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CITY COUNCIL REGULAR MEETING AGENDA
A M E N D E D

REGULAR COUNCIL MEETING
TUESDAY
MAY 21, 2024

COUNCIL CHAMBERS
211 WEST ASPEN AVENUE
3:00 P.M.

All City Council Meetings are live streamed on the city's website
(https://www.flagstaffaz.gov/1461/Streaming-City-Council-Meetings)

***PUBLIC COMMENT***

Verbal public comments not related to items appearing on the posted agenda may be provided during the "Open Call to the Public" at the beginning and end of the meeting and may only be provided in person.

Verbal public comments related to items appearing on the posted agenda may be given in person or online and will be taken at the time the item is discussed.

To provide online verbal comment on an item that appears on the posted agenda, use the link below.

ONLINE VERBAL PUBLIC COMMENT

Written comments may be submitted to publiccomment@flagstaffaz.gov. All comments submitted via email will be considered written comments and will be documented in the record as such.

CALL TO ORDER

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 discussion and consultation 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).

ROLL CALL

NOTE: One or more Councilmembers may be in attendance through other technological means.

MAYOR DAGGETT
VICE MAYOR ASLAN
COUNCILMEMBER HARRIS
COUNCILMEMBER HOUSE

COUNCILMEMBER MATTHEWS
COUNCILMEMBER MCCARTHY
COUNCILMEMBER SWEET

PLEDGE OF ALLEGIANCE, MISSION STATEMENT, AND LAND ACKNOWLEDGEMENT

MISSION STATEMENT

The mission of the City of Flagstaff is to protect and enhance the quality of life for all.

LAND ACKNOWLEDGEMENT

The Flagstaff City Council humbly acknowledges the ancestral homelands of this area's Indigenous nations and original stewards. These lands, still inhabited by Native descendants, border mountains sacred to Indigenous peoples. We honor them, their legacies, their traditions, and their continued contributions. We celebrate their past, present, and future generations who will forever know this place as home.

OPEN CALL TO THE PUBLIC

Open Call to the Public enables the public to address the Council about an item that is not on the prepared agenda. Comments relating to items that are on the agenda will be taken at the time that the item is discussed. Open Call to the Public appears on the agenda twice, at the beginning and at the end. The total time allotted for the first Open Call to the Public is 30 minutes; any additional comments will be held until the second Open Call to the Public.

If you wish to address the Council in person at today's meeting, please complete a comment card and submit it to the recording clerk as soon as possible. Your name will be called when it is your turn to speak. You may address the Council up to three times throughout the meeting, including comments made during Open Call to the Public and Public Comment. Please limit your remarks to three minutes per item to allow everyone 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.

PROCLAMATIONS AND RECOGNITIONS

Proclamation: National Travel and Tourism Week

Proclamation: Jewish American Heritage Month

Proclamation: Public Works Week

Proclamation: Asian American and Pacific Islander Heritage Month

COUNCIL LIAISON REPORTS

CONSENT AGENDA

All matters under Consent Agenda are considered by the City Council to be routine. Unless a member of City Council expresses a desire at the meeting to remove an item from the Consent Agenda for discussion, the Consent Agenda will be enacted by one motion approving the recommendations listed on the agenda. Unless otherwise indicated, expenditures approved by Council are budgeted items.

STAFF RECOMMENDED ACTION:

Approve the Consent Agenda as posted.

Consideration and Approval of Grant Agreement: Grant agreement between the U.S. Environmental Protection Agency (EPA) and the City of Flagstaff for the Flagstaff Regional Resilience Project.

STAFF RECOMMENDED ACTION:

Approve Grant Agreement #98T90401 with the Environmental Protection Agency for the Flagstaff Regional Resilience Project in the amount of $1,000,000.

Consideration and Approval of Contract: Construction Manager at Risk Design Phases Services Agreement with C and E Paving & Grading, LLC for the annual Street Maintenance Program 2024, 2025 & 2026, in the amount of $139,943.13.

STAFF RECOMMENDED ACTION:

Approval of the Construction Manager at Risk Design Phases Services Agreement with C and E Paving & Grading, LLC for the annual Street Maintenance Program 2024, 2025 & 2026, in the amount of $139,943.13; and
Authorize the City Manager to execute the necessary documents.

Consideration and Approval of Contract: The Healthy Forest Initiative Grant Agreement between the City of Flagstaff and The Arizona Department of Forestry and Fire Management provides reimbursable funding to parcel owners within the City of Flagstaff and the Summit Fire and Medical District for Wildfire Hazardous Fuel Reduction.

STAFF RECOMMENDED ACTION:

Approve the Grant Agreement with the Arizona Department of Forestry and Fire Management in the amount of $243,750 of which $195,000 is Arizona Department of Forestry and Fire Management share, and $48,750 is homeowner share as part of grant match, and an indirect cost of $22,157 for grant and financial administration.

Consideration of Ratification and Approval of Contract: Cooperative Purchase Contract with Dell Marketing, LP for the IT Section to Purchase Dell Computer Hardware in an amount not to exceed $425,000 for each fiscal year for the term of the Agency Contract.

STAFF RECOMMENDED ACTION:

Approve the Cooperative Purchase Contract with Dell Marketing, LP for the IT Section to Purchase Dell Computer Hardware in an amount not to exceed $425,000 for each fiscal year for the term of the Agency Contract; and
Authorize the City Manager to execute the necessary documents.

Consideration and Approval of Contract: Cooperative Purchase Contract with Morning Dew Landscaping, Inc. for the Cleo Murdoch Neighborhood Park Construction for Phase One in the amount of $344,169.00 through CDBG Project 417C-22

STAFF RECOMMENDED ACTION:

Approve contract with Morning Dew Landscaping, Inc. in the total amount of $344,169.00 to construct phase one of the Cleo Murdoch Neighborhood Park; and
Authorize the City Manager to execute the necessary documents

Consideration and Approval of Agreement: Grant Agreement between the City of Flagstaff and the Gordon and Betty Moore Foundation to initiate a comprehensive, collaborative, and cross-sector initiative to change conditions such that community capacity, awareness of the benefits of fire to forest health, and community-wide smoke readiness have all increased, advancing wildfire resilience and public health.

STAFF RECOMMENDED ACTION:

Ratify year one of a Grant Agreement with the Gordon and Betty Moore Foundation in the amount of $249,850.

ROUTINE ITEMS

Consideration and Adoption of Ordinance No. 2024-15: An ordinance amending the Flagstaff City Code, Chapter 1-14, Personnel System, by amending the Employee Handbook of Regulations, Section 1-50-010 Holiday Leave; providing for repeal of conflicting ordinances, severability, authority for clerical correction, and establishing an effective date.

STAFF RECOMMENDED ACTION:

Read Ordinance No. 2024-15 by title only for the final time
City Clerk reads Ordinance No. 2024-15 by title only (if approved above)
Adopt Ordinance No. 2024-15

Consideration and Adoption: City of Flagstaff Economic Development Strategic Plan 2024-29.

STAFF RECOMMENDED ACTION:

Hear about changes to the plan based on previous Council discussion, ask any additional questions, and approve the plan.

Consideration and Approval of Preliminary Plat: JP325, LLC requests Preliminary Plat approval for Juniper Point, Parcel 2, located at 2000 John Wesley Powell Boulevard, a single-family subdivision of 62 lots on 17.54 (gross) or 11.36 (net) acres in the RR (Rural Residential) Zone utilizing the Planned Residential Development (PRD) option.

STAFF RECOMMENDED ACTION:

Approve the Preliminary Plat in accordance with the findings presented in this report, the following conditions, and the Planning and Zoning Commission recommendation of approval (6-0 vote in favor on April 24, 2024).

The Final Plat shall adjust the plat boundaries to include the remainder of Juniper Point Parcel 1 Tract G.
The Final Plat and Engineering plans shall adjust the plat boundaries to include all areas that are being utilized for Resource Protection calculations.

REGULAR AGENDA

Consideration and Adoption of Resolution No. 2024-17: A resolution approving the City of Flagstaff's 2024 Annual Action Plan and authorizing its submission to the U.S. Department of Housing and Urban Development (HUD)

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-17 by title only
City Clerk reads Resolution No. 2024-17 (if approved above)
Adopt Resolution No. 2024-17

Consideration and Possible Action: Use of the Council Initiative Fund.

STAFF RECOMMENDED ACTION:

Authorize the use of the Council Initiative Fund to support the Flagstaff Community Band and discuss any other programs Council may like to consider funding within this fiscal year's Council Initiative Fund or next fiscal year.

10.

DISCUSSION ITEMS

Water, Sewer, and Reclaimed Water Rates and Fees Study Special Work Session

City staff and the City's Consultant, Stantec, are addressing questions from the City Council related to the assumptions used in the rate model. City staff and Stantec will facilitate a discussion on financial planning scenarios and how those might influence the outcome of the proposed rates for water, sewer, and reclaimed water rates and fees. The desired outcome is for the Council to provide their direction on the financial planning scenarios.

11.

OPEN CALL TO THE PUBLIC

12.

INFORMATIONAL ITEMS TO/FROM MAYOR, COUNCIL, AND STAFF, AND FUTURE AGENDA ITEM REQUESTS

13.

