Others present: City Manager Greg Clifton; City Attorney Sterling Solomon

The following individual addressed the Council:

Paul Beier representing the Friends of the Rio de Flag addressed Mayor and Council about the payments from the City to BNSF Railroad. He passed a handout out to Council regarding this question.
 
Andy Fernandez addressed the Council regarding the Museum Fire and the effects on the Sunnyside Neighborhood. He stated that he believes that sandbags that were provided to the Sunnyside Neighborhood were a scam. He stated that he only sees manipulation and that travel was impacted by the relief efforts. He believes that the state of emergency was a political game. He also addressed sidewalks in the area and pets in retail stores.
 
Mayor Evans asked for the boy scout in the audience to come forward and introduce himself. James Brown, the Assistant Counselor for the Boy Scouts introduced Aaron Nichols. Mr. Nichols is working on his Citizenship in America badge and attended the meeting to fulfill the requirements of the badge. 

None

Convention and Visitor Bureau Director Trace Ward presented a video to Council regarding the new CVB Website. He encouraged Council to spend some time on the website looking around at all its features. The new site was approved during budget season FY18 because a new website was needed since the last one was not compatible with various devices like smart phones. The old site was difficult to update but the new site has seamless integration and terrific content. Staff is now able to manage content more easily and the site represents the CVB’s stakeholders and partners better. It also supports many of the new marketing efforts of the CVB.
 
Councilmember McCarthy stated that there is no sound on the site. Mr. Ward stated that there is purposely no sound on the site since people may view the site in areas where they might not want to hear music or on a mobile device. However, they are talking about sound above the fold or using a sound bar. Councilmember McCarthy stated that he would like to see optional sound. Mr. Ward added that there are lots of videos with sound that can be selected on the site. The site is still a work in progress.
 
Councilmember Whelan stated that the site is beautiful and makes one want to go through it more and more. She asked if there was a fee for the businesses on the site. Mr. Ward stated that there is a small fee, but the majority of what they do is complimentary. When a business subscribes to the visitor’s guide, the website is included.
 
Councilmember Salas congratulated the CVB team on the Destination Marketing Accreditation Program (DMAP) certificate and the award for the Lunar Legacy campaign. She also stated that she is in awe of the site and has not seen this sort of site before.
 
Vice Mayor Shimoni stated that he loves the site and the video and requested that the video highlighting the site be shared.He asked about the cost and Mr. Ward replied that the cost of the site was about $30,000.
 
Mayor Evans addressed the Governor’s award regarding the Lunar Legacy campaign. She requested that it comes back to Council so that Council can recognize the award. She acknowledged the creativity of the CVB and she wishes that the City's main website looked more like this site. Economic Vitality Director Heidi Hansen stated that she would be happy to have staff work with Communication Manager Jessica Drum. Ms. Hansen thanked her staff including Mr. Ward and Ms. Lori Pappas.

Councilmember Salas addressed promoting Eco Tourism on the site and asked if there was a place on the site for visitors to make a pledge for the regional mountain pledge. Mr. Ward stated that there is one for Pledge for the Wild and that the City is working with Flagstaff Trail Initiative to be a partner. Visitors will be able to pledge directly from their phone and coasters are being developed to promote the program.
 
Councilmember Whelan stated that the neighboring towns and cities do not have the same buying power as Flagstaff. She wanted to see if there was a way to partner with places like Snowflake, Payson, and Williams. Mr. Ward stated that the Arizona Office of Tourism oversees campaigns like that. The CVB has a limited budget that needs to be focused on Flagstaff.
 
Councilmember Aslan added his accolades and that he is proud to live in Flagstaff.
 
Councilmember McCarthy added that he thinks the site was well done.

Associate Planner for Comprehensive Planning Carlton Johnson gave a presentation to Council on the 2018 Annual Audit Report.

Councilmember McCarthy asked Mr. Johnson to define the Regional Plan. Mr. Johnson stated that it is the overview of what the City intends to accomplish and that it is voted upon by the citizens. It defines how the land in the City should be used and the Regional Plan is required by law.
 
