SO THAT WOULD BE THE LARGEST INCREASE.

BUT THEREAFTER EVERYONE WOULD SEE A 15% INCREASE THROUGH 2029, IN THEIR ANNUAL CHANGE IN THEIR BILLS. SO WE DO NOT HAVE A PERCENTAGE CHANGE COLUMN HERE.

WE JUST SHOW THAT AT THE TOP.

THAT'S A LOT OF DATA.

COUNCIL MEMBER MCCARTHY HAS A QUESTION.

SO A LARGE.

INDUSTRIAL OR EXCUSE ME, INSTITUTIONAL.

THAT WOULD BE LIKE NYU MAYOR AND THE UNIVERSITY.

MCCARTHY. YES. SO THEY'RE GETTING A PRETTY GOOD HIT, YOU KNOW, 37.9%.

WELL, I GUESS MY GUT REACTION IS THAT'S A LITTLE.

HI. BUT TO GET INTO IT, THEN WE HAVE TO GO BACK TO ALL THE LITTLE DETAILS THAT WE'VE BEEN TALKING ABOUT FOR THE LAST HOUR TO CHANGE THAT, BUT I DON'T KNOW, I'LL JUST PUT THAT OUT THERE FOR A CONVERSATION.

THANK YOU. I'LL KEEP GOING.

ON THE WASTEWATER RATE SIDE, I'M GOING TO SHOW YOU SIMILAR TABLES.

WE HAVE THE PROPOSED WASTEWATER RATE STRUCTURE THAT IS A PROPOSES A FIXED MONTHLY METER CHARGE AND A CONSOLIDATED VOLUME RATE SCHEDULE.

AND AGAIN, THE TOTAL BILL WOULD BE A COMPOSITE OF THAT FIXED MONTHLY CHARGE EACH MONTH, AND THE VOLUME CHARGE ACCORDING TO THE THE CLASS THAT YOU REPRESENT.

SO ON THE LEFT WE HAVE THE MONTHLY FIXED METER CHARGES BY METER SIZE.

SO THESE ARE WATER METERS.

WE HAVE THAT SAME EQUIVALENT RESIDENTIAL UNIT FACTOR THAT I MENTIONED BEFORE FOR CAPACITY FEES.

AND IN FISCAL YEAR 2025, THAT PROPOSED FIXED CHARGE WOULD RECOVER 25% OF THE ANNUAL REVENUE REQUIREMENTS FOR THE WASTEWATER FUND. ON THE VOLUME SIDE, THE COLOR CODING REPRESENTS THE CONSOLIDATED CLASSES, SO RESIDENTIAL CUSTOMERS ARE RESIDENTIAL MULTIFAMILY CUSTOMERS PAYING A 550 PER THOUSAND GALLONS.

NONRESIDENTIAL A, B, AND C REPRESENT A COMBINATION OF VOLUME AND STRENGTH OF WASTEWATER FLOW.

SO WE'VE COMBINED THESE CLASSES ACCORDING TO THEIR CONCENTRATIONS OF THEIR FLOWS AND THEIR THEIR TOTAL LOADINGS.

SO YOU'LL SEE THAT CAR WASHES, LAUNDROMATS, ETC.

THROUGH HOTELS AND MOTELS ARE COMBINED INTO NONRESIDENTIAL A NONRESIDENTIAL B INCLUDES HIGHER STRENGTH CUSTOMERS, AND THEN NONRESIDENTIAL C IS IN A CLASS BY ITSELF AT THE HIGHEST LEVEL HERE.

JUST AS IN WATER.

WE'RE PROJECTING THOSE RATES GOING FORWARD.

AND AGAIN, THIS IS THAT FIVE YEAR SCHEDULE FOR INSIGHT CITY ONLY FOR THE TOP CHART.

THESE ARE THE FIXED CHARGES THAT ARE NEW.

SO YOU DON'T HAVE ANY FIXED CHARGES CURRENTLY.

SO WE JUST START WITH THE SEPTEMBER 1ST 2024 LIST OF FIXED CHARGES.

AND THEN THE PROPOSED VOLUME CHARGES ARE CONDENSED INTO THE CONSOLIDATED CLASSES.

WE HAVE A LOT OF INFORMATION ON THIS CHART THAT YOU MIGHT WANT TO TAKE SOME TIME LOOKING AT.

IT'S THE SAME TYPE OF AVERAGE BILL IMPACTS FOR THIS RATE OPTION.

AND THESE ARE FOR AGAIN REPRESENTATIVE WASTEWATER CUSTOMERS.

SOME CUSTOMERS, YOU'LL SEE SOME CUSTOMER TYPES WILL ACTUALLY SEE A DECREASE IN THEIR MONTHLY BILLS FOR THIS FIRST YEAR.

THAT IS BECAUSE WE ARE AGAIN ALIGNING THE COSTS OF SERVICE.

FOR 2025 FISCAL YEAR 25.

[01:25:04]

SO THIS IS A IT MAY LOOK LIKE A SIGNIFICANT CHANGE, BUT IT IS BECAUSE THE LONGER YOU GO BETWEEN YOUR COST OF SERVICE RESETTING, THE BIGGER THE DIFFERENCES ARE.

HOWEVER, GOING FORWARD AFTER THIS INITIAL ADJUSTMENT, ALL CUSTOMERS SHOULD SEE THE SAME INCREASE EACH YEAR.

SO 25% INCREASE IN 2026 AND THEN 15%, 10% AND 5% THEREAFTER.

SO IT'S A BIG IMPACT IN THESE FIRST COUPLE YEARS, BUT THEN IT'S PROJECTED TO LEVEL OUT.

I'M GOING TO KEEP MOVING.

WE HAVE A FEW MORE SLIDES HERE.

THERE ARE TWO SAMPLE BILLS THAT ARE ON THE CLEAN WATER FLAGSTAFF WEBSITE.

AND WE TALKED TO YOU ABOUT THIS A FEW MONTHS AGO, BUT THIS SHOWS THE FULL MUNICIPAL SERVICES BILL FOR A RESIDENTIAL CUSTOMER USING 4550 GALLONS PER MONTH.

THIS BREAKS DOWN THE BILL INTO THE DIFFERENT COMPONENTS THAT THEY SEE.

SO A BASE WATER METER CHARGE, THE TIERED RESIDENTIAL WATER CHARGES, THE ENERGY SURCHARGE, ETC.

SO YOU'LL SEE IN YELLOW THESE ARE THE CHARGES WE WERE JUST TALKING ABOUT THE RATES FOR WATER, THE RATES FOR WASTEWATER THAT WE WERE JUST TALKING ABOUT.

THE 2024 COLUMN SHOWS WHAT THERE THIS CUSTOMER WOULD BE PAYING TODAY IN A BILL TODAY, AND THEN WHAT THAT PROPOSED BILL WOULD BE NEXT YEAR.

SO OR THE NEXT STARTING IN SEPTEMBER 2020, FISCAL YEAR 25 AND THEN FISCAL YEAR 29.

SO FAST FORWARD TO THE END OF THE RATE PROJECTION PERIOD.

WE KNOW THAT THE ENERGY SURCHARGE AND THE WATER PROTECTION FEE WILL CHANGE OVER TIME.

SO RIGHT NOW WE'RE JUST ASSUMING THEY'RE THE SAME, BUT THEY'RE ASTERISKS BECAUSE WE KNOW THAT THEY WILL THEY WILL CHANGE.

BUT I WON A BILL TODAY.

THAT'S $101.90 WOULD INCREASE TO 100, APPROXIMATELY $115.94, AND THEN UP TO $168.20 BY 2029.

WE JUST WANTED TO GIVE YOU AN IDEA OF WHAT A TYPICAL BILL MIGHT LOOK LIKE IN THE FUTURE.

OF COURSE, USE CHANGES IN USAGE AND CHANGES IN THESE OTHER FEES COULD MAKE THESE FORECASTED BILLS DIFFERENT.

WE SHOW THE SAME TYPE OF BILL FOR A COMMERCIAL USER.

THIS COMMERCIAL USER HAPPENS TO HAVE A THREE QUARTER INCH WATER METER AND OVER 51,000 GALLONS OF MONTHLY WATER USE.

SO YOU'LL SEE THEIR BILL COMPONENTS ARE VERY SIMILAR TO WHAT WE JUST SHOWED YOU FOR RESIDENTIAL.

BUT THE TOTAL IMPACT IS DIFFERENT OVER TIME.

WE HAVE ONE MORE COMPONENT TO RATES, AND THOSE ARE THE RECLAIMED WATER RATES.

WE REVIEWED THESE MOST RECENTLY OF A COUPLE OF WEEKS AGO.

SO WE'RE JUST SHOWING THAT THE RECLAIMED WATER RATES FOR NOW ARE PROPOSED TO BE OR PROJECTED TO BE IN LINE WITH THE WATER.

THE POTABLE WATER RATES FOR OPTION THREE REVISED.

THOSE WERE THE RATES THAT I SHOWED YOU JUST A FEW MINUTES AGO.

SO THE RECLAIMED WATER RATES.

ON THE MONTHLY FIXED CHARGE SIDE ARE THE SAME AS POTABLE WATER, SO IF YOU HAVE A THREE QUARTER INCH RECLAIMED WATER METER, YOU PAY THE SAME MONTHLY FIXED CHARGE.

ON THE VOLUME SIDE.

HOWEVER, THE RECLAIMED WATER RATES ARE A FUNCTION OF THE POTABLE WATER RATE, THE VOLUME RATE PLUS THE ENERGY RATE.

SO IF YOU TRY TO TAKE YOUR CALCULATOR AND CALCULATE THAT PERCENTAGE OF THE POTABLE WATER RATE, WE TALKED ABOUT THIS BEFORE, YOU HAVE TO ADD IN THE POTABLE WATER RATE PLUS THE ENERGY RATE IN ORDER TO GET THAT BASIS FOR THE RECLAIMED WATER RATE.

THAT WAS A LOT OF MATERIAL.

WE COVERED THE FINANCIAL PLANS.

WE COVERED CAPACITY FEES, MISCELLANEOUS FEES, AND MONTHLY USER CHARGES OR USER RATES.

ALL OF THESE FEES WORK TOGETHER TO HELP SUPPORT AND FUND AND KEEP YOUR WATER SERVICES GOING.

WATER, RECLAIMED WATER AND WASTEWATER.

IT'S A LOT OF INFORMATION AND I KNOW YOU'LL HAVE SOME QUESTIONS, SO I DON'T KNOW IF YOU WANT ME TO PAUSE FOR QUESTIONS BEFORE WE TALK ABOUT OUR REQUESTED ACTION FOR YOU TONIGHT.

COUNCIL MEMBER MATTHEWS.

YOU WERE THE ONE WITH THE FIRST QUESTION.

WOULD YOU LIKE TO ASK IT NOW?

[01:30:01]

I KNOW TONIGHT ON THE AGENDA, WE'RE JUST MAKING A DECISION ON WHETHER TO GO THROUGH THE LEGAL PROCESS OF POSTING THAT WE'RE GOING TO CONSIDER WATER RATES.

I HAVE A LOT OF QUESTIONS THAT YOU SEE.

MY DINING ROOM TABLE.

I HAVE THE 77 PAGES OF DETAILED INFORMATION SPREAD OUT.

THERE'S A LOT OF THINGS THAT DON'T RECONCILE WITH ME.

POPULATION GROWTH.

WE HAD A LOT OF DISCUSSION ON THAT, FROM THE HOSPITAL'S PLANS TO PRESENTATION FROM ECONA AND STUFF.

AND NOW NONE OF THEM COME CLOSE TO THE POPULATION GROWTH THAT WE'RE PROJECTING HERE.

AND ALSO, IF THOSE PROJECTED GROWTH RATES ARE IN INCORRECT, THAT IMPACTS OUR GROWTH RELATED CIP.

SO I REALLY WANT TO FEEL WARM AND FUZZY ABOUT IT.

ALSO CAPACITY FEES, IF I UNDERSTAND IT, ARE ASSOCIATED WITH PAYING FOR THAT GROWTH IN USAGE OF OUR WATER AND STUFF. I SEE SOME BIG NUMBERS HERE.

SO. I WOULD KIND OF.

NOT KIND OF I REALLY, I MEAN.

I SPENT 40 YEARS ANALYZING PRESENTATIONS AND SPREADSHEETS AND FINANCIALS, AND MY HEAD HURTS.

AND IT'S HARD TO DO IT UP HERE.

LISTENING TO THE PRESENTATION, YOU'VE DONE A FABULOUS JOB OF JUST TRYING TO BREAK IT OUT INTO, YOU KNOW, SEGMENTS SO WE CAN TRY TO DIGEST IT.

I KNOW AARON'S WORKED ON IT HARD AS WELL, AND I APPRECIATE THAT.

I JUST. I DON'T THINK RIGHT NOW I CAN HAVE A DISCUSSION WITH OUR COMMUNITY AND SAY WITH CONFIDENCE THAT I'M CONFIDENT ABOUT.

I AM CONFIDENT THAT WE NEED THESE PROJECTS.

I AM CONFIDENT THAT WE KICKED A LOT OF THESE PROJECTS DOWN THE ROAD FOR YEARS.

I CAN SAY THAT, BUT YOU KNOW, THIS IS THIS IS AN AMAZING NO GROWTH STRATEGY.

I MEAN, WE ARE ALREADY VERY EXPENSIVE TO LIVE HERE.

AND I, WHEN THE COMMUNITY STARTS HEARING, STARTS BEING ABLE TO USE MODELING SCENARIOS, WHICH YOU ALL TOLD ME YOU GUYS WOULD HAVE UP AND RUNNING SOON.

I THINK THEY WILL MAYBE ALL BE WRONG.

AND THEY'LL BE, OH YEAH, I CAN AFFORD, YOU KNOW, AN EXTRA MILLION DOLLARS A YEAR IF THEY'RE, YOU KNOW, NOW OR SOMEBODY ELSE.

I DON'T THINK SO. I THINK THEY'LL BE AS WORRIED ABOUT IT AS I AM.

AND SO I REALLY WOULD LIKE SOMEHOW TO HAVE JUST A WORK SESSION WHERE WE'RE NOT JUST YOU'RE DOING A PRESENTATION, OTHER PRESENTERS ARE WAITING TO DO THEIR THING. YOU KNOW, I WANT TO I WANT TO ASK AND AND HAVE NUMBERS.

LIKE, WHAT IF WE, YOU KNOW, MOVED IT OUT A SEVEN YEAR OR TEN YEAR PLAN? WHAT IF WE TOOK OUT PROJECTS LIKE RED GAP RANCH? WHAT IF WE, YOU KNOW, PROJECTS THAT AREN'T EVEN ON THE BOOKS FOR TEN MORE YEARS? AND WHAT IF, WHAT IF, WHAT IF, WHAT DOES THAT LOOK LIKE AND HAVE A MORE RELAXED PUBLIC MEETING TO HAVE THOSE CONVERSATIONS SO THAT WE CAN ALL YOU KNOW, FEEL BETTER ABOUT THE PAIN OF THESE INCREASED RATES AND KNOW THAT WE EXHAUSTED ALL QUESTIONS AND CONVERSATIONS SO WE CAN FEEL CONFIDENT WHEN WE'RE TALKING TO OUR COMMUNITY ABOUT THE PROCESS.

YOU KNOW, IT'S HARD TO STAY NOT GLAZED OVER.

MAYBE IT'S JUST ME, BUT IF WE COULD DO THAT, AND I KNOW TIME IS RUNNING OUT, WE'RE GOING.

YOU KNOW, WE'RE. IF WE MOVE THIS TODAY TO POST THE RATE CHANGE WE'VE GOT, YOU KNOW, A VERY SHORT AMOUNT OF TIME TO REALLY GO THROUGH EVERYTHING AND ASK THE QUESTIONS AND FIND OUT THE ANSWERS AND RUN SOME SCENARIOS.

AND SO I THINK IT'S GOING TO TAKE MORE THAN JUST AN HOUR TO PRESENTATION ON THE DAIS WHERE WE COULD JUST DEDICATE, I DON'T KNOW WHAT THAT LOOKS LIKE IF THAT'S ACCEPTABLE WITH THE CITY MANAGER OR NOT, BUT I JUST I DON'T KNOW HOW TO GET MY HEAD AROUND THIS, AND I'VE GOT IT ALL SPREAD OUT IN MY.

I GOT A LIST OF QUESTIONS ALREADY, BUT YOU KNOW, TO HAVE THOSE BACK AND FORTH AND HAVE THOSE ANSWERED AND GO, OKAY, WHAT ABOUT THIS? AND THAT'S JUST WHAT I'D LIKE TO ASK.

SO MAYOR AND COUNCIL MEMBER MATTHEWS I THINK THAT'S A GREAT IDEA FROM WHAT I UNDERSTAND.

AND I WOULD DEFER TO DIRECTOR JONES.

DID I BELIEVE WE DO HAVE SOME TIME AND THAT TONIGHT, IF YOU APPROVE THE THE NOTICE OF INTENTION TO CHANGE RATES, THEN IT PERHAPS WE COULD SET UP SOME OF THOSE WORK SESSIONS THAT WHERE WE COULD DIG INTO THOSE WHAT IFS.

[01:35:05]

WHAT? BECAUSE I KNOW THAT OUR AGENDAS FOR THE NEXT COUPLE OF MEETINGS ARE REALLY PACKED.

WHAT IS THE WHAT'S THE PROCESS? IF WE WERE TO HAVE A WORK SESSION ON A DIFFERENT DAY AND THIS WAS THE ONLY TOPIC? I THINK IT'S SOMETHING THAT'S VERY DOABLE.

MAIER I, YOU KNOW, I THINK IT'S A GOOD IDEA TO TRY TO SEPARATE THIS CONVERSATION OUT FROM A REGULAR MEETING THAT'S FULL OF OTHER THINGS THAT DEFINITELY NEED TO BE WITH, YOU KNOW, ACTION TAKEN ON IT.

SO IT WOULD JUST BE A MATTER OF FINDING A DATE THAT WORKS FOR THE COUNCIL, THAT WORKS FOR STAFF AND OUR CONSULTANTS.

BUT IT'S A DOABLE OPTION FOR SURE.

STERLING MAYOR FROM A LEGAL PERSPECTIVE.

ANY NUMBER OF WORK SESSIONS IS PERMISSIBLE PRIOR TO THAT JUNE 18TH PUBLIC HEARING DATE.

TO MAKE SURE THE COUNCIL IS COMFORTABLE WITH WHAT'S BEING PRESENTED ON THAT DATE AND THE PUBLIC IS AWARE.

SO THANK YOU.

AND WE DON'T NEED A QUORUM, RIGHT.

IF WE'RE JUST GOING TO BE ASKING QUESTIONS AND THERE'S NO DECISION MAKING OR DO WE STILL NEED A QUORUM? FOR A WORK SESSION? YES.

YEAH. WAS STERLING SQUIRMING AS MUCH AS I WAS.

YES. YOU WOULD NEED AN AGENDA.

MINUTES FULL.

QUORUM OF COUNCIL.

IT WOULD BE AN ACTUAL MEETING.

OKAY. SHANNON.

YEAH. I MEAN, MAYBE JUST TO TAKE THAT CONVERSATION A BIT FURTHER, IF YOU WERE LOOKING FOR SOMETHING LIKE A TOWN HALL SIMILAR TO WHAT WE DID AT THE EAST FLAGSTAFF LIBRARY, WHERE FOLKS CAN COME AND ASK QUESTIONS, WE CAN WALK THEM THROUGH THE CALCULATOR, AND COUNCIL WOULD PARTICIPATE IN THAT.

I THINK THAT THAT'S ONE FORMAT VERSUS HAVING AN OFFICIAL WORK SESSION.

SO DEPENDING ON WHICH ONE WORKS BEST FOR YOU, I THINK WE CAN ACCOMMODATE BOTH.

I WAS ALSO GOING TO RECOMMEND COUNCIL MEMBER MATTHEWS.

I THINK IT'S VERY HELPFUL.

IF WE CAN SIT DOWN WITH COUNCIL MEMBERS, LOOK AT THE SAME PAPERS THAT YOU'RE LOOKING AT, TRACK WHAT YOUR QUESTIONS ARE HELP TO PROVIDE THAT CLARITY.

IT ALSO ALLOWS US TO MAP THOSE QUESTIONS OVER INTO THE INFORMATION THAT WE'RE PRESENTING AND PULLING TOGETHER FOR COMMUNITY EDUCATION.

BECAUSE IF YOU HAVE THE QUESTION, THE LIKELIHOOD IS, IS SOMEBODY ELSE MIGHT HAVE THAT SAME QUESTION.

SO BEING ABLE TO PROVIDE CLARITY TO YOU AS A COUNCIL MEMBER SO THAT YOU CAN HELP OTHERS UNDERSTAND THAT YOU'RE TALKING WITH.

AND THEN FOR US TO BE ABLE TO REPLICATE THE SAME, I THINK, IS VERY HELPFUL IN THIS PROCESS.

THAT'S WHY I'VE BEEN MAKING A LIST.

I DIDN'T WANT TO SET UP A MEETING UNTIL I DIGESTED THE INFORMATION THAT WAS EMAILED TO ME LAST WEEK.

SO YEAH THAT WOULD BE GREAT AS WELL.

IN ADDITION, BECAUSE I KNOW THAT AS OUR COMMUNITY MEMBERS ARE KIND OF WAKING UP TO LIKE, OH, WAIT, WHAT DO YOU YOU KNOW, WHAT ARE YOU SAYING? THIS RATE AND STUFF, HOW DOES THAT IMPACT ME? I THINK THEY'RE GOING TO HAVE A LOT MORE QUESTIONS, AND I WANT TO MAKE SURE WE'RE AS TRANSPARENT AS POSSIBLE AND THAT WE PROVIDED.

AND I KNOW STAFF HAS DONE A GREAT JOB OF YOU KNOW, THERE'S I SEE IT EVERY DAY, YOU KNOW, LEARN MORE ABOUT THE WATER RATE STUDY AND STUFF.

BUT YOU KNOW, PEOPLE GET BUSY AND IT JUST GOES OVER THEIR HEADS.

