Agenda

DRAFT AGENDA

REGULAR COUNCIL MEETING
TUESDAY
APRIL 18, 2017

FLAGSTAFF HIGH SCHOOL
MAIN AUDITORIUM - 400 W. ELM AVE.
6:00 P.M.

PLEASE NOTE THE CHANGE IN MEETING LOCATION
AND
THE MEETING WILL BEGIN AT 6:00 P.M.
(ALL 4:30 P.M. ITEMS WILL BE CONSIDERED DURING 6:00 P.M. MEETING)

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 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).

ROLL CALL

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

MAYOR EVANS
VICE MAYOR WHELAN
COUNCILMEMBER BAROTZ
COUNCILMEMBER MCCARTHY

COUNCILMEMBER ODEGAARD
COUNCILMEMBER OVERTON
COUNCILMEMBER PUTZOVA

PLEDGE OF ALLEGIANCE AND MISSION STATEMENT

MISSION STATEMENT

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

APPROVAL OF MINUTES FROM PREVIOUS MEETINGS

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.

PROCLAMATIONS AND RECOGNITIONS

APPOINTMENTS

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

Consideration of Appointments: Library Board.

RECOMMENDED ACTION:

Make one appointment to a term expiring November 2019.

LIQUOR LICENSES PUBLIC HEARINGS

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

RECOMMENDED ACTION:

Hold the Public Hearing; absent any valid concerns received from the public hearing, staff recommends the Council forward a recommendation for approval to the State.

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

RECOMMENDED ACTION:

Hold the Public Hearing; absent any valid concerns received from the public hearing, staff recommends the Council forward a recommendation for approval to the State.

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.

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

RECOMMENDED ACTION:

1) Approve the Construction Manager at Risk (CMAR) Construction Services Agreement (Agreement) with C and E Paving and Grading, LLC in an amount not to exceed $1,603,036 for Guaranteed Maximum Price (GMP) # 2.
2) Approve Change Order Authority to the City Manager in the amount of $160,303 (10% for GMP # 2), to cover potential costs associated with unanticipated or additional items of work.
3) Authorize the City Manager to execute the necessary documents.

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

RECOMMENDED ACTION:

1) Approve the Construction Manager at Risk (CMAR) Construction Services Agreement (Agreement) with C and E Paving and Grading, LLC, in an amount not to exceed $2,695,631.29 for Guaranteed Maximum Price (GMP) #1 - Chip Seal projects.
2) Approve Change Order Authority to the City Manager in the amount of $ 269,563 (10% for GMP # 1), to cover potential costs associated with unanticipated or additional items of work.
3) Authorize the City Manager to execute the necessary documents.

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.

RECOMMENDED ACTION:

1) Approve the Construction Manager at Risk (CMAR) Contract with Eagle Mountain Construction Inc. for a Guaranteed Maximum Price (GMP) of $1,969,771.19 and a contract time of 488 calendar days; and
2) Authorize the City Manager to execute the necessary documents.

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).

RECOMMENDED ACTION:

1) Approve the construction contract with McDonald Brothers Construction in the amount of $1,637,898.50, and a contract time of 180 calendar days;
2) Approve Change Order Authority to the City Manager in the amount of $154,789.00 (10% of the contract amount, less allowance of $90,000.00); and
3) Authorize the City Manager to execute the necessary documents.

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.

RECOMMENDED ACTION:

Approval of two Lease Agreements under the original terms and conditions of the Master Lease as amended through the Fourth Amendment to the Lease Agreement with Pulliam I, LLC dated March 29, 2012; direct staff to prepare the lease forms and allow for immaterial changes with no reduction in rent; and authorize the City Manager to execute the final documents.

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

RECOMMENDED ACTION:

Approve the Rental Car Concessions/Lease Agreement Extensions with Avis Budget, Enterprise, Hertz, National, and Alamo.

10.

ROUTINE ITEMS

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

RECOMMENDED ACTION:

1) 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
2) Authorize the City Manager to execute the necessary documents.

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

RECOMMENDED ACTION:

1) Approve the renewal of our Workers' Compensation agreement with Copperpoint Mutual with an estimated annual cost of $576,000.
2) Approve the renewal of our Property insurance agreement with A.I.G. with an estimated annual cost of $199,321.
3) 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.

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

RECOMMENDED ACTION:

1) Read Resolution No. 2017-15 by title only
2) City Clerk reads Resolution No. 2017-15 by title only
3) Adopt Resolution No. 2017-15

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

RECOMMENDED ACTION:

Approve Intergovernmental Agreement with the City of Phoenix effective May 1, 2017 for the use of the Business Intelligence System.

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.

RECOMMENDED ACTION:

1) Read Resolution No. 2017-14 by title only
2) City Clerk reads Resolution No. 2017-14 by title only (if approved above)
3) Adopt Resolution No.2017-14

11.

PUBLIC HEARING ITEMS

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)

RECOMMENDED ACTION:

1) Continue Public Hearing/Close Public Hearing
2) Read Ordinance No. 2017-04 by title only for the final time
3) City Clerk reads Ordinance No. 2017-04 by title only (if approved above)
4) Adopt Ordinance No. 2017-04
5) Read Resolution No. 2017-11 by title only
6) City Clerk reads Resolution No. 2017-11 by title only (if approved above)
7) Adopt Resolution No. 2017-11

12.

REGULAR AGENDA

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

13.

DISCUSSION ITEMS

14.

COUNCIL LIAISON REPORTS

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.

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.

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.

16.

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

17.

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 _________________, 2017.

____________________________________

Elizabeth A. Burke, MMC, City Clerk

7.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:	Stacy Saltzburg, City Clerk
Date:	04/05/2017
Meeting Date:	04/18/2017


TITLE:
Consideration of Appointments: Library Board.
RECOMMENDED ACTION:
Make one appointment to a term expiring November 2019.
Executive Summary:
The Flagstaff City-Coconino County Public Library Board consists of two County residents, four City residents, and one each non-voting member, or designee, of the City Council and the Board of Supervisors. The Library Board serves as a citizen's advisory board to the Library Director. There are currently two City resident vacancies and the Library Board is having difficulty establishing a quorum for meetings. It is important to fill vacancies on boards and commissions quickly so as to allow them to continue meeting on a regular basis. There is one application on file for consideration by the Council as follows: Evin Dunn (new applicant) In an effort to reduce exposure to personal information the applicant roster and application will be submitted to the City Council separately. COUNCIL APPOINTMENT ASSIGNMENT: Councilmember Putzova.
Financial Impact:
These are voluntary positions and there is no budgetary impact to the City of Flagstaff.
Policy Impact:
Not applicable.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
There is no Council goal that specifically addresses appointments to Boards and Commissions; however, boards and commissions do provide input and recommendations based on City Council goals that may pertain to the board or commission work plan.
Has There Been Previous Council Decision on This:
None
Options and Alternatives:
1) Appoint one Board Member: By appointing a member at this time, the Library Board will be at near full membership, allowing the group to meet and provide recommendations to the City Council. 2) Postpone the action to allow for further discussion or expand the list of candidates.
Community Benefits and Considerations:
The City's boards, commissions, and committees were created to foster public participation and input and to encourage Flagstaff citizens to take an active role in city government.
Community Involvement:
INFORM: The vacancies are posted on the City's website and individual recruitment and mention of the opening by Commission members and City staff has occurred, informing others of this vacancy through word of mouth.

Attachments:

Library Board Authority

8.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:	Stacy Saltzburg, City Clerk
Date:	03/23/2017
Meeting Date:	04/18/2017


TITLE:
Consideration and Action on Liquor License Application: Jeffrey Miller, "The Museum Club", 3404 E. Route 66, Series 06 (bar - all spirituous liquor), Person Transfer.
RECOMMENDED ACTION:
Hold the Public Hearing; absent any valid concerns received from the public hearing, staff recommends the Council forward a recommendation for approval to the State.
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 06 license allows a bar retailer to sell and serve spirituous liquors, primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises Series 06 (bar- all spirituous liquor) licenses are obtained through the person and/or location transfer of an existing license from another business. This transfer is from Randy Nations of The Museum Club which was located in Flagstaff. The Museum Club is under new management and therefore a transfer is needed for the liquor license. There are currently 19 active series 06 liquor licenses in Flagstaff and 3 inactive licenses; if approved, this license will be the 20th active series 06 license. The property has been posted as required, and the Police and Community Development divisions have reviewed the application with no concerns noted.
Financial Impact:
There is no budgetary impact to the City of Flagstaff as this is a recommendation to the State.
Policy Impact:
Not applicable.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Liquor licenses are a regulatory action and there is no Council goal that applies.
Has There Been Previous Council Decision on This:
Not applicable.
Background/History:
Because the application is for a person transfer, consideration may only be given to the applicant's personal qualifications. The deadline for issuing a recommendation on this application is May 2, 2017.
Community Benefits and Considerations:
This business will contribute to the tax base of the community.
Community Involvement:
The application was properly posted on March 27, 2017. No written protests have been received to date.

