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CITY COUNCIL REGULAR MEETING AGENDA

REGULAR COUNCIL MEETING
TUESDAY
JUNE 4, 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: Gun Violence Awareness Day

COUNCIL LIAISON REPORTS

APPOINTMENTS

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 the City Council may vote to go into executive session, which will not be open to the public, for the purpose of discussing or considering employment, assignment, appointment, promotion, demotion, dismissal, salaries, disciplining or resignation of a public officer, appointee, or employee of any public body...., pursuant to A.R.S. §38-431.03(A)(1).

Consideration of Appointments: Beautification and Public Art Commission.

STAFF RECOMMENDED ACTION:

Make three appointments to terms expiring June 2027.

LIQUOR LICENSE PUBLIC HEARINGS

Applications under Liquor License Public Hearings may be considered under one public hearing and may be acted upon by one motion unless otherwise requested by Council.

STAFF RECOMMENDED ACTION:

Open the Public Hearing
Staff Presentation
Council Questions
Public Comment
Close Public Hearing
Council Deliberation and Action

The City Council has the option to:

Forward the application to the State with a recommendation for approval;
Forward the application to the State with a recommendation for denial based on the testimony received at the public hearing and/or other factors.

Consideration and Action on Liquor License Application: Mikal Charles Antunez, "D-Luxe Barbershop," 18 N. Leroux Street, Series 07 (Beer and Wine Bar), Location/Owner Transfer

STAFF RECOMMENDED ACTION:

Forward the application to the State with a recommendation for approval;
Forward the application to the State with a recommendation for denial based on the testimony received at the public hearing and/or other factors.

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 Contract: Purchase of two (2) 10-Wheel Snowplow Dump Trucks from RWC Group LLC

STAFF RECOMMENDED ACTION:

Approve the equipment purchase for two (2) 2025 International HX520 SFA Heavy Duty plow trucks from RWC Group, LLC in the amount of $782,210.11 through cooperative purchase contract #CTR069476 with the Arizona Department of Administration, State procurement office and;
Authorize the City Manager to execute the necessary documents.

Consideration and Approval of Construction Services Contract: Approve the Contract with Major League Painting Inc. for Painting Downtown Green Assets

STAFF RECOMMENDED ACTION:

Approve the Contract with Major League Painting, Inc in the amount of $168,181.75 to cover costs for all personnel, equipment, tools, materials, supervision, and services for the painting and finishing of specified assets within the boundaries of Route 66 and Cherry Ave, spanning from Humphrey to Verde Streets in municipal green.
Authorize the City Manager to execute all necessary documents.

Consideration and Approval of Contract: Approval of a Construction Manager at Risk Construction Phase Services Agreement for the Street Maintenance Program and approve GMP 1 to C and E Paving & Grading, LLC.

STAFF RECOMMENDED ACTION:

Approve the Construction Manager at Risk (CMAR) Construction Phase Services Agreement with C and E Paving & Grading, LLC for the Street Maintenance Program 2024, 2025 & 2026 for a Guaranteed Maximum Price (GMP) of $6,376,102.20; and
Approve GMP 1 authorizing C and E Paving & Grading, LLC to execute the 2024 Street Maintenance Program; and
Authorize the City Manager to execute the necessary documents.

Consideration and Approval of Contract: Cooperative Purchase Contract with Carollo Engineers, Inc. for Engineering Services on the Fort Tuthill Well Pump House #2 in an amount not to exceed $499,988.00.

STAFF RECOMMENDED ACTION:

Approve the Cooperative Purchase Contract with Carollo Engineers, Inc. for Engineering Services on the Fort Tuthill Well Pump House #2 in an amount not to exceed $499,988.00; and
Authorize the City Manager to execute the necessary documents.

Consideration and Approval of Contract: Approval of the Cooperative Purchase Contract with PFVT Motors, LLC dba Peoria Ford for the purchase of Four 2023 Ford Explorer Police Interceptors for the Flagstaff Police Department in the amount of $211,955.44.

STAFF RECOMMENDED ACTION:

Approval of the Cooperative Purchase Contract with PFVT Motors, LLC dba Peoria Ford for the purchase of Four 2023 Ford Explorer Police Interceptors for the Flagstaff Police Department in the amount of $211,955.44; and
Authorize the City Manager to execute the necessary documents.

Consideration and Approval of Council Meeting Schedule Adjustment: Reschedule the August 27, 2024 regular meeting to August 26, 2024.

STAFF RECOMMENDED ACTION:

Reschedule the Tuesday, August 27, 2024 meeting to Monday, August 26, 2024.

Consideration and Approval of Letter of Support: Letter of Support to advance the Northeastern Arizona Indian Water Rights Settlement Act

STAFF RECOMMENDED ACTION:

Approve the Letter of Support

10.

REGULAR AGENDA

Consideration and Adoption of Resolution No. 2024-25: A resolution of the Council of the City of Flagstaff, Arizona adopting the tentative budget for Fiscal Year 2024-2025.

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-25 by title only
City Clerk reads Resolution No. 2024-25 by title only (if approved above)
Adopt Resolution No. 2024-25

Consideration and Adoption of Resolution No. 2024-24: A resolution of the Flagstaff City Council adopting the City of Flagstaff Public Safety Personnel Retirement System Pension Funding Policy; delegating authority; and establishing an effective date.

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-24 by title only
City Clerk reads Resolution No. 2024-24 by title only (if approved above)
Adopt Resolution No. 2024-24

Consideration and Adoption of Resolution No. 2024-23: A resolution of the Flagstaff City Council, designating its Chief Fiscal Officer for officially submitting the fiscal year 2024-2025 expenditure limitation report to the Arizona Auditor General, and establishing an effective date.

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-23 by title only
City Clerk reads Resolution No. 2024-23 by title only (if approved above)
Adopt Resolution No. 2024-23

Consideration and Adoption of Resolution No. 2024-26: A resolution of the Flagstaff City Council, amending the Procurement Code Manual, Article 4 and adding Article 32 and establishing an effective date.

