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

Dennis Givens addressed Council with a message of appreciation and encouragement. He spoke about the value of public service and called public servants his heroes. He emphasized the importance of compassion, unity, and working together to serve the community.

Sustainability Supervisor Steven Thompson addressed Council and invited them and the community to attend the upcoming Earth Day celebration the following Sunday at Bushmaster Park.

William Bedlam, a business owner on Huntington, addressed Council and expressed concern about ongoing homelessness-related issues in the area. He described persistent problems including street camping, junk vehicles, public defecation, and disorderly behavior, which had created safety concerns for his staff and clients. Despite contacting the police, he said he was told nothing could be done. He urged the Council to take action to address the issue.

Councilmember Harris shared updates from the Parks and Recreation Commission meeting, highlighting productive discussions and efforts to improve public understanding of park rules. She also provided an update on the Ponderosa Park sport courts, noting that construction was progressing and expected to begin soon.

Councilmember Sweet reported from the Beautification and Public Art Commission, where seven new Beautification-in-Action grants were currently under review, with decisions anticipated in May. She also noted upcoming meetings for Mountain Line, the Water Commission, and the Northern Arizona Municipal Water Users Association.

Councilmember House mentioned the April Housing Commission meeting was canceled but would resume next month. She attended the Flagstaff Sister Cities meeting alongside Mayor Daggett to explore future projects. Additionally, she praised the Teen Challenge Arizona Banquet she attended the week before, calling it a powerful event that surpassed its fundraising goals and featured inspiring recovery stories from participants.

Moved by Councilmember Khara House, seconded by Councilmember Miranda Sweet to appoint Chelita Borbon Runbeck to a term expiring April 2027.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Khara House, seconded by Councilmember Miranda Sweet to approve the Consent Agenda as presented.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Lori Matthews, seconded by Councilmember Miranda Sweet to read Ordinance No. 2024-09 by title only for the final time.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Lori Matthews, seconded by Councilmember Miranda Sweet to adopt Ordinance No. 2024-09.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Miranda Sweet, seconded by Councilmember Khara House to read Ordinance No. 2024-11 by title only for the final time.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Miranda Sweet, seconded by Councilmember Khara House to adopt Ordinance No. 2024-11.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Deborah Harris, seconded by Councilmember Miranda Sweet to read Ordinance No. 2024-12 by title only for the final time.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Khara House, seconded by Councilmember Miranda Sweet to adopt Ordinance No. 2024-12.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Lori Matthews, seconded by Councilmember Jim McCarthy to adopt Resolution No. 2024-15.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Lori Matthews, seconded by Councilmember Jim McCarthy to read Ordinance No. 2024-13 by title only for the final time.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Lori Matthews, seconded by Councilmember Jim McCarthy to adopt Ordinance No. 2024-13.

Vote: 7 - 0 - Unanimously

Real Estate Manager Bryce Doty provided a PowerPoint presentation that covered the following:

LONE TREE OVERPASS CONDEMNATION
VICINITY MAPS
SV DIRTWORKS
CAMPUS CREST

Moved by Councilmember Jim McCarthy, seconded by Councilmember Miranda Sweet to read Resolution No. 2024-18 by title only.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Jim McCarthy, seconded by Councilmember Miranda Sweet to adopt Resolution No. 2024-18.

Vote: 7 - 0 - Unanimously

Real Estate Specialist Carmen Pryor addressed Council and stated that the ordinance was to ratify the acquisitions of easements for the prior year.

Moved by Councilmember Khara House, seconded by Councilmember Miranda Sweet to read Ordinance No. 2024-18 by title only for the first time.

Vote: 7 - 0 - Unanimously

Management Services Director Rick Tadder explained that the cooperative agreement was designed to help manage the city’s cash balances more efficiently. Under the agreement, the cash advance fund would be invested on the city’s behalf, providing improved financial management and potential returns. 

Councilmember McCarthy added that the Flagstaff Metropolitan Planning Organization had recently approved the same agreement.

Moved by Councilmember Miranda Sweet, seconded by Councilmember Jim McCarthy to approve the Cooperative Agreement between the City of Flagstaff and Flagstaff Metropolitan Planning Organization for the purposes of a cash advance fund.

