Others present: City Manager Greg Clifton; City Attorney Sterling Solomon.

Dawn Rodriguez addressed Council with concerns related to Museum Fire flooding.

Fire Chief Mark Gaillard presented Fire Station 1B Shift Crew with a Unit Commendation and Geordie Beck with a Citizen Heroism Award for their life saving efforts during an incident at a local athletic club.
 
Council expressed their gratitude to all those who were involved in the incident.

Mr. Clifton briefly reviewed his report.
 
Water Services Management Analyst Lisa Deem briefly reviewed the Water Services monthly report.
 
Sustainability Director Nicole Antonopoulos briefly reviewed the Sustainability monthly report.

Senior Deputy City Manager Shannon Anderson provided a PowerPoint presentation that covered the following:
 
AGENDA
CCHHS: COVID-19 WEEKLY CASES

CCHHS: HOSPITAL ADMISSIONS
CCHHS: COVID-19 RELATED DEATHS
CCHHS: COMMUNITY TRANSMISSION
CCHHS: COMMUNITY VACCINATION
CCHHS: VARIANTS
NAH: HOSPITAL CENSUS
 
Coordinator for Indigenous Initiatives Rose Toehe continued the presentation.
 
INDIGENOUS NATIONS DATA
NAVAJO NATION
HOPI TRIBE
 
Ms. Anderson concluded the presentation.
 
COUNCIL MEETING FORMAT
 
Council briefly discussed the decline in COVID cases and they gave direction to return to in-person meetings with a hybrid option to attend.

Mayor re-ordered the agenda and took Items 9A, B, C, and D before Item 8.
 
Vice Mayor Daggett reported that the 10-Year Housing Plan will be presented later in the agenda. She also reported that the Northern Arizona Municipal Water Association is working to track and weigh in on a number of bills related to water.
 
Councilmember Aslan reported that he helped chair a meeting for a new working group called the Rural Groundwater Working Group. It is people from around the state who are very concerned about the use of groundwater. The meeting focused on taking a deeper dive into bills that were introduced and the impacts they could have if passed.
 
Councilmember Salas reported that the State Transportation Board meeting is coming up later in the week. It is being hosted by MetroPlan and the City of Flagstaff.
 
Councilmember Shimoni reported that the CJCC Executive Committee met last week and discussed the hiring process for their new coordinator. They also discussed the felony case backlog and how to better function as a judicial system.
 
Councilmember Sweet reported that the Beautification and Public Art Commission has an open vacancy; she thanked Jeremy Slater for his service on the commission and is excited to see who applies and is appointed to the commission next. The commission discussed their 2023 work plan which included the airport, Aspen bike and ped niche downtown next to Pay and Take, the Fourth Street and Lockett Roundabout project and the Downtown Connection Center. She also reported that she will be attending the Mountain Line Board Meeting and the Water Commission meeting later in the week.

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Deputy Fire Chief Mark Wilson noted that Items 11A and 11B are administrative requests that allow the Fire Department to purchase equipment through cooperative purchase agreements. Much of the equipment supports the Fire Academy.

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Mayor Deasy opened the public hearing.
 
Senior Planner Genevieve Pearthree provided a PowerPoint presentation that covered the following:
 
MCMILLAN MESA NATURAL AREA CONCEPT ZONING MAP AMENDMENT
REQUEST OVERVIEW
PROPERTY LOCATION
HISTORY AND PURPOSE
ZONING MAP AMENDMENT DETAILS
TYPES OF ZONING MAP AMENDMENTS
CITIZEN PARTICIPATION
ZONING MAP AMENDMENT FINDINGS
FINDING FOR APPROVAL #1: FLAGSTAFF REGIONAL PLAN 2030
REGIONAL PLAN 2030 GOALS AND POLICIES THAT SUPPORT REZONING
REGIONAL PLAN 2030 GOALS AND POLICIES THAT DO NOT SUPPORT REZONING
MCMILLAN MESA VILLAGE SPECIFIC PLAN
FINDING #2: COMMUNITY BENEFIT
FINDING #3: ADEQUACY OF SITE
STAFF RECOMMENDATION
 
Tyler Denham addressed Council in support of the rezone. While he primarily advocates for urban density on housing affordability grounds, he also supports it because it frees up more land for community amenities such as the McMillan Mesa area.
 
