Agenda

1.

CALL TO ORDER

Mayor Evans called the meeting of the Flagstaff City Council held April 4, 2017, to order at 4:30 p.m.

NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION

Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that, at this regular meeting, the City Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the City’s attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).

2.

ROLL CALL

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

PRESENT:

MAYOR EVANS
VICE MAYOR WHELAN
COUNCILMEMBER BAROTZ
COUNCILMEMBER MCCARTHY
COUNCILMEMBER ODEGAARD
COUNCILMEMBER OVERTON
COUNCILMEMBER PUTZOVA

ABSENT:

NONE

Others present: City Manager Josh Copley and City Attorney Sterling Solomon.

3.

PLEDGE OF ALLEGIANCE AND MISSION STATEMENT

Councilmember McCarthy led the audience and Council in the Pledge of Allegiance, and Councilmember Overton read the Mission Statement of the City of Flagstaff.

MISSION STATEMENT

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

4.

APPROVAL OF MINUTES FROM PREVIOUS MEETINGS

None

5.

PUBLIC PARTICIPATION

Public Participation enables the public to address the Council about an item that is not on the agenda. Comments relating to items that are on the agenda will be taken at the time that the item is discussed. If you wish to address the Council at tonight'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 Public Participation. 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.

None

6.

PROCLAMATIONS AND RECOGNITIONS

None

7.

APPOINTMENTS

Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that the City Council may vote to go into executive session, which will not be open to the public, for the purpose of discussing or considering employment, assignment, appointment, promotion, demotion, dismissal, salaries, disciplining or resignation of a public officer, appointee, or employee of any public body...., pursuant to A.R.S. §38-431.03(A)(1).

None

8.

LIQUOR LICENSE PUBLIC HEARINGS

None

9.

CONSENT ITEMS

All matters under Consent Agenda are considered by the City Council to be routine and will be enacted by one motion approving the recommendations listed on the agenda. Unless otherwise indicated, expenditures approved by Council are budgeted items.

A.

Consideration and Approval of Grant Application and Acceptance upon Award: Arizona Governor's Office of Highway Safety (GOHS) Federal Fiscal Year 2018 for Police Department Applications grant funding for DUI Task Force, Youth Alcohol Prevention and Interdiction, Reflective Traffic Cones, Privacy Security Barrier, and Patrol Motorcycle.

Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to approve Consent Agenda Item 9-A, (approve the application(s) and acceptance of an award to the Arizona Governor's Office of Highway Safety (GOHS) for grant funds for the Police Department in the amount of $56,550 for DUI Task Force Activities, $55,200 for Youth Alcohol Prevention and Interdiction task force, $4,466 for Reflective Traffic cones, $5,635.33 for a Privacy Security Screen Barrier, and $29,416.40 for a Harley Davidson Motorcycle.)

Vote: 7 - 0 - Unanimously

B.

Consideration and Approval of Construction Contract: With Mountain High Excavating, LLC (Contractor) in the amount of $634,902.00 for the Brannen-Paseo Del Rio Safety Improvements Project (Project).

Vice Mayor Whelan said that she needs some clarification between the wording "contract allowance" and "change order allowance."

Project Manager Randy Whitaker said that the contract allowance allows for changes that may be needed as they get into a project. He said that the change order authorize is something found on all contracts to cover things that may be out of the ordinary.

Councilmember McCarthy asked if there was any community outreach with the project. Mr. Whitaker said that they did have an open house with very little attendance and talked with the Housing Authority representatives as a large amount of the area is residential.

Mr. Whitaker said that there was not a traffic study done, but they worked with the traffic division re crashes in the area. He said that there are no sidewalks and this project includes street lighting, ADA ramps, improvements the FUTS trail parking and on the west side of Lonetree it straightens out the FUTS trail issues. He said that they are reconfiguring the intersection, but this started through the Housing Authority requesting more access for pedestrians.

Mr. Copley said that as they get moving through the process and get it on the ground they will do an extensive outreach to the community, with plenty of opportunity for the public to be aware of the project.

Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to approve the construction contract with the Contractor in the amount of $634,902.00 (this figure includes a $50,000 contract allowance) and a contract time of 180 calendar days; approve Change Order Authority to the City Manager in the amount of $58,490.20 (10% of contract amount, less allowance); and authorize the City Manager to execute the necessary documents.

Vote: 7 - 0 - Unanimously

C.

Consideration and Approval of Contract: Approve the construction contract with McDonald Brothers Construction, Inc. (Contractor) in the amount of $1,294,248.28 for the Grand Canyon Waterline Improvement Project (Project).

Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to approve the construction contract with the Contractor in the amount of $1,294,248.28, and a contract time of 150 calendar days; approve Change Order Authority to the City Manager in the amount of $123,000.00 (10% of the contract amount, less allowances); and authorize the City Manager to execute the necessary documents.