Councilmember Whelan asked if there is a ratio that is used in planning and if there is a typical open space metric based on the size of a city or town. Mr. Johnson stated that he does not think there is a typical ratio for open space and noted that it is fairly unique for each jurisdiction. He stated that he will look into the question and follow up on the metrics for Council.

Mayor Evans stated that she is interested in learning if open space is spread throughout the city or localized. Mr. Johnson replied that open space acquisition has been opportunistic at this point.
 
Councilmember Aslan asked about the transit mode share percentages. NAIPTA CEO Erika Mazza spoke about the fact that 73% car utilization is very good for a town of this size. She pointed out the highest mode share of any similar community is 9 to 10%. It is very strong.
 
Vice Mayor Shimoni stated that he sees an opportunity for growth and change looking at the transit mode share percentage graph. He hopes to invest in infrastructure in the future to support non-car transport.
 
Councilmember Whelan suggested that Council be mindful of other modalities with every development and project.
 
Mayor Evans stated that higher density is in the Regional Plan and that every development that supports high density has not been supported by Council. She also stated that the chart is not showing that the mode share percentages have stayed flat but that the population has grown. She stated that there is a nuance to the chart regarding public transportation being not provided at night.
 
Councilmember Whelan stated that she supports the Mayor’s thoughts, but that being on Council is much different than being a community member fighting for their neighborhood.

Vice Mayor Shimoni pointed out that the median income is stagnating and asked about the student growth depicted on the Economic Development graph in the report. Mr. Johnson stated that the percentage took a dip from the early 2000s and that it has caught back to the previous levels. The data are based on five-year trends. Comprehensive and Neighborhood Planning Manager Sara Dechter added that the piece that is important to recognize is that there are 95 metrics and that students influence the metrics. They over-influence the economic metrics because they make up more of that group that influence economic development. Vice Mayor Shimoni asked if the numbers from 2014 were adjusted for inflation. Mr. Johnson stated that they were not adjusted for inflation. Vice Mayor Shimoni also stated that he is happy with the growth of voter participation but that there is a long way to go for full engagement. 

Mayor Evans asked about the Neighborhoods, Housing and Urban Conservation regarding housing costs. She asked if it would be possible to project out the influence on minimum wage. Housing expenses have gone up while wages have stayed flat even with minimum wage increases. Deputy City Manager Shane Dille stated that this question would be addressed in the minimum wage study Council requested. Mayor Evans asked that rent be pulled out of the report and analyzed to see if it has gone up as minimum wage has increased. She would like to see a rent versus purchase report in the future with a comparison of wages.
 
Councilmember Whelan stated that there is a chart in the report that analyzes rent. She stated that even though the minimum wage has gone up, that Flagstaff remains unaffordable.
 
Councilmember Odegaard asked about the timeframe of the minimum wage study. Mr. Dille stated that the RFP is in place and that it is anticipated that the study will be done before the first budget retreat.
 
Councilmember McCarthy asked if there were any studies that compare Flagstaff to other cities that are similar such as Bozeman, Bend, Phoenix, or Tucson regarding transportation costs. Mr. Johnson stated that there have been comparisons and that Flagstaff seems to be somewhere in the middle. The transportation costs in Flagstaff are about 23% of the cost of living, whereas in New York City their transportation costs are about 9%. Ms. Dechter stated that they looked at it regarding High Occupancy Housing and that it is not a part of the Regional Plan Report due to time and staffing constraints. Councilmember McCarthy stated that the focus needs to be on the situation here and what Flagstaff is going to do.
 
Councilmember Whelan added that other cities do not have a state government that slaps their hand for trying new solutions. She stated she would like to see metrics on short-term rentals. Councilmember McCarthy agreed.
 
