Moved by Vice Mayor Celia Barotz, seconded by Councilmember Karla Brewster to approve the minutes of the City Council Combined Special Meeting/Work Session of May 31, 2016; and Regular Meeting of June 21, 2016.

Vote: 7 - 0 - Unanimously

The following individuals addressed the Council regarding this item:

•Maury Herman
•Charlie Silver

Comments received included:

•They are talking about a City process; the development will no doubt go to the judicial system, but will pass through the Board of Adjustment.
•It is important to have independent, critically-minded individuals
•Encouraged Council to consider diversity, gender, experience, background when making their appointment

Moved by Councilmember Scott Overton, seconded by Mayor Jerry Nabours to appoint Ande Burke to the Board of Adjustment, with a term expiring May 2019.

Councilmember Putzova asked Ms. Burke to explain her interest in serving on this Board. Ms. Burke came forward, stating that she has been in Flagstaff for 14 years and involved in a variety of community service work. She wanted an opportunity to serve in this important appointment, and believed she had the skills necessary to make decisions related to everything that the Board covers.

Vote: 7 - 0 - Unanimously

Moved by Mayor Jerry Nabours, seconded by Councilmember Scott Overton to appoint Will Calstrom to the Board of Adjustment with a term expiring May 2019.

Vote: 7 - 0 - Unanimously

Mayor Nabours thanked everyone that applied for this position and for their willingness to serve.

Moved by Vice Mayor Celia Barotz, seconded by Councilmember Scott Overton to appoint Chris Shields to the Airport Commission with a term expiring October 2017.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Jeff Oravits, seconded by Councilmember Scott Overton to appoint Jill Christensen to the Beautification and Public Art Commission with a term expiring June 2019.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Scott Overton, seconded by Councilmember Jeff Oravits to appoint Erin Joyce to the Beautification and Public Art Commission with a term expiring June 2019.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Scott Overton, seconded by Councilmember Jeff Oravits to appoint Caleb Schiff to the Tourism Commission with a term expiring January 2017.

Vote: 7 - 0 - Unanimously

Mayor Nabours opened the Public Hearing for all of the following liquor license applications. He noted that the Community Development, Police, and Sales Tax departments had reviewed the applications and had submitted no objections to their approval. There being no public input, the Public Hearing was closed.

Moved by Councilmember Jeff Oravits, seconded by Councilmember Karla Brewster to forward all three liquor license applications to the State with recommendations for approval.

Vote: 7 - 0 - Unanimously

Mayor Nabours requested that item 9-E, City Attorney appointment and contract, be removed from the Consent Agenda.

Moved by Councilmember Scott Overton, seconded by Councilmember Karla Brewster to approve Consent Items 9-A through 9-D.

Vote: 7 - 0 - Unanimously

Moved by Mayor Jerry Nabours, seconded by Councilmember Jeff Oravits to appoint Sterling Solomon as the City Attorney on the terms and conditions of the agreement set forth in the agenda packet.

Councilmember Putzova asked in what way the contract was different than that of Michelle D'Andrea's. Ms. Anderson replied that it included the same salary, but did not include the $5,000 for compensation contribution and does include a $350 per month auto allowance.

Mayor Nabours noted that it was a one-year contract, subject to renewal. Vice Mayor Barotz noted that it has an evergreen clause so it would roll over. She asked Ms. Anderson and Mr. Solomon to meet at least three months before this time next year so they may revisit the issue.

Vote: 7 - 0 - Unanimously

Moved by Vice Mayor Celia Barotz, seconded by Councilmember Coral Evans to reappoint the following individuals: Hon. Christin Brown; Hon. Paul Christian; Hon. John Lamb; Hon. Gerald McCafferty; Hon. Susan Slasor; and appoint the following individuals: Charles Adornetto, Charles Davies, Michael Goimarac and James Speed, all as Magistrate Pro Tems for a two-year term beginning August 1, 2016, to serve in an on-call capacity.

Vote: 7 - 0 - Unanimously

Planning Development Manager Neil Gullickson briefly reviewed this application for final plat approval, noting that it was a four lot industrial subdivision in the Research and Development Zone, consisting of 29.19 acres. As there was some confusion on exactly what property was included, staff was asked to obtain a better map and bring this back to the 6:00 p.m. portion of the meeting for further consideration.

Moved by Vice Mayor Celia Barotz, seconded by Councilmember Coral Evans to approve the street closure at Aspen Avenue between Beaver Street and Leroux Street on August 20, 2016, from 8:00 a.m. to 6:00 p.m. to celebrate the Orpheum's 99th birthday.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Jeff Oravits, seconded by Councilmember Karla Brewster to read Ordinance No. 2016-30 by title only for the final time.