Vice Mayor Whelan said that she had the same points related to this item, and perhaps it needs to be a Future Agendan Item Request (FAIR). She said that it seems like they put in a lot of money for "what ifs".

Councilmember Overton said that perhaps it was a procurement procedure. He said that going back in time for the last 8-10 projects, perhaps they could look at where they have used contract allowance and change order authority. Mr. Copley said that they could start with a CCR (Council Communication Report) and then proceed to a FAIR if more discussion was needed.

Vote: 7 - 0 - Unanimously

D.

Consideration and Approval of Cooperative Contract: Approve the purchase to replace existing playground equipment with new adaptive playground equipment and surfacing at Thorpe Park in the amount of $166,738.63 utilizing The Cooperative Purchasing Network (TCPN), Cooperative Contract #R5202, with Landscape Structures, Inc. (The local service organization office is Exerplay, Inc. of Cedar Crest, New Mexico.)

Moved by Councilmember Charlie Odegaard, seconded by Vice Mayor Jamie Whelan to approve the purchase to replace existing playground equipment with adaptive playground equipment and surfacing at Thorpe Park in the amount of $166,738.63 utilizing The Cooperative Purchasing Network (TCPN), Cooperative Contract #R5202 with Landscape Structures, Inc. (The local service organization office is Exerplay, Inc. of Cedar Crest, New Mexico.)

Councilmember Odegaard asked what happened with the old playground equipment. Parks Manager Steve Zimmerman said that their intent is to salvage it. It is one of their older pieces of equipment so they would like to keep it for replacement parts as it is hard to secure replacement parts for older equipment. At other times, they will sell it at auction.

Vote: 7 - 0 - Unanimously

E.

Consideration and Approval of Contract: Approve the Construction Contract with Standard Construction Company, Inc. in the amount of $1,171,900.50 for the Brannen Phase II Water and Sewer Improvement Project (Project).

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Scott Overton to approve the construction contract with Standard Construction Company, Inc. in the amount of $1,171,900.50, and a contract time of 180 calendar days; approve Change Order Authority to the City Manager in the amount of $112,000.00 (10% of the contract amount, less allowance of $53,000); and authorize the City Manager to execute the necessary documents.

Vice Mayor Whelan said that in the various contracts signed by the City there is a line that references "boycott of Israel" and asked for clarification. Mr. Solomon said that this is a state law and is required to be in all contracts. Councilmember Barotz asked for the citation regarding that requirement.

Vote: 7 - 0 - Unanimously

10.

ROUTINE ITEMS

A.

Consideration and Approval of: Second Amendment to the Business Accelerator and Business Incubator Master Leases (Amending Tax Rate Listed In Sublease Agreements with Northern Arizona Center for Entrepreneurship and Technology (NACET))

Administrative Specialist Creag Znetko came forward to answer any questions.

Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to approve the amendment of the existing sublease agreements NACET uses with sublessees.

Vote: 7 - 0 - Unanimously

B.

Consideration and Adoption of Ordinance No. 2017-06: An ordinance of the City Council of the City of Flagstaff, Arizona, extending and increasing the corporate limits of the City of Flagstaff, Coconino County, State of Arizona, pursuant to the provisions of Title 9, Chapter 4, Arizona Revised Statures, by annexing certain land totaling approximately 20 acres located in Section 33, Township 22 North, Range 7 East, which land is contiguous to the existing corporate limits of the City of Flagstaff, and establishing city zoning for said land as Rural Residential (RR) for 20 acres; providing for severability, authority for clerical corrections, and establishing an effective date.

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Jim McCarthy to read Ordinance No. 2017-06 by title only for the final time.

Vote: 7 - 0 - Unanimously

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, ARIZONA, EXTENDING AND INCREASING THE CORPORATE LIMITS OF THE CITY OF FLAGSTAFF, COCONINO COUNTY, STATE OF ARIZONA, PURSUANT TO THE PROVISIONS OF TITLE 9, CHAPTER 4, ARIZONA REVISED STATUTES, BY ANNEXING CERTAIN LAND TOTALING APPROXIMATELY 20 ACRES LOCATED IN SECTION 33, TOWNSHIP 22 NORTH, RANGE 7 EAST, WHICH LAND IS CONTIGUOUS TO THE EXISTING CORPORATE LIMITS OF THE CITY OF FLAGSTAFF, AND ESTABLISHING CITY ZONING FOR SAID LAND AS RURAL RESIDENTIAL (RR); PROVIDING FOR SEVERABILITY, AUTHORITY FOR CLERICAL CORRECTIONS, AND ESTABLISHING AN EFFECTIVE DATE

Moved by Councilmember Jim McCarthy, seconded by Councilmember Charlie Odegaard to adopt Ordinance No. 2017-06.

Vote: 7 - 0 - Unanimously

C.

