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

REGULAR COUNCIL MEETING
TUESDAY
JUNE 18, 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: Waste and Recycling Workers Week

Proclamation: Juneteenth

Recognition of Police Chief Dan Musselman

COUNCIL LIAISON REPORTS

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: Jacob Theodore Paullk, "Cinders Liquors LLC," 5620 N US HWY 89, Series 09 (Liquor Store), Sampling Privileges

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.

Consideration and Action on Liquor License Application: Jamie William Thousand, "ROUX 66," 2620 N Steves Blvd, Series 12 (Restaurant), New License

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: Cooperative Purchase Contract with Flock Group, Inc. dba Flock Safety in the amount of $124,100 plus fees and taxes, for the purchase of Flock Safety cameras and software for the Flagstaff Police Department.

STAFF RECOMMENDED ACTION:

Cooperative Purchase Contract with Flock Group, Inc. dba Flock Safety in the amount of $124,100 plus fees and taxes, for the purchase of Flock Safety cameras and software for the Flagstaff Police Department; and
Authorize the City Manager to execute the necessary documents.

Consideration and Approval of Contract: Approve the Contract for the Purchase of Materials/Services with Southwest Tank and Steel, Inc., in an amount not to exceed $353,518 for water storage tank maintenance and painting.

STAFF RECOMMENDED ACTION:

Approve the Contract for the Purchase of Materials/Services with Southwest Tank and Steel, Inc., in an amount not to exceed $353,518 for water storage tank maintenance and painting; and
Authorize the City Manager to execute all necessary documents.

Consideration and Approval of Contract: 2024 Renewal of the Master Agreement for Software Maintenance with Hexagon for software utilized by the City of Flagstaff Police Department in the amount of $288,790.92, plus applicable taxes.

STAFF RECOMMENDED ACTION:

Approve the 2024 Renewal of the Master Agreement for Software Maintenance with Hexagon in the amount of $288,790.92, plus applicable taxes; and
Authorize the City Manager to execute all necessary documents.

Consideration and Approval of Contract: Approve Two City-Wide Custodial Services Contracts; CD Phoenix, LLC dba DetailXPerts and Pinnacle Janitorial, Inc. dba Building Services

STAFF RECOMMENDED ACTION:

Approve Two City-Wide Custodial Services Contracts; CD Phoenix, LLC dba DetailXPerts (10 Facilities) and Pinnacle Janitorial, Inc. dba Building Services (12 Facilities); and
Authorize the City Manager to execute the necessary documents.

Consideration and Approval of Grant Agreement: Safe Streets and Roads for All Grant Agreement between the City of Flagstaff and the U.S. Department of Transportation Federal Highway Administration for the Butler Avenue Complete Streets Conversion project.

STAFF RECOMMENDED ACTION:

Approve the Grant Agreement with the Federal Highway Administration in the amount of $12,014,989 of which $9,611,991 is Federal Highway Administration share, and $2,402,998 is City of Flagstaff share as part of a grant match; and
Authorize the City Manager to execute all necessary documents.

Consideration and Approval of Ratification of Contract: Ratify Expenditure and Approval of Cooperative Purchase Contract with HyeTech Network & Security Solutions, LLC for the IT Section to purchase network and security hardware and services for the fiscal year budgeted amount for the term of the Agency Contract.

STAFF RECOMMENDED ACTION:

Ratify an expenditure of $156,051.25 for network and security hardware and services from HyeTech Network & Security Solutions, LLC; and
Approve the Cooperative Purchase Contract with HyeTech Network & Security Solutions, LLC for the IT Section to purchase network and security hardware and services for the fiscal year budgeted amount for the term of the Agency Contract; and
Authorize the City Manager to execute the necessary documents.

Consideration and Approval of Memorandum of Agreement for Climate Pollution Reduction Grant Application: A Memorandum of Agreement by and between the City of Flagstaff, Coconino County, and the City of Sedona is required for grant submission to the Environmental Protection Agency Climate Pollution Reduction Grant Program.

STAFF RECOMMENDED ACTION:

Approve the Memorandum of Agreement between the City of Flagstaff, Coconino County, and the City of Sedona and authorize the City of Flagstaff City Manager to execute the Agreement and any other Agreements related to the Climate Pollution Reduction Grant.

Consideration and Approval of Contract: Amended and Restated Contract (Third Amendment) with Flagstaff Arts Council (Creative Flagstaff) for Lead Arts Agency Services; Arts, Science and Culture grant administration; ARPA grant administration; activation of the Coconino Center for the Arts; and ArtX festival.

STAFF RECOMMENDED ACTION:

Approve Amended and Restated Contract with Flagstaff Arts Council in an amount not to exceed $875,626.00

ROUTINE ITEMS

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:

Adopt Resolution No. 2024-22
Read Ordinance No. 2024-16 by title only for the final time
City Clerk reads Ordinance No. 2024-16 by title only (if approved above)
Adopt Ordinance No. 2024-16

Consideration and Approval of Ratification of Contract: Ratify the Cooperative Purchase Contract with Motorola Solutions, Inc. in an amount not to exceed $183,072.68 for radio equipment and accessories for the Flagstaff Police Department.

STAFF RECOMMENDED ACTION:

Ratify the Cooperative Purchase Contract with Motorola Solutions, Inc. in an amount not to exceed $183,072.68 for radio equipment and accessories for the Flagstaff Police Department; and
Authorize the City Manager to execute all necessary documents.

Consideration and Approval of Preliminary Plat: TLC PC Land Investors. LLC requests Preliminary Plat approval for Ghost Tree at Pine Canyon located at 3201 South Clubhouse Circle, a 12-unit single-family home subdivision on 7.87 acres in the Single-Family Residential (R1) Zone.

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 (7-0 vote in favor on May 8, 2024). The Preliminary Plat is granted a reduction of 1.5% from the preservation requirement of 70% for the 17%-24.99% slope resources based on the request provided.

10.

PUBLIC HEARING ITEMS

Open the Public Hearing
Presentations (Staff and/or Applicant)
Council Questions
Public Comment
Close the Public Hearing
Council Deliberation and Action

Consideration and Adoption of Resolution No. 2024-30 and Ordinance No. 2024-19: A Resolution of the Flagstaff City Council declaring as a public record that certain document filed with the City Clerk and entitled "Water Services Rates Code Changes" and An Ordinance of the City Council of the City of Flagstaff, amending the Flagstaff City Code Title 3, Business Regulations, Section 3-10-001-0008 License Fees and Title 7, Health and Sanitation, Chapter 7-02 Wastewater Regulations, and Chapter 7-03 Water Regulations, by adopting by reference that certain document entitled "Water Services Rates Code Changes"; providing for penalties, repeal of conflicting ordinances, severability, and establishing an effective date

STAFF RECOMMENDED ACTION:

At the June 18 Council Meeting:
1) Hold Public Hearing
2) Read Resolution No. 2024-30 by title only
3) Read Ordinance No. 2024-19 by title only for the first time
4) City Clerk reads Ordinance No. 2024-19 by title only (if approved above)
At the July 2 Council Meeting:
5) Adopt Resolution No. 2024-30
6) Read Ordinance No. 2024-19 by title only for the final time
7) City Clerk reads Ordinance No. 2024-19 by title only (if approved above)
8) Adopt Ordinance No. 2024-19

Public Hearing: Fiscal Year 2024-2025 Budget and Property Tax Levy

STAFF RECOMMENDED ACTION:

Hold the public hearing to receive citizen input
Convene Special Meeting

11.

SPECIAL MEETING

Consideration and Adoption of Resolution No. 2024-27: A resolution of the Flagstaff City Council, adopting the Budget for the City of Flagstaff for Fiscal Year 2024-2025.

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-27 by title only
City Clerk reads Resolution No. 2024-27 by title only (if approved above)
Adopt Resolution No.2024-27
Reconvene Regular Meeting

12.

REGULAR AGENDA

Consideration and Adoption of Ordinance No. 2024-17: An ordinance levying upon the assessed valuation of the property within the City of Flagstaff, Arizona, subject to taxation a certain sum upon each one hundred dollars ($100.00) of valuation sufficient to raise the amount estimated to be required in the annual budget, less the amount estimated to be received from other sources of revenue; providing funds for various bond redemptions, for the purpose of paying interest upon bonded indebtedness and providing funds for general municipal expenses, all for the Fiscal Year ending the 30th day of June 2025. (Primary and secondary property tax levies for FY 2024-2025)

STAFF RECOMMENDED ACTION:

At the June 18, 2024 Council Meeting:
1) Read Ordinance No. 2024-17 by title only for the first time
2) City Clerk reads Ordinance No. 2024-17 by title only (if approved above)
At the July 2, 2024 Council Meeting:
3) Read Ordinance No. 2024-17 by title only for the final time
4) City Clerk reads Ordinance No. 2024-17 by title only (if approved above)
5) Adopt Ordinance No. 2024-17

Consideration and Approval of Ground Lease Agreement between the City of Flagstaff and Housing Solutions of Northern Arizona, Inc. for the development of affordable rental housing.

STAFF RECOMMENDED ACTION:

Approve the ground lease with Housing Solutions of Northern Arizona, Inc.
Authorize City Manager to execute the ground lease

Consideration and Adoption of Ordinance No. 2024-18: An ordinance of the City Council of the City of Flagstaff, authorizing the exchange of real property of substantially equal value with property owners, Gary G. and Mary Eileen Hundelt; providing for severability, authority for clerical corrections, and establishing an effective date; and

Consideration and Approval of Purchase Agreement with Gary G. and Mary Eileen Hundelt.

STAFF RECOMMENDED ACTION:

At the June 18, 2024 Council Meeting:
1) Read Ordinance No. 2024-18 by title only for the first time
2) City Clerk reads Ordinance No.2024-18 by title only (if approved above)
At the July 2, 2024 Council Meeting:
3) Read Ordinance No. 2024-18 by title only for the final time
4) City Clerk reads Ordinance No.2024-18 by title only (if approved above)
5) Adopt Ordinance No. 2024-18
6) Approve the Purchase Agreement and authorize the City Manager to execute the necessary documents.

Consideration and Adoption of Resolution No. 2024-32 and Ordinance No. 2024-20: A resolution of the Flagstaff City Council declaring as a public record that certain document filed with the City Clerk and entitled "2024 Revisions to Floodplain Regulations" and an ordinance of the City Council of the City of Flagstaff, amending the Flagstaff City Code, Title 12 Floodplains, Chapter 12-01 Flood Plain Regulations, by adopting by reference that certain document entitled "2024 Revisions to Floodplain Regulations"; providing for penalties, repeal of conflicting ordinances, severability, and establishing an effective date

STAFF RECOMMENDED ACTION:

At the June 18, 2024 Council Meeting:
1) Read Resolution No. 2024-32 by title only
2) Read Ordinance No. 2024-20 by title only for the first time
3) City Clerk reads Ordinance No. 2024-20 by title only (if approved above)
At the July 2, 2024 Council Meeting:
4) Adopt Resolution No. 2024-32
5) Read Ordinance No. 2024-20 by title only for the final time
6) City Clerk reads Ordinance No. 2024-20 by title only for the final time
7) Adopt Ordinance No. 2024-20

Consideration and Adoption of Resolution No. 2024-31: A resolution of the Flagstaff City Council, authorizing an amendment to a development agreement for Woodshire on Butler Condominiums. The Development Agreement is between Woodshire on Butler, LLC, and the City of Flagstaff related to the development of approximately 4.06 acres of real property generally located at 2989 E. Butler Avenue (APN 106-04-007B) and 3001 E. Butler Avenue (APN 106-04-006C). (Woodshire on Butler Development Agreement).

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-31 by title only
City Clerk reads Resolution No. 2024-31 by title only (if approved above)
Adopt Resolution No. 2024-31

Consideration and Adoption of Resolution No. 2024-28: A resolution of the Flagstaff City Council, ordering and calling a Special Election of the City for November 5, 2024, in conjunction with the City's General Election, to submit two questions to the qualified electors of Flagstaff with respect to the possible continuation of the City Lodging, Restaurant and Lounge (BBB) tax; and the possible increase and continuation of a local Transaction Privilege Tax (Sales Tax) for the purposes of public transit.