ADJOURNMENT

CERTIFICATE OF POSTING OF NOTICE

The undersigned hereby certifies that a copy of the foregoing notice was duly posted at Flagstaff City Hall on                , at                    a.m./p.m. in accordance with the statement filed by the City Council with the City Clerk.

Dated this                   day of                                          , 2024.

__________________________________________
Stacy Saltzburg, MMC, City Clerk

THE CITY OF FLAGSTAFF ENDEAVORS TO MAKE ALL PUBLIC MEETINGS ACCESSIBLE TO PERSONS WITH DISABILITIES. With 48-hour advance notice, reasonable accommodations will be made upon request for persons with disabilities or non-English speaking residents. Please call the City Clerk (928) 213-2076 or email at stacy.saltzburg@flagstaffaz.gov to request an accommodation to participate in this public meeting.

NOTICE TO PARENTS AND LEGAL GUARDIANS: Parents and legal guardians have the right to consent before the City of Flagstaff makes a video or voice recording of a minor child, pursuant to A.R.S. § 1-602(A)(9). The Flagstaff City Council meetings are live-streamed and recorded and may be viewed on the City of Flagstaff's website. If you permit your child to attend/participate in a televised Council meeting, a recording will be made. You may exercise your right not to consent by not allowing your child to attend/participate in the meeting.

7.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Jenna Ortega, Sustainability Coordinator

Co-Submitter:

Jenny Niemann

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

Consideration and Approval of Grant Agreement: Grant agreement between the U.S. Environmental Protection Agency (EPA) and the City of Flagstaff for the Flagstaff Regional Resilience Project.

STAFF RECOMMENDED ACTION:

Approve Grant Agreement #98T90401 with the Environmental Protection Agency for the Flagstaff Regional Resilience Project in the amount of $1,000,000.

Executive Summary:

The City of Flagstaff has been awarded $1,000,000 in grant funds from the U.S. Environmental Protection Agency through the Environmental Justice Government-to-Government Grant, funded by Congress in the Inflation Reduction Act, 2022 (PL 116-169).

Staff seeks Council's acceptance of the grant award to fund three Resilience Hubs pilots in Flagstaff. These hubs will function as neighborhood centers, addressing community-identified needs by providing resources, services, training, and spaces for building connections to enhance local resilience.

The City of Flagstaff staff will manage the program in partnership with 13 community collaborators, including local community-based organizations, a local business, academic institutions, and Coconino County.

Financial Impact:

Project Name: Flagstaff Regional Resilience Project
Cost: $1,000,000
Account Number Budgeted: 214-12-170-6368-0
FY Budgeted Amount: $1,000,000
Grant Funded: Yes, 100%, $0 required matching funds
Funding Source: U.S. Environmental Protection Agency Environmental Justice Government-to-Government Grant

The grant award provides $1,000,000 of Federal funding for the Flagstaff Regional Resilience Project, with no required matching funds from the City.

This is a three-year grant, which must be fully expended by May 2027. Funds will be disbursed during FY2023-24, FY2024-25, FY2025-26, and FY2026-27.

The allocation of full grant funds is as follows:

Staff/Project Manager

$200,491

Supplies

$58,725

Services

$33,967

Construction

$223,095

Subawards

$446,904

Indirect Costs

$36,818

Total

$1,000,000

In the future, the City may consider supplementing this program to serve more residents. Any additional funding will be requested through the fiscal year budget process.

Policy Impact:

None

Previous Council Decision or Community Discussion:

No previous council decision has been made regarding the acceptance of this grant award. Staff presented an informational presentation on the Flagstaff Regional Resilience Hub project to the City Council on April 9th, 2024.

Options and Alternatives to Recommended Action:

Option A – Approve the grant agreement with the Environmental Protection Agency (EPA) to fund the Flagstaff Regional Resilience Project.
Option B – Decline the acceptance of the grant.

Background and History:

The Flagstaff Regional Resilience Project addresses climate change challenges by building upon the community's resilience and strengths. It seeks to enhance social connections, expand access to services, and foster trust. This grant-funded project will establish three Resilience Hub pilots in Flagstaff. These hubs will function as community spaces offering year-round access to resources, services, training, and support, not limited to crisis periods. Additionally, they will serve as safe spaces, offering heating, cooling, and clean air during emergencies.

Connection to PBB Priorities and Objectives:

Promote environmental justice and the access to environmental benefits.
Advance social equity and social justice in Flagstaff by supporting social services.
Facilitate, develop, and encourage carbon-neutral energy opportunities.
Create a welcoming community through partnerships, resilient neighborhoods.
Support the community's social infrastructure needs; assist those partner organizations that provide services the City does not.
Implement, maintain, and further the Carbon Neutrality Plan (CNP) with awareness of social inequities.
Strengthen Flagstaff's resilience to climate change impacts on built, natural, economic, health, and social systems.

Connection to Regional Plan:

Goal E&C.2: Achieve carbon neutrality for the Flagstaff community by 2030.
- Policy E&C.2.1. Encourage the reduction of all energy consumption, especially fossil-fuel generated energy, in public, commercial, industrial, and residential sectors.
- Policy E&C.2.2. Promote investments that create a more connected and efficient community, decrease emissions from transportation and building energy, and strengthen climate resiliency.
Goal E&C.3. Prepare Flagstaff's community systems and resources to be more resilient to climate change impacts, and address climate change in a manner that prioritizes those most impacted and ensures the costs and benefits of climate adaptation and mitigation are equitably distributed.
- Policy E&C.3.1. Develop and implement a comprehensive and proactive approach to prepare the community for and to minimize the impacts of climate change induced hazards.
- Policy E&C.3.5. Improve the ability of vulnerable community members to adapt and thrive amidst the pressures of climate change.
Goal E.2. Expand production and use of renewable energy.
- Policy E.2.1. Promote renewable energy sources that reduce demand upon fossil fuels and other forms of generation that produce waste.
- Policy E.2.4. Encourage small-scale renewable energy production and use on the local level on appropriate residential, commercial, and industrial parcels.
Goal PF.1.Work across all government operations and services to prepare for the impacts of natural and human caused hazards.
- Policy PF.1.5. Support proactive communication and education aimed at both residents and governmental operations as a means to build individual, organizational, and community resiliency to weather-related impacts and climate-caused or natural disasters.

Connection to Carbon Neutrality Plan:

CR-1: Ensure all mitigation actions improve Flagstaff's ability to adapt to the future.
CR-2: Strengthen existing community systems to create resilience to both short-term shocks and long-term change.
ES-1: Incorporate equity as a foundational element of every climate action the City develops and implements.
ES-2: Proactively engage community members on an ongoing basis.
ES-3: Design targeted climate policies and programs to serve vulnerable communities first.
CE-3: Support solar installations on existing residential and commercial buildings.
HS-2: Prepare for changing risks to public health due to climate change and increase collaborations across agencies to improve health and climate awareness, preparedness, and resilience.
HS-4: Improve the resilience of public infrastructure and City facilities.

Connection to 10-Year Housing Plan:

None

Attachments:

Grant Agreement #98T90401

7.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Jarrett Nelson, Public Works Project Manager

Co-Submitter:

Sam Beckett

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approval of the Construction Manager at Risk Design Phases Services Agreement with C and E Paving & Grading, LLC for the annual Street Maintenance Program 2024, 2025 & 2026, in the amount of $139,943.13; and
Authorize the City Manager to execute the necessary documents.

Executive Summary:

The Public Works Streets Section maintains over 700 lane miles of roadway surface infrastructure for the citizens, regional community members, and visitors. Roadways throughout the City vary in design and capacity. In addition to automobile travel, all modes of transportation are integrated and encouraged within the right of way. Modes of travels such as mass transit, bicycle, and pedestrian opportunities are prevalent and our Streets crews strive to provide transportation infrastructure that is well connected and as safe as possible for travel, regardless of the chosen mode.

The City's annual Street Maintenance Program includes overlay and chip seal projects to improve aging infrastructure within our existing transportation network. Planning efforts include an evaluation of the asphalt surface, edge treatments, recent overlay project sections, roads that meet maintenance need, and road stripe engineering. Once the identified needs are prioritized, Streets utilizes funding provided from two sources to address the needs. The first source of revenue is Highway User Revenue Funds (HURF), or what's commonly referred to as the gas tax, a state shared revenue. The second source of revenue provided is sales tax proceeds collected as a result of the 2014 voter approved Road Repair and Street Safety Program (RRSS).

This Council action, if approved, will allow Streets to engage local contractor C and E Paving & Grading, LLC, as the Construction Manager at Risk (CMAR) for the annual Street Maintenance Program 2024, 2025 & 2026 by entering into the Design Phase Services Agreement. It is anticipated that at a future City Council meeting, Staff will bring forward for approval, the Construction Phase Services Agreement - GMP1, for overlay and chip seal projects for 2024, utilizing and improving the community transportation infrastructure.