Vote: 7 - 0 - Unanimously

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF AMENDING THE FLAGSTAFF CITY CODE, TITLE 2, BOARDS AND COMMISSIONS, BY AMENDING CHAPTER 2-02, BUILDING AND FIRE CODE BOARD OF APPEALS; CHAPTER 2-04, WATER COMMISSION; CHAPTER 2-08, COMMISSION ON DIVERSITY AWARENESS; CHAPTER 2-10, BOARD OF ADJUSTMENT; CHAPTER 2-11, FLAGSTAFF AIRPORT COMMISSION; CHAPTER 2-12, TRANSPORTATION COMMISSION; CHAPTER 2-14, BEAUTIFICATION AND PUBLIC ART COMMISSION; CHAPTER 2-19, HERITAGE PRESERVATION COMMISSION; AND CHAPTER 2-20, OPEN SPACES COMMISSION, THEREOF; PROVIDING FOR SEVERABILITY, AUTHORITY FOR CLERICAL CORRECTIONS, AND ESTABLISHING AN EFFECTIVE DATE

Moved by Councilmember Jeff Oravits, seconded by Councilmember Karla Brewster to adopt Ordinance No. 2016-30.

Vote: 7 - 0 - Unanimously

Kathryn Jim, President of the Northern Arizona Pride Association, came forward to thank the Council for their support of the 20th Annual Pride in the Pines held a week ago, and presented the Council with their Rainbow Flag which had been flown at City Hall. She also thanked Mr. Copley for his due diligence in working with them to allow for the flag to be raised in front of 300 people. She said that it made a statement, especially after the recent events in Orlando.

Caleb McClure, Northland Family Health Center, spoke regarding the Arizona Safe House Alliance to help prevent sexual aggression.

Mr. Gullickson provided a clearer map for the Council and reviewed the location of this development. He said that it went before the IDS on May 31, 2016, and the zoning was still Research and Development.

Moved by Councilmember Scott Overton, seconded by Councilmember Karla Brewster to approve the final plat, and to authorize the Mayor to sign both the plat and the City/Subdivider Agreement when notified by the Development Review Board that all conditions have been met and documents are ready for recording.

Vote: 7 - 0 - Unanimously

Finance Director Brandi Suda briefly reviewed the property tax ordinance, noting this was the second read and adoption.

Moved by Councilmember Jeff Oravits, seconded by Councilmember Karla Brewster to read Ordinance No. 2016-27 by title only for the final time.

Vote: 4 - 3

NAY:

Vice Mayor Celia Barotz
Councilmember Coral Evans
Councilmember Eva Putzova

Moved by Councilmember Jeff Oravits, seconded by Councilmember Karla Brewster to adopt Ordinance No. 2016-27.

Vote: 4 - 3

NAY:

Vice Mayor Celia Barotz
Councilmember Coral Evans
Councilmember Eva Putzova

Assistant to the City Manager Stephanie Smith began a PowerPoint presentation by answering questions that had been asked previously.

TRANSIT TAX

1. What is the estimated revenue to be collected from the transit tax? She said that they estimate that the transit tax will collect approximately $5.5 million a year in 2020; the 2016 transit tax estimate is approximately $5.25 million.

2. What is the total cost to provide transit services? Mountain Line's current annual operating budget is approximately $7.5 million. Their capital budget varies, but averages about $5 million. Transit is supported by the City's transit tax, grants, other agencies and rider fares.

3. May the City include estimated revenue collection in the ballot question? No. This would create ambiguity because voters would be asked to approve an estimate, which may or may not be right. Tax revenue varies and is dependent on the economy.

Mayor Nabours said that the obvious questions that a voter would ask if whether NAIPTA would give back money is they had great sales tax, more than anticipated. NAIPTA's Director Jeff Meilbeck said that they do an ongoing planning process and every five years they officially update and adopt a new plan. That plan reflects the changing reality of what is happening in Flagstaff. Even though they had the great recession and revenues dropped 30% in the first two years they were able to deliver on everything. They would do that same process. He did not know of a situation when they would say they have too much money and are going to send it back.

COURT BOND PROJECT

1. What is the impact of the $12 million courthouse bond project to the taxpayer?
     The City's total secondary property tax rate is 0.8366.
     Average of $251 annually for a residential property valued at $300,000
     Average of $1,506 annually for a commercial property valued at $1 million
     Impact: Estimate to be $0.1204 per $100 of assessed value - Average of $36 annual for a residential property valued at $300,000
     Average of $217 for commercial property valued at $1 million
2. Due to the anticipated future unused bonding capacity available, approval of this ballot question should not result in an increase in the secondary property tax rate. It would stay at 0.8366.
3. If this didn't get placed on the ballot, when would that rate go down? Currently FY2022 and decline further as debt is retired. Current projections show all general obligation debt being paid off in FY2037 with a rate of $0.0900 per $100 of assessed value.
4. May the City Council include sales of the existing property in the ballot question? City Charter provides for Council to sell property after advertisement through a public, competitive bid process. A ballot question may only ask one question.
5. Given our recent history of refinancing our debt, what do you expect our total interest will be if we bond for $12 million? They talked with finance advisors and debt service interest would be about $5 million over a 20-year period.
6. What do we pay in fees to get the debt? It varies by the amount of the bond they are selling. A bond such as this, he would estimate between $90,000 and $100,000 for the financial advisor, same for the underwriter, and bond counsel a little less, about $50,000.

Councilmember Putzova asked if it is less expensive for taxpayers to fund through a bond issue, or through a primary tax. Mr. Tadder said that looking at time, value and money, if they have to wait to build up funds to build a courthouse, the costs will increase. There are many things to look at, but it would cost less if they paid as they go.

TIMELINE FOR THE PUBLICITY PAMPHLET
     Must be finalized by August 11
     Translated, prepared, printed and mailed
     Mailed October 4
     Notice of Request for Arguments published in paper on 7/10, 7/17 and 7/24

Councilmember Oravits said that when they are describing the location, it is important to describe the old jailhouse. Vice Mayor Barotz said that it would be good to have a precise map for those that may not be familiar with that site.

Mayor Nabours asked Mr. Jacobson if they were under any type of order or potential order from the Arizona Supreme Court, or other agency, with some direction to do something about the courthouse. Mr. Jacobson said that they are currently under a Direct Order, dating back to 1994. During the operational review deficiencies were set forth by the Supreme Court regarding the physical facilities and they put forth a "Need to Resolve and Improve". He said that they have tried to meet some of those needs, but still fall short.

Vice Mayor Barotz asked if there has ever been an effort to create a fund where the City would set aside money every year. She asked if that has occurred, if it was swept or ever gone to the voters. Mr. Jacobson said that they have been working, trying to create alternative funding. The entire project is $21.5 million, and they are looking at $12 million for bond funding. The Court Facility Fund is funded through portions of funds collected and it has been growing over the last several years. They will use that fund balace to pay for a portion, as well as borrowing against it. He said that they have looked at other options as well and the sale of the propety came before Council. They said that they are continuing to do everything possible, which is how they got to a joint project with the County that will be a significant cost savings.

Vice Mayor Barotz said that the truth is that it is a political issue. The voters do not get to see a more in-depth accounting of what Council has done that has led them here.





 

Moved by Councilmember Karla Brewster, seconded by Mayor Jerry Nabours to read Resolution No. 2016-25 by title only.

Vote: 7 - 0 - Unanimously

A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL AUTHORIZING REFERRAL OF A BALLOT QUESTION TO THE QUALIFIED ELECTORS OF THE CITY AT THE GENERAL ELECTION ON NOVEMBER 8, 2016, RELATED TO POSSIBLE CONTINUATION OF A LOCAL TRANSACTION PRIVILEGE TAX (SALES TAX), (EXCLUDING THE SALES OF FOOD AS EXEMPT BY STATE LAW), FOR A PERIOD OF TEN YEARS COMMENCING JULY 1, 2020, WITH PROCEEDS FROM THE TAX TO BE DESIGNATED FOR PUBLIC TRANSPORTATION PURPOSES

Moved by Councilmember Karla Brewster, seconded by Mayor Jerry Nabours to adopt Resolution No. 2016-25.

Vote: 7 - 0 - Unanimously

Moved by Councilmember Scott Overton, seconded by Councilmember Karla Brewster to read Resolution No. 2016-27 by title only.

Councilmember Putzova said that she would like to support this, but she wanted the public to know that in her mind this is not an example of good governing. They are asking for $12 million because they are unable to moderately increase prperty taxes to support the regular capital expenditures that a City of this size should expect to have.

She hoped that when they are doing the education part they are going to be clear that this has not been the only option of how to fund this project, but they chose over time to not fund their infrastructure properly.

Councilmember Oravits said that he would support this. He sees it different; they are giving the voters of Flagstaff a choice versus an automatic increase.

Councilmember Evans said that she thought it was great to ask the voters. In reality, the courthouse is something they need for everyday business. They just heard there are guidelines that will dictate whether they can continue to operate. If for some reason the voters do not accept this, they will still have the same issue of how to fund it. They need to work on that before they get sued and be forced to do something about it.

Vice Mayor Barotz said that she was alarmed that they were asking the voters to pay $5 million in interest on a $12 million bond. The need is not the issue. She looks back on all of the budget sessions they have sat through and about how they might have addressed this. She was deeply troubled with the paradigm.

Vote: 7 - 0 - Unanimously

A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL AUTHORIZING REFERRAL OF A BALLOT QUESTION TO THE QUALIFIED ELECTORS OF THE CITY AT THE GENERAL ELECTION ON NOVEMBER 8, 2016, WITH RESPECT TO A TEMPORARY INCREASE TO THE CITY’S SECONDARY PROPERTY TAX AND AUTHORIZATION FOR THE SALE AND ISSUANCE OF BONDS OF THE CITY OF FLAGSTAF, ARIZONA IN A PRINCIPAL AMOUNT UP TO $12,000,000 WITH THE PROCEEDS TO BE DESIGNATED FOR PURPOSES OF MUNICIPAL COURT FACILITIES

Moved by Councilmember Karla Brewster, seconded by Mayor Jerry Nabours to adopt Resolution No. 2016-27.

Vote: 7 - 0 - Unanimously

City Clerk Elizabeth Burke briefly reviewed this resolution, noting that it was a formal Calling of the Election that outlines the generalities of the overall election process, and addresses the potential ballot language and information pamphlet process.

Moved by Vice Mayor Celia Barotz, seconded by Councilmember Eva Putzova to read Resolution No. 2016-26 by title only.

Vote: 7 - 0 - Unanimously

RESOLUTION OF THE COUNCIL OF THE CITY OF FLAGSTAFF, ARIZONA, CALLING A SPECIAL ELECTION TO BE HELD ON NOVEMBER 8, 2016, IN CONJUNCTION WITH THE CITY’S GENERAL ELECTION, TO SUBMIT POTENTIAL QUESTIONS TO THE REGISTERED VOTERS OF FLAGSTAFF REGARDING POSSIBLE CONTINUATION OF A LOCAL TRANSACTION PRIVILEGE TAX (SALES TAX), AND REGARDING THE POSSIBLE ISSUANCE OF BONDS IN A PRINCIPAL AMOUNT OF $12,000,000 FOR A MUNICIPAL COURT FACILITIES PROJECT, A POTENTIAL QUESTION PROPOSED BY INITIATIVE ADDING A NEW TITLE 15, MINIMUM WAGE LAW, TO THE FLAGSTAFF CITY CODE AND A POTENTIAL QUESTION PROPOSED BY INITIATIVE TO PRESERVE CITY-OWNED REAL PROPERTY SOUTH OF BUFFALO AND MCPHERSON PARKS AS OPEN SPACE

Moved by Vice Mayor Celia Barotz, seconded by Councilmember Scott Overton to adopt Resolution No. 2016-26.

Vote: 7 - 0 - Unanimously

Sustainability Manager Nicole Woodman briefly reviewed this contract, noting that she would be bringing it back for formal action after the Council break. She said that this contract allows them to buy 373 kw of electric power from Hoover Dam, which is about 2% of the City's annual consumption. The City could save from $15,000 to $20,000 a year through this. She said that it is a 50-year contract, which is typical for energy contracts with government, and Arizona Public Service is in full agreement.

Ms. Woodman said that the one variable is the amount of energy they can continue. If there were curtailments, then they would default to their APS contracts, which would be automatically done.

Vice Mayor Barotz said that she was requesting a FAIR to receive a presentation by Community Development about whether they should re-examine their Zoning Code provisions related to the dispensaries for marijuana.

Dave Stilley, partner in High Moutnain Health, said that they received an overview in the e-mail provided. They have 52 employees, all paid well above the Flagstaff average wage with full benefits. He said that the ADHS oversees the marijuana program and has indicated a willingness to allow facilities to move from one locality to another, which has occurred several times recently. With the looming possibility of recreational use being on the ballot, he is concerned. His job, as a guy involved in the industry and living in his town, is to enlighten them about the industry and related consequences, such as they have seen in Colorado.

After further discussion, consensus of Council was to move this forward to a Work Session agenda.

Councilmember Evans requested information from the Police Department on whether they would have the capability to allow people to text for assistance, particularly after the Orlando shooting. She would like to receive a CCR on that possibility, and if it is not possible, she would like a Work Session to discuss it further.

Mr. Copley reminded everyone that the next Council meeting would be held on August 16. The internal packet would go out on August 5, and published the following Friday.

Mayor Nabours requested three FAIR items as follows:

1) A Work Session on what zoning laws they have and what sign codes they have that affect donation bins in shopping centers, whether they are allowed or not, the restrictions, etc.
2) A Work Session to consider changing the policy re water meters required for duplex and triplex buildings.
3) Discussion on the parcel of land on the north edge of what they have referred to as Thorpe Park, which from the old plat map is currently north of the soccer fields, next to Clark Homes. They have talked about this property informally as an area for affordable housing, tax credit housing, senior affordable housing. At the FHA they have been talking about it for several years and in light of the recent issues that arose on the public works yard he would like to bring that to Council to see if Council favors the use of that parcel for affordable housing of if they would have the same issue. Vice Mayor Barotz asked that they include a map with the information.

Councilmember Putzova noted that she has not seen her last request come forward regarding solidifying the use of Thorpe Park on the Working Calendar.