CITY COUNCIL COMBINED SPECIAL MEETING /
BUDGET RETREAT
THURSDAY, FEBRUARY 7, 2019
ELK'S LODGE
2101 N. SAN FRANCISCO
8:30 A.M.
BUDGET RETREAT
THURSDAY, FEBRUARY 7, 2019
ELK'S LODGE
2101 N. SAN FRANCISCO
8:30 A.M.
MINUTES
1.
CALL TO ORDER
Mayor Evans called the Special Meeting of the Flagstaff City Council held February 7, 2019, to order at 8:43 a.m.
Mayor Evans called the Special Meeting of the Flagstaff City Council held February 7, 2019, to order at 8:43 a.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 regular meeting, 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.
ROLL CALL
| NOTE: One or more Councilmembers may be in attendance telephonically or by other technological means. |
| PRESENT: MAYOR EVANS VICE MAYOR SHIMONI COUNCILMEMBER ASLAN COUNCILMEMBER MCCARTHY COUNCILMEMBER ODEGAARD COUNCILMEMBER SALAS COUNCILMEMBER WHELAN |
ABSENT: |
Others present: City Manager Barbara Goodrich; City Attorney Sterling Solomon.
3.
PLEDGE OF ALLEGIANCE AND MISSION STATEMENT
The Council and audience recited the pledge of allegiance and Councilmember McCarthy read the Mission Statement of the City of Flagstaff.
The Council and audience recited the pledge of allegiance and Councilmember McCarthy 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.
At this time, Mayor Evans opened the meeting for Public Participation for items not on the agenda.
Ms. Goodrich addressed the Council and read the attached City Council Report into the record.
Ms. Goodrich addressed the Council and read the attached City Council Report into the record.
4.
Consideration and Approval of 2019-2021 State Legislative Priorities.
Interim Assistant to the City Manager Cliff Bryson provided a PowerPoint presentation that covered the following:
2-5-19 OUTLINE
LOCAL CONTROL AND LOCAL DECISION
Deputy City Manager Shane Dille stated that over the last week the Council heard staff talk about the GAMA resolution on the short-term rentals along with the resolution from Senator Kavanaugh. He asked what the difference is between the two approaches. Mr. Bryson explained that the GAMA bill asks for a distinction between the short- and long-term rentals whereas the Kavanaugh bill does not. The Kavanaugh bill is more focused on regulations and enforcement.
Mr. Dille stated that the Kavanaugh bill did a good job explaining the negative impacts short-term rentals have on communities, but cities and towns feel that it fell short of making meaningful asks to allow municipal governments to regulate short-term rentals.
Mr. Bryson continued the presentation.
SUPPORT/ADVOCATE FOR
Councilmember Whelan suggested adding the topics of increased funding for infrastructure and transportation and the protection of voting rights and voting accessibility.
Vice Mayor Shimoni agreed and suggested advocating for more transparency around ICE efforts locally as well as increased investment in public outreach at the state level.
Councilmember Aslan suggested the issue of wildlife hunting throughout the state and bringing awareness to the issue of wildlife killing contests.
Mr. Bryson continued the presentation.
PROTECTION RESOURCES
SAFETY AND WELFARE
PROTECTION OF STATE FUNDING
FLAGSTAFF COMMUNITY SPECIFIC
Councilmember McCarthy suggested that the item “Protection of State Funding” should be changed to “Infrastructure” as it will be more palatable to the legislators. Council agreed to make the change.
The Council agreed to the following priorities:
LOCAL CONTROL AND LOCAL DECISIONS:
2-5-19 OUTLINE
LOCAL CONTROL AND LOCAL DECISION
Deputy City Manager Shane Dille stated that over the last week the Council heard staff talk about the GAMA resolution on the short-term rentals along with the resolution from Senator Kavanaugh. He asked what the difference is between the two approaches. Mr. Bryson explained that the GAMA bill asks for a distinction between the short- and long-term rentals whereas the Kavanaugh bill does not. The Kavanaugh bill is more focused on regulations and enforcement.
Mr. Dille stated that the Kavanaugh bill did a good job explaining the negative impacts short-term rentals have on communities, but cities and towns feel that it fell short of making meaningful asks to allow municipal governments to regulate short-term rentals.