Tyler Denham also submitted a written comment in support of the rezone.
 
Councilmember Salas asked if there are adequate staff resources to protect the area. Open Space Manager Robert Wallace stated that staff have been managing the property since the passing of Proposition 403 and they will continue to work with the Budget Team to increase the base budget to better manage all open space properties.
 
Council offered words of appreciation to staff for their work on the project and the management of the area.
 
There being no further comment, Mayor Deasy closed the public hearing.

Vote: 7 - 0 - Unanimously

A break was held from 4:46 p.m. through 5:01 p.m.

Mayor Deasy opened the public hearing.
 
Sustainability Manager Jenny Niemann provided a PowerPoint presentation that covered the following:
 
AMENDMENT TO ZONING CODE SECTION 10-30.070 RESIDENTIAL SUSTAINABLE BUILDING STANDARDS
RESIDENTIAL SUSTAINABLE BUILDING STANDARDS
CURRENT INCENTIVE
MOTIVATION FOR CHANGE
CITY’S PROPOSED ZONING CODE TEXT AMENDMENT
OVERVIEW OF PROPOSED AMENDMENT: PURPOSE 10-30.70.010
OVERVIEW OF PROPOSED AMENDMENT: DENSITY BONUS (SECTION 10-30.70.030)
OVERVIEW OF PROPOSED AMENDMENT: MINIMUM STANDARDS (SECTION 10-30.70.040)
OVERVIEW OF PROPOSED AMENDMENT: RESIDENTIAL SUSTAINABLE BUILDING AGREEMENT (SECTION 10-30.70.050)
OVERVIEW OF PROPOSED AMENDMENT: DEFINITIONS “E” (SECTION 10-80.20.050)
CARBON NEUTRALITY PLAN ALIGNMENT
 
Senior Planner Tiffany Antol continued the presentation.
 
STAFF RECOMMENDATION
 
The following individuals addressed Council concerning the proposed amendments to the Residential Building Standards:

• Mary Norton
• Tyler Denham

The following comments were received:

• Why would new sustainable building code standards give options to lower the energy efficiency ratings by deleting the high level of energy efficiency resulting from a HERS 50 rating?
• Some of the options are lower levels of energy efficiency than builders are already building at.
• Consider the ramifications of the generous twenty five percent density increase bonus that will be exempt from triggering high occupancy housing.
• This will lower guardrails that have already been put into place.
• Prop 207 waivers should not be allowed to be considered with this bonus.
• Concerned about what a development would look like after using the density bonus and double dipping with affordable housing incentives.
• The amendments are too loosely defined providing too many loopholes.
• The trade off of an electric building that might not be held to the highest standards of energy efficiency will not be well received.
• More work and detailing on sections two and three are needed before this moves forward.
• The density bonus should be more generous; greater urban density is more environmentally sustainable.
• If the size of the incentive is not balance to the cost, no one will use the incentive.
• If the 25% density bonus increases the parking requirement for the development, that would undercut the incentive for the density bonus due to cost.

Councilmember Aslan stated that periodically checking in on the incentive policy will be good to determine if it is working.
 
Vice Mayor Daggett asked about the impact to the High Occupancy Housing (HOH) policy. Ms. Antol stated that when the original incentive was developed it did not contemplate HOH. HOH sets density standards before a Conditional Use Permit and there are several areas where density limitations are set. The incentive bonus density is not applied to the maximum caps and it has been clarified that it will not count against a project in becoming an HOH if the incentive is used.
 
Vice Mayor Daggett asked if it would make sense to break out residential from multi-family projects for the incentive. Ms. Antol stated that to date, the only projects that have used the incentive are multi-family developments. Developers have a harder time using the bonus density with single-family residential. The hope is that it can change in the future and they are also looking at ways to potentially apply the incentive to commercial developments.
 
Councilmember McCarthy suggested a number of clerical revisions and provided staff a report that documented them.
 
Mayor Deasy asked the purpose for exempting gas fireplaces outside. Ms. Niemann stated that the outdoor fireplaces are generally in common and shared use areas and developers shared that it is an amenity that they would like to maintain. For those there is a certification based on non-significant emission output.
 
Mayor Deasy noted his support for more electric vehicle charging stations.
 
Councilmember Sweet stated that she would like to see the word “incentive” added to the title. She also stated that regular check ins will be crucial to make sure the incentive is having the desired effect and to tweak as needed. She asked if solar should be included within the incentive. Ms. Niemann stated that solar was not included because they are keeping with the original structure of the incentive. There are elements that will require solar to meet certain standards and this would allow for flexibility within the developments.
 
Councilmember McCarthy asked if there was anything in the incentive that would allow someone to use gas to heat a swimming pool. Ms. Niemann explained that right now it does allow other uses that do not result in a significant increase of carbon emissions. It would depend on the actual output and other options that might be available.
 
Vice Mayor Daggett stated that student housing was the impetus for the HOH plan and the public was concerned about the bedroom to bathroom ratios. She asked if a developer could build something considered student housing with the incentive with the bathroom to bedroom ratios. Ms. Antol stated that if a project under existing zoning allows for 50 units, the bonus would add 13 units and those would not go toward determining if a project is HOH, only the original 50 units. HOH could also be triggered if the development reaches a certain number of units or bedrooms per acre.
 
Vice Mayor Daggett asked if the policy had been considered by the Housing and Sustainability Commissions. Ms. Antol stated that the Sustainability Commission reviewed and voted unanimously in favor, the policy was not presented to the Housing Commission.
 
Mayor Deasy asked about enforcement and follow-up on the obligations. Ms. Niemann stated that the developer will be required to file reports on how they are complying and staff will then verify internally at each stage of the development review process. Enforcement expectations and penalties will be included in the development agreement. Ms. Antol stated that a permit tracking system is in place to track all the requirements of development agreements. There is also the zoning code enforcement process where charges and fines can be brought against a developer for lack of compliance.
 
Council agreed to increasing the number of additional electric vehicle charging stations.
 
There being no further comments, Mayor Deasy closed the public hearing.

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

City and County Library Director Jared Tolman provided a PowerPoint presentation that covered the following:
 
CITY OF TUSAYAN AND CITY OF FLAGSTAFF LIBRARY SERVICE IGA

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Management Services Director Rick Tadder addressed Council stating that the resolution is required to authorize the submittal of a loan application to the Water Infrastructure Finance Authority (WIFA) of Arizona. The city is requesting a loan from the Clean Water State Revolving Fund to support our Stormwater Fund for an amount not to exceed $20 Million. This will primarily fund work related to the Rio de Flag project. The resolution does not authorize the final issuing of the loan, just the application, and staff will return in the coming months to seek Council approval of an Ordinance to authorize the debt with WIFA of Arizona.

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

City Attorney Sterling Solomon addressed Council stating that the resolution would adopt amendments to the Enforcement Response Plan. Currently, backflow device tests are required yearly however, there is no requirement to provide the test data back to the city to ensure the proper testing has been done. The amendments will require the testers to submit data to the city within five days of the test. There are a few other minor amendments that are primarily house keeping and clarifications.

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Real Estate Manager Bryce Doty provided a PowerPoint presentation that covered the following:
 
LEASE OPTION AGREEMENT ON 1700 E SIXTH AVE
VICINITY MAP
OPTION TO LEASE
SITE PLAN APPROVAL
 
The following individuals addressed Council with comments about the contract:

• Devonna McLaughlin
• Deb Harris
• Khara House
• Maria D. Castillo-Rincon

The following comments were received:

• Affordable units are desperately needed in the community.
• There are concerns about placing more housing of this type in the Sunnyside area.
• Affordable housing and work force housing need to be integrated and spread across all parts of the city.
• Council needs to commit to diverse housing types throughout the city.
• This is the least controversial piece of land the city has available now, so move forward.
• This will help 11 families right now.

Written comments in support of the contract were submitted by the following:

• Sandi Flores
• Maria De Los Angeles Castillo-Rincon
• Missy Ivey
• Rory Pedersen

Councilmember McCarthy noted his agreement with some of the speakers that affordable housing is needed throughout the entire city. He stated that there is a group ready and willing to bring the project forward and he is in full support.
 
Vice Mayor Daggett asked staff to speak to the concerns expressed about the location of the project. Housing Director Sarah Darr stated that the goal has always been to make sure housing is spread out across the community. The parcel being discussed was specifically purchased more than 20 years ago for the purpose of affordable housing. Staff is working to develop housing further east at Fanning and Lockett, the piece out by Shultz Pass, and they have been in pursuit of other land in the community.
 
Vice Mayor Daggett suggested that staff provide an update at a later meeting about what steps are being taken to include affordable housing in all areas of the community.

Vote: 7 - 0 - Unanimously

A break was held from 7:05 p.m. through 7:20 p.m.

Housing Project Manager Leah Bloom and Housing Director Sarah Darr provided a PowerPoint presentation that covered the following:
 
10-YEAR HOUSING PLAN
TOPICS OF DISCUSSION
HOUSING EMERGENCY DECLARATION
HOUSING IS INTERCONNECTED
FLAGSTAFF’S HOUSING SURVEY
PUBLIC PARTICIPATION FROM THE BEGINNING
INCLUSIVE PUBLIC PARTICIPATION
COMPLETE PUBLIC PARTICIPATION
LOCAL DATA
WHAT CAN FLAGSTAFF FAMILIES AFFORD?
FLAGSTAFF’S HOUSING SURVEY
TOTAL HOUSING NEED
BASIC HOUSING CONTINUUM
GOAL
POLICY INITIATIVES & STRATEGIES
CREATE
CONNECT
PRESERVE
PROTECT
WRITTEN COMMENTS
PUBLIC COMMENT TOPICS
LANGUAGE AND CONTENT UPDATES
NEW SECTIONS ADDED INTO FINAL PLAN
IMPLEMENTATION
CONSIDERATION OF APPROVAL
 
Councilmember Shimoni expressed excitement about the plan. He stated that there was no mention of transitional housing in the plan, he asked if that is something that could be included. Ms. Darr stated that no specific housing type is called out in the plan, it is a greater goal of housing collectively. This was done purposefully because they did not want to omit something or hinder the imagination of what might be possible in the future.
 
Councilmember Aslan stated that this is a good plan and he is very ready to move it forward. He stated that the city cannot build its way into housing affordability and he feels that those issues are addressed in the plan. There is a lot of talk about keeping people in Flagstaff but there will continue to be growth and it is important to focus on the equity for people to move into town. It is both a social and environmental justice concern.
 
The following individuals addressed Council in support of the 10-Year Housing Plan:

• Brendan O’Brien
• Devonna McLaughlin
• Tyler Denham
• Khara House
• Michele James
• Ross Schafer-Altenbaugh
• Heather Marcy

The following comments were received:

• The plan is wide ranging and good at diagnosing why the issues of housing exist.
• The plan should identify ways to respond to changing legislation regarding short term rentals or taxes on second homes.
• The work of the Housing Commission and staff is greatly appreciated.
• Housing is desperately needed in Flagstaff.
• The next step is to enact the plan and keep it moving forward by supporting the policies.
• Please support the plan and its adoption.
• The plan is a good step forward in identifying actionable items to move the city forward.
• The situation is critical and the time to act is now.
• This will be a living document that will grow and change as the community needs.
• As the gap between increasing housing costs and stagnant wages widens, more will become homeless.
• Supportive of the recommended ballot measure for a housing bond.
• The plan focuses on serving a broad ranges of income levels.
• The issues outlined in the narrative of the plan are not yet linked to a specific strategy or initiative; suggest linking that text directly to the policy initiatives and strategies tables throughout the plan.
• The strategies in the plan are interrelated and connected and prioritization of implementation and planned strategies is important to ensure timely implementation.
• The Council needs to clarify how they will ensure implementation of the plan’s initiatives and strategies.
• Appreciate the stringent annual evaluation and reporting elements are included within the plan.

Written comments in support of the 10-Year Housing Plan were submitted by the following:

• Melinda Deboer-Ayrey
• Dan and Jessica Kitterman
• Heather Marcy
• Jason Kordosky

Council expressed their appreciation for the community, Housing Commission, and staff for all the work that went into developing the plan.
 
Councilmember McCarthy indicated that there are parts of the plan that he does not like and other parts that are wonderful. He would not support increasing sales taxes to support the initiatives of the plan and he is concerned about taking industrial land for housing. He expressed support for encouraging accessory dwelling units and pre-approved plans.
 
Councilmember Salas stated that she would like to have frequent updates on the plan. Ms. Darr stated that the intention is to have regular updates to the Housing Commission on progress and sharing those updates with Council as well. She indicated that a formal, fully published report will be provided annually.
 
Councilmember Sweet offered that she would like to see continued efforts to collaborate with community partners. There is so much that is being done within the community and reporting on all those efforts will be helpful in moving the plan forward.
 
Vice Mayor Daggett stated that she would like to see an effort to bring Housing to the leadership table so they can be involved in all community discussions.

Vote: 7 - 0 - Unanimously

Vote: 7 - 0 - Unanimously

Mayor Deasy stated that there are many elderly people who own their homes who are close to going into assistive living but not there yet and could benefit from having a community member live with them and provide them with varying levels of support such as housekeeping, yard, work, shopping, transportation, and the like in exchange for rent. It could be a great way to connect housing resources to those who need it.
 
Councilmember Aslan stated that he appreciates the idea but would like more information about liability issues and who would manage the program.
 
Councilmember Shimoni stated that he is concerned about the workload on staff to develop, implement, and manage such a plan. This may be a project more appropriately administered by a community non-profit agency.
 
The requisite number of Councilmembers supported moving the item forward to a future agenda for discussion.

Vice Mayor Daggett stated that she would like for the Council to discuss a possible ordinance that would protect renters from income source discrimination. She would like to understand the legalities associated with such an ordinance.
 
The requisite number of Councilmembers supported moving the item forward to a future agenda for discussion.

Councilmember Sweet reminded the Council and public about the I Heart Pluto events that are happening all week. She also stated that she would be attending A Night of Discovery at the Orpheum as well as the Athena Awards. She offered congratulations to all those who were nominated for the Athena Award.
 
Councilmember Shimoni reported that the Mountain Line Board meeting will be happening on Wednesday and can be viewed on their YouTube live stream.
 
Councilmember Salas reported that she would be participating in some of the I Heart Pluto events. She also noted that Arizona Beer Week is coming up the next week.
 
Councilmember McCarthy reported that the Arizona State Transportation Board will be meeting in Flagstaff on Friday.
 
Vice Mayor Daggett stated that there are a number of events happening around town for Black History Month. The Lived Black Experience has a lot of great discussions coming up and she encouraged everyone to search Black History Month NAU to see the different events coming up on campus.
 
Mayor Deasy also mentioned the I Heart Pluto events, the Athena Awards, and the ADOT Board Meeting. He noted that he is looking forward to discussion with policy makers, services providers, and recipients of mental health services.