Financial Impact:

Project Name: Road Repair and Street Safety Design and Construction
Cost: $139,943.13 (Design Phase)
Account Number Budgeted: 040-06-162-3073-6-4443 (HURF) and 046-06-163-3321-6-4443 (RRSS)
FY2023-2024 Budgeted Amount: $13,644,075
Grant Funded: No
Funding Source: Highway User Revenue Fund (HURF) and Proposition 406 - Road Repair & Street Safety Tax (approved 2014)

Policy Impact:

The award of the CMAR Design Phase Services Agreement to C & E Paving and Grading, LLC will initiate the delivery of the annual Street Maintenance Program 2024, 2025 & 2026. Upon adoption of a subsequent CMAR Construction Phase Services Agreement and GMP1, the overlay and chip seal work will ensure that the City is maintaining its streets and providing for a well-protected and increased overall condition index for our roadways. The City of Flagstaff community continues to support initiatives creating and maintaining quality infrastructure throughout our transportation network. This project help meet the community driven goal of providing a safe and effective transportation network.

Previous Council Decision or Community Discussion:

The City Council has approved CMAR Design Phase Services Agreements, and subsequent Construction Phase Services Agreements, in previous years for annual Street Maintenance Programs. Transportation maintenance programs has been a topic of discussion in previous sessions. Direction and feedback has been provided in multiple forums, such as the goal setting process, the annual budgetary process, and community service delivery expectation discussions. Clear direction has been provided to maintain our transportation system, establish asset inventory, deliver capital renewal programs and meet the community expectations.

Options and Alternatives to Recommended Action:

Background and History:

The City has established an annual program to maintain existing street pavements. The program includes three major elements: non-structural upgrades of asphalt overlay, minor concrete repairs, accessibility improvements including sidewalk/ramp replacement and chip sealing. The citizens of Flagstaff approved the Road Repair and Street Safety Maintenance Program (RRSS) (Prop. 406). This is a dedicated sales tax providing funding of $100 million over 20 years. The annual program has been aggressively addressing capital projects that have been identified to be in a high state of disrepair on the front end of the program with strong support for annual maintenance until the sales tax sunsets in 2034. The overlay and chip seal street segments are selected after evaluation of the street condition using pavement management asset software. Each street pavement is assigned an overall condition index (OCI) based on the type and severity of the distress observed. A pavement that has no distress is given an OCI of 100. Each pavement distress such as cracking or roughness reduces the street's OCI. The street pavements are ranked by OCI and the pavements exhibiting the most severe distress are programmed for resurfacing treatments and improvements. Chip seal techniques are also used to protect recently overlaid sections to prolong the life of the asphalt surface.

The Arizona State Legislature has authorized the use of Alternative Project Delivery Methods (APDM) as a method of project delivery. Included in these delivery methods the City of Flagstaff can procure a construction team utilizing a Qualifications Based Selection process for construction services from a firm deemed most qualified to perform the work. The enabling legislation also allows for provision of multiple Guaranteed Maximum Prices (GMP) under a single procurement.

At the March 17, 2020, City Council meeting, Council approved the award of the initial Professional Engineering Design Phase Services contract for the 2020, 2021 and 2022 programs to Peak Engineering, Inc. Two contract extensions have been utilized in both 2023 and 2024. Working collaboratively with City staff and C and E Paving & Grading, LLC, the team will develop the annual program, costing evaluation, project scheduling, design document review, prioritization of roadway segments, logistics, quantity estimating, and preparation of final construction documents.

On behalf of the City of Flagstaff Streets Department, COF Procurement posted a formal solicitation to PlanetBids on March 6, 2024, to hire a Construction Manager at Risk (CMAR) pertaining to the Street Maintenance Program 2024, 2025, 2026. On March 16 & 23, 2024, City of Flagstaff Procurement team advertised a Request for Statement of Qualifications in the Arizona Daily Sun. Closing date for this request was March 29, 2024. The Team received one (1) statement of qualification. An evaluation team of City staff and one design professional reviewed the statement and agreed to request approval from Council to award C & E Paving to hold the CMAR contract for the annual Street Maintenance Program 2024, 2025, 2026. The proposed Design Phase Services Agreement is the initial step towards beginning this project.

Connection to PBB Priorities and Objectives:

The Road Repair/Street Safety- 163 (3321) is a community program designed to ensure the City's transportation system performs at the highest level possible by resurfacing aged and damaged road surfaces across the city, while also ensuring pedestrian access and safety through the sidewalk infill program.

Connection to Regional Plan:

Transportation and Public Infrastructure - Deliver quality community assets and continue to advocate and implement a highly performing multi-model transportation system.

Connection to Carbon Neutrality Plan:

The asphalt mix design used in the overlay portion and chip seal binders for the project has recycled asphalt incorporated into the mix, thus reducing the usage of new fossil fuels. In addition, maintaining a smooth and consistent roadway surface decreases the fuel consumption of the vehicles utilizing it.

Connection to 10-Year Housing Plan:

N/A

Attachments:

2024-65 C and E Paving CMAR Design Phase Agreement

Exhibit A & B

7.C.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Mark Adams, Wildland Community Risk Reduction Specialist

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

STAFF RECOMMENDED ACTION:

Executive Summary:

This project will complete approximately 75 acres of selective tree thinning and debris disposal on prioritized parcels pre-identified to this grant through active outreach campaign for targeted priority areas of Flagstaff. The overall goal is to reduce/eliminate excessive and dense ponderosa forest stands, to improve forest health, and lowering the risk of future wildfire hazard fuels and insect infestations increase Firewise and survivable space in the identified neighborhoods. Before and after photos will document our success, with a goal of reducing hazardous fuels by 40%. This will be verified during final inspection of work completed by contractors, ensuring that 90% of marked fuels have been removed. To facilitate this work, we have conducted an active and on-going outreach effort targeting specific neighborhoods and individual stakeholders, recruited homeowners interested in the long-term management of these parcels, and educating them on the responsibility to improve forest health and wildland hazardous reduce fuels on their properties.

Financial Impact:

Project Name: 2025 Greater Flagstaff Wildland Fire Hazard Reduction
Cost: $243,750
Account Number Budgeted: 070-03-053-6277-2-4290
FY2024-25 Budgeted Amount: $198,000
Grant Funded: Yes, with homeowner match
Funding Source: Arizona Department of Forestry and Fire Management

Policy Impact:

None

Previous Council Decision or Community Discussion:

Council has previously approved hazardous fuels reduction grants with the Arizona Department of Forestry and Fire Management (AZDFFM) with similar guidelines as this AZDFFM grant.

Options and Alternatives to Recommended Action:

Council has the option to not ratify this agreement which would prevent $195,000 of financial benefit to property owners for reducing the wildfire hazard on their property.

Connection to PBB Priorities and Objectives:

High Performing Governance: Implement innovative local government programs
Safe and Healthy Community: Ensure built environment is safe through the use of consistent standards, rules and regulations, & land use practices
Environmental Stewardship: Promote, protect & enhance a healthy, sustainable environment & its natural resources
Environmental Stewardship: Strengthen Flagstaff's resilience to climate change impacts on built, natural, economic, health, & social systems

Connection to Regional Plan:

Regional Plan Environmental Planning & Conservation — Vision for the Future: In 2013, the long-term health and viability of our natural resource environment is maintained through strategic planning for resource conservation and protection.
Policy E&C.3.3 — Invest in forest health and watershed protection measures.
Policy E&C.6.1 — Encourage public awareness that the region's ponderosa pine forest is a firedependent ecosystem and strive to restore more natural and sustainable forest composition, structure, and processes.
Policy E&C.6.3 — Promote protection, conservation, and ecological restoration of the region's diverse ecosystem type and associated animals.
Policy E&C.6.6 — Support collaborative efforts for forest health initiatives or practices, such as the Four Forest Restoration Initiative (4FRI), to support healthy forests and protect our water system.
Policy E&C.10.2 — Protect, conserve, and when possible, enhance and restore wildlife habitat on public land.

Connection to Carbon Neutrality Plan:

HF-1: Protect existing forests, resources, and meaningful open spaces
HF-2: Restore and maintain the natural fire-adapted structure and pattern of the forests of the greater Flagstaff region through collaboration with partners.
HF-3: Educate the public on forest health and wildfire risk reduction.

Connection to 10-Year Housing Plan:

Connect 3.2 Encourage neighborhoods, housing types, and building practices that increase health.

Connection to Division Specific Plan:

Connection to Division Specific Plan:
Connection to FFD 2023 - 2024 Strategic Plan: Service Level Goals: Increase community outreach & Reduce risks through Prevention & WFM efforts Standardization and Improved Partnership Goals: Advance Community Risk Reduction measures

Attachments:

Unsigned grant document

7.D.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Paul Santana, IT Manager

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approve the Cooperative Purchase Contract with Dell Marketing, LP for the IT Section to Purchase Dell Computer Hardware in an amount not to exceed $425,000 for each fiscal year for the term of the Agency Contract; and
Authorize the City Manager to execute the necessary documents.

Executive Summary:

This fiscal year to date the City of Flagstaff has spent approx. $282,417 with Dell Marketing, LP for the purchase of various computer hardware including personal computers (PCs), laptops, docks, and monitors. Staff seeks approval of a Cooperative Purchase Contract with Dell Marketing, LP to allow Staff to continue to purchase necessary computer hardware, to facilitate our standard end-user device replacement process.