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-26 by title only
City Clerk reads Resolution No. 2024-26 by title only (if approved above)
Adopt Resolution No. 2024-26

Consideration and Adoption of Resolution No. 2024-22 and Ordinance No. 2024-16: A resolution of the Flagstaff City Council declaring as a public record that certain document filed with the City Clerk and entitled "2024 amendments to chapters 2-03, 2-13, 2-14, 2-20, and 3-06 of the city code related to the parks and recreation commission, tourism commission, beautification and public art commission, open spaces commission, and hospitality industry tax revenues" and An ordinance of the City Council of the City of Flagstaff, amending the Flagstaff City Code, Title 2, Boards and Commissions, Chapters 2-03, Parks and Recreation Commission, 2-13, Tourism Commission, 2-14, Beautification and Public Art Commission, and 2-20, Open Spaces Commission, and Title 3, Business Regulations, Chapter 3-06, Hospitality Industry Tax Revenues, by adopting by reference that certain document entitled "2024 Amendments to Chapters 2-03, 2-13, 2-14, 2-20, and 3-06 of the City Code Related to the Parks and Recreation Commission, Tourism Commission, Beautification and Public Art Commission, Open Spaces Commission, and Hospitality Industry Tax Revenues," providing for repeal of conflicting ordinances, severability, clerical corrections, and establishing an effective date.

STAFF RECOMMENDED ACTION:

At the June 4, 2024 Council Meeting:
1) Read Resolution No. 2024-22 by title only
2) City Clerk reads Resolution No. 2024-22 by title only (if approved above)
3) Read Ordinance No. 2024-16 by title only for the first time
4) City Clerk reads Ordinance No. 2024-16 by title only (if approved above)
At the June 18, 2024 Council Meeting:
5) Adopt Resolution No. 2024-22
6) Read Ordinance No. 2024-16 by title only for the final time
7) City Clerk reads Ordinance No. 2024-16 by title only (if approved above)
8) Adopt Ordinance No. 2024-16

11.

DISCUSSION ITEMS

Discussion and Direction following Council's Revisions to Water, Wastewater, and Reclaimed Water Model Assumptions and Resulting Rates

STAFF RECOMMENDED ACTION:

The desired outcome is for the Council to confirm their recommended rate model revisions to develop the final rates package for Council consideration at the June 18 and July 2 public hearings.

12.

FUTURE AGENDA ITEM REQUESTS

After discussion and upon agreement by three members of the Council, an item will be moved to a regularly-scheduled Council meeting.

Future Agenda Item Request (F.A.I.R.):A request by Councilmember McCarthy to place on a future agenda a discussion regarding towing and car storage charges and the use of cash versus credit cards.

STAFF RECOMMENDED ACTION:

Council Direction

Future Agenda Item Request (F.A.I.R.):A request by Councilmember Matthews to place on a future agenda a discussion about expanding the Employer Assisted Housing program and how to expand the program to local employers for workforce housing using incentives.

STAFF RECOMMENDED ACTION:

Council Direction

13.

OPEN CALL TO THE PUBLIC

14.

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

15.

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:

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

Consideration of Appointments: Beautification and Public Art Commission.

STAFF RECOMMENDED ACTION:

Make three appointments to terms expiring June 2027.

Executive Summary:

The Beautification and Public Art Commission consists of seven citizens, and recommends expenditures from the BBB beautification fund and the public art portion of the Arts and Science fund. It studies and recommends community beautification projects ranging from landscaping and irrigation, signs and billboards, buildings, street-scapes, gateways, the purchase and installation of public art projects within beautification projects, and property acquisition for beautification and/or public art and neighborhood-initiated projects, to mention a few. There are currently three open seats due to term expiration. It is important to fill vacancies on Boards and Commissions quickly to allow the Commission to continue meeting on a regular basis. The City of Flagstaff is committed to increasing diversity in every board and commission, please consider how the applicant stated they may contribute to this commitment.

There are seven applications on file for consideration by the Council, they are as follows:

Robert "Dan" Duke (new applicant)
Erin Gardner (new applicant)
Carla McCord (current commissioner)
Matt McGrath (current commissioner)
Michael Rulon (new applicant)
Audra Travelbee (new applicant)
Genelyn Tuliao (new applicant)

In an effort to reduce exposure to personal information the applicant roster and applications will be submitted to the City Council separately.

COUNCIL APPOINTMENT ASSIGNMENT: Councilmember Matthews, Councilmember Harris, and Councilmember McCarthy

Financial Impact:

These are voluntary positions and there is no budgetary impact to the City of Flagstaff.

Policy Impact:

Not applicable.

Previous Council Decision or Community Discussion:

None.

Options and Alternatives to Recommended Action:

Appoint three Commissioners: By appointing members at this time, the Beautification and Public Art Commission will be at full membership, allowing the group to meet and provide recommendations to the City Council.
Postpone the action to allow for further discussion or expand the list of candidates.

Connection to PBB Priorities and Objectives:

Inclusive and Engaged Community - Foster community pride and civic engagement; advance social equity and social justice in Flagstaff; facilitate and foster diversity and inclusivity; and enhance community outreach and engagement opportunities.

Connection to Regional Plan:

None.

Connection to Carbon Neutrality Plan:

None.

Connection to 10-Year Housing Plan:

Connect 2.2: Encourage community organizations such as the local Continuum of Care to continue to integrate equity into programs and policies.

Attachments:

BPAC Authority

8.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

Consideration and Action on Liquor License Application: Mikal Charles Antunez, "D-Luxe Barbershop," 18 N. Leroux Street, Series 07 (Beer and Wine Bar), Location/Owner Transfer

STAFF RECOMMENDED ACTION:

Forward the application to the State with a recommendation for approval;
Forward the application to the State with a recommendation for denial based on the testimony received at the public hearing and/or other factors.

Executive Summary:

The liquor license process begins at the State level and applications are then forwarded to the respective municipality for posting of the property and holding a public hearing, after which the Council recommendation is forwarded back to the State. A Series 07 beer and wine bar license allows a beer and wine bar retailer to sell and serve beer and wine, primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises. A Series 07 license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. D-Luxe Barbershop is an existing business in Flagstaff and they are requesting a location/owner transfer. They purchased the license from Drayton, Inc. in April 2024. If approved, it will be the 26th active series 07 license in Flagstaff. To view surrounding liquor licenses, please visit the Active Liquor Licenses Map.

The property has been posted as required, and the Police and Community Development divisions have reviewed the application and provided their respective reports.

Financial Impact:

There is no budgetary impact to the City of Flagstaff as this is a recommendation to the State.

Policy Impact:

Not applicable.

