Mayor Nabours said that the presentations tonight were to allow the Council to hear from the various service organizations on how their contracts with the City are working and what they have been doing. It was not to discuss any funding issues; those would need to be brought forward during the budget meetings next week.

The following organizations then provided an update on their respective group, as outlined in the PowerPoint presentation, attached hereto as Exhibit A:

• Science Foundation of Arizona
• Victim Witness
• Greater Flagstaff Forests Partnership
• The Guidance Center Alcohol Stabilization Unit (ASU)
• Coconino Humane Society
• Coconino Coalition for Children and Youth (CCC&Y)
• Northern Arizona Center Against Sexual Assault (NACASA)
• Family and Community Teaming for Students (FACTS)
• United Way of Northern Arizona

Housing and Grants Administrator Leah Bloom said that on an annual basis, the City of Flagstaff receives CDBG funds from the US Department of Housing and Urban Development (HUD). CDBG funds must be used for the development of viable urban communities through the provision of: decent housing, a suitable living environment or economic opportunity, principally for low and moderate income persons. In addition, City Council has also established the following CDBG funding priorities: housing, homelessness, neighborhood revitalization and seriously mentally ill /serial inebriate populations.  Staff conducted the proposal process and was at the meeting to present their recommendations for the use of 15/16 CDBG funding. She then gave a PowerPoint presentation which addressed:

CDBG OVERVIEW
COUNCIL DIRECTION AND STAFF RESPONSIBILITIES
PRIORITIES
            Housing
            Homelessness
            Neighborhood Revitalization
            Mentally ill and/or Serial Inebriate Population
PUBLIC PARTICIPATION PROCESS
UPCOMING
5-YEAR PLAN DUE MAY 2016
EXAMPLES 
HOW MUCH ARE WE TALKING ABOUT?
DISTRIBUTION ALLOWED BY HUD       
$ EACH CATEGORY
PUBLIC SERVICE PROPOSALS
HOUSING PROPOSALS    
PUBLIC SERVICE RECOMMENDATIONS
HOUSING ACTIVITIES
RECOMMENDATIONS
NEXT STEPS

Councilmember Evans thanked staff for the presentation. She said that she had a major issue with the Public Service item. She said that homelessness is a major issue, but preventing it is also. The fact that they were not funding the Housing Stabilization Program was a big concern to her.

Deputy Housing Director Sarah Darr said that she agreed. She said that this was the first time the County has applied in the last three years. Staff's position was they needed to hold a competitive ranking, as they have done in the past. She said that she did not sit on that personally and had asked the same question. She said that the County's application left one ten-point question unanswered which made a big difference.

Councilmember Evans said that she was not suggesting that they "unfund" the other items, but she asked if they could use the $12,000 leftover funds for this program.

Mayor Nabours asked if this grant brought any strings with it to where they have to spread any of the money between the City and County. Ms. Darr said that the funding is eligible for other governmental entities and nonprofits. It has been the process to hold a competitive process. Because of the cap in public service, there are two separate categories and the funds cannot flow between one and the other. She said that the State Department of Housing has made the City ineligible for HOME funds because they receive CDBG funds and the City is not large enough to be their own HOME agency.

Mayor Nabours said that a few months ago they had a contract to consider where the City provided administrative services to the County and asked what that was for. Ms. Darr said that it was to administer on the County's behalf for their housing program, because the City has a staff person and the County has program without a staff person.

Councilmember Overton said that he was disappointed to see they were at the cap for administrative fees. Ms. Darr said that before the City instituted the indirect cost plan, they stayed around 12-13% and without that plan they would still be there. She said that they work to keep those costs down. She said that there has been some indication in a conversation that this number may go up. Councilmember Overton said that he knew they worked hard to keep those costs down, but it was hard to see $157,000 go to administration, although he realized it was justified.

Councilmember Putzova asked if they had other proposals that did not turn into full ones. Ms. Darr said that they did meet with two agencies that came in for technical assistance that decided not to apply. She said that one agency went a different direction and the other received a few dollars. She said that one activity was not CDBG eligible and they try to cut people off at the pass if they do not fit the eligibility.

Ms. Darr said that in the past three years staff has been in front of Council at this point in the process, not sure of what amount they would be receiving. She said that this year it is a definite $579,000.