Attachments:	Museum Club - Letter to Applicant
	Hearing Procedures
	Series 06 Description
	Museum Club - PD Memo
	Museum Club - Code Memo
	Museum Club - Map

9.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:	Adam Miele, Airport Program Manager
Date:	04/04/2017
Meeting Date:	04/18/2017


TITLE:
Consideration and Approval of Construction Contract: CMAR 2017 Street Maintenance Project - GMP #2 - Chip Seal
RECOMMENDED ACTION:
1) Approve the Construction Manager at Risk (CMAR) Construction Services Agreement (Agreement) with C and E Paving and Grading, LLC in an amount not to exceed $1,603,036 for Guaranteed Maximum Price (GMP) # 2. 2) Approve Change Order Authority to the City Manager in the amount of $160,303 (10% for GMP # 2), to cover potential costs associated with unanticipated or additional items of work. 3) Authorize the City Manager to execute the necessary documents.
Executive Summary:
Approval of this contract will allow the City to complete construction of Phase 2 (GMP 2) of the 2017 Street Maintenance Program. Phase 2 will consist of chip seals of various roadways utilizing monies from the Highway User Revenue Fund (HURF) funding (Street Maintenance Section's annual ongoing and one-time budget). Following the passing of Proposition 406 (Road Repair and Street Safety Initiative) in November 2014, the HURF funding has been allocated to chip seals for roadways throughout the city. Approval of the contract will further demonstrate Council's commitment to maintaining City infrastructure through the annual budgeting process as well as improving infrastructure through the first project utilizing funding approved by voters in November 2014.
Financial Impact:
Funding for GMP # 2 is to be provided by the 2014 voter approved sales tax increase in account 046-06-163-3321-6.
Policy Impact:
No policy impacts are a result of this project. By approving this Agreement, improvements to the City’s existing infrastructure will improve the health, welfare and safety of the residents of Flagstaff.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Transportation and Other Public Infrastructure – Approval of this Agreement will preserve and improve the City's roadway assets.
Has There Been Previous Council Decision on This:
Yes: In January 2016, Council approved the design phase services contract with Plateau Engineering, Inc. In April 2016, Council approved the construction of a multiple phased roadway project (2016 Street Maintenance Project) with the same contractor for this Agreement, C and E Paving and Grading, LLC.
Options and Alternatives:
Approve the CMAR Construction Phase Services Agreement as presented. Reject the CMAR Construction Phase Services Agreement and direct Staff to pursue traditional design-bid-build project delivery. This would negatively delay progress on the project by three to five months.
Background/History:
The City has established an annual Street Maintenance Program (Program) to maintain existing streets. This year, the Program will provide three major services: non-structural upgrades by overlay, American's with Disabilities Act (ADA) compliance, and chip sealing. The overlay streets are selected after evaluation of the street condition using pavement management software owned by the City. One half of the City street pavements are evaluated and ranked each year. Each street pavement is assigned an overall condition index (OCI) based on the type and severity of the distress observed. A pavement that has no distress is given an OCI of 100. Each pavement distress such as cracking or roughness reduces the street’s OCI. The street pavements are ranked by OCI and the pavements exhibiting the most severe distress are programmed for resurfacing with asphaltic concrete overlays as budget allows. In recent years, the Arizona State Legislature has authorized the use of Alternative Project Delivery Methods (APDM) in lieu of the traditional Design-Bid-Build method of project delivery. These alternative methods, including CMAR, allow a contracting agency the opportunity to select a construction team utilizing a Qualifications Based Selection process to procure construction services from a firm deemed most qualified to perform the work. The enabling legislation also allows for provision of multiple GMPs under a single procurement. On August 31, 2014, a Request for Statements of Qualifications for CMAR services was published in the Arizona Daily Sun and posted on the City’s Purchasing web site. On September 23, 2014, the City received five Statements of Qualifications from firms wishing to provide CMAR services for the project. A selection committee of five members independently reviewed and evaluated those statements in accordance with guidelines established by the enabling legislation. Based on numerical evaluation of the statements received, the firm of C and E Paving and Grading, LLC, received the highest ranking and was deemed the most qualified among those submitting proposals to provide the desired design phase services. On November 18, 2014, Council approved award of the CMAR Design Phase Services Contract for the 2015, 2016 and 2017 Programs to C and E Paving and Grading, LLC, in the amount of $112,821.00. Design phase services including program and budget evaluation, project scheduling, design document reviews, constructability reviews, detailed cost estimating, and preparation of final construction documents have now been completed. Based upon the Design Phase Services, C and E Paving and Grading, LLC, has provided a GMP to complete construction of the annual improvement project. The GMP will include costs for construction, a CMAR contingency, construction fee, costs for General Conditions including bonds and insurance, and sales taxes.
Key Considerations:
The goal of the Program is to use the available funds in the most efficient manner to lengthen the service life of the City street pavements and avoid costly pavement reconstruction. In addition, the ADA improvements provide improved access for disabled citizens and visitors along existing streets and provide compliance with Federal requirements. Chip seal work provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition.
Expanded Financial Considerations:
Funding for the overlay portion of the Program is to be provided by the 2014 voter approved sales tax increase. The Agreement includes a contingency for the City of up to $50,000.00 to cover the potential cost of unanticipated or additional work which may be required during construction. Account Number: 046-06-163-3321-6
Community Benefits and Considerations:
The Program provides surface treatments as required to preserve and maintain pavement condition on the 664 lane miles of asphalt City streets. The ADA improvements provide improved access for disabled citizens and visitors along existing streets and provide compliance with Federal requirements. Previous Councils have approved programs in the 2015 and 2016 fiscal years which were a great success. These programs utilized 2014 voter approved sales tax funds (59 streets or 45 lane miles of overlay and 1 street or 1.2 miles of repaving). In addition to the sales tax funds, HURF funds were utilized (267 streets or 178 lane miles in chip sealing). Use of the CMAR method of project delivery will eliminate the need for an advertisement/bid/award process and will cut approximately two months off the project development schedule. In addition, value engineering, constructability reviews and design input conducted as part of this service agreement have the potential to realize significant construction cost savings over the traditional design-bid-build delivery method.
Community Involvement:
Inform - The Public Works Division will prepare weekly news releases to be distributed to the local media outlets describing the location of the street construction and any traffic restrictions planned for the week. The contractor will distribute written notices to all the adjacent businesses and residents in advance of the construction.
Expanded Options and Alternatives:
Approve the CMAR Construction Phase Services Agreement. Reject approval of the CMAR Construction Phase Services Agreement and direct staff to pursue traditional design-bid-build project delivery. This would effectively delay progress on the project by three to five months.

Attachments:	CMAR Contract - Overlay
	Map
	GMP Two

9.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:	Adam Miele, Airport Program Manager
Date:	04/04/2017
Meeting Date:	04/18/2017