Previous Council Decision or Community Discussion:

Not applicable.

Options and Alternatives to Recommended Action:

Key Considerations:
Because the application is for a location and owner transfer, consideration may be given to the personal qualifications of the applicant and the location.

The deadline for issuing a recommendation on this application is June 24, 2024.

Community Involvement:
This business will contribute to the tax base of the community. We are not aware of any other relevant considerations.

Expanded Options and Alternatives:
The application was properly posted on May 14, 2024. No written protests have been received to date.

Connection to PBB Priorities and Objectives:

Liquor licenses are a regulatory action and there are no Community Priorities that directly apply.

Connection to Regional Plan:

Not applicable.

Connection to Carbon Neutrality Plan:

Not applicable.

Connection to 10-Year Housing Plan:

Not applicable.

Attachments:

Letter to Applicant

Hearing Procedures

Series 07 Description

PD Memo

Zoning Memo

Map

9.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Sam Beckett, Public Works Streets Section Director

Co-Submitter:

Scott Overton

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

Consideration and Approval of Contract: Purchase of two (2) 10-Wheel Snowplow Dump Trucks from RWC Group LLC

STAFF RECOMMENDED ACTION:

Approve the equipment purchase for two (2) 2025 International HX520 SFA Heavy Duty plow trucks from RWC Group, LLC in the amount of $782,210.11 through cooperative purchase contract #CTR069476 with the Arizona Department of Administration, State procurement office and;
Authorize the City Manager to execute the necessary documents.

Executive Summary:

Public Works - Streets Section is responsible for the timely snow plowing and added ice traction response on our City owned transportation network. Response to snow events is critical to maintain the safest travel possible on City streets. These trucks are replacements to existing Streets trucks that have far past met their sustainable life with the city. These 10-wheel trucks are also key in summer maintenance operations for dirt road repair, shoulder work, asphalt/pothole repair and general material hauling. In recent years these trucks have been critical to the success of our flood mitigation efforts and debris removal. The trucks have been recommended and approved by the Fleet Management Committee (FMC) and Budget Committee for the requested action.

Financial Impact:

Project Name: Two (2) Streets 10-wheel Plow Trucks
Cost: $782,210.11
Account Number Budgeted: 040-06-161-0614-6-4401
FY Budgeted Amount: $620,000.00. Due to inflation and updated emissions equipment the price for each truck has increased. The remaining fund capacity of $162,210.11 is in GL 040-06-162-3073-6-4443
Funding Source: Highway User Revenue Funds (HURF)

Policy Impact:

Snow operations are a substantial element of the Streets work program. The City's Snow Operations Manual maps the entire community by zone. Equipment and operators are tasked with the plowing of snow for over 700 lane miles of City owned roadways. This operation can last a few days to over a week depending on the snow event or weather conditions. In addition to plowing, we use this equipment to apply traction assistance product. In summer months this truck is used in a dump truck capacity for hauling operations. This equipment directly supports City policy to provide snow plowing for City owned roadways along with summer maintenance operations.

Previous Council Decision or Community Discussion:

Options and Alternatives to Recommended Action:

N/a

Background and History:

The Purchasing section has reviewed the competitively solicited cooperative purchase options available and confirmed that the Arizona Department of Transportation (ADOT) conducted a competitive and open procurement process through Request for Proposal Solicitation No. BPM005536 that resulted in Contract No. CTR069476 with RWC International LTD. This contract has been verified as valid and appropriate for the purchase of the specified vehicles and presents the best value to the City.

Connection to PBB Priorities and Objectives:

Provide, manage, and maintain effective infrastructure for multimodal and active transportation

Connection to Regional Plan:

N/A

Connection to Carbon Neutrality Plan:

These trucks align with the City's goal to produce less carbon emissions while still providing the highest levels of service to our community. These new trucks have advance emissions systems as well as diesel exhaust particulate filter design to significantly reduce carbon out put.

Connection to 10-Year Housing Plan:

N/A

Attachments:

Contract # 2024-175 - RWC

Exhibit A - City of Flagstaff 10 wheeler plows 2 units State Contract CTR069476

Exhibit B1 - CTR069476_Contract_Documents (1)

Exhibit B2 - CTR069476 Pricing

9.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Jana Weldon, Beautification Arts & Sciences Program Manager

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

Consideration and Approval of Construction Services Contract: Approve the Contract with Major League Painting Inc. for Painting Downtown Green Assets

STAFF RECOMMENDED ACTION:

Approve the Contract with Major League Painting, Inc in the amount of $168,181.75 to cover costs for all personnel, equipment, tools, materials, supervision, and services for the painting and finishing of specified assets within the boundaries of Route 66 and Cherry Ave, spanning from Humphrey to Verde Streets in municipal green.
Authorize the City Manager to execute all necessary documents.

Executive Summary:

Periodic maintenance requires repainting all of the Dark Green, known as Municipal Green, fixtures, equipment and fittings in the Downtown, which is bounded by Route 66 and Cherry Ave, spanning Humphrey to Verde Streets. The last repaint was conducted in FY16.

The City will provide Contractor with a spreadsheet/map identifying the location of all downtown green assets. Items include 85 bollards, 16 bike racks, 233 streetlight and pedestrian poles, 16 utility boxes mounted on poles, 354 signposts, and 29 old style trashcans.

The procurement process was a formal low bid with two bids received.

Financial Impact:

Project Name: Downtown Green
Cost: $168,181.75
Account Number Budgeted: 051-07-212-3323-6-4433
FY2024-25 Budgeted Amount: $245,000
Grant Funded: No
Funding Source: BBB Beautification

Policy Impact:

None

Previous Council Decision or Community Discussion:

Options and Alternatives to Recommended Action:

Defer maintenance to the Downtown Green assets

Background and History:

The Purchasing section posted an IFB solicitation for construction on April 10th, 2024, on the PlanetBids.com website with advertisements in the Arizona Daily Sun. There were two (2) bids received on the opening date of April 26th, 2024.
Major League Painting, Inc bid equaling - $168,181.75
Degan Construction, LLC. bid equaling - $172,111.00
After reviewing all bids received, Staff determined that Major League Painting, Inc. as the lowest responsive and responsible bidder.

