* 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. [00:00:01] ALRIGHT. WE'LL CALL, [1. CALL TO ORDER/PLEDGE OF ALLEGIANCE/MOMENT OF SILENCE] UH, THE FOUR 30 MEETING TO ORDER. UH, 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 STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR, AND NOW A MOMENT OF SILENCE. NO, YOU WILL NOW. OKAY. THANK YOU. UH, MADAM CLERK [2. ROLL CALL/MOMENT OF ART] ROLL CALL PLEASE. MAYOR TABBLO. HERE, VICE MAYOR PLU. PRESENT. COUNCILOR DUNN. HERE. COUNCILOR LTZ. PRESENT. COUNCILOR FURMAN. HERE. COUNCILOR KINSELLA. PRESENT. COUNCILOR FA. HERE. THANK YOU. OKAY, NANCY, YOU'RE UP FOR A MOMENT OF ART FOR THE FIRST OF THE MONTH. THANK YOU. GOOD AFTERNOON, MAYOR, VICE MAYOR AND COUNSELORS. UH, BEFORE I START THE MOMENT OF ART, A QUICK ANNOUNCEMENT. THE FIRST ASSIGNMENT FOR OUR INAUGURAL POET LAUREATE GARY EVRY, WILL BE TOMORROW 11:00 AM AT THE VILLAS FOR THAT GROUNDBREAKING EVENT. SO HOPEFULLY YOU'LL ALL JOIN US AND SEE GARY, UM, AS WELL. SO FOR TODAY, I'M GOING TO INTRODUCE SKIP DOWN. UM, HE GRADUATED FROM THE EMERSON COLLEGE IN BOSTON IN 1967 WITH A DEGREE IN ENGLISH. HE WAS IMMEDIATELY DRAFTED AND SERVED AS A US AF INSTRUCTOR NAVIGATOR, FLYING AND REFUELING TANKERS AND THE GIANT LOCKHEED C FIVE, A CARGO PLANE INTERNATIONALLY. UPON BEING HONORABLY DISCHARGED, HE CLERKED FOR LOBBYISTS IN SACRAMENTO, CALIFORNIA. WHILE ATTENDING NIGHT LAW SCHOOL, HE LISTENED AND LEARNED THE LEGISLATIVE ADVOCACY PROCESS AND SOON THEREAFTER LAUNCHED HIS OWN LOBBYING FIRM, CAPITAL COMMUNICATIONS GROUP. THIS ORGANIZATION SERVED DOZENS OF NOT-FOR-PROFIT ORGANIZATIONS WITH A WIDE VARIETY OF INTERESTS. FOR 50 YEARS, HE CLOSED THE FIRM TWO YEARS AGO, TOURING WESTERN STATES AND DOZENS OF GALLERIES UNTIL HE LANDED IN SEDONA, THE ART MECCA, AS HE CALLS IT. HE IS NOW A PERMANENT SEDONA RESIDENT AND REALLY ENJOYS MEETING OUR NEIGHBORS. WHILE VOLUNTEERING AT THE SEDONA HERITAGE MUSEUM IN OUR COLLECTOR, SKIP QUICKLY SENSED THE SYMBIOSIS BETWEEN ARTISTS AND OUR COMMUNITY TO ENHANCE THAT CONNECTEDNESS. HE FORMED THE SEDONA ARTIST CONSORTIUM THIS YEAR, PRODUCING THE FIRST EVER SCULPTURE SYMPOSIUM, AN ONSTAGE EVENT AT MARY FISHER THEATER. RECEIVED WITH WIDE ACCLAIM. AND I JUST HAVE TO SAY, BECAUSE HE CAME TO ME TO ASK QUESTIONS TOO, AND MANY OF US IN THE COMMUNITY, UM, HE PULLED THIS OFF IN LIKE A COUPLE MONTHS, SO I WAS PRETTY IMPRESSED. UM, PLEASE WELCOME, SKIP TO SHARE MORE ABOUT HIS INITIATIVE. GOOD AFTERNOON. I'M GONNA DO SOMETHING A LITTLE LOGISTICALLY NEEDED HERE, ACCORDING TO THE CHAMBER OF COMMERCE EVENT COORDINATOR. I HAVE TO WEAR THIS AS MY COSTUME FOR TODAY 'CAUSE I DID IT DURING THE EVENT. SO I'M FESTOONED WITH THE SASH. GOING RIGHT? YEAH. THANK YOU, NANCY. SURE. UH, SOON AFTER ARRIVING IN THIS ART MECCA, UH, LATE LAST SUMMER, I KNEW THIS WAS MY HOME, MY LAST HOME, UH, THE ART MECCA, AND IT WAS MY FIRST OPPORTUNITY TO INCORPORATE MYSELF INTO THE WONDERFUL PEOPLE HERE WAS TO START VOLUNTEERING AT THE HERITAGE MUSEUM, WHICH I'VE DONE EVER SINCE. AND, UH, NATE HASN'T YET FIRED ME, SO I GUESS I'M DOING A PRETTY GOOD JOB, BUT I'M LEARNING THERE TOO, UH, ABOUT THE FAMILIES AND, AND THE HISTORICAL ASPECTS OF THIS TOWN. UM, BUT THEN I, I WAS LURED INTO THE GALLERIES, UH, WHERE I MET OBVIOUSLY THE OWNERS, BUT ARTISTS, COLLECTORS, UH, ASPIRING ARTISTS. AND THAT GAVE ME THE IDEA TO HAVE THEM CONVENE FIRST TIME EVER ON STAGE IN PERSON AND TALK ABOUT THEIR EXPERIENCES, UM, IN FRONT OF PEOPLE, BECAUSE I FOUND OUT THAT I SENSED THAT THEY WEREN'T COMMUNICATING A LOT WITH EACH OTHER, WHETHER IT'S THEIR SAME MEDIUM, WHETHER IT'S BRONZE, PAINTING, GLASS, WHATEVER. AND OTHER FOLKS, THEY, THEY GO BACK TO THEIR STUDIOS OR GARAGES AND AND THEY DON'T GET TOGETHER AND THEY DON'T CONSORT. SO I SAID, THIS IS AN OPPORTUNITY TO DO SOMETHING. [00:05:02] SO I SOUGHT SOME, UH, OPINIONS FROM PATRICK SCHWEISS AND LINDA GOLDSTEIN, AND BOTH OF THEM WERE ON BOARD IMMEDIATELY. ALTHOUGH IT WAS A TWO HOUR LUNCH WITH LINDA THAT I, IT WAS SUPPOSED TO BE A 15 MINUTE SEGUE INTO INTRODUCTION AND ASK FOR HER, BUT IT ENDED UP BEING A TWO HOUR LUNCH. AND THE NEXT DAY SHE CALLED AND SAYS, CSL BE YOUR MODERATOR. SO I WAS THRILLED. AND THEN WE OF COURSE LINED UP PERSONS WHOSE NAMES YOU CERTAINLY KNOW JAMES MUIR. YOU HAVE HIS, UH, CADU, UH, CASUS RIGHT OUT HERE IN YOUR COURTYARD. UM, AND SUSAN KLEER, WHOSE MONUMENTAL PIECE IS OVER AT THE LIBRARY, CHRIS NAVARRO AND, UH, PATINA SPECIALIST DEREK PETERSON AND KEN ROWE. WELL, NOT A DAY AFTER THAT FIRST SYMPOSIUM LAST MONTH OCCURRED, I WAS ASKED, WELL, WHEN'S THE NEXT ONE? AND WHAT'S IT GOING TO BE? I DON'T KNOW YET, BUT I HAVE SOME STRONG FEELING THAT WE'VE GOTTA KEEP THIS ROLLING EVERY FEW MONTHS TO HAVE ONE OF THESE SYMPOSIUMS. SO ON MY ORGANIZATION LIST IS MUSIC, UM, ART, GLASS PAINT, AND OTHERS. BUT IT'S GONNA TAKE SOME TIME TO LOCATE THE APPROPRIATE PEOPLE TO, UH, PARTICIPATE. BUT I REALLY DO WANNA, ESPECIALLY PUBLICLY AND GRATEFULLY THANK MR. MAYOR AND NANCY FOR YOUR EARLY SUPPORT FOR THIS, UH, IDEA. IT WAS JUST AN IDEA. IT COULD HAVE BEEN THE BIGGEST FLOP IN THE WORLD. WE ONLY HAD FIVE TICKETS SOLD A WEEK AHEAD OF TIME, AND OVER 50 ACTUALLY SHOWED UP. SO I WAS VERY PLEASED WITH THAT. UM, YOU WANNA ROLL YOUR SURE. SO WE JUST HAVE A COUPLE SLIDES TO SHOW OF THE EVENT. SO WE'LL START WITH LINDA GOLDSTEIN. UM, LINDA WAS THE PERFECT CHOICE TO MODERATE THE SYMPOSIUM, GIVEN HER KNOWLEDGE OF THE INDUSTRY AND HER CONNECTIONS WITH THE ARTISTS. SAY ANYTHING ABOUT LINDA. YEAH, LIKE I SAID, MY FIRST MEETING WITH, WITH LINDA WAS SUPPOSED TO BE SHORT, AND I WAS SO PLEASED THAT SHE, SHE GOT THE CONCEPT THAT WE NEED TO DO THIS, AND OF COURSE, SHE REPRESENTS MORE THAN 50 ARTISTS HERSELF. SO SHE WAS, UH, TOTALLY IN FAVOR OF IT. AS YOU KNOW, SHE'S A, A VERDE VALLEY SEDONA WOMAN ALL HER LIFE. AND, UM, HAS DONE WELL, UH, REPRESENTING VARIOUS ARTISTS IN VARIOUS MEDIA. BRONZE, OF COURSE, IS, UH, ONE OF HER PRIMARY ONES. SO I GIVE HER CREDIT ACTUALLY, FOR KEEPING THESE VERY INDEPENDENT, HARD TO GET AHOLD OF PEOPLE TO PARTICIPATE, KEEP HIM ONLINE AND ON TOPIC WHILE ON STAGE. SO SHE DID A GREAT JOB MODERATING IT, AND I APPRECIATED HER INVOLVEMENT IN THAT. AND THEN WE HAVE CHRIS NAVARRO, WHO'S A GALLERY OWNER. UH, CHRIS WENT FROM RIDING BULLS AND RODEOS TO PERFECTING THE IMAGE OF BULLS AND HORSES IN SCULPTURE. HE IS SELF-EDUCATED. YEAH, THOSE ARE HIS TERMS, SELF-EDUCATED. UH, HE DID START OUT AS A, A RODEO BULL RIDER, IF YOU CAN BELIEVE IT. AND THEN WAS AN OIL RIG LABORER FOR ABOUT EIGHT YEARS. UM, DECIDED THERE'S SOMETHING ELSE IN LIFE. AND HE WENT INTO A, A, A PLACE UP THERE IN THE MIDDLE OF WYOMING, AND THERE'S A, A PIECE OF SCULPTURE THERE THAT HE FELL IN LOVE WITH IT, AND HE SAID, I COULD DO THIS TOO. SO HE, HE GOT ALL THE SCULPTING MATERIALS HE NEEDED AND MANY BOOKS. AND THEN HIS FIRST ENTRY INTO A LOCAL, UH, CONTEST, UH, FOR SCULPTURE, HE WON FIRST PRIZE. AND SO THAT ENCOURAGED HIM, ESPECIALLY SINCE HE GOT THE FIRST PRIZE MONEY, WHICH WAS $15 . SO HE WAS HAPPY WITH THAT. AND THEN HE WAS ONTO SOMETHING. WHAT I GLEANED FROM HIS COMMENTS WAS THAT, UM, HE NEEDED TO TURN NOS INTO YESES. NO, WE CAN'T DO THIS. IT'S TOO HARD. I DON'T HAVE THE VISION FOR IT. DON'T HAVE THE TIME FOR IT. BUT HE CHANGED ALL THAT INTO YESES. HIS MOTTO IS THAT IN ORDER TO BE A SUCCESSFUL ARTIST OF ANY SORT, YOU HAVE TO HAVE FAITH COM CON COMPETENCE AND IGNORANCE. AND SO EVERYBODY CHUCKLED AT THAT, AND I THINK THEY'RE THINKING, WELL, I DON'T KNOW WHY I'M DOING THIS BECAUSE IT'S NOT WORKING OUT. BUT ANYWAY, HE STRUGGLED THROUGH IT. UM, HE ALSO SUGGESTED THAT IF YOU'RE AN ASPIRING ARTIST, TAKE LESSONS FROM AN ACCOMPLISHED ARTIST, ONE THAT HAS ALREADY FILLED A NICHE, SO TO SPEAK. AND HIS MONUMENTAL PIECES ARE PLACED AT SEVERAL UNIVERSITIES THROUGHOUT AMERICA. HE'S QUITE AN ARTIST. OKAY. AND THEN ERIC PETERSON IS A FOUNDRY OWNER. ERIC IS A PATINA PERFECTIONIST, AND HE PROVIDES THE FINISHING TOUCH ON ALL BRONZE SCULPTURES. HIS WORK IS AMAZING. I'VE BEEN IN A, IN HIS LOCATION THERE FOUR TIMES, AND HOW HE, HOW HE ENVISIONS THE BRONZE, WHAT COLOR HE WANTS TO GET OUT OF IT, DETERMINES WHAT KIND OF ACID HE PUTS ON IT, AND THEN HITS IT WITH A BLOWTORCH. HE'S, HE, HE'S A MASTER AT IT. UM, THAT'S WHY SEVERAL OF THE ARTISTS ON STAGE GO TO HIM FOR PATINA WORK. UH, HE'S A VERY SELF-ASSURED, CONFIDENT YOUNG MAN. UM, HE'S NOW MENTORING A YOUNG WOMAN WHO, AND SHE'S ONLY IN HER TEENS. UH, SHE ACTUALLY HAS CREATED [00:10:01] ONE PIECE ALREADY, AND IT'S LISTED, UH, IT'S ON DISPLAY AT A GALLERY IN SEDONA. SO SHE KEEP YOUR EYES ON HER, SHE'S GONNA GO PLACES. HER NAME IS NATALIE. NOW, I DO GET A LOT OF QUESTIONS ABOUT ERIC, SO I'LL ANSWER IT WITH ONE SHORT THING HERE. YES, HE IS A BACHELOR . SO ANYBODY THAT ASKS ABOUT HIM, JUST SAY HE'S A BACHELOR, HE'S AVAILABLE . OKAY. AND KEN ROWE IS AN AWARD-WINNING SCULPTOR. KEN WAS ORIGINALLY A TAXIDERMIST, WHICH I DIDN'T EVEN KNOW. I JUST LEARNED THAT. AND HIS KNOWLEDGE OF THE ANIMAL'S ANATOMY ENABLES HIM TO REPLICATE IT IN BRONZE. KEN RELAYED TO THE AUDIENCE HIS BEGINNING, WHICH WAS A TAXIDERMIST. AND HE SOMEWHAT COMICALLY SAID THAT WHEN HE INTRODUCED HIMSELF AND THE PROFESSION, HE WAS ALIGNED WITH THAT HE WAS A TAXIDERMIST. PEOPLE WOULD GET AN INITIAL RECOIL IN THEIR HEAD, YOU KNOW? WHOA. AND THEN HE LEARNED THAT IF HE SAID IT REAL FAST, IT SOUNDED LIKE TAX ATTORNEY. AND THEN THEY WERE MUCH MORE WILLING TO ENGAGE IN A CONVERSATION. BUT THEN ERIC SITTING HIM RIGHT NEXT TO ON STAGE SAID, YEAH, WELL, THEY'RE BOTH BAD . SO, UH, I'M GLAD THEY HAD THAT FUN WITH EACH OTHER UP THERE. KEN'S VERY HUMBLE AND QUIET, AND HE'S A TRUE FRIEND OF MINE. WHAT LAUNCHED HIM WAS SCULPTING AN ELK FROM A PHOTOGRAPH, AND HE TOOK IT TO ANOTHER FAMOUS SCULPTOR, THE NAME OF PAYNE, P-A-Y-N-A. I'M SURE YOU'VE HEARD OF HIM. HE SHOWED IT TO HIM. PAYNE LOOKED AT IT INTERESTING, BUT IT'S DEAD. WELL, KEN RECOILED IN SHOCK THINKING, I'M NEVER GONNA BE A SCULPTOR. WHY IS THIS BEAST DEAD? HE SAID, IT'S DEAD BECAUSE YOU TRIED TO SCOPE SOMETHING FROM A PHOTOGRAPH. SO IMMEDIATELY KEN WENT AND STARTED TOUCHING ANIMALS, THEIR FUR, THEIR BONES, THEIR KNEES, THEIR TEETH, THEIR EYEBALLS, LIVE ANIMALS THAT HAVE BEEN SOMEWHAT DOMESTICATED. AND HE GOT BACK INTO HIS TAXIDERMY EXPERIENCE AND KNOWLEDGE WITH HIS LEFT HAND TOUCHING THEM WHILE RIGHT HAND WORKING ON THE CLAY. THAT'S THE WAY HE STARTED IT. AND HE'S VERY SUCCESSFUL GALLERY OWNER TOO. INAKI, OKAY? MM-HMM . AND SUSAN CLEAVER IS AWARD-WINNING SCULPTOR. WE ALL KNOW, UH, SUSAN ORIGINALLY PAINTED HOPI AND NAVAJO FACES, AND THIS SKILL CARRIED HER INTO HER BRONZE WORK. I REALLY APPRECIATE SUSAN, BECAUSE SHE WAS THE FIRST ONE TO SAY, THIS HAS NEVER BEEN DONE BEFORE. WE'VE GOTTA DO THIS. SO I WAS ENCOURAGED. I SAID, WELL, THAT'S, THAT'S GREAT. I'M GLAD YOU LIKE THAT. THEN I KNEW I WAS ONTO SOMETHING. UM, HER MONUMENTAL BRONZE OF SEDONA SCHLEY AT THE COMMUNITY LIBRARY IS SO PRESENT. AND, UH, SINCE SEDONA WAS, UH, WORKED VERY HARD AT ESTABLISHING SEDONA AND THE SCHOOL EDUCATION SYSTEM HERE, IT'S VERY FITTING. UH, BUT SUSAN IS SUCH A WARM-HEARTED, VERY TALENTED PAINTER AND SCULPTOR. OKAY? AND JAMES MUIR IS AN AWARD-WINNING SCULPTOR. HE SEES SHAPE AND NOT COLOR. HE'S AN EXQUISITE ARTIST OF DETAIL WHOSE WORK IS DEEP IN SYMBOLISM. WELL, FROM THE