Agenda

1.

CALL TO ORDER

Mayor Evans called the Regular Meeting of the Flagstaff City Council held April 18, 2017, to order at 6:00 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

Vice Mayor Whelan led the audience and City Council in the Pledge of Allegiance and Councilmember Overgaard 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

A.

Consideration and Approval of Minutes: City Council Regular Meeting of March 21, 2017; Special Meeting (Executive Session) of March 28, 2017; and Special Meeting (Executive Session) of April 11, 2017.

Moved by Councilmember Jim McCarthy, seconded by Councilmember Charlie Odegaard to approve the minutes of the City Council Regular Meeting of March 21, 2017; Special Meeting (Executive Session) of March 28, 2017; and Special Meeting (Executive Session) of April 11, 2017, as amended.

Vote: 7 - 0 - Unanimously

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.

The following individuals addressed the City Council with concerns about reported discussions of reduction in BBB revenues being used for tourism:

•Brian Tsosie
•Gordon Watkins
•Terry Madeksza
•Lynda Fleischer

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).

A.

Consideration of Appointments: Library Board.

Moved by Councilmember Eva Putzova, seconded by Vice Mayor Jamie Whelan to appoint Evin Dunn to the Library Board, term to expire November 2019.

Vote: 7 - 0 - Unanimously

8.

LIQUOR LICENSE PUBLIC HEARINGS

Mayor Evans opened the Public Hearing for the following liquor license applications. There being no public input, the Public Hearing was closed.

Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to send a recommendation to the Arizona Department of Liquor Licenses and Control for approval of both applications.

Vote: 7 - 0 - Unanimously

A.

Consideration and Action on Liquor License Application: Jeffrey Miller, "The Museum Club", 3404 E. Route 66, Series 06 (bar - all spirituous liquor), Person Transfer.

B.

Consideration and Action on Liquor License Application: Sasiwimon Tirakul, "Dara Thai Restaurant", 14 S. San Francisco St., Series 12 (restaurant), New License.

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.

Moved by Councilmember Scott Overton, seconded by Councilmember Eva Putzova to approve Consent Items 9-E and 9-F.

Vote: 7 - 0 - Unanimously

A.

Consideration and Approval of Construction Contract: CMAR 2017 Street Maintenance Project - GMP #2 - Chip Seal

Vice Mayor Whelan said that she was still concerned with the way the contracts are written. The contract reads $1,603,036, but reading through the contract the numbers are different.

Mr. Copley said that in response to some questions previously raised, he has Patrick Brown and Adam Miele present to answer those questions.

After some brief discussion, a break held between 6:30 p.m. and 6:35 p.m. a motion to approve was made and then withdrawn, and another break was held from 6:37 p.m. to 6:40 p.m. Councilmember Odegaard noted concern with no reference to the Fourth of July Parade in Item 9-C.

After further discussion all four items, 9-A through 9-D, were pulled by the City Manager and he said that they would bring back further information and clarifications at the Budget Retreat for action by the City Council.

B.

Consideration and Approval of Construction Contract: 2017 Street Maintenance Project - GMP #1 - Overlay

C.

Consideration and Approval of Construction Manager at Risk (CMAR) Contract: Phase 1 Utility Improvements of the Road Repair and Street Safety Program (RR&SS) Bundle #2 (Beaver/Dale) project to be awarded to Eagle Mountain Construction Inc. in the amount of $1,969,771.19.

D.

Consideration and Approval of Contract: Approve the Construction Contract with McDonald Brothers Construction in the amount of $1,637,898.50 for the Mike's Pike Water and Sewer Improvement Project (Project).

E.

Consideration and Approval of Lease Agreements: (1) A Lease with Pulliam I, LLC (for a gas station and convenience store); and (2) A Lease with Pulliam I, LLC (for an office building); both Leases located at 3051 West Shamrell Boulevard, parcel number 116-61-013, Pulliam Airport Airpark AM Unit 02, Tract: 5B, a 25.58 acre parcel.

F.

Consideration and Approval of Lease of City-Owned Property: Rental Car Concessions/Lease Agreement Extensions at the Flagstaff Pulliam Airport Terminal.

10.

ROUTINE ITEMS

A.

Consideration and Approval of Contract Amendment 1: Core Services Maintenance Facility – Guaranteed Maximum Price (GMP) #1 for the Phase I construction portion of Work.

