TUESDAY, FEBRUARY 14, 2017
COUNCIL CHAMBERS
211 WEST ASPEN
6:00 P.M.
Mayor Evans called the Special Meeting of February 14, 2017, to order at 6:00 p.m.
The audience and City Council recited to Pledge of Allegiance.
| NOTE: One or more Councilmembers may be in attendance telephonically or by other technological means. |
| PRESENT: MAYOR EVANS VICE MAYOR WHELAN COUNCILMEMBER BAROTZ COUNCILMEMBER MCCARTHY COUNCILMEMBER ODEGAARD COUNCILMEMBER OVERTON COUNCILMEMBER PUTZOVA |
ABSENT: NONE |
Public Participation enables the public to address the council about items that are not on the prepared agenda. Anyone wishing to comment at the meeting is asked to fill out a speaker card and submit it to the recording clerk. When the item comes up on the agenda, your name will be called. You may address the Council up to three times throughout the meeting, including comments made during Public Participation. Please limit your remarks to three minutes per item to allow everyone to have an opportunity to speak. At the discretion of the Chair, ten or more persons present at the meeting and wishing to speak may appoint a representative who may have no more than fifteen minutes to speak.
None
The following individuals spoke in support of Prop 414 and against a special election:
•Luis Fernandez
•Frankie Beesley
•Kathleen C. Petty
•Gerardo Alvarado
•Sandra Lubarsky
•Brittain Davis
•Marcus Ford
•Travis Lane
•Alycia Lewis
•Cassi Reynolds
•Brooke Fulton
•Kelly Poe Wilson
•Arturo Magana
•Frankie Beesley
•Maria Becerva
•Bobbi Wilson
•David Carlile
•Gary Cole
•Robert Schehr
•Emily Melborn
•Tory Syracuse, representing Friends of Flagstaff’s Future
•Jim Cornelius
•Marilyn Weissman
•Richard Lester
•Sharon Baudelaire
•Dustin Winger
•Leslie Owen
•Adrah Para Finiuk
•Dulce Madrid
•Sarah Wilce
•Greta Murphy
•Jody Clements
•Adam Shimoni
Comments received included:
•People voted for Prop 414 and knew what they were voting for
•Referendum would eliminate some of the most important things; it holds businesses accountable
•Having an office to investigate fair labor and due process (wage theft) is very important for them
•People already voted; this should not be happening
•Discussion should be about moving from $15/hour to $18/hour--that is what is needed to sustain in Flagstaff
•When campaign was running, why were they not out talking about this
•He is a construction worker; if his wages go down so others could earn more, he would do it in a second
•Researched prior initiatives and referendums in Flagstaff
•Have had three referendums over the years and two initiatives
•The two initiatives passed and they were last November
•Now they have a third initiative; is troubling because it 1) seeks to overturn the will of the people as expressed three months ago; and 2) asks for a special election, and the City has never had a special election to vote on an initiative. Special elections have lower voter turnout
•Voted for 206 and 414; he’s proud of his vote
•Classified workers in the district will see a jump
•Elevate Flagstaff’s proposal is not a compromise
•Since an amendment has to stay true to the intent and he does not believe Elevate Flagstaff’s proposal does, it should not be put on the ballot
•Last November voters went to the polls at a General Election, majority decided that by 2021 the minimum wage should be $15/hour
•This was not the outcome the Chamber wanted; now they want a “do over”
•Granting a special election sets a dangerous precedence
•Special election is costly and undemocratic
•Most important decisions need to be made in the fashion of highest turnout -- General Election
•Is a former employee of Quality Connections; he opposes a special election
•Was shocked that members of Quality Connections supported a special election
•Vital that they uphold compassion for their employees
•Fears that Quality Connection being in favor of a special election is only going to preserve the high turnover rate that exists there
•In October 2016, they were to be receiving a $1/hour increase; believe they are manipulating funds
•Does not support an election, but if they do go with an election, please do not hold a special election
•Instead of the energy being used to pit the community against the disabled members, why not use that energy in pushing the state for more funding
•There’s a direct correlation between poverty and crime, especially domestic violence, and Prop 414 would reduce rates of crime
•Would not support paying $150,000 for a special election, but would support amending the ordinance to show down the process
•Wage theft needs to be addressed
•This is not what a democracy looks like
•Those asking for a special election are pitting the disabled community against the rest and lied
•Time for the business community to become creative and resource with their budgets