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-28 by title only
City Clerk reads Resolution No. 2024-28 by title only (if approved above)
Adopt Resolution No. 2024-28

Consideration and Adoption of Resolution No. 2024-29: A resolution of the Flagstaff City Council, approving an Intergovernmental Agreement between the City of Flagstaff and Coconino County for election services for the November 5, 2024 General Election

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-29 by title only
City Clerk reads Resolution No. 2024-29 by title only (if approved above)
Adopt Resolution No. 2024-29

13.

DISCUSSION ITEMS

Carbon Neutrality Plan Biannual Progress Report

STAFF RECOMMENDED ACTION:

This item is for discussion only.

14.

OPEN CALL TO THE PUBLIC

15.

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

16.

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:

Stacy Saltzburg, City Clerk

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

Consideration and Action on Liquor License Application: Jacob Theodore Paullk, "Cinders Liquors LLC," 5620 N US HWY 89, Series 09 (Liquor Store), Sampling Privileges

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. Series 09S license is an additional license added on to an existing liquor license. Jacob Paullk, the agent for Cinders Liquors LLC, has submitted a liquor license application for the addition of sampling privileges to the existing license at the location. To view surrounding liquor licenses, please visit the Active Liquor Licenses Map.

Because the application is for an addition to an existing license, consideration may be given to both the applicant's personal qualifications and the location.

The application was properly posted on May 29, 2024 and the Police and Community Development divisions have reviewed the application and provided their respective reports. No written protests have been received to date.

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:

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.

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 09 Description

PD Memo

Code Memo

Map

7.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Stacy Saltzburg, City Clerk

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

Consideration and Action on Liquor License Application: Jamie William Thousand, "ROUX 66," 2620 N Steves Blvd, Series 12 (Restaurant), New License

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 12 license allows the holder of a restaurant license to sell and serve spirituous liquor solely for consumption on the premises of an establishment which derives at least forty percent (40%) of its gross revenue from the sale of food. ROUX 66 is an existing business in Flagstaff. If approved, it will be one of 92 series 12 licenses in Flagstaff. Series 12 licenses are non-quota licenses. To view surrounding liquor licenses, please visit the Active Liquor Licenses Map.

Because the application is for a new license, consideration may be given to both the location and the applicant's personal qualifications.

The application was properly posted on May 29, 2024 and the Police and Community Development divisions have reviewed the application and provided their respective reports. No written protests have been received to date.

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:

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.

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 12 Description

PD Memo

CD Memo

Map

8.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Collin Seay, Deputy Police Chief

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Cooperative Purchase Contract with Flock Group, Inc. dba Flock Safety in the amount of $124,100 plus fees and taxes, for the purchase of Flock Safety cameras and software for the Flagstaff Police Department; and
Authorize the City Manager to execute the necessary documents.

Executive Summary:

The Flagstaff Police Department is interested in a public safety camera system including Automated License Plate Reader (ALPR) cameras in Flagstaff. The Northern Arizona University Police Department just implemented their Flock camera program within the month, and we will be joining multiple agencies in Arizona and the nation using Flock Safety for ALPR technology. This program allows for the installation of thirty-two (32) ALPR cameras at the entrances and exits to Flagstaff and at major intersections within the community. Cameras will be mounted on existing city owned infrastructure, on designated city owned areas, or on approved infrastructure with the permission of the Arizona Department of Transportation (ADOT). The cameras are solar-powered and designed to function during all seasons. The installation and maintenance of each camera is included with the annual cost of the camera.

ALPR cameras take still images of motor vehicles and their license plates as they pass through designated locations in Flagstaff, and these images are maintained in their cloud storage. The provided operating system from Flock Safety can be queried by a law enforcement officer only for a legitimate law enforcement purpose. All vehicle data is entered and archived into the cloud-based public safety platform (called FlockOS). Many crimes that occur in Flagstaff typically involve a vehicle in the crime, and this tool will allow the police department to gather leads and solve crimes which were once considered unsolvable. Examples would be the following

Hit and Run investigation where the victim only gets a vehicle description of the suspect
Human trafficking case where a vehicle is known to law enforcement
Bank robbery where the driver leaves the scene in a specific make and model of vehicle
Vehicles used to traffic deadly fentanyl through our community
Drive-by shootings, active shooter, and other weapon related calls where the suspect leaves the scene in a vehicle
Amber alert scenarios where endangered juveniles enter or exit the city
Silver alert scenarios where endangered subjects are missing from their loved ones
Catalytic converter thefts where a description of a suspect vehicle is obtained
Stolen vehicles
Impaired-driver alerts that get reported to the communication center.

The FlockOS platform will allow officers to query the system for a make and model of vehicle involved in a crime like those listed above and get a photo bank of license plates and pictures of similar vehicles that could have been involved in the crime. The FlockOS platform can also be configured to immediately notify the communications center and officers in the field if a stolen vehicle, amber alert, silver alert, vehicle wanted in a homicide or major crime, or another specific vehicle needed by law enforcement has entered or exited the City of Flagstaff.

We truly believe the community will immediately be a safer place for all of us because it will prevent or reduce the likelihood of some of the crimes listed above because it will increase our ability to locate offenders. We plan to conduct a media campaign notifying our community that this technology is available with the intention of deterring the criminal activity from occurring.

Our Flock Safety contract will also include Raven shot-spotting technology in the ¼ square mile of the downtown area (North of Butler, South of Cherry and West of WC Riles and East of City Hall). This Raven system will notify the communication center if there are gunshots in the downtown area and be able to give investigators the exact time and location of the gunfire. The Flock Safety cameras will work in conjunction with the Raven technology to obtain license plates of vehicle leaving the scene of a shooting in our downtown area.

Financial Impact:

Project Name: Flock Safety Cameras for the Flagstaff Police Department
Cost: $124,100.00
Account Number Budgeted: 001-04-061-0222-2-4343
FY Budgeted Amount: $130,000.00
Grant Funded: No
Funding Source: FPD Budget FY2025

Policy Impact:

Aligns with Police Department mission of protecting and preserving life.

Previous Council Decision or Community Discussion:

There has not been a previous council decision on this product as it is new technology to the City. The City Manager and Budget Team approved this project in the FY2025 Police Department budget.

Options and Alternatives to Recommended Action:

Approve the Cooperative Purchase Contract with Flock Group, Inc. dba Flock Safety in the amount of $124,100 plus fees and taxes; or
Direct staff to conduct a procurement. Staff does not recommend this option as the purchase through the Cooperative Purchase Contract is valid.

Background and History:

The Flagstaff Police Department patrol division has struggled with staffing for several decades, and this technology allows our department to obtain leads on cases which were previously thought to be unsolvable because they weren't detected by law enforcement members. The Flock Safety camera system will serve as a force multiplier for our department, and we anticipate developing leads on cases that were previously very difficult to solve. In 2023 and 2024 alone, we have identified numerous hit-and-run, shooting cases, homicide cases, and sexual assault cases where the Flock Safety cameras would have given our investigators leads to help solve these crimes.

City of Flagstaff Procurement department completed a review of an agency contract through the City of Tempe. Tempe conducted a competitive open procurement through Request For Proposals (RFP) # 21-119 that resulted in contract # T21-119-01 with the Contractor.

Connection to PBB Priorities and Objectives:

Safe and Healthy Community, Provide public safety services with resources, staff, and training responsive to the community's needs.

Connection to Regional Plan:

There is no impact to the Regional Plan.

Connection to Carbon Neutrality Plan:

There is no impact to Carbon Neutrality Plan.

Connection to 10-Year Housing Plan:

There is no impact on 10-Year Housing Plan.

Connection to Division Specific Plan:

The main tenants of the mission statement of the Flagstaff Police Department is to protect and preserve life, property and public order by providing exemplary service. This technology will better allow our officers to achieve this mission by not only having the appropriate technology to solve crimes involving vehicles but reduce the occurrence of crime and the fear of crime in our community. We strive to make Flagstaff the safest city in Arizona to live in and embracing this technology is one piece toward that vision.

Attachments:

2024-163 - Flock Group dba Flock Safety

Exhibit A - Flagstaff Quote

Exhibit B

Exhibit B2 - Offer and Acceptance

Exhibit B3 - T21-119-01 Contract Renewal 23-24

Exhibit B4 - CM to Allow for Flex Cameras

Exhibit B5 - CM _ Price Clarification Executed

8.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Brian Huntzinger, Water Production Manager

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approve the Contract for the Purchase of Materials/Services with Southwest Tank and Steel, Inc., in an amount not to exceed $353,518 for water storage tank maintenance and painting; and
Authorize the City Manager to execute all necessary documents.

Executive Summary:

Flagstaff Water Services relies on storage tanks for both potable and reclaim water distribution systems to provide pressure and volume. Steel tanks are typically found above ground where they are subject to the elements and require periodic maintenance or painting. Water Production identified three of its potable water storage tanks in service requiring attention or maintenance for this solicitation: Railroad Springs #1, Kinlani and Woody Mountain Booster Station Forebay tanks. In addition, the Buffalo Park reclaim water storage tank was added to the project ahead of a Beautification effort to add a mural to the tank. This type of project requires specific skills from professional painting contractors.

Financial Impact:

Flagstaff Water Services budgeted for this Tank Maintenance Project in fiscal year 2024 in account 202-08-370-3535-0-4465 and Beautification budgeted for the base paint prior to the mural application in fiscal year 2025 in account 051-07-212-3419-5-4433.

Policy Impact:

None.

Previous Council Decision or Community Discussion:

Prior to this solicitation the most recent tank maintenance project involving a potable water storage tank was the Lake Mary Water Treatment Plant Backwash Tower approved by council in June of 2022.

Options and Alternatives to Recommended Action:

Approve the Contract for Materials/Services with Southwest Tank and Steel, Inc. in the amount of $353,518; or
Do not approve the Contract for Materials/Services with Southwest Tank and Steel, Inc. and direct staff to conduct another solicitation for the painting project(s). Staff does not recommend this option as the current solicitation was very successful; or
Reject any maintenance and painting of potable and reclaim water storage tanks and direct staff to decommission the associated tanks entirely and replace them with new tanks. Staff does not recommend this option as there will be significant additional costs.

Background and History:

Flagstaff Water Services relies on storage tanks within both potable and reclaim water systems. These tanks are used to provide both pressure and supply/volume to the respective distribution systems. These tanks are typically composed of concrete or steel and can be either subterranean (buried) or above ground and can range in volume from tens of thousands of gallons to tens of millions (20,000 to 12,000,000 gallons). The potable water system and its sources include about 24 of these water storage tanks. In most cases, above ground storage tanks are steel and require occasional or routine maintenance or painting due to their exposure to the elements. Without proper maintenance steel surfaces can become exposed which leads to rusting, loss of metal and potential failure of the tank integrity leading to much more costly repairs or replacements. Tank maintenance is the best practice at ensuring maximum asset lifespan and water quality within water storage tanks.

The potable water tanks included in this Contract are Railroad Springs #1 (1 million gallons in volume (1MG)), constructed in 2002; Kinlani (156KG), constructed in 1990; and the Woody Mountain Booster Station Forebay (60KG), constructed in 1975. Additionally, the Buffalo Park tank (2MG), built in 1959 and now part of the reclaim water distribution system was included in the solicitation ahead of a mural project funded by BBB funds in order to provide an ideal substrate, appearance and lifespan of a mural to come and also provide maintenance of the tank.

On April 12 Purchasing staff posted an Invitation for Bids solicitation on the Planet Bids website and also advertised the solicitation in the Arizona Daily Sun newspaper. On May 10 the City received eight (8) bids from bidders and after review Southwest Tank and Steel, Inc. was deemed the lowest responsive and responsible bidder. The bids received from the City were as follows:

Southwest Tank and Steel $353,518.00
Viking Painting, LLC $424,300.00
Riley Industrial Services, Inc. $433,724.00
Revolution Industrial $553,070.67
PPS Coatings $608,200.00
TMI Coatings $655,500.00
MMI Tank & Industrial Services $677,537.00
Utility Service Co, Inc. $957,181.58

Connection to PBB Priorities and Objectives:

Safe & Healthy Community
Sustainable and Innovative Infrastructure: Deliver outstanding services to residents through a health, well-maintained infrastructure system.

Connection to Regional Plan:

Policy WR.2.2: Maintain and develop facilities to provide reliable, safe, and cost effective water, wastewater, and reclaimed water services.

Connection to Carbon Neutrality Plan:

CR-1: Strengthen existing community systems to create resilience to both short-term shocks and long-term change.
WS-1: Improve water infrastructure and expand water reuse.

Connection to 10-Year Housing Plan:

None.

Connection to Division Specific Plan:

Objective 5: Accelerate Infrastructure Mainenance and Replacement
Objective 6: Ensure Adequate Water Resources and Plan for Climate Change
Objective 7: Maintain Excellent Water Quality

Attachments:

Contract for Materials/Services

8.C.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Allison Hughes, Support Services Manager

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approve the 2024 Renewal of the Master Agreement for Software Maintenance with Hexagon in the amount of $288,790.92, plus applicable taxes; and
Authorize the City Manager to execute all necessary documents.

Executive Summary:

Hexagon software manages all the Computer Aided Dispatch (CAD) and Records Management System (RMS) for public safety. Staff is requesting approval of the 2024 Renewal of the Master Agreement for Software Maintenance ("Software Agreement") with Hexagon. The Software Agreement is for the Flagstaff Police Department Records Management Software. This agreement allows the Hexagon company to provide ongoing software licensing support and maintenance as necessary. The attached quote outlines the anticipated expenditures for the fiscal year 2024-2025. The renewal of the annual software maintenance provides the means to continue to conduct day-to-day activities of the Police Department without delay. The Software Agreement may be subject to any applicable sales tax(es) to be added at a later time.

Financial Impact:

Project Name: Hexagon Software Yearly Maintenance
Cost: $288,790.92
Account Number Budgeted: 001-04-061-0221-2-4231, 001-04-061-0223-2-4231, 001-04-061-0224-2-4231
FY Budgeted Amount: $195,630. The budget overage balance will be covered by the budget in account number 001-04-061-0220-2-4290
Grant Funded: n/a
Funding Source: Costs for the software are shared with Coconino County Sheriff's Office and Northern Arizona University Police Department per Intergovernmental Agreements IGA-2023-123-AG2 and IGA-2023-126-AG2.

Policy Impact:

None.

Previous Council Decision or Community Discussion:

This is an annual software contract that has been before Council every year since 2013.

Options and Alternatives to Recommended Action:

Approve the 2024 Renewal of the Software Agreement with Hexagon for the Police Department software; or
The Flagstaff Police Department can coordinate with the Coconino County Sheriff's Office and Northern Arizona University Police Department on alternative options moving forward.

Background and History:

The Flagstaff Police Department, Coconino County Sheriff and Northern Arizona University have used Hexagon, formally Intergraph, since before 2013, and is part of intergovernmental agreements IGA-2023-123-AG2 and IGA-2023-126-AG2 between the Flagstaff Police Department, Coconino County Sheriff's Office, and Northern Arizona University Police Department. Hexagon requires a renewal of the Software Agreement on an annual basis.

Connection to PBB Priorities and Objectives:

High Performing Governance: Encourage public trust through transparency, accessibility and use of the City's public participation policy.
High Performing Governance: Become an employer of choice and provide employees with the necessary tools, training and support.
Safe and Healthy Community: Provide public safety with the resources, staff and training to respond to community needs.
Team Flagstaff Strategic Plan: Provide exceptional service.

Connection to Regional Plan:

n/a

Connection to Carbon Neutrality Plan:

n/a

Connection to 10-Year Housing Plan:

n/a

Attachments:

2024 Renewal

Cost Share Breakdown

Maintenance Renewal Quote

Dispatch IGA

Records IGA

8.D.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Emily Markel, Purchasing Manager

Co-Submitter:

Manuel Rivera Facilities Maintenance Manager

Co-Submitter:

Teddy Callan

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

Consideration and Approval of Contract: Approve Two City-Wide Custodial Services Contracts; CD Phoenix, LLC dba DetailXPerts and Pinnacle Janitorial, Inc. dba Building Services

STAFF RECOMMENDED ACTION:

Approve Two City-Wide Custodial Services Contracts; CD Phoenix, LLC dba DetailXPerts (10 Facilities) and Pinnacle Janitorial, Inc. dba Building Services (12 Facilities); and
Authorize the City Manager to execute the necessary documents.

Executive Summary:

The City of Flagstaff is currently contracted with two custodial service providers that were contracted under a 2018 Request for Proposals (RFP), with the current and final extensions set to expire in the near future. The City solicited a new RFP (2024-26) for custodial services to support City facilities in need of such services. Through this solicitation process, and the evaluation of the contractors that submitted proposals, staff is recommending the selection of two firms to provide custodial services to the various City of Flagstaff facilities. Staff is recommending an award to multiple vendors to minimize risk should a vendor have performance issues. The term of the Contract for each contractor is for five (5) consecutive years, with two (2) additional one (1) year optional renewals thereafter.

DetailXPerts

Pinnacle Building Services

Business Accelerator
City Park Restrooms
Core Services Maintenance Facility
Flagstaff Visitor Center
Material Recovery Facility
Milligan House
NACET Business Incubator
ParkFlag Office (Hopi Building)
Water Services Administration Building
Water Services Shop East Side

Cinder Lake Landfill Admin Building
City Hall
City Prosecutor's Office
Downtown Library
East Flagstaff Library
Flagstaff Aquaplex
Hazardous Products Center (located at Cinder Lake Landfill)
Mogollon Building
Municipal Court
Rio De Flag Water Treatment Facility
USGS (Four buildings)
Wildcat Hill Water Treatment Facility

Financial Impact:

Project Name: Custodial Services: Mulitple City Facilities
Total City-wide Cost: $799,000. Each Division pays for their facilities
FY2024-25 Budgeted Amount: Budget Specific to each Division for Custodial Services. Total City-wide Custodial budget is $943,229
Grant Funded: No
Funding Source: Varies by Division

The expenditures will be charged to the appropriate division's budget for each facility. The cost of supplies will be the responsibility of the Contractor and will be billed to each facility.

Policy Impact:

To provide clean and presentable City facilities for use by both the public and City employees.

Previous Council Decision or Community Discussion:

On November 6, 2018, Council approved prior custodial services contracts for two service providers for all City facilities.

Options and Alternatives to Recommended Action:

Approve the City-Wide Custodial Service Contracts; CD Phoenix, LLC dba DetailXPerts and Pinnacle Janitorial, Inc. dba Building Services; or
Do not approve:
- Instruct staff to provide internal custodial services; or
- Re-solicit the Request for Proposals for City-wide custodial services.

Background and History:

The current custodial service contracts were set to expire in May 2024 but were extended to August 2024 via an amendment to the contract in order to allow time to complete the procurement and negotiate the new contracts. The Custodial Service Contracts attached to this staff summary provide a detailed breakdown of the facilities to be serviced, including, the frequencies, service levels, timings and functions for each facility.

The City received a total of eight proposals for custodial services. An evaluation committee consisting of representatives of various City facilities and one outside representative reviewed and scored the proposals. The three highest-scoring Proposers were then invited to a formal discussion with the Evaluation Committee. The discussions consisted of an established set of questions provided to the contractors beforehand. The combined scoring tabulation from the initial evaluation of the proposals and the discussion process resulted in two top Proposers: DetailXperts and Pinnacle Building Services. Some history regarding the selected Contractors is provided below.

Pinnacle Building Services was founded in 1994, in Flagstaff, Arizona. In their proposal, Pinnacle described utilizing two tools to help provide proactive service and maintain customer focus; Connecteam for reporting, tracking and training materials, and Sortly for inventory management. Pinnacle scored 613 out of the total 690 points possible.

DetailXperts LLC was founded in 2002. In their proposal, DetailXperts explained that their steam-cleaning approach, along with utilization of biodegradable products, allows them to get a deeper clean. DetailXperts utilizes Geo tracking for clock-in and out and employee monitoring, and have a user-friendly Client Portal for City Staff access. DetailXperts scored 579 out of the total 690 points possible.

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:

DetailXPerts Custodial Contract

Pinnacle Building Services Custodial Contract

8.E.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Christopher Phair, Transportation Planner

Co-Submitter:

Martin Ince

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approve the Grant Agreement with the Federal Highway Administration in the amount of $12,014,989 of which $9,611,991 is Federal Highway Administration share, and $2,402,998 is City of Flagstaff share as part of a grant match; and
Authorize the City Manager to execute all necessary documents.

Executive Summary:

The Butler Avenue Complete Streets Conversion is a holistic Safe Systems Approach project emphasizing Safer Roads, Safer People and Safer Speeds. For Safer Roads, it will convert 0.9 miles of arterial road in the urban center of Flagstaff to a Complete Street. This includes the construction of fully separated bike lanes along both sides of Butler Avenue, enhanced pedestrian facilities, accessibility improvements, protected intersection features at three major intersections, enhancement of the existing Rapid Flashing Beacon crossing at Humphreys St and Butler Ave, and construction of a new enhanced crossing at O'Leary St and Butler Ave. A comparison of crash history and speed studies prior to and following the project will evaluate the success of this work. This project is designed to improve walking and biking on Butler Ave and to reduce the number and severity of conflicts between vehicles and vulnerable roadway users along the corridor. This project is the result of extensive research and outreach to community members throughout the Southside Neighborhood.

Financial Impact:

Project Name: Butler Avenue Complete Streets Conversion
Cost: $12,014,989
Account Number Budgeted: 048-10-120-3516-6-4441
FY Budgeted Amount: 2025; $1,000,000; 2026: $5,507,495; 2027: $5,507,494
Grant Funded: Yes, with City match
Funding Source: U.S. Department of Transportation, Federal Highway Administration

Policy Impact:

None.

Previous Council Decision or Community Discussion:

Council adopted in 2022 and approved an amendment in 2023 to the Active Transportation Master Plan to include this project.

Options and Alternatives to Recommended Action:

Approve the Grant Agreement; or
Not approve Grant Agreement which would prevent $9,611,991 of financial benefit to the City of Flagstaff for improving pedestrian and cyclist safety through the urban center of Flagstaff.

Connection to PBB Priorities and Objectives:

Safe & Healthy Community: Promote physical and mental well-being through providing recreational opportunities, parks, open space, and active transportation options
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 T.1.1. Integrate a balanced, multimodal, regional transportation system.
Policy T.1.2. Apply Complete Street Guidelines to accommodate all appropriate modes of travel in transportation improvement projects.
Policy T.1.6. Provide and promote strategies that increase alternate modes of travel and demand for vehicular travel to reduce peak period traffic.
Policy T.2.1. Design infrastructure to provide safe and efficient movement of vehicles, bicycles, and pedestrians.
Policy T.3.2. Promote transportation systems that reduce the use of fossil fuels and eventually replace with carbon neutral alternatives.

Connection to Carbon Neutrality Plan:

Decreased Dependence on Cars
DD-2: Create inclusive networks for walking and biking that are continuous, attractive, safe, comprehensive, and
convenient for people of all ages.
DD-3: Encourage Flagstaff residents and visitors to walk, bike, roll and take the bus.

Connection to 10-Year Housing Plan:

5.8 Prioritize Capital Improvement Projects that facilitate affordable housing.

Connection to Division Specific Plan:

Active Transportation Master Plan Policies:
1.1 Implement networks for walking and biking that are continuous, attractive, safe, comprehensive, and convenient.
1.2 Provide frequent and comfortable crossings to eliminate barriers and avoid breaks in pedestrian and bicycle networks.
1.7 Identify and take advantage of opportunities to fund and implement the pedestrian and bicycle network.
4.5 Verify that walking and biking facilities allow and encourage safe behavior for all users.

Attachments:

Final Grant Agreement

SS4A FY2023 Exhibits

SS4A FY2023 Terms and Conditions

8.F.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Jonathan Damico, IT Administrator

Co-Submitter:

Paul Santana

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Ratify an expenditure of $156,051.25 for network and security hardware and services from HyeTech Network & Security Solutions, LLC; and
Approve the Cooperative Purchase Contract with HyeTech Network & Security Solutions, LLC for the IT Section to purchase network and security hardware and services for the fiscal year budgeted amount for the term of the Agency Contract; and
Authorize the City Manager to execute the necessary documents.

Executive Summary:

For FY2024 and FY2025 the City Council approved budget for network and security hardware and services is $600,000. This fiscal year to date the City has spent $156,051.25 with HyeTech Network & Security Solutions, LLC (HyeTech). Staff seeks ratification of the $156,051.25 in purchases and approval of a Cooperative Purchase Contract with HyeTech to allow staff to continue to purchase network and security hardware and services to implement, support, and maintain necessary IT functions.

The 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 HyeTech for the fiscal year budgeted amount. It is anticipated that future need under the duration of the 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 in the amount of $600,000 for FY2024 and FY2025. This cost has been budgeted primarily in the following Information Technology account: 001-01-014-0044-1-4301 as well as other accounts within the 001-01-014-0044-1 category for the networking team.

Policy Impact:

None.

Previous Council Decision or Community Discussion:

None.

Options and Alternatives to Recommended Action:

Ratify an expenditure of $156,051.25 with HyeTech; and
Approve the Cooperative Purchase Contract with HyeTech for the fiscal year budgeted amount for the term of the Agency Contract; or
Do not authorize the Cooperative Purchase Contract and provide staff direction regarding network and security hardware and services.

Background and History:

The City of Flagstaff Information Technology Division routinely considers and evaluates suppliers to ensure we are providing the best solutions and services to our customers, City of Flagstaff employees, and Network Security providers are no exception to this policy. Staff seeks to use a State of Arizona cooperative purchase contract to enter into an agreement with HyeTech to allow Staff to continue to purchase necessary to implement, support, and maintain the current network and security hardware.

The State of Arizona, Procurement Department, Public Sector conducted a competitive and open procurement process through Request for Proposal Solicitation No. BPM003793 that resulted in Contract No. CTR059868 with HyeTech Network & Security Solutions, LLC. The City of Flagstaff Purchasing staff has reviewed the underlying Agency Contract and has confirmed that it is still current and within the scope of work.

Connection to PBB Priorities and Objectives:

Sustainable and Innovative Infrastructure: Deliver outstanding services to resident through a healthy, well-maintained infrastructure system.
Safe & Healthy Community: Provide public safety services with resources, staff, and training responsive to the community's 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, Networking improvements, and Cyber Security Best Practices, ensure a reliable, safe, and efficient network permitting every employee to have the connectivity necessary to support the City and residents.

Attachments:

Cooperative Purchase Contract

Exhibit A - Memo

Exhibit B.1 - Agency Contract

Exhibit B.2 - Agency Contract Amendment 3 Extension 2025

Exhibit B.3 - Pricing Sheet

Exhibit B.4 - Discount

8.G.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Denae Presler, Climate Analyst

Co-Submitter:

Nicole Antonopoulos

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Executive Summary:

The City of Flagstaff formed a coalition with Coconino County and the City of Sedona to develop a proposal for the Environmental Protection Agency (EPA) Climate Pollution Reduction Grant (CPRG) program to address liability biomass challenges in the region. The City of Flagstaff, Coconino County, and City of Sedona have shared interests and goals to reduce greenhouse gas emissions and mitigate risks from regional sources of organic waste, including overstocked forests, wastewater biosolids, and residential food and yard waste, which are collectively referred to as liability biomass. City staff submitted the $57.5 million project proposal, known as the Northern Arizona Biomass Innovation Hub (NABI Hub), to the EPA on March 29, 2024.

As part of the application process, EPA requires that a Memorandum of Agreement (MOA) between the City of Flagstaff, Coconino County, and City of Sedona be submitted by July 1, 2024. Staff are seeking City Council approval of the MOA and to authorize City Manager to execute this Agreement and any other Agreements required of this grant. If awarded, acceptance of the grant would come to City Council for approval.

EPA anticipates releasing a notice of awards in July 2024, with an estimated project start date of October 1, 2024. The period of performance is up to five years from the project start date.

Financial Impact:

This MOA requires no financial impact and is non-binding to financial liability. The CPRG grant has no match requirement of the lead applicant, nor the coalition.

Policy Impact:

This MOA supports Council goals, the Regional Plan, and the Carbon Neutrality Plan.

Previous Council Decision or Community Discussion:

This project proposal was included in the 2024 State and Federal Legislative Priorities, discussed at the January 16, 2024 City Council Meeting.

Options and Alternatives to Recommended Action:

Failure to submit an MOA between the coalition members by July 1, 2024, may impact EPA's ability to award the grant. If the Council desires modifications to the MOA, staff recommends making amendments to the MOA if the grant is awarded and when the Council considers accepting the grant.

Connection to PBB Priorities and Objectives:

N/A

Connection to Regional Plan:

N/A

Connection to Carbon Neutrality Plan:

N/A

Connection to 10-Year Housing Plan:

N/A

Attachments:

Northern Arizona Biomass Innovation Hub Summary

Memorandum of Agreement

8.H.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

David McIntire, Community Investment Director

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Approve Amended and Restated Contract with Flagstaff Arts Council in an amount not to exceed $875,626.00

Executive Summary:

The City has had a contract with Flagstaff Arts Council (also known as Creative Flagstaff) since 2017. Creative Flagstaff has been our Lead Arts Agency and provided grant process and management for the non-profit and artist community. This contract is funded by a 2% local transaction privilege tax on gross revenues from the hotel and restaurant industries, also known as the Bed, Board and Beverage (BBB) tax. This is the final year the contract may be extended.

The contract and the initial two amendments have three main focus areas:

Lead Arts Agency - numerous activities to elevate the arts in the community,
Grant making for arts, culture and science programs - provide a fair and beneficial process to provide BBB grant funds to non-profit partners and projects,
Art X - Create and deliver an arts and ideas festival in Flagstaff.

This third amendment accomplishes a number of tasks for the coming fiscal year:
1) It adjusts the scope of the Lead Arts Agency portion of the contract based on discussions between Creative Flagstaff and City of Flagstaff staff;
2) It adjusts the funding amounts based on this year's budget allocation and the new scope of work;
3) It extends the timeline for the expenditure of ARPA grant funding;
4) It extends the contract for a final year.

Financial Impact:

Project Name: Creative Flagstaff Arts, Culture and Science Contract
Cost: $875,626
Account Number Budgeted: BBB - 054-07-216-0872-5-4273, 054-07-216-0873-5-4273, 054-07-216-0873-5-4290; ARPA - 001-09-402-6321-1-4290
FY Budgeted Amount: $875,626
Funding Source: BBB

The contract encompasses both the funding to Creative Flagstaff and the pass through dollars for non-profits and events. It includes BBB and ARPA funding.

Policy Impact:

There is no formal policy impact.

Previous Council Decision or Community Discussion:

Council approved this contract initially in 2017. City staff has been working with a consultant to perform a community process around arts, culture and science process and investments which will be used to develop the Request for Proposals for a future contract.

Options and Alternatives to Recommended Action:

Council may approve the Amended and Restated Contract.

Council may request changes to the Amended and Restated Contract and staff will work to negotiate those changes with Creative Flagstaff.

Council may reject the Amended and Restated Contract and provide guidance on preferred options.

Background and History:

The City of Flagstaff contracts with Creative Flagstaff for delivery of services related to arts, culture and science in Flagstaff. This is fully funded by the Bed, Board and Booze revenues.

The contract is best known for the grants administration. Creative Flagstaff manages a grant proposal process that will provide $500,000 in grants to approximately 40 non-profits in arts, culture and science areas. These grants work to provide operating support and project support for organizations ranging from small cultural groups, to theater companies, to larger entities such as Lowell Observatory. Creative Flagstaff receives an amount equal to 15% of the granted amounts as a grant administration fee.

Because Creative Flagstaff already performs the grant process for us, the City also requested Creative Flagstaff to provide the ARPA funding out to art, science and culture grantees. This amendment extends the contract timeframe to allow them to complete the use of the ARPA funds.

Additionally, Creative Flagstaff will act as Lead Arts Agency. This portion of the contract is direct service provision in areas that lift the arts, culture and science sectors in the community. Selected examples of the work to be performed (complete list in the Scope of Work for the amendment) are:

Providing the Coconino Center for the Arts (CCA) activation
- Exhibitions - Creative Flagstaff will produce 4-5 unique exhibitions in the Main Gallery and 6-8 unique exhibitions in the Project Gallery. Additionally, for the first time there will be satellite venues for galleries. Also new, is CCA will be offering Presenting Artist Honoraria to support artists exhibiting in the CCA which is anticipated to lead to higher quality shows and to better support for artists. Robust programming will accompany each exhibition with guest lectures, panel discussions and art workshops.
- Theater Concerts, Performances and Presentations - CCA will host 50 unique performances and develop a new Emerging Artist Series to offer paid opportunities for local performers.
- Community Arts Markets - CCA will provide two community artisan markets. One in Fall 2024 and an indigenous market in Spring 2025.
- CCA 40th Anniversary - A celebration event with a gallery exhibition and a weekend of local music among other offerings.
Arts Leadership
- Professional Development Opportunities including Artwork Photographic Documentation, Digital Submissions and Platforms for Grants, Artis Business Licensing and many more.
- Convening Creative Community - Facilitating quarterly community forums on topics such as Cultural Appropriation and Sensitivity, Artificial Intelligence and the Arts, and others.
Art, Artwalk and Satellite Venues
- ArtX - 3-4 ArtX engagements throughout the year,
- Satellite Venues - Pilot project to do satellite exhibitions in other parts of the community.
Accountability
- Tracking and measuring benefit through qualitative and quantitative data

Connection to PBB Priorities and Objectives:

Aspects of the grant -making process or the Arts Leadership role address PBB Key Community Priorities and Objectives in each area below:

Inclusive and Engaged Community

Sustainable and Innovative Infrastructure

Robust and Resilient Economy

Livable Community

Connection to Regional Plan:

Goal CC.5 - Support and promote art, science and education resources for all to experience
Goal CC.2 - Preserve, restore and rehabilitate heritage resources to better appreciate our culture.

Connection to Carbon Neutrality Plan:

CR-2 Strengthen existing community systems to create resilience to both short term shocks and long term change.

Connection to 10-Year Housing Plan:

n/a

Connection to Division Specific Plan:

n/a

Attachments:

Amended and Restated Contract

9.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Heidi Hansen, Economic Vitality Director

Co-Submitter:

Rebecca Sayers

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Adopt Resolution No. 2024-22
Read Ordinance No. 2024-16 by title only for the final time
City Clerk reads Ordinance No. 2024-16 by title only (if approved above)
Adopt Ordinance No. 2024-16

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:

Ord. 2024-16

Res. 2024-22

2024 BBB Related Amendments

Presentation

9.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Kristin Decker, Special Services Supervisor

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Ratify the Cooperative Purchase Contract with Motorola Solutions, Inc. in an amount not to exceed $183,072.68 for radio equipment and accessories for the Flagstaff Police Department; and
Authorize the City Manager to execute all necessary documents.

Executive Summary:

This is a request for ratification of a Cooperative Purchase Contract in an amount not to exceed $183,072.68 for the purchase of 20 portable radios and accessories for the Flagstaff Police Department. This purchase will replace damaged equipment that is no longer serviceable and provide additional portable radios for emergency responses. During recent multi-agency responses the City recognized the need to have portable radios available for mutual aide partners to ensure open communications between agencies. This purchase maintains the standardization of the equipment citywide and with partnering agencies to support day-to-day operations and emergency responses. The radios were tested for compatibility and safety prior the larger purchase made in 2023 and this model meets the communication needs to perform City services.

The ratification allows the City to issue the purchase order necessary to begin the manufacturing and retain the lowest pricing available for the 20 radios needed by the Flagstaff Police Department and to utilize the one-time funding available in fiscal year 2024.

Financial Impact:

The Flagstaff Police Department is requesting the ratification of a purchase of 20 Motorola APX 8000 portable radios and accessories including chargers and microphones at a cost of $183,072.68. The one-time funds available in fiscal year 2024 to purchase these portable radios is located in non-departmental account 001-09-402-1310-2-4407. The purchase has been authorized by the Budget Team for the Police Department this fiscal year.

Policy Impact:

The decision to purchase or not to purchase new radios should have no impact on City policies.

Previous Council Decision or Community Discussion:

Yes.
In 2011, City Council approved the purchase of radios and radio equipment.
In 2018, Council approved the upgrade to the Public Safety Radio system.
In 2022, Council approved $2.6 million for the purchase of public safety communication equipment.
In 2023, Council approved $2.1 million for the purchase of radios and radio equipment for multiple City divisions.