FLATLANDS OF INDIANA, UH, TO THE MOUNTAINS OF SEDONA, THE GLORIOUS MOUNTAINS, ACTUALLY. UM, HE SAID THAT PEOPLE THAT COME HERE HAVE TO PROVE THEMSELVES WORTHY OF GOD'S MOUNTAINS. AND HE'S VERY, UM, RELIGIOUSLY ALLEGORICALLY ORIENTED IN HIS PIECES AND IN HIS WRITINGS. HIS BOOKS ARE FANTASTIC. HE DID GO TO ROTC IN HIGH SCHOOL, THEN WENT TO WEST POINT FOR JUST TWO YEARS, BECAUSE AS HE SAID, GOD HAD OTHER PLANS FOR ME. AND HE DID NOT WANT TO BE RESPONSIBLE IN THE VIETNAM ERA TO HAVE OTHER PEOPLE KILLED, SOMETIMES EVEN HIS OWN TROOPS, AND SOMETIMES HIMSELF. SO HE THEN BECAME A PRIVATE INVESTIGATOR, THEN A REAL ESTATE BROKER. AND HE COINED THE PHRASE NICHE MANSHIP. AND THAT WORD, I'VE HEARD IT SEVERAL TIMES SINCE LAST MONTH. WHAT HE MEANT BY THAT IS, IF YOU'RE GONNA DO SOMETHING, DO IT WELL. FILL A SPACE THAT NO ONE ELSE IS IN. AND THE DETAILS IN HIS WORK, JUST, UH, AT THE HERITAGE MUSEUM BEHIND THE TELEGRAPH, UH, BUILDING, THERE'S THE CALL OF THE CANYON SCULPTURE. IT'S MAGNIFICENT. UH, THE DETAILS ON THE COAT OF THOSE SETTLERS, OR ON THE WEDDING RING ITSELF OF ONE OF THE SETTLERS IS, IS AMAZING THE DETAIL ON THE RING OR THE CODE BUTTON. AND YET HE'S DOING A 12 FOOT HIGH SCULPTURE. IT'S JUST FANTASTIC. SO HE DOES FOCUS ON SYMBOLOGY, AS HE CALLS IT, AND ALLEGORICAL THEMES. AND, UH, IN MY MIND, HAVING READ HIS BOOKS, HE'S TRULY LEFT LANTERNS ON THE PATH FOR US TO FOLLOW. AND THAT'S ALL HE WANTS TO DO. OKAY? AND, UM, HERE ARE SOME WORKS OF ALL OF THE ARTISTS THAT WERE THERE ON DISPLAY OUT IN THE COURTYARD THAT MORNING. SOME PHOTOS OF THE INSIDE, [00:15:01] UH, WHEN THE PRESENTATION TOOK, UH, TOOK PLACE OF ALL THE ARTISTS, JUST SOME OUTDOOR SHOTS OF EVERYBODY BEFORE THE RIBBON CUTTING AND THE RIBBON CUTTING. I REALLY HAVE TO HANDLE HA HAND IT TO DAVID KEY, THE CEO OF THE SEDONA CHAMBER OF COMMERCE. WHEN I WALKED IN THERE SHORTLY AFTER ARRIVING HERE AND I WENT INTO, UM, JOIN THE CHAMBER, MET DAVID RIGHT AWAY, AND HIS STAFF, VERY COMPETENT, FRIENDLY STAFF. UM, IT WAS THEIR IDEA TO HOLD THIS RIBBON CUTTING CEREMONY. I HAD NEVER BEEN TO ONE. SO, UH, THIS IS THANKS TO YOU AND SHENANDOAH, RIGHT? BUT, UH, YOU KNOW, YOU GOTTA BE REMEMBERED FOR SOMETHING. AND I REMEMBER THE CHAMBER FOR ALL THE HELP THEY GAVE MY IDEA. AND YES, THERE WILL BE OTHER SYM SYMPOSIUMS. UM, WE'LL DECIDE WHEN AND WHAT THEY WILL BE ABOUT WITHIN THE NEXT TWO MONTHS, I THINK, IN THE PLAQUE. SO IN COMMEMORATION OF THE EXCELLENT SUPPORT I RECEIVED FROM MR. MAYOR AND NANCY, I'D LIKE TO PRESENT THEM WITH PLAQUES, IF I MAY. COME ON DOWN HERE. COME ON DOWN. THIS WON'T TAKE LONG. ALRIGHT. UM, ALRIGHT. THIS IS A PICTURE OF THE ACTUAL NEW CUTTING CEREMONY AT THE CIVIC THEATER. AND AGAIN, THANKS TO THE CHAMBER FOR PUTTING THIS ALL TOGETHER. YES. ON THE REAL CAMERA, JUST . YEAH. OKAY. UM, MR. MAYOR, WE ALL APPRECIATE YOUR SUPPORT AT THIS FIRST EVER SUCCESSFUL EVENT. AND I UNDERLINED THAT WITH THE MEMBER, THE ACRONYM SMART SMART S-M-A-R-T. SEDONA MEANS ART AND ART MEANS BUSINESS. SO THERE YOU ARE, SIR. THANK YOU. IT'S NANCY. YOU'RE A TRUE ROCK STAR FOR PROMOTING THE ARTS IN OUR COMMUNITY, MAKING THIS FIRST EVER EVENT TO SUCCESS. BOTH. NEXT TIME I'LL WEAR A BLUE SASH. OKAY. THANK YOU, SIR. THANK YOU. ABSOLUTELY. THANK YOU ALL. OKAY, ITEM THREE [3. CONSENT ITEMS - APPROVE] IS CONSENT ITEMS. UH, THIS IS THE OPPORTUNITY FOR THE STAFF, THE COUNCIL OR THE PUBLIC TO PULL ANY ITEM IN PARTICULAR. IS THERE ANY INTEREST IN THE, UH, COUNSEL TO PULL ANY ITEMS? SO, CAN I HAVE A MOTION FOR I, UH, TO CONSENT? NUMBER THREE, I'LL MAKE THE MOTION. I MOVE APPROVAL OF CONSENT ITEMS THREE A THROUGH C SECOND. OKAY. UH, ANY DISCUSSION? NO. ALRIGHT. ALL IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? WE UNANIMOUS? OKAY. APPOINTMENTS ITEM FOUR, WE HAVE NONE. SUMMARY [5. SUMMARY OF CURRENT EVENTS BY MAYOR/COUNCILORS/CITY MANAGER & COUNCIL ASSIGNMENTS] OF CURRENT EVENTS BY MYSELF, THE COUNCIL, CITY MANAGER, OR COUNCIL ASSIGNMENTS, ANYTHING. OKAY. SO A COUPLE OF THINGS. UH, LAST WEEK I HAD THE OPPORTUNITY TO MEET THE NEW MAYOR OF CAMP VERDE, MARIE MOORE. AND SHE'S GOING TO BE A WONDERFUL ASSET AND PARTNER IN THE VERDE VALLEY, TAKING DE JENKINS' POSITION. UH, ALSO ON MAY 29TH, I HAD MY SECOND MAYOR'S FORUM. THAT'S, UH, MY OWN INITIATIVE TO TRY TO BRING, UH, MAYORS FROM ACROSS THE STATE TOGETHER. AND YOU, IF YOU RECALL, BACK IN FEBRUARY, WE ONLY HAD EIGHT, UH, TOTAL. WE HAD SEVEN MAYORS AND ONE MANAGER. THIS TIME WE HAD A TOTAL OF 24 PEOPLE. AND NOT ONLY MAYORS, WE HAD MAYORS MANAGERS THERE DESIGNEE. WE HAD FOUR COUNTY [00:20:01] SUPERVISORS, THREE COUNTY ASSESSORS, REPRESENTATIVE BLISS, FORMER SPEAKER OF THE HOUSE, ANDY TOBIN, AND SENATOR MARK FINCHEM. AND, UH, INTERESTINGLY ENOUGH, THE NEXT DAY, UH, AFTER THE FORUM, AND THIS WAS A THREE HOUR EVENT, I RECEIVED A CALL THROUGH KATHY SENSEMAN FROM THE LEAGUE, WANTING TO NOW SIT DOWN AND TALK ABOUT SHORT TERM RENTALS. AND WE DON'T KNOW EXACTLY WHAT THAT'S GOING TO ENTAIL. THE VICE MAYOR AND I ARE GOING TO BE GOING DOWN THURSDAY AND HAVE THAT DISCUSSION, BUT THEY DEFINITELY WANT TO HAVE A GREATER DISCUSSION ON HOW THEY COULD MAKE SOME CHANGES. SO I THOUGHT THAT WAS VERY, VERY, UH, INTERESTING. I'M HOPING TO HAVE ANOTHER FORUM, UH, POSSIBLY JULY OR AUGUST. AND, UM, I JUST WANNA SHARE WITH YOU ONE THING THAT, YOU KNOW, EVERY TIME WE, WE HAVE THESE, I SAY WE, 'CAUSE THE VICE MAYOR IS WITH ME. UH, EVERY TIME WE HAVE THESE, WE LEARN SOMETHING NEW. AND THIS TIME, UH, THE MOJAVE COUNTY, UH, TAX ASSESSOR, JEANNIE KEN WAS THERE. SHE WAS ONE OF THE KEYNOTE SPEAKERS. AND SHE SAYS THAT 1350 KEEPS HER FROM DOING HER JOB APPROPRIATELY, WHERE SHE'S SUPPOSED TO TAX PROPERTIES FAILING, IMPART PARTIALLY FOR WHAT THE USE IS. AND SHE CAN'T DO THAT WITH SHORT TERM RENTALS. AND LIKE WE'VE HAD PROBLEMS OF MAKING CHANGES AT THE CAPITOL. THE COUNTY ASSESSORS ASSOCIATION HAS HAD PROBLEMS THERE NO CHANGES IN 10 YEARS. NOW THAT MEANS EVERY CITY AND COUNTY THAT CHARGES A PROPERTY TAX, OF COURSE WE DON'T, THEY'RE LOSING OUT ON HUNDREDS OF MILLIONS OF DOLLARS OVER THE YEARS OF TAXING FAIRLY AND IMPARTIALLY. SO THAT, THAT WAS JUST ONE OF MANY, UH, ALEX BARBER, UH, THE MAYOR OF JEROME FEELS THAT SHE'S LOSING HER, UH, HER TOWN BECAUSE THEY'RE LOSING ALL THEIR RESIDENTS. SO, UH, I'LL BE PUTTING OUT, UH, A VIDEO WHICH WILL HAVE THE, THE MEETING, UH, RECORDED. UH, THAT'LL BE PUBLIC RECORD. IT'LL BE GO OUT TO, UH, THROUGH A PRESS RELEASE IN THE NEXT COUPLE OF DAYS. SO, UH, I'LL KEEP YOU POSTED ON ANY, UH, FUTURE THINGS THAT WE DO. SO, UH, OKAY. WE NEED THE EXECUTIVE, UH, SESSION REPORT. KURT. THANK YOU MR. MAYOR. UH, AFTER THE EXECUTIVE SESSION TODAY IN OPEN SESSION CITY COUNCIL RECONSIDERED, ITS MAY 13TH MOTION, UH, TO GIVE THE CITY MANAGER 5% MERIT INCREASE EFFECTIVE ON THE, THE SUBSEQUENT, UH, UH, PAYROLL DATE, AND MOVE THAT TO HER ANNIVERSARY DATE OF APRIL 7TH. AND ADDITIONALLY, CITY COUNCIL APPROVED A 5%, UH, UM, ADJUSTMENT. WHAT WAS THE TERM TO THE BASE, BASE BASE SALARY EFFECTIVE, BUT THE REASONING FOR, FOR IT JULY 1ST MARKET RATE, THAT'S THE TERM I WAS LOOKING FOR. A MARKET RATE ADJUSTMENT. MARKET RATE, UH, BEGINNING JULY 1ST. THANK YOU. OKAY, THANK YOU. OKAY. UH, SO ITEM [6. PUBLIC FORUM] SIX, PUBLIC FORUM. I HAVE ONE CARD, CHERYL, UH, BARRON. WE HAVE ONE MORE CARD. UH, I DON'T KNOW, . OKAY. CHERYL, YOU WANT TO, YOU KNOW THE DRILL. THANK YOU. AND WHO'S GONNA BE AFTER? AND THEN, OH, DAVID KEY. YOU'LL BE ON, ON DECK. WE'RE ALL FRONT AND CENTER. UH, CAN YOU SET THE CLOCK FROM OVER THERE, JOE? OKAY. ARE YOU READY? NO, NO, NO. TAKE YOUR TIME. USUALLY PEOPLE AREN'T IN THAT MUCH OF A RUSH, BUT GO AHEAD. ALRIGHT. OKAY, GO FOR IT. HELLO, MY NAME IS CHERYL BARON. I AM A RESIDENT OF SEDONA, AND I'M HERE AS A RESIDENT OF SEDONA. JUST TO SHARE AN OPINION. IT'S NOT ON THE AGENDA TODAY, BUT THERE'S A LOT OF RHETORIC ABOUT WESTERN GATEWAY HOUSING, A VENUE, UH, MANY, MANY DIFFERENT OPTIONS TO CHOOSE FROM. SO, BECAUSE OF MY HISTORY IN THE LODGING INDUSTRY, UM, AND I THINK YOU ALL KNOW THAT I'M THE PRESIDENT OF THE LODGING COUNCIL. UM, I'VE ENDURED SHORT STAFFING. I HAVE SEEN SOME OF MY EMPLOYEES THAT ARE WITHOUT HOUSES TO LIVE IN. AND I'M A SERVICE WORKER. SO I HEAR MANY THINGS ABOUT, I DON'T WANT SERVICE WORKERS LIVING NEXT TO ME. I THINK THEY'RE DIRTY, I THINK THEY'RE LOW INCOME. THIS IS TER, THIS IS TERRIBLE TO HEAR. UM, SO INCORPORATING WORKFORCE HOUSING INTO THE WESTERN GATEWAY PROJECT IS CRUCIAL, CRUCIAL FOR FOSTERING A VIBRANT AND BALANCED COMMUNITY. THE HOSPITALITY AND SERVICE SECTORS ARE VITAL TO OUR ECONOMY AND ARE POPULATED BY INDIVIDUALS WHO ASPIRE TO BUILD FAMILIES AND CONTRIBUTE [00:25:01] ACTIVELY TO OUR COMMUNITY. PROVIDING AFFORDABLE HOUSING OPTIONS IN THIS SECTOR WILL ATTRACT AND RETAIN TALENTED WORKERS, ENSURING, SORRY, ENSURING A STABLE AND GROWING WORKFORCE. THIS, IN TURN, BENEFITS OUR SCHOOLS, LOCAL BUSINESSES, AND OVERALL COMMUNITY WELLBEING. BY INCREASING LOCAL SPENDING, SUPPORTING LOCAL BUSINESSES, AND CONTRIBUTING TO A MORE DIVERSE AND ROBUST COMMUNITY, THE PRESENCE OF A SKILLED AND ENGAGED WORKFORCE IN THE HOSPITALITY AND SERVICE SECTOR WILL ALSO CONTRIBUTE TO A MORE ACTIVE AND VIBRANT LIFE. IN SEDONA, THE PERCEPTION THAT SERVICE WORKERS ARE ALL LOW INCOME PEOPLE WON'T, WOULDN'T WANT LIVE. SORRY, LEMME START THAT OVER. THE PERCEPTION THAT SERVICE WORKERS ARE ALL LOW INCOME PEOPLE THAT YOU WOULDN'T WANT LIVING NEXT TO YOU IS A MISCONCEPTION THAT TO CHANGE THIS PERCEPTION, WE NEED TO HIGHLIGHT THE DIGNITY, PROFESSIONALISM, AND VITAL CONTRIBUTIONS OF SERVICE WORKERS IN THIS AREA, EMPHASIZING THAT THEY ARE DEDICATED MEMBERS OF THE COMMUNITY WHO DESERVE RESPECT AND OPPORTUNITY TO LIVE IN NEIGHBORHOODS WHERE THEY WORK. THANK YOU. THANK YOU, CHERYL. OKAY, DAVID, YOU'RE UP MAYOR, VICE MAYOR COUNCIL. MY NAME IS DAVID KEY. I'M HERE ON BEHALF OF THE GREATER SEDONA CHAMBER OF COMMERCE. YOU'VE HEARD FROM ME MORE THAN A FEW TIMES BY NOW, BUT I AM HERE ON BEHALF OF OUR MEMBERSHIP LETTING YOU KNOW THAT WE SURVEYED MORE THAN A HUNDRED MEMBERS AND THEIR DIRECTIVE TO ME AS THE EXECUTIVE OF OUR ORGANIZATION IS TO ADVOCATE FOR HOUSING, FOR HOUSING. SO I WAS AT THE PLANNING AND ZONING COMMISSION RECENTLY, AND THAT'S WHAT LEADS ME TO BE HERE. I, I HEARD A LOT OF CONCERNS. I HEARD A LOT OF NEGATIVITY AROUND HOUSING, UM, SOME OF WHAT CHERYL JUST SPOKE TO. UM, AND I JUST WANNA SAY THAT WE ARE COMMITTED AS YOUR PARTNERS IN SEDONA, FOR SEDONA, UM, TO KEEP, OF COURSE, A CRITICAL EYE ON THE PROJECTS THAT COME TO THAT PROPERTY. BUT TO OVERALL SUPPORT YOUR PLAN TO ADD HOUSING TO SEDONA, UM, IN SHORT COMMUNITIES GROW OR THEY DIE, UM, WE HAVE AN OPPORTUNITY TO GROW. AND I THINK THAT'S A BEAUTIFUL THING. AND I THINK OUR WORKFORCE WOULD BENEFIT FROM HAVING MORE OF THEIR EMPLOYEES CLOSE TO WORK. THERE ARE PLENTY OF STATISTICS OUT THERE THAT LEND ITSELF TO THE FACT THAT THE CLOSER YOU ARE TO WORK, THE HIGHER QUALITY OF LIFE YOU HAVE. SO, WHILE IT IS GREAT THAT OUR SUPPORTING COMMUNITIES HAVE HOUSING AVAILABLE, UM, IT'S NOT ENOUGH TO JUST SAY PROBLEM SOLVED. WE GOTTA BRING THEM CLOSER TO HOME. AND AS CHERYL ALLUDED TO, UM, IT'S A BEAUTIFUL THING TO HAVE ALL THESE FOLKS IN OUR COMMUNITY DOING THEIR PART, BEING A PART OF THIS COMMUNITY, UM, AND GROWING WITH IT. AND SO, JUST WANNA SAY OUR PLAN FROM HERE ON OUT IS TO