•She spoke with many businesses, and business owners were not happy with the final draft of the new initiative
•Questions the legitimacy of the signatures and how they were obtained
•Claims made by signature gatherers were not true
•Opposes special election
•Sympathizes with the nonprofits; need to hold Legislature’s feet to fire
•Revenue that the City is going to get from wage increase will benefit the City
•She voted for Prop 414 and for many on Council
•Chose to investigate one organization - Hozhoni - and found that their CEO reportedly worked 40 hours a week and made $173,000
•Seattle’s experience shows that it won’t affect businesses
•Don’t rush into a special election with a poorly drafted amendment
•Why are all of the protections being removed? Prop 414 had local enforcement which was good
•Her father died and her mother was deported to Mexico; this country made her an orphan
•She has been living off of her old income for 15 years
•Those on Council that have a business should recuse themselves
•Amend the current law; the language chosen in the new initiative was disrespectful, intimidating, and inappropriate
•Since the new initiative was filed all they have seen is division in the community
•Louis J. Baisile, Jr., Founder of Wildflower Bread Company
•Gabor Kovacs
•Anthea Hajjar
•Russell Goddard
•Mary Goddard
•Lisa Koronkiewicz
•Evan Hawbaker
•David Ledbetter
•Rick Hargrove
•David Hirsch (Goodwill Industries)
•Jesse Melsere
•Paul Deasy (with Bridging Flagstaff)
•Armando Bernasconi
•Brandon Martaw
•Nathan Martinez
•Karan Patel
•Kathleen Knapp
•Jim Taylor
•John Conley
•Ash Patel
•Minesh Patel
•Robin Prema
•Gus Millan
•Kathleen C. Petty
•Kim Kalas
•Maria Becerva
•Veronica & Jay Gutierres
•Stuart McDaniel
•Nancy Baca
•Donald R. Harrington
•Lee Sullivan
•Deborah L. Farnam
•Andrew Grieder
•Cindy May
•Robert Bocouriegra
•Ali Gomez
•Monica Attridge
•Mattie Harrington
•John Freer
Comments received included:
•Business has been in Flagstaff since 2010
•In Kansas City, in 2015, a white paper was written by Dr. David McPherson, about a similar proposal from $7.65/hour to $15/hour - the study forecasted 3,200 jobs lost.
•Wildflower’s lowest paid employee receives $31,000 at full-time; average is $78,000
•Wages are already having an effect on businesses
•Need to amend
•Hope Council can find a way to create the best middle of the road
•He has a part-time gig that pays less than $15/hour
•$15/hour is wrong; it was presented wrong; the concept is wrong
•Although 414 was meant to help the working poor, it will mean small businesses will close and those providing the services will be out of work
•Will leave 800+ without special needs services
•Clients will be forced to find homes outside of Flagstaff, away from families and friends
•Flagstaff will be an exclusive community, telling those with disabilities that they are not welcome
•He e-mailed a copy of what was read; Peaks Health and Revitalization
•Nonprofit with 180 employees of all skills levels
•185 patients and residents
•Performed a cost analysis on Prop 414 over the next 4.5 years; increase in payroll starting 7/1 is an additional $75,000 a year; 2018 $159,000; 2019 $168,000; 2020 additional $344,000; and 2021 $562,000. It will cost them $1.3 million over the next 4.5 years
•They operate on a margin of 3.3%; by the time they get to 2021 their margin is reduced by 4%
•She was poor at one point in her life, as a single mom working two jobs
•She also understood the initiative of working hard. Both of her kids now have Masters Degrees and three jobs
•Prop 414 is an ideology; it is a reality for the elderly, midlife or young people
•Asked Councilmember Putzova to recuse herself since she wrote Prop 414
•Understood that some worked hard on Prop 414; however it is severely flawed
•Thought that once the Council heard that this Prop would have this type of impact that it would never become this battle
•Thought that our human beings would be valued more than money
•Disgusted to know that most of what she is saying is falling on deaf ears
•Tells them they don’t wish to serve all of Flagstaff
•The City’s motto should be “out of sight, out of mind”
•People voted for Prop 414 but many do not agree, or they wouldn’t be there tonight
•Waiting longer than a special election will be too late
•Resident for ten years; currently purchasing first home in Sunnyside
•Has been in two different care services over last six years; can say they are dramatically underfunded
•State of Arizona needs to increase funding for special services
•Workers are saddled with massive responsibilities
•When he voted on these issues, he knew that both of them did not make sense at the same time
•Never opposed to minimum wage
•Has not received minimum wage except when he was in high school
•Respects democratic process, but echoes concerns raised