Vote: 7 - 0 - Unanimously

Water Services Manager Erin Young and Carol Malesky with Stantec provided a PowerPoint presentation that covered the following:

WATER, RECLAIMED WATER, & WASTEWATER COST-OF-SERVICE STUDY
WHY ARE WE HERE?
AGENDA
HOW WE FUND OUR WATER SERVICES NEEDS
FINANCIAL PLANNING
KEY FINANCIAL ASSUMPTIONS & ADJUSTMENTS
FINANCIAL PLANNING SCENARIO RECAP
WATER FUND
INITIAL RATE STUDY 5-YEAR FINANCIAL OUTLOOK – WATER
WATER FUND ANNUAL EXPENSES
FULL WATER CIP LIST
WATER FUND CIP FUNDING FY 24-33
WATER FUND RATE PROJECTIONS
WASTEWATER FUND
INITIAL RATE STUDY 5-YEAR FINANCIAL OUTLOOK – WASTEWATER
WASTEWATER FUND ANNUAL EXPENSES
FULL WASTEWATER CIP LIST
WASTEWATER FUND CIP FUNDING FY 24-33
WASTEWATER FUND RATE PROJECTIONS
RECLAIMED WATER FUND
INITIAL RATE STUDY 5-YEAR FINANCIAL OUTLOOK – RECLAIMED WATER
RECLAIMED WATER FUND ANNUAL EXPENSES
FULL RECLAIMED WATER CIP LIST
RECLAIMED WATER CIP FUNDING FOR FY 24-33
RECLAIMED WATER FUND RATE PROJECTIONS
CAPACITY FEES
CAPACITY FEE METHODOLOGIES – COMBINED METHOD RECOMMENDED BY WATER COMMISSION
LEVEL OF SERVICE DISCUSSION – ACTUAL USE RECOMMENDED BY WATER COMMISSION
SUMMARY OF COUNCIL DIRECTION
GROWTH RELATED WATER PROJECTS
WATER CAPACITY FEE OPTIONS USING THE COMBINED METHODOLOGY
PROPOSED WATER CAPACITY FEES – COMBINED METHODOLOGY
GROWTH RELATED WASTEWATER PROJECTS
WASTEWATER CAPACITY FEE OPTIONS USING COMBINED METHODOLOGY
PROPOSED WASTEWATER CAPACITY FEE OPTIONS – COMBINED METHODOLOGY
MISCELLANEOUS SERVICE FEES
MISCELLANEOUS FEE PROCESS
WATER METER INSTALLATIONS

Mayor Daggett asked whether the charge in question was included in the hookup capacity fees or if it was separate.

Ms. Malesky clarified that it was separate. The fee discussed was for the physical connection to the system, while capacity fees were charged for the additional demand placed on the system.

SERVICE CHARGES
SEWER MISCELLANEOUS FEES
SEWER SURCHARGE RATES FOR HIGH STRENGTH WASTE
COST-OF-SERVICE RATES
RATE DESIGN PRIORITIES
WATER RATES
RATE DESIGN OPTIONS REVIEW
WATER RATE STRUCTURE – OPTION 3 REVISED
OPTION 3 REVISED – FIVE YEAR RATES
WATER PROJECTED AVERAGE BILL IMPACTS FOR OPTION 3 REVISED

Councilmember McCarthy asked if the “institutional” rate category included Northern Arizona University, to which Ms. Malesky confirmed that it did. Councilmember McCarthy expressed concern that the proposed 39% rate increase for the institutional category seemed unusually high.

WASTEWATER RATES
FIXED + CONSOLIDATED – OPTION 3
OPTION 3 – FIVE YEAR RATES
WASTEWATER PROJECTED AVERAGE BILL IMPACTS FOR RATE OPTION 3
COMBINED BILL IMPACTS
BILL PROJECTIONS FOR PROPOSED RATE STRUCTURE – RESIDENTIAL
BILL PROJECTIONS FOR PROPOSED RATE STRUCTURE – COMMERCIAL
RECLAIMED WATER RATES
RECLAIMED WATER RATES BASED ON OPTION 3 REVISED
SUMMARY OF REVIEWED RATES & CHARGES

Councilmember Matthews expressed concern with moving forward on rate increases without more thorough public understanding and Council review. She questioned the growth projections underlying the Capital Improvement Plan and emphasized the need to explore different project timelines and financial impacts. Councilmember Matthews requested a future work session to review potential scenario modeling, including how project delays or funding changes would impact rates, in order to enhance public transparency and trust.

Ms. Malesky agreed that it would be valuable and noted that the city had time to host such sessions prior to final rate adoption. Water Services Director Shannon Jones also supported the idea of a town hall meeting to directly engage the public, answer questions, and provide clarity.

Councilmember Matthews stressed the need to proactively inform residents, noting that awareness was growing and many would have questions. She asked whether the public rate calculator was live, and Mr. Jones confirmed it included water and wastewater but not reclaimed water rates.

Councilmember Harris emphasized the importance of allowing the public to ask questions directly and suggested that scenarios be created to reduce overall costs. Councilmember Matthews added that extending the rate increase timeline from five to seven or ten years could be another option. She also asked why potential federal grant funding was not factored into the projections.

Councilmember House raised affordability concerns, both for institutions like Northern Arizona University and nonprofits, as well as for residential users. She asked whether the study considered broader economic impacts, such as housing affordability and institutional strain. Ms. Malesky responded that while the cost of service analysis focused on equity in rate distribution, policy options, such as waiving fees for affordable housing, could be explored to mitigate impacts.