SURVEY OUR MEMBERSHIP AND FIND OUT WHAT IS THEIR PRIORITY WITHIN THESE PLANS. BUT OVER OUR OVERALL, OUR PLAN IS TO SUPPORT THIS PROJECT, TO LOOK AT IT WITH A CRITICAL EYE AND BE HAPPY TO MEET WITH ANYBODY OPPOSING THIS PROJECT. BECAUSE FEAR IS EASY, HOPE IS HARDER. I HAVE FAITH THAT WE CAN FIGURE OUT A GREAT WAY TO EXECUTE THIS PLAN. AND I APPRECIATE YOU ALL STARTING THAT PROCESS. SO THANK YOU. THANK YOU, DAVID. ANY OTHER CARDS? SEEING NONE, WE'LL CLOSE THE PUBLIC FORUM. UH, ITEM SEVEN, PROCLAMATION, RECOGNITIONS AND AWARDS. THERE ARE NONE. SO WE'LL GO TO [8.a. AB 3223 Discussion/possible direction regarding approval of an Ordinance amending Sedona City Code Chapter 3.10 Claims and Demands Against the City (First Public Meeting).] A REGULAR BUSINESS ITEM, A AB 32 23 DISCUSSION, POSSIBLE DIRECTION REGARDING ADOPTION OF AN ORDINANCE. AMENDINGS SEDONA CITY CODE CHAPTER 3.10 CLAIMS AND DEMANDS AGAINST THE CITY. FIRST PUBLIC READING. MONIQUE, GOOD AFTERNOON, MAYOR, VICE MAYOR, COUNSELORS. UH, THIS IS THE FIRST OF, UH, TWO ITEMS THAT, UH, I HAVE ON THE AGENDA THIS AFTERNOON. AND BOTH OF THEM ARE IN TITLE THREE OF, OF OUR CITY CODE. THAT'S WHY ORIGINALLY I WAS GOING TO BRING THEM AS ONE AGENDA ITEM, BUT IN DISCUSSIONS WITH, UH, KURT, IT JUST DIDN'T MAKE SENSE. SO THAT'S WHY THIS ONE IS NOW COMING WITH THE, UM, THE MUCH LONGER, UH, NEXT ITEM. AT LEAST I HAVE MORE THAN THREE MINUTES TO TALK. SO, SO THIS, UH, PROPOSED CODE REVISION IS IN, UM, CHAPTER 3.10 OF THE SEDONA CITY CODE CLAIMS AND DEMANDS AGAINST THE CITY. EVERYTHING THAT IS BEING PROPOSED AS A REVISION IS SOMETHING THAT THE, UM, CITY MANAGER, CITY COUNCIL CITY ALREADY HAS AUTHORITY TO, TO DO. BUT IT MAKES SENSE AT THIS POINT TO CODIFY IT. SO WE'RE NOT IN A POSITION OF HAVING TO COBBLE TOGETHER A LEGAL ARGUMENT AT A CERTAIN POINT IN THE FUTURE. AND SINCE WE WERE ALREADY BRINGING ANOTHER TITLE THREE, UH, REVISION, IT JUST MADE SENSE. SO, UH, THIS ONE'S PRETTY SHORT, BUT WHAT I DID IS I PREPARED [00:30:01] A, A POWERPOINT, UH, GOING THROUGH WHAT THE CHANGES ARE, EVEN THOUGH IN YOUR PACKET THERE'S ALSO A RED LINE. UM, SO THE FIRST, UH, THING WE DO IS IN, UM, SECTION 0.10. WE'RE PROPOSING TO, TO CLARIFY THE LIEN AUTHORITY, THE SETTLEMENT AUTHORITY FOR NON-MONETARY CLAIMS, DISPUTES AND LAWSUITS AND SETTLEMENT AUTHORITIES FOR CLAIMS DISPUTES AND LAWSUITS BROUGHT BY THE CITY. SO RIGHT NOW, UH, THE CITY CODE SIMPLY ADDRESSES CLAIMS AGAINST THE CITY, BUT SOMETIMES WE BRING CLAIMS AGAINST OTHERS AS WELL. AND THIS IS JUST A LITTLE CLEANUP. UM, NOTICE OF CLAIM IS ONLY REQUIRED FOR MONETARY DAMAGES. SO IT MADE IT A LITTLE BIT MORE CLEAR FOR SOMEBODY THAT MIGHT BE READING OUR CITY CODE. I, UH, HAD NEVER HEARD OF A CITY VOLUNTEER MEDIATION SERVICE, AND I KNOW THAT THE STATE ATTORNEY GENERAL'S OFFICE CERTAINLY DOES NOT HAVE A MEDIATION OFFICE AT THIS POINT. I DON'T KNOW HOW LONG THESE HAVE BEEN IN THE CITY CODE. I, I SUSPECT FOR A LONG TIME. SO JUST SOME CLEANUP, UH, REMOVE BOTH THOSE REFERENCES SINCE THESE, UH, DO NOT EXIST. MONIQUE, WE, MY UNDERSTANDING THAT WE HAD A CITY VOLUNTEER MEDIATION PERSON UP UNTIL MAYBE JUST A YEAR AND A HALF, TWO YEARS AGO, AND I THINK HE RETIRED OR HE MOVED OUTTA STATE. PAUL FRIEDMAN. PAUL FRIEDMAN, YEAH. YEAH. THAT EXISTED. HE ONLY, THAT'S ONLY A YEAR, RIGHT? I THINK HE WENT. SO IS THAT SOMETHING YOU WANNA REMOVE? MIGHT THERE BE AN OPPORTUNITY? 'CAUSE HE WAS GOOD WHEN WE HAD, UH, CO MAYOR AND COUNCIL. SO THAT, THAT'S, THIS IS TALKING ABOUT A DIFFERENT MEDIATION SERVICE. SO THIS IS IN, IN THE CONTEXT OF IF THE CITY IS INVOLVED IN A DISPUTE. OKAY. THE CITY MANAGERS, UM, MEDIATION SERVICE IS STILL ONGOING AND STILL BE OFFERED. UM, AND THEY HAVE BEEN LOOKING AT GETTING A NEW MEDIATOR SINCE MR. FRIEDMAN LEFT. OKAY. ALRIGHT. DISREGARD . THANK YOU, KURT. I WAS UNAWARE OF THAT. UM, IN, UH, THIS, UH, THIS SECTION, UH, 0.40, UH, WE'RE, WE'RE KEEPING THE CITY MANAGER'S SETTLEMENT AUTHORITY AT $25,000 OR LESS, WHICH IT IS RIGHT NOW. WE'RE NOT PROPOSING ANY CHANGE TO TO THAT, BUT WE'RE, UH, PROPOSING TO, UH, REVISE THE C CITY MANAGER'S SETTLEMENT AUTHORITY TO INCLUDE THE, THE CLAIMS DISPUTES AND LAWSUITS, UH, BROUGHT BY THE CITY, AND THOSE IN CONNECTION WITH EASEMENT AND PROPERTY ACQUISITIONS OR CONDEMNATION ACTIONS. ALL CONDEMNATION ACTIONS COME TO C CITY COUNCIL TO BEGIN WITH, BUT THIS IS SIMPLY AFTER THE CITY COUNCIL HAS VOTED ON SOMETHING. IT PROVIDES AUTHORITY FOR THE CITY MANAGER AFTER THAT. UM, AND WE'RE ADDING THE, UM, A NEW, UH, PRO PROVISION, UM, REVISING CITY MANAGER'S AUTHORITY TO INCLUDE FILING A LIEN WITH THE COUNTY RECORDER'S OFFICE AGAINST REAL PROPERTY FOR UNPAID CIVIL PENALTIES, ABATEMENT COSTS, AND ANY OTHER COSTS OWED TO THE CITY IN CONNECTION WITH A SPECIFIC REAL PROPERTY THAT ARE MORE THAN 30 DAYS OVERDUE. I DID A LITTLE BIT OF RESEARCH ON THIS BECAUSE WE HAVE, UH, AUTHORITY TO ASSESS CIVIL PENALTIES, AND WE DO HAVE AUTHORITY TO ASSESS LIENS. AND OTHER CITIES IN ARIZONA HAVE ACTUALLY CODIFIED THIS IN THEIR CITY CODE AS WELL. SO THIS WILL JUST, UM, MAKE IT EASIER FOR WHEN WE GET SOME OF THOSE, UH, YOU KNOW, REALLY LATE, UH, UNPAID CIVIL PENALTIES. WE HAVE A, A SIMILAR PROVISION FOR OUR, UM, SEWER OF CHARGES. SO, SO THIS IS, UH, SIMPLY KIND OF A COMPANION PROVISION TO THAT ONE. AND THEN, UM, CITY COUNCIL'S, UH, SETTLEMENT AUTHORITY WAS COMBINED WITH CITY MANAGERS. SO WE'RE GIVING YOU YOUR VERY OWN SECTION FOR, UH, CITY COUNCIL AUTHORITY TO, TO SETTLE CLAIMS. AND, AND REALLY IT'S, UH, LIKE I MENTIONED, IT'S JUST VERY SHORT. IT'S JUST, UH, CODIFYING, UM, EXISTING AUTHORITY THAT THAT EXISTS. IT'LL JUST MAKE IT, UM, EASIER MOVING FORWARD THERE. UH, ANY, UH, QUESTIONS? UM, UM, AND, AND SINCE THIS IS JUST THE, UH, THE FIRST PUBLIC READING, UH, THERE'S, THERE'S NO MOTION. UM, NOTHING ELSE. SO, UH, SINCE THERE'S NO QUESTIONS, SO THEN, UM, I'LL PLAN ON JUST PUTTING THIS ON A, UH, CONSENT AGENDA, UH, WHEN I CAN, UM, MEET THE NEXT MEETING. SO I'M NOT SURE WHAT, MAYBE THE JULY 8TH. I'LL HAVE TO LOOK AND SEE WHAT THE DEADLINES ARE. I HAVE ANY QUESTIONS FOR ADEAS? OKAY, WE'RE GOOD. OKAY. NOW YOU GOT THE, UH, ITEM [8.b. AB 3224 Discussion/possible direction regarding approval of an Ordinance amending Sedona City Code Chapter 3.05 Purchasing (First Public Meeting).] B WOULD BE AB 32 24. DISCUSSION POSSIBLE DIRECTION REGARDING ADOPTION OF AN ORDINANCE AMENDING SUSAN CITY CODE CHAPTER 3.05, PURCHASING FIRST PUBLIC MEETING. I, UH, DON'T KNOW HOW TO CHANGE TO MY NEXT POWERPOINT . THAT'S WHY WE HAVE JOE FOR ALL THAT KIND STUFF. YOU KNOW, I WASN'T GONNA DO POWERPOINT ON, ON THIS, UH, FIRST AGENDA ITEM BECAUSE IT WAS SO SHORT. BUT I DID A POWERPOINT FOR THE SECOND ONE BECAUSE IT'S FAIRLY LENGTHY AND I, I, I SUSPECT [00:35:01] THAT, UH, LIKELY THERE WILL BE SOME QUESTIONS AND THERE WILL BE SOME CONVERSATION ON THIS NEXT ITEM. THANK YOU. UH, AND, UH, ALSO PRESENTING WITH ME ON, ON THIS ITEM IS OUR FANTASTIC PROCUREMENT OFFICER IAN , THAT YOU ALL KNOW. UH, SO ON THIS ONE, UH, PLEASE FEEL FREE TO INTERRUPT ME AT ANY POINT IN MY PRESENTATION IF YOU HAVE ANY QUESTIONS. UH, CLARIFICATIONS, IAN, UH, LIKEWISE. IF, UH, YOU FEEL I'M, I'M LEADING COUNCIL ASTRAY, , PLEASE, UH, REEL ME IN. UM, SO CHAPTER 3.05 PURCHASING, UM, IT HAS NOT HAD ANY MAJOR REVISIONS SINCE 2007. IT, IT'S HAD SOME MINOR REVISIONS, BUT, BUT NOTHING MAJOR. AND A LOT OF THINGS HAVE CHANGED SINCE 2007. UM, WE DO A LOT OF CONSTRUCTION PROJECTS, AS YOU KNOW, SINCE THE AGENDA IS USUALLY FULL OF THEM. AND, UH, THE CITY IS SUBJECT TO ARIZONA REVISED STATUTES, TITLE 34 FOR, FOR CONSTRUCTION PROJECTS, CONSTRUCTION PROFESSIONAL SERVICES. SO, WHAT ONE OF THE MAIN DRIVERS OF THIS IS TO, TO, TO PUT IN THE CITY CODE, UH, RE REFERENCING WHAT THE STATE ACTUALLY RE REQUIRES OF US. SO THERE WERE A FEW AREAS WHERE IT WAS KIND OF MIXED IN WITH NON-CONSTRUCTION. AND SO WE, WE STRAIGHTENED THAT OUT, BUT IT WASN'T IAN AND I SITTING IN A ROOM JUST , WHAT CAN WE, YOU KNOW, GET IN OUR CITY CODE? IT, IT WASN'T IAN, UM, CONVENED A PROCUREMENT AND CONTRACT LIAISONS COMMITTEE WITH, UH, UH, REPRESENTED BY EVERY DEPARTMENT IN THE CITY THAT CHOSE TO PARTICIPATE. WE HAD, UH, AT LEAST FOUR MEETINGS. SO THESE CITY CODE PROPOSED REVISIONS ARE, UM, A, A COMBINATION OF, OF STAFF THROUGHOUT THE CITY, UH, IAN'S EXPERTISE, UM, WITH, UH, BEST, UM, PRACTICES RIGHT NOW IN PROCUREMENT. AND MY OWN KNOWLEDGE AND EXPERIENCE AS A, AS A CONTRACT ATTORNEY FOR THE ATTORNEY GENERAL'S OFFICE IN THE CITY OF PHOENIX. SO WE, WE DIDN'T TAKE, TAKE THIS, UH, LIGHTLY, BUT WE UNDERSTAND THAT THERE, THERE APPEARED TO BE A LOT OF REVISIONS. UH, THE RED LINE WAS, WAS, WAS PRETTY RED. SO, UH, ALSO IN YOUR PACKET, IT WAS A CLEAN VERSION. AND THAT WAS REALLY THE IMPETUS TO, YOU KNOW, LET'S JUST SIT DOWN AND DISCUSS WHAT DOES THE CITY CODE SAY NOW? WHAT ARE WE PROPOSING FOR YOU TO CONSIDER FOR CHANGES MOVING FORWARD? AND THAT'S WHY I, I DID A POWERPOINT PRESENTATION. SO THERE'S A, A BRAND NEW SECTION FOR DEFINITIONS. UM, IN THESE DEFINITIONS I HAVE INCLUDED IN THIS POWERPOINT PRESENTATION TO PUT 'EM IN CONTEXT. BUT WE, WE DON'T CURRENTLY HAVE DEFINITIONS NOT TO GO CRAZY, NOT TO HAVE A HUGE LENGTHY CITY CODE, BUT JUST ENOUGH TO, TO, TO REALLY ASSIST THE, THE PEOPLE WHO, UM, MAKE DECISIONS, SIGN CONTRACTS, APPROVE PURCHASES. UH, SO TH THIS SECTION, WHAT WHAT WE ARE PROPOSING IS ADDING THE PROCUREMENT OFFICER AS A PURCHASING AGENT FOR THE CITY. RIGHT NOW, THE ONLY PURCHASING AGENT IS THE CITY MANAGER. UM, AND, AND YOU'LL SEE AS WE GO, WE'RE, WE'RE NOT PROPOSING THAT THE, UM, PURCHASING AGENT HAVE ANY, UM, SIGNATURE AUTHORITY, BUT THERE'S CERTAIN PLACES WHERE IT JUST MAKES SENSE. HE'S OUR PROCUREMENT OFFICER. HE, HE NEEDS TO HAVE SOME, UH, UH, YOU KNOW, RECOGNIZED DUTIES. WE'RE ALSO, UM, FORMALIZING THE PROCUREMENT MANUAL. THE CITY HAS HAD A PROCUREMENT MANUAL FOR, FOR MANY, MANY YEARS, AND IT GETS UPDATED, UM, INFREQUENTLY, BUT THAT'S WHERE THE, UH, HOW TO IS FOUND. SO THE PROCUREMENT CODE ITSELF IS, IS KIND OF THE, THE, THE PILLARS OF WHAT IS IT THAT CITY COUNCIL WANTS THE CITY TO DO WHEN WE'RE BUYING THINGS. BUT THE PROCUREMENT MANUAL IS, IS, IS HOW TO DO IT. UH, SO THE PROCUREMENT MANUAL HAS SOME SUMMARIES, SOME CHECKLISTS. WE'RE GONNA HAVE SOME TEMPLATES IN THERE. AND, AND WE FELT IT WAS IMPORTANT ENOUGH TO ACKNOWLEDGE THAT, UH, IN, IN THE CITY CODE AND TO ACKNOWLEDGE THAT IT WILL BE REVISED. ANY REVISIONS TO THE PROCUREMENT MANUAL WILL REQUIRE THE CITY MANAGER'S, UH, APPROVAL. AND THEN LIKEWISE, WE THOUGHT IT WAS IMPORTANT TO PUT, UH, UH, YOU KNOW, PROVISION IN THERE ABOUT WHAT'S NOT INCLUDED IN THE PROCUREMENT CODE. UM, IGAS GRANTS THAT THE CITY MIGHT AWARD LEGAL SERVICES HIRED BY THE CITY ATTORNEY, PETROLEUM FUELS OR ENERGY PURCHASES AUTHORIZED BY COUNCIL AND DEVELOPMENT AGREEMENTS IN THESE TYPES OF, UM, EXCLUSIONS. UH, THEY'RE COMMON IN OTHER CITIES. THEY'RE COMMON IN THE, THE STATE. SO WE LOOKED AT A LOT OF DIFFERENT RESOURCES, UM, WHEN WE WERE PREPARING THESE REVISIONS FOR, FOR YOUR CONSIDERATION. THIS IS WHERE THERE'S A QUITE A FEW CHANGES. I WANNA TALK A MINUTE ABOUT THE, THE THRESHOLDS. I THINK A LOT OF CITIES DON'T REALIZE THAT THE, THE THRESHOLDS THAT EXIST IN THE ARIZONA REVISED STATUTES, THE CITIES ARE NOT SUBJECT TO THEM. UH, THE, THE THRESHOLDS EXIST FOR STATE AGENCIES AND FOR COUNTIES, CITIES OFTEN, UH, FOLLOW THOSE SAME THRESHOLDS BECAUSE WE [00:40:01] DO A LOT OF COOPERATIVE PURCHASING TOGETHER. UM, BUT THE CITIES DON'T HAVE A, A THRESHOLD AT ALL. THE THRESHOLD THAT THE COUNTY AND THE STATE ARE SUBJECT TO. I JUST WANT TO GIVE YOU A LITTLE HISTORY OF THAT. UM, RIGHT NOW IT'S AT A HUNDRED THOUSAND DOLLARS FOR, UM, FORMAL SOLICITATIONS. AND I'M GETTING AHEAD OF MYSELF. 