Consideration and Adoption of Ordinance No. 2017-07: An ordinance of the City Council of the City of Flagstaff, amending the Flagstaff Zoning Map to rezone approximately 20 acres of real property located at 3620 W Schultz Pass Road, from Rural Residential ("RR") to Public Open Space ("POS") and to apply the Landmark Overlay ("LO"), and the Resource Protection Overlay ("RPO") with the Rural Floodplain Designation; providing for severability, and establishing an effective date.

Moved by Councilmember Charlie Odegaard, seconded by Vice Mayor Jamie Whelan to read Ordinance No. 2017-07 by title only for the final time.

Vote: 7 - 0 - Unanimously

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, AMENDING THE FLAGSTAFF ZONING MAP TO REZONE APPROXIMATELY 20 ACRES OF REAL PROPERTY LOCATED AT 3620 W SCHULTZ PASS ROAD, FROM RURAL RESIDENTIAL (“RR”) TO PUBLIC OPEN SPACE (“POS”) AND TO APPLY THE LANDMARK OVERLAY (“LO”), THE RESOURCE PROTECTION OVERLAY (“RPO”) WITH THE RURAL FLOODPLAIN DESIGNATION TO APPROXIMATELY 20 ACRES; PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE

Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to adopt Ordinance No. 2017-07.

Vote: 7 - 0 - Unanimously

D.

Consideration and adoption of Ordinance No. 2017-09: An Ordinance of the Flagstaff City Council adopting an amendment to the 2012 International Fire Code Appendix D Section 107.1 One or Two Family Residential Developments Secondary Access Requirements (This an exception update)

Moved by Councilmember Eva Putzova, seconded by Councilmember Jim McCarthy to read Ordinance No. 2017-09 by title only for the final time.

Vote: 7 - 0 - Unanimously

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, ARIZONA, AMENDING APPENDIX D OF THE 2012 INTERNATIONAL FIRE CODE ADOPTED BY ORDINANCE ON OCTOBER 4, 2016; PROVIDING FOR AUTHORITY FOR CLERICAL CORRECTIONS, AND ESTABLISHING AN EFFECTIVE DATE

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Jim McCarthy to adopt Ordinance No. 2017-09.

Vote: 7 - 0 - Unanimously

E.

Consideration and Adoption of Ordinance No. 2017-11: An ordinance of the Council of the City of Flagstaff, Coconino County, Arizona (1) providing for the sale and execution and delivery pursuant to a Series 2017 Utility System Revenue Trust Agreement of Utility System Revenue Refunding Obligations, in one or more series evidencing proportionate interests of the owners thereof in installment payments of the purchase price to be paid by the City of Flagstaff, Arizona, pursuant to a Series 2017 Utility System Revenue Purchase Agreement to refinance certain costs of certain improvements to the water and sewer utility system of the City; (2) authorizing the completion, execution and delivery with respect thereto of agreements necessary or appropriate as part of refinancing such costs of such improvements to the water and sewer utility system of the City and paying related financing costs; (3) delegating to the Mayor, the City Manager and the Management Services Director certain authority with respect to the purposes hereof; (4) authorizing the Management Services Director to expend all necessary funds therefor; and (5) authorizing the Management Services Director or his designees to take all other actions necessary to the consummation of the transaction contemplated by this ordinance and establishing an effective date.

Management Services Director Rick Tadder gave a brief PowerPoint presentation which addressed:

DEBT REFINANCE PROCESS

Mr. Tadder said that they meet with their advisors and bond counsel to see if they could get less expenses related to their bond issues. They have looked at three issuances related to the Water Improvement Finance Authority (WIFA) bonds for water and wastewater debts. Once this is approved, staff will send out an RFP (Request for Proposals) in accordance with bond counsel and the financial advisors, along with procurement staff. They will send it to prospective banks after final adoption of the ordinance. They will then analyze responses as a team, including the advisors, staff and counsel.

They will make decisions on which issuances to be refinanced, or they may only decide on a few.

DEBT REFINANCE WIFA LOANS

2003     $2.16 Million    3.580%    Water
2006      $4.15 Million    3.280%    Water
2007    $14.00 Million    3.512%    Wastewater

Mr. Tadder said that the final results will vary based on the interest rates on the bids, which loans are refinanced, the market conditions, and potential savings from $250,000 to $750,000. These services will cost the City about $75,000.

Vice Mayor Whelan said that she would like to better understand when the financial advisor is used and when the bond counsel is used.

Mr. Tadder explained that the City signed a new contract about a year ago with the financial advisor and they have been looking at the City's portfolio. They understand the call provisions and structure for refinance. They did that initial analysis to bring this to his attention. They presented it, and they had a conversation, and then they have a meeting with bond counsel as well who is looking at existing loans to ensure they are eligible. At that point, they are working as a team and the bond counsel is involved with the legal documentation. He said that they will both be part of the RFP process as well, making sure that the City does the right due diligence in making the right decision. The bond counsel is there for all processes.