Connection to PBB Priorities and Objectives:

Sustainable and Innovative Infrastructure: Provide, manage, and maintain effective infrastructure for multimodal and active transportation
Livable Community: Provide amenities and activities that support a healthy lifestyle

Connection to Regional Plan:

Policy CC.1.4. Identify, protect, and enhance gateways, gateway corridors, and gateway communities.

Policy CC.4.2. Design utilities and infrastructure to be contextual and considered as part of the overall design aesthetics.

Policy LU.1.1. Plan for and support reinvestment within the existing city centers and neighborhoods for increased employment and quality of life.

Policy LU.9.1. Reinvest in urban areas

Policy ED.7.4. Invest in attractive community gateways, main corridors, and public spaces to draw the business and workforce the region desires.

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Attachments:

Contract

9.C.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Jarrett Nelson, Public Works Project Manager

Co-Submitter:

Sam Beckett

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approve the Construction Manager at Risk (CMAR) Construction Phase Services Agreement with C and E Paving & Grading, LLC for the Street Maintenance Program 2024, 2025 & 2026 for a Guaranteed Maximum Price (GMP) of $6,376,102.20; and
Approve GMP 1 authorizing C and E Paving & Grading, LLC to execute the 2024 Street Maintenance Program; 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 travel 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 Overlay and Chip Seal Program is an effort 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 needs, and road stripe engineering. Once the identified needs are prioritized, Street's 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 City Council action, if approved, will allow Streets to deliver the Annual Street Maintenance Fall 2024 Overlay utilizing local contractor C and E Paving & Grading, LLC and improve the community transportation infrastructure.

Financial Impact:

Project Name: Road Repair and Street Safety 2024 Construction GMP 1
Cost: $6,376,102.20
Account Number Budgeted:046-06-163-3321-6-4443
FY2024-25 Budgeted Amount: $10,928,658
Grant Funded: No
Funding Source: Road Repair and Street Safety Sales Taxes

Policy Impact:

The award of the CMAR Construction Phase Services Contract to C and E Paving & Grading, LLC will authorize the City's Annual Street Maintenance Program for 2024, 2025 & 2026. Approval of GMP1 will authorize C and E Paving & Grading, LLC to execute the 2024 Street Maintenance Program. The overlay 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.

Previous Council Decision or Community Discussion:

The City of Flagstaff City Council has approved CMAR contracts in previous years for the annual street maintenance and overlay program. 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. On May 21, 2024, the City Council approved the initial phase of the CMAR process by approving the Design Phase Services Agreement with C and E Paving & Grading, LLC in the amount of $139,943.13.

Options and Alternatives to Recommended Action:

Approve the CMAR Construction Phase Services Contract to C and E Paving & Grading, LLC for the annual Street Maintenance Program for 2024, 2025 & 2026; and
Approve GMP1 authorizing C and E Paving & Grading, LLC to execute the 2024 Street Maintenance Program; or
Reject this construction phase of the CMAR process and provide direction to Staff.

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 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 develops 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 and E Paving & Grading, LLC to hold the CMAR contract for the annual Street Maintenance Program 2024, 2025, 2026. The proposed Construction Phase Services Agreement and GMP1 is a key step towards beginning this project.

Connection to PBB Priorities and Objectives:

The maintenance of the transportation system is a critical part of "high performing governance" that supports not only community members but first responders to deliver their services and is a high priority in PBB.

Connection to Regional Plan:

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

Connection to 10-Year Housing Plan:

None

Connection to Division Specific Plan:

None

Attachments:

CMAR Construction Phase Services Agreement

Exhibit B - GMP1 2024

2024 Streets Maintenance Program Overview Map

9.D.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Justin Emerick, Project Manager, Water Services

Co-Submitter:

Mac McNamara

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approve the Cooperative Purchase Contract with Carollo Engineers, Inc. for Engineering Services on the Fort Tuthill Well Pump House #2 in an amount not to exceed $499,988.00; and
Authorize the City Manager to execute the necessary documents.

Executive Summary:

The recommended Cooperative Purchase Contract with Carollo Engineers, Inc. (Carollo) will authorize Carollo to conduct Engineering Services at the Fort Tuthill Well #2 to develop and deliver a design for Pump House #2 Design Project. A pump house is generally described as a building that contains the pump that draws the water from the well and pumps the water into a City distribution system. To bring Fort Tuthill Well #2 online, a pump house is essential, and prior design identified that an expansion of Pump House #1 will allow the City to utilize both wells within the existing, but expanded, structure of Pump House #1.

Water production at the Pump House #2 is expected to nearly double with the addition of this secondary water source and the equipment upgrades that will be part of this project. This design of Pump House #2 will also resolve the production limitations of the existing pump house to maximize the production capacity. Design work will provide a solution for adding this new water source, increasing infrastructure to treat and disinfect a greater volume of water for distribution, and add significant capacity. This Cooperative Purchase Contract with Carollo will include the many design detail requirements to complete this pump house upgrade, wellhead structure, electrical and pipeline design.

The design is anticipated to be completed in the Summer of 2025.

Financial Impact:

Project Name: Fort Tuthill Well #2 Pump House Design Project
Cost: $499,988.00
Account Number Budgeted: 202-08-370-3497-0-4464
FY2024-25 Budgeted Amount: $735,736
Grant Funded: No
Funding Source: Drinking Water Fund

Policy Impact:

No Policy Impact.

Previous Council Decision or Community Discussion:

No.

Options and Alternatives to Recommended Action:

Approve the Cooperative Purchase Contract as recommended. Approval will allow Carollo to initiate the design of the Project; or
Reject the award and provide additional direction to Staff. This option would delay the start of design.

Background and History:

The Purchasing Section has reviewed the competitively solicited cooperative purchase options available and confirmed that Arizona Department of Administration (ADOA) conducted a competitive and open procurement process through Request for Qualifications Solicitation BPM004132 that resulted in Contract CTR058871 with Carollo Engineers, Inc.. This underlying agency contract has been verified as valid and appropriate for the purchase of the specified services and presents the best value to the City.

Connection to PBB Priorities and Objectives:

Sustainable and Innovative Infrastructure

Deliver outstanding services to residents through a healthy, well-maintained infrastructure system.

Connection to Regional Plan:

Goal WR.2. Manage a coordinated system of water, wastewater, and reclaimed water utility service facilities and resources at the City level and identify funding to pay for new resources.
Goal WR.4. Logically enhance and extend the City's public water, wastewater, and reclaimed water services including their treatment, distribution, and collection systems in both urbanized and newly developed areas of the City to provide an efficient delivery of services.