Vice Mayor Shimoni commented that he is adamant about housing models that undercut the market and trends around them. He would like a menu of options of what other communities are doing. He also commented that he would like to identify good models of infrastructure that promotes other modes of transportation especially with towns with similar climates.
 
City Manager Clifton addressed short-term rentals and stated that staff has had meetings on this to strategize and to discuss third parties to help regulate them. The data will take time to get to Council.
 
Mayor Evans addressed the regulatory constraints that Councilmember Whelan brought up. She stated that it needs to be acknowledged that the state of Arizona has regulatory restraints that other communities do not have and that there is a lot that cannot legally be done. She also acknowledged that she is not interested in under-cutting the market. She is interested in seeing how to assist the market to get homes in the range for citizens to afford. 
 
Vice Mayor Shimoni explained that he was speaking about non-conventional homes and alternative models. He is interested in community living, land trusts, and more.
 
Councilmember McCarthy addressed alternative units for housing like tiny homes and other models and stated that he hopes that the Housing Commission investigates them.
 
A break was held from 7:35 p.m. through 7:45 p.m. 

Fire Chief Mark Gaillard, Management Services Director Rick Tadder, and Fire Management Officer Paul Summerfelt gave a presentation to Council on an overview on the options for the Water Resource and Infrastructure Protection. Fire Chief Gaillard gave a quick update on the Museum Fire and stated that the study on the fire’s impact will be released later that week. He stated that a large part of the fire did not burn in the treatment area and that many acres that had been thinned had high burn or no burn. The thinning treatment had the desired positive effect on the fire. Staff is working on setting up a tour of the area for Councilmembers who are interested.

Councilmember Odegaard asked if the $1.3 million in funding would be used to continue Phase III or for maintenance of the already completed area. Mr. Summerfelt stated the funding was to continue maintenance work and the program as is and for some of the work in Phase III. The funding capacity could also be used as matching funds for future grants.
 
Vice Mayor Shimoni asked about the relief in the 2020 budget. Mr. Summerfelt replied that it was about $200,000. Vice Mayor Shimoni also asked what the County’s responsibility is in the process. Mr. Summerfelt replied that they do not have responsibility. He stated that there are programs: the City’s program and the FWPP Lake Mormon/Lake Mary work.
 
Mr. Tadder took over the presentation to get direction from Council to bring back some options in the spring of next year. He presented several options for consideration by Council. The options were:

• Consumption Based Rate
• Meter Based Rate
• Flat Fee which addresses the $1.3 million need

Councilmember McCarthy asked if the graph on options to consider covered all the potential options. Mr. Tadder stated that the graph covered the other options and went through the financials in detail. The options do not include offsets from the General Fund.
 
Councilmember Whelan asked about reclaimed water and sales. Mr. Tadder stated that they have a meter rate and that they are included. The graph presented covered potable and non-potable water.
 
Councilmember McCarthy asked if reclaimed water and potable water were charged the same. He added that if only potable water was charged, the numbers would be higher if reclaimed water were charged as well.
 
Councilmember Whelan clarified that the numbers included all water. Mr. Tadder stated that it did not include sewer, since consumption is an easier metric to measure than outflow. He added that the third option is different and that the first two options, consumption-based and meter-based are based on the used water. The third option is a flat statement-based charge.
 
Mr. Tadder asked Council for their direction on a Municipal Statement Fee.
 
Councilmember Odegaard asked why the stormwater fee was not considered. Mr. Tadder stated that they did not want things to get too complicated and all things water should be based on consumption.
 
Councilmember McCarthy stated that the Water Commission discussed consumption rates. Residents that have second homes in Flagstaff still need access to the water lines and they suggested looking at meter-based charge. He suggested that two-thirds of the cost be allocated to consumption and one-third would be allocated to a meter-fee.
 