Mr. Tadder said that the financial advisor contract is for when they do issuance of debt. They do other pro forma with the City as well throughout the year to help them plan, and to manage the secondary property tax. They only bill the City when bonds are issued and both the financial advisors and bond counsel operate in that manner.

Councilmember Barotz asked what the percentage is that the bond counsel gets when they close a deal. Mr. Tadder said that their contract has two tiers. For items under $10 million the fee is $40,000 per issuance; over $10 million it is another fee.

Councilmember Odegaard said that he assumed they have done this before and asked when the last time was and how many there were. Mr. Tadder said that he believed they refinanced debt in 2008, and they issued new debt last year. He does not recall specifics on the refinancing, but he would get that information for Council.

Vice Mayor Whelan asked if there is any risk to the City. Mr. Tadder said that he did not see much risk in this. After they go through the RFP process they will still have a choice of saying no.

Councilmember Barotz asked how much they pay the financial advisors. Mr. Tadder said that he did not have their fee schedule in front of him, but it is based on types of debt--general obligation versus revenue versus refinancing, and then it is based on the amount of debt. He said that he could also provide that information.

Moved by Councilmember Jim McCarthy, seconded by Councilmember Charlie Odegaard to read Ordinance No. 2017-11 by title only for the first time.

Vote: 7 - 0 - Unanimously

AN ORDINANCE OF THE COUNCIL OF THE CITY OF FLAGSTAFF, COCONINO COUNTY, ARIZONA (1) PROVIDING FOR THE SALE AND EXECUTION AND DELIVERY PURSUANT TO A SERIES 2017 UTILITY SYSTEM REVENUE TRUST AGREEMENT OF UTILITY SYSTEM REVENUE REFUNDING OBLIGATIONS, IN ONE OR MORE SERIES EVIDENCING PROPORTIONATE INTERESTS OF THE OWNERS THEREOF IN INSTALLMENT PAYMENTS OF THE PURCHASE PRICE TO BE PAID BY THE CITY OF FLAGSTAFF, ARIZONA, PURSUANT TO A SERIES 2017 UTILITY SYSTEM REVENUE PURCHASE AGREEMENT TO REFINANCE CERTAIN COSTS OF CERTAIN IMPROVEMENTS TO THE WATER AND SEWER UTILITY SYSTEM OF THE CITY; (2) AUTHORIZING THE COMPLETION, EXECUTION AND DELIVERY WITH RESPECT THERETO OF AGREEMENTS NECESSARY OR APPROPRIATE AS PART OF REFINANCING SUCH COSTS OF SUCH IMPROVEMENTS TO THE WATER AND SEWER UTILITY SYSTEM OF THE CITY AND PAYING RELATED FINANCING COSTS; (3) DELEGATING TO THE MAYOR, THE CITY MANAGER AND THE MANAGEMENT SERVICES DIRECTOR CERTAIN AUTHORITY WITH RESPECT TO THE PURPOSES HEREOF; (4) AUTHORIZING THE MANAGEMENT SERVICES DIRECTOR TO EXPEND ALL NECESSARY FUNDS THEREFOR AND (5) AUTHORIZING THE MANAGEMENT SERVICE DIRECTOR OR HIS DESIGNEES TO TAKE ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS ORDINANCE AND ESTABLISHING AN EFFECTIVE DATE

F.

Consideration: Rescheduling of the July 4, 2017, Regularly-Scheduled Council Meeting.

Moved by Councilmember Jim McCarthy, seconded by Councilmember Eva Putzova to reschedule the July 4, 2017, Council Meeting to July 3, 2017.

Vice Mayor Whelan said that it would also meet their needs to meet on July 5, and then it would not be in the middle of the holiday weekend.

Councilmember McCarthy then withdrew his motion; later in the meeting Councilmember Putzova withdrew her second.

Moved by Vice Mayor Jamie Whelan, seconded by Councilmember Jim McCarthy to reschedule the July 4, 2017, Council Meeting to July 5, 2017.

Vote: 7 - 0 - Unanimously

RECESS

The 4:30 p.m. portion of the Regular Meeting of the Flagstaff City Council held April 4, 2017, recessed at 5:14 p.m.

6:00 P.M. MEETING

RECONVENE

Mayor Evans reconvened the Regular Meeting of the Flagstaff City Council of April 4, 2017, at 6:02 p.m. and then stated that the meeting would be recessed until 6:30 p.m. This was to allow anyone wishing to attend the Public Hearing scheduled for this evening who may have gone to the City Hall address to arrive in time at the new location.

Mayor Evans reconvened the Regular Meeting at 6:30 p.m. at which time the motion for Item 10-F (above) was taken.

NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION

Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that, at this regular meeting, the City Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the City’s attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).

11.

ROLL CALL

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

PRESENT:

MAYOR EVANS
VICE MAYOR WHELAN
COUNCILMEMBER BAROTZ
COUNCILMEMBER MCCARTHY
COUNCILMEMBER ODEGAARD (arrived at 6:30 p.m.)
COUNCILMEMBER OVERTON
COUNCILMEMBER PUTZOVA

ABSENT:

NONE

12.