Options and Alternatives to Recommended Action:

Ratify the Cooperative Purchase Contract with Motorola Solutions, Inc. in the amount of $183,072.68; or
Not ratify the purchase of the portable radios and accessories.

Background and History:

The Flagstaff Police Department currently uses Motorola APX 6000, 7000 and 8000 portable radios and their accessories. In total, we currently have 134 radios. Of these, 113 are the APX 7000 model which has been discontinued and Motorola is no longer providing replacement parts. Our goal in requesting to ratify purchase additional radios and their accessories is to replace this model in our inventory which is no longer serviceable as they are damaged and the funds must come from fiscal year 2024.

Purchasing staff reviewed the State's cooperative contract and determined it to be current and applicable to the purchase of the radio equipment, setup, accessories, and service. The decision to ratify this purchase was to begin manufacturing of the radios, hold the lowest price possible, and order the units in this current fiscal year as the funding is only allocated in fiscal year 2024.

Connection to PBB Priorities and Objectives:

High Performing Governance. Replacing outdated and unsupported radios and equipment will improve the ability for the Flagstaff Police Department to perform their public safety duties by providing the tools to communicate in the field.

Safe and Healthy Community. The ability for public safety officials to communicate in the field is crucial to their day to day and emergency response job functions. They receive critical information through their radios detailing pertinent information necessary to be prepared for handling the events of a call, not only for their safety, but in keeping the greater public safe.

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:

Health and Safety: Improve the resilience of public infrastructure and City facilities.

Connection to 10-Year Housing Plan:

None.

Attachments:

Presentation

2024-179 Motorola Solutions Inc

Exhibit A - Radios

Exhibit B1 - Contract Documents

Exhibit B2 - Pricing

9.C.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Wesley Welch, Planner

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Executive Summary:

TLC PC Land Investors, LLC requests Preliminary Plat approval for Ghost Tree II, located at 3201 S Clubhouse Circle, a single-family subdivision of 12 lots on 7.87 acres in the Single-Family Residential (R1) Zone. This site has a Resource Protection Overlay and is currently vacant. It is located within the Pine Canyon 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:

The final plat was approved by Council on January 3, 2023. However, there were many small errors in the plat and the Coconino County Recorder's office would not record the document with a list of corrections. This plat has corrected those issues and is now going through the process once again to receive approval.

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 Preliminary 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:

TLC PC Land Investors, LLC is seeking Preliminary Plat approval for a 12-lot single-family residential subdivision within the larger Pine Canyon development. Lot sizes range from 9,342 square feet to 21,861 square feet. The subdivision is one of the last undeveloped areas in Pine Canyon and is located between existing golf course and residential uses. The final plat was approved by Council on January 3, 2023. However, there were many small errors in the plat and the Coconino County Recorder's office would not record the document with a list of corrections. This plat has corrected those issues and is now going through the process once again to receive approval.

Since the first approval of the final plat, the applicant has identified an issue with meeting the originally proposed building envelopes. Due to the topography of the site, the side-loaded garage design (which helped to accommodate building envelopes that met resource protection standards) has been changed in order to minimize the length and slope of the driveways. The new building envelopes, slightly modified to make room for front-loaded garages, require a reduction in the required amount of preserved slope. Pursuant to Section 10-50.90.110(B), the Commission may allow a modification to the required resources.

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:

N/A

Attachments:

P+Z Staff Report

Application

Vicinity Map

Preliminary Plat

NRPP Comparison Sheet

Modification Request Letter

Building Envelope Comparison

Review Agency Notifications

Council Presentation

10.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Erin Young, Water Resources Manager

Co-Submitter:

Shannon Jones, Water Services Director

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Executive Summary:

This action adopts an ordinance increasing water, sewer, and reclaimed water user and service fees, and water and sewer capacity fees. The charges are increased over five years to adequately fund operations, maintenance, debt repayment, and replacement projects contained in the ten-year capital improvement program per Council direction.

Financial Impact:

Water, wastewater, and reclaimed water utility rates and fees and water and wastewater capacity charges will be phased in over a 5-year period. The new rates for Year 1 would take effect on September 1, 2024:

Year 1: September 1, 2024 through December 31, 2025
Year 2: January 1, 2026 through December 31, 2026
Year 3: January 1, 2027 through December 31, 2027
Year 4: January 1, 2028 through December 31, 2028
Year 5: January 1, 2029 through December 31, 2029

Policy Impact:

The City is proposing modifications to the water, wastewater, and reclaimed water rates and rate structures, increasing water and sewer capacity fees, and increasing miscellaneous water charges, to meet cost recovery requirements for services provided to specific customers. The impact on the combined utility bill for water and wastewater service was carefully considered in determining the appropriate balance between the proposed rate changes and debt financing. Based on the ten-year financial plans, a synopsis of cost impacts is explained below:

Water
The water enterprise fund is impacted by multiple cost factors over the five-year planning period including:

Operating cost increases for treatment chemicals due to scarcity and supply challenges.
Operating cost increases for contractual services necessary for treating raw water.
Increasing costs for replacing and repairing aging infrastructure.
Surface water treatment plant upgrades to improve water source resiliency and maintain water quality.
Increasing costs required for drought preparedness through watershed health.
Additional operations and trades staff to support a growing community, and capital improvement program development.
Operating cost increases for personnel services and benefits.
Adjustments to water capacity fess and revenues to align fee per single family equivalent (3/4-inch meter equivalent) with current level of service requirements, growth-related shares of past infrastructure investments and planned capital improvements, and preparations for sustainable future water supplies.
While Water Services proposed to decrease the base fee from 29% cost recovery to 25% cost recovery, the overall increases to base fees are proposed to better reflect the recovery of fixed operating costs.
Increases to commodity rates are proposed to generate sufficient revenues to maintain the water fund as a self-sustaining enterprise, encourage efficient water use and urge conservation.
Condensing the Institutional customer class to the Commercial customer class to remove single-user categories from the customer class list.
Additionally, the ratios between water rate tiers are being adjusted to provide price incentives for efficiency indoors and re-setting the cost-of-service of providing water for outdoor water uses.

Wastewater
The wastewater enterprise fund is impacted by multiple cost factors over the five-year planning period including:

Operating cost increases for treatment chemicals due to scarcity and supply challenges.
Increasing cost for replacing and repairing aging infrastructure.
Maintenance cost increases of system infrastructure due to deferred maintenance due to a lack of funding and increased system demand.
Operating cost increases for personnel services and benefits.
The introduction of base fees are proposed to reflect the recovery of fixed operating costs and adjusted for the cost-of-service to each customer class.
Adjustment to the wastewater capacity fees and revenues to align the fee per single family equivalent (3/4-inch meter equivalent) with current level of service requirements including solids treatment capacity, growth-related shares of past infrastructure investments and planned capital improvements, and preparations for future wastewater treatment expansions.
Adjustments to volumetric rates are proposed to reflect the cost of wastewater loadings by customer class and generate sufficient revenues to maintain the wastewater fund as a self-sustaining enterprise.

Overall, from FY 2025 through FY 2029, the water, wastewater, and reclaimed water base fee and volumetric rate changes are forecasted to generate an increase in average annual revenue of up to $1.7 million or 9.4% in the water fund, $1.7 million or 12.5% in the wastewater fund, and $102,000 or 8.1% in the reclaimed water fund and become effective September 1, 2024. Details of the increase are provided in a written report with data supporting the changes on file with the City Clerk and posted to Flagstaff's Rate Study webpage at www.cleanwaterflagstaff.com.

Water and Wastewater Miscellaneous Charges
To address cost recovery, to meet the City's financial policy that charges recover all direct and indirect costs of service, miscellaneous charges are assessed to specific users of the service so that general rate payers do not bear the burden.

Previous Council Decision or Community Discussion:

On April 16, 2024 Council adopted a Notice of intention to increase water, sewer, and reclaimed water rates or rate components, fees, or service charges

Water Services has presented on various elements of the rate study to City Council beginning February 2023. The videos of these meetings are available on the City's Rate Study website cleanwaterflagstaff.com from the "View Past Meetings" tab. Here is a list of all meetings where staff presented to City Council on the Rate Study:

February 21, 2023 Discussion regarding a rate and fee study for water, reclaimed water, and wastewater funds.
March 7, 2023 Consideration of a Contract for Professional Services with Stantec Consulting Services, Inc
September 5, 2023 Introduction of the Rate Study Team
December 12, 2023 Water, Wastewater, and Reclaimed Water Rate Study Presentation 1 of 2 on Capacity Fees and Misc. Fees
January 23, 2024 Water, Wastewater, and Reclaimed Water Rate Study Presentation 2 of 3 on Capacity Fees and Misc. Fees
February 6, 2024 Water, Wastewater, and Reclaimed Water Rate Study Presentation 3 of 3 on Capacity Fees and Misc. Fees
February 13, 2024 Introduction to Water, Wastewater, Reclaimed Water Rate Design
April 2, 2024 Follow-up discussion from the March 25, 2024 City Council - Water Commission Joint Meeting
April 16, 2024 Notice of intention to increase water, sewer, and reclaimed water rates or rate components, fees, or service charges
May 16, 2024 Council special worksession; presentation from Water Services Director on the operational needs of the Division
May 21, 2024 Presentation from Stantec on Financial Model Assumptions; Direction from Council on changes to assumptions
June 4, 2024 Staff presentation on the results of Council's Direction; Council directed staff to proceed with changes for the June 18 Public Hearing

Joint meetings of the Flagstaff City Council and Water Commission were held on the following dates. The videos of these meetings are available on the City's Rate Study website cleanwaterflagstaff.com from the "View Past Meetings" tab.

October 23, 2023 Discussion and Direction on the Rate Study Financial Plans
March 4, 2024 Wastewater Rate Design Workshop & Direction on Rate Design
March 25, 2024 Water & Reclaimed Water Rate Design Workshop & Direction on Rate Design

Presentations were provided to the Water Commission about the Rate Study on the following dates. The videos of these meetings are available on the City's Rate Study website cleanwaterflagstaff.com from the "View Past Meetings" tab.

August 7, 2023 Introduction of Stantec Team
September 21, 2023 Rate Study Update on Task 2
October 19, 2023 Rate Study Financial Planning Scenarios Presentation and Discussion
November 16, 2023 Rate Study Approach for Capacity Fee Calculations, Cost Allocations, Misc. Fees
December 14, 2023 Update on Capacity Fee Calculations, Cost Allocations, Misc. Fees
January 18, 2024 Water, Wastewater, and Reclaimed Water Rate Study Presentation on Capacity Fees and Misc. Fees
February 15, 2024 Rate Design Discussions with Water Commission
March 21, 2024 Brief update from staff with questions for commissioners
April 18, 2024 Stantec provided the same presentation given to Council on April 16

Community Meetings

Water Services held a Water Rate Study Informational Meeting on December 7, 2023. This was a public information meeting available as a dial-in (spanish or english) or WebEx. Video is available on cleanwaterflagstaff.gov
Water Services held a drop-in meeting on Capacity Fees at its Administrative Offices on January 30 & 31
Water Services tabled at the Downtown Community Library on April 1 from 5-7 pm; Jay Lively Ice Arena on April 3 from 5-7 pm
Water Services tabled at Science Saturday at Willow Bend on April 6, Joe Montoya on April 10 from 10-noon
Water Services held a drop-in event at the East Flagstaff Community Library on April 8, 2024 from 5:30 to 7:00 pm
Water Services provided information on the rate study and held a tour at the Rio de Flag Water Reclamation Plant on April 13, 2024 at 10 am
Water Services tabled at Earth Day on April 20th from 11 am to 2 pm
Water Services were invited to introduce the rate study before a hike at Schultz Creek with Friends of the Rio de Flag on May 2 at 5 pm
Water Services tabled for the rate study during the Arizona Department of Environmental Quality community event on wastewater systems at the East Flagstaff Library on May 8, 2024 from 5:30 to 7 pm
Water Services held a drop-in event at the Aquaplex on May 18, 2024 from 11 am to 2 pm

Meetings to discuss various components of the Rate Study have been held with individual customers and community groups including the Greater Flagstaff Chamber of Commerce, Capstone Homes, Northern Arizona University, Snowbowl, a member of the Downtown Business Alliance, Historic Brewery, Joy Cone. Community "Roundtable" type discussions were held in September 2023. Staff also presented to the Economic Collaborative of Northern Arizona, Friends of Flagstaff's Future, and the City's Tourism Commission (April 25), Airport Commission (May 9), and Housing Commission (May 23). The community groups comprised representatives of the City of Flagstaff's commissions.