'CAUSE FIRST I'M GONNA GO OVER OUR SIGNATURE AUTHORITY AND THEN THE SOLICITATION, UM, THRESHOLD AMOUNT. BUT IN 2004, THE STATE LEGISLATURE INCREASED FOR THE STATE AGENCIES AND THE COUNTIES. THEY INCREASED THEIR, UM, AMOUNT THAT THEY DON'T HAVE TO DO A SOLICITATION FROM 35,000 TO $50,000. THAT WAS 21 YEARS AGO. AND A LOT OF CITIES YOU'LL SEE STILL HAVE THAT 50,000 BECAUSE THEY'VE NEVER UPDATED THEIR CODE. UM, OR THEY MIGHT HAVE UPDATED IT, BUT NOT THE, THAT PROVISION IN 2013 IS THE LAST TIME THE STATE LEGISLATURE HAS UPDATED THE SOLICITATION THRESHOLD FOR COUNTIES AND FOR THE STATE AGENCIES. THAT'S 12 YEARS AGO. THEY UPDATED IT FROM 50,000 TO $100,000. UH, I WOULD IMAGINE THAT THE COUNTIES AND THE STATE AGENCIES HAVE BEEN ASKING FOR FURTHER REVISIONS, BUT SO FAR NONE HAS COME, BUT OTHER CITIES ARE TAKING IT UPON THEMSELVES TO INCREASE THAT SOLICITATION THRESHOLD. UH, CITY OF PHOENIX IS THE, UM, THEY'VE GONE UP TO $250,000. WE'RE NOT PROPOSING $250,000, BUT BECAUSE WE HAVE TIME AND WE HAVE A LARGE AUDIENCE, I THOUGHT THAT THAT TRIP DOWN HISTORY LANE MIGHT, MIGHT BE, UM, INTERESTING. IT'S INTERESTING TO ME. UM, SO THIS IS WHAT WE'RE PROPOSING. SO, UH, PURCHASING THRESHOLDS AND APPROVALS ARE IN THE SAME SECTION. SIGNATURE AUTHORITY IS THE FIRST ONE I WANNA TALK ABOUT. SO RIGHT NOW IN THE CITY CODE, DEPARTMENT HEADS HAVE SIGNATURE AUTHORITY FOR $50,000, UH, IN CONTRACTS OR PURCHASES, NOT PROPOSING ANY CHANGE. DEPARTMENT HEADS WILL STAY AT $50,000. AND THIS CAME FROM OUR, OUR DEPARTMENT GROUP THAT WE HAD, OUR, OUR LIAISONS, THE CITY MANAGER AUTHORITY RIGHT NOW, UH, SHE HAS SIGNATURE AUTHORITY UP TO $100,000. UH, WE ARE PROPOSING THROUGH THE CITY CODE REVISION TO INCREASE CITY MANAGER SIGNATURE AUTHORITY TO $150,000. SO SHE WOULD SIGN CONTRACTS AND APPROVE PURCHASES BETWEEN THE 50,000 AND 150,000, ANYTHING ABOVE 150,000 WOULD REQUIRE, UH, COUNSEL'S, UH, APPROVAL. SO THAT, THAT'S A PRETTY SIGNIFICANT CHANGE. BUT THIS A HUNDRED THOUSAND HAS BEEN IN THE CITY CODE, UH, FOR, FOR MANY, MANY YEARS, HAS NOT CHANGED. UM, TWO, I BELIEVE THAT WAS 2007, 2008, UH, CHANGE. AND THEN ALSO, WHAT IS NOT CHANGING AS ALL CONTRACTS REQUIRE CITY, UH, ATTORNEY APPROVAL. SO THAT'S SIGNATURE, UH, UH, AUTHORITY WHO CAN APPROVE A, A PURCHASE. BUT WHAT'S THE PROCESS TO GET TO, TO, TO THAT? UH, SO WE'RE PROPOSING A FEW CHANGES THERE AS WELL. RIGHT NOW IN OUR CITY CODE, UH, THE DEPARTMENTS CAN, UH, PURCHASE GOODS OR SERVICES, AND I, I HAVE MY NEXT SLIDE SHOWS THE DEFINITION OF GOODS AND SERVICES. RIGHT NOW, THEY CAN, UM, PURCHASE, UH, LESS THAN 10,000 WITHOUT ANY, UH, PRICE QUOTES. WE'RE PROPOSING THAT THAT BE INCREASED FROM 10,000 TO 25,000. BUT ALTHOUGH THEY DON'T HAVE TO OBTAIN PRICE QUOTES IN THE CITY CODE, UM, PROPOSED REVISIONS, THAT THERE IS A, A SAFEGUARD THAT, UH, IAN HAD PROPOSED THAT LANGUAGE. YEAH. SO THE SAFEGUARD THAT MONIQUE'S REFERRING TO IS THAT WE DO REQUIRE THE DEPARTMENT HEADS OR WHOEVER IS, UM, REVIEWING, UH, THE PURCHASE TO MAKE SURE THAT THEY'RE OBTAINING REASONABLE PRICING, THAT THEY'RE DOING, UH, NECESSARY DUE DILIGENCE. UM, ALSO, YOU KNOW, THE, UH, PURCHASES ABOVE 10,000 CURRENTLY REQUIRE THROUGH FINANCIAL POLICY, A PURCHASE ORDER TO BE ISSUED. SO THERE IS THAT ADDITIONAL LEVEL OF REVIEW THAT THEY HAVE, UH, COMING THROUGH MY OFFICE BEFORE THE PO'S ISSUED. AND THAT'S NOT CHANGING. NO, SIR. THAT'S NOT CHANGING. AND THEN RIGHT NOW, UM, GOODS AND SERVICES, UH, BETWEEN, UH, 10,000 AND 50,000 CURRENTLY REQUIRE THREE WRITTEN PRICE QUOTES, ALTHOUGH IT TAKES TWO SECTIONS IN OUR CITY CODE TO SAY THAT BASICALLY THAT'S WHAT IT IS, 10,000, 50,000, THREE WRITTEN PRICE QUOTES. UH, WE'RE PROPOSING TO, UH, INCREASE THAT, UH, TO GOODS OR SERVICES BETWEEN 25,000 AND THE $150,000 SOLICITATION THRESHOLD THAT WE'RE PROPOSING THREE WRITTEN PRICE QUOTES. UM, BUT WITH THOSE THREE WRITTEN PRICE QUOTES, UM, IAN, HOW DO THEY THEN SELECT WHICH OF THE THREE TO CHOOSE? YEAH, SO THIS WOULD, UM, BE A BEST VALUE ANALYSIS. SO RATHER THAN POTENTIALLY THE LOWEST BID WINS, IT WOULD BE THE DEPARTMENTS ACTUALLY, [00:45:01] UH, REVIEWING THE OFFERS THAT WE'VE RECEIVED AND DETERMINING WHAT IS BEST VALUE FOR THEM. UM, SURE EVERYBODY PRACTICES THAT TO SOME EXTENT IN THEIR OWN LIVES. UM, SOMETIMES THE CHEAPEST THING ISN'T NECESSARILY THE BEST DECISION, UH, FOR THE, FOR THE PERSON OR ORGANIZATION. SO THIS WOULD BE FOLLOWING BEST VALUE, UM, METHODOLOGY. AND THEN WE'RE, UH, PROPOSING, UH, FORMAL SOLICITATION, UM, THE THRESHOLD INCREASE FROM 100,000 TO $150,000. AND THE REASON THAT WE'RE IN THE CITY CODE PROPOSING, IT'D BE CALLED GOODS OR SERVICES, THAT, THAT'S COMMON TERMINOLOGY AROUND THE STATE. UM, OUR PRO PROCURE OR, UH, CONTRACT TEMPLATES, UH, ONCE WE GET OUR NEW CITY, UH, CODE, UM, HOPEFULLY IT'LL BE IN EFFECT SOMETIME AUGUST, SEPTEMBER, UH, AND THEN WE'LL HAVE DIFFERENT TEMPLATES. WE'LL HAVE A GOODS OR SERVICES TEMPLATE. MONIQUE, JUST, UH, I THINK THE QUESTION'S FOR IAN, REALLY, HOW, WHAT ARE WE TALKING ABOUT IN, IN TERMS OF THE PERCENTAGE OF SOLICITATIONS THAT WE DO OR ORDERS, YOU KNOW, HOW MANY ARE OVER 150,000, YOU KNOW, JUST GENERALLY. SURE. THAT'S A GREAT QUESTION. I ACTUALLY JUST THIS, UH, PAST MARCH IMPLEMENTED ELECTRONIC BIDDING. SO WE'RE STARTING TO KIND OF GET SOME OF THAT DATA ABOUT, UM, WHAT OUR, OUR CONTRACTS ARE. BUT ALSO, YOU KNOW, WE'RE CHANGING APPROACH TO SOME OF, UH, THE GOODS AND SERVICES THAT WE PROCURE, FOR EXAMPLE, SOMETHING THAT WE MAY GO OUT AND GET ONCE, UH, OR TWICE DURING A FISCAL YEAR. UH, WE'RE TRYING TO UNDERSTAND, WELL, MAYBE IT'S BETTER FOR US TO GET A LONGER TERM RELATIONSHIP AND, AND, AND HOPEFULLY LOCK IN PRICES AT THE SAME TIME. UM, THE, THE DOLLAR AMOUNT, I, I WOULD SAY WOULDN'T AFFECT TOO MANY OF THE FORMAL SOLICITATIONS THAT WE'VE ISSUED. MOST OF THOSE, UM, ARE EITHER WELL OVER A HUNDRED THOUSAND OR, UH, SOMETIMES ARE UNDER THE BID THRESHOLD, BUT WE FELT IT'S IN, UH, BEST PRACTICES TO ACTUALLY GO OUT PUBLICLY AND SEE WHAT WE CAN FIND. SO, I'M SORRY, I DON'T HAVE A DATA-DRIVEN ANSWER TO YOUR QUESTION, BUT I HOPE TO, UH, NEXT TIME, UH, MAYBE, MAYBE AROUND THIS TIME NEXT YEAR, HAVE SOME MORE ANALYSIS ON THAT. SO JUST, YOU KNOW, LIKE, IS IT 10%, 20%? I WOULD SAY SOMEWHERE IN THAT BALLPARK. UH, 10% ISH. YEAH. OKAY. THANK YOU. YEP. HOLD ON. YOU KATHY, JUST BEEN MARINATING IN WHAT YOU SAID ABOUT A PURCHASE ORDER BEFORE UHHUH . UM, DOES THAT PURCHASE ORDER GO FOR EVERY DOLLAR AMOUNT FROM $1 TO TWO $25,000, OR WHERE YOU SAID THE, AND DOES IT NEED PRE-APPROVAL PURCHASE ORDER? SO PURCHASE ORDERS, UM, BY FINANCIAL POLICIES CURRENTLY ARE REQUIRED AT 10,000 AND ABOVE. SO ANYTHING 10,000 OR ABOVE REQUIRES A PURCHASE ORDER. UH, WE DO ISSUE PURCHASE ORDERS FOR, UH, UH, GOODS AND SERVICES LESS THAN THAT. UM, THE, UH, PART OF OUR CHALLENGE RIGHT NOW IS, UH, RELATED TO OUR, OUR TECHNOLOGY, UM, OUR FINANCIAL TECHNOLOGY, AS YOU KNOW, WE'RE GOING THROUGH A PROCESS TO EVALUATE AND SELECT A NEW, UM, SOFTWARE. THE MAJORITY OF THE PURCHASES THE CITY CURRENTLY MAKES, OR THAT KIND OF PRE-APPROVAL, UH, GO THROUGH THAT. OTHERWISE, THEY MAY HAVE A CONTRACTS IN PLACE THAT AUTHORIZE THE PURCHASE OF THE GOOD OR SERVICE. UM, SO SOMETIMES THE PO UH, MAY COME AFTER THAT CONTRACT'S, UH, ISSUED, IF THAT MAKES SENSE. IT DOES, AND THAT'S WHY I ASKED THE QUESTION, BECAUSE I'VE BEEN INVOLVED IN GOVERNMENT WHERE THE PURCHASE HAPPENS, AND THEN ALL THE PAPERWORK, THE PURCHASE ORDER, THE BILL OF SALE, EVERYTHING GETS TRANSMITTED TO THE ADMINISTRATIVE OFFICE ALL AT THE SAME TIME. AND THERE'S BEEN NO PRIOR REVIEW OR APPROVAL OF THE PURCHASE BECAUSE THERE'S NO PRIOR APPROVAL NEEDED FOR THE PURCHASE ORDER. IT'S A THEORY, BUT IT DOESN'T HAPPEN IN PRACTICE. SO THAT IS, UH, ENTIRELY TRUE. THAT DOES HAPPEN IN GOVERNMENT. UM, I WOULD SAY THAT ONE OF MY MAIN, UH, OBJECTIVES GOING FORWARD AS A PROCUREMENT OFFICER FOR THE CITY IS TO IMPROVE OUR COMPLIANCE RATE ON ITEMS LIKE THAT, UM, AND ENSURE THAT WE'RE FOLLOWING BEST PRACTICES. I KNOW, YOU KNOW, AT THE FEDERAL LEVEL, UH, THERE'S NOT MUCH OF THAT GOING ON BECAUSE THERE ARE QUITE, UH, SEVERE CONSEQUENCES, UH, FOR, FOR PURCHASES THAT ARE, UH, TYPICALLY REFERRED TO AS UNAUTHORIZED PURCHASES, RIGHT. DONE OUTSIDE OF THE REQUIRED, UM, PROCESS. BUT WE DO HAVE POLICY IN PLACE. UM, I'M OVERSEEING THAT THE DEPARTMENTS HAVE BEEN FANTASTIC AT WORKING WITH ME ON THIS. SO WE'RE WORKING TOWARDS, UH, BETTER COMPLIANCE RATES ON THAT. DO YOU THINK THAT THERE'S A WAY THAT, THAT SORT OF GAP SHOULD BE ADDRESSED IN THE POLICY REVISIONS THAT WE'RE CONSIDERING TONIGHT? NOT IN THE CITY CODE AS MUCH AS, UH, MONIQUE HAD SPOKEN TO THE, UH, REVISIONS THAT WE'LL BE MAKING TO THE PROCUREMENT POLICY. SO THAT'S REALLY IN MORE INTO THE WEEDS. THIS IS A HIGH LEVEL, UH, THE PILLARS, UH, AS MONIQUE SAID, OF [00:50:01] HOW THE CITY ENVISIONS, UH, OUR PROCUREMENT AND PURCHASING CYCLE TO WORK. THE POLICY WILL PUT INTO PLACE MORE SPECIFICS FOR HOW STAFF SHOULD GO THROUGH THAT PROCESS. UM, AND THAT, AGAIN, WILL BE ANOTHER COLLABORATIVE PROCESS SIMILAR TO WHAT WE DID COMING UP WITH THE CITY CODE REVISIONS ONLY, I WOULD IMAGINE, UH, SOMEWHAT LENGTHIER OF A PROCESS THAN THAT. AND, AND, AND AGAIN, YOU SAID PURCHASE ORDERS, UH, FOR AT 10,000 AND ABOVE? THAT'S CORRECT. AND WOULD YOU BE CONSIDERING IN THE REVISIONS OF YOUR POLICIES OF LOWERING THAT AMOUNT? MY REVISIONS, MY SUGGESTIONS TO STAFF AND WHAT I WANT TO DISCUSS WITH THEM IN CITY MANAGEMENT ARE THAT WE DON'T LOOK AT A DOLLAR THRESHOLD AS MUCH AS WHAT IS APPROPRIATE TO ISSUE A PURCHASE ORDER FOR VERSUS USE A CREDIT CARD FOR AS A PURCHASE. AND THAT THERE ARE REALLY ONLY, ONLY, UH, CERTAIN INSTRUMENTS OR, OR WAYS TO MAKE AN AUTHORIZED PURCHASE ON BEHALF OF THE CITY, AND THAT WE IMPLEMENT A POLICY THAT REFLECTS THAT. WE THANK YOU. YOU'RE WELCOME. OKAY. CONTINUE ON. UM, SO LIKE I, UM, MENTIONED, UH, WE, WE HAVE SOME DEFINITIONS THAT WE'RE PROPOSING, UH, GOODS. THIS IS A, A REALLY A BROAD DEFINITION THAT I, UM, I COMBINED A, A COUPLE OF DIFFERENT DEFINITIONS. IT SEEMS PRETTY STRAIGHTFORWARD, BUT GOODS IS BASICALLY ANYTHING, UH, TANGIBLE SUPPLIES, MATERIALS, WE USE SUPPLIES AND MATERIALS IN OUR, UM, PROCUREMENT CODE RIGHT NOW. BUT THIS IS WHERE IT, IT DOES GET CONFUSING WITH SERVICES. AND I, I THINK THAT, UM, EVERY CITY, EVERY STATE AGENCY, EVERY COUNTY HAS TO DEAL WITH SERVICES. THERE'S ACTUALLY THREE DIFFERENT TYPES OF SERVICES. THERE ARE SERVICES THAT WOULD BE WITH A GOODS AND SERVICES TEMPLATE, WHICH, UH, THIS IS OUR PROPOSED DEFINITION UNRELATED TO A CONSTRUCTION PROJECT RENDERED BY A PERSON WHO DOES NOT REQUIRE ADVANCED TRAINING OR SPECIALIZED KNOWLEDGE. AND WE GIVE SOME EXAMPLES IN THE PROPOSED, UM, DEFINITION, LANDSCAPE SERVICES, CLEANING SERVICES, VEHICLE MAINTENANCE AND REPAIR, PAINTING, UM, PLUMBERS AND ELECTRICIANS. SO GOODS AND SERVICES IS KIND OF THE, THE FIRST CATEGORY. AND THEN, UH, WE JUST WENT THROUGH THE, THE