City Council has budgeted for these purchases and staff has determined that it is in the best interest of the City to enter into a contract with Dell Marketing, LP with a "not-to-exceed" amount of $425,000 total for each fiscal year to purchase Dell Computer Hardware. It is anticipated that future need under the duration of this Cooperative Purchase Contract will be similar, and the requirements of the Cooperative Purchase Contract will allow for flexibility in purchasing within the budgeted amounts for future fiscal years for the term of the Agency Contract.

Financial Impact:

There is cost for these purchases in the calculated and budgeted amount of $425,000. This cost has been budgeted in the following Information Technology account: 001-01-014-0043-1-4301, as well as other division's accounts containing the - 4301 Computer Equipment object code.

Policy Impact:

None

Previous Council Decision or Community Discussion:

None

Options and Alternatives to Recommended Action:

Approve the Cooperative Purchase Contract with the flexibility to allow the IT Section to purchase Dell Computer Hardware in an amount not to exceed $425,000 for each fiscal year for the term of the Agency Contract; or
Not approve the Cooperative Purchase Contract. If not approved City of Flagstaff IT would need ot reconsider our current computer provider, which would constitute a complete restructure of our imaging, support, and computer upgrading environment, This would result in substantial time and resources shift away from Dell Computer Hardware to consider alternative computer manufacturers, but would severely hinder our ability to replace and support existing devices in the short to mid term.

Background and History:

The City of Flagstaff Information Technology Division routinely considers and evaluates our suppliers to ensure we are providing the best solutions and services to our customers, City of Flagstaff employees, and computer providers are no exception to this policy. Staff seeks to use a State of Arizona cooperative purchase contract to enter into an agreement with Dell Marketing, LP to be a provider of end user computing devices based on the factors of performance, price, service, serviceability, compatibility, durability, and design.

NASPO ValuePoint conducted a competitive and open procurement process that resulted in Contract No. 23026 between the State of Arizona and Dell Marketing, LP The City of Flagstaff Procurement department has verified that the State of Arizona cooperative purchase contract is valid. While the underlying State of Arizona cooperative purchase contract expires on June 30, 2025, there is an option to extend up to additional 36 months.

Connection to PBB Priorities and Objectives:

Provide Exceptional Service: Provide employees tools, training and support.
Safe & Healthy Community: Provide public safety with the resources, staff, and training to respond to community needs.

Connection to Regional Plan:

None

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Connection to Division Specific Plan:

IT Mission Statement: Our purpose is to provide the secure tools to make your job easier tomorrow than it was today. Regular device replacement supports this goal of ensuring every employee who needs a computer has access to a secure, high performance device.

Attachments:

Dell Marketing, LP Cooperative - City IT

7.E.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Amy Hagin, Assistant Parks and Recreation Director

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approve contract with Morning Dew Landscaping, Inc. in the total amount of $344,169.00 to construct phase one of the Cleo Murdoch Neighborhood Park; and
Authorize the City Manager to execute the necessary documents

Executive Summary:

Approval of this contract will allow for Phase One of the Cleo Murdoch Neighborhood Park to be developed inclusive of the sitting area adjacent to the Murdoch Center in the Southside Neighborhood. Phase One is inclusive of 1,800 square feet of turf, new irrigation, accessible walkways, pavers, and a block storage structure.

Financial Impact:

Project Name: Cleo Murdoch Neighborhood Park
Cost: $344,169.00
Account Number Budgeted: GL 021-05-108-6109-4-4290
FY2024-25 Budgeted Amount: $344,193
Grant Funded: Yes
Funding Source: CDBG

Policy Impact:

None

Previous Council Decision or Community Discussion:

Yes, a previous Council decision to award the Community Development Block Grant funds to this neighborhood park development through the Program Year 2022 Annual Action Plan.

Options and Alternatives to Recommended Action:

Consider and approve a contract with Morning Dew Landscaping, Inc. in the total amount of $344,169.00 to construction phase one of the Cleo Murdoch Neighborhood Park; or
Provide different direction to staff on securing contractual construction services

Background and History:

The project was approved in the CDBG funds allocated and identified for Cleo Murdoch Neighborhood Park for park creation and improvements through the Program Year 2022 Annual Action Plan. The Phase One improvements will create the new park.

The City of Flagstaff (COF) Procurement representative worked with the Coconino County Procurement Director to find an agency contract for the COF to utilize for services. Coconino County Flood District has a Job Order Contract (JOC) with Morning Dew Landscaping Inc that also includes the ability to use grant funding for the projects. JOC 2023-105 through the Coconino County Flood District will be used as a piggyback cooperative contract to achieve the project end results.

Connection to PBB Priorities and Objectives:

Livable Community, Inclusive & Engaged Community

Connection to Regional Plan:

LU.6, LU.11, LU.13, NH.1, REC.1

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Connection to Division Specific Plan:

Creation of this neighborhood park will bring a new public park to the Southside neighborhood, which was an important component included in the Southside Community Plan.

Attachments:

Cooperative Purchase Contract

7.F.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Neil Chapman, Forest Health Supervisor

Co-Submitter:

Nicole Antonopoulos

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

STAFF RECOMMENDED ACTION:

Ratify year one of a Grant Agreement with the Gordon and Betty Moore Foundation in the amount of $249,850.

Executive Summary:

The City's Fire Department's Wildland Fire Management program (WFM) and Sustainability Division have been working with the Gordon and Betty Moore Foundation on national wildfire risk reduction efforts since 2021. In December 2023, discussions were initiated to include WFM in the Moore Foundations Wildfire Resilience Initiative (https://www.moore.org/initiative-strategy-detail initiative=wildfire-resilience-initiative).

The Wildfire Resilience Initiative aims to support a transformation in the role that fire plays and is perceived to play in Western North America, from an unwanted, destructive threat to a vitalizing element in our landscapes. This new partnership will increase the Sustainability Division's and WFM's level of service in the City of Flagstaff's natural and built environment. The Gordon and Betty Moore Foundation will benefit from the City of Flagstaff providing significant experience and local lessons learned to their Wildfire Resilience Initiative. This is year one of a ten-year initiative.

Grant Outcome: By April 2025, a comprehensive, collaborative, and cross-sector initiative will have been launched to change conditions such that community capacity, awareness of the benefits of fire to forest health, and community-wide smoke readiness have all increased, advancing wildfire resilience and community health.

Objective 1. Improve Wildfire Resilience in the Greater Flagstaff Region by increasing community knowledge of resilient landscapes and beneficial fire-focused management, through staff training and expanded planning efforts.
Objective 2. Identify and utilize a novel system of parcel-level data collection that has been identified and used for community-level wildfire risk reduction and is informing statewide partnerships to address the emerging insurance crisis.
Objective 3: Wildfire resilience capacity has improved locally and statewide by launching a new forum for collaboration to provide support and leadership for the use of prescribed fire across Arizona.
Objective 4. Public knowledge of and access to forest health, wildfire, and smoke data has increased, helping to reduce risk to community health and safety.
Objective 5: Community resilience to smoke event-related health impacts has increased.

Financial Impact:

Project Name: Fire Adapted Flagstaff: Reconnecting the health of the people with the health of the land
Cost: $249,850
Account Number Budgeted:214-12-170-6397-0-XXXX
FY Budgeted Amount: $250,000
Grant Funded: $249,850
Funding Source: Gordon and Betty Moore Foundation

Policy Impact:

Funding supports existing programs and community-wide plans.

Previous Council Decision or Community Discussion:

This is a novel program and grant to support the Sustainability and Wildland Fire Management programs as identified in the Carbon Neutrality Plan and the 2023-2024 Fire Department Strategic Plan. While the City Council and the Flagstaff community are familiar with the ecological, economic, and public health benefits of effective forest and fire management, no previous discussions about this specific partnership or grant have taken place.

Options and Alternatives to Recommended Action:

The City Council has the option to not ratify this agreement. This will delay implementation and could result in the potential loss of Gordon and Betty Moore Foundation funding commitments. Year 1 funding includes financing to support an update to the critical Community Wildfire Protection Plan. The current Sustainability and Wildland Fire Management level of services would be maintained, but not increased.

Connection to PBB Priorities and Objectives:

Priority Based Budget Key Community Priorities and Objectives

High Performing Governance: Implement innovative local government programs
Safe and Healthy Community: Ensure built environment is safe through the use of consistent standards, rules and regulations, & land use practices
Environmental Stewardship: Promote, protect & enhance a healthy, sustainable environment & its natural resources
Environmental Stewardship: Strengthen Flagstaff's resilience to climate change impacts on built, natural, economic, health, & social systems

Connection to Regional Plan:

Regional Plan
Environmental Planning & Conservation – Vision for the Future: In 2013, the long-term health and viability of our natural resource environment is maintained through strategic planning for resource conservation and protection.

Policy E&C.3.3 – Invest in forest health and watershed protection measures.
Policy E&C.6.1 – Encourage public awareness that the region's ponderosa pine forest is a fire-dependent ecosystem and strive to restore more natural and sustainable forest composition, structure, and processes.
Policy E&C.6.3 – Promote protection, conservation, and ecological restoration of the region's diverse ecosystem type and associated animals.
Policy E&C.6.6 – Support collaborative efforts for forest health initiatives or practices, such as the Four Forest Restoration Initiative (4FRI), to support healthy forests and protect our water system.
Policy E&C.10.2 – Protect, conserve, and when possible, enhance and restore wildlife habitat on public land.