TITLE:
Consideration and Approval of Construction Contract: 2017 Street Maintenance Project - GMP #1 - Overlay
RECOMMENDED ACTION:
1) Approve the Construction Manager at Risk (CMAR) Construction Services Agreement (Agreement) with C and E Paving and Grading, LLC, in an amount not to exceed $2,695,631.29 for Guaranteed Maximum Price (GMP) #1 - Chip Seal projects. 2) Approve Change Order Authority to the City Manager in the amount of $ 269,563 (10% for GMP # 1), to cover potential costs associated with unanticipated or additional items of work. 3) Authorize the City Manager to execute the necessary documents.
Executive Summary:
Approval of this Agreement will allow the City to complete construction of Phase 2 of the 2017 Street Maintenance Program (Program). Phase 2 will consist of chip seals of various roadways utilizing monies from the Highway User Revenue Fund (HURF) funding (the Street Maintenance Section's annual ongoing and one-time budget). Following the passing of Proposition 406 (Road Repair and Street Safety Initiative) in November 2014, the HURF funding has been allocated to chip seals for roadways throughout the City. Approval of the Agreement will further demonstrate Council's commitment to maintaining City infrastructure through the annual budgeting process as well as improving infrastructure by utilizing funding approved by voters in November 2014.
Financial Impact:
Funding for GMP #1 is provided by the HURF and Proposition 406 funded in account 040-06-162-3073-6-4443 in FY17.
Policy Impact:
No policy impacts are a result of this project. By approving this Agreement, improvements to the City’s existing infrastructure will improve the health, welfare and safety of the residents of Flagstaff.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Transportation and Other Public Infrastructure – This Agreement will preserve and improve the community’s roadway assets. Regional Plan goals that apply include: Goal LU.7. Provide for public services and infrastructure. Goal LU.10. Increase the proportion of urban neighborhoods to achieve walkable, compact growth. Goal T.1. Improve mobility and access throughout the region. Goal T.2. Improve transportation safety and efficiency for all modes. Goal T.8. Establish a functional, safe, and anesthetic hierarchy of roads and streets.
Has There Been Previous Council Decision on This:
Yes: In January 2016, Council approved the design phase services contract with Plateau Engineering, Inc. In April 2016, Council approved the construction of a multiple phased roadway project (2016 Street Maintenance Project) by the same contractor for this Agreement, C and E Paving and Grading, LLC.
Options and Alternatives:
1. Approve the CMAR Construction Phase Services Agreement as presented. 2. Reject the CMAR Construction Phase Services Agreement and direct Staff to pursue traditional design-bid-build project delivery. This would delay progress on the project by two to five months.
Background/History:
The City has established an annual Program to maintain existing streets. This year, the Program will provide three major services: non-structural upgrades by overlay (Prop. 406 funding), Americans' with Disabilities Act (ADA) compliance (Prop. 406 funding), and chip sealing (HURF funding). Improvements to the City’s streets are selected after evaluation of the street condition using pavement management software owned by the City. One half of the City street pavements are evaluated and ranked each year. Each street pavement is assigned an overall condition index (OCI) based on the type and severity of the distress observed. A pavement that has no distress is given an Overall Condition Index OCI of 100. Each pavement distress such as cracking or roughness reduces the street’s OCI. The street pavements are ranked by OCI’s and the pavements exhibiting the most severe distress are programmed for replacement. OCI’s that score within the middle range receive resurfacing with asphaltic concrete overlays as budget allows. Roadways with a higher OCI will receive a Chip seal work that provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition. In recent years, the Arizona State Legislature has authorized the use of Alternative Project Delivery Methods (APDM) in lieu of the traditional Design-Bid-Build method of project delivery. These alternative methods, including CMAR, allow a contracting agency the opportunity to select a construction team utilizing a Qualifications Based selection process to procure construction services from a firm deemed most qualified to perform the work. The enabling legislation also allows for provision of multiple GMPs under a single procurement. On August 31, 2014, a Request for Statements of Qualifications for CMAR services was published in the Arizona Daily Sun and posted on the City’s Purchasing web site. On September 23, 2014, the City of Flagstaff received five Statements of Qualifications from firms wishing to provide CMAR services for the project. A selection committee of five members independently reviewed and evaluated those statements in accordance with guidelines established by the enabling legislation. Based on numerical evaluation of the statements received, the firm of C and E Paving and Grading, LLC, received the highest ranking and was deemed the most qualified among those submitting proposals to provide the desired design phase services. On November 18, 2014, Council approved an award of the CMAR Design Phase Services Contract for the 2015, 2016 and 2017 programs to C and E Paving & Grading, LLC in the amount of $112,821.00. Design Phase Services including program and budget evaluation, project scheduling, design document reviews, constructability reviews, detailed cost estimating, and preparation of final construction documents have now been completed. Based upon the Design Phase Services, C and E Paving & Grading, LLC, has provided a GMP to complete construction of the annual Program. The GMP includes costs for construction, a CMAR contingency, construction fee, costs for General Conditions including bonds and insurance, and sales taxes.
Key Considerations:
The goal of the Program is to use the available funds in the most efficient manner to lengthen the service life of the City street pavements and avoid costly pavement reconstruction. Chip seal work provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition.
Expanded Financial Considerations:
Funding for the pavement preservation portion of the Program GMP #1 is provided by the budget in FY 2016/2017. The Agreement includes an owner’s contingency of $50,000.00 and $50,000.00 for contractor’s contingency (to be approved by owner for authorization) to cover the potential cost of unanticipated or additional work which may be required during construction.
Community Benefits and Considerations:
The Program provides surface treatments as required to preserve and maintain pavement condition on the 664 lane miles of asphalt City streets. Use of the CMAR method of project delivery eases the need for a traditional advertisement/bid/award process and cuts approximately two months off the project development schedule. In addition, value engineering, constructability reviews and design input conducted as part of this service agreement have the potential to realize significant construction cost savings over the traditional design-bid-build delivery method.
Community Involvement:
Inform - The Public Works Division will prepare weekly news releases to be distributed to the local media outlets describing the location of the street construction and any traffic restrictions planned for the week. The contractor will distribute written notices to all the adjacent businesses and residents in advance of the construction. In addition, site maps of the streets planned for construction activities will be provided on the City's website.
Expanded Options and Alternatives:
1. Approve the CMAR Construction Phase Services Agreement as presented. 2. Reject the CMAR Agreement and direct staff to pursue traditional design-bid-build project delivery. This would delay progress on the project by two to five months.

Attachments:	CMAR Contract - Chip Seal
	Map
	GMP One

9.C.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:	Eli Reisner, Project Manager - ER
Date:	02/28/2017
Meeting Date:	04/18/2017