Connection to Carbon Neutrality Plan:

None.

Connection to 10-Year Housing Plan:

None.

Connection to Division Specific Plan:

Goal to continually expand and improve our water infrastructure to meet demand.

Attachments:

2024-167 Cooperative Purchase Carollo

Exhibit A - Fort Tuthill Pump House Scope of Work

Exhibit B1 - CTR058871 Carollo Agency Contract

Exhibit B2 - CTR058871 Supporting Documents

9.E.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Kristin Decker, Special Services Supervisor

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approval of the Cooperative Purchase Contract with PFVT Motors, LLC dba Peoria Ford for the purchase of Four 2023 Ford Explorer Police Interceptors for the Flagstaff Police Department in the amount of $211,955.44; and
Authorize the City Manager to execute the necessary documents.

Executive Summary:

PFVT Motors, LLC dba Peoria Ford holds a state contract for vehicle purchases under CTR059322. The Flagstaff Police Department is seeking to purchase Four 2023 Ford Explorer Police Interceptors from Peoria Ford in the amount of $211,955.44. The purchase is needed to replace vehicles that have met age and mileage requirements for retirement as well as vehicles that sustained accident damage. This purchase will assist the Flagstaff Police Department in maintaining a healthy fleet ready for emergency response. The acquisition of these four vehicles has been approved by the Fleet Management Committee as well as the Budget Committee.

Financial Impact:

The FY2024 Flagstaff Police Department budget was $312,031 remaining for the purchase of (4) Police Interceptor Explores and the upfitting of these vehicles in account 001-04-061-0221-2-4401.

Policy Impact:

None.

Previous Council Decision or Community Discussion:

None.

Options and Alternatives to Recommended Action:

Approve the Cooperative Purchase Contract for Four 2023 Ford Explorer Interceptors from Peoria Ford; or
Approve a purchase of fewer than Four 2023 Ford Explorer Interceptors; or
Deny the request to purchase the Four 2023 Ford Explorer Interceptors.

Background and History:

The Flagstaff Police Department's authorized patrol fleet strength is fifty vehicles. By the end of June, it is anticipated our fleet strength will be forty-five. The addition of the four vehicles in this proposal will allow the police department to approach the goal of fifty vehicles while allowing for the retirement of some vehicles over the age and mileage recommendations for our fleet.

The Purchasing section has reviewed the competitively solicited cooperative purchase options available and confirmed that the Arizona Department of Transportation (ADOT) conducted a competitive and open procurement process through Request for Proposal Solicitation No. BPM004157 that resulted in Contract No. CTR059322 with PFVT Motors, LLC dba Peoria Ford. This underlying agency contract has been verified as valid and appropriate for the purchase of the specified vehicles and presents the best value to the City. These vehicles are currently in stock and available on the lot of Peoria Ford.

Connection to PBB Priorities and Objectives:

Personnel: Attract and Retain Quality Staff
Transportation and Other Public Infrastructure: Replace aging infrastructure

Connection to Regional Plan:

Goal PF.3. Provide high-quality emergency response and public safety services including law enforcement, fire, medical and ambulance service.

Connection to Carbon Neutrality Plan:

It remains a priority for the Flagstaff Police Department to seek hybrid vehicle models for patrol. The department has had to revert to gasoline models in this instance since hybrid models are unavailable. Our current fleet does include fourteen hybrids and four electric vehicles.

Connection to 10-Year Housing Plan:

Sustaining a reliable police fleet helps minimize vehicle downtime, effectively maximizing the number of police vehicles available for use, which may result in faster response times and an elevated level of service to our citizens.

Attachments:

2024-166 Police Interceptors (4)

Exhibit A

Exhibit B1

Exhibit B2

Exhibit B3

9.F.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Stacy Saltzburg, City Clerk

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

Consideration and Approval of Council Meeting Schedule Adjustment: Reschedule the August 27, 2024 regular meeting to August 26, 2024.

STAFF RECOMMENDED ACTION:

Reschedule the Tuesday, August 27, 2024 meeting to Monday, August 26, 2024.

Executive Summary:

Tuesday, August 27, 2024 coincides with the 2024 Arizona League of Cities and Towns Annual Conference and a number of Councilmembers are planning to attend. Staff recommends rescheduling the Tuesday meeting to Monday to accommodate the League Conference and adhere to the requirements within the City Charter.

Flagstaff City Charter Article II, Section 12 - COUNCIL MEETINGS
The Council shall meet regularly at such times and at such places as shall be prescribed by its rules, but not less frequently than once each month. All meetings of the Council shall be open to the public. No change shall be made in regular meeting times or place without a published seven day notice. City Council Rules of Procedure Rule 3.01 - Regular Meetings The City Council shall hold regular meetings at 3:00 p.m. on the first and third Tuesday of January, February, March, April, May, June, September, October, November, and December, and on the first Tuesday of July and third or fourth Tuesday of August unless a majority of the Council decides to postpone or cancel such meeting. No change shall be made in regular meeting times or place without a published seven day notice.

If the day fixed for any regular meeting of the Council falls upon a day which the City observes as a legal holiday, the meeting may be canceled or held at a time and date designated by the Council.

Financial Impact:

None

Policy Impact:

None

Previous Council Decision or Community Discussion:

None

Options and Alternatives to Recommended Action:

The Council could choose to not reschedule the meeting of August 27, 2024.

Connection to PBB Priorities and Objectives:

High Performing Governance

Connection to Regional Plan:

None

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Attachments:

9.G.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Stacy Saltzburg, City Clerk

Date:

05/29/2024

Meeting Date:

06/04/2024

TITLE:

Consideration and Approval of Letter of Support: Letter of Support to advance the Northeastern Arizona Indian Water Rights Settlement Act

STAFF RECOMMENDED ACTION:

Approve the Letter of Support

Executive Summary:

Participating parties are prepared to advance the Northeastern Arizona Indian Water Rights Settlement Act (NAIWRSA). Council approval of this letter of support will allow the Mayor to send a formal letter indicating Flagstaff's support for the NAIWRSA which will further delineate Flagstaff's future water resources. Formal consideration of the Settlement Agreement itself will be taken up at a Council meeting to be scheduled in the near future.