Connection to Carbon Neutrality Plan:

Carbon Neutrality Plan

HF-1: Protect existing forests, resources, and meaningful open spaces
HF-2: Restore and maintain the natural fire-adapted structure and pattern of the forests of the greater Flagstaff region through collaboration with partners.
HF-3: Educate the public on forest health and wildfire risk reduction.

Connection to 10-Year Housing Plan:

Connect 3.2

Encourage neighborhoods, housing types, and building practices that increase health.

Connection to Division Specific Plan:

Connection to FFD 2023 - 2024 Strategic Plan:
Service Level Goals: Increase community outreach & Reduce risks through Prevention& WFM efforts
Standardization and Improved Partnership Goals: Advance Community Risk Reduction measures

Attachments:

Grant Agreement #12623

8.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Jennifer Caputo, Human Resources Manager

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

STAFF RECOMMENDED ACTION:

Read Ordinance No. 2024-15 by title only for the final time
City Clerk reads Ordinance No. 2024-15 by title only (if approved above)
Adopt Ordinance No. 2024-15

Executive Summary:

Flagstaff City Council discussed and provided direction to add two new City holidays at their retreat of December 14, 2023. These holidays include Juneteenth, which will be recognized each year on June 19th and Indigenous Peoples' Day, which will be recognized each year on the second Monday in October.

Financial Impact:

The financial impact of adding two new City holidays is $214,000.

Policy Impact:

The Employee Handbook amendment being considered modifies the language to include the two new City holidays which will be recognized each year on June 19th for Juneteenth and on the second Monday in October for Indigenous Peoples' Day.

Previous Council Decision or Community Discussion:

The Council discussed and gave direction to advance the two new holidays at their retreat on December 14, 2023.

Options and Alternatives to Recommended Action:

Not approve the additional two holidays.

Background and History:

1. Adopt the ordinance.
2. Update the ordinance.
3. Suggest an alternative to the ordinance.

Connection to PBB Priorities and Objectives:

High Performing Governance
Be an inclusive employer of choice

Inclusive and Engaged Community
Facilitate and foster equity, diversity, and inclusivity

Connection to Regional Plan:

None

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Attachments:

Ord. 2024-15

Addendum 36

8.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

David McIntire, Community Investment Director

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

Consideration and Adoption: City of Flagstaff Economic Development Strategic Plan 2024-29.

STAFF RECOMMENDED ACTION:

Hear about changes to the plan based on previous Council discussion, ask any additional questions, and approve the plan.

Executive Summary:

The City of Flagstaff's Economic Development Program has retained Stiletto: Make A Point through a Request for Qualifications process in order to have its expertise and assistance in crafting an Economic Development Strategy for the next five years. The draft plan was developed with significant public input and had Council discussion during the April 23, 2024, City Council Work Session. Comments from that discussion and other interested party input have informed changes to the plan which will be discussed in the presentation.

Adoption of the plan will provide the city's staff, and the Economic Development Program in particular, with guidance on specific areas to focus on and sectors of strength. This is intended to ensure a robust and resilient economy.

Financial Impact:

The plan will guide investments of Bed Board and Beverage (BBB) Economic Development funding and may influence investments in partners or other areas of the City. There is no direct financial impact from adoption of the plan.

Policy Impact:

The City of Flagstaff's Economic Development Program has been successfully working from a group of specific focus areas including advanced manufacturing, bio-medical, digital products and others. While the Economic Development Program will work with any business in our community, or interested in Flagstaff's market, these focus areas guide investments and programming. This new strategic plan is intended to provide data driven and community centered updates that will allow us to respond to changes in the economic landscape locally and beyond. The policy impacts may shift in terms of which sectors receive additional focus and guidance in the plan may inform staff of where specific actions and tasks will provide the greatest return on investment. This document, similar to others within the organization, will provide direction on efforts and on ways to measure success.

Previous Council Decision or Community Discussion:

Council provided feedback on the draft plan on April 23, 2024.

Options and Alternatives to Recommended Action:

Council may adopt the plan.

Council may provide additional direction to be included and adopt the plan contingent on those amendments.

Council may ask for changes in the document and for it to come back for further deliberation.

Council may reject the plan and provide direction on alternative methods for receiving direction.

Connection to PBB Priorities and Objectives:

This plan will assist in:
Robust and Resilient Economy - the plan is focused on Economic Development strategies.
High Performing Government - the plan ensures staff are focused on data and community driven focus areas.
Sustainable and Innovative Infrastructure - the plan identifies key infrastructure investments that will enhance economic resilience.

Connection to Regional Plan:

Goal ED.1 Create a healthy environment for business by ensuring transparent, expeditious and predictable government processes.
Goal ED.3 Regional economic development partners support the start-up, retention and expansion of existing business enterprises.
Goal ED.4 Support efforts to recruit diverse new businesses and industries compatible with the region.
Goal ED.7 Continue to promote and enhance Flagstaff's unique sense of place as an economic development driver.

Connection to Carbon Neutrality Plan:

CR-2 - Strengthen existing community systems to create resilience.
HF-4 - Support innovation in forest health and the wildland sectors.
EP-1 - Accelerate the transformation to a low-carbon economy that minimizes emissions and spurs innovation.
EP-2 - Support the adaptation of local businesses as the climate changes and the economic landscape shifts.

Connection to 10-Year Housing Plan:

This plan acknowledges that a focus on infrastructure, especially on housing supply and affordable housing, is critical.

Create 5: Explore regulatory efficiencies and cost savings practices

Attachments:

ED Strategic Plan 24-29

Presentation

8.C.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Wesley Welch, Planner

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

STAFF RECOMMENDED ACTION:

The Final Plat shall adjust the plat boundaries to include the remainder of Juniper Point Parcel 1 Tract G.
The Final Plat and Engineering plans shall adjust the plat boundaries to include all areas that are being utilized for Resource Protection calculations.

Executive Summary:

JP325, LLC requests Preliminary Plat approval for Juniper Point, Parcel 2, located at 2000 John Wesley Powell Boulevard, a single-family subdivision of 62 lots on 17.54 (gross) or 11.36 (net) acres in the RR (Rural Residential) Zone utilizing the Planned Residential Development (PRD) option. The site has a Resource Protection Overlay and is currently vacant. It is located directly east of the current Juniper Point Parcel 1 subdivision and in the southwestern portion of the Juniper Point development site.

Financial Impact:

There are no financial impacts associated with this Preliminary Plat.

Policy Impact:

There are no policy impacts affiliated with this Preliminary Plat.

Previous Council Decision or Community Discussion:

City Council has previously approved the subdivision plat for Juniper Point Parcel 1 on 9/1/2020.

Options and Alternatives to Recommended Action:

1. Approve the Preliminary Plat with conditions, as recommended by the Planning and Zoning Commission.
2. Approve the Preliminary Plat with new, modified, or no conditions.
3. Deny the Prelminary Plat based on non-compliance with the Zoning Code, the Subdivision Code and/or the Engineering Design Standards and Specifications for New Infrastructure.

Background and History:

The applicant, JP325, LLC, is seeking preliminary plat approval for a 62-lot single-family residential subdivision. The property is located in the southwest portion of the city, north of Pine Canyon residential subdivision and south of Interstate 40, and approximately one-half mile southeast of the Coconino Community College, Lone Tree Road campus. The subdivision is located within the Resource Protection Overlay (RPO) zone and includes steep slope areas and Ponderosa Pine forest.

There is one portion of the site that is currently under development, Juniper Point Parcel 1. This subdivision was developed with the PRD mechanism and provided 38 lots on 17.23 acres. The remainder of the parcel, identified as Tract "G", was saved for future development. This preliminary plat for Juniper Point Parcel 2 is utilizing this tract for its development and will end up creating another tract for future development, minus what is used for Parcel 2.

The development of this subdivision will be a part of APN 104-14-010, with a portion of that parcel becoming a new tract for future development. The applicant currently has multiple submittals for the site, including Juniper Point Parcel 3 preliminary plat, Juniper Point South concept plat, and Juniper Point 95 concept plat and rezone

Connection to PBB Priorities and Objectives:

Livable Community - Provide amenities and activities that support a healthy lifestyle
Livable Community - Actively support attainable and affordable housing through City projects and opportunities with developers.
Livable Community - Achieve a well-maintained community through comprehensive & equitable code compliance, & development that is compatible with community values.
Environmental Stewardship - Actively manage and protect all environmental and natural resources.

Connection to Regional Plan:

Goal E&C.7. Give special consideration to environmentally sensitive lands in the development design and review process.
Policy E&C7.2. Favor the use of available mechanisms at the City and County level for the preservation of environmentally sensitive lands, including but not limited to public acquisition, conservation easements, transfer of development rights, or clustered development with open space designations.
Goal CC.1 Reflect and respect the region's natural setting and dramatic views in the built environment.
Goal CC.3 Preserve, restore, enhance, and reflect the design traditions of Flagstaff in all public and private development efforts.
Goal LU.3 Continue to enhance the region's unique sense of place within the urban, suburban, and rural context.
Goal LU.5 Encourage compact development principles to achieve efficiencies and open space preservation.
Goal NH.1. Foster and maintain healthy and diverse urban, suburban, and rural neighborhoods in the Flagstaff region.