Councilmember Sweet supported another meeting to go deeper into scenario planning and suggested Council submit questions in advance. 

Councilmember Harris asked whether staff could run scenarios in real time during the sessions. Ms. Malesky noted the modeling tool could run certain scenarios on the fly, but having advance notice would ensure better preparedness and accuracy.

Councilmember McCarthy stated that the current issue stemmed from “sticker shock,” and the only real ways to reduce that was to shift the cost burden or scale back planned projects. Mr. Jones explained that the base rate structure allowed customers to control costs through water usage, those who used more water saw larger increases. He noted that water customers using minimal volumes experienced little impact, while high-volume users would be more affected.

Councilmember Harris emphasized the need to clearly communicate trade-offs to the public, asking: “If I take it from here, where do I get it from?”

REQUESTED ACTION

Stephen Puhr addressed Council and urged caution, citing regional population data and long-term trends. He noted that Flagstaff’s projected growth may not justify major infrastructure investments and stated that projections should reflect realistic assumptions about future population needs.

Ms. Young reported she had spoken with roughly 35 residents, who appreciated early notice of the five-year plan. She said the rate calculator was just released and that the city was monitoring website traffic. She received questions about potential senior discounts and emphasized that many residents were starting to pay attention.

Councilmember Matthews voiced concern that households with more residents, such as families doubling up, may face disproportionate impacts due to tiered rate structures. She also emphasized the need to make sure businesses and nonprofits were fully informed and used the rate calculator.

Ms. Young and Mr. Jones stated that they had been in ongoing communication with the Chamber of Commerce, Northern Arizona University, and other community groups. Mr. Jones added that outreach efforts were ongoing and that the team was working to facilitate conversations as quickly as possible.

Councilmember House asked whether usage of the calculator was being tracked. Ms. Young confirmed it was released earlier that day, and tracking data would be available.

Council supported holding both a dedicated work session and a separate town hall to enhance public understanding and ensure transparency around the proposed water and wastewater rate increases. The intention was to review scenario options, engage the public directly, and provide clear information on trade-offs, timelines, and impacts.

Moved by Vice Mayor Austin Aslan, seconded by Councilmember Khara House to read Resolution No. 2024-19 by title only.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Deborah Harris, seconded by Councilmember Khara House to adopt Resolution No. 2024-19.

Vote: 7 - 0 - Unanimously

A break was held from 5:18 p.m. through 5:30 p.m.

Planning Director Michelle McNulty, Read Stapleton with DOWL, Jamin Kimmell with Cascadia Partners, and Mark Raggett with GBD Architects provided a PowerPoint presentation that covered the following:

LASS + CAP PROJECT UPDATE
AGENDA
1. PROJECT PURPOSE AND GOALS
PROJECT INTRODUCTION
PROJECT SCOPE
2. LAND AVAILABILITY/SITE SUITABILITY PROJECT FINDINGS
PURPOSE AND GOALS – LASS
HIGH-LEVEL PROCESS
LASS FINDINGS
OPPORTUNITY SITES
GENERAL CONCLUSIONS – OPPORTUNITY SITES
3. CODE ANALYSIS PROJECT: APPROACH AND METHODOLOGY
PURPOSE AND GOALS – CAP
THREE PHASES OF THE CODE ANALYSIS
DISTILLING POLICIES AND GOALS INTO CLEAR OUTCOMES
SCOPE OF THE CODE ANALYSIS
METHODOLOGY
4. CODE DIAGNOSTIC KEY FINDINGS: ZONING AND SUBDIVISION CODES
WHERE IS THE BUILDABLE LAND? WHAT ZONES HAVE THE MOST CAPACITY FOR NEW HOUSING?
WHERE DOES THE REGIONAL PLAN CALL FOR NEW HOUSING TO BE PRIORITIZED TO MEET CLIMATE AND HOUSING GOALS?
WHERE DOES THE REGIONAL PLAN CALL FOR NEW HOUSING TO BE PRIORITIZED TO MEET CLIMATE AND HOUSING GOALS?
WHERE ARE THE HOUSEHOLDS THAT ARE VULNERABLE TO DISPLACEMENT IF HOUSING PRODUCTION DOES NOT KEEP PACE?
WHERE ARE THE HOUSEHOLDS THAT ARE VULNERABLE TO DISPLACEMENT IF HOUSING PRODUCTION DOES NOT KEEP PACE?
OVERVIEW OF MAJOR BARRIERS AND ISSUES
REVIEW PROCEDURES: ZONING MAP AMENDMENT, SUBDIVISION
SINGLE-FAMILY RESIDENTIAL ZONE
MEDIUM DENSITY RESIDENTIAL ZONE
RESOURCE PROTECTION OVERLAY ZONE
COMMERCIAL ZONES
MINIMUM PARKING REQUIREMENTS
HIGH OCCUPANCY HOUSING REGULATIONS
AFFORDABLE HOUSING INCENTIVES
SUSTAINABLE BUILDING INCENTIVES
TENSIONS WITH OTHER POLICY GOALS
5. CODE DIAGNOSTIC KEY FINDINGS: ENGINEERING, TRANSPORTATION IMPACT ANALYSIS, AND FIRE ACCESS STANDARDS
STAKEHOLDER COMMENTS – EXAMPLES
WATER AND SEWER POTENTIAL BARRIERS
TRANSPORTATION AND ACCESS CODE ISSUES
TIA REQUIREMENTS POTENTIAL ISSUES
6. CODE DIAGNOSTIC KEY FINDINGS: BUILDING CODE
BUILDING CODE KEY FINDINGS
7. NEXT STEPS
LASS + CODE DIAGNOSIS OUTREACH