Financial Impact:

None

Policy Impact:

None

Previous Council Decision or Community Discussion:

None

Options and Alternatives to Recommended Action:

Not approve the Letter of Support.

Connection to PBB Priorities and Objectives:

High Performing Governance

Connection to Regional Plan:

None

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Attachments:

NAWRISA Letter of Support

10.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Brandi Suda, Finance Director

Co-Submitter:

Heidi Derryberry

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

Consideration and Adoption of Resolution No. 2024-25: A resolution of the Council of the City of Flagstaff, Arizona adopting the tentative budget for Fiscal Year 2024-2025.

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-25 by title only
City Clerk reads Resolution No. 2024-25 by title only (if approved above)
Adopt Resolution No. 2024-25

Executive Summary:

Arizona Revised Statutes (Sections 42-17101, 42-17102, and 42-17105) require that each municipality adopt and publish, in a specified format, a tentative budget. The adoption of the tentative budget has the effect of establishing an amount that cannot be exceeded in the final adoption of the budget.

Furthermore, the adoption of the tentative budget sets into motion a legally mandated time sequence of actions to which the Council must adhere to adopt a final budget and to levy property taxes.

Financial Impact:

The tentative budget must be adopted to set the appropriate sequence of events in place for final budget adoption.

Policy Impact:

The Fiscal Year 2024-2025 budget is the guiding document for the financial plan of the City.

Previous Council Decision or Community Discussion:

January Council Retreat on December 14, 2023
February Budget Retreat on February 1, 2024 and February 2, 2024
March Capital Improvement Budget Retreat on March 28, 2024
Council Budget Work Session on April 25, 2024 and April 26, 2024

Options and Alternatives to Recommended Action:

The City may delay the tentative budget adoption until no later than the 3rd Monday in July. While the City would be able to continue operations through a Continuing Disclosure resolution, the City would not be able to commit to any expenditures directly related to the Fiscal Year 2024-2025 budget.

Background and History:

The budget is generally presented for tentative adoption in late May or early June to assure funding is appropriated within Key Community Priorities and Objectives at the beginning of the fiscal year.

During the summer of 2023, staff engaged the community to confirm, revise or amend the objectives that help deliver our Key Community Priorities. In November 2023, Council approved the changes to the objectives. These priorities and objectives were used to develop the FY 2024-2025 proposed budget.

At the December 2023 budget retreat, staff presented several topics including budget introduction, fiscal policies, revenue updates, priority based budgeting, budget team focus for the budget and updates on recruitment and retention, consideration of new city holidays and election update. During the February 2024 budget retreat staff presented and received further direction from Council for the FY 2024-2025 proposed budget. Topics included priority based budgeting, revenue updates, fixed cost updates, compensation and benefits, resource allocations and priorities and resource needs. In March, we held a Capital Improvement Plan Budget Retreat to review and discuss all capital improvement plans for all funds of the City. Staff presented the 5-year plans and provided information such as funding resources, how they are developed, and some highlights of current projects. During the April 2024 budget work session, staff presented the City Manager's proposed budget and received Council direction. After the April budget work session, divisions provided revised year-end estimates and carryover of funding primarily for capital projects.

The adoption of the tentative budget sets into motion a legally mandated time sequence of actions to which the Council must adhere to adopt a final budget and to levy property taxes. If this time sequence is not met as required by statute, the tentative adoption, final adoption of the budget and property tax levy actions, and related publications must be started over.

The process is prescribed through the Arizona Revised Statutes. The tentative budget must be adopted no later than the 3rd Monday in July. The schedules for Council budget and property tax levy actions are as follows:

June 4, 2024 - Tentative adoption of the budget by Council
June 18, 2024 - Proposed budget and property tax levy public hearing
June 18, 2024 - Final budget adoption (In a Special Meeting)
June 18, 2024 - First reading of property tax ordinance
July 2, 2024 - Final reading and adoption of the property tax ordinance

Connection to PBB Priorities and Objectives:

The adoption of the Annual Budget and Financial Plan provides Council direction and financial resources to support the Key Community Priorities and Objectives.

Connection to Regional Plan:

None.

Connection to Carbon Neutrality Plan:

The adoption of the Annual Budget and Financial Plan supports the Carbon Neutrality Plan by allocating financial resources the CNP goals.

Connection to 10-Year Housing Plan:

The adoption of the Annual Budget and Financial Plan supports the 10 Year Housing Plan by allocating financial resources to the plan's strategies.

Attachments:

Presentation

Resolution No. 2024-25

FY2024-25 Budget Forms

10.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Rick Tadder, Management Services Director

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-24 by title only
City Clerk reads Resolution No. 2024-24 by title only (if approved above)
Adopt Resolution No. 2024-24

Executive Summary:

The Flagstaff City Council is required to adopt a pension funding policy for its funding of the Public Safety Personnel Retirement System ("PSPRS") on or before July 1 on an annual basis, pursuant to Arizona Revised Statutes Section 38-863.01. The current policy is required to be updated and posted on the City's website.

Financial Impact:

Council will be adopting the Fiscal Year 2024-2025 budget on June 18, 2024, which includes funding for the public safety pension plans as outlined in the pension funding policy. The FY 2024-2025 budget includes pension contributions of $1,367,497 for Fire pension and $1,249,268 for Police pension.

Policy Impact:

The intent of this policy is to clearly communicate the Council's pension funding objectives, its commitment to our employees, and the sound financial management of the City, and to comply with Arizona Revised Statutes Section 38-863.01.

Previous Council Decision or Community Discussion:

On June 20, 2023, City Council adopted the PSPRS Pension Funding Policy for FY 2023-2024.

Options and Alternatives to Recommended Action:

Adopt the Public Safety Personnel Retirement System Funding Policy as presented.
Adopt the Public Safety Personnel Retirement System Funding Policy with amendments.

Background and History:

The City of Flagstaff has two separate pension plans for the City's public safety staff. While all the PSPRS plans are managed by the State, each plan within PSPRS stands alone by the City and employee group. The two plans for the City are the PSPRS-Fire and the PSPRS-Police. The City and its employees are responsible for the contributions and the City is solely responsible for liabilities of these plans.