The City released a website for rate study information in October, 2023 at cleanwaterflagstaff.com. Between October and April, the website had over 2,800 views. The site had 2,966 views in April, and 4,188 views in May. A Water Rate Calculator was added to the site on April 16 and video on how to use the calculator is available on the website, released on May 24. Customers can leave comments from the website.

Water Services has emailed out notices throughout the study to multiple lists of customers and organizations, sharing information about Council or Commission meetings, and community meetings, to customers monthly. The City's Public Information Office issued press releases related to the rate study, on October 16, 2023, December 12, 2023, February 29, 2024, and March 28, 2024. A notice of the June 18 and July 2 public hearing dates are scheduled for the Daily Sun.

Options and Alternatives to Recommended Action:

Council may elect to change elements of the rate study. Doing so would result in a time and dollar increase change order on the contract with Stantec and delay the public hearing process.

Connection to PBB Priorities and Objectives:

Serve the public by providing high-quality customer service
Deliver outstanding services to residents through a healthy, well-maintained infrastructure system
Support and strengthen a robust, diverse, and sustainable economy
Promote, protect, and enhance a healthy, sustainable environment and its natural resources

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 efficient delivery of services.

Connection to Carbon Neutrality Plan:

CR-2 Strengthen existing community systems to create resilience to both short-term shocks and long-term change.
WS-1 Improve water infrastructure and expand water reuse.
HS-3 Adequately fund services for disaster preparedness.
HS-4 Improve the resilience of public infrastructure and City facilities.

Connection to 10-Year Housing Plan:

None

Connection to Division Specific Plan:

Council-adopted Water Policies (Utilities Integrated Master Plan 2014)
Section A Finance Policies:
Policy A1.1, A1.2
Policy A3.1, A3.2, A3.3

Attachments:

Res. 2024-30

Water Services Rates Code Changes

Ord. 2024-19

10.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Brandi Suda, Finance Director

Co-Submitter:

Heidi Derryberry

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

Public Hearing: Fiscal Year 2024-2025 Budget and Property Tax Levy

STAFF RECOMMENDED ACTION:

Hold the public hearing to receive citizen input
Convene Special Meeting

Executive Summary:

This public hearing is being held to comply with Arizona State Statutes. Arizona Revised Statutes require a public hearing on the proposed final budget and property tax levy, A.R.S. Section 42-17104.

Financial Impact:

Upon adopting the final Fiscal Year (FY) 2024-2025 Budget, the City may commit and spend funds for community needs as described in the budget. The budget is funded through numerous revenue sources, including property tax.

The City is proposing a flat primary property tax levy of $7,159,207 on existing properties (levy from prior year), plus an increased levy of $71,670 on new construction, for a total primary property tax levy in FY 2024-2025 of $7,230,877. The primary property tax rate to support this levy is 0.6363 per $100 of assessed valuation (lower than the prior fiscal year). The proposed levy is less than the maximum allowable primary property tax levy allowed for FY 2024-2025, which is $7,983,170.

The City is proposing a secondary property tax levy of $9,001,046 on existing properties, plus a levy of $90,108 on new construction, for a total secondary property tax levy in FY 2023-2024 of $9,091,154. The proposed secondary property tax rate is 0.8000 per $100 of net assessed valuation (same as the prior fiscal year).

Policy Impact:

The FY 2024-2025 Budget is the financial plan of the City for the upcoming fiscal year.

Previous Council Decision or Community Discussion:

December 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
Tentative Budget Adoption on June 4, 2024

Options and Alternatives to Recommended Action:

1. Conduct the public hearing; or,
2. Delay the public hearing

Background and History:

Budget adoption:
The adoption of the tentative budget set forth into motion a legally mandated time sequence of actions of 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 budget adoption, the final budget adoption, the property tax levy actions, and related publications must be started over. The final budget adoption must occur after a public hearing and Council must convene into a Special Meeting to adopt the final budget. The budget must be adopted by the third week of July. The County must adopt the property tax levy by the first week of August.
The key dates in this year's process are presented below:

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 property tax ordinance
July 2, 2024 Final reading and adoption of the property tax ordinance

The tentative adoption established the maximum appropriation for the City for the FY 2024-2025 budget year. The budget legal schedules were published in the Arizona Daily Sun on June 6, 2024, and June 13, 2024. The final budget adoption allows the City to commit and expend resources as determined to be needed through the FY 2024-2025 budget process. There have been no changes in the final budget recommended for adoption from that presented as the tentative budget. The recommended City of Flagstaff appropriation for FY 2024-2025 is $579,432,772.

Property tax levy:
Primary property taxes are accumulated in the General Fund and pay for general services which include but are not limited to public safety, parks and recreation, other public work services, and general administrative and management functions within the City.

Secondary property taxes support debt service payments on numerous city capital projects including the Aquaplex, fire stations, open space, street/utility projects, forest restoration, the core services facility, courthouse, infrastructure and housing projects.

The City has proposed a flat primary property tax levy in FY 2024-2025 of $7,230,877. The maximum allowable primary property revenue under state law for FY 2024-2025 is $7,983,170. The primary property tax rate will decrease from a rate of 0.6634 in FY 2023-2024 to a rate of 0.6363 in FY 2024-2025 due to a total valuation of all existing properties which are increasing 4.3%. Five years of historical data is shown below:

Property Tax Rates

FY 2020-2021

FY 2021-2022

FY 2022-2023

FY 2023-2024

FY 2024-2025
Proposed

Primary

0.7510

0.7186

0.6954

0.6634

0.6363

Secondary

0.8000

Total

1.5510

1.5186

1.4954

1.4634

1.4363

Truth in Taxation legislation:
Every year, the Truth in Taxation legislation requires that the county assessor, on or before February 10, transmit to each city and town an estimate of the total net assessed valuation of the city, including new property added to the tax roll. If the proposed primary tax levy amount, excluding amounts attributable to new construction, is greater than the levy amount in the previous year, the City must go through the Truth in Taxation procedures. It is important to note that it is the levy amount and not the rate which triggers the Truth in Taxation procedure. The City of Flagstaff has not triggered the Truth in Taxation notification and hearing for FY 2024-2025 and no additional notifications are required.

Connection to PBB Priorities and Objectives:

The budget process has allowed for public participation which is vital for the City Council in determining the current year goals and objectives. The budget translates Key Community Goals and Objectives into a fiscal plan.

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:

FY2024-2025 Final Budget Presentation

11.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Brandi Suda, Finance Director

Co-Submitter:

Heidi Derryberry

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

Consideration and Adoption of Resolution No. 2024-27: A resolution of the Flagstaff City Council, adopting the Budget for the City of Flagstaff for Fiscal Year 2024-2025.

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-27 by title only
City Clerk reads Resolution No. 2024-27 by title only (if approved above)
Adopt Resolution No.2024-27
Reconvene Regular Meeting

Executive Summary:

Each municipality is required to adopt a budget as prescribed by A.R.S. Title 42, Chapter 17, Articles 1 through 5. As published in the tentative adoption of the budget, the final budget is to be adopted on June 18, 2024, (during a Special Meeting), and following a public hearing to receive citizen comments.

Financial Impact:

The final budget adoption allows the City to commit and spend funds for community needs as described in the Fiscal Year (FY) 2024-2025 Budget. This will set the maximum allowable expenditures for FY 2024-2025.

Policy Impact:

The FY 2024-2025 budget is the financial plan of the City for the upcoming fiscal year.

Previous Council Decision or Community Discussion:

December 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 Retreat on April 25, 2024 and April 26, 2024
Tentative Budget Adoption on June 4, 2024

Options and Alternatives to Recommended Action:

Approve the budget as presented: As the City adopted the tentative budget on June 4, 2024, the maximum appropriation for FY 2024-2025 has been set.
Amend and approve the budget: The Council could choose to make adjustments within that maximum appropriation or make reductions in the maximum appropriation.

Background and History:

The budget was presented for tentative adoption on June 4 2024. The tentative adoption established the maximum appropriation for the City for FY 2024-2025. The budget legal schedules were published in the Arizona Daily Sun on June 6, 2024, and June 13, 2024.

The adoption of the tentative budget set forth into motion a legally mandated time sequence of actions of which the Council must adhere to adopt a final budget. If this time sequence is not met as required by statute, the tentative budget adoption, final budget adoption, and related publications must be started over. The final budget adoption must occur after a public hearing and Council must convene into a Special Meeting to adopt the final budget. The budget must be adopted by the third week of July.

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)

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:

Res. 2024-27

FY2024-25 Legal Budget Schedules

12.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Brandi Suda, Finance Director

Co-Submitter:

Heidi Derryberry

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Executive Summary:

The City Council is required to fix and levy the amount to be raised from property taxation after the adoption of the final budget, per A.R.S. Section 42-17151. The final budget is anticipated to be adopted on June 18, 2024.

Financial Impact:

The City is proposing a flat primary property tax levy of $7,159,207 on existing properties, plus a levy of $71,670 on new construction, for a total primary property tax levy in Fiscal Year (FY) 2024-2025 of $7,230,877. The primary property tax rate to support this levy is 0.6363 per $100 of assessed valuation (lower than the prior fiscal year). The proposed levy is less than the maximum allowable primary property tax levy allowed for FY 2024-2025, which is $7,983,170.

The City is proposing a secondary property tax levy of $9,001,046 on existing properties, plus a levy of $90,108 on new construction, for a total secondary property tax levy in FY 2023-2024 of $9,091,154. The proposed secondary property tax rate is 0.8000 per $100 of net assessed valuation (same as the prior fiscal year).

Policy Impact:

Adoption of the proposed property tax levies will generate revenues to help fund the community needs as identified in the FY 2024-2025 Final Budget and policies reflected therein.

Previous Council Decision or Community Discussion:

December 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 Retreat on April 25, 2024 and April 26, 2024
Tentative Budget Adoption on June 4, 2024

Options and Alternatives to Recommended Action:

1) Adopt the primary and secondary property tax rates as proposed.
2) Adopt lower primary and secondary property tax rates than proposed.
3) Adopt higher tax rates than proposed, however, this action may be barred by Truth in Taxation Notice publication deadlines or other legal considerations.

Background and History:

Primary property tax revenues may be used for all purposes. Primary property tax levies are limited, per A.R.S. Section 42-17051. The City has the ability to increase the amount received from the primary property tax levy by a maximum of 2% each year excluding new construction. The maximum allowable increase for FY 2024-2025 is 10.0%. FY 2024-2025 proposed primary property tax levy is set at $7,230,877, which is less than the maximum allowable levy of $7,983,170.

Primary property tax levies are also subject to "Truth in Taxation" notice and hearing requirements, per A.R.S. Section 42-17107. On or before February 10 of each year, the county assessor must transmit to each city and town an estimate of the total net assessed valuation of the city, including new property added to the tax roll. If the proposed primary tax levy amount, excluding amounts attributable to new construction, is greater than the levy amount in the previous year, the city must follow the "Truth in Taxation" procedures. It is important to note that it is the levy amount and not the rate which triggers the "Truth in Taxation" procedures. The proposed FY2024-2025 primary tax levy amount did not trigger the "Truth in Taxation" procedures.

The City is budgeting primary property tax revenues of $7,146,000 in its FY 2024-2025 Budget. This budgeted amount is less than the levy amount because the City is allowing for approximately 1.0% in bad debt (taxes not able to be collected). The City anticipates an overall 0.7% increase in primary property tax revenues in FY 2024-2025, due to the increase from new construction (properties added to tax roll). Primary property tax revenues may be used for any general purpose use of the City government.

Secondary property tax revenues may only be used by cities and towns to retire the principal and interest or redemption charges on general obligation bonds issued to pay for capital projects. Secondary property tax levies are not limited. The City has budgeted a total of $9,091,154 in FY 2024-2025 secondary property tax, an approximate 5.3% increase over the FY 2023-2024 budget ($8,633,802). The increase is directly related to the increased assessed valuation (increase in property values) and new construction. Secondary property tax revenues are used to pay general obligation debt issued for City capital projects. Five years of historical data is shown below:

Property Tax Rates

FY 2020-2021

FY 2021-2022

FY 2022-2023

FY 2023-2024

FY 2024-2025

Proposed

Primary

0.7510

0.7186

0.6954

0.6634

0.6363

Secondary

0.8000

Total

1.5510

1.5186

1.4954

1.4634

1.4363

Primary property taxes account for 7.9% of the General Fund revenues budgeted for FY 2024-2025. The adoption of the property tax levy is the final step in the entire budget approval process.

Connection to PBB Priorities and Objectives:

The adoption of the Annual Budget and Financial Plan provides direction and financial resources to support the Key Community Priorities and Objectives. The property tax adoption is part of the overall City budget adoption.

Connection to Regional Plan:

None

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None.

Attachments:

Ord. 2024-17

12.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Jennifer Mikelson, Housing Planning Manager

Co-Submitter:

Justyna Costa

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

Consideration and Approval of Ground Lease Agreement between the City of Flagstaff and Housing Solutions of Northern Arizona, Inc. for the development of affordable rental housing.

STAFF RECOMMENDED ACTION:

Approve the ground lease with Housing Solutions of Northern Arizona, Inc.
Authorize City Manager to execute the ground lease

Executive Summary:

Approval of this 99-year lease will allow Housing Solutions of Northern Arizona, Inc. (HSNA) to proceed with final grant documents from the Arizona Department of Housing to construct and operate an affordable rental project on City property located at 2240 N. Izabel Street (APN# 109-11-151D). Council approved a lease option with HSNA (GEN-2022-118-AG1) prior to applying for funding in 2022.

Financial Impact:

This affordable rental development would qualify for fee waivers/reimbursements under the Incentive Policy for Affordable Housing (IPAH), which is funded by the general fund.
A ground lease fee of $100 will be collected from HSNA annually.

Policy Impact:

None

Previous Council Decision or Community Discussion:

A Lease Option (GEN-2022-118-AG1) with Housing Solutions of Northern Arizona, Inc. was approved in March 2022.
Prior Council action included a 2018 Purchase and Sale Agreement (GEN-2018-123-AG1) for this property but was not put into effect.

Options and Alternatives to Recommended Action:

Make changes to the draft ground lease; or
Provide alternative direction on the use of the property located at 2240 N Izabel Street.

Background and History:

Project Information
If this ground lease is approved and final loan docs with ADOH are executed, HSNA will begin the work of developing the City's first ever affordable rental project on leased City property. HSNA will construct 11 three-bedroom apartments, which will provide permanent, affordable housing for low-income households. HSNA property managers will connect tenants with community-based resources and case management support as needed. Resources may include physical and mental health services, food resources, transportation support, etc. A portion of the Izabel Street Community Garden will be relocated to make room for one of the apartment buildings. The portion of the garden that will remain in place will be fenced off during construction to prevent soil disturbance. A mitigation plan detailing further soil preservation efforts and remediation requirements will be developed between Sustainability staff and HSNA.

Terms of the lease:

99-year lease term
$100 annual lease fee
State funding requires a 15-year compliance period;
- Project will serve households earning up to 30% AMI, including formerly homeless households and domestic violence victims.
After the 15-year period, the lease requires the project serve an average 80% AMI, with no tenant exceeding 100% AMI.
Preservation of the Izabel Street Community Garden

History of Parcel
In 2018, per Council direction, Housing staff conducted a procurement process (RFP 2018-02), to find a development partner to construct and operate 100% affordable multifamily rental units across three City owned properties. One of the properties was located at 2240 N Izabel Street, adjacent to the BMX Park and the Izabel Street Community Garden in Sunnyside. Concurrent with the procurement process, staff rezoned the .87 acre property from Public Facility to Medium Density Residential in January 2018 (Ordinance 2018-04). By March of 2018 the City had selected Brinshore Development LLC as a development partner and entered into a purchase and sale agreement for City property (GEN-2018-123-AG1). The developer intended to use Low Income Housing Tax Credit (LIHTC) funding to construct the scattered site project. The City stipulated that the community garden be retained onsite. During site planning the garden was shifted 90 degrees counter-clockwise to align with the floodplain and split from the main parcel (new APN# 109-11-151E). A site plan for two 2-story buildings containing 11 three-bedroom units and a leasing office was approved by Planning & Development staff in March 2019. The original site and building plans for the project have expired and will need to be updated through the City's Interdepartmental Staff review process.

In September 2019 the City received a withdrawal letter from Brinshore, indicating there was not sufficient funding to complete the project, and their Low-Income Housing Tax Credits were returned to the Arizona Department of Housing (ADOH).

Two years later, ADOH announced a grant funding opportunity as pandemic-era relief funding became available. Local housing non-profit HSNA contacted Brinshore about reviving the multifamily rental project on Izabel Street, and Brinshore generously agreed to donate plans to HSNA. Council approved a Lease Option (#GEN-2022-118-AG1) for the property in March 2022 prior to HSNA's application for funding. The lease option memorialized HSNA and the City's intention to pursue a long-term lease of City property if sufficient funding to construct the project was obtained. In February 2023, HSNA was notified of their conditional award of over $8 million in funding for the project. Staff processed two one-year extensions of the Lease Option while awaiting funding approval and development of the ground lease. Staff is bringing forward the attached ground lease for Council approval so that final funding contracts may be secured between HSNA and ADOH.

Connection to PBB Priorities and Objectives:

Livable communities Safe and Healthy Community

Connection to Regional Plan:

Policy E&C.9.2. Construction projects employ strategies to minimize disturbed area, soil compaction, soil erosion, and destruction of vegetation.
Policy NH.3.3. Increase the availability of affordable housing for very low-income persons, through innovative and effective funding mechanisms.
Policy NH.5.1. Provide adequate resources for families with children experiencing homelessness.

Connection to Carbon Neutrality Plan:

HA-1: Create housing options for households at all income levels and family sizes occupied by local residents.
HA-2: Connect people to equitable housing solutions.

Connection to 10-Year Housing Plan:

Create 5.9: Prioritize the development of City of Flagstaff owned land designated for affordable housing and evaluate other City-owned parcels for affordable and mixed-income housing.
Connect 3.2: Encourage neighborhoods, housing types, and building practices that increase health.

Attachments:

Lease Option

Lease Option Extension 1

Lease Option Extension 2

Proposed Ground Lease with HSNA

HSNA Ground Lease Presentation

12.C.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Carmen Pryer, Real Estate Specialist

Co-Submitter:

Bryce Doty

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Executive Summary:

This ordinance authorizes the exchange of real property of Substantially equal value: City remnant parcels originally acquired for the Lone Tree Overpass Project will be exchanged for real property interest needed for the same Project from Gary G., and Mary Eileen Hundelt. The exchange provides the following benefits to the City:

Disposes of remnant land no longer needed by City
Offsets the cost to acquire real property interests from Gary G., and Mary Eileen Hundelt
Returns remnant land back to tax base

The remnant properties were evaluated by the Housing Section as per Resolution 2022-52, and it was determined that the remnants are too small to be utilized as stand alone parcels for affordable housing. Additionally, City staff attending and internal property and development team meeting, representing multiple City divisions, did not identify any opposition to the exchange.

City Council is also being asked to consider approval of a Purchase Agreement, which includes terms and conditions of the exchange. The Purchase Agreement is attached to this staff report. The City will be paid $409.00. The City will pay escrow fees and expenses. City also commits to ensuring continued property access as part of the Lone Tree Overpass Project.

Financial Impact:

The Lone Tree Overpass Project (north of Butler Avenue) is currently budgeted in FY2021-2022 in the amount of $8,686,681 in the Transportation Fund, Account Number 047-05-112-3054-6. The Lone Tree Corridor Project (south of Butler Avenue) is currently budgeted in FY2021-2022 in the amount of $250,000 in the Transportation Fund, Account Number 048-05-118-3495-6. Both funds will be utilized to complete the attached Project scope from Route 66 to Sawmill Road.
The areas to be exchanged have been valued at substantially equal value.

Gary G. Hundelt and Mary Eileen Hundelt agree to sell to the City of Flagstaff 282 square feet of fee in the amount of $11,421.00. (as shown on exhibit A)
2. As part of this Agreement the City of Flagstaff agrees to exchange to Gary G. Hundelt and Mary Eileen Hundelt 1,183 square feet of fee in the amount of $11,830.00. (as shown on exhibit B)
Fee 104-01-024 Exhibit A 282 sq/ft @ 40.50 sq/ft $11,421.00
Fee 104-01-023 Exhibit B 1,183 sq/ft @ $10.00 sq/ft - $ 11,830.00
Total to be paid to the City of Flagstaff $ 409.00

Policy Impact:

None

Previous Council Decision or Community Discussion:

On May 16, 2023 Council approved Ordinance 2023-13 authorizing acquisition of this property, including others for the Lone Tree Overpass Project.

Options and Alternatives to Recommended Action:

Retain City remnant parcels, and pay full appraised value for real property interests needed from Gary G. and Mary Eileen Hundelt.
Dispose or use City remnant parcels at a later date.

Background and History:

The Lone Tree Overpass has been a planned project for over a decade in the Flagstaff community. The Lone Tree Overpass Study, which evaluated conceptual design options for the bridge was completed in 2010. The goal of the project is to provide better connectivity for our transportation network and provide a grade-separated crossing which increases safety and convenience for commuters.

The Overpass also coordinates with the future planned improvements of the Lone Tree Corridor reconstruction which was studied in a report completed in 2006. The Lone Tree Corridor and Overpass serves to connect the southern area of town with the Route 66 corridor and provides a option that reduces congestion on other roadway corridors.

A portion of the Lone Tree Corridor from Sawmill Road to Butler Avenue is included in this Overpass design. This section of the corridor was included at this time to provide a coordinated improvement north and south of the Butler Avenue Intersection.

In November 2018, the Flagstaff voters approved a ballot measure to fund the Overpass (Proposition 420) and a separate ballot measure to fund the Corridor Improvements (Proposition 419). Both propositions passed.

On August 21, 2020, the City issued a Request for Statements of Qualifications (RSOQ) from Arizona Registered Contractors for a Design-Builder to provide design and construction services for the Overpass.

On September 24, 2020, the City received four responses to the Request for Statements of Qualifications (RSOQ). Upon the completion of the evaluation process, Ames was determined to be the most qualified Design-Builder to perform the work.

On February 2, 2021, City Council awarded the Design-Build Services Agreement for Phase I of the project development to Ames Construction.

On July 6, 2021, Council passed Ordinance 2021-15, authorizing acquisition of real property for the Project.

Connection to PBB Priorities and Objectives:

Safe and Healthy Community

Foster a safe, secure, and healthy community.
Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices.

Connection to Regional Plan:

Improve transportation safety and efficiency for all modes.

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Attachments:

Presentation

Ord. 2024-18

Exhibit A & A1 - Legal Description 1,183 sf.

Exhibit B - Legal Description 282sf.

Exhibit C - Map

Purchase Agreement

12.D.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Edward Schenk, Water Services Manager - Stormwater

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Executive Summary:

Chapter 12-01 of City Code is titled "Flood Plain Regulations" and provides a comprehensive list of development regulations for FEMA special flood hazard areas (SFHAs). This chapter is required by FEMA for all communities but is up to the community to write and maintain. The current revision of Chapter 12-01 is from 2011 and includes terms and definitions that are outdated. The purpose of this revision is to bring the City of Flagstaff's code up to compliance with the current definitions that FEMA uses in 2024. This revision has no policy implications, no changes in regulations, and no fiscal impact. This update is required by FEMA as part of our Community Rating Service (CRS) rating of 5, which provides a 25% discount to federally-backed flood insurance policies.

Financial Impact:

There is no financial impact of this revision.

Policy Impact:

There is no policy impact of this revision, the revision will update terms and definitions to current FEMA standards.

Previous Council Decision or Community Discussion:

None

Options and Alternatives to Recommended Action:

The alternative is to not move forward with this minor revisions, due to current CRS standards this will disqualify the City of Flagstaff as a Class 5 community under FEMA forfeiting our 25% National Flood Insurance Policy discount.