AND I THINK THEY'RE GOING TO WAKE UP WITH STICKER SHOCK IF WE DON'T REALLY DIG INTO THIS AND GET OUR QUESTIONS ANSWERED AND HAVE A FORUM WHERE, YOU KNOW, OUR COMMUNITY CAN ASK QUESTIONS TO IN AN OFFICIAL CAPACITY.

YEAH. AND ALL THE ADVERTISING AND THE OUTREACH THAT WE'VE BEEN TALKING TO YOU AND SHOW YOU EXAMPLES THAT RAMPS UP THIS WEEK.

SO WE'RE REALLY ENCOURAGING FOLKS TO TRY IT OUT AND GIVE US THEIR FEEDBACK, ASK US THE QUESTIONS, BECAUSE THAT'S HOW WE MAKE SURE THAT FOLKS ARE INFORMED AND COMFORTABLE WITH WHAT WE'RE DOING MOVING FORWARD.

IS THE CALCULATOR AVAILABLE NOW? IT IS.

THAT ENCOMPASSES ALL THE DIFFERENT RATE WATER RECLAIMED AND WASTEWATER INTO ONE BILL.

IT HAS THE WATER AND THE WASTEWATER.

IT DOES NOT HAVE THE RECLAIMED PIECE OF IT.

THANK YOU. COUNCIL MEMBER HARRIS.

THANK YOU. MAYOR.

I THINK WHAT I HEARD COUNCIL MEMBER MATTHEWS SAY AND CORRECT ME IF I'M WRONG.

COUNCIL MEMBER MATTHEWS, YOU WERE TALKING OR SPEAKING ABOUT SCENARIOS.

WHAT IF WE TOOK OUT THIS? WHAT WOULD THIS LOOK LIKE? WHAT IF WE TOOK OUT THIS? I DON'T THINK SHE WAS ASKING FOR.

DIFFERENT RATES. I THINK SHE WAS ASKING ABOUT SCENARIOS HOW WE COULD MAKE THIS LESS EXPENSIVE.

IS THAT RIGHT? YES.

JUST TO CLARIFY DIFFERENT SCENARIOS, NOT ONLY JUST TAKING BECAUSE I KNOW EVERYTHING HAS BEEN COMMUNICATED TO US IS IMPORTANT.

ALTHOUGH THERE'S THAT BIG CHUNK OF UNFUNDED UNRECOGNIZED PROJECTS, IT'S LIKE, WHAT IS THAT?

[01:40:01]

I KNOW WE'RE RUNNING OUT OF MONEY, SO THAT'S PROBABLY THE ANSWER.

BUT JUST HAVING THOSE QUESTIONS ASKED AND ANSWERED AND RUNNING THOSE SCENARIOS LIKE COUNCIL MEMBER HARRIS SAID TO SAY, WHAT IF WE TAKE THIS OUT? WHAT DOES THAT LOOK LIKE? COUNCIL MEMBER HOUSE.

THANK YOU, MAYOR. JUST ALONG THOSE SAME LINES, IN TERMS OF THE DIFFERENT SCENARIOS, I THINK ONE OF THE BIG CONCERNS THAT I'M FEELING IN LOOKING AT THESE RATES, ESPECIALLY AS IT'S COMING TOGETHER, IS NOT ONLY THE IMPACT TO LIKE THE INSTITUTIONS THAT WE WE CLEARLY SAW HERE, BUT ALSO AS WE WERE TALKING ABOUT EVEN SOMETHING LIKE THE THE WATER HOOKUPS AND SOME OF THOSE COSTS. I'M THINKING IMMEDIATELY OF AFFORDABILITY ACROSS THE BOARD.

WHAT THAT, THAT SORT OF CHANGE DOES TO HOUSING AFFORDABILITY.

WHAT THE IMPACT MAY BE FOR OUR DIFFERENT INSTITUTIONS THAT ARE PROVIDING SERVICES, WHETHER IT'S EDUCATIONAL SERVICES OR OTHERWISE.

THE POTENTIAL IMPACTS FOR THE AFFORDABILITY OF THINGS LIKE THE UNIVERSITY OR OTHER SERVICES.

AND SO I'M WONDERING HOW MUCH PLANS LIKE THIS AND THIS SORT OF STUDY TAKES THOSE SORT OF IMPACTS INTO ACCOUNT.

IF THERE'S IF THERE'S WAYS FOR A STUDY LIKE THIS TO DO THAT OR IF THAT'S MORE OF THE CONVERSATION THAT WE'RE HOPING TO HAVE COMING UP IS LOOKING AT THOSE THOSE POTENTIAL IMPLICATIONS.

SPECIFIC TO SOME OF THOSE ORGANIZATIONS OR SOME OF THAT WORK AND AND BUILDING OUT SOME OF THOSE POTENTIAL SCENARIOS OF IMPACT.

THANK YOU, MAYOR AND COUNCIL MEMBER HOUSE.

WHEN WE'RE DOING THESE COST OF SERVICE ANALYZES, ESPECIALLY IF THEY HAVEN'T BEEN ADDRESSED IN QUITE A WHILE, WE OFTEN SEE THESE LARGE IMPACTS.

YOU KNOW, IF YOU'RE LOOKING AT SOME OF THE OTHER ARIZONA COMMUNITIES THAT WE'VE WORKED WITH, LIKE THE TOWN OF OR SURPRISE, CITY OF SURPRISE IS LOOKING AT 50% RATE INCREASES. THESE THESE ADJUSTMENTS ARE SHOCKING.

AND SOMETIMES IT IS A MATTER OF OTHER POLICIES THAT NEED TO BE CONSIDERED IN ORDER TO ADDRESS THOSE ISSUES.

SO IS THERE AN AFFORDABLE HOUSING POLICY THAT PERHAPS YOU WAIVE A CERTAIN CAPACITY FEE? YOU KNOW, GRANTED, WHENEVER YOU ARE PROVIDING THAT KIND OF A BENEFIT, IT'S GOT TO COME FROM SOMEWHERE, RIGHT? YOU HAVE TO WHEN YOU PUSH IN THE BALLOON ON ONE SIDE, IT POPS OUT ON THE OTHER, BECAUSE WATER SERVICES STILL NEEDS THOSE FUNDS TO OPERATE AND TO TO BUILD ITS PROGRAM. SO I WOULD SAY THAT WE CAN RUN SCENARIOS, BUT I THINK WE HAVE TO BE ALSO CONSIDERING SOME OTHER POLICIES THAT MIGHT NEED TO BE REVIEWED WHEN IT COMES TO AFFORDABILITY OF SERVICE.

AND I KNOW WE'VE TALKED IN THE PAST ABOUT OTHER SOCIAL SERVICE AGENCIES PROVIDING SOME ASSISTANCE TO CUSTOMERS THAT HAVE TROUBLE OR BURDENS, YOU KNOW, ON THEIR JUST COST OF HOUSING AND COST OF PAYING WATER AND SEWER BILLS.

SO IF THAT WOULD, IF THAT WOULD HELP.

WITH WHAT YOU'RE WHAT YOU'RE CONCERNED ABOUT.

AND I WOULD SAY WE COULD ADD THAT TO OUR DISCUSSION.

YEAH, VERY MUCH SO.

I THINK IT'S A REALLY ESSENTIAL PART OF THE CONVERSATION FOR ME, BECAUSE AS WE'RE LOOKING AT THIS, AND PARTICULARLY AS WE'RE LOOKING AT THESE RATES AND THESE CHANGES AS WAYS OF NOT ONLY ENSURING THE STABILITY OF OUR WATER AND MEETING THOSE COMMUNITY NEEDS, BUT ALSO LOOKING AT IT IN TERMS OF SMART GROWTH AS A CITY.

THAT'S ANOTHER ASPECT OF IT IN MY MIND, IS HOW IT'S IMPACTING THE OTHER SERVICES THAT WE'RE ABLE TO PROVIDE, HOW IT'S IMPACTING THE COST OF HOUSING OVERALL, AND ALL OF THOSE SORTS OF THINGS THAT IF WE'RE MAKING CHANGES IN ONE AREA, RECOGNIZING THE IMPACT THAT IT HAS IN OTHERS AND HOW WE MIGHT INADVERTENTLY BE HINDERING SOME OF THOSE GOALS IF WE DON'T TAKE THEM INTO CONSIDERATION.

SO I'D VERY MUCH LIKE TO SEE IT BE PART OF THAT NEXT CONVERSATION.

AS WE START BUILDING OUT SOME OF THOSE SCENARIOS AND LOOKING AT WHAT THOSE POSSIBILITIES ARE FOR MANAGING THESE IMPACTS.

[01:45:01]

I JUST HAD A COUPLE OF THOUGHTS TO OFFER UP.

I DID MEET WITH SHANNON, SHANNON AND AARON, AND I ASKED A LOT OF THE QUESTIONS THAT WERE KIND OF GOING THROUGH TONIGHT, AND I FOUND IT VERY, VERY HELPFUL.

BUT IT DID, YOU KNOW, LEAD TO MORE QUESTIONS.

SO. I THINK WITH THIS AGGRESSIVE PLAN, YOU KNOW, WE DO NEED TO DO THIS.

I UNDERSTAND THAT, BUT FOR OUR COMMUNITY, I DO THINK WE SHOULD HAVE ANOTHER MEETING WHERE THIS IS WHAT WE'RE TALKING ABOUT.

AND I'M WONDERING IF WE CAN FRAME OUR QUESTIONS AND GET THEM TO STAFF AND TO YOU, CAROL, BEFOREHAND SO THAT YOU CAN COME UP WITH THIS SCENARIOS.

IT'S IMPOSSIBLE FOR ME TO ASK AT THE MEETING.

TO MAP THAT OUT.

IT WOULD, YOU KNOW, I THINK IT WOULD BE GOOD IF WE HAD THAT TO YOU OUT OF TIME SO THAT WE CAN KIND OF FRAME OUT WHAT THAT MEETING CAN LOOK LIKE.

AND I DON'T KNOW IF THAT'S POSSIBLE, BUT I DO THINK HAVING ANOTHER WORK SESSION SEPARATE WOULD BE A GREAT IDEA.

THANK YOU. COUNCIL MEMBER HARRIS.

I, I THINK WHAT WE'RE TALKING ABOUT AND, I DON'T KNOW, IT SEEMS LIKE YOU HAVE A LOT OF EXPERTISE.

LIKE A LOT.

I'M NOT SURE IF WE'RE AT THE THAT.

WELL, HOW DO I TAKE THIS IN THE SPIRIT THAT IT'S GIVEN? SO IF SOMEONE IS ASKING YOU WHAT ABOUT THIS SCENARIO? AND IT MAY NOT COME FROM US, IT MAY COME FROM SOMEONE THAT'S AT THAT MEETING.

WOULD YOU BE ABLE TO DO THAT THERE AND GIVE THEM THAT ANSWER? OR WOULD YOU HAVE TO SAY, LET ME GET BACK TO YOU? AND THE ONLY REASON THAT I'M ASKING YOU THAT IS THAT IF WE REALLY WANT TO BE TRULY TRANSPARENT, THEN WE HAVE TO BE ABLE TO LET FOLKS COME IN AND AND ASK THOSE QUESTIONS AND NOT US, YOU KNOW DIRECT THE CONVERSATION BECAUSE IT REALLY IS ABOUT THEM, NOT THE SEVEN OF US.

SO THEY HAVE TO BE ABLE TO ASK THOSE WHAT IFS, AND THEN WE HAVE TO BE ABLE TO ANSWER THEM.

NOW, I CAN SIT DOWN WITH EVERYONE AND GET A GOOD UNDERSTANDING OF WHAT THIS IS ALL ABOUT, BUT THAT DOESN'T REACH THE OTHER 20 OR 30,000 PEOPLE OR WHOEVER.

HOW MANY EVER IS GOING TO POTENTIALLY DO THIS? SO IF WE COULD DO SOMETHING LIKE THAT AND THEN WE COULD FILM IT, VIDEO IT LIKE WE DO OUR MEETINGS, AND THEN PEOPLE COULD GO BACK LATER AND WATCH AND PERHAPS SOME OF THEIR QUESTIONS THAT SOMEONE ELSE ASKED.

WOULD HAVE BEEN ANSWERED.

ALL I'M TRYING TO DO IS JUST GET US TO A POINT WHERE WE CAN DO THIS IN THE MOST EFFICIENT WAY, BECAUSE THE BOTTOM LINE IS THAT WE'VE GOT A TIME CRUNCH.

AND SO WHATEVER IT IS THAT THAT WE DO, WE GOTTA DO IT PRETTY QUICKLY.

BECAUSE AND THEN WE HAVE TO BE WILLING TO WHATEVER HAPPENS, WE'RE GOING TO HAVE TO BE WILLING TO BITE THE BULLET, WHATEVER WAY THAT IS.

I DON'T KNOW WHAT IT'S GOING TO COME OUT OF THAT.

SO PROBABLY NOT A GOOD ANALOGY, BUT SO THANK YOU.

SO WHAT I'M HEARING YOU SAY, COUNCIL MEMBER HARRIS, IS THAT SHANNON HAD HAD SAID THAT WE COULD EITHER HAVE A WORK SESSION OR WE CAN COULD COMBINE IT WITH THE PUBLIC MEETING THAT STAFF ALREADY HAS PLANNED.

AND I'M HEARING YOU SAY THAT THEY REALLY SHOULD BE SEPARATE.

BECAUSE THAT SHOULD BE JUST THE COMMUNITY ASKING QUESTIONS.

BUT THEN I THINK WE ALL WOULD LIKE TO HAVE A WORK SESSION WHERE WE CAN DIG INTO THESE QUESTIONS AS WELL.

AND. THERE WERE TWO POINTS MADE ABOUT QUESTIONS AHEAD OF TIME.

WOULD THAT BE HELPFUL TO YOU IN PREPARING? OR CAN YOU.

GO WITH QUESTIONS PRESENTED TO YOU.

AT THE AT THE WORK SESSION.

SO MAYOR AND ALL COUNCIL MEMBERS I, WE WE HAVE A MODEL THAT IS MEANT TO RUN SCENARIOS ON THE FLY.

HOWEVER, I WOULD APPRECIATE SCENARIOS DEVELOPED AHEAD OF TIME THAT WOULD BE VERY HELPFUL.

BUT IN ANSWER TO COUNCIL MEMBER HARRIS'S QUESTION ABOUT WOULD I BE ABLE TO RUN SOMETHING THAT SOMEONE COMES UP WITH, I WOULD LIKE TO BELIEVE, YES.

THERE'S ALWAYS SOMETHING THAT YOU KNOW, WE CAN'T DO, BUT, YOU KNOW, IF IT IS WITHIN THE PARAMETERS OF, YOU KNOW, COSTS, YOU KNOW, TIMING, DIFFERENT LEVERS THAT WE'VE INCLUDED IN OUR MODELING, THEN THAT'S WHAT WE LOVE TO DO.

THAT'S WHAT YOU'RE ABLE TO DO.

SO IF WE COULD HAVE A COMBINATION OR COMBINATION, IF WE COULD HAVE PREPARED SCENARIOS, THAT WOULD BE FANTASTIC.

AND IF SOMETHING ELSE COMES UP AT THAT TIME.

[01:50:02]

SO I'LL HAVE TO THINK ABOUT HOW TO KEEP IT SO THAT I DON'T MAKE YOUR EYES GLAZE OVER EVEN MORE.

BUT I WOULD LIKE TO BELIEVE THAT WE COULD ACCOMPLISH THIS IN A SEPARATE WORK SESSION.

COUNCIL MEMBER MCCARTHY.

THANK YOU, MAYOR.

I THINK A LOT OF THIS DISCUSSION IS BASICALLY SITTING ON THE FOUNDATION OF STICKER SHOCK.

IT'S LIKE, OH MY GOD, HOW MUCH ARE YOU GOING TO RAISE MY RATES? SO IF SOMEBODY DOESN'T LIKE THAT.

THERE'S ONLY TWO WAYS TO CHANGE THAT.

PUT THE BURDEN ONTO SOMEONE ELSE OR SOMETHING ELSE, OR DETERMINE THAT WE DON'T NEED TO DO SOME OF THE PROJECTS.

SO IT'S ONE THING TO SAY, I HATE THIS.

IT SHOULD BE LESS. BUT THAT CONVERSATION, THAT'S ONLY HALF THE CONVERSATION.

IT'S LIKE, OKAY, YOU DON'T LIKE IT.

WHERE DO YOU WANT? WHERE DO YOU WHERE DO YOU WANT IT? I LIKE YOUR ANALOGY.

IF YOU PUSH ON THE BALLOON AND IT GOES IN HERE, BUT THEN IT PUSHES OUT ON THE OTHER SIDE.

THAT'S EXACTLY WHAT WE'RE UP AGAINST.

WE SPENT A LOT OF TIME SETTING PRIORITIES OF, YOU KNOW, DO WE WANT TO? CHARGE MORE ON THE BASE RATE, OR SHOULD WE CHARGE MORE ON THE PER GALLON RATE? AND YOU KNOW, YOU CAN CHANGE THAT BACK, BUT IT'S IT'S A ZERO SUM GAME UNLESS WE CAN CUT PROJECTS OUT.

AND I DON'T THINK THAT'S REALLY ON THE TABLE.

IF IT IS, LET ME KNOW.

BUT I'M THINKING IT PROBABLY IS NOT.

OH. SHANNON'S COMING UP.

THANKS. NO, I'M MAYOR COUNCIL MEMBERS.

NO, I APPRECIATE I'M COUNCIL MEMBER MCCARTHY.

I THINK EVEN WHERE YOU'RE GOING, I THINK YOU'RE TOUCHING ON SOME GOOD POINTS THAT MAY BE A LITTLE BIT OVERLOOKED.

AS WE KIND OF GET INTO THE WEEDS, WE GET DISTRACTED.

BUT ON THE WATER, ON THE WATER SIDE, I THINK A POINT TO BE EMPHASIZED IS THERE'S A DRAMATIC CHANGE THAT COUNCIL GAVE DIRECTION IN THE MODEL FOR THE WATER RATE STRUCTURE. CURRENTLY WE WERE WE'RE COLLECTING 29% OF OUR REVENUES TO THE BASE RATE, AND YOU LOWERED THAT TO 25%, WHICH PUTS POWER BACK INTO THE CUSTOMERS HANDS.

WE PUT LESS EMPHASIS ON THE BASE AND SAID, ULTIMATELY, BECAUSE CONSERVATION IS A CORE VALUE, THE MORE YOU CAN SERVE, YOU HAVE CONTROL OVER WHAT YOUR FINAL BILL COMES IN.

STICKER SHOCK WHEN YOU LOOK AT THE NUMBERS.

THERE'S MAN, THERE'S SO MANY SCENARIOS AND WE AVERAGE THEM.

WE TAKE MEDIANS, WE TAKE MODES TO LOOK AT THAT.

WHAT IT'S NOT PROJECTING IS WHEN YOU LOOK AT THE STICKER SHOCK, I WOULD SAY THE ONES THAT ARE HAVING A STICKER SHOCK ARE THE ONES THAT ARE USING LARGE VOLUMES OF WATER.

GRANTED, RIGHT? THAT IS A STICKER SHOCK.

BUT ANOTHER WAY TO LOOK AT THAT WOULD BE IS THAT'S ALSO A CUSTOMER THAT HAS A LOT OF CONTROL OVER THE DESTINY OF WHAT THEIR WATER BILL DOES LOOK LIKE.

I JUST DON'T THINK THAT SHOULD BE GLAZED OVER.

I THINK THAT'S AN IMPORTANT CONCEPT, AND I FEEL IT'S IT'S INTEGRAL TO THE WAY THE MODEL WAS BUILT, BECAUSE THAT IS A CORE VALUE RIGHT OF OUR COMMUNITY.

IS THAT CONSERVATION? THAT'S WHY THE BASE RATES WERE ADJUSTED LOWER TO GIVE MORE POWER BACK.

AND THAT'S WHY COST PER THOUSAND ESCALATING UP IN THAT USE COMES AT A PREMIUM.

THE STICKER SHOCK.

I GET THAT UNDERSTANDING THE CAUSE AND EFFECT OF THAT IS, AGAIN, WHEN YOU'RE USING AGAIN, WE WHEN YOU LOOK AT AN INDIVIDUAL USING 4000 GALLONS A MONTH, I DON'T THINK YOU'RE I DON'T FEEL LIKE WE'RE SEEING THE STICKER SHOCK THERE.

YOU'RE USING 4 MILLION GALLONS A MONTH, THERE PROBABLY IS A STICKER SHOCK.

AND SO I THINK KEEPING THAT IN CONTEXT OF WHAT DOES THAT LOOK LIKE? WHAT DOES THE CUSTOMER HAVE POWER OVER? AND THEN WHAT DOES WATER SERVICES IN THE CITIES TEAM PROVIDE AS FAR AS RESOURCES THAT CAN ADDITIONALLY HELP YOU BE SUCCESSFUL MOVING FORWARD? I ALSO APPRECIATED WHAT YOU SAID ABOUT YEAH.

THE LIST OF PROJECTS LIKE. RIGHT.

AND WE CAN START THERE AS OPPOSED TO, WELL, TELL ME WHAT YOU CAN DO IN TEN YEARS, MAINLY BECAUSE I ALSO HAVE STICKER SHOCK OF A PROJECT THAT WE'RE GOING TO BE BRINGING BEFORE YOU FOR APPROVAL THAT STARTED OVER TEN YEARS AGO.

OVER TEN YEARS AGO, THAT PROJECT WAS $3.5 MILLION.

AND WE DIDN'T DO IT BECAUSE THAT WAS TOO EXPENSIVE.

AND EVERY THREE YEARS THAT PROJECT HAS DOUBLED IN COST.

NOW I'M GOING TO BE COMING BEFORE YOU WITH THE PROJECT IS NO LONGER $3 MILLION, RIGHT? IT'S SOMEWHERE BETWEEN THE MAGNITUDE OF 8 TO 12 MILLION.

AND ME SAYING, MAN, I WISH I WOULD HAVE DONE THAT TEN YEARS AGO, RIGHT? THAT WAS CHEAP. SO WHEN YOU DRAW OUT A PROJECT I CANNOT PREDICT INTO THE FUTURE, BUT I CAN LOOK AT THE LAST TEN YEARS AND SEE AND SEE ESCALATIONS THAT AGAIN EVERY THREE YEARS. I FEEL LIKE THAT PROJECT IS DOUBLING IN COST.