The pension funding policy outlines several measures the City is taking to maintaining funding ratios above 100% in our PSPRS plans, including:

Make the City's annual estimated contribution based on the City budget near the beginning of each fiscal year to allow PSPRS to invest those contributions earlier for enhanced potential investment earnings. This allows the pension system to earn investment income at a higher rate than the City.
Make City contributions for public safety employees participating in the Deferred Retirement Option Plan (DROP), even though the City is not required to do so. This allows for a stable level of budgeting versus annual changes as employees on DROP increase and decrease.
Budget and pay the Normal Cost of the pension plans. This is required by the pension plan.
Current funding status for the Police plan is 97.7% and Fire plan is 102.6%. A funding status over 100% is important as it allows us to be in a better position when there are market and actuarial changes.

For the June 30, 2024 actuarial report, the Police plan fell below 100% funded. Therefore staff is contributing an additional $3.2M in fiscal year 2023-24 to bring the plan back to fully funded. This contribution is being made with existing budget capacity and will not have an impact on the fiscal year 2024-25 budget adoption. Resources will come from our pension savings set aside and savings from police operations. The set aside funds were part of the initial financing plan to help assure the plans are meeting their funded status. We will not need to use the Contingency Reserve Fund. Staff will be meeting with Pubilic Safety Personnel Safety Retirement staff do discuss the City's annual progress since our pension financing in July 2020. We hope to design an improved plan to maintain the 100% funded status of our plans.

Connection to PBB Priorities and Objectives:

High Performing Governance: Maintain the organization's fiscal stability through strong financial policies and best practices.

Connection to Regional Plan:

Goal PF.3. Provide high-quality emergency response and public safety services including law enforcement, fire, medical, and ambulance transport service.

Connection to Carbon Neutrality Plan:

None.

Connection to 10-Year Housing Plan:

None

Attachments:

Res. 2024-24

PSPRS Pension Funding Policy

Contingency Reserve Fund Policy

10.C.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Rick Tadder, Management Services Director

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-23 by title only
City Clerk reads Resolution No. 2024-23 by title only (if approved above)
Adopt Resolution No. 2024-23

Executive Summary:

Staff is requesting Council adoption of this resolution to formally designate a Chief Fiscal Officer, per Arizona Revised Statutes, Section 41-1279.07(E). The City is required to annually designate a Chief Fiscal Officer for the City for expenditure limitation reporting.

Financial Impact:

There is no fiscal impact related to adopting this resolution.

Policy Impact:

There is no policy impact related to adopting this resolution. It is intended to follow state statute requirements.

Previous Council Decision or Community Discussion:

The current designation for Fiscal Year 2023-24 was adopted by Council on July 3, 2023.

Options and Alternatives to Recommended Action:

Approve the Resolution as submitted.
Amend the Resolution and designate a different city staff member as the Chief Fiscal Officer

Background and History:

Per Arizona Revised Statutes, Section 41-1279.07(E), the City is required to designate a Chief Fiscal Officer annually for expenditure limitation reporting, as follows: "The governing body of each political subdivision shall provide to the auditor general by July 31 each year the name of the chief fiscal officer designated by the governing body of the political subdivision to officially submit the current fiscal year's expenditure limitation report on behalf of the governing body. The governing body of the political subdivision shall notify the auditor general of any changes of individuals designated to file the required reports. The designated chief fiscal officer shall certify to the accuracy of the annual expenditure limitation report."

The Flagstaff City Charter Article IV, Section 3 provides for the appointment of a City Treasurer with approval of the Council. The City Treasurer "shall receive and have custody of all the money of the City" and manage it in compliance with applicable laws and ordinances. The City Treasurer's responsibilities encompass those duties required of a Chief Fiscal Officer, per the law stated above. On September 15, 2015, Rick Tadder was appointed the City Treasurer by Resolution No. 2015-32. Therefore, designating Rick Tadder as the Chief Fiscal Officer is appropriate.

Connection to PBB Priorities and Objectives:

None

Connection to Regional Plan:

None

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Attachments:

Res. No. 2024-23

10.D.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Patrick Brown, Purchasing Director

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-26 by title only
City Clerk reads Resolution No. 2024-26 by title only (if approved above)
Adopt Resolution No. 2024-26

Executive Summary:

This Resolution is to amend the City's Procurement Code Manual to revise Article 4 Definitions and add the new Article 32 for Sustainable Procurement. Staff has developed new Article 32 and revised Article 4 with associated definitions that will provide a sustainable procurement process when soliciting for Financial Services.

Financial Impact:

N/A.

Policy Impact:

Per City Code, Chapter 1, Section 20-001-0004, a Resolution is required to adopt changes to the Procurement Code Manual.

Previous Council Decision or Community Discussion:

On June 27, 2023 during a Council Work Session, city staff was asked by council to explore and develop procurement policy code revisions for the Procurement Code Manual.
On March 28, 2024 at a City Council Work Session, city staff presented amendments to the Procurement Code Manual with options to consider under the new Sustainable Procurement article related to Financial Services.

Options and Alternatives to Recommended Action:

Adopt the changes proposed in the Resolution
Provide amendments and adopt the Resolution
Do not adopt the resolution and provide direction to staff

Background and History:

The City has a formal and comprehensive Procurement Code Manual which was originally adopted by City Council under Resolution No. 2013-19 on July 16, 2013. Any and all amendments are required to be adopted by Resolution per City Code, Chapter 1, Section 20-001-0004. The Procurement Code Manual was amended June 2015, May 2018, April 2019 and July 2023.

The purpose for the Procurement Code Manual is to provide fundamental principles, practices and guidelines for how the City Procurement process works. The objectives of the Procurement Code Manual are to outline various procedures in order to provide and preserve a high standard of integrity and transparency with the City's procurement process and demonstrate leadership in the stewardship of taxpayer dollars involving the procurement of materials, services and construction. The Procurement Code Manual is in accordance with the Flagstaff City Charter and applicable law.

The City Procurement Code Manual currently consists of 31 Articles. Staff is prepared to discuss amendment to Articles 4 and adding new Article 32 for adoption. Staff will continue to look at future revisions to other Articles within the Procurement Code Manual.

