Others present: City Manager Josh Copley and City Attorney Sterling Solomon.

Moved by Councilmember Eva Putzova, seconded by Vice Mayor Jamie Whelan to approve the minutes of the Regular Council Meeting of February 21, 2017.

Vote: 7 - 0 - Unanimously

Mayor Evans opened the public hearing for all three liquor license applications. There being no public input, the public hearing was closed.

Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to forward a recommendation to the state for approval of all three liquor license applications.

Vote: 7 - 0 - Unanimously

Councilmember McCarthy, in referring to the staff report, asked if the statement that this project "does not conform to suburban designation" means that the land is not compliant with the Regional Plan, which is advisory, but it is in compliance with the Zoning Code, which is binding. Ms. Antol replied that was correct.

Councilmember McCarthy said that this is a low-density plat. In the future, when they are trying to promote affordable housing, they should be promoting smaller lots; however, he would vote yes for this as the proposal is in compliance with the Zoning Code. Councilmember Barotz said that they also need to be sensitive to the fact that they cannot require smaller lots.

Councilmember Odegaard asked about the improvements to Woody Mountain Road. Ms. Antol said that right now it is dirt. It will be improved with curb, gutter and parkway setting, and they will be providing the City with additional right-of-way as it becomes a future arterial, and also for part of the Flagstaff Urban Trail System (FUTS) along their property.

Vice Mayor Whelan asked for clarification on the sum of money being provided for their share of the light. Ms. Antol said that the City calculated their proportionate share, based on the estimated amount of traffic that their project will generate. They work through the traffic engineering manuals to determine what their share will be toward the intersection. There have been other contributions already made from the City, Presidio and Timber Sky, and they are working toward building that signal in the future. She said that ADOT will be the one to determine when the light is warranted.

Moved by Councilmember Jim McCarthy, seconded by Councilmember Charlie Odegaard to approve the preliminary plat with the conditions outlined in the staff summary (1 -Typical house plans shall be submitted in conjunction with the final plat application to ensure compliance with the PRD standards elected for this subdivision; 2 - the Final Plat shall include the following language: “All individual lots areas outside of the maximum building coverage, driveways, and utilities are deemed as private open space and protected forest resources areas”; and 3 - the applicant shall submit a total of $22,466 for their proportional share of the signal at Woody Mountain Road and Route 66 prior to the approval of the final plat).

Vote: 7 - 0 - Unanimously

Project Manager Trevor Henry briefly reviewed the project. Councilmember Barotz noted that the Council would be approving a change order authority, not a change order.

Community Development Director Mark Landsiedel, referencing page 83 on the i-pads, noted that these were originally separate projects, but as they went through the design process staff thought it would be best to combine the two.

Mr. Henry said that if the contract is approved, the contract will start in mid April, with 180 calendar days, finishing up in mid October. He said that they have been meeting with the neighborhood. They met once on November 17, 2016, and all were encouraged and happy this was going through. They will have another meeting with the neighborhood once the contractor is confirmed.

Vice Mayor Whelan said that at the last budget retreat they talked about the Lockett project and she questioned why they were not including the two ends. Mr. Landsiedel said that the study they were discussing will be reviewed further at the next budget retreat. They will be bringing back options for the Council to consider. He said that is a long-term planning project, but today they have a dire infrastructure need in this location.

Moved by Councilmember Scott Overton, seconded by Councilmember Eva Putzova to 1) approve the construction contract with Sellers and Sons Inc. in the amount of $4,675,913.80, which includes Additive Alternate #1, #3 and #4, and a contract time of 180 calendar days; 2) Approve Change Order Authority to the City Manager in the amount of $452,000.00 (10% of the contract amount, less allowance); and 3) Authorize the City Manager to execute the necessary documents.

Vote: 7 - 0 - Unanimously

Councilmember Barotz suggested that a press release be done on the upcoming work since the road is in such bad condition. Mr. Copley said that staff would be coordinating with the Council to keep them and the community apprised.

Wildland Fire Manager Paul Summerfelt said that this was a multiyear agreement that allows the City to treat 100 acres of state land that is within the FWPP project footprint. The first aspect of this is to do up to 500 acres in FY17-18. He said that it is a 50/50 cost share between the City and the State. He said that the City's expenditures are dependent on the State allocating and committing their 50%. He said that this project is located in east Flagstaff, four sections out by Amberwood and Walnut Canyon.

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Jim McCarthy approve Flagstaff Watershed Protection Project (FWPP) Intergovernmental Agreement (IGA) No. 17-1 between City of Flagstaff (City) and Arizona Department of Forestry and Fire Management (DFFM).