AND IF I DON'T DO THAT PROJECT THIS YEAR AND I COME BACK IN THREE YEARS, WE PROBABLY WON'T BE TALKING 10 TO $12 MILLION.

[01:55:04]

THAT'S WHAT WORRIES ME.

SO AGAIN THE DIFFERENCE OF OKAY, WELL LET'S JUST DON'T DO IT THEN THAT MOVES OFF THE TABLE.

RIGHT. TELLING ME THAT WELL, WE SHOULD DO THAT IN FIVE YEARS.

THE STICKER SHOCK THAT WE'RE SEEING TODAY IS GOING TO BE EVEN.

IT'S GOING TO BE EVEN GREATER.

SO I THINK YOU JUST TOUCHED ON, ON A COUPLE OF CONCEPTS THAT I WANTED TO HIGHLIGHT, LIKE YOU WERE TAKING US DOWN THAT PATH.

AND AND I APPRECIATE YOU DOING THAT.

THANK YOU. AND, SHANNON, I APPRECIATE YOUR YOUR COMMENTS.

I THINK THEY'RE RIGHT ON.

I WAS JUST TRYING TO BRING OUT THE IDEA THAT, YOU KNOW, WE CAN'T JUST REDUCE COST OR IMPACTS.

WE HAVE TO MOVE IT TO SOMEWHERE ELSE.

SO IF SOMEBODY SAYS, WELL, LET'S REDUCE THIS, OKAY.

WHERE DO YOU WANT TO INCREASE IT? OKAY. THANK YOU.

AND THANK YOU, MAYOR, COUNCIL MEMBER HARRIS.

SAY ONE LAST THING.

EXACTLY WHAT YOU SAID IS WHAT THE COMMUNITY NEEDS TO HEAR.

AND SO THAT NEEDS TO BE PART OF OUR CONVERSATION IS THAT IF I TAKE IT FROM HERE, WHERE DO YOU SUGGEST I TAKE IT FROM? I HAD AN INSTITUTION ASK ME ABOUT THIS WHOLE THING AND MY MY RESPONSE BACK TO THEM IS THAT, YOU KNOW, WHAT? CAN YOU FIGURE OUT ANOTHER WAY TO DO THIS? AND SO I THINK WE NEED TO ASK FOLKS, CAN YOU FIGURE OUT ANOTHER WAY TO DO IF WE'RE NOT THE BRIGHTEST LIGHT ON THE TREE, MAYBE YOU ARE.

AND SO IF YOU CAN FIGURE IT OUT, TELL US, YOU KNOW, AND IF IT WORKS, GREAT, IF IT DOESN'T, WE HAVEN'T LOST ANYTHING.

SO I SAY, LET'S LET'S DO THIS.

LET'S JUST GET OUT THERE AND SEE WHAT HAPPENS.

SO I'M GOING TO PROPOSE THAT WE GO INTO YOUR RECOMMENDATIONS.

AND THEN WE TAKE PUBLIC COMMENT AND THEN WE GIVE OUR FINAL DIRECTION.

THANK YOU MAYOR. WITH THAT, WE ARE TO OUR REQUESTED ACTION AND ADOPTION OF THE NOTICE OF INTENTION.

I AM NOT SURE HOW TO PROCEED.

MAYOR AND COUNCIL.

IT'S JUST A SIMPLE RESOLUTION.

IT'S A NOTICE OF INTENT.

OF COURSE, IF YOU DON'T DO ANYTHING WITH IT, THE NOTICE OF INTENT JUST HAS TO BE DONE.

60 DAYS PRIOR TO THE PUBLIC HEARING, ALL OF THESE OTHER DISCUSSIONS, LIKE I SAID, CAN STILL HAPPEN PRIOR TO THAT.

SO THANK YOU.

AND MADAM MAYOR POINT NUMBER THREE IS THE WRITTEN REPORT AND CASH FLOW ANALYSIS.

STANTEC WILL HAVE A DRAFT REPORT.

IT MIGHT BE 200 PAGES WITH APPENDICES THAT WILL BE ON ON THE WEBSITE PER STATUTE FOR THE PUBLIC TO REVIEW.

THAT EXPANDS ON THE REPORT THAT WAS DRAFT FROM DECEMBER COUNCIL MEMBER MATTHEWS.

SO IT WILL HAVE THE MOST UP TO DATE INFORMATION WITHIN IT.

THAT'S A VERY IMPORTANT COMPONENT OF THIS AS WELL AS THAT REPORT FOR REVIEW.

ALL RIGHT, SO BEFORE WE DISCUSS AND GIVE FINAL DIRECTION, I WOULD LIKE TO TAKE PUBLIC COMMENT.

SO STEPHEN POOR.

HMM'HMM.

OH, GOOD AFTERNOON, MAYOR COUNCIL.

COUNCILWOMAN. HARRIS, YOU ARE THE BRIGHTEST ON THE TREE.

DON'T KID YOURSELF.

I WANTED TO BRING UP A COUPLE OF THINGS RELATED TO THIS, AND I THINK IT KIND OF TIES IN WITH COUNCIL.

HAS BEEN TALKING ABOUT WHAT MATTHEW COUNCILWOMAN MATTHEWS AND HARRIS BROUGHT UP IN PARTICULAR, AND THAT IS SOME OF THE KEY ASSUMPTIONS THAT GO INTO THIS.

AND I'M SURE THAT THEY CAN KICK OUT OF THEIR MODEL.

WHAT'S THE NET RESULT IF YOU TWEAK SOME OF THESE OR IF YOU GO A DIFFERENT WAY OR WHAT'S BEHIND WHAT THEY HAVE? AND I'D LIKE TO JUST HIGHLIGHT TWO DIFFERENT NUMBERS.

TALK ABOUT THE POPULATION GROWTH AND TALK A LITTLE BIT ABOUT COST ESCALATION AND WHERE I'VE USED THOSE NUMBERS OVER MY 30 YEARS PLUS IN THE FINANCIAL INDUSTRY INDUSTRY WHEN I FORECASTED, AND I'M NOT CLAIMING I'M AN EXPERT FORECASTING, I'M RECOGNIZING THAT FORECASTING IS SOMETHING THAT WE MUST DO AND WE'RE NEVER GOING TO GET IT RIGHT, BUT WE'RE GOING TO GIVE IT OUR BEST SHOT.

AND THAT'S WHAT I HOPE THAT THIS COMES TO.

MAYBE THE MEETING WILL HELP REAL QUICK.

SO OVER THE LAST, IF YOU LOOK AT THE ARIZONA REGIONAL ECONOMIC ANALYSIS PROJECT, AND I BROUGHT THIS TO THE COUNCIL'S ATTENTION, WE TALKED ABOUT NOW AND FOR

[02:00:09]

THE LAST TEN YEARS 0.9.

THAT'S YOUR MSA, NOT THE CITY.

WE CAN TALK ABOUT THE DIFFERENCES.

I WOULD SUGGEST, GIVEN THAT WE'VE GOT A LITTLE HOUSING ISSUE, A LAND CONSTRAINT, THAT YOU'RE GOING TO GROW SLOWER THAN THE REST OF THE MSA THAT HAS A LOT MORE LAND THAN YOU DO.

SO LET'S GO INTO THE STAFF COMES UP AND SAYS, OKAY, LET'S PROJECT 1.4%.

OKAY. NOW WHY DOES THAT MATTER? WELL, LAST NOVEMBER 29TH, YOU EMPLOYED A CONSULTANT TO GIVE YOU A REPORT ON A LOT OF THINGS WITH REGARDS TO THE ECONOMICS OF THIS TOWN. AND ONE OF THE THINGS THEY TALKED ABOUT WAS THE POPULATION GROWTH.

AND THEY SUGGESTED IT'S NOT GOING TO GROW 1.4.

IT HASN'T GROWN 1.4 FOR 25 YEARS, FOR GOD'S SAKE.

AND IT'S GOING SLOWER.

WHAT THEY PROJECTED IS GOING TO GROW LIKE 0.75%.

AND AFTER IN 2040, YOU'RE GOING TO SHRINK.

THAT'S THE CONSULTANTS AND THE MEETING YOU ALL SAT AT, OKAY.

NOT STEVE'S.

NOW WHY IS THAT IMPORTANT? BY 2040 YOU'RE AT 89,000, 90,000 PEOPLE.

AND BY 2051, IF YOU GROW AT 1.4, THEN YOU'VE GOT TO GO BUILD THAT PIPELINE FROM RED GAP.

YOU'RE NEVER GOING TO NEED RED GAP IF WE'RE RIGHT AT 0.079.

AND WHY IS THAT? SO WHAT'S BEHIND THOSE NUMBERS FOR DELTA FOR THE FERTILITY RATE IN THIS COUNTRY HAS BEEN DECLINING FOR DECADES.

YOU'RE AT 1.79.

YOU NEED TWO ONE TO HAVE HAVE POPULATION GROWTH.

I ASKED YOUR I ASKED FOR A COUPLE A MINUTE OR TWO.

I HAVE A QUESTION ABOUT YOUR CALCULATIONS ABOUT POPULATION GROWTH AND WHAT AND WHAT WE'RE SEEING NATIONWIDE AND HOW IT IMPACTS HOW IT IS REFLECTED IN FLAGSTAFF.

SURE. WHEN I LOOKED AT THESE NUMBERS BACK FOR ANY FOR NA FOR 80, I TOOK A LOOK AT FOR THESE LAST FIVE DECADES, AND THE POPULATION BY THIS GROUP GAVE THE THE COUNTRY AND THE COUNTRY GREW AT A RATE.

ARIZONA GREW AT A RATE A COUPLE PERCENTAGES HIGHER.

OKAY. NOT TEN A COUPLE OF PERCENTAGE IS HIGHER.

DON'T REMEMBER OFF THE TOP OF MY HEAD.

AND AND AND FLAGSTAFF GREW A LITTLE BIT IN ANY GIVEN DECADE FASTER OR SLOWER THAN ARIZONA DURING THE LAST 50 YEARS.

OKAY. AND AND IF YOU GET CLOSER TO THIS TIME FRAME, THOSE NUMBERS CAN COME VERY CLOSE TO EACH OTHER.

THAT IS, THE GROWTH OF ARIZONA IS VERY CLOSE TO FLAGSTAFF FOR SOME OF THE REASONS WE ALL KNOW WITH REGARDS TO WE DON'T HAVE HOUSING FOR PEOPLE HERE, AND WE'RE NOW ONE OF THE COSTLIEST ZIP CODES IN THE STATE.

AND PEOPLE CAN GO LIVE IN THE VALLEY A LOT CHEAPER, AND THERE'S A LOT OF PLACES THAT THEY COULD GO LIVE OUTSIDE THE VALLEY.

THAT'S GOING TO BE A LOT CHEAPER THAN FLAGSTAFF.

SO I THAT'S THE ANSWER TO THOSE NUMBERS.

YOU CAN GO BACK TO YOUR PRESENTATION FROM, I THINK IT WAS POLLOCK WHO GAVE YOU THAT PRESENTATION ON 1129.

AND THEY GOT THEIR NUMBERS.

AND I JUST LIKE TO SAY THOSE NUMBERS, AND MOST NUMBERS YOU SHOULD ASK ABOUT ARE DRIVEN BY THE FIDELITY FERTILITY RATE, WHICH I HEARD LAST MONTH IS NOW 1.6. YOU NEED THE FERTILITY RATE, THE DEATHS.

WE PREDICT DEATHS PRETTY GOOD HERE IN THIS THAT THAT'S NOT DIFFICULT.

WILD CARDS IMMIGRATION BUT THAT'S DRIVING POPULATION.

WE'RE BARELY GROWING AS A COUNTRY.

WE'RE PROJECTED IN THE FUTURE NOT TO GROW THAT MUCH AT ALL AS A COUNTRY.

AND WHAT'S GOING TO COME HERE GIVEN THE COST OF LIVING, I DON'T KNOW, BUT I WOULD SUGGEST THE 1.4 THAT FEEDS INTO THE RED GAP RANCH PIPELINE AT $160 MILLION, LOOKS LIKE THAT'S NOT GOING TO HAPPEN IN 2050 IF YOU ADJUST THOSE NUMBERS.

BUT PUT IT THROUGH THE MODEL AND SEE WHAT HAPPENS.

THE OTHER SO THEIR GROWTH AT 1% ACCOUNT GROWTH HERE, REMEMBER THAT'S ACCOUNT GROWTH HOUSEHOLDS RIGHT.

WE'RE TALKING ABOUT POPULATION TWO PEOPLE PER HOUSEHOLD MAYBE I DON'T KNOW WHAT THE EXACT NUMBER IS IN FLAGSTAFF.

WE'LL GIVE THAT A SHOT THOUGH.

SO YOU'RE NOT TALKING ABOUT 1.4.

NOT TALKING ABOUT 1%.

YOU'RE TALKING ABOUT HALF OF 0.7.

YOU'RE TALKING ABOUT 3.75 ACCOUNT GROWTH JUST ON THE RESIDENTIAL SIDE.

I KNOW YOU GOT COMMERCIAL AND OTHER THINGS THAT'S GOING TO GROW SLOWER TOO.

BUT ANYWAY, JUST FYI, LAST THING I'LL MENTION THE INFLATION FACTORS HERE.

YOU GOT 3.5%.

YOU GOT UTILITIES AT 6%.

YOU GOT CPI ADJUSTED AT 4%.

SO THERE'S SOMETHING CALLED TREASURY INDEXED INFLATION BONDS TEN YEARS.

THEY TRADE IN THE OPEN MARKET.

YOU LOOK AT THOSE AGAINST THE FIXED RATE OF TEN YEAR TREASURIES.

[02:05:03]

WHAT'S IT BEEN SINCE INFLATION TOOK OFF IN 21? BETWEEN 2 AND 2 AND A QUARTER POINT FOUR.

IS IT 2.4 TODAY, GUYS? NOT THREE AND A HALF.

NOT SEVEN, NOT SIX, NOT FOUR.

2.4. AND I THINK IF YOU THROW SOME OF THESE NUMBERS IN THERE HERE'S THE DOWNSIDE.

HERE'S THE UPSIDE.

COME UP TO COME UP WITH THE RATIONALE WHY SOME OF THESE THINGS ARE GOING TO GROW FASTER.

I COULD COME UP WITH SOME WHY UTILITIES ARE GOING TO GROW FASTER.

I'M OKAY.

BUT I'M JUST POINTING OUT THERE'S SOME NUMBERS OUT THERE, THE MARKET THAT CAN HELP YOU AND GUIDE YOU.

AND I THINK IT'D BE HELPFUL FOR THE COMMUNITY A TO HAVE THAT MEETING AND B TO HAVE THE MODEL OUTPUTS.

THANK YOU FOR MY TIME.

THANK YOU, MR. PORTER.

ALL RIGHT. I DON'T SEE ANY ADDITIONAL PUBLIC COMMENT.

SO ALL RIGHT.

COUNCIL. I'M HEARING THAT WE WANT TO HAVE A WORK SESSION SEPARATE FROM A COUNCIL MEETING OR OR SEPARATE FROM A REGULAR WORK SESSION WITH OTHER ITEMS ON THE AGENDA.

AND. WE WANT TO YEAH.

THE TOWN HALL THAT YOU'RE ALREADY PLANNING ON HAVING.

CORRECT. OR.

WE ACTUALLY HAD THAT EVENT, MAYOR.

IT WAS A WEEK AGO.

YEAH, AT THE EAST FLAGG LIBRARY.

SO THAT'S WHAT I WAS REFERENCING.

WE COULD DO SOMETHING SIMILAR LIKE THAT IF WE WANTED TO DO ANOTHER SEPARATE.

AGAIN. YEAH, I'M THINKING THAT I'M HEARING A CONSENSUS THAT WE WANT TO REDOUBLE OUR EFFORTS TO MAKE SURE THAT THE PUBLIC IS UNDERSTANDING WHAT IT IS THAT WE'RE TALKING ABOUT HERE, AND THAT THEY HAVE THE OPPORTUNITY TO ASK QUESTIONS OR TO WATCH.

WAS THAT RECORDED? I. SO IT WAS A ROUND TABLE.

SO THERE WAS BASICALLY TABLE SET UP IN A ROOM WHERE FOLKS COULD COME IN.

THEY HAVE A MAP OF WHO WAS WHERE.

WE COULD DO THE RATE CALCULATOR FOR THEM, ASK QUESTIONS ABOUT OPERATIONS, MAINTENANCE, THE CAPITAL PROJECTS.

I THINK WE HAD FOUR COMMUNITY MEMBERS IN ATTENDANCE AT THAT POINT.

AARON'S BEEN DOING A LOT OF TABLING, THOUGH, WHERE SHE'S ALSO BEEN ABLE TO SHARE THIS INFORMATION AND DO SOME CALCULATIONS.

SO I'LL TURN IT OVER TO HER SO SHE CAN MAYBE TALK ABOUT THOSE EXPERIENCES AS WELL, IF YOU'D LIKE TO HEAR THAT.

SO MAYOR.

YES, WE'VE BEEN TABLING.

I'VE BEEN ALONGSIDE WATER AWARENESS MONTH.

WE WERE AT SCIENCE SATURDAY AT WILLOW BEND, AND I WAS AT THE AQUA PLEX ON SATURDAY.

WE WERE AT JOE MONTOYA ON WEDNESDAY.

THAT WAS FUN. THOSE GUYS ARE HOOT AND GALS.

THE MOSTLY THE RESIDENTS I'VE TALKED TO, THEY THEY UNDERSTAND IT.

THEY APPRECIATE THE HEADS UP THAT WE'RE GIVING THEM A FIVE YEAR WINDOW OF IMPACTS.

THE ONLY COMMENT CARD I RECEIVED WAS FROM A SENIOR ASKING IF WE'D CONSIDER A SENIOR DISCOUNT.

I'VE PROBABLY TALKED WITH 20 RESIDENTS, 20, 25 RESIDENTS.

SO WE'D LIKE TO GET MORE PARTICIPATION, BUT IT'S NOT COMING.

COUNCIL MEMBER MATTHEWS.

THANK YOU. MAYOR. AND SOMEONE MENTIONED IT EARLIER.

THE RESIDENTIAL.

THERE'S LESS NUMBER OF HOUSEHOLDS THAT WILL BE IMPACTED, ALTHOUGH FAMILIES THAT ARE DOUBLING UP, SHARING ROOMS. THEY WILL THEY WILL BE IN THE TIER THAT TAKES MORE OF A BRUNT OF IT.

BUT I, YOU KNOW, I, I'M JUST NOW HEARING THE BUSINESS COMMUNITY IS NOW PAYING ATTENTION.

THE NONPROFITS WE HAVE, YOU KNOW, TWO NONPROFITS IN TOWN THAT JUST RECENTLY STEPPED INTO, YOU KNOW, MULTI-UNIT FACILITIES THAT HAVEN'T CONSIDERED THAT WE HAVE HOTELS, HOSPITALITY.

I KNOW THAT OUR COMMERCIAL RATES ARE COMBINED WITH, I THINK, OUR SCHOOL RATES OR SOMETHING, BUT STILL THERE'S THAT AVERAGE.

THERE'S MIGHT BE 50 THAT, YOU KNOW, ARE WAY UP HERE IN THE 80,000 OR 100,000 GALLONS A MONTH.

AND MAYBE THEY HAVEN'T THOUGHT ABOUT PAYING ATTENTION TO WHAT THAT DOES.

AND I JUST WANT TO MAKE SURE THAT WE'VE REACHED OUT TO THOSE PEOPLE AND THEY'VE DONE THE RATE CALCULATOR, AND THEY CAN SEE HOW IT'S GOING TO IMPACT THEIR BUSINESS.

AND SO IF WE COULD JUST HAVE ANOTHER TOWN HALL AND IT'LL BE ON OUR SHOULDERS TO MAKE SURE WE'VE REACHED OUT TO OUR CONSTITUENTS AND GET THEM

[02:10:01]

THAT WOULD BE LOVELY.

BESIDES, FOR BECAUSE WE HAVE 80,000 HERE.

SO WE WE WERE PLANNING THE ONE FOR APRIL 11TH THAT WE PUNTED BECAUSE WE DIDN'T HAVE THE RATE CALCULATOR READY YET.

AND THAT WAS GOING TO BE, I THINK, AN ONLINE LIKE WHAT WE DID BACK IN NOVEMBER WHERE PEOPLE CAN CALL IN.

AND WE'RE PRESENTING LIVE AND PEOPLE CAN BE IN THE VENUE, I THINK, AS WELL.

SO WE'LL WORK ON THAT PLAN AND WE'LL TRY TO EXECUTE THAT, YOU KNOW, VERY SOON SO THAT IT CAN HELP INFORM YOU IN ADVANCE, LIKE THE CHAMBER, NOTIFY THEM, GET THEM INVOLVED.

AND. YEAH, WE'LL SEND OUT EMAILS TO EVERYONE IN EVERY WAY WE CAN.

SO AND ERIN, YOU YOU'VE PRESENTED TO THE CHAMBER BOARD, HAVEN'T YOU? ACTUALLY, DIRECTOR JONES HAS MULTIPLE TIMES, AND WE'VE BEEN ON SOME CALLS WITH THEM.

AND WOULD YOU LIKE TO COMMENT ON.

YOUR INTERACTIONS.

YEAH, I THINK FOR CLARIFICATION, I DID HAVE AN OPPORTUNITY TO REPORT TO THE BOARD ON ONE OCCASION, BUT WE HAVE BEEN ENGAGED WITH THE BUSINESS ADVOCACY GROUP AS WE PRESENTED TO THEM MULTIPLE TIMES.

I CONTINUE TO MEET WITH THE ADMINISTRATION FROM THE CHAMBER, WHO ALSO FACILITATES THAT INFORMATION AND ALSO BOUNCE QUESTIONS BACK, AND WE TRY TO RESPOND TO THOSE IMMEDIATELY SO THAT FEEL LIKE THAT'S BEEN A PRETTY CONSTANT CONVERSATION.

WE ALSO HAD A CHANCE TO MEET WITH NIU, AND WE'VE MET WITH SOME OTHER LOCAL GROUPS, WHICH I THINK IS A GOOD TAKEAWAY TO.