TITLE:
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.
RECOMMENDED ACTION:
1) Approve the Construction Manager at Risk (CMAR) Contract with Eagle Mountain Construction Inc. for a Guaranteed Maximum Price (GMP) of $1,969,771.19 and a contract time of 488 calendar days; and 2) Authorize the City Manager to execute the necessary documents.
Executive Summary:
Staff recommends a CMAR construction contract award of $1,969,771.19 to Eagle Mountain Construction, Inc. (EMC) to complete Phase 1 Utility Improvements of the RR&SS Bundle #2 (Beaver/Dale) project, which includes water main, water services, fire hydrants, sewer main, sewer services, underground traffic signal conduit, and street lights with underground electric. Phase 2, the Roadway Improvements portion of the project, will be presented for Council’s consideration on June 20, 2017. Pending Council's approval, construction is anticipated to begin May 2017 for Phase 1 and in July 2017 for Phase 2. Both phases are to be completed by August 2018. Please refer to attached context and vicinity maps.
Financial Impact:
The RR&SS Bundle #2 (Beaver/Dale) project is funded by the total budget appropriations of $9,144,212.00 (includes FY 17 budget and FY 18 proposed budget) from the Road Repair and Street Safety – Utility Replacements and Overlays Fund. The other funding sources are $16,000.00 from NAIPTA for temporary bus stops, $100,000.00 from the Transportation Tax Fund for street lighting and conduit, and $100,000.00 from the Aging Water Infrastructure Replacement Fund (Account # 202-08-370-3157-0-4463) for new waterline infrastructure on Beaver St. south of Cherry Ave.
Policy Impact:
No Impact.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
*COUNCIL GOALS:* Transportation and Other Public Infrastructure: Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system. Replacement of aging infrastructure REGIONAL PLAN: Goal T.8. Establish a functional, safe, and aesthetic hierarchy of roads and streets. TEAM FLAGSTAFF STRATEGIC PLAN: Strategic priority #4: Work in partnership to enhance a safe and livable community Foster a safe, healthy, equitable and accessible community.
Has There Been Previous Council Decision on This:
Council previously approved the ballot language for the Road Repair and Street Safety Initiative (Prop. 406). Council adopted the FY16 and FY17 budgets and these appropriations were included in those budgets. Council approved the award of both Consultant Services and CMAR Design and Construction Phase Services contracts for the design of RR&SS Bundle #2 (Beaver/Dale) project to The WLB Group, Inc. (WLB) and to EMC, respectively, at the September 20, 2016 Council Meeting.
Options and Alternatives:
Approve the award as recommended. Approval will allow work to move forward in calendar year 2017; or, Reject approval of the award as recommended. This action would delay the project until next construction season. If rejection occurs, possible options include: a. Ask staff to re-evaluate the recommendation; or b. Suspend or cancel the project completely.
Background/History:
On November 18, 2014, Council adopted the results of the General Election held on November 4, 2014. In the General Election voters approved a dedicated sales tax increase, Proposition 406, which included funding for road repairs and street safety improvements throughout the City of Flagstaff. Attached is the Road Repair and Street Safety Program Schedule for 2015 - 2022. Beaver St. and Dale Ave. both qualified to receive pavement and utility improvements and their proximity made them ideal projects to combine into Bundle #2 of the Road Repair and Street Safety Program. Phase 1 Utility Improvements consist of upgrading the existing water main and water services in Beaver St., upgrading the existing water services and extending stubbed out water mains in Dale Ave., upgrading select existing sections of sewer main, upgrading the existing sewer services, installing new underground traffic signal conduit in Beaver St., and installing new street lights with underground electric on Beaver St. Phase 2 roadway improvements consist of upgrading the underground storm water system in Sullivan Ave. and Hunt Ave. from Beaver St. to Humphreys St. to improve drainage, re-building the roadway section on Beaver St., rebuilding portions of the roadway section on Dale Ave. to relieve the extreme cross slope, milling and overlaying the roadway on Dale Ave. where possible, replacing select curb and gutter, replacing select concrete sidewalk, replacing select sidewalk ramps, and resetting tree grates and select sidewalk brick in the downtown area on Beaver St. The Purchasing Section solicited a Request for Statement of Qualifications (RSOQ) for a CMAR Contractor. Statement of Qualifications were evaluated and EMC was selected to provide CMAR design and construction phase services. EMC performed CMAR design phase services with the goal of developing a Guaranteed Maximum Price (GMP) for both Phase 1 and Phase 2.
Key Considerations:
Staff identified the following items, and associated costs, as not being eligible to be constructed with Road Repair and Street Safety funds: New street lights, poles, and underground electric on Beaver St. New traffic signal conduit in Beaver St. New waterline (that does not currently exist) in Beaver St. from Cherry Ave. to Birch Ave. outside the original project limits. Separate funding sources have been identified to pay or reimburse the costs for the above identified items. The Construction Manager at Risk (CMAR) method of procurement was selected to expedite the design and construction schedule and to accommodate complex sequencing of construction activities for a complex project with limits in an established neighborhood and the downtown district. Pending Councils approval of this contract, the CMAR method of procurement will potentially allow underground utility construction to begin two months ahead of the original schedule. The CMAR process is a collaborative effort, which allows for open dialog between the City, the design consultant, and the contractor on critical design and construction issues to minimize impacts to the community during construction. The contractor will be intimately involved with the coordination of construction activities and keeping the stakeholders informed on schedule, sequence, and impacts. 488 calendar days is for both Phase 1 and Phase 2 to be complete by end of August 2018.
Community Benefits and Considerations:
Replacement of aged water and sewer infrastructure, with some existing utilities dated 1919, to meet current standards. Improving fire flows and increasing the water capacity in the downtown area to accommodate future growth by replacing the existing 8” water main with a 12” water main in Beaver St. from Columbus Ave. to Birch Ave. Installation of new underground traffic signal conduit on Beaver St. for future traffic signal connections from Columbus Ave. to Birch Ave. New Streetlights with underground electric on Beaver St. (Columbus to Cherry). The project will reduce the infrastructure maintenance in the project area. Construction coordination with two City projects to minimize inconveniences to the downtown area and the public. Phase 2 - replacement of aging asphalt pavement that can no longer be maintained with a chip seal or pavement overlay.
Community Involvement:
Inform, Involve, Empower: In November 2014, voters approved a dedicated sales tax increase to fund road repair and street safety improvements throughout the City of Flagstaff. The City of Flagstaff notified the public of the upcoming project in the summer and winter 2016 Cityscape. The project is shown in the interactive map located under the Road Repair and Street Safety Updates on the City of Flagstaff’s Website at: http://www.flagstaff.az.gov/index.aspx?nid=3210 In September 2016, staff sent temporary entry permit requests and project notices to approximately 80 property owners adjacent to the project. The City of Flagstaff’s Capital Improvements Engineer presented an update of the Road Repair and Street Safety Program, which included the RR&SS Bundle #2 (Beaver/Dale) project, at the February 1, 2017 Transportation Commission Meeting. The Project Stakeholders, ADOT, FUSD, NAIPTA, Flagstaff Medical Center, and all First Responders were notified of the upcoming project and were asked to provide their input and concerns with the project. They were also consulted with during the development of the traffic control plan for the project. A public meeting was held on March 30th, 2017 at City Hall. City Staff, EMC, and WLB were in attendance. City Staff presented the Project and held discussions with residents and business owners from the neighborhood. Staff, EMC, and WLB met with the Downtown Business Alliance (DBA) Members to present and discuss the Project at the April 3rd DBA Meeting. Staff has met with individual property/business owners and will continue to do so through construction.
Expanded Options and Alternatives:
Approve the award as recommended. Approval will allow work to move forward in calendar year 2017; or, Reject approval of the award as recommended. This action would delay the project until next construction season. If rejection occurs, possible options include: a. Ask staff to reevaluate the recommendation; or b. Suspend or cancel the project completely.

Attachments:	CMAR Construction Agreement
	Exhibit B GMP
	RR&SS Program Schedule
	Context
	Vicinity Map

9.D.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:	Christine Cameron, Project Manager III
Date:	03/14/2017
Meeting Date:	04/18/2017


TITLE:
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).
RECOMMENDED ACTION:
1) Approve the construction contract with McDonald Brothers Construction in the amount of $1,637,898.50, and a contract time of 180 calendar days; 2) Approve Change Order Authority to the City Manager in the amount of $154,789.00 (10% of the contract amount, less allowance of $90,000.00); and 3) Authorize the City Manager to execute the necessary documents.
Executive Summary:
A contract award of $1,637,898.50 to McDonald Brothers Construction is proposed to construct the Mike's Pike Water and Sewer Improvement Project, which includes replacement of aging water and sewer mains and services, roadway pavement, curb, gutter, sidewalk, and street lights on Mike's Pike, Kendrick Street, Benton Avenue, and Phoenix Avenue. The project is planned for construction from May to November 2017. Please see attached context and vicinity map.
Financial Impact:
The Mike's Pike Improvement Project is funded by Utility Program budget appropriations in the amount of $100,000 for FY 2017 and anticipated FY 2018 funding in the amount of $2,250,000, Account #203-08-375-3367-0. Anticipated FY 18 funding will be covered by the Aging Sewer Replacement funds and Capacity fees. Core Campus, the developer of the HUB on Campus Flagstaff will be providing funding to cover the development’s share of expenditures for utilities and roadway improvements along the frontage of their property.
Policy Impact:
• No impact.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
*COUNCIL GOALS:* TRANSPORTATION AND OTHER PUBLIC INFRASTRUCTURE - Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.
Has There Been Previous Council Decision on This:
Council approved the on-call consultant contract, through which a consultant services contract for the design of the Mike's Pike Improvement Project was established with The WLB Group, Inc.
Options and Alternatives:
1. Approve the award as recommended. Approval will allow work to move forward in calendar year 2017 or, 2. Reject all bids. This action would delay the Project. If rejection occurs, possible options Include: a) Re-advertise the Project and open new bids; b) Suspend or cancel the project.
Background/History:
The Mike's Pike Improvement Project is located in downtown Flagstaff and includes work on Mike's Pike, Phoenix Avenue, Kendrick Street, and Benton Avenue. The project scope includes replacement of aging water and sewer mains and services, street asphalt reconstruction, and new curb, gutter, sidewalk, driveways, and streetlights. The Purchasing Section solicited for construction bids on March 6, 2017 on the City's website and on Purchasing's electronic bidding website, and the bid was advertised in the Arizona Daily Sun on March 12 and 19, 2017. Three bids were received by the opening date of March 29, 2017 and McDonald Brothers Construction was determined to be the lowest responsive and responsible bidder. A tabulation of bids is summarized below in Expanded Financial Considerations.
Key Considerations:
The project is planned and programmed in the Utilities' ten-year Capital expenditure program for aging infrastructure due to the age and condition of the facilities. The water main was constructed in 1906 and the sewer main was constructed in 1919. With the inception and development of the HUB on Campus Project, the Utilities Program investigated the opportunity to combine the projects to accomplish the work earlier during the HUB construction and cost share on the construction of the project. The City was able to advance the Mike's Pike infrastructure improvements in the planning schedule to coincide with the HUB project and expedite the utility and roadway construction during the building construction. The Core Campus developer will be contributing funding for the new construction improvements along the frontage of the development. Funded construction items include water and sewer mains, services, manholes, asphalt roadway, sidewalk, curb, gutter, and driveways. The future Rio de Flag Flood Control Project main line culvert is planned to be installed down Mike's Pike. Installation of the box structure will necessitate relocations of existing utilities that are in conflict with the future culvert. This project will relocate the water and sewer mains ahead of the construction of the Rio de Flag Project. There are several coordination items included in the construction contract due to the street traffic and nature of the businesses along Mike's Pike. The contractor is required to accommodate businesses during operating hours, keep a minimum one lane of traffic open at all times during normal business hours, and provide safe pedestrian access to buildings. Full road closures are only allowed from 10:30 pm to 6:00 am, which will keep NAIPTA transit in regular operation and reduce impacts. The City is aware that this project will impact the business and resident operations along the corridor and the Contractor and the City will work diligently to avoid and mitigate any issues that arise during construction. Included in the contract amount will be an allowance of $90,000.00. The allowance will be used for items of work that were unanticipated but necessary to complete the project. The Project Manager, Section Head and Division Head will have the authority to approve the use of the allowance. Change Order Authority establishes a dollar amount of $154,789.00 (10% of the contract amount, less allowance of $90,000.00) to provide the City Manager, on behalf of the Council, authority to amend the contract amount in response to unforeseen costs that are more than the contracted amount and in excess of the contract allowance.
Expanded Financial Considerations:
Below is a summary of bids received: Engineer's Estimate - $1,750,000.00 McDonald Brothers Construction - $1,637,898.50 Standard Construction - $1,885,256.00 Kinkaid Civil Construction - $1,929,568.75 The Mike's Pike Improvement Project is funded by Utility Program budget appropriations in the amount of $100,000 for FY 2017 and anticipated FY 2018 funding in the amount of $2,250,000. Account #203-08-375-3367-0. Anticipated FY 18 funding will be covered by the Aging Sewer Replacement funds and Capacity fees. Core Campus, the developer for the HUB on Campus Flagstaff will be providing funding to cover the development’s share of expenditures for utilities and roadway improvements along the frontage of their property.
Community Benefits and Considerations:
The community benefits of this project include the following: Updated utility mains and services New roadway and concrete improvements New pedestrian facilities New street lighting Early coordination of future Rio de Flag construction requirements Funding benefit from the Core Campus developer
Community Involvement:
Inform/Involve - In December 2016, City staff mailed an informational flyer to the surrounding neighborhood describing the project and inviting the community to a Public Open House to learn about the project and provide feed back. Staff held the open house on December 15 in City Hall. City Capital staff has also been conducting one-on-one contact through the neighborhood and will continue to coordinate the construction work and schedule throughout the duration of the project. The City has held on-going meetings with NAIPTA to minimize the impact of construction to their transit routes.
Expanded Options and Alternatives:
1) Approve the award as recommended. This would allow the Project to be constructed in 2017. 2) Reject all bids. This option would delay the construction start and possibly cause the work to span two construction seasons, which would include a winter shutdown with temporary improvements in place. The residents and community at large could have a significantly longer duration of impact from construction activities.