Project Manager Adam Miele reviewed the project, noting that representatives of the contractor, Core Construction, the consultant, APMI, and Loven Contracting were all attending should any questions arise. He then began a PowerPoint presentation which addressed:

CORE SERVICES FACILITY
2010 – Council approved a bond initiative for $42 million – Did NOT pass with the voters.
2012 – City reviewed 8 property proposals for the location of the new Core Services.
2012 – Council approved a bond initiative for $14 million – The initiative passed.
2014 – Multiple project locations and partnering opportunities were reviewed by staff. On May 20th, staff presented the findings to Council. Council directed staff to proceed with current location, the McAllister property.

Councilmember Barotz recommended that Mr. Miele not refer to this as an initiative, but rather a bond question on the ballot.

PRE-CONSTRUCTION PHASE RESULTS
•Through the programming effort, the Design-Build (DB) team generated a draft Guaranteed Maximum Price (GMP) of $36.7 Million dollars for the construction of the facility. The programming would meet current Public Works staffing (5 -year projections)and programming needs.
•Reductions were made in the scope to ensure the project was within budget:
•programming building sizing was adjusted to current needs
•Construction of the Parks and Facilities building was differed until a later time
•Site plan was redesigned to improve site efficiency

Vice Mayor Whelan asked what they were doing with regard to sustainability. Mr. Miele replied that they are reducing the impact of the runoff and also utilizing the runoff. The first flush will be with the existing land so they are not putting it in a pipe. He said that the Administration Building will be built to LEED Silver and they are also looking at different ways to heat the Fleet Building, which is the largest, to find the most efficient.

Will Riley with APMI said that they are going for LEED Silver at the Administration Building with their primary focus of energy efficiency as #1 and healthy surfaces as #2. In terms of site sustainability, they are expending the LEDI basins. They will have parking lots for employees at the Administration Building with the first flush going into a large LEDI basin consisting of native materials. It will then flush into downstream basin and further down in to flood channel.

PROJECT OBJECTIVES
•Construct the Core Services Facility;
•Keeping the promise made to the voters
•Construct a safe facility for staff to continue to deliver a high level of service to the public
•Ensure the design and construction allows for future growth / expansion of the buildings
•Design and construct the facility keeping energy efficiency in mind
•With the completion of the project, the existing Public Works yard buildings and equipment will be vacated and available for future design and construction

CONSTRUCTION PHASING
•Phase One (April 18th council meeting)
•Construction of off-site utilities (sewer, power…)
•Roadway widening of Rte. 66
•Site grading
•On-site wet utilities
•Phase two (June 20th council meeting)
•Building foundations
•Buildings
•Paving
•Landscaping

Brief discussion was held on the contract price. Mr. Miele explained that they are going from the $2.2 million to $9 million in this phase. The total contract for this phase is is $11 million. The GMP works on different phases fo the construction. Overall, the total contract amount is around $24.5 million.

Councilmember Barotz suggested that they include some recitals within the contracts to explain to readers the nature of the contractual relationship, for transparency purposes. Mr. Brown said that they could include that in the next amendment.

Mr. Miele noted that this project was originally located in the County, but it was annexed into the City limits.

Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to approve the Design-Build Contract GMP Amendment No. 1 with CORE Construction, Inc. for the construction phase services for the Phase 1 portion of Work in the amount of $9,485,884 and an extension to the current contract time of 245 calendar days, with substantial completion of 5/5/2018, and authorize the City Manager to execute the necessary documents

Vote: 7 - 0 - Unanimously

B.

Consideration of Insurance Premium Renewals: Workers' Compensation, Property and General Liability Policies.

Risk Manager Dean Coughenour gave some history of the insurance premiums in Flagstaff, noting that in 2013 they started doing things differently. He has a new training program, Saving our Assets, designed to teach every employee to be a risk manager of the City. He said that employee injuries are down almost 50%, serious injuries are down 80%, and the premiums have reflected that over time. He said that the net result over this period of time is they have saved just over $2.5 million in premiums and they have not changed the coverages, and have the same carrier.

Mr. Coughenour said that for the future, they will see a modest increase in General Liability of two to four percent. They did have a loss in 2013, stemming from an event in 2011. He said that in the future they may be coming back to Council to consider self insurance of workers compensation, but today it does not make sense.

Councilmember Barotz thanked Mr. Coughenour for his creative approach that has demonstrated incredible results.

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Jim McCarthy to approve the renewal of our Workers' Compensation agreement with Copperpoint Mutual with an estimated annual cost of $576,000; approve the renewal of our Property insurance agreement with A.I.G. with an estimated annual cost of $199,321; and approve the renewal of our General Liability, Auto, Umbrella and associated lines of coverage with Travelers Insurance with an estimated annual cost of $685,389.

Vote: 7 - 0 - Unanimously

C.

Consideration and Adoption of Resolution No. 2017-15: Grant Intergovernmental Agreement Amendment #2 for the Pine Knoll Drive Safe Routes to School FUTS Project.

Project Manager Christine Cameron said that this was Amendment #2 of the Intergovernmental Agreement (IGA) which will provide additional combined federal funding and City funding in the amount of $271,357 for construction of the project. This will fund City-requested scope additions and general inflation in construction costs. The additional improvements include a widened street, an additional traffic lane at the intersection of Pine Knoll Drive and Lone Tree Road and additional asphalt pavement replacement for the entire roadway of Pine Knoll from South San Francisco Street to Lone Tree Road. The project is planned for construction from July to August 2017.

Vice Mayor Whelan asked if there would be any bike lanes. Ms. Cameron replied that there would be bike lanes on both sides.

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Jim McCarthy to read Resolution No. 2017-15 by title only.

Vote: 7 - 0 - Unanimously

A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL APPROVING AMENDMENT NO. 2 TO AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE ARIZONA DEPARTMENT OF TRANSPORTATION AND THE CITY OF FLAGSTAFF FOR THE DESIGN AND CONSTRUCTION OF A SHARED-USE PATHWAY LOCATED ALONG PINE KNOLL DRIVE BETWEEN SAN FRANCISCO AND LONE TREE ROAD

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Jim McCarthy to adopt Resolution No. 2017-15.

Vote: 7 - 0 - Unanimously

D.

Consideration and Approval of Contract: Intergovernmental Agreement Between the City of Flagstaff and the City of Phoenix (related to Business Intelligence System)

Interim Revenue Director Sandy Corder said that beginning in July 2016 the Arizona Department of Revenue (ADOR) enabled local taxpayers to file transaction privilege taxes (also referred to as local sales taxes) through the state portal. This proposed Intergovernmental Agreement (IGA) will provide City of Phoenix developed software to the City of Flagstaff (City), improving the ability to evaluate tax data timely and accurately. She said that the amount is based on population. She said that it will provide the City a much better grasp of the information, and it can manipulated more.

Councilmember Putzova asked, once this is approved, when they will be able to use it. Ms. Corder replied that Phoenix has actually allowed them to use it now.

Moved by Councilmember Jim McCarthy, seconded by Councilmember Eva Putzova to approve the Intergovernmental Agreement with the City of Phoenix, effective May 1, 2017, for the use of the Business Intelligence System.

Vote: 7 - 0 - Unanimously

E.

Consideration and Adoption of Resolution No. 2017-14: A Resolution of the City Council of the City of Flagstaff, Arizona to abandon vacated water line easements, recorded in the records of Coconino County, Arizona, Docket 105, page 156 and Docket 324, page 256, and establishing an effective date.

Moved by Councilmember Scott Overton, seconded by Councilmember Charlie Odegaard to read Resolution No. 2017-14 by title only, as amended.

Mr. Solomon noted that there was an amended resolution in front of them and then read those changes.

Vote: 7 - 0 - Unanimously

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, ARIZONA, TO ABANDON VACATED WATER LINE EASEMENTS RECORDED IN THE RECORDS OF COCONINO COUNTY, ARIZONA, DOCKET 105, PAGE 156 AND DOCKET 324, PAGE 256; AND ESTABLISHING AN EFFECTIVE DATE

Moved by Councilmember Jim McCarthy, seconded by Councilmember Eva Putzova to adopt Resolution No. 2017-14.

Vote: 7 - 0 - Unanimously

F.

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.

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Eva Putzova to read Ordinance No. 2017-11 by title only for the final 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

Moved by Councilmember Charlie Odegaard, seconded by Councilmember Eva Putzova to adopt Ordinance No. 2017-11.

Vote: 7 - 0 - Unanimously

11.

PUBLIC HEARING ITEMS

A.

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)

Mayor Evans opened the Public Hearing.

Moved by Mayor Coral J. Evans, seconded by Vice Mayor Jamie Whelan to continue the Public Hearing to the May 16, 2017, Council Meeting.

Mr. Solomon explained that there were changes proposed to Suddenlink after the last meeting and they have not yet heard back from them.

Vote: 7 - 0 - Unanimously

12.

REGULAR AGENDA

A.

Discussion and Possible Direction: Current Issues Before the Arizona Legislature, Federal Issues and Administrative Items Before State Agencies.

Mr. Copley said that he was standing in tonight for Gail Jackson. He said that a Letter of Appreciation was prepared to the Hopi Tribal Council with a line for each member to sign.

He said that they continue to work with the state lobbyist and those at the Capitol working on the Transaction Privilege Tax (T)T) change being strongly supported by the Govern, which the League and the City of Flagstaff oppose.

Mr. Copley noted that a special meeting has been scheduled with the state legislative delegation for lunch on April 28, 2017, at the Business Accelerator.

Mayor Evans noted that she had the opportunity to speak to the Leadership at Northern Arizona University and they are working on getting a meeting with the Council and Board of Regents, perhaps some time in June.

13.

DISCUSSION ITEMS

None

14.

COUNCIL LIAISON REPORTS

None

15.

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 Councilmember McCarthy to place on a future agenda a presentation re a possible resolution supporting continued Amtrak service through Flagstaff, and a presentation by the Arizona representative of the National Association of Railroad Passengers.

Councilmember McCarthy said that the President's budget has proposed to defund any long distance train routes in the United States, which would affect the City of Flagstaff. He was amazed with the number of people that get on and off the trains in Flagstaff; it was a comparable number to those flying in and out of Flagstaff. He said that the National Association of Railroad Passengers is willing to come and give a presentation and he was proposing that this item be on a future meeting.

There was agreement by others to move this item forward. Councilmember McCarthy said that he would forward the contact information to Mr. Copley.

B.

Future Agenda Item Request (F.A.I.R.): A request by Councilmember Odegaard to place on a future agenda discussion of placing a city charter amendment on a future ballot concerning minimum wage.

Councilmember Odegaard respectfully requested that this item be postponed for more clarity.

16.

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

Councilmember Odegaard, with respect to leases at the airport, said that he read that the lease had already come and passed and asked for a CCR on that situation.

Vice Mayor Whelan said that they need to look at some of the confusion that happened today with the contracts. As a Council they need to look at policies around them, and perhaps that would be a F.A.I.R. item. After brief discussion, Councilmember Barotz offered to work with the Vice Mayor to word the F.A.I.R. item and send it to the City Manager.

Mr. Copley noted that they already have a F.A.I.R. item or two with respect to the procurement manual. He said that they could treat those together or individually. Vice Mayor Whelan withdrew her F.A.I.R. at that time.

Mr. Copley reminded Council that Thursday evening there is a dinner at Salsa Brava with the members of the State Transportation Board and then the next morning is the State Transportation Board's meeting at 9:00 a.m. in the County Supervisors' Chambers.

Mr. Copley noted that next week on Wednesday and Thursday they would have the Budget Retreat, starting at 9:00 a.m. He said that at the end of that Retreat they would address the four contract items pulled from the agenda this evening.

Mayor Evans reported on her activities for the past week: hosted four Cromer classes at City Hall and she appreciated Meg's work; filmed the Public Service Announcement for the statewide Child Abuse Prevention activities taking place; read a proclamation for the 49th Anniversary of the Fair Housing Act; attended a Flinn Foundation luncheon; met and spoke with Arizona Forward, which she is interested in having the City join; met with the Nation of Patriots and several staff members regarding their bike ride; attended the CJCC meeting; presented the City's Public Participation Policy to the a Northern Arizona University class.

Mayor Evans also reported that there was a Community Barbeque and Celebration on April 22 at Hal Jensen Memorial Activity Center from noon to 4:00 p.m. and she encouraged members of the Council to attend.

Mayor Evans thanked the Flagstaff High School and its Principal for hosting them in their facility today. She also thanked City staff for working through the issues they faced with the first of many Council meetings throughout the community.

17.

ADJOURNMENT

The Regular Meeting of the Flagstaff City Council held April 19, 2017, adjourned at 7:46 p.m.

Return
CITY COUNCIL REGULAR MEETING TUESDAY, APRIL 18, 2017 FLAGSTAFF HIGH SCHOOL HURLEY THEATER 6:00 P.M. MINUTES