Connection to Carbon Neutrality Plan:

HF-1 Protect existing forests, resources, and meaningful open spaces.

Connection to 10-Year Housing Plan:

Create 4.1 Review and amend the Planned Residential Development (PRD) standards and process to address barriers for infill development and allow for more flexibility in development options, building types, and lot configurations.

Attachments:

P+Z Staff Report

Application

Vicinity Map

Preliminary Plat

Review Agency Notifications

City Council Presentation

9.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Kristine Pavlik, Housing and Grants Administrator

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-17 by title only
City Clerk reads Resolution No. 2024-17 (if approved above)
Adopt Resolution No. 2024-17

Executive Summary:

This staff summary is for the approval of the City of Flagstaff's 2024 Annual Action Plan (AAP) that is a required submission to the U.S. Department of Housing and Urban Development (HUD) as part of the Community Development Block Grant (CDBG) program. This document identifies how the anticipated 2024 CDBG allocation will address Flagstaff's community needs identified in the 2021-2025 Consolidated Plan and how funding will be distributed within Flagstaff city limits.

The Annual Action Plan is due to HUD after the City of Flagstaff receives notification of it's Program Year 2024 Entitlement Allocation. Timely submission of the Annual Action Plan will enable the City to continue its annual allocation of CDBG funding.

Financial Impact:

Approval of the above resolution is critical to the City of Flagstaff receiving its annual CDBG entitlement allocation. The CDBG entitlement amount for Program Year 2024 is $588,146.00. In addition to the funding allocated by HUD, the City of Flagstaff is able to include program income and de-obligated funds from prior years to increase the amount available for allocation. These additional funds equal $187,313.00. Therefore, a grand total of $775,459.00 is available for CDBG-eligible projects for the 2024 Program Year, through the City of Flagstaff Annual Action Plan. The proposed allocation takes into consideration administrative costs and the City's financial impacts by including the indirect rate of 10%. The total FY2024-25 Budget for CDBG activities is $1.7M in account numbers 021-05-108-6105-4 through 021-05-108-6121-4 in the Housing and Community Service Fund.

Policy Impact:

The Flagstaff City Council's CDBG Priorities (established January 2023):

Provide affordable housing (rental and ownership)
Address homelessness
Support neighborhood revitalization
Workforce development (including job training and lifespan education)

Connection to PBB, Carbon Neutrality Plan, 10-Year Housing Plan & Regional Plan:

Priority Based Budgeting

High Performing Governance
- Encourage public trust through transparency, accessibility & use of the City's public participation policy
- Implement innovative local government programs, new ideas & best practices; be recognized as a model for others to follow
Safe & Healthy Community
- Support social services, community partners & housing opportunities
- Provide alternative responses, resources & programs, inclusive of mental health & other services
Inclusive & Engaged Community
- Foster community pride & civic engagement by increasing opportunities for public involvement, in line with best practices & legal requirements
- Advance social equity & social justice in Flagstaff by supporting social services
- Facilitate & foster diversity & inclusivity, including support of anti-racist policies & practices
- Enhance community involvement, education & regional partnerships to strengthen the level of public trust
- Ensure city facilities, services, & programs are accessible for all residents & representative of Flagstaff's diverse community
Sustainable, Innovative Infrastructure
- Support the community's social infrastructure needs; assist those partner organizations that provide services the City does not
Robust Resilient Economy
- Support & strengthen a more robust, diverse, & sustainable economy in ways that reflect community values & provides for affordable housing opportunities
- Enhance understanding between the development community, the City & Flagstaff residents
- Enhance the community's workforce development programs & improve partnerships with higher education institutions & the private & public sectors
Livable Community
- Support regional partners which provide equitable & inclusive educational opportunities for Flagstaff residents of all ages
- Actively support attainable & affordable housing through City projects & opportunities with developers
Environmental Stewardship
- Implement, maintain & further the Climate Action & Adaptation Plan (CAAP) with awareness of social inequities

Regional Plan

Goal NH.1. Foster and maintain healthy and diverse urban, suburban, and rural neighborhoods in the Flagstaff region.
- Policy NH.1.1. Preserve and enhance existing neighborhoods.
Goal NH.3. Make available a variety of housing types at different price points, to provide housing opportunities for all economic sectors.
- Policy NH.3.1. Provide a variety of housing types throughout the City and region, including purchase and rental options, to expand the choices available to meet the financial and lifestyle needs of our diverse population.
- Policy NH.3.3. Increase the availability of affordable housing for very low-income persons, through innovative and effective funding mechanisms
Goal NH.4. All housing is safe and sanitary.
- Policy NH.4.1. Expand the availability of affordable housing throughout the region by preserving existing housing, including housing for very low-income persons. Policy NH.4.2. Reduce substandard housing units by conserving and rehabilitating existing housing stock to minimize impacts on existing residents.
- Policy NH.4.3. Address accessibility issues and other housing barriers to persons with disabilities or special needs.
- Policy NH.4.4. Encourage green practices in housing construction and rehabilitation that support durable, healthy, and energy efficient homes.
- Policy NH.4.5. Renovate the existing housing stock to conserve energy and reduce utility and maintenance costs for owners and occupants.
- Policy NH.4.6. Consider and integrate public transportation, when possible, in planning housing developments, to help reduce a household's transportation costs and minimize impact on the community's roads and transportation system.
- Policy NH.4.7. Enforce compliance with fair housing laws.
Goal NH.5. Eliminate homelessness.
- Policy NH.5.1. Provide adequate resources for families with children experiencing homelessness.
- Policy NH.5.2. Provide adequate resources for individuals experiencing homelessness.
- Policy NH.5.3. Support and expand programs that prevent homelessness.
- Policy NH.5.4. Make transitional housing resources available to populations experiencing homelessness

Carbon Neutrality Plan

Community resilience
- CR-1: Ensure all mitigation actions improve Flagstaff's ability to adapt to the future.
- CR-2: Strengthen existing community systems to create resilience to both short-term shocks and long-term change.
Equitable systems
- ES-2: Proactively engage community members on an ongoing basis
- ES-4: Actively seek to recognize past harms, repair trust, and build deeper relationships with community members.

10 Year Housing Plan

Connect people to equitable housing solutions.
- Connect 1: Reduce homelessness in the Flagstaff community and seek creative solutions to foster housing permanency for all.
  - Connect 1.3 Continue to support and develop Coordinated Entry as a meaningful process that provides linkages to healthcare, behavioral health, and housing
- Connect 2: Implement a framework for centering equity in proposed and existing housing practices, policies, and programs.
  - Connect 2.1 Evaluate housing policies and strategies in City of Flagstaff planning documents through an equity lens.
  - Connect 2.2 Encourage community organizations such as local Continuum of Care to continue to integrate equity into programs and policies.
- Connect 3: Integrate healthcare into housing programs, and housing into healthcare programs, as appropriate.
  - Connect 3.1 Raise awareness of housing security as a social determinate of health
  - Connect 3.2 Encourage neighborhoods, housing types and building practices that increase health.
  - Connect 3.3 Work in partnership with the community to develop and promote community health measurement data collection into housing services when viable
Preserve affordable housing
- Preserve 1: Encourage the adaptive reuse of buildings.
  - Preserve 2.2 Acquire and rehabilitate already built properties for affordable housing projects when financially feasible.
Protect people from housing discrimination and remove housing barriers.
- Protect 1: Continue Flagstaff's commitment to further Federal and Arizona Fair Housing laws in all housing-related services and programs, valuing the efforts of those who seek to reduce barriers to equitable housing opportunities, and providing Fair Housing education and resources to the community.

Has There Been Previous Council Decision on This:

Staff received Council direction on Council CDBG priorities during the January 23, 2023 Council meeting which are identified in Policy Impact above and Background/History below.

Housing Staff presented an overview of CDBG applications received and the ranking committee and staff recommendations for CDBG funding allocations to the Housing Commission on March 28, 2024. The Housing Commission unanimously passed a motion to forward these recommendations to City Council with a recommendation for approval. Along with this recommendation, the Housing Commission also wanted to acknowledge that the location of the proposed Resource Center is located in a neighborhood with an existing concentration of social services.

Housing Staff presented these recommendations to City Council during the April 9, 2024, City Council work session. Council indicated lack of support for moving forward with the funding for the CATS request in the Housing category and directed staff to identify an alternate activity to utilize the funds in the Housing category.

Options and Alternatives:

Approve Resolution No. 2024-17 and authorize the submission of the Annual Action Plan to HUD.
Modify Resolution No. 2024-17 and authorize the submission to HUD.
Not approve Resolution No. 2024-17 and risk losing the 2024 and future CDBG allocations

Background and History:

In order to receive CDBG funding, the City must complete and submit to the HUD the required 2024 Annual Action Plan. This plan describes how CDBG entitlement funds will be used in the coming Program Year and how the annual entitlement will be allocated to meet community needs identified in the 2021-2025 Consolidated Plan.

