CITY COUNCIL WORK SESSION
TUESDAY, MAY 29, 2018
CITY HALL COUNCIL CHAMBERS
211 WEST ASPEN
6:00 P.M.
TUESDAY, MAY 29, 2018
CITY HALL COUNCIL CHAMBERS
211 WEST ASPEN
6:00 P.M.
MINUTES
1.
Call to Order
Mayor Evans called the Work Session of May 29, 2018, to order at 6:00 p.m.
Mayor Evans called the Work Session of May 29, 2018, to order at 6:00 p.m.
NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION
Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that, at this work session, the City Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the City’s attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).
2.
Pledge of Allegiance and Mission Statement
Councilmember Overton led the Council and audience in the Pledge of Allegiance and Councilmember Odegaard read the Mission Statement of the City of Flagstaff.
Councilmember Overton led the Council and audience in the Pledge of Allegiance and Councilmember Odegaard read the Mission Statement of the City of Flagstaff.
MISSION STATEMENT
The mission of the City of Flagstaff is to protect and enhance the quality of life for all.
3.
Roll Call
| 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 |
ABSENT: COUNCILMEMBER PUTZOVA |
Others present: City Manager Barbara Goodrich and City Attorney Sterling Solomon
4.
Public Participation
Public Participation enables the public to address the council about items that are not on the prepared agenda. Public Participation appears on the agenda twice, at the beginning and at the end of the work session. You may speak at one or the other, but not both. 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.
Public Participation enables the public to address the council about items that are not on the prepared agenda. Public Participation appears on the agenda twice, at the beginning and at the end of the work session. You may speak at one or the other, but not both. 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.
The following individual addressed the Council:
Dr. Alice Christie, PhD, owner of Tinkertopia, a new STEM Education center opening its doors in July. She told about the company and said that she hoped the City would partner with her in the future.
Dr. Alice Christie, PhD, owner of Tinkertopia, a new STEM Education center opening its doors in July. She told about the company and said that she hoped the City would partner with her in the future.
5.
Review of Draft Agenda for the June 5, 2018 City Council Meeting.*
* Public comment on draft agenda items may be taken under “Review of Draft Agenda Items”at the discretion of the Mayor. Citizens wishing to speak on agenda items not specifically called out by the City Council for discussion under the Review section may submit a speaker card for their items of interest to the recording clerk.
None
* Public comment on draft agenda items may be taken under “Review of Draft Agenda Items”at the discretion of the Mayor. Citizens wishing to speak on agenda items not specifically called out by the City Council for discussion under the Review section may submit a speaker card for their items of interest to the recording clerk.
None
6.
Red Gap Ranch Pipeline Feasibility Study Update
Water Resources Manager Erin Young began the PowerPoint presentation which addressed:
RED GAP RANCH
3 possible routes – Segment 3 – presentation allows Council to ask questions about the preferred alignment
TODAY’S PRESENTATION
Goal: secure water supplies for the community
PROJECT BACKGROUND
Due to years of drought and impacts to Flagstaff’s water supplies
In 2004, voters approved a $15 million bond
Purpose to acquire and/or develop property or water rights
8500 acres City-owned
7,000 ASLD & Private owned
COUNCIL AUTHORIZED PURCHASE IN 2005
$11.5 million
FLAGSTAFF WATER PLANNING
City has conducted Water Resource Planning Efforts
Coconino Plateau WAC (2006)
Water Resource Master Plan (2011)
Both identified a need for an additional water supply in the future
DESIGNATION OF ADEQUATE WATER SUPPLY – 2013
Proven physical availability of water supplies and a proven legal authority to pump those
Demonstrated financial capabilities
At this time, Jeff Miner with Jacobs Engineering came forward to continue the presentation and discuss Segment 3:
Vice Mayor Whelan said that in the staff report it said that they could put this on hold and asked how long they have been on hold. Mr. Hill replied that it was on hold from 2009 until November of 2016.
CITY HIRED JACOBS TO COMPLETE STUDY – 2008
In compliance with USBR regulations
Field work (survey, geotech, environmental field studies)
Alignment Study
Preliminary Engineering
Cost Estimate
PROJECT ORGANIZATION AND SCHEDULED
Phase 1 – Alignment Selection
Phase 2 – Conceptual Design & Cost (as they completed the Phase 1 of the alignment they noticed that conditions started to change – had to look at different alignments)
Phase 3 – Final Feasibility and Design Report (March 2019)
SELECTED ALIGNMENT
Segment 1 – APS power line
Segment 2 – ADOT ROW
Segment 3 – Townsend/Winona
Portion of Segment 3 – over Turkey Hill's Cultural Sensitivities
When they rebooted the study, they found that the USFS was reluctant to provide them clearance. They had several discussions with them and went back to the drawing board. They developed new alignments that were chosen to analyze due to those sensitivities. He said that they vetted with the USFS and presented to the CPWRC. The USFS did provide feedback and they took that into account.
Green – Along Townsend/Winona Road until SR89
Yellow – South of I-40 and East 66 near mall
Blue – South of I-40 and south on Cosnino Road – power line alignment until Butler Avenue will end in the future
He said that each of these tie into an area in the City’s current water distribution system that they deemed would work
.
GREEN
Benefits: no major elevation; avoids Turkey Hill's Barriers; previously established utility road corridor
Avoids Walnut Canyon Crossing
Drawbacks: Some potential archeological barriers
Longer route
Potential community opposition
YELLOW
Benefits: No major elevation barriers; follows previously-established corridors
Drawbacks: Follows along outside of I-40 alignment – some issues with that – potential archeological barriers
BLUE
Benefits: same for first portion – goes south on Cosnino Road and follows along APS;same issues of first alignment. They cannot share the easement with APS; would have to clear forest land – unknown archeological sites. No major elevation barriers; less traffic impacted.
Drawbacks: Potential crossing entrance to Walnut Canyon; community opposition
ROUTE SELECTION CRITERIA
Lowest Project Risk
Construction, Operations
Land Acquisitions, Permitting, Political
Least Environmental Impact
Archeological, Disturbed Area
Riparian, Habitat
Community Impact
Traffic, Construction
Visibility, Probable Customers
Lowest Cost
O&M (energy)
Capital (construction, land, canyon crossings)
2,000 feet of lift from beginning to end
ALIGNMENT COMPARISON
Townsend Winona (1)
ADOT I-40 (3)
ADOT I-40/APS (2)
AERIAL SURVEY
ENVIRONMENTAL/ARCHEOLOGICAL EXPLORATION
MAP
NEXT STEPS
Continue Phase II Analysis for Selected Alignment
Permitting and Field Exploration
Draft/Final Phase 2 report
Phase III Report
Future Work 2019-2024
NEPA
ROW acquisition, survey & mapping
Well completion & testing
Depending upon growth and future Council decisions, pipeline final design and construction (after 2025)
RED GAP RANCH
3 possible routes – Segment 3 – presentation allows Council to ask questions about the preferred alignment
TODAY’S PRESENTATION
Goal: secure water supplies for the community
PROJECT BACKGROUND
Due to years of drought and impacts to Flagstaff’s water supplies
In 2004, voters approved a $15 million bond
Purpose to acquire and/or develop property or water rights
8500 acres City-owned
7,000 ASLD & Private owned
COUNCIL AUTHORIZED PURCHASE IN 2005
$11.5 million
FLAGSTAFF WATER PLANNING
City has conducted Water Resource Planning Efforts
Coconino Plateau WAC (2006)
Water Resource Master Plan (2011)
Both identified a need for an additional water supply in the future
DESIGNATION OF ADEQUATE WATER SUPPLY – 2013
Proven physical availability of water supplies and a proven legal authority to pump those
Demonstrated financial capabilities
At this time, Jeff Miner with Jacobs Engineering came forward to continue the presentation and discuss Segment 3:
Vice Mayor Whelan said that in the staff report it said that they could put this on hold and asked how long they have been on hold. Mr. Hill replied that it was on hold from 2009 until November of 2016.
CITY HIRED JACOBS TO COMPLETE STUDY – 2008
In compliance with USBR regulations
Field work (survey, geotech, environmental field studies)
Alignment Study
Preliminary Engineering
Cost Estimate
PROJECT ORGANIZATION AND SCHEDULED
Phase 1 – Alignment Selection
Phase 2 – Conceptual Design & Cost (as they completed the Phase 1 of the alignment they noticed that conditions started to change – had to look at different alignments)
Phase 3 – Final Feasibility and Design Report (March 2019)
SELECTED ALIGNMENT
Segment 1 – APS power line
Segment 2 – ADOT ROW
Segment 3 – Townsend/Winona
Portion of Segment 3 – over Turkey Hill's Cultural Sensitivities
When they rebooted the study, they found that the USFS was reluctant to provide them clearance. They had several discussions with them and went back to the drawing board. They developed new alignments that were chosen to analyze due to those sensitivities. He said that they vetted with the USFS and presented to the CPWRC. The USFS did provide feedback and they took that into account.
Green – Along Townsend/Winona Road until SR89
Yellow – South of I-40 and East 66 near mall
Blue – South of I-40 and south on Cosnino Road – power line alignment until Butler Avenue will end in the future
He said that each of these tie into an area in the City’s current water distribution system that they deemed would work
.
GREEN
Benefits: no major elevation; avoids Turkey Hill's Barriers; previously established utility road corridor
Avoids Walnut Canyon Crossing
Drawbacks: Some potential archeological barriers
Longer route
Potential community opposition
YELLOW
Benefits: No major elevation barriers; follows previously-established corridors
Drawbacks: Follows along outside of I-40 alignment – some issues with that – potential archeological barriers
BLUE
Benefits: same for first portion – goes south on Cosnino Road and follows along APS;same issues of first alignment. They cannot share the easement with APS; would have to clear forest land – unknown archeological sites. No major elevation barriers; less traffic impacted.
Drawbacks: Potential crossing entrance to Walnut Canyon; community opposition
ROUTE SELECTION CRITERIA
Lowest Project Risk
Construction, Operations
Land Acquisitions, Permitting, Political
Least Environmental Impact
Archeological, Disturbed Area
Riparian, Habitat
Community Impact
Traffic, Construction
Visibility, Probable Customers
Lowest Cost
O&M (energy)
Capital (construction, land, canyon crossings)
2,000 feet of lift from beginning to end
ALIGNMENT COMPARISON
Townsend Winona (1)
ADOT I-40 (3)
ADOT I-40/APS (2)
AERIAL SURVEY
ENVIRONMENTAL/ARCHEOLOGICAL EXPLORATION
MAP
NEXT STEPS
Continue Phase II Analysis for Selected Alignment
Permitting and Field Exploration
Draft/Final Phase 2 report
Phase III Report
Future Work 2019-2024
NEPA
ROW acquisition, survey & mapping
Well completion & testing
Depending upon growth and future Council decisions, pipeline final design and construction (after 2025)
Robert Vane, Flagstaff, said that he and others are pleased that the studies are continuing, but there are also other alternatives. They hoped that this evening Council will ask staff to provide a brief summary of the status of other alternatives; completed at detail comparable to Red Gap Ranch; present road map decision to be made; and have another information session so the public has an understanding of the other alternatives.
Mr. Hill said that the Water Resources Master Plan done in 2011 is to be updated. There have been other conservation options with advanced treatment to reclaimed water and they are the midst of that study and Red Gap Ranch.
Vice Mayor Whelan asked where the recharge goes. Mr. Hill said that is part of the conversation related to advanced treatment; direct potable reuse or indirect. He said that the studies of other alternatives will be completed to a comparable level of Red Gap Ranch. He said that they will have advanced water treatment options to the Water Commission next month and to Council the end of August. Then Water Conservation will be out about a year. By next summer they will have all three of those options before them. to compare.
Mr. Hill said that the Water Resources Master Plan done in 2011 is to be updated. There have been other conservation options with advanced treatment to reclaimed water and they are the midst of that study and Red Gap Ranch.
Vice Mayor Whelan asked where the recharge goes. Mr. Hill said that is part of the conversation related to advanced treatment; direct potable reuse or indirect. He said that the studies of other alternatives will be completed to a comparable level of Red Gap Ranch. He said that they will have advanced water treatment options to the Water Commission next month and to Council the end of August. Then Water Conservation will be out about a year. By next summer they will have all three of those options before them. to compare.
7.
2018 Election Discussion and Direction to Staff
Ms. Goodrich said that they would begin the presentation tonight by answering some questions related to the transportation tax questions and then move into Affordable Housing.
UPCOMING DATES
TRANSPORTATION TAX
MAJOR IMPROVEMENTS – since 2000
COUNCIL DIRECTION – Craft question for review
Rate? (Renewal at 0.426% proposed)
Funds large transportation projects
Survey
With the first question related to the existing tax, discussion was held on whether to bond for some of the larger projects.
With the question related to the Lone Tree Railroad Overpass, several Councilmembers supported bonding this project for 20 years, but being able to have it done within 6 years. Council also discussed where the improvements would end. Mr. Wessel said that there are several parts to the issue, the most immediate of which is the terrain.
Ms. Goodrich said that they could actually look at starting this new tax in the Spring of next year and collect it for a 20 year term, should Council choose to move it forward.
Councilmember Overton asked Ms. Mazza with NAIPTA to provide some information on what the additional .15% tax would provide. Ms. Mazza said that it would increase the frequency on every line currently offered and would bring some down to 15 minutes, such as Route 10. it would also increase the span of service, later night service to Flagstaff.
Councilmember Overton said that there is a correlation between this service and the transportation network; they work hand in hand. Ms. Mazza added that if it went forward, NAU would bring forward a universal access pass to all. Councilmember McCarthy added that there are some residents that will never ride, but this would still benefit them by taking cars off of the roads.
UPCOMING DATES
TRANSPORTATION TAX
- Broad transportation improvement – extend existing 0.426%
- Lone Tree Overpass .230% 0.265%
- Transit – 0.15%
MAJOR IMPROVEMENTS – since 2000
COUNCIL DIRECTION – Craft question for review
Rate? (Renewal at 0.426% proposed)
Funds large transportation projects
Survey
With the first question related to the existing tax, discussion was held on whether to bond for some of the larger projects.
With the question related to the Lone Tree Railroad Overpass, several Councilmembers supported bonding this project for 20 years, but being able to have it done within 6 years. Council also discussed where the improvements would end. Mr. Wessel said that there are several parts to the issue, the most immediate of which is the terrain.
Ms. Goodrich said that they could actually look at starting this new tax in the Spring of next year and collect it for a 20 year term, should Council choose to move it forward.
Councilmember Overton asked Ms. Mazza with NAIPTA to provide some information on what the additional .15% tax would provide. Ms. Mazza said that it would increase the frequency on every line currently offered and would bring some down to 15 minutes, such as Route 10. it would also increase the span of service, later night service to Flagstaff.
Councilmember Overton said that there is a correlation between this service and the transportation network; they work hand in hand. Ms. Mazza added that if it went forward, NAU would bring forward a universal access pass to all. Councilmember McCarthy added that there are some residents that will never ride, but this would still benefit them by taking cars off of the roads.
At this time, Housing Director Sarah Darr continued the presentation which addressed:
AFFORDABLE HOUSING
She said that at the February Budget Retreat Council direction was to prepare a discussion item for a potential affordable housing bond question.
AFFORDABLE HOUSING
HISTORY OF STUDIES
SUPPLY SIDE
DEMAND SIDE
At this time, Rick Tadder came forward to review the following:
FINANCIAL INFORMATION
General Obligation Bond
GO is funded and paid back through secondary property tax levy
Current rate - to not exceed .8366 per $100
Based on current projection of Assessed Valuation
Estimated capacity $50 million under current rate policy
Remaining capacity through FY2040
Majority of existing debt paid off by FY2022
Legal Limits:
20% limitations - water, sewer, artificial lighting
6% limitation (housing)
Everything else
Currently no issuance under this limitation
Bond capacity in this limitation - $42 million
In April staff brought forward three options: $25, $30 and $35 million in bonds
Council discussed $30 to $35 million consideration
HOW CAN COUNCIL ENSURE FUNDS ARE SPENT APPROPRIATELY?
Mr. Tadder said that besides the language of the ballot question, Could will have control over several components of the bond-related expenditures including:
Debt Issuance - ordinance approved by Council
Budgeting
Procurement
THREE ELEMENTS OF PROPOSED BOND MEASURE FOR HOUSING
ELEMENT ONE: Creation of a Housing Bond Oversight Advisory Committee
Discussion was held on what exactly the committee would do and what they would be called. It has been suggested that membership would be appointed by the Council and consist of: at-large member, realtor, mortgage lender, subject matter expert, low-income community member, moderate income community member, development/builder, FHAC member.
A break was held from 8:09 p.m. to 8:20 p.m.
HOMEBUYER ASSISTANCE
Recommended structure is intended to be broad
Can be used to assist households above 80% AMI unlike state and federal funds
Can be set up as a revolving fund
Permanent Affordability?
What specific programs would be utilized?
Particular locations?
Who are the developers/builders?
More details about everything?
FOCUS GROUPS
The following individuals addressed the Council:
•Rick Lopez
•Dani Lawrence
•Mark Guard
•Sandi Flores
•Andy Fernandez
•Charlie Silver
Comments included:
•They all need to understand how vulnerable the affordable housing issue here in the community
•They have already lost 150 or so affordable housing units off of Lake Mary Road
•Something like the County blindsiding the City (with the floodplain tax) has an impact
•State Housing Department has taken on a whole new role; you will be lucky to see tax credit developments in the next few years
•Strongly urge the Council to support this
•Affordable Housing is a great need in their community
•She is a realtor that sells homes
•Stands in opposition, as a realtor, there are many approaches to addressing the issue and she disagreed with bonding
•This bond is too rushed; half-baked; should not be put on the 2018 ballot
•This bond is an opportunity to take a huge step forward; great opportunity
•He still has questions, but would support it at this time
HOUSING - SECONDARY PROPERTY TAX
Vice Mayor Whelan said that she was also a recipient of a homebuyer assistance. She was so grateful that the City offered middle-income people the opportunity to buy a home. She said that it changes lives and it changed hers. Tonight they are faced with a decision of whether the six of them will allow the community to decide whether or not they want to change the direction of housing in the City.
After further discussion, four members of Council agreed to move it forward to June 12, 2018, for further discussion.
AFFORDABLE HOUSING
She said that at the February Budget Retreat Council direction was to prepare a discussion item for a potential affordable housing bond question.
AFFORDABLE HOUSING
HISTORY OF STUDIES
SUPPLY SIDE
DEMAND SIDE
At this time, Rick Tadder came forward to review the following:
FINANCIAL INFORMATION
General Obligation Bond
GO is funded and paid back through secondary property tax levy
Current rate - to not exceed .8366 per $100
Based on current projection of Assessed Valuation
Estimated capacity $50 million under current rate policy
Remaining capacity through FY2040
Majority of existing debt paid off by FY2022
Legal Limits:
20% limitations - water, sewer, artificial lighting
6% limitation (housing)
Everything else
Currently no issuance under this limitation
Bond capacity in this limitation - $42 million
In April staff brought forward three options: $25, $30 and $35 million in bonds
Council discussed $30 to $35 million consideration
HOW CAN COUNCIL ENSURE FUNDS ARE SPENT APPROPRIATELY?
Mr. Tadder said that besides the language of the ballot question, Could will have control over several components of the bond-related expenditures including:
Debt Issuance - ordinance approved by Council
Budgeting
Procurement
THREE ELEMENTS OF PROPOSED BOND MEASURE FOR HOUSING
ELEMENT ONE: Creation of a Housing Bond Oversight Advisory Committee
Discussion was held on what exactly the committee would do and what they would be called. It has been suggested that membership would be appointed by the Council and consist of: at-large member, realtor, mortgage lender, subject matter expert, low-income community member, moderate income community member, development/builder, FHAC member.
A break was held from 8:09 p.m. to 8:20 p.m.
HOMEBUYER ASSISTANCE
Recommended structure is intended to be broad
Can be used to assist households above 80% AMI unlike state and federal funds
Can be set up as a revolving fund
Permanent Affordability?
What specific programs would be utilized?
Particular locations?
Who are the developers/builders?
More details about everything?
FOCUS GROUPS
The following individuals addressed the Council:
•Rick Lopez
•Dani Lawrence
•Mark Guard
•Sandi Flores
•Andy Fernandez
•Charlie Silver
Comments included:
•They all need to understand how vulnerable the affordable housing issue here in the community
•They have already lost 150 or so affordable housing units off of Lake Mary Road
•Something like the County blindsiding the City (with the floodplain tax) has an impact
•State Housing Department has taken on a whole new role; you will be lucky to see tax credit developments in the next few years
•Strongly urge the Council to support this
•Affordable Housing is a great need in their community
•She is a realtor that sells homes
•Stands in opposition, as a realtor, there are many approaches to addressing the issue and she disagreed with bonding
•This bond is too rushed; half-baked; should not be put on the 2018 ballot
•This bond is an opportunity to take a huge step forward; great opportunity
•He still has questions, but would support it at this time
HOUSING - SECONDARY PROPERTY TAX
Vice Mayor Whelan said that she was also a recipient of a homebuyer assistance. She was so grateful that the City offered middle-income people the opportunity to buy a home. She said that it changes lives and it changed hers. Tonight they are faced with a decision of whether the six of them will allow the community to decide whether or not they want to change the direction of housing in the City.
After further discussion, four members of Council agreed to move it forward to June 12, 2018, for further discussion.
8.
Public Participation
Andy Fernandez, Flagstaff, voiced concerns with the City.
9.
Informational Items To/From Mayor, Council, and City Manager; future agenda item requests.
Councilmember Odegaard reported that he visited Citizens Cemetery over Memorial Day Weekend.
Vice Mayor Whelan said that the other day she went to the DES informational forum and listened to what they have been doing during the year. She spoke to a panel about minimum wage and how it has affected some of the service providers and asked if there was a process to go through to change their funding mechanism.
Councilmember Barotz thanked all of the City staff that helped ensure the completion of the Beaver Street reconstruction. She added that she would not be at the meetings or able to participate next week.
Mayor Evans agreed with Councilmember Barotz, and gave a "shout out" to Eagle Mountain Contracting. She said that several residents commented on how good they were at working with them.
Vice Mayor Whelan said that the other day she went to the DES informational forum and listened to what they have been doing during the year. She spoke to a panel about minimum wage and how it has affected some of the service providers and asked if there was a process to go through to change their funding mechanism.
Councilmember Barotz thanked all of the City staff that helped ensure the completion of the Beaver Street reconstruction. She added that she would not be at the meetings or able to participate next week.
Mayor Evans agreed with Councilmember Barotz, and gave a "shout out" to Eagle Mountain Contracting. She said that several residents commented on how good they were at working with them.
10.
Adjournment
The Work Session of May 29, 2018, adjourned at 9:12 p.m.
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MAYOR |
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ATTEST:
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CITY CLERK |