Councilmember House thanked the presenters and reflected on how housing policy and code changes impacted both sustainability and housing goals. She raised the importance of incentivizing sustainability in existing developments, noting a potential missed opportunity to highlight the benefits of sustainability for current buildings. Mr. Kimmell responded that while the code could influence new development through standards and incentives, it was not designed to address existing buildings unless a project triggered code compliance. Other tools, such as financial incentives or loan programs, may be more appropriate for existing properties.

Councilmember House also asked about outreach to existing neighborhood associations and how they might be impacted. Mr. Stapleton confirmed that a public engagement plan, led by Renee Redday from Building Community Flagstaff, was in place to involve residents and interpret how diagnostic findings may affect neighborhoods.

Councilmember McCarthy emphasized the long-term savings associated with building features like insulation, suggesting that up-front costs may be offset by reduced operating costs. Vice Mayor Aslan praised the consultants for balancing multiple priorities and warned against focusing so narrowly on one issue that unintended consequences arise. He stressed the importance of finding common ground and relying on the collective perspective of the Council.

Councilmember Harris cautioned against over-regulating new housing, which could raise costs and exclude potential homeowners. She pointed out that many renters might not benefit from costly sustainability features like electric vehicle chargers and encouraged the team to engage with long-standing local organizations.

Mayor Daggett expressed enthusiasm for the progress made and encouraged more support for building smaller, more affordable homes. She emphasized the need to shift development trends away from large, high-cost homes and to prioritize land use that supported affordability. Councilmember Sweet echoed that sentiment, noting similar feedback from residents.

Mr. Clifton thanked the consulting and staff teams, highlighting concerns about the Resource Protection Ordinance and its lack of attention to forest health, which had implications for fire risk and homeowners insurance.

Mayor Daggett highlighted the alignment between the city’s goals for housing, sustainability, and climate action, noting that emphasizing the alignment could help bring more community members into the conversation.

Councilmember Matthews raised the topic of how the Vice Mayor was selected, emphasizing the importance of experience, history, and expertise in that role. She expressed her support for Vice Mayor Aslan, noting his prior service and preparedness. Councilmember Matthews recalled a past practice where the Vice Mayor position was given to the councilmember who received the most votes two years earlier, but stated that the role should be based not only on electoral performance but also on readiness to serve and contribute meaningfully. She recommended holding a discussion before the next election to consider whether changes should be made to the selection process.

Councilmember McCarthy agreed, referencing the former policy and voicing his support for revisiting the approach.

There was requisite support to advance the item to a future agenda for discussion.

None

Councilmember House shared her participation in the Northern Arizona Book Festival, praising the strong literary culture in Flagstaff. She acknowledged Black Maternal Health Week, Autism Acceptance Month, and Minority Health Month. She also joined the Mayor in a listening session with the Arizona Office of Tourism, describing it as a meaningful opportunity to promote Flagstaff’s identity as a "community of dreamers and innovators" and to engage with the state’s branding efforts.

Vice Mayor Aslan requested that the Council expedite discussion of a FAIR petition regarding a ceasefire, noting it had the support of four Councilmembers.

Councilmember Harris attended the Congress to Campus event at NAU, where students engaged with retired members of Congress. She also mentioned updates at Bushmaster Park sport courts, the upcoming Affordable Housing Summit at the Southside Community Association in partnership with NAU’s Institute for Leadership, and reminded the public that tickets were available for Ms. Cleo’s Tea Party.

Councilmember Matthews also attended the tourism listening session, noting it was informative and insightful to hear perspectives on Flagstaff’s story and image.

Councilmember McCarthy shared that he attended the memorial service for Paul Babbitt, describing it as a moving event.

Mayor Daggett thanked Paul Babbitt Jr. for his contributions, particularly in helping make City Hall a reality.