Mayor Nabours welcomed Senator Flake, who then said that he wanted to talk with them about issues important to rural Arizona.

FOREST HEALTH - Senator Flake said that it was great to see a new sawmill being built to assist with these efforts, realizing that they have all been concerned with the slow movement. He said that after the Rodeo-Chedeski Fire they saw a lot of industry come into eastern Arizona through stewardship contracts, but it was a continual struggle to get the USFS to move things along.

He said that 4FRI is a big deal, not just for northern Arizona communities, but for the West and the entire country. He said that if this model works, it can really help in the public/private partnerships to manage forests. The hurdles with the USFS and government have now been jumped, and now the delay has been with the contractor. They were supposed to see 50,000 acres treated annually, but in the last three years they have seen a total of 4,000 acres.

Senator Flake said that he appreciated the work done by the City and other levels of government with resolutions and being able to free up some of their own acreage for the new contractor, and with freeing up money themselves. That idea of contributing City funds is novel; it has not happened anywhere else.

He said that it is important for economic development and the watershed; they need a healthy watershed which would provide 20-25% more water. It will be vital for the survival of the state in terms of water.

POWER GENERATION - Senator Flake said that they think they have a way to move forward with the Navajo Generating Station, which affects power rates and water as well. He said that it goes to the Central Arizona Project, the biggest power user in the State. If that project is not able to pump water cost effectively, it has big impacts as well.

He said that Arizona has planned well over the past decades with the Groundwater Management Code, but others have not, such as with California. He said that he and Senator McCain have made efforts to meet with the Governor and ast Senator Kyl to encourage the Governor to bring together all of the water users so they speak as one voice. The consensus item that they have agreed on to be asked is to expedite treatment for the watershed which could have impacts here in the north as well.

BUDGET - Senator Flake said that they hope to not have a government shutdown again; he thinks it is unlikely as it does not serve any ends. He said that last time Arizona stepped up and helped the Park Service reopen the Grand Canyon, but they never got paid. He said that they introduced legislation that in the case of that happening again, the federal government would enter into an agreement with the State to keep the parks open. He said that there has been good bipartisan cooperation on that legislation.

At this time Senator Flake opened it up for questions. Mayor Nabours asked about the federal government not passing federal transportation bills, which has had an impact on the ability for the City to receive assistance with a bridge overpass. He asked Senator Flake what was going on with that issue. Senator Flake said that they typically reauthorize highway bills every five years. Since the last one expired, they have been doing it every three months at a time, which is no way to run a government. He said that the problem is the long-term funding source and cars being more energy efficient. Those tax funds are not sufficient to maintain the highway fund and they have had to dip into the general revenues. He said that there are good ideas to give a huge jolt to infrastructure such as the re-creation of assets, designating all or most to infrastructure spending. He said that it would provide a jolt, but it is not a long-term solution.

He said that he has to question whether the answer is to raise the federal gas tax, because Arizona would not get dollar for dollar on return. He said that once the money goes from Arizona to Washington it carries a lot of mandates and stipulations which make that dollar spend less. He said that it makes more sense to levy a state tax and some states have moved ahead in that direction such as Utah. He said that there is no appetite to increase the federal gas tax because so many representatives of states are asking why they would do that.

Councilmember Evans thanked Senator Flake for being there and said that two issues she was concerned with were the Rio de Flag and the Veterans Home in Flagstaff. She said that they still need assistance to get the LLR signed by October 31 for the Rio de Flag. She said that this has been ongoing and funding has been hit and miss, and she was hoping they could get his support. Also, she said that the City has located property for the Veterans Home in Flagstaff and has done a resolution supporting it. They have talked with the Arizona Department of Veteran Services. They are hoping Governor Ducey will approve the budget, and they are looking to the federal government to get that started. She said that Representative Kirkpatrick's office supports those efforts and she asked if Senator Flake would support them as well.

Senator Flake said that they would check in and see if that is formula funding on the Rio de Flag. Clint Chandler with Senator Flake's Office said that they will inquire into the funding and try to get it expedited. Bob Holmes (attending telephonically) said that they need to get the LLR done in order to qualify for funding. He talked with the Corps regional office and district office and as of yesterday it had not been transmitted. He said that the regional office has 30 days to review, although they thought it could be done in two weeks, but that puts them on the cusp. He said that he would be happy to work with Clint to make sure this gets out. He said that the City has been waiting too long for this funding.