•If he was in the shoes of Council he would push it back to the voters, and do it sooner rather than later
•Owner of an agency that serves disabled community (Abrevo)
•This increase in cost is not likely to be funded by the Legislature
•Agencies like his are now forced to examine their ability to continue services
•They have lost money for the last three years; Prop 414 will break their back
•Encourages Council to modify the prop and also allow the special election to go forward
•For him this is about the impact that it has on businesses that employ people with disabilities
•For 45 years he has been a voice for those without a voice
•At Goodwill they serve all of northern Arizona with 200 team members on the payroll, 160 of which are full time equivalents with benefits
•22% of their employees have disabilities and the others are people with other barriers to employment
•The day after the election they made the decision to maintain fulltime employment and benefits
•Less than two months into the new year, they are teetering on the brink
•Rolled out over five years it means an increase of $1.5 million, far outpacing their ability to grow and provide services
•Spent this winter getting signatures and educating people; was shocked to see how many people did not understand what they were voting for
•They already have a higher minimum wage
•She helps at the Sunshine Mission; the help people coming out of homelessness by hiring and providing training to help people get off of addiction and re-engage
•This discussion is about unintended consequences
•Higher wages sounds better, but there are nonprofits that will close
•Too much too soon
•Was an immigrant with $10 in his pocket; he worked three jobs
•In 1991 he moved to Flagstaff and for five years was a resident manager, working 24/7
•He worked his way up and started a company in 2004; at one point he employed 500 people
•He currently employs 60 people and is working toward building two projects with 60 more people
•The loans and pro forma that they worked with the lenders are now thrown out of the water
•The voters voted it in; the voters are now saying they want a re-vote; let them vote
•In California over 250 companies are moving out of state; they do not want to see that happen
•Those they are trying to help are going to get hurt
•Most expedient way to address this is with a May 2017 election
•Either amend or hold a special election
•She is all for getting to a $15/hour, but it needs to happen at a slower pace
•She is a third generation Flagstaff resident; they live here because of the quality of life
•Her son has a disability for which he receives services
•She is also a site director for Head Start and they have concerns; the increased wages will impact the children they serve
•The democratic process is continuing
•There was an initiative that passed in November 2016 and now there is another; they are respectfully asking that it be placed on a special election ballot in May 2017
•Their attorneys, as well as others, believe an amendment will be challenged and there will be litigation
•She teaches economics at NAU
•While $150,000 for a special election is a huge cost, it is a bargain compared to what is going to happen to the community if they allow the long-term economic impact of 414 to truly reach its fruition
•The most vulnerable, those that are unemployed, seniors on fixed income, social security and disability, they will see their buying power decrease
•Allow an election to give the voters the opportunity to change their mind; to do better because they now know better
•Not a member of the Chamber and not a republican
•He is a local business owner and his parents were in business for 50 years
•If this special election does not occur, he won’t be in business in July
•It is not economically feasible to think that employees are getting more money; he will be out of business
•She represents many of the 865 people that will lose their jobs
•She did not get to vote because she lives outside of the City limits, but this is still her community
•She has invited people in the past, and does so now, to come and look at her financials and take a tour
•They have not spent time attacking people that are promoting keeping Prop 414 the way it is
•She is trying to buy a home here, and cannot afford it, and she makes more than minimum wage
•They need to look at why it costs so much to live here
•Why was Prop 414 even on the ballot?
A break was taken from 7:40 p.m. to 7:53 p.m.
Discussion was held about the meeting held in December at the Chamber of Commerce offices about addressing the timeline. Mayor Evans said that when they left that meeting it was agreed that while some supported $15/hour and some did not, the biggest issue was the timeline and they would amend. She asked when it was decided to move forward with a new initiative.