Vote: 7 - 0 - Unanimously

Development Engineer Gary Miller said that over the last year he has taken on the agency review role for Arizona Department of Transportation, and one of the projects they have been reviewing is the project assessment for rehabilitation of the Fourth Street Bridge. He said that a project assessment is the first step in the process for any project within ADOT's jurisdiction. They look at alternatives, cost estimates for alternatives, and then a recommendation on which to follow.

He said that as this moved forward they had continuing discussions with ADOT about the opportunity to partner in the project, to look at widening and future replacement of these bridges. This Intergovernmental Agreement (IGA) takes advantage of that opportunity. He said that this amount is just the study, and includes 15% design plans.

Mr. Copley added that while the City does have local funds for construction, the lion's share will be getting this into the five-year plan for ADOT, and they will continue to work toward that goal.

Moved by Councilmember Jim McCarthy, seconded by Councilmember Charlie Odegaard approve the Intergovernmental Agreement (IGA) between the Arizona Department of Transportation (ADOT) and the City of Flagstaff in the amount of $60,000.

Vote: 7 - 0 - Unanimously

Others present: City Manager Josh Copley and City Attorney Sterling Solomon.

The following individuals spoke about the proposed amendment to Title 15:

•John Viktora
•Rob Wilson, representing Elevate Flagstaff
•Julie Pastrick, representing the Greater Flagstaff Chamber of Commerce

Comments received included:

•It is a difficult situation; trying to do no harm to either side
•Would like to see a 7-0 vote
•Elevate Flagstaff is not the Chamber of Commerce, although they are a member of Elevate Flagstaff
•The heart and soul of Elevate Flagstaff primarily are not members of the Chamber
•Elevate Flagstaff was founded to represent the wide variety of perspectives on this issue
•When they met with Council back in December they were told that an amendment to Title 15 by Council was not legal; the only solution was through a democratic process, which is what they did
•Everything happened in less than six weeks
•They solicited input from throughout the community; they heard that Prop 414 was flawed, and not just in the schedule
•Had more time been available, things would have been done differently
•Agrees that wage theft requires more attention
•After reviewing what is being proposed, he agreed with Mr. Solomon's opinion that the City's resolution does not further the cause
•Elevate Flagstaff gathered 5,865 signatures that were certified, based on Council's direction
•Elevate Flagstaff requests that as part of the discussion they share the legality before they vote on it
•Believes there are serious problems with the scheduled, enforcement, tipped employees
•Santa Fe has been used as a reference, but tipped employees in Santa Fe chose to opt out of it; they wanted to remain tipped and status quo
•Prop 414 is a flawed law that is posed to do real and lasting damage to businesses
•The City is gambling that no one will sue them if this amendment is adopted
•Represents more than 1,000 businesses and organizations, including many nonprofits
•The Chamber has heard and feels that their reputation has been degraded; they ask for a healthy conversation and agree to disagree
•If they allow Prop 414 to take effect, Flagstaff is immediately pegged by economists as a noncompetitive community and is at a disadvantage for cost of goods, cost to visit, cost to live, delivery of service, etc.
•Elevate Flagstaff followed a democratic process and obtained 9,000 signatures in three weeks. They felt a strong statement was made.

Vice Mayor Whelan said that a democratic process was followed and it will be on the ballot in November of 2018. She did not support a special election because her concern was that it would not pass. Had it not passed they would be faced with what they were faced with now. She believes that they have the opportunity to come together and figure out just what Flagstaff needs.

The following individuals spoke in favor of the amendment to Title 15:

•Paul Deasy
•Matthew Wangeman
•Dale Lemons
•Kasey Nance
•Don Harrington
•Gus Miller
•Barb McLean
•Monica Attridge
•Rick Hargrove
•Amy Phillips
•Adam Shimoni
•Andy Fernandez
•Kathleen C. Petty
•Charlie Silver
•John Conley
•Leslie Pickard
•Sarah Wilce

Comments received included:

•Economy may bounce back eventually, but the nonprofits will not
•This is a tough decision, but Council was elected to make the tough decisions
•Teaches at NAU; has lived in Flagstaff for 12 years
•If Prop 414 does not change, he does not know if he can live here anymore because of services provided to him by three agencies
•Two weeks ago a documentary about his life was released in Flagstaff
•Over 20 years his daughter has been receiving services, but was told that if something does not change they will be closing their doors
•Does not want to leave Flagstaff
•Hozhoni will have 150 clients they will be unable to provide services to
•230 employees will be looking for work
•Has a fear of public speaking, but her sister is unable to speak at all
•Hozhoni takes 24 hour care of her sister
•Represents an agency with four group homes in town
•If nothing changes, he will close all four homes and have to move from the area; he will be out of work as well
•Didn't bring his sister this time
•Wanted to thank Council for coming up with the amendment
•He has been horrified by the will of the people; the will of the people destroyed the French in the French Revolution
•You cannot expunge these people, such as Hitler did
•Amendment will give agencies time to advocate with legislators and federal government to further help them
•She is a residential site supervisor and works for Don Harrington
•She is a mother of a disabled individual who receives services from three agencies
•She wants to make roots here; Flagstaff is home
•She voted for Council; asked that they show her what they are worth by voting for the amendment
•Is concerned that the amendment will stand a legal challenge
•While they were already fighting to stay open, a group of people in Flagstaff got together and picked a minimum wage, giving no thought to how the most vulnerable citizens would be harmed, or they did not care
•Absent a miracle, they will be closing their doors
•862 staff members will lose their jobs; 835 clients, human beings, will lose their services
•Flagstaff will lose $29 million
•They recently heard the Governor tell a client of his that this is Flagstaff's problem
•Prop 206 is not going to get funded, let alone 414; it is tragic for their entire industry
•Abrio was founded in Flagstaff and serves about 100 people in their home
•Perhaps the City could fund the difference
•Her mother was disabled back when there were not services; she got into the field 45 years ago
•She and her husband have two severely disabled adults; if this goes through they will lose their day program and their services
•Everyone needs to drop their egos and focus on the well being of all of the community
•Heard Vice Mayor say she did not vote for a special election because they would not get the vote; it was a path to get the signatures and have a vote
•To make the assumptions that it would or would not pass cannot be made
•Applauds the attempt to kick back the $2, but it, too, is open to interpretation
•With these increases, rents go up, everything else goes up; there will be a lot of people out of work
•What about the skilled workers getting the same amount of money - will they get a pay increase?
•They are past 414 - this evening is to discuss the amendment; she supports the amendment

Councilmember Odegaard asked if Hozhoni would be able to survive if they did hit the $12 an hour on July 1, and there was another alternative that could be done to fix the problem. Ms. Attridge said that the numbers changed somewhat; it may be more like October or November. She said that they are also having problems with their tribal members.

Written comment cards were also received from the following individuals, in support of the amendment:

•Mattie Harrington
•Kathleen C. Petty
•Kelly Hurlbut

Councilmember Barotz thanked everyone for speaking and listening. She reminded them that the Council just saw the proposed amendment on Friday, and she would like to ask some legal questions, and was not prepared to waive privilege.

Moved by Councilmember Celia Barotz, seconded by Councilmember Eva Putzova to recess into Executive Session.

Vote: 7 - 0 - Unanimously

The Flagstaff City Council recessed Open Session at 7:10 p.m. to go into Executive Session and returned at 8:20 p.m.

Moved by Vice Mayor Jamie Whelan, seconded by Mayor Coral J. Evans to read Ordinance No. 2017-08 by title only for the first time.

Moved by Councilmember Putzova and seconded by Councilmember Barotz to amend the motion to add to paragraph A, 6. $15.50 an hour, or $2 above the state minimum wage as provided under Section 23-363, Arizona Revised Statutes, whichever is greater, on and after January 1, 2022; and change the first sentence in Section B to read January 1, 2023, instead of 2022.

Councilmember Putzova said that this further increase in 2022 would result in a net positive impact for the minimum wage workers who were at the center of Prop 414, and this would further the purpose.

Vice Mayor Whelan said that she does believe that it is important that they move this forward and she believed the citizens deserve a decision. She would like to support this and reminded them to be mindful of who they represent.

Councilmember Odegaard said that after all of the research he has done, he would be okay moving it forward so that some options could be explored.

Councilmember Putzova said that she is not interested in any further discussion, except for the schedule.

Mr. Solomon reminded Council that a vote of four would be needed to amend the motion. A break was taken from 8:35 p.m. to 8:46 p.m. to allow staff to prepare final language on which to vote.

Vote: 6-1 (Motion to Amend the Motion)
NAY Councilmember Scott Overton

Councilmember Odegaard said that he would like legal advice on the amendment. Councilmember Overton said that, with all due respect, the amendment just passed; the time for legal counsel has passed on this amendment.

Councilmember Overton said that he is looking at this through a lot of different eyes. He respects everyone's opinions, but he does not support the amendment. He is not comfortable moving into amending a voter initiative. He believes the best route is through the initiative process, which is why he thought a special election was reasonable.

Councilmember Overton said that he has sat on the Council since 2006 and he takes it personally and professionally, and he works hard at it. He has reservations with the amendment that would be different and he will not be supportive of it.

Councilmember Odegaard said that he took an oath to uphold the laws, under God, and he takes that seriously. He believes he was elected to uphold the Constitution and the Voter Protection Act.

Councilmember McCarthy said that he has the responsibility to look at what the needs of the community are, and the six hours of public testimony. He said, with regard to the Voter Protection Act, that a person may take a line here or there out of the law and amendment and try to make a case that they are violating the Constitution, but he believes that taken in its entirety, it furthers the purpose.

Vote: 6 - 1

NAY:

Councilmember Scott Overton

Interim Assistant to the City Manager Gail Jackson reviewed pending legislation. Brief discussion was held on the proposal by the Arizona Board of Regents to take a portion of the Transaction Privilege Tax (TPT), including the local government's share, that is paid by the universities and allow it to be kept by the universities. Staff was directed to draft a letter for the Mayor's signature, on behalf of the entire Council, in opposition of this bill.

Ms. Jackson noted that the federal lobbyists, Bob Holmes, is working on appointments for the Council's visit, and on March 21 he will be available via phone and will provide an update on the trip.

See Item 19 below.

Councilmember Barotz said that she would like to invite members of the Disability Commission to a meeting to discuss a possible renaming of their commission, one that would emphasize ability and not disability. Councilmember Putzova said that she would also like to reflect whether they should not be striving for something more than awareness.

Consensus of Council was to move this item forward.

Gabor Kovacs, Flagstaff, said that his understanding was that municipal identification cards are to provide benefits to illegal aliens; therefore, he asked that they do not even think about this.

Mayor Evans said that she specifically requested this as she believed that identification cards could assist the population in Flagstaff, and not just those that are illegal, but those that are legal. She said that the City of Phoenix and City of Tucson have moved forward with this as well.

Councilmember Putzova said that she supported this request and said that it was urgent.

Consensus of Council was to move this forward.

Councilmember Barotz reported that the FMPO Executive Board is working hard to strengthen the organization and make changes that they believe will enhance its productivity.

Vice Mayor Whelan said that she had the opportunity to stop by Killip Elementary School to look at the 21st Century FACTS Program, which she said was pretty amazing.

She also attended the I-40 Corridor Group, and they are interested in bringing together stakeholders, along the corridor from Winslow to Winona, exploring uses and possible impacts.

Councilmember Odegaard reported that he was at the STEM celebration last night and stopped at the Sustainable Program table. He said that they talked about glass recycling options, and he asked what is done with the glass that is collected.

Councilmember Odegaard asked for further information on how far down Woody Mountain Road the City limits go, and if they could have further discussion on that road.

He also asked about the property at the corner of Milton and Clay, and whether the City owned it. Mr. Copley reported that the City does not own it; it was sold to the adjacent property business. He said that the City is working with the property owners to improve its appearance.

Councilmember Odegaard asked for information on how the Charter amendment process works.

Mr. Copley said that staff would prepare a CCR on what happens with the glass that is recycled.

Councilmember McCarthy reported that he was approached by a legal firm in town representing an energy company interested in exploring the installation of solar arrays to generate electricity at Red Gap Ranch. Mr. Copley reported that the City has been having this discussion for a number of years; staff will put together a CCR to bring everyone up to speed.

Mayor Evans said that she has not been providing much in the way of updates, but was asked to. She said that her calendar is posted online so the public is able to see who she is meeting with. She then gave the following update:

•Working with the City's Economic Vitality division, they held the first brewery roundtable with seven breweries in town to discuss the opportunity of growth and how it relates to STEM jobs.
•She hosted the first Mayor's Community Policy Trust Forum at the Colton House, and they had 12 individuals from local, county, state and federal level. They are preparing a White Paper which will be available online on Monday, the topic was minimun wage and Prop 206 and 414.
•The second Mayor's Community Trust will be held on April 5 in the basement of Lady of Guadalupe and will be addressing race relations in Flagstaff.
•She has been working with Supervisor Art Babbott re the Gridlock meeting at the end of the month.
•She met with several representatives from District 6.
•She has established a regular meeting schedule with Dr. Cheng from NAU.
•She is meeting monthly with the Downtown Business Alliance (DBA) Director and City Manager, working on establishing monthly arts displays, and working on First Friday Art Walk with the City for June, July and August.
•She is working with staff in Sustainability on the Mayor's Water Challenge.
•She is on the radio twice a month - Mayor's Update at 7:15 a.m.
•She is writing a monthly column for Business News
•She sat down with Housing and a developer to discuss new and affordable housing.
•She continues to hold Coffee with Coral and would invite individual Councilmembers to join her (one at a time)

Councilmember Barotz said that she has also been working with Supervisor Babbott and she noted that it was a ticketed event. Mr. Copley said that he would have staff work on obtaining tickets for any Councilmembers interested in attending.

Mayor Evans thanked her fellow Councilmembers for the last few meetings at which they have had difficult and serious conversations.

The Regular Meeting of the Flagstaff City Council held March 7, 2017, adjourned at 9:26 p.m.