Councilmember Oravits said that with the last government shutdown and the temporary closing of the park service, it had a huge impact on the local hotels. He asked Senator Flake to further explain the mechanism he mentioned in the beginning of the meeting. Senator Flake said that they introduced two pieces of legislation. The first went to the Interior. As soon as they reopened the parks they backfilled the funding as of that date and since the state paid out, they should be refunded. They said that Congress needed to authorize them to refund the state. That bill is out of committee and is waiting in the House. He said that second bill is if there is another shutdown the federal government is required to work with the state and if the state has a plan and wants to keep them open they will be refunded. He said that did get bipartisan support and is also out of committee and waiting for action in the House. He does think that a shutdown is unlikely.

Councilmember Putzova said that she was glad that Senator Flake started talking about the forest health and environmental health. She said that there is a large concern with the Grand Canyon and protection of that area and the Grand Canyon Watershed Monument. She asked what his thoughts were on that issue and if he could be their champion on it. Also, she asked about the issue of putting a price on carbon. She asked if there was a different way to champion putting a price on carbon that goes back to changing people's behavior.

Senator Flake said that he would not favor the Grand Canyon Watershed Monument. He thinks they have to take every measure and make sure it is protected, but having these types of designations on federal land that already have protections under the law make it more difficult for land exchanges, etc. Also, they have a huge shortfall in terms of monies available to keep their parks and protected areas protected. He does not want to add to that inventory when they are not funding some of the priority items.

Senator Flake said that in order for him to support a carbon tax, it would have to be revenue neutral, taking into account the other costs that are borne with such a tax. He said that in the future there is going to be some kind of price on carbon, but he does not see that coming any time soon.

Mayor Nabours said the City had moved its railroad tracks some time back and the land underneath the previous tracks reverts back to the federal government if not used as railroad. He said that he knew that Senator Flake had done work on that with Bob Holmes, and as he understood it the government will often waive that reversionary right. Mr. Chandler replied that they are bundling those types of issues into a bill with such things that they do not believe will result in much opposition. Mr. Holmes said that they appreciated all of their good work on that and asked when they plan on introducing that bill. He said that his greatest fear is that as they move into 2016 the legislative days become few and all days become politicized. Mr. Chandler said that they are assembling items across Arizona and they will bring in Representative Kirkpatrick as well.

Councilmember Overton said that this year Arizona was able to dodge a lot of fire risk, although California, Washington and Oregon have not been as lucky. He said that a few years ago Senator Flake worked on legislation regarding suppressing and treatment of fire and asked if he saw in the immediate future a push back again to look at those formulas. Senator Flake said that there are a few pieces of legislation being considered. He and Senator McCain worked on the Flame Act amendments which would separate funding for suppression and management of the forests. He said that it would force the USFS to spend on the management side as well. He said that they think their bill is likely to pass the House as there is more support on a bipartisan basis. He said that they have also had better cooperation from the environmental side. He said that when driving through the Alpine area it is visible where treatment had and had not taken place after their fire.

Councilmember Overton asked if there was anything that could be leveraged or any way to press the process now with the contractor. Senator Flake said that in the past the progress was always blamed on the USFS. He discussed this with Good Earth and asked for those mileposts. He said that when the task orders come out it is his understanding that if fines are not accrued they can make changes to the contracts. He said that they will be putting pressure on the USFS to take action outside of the contract and also working with the Governor's Office.

Ann Marie Zeller addressed the issue of uranium mining and asked how Senator Flake felt about foreign companies mining for uranium in Arizona. Senator Flake said that they have the Grand Canyon and the envelope around it that is protected. They also have economic development, including mining, that can take place outside of that area. He said that there is economic development that can be supported, whether foreign or not, and it has to be done in a sensitive manner, recognizing the boundaries that they have.

Ms. Zeller continued that the Department of Energy shows that the United States has a 50 year surplus of uranium. She asked what was in it for the US, letting them mine so close to the Grand Canyon if there is no need. Senator Flake said that he was not sure of the surplus figures, but if those were the case it would appear that the market would not bear it, and they will not see any mining.