Mr. Bryson continued the presentation.
SUPPORT/ADVOCATE FOR
Councilmember Whelan suggested adding the topics of increased funding for infrastructure and transportation and the protection of voting rights and voting accessibility.
Vice Mayor Shimoni agreed and suggested advocating for more transparency around ICE efforts locally as well as increased investment in public outreach at the state level.
Councilmember Aslan suggested the issue of wildlife hunting throughout the state and bringing awareness to the issue of wildlife killing contests.
Mr. Bryson continued the presentation.
PROTECTION RESOURCES
SAFETY AND WELFARE
PROTECTION OF STATE FUNDING
FLAGSTAFF COMMUNITY SPECIFIC
Councilmember McCarthy suggested that the item “Protection of State Funding” should be changed to “Infrastructure” as it will be more palatable to the legislators. Council agreed to make the change.
The Council agreed to the following priorities:
LOCAL CONTROL AND LOCAL DECISIONS:
- Clarification of Proposition 126
- Resolution with ADOR for ‘Wayfair’ case
- Resolution of short-term rental issues
- Protection of all state shared revenues
- Dark Sky standards on all ADOT roads in and around Flagstaff
- Repeal State Bills
- SB1070
- SB1487
- Safe water protection
- Groundwater monitoring standards for uranium
- Mine specific aquifer protections from ADEQ
- Watershed protection
- Support through Flood Control District for regional issues of concern
- Develop or continue current partnerships to advocate for Rio de Flag funding
- Aviation
- HURF
- Remove $2.5 million dollar cap on State Housing Trust funds
- Enhance economic development
- Increase workforce development
- Increase workforce housing
5.
ADJOURNMENT
The Special Meeting of the Flagstaff City Council held February 7, 2019, adjourned at 9:45 a.m.
The Special Meeting of the Flagstaff City Council held February 7, 2019, adjourned at 9:45 a.m.
BUDGET RETREAT
1.
CALL TO ORDER
Mayor Evans called the Budget Retreat of the Flagstaff City Council held February 7, 2019, to order at 9:45 a.m.
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 regular meeting, 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).
Mayor Evans called the Budget Retreat of the Flagstaff City Council held February 7, 2019, to order at 9:45 a.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 regular meeting, 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.
City Council Fiscal Year 2020 Budget Retreat.
Ms. Goodrich addressed Council stating that the objective of the day is to look at the Council goals and get affirmation on what staff is proposing. Ms. Goodrich introduced Revenue Director Sandy Corder who began the PowerPoint presentation that covered the following:
REVENUE UPDATE
CITY SALES TAX – GENERAL FUND
STATE SHARED SALES TAX
STATE SHARED INCOME TAX/URBAN REVENUE
FRANCHISE FEES
BUILDING PERMITS
BBB REVENUE
HIGHWAY USER REVENUE (HURF)
Finance Director Brandi Suda continued the presentation.
FIXED COSTS AND AVAILABLE REVENUES
PENSION CONTRIBUTION RATES
PENSION EXPENDITURES
FIXED COST SUMMARY -GENERAL FUND
The Council discussed merit raises and the impacts of the unfunded pension liability on the general fund.
REVENUE UPDATE SUMMARY – GENERAL FUND
The Council discussed property taxes and the ability to use those revenues to pay down the unfunded pension liability.
A break was held from 11:13 a.m. through 11:34 a.m.
Deputy City Manager Shane Dille continued the presentation.
HIGH PERFORMING GOVERNMENT
WHAT DO WE NEED TO CONSIDER OVER THE NEXT CALENDAR YEAR?
Council expressed support for staff to continue efforts aimed at becoming a high performing government.
Economic Development Director Heidi Hansen continued the presentation.
ECONOMIC DEVELOPMENT
SUPPORT MINIMUM WAGE IMPACT THROUGH A COMPREHENSIVE ANALYSIS
GROW INDUSTRIAL CORRIDOR ALONG I40/RED GAP
Council requested that a committee be formed that includes staff and Councilmembers to look at Red Gap Ranch and possible opportunities for the city land.
CREATE GREATER COLLABORATION ON WORKFORCE DEVELOPMENT
Council discussed increasing the City’s outreach for intern and volunteer opportunities for high school and college students. They also discussed opportunities to attract businesses to Flagstaff.