I FEEL LIKE WHILE WE'RE TRYING TO GET INTO THE COMMUNITY AND MAKE THAT CONTACT WE ARE ALSO AVAILABLE EITHER THROUGH THE THE CLEAN CLEAN WATER WEBSITE OR YOU CAN REACH US ONLINE.

BUT PEOPLE ARE REACHING OUT TO US.

WE'RE FACILITATING THOSE CONVERSATIONS AS QUICK AS WE CAN AND TRYING TO GET THEIR THE ANSWERS DOCUMENTED THE QUESTIONS AND ANSWERED AND TRY TO BE ATTENDED TO THAT. THANK YOU.

SO COUNCIL MEMBER HOUSE.

THANK YOU, MAYOR. I'M JUST WONDERING FOR THE CALCULATOR THAT'S AVAILABLE.

HAS THERE BEEN TRACKING ON THAT TO SEE HOW MUCH IT'S BEEN UTILIZED OR GATHER ANY DATA FROM THAT? MAYOR AND COUNCIL MEMBER HOUSE.

WE JUST RELEASED IT TODAY, SO WE HAVE ONLY OUR OWN DATA THAT.

BUT WE'LL WE'VE HAD A LOT OF WEBSITE TRAFFIC SINCE THE LAST TIME WE UPDATED YOU.

I WANT TO SAY WE'VE HAD A COUPLE HUNDRED.

MORE VISITS TO THE WEBSITE AND THEN WE CAN TRACK SINCE WE RELEASE INFORMATION THAT THE CALCULATOR IS AVAILABLE.

ALL RIGHT, SO STAFF WILL LET US KNOW WHEN WE CAN ARRANGE A WORK SESSION.

YOU WILL ARRANGE ANOTHER TOWN HALL.

IN IN WHATEVER WAY.

WORKS OUT FOR SCHEDULES AND, AND VENUES AND COUNCIL.

WHAT WE NEED TO DO TODAY IS IS READ THE RESOLUTION IF WE SO CHOOSE.

AND AGAIN THIS IS, THIS IS LIKE WITH THE, THE SORRY I THINK I'M GETTING TIRED AND IT'S ONLY FIVE.

WITH THE PROPERTY TAX.

WHEN WE HAVE TO POST THAT, THAT WE WILL CONSIDER RAISING THE PROPERTY TAX.

AND WE HAVEN'T RAISED IT IN MANY YEARS, BUT WE HAVE TO POST AS A AS A LEGAL MATTER.

SO. ARE WE WILLING TO READ THE RESOLUTION BY TITLE ONLY THIS EVENING? I'M WILLING TO MAKE A MOTION.

I MOVE THAT WE READ RESOLUTION NUMBER 2024, DASH 19 BY TITLE ONLY.

THANK YOU. ALL RIGHT.

THANK YOU.

ANY DISCUSSION? ALL THOSE IN FAVOR? AYE. ANY OPPOSED? OKAY. CITY CLERK.

A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL ADOPTING A NOTICE OF INTENTION TO INCREASE WATER SERVICES RATES OR RATE COMPONENTS, FEES OR SERVICE CHARGES, AND SETTING A PUBLIC HEARING DATE ON JUNE 18TH, 2024.

THANK YOU. CAN I GET A MOTION TO ADOPT? ADOPT RESOLUTION NUMBER 2024, DASH 19.

THANK YOU. CAN I GET A SECOND? I'LL SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? AYE, AYE. ANY OPPOSED? ALL RIGHT. ADOPTED.

THANK YOU SO MUCH.

THANK YOU VERY MUCH.

THANK YOU. IF I MIGHT.

MAYOR, JUST ONE LAST THING.

THE NEXT STEP SLIDE ON HERE WILL REVISE BECAUSE WE'RE TALKING ABOUT THE SAME TOPIC THIS THURSDAY WITH THE WATER COMMISSION.

[02:15:05]

BUT THE FRIDAY IS WHEN WE'LL BE RELEASING THE DRAFT REPORT OF THE FULL STUDY IN DRAFT FORM ONLY.

AND THEN WE'LL WORK WITH YOU.

WE'LL WORK WITH SCHEDULING THAT WORK SESSION IN THESE NEXT FEW WEEKS.

BUT THANK YOU VERY MUCH FOR YOUR ATTENTION.

THANK YOU AND THANK YOU, COUNCIL, FOR YOUR THOUGHTFUL RECOMMENDATIONS AND QUESTIONS.

SO I'VE HAD A REQUEST TO TAKE A BREAK.

SO LET'S TAKE A TEN MINUTE BREAK, AND THEN WE WILL FINISH UP WITH THE LAST CAP.

UPDATE. ALL RIGHT.

WE ARE READY TO GET STARTED.

TNA LAND AVAILABILITY AND SUITABILITY STUDY AND CODE ANALYSIS PROJECT JUST ROLLS OFF THE TONGUE.

[A. Land Availability and Suitability Study and Code Analysis Project (LASS+CAP) Project Update and Discussion STAFF RECOMMENDED ACTION: Discussion item only]

THANK YOU. MAYOR.

GOOD EVENING, MAYOR, VICE MAYOR AND COUNCIL MEMBERS.

I'M HERE WITH OUR INTERNAL PROJECT TEAM.

TIFFANY AND GENEVIEVE, THREE.

JENNIFER MICHAELSON AND JESSICA WATSON.

AND WE ALSO HAVE OUR CONSULTANT TEAM ONLINE WHO WILL BE DOING THE MAJORITY OF THE PRESENTATION.

JUST QUICKLY, WE'RE GOING TO GO OVER THESE ARE THE THINGS WE'RE GOING TO GO OVER IN TODAY'S PRESENTATION.

BUT I JUST KIND OF WANT TO GIVE A REMINDER ABOUT THIS PROJECT.

THE LAND AVAILABILITY AND SUITABILITY STUDY, OR THE LAST IS A SNAPSHOT OF A POINT IN TIME.

AND THIS IS A DATA DOCUMENT THAT IS INFORMING THE CODE ANALYSIS PROJECT.

THE CODE ANALYSIS PROJECT IS BROKEN OUT INTO THREE STEPS, WITH EACH STEP GOING TO OUR OUR INTERNAL STEERING COMMITTEE, BOARD AND COMMISSIONS AND COUNCIL BEFORE MOVING ON TO THE NEXT.

AND RIGHT NOW WE'RE AT STEP ONE WITH THE CODE DIAGNOSIS.

DIAGNOSIS. WE'RE ALL TRYING TO PRACTICE SAYING THAT WORD CORRECTLY.

SO THE LAND AVAILABILITY, SUITABILITY AND THE CODE DIAGNOSIS THAT WE'RE PRESENTING TODAY ARE BOTH FACT FINDING DOCUMENTS THAT WILL BUILD THE BASE FOR THE NEXT TWO STEPS OF THE CAP, WHICH ARE DEVELOPING CONCEPT RECOMMENDATIONS FOR CHANGES TO CODE AND PROCESS.

AND THEN THE LAST STEP, WHICH IS CODE RECOMMENDATIONS AND IMPACT REPORT, WHICH WILL DIVE DEEPER INTO HOW PROPOSED CHANGES WILL MOVE THE NEEDLE ON ACHIEVING SUSTAINABILITY IMPACTS AND THE CO-BENEFITS OF HOUSING AFFORDABILITY AND SUPPLY.

JUST TO KIND OF SET THE TONE FOR WHAT YOU'RE HEARING TODAY AND TO ALSO REMIND YOU THAT YOU'RE GOING TO CONTINUE TO SEE US.

SO JUST ANOTHER REMINDER THAT THIS IS A VERY COLLABORATIVE PROCESS.

IT'S A MULTI PRONGED INITIATIVE TO ADDRESS CRITICAL LONG TERM PLANNING AND RESILIENCE NEEDS.

IT'S A FINANCIAL AND AN ACTUAL PARTICIPANT PARTNERSHIP BETWEEN PLANNING, HOUSING, SUSTAINABILITY AND MOUNTAIN LION AND MOUNTAIN LION WILL BECOME MUCH MORE OF A OF A COMPONENT AS WE TALK ABOUT PROPOSED CODE CHANGES.

BUT THIS IS ALSO PROVIDING JUST A VERY HIGH LEVEL OPPORTUNITY FOR VARIOUS DIVISIONS AND SECTIONS AT THE CITY TO HAVE MUCH NEEDED COORDINATION CONVERSATIONS.

AGAIN, THE PROJECT SCOPE IS TWO PART THE LAND AVAILABILITY SUITABILITY, WHICH IS WHAT LAND IS AVAILABLE FOR DEVELOPMENT AND ITS DEVELOPMENT POTENTIAL AND BARRIERS. WE ARE GOING TO PRESENT TONIGHT, BOTH PUBLICLY OWNED AND PRIVATELY OWNED LANDS WERE BY NO MEANS SAYING THAT WE'RE GIVING ANY WE'RE NOT SUGGESTING THAT THERE'S GOING TO BE DEVELOPMENT ON THE PRIVATELY OWNED LAND.

IT'S JUST REALLY AN INVENTORY OF WHAT LANDS MET A CERTAIN TECHNICAL THRESHOLD TO BE DETERMINED THAT THEY MIGHT BE RIPE FOR REDEVELOPMENT OR DEVELOPMENT.

BUT WE WANT TO BE CLEAR THAT WE'RE NOT SUGGESTING THAT WE'RE DOING ANYTHING WITH ANYBODY'S PRIVATELY OWNED LANDS.

AND THEN THE CODE ANALYSIS PROJECT, WHICH IS AN IN-DEPTH ANALYSIS OF OUR CODES AND PROCESSES THROUGH THE CITY COUNCIL'S LENS OF COMMITMENTS TO ADDRESSING HOUSING AND CLIMATE. AND WE'RE ALSO LOOKING AT WHAT'S WORKING AS WELL AS WHAT'S NOT, BECAUSE WE KNOW THAT OUR CODE HAS ALL OF OUR CODES, HAVE A LOT OF GREAT STUFF IN THEM, AND WE DON'T WANT TO LOSE THAT. SO WE ARE TRYING TO MAKE SURE THAT WE'RE AWARE OF THOSE THINGS SO THAT WE DON'T MAKE CHANGES THAT GO AGAINST THINGS THAT ARE ALREADY WORKING.

AND WITH THAT, I'M GOING TO TURN IT OVER TO OUR CONSULTANT TEAM FOR THE PRESENTATION.

THANK YOU. MICHELLE. GOOD TO SEE EVERYONE.

VIRTUALLY. AT LEAST HERE.

MY NAME IS REID STAPLETON, AND I'M THE PROJECT MANAGER FOR THE LAST CAP TEAM.

AND I WILL GIVE A BRIEF OVERVIEW OF THE LAND AVAILABILITY AND SITE SUITABILITY FINDINGS.

AND THEN I'LL HAND THINGS OVER TO JAMIN KIMBALL FROM CASCADIA PARTNERS, WHO WILL GIVE THE BULK OF THE PRESENTATION ON OUR PRELIMINARY FINDINGS ABOUT THE

[02:20:01]

NEXT SLIDE PLEASE. SO JUST A REAL QUICK OVERVIEW AND RECAP ON THE GOALS OF THE OF LAND AVAILABILITY, AVAILABILITY AND SITE SUITABILITY ANALYSIS.

FIRST OF ALL, AS EVERYONE KNOWS, THERE'S LIMITED LAND LEFT TO DEVELOP MANY, MANY NEEDS FOR THOSE LANDS.

AND WE WANTED TO BETTER UNDERSTAND SPECIFICALLY WHERE ARE THE VACANT SITES AND WHAT'S THE WHAT ARE THE CHARACTERISTICS OF THOSE AND WHAT THAT IS, IS LENDING TOWARDS WITH OUR OVERALL PROJECT IS A BETTER UNDERSTANDING OF WHERE ARE THE ZONED LANDS THAT HAVE CAPACITY FOR RESIDENTIAL DEVELOPMENT, SO THAT WE CAN MAKE SURE THAT THAT THAT CODE ANALYSIS IS REALLY FOCUSED SPECIFICALLY ON THOSE SITES WHERE THERE'S THE GREATEST POTENTIAL FOR RESIDENTIAL DEVELOPMENT.

AT THE SAME TIME, IT PROVIDES DATA POINTS THAT ARE USEFUL IN THE REGIONAL PLANNING PROCESS TO UNDERSTAND HOW DO THESE VACANT LANDS POTENTIALLY FOLD INTO COMPREHENSIVE PLAN AND ZONING DESIGNATIONS THAT ARE BEING CONSIDERED WITH THE REGIONAL PLAN? SO IT'S A PRETTY FORTUITOUS DOVETAILING OF, OF ISSUES COMING TOGETHER THAT IT HELPS INFORM.

NEXT SLIDE PLEASE. SO OUR BROAD ANALYSIS WHEN IT COMES TO THE LAND AVAILABILITY STUDY HAS REALLY BEEN ABOUT GIS, FIRST OF ALL, AND THEN TAKING A MORE CLINICAL AND MORE QUALITATIVE LOOK AT THE DATA POINTS AND LOOKING AT WHERE ARE THEIR ENVIRONMENTAL CONSTRAINTS, WHERE ARE THEIR OTHER PROPERTY CHARACTERISTICS THAT WOULD FURTHER REDUCE DOWN AVAILABLE LAND.

AND FROM THERE WE WE CREATED AN INVENTORY OF VACANT AND UNDERUTILIZED SITES.

ONCE WE HAD THAT POPULATION OF VACANT AND UNDERUTILIZED SITES, THEN WE WORKED WITH A STAKEHOLDER TEAM AT THE CITY TO IDENTIFY SPECIFICALLY WHERE ARE THERE WHAT WE CALL OPPORTUNITY SITES OR PROPERTIES THAT REALLY HAVE THE POTENTIAL TO MOVE THE NEEDLE WHEN IT COMES TO THE CITY'S HOUSING AND CLIMATE GOALS? NEXT SLIDE, PLEASE.

SO WHAT WE FOUND FROM THAT LAND AVAILABILITY STUDY WAS THAT THERE ARE ABOUT 7000 ACRES OF VACANT LAND THAT ARE UNENCUMBERED BY ENVIRONMENTAL CONSTRAINTS, BASED ON OUR BROAD STROKES ANALYSIS.

OF THOSE ENVIRONMENTAL CONSTRAINTS, STEEP SLOPES WAS BY FAR THE THE MOST DOMINANT ENVIRONMENTAL CONSTRAINT THAT FURTHER REDUCED DOWN THE VACANT LAND. ABOUT 6700 ACRES OF THAT VACANT LAND ARE RESIDENTIALLY ZONED.

SO THAT THE THERE'S A SIGNIFICANT AMOUNT OF, OF RESIDENTIALLY ZONED LAND YOU KNOW, A GREATER PROPORTION OF THE VACANT LAND IS RESIDENTIALLY ZONED, ALTHOUGH WE DID LOOK AT COMMERCIAL AND A LITTLE BIT OF INDUSTRIAL LAND AND PUBLIC LAND AS WELL.

OF THE UNDERUTILIZED LAND, ABOUT 4800 ACRES WERE DETERMINED TO BE UNENCUMBERED BY ENVIRONMENTAL CONSTRAINTS.

NEXT SLIDE, PLEASE.

AS I MENTIONED, WE WE TOOK THAT OVERALL POPULATION OF VACANT AND UNDERUTILIZED SITES AND WORKED WITH A STAKEHOLDER TEAM AT THE CITY TO IDENTIFY WHERE ARE THERE ROUGHLY THE TOP 50 SORT OF OPPORTUNITY SITES OF WHERE THERE'S POTENTIAL FOR DEVELOPMENT YOU CAN OR FOR MOVING THE NEEDLE WHEN IT COMES TO THE CITY'S CLIMATE GOALS AND HOUSING PRODUCTION GOALS YOU CAN SEE TO THE RIGHT WERE SITES IDENTIFIED IN THE DOWNTOWN AREA.

AND THEN TO THE LEFT, YOU CAN SEE THE SITES THAT SOME OF THE LARGER TRACKS THAT WERE LOCATED MORE ON THE PERIPHERY OF THE, OF THE CITY LIMITS AND THE STUDY AREA.

NEXT SLIDE PLEASE. SO SOME SOME KEY CONCLUSIONS THAT CAME FROM THIS PROCESS.

ONE IS THAT 36 OF THE OF THOSE 51 OPPORTUNITY SITES ARE COMMERCIALLY ZONED AND YOU'LL HE'LL YOU'LL HEAR JAMIN SPEAK TO THIS SOMEWHAT IN HIS PRESENTATION.

BUT THAT CAUSED US TO REALLY WANT TO TAKE A LOOK AT THE COMMERCIAL ZONE DEVELOPMENT STANDARDS TO MAKE SURE THAT THOSE ARE FACTORED IN.

WHEN WE LOOK AT AT POTENTIAL ADJUSTMENTS TO THE CODE THAT CAN BETTER ACCOMMODATE HOUSING AND HOUSING AFFORDABILITY.

SOME OF THE MORE SIGNIFICANT TRACKS, NINE NINE OF THE SITES, TOTALING ABOUT 2500 ACRES, ARE ZONED RURAL OR ESTATE RESIDENTIAL THAT ALLOWS A ZONING OR THAT ALLOWS A DENSITY OF ABOUT ONE UNIT TO THE ACRE.

SO OBVIOUSLY, FOR THOSE SITES THAT URBANIZE REZONES WOULD BE WOULD BE REQUIRED.

ALSO, THERE'S THERE'S SIGNIFICANT INFRASTRUCTURE DEFICIENCIES, BY AND LARGE, TO MANY OF THOSE SITES, WHICH REALLY ELEVATES THE NEED AND NECESSITY.

IF THOSE ARE ARE TO BE REALIZED FOR HOUSING TO TO REALLY FOCUS AND PRIORITIZE ON ON INFRASTRUCTURE NETWORK PLANNING FOR THOSE FOR

[02:25:03]

AND WITH THAT, I WILL HAND THINGS OVER TO JAMON, AND HE'LL TALK A LITTLE BIT HOW THIS HAS TRANSITIONED INTO THE CODE DIAGNOSIS.

GREAT. THANKS, REED.

SO I'M JIMMY KIMMEL.

GOOD TO BE BACK WITH YOU.

COUNCIL AND AND MAIER TONIGHT.

SO I'M WITH CASCADIA PARTNERS.

OUR ROLE ON THE PROJECT IS TO DO MOST OF THE ANALYSIS, PRIMARILY FOCUSING ON THE ZONING AND SUBDIVISION STANDARDS IN THE CODE.

SO I'M GOING TO FOCUS I'M GOING TO FOCUS MY PRESENTATION MAINLY ON THAT PARTS OF THE CODE.

AND THEN WE'LL ALSO TOUCH ON SOME, SOME CODE ISSUES WE'VE IDENTIFIED IN THE ENGINEERING AND BUILDING CODE STANDARDS.

SO. EXCUSE ME.

BEFORE WE GET TO THAT, I WANT TO DO A JUST A QUICK OVERVIEW OF HOW WE APPROACH THIS PROJECT.

GO AHEAD AND GO TO THE NEXT SLIDE.

SO JUST KIND OF RESTATE OUR UNDERSTANDING OF THE PURPOSE OF THE PROJECT.

SO WE KNOW THE CITY HAS ADOPTED BOTH HOUSING AND CLIMATE EMERGENCIES.

AND THESE CALL FOR BOLD AND URGENT ACTION ON THESE ISSUES.

THEY ARE TRULY EMERGENCIES.

AND THERE'S A RECOGNITION THAT THE CITY'S CODES ARE PART OF THE PROBLEM.

AND FOR MAYBE FOR A VARIETY OF REASONS BUT THE CITY IS NOT SURE WHICH SPECIFIC CODE PROVISIONS ARE MOST PROBLEMATIC.

AND TO ONE EXTENT, THE CODES ARE A BARRIER TO HOUSING AND CLIMATE ACTION.

AND SO WE'RE TASKED WITH ANSWERING THIS QUESTION OF WHAT SPECIFIC CODE PROVISIONS ARE GETTING IN THE WAY, AND WHAT ARE THE MOST IMPORTANT KINDS OF CODE CHANGES THAT ARE NEEDED TO MAKE SURE THAT YOU THAT THE CITY CAN MAKE PROGRESS ON THESE HOUSING AND CLIMATE GOALS.

NEXT SLIDE. SO THIS IS A RELATIVELY COMPLEX TASK.

TO DO THIS AS WE'RE LOOKING AT A VARIETY OF DIFFERENT KINDS OF CODES AND LOOKING AT FROM THESE TWO LENSES, WHICH ARE COMPLEX ISSUES IN THEMSELVES.

AND SO THAT'S WHY WE DIVIDED THIS PROCESS UP INTO THREE PHASES.

AS MICHELLE MENTIONED WE ARE JUST IN THIS FIRST PHASE TONIGHT, REALLY DIAGNOSING THE PROBLEMS IN THE CODE, TRYING TO KIND OF REALLY DEFINE THE SCOPE AND THE NATURE OF THE ISSUES.

AND SO NEXT WE'LL TURN TO DEVELOPING SOME KIND OF CONCEPTUAL SOLUTIONS.

SO THE KINDS OF CODE CHANGES THAT MAY BE EFFECTIVE TESTING THOSE AND THEN REFINING THEM INTO SPECIFIC RECOMMENDATIONS.

BEFORE WE DO THAT, THOUGH, WE WANT TO REALLY MAKE SURE YOU HAVE A CHANCE TO GET INFORMED ON WHAT WE SEE ARE THE CODE KEY ISSUES IN THE CODE AND TO WEIGH IN WITH, YOU KNOW, YOUR EXPERIENCE, YOU KNOW, LIVING, WORKING AND REVIEWING DEVELOPMENT APPLICATIONS AND FLAGSTAFF.

COULDN'T GO TO THE NEXT SLIDE.

SO THE CITY HAS MULTIPLE KIND OF PLANS THAT DOCUMENT THEIR GOALS AND POLICIES RELATED TO HOUSING AND CLIMATE.

AND SO ONE OF OUR FIRST STEPS WAS TO TRY TO GET A HANDLE ON WHAT ARE ALL THE DIMENSIONS OF THE HOUSING AND CLIMATE GOALS.

