On June 3^rd, Council reviewed possible options for the Road Repair and Street Safety Initiative.  The following summarizes the outcomes of the discussion:

• Council is supportive of recommending a sales tax increase to fund repairs to existing street infrastructure (including some sidewalks, curbs, ADA ramps, and bike lane restriping).
• Council is supportive of also recommending a sales tax increase to fund repairs to utilities infrastructure underlying roads that need to be completely rebuilt.
• Council is supportive of ensuring to the public that in addition to improving Flagstaff roads, the City will also commit resources to preserving the investment that improved the road condition. 
• Council is supportive of a 20 year term on the sales tax increase.
• Council will defer the decision regarding County revenue sharing idea to the County.
• Council is supportive of ongoing dialogue with Coconino County on their proposed sales tax increase.
• Council emphasized the need for clear and thoughtful messaging as it relates to the City’s sales tax initiative and potential County coordination.

As it relates to the above mentioned outcomes, Council directed staff to further explore project alternatives for Option #1 and Option #2 that address their identified priority of repairing existing infrastructure and support the Council’s desire for a reduced overall project cost and tax rate.  The following project alternatives will be presented for Council consideration:

• Repair roads below 70 OCI rather than all roads
• Fund ongoing preservation target at 50% for a portion of the sales tax term
• Issue debt on an as needed basis and for a portion of the project costs rather than all of project costs

 Attached to this staff summary is a breakdown of taxing options as it relates to revenue generation and debt service.  Detailed alternatives will be presented to Council at the June 10^th meeting. 
 
Other Relevant Information
 
The renewal of the existing Transportation Tax (expires in 2020) is the preferred opportunity to address community-wide congestion and other capital needs such as installing sidewalks, pedestrian crossings, bus pullouts and bike infrastructure. 
 
Vice Mayor Evans requested an explanation as to why the current options for a sales tax increase include $15M for utilities infrastructure replacement.  First and foremost, the City’s practice is to consider the condition of the underlying utility infrastructure when a road is being rebuilt, and replace it should it be needed.  Also, water, wastewater and stormwater infrastructure is replaced using the following criteria: age, material and condition of the pipes, history of failures and criticality of the infrastructure.  The condition of the road above the utility is not a criterion currently used in Utilities capital replacement program and therefore does not necessitate a priority for replacement.  Simply put, Utilities infrastructure priories are different than Streets priorities.  In fact, only six of the 48 segments of water and wastewater lines identified in need of replacement that also exist underneath roads with an OCI below 50 are currently funding in the Utilities Capital Improvement Program.