Community Development Director Dan Folke continued the presentation.
AFFORDABLE HOUSING
SEEK PARTNERSHIPS WITH PRIVATE DEVELOPERS
STAFF AND COUNCIL EDUCATION ON EMERGING HOUSING MODELS
Council discussed the need for affordable housing and a desire to move away from student housing developments. The conversation included limitations to requiring affordable housing and the need to treat all developments fairly and equally.
Mr. Dille continued the presentation.
SOCIAL JUSTICE
CONSULATE/EMBASSY SERVICE COORDINATION
SUPPORT EARLY EDUCATION EFFORTS IN THE COMMUNITY
Deputy Police Chief Dan Musselman continued the presentation.
CONTINUE TO EVALUATE AND IMPROVE FLAGSTAFF POLICE DEPARTMENT INTERACTION WITH IMMIGRANT COMMUNITY
Mr. Folke continued the presentation.
TRANSPORTATION
EVALUATE TIMING OF I40/LONE TREE INTERCHANGE
EVALUATE AND CREATE ALTERNATIVE MODELS OF TRANSPORTATION TO IMPROVE BIKE AND PEDESTRIAN SAFETY
The Council discussed bike safety, the need to improve existing roads to be more bike friendly, and expansion and additional connectivity of FUTS trails.
ADVOCATE FOR FOURTH STREET CONNECTION WITH JOHN WESLEY POWELL
BUILDING AND ZONING/REGIONAL PLAN
COMPLETE AND UPDATE NEIGHBORHOOD PLANS SPECIFIC TO THE HOUSING URBAN DEVELOPMENT CONSOLIDATED PLAN
PROPOSE ZONING AND/OR BETTER INCENTIVES THAT ARE DESIRABLE AND USED FOR MORE AFFORDABLE HOUSING
FINISH PROMISED NEIGHBORHOOD AND CAPITAL PROJECTS ON TIME
A break was held from 1:29 p.m. through 1:40 p.m.
Public Works Director Andy Bertelsen continued the presentation.
CLIMATE CHANGE
CONTINUED IMPLEMENTATION OF CAAP
SUSTAINABILITY THROUGH THE CAAP LENS FOR ALL CITY
ENHANCE COMMUNITY ENGAGEMENT ON CAAP
The Council discussed the Climate Action and Adaptation Plan and the early accomplishments since its implementation.
Water Services Director Brad Hill continued the presentation.
WATER CONSERVATION
STUDY A PATH FORWARD FOR WATER AND/OR RECLAIMED EXPANSION
CITY TO BE A NATIONAL LEADER IN WATER CONSERVATION
RECLAIM WATER USAGE AT JAY LIVELY AND FORT TUTHILL
Mr. Folke continued the presentation.
ENVIRONMENTAL AND NATURAL RESOURCES
ENSURE ADEQUATE RESOURCES TO IMPLEMENT SLEDS OF ALL DARK SKY ENDEAVORS
Council discussed the newly requested position of Dark Sky Specialist.
Mr. Bertelsen continued the presentation.
PLAN FOR UPCOMING MATERIAL RECYCLING FACILITY (MRF) CONTRACTUAL/FACILITY CHANGES
Management Services Director Rick Tadder continued the presentation.
DEVELOP SUSTAINABLE FUNDING FOR FWPP PHASE 3 AND ONGOING MAINTENANCE
Human Resources Director Shannon Anderson continued the presentation.
PERSONNEL
EVALUATE COUNCIL NEEDS BASED ON TODAY’S ENGAGEMENT EXPECTATIONS
Council discussed the Commission on Council Salaries and their desire to see the matter of Council salaries discussed every two years rather than four or more. They discussed how the expectations of the Mayor and Councilmembers has changed over time with the positions becoming more time consuming and demanding. They expressed their desire to see the representation on the commission expand further than the chairpersons of a few standing commissions. The Council would like to see the commission offer recommendations concerning salary and staffing, among other things.
Mr. Tadder continued the presentation.
EVALUATE WAYS TO PAY DOWN UNFUNDED PENSION LIABILITIES IN A QUICKER MANNER
The Council discussed the unfunded pension liability and they requested additional information and a follow up Work Session to discuss further. They also discussed possible options for addressing the unfunded liability such as property tax increases, sales tax increases, and reducing the City’s fund balance.
Ms. Anderson continued the presentation.
PROVIDE ONGOING PAY RAISES FOR ALL EMPLOYEES
The Council discussed merit increases, longevity pay increases, and the challenges associated with compaction in the pay plans.
Employee Advisory Committee (EAC) Chairperson Tamara Lawless continued the presentation.
EAC BUDGET RECOMMENDATIONS
ESTABLISH AND FUND A MECHANISM TO MOVE EMPLOYEES THROUGH THEIR PAY PLANS
COVER INCREASE IN HEALTH INSURANCE PREMIUMS
OTHER CONSIDERATIONS
Council discussed the EAC recommendations and were supportive.
PUBLIC COMMENT
Joe Galli with the Greater Flagstaff Chamber of Commerce spoke regarding SB1225, affordable housing, the CAAP, dark skies, and natural resources. He also stated that a sales tax increase is not the appropriate action to address the unfunded pension liability.
REVENUE UPDATE
CITY SALES TAX – GENERAL FUND
STATE SHARED SALES TAX
STATE SHARED INCOME TAX/URBAN REVENUE
FRANCHISE FEES
BUILDING PERMITS
BBB REVENUE
HIGHWAY USER REVENUE (HURF)
Finance Director Brandi Suda continued the presentation.
FIXED COSTS AND AVAILABLE REVENUES
PENSION CONTRIBUTION RATES
PENSION EXPENDITURES
FIXED COST SUMMARY -GENERAL FUND
The Council discussed merit raises and the impacts of the unfunded pension liability on the general fund.
REVENUE UPDATE SUMMARY – GENERAL FUND
The Council discussed property taxes and the ability to use those revenues to pay down the unfunded pension liability.
A break was held from 11:13 a.m. through 11:34 a.m.
Deputy City Manager Shane Dille continued the presentation.
HIGH PERFORMING GOVERNMENT
WHAT DO WE NEED TO CONSIDER OVER THE NEXT CALENDAR YEAR?
Council expressed support for staff to continue efforts aimed at becoming a high performing government.
Economic Development Director Heidi Hansen continued the presentation.
ECONOMIC DEVELOPMENT
SUPPORT MINIMUM WAGE IMPACT THROUGH A COMPREHENSIVE ANALYSIS
GROW INDUSTRIAL CORRIDOR ALONG I40/RED GAP
Council requested that a committee be formed that includes staff and Councilmembers to look at Red Gap Ranch and possible opportunities for the city land.
CREATE GREATER COLLABORATION ON WORKFORCE DEVELOPMENT
Council discussed increasing the City’s outreach for intern and volunteer opportunities for high school and college students. They also discussed opportunities to attract businesses to Flagstaff.
Community Development Director Dan Folke continued the presentation.
AFFORDABLE HOUSING
SEEK PARTNERSHIPS WITH PRIVATE DEVELOPERS
STAFF AND COUNCIL EDUCATION ON EMERGING HOUSING MODELS
Council discussed the need for affordable housing and a desire to move away from student housing developments. The conversation included limitations to requiring affordable housing and the need to treat all developments fairly and equally.
Mr. Dille continued the presentation.
SOCIAL JUSTICE
CONSULATE/EMBASSY SERVICE COORDINATION
SUPPORT EARLY EDUCATION EFFORTS IN THE COMMUNITY
Deputy Police Chief Dan Musselman continued the presentation.
CONTINUE TO EVALUATE AND IMPROVE FLAGSTAFF POLICE DEPARTMENT INTERACTION WITH IMMIGRANT COMMUNITY
Mr. Folke continued the presentation.
TRANSPORTATION
EVALUATE TIMING OF I40/LONE TREE INTERCHANGE
EVALUATE AND CREATE ALTERNATIVE MODELS OF TRANSPORTATION TO IMPROVE BIKE AND PEDESTRIAN SAFETY
The Council discussed bike safety, the need to improve existing roads to be more bike friendly, and expansion and additional connectivity of FUTS trails.