Through the 2024 CDBG process, the City of Flagstaff Housing Section received 5 external proposals in response to the Notice of Funding Available (NOFA) released on January 24, 2024. Housing Staff identified a project by Flagstaff Shelter Services where health and safety needs were identified after the grant application deadline.

Per Council direction received on April 9, 2024 staff has identified an alternate activity for funding in the Housing category. Staff is recommending funding for Housing Solutions of Northern Arizona for the acquisition assistance for two rental units.

Staff has submitted internal requests on behalf of these partner agencies.

Housing staff are responsible for determining whether a proposed activity is eligible and conducting a risk assessment of the project as well as the applying agency. Federal funds require administrative knowledge and capacity to ensure compliant and timely expenditure of funds. Additionally, a Ranking Committee comprised of three community representatives and two City staff met to review the external proposals and rank them by consensus. Rankings primarily serve as a risk and benefit assessment and are the guiding input for staff recommendations brought to the Housing Commission and forwarded to City Council.

Below is a list of the proposals, in ranking order. The proposals are divided between Housing and Public Service categories as HUD requires two separate funding limits and different criteria. Housing Staff has included two internal requests for projects on behalf of partner agencies. These were identified after Council direction to identify projects for CDBG funding due to a lack of proposals submitted. The projects and agencies have been determined low risk, and the unmet needs are in line with City Council priorities. Because of this, the internal requests are not ranked (NR) competitively with the other proposals.

Housing Activities	Proposed Project	Requested Funding	Ranking
Community Assistance Teams (CATS) of Flagstaff	Resource and Day Center - Property Acquisition	$200,000.00	111.6
Staff Request on behalf of Flagstaff Shelter Services	Safety Improvements at The Lantern	$252,113.00	NR
Staff Request on behalf of Housing Solutions of Northern Arizona	Acquisition assistance for 2 Affordable Rental Units	$250,000.00	NR

Public Service Activities	Proposed Program	Requested Funding	Ranking
Coconino County Health and Human Services	Senior Nutrition Program	$44,200.00	125.6
Community Assistance Teams (CATS) of Flagstaff	Mobile Shower and Outreach Bus	$50,000.00	125.5
Boys and Girls Club of Flagstaff	Childcare and School Break Camps	$75,000.00	107.9
Pearl Transit Corp. (Did not meet the threshold for ranking)	Oral Health Outreach and Services	$60,000.00	NR

Key Considerations:

To receive continued CDBG funding, the City must complete an AAP that describes how CDBG funds will be used in the coming year and how the activities will accomplish the goals outlined in the 2021-2025 Consolidated Plan. The creation of the Consolidated Plan is an extensive process involving public and stakeholder input (gathered through surveys, public meetings, and a 45-day public comment period), community needs assessments, and a housing market analysis. The data outlined in the Con Plan helps determine the relative priority of activities and the populations that will be served in the coming years with federal funds.

HUD allows two priority designations – high and low. Assignment of priority does not reflect a lack of need for any particular population or activity; it merely identifies those conditions that are most likely to be addressed with limited CDBG funding.

High (H) priority activities are likely to be funded with CDBG resources during the next five years.
Low (L) priority activities may be funded as opportunities arise.

Special Populations are certain clientele that are presumed by HUD to be low/moderate income and are defined as senior citizens, severely disabled adults, persons living with AIDS, battered spouses, abused children, the homeless, illiterate adults, or migrant farm workers. (HUD Terminology)

The table attached summarizes the 5-Year Consolidated Plan Goals, outlining associated CDBG activities, the priority level, and 5-year numeric goals for each. Activities that will be targeted to special populations are also indicated.

The table is designed to meet HUD requirements.

5-Year Consolidated Plan Goals
Activities	Special Population	Priority Level	5-Year Goal
Neighborhood Revitalization, Public Facilities & Infrastructure
Neighborhood Facility and Infrastructure Improvements		High	3,000 Individuals
Public Facilities	X	High	100 Individuals
Acquisition for Affordable Housing Development		Low	3 Units
Public Services & Economic Opportunities
Services to Meet Basic Needs	X	High	300 Individuals
Workforce Development	X	Low	15 Individuals
Housing Stabilization		High	50 Individuals
Addressing Homelessness
Service and Facility Operating Support	X	High	1,500 Individuals
Increase Shelter Beds/Units		High	15 Beds/Units
Providing Decent Affordable Housing
Housing Rehabilitation	X	High	20 Units
Housing Development		High	3 Units
Housing Assistance		High	50 Households

Community Benefits and Considerations:

The CDBG entitlement amount for Program Year 2024 is $588,146.00. In addition to the funding allocated by HUD, the City of Flagstaff is able to include program income and de-obligated funds from prior years to increase funding available for allocation. These additional funds equal $187,313.00. Therefore, a grand total of $775,459.00 is available for CDBG-eligible projects for the 2024 Program Year, through the City of Flagstaff Annual Action Plan. The proposed allocation takes into consideration administrative costs and the City's financial impacts by including an indirect rate of 10%

2024 CDBG Funding Recommendations
Funding recommendations are made after an extensive risk assessment and based on the eligibility of the project, adherence to CDBG regulations, and alignment with Council CDBG priorities and goals within the Consolidated Plan. A Ranking Committee comprised of community members (including members of the Housing Commission) and staff reviews and ranks all proposals to inform staff recommendations.

Below is the CDBG funding available and associated recommendations for the 2024 Annual Action Plan:

2024 Funding Available

PY 2024 Entitlement Allocation

$588.164.00

Program Income (PI)
De-obligated funds from Prior Program Years

$142,000.00
$45,313.00

Total Funding Available for Allocation

$775,459.00

Planning and Administration Funding Recommendation
Federal CDBG regulations do not allow more than 20% of funds to be spent on Planning and Administration activities; allowable administrative funding for Program Year 2024 equals $134,691.80. To ensure compliance with HUD funding caps, the recommended allocation is rounded down to $134,000.00.

Below are the 2024 funding recommendations for the Administration category:

Administration and Indirect (20% Maximum)

Grant Compliance and Administration
City of Flagstaff Indirect - 10%

$69,854.00
$64,146.00

Total Administration and Indirect

$134,00.00*

*Rounded down to ensure compliance with 20% Administrative Cap

Public Service Funding Recommendation
Federal CDBG regulations do not allow more than 15% of funds to be spent on Public Service Activities: $101,018.85 or Program Year 2024. Staff recommends funding the highest ranking application in full, splitting the remaining funding between CATS of Flagstaff and Boys and Girls Club of Flagstaff. After receiving the final PY2024 Entitlement allocation, staff has increased each allocation by an equal percentage.

Below are the funding recommendations for the Public Service Category:

Public Service Activities (15% Max)	Proposed Program	Requested Funding	Staff Recommendation	Ranking
Coconino County Health and Human Services	Senior Nutrition Program	$44,200.00	$46,134.00	125.6
Community Assistance Teams (CATS) of Flagstaff	Mobile Shower and Outreach Bus	$50,000.00	$26,933.00	125.5
Boys and Girls Club of Flagstaff	Childcare and School Break Camps	$75,000.00	$26,933.00	107.19
Total Public Service Allocation			$100,000.00*

*Rounded down to ensure compliance with 15% Public Services Cap

Housing Activity Funding Recommendation
After the above-recommended allocations, there is $541,459.00 in CDBG funding available for Housing Activities. Based upon Council direction received during the April 9, 2024 meeting, Staff recommends allocating the remaining funds to internal Staff requests made on behalf of Flagstaff Shelter Services and Housing Solutions of Northern Arizona.

The below chart compares each project's intended impact and the number of beneficiaries, with the goals outlined in the 2021-2025 Consolidated Plan to demonstrate the Community Benefit of the CDBG funding recommendations.

Below are the funding recommendations for the Housing Category:

Housing Activities	Proposed Project	Requested Funding	Staff Recommendation	Ranking
Community Assistance Teams (CATS) of Flagstaff	Resource and Day Center - Property Acquisition	$200,000.00	$0 - per Council direction received on April 9, 2024	111.6
Staff Request on behalf of Flagstaff Shelter Services	Safety Improvements at The Lantern	Not Applicable	$270,729.50	Not Ranked
Staff Request on behalf of Housing Solutions of Northern Arizona	Acquisition assistance for 2 Affordable Rental Units	Not Applicable	$270,729.50	Not Ranked
Total Housing Activity Allocation			$541,459.00

.
The chart below details the 2024 CDBG funding and allocation recommendations:

2024 CDBG Funding Allocation Recommendations
Proposed Project/Program	Recommended Funding	Beneficiaries	Con Plan Activity	Con Plan 5-Year Goal
Housing Solutions of Northern Arizona - Property Acquisition	$270,729.50	2 Households / 2 Units	Housing Development	3 Units
Flagstaff Shelter Services - Safety Improvements at The Lantern	$270,729.50	103 Shelter Beds/Units 400 Individuals	Increase Shelter Beds Public Facility Improvements	15 Shelter Beds/Units 100 Individuals
Coconino County Health and Human Services - Senior Nutrition Program	$46,134.00	120 Individuals	Services to Meet Basic Needs	300 Individuals
Community Assistance Teams of Flagstaff - Mobile Shower and Outreach Bus	$25,000.00	250 Individuals	Service and Facility Operating Support	1,500 Individuals
Boys and Girls Club of Flagstaff - Childcare Scholarships	$25,000.00	25 Youth	Services to Meet Basic Needs	300 Individuals
Total Housing and Public Services Activities			$641,459.00
Total Administration and Indirect			$134,000.00

Total 2024 CDBG Allocation			$775,459.00

Total Individuals Proposed to be Served in Program Year 2024			103 Shelter Beds/Units 2 Affordable Housing Units 1047 individuals (approx. 392 households)

Community Involvement:

Public participation requirements for the Annual Action Plan offer extensive community involvement and collaboration, ranging from public meetings and public comment periods to a ranking committee and Housing Commission recommendations, these requirements are outlined in the Council-adopted CDBG Citizen Participation Plan.