THRESHOLDS ON THOSE. BUT THEN THE NEXT CATEGORY IS PROFESSIONAL SERVICES. THE CURRENT CITY CODE HAS A SECTION ON PROFESSIONAL SERVICES, AND IT'S PRETTY NARROW. IT'S DEFINED AS PHYSICIANS, ATTORNEYS, ENGINEERS, ARCHITECTS, AND SIMILAR PROFESSIONS. THERE IS NO STATUTORY DEFINITION THAT THE CITIES ARE REQUIRED TO USE FOR PROFESSIONAL SERVICES, BUT WE HAVE NOT ONE, BUT TWO, NOT THREE OPTIONS OR FOUR, IF YOU LOOK AT OUR EXISTING ONES. SO STATE AGENCIES HAVE A DEFINITION FOR PROFESSIONAL SERVICES. COUNTIES ARE SUPPOSED TO ADOPT THEIR OWN DEFINITION OF PROFESSIONAL SERVICES. THE COURTS HAVE OPINED FOR THE COUNTIES WHAT THEY FEEL THAT PROFESSIONAL SERVICES ARE, AND THAT'S WHERE A, A LOT OF THE, THE CITY'S, UM, PURCHASES ARE, ARE DONE. WE CONSULTANTS, THEY COME AND PRESENT TO COUNCIL ON A REGULAR BASIS. AND THOSE ARE PROFESSIONALS, PROFESSIONAL SERVICES. AND SO LET ME, UH, FLIP TO THE DEFINITION AND THEN I'LL COME BACK TO THIS SLIDE. SO, SO THIS IS THE PROPOSED DEFINITION FOR PROFESSIONAL SERVICES, UM, SERVICES RENDERED BY A PERSON ENGAGING IN A RECOGNIZED THAT REQUIRES ADVANCED TRAINING AND SPECIALIZED KNOWLEDGE TO PERFORM. AND THAT, THAT'S HOW, THAT'S HOW THE COURTS HAVE DEFINED, UH, PROFESSIONAL SERVICES. AND THEN WE GIVE SOME DEFINITIONS, UH, FINANCIAL SERVICES, CONSULTING SERVICES, PUBLIC RELATIONS AND MARKETING SERVICES. BUT BECAUSE OF THIS, UH, TYPE OF PROFESSIONAL SERVICE, WHAT, WHAT WE'RE PROPOSING IN THESE CITY CODE PROVISIONS IS THAT LESS THAN $150,000 MAY BE DIRECTLY, UH, SELECTED. GREATER THAN 150,000 WOULD REQUIRE A FORMAL SOLICITATION. AND I'D LIKE IAN TO MAYBE TO TALK A LITTLE BIT ABOUT THE PROFESSIONAL SERVICES HE'S SEEN THAT'S COME ACROSS, UH, HIS DESK. AND I, I HAVE SEEN SOME SOLICITATIONS LESS THAN A HUNDRED THOUSAND FOR PROFESSIONAL SERVICES. YEAH. SO I GUESS TO START OUT, I, I WOULD SAY THAT I VERY MUCH AGREE WITH THE COURT CASES THAT WE'VE READ THROUGH. UM, AS FAR AS THE DEFINITION OF PROFESSIONAL SERVICES, IT'S QUITE CONSISTENT ACROSS THE COUNTRY. UM, TYPICALLY, UH, YOU KNOW, BUSINESS CONSULTANTS, EXPERTS, EFFICIENCY EXPERTS, THINGS LIKE THAT, UM, ARE INCLUDED IN THAT. TYPICALLY THE NATURE OF THE BUSINESS THAT THEY'RE IN DOES, UM, MAKE, UH, APPLES TO APPLES COMPARISON SOMEWHAT DIFFICULT. UM, AND IT GOES TO THAT QUALIFICATION BASED, UH, SELECTION PROCESS. TO MONIQUE'S POINT, WE HAVE GONE THROUGH RFP AND RFQ PROCESSES FOR, UH, CONSULTING SERVICES UNDER A HUNDRED THOUSAND WHERE WE POTENTIALLY WERE STRUGGLING TO FIND A, A, A QUALIFIED FIRM OR SOMETHING LIKE THAT. SO, UM, WE DO GO THROUGH THOSE. UM, [00:55:01] THE OTHER THING I WOULD POINT OUT IS OUR CURRENT CITY CODE DOES PROVIDE A TOTAL EXEMPTION FOR ANY TYPE OF COMPETITIVE PROCESS RELATED TO PROFESSIONAL SERVICES. SO THIS WOULD ACTUALLY ESTABLISH ONE AT $150,000. UH, SO THEN THE NEXT, HOLD ON. DID YOU HAVE A QUESTION, COUNSELOR? FOLTZ? YES. I, I MEAN, I'M STILL SCRATCHING MY HEAD ABOUT $150,000 PROFESSIONAL SERVICES AGREEMENT WITH NO REQUIREMENT FOR, UH, GETTING THREE QUOTES AS A FOR INSTANCE. I MEAN, I, I'M NOT TRYING TO BE COMBATIVE, BUT I FEEL LIKE ALL I JUST HEARD WAS, WELL, IT CAN BE HARD SOMETIMES. LIKE THAT'S NOT, THAT'S NOT ENOUGH REASON TO NOT MAKE SURE THAT WE'RE GETTING A COMPETITIVE OFFERING FROM WHOEVER WE'RE SPENDING UP TO 150,000 WITH. SO, UM, MAYBE, MAYBE THAT'S MY FAULT FOR NOT CHARACTERIZING PROFESSIONAL SERVICES, UM, OR ARTICULATING THAT AS WELL AS POSSIBLE. UM, YOU KNOW, AGAIN, A LOT OF TIMES WE'LL HAVE A SPECIFIC PROBLEM AND THERE IS, UM, YOU KNOW, ONLY A SMALL NUMBER OF FIRMS WHO ARE, ARE READY TO DO THAT. IF THE PROPOSAL IS THAT WE GO THROUGH AN INFORMAL, UH, PROCESS SIMILAR TO THE GOODS AND SERVICES SECTION UNDER 150,000, WHERE WE JUST GET QUOTES, UM, YOU KNOW, I WOULD QUESTION WHETHER OR NOT THAT THAT'S BEING CONDUCTED IN AS FAIR A MANNER AS IT COULD BE DONE WITH, UH, LESS INTELLECTUAL SERVICES THAT ARE PROVIDED. LIKE, FOR EXAMPLE, IF I WANT, UM, YOU KNOW, A TREE INSTALLED IN, IN A SPECIFIC CITY PROPERTY OF A SPECIFIC SIZE TO A SPECIFIC DEPTH, I CAN SCOPE THAT OUT. CHANCES ARE I'M GONNA PICK THE LOWEST QUOTE. BUT IF SOMEBODY IS NEW TO THE, TO THE GAME, I COULD POTENTIALLY SAY THAT THERE'S VALUE TO GO WITH THIS MORE EXPERIENCED, UH, COMPANY. WHEN WE LOOK AT ANALYZING THE CITY'S BUSINESS PROCESSES AND MAKING RECOMMENDATIONS, POTENTIALLY THAT BECOMES MUCH MORE DIFFICULT TO, FOR, FOR THE DEPARTMENTS TO INFORMALLY REVIEW QUOTES AND TRY TO UNDERSTAND AT THAT INFORMAL COM COMPETITIVE, UH, LEVEL, UM, WHETHER OR NOT THEY ARE TRULY PICKING THE MOST QUALIFIED OR FIRM OR JUST GOING WITH A LOW DOLLAR AMOUNT. SO THAT'S LARGELY WHY CITIES AND COUNTIES ACROSS THE COUNTRY HAVE AN EXEMPTION FOR PROFESSIONAL SERVICES. UM, AND, AND YOU KNOW, WE'RE, WE'RE MIRRORING THAT. I MEAN, I'M STILL STRUGGLING WITH IT. LIKE THERE'S A SENSITIVITY, FOR INSTANCE, THAT KIMLEY HORNE CONTINUES TO GET CONTRACT AFTER CONTRACT AFTER CONTRACT. AND I UNDERSTAND THAT THEY MAY WELL BE THE MOST QUALIFIED, LIKE I I I'M NOT HATING ON THEM, OKAY, BUT IT, IT COMES UP REGULARLY THAT, YOU KNOW, DON'T WE HAVE ALTERNATIVES? SO, UM, IT JUST SEEMS LIKE IT CAN BE AWFULLY CONVENIENT. THEN I'M JUST GONNA CALL UP KIMLEY HORN WITH THAT SPECIFIC EXAMPLE. THE CITY, YOU KNOW, HAS, UH, AS YOU'RE AWARE, RECENTLY GONE THROUGH A FORMAL PROCESS TO SELECT, UM, 27 DIFFERENT OR TO ESTABLISH 27 DIFFERENT CONTRACTS WITH LARGELY DIFFERENT FIRMS TO PROVIDE SERVICES. UM, DOES, YOU KNOW, AGAIN, THESE, THESE PURCHASES HAVE TO GO THROUGH THE CITY MANAGER'S OFFICE OR THE CITY DE UH, THE DEPARTMENT DIRECTOR AND ADDITIONALLY THE PROCUREMENT OFFICER, UM, THE INTENT OF THE AUTHORITY, UH, FOR SIGNATURE IS THAT THESE ARE BEING REVIEWED AND, AND WE'RE NOT JUST SELECTING FAVORITES OR, OR SOMETHING LIKE THAT. I DON'T THINK CITY STAFF WOULD WOULD DO THAT. UM, BUT THERE ARE SAFEGUARDS IN, IN, IN PLACE FOR THAT. AND, UM, YOU KNOW, OVERALL PROCUREMENT IN THE CITY, UH, WOULD, WOULD FOLLOW BEST PRACTICES STILL, BUT IT DOESN'T READ THAT WAY. WHEN I READ THIS, WHETHER IT'S IN THE PACKET OR THE POWERPOINT, IT JUST SIMPLY SAYS PROFESSIONAL SERVICES ARE 150 K CAN BE DIRECTLY SELECTED, AND THEN YOU'RE GONNA BE TALKING ABOUT CONSTRUCTION PROFESSIONAL SERVICES AT 500 K CAN JUST BE DIRECTLY SELECTED. I DON'T READ ANYWHERE IN THERE THAT THERE ARE SAFEGUARDS. SO YOU SAYING THAT THEY ARE WHAT, HOW PROVE IT. UM, I MEAN, AM I THE ONLY ONE THAT HAS ANY CONCERN ABOUT THIS OR AM I JUST BARKING UP A TREE HERE? NO, I MEAN, I, I UNDERSTAND I, I SHARED HAD THE CONCERN, BUT I MEAN, I UNDERSTAND THAT IT IS DIFFICULT SOMETIMES TO GET THE MULTIPLE BIDS, BUT COULD THE, INSTEAD OF GETTING A FORMAL WRITTEN DOCUMENTATION, COULDN'T THERE BE AN INTERNAL CONTROL THAT SHOWS THAT THERE WERE DISCUSSIONS THAT ARE DOCUMENTED AND THAT WERE VERBAL QUOTES WERE OBTAINED OR SOMETHING [01:00:01] JUST, JUST TO THAT THRESHOLD THAT THERE WAS A REVIEW AND THERE WAS SOME SORT OF, I, I THINK THAT'S, UH, DOES THAT ADDRESS YOUR CONCERN? BECAUSE IT'S PART, THAT'S PART OF WHAT I'M CONCERNED ABOUT. KATHY, ARE YOU TALKING ABOUT LIKE AN A SECOND SET OF EYES ON IT? NO, I'M TALKING ABOUT SOMETHING THAT SAYS I AM EMPLOYEE A, I AM TASKED WITH FINDING SOMEBODY TO PUT THAT TREE IN THE GROUND. IT DOESN'T RISE TO THE THRESHOLD OF A FORMAL WRITTEN BID BASED ON YOUR DOLLAR AMOUNTS, BUT I STILL WANT SOMETHING AT CERTAIN DOLLAR AMOUNTS THAT SAYS, YEAH, I AT LEAST SPOKE TO THREE VENDORS, YOU KNOW, AND I I CROSSED THIS ONE OFF THE LIST BECAUSE THEY NEVER PUT A TREE IN THE GROUND BEFORE, OR I CROSSED THIS ONE OFF THE LIST BECAUSE THEY WERE WHAT, YOU KNOW, THEY WERE THAT MUCH HIGHER. I MEAN SOMETHING WITHOUT GOING THROUGH, GETTING FORMAL BIDS FROM THEM, BUT SOMETHING THAT DOCUMENTS INTERNALLY THAT WE HAVE THAT KNOW THAT WHEN AN AUDITOR OR SOMEONE FOR THE PUBLIC UNDER A FOIL REQUEST, OR JUST US BECAUSE WE'RE GOT EYES ON IT, CAN GO TO AND, AND LOOK AT IT AND KNOW WHAT THE PROCESS WAS BY WHICH SOMETHING WAS CHOSEN. COUNCILOR KINSELLA, I APPRECIATE WHAT YOU'RE ARTICULATING AND MAYBE IT'S THE CHOICE OF EXAMPLE, BUT THE BUY A TREE AND PLANT THE TREE THAT, THAT'S UNDER GOODS AND SERVICES. AND THAT'S NOT WHERE I'M OBJECTING AT THE MOMENT. SO ANYBODY ELSE CONCERNED ABOUT THIS? OR IS IT JUST ME? 'CAUSE LIKE I DON'T WANNA WASTE A BUNCH OF TIME HERE, MELISSA. IT'S SO WHEN I, I HEAR WHAT YOU'RE SAYING FOR SURE. MY QUESTION IS WHETHER OR NOT THIS IS AGAIN, THE DIFFERENCE BETWEEN THE PROCUREMENT MANUAL POLICIES AND THIS LEVEL, AND IF WHAT WE'RE SAYING IS IT'S NOT REALLY AT THIS LEVEL, THE CODE LEVEL, IT'S REALLY AT THAT PROCUREMENT MANUAL. I HAVE SEEN, UM, STATEMENTS IN OTHER PARTS OF THE CODE THAT TALKS ABOUT PURSUANT TO THE PROCUREMENT MANUAL WITHOUT OBTAINING THREE WRITTEN PRICE QUOTES, FOR INSTANCE. SO THAT SEEMS LIKE THAT MIGHT BE THE DIFFERENCE HERE IS, IS THERE, IS THERE SOME WAY FOR US TO SAY IT SHOULD BE IN THE PROCUREMENT MANUAL? AND WHAT WE WANT TO SEE HERE IS SOMETHING THAT REFLECTS IT'S IN THE PROCUREMENT MANUAL THAT THEY'RE GOING TO FOLLOW A MORE FORMAL PROCESS. SO I'M JUST THROWING THAT BACK OUT TO YOU. YEAH, SO, AND, AND AGAIN, THIS IS, UH, AN EXEMPTION THAT'S PRE, UH, PERVASIVE ACROSS THE COUNTRY. AND SO TYPICALLY WHEN THERE IS A SELECTION OF A PROFESSIONAL, UH, SERVICE PROVIDER, UM, THAT DOESN'T GO THROUGH A VERY FORMAL SOLICITATION PROCESS, THERE IS A JUSTIFICATION MEMO OR SOMETHING OF THE, LIKE THAT IS SENT TO THE PROCUREMENT OFFICER IN ORDER TO JUSTIFY THAT SELECTION, UM, AT WHICH THEY TYPICALLY HAVE A DISCRETION AS TO WHETHER OR NOT TO APPROVE THAT SELECTION BASED ON THE INFORMATION PROVIDED BY THE, UH, REQUESTING DEPARTMENT. SO TO, TO YOUR, UH, POINT, UH, COUNSELOR DUNN, YES. UH, OUR, OUR INTENT IS TO TIGHTEN THAT PROCESS INTERNALLY SO THAT WE HAVE JUSTIFICATION TO PROVIDE TO THE PUBLIC AND TO THE COUNCIL IF IT'S REQUIRED. UM, BUT YOU KNOW, AGAIN, UH, I THINK THIS IS A QUESTION OF, YOU KNOW, WHETHER OR NOT WE'RE SOLICITING QUALIFICATIONS BASED PROPOSALS FROM PROFESSIONAL SERVICES PROVIDERS AND HAVING DEPARTMENTS GO THROUGH, UH, WHAT WOULD BE A RATHER LENGTHY QUALIFICATIONS, UH, EVALUATION RATHER THAN MAYBE MORE EASILY LOOKING AT PRICE BASED ON A SPECIFIED PROJECT. AND THAT'S WHY IT'S USUALLY APPROACHED THAT WAY. WE DO PLAN TO IMPLEMENT THOSE TYPES OF, UH, PROCESSES THAT ARE STANDARD IN PROCUREMENT POLICIES. SO AGAIN, JUST TO BE CLEAR, I WAS ARGUING IN YOUR FAVOR THAT IF, IF THIS DOCUMENT THAT WE'RE LOOKING AT, WHICH IS THE CODE, JUST BASICALLY REFERENCES PURSUANT TO THE PROCUREMENT MANUAL, WHATEVER'S IN THE MANUAL, THAT'S A DIFFERENT ISSUE. BUT IT'S TO SAY IT'S NOT JUST SOMETHING THAT'S FREEFORM AND YOU KNOW, WHATEVER'S IN THE CODE. THAT'S REALLY THE ONLY THING THAT GOES, I THINK THAT THAT MIGHT BE WHERE THERE'S A PROBLEM TO SAY THAT IT'S ACTUALLY, THERE'S SOME MORE DETAIL HERE ABOUT HOW THIS PROCESS HAPPENS, AND THAT'S INSIDE OF THIS PROCUREMENT MANUAL OR WHATEVER YOU WANNA CALL IT. THAT, THAT'S ALL I WAS REALLY ARGUING. AND I HAVE A CLARIFYING QUESTION FOR, FOR YOU, IAN. I, I KNOW THAT YOU DON'T HAVE DATA ON THIS, BUT IN MY OWN EXPERIENCE, I SEE A LOT OF PROFESSIONAL SERVICES AGREEMENT. IT'S NOT A, A ONE AND DONE, DO SURVEY, WRITE A REPORT. IT'S A, UH, 2, 3, 4 YEAR CONTRACT. DO YOU, DO YOU HAVE ANY FEELING ON PROFESSIONAL SERVICES? HOW, HOW MANY OF THEM WOULD BE LIKE A THREE YEAR