PUBLIC PARTICIPATION

The following individuals addressed Council encouraging the restriction of smoking at City parks:

Tracy Keyani, Senior, President of Arizona Students Aiming for Prevention
Hunter Owens, Sophomore, Vice President of Coconino Anti Tobacco Students

Andy Fernandez, Flagstaff, addressed the Council regarding concerns with transparency and his constitutional rights.

13.

CARRY OVER ITEMS FROM THE 4:30 P.M. AGENDA

14.

PUBLIC HEARING ITEMS

A.

Consideration and Adoption of Ordinance No. 2017-10: An ordinance of the City Council of the City of Flagstaff, amending the Flagstaff City Code, Title 10, Zoning Code, providing for repeal of conflicting ordinances, severability, and establishing an effective date.

Charlie Silver, Flagstaff, addressed the Council with concerns that staff was proposing a change in the side yard setbacks.

Zoning Code Manager Brian Kulina reviewed the recommendations from two weeks ago, plus the recommendations of the Planning and Zoning Commission who had held their meeting on building placement.

PROPOSED AMENDMENTS
LOT WIDTH
RURAL FLOODPLAIN MAP
BUILDING PLACEMENT

Mr. Kulina said that the Planning and Zoning Commission's recommendations are to move forward with the proposed changes, but leave the side yard setback at 15' and do nothing with the building placement. He said that if the Council agreed with those recommendations, no further changes were needed as what is presented includes those changes.

Vice Mayor Whelan asked if any of the options presented prioritize their neighborhoods and those that live in them. Mr. Kulina said that the problem with trying to address that is that they have different neighborhoods that have the same zoning, and the same zoning has to be treated the same. He said that they have always encouraged neighborhoods to come in for a rezone, or a Landmark Overlay. He said that they met with two neighborhoods and their next step is to apply to the Historic Preservation Commission.

Vice Mayor Whelan said that those that have come in seem to be knowledgeable on what is needed, but she is concerned with those that are not that knowledgeable, such as those on the southside. She would like to hear ideas on how to move forward in their town with character in mind. Mr. Kulina said that the challenge is trying to incorporate character challenges into a regulatory standard like a setback. The only way to do that is to rezone it or an overlay, or to create its own stand-along zone. He said that any of those options have legal risks if it is initiated by the City.

Councilmember McCarthy said that he believes that the recommendation from the Commission on setbacks is what they should follow, although he understands it was not a unanimous vote. He said that the very purpose of zoning codes is to keep compatible uses together and to prevent incompatible uses from bweing next to each other. A lot of the people feel strongly and he would not support the Council taking an action that will facilitate commercialization at the expense of protecting a residential neighborhood.

Mayor Evans said that the commercial that currently exists in the neighborhood, that is long standing, is very different than the commercial now being proposed. The newer commercial trying to be injected is at a much larger and taller scale; out of character with the existing neighborhood.

Vice Mayor Whelan said that a lot of what they are considering is infill which is very important. She asked how they do that with respect to the character and the neighborhood. That is the way she would like to see the City go. She looks around and sees all of the brick, but their character is about stone.

Mr. Kulina noted that the architectural standards in the Zoning Code are some of the most stringent in the state. He said that staff recognizes those areas and they are getting into land use law and that is where they need to have that conversation.

Joan Martini, Flagstaff, said that the discussion was refreshing. She is in a neighborhood that is trying to propose a Landmark Overlay Zone.

Mayor Evans closed the Public Hearing at this time.

Mr. Kulina noted that there were minor corrections presented as well.

Moved by Councilmember Jim McCarthy, seconded by Councilmember Charlie Odegaard to read Ordinance No. 2017-10 by title only for the final time, with the minor corrections made.

Vote: 7 - 0 - Unanimously

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, AMENDING THE FLAGSTAFF CITY CODE, TITLE 10, THE CITY OF FLAGSTAFF ZONING CODE, PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES, SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE

Moved by Councilmember Jim McCarthy, seconded by Councilmember Charlie Odegaard to adopt Ordinance No. 2017-10.

Vote: 7 - 0 - Unanimously

B.

Public Hearing, Consideration and Adoption of Ordinance No. 2017-04, Resolution No. 2017-11: An ordinance of the Flagstaff City Council amending the Flagstaff City Code, Title 3, Business Regulations, Chapter 3-09, Cable, by making amendments relating to regulation of cable operators, providing for penalties, repeal of conflicting ordinances, severability, and establishing an effective date; and a resolution of the Flagstaff City Council authorizing renewal of a Cable License Agreement with NPG Cable, LLC, doing business as Suddenlink, and establishing an effective date (cable ordinance updates, renewal of cable license agreement)

Senior Assistant City Attorney Anja Wendel said that the Council had a Work Session scheduled last week on which this was an item, but it had to be canceled. She then introduced Jeff Kelly, Suddenlink Communications Manager.