Councilmember Whelan discussed the increase in fire budget during the years. She stated that she would like to look at the current revenues rather than increase fees or taxes. She asked what the funding is for local, state, and federal. Mr. Tadder stated that the $1.3 million is for cash matches for future grants for thinning projects. Councilmember Whelan stated that she is not sure that implementing a fee is the answer for the issue. She would like to see the City looking within before jumping outside for fees. She would like to see the fee called something like fire protection. She stated that the lands are not within City limits and that the City is being forced to take this project on for federal and county lands. She stated that the City is not getting the support from the partners that it needs. She asked what can be done to lessen the impact on Flagstaff citizens. She stated that if it is needed to go out to the community, then it needs to be labeled as such and that the program cannot be let go, but that pressure needs to be placed on the state and the county to assist with this program.

Vice Mayor Shimoni stated that FWPP is an innovative program, yet the pressure to come up with the difference in funds falls on the City of Flagstaff and not the rest of the partners. He does not feel that the fee should fall only on the citizens of Flagstaff. He asked if the cost per citizen for the program was available. Mr. Tadder stated that he does not have the specific numbers at this time. He added that the County will hold a meeting on October 1, 2019 with all the FWPP partners and the City will be in attendance. Vice Mayor Shimoni stated that he is not interested in an additional fee. He stated that he would like to work with the community partners and not discuss implementing a fee until other avenues of funding are explored. He would like to see a hybrid model for funding using the General Fund and a fee if needed.
 
Councilmember Salas asked about the Successful WFM slide regarding the $350,000 not funded/proposed costs. Councilmember Salas stated that she feels that Flagstaff is bearing the burden on forest health and protecting forest health outside city limits without the county’s help. She stated that she feels it is time to get the word out and engage the stakeholders regarding the December 2020 budget. She agreed with the Vice Mayor and Councilmember Whelan to explore the City’s budget and support the operations that way. She stated that she wanted to reach out to the stakeholders to see how they would like to fund this.
 
Mayor Evans reminded the Council that the current water supply for the City does not come from within city limits. The main water supply is located outside the city and the City has an obligation to ensure that the citizens in Flagstaff have access to the water. She stated that if something happened to Lake Mary, the City would have to drill eleven wells and added that there is not enough money to drill those wells in a short period. She stated that the ideal situation should be discussed but that Council should discuss what they will do to ensure uninterrupted access to water for the citizens of Flagstaff. She stated that she feels a short-term plan is necessary in the meantime.
 
Councilmember Odegaard stated that he has been having this discussion for a long time. He asked about the FWPP Bond Project Work from the Wildland Fire Management program and Mr. Tadder stated that the funding is slated for the seasonal crew and for the oversight management of the project. Councilmember Odegaard added that his suggestion is to look at how to make up that 50% funding difference. He would like to explore the budget first and a line item for Wildland Fire Management. He also stated that he likes Councilmember McCarthy’s suggestion of a hybrid fee.
 
Mayor Evans reiterated that if the Council direction is to find money in the budget, then the FWPP budget must be the top priority and would potentially be the only thing in the Council’s priorities.
 
Councilmember Odegaard added that he is willing to forward a bond question for the $8.5 million to the voters.
 
Councilmember Whelan clarified that she thinks that looking inwards first is healthy and should always be done. She stated that she is supportive of the program and that she wants a culture shift in the way of thinking regarding money. She stated that she wants to ensure that if a fee is implemented that she can assure the constituents that they have exhausted all other options.
 
Mayor Evans stated that she recognizes that it is a hard conversation to have and that no one wants to raise fees because the cost of living in Flagstaff is high. There will not be $8.5 million in the Fire Department budget. She added that Council will be going through the budget soon and the gap in funding will be in the millions. The conversation needs to be about a plan to protect the City’s water supply and water source.
 
Vice Mayor Shimoni stated that he would like to see the hybrid approach that Councilmember McCarthy proposed. He also stated that he would like to see the partners brought to the table. He would like to see what the City can do with the budget along with implementing a fee.
 