Background and History:

The Flagstaff community is currently a Class 5 CRS community, providing a 25% discount on National Flood Insurance Policy claims. The City receives this designation through an annual routine audit, and a five-year extensive audit, of flood risk mitigations, actions, and regulations. Chapter 12-01 of City Code provides the majority of the FEMA special flood hazard area (SFHA) regulations for new and existing development in FEMA recognized floodplains and floodways. In the 2019 audit of the City's CRS program there was a recommendation to update Chapter 12-01 to be consistent with current terms and definitions of FEMA. This recommendation became a requirement to remain a Class 5 community in 2021 when the FEMA CRS Handbook was updated. This new requirement was communicated to Stormwater staff in January of this year by our State FEMA regulatory representative (Arizona Department of Water Resources). Stormwater staff consulted with Legal in February and March of this year and are bringing the minor changes required to Council to update Chapter 12-01 to be consistent with FEMA.

Connection to PBB Priorities and Objectives:

Priority Based Budget Key Community Priorities and Objectives
Safe & Healthy Community: Ensure the built environment is safe through the use of consistent standards, rules & regulations, & land use practices

Connection to Regional Plan:

Regional Plan
Goal WR.5: Manage watersheds and stormwater to address flooding concerns, water quality, environmental protections, and rainwater harvesting.
Goal T.21: Improve transportation safety and efficiency for all modes.

Connection to Carbon Neutrality Plan:

This minor revision has no substantial nexus with the Carbon Neutrality Plan

Connection to 10-Year Housing Plan:

This minor revision has no substantial nexus with the 10-Year Housing Plan

Connection to Division Specific Plan:

This supports both the 2025 Water Services Division Plan and the 2028 Stormwater Section Plan

Attachments:

Res. 2024-32

2024 Revisions to Floodplain Regulations

Ord. 2024-20

12.E.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Michelle McNulty, Planning Director

Co-Submitter:

Jennifer Mikelson

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-31 by title only
City Clerk reads Resolution No. 2024-31 by title only (if approved above)
Adopt Resolution No. 2024-31

Executive Summary:

State law allows the City to enter into development agreements (DA) by resolution of the City Council and can be amended through through the same process. The developer has proposed an amendment to the DA to increase the area median income (AMI) limit of the eligible buyers from 100% to 125% AMI. Staff agreed to this increase if the current sales price of $368,0000 is held until the remaining affordable units have sold. Staff also suggested greater flexibility on the maximum housing ratios on future purchase contracts and two one-year extensions to complete the remaining sales.

Financial Impact:

No financial impacts are anticipated with this development agreement.

Policy Impact:

Council Goals
Economic Development - Grow and strengthen a more equitable and resilient economy.
Affordable Housing - Support development and increase the inventory of public and private affordable housing for renters and home buyers.

Team Flagstaff Goals
Strategic Priority #4 - Work in partnership to enhance a safe and livable community.

Regional Plan
Goal NH.3. Make available a variety of housing types at different price points, to provide housing opportunity for all economic sectors.

Previous Council Decision or Community Discussion:

Original Development Agreement (Resolution 2019-18) approved July 2, 2019.

Options and Alternatives to Recommended Action:

1. Approve the Woodshire on Butler Development Agreement as presented.
2. Approve the Woodshire on Butler Development Agreement with additional, modified, or deleted terms.
3. Remand the Woodshire on Butler Development Agreement back to staff for additional negotiations with Woodshire on Butler, LLC.
4. Deny the Woodshire on Butler Development Agreement.

Background and History:

Sale of City Property to Woodshire on Butler LLC
During site planning for the proposed Woodshire development in the summer of 2018 it was proposed that a .74 acre remnant parcel from the planned Herold Ranch roundabout be sold to the developer to achieve two goals: to increase the number of units in the development from 40 to 50, and to provide secondary access to the development from the roundabout.
The City estimated the property's value to be $175,000, or $5.40 per square foot based on comparable sales in the area. The city posted an invitation for bid for the sale of the property in January 2019, with a minimum bid requirement of $130,000, or $4.00 per square foot, plus the legal obligation to construct a minimum of five (5) permanently affordable ownership units. Brookfield was the sole bidder and Council accepted the offer in March 2019. The sale of the property from the City to Brookfield closed on October 1, 2019.

Original Development Agreement Details for Affordable Housing
Council approved the original development agreement (DEV-2019-288-AG2) in July 2019 via Resolution 2019-18. The development agreement identifies the following affordable housing requirements:

The Developer will provide five (10% of 50 units) permanently affordable housing units to households earning up to 100% AMI.
Developer must finance the cost of construction for the affordable units
Affordable units shall be comparable in construction quality and exterior design to the market rate units
Developer will work to ensure the units are dispersed throughout the project
Each unit shall be priced a minimum of 20% less than fair market value per square foot of comparable units, with qualified buyers spending no more than 30% of monthly income on mortgage payments.
Affordable units shall be two bedrooms
Units shall be constructed and offered for sale within 5 years from the date the property is sold.
City will provide income qualification of homebuyers and education services for qualified buyers.
The City will develop a mutually agreeable deed restriction for the affordable units.

Status of the Affordable Units
The construction process at Woodshire was greatly impacted by the COVID-19 pandemic-era labor challenges, increases to the cost of materials, and delivery delays. The initial affordable sales price was about $275,000, or 20% less than the market rate pricing of +$330,000. The affordable sales prices increased by roughly $100,000 since the initial units were offered for sale in 2020. The current pricing on the affordable units is $368,000.
The latest challenge has been rising interest rates and the cost that adds to a monthly housing payment. The DA currently restricts the housing payment to 30% of the eligible buyer's monthly household income with no exceptions.
Of the five required affordable ownership units, only one has been built and sold to date. Housing staff have seen fairly consistent interest in the affordable units from eligible buyers since 2020, but the ability of eligible buyers to enter into a successful purchase contract has been hampered by the issues discussed above. Two purchase contracts for affordable units were secured between 2021 and 2022. The first purchase contract withdrew due to construction delays and rising interest rates. The second purchase contract did close escrow in September 2023. There have been no new purchase contracts since May 2022. Since Brookfield partnered with Da Vinci Realty to list the remaining four units on the multiple listing service (MLS) in February 2024, there has been an uptick in inquiries about the affordable units.

DA Amendment Proposals
In September 2023 City staff received Brookfield's initial proposed amendment, which was an in-lieu payment of $25k per undelivered unit, totaling $100K. Staff rejected the offer and proposed a new amount based on the price differential of the market rate units and the required 20% less than fair market pricing for the affordable units.
Typical Market Rate price (per Zillow listing): $460,000
Required Price Differential = 460K x.2 = 92,000
Affordable sales price = 460,000 – 92,000 = $368,000
Price differential of 92,000 x 4 unsold units = $368,000

Brookfield did not agree with the $368K in-lieu fee amount and began coordinating with DaVinci Realty company in January 2024 to get the remaining unsold units listed (both market rate and affordable).
Brookfield proposed in February 2024 to reduce the sales price of two of the four remaining affordable homes to $275,000 and allow the other two units to be sold at market rate. Staff rejected this offer.
Brookfield then proposed to increase the purchasing power of the eligible buyers from 100% to 125% AMI. For reference, the 2024 125% AMI limit for a household of 4 is $135,750, up from $108,600 (100% AMI). Staff agreed to this increase if the current sales price of $368,0000 is held until the remaining affordable units have sold. Staff also suggested greater flexibility on the maximum housing ratios on future purchase contracts and two one-year extensions to complete the remaining sales.

Connection to PBB Priorities and Objectives:

Livable Community by actively supporting attainable and affordable housing through the City's 10-Year Housing plan as well as other projects and opportunities. Create 1: Incentivize the creation of affordable units through various programs and mechanisms.

Connection to Regional Plan:

Regional Plan
Goal NH.3. Make available a variety of housing types at different price points, to provide housing opportunity for all economic sectors.

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Attachments:

Res. 2024-31

Ex. A - First Amendment to DA

Presentation

Original Development Agreement

Public Comments

12.F.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Stacy Saltzburg, City Clerk

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-28 by title only
City Clerk reads Resolution No. 2024-28 by title only (if approved above)
Adopt Resolution No. 2024-28

Executive Summary:

The City Council gave direction on January 19, 2023 and May 16, 2024 to advance two ballot questions; one related to the renewal of the 2% BBB Tax, and the other to increase and continue the existing Public Transit Transaction Privilege Tax (Sales Tax).

Financial Impact:

Project Name: 2024 General Election
Cost: Approximately $150,000
Account Number Budgeted: 001-01-017-0016-1-4290
FY Budgeted Amount: $300,000
Funding Source: General Fund

Policy Impact:

None

Previous Council Decision or Community Discussion:

The City Council gave direction on January 19, 2023 to advance the BBB renewal and on May 16, 2024 Council gave direction to advance the Transit Tax question.

Options and Alternatives to Recommended Action:

Not advance the questions to the November 5, 2024 election.

Connection to PBB Priorities and Objectives:

High Performing Governance
Safe & Healthy Community
Inclusive & Engaged Community
Sustainable, Innovative Infrastructure
Robust Resilient Economy
Livable Community
Environmental Stewardship

Connection to Regional Plan:

Goal CC.5. Support and promote art, science, and education resources for all to experience.
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 greenways to support the natural environment that sustains our quality of life, cultural heritage, and ecosystem health.
Goal T.1. Improve mobility and access throughout the region.
Goal T.5. Increase the availability and use of pedestrian infrastructure, including FUTS, as a critical element of a safe and livable community.
Goal T.7. Provide a high-quality, safe, convenient, accessible public transportation system, where feasible, to serve as an attractive alternative to single-occupant vehicles.
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:

None

Connection to 10-Year Housing Plan:

None

Attachments:

Res. 2024-28

Exhibit A and B

12.G.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Stacy Saltzburg, City Clerk

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE:

STAFF RECOMMENDED ACTION:

Read Resolution No. 2024-29 by title only
City Clerk reads Resolution No. 2024-29 by title only (if approved above)
Adopt Resolution No. 2024-29

Executive Summary:

With the exception of Phoenix and Tucson, who perform their own elections, municipalities across the state contract for the operation of their elections, primarily with their respective counties. While the City is responsible for many of the election activities such as preparation of the resolution, ballot language, public notices, and Information Pamphlet, the County prepares the ballot (with approval by the City), and both mails out and receives the ballots, as well as counts the ballots on election day. The attached Intergovernmental Agreement (IGA) outlines the roles of the City and County in this year's City election which will be held in conjunction with the statewide election.

Financial Impact:

Project Name: 2024 Election
Cost: $2.00 per registered voter (~$100,000)
Account Number Budgeted: 001-01-017-0016-1-4290
FY Budgeted Amount: $300,000
Funding Source: General Fund

Additional expenses will be incurred with Runbeck Election Services and English Spanish Translation Services, LLC for the compilation, translation, and mailing of the associated Information Pamphlet as well as the notification postcards.

Policy Impact:

None

Previous Council Decision or Community Discussion:

None

Options and Alternatives to Recommended Action:

Not approve the IGA

Connection to PBB Priorities and Objectives:

High Performing Governance
Inclusive and Engaged Community

Connection to Regional Plan:

None

Connection to Carbon Neutrality Plan:

None

Connection to 10-Year Housing Plan:

None

Attachments:

Res. 2024-29

IGA

13.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:

The Honorable Mayor and Council

From:

Jenny Niemann, Climate Section Director

Co-Submitter:

Danae Presler

Date:

06/12/2024

Meeting Date:

06/18/2024

TITLE

Carbon Neutrality Plan Biannual Progress Report

STAFF RECOMMENDED ACTION:

This item is for discussion only.

Executive Summary:

Staff will provide an informational update to highlight efforts over the past six months to advance the Flagstaff Carbon Neutrality Plan (CNP), as part of our regular 6-month update schedule. This presentation will detail the CIty's progress against the CNP goals and greenhouse gas mitigation targets.

Information:

The informational update will cover the following sections:

Background: Review of CNP target areas and goals.
Foundations: Actions the Sustainability Division is taking to build community capacity and lay the foundations for climate action.
Community Greenhouse Gas Emissions: Presentation of the City's greenhouse gas emissions inventory
Progress Updates by Sector
- Renewable Energy
- Building Energy Use
- Electric Mobility
- Active Transportation
Beyond GHG Emissions: High-level review of resilience and equity actions, which do not focus on greenhouse gas emissions reductions, but are often combined with mitigation actions that reduce emissions.
Next steps

Attachments:

Presentation