Moved by Councilmember Scott Overton, seconded by Councilmember Coral Evans to approve the minutes of the City Council Work Session of July 14, 2015; Special Work Session of July 16, 2015; and Regular Meeting of July 21, 2015.

Vote: 7 - 0 - Unanimously

The following individuals address the City Council regarding issues indicated:

♦Aidan Barry and Peter Burger, Pine Canyon, presented a check in the amount of $922,099.30 for their transportation funds.
♦Bill Gonzalez regarding a vision he had of a Love Conference Center to be located on McMillan Mesa.
♦Joseph Bullis, Whyld Ass, regarding their attempt to work with the City to provide music at their venue within the noise ordinance regulations of the City.
♦Sagemaya Dandi regarding the need for more bus routes to downtown with NAIPTA.
♦Ladd Vagen and Kim Ott regarding the City's new high definition streaming system for Council meetings which includes a scrolling calendar when meetings are not in session.

Mayor Nabours noted that there were actually three vacancies, but they currently only had two applications on filed. He encouraged members of the community to consider applying for this Board.

Moved by Vice Mayor Celia Barotz, seconded by Mayor Jerry Nabours to appoint Pat Loven and Greg Parker to the Board of Adjustment with terms expiring May 2018.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Eva Putzova, seconded by Councilmember Karla Brewster to appoint Ardis Easton and Brett Caldwell to the Parks and Recreation Commission, terms expiring August 2018.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Karla Brewster, seconded by Councilmember Scott Overton to appoint Eli Chamberlain and Jeremy Krones to the Sustainability Commission, terms expiring October 2016.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Karla Brewster, seconded by Councilmember Scott Overton 
to appoint John Kistler to the Sustainability Commission, term expiring October 2017.

Vote: 7 - 0 - Unanimously

Mayor Nabours noted that Community Development, Sales Tax and Police all found no issue with the application. He then opened the Public Hearing. There being no public input, the Public Hearing was closed.

Moved by Councilmember Jeff Oravits, seconded by Councilmember Karla Brewster to forward a recommendation to the State for approval of the liquor license application submitted by La Santisima Gourmet Taco Shop at 119 S. San Francisco.

Vote: 7 - 0 - Unanimously

Mayor Nabours removed Item 9-B from the Consent Agenda.

Moved by Mayor Jerry Nabours, seconded by Councilmember Karla Brewster to approve Consent Agenda Items 9-A and 9-C.

Vote: 7 - 0 - Unanimously

Moved by Mayor Jerry Nabours, seconded by Councilmember Coral Evans to reluctantly accept the resignation of Jeff Meilbeck as Interim City Manager, effective at the end of the Council Meeting of August 25, 2015.

Vote: 7 - 0 - Unanimously

Mayor Nabours then presented Mr. Meilbeck with a token of appreciation, noting that he was asked by Council to fill in to that position and he had graciously accepted it. He left his position at NAIPTA with their gracious approval and has served the City extremely well. He has done more than tread water for the past eight moths; he has advanced all of the City programs and he was very much appreciated.

Deputy City Manager Copley then presented Mr. Meilbeck with a framed picture, and said that on behalf of the City employees they appreciated him and his leadership. He said that Mr. Meilbeck's connection with the community and his deep understanding of the challenges helped him to hit the ground running and his leadership and fingerprint on the City, even in eight months, is exceeding what other city managers would have accomplished in a number of years.

Councilmember Evans said that she truly appreciated the opportunity to get to know him and she wished him the best in returning to NAIPTA.

Councilmember Brewster said that she has known Mr. Meilbeck for quite awhile, having been on the NAIPTA Board twice. She said that she fully expected it to be the way it was. He stepped in with not much notice and has been able to move the City forward in their goals and objectives. He carried forth his effort in his same objective manner in dealing with issues and people.

Vice Mayor Barotz said that she has also known him for many years, having served on the NAIPTA Board as well, and she tried to tell him that the City was a different animal. She thought that he had done a terrific job and appreciated his calmness and level-headed approach. In his eight months with the City he moved many important issues forward.

Councilmember Oravits echoed the comments, stating he has done an excellent job, leaving the City in better shape and wished he him the best of luck.

Councilmember Overton said that he appreciated Mr. Meilbeck taking the risk, realizing it was a sacrifice. It has been an invaluable experience for him and for the Council and City. He said that it was a treat and he thanked him for his service. He looked forward to serving on the NAIPTA Board.