THOSE ARE TWO BIG ISSUES, AND THERE'S DIFFERENT PARTS OF EACH OF THOSE.

AND SO IN ORDER TO DO THAT, WE KIND OF SYNTHESIZED ALL THE VARIOUS GOALS THAT WERE ACROSS THESE PLANS AND IDENTIFIED A SET OF KEY OUTCOMES.

AND SO THAT'S WHAT YOU SEE LISTED HERE.

THERE'S A LOT OF THEM.

WE THOUGHT THIS WAS AN IMPORTANT STEP BECAUSE IT HELPED US TO BE ABLE TO PROVIDE AN EVALUATION OF, FOR EACH CODE PROVISION THAT WE FIND TO EITHER BE A BARRIER TO HOUSING OR CLIMATE.

WE CAN SAY, WELL, WHAT SPECIFIC HOUSING OUTCOME OR CLIMATE OUTCOME IS THIS CODE PROVISION A BARRIER TO AND REALLY ZONING, HONING IN ON WHAT'S THE KEY HOUSING OUTCOME THAT MIGHT BE IMPROVED IF WE MODIFY THIS PART OF THE CODE.

SO YOU'LL SEE THAT IN THE, IN THE REPORT.

AND THERE'S A DETAILED ANALYSIS FOR EACH CODE PROVISION OF WHICH THOSE OUTCOMES ARE IMPACTED.

GO AHEAD AND GO TO THE NEXT SLIDE.

SO AS I MENTIONED, THIS SCOPE OF THIS CODE ANALYSIS IS COMPREHENSIVE.

SO IT INCLUDES ALL REGULATIONS THAT AFFECT DEVELOPMENT IN FLAGSTAFF, AND THAT INCLUDES ALL THE RELEVANT TITLES IN THE MUNICIPAL CODE, INCLUDING BOTH THE ZONING AND SUBDIVISION CODE, BUT ALSO ENGINEERING STANDARDS BUILDING AND FIRE CODE AND THE TECHNICAL DESIGN MANUALS THAT ACCOMPANY THOSE PARTS OF THE CODE.

AND SO THAT'S WHY, YOU SEE, AS YOU HAVE A PLANNING FIRM HERE AND CASCADIA, AND WE'RE TASKED WITH THE ZONING AND SUBDIVISION CODES.

WE ALSO HAVE DAO LOOKING AT ENGINEERING STANDARDS AND GBD AND ARCHITECTURE FIRM HELPING WITH THE BUILDING CODE.

[02:30:02]

EXCELLENT. SO HOW DO WE APPROACH THIS WORK GENERALLY? AND SO AFTER KIND OF A CLOSE REVIEW OF ALL OF THE CITY'S CODES, WE INTERVIEWED BOTH CITY STAFF AND MEMBERS OF THE DEVELOPMENT COMMUNITY.

SO WE HAD SEVERAL FOCUS GROUPS THAT INCLUDED DEVELOPERS WHO ARE PRIMARILY BUILDING HOUSING AND COMMUNITY TODAY.

WE REVIEWED SOME PERMIT FILES FROM SOME OF THE MORE COMPLEX DEVELOPMENT PROJECTS.

THAT HELPS US TO GET A REALLY INSIGHT INTO KIND OF THE KINDS OF CODE ISSUES THAT ARE COMING UP IN THE DEVELOPMENT REVIEW PROCESS.

AND THEN LASTLY, AS YOU'LL SEE IN THIS PRESENTATION, WE USE SOME BUILDING AND FINANCIAL MODELING TOOLS TO TRY TO MORE CLOSELY ANALYZE SOME ISSUES. AND SO YOU'LL SEE IN THIS PRESENTATION SOME OF THOSE 3D MODELS AND FINANCIALS THAT COME OUT OF THAT, THAT NOT ONLY HELP TO KIND OF ILLUSTRATE THESE ISSUES, BUT QUANTIFY THEM AND HELP YOU WILL HELP US AS WE GO FURTHER IN TESTING WHETHER OR NOT CHANGES IN THE CODE WOULD ACTUALLY MOVE THE NEEDLE ON THE THINGS WE CARE ABOUT RELATED TO HOUSING AND CLIMATE.

OKAY. GO TO THE NEXT SLIDE.

SO I'LL GO AHEAD. AND NOW TURN TO SUMMARIZING OUR FINDINGS FROM THE CODE DIAGNOSTIC.

AND I'M GOING TO START WITH THE ZONING AND SUBDIVISION CODES.

AND THEN I'LL PASS IT ON TO REID TO COVER THE ENGINEERING CODE SECTION AND MARK FROM GBD, WHO WILL COVER THE BUILDING CODES.

NEXT SLIDE. SO SOME SOME CONTEXT SETTING BEFORE WE DIVE INTO THE ZONING AND SUBDIVISION CODE.

SO AS REED MENTIONED, THE WORK ON THE LAST ANALYSIS WAS VERY USEFUL FOR US TO UNDERSTAND WHERE IS IT MOST IMPORTANT TO FOCUS OUR ANALYSIS? AND, YOU KNOW, ANSWERING THAT QUESTION OF WHERE IN PARTICULAR IS MOST NEW HOUSING AND NEW DEVELOPMENT LIKELY TO OCCUR IN THE CITY? AND THE LAST WAS REALLY HELPFUL IN ANSWERING THIS.

AND SO MOST OF THE CITY'S BUILDABLE LAND IS IN THE RURAL RESIDENTIAL AND ESTATE RESIDENTIAL ZONE DISTRICTS TODAY.

AND AS LARGER DEVELOPMENTS AND SUBDIVISIONS OCCUR.

IN THOSE AREAS.

HISTORICALLY, THOSE HAVE BEEN REZONED TO ANOTHER ZONE THAT ALLOWS FOR HIGHER DENSITIES.

AND SO, AS YOU'LL SEE IN THE DIAGNOSTIC REPORT, IN THIS PRESENTATION, WE FOCUS MORE ON THE SINGLE FAMILY RESIDENTIAL, MEDIUM DENSITY RESIDENTIAL COMMERCIAL ZONES, THOSE ZONES THAT ARE LIKELY TO BE THE KIND OF RECEIVING ZONES WHEN PROPERTIES ARE REZONED FROM IR OR RR.

THERE'S A HELPFUL CONTEXT, AS ALTHOUGH THE ZONE THAT NOW THE REGIONAL PLAN IS LIKELY TO ALLOW MANY OF THOSE PROPERTIES, MANY OF THOSE SITES WHERE THERE'S SIGNIFICANT BUILDABLE LAND TO BE REZONED.

NEXT SLIDE. SO WE ALSO KNOW AND WANTED TO TAKE INTO ACCOUNT WHERE THE REGIONAL PLAN TODAY AND AS IT EVOLVES, AS IT'S BEING DEVELOPED THIS YEAR WHERE IT WOULD CALL FOR NEW HOUSING TO BE DEVELOPED IN ORDER TO HELP MEET CLIMATE AND HOUSING GOALS. AND ONE OF THE MAJOR PRIORITIES COMING OUT OF THE REGIONAL PLAN IS TO ENCOURAGE INFILL OF HOUSING WITHIN FLAGSTAFF'S EXISTING NEIGHBORHOODS.

AND THAT LOOKS DIFFERENT IN DIFFERENT LOCATIONS.

BUT GENERALLY THERE'S THERE ARE MANY REASONS THAT INFILL HOUSING IS A GOOD IDEA AND WOULD ADVANCE THE CITY'S HOUSING AND CLIMATE GOALS.

AND SO FOR THAT REASON, WE LOOKED CLOSELY AT THE COMMERCIAL ZONES IN PARTICULAR, WHICH HAVE HISTORICALLY ACTUALLY HAD A LOT OF HOUSING DEVELOPMENT IN THEM, AND THEN ALSO THOSE MEDIUM DENSITY AND HIGH DENSITY RESIDENTIAL ZONES AS WE BELIEVE THAT'S WHERE THE BULK OF THIS INFILL HOUSING WILL OCCUR.

THE NEXT SLIDE. WE ALSO KNOW THAT THE REGIONAL REGIONAL PLAN RECOGNIZES THAT NEW HOUSING MUST ALSO OCCUR IN ORDER TO MEET YOUR HOUSING NEEDS IN THE FUTURE.

NEW HOUSING MUST ALSO OCCUR IN SOME OF THOSE AREAS THAT ARE ZONED ESTATE, RESIDENTIAL OR RURAL RESIDENTIAL.

TODAY, MORE ON THE PERIPHERY OF THE CITY, WHAT WE MIGHT CALL GREENFIELD DEVELOPMENT.

AND SO WE'RE ASKING REALLY TWO QUESTIONS OF THE CODE WHEN WE'RE THINKING ABOUT NEW HOUSING IN THOSE AREAS IS FIRST IS HOW WELL IS THE ZONING, REZONING AND SUBDIVISION PROCESS WORKING TO FACILITATE HOUSING PRODUCTION.

AND THEN WHEN REZONING OCCURS, HOW CAN WE BE SURE THAT THE NEW DEVELOPMENT THAT SUBJECT TO THOSE NEW ZONING STANDARDS WILL ADVANCE YOUR HOUSING AND CLIMATE GOALS?

[02:35:01]

OKAY. GO TO THE NEXT SLIDE.

SO ONE THING WE ALWAYS LIKE TO ASK IN A PROJECT LIKE THIS IS, YOU KNOW, WHAT HAPPENS IF HOUSING PRODUCTION DOESN'T KEEP PACE WITH DEMAND.

AND IN MOST PLACES, THIS MEANS THAT LOWER INCOME FOLKS IN THE COMMUNITY ARE MORE LIKELY TO BE DISPLACED FROM THEIR NEIGHBORHOOD, OR EVEN DISPLACED FROM THE CITY IN GENERAL AS PRICES RISE.

HOUSING PRODUCTION CAN'T KEEP UP WITH DEMAND.

SUPPLY IS CONSTRAINED.

AND THOSE ARE THE KINDS OF FOLKS THAT USUALLY AREN'T ABLE TO STAY AND WITHSTAND THOSE MARKET PRESSURES.

AND SO AS PART OF THIS PROJECT, WE STUDIED WHERE THE COMMUNITIES IN FLAGSTAFF ARE THAT MAY BE MORE VULNERABLE TO WHAT WE WOULD CALL DISPLACEMENT.

AND SO THAT'S WHAT THIS MAP SHOWS.

HERE IS THE OUTCOME OF THAT ANALYSIS SHOWING AREAS WHERE THERE ARE GREATER POPULATIONS THAT WOULD BE VULNERABLE TO RESIDENTIAL DISPLACEMENT.

AND SO IT'S IMPORTANT TO KEEP IN MIND THAT THE RESEARCH ON DISPLACEMENT POINTS TO TWO KEY FINDINGS.

AND ONE IS THAT HOUSING PRODUCTION ACTUALLY HELPS TO MITIGATE DISPLACEMENT.

AND SO MORE HOUSING SUPPLY TENDS TO FLATTEN HOUSING PRICES AND REDUCE THAT PRESSURE.

THAT WOULD LEAD TO DISPLACEMENT.

HOWEVER, THAT HOUSING MUST BE PRODUCED ACROSS THE CITY IF IT'S LIMITED TO AREAS ONLY WHERE THE HOUSEHOLDS ARE VULNERABLE TO DISPLACEMENT AND LOCALIZED TO THOSE NEIGHBORHOODS, THEN IT COULD ACTUALLY MAKE DISPLACEMENT WORSE.

AND SO IF YOU GO TO THE NEXT SLIDE, WITH THAT IN MIND WE LOOKED AT WHERE DO THOSE DISPLACEMENT VULNERABLE COMMUNITIES, WHAT KINDS OF ZONE DISTRICTS ARE CURRENTLY MAPPED THERE? AND WHAT MIGHT THAT MIGHT TELL US ABOUT WHERE WE MIGHT FOCUS SOME ANALYSIS AND THINK ABOUT THE KINDS OF CHANGES THAT WOULD MAKE SURE THAT THEIR HOUSING OPPORTUNITIES IN ALL ZONES AND IN FLAGSTAFF, MANY OF THOSE NEIGHBORHOODS THAT ARE VULNERABLE ARE MAPPED TO THOSE HIGHER DENSITY RESIDENTIAL AND COMMERCIAL ZONES.

THERE'S SORT OF A WORD OF CAUTION THERE THAT WE WOULD LIKE TO SUPPORT INFILL DEVELOPMENT IN THOSE ZONES.

BUT IF THOSE ARE THE ONLY PLACES WHERE HOUSING DEVELOPMENT IS OCCURRING, THAT IS WHAT'S MORE LIKELY TO LEAD TO MORE OF THOSE HOUSEHOLDS BEING DISPLACED AND NOT HAVING SOMEWHERE ELSE TO LAND.

AND SO WE'RE FOCUSING ON BOTH THOSE HIGHER DENSITY AND COMMERCIAL ZONES, BUT ALSO THE KIND OF LOWER AND MEDIUM DENSITY ZONES WHERE THAT ARE MORE LIKELY TO BE MAPPED OUTSIDE OF THOSE NEIGHBORHOODS OR BE REMAPPED IN OTHER AREAS REZONED IN OTHER AREAS THAT AREN'T AS VULNERABLE TO DISPLACEMENT. OKAY, THAT'S SOME CONTEXT.

IF YOU GO TO THE NEXT SLIDE AND WE GET INTO SOME OF THE KEY BARRIERS AND ISSUES HERE.

AND SO WITH THAT CONTEXT IN MIND WHAT ARE SOME OF THOSE KEY ISSUES THAT ARE HOLDING BACK THE CITY FROM MEETING ITS HOUSING AND CLIMATE GOALS, SPECIFICALLY IN ZONING AND SUBDIVISION CODES? AND SO THIS IS A KIND OF A OVERVIEW SLIDE THAT GIVES YOU A SNAPSHOT OF ALL OF THE MAJOR ISSUES THAT WE HAVE IDENTIFIED IN THE ZONING AND SUBDIVISION CODE.

SEE, SOME OF THOSE ISSUES ARE SOMEWHAT CITY WIDE.

THEY APPLY TO MOST DEVELOPMENT AND MOST SITUATIONS, AND THEN THERE ARE SOME THAT ARE SPECIFIC TO CERTAIN ZONING DISTRICTS, AND THEY'RE COLOR CODED.

AS WE GO THROUGH THIS SLIDE DECK, YOU'LL SEE THAT THOSE COLORS USED TO KIND OF RELATE BACK TO WHICH ZONES OR AREAS ARE WE TALKING ABOUT? NEXT SLIDE. SO I WANT TO START WITH ONE OF THE MORE PREDOMINANT OR COMMON ISSUES THAT APPLIES TO A LOT OF DIFFERENT KINDS OF HOUSING DEVELOPMENT, AND THAT IS THE REZONING AND SUBDIVISION PROCESSES.

AND SO OUR FINDING IS THAT THESE PROCESSES ARE RELATIVELY COMPLEX.

THEY'RE SOMEWHAT CUMBERSOME.

AND THEY MIGHT BE SLOWING DOWN THE PACE OF HOUSING PRODUCTION OR MAYBE EVEN DETERRING DEVELOPERS FROM PROPOSING REZONINGS.

AND WE THINK THAT GIVEN WHERE YOUR BUILDABLE LAND IS AND WHERE YOU NEED HOUSING DEVELOPMENT TO OCCUR IT'D BE REALLY IMPORTANT THAT THE REZONING PROCESS IS WORKING EFFICIENTLY AND SMOOTHLY TO MAKE SURE THAT THAT IS NOT A BARRIER TO HOUSING DEVELOPMENT.

WE SEE THE MAIN ISSUE WITH THE REZONING PROCESS IS THE REQUIREMENT TO SECURE A DEVELOPMENT AGREEMENT PRIOR TO APPROVAL OF A REZONING.

THIS FORCES DEVELOPERS TO COMMIT TO A VERY SPECIFIC DEVELOPMENT PLAN RELATIVELY EARLY IN THE PROCESS.

SOMETIMES THAT PLAN BECOMES INFEASIBLE AFTER FURTHER STUDY.

[02:40:03]

SO WE THINK ALLOWING THOSE KINDS OF COMMITMENTS TO BE MADE, EITHER LATER IN THE PROCESS OR THROUGH A DIFFERENT MECHANISM COULD PROVIDE SOME BETTER, SOME MUCH NEEDED KIND OF FLEXIBILITY IN THE PROCESS.

AND THEN SEPARATELY, WE FIND THERE'S TWO ISSUES WITH THE SUBDIVISION PROCESS.

THE FIRST IS THAT THE CONCEPTUAL PLAT PHASE OF THE PROCESS IS PROBABLY UNNECESSARY.

IT'S MORE COMMON TO HAVE A TWO STAGE SUBDIVISION PROCESS, AND THE CITY HAS A THREE STAGE PROCESS.

AND SECOND, REQUIRING THAT CITY COUNCIL APPROVAL AT ALL STAGES OF THE SUBDIVISION PROCESS AND FOR ALL KINDS OF SUBDIVISIONS, TENDS TO LENGTHEN THE PROCESS AND INCREASE THE PERCEPTION OF UNCERTAINTY AND RISK FOR DEVELOPERS, WHICH MAY BE DETERRING SOME HOUSING DEVELOPMENT.

OKAY. NEXT SLIDE.

SO MANY ZONES WILL BE, OR MANY NEW SUBDIVISIONS WILL BE REZONED TO THE R1 SINGLE FAMILY ZONE.

CAN YOU MICHELLE.

YEAH, THERE WE GO. THERE'S MULTIPLE PARTS TO THIS ONE.

SORRY. SO WE'RE GOING TO TURN TO SOME OF THE ZONE KIND OF SPECIFIC STANDARDS THAT WE'VE, WE'VE FOUND TO BE A CHALLENGE IN THIS SINGLE FAMILY RESIDENTIAL ZONE. SO THIS ZONE ALLOWS DENSITIES UP TO SIX UNITS PER ACRE.

AND ON PAPER, THIS IS KIND OF A REASONABLE DENSITY LEVEL FOR A SINGLE FAMILY SUBDIVISION.

IN REALITY, THERE ARE OTHER REGULATIONS THAT PREVENT DEVELOPERS FROM ACTUALLY REACHING THAT DENSITY LEVEL.

AND SO IT'S NOT REALLY POSSIBLE TO MAXIMIZE THE DENSITY ACCORDING WHILE MEETING OTHER STANDARDS.

AND SO THE TWO MAIN KIND OF CULPRITS THERE, LIMITING DENSITY ARE MINIMUM STREET WIDTH, WHICH READ I THINK WE'LL DISCUSS A LITTLE MORE DETAIL IN THE MINIMUM LOT SIZE OF 6000FT².

GO TO THE NEXT SLIDE. SO THESE CONSTRAINTS ON DENSITY ARE IMPORTANT BECAUSE IT ACTUALLY DIRECTLY AFFECTS HOUSING AFFORDABILITY.

SO THIS LEVEL OF DENSITY AND GENERALLY LOWER DENSITY USUALLY RESULTS IN LESS AFFORDABLE HOUSING FOR A COUPLE OF REASONS.

ONE IS THAT THERE ARE HIGHER LAND COSTS PER UNIT.

SO THE COST OF LAND MUST BE SPREAD ACROSS FEWER HOMES, WHICH GENERALLY MEANS RAISING THE MINIMUM PRICE THAT'S NEEDED FOR EACH HOME.

AND SECONDLY IT ALSO TENDS TO ENCOURAGE A LARGER UNIT SIZES.

SO IF EACH HOME HAS TO ABSORB MORE LAND COSTS, DEVELOPERS ARE MORE LIKELY TO INCREASE THE SIZE OF THE UNITS TO MAKE THEM MORE MARKETABLE TO HIGHER INCOME BUYERS.

AND SO OUR MODELING FOUND THAT IN THE R1 ZONE TODAY, AT THIS DENSITY LEVEL, A TYPICAL 2000 SQUARE FOOT HOME MUST SELL FOR ABOUT $940,000 IN ORDER FOR THAT TO BE ECONOMICALLY VIABLE AS A PROJECT FOR A HOUSING DEVELOPER.

SO YOU NEED TO EARN ABOUT 275% OF THE MEDIAN INCOME IN FLAGSTAFF TO AFFORD THAT.

SO IT'S CLEAR THAT'S THAT'S OUT OF REACH FOR MOST FAMILIES OR MOST HOUSEHOLDS.

AND IN FLAGSTAFF.

SO THE QUESTION IS, WHAT KINDS OF CHANGES COULD BE MADE TO HELP ALLOW SOME SOME HIGHER DENSITIES THAT COULD CHIP AWAY AT SOME OF THOSE COSTS, MAKE IT A LITTLE BIT EASIER TO BUILD FOR MODERATE INCOME HOUSEHOLDS IN THIS ZONE DISTRICT.

THE ZONE DISTRICT DOES ALLOW SOME ALTERNATIVE HOUSING TYPES, KIND OF ON TWO SINGLE FAMILY DETACHED HOMES.

AT LEAST KIND OF ON PAPER.

BUT THOSE ALLOWANCES ARE RELATIVELY RESTRICTIVE AND SORT OF NARROW.

AND WE THINK THEY ARE ACTUALLY DISCOURAGING DEVELOPERS FROM BUILDING ANYTHING BUT DETACHED SINGLE FAMILY HOMES.

SO TAKING A LOOK AT HOW THE DEFINITIONS OF HOUSING TYPES AND WHAT KINDS OF HOUSING TYPES ARE ALLOWED IS WOULD BE BENEFICIAL.

NEXT SLIDE. AND THEN MORE LOOKING AT THE CLIMATE ANGLE.

THERE'S A QUESTION OF EVEN IF THAT DENSITY OF SIX UNITS PER ACRE IS ACHIEVED, THAT DENSITY FALLS WELL BELOW WHAT WOULD SUPPORT A MULTI-MODAL TRANSPORTATION SYSTEM.

AND SO THE RESEARCH HAS FOUND THAT A MINIMUM DENSITY NEEDED FOR TRANSIT SERVICE TO BE ECONOMICALLY VIABLE IS SOMEWHERE IN THE RANGE OF 8 TO 15 UNITS PER ACRE.