Attachments:	Construction Contract
	Mike's Pike Context map
	Mike's Pike Vicinity Map

9.E.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:
Date:	03/23/2017
Meeting Date:	04/18/2017


TITLE:
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.
RECOMMENDED ACTION:
Approval of two Lease Agreements under the original terms and conditions of the Master Lease as amended through the Fourth Amendment to the Lease Agreement with Pulliam I, LLC dated March 29, 2012; direct staff to prepare the lease forms and allow for immaterial changes with no reduction in rent; and authorize the City Manager to execute the final documents.
Executive Summary:
Pulliam I, LLC ("Lessee") is exercising its option as defined in the Fourth Amendment to the Lease Agreement. The Fourth Amendment to the Lease adopted by Council, March 6, 2012, Resolution No. 2012-07 (1) Extended the term of the Lease to April 30, 2085. (2) Provided an option for the Lessee to enter into additional Leases to develop the site under the same conditions of the Lease, until April 30, 2017.
Financial Impact:
Annual Rent: Lessee is proposing a different rental structure and Staff has not had an opportunity to determine the financial effect. Current Rent Structure: Rents are based on the square footage of the building envelope plus 6 1/2% of net base rents. Currently the City receives approximately $84,025 annually from existing leases Staff recommends approval of lease under the same terms as the current rental structure.
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Economic Development: Grow and strengthen a more equitable and resilient economy.
Has There Been Previous Council Decision on This:
Yes. Lease Agreement with Pulliam LLC approved by Council 6/16/1998, unanimous vote. Memorandum of Lease approved by Council 9/7/1999, unanimous vote. Lease Agreement with Pulliam II, LLC approved by Council 1/7/2003, unanimous vote. First Amendment to the Lease Agreement with Pulliam LLC and Pulliam II, LLC approved by Council 6/7/2005, unanimous vote. Lease Agreement with Pulliam III, LLC and Pulliam IV LLC approved by Council 7/5/2005, unanimous vote. Second Amendment to the Lease, signed by Mayor on June 21, 2005. Third Amendment to the Lease, signed by Mayor on October 31, 2007. Fourth Amendment to the Lease, approved by Council 3/06/2012 by Resolution No. 2012-07, unanimous vote.
Options and Alternatives:
1. Approve the Lease Agreements under the original terms and conditions of the Master Lease as amended through the Fourth Amendment with Pulliam I, LLC dated March 29, 2012, direct staff to prepare the lease forms and allow for immaterial changes with no reduction in rent, authorize the City Manager to execute the final documents. Lessee is exercising its legal option as defined in the Fourth Amendment; option expires on April 30, 2017. 2. Do not approve Lease Agreements. This option is not recommended due to legal concerns.
Background/History:
1998, the City entered into ("the Original Agreement") with Pulliam LLC for the development of Pulliam Airport Airpark AM Unit 02, Tract: 5B, located at 3051 West Shamrell Boulevard, parcel number 116-61-013. The Original Agreement was for the development of 21 acres to be developed one unit at a time in three-year increments. Four Amendments to the Lease approved by Council since 1998. Existing Lease allows for the development and lease of 25.58 acres of the site. The City is the land owner and has a ground lease on the site until April 30th, 2085. The parcel has been developed in stages since 1998. Currently there are four office buildings on the site under separate Lease Agreements, Pulliam II, LLC, Pulliam III, LLC, and Pulliam III, LLC and Pulliam IV, LLC. The City does not own the improvements on the land. Lessee has the option to enter into additional leases for the development of the site until April 30, 2017 Lessee is exercising its option. Lessee proposes Pulliam V, LLC and Pulliam VI, LL will be the lessees for purposes of the two leases being proposed. However, Arizona Corporation Commission records do not reflect that these entities exist at this time. City must contract with a legal entity.
Key Considerations:
The Lessee intends to develop a gas station and convenience store under one lease (proposed Pulliam V, LLC). This use would be of great benefit for the airport and rental car companies since the gas station would be in close proximity to the airport. This project has been a desire for the City for many years. The Lessee intends to develop an office building under the other lease (proposed Pulliam VI, LLC). The Master Lease does not require a commitment of a certain improvements. The proposed Leases therefore also would allow plans for improvements to change.
Expanded Financial Considerations:
By approving the additional leases the City will increase the revenues to the airport once improvements are constructed and open for business. The rent will be based on a price per square foot for the building footprint, not the entire leased area.
Community Benefits and Considerations:
Office space for business operations . Potential gas station and convenience store. Income stream for the airport.
Community Involvement:
Inform

Attachments:	Exhibit of Tract 5B
	Concept Map
	Fourth Amendment to the Lease
	Third Amendment to the Lease
	Second Amendment to the Lease
	First Amendment to the Lease
	Master Lease

9.F.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:
Co-Submitter:	Damian Gallegos
Date:	03/30/2017
Meeting Date:	04/18/2017


TITLE:
Consideration and Approval of Lease of City-Owned Property: Rental Car Concessions/Lease Agreement Extensions at the Flagstaff Pulliam Airport Terminal.
RECOMMENDED ACTION:
Approve the Rental Car Concessions/Lease Agreement Extensions with Avis Budget, Enterprise, Hertz, National, and Alamo.
Executive Summary:
On February 1, 2011, the Council entered into Rental Car Concessions/Lease Agreements ("leases") with Avis Budget, Enterprise, Hertz, National, and Alamo to provide rental car services at the Flagstaff Pulliam Airport Terminal ("airport"). The terms of the leases required that the rental car agencies pay a Concession Fee of 10% based on the monthly Gross Revenues. This has provided a significant revenue for the City. On or about February 1, 2014, the Council approved Amendment I, authorizing a three (3) year extension of the leases. The leases expired on February 1, 2017 with a temporary extension. This Amendment II will extend the terms of the leases five (5) years. Staff considered the interest of other rental car agencies when proposing the five (5) year extension. The terminal has limited spaces available, all counters are fully occupied. By adopting Amendment II, the City will continue to collect significant Concession Fees as ridership increases. The last bid was based first on counter and land space options. The highest bidder selected the first option. A percentage of gross from the bid was 10% of the gross from each company. Cars are not only rented by travelers flying into Flagstaff, but by local citizens.
Financial Impact:
The leases are a large revenue generator and since 2011, the market for rental cars at the airport has increased. Staff anticipates an increase in the revenues for the City, based on the historical growth of the current lease.
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Regional Plan Goal T.10. Strengthen and expand the role of Flagstaff Pulliam Airport as the dominant hub for passenger, air freight, public safety flights, and other services in Northern Arizona.
Has There Been Previous Council Decision on This:
In 2010, the City issued an Invitation for Bid for Rental Car Concessions - Flagstaff Pulliam Airport. Avis Budget, Enterprise, Hertz, National, and Alamo responded to the bid and went through the procurement process. On or about February 1, 2011, Staff went before Council who voted to approve the leases. On or about February 1, 2014 . Council voted to extend the leases an additional three (3) years.
Options and Alternatives:
Council can approve this lease extension, which will give six name brand car rental options to Flagstaff. This is the most we currently have office space for at the Airport Terminal. It would continue to provide a growing revenue source to operate the airport. Council could select individual lease extensions and refuse others. This option would reduce revenues produce and could have a complaint filed with the Federal Aviation Administration by the companies not selected. Council can reject this lease extension, and not provide rental cars to the flying public and Flagstaff Citizens. This would also substantially reduce the revenue generated to support the airport. This would require increased general fund support to operate the airport. Council could request a new bid process.
Background/History:
In or about 2010, Airport ridership was increasing and the Airport saw a need for rental car services. The Airport placed an Invitation for Bid which required, among other things, a Concession Fee of 10% of all monthly Gross Revenues. Through the procurement process, the City chose Avis Budget, Enterprise, Hertz, National, and Alamo to open rental counters at the Airport. On February 1, 2011, the City Council adopted the Leases. Then, on or about February 1, 2014, the City Council adopted Amendment I extending the term of the Leases another three (3) years. These are the largest rental car companies in the industry. They have consolidated to three main names, Avis/Budget, Hertz and Enterprise. Between these companies, they own Alamo, National, Thrifty and Dollar. The other smaller brands expressed that they would not do enough business in the Flagstaff market to be successful. This lease extension provides the most options to the citizens of Flagstaff. Under the agreement revenues come from a base rate on counter and land space. The agreement also provides a percentage of gross which grows with the amount of cars rented. Over time, the City has benefited from receipt of a substantial revenue based on the terms of these Leases. The City believes that ridership will grow and the use of the rental company's services will also grow.
Key Considerations:
The extension of the Leases for five (5) years will: Assure car rental services for the public. Assure continued revenue that will grow with increased passenger service at the airport. Reduce costs because the rental car companies will not have to construct new counters.
Community Benefits and Considerations:
Rental cars at the Airport are not just rented by the flying visitors. Many local citizens rent from the Airport for various reasons. This Lease Amendment II gives flying visitors and citizens multiple options for rental car agencies at one location. Currently there are five brands available with this Amendment a sixth brand will be added. Multiple brands gives the public more rental car options, at a competitive price.