Councilmember Putzova noted that she and Mr. Meilbeck started near the same time and she really appreciated his leadership style. She said that it was the exact type of style the City needed in the interim period. They did a lot of work, but one of the processes she wanted to highlight was the incredible job he did with the budget and the overall budget process.

Ms. D'Andrea said that she had previously conveyed her thoughts at the Leadership meeting, but she added that she very much appreciated working with Mr. Meilbeck and he helped to bring the leadership together.

Mr. Meilbeck thanked everyone for the gifts and kind words. He said that it has been a tremendous honor to be able to do this work with this team. He said that it was a great organization and a reflection of a great community.

Moved by Councilmember Jeff Oravits, seconded by Councilmember Karla Brewster to appoint Josh Copley as the City Manager, effective at the end of the August 25, 2015, Council meeting and approving and ratifying his Agreement and the First Amendment to reflect the transition date.

Vote: 7 - 0 - Unanimously

Lisa Hutchinson, Flagstaff, commented on the issue related to the sidewalk repair in front of her property and asked that someone on the Council champion changing the sidewalk ordinance.

Business Retention and Extension Manager John Saltonstall gave a PowerPoint presentation which addressed:

OVERVIEW
Description and History
Loan Size and Target Industries
Community Need
Role of Private Lending
Marketing
Existing Access to Capital Framework
Process and Example

WHAT IS THE REVOLVING LOAN FUND?
Economic Development Administration federal grant of $217,000
City will manage the federal grant
Grant will be used to make loans to small businesses in Northern Arizona
As loans are repaid, those funds become available for new loans (revolving)

HISTORY
Economic Development Administration RLF for rural Arizona
Department of Commerce to NACOG to City of Flagstaff
Council Approval

LOANS
$217,000
$25,000 - $75,000
Term not to exceed five years

TARGET INDUSTRIES
Healthcare/Biotechnology
Software and Systems Design/Engineering/Development
Aviation Related Businesses
Transportation/Logistics
Research and Testing
Medical Device Manufacturers
Renewable/Clean Technology
Workforce Development/Education
Agriculture
Tourism/Entertainment/Destination Experience

COMMUNITY NEED
Comprehensive Economic Development Strategy
Serves Apache, Coconino, Mohave, and Navajo Counties

INDUSTRY EXPERTISE
Financial Lending Institution will service loans

MARKETING
Commercial and industrial brokers
Commercial banks that serve the Target Area
Article per year in a local newspaper or periodical direct marketing
Business associations
EDD Native communities
NACOG website

EXISTING REGIONAL FRAMEWORK LOCAL PARTNERSHIP
www.nazfunds.org
SEDI
NACET
ECoNA
City of Flagstaff
Chamber


Mr. Saltonstall said that right now the City of Flagstaff participates, but they do not have any cash on the table. With this acceptance, they will be bringing the $217,000, providing $25,000 to $75,000 loans. The funds themselves are being received from NACOG and the City will administer them with personnel time involved, but no direct funding.

PROCESS
Apply
Loan Review Committee
Loan Administration Board

PROCESS EXAMPLE

Councilmember Oravits asked, if there are three Flagstaff staff members and two from the lending institution serving on the Loan Administration Board, how they are sure to be administered equally throughout the four counties. Vice Mayor Barotz noted that a lot of what is being discussed is reflected in the agreement drafted by the EDA. Mr. Saltonstall explained that there was a lot of dialogue back and forth and they worked with the EDA to find out exemplary administrative plans. They took what NACOG used for this reason and met the EDA's needs and the City's needs. Based on that, they determined this would provide good oversight for the community and region and keep them in good standing of financial practices.

Economic Vitality Director Heidi Hansen added that by going back to the Process flowchart, they will see that before it even gets to the City's Loan Administration Board, it first goes to the Loan Review Committee which has representatives from the various partners.

Councilmember Putzova asked how much of the $217,000 was designated to cover administration costs. Mr. Saltonstall said that one percent is designated for administration.

DEFAULT
No payment
Collection
Write-off

Mr. Saltonstall said that the City would not be required to repay the loan in the case of a write-off. The only exception to this would be if the City fails to follow prudent lending practices or fails to follow the plan.

Councilmember Oravits said that they are coming to get these loans because they are not able to go to a traditional lending source--they are a higher risk. Mr. Saltonstall said that was one of the reasons that the EDA developed and made these funds available. Money gets tight over time, but at the same time there is interest in spurring economic activity and new business. He then read the list of different types of collateral that are accepted with the program.

Councilmember Putzova asked Mr. Saltonstall, in his professional opinion, if the City of Flagstaff will benefit from this relationship and if it is good, understanding that they have to put in staff for the administration. Mr. Saltonstall said that he hoped so; it is anyone's guess with the economy at this time, but in terms of their role in providing the business community with the greatest number of tools to succeed, he thinks it is a good thing.

Vice Mayor Barotz suggested that they report back to Council in 12-18 months to evaluate how much time staff has put in the process. Mr. Saltonstall said that there were mandatory reports due to EDA which could easily be shared with the Council at the same time.

Moved by Vice Mayor Celia Barotz, seconded by Councilmember Coral Evans 

Vote: 5 - 1

NAY:

Councilmember Jeff Oravits

Moved by Vice Mayor Celia Barotz, seconded by Councilmember Coral Evans to approve the Revolving Loan Fund Administrative Plan that will manage the Economic Development Administration (EDA) Revolving Loan Fund (RLF) Program monies.

Vote: 5 - 1

NAY:

Councilmember Jeff Oravits

Utilities Engineering Manager Ryan Roberts explained that this item was to adopt the Notice of Intention which allows the City to notify the public of the upcoming Public Hearing scheduled to begin on October 6, 2015, on the utilities rate study and recommendations. He began a PowerPoint presentation (Exhibit A attached hereto and made a part hereof) which addressed:

ACTION REQUESTED
PURPOSE/OBJECTIVE
AGENDA

Mr. Roberts then introduced Jonathan Varnes of Willdan Financial Services, who continued the presentation:

BACKGROUND
UTILITIES RATE STUDY REPORT STRUCTURE (Report 1 of 2)
CAPACITY FEE REPORT STRUCTURE (Report 2 of 2)
KEY ITEMS OF NOTE IN THE REPORT

Vice Mayor Barotz asked for clarification of when Mr. Varnes said "water" he meant just water and did not include reclaimed. Mr. Varnes said that was corrected

Councilmember Evans asked if they tied the study to conservation efforts. Mr. Varnes said that the mere fact of having a tiered structure leads to conservation which included commercial rates, but they did not do an empirical analysis.

Councilmember Putzova asked if she understood correctly that all rates will be looked at--water, sewer, and reclaimed water. Mr. Varnes said that was correct, as well as stormwater.

Mr. Hill said that for those that had their report in front of them, if they looked at the Executive Summary page 3, that is an outline table of what Mr. Varnes has presented to them.

Vice Mayor Barotz said that with the reclaimed water rate structure, she recollected that where it outlines all of the rates, there are various categories of reclaimed water users, such as golf course, noncommercial, etc. She assumed that this proposed Option 1 and Option 2 would just mean that those different rates would be adjusted accordingly. Mr. Hill said that was correct. Only the water is looking at the tiered structure; everything else stays the same. He said that there was no recommendation to changing the reclaimed water categories.

Councilmember Putzova said that when they have the presentation it would be helpful for them to understand, to look at the entire water budget and how it is used by different types of users. Mr. Roberts said that they have a pie chart that will assist with that.

NEXT STEPS

Mr. Roberts said that right now they have met with five outside public agencies and civic groups. They have another seven or eight to go. They will be back on October 6 to hold the first public hearing and there will be additional public hearings to receive feedback. The current schedule plans to come back before Council on November 3 for first reading of the ordinance, with rate changes to become effective in the first part of 2016.

Vice Mayor Barotz asked what the difference was between the draft report and the final report they just received. Mr. Varnes said that the new one was truncated; more streamlined and reader friendly. It includes an Executive Summary and they actually streamlined the body of the report for that purpose. They also added a couple more scenarios, as requested by the Water Commission.

Mr. Hill conveyed that by adopting the resolution, Notice of Intention, they were not obligated to increase rates. He said that this was a statutory requirement, giving a 60-day signal, but it does not bind the Council.

Moved by Vice Mayor Celia Barotz, seconded by Councilmember Coral Evans to read Resolution No. 2015-31 by title only.

Vote: 6 - 0 - Unanimously

A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL ADOPTING NOTICE OF INTENTION TO INCREASE WATER, RECLAIMED WATER, WASTEWATER AND STORMWATER RATES OR RATE COMPONENTS, FEES OR SERVICE CHARGES AND ESTABLISHING A DATE FOR A PUBLIC HEARING ON THE PROPOSED 
 

Moved by Vice Mayor Celia Barotz, seconded by Councilmember Coral Evans to adopt Resolution No. 2015-31.

Vote: 6 - 0 - Unanimously

A break was held from 7:30 p.m. to 7:34 p.m.

City Clerk Elizabeth Burke briefly reviewed the ordinance presented, noting the changes made between the draft and final agenda. After brief discussion, staff was directed to move the individual requirement for contact information into the text required only of the individual submitting the petition and not everyone signing it. Staff was also directed to request some type of contact information, understanding that some people do not have e-mail.

Councilmember Evans also requested that once the petition form is adopted that it be translated into Spanish, Hopi and Navajo, and that there is an outreach effort made, with all forms available on the website.

Moved by Mayor Jerry Nabours, seconded by Councilmember Jeff Oravits to read Ordinance No. 2015-16 by title only, with the changes discussed (person submitting petition provide their name, residence, address and contact information; other signers provide printed name, signature, residence address and date signed).

Vote: 6 - 0 - Unanimously

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, ARIZONA, AMENDING THE FLAGSTAFF CITY CODE TITLE I, ADMINISTRATIVE, BY ADDING A NEW CHAPTER 12, CONSIDERATION OF PETITION, RELATED TO CITIZEN PETITIONS AND ESTABLISHING AN EFFECTIVE DATE
 

Mayor Nabours asked that in the final packet for September 1, 2015, more information be provided on the proposed purchase of a backup power system for $500,000 at the Fort Tuthill Water Well. He would like to hear what the worst case scenario would be if the well went down, winter versus summer, and what other systems they have, as well as the likelihood that they would be out of power to that well for any sustained period of time.

Councilmember Overton said that he had the same concerns. Plus, he would like to have local vendors looked at for potential supply of a portable generator. He said that this would get very little use for such a high capital cost.

Mayor Nabours also asked that the ordinance regarding retiree insurance have the penalty clause removed.

The following individuals address the Council, requesting that this item be placed on a future agenda for discussion:

♦Claire Herrrick
♦Paul Deasy

Mayor Nabour said that he would not be supporting this request, and it had nothing to do with the pros or cons of this particular program. He said that he regularly gets requests for support of one thing or another, but he does not believe that they should adopt resolutions of support as an organization, although individuals could do as they please.

Councilmember Oravits said that he has supported some resolutions in the past urging action of a particular sort, but he would not be supporting this request.

Vice Mayor Barotz said that she thinks that it is important to at least have a discussion on this issue in depth. She actually believes that it is an important part of Council's function to communicate with other elected officials when they support specific action.

Councilmember Putzova said that she also supports putting this on a future agenda. They lobby their representatives all the time and she thinks it is an appropriate action to consider an item that is important to their constituency and has an effect on their community.

Councilmember Evans said that according to the City Charter, the Council acts by resolution, ordinance and policy and one of the things they look at is citizen petitions.

With the support of three Councilmembers, this item will move to a future agenda.

Councilmember Putzova said that she was approached by a citizen with concerns about the heroine problem in the City. She asked for a Council Communication Report (CCR) on the subject, to include reaching out to their health care providers to get a better understanding of whether there is an increase concern.

She also requested a future agenda item request (FAIR) for a declaration of Indigenous Peoples Day, instead of Columbus Day, and have an opportunity to talk with the Native American community on what other meaningful action they could take to foster respect.

Councilmember Putzova also asked for a FAIR to discuss the Council's travel policy or to create a travel policy, how funds are used within that fund, and whether those funds could be used elsewhere.

Councilmember Evans supported the discussion of Indigenous People's Day and also asked for a CCR on traffic in the Linda Vista Corridor. She has had residents in that area comment that the police used to patrol more and there are a lot of speeders in that area.

Councilmember Oravits requested a FAIR on amending the Rules of Procedure to require four votes by Council to move an item from the FAIR to a future agenda.

Vice Mayor Barotz reiterated their thanks to Mr. Meilbeck for his service to the City.

Mayor Nabours reported that he was in Tucson last week for the League of Arizona Cities and Towns Annual Conference and Flagstaff had quite an influence on the proceedings with representatives from Northern Arizona University, the Forest Service, Forest Management, City staff, etc. He presented on trains in cities which was well attended. He said that the biggest hit was Louie the Lumberjack and he thanked staff for getting that arranged as well as the booth activities.

Mayor Nabours requested a FAIR on review of the Sidewalk Repair Ordinance.

Mr. Meilbeck congratulated Barbara Goodrich on her new position as Deputy City Manager. Additionally, he reported that work will begin next week on the Francis Short Pond to get the weeds cleared out.

Council was also reminded of the upcoming Joint Meeting with the County Board of Supervisors scheduled for September 21, 2015.

The Regular Meeting of the Flagstaff City Council held August 25, 2015, adjourned at 8:13 p.m.