ADVOCATE FOR FOURTH STREET CONNECTION WITH JOHN WESLEY POWELL
BUILDING AND ZONING/REGIONAL PLAN
COMPLETE AND UPDATE NEIGHBORHOOD PLANS SPECIFIC TO THE HOUSING URBAN DEVELOPMENT CONSOLIDATED PLAN
PROPOSE ZONING AND/OR BETTER INCENTIVES THAT ARE DESIRABLE AND USED FOR MORE AFFORDABLE HOUSING
FINISH PROMISED NEIGHBORHOOD AND CAPITAL PROJECTS ON TIME
A break was held from 1:29 p.m. through 1:40 p.m.
Public Works Director Andy Bertelsen continued the presentation.
CLIMATE CHANGE
CONTINUED IMPLEMENTATION OF CAAP
SUSTAINABILITY THROUGH THE CAAP LENS FOR ALL CITY
ENHANCE COMMUNITY ENGAGEMENT ON CAAP
The Council discussed the Climate Action and Adaptation Plan and the early accomplishments since its implementation.
Water Services Director Brad Hill continued the presentation.
WATER CONSERVATION
STUDY A PATH FORWARD FOR WATER AND/OR RECLAIMED EXPANSION
CITY TO BE A NATIONAL LEADER IN WATER CONSERVATION
RECLAIM WATER USAGE AT JAY LIVELY AND FORT TUTHILL
Mr. Folke continued the presentation.
ENVIRONMENTAL AND NATURAL RESOURCES
ENSURE ADEQUATE RESOURCES TO IMPLEMENT SLEDS OF ALL DARK SKY ENDEAVORS
Council discussed the newly requested position of Dark Sky Specialist.
Mr. Bertelsen continued the presentation.
PLAN FOR UPCOMING MATERIAL RECYCLING FACILITY (MRF) CONTRACTUAL/FACILITY CHANGES
Management Services Director Rick Tadder continued the presentation.
DEVELOP SUSTAINABLE FUNDING FOR FWPP PHASE 3 AND ONGOING MAINTENANCE
Human Resources Director Shannon Anderson continued the presentation.
PERSONNEL
EVALUATE COUNCIL NEEDS BASED ON TODAY’S ENGAGEMENT EXPECTATIONS
Council discussed the Commission on Council Salaries and their desire to see the matter of Council salaries discussed every two years rather than four or more. They discussed how the expectations of the Mayor and Councilmembers has changed over time with the positions becoming more time consuming and demanding. They expressed their desire to see the representation on the commission expand further than the chairpersons of a few standing commissions. The Council would like to see the commission offer recommendations concerning salary and staffing, among other things.
Mr. Tadder continued the presentation.
EVALUATE WAYS TO PAY DOWN UNFUNDED PENSION LIABILITIES IN A QUICKER MANNER
The Council discussed the unfunded pension liability and they requested additional information and a follow up Work Session to discuss further. They also discussed possible options for addressing the unfunded liability such as property tax increases, sales tax increases, and reducing the City’s fund balance.
Ms. Anderson continued the presentation.
PROVIDE ONGOING PAY RAISES FOR ALL EMPLOYEES
The Council discussed merit increases, longevity pay increases, and the challenges associated with compaction in the pay plans.
Employee Advisory Committee (EAC) Chairperson Tamara Lawless continued the presentation.
EAC BUDGET RECOMMENDATIONS
ESTABLISH AND FUND A MECHANISM TO MOVE EMPLOYEES THROUGH THEIR PAY PLANS
COVER INCREASE IN HEALTH INSURANCE PREMIUMS
OTHER CONSIDERATIONS
Council discussed the EAC recommendations and were supportive.
PUBLIC COMMENT
Joe Galli with the Greater Flagstaff Chamber of Commerce spoke regarding SB1225, affordable housing, the CAAP, dark skies, and natural resources. He also stated that a sales tax increase is not the appropriate action to address the unfunded pension liability.
3.
PUBLIC PARTICIPATION
This item was taken out of order at the beginning of the meeting.
4.
ADJOURNMENT
The Budget Retreat of the Flagstaff City Council held February 7, 2019, adjourned at 3:54 p.m.
The Budget Retreat of the Flagstaff City Council held February 7, 2019, adjourned at 3:54 p.m.
___________________________________ MAYOR |
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| ATTEST: |
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| _________________________________ CITY CLERK |