Vice Mayor Whelan asked, if $15/hour was the focus, why an election in November of 2018 would not suffice. Mr. McDaniel said that the $2/hour escalation is a big issue as well. That is why there are so many people at the meeting. Damages will have been done to wait for a November 2018 election.
Brief discussion was held on a comment made that a sister with a disability just had their pay reduced to less than minimum wage. Ms. Attridge said that there is a section of FLSA called 14C that allows people with disabilities to be paid a wage commensurate with their productivity, but they have to go through steps to certify that. She suggested that may be what happened in this instance.
•Leah Claus
•Alejandra Espinosa
•Loren Grady
•Kathy Fraser
•Julianna Zangari
•Peter Fule
•Dawn Dyer
•Gwendolyn Waring
•Emily Davalos
•Kyle Stocks
•Moran Henn
•Jacob Erickson
•Rosy Cedillo
•Phil Goldblatt
•Tyler Bernard
•Kim Curtis
•Carol B. Thompson
•Jody Clements
•Charlie Silver
•Sallie Kladnik
•Lizette Melis
•Mare Schumacher
•Luis Fernandez
•Joel Kane
•Ron Kelley
•Marta Serpas-Guardado
•Greta Murphy
•Chelsea Green
•Sean Parson
•Matthew Morgan
•Cassi L. Reynolds
•Gwendolyn Waring
•Robert Hack
Written comments were received from the following individuals in support of a special election:
•Brett Wham
•Todd Flores
•Maria Plachutin
•Andrew Grieder
•Mary Haynie
•Cynthia Mackin
•Robert Miller
•Chris Lloyd
•Stephen Jones
•Jay McCollum
•Vanessa Bocanegra
•Mattie Harrington
•Sophia Katz
•Marat Katz
•Roark Wolfe
•Tim Hansen
•Lin Wolfe
•Sandra K. O'Brien
•Mike Konefal
•Lynda Fleischer
•Michael N. Knapp
•Gala Klein
•Brad Hagan
•Lisa Lamberson
•Bryan King
•Arturo Solis
•Cindy Harris
•Gloyes Dale Lemons
•Jane Lemons
•Valerie Langin
•Brian Nance
•Kasey Nance
•Desire Sanchez
•Karen Schramm
Moved by Councilmember Charlie Odegaard, seconded by Councilmember Scott Overton to read Ordinance No. 2017-03 by title only for the first time.
Councilmember Overton said that as he evaluates this issue in detail, the Counci's role is a very narrow one. As a Councilmember member, he has to sincerely take the Voter Protection Act and the initiative process into account simply because this is a deviation of a citzen initiative process. He thinks that the Council's role is limited inthe amendment process and it puts a tremendous weight on a group of 7. It will be difficult coming to a super majority vote. He said that he would support the special election and strongly encouraged the Council to do that. If a special election is not held, then it is on the November 2018 ballot, and this is a time sensitive issue.
Councilmember McCarthy said that he has a similar concern that if this goes to election in May it puts the public in a difficult position. With the way the new initiative was written, they are only given a choice of keeping 414 as is or they have the option of completely gutting it. He has a problem with the changes made with the initiative. He believed that there were many people in the community that wanted a compromise initiative. His concern is that they got tricked.
Vice Mayor Whelan thanked everyone for staying. Prop 414 was brought to the voters with 54% of the vote at a time when voters were engaged and willing to cast their vote. After that election, and the effect of 414 and 206 together, most of them realized there would be a problem. They sat down and crunched the numbers and called for meetings. She was at the meeting with the Mayor and they were clear on what was spoken in the vote and what needed to happen; they needed to come to the middle. They walked away from that meeting thinking one thing was going to happen, but the next they heard was another proposition coming that gutted 414.
She said that the solution never happened because they did the same thing this time around that Prop 414 was accused of doing. Not everyone was involved in the conversation. Stakeholders were not put at the same table. Initiatives were suggested, taken away and brought back under some magical theme. Now they are faced with a decision about where the City wants to go.
She said that some say they need to do a special election; some people say that the special election will then them what to do, but it won't. It will not get them to $15/hour as the people have said. It will take away all of that vote. She said that she is glad that they feel unsettled because if this was comfortable, they would be in trouble.
She said that because the same process was done in the Sustainable Wage Act they cannot come to an answer that the City deserves. She believed that what they need to do is not set a precedent that when someone is upset about something they get to re-vote. She truly believed that asking staff to come back with an amendment is the right thing to do.