CONTRACT THAT WOULD BE SUBJECT TO WHAT WE'RE PROPOSING FOR THE $150,000 THRESHOLD? SO, JUST FOR CLARIFICATION, DO YOU MEAN HOW, HOW DO WE SEE, LIKE, STRUCTURING CONTRACTS FOR PROFESSIONAL [01:05:01] SERVICES, RIGHT? BECAUSE IT IS ONE THING TO, YOU KNOW, WRITE $149,000 CONTRACT FOR JUST A ONE TIME THING. BUT IF IT'S A, YOU KNOW, A 2, 3, 4, 5 YEAR CONTRACT, WHAT HAVE YOU BEEN SEEING FOR PROFESSIONAL SERVICES OF THE MIX OF A A, YOU KNOW, MULTI-YEAR VERSUS JUST A SINGLE, UH, PROJECT? TYPICALLY THE CITY HAS BEEN CONTRACTING, UM, MULTI-YEAR, UH, CONTRACTS OR, OR, UH, LARGER DOLLAR AMOUNTS, FOR EXAMPLE, UM, CONSULTANTS WHO'VE COME INTO TO, TO REVIEW, UH, THE, UH, DIFFERENT PROJECTS THAT THE CITY HAS UNDER PLANNING PHASES OR SOMETHING LIKE THAT. WE'VE DONE. SO, I MEAN, AS WE, SINCE THIS IS JUST OUR FIRST READ IS, UM, YOU KNOW, YOU THINK ABOUT HOW YOU WANT, WANT THIS STRUCTURED, UM, IT COULD BE STRUCTURED DIFFERENTLY FOR, YOU KNOW, MULTI-YEAR, UM, COMING UP UNDER EXCEPTIONS WE'RE PROPOSING A COMPETITION IMPRACTICABLE THAT COULD, UH, BE USED FOR THOSE, THOSE REALLY DIFFICULT TO FIND PROFESSIONAL SERVICES, UH, CONTRACTORS. SO THESE ARE JUST SOME THINGS I WANNA THROW OUT AS YOU JUST, YOU KNOW, THINK ABOUT THIS. UH, ANDY, I'M SORRY. GO AHEAD. I WOULD PROVIDE A, A COUPLE OF CLARIFICATIONS ON MY END. HAVING BEEN, UH, A DIRECTOR FOR ALMOST 10 YEARS, I CAN TELL YOU THAT ONE OF THE CHECKS AND BALANCES THAT OCCURS IS WITH THE DEPARTMENT HEAD. SO, AND WITH THE CITY MANAGER, ALTHOUGH A, YOU KNOW, COMPARISON OF QUALIFICATIONS MAY NOT BE REQUIRED IN A DIRECT SELECTION, THERE IS CERTAINLY SCRUTINY THAT'S PUT INTO SELECTION. I THINK WE'VE TALKED RECENTLY ABOUT CERTAIN, UH, WE, WE MENTIONED EARLIER, A CERTAIN CONSULTANT THAT WE'RE TRYING TO NOT NECESSARILY SELECT. WELL, THAT'S, THAT'S A CASE WHERE WE MIGHT GO OUT FOR SOLICITATION TO GET OTHER CONSULTANTS ON BOARD, EVEN THOUGH WE DON'T, WE MIGHT BY CODE OR BY LAW MIGHT, MIGHT NOT HAVE TO. WE, WE HAVE DONE THAT BEFORE. AND, UM, DEFINITELY AT THE DEPARTMENT HEAD LEVEL, WE'RE, WE'RE LOOKING AT SELECTIONS VERY CAREFULLY. AND, UM, THERE HAS BEEN TALK ABOUT, YOU KNOW, SPREADING THE WORK AROUND IN CERTAIN SITUATIONS AND THINGS LIKE THAT. I CAN ALSO SAY THAT, AND, AND WHAT, WHAT WAS MENTIONED EARLIER ABOUT THAT BEING HANDLED, HANDLED THROUGH THE PROCUREMENT, UM, POLICY, I THINK IS SPOT ON. THAT MAKES A LOT OF SENSE. BUT I WOULD ALSO OFFER ANOTHER PERSPECTIVE FROM MY PAST EXPERIENCE AS A CONSULTANT, THAT WHEN YOU REQUIRE SOLICIT, UH, SOLICITATION LIKE THIS, IT'S AUTOMATICALLY REQUIRING A, A PRETTY LARGE EXPENDITURE ON THE PART OF THOSE CONSULTANTS THAT MAKE THE SOLICITATION THAT COST IS NOT ALWAYS WORTHWHILE, AND IT'S GONNA COME BACK TO THE CITY IN INCREASED COSTS OF FUTURE CONTRACTS AND ONGOING WORK THAT WE DO WITH THESE CONSULTANTS. I, I CAN TELL YOU THAT THE LEVEL OF SCRUTINY IS, IS AT A HEALTHY LEVEL, ESPECIALLY SINCE IAN AND MONIQUE COMING ON BOARD WITH THE, WITH THE CITY. UM, BUT IT'S, IT'S IN PLACE AT THE DEPARTMENT HEAD LEVEL. IT IS HANDLED BY THE PRE, UH, PROCUREMENT POLICY. AND I WOULD REALLY HESITATE TO MAKE THIS SORT OF REQUIREMENT JUST BECAUSE IT STARTS TO INFLATE COSTS MORE AND MORE. I'M NOT NECESSARILY ASKING FOR THAT. I'M JUST ASKING FOR CLARIFICATION THAT THIS IS NOT A RUNAWAY TRAIN AND THAT THERE ARE SOME CONTROLS ON IT. AND MAYBE IT'S JUST A CASE OF, I MEAN, I'M NOT A PROCUREMENT OFFICER, IT'S NOT MY THING AND I DON'T SPEND TIME IN THIS. AND IF ALL I READ HERE IS A BULLET THAT SAYS, YOU KNOW, UNDER, UNDER 150 K, I CAN GO CHOOSE WHOEVER I WANT, YOU KNOW, FROM AN AUDITOR'S PERSPECTIVE, YOU KNOW, UM, TELL ME MORE ABOUT THAT. AND THAT'S WHAT YOU'RE GETTING RIGHT NOW IS, IS TELL ME MORE ABOUT THAT. OKAY. SO I'M, I'M GOOD. THANK YOU, MAYOR PETE. THANK YOU, MAYOR. UH, I'LL TAKE, UH, A SMALL BITE AT COUNCILLOR FO'S QUESTION, AND I, I MUST ADMIT WHEN I READ THROUGH THIS, THE 500,000 CONSTRUCTION PROFESSIONAL SERVICES JUST STOOD OUT TO ME BECAUSE IT'S JUST A DIFFERENT NUMBER THAN EVERYTHING ELSE IN THE POLICY. AND I'M STILL SCRATCHING MY HEAD A LITTLE BIT TO UNDERSTAND WHY THAT NUMBER IS SO SIGNIFICANTLY AHEAD OF ALL THE REST OF THE NUMBERS. SURE. UM, SO THE $500,000 THRESHOLD FOR CONSTRUCTION PROFESSIONAL SERVICES COMES FROM TITLE 34 OF THE ARIZONA REVISED STATUTES. AND IT ESTABLISHES [01:10:01] A THRESHOLD IN WHICH, UM, STATE AND MUNICIPAL AGENCIES ARE REQUIRED TO GO THROUGH A FORMAL SOLICITATION PROCESS. AND IT PROVIDES, UH, MULTIPLE, UM, I GUESS, UH, DIFFERENT TYPES OF SOLICITATION PROCESSES A CITY COULD GO THROUGH. HOWEVER, THOSE ARE ALL, UH, QUALIFICATION BASED SELECTION PROCESSES, JUST, UH, DIFFERENT CONTRACTING END RESULTS OR DIFFERENT METHODOLOGIES TO ARRIVE AT THAT. AND SO THAT'S WHERE THAT THRESHOLD COMES IN. IS, UH, MONIQUE BRINGING IN STATE LAW AND, AND PUTTING IT INTO OUR CITY CODE AND MAKING SURE THAT IT IS APPARENT THAT WE'RE FOLLOWING THE, THE, THE STATE LAW THAT'S APPLICABLE. THAT'S FOR THEM. THAT'S NOT REQUIRED OF US THOUGH, IS THAT CORRECT? IT IS, UH, CONSTRUCTION, UM, TITLE 34 CONSTRUCTION IS THE ONLY AREA WHERE THE LEGISLATURE HAS PLACED REQUIREMENTS ON CITIES FOR CONSTRUCTION PROFESSIONAL SERVICES AND FOR CONSTRUCTION PROJECTS. SO HOW THE STATE DEFINES CONSTRUCTION PROFESSIONAL SERVICES, UH, IT'S, UH, THE A E FIRMS, THE ENGINEER SERVICES, LANDSCAPE ARCHITECT SERVICES, THE, THE MSAS THAT, UM, YOU KNOW, CAME TO YOU A COUPLE WEEKS AGO WERE CONSTRUCTION PROFESSIONAL SERVICES. AND THE STATE HAS BEEN AT $500,000 ON, ON THAT FOR, FOR QUITE SOME TIME. SO THIS IS EXACTLY WHAT THE STATE, UH, REQUIRES, UH, OF CITIES. UM, IF IT'S 500,000 OR MORE, A FORMAL SOLICITATION PURSUANT TO ALL THE NOTICE REQUIREMENTS AND ALL THE OTHER REQUIREMENTS FOR TITLE 34 KICK IN. BUT IF IT'S LESS THAN $500,000, THE, THE STATE IN THEIR STATUTES GIVES THE CITY'S, UM, OPTIONS CAN BE DIRECTLY SELECTED, SELECTED WITH A NON-TITLE 34 SOLICITATION, OR WITH A TITLE 34 SOLICITATION. THAT'S NOT TO SAY THAT WE CAN'T MAKE IT MORE STRINGENT, BUT THAT'S, UH, THAT'S, UH, THE GUARDRAILS THAT THE STATE HAS SET UP FOR OUR CONSTRUCTION PROFESSIONAL SERVICES. IT'S A CITY THAT, THAT MAKES SENSE TO ME. AND I JUST THINK ABOUT WHEN THE STATE DOES THINGS, IT'S OFTEN IN WAY BIGGER CHUNKS THAN WE DO IT. AND SO THAT 500,000 TO WHAT THE STATE NORMALLY DOES, YOU KNOW, MIGHT BE A DIFFERENT RATIO OF WHAT WE DO AT $500,000 ON A, A NORMAL BASIS. UH, I I COULD LOOK TO SEE IF YOU'RE, UH, INTERESTED WHEN THE STATE RAISED THAT. UH, AT ONE POINT I THOUGHT, WELL, IT'LL BE INTERESTING TO SEE HOW MANY TITLE 34 REVISIONS THE STATE HAS DONE. OH, SINCE 1990, THERE'S BEEN OVER 65. SO MY SUMMARY IS LIKE, I DON'T HAVE TIME FOR THAT. THEY'VE DONE, UH, 14 REVISIONS, UM, SINCE WE LAST REVISED OUR CITY CODE. UH, SO I DON'T KNOW AT WHAT POINT THE STATE REVISED IT ALL THE WAY TO 500,000, BUT THAT THAT DOES, THAT'S NOT IN LINE WITH THE A HUNDRED THOUSAND FOR THE COUNTIES AND THE STATES ON EVERYTHING ELSE. UH, THERE, THERE'S A DISCONNECT. ON THE OTHER HAND, THIS THING STILL DOES PLAY WITH, UH, OVER $150,000 THAT'S GOTTA COME TO COUNCIL. ABSOLUTELY, KATHY, AND THEN WE'LL MOVE ON. OKAY. BUT, OKAY. I THINK PART OF THE WORDING THAT'S UNCLEAR FOR ME IS UNDER THE, THE DEPARTMENT HEAD OF THEIR DESIGNEE MAY DIRECT SELECT THE CON CONSULTANT OR CONTRACTOR USING REASONABLE JUDGMENT IN THE SELECTION. REASONABLE JUDGMENT IS, IS, UH, NOT DEFINED IN ONE OF YOUR DEFINITIONS. AND I DON'T KNOW IF IT, IF IT WENT BACK TO SAYING SOMETHING LIKE USING POLICIES IN THE PROCUREMENT MANUAL OR SOMETHING THAT, THAT WOULD GIVE ME MORE, I DON'T KNOW WHAT THE RIGHT WORD IS, A CONFIDENCE THAT, YOU KNOW, THAT THERE'S A STRUCTURE IN PLACE FOR AN EVALUATION. THIS JUST REASONABLE JUDGMENT. WELL, OBVIOUSLY COUNCIL MEMBER FO'S REASONABLE JUDGMENT IS VERY DIFFERENT MAYBE FROM MY REASONABLE JUDGMENT. UM, SO I , I'M, I'M JUST, I'M, I'M JUST, I GUESS THAT WORDING IS NOT GIVING ME A LOT. I'M NOT COMFORTABLE WITH IT. WE HAVE SOME, UM, YOU KNOW, BROAD REQUIREMENTS AT THE BEGINNING OF THIS, UH, CHAPTER THAT ALL PURCHASES USING, UM, CITY FUNDS, UM, SHALL COMPLY WITH THE CITY CODE AND THE, UH, PROCUREMENT MANUAL. SO, SO THEY ARE REQUIRED FOR THE DEPARTMENTS FOR ALL PURCHASES TO REQUIRE, UH, COMPLY WITH THE PROCUREMENT MANUAL. BUT WE COULD THROW THAT IN MORE. MORE, YEAH, THAT'S WHAT I WAS GONNA SAY. SO IT WAS ORIGINALLY, I DID HAVE IT IN EVERYWHERE AND I THOUGHT, WELL THAT'S, THAT'S PRETTY REDUNDANT. I'LL JUST PUT IT WAY UP HERE. I'M GONNA PUT IT BACK EVERYWHERE. YEAH. OR AT LEAST, AT LEAST THERE. 'CAUSE YOU THAT'S A BIG NUMBER. SO . ALRIGHT. OKAY. THANK YOU. CAN WE MOVE ON? OKAY, GO AHEAD, IAN. OKAY. UM, FOR CONSTRUCTION, THAT, THAT AGAIN IS A DEFINED TERM BY THIS, THE STATE IN TITLE 34 THAT WE'RE SUBJECT TO, YOU KNOW, IT'S PRETTY BROAD, YOU KNOW, BUILDING, REPAIRING, ALTERING, DEMOLISHING IMPROVEMENT. UM, SO WE PUBLIC WORKS, THEY KNOW THIS DEFINITION, THEY PROBABLY HAVE IT MEMORIZED. UH, THIS IS, WAIT A SECOND. DID I SKIP AHEAD? OKAY, HERE WE GO. SO THIS IS AN AREA WHERE OUR PROPOSED REVISIONS THAT WE'RE RECOMMENDING TO COUNCIL IT, IT IS MORE STRINGENT THAN WHAT THE STATE CURRENTLY REQUIRES. SO RIGHT NOW, THI THIS IS JUST CRAZY. SO RIGHT NOW, WHENEVER THERE'S A CONSTRUCTION PROJECT, [01:15:01] IAN AND I, WE HAVE TO GET OUT OUR EXCEL SPREADSHEET THAT THE LEAGUE UPDATES EVERY YEAR. OH, WHAT'S THE, THE THRESHOLD FOR BIDDING ON THIS TYPE OF PROJECT? IT DATES BACK TO 1995 AND THE LEAGUE EVERY YEAR HAS TO UPDATE IT USING, UH, AN INFLATION FACTOR. AND IT DEPENDS ON THE TYPE OF PROJECT. AND THERE'S FOUR DIFFERENT CATEGORIES. SO I WAS NOT GONNA EVEN TRY TO PUT THAT IN THE CITY CODE. SO INSTEAD WE JUST WROTE IN THE CITY CODE THAT ANY CONSTRUCTION PROJECT OF ANY AMOUNT REQUIRES REVIEW OF TITLE 34, UH, THE BIDDING THRESHOLD. 