AND THIS HAPPENS TO ALSO BE THE DENSITY LEVEL THAT IS NEEDED TO KIND OF A MINIMUM DENSITY TO SUPPORT WALKABLE NEIGHBORHOOD RETAIL BUSINESSES.

AND SO TO SUPPORT MORE SUSTAINABLE TRANSPORTATION OPTIONS, IT WOULD ALSO MAKE SENSE FOR THE R1 ZONE TO ALLOW SOME SLIGHTLY HIGHER DENSITIES.

NEXT SLIDE. SO TURNING NOW TO THE MEDIUM DENSITY ZONE.

UNLIKE THE R1 ZONE, THE STATED INTENT OF THIS ZONE IS TO ENCOURAGE A WIDER VARIETY OF HOUSING TYPES, INCLUDING APARTMENTS OR CONDOS.

THE MAXIMUM DENSITIES OF THE ZONE IS 14 UNITS AN ACRE.

BUT THAT'S THE MAIN BARRIER TO APARTMENTS OR CONDOS BEING BUILT IN THIS ZONE.

[02:45:02]

IT'S A RELATIVELY INEFFICIENT USE OF THE SITE.

AND UNLIKELY TO BE BUILT.

THE PROJECT THAT'S MORE LIKELY TO BUILD IS THE ONE ON THE RIGHT.

WHICH HAS 1600 SQUARE FOOT TOWNHOMES.

THIS PROJECT IS LIKELY TO BE MUCH MORE PROFITABLE THAN THE ONE ON THE LEFT.

SO IF THE CITY WANTS TO ENCOURAGE SOME SMALLER AND AFFORDABLE UNITS IN THIS MR. ZONE, IT WOULD ALSO MAKE SENSE TO LOOK AT THAT MAXIMUM DENSITY REGULATION MR..

TO CLARIFY, THAT DOESN'T NECESSARILY MEAN THAT THE CODE NEEDS TO ALLOW TALLER BUILDINGS OR MORE LOT COVERAGE OR REDUCE SETBACKS.

IT'S REALLY JUST STRICTLY THAT UNITS PER ACRE.

THAT IS THE MAJOR BARRIER TO SMALLER AND MORE AFFORDABLE UNITS.

OKAY. LET'S GO TO THE RESOURCE PROTECTION OVERLAY ZONE.

NEXT SLIDE. SO MANY HOUSING DEVELOPMENTS IN THE ROSE RESIDENTIAL ZONES ARE ALSO SUBJECT TO THE RESOURCE PROTECTION OVERLAY ZONE.

THIS IS A ZONE THAT APPLIES TO IN AREAS THAT HAVE EXISTING FOREST SLOPES OR FLOODPLAINS AND GENERALLY REQUIRES ABOUT 30 TO 40% OF THE RESOURCES ON THE SITE AS NATURAL RESOURCES TO BE PRESERVED.

AND SO THERE'S AN INHERENT TRADE OFF HERE IS THAT THAT IS A SIGNIFICANT AMOUNT OF AREA THAT CAN'T BE DEVELOPED WITH HOUSING.

THERE'S AN IMPORTANT VALUES IN PRESERVING SOME OF THOSE RESOURCES.

BUT WE WANTED TO POINT OUT THAT THERE IS A TRADE OFF THERE.

AND BECAUSE SUCH A HIGH AMOUNT OF THOSE RESOURCES MUST BE PRESERVED, THERE'S ALSO BEEN A OBSERVATIONS THAT DEVELOPERS ARE CHOOSING TO KIND OF SQUEEZE IN HOMES VERY CLOSE TO AND NEXT TO EXISTING MATURE TREES WHICH HAS THE ACTUAL KIND OF CONSEQUENCE OF POTENTIALLY INCREASING THE RISK OF AN EXPOSURE TO WILDFIRE HAZARD.

NEXT SLIDE. SO THIS LEVEL OF JUST PRESERVATION ON ITS OWN IS NOT SO MUCH OF A CHALLENGE, BUT WE ACTUALLY THINK IT'S COMBINED WITH ANOTHER REGULATION THAT MAKES THE RPO A SIGNIFICANT BARRIER TO HOUSING PRODUCTION.

AND THAT IS THAT THE ZONE LIMITS DENSITY BELOW THE BASE ZONE.

IN ADDITION TO REQUIRING THOSE PRESERVATION AREAS.

AND SO IN THE MR. ZONE, FOR EXAMPLE IF YOU WERE IN THE RESOURCE PROTECTION OVERLAY, YOU NOT ONLY HAVE TO SET ASIDE THE PRESERVED AREAS, BUT THEN IN THE DEVELOPED AREAS YOU MUST BUILD AT A LOWER DENSITY AND BUILD FEWER UNITS.

WE THINK THAT'S UNNECESSARY TO DO BOTH OF THOSE THINGS AT THE SAME TIME.

POTENTIALLY. NEXT SLIDE.

SO TURNING TO THE COMMERCIAL ZONES USER AREAS WHERE THE CITY HAS SUPPORTED HIGH DENSITY HOUSING IN THE PAST.

HOWEVER, IN AS PART OF THE HIGH CAPACITY HOUSING CHANGES IN 2021, A CONDITIONAL USE PERMIT WAS NOW IS NOW REQUIRED FOR ANY PROJECT THAT EXCEEDS A DENSITY OF 29 UNITS AN ACRE.

SO WE'LL TALK ABOUT THAT CONDITIONAL USE PERMIT.

SHORTLY. BUT THAT IS A MAJOR BARRIER.

IT LIMITS THE ESSENTIALLY A PROJECT THAT WOULD NOT APPLY FOR A CUP.

WE LIMIT IT TO THIS KIND OF MODEL THAT YOU'RE SEEING HERE, WHICH IS A TWO STORY BUILDING WHERE MOST OF THE GROUND FLOOR NEEDS TO BE IN COMMERCIAL SPACE.

THIS IS JUST A PROJECT THAT'S SIMPLY NOT ECONOMICALLY FEASIBLE IN A COMMERCIAL ZONE.

LAND COSTS ARE HIGH IN THESE ZONES, AND MORE UNITS ARE REALLY NECESSARY FOR THESE KINDS OF PROJECTS TO BE VIABLE.

THE NEXT SLIDE. SO TURNING TO PARKING REQUIREMENTS.

SO IN THESE COMMERCIAL ZONES THAT ALLOW RELATIVELY HIGH DENSITY, IF THE DEVELOPER WAS TO APPLY FOR A CUP AND BUILD AT THAT HIGHER DENSITY, ONE OF THE THINGS THAT THEY WOULD RUN INTO IS THAT THE CITY'S MINIMUM PARKING REQUIREMENTS ARE A SIGNIFICANT BARRIER TO BUILDING MORE AFFORDABLY AND MORE SUSTAINABLY.

AND SO THE STANDARDS REQUIRE EFFECTIVELY, IF YOU'RE BUILDING IN A RELATIVELY HIGH DENSITY STANDARDS EFFECTIVELY REQUIRE THAT YOU BUILD A MULTI-LEVEL PARKING GARAGE IN ORDER TO MEET THE PARKING REQUIREMENTS.

THIS IS A VERY EXPENSIVE FORM OF DEVELOPMENT.

THE COST OF A PARKING SPACE AND GARAGE COSTS ABOUT 20 TO $40,000, AND THOSE COSTS ARE PASSED ON INTO HIGHER INTO HIGHER RENTS.

ON THE CLIMATE SIDE, THE CONCRETE AND PARKING STRUCTURES IS ONE OF THE MORE CARBON INTENSIVE BUILDING MATERIALS.

AND SO THERE'S HIGHER GHG EMISSIONS OF ASSOCIATED WITH THIS FORM OF DEVELOPMENT.

AND THERE HAS BEEN SOME RESEARCH THAT FOUND THAT THE HIGH AMOUNT OF ONSITE PARKING TENDS TO ACTUALLY ENCOURAGE PEOPLE TO OWN MORE VEHICLES AND DRIVE MORE FREQUENTLY.

AND SO THERE'S ALSO A NEXUS HERE WITH YOUR TRANSPORTATION RELATED GREENHOUSE GAS EMISSIONS.

SO IMPLICATION HERE IS NOT THE CITY NEEDS TO ELIMINATE ANY OF THEIR MINIMUM PARKING REQUIREMENTS.

WE JUST THINK THEY'RE SET AT A LEVEL THAT'S NOT CONSISTENT WITH ALLOWING SOME ENCOURAGING, SOME HIGH DENSITY HOUSING ESPECIALLY WHERE IT IS SERVED BY TRANSIT.

NEXT SLIDE. SO I MENTIONED THE HIGH CAPACITY HOUSING REGULATIONS THAT WERE PASSED IN 2021, I BELIEVE.

[02:50:05]

CONDITIONAL USE PERMIT IS A MAJOR SOURCE OF RISK FOR A DEVELOPER, INTRODUCES UNCERTAINTY ABOUT WHAT KINDS OF CONDITIONS MIGHT BE REQUIRED OR WHETHER THE PROJECT WOULD BE APPROVED.

AND THAT CAN ADD SIGNIFICANT COSTS TO THE DEVELOPMENT.

SEPARATELY FROM THAT, THERE'S ALSO SOME OTHER REGULATIONS IN THE HIGH-CAPACITY HOUSING STANDARDS THAT ADD SOME COMPLEXITY AND COSTS THAT WE THINK MAY BE UNNECESSARY. AND THERE ARE OTHER WAYS TO ACHIEVE SIMILAR ENDS.

NEXT SLIDE. SO TURNING NOW TO THE CITY'S INCENTIVE PROGRAM.

SO UNLIKE EVERYTHING WE'VE DISCUSSED SO FAR, THESE ARE VOLUNTARY PROGRAMS. AND SO IT'S REALLY IMPORTANT THAT THE INCENTIVES ARE ATTRACTIVE FOR A DEVELOPER TO USE.

OTHERWISE THEY WON'T BE USED IN OUR MODELING IS FOUND THAT PROJECTS THAT USE SPECIFICALLY THE AFFORDABLE HOUSING INCENTIVES WOULD GENERALLY BE LESS PROFITABLE THAN PROJECTS THAT DID NOT. DESPITE THAT, THE HIGHER DENSITIES THAT ARE ALLOWED BY THE INCENTIVES, AND SO THE COST OF PROVIDING THOSE AFFORDABLE UNITS OUTWEIGH THE BENEFITS. AND SO A HIGHER DENSITY BONUS MAY WORK.

BUT I THINK THIS IS SOMETHING WE'D LIKE TO EXAMINE FURTHER AND SEE IF THOSE INCENTIVES CAN KIND OF BE RECALIBRATED TO BE MORE ATTRACTIVE.

NEXT SLIDE. THEN THERE'S THE SUSTAINABILITY INCENTIVES, WHICH FACES SOME OF A SIMILAR ISSUE.

FOR A VARIETY OF REASONS, DEVELOPERS ARE SOMEWHAT HESITANT TO MEET SOME OF THOSE INCENTIVES, IN PARTICULAR, THE REQUIREMENT TO BUILD ALL ELECTRIC BUILDINGS.

AND THE CURRENT INCENTIVE PROVIDES A DENSITY BONUS OF 25%.

WE BELIEVE THAT MAY BE TOO LOW IN ORDER TO BE COMPELLING TO MOST PRIVATE DEVELOPERS.

AND THERE'S A REASON TO LOOK MORE CLOSELY AT THAT AND SEE IF THAT CAN BE MADE MORE ATTRACTIVE SO THAT MORE PROJECTS USE THOSE INCENTIVES.

NEXT SLIDE. SO JUST WRAPPING UP, WE WANT TO RECOGNIZE THAT THERE'S A NUMBER OF OTHER POLICY GOALS OUTSIDE OF HOUSING AND CLIMATE THAT THE CITY HAS THAT MAY BE IMPACTED IF SOME OF THESE REGULATIONS ARE CHANGED.

AND THOSE SPECIFIC POLICY GOALS ARE IDENTIFIED IN OUR REPORT.

AND AS WE COME BACK TO YOU WITH CONCEPTS AND SOLUTIONS AND RECOMMENDATIONS, WE WILL BE THINKING THROUGH, HOW DO WE RECONCILE SOME OF THESE OTHER TENSIONS WITH THINGS LIKE MANAGEMENT OF ON STREET PARKING AND RESOURCE PROTECTION COMMUNITY CHARACTER? THOSE WILL BE INTEGRATED INTO OUR THINKING IN THE NEXT STAGE OF THE PROCESS.

SO WITH THAT, I'LL SHIFT IT BACK OVER TO READ.

THANKS, DAMON. SO IN ADDITION TO ALL OF THE ZONING CODE, DEVELOPMENT CODE, SUBDIVISION CODE PROVISIONS THAT DAMON'S TEAM LOOKED THROUGH, DAL HAS DONE A REVIEW OF THE ENGINEERING AND TRANSPORTATION IMPACT STANDARDS AND FIRE ACCESS STANDARDS, AND I'LL BRIEFLY RUN THROUGH THAT BEFORE I HAND THINGS OVER TO MARK RAGGETT, WHO WILL TALK ABOUT THE BUILDING RELATED CODES.

NEXT SLIDE, PLEASE. SO ONE OF THE, ONE OF THE FIRST THINGS THAT WE DID IN CONDUCTING OUR ANALYSIS WAS WE CONVENED A DEVELOPMENT STAKEHOLDER TEAM OF ENGINEERS, ARCHITECTS, DEVELOPERS AND OTHERS INVOLVED IN THE DEVELOPMENT INDUSTRY LOCALLY AND GATHERED INFORMATION FROM THEM AND USED THAT AS A PART OF OUR RESEARCH.

AND SOME THINGS THAT CAME UP FROM THAT PROCESS WERE SOME CONCERNS ABOUT THE WATER AND SEWER IMPACT ANALYSIS PROCESS AND THE TRANSPORTATION IMPACT ANALYSIS PROCESS, AND THAT PERHAPS IN CERTAIN INSTANCES IN FOR EXAMPLE, THE CASE OF REZONES, THAT THE REQUIREMENT TO REALLY DRILL IN ON A DETAILED DEVELOPMENT PLAN AND SPEND A SIGNIFICANT AMOUNT OF COST ON, ON CONSULTANT FEES AND, AND WORKING THROUGH A DEVELOPMENT PROGRAM MIGHT BE PREMATURE IN THE DEVELOPMENT PROCESS, PARTICULARLY IF THE OUTCOME OF THAT REZONE REQUEST IS, IS UNCERTAIN.

AND SO THAT THAT WAS SOMETHING THAT WAS IDENTIFIED AS A AREA TO BE LOOKED AT WITH THIS NEXT ROUND OF, OF CONSIDERATION.

WE HEARD A NUMBER OF COMMENTS ABOUT A CONCERN THAT THERE'S AN OVERRELIANCE ON INDIVIDUAL PROJECTS TO FUND TRANSPORTATION INFRASTRUCTURE VERSUS MAYBE A PROCESS BY WHICH THERE'S A DEVELOPMENT PROGRAM THAT'S FUNDED THROUGH IMPACT FEES AND SOME DESIRE TO POTENTIALLY LOOK AT, AT A MODEL LIKE THAT.

WE ALSO HEARD SOME CONCERNS ABOUT IN CERTAIN INSTANCES WHERE THE CONTEXT WOULD WARRANT IT SHRINKING DOWN THE CROSS SECTIONS OF ROADS AND THAT THERE HAVE BEEN SOME CHALLENGES IN OBTAINING CITY APPROVALS FOR THOSE TYPES OF MODIFICATIONS.

NEXT SLIDE PLEASE. SO WITH THE WATER AND SEWER IMPACT ANALYSIS PROCESS, WHAT WE HEARD WAS THAT IT'S, YOU KNOW, A

[02:55:05]

THIS IS ALSO A LITTLE BIT MORE IN THE WEEDS, BUT OUR INFRASTRUCTURE, OUR OUR ENGINEERING TEAM IDENTIFIED THAT IN A COUPLE OF INSTANCES THAT THE WATER AND SEWER DEMAND METRICS IN THE CITY'S CODE ARE FROM 1980, MIGHT BE A LITTLE OVERLY CONSERVATIVE BASED ON ACTUAL USE, AND MIGHT WARRANT A CLOSER LOOK.

NEXT SLIDE, PLEASE. REGARDING TRANSPORTATION AND ACCESS, WE IDENTIFIED A HANDFUL OF ITEMS THAT THAT WARRANT SOME CONSIDERATION. A STREET.

CROSS SECTIONS ARE REQUIRED IN IN IN DIFFERENT INSTANCES THERE THERE ARE DIFFERENT CODES THAT APPLY.

AND SO IT CAN BE SOMEWHAT COMPLEX TO DETERMINE WHICH WHICH SECTION APPLIES.

AND SOMETIMES THEY CAN BE HIGHLY HIGHLY PRESCRIPTIVE WITH WITHOUT A LOT OF FLEXIBILITY TO MODIFY THROUGH THE THROUGH THE MODIFICATION PROCESS.

THE WINTER PARKING ORDINANCE IT BECAUSE THOSE PARKING STALLS THAT ARE REQUIRED IN THE STREET SECTION CAN'T BE RELIED UPON FOR A SIGNIFICANT PORTION OF THE YEAR.

IT REQUIRES WITH THE OFF STREET PARKING OR OFF STREET PARKING REQUIREMENTS, THAT DEVELOPMENTS PROVIDE MORE OFF STREET PARKING BECAUSE YOU CAN'T RELY ON THAT ON STREET PARKING. SO THAT'S SOMETHING THAT THAT WE'VE TALKED ABOUT, AND I THINK WE WANT TO LOOK AT A LITTLE BIT FURTHER, IS, IS THAT THE WINTER PARKING ORDINANCE AND THE IMPACTS ON POTENTIALLY DRIVING MORE OFF STREET PARKING AND MORE OF THAT ON SITE COST THAT JAMON WAS SPEAKING TO? THE THE CODES TEND TO LEAN TOWARDS A FAIRLY, FAIRLY SIGNIFICANT USE OF CUL DE SACS, WHICH CAN BE INEFFICIENT AND BE MORE LAND CONSUMPTIVE.

WE ALSO IDENTIFIED SOME INSTANCES WHERE SETBACKS ON ALLEYS ACTUALLY RESULT IN A LESS COMPACT URBAN FORM, AND MAYBE SOME OPPORTUNITIES TO TO CHANGE THOSE SETBACK REQUIREMENTS.

AND THEN LASTLY, THE THE DRIVEWAY STANDARDS FOR SOME MULTIFAMILY DEVELOPMENT ARE THE SAME AS COMMERCIAL DEVELOPMENT, WHICH MIGHT NOT BE MOST APPROPRIATE, PARTICULARLY IN SOME OF THE SMALLER 3 TO 4 UNIT PROJECTS, AND MIGHT WARRANT A CLOSER LOOK.

NEXT SLIDE, PLEASE. AND THEN LASTLY, AS I MENTIONED ON THE FIRST SLIDE, WHEN IT COMES TO THE TRANSPORTATION IMPACT ANALYSIS REQUIREMENTS THERE WERE SOME AT LEAST ANECDOTAL INFORMATION THAT WE HEARD FROM THE DEVELOPERS ABOUT SCALING BACK IN CERTAIN INSTANCES, THEIR PROJECTS TO AVOID THE TRAFFIC IMPACT ANALYSIS THRESHOLDS AND THEREFORE POTENTIALLY NOT TRIGGER OFF SITE IMPROVEMENTS, WHICH OBVIOUSLY IS NOT FURTHERING THE GOALS OF HOUSING PRODUCTION.

AND AND THEN ON THAT NOTE, THERE WAS A CONCERN ABOUT POTENTIAL EQUITY WHERE WITH THE IDEA THAT SOME OF THE LARGER PROJECTS ARE TRIGGERING THE TRAFFIC IMPACT ANALYZES AND TRIGGERING THE OFF SITE IMPROVEMENTS THAT THE SMALLER PROJECTS THAT AREN'T TRIGGERING THOSE SAME THRESHOLDS MAY BE AVOIDING THEIR RELATIVE SHARE OF OF WHAT THE THE TRANSPORTATION IMPROVEMENTS SHOULD BE.

AGAIN, SPEAKING TO THE POSSIBLE NOTION OF A OF A TRAFFIC IMPACT FEE PROGRAM, IN WHICH EACH UNIT WOULD PAY A PER UNIT FEE, THAT WOULD GO TOWARDS A OFF SITE COLLECTIVE INFRASTRUCTURE PLAN.

SO THOSE ARE THINGS THAT WE HEARD, THINGS THAT WE'LL BE LOOKING AT A LITTLE BIT FURTHER AS WE GET A LITTLE DEEPER IN THE PROCESS.

AND WITH THAT, I'LL HAND THINGS OVER TO MARK.

THANKS, REED AND MARK RAGGETT WITH GBD ARCHITECTS.

AND NEXT SLIDE, I THINK.

I DON'T THINK I HAVE TOO MANY.

I THINK THIS IS MY SLIDES.

SO JUST TO RUN THROUGH THIS AND THIS IS GOING TO BUILD ON WHAT YOU'VE ALREADY HEARD FROM JAIMAN AND REID.

BUT JUST QUICKLY ON SOME OF THE KEY FINDINGS.

THE FIRST ONE IS THAT THE BUILDING CODES ARE KIND OF SORT OF AT A LEVEL WHERE THEY'RE NOT REALLY CONTRIBUTING DRAMATICALLY TO THAT INCREASED CONSTRUCTION COSTS.

THEY'RE MUCH SORT OF BROADER, BIGGER FORCES THAT WORK THERE THAT ARE INCREASING COSTS AND REDUCING AFFORDABILITY, MOST NOTABLY JUST CURRENT LABOR SORT OF ISSUES AND REQUIREMENTS, SUPPLY CHAIN DISRUPTIONS, WHICH HAS SORT OF BEEN, YOU KNOW, CURRENT SET OF ISSUES, THE COST OF OF MATERIALS IN GENERAL, HIGHER FINANCING COSTS, JUST THE COST OF MONEY ITSELF AND FRANKLY, INCREASED DEMAND LIKE WE HEARD IN FLAGSTAFF.

SO ALL THOSE ALL THOSE FACTORS ARE SORT OF PUSHING THE COST OF CONSTRUCTION FOR AFFORDABLE HOUSING UP A LOT FASTER THAN THE BUILDING CODES THEMSELVES.