Vote: 2 - 5
- AYE:
-
Councilmember Scott Overton
Councilmember Charlie Odegaard
Councilmember McCarthy thanked everyone for their comments. It has been a polarizing issue, either seen as very important or a crush to the economy. In his opinion it is obvious that the Council needs to show leadership. To him the question is when it should be put on the ballot. A special election will cost the City $150,000 and would have a low turnout. His suggestion is to not call a special, low-turnout election. He believes that the Council should further the purpose of Prop 414 by modifying the implementation timeline, to give voters what they voted for, but slow down the timeline. To further the purpose he suggested that the ordinance be amended to increase minimum wage to $15.01, where it is currently $15. The repeal would then be on the November 2018 ballot.
Councilmember Odegaard also thanked the public for their participation. He said that it was such a disappointment that they did not have this discussion last fall. He values that the voters voted for Prop 414 and agrees that everyone knew what they voted on. He also acknowledges that it passed; he does not want to change that. He also took an oath as an elected official to uphold the laws of the Constitution, which includes the Voter Protection Act, and he will not be in favor of changing anything with 414.
He said that there is also a process that citizens can go through to have an election to make a change; they do not want to change that process. A citizen initiative has come forward and it was asked to be put on the May 2017 election cycle. He was ready to make a motion to put it on a May 2017 ballot.
Councilmember Putzova said that she had no interest in holding a special election in May. She believed it was important to hold their elections when they have a lot of their voters participate. The last single-issue election brought 35% of the voters out; the last general election brought 76%. She said that she did not think they should do anything that is unconstitutional. She would support amendments to further the intent and she requested that they get their legal team to craft the kind of amendment that would further the intent.
She said that the only reason this issue is divisive is because they are finally talking about it. They started talking about it in 2014 and 2015, and some organizations decided to stay away. It is divisive because there are a lot of people whose voices are not heard and are afraid to speak. She said that there have been comments that Prop 414 was not written carefully, but it was written by the same people that wrote 206, which most everyone seemed to have supported.
Moved by Mayor Coral J. Evans, seconded by Vice Mayor Jamie Whelan to go with Option 2, to direct legal staff to go back and draft an ordinance that would allow them to further the intent of 414, understanding that the $2/hour jump in July is an issue and they do not want to see that happen.
Mayor Evans thanked everyone for attending. She said that she echoed a lot of what the Vice Mayor said; it has been a difficult discussion. She said that she did not support 414, but she believes in democracy. The $4/hour jump in six months is going to be difficult. She has worked two, sometimes three, jobs for the last 30 years and she has actually been saddened to see what has happened because of this.
She said that at the meeting in December, the leadership at the table was clear that they were divided on 414, but they wanted to do what was right. It was strongly discussed that an adjustment to the timeline could be supported by everyone. They left the table understanding that was the direction. The holidays passed and the next thing they heard was the new Sustainable Wages Act. The leadership that brought that forward did the City a disservice. They took a simple fix and turned it into a huge discussion.
Councilmember Overton said that reminded Council that in order to amend, the threshold is a super majority vote. Six of seven members are going to have to agree and that is extremely difficult to get to.
Councilmember Putzova said that the special election was really about when it is appropriate for the voters to cast their vote and what elections give them the best representation of the community values. The Voter Protection Act is an important law and they can operate within that legal framework and further the intent.
Councilmember Odegaard said that he had the provilege of seeing a couple of legal opinions that they had only one legal path, to allow for the special election or have it go to the November 2018 ballot. It was noted that anything discussed in executive session could not be discussed in open session. Mr. Solomon noted that such opinion did not come from his office. Councilmember Odegaard said that he took the oath, sworn under God, serious and now he is being asked, through peer pressure, to throw that oath out. He said that he was disheartened by what happened tonight.
Vice Mayor Whelan said that she saw it differently. She was hearing that Councilmember Odegaard felt they should not go with Option 2 because it would be the Council interjecting into the process. However, by calling a special election, the Council would be interjecting itself into that process.
Councilmember Overton said that, to him, writing legislation is different than calling a special election at the request of a lot of people.
Vote: 6 - 1
- NAY:
-
Councilmember Scott Overton
MAYOR
ATTEST:
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CITY CLERK