Mayor Evans opened the Public Hearing.

Mr. Kelley said that he is a lifelong resident of Flagstaff, and he then gave a brief history of Suddenlink in the community. He said that their agreement expired on December 31, 2016, but they have been operating through August 31 of this year under an extension of that agreement. He said that they would like to continue to do business in Flagstaff, providing accessibility to more than 44,000 homes and businesses.

Councilmember Barotz said that when this issue came forward the Council received an e-mail from an individual who said that included within the additional charges on his bill was a $10 for broadcast station surcharge. He believed that since it was a surcharge, he should be able to opt out. Mr. Kelley explained that Suddenlink is charged for the broadcast stations coming in primarily from Phoenix and that is then passed through on the bill.

Councilmember Barotz asked if their subscription rate has increased or decreased since they enhanced the technologies. Mr. Kelly said that it is continually increasing. Even within the national footprint, in 20 different states they have seen an 8% year over year growth. He said that on the video side, the trend industry wide is a decreased, but they have seen an increase there as well. He noted that they are adding about 70 new channels in May.

Vice Mayor Whelan said that she just received her bill and is being charged for the sports surcharge, and she asked why. Mr. Kelly suggested that she come into the local office and sit down with one of their representatives to walk through her bill so they can explain the differences.

Vice Mayor Whelan asked for clarification of the "pass through" charges. She said that she has heard it with other large corporations. She owns a small restaurant and they do not pass through things like that, but it seems to be common place. Mr. Kelley said that his wife is a photographer and she has fees from the printer that she passes through to her customers. Not every business model has it, but many do use that model.

Councilmember Putzova asked if it was only the sports and broadcast channels that charge. Mr. Kelley said that they are charged for every content that they provide. The sports and broadcast channels are higher costs and they call it a surcharge, so that is why they felt it was clear and transparent to show them individually.

Vice Mayor Whelan said that looking over the information given there are a few things that come to mind. It looks as though because of a new definition of gross revenues they will be paying the City $51,000 less each year. As the City shifts to more internet service, their revenues will be going down. She asked why they would sign another 10-15 year contract if the City is going to be providing and maintaining those rights of way and the revenues are going down.

Ms. Wendel noted that Suddenlink does have a legal right to use the public rights of way if they meet the qualifications. She said that they do have a PowerPoint presentation to go through with the substantive terms, which does address the fee.

Mr. Kelley replied, in response to the prior questions, that shortly after they signed the last franchise agreement there was a state law passed that reduced that fee. Since 2007 they have not been paying the reduced state fee. Yes, the trend is going more toward streaming, but they have seen growth in the Flagstaff area. He believed that the federal government felt that it was information technology that they wanted to make available as much as possible.

Ms. Wendel reviewed a PowerPoint Presentation which addressed:

CABLE TELEVISION LICENSE
Gross Revenues
License Term
License Fee
Bundling Fee Review

Ms. Wendel referenced Section 4, stating that it was a state law requirement. She said that there is also a bill pending, SB2419, which is coordinated with HB2635, which extends additional rights to operators on poles. She said that have asked City Engineer Rick Barrett to read through that bill tonight, and they would likely be asking Council to move forward with renewal of the license on April 18, and then come back with any amendments that would be appropriate per state law.

Discussion was held on the emergency alert aspect of the contract. While the City has never used that, staff was asked to see if it was feasible. Mr. Kelly said that it is a FCC requirement, as well as a franchise requirement, that they monitor local radio stations and if any emergency notice is sent out, they pick it up and broadcast so that the message is unified. He said that is how they have done it with all of the systems in Arizona. He said that they can look at whether the City wanted to initiate that emergency alert. Ms. Wendel said that she would check with Chiefs Treadway (Police) and Gaillard (Fire) to see if they had an interest in this. She will bring this back to the April 18 meeting.

With regard to Section 5.10, line extensions, Mr. Kelley said that they are currently at 150 feet; if they go over that it would be at the cost of the subscriber. This proposed wording would change that to 250 feet. He said that it applied to both residential and commercial customers, unless it was advanced fiber services, which requires additional costs.

Councilmember Barotz asked if she understood correctly a statement made earlier that if they met all of the requirements, the City would have to approve the franchise. Ms. Wendel said that was correct.

Ms. Wendel said, with regard to the Public/Education/Government section, that she spoke with Mr. Vagen about this and while he was not interested in using it at this time due to the significant expense and the fact that the City currently broadcasts over the internet, he would want to keep the option open for the future. Suddenlink has asked the City to consider reducing it from five channels to four channels and to do away with the scrambled option. She said that the Police Department stated that they did not need it, but the Fire Chief is still considering whether he would like to keep it an option.