In preparing the Annual Action Plan, the City encouraged public input by contacting public and private agencies that provide housing or human services, neighborhood organizations, and citizens. The City held three meetings to solicit public input on the past year's project performance and recommendations for new project allocations for the upcoming program year. Public meetings included:

Discussion of the amount of CDBG funds expected to be available including program income and prior year's funds not yet allocated to project use;
The full range of HUD activities that may be undertaken with the funding being discussed;
The amount of resources that will be directed to low and moderate-income households; and
The uses of funds in the prior years

Public Participation

Public Meeting: Community Input on use of CDBG funding in target neighborhoods and Citywide - January 18, 2024

Display advertisement (January 9, 2024 – AZ Daily Sun)

Discussed the purpose and content of the Consolidated/Annual Action Plan
Received public comments regarding community needs and priorities
Discussion of the type and amount of Federal funds anticipated to be available and eligible activities
Discussion with City of Flagstaff Capital Improvement, Planning, and PROSE departments, as applicable, regarding upcoming City projects in target areas.

Public Meeting: Presentation regarding Program Year 2024 Annual Action Plan and Notice of Funding Available - January 24, 2024

Display advertisement (January 9, 11, and 16, 2024 – AZ Daily Sun)
Meeting to discuss the CDBG proposal process and the Annual Action Plan

Discussed the purpose and content of the Consolidated Plan/Annual Action Plan
Received public comments regarding community needs and priorities
Discussion of the type and amount of Federal funds anticipated to be available and eligible activities
Discussion of the City's CDBG open proposal process and accessibility of NOFA

Public Meeting: Public Comment on PY 2024 Annual Action Plan and Proposals Received - February 29, 2024

Display advertisement (February 6 and 13, 2024 – AZ Daily Sun)
Meeting to review the submitted proposals and allow public comment in preparation of funding recommendations and Annual Action Plan

Presentation by City staff of activities proposed to be undertaken and funded
Open discussion of the proposed activities
Discussion of estimate of the low-income benefit related to proposed activities
Discussion of displacement issues and City anti-displacement policy
Presentation by staff of draft Annual Action Plan

Open Grant Process:

NOFA (Notice of Funding Available) Released - January 24, 2024
Proposals due to the City of Flagstaff on February 26, 2024
Proposal Ranking Committee with Citizen Participation and Staff on March 20, 2024

Public Comment Period for Draft documents posted on City of Flagstaff Housing Section Website:
Annual Action Plan - March 5 – April 5, 2024

Display advertisement (January 9, 11, and 16, 2024 – AZ Daily Sun)
Display advertisement (February 6 and 13, 2024 – AZ Daily Sun)

Public Meeting: Presentation to City of Flagstaff Housing Commission - March 28, 2024

Presentation by City staff of the Annual Action Plan and recommendations for funding
Open public hearing regarding activities proposed to be undertaken
Recommendation for approval to City Council

Public Meeting: City Council Work Session City Council Work Session – April 9, 2024

Presentation and discussion with City Council regarding the 2024 Annual Action Plan
Request for City Council input and direction
Comments may be submitted by mail or email, or citizens may provide public comment at the meeting

Public Meeting: City Council Meeting – May 21, 2024

Consideration and Approval of Resolution No. 2024-17 and authorizing the submission of the Annual Action Plan to HUD.

With efforts to attract a diverse group of social service agencies, emails were distributed to all members of Coconino County's Continuum of Care (approx. 300 members). Additionally, agencies that had previously requested information and/or had been involved in the CDBG proposal process in prior years received personal invitations. The proposal format was provided at the January 24, 2024, public meeting and placed on the City website with a submission deadline of February 26, 2024. Advertisements were also placed in the Arizona Daily Sun, the City of Flagstaff Housing Section Newsletter, mailing list, and web page as well as on Instagram and Facebook.

Attachments:

Res. 2024-17

Draft Annual Action Plan

Presentation

Summary of CDBG Proposals

9.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Stacy Saltzburg, City Clerk

Date:

05/14/2024

Meeting Date:

05/21/2024

TITLE:

Consideration and Possible Action: Use of the Council Initiative Fund.

STAFF RECOMMENDED ACTION:

Executive Summary:

Please see attached letter from Flagstaff Community Band.

Financial Impact:

Cost: Up to $4,000
Account Number Budgeted: 001-09-401-1300-1-4290
FY24 Budgeted Amount: $26,100.00
Funding Source: General Fund

Authorized expenditures this year include $1,555 for sponsorship of the Downtown Movies on the Square, $10,000 for the sponsorship of Earth at Lowell Observatory, $5,000 in support of the Youth Poet Laureate, and $4,444 in support of the 1501 Foundation.

Policy Impact:

None

Previous Council Decision or Community Discussion:

None

Options and Alternatives to Recommended Action:

None

Background and History:

The Council Initiatives Fund was established and included in the 2020-21 Budget. The formation of this particular fund was not driven by any singular request or need, but rather as a proactive measure to enable our City Council to approve unforeseen expenditures, from time to time, that would be of benefit to the Flagstaff community. The fund is limited in amount ($25K annual appropriation) and it does not rollover or accumulate. It is an annual appropriation.

There are numerous instances throughout the course of the fiscal year where Council may want to approve miscellaneous expenditures, for the benefit of our community, that simply do not fall neatly within a specific budget appropriation. This fund is intended to allow Council some discretion to approve such expenditures. There is no established process for doing so, other than majority support. We of course always need to stay within our legal parameters and our City Attorney can advise accordingly. Similarly, such matters should be identified on the Council meeting agenda, as an action item.

Connection to PBB Priorities and Objectives:

The Council Initiative fund is intended to support all Council goals, objectives and priorities.

Connection to Regional Plan:

None

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Attachments:

Flagstaff Community Band Letter to Council

Flagstaff Community Band Donor Packet

Elevate Pre-K Letter to Council

Presentation

10.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Co-Submitter:

Erin Young, Water Services Manager, and Shannon Jones, Water Services Division Director

Date:

05/16/2024

Meeting Date:

05/21/2024

TITLE:

Water, Sewer, and Reclaimed Water Rates and Fees Study Special Work Session

DESIRED OUTCOME:

Executive Summary:

City staff and Stantec have been discussing the rate study components with the Water Commission and City Council since September 2023. There have been discussions about financial planning; capacity fees; rate design priorities; water, sewer, and reclaimed water rates; and miscellaneous fees. During today's presentation, City staff will provide an update to Council on the most recent outreach efforts that continue to provide awareness to the community about the rate study and the proposed rates. City staff will share information about the water services division, operations and maintenance, capital improvements, and the impacts of the proposed rates. This conversation will lead us to the four financial planning scenarios for Council consideration. This is a continuation of the discussion from May 16, 2024.

Information:

City Council and the Water Commission have committed a significant amount of time learning about the rate study process, policy strategies, financial planning, cost-of-service details, and potential rate designs to create the proposed water, sewer, and reclaimed rates. All of this information is available on the cleanwaterflagstaff.com website. The team of Stantec and City staff members have worked to build a rate calculator that is available on this website, so community members and businesses are able to see what their water and sewer bills may look like for the upcoming five years based on the proposed rates. The group has invested in radio, print, social media, and digital advertising to provide outreach and educational opportunities. In this presentation the team will share some of the outcomes of this outreach and what efforts will continue over the next few months.

During the last several months of meetings, there have been discussions about revenue needs and the opportunities available to meet those financial needs. City staff will spend time during today's presentation providing the operational details behind these numbers. Sharing how these revenues are used to maintain service and what happens when there are shortages or unexpected challenges. The capital improvement plan makes up a large portion of the water services revenue needs and City staff will provide an explanation of the approved, informed, and unfunded capital project lists and how this looks across the community. These future revenue needs are built upon assumptions and staff will provide background on how the assumptions in the rate model were derived based on today's experiences. Given altering these assumptions can result in different outputs, Stantec has created four financial planning scenarios to demonstrate how changing assumptions on growth, cost escalation, debt or CIP execution can alter the resulting proposed rates.

*Please note the attached financial planning scenarios presentation still includes drafts of updated rate projections and bill impacts. These will be finalized following the completion of Stantec's quality control review process.

Attachments:

Water, Sewer, and Reclaimed Water Rate Study

Financial Planning Scenarios

Rate Study Proposed CIP