Councilmember Aslan stated that the efforts must be funded. He would like to find private partners and have a plan in place. He stated that he would be willing to explore options one and two and would like to explore a small base fee and then look at the consumption base rate. He also spoke about limiting the amount of water that can be used in city limits. He added that a fee could be used to check people who are trying to use a lot of water and he would like to explore something on the ballot but not until after polling is done.
 
Councilmember McCarthy stated that he had no interest in increased sales tax or a property tax bond and that there is consensus about the need for ongoing funding. He added that the numbers that Mr. Tadder presented showed the need for partner involvement and that the City should continue having conversations with the partners. He asked what the time frame is for the decision. Mr. Tadder stated that the budget conversations will start in December. Councilmember McCarthy stated that he is happy to have the conversation move forward with the hybrid model.
 
Mayor Evans stated that she believes the fee should be a part of the water rate and that it should be part of the base water rate. She stated that she feels that the discussion should be included in the water rate discussion and encouraged staff to look at the different options through that process.
 
Mr. Tadder stated that the original discussion was to have an additional line for the fee or rate to pay for Wildland Fire Management or FWPP. Mayor Evans would like to have the public be informed about the water rate increases and put a statement on the bill.
 
Mr. Tadder stated that he would like to have some more direction on the bond. Mayor Evans stated that she did not hear majority on moving forward with the bond. The majority stated that they want to leave the bond option on the table after all the options are vetted, expect for option three. Council asked for staff to look at the water rates.
 
Mr. Tadder asked about the current environmental impact fees and if Council was interested in restructuring that fee. Councilmember Whelan asked where the proceeds from the fee are directed and Mr. Tadder replied that the revenues go to the Sustainability Section. Council did not support a restructure.

Public Works Streets Director Scott Overton introduced Zero Waste Coordinator Dylan Lenzen who gave a presentation to Council. Mr. Overton stated that he is looking for direction and that Mr. Lenzen will be back in October for another presentation to Council. Mr. Overton added that the discussion will be very high-level for general direction.
 
The following individuals addressed Council regarding the Animal Keeping Code Revisions:
 
Jason Hartsell stated that he has concerns about the proposed code. He believes that the permitting system is a great idea and asked what the schedule would be for the quarterly inspections and how they would be scheduled. He stated that he also has concerns regarding keeping animals in runs. He also inquired about pre-existing structures and the plans that they already have and asked that a conversation is held about pre-existing structures. He stated that he is also concerned about the costs associated with quarterly inspections. He suggested a lower level of inspection based if an owner has animal handling education and experience.

Councilmember Whelan asked if any of Mr. Hartsell’s neighbors have complained about his chickens. He stated that they have not and that they give eggs to their neighbors.

Ben Brown, who lives in lower Greenlaw, stated that he has a problem with a neighbor with two goats. He stated that the smell is terrible and that mosquitos have increased with the introduction of the goats. He stated they cannot stand to be in their backyard. His deed restriction states that there should be no goats.
 
Councilmember Aslan asked if the new code would make neighbors have to ask for permission to keep animals or just notify neighbors of the animals. Mr. Lenzen stated that there are both options available for discussion.
 
Councilmember Whelan asked if Mr. Lenzen had a guess regarding the number of goats in city limits. Mr. Lenzen stated that there were 40 complaints related to animal keeping, not tied to just goats. He will work on tracking down the number associated with goats and report back to the Council. Councilmember Whelan also asked about the barking ordinance. Mr. Overton stated that there is a nuisance code that applies to barking dogs. Mr. Solomon stated that barking dogs that disturb a person are addressed under the police regulations as a prohibited act day or night.
 
Vice Mayor Shimoni inquired about goats and food security. Mr. Lenzen stated that the pygmy goats provide a small amount of milk and that they seem to be being kept as pets or as breeding stock. Vice Mayor Shimoni also asked where livestock of this size are allowed. Mr. Lenzen stated that small livestock are allowed in all zones in small lot sizes. Vice Mayor Shimoni stated that he thinks chickens should have free run and that he does not think there is adequate staffing for a permitting system. He stated he likes the idea about neighbor approval.
 