Councilmember Putzova asked if it was common to allow the operator to shorten the term. Ms. Wendel said that Suddenlink had asked to keep it in so that if another cable operator wished to operate in the City with more favorable terms, they would to have the ability to reopen discussions with the City. She said that it is not a common clause; she was not sure if it is common to Suddenlink licenses.

Councilmember Barotz said that the content of the paragraph is not consistent with the heading. She asked what the real reason was for this clause. Ms. Wendel said that it is a meet and discuss, and possibly negotiate a new contract, clause. The intent of the clause is to keep agreements fair. Councilmember Barotz said that she appreciates that, but if it is going to stay then she would like the heading to be changed. Ms. Wendel said that they would look into that further.

Councilmember Odegaard said that it references a review process or audit process. He asked how often that happens. Ms. Wendel said that the City has the right to audit whenever it wishes. Two years ago staff did a desk audit, looking ahead to the license renewal. She said that as a financial business practice it is up to the City as to when it wishes to audit, not just cable, but other utilities as well.

Vice Mayor Whelan said that it seems that the state has taken power away from the cities to regulate the companies doing business in them.

Councilmember Barotz asked that staff provide a short document that includes the flags that they have not confirmed yes or no on. Ms. Wendel also noted that they have a draft ordinance to amend the Cable Code with the City's Code.

Moved by Councilmember Scott Overton, seconded by Councilmember Eva Putzova to read Ordinance No. 2017-04 by title only for the first time, and continue the Public Hearing to April 18, 2017.

Vote: 7 - 0 - Unanimously

AN ORDINANCE OF THE FLAGSTAFF CITY COUNCIL, AMENDING THE FLAGSTAFF CITY CODE, 3, BUSINESS REGULATIONS, CHAPTER 3-09, CABLE, BY MAKING AMENDMENTS RELATING TO REGULATION OF CABLE OPERATORS; PROVIDING FOR PENALTIES, REPEAL OF CONFLICTING ORDINANCES, SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE

15.

REGULAR AGENDA

A.

Discussion and Possible Direction: Current Issues Before the Arizona Legislature and Federal Issues.

Interim Assistant to the City Manager Gail Jackson came forward and got Richard Travis, state lobbyist, on the telephone for a report.

Mr. Travis said that there were 1,153 bills introduced and so far there have been 135 signed. He said that the committee work is complete; all that remains is floor action and the budget.

He said that there were two municipal identification card bills; one is completely dead and the other passed out of the House and Senate Committee, but has been parked in the Senate Rules for a month, and is most likely dead.

A striker of importance is SB1236 regarding new requirements for circulators and HB2244 re standards for review of ballot initiatives raising it to strict compliance.

He said that the pension reform bill is extremely close to agreement with the League and all interested parties. The GPLET bill, signed by the Governor, is a major change re the length of them from 20 to 8 years, but it is still a tool. He said that the Prosperity Districts bill efforts appear to be dead and the Small Cell Bill re 5G network has been signed.

With regard to gun issues, Mr. Travis said that they tried to change the standard from negligent to recklessness, but that bill stalled. Another bill re the type of shot to be used in urban area, has some trouble, but it is still moving.

Mr. Travis said that a part of the budget deals with the minimum wage issue. There was a request by the providers for individuals with disabilities of $70 million. It looks like the House and Senate are starting to support a $20 - $30 million appropriation for what that industry has paid out with implementation of the new minimum wage in January.

He said that there was a $180 million shift out of the HURF fund into the Department of Public Safety. Senator Worsley attempted to create an income stream for DPS so they wouldn't continue to go after the HURF funds, but that effort failed. However, in the budget negotiations there is some desire to put $30 million of one-time funds back into the HURF fund which is at $100 million.

He said that the other big issue is the university funding proposal. He said that their message has been that they like their universities, but "robbing Peter to pay Paul" is not the answer. He said that it appears to be a strong motivation to do something for the universities.

Mr. Travis said that another issue is the Affordable Care Act which could have a dramatic impact on the State budget. He said that ACCCHS has continued to contact their offices, but until there is a change they will not know the impact.

Councilmember Putzova asked for clarification on the two bills related to the initiative process and whether it applied only to state efforts or if it would also apply to cities and towns. Mr. Travis said that he would look into that further and report back to Gail.

Ms. Jackson noted that they sent out letters last week to all state legislators, the Budget Director and the Governor, voicing their opposition. She said that they heard back From Senator Allen who said that sie did not support the mechanisms.

Ms. Jackson said that on the federal level there are many changes, and they are hoping to have Mr. Holmes call in next week to provide an update on the DC trip. She said that on March 16 President Trump released a blueprint budget which caused many concerns, but Mr. Holmes said that it was strictly a political statement and not to be concerned.

Mayor Evans said that in the past they have had the opportunity to have a breakfast with the state legislators, which usually happened before the session started. Ms. Jackson said that she did reach out to them and at this time she has not had a response, but toward the end of the session they may have more availability.

Mayor Evans said that they previously requested a meeting with the Arizona Board of Regents. She said that they will be in Flagstaff in June and September, and she would like to find out the status of that meeting. Deputy City Manager Shane Dille said that he and Joann Keene with Northern Arizona University have been discussing this, but they do not have a definitive answer to the question. Mayor Evans said that while she appreciates having a discussion with Ms. Keene, she was wondering if there was a reason why they were not speaking directly with the Board of Regents. She said that they are a separate entity ahd have an Executive Director and assistant. She said that the statement was no disrespect toward NAU, but if there is a more direct route to asking for such a meeting she would like to see it taken. Mr. Dille said that he would shift gears and get a response.

Vice Mayor Whelan said that while she believed that they all appreciated their visit to NAU to see what they were doing, she would like to have a work session to discuss the impacts of a larger university population in Flagstaff and how they can best manage those issues.

16.

DISCUSSION ITEMS

None

17.

COUNCIL LIAISON REPORTS

None

18.

FUTURE AGENDA ITEM REQUESTS

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

A.

Future Agenda Item Request (F.A.I.R.): A request by Mayor Evans to place on a future agenda discussion of the placement of For Sale signs at the entrances of mobile home parks and written notification.

Mayor Evans briefly reviewed her request; a consensus of Council was to move this item forward for further discussion.

B.

Future Agenda Item Request (F.A.I.R.): A request by Councilmember Putzova to place on a future agenda discussion of amending the City's investment and procurement policies.

Councilmember Putzova said that they were talking of two different sets of policies. She would like to consider the social responsibility of investments and look at the procurement policy and find a way to move that forward.

Consensus of Council was to move this forward to a future agenda.

19.

INFORMATIONAL ITEMS AND REPORTS FROM COUNCIL AND STAFF, FUTURE AGENDA ITEM REQUESTS

Councilmember Odegaard asked for a future agenda item request (F.A.I.R.), due to the group of kids attending the meeting this evening, to consider an ordinance for tobacco-free city parks and other facilities.

Councilmember Odegaard said that he was pleased with how the audience interacted at the recent Arizona Corporation Commission meeting. It was nice to see the public come forward to make their point while also being respectful.

He attended the Arizona Democratic Town Hall Meeting, which was also attended by Vice Mayor Whelan, and he talked with one of the legislators about the Arizona Board of Regents bill and they said that they would not be in favor of it.

Councilmember Odegaard voiced concerns with having to pay sales tax through the state now, rather than through the City, and it was not a good transition. He would like a F.A.I.R. to see the City make a proactive statement regarding the change.

He also attended the Grappling with Gridlock which was well attended. He thought there would be some future project happening to help alleviate 180 traffic.

He also thanked John Santonstall for the Joy Cone tour and noted that he and the Mayor attended the Coalition for Children and Youth meeting. He also attended the Introduction to Wildfire Summit which was held in Flagstaff and had around 200 people from all over Arizona.

Councilmember McCarthy said that he had attended three meetings, but they had already been covered.

Councilmember Barotz requested a CCR in response to the e-mail sent to the Mayor/Council from Ann Hart regarding the use of property for staging in developments.

Councilmember Barotz said that it would be great if the City put together a first class orientation book for new Councilmembers that has a checklist and all the things that a new Councilmember needs to know.

Councilmember Putzova said that she did not see the Anti-Campaign Ordinance on the Working Calendar.

She also reported that she had a great meeting with a lot of Native American students that stay at Kinlani Dormitory. She learned from them and they were a very interesting group of teenagers.

Mayor Evans asked that staff send a letter to the Arizona Corporation Commission thanking them for holding their meeting.

Mayor Evans then gave some highlights from her past week: attended the Jewish Community Center, met with City Management, Accounting and Finance re the Wildwood Hills Neighborhood Flooding; attended Grappling with Gridlock; attended Cesear Chavez Day (March 31) celebration; chaired the Coconino Plateau Water Advisory Council meeting; met with Terry Madeksza of the Downtown Business Alliance; John Stigmon with ECoNA, a student regarding a possible internship opportunity; attended the one hundred year anniversary of JC Penney, met with staff re the Mayor's Water Challenge and attended a legal clinic called Keep Flagstaff Together.

Mayor Evans thanked the Coconino County Board of Supervisors for use of their facility.

Mr. Copley said that the van would be meeting at City Hall in the morning at 8:00 a.m. to take the Council to the Hopi Tribal Council Meeting and he would get an update on the Chamber situation.

20.

ADJOURNMENT

The Regular Meeting of the Flagstaff City Council held April 4, 2017, adjourned at 8:37 p.m.

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CITY COUNCIL REGULAR MEETING TUESDAY, APRIL 4, 2017 COCONINO COUNTY BOARD OF SUPERVISORS CHAMBERS 219 WEST CHERRY AVENUE 4:30 P.M. AND 6:00 P.M.