Attachments:	Hertz Amendment
	Budget Amendment
	Alamo Amendment
	Enterprise Amendment

10.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:	Adam Miele, Airport Program Manager
Date:	03/31/2017
Meeting Date:	04/18/2017


TITLE:
Consideration and Approval of Contract Amendment 1: Core Services Maintenance Facility – Guaranteed Maximum Price (GMP) #1 for the Phase I construction portion of Work.
RECOMMENDED ACTION:
1) 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 2) Authorize the City Manager to execute the necessary documents.
Executive Summary:
Award of this Design-Build Contract GMP Amendment No. 1 to the fully executed Design-Build Agreement will authorize the construction phase services for the Phase 1 portion of Work of the new Core Services Maintenance Facility. The Phase 1 portion of Work will consist of bringing off-site utilities to the site, improvements (roadway winding) to Route 66, site grading and onsite wet utilities. The new Core Services Maintenance Facility will bring together several core services (Streets, Solid Waste, Fleet and Public Works Administration) into one centralized location (currently these services are spread throughout two different facilities).
Financial Impact:
In the Fiscal Year 2017 budget, the City appropriated $21,280,899 in account no. 406-09-424-3276-3-4444 for the Core Services Maintenance Facility. The Utility Fund also has budgeted $1,400,000 in FY2017 and proposed FY2018 budget to fund a portion of the off site utilities and onsite wet utilities improvement in account no. 202-08-370-3350-0 and 203-08-375-3227-0.
Policy Impact:
Approval of this Design-Build Contract GMP Amendment No. 1 will ensure the level of service and programs offered to the community is maintained for the future.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Transportation and other public infrastructure; Approval of the development of the new Core Services Maintenance Facility will provide support of the delivery of core City services and programs including: street maintenance, snow plowing and clearing operations, drainage maintenance, pot hole and side walk repair and street sweeping; residential and commercial trash and recycling collection, bulking trash collection; maintenance of all City vehicles and equipment, including fire, police, streets, solid waste, and water and wastewater department vehicles.
Has There Been Previous Council Decision on This:
Yes, on numerous occasions: In 2016, Council approved the pre-construction / design phase services for the programing and preliminary design documents for the construction of the project; In 2014, Council reinstated the $2.50 landfill fee to aid with the funding; In 2012, the citizens of Flagstaff passed bond proposition 406 authorizing the City to issue up to $14,000,000 in general obligation bonds; In 2010, Council extended the collection fee (suspended in 2012) and approved proceeding with bond initiative; and In 2008, Staff provided Council with a list of alternative site locations, facility space needs, and a conceptual layout plan. Staff requested a renewal of the fee until the project could be completed. Council approved the extension of the $2.50 fee for another year instructing staff to produce 1) a property/location selection; 2) conceptual site plan development; and 3) preliminary cost estimate.
Options and Alternatives:
1. Authorize the acceptance of the Design-Build Contract Amendment and fee, for phase #1 construction of the Core Services Maintenance Facility from Core Construction. 2. Reject the acceptance of the Design-Build Contract Amendment and fee, for phase #1 construction of the Core Services Maintenance Facility from Core Construction. 3. Reject the DB Contract Amendment and continue existing operations in the existing facilities.
Background/History:
The existing facility is located at 419 N. Mogollon, Flagstaff, Arizona. This facility was originally built as a horse barn for the Army Corps of Engineers and was later purchased by the City and used as a Public Works yard. Over the years, there have been numerous structures built on this property, as growth dictated. The existing facility is not adequate to maintain the numerous vehicles and equipment necessary to provide core services. A new Core Services Maintenance Facility would also provide an indoor space for all fleet maintenance repairs, some of which are currently performed outdoors in inclement weather, including snow. The City has needed a new Core Services Maintenance Facility for many years. The City has outgrown the existing facility and core service operations are scattered throughout the City. In 2010, Council approved a bond initiative to construct a new facility on McAllister Ranch located on West Rt. 66. The bond question was for a total dollar amount of $42 million to build the new facility, which included all new infrastructure (e.g., water, sewer, electricity, as well as Rt. 66 road improvements for traffic flow). The citizens of Flagstaff did not approve this bond measure. At the April 2012 Budget Retreat, the project was discussed and Council approved setting budget authority for the project. The Council, then, voted on July 17, 2012, to approve the measure for a November election through Resolution 2012-30. The citizens of Flagstaff approved a $14 million authorization to be repaid through secondary property taxes.
Key Considerations:
The City has developed preliminary construction documents that are consistent to findings through the programing portion of current needs for the new Core Services Maintenance Facility. Provisions have been made in the preliminary construction documents for expansion of the buildings in the future if needed. The current scope of the project would relocate Streets, Solid Waste, Fleet and Public Works Administration..
Expanded Financial Considerations:
The City will be able to operate from a new Core Services Maintenance Facility in a more cost effective manner by providing City services and programs from a focused location on the west side of town where private and commercial development is currently extensive. The Agreement includes an owner's contingency (to be approved by owner for authorization) to cover the potential cost of unanticipated or additional work which may be required during construction. Project funds will be provided through the issuance of general obligation debt repaid through secondary property tax ($14,000,000), revenue debt repaid through a dedicated landfill fee ($5,000,000), solid waste revenues and revenue transfers from other funds including General Fund, Transportation Fund, and Highway User Revenue Fund (totaling $4,000,000). As well as $1,400,000 from Water and Wastewater Utilities Fund for a portion of the onsite and offsite utility improvements.
Community Benefits and Considerations:
The City will benefit in numerous ways with the completion of this project. There will be a consolidation of facility resources, and thus, efficiency in these services and programs the City can provide citizens. This new Core Services Maintenance Facility will increase the capacity for the following services: Streets, Parks and Facilities (equipment and materials storage) as well as consolidating the service personnel for Streets, Fleet Services, Solid Waste Collections and Public Works Administration.
Community Involvement:
Consult – The City has provided numerous work sessions and agendized Council sessions to discuss the progress in the development of the Core Services Maintenance Facility. Empower - The citizens of Flagstaff approved the 2012 bond thereby authorizing $14 million dollars in funding to be used for this project.
Expanded Options and Alternatives:
1. Authorize the acceptance of the Design-Build Contract Amendment and fee, for phase #1 construction of the Core Maintenance Facility from Core Construction. 2. Reject the acceptance of the Design-Build Contract Amendment and fee, for phase #1 construction of the Core Maintenance Facility from Core Construction. 3. Reject the Design-Build Contract Amendment and continue existing operations in the existing facilities.