Mayor Evans stated that there needs to be a fee for a permit system and there needs to be a program to regulate urban farming with a permitting process and education. She added that the fee could also offset the cost of inspections and stated that she feels that goats should not be allowed. She also stated a concern regarding chicken coops near someone else’s window. She added she would like to see regulations on footage away from a fence and placement on a property and agreed that chickens should be allowed to free roam and that a person could place a fence within a fence. She ended with saying that there needs to be a total number of animals per property and a requirement for cleaning up animal waste.
 
Councilmember McCarthy stated that zoning is in place to prevent the problems that are currently being faced. He added that ideas for rules regulating chickens can be created and if there are rules for where humans can live, there can be similar rules for livestock. He would like to see setback rules as restrictive as they are for humans, but said that neighbor approval for animal keeping is problematic. He stated that reasonable rules for chickens should be made and that goats should have considerable setbacks only in very rural residential. He stated that he feels that permits are a lot of busy work for staff, but he is open-minded on the subject and that he would like to see fewer inspections and investigations based on complaints.
 
Councilmember Aslan stated that there should not be goats in smaller lots and that he believes there should be a permitting process. He added that he would like to see a sliding scale for the frequency of inspections with fewer inspections over time based on previous inspections. He would like to see increased setbacks and is concerned about constricting chickens to runs at all times. He does not feel that it would a good idea to grandfather already owned goats into the code.
 
Councilmember Odegaard is not in favor of having goats in lots under 40,000 sq. ft. As far as permitting, he stated that there is a policy of 100% cost recovery and for consistency, he would like to see the cost of staff time recovered. He is not in favor of quarterly or yearly inspections and have inspections complaint-based. He would like to see the permitting for chicken coops be very simple.
 
Mayor Evans stated that there is not cost recovery on every permit. She stated that some people are raising animals for food and she believes that there needs to be a fee for the permit, but she does not know if there should be a full cost recovery. Councilmember Odegaard stated that he was suggesting a one-time fee. Mayor Evans feels that there should be a fee, but it might not be 100% cost recovery. She added that she does not want to price anyone out of having backyard agriculture. She is concerned about people who are being inconsiderate with the set-up of their chicken coops.
 
Vice Mayor Shimoni stated that he has concerns about an interior property line fence for allowing chickens to roam. He added that he is open to setbacks and is curious to hear more about that from the community. He stated that he is also open to a one-time permit fee and to use a complaint-based process for inspections. He added that he would also like to see an educational piece like a video on backyard agriculture.
 
Councilmember McCarthy stated that the coops might be the only thing addressed by the setback and that he agreed that a one-time permit would be best with complaint-based inspections. He added the thought that the application fee would be determined by the number of animals.
 
Mr. Overton reiterated the direction he heard from Council which included that goats could only be allowed on large lots (over 40,000) with setbacks, that chickens and smaller stocks would need to have setbacks looked at and respectable roaming included, and that a permitting system with sliding scale inspections or complaint-based inspections be included. He added that there could be a goat relocation program.
 
Mayor Evans inquired about pigs. Staff replied that swine are in the large livestock category only. Mr. Dille added that there were some complaints regarding pigs in Greenlaw, but that they were domesticated so they are not covered by the code.

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Jamie Whelan to continue the meeting in accordance with the Council Rules of Procedure.

Vote: 7 - 0 - Unanimously

None.

Councilmember Odegaard thanked everyone and expressed thanks to the whole Council for placing flags to recognize September 11th.
 
Mayor Evans stated that she has a request to turn the City purple for Domestic Violence Awareness month in October. Deputy City Manager Shannon Anderson indicated that there is a proclamation scheduled for October 1, 2019 and that the request for the lights to illuminate the outside of the building is included. She noted that she also has a request to fly the Fallen Soldier flag.
 
Vice Mayor Shimoni stated he would like to see a purple flag flown for October.

The Work Session of September 10, 2019, adjourned at 10:35 p.m.