Further discussion was held on the remaining $12,000. Vice Mayor Barotz and Councilmember Evans said that they would like to see the $12,000 go the Housing Stabilization Program. Four members of Council agreed that they would stay with staff's recommendation. Ms. Darr said that staff would prepare the resolution and bring it back for consideration at the May 5, 2015, Council meeting.
 

 

Revenue Director Andy Wagemaker said that the Arizona Department of Revenue assumes all Transaction Privilege (Sales) Tax, or TPT, licensing on January 1, 2016. This TPT simplification process has provided an opportunity to simplify and streamline other City licensing codes.
 
He said that currently the TPT is required for any taxpayer that falls under the jurisdiction of the Model City Tax Code. It applies to in-city and out-of-city businesses. He said that there are approximately 6,000 accounts and one is required for each business location. He said that currently this is a permanent license.
 
The Occupational Business License (OBL) is required for any business that falls under the jurisdiction of the City’s Occupational Business License Code. It applies to in-city businesses only and there are approximately 1,800 of these accounts. He said that one is required for each business location and for each person as defined by code. An example of this is that each attorney in an attorney’s office needs an OBL and this is an annual renewal.
 
Mr. Wagemaker said that with this change in 2016, the City will lose the ability to enforce compliance with other City codes such as zoning, fire, building safety and the one-time $46 fee will now be annual.
 
Councilmember Oravits asked if they will be able to renew the annual fee online. Mr. Wagemaker said that he did not know the answer to that question since it was being taken over by the State.
 
He said that staff is proposing that they rename the OBL to Business License and also remove the one OBL per person requirement. He said that it would be a license subject to yearly renewal and includes businesses that currently may not have an OBL. They would be able to apply this to compliance with other city codes as a condition of issuance.
 
He said that this change would also allow for the same exemptions currently in place and would incorporate the peddler and solicitor requirements, eliminating the need for the peddler and solicitor ordinance. It would also incorporate certain temporary use permits and special events permit requirements. They would continue with the same fee ($20) until a user fee study is completed.
 
Mr. Wagemaker said that if staff gets head nods to move forward staff will make presentations to various groups in town and the ultimate goal would be to come back in the fall for another presentation and possible adoption, with a start date of January 1, 2016.
 
Councilmember Brewster asked what would occur if a retail business that has been here for a long time had met the zoning codes at that time, but now they do not and would need this new business license. Mr. Wagemaker said that was a great question and he would need to follow up with the Community Development department. He said that he does not see them trying to catch businesses that way, but he would need to get an answer for that question.
 
Councilmember Overton asked at what point the State becomes a resource to staff and the community, as taxpayers go to make a filing in 2016 seamless. Mr. Wagemaker said that unfortunately it has not been very well coordinated to date. He said that the State has been direct; staff can help taxpayers with filings, etc. but they cannot answer taxpayer questions.
 
Mayor Nabours said, for clarification, that every business in town right now should have either a TPT or BL. With what staff is proposing sales tax will be handled by the State and everyone in Flagstaff should have a business license. Mr. Wagemaker said that was correct. Staff was asking for Council’s support in moving in this direction.
 
Consensus of Council was to move forward; however, Councilmember Oravits said that he was not there yet and wanted to see the outreach reactions.

Councilmember Putzova said that she would like to request a possible future agenda item for the City joining the lawsuit against the State.

Vice Mayor Barotz reported that she and the Mayor, along with Mr. Meilbeck and Mr. Copley, and others, met with General Toy with the Corps of Engineers and talked for one and one-half hours. She thought it was one of the most productive meetings and feels cautiously optimistic.

Vice Mayor Barotz reported that today was Equal Pay Day, and it was selected each year by the National Commission on Pay Equity to show how much longer a woman must work to receive the same as a man. Her hope is to get a CCR from staff that shows the City does not have such a pay gap.

Mr. Meilbeck reported that Stephanie Smith was at a Transforming Local Government conference in Phoenix and was presenting with the author of Extreme Government Makeover.

Mayor Nabours reminded everyone that next week there was no Work Session, but the budget session would be starting at noon on Tuesday, and noted there was the roundtable discussion this coming Friday. Vice Mayor Barotz requested that the setup for the roundtable be done in such a way that Councilmembers do not have their backs to the public.

The Work Session of the Flagstaff City Council held April 14, 2015, adjourned at 6:58 p.m.