WE TOOK A LOOK AT ADAPTIVE REUSE, WHICH IS SORT OF A GREAT THING TO DO, TO KIND OF THINK ABOUT A MORE SUSTAINABLE DEVELOPMENT PATTERN.

[03:00:06]

SO THERE'S VERY, VERY SPECIFIC AND VERY LOCALIZED ISSUES WITH THAT.

IT'S VERY HARD TO MAKE A SORT OF BROAD GENERALIZATION ABOUT SORT OF ISSUES FOR AGAINST ADAPTIVE REUSE.

YOU KNOW, ONE ONE ADAPTIVE REUSE PROJECT CAN TRIGGER A WHOLE SORT OF HOST OF ISSUES RANGING FROM PARKING TO PLUMBING TO ELECTRICAL SYSTEMS TO MECHANICAL AIR MOVEMENT, ALL THOSE KINDS OF THINGS.

ON SUSTAINABILITY, I THINK YOU'VE ALREADY HEARD FROM JAMIE AND READ THAT ESPECIALLY THROUGH OUR DEVELOPMENT STAKEHOLDER SORT OF INTERVIEWS, THERE APPEARS TO BE SOME MISALIGNMENT BETWEEN SORT OF THE CITY GOALS AND ASPIRATIONS AND SORT OF WHAT HOW SUSTAINABILITY IS SEEN IN THE COMMUNITY.

MOST NOTABLY, IT'S SEEN AS SORT OF A NICE TO HAVE AND NOT A NEED TO HAVE.

IT ALSO APPEARS TO SORT OF I THINK THE PERCEPTIONS ADDS A LOT OF COST, WHICH AGAIN, COULD BE TRANSFERRED ON TO SORT OF A POTENTIAL HOME BUYER OR SORT OF A RENTER.

AND SO I THINK, I THINK THIS SORT OF KEY FINDING THERE IS THAT MORE, MORE EDUCATION SORT OF IS NEEDED TO GET OUT THERE AND SORT OF SORT OF ON THOSE DIFFERENT COSTS AND BENEFITS.

THE PROS AND CONS OF SUSTAINABLE STRATEGIES, CARBON NEUTRALITY.

AGAIN, I THINK THERE'S SORT OF A THE BIGGEST OR WINS THERE COULD BE THROUGH INCREASED REQUIREMENTS FOR ENERGY AND WATER USAGE.

SO AGAIN, REQUIREMENTS FOR HIGHER PERFORMANCE LIGHT FIXTURES, LUMINAIRES AS WELL AS LOOKING AT WATER FIXTURES AND LOW FLOW TOILETS, LOW FLOW SORT OF SHOWERHEADS, ETC..

DEFINITELY THINKING ABOUT SORT OF SOLAR READINESS AND THINKING ABOUT SOLAR FLAGSTAFF BEING ABLE TO TAKE ADVANTAGE OF THAT SUN AND THINKING ABOUT OPPORTUNITIES THERE.

SO REALLY FOCUSING ON RENEWABLE ENERGIES TO KIND OF MOVE THE NEEDLE IN TERMS OF CARBON NEUTRALITY.

AND FINALLY, I WOULD JUST SAY ON THE SUSTAINABLE INCENTIVES AND JAMIE DID A BETTER JOB IN MORE DETAIL OF TALKING ABOUT THIS.

THE INCENTIVES ARE NOT SORT OF ATTRACTIVE ENOUGH TO KIND OF OVERCOME THE FINANCIAL BARRIERS OF JUST BUILDING THAT SUSTAINABLE SYSTEM OR PUTTING IN INCREASED EV CHARGING, ETC.. SO THERE'S NOT ENOUGH.

YOU'RE NOT GETTING ENOUGH.

THE CARROT ISN'T SWEET ENOUGH TO SORT OF ATTRACT DEVELOPERS TO PUT PUT THE INFRASTRUCTURE IN, AS IT WERE, RIGHT NOW.

AND THAT MAY REQUIRE SORT OF A LARGER LOOK OUTSIDE OF FLAGSTAFF TO KIND OF THE STATE AND REGION AND COUNTY TO KIND OF SEE WHAT OPPORTUNITIES THERE MAY BE TO KIND OF GET MORE ALIGNMENT ON THESE, ON THOSE INCENTIVES AND MAKE THEM MORE ATTRACTIVE.

RIGHT. THAT MAY BE MY ONLY SLIDE.

THANK YOU ALL.

SO I'M GOING TO TAKE OVER FROM HERE.

AND SO IT'S NEXT STEPS.

BUT AS PART OF THAT I'M GOING TO TALK ABOUT KIND OF WHERE WE'VE BEEN.

AND WHEN WE STARTED THE ROADSHOW, THESE WERE KIND OF THE NEXT STEPS, BUT WE HAD OUR INTERNAL STEERING COMMITTEE ONE THAT JUST TALKED ABOUT THE LAND AVAILABILITY, SUITABILITY AND ANOTHER ON THE CO DIAGNOSIS.

WE MET WITH THE SUSTAINABILITY COMMISSION, HOUSING AND TRANSPORTATION COMMISSIONS.

WE HAD PLANNED ON BEING AT PLANNING AND ZONING LAST WEEK, BUT THE MEETING WAS CANCELED.

SO WE'LL BE THERE NEXT WEEK.

AND THEN WE'RE HERE TONIGHT.

SO RIGHT NOW THESE BOTH OF THESE REPORTS ARE IN DRAFT FORM.

WE'RE TAKING ALL THE FEEDBACK THAT WE GET AND REALLY WANTING TO UNDERSTAND, DID WE IDENTIFY THE BARRIERS THAT PEOPLE WHO REALLY ARE FOCUSED ON THESE FIELDS? IS THIS WHAT THEY'RE EXPERIENCING AS WELL? DID WE MISS ANYTHING? DID THEY HAVE ANYTHING TO ADD? SO WE'LL BE COLLECTING THAT FEEDBACK UNTIL MIDDLE OF NEXT WEEK, AND THEN WE'LL BE CONSOLIDATING ALL OF THAT INTO THE FINAL REPORTS.

AND THEN IT'S KIND OF LIKE WASH AND WASH AND RINSE AND REPEAT.

AND WE'LL BE BACK HERE KIND OF DOING THE SAME THE SAME OUTREACH AS WE MOVE FORWARD TO THE CODE CONCEPTS AND THEN THE CODE RECOMMENDATIONS.

ORIGINALLY, WE WERE GOING TO TRY TO GET TO COUNCIL WITH DRAFT CODE CONCEPTS PRIOR TO WHEN YOU WENT ON BREAK.

JUST HAVING THE CONVERSATION ABOUT ISSUES IN THE CODE WAS REALLY CHALLENGING AND WE HAVEN'T EVEN GOTTEN TO THE GOOD STUFF.

AND SO I THINK WE ARE STRATEGIZING ON A DIFFERENT TYPE OF UPDATE THAT WE CAN BRING YOU BEFORE YOU COME TO COUNCIL.

AND THEN I'M SORRY, BEFORE YOU GO ON BREAK, AND THEN WE'LL BE HERE WHEN YOU GET BACK FROM BREAK WITH THAT DRAFT CONCEPTS TO REALLY START TO GET YOUR FEEDBACK ON IS THIS ACCEPTABLE? ARE WE ADDRESSING THE RIGHT THINGS? AND THEN AGAIN, IT'S GOING TO BE AN ITERATIVE PROCESS WITH A LOT OF FEEDBACK FROM OUR OUR TECHNICAL ADVISORY BOARDS.

AND NOW THAT CONCLUDES OUR PRESENTATION AND OPEN TO ANY QUESTIONS.

THANK YOU. COUNCIL QUESTIONS.

COMMENTS. COUNCIL MEMBER HOUSE.

THANK YOU VERY MUCH FOR THIS PRESENTATION.

THIS WAS VERY INTERESTING TO ME, AND ESPECIALLY COMING FROM A BACKGROUND IN HOUSING, HEARING HOW THESE DIFFERENT CODES AND, AND ZONING IMPLICATIONS MIGHT IMPACT OUR GOALS WHEN IT COMES TO BOTH SUSTAINABILITY AND HOUSING IS VERY INTERESTING AND REINFORCES A LOT OF WHAT I THINK IS KNOWN AND ALSO GIVES US A DIFFERENT LENS INTO BETTER UNDERSTANDING SOME OF THOSE THINGS.

SO THIS WAS VERY HELPFUL ESPECIALLY IN TERMS OF THE DISCUSSION AROUND SINGLE FAMILY RESIDENTIAL ZONING.

[03:05:06]

SO REALLY APPRECIATE THAT.

THAT WAS HIGHLIGHTED ALONGSIDE THE CONVERSATION ABOUT DISPLACEMENT AND GENTRIFICATION.

I THINK THOSE ARE TWO REALLY IMPORTANT THINGS.

A COUPLE QUESTIONS THAT CAME UP FOR ME IN TERMS OF SUSTAINABILITY AND THAT CONVERSATION.

I'M WONDERING WHAT THOUGHTS ARE ABOUT HOW TO EDUCATE AND INCENTIVIZE SUSTAINABILITY IN EXISTING DEVELOPMENT, ALONGSIDE NEW DEVELOPMENT AND NEW OPPORTUNITIES THERE.

BECAUSE I THINK BACK TO THE POINT THAT WAS MADE ABOUT THE EQUITY FOCUS.

AND WHILE WE'RE SEEING THAT THERE'S NOT A LOT OF GOOD INCENTIVE FOR NEW DEVELOPERS TO INCLUDE SOME OF THOSE SUSTAINABLE ELEMENTS, I THINK THERE'S ALSO A MISSED OPPORTUNITY IN NOT SHOWING THE BENEFITS OF SOME OF THAT ADAPTATION AND AND BUILDING THAT INTO WHAT'S ALREADY WITHIN OUR COMMUNITY TO SHOW THE BENEFITS THERE TO ADOPTING SOME SUSTAINABILITY EFFORTS IN TERMS OF COST OF MANAGEMENT OR MAINTAINING THOSE BUILDINGS AND THINGS LIKE THAT.

SO ARE THERE THOUGHTS THAT YOU HAVE RIGHT NOW OR THAT WILL BE PART OF THE STUDY, MAYBE GOING INTO THE FUTURE THAT THAT FOCUS ON THAT SORT OF SHIFT? CONSULTANT TEAM.

I'M GOING TO LET YOU TAKE THE LEAD.

OH, YEAH, I CAN TAKE A STAB AT THAT.

YEAH. THANKS FOR THE QUESTION.

I THINK YOU KNOW, WHEN YOU THINK ABOUT A ELECTRIFICATION OF BUILDINGS, ENERGY EFFICIENCY UPGRADES AND THINGS LIKE THAT.

THE CODE IS A GOOD TOOL.

WHEN A PROJECT IS BEING PROPOSED.

RIGHT. SO IF A, IF THEY'RE COMING IN AND THEY'RE SAYING WE WANT TO DO THIS RENOVATION OR AN ADDITION OR WE'RE GOING TO DO REDEVELOPMENT, AND THEN AT THAT POINT THEY NEED TO MEET SOME CODE STANDARDS.

AND THE CITY HAS THE ABILITY TO PROVIDE SOME REGULATORY INCENTIVE. RIGHT.

SO TO SAY, WELL, IF YOU DO THIS AND THIS AND SUSTAINABILITY SENSE, THEN WE'LL, WE'LL ALLOW YOU TO BUILD A FEW MORE UNITS THAN WE WOULD OTHERWISE.

RIGHT. SO THERE'S A CARROT THERE AVAILABLE.

I THINK IN THE CASE OF AN EXISTING BUILDING AND TRYING TO SPUR THAT RENOVATION TO HAPPEN OR THAT IMPROVEMENT TO HAPPEN, THE CODES IS PROBABLY NOT A VERY GOOD TOOL FOR DOING THAT.

BECAUSE IT REALLY ISN'T TRIGGERED UNTIL SOMEONE ACTUALLY PROPOSES YOU KNOW, A PROJECT.

AND SO I THINK THERE ARE PLENTY OF OTHER TOOLS THAT ARE OUT THERE.

I DON'T THINK THAT WE'LL COVER THEM IN THIS PROJECT IN GIVE THEM THE DUE DILIGENCE THEY NEED OF WHAT TOOLS THE CITY ALREADY HAS AND WHAT CHANGES THEY MAY MAKE TO TRY TO MAKE THAT KIND OF SUSTAINABILITY IMPROVEMENT HAPPEN MORE WIDELY.

SO IT'S SOMETHING THAT I THINK IS, IS PROBABLY BETTER SUITED FOR THINKING ABOUT THINGS LIKE FINANCIAL INCENTIVES OR PROGRAMS OR I KNOW THAT THERE'S PLENTY OUT THERE IN TERMS OF LOW INTEREST LOAN PROGRAMS FOR SUSTAINABLE HOME RENOVATIONS.

SO, SO THOSE KIND OF THINGS ARE KIND OF OUTSIDE THE SCOPE OF OF THE DEVELOPMENT CODE.

THANK YOU FOR THAT.

AND THEN MY OTHER QUESTION WAS JUST AROUND.

IT WAS MENTIONED THAT YOU WERE ENGAGING WITH THE PRIMARILY.

IT SOUNDED LIKE SOME OF THE DEVELOPMENT OR DEVELOPER STAKEHOLDERS IN THIS PROCESS.

AND I'M WONDERING ABOUT OPPORTUNITIES THAT YOU'VE HAD OR MAY HAVE INTO THE FUTURE WITH ENGAGING WITH CURRENT OR EXISTING PROVIDERS AND IN PARTICULAR NEIGHBORHOOD ASSOCIATIONS THAT REALLY KIND OF HIGHLIGHT FOR YOU WHAT IS WHAT THE EXISTING BARRIERS ARE WITHIN SOME OF THE COMMUNITIES THEMSELVES, FROM THE PERSPECTIVE OF THE RESIDENTS AS WELL, AND SEEING HOW SOME OF THESE RECOMMENDATIONS MAY IMPACT THOSE NEIGHBORHOODS IN PARTICULAR.

YEAH, THAT'S A GREAT POINT.

I SHALL, UNLESS YOU WANTED TO TACKLE THAT.

I'M HAPPY. I'M HAPPY TO.

WE WE HAVE RENEE RED, WHO I THINK MIGHT BE IN THE AUDIENCE THERE.

[03:10:02]

RENEE. RED FROM BUILDING COMMUNITY FLAGSTAFF IS ON OUR TEAM, AND WE DO HAVE, AS A COMPONENT OF OUR WORK EFFORT A PUBLIC ENGAGEMENT PLAN THAT WILL DO EXACTLY THAT.

AND WE'RE ANTICIPATING THAT THAT WILL KICK OFF MID-SUMMER.

AS AS WE HAVE A LITTLE BIT MORE MEAT TO THE DIAGNOSIS AND BEGIN TO SORT OF CONCEPTUALIZE WHAT SOME OF THESE DIAGNOSTIC FINDINGS MIGHT, MIGHT MEAN.

SO WE DO PLAN TO DO EXACTLY THAT.

AND IT'S A I'M REALLY GLAD YOU SAID THAT AND BROUGHT THAT UP.

THANK YOU. ADDITIONAL QUESTIONS.

YES. COUNCIL MEMBER MCCARTHY.

WELL, THANK YOU, MAYOR.

THERE MAY BE SOME AREAS WHERE WE GET SOME PUSHBACK, AND WE NEED TO TAKE THAT WITH A GRAIN OF SALT.

JUST FOR INSTANCE, BUILDERS TEND TO BE MORE INTERESTED IN THE SHORT TERM GOAL OF HOW MUCH MONEY THEY MAKE AND HOW MUCH THE HOUSE CAN BE SOLD FOR.

BUT WE NEED TO ALSO TAKE INTO ACCOUNT THE LONG TERM.

COST OF OWNERSHIP OR OF RENTING THE HOUSE, SO TO SPEAK.

JUST A GOOD EXAMPLE WOULD BE THAT A BUILDER MIGHT SAY, WELL, I DON'T WANT TO PUT IN EXTRA INSULATION BECAUSE THAT COSTS ME $300 MORE.

WELL THAT'S TRUE, BUT IT CAN SIGNIFICANTLY DECREASE THE COST OF OWNERSHIP.

I'LL GIVE YOU AN EXAMPLE IN MY HOUSE WHEN I BUILD IT, AND SOME OF YOU HAVE HEARD THIS BEFORE, BUT I'LL SAY IT AGAIN.

WELL, THERE MUST BE, I THINK I DON'T THINK ANTHONY HAS HEARD THIS, BUT IT ONLY COSTS ME A COUPLE EXTRA HUNDRED DOLLARS TO INSULATE MY WALLS VERY WELL AND PUT A LITTLE EXTRA IN THE CEILING.

AND WHAT'S THE EFFECT OF THAT? MY HOUSE HAS NEVER BEEN HOT IN THE SUMMER, BECAUSE I OPENED A WINDOW AT THE EVENING AND CLOSED IT IN THE MORNING.

AND MY HOUSE IS LITERALLY NEVER BEEN HOT.

NOW, ALMOST ALL OF MY NEIGHBORS HAVE RETROFITTED THEIR HOUSES WITH REFRIGERATION UNITS, WHICH COST THOUSANDS OF DOLLARS.

THEN THEY HAVE TO OPERATE IT.

SO THE POINT IS, BY SPENDING A LITTLE BIT MORE DURING THE CONSTRUCTION, AN AWFUL LOT OF MONEY WOULD SAVE IN THE LONG RUN.

SO WE NEED TO TAKE INTO ACCOUNT LONG TERM GOALS AND SHORT TERM GOALS.

I TEND TO FOCUS ON LONG TERM GOALS.

I'LL LEAVE IT AT THAT. THANK YOU.

DO YOU WANT TO HEAR THAT AGAIN, MAYOR? THANK YOU. COUNCIL MEMBER.

VICE MAYOR. THANK YOU.

AND THANK YOU. COUNCIL MEMBER MCCARTHY I THINK MY COMMENTS PAIRED NICELY WITH YOURS, AND I DON'T BEGRUDGE YOU RETELLING THAT STORY OVER AND OVER AGAIN.

THERE ARE ALWAYS NEW PEOPLE THAT NEED TO HEAR IT, AND IT'S ALWAYS A RELEVANT PART OF THE CONVERSATION THAT SHOULD THAT WE SHOULD BE REMINDED OF.

I'M REALLY APPRECIATIVE OF THIS WHOLE PROCESS OF THE DISCUSSION WE'VE HAD TONIGHT SO FAR.

I WANT TO THANK OUR CONSULTANTS FOR BEING WITH US.

I THINK YOU BRING A LOT OF CLEARLY A LOT OF WISDOM, KNOWLEDGE AND GRAVITAS TO THIS.

I, I SEE THAT YOU ARE TAKING CARE OF THE MULTIFACETED SIDES OF THIS THIS.

GEOMETRIC SHAPE THAT WE'RE DEALING WITH HERE.

AND I REALLY DO APPRECIATE THAT.

I JUST, YOU KNOW I THINK I THINK WHAT I'LL SAY IS, IS I JUST WANT TO MAKE SURE THAT THROUGH THIS WHOLE PROCESS, WE DON'T END UP CHASING A BALL OUT INTO THE STREET.

I THINK THAT'S THE WAY I'D LIKE TO PUT IT.

WE WE CAN'T BE SO FOCUSED ON ONE THING THAT WE LOSE, THAT WE END UP GETTING SMACKED BY A SEMI TRUCK AS IT'S AS IT'S COMING UP THE LANE.

WE? LET'S SEE.

WHERE WAS I GOING WITH THAT? I DIDN'T EVEN LIKE MY OWN ANALOGY, SO I KIND OF WAS ADMONISHING MYSELF.

AND THEN I LOST TRACK OF YOU KNOW, OH, THAT'S WHAT I WAS GOING TO SAY.

A LOT OF THESE CODES CAME INTO EXISTENCE FOR A REASON.

AND MOST OF THOSE REASONS ARE GOOD REASONS.

AND SO THAT BALANCE AND THAT TENSION OF TRYING TO FIGURE OUT WHAT CAN WE TWEAK AND, AND NOT HAVE IT APPLY UNINTENDED CONSEQUENCES TO THE EQUATION IS GOING TO BE AN INTERESTING CONVERSATION.

I THINK IT'S A VALUABLE CONVERSATION.

I WILL TELL YOU ONE THING.

I THERE WERE SEVERAL TIMES DURING THE PRESENTATION THIS EVENING THAT I SAW CLEAR CANDIDATES FOR COMMON GROUND, WHERE WE COULD PROBABLY CLEAR SOME THINGS UP AND, AND REALLY CUT THROUGH SOME RED TAPE.

AND A LOT OF THAT STUFF MADE SENSE TO ME.

I THINK EACH OF US ARE GOING TO COME AT THIS WITH CERTAIN BLINDERS, AND WE JUST DON'T WANT TO BE CHASING THAT BALL OUT INTO THE STREET.

[03:15:05]

AND I HAVE FAITH THAT OUR CONSULTANCY IS, IS, HAS, HAS THE, THE OVERALL OBJECTIVES FOR THE, YOU KNOW, ALL OF THE GOALS WE'RE TRYING TO BALANCE IN MIND.

SO THANK YOU. THANK YOU.

VICE MAYOR. COUNCIL MEMBER.

HARRIS. SO I AM GOING TO TELL A STORY.

WHEN I BOUGHT MY FIRST HOUSE I HAD JUST ENOUGH MONEY FOR THE DOWN PAYMENT TO GET IN.

IF IT WAS A LITTLE BIT HIGHER, OR IF THERE WAS ANY OTHER THING THAT I HAD TO PAY, I WOULD NOT HAVE BEEN ABLE TO GET IN THAT HOUSE.

I WOULD HAVE PROBABLY HAD TO WAIT A COUPLE MORE YEARS.

SO ALL I'M SAYING IS THAT WHEN WE'RE LOOKING AT ALL OF THIS STUFF, WE HAVE TO MAKE SURE.

THAT WE ARE NOT KEEPING PEOPLE OUT OF HOMES.

EVERY TIME WE ADD SOMETHING TO A HOME, THAT COST GETS PASSED ON TO THE PERSON WHO'S BUYING IT BECAUSE THE DEVELOPER ISN'T GOING TO EAT THAT COST. AND SO THAT'S THE THING THAT WE HAVE TO BE CAREFUL ABOUT, IS THAT WHAT ARE WE REQUIRING? AND TO MAKE SURE THAT IT'S NOT KEEPING PEOPLE OUT OF HOMES? ALSO, THE OTHER THING IS THAT EVERYBODY DIDN'T WANT TO OWN A HOME.

A LOT OF PEOPLE WANT TO JUST RENT, AND SO ARE WE.

KEEPING PEOPLE OUT OF APARTMENTS BECAUSE WE'RE DEMANDING THAT DEVELOPERS DO THINGS THAT THOSE PEOPLE CAN'T AFFORD ANYWAY.

SO IF WE'RE REQUIRING YOU TO PUT CHARGING STATIONS IN APARTMENTS, AND THE PEOPLE WHO ARE LIVING IN LOW INCOME APARTMENTS CAN'T AFFORD AN ELECTRIC CAR, WHY ARE WE DOING THAT? SO WE HAVE TO BE SMART ABOUT WHAT WE'RE REQUIRING AND WHAT OUR CODES ARE DOING.

AND THEN IN TERMS OF COMMUNITY OUTREACH, THERE ARE ORGANIZATIONS IN THIS COMMUNITY WHO HAVE BEEN WORKING IN NEIGHBORHOODS FOR YEARS.

AND I WOULD ENCOURAGE YOU TO REACH OUT TO THOSE ORGANIZATIONS, BECAUSE SOMETIMES THE PEOPLE THAT YOU HIRE AS CONSULTANTS, THEY COME TO THOSE ORGANIZATIONS TO DO THE WORK. SO THAT JUST MIGHT BE SOMETHING YOU WANT TO CONSIDER.

AND I THINK THAT'S ALL I HAVE TO SAY.

THANK YOU. COUNCIL MEMBER.

I AM.

SO EXCITED TO EVEN SEE THIS.

MUCH OF WHAT YOU'VE BEEN WORKING ON, AND I THINK THAT YOU'RE ON THE RIGHT TRACK, AND I'M REALLY HAPPY ABOUT WHAT I'M SEEING.

I WAS JUST READING AN ARTICLE FROM THE ROCKY MOUNTAIN INSTITUTE ABOUT HOUSING, SO MY MY EARS PERKED UP.

WHEN YOU'RE TALKING ABOUT HOW DO WE MAKE IT MORE PALATABLE FOR DEVELOPERS TO BUILD MODESTLY PRICED HOUSING, MODESTLY SIZED HOUSING.

I THINK THAT THAT'S ONE OF THE KEY THINGS THAT I'M GOING TO BE LOOKING FOR IS HOW DO WE JUST MAKE THAT EASIER SO THAT MAYBE IT'S MORE OF A DEFAULT BECAUSE WE DEFINITELY NEED THAT MISSING MIDDLE HOUSING IN FLAGSTAFF.

AND I KNOW THAT A LOT OF US ARE CONCERNED THAT IF WE DON'T REALLY ADDRESS THESE CODES AND ADDRESS THE WAY THAT WE USE OUR VALUABLE LAND RESOURCES, THAT WE THAT ALL FUTURE DEVELOPMENT IS GOING TO BE LARGE HOUSES ON LARGE LOTS AND BE OUT OF THE REACH FOR PEOPLE WHO ARE LIVING AND ARE INVESTED IN THIS COMMUNITY.

SO THAT'S MUSIC TO MY EARS TO TO HEAR YOU TALK ABOUT THAT.

COUNCIL MEMBER SWEET.

THANK YOU. MAYOR.

I WAS IN A MEETING WITH A RESIDENT AND SHE ASKED, WHY ARE WE NOT BEING ABLE TO BUILD MODERATE SIZED HOMES? AND I WILL POINT HER TO THIS PRESENTATION.

I WANTED TO THANK YOU FOR DOING YOUR DUE DILIGENCE, AND I KNOW YOU WANTED TO GET THIS TO US BEFORE A BREAK, BUT I THINK IT'S AN IMPORTANT CONVERSATION, AND I THINK YOU DEFINITELY ARE ON THE RIGHT TRACK.

SO THANK YOU. ANY COUNCIL MEMBER MCCARTHY.

I MADE SOME SPECIFIC COMMENTS BEFORE.

I JUST WOULD LIKE TO SAY THAT I REALLY EXCITED ABOUT THIS PROCESS.

[03:20:03]

IT'S GREAT. THANK YOU.

AND NOT A LOT GETS COUNCIL MEMBER MCCARTHY LIKE GIDDY.

CITY MANAGER HAS A COMMENT.

THANKS. I DIDN'T WANT TO INTERRUPT THE FLOW OF CONVERSATION AT THE DAIS, BUT IF COUNCIL.

FINISHED WRAPPING UP, I JUST WANTED TO START WITH THANKING THE CONSULTANTS AND THE STAFF.

A LOT OF TEAM HERE THAT HAS BEEN WORKING ON THIS.

THE STAFF LEVEL, THE CONSULTANTS I HAD THE PLEASURE OF MEETING EARLY ON IN THIS PROCESS VIRTUALLY, AND IT SEEMS LIKE A LONG TIME AGO, IT'S OBVIOUS THAT A LOT OF WORK HAS BEEN PERFORMED SINCE THEN.

SO THANK YOU SO MUCH.

IT WAS A GREAT PRESENTATION.

I TYPICALLY DON'T WEIGH IN ON THESE POLICY DISCUSSIONS, BUT I WANT TO MAKE MENTION OF ONE THING.

I WAS EXCITED ABOUT ALL OF IT.

BUT ON THE RESOURCE PROTECTION, SOMETHING THAT TRULY RESONATES AND I THINK IS A VERY RELEVANT AND TIMELY TOPIC THESE DAYS.

AND AND THAT IS THE HEALTH OF OUR FORESTS.

IT JUST SEEMS THAT OUR CURRENT STANDARDS IN THE RPO DO NOT ADEQUATELY TAKE INTO ACCOUNT FOREST HEALTH IN SPECIFICALLY THE THINNING OF TREES AND AREAS THAT ARE VERY DENSE.

THAT COULD CERTAINLY BE TALKED ABOUT IN THE CONTEXT OF FIRE RISK.

AND IT SHOULD BE.

BUT MORE RECENTLY, ALSO WE'RE HEARING ABOUT IT WITH RESPECT TO INSURANCE HOMEOWNERS INSURANCE.

AND SO AS WE THINK ABOUT THINGS LIKE FIRE RISK, FOREST HEALTH, COST OF INSURANCE, I THINK ALL OF THESE THINGS REALLY DO LAY THE FOUNDATION FOR A REVISITING OF THAT PARTICULAR POLICY.

SO THANK YOU, MAYOR.

THANK YOU.

I THINK ANOTHER THOUGHT POPPED INTO MY HEAD IS THAT I'M SO GLAD THAT WE'RE FOCUSING ON LOOKING AT OUR PRIORITIES OF HOUSING AND SUSTAINABILITY AND AND CLIMATE ACTION, AND RECOGNIZING HOW THE GOALS FOR EACH ARE SO OFTEN IN CONCERT WITH EACH OTHER.

SO THAT'S THAT'S GOING TO BE AN IMPORTANT WAY TO DRAW THE PUBLIC INTO THE CONVERSATION, BECAUSE SO MANY PEOPLE HAVE ONE OR THE OTHER OF THOSE PRIORITIES.

A LOT OF US HAVE BOTH.

SO SEEING IT DISCUSSED IN THIS CONTEXT IS GRATIFYING TO SEE.

ALL RIGHT. I DON'T SEE ANY ADDITIONAL COMMENTS.

THANK YOU SO MUCH.

AND THANK YOU TO THE CONSULTANTS.

THANK YOU ALL. THANK YOU FOR YOUR WORDS OF WISDOM BY.

ALL RIGHT, MOVING DOWN TO ITEM NUMBER 11, FUTURE AGENDA ITEM REQUESTS.

[11. FUTURE AGENDA ITEM REQUESTS After discussion and upon agreement by three members of the Council, an item will be moved to a regularly-scheduled Council meeting.]

AND THEN WE NEED THREE COUNCIL MEMBERS.

SO TWO ADDITIONAL COUNCIL MEMBERS, IN ADDITION TO COUNCIL MEMBER MATTHEWS TO TO REQUEST THAT THIS MOVE FORWARD FOR A MORE IN-DEPTH DISCUSSION.

SO, COUNCIL MEMBER MATTHEWS.

THANK YOU. MAYOR.

YES. YOU KNOW, WHEN I WAS RUNNING FOR COUNCIL, I THINK WE ALL HAVE ASPIRATIONS TO BE THE VICE MAYOR, YOU KNOW, TO REACH THAT GOAL.

AND YOU KNOW, ONCE I WAS ELECTED, THE COMMON STATEMENT TO ME WAS, ARE YOU STILL DRINKING FROM THE FIRE HOSE? AND WE MOST CERTAINLY ARE.

THIS FIRST PART OF THE FIRST YEAR, IT'S JUST WE THINK WE KNOW OBSERVING FROM, YOU KNOW, THE AUDIENCE OR ONLINE AND STUFF.

BUT YOU KNOW, IT'S IMPORTANT, I THINK, TO HAVE SOME HISTORY AND SOME EXPERIENCE AND EXPERTISE IN THE THINGS THAT WE DO UP HERE.

AND I'M SO GLAD THAT IT WAS THE VICE MAYOR WHO BECAME VICE MAYOR.

BECAUSE HE SEASONED, YOU KNOW, IN THAT ROLE.

SO AND I TALKED TO COUNCIL MEMBER MCCARTHY ABOUT IT, AND HE SAID IT WASN'T NOT TOO LONG AGO THAT IT WAS THE PERSON WHO GOT THE

[03:25:01]

GIVEN YOU THAT EXPERIENCE IN SEASONALITY TO WHAT IT TAKES TO BE A GOOD REPRESENTATIVE REPRESENTATIVE OF OUR COMMUNITY, BECAUSE IT'S NOT JUST A, YOU KNOW, AN ACCOMPLISHMENT, A PRIDE THING.

IT'S IT'S ABOUT SERVING OUR COMMUNITY AND HAVING THE EXPERIENCE AND THE KNOWLEDGE THAT GOES ALONG WITH IT.

SO I WOULD JUST LIKE I DON'T KNOW WHAT THE SOLUTION IS, YOU KNOW, YOU TAKE FROM ONE AND THEN IT, YOU KNOW, MAYBE TAKES AWAY AN OPPORTUNITY FROM ANOTHER SIDE OF IT.

BUT I'D LIKE TO HAVE IT ON THE AGENDA BEFORE WE EVEN I DON'T THINK WE HAVE TO GO TO PRIMARIES NOW.

I DIDN'T KNOW THAT AT THE TIME, BUT JUST SO WE CAN REALLY PUT SOME THOUGHT INTO HOW WE WANT TO MAKE ANY CHANGES IF, IF THAT'S WHAT COMES OUT OF IT, JUST TO JUST TO GIVE US MORE PREPARATION, TO BE GOOD REPRESENTATION FOR OUR CITY AND HAVE SOMEONE THAT HAS THE EXPERIENCE BEHIND THEM.

BECAUSE THAT IS A BIG ROLE, THE VICE MAYOR, TO TO FILL IN FOR THE MAYOR.

AND, AND I THINK THAT IT IS SOMEONE THAT NEEDS, YOU KNOW, A LITTLE BIT OF TIME AND NOT DRINK FROM THE FIRE HOSE AND TAKE ON THAT RESPONSIBILITY. SO I'D LIKE TO PUT IT ON THE AGENDA JUST TO HAVE A MORE ROBUST CONVERSATION ABOUT THE PROS AND CONS AND SEE WHERE IT GOES FROM THERE.

THANK YOU. COUNCIL MEMBER COUNCIL MEMBER MCCARTHY.

MAYOR, IT'S JUST REALLY WHETHER OR NOT THERE TO TO SUPPORT MOVING IT FORWARD.

THE DISCUSSION ISN'T TONIGHT.

THANKS, BUT I SEE THAT COUNCIL MEMBER MCCARTHY HAS SOME COMMENTS THAT HE WOULD LIKE TO MAKE THAT HE'S PREPARED.

I WILL I WILL SAY THAT THIS WILL BE VERY SHORT.

ALL RIGHT. SO BEFORE COUNCIL ADOPTED THE CURRENT METHOD OF SELECTING THE VICE MAYOR, THE PROCEDURE WAS TO APPOINT THE PERSON WHO HAD RECEIVED THE MOST VOTES IN THE PRIOR ELECTION.

THAT IS, IN THE ELECTION TWO YEARS BEFORE.

I AM IN FAVOR OF SUCH A PROCEDURE BECAUSE IT IS A RASH, IT IS RATIONAL AND DOES NOT PIT COUNCIL MEMBERS AGAINST EACH OTHER IN A POPULARITY CONTEST. OKAY, HERE'S THE PART STERLING IS LOOKING FOR.

WITH THAT IN MIND, I SUPPORT MOVING THIS FAIR FORWARD.

AND THEN BRIEFLY, I'LL NOTE THAT I DO HAVE A LOT OF MORE THOUGHTS ABOUT THIS.

I'VE BEEN THINKING ABOUT THIS FOR LIKE FIVE YEARS, AND I'LL SAVE THOSE THOUGHTS FOR THE DISCUSSION ASSUMING THIS COMES BACK.

WHEW, THAT WASN'T TOO BAD, STERLING.

ALL RIGHT, SO WE NEED ONE MORE COUNCIL MEMBER TO SUPPORT MOVING THIS FORWARD.

JUST NEED A THUMBS UP.

ALL RIGHT, SO WE WILL GET IT ON A FUTURE AGENDA.

THANK YOU. COUNCIL MEMBER MATTHEWS.

SORRY, MAYOR. WHO WAS THE OTHER? THUMBS UP. OH, DEB.

OKAY. IT.

ALL RIGHT. SO MOVING DOWN TO OPEN CALL TO THE PUBLIC.

KEVIN CRITTENDEN OR CRITTENDEN? OKAY. WE THINK KEVIN LEFT.

STEPHEN ANTHONY YOUNG.

OKAY. HE LEFT AS WELL, AND I DON'T SEE ANY ONLINE COMMENT.

I AM CORRECT.

CORRECT. ALL RIGHT.

SO WE WILL MOVE DOWN TO INFORMATIONAL ITEMS TWO FROM MAYOR COUNCIL AND STAFF AND FUTURE AGENDA ITEM REQUESTS.

[13. INFORMATIONAL ITEMS TO/FROM MAYOR, COUNCIL, AND STAFF, AND FUTURE AGENDA ITEM REQUESTS]

THANK YOU, MAYOR. JUST A COUPLE ITEMS FOR ME.

THIS PAST WEEKEND WAS THE NORTHERN ARIZONA BOOK FESTIVAL, AND IT WAS ABSOLUTELY AMAZING TO GET TO PARTICIPATE IN SOME OF THOSE EVENTS.

DIDN'T GET OUT TO AS MANY AS I HOPED TO, BUT EVEN SOME THAT WERE ONLINE WERE JUST ABSOLUTELY AMAZING TO SEE THE LITERARY CULTURE THAT EXISTS WITHIN THIS COMMUNITY AND HAVE AN OPPORTUNITY TO CELEBRATE THAT.

I JUST WANTED TO GIVE THE REMINDER THAT OF A COUPLE OTHER COMMEMORATIONS AND CELEBRATIONS THAT ARE HAPPENING THIS MONTH.

THIS PAST WEEK ENDING TOMORROW WAS BLACK MATERNAL HEALTH WEEK.

APRIL IS ALSO AUTISM ACCEPTANCE MONTH.

AND MINORITY HEALTH MONTH.

AND I JUST THINK IT'S REALLY IMPORTANT FOR US TO TAKE OPPORTUNITIES TO HIGHLIGHT AND BRING AWARENESS TO THOSE THOSE TOPICS AND THE COMMUNITIES THAT ARE IMPACTED BY THEM AND NOT FORGET TO SHOW THAT RECOGNITION.

AND THEN FINALLY, I HAD THE OPPORTUNITY THIS AFTERNOON TO JOIN THE MAYOR AT A LISTENING SESSION WITH THE ARIZONA OFFICE OF TOURISM.

[03:30:06]

AGAIN. JUST A REALLY GREAT OPPORTUNITY TO BRAG ON FLAGSTAFF HERE.

THEIR VISION FOR REALLY BRANDING AND TELLING THE STORY OF THE STATE OVERALL AND JUST HAVING AN OPPORTUNITY TO TALK AND AND THINK REFLECTIVELY IN A GROUP ON THE FOR LACK OF A BETTER WORD, BECAUSE I CAN'T THINK OF A BETTER ONE THAN WHAT CAME OUT OF THE THE MEETING TODAY.

THE MAGIC OF A COMMUNITY LIKE FLAGSTAFF, WHERE SO MANY THINGS BECOME POSSIBLE JUST BECAUSE WE ARE A COMMUNITY OF DREAMERS AND A COMMUNITY OF INNOVATORS.

SO DEFINITELY, I'M LOOKING FORWARD TO SEEING SOME OF THE OUTCOMES FROM THAT LISTENING SESSION AND SEEING HOW WE CAN REINFORCE THAT VISION OF FLAGSTAFF FOR THE REST OF OUR COMMUNITY AS WELL.

THANK YOU. COUNCIL MEMBER SWEET.

I CAN'T TOP THAT.

NOTHING FOR ME.

COUNCIL MEMBER MCCARTHY.

NOTHING TONIGHT. MAYOR.

THANK YOU, VICE MAYOR.

YEAH. I YOU KNOW, I DON'T THINK THERE'S ANY BETTER TIME TO DO THIS, SO I WOULD LIKE TO JUST KIND OF RIP THE BAND AID OFF, AS IT WERE.

I WOULD LIKE TO ASK THAT WE EXPEDIATE THE FARE ITEM THAT WAS BROUGHT TO US BY THE COMMUNITY SEVERAL WEEKS AGO, AND THAT WAS FORWARDED THE PETITION AROUND THE CEASE FIRE.

AND WE NEED THREE COUNCIL MEMBERS, THREE ADDITIONAL COUNCIL MEMBERS TO SUPPORT THIS.

CORRECT? RIGHT.

WITHOUT ANY BACK AND FORTH THAT CAN COME FORWARD AT ANY TIME.

BUT WE WOULD NEED FOUR TOTAL.

SO THERE'S ONE WITH THE VICE MAYOR.

TWO. THREE AND I'LL GO FOR.

THANK YOU VERY MUCH, MAYOR.

THANK YOU EVERYBODY. THAT'S ALL I HAVE TONIGHT.

WE GOT IT. OH, GREAT.

COUNCIL MEMBER HARRIS.

OKAY, A COUPLE THINGS.

THIS WEEK I WAS I WAS ABLE TO ATTEND THE CONGRESS TO CAMPUS EVENT AT THE UNIVERSITY, AND I DIDN'T EVEN KNOW THEY DID THIS, BUT THEY SEND RETIRED CONGRESS PEOPLE TO UNIVERSITIES AND COLLEGES ALL OVER THE COUNTRY FOR THEM TO HAVE THESE OPEN TOWN HALLS.

AND SO TOM PETRIE, WHO IS A REPUBLICAN, AND KAREN ENGLISH, WHO IS A DEMOCRAT FROM FLAGSTAFF, WERE BOTH AT THE TOWN HALL. AND THE STUDENTS REALLY ENJOYED HAVING AN OPPORTUNITY TO TALK WITH THEM AND ASK THEM LOTS OF QUESTIONS.

AND SO THAT WAS A GOOD THING.

I MISSPOKE EARLIER WHEN I SAID PONDEROSA PARK, I MEANT BUSHMASTER PARK WITH ALL THE STUFF THAT'S GOING IN.

AND THEN THE AFFORDABLE HOUSING SUMMIT AT SOUTHSIDE COMMUNITY ASSOCIATION, ALONG WITH THE.

INSTITUTE ON LEADERSHIP AT FROM NORTHERN ARIZONA UNIVERSITY WILL BE PUTTING ON THE AFFORDABLE HOUSING SUMMIT.

AND THEN THE LAST THING IS MISS CLEO'S TEA PARTY IS A 29TH AND TICKETS ARE STILL AVAILABLE.

THANK YOU, COUNCILMEMBER MATTHEWS.

THANK YOU. I TOO WENT TO THE LISTENING EVENT, I GUESS THE EARLIER ONE WITH THE OFFICE OF TOURISM.

DIDN'T SEE YOU GUYS THERE.

SO YOU MUST HAVE BEEN IN THAT CROWD COMING IN AFTERWARDS.

BUT IT WAS VERY INFORMATIVE AND IT WAS GREAT TO HEAR EVERYONE'S WORDS AND INSIGHT ON WHAT THEY SEE ABOUT FLAGSTAFF AND WHAT WE THINK WE NEED TO DO BETTER. SO IT WAS A GREAT COMMUNITY EVENT.

I HAVE NOTHING.

CITY MANAGER. DO YOU HAVE ANY? CITY MANAGER. NO THANK YOU.

MAYOR. COUNCIL MEMBER.

WELL, WHEN COUNCIL MEMBER HARRIS MENTIONED CONGRESSMAN, I REMEMBERED THAT SUNDAY I WAS IN THIS ROOM AND THERE WERE TWO FORMER CONGRESSMEN KAREN ENGLISH AND TOM O'HALLORAN.

OH, WAS IT ANNE KIRKPATRICK? I'M SORRY. I'M SORRY.

NOT THINKING. AND THE MAYOR AND MISS SWEET WERE THERE ALSO.

ANYWAY, IT WAS A MEMORIAL SERVICE FOR OUR FORMER MAYOR PAUL BABBITT, WHICH WAS A VERY TOUCHING CEREMONY.

IT FILLED THIS ROOM, THAT ROOM AND THE LOBBY.

I'LL LEAVE IT AT THAT. AND I GUESS I DO HAVE SOMETHING TO SAY.

JUST WANT TO THANK MR. PAUL BABBITT JR FOR HIS ROLE IN MAKING CITY HALL A REALITY.

SO WITH THAT, WE ARE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.