City Council - Regular Meeting

All right, we're ready to get started. Today is Tuesday, June 2nd, 2026. This is the City Council's regular meeting. I'm calling this meeting to order. Can we have roll call?

Mayor Daggett? Here. Vice Mayor Sweet? Here. Council Member Aslan? Here. Council Member Garcia? Here. Council Member House? Present. Council Member Matthews? Here. Council Member Spence?

Here.

Councilmember Matthews, would you lead us in the Pledge of Allegiance?

Please stand if you're able.

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Councilmember Garcia, would you read our mission statement?

Yes, it would be my pleasure. The mission of the city of Flagstaff is to protect and enhance the quality of life for all.

And Council Member Aslan.

The Flagstaff City Council humbly acknowledges the ancestral homelands of this area's indigenous nations and original stewards. These lands, still inhabited by native descendants, border mountains sacred to indigenous peoples. We honor them, their legacies, their traditions, and their continued contributions. We celebrate their past, present, and future generations who will ever know this place as home.

Thank you. Next up is open call to the public, which enables the public to address us about any item that is not on the prepared agenda. There's a timer up here, and you have three minutes. And because whatever you are going to speak to us about has not been agendized, we can't have a back and forth with you. But if need be, we can ask staff to follow up with you. First up, we have Senator Wendy Rogers.

Good afternoon, Madam Mayor, members. I'm here in town. We were on the floor of the Senate yesterday, and we'll be back in session next week, hopefully wrapping up with the budget at the end of the week. I have good news. Two of my bills were signed by the governor. One is the so-called squatter bill, which we've been working on for three years, and this enables a homeowner to get squatters evicted out of property much more quickly. I understand this may not be as much of a problem here in Flagstaff, although it's a statewide bill and it's applicable in terms of the fact that sometimes when people go on vacation, they come home and there are squatters at their property. And up until now, it's taken weeks and weeks to get them out. So we had wonderful collaboration among sheriffs, police, constables, and real estate agents to come together and put a bill together that enables a homeowner to get the squatters out very quickly. And yesterday I hosted a press conference at the Capitol and we had all of those stakeholders involved, including a victim who articulately stated how she had had, and she was a realtor, had had squatters in the home and they stole her identity. They sold the house out from under her. It was a horrible situation. So this bill that the governor has signed that I sponsored will ameliorate a lot of that. The second bill she signed, which is really great also, is what I call the Rural Blight Bill. This was championed by Gila County. which is a small county, just has three county supervisors, one of whom came in yesterday to talk with me about it and give me an award actually for having worked on it. What it says is if you have a property near you in a rural environment that is infested with rats, has trash, has been not kept up, and the property owner who pays The property tax is usually far away and doesn't realize this. He or she may be paying property tax every year, but not being accountable for the quality of how the property is kept up. Now, instead of the county having to bear the financial burden to bring it back up to restoration, it'll be on the property owner, which is right and just. And so that bill was signed. Thank you, always great to update you and I love Flagstaff. Thank you, Senator. Jessica Drum.

Good afternoon, Mayor, Vice Mayor, Council Members. My name is Jessica Drum and I am a Community Relations Manager at Northern Arizona Healthcare. And today I wanted to come and thank you for your proclamation last month, acknowledging May as Mental Health Awareness Month. And as you know, as part of that, or as part of the proclamation, our team at NIH put together a number of amazing events throughout the community in May to raise awareness about mental health and the number of resources that are available throughout our community. There were more than 36 events in May, including a few right here at City Hall. So we wanted to first thank you and our other partners for their support for those events. Those partners include our title sponsor, Health First Foundation of Northern Arizona. And we also had sponsorships from Arizona Complete Health, the Arizona Community Foundation, Cambrian Health Partners, Charlie Health, and Cultivate Counseling. And due to all of the community's support from sponsors to host events and spread awareness, more than 1,000 community members participated in those various events, which ranged from petting puppies here at City Hall a couple of weeks ago, and I understand one of those puppies even found a home, which is fantastic, to stress reduction, to yoga and spinning classes in support of the brain-body connection, to just a wide range of opportunities to learn more about specific counseling opportunities and so much more. And some of those 36 events also served as fundraisers for NIH's First Responder Counseling Service, which supports our Guardian Air Transport and Guardian Medical Transport colleagues with confidential counseling, crisis debriefing, and other critical mental health resources. Launched in 2023, that program helps these community heroes process the trauma they face daily and maintain their own well-being. We've heard directly from those participants that it has saved lives, strengthened their family relationships, and helped them stay in one of the toughest jobs in our community. And I'm really proud to share that through those fundraising efforts and the sale of over 860 of the Mental Health Matters t-shirts, thank you to those of you who both purchased them and sold the shirts, our community raised nearly $67,000 in support of the first responder counseling services. So thank you so much for all of your support during this important month. We look forward to expanding the Mental Health Matters Programming next year and partnering with you in the future.

Thank you so much Thank you Stacey is the clock working Or is it on on the speaker side it is working I'm not quite sure why it's not working for you guys. But yes, it is working for what the speaker sees great Winnie Anenga

Good afternoon. I'm writing in regard to a letter I received that is dated May 15th, 2026, which I received at the end of last week, and it asks us to turn in comments regarding the Butler Fourth Street improvements. I'm coming today to say that I believe it is precipitate to ask us to submit comments by June 15th since there has been no public hearing regarding the improvements, specifically. One of the problems I have is this map which you guys can look at and I can give you a copy of it which shows the Switzer wash on the west side of I'm Pardon me, but shows the urban trail on the west side of Switzer wash when in fact is on the east side and this map right here Which is in the letter? Shows if I bring it up here larger map and it seems to go right down inside my property and on the side of it and the back of it. I'd sure like to know to what extent my property is involved. I think that's a reasonable question before I have to provide any comments. Furthermore, where specifically will the culverts be installed at 4th and Butler? All the letter says is there. And are they going to be installed in Switzer Wash? Are they going to be installed further up near Butler? And importantly, what will be the status of Switzer Wash post-construction? Will that still be a flood plain, or will construction be allowed there? The reason I got the invitations to participate is that my house, the bottom of my house is within 300 feet of all this that's happening, and it seems to me I should be consulted as a citizen, as a voting member of this community. Where will the construction easements for the Butler project be? It says they're going to be construction easements, but not where. Where will the retaining walls be? It looks like part of my property might be needed for the widening as it moves up the hill. And my property is the one you may be aware of that was hit by a police vehicle last September. So I'm having to rebuild one wall, and I'm just wondering if there's going to be some other wall on my property, and I don't know. What new right of way from adjacent private property is needed? Because the letter says that it's needed, but it doesn't say where. have expected Contractor use areas which are identified in the letter been identified I'd sure like to know how close those are to my property. I We have all the noise from all the construction that's going up there on the monstrosity on the hill as well as West on Butler and And will a pedestrian crosswalk be constructed at the intersection of Senagua Heights Drive and Butler? Because those of us who live there have grave difficulty crossing that road. It's dangerous. I said already the maps are wrong, and I want to emphasize how important it is for us to know the status of Switzer Wash. So it is precipitate to ask for comments without a hearing. In fact, it is irresponsible, I believe. Thank you.

Thank you.

Mayor Council, we'll have staff reach out to Mrs. Anenga with her concerns.

Thank you. Is there another presentation coming about the construction work at that intersection and east?

Mayor Council, I don't know if we have it scheduled on the working calendar, but it will be coming back to Council, yes.

Thank you. Dapper Dre.

Afternoon, everybody. Good to see you. Hope this summer's starting off right for everybody. I didn't get to make it last month for bike month. I hope everybody had a good bike month. If you rode a bike, clearly you made it through that because you're still here. But I wanted to talk about the anniversary of five years. This weekend was the fifth year anniversary of the tragic bike party crash that happened in 2021. Joanna Wheaton was a fatality and I was a casualty of a system that is inherently dangerous to any type of road user except for another car. And even then, cars kill people and other cars all the time. For at least the last 80 years, we have done everything in our power, planning, and purse to allow cars to go the fastest they can at the expense of all other modes. The idea of traffic and congestion boils down to one core entitled complaint, and that is, car goes slow. Can we have wider sidewalks and protected bike lanes? But car goes slow. What about streets that make sense to pedestrianize and direct routes from modes other than cars? Yeah, but if we spend that money, and cut off this route, it might make cars go slow and we can't have that. Hey voters, we have yet another tax percentage that we can add on so that we can build $100 million worth of future liability and maintenance so that cars can go faster for a little while and then they'll go slow because of induced demand usage. Ooh, cars go fast, hell yeah, let's do that. We continue to write and talk and plan That Flagstaff wants less car dependence and more multimodality infrastructure, yet any time it's brought to the table, it's too expensive. Got to wait for a matching grant. When most projects total less than $5 million for significant pedestrian and walking improvement, and an overpass, $143 million for Lone Tree, or JW Powell Extension, $23 million for homes and residents that don't exist at the moment, always gets priority, and no one bats an eye at the price tag. The downtown Bollard project, which I approve of, It's done to full capacity. It should be three phases and not just two. If you extend it to Beaver and a little bit of LaRue, it's gonna last you a lot longer time. It'll affect thousands of eventual millions of downtown pedestrians, and I guarantee you at least one of the presentation when someone has muttered, well, it comes at great expense. Relative to what? I guarantee you all your plans, CMP, ATMP, regional plans, Safe Streets Master Plan, Climate Emergency, Affordable Housing, Downtown Vision Plan, Downtown Mile, numerous other plans, We mentioned in the top three transportation listings, walking, biking, multimobility should be safe and connected. And yet, when asked to give them the opportunity, very little support. They asked me, Dapper Dre, did it cost you an arm and a leg to sponsor these downtown street closures? I've only invested $12,000 of my own money to do that. And yet, the city could help out if they wanted to. Let's get some bollards in. Let's do some other stuff that help out pedestrians and cyclists. Thank you.

Thank you. Nan Thaler.

Good afternoon. I'm Nan Thaler and I'm also here because of the Butler and Forth improvement plan. And so I have a concern just because we get a lot of truck traffic there and now with the increased population density occurring both on you know, both sides of Butler. I haven't received any information about what the retaining wall is going to be like, other than that there is going to be one, what kind of noise mitigation is going to be in the area. And I also received one of these. It's called a scoping letter on May 15th because of proximity to Butler, the property proximity to Butler. So, you know, I just would like to see a plan on what that is, what it looks like physically with a map that's much more detailed than what we've had in the past. So thank you.

Thank you. And staff will contact you as well, Nan, so that they can show you the plans and discuss them with you. Okay, next up is proclamations and recognitions. We have a proclamation for Gun Violence Awareness Day. If those of you who are here for that would join us at the end of the dais.

Come up as high as you want to be.

Whereas every day in the United States, nearly 130 people are killed by gun violence, and more than 200 are shot and wounded, with an average of more than 19,000 gun homicides every year. And people in the United States are 26 times more likely to die by gun violence than people in other high-income countries. And whereas Arizona has 1,400 gun deaths every year with a rate of 18 deaths per 100,000 people, It's a crisis that costs the state $15.9 billion each year. Arizona has the 17th highest rate of gun deaths in our country. And whereas cities across the nation, including Flagstaff, are working to end the senseless violence with evidence-based solutions, Whereas support for the Second Amendment, the Second Amendment rights of law-abiding citizens goes together with keeping guns away from those who are a danger to themselves or to others. And whereas, in 2013, Hadiyah Pendleton was tragically shot and killed at age 15. And on June 5th, 2026, to recognize her 29th birthday, People across the United States will recognize National Gun Violence Awareness Day. That's Friday of this week. And we'll wear orange in tribute to Hedayah and other victims of gun violence. along with their loved ones. Whereas the idea was inspired by a group of Hedaya's friends who asked their classmates to commemorate her life by wearing orange. They chose orange because hunters wear orange to announce themselves to other hunters when out in the field. Orange is a color that symbolizes the value of human life. And whereas we renew our commitment to reduce gun violence and pledge to do all we can to keep firearms out of the hands of people who should not have access to them and encourage responsible gun ownership to help keep our families and communities safe. Now, therefore, I, David Spence, on behalf of Mayor Becky Daggett, Mayor of the City of Flagstaff, do hereby proclaim Friday, June 5, 2026, as National Gun Violence Awareness Day and encourage all citizens to support their local community's efforts to prevent the tragic impacts of gun violence and to save lives. Thank you.

Hi, I want to thank the mayor and city council members. I was kind of going back in history in my head, and in 2017, the volunteers of Moms Demand Action hosted the first National Gun Violence Awareness Day in Flagstaff, and former mayor Carl Evans read the proclamation. Bill Ring, Coconino County attorney at that time, he spoke, and there were also speakers from Native Americans for Community Action, and Flagstaff Pride. This year, Mayor Daggett and her council continued this tradition, important tradition, and I also wanted to let you know that on that day, as well as encouraging everybody to wear orange, we're going to have a Yoga for Healing class taught by Astrid Alvarez on the Coconino County courthouse lawn from 4.30 to 5.30. And I hope that you will plan to take the free class or just stop by our table on your way to First Friday Art Walk to find out more about Wear Orange and actionable steps we can all take to make our community safe. Thank you.

All right, next up we have council liaison reports and I'm going to start with council member Spence.

Thank you, Mayor. The Open Space Commission held a field trip yesterday to Picture Canyon, and we were updated on the improvements to the trails and to the signage at Flagstaff's premier open space at Picture Canyon. Thank you.

Council Member House.

Nothing for me today, thank you, Mayor.

Vice Mayor.

Thank you, Mayor. I have an exciting update for Mountain Lion. The Mountain Lion Board has accepted the retirement notice from the CEO and General Manager, Heather Domlin. Heather will leave the role in November working with the board and the Mountain Lion team to transition to new leadership in the upcoming months. We are looking at an interim. I'll have more updates at the next report, and that way we can do a nice recruitment and hire for the new CEO of Mountain Lion. And before I forget, also Thursday, there is a Metro Plan meeting, one o'clock at the DCC in downtown. Thank you. Councilmember Aslan.

Thank you this past week I had three meetings that I was liaison for tourism Commission met on Thursday afternoon Major discussion item there was a presentation by Rick Tatter About the BBB tax. It's a presentation that we've all received recently in some form or another With the Coconino Plateau Water Advisory Partnership, we had an amazing presentation from Blaise Lasla from New Mexico Tech, who went over his grad school research regarding the Grand Canyon's Swiss cheese karst region in the northern Kaibab. And just really had a wonderful time looking at all his caving pictures and all the surveying they did to sort of, um, in a very innovative way, uh, map the, the, the water striations of, of the Kaiba plateau. And then lastly, we had a, uh, sustainability committee meeting. Um, again, more presentations that council has received in other formats and other places, but, uh, uh, last cap, Presentation by Jenny and Amy Tressler. And Jenny, again, presented a high-level overview of key components of the 2024 suite of codes, including the International Energy Conservation Code, which is a topic that will be coming up this summer for us. And Noah Baker finished out the meeting with updates to the Wildland Urban Interface Code. That's all.

Council Member Garcia.

No reports tonight. Thank you.

Councilmember Matthews.

Just one, on Monday the steering committee met again on the healing center that we are working on with the county and some other stakeholders throughout the city. We had some setback news but then some great information as we continue to learn and get information and gather in other community partners and we should have our impact, our needs assessment done in the next few weeks, so that is looking positive, and just keep chipping away at it.

Thank you, and no report from me. Next up, item number seven, liquor license public hearings. I'm opening the public hearing, and we will have a presentation.

Good afternoon, Mayor and Council. My name is Jessica Matias on behalf of Georgiana Stasky, Deputy City Clerk. Before you today are two liquor license applications. The full packet material was included in the agenda packets for review. For conciseness and motioning, I will provide the information for the licenses together. Lowell Observatory Series 7 Beer and Wine Bar, located at 1400 West Mars Hill Road. The agent is Keith Brian Turner, and the manager handling the day-to-day operations is Kyler Williams Kuhn and Jason Jonathan Sanborn. Sawati Thai Series 12 restaurant located at 115 East Aspen Ave. The agent and the manager handling the day-to-day operations is, and I apologize if I'm mispronouncing this, Chirasin Poonmong. The police department and planning development services have conducted their respective investigations and the reports included in the agenda packet, and there are representatives from the divisions here to answer any questions you may have. Representatives from the businesses have also been invited to attend the hearing.

Thank you so much. Council, do you have questions about either of these applications? All right, I will entertain a motion for item A.

Mayor, did we call for public participation first?

We don't have any public participation, correct? And thank you for that reminder, city attorney. And I'm closing the public hearing, and I am looking for a motion for item A.

Mayor, I will move to forward the application to the state with a recommendation for approval.

Is there a second? I'll second. Any discussion? All those in favor?

Aye.

Any opposed? All right. And item B?

Mayor, I will move to forward the application to the state with a recommendation for approval.

I'll second. Any discussion? All those in favor? Aye. Any opposed? All right. Thank you so much. Moving down to consent agenda, all matters under the consent agenda are considered by the city council to be routine. Unless a member of the city council expresses a desire at the meeting to remove an item from the consent agenda for discussion, the consent agenda will be enacted by one motion approving the recommendations listed on the agenda. Unless otherwise indicated, expenditures approved by council are budgeted items. So council, are there any items you would like to pull for discussion? And we have no public comment asking to comment on any of these items. So consent agenda items A, B, C, D, E, F. Can I get a motion to approve the consent agenda?

So moved. Second.

Any discussion? All those in favor? Aye. Any opposed? All right, moving down to routine items. Item A, consideration and approval of a contract with Digital Ad Server Master Services.

Good afternoon, Mayor, Vice Mayor, and Council. I'm Lori Pappas, Marketing and Media Relations Manager with Discover Flagstaff. And this afternoon, we're talking about a digital ad server. Digital ad server has been in my pocket and in the Bureau's pocket, in the CVB's pocket for years, long before, I'd like to say before I was ever born, but that might be a stretch. But you get the idea. We've worked with a digital ad server over the course of more than 20 years. And we've worked alongside our procurement team as it was time to recognize that the current contract was expiring. And so we went through a thorough RFP process and landed with a new digital ad server partner. And that's what we're gonna talk about in the next few minutes. And I wanna share that in today's fragmented media and travel planning platforms, it's fast. It's super fast. And that's really where, I guess that's one of the strengths of a digital server. I do want to make an introduction. I believe Mina and Rachel, who are with Adgenuity, are on the call. Mina, can you hear us? OK, I see that she's here. We cannot hear you, Mina. And I believe Rachel should also be there. But maybe if you don't have any questions, we're going to be in a good place. So we'll proceed. So the vendor that was selected through the RFP process is referenced. Their name is Adgenuity. Agenuity is no stranger to tourism. They have a host of, they're exclusive in the tourism silo, working with a host of destination marketing organizations. Those such as Visit Anaheim, San Francisco Travel Association and the list goes on, but recognizing time, I'll keep it short. The what, the additional role of a digital ad server is to deliver end-to-end media strategies across both paid social channels as well as the full programmatic ecosystem. And what I mean by that is they'll deliver static digital display ads They'll deliver ads via native and then just the host of videos serving opportunities that we have, whether it's over the top TV to those such as cord cutters. It's also through platforms such as Hulu and Netflix.

Thank you. Yeah, I was like, there you go. This is going to help.

Sorry, Heidi. I'm not quite sure how to advance this.

Try this. I don't have my glasses on. This is not going to be helpful. It takes three to make this work. Just scroll it because it's a PowerPoint. Oh, okay.

All right. Where are you at? That's where I'm at. You just scroll right down. Yeah, you're the winner, thank you. All right, so in a given year, Discover Flagstaff pushes out more than 1,000 digital ads. That is a lot of creative. And you have to couple that in that it's served over different formats. So we have to adjust our creative and speak directly to that audience. The strategic media placement will be data-driven and decision-making with adjunuity. Over the course of calendar year 2025, nearly 13 million impressions were served. That's a lot of reach. I wanted to take some time and share with you some of the creative that we do push out. And it's important to know that we're very mindful with our stay and play responsibly. Very, very focused on right now, be fire aware. Winter recreation is also among that stay and play responsibly messaging. We'll also support the... the city of Flagstaff as being a four season destination. That's a treasure within Arizona. We recognize that. Top far right is an image of our leafometer. It is a top performing page year over year. You guys, that's huge. The leafometer was creative that was born within the four walls over at the Milligan House. And to see it be an outstanding performer comes with a lot of partners. Digital ad server is one of them. To the left, lower left, is an image that we serve to people who are fanning with the Cactus League baseball team. We recognize through research that there are more than 400,000 people that go to the greater Metro Phoenix area. They attend a Cactus League baseball game. We know, again, being data driven, we know 400,000 of those people have a national park and a national monument or a state park on their itinerary, you know there's no better place than Flagstaff. So we get them. Especially think about the timing. That's February, March. It's a need season for us. All right, Flagstaff 365 is a URL under Discover Flagstaff's umbrella. This is where we communicate to people looking for things to do on a calendar year basis. It's everything supporting culture, our performing arts, our visual arts. On the far right, you'll see that we're also using this platform to support our drone show coming up this 4th of July. Really relevant right now is we have our Route 66 Centennial celebration well underway. If you aren't aware of it, please mark your calendars because it is going to be the place to be seen. Truly, it is. And that's this Saturday, June 6th, along Aspen Avenue, and we're partnering with other community locations throughout the city as well. To the left is an example of what we call a carousel ad. You'll see this on paid programmatic, and you'll also see it on social channels. Another carousel ad you'll see here with our breweries, and this is in honor of Arizona's Flagstaff's Craft Beer Week. The three ads in the lower part of the slide, super cool. We rely on a digital ad server to serve these ads to people. We geofenced strategic areas along I-17 and I-40. encouraging people to get to Flagstaff instead of driving through. I mean, think about the way you travel. This is for travelers with at least two people in the car, right? Because one person's got to be on their phone, handheld device. You know that they're looking for places to eat. They're hungry. So more than just a gas stop, if we weren't on their itinerary already, we want them to spend more time in the community. And that's an example of digital ad serving as well. I talked about responsible visitation. Here are a couple of examples in creative that our digital ad server has supported us in pushing out winter recreation and be fire aware. Also, to the far right is our passport, our trails passport. And then what we haven't talked about yet is the way the digital ad server accommodates the needs of other city sections and divisions. So here is an example where Discover Flagstaff has assisted our water section. Recently, we had a hand in the regional plan being approved. We did the proposition with the city manager's office and that also passed with Flying Colors and then BBB recently passed as well. Again, they have a big hand in that. And you have to recognize when you're looking at this and you're looking at the previous creatives, think about the different audiences that we are reaching with our ads. It's really highest and best use of our funds. We still run print. We still run out of home. The media landscape is busy. And we know people consume media differently. And our digital ad server is very important to the success of reaching the right person at the right time and then also helping us with the highest and best use of the dollar. We've also done some work with the airport, and I would be remiss to point out that we've worked with our fire department as well. We've done some really awesome things with our fire department, but I'm going to keep this going, again, in the spirit of time. So our digital ad server, annually we're asking for $190,000 budget, and then we've got $95,000 in addition that will sit as a contingency. So when we talked about the additional work that we've done with some of the other sections, many times that's coming from that contingency fund. Other ways that we'll use that contingency fund is not too long ago, Glendale was the host of the Super Bowl. The following year, that Super Bowl was in Las Vegas. We were front and center. We weren't gonna let those people go without thinking about Flagstaff and coming here overnight. Adjunuity will optimize to our high-value travelers. They'll be responsible with the media placement. They've got the dynamics in place. They've got the knowledge. And then I think toward the end of this last paragraph, clear measurement is so important to us. I think many of you have attended our annual meetings. You know what that means. And the outcomes will be aligned with community values. We listen. Community sentiment is definitely part of what we do. And sustainable destination growth. And at this moment, this is where I would like to request that the council approve the selected contract.

Council, do you have any questions or comments? Council Member Garcia.

Thank you so much, Madam Mayor. And thank you, Lori, for the presentation. Did you say 13 million impressions? I did. That's fantastic. Thank you. That's a good number. And when I look at how much we have to spend on this, it makes me feel really encouraged. But I had a question, and it kind of revolves around that. Is there a number that we can quantify our return on investment as a metric to direct visitorship or to dollars spent for this?

There is, and we'll measure return on ad spend, and this does come from our digital ad server. And I can't recite that number right off the cuff. I bet we could look it up real quick on our site. I'm gonna say it hovers around $150 for every dollar spent.

That's fantastic, and it's encouraging. I will definitely support it. Thank you. Anyways, but knowing that, it makes me want to support it even more. Thank you.

Thank you. You know, I do want to add just a little bit in regard to those 13 million impressions, and here's why. You've got to think about when somebody has a propensity to visit, they have a propensity to travel. They want to go to a national park. You guys gotta think about, we're competing in nanoseconds with the other DMOs that have national parks. Think about, you know how bad we fight with Las Vegas, right? They claim that the Grand Canyon's in their backyard. And so we're competing with the likes of them. I mean, that's some big competition there. So thank you for recognizing that.

Yep.

Council Member Matthews.

Thank you, Mayor. I just have a comment just to that point. Um, when my husband and I travel, the ads are what make our decision, you know, 80% of it is what we see, what comes up because we may not know the area and stuff. So this is very important and I appreciate all the work and the presentation that you presented. It's definitely, um, we're getting a great return on our investment on this. So thank you, Lori, for everything that you covered. Mayor, I'd like to make a motion.

Any other questions? Vice Mayor.

Thank you and thank you, Lori, for the presentation. I too see the value in this and watching through the years and having my business a part of your advertising and seeing what a difference it makes. What I really appreciate is our 66th celebration coming up on Saturday and watching all of that roll out. It's been quite an amazing experience beginning to end to see it. And I really hope that everyone in the room can participate on Saturday, but the advertising has been spot on. So I just really appreciate all of your work.

Thank you very, very much for the kind comments and all of the support. It really does take a village and none of this work is done in a silo. It is everybody coming together.

All of your work is top notch. everything that you produce. Thank you. Uh, council member Matthews.

Thank you, mayor. Um, I would like to move that we approve the digital digital ad server master service agreement with said agility LLC and okay, thank you. Uh, of 285,000 annually and authorize the city manager to execute all necessary documents.

I'll second any discussion. All those in favor? Aye. Any opposed? All right. Thank you so much.

I didn't know if you announced it yet. I was looking for my presentation. All right. Good afternoon, mayor, vice mayor, city council members. I am Rick Tatter, your management service director and city treasurer. For item 9B this afternoon, I'm seeking council approval of the banking and depository services contract with Wells Fargo Bank. I'll provide you a summary of the request for proposal process, the evaluation criteria, who responded, how we reviewed, and the results. I do want to start with just making a couple comments about why we're bringing this in front of council. This is an item that's under the threshold of 100,000 that would require council approval, but this is an item of interest to council. Back in March of 2023, we had a discussion related to a citizen's position, related to climate action and banking with fossil fuel companies. During that meeting, we received direction from city council to consider adding some procurement code manual language for sustainable procurement related to financial institutions. So we took that away and then came back to Council in June of 2024, where Council adopted Article 32, which is a sustainable procurement article related to banking for financial services and their financial work with fossil fuels. After council approved that amendment to the procurement code, we took that forward and started building our request for proposal, developing the scope and all that work. We did have a check-in with council in December of 2024. During that council meeting, you received an update to me as far as the process, where we're at in developing RFP and our process going forward with this solicitation. And at that meeting, I committed to you that I would bring this back as an item of interest and be transparent of who we're recommending for selecting for our banking service contract. And so that brings us to today. So as far as the procurement process, This was a procurement that not just included the city of Flagstaff main accounts, but it also included the housing authority. They have a set of banking accounts that are specific for housing and HUD purposes. So we wanted to make sure they had the best banking contract also. The development of the request for proposals, made a comprehensive list of those services that we do as a city of Flagstaff and what we need from a financial institute. It was very detailed and addressed all the services that we require. We developed the requirements for the respondents to respond to the sustainable procurement code additions that we did based on your direction. We posted the RFQ on August 20th and we closed it on October 10th of 2025. At that time, we received four proposals that we took forward. As far as evaluation criteria, I did not have this available at that December meeting, but I want to share with you kind of where we landed. One of the key care areas is the service requirements. We want to meet minimum qualifications, such as being able to insure our deposits through the Federal Deposit Insurance Corporation, or FDIC. Our banks are required to collateralize our dollars. are deposits above the FDIC limits due to Arizona revised statutes and there are requirements related to that. We want to make sure those respondents could do that. We also wanted to make sure they're following state and federal rules for our municipal banking as well as the Housing and Urban Development or HUD related to Flagstaff Housing Authority. We want to make sure a bank can do all those requirements. We ask to them provide key personnel and their experience because a strong team is very valuable to providing services. We ask all the response to provide a transition plan. How do we get from current banking services to the next banking services? And what the recommendation is, how they get us there. And also critical to us in the finance world is their incidence response. How quickly will they response? What their role is? We ask for that information. So that was the first set of criteria. The second set of criteria is really the meat of what we were asking for. And this is the highest scoring portion with 40 points possible. This is where we listed all of the banking services that we hear. These are summaries of what items we put in our solicitations. We did say, let the banks know that they can provide to one or all or a few of these items. They don't have to respond to every banking services. So we can open it up for maybe smaller banks to respond. Say we can do this part of your services versus these part and provide a way we can work together. We thought that would open it up for maybe some smaller banks and some other opportunities for financial institutes to respond. So there's a list of our criteria there for deliverables. The next is the important pricing portion of it. We gave 30 points possible here, reviewing the pricing of every solicitation. And the last set of criteria is that sustainable procurement. For here, per the procurement code manual, in that section or article related to sustainable procurement, We're required to have 10% or 10 points, 10% of the total points. In this case, it was 10 points that we assigned for this area. This sustainable procurement does ask the respondents to respond related to their business related to fossil fuel industry. And it has two components to the ask and the scoring. One is the relationship side. How much do you do in fossil fuel financing in your organization? And then the other portion is your commitment to climate action. We wanted to know how they're moving the needle, what they're doing to advance climate action, and what they're doing in their financial institution. Of the respondents, all of them really do have some type of activity with fossil industry and financing. So all of them didn't score very well in that area, but a lot of them did explain their commitment to the future of climate action. Of the 10 point, the average highest one was five points of the 10 point average. The second highest was about 3.6 points. And those were the two that we selected to continue on the process for interviews. I'll talk about that later. Here is a summary of those points. And then once we got to the final, we also allowed a possibly if the points were close, we offered an opportunity for interviews of the top banks to come back and talk about or answer additional questions we may have. So here are the banks that responded to our request for proposal. JP Morgan Chase, PNSC Bank, US Bank, and Wells Fargo Bank. These are our four of the top largest 10 or so banking institutes in the United States. We put a strong committee, evaluation committee together that are listed here. Brandy Suda, our finance director. Tracy French, our finance manager for housing programs. Nicole Antonopoulos, our sustainability director. Jessica Kittleson, our customer service director. And myself, Rick Tedder. So after the RFPs come in, the next process was reviewing and scoring. The team each took their proposals and provided an initial review and scoring between the period of October 25 and January 26. The committee then met to talk about what we saw in the scoring and how we saw the strengths or weaknesses and how we scored and allowed the committee to maybe adjust their scoring based on what we heard from others. and then put the final submittal of our scoring into procurement on February 6th. Upon that completion, the evaluation committee determined we would like to interview the top two respondents in the request for proposals. And those two respondents that we chose was U.S. Bank that had 413 points out of 500 and Wells Fargo that had 429 out of 500. I will note that we invited them back for an interview and in your packet is the actual Wells Fargo interview slide deck. I thought it was very helpful and very valuable for us as a team And there's some great information in there for you to kind of look at and consider with Wells Fargo. They talk about community impact within there, what they're doing for the city and Coconino County, some great information there. A highlight on slide 13 of that presentation shows that the progress of Wells Fargo to finance sustainable projects. They've invested $264 billion towards sustainable projects in the last several years through 2024, and they have a goal of 500 billion by 2030. So those are some good key points that came out of that interview process that we learned more from Wells Fargo. After that interview, the group met, the evaluation committee met again and talked about the difference of the interviews and we selected Wells Fargo to move forward for contract and best and final offers. Our procurement staff worked with Wells Fargo to get best and final offers and they actually improved what they provided originally. They did a really good job increasing some of the benefits we'll get. And now we're here today to award the contract. So Wells Fargo was the highest scoring and they did do the best interview for our team. Here's just some of the highlights that we have related to Wells Fargo. They have a dedicated banking team. They are very high qualified to deliver our services at the city of Flagstaff. Wells Fargo was the highest scoring on the deliverables, those key components and services that we need in finance, customer service, housing. They were the highest scoring in those deliverable services. They will be waiving the fees for the first 24 months. So we won't see any charges for their services for 24 months. They're giving us a technology enhancement credit. While we don't have a transition plan, they talked about where can we take you to the next steps? What kind of things we can improve with the city of Flagstaff? What new services can we help you with to make you a better city? They upped that from 10,000 to 20,000 with their final offer. So we'll get a credit on implementing new services with them. They gave us some very competitive interest rates on idle balances, cash that's not sitting overnight and so forth. Some competitive rates there. The earning credits offset any kind of charges we have is at 3% and that helps reduce things past the two years to very minimal cost or zero cost over the remaining several years. And they are a local bank. They have local services for us to do deposits and so forth. So this contract award is less than 100,000. My guess, it may be about 20,000 or so over five years, but we are seeking council approval for this contract. So with that, staff recommendation has approved the contract with Wells Fargo Bank and authorized myself, the management service director, to execute all necessary documents. Thank you, and I'm here for any questions.

Thank you, Rick. Council, Vice Mayor. or was that to the previous? Council Member House.

Thank you, Mayor. Thank you, Rick, for the presentation. I just wanted to verify, we had heard previously about local or national banks that engaged in green banking that might be able to meet municipal needs and just wanted to verify that we did not receive any outreach or bids from any of those types of banks?

Yeah, no other companies bid on the service. There was another company that was in like the pre-proposal area, but no other banks applied. We're really hoping for that.

Thank you. And then I also wanted to just circle back on the sustainable procurement question. So you shared where the banks overall ranged, I think you said between like three and five out of 10.

Five out of 10 was the highest average.

And was that Wells Fargo or was that?

U.S. Bank was, got the five average and Wells Fargo was the second highest with the 3.6. Okay.

Thank you very much.

You're very welcome.

Do we have any public comment? Okay, Council Member Matthews.

Thank you, Mayor. Rick, I appreciate your presentation and I know from the robust discussions we had last year about this, I was happy to see that you did and you said that you were going to incorporate the scoring on the sustainability because I think what a lot of the community didn't realize is these major banks, although they may have relationships with fossil fuel companies, They also have some of the most robust climate action and sustainability policies as well, as well as housing. I know these major banks, U.S. Bank, Wells Fargo, Chase, give back a lot. It's part of their requirement to give back into the community, focus on sustainability and stuff. So I appreciate you putting it out there in black and white, and it really helps just clear the air. Just out of my own personal curiosity coming from the banking industry, earnings credit is a big deal. I mean, that was a big selling point back in my day because it could offset the fees associated with a checking account, especially for a municipality that has so many banking needs. 3% is a decent number, but can you, off the top of your head, what is right now the going rate? Is it 2.75 or...

I did not bring that going right with me. That's all right.

Next time I see you, I'm just curious because I remembered when you had that on the slide that that was when we were going out trying to entice businesses to come to our bank, that was where we focused on. This was our earnings credit because it was a big deal. It could offset thousands upon thousands of dollars depending on what it is. Anyway, those were just my two comments. Thank you so much for the presentation and the work that you and your team put into it, I appreciate it. Thank you.

Council Member Spence.

Thank you, Mayor, and thank you, Rick, for this presentation. As a council member, and before I got elected to council, I was involved in that citizens action petition to have the city look for a green bank and get away from a bank that was heavily invested in fossil fuels. I want to thank you and your evaluation team for the good work that you've described. I am pleased that you took the citizens petition seriously. and took that 10% evaluation criteria and ranked the banks on that accord. So I just want to thank you for your work, and I do support your recommendation on the contract.

Thank you.

Vice Mayor. Thank you, and I too, Rick, just wanted to give some thanks. I know for me, I really was hoping for a smaller local regional bank to at least be, to apply. They were able to apply, and thank you for outlining how you made that feasible for them, and I just, you did listen to what Council said. It was a very robust conversation years ago, and I feel very confident that you did your due diligence, you and the team, and I just do appreciate that. Thank you.

You're welcome.

All right, I'll jump on the thank you bandwagon. I'd like to note, sustainability was on the review committee, but sustainability was also involved in every step of creating this new RFP process, and I know I met with you in sustainability at least once during this process, and I just appreciate all of the work that went into just creating the process, let alone then taking it to the next step. And I know that partnering with another city on a request for proposals that they put together, which are competitive bids, I've heard that said before that if we partner with another entity who has an RFP that those aren't competitive bids. It's the same process, we are just working with them and we don't have to create the RFP. I know that this is so much more work to do rather than partnering and I appreciate that you put so much effort into it and that sustainability put so much effort into it and that we're here today.

Yeah, it was Nicole, Patrick Brown, myself, and others that helped develop that procurement code change for sustainability. So we do appreciate the teamwork we had with that. Definitely will recognize that.

All right. We have no public comment. No further council questions. So I'll entertain a motion. Oh, I'm sorry. Yes, city manager.

Mayor, Council, I won't say much, but I do just really want to recognize Rick, Patrick Brown, our purchasing director, and Nicole Antonopoulos. This has been a lot of work, and I think Councilmember Spence, your comment about taking this citizen petition seriously, but not only that, taking phone calls and questions from community members, being incredibly transparent about this process, and I just want to thank all of you. I thought this was an excellent presentation, and thanks.

You're welcome.

So, Council Member Matthews?

Are we ready for a motion? Okay. Mayor, I'd like to move that we approve the contract with Wells Fargo Bank and authorize the Management Services Director to execute all necessary documents.

I'll second. Moved and seconded, any discussion? All those in favor? Aye. Any opposed? All right, thank you. Next up, item C, consideration and approval of contract and discussion and direction on RFP, another request for proposals. Hello.

Good afternoon, Mayor and Council. Bryce Doty, your real estate manager. Let me pull up a short presentation. So this item before you today is consideration of a purchase and sale agreement for the land at 320 North Humphreys, not South Humphreys, as that slide says. And that is the entire block, which is bounded by Humphreys to the west, Beaver to the east, Dale to the north, and Cherry to the south. Now, when I'm mentioning the purchase agreement is between FSL holding partners and the city, The developer is actually now known as All Thrive 365, but the holding company for the land is still within FSL Holdings. So the agreement between the two parties is written like that, even though the existing affordable housing developer is now known as All Thrive 365. So in some of the staff summary, some of that's kind of interchangeable, but that's because it's kind of interchangeable with them. The city staff has been before you recently for this. We received direction from you in December to purchase the south half of this lot. When the opportunity to purchase the entire lot became available, we brought that back to you in January, and we were directed to purchase the entire lot. This purchase agreement before you today does just that. So what we, let's talk about a couple of the key provisions. The one main provision is the price. So we are purchasing the entire lot for $6.3 million. That's about 70 bucks a square foot, which is a very competitive rate for downtown prices. We are paying for it through a variety of funds, primarily the proceeds from the old courthouse and we, the New courthouse still has some operating capital fund to provide parking, so that's where that's coming from. And then the general fund is providing some capital reserve funds and a real estate proceeds fund. So you put all that together and you're going to get our purchase price for the land. The seller, part of their desire or part of their willingness to sell the entire parcel is their deep commitment to affordable housing. So one of the... willingness to sell to the city was that they really wanted to honor their commitment there and so as a way to honor that the city as part of the purchase agreement we've agreed that within one year of closing on the property we will solicit a development opportunity on the parcel that will include an affordable component and so that could involve all or a portion of it but Also important to note that we're using funds to provide parking, and so all of that parking will have to be incorporated in any future development. And then once we purchase it, which we are expecting to close, this should be a fast close. We should close within the fiscal year here, so we're hoping to be done with this by the month of June and own this. After that, funding has been identified for capital improvements to manage beautification and improvement project on the lot as an interim condition. Yank out some old nasty looking chain link fence, et cetera, stuff like that. And then staff, very soon, as in right after I ask for approval of this, we'll have a discussion item about parameters for solicitation so that we can meet the city's objectives for affordable housing and parking. And so with that, that's all I have. Staff's recommendation is to approve the purchase agreement, and we have plenty of staff here available for any questions.

All right.

Thank you. Vice Mayor. Vice Mayor. Thank you, and thank you for the brief presentation. I am, you know, I think I have said this out loud, but I am very supportive of this and am excited to see what can come. I am wondering with the sources of Income that we're using to pay for this do we have a contingency plan? And what does that look like if something doesn't go through like the sale of the old courthouse or? I don't know. I just I'm looking at the list and things happen.

So if they do What's our plan those sound like great questions for one Rick chatter?

Thank you Vice Mayor, the one money we don't have is the sale of the courthouse. That is a active project we're working on, trying to get that to a redevelopment. If we don't close for that redevelopment, we'll continue to look to have somebody purchase that and redevelop that property. So there may be a period of time where we don't have the actual cash, but we'll just keep that in mind and have a negative balance for that courthouse property procurement.

balance sheet That's fine within the standards of financial reporting and we'll just keep that as a future receivable Thank you for clarifying Council any additional questions or comments Then I will entertain a motion Mayor I would like to move to approve the purchase agreement with FSO holding properties LLC and authorize the city manager to execute the necessary documents a second

Any discussion? All those in favor? Aye. Any opposed? All right. Thank you.

You're welcome. And for the part B of this item, I'm going to kick it over to... City Manager Keene and I'll just leave this on just for kind of visual understanding.

Sure. So as Bryce mentioned as part of this agreement, we have agreed to get out a solicitation within a year for a housing project that has an affordable component. So what I wanted to do today was get direction from council that you're comfortable with us moving forward with drafting an RFP. It would be similar to some of the RFPs that we've put out on other city properties where we're soliciting interest on that site. Obviously, there would be a request for a housing component and a parking component. But we'd like to do that pretty quickly, particularly to meet potentially some deadlines with LIHTC funds, if that's an option. So we would like to be working on that over the summer break. and can bring it back to council with updates.

Your thumbs up, you have a question? Council Member Matthews and then Council Member Spence.

Thank you, Mayor. City Manager, just to clarify, will the RFP go out to do both the parking and the housing with a affordable component or can we move forward with the parking and separate the properties.

Mayor and Council Member Matthews, that's a great question. So our plan is kind of immediately to start working on improving the parking in that area. So to maximize parking spaces, to beautify the area. And at this point, we haven't made the decision on whether an RFP will include both of those components. It likely will. And that's something I think we will be doing our due diligence over the summer.

And then my other question is, just so I'm clear, the RFP that we're thinking of sending out, the city would remain the land owner and then lease, go and partner private public partnership with a developer for the housing component. Correct.

That's the intent. Thank you.

Council Member Spence.

Thank you, Mayor and City Manager. I support you and your staff working. As you have outlined, it would be my hope that the RFP could be constructed in such a way that a higher percentage of affordable housing the higher percentage of dwelling units that they can propose gets a higher ranking. And I would hope that it could be a range of affordability, you know, 20%, 50%, 80% AMI identified in their proposal with the overall goal of really adding to our inventory of affordable housing. So I hope you can build that into it. Thank you.

Thank you, Council Member.

All right. Do we need a motion for this? Sterling?

Yeah, it's posted here. Oh, you already did that? Never mind. My bad. That was just the direction. Yes.

So do we need a motion for direction? All right. So can I get thumbs up so we see whether people... Okay.

Thank you. It's unanimous. Thank you.

Okay, next up, D, consideration and adoption of resolution number 202629.

Good afternoon, Mayor, Vice Mayor, members of council. My name is Matt Mansfield, Senior Assistant City Attorney, and we're here on resolution 26-29. That would approve an amendment to the intergovernmental agreement between the city and Coconino County Community College District regarding the purchase of the joint firearms trading facility, formerly the Timberline Range out on 89. Just by way of brief background, council approved that IGA for the acquisition back in February of this year. And that IGA was focused on the acquisition and due diligence for the purchase of the facility and straightening out the ownership. Section 10 of that IGA required the parties to get together and put together what is called a shared use agreement. And that shared use agreement is really designed to be a framework for the process of operating and maintaining the facility on a daily basis. And so what you have before you in the amendment is a shared use agreement And that is a culmination of months of work by city staff across many departments. We had PD, of course, taking the lead. We had facilities. We had management services. We had input from just about everybody on our side. And then we worked together over a period and series of meetings with community college staff. And really this culminates in the agreement that's before you for approval. Now, this agreement is also being presented to the College Board later this week, I believe on Thursday, and the staff recommends approval of the agreement, mostly because the parties have negotiated and worked together and have addressed all of the issues that were required in Section 10 of the IGA, and also because this shared use agreement is a requirement of all the parties, including the licensee sheriff's department, This has to be in place before training operations can actually begin at the facility. So this is sort of the last step towards kind of getting the doors open to actually start doing the training programs that the city and the college both want to accomplish. It will also create the framework and open the door for the city and the college to start soliciting other law enforcement agencies as licensees that in turn will hopefully generate the revenue that will keep the facility sustaining itself over time. So the staff recommends that resolution is adopted and I would answer any questions if there are any.

Thank you. Council, I don't see any Cs or Qs, nothing. All right, then I will entertain a motion.

Mayor, I move that we read resolution number 2026-29 by title only. I'll second.

Any discussion? All those in favor? Aye. Aye. Any opposed? City Clerk?

The resolution of the Flagstaff City Council approving an amendment to the intergovernmental agreement between Coconino County Community College District and the City of Flagstaff for the joint ownership and use of the firearms training facility.

And a motion to adopt?

Mayor, I move that we adopt resolution number 2026-29. I'll second that.

Any discussion? All those in favor? Aye. Any opposed? All right, thank you. Moving down now to item number 10, public hearing items. I will open the public hearing. This is the consideration and adoption of ordinance number 2026-12.

All right. Good evening, Mayor and Council. Bethan Heng, Senior Planner with the City of Flagstaff. Tonight, the item before you is Winslow Ready Mix. It's a direct to ordinance zoning map amendment. And the applicant is in attendance tonight. So the subject property is located at 6500 East Route 66. That's on the east side of town. And the applicant is wishing to utilize a portion of the site to lease two lots. So this site is contractor supply yard and they're leasing separate lots but the applicant's wishing to use two of them for a concrete batch plant so tonight the request before you is to modify an existing rezone so the direct ordinance zoning map amendment is an existing one so this is a modification to that and it's of 18.2 acres of heavy industrial zoning with the resource protection overlay So the application tonight is modifying the conditions of the prior rezoning for the purpose of allowing a concrete batch plant on site, which is considered a general heavy industrial use. So a quick vicinity map to the north and to the east of the site, it's zone rural residential. This is currently mining land. To the west of the site is the city of Flagstaff wastewater treatment plant, it's zone public facility. And then to the south of the site, it's Coconino National Forest and right of way and it's zone public land forest. So I just wanted to throw this on here. This is the definition for general heavy industrial. I won't go through the details of this definition, but it does explicitly call out a concrete batch plant as part of this land use. So that's why you're seeing this definition. The general heavy industrial is a permitted use within the heavy industrial zone. So I have on screen, this is the site plan that will be now tied to the direct ordinance zoning map amendment. So here at the City of Flagstaff, when we receive an application for a direct to ordinance zoning map amendment, we have a specific site plan tied to it. So this application previously had a different site plan tied to it. It now includes the new land use of the concrete batch plan as part of that site plan. So that's why you're seeing that here. And as mentioned before, the concrete batch plan is proposed for yard 15, and then yard 14 is designated for aggregate storage. So there are typically three impact analyses that can be triggered by an application, and they are as listed on the slide here. So they are traffic impact analyses, water sewer impact analyses, and stormwater analyses. I won't go into detail here, but I do have an additional slide at the end of the presentation. If you have any specific questions to that, we'll be happy to answer that for you, but we'll jump to the findings here. So in order for staff to recommend approval for a zoning map amendment, three findings need to be met. The first of which is the proposed amendment must be found to be consistent with and in conformance with the goals and policies of the general plan. So this application came in under the previous 2030 regional plan and it calls out for this area to be for future employment area. This site is designated as heavy industrial with the purpose of being a contractor yard for heavy industrial uses. So spring and employment into that area meets this finding. The second finding is the proposed amendment must be determined not to be detrimental to the public interest, health, safety, convenience, or welfare of the city of Flagstaff, as well as contribute to public good. So part of this finding, we require an application as applicable to conduct their impact analysis. So they're meeting the first part of this finding with health and safety. And as mentioned, due to the nature of this land use, it will also be adding to public good with employment opportunities. So the third finding and the last one is that the site must be determined to be physically suitable in terms of design, location, shape, size, and operating characteristics and provision of public and emergency vehicle access. It's a pretty lengthy one, but essentially it's talking about the design of the site and coming into conformance with our various Flagstaff codes. This application came through the administrative review process, also known as interdepartmental staff, or IDS, to make sure that it is in compliance with all of our design codes and requirements, so this finding is also met. So this slide essentially reverberates what I had just described. All right, so because it was a zoning map amendment, there was a neighborhood meeting component to it or citizen participation. So the applicant did notify neighbors within a 300-foot radius of the subject property, and they held one online virtual public meeting on February 18th, and they had no attendees. So our code allows for the second required neighborhood meeting to be waived, which they requested, and that was granted since there were no attendees for that first meeting. And to date, staff has not received any comments on this application. So this application went to Planning and Zoning Commission on May 13th, last month. And Planning and Zoning Commission forwarded the request to the City Council with a recommendation for approval with a vote of five to zero, subject to the following three conditions. So I'll leave this slide on the screen, but at this point I'll open up the floor for any questions.

Council member Matthews Thank You mayor Can you go back to the finding number two? So and I see that they did a public Outreach meeting with the with the residents within 300 feet but we had something similar in that area not specifically where the bigger issue was the traffic of large trucks going down residential roads. So was there any discussion of that or is that anticipated to have an increase in that type of large vehicle traffic going through the residential areas?

Yeah. I have the applicant here tonight that he might be able to speak to that question, but access to the site, and I can pull up the site plan here, is actually through this easement that's on the adjacent property to the west. So it cuts right through that city of... Yes, yeah. So it's right here. So this site, and maybe I can pull up the vicinity map. So this road right here, there's an existing easement to access the property, and it's right through the city of Flagstaff wastewater treatment plant. And part of that easement, they do have an agreement with the city of Flagstaff for that easement to access the site, which is right over here.

Okay, yeah, that's great. I overlooked that to see that they were coming off that road that runs parallel to the 40. I was thinking that they were going to come in the other way. So thank you for that.

Council Member Spence.

Thank you, Mayor. Thank you for your presentation. Could you go back to finding number one? Please. I guess... I thought the land use plan 2030 was referenced in this finding. It must have been in some of your other discussion where you referenced the regional plan 2030. Is the recently adopted, adopted by the public, the recently adopted regional plan 2045, does that plan make any changes in the land use criteria for this particular location?

Yeah, that's a good question. That's a question we've been asked a lot in the last year, especially with the transition to the new plan. So what was determined was for any application, if it is found complete before ratification, which was last month, I believe May 19th, that they can utilize the previous 2030 regional plan. So this application was found complete, I think it was late last year I inherited this project from a different planner, but because it was found complete before the ratification date, it got to utilize the 2030 plan without having to apply the new one.

And Mayor, if I may, we have later on the agenda tonight canvassing of the voter ratification of the regional plan. That is when it will become effective from that ratification on.

So the way I interpret that is save by the grace of one hour.

So it's actually the point at which the application is found complete. So not the point at which you get to vote on it, but when staff administratively reviews and make sure that the application has everything we need to review. And that locks you into the version of the regional plan in place at the time.

Thank you for that clarification.

Council Member Garcia.

Yeah, thank you, Madam Mayor, and thank you for the presentation. I couldn't think of a better place to have a cement batch plant than that area, just judging by how, in code, there doesn't seem to be any planned residential encroaching on that space. Is there anything that I don't know about, about any planned residential that could move into that space? I'm assuming it's no, but I just wanted to make sure that that was clarified before we move forward.

I think right now most of our applications are on the west side of town.

Thank you for that clarification.

All right, we do not have any public commenters, so I'm closing the public hearing. And if there are no further questions or comments, I will entertain a motion.

Madam Mayor, I'd like to read ordinance number 2026-12 by title only for the first time.

I'll second. Any discussion? All those in favor? Aye. Any opposed? City Clerk?

An ordinance of the City Council of the City of Flagstaff amending the Flagstaff zoning map to rezone approximately 18.2 acres of real property generally located at 6500 East Route 66. APN 113-07-003S to modify the conditions of the previous rezone of this real property to incorporate a new site plan and allow a concrete batch plant, providing for severability, authority for clerical corrections, and establishing an effective date.

All right, and we'll have this again on the June 16th agenda.

Thank you.

All right, we're down to our regular agenda, 11A, Consideration and Adoption of Resolution Number 202625.

Good evening, Mayor, Vice Mayor, and Council. Heidi Derryberry, the City's Budget Director. I'm here this evening to present to you the City's Fiscal Year 2026 Tentative budget adoption via resolution. I do have a short presentation this evening, but before I start, I would like to take this time to thank the many people that makes this possible every year. Specifically, thank you council for the many retreats we hold, the city manager's office and the budget team that went through this process this year, the budget section staff, as well as all city divisions. It does take everyone to get us to this point. So first of all, I would just like to start quickly. You've seen this timeline as we've marched through it over the many months since December. We are here this evening, June 2nd, for the tentative budget adoption. We do have two more council meetings to finalize the entire process for the year. So I will be back on June 16th, where we will have the property tax levy hearing, the first read of the property tax adoption, as well as the final budget adoption. And then on July 7th, we will be back for the final second read property tax adoption. So I'd like to talk about a few of the highlights from this year's budget. We continued in this process to align the budget with the key community priorities and objectives that were established by council and the community. We also directed many of our priorities to the council priorities that you had established during the December retreat. We focused on property tax shift for public safety and the needs that we are seeing in that area. We focused on compensation and benefits for employees, basic services and operational needs, continued infrastructure needs, as well as the climate neutrality plan and the housing plan. Before you is the legal schedule A, which is our total appropriated budget. Total fiscal year 2026-27 budget is approximately $627 million, which is an increase of approximately 20% over last year. I will talk about that on the next slide. Of that total, general fund is approximately 19%, or $122 million. Our special revenue funds, such as HER, the Highway User Revenue Fund, transportation, BBB, and others make up approximately 34% or $215 million. The debt service funds such as general obligation bond and pension debt service make up 4% or $22 million. Our capital project funds make up approximately 11% or $69 million. which this includes Prop 441, Prop 442, as well as the downtown mile projects. And finally, enterprise funds such as water services, solid waste, airport and CEMS, or sustainability environmental management, make up 32% or approximately $200 million of the total budget. As I mentioned, I'll go into a little more detail for the 20% increase we're seeing year over year. As you can see from this graph, the majority of this increase is related to the result of capital outlay. While total operations did increase approximately $12.9 million or 5.7%. In addition to general increases for personnel and benefits, this increase included additional items for operating costs related to recent rate increases such as parking fees as well as water rates. It also includes a number of expected grants to be used for operating needs. So all of that 5% increase is not necessarily ongoing funding increases. The larger portion, as you can see, is our capital outlay, which includes operating capital, such as fleet purchases, as well as the city's total capital improvement program. This increase over the year prior was 90.5 million or 35%. This increase is driven by a number of items, including items which we have embarked on in 2025-26, which have been carried forward into the next year as they will not be complete by June 30th, as well as a number of large projects that are expected to move forward in the new fiscal year. These items include things such as John Wesley Powell Extension, the Lone Tree Overpass, Lake Mary's Sud Basins, the Rio Solids Treatment, and many, many more. The debt service and reserving contingency funds remained relatively flat year over year. The proposed budget before you this evening includes a number of items with the city continuing to focus on our continued commitment and investment in our employees. These items include things such as pay for performance and step increases, which are budgeted and planned in all five-year plans, includes the starting wage adjustment for the regular pay plan to continue to remain competitive among local businesses and other municipal governments. The minimum wage adjustments for our temp pay plan as required. Mid-year critical adjustments set aside as you have heard in case we have areas of hard recruitments or other things that need to be addressed during the year. The city is maintaining benefit cost share for all employees, which is a high importance to the EAC, or the Employee Advisory Committee. The city is proposing to increase the parental leave benefit by adding an additional two weeks to the four that we currently have for a total of six weeks, as well as an option being added for retirees to invest in a retiree health savings account. Since we shared with you at the April retreat, the city manager's proposed budget, there have been a few changes that I'll share with you next. So during that conversation at the April retreat, there was a request for additional funding for the Literacy Center programming as well as Dark Sky compliance funding. We did add, as part of this proposed budget, $4,000 for the Literacy Center programming as well as $25,000 dark sky compliance funding for the city's contribution. The other changes that have been since the April retreat all relate to carryovers. So capital improvements. So carryovers, first of all, are related to items that are not expected to be received or completed by June 30th of the current fiscal year. This can result obviously from a variety of reasons which include capital projects that may be spanning multiple years or have delays. as well as the purchase of goods and services that are not complete delivered by June 30th. For example, we have a number of vehicles we've purchased for fire, for example, that are taking multiple years, 18 to 24 months for delivery. So a few details, the capital improvement program carry overs of $37.6 million involved a variety of projects. For general government projects, this included items such as the IT fiber project, the STEM Education Facility project, USGS renovations, and Foots and Open Space Land acquisitions, as well as others. Transportation had a number of carryover projects, which include the JWP Extension project, the Lone Tree Overpass and Corridor project, and various bike and ped projects, including the Butler Avenue Complete Streets project, as well as pavement overlay projects. Water services, such as the Lake Mary location project, Wildcat pumps and Rio generators are all part of that overall carry forward. We also had additional operating carry forwards for capital. These are items related to fleet purchases, facilities, maintenance projects, et cetera. As I mentioned, we are seeing longer and longer delay times of receiving items such as fire trucks and vehicles as well as not being able to completely finish a number of facilities projects during this fiscal year. This carry forward for operating also includes a number of catastrophic fund carry forwards for infrastructure fleet and facilities that we hope to not have to spend by the end of the fiscal year and therefore have carried into the next year for in case of those emergency situations. Operational carry forward so these are our various day-to-day operating needs these include a variety of studies software and contracts As well as includes contingency funding for pension We may or may not need to make an additional contribution by the end of the year So we have carried those fundings forward for next year. There's various software contracts, including developer incentives for affordable housing, Prop 442 funding for adaptive reuse, rental incentives, and down payment programs. And finally, we have 3.3 million in expected carry forwards for grants. This is also a variety of grants that we may have applied for and not received award or not completely expended by the end of the year. Um, these include a variety of police grants, including some department of justice, governor officers of highway safety and federal equitable sharing funds. It includes CDBG or community development block grant funding for housing, as well as funding for fire shed and forest restoration. At this time, I'm going to go ahead and hand it over to Shannon to talk a little bit about BBB.

Good evening, Mayor and Council. During our discussion last week on the public safety ballot measure, there was some discussion on bed board and the booze tax. We thought this would be a good opportunity to bring some of that information back to Council to make sure that we were sharing what the code has and what staff do to include that funding as part of the special revenue funds that Heidi covered on that 34% of our overall budget. Um, so for this particular BBB tax, we did have a renewal in November of 2024. Prior to this renewal city staff came to council, um, as well as shared with the community, the intent to include open space within the definition of parks and recreation. The distribution didn't change, but we included open space maintenance, um, in that, uh, 33% distribution. In addition to that, the team worked with council and community to define what are those things that the BBB covers, meaning that they shared that it helps pay for playgrounds within our parks. It helps with the maintenance, the upkeep, the operations of Jay Lively. It helps with the work that our Discover Flagstaff team does to make sure that folks are coming and being responsible when they visit our community. many of the types of advertising that Lori talked about earlier today. So I wanted to cover a little bit about that because those are conversations that we have with council and the community in preparation for an election, similar to what we're doing with a public safety ballot measure. The BBB tax is 2%. It's a local transaction privilege tax. It's imposed on lodging, restaurant, and lounge businesses. And then that amount of money is defined in the code for these areas of distribution. So arts and science get the 7.5%, economic development 9.5%, beautification the 20%, tourism the 30%, and then parks and recreation the 33%. Last week we talked specifically about tourism, so I thought I would call out how they define tourism in that city code. And that means the guidance, the management, marketing, accommodation, promotion, and encouragement of tourists. So those are the things that that 30% of tourism would go to pay for. When you look further in the code, it talks about that commissions have been delegated the authority to recommend expenditures of the BBB tax. So what that looks like as part of this budget process is staff are taking recommendations to commissions, but commissions are then asking questions. In some cases, like this year, they might ask for some reallocations. So that impacted the tourism sector. the tourism amount by reallocating some of the library dollars back to tourism, changing some of the money that we use for 4th of July back to tourism, as well as changing how we fund solid waste for snow play as well as in the downtown area. All of the intent behind that was to make sure that we're keeping as much money within that tourism fund to be able to spend for the items outlined in that definition. I think the bottom line as staff and the commission and our budget team and the recommended city manager budget, our goal is to fulfill the commitment that we made when we talk about our education, our outreach, and we provide a publicity pamphlet. We talk about what this funding is going to be used for, and those are the things that we focus on when we're bringing items forward as part of this budget process. So we thought this would be a good time to talk about it. We're certainly available if you have any other questions.

Council, any questions? Thank you.

Thank you, Shannon. All right, and with that, that concludes the presentation I have for you this evening. I just wanted to share some additional information. The tentative budget book and all of the available schedules will be made available tomorrow on the city's website, at the city clerk's office, as well as in our city libraries. or available upon request contacting me. Additionally, to meet statute requirements, the tentative budget schedules will be published in the Arizona Daily Sun on June 4th, as well as again on June 11th. So with that, I'm available for any questions.

Council Member House.

Thank you, Mayor. Thank you so much, Heidi. No questions. I just wanted to comment and say thank you and the full team for all of the work that went into this. This was truly a labor of love and it was very clear over the many, many, many, many months that have been spent. contributing to this, thinking things through, and pulling this together. So it's very exciting that we are at this point, and I just wanted to share that appreciation for all of the work that went into this process.

Thank you.

I have a question where it says tentative budget book. Is this that you went ahead and printed what we had and it will be available tomorrow and it will say tentative?

Yes.

Because we formally adopt?

Yes, it's not a formal adoption. It just gives the access to the community to the tentative. So in addition to schedule A through G that actually is provided as legal requirements for the adoption this evening, We actually have the additional schedules that we create here at the city to give more details on all of the revenues, like the grants, things like that. So all of those schedules that we provide, five-year plans, everything is actually available in our tentative budget book that will be published. So there's even more information than what is included in the agenda packet for the legal schedules.

And will those same locations have the adopted budget? Yes. In hard copy there? Yes. Okay, thank you. Council, any additional questions or comments? All right, so I am looking for a motion to read the resolution.

Mayor, I will move to read resolution number 2026-25 by title only.

I'll second. Any discussion? All those in favor? Aye.

Any opposed? All right, city clerk, a resolution of the Flagstaff City Council adopting the tentative budget for the fiscal year 2026-27.

And a motion to adopt?

Mayor, I move to adopt resolution number 2026-25. I'll second.

Any discussion? All those in favor? Aye. Any opposed? All right. Thank you. Moving on down, item B, consideration and adoption of resolution number 2026-18.

Hello, mayor, vice mayor, city council members. I'm back before you for item 11B, where I'm seeking council approval of resolution 2026-18 for adoption of our fiscal year 26-27 public safety personal retirement system, or PSPRS, pension funding policy. We bring this by council annually as required by state statutes to show you what measure we will make to keep our pension funds 100% funded or better. We have two pension funds with PSPRS. One is for fire and one is for police. And at the end of fiscal year 25, we received our actuarial reports for that year. And our plans were at 101.6% funded for fire and 100.2% funded for our police. So we continue to meet that measurement of being over 100% funded in our pension plans. We've been doing a great job since we did the financing several years ago. Our policy continues many of the same practices that we've done that have been very successful to maintaining this pension funding policy and meeting that 100% funded plans. And based on an actuarial model or spreadsheet that our PSPS has provided us, we are expecting they would be fully funded for this end of this fiscal year for both plans. So with that, staff is recommending that council reads and adopts resolution 2026, that's 18. And I'm here for any questions.

Thank you. Council Member House.

Thank you, Mayor. Thank you, Rick. Just a quick question on the percentages to which they're funded. I know in the staff summary, it states that the funding status over 100% is important because of where it positions both of those funds. I'm just wondering if you can explain that a little bit more because I think from appearance, it might look like they're, quote, overfunded, but that's not the reality, correct?

So yes, they are slightly overfunded. When it's above 100%, we have a little bit more assets to pay future liabilities over the next 10, 15, 20 years. The ability to have 100% funded means your assets and future liabilities are in place to meet those future commitments. So you'd like to have at least 100% funded for those future liabilities each year as we grow our police department, pay the wages. We want to make sure that we have the assets set aside to meet those commitments. So 100% is really the target, but a little bit over is okay.

So is it essentially like a safety net for future investment or the declines that could happen or?

So it is a little bit of a safety net. We do see the percentage change year to year. So we have seen it drop down, increase a little bit year to year. So it's just some balancing measure for that target. We also, you know, we do have a contingency reserve fund set aside because we understand that sometimes there's market conditions impacts to our investments and those types of actuarial changes also that could put our plans in a negative or below 100% funding. So we wanna make sure we're at least in that ballpark with our base level of funding near 100%, but we're ready for those commitments if it falls below 100% due to other conditions that we may have.

Thank you very much.

You're very welcome.

Can you talk a little bit about what you are prepared to do if it's trending below 100%?

So we receive annual actuarial reports that PSPRS puts together. We have a small reserve fund set in the general fund, about $2 million or so, that we can immediately make a contribution to refund that up to 100%. We also have our contingency reserve fund, which is about $15 million for both plans. We set that aside when we did the financing back in 2020 because of uncertainty and knowing where this plan would be. So we have that as a tool in our toolbox where we would actually, if we don't have the funding set aside, we would actually provide that funding from that pot of money. It wouldn't impact other general fund operations because we already have that reserved and set aside for use. So that would be our measurement to assure we stay there.

Thank you. And thank you for all your work getting us to 100% and keeping us there.

It was a team effort for sure. I know. Brandy Suda was a big part of that.

Thank you, Brandy.

And council being committed to get there. We appreciate you.

All right. I'm looking for a motion to read the resolution.

Mayor, I will move to read resolution number 2026-18 by title only.

I'll second. Any discussion? All those in favor? Aye. Any opposed?

City Clerk? A resolution of the Flagstaff City Council adopting the City of Flagstaff Public Safety Personnel Retirement System Pension Funding Policy, delegating authority and establishing an effective deed. And a motion to adopt?

Mayor, I move to adopt Resolution Number 2026-18.

I'll second. Any discussion? All those in favor? Aye. Aye. Any opposed? All right, thank you. And hello again. Item C, consideration and adoption of resolution number 2026-20.

Mayor, vice mayor, city council. For item 11C, we are seeking council approval of resolution 2026-20-20 to designate a chief fiscal officer for the Arizona Auditor General's office. This is an annual administrative process that we go through to designate a chief fiscal officer for the city of Flagstaff as required by the Arizona Auditor General's office for the purpose of submitting our annual expenditure limitation report that we do at the end of each fiscal year and we report out where we stand of meeting our commitment of the expenditure limitations set by state statutes. My role as treasurer encompasses the purposes of a chief fiscal officer and therefore we are asking council to designate myself as that chief fiscal officer for that reporting purposes. Thank you and staffers recommended you read and adopt resolution 2026-20.

Council, any questions? Council Member Spence.

Do you accept this responsibility?

I absolutely do because I have an amazing team and I accept it.

Did you want to make a motion, council member?

Yes, I do. Thank you. Okay. Mayor, I'd like to read resolution number 2026-20 by title only. I'll second.

Any discussion? All those in favor? Aye. Any opposed? City Clerk?

A resolution of the Flagstaff City Council designating the Chief Fiscal Officer for officially submitting the fiscal year 2026-2027 expenditure limitation report to the Arizona Auditor General and establishing an effective date.

And a motion to adopt?

Mayor, I move that we adopt resolution number 2026-20. I'll second.

Any discussion? All those in favor? Aye. Aye. Any opposed? All right.

Item D. Hello, one more time, Mayor, Vice Mayor, and City Council members. For Item 11D, we are seeking Council's approval of Resolution 2026-26 for an intergovernmental agreement for transit services with Mountain Lion. With me tonight, we do have Heather DeMolen, our CEO and general manager of Mountain Line. In case you have any hard questions, let's send them her way. But this is really about a renewal of transit services that are expiring at the end of this year. So this IGA with Mountain Line specifically is about delivering transit services within the City of Flagstaff limits. OUR CURRENT IGE IS FOR TRANSIT SERVICES EXPIRING ON JUNE 30TH OF THIS YEAR AND THEREFORE IT DOESN'T HAVE ANY REMAINING EXTENSIONS AND WE NEED TO ENTER INTO A NEW IGA. WE WANT TO ENTER THIS NEW IGA TO CONTINUE THE TRANSIT SERVICES WITH OUR PARTNER MOUNTAIN LINE WHO IS DELIVERING ON OUR BEHALF OF TRANSIT SERVICES RELATED TO THE TRANSIT TAX THAT WE COLLECT FROM OUR CITIZENS. In November of 2024, the transit tax was approved for an increase as well as an extension to June 30th, 2040. And with this IGA and its extensions, it will cover the period remaining of this transportation tax extension. The IGA for transit services outlines the obligations that Mountain Line has, including some general requirements and financial management requirements, as well as it shares the obligations of the city of Flagstaff, our obligations in general, as well as compensation and guidelines. The IGA is materially the same as we have currently approved and are using. There are a few key revisions that we made with this IGA for the new one starting July 1st. Some of the revisions include, we added a section working with Mountain Lion and our pros division. We added a section to allow us to work and negotiate together for transit services that are not usually the services they provide, but for special events. If we have a special event coming up, we can work with them and they can provide the service on our behalf. We didn't have that in our previous IGAs. This would be for things like coming up and you'll hear about is the Drone show getting people to and from large city events that we may want to put on so a good ad for this IGA Section 1.2.5 was amended to provide communication and requirements related to if any fraudulent activity has appeared related to our use of transit taxes and Section 2.4.1 was amended to clarify the roles of our traffic engineer, having the authority after negotiating with Mountain Line, the ability to move existing transit stops as needed for our transportation system. And the last set of amendments were in Section 3.1, amended to clarify how we compensate Mountain Line each year. It was a little vague and just needed a little bit of cleanup on the timing of when we make payments, as well as providing us the ability, myself, to work with Mountain Line to provide additional advances in times of where there's fiscal issues and there's government shutdowns, and we've seen a lot of that this last 12 months or so, where extended government shutdowns limits them from getting their reimbursements that they need to run transit assistance or reimburse capital projects. So we want to be able to work with them and give that short-term funding as they need to keep operations going. So those are the major highlights. And with that, staff is recommending that we read and adopt resolution 2026-26. I'm here for any questions.

Thank you, Rick. Do we have any questions? Oh. You have a motion. I just want to ask since council member Matthews and vice mayor both serve on the mountain line board and Heather is here. Is there anything that you'd just like to call public attention to beyond it being in our agenda, our agenda packet to the agreement to put you on the spot?

I guess my comment, Rick, and thank you for presenting this, I like the modifications and additions you have made and I agree with tightening up some of the language and I appreciate your attention to that.

All right, then Vice Mayor, would you like to make a motion?

It would be my honor. I move that we read resolution number 2026-26 by title only.

Any discussion? All those in favor? Aye. Any opposed?

City Clerk, a resolution of the Flagstaff City Council approving an intergovernmental agreement between the City of Flagstaff and the Northern Arizona Intergovernmental Public Transit Authority for Transit Services.

And a motion to adopt?

I move that we adopt resolution number 2026-26. I'll second.

Any discussion? All those in favor? Aye. Any opposed? All right. Thank you, Rick. Down to item D, E, consideration of adoption, consideration and adoption of resolution number 2026-28.

Hi, Mayor, Council, Kevin Finsel, Deputy City Attorney. So I'm here to present this item and I have some people behind me that can help with any questions if you ask anything that I can't answer. So we're here to talk about the Second Amendment to the Canyon del Rio Development Agreement. Just to acquaint everyone with the area, large circle, we're talking about the area around Little America that's along the JW Powell Extension. This is a more detailed map showing the property owners in the area. You see Canyon del Rio there, turquoise. That's the development we're talking about. We'll also be talking a little bit about Brighton as well as that church parcel, those two tiny parcels. It's actually one parcel to the east of Canyon del Rio. So a little bit of background. The city entered into the first DA with Canyon del Rio in 2019. In July of 2022, council approved a revised alignment for the JWP extension west of South 4th Street Corridor. So going back to this map, prior to that change, the JWP extension was going through that area identified as multiple owners, that 427 acres. So in 2022 is when council, after having many public discussions, decided to adjust the roadway configuration and move it west. And that's really what impacted Canyon del Rio. So if it would have continued to go down through those parcels with the multiple owners and down through that ABOR NAU parcel, it wouldn't have crossed CDR. Once we removed it, now it crosses CDR and it created some of the impacts that led to then the first amendment to the development agreement with CDR in February of 2025. really allowing for the JWP extension to cross the CDR property. So we're here to talk about the Second Amendment, and I'm going to highlight some of the key points in that Second Amendment. The first one, and really the biggest reason why we're here tonight, is the city payment for acquisition of right-of-way for JWP extensions. So through the First Amendment, the city agreed to pay for right-of-way, the right-of-way needed to cross CDR. And the reason why that is different than what we agreed to with the other property owners is what I said before. CDR didn't have this coming across their property initially, and so they agreed to let it cross their property, but in doing so wanted to be compensated for that right away, as well as loss of lot premiums resulting from that extension. So they had a concept plan at the time and was looking at how this road was going to change that plan they already had in place and was looking for some compensation for those loss of lot premiums. So we agreed to that through the First Amendment. That set us out to the First Amendment had each party obtain an appraisal. And then once we received those appraisals back, we met and had negotiations to see if we can reach agreement on the value of the land as well as the loss of lot premiums. And you see those values there on the screen. So that's what staff working with CDR has come up with for the purchase of that right-of-way and what we're seeking council approval of tonight. One note there that I have there at the bottom is the resolution you're being asked to approve tonight does authorize city staff to not only execute the second amendment, the mayor will actually be doing that, but then also execute any additional documents needed for the acquisition of the right-of-way. And those documents would be completed by the city manager. So those documents would not come back to council. The reason why we set it up that way is because after this is agreed to, if it, if council approves the second amendment tonight, that doesn't trigger our requirement to pay for the right away. That's triggered by the actual dedication of the right away that can occur within the next maybe 30 to 60 days. We didn't want to run into a situation where that was triggered and council was on break. So we wanted to be prepared. So city manager is authorized through the resolution to approve those documents. CDR is going to construct a roundabout at 4th and Whetstone and I'll show you a map in a second here. So this ended up in the Second Amendment because one of the things CDR had to do as a result of the First Amendment was do an updated traffic statement because they were moving around some things in their second phase of development. That updated traffic statement impacted a need or triggered a need for an improvement at Whetstone and South 4th Street. And what the city is looking for there is a roundabout. The reason why we didn't go to a stoplight at that intersection was we had some slope issues with the approach from Whetstone. So really the roundabout is what worked best. But CDR really isn't responsible for that entire improvement. They only have a certain proportional share of that improvement. We've also asked CDR to construct what we're calling the east stub out. for that roundabout, that goes to those church properties I showed on the map, as well as that step out would lead to a city parcel to the east, as well as that's where the High Country Humane East Campus is located. So that east step out, we're trying to set it up so that those three property owners can get access to JWP on that roundabout. And so because of that, we are making a contribution towards the roundabout and you'll see that in the Second Amendment. But here's a map. this is an aerial view of where this roundabout will be located so this we're calling it the whetstone roundabout but that is west stone to the west and north south that's north that's south fourth street and then to the east where you see that little dirt trail that's currently a foots connection there and then another dirt road to the east that's the road that leads to the high country humane east campus or butler campus i think they're calling it And then this is a design of the roundabout. This is attached as an exhibit to the Second Amendment. This isn't the official design. This is what we're calling the concept roundabout. And then we will work with CDR on 60% design plans to actually finalize what this roundabout will look like. But you can see there, and I'm going to talk about this in a second, that roundabout actually pushes on to the adjacent properties to the east, the church property as well as the city parcel. The city parcel is that area It's in red there, so that little corner, that's actually on the city parcel there. So we're gonna be talking about obtaining the right-of-way needed for that roundabout. So through the Second Amendment, the city is agreeing to be responsible for acquiring that additional right-of-way. Some will be fee simple for the actual road. We're also gonna be getting some easements needed for the construction of the roundabout. So we are taking on that responsibility of working with that adjacent property, that church property to the east, We've been in conversations with them for the past few months. We're optimistic that we're going to be able to work out a deal that works both for the city and for the church. And again, we set it up in a way to hopefully make it easy for the church to connect in the future by asking CDR to construct that stub out to the east. The fourth item to talk about, we did have a slight revision to the retaining walls that are necessary for a piece of the JWP extension that runs across that area just southwest of that roundabout. We call it the R1 parcel. That area is going to need some retaining walls along the west side or northwest side of JWP as it runs all across that parcel. And the agreement, the First Amendment, we made a pretty specific identification of what that material was supposed to be. CDR has come in and identified this lock and load retaining wall stone setup or that type of material. Our engineering team has looked at it. We actually think it's a better material for the retaining walls. So we're making that change to allow for that CDR to construct those retaining walls with that material. We will still be approving the material when we see it, when it comes in for things like color and aesthetics to make sure that the key, the reason why we had that first material in there, we didn't want it to just be flat concrete. And this new material is not that, but we still have the ability to approve it when it comes in. And then the final item, and this item actually got added early this morning by me, and this was something I wanted to add, and I apologize for the late addition, but I wanted to call it out here. It is in the version of the DA, the Second Amendment to the DA, that's currently attached to the agenda item, but I wanted to call it out specifically. So going back to the map, I want to point out that Brighton parcel. So the Brighton parcel east of Canyon Del Rio, that's not owned by Canyon Del Rio, but you can see where the JWP extension just cuts across that northwest corner. And so we talk about the dedication of that piece by Brighton in our First Amendment. What we didn't do a very good job of was really nail down when that payment is going to be made. So we are paying for that piece of that Brighton parcel, but we didn't say when. So now we're saying we're gonna pay 30 days within 30 days after dedication of that right away area for that piece of the extension. And then we also built in an acknowledgement by CDR. And the reason why we did that is because there is a separate agreement between CDR and Brighton that discusses the dedication of that right away for that piece of the extension. We are not a party to that agreement, so we don't have the ability to enforce it. So we don't have the ability to enforce that agreement to force Brighton to actually dedicate the land. So we built into the agreement, and CDR agreed to it, that they acknowledge that if Brighton, for some reason, does not dedicate as they're required to under that separate agreement, that that would be a breach of our agreement, and we can see damages if our costs happen to go up as a result of that. So we built that in, and CDR understood why we asked for it. And like I said, they've agreed to that already. But I just wanted to call that out in case a member of the public had looked at this draft prior to this morning and didn't see that piece in there. I just wanted to call it out. And that's really it. Those are the main pieces of the second amendment to the DA. And I'm here if you have any questions.

Council, any questions? I'm going to take public comment. All right. So we have Winnie Eniga.

Welcome.

Thank you.

And I apologize, I received a notification of this meeting sent by Capstone and it arrived at my home last Thursday and no one was available over the week to answer my questions. but they have been, and I don't know if I put my finger there, does it make any change up there? Do you see up in the top right-hand corner there is on a trust, state trust land, 17 acres? That borders my property, which is to the east of that, and what I was trying to find out was how it affected my property, and the letter didn't explain anything, and Um, in fact, both communications that we received were not, not very explanatory, but as I listened to this, it doesn't affect, um, my property at all. And so, uh, um, I withdraw my comments. Thank you.

Well, thank you. Counsel, please.

So, yeah, um, when he did get in touch with staff and we've been talking to her and I don't know if you saw, she spoke earlier and Paul mood stepped out and had a conversation with her. And we've looked at that notice. So what we do sometimes is you have to notice for the amendment. Sometimes we expand it, thinking it's beneficial to capture more people so everybody knows what we're doing. But in doing so, I think we need to do a better job of detailing what is actually being done so that property owners that may be a little farther away than the actual piece we're working on have a better understanding of why they received it and what's really going on. So we'll improve that in the future.

Thank you. All right, council, I don't see any questions or comments, so I will entertain a motion.

Mayor, I move that we read resolution number 2026-28 by title only.

I'll second. Any discussion? All those in favor? Aye. Aye. Any opposed?

City Clerk? A resolution of the Flagstaff City Council authorizing the second amendment to development agreement between CDR DevCorp LTD, CDR Land Investors II LLC, and the City of Flagstaff related to the development of the Canyon del Rio subdivision and establishing an effective date.

And a motion to adopt?

So moved.

I'll second.

Any discussion? All those in favor? Aye. All right. Item F, consideration and adoption of resolution number 2026-31.

Good evening, Mayor and Council. Stacey Salzberg, I serve as your Communication and Civic Engagement Director. So before you tonight is a resolution to canvass and make official the results of the May 19th, 2026 special election, asking voters to ratify the Flagstaff Regional Land Use Plan 2045. Um, there was a, this was a ballot by mail election. Um, there was a 27.5% voter turnout with 10,439 ballots cast. 57% of votes were in support of the ratification, uh, with 43% opposed. Um, with the adoption of this resolution, um, the Flagstaff regional land use plan 2045 will be in effect. And I would be remiss to fail to acknowledge the tremendous work that went into this entire process. I had one very small part of this, Sarah Dechter and her team just in the development of this plan and the community outreach. I just wanted to publicly thank her for the work that she put into this.

If I could, and I know there are lots of people, lots of people to thank, but Sarah, would you stand up and take a bow, please? I'd also like to note that this was higher voter turnout than the last regional plan and more yes votes than the last regional plan. All right, anything else? Okay, then I am looking for a motion to read the resolution.

Madam Mayor, I'd like to read resolution 2026-31 by title only. I'll second.

Any discussion? All those in favor? Aye. Any opposed? City Clerk?

A resolution of the Flagstaff City Council declaring official and adopting the results of the special election held on May 19th, 2026.

Mayor, I'd like to move that we adopt resolution 2026-31. I'll second.

Any discussion? All those in favor? Aye. Any opposed? All right. All right, down to item number 12, 4th of July, drone show updates.

Good afternoon, Mayor and Council. I'm Haley Reynolds, the Events and Marketing Manager with PROSE, bringing forward some 4th of July drone show updates along with my counterpart, Lori Pappas, with Economic Vitality, as well as Lieutenant Eberhardt with Flag PD. One sec, please. No, the right one is in the packet. I apologize. All right, well, we'll just restart. Haley Reynolds with PROSE bringing forward some 4th of July drone show updates. Can we go to the next slide, please? Perfect. So with an event of this size, we're starting with the emergency management team to construct an Incident Action Plan, that looks like bringing forward our partners with Flag PD, Flag Fire, Public Works, PROS, as well as some partners within Coconino County to develop public safety plan and emergency plan should an event occur, as well as brainstorm things like traffic control, public notification, on-site event safety, event flow and some multimodal transportation topics. Next slide, please. So what have we been doing since we brought this contract forward for approval in March? Tons of stuff. We've met with our vendor, our drone vendor onsite at Fox Glen Park. That meeting allowed us to determine a launch site, a landing site, a true safety zone as well as flying a drone up from the viewer area to determine any block of sight or like obstructed view, which allows us to then put in place event features so the public isn't gonna sit there, hold their spot and then be incredibly disappointed when they cannot see these drones in the sky. We've also met with, handful of external partners. Those partners range from FUSD, NAU, the Flagstaff Mall, as well as PD, which is an internal partner, Quail Construction, who will be managing our traffic control plan to determine parking as well as transportation with the support of Mountain Line. We have been working on what on-site activation looks like. That's our bread and butter within PROSE if you're coming as a community member or a visitorship to participate in the event, what you can expect, how you can get there, live music, bouncy houses, that kind of a thing. And then tons of meetings onsite with all of those vendors to determine how they're getting in, what their setup is, what the true scope is gonna look like so that we can plan staffing levels, access, and meet any of their needs.

Next slide.

So when we're talking event activation, event activation is gonna begin at 4 p.m. and run just up until the drones launch at 9 p.m. with all of that activation occurring on the multipurpose fields highlighted in purple, as well as that southern parking lot within Fox Glen Park. You can expect in the parking lot to see our wonderful fire department set up for anybody to, need assistance, as well as portable restrooms, food vendors, and then as you get into the multi-purpose field, you'll see we have a stage set up, we've got some live music, as well as a DJ planned to keep that going, and then some yard games and bounce houses, as well as flag PD along that back stretch of the park, and I'm sure throughout the park as well. The goal with event activation is you As a community member, a visitor are gonna come in, pick your spot for the evening, and then just enjoy the activities. It's very passive while still being activated to keep you there as long as possible. If you're coming to the event and wish to park within the vicinity, we've partnered with FUSD to identify parking spaces within Sonoma Middle School There's about 490 available parking spaces. All of that is gonna be pre-reserved and paid for parking through our recreation software. This is your opportunity if you would prefer to not utilize a park and ride service or utilize our foot trail to get here. This is how you're gonna need to reserve in advance. And that messaging will go out through Discover Flagstaff. If you have an ADA placard and are wishing to park at the event, we are again doing pre-reserved parking. ADA parking will be at no cost, but still in advance to ensure you have a location. That's gonna be that blue segment within the parking lot. There's about 15 spaces within that chunk, and we anticipate that to go relatively quickly. The rest of the northern parking lot, which is highlighted in orange, is our transportation stationing. That is where Mountain Line will be bringing in our park and ride bussers, as well as staging buses for their exit at the end of the event. And then we get into park and ride. We have been able to communicate and partner with NAU to utilize their P62 parking lots. That offers us just under 300 parking spaces. And then the Flagstaff Mall has offered us just under 900 parking spaces in those parking lots along Mall Way. They would be bordering like the Dillards if you're familiar with the mall. There are bus stops at each location for the park and ride service. We're anticipating around a 20 minute frequency beginning at 4 p.m. with the last bus dropping off to Fox Glen at 8 p.m. And then from there, those buses will be stacking in the lot for an exit around 9.30. That allows the drivers, I believe, needed some downtime as well as individuals wanting to just get their spot on the bus. They can get on the bus and then once the bus is full, it will exit. And then those will run until around 11 p.m. And all of that messaging is going to go through Discover Flagstaff. So I will turn it over to Lori.

Thanks, Haley. Good afternoon, Mayor, Vice Mayor, and Council Members, Lori Pappas, Discover Flagstaff. We are working alongside pros for the second time on a drone show. Some of you may recall last year's drone show. For the first time, drones adorned our night skies. If you had a chance, if you were in town and had a chance to experience it, it It was pretty darn cool. It was pretty darn special. It just told a Flagstaff story from dark skies and culture to encouraging visitation, our lunar legacy, and the story goes on. And it will be an elaborate story again this year. There's been quite a few people working on it. In the next few slides, here we go again. Oh, here we go. I think we're good. Yep, so in the next few slides I'll show some creative and I do want to back up and share that what we are intending to drive literally is more overnight stays. So 4th of July is on Saturday. It's our intent and this is always our intent. Our intent is to encourage that family from Phoenix or that family from Tucson which is the geography that we're targeting to get up here early or both and or stay an extra one or two nights. That's the goal. Look, we all know how much there is to do in town. It's up to us to educate them. And we are employing both or all three owned, earned, and paid media platforms to accomplish that. So we've already secured some linear TV. locally we've been hopefully you've seen some print ads Flagstaff Business News carried a badge on their front page supporting the event we're all driving to our website and the website is where the opportunity exists to tell a fuller story of why they need to get here and because the competition is strong right we know there's all kinds of shows happening in the valley but again It's the epic weather. It's the epic dark skies. It's the easy access to the national parks and monuments. It's the festivals. It just goes on and on. So here's a little sample of some of the creative that we are and have pushed out. I want to stop here. On this particular slide, the insert in the middle, our good friends at Legends in downtown Phoenix, they do our bigger billboard. they offered this read, we'll call it a ticker, and it's a motion ticker that just rotates at no cost to us. And think about the foot traffic that is in downtown Phoenix. Not only is it the residents of the massive metro Phoenix area, but it's also people that are attending, that are tourists, visitors, that are attending conferences or meetings and so forth. So really, it's just, it's a great opportunity. We'll also be running in traditional paid media. So we have secured a contract with the Arizona Daily Sun and we'll be in their special commemorative 4th of July insert. I think we're all familiar with that. And then we've got some additional ads too that we're running. Awaiting to hear from CAF Radio. Hoping to be running with them too. Let's see here. That's it.

It's a good thing. It's a good day. Council, do we have any questions or comments? Council Member Spence.

Thank you, Mayor. Regarding the Sonoma parking lot for paid parking, has a price been established for parking at that location?

Yes, so we're planning on $5 per space. That's the general cost within town. That's what Coconino County fair charges to park. Trying to keep it reasonable, but also incentivize other modes of transportation.

Thank you, that certainly is reasonable. Council Member Garcia.

Thank you, Madam Mayor. I was curious to know what's the name of the site that folks can go to to pre-register for parking?

So it'll be hosted on our recreation software and then I believe Discover Flagstaff is gonna push that out via QR code with a link to the website. Do you want the website? It's www.prose.flagstaffaz.gov. And it is not currently live on the site. It should be up next week for sale.

Okay. Thank you for that. And I was also curious if you guys are going to be like, um, Outlining the urban trail systems that leads to that area in that like in the same General place where you could buy the tickets or have other information about mountain line tours or anything like that just to Help people understand that there are trails that will take them from their neighborhood to the drones show We certainly are yeah rest assured we certainly are there's so many details that are still coming together and

PROSE has done a great job in shifting. This is our second drone show. So as soon as we get those details finalized, we are very prepared. Last year we had all kinds of routes on our graphics and we intend to do the same thing because we know it's a huge educational effort, right? People want to know how to do it the simplest way. And hats off to PROSE for getting a digital version. It's awesome.

Yeah, thank you for all the departments that collaborated on this, including the PD and all the safety folks that will be out there to make this a successful and safe evening. Thank you to the pros department. I know that this is your big event for the year, one of your big events for the year. So thank you for all the work that you've done on it, and I'm excited. I'm really excited.

Council Member Matthews.

Thank you, Mayor. Thank you for the presentation and everyone and all the departments collaborating on this. Last year, the drone show was great, but the traffic was kind of a nightmare, and it sounds like you guys are really taking those learned experiences and addressed them really well. So thank you so much for that. Did I miss it? But is Mountain Line, will there be a shuttle like people can park at different locations and then they'll shuttle them in?

Yes so Mountain Line will be providing shuttle service from NAU P62 parking lots as well as the Flagstaff Mall.

Perfect thank you so much and I just love the advertising too I think who wouldn't want to come to Flagstaff with our beautiful weather because it's already so hot down in the valley that you know hopefully people come up and and make a weekend of it why wouldn't they so great job to pros and to Discover Flagstaff and just everybody, their efforts into it. And we've got so many great events this year. It should be a, you know, bang up year. So thank you so much for all the work.

Thank you. Are you allowing chairs at the event? And if so, can people bring them on the mountain line bus?

They can. So some of the messaging that'll go out related to mountain line is what you're bringing essentially needs to fit in your lap to not take up more space than an individual. But yes, we're allowing chairs. We're not allowing pop-up tents or rolling coolers just because those are gonna take up additional space within the bus and the park.

Thank you. All right, I don't see any other comments. So appreciate it.

Thank you.

All right. We are down to open call to the public, and I do not see any public here for that. So then we're announcements and updates to from council and city manager. And I will start with Council Member Matthews.

I have nothing tonight. Thank you, Mayor.

Council Member Garcia.

Thank you, Madam Mayor. I'd like to invite the community to come out this Thursday, June 4th at 7 a.m. The Market of Dreams is gonna be having their 4th Street Corridor Business Influencer 4th Street Improvement Discussion and Meeting where we will be sharing ideas that community members and other business owners in the 4th Street area can share their ideas with staff on what kind of improvements they would like to see in the future. On Friday, June 5th, I will be here at Council Chambers for the FPD promotional ceremony. After that, of course, we have the First Friday Art Walk, and I will be attending Open Doors Art in Action at the Episcopal Church at 6 p.m. for their programming, which will last an hour and a half and comes with free hors d'oeuvres, 423 North Beaver Street. Of course, we'll probably be hearing more about Route 66 Centennial in the Hall of Blue. I'll let other folks speak to that. Thank you.

Council Member Aslan. Vice Mayor.

It is a very busy weekend. I will be attending the Fourth Street meeting that Council Member Garcia mentioned at 7 a.m. It's very early to be thinking, but we'll be there. Friday is Art Walk. Saturday is the Route 66 Centennial Celebration, and again, I just hope everyone can come downtown. There's a lot of different activities going on, some classic cars and face painting and things for the kiddos and music. It's just going to be a great, great event. Saturday and Sunday, the Hullabaloo Festival will be in Wheeler Park. And if you like music and fun and are looking for something to entertain the family, that's a great festival. So I hope to see you there. Council Member House.

The only thing I'll add is that the promotional and departmental awards ceremony for the police department starts at 5 p.m. here in council chambers. Thank you.

Councilmember Spence Thank You mayor This last Friday I attended the hunger action partnership quarterly meeting and I want to report to the council that we have a great advocate with regard to hunger in our community these This partnership is really on top of the current hunger issues in our community, and they're gearing up for how it's going to get worse with the implementation of the federal government's cutback on SNAP and WIC. So rest assured there's a group of advocates that are paying attention. Thank you.

Nothing from me.

City Manager? Mayor, Council, nothing from me, but thanks for a great meeting tonight. Then we are adjourned.