Attachments:	Contract Amendment 1
	Amendment Exhibits A-D

10.B.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:
Date:	03/23/2017
Meeting Date:	04/18/2017


TITLE:
Consideration of Insurance Premium Renewals: Workers' Compensation, Property and General Liability Policies.
RECOMMENDED ACTION:
1) Approve the renewal of our Workers' Compensation agreement with Copperpoint Mutual with an estimated annual cost of $576,000. 2) Approve the renewal of our Property insurance agreement with A.I.G. with an estimated annual cost of $199,321. 3) 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.
Executive Summary:
By renewing our Workers Compensation coverage with CopperPoint Mutual, the City will save an estimated $154,000 next fiscal period over this fiscal period. Since policy ending 6/30/14 we have saved over $1,150,000 in renewal premium verses premium paid in fiscal 2013-2014 not withstanding an increase in exposures. The estimated annual premium for 2016-2017 is less than the total paid during the 2003-2004 fiscal period. There has been no change in coverage. By renewing our property coverage with AIG the City will save an estimated $2,191 next fiscal period over this fiscal period. Although we have added additional property and AIG has included enhanced coverage this year, the policy premium has been reduced. By renewing our General Liability, Auto, Umbrella and associated lines of insurance coverage with Travelers Insurance Company the City will expend $25,223 more next fiscal period over this fiscal period. This is primarily due to an adverse loss the City experience this year in relation to a January 2011 claim. There has been no change in coverage. We have saved $1,400,000 in renewal premium verses premium paid in fiscal 2013-2014 on our General Liability, Auto, Property and related coverage not withstanding an increase in exposures.
Financial Impact:
The net fiscal impact of insuring all lines of coverage is a reduction in expenditures next fiscal year by $131,000.
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
None
Has There Been Previous Council Decision on This:
No
Background/History:
The City of is required to carry Workers' Compensation coverage per Arizona Statute. The City is currently insured with Copperpoint Mutual, formerly SCF of Arizona and have been for over ten years. Because of the efforts of our employees and the subsequent reduction in injuries, we have able to secure a reduction in each of our renewals over the last four years. The City of Flagstaff carries insurance to protect the City from unexpected financial loss. Main coverage areas include auto, general liability, excess liability ($20 million), property coverage, crime, cyber, airport liability in the amount of $40 million, flood and specific properties, employers liability, errors and omission coverage, and other supplemental coverages as appropriate. Our current carrier for most lines of coverage is Travelers Insurance. For our property coverage, we are insured with AIG. The City has a $75,000 self insured retention on both general and auto liability claims. This self insured retention applies to both legal fees incurred as well as settlement amounts. Recent adverse claim activity from a January 2011 claim, is likely to cause a modest increase in the general liability portion of our renewal in FY 2018.

Attachments:

Renewal Presentation

10.C.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:	Christine Cameron, Project Manager III
Date:	03/15/2017
Meeting Date:	04/18/2017


TITLE:
Consideration and Adoption of Resolution No. 2017-15: Grant Intergovernmental Agreement Amendment #2 for the Pine Knoll Drive Safe Routes to School FUTS Project.
RECOMMENDED ACTION:
1) Read Resolution No. 2017-15 by title only 2) City Clerk reads Resolution No. 2017-15 by title only 3) Adopt Resolution No. 2017-15
Executive Summary:
Approval of Amendment #2 of the Intergovernmental Agreement (IGA) 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. Please see attached context and vicinity maps for reference.
Financial Impact:
City funding of $155,425.00 will be allocated from the Road Repair and Street Safety Program fund (Account #046-06-116-3359-6) which has an available budget of $155,425.00 in FY 17 and $26,932.00 will be allocated from the Road Repair and Street Safety Program fund (Account #046-05-116-3331-6) which has an available budget of $262,448.28 in FY 17. The dedicated Federal (ADOT) funding amount for construction is $377,643.
Connection to Council Goal and/or Regional Plan:
Council Goals: TRANSPORTATION AND OTHER PUBLIC INFRASTRUCTURE - Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.
Has There Been Previous Council Decision on This:
Yes, Council approved the original IGA with the Arizona Department of Transportation (ADOT) at the February 5, 2013 Council Meeting and approved Amendment #1 to the IGA at the October 1, 2013 Council Meeting.
Options and Alternatives:
1. Adopt Resolution No. 2017-15 approving Amendment #2 as recommended. Approval will allow for the project to be completed in calendar year 2017. 2. Not adopt Resolution No. 2017-15, rejecting Amendment #2. If rejection occurs, possible options include: a) Remove the additional scope out of the project and attempt to reduce the costs to the previously approved funding amount. b) Return the grant funding to ADOT and cancel the project.
Background/History:
The Pine Knoll Flagstaff Urban Trail System (FUTS) trail project is located between South San Francisco Street and Lone Tree Road in South Flagstaff and is adjacent to Northern Arizona University and Flagstaff Unified School District (FUSD) Kinsey School. Project improvements include installation of a 10' FUTS trail on the north side of Pine Knoll Drive and new roadway improvements including asphalt reconstruction, curb/gutter, and bicycle lanes. The original IGA (SF01201C/01D/02C) was approved by City Council on February 5, 2013 in the amount of $400,128 for design and construction. Amendment #1 was approved on October 1, 2013 in the amount of $90,897 which approved additional costs for the design consultant services and that funding was provided by federal funds at no expense to the City. The additional funding requested today will provide for full removal and replacement of roadway asphalt and a widened intersection at Lone Tree Road. These improvements are City-driven requests for scope expansion due to the degraded condition of the roadway and the need for improved operations at the intersection. The original IGA states in Scope of Work, Section 2.d. that the City will be entirely responsible for all costs incurred in performing and accomplishing the work that exceed the federal funds available. The City has planned and budgeted the requested funds to adhere to the agreement with ADOT.
Key Considerations:
The expanded scope of the project will provide several necessary improvements for the City. The existing roadway asphalt is in poor condition and will be replaced with new asphalt and base materials that conform to current standards and will provide for a 20-year life expectancy for the roadway. Public Works evaluated the roadway condition in 2015 and established a rating of 47 (out of 100), which falls within Streets designation for reconstruction. Also, there will be an additional lane constructed on Pine Knoll that will receive south bound traffic from Lone Tree that is turning west. Currently, there is one lane that receives all turning traffic from north bound and south bound Lone Tree. After the improvements are constructed there will be two lanes that receive this traffic and this will reduce queuing and merging conflicts. Cost increases above the original estimate are also a general result of finalizing design and construction work items and developing current cost estimates. Including these improvements with this project will utilize the existing construction effort to provide better economy of work and reduce impacts of a second construction project to the adjacent agencies and the community.
Expanded Financial Considerations:
City funding of $155,425.00 will be allocated from the Road Repair and Street Safety Program fund (Account #046-06-116-3359-6) which has an available budget of $155,425.00 in FY 17 and City funding of $27,575.00 will be allocated from the Road Repair and Street Safety Program fund (Account #046-05-116-3331-6) which has an available budget of $262,448.28 in FY 17. Any additional overages during the course of construction that the City is responsible for will be provided by the Road Repair and Street Safety Program fund (Account# 046-05-116-3331-6).
Community Benefits and Considerations:
The Pine Knoll FUTS Project will increase safety for Kinsey School, Northern Arizona University (NAU), and the general community. It will also provide continuity between the existing San Francisco Street FUTS and the Lone Tree Road FUTS trails.
Community Involvement:
This project is an element in the Flagstaff Urban Trail System Plan. Planned projects are presented and prioritized annually at the Flagstaff Bicycle Advisory Board, Pedestrian Advisory Board, Open Spaces Commission, and the Transportation Commission. Capital staff has coordinated the design and construction expectations with both NAU and Kinsey School.
Expanded Options and Alternatives:
1. Approve Amendment #2 as recommended. Approval will allow for the project to be completed in calendar year 2017. 2. Reject Amendment #2. If rejection occurs, possible options include: a) Remove the additional scope out of the project and attempt to reduce the costs to the previously approved funding amount. This will most likely necessitate additional funding to re-scope and re-design the project. b) Return the project grant funding to ADOT and cancel the project. This will remove the improvement benefit to the community and forfeit the existing agreement with ADOT.

Attachments:	Res. 2017-15
	Pine Knoll IGA Amendment #2
	Pine Knoll Context Map
	Pine Knoll Vicinity Map

10.D.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:
Date:	03/24/2017
Meeting Date:	04/18/2017


TITLE:
Consideration and Approval of Contract: Intergovernmental Agreement Between the City of Flagstaff and the City of Phoenix *(related to Business Intelligence System)*
RECOMMENDED ACTION:
Approve Intergovernmental Agreement with the City of Phoenix effective May 1, 2017 for the use of the Business Intelligence System.
Executive Summary:
Beginning in July 2016 the Arizona Department of Revenue (ADOR) enabled our 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.
Financial Impact:
The cost of this IGA is an initial cost of $8,000 and annual cost of $1,450. The budget for this contract is $15,000 in account number 001-02-033-0120-1-4231.
Policy Impact:
N/A
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Team Flagstaff Goal - Strategic priority #3: Foster a resilient and economically prosperous city 1. Enhance the organization’s fiscal stability and resourcefulness.
Has There Been Previous Council Decision on This:
No
Options and Alternatives:
Approve the IGA; Do not approve the IGA, relying upon reports provided by Arizona Department of Revenue for the tracking of receipt of revenues due to the City of Flagstaff.
Background/History:
In 2013, the Arizona Legislature adopted a law requiring the Arizona Department of Revenue (ADOR) to administer and collect all local transaction privilege, use and licensing taxes, in addition to all state taxes (a single point of return). Starting January 1, 2017 ADOR is administering all local taxes. All businesses now must file both state and local tax returns with ADOR. The City of Phoenix has developed a Business Intelligence System (System) to improve tracking of municipal tax data furnished by ADOR since July 2016. This proposed IGA allows Flagstaff access to the System, whereby staff will be able to compile statistical reports and compile fiscal analysis of funds disbursed to the City from ADOR collections. These reports are able to be compiled by disbursement periods, North American Industry Classification System (NAICS) codes, and align with current revenue practices.
Key Considerations:
The proposed IGA clarifies the responsibilities of the City of Phoenix and the City of Flagstaff related to the Business Intelligence System. This partnership allows for timely and accurate tracking of receipt and disbursements of transaction privilege taxes. City of Phoenix requires the form of IGA as submitted.
Expanded Financial Considerations:
None
Community Benefits and Considerations:
This will improve the efficiency of revenue reporting as it pertains to transaction privilege taxes collected by ADOR.
Community Involvement:
Inform
Expanded Options and Alternatives:
None

Attachments:

Phoenix BIS IGA

10.E.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:
Date:	03/20/2017
Meeting Date:	04/18/2017


TITLE:
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.
RECOMMENDED ACTION:
1) Read Resolution No. 2017-14 by title only 2) City Clerk reads Resolution No. 2017-14 by title only (if approved above) 3) Adopt Resolution No.2017-14
Executive Summary:
The property owner located at 420 W. Havasupai Rd., Assessor Parcel No. 100-02-083A has requested that the City abandon the vacated water line easement that encumbers the property. The purpose of the Resolution is to unencumber all properties currently encumbered by the water line easements that are no longer in use.
Financial Impact:
There is no financial impact to the City of Flagstaff.
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Council Goal: Economic Development- Grow and strengthen a more equitable and resilient economy.
Has There Been Previous Council Decision on This:
No
Options and Alternatives:
Option 1: Adopt the Resolution to abandon the vacated water line easements. Option 2: Do not adopt the Resolution to abandon the vacated water line easements.
Background/History:
In 1926 the City of Flagstaff acquired a perpetual water pipeline easement from Coconino County to serve the Town of Flagstaff, Document No. 324 Page 256. This pipeline crossed over and under land that is now the Coconino Estates Subdivision. In 1954 an additional easement was acquired, Document No. 105 Page 156, and crossed over and under parcels located in the Antelope Valley Subdivision Units 1 and 2, and the Kaibab Plaza Subdivision Units 1, 2 and 3. These water pipelines were vacated many years ago and are no longer in use, nor will they be needed in the future. The City of Flagstaff Utilities Department has evaluated this request and has approved the abandonment of the easements.
Key Considerations:
By abandoning the vacated easement the private properties will be unencumbered from the easement restrictions, which may allow additional development and expansion on the private lots.
Community Benefits and Considerations:
Unencumbering private property enhances property values and the ability to further improve and develop a parcel.
Community Involvement:
Inform

Attachments:	Easement document
	Easement document 2
	Map of Abandonment DKT 324, PG. 256
	Map of Abandonment DKT 105, PG. 156
	Context Map
	Utility Clearance
	Res. 2017-14

11.A.

CITY OF FLAGSTAFF

STAFF SUMMARY REPORT

To:	The Honorable Mayor and Council
From:	Anja Wendel, Senior Assistant City Attorney AW
Co-Submitter:	Ladd Vagen, IT Director
Co-Submitter:	Anja Wendel
Date:	04/06/2017
Meeting Date:	04/18/2017


TITLE:
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)*
RECOMMENDED ACTION:
1) Continue Public Hearing/Close Public Hearing 2) Read Ordinance No. 2017-04 by title only for the final time 3) City Clerk reads Ordinance No. 2017-04 by title only (if approved above) 4) Adopt Ordinance No. 2017-04 5) Read Resolution No. 2017-11 by title only 6) City Clerk reads Resolution No. 2017-11 by title only (if approved above) 7) Adopt Resolution No. 2017-11
Executive Summary:
The City has a Cable License Agreement with NPG Cable, LLC doing business as Suddenlink ("NPG"). NPG has been providing cable services to the Flagstaff community since 1995. The current license was issued in 2007, was set to expire December 31, 2016, and has been renewed on an interim basis through August 31, 2017. NPG is seeking to renew the license for at least a 10 year term. The license allows NPG to construct, install, operate and maintain a cable services system in City rights-of-way. Also by virtue of federal and/or state laws, NPG may use the same system to provide internet and telecommunications services without an additional license. NPG pays the City an annual license fee of 5% of gross revenues from cable services as consideration for use of City rights-of-way. City staff recommends that the City approve a renewal license with NPG for at least a ten (10) year term.
Financial Impact:
NPG pays the City an annual license fee of 5% of gross revenues from cable services in the Flagstaff community.
Policy Impact:
None.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Council Goals 2017-2019: TRANSPORTATION AND OTHER PUBLIC INFRASTRUCTURE Deliver quality community assets... Team Flagstaff Strategic Plan 2017: Strategic Priority #3: Foster a resilient and economically prosperous city 2. Deliver outstanding service through a healthy environment, resources and infrastructure. Regional Plan: Policy ED 3.9 Develop infrastructure so that the community has access to high-speed internet and telecommunications.
Has There Been Previous Council Decision on This:
1995: City issued cable license agreement to NPG 2007: City approved renewal license with NPG through December 31, 2016 December 2016: City approved interim renewal license (first) through April 30, 2017 March 2017: City approved interim renewal license (second) through August 31, 2017 March 2017: City Council Work Session related to proposed cable ordinance and renewal license
Options and Alternatives:
Ordinance No. 2017-04: 1. Approve 2. Approve with amendments other than those proposed 3. Do not approve. Some of the proposed amendments are required to conform to state law, e.g. definition of gross revenues. Resolution No. 2017-11: 1. Approve 2. Approve with different terms and conditions of Cable License Agreement 3. Do not approve (not recommended because of operational uncertainty, loss of fees, legal risk) Some of the proposed terms and conditions are required to conform to state law, e.g. definition of gross revenues, wifi radio and microcell equipment.
Background/History:
The proposed draft ordinance, resolution, and renewal cable license agreement will be included in the final agenda packet for the April 4, 2017 Council Meeting. City staff is seeking Council direction at the March 28, 2017 Council Work Session related to possible code changes, and possible changes in the terms and conditions the cable license agreement upon renewal. Most of the possible changes are identified in the Cable Licensing 101 document (attached).
Key Considerations:
Suddenlink has the qualifications, finances, and equipment to operate a cable system in the City.
Community Benefits and Considerations:
Suddenlink plays an important role in the community providing entertainment and communications.
Community Involvement:
Community input as to the proposed renewal license agreement is sought at the public hearing on April 4, 2017. Notice of the public hearing was posted on the City website and advertised in the local newspaper.

Attachments:	2007 Cable License
	Cable Licensing 101
	Channel Lineup in April
	Line Extension Example
	Ord. 2017-04
	Res. 2017-11
	Agreement

Attachments:	Dara Thai - Letter to Applicant
	Hearing Procedures
	Series 12 Description
	Dara Thai - PD Memo
	Dara Thai - Code Memo
	Dara Thai - Map


TITLE
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.
RECOMMENDED ACTION:
Council direction.
EXECUTIVE SUMMARY:
Rule 4.01, Procedures for Preparation of Council Agendas, of the City of Flagstaff City Council Rules of Procedure outlines the process for bringing items forward to a future agenda. Councilmember McCarthy has requested this item be placed on an agenda under Future Agenda Item Requests (F.A.I.R.) to determine if there is another member of Council interested in placing it on a future agenda.
INFORMATION:


TITLE
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.
RECOMMENDED ACTION:
Council direction.
EXECUTIVE SUMMARY:
Rule 4.01, Procedures for Preparation of Council Agendas, of the City of Flagstaff City Council Rules of Procedure outlines the process for bringing items forward to a future agenda. Councilmember Odegaard has requested this item be placed on an agenda under Future Agenda Item Requests (F.A.I.R.) to determine if there is another member of Council interested in placing it on a future agenda.
INFORMATION: