Flagstaff Council Adopts PC Zone and 2024 Building Codes Amid Housing Affordability Crisis; Realtors Demand Urgency on LASCAP Reforms
FLAGSTAFF, ARIZONA — October 6, 2026

Flagstaff Council Adopts PC Zone and 2024 Building Codes Amid Housing Affordability Crisis; Realtors Demand Urgency on LASCAP Reforms

Flagstaff City Council adopted new Planned Community zoning framework and rezoned industrial park for composting/recycling hub, approved 2024 building/energy codes after heated housing affordability debate, and authorized major capital projects including $6.85M Rio de Flag/Lone Tree real estate acquisition, amid city-wide concern over housing emergency and regulatory urgency.


Flagstaff Council Adopts PC Zone and 2024 Building Codes Amid Housing Affordability Crisis; Realtors Demand Urgency on LASCAP Reforms

On October 6, 2026, Flagstaff City Council passed all six major legislative items on its agenda with unanimous 6–0 votes, including a new Planned Community zoning framework, the 2024 International Building and Energy Code suite, an industrial park rezoning enabling a circular waste hub, and a $6.85 million real estate acquisition for flood control and transportation infrastructure. Yet beneath the procedural unanimity lay profound tension: realtors, builders, and Lori Matthews warned that adopting stricter codes before housing-cost-reduction reforms are implemented will worsen an already severe affordability crisis, while sustainability advocates and housing nonprofits countered that the codes are essential for climate and health goals and represent only 1–5% of home cost.

The meeting illuminated a fundamental governance bind: Flagstaff declared a housing emergency in December 2020 when median home prices had risen 53% over a decade; six years later, prices have climbed another 63% in five years (from ~$420K in 2020 to $685K+ by July 2025), while median household income remains flat at ~$70K. The realtor association's keynote testimony made the arithmetic stark: a household would need $165K–$177K annual income to afford a median single-family home. Yet the city is adopting codes estimated to add $8K–$27K per home—with no guaranteed offset from LASCAP housing reforms still 9 months from council approval.

Key Speeches

"Nearly six years ago, the city of Flagstaff declared a housing emergency. Since then, the median price of housing has increased dramatically and the gap between local incomes and the cost of home ownership has continued to grow. City's own analysis has now identified meaningful reforms that can help. We respectfully ask that attainable home ownership be elevated as a priority and that those reforms move forward with urgency." — Gary Nelson, Northern Arizona Association of Realtors

"Housing attainability affects more than the price of a home. It affects the who gets to live here. It affects whether families remain here. It affects our schools, our transportation system, our workforce, our businesses, our climate objectives, and ultimately the kind of community Flagstaff becomes." — Gary Nelson, Northern Arizona Association of Realtors

"I'm really frustrated I guess if we have to adopt the energy codes or adopt some not the energy codes, the building codes by the first of the year. Uh that makes a little bit more difficult. But we've been pushing back to say what are the offsets. I've been very clear about saying I will support energy code changes and stuff if we can offset it and it doesn't cost our homeowners anymore because $25,000 on a $500,000 house, if you can even find a house at that price, is a big deal." — Council Member Lori Matthews

"I do believe time is of the essence and we're going as quick as we can and I know that Michelle and Nicole and our housing team and everyone knows that time is of the essence. They're hearing it from council all of the time." — Vice Mayor Miranda Sweet

Timeline

Planned Community Zone (Items 10D – Resolution 2026-46 and Ordinance 2026-20)

2024 International Building and Energy Codes (Items 10E – Resolution 2026-47 and Ordinance 2026-24)

This item consumed the bulk of the meeting's deliberation and public comment (13+ speakers over ~90 minutes).

El Paso Industrial Park Rezoning (Item 11A – Ordinance 2026-23, First Read)

Rio de Flag Flood Control & Lone Tree Overpass Real Estate Purchase (Item 12C)

Capital Bonding Reimbursement Intent (Item 12A – Resolution 2026-49)

Inner Basin Waterline Contract (Item 10C)

Easement Acceptance (Item 10F – Ordinance 2026-21)

Fanning Wash Culvert at Steve Boulevard (Item 12B – Ordinance 2026-22)

Opposition

Number of speakers against codes: 2 (Charity Lee for Capstone Homes; David Spence sought delay; no formal public opposition beyond builders/realtors).

Main concerns (developers, builders, realtors):

  1. Code-cost impacts (Capstone: $27K per 1,900 sq ft home; NAHB national average: $131,734 ~26% of price) are being imposed before LASCAP housing-cost-reduction reforms are finalized (9 months away).
  2. Timing mismatch: Codes will reduce housing affordability in the near term with promise of offset from uncertain future reforms; violates principle that cost-reduction measures should precede cost-addition measures.
  3. Non-combustible siding supply/demand: Increased code demand may drive cost reductions in 1–2 months if delayed; material availability not yet reflected in current cost estimates.
  4. Prescriptive-path flexibility not extended to performance-path calculations, preventing builders from choosing affordable efficiency options meeting same energy standards (Phil Cone, NAHA).
  5. Workforce housing implications: Teachers, first responders, healthcare workers, construction workers already struggling to afford Flagstaff; codes worsen gap.
  6. Alternative jurisdictions (ICC 700, HERS index) may offer more affordable pathways to efficiency; should be explored before final adoption.
  7. Urgency disconnect: City declared housing emergency 6 years ago; prices up 63% in 5 years; declared twin emergencies should yield matching urgency on both affordability and environmental goals (Lori Matthews).

Most compelling arguments:

Organized groups:

Support

Number of speakers for codes: 3 (Michelle James, Christy Bolognani, Tyler Denham).

Main arguments:

  1. Energy codes represent only 1–5% of home cost; not a dominant driver of housing costs relative to zoning, land, labor, materials, financing, supply/demand dynamics.
  2. 2024 codes deliver 12–20% greenhouse gas reduction from new buildings; reduce energy bills and improve indoor comfort post-occupancy.
  3. Flagstaff would be "one of the last major jurisdictions in the state" to adopt 2024 codes (most already adopted); non-adoption puts city out of step with market and state norms.
  4. Option 2 (base + readiness appendices + radon mitigation) is genuine compromise; much of cost stems from base-code-to-2024 upgrade and radon/wildfire measures, not items under policy debate.
  5. Staff has already implemented six low-hanging-fruit LASCAP reforms (subdivisions, ADUs, middle housing, high-occupancy housing, PRD updates, RPO tweaks); more coming in 9 months; codes should not be delayed pending completion of multi-year LASCAP cycle.
  6. Radon and wildfire mitigation are uncontroversial; health/safety imperative transcends affordability debate.
  7. Delaying codes to gather cost data from other cities and material-supply trends risks Jan 6, 2027 insurance audit deadline and signals wavering to state/federal partners.

Most compelling arguments:

Organized groups:

Project Details

Planned Community Zone (Ordinance 2026-20)

El Paso Industrial Park Rezoning (Ordinance 2026-23)

2024 International Building and Energy Codes (Ordinance 2026-24)

Rio de Flag Flood Control & Lone Tree Overpass Real Estate Acquisition

Vote Breakdown

Planned Community Zone

2024 Building and Energy Codes

El Paso Industrial Park Rezoning

Rio de Flag / Lone Tree Real Estate Purchase

Capital Bonding Reimbursement Intent

Inner Basin Waterline Contract

Fanning Wash Culvert

Easement Acceptance

Minute Approvals (Aug 25 & Sept 8, 2026 meetings)

Consent Agenda Items A, B, D, E

Airport Grant Agreement (Item 9C)

Executive Session Authorization (Item 10A)

Outcome & Next Steps

Planned Community Zone: Ordinance 2026-20 adopted; zoning framework now in effect. Resource protection standards codified as mandatory non-modifiable element of PCMP. Resource Protection Overlay pilot program codification (conversion to permanent code) expected 3–4 months (pending Planning & Zoning Commission work session, public hearing, city council approval).

2024 Building and Energy Codes: Ordinance 2026-24 adopted; Option 2 (base code + readiness appendices + radon mitigation) effective upon publication. January 6

View source transcript ▼

Source: City of Flagstaff Regular Council Meeting - October 6, 2026 — October 6, 2026. Auto-generated YouTube transcript; may contain transcription errors.

All right, we are ready to get started. Today is Tuesday, October 6, 2026, and this is the city council's regular meeting. I am calling this to order and giving notice to the public and to the council that at this meeting the council may vote to go into executive session which will not be open to the public for discussion and consultation with the city's attorneys for legal advice on any item listed on the following agenda. Can we have roll call? Mayor Daget here. Vice Mayor here.

Council member Alen here. Council member House here. Council member Matthews here. Council member Spence here. Council member Alen, would you lead us in the pledge of allegiance? My pleasure. Please stand as you're able. Vice Mayor, could you read our mission statement? The mission of the city of Flagstaff is to protect and enhance the quality of life for all. And Council Member House, the land acknowledgement. Thank you, mayor.

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

Open call to the public enables the public to address the council about an item that is not on the prepared agenda. Comments related to items that are on the agenda will be taken at the time that that item is discussed. It appears on the uh agenda twice, once in the beginning, once in the end. You have three minutes and there is a clock right down here in front of me. First up, we have Steven Kudson. just she's going to turn the microphone on. Thank you. Can you hear me? Okay, I'm ready.

I come tonight before you to speak against Proposition 404 and 405. And I have, I believe, good reason for that. The 405 is essentially a tax on the worker who is already burdened with cost. This adds to the cost. That's 405. I mean 404. 405 is a general obligation bond that is paid for by the secondary property tax. That tax goes to land order and that is in turn passed down to the worker the renter and so again it is the burden of the worker to pay that.

Now, um, in a bond, who buys the R city bonds and why? If you buy a bond, say, uh, we have a $40 million bond that we're trying to issue now, and you buy $1 million worth of that, every year, you get $50,000 back. Taxfree. Tax-free. Now, who can afford to buy those? Well, the millionaire class and the billionaire class. But who pays the worker? So essentially bonds are trickle up economics. You're putting burden paying the top from the bottom. And that's exactly why I'm against it.

Also, there is two kinds of bonds. This one, the general um obligation bond, which essentially is a city shopping spree, and the other is a revenue generating bond, which does make sense. It will help the city buy what it needs. If you invested $40 million in a solar farm, that produces twice as much energy as the city uses every year as income as opposed to payment. Thank you. Thank you, Pamela Melton. My name is Pamela Melton. I live in Flagstaff. I'm a registered voter for November 3rd.

I sent a certified letter to this council on September 21st requesting written answers to four questions about Prop 405. I received a response, but one of the four questions was dodged and I'm putting that on the record today. First, the question that was dodged. I asked council to adopt a resolution.

The text is in my letter that no public or private funds will be used to acquire ALPRs, facial recognition, AI powered video analytics, biometric tracking, or drone surveillance without a separate council vote following a public hearing. The city's written response said, "I am unable to answer this question for city council." Then it pointed me to a $100,000 charter threshold and a website. That's not an answer. That's a redirect.

This council terminated the flock contract in December after extended public comment. All cameras were removed by the end of February. Since then, no council action has stated what, if anything, replaced that capability. The flock cameras were removed. That was a real win.

What was not removed is the capability to bring plate reading back through a different vendor through an API connection diverserm which this council approved on September 15th funded by a bond with no exclusions without public comment or a new vote on surveillance. Flagstaff PD is an Axon body for beta partner. The city confirmed in writing that it currently uses AI to draft reports from body camera footage. Axon also sells ALPR.

The city's written response confirmed that Prop 405's equipment scope does not include ALPR. It also said, and I'm quoting, there may be AI tools requested. That's an open door. The only safeguard is an advance advisory task force and $100,000 spending threshold. The ballot says equipment. That's all the constraint there is for 20 years. That's a generation. The city's response also said additional technologies would be brought before council and community for further discussion.

That's a statement of intent from one administration. It's not in the ballot. It's not a resolution. The next city council can ignore it. The list is in my letter dated September 21st. I'm asking this council to confirm on the record today whether those items are excluded from Prop 405 bond spending, if any of them could be purchased with bond proceeds without separate public vote. Say so. I'd rather have a no than a redirect. Thank you. Thank you, Jessica Drum.

Good afternoon, mayor, vice mayor, council members. My name is Jessica Drum and I'm a community relations manager at Northern Arizona Healthcare. Um, today I am here to talk to you about some upcoming changes to Medicaid. On July 20 or July 4th, excuse me, 2025, a new federal law called HR1, which is also known as the One Big Beautiful Bill Act, was passed by Congress.

Over the coming years, this law will create multiple changes to how Arizona's Medicaid program, called access, determines how people are eligible, how access members maintain coverage, and how healthcare is paid for throughout Arizona. Some of the coming changes mean that people who no longer meet federal eligibility requirements may lose access to full Medicaid coverage and may instead qualify for only the federal emergency services when applicable.

Access estimates that approximately 34,000 currently enrolled members may be impacted statewide and is implementing policy system and communication changes to comply with these federal requirements. And starting on January 1st, 2027, most individuals in the adult group for the adult access group will need to verify their access eligibility every six months instead of once a year. And at the same time, HR1 will also add work requirements for adults to maintain their Medicaid eligibility.

There are a number of exceptions to these work requirements, but they do mandate 80 hours of paid or volunteer service per month for um access enrolles. Access recently sent notices to impacted members to explain their options, and we encourage members who receive those letters to please open them and to respond to access mail, particularly requests for information. We also encourage um all access members to log onto their portal and make sure that their in their contact information is correct.

Um, Northern Arizona Healthc Care's hospitals are what's considered um, disproportionate share hospitals. And so this means that our hospitals both in Flagstaff and down in Cottonwood receive a or treat a large or disproportionate share of Medicaid and uninsured individuals. Um, and we're actively monitoring the anticipated changes to come down from this bill because a lot of the rules are still being written and uh, how they'll impact the communities we serve.