Connection to PBB Priorities and Objectives:

None

Connection to Regional Plan:

None

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

N/A

Attachments:

Res. 2024-26

10.E.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Heidi Hansen, Economic Vitality Director

Co-Submitter:

Rebecca Sayers

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE:

STAFF RECOMMENDED ACTION:

Executive Summary:

The Parks and Recreation, Tourism, Open Spaces, and Beautification and Public Arts commission's ordinances were established in 1988 and the proposed amendments to Chapters 2-03, 2-13, 2-14, and 2-20 update the commission duties and objectives, which are outdated and no longer coincide with industry need. The proposed amendments to Chapter 3-06, clarify that the Open Spaces Commission will be involved in making recommendations regarding allocation of the parks and recreation portion of the hospitality industry tax revenues and update economic development activities.

Financial Impact:

No financial impact

Policy Impact:

Updating these chapters of the City Code will change the definition of "parks and recreation" in sections of the city code referring to the parks and recreation portion of the hospitality industry tax revenues (also knows as Bed, Board, and Booze or BBB tax) to include open spaces, and will clarify that the Open Spaces Commission will be involved in making recommendations regarding allocation of the parks and recreation portion of the tax. Updates to the Tourism Commission portion of the city code will change language to "visitor" instead of "tourists," as well as establish marketing plan objectives and meetings appropriate to their need, and Beautification/Arts/Sciences will update procurement thresholds to recently approved changes. The Economic Development portion of the hospitality industry tax revenues chapter will update language to match current practices and business needs.

Previous Council Decision or Community Discussion:

Staff presented the recommended code changes to City Council on April 23, 2024, and Council direction was to move forward with the recommendations.

Options and Alternatives to Recommended Action:

Not approve the recommended code changes.

Connection to PBB Priorities and Objectives:

Priority Based Budget Key Community Priorities and Objectives
Robust and Resilient Economy: Support and strengthen a robust, diverse, and sustainable economy; maintain and enhance an equitable and effective business, retention, and expansion program throughout the community; Embrace and invest in responsible tourism opportunities to promote economic development.
Livable Community: Provide amenities and activities that support a healthy lifestyle.
Environmental Stewardship: Promote, protect, and enhance a healthy, sustainable environment and its natural resources.

Connection to Regional Plan:

Regional Plan Goal OS.1. The region has a system of open lands, such as undeveloped natural areas, wildlife corridors and habitat areas, trails, access to public lands, and green ways to support the natural environment that sustains our quality of life, cultural heritage, and ecosystem health. Goal CC.5. Support and promote art, science, and education resources for all to experience. Goal ED. 6.Tourism will continue to provide a year-round revenue source for the community, while expanding specialized tourist resources and activities. Goal ED.7. Continue to promote and enhance Flagstaff 's unique sense of place as an economic development driver. Goal REC.1. Maintain and grow the region's healthy system of convenient and accessible parks, recreation facilities, and trails.

Connection to Carbon Neutrality Plan:

Carbon Neutrality Plan IR-2: Ensure equity, accessibility, and inclusion across all City of Flagstaff Parks and Recreation facilities, helping all members of the Flagstaff community to meet their health and wellness needs. DD-3: Encourage Flagstaff residents and visitors to walk, bike, roll and take the bus.

Connection to 10-Year Housing Plan:

None.

Attachments:

Res. 2024-22

2024 BBB Related Amendments

Ord. 2024-16

Presentation

11.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Erin Young, Water Resources Manager

Co-Submitter:

Rick Tadder

Co-Submitter:

Shannon Jones

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE

Discussion and Direction following Council's Revisions to Water, Wastewater, and Reclaimed Water Model Assumptions and Resulting Rates

STAFF RECOMMENDED ACTION:

The desired outcome is for the Council to confirm their recommended rate model revisions to develop the final rates package for Council consideration at the June 18 and July 2 public hearings.

Executive Summary:

City staff and the City's Consultant, Stantec, have been discussing the water and sewer 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 present the results to the water, wastewater, and reclaimed water rates from adjusting the model assumptions as directed by Council at their May 21st meeting. The desired outcome is for the Council to confirm their recommended revisions to develop the final rates package for Council consideration at the June 18 and July 2 public hearings.

Information:

The previous rates proposal provided to Council on April 16th incorporated the following assumptions: a 100% annual execution rate of the Capital Improvement Plan (CIP), a debt limit of 30% on water and 21% on wastewater, a 1% growth rate, and a cost escalation adjustment of 3.5% for the majority of the operating expenses (about 75% of the total expenses including salaries and benefits), 6% for chemical, utilities, and equipment maintenance (about 25% of the total expenses), and 4% on the capital program. The resulting rate increases were as follows:

15% each year for 5 years for the water fund
25%, 25%, 15%, 10%, 5% for the wastewater fund
Reclaimed rates remain based on the percentage of the water rates
Capacity Fees and Miscellaneous Fees changes vary based on cost of services

Staff and Stantec modified the proposed rate changes following Council direction from the May 21st meeting. At this meeting, Council directed staff to retain the growth rate and cost escalation adjustments but to reduce the capital program and increase combined debt. Staff and Stantec are proposing an 86% annual execution rate of the CIP for the water and wastewater funds with a maximum combined (water, wastewater, reclaimed water and stormwater) limit on borrowing of 38%. The new proposed adjustments to rates are:

10% each year for 5 years for the water fund
20%, 20%, 10%, 5%, 5% for the wastewater fund
Reclaimed rates remain based on the percentage of the water rates
Capacity Fees and Miscellaneous Fees are the same as presented previously

Attachments:

Presentation

12.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Stacy Saltzburg, City Clerk

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE

Future Agenda Item Request (F.A.I.R.): A request by Councilmember McCarthy to place on a future agenda a discussion regarding towing and car storage charges and the use of cash versus credit cards.

STAFF RECOMMENDED ACTION:

Council Direction

Executive Summary:

Rule 4.01, Procedures for Preparation of Council Agendas, of the City of Flagstaff City Council Rules of Procedure outlines the process for bringing items forward to a future agenda. Councilmember Matthews has requested this item be placed on an agenda under Future Agenda Item Requests (F.A.I.R.) to determine if there are two other members of Council interested in placing it on a future agenda.

Information:

None

Attachments:

12.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Stacy Saltzburg, City Clerk

Date:

05/28/2024

Meeting Date:

06/04/2024

TITLE

Future Agenda Item Request (F.A.I.R.): A request by Councilmember Matthews to place on a future agenda a discussion about expanding the Employer Assisted Housing program and how to expand the program to local employers for workforce housing using incentives.

STAFF RECOMMENDED ACTION:

Council Direction

Executive Summary:

Information:

None

Attachments: