* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. OKAY. [00:00:03] OKAY. GOOD AFTERNOON, [1. CALL TO ORDER/PLEDGE OF ALLEGIANCE/MOMENT OF SILENCE] EVERYONE. WELCOME BACK FROM A LONG BREAK FOR US. HOPE YOU ALL HAD A GREAT NEW YEAR AND A MERRY CHRISTMAS AND HAPPY HOLIDAYS. WE'RE GOING TO CALL THIS MEETING TO ORDER. PLEASE JOIN ME FOR THE PLEDGE OF ALLEGIANCE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. A MOMENT OF SILENCE FOR THE, FOR THE FIRE PEOPLE. YEAH. OH, YEAH. OKAY. NOW JOIN ME FOR A MOMENT OF SILENCE AND FOR THE MANY PEOPLE IN CALIFORNIA WHO HAVE JUST BEEN UNDER UN GRUELING OPPORTUNITIES AND ISSUES THAT THEY'VE HAD TO DEAL WITH. SO MOMENT OF SILENCE, IF YOU WILL. OKAY. THANK YOU VERY MUCH. MADAM CLERK, WHERE ARE YOU? THERE YOU ARE. OKAY. WHEN YOU'RE READY, ROLL CALL PLEASE. [2. ROLL CALL/MOMENT OF ART] MAYOR JALO. PRESENT VICE MAYOR PLU. HERE. COUNCILOR DUNN. PRESENT. COUNCILOR FOLTZ. HERE. COUNCILOR FURMAN. PRESENT. COUNSELOR KINSELLA. HERE. COUNCILOR FAF. HERE. THANK YOU. OKAY. WE HAVE NANCY LATTANZI WITH OUR FIRST MOMENT OF ART FOR 2025. THANK YOU. GOOD AFTERNOON, MAYOR, VICE MAYOR AND COUNSELORS. HAPPY NEW YEAR. AS YOU SEE, WE HAVE A BRAND NEW EXHIBIT, UM, THAT I'M PROUD TO ANNOUNCE IS THE WORK OF CAROL BENAL. SHE'S A LANDSCAPE PAINTER, AND BELIEVE IT OR NOT, THERE ARE 75 PAINTINGS IN THIS COLLECTION THROUGHOUT ALL THE ROOMS BETWEEN THIS, THE VOLTI CITY MANAGER AND MAYOR'S OFFICES. SO, UM, CAROL IS ORIGINALLY FROM BOSTON. SHE SPENT TIME STUDYING THE ART OF RENAISSANCE MASTERS AND IMPRESSIONISTS, AS WELL AS NATIVE AMERICAN COLLECTIONS OF ART SHE FOUND IN THE MUSEUMS IN BOSTON. SHE THEN PURSUED A BFA FROM MASSACHUSETTS COLLEGE OF ART IN BOSTON AFTER COLLEGE. AND INTRIGUED BY GEORGIA O'KEEFE'S CONTEMPORARY PAINTINGS, ALI VENTURED TO NEW MEXICO INSPIRED BY THE OPENNESS OF THE LAND AND THE ARTISTIC TRADITIONS OF THE NATIVE AMERICAN CULTURE. AND SHE ALSO CONTINUED ART CLASSES. SHE THEN MET HER HUSBAND AND MADE PIN ARIZONA HER HOME FOR OVER, ACTUALLY IT'S ALMOST 40 YEARS NOW. UM, HER FAMILY INCLUDES HER DAUGHTER AND GRANDCHILDREN, AND THEY'VE LIVED ON THE NAVAJO RESERVATION DITA FOR 40 YEARS. BEN HAS CONTINUALLY ENJOYED PAINTING THROUGHOUT THE SOUTHWEST AS WELL AS PAINTING PLAIN AIR ON THE COL COLORADO PLATEAU. HER PAINTINGS REPRESENT THE SPIRIT OF THE LAND AND SKY THAT EVOKES THE ESSENCE OF A PARTICULAR PLACE IN TIME WHEN PAINTING THE SCENE ON LOCATION. SHE USES A RANGE OF COLOR, TEXTURE, AND FORM TO DESCRIBE THE LANDSCAPE WITH COMPLEXITY, SUBTLETY, AND MOST IMPORTANTLY, BALANCE. CAROL STATES, I AM ALWAYS DRAWN TO THE IRRESISTIBLE FORCES THAT SEEM TO BRING ME CLOSE TO THE EARTH WITH COLOR AND BRUSH STROKES WHERE I FORM AND TRANSLATE THE POWER AND SPIRIT OF THE LAND AND SKY. THE MORE I SEE, THE MORE I HAVE TO PAINT THE EARTH'S ABUNDANT BEAUTY AND CONTINUE MY LIFELONG EFFORT TO COMMUNICATE THE EMOTIONAL CONNECTION I FEEL WITH MY ENVIRONMENT. SHE HAS RECEIVED MANY AWARDS FROM PLAIN AIR COMPETITIONS IN NEW MEXICO AND ARIZONA HAS BEEN REPRESENTED BY MANY GALLERIES IN THE AREA. CURRENTLY SHE'S REPRESENTED BY WEST OF THE MOON GALLERY AND FLAGSTAFF, AS WELL AS SEDONA ARTIST MARKET. SHE'S A MEMBER OF OIL PAINTERS OF AMERICA, AMERICAN IMPRESSIONIST SOCIETY, PLAIN AIR PAINTERS OF NEW MEXICO AND ARIZONA. PLAIN AIR PAINTERS. KEEP THESE, UH, DATES IN MIND. I HOPE YOU'LL ALL ATTEND HER ARTIST RECEPTION WILL BE THURSDAY, FEBRUARY 6TH FROM FOUR TO SIX IN THIS ROOM IN VOLTI. AND WE ARE HAVING OUR FIRST EXPANDED MOMENT OF ART OR MOMENT OF ART 2.0, UM, WHICH WILL BE A CHANCE TO SPEND MORE TIME WITH CAROL ON THURSDAY, MARCH 6TH FROM THREE 30 TO FIVE 30 IN THIS ROOM, SHE WILL SPEAK ABOUT HER WORK AND HAVE A PRESENTATION, AND SHE WILL DO A, UM, CONDUCT A PAINTING DEMONSTRATION. SO WE'LL HAVE SOME TARPS ON THE FLOOR AND YOU CAN WATCH HER PAINT AND GET TO KNOW CAROL BETTER. SO, WITHOUT ANY FURTHER ADO, CAROL, BE, THANK YOU EVERYBODY. UM, THIS IS QUITE AN HONOR AND, UM, IT'S QUITE A SPACE AND IT'S JUST ABSOLUTELY, UH, BEAUTIFUL. I DON'T, I, I, UH, KIND OF EQUATED IT WHEN I WAS SITTING HERE AS TO A MUSEUM. IT'S JUST, UH, IT'S AN AMAZING HONOR TO BE HERE. THANK YOU VERY MUCH. I WILL GO THROUGH THE SLIDES PRETTY QUICKLY. I, I DIDN'T KNOW, UM, SHE WAS GONNA READ ALL [00:05:01] OF THAT, AND SO YOU CAN SIT DOWN. UM, I THINK THAT SAYS A LOT IN THE SLIDES, BUT, UM, PICTURES ARE WORTH A LOT, SO I HAVE TO GO THROUGH THEM. THAT ONE RIGHT THERE. OKAY, THANK YOU. SO, UM, ALI, YES, IS A NAVAJO NAME. UM, AND, UH, I'VE BEEN MARRIED OUT THERE 40 YEARS. UH, UM, I LOVED THE LAND. UM, I ALWAYS, UM, I THINK I CAME TO THE SOUTHWEST. AT FIRST IT WAS SEDONA, OF COURSE, AND THEN, UM, IT WAS JUST EXPANSIVE. UM, THE GEOLOGY AND THE, THE ROCKS AND THE FORMATIONS. I JUST HAD TO KEEP SEARCHING. UM, ORIGINALLY I WAS FROM THE OCEAN, WHICH I MISS VERY, VERY MUCH. AND SOMETIMES I DO GO BACK AND, UM, I LIKE TO PAINT, UM, MARSHES AND, UM, JUST REALLY LARGE SHAPES. UM, THE BIGGER THE CANVAS, SMALLER CANVAS, WHATEVER SIZE. UM, BUT IT SEEMS TO, UM, BE VERY, UM, ABSTRACT. SO I ENJOYED IT. THAT'S ONE, THAT ONE OF MANY THAT SOLD BACK EAST. UM, AND I LEFT BACK EAST BECAUSE EVERYTHING WAS BLUE AND GREEN AND, BUT, UM, NOW I SEE IT'S BEAUTY. UM, THAT'S ONE OF THE SHOWS IN, UM, MASSACHUSETTS THAT I WAS AT. I MARRIED MY HUSBAND. UM, IT WAS JUST, UM, LOVED NAVAJO ART. AND, UM, I'VE BEEN THERE SINCE 84. WE BUILT OUR HOME, UM, AND, UM, I WANTED TO COME ANYTHING BUT BLUE AND GREEN AT THE TIME. UM, SO THIS IS, UM, ACTUALLY OUR FRONT YARD. I MEAN, THERE IS, THERE ARE NO FENCES. IT'S WIDE OPEN. UM, HORSES COME IN, COWS, IT'S OPEN LAND. THIS IS MY RIDE HOME FOR THE LAST 40 YEARS. THE LAST, UM, 18 MILES OF DIRT AND THE BUREAU OF INDIAN AFFAIRS AND THE STATE OF ARIZONA AND EVERYBODY INVOLVED WILL NOT PAVE IT. AND RIGHT NOW IT LOOKS REALLY SMOOTH, BUT MOSTLY IT LOOKS LIKE THE BOTTOM OF THE OCEAN WASHBOARD, BUT IT'S FULL OF, UH, IT CAN BE MUDDY. UH, BUT THAT'S MY RIDE HOME FROM FLAGSTAFF IN, INTO THE RESERVATION. UM, PAINTING THE SPIRIT OF THE LAND, UM, OPEN SPACES, THE GEOLOGY, IT, IT'S LIKE ARCHITECTURE TO ME. IT, IT'S, UM, I, I LOVED ADOBES AT THE TIME, AND I'VE PAINTED THOSE ALSO. BUT SOMETHING ABOUT THE ROCKS, AND, YOU KNOW, OF COURSE THE DONUT, YOU DON'T HAVE TO SAY MUCH MORE THAN THAT, BUT IT'S THE ARCHITECTURE. I'LL GET OUT AND PAINT, PAINT BY MYSELF. UM, IT DOESN'T MAKE ANY DIFFERENCE IF I'M WITH SOMEBODY OR NOT WITH, WITH ANYBODY. I'M CAREFUL. BUT, UM, I LOVE TO PAINT, UM, NATURE. IT, IT TEACHES ME A LOT. UM, A CAMERA CANNOT CAPTURE THE COLOR THAT IS OUT THERE, ALBEIT CANYON DEHA. UM, I HAVE, UM, I PROBABLY SHOULD HAVE TAKEN A PICTURE OF STACKS, STACKS AND STACKS OF, UM, PRACTICE, PRACTICE, PRACTICE. IT'S THE MOMENT THAT YOU STOP, THE MOMENT YOU GET RUSTY. SO, UM, I, IN FACT, TODAY, I, I HAVE PAINT ON MY HANDS BECAUSE I WAS OUT PAINTING TODAY IN SEDONA. I'LL PAINT ANYWHERE. SOMETIMES I GET STOPPED BY POLICE AND SAY, ARE YOU ALL RIGHT, MISS, ARE YOU LOST? I'M LIKE, NO, I, I'M JUST IN IN MY CAR PAINTING 'CAUSE IT'S TOO COLD TO STAND OUT THERE. SO THAT'S MY LITTLE BOX, AND I'LL SIT IN THE CAR, OR IF I FEEL LIKE, UM, IT'S AN AREA THAT I SHOULD PROTECT MYSELF, THEN I'LL SIT IN THE CAR AND PAINT. UM, THIS IS MY STUDIO. UM, UM, THE ONE ON THE RIGHT IS IN, UH, I'VE BEEN CLARKDALE. UH, WHEN I GET TIRED OF THE RESERVATION, I GET TO GO THERE AND, UH, I HAVE A STUDIO THERE. AND THAT'S MY ONE ON THE RESERVATION THAT I'VE HAD FOR THE LAST 40 YEARS. UM, I, I JUST LOVE, UH, BLACK ROCKS, RED ROCKS. UM, IT'S NEVER THE SAME, UH, FROM SEASON TO SEASON, DAY TO DAY, UM, SEASONS, WELL SEASONS, BUT MOSTLY THE LIGHT CHANGES VERY SUBTLY. BUT IT DOES. UM, GALLUP, SEDONA, MONUMENT VALLEY. UM, I GOT A COMMISSION. I GOT MANY COMMISSIONS IN SEDONA TO PAINT, UH, 30, I THINK IT WAS A 40 BY 60 OF THIS. THIS WAS MY PRACTICE PIECE THAT IS HERE IN THE SHOW SOMEWHERE, , UM, BACK TO BLUE AND GREEN. I WAS AT DEAD HORSE STATE PARK, AND YOU JUST DON'T NEVER KNOW WHAT YOU'RE GONNA FIND. SO THERE'S MARSHES HERE IN ARIZONA, AND, UM, I LOVE THE STORM CLOUDS. I LOVE WHO COULD NOT LOVE THE CLOUDS HERE IN, IN, IN, IN ARIZONA, STORM CLOUDS AND SKIES. UM, EMPHASIS THOUGH FOR ME IS ALWAYS LIGHT AND SHADOW. I HAVE TO FIND THE RIGHT LIGHT AND SHADOW, AND I LOVE TO FIND COMPOSITION. AS I'M DRIVING, I WILL JUST STOP AND TAKE PICTURES, UNUSUAL PICTURES, ABSTRACT SKIES. [00:10:01] UM, I'M A, I'M A MIX BETWEEN ABSTRACTION AND, UM, IMPRESSIONISM AND, UM, I GO BACK AND FORTH QUITE A BIT. SACRED MESA, UM, CAN A MESA BE SACRED? UM, YOU FEEL THINGS HERE IN SEDONA, I CAN FEEL THINGS JUST IN ROCKS. UM, I'LL BE DRIVING BY. AND THEN THE NORTHERN ARIZONA MUSEUM TOLD ME THAT HOPI USED TO DANCE AT THIS MESA WHEN THEY HAD TO HIDE THEIR RELIGION, THEY WOULD HIDE BACK IN THERE. AND I'VE PAINTED THIS ONE MANY, MANY TIMES AND IT WAS, IT WAS, UM, BOUGHT FROM A LADY IN, AT A MUSEUM OF NORTHERN ARIZONA EXHIBIT, UM, WHAT MY ART ISN'T, UM, A FORMULA. I, I DON'T HAVE ANY FORMULAS. I, UM, EVERY LANDSCAPE I HAVE TO SEE DIFFERENTLY. UM, A LANDSCAPE IS WHAT MY SORRY ISN'T, IS IT'S NEVER MADE UP. I NEVER, YOU KNOW, JUST WING IT AND I HAVE TO SEE IT AND I HAVE TO FEEL IT. I HAVE TO EXPERIENCE IT. IT'S THAT ONE MOMENT, THAT SPECIAL MOMENT, THE COMPOSITION AND LIGHT THAT CAPTURES THE ESSENCE. THAT'S WHEN I KNOW I HAVE THE BEGINNING OF A PAINTING. I, I MIGHT DO A, A LITTLE SKETCH OR SOMETHING, BUT, UM, IT, IT, THIS IS A ANOTHER, THIS IS A PAVED RIDE HOME, UH, FROM THE GRANADO ENTRANCE INTO PINON. UM, IF YOU LOOK UP PINON, YOU'LL SEE HOW REMOTE IT IS. AND, UM, THIS ONE IS A PAVED RIDE IN, AND THAT DAY I HAD TO STOP BECAUSE THE CLOUDS WERE JUST RIGHT. THE ROAD WAS JUST RIGHT, AND IT JUST REPRESENTED WHAT I FELT THAT AREA HAD. AND, UM, SO THAT SHE SAID, SHORT AND SWEET, FIVE MINUTES. AND I, I THANK YOU, UM, FOR LISTENING TO ME. AND, UM, IT'S BEEN A LIFELONG JOURNEY. AND, UH, I STILL GO BACK TO MASSACHUSETTS AND I'VE, I'VE PAINTED THE OCEAN TOO, BUT I, I LOVE THE SOUTHWEST, SO THANK YOU VERY MUCH. I'M, THANK YOU, CAROL. I HEARD MY, ALSO, ONE QUICK NOTE, UH, CAROL WAS GONNA MENTION IS THAT IF ANYONE WANTS TO PURCHASE HER PAINTINGS, EVERYONE, NOT JUST STAFF IS GIVEN 20% OFF. SO KEEP THAT IN MIND. , VERY GENEROUS. I'LL SAY THANK YOU VERY MUCH. OKAY, ITEM THREE, CONSENT ITEMS. [3. CONSENT ITEMS - APPROVE] WE HAVE ITEMS A THROUGH F. THIS IS THE OPPORTUNITY WHERE THE STAFF, UH, COUNCIL OR THE, UH, THE PUBLIC WOULD LIKE TO HAVE AN ITEM PULLED. AND IS THERE ANY INTEREST FROM THE COUNCIL? NO. ALRIGHT. CAN I HAVE A MOTION PLEASE? MAYOR, I'D LIKE TO MAKE A MOTION TO, UM, TO APPROVE CONSENT ITEMS THREE A THROUGH F. SECOND. OKAY, ALL IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? HEARING NONE, UNANIMOUS. OKAY. APPOINTMENTS. WE HAVE NONE. SUMMARY OF CURRENT EVENTS [5. SUMMARY OF CURRENT EVENTS BY MAYOR/COUNCILORS/CITY MANAGER & COUNCIL ASSIGNMENTS] BY MYSELF, THE CITY MANAGER OR COUNCIL, ALYSSA. SO, UM, THIS IS ABOUT THE SEDONA LIBRARY, UH, THE COMMUNITY LIBRARY, I SHOULD SAY, OF SEDONA LIBRARY. UM, THE FRIENDS OF THE SEDONA LIBRARY ARE HOLDING THEIR ANNUAL MEMBERSHIP DRIVE. MEMBERSHIPS RUN FROM THE CALENDAR YEAR, AND THE CATEGORIES ARE $25 FOR A SINGLE MEMBERSHIP, WHICH IS LESS THAN THE COST OF A SINGLE HARDCOVER BOOK. AND THESE DAYS, EVEN A KINDLE BOOK, UM, DEPENDING IF IT'S NEW, UH, $45 FOR A FAMILY, $65 FOR A SPONSORSHIP, AND THEY WILL GO UP FROM THERE. MEMBERS OF THE FRIENDS RECEIVE 10% OFF ALL THE REGULARLY PRICED PURCHASES. THE BOOKSTORE IS RATHER AMAZING. UM, IT IS GOT PRETTY MUCH EVERY GENRE THAT YOU CAN POSSIBLY IMAGINE IN THERE. UH, THEY HAVE A HUGE SELECTION, FANTASTIC PRICES, AND THEY NOW HAVE THIS NEW ROOM CALLED THE COLLECTOR'S CORNER THAT ARE SPECIALTY FIRST EDITION AND RARE BOOKS, UM, THAT ARE ALSO INCLUDED. AND THEY PUT SOME COMFY CHAIRS IN THERE TOO, IF YOU WANNA GO IN AND TAKE A LOOK AT THEM. THE MEMBERSHIPS ARE TAX DEDUCTIBLE, AND YOU CAN JOIN@SEDONAUSEBOOKS.ORG, UM, ON THE LIBRARY WEBSITE, COMMUNITY LIBRARY SEDONA.ORG. OR YOU CAN STOP IN SHOP, JOIN AND GET A DISCOUNT RIGHT AT THAT TIME. THE FRIENDS, UM, HAVE A HUNDRED THOUSAND DOLLARS ANNUAL COMMITMENT TO THE LIBRARY, AND THEY FUND SEVERAL SPECIAL PROGRAMS ON BEHALF OF THE LIBRARY. AND FOR THOSE OF YOU WHO HAVE NOT BEEN OVER TO THE LIBRARY RECENTLY ON THE, UM, WAS IT THE, I THINK IT WAS THE 6TH OF JANUARY AND IT RUNS THROUGH MARCH 1ST, THERE'S THE 29TH ANNUAL QUILT SHOW. UM, THE QUILTS ARE AMAZING. IF YOU HAVEN'T BEEN, YOU REALLY NEED TO GO AND TAKE A LOOK AT THEM. I HAVE MY FAVORITE. I WON'T TELL YOU WHAT IT IS. UM, IT'S AN INCREDIBLE DISPLAY. THERE'S OVER 60 QUILTS, UH, AND THE OPENING [00:15:01] CEREMONY WAS LAST, UH, WEEK ON THE, UH, EIGHTH. SO MANY, MANY THINGS GOING ON AT OUR LIBRARY. THEY'VE ALSO DONE SOME AMAZING CHANGES ON THE INSIDE. YOU SHOULD STOP BY IF YOU HAVEN'T BEEN LATELY. TAKE A LOOK. AND FOR THOSE OF YOU WHO ARE LOOKING FOR A QUIET SPACE, THEY HAVE THING ONE AND THING TWO NOW AVAILABLE, WHICH ARE, UM, THEY LOOK LIKE FOAM BOOTHS. QUITE HONESTLY. PLEASE DON'T GO IN AND CHANGE CLOTHES THOUGH, AND NO MATTER HOW SUPER YOU ARE, BUT THEY ARE, UM, ACTUALLY SILENT. SO YOU CAN BE IN THERE AND HAVE PART OF A ZOOM CONVERSATION OR JUST QUIET, UM, INSTEAD OF ANY NOISE THAT'S HAPPENING IN THE LIBRARY. SO CHECK OUT OUR NEW COMMUNITY LIBRARY AT SEDONA. UH, BRIAN FIRST AND THE VICE MAYOR. I'LL DEFER FOR A MOMENT. OKAY, VICE MAYOR. UH, THIS WEEKEND IS A WEEKEND OF SERVICE. IT'S ACTUALLY JANUARY 16TH THROUGH THE 20TH. I LEFT SOME FLYERS AT THE FRONT THERE, BUT, UH, VOLUNTEER SEDONA, WHICH IS, UH, ACTUALLY IT'S VOLUNTEER SEDONA. AND THE VERDE VALLEY IS A NEW ORGANIZATION DESIGNED TO ENCOURAGE VOLUNTEERISM. SO STARTING ON ON THURSDAY, OUR OWN SEDONA PARKS AND REC IS GONNA HAVE A PARK CLEANUP AT POSSE GROUNDS PARK, AND THEN A WHOLE VARIETY OF NONPROFITS, INCLUDING SEDONA AREA HOMELESS ALLIANCE, MANZANITA OUTREACH, OAK CREEK WATERSHED COUNCIL, VERDE VALLEY, HABITAT FOR HUMANITY KEEP SEDONA, BEAUTIFUL HUMANE SOCIETY OF SEDONA AND FRIENDS OF THE VERDE RIVER ARE ALL HAVING EVENTS OVER THIS WEEKEND. SO IF ANY OF THESE, UH, ARE YOUR FAVORITE ORGANIZATIONS OR YOU WANNA GET OUT AND HELP, PLEASE DO SO. YOU NEED TO SIGN UP AND, UH, ALL OF THAT INFORMATION WITH A QR CODE IS AT THE FRONT DESK. THANK YOU, MAYOR. OKAY, BRIAN. THANK YOU, MAYOR. UH, LAST WEEK I HAD THE OPPORTUNITY TO PARTICIPATE IN THE NACO, UH, COUNCIL ON AGING MEETING. AND, UH, PART OF THE UPDATE THERE IS THAT WITH THE FEDERAL, UH, CONTINUING RESOLUTIONS TO FUND THE GOVERNMENT, UH, THEY INTENTIONALLY, UH, LEFT OUT THE REAUTHORIZATION OF THE OLDER AMERICANS ACT, WHICH HAS BEEN IN PLACE SINCE 1965. SO THAT PUTS, UH, AT RISK CONSIDERABLE ONGOING FUNDING FOR PROGRAMS FOR, UH, THE AGED IN, UH, NORTHERN ARIZONA. ADDITIONALLY, THE STATE LEGISLATURE HAS COMMUNICATED TO NACOG THAT THEY'RE VERY SENSITIVE ABOUT QUOTABLE TERMS BEING USED, SUCH AS A FUNDING CLIFF, UM, WHICH IS, UH, WHAT THEY'RE LOOKING AT, UH, FACING ACTUALLY. SO THE TRUTH HURTS. AND, YOU KNOW, BEING THE MOST QUOTABLE PERSON ON COUNCIL, I THOUGHT I MIGHT ADD THAT THAT WAS WHAT, UM, WAS BEING COACHED TO, UH, NAAG WAS DON'T CALL IT A FUNDING CLIFF, EVEN THOUGH THAT'S EXACTLY WHAT IT IS. SO, UH, THE GOOD WORK CONTINUES WITH THE ORGANIZATION, BUT RIGHT NOW THERE'S A LOT OF RISK FOR FUNDING FOR PROGRAMS FOR SENIORS, UH, HEADING INTO THIS YEAR. THANK YOU, MAYOR. OKAY. AND MELISSA, WHAT WAS THE NAME OF THE LIBRARY? NOW THE NEW NAME OF OUR LIBRARY, LET'S SEE IF I GET THIS RIGHT. THE COMMUNITY LIBRARY. SEDONA? CORRECT. FOR THOSE WHO DON'T KNOW, COMMUNITY LIBRARY. COMMUNITY LIBRARY. SEDONA, THERE'S NO, NO COMMUNITY LIBRARY. THERE'S NO COMMUNITY. SEDONA. YEAH, THERE'S NO THERE. OKAY. THERE IS NO THE RIGHT FOR THOSE THAT DON'T KNOW. RIGHT. THE LIBRARY RECENTLY HAS CHANGED THEIR NAME TO MAKE IT MORE WELCOMING TO THE COMMUNITY. JUST, JUST SO YOU KNOW, YOU CAN GET LOVELY STICKERS WITH THE NEW NAMES THAT YOU CAN PUT ON YOUR WATER BOTTLES. JUST, YOU KNOW, IN CASE YOU WANT SOME RIGHT. NEED HELP REMEMBERING. THANK YOU. UH, OKAY. SO, UH, A COUPLE OF THINGS I'VE DONE IN THE PAST MONTH SINCE WE'VE HAD OUR LAST MEETING. UH, A FEW WEEKS AGO, I ATTENDED THE, UH, JUBILEE 2025 OF THE CHAPEL OF THE HOLY CROSS. IT WAS AN AMAZING EVENT AT THE CHAPEL. THEY DON'T HOLD A LOT OF EVENTS THERE. AND THIS WAS ONE THAT THEY HELD AND IT WAS QUITE IMPRESSIVE. UM, UH, THE VICE MAYOR, CITY MANAGER, CITY ATTORNEY, AND OUR NEW LOBBYIST, KATHY SENSEMAN, UH, AND MYSELF MET WITH OUR NEW STATE LEGISLATORS, OR MANY OF THE STATE LEGISLATORS, SOME KNEW TO DISCUSS OUR, UH, EMERGENCY HOUSING RESOLUTION. THAT WENT REALLY WELL. UH, I PRESENTED, UH, OUR, UH, HOUSING RESOLUTION AT OUR GAMMA MEETING, WHICH INCLUDED 22 OF THE MAYORS IN THE NORTHERN REGION. UH, AND I'M STILL REACHING OUT TO OTHERS THROUGHOUT THE STATE. UH, THERE'S A LOT OF SUPPORT FOR THAT. OUR, I, UH, LOBBYIST, KATHY SENSEMAN HAD [00:20:01] A TEAMS MEETING WITH A, A LEGISLATIVE ADVOCATE FOR, UH, AND, AND PEOPLE ACROSS THE STATE TO DISCUSS, AGAIN, A HOUSING RESOLUTION. THAT WAS A SEPARATE MEETING THAT SHE HAD. UH, THE VICE MAYOR AND I MET WITH A, UH, OUR, UH, LIAISON FOR A NEW, UH, SENATOR FINCHEM, WHO SEEMS TO BE A VERY BIG ADVOCATE FOR, UH, LISTENING TO THE ISSUES AND SUPPORTING MAJOR CHANGES FOR SHORT TERM RENTALS. WE'LL SEE WHAT, WHAT FRUIT THAT BEARS. UH, WE HAD A MEETING WITH SENATOR MARK KELLY'S, REPRESENTATIVE OF JUDY SCHUL, THE VICE MAYOR AND THE CITY MANAGER. AND I MET WITH HER JUST LAST WEEK. THAT ALSO PROVED VERY, UH, FRUITFUL. AND OH, UH, LAST WEEK I MET WITH DAVID KEY, OUR NEW, UH, CEO OF THE CHAMBER OF COMMERCE. AND YOU ALL GET TO KNOW HI DAVID AS HE MOVES AROUND THE CITY AND GETS TO KNOW EVERYONE. BUT I THINK YOU'LL BE AS IMPRESSED AS I WAS. UH, LET'S SEE, SOMETHING VERY UNIQUE FOR THE VERDE VALLEY. I WAS CONTACTED BY A NEW COUNTY SUPERVISOR, NIKKI CHECK, AND SHE'S GOING TO BE CONTINUOUSLY REACHING OUT TO ALL FIVE MAYORS, UH, IN THE VERDE VALLEY TO HAVE A GOOD REPRESENTATION. I HAVE A MEETING WITH HER, UH, ABOUT A WEEK AND A HALF OR SO. SO I WAS REALLY IMPRESSED TO REACH, UH, HER AND BE, HAVE AN INTEREST IN, UH, RECONNECTING WITH THE COUNTY OF YAVAPAI. THAT'S ABOUT IT FOR ME. AND WE WILL THEN GO TO, PARDON ME, MAYOR. YES, I HAVE A COUPLE OF QUICK UPDATES IF OH, GOOD. OKAY. IF THE COUNCIL IS FINISHED. UH, WE ARE THANK YOU, MAYOR AND COUNCIL. UM, I JUST WANTED TO MENTION TWO THINGS. ONE IS THAT OUR COMMUNITY SURVEY REGARDING THE WESTERN GATEWAY, UH, MASTER PLAN IS OPEN. WE'VE RECEIVED OVER 700 RESPONSES AT THIS POINT, BUT I WANNA MAKE SURE PEOPLE KNOW THAT IT'S OPEN UNTIL JANUARY 19TH AND ENCOURAGE PEOPLE TO, UM, SUBMIT THEIR RESPONSES. UM, THE SECOND THING I WANTED TO MENTION IS, OF COURSE, AS YOU, UH, TALKED ABOUT DURING THE MOMENT OF SILENCE IS, UM, THE THOUGHTS AND PERS WE HAVE FOR THE LA AREA AND ALSO WHAT THAT MEANS FOR US HERE. AND I WANTED TO LET THE COUNCIL KNOW THAT, UM, THE SEDONA FIRE DEPARTMENT HAD ALREADY BEEN PLANNING, UM, THEIR COMMUNITY PREPAREDNESS MEETINGS IN ADVANCE OF OUR LOCAL WILDFIRE SEASON. UM, AND THAT'S LIKELY THE BEGINNING OF MARCH. AND WE'VE, UM, BEEN TALKING WITH THEM ABOUT EXPANDING THAT OUT TO INCLUDE ADDITIONAL AGENCIES AND HAVE A PANEL FORMAT WHERE PEOPLE CAN ASK QUESTIONS. UM, SO STAFFS, UH, JUST WANTED TO LET YOU KNOW THAT THAT'S IN THE WORKS. AND SO ONCE WE HAVE THE DATE AND THE LOCATION FINALIZED, WE'LL MAKE SURE WE ADVERTISE THAT WELL, AND WE REALLY HOPE THE COMMUNITY TURNS OUT IT'S A REALLY IMPORTANT TOPIC. THANK YOU. THANK YOU. OKAY. THANK YOU ANNETTE. OKAY, SO ITEM SIX [6. PUBLIC FORUM] IS PUBLIC FORUM. UH, IF ANYONE IS INTERESTED IN SPEAKING ON ITEMS, NOT ON THE AGENDA, THIS WOULD BE THE OPPORTUNITY. WE HAVE ONE CARD FROM TYLER CARSON, IF YOU'LL STEP UP TO THE MICROPHONE. TYLER. OKAY. TYLER, IN CASE YOU HAVEN'T BEEN HERE BEFORE, YOU HAVE A CLOCK OVER HERE. GIVES YOU THREE MINUTES. YOU HAVE THAT TIME TO, UH, TO SPEAK. SHOULD YOU RUN OUT OF TIME, YOU CAN FINISH YOUR SENTENCE, BUT THAT'S WHEN THE TIME WILL STOP. OKAY. THANK YOU EVERYONE. OKAY. MY NAME IS TYLER CARSON. I LIVE HERE IN SEDONA. YOU MIGHT RECOGNIZE ME FROM CBSI WAS ON NATIONAL TELEVISION TWICE IN THE LAST MONTH. THERE WAS A FEATURE ON MY MUSIC THAT, UH, IS CALLED FIDDLER ON THE ROCK. THAT'S MY NAME THAT HAS DEVELOPED SINCE I'VE BEEN LIVING HERE. AND SINCE THAT, UH, CBS AIRED, I DO A WEEKLY SHOW IN SEDONA. IT'S BEEN SOLD OUT AND THAT'S WONDERFUL. AND YOU MIGHT THINK THAT I WANT TO HOG THAT, BUT I THINK IT'S THE OPPOSITE. I THINK THAT THE MORE MUSICIANS WE HAVE IN TOWN, THE MORE WE'RE GOING TO SEE MUSIC AS A FORCE IN OUR CULTURE. AND, UH, IN MUSIC INDUSTRY ISN'T A DESPERATE PLACE FOR THAT. WE NEED A PLACE WHERE ART MUSIC CAN LIVE AND CAN THRIVE. AND SEDONA HAS AN INCREDIBLE OPPORTUNITY FOR THAT. I'VE PLAYED IN MUSIC AND NATURE FOR SO MANY YEARS HERE IN SEDONA AND WATCH PEOPLE COME UP TO ME AFTER SHOWS AND IN TEARS SAYING HOW MUCH THIS HAS MEANT TO THEM BECAUSE PEOPLE COME TO SEDONA FOR HEALING AND MUSIC FACILITATES THAT. WHEN WE STAND AND LOOK AT THIS AT THE RED ROCKS, WE TEND TO GET INTERESTED FOR ABOUT 10 SECONDS. AND OUR MONKEY BRAIN GOES, OH, WELL WHAT ELSE? WE NEED SOMETHING TO COALESCE OUR INTEREST. AND THE AMPHITHEATER THAT IS IN THE CULTURAL PARK IS A WORLD CLASS OPPORTUNITY FOR MAKING THAT KIND OF DIFFERENCE. [00:25:03] SEDONA IS A CITY WHERE TOURISTS OR VISITORS BECOME THE AUDIENCE FOR MUSICIANS. SO INSTEAD OF US DOING THE TOURING, THE TOURISTS CAN DO IT FOR US. THAT OPENS UP AN OPPORTUNITY FOR MUSICIANS LIKE YOU WOULD NOT BELIEVE. YOU'LL HAVE MUSICIANS THAT WILL BLOW YOUR MIND AND ALL OF THE VISITORS, AND THEY MIGHT EVEN LIVE HERE BECAUSE IT'S AN OPPORTUNITY UNLIKE ANY OTHER. NOW I KNOW FROM STORIES THAT THE AMPHITHEATER HAS HAD SOME CHALLENGES, BUT THE WORLD HAS CHANGED A LOT SINCE THAT TIME. I DON'T THINK WE NEED 5,000 PEOPLE SITTING THERE. I THINK THAT WE CAN ADJUST THAT SIZE AND WE CAN OVERCOME ANY DIFFICULTIES WITH TECHNOLOGY. FOR EXAMPLE, THERE'S A COMPANY IN TOWN HERE THAT DOES, UH, WIRELESS HEADPHONES. SO YOU CAN ACTUALLY HAVE BETTER SOUND THAN ANY SOUND SYSTEM IN THE WORLD AND HAVE NO PROBLEMS WITH NEIGHBORHOODS. SO IT'S AMAZING THIS VISION THAT IS THIS COMMUNITY COMPLEX WHERE WE CAN HAVE GATHERINGS, WE CAN HAVE PERFORMANCES, WE CAN HAVE LOCALS, WE CAN HAVE INTERNATIONAL, WE CAN HAVE EXTRAORDINARY AIRBNB THAT CAN BE AT THE TOP PRICE POINT BECAUSE PEOPLE ARE COMING FOR A CONCERT. WE CAN RELIEVE, UM, THE PRESSURE FROM THE RESIDENTS IN OUR TOWN. WE CAN BUILD IN THE DELLS, WHICH AS A RESIDENT, I WOULD LOVE TO LIVE THERE. 'CAUSE THEN I CAN SKIP THE TRAFFIC. I CAN GO TO COTTONWOOD. AND I THINK WE CAN BUILD THAT, I'M GUESSING FOR THE SAME AMOUNT AS A FOUNDATION IN THOSE RED ROCKS. FROM WHAT I'VE SEEN, IT COSTS A LOT OF MONEY TO BREAK UP THOSE ROCKS. SO I REALLY INVEST, UH, INVITE YOU ALL TO REALLY CONSIDER HOW WE CAN CREATIVELY MAKE ALL OF THESE VISIONS REAL AND HAPPEN. THANK YOU VERY MUCH. ONE SECOND LEFT, . SO IT'S NOT OKAY. OKAY, THANK YOU. OKAY. UH, BRANDON, I CAN'T READ YOUR LAST NAME, BUT THAT'S OKAY. YOU'RE GONNA SAY IT WHEN YOU COME UP, SO YOU'LL HAVE THREE MINUTES ALSO. PERFECT. YOU CLOCK ENDS AND YOU CAN FINISH YOUR SENTENCE AT THAT TIME. AWESOME. OKAY. START WITH YOUR NAME AND CITY OF RESIDENCE. MY NAME'S BRANDON ST. STRELLA. I LIVE HERE IN SEDONA. I'VE BEEN A RESIDENT FOR THE PAST EIGHT YEARS. I'M ACTUALLY, UH, THE ONE WHO, UH, CO-OWNS THE COMPANY WITH MY WIFE SEDONA DANCES. AND WE'VE, UH, RUN, UH, BASICALLY A HEADPHONE BUSINESS THAT HELPS BROADCAST THE SOUND. AND I MEAN, WE CURRENTLY HAVE A, A 350 HEADPHONES THAT WE'VE RENTED OUT TO WEDDINGS AND OTHER VENUES SO THAT YOU CAN BASICALLY ELIMINATE THE NOISE ORDINANCE, THE NOISE, THE SOUND. I MEAN IT LITERALLY JUST HAVE HEADPHONES ON. IT IS DEAD QUIET IN A ROOM WHEN YOU'RE LISTENING TO THIS. AND IT'S FUNNY 'CAUSE YOU'LL SEE A BUNCH OF PEOPLE DANCING AND WE LOVE, WELL, A LOT OF PEOPLE DO WHAT THEY CALL SILENT DISCO. AND IT'S DANCING BASICALLY AROUND IN A ROOM AND YOU GET THREE STATIONS. BUT WITH THAT TECHNOLOGY, YOU COULD BASICALLY SOLVE A LOT OF THE ISSUES THIS TOWN IS RUNNING INTO WITH THE, THE SOUND ORDINANCES WE'RE HAVING. AND THAT'S ONE OF THE REASONS I'M HERE IS BECAUSE TYLER RECOMMENDED I COME AND TALK TO YOU GUYS MORE ABOUT THAT BECAUSE IT'S A GREAT WAY TO SOLVE THE PROBLEM. I MEAN, IT'S, IT'S SOMETHING THAT, I MEAN, HONESTLY, WHEN YOU LOOK AT BUYING MASSIVE SPEAKERS, IT'S ACTUALLY CHEAPER TO BUY THE HEADPHONES. SO, I MEAN, YOU'LL, YOU'D EVEN SAVE MONEY AND, AND CUT DOWN ON THE NOISE. AND I THINK IT'S A, A PHENOMENAL WAY. I ALSO THINK THE CULTURAL PARK NEEDS, NEEDS TO BE RENOVATED, NEEDS TO BE USED. IN ADDITION TO SEDONA DANCES, MY WIFE IS THE FOUNDER OF SEDONA DANCE PROJECT, AND THAT OVER THE PAST THREE YEARS HAS BROUGHT MANY PEOPLE FROM OUTSIDE OF SEDONA TO COME DANCE. BUT THE BIGGEST PART OF WHAT MY WIFE IS DOING IS CREATING OPPORTUNITIES FOR LOCALS TO DANCE. AND NOT ONLY THAT, SHE'S PART OF THE SEDONA DANCE ACADEMY, WHICH HAS OVER 120 CHILDREN THAT ALSO DANCE. SO WE NEED PERFORMANCE SPACES. WE ARE LOOKING FOR PERFORMANCE SPACES. AND THOSE SPACES WE'RE HOPING CONTINUE TO GROW. I'M LIKE, WE FINALLY ARE USING, UH, THE SEDONA PERFORMING ARTS CENTER IN MAY FOR THE DANCE, THE YEARLY DANCE FESTIVAL. AND WE'RE HOPING TO START DOING ONE OR TWO MORE EVENTS PER YEAR AS, UH, THIS CONTINUES TO EXPAND. SO ONE OF THE BIGGEST THINGS WE NEED IS JUST A SPACE WHERE WE CAN DO THIS. AND, AND MY WIFE HAS ACTUALLY ALREADY USED OUR HEADPHONES TO DO A PERFORMANCE AT, UH, THE HUB HERE IN SEDONA, WHICH IS ANOTHER GREAT PLACE FOR US TO DO PERFORMANCES AND, AND, AND MAKING IT AFFORDABLE TO THE PEOPLE IN THE COMMUNITY SO THAT WE CAN THEN MAKE IT AFFORDABLE TO THE PEOPLE IN THE COMMUNITY IS ONE OF MY BIGGEST GOALS AS WELL. SO THAT'S PRETTY MUCH, I THINK I HAVE 12 SECONDS. UM, ALL I HAVE TO SAY. THANK YOU. THANK YOU. OKAY. IS THERE ANYBODY ELSE [00:30:01] THAT WISHES TO SPEAK? NOW IS THE TIME. OKAY. THEN WE'RE GOING TO CLOSE THE PUBLIC FORUM AND GO ON TO ITEM [7.a. Recognition of Police Department volunteer Ray Schwartz.] SEVEN. PROCLAMATION, RECOGNITIONS AND AWARDS. THIS IS AN OPPORTUNITY GO, WILL BE ABLE TO RECOGNIZE RAY SCHWARZ. RAY, WOULD YOU STEP UP? I TOOK IT HAPPENING TO, ALL RIGHT, THERE WE GO. OKAY. SO MANY OF THE PEOPLE HERE WOULD KNOW THIS GENTLEMAN. MOST HERE KNOW RAY FROM THE VOLUNTEER POLICE DEPARTMENT THAT WE HAVE. HE'S BEEN A VOLUNTEER FOR MANY YEARS, AND I'LL GET TO THAT IN A, IN A MOMENT. BUT WE HAVE OTHERS HERE WHO WOULD KNOW RAY FROM OUR VISITOR CENTER. AND IT, RAY KNOWS NO LIMITS TO WHERE HE WANTS TO VOLUNTEER HIS TIME. SO KNOWN AMONG US IN THE C POLICE AS MAJOR RAY, I DIDN'T KNOW THAT. I LEARNED THAT THE OTHER DAY. RAY SCHWARZ BEGAN VOLUNTEERING WITH THEONA POLICE DEPARTMENT IN NOVEMBER OF 2008. RIGHT? I KNOW, RIGHT? RIGHT. IS RETIRING THIS MONTH WITH 16 YEARS AND GET THIS 5,300 HOURS OF SERVICE. WE OWE YOU A DEBT. RAY WAS INSPIRED TO BEGIN VOLUNTEERING WITH THE SEDONA POLICE DEPARTMENT BECAUSE HE, UH, GREATLY ADMIRED THE WORK THAT THE POLICE DEPARTMENT DOES. AND HE WANTED TO SERVE THE COMMUNITY WHERE HE RESIDED SIDED. RAY SAID AT THE TIME THAT HE, HE HAS SPENT WITH THE ELLA POLICE DEPARTMENT HAS BEEN A TREMENDOUS HONOR FOR HIM AND THE PEOPLE HE HAS MET AND WORKED WITH, WHICH IS SOMETHING HE WILL ALWAYS TREASURE. AND I KNOW THAT FEELING. IN ADDITION TO HIS INCREDIBLE LEVEL OF DEDICATION TO THE POLICE DEPARTMENT, RAY ALSO VOLUNTEERS WITH OTHER ORGANIZATIONS IN OUR CITY, INCLUDING THE VERDE VALLEY CAREGIVERS AND THE SEDONA INTERNATIONAL FILM FESTIVAL. RAY HAS ALSO BEEN AN ACTIVE VOLUNTEER OF THE SEDONA CHAMBER OF COMMERCE VISITOR CENTER, AS I SAID BEFORE, FOR OVER 10 YEARS. THAT'S A LONG TIME. HE GREETS THOSE WHO WALK IN THE DOOR WITH A HEARTY WELCOME TO SEDONA, AND HOW CAN I HELP YOU? SO THAT'S THE MESSAGE THAT WE WANT ALL OF OUR GUESTS WHO COME TO SEDONA TO BE WELCOME WITH WHERE HE IS KINDHEARTED KNOWLEDGEABLE AND LOVES TO SHARE A LAUGH WITH EVERYONE HE MEETS. AND HE MAKES OTHERS AROUND HIM FEEL AT EASE. THAT'S VERY TRUE FOR THOSE COUNCIL MEMBERS THAT HAVE STOPPED AT THE VISIT CENTER AND GUESTS HERE AND VISITORS, YOU, YOU WOULD SEE HIM WITH HIS VAST KNOWLEDGE OF OUR CITY, WHICH IS TAKES YEARS AND YEARS IN WHICH TO REQUIRE THAT KNOWLEDGE. SO RAY IS SHARING, UH, THE EXACT MESSAGE THAT WE HOPE ALL OF OUR VISITORS WILL ADHERE TO. TO SAY THAT RAY WILL BE MISSED AT THE CITY IS A HUGE UNDERSTATEMENT. WE WISH HIM CONGRATULATIONS ON HIS RETIREMENT AND WANT TO THANK HIM AND HAVE NOTHING BUT THE BEST IN THE FUTURE. THANK YOU SO MUCH. YOU'RE VERY WELCOME. JUST A FEW. JUST A FEW. NO HARD TO CLOCK . NO, I JUST WANNA THANK EVERYBODY HERE. THIS IS UNBELIEVABLE. I NEVER COULD HAVE DREAMED THAT THIS WOULD BE THE, THE KIND OF GOING AWAY I WOULD EVER GET FROM, UH, THE TIME THAT I'VE BEEN ABLE TO SPEND HERE. AND THE WHOLE REASON WAS TO HELP SERVE THE COMMUNITY. AND I HAD THE OPPORTUNITY BECAUSE OF THE POLICE DEPARTMENT TO BE ABLE TO DO THAT. SO THIS HAS JUST BEEN AMAZING. AND THE PEOPLE THAT I'VE MET UNREAL. IT IS, THEY'RE THEY'RE JUST FANTASTIC. AND THAT'S WHAT IT'S ALL ABOUT, REALLY. THANK YOU. THANK YOU. JUST ONE. CAN WE HAVE SOME OF THE POLICE OFFICERS OR ALL THE POLICE OFFICERS RAISE SECOND FAMILY, AS I USED TO CALL IT. WANNA COME UP AND TAKE SOME PHOTOS? I WON'T TOO LONG. THIS IS LIKE A SECOND FAMILY. THERE YOU GO. [00:35:13] CHIEF MAN. RIGHT HERE. RIGHT BEHIND. I GOT YOU. RIGHT BEHIND EVERYBODY SEEMS TO HAVE, WE ONLY HAVE A COUPLE HOURS IN THE MEETING, YOU KNOW, QUICKLY. QUICKLY. OKAY. BIG SMILES. ONE, TWO, THE CAMERA. SORRY. OKAY. ALL RIGHT. SCOOCH IN ONE MORE STEP. GOOD ENOUGH. AND 1, 2, 3. AWESOME. I FEEL LIKE I SHOULD COME OVER AND GIVE YOU BOOKS. . THAT'S NICE. VERY NICE. A LOT OF WORK THAT HE DOES. HIM AND HIS WIFE BOTH. OKAY. ITEM EIGHT, [8.a. AB 3071 Public Hearing/discussion/ possible action regarding approval of a Resolution adopting the January 14, 2025 Development Impact Fee Report, and Fees effective March 31, 2025.] REGULAR BUSINESS. A AB 30, 30 71 PUBLIC HEARING DISCUSSION, POSSIBLE ACTION REGARDING APPROVAL OF A RESOLUTION ADOPTING THE JANUARY 14TH, 2025 DEVELOPMENT IMPACT, FEE REPORT, AND FEES EFFECTIVE MARCH 31ST, 2025. THAT WOULD BE ANNETTE. YES. THANK YOU MAYOR. UM, WELL THIS IS THE LAST STEP IN THE PROCESS FOR ADOPTING THESE FEES. UM, YOU HAVE DISCUSSED THEM AT LENGTH AND THIS, UH, RESOLUTION REPRESENTS THE DIRECTION THAT STAFF RECEIVED FROM COUNSEL AT YOUR LAST DISCUSSION ON THIS ITEM, WHICH WAS, UH, I BELIEVE IN DECEMBER THE 20 DECEMBER 10TH. UM, SO WE'VE DONE THE PROPER NOTICING AND AT THIS POINT, UM, I JUST LOOK TO YOU FOR YOUR ACTION TO ADOPT THE RESOLUTION TO MAKE THE FEES EFFECTIVE. AND WE'LL UPDATE THE CONSOLIDATED FEE SCHEDULE. UH, BARBARA AND I CAN ANSWER ANY LAST QUESTIONS YOU MAY HAVE. UM, BUT NOTHING HAS CHANGED IN THE PACKET SINCE THE LAST MEETING ON MY, TO MY LEFT, KATHY? YES. UM, SO LAST TIME THAT THIS WAS IN FRONT OF US, I VOTED AGAINST MOVING IT FORWARD TO THIS POINT. AND I JUST WANTED TO REITERATE MY CONCERNS THAT THIS DOESN'T DO ANYTHING FOR, UM, INDIVIDUAL HOMES. UH, YOU KNOW, SO THAT WE, WE KEEP TALKING ABOUT NEEDING HOMES ARE DEVELOPED AT EVERY LEVEL FROM MULTIFAMILY HOUSING TO SINGLE FAMILY HOUSING AT THE TOP END OF THE FINANCIAL SPECTRUM TO THE LOWER END OF THE FINANCIAL SPECTRUM. UM, AND I THINK THAT HAVING, UH, THAT THIS MOVING FORWARD WITH THIS SENDS THE WRONG MESSAGE ABOUT WHAT WE'RE TRYING TO DO TO MAKE HOUSING AFFORDABLE AT EVERY LEVEL HERE IN SEDONA. SO, UM, IT'S MY INTENTION TO VOTE AGAINST THIS WHEN WE COME TO IT. SO I JUST WANTED TO SAY THAT TO MY LEFT, UH, TO MY RIGHT, RATHER. OKAY. I HAVE A QUESTION FOR ANNETTE. SO THERE'S NOTHING FROM THAT, THERE'S NOTHING THAT PRECLUDES US FROM, IF WE HAVE A DEVELOPMENT APPLICATION FOR WORKFORCE HOUSING, AFFORDABLE HOUSING OR SOMETHING THAT, UH, NEEDS TO BE REVIEWED, WE CAN MAKE INDIVIDUAL CHANGES. CAN WE NOT? DO YOU WANNA ANSWER? NO. SO, SO MAYOR AND COUNCIL, THE, THE ONLY WAY TO, TO DO SOMETHING OTHER THAN THE ADOPTED DEVELOPMENT IMPACT FEE SCHEDULE WOULD BE THROUGH DEVELOPMENT AGREEMENT. AND IF THEY'RE PROVIDING CERTAIN PUBLIC BENEFITS, UH, THEN THE CITY COULD, UH, PAY THE DIFF, UH, DEVELOPMENT IMPACT FEES ON BEHALF OF THE DEVELOPER. SO THERE IS THAT OPPORTUNITY, UM, BUT IT'S NOT SOMETHING THAT WE COULD JUST WAIVE OR YES. OR NOT COLLECT. IT WILL BE COLLECTED. EITHER THE CITY WILL PAY IT OR THE DEVELOPER WILL PAY IT, UM, IN EXCHANGE FOR CERTAIN, CERTAIN, UM, IMPROVEMENTS OR PUBLIC INFRASTRUCTURE, ET CETERA. THE, THE CITY THROUGH A DEVELOPMENT, THE CITY COUNCIL THROUGH A DEVELOPMENT, UH, DEVELOPMENT AGREEMENT COULD, UH, COULD ACCOMMODATE THOSE TYPES OF RIGHT. AND THAT'S WHAT I DID MEAN. BUT THERE IS SOME LEEWAY [00:40:01] WITH THOSE DISCUSSIONS. SO THAT'S WHAT I WAS CONCERNED ABOUT. OKAY. UH, ANY OTHER QUESTIONS? DO I HEAR A MOTION? IT'S A PUBLIC HEARING. OH YES. YOU KNOW, IT'S A NEW YEAR. I'M SORRY. DON'T GIVE, THANK YOU FOR CATCHING THAT. YES. IT'S PUBLIC HEARING. YES. OKAY. UH, DO WE HAVE ANY CARDS FOR THIS ITEM? NO, MAYOR. ALRIGHT, SO WE'RE GONNA OPEN THE PUBLIC HEARING. I SEE SOMEBODY RUNNING UP. YOU'RE NOT FOR THIS ITEM, ARE YOU? NO. OKAY. WE'LL CLOSE THE PUBLIC HEARING. JUST WANNA BE SURE. OKAY. NOW, DO I HAVE A MOTION, MELISSA? SURE. I MOVE TO APPROVE RESOLUTION NUMBER 2025 DASH 0 1 0 1, ADOPTING THE JANUARY 14TH, 2025 DEVELOPMENT IMPACT FEE REPORT, AND FEES EFFECTIVE MARCH 31ST, 2025. SECOND. OKAY, WE HAVE A SECOND. ANY DISCUSSION? LAST MINUTE DISCUSSION, VICE MAYOR. I WOULD JUST LIKE TO SAY ON THE RECORD, I HAVE OPPOSED THIS FROM THE BEGINNING. I INTEND TO VOTE AGAINST IT NOW, AND I JUST, I THINK WE'RE SO AFRAID OF SHORT TERM RENTALS THAT WE'VE NOW CLOUDED OUR VISION SO THAT EVERY HOUSE THAT'S BEING DEVELOPED, WE ASSUME IS GONNA BE A SHORT TERM RENTAL. AND I THINK THAT YES, FOR MULTIFAMILY HOUSING, WE POTENTIALLY HAVE A DIGGER. IT NEEDS A LOT OF WORK AND REVISION, BUT THAT COULD HANDLE, UH, A ENCOURAGE THAT DEVELOPMENT. BUT NOW WE'RE REALLY GONNA PUSH SINGLE FAMILY HOMEOWNERS. WE'RE GOING TO MAKE IT EVEN MORE EXPENSIVE TO BUILD A HOUSE IN THIS TOWN, AND WE'RE GONNA DISCOURAGE PEOPLE FROM MOVING HERE WHO WANT TO LIVE HERE. AND SO THAT'S ONE OF THE REASONS WHY I'M AGAINST IT. WE ALREADY ARE THE HIGHEST IN THE COUNTY, AND NOW WE WILL BE EVEN HIGHER. SO PEOPLE WILL NOT WANT TO LIVE HERE. AND WE DO HAVE LAND FOR SALE. PEOPLE CAN BUILD HOUSES AND LIVE IN THEM. OKAY. ANY OTHER DISCUSSION? OKAY. ALL IN FAVOR SAY AYE. OPPOSED? NO. NO. OKAY. FIVE TO TWO. YOU HAVE? YES. THANK YOU. OKAY. OKAY. ITEM B [8.b. AB 3168 Public Hearing/discussion/possible action regarding circulation of the annexation petition filed with the Yavapai County Recorder to continue the process for the proposed annexation of approximately 3,422 acres of land including the City’s wastewater treatment plant and neighboring City-owned property (the Dells) into the City’s jurisdictional boundaries.] 31 68, PUBLIC HEARING DISCUSSION, POSSIBLE ACTION REGARDING CIRCULATION OF THE ANNEXATION PETITION FILED WITH THE YBA COUNTY RECORDER TO CONTINUE THE PROCESS FOR, FOR THE PROPOSED TAXATION OF APPROXIMATELY 3,422 ACRES OF LAND, INCLUDING THE CITY'S WASTEWATER TREATMENT PLANT AND NEIGHBORING CITY OWNED PROPERTY, THE DELLS, UH, INTO THE CITY'S JURISDICTIONAL BOUNDARIES. THANK YOU, MR. MAYOR, VICE MAYOR AND COUNSELORS. UM, UP ON THE SCREENS, YOU HAVE THE PROPOSED ANNEXATION MAP. UM, UH, WE HAVE RE RECEIVED BACK THE INFORMATION FROM THE ARIZONA DEPARTMENT OF REVENUE AND THE COUNTY ASSESSOR'S OFFICE ABOUT THE PROPERTY, UH, IN THAT AREA. TO CONFIRM WHAT WE LARGELY SUSPECTED WITH ONE LITTLE CHANGE. I'LL, I'LL LET YOU KNOW. THE, UM, FIRST OFF, JUST TO EXPLAIN THE WHITE-ISH GRAY AREA, THE MAJORITY IS OWNED, ALL OWNED BY COCONINO COUNTY. SO THE COUNTY ASSESSOR'S OFFICE DID CONFIRM THERE'S NO PRIVATELY OWNED PROPERTY, UM, SORRY, COCONINO NATIONAL FOREST. UM, THERE IS NO PRIVATELY OWNED, UH, PROPERTY WITHIN THE PROPOSED ANNEXATION AREA. THERE ARE ONLY THREE PROPERTY OWNERS. NONE OF THEM ARE ASSESSED ANY VALUE AND THEREFORE DO NOT GET TO VOTE, UM, OR SIGN IN SUPPORT OF THE ANNEXATION. AND THAT IS THE GRAY IS THE COCONINO NATIONAL FOREST. THE RED IS ADOT, UM, THOSE TWO SECTIONS. AND THEN THE ORANGE IS YELLOW IS THE CITY OF SEDONA. UM, THERE WERE THREE, UH, PROPERTY OWNERS, UM, EITHER, UH, UH, BUSINESS, PERSONAL PROPERTY OR, OR ASSESSED CENTRALLY VALUED PROPERTY, UH, IN THE ANNEXATION AREA. AND THAT IS THE A PS POWER LINE THAT RUNS, YOU CAN JUST VAGUELY SEE IT RUNNING THROUGH HERE. UM, AND SO THEY WILL BE ONE, UM, PROPERTY OWNER THAT WILL NEED TO SIGN AND SUPPORT, UH, THE SOLAR POWER, UH, FACILITY ON CITY PROPERTY. YOU CAN'T, YOU'LL SEE IT BETTER ON THE MAP THAT'S COMING UP FOR THE PROPOSED, UM, MAINTENANCE AND TRANS MAINTENANCE AND OPERATION FACILITY FOR THE TRANSIT FACILITY. BUT, OH, THERE IT IS, IT ZOOMED IN A LITTLE BETTER. THAT'S, UH, LEASED TO EDP RENEWABLES. UM, AND THAT HAS SOME ASSESSED VALUE. AND THEN, UH, LUMEN HAS ONE, HAS SOMETHING SOMEWHERE IN THERE THAT THEY, UH, I DON'T KNOW EXACTLY THE LOCATION YET, I'M ASSUMING IT'S ON CITY PROPERTY. UM, BUT THE ASSESSED VALUE IS $7. UM, BUT THEY WILL GET TO, UH, [00:45:01] SIGN AND SUPPORT. SO OF THE THREE, WE'LL NEED TWO OF THE THREE TO SIGN AND SUPPORT. UM, AND WE WILL NEED A, SO A MAJORITY OF THE PROPERTY OWNERS AND A MAJORITY OF THE PROPERTIES, UH, ASSESS VALUE. UM, THE CITY HAS ALREADY EACH OF THOSE, UM, HAVEN'T HEARD FROM LUMEN YET 'CAUSE THAT'S A NEW ONE. UM, BUT EDP RENEWABLES AND A D UH, A PS HAD ALREADY INDICATED THAT THEY HAD NO ISSUES WITH THE ANNEXATION AND WOULD SUPPORT IT. UM, THE CITY DOES HAVE A YEAR TO COLLECT THE SIGNATURES IF COUNCIL MOVES FORWARD AT THIS POINT. AND SO, UM, IT COULD BE UP TO A YEAR TO GET THE SIGNATURES NEEDED. UH, LIKELY IN THIS CASE, SINCE THERE'S ONLY, UH, TWO OR THREE SIGNATURES NEEDED, IT'LL BE A SHORTER TIME PERIOD, AT WHICH POINT WE WOULD COME BACK TO COUNCIL, UM, WITH A PREPARED, UH, PLAN, UH, REGARDING CITY, UM, CITY SERVICES THAT PROVIDED IN THE AREA, WHICH IS PRIMARY POLICE. UM, AND THEN, UH, AN ORDINANCE, UH, ALLOWING COUNCIL TO, UM, TO FINALIZE THE, THE, UH, APPROVAL OF THE ANNEXATION, UM, AT WHICH WOULD GO INTO EFFECT 30 DAYS AFTER COUNSEL APPROVES THAT. SO THAT IS THE, SO NO SET DATE RIGHT NOW WHEN WE'LL COME BACK, WE WILL, UM, WORK WITH, UH, THOSE THREE PROPERTIES AND SEE IF THEY WANT TO SIGN IN SUPPORT OR NOT, UM, UH, PROPERTY OWNERS. AND, UH, WE'LL MOVE FROM THERE. AND THAT'S ALL I HAVE FOR THIS EVENING. UH, HAPPY TO ANSWER ANY QUESTIONS. OKAY. BRIAN ALYSSA, VICE MAYOR. UH, THIS IS NETTE AND, AND MAYBE KURT, BUT, UH, I THINK YOU HAD INDICATED YOU SPOKE WITH THE FOREST SERVICE AND HAD DISCUSSED WITH THEM AND HE TRIED TO GARNER FEEDBACK FROM THEM, ANY CONCERNS THEY HAD OR ANY ISSUES ANY MORE LIKELIHOOD OF SOMETHING HAPPENING OR ANOTHER IF WE WERE TO ANNEX THE LAND VERSUS THE COUNTY. COULD YOU TALK ABOUT THAT? SURE. THANK YOU. UM, VICE MAYOR PLU, UM, COUNCIL, UM, YES. UH, AS WE LISTENED TO THE PUBLIC INPUT YOU RECEIVED AT THE PUBLIC HEARING, THE, ON THE FIRST TIME YOU TALKED ABOUT THE ANNEXATION, UM, WE DID HEAR SOME FOLKS RAISE SOME QUESTIONS ABOUT, UM, WHAT DOES THIS MEAN FOR THE FOREST LAND THAT'S IN THE BOUNDARY? UM, SO I DID REACH OUT TO DISTRICT RANGER ALEX SCHLUTER AND ASKED HIM FOR CLARIFICATION ON THAT. AND SO THE FOREST HAS A VERY STRICT POLICY AND CRITERIA THAT GOVERN HOW, UM, ANY OF THE FOREST LAND IN THIS, UM, DISTRICT COULD GO OUT OF FOREST RAIN, UH, OWNERSHIP. SO THAT WAS THE QUESTION THAT WAS RAISED. LIKE, IF THERE'S AN ANNEXATION, DOES THAT MEAN THE FOREST SERVICE COULD SELL OFF PART OF THEIR LAND OR EXCHANGE IT, UM, AND MAKE IT PRIVATE DEVELOPABLE LAND? UM, AND ACCORDING TO THE DISTRICT RANGER, UM, THEY HAVE A VERY STRICT PROTOCOL THAT, UM, GUIDES ANY OF THOSE TYPES OF DECISIONS. AND SO, UH, WHILE IT IS TECHNICALLY POSSIBLE, IT'S HIGHLY UNLIKELY BECAUSE, UM, IT HAS TO EITHER HAVE AN ACT OF CONGRESS, UM, REQUEST, UM, OR THEY HAVE TO BE ELIGIBLE UNDER SOME VERY SPECIFIC FEDERAL ACTS TO ASK FOR AN EXCHANGE. AND EVEN IF A PROPOSAL CAME IN, UH, OUT OF ONE OF THOSE THREE THINGS, UM, THEY HAVE TO MEET SUBSTANTIAL CRITERIA THAT MAKE IT, UM, ELIGIBLE TO COME OUT OF FOREST SERVICE OWNERSHIP. AND THE CITY WOULD HAVE, UM, A SAY IN THAT BECAUSE IT HAS TO MEET A COMMUNITY NEED OR NOT MEET A NEED. UM, SO THAT WAS HIS FEEDBACK TO ME IS THAT IT'S NOT EASY TO DO. IT TAKES A REALLY LONG TIME AND THE CITY WOULD HAVE A SAY IN IT. SO I HOPE THAT'S HELPFUL. YES, THANK YOU. OKAY. KATHY, PIGGYBACKING ON THAT QUESTION, I THINK ONE OF THE CONCERNS THAT I'VE SPECIFICALLY HEARD FROM PEOPLE IS THAT THE FACT THAT THIS WOULD BE CITY LAND AND THAT THERE IS THE POTENTIAL EXTENSION OF CITY SERVICES INTO THAT AREA, THAT AS WITHIN BEING WITHIN THE CITY OF SEDONA, DOES THAT PUT ANY MORE INCENTIVE PRESSURE OR WHATEVER WORD, CHOOSE ONE, UM, YOU KNOW, THAT WOULD, REGARDING LAND, POTENTIAL LAND SWAPS THAT WOULD COME UP? SO KURT, I DON'T KNOW, CAN YOU SPEAK TO THAT A LITTLE BIT, PLEASE? SURE. UH, I, I DON'T SEE IT PROVIDING ANY ADDITIONAL INCENTIVE OR PRESSURE FOR LAND SWAPS. THE ONLY CITY SERVICE THE CITY WILL BE PROVIDING OUT THERE IS, IS POLICING, UH, WHICH IT ALREADY POLICES THE, THE CITY'S OWN WASTEWATER TREATMENT PLANT AND THE DELLS AREA. UM, AND LIKE I I MENTIONED AT THE LAST MEETING, THE, THE AMOUNT OF TIMES YOU'LL SEE THE POLICE DEPARTMENT OUT THERE IS JUST AS OFTEN AS YOU'VE SEEN YAVAPAI COUNTY SHERIFF'S OFFICE OUT THERE, WHICH I DON'T BELIEVE IS [00:50:01] VERY MUCH, I DIDN'T PULL ALL THE POLICE REPORTS, BUT I DON'T THINK THERE'S HARDLY ANY CALLS FOR SERVICE OUT IN THE VAST MAJORITY OF THAT AREA. UM, OTHERWISE THE CITY, YOU KNOW, DOESN'T PROVIDE WATER. UM, THE SEDONA FIRE DISTRICT ALREADY SERVICES THAT AREA, SO IT DOESN'T CHANGE IT. AND SO I DON'T SEE, UH, THIS, IT'S NOT LIKE WE'RE COMING IN AND BRINGING WATER, ELECTRICITY, GAS AND SEWER READY FOR DEVELOPMENT NOW. UH, WE DON'T PROVIDE THOSE SERVICES THAT DON'T EXIST FOR THE MOST PART IN THOSE AREAS. UM, AND SO I DON'T SEE THAT THAT BEING A CONCERN. SHOULD THERE, IF THERE WERE ZONING IN THE FUTURE THAT CHANGED, IT WOULD ALLOW FOR RESIDENTIAL DEVELOPMENT IN ANY OF THOSE AREAS? ARE WE, BECAUSE IT WOULD THEN MEAN SEDONA CITY LIMITS. ARE WE UNDER AN OBLIGATION TO OFFER SEWER SERVICES? N NO. SO JUST LIKE WE HAVE SECTIONS OF THE CITY THAT WE DO NOT, UM, CURRENTLY PROVIDE SEWER SERVICES TO, WE HAVE OUR, OUR SEWER, UM, SERVICE BOUNDARY LIMITS BASICALLY, AND WHAT COUNCIL HAS SET, AND WE ARE NOT, UH, CURRENTLY IN THE PROCESS OF EXPANDING THAT. UM, SO THERE WON'T BE AN OBLIGATION TO DO SO, UM, EVEN IF IT, UH, ANY DEVELOPMENT EVER HAPPENED OUT THERE. SO, SO BRINGING THIS INTO CITY, ANNEXING THE LAND, BRING IT INTO CITY, YOU DON'T SEE THAT HAVING AN EFFECT. I JUST WANT TO MAKE IT CLEAR AGAIN, ON CITY SERVICES OR HAVING ANY KIND OF, UM, IMPACT ON FUTURE DEVELOPMENT THAT WOULD HAPPEN BE, UM, ASIDE FROM THE IMPACT OF THE ANNEXATION, IS THAT CORRECT? SO YEAH, JUST TO CLARIFY, THERE WILL BE AN, AN POLICING IMPACT, UM, ON THE CITY, BUT OTHERWISE, NO OTHER IMPACT ON CITY SERVICES. UM, IF ANY LAND SWAPS WERE TO OCCUR WITHIN THE CITY'S JURISDICTION, THEY WILL, ALL THIS PROPERTY WILL BE ANNEXED IN WITH THE, UM, MOST EQUIVALENT, UH, ZONING, UH, CLASSIFICATION THAT WE HAVE TO THE COUNTY'S CURRENT ZONING CLASSIFICATION, WHICH WOULD BE OUR RS UH, 70,000. SO TWO ACRE, ONE UNIT, SINGLE FAMILY RESIDENTIAL, ONE UNIT PER TWO ACRES, BASICALLY. UM, AND SO THAT'S WHAT IT'S ALL GONNA BE ZONED AT THE INITIAL POINT. AND SO ANYTHING ELSE OTHER THAN SINGLE FAMILY HOMES ON TWO ACRE LOTS THAT ANYONE WANTED TO CONSTRUCT WOULD HAVE TO COME TO THE CITY, UH, FOR A REZONING. SO, BUT AGAIN, THIS IS ALL OWNED BY THE COO NATIONAL FORCE AND THERE IS NO ANTICIPATED, UM, DEVELOPMENT OF THAT AREA. THANK YOU, PETE, ANYTHING? NO QUESTIONS. OKAY, THERE. OKAY. ALL RIGHT. THIS IS A PUBLIC HEARING, SO WE'LL OPEN THE, UH, THE MICROPHONE UP. SO COME UP WHEN YOU HEAR YOUR NAME. UH, RICK BLACK WILL BE FOLLOWED BY, UH, NINA BARLOW. COME ON. YEAH, COME ON RICK. IT HASN'T A DOUBT LONG SINCE YOU'VE COME TO THE MIC. START, START WITH YOUR NAME AND CITY OF RESIDENCE. WELL, FIRST LEMME SAY HELLO MAYOR. HELLO, SIR. I KNOW YOU EXACTLY. HELLO, VICE MAYOR AND COUNCIL MEMBERS. YEAH, MY NAME IS RICHARD BLACK. I GO BY RICK. UM, I LIVE IN OAK CREEK CANYON AND, UM, I'M SORRY, WHAT ELSE DO YOU NEED? JUST THAT CONTINUE? IS THAT GOOD? OKAY. UH, MY BACKGROUND IS COMMERCIAL DEVELOPMENT, LAND ACQUISITION, AND UH, I'VE BEEN DOING IT SINCE 1980, SO I'M AN OLD GUY. UM, I I, AND DURING THAT TIME AND BEING IN THE BUSINESS, I'VE SEEN A LOT OF CHANGES. I'VE SEEN PROPERTIES THAT HAVE BEEN SET ASIDE OR DEDICATED FOR ONE PURPOSE, AND THEN OVER TIME THINGS CHANGE. UM, SO AM I ALLOWED TO ASK QUESTIONS? CAN I ASK A QUESTION AND, OR IS THIS YOU COULD ASK QUESTIONS AND WE'LL ANSWER IT AFTER YOU, UH, OKAY. WE, BUT WE CAN'T GO BACK AND FORTH. OKAY. OKAY. I'M WONDERING, THE MAIN REASON WHY I'M HERE, I'M WONDERING IF THE CITY WOULD CONSIDER PLACING A DEED RESTRICTION ON THE ENTIRE PROPERTY TO PREVENT COMMERCIAL DEVELOPMENT AND RESIDENTIAL DEVELOPMENT FOREVER. CAN'T ANSWER THAT NOW, BUT WE'LL AFTER WE'RE DONE WITH THE, OF COURSE, PUBLIC HEARING, RIGHT? UM, IF YOU, IF YOU, IF THE PROPERTY IS WITHOUT A DEED RESTRICTION FOR THOSE PURPOSES, THE CITY MAY BE INCLINED 10 YEARS FROM NOW, 20 YEARS FROM NOW, SELLING THE PROPERTY MAY BE PIECING IT OFF BECAUSE THAT PROPERTY IS EXTREMELY VALUABLE. PLACING A DEED RESTRICTION ON IT TELLS THE WORLD, TELLS EVERYBODY TELLS THE CITY, UH, AND ITS CITIZENS THAT THE PROPERTY CANNOT BE DEVELOPED FOR COMMERCIAL AND RESIDENTIAL. AND I, AND I, OBVI OBVIOUSLY I BRING THIS UP BECAUSE AS EVERYONE KNOWS, TRAFFIC IS LITERALLY IMPOSSIBLE IN THE CITY AT THIS POINT. SO, UM, I WOULD JUST, BASED ON MY BACKGROUND, [00:55:01] I WOULD REALLY, STRONGLY CONSIDER OR HAVE, HAVE THE CITY CONSIDER PLACING A DE RESTRICTION FOR ANY KIND OF FUTURE DEVELOPMENT ON THAT, ON THAT PROPERTY. SO THAT'S IT. ALRIGHT. THANK YOU, RICK. THANK YOU. WE'LL ADDRESS THAT AFTERWARDS. OKAY. UH, NINA WILL BE FOLLOWED BY CLIFF HAMILTON. I KNOW YOU REMEMBER HOW TO DO IT. NAME, CITY OF RESIDENCE. ALL RIGHT. UH, NINA BARLOW. I'M A RESIDENT OF, UH, CLARKDALE. I OWN BARLOW JEEP BRUNOS HERE IN TOWN. UM, I AM ON THE WORKING GROUP FOR THE GREATER SEDONA RECREATION COLLABORATIVE. UM, I HAVE SOME, SOME COMMENTS OR SOME INFORMATION TO SHARE, UM, WHICH I'VE SHARED WITH MOST OF YOU ALREADY. BUT, UM, JUST TO, TO HAVE THIS OUT THERE IN THE PUBLIC FORM AS WE'RE DEVELOPING. SO THIS IS MORE LIKE, KEEP THIS, THIS IS INFORMATION. PLEASE KEEP THIS IN MIND AS WE MOVE FORWARD WITH THESE THINGS. UM, SO ONE OF THE, THE THINGS THAT OF COURSE, THE GSRC IS WORKING ON IS, UH, DEVELOPING ROUTES, UM, AND UTILIZING EXISTING ROUTES IN WAYS THAT CAN REDUCE, UH, MULTI-USER CONFLICT AND OF COURSE REDUCE NO NOISE AND DUST, UM, FROM OHV TRAFFIC. AND ONE OF THE THINGS THAT WE'VE IDENTIFIED AND WE ARE CURRENTLY STUDYING IS, UM, UTILIZING A TRAIL OUT THERE CALLED CLIFFHANGER, WHICH IS, IT'S GREAT THAT YOU HAVE THIS MAP UP BECAUSE THE TRAIL IS ACTUALLY ON THIS MAP, UM, WHICH IS ON THE SOUTH SIDE OF WHOA, , ZOOM OUT, ZOOM OUT, RIGHT? IT'S, YEAH, THAT'S THIS, THAT'S A ONE SIDE OF THE CLIFFHANGER TRAIL. SO IT'S ON THE SOUTH SIDE OF HIGHWAY 89 A. AND, UM, ONE OF THE REASONS THAT IT IS NOT UTILIZED VERY MUCH AT THIS TIME IS BECAUSE, UM, YOU KNOW, IT'S, IT'S A COUPLE HOURS TO DO THAT TRAIL, AND THEN PEOPLE WANT TO CONTINUE ON WITH THEIR DAY. AND SO, UM, THEY WILL GO TO THE NORTH SIDE OF THE HIGHWAY, THE WEST SIDE OF SEDONA, UH, UTILIZE, UH, DIAMONDBACK GULCH OUTLAW TRAIL, UM, WHICH OF COURSE, AS YOU KNOW, GO PAST, UH, GO, GO UP DRY CREEK ROAD PAST THE RESIDENCE ON DRY CREEK ROAD, UM, GO OUT BOYNTON PASS ROAD PAST THE RESIDENCE IN BEAR MOUNTAIN ESTATES, UM, UH, AT LEAST TWICE, IF NOT THREE TIMES, DEPENDING ON WHICH DIRECTION THEY'RE, THEY'RE COMBINING THOSE TRAILS. UM, WE ARE LOOKING FOR A WAY TO GET TRAFFIC ACROSS HIGHWAY 89 A SAFELY. AND SO WITH THE POTENTIAL DEVELOPMENT OF, UM, YOU KNOW, A BUS TERMINAL OR WHATNOT AT THE, AT THE TREATMENT PLANT AND PART OF THIS ANNEXATION PROCESS, WE WOULD VERY MUCH LIKE TO CONSIDER SOME WAY, UM, IN WHICH WE CAN GET OHV TRAFFIC ACROSS THE HIGHWAY. UM, AND AGAIN, THIS IS FOR THE BENEFIT, NOT JUST OF THE RESIDENTS, BUT UM, YOU KNOW, HIKERS, UH, CATTLE RANCHERS, UH, THE ARIZONA GAME. AND FISH HAS EXPRESSED SUPPORT BECAUSE IT TAKES TRAFFIC AWAY FROM, YOU KNOW, THEIR, THEIR MORE SENSITIVE WILDLIFE AREAS AS WELL. UM, I WOULD BE HAPPY TO PRESENT MORE INFORMATION ON THIS AS THIS DEVELOPS. UM, WE HAVEN'T, UH, YOU KNOW, FINISHED OF COURSE OUR PHASE TWO FOR GSRC, BUT THIS IS, UH, THIS WAS GENERAL, GENERAL SUPPORT IN THE ROOM. I CAN'T SPEAK OFFICIALLY AS GSRC SAYING, YES, WE WANT THIS, BUT, UH, EVERYBODY WAS LIKE THIS, THIS SOUNDS GREAT, WE SHOULD WORK ON THIS. AND OF COURSE, YOU'VE TASKED US WITH MAKING SURE THAT WE'RE DOTTING ALL OUR I'S AND CROSSING ALL OUR T'S, MAKING SURE THERE'S NO OTHER CONFLICTS WE HAVEN'T FORESEEN YET. THANK YOU. THANK YOU. THANK. ALRIGHT, CLIFF HAMILTON, CLIFF, I KNOW YOU KNOW THE DRILL TOO. GOOD EVENING, MAYOR AND COUNCILORS. UH, THE ANSWER TO YOUR QUESTION IS HIP REPLACEMENT. UM, I SENT YOU ALL AN EMAIL. CLIFF, YOU GOTTA START WITH YOUR NAME, I'M SORRY, CLIFF HAMILTON. I LIVE IN SEDONA. I SENT YOU ALL AN EMAIL EXPRESSING MY CONCERNS ABOUT SOME POTENTIAL UNINTENDED CONSEQUENCES OF THIS KIND OF ANNEXATION. SO I THINK YOU'VE SEEN THOSE. AND TONIGHT I'D LIKE TO FOCUS MORE ON THE, ON THE REASONS WHY YOU'RE, YOU'RE PURSUING THIS. SO I UNDERSTAND IT FROM, FROM LOOKING AT WHAT YOU'VE PUT OUT, THERE ARE REALLY TWO OF THEM. ONE, YOU'RE CONCERNED THAT COTTONWOOD MAY BE TRYING TO LEAPFROG ANNEX MORE IN OUR DIRECTION AND THUS END UP TAKING OVER POTENTIAL CONTROL OF SOME OF THAT AREA AND REDUCING OR ELIMINATING YOUR POSSIBILITIES FOR WHAT YOU MIGHT WANNA DO IN TERMS OF, YOU'VE EXPRESSED FUTURE DEVELOPMENT THERE. THE OTHER ONE BEING OF COURSE, THIS ISSUE WITH YAVAPAI COUNTY HAVING TO DO WITH, UH, BUILDING THE, THE BUS BARN OUT THERE AT THE WASTEWATER PLANT, STARTING WITH THE FIRST ONE, LOOKING AT THAT PARTICULAR AREA, ANY SORT OF PUBLIC INFRASTRUCTURE THAT YOU MIGHT WANT TO THINK ABOUT IN TERMS OF FUTURE DEVELOPMENT, I WOULD SAY PERSONALLY IS NEVER GOING TO HAPPEN. ABOUT 14 OR 15 YEARS AGO AS THE COUNCIL, WE LOOKED AT THAT WHOLE ISSUE IN DEPTH. WE LOOKED AT VARIOUS KINDS OF OPTIONS. AND WHAT WE FOUND IN DOING THAT IS THAT THERE REALLY [01:00:01] NONE OF THEM THAT REALLY WERE, WERE SUITABLE OR APPROPRIATE FOR THAT AREA. BUT THAT WASN'T THE ONLY THING THAT REALLY PUT THE KIBOSH ON THAT. THE THING THAT WE NEVER SAW COMING, AND I DON'T THINK YOU'VE LOOKED AT THAT EITHER, IS THE FACT THAT ANY KIND OF PUBLIC INFRASTRUCTURE DEVELOPMENT OUT THERE WAS SOMETHING THAT ADOT TOLD US THEY WOULD NOT TOLERATE HAVING A BIG FLOOD OF CARS GOING OUT ON THE ROAD IN THAT HIGH SPEED FOUR LANE, UH, DIVIDED HIGHWAY FREEWAY TYPE SITUATION. THEY WOULD NOT GRANT THE CITY ACCESS TO THE ROAD FOR ANY KIND OF THAT SORT OF THING, WHICH IS SOMETHING YOU REALLY NEED TO TAKE A CLOSE LOOK AT. IF THIS CONCERN ABOUT PUBLIC INFRASTRUCTURE REALLY IS REALLY IS YOUR CONCERN OF, OF COTTONWOOD GOING THAT DIRECTION. THE SECOND THING IS THAT IF YOU'RE, UH, SO I DON'T REALLY THINK YOU HAVE A REASON THERE FOR THIS ANNEXATION. SECOND THING IS, IF YOU'RE LOOKING AT THIS ISSUE WITH YAVAPAI COUNTY AND WANNA SORT OF GET AROUND THEM IN ORDER TO BUILD THIS, UH, BUS FACILITY OUT THERE, THAT SEEMS A PRETTY THIN REASON TO ME TO TRY TO TAKE OVER SOMEWHERE AROUND, UH, YOU KNOW, 3000 ACRES OF FOREST SERVICE LAND. AND WHILE WE'VE HEARD THE, UH, THAT THIS MAY NOT HAVE AN IMPACT ON THE CITY, WE'VE ALSO HEARD THAT IT DEFINITELY CAN, BECAUSE THINGS DO CHANGE. THERE'S BEEN A LOT OF CHANGES HERE, AND WE KNOW ONE OF THE CHANGES COMING IN IN WASHINGTON DC IS GOING TO MAKE A SIGNIFICANT DIFFERENCE IN HOW AGENCIES OPERATE AND HOW, WHAT KINDS OF, UH, EXPLOITATIONS THEY LOOK AT DOING. SO I, AS I SAID IN MY LETTER TO YOU, THIS LOOKS MORE TO ME LIKE TRYING TO SWAT A FLY WITH A SLEDGEHAMMER AND THE UNINTENDED CONSEQUENCES ARE SOMETHING WE REALLY NEED TO PAY ATTENTION TO. THANK YOU. THANK YOU, CLIFF. OKAY, ANYBODY ELSE WISH TO SPEAK ON THIS ITEM? OKAY, WE'LL CLOSE THE PUBLIC HEARING, BRING IT BACK TO COUNSEL AND ANY OTHER QUESTIONS FOR KURT ABOUT EVEN SOME OF THE SPEAKERS? KATHY? I I DO HAVE TWO QUESTIONS. UM, WOULD A DEED RESTRICTION BE POSSIBLE, KURT? AND IF IT WAS IN WHAT KIND OF TIE FOR, LIKE, HOW WOULD WE DO THAT AND WHEN COULD THAT BE LOOKED AT? WOULD THERE BE A LIMITATION ON LOOKING AT THAT IN THE FUTURE? OR, UH, I'M JUST CURIOUS TO HAVE THAT QUESTION ANSWERED. SO, MAYOR COUNSEL, ONE CONFUSION THAT CONTINUES TO COME UP IS THAT THE ANNEXATION, WHILE IT CHANGES JURISDICTIONAL BOUNDARIES, IT DOESN'T CHANGE OWNERSHIP OF THE LAND. AND SO THERE'S NO POSSIBILITY FOR THE CITY TO PLACE A DEED RESTRICTION ON THE COO NATIONAL FOREST LAND. IT DOESN'T OWN IT. UH, THERE'S NO POSSIBILITY FOR THE CITY TO PLACE A, UM, DEED RESTRICTION ON THE ADOT PROPERTY. THE CITY DOESN'T OWN THAT AND WON'T OWN THAT. UM, EVEN WITH THE ANNEXATION, UH, THE CITY IS OPEN AND CAN CONSIDER PLACING A DEED RESTRICTION ON ITS OWN PROPERTY. UM, THE NORTH SIDE OF THE HIGHWAY IS ALREADY ALL USED UP PRETTY MUCH AND WILL ALWAYS BE USED UP AS A WASTEWATER TREATMENT PLANT. I BELIEVE. I DON'T, UM, UNLESS WE FIND OF A, A NEW BETTER WAY OF TREATING WASTE WATER, IT TAKES UP A LOT LESS SPACE IN THE FUTURE. BUT FOR THE FORESEEABLE FUTURE, THAT'LL ALWAYS, ALWAYS BE USED ON THE NORTH SIDE. AND THEN ON THE SOUTH SIDE, THAT'S ACTUALLY ALWAYS BEEN, OR MAYBE NOT ALWAYS, BUT UH, RECENTLY BEEN MORE DISCUSSED THAT THE CITY MIGHT WANT TO USE THAT FOR HOUSING IN THE FUTURE. UM, NOW YOU'RE FIVE YEARS OUT FROM GETTING THE RECHARGE WELLS BUILT AND GETTING THIS, UH, WASTEWATER SPRINKLER SYSTEM OFF THE PROPERTY. UM, BUT IT COULD BE USED, UM, ALSO AS LONG AS IT MAY RE REMAIN CITY OWNERSHIP, IF THE CITY PLACE SOME DEED RESTRICTION ON IT, THEN THE CITY COULD JUST TAKE IT OFF, RIGHT? SO THE ONLY WAY FOR IT TO REALLY CARRY WOULD BE FOR THE CITY TO PLACE A DEED RESTRICTION ON AND THEN SELL IT TO SOMEONE ELSE. SO, UM, THERE IS A POSSIBILITY THE CITY COULD DO, YOU KNOW, A CONSERVATION EASEMENT OVER IT AND THEN, YOU KNOW, SELL IT TO SOMEONE WHO WANTED TO BUY IT FOR CONSERVATION. UM, THAT IS AN OPTION FOR THE CITY. THANK YOU. AND, AND THAT'S REALLY AN OPTION WHETHER OR NOT THE CITY ANNEX IS THE PROPERTY. UM, IT COULD BE AN OPTION ANYWAY. OKAY. AND I JUST WANTED TO TAKE ONTO THAT. SO, UH, WHAT MR. HAMILTON SAID ABOUT THE FOREST SERVICE LAND WOULD REMAIN FOREST SERVICE LAND. WE, BECAUSE IT'S NOT ALL LAND, WE DON'T OWN IT, WE'RE JUST RESPONSIBLE FOR IT. YEAH. SO THE ONLY DIFFERENCE IS WE'RE TAKING OVER POLICING AUTHORITY FROM YAVAPAI COUNTY. THAT'S REALLY THE, THAT THE, THE ONLY DIFFERENCE. AND, AND FOR THE COCONINO NATIONAL FORCE. RIGHT. OKAY. I JUST WANTED TO GET THAT IN AS WELL. ALRIGHT, KATHY, CONTINUE. YEAH. MY SECOND QUESTION IS, UM, AND I THINK THIS MIGHT GO TO ANNETTE. I'M NOT SURE WHICH ONE OF YOU, UM, DOES ADOT ADOT KNOWS THAT THE, THIS ANNEXATION IS UNDER DISCUSSION? AND DO THEY, HAVE THEY HAD ANY COMMENTS? NO. SO WE DID NOTIFY ADOT, UM, UH, OF THE ANNEXATION. THEY GENERALLY DON'T, IN THIS TYPE OF ANNEXATION, IT, IT DOESN'T AFFECT THEM. THEY DON'T HAVE A, A LEGAL SAY IN IT, YES OR NO. SOMETIMES THEY'LL INFORMALLY TALK TO US ABOUT IT, AND I DON'T KNOW THAT WE'VE, I HAVE NOT HEARD ANYTHING BACK FROM OUR OFFICIAL NOTIFICATION. UM, I DON'T KNOW IF WE'VE HEARD ANYTHING BACK INFORMALLY FROM THEM. NO, I'M SEEING A BUNCH OF HEAD SHAKES. NO. SO, BUT AGAIN, THIS DOESN'T CHANGE. IT'S JUST CHANGED JURISDICTIONAL [01:05:01] BOUNDARY. IT DOESN'T CHANGE OWNERSHIP. WE HAVE NO REASON TO THINK. OR IS THERE ANY REASON TO THINK THAT AN ANNEXATION WOULD CHANGE ANY DISCUSSIONS WITH ADOT IN ANY WAY WHATSOEVER? JUST THE FACT THAT THIS IS NOW WITHIN CITY LIMITS? NO. AND, AND IN FACT, BEFORE THESE DISCUSSIONS, THE CITY WAS ALREADY IN DISCUSSION WITH A DO OVER IMPROVING THAT INTERSECTION IN LIGHT OF THE MAINTENANCE AND, UM, MAINTENANCE AND OPERATIONS FACILITY FOR TRANSIT. UH, SO THOSE WERE ALREADY GOING PLACE. THEY DON'T APPEAR TO HAVE THE SAME CONCERNS THAT THEY MAY HAVE HAD 15 YEARS AGO. OKAY. THANK PETE. ANYTHING COMMENTS? OKAY. ANY, UH, MORE FOLLOW UP QUESTIONS? UH, QUESTION FOR KURT. THE, THE ANNEXATION LINES, FOLLOWING THE SECTION LINES MOSTLY, WAS THAT FOR CONVENIENCE OR WAS THAT BECAUSE OF THE CONTINUITY REQUIREMENTS AND THE WIDTH REQUIREMENTS? AND CAN YOU LIKE UP AT THE NORTH END OF THIS, OF THE ANN? A LITTLE, A LITTLE OF BOTH. SO THE, THE BEGINNING PART FOR MEASURING THAT THE, THE WIDTH IS NOT GREATER THAN TWICE. THE, THE LENGTH OF THE PROPOSED ANNEXATION AREA MEANT THAT WE GRABBED A WIDER WIDTH HERE AT THE BEGINNING, UH, FOR CONTINUITY REASONS. UM, AND THEN FOR EASE OF ANNEXING AND FOR SURVEYING, WE FOLLOWED JUST THE SECTION LINES, UH, GOING AROUND THIS PRIVATE PROPERTY HERE. SO IT WAS, IT WAS CAUSED BY BOTH. OKAY. SO WE COULDN'T EX I CAN'T READ THOSE NUMBERS. IS THAT SECTION NINE 17? THIS IS SEVEN SEVEN OR S 17. S 17. WE CAN SECTION 17, WE COULDN'T EXCLUDE THE NORTH HALF OF THAT. SO I MEAN, WE, WE ARGUABLY COULD HAVE GONE DOWN A LITTLE LOWER TO MAYBE IN THE MIDDLE OR SOMETHING LIKE THAT. BUT SINCE WE WERE RIGHT THERE, IT JUST SEEMED TO MAKE SENSE JUST TO FOLLOW THE SECTION LINES. OKAY. SO YEAH, THERE, IT, IT DIDN'T NEED TO GO THAT FAR, BUT IT NEEDED TO GET UP CLOSER TO THAT. AND SO THEN WE JUST FOLLOWED THE SECTION LANE. OKAY. OKAY. WE'LL GO BACK TO MY RIGHT. UH, BRIAN, ANY COMMENTS? THANK YOU, MAYOR. UH, MR. HAMILTON, YOU'VE, UH, RAISED INTERESTING QUESTIONS VIA YOUR EMAILS, AND I'VE ENJOYED PONDERING OVER THOSE AND THINKING ABOUT, YOU KNOW, UH, WHAT A, WHAT A RESPONSE LOOKS LIKE. AND I DID HAVE AN EXCHANGE WITH YOU ON THE FIRST ROUND OF, OF THE EMAILS. AND, UH, AGAIN, I THANK YOU FOR YOUR INTEREST ON THIS TOPIC. UM, I THINK THAT, YOU KNOW, ONE OF THE OTHER COMMENTS WAS, YOU KNOW, THAT THIS IDEA OF PUTTING A, A DEED RESTRICTION OR AS YOU THEN RE UH, FRAMED IT AS A CONSERVATION EASEMENT, THAT THAT KIND OF FEELS LIKE, UM, WHAT'S THE OFFICIAL TERMINOLOGY THAT ONE COUNCIL CAN'T CONSTRAIN A FUTURE COUNCIL? I MEAN, IT KIND OF FEELS LIKE THAT'S WHAT WE WOULD BE DOING BY PUTTING A CONSERVATION EASEMENT ON THAT PROPERTY. UM, SO I'M NOT REALLY IN FAVOR OF THAT. UM, FOR ME PERSONALLY, LIKE I'M NOT CONCERNED AT ALL ABOUT COTTONWOOD AND THE FACT THAT THEY'RE BEING AGGRESSIVE ABOUT, UM, ANNEXING LAND. GOD BLESS 'EM. UH, BUT THAT DOESN'T MOTIVATE ME IN THIS CASE. THE, UH, I, I, I DON'T KNOW WHAT WILL HAPPEN WITH THE LAND THAT THE CITY OWNS, BUT I SUSPECT THERE WILL BE SIGNIFICANT DISCUSSION ABOUT DEVELOPMENT OF IT AT SOME FUTURE TIME. AND WHEN THAT IS, I COULD NOT EVEN BEGIN TO GUESS. IS IT A WEEK, A MONTH, A YEAR, 10 YEARS, 20 YEARS? I HAVE NO IDEA. BUT WHAT CHALLENGES ME IS, UM, YOU KNOW, AND JUST USING, UM, IS IT MR. BLACK? IS THAT RIGHT? YEAH, YEAH. UM, YOU KNOW, YOU MENTIONED BEING IN DEVELOPMENT STARTING IN 1980. THE US POPULATION WAS 226 MILLION IN 1980. THE ESTIMATE AS OF THE BEGINNING OF LAST YEAR WAS 346 MILLION. SO OUR POPULATION HAS GROWN BY 50% DURING THAT TIME THAT YOU'VE BEEN DOING DEVELOPMENT. AND I'M CHALLENGED WITH THE NOTION OF WHERE DO WE PUT ALL THESE PEOPLE? WHERE DO WE PUT THE PEOPLE THAT CONTINUE TO LIVE ON THE LAND SOMEWHERE IN THE UNITED STATES? AND IS IT FAIR? IS IT OKAY? IS IT MORALLY CORRECT TO SAY, SORRY, WE THINK WE HAVE ENOUGH HERE. THE DOOR'S CLOSED, NOBODY ELSE CAN COME. I, I, I DON'T KNOW. I DON'T KNOW WHAT THE RIGHT ANSWER IS. I SUSPECT THAT WATER AVAILABILITY MATTERS AND THINGS LIKE THAT, YOU KNOW, INFRASTRUCTURE AVAILABILITY, THOSE ARE BIG, BIG DISCUSSIONS. AND I DON'T SEE, UH, MYSELF AT LEAST HAVING ANY INTEREST IN DELVING INTO THOSE RIGHT AWAY. BUT I DON'T SEE A REASON WHY WE WOULD WANT TO PRECLUDE THE OPPORTUNITY TO DEVELOP IN THE FUTURE. UM, AS FOR THE, UH, MATTER AT HAND HERE, I DO INTEND TO SUPPORT MOVING FORWARD WITH THE ACT, UH, ANNEXATION. THANK YOU, MAYOR. THANK YOU. MELISSA, YOU HAVE ANY COMMENTS? ANYTHING ADD? IT'S HARD TO FOLLOW THAT. UM, RIGHT. SO I, I CERTAINLY AGREE WITH EVERYTHING THAT COUNCILOR FOLTZ HAD TO SAY. [01:10:01] UM, I'M ALSO IN FAVOR OF THE ANNEXATION I'VE STATED IN THE PAST, AND WILL CONTINUE TO STATE THAT IF DEVELOPMENT IN THE FUTURE, WHETHER THAT'S FIVE YEARS, 10 YEARS, 20 YEARS, OCCURS ON THE DELLS, AND IF THAT INCLUDES HOUSING, THEN THOSE PEOPLE HAVE THE RIGHT TO HAVE A VOICE IN SEDONA. AND UNLESS WE DO THIS ANNEXATION, THEY WILL HAVE NO VOICE BECAUSE THEY WILL BE LIVING IN THE COUNTY. AND SO, UM, I'M IN FAVOR OF THIS BECAUSE I BELIEVE IN THE FUTURE WE MAY SEE DEVELOPMENT, BUT IT'S GOING TO BE A WHILE. AND WE WILL HAVE THOSE CONVERSATIONS AND WE WILL HAVE THOSE PUBLIC CONVERSATIONS AROUND WHAT WILL GO OUT THERE AND HOW IT WILL BE PROCEEDED. BUT IN THE MEANTIME, I DO BELIEVE THAT ANYTIME, NOT COMMERCIAL, BUT RESIDENTIAL DEVELOPMENT HAPPENS, THOSE INDIVIDUALS HAVE A RIGHT TO HAVE A VOICE IN OUR CITY. SO I WILL BE SUPPORTING THE ANNEXATION VICE MAYOR. I TOO WILL BE SUPPORTING THE ANNEXATION. AND FOR MANY OF THE SAME REASONS, PARTICULARLY WHEN WE'VE TALKED ABOUT DELL'S DEVELOPMENT. AND I SEE THAT AS IN THE FUTURE, IT WILL PROBABLY BE DEVELOPED IN SOME WAY, SHAPE, OR FORM WHEN I DON'T KNOW. BUT AS THE VERDE VALLEY GROWS AND, UH, AND AS MORE PEOPLE COME INTO THIS AREA, I MEAN, ALREADY COTTONWOOD IS PLANNING A HUGE DEVELOPMENT IN COVILLE, BUT WAS COVILLE IS NOW COTTONWOOD. UH, EVEN THOUGH CORNFIELD'S NOT A REAL CITY, IT'S A COUNTY. UH, I, I DO THINK, AND LOTS OF PEOPLE HAVE SUGGESTED IN WITH REGARDS TO THE DEVELOPMENT OF THE WESTERN GATEWAY, THAT WE SHOULD PUT HOUSING ON THE DELLS AND ENTERTAINMENT ON THE GATEWAY AND VICE VERSA. UH, THAT I WAS NEVER REALLY IN SUPPORT OF MOVING PEOPLE OUT OF THE CITY OF SEDONA BECAUSE WE OWN PROPERTY THERE. SO I AGREE THAT IF THERE IS TO BE RESIDENTIAL DEVELOPMENT, THEN THE PEOPLE WHO LIVE THERE SHOULD HAVE A SAY IN THEIR GOVERNMENT BECAUSE IT'D BE CITY OWNED LAND, BUT THEY WOULDN'T BE ABLE TO HAVE ANY VOICE WHATSOEVER IN ANYTHING THAT THE CITY WOULD CHOOSE TO DO. SO FOR THOSE REASONS, I DO SUPPORT THE ANNEXATION, DEREK, I SUPPORT THE ANNEXATION. UM, YOU KNOW, WHETHER OR NOT THIS PROPERTY IS ANNEXED HAS NO EFFECT ON WHETHER THERE'S GONNA BE A LAND SWAP. IT DOESN'T MAKE IT ANY MORE OR LESS LIKELY THAT THERE COULD BE A LAND SWAP. UM, IF AT SOME POINT IN THE FUTURE THE STANDARDS FOR LAND, UH, LAND SWAP ARE LOOSENED, AND A SWAP DOES TAKE PLACE, I'D RATHER WE HAVE JURISDICTION OVER IT THAN SOMEONE ELSE. UH, IT'S BASICALLY IN OUR BACKYARD. UH, AND IT CONNECTS US TO THE JAIL'S PROPERTY, WHICH WE CERTAINLY WANNA HAVE IT AIR CONTROL. SO FOR THOSE REASONS, I SUPPORT THE ANNEXATION. THANK YOU, DEREK. PETE. THANK YOU, MAYOR. WELL, NO ONE WILL BE SURPRISED THAT I DON'T SUPPORT THIS. I DIDN'T, BEFORE I CONTINUE NOT TO BE. THIS TO ME LOOKS LIKE A RUSHED, WHAT I WILL CALL A MAJOR CHANGE IN PUBLIC POLICY HERE IN SEDONA. IT WAS, I WOULD SAY, A VERY UNHERALDED, UNHERALDED ELEMENT IN OUR COMMUNITY PLAN THAT CHANGED FOR THE FIRST TIME IN YEARS AND YEARS AND YEARS AND YEARS AND YEARS. WITHOUT REALLY A PUBLIC DEBATE, I WOULD BET THAT 99% OF OUR POPULATION DOES NOT KNOW THAT PUBLIC POLICY WAS CHANGED BY THAT COMMUNITY PLAN, OR MAY REMAIN PUZZLED BY THE NEED AND THE TIMING. I AM CONCERNED ABOUT THE MINOR CURRENT FINANCIAL OBLIGATION, BUT THE POTENTIAL LARGE FUTURE FINANCIAL OBLIGATION TO THE CITY. UH, AND I'M ALSO WORRIED ABOUT UNKNOWN DECISIONS BY FUTURE COUNSEL. PEOPLE SITTING UP HERE ARE NOT GONNA CONTROL THE FUTURE ON THIS. LEAVE A GOOD THING ALONE. THANK YOU, PETE. KATHY, THANK YOU, MAYOR. UM, I'VE REALLY PONDERED THIS A LOT. UM, I'VE LOOKED INTO IT. I'VE, I'VE, I'VE TRIED TO DO MY HOMEWORK ON IT AS BEST AS I CAN, UH, TO MAKE SURE I, UNINTENDED CONSEQUENCES ALWAYS WORRY ME. UH, BUT I'VE TRIED TO TURN OVER THE STONES TO LOOK AT WHAT THE POSSIBILITIES COULD BE. I'M A CHESS PLAYER, SO I LIKE TO LOOK THREE STEPS AHEAD, FOUR STEPS AHEAD. UM, I DO THINK THAT IT IS INEVITABLE THAT THE VERDE VALLEY IS GOING TO GROW. IT IS INEVITABLE THAT THERE WILL BE PRESSURES ON VARIOUS AREAS. I AM CONCERNED THAT THIS AREA, I WANT TO KNOW WE HAVE AN INTEREST THERE IN TERMS OF THE, UH, TRANSIT FACILITY WE WANNA PUT IN, IN TERMS OF THE WASTEWATER, IN TERMS OF SOLAR [01:15:01] LEASING THAT'S HAPPENING OVER THERE. WE ARE INTERESTED IN THIS AREA. I THINK THIS AREA IS VERY IMPORTANT TO SEDONA. I THINK IT'S FUTURE AND WHAT IT MAY OR MAY NOT BE USED, UH, USED FOR IS VERY IMPORTANT TO SEDONA. AND I, I WOULD BE MORE COMFORTABLE WITH THIS UNDER SEDONAS JURISDICTION FOR, FOR ZONING THAN HAVING IT POSSIBLY END UP IN STAY, REMAIN UNDER COUNTY JURISDICTION FOR ZONING OR BECOME ANOTHER MUNICIPALITY'S JURISDICTION FOR ZONING. I THINK IT IS IMPORTANT FOR THE FUTURE, FOR THE PRESERVATION OF THE HEALTH OF THIS LAND AS WELL, THAT SEDONA BE THE VOICE, UH, OF ZONING FOR THAT. SO I AM, I'M, I'M SUPPORTING THIS ANNEXATION, UH, WITH A PRESERVATION MINDSET TOWARD THIS AREA. UH, AND I JUST WANT THAT TO BE KNOWN, BECAUSE AGAIN, I THINK IT'S INEVITABLE. I DON'T THINK THAT THERE'S A NEED AT THE MOMENT FOR DEVELOPMENT OUT THERE. I DON'T THINK THIS IS, IS RUSHING SOMETHING. I DON'T WANNA ENCOURAGE THAT AT THE MOMENT. 'CAUSE I THINK WE DO HAVE, AS WE TALKED ABOUT UNDER THE, THE LAST SUBJECT OF, OF THE DIFF UM, FEES, THERE'S LAND TO STILL BE BUILT ON IN SEDONA. THERE'S MULTIFAMILY HOUSING PROJECTS, UH, AND LAND IDENTIFIED FOR THOSE THAT WE'RE TRYING TO PURSUE AS WELL. I THINK THE, UH, FORMERLY KNOWN AS CULTURAL PARK OPENS UP A LOT OF INTERESTING POSSIBILITIES THAT COULD HELP US ADDRESS OUR HOUSING CRISIS. I THINK THAT, AGAIN, PROTECTING THIS LAND IS IMPORTANT, THAT IT'S BEST UNDER OUR STEWARDSHIP FOR THOSE PURPOSES. UM, I AGREE WITH THE VICE MAYOR'S COMMENTS COMPLETELY. IF THERE IS FUTURE DEVELOPMENT OF THAT LAND, UH, TO, BECAUSE WE WANT IT TO, FOR ANY KIND OF HOUSING THAT'S, THAT HELPS SERVE THE CITY OF SEDONA, THEN THE PEOPLE THAT LIVE THERE DESERVE THE RIGHT TO BE A PART OF SEDONA AND HAVE A VOICE IN THE COMMUNITY AND HAVE A VOTE. UH, SO I, I AM SUPPORTING THIS, THIS ANNEXATION, AND I'M HOPING THAT WE'RE DOING THE RIGHT THING. I THINK WE'RE DOING THE RIGHT THING. UM, UNINTENDED CONSEQUENCES OR AN UNFORTUNATE RISK ALL THE TIME. I DON'T SEE THEM HERE. UH, AND I'M WILLING TO MOVE FORWARD. THANK YOU. SO I AGREE WITH ALMOST EVERYBODY HERE. I'M SORRY, PETE. I NO SURPRISE. I DON'T AGREE WITH, UH, COUNSELOR, UH, FOREMAN. UH, I GOT IT RIGHT. YOU SAID FULL. NO, I KNOW. FOR THE BOTH OF THEM, THAT WAS ON PURPOSE. UM, THE, THE BIGGEST THING THAT'S PIQUED MY INTEREST ON THIS IS THERE WAS A FORMER COUNTY SUPERVISOR, UH, THAT HAD AN INTEREST OF TELLING US WHAT TO DO WITH THE, UH, THE LAND DEL'S LAND. IT WAS SHORT-LIVED, OF COURSE, BUT IT, IT COULD HAVE BEEN A REAL THING BECAUSE IT WAS IN THE COUNTY'S JURISDICTION AND THE COUNTY ZONING. THEY DON'T HAVE THE SAME ZONING GUIDELINES OR RESTRICTIVE GUIDELINES. SOME THAT WE HAVE WITH, UH, DENSITY OR HEIGHT. THEY, UH, HAVE A, A, UH, MAXIMUM OF THREE STORIES WHERE WE HAVE TWO. THEY'RE JUST NOW COMING INTO DARK SKY COMPLIANCE. I DON'T KNOW HOW IT'S GOING TO, UH, FARE OUT THERE, BUT I WOULD HOPE THAT THEY'RE GONNA DO THAT COUNTY, UH, CITYWIDE AND COUNTYWIDE AS WELL. COTTONWOOD IS DOING IT. YA PAI IS DOING IT AS WELL. BUT, UM, THE, THE ISSUE IS THAT ZONING, IT'S ALL LAND. WE SHOULD BE ABLE TO CONTROL OUR LAND. UH, I FIRMLY BELIEVE WHAT MIKE, UH, UH, COUNSELORS HERE SAID ABOUT HAVING IT, UH, THE PEOPLE THERE IN THE CITY LIMITS. WE ARE GONNA DO ANY KIND OF PROJECT 20 YEARS, 30 YEARS FROM NOW. HOPEFULLY I WON'T SEE THAT. UH, BUT I WANT THOSE PEOPLE TO BE PART OF OUR CITY. THEY SHOULD BE ABLE TO VOTE, THEY SHOULD BE ABLE TO PARTICIPATE, NOT JUST BE COUNTY RESIDENTS. TO ME THAT'S VERY IMPORTANT. SO OF COURSE I WILL BE SUPPORTING THIS. UH, LET'S MOVE FORWARD. WOULD YOU LIKE A MOTION? I WOULD, I MOVE TO AUTHORIZE CITY STAFF TO CIRCULATE THE BLANK ANNEXATION PETITION FOR SIGNATURES. AND ONCE SUFFICIENT SIGNATURES ARE COLLECTED TO SCHEDULE THE PROPOSED ANNEXATION FOR ADOPTION BY ORDINANCE AT A FUTURE MEETING WITHIN ONE YEAR FROM TODAY'S DATE. OKAY. DO I HAVE A SECOND? SECOND. OKAY. ANY DISCUSSION THAT HAS IT ALREADY BEEN ADDRESSED? NONE. OKAY. ALL IN FAVOR SAY AYE. AYE. AYE. OPPOSED? NOPE. OKAY. SIX TO ONE. OKAY. MOVING RIGHT ALONG. OKAY. [8.c. AB 3132 Presentation/discussion regarding the Annual Audit findings and Annual Comprehensive Financial Report (ACFR) for the City of Sedona for Fiscal Year 2023- 24.] ITEM C, AB 31 32. PRESENTATION DISCUSSION REGARDING THE ANNUAL AUDIT FINDINGS AND THE ANNUAL COMPREHENSIVE FINANCIAL REPORT. UH, FOR THE CITY OF SEDONA FOR FISCAL YEAR [01:20:01] 23 TO 24. BARBARA? OH, I'M SORRY. I THOUGHT IT WAS GONNA BE BARBARA. BARBARA. OH, IT'S GONNA BE BARBARA. I DIDN'T SEE HER UP THERE. A TEAM. IT IS, IT'S A TEAM EFFORT. THERE YOU GO. OOPS. SO I WOULD LIKE, I WOULD LIKE TO INTRODUCE, UM, JEAN DIETRICH, WHO IS THE PRINCIPAL FROM OUR AUDIT FIRM. UM, CLIFTON LARSON. ALLEN. AND I BELIEVE YOU ALL KNOW RENEE STANLEY, OUR ACCOUNTING MANAGER. UM, SHE LED THE AUDIT AND YEAR END CLOSE PROCESS. AND I WOULD LIKE TO GIVE A MAJOR SHOUT OUT TO RENEE FOR THE REALLY GOOD JOB THAT SHE DID AND THE FINANCE TEAM IN GENERAL, WHO ALL REALLY WORKED HARD TO DO THAT. AND I WAS NOT TERRIBLY INVOLVED BECAUSE I CAME IN AT THE VERY TAIL END AND IT WAS AMAZING TO COME IN AND HAVE THEM JUST KIND OF WRAPPING IT UP. SO WITH THAT, I'M GONNA TURN IT OVER TO JEAN. THANK YOU BARBARA. AND THANK YOU MAYOR, VICE MAYOR AND COUNCIL MEMBERS FOR GIVING US THIS TIME TO PRESENT OUR AUDIT FOR THE CITY OF SEDONA FOR THE FISCAL YEAR ENDED JUNE 30TH, 2024. MY NAME IS JEAN MARIE DIETRICH, AND I AM PRINCIPAL WITH CLA CLIFTON LARSON. ALLEN, YOUR EXTERNAL INDEPENDENT AUDITOR. EXCUSE ME. BEFORE, CAN YOU JUST GIVE US THE PACKET PAGE THAT, THAT STARTS ON? 'CAUSE I'M HAVING A HARD TIME FINDING IT. CITY CLERK, IT'S, SORRY. IT IS AT THE VERY END OF THE, IT'S AT THE VERY END, WHICH IS WHY IT'S RIGHT. IT'S GETTING ME INSIDE. GIMME ONE SECOND. I'LL GET, IF I HAD A NUMBER I COULD GET THERE QUICKER. SOMEWHERE BETWEEN 164 AND 512 . UH, 2 93. YAY. 2 93. THANK YOU. ENTERPRISE. THANK YOU. SORRY FOR THE INTERRUPTION. NO, OF COURSE. SO WHAT IS AN AUDIT AND WHAT IS THE PURPOSE OF AN AUDIT? WELL, WE'RE GOING TO EXAMINE AND VERIFY MANAGEMENT'S ASSERTIONS ON YOUR FINANCIAL STATEMENTS. WE'RE GONNA VERIFY THE ACCURACY, THE COMPLETENESS, THE EXISTENCE, THE RIGHTS AND OBLIGATIONS OF THE CITY. OUR AUDIT MAY RESULT IN FINDINGS AND RECOMMENDATIONS AS WE ASSESS THE PROCESSES OF THE CITY, WE EVALUATE IF THEY ADDRESS ANY AUDIT RISK. SO WHEN WE LOOK AT YOUR FINANCIAL STATEMENTS AND WE LOOK AT THE PROCESSES IN PLACE, WE DO A RISK-BASED AUDIT. AND THOSE RISKS WOULD BE INCLUDING YOUR REVENUE RECOGNITION, THE POSSIBILITY OF MANAGEMENT, OVERRIDE OF CONTROLS, AND WE'LL EVALUATE THAT RISK. AND WE'LL COME UP WITH AN AUDIT RESPONSE AS AUDITORS WORK FOR AND SHOULD COMMUNICATE TO YOU AS COUNSEL, AS THE GOVERNING BOARD OF THE CITY. AND SO WE WORK FOR YOU, WE WORK WITH MANAGEMENT, BUT WE WORK FOR YOU. THE REPORTING PACKAGE THAT WE ARE ISSUING FOR YOUR AUDIT INCLUDED COMMUNICATION TO GOVERNANCE, OUR REQUIRED COMMUNICATIONS, THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, WHICH INCLUDES OUR OPINIONS AS WELL AS WE ISSUED OUR REPORT ON GOVERNMENT AUDITING STANDARDS AS A KIND OF A, A RESPONSE TO THE INTERNAL CONTROL COMMUNICATIONS OVER FINANCIAL REPORTING. WE ALSO ISSUE A COMPLIANCE REPORT OVER THE USE OF THE HIGHWAY USER REVENUE FUNDS. AND WE ISSUE A REPORT, AN EXAMINATION REPORT ON YOUR EXPENDITURE LIMIT ANNUAL EXPENDITURE LIMITATION. AS AN OVERVIEW, DURING THE FISCAL YEAR ENDED JUNE 30TH, 2024, THERE WAS ONE CHANGE IN ACCOUNTING POLICY ASSOCIATED WITH THE PRESENTATION OF YOUR FINANCIAL STATEMENTS. GASB 100 FOCUSED IN ON CHANGES THAT CAN BE PRES PRESENTED WHEN YOU HAVE A CHANGE IN A MAJOR FUND, A RESTATEMENT DUE TO A CORRECTION OR AN ERROR. AND WITH THE CHANGE IN MAJOR FUNDS, IT CHANGES YOUR PRESENTATION TO BE MORE CONSISTENT YEAR OVER YEAR SO THAT YOU CAN SEE WHAT IT WOULD'VE LOOKED LIKE IF THAT MAJOR FUND HAD NOT CHANGED IN ARRIVING AT YOUR FINANCIAL STATEMENTS. MANAGEMENT MAKES CERTAIN ESTIMATES THESE COULD INCLUDE THE USEFUL LIFE OF DEPRECIABLE ASSETS, THE PENSION LIABILITY AS YOUR PARTICIPATION IN A SRS, AS WELL AS ALLOWANCES FOR DOUBTFUL ACCOUNTS FOR YOUR EXCHANGE REVENUES. WE DID NOT IDENTIFY ANY SIGNIFICANT ESTIMATES THAT THERE WOULD BE ANY OPPORTUNITY FOR SIGNIFICANT MANAGEMENT BIAS. WE FOUND THAT ALL ESTIMATES WERE [01:25:01] CONSISTENT WITH PRIOR YEAR, AND WE DID NOT IDENTIFY ANY BIAS BY MANAGEMENT. THERE WERE NO MATERIAL AUDIT ADJUSTMENTS. THERE WAS ONE ADJUSTMENT ASSOCIATED WITH THE AMORTIZATION OF A PREMIUM ON THE EXCISE TAX REVENUE OBLIGATIONS, BUT THE, THAT WAS 500,000. SO WHEN YOU LOOK AT YOUR FINANCIALS AS A WHOLE, REALLY NOT MATERIAL TO THE USERS WITH VERY LITTLE IMPACT, WE IDENTIFIED NO UNUSUAL OR FRAUDULENT TRANSACTIONS IN OUR TEST WORK. AND WE HAD NO DIFFICULTIES OR DISAGREEMENTS WITH MANAGEMENT. WE DID HAVE, YES, SIR. MIKE S HAD THE QUESTION. YES, MA'AM. UH, CAN YOU TELL US WHAT THE 514,000 UNAMORTIZED PREMIUM AND AMORTIZATION ISSUE WAS? IN THE PAST? THIS REVENUE OBLIGATION HAD A PREMIUM THAT YOU, WHEN YOU PURCHASED THE OBLIGATION OR ISSUED THE OBLIGATION THAT WAS WAITING TO BE AMORTIZED UNTIL THE FIRST PRINCIPAL PAYMENT, AND IT SHOULD HAVE BEEN AMORTIZED FROM ISSUANCE. SO AGAIN, NOT A SIGNIFICANT IMPACT, BUT DOES THAT EXPLAIN IT? IT DOES. THANK YOU. EXCELLENT. UM, I DO WANNA FOCUS ON THE NO DIFFICULTIES OR DISAGREEMENTS WITH MANAGEMENT. YOU HAD A SIGNIFICANT CHANGE IN YOUR FINANCIAL MANAGEMENT. UM, AND WE HAVE SEEN THAT CAUSE SIGNIFICANT DELAYS IN AUDITS. AND THERE WAS A, WE STILL WERE ABLE TO ISSUE THE AUDIT WITHIN A NORMAL TIMEFRAME. AND I'M SURE NOW WITH NEW LEADERSHIP THAT WE'LL GET BACK INTO THAT DECEMBER ISSUANCE AND THAT NOVEMBER ISSUANCE TIMELINE. OKAY. UM, AND WE DO APPRECIATE MANAGEMENT BEING TRANSPARENT WITH US AND WORKING WITH US TO COMPLETE THE AUDIT. THE COMPONENTS OF YOUR, UH, ANNUAL COMPREHENSIVE FINANCIAL REPORT INCLUDES AN OPINION ON YOUR BASIC FINANCIAL STATEMENTS AND EACH MAJOR FUND OF THOSE FINANCIAL STATEMENTS AND AGGREGATED REMAINING FUND BALANCES. WE ALSO DO AN IN RELATION TO OPINION ON YOUR COMBINING AND INDIVIDUAL FINANCIAL INFORMATION THAT'S AT THE BACK OF THE ANNUAL REPORT TO MAKE SURE THAT IT'S CONSISTENT WITH THOSE OPINIONS. AND WHEN IT COMES TO YOUR REQUIRED SUPPLEMENTARY INFORMATION, WHICH INCLUDES YOUR MANAGEMENT'S DISCUSSION AND ANALYSIS, WHERE THEY TALK ABOUT WHAT HAPPENED DURING THE YEAR, WE REVIEW THAT INFORMATION TO MAKE SURE IT'S CONSISTENT WITH YOUR FINANCIALS. BUT WE DO NOT OPINE ON IT 'CAUSE WE'RE NOT GOING TO GO AND TEST TO SEE IF THIS HAPPENED AND THIS HAPPENED AND ACTUALLY OCCURRED. OKAY. UM, WE DID ISSUE AN UNMODIFIED CLEAN OPINION ON YOUR FINANCIAL STATEMENTS, WHICH IS THE HIGHEST LEVEL OF ASSURANCE A CPA FIRM CAN PROVIDE AS A RESULT. UM, WE PERFORMED THE AUDIT IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS. WE IDENTIFIED NO MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL. WE IDENTIFIED NO MATTERS OF NON-COMPLIANCE. IN THE PRE PRIOR FISCAL YEAR. YOU DID RE OVERSTEP THE SINGLE AUDIT THRESHOLD, BUT THAT DID NOT OCCUR AGAIN IN FISCAL YEAR 2024. SO WE DID NOT ISSUE A SINGLE AUDIT REPORT THIS YEAR WITH YOUR HIGHWAY USER REVENUE FUND COMPLIANCE. WE ISSUE AN EXAMINATION REPORT TO MAKE SURE THAT YOU'RE IN COMPLIANCE WITH ARIZONA REVISED STATUTES. TITLE 28, CHAPTER 18. ARTICLE TWO. WE HAD NO FINDINGS. WE SELECTED A SAMPLE OF DISBURSEMENTS, BOTH PAYROLL AND NON-PAYROLL DISBURSEMENTS TO DETERMINE YOUR COMPLIANCE. AND AS I SAID, NO FINDINGS OR UNUSUAL ENTRIES IDENTIFIED WITH YOUR ANNUAL EXPENDITURE LIMITATION REPORT. WE NOTED THE VOTER APPROVED ALTERNATIVE EXPENDITURE LIMITATION OF $85,819,620. THE AMOUNT SUBJECT TO THE LIMITATION WAS $70,029,896. SO THE CITY IS WELL WITHIN THEIR LIMIT, UM, WITHIN THAT LIMIT OF THE EXPENDITURE WITHIN $5 MILLION. THAT IS OUR PRESENTATION OF THE AUDIT REPORTS, OPINIONS AND EXAMINATION REPORTS FOR THE CITY OF SEDONA FOR THE FISCAL YEAR 2024. ARE THERE ANY OTHER QUESTIONS ON OUR PRESENTATION? YEAH, I NEED A LITTLE EDUCATION HERE ON THE, THE, THE NEXT TO LAST SLIDE THAT, UH, YOU JUST HAD UP THERE. SO WHEN WAS THERE A VOTER APPROVED ALTERNATIVE EXPENDITURE LIMITATION PUT IN PLACE OF 85 MILLION. AND HOW DOES THAT RELATE TO THE FACT THAT WE'RE ON HOME RULE? DON'T HAVE A-P-B-A-I, I DON'T UNDERSTAND WHERE THAT 85 MILLION NUMBER COMES FROM. CORRECT. WE COULD BRING UP THE ELR. YEAH. MAYOR AND COUNCIL. THAT'S HOME RULE. THAT IS THE HOME RULE. YEAH. THAT IS THE HOME RULE NUMBER. THAT'S WHAT WE, [01:30:01] HOME RULE IS THE ALTERNATIVE EXPENDITURE LIMITATION EQUALS HOME RULE. HOME RULE IS A COLLOQUIAL TERM. THAT'S THE OFFICIAL TERM. OKAY. BUT THE 85 MILLION, I MEAN, NO, NOBODY, THERE WASN'T AN 85 MILLION ON THE BALLOT. SO THAT'S JUST, THAT HAPPENS TO BE WHAT WE APPROVED. YEAH. UNDER HOME RULE, THAT'S WHAT WE APPROVED. OKAY. UNDER EVERY YEAR UNDER HOME RULE, WE ESTABLISH THE NEW NUMBER. THAT'S THE MOST RECENT NEW NUMBER. RIGHT. BUT WHEN IT THAT, BUT WHEN IT SAYS VOTER APPROVED NUMBER AND IT SAYS 85 MILLION, IT MAKES IT SOUND LIKE THE VOTERS APPROVED 85 MILLION. AND THEY DIDN'T. THEY, THEY, THEY AUTHORIZED US TO DECIDE A NUMBER AND WE DECIDED 85 MILLION WE BE IN COUNCIL. OKAY. THANK YOU VERY MUCH. THANK YOU. THANK YOU FOR THAT. WOULD IT BE MORE CLEAR IF WE HAD, BASED UPON VOTER APPROVED OF THE HOME RULE, THE ALTERNATIVE EXPENDITURE LIMITATION WAS, SURE. OKAY. I CAN MAKE THAT CORRECTION GOING FORWARD. THANK YOU FOR THAT. YEAH. BUT, AND AGAIN, NO, NO BIG DEAL. JUST TRYING TO UNDERSTAND AND, AND CONGRATULATIONS RENEE AND BARBARA ON A GREAT, UH, REPORT. THANK YOU, ALYSSA. ANY QUESTIONS? VICE MAYOR? I WOULD JUST SAY THAT, YOU KNOW, THE NEXT QUESTION WOULD BE, IF OUR BUDGET IS OVER A HUNDRED MILLION, HOW DID WE PROVE 85 MILLION? HOW DO THOSE NUMBERS WORK TOGETHER? BUT NOT EVERYTHING IS WITHIN THE ALTERNATIVE EXPENDITURE LIMIT ONLY APPLIES TO CERTAIN THINGS. OKAY. DEREK, PETE COMMENTS? OKAY. JUST THE QUESTIONS RIGHT NOW. OKAY. WE COMMENT. OKAY. WE'LL GO BACK TO BRIAN FOR COMMENTS. ALREADY DONE IT. OKAY. MELISSA, I MEAN, MY ONLY GENERAL COMMENT IS CONGRATULATIONS FOR HAVING DONE ALL THIS WORK. AND I'M LOOKING AT RENEE, 'CAUSE I KNOW , I KNOW BARBARA'S ALREADY TAKEN HERSELF OUT OF THE RUNNING . SO, UM, THANK YOU. AND, AND THANK YOU AS WELL, UM, JEAN, FOR HAVING DONE ALL THE WORK THAT IS REQUIRED FOR US TO BE CERTIFIED IS CLEAN. THANK YOU. THANKS, MAYOR. I, YOU KNOW, I ACTUALLY READ THIS REPORT, , AND IT'S AMAZING WHAT YOU CAN LEARN MM-HMM . BECAUSE I'VE BEEN READING THEM FOR YEARS MM-HMM . EVEN BEFORE I WAS ON COUNCIL AND SOMETHING NEW IN, IN THE WAY IT'S PRESENTED OR IN THE LANGUAGE IS ALWAYS, UM, SOMETHING THAT COMES UP. SO I LEARNED A LOT JUST THIS TIME. HAD A LOT OF QUESTIONS ABOUT DIFFERENT ITEMS. IT LOOKED LIKE IT WAS PRESENTED SLIGHTLY DIFFERENTLY THAN LAST YEAR. WAS IT EXACTLY THE SAME? I HAD THE SAME, NO, KATHY HAD THE SAME REACTION. IT'S, IT'S SET UP THE SAME WAY THAT IT ALWAYS IS. WE START WITH, UH, THE LETTER OF TRANSMITTAL, THE AUDITOR'S OPINION, THE MDNA BASIC FINANCIALS, FONTS WOULD'VE BEEN DIFFERENT. THE FONTS MIGHT'VE BEEN DIFFERENT. THE FONT. AND THAT'S THE LEVEL OF DETAIL THAT WE ARE PAYING ATTENTION TO. I BELIEVE THAT. OKAY. AND THANK YOU RENEE FOR THANK YOU. KEEPING US TOGETHER DURING OUR TRANSITION. YES, YOU'RE WELCOME. OKAY. UH, PETE, DID YOU SAY YOU HAD COMMENTS BROUGHT, PETE, YOU DO HAVE COMMENTS? YEAH, I'M, I'M NOT GONNA ADD MUCH MORE. I, I DID WANNA THANK OUR CITY MANAGER AND BARBARA AND YOUR PREDECESSORS AND YOUR POSITIONS FOR GETTING US HERE, RENEE. THANK YOU. AND, AND THE REST OF THE PEOPLE THAT HAVE TO DEAL WITH GETTING THROUGH THESE THINGS, UH, A CLEAN OPINION IS, YOU KNOW, IT'S REMARKABLE, UH, AND IS WORK THAT YOU ALL SHOULD JUST BE TREMENDOUSLY PROUD OF. VERY MUCH SO. SO KUDOS TO YOU ALL. I WILL, UH, UH, EN ENGINE. THANKS FOR, FOR DOING THE WORK. I CAN'T IMAGINE HOW MANY HOURS IT TAKES TO GET THROUGH THOSE. UH, I DO WANNA JUST CALL OUT MY FAVORITE SECTIONS. SO WHEN I, THE CITY MANAGER AND I WERE ACTUALLY TALKING, UH, MONDAY, YESTERDAY, AND THAT'S THE FIRST THING I LOOK THROUGH. AND SHE AS WELL, YOU, YOU FIRST, YOU GO THROUGH THAT LETTER REAL QUICK AND YOU SEE THE OPINIONS AND THAT'S WHERE YOU START. AND IT'S BEAUTIFUL TO SEE THAT. AND I REALLY WANNA, UH, CALL THAT OUT. UM, I JUST ALSO WANNA THROW IN THERE THAT SOME OF MY FAVORITE SECTIONS IN THE REPORT ARE AT THE VERY END, RIGHT ON THE REPORT, PAGES 1 34 THROUGH 1 36. SOME STA USED TO BE THE STATISTICAL SECTION AND THE HISTORY. IT'S JUST, CALL IT, AND IT'S TRIMMED DOWN A LITTLE BIT, SADLY, BUT, UM, . BUT THERE'S REALLY GOOD DATA IN THERE. REALLY GOOD DATA IN THERE. YEAH. SO THANK YOU VERY MUCH. SO I, UM, YES, I TRULY APPRECIATE, UH, THE AUDIT. I APPRECIATE [01:35:01] THE ANNUAL COMPREHENSIVE FINANCIAL REPORT. I HAVE SAID IT BEFORE, I THINK LAST YEAR WE TALKED ABOUT THIS AND I THINK THAT THE FIRST 10 PAGES OF THE, THE AFER, UH, ANYBODY WHO'S LOOKING FOR LIKE SEDONA 1 0 1, JUST SORT OF THE INTRODUCTORY UNDERSTAND SEDONA, THAT'S WHERE IT IS. SO DON'T BE INTIMIDATED BY THE ONE HUNDRED AND THIRTY SEVEN THIRTY EIGHT PAGES THAT IT IS. THE FIRST 10 ARE JUST REALLY A GOOD READ. UM, SO I MEAN, IT'S ALL A GOOD READ, BUT YOU GET MY POINT. BUT I'M ALSO, I'M JUST VERY, I'M VERY, I DON'T LIKE USING THE WORD PRIDE, BUT, UH, BUT I AM PROUD OF SEDONA FOR THIS CLEAN AUDIT. THIS IS A GREAT AUDIT. IT'S OUTSTANDING. THE RESULTS OF THIS AUDIT AND HATS OFF TO STAFF FROM AT EVERY LEVEL FOR THAT, UM, PRESENT STAFF, PAST STAFF, I MEAN, AND TRANSITIONS HAVE BEEN SO SMOOTH. IT'S JUST REALLY WONDERFUL. I LOVE THE LEVEL OF DETAIL THAT'S IN HERE THAT, YOU KNOW, ANYBODY WHO'S INTERESTED CAN READ THESE DOCUMENTS AND GET THAT THE CITY'S TOTAL DEBT DECREASED BY 6.7 MILLION. AND ALSO AT THE SAME TIME, UNDERSTAND THAT SEVEN POSITIONS WERE ADDED TO ADDRESS STAFFING GAPS. I MEAN, THIS IS THE STUFF THAT YOU GET IN THIS, AS I SAID, IT'S REALLY SEDONA 1 0 1, BUT IT, ALL OF THIS INFORMATION IS IMPRESSIVE. I'M VERY GRATEFUL, UM, TO HAVE THIS. AND I THANK YOU. CONGRATULATIONS. I COULDN'T SAY MORE EXCEPT A LITTLE BIT MORE JUST JUST A LITTLE BIT MORE JUST TO THANK RENEE FOR ALL THE HARD WORK. I MEAN, THIS TRANSITION COULD HAVE GONE A DIFFERENT WAY AND IT DIDN'T, WE WERE VERY FORTUNATE TO FIND BARBARA WHEN WE DID, AND THE TEAMWORK WAS AMAZING. AND I JUST APPRECIATE, I KNOW, RENEE, YOU PUT A LOT OF WORK INTO IT BEFORE BARBARA CAME HERE. I'M SURE JUST BRINGING BARBARA ON BOARD, SO I JUST APPRECIATE OF COURSE. I APPRECIATE BARBARA AS WELL. SO, BUT RENEE, YOU REALLY HELD IT ALL TOGETHER FOR US. AND I JUST WANTED TO SAY AN EXTRA THANK YOU. THANK YOU VERY MUCH. AND I DO WANNA THANK MY TEAM. THEY DID AN AMAZING JOB. AND ALSO CLA, THEIR MOTTO IS, WE'LL GET YOU THERE. THEY DID. THEY GOT ME THERE. . THEY REALLY DID. NOT ONLY, I MEAN, THEY ALSO PROVIDED GUIDANCE AND MENTORSHIP THAT I WASN'T EXPECTING. AND IT WAS WONDERFUL TO EXPERIENCE THAT. I'LL TAKE THAT WITH ME FOR THE REST OF MY CAREER. SO, OKAY. THANK YOU, RENEE. GREAT. THANK YOU. ALRIGHT, ANYTHING ELSE BEFORE WE MOVE ON? OKAY. YOU WANNA TAKE A BREAK NOW? OKAY. YES. OKAY. WHY DON'T WE TAKE 20 MINUTES, WE'LL BE BACK AT, UH, 22 MINUTES. SIX 30. OKAY. WE'RE BACK. ITEM [8.d. AB 3131 Discussion/possible action regarding approval of a contract for professional services with Kimley-Horn and Associates, Inc., for the Transit Maintenance and Operations Center Project, in the amount of $1,872,014.00.] D, AB 31 31, DISCUSSION, POSSIBLE ACTION REGARDING APPROVAL OF A CONTRACT FOR PROFESSIONAL SERVICES WITH KIMLEY HORNE AND ASSOCIATES INC. FOR THE TRANSIT MAINTENANCE, UH, MAINTENANCE AND OPERATIONS CENTER PROJECT IN THE AMOUNT OF $1,872,014. AND THIS WILL BE KURT HARRIS. UH, GOOD EVENING COUNCIL MAYOR, VICE MAYOR. UM, THANK YOU FOR, UH, US BEING HERE. WE, UM, WE HAVE OUR PRESENTATION FOR PT OH ONE, THE TRANSIT, UM, MAINTENANCE. UM, JONATHAN DID A GREAT JOB. HE'S PROJECT MANAGING THIS, UH, MOVING THIS FORWARD. WE HAVE IAN HERE TO ANSWER QUESTIONS ON THE PROCUREMENT PROCESS. AND IF, IF YOU HAVE FURTHER QUESTIONS, WE HAVE THE ARCHITECT HERE AS WELL TO ANSWER SPECIFIC QUESTIONS. WE'RE JUST GONNA GO THROUGH THE POWERPOINT OF HOW WE CAME TO THE SELECTION PROCESS FOLLOWING THE FEDERAL FDA REQUIREMENTS, UH, FOR PROCUREMENT. AND THEN, UH, THE LAST THREE SIDES ARE GONNA BE ABOUT MOVING FORWARD JUST OF, UH, EDUCATION FOR Y'ALL. OKAY, JONATHAN, WE'LL GO AHEAD AND START, AND THEN IAN WILL TAKE OVER. THANK YOU. YEP. UH, YOU JUST TAKE IT FROM HERE. GOOD EVENING, MAYOR. COUNCIL IAN KRA, PROCUREMENT OFFICER. YES, SIR. AND THAT IS, UH, PAGE 4 72 ON YOUR PACKET. OH, ALRIGHT. THAT'S WHAT PAGES, I'LL GIVE YOU A MOMENT. THANK YOU. THANK YOU. THERE YOU GO. EXCELLENT. SO, UH, JUST KIND OF BEFORE I DIVE INTO THIS PROCESS AS IT'S SPECIFIC TO THIS PROJECT, I WANTED TO TAKE THE OPPORTUNITY TO EXPLAIN, UM, WE'VE RECEIVED SOME QUESTIONS ABOUT, UH, THE PROCUREMENT PROCESS AND, AND YOU KNOW, WHY, UH, POTENTIALLY THERE WERE NO COSTS INVOLVED IN, IN THE SELECTION PROCESS. AND THOSE ARE GREAT QUESTIONS. IT'S NOT LOST ON ME THAT EVERY PERSON IN THE PUBLIC DOESN'T UNDERSTAND. THERE'S, UH, VERY STRICT REQUIREMENTS HANDED DOWN FROM THE FEDERAL GOVERNMENT AND FROM THE STATE OF ARIZONA. UM, SO JUST TO KIND OF, UH, GO OVER THAT IN GENERAL, BEFORE THE CITY COULD RELEASE AN RFQ, UH, JONATHAN AND HIS TEAM HAD TO GET THE RFQ APPROVED BY THE ARIZONA DEPARTMENT OF TRANSPORTATION. [01:40:02] UH, THEY WERE REVIEWING THAT FOR COMPLIANCE ITEMS TO ENSURE THAT THERE'S NO REASONS FOR THE FEDERAL GOVERNMENT GOVERNMENT TO COME BACK LATER ON AND KIND OF TAKE THAT MONEY BACK FROM THE CITY. UM, ONCE THAT WAS COMPLETED, THE CITY UNDERTOOK AN INDEPENDENT COST ESTIMATE. THIS IS ALSO A FEDERAL REQUIREMENT THAT WE COMPLETE THAT PRIOR TO MOVING FORWARD WITH AN RFQ. SO ONCE WE, UH, COMPLETED OUR INDEPENDENT COST ESTIMATE, WE PROCEEDED WITH THE RFQ AS REQUIRED BY TWO CFR PART 200 AND TITLE 34 OF THE ARIZONA REVISED STATUTES. ACTUALLY, IN THIS CASE, UH, THE FEDERAL REQUIREMENTS GIVE WAY TO THE MORE STRICT, UH, REQUIREMENTS WHEN WE GO TO, UH, UH, PROCUREMENT PROCESS. AND THOSE WERE, UH, IN, IN THE ARIZONA REVISED STATUTES. SO WE FOLLOWED THOSE TO THE LETTER. UM, IN THE ARIZONA REVISED STATUTE, IT DOES PROHIBIT AN AGENT OR THE SELECTION COMMITTEE FROM REQUESTING OR CONSIDERING FEES, PRICE HOURS, OR ANYTHING LIKE THAT DURING THE SELECTION PROCESS. UM, KIND OF THE HISTORY BEHIND THAT IS THE FEDERAL GOVERNMENT ADOPTED BACK IN THE SEVENTIES, A QUALIFICATIONS BASED SELECTION PROCESS FOR ARCHITECTS AND ENGINEERS. THAT WAS KNOWN AS THE BROOKS ACT OF 1972. AND THAT KIND OF, UH, CONTINUED ITS MOMENTUM INTO STATE LAW. UH, ALL, UH, I THINK 46 STATES OF IN THE COUNTRY HAVE ADOPTED THAT METHODOLOGY, AND THAT IS HOW TYPICALLY ARCHITECTURE AND ENGINEERING SERVICES ARE, UH, PROCURED. IN ADDITION TO THAT, THE, UH, ARIZONA REVISED STATUTES REQUIRE THAT WE ADVERTISE IN A LOCAL NEWSPAPER, UH, AT LEAST TWICE CONCURRENTLY. WE DID THAT IN THE RED ROCK NEWS. WE DID GO BEYOND THAT STATUTE, AND WE'LL TALK ABOUT THAT A LITTLE BIT LATER. UM, ONE OTHER IN INTERESTING KIND OF, UH, RESTRICTION POTENTIALLY TO THIS PROCESS IS THAT IF THE CITY, UM, STARTS NEGOTIATIONS ON A PRICE PROPOSAL WITH A FINALIST AND WE TERMINATE THOSE NEGOTIATIONS, THERE'S NO ABILITY FOR THE CITY TO THEN GO BACK TO THAT FINALIST, UM, THAT IS ALSO SPECIFIED IN THE ARIZONA REVISED STATUTE. SO, JUST SOME KIND OF FRAMEWORK BEFORE WE DIVE INTO THIS. I KNOW THAT MAY BE A LITTLE BIT TO DIGEST, BUT JUST WANTED TO AT LEAST GET OUT THERE THAT THERE ARE MULTIPLE SETS OF REGULATIONS THE CITY HAD TO FOLLOW BECAUSE WE DID, UH, RECEIVE FEDERAL FUNDS FOR THIS PROJECT. SO TO KIND OF DIVE INTO WHAT THE CITY DID, UH, OUR REQUEST FOR QUALIFICATIONS WAS ISSUED ON JULY 22ND. WE ADVERTISED THAT ON OUR E-PROCUREMENT WEBSITE, UH, AS WELL AS THE CITY'S WEBSITE, RED ROCK NEWS AS STATUTORILY REQUIRED, THE SEDONA SHUTTLE.COM, UH, AZT.ORG, AND UH, S WTA.ORG. SO, IN ADDITION TO OUR REQUIREMENTS, WE WANTED TO MAKE SURE WE GOT THE WORD OUT TO ALL OF THE FOLKS WHO WOULD BE INTERESTED IN THIS PROJECT. UM, AS A RESULT, WE HAD, UH, 61 FIRMS DOWNLOAD THE RFQ DOCUMENT. UH, 34 FIRMS PARTICIPATED IN OUR PRE-SUBMIT MEETING. UM, AND THEN WE ULTIMATELY ENDED UP WITH FOUR, UH, STATEMENTS OF QUALIFICATIONS FROM, UH, GABRIEL LAURENT ARCHITECTS, GH TWO ARCHITECTS, HDR INC, KIMLEY HOR AND ASSOCIATES. UM, YOU MAY LOOK AT THE NUMBERS FROM OUR PRE-SUBMIT AND WONDER, WELL, WHAT HAPPENED THERE. A LOT OF TIMES SUB CONSULTANTS WILL ATTEND THE PRE-SUBMIT MEETING ALONG WITH THE PRIME FIRM WHO'S GOING TO WORK WITH THE CITY. SO, UH, THAT WAS KIND OF EXPECTED. THERE WERE A FEW, UH, OTHER INTERESTED FIRMS TO SUBMIT ON THIS THAT DID NOT GET THE TIME TO, UH, SUBMIT. SO, DO YOU EVER, CAN I HAVE A QUESTION? YES. DO YOU EVER REACH OUT TO THESE FIRMS THAT DIDN'T PARTICIPATE TO FIND OUT THE REASONS WHY? CERTAINLY, ABSOLUTELY. UM, WE'VE HAD A FEW, NOT, UH, SPECIFICALLY ON THIS PROJECT, BUT WE'VE HAD A FEW PROJECTS, UH, PROCUREMENT PROCESSES WHERE THERE WERE FOLKS WHO DIDN'T BID THAT WE EXPECTED TO OR DIDN'T SUBMIT STATEMENT OF QUALIFICATIONS. AND WE'RE VERY INTERESTED. WE WANT FOLKS TO, UH, YOU KNOW, UH, COME AFTER OUR BUSINESS. WE WANT COM COMPETITION FOR THE CITY'S BUSINESS. THAT'S, UH, ONE OF MY MAIN FOCUSES IN MY ROLE. SO CERTAINLY, UH, UH, WE'VE DONE THAT HISTORICALLY IN THIS CASE, A COUPLE ACTUALLY REACHED OUT TO ME AND JUST SAID, HEY, I I, WE COULDN'T, WE COULDN'T SWING THIS ONE. SO IS THERE ANY COMMON, ARE THERE ANY COMMON THEMES? NO, IT'S REALLY PROJECT SPECIFIC. UH, SOMETIMES THERE'S, YOU KNOW, IT COULD BE ITEMS THAT, UH, IMPACT THEIR SCHEDULE INTERNALLY. UM, FOR EXAMPLE, I'VE REACHED OUT TO SOME PROFESSIONAL SERVICES PROVIDERS ON PREVIOUS RF QS ASKED, HEY, YOU KNOW, THIS WAS OUT AND JUST DIDN'T ALIGN WITH THEIR SCHEDULE AND THEIR WORKLOAD. YOU KNOW, UM, OTHER, OTHER TIMES, UH, YOU KNOW, UH, WE HEAR FEEDBACK THAT MAY BE MISINTERPRETING SOME OF THE CITY'S, UH, SOLICITATION DOCUMENTS. SO IT'S AN OPPORTUNITY FOR ME TO CLARIFY WHAT THAT ACTUALLY MEANS AND, AND MAKE SURE THAT THEY UNDERSTAND THAT FOR FUTURE OPPORTUNITIES. THANK. AND WHAT ABOUT THE, OH, YOU HAVEN'T GOTTEN THERE YET, BUT WHAT ABOUT THE PERCENTAGES THAT YOU, YOU KNOW, YOUR CRITERIA AND THE PERCENTAGES THAT ARE AWARDED TO THE VARIOUS [01:45:01] SECTIONS. ARE THOSE SOMETHING THAT ARE GOVERNED BY ANY EXTERNAL FACTORS, OR ARE THEY DONE WITHIN YOUR, UH, CONTROL? YEAH, SO LARGELY THOSE ARE, UH, UP FOR, UH, STAFF TO DETERMINE AS TO WHAT'S IMPORTANT TO THE PROJECT. OF COURSE, AS I MENTIONED EARLIER, ONE OF THEM WE COULDN'T CONSIDER IS PRICE. RIGHT? UH, BUT YEAH, LARGELY IT, IT IS UP TO, UH, STAFF TO DETERMINE WHAT'S IMPORTANT IN THAT PRO UH, PROJECT, AND THEN PRIORITIZE THOSE BY WEIGHTING THE RESPECTIVE CRITERIA. AND IS IT BECAUSE YOU'RE KIND OF THE INDEPENDENT PERSON, RIGHT? CORRECT. DO YOU MAKE SURE THERE'S NO BIAS IN THOSE? YES, THAT'S ABSOLUTELY ONE OF MY, UH, MAIN GOALS IS TO ENSURE THAT THE CITY IS CONDUCTING FAIR, TRANSPARENT SOLICITATION PROCESSES AND ULTIMATELY OBTAINING THE BEST VALUE THAT WE CAN THROUGH THOSE. THANK YOU. YOU'RE WELCOME. THANK YOU, SIR. SO, MOVING ON, THERE ARE THOSE CRITERIA THAT WE HAD JUST DISCUSSED. UM, AND ONE THING I WANTED TO TOUCH ON IS THE CITY WAS VERY FORTUNATE TO NOT EVALUATE THESE STATEMENTS OF QUALIFICATIONS JUST BY OURSELVES. UH, AS YOU GUYS ARE AWARE, THIS IS A REGIONAL OPERATIONS FACILITY, AND WE DID WANT TO INVITE AS MANY OF OUR REGIONAL PARTNERS AS FEASIBLE TO HELP US WITH THIS. THERE WERE A FEW OTHERS THAT COULDN'T ACTUALLY MAKE THE EVALUATION TEAM, BUT WE REALLY DO APPRECIATE, UH, OUR CURRENT TRANSIT PARTNER, UH, ASSISTED AND ALSO MOUNTAIN LINE, A REPRESENTATIVE FROM THE FLAGSTAFF TRANSPORTATION, UH, ORGANIZATION. SO AFTER REVIEWING THOSE, THE TEAM, UH, UH, COMBINED SCORES, UH, ENDED UP WITH A RANKING AND, UH, KIMLEY HORNE AND ASSOCIATES WAS THE HIGHEST RANKED RESPONDENT STAFF, UH, THEN MET WITH THE FINALIST, HAD SOME SCOPING DISCUSSIONS TO FURTHER CLARIFY SCOPE AND REQUESTED A PRICE PROPOSAL FROM, UH, THE FIRM. AND I BELIEVE THE NEXT SLIDE, WE HAVE A BREAKDOWN OF KIND OF HOW THAT SCORING SHOOK OUT. WE'RE VERY FORTUNATE WE DIDN'T GET ANY KIND OF, UH, I DUNNO HOW TO SAY THIS, MAYBE RIDICULOUS, UH, STATEMENTS OF QUALIFICATIONS ALL WERE REASONABLY QUALIFIED FIRMS. UH, YES, SIR. YOU HAVE ONE QUESTION FOR YOU FROM COUNCIL FOLTZ. OH, GO AHEAD AND FINISH WHAT YOU WERE SAYING AND THEN I'LL ASK. ABSOLUTELY. SO, UH, JUST TO SAY, YOU KNOW, WE WERE FORTUNATE IN GETTING, UH, QUALITY RESPONSES FROM OUR, UH, RESPONDENTS AND I'LL, I'LL TAKE YOUR QUESTION. GREAT, THANK YOU. SO THERE'S SENSITIVITY FROM THE DAAS SENSITIVITY IN THE COMMUNITY THAT KIMLEY HORN JUST CONTINUES TO SEEM TO TO COME OUT ON TOP, RIGHT? SURE. UM, CAN YOU COMMENT ON, UH, THE SELECTION TEAM, UM, KIND OF, YOU KNOW, I THINK THAT WHO, WHO PUT THEM OVER THE TOP ULTIMATELY? I, I, YEAH. I MEAN, IF I UNDERSTAND YOUR QUESTION, ARE YOU, ARE YOU ASKING WHETHER OR NOT, MY, MY UNDERSTANDING IS, IS THAT OUR INDEPENDENT PARTNERS IN THE EVALUATION ACTUALLY SCORED KIMLEY HORN HIGHER THAN OUR OWN STAFF DID. AND I, WHAT I'M GETTING AT IS, IS THERE'S THIS PERCEIVED VIEW BY SOME FOLKS THAT, OH, WE JUST WANNA PUT EVERYTHING OVER TO KIMLEY HORN BECAUSE GEE, WE KNOW THEM AND THAT'S CONVENIENT. AND I JUST WANT THE COMMUNITY TO KNOW THAT THERE'S A WHOLE HECK OF A LOT OF PROPRIETY TO THIS PROCESS. AND ACTUALLY THAT IT WAS THE FOLKS FROM MOUNTAIN LION AND, UH, MV RIGHT. THAT ACTUALLY SCORED KIMLEY HIGHER THAN OUR OWN STAFF DID. THAT'S MY UNDERSTANDING. THAT WOULD BE ACCURATE. YES, SIR. AND, UM, YOU KNOW, JUST KIND OF AS AN ASIDE, I'VE BEEN DOING THIS FOR A WHILE. THIS WOULDN'T BE THE FIRST COMMUNITY OR CITY COUNCIL THAT, UH, HAD A CONCERN ABOUT A SPECIFIC, A E FIRM HAVING A LARGE AMOUNT OF BUSINESS. UM, SO I'M SENSITIVE TO THOSE AND, AND THAT IS WHY IT IS IMPORTANT FOR THE CITY TO HAVE TRANSPARENT AND FAIR PROCESSES TO SELECT THESE, THESE, UH, CONSULTANTS OR CONTRACTORS FOR CONSTRUCTION. GREAT. THANK YOU. YES, SIR. THANK YOU. MAYOR. ANY OTHER QUESTIONS BEFORE HE START? I, I HAVE ANOTHER QUESTION. YES, MAYOR, AGAIN TO, FOR CLARIFICATION. SO WHEN YOU, WHEN THE EVALUATION COMMITTEE COMES UP WITH THEIR NUMBERS, YOU ARE PROHIBITED FROM NEGOTIATING WITH MORE THAN ONE AWARD, RIGHT? FINALIST? CORRECT. SO YOU COULDN'T PLAY ONE AGAINST THE OTHER AND RIGHT. LIKE YOU MAY BE ABLE TO IN AN RFP SITUATION, RIGHT? THAT'S CORRECT. THANK YOU. YOU'RE WELCOME. OKAY, SO WE'LL MOVE ON TO THE NEXT SLIDE. HERE YOU CAN SEE KIND OF A BREAKDOWN OF SOME VARIOUS, UH, COST INFORMATION. THE, UH, TOP ROW, YOU'LL [01:50:01] SEE THE CITY'S INDEPENDENT COST ESTIMATE. THAT WAS, UM, YOU KNOW, CONDUCTED IN ACCORDANCE WITH THE FEDERAL REQUIREMENTS THAT CAME OUT TO BE APPROXIMATELY 10.5% OF THE ANTICIPATED CONSTRUCTION COST. UM, THE INITIAL FEE THAT WE RECEIVED WAS SLIGHTLY OVER OUR, UH, INDEPENDENT COST ESTIMATE OR ICE. IF I USE THAT, IT IS ALSO REFERRED TO AS AN ICE, AND I APOLOGIZE. UM, SO, UH, THAT LED TO PUBLIC WORK STAFF, UH, REVIEWING THE SCOPE OF WORK AND TRYING TO UNDERSTAND IS WHAT SCOPE CONSISTENT WITH WHAT THE CITY HAS PLANNED FOR THE SITE, UH, USING THEIR EXPERTISE TO, TO, YOU KNOW, MAKE SURE THAT WE'RE NOT, UM, I DON'T KNOW, MAYBE OVERDESIGNING A, A FACILITY OR SOMETHING LIKE THAT. SO AFTER THEIR, UH, REVIEW, THEY SENT BACK COMMENTS AND FEEDBACK TO KIMLEY HORNE AND ULTIMATELY ENDED UP WITH A FINAL NEGOTIATED CONTRACT FOR THE AMOUNT THAT'S HERE BEFORE YOU TONIGHT. AND WITH THAT, I WILL TURN IT OVER TO KURT OR MR. HOFFMAN TO ONE QUESTION BEFORE YOU DO. YES. MAY MAYOR, GO AHEAD OF THAT COST, BE THE $1,872,014. AM I UNDERSTANDING THIS CORRECTLY? THAT WE ANTICIPATE, UM, $720,000 FOR THAT DESIGN COST WILL COME BACK IN GRANT MONEY? YES. I, THERE IS A GRANT COMPONENT. I BELIEVE IT WAS IN THE AGENDA BILL. IT'S IN THE AGENDA BILL. YES. UM, I'M SORRY, I'M, I DON'T HAVE THAT ONE UP HERE. YEAH. OKAY. YEAH, I JUST WANTED TO GET THAT OUT THERE WITH THIS CONVERSATION AS WELL. NO, I APPRECIATE THAT. THANK YOU. TACK ONTO THAT. MAYOR, PLEASE. SO I HAD THE, A SIMILAR QUESTION TO COUNCILOR KINSELLA, THAT'S MY MATH IS CORRECT TODAY. IT'S NOT ALWAYS 38%, ROUGHLY, ROBERT, THAT'S LESS THAN OUR 85% NUMBERS WE LOVE FOR THE FEDERAL PROJECTS. ARE WE STILL HOPING FUTURE GRANTS WILL SUPPLEMENT THIS? DO WE SHOOT OURSELVES IN THE FOOT BY WRITING A CONTRACT? NO ONE ELSE WILL GIVE US A GRANT 'CAUSE WE'RE ALREADY PAYING FOR IT. YOU KNOW, ARE WE ALLOWED TO TAKE OTHER GRANT MONEY FOR SOMETHING THAT WE'VE COMMITTED OUR OWN MONEY TOO? SO THERE'S JUST SOME QUESTIONS ABOUT, I I CAN TAKE THAT. UM, MICROPHONE. COME ON IN, MIKE. HAVE A SEAT. THANKS. THANKS, JONATHAN. WELL, THE GOOD NEWS ON THAT COUNSELOR IS THE 53 39 GRANT, WHICH IS GIVING US THE 720,000 TOWARDS THIS PROJECT. UM, THAT'S, THAT CYCLE COMES UP EVERY YEAR. SO GIVEN THE ANTICIPATED TIMELINE FOR THIS PARTICULAR PART OF THIS PROJECT ENGINEERING AND DESIGN, THERE'S NOTHING PROHIBITING US FROM GOING BACK. I THINK IT WOULD BE IN JULY, TO REQUEST ADDITIONAL FUNDS TOWARDS THE ENGINEERING AND DESIGN. IN FACT, I'VE ALREADY TALKED TO THE GRANTS ANALYSTS THAT THAT WOULD BE OUR INTENTION. HIGHLY COMPETITIVE. IF WE GET IT, GREAT. IF NOT, THEN WE WOULD BUDGET ACCORDINGLY FOR THAT VARIANCE. SO, SO THERE IS NO, NO DISPLACEMENT SPENDING, WHATEVER THOSE WORDS ARE IN PROCUREMENT REGULATION WHERE ONCE YOU, WE, IT'S GONNA BE ABOUT TIMING BECAUSE, YOU KNOW, FEDERAL MONEY MOVES AT A SPEED THAT IS YET TO BE MEASURED. SO BY THE TIME YOU GET THAT PRELIMINARY AWARD, AND BY THE TIME YOU CAN DRAW DOWN THOSE FUNDS, UM, COULD REALLY, UH, LENGTHEN THE, THE TERM OF A PROJECT. SO, FOR EXAMPLE, THIS 720,000 WAS AWARDED TO US IN OCTOBER OF 2023. MEMORY SERVES. IT'S NOW AVAILABLE FOR US TO DRAW IT DOWN. SO THAT'S NOT AN EASY ANSWER, BUT, UM, THERE'S NOTHING SAYING WE COULD NOT APPLY FOR THAT, BUT IT WOULD SIGNIFICANTLY INCREASE THE LENGTH OF TIME, UH, FOR THIS PHASE OF THE PROJECT. SO, KATHY, I I, I JUST WANNA BE ABSOLUTELY CLEAR ON WHAT YOU SAID BEFORE THOUGH, BUT IF WE DID NEXT YEAR, GO INTO THAT JULY GRANT CYCLE AND GET, WE'RE SUCCESSFUL IN OBTAINING MORE FUNDING, IT WOULD APPLY TO COUNTER THIS $1,872,000 EXPENDITURE BE A REQUEST. YES. SO, OKAY. I JUST WANNA MAKE SURE THAT IT'S BEING APPLIED TO THAT. OKAY. THAT WOULD BE THE REQUEST. OKAY, THANK YOU. AND YEAH, THERE'S ARGUMENTS FOR THAT POST COVID ECONOMY. YOU KNOW, OUR ICE WAS A STICKER SHOCK, FRANKLY, RIGHT? BECAUSE, BECAUSE I GUESS IT'S JUST THAT IT'S NOT AGAINST FUTURE EXPENDITURES THAT MAY HAPPEN. I'M JUST TRYING TO CONTAIN IT INTO THIS COST. AND WHILE ON TOPIC, YOU KNOW, A SEPARATE GRANT ALSO, UH, I BELIEVE IS, [01:55:01] UH, THE CYCLE IS GOING TO BE, OR, OR THE APPLICATION IS DUE IN JULY. THAT WOULD BE FOR CONSTRUCTION. MM-HMM . COMPLETELY SEPARATE. U-S-D-O-T SIGNIFICANT LANDS GRANT, UH, WE INTEND TO GO OVER FOR THAT AS WELL. THAT'S A 85% FEDERAL, 15% LOCAL, UM, YOU KNOW, FOR ACTUAL CONSTRUCTION. SO WE'RE, WE'RE HOPING TO GET, UH, KEEP THE LOCAL SUBSIDY AS LOW AS POSSIBLE ON THIS ENTIRE PROJECT. THANK YOU. MM-HMM . OKAY, GO AHEAD. CONTINUE. I'LL JUST, WE'LL PLAY MUSICAL CHAIRS. PLAY MUSICAL CHAIRS. OH, VICE MAIL. BEFORE YOU GET INTO, DO YOU TURN IT OVER TO KURT? HOW, HOW, UM, STRINGENT IS OUR CONTRACT. SO IN OTHER WORDS, WE'RE ALWAYS LOOKING AT ADDITIONAL, UH, CHANGE AWARDS, CHANGE ORDERS, THINGS LIKE THAT, AND ALL THESE CONTRACTS AND IT GO UP AND UP AND UP AND UP. SO HOW TIGHT IS THE CONTRACT SO THAT WE AVOID THIS ONGOING ADDITION OF CHANGE ORDERS SO THAT AT 1.8, YOU KNOW, IF THEY BID 2.2, ARE THEY EXPECTING TO MAKE UP THE 400,000 AND CHANGE ORDERS DURING THE TERM OF THE CONTRACT? SO FOR, FOR MY PORTION OF THAT ANSWER IS, YOU KNOW, UH, THIS IS WHY IT'S IMPORTANT THAT WE CAREFULLY CONSIDER THE SCOPE OF THE CONTRACT BEFORE WE ENTERED INTO IT, AND WHY CURTIN, HIS TEAM DILIGENTLY WENT THROUGH THAT SCOPE AND ENSURED IT IS WHAT THE CITY NEEDS. UM, YOU KNOW, CHANGE ORDERS AND AMENDMENTS TO CONTRACTS HAPPEN. UM, I THINK THERE'S A, A DEFINITE NEED TO CONTROL THAT ARE CONTRACT IS AN INSTRUMENT THAT ALLOWS THE CITY TO CONTROL THAT. HOWEVER, YOU KNOW, IT'S, IT'S, IT'S DIFFICULT TO ANTICIPATE ANY FUTURE, UM, YOU KNOW, ADDITIONS TO THE PROJECT, CHANGES TO SCOPE. UH, THOSE TYPES OF THINGS COULD HAPPEN. HOWEVER, FROM MY UNDERSTANDING AND WORKING WITH KURT AND HIS TEAM, THEY'RE CONFIDENT IN THE SCOPE OF WORK THAT WE HAVE IN THIS CONTRACT. AND, AND I DON'T SEE ANY ISSUES, YOU KNOW, ARISING FROM IT. UH, I I THEY DO GOOD WORK. SO TRUST THAT. WE'LL, WE'LL REMEMBER THAT KURT . YES. AND I WANT TO CLARIFY THAT THIS IS AN A AND E ARCHITECT IN ENGINEERING. SO ONCE THE SCOPE IS PRETTY WELL DEFINED, THE LIKELIHOOD OF HAVING A CHANGE OF SCOPE FOR CHANGE ORDERS ARE FAR LESS THAN CONSTRUCTION. CONSTRUCTION. WHEN YOU'RE ACTUALLY IN THE DIRT AND YOU'RE MAKING THINGS OF, YOU BECOME ALL AWARE, THINGS CHANGE, UM, FROM, UH, BECOME SOIL NAILING MAY BECOME ROCK NAILING. AND THAT'S ALL THOSE UNKNOWNS THAT YOU HAVE TO FIGURE OUT. ONCE YOU'RE IN THE FIELD, YOU DO ALL YOUR DUE DILIGENCE AND INVESTIGATIONS, BUT IT STILL COMES BACK TO WHEN YOU'RE DIGGING IN DIRT. YOU MAY FIND SOMETHING THAT YOU DIDN'T KNOW THAT WAS THERE, AND THEN THAT CHARGES, YOU KNOW, CHANGE ORDERS, BUT NOT IN THE ARCHITECTURAL ENGINEERING IS PRETTY MUCH STRAIGHTFORWARD. THIS IS A LEVEL LAND. UM, WE AREN'T ANTICIPATING ANY BIG CHANGES, BUT IF IT HAPPENS, WE'LL KEEP YOU ABREAST. ANGIE, DID YOU HAVE ANYTHING YOU WANT TO ADD? FUNNY ENOUGH, I WAS GONNA SAY SOMETHING SIMILAR TO WHAT KURT, UH, SAID. SO GREAT. MIND, WELL DONE, KURT. JUST WANNA BE SURE YOU'RE COVERED. OKAY, CONTINUE. OKAY. SO WE KIND OF TALKED ABOUT HOW WE GOT HERE. SO NOW WE'RE GONNA MOVE ABOUT WHAT IT'S GONNA LOOK LIKE MOVING FORWARD. WHAT WE HAVE ON THE SCREEN HERE IS JUST A CONCEPTUAL VIEW. THIS HAS NO IDEA WHERE IT'S GONNA LAY OUT. THAT'S ALL BASED UPON WHAT OUR ARCHITECTS, ENGINEERS ARE GONNA COME OUT TO. UM, BUT REMEMBER, WE'RE BUILDING THIS FOR A 50 YEAR LIFE, SO IT'S SOMETHING SIMILAR LIKE THIS. WE WANT TO MOVE IT AS FAR AS BACK AS POSSIBLE. AND AS WE MOVE FORWARD, AND PLEASE REMEMBER, THIS IS ALL PART OF A FEDERAL TRANSIT THAT WE WANT TO ADD TO FOR OUR OWN INTERNAL FLEET MAINTENANCE AND MANAGEMENT MOVING FORWARD. THAT'S BEEN A BIG CHALLENGE FOR THE CITY. THIS IS SOMETHING THAT WE'RE GONNA LOOK FORWARD TO. AND YES, WE'RE GONNA PURSUE POTENTIAL GRANTS AND THAT AS WELL ONCE THIS PROJECT IS MOVING FORWARD. SO WE WANT TO GROW INTO THIS LOT AS TO BE LIKE OUR MAINTENANCE FAC, UH, FLEET MAINTENANCE FACILITY. UM, ANY QUESTIONS ON THIS? ON THIS SLIDE RIGHT NOW? OKAY. AND THEN WE HAD THIS PULLED TOGETHER AND THIS IS JUST, UH, SIMILAR SIZE, SIMILAR SCOPE, SIMILAR TIMING. IT WAS ONLY DONE IN 2021 OF SOMETHING THAT WE'RE ANTICIPATING HERE. IT'S ONLY CONCEPT ONLY [02:00:52] LOOKS LIKE A LOT OF PARKING LOT , PRETTY MUCH AS YOU CAN SEE. THE BIGGER ITEMS YOU WANNA SEE IS, IT'S LIKE THE FIRE DEPARTMENT WANTED AS WELL, WAS THEY WERE LOOKING AT 4 0 1 JORDAN, IS THAT DRIVE THROUGH FACILITY THAT THESE BIG TRUCKS OR BUSES, YOU'RE NOT TURNING A LOT SO THEY CAN DRIVE THROUGH THE FACILITY, FUEL, UH, RECHARGE WHATEVER, AND GET BACK INTO SERVICE AGAIN. WE'RE ANTICIPATING, UM, A SECURED FENCE AROUND THERE. A LOT OF IT IS TO MAKE IT OUR FACILITY SECURE, BUT THEN ALSO TO KEEP OUT THE CRITTERS AND ANIMALS THAT CAN CREATE DAMAGE TO VEHICLES THAT WE'RE ACTUALLY HAVING HERE AT CITY HALL. SO A LOT OF OTHER FEATURES, UM, THAT, THAT ARE SIMILAR IN HERE, BUT IT'S CONCEPT ONLY. UM, THE LAST SLIDE HERE, UNLESS THERE'S ANY MORE QUESTIONS, THIS JUST SHOWS AN EXAMPLE OF WHAT THE CONSTRUCTION TIMEFRAME'S GONNA BE. THE DESIGN DESIGN DESIGN, I'M SORRY, DESIGN . UM, I'M ALREADY MOVING FORWARD. , UH, BUT IT'S SIMILAR. IF YOU GO TO JANUARY, KIND OF SHOWS YOU WHERE WE'RE AT A 16TH MONTH, 17TH MONTH TIMEFRAME IN ORDER TO GO FROM A RAW, UH, RAW DESIGN INTO A FINISHED PRODUCT THAT WE CAN ACTUALLY GO OUT TO BID FOR. SO IT'S GONNA TAKE A PROCESS. ANY MORE QUESTIONS? OKAY. QUESTION, COMMENTS? WE'RE GOOD WITH COMMENTS. GO FOR IT. SO WE, WE'VE ALREADY HEARD A LITTLE BIT ABOUT THIS ACTUALLY FROM NINA BARLOW EARLIER, AND THAT I, I WOULD HOPE THAT AS WE'RE STARTING TO DO THIS DESIGN WORK, ESPECIALLY BECAUSE WE HAVE TO BRING IN A O AND YOU NEED TO GET SAFE PASSAGE ON BOTH SIDES OF THE ROAD FOR, UM, THE SPEED DEMONS THAT ARE TRAVELING BETWEEN COTTONWOOD AND SEDONA 89 A, UM, THAT YOU ENGAGE EITHER GSRC MEMBERS OR THE FOREST SERVICE BECAUSE THERE IS A POSSIBILITY FOR OTHER FUNDING BEYOND FEDERAL FUNDING, UM, SUCH AS STATE PARKS. BECAUSE IF WE TIE IN THE OHVS THAT COULD COME UP FROM CLIFFHANGER AND THEN GO AROUND THE FACILITY OVER TO 5 25, THAT WOULD BE, UM, THAT WOULD BE A PROJECT TO WHICH THEY'D BE WILLING TO POTENTIALLY PROVIDE GRANT MONIES AS WELL. SO, UM, I, I CAN'T SPEAK FOR WHAT WILL HAPPEN ON THE FOREST SERVICE FEDERAL FUNDING. UM, I'M LOOKING AT NINA, SHE'S LIKE, GO FOR IT. UM, BUT THE, UH, FOREST SERVICES HAS SAID IN GSRC MEETINGS THAT THEY WOULD ALSO APPLY FOR FEDERAL FUNDING, UM, IF THAT WAS PART OF THE CONSIDERATION IN THE DESIGN TO HELP WITH THE CONSTRUCTION. SO, UM, I JUST WANTED TO PUT THAT FORWARD, THAT STAFF KEEP THAT IN MIND, ESPECIALLY AS YOU'RE MOVING FORWARD INTO THE COST OF THAT CONSTRUCTION. THAT INCLUSION OF THE FOREST SERVICE OR THE GSRC, WHICH HAS FOREST SERVICE MEMBERS ON IT FOR THE ROUTE TEAM THAT KEEPING THEM ENGAGED MAY ALSO THEN, UM, GIVE THE CITY BENEFIT LATER WHEN WE GET TO THE CONSTRUCTION PHASE MORE OR LESS 16 MONTHS FROM NOW. THANK YOU. THANKS, MAYOR. ACTUALLY, IT'S A QUESTION. SORRY. YOU KNOW, WHEN I LOOK AT THAT SCHEDULE, I JUST KINDA WONDER LIKE, OKAY, THE PEOPLE WHO ARE WORKING ON THIS, LIKE THEY'RE WORKING ON MULTIPLE PROJECTS, LIKE WE, WE DON'T REALLY HAVE LIKE A DEDICATED FULL-TIME JUST WORKING ON THIS AND THIS ALONE FOR 16 OR 17 MONTHS. DO WE REALLY? YEAH, TYPICALLY IN THE A AND E, THEY HAVE A PROJECT MANAGER AND A PROJECT DELIVERY TEAM. MM-HMM . AND THEN THROUGH THE PROCESS, THAT PERSON IS BRINGING IN THEIR INTERNAL STAFF AT WHAT STAGES THEY ARE. SO INITIALLY KICKOFF IT'S GONNA BE, UM, MORE THE CIVIL ENGINEERING VERSUS THE ARCHITECT SIDE ONCE THEY COME TOGETHER ON WHAT THEIR PLAN AND SCOPE IS, ON WHAT THE FOOTPRINT IS, THE ORIENTATION AND SO ON. SO THEY HAVE A WHOLE SET [02:05:01] SCHEDULE OF A TEAM. MM-HMM . KIND OF GOES THROUGH A PROCESS. YEAH. I, IT'S NOT A CRITICISM OR ANYTHING, IT'S JUST SORT OF JUST TRYING TO APPRECIATE WHAT IT TAKES TO GET SOMETHING DONE WHEN THE DAY IS DONE. AND I JUST KINDA WONDER LIKE, IS THERE, IF, IF YOU COULD ALIGN THE STARS IN THE MOON, COULD YOU COLLAPSE THIS SOMEHOW FROM 17 MONTHS DOWN TO 12 OR DOWN TO EIGHT? AND I DON'T KNOW THAT IT NECESSARILY MATTERS FOR THIS PARTICULAR PROJECT, BUT THINKING ABOUT OTHER ONES WE'VE EITHER SEEN OR WE WILL SEE, I JUST KINDA WONDER LIKE, YOU KNOW, IN THE WORLD OF I WANT IT AND I WANT IT NOW, YOU KNOW, HOW MUCH OF THIS 17 MONTHS IS JUST FRICTION FROM PEOPLE HAVE MULTIPLE PROJECTS? YOU KNOW, I'M, I'M STILL TRYING TO FINISH THIS ONE, BUT I'VE BEEN ASSIGNED TO THAT AND YOU WANT ME TO GO LOOK AT THIS OTHER ONE THAT'S IN THE HOPPER. SO I JUST, I JUST WONDER LIKE REALISTICALLY, IF IF WE WERE REALLY IN A HURRY ON SOMETHING EVER, COULD WE, COULD WE COLLAPSE ONE OF THESE SCHEDULES? YES, YOU CAN, BUT IT'S USUALLY AT COST AT A HIGHER PRICE. SO IT'S, YOU KNOW, CONSULTING ENGINEERING, IF YOU WANT IT QUICKLY, UM, IT COSTS A HIGHER PRICE IF YOU WANT IT A HIGHER QUALITY, IT TAKES LONGER OR PAY A HIGHER PRICE. THESE ARE ALL THESE THREE TIMES, YOU KNOW, UH, IT'S A TRIANGLE. UM, SO THOSE ARE ALL IN PROCESS. SO YEAH, IT'S, IT, THE PLAN REVIEWS ALSO IS WHAT JONATHAN'S MENTIONING GONNA BE THROUGH ADOT. THEY'RE ADMINISTRATING THIS GRANT. SO EVERYTHING THAT WE'RE DOING IS GOING THROUGH A THIRD PARTY ADOT WHO'S ADMINISTRATING THE, THE GRANT PROCESS THROUGH, THROUGH FT A. SO THERE'S MULTIPLE PEOPLE, MULTIPLE OF REVIEW PROCESSES. UM, AND ROBERT'S ALREADY REFERENCED THE SPEED OF GOVERNMENT. THANK YOU FOR THAT. THAT'S PART OF THAT TOO IS WE NEED TO GET FEEDBACK AND APPROVAL IN ORDER TO MOVE FORWARD TO FROM, UH, 30% TO 60% 90. BUT SOMETHING YOU WERE TALKING ABOUT ON, UH, A AND E FIRMS OF WHY THEY BID AND SO ON. A LOT OF THEM, MY UNDERSTANDING BEING A CONSULTANT IS THEIR MARKETING DEPARTMENT WORKS WITH THEIR OPERATIONS, IS THAT THEY DON'T GO AFTER PROJECTS IF THEY DON'T HAVE THE STAFF TO DO THAT WORK. AND IF YOU ALL KNOW NOW THAT ENGINEERS, ARCHITECTS, SURVEYORS ARE IN A HIGH DEMAND, THEY'RE NOT, THEY'RE, THEY'RE NOT GRADUATING OUT OF COLLEGES AS WE ARE, AS YOU KNOW, IT'S, IT'S STRUGGLE FOR MY DEPARTMENT TO HIRE NEW ENGINEERS AND SO ON. SO THERE, THE CONSULTING WORLD HAS THE SAME CHALLENGE. IT'S GETTING PEOPLE TO FILL THESE POSITIONS TO KEEP THE MACHINE, UM, MOVING SMOOTHLY. SO IF WE DID WANT TO DO THAT, WE WOULD HAVE TO COME BACK TO THEM AND RENEGOTIATE TO TRY TO ACCELERATE THAT SCHEDULE. SO THANK YOU FOR HUMORING THAT QUESTION. NOW, ANOTHER HYPOTHETICAL, SO LA'S ON FIRE, AND IT'S NOT GONNA JUST BE AS SIMPLE AS LET'S GO BUILD, YOU KNOW, BACK 10 OR 15,000 HOUSES PLUS COMMERCIAL AND WHATNOT. WHAT, WHAT DOES YOUR, UH, CRYSTAL BALL TELL YOU ABOUT THE IMPACT GIVEN OUR PROXIMITY, GIVEN THAT WE RELY ON THE VALLEY TO BEGIN WITH FOR SO MUCH DESIGN, CONSTRUCTION, ET CETERA. WHAT'S YOUR CRYSTAL BALL TELL YOU ABOUT THE IMPACT THAT WILL HAVE ON THINGS THAT WE'RE TRYING TO ACCOMPLISH HERE OVER THE NEXT FIVE YEARS. I THINK IT'S GONNA HAVE AN IMPACT. HOW MUCH, UH, FOR HOW LONG IS UNKNOWN AND BECAUSE YOU'RE RIGHT, IT'S A REGIONAL SOUTHWEST ISSUE AS WE'RE FACING IN CONSTRUCTION, THE TAIWANESE, UH, MICROPROCESSOR PLANT THAT'S IN THERE THAT SUCKED ALL THE STEEL, ALL THE CONCRETE, ALL THAT HVAC LABOR IN THERE. THAT'S WHY I BELIEVE THE PARKING GARAGE OF ALL THESE THINGS, IT'S HAVING EFFECT STATEWIDE, REGIONAL WISE. SOUTHWEST, YOU'RE ABSOLUTELY RIGHT, BRIAN. IT'S, THERE'S GONNA BE AN IMPACT ON THAT. HOW MUCH I KNOW HOW MUCH IS RESIDENTIAL VERSUS COMMERCIAL, BUT THERE'S SCHOOLS, THERE'S ALL THAT INFRASTRUCTURE. THERE'S GONNA BE AN IMPACT. YEAH. OKAY. THANK YOU. AND I MEAN IT'S, AND, AND THE ARCHITECTURAL AND ENGINEERING SIDE AS WELL, IT'S GONNA TAKE A HUGE AMOUNT IN ORDER TO GET THAT BACK AND GROUND. FORTUNATELY, I THINK WE HAVE THE RESOURCES TO DO THAT. UM, HOW IT'S GONNA SHAKE OUT. I I, I'M, I'M NOT, I WORK IN SEDONA LIVING FLAG. I'M NOT THE FORTUNE TELLER, THOUGH. I CAN'T . THANK YOU, KURT. THANK YOU MAYOR. ANDY, YOU WANT, ANDY, YOU WANT TO ADD SOMETHING? I THINK IN THE END, I DON'T HAVE MUCH TO ADD. I WAS JUST GONNA EMPHASIZE THAT A LOT OF TIMES THESE SCHEDULES ARE MORE, MORE CONTROLLED BY THE REVIEWS OF WHATEVER PERMITTING THAT YOU'RE GOING THROUGH VERSUS, YOU KNOW, THERE IS SOME, UM, CONSIDERATION FOR THE STAFF, TIME FOR YOUR CONSULTANT THAT THAT DOES PLAY INTO THE SCHEDULE. BUT THOSE, THOSE DELIVERABLES HAPPENING WHEN THEY NEED TO, TO GET THROUGH THE PERMITTING PROCESS IS USUALLY A BIGGER, UM, CONSIDERATION OF HOW THAT SCHEDULE IS PUT [02:10:01] TOGETHER. SO, ANDY, YOU JUST MENTIONED PERMITTING. SO IF THE PROPERTY IS NO LONGER IN THE COUNTY AND IT'S WITHIN THE CITY LIMITS, THAT WOULD EXPEDITE THAT. WELL, LET'S SEE. ONCE WE'RE WITHIN CITY LIMITS, UM, WOULD BE OUR STAFF THAT ARE OVERSEEING THE PERMITTING AS FAR AS BUILDING, UM, UH, BUILDING PERMITS AND GRADING PERMITS AND THOSE SORTS OF THINGS. AND JUST FROM MY EXPERIENCE, I WOULD SAY THAT OUR STAFF WOULD BE QUICKER AT GETTING THROUGH THAT PROCESS. I WOULD'VE THOUGHT SO TOO, BUT, OKAY. SO JONATHAN JUST BROUGHT UP A GOOD POINT TOO, THAT WE WOULD HAVE TO CIRCLE BACK WITH ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY ABOUT OUR WASTEWATER TREATMENT PLANT SURE. AND UPDATE THE PERMIT ON THAT. THAT'S AN UPDATE. IT DOESN'T REQUIRE A REVIEW, BUT, UM, AT THE COUNCIL'S DIRECTION, I CAN GET MY STAFF TO FOCUS ON THAT, TO WORK WITH COMMUNITY DEVELOPMENT TO TRY TO MAKE SURE THAT WE ARE EXPEDITING OUR REVIEW, THE THINGS THAT WE CAN CONTROL TO GET IT BACK TO THE CONSULTANT TO KEEP THE PROJECT MOVING FORWARD AS QUICKLY AS POSSIBLE. OKAY. THANK YOU. CONTINUE ON. WAS THAT IT? I THINK THAT'S IT. IT WERE JUST COMMENTS AND QUESTIONS, MAYOR. OKAY. SO, UH, THAT WAS A QUESTION. WE CAN GO INTO COMMENTS. I THINK YOU HAD, PETE, DID YOU SAY YOU HAD A COMMENT? NO, DEREK. OKAY. KATHY? NO, WE'RE GOOD. MOVING RIGHT ALONG TONIGHT. DO I? OKAY. I . OH, I WANT, WHO COULD IT BE? OKAY, LET'S OPEN THE PUBLIC HEARING TO COMMENT. PUBLIC COMMENT. OKAY. OH, WAIT A MINUTE. YOU, YOU, YOU LIVE IN CLARKDALE. FORGET IT. I CAN'T. GO AHEAD. COMMERCIAL. YOU KNOW, THE, YOU, YOU, I'M SURE IT IS. YOU ARE ALWAYS VERY RELEVANT. GO AHEAD. ALRIGHT. UH, NINA BARLOW, RESIDENT OF CLARKDALE, ARIZONA, AND AS A FREQUENT PARTICIPANT IN THE CLARKDALE TO SEDONA 500 TRACK, UM, , PLEASE CONSIDER IN THIS DESIGN. UM, YOU KNOW, I HAVE, UH, REACHED OUT TO ADOT AND, UM, EXPRESSED OUR INTEREST, YOU KNOW, OUR O THE OHV INTEREST AND RECREATIONAL ACCESS, AND SOME OF THESE OTHER, YOU KNOW, MULTI-USER CONFLICT ISSUES. UM, 65 MILES AN HOUR. UH, IT'S NOT SAFE FOR, UM, ATVS TO CROSS THE HIGHWAY RIGHT THERE AT THE CLIFFHANGER TRAIL. AND, UH, LAST TIME I CHECKED BUSES AND THINGS ARE MUCH SLOWER MOVING AND HARDER TO, HARDER TO MERGE. I ENVISIONED THEM COMING OUT OF THE, UM, THE FACILITY AND HAVING TO MAKE A LEFT TURN ONTO HIGHWAY 89 A, WHICH I THINK WE CAN ALL VOTE. THAT'S PROBABLY ONE OF THE MOST DANGEROUS THINGS THAT ANYONE, ANY OF US HAVE TO DO AT ANY TIME OF YEAR. UM, SO ONCE AGAIN, AS MELISSA SAID, UM, THE, UH, THERE, THERE ARE, THERE'S A LOT OF INTEREST AT MANY LEVELS. UM, UH, THE, THE, THE SAFETY OF THE BUSES AND VEHICLES TRYING TO COME OUT OF THERE AND GET BACK TO TOWN AND DO THEIR WORK, UM, FOR OUR RECREATIONAL USERS TO BE ABLE TO GET ACROSS THE HIGHWAY SAFETY SAFELY. UM, AND, UH, AS I MENTIONED TO 8.2, THAT STRETCH BETWEEN, UM, THAT NORTH END OF THE SEWAGE TREATMENT PLANT AND, UM, LOWER RED ROCK LOOP ROAD IS ONE OF THE BIGGEST SINGLE VEHICLE ACCIDENT AREAS BETWEEN WILDLIFE, UM, BECAUSE, YOU KNOW, IT'S 65 MILES AN HOUR. SO WE HAVE, UH, YOU KNOW, WILDLIFE IMPACTS, WE HAVE ICY BRIDGES, ICY TURNS, THINGS LIKE THAT. SO, UH, YOU KNOW, AS SOMEONE WHO IS NOT FOND OF THE, ALL THE ROUNDABOUTS ON HIGHWAY TWO 60, IT'S STILL SOMETHING THAT WE WOULD PUSH FOR IN THAT LOCATION. THAT'S A ROUNDABOUT. SO THAT'S ALL I GOT. THANK YOU, NATHAN. THANK YOU. OKAY. OKAY. THAT'S IT FOR TONIGHT. I PROMISE. , I NEVER SAY NEVER, NEVER. RIGHT. OKAY. I HAVE A, A MOTION. DO WE HAVE ANYBODY MAKING A MOTION? SEE, I DIDN'T SEE IT EITHER. WHY YOU DO IT? I'LL MAKE THE MOTION. YEAH. COME ON. YOU DON'T DO IT THAT OFTEN AND I MISSED IT. SO, I MOVED TO APPROVE THE AWARD OF THE PROFESSIONAL SERVICES CONTRACT FOR THE TRANSIT MAINTENANCE AND OPERATIONS CENTER PROJECT WITH KIMLEY HORNE ASSOCIATES IN THE AMOUNT OF $1,872,014 AND NO CENTS, SUBJECT TO APPROVAL BY THE WRITTEN CONTRACT BY THE CITY ATTORNEY'S OFFICE. DO WE HAVE A SECOND? SECOND. OKAY. ANY DISCUSSION? HEARING NONE. ALL IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? WE ARE UNANIMOUS. MME. CLARK. OKAY, MAYOR. YES. I WOULD LIKE TO JUST, UH, ACKNOWLEDGE WHAT A GREAT JOB THESE GUYS DID IN THEIR PRESENTATIONS AND FURTHER ACKNOWLEDGE WHAT A GREAT THING IT IS THAT IAN IS HERE TONIGHT ON HIS BIRTHDAY. WHOA. HE DID IN HIS PRESENTATION. SO, THANKS. AND OUR GIFT TO YOU IS THAT WE WILL NOT SING . [02:15:02] GOOD THOUGHT. ALRIGHT. AND WE'LL LET YOU GET OUTTA HERE NOW, . OKAY. THANK YOU. THERE'S A BIRTHDAY COOKIE FOR YOU. THAT'S RIGHT. YEAH, YEAH, YEAH. AND JUST FOR YOU, THERE'S BIRTHDAY COOKIES IN THERE, . YOU WANT THANKS GUYS. PLEASE. YEAH. . NO, WE'RE COMING BACK TOMORROW. YOU CAN EITHER USE THIS TO ADVANCE IT OR YOU CAN USE THIS TO ADVANCE IT. THIS ONE OR THIS ONE? YEAH, EITHER WAY. THIS ONE. OKAY. SO IS THIS GONNA BE ON THE UHHUH? OKAY. I JUST MADE IT THIS LIKE THAT. I FORGOT. I CAN USE A MOUSE HERE. SURE. WHATEVER YOU, UH, JUST START CLICKING IF YOU WANT SOMETHING. USE THE LIVE LASER BECAUSE I CAN'T SEE. GOT IT. THANK YOU. APPRECIATE THAT. OKAY. BEFORE YOU'RE READY, JOHN. UH, DEREK, YOU WANNA STEP OFF? YEAH. UM, I WILL BE RECUSING MYSELF FROM THIS MATTER. UH, ARIZONA WATER COMPANY IS A CLIENT OF MY FIRM. OKAY. THANK YOU FOR LETTING US KNOW. DON'T LEAVE BILL THOUGH. WE HAVE A COUPLE MORE ITEMS AFTERWARDS. , I BELIEVE HE GETS A BREAK THAN WE I, BECAUSE HE'S STILL WORKING. . ALRIGHT, JOHN, [8.e. AB 3157 Discussion/direction regarding review of the Arizona Water Company Proposed Rate Increases and submission of public comment to the Arizona Corporation Commission.] GOOD EVENING. UH, GOOD EVENING, MAYOR AND COUNCIL, AND THANK YOU FOR HAVING US. UM, MY NAME'S JOHN SNICKERS. I THINK YOU KNOW THAT. UM, I'M DIVISION MANAGER FOR ARIZONA WATER COMPANY HERE IN SEDONA. AND I HAVE WITH ME THIS EVENING, UH, NICK LOU, WHO IS OUR VICE PRESIDENT OF RATES AND REVENUES, UH, FROM OUR CORPORATE OFFICE. AND I THINK IF YOU RECALL ON OUR TOUR OF THE WATER SYSTEM, THE SUBJECT CAME UP ABOUT THE, UH, RATE CA THE RATE CASE APPLICATION THAT ARIZONA WATER COMPANY HAS SUBMITTED WITH THE A CC, AND THAT IT WOULD BE GOOD TO GET TOGETHER AND, UH, GIVE YOU AN OVERVIEW OF WHAT THE RATE CASE LOOKS LIKE, AND ALSO, UM, ANSWER ANY QUESTIONS OR CONCERNS ABOUT PO REGARDING POTENTIAL, POTENTIAL COMMENTS. SO THAT BEING SAID, I'LL GO AHEAD AND, UM, TURN THE TIME OVER TO NICK. AND, UH, WE HAVE VERY SHORT, VERY SHORT FOUR OR FIVE SLIDES HERE, AND WE WILL GO THROUGH THOSE QUICKLY. AND SO, SO THAT YOU CAN ASK QUESTIONS. OKAY. CONTINUE ON. THANK YOU. GOOD EVENING, MAYOR, VICE MAYOR, COUNCIL MEMBERS, UH, THANK YOU FOR THE OPPORTUNITY TO, FOR US TO PROVIDE THE UPDATE ON OUR, SORRY, ON OUR PENDING, UH, RATE APPLICATION IN THE NORTHERN GROUP. SO BEFORE I DIVE INTO THE DETAILS OF THE RAY CASE, I DO WANNA PROVIDE SOME BACKGROUND ON THE RAY CASE IN THE ARIZONA WATER COMPANY. SO, ARIZONA WATER COMPANY HAS BEEN SERVING THE SEDONA COMMUNITY SINCE 1961. WE HAVE BEEN HERE FOR MORE THAN 60 YEARS. AND ANOTHER THING I ALWAYS LIKE TO MENTION IS, IF NOT THE ONLY ONE, WHAT PROBABLY ONE OF THE VERY FEW UTILITIES CURRENTLY IN ARIZONA WHO STILL MAINTAIN CUSTOMER SERVICE CENTERS IN THE COMMUNITIES WE SERVE. WE SERVE, WHICH, YOU KNOW, THE TEAM THAT, UH, THAT JOHN MANAGES HERE, YOU KNOW, WE HAVE, YOU KNOW, CUSTOMER SERVICE REPRESENTATIVES WHO TALK FREQUENTLY TO OUR CUSTOMERS, AND THEY'RE FROM THE COMMUNITY AND THEY'RE HERE TO SERVE THE COMMUNITY. SO THE RAY CASE I'M GONNA TALK ABOUT WE FOUND WITH THE ARIZONA CORPORATION COMMISSION, THE A CC IS FOR OUR NORTHERN GROUP. SO THE NORTHERN GROUP, UH, THE NORTHERN GROUP OF ARIZONA WATER COMPANY CONSISTS OF EIGHT PUBLIC WATER SYSTEM IN NORTHERN ARIZONA, UH, INCLUDING OUR PUBLIC WATER SYSTEM IN, IN SEDONA. SO IN OUR NORTHERN GROUP, WE CURRENTLY HAVE APPROXIMATELY ABOUT 22,000 CUSTOMER CONNECTIONS SERVING OVER 55,000 POPULATION. AND THE CURRENT RATES THAT THE CUSTOMERS ARE PAYING TODAY IN THE NORTHERN GROUP, THOSE WERE MADE EFFECTIVE, UH, OR APPROVED BY THE COMMISSION BACK IN 2019, SEPTEMBER OF 2019. SO IT HAS BEEN ALMOST SIX YEARS SINCE OUR LAST THREE CASE, AND THOSE RATES WERE ON A CONSOLIDATED BASIS FOR THE ENTIRE NORTHERN GROUP. SO ONE OF THE THINGS I DO WANNA MENTION, YOU KNOW, KIND OF AS A A LITTLE BIT BACKGROUND IN TERMS OF HOW THE RATE MAKING WORKS IN ARIZONA IS THE A CC HAS A VERY UNIQUE REGULATORY FRAMEWORK. SO EVERYTHING THEY APPROVE, LIKE THE RATES THAT CUSTOMER ARE [02:20:01] PAYING OR THE RATES THAT, UH, THE, UH, THE CORPORATION COMMISSION IS REVIEWING TODAY, UH, ALL KINDA RITUAL RETROSPECTIVE. SO THEY ARE APPROVING THOSE RATES TO RECOVER THE INVESTMENT. ARIZONA WATER COMPANY HAS ALREADY MADE. IT'S FOR THE FACILITY OR INFRASTRUCTURES THAT'S ALREADY USED, THAT'S ALREADY IN SERVICE. SO THOSE ARE NOT USED TO FUND, YOU KNOW, NEW CONSTRUCTIONS IN THE FUTURE BECAUSE THAT'S NOT HOW THE FRAMEWORK WORKS. AND THE SAME MECHANISM ALSO APPLIES TO THE SURCHARGES THAT'S ON CUSTOMER'S BILL AS WELL. SO, SO WITH THOSE BACKGROUND, I DO WANT TO PROVIDE SOME, YOU KNOW, UH, SOME INFORMATION ON HOW THE RATE CASE WORKS IN, UH, IN ARIZONA. SO, AS YOU KNOW, THE RATE CASE WAS FILED WITH THE A CC AND THE A CC CURRENTLY IS REVIEWING OUR RATE CASE, WHICH MEANS THEY HAVE A TEAM OF LIKE PROFESSIONAL STAFFS FROM ENGINEERING, ACCOUNTING AND LEGAL BACKGROUND TO RE TO REVIEW EVERY ASPECT OF THE RATE APPLICATION WE FILED. AND ALSO THERE IS ANOTHER GOVERNMENT AGENCY CALLED, UH, RESIDENTIAL UTILITY CONSUMER OFFICE. SO RUCO. SO THEY ARE, UH, THAT ESTABLISHED BY THE ARIZONA LEGISLATURE IN 1983. AND THEIR PURPOSE IS TO REPRESENT THE INTEREST OF THE RESIDENTIAL UTILITY, UH, CUSTOMERS IN RATE PROCEEDINGS LIKE THIS RATE CASE IN FRONT OF THE A CC. AND THEY ARE A PARTING IN OUR RATE CASE AS WELL. SO THEY ARE DILIGENTLY REVIEWING OUR CASES ON BEHALF OF THE RESIDENTIAL CUSTOMERS AS WELL. SO WHAT THAT MEANS, LIKE, YOU KNOW, THEIR INVOLVEMENT IS BOTH THE COMMISSION, THE A CC STAFF AND THE RUCO STAFF. UM, AFTER THEIR REVIEW, THEY'LL PRE, UH, THEY'LL PRESENT THEIR PERSPECTIVE OF, UH, OF THE RATE CASE AND THEY WILL ISSUE THEIR RECOMMENDATION TO THE COMMISSION FOR CONSIDERATION. AND I THINK, AS WE STATED IN OUR PUBLIC NOTICE TO OUR CUSTOMERS, UH, THE A CC ALSO SCHEDULED TWO PUBLIC COMMENT SESSIONS WHERE THE PUBLIC CAN GO TO THE COMMISSION AND MAKE THEIR COMMENTS OR MAKE THEIR CONCERN HEARD BY THE COMMISSION. AND THOSE TWO PUBLIC, UH, COMMON SESSIONS WERE SCHEDULED FOR JANUARY 29TH, WHICH IS COMING UP AND MARCH, UH, 17TH OF THIS YEAR. CAN I ASK A QUESTION? YES. VICE, WHO, WHO ARE THE RUCO? WHERE DO THEY SIT? YOU KNOW, ARE THEY GOVERNMENT EMPLOYEES? YES, THEY ARE. SO, UM, THE RUCO DIRECTOR IS APPOINTED BY THE, UM, BY THE GOVERNOR AND HAS TO BE CONFIRMED BY THE, UH, BY THE STATE SENATE. HAS THAT HAPPENED? UH, YES. SO THEY HAVE, SO THEY HAVE, THE DIRECTOR IS APPOINTED BY THE, UM, BY THE, UM, BY THE GOVERNOR, BUT THEY ALSO HAVE THEIR STAFF. SO THEY HAVE THEIR DEPUTY DIRECTOR, THEY HAVE THEIR LEGAL STAFF, THEY HAVE THEIR ACCOUNTING STAFF AS WELL. SO THEY ARE THE ONES WHO ARE REVIEWING THE CASE AND DIVING TO THE DETAILS. HOW MANY MEMBERS ARE THERE OF THIS ORGANIZATION? UH, LET ME THINK. SO THEY HAVE ONE DIRECTOR, ONE DEPUTY DIRECTOR, ONE CHIEF COUNSEL, AND ANOTHER SENIOR ATTORNEY. UH, LET ME THINK, THREE, I THINK THEY HAVE THREE ACCOUNTING STAFF AND ONE ADMINISTRATIVE STAFF. SO IT'S PROBABLY ABOUT EIGHT. IT'S ABOUT EIGHT, UH, EMPLOYEES, EIGHT STAFF MEMBERS. CAN I TAG ON MM-HMM . SO IS IT JUST THE DIRECTOR AND DEPUTY THAT ARE POLITICAL APPOINTEES? UH, I'M NOT QUITE SURE IF THE DEPUTY DIRECTOR NEEDS CONFIRMATION, BUT, BUT, BUT, BUT THE, THE DIRECTOR IS DEFINITELY APPOINTED BY THE GOVERNOR. THANK YOU. YEAH. SO DO THEY HAVE, ARE THEY MORE ACCOUNTANTS VERSUS ATTORNEYS, ENGINEERS? I MEAN, IT'S ATTORNEYS AND ACCOUNTANTS IS BASICALLY WHO THEY'RE THAT'S RIGHT. YEAH. SO, YOU KNOW, SO THEY, THEY SOMETIMES RELY ON THE, THE COMMISSION STAFF ENGINEERING TEAM TO FOCUS ON THE ENGINEERING ASPECT OF THE REVIEW OF THE RATE CASE. OKAY. THANK YOU. YEAH. OKAY. SO MOVING ON. UH, I DO WANNA SHOW YOU GUYS KIND OF A, A, A, A TIMELINE OF THE RATE CASE BECAUSE IT IS A VERY FORMAL AND LENGTH PROCESS, AS YOU CAN TELL. SO WE NORMALLY STARTED WITH WHAT WE CALL THE HISTORIC TEST YEAR. THAT'S IN 2023. THAT'S WHEN, AS A COMPANY, WE HAVE TO COLLECT ALL THE DATA FROM CUSTOMER ACCOUNTS, FROM CUSTOMER USAGE, WHICH HAS TO BE INCLUDED AND PRESENTED TO THE COMMISSION AS PART OF THE RATE CASE. AND THEN WE'LL SPEND, LIKE, YOU KNOW, THE FIRST HALF OF LIKE 20, 24, ABOUT SIX MONTHS TO REALLY PREPARE OUR FILING IN ORDER TO FILE IT WITH THE COMMISSION. SO WE FILED ARRAY CASE AS WE'VE, NO, UH, AS, AS WE HAVE PUT ON THE NOTICE TO CUSTOMERS, WE FILED THE ARRAY CASE BACK IN JUNE OF 21ST OF 2024, AND OUR ARRAY CASE CONSISTS OF 7,000 PAGES OF TESTIMONY AND EXHIBITS. SO IT'S REALLY, A LOT OF DETAILS AND EFFORT HAS BEEN PUT INTO THE RATE CASE. SO AFTER THAT, [02:25:01] WE GOT INTO THE PERIOD WHAT, WHAT WE CALL DISCOVERY OR, YOU KNOW, DATA REQUEST PERIOD THAT LAST ABOUT SEVEN TO NINE MONTH. THAT'S WHEN THE A CC STAFF AND RU CODE, THEY WILL DO THEIR REVIEW AND THEY WILL ISSUE DATA REQUESTS AND QUESTIONS TO US LEFT AND RIGHT, EVERY ASPECT OF THE RATE CASES FROM SITE VISIT TO, TO, YOU KNOW, TO THE INFRASTRUCTURE OF OUR SYSTEM. AND THEY NEED TO MAKE SURE THOSE ARE PRUDENT INVESTMENT TO THOUSANDS OF INVOICES WE HAVE TO SUBMIT TO THE, TO THE COMMISSION FOR REVIEW TO VERIFY THOSE EXPENSES ARE ACTUALLY BEING SPENT. SO IN FACT, YOU KNOW, RIGHT BEFORE I STEP INTO THE, UH, INTO THE MEETING, I WAS IN MY CAR ANSWERING A QUESTION FROM THE COMMISSION STAFF ABOUT A VERY DETAILED CALCULATION. SO REALLY GET GETTING TO THE WEEDS OF LIKE, YOU KNOW, THE, THE MATHEMATICS AND THE CALCULATIONS. SO AFTER WE GO THROUGH THAT PROCESS, AFTER RUCO AND, YOU KNOW, COMMISSION STAFF ISSUED THEIR RECOMMENDATION, UH, WE'LL GO INTO THE HEARING PROCESS, WHICH, UH, THE, THE PUBLIC HEARING IS SCHEDULED TO START ON MARCH 17TH OF THIS YEAR. SO, UH, UH, THERE WILL BE A ADMINISTRATIVE OF LAW JUDGE THAT'S BEING SIGNED BY THE COMMISSION TO PRESIDE OVER THIS HEARING. THE HEARING NORMALLY LASTS ABOUT A WEEK, AND WE'LL GO IN. SO BASICALLY US AS, AS A COMPANY, ARIZONA WATER COMPANY COMMISSION STAFF, AND RUCO, EACH OF US WILL PRESENT OUR CASE TO THE JUDGE AND WE'LL GET, YOU KNOW, PERSONALLY I'M A WITNESS IN THE CASE, SO WE'LL TESTIFY ON BEHALF OF THE COMPANY AND I'LL GET QUESTIONS FROM THE RUCO OR THE COMMISSION STAFF ATTORNEYS. SO THAT'S HOW THE HEARING PROCESS GOES. ONCE THE HEARING IS CONCLUDED, UH, IT WOULD TAKE THE A OJ THAT MR. LAW JUDGE PROBABLY, PROBABLY TWO OR THREE MONTHS TO ISSUE, YOU KNOW, HIS OR HER RECOMMENDATION TO THE COMMISSION. AND ULTIMATELY THE RATES WILL HAVE TO BE VOTED AND APPROVED BY THE FIVE ELECTED COMMISSIONERS OF THE A CC. AND WE EXPECTED THE RATES TO BE EFFECTIVE AROUND THE THIRD QUARTER OF THIS YEAR. AND I THINK A LOT OF QUESTIONS HAS BEEN ASKED, YOU KNOW, IN THE COMMUNITY, AND BY A LOT OF, YOU KNOW, STAKEHOLDERS, IS, WHY DO WE NEED THE RATE CASE? YOU KNOW, WHY, WHAT CAUSED THE RATE INCREASE? SO THERE ARE A LOT OF FACTORS GOES INTO THIS, BUT I THINK MAJORLY, UH, IS REALLY BECAUSE OF THE CURRENT RATES, LIKE I MENTIONED BEFORE, DUE TO THE REGULATORY FRAMEWORK OF THE A CC, THAT THEY LOOK AT THE HISTORIC DATA. SO THE CURRENT RATES THE CUSTOMER ARE PAYING TODAY IS BASED ON THE COST INFORMATION OF 2017. SO IT HAS BEEN QUITE OUTDATED, HAS BEEN MORE THAN SIX YEARS COMPARED TO NOW. AND THOSE RATES ARE NOT ADEQUATE ENOUGH FOR ARIZONA WATER TO REALLY TO PROVIDE THE SERVICE, TO PROVIDE THE SAFE AND RELIABLE SERVICES TO RECOVER OUR COSTS, TO SERVE OUR CUSTOMERS. SO THAT'S WHY WE NEED THE RATE INCREASE. AND THERE'S SEVERAL KIND OF LIKE MAJOR CAUSES OR MAJOR KIND OF FACTORS THAT GOES INTO THE RATE INCREASE. SO WE HAVE MADE SUBSTANTIAL CAPITAL INVESTMENT SINCE 2017, SINCE THE LAST RATE CASE IN OUR, UH, IN OUR SYSTEMS, YOU KNOW, RANGING FROM, UH, REPLACING, UH, INFRASTRUCTURE TO BUILDING NEW TREATMENT PLANS. SO THOSE INVESTMENTS IS PART OF THE RATE INCREASE. AND ALSO, LIKE THE CITY, PROBABLY LIKE EVERYBODY, YOU KNOW, LIKE WE, WE TALK ABOUT INFLATION FOR THE PAST FEW YEARS, YOU KNOW, UM, FROM OUR LAST THREE CASE 2017 TO OUR CURRENT, YOU KNOW, HISTORIC TEST YEAR OF 2023, OVER THOSE YEARS, THERE HAS BEEN MORE THAN 24% OF ACCUMULATIVE, UH, INFLATION. SO THAT, THAT'S A TOPIC THAT EVERYBODY TALKS ABOUT. SO THE CITY, US, EV, YOU KNOW, ACROSS THE COUNTRY, ACROSS THE WORLD, EVERYBODY HAS EXPERIENCED THE, THE INFLATION. AND WE HAVE TO, AND WE HAVE IN, YOU KNOW, THOSE INFLATION HAS COST OUR INCREASES, UH, SINCE 2017 IN PROPERTY TAXES, INSURANCE PREMIUMS, ELECTRIC BILLS, LABOR CARS, ALL KINDS OF THINGS. SO, WHICH IS KIND OF INTERESTING FOR THE PAST TWO YEARS WHEN NOT, I MEAN, I, I, I, WE UNDERSTAND WE GOT A LOT OF FEEDBACK FROM THE COMMUNITY, BUT IF YOU LOOK ACROSS THE STATE, BECAUSE OF THOSE INFL, UH, INFLATIONARY PRESSURES, YOU KNOW, WE'RE NOT THE ONLY UTILITY THAT'S REQUESTING A RATE INCREASE WITH THE COMMISSION. IN FACT, THERE ARE ALSO MUNICIPAL UTILITIES THAT IN THE STATE HAS BEEN INCREASING QUITE SIGNIFICANT RATE INCREASES AS WELL BECAUSE OF THOSE FACTORS THAT WE SHARE SIMILARLY. SO ONE OF THE QUESTIONS SINCE WE FILED THE, THE RATE CASE, AND AFTER WE SEND THE CUSTOMER NOTICE TO CUSTOMERS, A VERY FREQUENTLY ASKED QUESTION IS, WHAT DOES THIS MEAN? WHAT IS MY BILLING PACK? BECAUSE THAT'S WHAT MATTERS TO THE CUSTOMER THE MOST. SO FOR AVERAGE CUSTOMER, THEY WILL SEE ABOUT A $15 60 CENTS, 62 CENTS OF A MONTHLY BILL INCREASE, WHICH IS EQUIVALENT TO ABOUT 36%. AND SOME PEOPLE MIGHT WONDER, THIS IS A QUESTION OUR CUSTOMER SERVICE REPRESENTATIVE [02:30:01] GET A LOT AS WELL, IS WHY ON THE NOTICE YOU STAY 48%, WHY ARE YOU TELLING ME 36%? SO THE 48%, YOU KNOW, ON THE PUBLIC NOTICE, BECAUSE THAT WAS A TEMPLATE THE COMMISSION ALWAYS USED FOR ALL UTILITIES. SO THEY DON'T TAKE INTO THE ACCOUNT OF THE SURCHARGES THE CUSTOMER ARE PAYING AS OF TODAY. AND RIGHT NOW, A AVERAGE RESIDENTIAL CUSTOMER PAYS ABOUT $3 75 CENTS A MONTH FOR THOSE SURCHARGES. AND ONCE THIS RATE CASE, OR THIS RATE APPLICATION IS APPROVED BY THE COMMISSION, AND THE NEW RATES IS EFFECTIVE, THOSE $3 75 CENTS WILL BE RESET TO ZERO. SO ONCE YOU FACTOR THAT INTO THE, THE, THE BILL IMPACT, SO CUSTOMER WILL, UH, AVERAGE RESIDENTIAL CUSTOMER WILL SEE ABOUT A 36% RATE INCREASE BASED ON OUR PROPOSAL. BRIAN CAN SURCHARGES FIND THEIR WAY BACK INTO THE BILL. THEN ONCE THEY'RE RESET TO ZERO, LIKE ASSUME THE, A CCC GIVES YOU WHAT YOU WANT, NOW WE'VE GOT THIS ON AVERAGE A YEAR FROM NOW, ARE YOU BACK WITH A NEW SURCHARGE? OR HOW DOES THAT WORK? SO THOSE SURCHARGES WILL REQUIRE US TO MAKE ADDITIONAL INVESTMENT BECAUSE SOME OF THOSE SURCHARGES WERE VERY LIMITED TO, UH, TO VERY SPECIFIC PURPOSES. LIKE FOR RIGHT NOW, THE $3 75 CENTS ARE RELATED TO ONLY, UH, INFRASTRUCTURE REPLACEMENT, AGING INFRASTRUCTURE, UH, REPLACEMENT AND ARSENIC TREATMENT PLANT. SO THEY HAVE VERY SPECIFIC PURPOSES, AND THERE IS A POTENTIAL WE MIGHT INTRODUCE, UH, SURCHARGES IN THE FUTURE, BUT THOSE WILL HAVE TO BE APPROVED BY THE COMMISSION, WHICH IS ALSO RETRO, RETROSPECTIVELY LOOKING. WE HAVE TO MAKE THE INVESTMENT FIRST IN ORDER TO, UH, TO, TO, TO, TO REQUEST A SURCHARGE. THEN HELP ME UNDERSTAND, WHAT, IF YOU COME BACK A YEAR FROM NOW LOOKING FOR A SURCHARGE, I MEAN, REALLY, HOW'S THAT ANY DIFFERENT THAN THE RETROSPECTIVE LOOK BACK YOU'RE DOING RIGHT NOW TO RESET YOUR RATE NOW? LIKE IT JUST SURCHARGE JUST SOUNDS LIKE ANOTHER FORM OF I'M RAISING YOUR BILL AND IT, UNLESS SOMETHING'S DIFFERENT, DON'T YOU HAVE TO GO THROUGH THE SAME RIGAMAROLE THAT YOU'RE DESCRIBING RIGHT NOW FOR THIS RATE CHANGE REQUEST, NOT THIS LINDSAY PROCESS, BUT STILL THE SAME KIND OF LIKE SCRUTINY IN TERMS OF LIKE, YOU KNOW, INVOICES, UH, AND PROOF. WE HAVE TO SHOW THOSE, UH, THOSE INFRASTRUCTURE ACTUALLY IN SERVICE ACTUALLY BEING INVESTED. AND THOSE PRUDENT, IT'S STILL A VERY RIGOROUS, LIKE, YOU KNOW, SO I CAN GIVE YOU EXAMPLE. SO WE RECENTLY GOT APPROVED FOR, FOR ONE OF OUR SURCHARGES IN THE NORTHERN GROUP. IT TOOK US, YOU KNOW, FROM PREPARATION TO THE COMMISSION APPROVAL, THAT TAKES ABOUT NINE MONTHS JUST FOR THE PAPERWORK FOR THE APPLICATION, NOT JUST THE, I MEAN, WE HAVE BEEN SPENDING YEARS TO, TO ACTUALLY MAKE THOSE INVESTMENTS BEFORE WE EVEN WE CAN PUT IN THE APPLICATION. SO, SO MAKING IT SEDONA SPECIFIC, JOHN, YOU OBVIOUSLY KNOW THERE'S A GREAT DEAL OF CONCERN ABOUT WATER AND UPTOWN PROBABLY MORE THAN ANYWHERE ELSE IN TOWN DUE TO FIRE, RIGHT? SO YOU GUYS COMMIT TO AND START PUTTING SOME, UH, INVESTMENT IN TO IMPROVE CAPACITY, RELIABILITY, ET CETERA. IS, IS THAT LIKELY TO TURN INTO SURCHARGES AS OPPOSED TO WAITING ANOTHER FIVE YEARS FOR A RATE CHANGE IF IT, UH, I, I, I DON'T, THAT'S NOT, HISTORICALLY THAT'S NOT WHAT I'VE SEEN. WHAT SOMETHING THAT, THE BIGGEST THING THAT TURNED INTO A SURCHARGE FOR IS ARIZONA A WATER COMPANY, WAS WHEN THEY, UM, ACTIVE, UH, WHEN IN 2006 WHEN THE ARSENIC ROLL WENT INTO EFFECT AND THE COMPANY AND A, A LOT OF COMPANIES IN THE INDUSTRY ABSORBED THE COST IT TOOK TO BECOME COMPLIANT WITH ALL OF THEIR FACILITIES, AND THAT THAT WAS A PRETTY HEFTY LIFT FOR ANYBODY AND A REALLY HEFTY LIFT FOR ARIZONA WATER COMPANY. LIKE, LIKE I SHOWED YOU FOLKS. UM, AND, AND JUST IN MY SYSTEMS, I, I MANAGE HERE, I HAVE 14 OF THOSE ARSENIC PLANTS. SO IF SOMETHING LIKE THAT COMES ALONG DOWN THE ROAD, I THINK THE COMPANY WOULD PROBABLY BE ADDRESSING, UH, UM, A SURCHARGE, BUT SOMETHING ALONG THE LINES OF WATER MAIN INFRASTRUCTURE IMPROVEMENT AND SO FORTH. AND WE'RE LOOKING AT OTHER MEANS, UH, HE CAN, NICK CAN MAYBE EXPLAIN THE WILDFIRE PART OF THE, THE EQUATION, BUT THOSE, THOSE TYPE OF PROJECTS WILL ROLL INTO THE, THE MONEY WE'VE ALREADY SPENT FOR THE NEXT RATE CASE. YOU KNOW WHAT I'M SAYING? OKAY. YEAH. OKAY. BUT THEN TOMORROW WE'RE GONNA BE HEARING ABOUT PFAS. AND IS THAT NOT A, DEPENDS ON, YOU JUST TALKED ABOUT ARSENIC, I MEAN, IS THE IMPACT IT DEPENDS ON THE IMPACT. IF WE HAVE TO BUILD A TREATMENT [02:35:01] PLANT FOR ONE, WELL, I DON'T KNOW IF THAT WE COULD EVER JUSTIFY THROUGH THE CORPORATION COMMISSION THAT WE NEED A SURCHARGE TO TREAT THAT ONE WELL, AND SO FAR THAT'S, AND CORRECT ME IF I'M OUTTA LINE, BUT LET, LET, LET ME CLARIFY THAT ONLY BIT, BECAUSE WE TALKED ABOUT PFAS. SO ACTUALLY AS PART OF THIS APPLICATION, I BELIEVE IT WAS PROBABLY INCLUDED ON THE CUSTOMER NOTICES AS WELL. WE DO, WE, WE DID MAKE A REQUEST TO THE CORPORATION COMMISSION TO HAVE A NEW SURCHARGE CUT. IT'S CALLED F-C-C-R-M FEDERAL, UH, UH, I'M TRYING TO THINK, FEDERAL COMPLIANCE, I HAVE TO THINK OF OTHER, THE, THE ACRONYM. SO BASICALLY IT WAS TARGETED TO, TO RECOVER INVESTMENT IN ORDER TO BE IN COMPLIANCE WITH A NEW PFAS RULE. BECAUSE, YOU KNOW, WE ARE CURRENTLY IN THE DESIGN, YOU KNOW, ENGINEERING DESIGN PHASE. WE HAVEN'T REALLY PUT ANYTHING ON THE GROUND AND TO HAVE THOSE TREATMENT. AND WE ALSO HAVE THIS, I THINK IT WAS FIVE YEAR WINDOW TO BE IN COMPLIANCE. SO WE ARE IN THE MIDDLE OF DESIGNING THAT, BUT BECAUSE OF HOW LONG THOSE RATE CASE TAKES AND, AND ALSO WHEN NOT FILING RATE CASES EVERY YEAR. SO THOSE, THOSE KIND OF INVESTMENT WILL HAVE TO HAPPEN IN BETWEEN RATE CASES. AND WE ARE ALSO KIND OF REQUIRED BY THE FEDERAL GOVERNMENT, BY THE EPA TO, TO, TO MAKE THOSE INVEST INVESTMENT IN ORDER TO BE, TO BE COMPLIANT. SO THAT'S WHY WE THINK SURCHARGES TO ADDRESS THAT PARTICULAR ISSUE HAS ITS MERIT. SO THAT'S WHY, UH, MR. COUNSELOR, I WAS SAYING, UH, SO MOST OF OUR SURCHARGE, I WOULD SAY ALL OF OUR SURCHARGES HAVE ITS VERY SPECIFIC PURPOSE. I I GET THAT. YEAH. SO NOW WHAT YOU'RE SAYING IS YOU'RE ALREADY TRYING TO GET A SURCHARGE FOR PFAS AND IT'S PART OF THIS RATE CASE. IS THAT FACTORED INTO THIS PROPOSED MONTHLY BILL, OR IS THAT A NEW SURCHARGE THAT'S GONNA BE ADDED ON TO THIS AS WELL? SO WHEN, WHEN WE MAKE THE SURCHARGE REQUEST AS PART OF THE RATE CASE, WHAT THE COMMISSION APPROVES IS NOT ACTUALLY A DOLLAR CHARGE. THEY APPROVE ACTUALLY THE MECHANISM. SO WE HAVE THIS MECHANISM WHEN WE MAKE THIS INVESTMENT IN THE FUTURE, WE CAN COME BACK TO THE COMMISSION AND MAKE THE REQUEST OF THE SURCHARGE TO REFLECT THE SPENDING AT THAT POINT. SO THE COMMISSION IS NOT REALLY AS PART OF THIS RATE CASE TO APPROVE ANY DOLLAR MONTHS FOR ANY OF OUR SURCHARGES. IT'S JUST A MECHANISM. SO FOR OKAY, BUT YOU'RE TRYING TO GET THE MECHANISM APPROVED RIGHT NOW FOR INVESTMENTS YOU'VE NOT YET MADE, AND THEN AS SOON AS YOU MAKE THEM, YOU'RE GONNA BE PRESENTING THE INFORMATION AND THEN THEY SHOULD RUBBER STAMP YOUR REQUEST FOR A SURCHARGE AT THAT POINT, BECAUSE THEY'VE ALREADY APPROVED YOUR METHODOLOGY, IS WHAT I HEAR YOU SAYING. I WOULD. SO WE SHOULD EXPECT THERE'S GONNA BE MORE CHARGE, THERE'S GONNA BE A NEW SURCHARGE ON TOP OF THIS BEFORE THE NEXT RATE CASE AFTER THIS COMES ALONG. UH, I WOULDN'T USE THE WORD, YOU KNOW, RUBBER STAMP BECAUSE THEY DO SPEND A LOT OF TIME TO REVIEW, AND WE DO HAVE TO PROVIDE ALL THE EVIDENCE AND, AND ALSO MOST OF OUR SURCHARGES, ONE OF THE REQUIREMENT AS PART OF THOSE MECHANISMS, WE HAVE TO PROVIDE NOTICES. SO THERE IS CHECKS AND BALANCES THERE. AND I'M NOT TRYING TO GET COMBATIVE WITH YOU, BUT THE REALITY IS, I MEAN, THE A CC IS AWFULLY FRIENDLY TO UTILITIES IN THIS STATE, GENERALLY SPEAKING, AND THEY'RE IN THE PROCESS OF MAKING IT EASIER TO GET ANNUAL RATE INCREASES AS IT IS. SO I'M JUST WANTING TO BE ABLE TO SET EXPECTATIONS WITH OUR RESIDENTS. AND WHAT I HEAR YOU SAYING IS IT IS VERY LIKELY THAT AN ADDITIONAL SURCHARGE FEE AMOUNT, TBD, BUT AN ADDITIONAL SURCHARGE WILL GET ADDED ON TO THIS SOMETIME BETWEEN WHEN THIS RATE CASE IS SETTLED AND WHEN THE NEXT RATE CASE COMES ALONG. YOU, YOU ARE GONNA BE TRYING TO GET ANOTHER SURCHARGE IN HERE. THAT IS CORRECT. AND YOU DO NOT KNOW WHAT THAT AMOUNT IS. RIGHT NOW WE DON'T BECAUSE WE HAVE TO MAKE, LIKE I SAID, WE HAVE TO MAKE THOSE INVESTMENT FIRST BE BEFORE WE CAN'T EVEN GO TO THE COMMISSION TO MAKE THOSE REQUESTS. AND, AND ONE OF THE THINGS I DO WANT TO EMPHASIZE, YOU KNOW, BECAUSE THAT WAS, YOU KNOW, I I WASN'T EXPECTING A LOT OF QUESTIONS ON SURCHARGES. I APPRECIATE THAT. SO I MAYBE GIVE ME AN OPPORTUNITY TO SHARE MY OPINION, ACTUALLY TO PROBABLY SHARE OPINION BY A LOT OF UTILITIES AND, YOU KNOW, AND, AND, AND COMMISSION ACROSS, YOU KNOW, ACROSS THE COUNTRY STATE COMMISSIONS. SO THOSE SURCHARGES WERE CREATED NOT ONLY IN ARIZONA, I MEAN NOT ONLY FOR ARIZONA WATER, FOR ALL KINDS OF UTILITIES. A PS HAVE MULTIPLE SURCHARGES. THOSE WERE REALLY TO USE TO ADDRESS, YOU KNOW, UH, LIKE I SAID, SPEC, UH, SPECIFIC PURPOSES BECAUSE THE COMMISSION NOTICES, YOU KNOW, WHEN YOU HAVE RATE CASES IN BETWEEN EACH OTHER FOR A FEW YEARS, YOU NORMALLY ACCUMULATE THOSE INCREASES. AND THOSE SURCHARGES WERE HELPED TO KIND OF SMOOTH THIS INCREASE OUT, UH, IN BETWEEN RATE CASES. BECAUSE ONE OF THE THINGS, THE COMMISSION, AND I THINK US, YOU KNOW, WE, WE BELIEVE THE GRADUALISM IN RATES. SO LIKE FOR INSTANCE, IN THIS CASE, THIS $3 75 CENTS, IF WE DON'T HAVE THE SURCHARGES, THE CUSTOMER WILL SEE A [02:40:01] HIGHER INCREASE, YOU KNOW, AFTER THE END OF THIS RATE CASE BECAUSE IT WASN'T SMOOTHED OUT, YOU KNOW, OVER, YOU KNOW, WHEN WE WERE OUT OF THE RATE CASES. SO I THINK THAT'S ONE OF THE BIGGEST BENEFIT, OR, YOU KNOW, A MAJOR BENEFIT FOR HAVING SURCHARGES. THANK YOU. THANK YOU, MAYOR. THANK YOU, MELISSA. SO LET ME JUST TRY TO GET SOME CLARITY ON ALL OF THIS CONVERSATION WE JUST HAD. UM, WHEN THIS RATE CASE GOES THROUGH ON THE ASSUMPTION THAT IT WILL BE APPROVED, WHATEVER IT IS, WHAT I BELIEVE I HEARD YOU SAY WAS THE $3 AND 75 SURCHARGE WILL GO AWAY BECAUSE YOU'VE ABSORBED IT NOW INTO WHAT MY MONTHLY FEE THAT'S RIGHT, IS GOING TO BE ON TOP OF THAT MONTHLY FEE, WHICH YOU'VE GOT HERE, $60. UM, ON, ON YOUR SLIDE HERE, UM, THAT $60 WILL INCLUDE THE 3 75, BUT AT SOME POINT IN TIME BETWEEN 2025 AND SAY 2030, YOU ARE GOING TO HAVE ANOTHER SURCHARGE APPLIED TO MY BILL, AND THAT THAT SURCHARGE WOULD BE FOR PFAS ON THE ASSUMPTION THAT PFAS WILL GO THROUGH AND IT'S GOING TO REQUIRE, YOU KNOW, WHATEVER IT IS IT'S GOING TO REQUIRE AT THIS POINT IN TIME. MY UNDERSTANDING IS THAT YOU'RE ALREADY SORT OF PREPPING FOR THE IDEA OF HAVING THIS SURCHARGE FOR PFAS, BUT NOT AN AMOUNT, BECAUSE AT THIS POINT IN TIME YOU DON'T KNOW WHAT YOUR COSTS ARE YET GOING TO BE AND HOW YOU'RE PLANNING ON LEVERAGING THAT OUT WHEN YOU'RE GOING IN FRONT OF THE COMMISSION AND SAYING, HEY, WE WANT TO PREP FOR A SURCHARGE. DO YOU NEED TO GO BACK TO THE COMMISSION AND SAY, HERE'S HOW MUCH WE NOW WANT TO CHARGE? OR IS IT SORT OF A BLANK CHECK THAT SAYS, OKAY, YOU SAID YOU WERE GOING TO DO A SURCHARGE. WE'VE AGREED YOU PROBABLY WILL NEED A SURCHARGE BETWEEN NOW AND 2030, BUT WE, WE DON'T HEAR YOUR CASE AGAIN TO SAY WHETHER OR NOT WE BELIEVE THE $4 OR WHATEVER IT IS YOU WANT TO CHARGE IS THE RIGHT AMOUNT. SO THAT'S THE PART THAT I AM NOT CLEAR ON. DOES THAT MAKE SENSE? YES. OKAY. COULD, COULD YOU PLEASE ANSWER THAT? YES, THANK YOU. SO, SO, UH, LIKE, WAS THAT CORRECT IN ALL THE REST OF IT? ? SO LIKE I MENTIONED, SO WHEN THE COMMISSION, UH, IF THEY APPROVE THE MECHANISM, LIKE I MENTIONED FOR, FOR THE PFAS, UH, OR WHAT WE CALL THE FCC RM, SO IF THEY APPROVE THE MECHANISM LIKE THAT, SO THERE WILL BE, UH, THERE IS, THERE WILL BE ACTUALLY BE A DOCUMENT CALLED POA PLAN ADMINISTRATION. SO IT HAS A VERY DETAILED REQUIREMENT OF LIKE, SOME OF THINGS THAT WILL REQUIRE US TO PROVIDE EITHER A SEMI-ANNUAL OR ANNUAL STATUS UPDATE. AND WHEN WE ACTUALLY REQUEST A DOLLAR SURCHARGE, WE HAVE TO ALMOST LIKE, SIMILAR TO THE RATE CASE FILINGS, WE HAVE TO PRESENT THE CALCULATIONS WITH ALL THE DETAILS FOR THE COMMISSION TO REVIEW. SO IT'S NOT, WE JUST SAY, THIS IS SURCHARGE, THEY WILL APPROVE IT. SO SOMETIMES THEY COME BACK WITH A DIFFERENT AMOUNT BECAUSE THEY WILL, YOU KNOW, THEY HAVE THEIR OWN PERSPECTIVE ON THINGS AND THEY MIGHT SEE, UM, SOME OF THINGS THEY, THEY, THEY THINK SHOULDN'T BE RECOVERED AT THE, AS PART OF THE SURCHARGE, YOU'D BE DEFERRING INTO THE, INTO THE NEXT RAY CASE. SO THERE WILL BE A LOT OF SCRUTINY ON SURCHARGES, AND EVENTUALLY WHEN THE COMMISSION STAFF MADE THEIR RECOMMENDATION, THE FIVE ELECTED COMMISSIONERS THERE WAS, SORRY, THEY WILL STILL HAVE TO VOTE. AND, AND THAT'S WHEN WE, WE WILL GET QUESTIONS FROM COMMISSIONERS VERY LIKELY AS WELL. SO THERE IS A PROCESS FOR THE, THE, FOR THE PRUDENCY REVIEW AND THE, THE, THE MERIT OF THE, OF THE SURCHARGE. SO THE PROCESS FOLLOWS THIS PROCESS YOU'RE GOING THROUGH FOR THE RATE CASE, BUT WITH A SHORTENED TIME PERIOD FROM WHAT YOU HAD SAID EARLIER, WHEN YOU DO A SURCHARGE, BECAUSE THIS, THIS LOOKS LIKE IT'S GONNA TAKE A FAIRLY LONG TIME FOR YOU TO DO THE RATE CASE, INCLUDING PUBLIC HEARINGS. YEAH. WHEN YOU DO THE SURCHARGE, IT SOUNDED LIKE IT TAKES A SHORTER PERIOD OF TIME FOR YOU TO GET APPROVAL. ARE THERE PUBLIC HEARINGS AND IS IT IT IS SHORTER TIME. UH, SO IT'S A SHORTER AMOUNT OF TIME, NOT BECAUSE THEY ARE REVIEW LESS. IT'S A SHORTER AMOUNT OF TIME BECAUSE IT'S A MUCH SMALLER SCOPE, BECAUSE, YOU KNOW, IN THIS RATE CASE, THEY'LL LOOK AT EVERYTHING, THEY'LL LOOK AT PIPELINE, THEY'LL LOOK AT, WELL, THEY'LL LOOK AT LIKE, YOU KNOW, BOOSTER PUMP STATIONS, BUT IN A, IN A, IN A SURCHARGE REVIEW, THEY JUST FOCUS ON THAT PARTICULAR SURCHARGE. LIKE FOR INSTANCE, WE TALK ABOUT PFAS, SO WE ONLY NEED TO PROVIDE THE EVIDENCE OF THE PFAS RELATED INVESTMENT. SO THEY HAVE TO SEE EVERYTHING RELATED TO THAT. IN, UH, IN TERMS OF HEARINGS, UH, MOST LIKELY THERE WOULDN'T BE A HEARING FOR A SURCHARGE REVIEW, BUT THERE WILL BE A COMMISSION VETTING. SO IT'S KIND OF ANOTHER FORM OF THE, UH, OF THE HEARING BECAUSE IT WILL GO. SO THOSE WILL BE PUBLIC BROADCASTED, YOU KNOW, THE COMMISSION WILL DISCUSS ON THIS PARTICULAR SURCHARGE. THEY MIGHT CHOOSE TO HAVE QUESTIONS OR AMENDMENT, [02:45:01] AND THAT WILL BE THE, THE KIND OF A HEARING LIKE PROCESS, BUT IT'S NOT GONNA BE PRESIDED BY A ADMINISTRATIVE LAW JUDGE. OKAY. BRIAN, THANK YOU. SO JOHN, YOU MENTIONED LIKE FOR THE SURCHARGE FOR ARSENIC C IT WAS WHAT, 16, UH, WELLS THAT HAD TO BE TREATED, SOMETHING LIKE THAT? WAS THAT IN SEDONA? NO, JUST IN GENERAL. THAT JUSTIFIED THE 3 75. I HAVE 14 IN MY DIVISION. WHAT ALL JUSTIFIED THE SURCHARGE? I, I'M NOT AWARE OF. OKAY. AND BACK OF THE ENVELOPE TREATING ARSENIC C TREATING PFAS, THIS SIMILAR. WHAT DO WE THINK? BECAUSE I MEAN, WE'RE, WE'RE, LOOK, BECAUSE TOMORROW WE'RE GONNA GET PRESENTED THE POSSIBILITY OF LIKE $30 MILLION TO TREAT TREATED EFFLUENT FOR PFAS. OH, THAT'S EFFLUENT. I KNOW. , I KNOW. YEAH. THAT'S AN ENGINEERING QUESTION. UH, WHOEVER'S DOING, WHO'S WHOEVER'S CRUNCHING THOSE NUMBERS, WE HAVEN'T, WE'RE IN A DESIGN PHASE FOR, UM, SOME OF OUR PLANTS, BUT THE DESIGN PHASE MEANS THAT THEY'RE STILL ACTUALLY LOOKING AT A METHOD OF TREATMENT. MM-HMM . SO WHAT THAT'S GONNA COST AS COMPARED TO WHAT IT TOOK TO REMOVE THE ARSENIC, I DON'T KNOW. UM, WHAT I'M HEARING IS THAT THE PROCESS ISN'T AS COMPLICATED, BUT I'M NOT SURE WHERE WATER QUALITY PLAYS INTO THAT EITHER. SO THERE'S, IT IS STILL KIND OF UNKNOWN, UNKNOWN TO HOW IT'S GONNA COMPARE. I MEAN, I'M JUST TRYING TO GET AT, IS THIS BIGGER THAN A BREAD BOX, RIGHT? LIKE LITERALLY, YEAH. YOU KNOW, LOOKING AT THESE NUMBERS FOR OUR EFFLUENT, IT'S LIKE, OH MY GOSH, SO ARE WE LOOKING AT A 10, 15, $20 SURCHARGE FOR PFAS? THAT THAT'S WHAT, THAT'S REALLY WHERE I'M GOING WITH CONTINUING TO PRESS DOWN THIS PATH. SO I UNDERSTAND YOU DON'T KNOW, BUT I GOTTA ASK BECAUSE OUR RESIDENTS WANT TO KNOW, AND EVEN A DOLLAR OR TWO ADDITIONAL SURCHARGE, TWO YEARS FROM NOW, AFTER YOU PRESUMABLY GET THIS, THEY'RE NOT GONNA BE REAL HAPPY ABOUT IT. AND IF IT'S 8, 10, 12, $15, THEY'RE GONNA REALLY BE UNHAPPY ABOUT IT. SO ANYWAYS, THANK YOU. OKAY. AND KATHY, MY QUESTION IS NOT ABOUT SURCHARGES. UM, FIRST OF ALL, THANK YOU FOR, YOU KNOW, WORKING TO ADDRESS SOME OF OUR INFRASTRUCTURE NEEDS AND, UM, AS YOU KNOW, WE VOICED OUR CONCERNS ABOUT FLOW RATES AND WATER PRESSURE FOR FIRE SUPPRESSION, AND ALL OF THOSE QUESTIONS AND CONCERNS REMAIN ON THE TABLE. BUT I WANNA RAISE SOMETHING A LITTLE DIFFERENT AT THE MOMENT, WHICH IS ABOUT YOUR TIERED RATE STRUCTURE. SO WE HAVE A NUMBER OF, UM, HOMEOWNER ASSOCIATIONS WITHIN SEDONA. THE HOMEOWNER PAYS THE HOA PAYS THE WATER BILL IN MANY OF THESE CASES, NOT THE INDIVIDUAL RESIDENCE. UM, BECAUSE OF THAT, YOU HAVE MULTIPLE HOMES ON A METER. SO YOU ARE A, AS I READ IT THROUGH YOUR APPLICATION, YOU'RE APPLYING IN YOUR TIERED STRUCTURE, A MULTIFAMILY HOUSING, UH, RATE STRUCTURE, UH, RATE TIER TO THOSE HOMES, UH, TO THAT HOA. BUT THE INDIVIDUAL HOMES ARE, THEY ARE THAT THEY ARE INDIVIDUAL HOMES, THEY'RE SINGLE FAMILY HOMES. THEY HAPPEN TO BE IN AN HOA, BUT YOU'RE TREATING, BUT THEY'RE BEING TREATED AS AN HO, AS A MULTIFAMILY. SO THEY'RE GETTING A HIGHER RATE INCREASE, WHICH DOESN'T SEEM, IF I READ THAT CORRECTLY, AND THAT'S WHAT I WANT YOU TO SPEAK TO. DID I READ THAT CORRECTLY? AND IT DOES SEEM A LITTLE BIT, UM, UNFAIR BECAUSE THESE, THESE HOMES ARE TREATED AS SINGLE FAMILY RESIDENCES FOR TAX PURPOSES, FOR UTILITY PURPOSES, FOR FEE PURPOSES WITHIN THEIR HOA, FOR THEIR OWN MAINTENANCE COSTS OUTSIDE OF WHAT IS COVERED IN AN HOA, YET THEY'RE BEING ASSESSED TOGETHER BECAUSE THEY'RE SHARED ON A METER. UH, AND AS I SAID, IT SEEMS TO BE A, UM, INEQUITABLE STRUCTURE THAT'S BEING APPLIED TO THAT. COULD YOU SPEAK TO THAT PLEASE? SO, UH, MADAM COUNSELOR, I, I'M NOT QUITE SURE ABOUT, YOU KNOW, WHICH PARTICULAR CUSTOMERS YOU WERE TALKING ABOUT, BUT I CAN SPEAK ON THAT GENERALLY. SO, UH, I, UH, SO BASICALLY OUR RACE, UH, DESIGN BASED ON THE METER SIZES MM-HMM . SO LIKE FOR INSTANCE, IF YOU'RE TALKING ABOUT MULTIPLE HOMES BELONGS TO ONE HOA AND THEY HAVE ONE METER, I ASSUME THEIR METER SIZES WOULD BE BIGGER THAN, UH, THE ONE SINGLE FAMILY HOME METER. BUT WAIT, LET ME GIVE YOU AN EXAMPLE. A 66 UNIT HOA IS ON FIVE METERS. SO YOU'RE TALKING ABOUT ROUGHLY, ALTHOUGH IT'S NOT EXACT, 13 HOMES PER METER. SO, OKAY. SO, SO, BUT EACH OF THE METER, THEY WILL HAVE A SIZE, YOU KNOW, UH, ASSIGNED TO THAT. SO OUR RATES ARE DESIGNED FOR DIFFERENT SIZES. SO BASICALLY DIFFERENT METER SIZES DOES PAY DIFFERENT RATES. UH, IT'S NOT COMPLETELY PROPORTIONAL TO THE, UH, TO THE [02:50:01] USAGE, THAT'S FOR SURE. UM, BUT I DON'T KNOW, PARTICULARLY FOR THIS CASE, IF THEIR RATE INCREASES IS, IS HIGHER, UH, RELATIVE TO, YOU KNOW, TO THE AVERAGE. BECAUSE WHEN WE TALK ABOUT THE 48%, OH, SORRY. WHEN WE TALK ABOUT THE THREE, THREE, 6% OF THE BILLING PACK TO OUR AVERAGE RESIDENTIAL CUSTOMERS, THAT APPLIES TO OUR SMALLEST METER, WHICH IS A FIVE A INCH, UH, SINGLE FAMILY, UH, HOME METER. AND IT'S FOR AVERAGE USAGE ABOUT 4,200, UM, GALLONS PER MONTH. SO BASED ON DIFFERENT USAGE THAT DOES HAVE A DIFFERENT RATING PACT BECAUSE, BECAUSE OF A TIER RATE, SO IF YOU USE MORE THAT PUSH YOU TO A TO TO A HIGHER TIER, SO THAT COULD POTENTIALLY END UP WITH A RELATIVELY HIGHER RATE INCREASE THAN AVERAGE. RIGHT. SO, SO THE HOA IS GOING TO BE UNDER THAT SCENARIO CHARGED A HIGHER RATE THAT THEY'RE GOING TO PASS ON TO THE INDIVIDUAL RESIDENCES THAT ARE PART OF THE HOA ARE GONNA BE PAYING THAT HIGHER RATE PER HOME. IT JUST SEEMS INEQUITABLE. DO YOU AGREE ? UH, I DON'T PARTICULARLY AGREE. GET A QUESTION FOR YOUR QUESTIONS. I WAS GETTING THERE. I DON'T PARTICULARLY AGREE. UH, BUT, YOU KNOW, BUT RESPECT RESPECTFULLY. UH, SO, UH, LIKE I SAID, THE REDESIGN IS BASED ON, BASED ON THE METER SIZES. I THINK, YOU KNOW, UH, I DON'T KNOW WHY THE HOA SET UP, YOU KNOW, THAT WAY TO HAVE THIS KIND OF LIKE, I WOULD SAY AGGREGATE METER INSTEAD OF INDIVIDUALLY CUSTOMER BEING METER. I DON'T, I MEAN THEY, THEY HAVE DIFFERENT REASONS. IT'S QUITE COMMON HERE THOUGH, AND IT'S, YOU KNOW, SOME OF IT GOES BACK TO PRE SEDONA CITY INCORPORATION, I THINK. I KNOW, I THINK I KNOW WHERE YOU'RE TALKING OF THE FIVE METERS IN THIS, AND, AND THAT IS, YOU PROBABLY DO THAT IS AN OLD, THAT IS AN OLDER SETUP, BUT THERE'S SEVERAL, I MEAN, I'M AWARE OF SEVERAL OF THESE HOAS IN THIS, THIS SITUATION UNDERST YEAH. BUT SORRY, IF SOMEBODY WERE TO GO BUILD THAT NOW, UM, IT WOULD, IT WOULD BE, IT WOULD BE SERVED DIFFERENTLY. YEAH. RIGHT. BUT YEAH, BEFORE US TO, YOU KNOW, I JUST WANT ADD ON WHAT JOHN HAS SAID. SO FOR US TO ACTUALLY BUILD CUSTOMERS, LIKE I SAID, SO WE ARE REGULATED TO EVERY ASPECT OF HOW WE DO BUSINESS. SO WHEN WE GO INTO A RATE CASE, WHEN WE TALK ABOUT THOSE RATES, THERE WILL BE A, THERE WILL BE A DOCUMENT CALLED TARIFF, AND THAT WILL BE, HAVE TO BE STAMPED AND APPROVED BY THE COMMISSION. AND THAT GOES INTO THE DETAILS OF THE CUSTOMER CLASS AND THE METER SIZE. AND THAT'S THE ONLY KIND OF DOCUMENT WE CAN CHARGE CUSTOMER BASED ON. SO I UNDERSTAND THERE ARE SOME, YOU KNOW, UNIQUE SCENARIOS AS YOU WERE DESCRIBING, BUT WE HAVE TO GO WITH THE, THE, THE METER SIZE. YES. SO YOUR APPLICATION THOUGH, DOESN'T TAKE THOSE TYPES OF SCENARIOS INTO CONSIDERATION, DOES IT? WHAT DO, UH, I'M SORRY, I JUST WANT TO CLARIFY. SO ALL OF THOSE, ALL OF THOSE CUSTOMERS, IF THEY ARE, YOU KNOW, IN OUR SYSTEM AS OF TODAY, THEY ARE PART OF THE RAY CASE BEING INCLUDED. YEAH. BY METER SIZE IT DOES, YEAH. BY METER SIZE IT, RIGHT? BUT IT DOESN'T TAKE INTO CONSIDERATION, RIGHT, THE WHAT GOES ON BEYOND THE METER. CORRECT. THAT THERE ARE MULTIPLE SINGLE FAMILY RESIDENCES CONNECTED TO THE METER. THEY'RE BEING CHARGED AT A MULTI RATE. I THINK THAT'S, I MEAN, IT'S A HIGHER RATE. YOU HAVE A RATE TIER HERE FOR SINGLE FAMILY HOMES. YOU HAVE A RATE TIER HERE FOR MULTIPLE FAMILY HOMES. THEY'RE SINGLE FAMILY HOMES THAT HAPPEN TO BE CONNECTED TO ONE METER. SO YOU'RE CHARGING THE HIGHER RATE. AND I'M ASKING IF, IF THAT WAS CONSIDERED IN YOUR APPLICATION AND IF YOU WOULD, YOU KNOW, TAKE ANOTHER LOOK AT THAT BECAUSE IT SEEMS, AS I SAID, THERE'S AN INEQUITY HERE AND WE HAVE A NUMBER OF HOAS WITHIN OUR COMMUNITY THAT ARE FACING THIS SITUATION. SO IS THAT SOMETHING THAT IT'S TOO LATE FOR YOU TO LOOK AT? UH, TO BE VERY HONEST, BECAUSE IT WAS NOT REALLY INCLUDED IN OUR ORIGINAL VACATION. SO THAT'S SOMETHING, YOU KNOW, UM, THE COMMISSION MIGHT CONSIDER. UM, BUT I, I, I DO HAVE TO, TO EMPHASIZE THAT WE CHARGE CUSTOMERS BY THE METER SIZE THAT ACCORDING TO THE TARIFF APPROVED BY THE COMMISSION, BUT IT GOES BACK TO, YOU KNOW, UM, SO WHEN WE ARE TALKING ABOUT THEY'RE BEING CHARGED HIGHER, BUT THAT'S RELATIVE BECAUSE THE METER SIZE IS BIGGER. SO MAYBE WHAT WE COULD LOOK INTO IN THIS SCENARIO, WE CAN LOOK AT, YOU KNOW, UM, BASED ON THEIR USAGE, BASED ON THEIR AVERAGE SINGLE FAMILY USAGE, WE CAN TRY TO COMPARE IF THEY HAVE BEEN SINGLED OUT AS A SEPARATE METER, WOULD THAT BE DIFFERENT? BECAUSE WITHOUT LOOKING AT THEIR ACTUAL BILL, I COULDN'T SAY THEY'RE ACTUALLY RELATIVELY HIGHER. I THINK WHAT WE ARE TALKING ABOUT HIGHER IS THE ABSOLUTE, BECAUSE WHEN THE METER SIZE GOES HIGHER, THE RATES WILL BE HIGHER. UM, BUT, BUT CONSIDER THAT'S BEING SHARED BY, I, I DON'T KNOW HOW MANY UNITS GOES TO ONE METER, BUT THAT'S BY, SHARED BY MULTIPLE CUSTOMERS WHEN YOU DIVIDE IT BY THE NUMBER OF UNITS, MAYBE EACH OF THE UNIT IS PAYING IN, UH, IN A RELATIVELY SIMILAR AMOUNT IF THEY ARE SINGLE FAMILY. SO [02:55:01] I HAVE TO, WE, WE CAN LOOK INTO THAT IF, IF, IF THAT'S SOMETHING YOU WANT US TO, TO, TO REALLY LOOK INTO, BECAUSE I CANNOT REALLY SPEAK ON THAT WITHOUT HAVING THE DATA AVAILABLE. THANK YOU. I APPRECIATE YOUR WILLINGNESS TO LOOK INTO THAT, AND I LOOK FORWARD TO FOLLOWING UP WITH YOU ON THAT. OKAY. ARE YOU GOOD? MM-HMM . OKAY. CAN THE COUNCIL TRY TO KEEP THESE COMMENTS AND QUESTIONS MORE HIGH LEVEL FOR THE REST OF THIS DISCUSSION? THAT WAS PRETTY, NO, IT WAS KIND OF IN THE WEEDS, SO NOT REALLY. I'M GONNA ASK YOU. OKAY, THANK YOU. I HAVE A QUESTION. I WAS READING YOUR RATE CASE JUSTIFICATION. SOME OF THAT HAD TO DO WITH THE RATE OF RETURN. YES. OKAY. AND YOU WERE TALKING ABOUT YOUR INVESTORS DESERVE, YOU KNOW, APPROPRIATE RATE OF RETURN. YES. BUT YOU'RE A 5 0 1 C3 CORPORATION. WHO ARE YOUR INVESTORS? SO OUR INVESTORS ARE OUR SHAREHOLDERS. AND, UM, SO WE'RE A FAMILY OWNED BUSINESS. AND I THINK IT'S SIMILAR TO, YOU KNOW, TO ANY REGULATED UTILITIES IN ARIZONA, LIKE FOR INSTANCE, LIKE A PS OR SOUTHWEST GAS WHO ALSO SERVE THE SEDONA COMMUNITY. THEY'RE A LITTLE BIT DIFFERENT THAT PROBABLY LISTED, UH, COMPANY, THEY HAVE MULTIPLE SHAREHOLDERS. BUT WE GO THROUGH THE SAME PROCESS WITH THE COMMISSION TO DETERMINE THE RATE OF RETURN FOR THOSE EQUITY INVESTMENT BECAUSE, UH, EACH, MOST OF UTILITIES HAVE FINANCING TWO PARTS. YOU HAVE THE DEBT AND YOU HAVE THE EQUITY. SO THE DEBT, WHICH IS LIKE A LOAN OR YOU KNOW, OR, OR A BOND THAT, THAT WAS ISSUED BY A BANK OR FINANCIAL INSTITUTION. THEN YOU ALSO HAVE THOSE INVESTORS WHO ARE EQUITY HOLDERS OF THE COMPANY. AND THAT'S A, THAT'S A PART OF THE COMMISSION ACTUALLY DETERMINING EVERY RATE CASE. HOW CAN YOU, THAT'S IF YOU'RE A 5 0 1 C3, HOW DO YOU HAVE EQUITY OWNERS? IS THAT UNIQUE TO THE UTILITY INDUSTRY? I'M NOT QUITE SURE IF WE ARE 5 0 1. YEAH, MAYOR AND COUNCIL, THEY'RE LISTED ON THE ARIZONA CORPORATION COMMISSION AS THE DOMESTIC FOR-PROFIT CORPORATION. YEAH. BUT, UH, 5 0 1 C3 FOR PROFIT DOESN'T SAY WHAT, I MEAN THE 5 0 1 CS ARE THE FEDERAL DESIGNATION ON THE ARIZONA CORPORATION COMMISSION. THEY'RE LISTED AS A FOR-PROFIT BUSINESS. OKAY. 'CAUSE I HAVE IT RIGHT IN FRONT OF ME WHERE IT SAYS IT'S A 5 0 1 C3 NONPROFIT, BUT MAYBE THERE'S A DI SOUNDS LIKE AN OXYMORON. YEAH, IT DOES. MAYBE THERE'S A FOUNDATION OR SOMETHING THAT THEY'RE REFERRING TO IT STATE VERSUS FEDERAL, I DUNNO. YEAH. UH, SO I, I CAN ASSURE YOU'RE NOT A PUBLICLY TRADED CORPORATION. WE'RE NOT. UM, BUT, BUT WE ARE A FOR-PROFIT CORPORATION. OKAY. YEAH. WE'RE NOT 5 0 1 C AND, YOU KNOW, SIMILAR TO, LIKE I SAID, MOST OF THE UTILITIES REGULATED BY THE, BY THE COMMISSION THAT FOR-PROFIT, BUT THERE ARE NON-FOR-PROFIT UTILITIES OUT THERE. UM, SOME OF THEM THAT CONSIDER AS A CO-OPS COOPERATIVES, SO THEY'RE OWNED BY THE MEMBERS. THAT'S A VERY DIFFERENT SCENARIO. THANK YOU. OF COURSE. ANY OTHER QUESTIONS, COMMENTS? WE'RE NOT DONE. OKAY. CONTINUE ON. OKAY. I, I WILL TRY TO WRAP, WRAP UP THIS UP VERY QUICKLY. SO ONE OF THE THINGS ON THIS SLIDE I DO WANNA MENTION IS, YOU KNOW, WE, WE DO UNDERSTAND THOSE, UH, THOSE, THOSE BILLING IMPACT TO OUR CUSTOMERS. SO THAT'S WHY WE STILL PROPOSE WITH THE COMMISSION TO CONTINUE OUR CURRENT, YOU KNOW, UH, BILL ASSISTANCE PROGRAM. SO, WHICH PROVIDE A, A MONTHLY BILL DISCOUNT TO OUR CUSTOMERS, QUALIFY LOW INCOME CUSTOMERS AND ACTIVE MILITARY MEMBERS. SO THAT'S KIND OF THE WAY FOR US TO MITIGATE SOME OF THOSE INCREASES AND TO REALLY TO HELP THE, UH, THE CUSTOMERS IN NEED. BUT GOING BACK TO WHAT MY COLLEAGUES WERE TALKING ABOUT BEFORE, OF THE SURCHARGE, I'M NOT GONNA TALK ABOUT SURCHARGE, BUT YOU'VE GOT THIS RATE, WHATEVER, IT'S GONNA BE INCREASE, THEN YOU HAVE THIS SURCHARGE THAT'S GOING TO BE COMING THROUGH AND AT SOME POINT IN THE FU NEAR FUTURE, AND THEN YOU HAVE AN ANNUAL INCREASE THAT THE COMMISSION IS JUST GRANTED. UH, UH, CAN I CLARIFY ON THAT ANNUAL INCREASE? YES, PLEASE. OKAY. SO I THINK THERE HAS BEEN SOME MISUNDERSTANDING. I KINDA READ THE, UH, SOME, SOME ARTICLES ABOUT THAT AS WELL. UH, SO, SO THE, THE, THE ANNUAL INCREASES RELATED TO A, A POLICY STATEMENT THAT WAS PASSED BY THE COMMISSION BACK IN DECEMBER, THE PAST DECEMBER, LIKE MONTHS AGO. SO, UH, SO WHAT THEY PASSED THE POLICY STATEMENT, IT'S NOT REALLY JUST TO SAY YOU CAN DO THE ANNUAL INCREASE. WHAT THEY DID IS THEY PASSED WHAT THEY CALL THE FORMULA RATES. I'LL BE VERY BRIEF ABOUT THAT. SO BASICALLY, YOU KNOW, AND IT'S AN OPTION AND, AND WHICH THEY, THEY MADE THIS POLICY, YOU KNOW, DECISION AFTER WE FILED THE RATE CASE. SO I CAN, IT'S NOT, IT'S CURRENTLY NOT IN OUR PENDING APPLICATION THAT WE'RE TALKING TODAY, BUT THAT DID PROVIDE UTILITY AN OPTION TO DO, TO DO THIS ANNUAL ADJUSTMENT ON THEIR RATES TO REFLECT THEIR INVESTMENT AND THEIR EXPENSE LEVELS. [03:00:01] AND ALSO, I WANNA MAKE SURE THAT DOESN'T, SO IT'S NOT REALLY ANNUAL INCREASE, IT'S ANNUAL ADJUSTMENT BECAUSE IT COULD GO UP OR DOWN. IT REALLY DEPENDS ON HOW THEY UTILITY MANAGE THEIR, UM, MANAGE THEIR, THEIR BUSINESSES. BECAUSE UTILITY WHO DON'T INVEST IN THEIR COMMUNITY, WHO DON'T INVEST IN THEIR INFRASTRUCTURE, THEY COULD POTENTIALLY, IN THEORY, END UP A RATE DECREASE. I THINK THAT'S WHERE THE COMMISSION WANTS TO MAKE SURE THE, UH, THE RATES IS A TRUE REFLECTION OF YOUR COST OF SERVICE, BUT ALSO THAT ANNUAL INCREASE WILL STILL HAVE TO BE VETTED BY THE COMMISSION. AND THERE'S CHECKS AND BALANCES IN THAT PROCESS AS WELL. THAT'S A VERY PROLONGED PROCESS IN MY OPINION. UH, IT PROBABLY TAKES ABOUT NINE MONTHS TO ACTUALLY PROCESS THIS ANNUAL ADJUSTMENT, BUT THAT'S JUST AN OPTION TO UTILITIES. AND THEY, SINCE THEY JUST PASSED THE, YOU KNOW, THIS POLICY, I MEAN, AS A COMPANY, WE'RE ALSO, WE'RE JUST IN THE PROCESS OF ASSESSING WHAT THIS MEANS TO US. SO CURRENTLY IN THIS RICK CASE, THAT'S NOT WHAT WE'RE REQUESTING. THANK YOU. THANK YOU FOR THAT CLARIFICATION. FOLLOW UP ON THAT MAYOR, PLEASE. UH, JUST TO MAKE SURE, I, I BELIEVE I HEARD WHAT YOU SAID IS THAT IN THE FUTURE, THESE ANNUAL RATE INCREASES WILL HAVE TO BE APPROVED ANNUALLY BY THE COMMISSIONER OR THE STAFF OR THE PROCESS, WHATEVER THE PROCESS IS GONNA BE. YES. IT'S NOT JUST ONCE YOU GET THE MECHANISM PROVE, YOU GUYS DETERMINE WHAT YOUR ANNUAL INFLATION RATE'S GONNA BE. NO, IT'S, IT'S GOTTA BE REGULATED. IT'S, THAT'S RIGHT. AND IT'S STILL CAN, WHAT WE, WE, WE SOMETIMES THINK, YOU KNOW, IN, IN INSIDE JOKE WE TALK ABOUT THOSE WERE CONSIDERED MINI RATE CASES BECAUSE YOU STILL HAVE TO PROVIDE ALL THE EVIDENCE TO SHOW YOUR SPENDING LEVELS TO SHOW THE INVESTMENT YOU, YOU PUT IN THERE WAS PRUDENT AND YOU KNOW, WAS ACTUALLY SPENT. AND PRESUMABLY YOUR NEXT FIVE, IF, IF YOU DID DO AN ANNUAL THING, PRESUMABLY YOUR NEXT FIVE YEAR RATE INCREASE WOULD BE LOWER BECAUSE THAT'S RIGHT. SO YEAH, I THINK, YEAH, ONE OF THE MAJOR BENEFIT I WOULD, I WOULD GO BACK TO, AGAIN, SIMILAR TO THE SURCHARGES, THOSE, THE ANNUAL ADJUSTMENT, IT'S REALLY TO SMOOTH OUT THE RATE INCREASES BECAUSE, UH, WE HAVE TO MAKE INVESTMENT TO OUR INFRASTRUCTURE TO KEEP UP WITH FEDERAL REGULATION AND TO REALLY KEEP US SAFE AND RELIABLE SERVICES TO OUR CUSTOMER, BECAUSE THAT'S OUR COMMITMENT AND THAT'S ALSO REQUIRED FOR US AS WELL. SO, AND THOSE DOESN'T COME AS CHEAP. SO THANK YOU. YEAH, AND, AND TO BE HONEST, THAT'S A GOOD PIVOT FOR MY NEXT SLIDES. SO, UH, SO ONE OF THE THINGS I DO WANNA MENTION IS WE ARE REALLY COMMITTED TO PROVIDE, YOU KNOW, SAFE AND RELIABLE SERVICES TO THE COMMUNITY WE SERVE. AND IN ORDER TO DO THAT, I MEAN INVESTMENT, YOU KNOW, CONTINUE TO MAKE INVESTMENT IN INFRASTRUCTURE IS DEFINITELY NECESSARY. SO, UH, I'M GONNA PASS, UM, PASS ON TO JOHN TO, TO GIVE YOU GUYS A HIGHLIGHT ABOUT WHAT WE ARE ACTUALLY INCLUDING IN THIS THREE CASE FOR THOSE PAST FEW YEARS OF OUR INVESTMENT IN SEDONA. YEAH, I'LL JUST GO THROUGH THE LIST REAL QUICKLY HERE, BUT THESE ARE, IT IS, IT IS A LIST OF THE PROJECTS THAT WE'VE DONE SINCE 2017 IN THE SEDONA SYSTEM. UH, AND SOME OF THESE WE'VE ACTUALLY LOOKED AT WHEN, WHEN WE, WHEN WE DID THE TOUR. SO, UM, WE'VE HAD SEVEN WELL AND BOOSTER PUMP REPLACEMENTS, UH, PULLING THE EQUIPMENT OUT, PUTTING THE EQUIPMENT BACK, UH, FOR PUMP FAILURES, UH, LIGHTNING STRIKES, UH, MECHANICAL FAILURES, UM, EIGHT SERVICE AND METER REPLACEMENT PROJECTS WHERE WE ARE REPLACING WATER SERVICES. UM, THE HIGH DENSITY POLYETHYLENE PIPE WAS, IS FAILING. WE'RE REPLACING IT WITH COPPER SERVICES. AND THEN WE REPLACE THE WATER METERS ON OUR, ON OUR ROUTINE METER REPLACEMENT PROGRAM. SIX DIFFERENT TYPES OF MAIN REPLACEMENT. ONE WORTH NOTING IS THE WATER MAIN WE INSTALLED ON THE FOREST ROAD PROJECT, UM, THAT, THAT, THAT PROJECT'S COMPLETE AND, UM, IS PLACED IN SERVICE ONCE WE ARE ABLE TO, UM, TIE IT IN ON THE BOTTOM END. IT IS TIED IN, UP ON, ON THE TOP, UH, TWO TREATMENT PLANT PROJECTS. UH, ONE OF THOSE WAS THE RAINBOW SITE THAT WE VISITED OVER BY THE RELICS BUILDING. WE ADDED THOSE ADDITIONAL VESSELS IN THERE AND, AND, UM, AND MADE THAT PLANT A LOT MORE FUNCTIONAL AND HIGHER CAPACITY, UH, THREE TANK RELATED PROJECTS. AND ONE OF 'EM, THE COURSE THAT STANDS OUT AND IS, UM, VERY VISIBLE IN, IN THE RATE CASES, THE EAST SEDONA TANK PROJECT. AND WE'RE GETTING READY TO START TYING IN THE A PS OVER THERE AND WRAPPING THAT UP HERE DIRECTLY, HOPEFULLY APRIL. TECHNOLOGY RELATED WAS, UH, MOSTLY DEDICATED TO, UH, LEAK DETECTION EQUIPMENT, UH, THAT WE, THAT WE USE TO, UM, LOCATE WATER LEAKS UNDERGROUND THAT AREN'T VISIBLE AND LISTENING DEVICES THAT WE USE TO LISTEN THROUGH THE SYSTEM TO LOCATE LEAKS. AND THEN, UH, RELOCATIONS TO ROADWAY AND DRAINAGE CONSTRUCTION. UM, SOME OF THE, UH, [03:05:02] PROJECTS RELATED TO THE PATHWAYS AND SO FORTH THAT COME ALONG EVERY NOW AND THEN AND, AND, UM, THAT HAVE TO BE DONE LAST MINUTE TO, UM, MOVE THE WATER MAIN OUT OF THE WAY, LOWER IT OR RAISE IT OR REPLACE IT TO, UH, ACCOMMODATE, UH, PROJECTS THAT COME, COME DOWN THE PIKE. JOHN, WHERE DOES, UH, UPTOWN, UH, COME IN WITH THE, YOU KNOW, TIMEFRAME AS FAR AS A REPLACEMENT OF SOME, UH, OF THE QUESTIONABLE MEANS? I HAVE AN APPROVAL TO CONSTRUCT FROM A DEQ FOR THE WATER MAIN DOWN APACHE TRAIL LEADING TO THE TAIL END OF JORDAN PARK, DOWN NAVA HOPI TO THE BOOSTERS, TO THE BOOSTER NAVA HOPI BOOSTER STATION. AND, UM, UP TO THAT FIRE HYDRANT ON THE CORNER HEADED INTO OLA HILLS, UM, WHICH MEANS THAT WE WILL BE GOING OUT TO BID SHORTLY TO, UM, BEGIN CONSTRUCTION ON THAT PROJECT, HOPEFULLY HERE IN THE SPRING. UM, THIS COMING SPRING. YES, THAT'S THAT LOOK, LOOKING AT THE SCHEDULE, UM, YOU KNOW, WHAT CONTRACTORS AVAILABILITY MATERIALS, YOU KNOW, THERE'S THINGS THAT COME INTO PLAY AND THE NAVAJO HOPI BOOSTER STATION, I, WE HAVE THE APPROVAL TO CONSTRUCT ON THAT ONE. I SHOULD SAY THE, THE FIRST PROJECT WE HAVE THE SI THE FIRE DEPARTMENT SIGNED OFF ON THE FIRE HARDWARE FLOWS AND WE WILL BE RECEIVING THAT APPROVAL. WE HAVE THE APPROVAL FOR THE BOOSTER STATION THAT'S GOING TO BE LOCATED AT THE BOTTOM END OF THAT PROJECT TO, TO BRING WATER INTO THAT UPTOWN AREA. AND THE BOOSTER STATION PROJECT IS IN DESIGN RIGHT NOW THROUGH A CONSULTING FIRM TO SEE WHAT IMPROVEMENTS ARE GONNA BE DONE TO THE JORDAN PARK BOOSTER STATION. THAT WILL COME ON THE TAIL END OF THE MAIN REPLACEMENT. AND THAT, THAT'S DUE TO START CONSTRUCTION PROBABLY TOWARDS THE END OF THE YEAR, IF NOT THE BEGINNING OF 26, ALONG WITH THE GENERATOR CONNECTION. WOULD IT BE A GENERATOR CONNECTION? HARDWIRED A, A HARD WIRE GENERATOR CON? YEAH, THERE, THERE IS ONE THERE NOW, BUT THE GENERATOR WILL STAY, IT PROBABLY REMAIN THE SAME. THERE'S NOT A GEN, A STANDALONE GENERATOR IN THAT I KNOW OF IN THAT PROJECT. OKAY. OKAY. UH, PETE AND THE VICE MAYOR. THANKS, MAYOR. AND THOSE, THOSE PROJECTS YOU JUST TALKED ABOUT, THAT WE ASKED ABOUT, THOSE AREN'T IN THE RATE INCREASE BECAUSE THOSE AREN'T NO LOOK FORWARD. SO THOSE WILL BE IN SOME FUTURE RATE INCREASE. UH, JUST TWO QUESTIONS I HAVE FOR YOU. ONE, WHEN I'M LOOKING AT YOUR PUBLIC NOTICE, I SEE YOUR FIVE CUSTOMER CLASS CLASSIFICATIONS AND FOR INDUSTRIAL YOU'VE GOT NO PROPOSED INCREASE. COULD YOU TELL ME ABOUT THAT? I OH, YOU WANT THAT? GO AHEAD. ME TO, OH, GO AHEAD. THAT'S, THANK YOU. THANK YOU. UM, MR. COUNCILOR, THAT'S A GREAT QUESTION BECAUSE THAT'S ONE OF THE FREQUENT QUESTIONS WE GOT FROM OUR CUSTOMERS AS WELL. SO THE REASON WHY IT SHOWS 0%, BECAUSE, UM, WHEN THEY PUT THOSE NOTICES, AS I SAID, THEY HAVE A TEMPLATE, THE COMMISSION, SO THOSE NOTICES WERE NOT REALLY WRITTEN BY US. IT WAS ACTUALLY WRITTEN BY THE, AT ADMINISTRATIVE LAW JUDGE. SO, UM, IN, IN THE NORTHERN GROUP, CURRENTLY WE HAVE ZERO INDUSTRIAL CUSTOMERS, SO THAT'S WHY IT WAS PUT AS ZERO BECAUSE EVEN THOUGH WE'RE CHANGING THE RATES FOR INDUSTRIAL CUSTOMERS, BUT SINCE WE DON'T HAVE ANY CUSTOMER HERE, THE BILLING PACK IS ZERO ACTUALLY. SO YOU ARE CHANGING THE RATES FOR INDUSTRIAL. IF WE WERE, HAVE, WE HAD SOMEONE TO COME INTO TOWN NEXT YEAR WITH AN IN INDUSTRIAL PROJECT, THEY'RE NOT GETTING IN ON SOME ARTIFICIAL THE LOW RATES. 'CAUSE WE DIDN'T INCREASE THE, NO. YEAH, THE COMMISSIONER WILL MAKE SURE THE CUS UH, EACH CUSTOMER CLASS WERE ADDRESSING THE RAY CASE. OKAY. THANK YOU. AND THEN THE SECOND QUESTION, I HOPE THE MAYOR DOESN'T CALL ME OUT AND GET IN TOO DETAILED, BUT JOHN, I'M JUST CURIOUS. IT'S A CURIOUS QUESTION. SINCE THE TOUR WE ALL HAD THAT YOU GAVE US ACROSS THE STREET, HERE'S THE BULK WATER DISPENSING STATION. WHAT CLASS IS THAT AND HOW MUCH IS THEIR RATES GONNA GO UP? THE WATER SALESMAN? THAT WAS A ACTUALLY INTERESTING QUESTION. WATER SALESMAN, ARE THE RATES GONNA CHANGE ON THE WATER SALESMAN? NOT QUITE SURE WHAT THAT IS. WHERE THEY GO PUT A QUARTER IN AND OH, OKAY. SO, SORRY. I WAS THINKING ABOUT, BECAUSE WE, WE, UH, SO IN THE TARIFF, I, I'M THE RATES PERSON, SO I GO EVERYTHING BY THE TARIFF. SO ON THE TARIFF IT'S CALLED THE, THE, THE COIN MACHINE RATES. SO THAT WILL GO UP AS WELL. IS THAT IN THE OTHER WATER REVENUES SECTION? IS THAT THAT'S RIGHT. YEAH. OKAY. AND SO THAT'S ALSO, I'M ASSUMING I'VE OCCASIONALLY SEEN CONSTRUCTION TRUCKS PULLING RIGHT FROM FIRE HYDRANTS AS WELL. I'M ASSUMING THAT THAT'S A SIMILAR RATE STRUCTURE AS THAT'S A CONSTRUCTION CLASS CONSTRUCT. YEAH, IT'S A CONSTRUCTION CLASS. YEAH. I WONDER, JUST AN IDEA THAT I WANNA PUT OUT THERE THAT I KNOW THAT, YOU KNOW, WE ALSO SELL WATER, RECLAIMED WATER FROM OUR PLANT. AND I WOULD THINK IT'S IN ALL OF OUR INTERESTS TO SORTA START MOVING CON UH, UH, CONSTRUCTION WATER, USE WATER TO, UH, TO RECLAIM WATER RATHER THAN OUR DRINKING WATER IN TOWN. BECAUSE WE ALL HAVE A FUTURE CONCERN ABOUT DRINKING WATER. SO THAT JUST MIGHT BE SOMETHING THAT WE CAN ALL WORK TOGETHER ON THE NEXT RATE. THE STREET SWEEPERS USE IT. THEY, THEY GO OUT THERE, WHEN THEY FIRST STARTED SWEEPING THE STREETS, THEY WERE JUST TAKING IT OUT OF THE [03:10:01] HYDRANTS, BUT THEN, AND THEN THEY STARTED GOING OUT TO THE PLANT FOR THAT. YEP. IT'S A TOPIC. THANK YOU. ALRIGHT. FACE MAP. THIS IS QUICK. ON THESE NEW PROJECTS YOU TALKED ABOUT IN UPTOWN, DOES THAT INCLUDE EX REPLACING THE PIPES FOR LARGER DIAMETER PIPES? THAT'S WHAT THE PROJECT IS. YEAH. THE WHOLE PROJECT IS THAT IF THE OLD PIPE ISN'T REMOVED IN THE COURSE OF THE PROJECT, IT'LL REMAIN IN PLACE AND WE'LL INSTALL NEW, LARGER EIGHT INCH, SO EIGHT INCH THERE. THERE'S MOSTLY FOUR INCH WATER MAIN AND SMALLER IN THOSE NEIGHBORHOODS. AND, AND THE PIPES WILL BE INCREASED TO EIGHT INCHES SIZE. THANK YOU. OKAY. YOU CAN FINISH UP, UH, I THINK THAT'S ALL THE SLIDES WE HAVE THAT, I MEAN, FOR OUR PART OF THE PRESENTATION, BUT WE'RE HERE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE. OKAY. WE HAVE TO MOVE TO, UH, DISCUSSION AND GIVE DIRECTION TO THE STAFF. SO, OH, I THOUGHT YOU HAD A CARD JOIN. OKAY. UH, ANNETTE, WHAT KIND OF, UH, DIRECTION ARE YOU LOOKING FOR, WHETHER WE TAKE A POSITION OR NOT? WELL, UH, THANK YOU MAYOR. AT A PREVIOUS MEETING, UM, COUNSEL ASKED TO HAVE THIS ITEM PUT ON YOUR DISCUSSION AGENDA THIS MONTH BECAUSE OF THE JANUARY 29TH PUBLIC COMMENT, UM, DATE IN THE RAPE CASE. AND SO, UM, IT'S TOTALLY UP TO YOU IF YOU WOULD LIKE US TO PREPARE A LETTER ON YOUR BEHALF TO SUBMIT TO THE COMMISSION WITH THE COUNCIL'S THOUGHTS ABOUT THE RAPE CASE. STAFF'S HAPPY TO DO THAT. UM, IT'S NOT A REQUIREMENT BY ANY MEANS, BUT IF YOU WOULD LIKE TO SUBMIT SOMETHING, THEN THAT IS THE DIRECTION I'M LOOKING FOR IS THE TOPICS YOU WOULD WANT INCLUDED OR, YOU KNOW, ANY GENERAL COMMENT THAT THE CITY WOULD WANNA MAKE TOWARDS THE, FOR THE COMMISSION. KEEPING IT BRIEF. UH, A A QUICK QUESTION. MAYBE WE CAN'T ANSWER IT 'CAUSE I JUST THOUGHT OF IT TOO LATE. WE'RE A CUSTOMER, HOW MUCH DO WE PAY ARIZONA WATER? OH, THAT IS IN THE AGENDA BILL. SO OUR, UH, I BELIEVE WE ARE SPENDING SOMETHING AROUND $200,000 A YEAR AND IT WILL GO UP TO JUST SHY OF 300, I BELIEVE. YEP. THANK YOU. ANY COMMENT ON AS FAR AS THE DECISION AND DISCUSSION FOR, UH, A POSITION? OH, I HAVEN'T REALLY. I GOTTA RATE, CASE RATE INCREASES ARE, ARE DIFFICULT. I, I DON'T KNOW HOW TO THINK ABOUT THIS OTHER THAN OUR SEWER RATES ARE GONNA GO UP. OUR DIFF FEES ARE GOING UP. YOU KNOW, NOBODY LIKES TO TALK ABOUT THESE KIND OF NUMBERS. YOU HAVE TO THINK ABOUT THAT. THIS IS A FIVE YEAR KIND OF INCREASE. SO IT'S A, A BULK INCREASE. IT'S DIFFICULT TO THINK ABOUT. YOU KNOW, I ENCOURAGE OUR, OUR RESIDENTS WHO ARE CONCERNED, UH, IT, YOU KNOW, WATER IS LIFE AND IT'S, UH, 1.40 CENTS PER GALLON FOR A RESIDENTIAL CUSTOMER, THAT'S PRETTY CHEAP WATER. YOU CAN GO TO THE SAFEWAY AND BUY WATER FOR A LOT MORE THAN THAT. SO, UM, BUT, YOU KNOW, OUR RESIDENTS THAT ARE CONCERNED, I ENCOURAGE THEM TO WRITE TO THE CORPORATION COMMISSION. UH, I DON'T KNOW THAT YOU KNOW, IT, IT'S A DIFF IT'S A DIFFICULT THING. IT'S DIFFICULT TO ASK PEOPLE FOR MORE MONEY, BUT TO GET THE SERVICE THAT WE WANT, THEY COST WHAT IT DOES. THIS IS A REGULATED INDUSTRY, SO I THINK STAFF IS LOOKING FOR A DIRECTION. SO I'M NOT VERY INTERESTED IN TAKING A POSITION ON THE COUNCIL. OKAY. THAT'S WHAT I WAS LOOKING FOR. KATHY, IF COUNCIL DOES DECIDE TO GIVE DIRECTION TO, UM, WRITE A LETTER ON BEHALF, I WANT I, AGAIN, RAISE MY POINT ABOUT THE INEQUITY TO HUNDREDS, HUNDREDS OF OUR HOMEOWNERS HERE IN SEDONA, UH, BECAUSE OF THE TIER STRUCTURE. AND I WOULD, IF WE DO DIRECT FOR A LETTER TO GO, I'D LIKE TO MAKE SURE THAT THAT POINT IS ADDRESSED IN, IN A LETTER. UM, AGAIN, I DO ENCOURAGE INDIVIDUAL HOMES, UH, HOMEOWNERS, I CAN, UH, ENCOURAGE HOAS TO WRITE DIRECTLY TO THE ARIZONA CORPORATION COMMISSION, WHICH IS A SEPARATE GRANT BRANCH OF GOVERNMENT THAT MOST PEOPLE DON'T PAY ATTENTION TO. QUITE FRANKLY, THEY DON'T UNDERSTAND THAT IT'S AN ACTUAL FOURTH BRANCH OF GOVERNMENT IN ARIZONA. UM, AND I DO THINK THAT PEOPLE SHOULD WRITE THAT DIRECTLY. BUT IF WE DO DO SOMETHING, I WOULD LIKE THE INEQUITY THAT I RAISED TO BE ADDRESSED. THE QUESTION BEFORE US RIGHT NOW IS, HOW DO YOU FEEL ABOUT MOVING FORWARD? TAKE A NEUTRAL POSITION, A SUPPORTIVE POSITION? I THINK SINCE WE HAVE, AS I SAID, HUNDREDS OF HOMEOWNERS THAT ARE BEING, UM, THAT ARE INE EQUITABLY ADDRESSED IN THE APPLICATION PROCESS, THAT IT WOULD BEHOOVE US TO POINT THAT OUT TO THE ARIZONA CORPORATION COMMISSION WHEN THEY'RE DOING THAT. SO I WOULD SUPPORT WRITING A LETTER THAT INCLUDES THAT POINT. I ANSWERED YOUR QUESTION. OKAY. VICE MAYOR KURT, WE HAD A CONVERSATION [03:15:01] ABOUT THIS THE OTHER DAY AND I THOUGHT YOU HAD A, SOME LANGUAGE THAT APPEALED TO ME, IF I RECALL CORRECTLY. UM, I'M TRYING TO REMEMBER THE, I I THINK IT WAS JUST LANGUAGE THAT IF COUNSEL WANTED TO OPINE ON THIS, THE LETTER, YOU COULD JUST, UM, DELEGATE THAT TO, TO THE CITY MANAGER DRAFT. BUT IT'D BE THAT THE RATES ARE NOT INCREASED, UM, UH, MORE THAN NECESSARY OR, UH, YOU SAID THE LOWEST OR LOWEST REASONABLE. YEAH. COST POSSIBLE. YEAH. ANY LANGUAGE ALONG THAT LINE. UM, YEAH, I MEAN, THAT'S ONE OPTION. IF COUNSEL WANTED TO WEIGH IN ON THIS OR TAKE A NEUTRAL POSITION OR NO POSITION, IT'S AN OPTION AS WELL. OKAY, MELISSA? SO I THINK THIS IS, UH, THIS IS ACTUALLY REALLY A TRICKY POSITION TO BE IN. IT IS, UM, TOMORROW WE'RE GONNA HAVE A CONVERSATION AROUND OUR, OUR EFFLUENT AND RECLAIMED WATER. AND YOU KNOW, WHAT WE'RE GOING TO DO POTENTIALLY AS A CITY TO REDUCE OUR RELIANCE ON USING DRINKABLE OR POTABLE WATER, UM, FOR NON POTABLE INSTANCES. UM, AND IF IT JUST FEELS, UM, IF YOU CAN TAKE NEUTRAL LANGUAGE SUCH AS, UH, WHAT THE CITY ATTORNEY JUST MENTIONED. 'CAUSE ALL YOU'RE REALLY DOING IS SAYING, HEY, DON'T RAISE IT ANY HIGHER THAN YOU NEED TO RAISE IT. BUT I'M, I'M GOING TO ASSUME THAT THEY'RE GOING TO SAY IS THAT, IS THIS IS THE RATE YOU NEED AND THEY'RE GONNA SAY, YES, THIS IS THE RATE I NEED. THEY'RE GONNA SAY, OKAY, THEN THAT'S THE LOWEST AMOUNT. I MEAN, IT'S JUST, WELL, THAT'S REALLY HOW IT WORKS THOUGH. OH, OH, I, I UNDERSTAND. I'M JUST, I'M, I'M JUST SAYING THAT, THAT YOU'RE SENDING A LETTER THAT SAYS DO YOUR JOB. UM, I THINK THAT KATHY'S POINT, I UNDERSTAND THE TIERED, UH, ISSUE, BUT SHOULDN'T THOSE HOAS BE SHOWING UP, UM, AT THE, AT THE PUBLIC HEARINGS, MAYBE BOTH OF THEM AND SAYING, HEY, THERE'S A PROBLEM HERE. NOW THAT MAY NOT HAVE ANYTHING TO DO ULTIMATELY WITH THE RATE INCREASE THAT THEY GET, BUT IT MAY CHANGE THEIR POLICY AROUND HOW THEY THEY DEAL WITH IT. IS THAT REALLY A RATE INCREASE ISSUE OR IS THAT REALLY A POLICY ISSUE THAT THE COMPANY ITSELF HAS? AND WE'VE JUST DECLARED TO THEM THAT WE THINK THAT THERE'S A POLICY ISSUE THAT THEY SHOULD GO AND REVIEW. SO, UM, ALL OF THAT IS TO SAY, UM, I, I DON'T THINK THERE'S ANYTHING WE AS A CITY, UM, SHOULD CHIME IN ON. UM, WE'RE PROBABLY NOT HAPPY, UM, AS A CITY TO BE PAYING THE ADDITIONAL AMOUNT, BUT LIKE EVERYONE ELSE, WE'RE GONNA HAVE TO FIGURE OUT HOW WE'RE GOING TO DEAL WITH THAT. AND I THINK THAT, UM, I THINK THAT EVERY HOMEOWNER WHO IS CONCERNED SHOULD BE WRITING A LETTER OR SHOWING UP OR WHATEVER THE APPROPRIATE ACTION IS TO THE PUBLIC HEARING OR BOTH OF THE PUBLIC HEARINGS AS THEY CAN. UM, AND CERTAINLY THE HOA SHOULD BE DOING THAT AS WELL. UM, SO I DON'T THINK THERE'S ANYTHING THAT WE NEED TO DO AS A COUNCIL TO DIRECT THE CITY TO DO. BRIAN. THANK YOU, MAYOR. I THINK AFTER ME COMING EDUCATED BETTER ON THIS ISSUE, UM, I, I DON'T SEE WHERE OUR ADVOCACY ACTUALLY WILL RESULT IN ANY PARTICULAR OUTCOME. I MEAN, WE WANT FOR OUR RESIDENTS TO NOT HAVE TO SPEND MORE MONEY, BUT THE STRUCTURE OF HOW THIS ALL WORKS, UH, PRETTY MUCH ASSURES THAT THERE WILL BE A RATE INCREASE. I DON'T THINK THERE'S ANY DOUBT ABOUT IT. SO FOR THAT REASON, I GUESS I WOULD SAY I'M, YOU KNOW, NEUTRAL OR OF NOT PARTICULARLY TAKING A POSITION ON THIS BECAUSE I DON'T SEE WHERE WE'RE ULTIMATELY GOING TO AFFECT WHAT THE OUTCOME IS IN THIS PARTICULAR CASE. THANK YOU. I TEND TO AGREE AS WELL. I'D RATHER TAKE A NEUTRAL POSITION. UH, I APPRECIATE, UM, MELISSA'S POINT OF VIEW WHEN IT COMES TO ELLA'S POINT, THERE IS A, AN ISSUE, IT'S A, IT'S THEIR POLICY. IT'S NOT PART OF THE RAY CASE, UH, FOR THAT'S NOT THIS. AND THAT'S WHY WE'RE SAYING IT'S GETTING TOO DEEP INTO THE WEEDS. UH, BUT I THINK IT'S AN ISSUE THAT THOSE COMMUNITIES, THOSE HOAS, THEY SHOULD BE STEPPING UP AND DOING IT, WRITING A LETTER TO, TO JOHN SNICKERS OR THE BOARD OR WHOEVER THAT, YOU KNOW, HAVE THEY BEEN REMAINING NUMB AND JUST COMPLAINING TO THEMSELVES OR HAVE THEY BEEN GETTING OUT? I DON'T KNOW. I, I'M AWARE THAT THERE ARE SEVERAL HOAS THAT ARE SUBMITTING TESTIMONY OF WRITTEN COMMENTARY TO THE CORPORATION COMMISSION. THAT'S FINE FOR THEM TO DO. I, UH, I'M GOING TO HOLD MY POSITION OF BEING NEUTRAL ON THIS, SO, AND THAT YOU HAVE ENOUGH? YES, SIR. THANK YOU. OKAY. [03:20:01] OKAY. ITEM [8.f. AB 3169 Discussion/possible action regarding approval of a Resolution vacating of unused right-of-way in front of 125 and 145 Manzanita Lane, zoned RS-18.] F AB 31 69. THANK YOU. THANKS AGAIN GUYS. THANK YOU. I'M SORRY JOHN. THANK YOU VERY MUCH. CAN YOU GET BACK UP HERE? UH OH. ANOTHER OCD COUNCIL MEMBER. OH, JUST WHAT WE NEEDED, DEREK. AM I STILL A COUNSELOR? OKAY. UH, UH, DISCUSSION, POSSIBLE ACTION REGARDING APPROVAL OF RESOLUTION VACATING, UNUSED RIGHT OF WAY IN FRONT OF 1 2 5 AND 1 4 5. MANZANITA LANE ZONE RS 18. OH, OKAY. NON-LEGAL IS UP. YOU DIDN'T HAVE . OKAY. GOOD EVENING, MAYOR, VICE MAYOR COUNSEL. UM, I BELIEVE YOU ALL READ THE AGENDA, BILL. IT'S PRETTY STRAIGHT AND FORWARD. UH, THIS IS, UM, LEFT OVER, UH, RIGHT OF WAY TO ABANDON. IT WAS APPROACHED IN 2021 ORIGINALLY BY KAREN OSBORNE, WHO CAME UP WITH THE, A DETAILED LETTER RESPONSE ABOUT A 20 FOOT ACCESS, THE DRIVEWAY OF THE CRITERIA. AND, UH, SINCE THEN, THESE, THESE TWO BUILDERS CONTRACTORS ARE LOOKING AT, UM, PURCHASING THIS ABANDONED RIGHT OF WAY IN ORDER FOR THEM MAKE THROUGH THESE TWO LOTS DEVELOPABLE. UM, WE HAD THE APPRAISAL THAT HAD FIVE DIFFERENT APPRAISALS THAT LOOKED AT IT FOR, UH, THE APPROPRIATE, UM, COST PER SQUARE FOOT. UM, I THINK WE FOLLOWED ALL OF THE CRITERIA AND WE'RE MOVING THIS FORWARD FOR YOUR APPROVAL. OKAY, THERE, PETE, KURT, JUST, I'M GONNA PUT ON MY, UH, TRAILS COORDINATOR ADVOCACY HAT AND ASK YOU, DO YOU KNOW, DID YOU INSPECT THE PROPERTY? UH, LET ME JUST PREFACE THIS BY SAYING, SELLING OUR RIGHT OF WAY IS ONE THING. MAYBE WE COULD TRADE IT FOR SOMETHING OF VALUE AS WELL. UH, AND I'M CURIOUS ABOUT WHETHER, DID, DO YOU INSPECT THE PROPERTY? IS THERE SOCIAL TRAILS THAT GO DOWN THE MANZANITA TRAIL THAT'S DOWN BELOW THIS STREET? I THINK THEY'RE ALL SOCIAL TRAILS. THAT'S ALL PRIVATE PROPERTY ON THE BACKSIDE OF THE LOT. IF THERE ARE, THERE, THERE ARE SOCIAL TRAILS. THERE SHOULDN'T BE. IT'S PRO, UH, I THOUGHT THAT IT WAS FOREST ON THE BACKSIDE OF THESE PROPERTIES. NO, THE THE WAVE YOU LOOK AT IT, IT, THE PROPERTY IS THE LONG AND RECTANGULAR RIGHT? MOST OF THE LOT IS ACTUALLY ON THE BACK SLOPE FACE. THAT WAS WHY THEY WANT TO PURCHASE THIS, UH, ABANDONED RIGHT OF WAY SO THEY CAN STILL MEET THE 20 FOOT DRIVEWAY AND MOVE IT TOWARDS THE STREET. PERHAPS YOU MISUNDERSTAND WHAT I'M SAYING? YEAH. IS THAT WE COULD TRADE OUR RIGHT OF WAY IN THE FRONT FOR, UH, A RIGHT OF WAY THAT GOES DOWN TO THE TRAIL SO WE COULD FACILITATE TRAIL ACCESS IN TOWN. DID YOU THINK ABOUT THAT? IS THERE NO, SIR. IS THERE A SOCIAL TRAIL THAT EXISTS FROM THE STREET DOWN TO THE MANZANITA TRAIL THAT'S DOWN BELOW IT? DO YOU KNOW? NO, I DIDN'T GET ACCESS. I IT'S PRIVATE PROPERTY. I, I DIDN'T TAKE THAT INITIATIVE. RIGHT. SO, I MEAN, YOU KNOW, OVER IN MY NEIGHBORHOOD WE ACTUALLY DO HAVE A CITY OWNED RIGHT OF WAY THAT GOES FROM THE STREET INTO THE, UH, THE TRAILHEAD. THAT'S, THAT'S OVER BY ME. NO, IT'S OVER HERE OFF OF A COFFEE POT. AND IT GOES TO THE LITTLE ELF TRAILHEAD OR WHATEVER WE CALL THAT, WHICH IS A GREAT IDEA, WHICH WE SHOULD BE DOING MORE THINKING ABOUT RATHER THAN JUST SELLING. MAYBE THERE'S SOME BENEFIT THAT WE COULD GET, WHICH IS HAD WE HAD A TRAIL COORDINATOR, MAYBE, YOU KNOW, WE WOULD'VE THOUGHT A LITTLE BIT ABOUT THIS. NOW I DID DRIVE BY AND I TRIED TO LOOK AND IT DOESN'T APPEAR TO ME THAT THERE'S ANY SOCIAL TRAILS. OKAY? AND I ASKED A COUPLE PEOPLE IN THE NEIGHBORHOOD AND THEY DO SAY THEY ACTUALLY WALK DOWN TO THE MANZANIA TRAILHEAD, WHICH ISN'T THAT FAR AWAY, BUT IT'S AN IDEA THAT WE SHOULD BE THINKING ABOUT IS TO REALLY HELP OUR RESIDENTS GET THAT TRAIL ACCESS. AND A TRAILS COORDINATOR WOULD'VE THOUGHT OF THAT BEFORE THIS MEETINGS. WELL NOW I THINK OF IT NOW. SO IT'S DULY NOTED. UM, AND THEN ALSO SHOULD THE COUNCIL SHOULD KNOW AS PART OF THE DIRECTIVES FROM ANDY, IS THAT WHEN WE'RE LOOKING AT PROJECTS AND WE SEE UNUSED LEFTOVER RIGHT AWAY, UH, THAT WE'RE GONNA TRY TO CLEAN UP AS MANY OF THOSE ARE POSSIBLE. IN FACT, I'LL BE COMING BACK TO COUNCIL WHERE I'VE BECOME EXPOSED TO THOSE TO WHERE WE WANT TO ALLOW THE ADJACENT LANDOWNERS TO BUY REALLY UNDEVELOPABLE, UNUSED, UM, RIGHT OF WAY. THAT'S JUST PROBLEMATIC TO THE CITY. THANK YOU. OKAY. ANY OTHER QUESTIONS? ANY OTHER COMMENTS? WOW. OKAY. DO WE HAVE A MOTION? I CAN MAKE [03:25:01] A MOTION PLEASE. I MOVE TO APPROVE RESOLUTION 2025 DASH ZERO TWO, SORRY. 0 2 0 2. IT'S EARLY IN THE YEAR, UH, DECLARING THE SUBJECT PORTION OF ROADWAY NOT NECESSARY FOR PUBLIC USE AS A ROADWAY. AND RESOLVING THAT THE SUBJECT PORTION OF ROADWAY BE VACATED TO 1 25 AND 1 45 MANZANITA LANE UPON RECEIPT OF PAYMENT FROM THE OWNERS IN THE AMOUNT OF $16,269. SECOND. OKAY, WE HAVE A SECOND BY THE VICE MAYOR. UH, ANY FURTHER DISCUSSION? ALL IN FAVOR SAY AYE. AYE. AND HE OPPOSED OR UNANIMOUS. OKAY. THANK YOU. ALRIGHT, BREAK. NO, WE HAVE, UH, ITEM [8.g. AB 3121 Discussion/possible action regarding approval of draft Council Priorities.] G AB 31 21. DISCUSSION, POSSIBLE ACTION REGARDING APPROVAL OF A DRAFT, UH, COUNCIL PRIORITIES, UH, YOU WANT TO DISCUSS THIS AND, UH, AS FAR AS A POSSIBILITY OF, I'M HAPPY TO INTRODUCE THE ITEM AND GET YOUR FEEDBACK. OKAY. UM, SO COUNSEL, THIS IS A SUMMARY OF, UM, WHAT WE CAPTURED FROM YOUR RETREAT. UM, AS YOU KNOW, AT THE END OF THE RETREAT, WE DID NOT HAVE TIME TO DO A FULL WRAP UP AND FINALIZATION, UM, OR REFINEMENT OF THE LIST. SO I WANTED TO PROVIDE IT TO YOU TO TONIGHT SO THAT YOU HAD A CHANCE TO SEE IT. AND, UM, THE NEW FORMAT OF TYING IT TO THE COMMUNITY PLAN GOALS WITH THE INTENTION THAT EITHER TONIGHT OR IF IT'S TOO LATE TONIGHT AT ANOTHER MEETING, YOU WOULD HAVE AN OPPORTUNITY TO DISCUSS AND FINALIZE IT AND, YOU KNOW, UH, REFINE IT DOWN OR CLARIFY ANY OF THE THINGS IN HERE THAT I CAPTURED. SO THIS IS LIKE THE FIRST DRAFT OF THE SUMMARY. MAYBE JUMP, UH, FROM THE RETREAT. VICE MAYOR. UH, I DUNNO ABOUT YOU ALL, BUT THIS ISN'T A SUBJECT. I FEEL LIKE WE'RE READY TO DISCUSS TONIGHT AT 8:20 PM 'CAUSE I THINK IT TAKES SOME WORKING THROUGH MM-HMM . SO I WOULD PROPOSE WE HAVE A, UH, OPEN SLOT ON FEBRUARY 12TH WHERE WE HAVE NO WORK SESSION PLANNED, RIGHT. THAT WE MOVE THIS ITEM. I'M SEEING A LOT OF HEADS SHAKING. YES. OKAY. AND, UM, MADAME FEIS, MAYOR, IF I MIGHT ASK, COULD WE ALSO AT THE SAME WORK SESSION, OR SHOULD I DO THIS UNDER THE UPCOMING AGENDA ITEMS? I DON'T KNOW ALL THE TECHNICALITIES HERE, BUT BECAUSE UNDER COUNCIL PRIORITIES, THERE WAS ALSO A COMPANION REQUEST ABOUT REVIEWING COUNCIL PROCEDURES. WE COULD SCHEDULE, THEY WOULD SCHEDULE THEM TOGETHER ON THE SAME YES. WORK WELL TOGETHER. MM-HMM . UH, PETE, THANK YOU MAYOR. UH, I JUST WOULD SHARE WITH MY COLLEAGUES THAT, YOU KNOW, I, AS I LOOKED AT THIS DOCUMENT IN PREP FOR THIS MEETING AND THOUGHT ABOUT, YOU KNOW, THE, THE OLD PHRASE ABOUT, YOU KNOW, A HUNDRED PRIORITIES MEAN YOU HAVE NONE. AND SO HOW DO YOU PRIORITIZE THEM? AND I AGREE WITH YOU THAT I'M NOT READY TO DO THIS TONIGHT, EVEN THOUGH I TOOK, YOU KNOW, A STAB AT IT BEFORE THIS MEETING. BUT THE WAY I ENDED UP THINKING ABOUT IT WAS I CATEGORIZE THEM IN THREE A, B, C, A, B, AND GET IT DONE. B BEING SLIP ONLY FOR THE GET IT DONE ONES. AND C IS, IT'S IMPORTANT, IT'S A PRIORITY, BUT WE'LL GET TO IT WHEN STAFFING IS ALLOWED. SO THAT'S THE, THAT'S, YOU KNOW, THE FRAMEWORK THAT I THOUGHT ABOUT IT THAT MIGHT BE USEFUL FOR US. AS WE DO TAKE ON THIS, I KIND OF VIEWED THESE AS MINUTES OF OUR MEETING AS OPPOSED TO WHAT OUR ACTUAL PRIORITIES. KATHY. YEAH. THE ONLY OTHER THING IS IF WE ARE GONNA REVIEW IT ON THE 12TH, WHICH I'M ALL IN FAVOR OF, UM, THAT SOME OF THESE PRIORITY MEANS, YOU KNOW, I THINK IT'S ESTABLISHING NEW PRIORITIES FOR THE COUNCIL. SOME OF THESE ARE ONGOING, THEY'VE ALREADY BEEN ESTABLISHED. SO I'D LIKE TO SEE IT BROKEN DOWN INTO TWO DIFFERENT LISTS. ONE IS THE NEW THINGS THAT NEED TO BE CONSIDERED TO ESTABLISH THIS PRIORITIES. AND THE OTHER IS THESE HAVE ALREADY BEEN ESTABLISHED. THESE ARE, YOU KNOW, UNDER, UM, THEY'RE ALREADY HAPPENING. SO I JUST WOULD LIKE TO SEE A BREAKDOWN THAT WAY. ALRIGHT. WELL ANNETTE HAS YOUR COMMENTS, RIGHT? ANY OTHER, I THINK BRIAN, BRIAN, OH YES, BRIAN, I'M SORRY. TO COUNSELOR ELLA'S POINT, IS THERE, DO WE EVER GET TO A POINT WHERE WE SAY, OKAY, THE, SOME OF THIS NEW STUFF NOW IS GONNA SUPERSEDE OLD STUFF. LIKE DO THEY NEED TO, DO WE DO WE NEED TO KINDA LOOK AT WHERE WE SAY, WOW, YOU KNOW WHAT WE THOUGHT LAST YEAR WE THOUGHT THIS WAS SUPER HIGH, BUT NOW THIS NEW OPPORTUNITY CAME ALONG. SO YEAH, WE STILL WANT YOU TO GET IT DONE, BUT NOW WE'RE GONNA PUSH IT DOWN. SO I THINK THAT'S PART OF THE DISCUSSION [03:30:01] ON THE, ON THE 12TH WHEN IT'S THE BIGGER DISCUSSION. 'CAUSE I THINK THAT'S EXACTLY WHAT WILL PROLONG THE DISCUSSION. . OKAY. I'M GOOD. ANNETTE, DO YOU FORESEE THIS TO BE A TWO HOUR, THREE HOUR ENDLESS SESSION? ENDLESS OR ENDLESS? ENDLESS. THREE HOURS? I DON'T, WELL, EASILY THREE. YES. I THINK IT'LL, IT COULD BE DEPENDING ON HOW MUCH, UH, TIME YOU WANT TO DIVE BACK INTO ANY PARTICULAR TOPIC. OH, THAT COULD BE DAYS. UM, SO I JUST MADE A NOTE TO MYSELF THAT, UM, TO CREATE SOME KIND OF MATRIX OR FRAMEWORK THAT'LL HELP YOU, UM, CREATE AN ACTUAL PRIORITIZATION, YOU KNOW, SOMEHOW. UM, SO WE'LL COME UP WITH THE TOOL TO HELP STRUCTURE IT, THE DISCUSSION. SO IS THIS A START AT TWO INSTEAD OF THREE KIND OF THING? I ASSUME WE'RE TALKING A WEDNESDAY, RIGHT? YEAH, WEDNESDAY IT'LL BE THREE, BUT I DON'T WANNA GO PAST THREE. OR DO WE NEED TO START EARLIER? THAT'S A BETTER IDEA. COULD WE START AT TWO? WHATEVER THE COUNCIL WOULD LIKE TO DO IS FINE WITH US. OKAY. WE'LL, WE'LL START AT TWO. LET'S MAKE WHAT? OH, WELL, CAN I JUMP IN WHILE EVERYONE'S CHECKING THEIR YEAH. CALENDARS BECAUSE I CAN END UP HAVING MEETINGS BEFOREHAND. SO, SO I, I ALSO WANT US TO BE CAREFUL, UM, THAT WE'RE NOT CONFLATING PROJECTS WITH PRIORITIES. EXACTLY. SO FOR INSTANCE, WHEN I LOOK AT THIS, THERE IS A PRIORITY AROUND CITY BEING INVOLVED IN TAKING STANCES AT THE ARIZONA LEGISLATIVE, YOU KNOW, LEVEL. HOWEVER YOU WANNA WORD THAT PRIORITY UNDER WHICH YOU WOULD SAY, WELL, PROJECTS ARE, YOU KNOW, WORK TO PASS A BILL TO RETURN SOME LOCAL CONTROL, YOU KNOW, WORK TO PREVENT THOSE. BUT THOSE ARE WORK ITEMS THAT WE'RE HANDING OFF TO STAFF TO SAY, YOU GO AHEAD AND DO THESE. THE PRIORITY IS, 'CAUSE OTHER THINGS COULD COME ALONG DURING THE YEAR, AND SOME OF THESE MIGHT BE SUPERSEDED AND, AND WHATEVER, BUT THEY'RE AT THE PROJECT LEVEL. AND, AND I KNOW THAT SOME OF US TALKED ABOUT THIS LAST YEAR AT THE PRIORITY SETTING, BUT IT'D BE NICE IF, IF, YOU KNOW, UH, WHEN YOU MAKE A PASS THROUGH THIS STAFF THAT YOU SAY, WHAT, WHAT IS THE PRIORITY THAT WE WERE TALKING ABOUT VERSUS WHAT ARE THE WORK ITEMS THAT WE, YOU'RE GONNA BE TAKING ON AS STAFF? SO I JUST WANTED TO THROW THAT OUT AND GIMME THE, WAS THAT THE 12TH? YES. YES. OKAY. I'M, I'M WIDE OPEN. I COULD DO IT AT TWO O'CLOCK. IS EVERYBODY ELSE DEREK, YOU'RE LIKE THE REAL WORKING MAN HERE. SO CAN YOU DO THAT? HEY, OKAY. OH NO, THAT'S RIGHT. YOU ARE, THAT'S, I FORGET, I ALWAYS FORGET ABOUT I GOT THAT. IT DOESN'T HURT TO HAVE ONE AROUND . OKAY. UH, SO THAT'S, THAT'LL BE A TWO O'CLOCK START ON. [8.h. AB 3066 Discussion/possible action regarding future meeting/agenda items.] OKAY. ITEM H, AB 30 66, DISCUSSION, POSSIBLE ACTION REGARDING FUTURE MEETING AND AGENDA ITEMS. DO WE HAVE ANYTHING BRIAN? YEAH. SO, UH, PREVIOUSLY I HAD, UH, ASKED FOR, AND COUNSEL AGREED TO HAVE DISCUSSION ABOUT, YOU KNOW, WHAT DO WE WANT TO HAVE HAPPEN WITH THE FOREST SERVICE? AND THEN WE SORT OF CHANGE THE ORDER OF, LET'S HAVE ALEX COME IN, TELL US WHAT HIS PRIORITIES ARE. BUT THE ORIGINAL INTENT OF WHAT I PUT FORWARD TO US WAS US ACTUALLY PRESENTING TO ALEX, HEY, THIS IS WHAT'S REALLY IMPORTANT TO US FOR YOU GUYS TO WORK ON. UM, AND BECAUSE I DON'T THINK OUR PRIORITIES ARE A HUNDRED PERCENT IN ALIGNMENT, SO THERE WOULD STILL BE THAT FOLLOW UP PIECE, AND I'VE NOT REALLY HAD A CHANCE TO DIG DEEP ON IT, BUT THERE IS A NEW LAW THAT WAS PASSED IN CONGRESS AFFECTING THE FOREST SERVICE THAT AT FACE VALUE IMPLIES THAT THEY SHOULD BE ABLE, WILLING AND FUNDED TO DO SOME MORE THINGS FOR COMMUNITIES THAT ARE IMPACTED BY THE USE OF THE FOREST SERVICE. I'D LIKE TO UNDERSTAND THAT BETTER BECAUSE I DON'T UNDERSTAND HOW THAT LAW HAS ANY TEETH TO IT WHEN WE'RE GETTING THE LETTER FROM ALEX, FROM HIS BOSS AND BOSS'S BOSS OR WHOMEVER OF THERE'S NO MONEY FOR STAFF. RIGHT. OR AT LEAST NOT THE SEASONAL STAFF AND STUFF LIKE THAT. SO I'D, I'D LIKE TO UNDERSTAND WHAT THAT BILL REALLY COULD MEAN FOR US. AND THEN SECONDLY, FOR US STILL TO HAVE, INVITE ALEX TO COME BACK IN AND SAY, HEY, YOU KNOW WHAT, THIS IS WHAT THE CITY'S PRIORITIES ARE THAT WE'D LOVE TO BE WORKING WITH YOU ON. AND BECAUSE IF IF, IF IT, IF ONE OF THOSE THINGS IS A NEW ACCESS POINT FOR, UM, BACK OR BEYOND OR NOT, WELL, NOT BACK OR BEYOND, BUT TO CATHEDRAL. RIGHT. OKAY. THAT'S NOT ON ALEX'S LIST RIGHT NOW. CORRECT. AND IF WE THINK WE WANT THAT TO BE ON HIS LIST, THEN THAT DOES NEED TO BE PART OF A FUTURE CONVERSATION. OKAY. WELL WE CAN'T REALLY DISCUSS IT NOW, BUT, UM, SO THERE'S TWO THINGS YOU'RE SUGGESTING [03:35:01] BOTH WOULD BE VERY INTERESTING. I WOULD RATHER HAVE HEAR THE LEGAL ASPECTS ABOUT WHAT YOU'RE TALKING ABOUT, THE NEW CONGRESSIONAL, UH, LAW BEFORE WE MEET WITH ALEX. HOW WOULD WE GO ABOUT DOING THAT, KURT? WE NEED SOMEBODY FROM DC TO COME. AN ATTORNEY OR I MEAN . WELL, IT'S, I MEAN, STAFF CAN EVALUATE AND LOOK AT IT FIRST TO SEE IF IT, UH, HAS ANY EFFECT. AND THEN COUNSEL CAN ALSO HAVE THAT BROADER INITIAL DISCUSSION ON WHAT THEY MIGHT WANT TO PRESENT TO THE FOREST SERVICE, IF FAMILIAR. SO WE'LL JUST DO A PUBLIC MEETING TIME, UH, TO DISCUSS THAT FIRST. OKAY. THERE'S A SECOND TOPIC IS ALSO CONGRESSIONAL ACTION ABOUT HOUSING AT WORK, AT THEIR FOREST SERVICE WORK CAMPS, OF WHICH THERE IS ONE ON THE OTHER SIDE. I 17. SO THAT'S ANOTHER TOPIC THAT COULD BE TALKED ABOUT, RIGHT? BUT TRUE. OKAY. SO, UH, YOU WANT TO FIGURE OUT WHEN YOU'LL BE ABLE TO GET THAT INFORMATION BEFORE WE EVEN GIVE IT A DATE. YOU'LL GET BACK TO US ON WHEN YOU CAN GET THE INFORMATION. WHAT WE NEED FROM COUNSEL IS WHETHER THIS WILL BE A WORK SESSION OR A OH, I WOULD SAY A WORK SESSION. SOUNDS LIKE. SO WE'LL FIND AN AVAILABLE WORK SESSION ON OUR PRIORITIES. YEAH. IT'LL BE AF YEAH. OBVIOUSLY AFTER THAT ONE. SEE WHAT I, OKAY. UH, BUT THAT, THAT'S A REALLY GOOD POINT TO GET. WE MAY HAVE TO GET, UH, JUDY TO COME BACK AND MAYBE SHE COULD TALK ABOUT HOLLY. YEAH, RIGHT. OH, CORAL. OH, CORAL. SHE'S BACK IN ACTION NOW TOO, SO THAT WOULD BE GOOD. LOOKS LIKE IT'LL BE IN MARCH. MM-HMM . OKAY. WILL YOU BE BACK BY THEN? SO I, I HEARD, I HEARD THREE DIFFERENT THINGS, IS THAT CORRECT? MM-HMM . MM-HMM . SO THERE WAS ONE WAS THE LAWS. MM-HMM . THE, THE SECOND WAS WHAT DO WE WANT FROM THE FOREST SERVICE AS A CITY? AND THE THIRD WAS WHETHER OR NOT WE CAN GO FORWARD WITH THE WORK CAMPS AND HOUSING. BUT THAT SOUNDS LIKE IT'S A SEPARATE TOPIC. IS THAT, THAT'S JUST ANOTHER ONE OF THE LAWS, LIKE THAT'S PART OF THE FEDERAL LEGISLATION THEY WERE REFERRING TO, TO LEARN ABOUT, BUT TO LEARN ABOUT IT IS DIFFERENT THAN TO DISCUSS WHETHER OR NOT WE AS A CITY HAVE AN OPPORTUNITY TO TAKE ADVANTAGE OF THAT. OR IS THAT, SHOULD WE LEARN ABOUT IT FIRST? WELL, YES, BUT I SAID THERE'S THREE TOPICS. THE THIRD TOPIC WAS A, A DIFFERENT AGENDA ITEM I THINK, WHICH IS TO SAY, GIVEN WHAT WE UNDERSTAND ABOUT THE LAW, IS THERE ANYTHING WE AS A CITY WANT TO DO TO TAKE ADVANTAGE OF IT? OR WOULD YOU PUT THAT IN AS PART OF THE DISCUSSION OF THE LAW? I THINK WE CAN INCLUDE IT IN THAT DISCUSSION. IF IT'S A WORK SESSION, WE'LL HAVE ENOUGH TIME. I DON'T KNOW OKAY. WHERE IT WILL GO. UM, BUT WE CAN AT LEAST HAVE THE INITIAL DISCUSSION AND IZE IT FOR THAT. OKAY. THANK YOU. OKAY. UM, CLERK. HI, JOE? YES. OH, MAYOR AND COUNSEL. I JUST WANTED TO BRING UP THAT, UH, IN NOVEMBER, THE FIRST MEETING ON THE 11TH, THAT IS ACTUALLY THE VETERAN'S DAY HOLIDAY. AND THAT'S THE TUESDAY MEETING, A REGULAR MEETING YOU SAID? NOVEMBER. MM-HMM . MM-HMM . UHHUH. . NOVEMBER. OKAY. IT'S UPCOMING, BUT I WANTED YOU TO KNOW ABOUT IT NOW SO WE CAN PLAN WHAT TO DO A FUTURE AGENDA ITEM FOR THE FEE. WHETHER YOU WANNA VACATE THAT MEETING OR, OH, JUST HOLD IT ON WEDNESDAY. I DIDN'T UNDERSTAND WHAT YOU, OKAY. LET ME LOOK. NOVEMBER, WE WILL BE HAVING A WORK SESSION DAY OR, I MEAN, IT'S UP TO COUNCIL, I GUESS WHETHER OR NOT THE REGULAR MEETING WOULD BE ON THE WORK SESSION DAY. IT'S, YEAH. WOULD IT BE POSSIBLE JUST ASKING, DON'T BEAT ME UP TO MOVE THEM EACH ONE DOWN, PUT THE WORK SESSION ON, ON, EITHER NOT HAVE A WORK SESSION AND PUT ON THE 13TH AND HAVE THE REGULAR MEETING ON THE 12TH. I THINK THAT'S UP TO COUNCIL. RIGHT? WELL, I JUST WANT TO KNOW IF WE COULD DO IT FIRST. UH, AS FAR AS STAFF WISE, STAFFING, UH, YEAH. YEAH. STAFF. YEAH. WE SERVE AT YOUR PLEASURE. SO IF YOU WANT TO CHANGE OH, DON'T GIVE US THAT. YEAH. REALLY WIDE OPEN BECAUSE I'VE GOT A COUPLE OF GATES ON MORGAN ROAD I'D LIKE TO SEE BUILT. WELL, I MEAN IN TERMS OF YOUR MEETING SCHEDULE. YEAH, I, I WHATEVER YOU WANT TO SCHEDULE, BUT I STILL, THE COURTESY I WOULD RATHER ASK YOU. OKAY. SO WHY DON'T WE LOOK TO DO THAT, JOANNE? OKAY. IF WE HAVE A WORK SESSION, IT WOULD BE ON THE 13TH. IF NOT, THEN WE DON'T, BUT WE'LL MOVE THE REGULAR DAY TO THE 12TH. THANK YOU. IS THE CITY CLOSED ON VETERAN'S DAY? YES. OKAY. ALRIGHT. ANY OTHER FUTURE AGENDA ITEMS? OKAY, I, WE WILL SEE YOU TOMORROW. WE ARE AT THREE TOMORROW RIGHT NOW? YES SIR. YES. THREE. [10. ADJOURNMENT] OKAY. MEETING'S ADJOURNED. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.