We're also working closely with Cookanino County Health and Human Services and other community organizations to address these upcoming changes, including co-hosting a community meeting later in October. Um, as these plans are finalized, we'll share the details, invite you and all and community members to attend. Um, and we're also happy to discuss the impacts of the one big beautiful bill act or HR1 further once the rules are finalized and we can have a robust discussion around the impacts.

um to our community. So, thank you. Thank you. All right. Next up, we have proclamations and we have three proclamations today. The first is customer service representatives week. The next is week without driving and the third is indigenous people's day. And we will do it in uh we will read them in this order.

And if you're here for anyone, we're going to ask you to come down and um while the proclamation is read, we'll take a photo and then if someone from your group would like to say something, that would be welcomed. So, first up, we have customer service representatives week. Hello. All right. All right, it looks like we're all set.

Customer service representatives week is an international celebration of the importance of customer service and of the people who serve and support customers on a daily basis. Customer service representatives week has been celebrated since 1987. A high point in the week's long history came in 1992 when the US Congress proclaimed customer service representatives week a nationally recognized event which is celebrated annually during the first full week in October.

Over the years thousands of companies across the United States and around the world have celebrated customer service representatives week. They represent leading financial, health care insurance manufacturing retail hospitality communications nonprofits educational organizations, and government agencies. A business built on customer service understands and anticipates the customer's needs.

It designs goods and services to meet those needs and builds products that perform to customer expectations. The city of Flagstaff prides itself on excellent customer service and this is only possible because of the dedication from our amazing staff. So now there now therefore I vice mayor on behalf of Mayor Becky Daget mayor of the city of Flagstaff do hereby proclaim October 5th through the 9th 2026 as customer service representatives week. Thank you. You're not forced to. Oh, it's okay. Okay.

Hi, I'm Jessica KDson, customer service director, and these are many members of the customer service section, and we just thank you for the recognition and proclamation. That was Next up, we have week without driving in Flagstaff. The city of Flagstaff has committed to a big shift in its transportation systems to empower multimmodal transportation such as walking, bicycling, microobility, and public transit.

The city of Flagstaff recognizes that ready access to and support of transportation options other than driving a personal vehicle is an important equity issue for city residents. Efficient and diverse transportation alternatives, increase community mobility, reduce the risk of collisions resulting in injury and death, and help provide traffic help manage traffic congestion.

Choice in transportation modes improves quality of life for Flagstaff residents and supports community values related to sense of place, community character, environmental sustainability, and outdoor and nature access. National Week Without Driving, a program of America Walks, asks participants to understand daily life for the millions of people who cannot drive due to age, disability, income, or other barriers by reducing or eliminating their own driving for a single week.

The city of Flagstaff recognizes that many residents already cannot or do not drive due to circumstances, including those listed above, and those residents deserve transportation options which are equally as safe, comfortable, and and viable as driving. Now therefore, I, Mayor Becky Daget, mayor of the city of Flagstaff, do hereby proclaim October 1st through 8th, 2026 as week without driving in Flagstaff. I would like to speak. All right. Thank you, Mayor Daget and members of council.

I'd like to note for those that don't know that I am one such person who lives in the city of Flagstaff. In fact, I'm a child of Flagstaff. I grew up here before leaving for a while and returning who doesn't drive. and I haven't driven except for two years of my life between 16 and 18 in this very city. I have choose not to drive for a variety of reasons including anxiety and other conditions. But there are many people who don't have a choice about whether or not they can drive.

Those people exist in your community. They are your neighbors. They're on your sidewalks, in your bike lanes, and taking the buses. They deserve your respect, your recognition, your concern for their well-being. and to be supported by city staff and city programming that recognizes that transportation systems are about moving people, not moving cars. Thank you. Thank you. Okay, it's hard to get up here. Right.

Whereas the city of Flagstaff recognizes that it is built on lands known, inhabited, loved, and respected by indigenous people since time immemorial. And the city of Flagstaff was built and is still energized and maintained and shaped today with indigenous people's knowledge labor technology science philosophy, arts, and commerce.

And advocating for and supporting actions that lead to the advancement of social and environmental justice for indigenous communities is a priority per city council goals and objectives. And the city of Flagstaff understands that government entities, organizations, and public institutions have a responsibility to enact policies to combat racism and to build justice and equity for indigenous people and all people who suffer from the effects of prejudice and discrimination.

And the observance of Columbus Day is a commemoration of assimilation, loss of ancestral lands, eraser, and genocide against indigenous peoples. To this end, city officials and residents throughout Flagstaff and the surrounding areas participated in 2016 and 2017 in a series of indigenous community forums to hear the concerns and ideas of indigenous people and adopt the strategy and recommendations that came from these forums.

The city of Flagstaff resolved in 2018 to support efforts to educate the public about historic and contemporary indigenous human rights concerns and to honor its indigenous roots by becoming a better steward of the land it is built upon. The city of Flagstaff has since moved to establish a full-time position for indigenous affairs administration, seat the indigenous commission, and enter into anou for the development of an indigenous community cultural center and programming.

The city of Flagstaff, mayor, and council members hereby recognize and renew the commitment between the city of Flagstaff and the indigenous nations and communities of Northern Arizona to work together for the benefit of all. Now, therefore, I, Council Member Cara House, on behalf of Mayor Becky Daget, mayor of the city of Flagstaff, Arizona, do hereby proclaim October 12th, 20 26 as Indigenous People's Day. Sorry. Okay.

Those are my four clans, my mom, my dad, and both my grandparents from my maternal and paternal side. Um, I just want to say thank you u mayor and council for this opportunity to recognize the this day and also the event that's coming up. And I also want to thank all our staff members here that always supporting me and the things that are um any events that are going on within the city of Flagstaff. Thank you for being relatives and thank you for being so supportive.

And then also community members that are here. I do greatly appreciate you as my relatives too in this community. Um we're all here together. We all do things together. this is our home and we just need to really support each other in whatever way that we can. So, thank you so much for everything that you do. I just also want to share on Monday um we have an official um city of Flagstaff holiday, but please come to the event that we're holding at the Elks Lodge.

Um we're starting at nine o'clock and we are our theme this year is called honoring our ancestral roots through food. We'll be starting um our MC is going to be Chris David from um Native Americans for community action. Um Mayor Daget and Council Member Matthews will also be there to be part of our agenda. Um we're also going to have some acknowledgement of dignitary relatives that are going to be attending.

And then our keynote speaker is um Filian who is uh um a food for life um instructor with the physician's com committee for responsible medicine and she also has her own consulting business. We'll also have a 10-minute video from chefs um Lois Allen Frank and um Walter Water Whitewater.

And then we're also going to have a panel create let's create a healthier community with a panel of also filia um including Lyles at city who has a personal journey um when he changed his diet and then also Shawn Ray Beay a local um community member who is a farmer and is involved in food sovereignty and then Dr. Brian Dr. to Lori Bryan who's also a medical doctor who has served Native American communities for over 40 years.

We'll have a lunchon of what we call the three sister stew by um artisans kitchen. We're also going to know have a highlight on NA notables. We're going to have a speaker from NAU who's a PhD student um Hosa Cretzman who is also going to share his story on how he um in line with our theme is a 2028 US Olympic marathon. He's qualified for the marathon trials.

And then we also have a young student who's also at NAU who has performed in the flag color guard um performance with the NA band and has been part of the 2025 Macy's Thanksgiving parade. So please come join us and we'll have a great time together as relatives. And then I also have just a few mouse pads if anybody is wanting to share. Also some extra flyers for you to take if you want. Um some mouse pads from our honoring all indigenous co-alkers day from last August this past August. Thank you.

Appreciate it. Appreci appreciate all of you. I got a neighbor. That's why I got down. All right, we're down to agenda item 6A, consideration and approval of minutes. Council, do you have any questions or comments about these minutes? If not, I will take a motion. Mayor, I move to approve the minutes of the city council regular meeting of August 25th, 2026 and the city council work session of September 8th, 2026. I'll second. Any discussion? All those in favor? I. Any opposed? All right.

And we are not addressing item seven um because a a larger discussion is going to come forward about commissions. Next up we have council liaison reports. Uh council member Spence. Um nothing this evening. Council member house. Nothing tonight. Thank you mayor. Vice Mayor. Nothing tonight. Council member Alen. I do have a couple things. Um, last week the tourism commission was rescheduled due to a lack of a quorum. And that meeting is going to happen tomorrow at 2:30 p.m.

Uh, the float trip on Clear Creek for the Cookanino Plateau Water Advisory Partnership was very successful. Nobody drowned. Um, and then uh so for the sustainability commission, a couple things just to update everybody on. Uh last time they met, they went over propositions 404 and 405 and put together a carbon neutrality goals working group. Um they discussed the Flagstaff food action plan and uh another big thing was the sustainability grants next steps.

Um I'll go ahead and make some announcements for that. So the November commission meeting will be dedicated to selecting Flagstaff sustainability grant recipients.

uh Jennet Ortega and Chair Wowinsky shared some great news uh great resources on how FSG provides works and how to recognize biases and grant review and um yeah so the the sustainability grant resources um on the meeting agenda there's all sorts of guidelines uh grant guidelines scoring rubric the application itself and uh just um this safe streets master plan survey. Um, Commissioner Carlson encouraged everyone to take the survey on how transportation can be improved in Flagstaff.

If there's anyone left from the bike week stuff, um, please keep that in mind. Uh, that link is also available on the Sustainability Commission agenda. Thanks. Thank you, Council Member Matthews. I'm going to save mine till next time. Thank you, Mayor. And nothing from me. So, we will move down to the consent agenda.

All matters under consent agenda are considered by the city council to be routine unless a member of the city council or a member of the public expresses a desire at the meeting to remove an item from the consent agenda for discussion. It will be enacted by one motion approving the recommendations listed on the agenda and unless otherwise indicated expenditures approved by council are budgeted items. So, we have consent agenda 9 A B C D E and were there any that a council member wanted pulled?

Council member Matthews here. I'd like to pull C. All right, we will pull C. And I'm looking for a motion for A, B, and D and E. Mayor, I will move to approve consent agenda items A, B, D, and E. Second. Any discussion? All those in favor? I I. Any opposed? All right. Council member Matthews. Thank you. Um, I know we've been working on this for a long time. Let me see. I see an airport person here. Hello, Mayor and Council.

Um, Stacy Brooklyn, grants and contracts director, and I'm here to answer any of your questions. Great. Um, just two questions. Um, one, um, I just wanted for public notification. Um, will this grant now finish um, the building buildout?

And then I was just curious um when I was reading the attachment that um this was grant was ratified, which I'm sure we would have all ratified it anyway, but I was just curious why there was timing where it didn't come to council back uh when it was brought to us. Yeah. Um so let me give you a quick um overview and history. Um um so this um grant is approximately $24 million.

Um we have received phase one grant um uh from FAA um for phase one site work and then that is also uh an AOT match that we've also received that grant. Um we've received phase 2 grant and that is again um for um some um additional work on phase two for structures and so we've got that plus the AOT matching grant. This next one is not the final. This is um entitlement funds only for phase three. We are still working to get our discretionary funds of um about $5 million.

So that will go in next year. Um FAA is going to submit with us a um uh discretionary only grant and that will be the final one. Um uh FAA once they release the entitlement, they give us a very very short window to accept the funds. And so that was our our um need to go ahead and have it ratified. Uh city manager Joanne Keane approved to ratify it just for the essence of time to get make sure that we got that grant in hand. So hopefully that answered your questions. It did. Thank you.

You're welcome. All right. Now I'm looking for a motion on item C. Mayor, I move that we approve item C, the ratifi ratify the grant agreement with the Federal Aviation Administration for the airport snow removal equipment building phase three for the grant funds in the amount of 3,874,297. Is there a second? I'll second. Any discussion? All those in favor? I. Any opposed? All right. Thank you very much.

Okay, we're down to routine items 10A, consideration and possible action regarding executive session of October 6 2026. And I am looking for a motion. Mayor, I move to direct and authorize the city attorney and or designated city representative to proceed as discussed in the executive session of October 6, 2026, items 5 AI and 5BI. I'll second. Any discussion? All those in favor? I I. Any opposed? All right. B. American Public Works Association Accreditation Review Team Introduction.

Good evening, Mayor and Council. Uh Scott Overton, public works director. Um I'm pleased to return. A few weeks ago, we were visiting with you about our upcoming accreditation uh review. that was going to occur. We are back this evening as we have officially begun that review early this morning. Um we have with us our national accreditation um evaluators from not only our nation but from an international location. So that's kind of exciting. I'll let them introduce themselves.

Bailey China serving as our accreditation director, our manager and then we have a lot of public works leadership here today to support the cause. It's been fun in our building today. We've been busy in each of the conference rooms going through chapter by chapter all of our procedures and all of our documentation. Um, and I believe it's going quite well. We'll find out by the end of the week how well it has really gone.

Um, with that, Bailey, do you have anything to add or we want to go right to our evaluators? You want to go first, Alicia? Wendy, I'm going to go. Sure. Just just quick introduction and right here. You got to come to the microphone though and then you're all set. Hi. Uh, my name is Wendy Springborn. I'm from the National Organization of American Public Works Association as one of our accreditation managers. Hi, I'm Dwayne Kalenchuk on the international part. I'm from Victoria, British Columbia.

I was the public works director there. I've now um have been with this evaluation program for about 30 years and I think this is about my 160th evaluation. So, I just want to compliment you in the beautiful community you have here. Thank you. Yeah, Alyssa Para. I am the accreditation manager for the city of Austin here serving as y'all's evaluator. I'm happy to be here and y'all do have a great city. I'm Doug Bearer.

I am a retired uh 37year public communication manager and senior business analyst for Kitap County and Public Works in Port Orchard, Washington, which is on the fun side of Puet Sound across from Seattle. Um, on behalf of the team, I want to first thank you as a council for your support in um, encouraging Scott. Uh, it's a lot of work, not only for Scott and his staff, but also for a lot of your internal services funds because they have to work with public works to get these processes in.

Extremely impressed with Scott and his staff and his employees and the amount of work, time, and effort that's gone into this. Our results today were all fully compliant. Um, they're very well prepared and I think as a council you should be very proud of your public works department that uh provides services every day to every single one of your citizens in a very professional and very well done way. So, thank you Scott. Well, thank you, Doug. I'm not buying his dinner this evening either.

I I app I appreciate those comments from all of our panelists. It's been a great week and it really is a capstone for us after two years of effort. Um, I'm proud of all our staff. They did the heavy lifting on this one and I might have directed the ship a little bit, but honestly the work and effort and and documentation's been incredible. So, we've learned a lot. Um, we're excited to get through this week. Um, I appreciate the extra few minutes.

Also want to thank our assistant city manager, Shannon Anderson, who's been very supportive of me taking on this endeavor. Um, it's been more than a two years effort. So, um, that is time and work program. One thing to add, there will be one additional presentation and that will be when Scott and APWA brings you the plaques and all the official notification of your certification. It's quite an achievement and I hope you'll recognize it as such. Thank you.

I was hoping to get through this week before we announced that, but all indicators are looking good. So, thanks again. We appreciate it. Yeah, I do not want to jinx anything. Uh we appreciate the time and effort. Uh any questions, we're happy to take them, but we were here just to introduce the team council. So, we will be getting a full uh uh presentation on what the findings were and all. Yeah, we'll follow up as uh the evaluators have kind of signaled and demonstrated.

We're going to have um kind of a final close out. We'll receive our recommend or our at least a recommendation for accreditation. I assume we will receive that from our agency and our professional organization. The real big highlight for us is the professional trade organization of American public works has their national um conference in Phoenix next summer. So, we will likely be timing this very very well for us to not only attend but hopefully receive our formal accreditation.

But, uh, yes, we will keep you posted as soon as we know and we will return with some results and, uh, showcase what has happened in the last couple years. It's been pretty fun. Thank you. And thank you all. Nice to meet you. Thank you all. All right. Speaking of public works, consideration and approval of contract for the innerbasin waterline roadway and critical water infrastructure project. Greetings, council mayor, vice mayor David Peterson, capital improvement project manager. We're back.

I'm gonna talk this afternoon a little bit about some of the needs we have in inner basin. uh post the project. Um currently we have Hunter Contracting up there doing warranty work. So when we have a capital project, the contractor warranties the work for 12 months. So typically we get together at 11 months. We identify anything in the project that's deficient. Uh this project had very few minor items that needed to be addressed.

Uh and if you recall, we also partnered well Hunter contracted with Arizona Game and Fish to install those wildlife drinkers. So they're actually up on site mobilized doing warranty work for our project as well as for the Arizona Game and Fish project.

So that was part of the impetus behind some of these emergency repairs that we had that we would like to add to them already being up there because we save uh substantial amounts for mobilization and demobilization but not having to pay that again to have a contractor go all the way up there to do the work. Waterline Road has seen some uh points of a lot of erosion in places that we didn't work on the project.

So I have slides here later in the presentation to show you an example, but many of you were on the tours going up there. You can remember how narrow the road is. Uh if you lose off a couple more feet of that road and we have very large equipment that needs to get up there. Uh in its current condition, some of that equipment can't make that passage currently. So that's kind of again the impetus of the project that we need to go up there and improve.

We also found another location up in Inner Basin above uh where the waterline road is where we have a pipe that's exposed, not broken. uh but just exposed and threatened in its current condition. So, we wanted to be able to get in there and armor that in a way that keeps it in its condition uh and keeps it intact. I love mountain meteorology, so I'm would not be aiss if I got to include some weather in my presentation. Um I wanted to just kind of recap the monsoon season that we had this year.

So, one thing that we've done since completing our project is we've had two monsoon season and uh one winter season. The one winter and last year's monsoon were kind of lackluster. Uh this year's monsoon season is actually pretty good. Uh up on the peaks, it was above average. Here in town, it was a little bit above average. Uh the map here on the left shows preip in inches for the state, most of the state of Arizona. I did a little inset map here to show the peaks.

Uh we're looking at 19 to 20 inches just from mid June through September. So that's a lot of rain. The water year actually just ended. Happy water new year. Uh it goes October 1st through September 30th. Uh that we have a weather station a little over 9 9700 feet in inner basin. That one recorded a little over 40 inches for the entire water year. So almost half of that came in the last three months. So impressive. And then on the left or excuse me on the right here we have the percent of normal.

You can see here on the peaks we're looking at about 175 uh just under 200% of normal. So even though town was about 113% the peaks had a little bit more. Final acceptance for the project was in mid June uh of the of last year. We did do a warranty walk with Hunter in May uh to identify some of the spots that we needed to do warranty work on, but due to scheduling conflicts on their side, they weren't able to mobilize until September. Uh so they are currently up there doing that warranty work.

Again, this contract would piggy back on that since they're already mobilized to be able to complete the work. Uh again, 113% of average. The airport is another point where we collect data, 127 years of data. Uh pretty good. And I will mention that two inches of that happened in the last week and a half. So we were a little below normal and then had a really strong finish. So happy to report that we're above normal. On to the roadway work.

So site 18B, uh, if you turn 180 degrees from this picture, you would see the tunnel that we drove through on our tour. Uh, so it's just uphill of that. At this site, our roadway used to go to about where this red line is here. In fact, if you stand on this road and look downhill, you can see much of that AB that was on the roadway there uh, has taken its journey down into the drainage. Uh, here on this hillside, we have bedrock. We have some deposition of soils coming down.

We can't cut into that hillside. Uh so we simply just need to expand the road in that section or put back what was there. Uh we do that by installing those gabian walls, those uh chicken wire looking rock hand rock packed blocks. Um and then we bring in more fill to establish a wider prism road. Uh another issue we have is we have two spots. This spot and then just around the corner to the right. Uh that is our 16inch ductal iron pipe that's currently carrying the water from inner basin.

That kind of ring feature right in the foreground is actually the bell. So that's how they fit together. Uh if you can imagine if you're coming down with a grater or a backhoe. Uh if that blade catches that bell, that can create a lot of problems and leaks in our system. Uh so we're planning to come in here with some gabians on the outside edge and then bring in more fill material to bring that roadway prism up so that we have cover on those pipes.

So again, it's this section and then just downhill around the corner. And then as I mentioned before the exposed pipe up in inner basin uh this is looking downstream. Uh this picture on the right is taken about there. Uh and then down here that rock is about here looking upstream. Uh we are fortunate and very blessed that this rock didn't damage our pipe when it came down. It's a hard to see by scale but it's about the size of this dascese.

A little smaller than the rock that Stacy BK was trying to push off water line earlier. Um, but it's uh in it's in a floodway and it's very compromised in this situation here. We're very fortunate and blessed that it didn't break any of those water lines coming down from Flag Spring. Uh, so we have about 100 linear feet of encasement reinforced concrete. So we have rebar and then we form it up against concrete uh for this section and then we have to about 40 to 50 feet in this section here.

And then we actually install a junction box in between so we can see how much water is coming from each direction. And then we have an outlet that's set about eight inches higher. So if something gets blocked or there's a really high capacity flow, it can outlet without damaging infrastructure. Uh scope of work. We talked about the pipe concrete enc casements. We talked about the gabian baskets. Uh with the saturated soils up there, we have a lot of trees that are falling across the road.

We needed some capacity or some mechanism to be able to fund removing those off the roadway. uh kind of with the next one as well, when we have storms or if we have storms now that we're out of monsoon, we still have preip. Uh if that deposition happens on the road, we need to be able to clear that off.

So, the nice thing about allowances is if we don't need it, we don't expend it, but if we do need it, it's there to be able to fund those those purposes and making sure our crews can get up there to work. Uh if you recall when we were up there at site A, the highest point on uh the waterline project, there was the cabins and this sign was leaning up against the one of the weirhouses up there.

Uh part of the scope of this work will be to install this sign way down at the bottom of Waterline Road right off of Schultz Pass so people can learn about Waterline Road without having to travel nine miles up the road to read the sign. Uh so that was a fortunate uh thing that we can do with this project to introduce people to Waterline Road. uh at the bottom of the road before they have to travel the entire road. Uh and then also pothole repair.

So one of the if you recall we have three three or four old pipes that are on that system. One of them is a concrete pipe that collapses. So we have these potholes that are 12 to 16 in deep that will fill with concrete and then cover with AB. So that creates a problem for our equipment, forest service, for recreationalists when you have dangerous deep potholes in the road. So, we also have the ability to patch. I think we have five of those in the road. Uh, so that's also in the scope of work.

Contractors Hunter, I included this picture that was taken a couple weeks ago. Uh, you guys are fortunate to be up there on sunny days, but if you can imagine a narrow road when your visibility is less than sunny, uh, it's really nice to know with confidence that you are on a safe passage. uh contract is for a little under $960,000 and we're looking at a calendar day uh contract of 60 days. So again, we wanted to be able to get up there, get the work done before the snow pack starts building.

We're going to start at the highest elevations and work downhill. So the highest is about 11,000 ft and then we work all the way down to Schultz Pass. So they have it timed out uh once we have approval to be able to work. And with that, I'm happy to entertain any questions or comments. and I really appreciate your time and getting through my stuffy voice. Thank you, council. Questions, comments? Council member Matthews. Thanks, David. Um, I think this requires another tour.

Sorry, Council Member Matthews. What was that? Said, "I think this requires another tour." I think so. That would be So, um, is it realistic? Realistic. Obviously, you put it in there 60 days. I mean, that's pretty quick for the repairs that you've just highlighted. So, do you think they'll be able to get it done given if the weather uh participates?

Council member Matthews, I think you nailed it right on the head that if the weather cooperates, I think that that is very achievable to accomplish that within 60 days. And what is the risk? Um, I know you're going to start at the highest elevation because of the weather, but we also had some maybe more exposed areas.

So is there a plan to address those in case we can't get a complete fix in by starting excuse me by starting up high we have a junction box to start up by the springcase encampment and then we have that armoring those are the highest two elevation sites which actually are the most critical to the water infrastructure system. So the roadway ones are obviously in critical you know condition as well for the roadway but it doesn't impair water transport at this time.

So, if for some reason they finished the water infrastructure improvements, the roadway can be addressed in the spring, but we're hoping to get it all done. Uh, but the the caveat with this is that if you get the work done early, at least all that spring melt water can be captured in the system. Uh, because we can't get in there with equipment until well, an average year, May, May or June at times, too. Uh, so we wanted to make sure we can capture all that water when it melts in the spring.

And then we're planning on being able to get all the roadway done as well. Thank you. All right. If there are no additional questions or comments, I will um I'm looking for a motion. I move, mayor, I am move that we approve the cooperative contract for waterline road repair and critical water infrastructure with Hunter Contracting Company for 958,643.39 within 60 calendar days and authorize the city manager to execute the necessary documents. I'll second. Any discussion? All those in favor? I I.

Any opposed? All right. Thank you. Thank you so much, council. All right. We are moving down to item D. This is a resolution and an ordinance on the planned community zone. Hello. Good afternoon. Uh being that this is a second read, I do not have a presentation, but I'm here to answer any um concerns or questions that you have. Thank you. I do have a question. Um an item that was brought to my attention was about golf courses in this zone.

and can you walk us through what the um approval process would be for a golf course? Sure. Thank you so much, Mayor Council. Um any use, any land use within a planned community zone would not necessarily need to have a conditional use permit because it would go through a reszoning process.

So all land uses to be allowed or permitted within the planned community zone would be subject to a reasonzoning hearing requiring public meetings or public hearings before the planning and zoning commission as well as city council. The findings for resoning are also more stringent. They require conformance with the regional plan where a conditional use permit is um slightly less. It's less discretionary. Uh it is more about just resolving immediate impacts.

Um and there is no conformance with the regional plan with a conditional use permit. Thank you. And you just said less discretionary. Did you mean a conditional use permit is less discretionary than a reasonzoning? So resoning grants the highest level of discretion for the planning and zoning commission and council when reviewing a land use proposal. Thank you. Any additional questions? Council member um Alen. Yeah, thank you. I actually have an amendment I'd like to make to this.

I'm wondering if this is the most appropriate time to do so or if I should raise affair at the end of the meeting. Well, that depends on what the amendment is about. Is it a simple amendment to this or is it a completely separate topic, council member? No, it's it's pretty simple. And I've I've been asked to do this um by a a a joint group um that's looking for a way to compromise on getting everybody across the finish line on plan community zone.

So the amendment would be to insert resource protection standards immediately after site planning design standards in the list of standards that a plan community master plan shall not modify. Um, I firmly agree that this is a the the right tack to take and it just further solidifies um support for this new community zone. Tiffany, you're probably going to want to dive into that a little bit.

Um, I don't know if you need time to do that or if it's appropriate to vote on something like that here or at another read. Thank you. Um, Council Member Alen, I have no issue with the recommendation. Happy to make the change. Um, however, that needs to happen at this point in time. You know, we are in the process right now of working on an amendment to the resource protection standards. Um, so yeah, that's fine. Can I can we pull it up and then actually see where the language would go?

I think that would be helpful. Is that possible? Let me see if it's still in here. Would be exhibit A section 10-40.30.070. It's gone. Yes, I would love that. Thank you. Yeah. Okay. Can I just Mayor, if I may, mayor, council member Alen, and council lady, if you wanted to discuss that now, you could obviously it would require a motion for a second read with the amended language once that time comes.

I'm interested in the in the good faith effort to speed things along um which is a commitment we've made to developers um to to take care of this as quickly as we can. So I guess that means this afternoon I'd be happy to make a motion to amend. Could we have something written that we could look at um for the amendment? Sure.

So in this first sentence that she has highlight well in number two where it says building form and property development standards, the PCMP shall not modify the site planning design standards. It's referring to sections of the zoning code. So the sign planning or the site planning standards, our outdoor lighting, our signage standards, and then our incentives just included in that will be the resource protection standards. We have a we we currently have a separate process to handle that.

We have the resource pilot program man going on. So we already have the ability to work with developers on a one-on-one basis. So, mayor and councel Stacy did type the language in as it would read up there. I want to make sure that's correct. Tiffany, is that right? Thank you. Yeah. So, I'll just uh make a motion to um do the second read with with an amendment um and then we can vote on it. Is there a second? I'll second. Was that your motion?

Depends on how Yeah, we would need the formal motion. I thought he was Yeah, I thought my my apologies, Mayor and Council. I thought he was just talking about when the time came, he would make a motion right now. I think he just wanted to throw that out for discussion. Got it. And I can go ahead and do that. I don't see any questions or Okay, please. Okay, going back to the agenda. Which item is this? Sorry, I still had the sustainability commission agenda up.

Would you like me to make the motion for you, Council Member Assen? Um, sure. Be my pleasure. Mayor, I'll move to adopt resolution number 2026-46 as amended. I second. Any discussion? All those in favor? I I appreciate it everyone. All right. And um then a motion to read ordinance 2026-20 as amended. No, that one wouldn't re require the as amended. The amendment was only made to the uh 202646. Right. So moved. I'll second. Discussion. All those in favor? I I. City clerk.

An ordinance of the city council of the city of Flagstaff amending the Flagstaff city code title 10 Flagstaff zoning code by adopting by reference that certain document entitled PZ-25-00002000-planned community PC zone providing for repeal of conflicting ordinances severability authority for clerical corrections and establishing an effective date and a motion to adopt the ordinance. So move. I'll second. Any discussion? All those in favor? I I. Any opposed? All right. Thank you, Tiffany.

Thank you so much. Oh, wait, wait. We had public comment on this. I'm so sorry. Um, so procedurally after we've already passed it, um, and this is completely my fault. You can still take the public comment. All right. Apologies, Michelle, but Michelle James, you guys were very fast on that. Uh, I'm Michelle James. I'm executive director of Friends of Flagstaff's Future. Um, we were we we were one of the groups concerned with the language that you guys just amended. So, I'm happy to see that.

I'm not going to read what I wrote for that. Um, we do continue to be concerned that the adoption of the plan community zone eases the development process for those who want to build without pri providing the evidence of nor requirements for development that address one of Flagstaff's most important needs, attainable housing. We also continue to be concerned that the proposed um PC zoning district would allow proposals for one or more land uses that don't currently exist in the Flagstaff code.

These would be new land uses. Could staff explain the reasoning for this inclusion and advantages and disadvantages in relation to the public notification and input kind of like she like Tiffany did earlier this this evening. Uh finally, we applaud the inclusion of the required common space within this proposed new district. However, we don't believe golf courses should qualify as part of the common space requirements. That's the percentage of 20%. That's it. Thank you very much. Thank you.

And Tiffany, could you address those questions? Sure. Um, so when we are unprepared and we don't have a process when land uses come into play, our only option is to go through a zoning code amendment process which sometimes leads to a lot of pressure to amend the code in a very quick time frame. Um, without maybe doing all of the research and inventory on a particular land use.

Um, one of the examples recently that we had to add was for a seasonal amusement facility to be able to accommodate the winter Christmas event that happened out at Fort Tutill. It needed to was looking to relocate into the city and we we just didn't have a quick way to adhere or or get that land use into the system. And so this would give somebody a dedicated avenue.

they could always apply to reszone into the PC zone, which could be a much quicker option than the time it takes us for us to amend the zoning code, but both options would remain on the table. Thank you. And do you want to address the the rationale for um space including golf courses?

So the common space area, I mean golf course is an amenity and would go towards open space areas and as I've delved into the world with um our fire department and planning areas um golf courses are known to be one of the best fire breaks uh that you can actually accommodate. And I I know we all have different feelings about golf courses, but um they are open space areas. they are an amenity space within a community.

So, we would treat them as part of that area um requirement for recreational amenity space. And then that goes back to my original question, right, with um with uh a golf course requiring a zoning Yes. amendment.

It would be a reszoning amendment which then requires um conformance with the regional plan instead of conditional use permit is essentially a permitted use where and upon which we apply conditions of approval and the findings for a conditional use permit are much different than they are for resoning. Reszoning you need to identify community benefit. That is not the case with a conditional use permit.

You just have to show under a conditional use permit that you can conform to the provisions that are generally within code. Thank you. And again, my apologies. All right. So now we are moving down to E. Consideration and adoption of resolution number 2026-47 and ordinance number 2026-24ers. Thank you. like it was at the top. All right. Good afternoon, Mayor and Council. My name is Genevie Perth three with the Flagstaff Sustainability Office.

Uh we have a very short presentation today because this is the second read and it mostly involves the energy code which is why I'm up here today. Um but we have the entire team here so if you have any questions we'll be available. Okay, so we only have one slide of content today. Um, it just covers um edits to the amendments document since the ordinance first read two three weeks ago.

So there were several small tweaks to just make sure that the code sections that were cross-listed in the international residential code as well as the international energy code were consistent um with numbers, titles, capitalization, etc. And then a few small formatting issues and language inconsistencies. So we fixed that across the code. Uh then there's one other change uh which is removing amendments related to efficiency for gas furnaces and cold climate heat pumps.

This was for residential construction only to align with federal standards. Um but on that topic, we'll continue to research um efficiency options for HVAC HVAC systems and code um and revisit this topic and future discussions on energy code options three and four that we'll be having sometime in the nearish future. Um, and we'll also continue to provide educational resources and programming to support high efficiency HVAC systems in new construction as well as in retrofits.

Um, so that's all that I have as an update on the presentation. Um, I'm available, so is the rest of the team. Thank you. Council comments, questions. Okay. Um, excuse me one moment. Thank you. Yes. Sorry if I can turn my microphone on. I apologize. I think there was a motion and a second and that's when you realized on the last item, pardon me, that uh we hadn't received public comment yet. I don't believe the council voted on that to adopt. I think you got the motion in the second to adopt.

Okay. So, I uh completely messed up the entire last um item D. So, we had a we had a motion from We just need a new motion. We need a new motion. Just a motion to adopt. Correct. For ordinance 2026-20. All right. Can I get that? I move that we adopt uh ordinance number 2026-20. I'll second. Any discussion? All those in favor? I Okay. All right. Yeah. Thank you. All right. Now, we're still on F and we have some public comment. First up, we have um Charity Lee. Mayor, we're on item E.

I think you said F. We're on E. Correct. I was out in the sun a little bit today. Um, I don't I don't know if that's uh what's going on, but on E. And we have Charity Lee speaking on E. Yes. Hello. Good afternoon, good evening, uh, mayor, council members. My name is Charity Lee. I'm with Capstone Homes. Uh, earlier today, I sent an email asking you to consider the overall cost implications of adopting the 2024 suite of codes.

Capstone has received estimates based on the proposed code changes and we are seeing an increase in construction costs of more than $27,000 for a 19,000 1900 excuse me square foot home. Staff has suggested that some of these increased construction costs could potentially be offset through the last cap initiatives. Given this, we urge the council to consider postponing approval of the proposed proposed code changes until the last cap initiatives have been fully vetted and implemented.

Doing so would allow the city to conduct a comprehensive analysis of both the additional costs associated with the code changes and any additional savings resulting from last cap. This would provide the council and the community with a clearer understanding of the overall financial impact before the new requirements are adopted. Thank you for your consideration. Thank you. Uh yes, Council Member Spence. Yeah, if I could ask a question of Charity Lee. Thank you for uh taking my question.

Um, if we were to uh take your suggestion, uh, would Capstone be willing to provide us the specific details that you've discovered? Um, Council Member Spence, I did provide uh an email with an exhibit showing the costs of that $27,000 increase. So, it it has been provided to you. If you do have additional questions, we're happy to meet with you one on- one um to go over those. Thank you. I'll have to catch up on my emails. Thank you for providing that. You're welcome.

And I also did provide the printed documentation here today um and gave it to the clerk, so she should be providing that to you. Thank you. All right. Next up, we have Michelle James. Thank you, Mayor and Council. I'm Michelle James, executive director of Friends of Flagstaff's Future. FCUB urges city council to support the adoption of the 2024 base energy code readiness appendices and radon mitigation as part of the suite of building and fire codes.

City adoption of the updated energy code is imperative in continuing to address our climate goals. The updated energy code is expected to reduce greenhouse gas emissions from new buildings by 12 to 20% while assisting with reduced energy cost in new residential and commercial buildings. Staff estimates indicate that energy efficiency features will only account for 1 to 2% of a new home sale price.

Adoption of the base energy codes will help owner homeowners save energy, reduce utility bills, improve indoor comfort, and provide greater safety to residents during extreme weather. Whe be be that summer heat or wildfire smoke. We understand that community discussions regarding adopting the next level of 2024 energy efficiency code will take place as part of the code updates related to the last last cap in 2027. My understanding is that starts in like January.

In this juxaposition will allow council and flag staff to fully understand how both the implementation of the base code and additional implementation of the net zero residential energy efficiency can be achieved alongside attainable housing. FC urges the city council to support the resolution and ordinance tonight and adopt the 2024 base code plus readiness appendices plus radon mitigation.

I would suggest you ask staff how long a delay would take if um if you go with what the public comment just was. Uh how long would that take? I I I'm thinking the last cap code things are going to take a long time to implement. So thanks. Thank you. I think our speaker our next speaker just walked out. Um, so next up we have Gary Nelson and he has several U members of the realtors with him and each will be speaking individually. Um, just me. We have 10. Great. Thank you. All right.

You have the time that you need to I'm sorry. May I'm sorry, mayor. Do we do we have the 10 in the chambers? They have to stand to identify themselves. Are they here? Okay. And one online. Okay. Yes, we do. And we have several online and we Okay, great. Sorry, just staying consistent with previous practice. Thanks. Yes. Thank you. And mayor, did you say 10 or 15 minutes? I said um the amount of time that he needs. So, it's up to 15 minutes. Okay. Thanks. Hopefully, it'll be 11. So, we'll see.

Mayor, city council members, and city staff, thank you for giving us the opportunity to speak with you today. My name is Gary Nelson. I'm a lifelong resident of Flagstaff, and I'm speaking on behalf of the Northern Arizona Association of Realtors. The Northern Arizona Association of Realtors believes one of the most important issues facing our community is the availability and attainability of housing for home ownership inside the Flagstaff city limits.

For several years, approximately half of the residential transactions conducted through our association have involved properties outside Flagstaff city limits. Some buyers intentionally choose a rural lifestyle or a smaller surrounding community, but our members also routinely work with buyers who begin their search in Flagstaff and ultimately purchase elsewhere because they cannot find a suitable home here at a price they can afford.

that matters because many of our of those residents still work here, send their children to school here, shop here, receive medical care here, and drive into Flagstaff multiple times every day. So, housing policy is not an isolated issue. It affects traffic. It affects vehicle miles traveled. It affects our climate goals. It affects public transportation. It affects work workforce recruitment. And it affects the long-term character of our community.

In December 2020, the city of Flagstaff formally declared a housing emergency. At that time, the city acknowledged that limited housing supply and external demand were contributing to housing costs that had exceeded the buying and renting power of much of our local workforce. The city's resolution also noted that home prices had increased approximately 53% over the previous decade, while area median income had increased only 14%. that was considered an emergency.

Unfortunately, the home ownership side of the emergency has become even more severe. The city's own data reported a median housing sale price of approximately $420,535 in 2020. By July 2025, the city's housing plan reported uh reporting placed Flagstaff's median home price across all property types at approximately $685,000. That is an increase of approximately 63% in roughly 5 years. Think about that for a moment.

When Flex declared a housing emergency in 2020, the city cited a 53% increase in home prices over the previous 10 years, as evidenced of the cris crisis. Since that declaration, prices have increased another 60% or more in roughly half that amount of time. The city's own current housing data make the problem even more clear. Flagstaff median household income is approximately $69,700. The median single family home price is approximately $787,000.

Under the assumptions used in the city's housing analysis, a household would need an annual income of approximately $165,000 to $177,000 to afford the medium price single family home. That is home ownership gap we are asking you to address. Following the housing emergency declaration, the city embarked on a 10-year housing plan. Part of that work ultimately included the land availability and sustainability study and code analysis project commonly referred to as last cap.

The p purpose of that work was to identify land use regulations and development processes that may prevent Flagstaff from meeting its housing goals. The recommendations include increasing byite density, reducing parking requirements, modifying resource protection standards, creating more efficient street standards, encouraging smaller housing units, and allowing additional residential density in appropriate commercial areas.

We also understand that two important last cap related updates are expected to come before council before the end of this year. A planned community zone and changes to the zoning map amendment process. We appreciate seeing these items move forward and encourage council to treat them as part of the larger effort to accelerate meaning housing reform.

We appreciate the work being done by Joanne Keane and her administration and we recognize the enormous amount of work being undertaken by Michelle McNelte, Tiffany Antl, and the city's planning and housing teams. We are not suggesting that city staff or this council have ignored the housing emergency.

The National Association of Homebuilders released a study in June 2026 estimating that federal, state, and local government regulation adds approximately $131,734 to the to the price of an average new single family home. That represents approximately 26.4% of the final sales price. That figure is a national average. Flex Staff's own last cap analysis has identified local zoning standards and development procedures that create barri barriers to housing production and increase development costs.

That is precisely why reducing unnecessary regulatory barriers here deserves urgent attention. Our association has advocated for improvements to these processes for many years. Over the past three years in particularly particular we have repeatedly met with city staff, the mayor and members of the city council asking for a greater sense of urgency. We appreciate that there has been support for many of these ideas.

But if significant last cap policy recommendations take another 12 to 18 months just to reach council followed by additional time before those policies results in actual homes. then we are still years away from meaningful rel relief. And that is the fundamental question. Can a community that formerly declared a housing emergency nearly six years ago afford to spend several more years implementing reforms that we already know are needed? We do not believe it can. So what can this council do?

We respectfully ask you to consider four actions. First, codify the new resource protection pilot program as soon as possible. We believe this is an area where the city already has enough information to act. A workable resource protection framework can increase buildable area, improve certainty for builders and developers, and reduce costs that are ultimately passed on to home buyers. Second, ask city staff what resources they need to accelerate last cap implementation.

If the current timeline is 12 to 18 months, ask what would would be required to shorten it. Additional staffing, outside consulting assistance, prioritizing certain code amendments ahead of others. If there are recommendations with broad agreement and a clear connection to housing attainability, we encourage you to move them forward as quickly as reasonably possible.

That includes continuing to advance the planned community zone and zoning map amendment process expected to come before council before the end of the year. Third, evaluate whether the current traffic impact analysis process can be replaced or modified through an appropriate impact fee structure.

If a predictable impact fee system can accomplish the city's transportation objectives while reducing delays, uncertainty and professional consulting costs, the alternative deserves serious consideration. Time costs money in development and ultimately those costs are reflected in the price paid by the home buyer. Fourth, carefully evaluate housing cost implications of the upcoming suite of codes.

As those codes come before you, we ask that housing affordability and attainability be treated as a significant part of the decision-making process. Before new requirements are adopted, understand that what they may add to the cost of producing a home. This is especially important because of the timing. If the city adopts the suite of codes before adopting the last cap recommendations intended to reduce barriers and lower the cost of producing housing, there is a very real imbalance.

By adopting the suite of codes first, all we know that is with certainty is that you, the city council, will have raised the price of every new home in Flagstaff by thousands of dollars with no guaranteed offset from the last cap reforms that are still waiting to be adopted. that should concern everyone who believes attainable home ownership is an important part of Flagstaff's future.

We therefore encourage you to carefully consider not only the individual merits of these new codes, but also their timing relative to the housing reforms identified through LASCAP. collaborative, excuse me, collaborate extensively with local developers homebuilders civil engineers realtors lenders housing nonprofits, and others directly involved in creating and financing housing. Our association's goal is not unlimited growth.

It is not growth without thoughtful planning, and it is not the elimination of standards designed to protect what makes Flagstaff special. Our goal is to cease meaningful improvement in the availability, accessibility, and attainability of home ownership within our city. We believe these goals can coexist, but doing so will require urgency. In every real estate purchase contract, our members write there is a phrase that carries there is a phrase that can carries enormous importance.

Time is of the essence. Nearly six years ago, the city of Flagstaff declared a housing emergency. Since then, the median price of housing has increased dramatically and the gap between local incomes and the cost of home home ownership has continued to grow. City's own analys. The city's own analysis has now identified meaningful reforms that can help. We respectfully ask that attainable home ownership be elevated as a priority and that those reforms move forward with urgency.

And we ask you to consider what Flagstaff will look like if we do not change this trajectory. Do we want a community that is increasingly affordable only to the affluent second home buyers from the valley? Do we want a community that may see its elementary schools consolidated and closed because of continued declines in enrollment as working families find it increasingly difficult to live here?

Do we want a community where teachers, first responders, healthcare workers, hospitality employees, construction workers, and other members of our basic workforce must live 30 to 60 minutes outside the city limits because they cannot afford to purchase a home in a community they serve? Do we want to invest significantly in a public transportation system while maintaining housing patterns and densities that make that system less effective and more difficult to sustain?

And do we want to invest heavily in carbon neutrality while more and more of our regional workforce must drive into Flagstaff, often multiple times a day, because they cannot afford housing within the city limits. Every additional commute created by that housing imbalance means additional vehicle miles traveled and for many residents, additional fossil fuel consumption. Those outcomes are directly connected to housing policy. Housing attainability affects more than the price of a home.

It affects the who gets to live here. It affects whether families remain here. It affects our schools, our trans our transportation system, our workforce, our businesses, our climate objectives, and ultimately the kind of community Flagstaff becomes. So, as future land use decisions come before you, we ask that you consider one simple question. Will this make it easier or harder for the people who live and work in Flagstaff to some day own a home here?

We ask nothing less than the same standard we apply every day in our profession. Time is of the essence and the time to address the housing emergency is now. Thank you for your time and for your service to the community. We thank you. Thank you. Christy Bolani. Thank you. Thank you, Mayor Daget. Mayor Daget and council for the opportunity to speak. Great to be here. My name is Christy Bolognani. I'm a 16-year Flagstaff resident. I have worked in commercial construction in town.

I've also worked in residential real estate. Um, I'm currently the buildings program manager for Southwest Energy Efficiency Project or SWEP. Um, we do building science and we help jurisdictions adopt the energy code and tailor it to local needs because every community is different. So, I'm here today to urge you to adopt the new building energy code, the 2024 IEC, um, for the city of Flagstaff.

We all know and agree that housing affordability is a major issue, not just in this city, but nationally. We hear it in the comments. It's something we all know. Um, we feel it. It's extremely important. Unfortunately, energy codes are being mistakenly blamed for rising costs, even though in reality, numerous analyses um by the Department of Energy's National Labs, HUD, and others put the cost of energy codes at somewhere between 1 and 5% of the total cost of a new home.

That impact is much much smaller than many other drivers of housing costs, something we've heard a lot today. things like zoning, uh things like land costs, labor costs, materials financing supply demand. Many variables go into the price of a house. Since we know that building codes are not the dominant driver of increasing housing costs, we should stop blaming them and instead we should look for solutions at our fingertips that will actually move the needle on this problem.

Um and make housing more affordable. things like zoning code reform, refusing to modernize our energy codes, which will be out of step with the rest of the state. We're one of the last major jurisdictions in the state to adopt these codes. Um, pretty much everyone else is on the 2024 suite of codes. Um, isn't going to meaningfully move the needle on housing costs. What it will do is make those houses more expensive to live in after they are built in the form of higher energy bills.

So, something to consider. I know that no one in here wants that. So, let's pass these codes and then let's work together to actually bring down housing costs in a meaningful way with the other levers that we have that are going to do more to actually bring those costs down. Um because ultimately we are all on the same team. And we want houses that are affordable, that are efficient, and that are also affordable to live in. And and that means stronger energy codes.

So, I urge the council to adopt the 2024 IEC. Um, and thank you again for the opportunity to speak and for your work. Thank you, Tyler Denim. Hey, good afternoon. My name is Tyler Denham. I'm here with Flagstaff for affordable housing. And first, I want to express my condolences. You have a very difficult decision in front of you. These are very thorny, tricky issues and can definitely understand why folks end up on different sides of this.

Uh Flagstaff for affordable housing does support option two as a consensus point. Um we understand that it makes a lot of people unhappy on both sides, but compromise often does. We do feel that the city council needs to take seriously the concerns about housing affordability. I really appreciated the speaker earlier who was uh asking what do we need in order to accelerate those LAC cap reforms because uh there there is a solid point to be made there.

We are imposing costs today with the promise of cutting them in the future uh but the future can often feel uh uncertain. Um yeah so we do support option two and uh I want to explain a little bit more why we are comfortable with option two if it helps. Uh so looking at option two the cost breakdown it seems that a large portion of the costs associated with it aren't things that are actually on the table for debate.

They're associated with the increase from the 2018 base code to the 2024 base code. They're associated with the radon measures and the wildfire measures. And I don't think there's actually been any public debate about those. Like everyone feels pretty certain that we want those to be we want those to happen. Um I'll also add another point.

So, at the meeting last uh at the last time this was discussed, uh, Council Member Lori Matthews uh added an amendment to extend the IRC to middle housing uh duplexes, triplexes, and forplexes. We really appreciated that as a cost savings measure and we want to make sure that uh whatever compromise you move forward with today includes that. There was also a small discussion about app uh appendix M with the unified plumbing code.

Uh we think that could also realize some significant savings particularly for multif family. Um when LACap comes back up in a few months uh it would be nice if that was revisited. And finally, this is uh a little bit off topic, but uh I was online for public comment on the last item, and I just wanted to uh express thanks to Council Member Austin uh for advancing that amendment. We feel like that was important to get that uh PC zone through um in a way that the community is comfortable with.

So, thank you. Thank you, Council Member Matthews. Thank you, Michelle. Come on down. So, I have a feeling you'll be able to answer most of these questions that I have. Um, first I'm going to start out though. Um, a couple of people uh that have spoke tonight comment that um the energy codes will um impact the cost of housing by 1 to 5% and 5% of $500,000 is $25,000. So, it's kind of a it's a big deal.

Um, so my questions though to you are my first one is uh I know we have some uh cap uh changes proposals coming uh this month or two. Is that correct? Yes. Uh oh, sorry. Mayor Council Michelle McNelte, planning and development services director. Yes. So, um, the two that are coming kind of this month are the one that you read tonight, plan community. The second is, um, the zoning code text amendment process and then, um, if I can, I really appreciate Mr.

Nelson and the realtor group and their comments about the kind of the four actions we can take. Um the rest of the last kind of last cap big ticket items which are really the um parking reform and likely uh increasing density in all the residential districts as far as some other big changes that really do a lot with changing the dial.

We really have an aggressive schedule of trying to get that back to you all um in about nine months and that's going to be the entire conversation of what that looks like with an energy and housing sustainability me sorry sustainability and housing uh incentive menu as well as um the options three and four that you all have asked about and kind of that big picture conversation. So, um, nine months from now or nine months from when we got the report. Um, nine months from now.

That's we've built some time in to be realistic, but we're pushing to have it sooner to you, but when you take into account all of the public meetings that we need to have, public outreach. um we feel like nine months is appropriate, but in the meantime, we'll likely be peeling off some of those topics and bringing them either for work sessions with planning and zoning and council, maybe a combination, but it won't be stagnant for nine months. There'll be a lot happening.

So, um another question to you and then I just have a comment. Um the I know for the last year we've talked about oh we normally would have uh brought the updated building codes um every six years and so that was really due last year. Correct. And but we were waiting for other codes to get caught up um and presented alto together. But is there a law or um are we up against a timeline that we have to pass something? We actually are.

Um, and Amy will have to remind me what the exact date is, but I think January 6th. Okay, January 6th of 2027. Um, and that's also very important. We can ask for extensions. We've already received several in order to get all of the code, the suite of code together for you. Um, and the important thing about that is we get audited and that can drive up our um, insurance costs for our homeowners if we don't adopt every six month year. So, is it law? No.

But does it help from an insurance standpoint? Yes. Okay. Um, I think you can sit down and I just want to, you know, acknowledge the u decline in enrollment in our schools. I've said up here in the deis um many times about um you know our two declared emergencies but us uh forcing our residents to or not our residents our workforce to uh drive from out of town because it's too expensive to live in Flagstaff um is counterproductive to our carbon neutrality goal.

Um, I also have a lot of just heartburn. I don't get heartburn, but if I did, I'd have a lot of heartburn over once again accelerating um, and I know we have a deadline. Thank you for clarifying that. But, uh, to uh, Mr. Nelson's point, we have declared a housing emergency for several years and yet we were super fast in getting this PC zone thing to us. Um, and we've worked really hard of of interwoing the um, energy codes and the fire codes.

I don't love the fire codes, but I know we have an insurance affordability or just accessibility issue. Um, and and that is driving up some cost. Um, and I don't know that I fully subscribe to all of the things that we need to do, but I I do understand that it would help our um our homeowners insurance. So, I I guess I just want to say that um on my four years on council, it hasn't changed that um we do have two emergencies and one takes um precedent over the other.

Um, I've pushed really hard on some policy changes that will help. Um, but I too don't feel the urgency. Um, and I know it's not easy. Um, I know to say let's just go change this and we don't just go in and and change some typing on a form and get it changed. But, um, and and I've been out in and talking to stakeholders since this conversation came up.

And it's a different conversation than what was presented when we first a couple weeks ago had the building code and energy code and fire codes uh presented to us. It wasn't I you know there was some comments in there about um you know concerns about this and that. But it it just was a different emphasis when you're out actually hearing um what our community members say.

So, um I'm really um frustrated I guess if we have to adopt the energy codes or or adopt some not the energy codes, the building codes by the first of the year. Uh that makes a little bit more uh difficult. But um we we've been pushing back to say what are the offsets.

I've been very clear about saying I will support energy code changes and stuff if we can offset it and it doesn't cost our homeowners anymore because $25,000 on a $500,000 house, if you can even find a house at that price, um is a big deal. And that's the difference between home ownership and being a renter. So, um I just I I just wanted to express that that I I'm not happy with where we are.

Um, I understand deadlines, but here we are pushing something that um is always um seems to get through and um our housing seems to be slipping through our fingers uh more and more every year and I'm frustrated. So, I just wanted to share that. Council member House. Thank you, Mayor. Thank you uh to the team and to the uh public commenters who spoke this evening. Um, I want to ask a a question that was posed to us um with with slightly different language. And Michelle, this might be for you.

Um, or it may be for housing team members. I'm not sure. But um I I think one of the questions that we've heard reiterated um by a couple of speakers tonight is what it would take to responsibly accelerate the implementation of uh last cap recommendations. And I just want to give you a chance to maybe uh answer that question and uh expound on what that timeline looks like and and what it means to do that, you know, responsibly and and thoughtfully.

um to to expedite things without um doing so in a way that could be um essentially harmful or or cause more issues that we're not foreseeing in that that hurry. Thank you, Council Member House. And if I can, I just there was something I did forget to address is that um we are actually working on codifying the resource protection overlay or the pilot program and actually translating that into code. So, and I just want to clarify one thing.

I know it seems like we just came out of the gate with the PC district. Um, we haven't there was a lot of work that was done um during the whole regional plan process. We needed the regional plan to be approved because that is what set the stage to support that zoning district. And so, there was actually a lot of work behind the scenes teeing it up so as soon as the regional plan was adopted that we could we could have that before you. Same with the zoning code process.

So just I want to clarify that. Um as far as resources go, I can only speak for for planning um and development services and you know housing or sustainability wants to to chime in. Um I I think right now I would tell you I think we have the resources. We have everybody that's dialed in who's been part of this process and we have a committed team that's meeting that does consist of planning, sustainability, housing staff.

We're starting to pull in engineering now that we kind of can move past a lot of that code zoning code focus changes to really develop a plan of the big changes that really do move that that needle. And it was kind of a matter of getting all of the different um we we needed to have the last cap report done. We needed that code analysis to understand what were the priority codes. We needed to have the building code and the energy code adopted to see where council was going to go with that.

We had a couple moving targets that we needed to just kind of land so that we could then move forward in a very fast motion and speaking for planning and I guess the group that I've been meeting with that does include some sustainability staff and housing. I feel like that's what we needed was that and now we have the the staff to just put on that and kind of move forward. So I just maybe to clarify or put a finer point on it. I don't know.

I mean I love the question what more resources do we need? And I wish I had the list of everything, but um the reality is is this team is so in tune to all the work and all the data that if we started pulling in new people, we'd be spending time catching them up. We just needed a few targets to kind of be set in place so we knew how to move forward. Um I I do want to ask if Nicole or Sarah Dar want to add anything to that. Looks like Sarah's good.

So Nicole, if you have anything Good afternoon, Mayor and Council. Nicole Antonopoulos, sustainability director. I just wanted to reiterate um and support the comments from Michelle McNelte. Genevie Perthri is our lead as um no surprise I'm sure on the last cap project and we have been looking very closely at her work plan to ensure that we're available at whatever paces needed. So, thank you. and mayor and council just to add because Sarah Dar didn't didn't come up. House Oh, she's coming up.

Okay, great. Okay. Okay. Okay. Mayor and Council Sarah Dar, housing director. Um, I'm going to say something I haven't said before, and I think Tyler was right. Um, in saying that something where all parties are slightly unhappy is a good mark of of compromise. And I can tell you as housing staff and sustainability staff and um planning and development staff have worked together, there have been a lot of discussions.

They have been in depth that have been weighing pros and cons of how how does this work? How can this work? What is the best decision here? What is the best recommendation? And Jennifer Michaelelsson was our housing person deeply involved in this. Um and the reports that I've gotten back um from her perspective are that we're in a good spot is that it's been hard. It's been a lot of intense discussion. I agree with Michelle.

We needed some targets in order to be able to to move forward on a few things. Um, but I can guarantee you staff is not lolly gagging on this and it is the complex conver this is what the complex conversations um have produced and while is it everything that we housing wanted? No. Is it everything all how sustainability wanted? No. It's a lovely balance and mix of things to bring forward to the community to see how it works.

and I'd be happy to answer any questions on a very high level if you have them. Thank you so much Sarah um for for adding that to the conversation and Nicole and and Michelle. Um I the part of the reason that I I asked that question and um it's because I I do agree that we are um in a position right now where we have a lot of moving pieces and nothing can ever move fast enough to keep up with the different demands of of our community.

And I don't think that that's anything that any of us on the dis or or any of you within your respective teams take for granted. Um but I also think that it's gone severely understated um just how much all of these different teams have worked together in collaboration to bring all of these things forward.

um as we're working across different programs and across different policy recommendations and across different um shifts in the way that we operate and the way that we're we're advancing all of these different goals. Um the thing that I've been most impressed by with our our various teams is the fact that um just as we're constantly reminded we have these two declared community emergencies and um uh concerns.

And you're all at the table and working together across these different programs, across these different recommendations, across these different policies to try and advance these things as quickly as we can in the most responsible ways that we can with that uh bird's eye view and bigger picture lens of how all of these things are working together to get us to the place that we want to be.

So, while I can agree that nothing is moving as as quickly as maybe we all hope, um nothing is easy in in any of these processes. I also am deeply appreciative of the level of consideration, thoughtfulness, responsible um planning and and processes that you're all putting into this from housing to development to sustainability to our fire department, everyone working in and beyond.

Uh everyone working in this um concerted effort and combined effort to move these things forward as as we need them to. Um we've had conversations from the dis about um where we fall between uh options two and option three and and four.

Um, and I think it was you, Sarah, who who said this about um, compromise and moving forward with all of these things again with that bigger picture lens uh, in place to try and advance things as quickly as we can, but also as responsibly as we can for the sake of our community and keeping in mind all of the needs that we're trying to address simultaneously.

Um, so I just wanted to to state that and thank you all again for the work that you've done and continue to do to advance these things in that responsible and thoughtful way. Um, despite the challenges and despite all of our desire that that things could happen faster. Um, we also recognize that things often have to work within the pace that we we have available and you can do what you can to expedite that.

Um, but also we're doing what we can to to do all of this responsibly with all of those things in mind. So, thank you. Thank you, Vice Mayor. Thank you. And I I too have a couple of things to reiterate from council member house.

I remember sitting up here and we were talking about the IECC codes and we were talking about doing three or four and I honestly didn't feel comfortable with that at all and went back to the team and said, "Hey, I think we need to relook at this please." And we and we collectively I probably I'll express that and I know that our staff did exactly that.

They worked really hard to address all of the needs of the community and it did take a compromise and we we did land on two and I think I agree with the realtor group and thank you for the comments. I do believe time is of the essence and we're going as quick as we can and I know that Michelle and Nicole and our housing team and and everyone knows that time is of the essence. They're hearing it from council all of the time. Um trust me on that.

So we are committed council and our team I know we are all committed to this. We are trying to accelerate as quick as we can. We're bringing things as it can come to us. We're we're talking about it on the deis and I just want you to know we are hearing you. You know I'm lucky I own a house but if I didn't write did didn't buy when I did I wouldn't be able to get into the market.

So I feel very fortunate and I want people in our community to be able to buy a home and stay here and raise their family and have their kids in the schools. Um, we are on a deadline. I think that two is a good compromise and I just I want to thank staff for really truly listening and we are we are committed. Thank you, Council Member Spence. Thank you, Mayor.

Um, after hearing tonight's comments and u seeing the print out from Capstone uh homes on uh estimates of the 2024 code implementation, the increased costs that are projected. Um I and and hearing the uh a deadline, not not a firm deadline, but a a target date of January 27 for us to uh eventually adopt the 2024 code to uh qualify for insurance uh considerations. I'm I'm leaning toward um postponing the the adoption at this meeting.

I appreciate that our manager and and uh all the staff have have worked hard to bring it to this point, but I think I would appreciate time to get a little more information on a couple from a couple sources. First of all, if other cities u have adopted the 2024 code, did they too consider these increased cost uh considerations? And what has been the experience in the building community in among the builders in those other cities that have adopted the code?

Have they seen these projected price increases for the construction costs? Another factor that I think needs a little more time to sort out is the availability of building materials. The non-combustible sighting. Uh Hardy board has been mentioned as one, but there um I think there are other ways to get a non-combustible exterior building surface. So, um there's a supply and demand factor that I would like to see play out in the next month or two.

Uh increased demand for non-combustible sighting is likely to increase the supply and possibly reduce the cost. So, with these things in mind, I'm asking if we could uh bring this back up for discussion um in December to uh beat the January deadline, but also which would allow us to get more information on some of these uh variables that we've heard about this evening. Thank you. Does staff want to respond to that? Mayor, I'm happy to jump in.

Um, Council Member Spence, I have concerns about delaying this. I mean, we've had several presentations on this item. Um, the date back months. Um, and I I think our team, we could probably make comments on um, you know, what some of the other cities have seen. If we delay this and if we delay this to December, I you know, we're going to start with a probably a brand new council. Um we've done a lot of work in education with this council. We feel like we have a good compromise.

Um and from my perspective, staying the course is important um for me and my administration. Thank you, Gary Nelson. um but also our team as well who have worked so hard on this to get to a point where we can um move something forward that works. Thank you. Um as vice mayor mentioned several amendments have already come to us and we have voted on them and adopted them.

I'm wondering um m probably Michelle how many of those because I'm not remembering the number how many and um and then remind me of how many are coming forward like in the next two months. Thank you. Thank you for that question, mayor. Um I think we've had six completed um before you since kind of last cap.

So is we committed at the very beginning of that process, we were going to do kind of what we called the lowhanging fruit, the the changes we could make that really wouldn't affect other things in code. So we've done um the subdivision process. So we've taken that to be a fully administrative process um accessory dwelling units um and that was part of a state code, but it was also in line with what we were doing in um last cap.

So allowing up to two and then a third if it's designated affordable as well as minimizing the parking requirements. Um we've done a lot with middle housing and we went above and beyond what the um state required. They were just looking at central business districts. We applied it across the city and that was significant in that it allows up to one to four unit um developments to go through just what we call the single family process. Takes it out of the interdivision staff review.

It cuts down on um concept review and and site plan review and puts it right into building permit review. Um we also did some fixes with the high occupancy housing to allow that and um more zoning districts. There was some limitations on where those were allowed and made that process a little more clear.

We've also done stuff with the um PRD or planned residential development um and really updated the standards on that to prioritize housing and um sustainable features of of developments and subdivisions. And then um the RPO pilot, well, we've done two things with the resource protection overlay.

We um made a tweak to the resource protection overlay to eliminate the um landscape or trees that are within you know required roadways to not to not count towards your number of trees that you had to save. And then we also came back working with fire and did the the pilot project. So in my opinion I feel like we've done a lot to kind of you know offset those costs. We've not quantified it, you know.

Um, but we talk about the addition of maybe what some of the housing code or sorry, the building code might add. Um, but I believe that we have done some things to offset that. We unfortunately haven't quantified that. We will be doing that as we move forward. And then we had the plan community development come forward that you approved tonight. And then we'll have um the zoning code process. So the zoning code text amendment process that's upcoming.

And then also within the next three months, we're hoping to have the resource protection overlay um come back to you in a codified form. So it's no longer the pilot program, but actually code. Thank you. That's that's um enlightening, I think. And and all of those changes require, as has been stated before, you don't just come up with an idea and then bring something to us and we vote on it.

Um it it takes the coordination of all these different divisions as well as researching what other communities are doing and anticipating um the best you can what the changes what else they might impact um within our zoning code. So, I just want to acknowledge that um a lot of work has gone into the overall project and a lot of work has come has gone into what you've already brought forward and I'm looking forward to discussing um each of them as you're bringing them to us. Thank you.

And I just I'm going to step out of my lane for a second and you know I also want to acknowledge these are just the things that planning and development services are doing with our partners in housing and sustainability. housing is doing a lot of other things to address the housing emergency. So, you know, they have the bond, they have the rental incentive program, they have other things they're doing. And so, this is just one piece of the puzzle.

There's a lot of other divisions who are working towards helping um move housing forward as well. Thanks. Thank you. Uh, Council Member Matthews, Council Member Alen, shall get back up. So um kind of piggybacking off of, uh, Council Member House, um, and I think Vice Mayor, um, and I know you you already addressed it, and I I do appreciate and I know the hard work that you you and your team and housing and sustainability.

I talked to um, you three teams probably the most because you're focused on the things that um, I focus heavily on. So, I just want to acknowledge that I I'm not calling you slackers. I know you guys work really hard, but um to um the realators group's comments, um the resource protection overlay is a big change.

I remember we talked about when um the pilot program was uh initiated and you'd contacted a existing property owner and let him know that you know he had space to build more housing units and that was really exciting and and and um promising. You said three months. Um is is there any possibility we could see that as a permanent code change by the end of the year? Um no and only because we have to still get it to planning and zoning.

And so I mean three months is probably really aggressive or probably closer to four just because of the um we have to do a work session with planning and zoning commission and then we have a public hearing with them and then we bring it to council. I mean that alone takes about that three months. And so um Tiffany and I mean this Tiffany is furiously working on that because we're finding that with the pilot program it's very successful.

I mean, Sterling Point is the development you're talking about and we have that infrasight plan review. That is the exact win that we are looking for for that pilot program and that it did allow us to look at an existing development and through the resource protection uh pilot program determined that you could take some of the resources that had been previously saved and open up a lot of more developable area for another apartment unit just so everybody knows what we're talking about.

That was huge. and we have several other contracts with developments that are coming in. There's also some challenges though just with the modeling and um we actually just got some news today. Thank you Neil. You always bring exciting news to us um of a potential for some refinement and how we get that modeling but still we're kind of at that point that we can streamline it by just getting we kind of know what we need to put in code. Thank you for that.

And and I know I say this a lot the speed of government. But would so with the pilot, just so I'm clear, the pilot program is available like it wouldn't change once we codify it into a permanent code. Correct. Mayor, can I just make sure that we're we're kind of we seem to be not talking about building code amendments. I just I want to just make sure that we're we can come back and do an update on this. Okay.

prepared to answer it, but I I I feel like we haven't had kind of an internal discussion on this and I don't want to make any commitments publicly and yeah, not a building code amendment and really I don't know the answer. I mean, I think what council directs us to do because I think the intent was we thought that the pilot program would be kind of a catch-all to help us understand how to put it in code and that code would replace the pilot program but All right. Thanks.

Council member Alen, I'm ready to make a motion. Mayor, great. Um, we had a commenter, a comment card come in a little late, so I am going to call up Phil Cone. Hi, Mayor, council members. Uh, Phil Cone. I'm here on behalf of the Northern Arizona Homebuilders Association and myself as a new resident and it looks like our our cards got mixed up for thanks thanks for working us in. I've got one small change that I think would carry through in a meaningful way.

Uh some of the good things that staff has done uh would just be a number in number out uh type of situation. If we have time and you're interested after my comments, we'd love to unpack that. and then a couple of considerations going forward that I think will address a lot of what the the speakers had here.

Um, you know, my my wife and I moved here from Dallas, Texas earlier this year and we're really grateful to be here, but a proposal that would add, you know, $8,000 to $20,000 to the cost of a home really makes me wonder, you know, how many other families are going to get a chance to do the same. I can tell you if it was closer to $20,000, I I wouldn't be here. at least at least not right now.

Um and it also raises the straightforward question and that's you know what does a home buyer get for the money. Uh consider for example the wall insulation requirements that uh staff that's where staff added some flexibility to the prescriptive requirements there which uh we appreciate but they didn't carry them through to the performance uh calculations. those are still holding on to a stricter standard.

And you know, maybe that's a drafting error, uh, but it's one that really would prevent builders from choosing affordable options that get to the same energy efficiency objective. Uh, those tables are designed in the code to work together so home buyers like myself can get the full benefit of that flexibility. And I' I'd encourage uh a conversation on that specific correction if if you're interested here in a bit. Um, you know, this uh, you know, there's also another concern.

These numbers were run at a time and they they reference 5% interest rates. Today they're 7.3% and unfortunately I don't think we're going back to 5% uh, anytime soon. But, you know, that takes me back to affordability. Lower utility bills, they don't matter unless you can get into the home in the first place and unless you can qualify for a mortgage. And that's where the nexus of our housing crisis is in this city.

And if we're serious about affordability, if we're serious about attending to the housing crisis and the climate climate crisis contemporaneously, then we need to give builders practical and affordable ways to deliver efficiency. And you know, that's that's what I'm talking about with I think the amendment that could make a difference here. There are also and this is a go forward consideration.

Uh there are other jurisdictions that use alternatives such as the ICC 700 green building standard and then another one that's called the HERS index. The HERS index is basically a miles per gallon rating for your home. It takes all the inputs there and and lets the best product win. So uh there's an easy change you could make. I would love to discuss it more, but obviously I'm I'm out of time, but I appreciate your consideration for new residents and future residents like myself. Thank you.

So, staff, the um what he referred to in terms of the the tables, do you have it right in in front of you? I can just say that we made the proposed amendment to the prescriptive path. Um, but that didn't apply to the other two building paths, the energy rating index or the performance path. Okay. Yeah. Thank you. All right. I don't see any additional questions or comments. So, Council Member Alen. Yeah. Madame Mayor, I'd like to move the issue. Um, and I move to adopt resolution number 2026-47.

Um, I can wait for Do we read the ordinance separately? Is that okay? I'll leave it there for now. I'll second discussion. All those in favor? I I. Any opposed? All right. And a motion to read. Madame Mayor, I move that we read ordinance number 2026-24 uh by title only for the final time. I'll second discussion. All those in favor? I I I. Any opposed? City clerk.

An ordinance of the city council of the city of Flagstaff amending the Flagstaff city code title 4 building regulations and title 5 fire code by adopting by reference that certain document entitled the 2024 suite of building and fire codes and related amendments to city code title 4 building regulations and title 5 fire code and fixing the effective date of the codes and amendments.

repealing all sections of the city code in conflict with this resolution, preserving rights and duties that have already matured and proceedings that have already begun under the prior codes, providing penalties for violations, providing for severability, and providing for an effective date. A motion to adopt. I move that we adopt ordinance number 2026-24. I'll second discussion. All those in favor? I I. Any opposed? All right.

Moving down to F, we have consideration and adoption of ordinance number 2026-21. Hi, mayor and council members. I'm here for the second read on the on ordinance number 202621 ratifying the grant and reservation of easements and formal acceptance dedications and rightaway of real property interests and I'm here to answer any questions if you have any. Council, do you have any questions that have come up since our last talk about this? I'm ready for a motion if you are. All right.

I will take a motion. Mayor, I move that we read ordinance number 2026-21 by title title only for the final time. A second. Discussion. All those in favor? I I. Any opposed? City clerk. An ordinance of the city council of the city of Flagstaff ratifying the grant of easements and rights of way formally accepting dedications of easements and real property interests providing severability authority for clerical corrections and establishing an effective date.

Mayor, I move that we adopt ordinance number 2026-21. A second. Discussion. All those in favor? I I any opposed? All right, moving down. Thank you. Finally to the public hearing item 11A. I am opening the public hearing and we have a presentation from staff. All right. Um thank you, mayor, vice mayor, and councel. Good evening. My name is Bethan Hang, um senior planner with the city of Flagstaff. Uh tonight the item before you is for 2661 North El Paso Flagstaff Road.

This is for the El Paso Industrial Park concept zoning map amendment and the applicant is in attendance tonight. This is the first of two reads for this um resoning request. So um a quick overview of this project. Again, this project is for 2661 North El Paso Flagstaff Road.

And the reason why you're seeing this application tonight is because the applicant is proposing to establish a construction storage supply yard and heavy manufacturing processing use on site which are permitted uses in the HIO zone. And that's why you are seeing a reszone request to the HIO zone tonight. And so the request tonight um and I'll clarify really quickly. So I have on screen um a vicinity map of the subject property but the reszone is actually for a portion of the property.

So the applicant is requesting to reszone a portion of the site which totals to about 23.89 acres from the existing highway commercial zone with a resource protection overlay to heavy industrial open with the resource protection overlay. I will also note that a portion of this portion that is being reszoned tonight um is already existing as he as heavy industrial open with the resource protection overlay and I'll explain um why in just a little bit here.

So again um the application is for the purpose of allowing construction storage supply yard and heavily heavy manufacturing processing uses on the site which are permitted within the requested zoning district.

So the roughly 23 acres um that is not included as part of this reasonzoning application but still part of the subject property is being set aside for city of Flagstaff use and it contains rural flood planes and steep slopes and there is also a city sewer and reclaim water lines existing on that section of the property. This area will also include a new foots connection. So going back to that portion that's existing as HIO.

This is from a direct ordinance zoning map amendment that was approved back in 2022 for roughly 7.29 acres resoning it from what was existing at the time which was highway commercial to heavy industrial open to allow a composting facility use on site which will remain with this resoning application. The applicant is intending to subdivide this subject property um to eight resulting parcels following the reszoning application. So a quick vicinity map.

To the north is Heavy Industrial which is owned by United Metro. To the west that's a AOT maintenance yard. To the east is the city of Flagstaff wastewater treatment plant. And to the south is state trust land as well as the Nestle Pyina factory. So I have on screen the concept zoning plan for this application.

So the the portion of the subject property that is reszoning to HIO with a resource protection overlay tonight is highlighted in yellow and the concept plan shown on screen shows how the applicant is intending to subdivide this property following the resoning request as well as the dedicated the allocated land uses for each of the resulting lots. Now for staff to forward a recommendation of approval, three findings need to be met for a zoning map amendment.

So 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 and any specific any applicable specific plans. If the application is not consistent with a general plan and any other applicable specific plan, the applicable plan must be amended in compliance with the procedures as established in this chapter.

So I will clarify that this resoning application is being processed under the previous regional plan the 2030 regional plan and that regional plan um allocates this subject property as a employment center and that includes mixeduse research and development offices and it goes on to describe certain other type of employment stimulating activities but for what's applicable for this application it's light industrial heavy industrial and um that industrial centric employment work.

Um this application is meeting this finding with the nature of what they are proposing as well as a strategic placement um in surrounding and adjacent to similar industrial uses. For finding two, the proposed amendment must be determined not to be detrimental to the public interest, health, safety, convenience, or welfare of the city of Flagstaff and will add to the public good as described in the general plan.

So staff believes that the proposed project will not be detrimental to public health, safety, or welfare. So as long as it is developed in accordance with all code and requirements and this project was required to go through the interdep departmental staff review where all the different divisions and staff make sure that the applicant is in conformance with our different development regulations and processes. So it's meaning this finding.

So the last finding for this um zoning reszoning application is that the site must be determined to be physically suitable in terms of design, location, shape, size, and operating characteristics and the provision of public and emergency vehicle access. public services and utilities to ensure that the requested zone designation and the proposed or anticipated uses and or development will not endanger, jeopardize or otherwise constitute a hazard to the property or improvements in the vicinity.

So again, um this application went through the interdep departmental staff review process and the impact analyses that were warranted by this application were reviewed by staff um to make sure that those um concerns would be mitigated. So staff believes that the proposed application meets the third finding as well. So there was a citizen participation plan component to this application as well. The applicant had notified neighbors within 600 ft of the subject property.

And the applicant also held two virtual public meetings on May 26th and July 21st, both with no attendees. And to date, staff has not received any comments on this application. So this application went to planning and zoning commission on August 12th and August 26. And planning and zoning commission fors the request to city council with a recommendation of approval with a vote to 5 to zero subject to the following five conditions.

Um and with that I will um open the floor for any questions but I'll leave the recoms on the screen. Thank you, council. Do you have any questions? All right. Thorough presentation and thorough staff report in the um packet. And we have no public comments on this item. So, I'm closing the public hearing and we can deliberate and take action. Mayor, I will move that we read ordinance number 2026-23 by title only for the first. I'll second discussion. Council member Alen.

Yeah, I'm uh this is an invitation and opportunity, not not anything required, but Art, I'm wondering if you want to if you're able to step forward and just speak to this project a little bit. I remember um approving the zoning change for the composting uh part of the business. I'm just curious about a larger overview of of way things are looking from your perspective and also if you could talk about the resource overlay and how that plays out in on your site. I've been there.

I don't know that the public has been there or anyone else on council can picture it. Um so just wanted to create some space for you. You don't have to take a long time. Yep. I appreciate it. Um thanks mayor, madame mayor and council. Appreciate the opportunity to take a few moments. um Art Babbot, 421 West Cedar Avenue in Flagstaff. Um I'll start by sharing what what our objectives and what we're trying to affect with this project. And we have some things we're trying to accomplish.

We're trying to grow, expand, and scale up our existing uh resource regeneration and organics waste diversion pro programs. We are uh going to expand our organics um that we are diverting from the landfill. We are going to provide an opportunity for um forest restoration and timber companies to offload and provide a local offtake for their low and nov value biomass.

And then really importantly because we had such a hard time finding heavy industrial space, we are going to provide opportunities this this action tonight if you so support it. And then in a couple weeks, we'll put more heavy industrial land on the books than we have put on the books at any one time in the last at least 30 years. And we believe a diverse economy and a healthy economy occurs when we have diverse opportunities for industrial, commercial, uh, and all those things.

But we we have really lost our heavy industrial base here. Um, and so and then the final piece, uh, is to really to build a more circular waist stream in northern Arizona. We our partner RTR does asphalt and concrete recycling. We are organic waste um recyclers and composting and and we've tried to build a hub and spoke model um and we have a lot of ideas. We'd love to share some of those.

I think they're opportunities that we're not clicking on yet here um that I think we we have because we brought some capacity. I think that's important for the city. Um and so as we envision the resource protection piece, this is a very unique parcel because there's very you know there slope resources but there is very little treed resources um and I think how that relates to council's other conversation um is we're a little bit of an anomaly. We don't have a lot of resource protection.

We do have slope and so in in many respects this is an easier project. This is um you know it's been 16 months since we started and and we're hoping hoping to get your support to move us over uh the finish line and hopefully that addressed some of some of what you were looking uh for council member. That's all. Thank you Art very much and and thank you for all your years of service to the city. Great. Thank you. All right. All those in favor? I I Any opposed? All right.

May city uh clerk an ordinance of the city council of the city of Flagstaff amending the Flagstaff zoning map to reszone approximately 23.89 89 acres of real property generally located at 2661 North El Paso Flagstaff Road from the highway commercial HC zone with the resource protection overlay RPO to heavy industrial- open HI-O zone with the RPO providing for severability authority for clerical corrections and establishing an effective date. Thank you. Yes. So, it's not just me. All right.

We're down to the regular agenda 12A, consideration and adoption. Thank you, Art. Thank you. of resolution number 2026-49. Oh, somebody deleted it. Just a minute, Mayor and Council. My presentation was deleted. There it is. Hello, mayor, vice mayor, city council members. Uh Rick Tedar, management services director and city treasurer.

Uh before you is resolution 2026-49 uh which is a resolution declaring our intent to reimburse ourselves uh from capital project costs at a future date for bond proceeds. So why is staff asking for approval resolution? Uh this is a procedural step that's allowed by the federal treasury uh in the regulations on taxexempt bonds. you can set forth a declaration to reimburse yourself before debt is issued allowing you the timing to issue debt that's more appropriate uh for your organization.

Uh so this does not authorize the debt itself and issuing that but just mainly saying we intend to reimburse ourselves once we do issue that new debt. Here is um kind of a spend. First, we want to be able to spend uh our proceeds on our capital projects. Uh then later, we'll do a ordinance with the city council to actually borrow uh debt on behalf of the city and then we'll reay ourselves uh from those proceeds that we receive uh once we issue debt.

So, it's just a timing of when we're going to get our cash reimbured on our capital projects. So, we have used this quite often. Uh here's a schedule of for the last 10 years of some resolutions that I brought forward for your approval. Uh and I appreciate your uh approvals back all the way 2017. Uh so 2017 uh we did it for road repair and street safety bonding as well service maintenance facility bonding.

Uh 2018 uh was our FWPPP as well as public safety communication and some water and wastewater capital projects. Then 2019 uh was for a courthouse uh project and we have some more water wastewater and storm water projects. Those first are are closed at this time. We're not using those reimbursements anymore because we've already issued bonds related to those or we've issued new resolutions.

April 2022, we did a um a reimbursement resolution for water reclaim, storm water, and transportation bonds. Uh this is one that we're looking to sunset with this resolution that we're looking to adopt today. Uh so that resolution will go away and we will use a current resolution uh for your approval today. We still have a remaining reimbursement resolution for our 20 November 2022 GEO bond measures.

Uh this was our infrastructure uh debt for public safety uh waste or wastewater and storm water as well as our housing bonds uh that the public approved. We're going to leave that remaining in effect and we'll be issuing bonds on those probably within the next year uh for us. So tonight is related to four propositions that were approved by voters or three propositions approved by voters as well as four of the water service funds. So here's just a graphic um from today.

Uh we're looking for you to declare our intent uh with your adoption. After this, we'll start uh spending uh on capital projects that we have already in the pipeline uh and use cash uh in our funds at this time. Later, uh we'll be coming back maybe early next calendar year uh to ask you to authorize the issuance of those bonds uh for some of these projects. We'll probably also come back a year from now for authorization.

Then the last step is for us to issue those well second last step is to go out in the market and issue those bonds uh for our organization. And then fifth we get our money back. We receive our bond proceeds and first person paid back is the city of Flagstaff. Just to notice without the reimbursement resolution basically it would be we'd start with number three. number four and number two. So, we would authorize the issuance through an ordinance.

We would issue the debt and then we begin to spend on capital projects. So, we're just looking to spend ahead of issuing debt. So, for this resolution, it will cover uh voter approved propositions as well as all the four water service funds. First off is Proposition 405 and this was is the watershed protection uh projects. Uh we're only looking for a small part for your authorization. Uh it'll be less than 650,000 and this is a geo bond paid back by secondary property tax.

The reason we're asking you on this one today is we currently have a loan with WIFA Water Infrastructure Finance Authority of Arizona. uh we would like to deobligated the remaining portion just a small portion of the bonds we issued with them and move that to a regular general obligation bond.

And what this does it allows our fire department to more effectively and efficient deliver on those last remaining projects that we have in the pipeline uh for the FWPPP and hopefully close that out in the next uh year or so. The second one is uh Prop 419 and this was for our road roadway, pedestrian, bicycle and safety improvements. Uh this is a sales tax that voters approved.

Uh we're looking for authorization of $50 million at this point and this will be paid back through the transportation sales tax. Uh the big project within this group is the JWP, the city portion of that project. Uh we're we're starting to move on that project. We're not ready to issue debt yet. Um but we're getting your approval to get reimbured later. The next one is Prop 420 and this is the Lone Tree overpass uh Butler to Route 66.

On this one, we're looking for a $35 million uh reimbursement authorization. And this also is a transportation sales tax. Uh on this one, the big project of course is the overpass. Uh we are starting to move along uh with that project, spending a lot of money on on roads and intersections. And now we're at a point we need a cash flow uh to keep the project moving. Then we have our enterprise funds, uh water service enterprise funds.

uh with the adoptions of rates over the past several years, uh those studies and those rate adoptions definitely demonstrated that we would issue debt uh for our major capital projects. Uh so that was built into the five-year plans and is also part of the budget adoption that we have in this year's budget.

Uh for the water fund capital projects, um the five-year plan shows 52 million in in debt to issue over the next five years, but we're only looking for 16 million for the next couple years to issue those debt. We want don't want to get too far ahead of us. Uh big items here is the Lake Mary sedimentation basins and potentially Schwitzer Canyon uh transmission line. Wastewater fund projects.

Uh in the five-year plan, we have about 27 million in our five-year plan, and we're looking to do 15 million of your authorization. Uh for this one, um some of the items included here, the big item included here was a real treatment, real solids treatment project, uh that the water service team is working on. The next one is our reclaim water fund. Uh the reclaim water fund shows the $1.5 million. This is related to the bottleneck of the reclaim line going up to the Buffalo Park tank.

Uh upsizing that line. We were going to issue debt for that project and that is getting close to um started, designed and moving forward at some point in the near future. And the last water services fund is the storm water fund. In the five-year plan, it shows about $22 million in debt issuance, but we're looking for just 21 million. Uh this one is covering um a project, storm project like Fanning Wash, as well as uh preparing ourselves for Rio de Flag funding.

Uh we may be seeing Army Corps of Engineers requesting funding uh for the continuation of the um reel to flag project. And so we want to get this authorization in case there's a time where we got to issue that check to them, but we'll reimburse ourselves at a later time. So those are the projects uh and the authorizations I am seeking today. Uh we're in the planning stages.

We're going to I work with my uh finance team, my budget team as well financial adviserss and bond councils to talk about timing and issuing of debt. You know, market's a little high in rates right now. Do we want to wait and issue it at a later time? Uh those are things we're talking about. Um my intention is to do some debt later this fiscal year. Uh so by June, uh hopefully to issue some debt as well as some additional debt next fall.

So with that, uh we're recommending for next steps that you read resolution 202649 and then adopt. And what this does this inclares declares our intent for those three propositions and for water services fund. It sunsets the 22 authorization but it leaves that 2023 resolution effect. And again to note this does not authorize the issuing of debt. I will be back for that part with you. And next steps we'll start keep tracking those costs that have incurred since this resolution.

I'll return with to council with an ordinance to issue those debts and then uh I'll issue a portion that later this year next year. I already mentioned that. And then once we issue, I will reimburse the city for those costs that we incurred. And with that, that's all I have for this presentation and information. And I'm here for any questions. Thank you. I have a question. when you um when you issue the debt, how long does it take to get the funding?

Like is it is it a quick thing when you decide that you're going to issue the debt? So, when we decide to issue a debt, uh we have to do an ordinance to issue that. So, it's an ordinance, two reads in 30 days before we can go on the market. uh once we go on the market, it's a fairly quick turnaround from then. It's it's within a week we'll get those funds after that. So it takes 60 to 75 days or so. Thank you. Yep. I don't see any questions, so I will entertain a motion.

Mayor, I move that we read resolution number 2026-49 by title only. I'll second discussion. All those in favor? I I. City clerk.

A resolution of the Flagstaff City Council declaring for purposes of section 1.1502 of the federal treasury regulations official intent to be reimbursed in connection with certain capital expenditures relating to the November 2012 election for Proposition 405, November 2018 election for Propositions 419 and 420, water fund projects, wastewater fund projects, reclaimed water fund projects, and storm water fund projects and establish lishing an effective date.

Mayor I move that we adopt resolution number 2026-49. A second discussion. All those in favor I I. Any opposed? Thank you, Rick. Thank you. All right, we are down to B, consideration and adoption of ordinance number 2026-22. Hello Bryce. Good evening, Mayor and Council. I I realized that I did not show you where this is in the world. So, what this ordinance is do is doing is if I want if Rick is going to cut me a check to buy something, I actually need authority from you to do that.

Um, we just like that second read for all those acceptance of easements. When we're accepting things, we generally bundle bundle them all up and then take them to you, you know, every once every year or so. But if I actually need to p pay pay dollars for it, um Rick likes to make sure that council has agreed to uh to doing that. And so, um on one of the pieces of the Fanning Wash project, um they're going to upsize a covert off of Steve Boulevard.

So, you're up in uh right off of Linda Vista there. And then uh what we need is we need a drainage easement of about 2,000 square feet off of this home here so that we can uh remove the covers existing and put in a big box coververt there and uh we've been in touch with the property owners. I think we're ready to extend our offers, but I need authority for that.

So this ordinance will accomplish that so that we can close this transaction and they can uh program this work into next year's construction plans. And that's what this does. I'm happy to address any other questions. Council, any questions? All right, then. I'm looking for a motion. Mayor, I'll move to read ordinance number 2026-22 by title only for the first time. I'll second. Discussion. All those in favor? I I. City clerk.

An ordinance of the city council of the city of Flagstaff authorizing the acquisition of real property interests necessary for the Fanning Wash Culvert at Steve's Boulevard project, a public use, providing for delegation of authority, subsequent council approvals, severability, and establishing an effective date. Thank you. Thank you, Bryce. You're welcome. So, next up, C, consideration and approval of a contract. Take it away, Bryce. All right.

So, I started here six years ago and when I started here, they told me um we are going to build this thing called Reader Flag Flood Control Project and the Lone Tree Overpass um like this year. So, you need to buy all this stuff. And little did we know that that includes a whole lot of people, a whole lot of big organizations, the railroad, the Army Corps, and I am very pleased to to get to say this, and this is not my work at all.

This is mostly all the work of Christine Cameron, but uh we're at to the point where the railroad is ready to sell us, and we are ready to buy the land that we need for the Rio Flag Flood Control Project and the Lone Tree overpass. And let me show you what that is. So that we're over there in the star right off of Butler.

So in any deal, we don't need all the land, but uh the railroad was losing rail access to a lot of this land even though it wasn't technically being served by the railroad right then. And so as part of the condition for these projects moving forward, they said, you know what, go ahead and buy all this land. Um, so that was one of the conditions. And so what we're actually buying is all this hatched yellow right here.

Um, right in the middle of that is a batch plant that we bought last year or the year before. Um, and so this is really the final piece for all of these all of these projects to begin. This hatched yellow is 14.28 acres. Um, the next slide is going to show you kind of what we need. This is a little busy, but what we need is the land in the aqua. So in between the aqua, that's the overpass going over this property.

And then uh the white on the north side of that property is the Rita Flag open channel. And so what we're going to be end up what we're going to be left with after those um projects come through is about 7.88 88 acres of land that um there are some plans in the Southside community or Southside um specific plan that can kind of help direct, but largely um these are going to be lands that we can use to essentially help pay for these projects um or address any kind of council needs.

So, we do have some internal kickoff meetings once this thing closes in the next couple weeks. Um, and we hope to kind of bring you some ideas of what kind of direction we want to do with those excess lands. Um, total purchase price is 6.85 million and this is in line with the appraisals that we received and this was in line with the appraisals that the BNS BNSF conducted for this um the funding sources. So it's kind of split by acreage was the acreage which was actually needed for each project.

So Lone Tree is kicking in 72% of the cost and Reader to Flag is kicking in 28% of the cost and we do have the ordinances to acquire um several of them from many decades uh past for these projects and we've got the money and this year's budget and so that's what's happening here. Um once we close, we expect to close October 19th, I believe, is the plan. And so we're moving to a quick close here.

Um we will reserve all the land needed for these projects and then we will kind of kick off some kind of uh development potential discussions to bring forward at a future date. That's what we got. And I also wanted Christine to come uh give you an update about because I'm not going to pr prognosticate on you know timing of any of these things but you know she's happy to do that.

Good evening mayor vice mayor council Christine Cameron senior project manager with capital improvements and yeah this is super exciting. So and there was no one here to see it but um people online I did want to give you a brief update on the Lone Tree overpass project. I don't know if anyone has driven the project today, but um we're wrapping up fairly quickly on phase one. We have all the um traffic signals energized. We have the traffic control down. It's looking really nice out there.

Um we've got a little bit of landscaping and signage to go in still, but um that should be done in the next couple weeks. And then in the spring, we want to start with the overpass. So, we'll have the property. And we're also working with BNSF on um excuse me, construction and maintenance agreement. And um BNSF is out there doing some utility relocations. So yeah, as soon as the weather kind of clears up in the spring, we should be out there and hopefully turning dirt for the overpass.

I have a quick question about that. Um, what kind of disruption to BNSF will the construction be? Since we're bringing in a third mainline with our project, which they're helping to pay for through the downtown M project um um through the downtown section, uh there will be no disruption to be an SF really. They are they're always going to require those two main lines to be in operation.

when we do cut overs uh from one uh rail to the next, we'll have track windows of about four to eight hours and those will be very limited and they're in kind of in control of those, but that'll be the only impact really. Thank you. Y and we do anticipate um we'll be updating the website with the same information now that we've got some more concrete data. So, awesome. Okay. Thank you. All right. I don't see any questions. So, I will um take a motion.

Mayor, I move that we approve the real estate purchase and sell agreement. I'll second. Discussion. All those in favor? I I. Any opposed? All right. Next up is open call to the public, and we do not have any. Then we have announcements and updates two from council and the city manager. And I'll start with council member Matthews. I have nothing tonight. Thank you. Council member Alen. I'm good. Vice Mayor, I guess I'll pass tonight. Now I'm interested in what you were going to say.

Um, Council Member House, just a few things. I'm just kidding. I have nothing tonight. Council member Spence. Thank you. The uh one of my uh projects, one of my interests is the plaque at the restored log wheel at the visi downtown visitors center. Uh thanks to the Rotary Club of Flagstaff and the beautifification department of the city, a properly worded plaque is now in place um by that historic re restored log wheel.

The original uh plaque, a heavy 50 lb brass plaque that had an incorrect word has been donated to the uh NAU uh school of forestry for them to um see if the forestry students can find the wrong word on how to use a log wheel. So, I encourage people to stop by the visitor center and and see how the log wheel was actually used. Thank you.

Uh, I just want to remind people of the open house tomorrow night for propositions 404 and 405, which are the cities, and then propositions 407 and 409, which are FUSDs. And this will take place at the Aquiplex from 5 to 7:00 p.m. And our very own Shannon Anderson uh will be there to answer questions. And then just to also remind that there are extensive qu uh answers to questions uh videos information at publicsafety ballot.com.

And um so I'm hoping that people are taking a look at all those materials because ballots start being mailed out tomorrow. City manager. Uh, mayor, you actually stole mine, but I I do want to just really stress that the frequently asked questions um item on that website is really important because Shannon, every question that we get, we add to that frequently asked questions document and it's very comprehensive and um any questions I think can be answered in that document. So that's all I have.

Thank you. All right.