'CAUSE IT CHANGES EVERY YEAR. UM, AND THIS IS, AND, AND IF, IF IT'S REQUIRED TO GO FORTH WITH A PROFE WITH A FORMAL SOLICITATION, THAT'S WHAT THE CITY WILL DO. BUT FOR THOSE PROJECTS THAT AREN'T REQUIRED TO GO FORTH WITH A FORMAL SOLICITATION, INSTEAD OF SAYING, OKAY, DEPARTMENT HEADS CAN DIRECT SELECT WHAT WE ARE PROPOSING, UM, TO COUNCIL IS THAT, TO GO BACK TO THE GOODS AND SERVICES THAT IF IT'S, UM, LESS THAN 25,000, JUST USE REASONABLE JUDGMENT. IF IT'S BETWEEN 25,000 AND 150,000, OBTAIN THREE PRICE QUOTES AND THEN ISSUE A FORMAL CITY SOLICITATION. IF IT'S 150 OR MORE, THAT SEEMS CONSISTENT WITH THE CURRENT PRACTICES OF THE CITY. IT'S MORE STRINGENT THAN WHAT THE STATE HAS REQUIRED OF US. SO THAT IS AN AREA WHERE WE, WE HAVE, UH, WE'RE RE RECOMMENDING TO BE MORE STRINGENT BASED ON OUR CURRENT PRACTICES. SO WE CAN SPEND MORE ON THE SERVICES, BE WORK BEFORE THE CONSTRUCTION PROJECT THAN WE CAN ON THIS. CORRECT. THE, UM, AND I, AND I THINK THAT, UH, THERE ARE ARE MORE CONSTRUCTION COMPANIES OUT THERE THAN THERE ARE THE PROFESSIONAL SERVICES THAT WE DEAL WITH. UM, YOU KNOW, IS ONE WAY TO, TO LOOK AT IT. UM, BUT THE, THE BIDDING THRESHOLDS, THEY RANGE FROM, UH, SOMETHING LIKE ABOUT 18,000 TO LIKE 260,000. SO THE BIDDING THRESHOLDS ARE, ARE LOWER THAN THE 500,000 TO BEGIN WITH. DID YOU HAVE ANYTHING TO, TO COMMENT ON OUR, UH, PROPOSED, UH, REVISIONS TO BE MORE STRINGENT THAN THE STATE FOR THE CONSTRUCTION PROJECTS? NO, I WOULD JUST SAY THAT THEY'RE IN, THEY'RE IN LINE WITH WHAT IS COMMONLY PRACTICED FOR. UH, IF, IF THERE'S NOT A STATE STATUTE FOR, UH, THAT APPLIES TO CONSTRUCTION, YOU GO THROUGH THE BIDDING PROCESS, THERE ARE A LOT OF CONTRACTORS THAT CAN PROVIDE THOSE SERVICES. IT'S A FAIRLY STRAIGHTFORWARD BIDDING PROCESS, UH, WHERE THE LOWEST RESPONSIBLE BIDDER IS AWARDED THE CONTRACT. UM, THERE'S NOT ANY, UH, ADDITIONAL FACTORS THAT HAVE TO BE EVALUATED, UM, BY A PROFESSIONAL PANEL OF, UH, A REVIEW COMMITTEE. OKAY. UM, UH, CONTRACT AMENDMENTS, UM, CHANGE ORDERS. UH, CURRENTLY THE CITY MANAGER, UM, IN THE EXISTING CITY CODE CAN APPROVE, UM, UH, CHANGE ORDERS, AMENDMENTS, UH, AN CUMULATIVE AMOUNT OF 10% OF THE ORIGINAL CONTRACT COST. UH, RIGHT NOW IT'S, OR 75,000 AND THAT'S FOR, UH, CONTRACTS THAT COUNCIL HAS ALREADY APPROVED. UH, WE'RE PROPOSING, UM, TO INCREASE THAT TO, UH, A HUNDRED THOUSAND OR THE 10%, WHICHEVER IS GREATER. SO WE SEE A NUMBER OF, UM, REVISIONS THAT, THAT COME TO COUNCIL. BUT, BUT SOME OF THE CITY MANAGER, UH, HAS AUTHORITY TO SIGN OFF ON. RIGHT. SO IF I'M READING THAT RIGHT, LAST MEETING WE APPROVED A CHANGE ORDER CLOSE TO 400,000 ON THE GARAGE. AND SO THAT'S SAYING, WELL, NO, IT, THAT WOULDN'T UP TO 10%, BUT THAT WAS A 40% OF THE CONTIN. WELL THAT WASN'T 40% OF THE, BUT IT WOULD IT, WHERE WOULD IT HAVE FALLEN RELATIVE TO THIS? I'M, I IT WOULD'VE CAME TO COUNCIL. UM, WHAT, WHAT OFTEN WE SEE THAT ACCUMULATED AMOUNT IS, IS MORE KEY HERE. SO LIKE FOR THE GARAGE FOR INSTANCE, OR FORCE ROAD CONTRACT, REALLY WE STARTED NEEDING TO COME TO COUNCIL ONCE THAT THRESHOLD EXCEEDED THE 75 TH WELL THE 10%. AND, AND SO WE STARTED COMING TO COUNCIL FOR CHANGE ORDERS WELL BEFORE THAT LAST ONE THAT WE, THAT WE BROUGHT. SO THIS WOULD MOVE THAT THRESHOLD OUT A LITTLE BIT. UM OKAY, BUT A $10 MILLION PROJECT, THIS IS SAYING ANNETTE COULD SIGN OFF ON A MILLION DOLLARS. YEAH, EXACTLY. NO. YES. WHICHEVER IS GREATER COULD, THAT'S THE 10%. WE'RE NOT PROPOSING ANY REVISIONS TO THAT. CORRECT. UNLESS OF COURSE YOU WANT TO PROPOSE REVISIONS TO. SO JUST TO ADD SOME CLARIFICATION, THIS IS THE ORIGINAL LANGUAGE. THE ONLY THING INCREASING IS THE $25,000. [01:20:01] SO ANNETTE'S ALWAYS HAD THAT AUTHORITY, BUT AGAIN, THAT'S THE CUMULATIVE. SO IF THERE HAVE BEEN PREVIOUS CHANGE ORDERS, UM, SHE, YOU KNOW, SHE WOULD ONLY BE ABLE TO APPROVE UP TO THAT ACCUMULATIVE, SO UP TO A MILLION DOLLARS ON A $10 MILLION CONTRACT. BUT IF THERE'S BEEN A CHANGE ORDER PREVIOUSLY FOR A HUNDRED THOUSAND DOLLARS, THAT MILLION DOLLAR CHANGE ORDER WOULD HAVE TO COME BACK TO COUNSEL. BUT SHE'D STILL BE ABLE TO SIGN OFF ON A $900,000 CHANGE ORDER AT THAT POINT. YES. RIGHT. WELL, AND MAYOR AND COUNCIL, JUST TO BE CLEAR, THAT'S HAS TO, THERE HAS TO BE MONEY ALLOCATED FROM COUNCIL TOWARDS THAT BUDGET TO BEGIN WITH. SO THE ORIGINAL CONTRACT'S GONNA HAVE A CONTINGENCY AMOUNT THAT YOU'VE ALREADY APPROVED. SO IF IT'S A MILLION, IF IT'S A $10 MILLION CONTRACT, THERE'S PROBABLY ALREADY A MILLION DOLLAR CONTINGENCY TO ALLOW FOR THIS. SO IT'S NOT LIKE IT'S JUST THE CITY MANAGER. UH, BUT IF THERE WAS A ONE WORD CHANGE IN THIS INSTEAD OF WHICHEVER IS GREATER, IF IT WAS TO WHICHEVER, IS LESS WOULD GIVE SOME CONTROL OVER THAT AS WELL BECAUSE RIGHT. THE PERCENTAGES, THE GREATER THE CONTRACT, I MEAN THIS, THAT WOULD CAP IT. MEANING THAT ANYTHING OVER A HUNDRED THOUSAND DOLLARS WOULD HAVE TO COME IF IT WAS CHANGED TO WHICHEVER IS LESS RIGHT? THAT THAT'S RIGHT. I MEAN FOR THESE LARGE DOLLAR CONTRACTS, UH, THAT 10% CAN GET PRETTY HIGH FOR A SMALLER DOLLAR CONTRACT. YOU KNOW, THE A HUNDRED THOUSAND WOULD WOULD BE MORE, UM, THE 10%, UM, IT HAS BEEN THERE SINCE AT LEAST, UH, 2008. UM, I DON'T THINK THAT'S THE POINT. I MEAN THIS IS THE FIRST TIME WE'RE LOOKING AT IT AND WE'RE TESTING, I MEAN IN 2008 THERE, THERE WEREN'T THAT BIG A CONTRACT CONTRACTS IN SEDONA. RIGHT. THERE WEREN'T OTHER THAN THE WASTEWATER SYSTEM. RIGHT. OTHERWISE, THINGS LIKE FOREST ROAD AND THE PARKING GARAGE AND SOME OF OUR OTHER SIM PROJECTS, THOSE ARE ALL MODERN CONVENTIONS SINCE 2008. SO THE FACT THAT YOU'VE PUT THAT UP THERE AND YOU'RE SAYING, HEY, WE'RE NOT CHANGING, THAT'S NOT A PROPOSED CHANGE. GET THAT. BUT THAT'S STILL A BIG DARN DEAL, UH, TO SAY 10% WITHOUT OVERSIGHT. I THINK IT'S FAIRLY RARE. UM, I WAS JUST SITTING HERE TRYING TO THINK OF LIKE HOW MANY TIMES I'VE ACTUALLY SIGNED A CONTRACT CHANGE ORDER THAT DIDN'T GO TO THE CITY COUNCIL AND IT'S MAYBE LESS THAN FIVE AND NOTHING TO THE MAGNITUDE THAT YOU'RE TALKING ABOUT. 'CAUSE WE REALLY DON'T HAVE THAT MANY $10 MILLION CONTRACTS. UM, BUT, YOU KNOW, WHATEVER YOU'RE COMFORTABLE WITH. I HAVE A QUESTION 'CAUSE I HAVE A CONCERN ABOUT THIS TOO. WE HAVE THESE CHANGE ORDERS COME TO COUNCIL AND WE REVIEW THEM AND WE ASK QUESTIONS, WHY IS THERE CHANGE ORDER? WHAT, WHO SCREWED UP? RIGHT. DEMAR US OR BOTH OF US OR WHAT'S GOING ON? AND NOW WHAT WE'RE SAYING IS UP TO A MILLION DOLLARS WOULDN'T HAVE TO COME TO COUNCIL AT ALL FOR US TO TALK ABOUT THE CHANGE ORDER. IT'S NOT ABOUT AUTHORITY TO ME. IT'S ABOUT WHY IS THIS HAPPENING AND WHAT DO WE NEED TO DO, IF ANYTHING, TO BID MAYBE BETTER SO THAT WE ANTICIPATE SOME OF THESE THINGS OR THAT WE'RE CLEAR IN OUR DOCUMENTS OR SOMEHOW WE REDUCE THESE NUMBER OF CHANGE ORDERS. 'CAUSE WE'VE GOTTEN A LOT OF THEM RECENTLY AND I THINK IT'S IMPORTANT THAT WE HAVE THE OPPORTUNITY TO TALK ABOUT THEM. SO I WOULDN'T WANNA, IT'S NOT THAT I DON'T TRUST THE STAFF OR THE CITY MANAGER AND I THINK HER AUTHORITY SHOULD BE GREATER THAN A HUNDRED THOUSAND. BUT THIS IS TOO MUCH BECAUSE, BECAUSE IT SAYS GREATER UHHUH CHANGING THE WORD GREATER TO L TO LESS, WHICHEVER IS LESS. I WOULD, I THINK WOULD ADDRESS THAT. I WOULD PROPOSE LESSER BUT BUMP UP A HUNDRED FURTHER TO 150. 'CAUSE WE'RE ALREADY GIVING AN NET 150 WITH OTHER SUGGESTED CHANGES HERE. YEP. THAT MAKES SENSE TO ME. IS THAT GOOD IN IT? UH, AGAIN, IT'S HOWEVER YOU WANNA DO IT. I MEAN, UM, I DON'T TYPICALLY SEE A HIGH VOLUME OF LARGE DOLLAR AMOUNT CHANGE ORDERS COME TO ME. LIKE I SAID, MAYBE A HANDFUL, MAYBE I WAS JUST LOOKING IN DOCUSIGN AND THERE WEREN'T, THERE'S HARDLY ANY THAT HAVEN'T BEEN TO THE COUNCIL. AND THE MOST RECENT ONE WAS INCREDIBLY SMALL. IT WAS LIKE $3,000 I THINK FOR THE YARD DEBRIS PICKUP BECAUSE THERE WAS MORE MATERIAL AND LARGER PILES THAN THE CONTRACT ORIGINALLY THOUGHT WAS GONNA BE PUT OUT AT THE CURB. AND SO THE CONTRACTOR HAD, YOU KNOW, MORE PICKUPS THAN THEY EXPECTED. AND SO IT COST US ANOTHER $3,000. I MEAN, THAT'S AN EXAMPLE, BUT THAT'S WHERE THE PERCENTAGE COMES INTO PLAY BECAUSE IT WOULD, THAT WOULD BE A SMALL PERCENTAGE OF THE OVERALL, SO THAT WOULDN'T HAVE TO COME. THAT'S WHY AGAIN, LEAVE THE PERCENTAGE FINE AND CHANGE [01:25:01] A HUNDRED TO THE 150. BUT THERE IS A CHANCE THOUGH THAT SMALLER DOLLAR THINGS WILL GET CAUGHT BY THE 10% AND THEN GUM UP THE WHEELS A LITTLE BIT. RIGHT. SO YOU CAN, THERE'S A DOWNSIDE OF SAYING LESSER THAN TOO, I MEAN, ONE OPTION IS YOU CAN TRY IT AND IF YOU'RE STARTING TO GET WAY TOO MANY TINY THINGS ON THE COUNCIL'S AGENDA AND ALL THESE PRESENTATIONS AND THAT, AND YOU DECIDE THIS ISN'T WORKING LIKE WE THOUGHT YOU CAN ALWAYS AMEND THE CODE AGAIN AND CHANGE IT. BUT, UM, IF, IF I COULD, IT COULD BE, IT COULD BE JUST 150,000 AGAIN. RIGHT? RIGHT. WELL, YEAH, BUT THEN YOU DON'T, IF YOU, IF YOU TAKE OUT ANY PERCENTAGE, YOU JUST LEAVE IT AT A DOLLAR THRESHOLD. RIGHT. BUT THEN YOU COULD HAVE SOMETHING THAT COSTS, AND AGAIN, BRIAN, DON'T GET INTO THE SPECIFICS HERE. MY BAD EXAMPLES, IF I THINK IT'S A HUNDRED DOLLARS AND THEN THERE'S A 50% CHANGE, UH, 'CAUSE IT WAS 150 AND THAT'S STILL A HUGE PORTION OF SOMETHING. SO I MEAN THERE SHOULD BE SOME SORT OF PERCENTAGE CONTROL. I THINK THAT'S WHEN IT'S, YOU KNOW, THE, THE REPUTATION AND THE SKILL OF THE CITY MANAGERS ARE NOT GONNA SIGN BAD EXAMPLES. YOU KNOW, YOU COULD USE A MUCH HIGHER DOLLAR AMOUNT THERE, BUT DEREK HASN'T GONE YET. SO THE ALTERNATIVE WOULD BE TO LEAVE THE WHICHEVER IS GREATER AND JUST REDUCE THE PERCENTAGE FROM 10 TO EIGHT OR SEVEN OR SOMETHING IF THAT'S, IF YOU'RE CONCERNED TO, TO ADDRESS BRIAN'S CONCERN ABOUT THE SIZE OF THE CONTRACTS. OBVIOUSLY IT'S 7% OF A MILLION DOLLAR CONTRACTS, A LOT LESS THAN 10, MELISSA. SO DO WE GET TO THE SAME POINT BY SAYING 10% NOT TO EXCEED $150,000 UP TO 10% NOT TO EXCEED $150,000 THAT COULD WORK. YEAH, BECAUSE YOU'RE JUST TRYING TO NOT GET ANYTHING ABOVE $150,000. SO WHY NOT JUST SAY THAT THAT WAY IF 10% IS IS, OR YOU KNOW, HER, HER, HER $3,000 IS 12% OF THE CONTRACT THAT DOESN'T COME TO US. 'CAUSE IT DOESN'T EXCEED $150,000. SO IF I COULD JUST, UH, PUT AN OPTION OUT THERE BASED ON MY EXPERIENCE, UM, WOULD BE THAT THE CITY MANAGERS, UH, UH, CHANGE ORDER APPROVAL AUTHORITY WOULD BE, UH, MIRROR, UH, THE, UH, HER SIGNATURE AUTHORITY. AND THAT WHEN WE BROUGHT SPECIFIC PROJECTS TO CITY COUNCIL, WE ASKED CITY COUNCIL TO APPROVE A CONTRACT PRICE AND THEN POTENTIALLY, UH, NOT TO EXCEED, UH, AMOUNT THAT CITY COUNCIL FEELS IS REASONABLE TO AUTHORIZE ADDITIONAL CHANGE ORDERS AND SHOULD, UH, CHANGE ORDERS, UH, COME UP THAT EXCEED THAT NOT TO EXCEED AMOUNT. UH, CITY STAFF WOULD THEN BE OBLIGATED TO BRING BACK, UH, ANY SUCH CHANGE ORDERS. SO JUST ANOTHER OPTION THAT I'VE, UH, EXPERIENCED IN THE PAST, IF YOU CONSIDER OKAY, LET'S MOVE ALONG. OKAY. AND THEN, UH, THERE SOME, BUT IS THERE RESOLUTION, RIGHT? I MEAN, I KNOW YOU WANNA MOVE ON, BUT YEAH. KIRK, WHAT WAS THAT? WELL, IF YOU NEED CHANGES TO THE PROPOSED CODE, WE NEED TO KNOW SO THAT WE BRING BACK THE PROPER LANGUAGE FOR THE NEXT I'VE HEARD TWO, I'VE HEARD WHAT IAN JUST SHARED, UH, WHAT, WHAT YOU JUST SHARED A MOMENT AGO, AND I GET THAT AND THAT I COULD LIVE WITH THAT. AND THEN MELISSA, YOU WERE BASICALLY SAYING USE THAT, WHAT'S UP THERE? BUT WITH THE 10% CAN'T BE MORE THAN 150. I CAN LIVE WITH EITHER ONE. COULD I CAN LIVE WITH THAT. COULD I MAKE A SUGGESTION ON THAT? GO AHEAD. IN THAT CASE, I THINK IT WOULD MAKE SENSE TO ALSO REMOVE THE CUMULATIVE AMOUNT BECAUSE IT'S, YOU'RE TALKING ABOUT INDIVIDUAL CHANGE ORDER AT THAT POINT. OKAY. OKAY. NOW YOU'RE GOOD. FABULOUS. AND YOU'RE GOOD? YES. SO I THINK THREE OF US ARE GOOD AS EVERYBODY ELSE. OKAY. AND I'M FINE. OKAY. IAN, YOU HAVE WHAT YOU NEED. SO IF I'M FOLLOWING YOU, UH, CORRECTLY, IT WOULD BE, UM, INDIVIDUAL AMENDMENTS OR, OR CHANGE ORDERS, UM, UP TO 10% OF THE ORIGINAL CONTRACT COST APPROVED BY COUNCIL NOT TO EXCEED $150,000 WOULD BE WHAT THE CITY MANAGER COULD APPROVE. IS IS THAT YEAH, I THINK THAT SOUNDS RIGHT. WE'RE GOOD. UM, AND THEN, UM, THE EXCEPTIONS, UM, WE CLARIFY THAT, UM, ANY OF THESE EXCEPTIONS, UH, ARE, ARE STILL SUBJECT TO ALL OF THE APPROVAL REQUIREMENTS. THE 150 OR HIGHER COMES TO CITY COUNCIL, UM, 50 TO ONE 50 CITY MANAGER SIGNS ALL CONTRACTS, UH, CITY ATTORNEY. SO WHAT WE'RE PROPOSING TO ADD IS A, A COMPETITION IMPRACTICABLE EXCEPTION. AND THIS IS FOR GOOD SERVICES, PROFESSIONAL SERVICES OR CONSTRUCTION. WHEN COMPLIANCE WITH THE CITY CODE WOULD BE IMPRACTICAL, UNNECESSARY OR CONTRARY TO THE PUBLIC INTEREST. SOME CITIES AND STATE AGENCIES USE LIKE [01:30:01] A, A SOLE SOURCE, BUT, BUT HONESTLY I'M HARD PRESSED TO THINK OF ANYTHING AT ALL THAT WOULD BE A SOLE SOURCE. BUT COMPETITION IMPRACTICABLE, IT DOES HAVE A, A, A PLACE IN A, IN OUR TOOLBOX. UH, AN EXAMPLE THAT, UM, IAN PROVIDED THAT I'LL LET IAN PROVIDE WOULD BE LIKE, UM, UH, WASTEWATER TREATMENT, PLANT E EQUIPMENT OR SERVICE, UH, IAN, MAYBE YOU COULD EXPOUND BETTER THAN I CAN ON COMPETITION AND PRACTICE. YEAH, I THINK THE EXAMPLE WE USED WAS LIKE POTENTIALLY A INTEGRATED SYSTEM, LIKE A SCADA SYSTEM THAT HAS ALL THESE COMPONENTS, UH, SENSORS, THINGS LIKE THAT, THAT ARE TIED INTO IT. AND WHEN WE GO THE NEXT YEAR TO RENEW OUR CONTRACT AND IT'S OVER A SPECIFIC BID THRESHOLD, IT'S OBVIOUSLY IMPRACTICAL FOR THE CITY TO GO THROUGH A WHOLE BID PROCESS AND, AND ALL OF THE COST IN INVOLVED IN THAT. ANOTHER EXAMPLE WOULD BE POLICE OR, UH, FIRST RESPONDER RADIO SYSTEMS THAT ARE ALREADY, YOU KNOW, IF WE NEED TO REPLACE COMPONENTS THAT EXCEED A BID THRESHOLD, IT'S OBVIOUSLY IMPRACTICAL FOR THE CITY TO GO THROUGH A BID PROCESS TO, TO EVALUATE OTHER OFFERS. AND IS THERE ANY MECHANISM FOR THE CITY COUNCIL TO LEARN ANNUALLY? SO ALL THOSE CONTRACTS, UNLIKE UNLIKE THE CURRENT CITY CODE, UH, THE, THE REVISIONS ACTUALLY REQUIRE THOSE CONTRACTS TO GO THROUGH THE SAME APPROVAL PROCESS AS ANY OTHER CONTRACT. SO CITY COUNCIL WILL SEE ANY SOLE SOURCE OR COMPETITION IMPRACTICAL, UH, CONTRACTS THAT EXCEED $150,000. UM, AND YOU KNOW, THE SAME, THE CITY MANAGER WOULD SEE THOSE ABOVE 50,000, ALL OF THOSE WOULD HAVE TO BE APPROVED EITHER BY THE PROCUREMENT OFFICER OR THE CITY MANAGER. UM, UH, THE DEPARTMENTS WOULD PROVIDE RATIONALE AND IN THE RED LINE, UH, CITY CODE PROVISION, UM, WE DO PUT THAT IT, IT WOULD ALSO COMPLY WITH THE PROCUREMENT MANUAL. SO THERE WILL BE SOME ADDITIONAL GUIDANCE IN THE PROCUREMENT MANUAL OF WHAT TRULY IS A COMPETITION. IMP PRACTICABLE IN, IN RUNNING OUT OF TIME IS NEVER A COMPETITION IMPRACTICABLE, UM, WHICH WILL BE IN THE PROCUREMENT MANUAL. UM, AND, AND MAYOR AND COUNCIL, THIS ISN'T SOMETHING THAT'S, YEAH, ONE UNIQUE TO THE CITY, BUT IT'S ALSO DIRECTLY IN STATE LAW, AT LEAST IN TITLE 34. UH, THERE'S A SECTION THAT TALKS ABOUT THAT YOU DON'T NEED TO COMPLY WITH TITLE 34 IF THE COMPLIANCE IS IMP IMPRACTICAL. SO IT'S KIND OF HAVING AN ESTABLISHED STANDARD. UM, THERE ARE, UM, PROCUREMENT OFFICERS AND, AND THOSE WHO DEAL WITH THIS CAN KIND OF COME TO UNDERSTANDING WHAT, WHEN, WHEN, WHEN IT'S APPROPRIATE AND WHEN IT'S NOT. CAN I GIVE AN EXAMPLE OF SOLE SOURCE THAT I'M FREQUENTLY ASKED TO APPROVE? UM, AND THAT IS OUT OF OUR IT DEPARTMENT. WE HAVE, UM, ONGOING ANNUAL MAINTENANCE CONTRACTS WITH OUR SOFTWARE SERVICE PROVIDERS, OFFICE 365, UM, THE FINANCIAL SOFTWARE, THE WHATEVER. AND SO HE FORMALLY SENDS ME THE QUOTE AND EVERYTHING AND SAYS, YOU KNOW, WE NEED TO PURCHASE THIS AGAIN THE NEXT YEAR AND IT QUALIFIES FOR SOLE SOURCE BECAUSE IT'S OUR, YOU KNOW, WE'RE NOT GONNA GO OUT TO BID EVERY YEAR FOR A NEW SOFTWARE SYSTEM FOR OUR EMAIL OR OUR GIS SYSTEM OR, YOU KNOW, WHATEVER IS EMBEDDED IN OUR WORKFLOWS AND THOSE DOLLAR AMOUNTS OR, YOU KNOW, IN LIKE THE THIRTIES USUALLY. UM, AND SO HE'LL SEND THAT DOCUMENTATION TO ME TO APPROVE UNDER OUR PURCHASING MANUAL THAT IT IS A SOLE SOURCE PROCUREMENT FOR THIS PARTICULAR ITEM, FOR THIS SOFTWARE PRODUCT. AND THOSE ARE THE ONLY ONES I'VE SEEN SINCE I'VE BEEN HERE RELATED TO THOSE THINGS. ALRIGHT. UM, WE, WE MENTIONED PURCHASE OF USED EQUIPMENT. UM, WE'RE JUST GONNA ADD THAT PARTS HAVE USED EQUIPMENT HAS TO COMPLY WITH PROCUREMENT MANUAL, BUT, UH, UM, ANOTHER FAIRLY SIGNIFICANT CHANGE IS, IS COOPERATIVE PURCHASING. UM, IT, OUR PROCUREMENT CODE IS SILENT ON THAT RIGHT NOW, BUT THAT'S A, A, A GREAT VALUE TO THE CITY. UM, UM, OFTENTIMES TO, TO USE COOPERATIVE PURCHASING AGREEMENT. SOMEBODY ELSE HAS ALREADY DONE THE HARD WORK. THEY'VE ALREADY DONE A SOLICITATION. UM, SO, BUT, BUT WE MAKE, WE DEFINE IT AND WE DEFINE IT PRETTY NARROWLY. UM, SO A COOPERATIVE PURCHASING AGREEMENT, IT'S A COOPERATIVE CONTRACT, UM, BETWEEN SOMEBODY ELSE AND THE VENDOR. BUT THE CONTRACT WAS AWARDED THROUGH A COMPETITIVE PROCESS WHERE MULTIPLE OFFERS WERE RECEIVED AND DOCUMENTATION IS AVAILABLE TO SUBSTANTIATE THE AWARD, INCLUDING THE BIDDERS LIST, EVALUATION FACTORS, BID TABULATION, AND THE BASIS FOR THE CO COOPERATIVE CONTRACT AWARD. THAT'S STRAIGHT OUTTA THE, THE STATE LANGUAGE. AND I, I LIKED IT BECAUSE SOME OF THE COOPERATIVE AGREEMENTS ARE CONFL FLAM, BUT, BUT MOST OF THEM ARE, ARE NOT. AND IAN'S REALLY GOOD TO TELL TO, YOU KNOW, THAT'S NOT A GOOD ONE. UM, SO, SO WE, WE ADDED COOPERATIVE, UM, PURCHASING AGREEMENT AND IAN CAN BRIEFLY TALK ABOUT THE DIFFERENCE BETWEEN WHAT WE'RE DOING NOW VERSUS WHAT THIS CHANGE WOULD, UH, ENTAIL. YEAH, SO EVEN ON LIKE SOME OF THOSE SOLE SOURCE REQUESTS THAT ANNETTE WAS SPEAKING TO, WE'RE STILL MAKING SURE WE GET COOPERATIVE PRICING TERMS AND CONDITIONS ON THOSE. UH, SO THAT'S FAVORABLE TO US BECAUSE MUCH LARGER AGENCIES SUCH AS THE STATE OR EVEN UH, NATIONAL COOPERATIVE, UH, ENTITIES HAVE GONE THROUGH A SOLICITATION PROCESS AND SECURED THEIR MEMBERS WITH FRANKLY [01:35:01] FANTASTIC PRICING AND ALSO, UH, FROM MONIQUE AND I'S PERSPECTIVE GREAT TERMS AND CONDITIONS OF WORKING WITH THESE COMPANIES. UM, UH, SO RIGHT NOW THE, THE PRECEDENT THAT'S BEEN SET, UH, AT THE CITY IS AT CITY COUNCIL HAS TO APPROVE EACH AND EVERY, UH, COOPERATIVE PURCHASING ENTITY THAT THE CITY IS ALLOWED TO UTILIZE. UM, ALLOWING, UH, THE CITY MANAGER AND PROCUREMENT OFFICER TO DO THAT INSTEAD WOULD ALLOW US FLEXIBILITY TO QUICKLY GET TOGETHER CONTRACTS, SAVE TIME, AND HAVING, YOU KNOW, A SIX WEEK ZONE BETWEEN, HEY, WE'D REALLY LIKE TO USE THIS CONTRACT, BUT WE'RE STILL NOT SURE IF WE'RE ALLOWED TO. UM, IT'S CONSISTENT WITH BEST PRACTICES ACROSS THE COUNTRY IN PROCUREMENT, PUBLIC PROCUREMENT, UM, I, YOU KNOW, IT DOES HAVE CRITERIA THAT WE HAVE TO ANALYZE AND MAKE SURE THAT IT'S, UH, A GOOD, A GOOD CO-OP AND I PROMISE TO, TO DO THAT FOR YOU GUYS. YEAH. AND, AND YOU'LL STILL SEE ANY PURCHASE OVER $150,000 THROUGH THE USE OF A COOPERATIVE. YOU JUST WON'T SEE. IT'S LIKE, HEY, CITY COUNCIL, MAY WE PLEASE USE MOJAVE COOPERATIVE? MAY WE PLEASE USE, UH, SO JUST, UH, REALLY KINDA STREAMLINE THE COOPERATIVES. UH, WE ARE ALMOST DONE HERE. UM, CURRENTLY THE CITY CODE IS, IS A LITTLE BIT OUTDATED FOR SOLICITATIONS. IT ONLY REFERENCES INVITATION TO BID IFB. WE DO A LOT OF QUALIFICATIONS BASED SOLICITATIONS IN A LOT OF AREAS. SO WE'RE SIMPLY, UM, BRINGING IT UP TO, UH, 2025 STANDARDS LIKE ALL OTHER CITIES. SO, UH, RATHER THAN JUST INVITATION FOR BID, UH, THE CITY CAN DO, UM, MULTI-STEP COMPETITIVE SEALING, SEALED BIDDING, UM, QUALIFICATIONS BASED R-F-P-R-F, QIFB. SO WE'RE SIMPLY UPDATING THAT TO WHAT WE'RE CURRENTLY DOING. AND THEN WE ALSO, UM, INCLUDED SOME EVALUATION CRITERIA IN THERE. SO IN THE DEPARTMENT HEAD WORKS WITH IAN TO DETERMINE, WELL, WHAT TYPE OF SOLICITATION DO I WANNA DO BECAUSE I, OH, I I'M REQUIRED TO DO A FORMAL SOLICITATION FOR THE, UH, PROCUREMENT CODE. UH, WHAT TYPE AND THEN HOW SHOULD WE EVALUATE IT? SO THAT'S WHAT THIS SECTION INCLUDES. UM, PERFORMANCE BOND. UH, SIMPLY ADDING A PROCUREMENT OFFICER MAY ALSO REQUIRE PERFORMANCE BOND, UM, IN ADDITION TO CITY MANAGER EMERGENCY PURCHASES. RIGHT NOW, THE CITY CODE AUTHORIZES THE MAYOR TO MAKE, UM, EMERGENCY PURCHASES IF AN EMERGENCY IS DECLARED. SO IF THE MAYOR OR THE CITY COUNCIL DECLARES AN EMERGENCY MAYOR MIGHT BE PRETTY BUSY. SO WE'RE SIMPLY PROPOSING TO EMPOWER THE CITY MANAGER ON PROCUREMENT OFFICER, UH, TO MAKE PURCHASES IF AN EMERGENCY HAS BEEN DECLARED FOR THE CITY OF SEDONA, UH, WHICH IS CONSISTENT WITH WHAT OTHER CITIES ARE ARE DOING IN ARIZONA RIGHT NOW. UM, ONLY HAVE TWO MORE SECTIONS TO GO. SURPLUS EQUIPMENT, UH, COMPLY WITH PROCUREMENT MANUAL, UH, SIGNATURES ON CHECKS. UH, WE'RE JUST ADDING DEPUTY CITY MANAGER, CITY FINANCE DIRECTOR, THE, YOU KNOW, THE CHECKS THAT WE, WE SEND OUT. SO, UH, THOSE ARE THE PROPOSED REVISIONS. UM, I I WANNA MAKE SURE THAT, UH, I UNDERSTAND, UM, WHETHER OR NOT THERE ARE SOME PROPOSED, UM, UH, REVISIONS DIRECTION ON PROFESSIONAL SERVICES THAT 150 ABOVE REQUIRES A SOLICITATION OR CONSTRUCTION, UM, PROFESSIONAL SERVICES. WHETHER CITY COUNCIL WANTS TO BE MORE STRINGENT THAN, UH, WHAT WE ARE PROPOSING ON THOSE TWO AREAS. I'M NOT QUITE SURE I, UH, GOT A CONSENSUS. I THOUGHT THE UNDERSTANDING WAS THAT THERE WOULD BE LANGUAGE THAT JUST SPEAKS TO PER FOLLOWING THE PROCUREMENT MANUAL FOR, UH, BOTH THE PROFESSIONAL, UH, THE NON-CONSTRUCTION PROFESSIONAL SERVICES AND THE CONSTRUCTION PROFESSIONAL SERVICES. I BELIEVE SO. OKAY. YEAH, I'M GOOD. IS THIS SOMETHING THAT, UH, YOU'D LIKE TO SEE BACK ON, UM, UH, AS A REGULAR AGENDA ITEM OR MAKE THE CHANGES AND JUST PROPOSE THEM AS A, A CONSENT ITEM? LOUDER FOR ME? CONSENT. CONSENT WOULD BE FINE. OKAY. JUST SO LONG AS WE UNDERSTAND THAT FROM THE COUNCIL THAT WE'VE AGREED FOR IT TO BE CONSENT, IT MUST BE FINE. SOMETHING IT SOME WAY TO IDENTIFY ANY CHANGES THAT YOU'VE MADE FROM TODAY MOVING FORWARD. YES. I WILL DO A BLUE LINE TO THE RED LINE AND A RED LINE TO THE CLEAN COPY . OKAY. AND I'LL EXPLAIN IT. RED LINE, MAKE A NOTE. RED. YEAH. AND I'LL, I'LL EXPLAIN IT IN THE, UH, CONSENT, UM, AGENDA BILL ITEM. SO THAT'S ALL I HAD. I REALLY, REALLY APPRECIATE YOUR, YOUR, UM, FEEDBACK, UM, AND IN INPUT ON THAT. IT'S BEEN A, IT'S BEEN A LONG TIME COMING AND I THINK THE DEPARTMENTS WILL APPRECIATE THE FLEXIBILITY AND I KNOW, UH, IAN AND I WILL BREATHE A LITTLE BIT EASIER. THANK YOU VERY MUCH. THANK YOU, IAN. OKAY, NEXT ONE'S GONNA BE ANOTHER LENGTHY ITEM I, ITEM C I'M GONNA LOOK FOR A MOTION TO DEFER FOR CONSIDERATION TO ANOTHER DATE FUTURE MEETING. YES, MAYOR, I UNDERSTAND THAT THERE IS ADDITIONAL INFORMATION THAT'S SUPPOSED TO COME FORWARD ON THAT, SO THEREFORE I'D LIKE TO MAKE A MOTION TO TABLE DISCUSSION ON THIS ITEM TO THE JUNE 24TH [01:40:01] MEETING. SECOND. HOLD ON FOR DISCUSSION. ANNETTE, ARE WE GOOD WITH THAT? JUNE 24TH? YEAH. GOOD. OKAY. ALRIGHT. UM, ANY OTHER DISCUSSION? OKAY. AND THE MOTION, COULD I GET, I WAS AWAY FROM UM, MY CHAIR HERE. THE MOTION WAS MADE BY KATHY COUNCILOR UL AND SECONDED BY THANK YOU. NO FOLTZ. OH, COUNCILOR FUL. YOU LOOK AT THAT. THE DYNAMIC DUO. YEAH, SHE SLEPT RIGHT VOL. FALSE. OKAY. UH, ALL IN FAVOR SAY AYE. AYE. AYE. AND THE OPPOSED? WE UNANIMOUS. OKAY. ITEM [8.d. AB 3188 Discussion/possible direction/action regarding proposed State legislation, short-term rental legislation, lobbying efforts, and State budget and their potential impact on the City of Sedona.] D, AB 31 88. DISCUSSION, POSSIBLE DIRECTION. ACTION. REGARDING PROPOSED STATE LEGISLATION, SHORT TERM RENTAL LEGISLATION, LOBBYING EFFORTS AND STATE BUDGET AND THEIR POTENTIAL IMPACT ON THE CITY OF SEDONA. KURT, DO YOU HAVE ANYTHING FOR US? I DON'T, UH, MAYOR AND COUNCIL, THE ONLY NEWS, AS WE HEARD FROM THE CITY LOBBYISTS KATHY SENSEMAN, THAT THERE IS FINALLY SOME MOVEMENT ON THE BUDGET, UM, THIS LAST WEEK, BUT THEN THEY TOOK THIS WEEK OFF AND THEY'RE GONNA MEETING AGAIN ON MONDAY. AND SO THEY ARE OPTIMISTIC THE GOVERNOR AND, UH, THE SENATE AND, AND, UH, HOUSE THAT THEY WILL HAVE A BUDGET BY THE JUNE 30TH DEADLINE. OKAY. ALRIGHT, [8.e. AB 3066 Discussion/possible action regarding future meeting/agenda items.] ITEM E, AB 30 66. DISCUSSION, POSSIBLE ACTION REGARDING FUTURE MEETING AND AGENDA ITEMS OTHER THAN THE MEETING TOMORROW AT, UH, THREE O'CLOCK. ANYBODY HAVE ANY OTHER ITEMS? OKAY, HEARING NONE. THIS MEETING [10. ADJOURNMENT] IS 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.