* 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. SORRY, [00:00:01] ALSO WAY MORE. OKAY, EVERYBODY, [1. CALL TO ORDER] YOU GONNA CALLED THE MEETING TO BORDER AT 8:01 AM ON WEDNESDAY, DECEMBER 17TH. MADAM CLERK, CAN YOU DO THE ROLL CALL? UM, MAYOR PLU HERE. VICE MAYOR FUL. PRESENT. COUNCILOR DUNN. COUNCILOR FURMAN. PRESENT. COUNSELOR FUL OR, UM, HUSSEI IS EXCUSED ABSENT. UM, COUNSELOR KINSELLA HERE. COUNSELOR FRO . OKAY, [3. SPECIAL BUSINESS] WE'RE ON DAY REVIEW OF OUR RETREAT. I'M GONNA TURN IT OVER TO BARBARA. THANK YOU, MADAM MAYOR. BARBARA WHITEHORN, DEPUTY CITY MANAGER. GOOD MORNING COUNCIL LEADERSHIP COMMITTEE. MEMBERS OF THE CITIZENS BUDGET. IS THAT ON NOT WORKING? OH YEAH, I DIDN'T TURN IT ON. THERE'S DETAILS. ALL RIGHT, I'LL START THAT AGAIN. I WAS SOUNDING REALLY GOOD TOO. JUST, YOU KNOW, UM, BARBARA WHITEHORN, AGAIN, DEPUTY CITY MANAGER. UH, GOOD MORNING MAYOR. MEMBERS OF COUNCIL LEADERSHIP TEAM. AND WE HAVE TWO MEMBERS OF THE CITIZENS BUDGET WORK GROUP HERE AS WELL TO OBSERVE. UM, AND I'LL JUST GET US STARTED THIS DAY IS A OVERVIEW OF THE CONTEXT FOR THE BUDGET COMING UP. WE'LL HAVE, UM, IF YOU WANNA GO TO THE NEXT SLIDE, WE'RE, YOU KNOW, SETTLING IN. WE'RE GONNA HAVE AN ECONOMIC UPDATE FROM, UH, STERLING AND THEN A TOURISM UPDATE FROM ANDREW. AND THEN WE'LL TALK ABOUT EXPENDITURE LIMITATION, THE BUDGET ASSUMPTIONS THAT YOU ALL WOULD LIKE TO SEE GOING INTO THIS YEAR. UM, THE BUDGET MODEL, AND AS I KNOW YOU ALL ARE AWARE, WE'RE IMPLEMENTING A ZERO BASED BUDGETING THIS YEAR. AND THEN, UH, COUNCIL DIRECTION AT THE END OF THE DAY. AND PLEASE KNOW THAT THESE TIMES ARE JUST GUIDES AND IF WE, YOU KNOW, ARE AHEAD OF TIME, IF WE'RE RUNNING LATE, THERE'S NOTHING IN HERE THAT CAN SHIFT A LITTLE BIT. SO WITH THAT, I AM GOING TO TURN IT OVER TO STERLING TO DO'S ECONOMIC UPDATES. SO WE'RE A LITTLE AHEAD OF TIME, BUT I THINK THAT'S OKAY. AND HE HAS A SIT RIGHT HERE. CAN EVERYONE HEAR ME? OKAY? GREAT. WELL, GOOD MORNING EVERYONE. GOOD MORNING, MAYOR, VICE MAYOR AND COUNCIL. UH, WE'RE GONNA TALK JUST BROADLY HERE ABOUT AN ECONOMIC ECONOMIC UPDATE AND WHAT THAT MEANS FOR SEDONA AND GOING INTO THE FY 27 BUDGET PLANNING. ALL RIGHT, FOR THE BIG PICTURE, UM, A LOT OF ESTIMATES RIGHT NOW ARE COMING IN MODERATE US AND GLOBAL GROWTH IS EXPECTED INTO FY 26. WE'LL GET A LITTLE BIT INTO WHAT THAT MEANS. BUT AS A BIG PICTURE, THIS REALLY JUST MEANS FOR THE CITY, FOR THE STATE OF ARIZONA CAUTIOUS CONSUMER SPENDING, UH, OFFSET BY AN ADVANCEMENT IN BUSINESS AND TECHNOLOGY INVESTMENT. SO A LOT OF THAT IS AI AND DATA CENTERS. THE ARIZONA MIDDLE CLASS TAX CUTS AND FEDERAL FUNDING CHANGES ARE SOMETHING ALSO WE'RE, WE'RE MONITORING WITH STATE REVENUE. SEDONA REVENUES ARE LESS RELIANT ON STATE REVENUE AND MORE HEAVILY IMPACTED BY LOCAL TOURISM AND RECOMMENDATION FROM THE GOVERNING BODY. GFOA IS CONSERVATIVE BUDGETING AND CONTINGENCY PLANNING, ADVISED WITH RECESSION RISKS AND GLOBAL STRUCTURAL HEADWINDS. AND, AND PLEASE FEEL FREE, FEEL FREE TO STOP ME IF THERE'S ANY QUESTIONS ALONG THE WAY. SO RECENTLY THE, UH, THE VERDE VALLEY ECONOMIC FORUM, WHICH I KNOW COUNSELOR, UH, LTZ WAS THERE, AND ANDREW FROM THE CITY WAS PRESENTING. SO I JUST WANTED TO SHARE A LITTLE BIT OF UPDATE FROM THIS FORUM. SO FOR THE SHORT TERM MARKET OUTLOOK, SO THIS IS ZERO TO THREE YEARS, ECONOMIC VOLATILITY IS ABOUT A 50 50 RECESSION RISK. AND WHAT THAT MEANT REALLY IS THAT NO ONE'S REALLY WANTING TO MOVE THE NEEDLE ON PREDICTING A RECESSION. NO ONE WANTS TO BE THE ONE THAT CAUSES A RUN ON THE BANKS. SO ANALYSTS ARE WAITING FOR A SOFT RECESSION SIGNALS FOR Q1 2026. UM, WE MAY SEE SOME BENEFITS FROM TAX CHANGES, UM, BUT THIS [00:05:01] IS MORE TO BE SEEN AS A PLAYOUT OVER TIME. IT MIGHT NOT HAVE IMMEDIATE IMPACTS. AND THEN TARIFF IMPACTS TO BE FELT MORE STRONGLY IN 2026, SOMETHING THAT WE'RE NOT FILLING A HUNDRED PERCENT RIGHT NOW. HOUSING AND ASSET PRICES ARE SOFTENING. AND AS YOU CAN SEE IN THIS GRAPH, INFLATION CONTINUES WITH THE GOVERNMENT SHUTDOWN. UH, THERE WAS A LAPSE IN REPORTING. THAT'S WHY WE DON'T HAVE SEPTEMBER AND AUGUST REPORTING YET. BUT EVERY PROJECTION OR PROJECTION IS SHOWING THAT INFLATION IS, IS GENTLY INCREASED, EXCUSE ME, INCREASING. AND THEN LASTLY, FROM THIS, UM, FORUM, THEY TALKED ABOUT A KHAP ECONOMY. SO SOME SECTORS ARE IMPROVING WHILE OTHERS ARE DECLINING. AND I JUST PULLED UP REAL QUICKLY SOME SECTORS THAT ARE DOING WELL. SO TECHNOLOGY AND AI. SO THERE'S A STRONG INVESTMENT IN AI, SEMICONDUCTORS, CLOUD COMPUTING AND DATA INFRASTRUCTURE. UH, A COUPLE OTHER SECTORS THAT ARE DOING WELL. OH, SORRY. OKAY. NO, I JUST WANTED TO ASK IF YOU WOULD EXPLAIN WHAT THEY MEAN BY K SHAPE. YEAH, K SHAPE IS KIND OF, THE ECONOMY'S GOING IN TWO DIFFERENT DIRECTIONS, JUST DEPENDING ON THE SECTOR. SO WITH THE K SHAPE, THE ECONOMY, SOME SECTORS IMPROVE WHILE OTHERS ARE, ARE, UH, NOT IMPROVING. SO THAT'S WHAT'S CREATING THIS WIDENING GAP. ANOTHER SECTOR THAT'S DOING WELL IS DEFENSE AND AEROSPACE HEALTHCARE DEVELOPMENT. SO WHAT THAT MEANS IS SPECIALIZED CARE, BIOTECH, MEDICAL TECHNOLOGY, ENERGY AND INFRASTRUCTURE, AND THEN HIGH INCOME SERVICES. SO LUXURY TRAVEL EXPERIENCES AND PROFESSIONAL SERVICES STILL REMAIN RESILIENT, WHICH IS A GOOD INDICATOR FOR SEDONA. SOME SECTORS THAT ARE STRUGGLING. LOW INCOME CONSUMER RETAIL, COMMERCIAL REAL ESTATE, SMALL BUSINESSES. SO AN IMPACT TO THAT IS HIGHER WAGES, INSURANCE, INSURANCE INFLATION, AND THEN FINANCING COSTS. UH, MANUFACTURING. SO NON-TECH. UH, SO THERE'S JUST BEEN SLOWER DEMAND AND INVENTORY ADJUSTMENTS, ESPECIALLY WITH TARIFFS. AND THEN HEALTH, HEALTHCARE, UH, FOR COST SENSITIVE PROVIDERS. FOR THE VERDE VERDE VALLEY ECONOMIC FORUM FOR THE LONG-TERM MARKET OUTLOOK, THERE'S STILL, UH, YOU KNOW, A POSITIVE SENTIMENT AROUND TECH DRIVEN MOMENTUM AND WHAT THAT MEANS TO THE VERDE VALLEY. WHAT THAT COULD BRING IN, IN TERMS OF JOB GROWTH, HIGH FEDERAL DEBT IS, IS ALWAYS, UM, ON THE HORIZON ON HOW THAT MIGHT LIMIT GROWTH IN JUST ABOUT EVERY CITY IN ITS STATE IN THIS COUNTRY. AND THEN POSITIVE SUPPORT FROM PRODUCTIVITY GAINS, UM, ESPECIALLY IN THIS, IN THIS REGION IS BOOMER WEALTH TRANSFERS AND THEN INFRASTRUCTURE INVESTMENT. AND IN INFLATION IS EXPECTED TO CONTINUE AT ABOUT TWO AND A HALF TO THREE, THREE AND A HALF PERCENT. UM, SOME OF THE HEADWINDS THAT WE'RE FACING WITH GDP GROWTH IS LABOR SHORTAGES, HEALTHCARE COSTS, AND THEN REDUCED GLOBAL TRADE FROM TARIFF IMPACTS. SO THE CITY USES STIFEL AS ITS INVESTMENT ADVISOR AS WELL AS ITS, UH, DEBT ISSUER. SO WE PULLED SOME OF THE RESEARCH THAT STIFEL HAS PRODUCED AND SHARED WITH THE CITY FOR THIS, UH, COUNCIL RETREAT. SO AT THE TIME WE PRODUCED THIS SLIDE, UH, SO THIS IS A LITTLE OUTDATED. WE WERE PROJECTING THE DECEMBER RATE CUTS. SO THIS RATE CUT DID GO THROUGH. IT WAS A 25 POINT, A 25 BASIS POINT CUT. SO I DID PULL UP FOR THE NEXT FED, UH, FED RATE CUT, WHICH IS JANUARY. THERE'S A 70% PROBA PROBABILITY OF NO RATE CUT. AND MOSTLY THAT'S DRIVEN JUST BECAUSE OF THE, UH, THE POOR UNEMPLOYMENT NUMBERS THAT HAVE BEEN, THAT HAVE COME OUT. SO IF YOU LOOK AT THE BOTTOM OF THIS SLIDE, THIS AGAIN IS OUTDATED. SO UNEMPLOYMENT TICKED UP FROM 4.3 TO 4.4, AND WE NOW HAVE THE DECEMBER, UH, EXCUSE ME, THE NOVEMBER DATA. SO NEW DATA RELEASED IN DECEMBER SHOWED THE UN UNEMPLOYMENT RATE ROSE FROM FOUR, UH, TO 4.6%. THIS IS THE HIGHEST LEVEL SINCE SEPTEMBER, 2021. UM, JUST I PUT IN HERE AS JUST A LITTLE POSITIVE NOTE IN, IN KIND OF ALL OF THIS IS GOVERNMENT SECURITIES ARE YIELDING ABOUT 3.75% AND EXPECTED TO CONTINUE TO GO DOWN. THE CITY DID POSITION ITSELF WITH, UM, SOME CDS AND, AND GOVERNMENT SECURITIES AT ABOUT 4.4 0.5% YIELD. SO WE'RE CURRENTLY RIGHT NOW BEATING THE BENCHMARK 'CAUSE THE BENCHMARK IS ABOUT 3.9 AND THE CITY'S YIELDING ABOUT 4.1% ON ITS INVESTMENTS. GO AHEAD. ALL RIGHT. AND, UH, AGAIN, JUST SOME LAG WITH CPI. TYPICALLY, THE CITY LIKES TO GIVE TO STAFF THE DECEMBER CPI NUMBER AS A GOOD ESTIMATE ON WHAT TO PROJECT OUT FOR INFLATION COSTS. WE DON'T HAVE THAT NUMBER JUST DUE TO THE GOVERNMENT SHUTDOWN. SO THE LATEST NUMBER WE HAVE, AGAIN GOING BACK TO AUGUST, IS ABOUT A 3% INFLATION. SO AS STAFF PREPARE THEIR COST ESTIMATES USING A AUGUST CPI, ABOUT 3% IS WHAT WE'RE USING UNTIL WE GET THE DECEMBER [00:10:01] NUMBER IN. UM, BIG NEWS THAT YOU'RE PROBABLY SEEING A LOT OF HEADLINE INFORMATION ON RIGHT NOW IS JEROME POWELL'S FED TERM ENDS IN MAY, 2026. THE GOAL IS THAT, UH, THE TRUMP ADMINISTRATION WILL HAVE A REPLACEMENT BY CHRISTMAS AND TRUMP'S NOMINATION IS LIKELY TO CONTINUE A LOWER RATE ENVIRONMENT. I DO HAVE SOME INFORMATION IF ANYONE'S INTERESTED ON WHO THE NEXT PICK CAR, UH, THE LIKELY CANDIDATES ARE KEVIN WALSH AND KEVIN HASSETT IF YOU, UH, IF YOU WANNA GO RESEARCH THEM AND LEARN ABOUT THEM. BUT BOTH OF THEM ARE VERY MUCH, UM, PRO UH, FAVORING CLEAR MONETARY RULES, YOU KNOW, REDUCING FEDERAL DEFICIT. SO IF THAT GIVES YOU ANY INDICATION, , UH, AND THEN I DID WANNA PUT IN HERE, PUT OPTIONS TRADING SIGNALS, RISING MARKET PESSIMISM. SO THERE HAS BEEN AN INCREASE IN PUT OPTIONS TRADING, WHICH IS USUALLY AN INDICATION THAT THERE IS SOME GROWING PESSIMISM IN THE MARKETS. YEAH, LEMME PULL THAT UP. OKAY. I JUST, I WANTED TO READ THIS 'CAUSE I KNOW SOMETIMES PEOPLE AREN'T TOO FAMILIAR WITH PUT AND CALL OPTIONS. SO WHEN PUT ACTIVITY INCREASES RELATIVE TO CALL OPTIONS, IT OFTEN REFLECTS GROWING CONCERN ABOUT A DOWNSIDE RISK. SO A CALL IS, SOMEONE'S BASICALLY PUTTING OUT A PROJECTION OR A PREDICTION, THE MARKET'S GONNA GO UP. SO WHEN PUT OPTIONS RISE TO CALL OPTIONS, TYPICALLY THERE'S HEIGHTENED UNCERTAINTY. UM, SO THERE COULD BE, REALLY THE MAIN DRIVER IS EITHER INTEREST RATE RISK OR GEOPOLITICAL RISK. THAT'S SOMETHING THESE SLIDES DON'T REALLY TOUCH ON, IS THERE IS A MOUNTING GROWTH OF GEOPOLITICAL RISK. YOU KNOW, I, I DIDN'T PUT THAT IN HERE, BUT YOU KNOW, THE BLOCKADE WITH VENEZUELA, THERE ARE SOME OF THOSE CONCERNS. DIDN'T PUT THAT IN HERE, BUT THERE IS OPPORTUNITY ALWAYS IN EVERY FORECAST MODEL FOR GEOPOLITICAL RISK. AND I THINK THAT'S SOMETHING THAT THE CITY ALWAYS HAS TO BE NIMBLE AND READY TO, TO DEAL WITH. I THINK THE LAST TIME WE SAW THAT REALLY WAS COVID AND HOW THAT IMPACTED, UH, THE CITY. I DON'T KNOW. YEAH. ALL RIGHT. UM, JUST LOOKING AT A BROADER OUTLOOK. SO WE ARE IN THE FULL SWING OF THE AI AI RACE. SO A HUGE INVESTMENT. THIS IS PROBABLY THE LARGEST DRIVER OF GDP IN THE COUNTRY, IS THE LARGE INVESTMENT INTO AI. THIS IS CREATING NEW JOBS AS IT'S REPLACING OLD. SO THE, THE IMPACT OF WHAT THAT MEANS OVER THE NEXT FEW YEARS AND HOW THAT KIND OF CANCELS OUT JOB GROWTH, WHILE IT REMOVES JOBS WE'RE WATCHING VERY CLOSELY. SO YOU PROBABLY KNOW SOME OF THESE NAMES. AND THEN I WANTED TO PULL IN KIND OF THE TWO INDUSTRY LEADERS. SO S AND P IS A RATING AGENCY AND JP MORGAN, PROBABLY THE LARGEST BANK AND PRIVATE WEALTH MANAGEMENT TO GET THEIR ASSESSMENTS. SO BOTH OF THEM VERY SIMILAR. UH, NEAR TERM SLOW DOWN TO ABOUT 1% GDP GROWTH AND THEN A RECOVERY OF ABOUT 3% IN THE NEXT TWO TO THREE YEARS. AGAIN, WE'RE SEEING THESE ESTIMATES VERY CONSISTENT. I WOULD SAY THAT MOST OTHER, UH, COMPANIES, INCLUDING STIFEL THAT PUT OUT THEIR PROJECTIONS REALLY ARE LOOKING AT THESE TWO COMPANIES AND THEN KIND OF BASING THEIR ASSUMPTIONS OFF THESE TWO. UH, I WOULD SAY GOLDMAN SACHS IS A GOOD REPLACEMENT ALTERNATIVE FOR JP MORGAN. AND THEN FOR S AND P AS MOODY'S. AND THEN, SO FOR S AND P, THEY'RE PROJECTING AT AT 2% GDP GROWTH FOR FY 26, EXCUSE ME, FOR 2026. THAT WOULD BE GOING INTO FY 27. UH, AGAIN, THE CONCERN IS SLOWER CONSUMER SPENDING AND THEN SEEING A RESILIENT INVESTMENT SIDE IN AI DATA CENTER GROWTH. OKAY, FOR ARIZONA, UM, DID WANT TO HIGHLIGHT THE TAIWAN SEMICONDUCTOR. SO JUST WANTED TO GO THROUGH WHAT THE RESEARCH THAT I HAD FOUND IN, IN RESEARCHING THEIR, UH, THEIR DEVELOPMENT OF THEIR SITE. SO PHASE ONE OF THE PROJECT BECAME OPERATIONAL IN 2024. THEY LAID THE, THE GROUNDWORK FOR SUPPLY CHAIN DEVELOPMENT. PHASE TWO, IF ANYONE'S INTERESTED, IS IMPLEMENTING N THREE TECHNOLOGY. I CAN JUST HIGHLIGHT WHAT I READ FROM THAT. N THREE IS NANOMETER SEMICONDUCTOR MANUFACTURING PROCESS, WHICH ENABLES SMALLER, MORE DENSELY PACKED TRANSITS THAT DEVELOP FASTER PERFORMANCE AND GREATER ENERGY EFFICIENCY. SO THE REAL TECH SIDE OF WHAT, UH, TAIWAN SEMICONDUCTOR IS DOING. AND THEN PHASE THREE IS CONTINUED CONSTRUCTION TO 20 25, 20 26. THESE JOBS THAT ARE BRINGING IN ARE NOT LOW INCOME JOBS. AVERAGE PAYING S SALARY IS BETWEEN 160 TO TWO 50, YOU KNOW, UPPER EXECUTIVE MANAGEMENT THREE 50. SO THESE ARE, THIS IS, YOU KNOW, A WELL-PAYING COMPANY THAT'S COMING INTO ARIZONA. AND, UM, REASON I BRING THIS IN HERE IS THIS HAS A DIRECT IMPACT ON SEDONA WITH JOB GROWTH I 17 EXPANSION. UM, THESE ARE PEOPLE THAT POTENTIALLY COULD BE SECOND HOME PURCHASERS. SO THIS IS A BIG IMPACT ON THE OVERALL ARIZONA ECONOMY. DID WANT TO PUT IN HERE THE MIDDLE CLASS TAX CUT PACKAGE. UM, THIS [00:15:01] DOES INCREASE STANDARD DEDUCTION AND ADDS SENIOR TIP OVERTIME DEDUCTIONS. AGAIN, UM, THIS SUPPORTS TAX, YOU KNOW, TAKE HOME PAYING CONSUMER SPENDING, BUT IT MAY REDUCE STATE INCOME TAX REVENUES OVER TIME. NEXT IS THE FEDERAL HR ONE CHANGES. SO THESE ARE THE SWEEPING CHANGES THAT WHENEVER A NEW PRESIDENCY COMES IN, UH, THAT PASSES A NEW BILL. AND SOME OF THE CHANGES THAT WE SAW WAS A SHIFTING COST TO THE STATES. SO THIS COULD ALSO BE SOMETHING THAT WE SEE REDUCES STATE INCOME THAT IS THEN DIRECTLY PASSED ON. SO WHEN WE'RE THINKING OF STATE SHARED REVENUE, WE'RE THINKING, YOU KNOW, KEEPING VERY CONSERVATIVE, IF NOT KEEPING THOSE REVENUES GOING DOWN AS MORE, UM, RESPONSIBILITY IS BEING PASSED TO THE STATES FROM THE FEDERAL GOVERNMENT. AND THEN AGAIN IN HERE, WHEAT CAUTIOUS CONSUMER SPENDING MAY SLOW SALES TAX GROWTH. THIS DOESN'T DIRECTLY IMPACT TOURISM, BUT THIS IS, YOU KNOW, A DIRECT IMPACT ON OUR STATE SHARED REVENUE. SO SOME SEDONA TAKEAWAYS, UH, AGAIN, JUST FOLLOWING GFOA GUIDANCE IS TO MAINTAIN CONSERVATIVE BUDGET BUDGETING AND CONTINGENCY PLANS. UH, FOR US AS A TEAM, WE'RE MONITORING GLOBAL AND STRUCTURAL RISKS. SO INFLATION, SUPPLY CHAIN, AI, TECH INVESTMENT, LEVERAGE, STABLE MUNICIPAL REVENUES TO SUPPORT CAPITAL IMPROVEMENTS, AND THEN TRACK FEDERAL AND STATE POLICY CHANGES IMPACTING REVENUE AND FISCAL FLEXIBILITY, SOMETHING WE'RE WATCHING VERY CLOSELY. UH, AND THEN CONTINUE TO FUND OUR, OUR RESERVES. SO TALKING A LITTLE BIT NOW ABOUT SALES TAX. SO FOR JUNE AND JULY, UM, TYPICALLY WHAT WE SEE HERE IS THERE ARE SOME DELINQUENT PAYERS THAT CAUSE A LITTLE BIT OF A LAG THAT THEIR PAYMENTS DON'T NECESSARILY HIT BY THE END OF THE FISCAL YEAR. SO SOME OF THEIR PAYMENTS REALLY TRICKLE INTO JULY. THIS GRAPH'S A LITTLE BIT EASIER TO SEE. SO AGAIN, JUNE, JULY SOMETIMES CAN BE A LITTLE UNPREDICTABLE BECAUSE THERE IS A A THAT WE, WE DO HAVE SOME DELINQUENT PAYERS. WE CAN'T NAME WHO THEY ARE, BUT SOMETIMES THEY DON'T PAY ON TIME. AND THOSE PAYMENTS HIT IN JULY, AUGUST WE CAN SEE WAS PRETTY MEDIOCRE. AND THEN SEPTEMBER IS, YOU KNOW, A SMALL WIN THAT WE DID SEE A LITTLE BIT HIGHER THAN PRIOR FISCAL YEARS. BUT AGAIN, MONITORING VERY CLOSELY HOW THIS PINK BAR CONTINUES. UM, IF WE LOOK AT THE BLUE BAR WAS MOSTLY POSITIVE. THERE WAS A LITTLE BIT AT THE END OF THE FISCAL YEAR, YOU COULD KIND OF SEE THAT IT WAS TAILING OFF. AND I THINK THAT'S WHAT'S LED TO SOME HEIGHTENED CONCERN AND WATCH OF HOW SALES TAX COMES INTO THE CITY. YEAH. QUESTION ON, ARE THOSE WHO REPORT LATE, IS IT CONSISTENTLY THE SAME MALE OR BUSINESSES OR IS IT, UH, DOES THAT VARY? IT IT VARIES. UM, IT'S, IT'S NOT SOMETHING WE SEE COMMONLY EXCEPT AROUND JUNE AND JULY. OKAY. FOR THIS FISCAL YEAR. IT WAS A FIRST TIME OFFENDER. UH, IT WASN'T SOMETHING WE'VE SEEN AS A REPEAT, BUT IF WE GO BACK AND LOOK AT HISTORY, THERE HAS BEEN INSTANCES WHERE THEY'RE JUST LAID ON MAKING THEIR PAYMENTS. BUT I WOULDN'T SAY IT'S THE SAME OFFENDER. OKAY. THANK YOU. YEAH. OKAY. FOR BED TAX, A LITTLE BIT OF A DIFFERENT STORY, AGAIN, YOU'LL SEE THIS BIG SWING IN JUNE AND THEN A BIG UPTICK IN JULY. AGAIN, TALKING WITH RENEE, WHO'S PREPARING THE REPORTS AT THIS TIME AS WE THINK THERE WAS JUST SOME DELINQUENCY THAT WAS CAUSING THIS SWING. SO AGAIN, LOOKING AT THIS GRAPH TELLS A LITTLE BIT OF A DIFFERENT STORY FROM OUR SALES TAX. SALES TAX WAS HIGHER IN SEPTEMBER, BUT IF WE LOOK AT BED TAX SHOWS THAT IT WAS DOWN, UH, COMPARED TO HISTORICAL AVERAGES. OKAY. UH, LASTLY, JUST SOME KEY TAKEAWAYS. SO MODERATE GROWTH WITH CAUTION. US GLOBAL AND ARIZONA ECONOMY ECONOMIES ARE EXPECTED TO GROW MODERATELY, THERE ARE RISKS FROM INFLATION, CONSUMER SPENDING. AND AGAIN, I THINK THE BIG ONE HERE THAT'S IS A BIG UNPREDICTABLE IS GLOBAL HEADWINDS. SO WHAT WHAT IS BEING RECOMMENDED IS SEDONA PRUDENCE. YOU KNOW, LOCAL TOURISM DOES SUPPORT MUNICIPAL REVENUES. UH, WE'LL GET IN A LITTLE BIT LATER ON AFTER WE DO THE TOURISM UPDATE ON KIND OF OUR REVENUE PROJECTIONS AND GETTING COUNCIL, UH, PERSPECTIVE ON WHAT THEY'D LIKE TO SEE FOR, UM, REVENUE ESTIMATES THAT THEY'D LIKE TO RELEASE. SHIRLEY, DO YOU HAVE A, UM, SALES TAX YEAR TO DATE AND DO YOU HAVE SALES TAX YEAR TO DATE AND BED TAX? YEAR TO DATE SLIDE. WE, THE LATEST FILING WOULD BE OCTOBER AND THAT'S SUPPOSED TO BE RELEASED THIS WEEK. IT'S BEING WORKED ON RIGHT NOW. AND WE'RE HOPEFUL THAT, THAT, THAT WILL GET RELEASED THIS WEEK. WE DON'T HAVE IT IN THIS SLIDE DECK. THE LATEST WE HAVE IS SEPTEMBER. OKAY. THANK YOU. YEAH. OKAY. ANY OTHER QUESTIONS? THANKS STERLING. UM, ONE OF THE NUMBERS I'D BE INTERESTED [00:20:01] IN, AND I DON'T KNOW THAT YOU NEED TO PULL IT UP RIGHT NOW, BUT AT SOME POINT WHEN WE'RE TALKING ABOUT CAPITAL IS THE, UM, CONSTRUCTION COST INDEX THAT ENGINEERING NEWS RECORD OR WHATEVER PUBLISHES BECAUSE, YOU KNOW, THAT OBVIOUSLY IS TOTALLY DIFFERENT THAN THE CPI, RIGHT? 3%. AND UM, SO WHEN WE GET TO TALKING ABOUT THAT SIDE OF THE BUDGET, UM, BE GOOD TO KNOW WHAT OKAY. WHAT THAT'S BEEN. I'LL, I'LL HAVE THAT READY. OKAY. OKAY. IF NO ONE ELSE. THANK YOU EVERYONE. I THINK ANDREW MORNING COUNCIL STAFF AND THE PUBLIC, I'M EXCITED TO BE ABLE TO FOLLOW STERLING. I AM THE TOURISM MANAGER FOR THE CITY OF SEDONA, ANDREW GROSSMAN. IT'S REALLY NICE THAT WE'RE DOING KIND OF A HIGH LEVEL ECONOMIC AND THEN TYING INTO TOURISM. I THINK YOU'VE HEARD A LITTLE BIT FROM STERLING THAT TOURISM IS HUGE PART OF THE ECONOMY HERE IN SEDONA. AND THERE'S GONNA BE SOME OVERLAP BUT MAY BE FROM A DIFFERENT VANTAGE AND JUST KIND OF REINFORCE SOME OF THE POINTS THAT STERLING SHARED. UM, WE'VE GOT KIND OF FOUR TOPICS TO GO THROUGH, WHICH IS THE NATIONAL TOURISM MINISTRY TRENDS, UH, SOME OF THE CITY OF SEDONA PERFORMANCE DATA, SOME LIGHT REFLECTIONS, AND THEN GROUP, GROUP DISCUSSION IF WE HAVE QUESTIONS. SO STARTING WITH NATIONAL TOURISM TRENDS, UM, JUST SOME CONTEXT BEFORE I START SHOWING YOU SLIDES WITH GRAPHICS AND NUMBERS AND INFORMATION ON THEM. BUT, UM, OVERALL THE US HAD A GREAT START. AND I GUESS ACTUALLY ONE CLARIFIER IS EVERYTHING I'M GONNA TALK ABOUT IS CALENDAR YEAR TO DATE. I KNOW A LOT OF THE TIMES WE LOOK AT FISCAL YEAR WHEN WE LOOK AT OUR OWN SORT OF INTERNAL REPORTING, BUT I'VE STRUCTURED THIS TO BE CALENDAR YEAR FOR THIS PRESENTATION. UH, NOTABLY 'CAUSE THAT'S MOSTLY HOW A LOT OF OUR BUSINESSES IN THIS COMMUNITY REPORT. SO WANT TO KIND OF TAKE, TAKE THAT LENS. SO FROM A CALENDAR YEAR PERSPECTIVE, THE US TOURISM INDUSTRY HAD A GREAT START. JANUARY, FEBRUARY, YOU'LL SEE THAT WE HAD KIND OF A SIMILAR START. UH, INTERNATIONAL INBOUND TRAVEL STARTED TO GET IMPACTED IN KIND OF LATE FEBRUARY, EARLY MARCH. AND THAT'S BEEN A CONSISTENT TREND THROUGHOUT THE REMAINDER OF 25. CHANGES TO DOMESTIC TRAVEL, UM, OCCURRED PROBABLY IN LIKE LATE SPRING, EARLY SUMMER. UM, NOT QUITE THE SAME IMPACTS THAT I WOULD SAY WAS TO INTERNATIONAL INBOUND JUST CHANGES. UM, AND YOU'LL KIND OF SEE A LITTLE BIT OF THAT IN A SECOND. UM, AND THERE'S NOT ONE SINGLE NARRATIVE HERE RIGHT NOW. IT KIND OF COMES INTO WHAT STERLING SAID IF NO ONE'S MAKING A CALL THAT THERE'S A RECESSION OR NOT. SOME DESTINATIONS HAVE FARED BETTER THAN OTHER DESTINATIONS. SOME SECTORS WITHIN DESTINATIONS HAVE FARED BETTER. IT'S SOMETHING WE'RE REALLY CLOSELY MONITORING. BUT YOU'LL SEE A LITTLE BIT OF THAT. AND THEN ONE UNDERLYING PIECE IN THE NARRATIVE THAT I JUST WANNA CALL OUT 'CAUSE IT'S KIND OF INVISIBLE FROM WHAT I'LL BE PRESENTING TODAY, IS THAT WHEN WE REPORT ON REVENUES, RIGHT, WE'RE NOT REALLY REPORTING ON PROFITABILITY. SO WE KNOW THAT PRICES HAVE CONTINUED TO GO UP AND IF WE LOOK AT REVENUE AS A BELLWETHER OF HEALTH, THERE'S SOME UNDERLYING THINGS HERE RELATED TO THE PROFITABILITY OF THE BUSINESS COMMUNITY AS THEIR PRICES HAVE GONE UP AS WELL. UM, SO JUST AT A HIGH LEVEL, UM, TOURISM ECONOMICS IS ONE OF OUR RESEARCH PROVIDERS. AND, UH, OVERALL 2025, YOU KNOW, IT'S, IT'S BEEN RESILIENT IS REALLY WHAT THEY'VE BEEN SAYING ABOUT THE NATIONAL TOURISM INDUSTRY. TRAVELER SPENDING IS UP SLIGHTLY AGAIN, WE HAVE TO UNDERSTAND THAT INFLATION'S ALSO BEEN HAPPENING. AIR PASSENGERS ARE RELATIVELY FLAT. INTERNATIONAL INBOUND, AGAIN, THAT'S INTERNATIONAL TRAVEL TO THE US HAS BEEN THE MOST IMPACTED DOWN 7%. HOTEL DEMAND IS IN A NEGATIVE DECLINE RIGHT NOW. SLIGHTLY SHORT-TERM RENTALS ACROSS THE COUNTRY ARE GOING UP SLIGHTLY 5%. AND THEN CRUISE PASSENGERS HAVE GONE UP QUITE A BIT. UM, IT'S SOMETHING THAT I'VE BEEN HEARING A LOT ABOUT THAT IN MANY WAYS CRUISE IS BACK. NOT A GREAT THING FOR SEDONA TO HEAR ABOUT, BUT IT'S INTERESTING WHERE, UM, ONE OF THE REASONS WHY I THINK CRUISE IS BACK IS 'CAUSE PEOPLE ARE LOOKING FOR VALUE AND IN MANY WAYS EXPERIENCE. AND WHEN YOU BUY A CRUISE, YOU KIND OF KNOW WHAT YOU'RE GETTING INTO IN TERMS OF PRICE. UM, THAT'S NOT QUITE THE SAME AS YOU GO INTO OTHER TYPES OF TOURISM. TOURISM OPPORTUNITIES. UM, THIS IS KIND OF WHAT I WANNA SHARE WHEN IT COMES TO HOW, YOU KNOW, THE US STARTED OFF STRONG AND THEN STARTED TO SLIP SORT OF HALFWAY THROUGH THE YEAR. THIS IS REVENUE PER AVAILABLE ROOM ACROSS THE COUNTRY FROM UM, HOTELS. SO TRADITIONAL HOTELS, MOTELS. UM, AGAIN, YOU CAN SEE THAT REVPAR WAS UP, UM, PERCENTAGE POINTS YEAR OVER YEAR, JANUARY, FEBRUARY, MARCH, APRIL, MAY STARTED TO SORT OF LEVEL OUT. AND THEN, UM, SINCE JUNE NATIONALLY, REVENUE PER AVAILABLE ROOM CONTINUES TO GO DOWN YEAR OVER YEAR. UM, SORT OF WHAT STERLING ALLUDED TO, I'LL JUST WANNA SHARE IT FROM A, UH, HOTEL PERSPECTIVE IN REVPAR. SO THESE ARE DIFFERENT CLASSIFICATIONS OF LODGING TYPE WITH ECONOMY ON THE RIGHT AND LUXURY ON THE LEFT. YOU CAN THINK ABOUT BASICALLY HIGHER PRICES [00:25:01] ON THE LEFT, LOWER PRICES ON THE RIGHT, UM, AND THE LIGHTER COLOR THAT'S SORT OF LIKE, UH, THAT IS THE MONTH OF SEPTEMBER AND THE DARKER COLOR IS YEAR TO DATE. SO YEAR TO DATE WE'VE SEEN ECONOMY MIDSCALE, UPPER MIDSCALE AND UPSCALE GO DOWN NEGATIVE YEAR OVER YEAR. UM, WHERE LUXURY IS 2.9% OVER, UM, UPPER UPSCALE IS BARELY STAYING ABOVE WATER RIGHT NOW AS WE GET INTO SEPTEMBER. BUT WHAT I WANNA SHARE IS THAT SEPTEMBER'S LOOKING WORSE. SO YOU SEE THAT TREND OF AS WE'VE GOTTEN THROUGH HALF THE YEAR, WE'VE SEEN THE US TOURISM ECONOMY REALLY START TO SLIDE, SLIDE BACKWARDS AND WHERE, YOU KNOW, LUXURY HAS MAINTAINED ITS STRENGTH AND RESILIENCE. WE'RE SEEING UPPER UPSCALE START TO MAYBE BY THE END OF THIS CALENDAR YEAR, MAYBE, MAYBE SLIDE DOWN INTO THE NEGATIVE. SO AS MUCH AS LUXURY'S BEEN REMAINING RESILIENT IN THE LAST TWO TO THREE MONTHS, THAT STORY HAS STARTED TO CHANGE A TAD. CAN YOU GIVE US JUST SOME ILLUSTRATIVE EXAMPLES OF SOME HOTEL BRANDS WE FIND OUT AND LIKE WHAT HAS UPPER UPSCALE MM-HMM . UPSCALE UPPER BID? YEAH. UM, YOU KNOW, I DON'T HAVE A DIRECT COMPARISON TO SIT OTHER THAN I WOULD SAY SPECULATION HERE COUNSELOR. BUT YOU KNOW, LUXURY WOULD BE YOUR AMBIENTES, SORT OF YOUR ENCHANTMENTS. YOU KNOW, TYPICALLY THOSE WOULD BE LIKE THE INDEPENDENTLY OWNED BOUTIQUE HIGH END, UM, UPPER UPSCALE WOULD BE SORT OF LIKE THE HIGH END OF UM, SORT OF THE CHAINS I WOULD SAY. SO YOU WOULD GET, YOU KNOW, I THINK LIKE A SUNSET CHATEAU WOULD PROBABLY END UP THERE ACTUALLY. UM, IN THAT SPACE UPSCALE YOU'D PROBABLY SEE LIKE THE SKY ROCK SEDONAS, UM, MAYBE LIKE THE SKY RANCH LODGE. UM, AND THEN, YOU KNOW, YOU START TO GO DOWN DOWN FROM THERE. BUT I DON'T HAVE A DIRECT COMPARISON OF WHERE OUR HOTELS FIT INTO THIS SLIDE 'CAUSE THIS IS A NATIONAL SLIDE. UM, THIS IS ANOTHER VERSION OF THE K SHAPED, UM, ECONOMY THAT STERLING MENTIONED. BUT UM, MAYBE JUST FROM THE TOURISM VANTAGE AND FROM TRAVELER SPENDING. SO, UM, THIS CHART USES HAVER ANALYTICS, WHICH IS A PARTNER OF TOURISM ECONOMICS. UM, THIS IS RELATED TO DISCRETIONARY SPENDING BY INCOME. AND I WANT TO CLARIFY THAT DISCRETIONARY SPENDING IS ON ALL NON-ESSENTIAL GOODS AND SERVICES, WHICH IS TRAVEL, ENTERTAINMENT, RECREATION. NON-DISCRETIONARY SPENDING WOULD INCLUDE HOUSING, GROCERIES, HEALTHCARE. SO THAT'S NOT BEING SHOWN ON THIS SLIDE. UM, WHAT THIS IS SHOWING IS THAT THERE'S A CONTINUED DIVIDE IN CONSUMER SPENDING BEHAVIOR WHERE HIGHER INCOME HOUSEHOLDS CONTINUE TO INCREASE THEIR SPENDING ON NON-ESSENTIALS. WHILE LOWER INCOME HOUSEHOLDS HAVE PULLED BACK AS ESSENTIALS HAVE TAKEN UP MORE OF THEIR BUDGETS COMPARED TO 2019 LEVELS, THE BOTTOM 20% EARNERS ARE STILL DOWN WHILE THE TOP 20% EARNERS ARE ABOVE 2019 LEVELS. UM, JUST NOTE THOUGH, THAT, YOU KNOW, THEY ARE ALL IN A BIT OF AN UPTICK, WHICH IS INTERESTING TO SEE, BUT IT'S A DIFFERENT STORY BEING TOLD DEPENDING ON INCOME LEVEL RIGHT NOW THIS IS DOMESTIC AIR TRAVEL. UM, AGAIN YOU CAN SEE IN THE BLUE AND THE NEGATIVE THAT IS INTERNATIONAL INBOUND JUST TO SORT OF AGAIN DRIVE, DRIVE, DRIVE THAT POINT HOME. AND THEN, UM, THIS IS DOMESTIC AT THE TOP AND JUST A QUOTE FROM UNITED AIRLINES THAT, YOU KNOW, WE'RE LOOKING FORWARD TO SEEING HOW THE FOURTH QUARTER OF THE CALENDAR YEAR PLAYS OUT. AGAIN, I'LL ALLUDE TO THAT ON MY LAST SLIDE AS WE GET INTO REFLECTIONS. UM, AS YOU KNOW, THAT WILL REALLY HELP US UNDERSTAND HOW 2025 ENDS. UH, JUST AGAIN, LOOKING AT OVERSEAS, UH, YOU KNOW, THIS IS A OCTOBER TO OCTOBER, SO THIS IS BEYOND THE CALENDAR YEAR, UM, WHERE, YOU KNOW, OVERSEAS WAS DOING VERY WELL. UM, WE WERE REALLY PROJECTED TO BE BACK TO PRE COVID LEVELS, I BELIEVE BY 2026. UM, THAT'S NO LONGER THE CASE AND I'LL KIND OF SHOW THAT ON THE NEXT SLIDE FOR INTERNATIONAL. UM, BUT YOU CONTINUE TO SEE, YOU KNOW, SINCE MAY REALLY IT STARTED IN, YOU KNOW, MARCH, APRIL SAW A QUICK UPTICK AND THEN IT'S BEEN DOWN EVER SINCE. CANADA'S BEEN THE MOST IMPACTED. UM, IT'S DOWN, YOU KNOW, 30% IN LAND AND 23% IN IN AIR AS FAR AS OCTOBER GOES. UM, I DID HAVE TOURISM ECONOMICS PULL THE ARIZONA NUMBERS FOR US. UM, ARIZONA IS DOWN JUST UNDER 20% IN CANADIAN VISITATION SO FAR THIS CALENDAR YEAR. UM, AGAIN, WE'RE REALLY LOOKING TO SEE WHAT WILL HAPPEN THIS WINTER SPECIFICALLY IN ARIZONA WHEN IT COMES TO THE SNOWBIRDS THAT HAVE TRADITIONALLY COME HERE. SO THIS WILL BE SORT OF THE NEXT, YOU KNOW, THREE TO FOUR MONTHS IN ARIZONA WILL HELP US UNDERSTAND HOW MUCH THE CAN CANADIAN MARKET HAS BEEN IMPACTED. UM, COMING UP. UM, AND THEN COMING BACK TO THE FORECAST, THIS ONE'S A LITTLE TINY TO SEE BUT BASICALLY, YOU KNOW, WE HAD A MUCH MORE OPTIMISTIC INTERNATIONAL INBOUND RECOVERY UP UNTIL THIS YEAR AND THAT'S NOW BEEN PUSHED BACK OUT [00:30:01] TO 2029. SO WE'VE SORT OF HAD TO RESET THE CLOCK ON GETTING OUR INTERNATIONAL INBOUND BACK TO WHERE IT WAS BEFORE COVID. SO I'M GONNA MOVE INTO SOME UM, CITY OF SEDONA PERFORMANCE DATA. AGAIN THAT WAS HIGH LEVEL KIND OF US TRENDS. WANNA BRING US DOWN INTO THE SEDONA TRENDS. UM, WHAT I'VE GOT FOR YOU TODAY IS A QUICK UPDATE ON PHOENIX SKY HARBOR. I'VE GOT SOME LODGING PERFORMANCE DATA, WHICH WILL COINCIDE WITH SOME TRAFFIC COUNTS THAT WE GET FROM ADOT. I'VE GOT SOME CREDIT CARD DATA. UM, I WILL ALSO BE PRESENTING ON CITY AND SALES TAX DATA THROUGH THE LENS OF THE TOURISM INDUSTRY. AND THEN, UM, WE HAVE OFFICIALLY BEGUN TO EXECUTE ON OUR QUARTERLY TOURS AND PERFORMANCE AND OUTLOOK SURVEY. WE DID THE ONE IN JULY THAT I KNOW I SHARED WITH COUNCIL BEFORE WE MADE THE SPECIAL MEETING WITH THE REQUEST FOR THE SUMMER CAMPAIGN. WE'VE NOW EXECUTED OUR FIRST OFFICIAL ONE, SO I'VE GOT SOME JUST LIGHT LIGHT RESULTS FROM THAT AS WELL. UH, JUST TO GROUND US IN ARIZONA REAL QUICK. SO PHOENIX SKY HARBOR YEARLY TOTAL PASSENGERS. UM, WE ARE NEGATIVE 1.5% BEHIND LAST YEAR IN ARRIVALS TO SKY HARBOR. SO THIS IS TOTAL ARRIVALS DOMESTIC INTERNATIONAL. SO, UM, THAT'S NICE TO SEE THAT THAT'S NOT DIPPED A LOT, BUT IT ALSO SLIGHTLY BEHIND WHERE IT WAS THIS TIME LAST YEAR. UM, AGAIN, WE'RE WAITING TO SEE HOW THE REST OF THE YEAR LINES UP WITH THE, YOU KNOW, Q4 HOLIDAY TRAVEL. HERE IS OUR SMITH TRAVEL RESEARCH FOR THE CALENDAR YEAR. AGAIN, THIS IS A STUDY AREA THAT IS SLIGHTLY BIGGER THAN THE CITY OF SEDONA. WE'VE GOT, UM, SOME NON-CITY PROPERTIES IN THE STUDY AREA, BUT IT IS THE BEST WE HAVE FOR AT LEAST SMITH TRAVEL WHEN IT COMES TO OCCUPANCY A DR REVPAR SUPPLY. UM, CALL OUTS ON THIS SLIDE IS THAT, YOU KNOW, DEMAND IS DOWN 6.2% CALENDAR YEAR SO FAR IN THE SMITH TRAVEL RESEARCH STUDY AREA. UM, WE HAVE SEEN CHANGES TO SUPPLY THROUGHOUT THE YEAR. NOTABLY THE CLIFFS HOTEL WAS NOT OPERATING FOR THE FIRST FEW MONTHS OF THE YEAR. THAT IS NOW A PART OF LEBERT. AND THEN POCO DIABLO'S BEEN, UM, CLOSED FOR RENOVATIONS SINCE JUNE. SO THAT'S WHY SUPPLY IS DOWN THE WAY THAT IT IS THERE, WHICH AGAIN IS MADE OCCUPANCY. HAD THOSE HOTELS BEEN OPEN THE WHOLE YEAR, OCCUPANCY WOULD BE HIGHER ESSENTIALLY, OR SORRY, IT WOULD BE EVEN LOWER THAN IT IS IN THIS, IN THIS CHART. AND IT'S SOMETHING WE'VE REFLECTED ON A LITTLE BIT INTERNALLY WHEN IT COMES TO, YOU KNOW, LET'S JUST TAKE THE CLOSURE OF POCA DIABLO TEMPORARILY, UM, IN A VACUUM THAT DEMAND WOULD STAY IN THE CITY, BUT WE DON'T LIVE IN A VACUUM. AND I THINK PART OF THAT DEMAND PROBABLY STAYED IN THE CITY, BUT PART OF IT MIGHT'VE GONE DOWN TO THE VILLAGE OF OAK CREEK. I'LL NEVER KNOW THE ANSWER TO THAT, BUT I WOULD SAY THAT THAT'S JUST SOMETHING TO LOOK AT WHEN WE LOOK AT THE BED TAX IS THAT, YOU KNOW, THAT IS PART OF THE VARIABLE SET THAT I WOULD SAY IS CONTRIBUTING TO A DECREASE IN IN THE BED TAX. BUT IT'S JUST ONE SMALL REASON THAT I'LL NEVER BE ABLE TO REALLY POINT TO. UM, WE HAVEN'T RELEASED THE NOVEMBER DATA YET, BUT I DO JUST WANT TO GIVE YOU SOME QUICK INSIGHTS INTO THE WEEKLY DATA FOR NOVEMBER. UM, ONE REASON WHY I DON'T TYPICALLY TALK ABOUT THE WEEKLY DATA IS THE MONTHLY DATA RECONCILES EVERYTHING. SO IT'S SORT OF LIKE THE FINAL VERSION OF THE, OF THE NOVEMBER DATA. BUT I WILL JUST CALL OUT FROM A DIRECTIONAL STANDPOINT, DEMAND REMAINS DOWN THROUGHOUT THE MONTH OF DECEM NOVEMBER. UM, I WILL SAY THAT THAT BOTTOM ONE, THAT NEGATIVE 1.2 IS FOR THANKSGIVING WEEK. SO IT'S NICE TO SEE THAT. IT SOUNDS LIKE WE HAD A PRETTY STRONG THANKSGIVING WEEK HERE, BUT LEADING UP TO THANKSGIVING WE WERE DOWN, YOU KNOW, NEGATIVE 4.1 IN DEMAND, THE FIRST WEEK NEGATIVE 5.1, THE SECOND WEEK, NEGATIVE 7.5 AND I'VE JUST CONTINUED TO SEE DEMAND SLIDING IN THE SMITH TRAVEL RESEARCH STUDY AREA. UM, BUT AGAIN, REVENUES HAVE NOT BEEN IMPACTED AS MUCH BECAUSE WE'VE SEEN HOTEL A DR INCREASE, YOU KNOW, MORE THAN 10% DURING THAT TIME PERIOD. SO YOU'VE GOT A SITUATION WHERE LESS PEOPLE ARE SPENDING MORE MONEY ON THEIR HOTEL ROOMS, WHICH IS KEEPING REVENUES RELATIVELY FLAT OR IN A STRONGER PLACE THAN THEY WOULD'VE BEEN AT THE HOTELS. UM, BUT I'LL JUST NOTE THAT YOU KNOW, WE ARE SEEING LESS PEOPLE IN THE HOTELS. I WANTED TO ALSO REFLECT AS I WAS GOING THROUGH THIS, SOME OF THE SLIDES I HAVE ARE REFLECTIONS. IT'S NOT ALL JUST KIND OF UPDATES ON WHERE WE'RE AT RIGHT NOW, BUT UM, I WANTED TO LOOK AT, OKAY, IN OUR KIMLEY HORN VISITATION STUDY, 2021 WAS THE HIGH WATERMARK OF THE YEARS THAT WE LOOKED AT. SO LET'S LOOK AT, YOU KNOW, HOW DOES 2021 COMPARE TO 25 YEAR TO DATE BASICALLY. UM, AND THIS WOULD BE, YOU KNOW, HOTEL DEMAND. AND WHAT WE SEE IS THAT WE SAW REALLY STRONG GROWTH, 35%, [00:35:02] 32%, UM, IN HOTEL DEMAND OVER THESE LAST FOUR YEARS. UM, AND THAT I THINK IS A NICE THING TO SEE FROM A TOURISM PROGRAM LENS. WE'VE BEEN REALLY TRYING TO GROW THE WINTER TOURISM SEASON AND I THINK THAT, YOU KNOW, WE STARTED THIS YEAR WITH THAT BEING I THINK PART OF THE STORY. UM, AND THEN OBVIOUSLY WE STARTED TO SEE THE DECREASES OCCUR UM, IN THAT SORT OF LATE SPRING SUMMER TIME PERIOD. UM, ONE NOTE TOO IS THAT UM, WITH NO, SORRY, NOT THE RIGHT SLIDE, KEEP GOING. AND THEN WE'VE GOT, UH, TRAFFIC COUNTS. SO THIS LOOKS AT, UH, VEHICLE VOLUMES GOING FROM A TICKER, IT'S AT DIFFERENT DISTANCES GOING INTO THE Y ON OUR THREE ROADWAYS. UM, WE CONTINUE TO SEE VOLUME GROWTH ON 89 A ON COOKS, COOKS HILL AND KIND OF JUST C VOLUME DECREASES SINCE MAY ON THE OTHER ROADWAYS. BUT OVERALL SINCE MAY WE'VE SEEN A 5% INCREASE IN VEHICLE VOLUME. UM, WITH AGAIN THAT GROWTH BEING ON THE COOKS HILL COUNTER, SORRY. AND THEN, UM, I TYPICALLY WOULD BE PRESENTING SHORT-TERM RENTAL DATA. UM, UNFORTUNATELY THERE WAS A RECONCILIATION THAT OCCURRED BETWEEN KEY DATA AND TOURISM ECONOMICS IN THE LAST WEEK OR SO. UM, SO THE SLIDES THAT I PUT INTO THE DECK ARE NOT CORRECT, SO I DID NOT WANT TO PRESENT THEM TODAY, BUT THE STORY THAT I WOULD WOULD'VE SHARED ON THAT SLIDE IS SIMILAR TO WHAT I'VE BEEN SHARING THROUGHOUT THE YEAR THAT HOTELS ARE BEING IMPACTED MORE THAN SHORT-TERM RENTALS OR SHORT-TERM RENTALS TYPICALLY ARE PERFORMING BETTER IN THE DATA THAT WE SEE. UM, BUT JUST KNOW THAT WE'RE WORKING TO SHORE UP THAT INFORMATION AND GET YOU THAT UPDATED IN OUR NEXT SORT OF MONTHLY RESEARCH REPORT. UM, BUT YOU'LL SEE A SIMILAR STORY WHEN I START GETTING TO THE SALES AND BED TECH. SO, UM, AND THEN JUST 'CAUSE WE HAVE IT, I WANTED TO SHARE OUR UM, VISA SPENDING MARKETS. SO THIS IS A NEW DATA FEED THAT WE GOT FROM VISA, GIVE OR TAKE 50% OF TOTAL CARD SWIPES. UM, THIS SHOWS YOU THE MARKETS THAT ARE SPENDING THE MOST MONEY IN SEDONA AND OVER THE LAST CALENDAR YEARS THERE HAS NOT BEEN A BIG SHIFT IN THIS. YOU'VE GOT, YOU KNOW, THE PHOENIX, PHOENIX METRO, THE VALLEY AS THE TOP PRESCOTT VALLEY PRESCOTT, UM, THAT INCLUDES US LIKE YAVAPAI COUNTY AS WELL IS IN THERE. SO THAT'S SORT OF THAT KIND OF LOCAL, LOCAL SPEND. LA NEW YORK, CHICAGO, SAN DIEGO, TUCSON FLAG, SAN FRANCISCO AND SEATTLE. UM, THE THING THAT WE'VE REFLECTED ON IS THAT OUTSIDE OF PRESCOTT VALLEY AND FLAGSTAFF, WHICH I WOULD ARGUE WE'RE SORT OF AT OUR IN MARKET, SO WE DO, WE WE DO COMMUNICATE WITH THEM. UM, ALL OF OUR KEY CAMPAIGN MARKETS ARE ON THIS SLIDE, AT LEAST IN THE TOP 10. SO THAT'S SORT OF ONE OF THE ACKNOWLEDGEMENTS I WANTED TO SHARE. SO MOVING INTO CITY SALES AND BED TAX, I THINK YOU'VE PROBABLY HEARD ALLUSIONS TO IT, BUT I'VE BEEN WORKING REALLY CLOSELY WITH THE FINANCE TEAM, SPECIFICALLY WITH RENEE AND JESSICA TO LOOK AT THE CITY SALES AND BED TAX THROUGH THE LENS OF TOURISM PERFORMANCE. UM, I SPENT A LOT OF TIME LOOKING AT THE HOTEL AND LODGING AND BED AND THEN WE'VE STARTED TO, YOU KNOW, OPEN UP THE LAYERS AT LEAST FOR ME, UM, WITH SOME OF THE OTHER SECTORS I'VE GOT A LOT MORE TO TALK ABOUT WHEN IT COMES TO KIND HOTEL AND LODGING. BUT JUST KNOW THAT THAT HAS KIND OF BEEN AN UM, A NEW INSIGHT THAT WE'RE GETTING. UM, AND I THINK WHAT'S INTERESTING FOR ME ON THIS ONE AND IT'S, YOU KNOW, I'VE ALWAYS BEEN PRESENTING THE PACING DATA THROUGH SMITH TRAVEL AND KIND OF KEY DATA AND THIS GIVES US AN OPPORTUNITY TO REALLY SHORE UP AFTER THE FACT. WHAT DO WE SEE IN THE PACING VERSUS WHAT DO WE SEE IN THE ACTUAL REMITTANCE? UM, SO YOU'RE GETTING SOME INSIGHTS INTO THAT TODAY. JUST KNOW THAT WE'RE GONNA KEEP GETTING BETTER INSIGHTS INTO THIS UM, AS WE KEEP GOING. THIS MIGHT HAVE BEEN THE SLIDE YOU WERE ASKING FOR, BUT YEAH, . UM, SO THIS IS CALENDAR YEAR TO DATE SALES AND BED TAX. UM, WE ARE UP, AND AGAIN THIS IS NOT FISCAL YEAR, THIS IS CALENDAR YEAR. I JUST WANT TO KINDA CONTINUE TO CLARIFY THAT. SO WE ARE UP 2% CALENDAR YEAR IN SALES TAX AND WE ARE DOWN 2% CALENDAR YEAR IN BED TAX. UM, I KNOW STERLING KIND OF CALLED IT OUT, BUT YOU KNOW, YOU'VE GOT THIS JUNE JULY WAS WHEN WE IDENTIFIED SOME DELINQUENT PAYMENTS. THAT'S WHY THOSE ARE, YOU KNOW, SORT OF, YOU KNOW, NOT RELEVANT FOR THIS DISCUSSION 'CAUSE THEY SORT OF WASH EACH OTHER OUT. BUT I WANTED TO LOOK AT WHAT DOES THE ACTUAL LIKE EXTENSION LOOK AND WE'RE REALLY LOOKING AT THINGS AT LEAST ON A QUARTERLY BASIS NOW AS WE START TO SEE THE DELINQUENT PAYMENTS NORMALIZE ACROSS MONTHS. YES. SO THE REASON I WAS ASKING FOR THAT BECAUSE I NOTICED FROM STERLING'S PRE, [00:40:06] I NOTICED FROM STERLING'S PRESENTATION IT IS ON BUT SCREEN IS THAT BETTER? THAT WAS, YEAH. OKAY, HERE WE GO. I NOTICED THAT IN STERLING'S PRESENTATION THAT SALES TAX WAS UP AND BED TAX WAS DOWN. SO MY QUESTION IS, FEWER PEOPLE ARE COMING HERE BUT THEY'RE SPENDING MORE MONEY HERE OR I MEAN THAT COULD BE ONE THING, RIGHT? MM-HMM OR ARE LOCALS SPENDING MORE MONEY WHERE WE'RE GETTING SALES TAX? DO YOU HAVE ANY INSIGHT INTO THAT AT ALL? I DON'T HAVE ANY INSIGHT INTO THAT TODAY. UM, WE MIGHT GLEAN SOME INSIGHTS AS I, AS I KEEP MOVING ON SOME SLIDES. UM, I THINK, YOU KNOW, PART OF WHAT I SAID BEFORE IS THAT PRICES HAVE JUST GONE UP ACROSS THE BOARD. UM, AND YOU KNOW, YOU'LL SEE THAT RESTAURANT BAR IS UP. UM, AND I DO THINK THAT'S BECAUSE OF FOOD PRICES HAVE GONE UP, RIGHT? SO YOU COULD HAVE LESS PEOPLE SPENDING MORE MONEY ON FOOD FOR EXAMPLE, UM, YOU KNOW, WITHIN RETAIL IT'S GOT GROCERY STORES, IT'S GOT ONLINE SALES, IT'S GOT WHAT WE WOULD CONSIDER TRADITIONAL RETAIL. UM, SO THOSE ARE ALL WITHIN THAT, WITHIN THAT CATEGORY AND THAT'S WHAT WE'RE STARTING TO ANALYZE DEEPER. NOW WHAT STERLING MENTIONED IS WE HAVE LIMITATIONS ON WHAT WE CAN REPORT PUBLICLY, UM, WITHIN THOSE DIFFERENT CATEGORIES. AND THAT'S WHAT WE'RE TRYING TO UNDERSTAND FIRST AND FOREMOST. SO I THINK AGAIN, WE'LL HAVE MORE INSIGHTS INTO THAT AS WE GO. I MAY OR MAY NOT BE ABLE TO PUBLICLY REPORT THEM. UM, BUT THAT'S WHAT I'M COMMITTED TO FINDING OUT IS, YOU KNOW, AS WE GET DEEPER INTO THIS WITH OUR INTERNAL REVIEW, YOU KNOW, ARE THERE SOME BIGGER ANSWERS. BUT I DO THINK THAT PRICES HAVE GONE UP AND I THINK THAT'S PROBABLY A BIG CHUNK OF WHAT, OF WHAT WE HAVE TO SAY. SO, OKAY, THANK YOU. I DIDN'T CHANGE IT, SO IS THAT GOOD? YEAH, IT'S GOOD. JUST CURIOUS. UM, WE HAVE A SEGMENT OF OUR POPULATION WHICH ARE PART-TIMERS, RIGHT? SO THEY COME IN VARIOUS TIMES OF THE YEAR. WE CAN'T ALWAYS KNOW, WE ASSUME THEY'RE COMING IN THE SAME TIME AS OUR HIGH SEASON, BUT THAT MIGHT MIGHT NOT BE TRUE. BUT WHEN THEY DO COME IN, DO WE HAVE ANY IDEA WHETHER WHAT THEIR IMPACT IS? SO WHEN I LOOK AT JULY AND A 13% INCREASE IN SALES TAX AND I THINK ABOUT THE COST OF GROCERIES GOING UP, I THINK ABOUT IS THAT WHEN WE'RE LOOKING AT, YOU KNOW, OUR PART-TIMERS SOMEHOW STOCKING UP TO COME IN IN AUGUST. SO WHETHER THEY'RE DOING IT OR THEIR PROPERTY MANAGERS ARE DOING IT OR WHOEVER'S DOING IT, WHETHER OR NOT WE'RE LOOKING AT SOME IMPACT HERE, IS THERE ANY WAY FOR US TO UNDERSTAND THE IMPACT OF THE PEOPLE WHO LIVE HERE PART-TIME WHERE WE'RE WE ARE THEIR SECOND OR THIRD HOME? BECAUSE I WOULD SAY WHAT YOU'RE SEEING IN JULY AND JUNE IS THE HOTEL BED DELINQUENT PAYMENT. SO THAT'S THE SAME ON SALES TAX. YEAH, ON SALES TAX. BECAUSE WE DO COLLECT 3.5% IN HOTEL MOTELS. SO THAT WAS, AND THAT'S NOT BED TAX, BUT IT'S COMING FROM THE SAME PROPERTIES THEY HAVE TO PAY. I SEE. THEY HAVE, THEY HAVE TO PAY BOTH. SO THAT, THAT'S SPECIFIC ONE I WOULD SAY IS PART OF THAT ANOMALY THAT WE SAW IN JUNE AND JULY. UM, AND THEN MY DIRECT RESPONSE WOULD BE THAT AT THE MOMENT WE ARE NOT ABLE TO UNDERSTAND WHEN SECOND LIFE IT'S A DIFFERENCE TO REALLY DIVIDE THAT OUT. UM, THE BEST WE'RE GONNA BE ABLE TO DO, AND I HOPE TO HAVE THIS IN KIND OF EARLY 26, IS THE VISITOR VERSE RESIDENT SPENDING RATIO. UM, THAT'S PROBABLY GONNA BE THE MOST GRANULAR WE'RE EVER GONNA GET. HOW DO WE CALCULATE RESIDENT THAT? YEAH, THAT'S GONNA BE DONE WITH AN ECONOMICS FIRM CALLED DEAN RUN ASSOCIATES. UM, THAT'S WORKING ON A VISIT. THAT'S THE ECONOMIC IMPACT OF THE VISITOR ECONOMY IN SEDONA. AND THAT'S THE REPORT THAT WE ARE WORKING ON FINALIZING RIGHT NOW. OKAY. SO WE DON'T HAVE THAT INFORMATION'S NO WAY TO UNDERSTAND HOW THEY'RE DEFINING WHO'S A VISITOR AND WHO'S OH YEAH. A PART-TIME IT'S GONNA A PART-TIME RESIDENT 'CAUSE THEY ALSO COME IN SEASONALLY. I UNDERSTAND. OKAY. ALRIGHT, THANK YOU. UM, I KNOW THERE'S BEEN A QUESTION FOR A WHILE OF WHAT IS THE SHORT TERM RENTAL MARKETS CONTRIBUTION TO THE BED TAX REVENUE TOTAL? UM, YOU KNOW, SINCE WE'VE SEEN SHORT-TERM RENTALS COME ONLINE, YOU KNOW, WE'VE SEEN OUR BED TAX INCREASE QUITE A BIT. UM, AND YOU KNOW, I THINK, THINK KURT, YOU, YOU CAN CORRECT ME IF I'M WRONG, BUT I THINK IT WAS SEPTEMBER, 2019 IS WHEN WE STARTED COLLECTING BED TAX AT, AT THE SHORT TERM RENTALS, UM, JUST TO BRING US BACK THERE. BUT UM, WORKING WITH THE FINANCE TEAM, WE WERE ABLE TO ESSENTIALLY ISOLATE OUT THE HOTELS, THE TIMESHARES [00:45:01] AND THE ONLINE TRAVEL AGENTS, WHICH IS EXPEDIA, BOOKING PRICE LINE, THOSE THE BROKERS OF THE TRANSACTION AND THEN ISOLATE OUT, YOU KNOW, THE BROKERS AT THE SHORT TERM RENTAL TRANSACTIONS, THE AIRBNBS, THE BBOS, AND THEN THE SHORT TERM RENTAL OWNERS. SO WE BASICALLY JUST SPLIT THE BED TAX IN, IN, IN HALF. UM, AND WHAT WE SEE FROM A CALENDAR YEAR PERSPECTIVE IS THAT UM, 60% OF THE BED TAX CALENDAR YEAR TO DATE HAS BEEN PAID VIA ONLINE TRAVEL AGENTS, HOTELS AND TIMESHARES. AND 40% OF THE BED TAX REMITTANCE HAS COME FROM THE SHORT TERM RENTAL LISTING BROKERS AS WELL AS THE SHORT, SHORT-TERM RENTAL PROPERTIES THEMSELVES. SO WHAT'S INTERESTING IS THAT IT'S NOT, I KIND OF LOOK AT THAT JANUARY ONE WHERE YOU SEE THAT SHORT-TERM RENTALS WERE 56% AND HOTEL TIMESHARE WERE 44. UM, YOU KNOW, THAT KIND OF SHOWS DURING A SLOWER TIME, SHORT-TERM RENTALS SORT OF MIGHT BE TAKING OVER SOME OF THAT MARKET SHARE. AND THEN DURING HIGH SEASONS OF, YOU KNOW, MARCH, APRIL, MAY, YOU REALLY SEE THE HOTELS AND TIMESHARES TAKE OVER DURING THAT TIME AND BE UPWARDS OF, YOU KNOW, TWO THIRDS OF THE TOTAL. SO IT'S INTERESTING TO SEE HOW THAT FLUCTUATES, UM, THROUGHOUT THE YEAR. UM, AND JUST HAPPY TO HAVE A BE AT THE POINT OF THE SALES AND BED TAX ANALYSIS THAT WE'RE AT TO GET YOU, I THINK A NUMBER YOU'VE BEEN ASKING FOR, FOR QUITE A WHILE, ANDREW, SOMETIMES THE, UH, TIMESHARE FOLKS ACT LIKE SHORT TERM RENTALS. IS THAT FILTERED OUT OF THE DATA? SO, UM, IN THIS DATA SET COUNSELOR, WE ONLY SEE THE SALES THAT TRIGGERED A BED TAX SITUATION. SO IF IT'S OWNER OCCUPIED, THERE'S A DIFFERENT TAX STREAM THAT COMES THROUGH THE, COMES THROUGH THE TIMESHARES. UM, WE DON'T SEE THAT IN OUR SALES AND BED TAX. I DON'T BELIEVE IT'S A DIFFERENT, IT'S A DIFFERENT TYPE OF TAX REVENUE. UM, WE'RE TRYING TO UNDERSTAND IF THAT, LIKE THAT'S ANOTHER THING I'M LOOKING INTO, IS THERE ANYTHING WE CAN GLEAN FROM OCCUPANCY ON THAT REALM, BUT WE'RE ONLY SEEING THE ROOMS THAT GET SOLD ON THE OPEN MARKET VIA, YOU KNOW, DIRECT SALES OR TYPICALLY THROUGH AN ONLINE TRAVEL AGENT LIKE AN EXPEDIA OR, OR A BOOKING OR ALSO COULD ALSO BE DONE THROUGH AIRBNB AND VRBO. SO, UM, WE'VE ALSO BEEN LOOKING AT HOW, SORRY, IT'S ALL, SO MY, UM, MY QUESTION ACTUALLY GOES BACK TO KIND OF WHAT PETE SAID. SO ONE OF THE, ONE OF THE ISSUES WITH SHORT TERM RENTALS IS THAT THE OWNERS DO COME AND OCCUPY THEM AND MAYBE MORE FREQUENTLY THAN A TIMESHARE OWNER'S GONNA COME AND OCCUPY A TIMESHARE. SO WE WOULD HAVE THE SAME ISSUE WITH THAT AS WELL THEN, RIGHT? BECAUSE TECHNICALLY IT WOULDN'T BE ON THE MARKET FOR THAT PERIOD OF TIME AND BARBARA'S DYING TO ANSWER DEPENDING ON ANDREW WAS SAYING, YOU KNOW, WE'RE, WE'RE TRACKING LIKE VRBO AND AIRBNB AND THEN WE HAVE LIKE EXPEDIA AND THOSE THINGS. SO THE HOTELS, WHEN TIMESHARES ARE TREATED LIKE A HOTEL, IT'S GONNA SHOW UP ON THE HOTEL PART OF IT, LIKE EXPEDIA DIRECT SALES, WHATEVER THE SHORT TERM RENTAL ONES, IF THEY IT, IT WILL SHOW UP IN THAT STREAM IF THEY'RE POSTING IT ON VRBO OR AIRBNB. UM, WE PROBABLY CAN'T DETERMINE ON A DIRECT SALE BASIS IF THEY ARE UM, DOING LIKE A, A SHORT TERM RENTAL STYLE. I MEAN I GUESS THAT'S KIND OF A HARD, YOU KNOW, DIFFERENCE LIKE WHEN IS IT A SHORT TERM RENTAL VERSUS WHEN IS IT A HOTEL ROOM? I GUESS YOU COULD ARGUE THAT SOME OF THEM, BECAUSE THEY'RE TIMESHARES AND THEY HAVE KITCHENS, MAYBE THEY'RE REALLY SHORT TERM RENTALS, BUT I THINK JUST BEING ABLE TO PULL THEM OUT IS REALLY HUGE. AND I ALSO WANTED TO, I THINK HIS POINT THAT IT'S A DIFFERENT TAX WHEN IT'S OWNER OCCUPIED BASICALLY WE'RE NOT COLLECTING BED TAX AT THAT POINT SO WE WOULDN'T EVEN SEE IT IN THERE. SO IT'S POSSIBLE THAT OVER TIME WE'LL BE ABLE TO TRACK UM, SORT OF THE OCCUPANCY TRENDS AND LIKE WHEN IT'S BEING RENTED VERSUS NOT. AND THE ASSUMPTION AT THAT POINT WE WOULD HAVE TO MAKE IS MAYBE IT'S OWNER OCCUPIED AT THAT POINT OR IT'S VACANT, WHO KNOWS FOR WHATEVER OTHER REASON. BUT THAT WOULD BE SOMETHING THAT HOPEFULLY AS WE GET BETTER AT ANALYZING ALL OF THIS DATA AND IT IS HUGE HAVING ANDREW WORKING WITH RENEE AND JESSICA BECAUSE WE ARE LEARNING A LOT MORE ABOUT THE TRENDS AND THE DATA, [00:50:01] UM, WE'RE JUST SEEING A LOT MORE. AND I DID WANNA POINT OUT THAT THE SHORT TERM RENTAL DATA THAT WE'RE GIVING IS BECAUSE WE FINALLY HAVE MORE THAN 10 REPORTING ENTITIES. SO THAT'S WHY A QUICK QUESTION FOR ROXANNE. ROXANNE, DO WE HAVE FLOW DATA BY BASINS OR ANYTHING FOR WASTEWATER THAT WOULD HELP WITH NO, WE JUST HAVE ONLY AT THE PLANT, SO OKAY, WELL MAYBE IN THE FUTURE, HUH? WE DEFINITELY SEE INCREASES IN . DO WE LIKE MAYBE IN THE FUTURE THINK WE MIGHT INSTALL FLOW METERS IN DIFFERENT PARTS OF THE CITY TO WELL WE HAVE LIKE WE HAVE OUR METERS ALL OUR SO BUT WE DON'T HAVE IT MONITOR THAT. I JUST THINKING HELP . SO WE COULD AT OUR THREE MAJOR LIFT STATIONS, WHICH IS OVER UP BY BREWER ROAD, THAT WOULD COLLECT THE WHOLE EAST SIDE OF TOWN AND UPTOWN. UM, WE HAVE OUR METERS SO WE KNOW HOW MANY HOURS PER DAY OUR PUMPS RUN AND THEN WE COULD CALCULATE LIKE A FLOW RATE THAT CAME IN THERE. WE COULD DO THAT AT CARROLL CANYON AS WELL AND AT EL CAMINO, BUT I DON'T KNOW THAT IT WOULD, YEAH, I DON'T, I DON'T THINK IT WOULD BE CONDENSED ENOUGH TO KNOW WHERE THESE PEOPLE ARE. AND COUNCIL DON, I THINK YOU MIGHT'VE ALSO BEEN ASKING IF, YOU KNOW, LET'S JUST HYPOTHETICALLY SAY I OWNED A HOUSE IN SEDONA, WHICH I DON'T YET, BUT LET'S HYPOTHETICALLY SAY I DID AND I WAS GONNA GO AWAY FOR TWO MONTHS AND THEN I WAS TO PUT THAT ON THE OPEN MARKET AS AN AIRBNB. UM, YOU KNOW, YOU WOULDN'T SEE A REVENUE GENERATION FROM THE 10 MONTHS THAT I WAS LIVING IN THAT HOUSE, BUT THEN YOU WOULD SEE A REVENUE GENERATION FOR THE TWO MONTHS THAT I WASN'T. UM, SO THAT'S KIND OF WHAT WE'RE PRESENTING IS WHEN WE SEE OPEN MARKET SALES RELATED TO VISITORS COMING, BUT UM, WE DON'T REALLY EVER KNOW WHEN THINGS ARE OWNER OCCUPIED OR NOT. SO THAT EXACTLY WAS KIND OF MY POINT. SO FOR IN SOME CASES WITH SHORT TERM RENTALS OR TIMESHARES, YOU HAVE THE ADDED, UM, COMPLEXITY SHALL WE SAY, OF THE FACT THAT THE NUMBERS OF THE NUMBERS COULD DROP, WHICH SOUNDS LIKE FEWER PEOPLE ARE RENTING, BUT THEY'RE NOT REALLY FEWER PEOPLE RENTING. THOSE ARE PEOPLE WHO LIVE HERE. AND SO IT'S KIND OF DIFFERENT THAN SAYING, WELL, THE MARKET IS FLOODED WITH SHORT TERM RENTALS AND PEOPLE AREN'T RENTING AS MANY, THERE AREN'T AS MANY AVAILABLE BECAUSE WE HAVE THE OWNERS OF THOSE THERE. AND IT JUST, IT'S A TRICKY DIFFERENCE, BUT IT IS A DIFFERENCE, UM, BECAUSE WE DO HAVE SOMEONE OCCUPYING THEM. WE DO HAVE SOMEONE WHO'S CONTRIBUTING POTENTIALLY TO SALES TAX, CONTRIBUTING TO RESTAURANT USAGE, TO PURCHASE USAGE IS OF VARIOUS THINGS. WE JUST CAN'T, CAN'T KNOW THAT. SO IT LOOKS LIKE SALES REVENUE MIGHT BE GOING UP, BUT YOU KNOW, THAT TAX IS GOING DOWN AND, AND IT'S BECAUSE THOSE PEOPLE LIVE HERE WAS WHAT I WAS TRYING TO GET AT. AND WE DON'T KNOW WHAT PERCENTAGE OF OUR POPULATION IS ACTUALLY FULL-TIME VERSUS PART-TIME. I DON'T THINK I'M LOOKING TO SEE ANYONE. NO, NO. OKAY. THAT'S, THAT'S REALLY WHAT I WAS GETTING AND I WAS JUST TRYING TO SAY YOU HAVE AN ADDED COMPLEXITY, , THERE'S QUITE A BIT OF COMPLEXITY THIS . UM, GREAT. AND THEN, UH, NEXT I WANTED TO DO, WE, OUR RESEARCH ANALYST AND I SAT DOWN AND JUST SAID, HOW HAVE THE DIFFERENT CATEGORIES WITHIN THE SALES TAX REPORT, HOW HAVE THEY CHANGED PROPORTIONATELY OVER TIME IN THE LAST FIVE YEARS? SO YOU'VE GOT KIND OF RETAIL ON THE LEFT, HOTEL, MOTEL, RESTAURANT BAR CONSTRUCTION, LEASING, COMMUNICATIONS AND UTILITIES AND AMUSEMENTS AND OTHERS. UM, I LIKE TO PULL OUT THE, UH, I THINK FOUR VISITOR FACING ONES THAT ARE HERE WHERE YOU'VE GOT, YOU KNOW, RETAIL ON THE LEFT, HOTEL MOTEL KIND OF ON THE LEFT MIDDLE RESTAURANT BAR, RIGHT MIDDLE, AND THEN AMUSEMENTS AND OTHERS ON THE RIGHT. AND THIS IS OUT OF A, YOU KNOW, OF A HUNDRED DOLLARS OF SALES TAX, GOT GOT SPENT, YOU KNOW, RETAIL IS, YOU KNOW, LITTLE BIT OVER A THIRD, YOU KNOW, HOTEL MOTEL IS, YOU KNOW, SOMEWHERE IN THE HIGH TWENTIES AND THEN, UH, RESTAURANT BAR IS JUST UNDER 20 AND THEN AMUSEMENTS AND OTHERS IS AROUND, YOU KNOW, 5% OR SO. UM, WHAT'S INTERESTING, AND KIND OF WHAT I ALLUDED TO BEFORE IS THAT RESTAURANT BAR HAS REMAINED A PRETTY FLAT PROPORTIONATE AMOUNT OF THE SALES TAX REVENUE. UM, AND THAT'S I THINK PARTLY BECAUSE, YOU [00:55:01] KNOW, THEIR PRICES HAVE KIND OF JUST GONE UP PRETTY CONSISTENTLY O OVER TIME. SO I CALL THAT A PRETTY FLAT LINE OVER THE LAST FIVE YEARS AND IT'S PROPORTIONATE, UM, CONTRIBUTION TO THE SALES TAX REVENUE. UM, AMUSEMENTS AND OTHERS HAS HAD KIND OF A, YOU KNOW, VARYING YEAR TO YEAR, BUT OVERALL THAT'S A RELATIVELY FLAT LINE AND KIND OF IN A, IN A, IN A SMALL RANGE. BUT THE ONE THAT I DID WANT TO CALL OUT, AND I'VE GOT A BETTER EXAMPLE OF IT ON THE NEXT SLIDE IS THAT, YOU KNOW, HOTEL AND MOTEL HAS BEEN INCREASING ITS PERCENTAGE OF, OR ITS PROPORTION OF THE SALES TAX, UM, REVENUE WHERE A RETAIL HAS BEEN ON A DECLINE WITHIN THAT, WITHIN THAT PERCENTAGE. UM, YOU CAN SEE THAT BIG DIP AT THE VERY END THAT GOES UP AND DOWN. THAT WAS THAT DELINQUENT TAX PAYMENT IN JUNE. UM, WHICH JUST KIND OF WHAT I WOULD START TO THINK ABOUT IN THIS IS THAT WE'RE SEEING, YOU KNOW, PEOPLE SPEND MORE OF THEIR PROPORTIONATE BUDGET OR VISITORS SPEND MORE OF THEIR PROPORTIONATE BUDGET ON THEIR LODGING THAN THEY ARE IN IN OTHER SECTORS OVER TIME. I KNOW WE MIGHT SEE SOME DIFFERENT THINGS, UM, AT DIFFERENT TIMES OF THE YEAR, BUT THAT'S JUST BEEN A, A LONGER TERM TREND WE'VE SEEN OVER THE LAST FIVE YEARS. AND THEN I DID JUST BREAK THIS OUT, SAME THING ABOUT CALENDAR YEAR TO DATE. YOU KNOW, HOW ARE WE LOOKING WITHIN WHAT I WOULD CALL THE FOUR VISITOR FACING SALES TAX CATEGORIES OF HOTEL MOTEL. THIS MIRRORS THE BED TAX FOR THE MOST PART. SO THAT'S, YOU KNOW, SAME THING WE SAW DOWN DOWN 2% RETAIL IS ACTUALLY FLAT CALENDAR YEAR TO DATE BECAUSE IT DID HAVE A PRETTY STRONG SEPTEMBER. I JUST TOOK A QUICK LOOK AT IT AND YOU KNOW, IT'S PRETTY MUCH A CONSISTENT 10% ACROSS, UM, KIND OF WHAT I SEE IN THERE. SO AGAIN, WE'RE DOING MORE ANALYSIS NOW ON RETAIL, BUT THAT IS JUST, I THINK, YOU KNOW, THAT'S INTERESTING TO NOTE. UM, AMUSEMENTS AND OTHERS IS DOWN 3% AND RESTAURANT BAR IS UP 5%, UM, CALENDAR YEAR TO DATE SO FAR. UM, WE HAVE NOW, I GUESS I, AS I MENTIONED, CONDUCTED OUR FIRST OFFICIAL, ALTHOUGH WE DID A PILOT IN JULY OF OUR QUARTERLY BUSINESS SURVEY RESULTS. UM, WE CONDUCTED THIS THROUGHOUT THE MONTH OF NOVEMBER. UH, WE GOT 17 RESPONSES FROM VISITOR FACING BUSINESSES WITHIN CITY LIMITS. THIS IS AN ANONYMOUS SURVEY. IT'S A COUPLE MORE THAN WE GOT IN JULY, BUT I THINK REALLY, YOU KNOW, THE MAJOR NOTE HERE IS THAT THIS PROCESS IS UP AND RUNNING AND WE NEED TO GET MORE RESPONSES FOR THIS TO TRULY BE AN IMPORTANT THING. BUT I KNOW SOME FOLKS ON THE COUNCIL HAVE SHARED THAT THEY WANTED TO SEE THIS. SO I WANTED TO SHOW YOU THAT WE ARE DOING THIS. UM, BUT PULL OUT A COUPLE THINGS FOR YOU SPECIFICALLY AND KIND OF REFERENCE TO SOME BACKSLIDES. AGAIN, THIS IS A VERY SMALL SAMPLE SIZE, BUT IT'S WHAT I HAVE TO SHARE TODAY. UM, WHICH IS, YOU KNOW, THIS IS FROM THE HOTEL RESPONDENTS THAT WE HAD AND WE HAD EIGHT. UM, HOW WOULD YOU DESCRIBE OVERALL PERFORMANCE? 63%? SOMEWHAT BETTER, 13% ABOUT THE SAME, 25% SOMEWHAT WORSE. JUMPING INTO RETAIL YOU HAVE 43 ABOUT THE SAME, 14%, SOMEWHAT WORSE, 43 MUCH WORSE. SO THEY'RE SORT OF OPERATING IN DIFFERENT, DIFFERENT SEGMENTS RIGHT NOW. UM, AS I GUESS I WOULD SAY WHAT I SEE IN THAT, UM, OVERALL WE ASKED IS FOOT TRACK FOOT TRAFFIC UP OR DOWN YEAR TO DATE? UM, AND IT'S BEEN NO CHANGE, SLIGHTLY DECREASED, SIGNIFICANTLY DECREASED AT 63%. SO WE DIDN'T ASK THAT OF THE HOTELS. THAT'S KIND OF NOT THE QUESTION WE WOULD ASK THEM, BUT ANY BUSINESS THAT DEALS WITH FOOT TRAFFIC WAS WHO WAS ASKED THAT QUESTION. AND THAT'S BEEN, YOU KNOW, NOBODY SAID IT'S BEEN HIGHER THAN IT WAS LAST YEAR. AND THEN, UM, FUTURE OUTLOOK IS KINDA MY LAST ONE HERE FOR YOU ON THIS ONE. SO HOW CONFIDENT ARE YOU IN YOUR BUSINESS'S FINANCIAL STABILITY AS WE GO INTO 20 26, 30 5%? VERY CONFIDENT, 12%, SOMEWHAT CONFIDENT, 24% NEUTRAL, 6%, SOMEWHAT CONCERNED, 24% VERY CONCERNED. SO THIS SLIDE REALLY, AND AGAIN, SMALL SAMPLE SIZE, BUT THIS IS OUT OF ALL THE RESPONDENTS, WE'RE SEEING A DIFFERENT STORY THERE. THERE ARE THINGS ARE HAPPENING DIFFERENTLY DEPENDING ON THE TYPE OF BUSINESS THAT YOU ARE, KIND OF WHERE YOU ARE. THERE'S NOT A SINGLE NARRATIVE FROM A BUSINESS STANDPOINT THAT I'M KIND OF SEEING GET PULLED OUT HERE. SO JUST LOOKING AHEAD AND SOME REFLECTIONS. UM, AND HAPPENING TO MOVE INTO QUESTIONS WOULD BE, YOU KNOW, OVERALL NATIONALLY, US DESTINATIONS ARE MOVING INTO A MORE COMPETITIVE TOURISM LANDSCAPE. UM, THAT'S JUST THE REALITY OF WHERE WE'RE AT. UM, AND THAT'S JUST SOMETHING THAT, YOU KNOW, OBVIOUSLY I THINK ABOUT QUITE A BIT. UM, HIGHER END SERVICES SERVICES HAVE REMAINED THE MOST RESILIENT, BUT HAVE ALSO BEGUN TO SOFTEN IN RECENT MONTHS. UM, NOVEMBER SEEMS TO BE FARING WELL IN TERMS OF REVENUE, BUT AS I MENTIONED WITH CONTINUED SOFTENING IN THAT DEMAND. AND TO STERLING'S POINT EARLIER ABOUT HOW WE'RE LOOKING AT THE POTENTIAL IMPACTS OF A RECESSION, I THINK THAT WE'RE REALLY LOOKING AT WHAT'S GONNA BE HAPPENING OVER THE NEXT SEVERAL MONTHS AS WE END OUT THE CALENDAR YEAR OF 25, MOVE INTO CALENDAR YEAR 26 TO REALLY UNDERSTAND OUR TRAJECTORY FOR TOURISM. UM, WHEN IT COMES TO INTERNATIONAL INBOUND. THEY BOOK THEIR TRIPS BETWEEN NOW AND FEBRUARY. SO WE'LL HAVE A MUCH BETTER IDEA ON WHAT THE STATE OF INTERNATIONAL TRAVEL [01:00:01] WILL BE NATIONALLY COME APRIL OR SO, I WOULD SAY WHEN THE TRAVEL AGENTS KNOW WHAT'S ON THE BOOKS. AND THEN AS WE CONTINUE TO KIND OF MOVE THROUGH THE HOLIDAY SEASON, THE Q4 GO INTO Q1 OF NEXT CALENDAR YEAR. AS WE LOOK AT OUR SALES AND BED TAX, UM, YOU KNOW, CAN WE CONTINUE TO GLEAN CERTAIN TYPES OF INSIGHTS FROM THAT? CAN YOU SAY ANYTHING ABOUT LIKE THE GRAND CANYON EFFECT? OH, IS THERE A WAY TO KNOW IT'S, I DUNNO IF THEY HEARD MY QUESTION. YEAH, YEAH. THE QUESTION WAS, YOU KNOW, HOW MUCH DID THE GRAND CANYON PLAY INTO THIS YEAR? I WOULD SAY IT'S 100% A PART OF THE PIZZA PIE, BUT I'M NOT ABLE TO COMMUNICATE EXACTLY WHAT THE SIZE OF THAT PIZZA PIE. AND IT COMES INTO, I THINK, STERLING'S COMMENTS OF, YOU KNOW, THERE'S, THERE'S A LOT OF FACTORS THAT GET INTO HERE. YOU KNOW, I WOULD SAY THAT, YOU KNOW, THE POCO DIABLO CLOSURE IS A PART OF THE, IS A PART OF THE PIZZA PIE, THE GRAND CANYON. AND FRANKLY IT WAS THE PERCEPTION OF THE GRAND CANYON BEING CLOSED. AND WE SEE THAT A LOT WITH WILDFIRES WHERE THE SOUTH WAS OPEN, BUT FOLKS WERE THINKING THAT IT WAS CLOSED, SO THEY WEREN'T GOING THERE. AND THEN WE HAD THE SHUTDOWN WHERE PEOPLE THOUGHT IT WAS CLOSED AND THEN THAT PEOPLE WEREN'T GOING THERE. AND THEN HOW DOES THAT IMPACT US? YOU'VE GOT, YOU KNOW, THE ECONOMIC DISRUPTION. SO, UM, I THINK IT'S PART OF THE VARIABLE, BUT I'M NOT ABLE TO LIKE, PUT A THUMB ON THE SCALE OF, YOU KNOW, WHAT ROLE DID IT PLAY OTHER THAN IT CERTAINLY PLAYED A ROLE. I THINK WE TRIED IT, I THINK MAYBE NOW. OKAY. UM, ONE MORE GIFT THAT KEEPS GIVING AT THE GRAND CANYON WAS THE WATER SUPPLY PROBLEM AS WELL. I DON'T KNOW IF THE HOTELS WITHIN THE PARK HAVE OPENED REOPENED YET OR NOT. YEAH, I ACTUALLY, I CALLED THE MANAGER OF TOWN MANAGER OF TOE A COUPLE WEEKS AGO JUST TO, HEY, I'M HEARING A LOT ON THE NEWS. HERE WE GO. SENSATIONALISM GRAND CANYON'S CLOSED AGAIN. UM, THEY HAVE QUITE A BIT OF HOTEL INVENTORY IN, IN, IN, IN TOE. AND WHEN I TALKED TO THE GENTLEMAN THAT'S A TOWN MANAGER, THEY WERE NOT CONCERNED ABOUT BEING AT CAPACITY AT THE HOTELS, GIVEN ITS SORT OF LOW SEASON. BUT THIS IS THE THIRD TIME THIS CALENDAR YEAR THAT WE'VE HAD NATIONAL STORIES THAT THE GRAND CANYON IS CLOSED. MM-HMM . THE MAYOR'S GONNA GET ON YOUR CASE. BY THE WAY. IT'S TWOSIE END IS HOW THEY PRONOUNCE IT. WOULD'VE NEVER GUESSED . NO, BUT MY REAL QUESTION IS, UM, ANDREW HAD, DID YOU HEAR OR READ ABOUT THE PROPOSED NEW FEDERAL RULES AFFECTING FOREIGN VISA APPLICATIONS, THE NATIONAL PARK PRICES? WHAT'S THAT? AND, AND ALSO THE INCREASES FOR INTERNATIONAL VISITORS TO GO TO NATIONAL PARKS? UH, NO. WELL I WASN'T ASKING ABOUT THAT PART. OKAY. BUT THE PART THAT I WAS READING ABOUT WAS THAT IF YOU WANT A VISA TO VISIT THE US THE PROPOSED RULE IS GONNA REQUIRE YOU TO PROVIDE ALL THE EMAIL ADDRESSES YOU'VE USED SOCIAL MEDIA HISTORY, AND THAT'S NOT FOR COUNTRIES THAT ARE ON THE, WE DON'T LIKE YOU LIST. THAT'S LIKE EVERYBODY, INCLUDING THE UK FOR INSTANCE. SO HAVE YOU, I MEAN, ONE THING I, I GUESS I WOULD LIKE FOR COUNSEL TO PROVIDE DIRECTION THAT WE WOULD RESPOND TO WHATEVER THE PLACES THAT YOU CAN COMMENT ON THOSE PROPOSED RULES AND SAY NO, HECK NO. MM-HMM . UH, BUT I'M JUST CURIOUS HOW THAT FACTORS INTO YOUR CRYSTAL BALL WHEN YOU THINK ABOUT ITS EFFECT. I, I CAN'T THINK THAT IT WOULD HAVE ANYTHING OTHER THAN A CHILLING EFFECT ON FOLKS THAT HAVE A CHOICE OF WHERE THEY WANT TO VISIT. THERE ARE A LOT OF HEADWINDS FACING INTERNATIONAL INBOUND TRAVEL. UM, I THINK, YOU KNOW, YOU'VE ALLUDED TO WHAT HAS BEEN, I THINK IN 25 WAS SORT OF THE SENSATIONALISM OF THEY'RE GONNA STOP YOU AT THE BORDER. AND THERE WERE A COUPLE STORIES THAT CAME OUT, BUT I DON'T THINK THEY WERE SEEN AS UNIVERSAL SITUATIONS. BUT TO YOUR POINT, YOU KNOW, THOSE POTENTIAL RULES WOULD SORT OF CEMENT WHAT I THINK IS A, YOU KNOW, A VALID CONCERN THAT I'VE HEARD, AT LEAST FROM WESTERN EUROPE IS PRIMARILY WHO I'M TALKING TO AT THIS POINT. WHEN IT COMES TO INTERNATIONAL TRAVEL, I TALK TO MORE, BUT THAT'S REALLY MY, MY, MY BIGGEST SAMPLE SIZE. UM, THERE ARE INCREASED VISA ENTRY FEES COMING ONLINE FOR, FOR NEXT YEAR, WHICH IS ALSO A DETERRENT OR A HEADWIND FOR INTERNATIONAL TRAVEL. THERE'S ALSO GONNA BE A OUT OF COUNTRY VISITOR INCREASE TO NATIONAL PARKS, WHICH IS A PRIMARY DRAW. SO, UM, WE ARE MEMBERS WITH THE VISIT USA GERMANY COMMITTEE, UH, WHICH GIVES US GREAT ACCESS TO THAT MARKET. AND, UM, THEY DID, FOR EXAMPLE, THEY DID JUST SEND A LETTER TO, UH, THE, THE NATIONAL ENTITIES TO SAY THAT WE STRONGLY OPPOSE THESE CHANGES TO IT. BECAUSE, YOU KNOW, AS ONE TAKEAWAY I'VE HAD FROM, YOU KNOW, THIS YEAR OF 25 OF CHATTING WITH FOLKS IS THAT THOSE TRAVEL AGENTS THAT SELL, AND I, WE, AND WE JUST HAD OPERATORS THAT WERE HERE IN DECEMBER THAT I WAS TALKING ABOUT THIS, BUT [01:05:01] THOSE TRAVEL AGENTS THAT SELL THE WORLD, RIGHT? YOU, YOU WALK INTO AN AGENCY, WHETHER IT'S DIGITAL OR OR SORT OF PHYSICAL, YOU COULD GO ANYWHERE. ALL OF A SUDDEN YOU HEAR THESE CHANGES HAVE HAPPENED, I'M GONNA GO SOMEWHERE ELSE. SO WE'VE SEEN MORE OF A DIVERSION OF BOOKINGS FROM THOSE AGENCIES THAT SELL THE WORLD. AND THEN THOSE AGENCIES THAT SELL THE US IF YOU KNOW YOU WANT TO COME TO THE US AND THAT'S WHAT YOU WALKED INTO THAT AGENCY WANTING TO DO, YOU'LL PROBABLY STILL DO IT. UM, SO THERE IS SORT OF A BIFURCATED IMPACT THAT'S HAPPENING. AND THAT'S REALLY, YOU KNOW, I'LL BE AT, UM, THE GO WEST SUMMIT IN LATE MARCH, EARLY APRIL, AND THEN IPW IN MAY AND, AND I'M ALSO GONNA BE ON A MISSION IN PARIS AND BRUSSELS IN FEBRUARY TO TALK TO THOSE AGENTS. SO THAT'S KINDA WHAT I MEAN. WHILE I'M GONNA KNOW A LOT MORE ABOUT WHAT THE STATE OF THE UNION IS WITH THE WESTERN EUROPEAN TRAVEL AGENCY KIND OF MARKET COME, YOU KNOW, HOPEFULLY WHEN I GET BACK IN FEBRUARY, BUT THEN CERTAINLY BY THE TIME I GET BACK FROM IPW IN MAY, ANDREW, UH, MAYBE IT'S REALLY BARB, A QUESTION. AND THE OBSERVATION A QUESTION IS ABOUT THE RETAIL TAXES THAT WE SEE, RETAIL SALES TAXES, THOSE INCLUDE OUR ONLINE TAXES IS WHAT, RIGHT? AND DO WE KNOW THE SPLIT BETWEEN TAXES PAID THROUGH BRICKS AND MORTAR, OUR LOCAL SHOPS VERSUS ONLINE? THAT'S WHAT, THAT'S WHAT WE'RE INVESTIGATING. WHETHER OR NOT WE CAN PUBLICLY REPORT THAT RIGHT NOW. OKAY. AGAIN, THAT'S A GREAT BIG CATEGORY. I WOULD HOPE THAT WE COULD GET SOME INSIGHT INTO THAT NUMBER. 'CAUSE I'M REALLY INTERESTED IN WHETHER ONLINE IS GROWING OR NOT. 'CAUSE IT GETS TO SOME OF THE QUESTIONS THAT YOU GUYS WERE ASKING. AND THEN ALSO MY KIND OF OBSERVATION AND THEN QUESTION FOR YOU ABOUT, DO YOU HAVE THE SAME OBSERVATION AS ME? THE MONTHLY DATA SEEMS PRETTY NOISY. AND WHEN WE LOOK AT A CHART THAT SAYS SALES TAX IS UP TO BED, TAX IS DOWN TO, I'M WONDERING IF THAT TELLS US ANYTHING. 'CAUSE THERE'S CORRECTIONS, SOMETIMES THERE'S SOMETIMES STR OWNERS THAT ARE HERE AND SPENDING AND NOT TAXING AND JUST THE DATA SEEMS NOISY TO ME. BUT WHEN I LOOK AT THESE ANNUAL CHARTS, I SEE REALLY STRONG TRENDS THAT I AM CONFIDENT THAT I CAN PULL SOME INFORMATION OUT OF. AND I WONDER, IS IT YOUR RECOMMENDATION AS WELL THAT MAYBE WE DON'T REACT SO MUCH TO MONTHLY DATA AS IT COMES OUT? SO I GOT PULLED INTO ALL THIS WHEN WE SAW THE 31% DOWN IN, IN, IN, IN BED TAX IN JUNE, AND IT WAS LIKE, OKAY, LET'S, LET'S UNDERSTAND WHY, RIGHT? AND THEN YOU START TO UNSTITCH PART OF THE SWEATER AND ALL OF A SUDDEN, NOW I DID A FULL TWO CALENDAR YEARS OF, OF ANALYSIS BECAUSE, YOU KNOW, IT'S, I WOULD SAY QUARTERLY IS PROBABLY, IS PROBABLY THE BETTER WAY TO LOOK AT THIS. UM, YOU KNOW, WE DO HAVE BUSINESSES THAT REPORT QUARTERLY. WE HAVE BUSINESSES THAT REPORT MONTHLY. UM, THERE'S SOME REASONS KIND OF WHY THAT HAPPENS. SO REALLY LOOKING AT A QUARTERLY IS PROBABLY A STRONGER, WHICH COMING BACK TO US WANTING TO HAVE A REAL TIME INFORMATION TO MAKE REALLY STRONG TOURISM RELATED DECISIONS. NOW WE JUST BACKED OURSELVES OUT TWO MORE MONTHS TO SOME EXTENT TO BE ABLE TO SAY, HEY, SO THAT'S, THAT'S SOMETHING I'VE BEEN THINKING ABOUT COUNSELOR FURMAN IS, YOU KNOW, IT'S, IT'S NICE TO SEE THESE TREND LINES. UM, YOU KNOW, I STILL THINK WE LOOK AT MONTHLY STUFF. UM, YOU KNOW, WE CAN TELL YOU IF THERE'S ANOMALIES IN IT. UM, AND THAT'S WHEN THERE ARE ANOMALIES, THEN MAYBE THAT'S OKAY, LET'S SPREAD THIS OUT OVER A QUARTER TO SEE HOW THEY NORMALIZE. BUT, UM, YES, THERE ARE CERTAINLY SOME TRENDS, BUT I THINK THAT, YOU KNOW, I THINK MY ROLE IN ALL OF THIS RIGHT NOW IS TO MAKE SURE THAT IF WE REPORT ON A MONTH, WE'LL LET YOU KNOW IF IT'S BECAUSE OF SOMETHING THAT'S NOT TIED TO PERFORMANCE, IT'S TOWARD TO A TIED TO A, YOU KNOW, PAYMENT ESSENTIALLY. UM, AND THEN LET YOU KNOW WHEN WE THINK IT'S TIED TO PERFORMANCE. DO YOU HAVE A SENSE OF WHAT THAT NOISE NUMBER IS? YOU KNOW, WHETHER IT'S DON'T PAY ATTENTION TO CHANGES LESS THAN 2%, OR, YOU KNOW, I DON'T KNOW WHAT THAT NUMBER IS, BUT I DON'T KNOW THAT NUMBER YET EITHER. THERE'S A SIGNAL TO NOISE RATIO THAT WE SHOULD REALLY UNDERSTAND HERE. . I TOTALLY AGREE, AND I THINK, AGAIN, I MEAN, UM, I'M EXCITED TO GET THROUGH THIS CALENDAR YEAR, UM, AS WE GET THE NEXT, YOU KNOW, THREE MONTHS OR SO THAT GIVES ME A FULL YEAR OF, OF, OF DATA AND TRENDS. AND THEN, UM, ONE THING THAT I WILL BE DOING IS, AND I KIND OF ALLUDED TO IT, BUT ONCE WE GET THE FULL CALENDAR YEAR DONE, UM, THEN WORKING WITH OUR RESEARCH ANALYST TO THEN LOOK AT HOW SMITH TRAVEL RESEARCH AND THE AIRBNB VRBO PERFORMANCE, HOW DOES THAT PROJECTION TWO MONTHS IN ADVANCE LINE UP WITH THE SALES AND FRANKLY, THE BED TAX REMITTANCE [01:10:02] AND JUST SEE IF THERE'S ANY SORT OF TREND THERE AS WELL. RIGHT. UM, SO YES, WE'RE LOOKING AT IT. UM, I DON'T HAVE ANY GREAT ANSWERS FOR YOU TODAY OTHER THAN HOPEFULLY THIS IS MORE THAN YOU'VE SEEN BEFORE. UM, AND THAT, YOU KNOW, THIS IS JUST THE TIP OF THE ICEBERG. ALL RIGHT. THANKS EVERYBODY. THANK YOU. OKAY. REAL QUICKLY, JUST WANTED TO, TO TACK ONTO WHAT ANDREW HAD SHARED. UM, THIS WAS ORIGINALLY IN THE SLIDES, BUT JUST SOMETHING TO BE CONSIDERATE AS PHOENIX IS A MAIN ECONOMIC DRIVER. SO THE 2020 PHOENIX DRY, UM, THE, THE PHOENIX, UM, WE HAVE THE JANUARY 8TH FIESTA BOWL. UH, SO THAT WILL BE SOMETHING THAT COULD SEE A SPIKE IN, IN TOURISM UP HERE APRIL 3RD THROUGH THE FIFTH IS THE NCA WOMEN'S FINAL FOUR. AUGUST 6TH THROUGH NINTH IS THE US GYMNASTICS CHAMPIONSHIP. AND THIS IS, YOU KNOW, WE ALSO HAVE SPRING TRAINING THAT HAPPENS FEBRUARY THROUGH MARCH, AND THEN THE WASTE MANAGEMENT PHOENIX OPEN. I DID NOTE PHOENIX IS NOT SLATED TO HOST THE SUPER BOWL FOR THE PREDICTABLE FUTURE, AND PHOENIX IS NOT INVOLVED IN THE 2026 WORLD CUP MATCH. AND THEN, UH, JUST TO GET BACK TO ANNETTE, I DID DO A LITTLE QUICK HISTORY ON CONSTRUCTION COST INDEX. SO JUST GIVE A LITTLE, EVERYONE JUST A LITTLE HISTORY. SO IN 2020, CONSTRUCTION INFLATION WAS RELATIVELY MODEST, ABOUT TWO TO 3% A YEAR AS THE ECONOMY REOPENED COST SURGED SHARPLY, I'M SURE, UH, SANDY AND, AND KURT COULD WRITE A BOOK ON THIS, UH, WE SAW, YOU KNOW, COST INCREASE UP TO 13 TO 15%, AND THEN 2324 COST WERE STILL HIGH AVERAGED DOWN TO ABOUT FOUR TO 5% ANNUALLY. SO FOR 2025 FORECASTS INDICATE MID SINGLE DIGIT INCREASES. SO ABOUT FOUR TO 7% INCREASES. NOW THESE VARY BY CATEGORY. UM, SO OVER THE NEXT 12 MONTHS WE'RE, WE'RE WATCHING CONSTRUCTION COSTS GOING UP. SO THE, THE, THE MAIN INDICATOR INDICATORS ARE GONNA BE LABOR SHORTAGES, WAGE GROWTH, INCREASING IN SKILLED TRADE, UH, ONGOING MATERIAL PRICE VOLATILITY WITH TARIFFS. UM, SO JUST TO GIVE A COUPLE EXAMPLES, ROAD PAVING MIXTURES IS UP 15% YEAR OVER YEAR. CONCRETE PRODUCTS ARE UP 3% YEAR OVER YEAR. COPPER AND BRASS UP 3%, SOME DECREASES. SO STEEL PIPE IS DOWN 1.3%, AND THEN LUMBER AND STRUCTURAL STEEL IS DOWN 1%. SO IT'S SOME COST ESTIMATES. BUT FOR CURT SANDY, ABOUT FOUR TO 7% IS THE TARGET. UH, AGAIN, A LOT IS GONNA BE WATCHED WITH TARIFFS AND HOW THAT IMPACTS IMPORTS. ALL RIGHT. SO JUST SOME PRELIMINARY BUDGET ASSUMPTIONS AND WANTED TO ASK ANNETTE AND BARBARA, THERE IS A DISCUSSION POINT IN HERE. I DON'T KNOW IF YOU WANT TO HAVE COUNCIL DISCUSSION NOW OR PUSH THAT TO DAY THREE. UH, IN REGARDS TO REVENUE ESTIMATES, WE HAVE A SLIDE ON THAT TUTORIAL ON THE MICROPHONE. OKAY. SO THE QUESTION IS, DO WE WANT THE COUNCIL TO WEIGH IN ON REVENUE ASSUMPTIONS AT THIS POINT, BARBARA, OR DO YOU WANNA WAIT UNTIL WE'VE GONE THROUGH ALL OF THE PRESENTATION? I DON'T HAVE A PREFERENCE. SO IT'S WHATEVER THE, WHENEVER THE COUNCIL WANTS TO WEIGH IN. UM, BUT WE'RE HOPING THAT BY THE END OF TODAY, WE HAVE SOME GENERAL DIRECTION FROM THE COUNCIL ON WHAT YOU'RE COMFORTABLE WITH SEEING IN THE BIG PICTURE ASSUMPTIONS THAT WE'RE GONNA GO FORWARD AND BUILD OUR BUDGET TO, TO BRING BACK TO YOU, UM, AFTER THE FIRST OF THE YEAR. SO I, I DON'T KNOW IF YOU HAVE A PREFERENCE GIVEN WHERE YOU'RE AT IN THE PRESENTATION. I DON'T THINK WE HAVE A PREFERENCE. AND IF YOU ALL WANNA WEIGH IN, YOU KNOW, AS STERLING'S PRESENTING, KIND OF WHAT WE'RE LOOKING AT, THAT'S GREAT. IF YOU WANNA CHANGE YOUR MINDS LATER, THAT'S ALSO GREAT. YOU KNOW, SO LIKE, LET US KNOW WHAT YOUR THOUGHTS AND OPINIONS ARE AND WE'LL WORK IT IN. SO LAST YEAR YOU'LL REMEMBER THAT WE, I BELIEVE, STARTED OUT IN THE FIRST ROUND OF OUR BUDGET PRESENTATION TO THE COUNCIL WITH A SLIGHT INCREASE IN REVENUE ASSUMPTIONS. AND THEN COUNCIL ASKED US TO DROP THAT DOWN [01:15:01] AND KEEP IT FLAT, SO TO SPEAK. SO, I MEAN, JUST THAT KIND OF BASIC, UM, I THINK THIS YEAR WE'RE LIKE, OKAY, WE SHOULD KEEP IT FLAT, BUT I DON'T KNOW IF COUNCIL, YOU KNOW, WANTS TO HAVE US ACTUALLY DECREASE IT OR NOT. BUT, UH, JUST THAT TYPE OF HIGH LEVEL WHERE YOU THINK, UM, YOU'RE COMFORTABLE WITH US BUILDING THE, THE BASIC ASSUMPTION THAT WE'RE GONNA USE. ABSOLUTELY AGREE. I THINK IT'S, UM, AT THIS POINT WE WOULD PROBABLY RECOMMEND KEEPING REVENUES FLAT OTHER THAN STATE SHARED, WHICH OBVIOUSLY WILL PROBABLY DECREASE. OKAY. UM, SO AGAIN, COUNSEL AT ANY TIME YOU WANNA WEIGH IN, UH, JUST TO DISCUSS THIS SLIDE. SO THE, HIS, THE CITY HAS HISTORICALLY UNDER PROJECTED OR UNDER FORECASTED REVENUES. UM, ONLY EXAMPLE REALLY WOULD BE IN FY 23. I THINK WE GOT A LITTLE EXCITED IN 21 AND 22 REVENUES WERE REALLY COMING IN HIGH. AND WE OVERESTIMATED REVENUES IN 23 AT 68.76, AND THEY CAME IN AT 63.57. SINCE THEN, THE CITY HAS, YOU KNOW, TRIED TO REALLY KEEP CONSERVATIVE REVENUE PROJECTIONS. SO IF YOU LOOK AT 24, THE BUDGETED PROJECTION WAS 64.8 MILLION. REVENUES CAME IN AT 70.13 FOR FY 25. THE ESTIMATE WAS 67.4 MILLION IN ACTUALS, CAME IN AT 74.39. SO AS BARBARA MENTIONED, WE HELD REVENUES FLAT FOR FY 26, UH, AGAIN WITH SOME DECREASES THAT WE KNEW WE WERE GONNA GET, UH, DECREASES IN STATE SHARED REVENUE. SO THAT'S WHY IT'S ACTUALLY NOT FLAT, IT'S DOWN A LITTLE BIT. SO I THINK THE DIRECTION LOOKING AT COUNCIL IS WITH ACTUALS COMING IN IN FY 25 AT 75 MILLION, WOULD WE WANT TO CONTINUE TO HOLD REVENUES FLAT AT THAT 67 OR INCREASE OUR, OUR BASELINE TO THAT 74 MILLION. SO I THINK THAT WAS JUST SOME OF THE CONVERSATION WE WANTED TO HAVE TODAY WITH COUNSEL. OKAY. SO OBVIOUSLY I THINK THE COUNCIL, UM, AND STAFF UNDERSTAND THIS DYNAMIC, BUT I'M JUST GONNA SAY IT FOR THE GENERAL PUBLIC GOOD OR ANYBODY WATCHING, UM, YOU KNOW, AS WE KEEP OUR BUDGET FLAT AND OUR, UM, EXPENDITURES DOWN, YOU KNOW, IN RESPECT OF, YOU KNOW, WHAT THE ECONOMY'S DOING, UM, AND WE STILL COLLECT A HIGHER NUMBER, THAT DIFFERENCE IS GOING INTO RESERVES, RIGHT? SO, UM, THAT'S ONE WAY TO SMOOTH OUT THE EFFECTS OF THE ECONOMY IS TO, UM, PUT THAT ASIDE AND QUOTE THE SAVINGS ACCOUNT. SO JUST BECAUSE WE RECEIVED THE MONEY, UM, HIGHER THAN WHAT WE'VE BUDGETED, WE WE CAN'T SPEND IT. SO IT JUST GETS SET ASIDE. GREAT. WELL THAT IS ALL WE HAVE PRESENTED ON BUDGET ASSUMPTIONS. UM, FOR REVENUE. FOR FOR REVENUE, CORRECT. YEAH. NEXT UP WOULD BE OUR, OUR STATE EXPENDITURE LIMIT. STERLING. YEP. STERLING, WHAT'S YOUR CRYSTAL BALL TELL YOU ABOUT PROJECTED ACTUAL FOR FY 26 WITH THE VAST AMOUNT OF DATA YOU'VE ALREADY, UH, RECEIVED THIS YEAR? IT'S, IT'S, I THINK THAT IS THE QUESTION. I, I THINK THERE'S A NUMBER OF THINGS TO LOOK AT. I THINK FOR ME, MY STOMACH TURNS A LITTLE BIT WITH GEOPOLITICAL RISK AND WHAT THAT COULD MEAN, JUST NOT FOR ARIZONA AND SEDONA, BUT FOR THE ECONOMY. WITH THAT, IF THE CITY WERE TO PUT IN AN ESTIMATE AND SAY THERE WAS A, A MARKET COLLAPSE DUE TO SOME GEOPOLITICAL RISK, THE CITY HAS THE ABILITY TO SLASH ITS CURRENT EXPENDITURE BUDGET SO IT CAN PULL BACK. SO THAT, THAT IS ONE OPTION THAT THE CITY HAS IF THERE'S AN OVERESTIMATION IN REVENUES. WITH THAT SAID, UH, COUNSELOR, I, I THINK CONSERVATISM GOING INTO THE UNKNOWN EFFECTS OF TARIFFS WOULD BE GOOD PRUDENCE FOR, FOR BUDGET. OKAY. SO YOU'RE NOT GONNA MAKE A GUESS ON, UH, THE FULL YEAR 26. UM, I, I THINK THE NATIONAL AVERAGES OF ONE TO 2% GDP GROWTH, I THINK ARE GOOD ESTIMATES TO USE FOR, FOR THE CITY OF ONE TO 2% REVENUE INCREASE IS, UH, IS PRACTICING FISCAL PRUDENCE. OKAY. SO ARE WE GONNA WEIGH IN RIGHT NOW, COUNSEL? I MEAN, I'M FINE WITH KEEPING, UH, THE, THE PROJECTED REVENUE FLAT FOR FISCAL 20, OR SORRY, BUDGET FOR FLAT FOR FISCAL 27 IN KEEPING WITH WHAT WE JUST DID FOR 26, UM, SINCE I HAD THE MIC. UM, YEAH, I WOULD DEFINITELY STAY FLAT OR EVEN REDUCE DOWN, UH, BECAUSE [01:20:01] I THINK THAT WE ARE SEEING THE SOFTENING NOW IN THE LUXURY MARKET FOR HOTEL. SO THE REVENUE WE'LL GET FROM THAT TAX, AND WE ALREADY SEE THE DOWNWARD TREND IN THE RETAIL. SO WITH KNOWING THOSE TWO THINGS, I MEAN, WHY WOULD WE TAKE THOSE INTO CONSIDERATION? UM, I CAN SPEAK TO THAT A LITTLE THAT, UM, IF YOU LOOK AT OUR, OUR TRENDS AS FAR AS WHERE WE BUDGET REVENUE AND WHERE THE ACTUALS ARE COMING IN, WE'RE RECOMMENDING THE FLAT BECAUSE THE ACTUALS WILL STILL PROBABLY COME IN IF, IF EVERYTHING STAYED FLAT, IF ACTUALS STAYED FLAT, WE WOULD STILL COME IN ABOUT $7 MILLION HIGHER THAN OUR BUDGET. SO WE ALREADY HAVE A KIND OF BUFFER, IF YOU WILL, IF THOSE COME DOWN A LITTLE. WE'VE CREATED A NATURAL BUFFER IN THERE. UM, I, I'M A HUNDRED PERCENT COMFORTABLE WITH REDUCING THEM. I JUST WANTED TO EXPLAIN OUR, OUR LOGIC BEHIND THAT. DO YOU WANNA JOIN IN? YOU DON'T WANNA OPINE? OH, I HAVE TO FIRST. FINE. UM, OBVIOUSLY IT FEELS THE SAFEST THING FOR US TO DO IS TO STAY FLAT AND STAY NEUTRAL AND THEN AS PROJECTS COME UP, WE NEED TO THINK REALLY, REALLY HARD ABOUT WHETHER OR NOT THEY'RE THE RIGHT PROJECTS FOR US TO BE DOING, UM, VERSUS OTHER PROJECTS THAT MIGHT BE ON THE LIST. SO WE, BECAUSE WE KNOW THAT THEY ALWAYS SEEM TO CREEP UP A LITTLE BIT AS WE REALLY GET INTO THEM AND WE FIND OUT WHAT THE REAL COSTS ARE. UM, AND THEREFORE, I, I JUST FEEL LIKE ONE THING TO SAY WHAT OUR BUDGET SHOULD BE, IT'S ANOTHER THING TO SAY WHAT OUR ACTIVITIES AND ACTIONS WILL BE DURING THE COURSE OF THE YEAR, UM, BASED ON THE PROJECTS THAT COME IN, WHICH WE MAY HEAR ABOUT DURING BUDGET SEASON. BUT WE HAVE TO THINK REALLY, REALLY HARD. I THINK THIS, THIS TIME AND, UM, I THINK WE HAVE TO THINK MORE HOLISTICALLY ABOUT HOW EVERYTHING THAT'S INSIDE OF THE BUDGET IS GOING TO IMPACT THE COMMUNITY AND HOW WE WANT TO THINK ABOUT THOSE IMPACTS. SO TO ANSWER YOUR QUESTION FLAT, BUT I ALSO THINK THERE'S MORE WORK THAT NEEDS TO BE DONE THROUGHOUT THE YEAR WHEN WE, WE GET THROUGH THIS, JUST RUN IT OVER . I DON'T NEED A MICROPHONE FLAT . I WISH I COULD USE SO, SO FEW WORDS. BUT YES, I THINK I'M A FLAT RIGHT BELT AND SUSPENDERS, THE SUSPENDERS IS THE NATURAL CONSERVATISM WE'VE HAD IN OUR FINANCE DEPARTMENT. THE BELT WE PUT ON LAST YEAR ARE FLAT. I THINK IT'S A GOOD KEEP IT FLAT BACK MAYOR BACK TO THE MAYOR , YOU HEAR MILES, OH, WELL WHO NEEDS A GYM MEMBERSHIP? SO I, I THINK THAT THE GEOPOLITICAL RISKS ARE NOT COMPLETELY BAKED IN AND THE IMPACT OF TARIFFS ARE NOT COMPLETELY BAKED IN. AND SO I WOULD BE REALLY CONSERVATIVE AND I AGREE WITH COUNCILOR DUNN, EVEN IF WE SET A FLAT, I MIGHT EVEN GO LOWER THAN THAT, BUT IF, BUT JUST ASSUME A FLAT BUDGET, THAT DOESN'T MEAN THAT EVERYTHING IS GOING TO BE, UH, SPENT OR APPROVED. SO I THINK WE HAVE TO ALSO TAKE A VERY HARD LOOK ON ALL THE PROJECTS. I, I WILL ALSO SAY THAT, AND I THINK WE'RE GONNA BE DISCUSSING THIS, I REALLY WANT TO DELVE IN DEEPER ON OUR CAPITAL, UH, AREA BECAUSE WE ALWAYS BUDGET A LOT MORE THAN IT TURNS OUT THAT WE SPEND, I'D LIKE TO SEE THOSE NUMBERS FOR THIS YEAR, AND I DON'T THINK THEY NEED TO BE SO WILDLY. UM, THE GAP NEEDS TO BE AS BIG AS IT IS. UH, SO THAT'S, THAT'S ANOTHER AREA THAT I THINK ANALYSIS IS WARRANTED. AND THEN I HAVE A QUESTION FOR ANDREW. SO WHEN STERLING TALKED ABOUT THE EVENTS THAT ARE GONNA BE HAPPENING IN PHOENIX THAT COULD DRIVE TOURISM HERE, YOU KNOW, WE MISSED LAST YEAR AND I'M NOT EVEN SURE I REMEMBER WHAT EVENT IT WAS. W HMM. WNBA. YES. WNBA, UH, IT OF CAUGHT UP WITH US. SO IN TERMS, WHAT I'D LIKE TO CHALLENGE [01:25:01] YOU WITH IS, 'CAUSE SOME OF THEM WERE IN THE SUMMER, WHICH I THOUGHT WAS GREAT. UH, BUILDING THAT INTO OUR TOURISM BUDGET FOR THOSE MONTHS. UM, YEAH, THANK YOU FOR BRINGING THIS UP. UH, I KNOW WE TALKED ABOUT IT, UH, WITH COUNCIL, I THINK IT WAS PROBABLY ON THE 14TH, UM, OF, OF OCTOBER, UH, WHEN WE MET WITH THE TAB ON THE THIRD, UH, WE DID DISCUSS WHAT SORT OF LOOSELY BEING CALLED LIKE A STRATEGIC EVENT MARKETING FUND RIGHT NOW. UM, SO WE WILL UPDATE YOU ON THAT WHEN WE PROPOSE THE BUDGET TO YOU. SO YES, THAT'S BEEN, THAT'S BEEN TALKED ABOUT WITH THE TAB AND INCLUDED IN WHAT THEIR RECOMMENDATION WAS FOR US. SO WHILE WE'RE KIND OF ON A TOPIC, WE TALKED ABOUT THE EVENTS THAT ARE IN PHOENIX, WHAT ABOUT OTHER EVENTS THAT ARE FAIRLY REGIONAL, MAYBE EVENTS THAT ARE HAPPENING IN UTAH OR EVEN LAS VEGAS, SOME, SOME OF THOSE THAT WE MIGHT DRAW THOSE PEOPLE IN HERE BEFORE OR AFTER THOSE EVENTS. I, I DON'T KNOW WHAT THOSE MIGHT BE, BUT NOT TO JUST INCLUDE THE ONES WHEN PHOENIX, WHEN YOU GUYS ARE THINKING ABOUT IT, BUT SORT OF THINK MORE REGIONALLY. ALRIGHT, THANK YOU COUNSEL FOR YOUR DIRECTION. UM, NEXT UP WILL BE THE STATE EXPENDITURE LIMIT. DO WE WANNA TAKE A BREAK? OKAY. ALL RIGHT, ME, I'LL LET YOU CALL US BACK TO ORDER. OH, YOU WANNA HINDER THE SOCIAL? YOU WANNA CALL US BACK INTO, YEAH. OKAY. EVERYBODY BACK IN SESSION TALK ABOUT STATE EXPENDITURE LIMIT, BARBARA. ALL RIGHT. HELLO AGAIN. BARBARA WHITEHORN, DEPUTY CITY MANAGER. UM, THIS IS, I CAN'T REALLY HEAR YOU WELL. OH, SORRY. IS THAT WORKING? OKAY, I'LL JUST GET A LITTLE CLOSER. UM, YOU ALL, AS COUNCIL ARE VERY FAMILIAR WITH THIS. THIS IS THE INFORMATION THAT TO YOU IS GONNA BE LIKE REALLY AGAIN, BUT I WANNA MAKE SURE THAT ANYBODY WHO'S WATCHING THIS FROM THE PUBLIC REALLY UNDERSTANDS THE CONTEXT OF HOME RULE, PERMANENT BASE ADJUSTMENT, WHY THESE ARE THINGS THAT CITIES AND COUNTIES DO. UM, SO IF YOU ALL AS ALREADY EXPERTS CAN BEAR WITH ME FOR JUST A FEW MINUTES, JUST KIND OF TO GIVE OTHER PEOPLE THE OPPORTUNITY TO UNDERSTAND. SO WE HAVE THREE OPTIONS WHEN IT COMES TO THE AMOUNT OF MONEY THAT AS A LOCAL GOVERNMENT IN ARIZONA WE CAN SPEND, THERE'S THE STATE LIMIT, UM, AND THAT'S BASED ON THE 1980 BUDGET, WHICH OF COURSE WE DIDN'T HAVE BECAUSE WE WERE INCORPORATED IN 1988. BUT IT IS AN ESTIMATE THAT THE STATE DID BASED ON OUR POPULATION OF THE TWO COUNTIES THAT WE'RE IN, LIKE OUR PERCENTAGE OF POPULATION AT THE TIME AND THEIR BUDGETS. AND THEN THEY ADJUST THAT ANNUALLY FOR POPULATION GROWTH AND AN INFLATION FACTOR THAT IS APPLIED STATEWIDE. AND OUR LIMIT UNDER THAT MODEL IS FOR THIS CURRENT FISCAL YEAR THAT WE'RE IN, IS 15.4 MILLION. THEN THERE'S HOME RULE WHICH REPLACES THAT LIMIT WITHIN WITH THE ANNUAL ADOPTED BUDGET. AND THAT HAS TO BE PUT BEFORE THE VOTERS EVERY FOUR YEARS. AND THAT ELECTION WOULD BE THIS COMING YEAR. AND THEN THERE'S A PERMANENT BASE ADJUSTMENT WHICH REPLACES THE 1980 BASE WITH A NEW BASE. AND THEN THE SAME POPULATION GROWTH AND INFLATION IS APPLIED. THAT ALSO REQUIRES A VOTE, BUT ONLY WHEN IT'S NECESSARY. SO BASICALLY WHEN YOU BUMP UP AGAINST THE NEW LIMIT, THAT'S WHEN IT'S NECESSARY. SO THIS IS WHERE THAT COMES FROM, UM, FOR ANYONE WHO'S INTERESTED, IT'S PART OF THE ARIZONA CONSTITUTION AND, AND THE ADJUSTMENTS ARE ALSO PART OF THE CONSTITUTION. SO IT'S NOT AS IF IT'S A METHOD TO GET AROUND A LAW. IT'S ACTUALLY WRITTEN INTO THE LAW THAT LOCAL GOVERNMENTS CAN MAKE THESE ADJUSTMENTS. UM, THIS IS THE CALCULATION OF OUR LIMIT AND I JUST ALWAYS LIKE TO POINT OUT THAT THE STATE LIMIT THAT THEY GIVE US WHEN YOU MULTIPLY IT OUT DOESN'T QUITE WORK, WHICH MAKES ME INSANE AS LIKE SOMEONE WHO WAS IN ACCOUNTING FOR WAY TOO LONG. UM, BUT IT'S CLOSE. AND OUR CURRENT BUDGET THAT IS SUBJECT TO THIS 15.4 LIMIT IS ABOUT $81 MILLION. AND THAT EXCLUDES ANYTHING THAT IS NOT OUR MONEY, WHICH IS GRANTS BECAUSE [01:30:01] THEY'RE BASICALLY PASSING THROUGH, RIGHT? IT'S NOT OUR MONEY AND UH, IT'S NOT A LOCAL REVENUE AND THEN DEBT SERVICE, WHICH IS EXCLUDED BECAUSE WE ARE COMMITTED TO PAYING THAT. AND, AND INTERESTING FACT THAT I, I THINK WHEN WE THINK ABOUT AN EXPENDITURE LIMIT AND TAXES AND ALL THOSE THINGS IN CONTEXT, YOU SORT OF ENVISION THAT IF THE STATE'S SAYING YOU CAN'T SPEND THIS, YOU DON'T GET TO COLLECT IT. BUT THE REALITY IS WE STILL COLLECT IT. EVEN IF THE EXPENDITURE LIMIT WERE TO DROP DOWN TO THE 15.4, WE WOULD STILL COLLECT ALL OF THE 70 MILLION IN REVENUE AND IT WOULD JUST SIT IN THE BANK AND WE, WE COULD INVEST IT, BUT WE COULD NOT SPEND IT. 90% OF CITIES IN ARIZONA USE ONE OF THE ADJUSTMENT MODELS. IT'S ABOUT 50 50 BETWEEN A HOME RULE AND PERMANENT BASE AND OVER. THIS IS REALLY BECAUSE OVER TIME THE LIMIT HAS BECOME LESS APPLICABLE. IT MOVES FURTHER FROM THE ECONOMIC AND BUDGETARY REALITY OF INDIVIDUAL CITIES BECAUSE IT IS USING THE SAME INFLATION FACTOR FOR THE WHOLE STATE. UM, WHICH ARGUABLY IT'D BE REALLY HARD TO COME UP WITH INFLATION FACTORS BASED ON INDIVIDUAL ECONOMIES. SO I DO UNDERSTAND THAT, BUT IT IS, UH, CHALLENGING. SO THE OPTIONS FOR US, AND I, AND I KNOW THAT WE ARE GOING WITH HOME RULE BASED ON YESTERDAY'S CONVERSATION, BUT THE OPTIONS FOR THE CITY, OF COURSE ARE HOME RULE OR A PERMANENT BASE ADJUSTMENT. UH, THERE WERE EIGHT CITIES I THINK THAT DID THESE IN 2024. MESA IS ESTIMATING 30 YEARS UNTIL THEY'LL NEED TO DO IT AGAIN. AND SCOTTSDALE WENT 18 YEARS SINCE THEIR LAST ELECTION WHEN IT PASSED IN 24. SO THAT'S JUST THE OVERVIEW OF THAT. IF ANYONE HAS ANY QUESTIONS, I'M HAPPY TO ANSWER THEM. I I KNOW Y'ALL REALLY ARE EXPERTS AT THIS. SO ON THE PBA, IS THERE A REQUIREMENT ON WHAT ELECTION IT CAN GO TO? CAN WE GO TO ANY ELECTION ON THE PA MOVING FORWARD? PRIMARY VERSUS GENERAL? OH, AND EVEN ON, ON OR OFF THE ELECTION SIDE . SO COUNCILOR FURMAN, THE, THE QUESTION WAS WHETHER WE CAN DO A PBA ANY ELECTION. I DON'T THINK WE CAN DO A PBA ON A SPECIAL ELECTION. SO I THINK IT HAS TO BE ON THE, THE PRIMARY GENERAL ON, ON THAT ELECTION CYCLE. BUT IT, IT DOESN'T MATTER WHEN, AND THEY'RE NOT MUTUALLY EXCLUSIVE EITHER. YOU CAN DO HOME RULE AND A PBA. SO IF YOU HAVE A PBA TO WHATEVER, THE HOME RULE COULD STILL RUN DURING THAT SAME TIME PERIOD, RIGHT? YOU COULD POTENTIALLY ADOPT HOME RULE AND THEN DECIDE LET'S TRY A PBA MID HOME RULE AND YOU KNOW, IF IT DIDN'T PASS, YOU WOULD STILL HAVE HOME RULE. ANYTHING ELSE? OKAY, SO MOVING ON TO THE BUDGET MODEL FOR THIS COMING YEAR, UM, WE REALLY WANTED TO EVALUATE EXPENDITURES. I MEAN, IT'S ONE THING TO SAY WE'RE GONNA KEEP REVENUES FLAT, BUT CONSIDERING ALL OF THE EXPENDITURES, HOW MUCH WE'RE BUDGETING VERSUS HOW MUCH WE'RE SPENDING IS REALLY CRITICAL. SO I WANTED TO START WITH KIND OF WHAT ARE THE STANDARD BUDGETING MODELS IN LOCAL GOVERNMENT? AND THIS IS FROM GFOA, UH, LINE ITEM BUDGETING IS BASICALLY WHERE EVERY LINE ITEM, AND WE DO BUDGET AT THE LINE ITEM LEVEL, BUT LINE ITEM BUDGETING IS WHERE LITERALLY THE BOARD OR COUNCIL APPROVES EVERY SINGLE LINE ITEM WITHIN THE BUDGET LIKE THEY'RE SAYING, OKAY? AND THAT'S WHERE YOUR BUDGETARY CONTROL IS. UM, IT IS A, A VERY EXACTING FORM OF BUDGETING AND YOU USUALLY SEE IT IN VERY SMALL, UH, COUNTIES OR CITIES BECAUSE IF YOU HAVE LINE ITEMS LIKE WE HAVE 3,600 LINE ITEMS, YOU PROBABLY CAN'T DO LINE ITEM BUDGETING WITH MORE THAN TWO OR 300 AND HAVE IT BE REALISTIC. UM, PERFORMANCE BASED AND PROGRAM BASED BUDGETING ARE VERY POPULAR. THIS IS WHERE YOU HAVE METRICS AND MEASURABLE RESULTS THAT YOU TIE YOUR BUDGET TO AND YOU MAKE BUDGETARY DECISIONS SORT OF BASED ON THOSE. DID THIS PROGRAM ACCOMPLISH WHAT WE EXPECTED? DO WE WANNA, YOU KNOW, CONTINUE TARGET BASED IS MY LEAST FAVORITE. IT'S PROBABLY THE EASIEST, BUT IT'S WHERE YOU SAY, UH, WE THINK REVENUES ARE GONNA INCREASE 2%, SO EVERYBODY'S BUDGET CAN INCREASE 2% GO FORTH. THAT'S NOT AWESOME. IT'S REALLY DOESN'T, UM, DOESN'T HELP YOU REALLY UNDERSTAND WHERE YOU'RE SPENDING THE MONEY AND WHERE THE MONEY'S NEEDED. AND THAT'S WHY I DON'T REALLY LIKE IT BECAUSE YOU'RE JUST SAYING EVERY DEPARTMENT GETS X PERCENTAGE. UM, ZERO BASE IS A MORE DIFFICULT METHOD OF BUDGETING, BUT IT IS A VERY GOOD OCCASIONAL METHOD TO EVALUATE [01:35:01] YOUR EXPENDITURES AND REALLY UNDERSTAND HOW MUCH THEY NEED TO BE. AND ESSENTIALLY YOU ZERO EVERY LINE ITEM AND THEN DEPARTMENTS GO IN AND THEY SAY, WE NEED THIS MUCH FOR THIS ITEM, LIKE PROFESSIONAL SERVICES, WE NEED 40,000 BECAUSE IT'S GONNA COVER CONTRACTS FOR X, Y, AND Z THAT WE ESTIMATE AT THESE AMOUNTS. AND EACH LINE ITEM IS JUSTIFIED LIKE THAT WITHIN THE BUDGET. UM, HISTORICALLY, CAN I ASK A QUESTION? YES, PLEASE. CAN YOU GO BACK TO THAT PRIOR SLIDE? IF WE WERE INTERESTED IN PERFORMANCE BASED OR PROGRAM BASED BUDGETING, DO WE HAVE THE CAPABILITY TO DO THAT RIGHT NOW WITH OUR SYSTEMS? RIGHT NOW? I WOULD SAY NOT FOR 27, BUT I THINK IT IS A GOOD MODEL AS SOMETHING TO CONSIDER IN FURTHER YEARS BECAUSE I THINK ONCE WE HAVE A REALLY GOOD HANDLE ON THE EXPENDITURES, THEN IMPLEMENTING SOMETHING LIKE THAT WHERE IT'S ESSENTIALLY COUNCIL SAYING, THESE ARE THE PROGRAMS, THIS IS THE PERFORMANCE WE WANNA SEE IN THESE AREAS, AND THEN WE BASE THE BUDGET ON THAT. I THINK IT'S, IT'S A VERY GOOD MODEL AND I THINK WE COULD DO IT. IT IS, UM, IT IS MORE OF A LIFT ON THE PLANNING END WITH COUNCIL AND I WOULD SAY IF WE WANTED TO DO THAT, WE WOULD WANT TO START CONSIDERING 28. REALLY AS SOON AS 27 STARTS IT. DO WE NEED TO HAVE THE NEW ERP SYSTEM IMPLEMENTED IN ORDER TO MEASURE FOR SOME THINGS? I WOULD SAY YES, BECAUSE IT WILL BE A WHILE BEFORE WE HAVE COMMUNITY DEVELOPMENT. SO, YOU KNOW, THERE ARE SOME PERFORMANCE BASED THINGS THAT WE COULD SAY, WE WANT TO REACH THIS PLACE AND WE KNOW WE CAN'T UNTIL THAT ERPS IN PLACE. I THINK IN, IN SOME OTHER PLACES WE ABSOLUTELY COULD BECAUSE WE HAVE QUESTA THAT WE'RE USING FOR BUDGETING AND IT'S PRETTY ROBUST. CAN YOU HAVE A, CAN YOU IMPLEMENT IT OVER TIME? YES, YES. YEAH, IT, IT, YOU NEVER HAVE TO DO LIKE ALL OR NOTHING WITH, WITH ANY OF THE METHODS REALLY. THANK YOU. ABSOLUTELY. OKAY, SO NEXT IS REALLY HISTORICALLY WHAT HAS SEDONA BEEN DOING? UM, WE DEVELOP EVERYTHING ON A LINE ITEM BASIS. NOW YOU ALL DON'T APPROVE EVERY LINE ITEM BECAUSE IT WOULD TAKE YOU FOREVER. UM, EXPENDITURES HAVE TO BE JUSTIFIED. WE DO REQUIRE JUSTIFICATION, UM, BUT THE LINE ITEMS AREN'T SET TO ZERO. WE START HISTORICALLY THE BUDGET FROM, WHAT WAS IT LAST YEAR? WE LIKE POPULATE IT WITH THAT AND THEN, UH, DEPARTMENTS CAN ADJUST IT UP OR DOWN. UM, WITH ZERO BASE OF COURSE YOU JUST ZERO IT AND THEY POPULATE IT FROM THERE. UH, WE DO USE PERFORMANCE MEASURES TO TRACK RESULTS AND THEN DECISION PACKAGES ARE PART OF THE TARGET. SO WE'VE GOT ALL FOUR METHODS IN OUR MODEL HISTORICALLY. UM, BUT THIS COMING YEAR FOR FISCAL 27, WE REALLY WANNA FOCUS ON ZERO BASE AND LOOKING AT THOSE EXPENDITURES MUCH MORE CRITICALLY AND TRYING TO BUDGET IN A WAY THAT SAYS, OKAY, THIS IS WHAT WE ACTUALLY THINK WE'RE GONNA SPEND. UM, RATHER THAN SAYING, OKAY, OUR BUDGET'S ALWAYS BEEN THIS, SO WE'RE GONNA KEEP IT THERE. I THINK IT'S, IT'S ESPECIALLY GIVEN THE ECONOMIC CONDITIONS AND UNCERTAINTY AND THE PRESSURES THAT WE DON'T REALLY KNOW THE IMPACT OF. I THINK THIS IS A REALLY IDEAL TIME TO DO THIS SORT OF DEEP DIVE. AND THE DEPARTMENTS ARE ALREADY AWARE AND HAVE STARTED, UH, LOOKING AT THIS. IT'S SOMETHING THAT DOES TAKE DEPARTMENTS A LONG TIME, SO THEY'RE ALREADY ON THIS AND THE ONLY PART THAT WILL STILL BE HYBRID IS DECISION PACKAGES IN ZERO BASE, LIKE FULL ON PURE ZERO BASE. ANYTHING THAT ANYBODY WANTED, THEY WOULD JUST BASICALLY BUILD INTO THEIR BUDGET FROM A ZERO BASE. I THINK IT'S REALLY IMPORTANT THAT ANYTHING ADDITIONAL COME TO COUNCIL. SO WE'RE STILL USING THAT HYBRID PIECE. ANY QUESTIONS ON THIS ONE? OKAY, SO WHY, UM, I JUST THOUGHT THIS WAS IMPORTANT. CITY COUNCIL AND COMMUNITY INTEREST, THE CITIZENS BUDGET WORK GROUP LAST YEAR BROUGHT IT UP. I THINK IT'S UM, I THINK IT'S IMPORTANT. IT'S REALLY IMPORTANT FROM A STEWARDSHIP OF PUBLIC FUNDS AND REALLY BEING FISCALLY RESPONSIBLE AND ACCOUNTABLE TO THE COMMUNITY. UM, THE ECONOMIC UNCERTAINTY I'VE ALREADY SPOKEN TO AND I THINK BECAUSE WE ALREADY DO EXPENDITURE JUSTIFICATION, IT IS NOT AS HEAVY A LIFT FOR OUR DEPARTMENTS AS IT OTHERWISE WOULD BE. [01:40:03] SO NOW I'M JUST GONNA GO INTO SOME HISTORICAL BUDGETING AND PERFORMANCE, UM, WHICH ALSO HAS DRIVEN MY RECOMMENDATION TO DO THE ZERO BASE. UM, THIS JUST SHOWS TOTAL OPERATIONS BUDGET AND TOTAL CIP BUDGET. AND YOU CAN SEE THAT THE TOTAL BUDGET OVER THE LAST FEW YEARS HAS GONE UP AND DOWN. AND THAT IS MOSTLY BASED ON THE CAPITAL BUDGET. UM, AS WE HAVE BIG PROJECTS THEN, UH, YOU KNOW, FEWER OF THEM AND THEN MORE DEPENDING ON COUNCIL'S DIRECTION, OBVIOUSLY WITH CAPITAL SPENDING, UM, WE'LL SEE WHERE THAT GOES NEXT YEAR. THIS IS TOTAL BUDGET VERSUS ACTUAL, AND SORRY THAT THIS IS REALLY BUSY, BUT I THINK IT'S IMPORTANT TO SORT OF, OF SEE LIKE WHEN WE BUDGETED IN TWENTY FIVE, A HUNDRED AND SIX 0.1 MILLION WAS THE TOTAL BUDGET WE SPENT 74 MILLION. THAT'S A BIG GAP, RIGHT? SO I THINK IT'S IMPORTANT WHEN WE'RE SEEING THIS CONSISTENT GAP AND THE GAP IS GETTING BIGGER, THAT WE REALLY START TO SAY, OKAY, WHERE, WHY IS THIS HAPPENING AND WHERE IS IT HAPPENING? AND I DID AN EX, WE DID AN EXECUTION RATE FROM 2006 THROUGH 2025 AND THEN FORECAST FOR THIS COMING YEAR. AND THE AVERAGE THROUGH 24 OR 25, I MAY HAVE PUT 24, MEANING 25 WAS ABOUT 74%. IT SHOULD BE HIGHER THAN THAT BECAUSE OF THE CONSTRAINTS AND THE LEGAL CONSTRAINTS IN ARIZONA. IT IS, UM, WE CAN'T EXPECT IT TO BE LIKE DEAD ON, BUT IT SHOULD, WE SHOULD HAVE A HIGHER RATE. SO WHEN WE BREAK IT INTO CIP AND OPERATIONS FOR 2025, YOU KNOW, THE MOST RECENT YEAR WE'VE FINISHED THE CAPITAL EXECUTION WAS 67.5 AND OPERATIONS WAS 70.1. UM, BARBARA? YES. HAVE YOU LOOKED AT THIS KIND OF PLOT FOR OPERATIONS, BUDGET OPERATIONS VERSUS ACTUAL OPERATIONS? YES. WHAT DOES THAT LOOK LIKE? UM, OPERATIONS, THE EXECUTION RATE HAS WIDENED. UM, SAME WITH CIP, BOTH HAVE WIDENED, SO WE'VE HAD LARGER BUDGETS AND LOWER EXECUTION. THERE ARE MULTIPLE DRIVERS FOR THAT. I DON'T HAVE THAT GRAPH OVER TIME, BUT UM, WE CAN CERTAINLY PROVIDE THAT. AND I'M NOT SURE I CAN GO ALL THE WAY BACK TO 2006 WITH IT, BUT I CAN DO LIKE SEVERAL YEARS. UM, AND THIS SLIDE I WAS JUST KIND OF ALL THE QUESTIONS I ASKED, LIKE LOOKING AT THIS AND WHEN STERLING AND I WERE TALKING ABOUT IT IS LIKE, ARE WE OVER BUDGETING? LIKE ARE WE TRULY JUST OVER BUDGETING OR WHAT ARE THE DRIVERS, LIKE WHAT IS CONSISTENTLY UNDER BUDGET? ARE WE REFLECTING, YOU KNOW, ACTUAL SPENDING TRENDS? DO WE HAVE SALARY SAVINGS? TURNOVER DRIVES, LIKE TREMENDOUS SA SAVINGS IN THE BUDGET. IN REALITY, TURNOVER IS VERY COSTLY, BUT IN THE, FROM A BUDGETARY PERSPECTIVE, WHEN YOU HAVE A LOT OF TURNOVER, ESPECIALLY IN HIGHER PAID POSITIONS, YOU HAVE THESE BIG GAPS IN THE BUDGET. AND THEN IT'S LIKE, ARE WE JUST BEING OVERLY AMBITIOUS, PARTICULARLY IN CAPITAL? SO I, THESE ARE, THESE ARE JUST THE QUESTIONS I ASKED AND THEN WE LOOKED AT LIKE WHAT IS THE IMPACT OF THE ARIZONA LAW ON OUR BUDGETING? ONE OF THE MOST IMPORTANT THINGS FROM THE PERSPECTIVE OF BUDGETING TO THINK ABOUT ARIZONA IS THAT WE CAN'T ALLOCATE RESERVES DURING THE YEAR. SO IF IT'S NOT IN THE BUDGET, WE CAN'T SPEND IT UNLESS THERE'S A DECLARED EMERGENCY, RIGHT? WHICH IS HOPEFULLY VERY UNLIKELY WHEN, WHEN YOU'RE IN THAT POSITION, THERE IS A SENSE OF, OKAY, I HAVE TO MAKE SURE I HAVE ENOUGH MONEY TO, TO DO THE THINGS I NEED TO DO. AND IT FORCES AN OVER BUDGETING BEHAVIOR LIKE STATEWIDE. IT DOESN'T MEAN THAT THAT'S BAD, BUT WHAT I WOULD LIKE TO, TO GET TO FOR OUR CITY IS A HIGHER EXECUTION RATE, LIKE 90% OR ABOVE AND CONTINGENCIES TO COVER THINGS THAT MIGHT HAPPEN. 'CAUSE I THINK OVER TIME WHAT HAPPENS IS THAT WE THINK, OKAY, WELL I MIGHT GET TO THIS LIKE IN CIP WE REALLY WANT TO DO THIS COOL PROJECT AND WE MIGHT GET TO IT OR WE MIGHT FINISH THIS BY THIS MONTH. AND THEN WHEN THINGS ARE DELAYED WE CAN'T GET THERE AND WE HAVE THIS LOW [01:45:01] EXECUTION RATE, RIGHT? IF WE INSTEAD BUDGET FOR WHAT WE BELIEVE THE REALITY'S GONNA BE NOT UNDER BUDGET AND NOT SO FAR OVER AND THEN CREATE SPECIFIC CONTINGENCIES, IT DOESN'T NECESSARILY REDUCE THE BUDGET TREMENDOUSLY. BUT WE HOPEFULLY CAN IMPROVE THAT EXECUTION RATE AND WE CAN SPEAK TO HOW MUCH OF CONTINGENCY DID WE HAVE TO USE BASED ON, YOU KNOW, WHAT HAPPENED DURING THE YEAR AND THEY WOULD BE IN BUDGET ACCESSIBLE DURING THE YEAR RATHER THAN THE RESERVES, WHICH ARE NOT. YES, YES, EXACTLY. HOW MUCH HAVE WE SPENT OUT OF OUR, WELL, SO EARLY IN THE YEAR, I GUESS IT IS, WE, WE HAVEN'T SPENT MUCH OUT OF THE CONTINGENCY. COUPLE HUNDRED THOUSAND MAYBE. AND THOSE WERE THE TOURISM, UH, ADDITIONAL TOURISM, UH, MARKETING. SO, YOU KNOW, AS I, AS I SAID, THE, THE ARIZONA, UH, STATUTES REALLY DRIVE HIGHER BUDGETS AND LOWER EXECUTION RATES. YES. BARBARA, THIS QUESTION'S PROBABLY FOR KURT. HOW HIGH IS THE BAR ON THE DECLARING AN EMERGENCY TO OVERRIDE THE BUDGET GIVEN THAT WE DECLARED AN EMERGENCY TO LOCK IN? UH, THE QUESTION WAS, UH, WHAT WOULD BE AN EMERGENCY FOR, FOR A, UH, TO OVERRIDE THE BUDGET, THE ADOPTED BUDGET? I THINK IT'D HAVE TO BE, THERE'S A DEFINITION OF ACTUALLY EMERGENCY IN UH, A RS AND THAT'S WOULD BE GENERALLY SOME TYPE OF, OF PHYSICAL DISASTER OR, UM, STATE DECLARED DOESN'T HAVE TO BE STATE DECLARED. WE CAN HAVE OUR OWN LOCAL ONE. UM, BUT IT WOULD BE WHAT I THINK WHAT YOU'D NOR GENERALLY THINK OF AS, AS AN EMERGENCY, LIKE FAILURE, WASTEWATER SYSTEMS, MASSIVE FAILURE. YES, THAT WOULD WORK. YEP. FLOODS, FIRES, SOMETHING ALONG THOSE LINES THAT WERE LOCAL. OKAY. AND I GUESS THIS IS JUST LOOKING AT THE SAME SLIDE. DUNNO WHY I REPEATED IT. JUST THOUGHT I WOULD, I GUESS. UM, SO WHAT WE'D LIKE TO DO IS NARROW THAT GAP. I'D, I'D REALLY LIKE TO SEE THAT GAP NARROWED, WHICH, YOU KNOW, WOULD MEAN THAT WE WOULD LIKELY PUT MORE IN RESERVES, WHICH I THINK IS ALWAYS GOOD. UM, I THINK THERE'S A LOT OF OPPORTUNITY FOR US TO REALLY ANALYZE THE BUDGET AND GET TO A HIGHER EXECUTION RATE AND MORE, I, I GUESS JUST PRUDENCE, I WANNA BE REALLY PRUDENT AS A CITY IN THE WAY THAT WE'RE BUDGETING AND CONSIDERING HOW WE'RE SPENDING THE LIMITED RESOURCES WE HAVE, EVEN THOUGH WE HAVE MORE RESOURCES THAN WE CAN SPEND ANNUALLY, THAT DOESN'T MEAN THAT THERE JUST NEVER ENDING, YOU KNOW, THEY'RE, THEY'RE LIMITED AND THEY'RE PUBLIC. SO IT'S REALLY IMPORTANT THAT WE ARE PRUDENT AND FISCALLY RESPONSIBLE. SO THAT'S REALLY ALL I HAVE ON THAT NOW I'VE JUST GOT A SLIDE THAT'S, YOU KNOW, DISCUSSION. YES MA'AM. SO WHEN WE SEE THE BUDGET, THE INFORMATION'S ALL THERE THAT I'M ABOUT TO SAY, BUT I DON'T SURE IT'S CLEAR. I'M NOT SURE IT'S EASY TO READ AND UNDERSTAND. SO FOR INSTANCE, WHEN WE LOOK AT THE CIP BUDGET, SINCE THAT SEEMS TO BE OUR BROADEST TOPIC OF CONVERSATION, UH, WE, WE CAN SEE HOW MANY ARE PLANNED TO BE FINISHED IN THAT FISCAL YEAR IN 27. WE CAN SEE HOW MANY THEY WANT TO START OR ARE MIDWAY BUT WON'T BE FINISHED IN 27, THEY'LL BE FINISHED IN 28 OR WHATEVER, RIGHT? SO WE CAN SEE THAT ROLLOUT, BUT IT'S NOT REALLY CLEAR LIKE ARE THERE PROJECTS THAT WE SHOULD JUST SAY DON'T START UNTIL WE FINISH ALL THE PROJECTS. WE SAY WE'RE GONNA FINISH IN 27, LET'S GET ALL OF THOSE DONE FIRST AND THEN WE CAN LOOK TO SEE WHETHER OR NOT THERE'S ANY THAT THEY WANNA START IN 27, UM, OR, OR CONTINUING IN 27 AND WHAT DOES THAT MEAN FOR THE BUDGET? SO THE LAST THING YOU DO IS START NEW PROJECTS UNTIL YOU KIND OF REALLY UNDERSTAND THE IMPACT OF ONES THAT WON'T BE FINISH. THEY WON'T FINISH TILL NEXT YEAR OR THEY'RE GONNA FINISH THIS YEAR. BECAUSE IT, I FEEL, IT FEELS LIKE WE START A LOT OF PROJECTS. WE DON'T REALLY HAVE ALL THE PERSONNEL IN ORDER TO EVEN MOVE THEM FORWARD TO THE THE POINT WHERE WE CAN START RF PING THEM OUT AND HAVING SOMEBODY ELSE WORKING ON IT. IT FEELS THAT WAY TO ME. AND I THINK IT FEELS THAT WAY 'CAUSE IT'S NOT CLEAR, EASY TO UNDERSTAND. I SORT OF HAVE TO BUILD MY OWN INTERNAL GANTT CHARTS ON, ON PROJECTS AND I THINK THAT MAKES IT DIFFICULT. UM, AND THEY'RE NOT THE, IT'S [01:50:01] NOT THE ONLY AREA WHERE WE HAVE THAT. BUT SINCE WE'RE PICKING ON CIP I'M JUST WANTED TO CONTINUE. BUT IS THERE A WAY FOR US TO FIGURE THAT OUT AND SHOW THAT MORE CLEARLY? I DON'T KNOW WHO TO LOOK AT. YES. YES, ABSOLUTELY. AND I THINK IT'S THE JANUARY WORK SESSION THAT IS, UH, SPECIFIC TO CIP AND WHAT WE ACTUALLY, EXACTLY WHAT WE ARE HOPING FOR FROM COUNCIL IS SORT OF THAT STOP, START, CONTINUE CONVERSATION. HOW MUCH DO WE WANT TO START AS WE'RE, YOU KNOW, LIKE IN THIS POSITION OF WANTING TO BE EXTRA FISCALLY VIGILANT? AND I WANT TO TAG ONTO THAT. I, I'M CONCERNED ABOUT LOSING FOCUS ON A PARTICULAR PROJECT. SO WE HAVE A LIMITED NUMBER OF PROJECT MANAGERS AND IF THEY'RE JUGGLING TOO MANY PROJECTS, ARE THEY TAKING THEIR EYE OFF THE BALL ON PROJECT A IN ORDER TO BEGIN PROJECT B? AND IS OUR CULTURE, SO OUR, OUR EXPECTATIONS SET SO HIGH THAT THE CULTURE SAYS WE HAVE TO, YOU KNOW, RUSH THROUGH OR WE HAVE TO ACHIEVE 'CAUSE WE HAVE SO MANY PROJECTS ON THE LIST THAT WE HAVE TO ACHIEVE ALL OF THESE THINGS IN WHAT MAY BE AN UNREASONABLE AMOUNT OF TIME. SO THAT, THAT'S ANOTHER THING I GET CONCERNED ABOUT. AND WE'VE HAD, WE'VE HAD SOME INSTANCES WHERE I THINK PROJECTS HAVEN'T BEEN MANAGED AS TIGHTLY AS THEY SHOULD HAVE COULD HAVE AND IT CONCERNS ME. SO I'LL JUST TAG ONTO THAT AS ABOUT CULTURE, UM, WE COULD TAKE AN APPROACH THAT WE SAY LESS IS MORE. UM, AND THAT GOES ALONG WITH FEWER, IS BETTER MEANING THAT WE CAN DO FEWER PROJECTS BETTER, UM, THAN WE CAN WHEN WE HAVE MANY PROJECTS. THAT'S TO YOUR POINT, AND LESS IS MORE IS SOMETIMES WE, AS WE GO THROUGH FEWER PROJECTS, WE FIND WAYS IN WHICH WE CAN DO THEM NOT ONLY BETTER, BUT THEY MIGHT ACTUALLY SOLVE ANOTHER PROBLEM THAT'S ON OUR LIST, BUT WE WOULDN'T SEE IT BECAUSE THERE'S TOO MANY TREES IN THE FOREST. SO THAT'S JUST A TAG ONTO THE CULTURE. OH, I RIGHT HERE. UM, THANK YOU MAYOR. UH, WELL ONE OF THE THINGS THAT A WAY YOU COULD CAPTURE THAT IN A GENERAL DIRECTION TO STAFF AT THIS POINT, AND THEN AGAIN THERE'S THE DEEP DIVE ON THE CAPITAL BUDGET SCHEDULED IN JANUARY AT YOUR WORK SESSION IS WHEN YOU PRESENT, WHEN YOU PREPARE THE BUDGET DEPARTMENTS. UM, THIS IS KIND OF WHAT I'M HEARING AND INTERESTED IN ANY OTHER COUNCIL COMMENTS? UM, FIRST FINISH WHAT YOU HAVE STARTED AND THEN IF YOU'RE GONNA PROPOSE SOMETHING NEW, I WOULD SAY, HOW DOES IT TIE INTO THESE PRIORITIES THAT YOU JUST SELECTED YESTERDAY? UM, AND USE THAT TO AS THE FILTER FOR IF WE'RE GONNA PROPOSE ANYTHING NEW, WHETHER THAT'S ANY DECISION PACKAGE OR A CAPITAL PROJECT. YOU KNOW, HOW DOES IT TIE INTO THIS? UM, WE DO HAVE OPPORTUNITY PROJECTS I'D CALL 'EM WHERE WE HAVE, YOU KNOW, GRANT FUNDING COMING AND THERE'S NOT A LOT OF MATCH OR ANY MATCH. AND MAYBE AS A POLICY, YOU KNOW, THE COUNCIL STILL WANTS TO CONSIDER THESE OPPORTUNITIES THAT WE'VE APPLIED FOR. UM, BUT IF IT'S SOLELY FUNDED BY THE CITY, UM, WE COULD CERTAINLY PUT THEM IN AN ORDER OF IS IT ALREADY UNDERWAY? IF IT'S GONNA BE NEW, HOW DOES IT TIE INTO THIS OR WHATEVER. UM, AND THEN THE BUDGET WORK GROUP HAD ALSO, UM, MADE A RECOMMENDATION AT THEIR FIRST MEETING, WHICH THEY JUST HAD. AND THANKS TO JOLENE AND ED FOR BEING HERE, UM, THAT THEY ASKED THE STAFF, AND I ASSUME THE COUNCIL WOULD AGREE WITH US THAT WITH THE DECISION PACKAGES THEY PUT FORWARD, UM, THAT THERE'S SOME DISCUSSION OR ANALYSIS OF THE QUOTE OPPORTUNITY COST RELATED TO THE PACKAGE AS IN, IF YOU DON'T DO THIS, WHAT HAPPENS OR IF YOU DO IT, WHAT ARE YOU, YOU KNOW, AVOIDING THAT TYPE OF THING. SO, UM, WE WILL DO MORE, UM, ROBUST ANALYSIS I GUESS WITHIN THE DECISION PACKAGES. BUT IN TERMS OF LIKE BUDGET DIRECTION, I WOULD JUST TOSS THAT OUT AS A GENERAL GUIDANCE FOR US WHEN WE'RE DEVELOPING THIS FIRST ROUND TO COME TO YOU. UM, IN TERM OF THE, IN TERMS OF THE OPERATING BUDGET. UM, SO WE HAVE, YOU KNOW, PERSONNEL IS A BIG COST DRIVER ON THE OPERATING SIDE AND I DON'T KNOW IF WE HAD SLIDES ABOUT PERSONNEL [01:55:01] AT ALL. NO. UM, AND SO, UH, AS YOU KNOW, YOU ALREADY IMPLEMENTED A NEW COMPENSATION SCHEDULE FOR ALL THE CITY STAFF, SO WE DON'T NEED TO DO THAT AGAIN, BUT I'LL BRING FORWARD A RECOMMENDATION AROUND, UM, AN AMOUNT FOR A MERIT OR A COLA I GUESS CONCEPT. UM, SO INTERESTED TO KNOW IF THAT, IF THE COUNCIL WOULD LIKE TO SEE THAT IN TERMS OF, UM, THE PERSONNEL SIDE OF THE EQUATION. WE'LL HAVE OUR COST OF OUR, UM, BENEFIT PACKAGE THAT COMES TO US FROM OUR BROKER AND IT JUST IS WHAT IT IS. BUT WE'LL BUILD THAT IN AND I'M SURE IT'LL BE AN INCREASE. IT USUALLY IS FOR INSURANCE. UM, AND THEN ON THE MATERIAL SIDE OF THINGS THAT ARE NOT CAPITAL PROJECTS, THAT'S WHERE I BELIEVE STERLING WAS TALKING ABOUT. WE HAVE THE GENERAL CPI OF 3%, UM, AND IF YOU'RE OKAY WITH US APPLYING THAT, SO WE WOULD BASICALLY HAVE, IF IT'S A FLAT REVENUE, BUT WE KNOW WE'RE GONNA HAVE SOME COST INCREASES ON THE OPERATING SIDE, YOU KNOW, AND THEN WE CAN SEE HOW OUT OF BALANCE WE ARE, IF AT ALL. UM, AND THEN THAT LAST COMPONENT OF THE EQUATION IS THE, IS THE CAPITAL BUDGET. SO JUST VERY HIGH LEVEL, YOU KNOW, THE BASIC COST DRIVERS THAT WE ARE FACED WITH. UM, ANYWAY, JUST THROW THAT OUT FOR DISCUSSION. I HAVE ANOTHER COUPLE OF THINGS TO ADD TO THAT. ONE IS THERE ARE PROJECTS, I THINK I I WAS ON THE GOT APPOINTED TO THE BUDGET COMMITTEE IN 2015. THERE ARE PROJECTS THAT HAVE GO THAT WERE IN THE EITHER CIP OR DECISION PACKAGES THAT GO BACK TO 2015 THAT HAVE NEVER BEEN COMPLETED, NEVER BEEN STARTED. EXAMPLE EXAMPLES, I'M GONNA GIVE YOU AN EXAMPLE. THE CONCESSION STANDS AT POSSE GROUND PARK, WHICH ARE THE RESTROOMS MM-HMM . AND THEY'VE ALWAYS BEEN IMPORTANT TO DO OR NOT, I FORGET THE NAME OF THAT CATEGORY. NOT CRITICAL TO DO. SO THEY GOT BOUNCED, THEY WEREN'T EVEN THAT EXPENSIVE, THEY GOT BOUNCED. I WOULD LIKE TO SEE US LOOK AT SOME OF THOSE THINGS, WHICH I THINK ARE BENEFITS TO OUR RESIDENTS WHO USE POSSE GROUND PARK AND DON'T HAVE A BATHROOM FACILITY THERE THAT WE TAKE THAT THAT CLASSIFICATION GETS RAISED BECAUSE IT'S A BENEFIT TO THE RESIDENTS. AND I TALKED TO JOSH ABOUT THIS YESTERDAY. HE SAID THAT THERE, IT'S GONNA BE DESIGNS GONNA BE PROPOSED IN THIS NEXT BUDGET, BUT I'M TELLING YOU IT HAS BEEN KICKED OUT OF EVERY YEAR THAT I'M AWARE OF THE BUDGET. SO THE WAY IN WHICH THE DEPARTMENT HEADS OR THE DEPARTMENTS CATEGORIZE THESE PROJECTS, I THINK MAY NOT BE UNIFORM. AND SO SOME OF THEM GET A, A HIGHER CLASSIFICATION OF URGENCY. I I THINK THAT'S FAIR BECAUSE EVERYONE HAS SORT OF DIFFERENT PERCEPTION. RIGHT, RIGHT. UM, I THINK IT WOULD VERY HELPFUL FOR STAFF IF WHEN WE'RE DOING THE CIP WE TALK ABOUT THOSE CATEGORIES AND WHAT YOU WOULD LIKE AS FAR AS WHERE SHOULD RESIDENTS BENE RESIDENTIAL BENEFIT FIT WITHIN THERE. LIKE HOW CAN WE WEIGHT THESE CATEGORIES AND WHAT ARE THOSE IMPORTANT THINGS FOR COUNCIL FOR US TO DETERMINE WHAT THE PRIORITY IS? YOU KNOW, FRANKLY WE GET THESE BUDGETS AND THEY'RE SO DETAILED ON SOME LEVEL THAT IT'S HARD TO WRAP YOUR HEAD AROUND ALL THOSE DETAILS AND THEN, AND THEN, AND THEN THEY AREN'T DETAILED ENOUGH ON ANOTHER LEVEL RIGHT. TO WHERE YOU KNOW, THAT THAT, THAT YOU, ONE WOULD UNDERSTAND WHEN THEY GO THROUGH IT THAT THIS IS WHAT IT ACTUALLY MEANS AND WHAT BENEFITS IT, IT DOES HAVE TO THE RESIDENTS. SO IF THEY COULD PULL THAT OUT, IT WOULD, I THINK WOULD BE HELPFUL. SO I THINK WHAT YOU JUST SAID, MAYOR GOES TO WHAT THE CITY MANAGER WAS TALKING ABOUT. IF PROJECTS ARE, UM, CATEGORIZED, FOR LACK OF A BETTER WORD, ACCORDING TO WHAT WE SAID WAS IMPORTANT, ONE OF THE THINGS WE SAID THAT WAS IMPORTANT WAS COMMUNITY. SO, YOU KNOW, YOU CAN SAY WHETHER OR NOT A PROJECT FALLS INTO COMMUNITY HOUSING, LAND USE, MOBILITY, TRANS TRANSIT, CIRCULATION OR ECONOMIC DEVELOPMENT, UM, THEN WE ALREADY KNOW WHETHER OR NOT WE THINK THAT THOSE ARE PRIORITIES. AND THEN WE COULD EVALUATE WHETHER OR NOT WE AGREE [02:00:01] AS TO WHETHER OR NOT THAT IS A COMMUNITY BENEFIT OR WHETHER OR NOT THAT IS A BENEFIT FOR WHATEVER. SO THEN WE CAN HAVE THE DISCUSSION ON THAT ITEM ACCORDING TO THE PRIORITY THAT IT FITS INTO AND WHETHER WE AGREE THAT IS A, IN THE RIGHT PRIORITY. B GIVEN ALL THE OTHER THINGS THAT ARE INSIDE OF THAT CATEGORY. AND GIVEN THE NUMBER OF PEOPLE WE MIGHT BE LIMITED ON THE STAFF SIDE, UM, OR COST THAT WE WOULD NOT THINK IT'S IMPERATIVE AND MAYBE WE DO IT IN 28 OR REEVALUATE IT IN 28 TO SEE IF WE EVEN NEED IT. SO THAT'S ONE OF THE THINGS I FEEL LIKE WE NEVER REALLY DO. LIKE WE'VE NEVER GONE BACK AND REEVALUATED AND SAID, DO WE REALLY NEED THAT? SHOULD WE REALLY KEEP THAT IN THE BUDGET? YOU KNOW, LIKE SOMETHING FROM 20 2015, WE SHOULD HAVE BEEN ASKING THAT QUESTION FOR 10 YEARS AS TO WHETHER OR NOT THE RESTROOM SHOULD BE STILL IN THE BUDGET. AND IF THE ANSWER'S YES, THEN WE SHOULD DO IT. RIGHT. SO THAT'S MY, I'M LOOKING TO SEE IF ANYBODY ELSE WANTS THE MIC. WELL, I I THINK THAT'S EXCELLENT DIRECTION BECAUSE, UM, IT IS EXTREMELY CHALLENGING FROM A STAFF STANDPOINT TO REALLY PRIORITIZE PROJECTS BECAUSE YOUR DIRECTION IS WHAT REALLY SHOULD BE DRIVING, WHICH ARE PRIORITIES, NOT WHAT STAFF THINKS. I MEAN IF IT'S HEALTH AND SAFETY, WE CAN IDENTIFY THAT CLEARLY THAT RISES TO THE TOP FOR EVERYONE. BUT IF WE CAN CREATE A MODEL, UM, SORT OF LIKE WE DID FOR THIS SHARED USE PATHS WHERE WE'RE ASSIGNING WEIGHTS TO DIFFERENT THINGS WITHIN THE CIP, YOU KNOW, IT, DOES IT HAVE A COMMUNITY BENEFIT? IS IT, YOU KNOW, WHATEVER, WE CAN COME UP WITH DIFFERENT CATEGORIES AND WE CAN WORK ON THAT WITH, WITH YOU TO COME UP WITH THOSE CATEGORIES SO THAT THEN WE CAN WAIT THOSE AND SAY, OKAY, THIS PROJECT ROSE TO THE TOP WITH X NUMBER OF POINTS AND HERE'S WHY. UM, I THINK THAT WOULD BE VERY HELPFUL FROM A STAFF STANDPOINT. YOU'RE GOOD. I HAVE ANOTHER AREA WHICH IS, UH, CONTINGENCY. SO I REMEMBER WHEN WE F DID THIS EXERCISE ON ZERO BASED BUDGETING A NUMBER OF YEARS AGO, WE FOUND THAT EACH DEPARTMENT HAD CONTINGENCY AND THEN THERE WAS AN OVERALL CONTINGENCY. SO WE WERE SO THEY BUILT IN CONTINGENCY UPON CONTINGENCY. AND SO THE BUDGETS WERE OVERINFLATED, LET'S JUST CALL IT FOR FEAR THAT SOMETHING WOULD OCCUR DURING THE YEAR AND THERE WOULDN'T BE ENOUGH MONEY, WHICH DOESN'T REALLY HAPPEN, UH, TO THE DEGREE THAT THERE'S THE CONTINGENCY IN ALL OF THAT. AND SO MAYBE IN THE, AND THAT'S REALLY MORE, I THINK I'M TALKING ABOUT MORE IN THE OPERATIONAL SIDE. SO IS THAT, DO YOU THINK THAT'S A FACTOR IN WHY THE EXECUTION IS LOW PLUS A VACANCY FACTORS? I THINK YES, AND NOT DELIBERATELY. I THINK IT, IT ISN'T A I'M GOING TO MAKE THIS BUDGET HIGHER THAN IT NEEDS TO BE AS A CONTINGENCY. I THINK IT IS THE THOUGHT PROCESS OF THIS COULD HAPPEN AND THERE'S NOT THAT CRITICAL EVALUATION OF HOW LIKELY IS THIS, IS THIS SOMETHING THAT COULD BE COVERED BY THAT CITYWIDE CONTINGENCY, WHICH OF COURSE WE HAVE NOW. UM, AND I THINK THAT'S WHERE HOPEFULLY ZERO BASE THIS TIME CAN GET US TO THAT PLACE WHERE THE, THE LEADERSHIP CAN ALL SORT OF GET ON BOARD WITH THAT. OKAY. WE SORT OF HAVE EACH OTHER'S BACK, IF YOU WILL, LIKE AS A CITY AS A WHOLE, WE ARE BUDGETING FOR THIS CITY AND NOT FOR OUR INDIVIDUAL AREAS. AND I THINK THAT'S SORT OF THE CRITICAL SHIFT IN THE WAY WE LOOK AT THE BUDGET FROM A STAFF PERSPECTIVE IS THAT WE'RE ALL RESPONSIBLE FOR THE WHOLE AND THE INDIVIDUAL PLACES. IF IF WE'RE INFLATING OVER HERE IN FINANCE, SAY, THEN WE'RE REALLY KIND OF IMPACTING EVERYBODY ELSE. AND IT'S AN EASY PLACE TO NOT BE IN YOUR HEAD, RIGHT? BECAUSE THIS IS YOUR AREA, THIS IS YOUR AREA OF RESPONSIBILITY AND YOU WANNA BE SURE THAT YOU CAN GET EVERYTHING DONE. SO I THINK YES, BUT I, I DO WANNA BE CLEAR THAT I DON'T THINK THERE'S ANYBODY THINKING I'M GONNA OVER BUDGET ON PURPOSE. YEAH. AGAIN, I THINK IT'S A CULTURAL ISSUE. SORRY, I'M NEXT. SO THIS IS PROBABLY A QUESTION FOR ANNETTE WHEN, OR BARBARA ACTUALLY EITHER ONE, UM, WHEN YOU ALL COME BACK AND IT'S NEXT MONTH THAT WE'RE GONNA TALK ABOUT THE CIP BUDGET, [02:05:02] ARE WE, ARE WE GOING TO GET A POSTMORTEM OF HOW IT IS THAT WE'VE CONTINUED TO UNDERSPEND OUR CIP BUDGET? BECAUSE IT, I'VE HEARD YOU KNOW, WE'VE BEEN TALKING ABOUT IT. I'VE HEARD, YOU KNOW, THE MAYOR EXPRESS CONCERN ABOUT WHETHER ENOUGH ATTENTION HAS BEEN PAID AT TIMES. AND I, I CAN'T SPECULATE ON THAT PERSONALLY AT THIS POINT WITHOUT HEARING MORE ABOUT, YOU KNOW, WHAT REALLY DRIVES THE FACT THAT WE OVER BUDGET OUR CIP EVERY YEAR. I'M INTERESTED, YOU KNOW, TO, TO UNDERSTAND THAT I'M CERTAINLY INTERESTED TO SEE WHEREBY BUDGETING SOMEWHAT DIFFERENTLY. DOES IT ALLOW US TO FOCUS MORE RESOURCES ON THE FEW PRIORITIES THAT WE'VE, YOU KNOW, IDENTIFIED YESTERDAY. UM, AND THEN JUST LASTLY, AND I, AND I DON'T WANNA SPLIT HAIRS, BUT I AM BRISTLING SOMEWHAT AT THE NOTION THAT THIS HAS BEEN IMP PRUDENT, AND IT WASN'T SAID IMPUDENT, BUT IT WAS SAYING IT WOULD BE MORE PRUDENT, UM, TO BUDGET, CLOSER TO WHAT WE'RE GOING TO SPEND. AND STRICTLY SPEAKING, WE HAVE HAD A PRUDENT BUDGET BECAUSE IT'S FUNDED. WE MAKE SURE THAT WE CAN FUND OUR FUTURE CIP. SO, UM, I, I GUESS ALL THAT TO SAY, I, I, I DON'T WANT US LIKE BEATING OURSELVES TO DEATH, UH, ABOUT THE FACT THAT WE'VE HAD THIS SIGNIFICANT GAP BETWEEN, UM, BUDGET AND ACTUAL SPEND. I MEAN, IT IS WHAT IT IS AND IT'S, YOU KNOW, IT'S, TO ME, IT'S A CARRYOVER THAT JUST KEEPS GOING, RIGHT? AND, AND I DON'T WANNA BE LOOKING AT THIS AS SOME KIND OF FAILURE OF STAFF OR OF COUNSEL THAT WE HAVE OVER BUDGETED. AND SO, TO ME, WE HAVE BEEN PRUDENT, WE FOLLOWED STATE LAW, OUR RESERVES EXCEED THE REQUIREMENTS. UM, CAN WE DO BETTER? YES. BUT I DON'T THINK IT HAS LACKED PRUDENCE AT THIS POINT. SO THANK YOU. IF, IF I, IF I COULD THANK YOU VERY MUCH FOR THAT. UM, COUNCILMAN, I DON'T, I DON'T THINK WE'VE BEEN IMP PRUDENT AND IF, IF THAT'S HOW WHAT I'VE SAID HAS COME ACROSS, I REALLY APOLOGIZE BECAUSE THAT'S NOT WHAT, I MEAN, I THINK WHAT WE HAVE IS A LOT OF PASSION AND A LOT OF AMBITION TO GET THINGS DONE FOR THE COMMUNITY. AND SOME THAT PASSION AND AMBITION EXCEEDS CAPACITY. I, I THINK IT'S LIKE, WE WANNA DO ALL THESE GREAT THINGS AND WE WANNA GET 'EM DONE RIGHT NOW. AND THE REALITY OF STAFF CAPACITY IS, IS THAT WE CAN'T, WE CAN'T RUN FIVE SOCCER BALLS DOWN AS ONE FORWARD ON A SOCCER TEAM. RIGHT. YOU KNOW, WE CAN ONLY MOVE ONE BALL AT A TIME. AND EACH PROJECT MANAGER SAY, UM, AND I, I THINK THAT'S MORE WHAT DRIVES IT, IS A CULTURAL SENSE OF LET'S GET IT DONE. WE REALLY, WE WANT TO DO RIGHT BY THIS COMMUNITY. AND SO WE'RE, WE'RE TAKING ON MORE THAN MAYBE WE CAN ACCOMPLISH IN A SINGLE YEAR. AND MAYBE WE COULD DO IT ALL, BUT I'M NOT SURE WE WOULD DO IT ALL. WELL, AND I, I THINK YOUR POINT OF LIKE, LET'S NARROW IT DOWN TO THOSE CRITICAL THINGS AND WHAT WE REALLY NEED RIGHT NOW IS REALLY A GOOD MODEL. AND TO CLARIFY A LITTLE BIT, THE SLIDES THAT BARBARA'S SHOWING ARE ALL FUNDS WITH THE BIG F RULED TOGETHER. SO I THINK IF WE BROKE THAT OUT BY THE GENERAL FUND, WHICH IS FULL DISCRETIONARY AUTHORITY OF THE COUNCIL, AND THEN LIKE WASTEWATER AND THE TRANSIT FUND, WHICH ARE DEDICATED FUNDS THAT RE HAVE THEIR OWN, UM, REVENUE SOURCES AND BIG PROJECTS, UM, THAT MIGHT LOOK A LITTLE DIFFERENT IN TERMS OF QUOTE EXECUTION RATES. SO WE KNOW THAT WE HAVE, UH, MONEY SITTING IN, UM, SPECIFIC RESERVES FOR TRANSIT, FOR EXAMPLE, UM, TO PAY FOR BIG PROJECTS THAT HAVE NOT KICKED OFF YET BECAUSE OF A NUMBER OF REASONS. BUT IT DOESN'T MEAN THAT, UM, WE'RE OVER BUDGETED OR WHATEVER IN THAT RESPECT. SO I THINK IF WE WERE TO TEASE THIS OUT MORE, IT MIGHT TELL A LITTLE BETTER OF A STORY DEPENDING ON WHICH SERVICE LINE YOU'RE TALKING ABOUT WITHIN THE CITY. UM, SO WE MAY BE ACCUMULATING FUNDS IN TRANSIT BECAUSE WE HAVE A DEDICATED SALES TAX FOR TRANSIT AND WE HAVEN'T SPENT IT. BUT THAT DOESN'T MEAN THAT IT'S NOT A BAD THING. IT DOESN'T MEAN IT'S A BAD THING. I GUESS I WOULD SAY IT'S JUST THAT, THAT THAT'S A STANDALONE ENTITY AS WELL AS LIKE WASTEWATER FOR EXAMPLE. UM, SO I THINK IF WE WERE [02:10:01] TO NARROW IT DOWN TO, OKAY, WHAT'S HAPPENING IN THE GENERAL FUND WHERE THERE IS DISCRETION, UM, MAYBE THAT WOULD, UM, HELP MAKE IT A LITTLE MORE CLEAR, UM, HOW THAT'S, HOW THAT'S WORKING AND, AND THAT'S THE PRIMARY FUNDER OF CAPITAL, I THINK, RIGHT? YEAH. UM, ANYWAY, HOPE THAT HELPS. YOU KNOW, SOME MONEY WE RECEIVE AND WE'RE NOT SPENDING, BUT THAT'S BECAUSE WE, WE CAN'T, UM, REALLOCATE IT FOR OTHER THINGS. SO JUST GENERALLY GOING BACK TO THE IDEA OF HAVING A SCALE THAT EVERYONE USES SORT OF ROUTINELY, UM, BASED ON PRIORITIES, I THINK WE REALLY NEED TO KEEP A FOCUS ON STAFF AND THAT CAPACITY. UM, AND AS MUCH AS PEOPLE ARE EXCITED ABOUT DOING SOMETHING, IT, IT JUST DOESN'T FEEL AS GOOD WHEN YOU'RE NOT ABLE TO DELIVER AS WHEN YOU CAN DELIVER JUST INTERNALLY JUST FOR STAFF. AND SO I THINK WE NEED TO KEEP THAT AS A MEASURE. UM, YOU KNOW, IF THEY'RE LOSING PEOPLE IN, IN PUBLIC WORKS WELL THAT'S GONNA REDUCE THE AMOUNT OF PROJECTS THEY'RE GONNA BE ABLE TO DO RIGHT FOR THAT YEAR. AND I THINK WE NEED TO SORT OF KEEP THAT IN MIND. AND THE ONLY PEOPLE WHO CAN REMIND US ABOUT THAT IS YOU , BECAUSE WE DON'T REALLY UNDERSTAND WHERE STAFF IS OR HOW MANY YOU HAVE OR HOW JUNIOR THEY ARE. 'CAUSE A JUNIOR PERSON USUALLY IS NOT AS CAPABLE OF DOING AS MANY PROJECTS SIMULTANEOUSLY, UH, WHAT DO YOU CALL 'EM? SOCCER OR JUGGLING, UM, AS A SENIOR MEMBER. SO ALL OF THAT, THE ONLY PEOPLE WHO KNOW THAT ARE YOU. AND SO BE REALLY USEFUL I THINK, FROM MY PERSPECTIVE TO SORT OF UNDERSTAND WHAT THAT CAPACITY IS AS WE LOOK AT THESE PROJECTS, NOT JUST IN CIP BUT ACROSS THE BOARD. NO OTHER, NO OTHER COMMENTS. UM, WE HAVE AMPLE TIME TODAY. WE'VE GONE THROUGH WHAT WE INTENDED TO REALLY FOCUS ON TODAY. SO WE CAN, ANNETTE AND I TALKED, WE CAN GO BACK AND REVISIT YOUR ECONOMY ECONOMIC DEVELOPMENT PRIORITY. UM, WE ALSO PROBABLY HAVE TIME IF YOU WANT TO SORT OF CREATE AN INITIAL, WHAT WOULD YOU LIKE US TO CONSIDER WHEN WE'RE PRIORITIZING CIP SO THAT WE HAVE SOME, SOMETHING FLESHED OUT A LITTLE BIT FOR JANUARY. SO IT'S REALLY UP TO YOU ALL WHICH DIRECTION YOU WANNA TAKE OR IF YOU WANNA DO BOTH AND IN WHAT ORDER YOU'VE ALREADY, I GUESS ARE WE GOING, YOU KNOW, DO COUNCIL MEMBERS HAVE ANY THOUGHTS ABOUT WHAT BARBARA JUST SAID? I WAS JUST ASKING ANNETTE LIKE, WHEN ARE WE GOING OVER THE NEW IDEAS STUFF THAT SEVERAL COUNSELORS SUBMITTED FOR CONSIDERATION? OH, TOMORROW. OKAY. IT'S IN THE BUDGET FOR, I MEAN THE AGENDA FOR TOMORROW. OKAY. UM, THAT'S IN A DIFFERENT PACKET THEN IN THIS, OKAY. YES. HERE. YEAH, IT'S A DIFFERENT PACKET. 'CAUSE THAT ONE WILL ALSO HAVE THE PACKET, THE INFORMATION BACK FROM THE LEADERSHIP TEAM. SO TOMORROW WE'LL REVIEW WHAT THEY'RE WORKING ON TODAY REGARDING THAT YESTERDAY. AND WE'LL GO THROUGH, UM, WE HAVE KATHY SENTIMENT SCHEDULED AT, I, I CAN'T REMEMBER ONLINE TO TALK ABOUT LEGISLATIVE PRIORITIES AND THAT DIRECTION. UM, WE HAVE COUNCIL LIAISON ASSIGNMENTS TO DO I THINK HER, THEY COULD, UM, PULL ANY OF THAT OVER TO TODAY IF THEY WANTED TO. RIGHT TOMORROW. SO, I DON'T DUNNO, MAYOR, IF YOU WANT DO SOMETHING LIKE ASSIGNMENTS WHILE YOU'RE ALL HERE. ANY OF, YEAH. BECAUSE I THINK WE'RE JAMMED TOMORROW, BUT I THINK WE SHOULD FINISH THE DISCUSSION ABOUT THE ECONOMY. JUST WE CAN CLOSE THAT OUT. YEAH. 'CAUSE WE STILL HAVEN'T AGREED ON OUR PRIORITIES AND WE AGREED ON TWO BUT NOT THE THIRD. SO THANK YOU. EXCUSE ME. UM, IF THAT IS WHERE YOU WOULD LIKE TO GO NEXT, UM, IF YOU COULD GIVE ME A MINUTE, I WANTED TO HAVE TONY COME BACK, UM, COMMUNITY DEVELOPMENT ECONOMIC DIRECTOR, SO I CAN GO GET HIM. OKAY. AND I THINK WE CAN MOVE COUNCIL ASSIGNMENTS FOR SURE. AND JUST TO CONFIRM, YESTERDAY YOU ALL THINK YOU ALL DID THE COMMUNITY HOUSING. UM, WASN'T THE MOBILITY IN TRANSIT CIRCULATION THREE? NO. OKAY. IT, WE FLESHED IT OUT, [02:15:01] BUT IT WAS THREE. THREE. OKAY. SO HE JUST , JONATHAN JUST SAID, OKAY, IT'S DONE. OKAY. UH, ECONOMY BELONGS IN EVERYTHING. IT'S NOT UP TO HIM TO SAY THAT. OKAY. THANK YOU. THAT'S HIS IDEA. . IT'S NOT OUR IDEA. ACTUALLY. IT WASN'T JUST HIS. I MEAN, 'CAUSE IT'S SOMETHING THAT I HAD SAID AS WELL. I KNOW, BUT IT WAS THREE THREE, RIGHT. IT WASN'T A MAJORITY. RIGHT. I JUST DON'T WHAT JONATHAN JUST SAID BECAUSE IT DID COME FROM A COUNCIL DISCUSSION. 'CAUSE I BROUGHT IT UP SAYING THAT THE ECONOMY WAS A LENS FOR EVERYTHING. SO THAT'S ALL RIGHT. UM, EXCUSE ME. WHILE WE'RE WAITING FOR TONY TO COME BACK AND JOIN US, I DO HAVE ANOTHER QUESTION ABOUT BUDGET ASSUMPTIONS TO GET, UH, ANY REACTION FROM COUNCIL AT THIS POINT. UM, I'VE HEARD, YOU KNOW, INDIVIDUALLY FROM A COUPLE PEOPLE THAT THERE ISN'T REALLY AN INTEREST IN SEEING, UM, NEW POSITIONS REQUESTED FOR THINGS. UM, IF ANYBODY WANTS TO WEIGH IN ON THAT, OR IF YOU WOULD LIKE US, AGAIN, ANYTHING NEW WOULD BE A DECISION PACKAGE HAS TO TIE INTO THESE, YOU WOULD STILL CONSIDER THOSE? OR WOULD YOU LIKE BARBARA AND I TO GO BACK TO STAFF AND BE LIKE, WHATEVER YOU PROPOSE IT CAN'T HAVE ANY NEW PEOPLE IN IT. UM, WHICH, SO JUST INTERESTED IN YOUR, UM, FEEDBACK ON, ON THAT RELATING TO DECISION PACKAGES THEMSELVES. UM, I I WANNA GO FIRST. YOU CAN GO FIRST. YES. UM, THAT HAS BEEN SOMETHING THAT'S BEEN IN THE BACK OF MY MIND AND I THINK I MAY HAVE EXPRESSED THAT TO YOU BEFORE. UH, WE'RE TALKING ABOUT GOING INTO REAL, REAL PRUDENCE. NOT THAT WE HAVEN'T BEEN, BUT WE ARE LOOKING AT BEING VERY CONSERVATIVE, I THINK. AND I THINK THAT ADDING ANY, UH, ADDITIONAL STAFF AT THIS POINT WOULD BE CONTRARY TO THAT MESSAGE. AND, UH, PERHAPS IF THE ECONOMY DID GO WORSE THAN EVEN IS FORECASTED AS A POTENTIAL, YOU KNOW, IT COULD BE VERY UNFAIR TO PEOPLE IF WE BROUGHT THEM ON AND IT, YOU KNOW, WE WERE NOT ABLE TO SUSTAIN POSITIONS. UM, I THINK WE HAVE A, A A VERY CAPABLE, UH, STAFF, VERY TALENTED STAFF, AND I DON'T, I'M NOT REALLY INCLINED, SOMEBODY WOULD HAVE TO MAKE A VERY COMPELLING CASE TO ME TO BE SUPPORTIVE OF ADDING ADDITIONAL STAFF AT, AT THIS POINT. AND I MEAN, I MEAN, REALLY COMPELLING. SO JUST SO YOU KNOW WHERE MY HEAD IS AT ON THAT AND WOULD LOVE TO KNOW HOW MY COLLEAGUES FEEL. SO I THINK I'M INTERESTED IN A, A NET ZERO ON STAFF, BUT I COULD BE INTERESTED IN SEEING A MIXING OF THE DECK CHAIRS AND UH, YOU KNOW, WE MIGHT DECIDE WE WANT SOME NEW ROLES TO SUPPORT THESE, UH, PRIORITIES. AND MAYBE THEY NEED TO COME OUT OF EXISTING HEADCOUNT BY, YOU KNOW, DE-EMPHASIZING OTHER WORK, UH, IN ORDER TO ACHIEVE. SO I WOULD NOT WANNA SAY NO TO NEW ROLES, BUT A NET ZERO WOULD BE IDEAL, I THINK, UH, IN ORDER TO ACHIEVE THAT. CAN I JUST, YEAH, I THINK THAT'S BETTER SAID THAN I PUT IT AGAIN, I DON'T, I DON'T MIND, AS YOU SAID, A MIXING OF THE DECK CHAIRS. I LIKE THAT PHRASE. IT'S THE, IT'S THE NET. I DON'T WANNA SEE A NET INCREASE, BUT I DON'T MIND ROLES CHANGING IF THAT'S WHAT'S APPROPRIATE TO SUPPORT THE MISSION. I HAVE A THIS MIC TOO. YOU GUYS KEEP THAT. AND THERE'S NO BUTTONS TO LOOK AT. I I'M NOT TOO FAR AWAY FROM WHAT YOU TWO JUST SAID. I WOULDN'T USE SUCH, UH, AN EMPHASIS ON THE KNOW ABOUT NEW PEOPLE. IF THERE'S A PROGRAM NEED AND IT'S WELL JUSTIFIED, I'M WILLING TO CONSIDER IT. WHETHER IT ENDS UP, I I WOULD LIKE IT TO BE CLOSER TO NET ZERO, BUT I'M MORE OPEN TO A REALLY COMPELLING NEED, UH, THAN JUST, I WOULDN'T PUT, I WOULDN'T SAY VERY, I WOULD, RIGHT? YEAH. UM, I'M NOT STUCK ON NET ZERO, BUT I DO THINK THE MESSAGE SHOULD BE, YOU KNOW, REALLY YOU DO HAVE TO JUSTIFY IT. UM, WHETHER IT'S A REARRANGING OF THE DECK CHAIRS OR ADDING A POSITION, I DON'T KNOW IF THERE'S A POSITION THAT'S REALLY WARRANTED, YOU KNOW, I'M FINE WITH THAT. UM, BUT IT SHOULDN'T JUST BE, OH, WELL, YOU KNOW, WE'VE GOT, YOU KNOW, WE'VE GOT A LITTLE BIT OF WORK, SO LET'S BRING ANOTHER PERSON ON BOARD, BRING [02:20:01] I NET ZERO TO ME, WHATEVER. I DON'T NOT CONCERNED ABOUT THAT. THANK YOU. SOLID. UM, SO FIRST LET ME, I'M GONNA PUT A CAVEAT IN THERE. PEOPLE ARE NOT FUNGIBLE. SO I CAN'T TAKE SOMEONE OUT OF PUBLIC WORKS AND, AND MAKE THEM GO WORK IN, YOU KNOW, UM, IN HOUSING OR WHATEVER. THAT'S NOT THEIR SKILLSET. SO IF WE ARE FULLY AT CAPACITY, MEANING THAT ALL OF OUR ROLES ARE FILLED, WE DON'T HAVE ANY EMPTY ROLES TO MOVE, THEN YOU CAN'T MIX THE DECK CHAIRS IN MY MIND. THAT'S, THAT'S PROBABLY NOT FEASIBLE FROM THE PERSPECTIVE OF WHAT PEOPLE'S CAPABILITIES AND TALENTS AND, YOU KNOW, UNDERSTANDINGS ARE. SO I JUST, I JUST WANNA SAY BE, BE CAREFUL WHEN WE, WE TALK ABOUT THIS, IF THERE'S AN EMPTY ROLE IN PUBLIC WORKS AND WE NEED IT OVER IN COMMUNITY DEVELOPMENT, THEN THAT'S MOVING THAT ROLE. UM, I'M OKAY WITH US DOING THAT IF WE SAY WE DON'T NEED ALL THAT STUFF HAPPENING OVER IN PUBLIC WORKS. SO, AND THEY'RE, THEY'VE BEEN A YEAR NOW AND THEY'RE, THEY'RE DOING FINE. SO LET'S TAKE THAT ROLE AND LET'S MOVE IT SOMEWHERE ELSE THAT GETS YOU TO YOUR NET ZERO. SO LONG AS THE PERSON THAT YOU'RE HIRING IS AT AN EQUAL LEVEL TO THE SALARY OF THE INDIVIDUAL WHO WE CURRENTLY HAVE. NO, NO ONE IN THAT POSITION. BUT THAT ALSO MAY NOT BE TRUE. SO YOU HAVE TO SAY, ARE WE TALKING ABOUT SALARY VALUES? ARE WE TALKING ABOUT PERSONNEL? SO IF YOU WANT NET ZERO ON PERSONNEL, IF WE HAVE OPEN POSITIONS THAT WE CAN MOVE TO OTHER PLACES WHERE WE THINK WITH GREAT JUSTIFICATION THAT THAT IS NEEDED, I WOULD BE ALL FOR THAT. IF, HOWEVER, WE ARE SAYING, UM, YOU KNOW, WE'RE, WE'RE GOING TO MOVE PEOPLE, I'M A LITTLE LEERY ABOUT THAT BEING FEASIBLE AND HAVING GOOD JOBS DONE. AND THEN IF WE'RE TALKING ABOUT THE FACT THAT, UM, WE ARE GONNA ADD NEW SALARY, WELL THAT'S A DIFFERENT CONVERSATION AS WELL. SO I THINK ALL THREE OF THOSE THINGS FOR ME PLAY INTO IT. SURE. I'D LIKE TO KEEP OUR PAYROLL THE SAME IF AT, IF AT ALL POSSIBLE, BUT PAYROLL AND PEOPLE ARE NOT IDENTICAL. SO I THINK YOU'RE MISREADING A LITTLE BIT OF WHAT I'M SAYING. SO I I'M CERTAINLY NOT SUGGESTING THAT WE JUST TAKE SOMEBODY OUT OF ONE DEPARTMENT AND THROW 'EM IN ANOTHER, UM, WHAT I'M SAYING IS, IS THAT WE'RE, WE'RE TRYING TO BE HONEST WITH OURSELVES ABOUT MAKING TOUGH DECISIONS PARTY YESTERDAY IS, IS WHAT ARE YOU WILLING TO SAY NO TO? AND WE HAVE TO BE WILLING TO SAY NO TO SOMETHING THAT WE'VE BEEN DOING, SOMETHING THAT WE'VE BEEN FUNDING AND THAT INCLUDES THE PEOPLE DOING IT. AND I DON'T TAKE THAT LIGHTLY. I'M NOT SUGGESTING THAT WE'RE GOING THAT WE SHOULD BE TARGETING LAYING PEOPLE OFF OR WHATNOT, BUT HAVING THE RIGHT PEOPLE IN THE RIGHT ROLES AND BEING WILLING TO CONSIDER THE POSSIBILITY THAT WE MIGHT HAVE AN AREA WHERE, YOU KNOW WHAT, IT'S TIME TO DE-EMPHASIZE THIS AND THERE MAY NOT BE A, UH, A FUNGIBLE ROLE TO DROP THAT PERSON INTO. I'M NOT SUGGESTING THAT AT ALL. OKAY. SO, SO I JUST, I JUST WANNA COME BACK AND SAY THAT WASN'T NECESSARILY AIMED TO YOU, BUT IT WAS AN EXPLANATION TO THE PEOPLE WHO ARE IN THE AUDIENCE OR WHO ARE LISTENING TO THE FACT THAT WE AREN'T TALKING ABOUT THE FUNGIBILITY OF HUMANS. THAT THAT CAN'T BE SOMETHING WE CONSIDER BECAUSE THEY ARE NOT FUNGIBLE. SO, SORRY IF I IMPLIED IT WAS ALL ABOUT YOU , ANNETTE, DO YOU HAVE THE VACANCY FACT, YOU KNOW, RATE AT THE MOMENT? I HAVE HEARD A NUMBER FROM RUSS, BUT I DON'T HAVE A REPORT, SO I DON'T KNOW THAT I CAN JUST RIGHT NOW OFF THE TOP OF MY HEAD GIVE ONE. BUT I KNOW THAT HE'S GOING THROUGH ALL THOSE CALCULATIONS AND FIGURING OUT THAT AMOUNT FOR US. UH, WHAT I DO KNOW IS THAT IT'S IMPROVED IN TERMS OF RETENTION AND FILLING POSITIONS. LIKE WE DON'T HAVE AS MANY VACANCIES AS WE'VE HAD IN THE PAST. UM, BUT I DON'T HAVE THE ACTUAL NUMBER RIGHT OFFHAND. OH, YOU STERLING. YEAH, I DID EMAIL RUSS ABOUT THIS. SO FOR FY 25, IT'S 16.8% IS THE TURNOVER. I I 16.8% FOR FY 25. OKAY. I HAVEN'T SEEN THAT ONE YET. SO, AND HOW DOES THAT COMPARE TO LAST YEAR? DO YOU KNOW? I BELIEVE, UH, ACTUALLY I HAVE THIS RIGHT HERE. SO FY 24 IS 20% FY 23. 23% FY 22. 22%. THAT IS GREAT. I HAVE TO SAY, HONESTLY, I WOULD BE THRILLED IF ANY DEPARTMENT ACTUALLY CAME TO THE TABLE AND SAID, WE DON'T NEED TO PERFORM THIS FUNCTION ANYMORE, WHATEVER THAT MIGHT BE. [02:25:05] I CAN THINK OF ONE. IT IS OUR ANNUAL RETREAT. I MEAN, IT WOULDN'T BE AN ANNUAL RETREAT WITHOUT ME MENTIONING THE FACT THAT, YOU KNOW, MOMENT OF ART . OH GOSH. AND WE ARE LOOKING AT HOW DO WE STREAMLINE OUR MEETINGS, KEEP US MORE FOCUSED ON OUR PRIORITIES, JUST SAYING WE CAN DO BETTER FOR OUR ARTISTS AND OUR COMMUNITY. WE CAN ALSO EXERCISE SELF DISCIPLINE, , SELF DISCIPLINE, . ALRIGHT. UM, I THINK WE HAVE A GOOD SENSE NOW OF, UM, THE BIG CATEGORY ASSUMPTIONS AND THINGS THAT YOU'VE ASKED US TO CONSIDER WHEN WE'RE PREPARING THE BASIC BUDGET TO BRING FORWARD TO YOU. UM, DO YOU WANT TO TRANSITION TO DISCUSSING FURTHER THE ECONOMY SLASH ECONOMIC DEVELOPMENT PRIORITY? AND AGAIN, LIKE I MENTIONED, I ASKED TONY TO COME BACK IN 'CAUSE HE HAS A BACKGROUND IN THIS AND HIS PRIOR LIFE WITH OTHER CITIES AND, UM, I THOUGHT HE COULD HAVE SOME GOOD INSIGHTS FOR US, UM, BEYOND WHAT WE DO IN OUR TOURISM DEPARTMENT. UM, SO I'LL JUST TURN IT BACK OVER TO YOU OR WHO, HOWEVER YOU WANT TO DO THIS PORTION. WELL, SOMEBODY'S GONNA HAVE TO GO UP, UP TO THE BOARD AND DO YOU WANT ME TO MOVE IT CLOSER THEIR, WE CAN MOVE IT CLOSER TO TONY AND, AND BARBARA, DO YOU WANT TO DO SIMILAR APPROACH THAT YOU DID AT THE END OF THE DAY YESTERDAY ON THE MOBILITY, I THINK IT WAS MOBILITY, BUT, UM, THIS SERIES OF QUESTIONS THAT YOU WOULD WANT TO KNOW ABOUT? UM, OR DO YOU WANT TO TALK ABOUT, UM, WHAT THAT ACTUALLY MEANS TO YOU FIRST? I FEEL LIKE YOU DID A LITTLE BIT OF THAT YESTERDAY, BUT NO, I THINK IF YOU TURNED IT AROUND. YEAH. I JUST WANNA TAKE ONE MORE PICTURE BEFORE WE ERASE IT. I'VE TAKEN A COUPLE, BUT I WANNA MAKE SURE. YES. OH, I GET A LITTLE COMPULSIVE . I GOT IT. LIKE, AND I GOT WHICH ONE. OKAY. AND I DID TOO, BUT WE'RE VERY BLOW TECH AT THE MOMENT. ALWAYS GOOD. OKAY. WE GOOD? ALRIGHT. AND THEN I, OKAY. YEP. SO I THINK, I THINK THE HEADS ARE GONNA FALL OUT, RIGHT? WE'LL JUST ROLL IT AROUND LIKE HE DID. BUT I ALSO THINK THE QUESTIONS HE WROTE HERE ARE ABOUT ECONOMIC DEVELOPMENT SCHOOL NEEDS. DO YOU WANT TO LEAVE THESE UP? SO I THINK THAT SOME OF THOSE OKAY. WAIT, SO BEFORE, BEFORE YOU ERASE THIS, SO QUITE A FEW OF THE QUESTIONS HE WROTE DOWN, HE ERASE IN THE BACK. OKAY. SO SOME OF THE QUESTIONS THAT HE WROTE THERE ARE ABOUT ECONOMIC DEVELOPMENT. RIGHT? RIGHT. ON THIS SIDE. ON THIS SIDE. AND SO THAT'S A PLACE WE COULD START IF WE WANTED TO. IT WAS, I WAS SAYING, SO WE CAN START OFF, YEAH, I'LL PUT THIS ON THIS SIDE. OKAY. OKAY. SO DO WE WANT TO ERASE PART OF THIS QUESTIONS? SO I GUESS, WHICH OF THESE QUESTIONS DO WE WANT TO KEEP UP HERE AS BEING ECONOMIC DEVELOPMENT RELATED? RIGHT. 'CAUSE THEY ACTUALLY WERE, THEY WERE ACTUALLY DONE FOR HOUSING MM-HMM . THEY WERE. BUT WHAT'S INTERESTING ABOUT THAT IS THEY WERE DONE FOR HOUSING, BUT THEY ALL WORK FOR THE SCENARIOS MM-HMM . RIGHT. AND THOSE SCENARIOS, EACH ONE IS GOING TO HAVE AN ECONOMIC AS WELL, BECAUSE OUR DECISIONS ARE GONNA BE DIFFERENT DEPENDING ON WHICH DIRECTION YOU CHOOSE. WELL, I, I, I THINK OKAY, TO ERASE THIS, LET'S DEFINE WHAT WE MEAN FIRST. YEAH, THAT SOUNDS GREAT. I WOULD ERASE THE RIGHT SIDE. THIS SIDE. YEAH. OKAY. AND THAT'S THE QUESTION. THOSE ARE, WE COULD, WE'VE CAPTURED THEM RIGHT? WE'VE TAKEN PICTURES AND NOTED GOWNS ABOUT ECONOMIC DEVELOPMENT VERSUS SPECIFICALLY HOUSING. OKAY. ACTUALLY THE RIGHT SIDE, THIS SIDE, THE LEFT SIDE, THE RIGHT SIDE IS WHERE WE, BECAUSE I THINK THAT WE KNOW THOSE, THOSE THE MASTER TAKE A NOTE. YES. BUT WE COULD KEEP REFERENCING THE QUESTIONS IN HERE. RIGHT? OH, SO YOU'RE TALKING ABOUT THE LEFT SIDE. SO WE'RE TALKING ABOUT THE COMMUNITY HOUSING ECONOMY. ONE MORE. I RIGHT. LEFT CHALLENGE. SO I YEAH, I AM. WELL, AND WHILE HE'S GETTING THAT READY, IT SEEMED TO ME THIS MORNING THAT GIVEN THE DATA THAT STERLING PRESENTED THAT MAY HAVE TRIGGERED SOME THOUGHTS OR QUESTIONS [02:30:01] IN THE COUNCIL'S MIND ABOUT KNOWING THE DATA THAT WE KNOW NOW AND THE DEMOGRAPHICS WE HEARD YESTERDAY, HOW DOES THAT TRANSLATE INTO WHAT YOU'RE THINKING AROUND SOME KIND OF ECONOMIC DEVELOPMENT PRIORITY? OKAY. OKAY. TONY, DO YOU WANT THIS MIC? UM, DO I NEED THE MIC? YEAH. FOR I GUESS FOR RECORDING PURPOSES. YEAH. BETTER. OKAY. GOTCHA. OKAY. SO DID WE SAY WE'RE STARTING OFF WITH DEFINING WHAT WE MEAN. OKAY. DO YOU WANNA START WITH THIS QUESTION OR, WELL, I GUESS FIRST JUST GOING AHEAD AND BUILDING OFF OF WHAT DO WE, WHEN WE'RE THINKING ABOUT HOW WE WANT TO IMPACT OUR ECONOMY AND WHAT TYPES OF THINGS WE SHOULD BE THINKING ABOUT THE ECONOMY, WHAT IMMEDIATELY COMES TO, TO YOUR MIND AS THE THINGS YOU NEED TO BE THINKING ABOUT? SO BEFORE WE GET INTO IT FROM A DEVELOPMENT STANDPOINT, WHAT, WHAT MATTERS TO YOU AS FAR AS THE ECONOMY AS A WHOLE GOES, WE'VE HEARD THE THINGS AS IT RELATES TO TOURISM, RIGHT? AND SALES, RETAIL, ET CETERA. SO, AND WE KNOW THAT TOURISM DRIVES OUR ECONOMY. SO THE FIRST THING I WOULD ASK IS, DIVERSITY CAME UP YESTERDAY AS A, AS SOMETHING WE NEED TO THINK ABOUT HOW IMPORTANT IS THAT TO THIS COMMUNITY? ECONOMIC, ECONOMIC DIVERSITY, NOT JUST COMPLETELY RELYING ON TOURISM. I THINK IT'S IMPORTANT THAT, YEAH, IT'S THE FIRST QUESTION. YEAH. . RIGHT? AND IT'S AN INTERESTING QUESTION. 'CAUSE YOU KNOW, GROWING UP, YOU KNOW, SPENDING 30 YEARS IN HOUSTON, IT'S ALL ENERGY, RIGHT? BUT THE DECISION WAS MADE AT A POINT ABOUT 20 YEARS AGO THAT THEY WERE TOO RELIANT ON ENERGY AND THE MOVEMENT. SO THERE WERE INTENTIONAL DECISIONS TO MAKE INCREMENTAL CHANGES INTO VERY SPECIFIC MARKETS. AND SO IT WAS, GOING BACK TO YOUR POINT, HOW REALISTIC IS IT? YOU KNOW, IF WE WANT TO LOOK AT DIVERSIFYING THE ECONOMY, DIVERSIFICATION MAY MEAN INSTEAD OF A HUNDRED ZERO, IT MAY START OUT AS 90 10, RIGHT? AS A GOAL. SO LIKE YOU SAID, IT NEEDS TO BE REALISTIC. WE'RE NOT GONNA BE A 50 50 SPLIT HERE. SO, YOU KNOW, SO THE FIRST QUESTION IS, DO WE THINK IT'S IMPORTANT TO START CONSIDERING DIVERSIFICATION? AND THEN WE CAN GET INTO THE WHAT AND HOW. UM, I'M CURIOUS TO KNOW, YOU KNOW, WE'VE, WE'VE HAD STAFF MEMBERS IN IN OUR CITY IN THE PAST WHO HAVE BEEN IN CHARGE OF THINKING ABOUT THIS AND DIDN'T, I DON'T KNOW WHAT REALLY RESULTED OR WHAT WE TRIED. I, YOU KNOW, I THINK A LOT OF US ARE WONDERING WHAT CAN WE DO BECAUSE OF ALL THE FACTORS WE ALL KNOW ABOUT LAND COST AND LABOR SHORTAGE AND BLAH, BLAH, BLAH. SO I I, I ENDED UP MOVING INTO THE SPACE OF, IT'S MORE IMPORTANT TO THINK ABOUT THE GENERIC TOOLS RATHER THAN THE SPECIFIC PICKING AN ECONOMIC SECTOR. SO LIKE BROADBAND VERSUS HEALTHCARE, RIGHT? SOMETHING IT'S FROM, FROM THE PROFESSIONAL POINT OF VIEW, I LOOK AT IT FROM TWO PERSPECTIVES. YOU KNOW, ONE, IT'S, YOU KNOW WHAT, LIKE YOU SAID, YOU KNOW, THERE IS NO CRYSTAL BALL. THERE ARE CERTAIN THINGS YOU'RE GOING TO BE MORE NATURAL TO THAN OTHERS. YOU KNOW, FOR EXAMPLE, IF YOU TALK ABOUT ENTREPRENEURSHIP, YOU KNOW, YOU PROBABLY BLEED VERY WELL INTO ENTREPRENEURSHIP. THERE'S AN OPTION THAT COULD WORK THERE. AGAIN, I'VE BEEN HERE A MONTH AND A HALF, SO I GET TO MAKE THIS UP. BUT, SO FROM THAT PERSPECTIVE, IT'S, IT'S LOOKING AT WHAT MARKETS YOU COULD POTENTIALLY GROW INTO, BUT UNDERSTANDING THAT ALL OF THAT'S A GUESS AND IT'S A PIVOT. YOU KNOW, BEING ABLE TO UNDERSTAND THAT IF SOMETHING COMES ALONG, YOU TAKE ADVANTAGE OF IT. THE OTHER SIDE TO THAT COIN IS HOW DO WE BUILD RESILIENCE INTO OUR TOURISM ECONOMY SO THAT YOU'RE LOOKING AT BOTH SIDES. SO YES, YOU WANT TO BE DIVERSE, BUT AT THE SAME TIME, YOU KNOW, YOU'RE, YOU KNOW, WHAT IS OUR BREAD AND BUTTER IS TOURISM, HOW DO WE MAKE SURE IT'S RESILIENT WHEN THINGS GO SOUTH ELSEWHERE? IF THAT MAKES SENSE. BUT IT, IT, IT DOES. AND WHEN I THINK ABOUT RESILIENCY, THAT TO ME, NO, NOT RESILIENCY. THE WORD YOU USED WAS, UM, ENTREPRENEURSHIP. YEAH, LOVE IT. I WOULD AGREE WITH YOU THAT I THINK THAT THERE'S SOMETHING INNATE [02:35:01] ABOUT SEDONA PEOPLE THAT COULD BE CREATIVE, ENTREPRENEURIAL TYPES, AND AGAIN, ENTREPRENEURSHIP, BROADBAND ARE THE TOOLS RATHER THAN THE PARTICULAR SECTORS OF WHAT RIGHT. THE ENTREPRENEURS WANT TO DO IS UP TO THEM. BUT IF WE ENCOURAGE AND NURTURE THE SKILLS OF ENTREPRENEURISM. YEP. YEAH. SO FROM THAT PERSPECTIVE, IN MY WORLD, WE CALL THAT ECONOMIC INFRASTRUCTURE, RIGHT? YOU'RE PUTTING THE TOOLS IN PLACE, RIGHT? WHETHER IT'S YOUR, WHETHER IT IN, IN TEXAS WE GET INCENTIVES TO DO ALL THIS STUFF. WE DON'T GET THAT PRIVILEGE IN ARIZONA, BUT YOU DO HAVE THE OPPORTUNITY THROUGH YOUR REGULATIONS. WE TALKED ABOUT YESTERDAY, WHAT THINGS TRIP US OVER OURSELVES, YOU KNOW, SAME TYPE OF THING. WE CAN THINK ABOUT IF WE WANT TO BUILD ENTREPRENEURSHIP, WHAT TYPES OF PROGRAMS WE PUT IN PLACE, BUILDING BROADBAND, YOU KNOW, THE CAPITAL PROJECTS. THOSE ARE THE TYPES OF THINGS YOU WANT TO BE THINKING ABOUT IF YOU WANNA SET YOURSELF UP FOR THAT SIDE. THE OTHER NICE THING ABOUT ENTREPRENEURSHIP IS ENTREPRENEURS TEND TO, UM, TEND TO LOOK INTO AREAS WHERE THEY WANT TO LIVE AND FIND ATTRACTIVE VERSUS THE LOCATION, LOCATION, LOCATION CONCEPT THAT YOU FIND IN INDUSTRY AND SOME OTHER NETWORKS. SO IT MAKES IT MORE FLUID AND MORE MARKETABLE TO A PLACE HERE, I'M NOT SAYING DIVE INTO ENTREPRENEURSHIP, I'M SAYING IT'S A NATURAL FIT. SO, BUT BACK TO PETE, TO WHAT YOU'RE SAYING, IT'S, UM, YOU'RE ABSOLUTELY RIGHT. YOU KNOW, BUILDING YOUR ECONOMIC INFRASTRUCTURE IS KEY. SO, SO FROM THAT PERSPECTIVE, DIVERSITY SEEMS TO BE, I SEEM TO SEE NODDING OF HEADS THAT DIVERSITY IS A GOOD IDEA. WE NEED TO BE THINKING ABOUT IT FROM THAT PERSPECTIVE. THE QUESTION IS, WHAT DOES THAT LOOK LIKE? RIGHT? COUNCIL MEMBER DUNN, SO YOU MOVE OH YES. SO SORRY, I WAS BEING SELFISH HERE. I TALKED SO LOUD. I UNDERSTAND. UM, I THINK WHEN WE TALK ABOUT RESILIENCE IN TOURISM, I THINK ONE OF THE THINGS WE HAVE TO DO IS LOOK AT THE SECTORS OF TOURISM BECAUSE WE ARE OUTDOOR TOURISM, WE HAVE WELLNESS, TOURISM, YOU KNOW, WHAT ARE, WHAT ARE THE REASONS WHY PEOPLE COME TO SEDONA? UM, YOU KNOW, WE HAVE SPIRITUAL TOUR TOURISM AND MAYBE WE NEED TO ALSO UNDERSTAND WHAT'S HAPPENING WORLDWIDE IN THOSE VARIOUS SECTORS OF TOURISM TO SEE WHETHER OR NOT, FOR INSTANCE, IF PEOPLE ARE TRAVELING TO INDIA AND ALL THESE PLACES FOR SPIRITUAL, COULD WE GET SOME OF THOSE TO COME TO SEDONA? AND WHAT WOULD IT TAKE FOR THAT? AND THAT COULD REQUIRE DIFFERENCES IN, YOU KNOW, OUR INFRASTRUCTURE AND, YOU KNOW, WHAT, HOW WE WORK AND MAYBE EVEN HOW OUR BUSINESSES THINK ABOUT THEMSELVES WHO ARE NOT CURRENTLY IN THE SPIRITUAL BUSINESS. AND SO IT'S JUST LIKE WHAT'S HAPPENING IN THE REST OF THE WORLD? AND I UNDERSTAND WE HAVE A PROBLEM SINCE EVEN NON VISA COUNTRIES, WHICH IS THE UK FOR INSTANCE, ARE GOING TO BE SUBJECT TO HUGE DATA PRIVACY, UH, CONTRARY TO THEIR LAWS, WHICH ARE VERY STRICT. SO WHO CAN WE ATTRACT AND HOW CAN WE ATTRACT THEM? AND DO WE UNDERSTAND? SO WE AREN'T DEPENDENT JUST ON THE RED ROCKS FOR OUTDOOR TOURISM, BUT WE CAN ALSO USE THEM TO LURE PEOPLE HERE FOR OTHER FORMS OF TOURISM. SO LAST WEEK I DID A RIBBON CUTTING FOR CLUB PILATES IN THE HILLSIDE. THEY OCCUPY THE SPACE THAT JUDY ARIZONA USED TO HAVE, WHICH WAS A WOMEN'S CLOTHING. WELL, IT TURNS OUT THAT NEXT TO CLUB PILATES IS ANOTHER, AND I'M TRYING TO THINK OF THE NAME OF, OF THE, UH, ESTABLISHMENT, BUT IS ANOTHER WELLNESS RETAIL STORE. AND THEY WERE SAYING THAT IN THE, IN THAT LEVEL, IT'S THE SECOND LEVEL IN THE HILLSIDE. SO DOWN FROM THE HUDSON UP FROM THE, THAT IS BECOMING A WELLNESS AREA FOR RETAIL RETAILERS, WHICH I DIDN'T KNOW. UH, I HADN'T, I'VE BEEN ON THE TOP FLOOR AND I'VE BEEN ON THE BOTTOM FLOOR, BUT I HADN'T BEEN IN THE MIDDLE FLOOR FOR A WHILE BECAUSE, UH, A LOT OF THOSE SHOPS BECAME VACANT. NOW THEY'RE BEING, UH, LEASED INTO THIS WELLNESS SPACE SPACES. SO THAT WAS VERY INTERESTING FOR, FOR ME. AND IT SEEMS LIKE, UM, PEOPLE ARE GRAVITATING THERE. UH, SO I, I I I THINK YOU'RE ABSOLUTELY RIGHT. AND, AND, AND YESTERDAY, THAT'S WHAT I WAS ALSO SAYING. MAYBE WE NEED ANDREW HERE, UH, HAVE, HAVE WE [02:40:01] MAXED OUT IN TOURISM OR ARE THERE AREAS THAT COULD STILL BE DEVELOPED THAT WOULD GIVE US A BROADER BRUSH OF, OF, UM, ESTABLISHMENTS THAT ARE, WOULD DRAW PEOPLE, RIGHT. TYPES OF TOURISM. EXACTLY. YEAH. SO WE WOULD LOOK, WE WOULD NORMALLY LOOK AT THAT, AND THIS IS, I LOVE THIS, THIS, NORMALLY WE WOULD LOOK AT THAT AS OUR PRIMARY SECTOR AND THEN WHAT ARE OUR SECONDARY SECTORS, RIGHT? OF THE TOURISM INDUSTRY, WHAT TYPES OF THINGS, WE KNOW WHAT DRIVES US, IT'S THE RED ROCKS. BUT AT THE END OF THE DAY, BUT ALSO WE ARE SEEING THESE OTHER MARKETS THAT ARE EITHER EMERGING OR HAVE BEEN HERE. WHAT IS THE STRENGTH WITHIN THOSE MARKETS? IS THERE OPPORTUNITY, UM, TO BUILD ON THOSE AS WELL? THE OTHER SIDE TO THIS THAT, THAT I WANTED TO ASK IS, AND I THINK I KNOW THE ANSWER, I JUST WANNA PUT IT OUT THERE. UM, DO YOU PROMOTE SMALL BUSINESS OR ARE YOU LOOKING TO BRING IN NATIONAL BRAND THAT CAN DO THE SAME TYPE OF THING? SO, YOU KNOW, IT'S DOUBLE EDGED. SMALL BUSINESS TENDS TO, TENDS TO PRE TO CREATE MORE OPPORTUNITY. IT CIRCULATES MONEY WITHIN THE ECONOMY. IT TENDS TO STRENGTHEN THE ECONOMY AND THE SENSE OF COMMUNITY TENDS TO BUILD OFF OF SMALL BUSINESS. THE OTHER SIDE IS NATIONAL BRAND CAN LAST THROUGH, UM, THE DOWN TIMES A LITTLE BIT BETTER THAN THE SMALL BUSINESSES CAN. SO, BUT SEDONA SEEMS TO HAVE HISTORICALLY BEEN SMALL BUSINESS CENTRIC. IS THAT A FOCUS YOU WANT TO CONTINUE? YES, MA'AM. WELL, YOU RAISED A REALLY GOOD POINT BECAUSE I HAVE A FRIEND WHO, UH, DOES PILATES AS AN EXAMPLE. I SAID, OH, DO YOU KNOW THAT THERE'S A NEW PILATES PLACE IN TOWN? AND SHE SAID, OH YES, CLUB PILATES, A NATIONAL BRAND. I PREFER TO GO TO THE SAFEWAY SHOPPING CENTER WHERE THERE IS A LOCAL PILATES SMALL BUSINESS. UH, BECAUSE I WOULD RATHER SUPPORT, THIS IS JUST ONE PERSON, OR I WOULD RATHER SUPPORT A LOCAL BUSINESS RATHER THAN A NATIONAL BRAND. SO YOU'RE RIGHT ON POINT WITH THAT. JUST IN MY EXAMPLE. SO BY THE WAY, THE, THE WOMAN WHO OWNS THE, THE BUSINESS IN SAFEWAY, SHE OWNS FOUR OTHER ONES. AND YEAH, SHE'S LOCAL, BUT NOT REALLY ALL THAT LOCAL. BUT I, I THINK IT HAS TO DO WITH, UM, OUR IDENTITY. DO WE WANT TO SEE OUR, OUR SEDONA IDENTITY TO BE ABOUT, WE SUPPORT SMALL LOCAL BUSINESSES. WE SUPPORT PEOPLE WHO COME HERE WHO ARE TRYING TO BE ENTREPRENEUR ENTREPRENEURS IN AND OF THEMSELVES, WHETHER I DON'T CARE WHAT SECTOR THEY'RE IN, RIGHT? SO VERSUS WE'RE TRYING TO ATTRACT SOME BIG LIGHT MANUFACTURER TO COME OUT HERE AND, AND DO THE DELLS OR WHERE WE WANT, YOU KNOW, A, UM, WE WANT A CHIP PLANT. SO THE ANSWER IS NO, BY THE WAY, THE ANSWER IS NO. UM, BUT YOU KNOW, IT'S ABOUT WHETHER OR NOT WE WANT THAT VERSUS DO YOU WANT, UM, I'M GONNA SAY THEIR NAME WRONG. SO, YOU KNOW, ANDREW'S BEEN WORKING WITH THEM A LOT, BUT DO WE WANT, UH, LIKE CODE EPOXY TO COME OUT HERE AND HAVE A, A ANCHOR STORE, YOU KNOW, UP IN UPTOWN OR WHATEVER. IF WE'RE TRYING TO DRAW PEOPLE INTO UPTOWN, THAT CAN ACTUALLY BE A DRAW. THEY KNOW THE NAME. SO THE QUESTION IS, DO WE WANT TO BE IDENTIFIED, SELF IDENTIFIED AS WE'RE SMALL BUSINESS VERSUS WE'RE A HYBRID AND WE'D LIKE ONE BIG BRAND NAME TO COME INTO TOWN THAT PEOPLE RECOGNIZE, NOT TRADER JOE'S. AND UM, YOU KNOW, I, I THINK THAT'S JUST, JUST PART OF WHO WE THINK WE ARE. SURE, SURE. SO MELISSA, YOU'RE SPEAKING MY LOVE LANGUAGE RIGHT NOW. OKAY. BECAUSE I'VE BEEN TALKING TO THE BUSINESS COMMUNITY ABOUT BRINGING IN SOME OF THOSE NATIONAL BRANDS, NOT TO OVERRUN THE TOWN, BUT LOOKING AT UPTOWN AS A REDEVELOPMENT OPPORTUNITY. AND WHEN YOU LOOK AT PARK CITY, IT'S A GREAT EXAMPLE WHERE THEY HAVE ESTABLISHED A BUSINESS DISTRICT ON THEIR HISTORIC MAIN STREET, AND THEY'VE BROUGHT IN CO EPOXY AND COOL, AND PATAGONIA AND LULULEMON, ET CETERA. BUT THERE'S A FIXED NUMBER OF THOSE NATIONAL BRANDS AND THEY'RE SPREAD OUT, UP AND DOWN MAIN STREET IN PARK CITY. AND THERE'S A TON OF VITALITY THERE. UM, AND IT WOULD ACTUALLY PROBABLY CAUSE [02:45:01] LOCALS TO WANT TO SPEND MORE TIME IN UPTOWN. SO, UH, I COULD EASILY GO DOWN THIS RABBIT HOLE FOR LIKE ANOTHER HALF AN HOUR, BUT, UM, IT'S A, LIKE THE IDEA, BUT IT'S A SIGNIFICANT ECONOMIC DEVELOPMENT OPPORTUNITY. AND YEAH, LIKE I SAID, I'VE BEEN TALKING TO FOLKS IN THE BUSINESS COMMUNITY THAT PROBABLY IN EARLY 2026 START MEETING AND TALKING ABOUT WHAT WOULD IT TAKE TO DO THAT. BUT IT ALSO BRINGS UP THE POINT OF HOW MUCH OF THIS SHOULD BE COUNCIL DRIVEN VERSUS CHAMBER AND BUSINESS LANDLORD DRIVEN. I MEAN, WE CAN ONLY GO SO FAR WITH THIS. UM, IN TERMS OF ADDRESSING SOME OF THE RESILIENCE STUFF. I MEAN, PEOPLE, BUSINESS OWNERS NEEDED TO TAKE A GOOD HARD LOOK IN THE MIRROR AND ASK THEMSELVES, AM I OFFERING PRODUCTS THAT PEOPLE STILL WANT IN 2025? AND THE ANSWER IS NO. IN A LOT OF INSTANCES, WE ALL KNOW THE TREND IS AWAY FROM PEOPLE BUYING STUFF AND WANTING EXPERIENCES AND SO FORTH. AND THE HOTELS ARE FINALLY STARTING TO CATCH ONTO THAT A LITTLE BIT, RIGHT? SO SOME OF THEM ARE STARTING TO OFFER WELLNESS SPACE ON PROPERTY AND THINGS LIKE THAT. BUT I MEAN, CAN WE ENCOURAGE IT? YES. SHOULD WE, SHOULD WE? OR COULD WE DRIVE IT? I DON'T KNOW. THERE YOU GO. UM, I DON'T LIKE MICROPHONES. UM, WE NEED TO BE REALLY CAUTIOUS ABOUT LETTING THE NATIONAL BRANDS IN THE DOOR. I MEAN, ONCE HE LET THE BARBARIANS IN THE GATE, THERE'S OFTEN NO TURNING 'EM BACK AND HAVING REPRESENTED A NUMBER OF 'EM. UH, THEY COME IN AND THEY LIKE TO SQUEEZE OUT ALL THE LITTLE GUYS AND YOU KNOW, THEY START WITH THIS AND THEN IT GROWS AND THEN IT GROWS AND THEN THEY, YOU KNOW, THEY KILL COMPETITION. SO, UH, IF THEY CAN BE SPREAD OUT AND IF THEY CAN BE, YOU KNOW, LIMITED IN NUMBER, MAYBE, UH, BUT I DON'T WANT, YOU KNOW, I'M NOT GONNA NAME NAMES 'CAUSE SOME OF 'EM ARE PROBABLY CLIENTS IN MY FIRM, BUT THEY'RE ANY NUMBER OF BUSINESSES THAT I WOULD NOT WANT SETTING FOOT IN SEDONA. 'CAUSE I'VE SEEN WHAT THEY DO TO THE AREAS THEY MOVE INTO. SO I WANNA BE REAL CAREFUL ABOUT THAT. WELL, WE'RE NOT TALKING ABOUT WALMART, OBVIOUSLY, THAT FAMOUSLY CROWDS OUT EVERYBODY AND EVERYTHING, RIGHT? BUT WHAT I SEE IN PARK CITY IS A VERY HIGH VITALITY ENVIRONMENT. AND WHEN YOU LOOK AT, I MEAN, IT'S A MINORITY OF THE STOREFRONTS THAT ARE ALLOWED TO BE THESE NATIONAL BRANDS. I DON'T REMEMBER THE EXACT NUMBERS, BUT IT IS A STRONG MINORITY IN WHAT YOU HAVE IS A WHOLE LOT OF, YOU HAVE GALLERIES THAT LOOK LIKE WHAT YOU SEE AT TILLOCK. YOU SEE LOTS OF OTHER LOCALLY OWNED AND CURATED RETAIL AND RESTAURANTS. THERE ARE NO NATIONALLY BRANDED RESTAURANTS THAT I CAN THINK OF. AND THERE'S AS MUCH RETAIL ON THAT STRIP ON PARK CITY MAIN STREET AS MUCH OR MORE THAN WHAT THERE IS IN UPTOWN. SO I, I DON'T THINK I WOULD BE FEARFUL OF THE BARBARIANS, UH, OVERRUNNING THE PLACE. AND WHEN YOU THINK ABOUT THE NUMBERS OF PEOPLE THAT DRIVE THROUGH UPTOWN ON THEIR WAY TO SOMEWHERE ELSE, THAT WHEN THEY START SEEING A FEW OF THOSE NATIONAL BRANDS AND GO, OH, WHY DON'T WE STOP? I DIDN'T KNOW THERE WAS A LULULEMON AND MAYBE I'M GONNA GO BUY SOMETHING AND MAYBE I'M GONNA HAVE LUNCH INSTEAD OF JUST DRIVING ON THROUGH THE FLAG IN THE GRAND CANYON. HOW DOES PARK CITY, WHAT'S THAT? HOW DOES PARK CITY BUY THAT? THEY HAVE A BUSINESS DISTRICT THAT THEY'VE ESTABLISHED THE RULES ON. SO, I MEAN, WE HAVE THOSE OFF. WHAT WAS THE QUESTION? QUITE? SO THE EXAMPLE THAT BRIAN'S GIVING IS THIS DISTRICT WHERE THEY HAVE A GOOD MIX OF LOCAL STORES AND NATIONAL BRANDS. AND MY CONCERN IS, YOU KNOW, THE NATIONAL BRANDS START MOVING IN PRETTY, THEY PUSH OUT EVERYTHING ELSE. DO WE HAVE REPAIRS ON LAW? CAN WE BUSINESS DISTRICT, WHATEVER, WHATEVER YOU'RE TALKING ABOUT, CAN WE DISCRIMINATE OUR BUSINESS ? UH, NO. SO GENERALLY WE'RE NOT GONNA BE ABLE TO DISCRIMINATE AGAINST, UH, BUSINESSES BASED ON WHETHER THEY'RE OWNED NATIONALLY OR LOCALLY. BUT THAT DOESN'T MEAN THE BUSINESS OWNERS CAN'T ESTABLISH THEIR OWN ASSOCIATION AND COME TO SOME INFORMAL, PERHAPS ON ENFORCEABLE AGREEMENTS. RIGHT? I I I MEAN OBVIOUSLY WE'RE NOT GONNA SOLVE WHETHER WE SHOULD REIMAGINE UPTOWN RIGHT NOW, UH, AND, AND WOULDN'T SUGGEST SO, BUT, UM, TALK TO SOME OF THE BUSINESS OWNERS, TALK TO SOME OF THE LAND OWNER LANDLORDS AND FIND OUT HOW MUCH THEY WOULD LIKE TO HAVE STABILITY OF TENANTS AND THE ABILITY TO GET INCREASING RENTS YEAR OVER YEAR. AND THEN THEY'D BE ABLE TO REINVEST IN THEIR PROPERTIES [02:50:01] AND THAT SORT OF THING. SO THIS CONVERSATION COULD GO ON FOR HOURS. AND I LOVE IT. IT'S, IT'S REALLY INTERESTING. I'M NOT SURE OF THE VALUE THOUGH, BECAUSE I DON'T KNOW HOW PLACES HAVE RESTRICTED IT. I DON'T, I HAVE NOT EVER HEARD FROM KURT THAT WE COULD DO THAT. YOU TALK ABOUT NOT LETTING THE BARBARIANS IN THE GATE, BUT I DON'T KNOW WHAT WE CAN DO ABOUT THAT. THEY COME, THEY COME, RIGHT? BUT THEN, YOU KNOW, YOU HAVE TO PLAY THAT OFF AGAINST THE PUSH IS DRIVING TOURISM HIGHER, GETTING THE HIGHER DOLLAR PEOPLE TO COME. WHEN ENOUGH OF 'EM COME, THE BARBARIAN IS GONNA WANT TO COME IN THE GATE, IF YOU CALL IT THE BARBARIAN. I, I DON'T THINK SO. I THINK THAT'S VERY UNFORTUNATE LANGUAGE THAT WE SHOULD BE USING AGAINST NATIONAL CHAIN PEOPLE. I THINK THERE'S A GREAT CONVERSATION ABOUT THE VALUE OF LOCAL BUSINESSES AS WELL. UM, BUT MAN, I THINK OUR TOOL SET IS PRETTY LIMITED. I THINK SOME OF THE THINGS THAT WE'RE DOING ARE GOING TO ENCOURAGE THAT SOMEDAY IN THE FUTURE BECAUSE OF THE PUSH THAT WE'RE TRYING TO DO. AND BOY, IT'S REALLY MESSY. CAN I JUST SAY THAT? A NATIONAL, YEAH. OKAY. SO THEY'RE ALREADY HERE. I THINK I WAS NEXT. THEY'RE ALREADY HERE. OKAY. I THINK I WAS NEXT. YOU'RE NEXT, MADDIE. I'M WAITING. OKAY. SO THIS IS A, UM, THIS IS A WHOLESALE CHANGE THAT'S ON THE TABLE BEING DISCUSSED AT THE MOMENT. I MEAN, WE ARE, WE ARE STILL A SMALL TOWN, A LOT OF VISITORS, BUT WHAT WE'RE TALKING ABOUT IS IF, IF THIS BECOMES A PRIORITY, ECONOMIC DEVELOPMENT AND A MOVE WITH THAT AND TRYING TO HAVE SOME CONTROL OVER THAT ONE. ARE WE WE'RE TALKING ABOUT CHANGING POTENTIALLY THE WHOLE FLAVOR CHARACTER OF SEDONA. YOU'RE TALKING ABOUT TRYING TO CONTROL THAT, WHICH I'M NOT SURE THAT WE HAVE THE TOOLS TO DO. SO ONE, YOU HAVE TO DEFINE IT, WHICH, YOU KNOW, WE FACE CHALLENGES DEFINING THINGS ALL THE TIME, RIGHT? AND IT, AND DEFINE IT, CONTROL IT. HOW WOULD WE UN WOULD THAT BE UNDERMINING THE CHAMBER AND WHAT THE CHAMBER'S ROLE SHOULD BE? UM, AND I JUST, I JUST DON'T THINK THAT THIS IS A HEALTHY ROAD TO GO DOWN IN TERMS OF DISCUSSING IT IN TERMS OF WHAT ARE OUR BUDGET PRIORITIES THAT WE'RE DISCUSSING AND ARE WE REALLY TALKING ABOUT CHANGING THE FACE OF RETAIL IN SEDONA AS A BUDGET PRIORITY FOR THE CITY WITH PUBLIC MONEY? I, I, I, I JUST, TO ME IT'S NOT THE RIGHT TRACK. CAN I JUST SAY I AGREE WITH YOU THAT, UH, AND I DID SAY BEFORE, YOU KNOW, LIKE I DON'T KNOW THAT IT'S OUR ROLE. WE CAN ENCOURAGE THINGS, BUT THE CHAMBER AND THE LOCAL BUSINESS COMMUNITY NEEDS TO DECIDE WHAT'S IMPORTANT TO THEM. IF I MAY, I WAS GOING TO, UH, SUGGEST IF THIS IS A TOP, IF THIS ECONOMY OR ECONOMIC DEVELOPMENT, WHATEVER WE'RE GONNA CALL IT, IS A, IS AN INTEREST OR A PRIORITY, UM, I THINK IT'S AN OPPORTUNITY FOR US TO HAVE A DIFFERENT CONVERSATION OR PARTNERSHIP WITH THE CHAMBER, HAVE WORK WITH THEM TO HELP US UNDERSTAND WHAT THOSE LOCAL BUSINESSES WANT AND NEED FROM US OR WHAT'S GETTING IN THE WAY. AND GET SOME PRACTICAL IDEAS OF WHERE IS IT THAT THE CITY CAN DO SOMETHING THAT WOULD, UM, BE SUPPORTIVE OF OUR LOCAL BUSINESSES AND HELP THEM. UM, YOU KNOW, THAT'S SOMETHING DOABLE IN THE NEXT YEAR. UM, DOES IT GIVE US MORE INFORMATION AND INSIGHT ON THESE BIGGER TOPICS? UM, BUT I WOULD THROW THAT OUT THERE AS A STARTING POINT AS FAR AS, UM, I THINK WE NEED BETTER UNDERSTANDING OF WHAT, WHAT THESE FOLKS NEED AND, AND WANT OR, UM, HOW THE CITY CAN SUPPORT THEM TO BE SUCCESSFUL, ESPECIALLY WHEN WE SAW THAT RETAIL SALES DATA THIS MORNING AND HOW, UM, THEY'RE IN A DIFFERENT BOAT REALLY THAN THE LODGING INDUSTRY, SO TO SPEAK. AND, AND A LOT OF THOSE FOLKS LIVE IN THE AREA, UM, AND WE WANNA KEEP HIM HERE. ANYWAY, THAT'S JUST A THOUGHT. I DON'T KNOW IF I, I ASKED ANDREW IF HE WANTED TO COME BACK INTO PARTICIPATE IN THE DISCUSSION. SO HE'S HERE. IF YOU HAD STARTED TO GO DOWN A QUESTION, UM, RELATED TO THAT, AND IF YOU HAVE ANY QUESTIONS FOR HIM. I WAS THINKING ABOUT, I, I WAS THINKING ABOUT THE, UH, THE CHAMBER'S RECENT ENTREPRENEURSHIP EVENT AND THEY [02:55:01] HAD WHAT, FIVE FINALISTS FOR THE AWARD FOR ENTREPRENEURSHIP. AND IT WAS ACTUALLY AN EXCELLENT EVENT. AND I THINK THEY'RE, THEY'RE LOOKING AT THAT SERIOUSLY. AND DAVID HAD SENT ME A NOTE AFTERWARDS, UH, WANTING TO GET TOGETHER AFTER THE FIRST OF THE YEAR WITH, WITH US TO TALK ABOUT HOW THE, A PART, WHAT A PARTNERSHIP WITH THE CITY MIGHT LOOK LIKE. UH, AND I'M ALSO REMINDED THAT I REMINDED MYSELF THAT TWO OF THE CANDIDATES FOR THE OPEN VACANCY ON THE CITY COUNCIL WHO WE DID NOT SELECT TO INTERVIEW, UH, WROTE IN THEIR APPLICATIONS, BOTH OF WHOM WERE ENTREPRENEURS AND WROTE EXTENSIVELY IN THEIR APPLICATIONS ABOUT HOW THEY SAW OR ENTREPRENEURSHIP IN THIS CITY AND WHAT THEIR INTEREST WAS TO DEVELOP THAT. SO I, I THINK THERE'S SOMETHING HERE. I DON'T KNOW WHAT IT IS, BUT I THINK THERE'S SOMETHING HERE. AND I, I WOULD ENCOURAGE US TO REACH OUT TO THOSE FOLKS WHO ARE INTERESTED IN, IN THIS, WHO ARE ENTREPRENEURS AND WHO HAVE DEVELOPED BUSINESSES AND THAT ARE RUN OUT OF SEDONA, EXCUSE ME, UH, THAT ARE ACTUALLY ONE OF, ONE OF THEM IS A GLOBAL BUSINESS AND HE'S THE CEO AND HE'S IN, IS IN A, IN HIS OWN HOUSE AND HIS EMPLOYEES ARE ALL AROUND THE WORLD. SO HOW DO WE DO THAT? UH, AND I THINK WE'RE, WE CAN'T ANSWER THAT QUESTION TODAY, BUT, BUT IS IT OF INTEREST, IS IT OF, OF ENOUGH INTEREST THAT IT'S SOMETHING THAT WE SHOULD PUT SOME ENERGY BEHIND? AND I'M CURIOUS, UH, ANDREW, AS TO YOUR THOUGHTS ABOUT THIS. SO I KNOW I'M COMING IN A LITTLE BIT LATE TO THE CONVERSATION, BUT I WAS, I WAS LISTENING FROM AFAR WHILE I WAS DOING SOME WORK, SO THANKS FOR THE INVITE. UM, YEAH, I MEAN, I, I'M KIND OF COMING BACK TO STUFF I HEARD BEFORE I, BEFORE I GOT HERE A LITTLE BIT. AND I THINK A LITTLE BIT IT WAS LIKE, IS IS OUR TOURISM EXPERIENCE, I THINK TAPPED OUT WAS THE WORD OR KIND OF HAVE REACH A SATURATION POINT. UM, ONE OF THE THINGS THAT I'M REALLY IMPRESSED BY WITH OUR BUSINESS COMMUNITY, SPECIFICALLY THE WELLNESS AND KIND OF SPIRITUAL SECTOR, AND I DO THINK IT'S LIKE WE'RE A GREAT EXAMPLE OF INNOVATION AND THIS IS WHAT I'VE LEARNED FROM THE SIMSA LEADERSHIP. SO I'VE HEARD THIS FROM THEM. I'D LOVE TO GET FACT CHECKED IF THIS ISN'T TRUE. 'CAUSE THEN IT JUST HELPS ME TELL THE STORY BETTER. BUT MY UNDERSTANDING IS THAT THERE ARE TWO FOREST SERVICE DISTRICTS IN THE COUNTRY THAT ALLOW FOR SPIRITUAL AND WELLNESS ACTIVITIES ON THEM THROUGH SPECIAL USE PERMITS. IT'S US AND THEN THE MOUNT SHASTA AREA. AND WE ARE THE ONLY ONES THAT ALLOW FOR COMMERCIAL USE OF FOREST SERVICE LANDS FOR THINGS LIKE YOGA. SO THAT'S A MASSIVE INNOVATION AND DIFFERENTIATION POINT FOR US. UM, IT ALSO FEEDS WELL INTO THE CONTINUED SHIFT TOWARDS EXPERIENTIAL SIDES OF TOURISM. UM, YOU KNOW, WE INCREASINGLY KNOW THAT LIKE WELLNESS HAS BEEN A MEDIA TREND FOR YEARS NOW. BUT, YOU KNOW, ONE THING THAT I SMILED ABOUT WHEN I TOOK THIS JOB WAS THAT WE ARE VERY MUCH WELL POSITIONED FOR THE FUTURE OF WHERE I THINK TRAVEL IS GOING. UM, YOU KNOW, OUR PRIMARY MOTIVATOR FOR TRAVEL IS THE COCONUT NATIONAL FOREST THAT SURROUNDS US, RIGHT? UM, THAT'S WHY PEOPLE ARE COMING, BUT THEY'RE NOT ALWAYS SPENDING MONEY WHEN THEY'RE HIKING, RIGHT? THEY'RE GONNA BE EATING, THEY'RE GONNA BE STAYING AT A HOTEL. UM, THEY'RE BEING ABLE TO CONNECT THE BUSINESS COMMUNITY BETTER WITHIN EACH OTHER THROUGH PARTNERSHIPS. I THINK COUNCILLOR FOLEY MENTIONED THIS THAT, YOU KNOW, THE HOTELS ARE STARTING TO GET BETTER AT THIS THROUGH THEIR WEEKLY EVENT CALENDARS. YOU KNOW, YOU CAN GET A VORTEX TALK FROM PETE SANDERS AT, YOU KNOW, FIVE DIFFERENT HOTELS THROUGHOUT THE WEEK. YOU CAN DO SUNRISE YOGA THAT'S BRINGING IN WELLNESS PRACTITIONERS INTO THE LODGING EXPERIENCE AND CREATING IT AS PART OF THE SALES PACKAGE. SO AT THE VERY LEAST, YOU KNOW, WHAT I'VE SEEN SUCCESSFUL IS LIKE CONNECTED BUSINESS PARTNERSHIPS TO CREATE AUGMENTED TOURISM PRODUCTS. UM, ONE EXAMPLE I'LL JUST SHARE FROM MY TIME IN OREGON THAT I JUST, IT'S NOT RELEVANT TO SONSONA BUT IT'S ONE I JUST LOVE TO SHARE IS, UH, THE SOUTHERN OREGON COAST SURPRISINGLY PRODUCES A LOT OF CRANBERRIES. SO THERE'S CRANBERRY BOGS ALL OVER THE SOUTHERN OREGON COAST, AND YOU CAN GO TO THESE CRANBERRY BOGS AND YOU CAN EXPERIENCE, UM, LIKE EXPERIENCE THE BOG TALK TO THE FARMER, AND THEN IF YOU'RE IN COOS BAY, THERE'S A CIDER HOUSE AND YOU CAN THEN BUY LOCALLY MADE CRANBERRY, YOU KNOW, HARD, HARD CIDER AND SORT OF CREATE THAT CLOSED LOOP CIRCLE WITHIN IT. UM, SO MY CHALLENGE TO ANY DESTINATION I'VE EVER WORKED IN IS HOW DO WE [03:00:01] IDENTIFY HOW TO CONNECT THE BUSINESS COMMUNITY TO EACH OTHER AND CREATE AUGMENTED PRODUCTS. UM, AGAIN, THAT'S SOMETHING THAT I SEE A LOT OF POTENTIAL FOR IS WE DON'T JUST SELL A NIGHT'S DAY. WE DON'T JUST SELL A RESTAURANT EXPERIENCE. WE SELL A COLLECTION OF BUSINESS EXPERIENCES UNDER, UNDER KIND OF ONE UMBRELLA. WE HAVE GREAT EXAMPLES OF THIS ALREADY. IT'S NOT THAT IT'S NOT HAPPENING, BUT THAT TO ME IS WHERE I DON'T THINK WE'RE TAPPED OUT AT ALL FROM AT LEAST OUR LOOKING AT, YOU KNOW, I LOVE THAT I WAS WATCHING YOU TALK ABOUT IT. THERE'S LIKE PRIMARY, SECONDARY, WHAT I WOULD CALL TERTIARY MOTIVATORS FOR TRAVEL. AND YOU'RE LOOKING AT REALLY TYING IN THOSE SECONDARY AND TERTIARY INTO THE PRIMARY POINT OF SALE IN THE FIRST PLACE. SO I THINK PACKAGING UP IS A DEFINITE OPPORTUNITY FOR US. AND THEN WE KEEP HEARING THE CHAMBER IN THIS. I KNOW THAT THEY'RE NOT HERE AND WE CAN'T SPEAK FOR THEM, BUT YOU KNOW, WHAT I'M SORT OF HEARING IS, YOU KNOW, THE CITY AND THE CHAMBER HAVING A CONVERSATION TO SAY, YOU KNOW, HOW DO WE UNDERSTAND MORE WHERE THE RIGHT PLACE FOR THE CITY TO WEIGH IN ON THIS ONE IS WHERE I HAD STARTED WITH THIS WAS MORE ALONG THE LINES OF WHAT THE MAYOR SPOKE ABOUT TO HAVE ENTREPRENEURS WHO, I MEAN, I'M SORRY, THE VICE MAYOR'S ONE OF THEM, YOU KNOW, HE SITS AT HOME AND HE RUNS HIS BUSINESS. UM, WE HAVE, WE HAVE PEOPLE WHO ARE SLOWLY GRAVITATING TO COME LIVE HERE. AND THEY'RE STARTING UP BUSINESSES THAT ARE TECH, THEY ARE ONLINE, THEY ARE DISTRIBUTED ACROSS THE GLOBE. UM, AND THEY HAVE MONEY AND THEY CAN, YOU KNOW, THEY CAN AFFORD BETTER TO LIVE HERE. THEY'RE, THEY'RE NOT NECESSARILY AT THE WEALTH ATTAINMENT LEVEL OF SOME OTHER PEOPLE WHO ARE IN OUR COMMUNITY, BUT, YOU KNOW, THESE ARE PEOPLE WE WOULD LIKE TO ATTRACT. AND ONE OF THE THINGS THAT THEY DO IS THEY BRING THEIR PEOPLE WHO THEY WORK WITH HERE FOR A VISIT, WHO THEN SAY, OH, IT'S REALLY NICE IN SEDONA, MAYBE I'D LIKE TO LIVE HERE TOO. AND SO ULTIMATELY WE'RE BRINGING PEOPLE WHO CAN, WHO CAN AFFORD A LITTLE BIT MORE. WE'RE CHANGING THE NATURE OF WHERE, WHERE WE ARE AS FAR AS A COMMUNITY. BUT THOSE ARE ENTREPRENEURS. I DON'T KNOW IF THEY'RE GONNA GO JOIN THE, THE CHAMBER, RIGHT? I MEAN, THEY MAY HAVE NO INCENTIVE TO JOIN THE CHAMBER. THEY DON'T HAVE A PRODUCT THAT THEY SELL IN A BRICK AND MORTAR STORE. UM, YOU KNOW, THEY'RE NOT SE SELLING AN EXPERIENCE WHICH ULTIMATELY IS EITHER IN A BRICK AND MORTAR STORE OR IT'S OUT IN THE FOREST. BUT THIS, I JUST FEEL LIKE WE CAN'T FORGET THAT THESE PEOPLE ARE OUT THERE AND SINCE COVID THERE'S MORE OF THEM AND YOU KNOW, THERE'S, THERE ARE MORE PEOPLE WHO ARE BEING INNOVATIVE FROM THEIR HOME GLOBALLY CONNECTED. AND I THINK THAT, I JUST THINK THAT THAT'S A MARKET. WE HAVE THE PERFECT ENVIRONMENT FOR THEM TO BE INSPIRED TO CONTINUE THEIR INNOVATION. AND AND I, I JUST DON'T WANT US TO LOSE SIGHT OF THAT DEREK. IT DOESN'T HAVE TO JUST BE ENTREPRENEURS. I MEAN, I, AND I REALIZE OUR INTERNET SERVICE IS A CONSTRAINT, BUT THIS IS A GREAT TELECOMMUTING LOCATION. YOU DON'T HAVE TO BE AN ENTREPRENEUR. I MEAN, I'M JUST SOME SCHMUCK LAWYER WHO WORKS FOR A FIRM IN PHOENIX. I DON'T HAVE TO SIT FACE TO FACE WITH MY CLIENTS. AND I'VE WORKED FROM HOME SINCE I GOT HERE. UM, AND I THINK THE MORE FULL-TIME PEOPLE WE ATTRACT, YOU KNOW, WE WANT TO, WE WANT TO HEDGE AGAINST CHANGES IN TOURISM AND THE ECONOMY. WELL, I MEAN, I'M HERE ALL THE TIME AND I'M SPENDING MONEY ALL THE TIME 'CAUSE I LIVE HERE. UM, I HAVE LESS MONEY 'CAUSE I'M DOING THIS. BUT, UM, BUT AGAIN, IF WE CAN GET MORE PEOPLE LIKE THAT, IF WE PITCH THIS AS A, HEY, THIS IS A GREAT PLACE TO LIVE AND WORK AND AS LONG AS YOU CAN TOLERATE THE INTERNET CRASHING, YOU KNOW, TWO OR THREE TIMES A DAY FOR A FEW MINUTES AT A TIME, UH, COME TO SEDONA THAT DIDN'T FIX THAT. I, I I HAVE A QUESTION FOR EVERYBODY. I, I HAVE SUDDEN LINK AS MY PROVIDER, UH, ALTIS AND ONE DAY THEY SENT ME AN EMAIL AND SAID, CONGRATULATIONS, WE'VE JUST UPGRADED YOU TO ONE GIG. I DON'T KNOW IF THAT'S BECAUSE I LIVE FAIRLY CLOSE TO THE LIBRARY OR WHAT, BUT I HAVE ONE GIG, I DON'T HAVE INTERRUPTIONS AND THEY DIDN'T CHARGE ME ANYTHING EXTRA FOR IT EITHER. UH, SO IT MAY JUST BE MY LOCATION, BUT HA HAVE OTHER PEOPLE GOTTEN , THE MAYOR? NO, IT'S HAD NOTHING TO DO WITH THE MAYOR. THIS IS NO, NO, THIS HAPPENED WAY BEFORE I WAS THE MAYOR. UH, AND AND BY THE WAY, IT IS THE REASON WHY IN A WAY THAT WE DON'T QUALIFY [03:05:01] FOR THE BEAD FUNDING IS BECAUSE THEY HAVE MADE A LOT OF IMPROVEMENTS AND HAVE EXTENDED BROADBAND HERE, BUT ARE OTHER PEOPLE IN OTHER PARTS OF SEDONA GETTING THAT WHOLE, LAST NIGHT MY WIFI WAS OUT , I HAD A CALL FOR SERVICE. AND SO I LIVE IN THE COFFEE POT AREA AND I HAVE ONE GIG AND I ALMOST NEVER HAVE PROBLEMS. THANK YOU. ONE, WHERE ARE WE AT? WELL, THANK YOU SIR. UM, WHAT, WHAT I WAS THINKING WHERE, WHERE THIS LEADS US THEN AGAIN, IT GOES BACK TO WHAT CAN YOU DO ABOUT IT, RIGHT? SO TWO QUESTIONS. FIRST, UM, GOING BACK TO, 'CAUSE JOE REMINDED ME, I NEED TO MAKE SURE AND ASK THIS ONE, DO YOU SEE THIS IMPORTANT ENOUGH OR DOES IT SLIDE UP YOUR THIRD PRIORITY? UM, IS IT SOMETHING WORTHY OF BEING A PRIORITY AND YES MA'AM. I I HAVEN'T THOUGHT ABOUT IT. YES, WE HAVE, AND I JUST PUT THIS OUT TO GET A RESPONSE FROM EVERYBODY. COULD WE HAVE SOMETHING A AN AREA CALLED EMERGING PRIORITIES? IN OTHER WORDS, WE DO HAVE NO, BECAUSE SERIOUSLY WE HAVE OUR TOURISM DEPARTMENT IS ALLEGEDLY ECONOMIC DEVELOPMENT AS WELL. I DON'T THINK WE DO MUCH IN THAT, BUT THAT'S THE TITLE OF THE DEPARTMENT. RIGHT. AND IT'S ALSO UNDER MY JOB DESCRIPTION. OKAY. AND IT'S HIS IN HIS JOB DESCRIPTION. SO IS THIS SOMETHING THAT WE COULD TASK IF, IF THE CITY MANAGER IS OPEN TO THIS, THIS EXISTING DEPARTMENT TO PUT SOME ENERGY IN AND, AND EMERGE IT AS A POTENTIAL FOR CONSIDERATION NEXT YEAR. SO IN OTHER WORDS, DO THE WORK THIS YEAR TO FLESH IT OUT SO THAT IT MAY RAISE TO THE LEVEL. 'CAUSE I THINK THERE'S A LOT OF WORK THAT HAS TO BE DONE, BUT I DON'T KNOW CAPACITY. IT'S NOT MY DECISION. IT'S YOUR DECISION AND, AND OUR COUNCIL'S DECISION, YOU KNOW, WE MIGHT ALSO THINK ABOUT THE DECLINING PRIORITIES, BUCKET TOO. IF WE'RE GONNA DO A MERGING, YOU TAKE SOME, YOU GOTTA GET RID OF SOME, WHICH IS REALLY WHAT I WANTED TO SAY ABOUT IT. I THINK ECONOMIC DEVELOPMENT'S IN THE TITLE, I THINK HE THINKS ABOUT IT. AND IF WE WANNA ELEVATE THAT AS A PRIORITY FOR HIM THIS YEAR, WHAT IS HE NOT GOING TO DO? RIGHT. WE HAVE TO HAVE THAT CONVERSATION. UH, THANKS FOR THE QUESTION MAYOR. UM, IT IS A VERY SMALL DEPARTMENT AND RIGHT NOW WE HAVE MONEY PROGRAMMED, UM, TO SUPPORT REGIONAL ECONOMIC DEVELOPMENT PARTNERS AND THAT TYPE OF THING WHEN IT COMES TO THIS TOPIC VERSUS, YOU KNOW, THE DMO. UM, AND SO IF YOU WANTED US TO LOOK AT LIKE WHAT WOULD IT TAKE TO HAVE THE ABILITY TO BE MORE ACTIVE IN THAT SPACE THAN JUST, UM, CONTRACTING WITH OTHER ECONOMIC DEVELOPMENT REGIONAL GROUPS TO, UM, WE COULD DO THAT. I MEAN, WE COULD LOOK AT LIKE WHAT WOULD BE SOMETHING THAT COULD REASONABLY BE DONE OR WHAT WOULD IT TAKE TO HAVE THE CAPACITY TO UM, DO A BUNCH OF RESEARCH OR WHATEVER TO BRING BACK THOUGHTS FOR THE NEXT BUDGET CYCLE. I MEAN, WE COULD DO THAT. UH, BUT RIGHT NOW WE JUST DON'T HAVE LIKE STAFF POWER BECAUSE THE BULK OF ANDREW'S TIME, I THINK IS IN THE DMO AND THE TAB AND ALL THE INITIATIVES THAT THE COUNCIL HAS ADOPTED IN THE STRATEGIC PLAN FOR THE TAB. YEAH, AND I WOULD SAY THAT OBVIOUSLY MY MISSION WHEN I GOT HERE WAS TO PROP UP THE DMMO HERE. UM, YOU KNOW, I HAD THAT SAME QUESTION WHEN I WAS LIKE, ARE WE DOING ECONOMIC DIVERSITY OR ARE WE DOING ECONOMIC RESILIENCE? RIGHT? I THINK IT'S ALWAYS GOOD TO ASK OURSELVES THAT. I THINK THE DECISION THAT WE MADE INTERNALLY WAS WHEN WE LOOK AT ECONOMIC DEVELOPMENT, IT'S BUILDING A MORE RESILIENT TOURISM ECONOMY. AND THAT'S REALLY JUST BEEN, IT'S NOT THAT THAT'S BLACK AND WHITE, BUT THAT WOULD, THAT'S WHERE I WOULD SAY, YOU KNOW, MY, MY FOCUS HAS BEEN OF SET UP THE DMMO, THIS IS OUR BREAD AND BUTTER. LET'S MAKE SURE THAT IT'S HIGHLY FUNCTIONAL. AND I THINK THERE'S A LOT OF OPPORTUNITIES TO ENHANCE THAT. UM, AND I THINK WHEN WE KEEP THAT NUMBER TWO ON THE BOARD, THE WAY WE'RE LOOKING AT THIS POTENTIALLY EMERGING PRIORITY, UM, WOULD BE THAT, YOU KNOW, IF IT'S IN RESILIENCE, THAT IS VERY PARALLEL TO THE WORK THAT I'M DOING ALREADY. AND I THINK IT JUST PUTS MORE ONUS ONTO THE WAY WE'RE THINKING ABOUT THE TOURISM ECONOMY AND THE WAY THAT WE CAN INNOVATE MORE IN THAT SPACE. IF WE START TO GET INTO DIVERSITY MORE, THEN THAT'S REALLY SPLITTING ME UP [03:10:01] IN A MUCH BIGGER WAY, UM, THAT I THINK WOULD HAVE QUESTIONS WITH, YOU KNOW, CITY ADMINISTRATION AND LEADERSHIP ON, YOU KNOW, HOW DO WE STRUCTURE THAT INTERNALLY OTHER THAN, AGAIN, THE WAY THAT WE'RE ADDRESSING DIVERSITY IS THROUGH ESSENTIALLY PAYING FOR ADDITIONAL CAPACITY AT THE REGIONAL ECONOMIC DEVELOPMENT ENTITIES AND HAVING A PRESENCE THERE AND MAKING SURE OUR PRIORITIES ARE ALIGNED. A LOT OF THINGS LIKE HOUSING AND BROADBAND DON'T HAPPEN IN A VACUUM OF JUST R ONE CITY. IT DOES HAPPEN KIND OF AT THE VERDE VALLEY LEVEL. UM, BUT AGAIN, YOU KNOW, I PERSONALLY I'M ALSO BIASED 'CAUSE I'M A TOURISM MANAGER, BUT, AND ALSO ECONOMIC DEVELOPMENT. BUT I COME FROM A TOURISM BACKGROUND THAT, YOU KNOW, RESILIENCE IS WHERE, YOU KNOW, I SEE THE MOST LOW HANGING FRUIT OPPORTUNITY HERE. UM, WITH DIVERSITY BEING A LONGER FORM PLAY, THAT THERE'S A LOT OF MOVEMENT HAPPENING IN THE VERDE VALLEY ON AS WELL. SO, A COUPLE OF REASONS WHY THIS WAS REALLY IMPORTANT TO ME. SO IT GOES TO THE QUESTION, WHO DO WE WANT TO BE? DO WE WANNA MAINTAIN OR DO WE WANT TO GROW? AND THAT QUESTION ALSO THEN GOES TO HOUSING. DO WE, YOU KNOW, KATHY'S SAYING WE NEED TO MAKE SURE WE'VE GOT, YOU KNOW, SENIOR LIVING AND ASSISTED LIVING BECAUSE THAT'S MAINTAINING WHERE WE ARE BASED ON THE INFORMATION THAT WE SAW. VERSUS DO WE WANNA HAVE HOUSING THAT IS ALSO AFFORDABLE OR ATTAINABLE AND ATTRACTIVE TO PEOPLE WHO WANT TO DO REMOTE WORK OR WANT TO, LIKE, YOU'RE NOT GONNA PUT SOMEONE WHO WANTS TO DO REMOTE WORK. YOU, YOU CAN'T PUT THAT HOUSING SO FAR AWAY FROM WHAT WE CURRENTLY HAVE AS BROADBAND. THEY AREN'T GETTING ONE GIG AND IT IS INTERMITTENT, RIGHT? SO JUST TO LET YOU KNOW, SUDDENLY DOES DISAPPEAR OCCASIONALLY AT MY HOME. AND HENCE I ALSO HAVE A T-MOBILE ROUTER SO THAT I CAN SWITCH. 'CAUSE IT RUNS OFF THE 5G CELL, WHICH DOESN'T GO AWAY A LOT SLOWER, BUT I NEED IT AT WHERE I AM. SO ALL OF THOSE THINGS DO COME INTO PLAY HERE. AND I'M GONNA SAY SOMETHING REALLY CONTROVERSIAL. AND SO CITY MANAGER, I'M JUST PUTTING IT OUT THERE. I'M NOT SAYING ANYTHING. WHY IS ECONOMIC DIVERSITY UNDER TOURISM AND NOT UNDER COMMUNITY DEVELOPMENT? BECAUSE IT'S ABOUT DEVELOPING OUR COMMUNITY THROUGH DIVERSIFYING BECAUSE IT IMPACTS OUR HOUSING, UH, AND WHAT WE CHOOSE TO DO FOR HOUSING, WHICH COULD THEN IMPACT TRANSPORTATION. AND WHAT WE'RE GONNA DO FOR TRANSPORTATION ALSO CHANGES THE NATURE, POTENTIALLY OF OUR COMMUNITY. AND SO THE KINDS OF EVENTS AND THE KINDS OF THINGS WE WANNA DO WILL ALSO BE IMPACTED BY THOSE FOLKS. AND, YOU KNOW, IF THEY'RE ALL BIKERS, WELL LET'S GO GET THOSE SUVS UP AND RUNNING FASTER THAN, YOU KNOW, SOME, I I'M JUST THROWING THAT OUT THERE AS IT SEEMS ODD TO ME. UM, BUT TONY, I'M NOT TRYING TO GIVE YOU MORE WORK EITHER. UM, BUT TO ME THAT'S WHY THE ECONOMIC DIVERSITY WAS IMPORTANT. IF WE DON'T START THINKING ABOUT IT NOW, IT'S HARD TO GET THIS GOING THINKING WISE AND IT'S GOING TO IMPACT OUR HOUSING PROGRAM, WHICH IS A PRIORITY. IT'S GONNA IMPACT OUR TRANSPORTATION, WHICH IS A PRIORITY. AND IT CHANGES POTENTIALLY THE NATURE OF OUR COMMUNITY, WHICH IS A PRIORITY. THE THANK YOU FOR THE QUESTION. I CAN GIVE YOU LIKE A BASIC ANSWER AND THEN A PHILOSOPHY. UM, SO, OKAY, I'VE BEEN HERE, I DON'T KNOW, IT'LL BE TWO YEARS IN APRIL. UM, AND I BELIEVE THAT, UH, IT WAS ORIGINALLY IN THE CITY MANAGER'S OFFICE BEFORE THE DMO FUNCTION CAME TO THE CITY. AND I BELIEVE IT WAS JUST LIKE A PRACTICAL, LIKE, NOW WE'RE GOING TO HAVE THIS ANOTHER THING IN THE CMO AND WE'RE JUST GONNA COMBINE IT TOGETHER. UM, BUT I DON'T KNOW FOR SURE 'CAUSE I WASN'T HERE WHEN THAT WAS SET UP THAT WAY, BUT I THINK THAT WAS, IS THAT RIGHT? YEAH. AND SO I THINK IT WAS JUST BECAUSE IT WAS ALREADY IN CMO THAT IT WAS COMBINED THAT WAY. UM, BUT PHILOSOPHICALLY, I MEAN, I'M TRYING REALLY HARD TO NOT HAVE OUR DEPARTMENTS WORK IN SILOS FROM EACH OTHER. SO FOR ME, IT DOESN'T REALLY MATTER IF IT'S IN CMO OR COMMUNITY DEVELOPMENT, WE'RE ALL GONNA WORK TOGETHER TOWARDS THESE THINGS. UM, UM, SO I GUESS I WOULD JUST THROW THAT OUT THERE THAT WHEN WE HAVE TOPICS THAT CROSS, UM, UM, FUNCTIONS, YOU KNOW, WE'RE TRYING TO DO MORE TEAMING AND WORK TOGETHER ON ALL THIS STUFF TO ADVANCE THESE THINGS. SO I'M NOT SURE IF HAVING HALF OF ANDREW OR A THIRD OF ANDREW BEING COMMUNITY DEVELOPMENT'S GONNA CHANGE OUR ABILITY TO ACTUALLY LIKE, CARRY FORWARD LIKE WHAT THE GOALS OF THE COUNCIL ARE. SO YEAH, AND IF I CAN, ALONG THAT SAME LINE, AND THIS IS WHY I LOVE THE SETUP THAT CITY MANAGER HAS SET UP, BECAUSE I MEAN, ANDREW AND I ARE GONNA NERD OUT TOGETHER REGARDLESS AS IT RELATES TO THESE TYPES OF THINGS. SO IT'S, UH, YEAH. SO THAT'S GONNA HAPPEN EITHER [03:15:01] WAY. I THINK WE JUST HAVE THAT NATURAL, I MEAN, THAT'S THE WAY WE'RE SET UP AS A TEAM RIGHT NOW, WHICH IS EXCITING. SIR, I JUST WANNA POINT OUT, I FEEL LIKE MOST RESIDENTS WOULD PROBABLY SUPPORT GOING MORE FOR DIVERSITY THAN MAKING THE TOURISM MORE RESILIENT. I MEAN, I FEEL LIKE COMMON REFRAIN FROM RESIDENCES ARE TOO MANY TOURISTS. YOU KNOW, LET'S TRY TO FIGURE OUT WAYS TO ATTRACT PEOPLE WHO AREN'T TOURISTS. UM, SO I MEAN, I REALIZE WE NEED TO KEEP THE, HELP THE BUSINESS COMMUNITY AND HELP THE ECONOMY, BUT I THINK A LOT OF OUR RESIDENTS FEEL LIKE WE'RE KIND OF, THEY'RE KIND OF OVERWHELMED WITH TOURISM. SO I MEAN, TO ME THAT WEIGHS IN FAVOR OF FINDING OTHER OPTIONS. SO WHAT I WOULD SUGGEST IS ALONG THAT SAME LINE IS AGAIN, IT GOES BACK TO WHAT YOU CAN DO ABOUT IT, RIGHT? UM, AT THE END OF THE DAY, YOU KNOW, WHAT CAN WE DO TO PROMOTE AND WHEN WE FALL BACK TO ECONOMIC INFRASTRUCTURE, THEN IN TERMS, YOU KNOW, WHETHER IT'S THE BROADBAND, WHETHER IT'S TRANSPORTATION, TYPES OF IMPROVEMENTS, UM, YOU NAME IT. YOU KNOW, CREATING A SITUATION THAT MAKES US, UM, MORE ATTRACTIVE TO ENTREPRENEURS AND MORE ATTRACTIVE TO INNOVATORS. UM, PARTNERSHIP, YOU KNOW, THE, THE DISCUSSION OF MOVING FORWARD AND STRONGER COLLABORATION WITH OUR PARTNERS, THE CHAMBER AND OTHER REGIONAL GROUPS, UM, FOR PURPOSES OF BUILDING THAT DIVERSITY. I THINK FROM THAT PERSPECTIVE, UM, COUNCIL MEMBER FAFT TO GO TO YOUR POINT, IF WE WERE TO, IF THAT IS SOMETHING THAT'S IMPORTANT, THEN WE WOULD WANT TO FLESH OUT THOSE TYPES OF THINGS AS TO WHAT IMPACTS WE CAN HAVE, WHAT ROLES WE CAN PLAY, AND THEN HOW DO WE TURN THAT INTO AN IMPLEMENTATION PROGRAM TO DIVERSIFY, YOU KNOW, AND SET A REASONABLE GOAL FOR OURSELVES. 'CAUSE AT THE END OF THE DAY, AS, AS YOU SAID, WE NEED TO BE REASONABLE ABOUT WHAT THIS APPROACH NEEDS TO BE. UM, YOU KNOW, SO LET, WE CAN BE VISIONARY, BUT WE CAN BE PRACTICAL AT THE SAME TIME ON WHAT WE SET OUR GOAL TO BE. AND THAT WOULD GIVE US, AS STAFF A GUIDEPOST TO BUILD OFF OF IN TERMS OF HOW DO WE NUDGE THINGS A CERTAIN DIRECTION, WHAT TYPES OF IMPROVEMENTS WE NEED TO PROPOSE, WHAT TYPES OF REGULATIONS WE NEED TO CHANGE, ET CETERA, TO GET US ON THAT PATH. DOES THAT MAKE SENSE? SO THAT WOULD BE THE DIRECTION THAT I WOULD SUGGEST FROM WHAT I'M HEARING, IF THAT'S A PATH YOU WANT TO TAKE, THAT'S PROBABLY WOULD BE THE NEXT LOGICAL STEP. SO WHAT WOULD THAT LOOK LIKE IN OUR PROCESS? SO IF WE'RE TRYING TO PICK THREE PRIORITIES, BUT WE ALL AGREE, WE ALL AGREED THAT HAVING THREE PRIORITIES DIDN'T MEAN WE DIDN'T DO OTHER THINGS. SO WHERE WOULD THIS FIT? UM, IN MY MIND, THIS SOUNDS LIKE OPERATIONAL, YOU KNOW, IT DOESN'T HAVE TO BE COMPETING FOR THE TOP THREE THAT YOU'VE ALREADY TALKED ABOUT. UM, THIS IS, HERE'S A TASK WE WANNA WORK ON, TYPE OF THING, RIGHT? UM, SO I WOULD SUGGEST THAT, UM, WE'VE HEARD THE FEEDBACK ON WHAT YOU GUYS WOULD BE INTERESTED IN LEARNING AND KNOWING ABOUT WHAT THAT COULD INFORM US TOWARDS. UM, BUT I DON'T KNOW THAT IT HAS TO BE, YOU KNOW, IDENTIFIED AS A PRIORITY CATEGORY TO, TO TALK ABOUT THE THINGS OR WORK ON THINGS THAT YOU JUST TALKED ABOUT. UM, BUT THAT'S JUST MY TAKEAWAY. 'CAUSE AGAIN, UM, WE DON'T HAVE EVERY DEPARTMENT REPRESENTED WITHIN THE PRIORITIES, BUT THAT DOESN'T MEAN THAT WHAT THEY'RE DOING ISN'T IMPORTANT OR ISN'T GOING TO CONTINUE. SO WE'RE TRYING TO MAKE THAT DISTINCTION. UM, I DON'T KNOW IF THAT'S HELPFUL TO YOU. IT, IT IS HELPFUL, BUT I SEE THIS AS EXPANDING, UH, A THIS IS NOT CURRENTLY BEING DONE. SO IT, ISN'T IT AN EXPANSION? I MEAN, DO YOU THINK OF IT AS WE NEED TO LOOK AT WHAT, YEAH, THIS IS GONNA TAKE, AND THEN WHEN WE COME BACK IN THE BUDGET PROCESS, WE MAY HAVE A DECISION PACKAGE, WE MAY HAVE SOME IDEAS ON HOW TO REPURPOSE SOME THINGS. I'M NOT SURE YET, BUT, UM, SO, SO TO PETE'S QUESTION ABOUT IF YOU ADD, YOU SUBTRACT RIGHT TO GET TO ZERO, UH, [03:20:01] DOES, DO THE MEMBERS OF THE COUNCIL AGREE WE SHOULD PUT SOME ENERGY INTO THIS? ESPECIALLY FIRST OF ALL, THE ONES WHO THOUGHT ECONOMIC DEVELOPMENT WAS A PRIORITY, AND THEN SECONDLY, THOSE WHO DIDN'T THINK SO WELL, I FALLEN THE SECOND COUNT, SO I KNOW, BUT , OKAY. UM, ABOUT, HAVE WE BEEN ON THIS ALMOST AN HOUR? I THINK IT FEELS LIKE I LOOKED AT THE CLOCK, RIGHT? AND IT HASN'T MOVED ME FROM WHERE I WAS YESTERDAY, WHICH TO ME, THIS STILL SOUNDS LIKE A LENS RATHER THAN A PRIORITY ISSUE. YOU KNOW, THAT WE LIST 1, 2, 3, THESE ARE THE TOP PRIORITIES WHERE WE WANNA PUT PERSONNEL, UH, TIME, MONEY FOR, FOR PROJECTS. UH, IT'S, IT'S LIKE COMMUNICATION. IT'S ALSO OVERARCHING FOR EVERYTHING WE DO. SHOULD WE, WE SHOULD BE TALKING ABOUT WHAT IS THE ECONOMIC IMPACT ON THE CITY? IS THIS A PLACE WHERE WE WOULD WANT TO GROW OR DIVERSIFY OR SCALE BACK? I, I STILL LOOK AT ALL OF THIS AS JUST ECONOMY VERSUS, YOU KNOW, ECONOMIC DEVELOPMENT. I, I, IT'S HARD TO SEPARATE THE TWO, BUT AGAIN, FOR ME IT'S STILL A LENS LIKE COMMUNICATION THAT YOU LOOK AT IT ALL THE TIME, BUT IT'S NOT LIKE A PRIORITY LIST ITEM. SO I HAVEN'T REALLY MOVED FROM WHERE I WAS, ALTHOUGH THANK YOU FOR ALWAYS A THOUGHTFUL DISCUSSION. THANK YOU, MAYOR. UH, I'LL ECHO COUNSELOR. KINSELLA, I APPRECIATE ANNETTE, YOUR DESCRIPTION OF, UH, YOU KNOW, HOW YOU WOULD APPROACH, UH, THIS MATTER THAT IT'S JUST PART OF THE GENERAL WORK PROGRAM, BUT NOT ELEVATED TO THE LEVEL OF BEING A TOP THREE PRIORITY. I KEEP COMING BACK TO, UH, JONATHAN'S CRITERIA YESTERDAY OF, YOU KNOW, LET A CRISIS BE WHAT DRIVES, WHAT OUR PRIORITIES ARE. AND I JUST DO NOT SEE ECONOMY AS A CRISIS FOR OUR COMMUNITY THAT WE WANT TO RALLY AROUND, THAT WE WANT TO HAVE A 66 DAY MINDSET ABOUT. SO IS IT IMPORTANT? YES. SHOULD IT BE WORKED ON? YES. IS IT A TOP THREE PRIORITY? NOT IN MY OPINION. WE, I'D LIKE EVERYBODY TO WEIGH IN , LIKE IT OR NOT. I, I'M SOMEWHAT MOVED BY COUNCILLOR FAFS CALL THAT LOTS OF THE PERMANENT RESIDENTS MEMBER OF OUR COMMUNITY MIGHT HAVE ECONOMIC DIVERSITY AS A HIGHER PRIORITY THAN IT CURRENTLY SORT OF EXISTS ON OUR ACKNOWLEDGED PRIORITY LIST. UM, BUT THAT SAID, I DON'T KNOW THAT THERE'S A LOT OF, EVEN IF IT SHOWED UP AS A PRIORITY, THERE ISN'T A LOT TO DO YET. BROADBAND IS ONE . WE JUST NEED TO KEEP PUSHING THAT AND DRIVE THAT OVER. AND, AND EVEN IF WHATEVER'S HAPPENED AND NOW FAILS, WE NEED TO CONTINUE TO PUSH SOMETHING THAT HAS TO BE SOLVED AS A BASE CASE FOR GETTING WORK FROM HOMERS INTO TOWN. NOT EVERYONE HAS GIGABYTE. I PAY FOR 300 MEGABYTE AND IT DOESN'T, I REALLY DON'T GET IT. AND IT COSTS A LOT OF MONEY. YOU CAN CALL AND NEGOTIATE AND GET A BETTER RATE. BUT, YOU KNOW, I WOULD SAY THAT THERE'S A LOT OF PEOPLE IN OUR TOWN THAT CAN'T AFFORD TO HAVE TWO SERVICES. AND SO, RIGHT, THE COMPETITION ASPECT OF WHAT'S AVAILABLE TO US AND THE WHAT'S ACTUALLY DELIVERABLE, WHATEVER FFCC HEARD, UH, VERSUS THE FACTS ON THE GROUND ARE, ARE DIFFERENT STORIES. SO, I DON'T KNOW. I THINK THERE'S SOMEWHAT OF A CASE FOR SAYING THAT ECONOMIC DIVERSITY IS A, AND, AND I WOULD SAY IT THAT WAY RATHER THAN ECONOMIC DEVELOPMENT, BUT I DON'T, THAT'S JUST SEMANTICS, REALLY. THERE'S A CASE FOR MAKING THIS A PRIORITY. IT DOESN'T DRIVE A LOT OF RESOURCES RIGHT NOW. IT, BUT IT GOES INTO, ARE ALL OF THE DEPARTMENTS THINKING ABOUT, YOU KNOW, THAT WHAT ARE THE THINGS THAT MAKE FOR ECONOMIC DIVERSITY AND WORK FOR HOMERS? IT'S BROADBAND, BETTER SCHOOLS AND A COOL TOWN. WELL, HERE'S THE COOL TOWN GUY. SO WE GOT ONE OF THOSE PUBLIC SCHOOLS. WE ALL STRUGGLE ABOUT TRYING TO REACH AND WORK WITH OUR SCHOOL DISTRICT AND WE NEED TO FIGURE OUT HOW TO MAKE THAT WORK. UM, AND THEN THE, YEAH, BROADBAND, UH, THIS, THE ECONOMIC STILL PRIORITY FOR ME. UM, I, BUT OUR, OUR ALTERNATIVE WAS TRANSIT, TRANSPORTATION, MOBILITY. I MEAN, I THINK THIS TRUMPS THE STILL, [03:25:05] I THINK YOU ALL KNOW WHERE I STAND. UM, REMIND US , TOO MUCH WATER UNDER THE BRIDGE SO FAR TOO MUCH WATER UNDER THE BRIDGE. UM, I THINK THIS IS CRITICAL FOR THE FUTURE OF SEDONA. UM, OUR, OUR ECONOMIC DRIVER IS THE RED ROCKS, RIGHT? OR COCONINO NATIONAL FOREST, IF YOU CHOOSE TO SAY IT THAT WAY. BUT HONESTLY, IT'S THE RED ROCKS. AND, UM, THAT MIGHT NOT ALWAYS BE THE CASE. AND IT MAY NOT ALL ALWAYS BE THE CASE THAT OUR TRAILS ARE GOING TO BE IN A GREAT CONDITION FOR MOUNTAIN BIKERS AND HIKERS. AND I, I HAVE NO IDEA WHAT'S GONNA HAPPEN. IT COULD BE THE FEDERAL GOVERNMENT'S GONNA DECIDE TO SELL SOME OF THAT, WHETHER WE PROTEST OR NOT. WE'VE ALREADY HAD THAT CONVERSATION ONCE, UM, IN THE FEDERAL GOVERNMENT. SO, UM, I THINK IT'S IMPORTANT, AND I THINK IT IMPACTS OUR PRIORITIES. I THINK IT IMPACTS THE NATURE OF OUR COMMUNITY. IT'S GOING TO IMPACT HOW WE THINK ABOUT, UM, COMING TOGETHER AS A COMMUNITY WITH THE NUMBERS THAT WE SAW, THE INITIAL NUMBERS THAT WE SAW, UM, YESTERDAY. TO ME, THAT'S A CRISIS. TO ME. IT'S A CRISIS IN OUR COMMUNITY. IF WE'RE WE'RE SAYING THAT OUR COMMUNITY EVERY YEAR IS GETTING OLDER AND OLDER AND OLDER, UM, BECAUSE WHEN THOSE HOUSES SELL, THEY COULD JUST SELL TO SECOND AND THIRD HOMES. AND THAT BECOMES OUR COMMUNITY, RIGHT? NOT A VIBRANT COMMUNITY. NOT A COMMUNITY WITH REMOTE WORKERS, NOT A COMMUNITY THAT, YOU KNOW, WE WANTED TO MOVE IN BECAUSE IT HAD THIS SMALL TOWN ATMOSPHERE BACK WHEN MOST OF US MOVED HERE. NOT ALL OF US, BUT MOST OF US, UH, MOVED HERE. AND I THINK IT IMPACTS HOUSING DECISIONS WE'RE GONNA MAKE THIS YEAR, RIGHT? IF WE'RE GONNA MAKE HOUSING DECISIONS THIS YEAR, ARE WE GONNA MAKE THEM FOR ONLY SENIORS IN AN AGING POPULATION? ARE WE GOING TO SAY WE DON'T WANT THEM ALL TO BE, UH, YOU KNOW, STUDIOS IN ONE BEDROOMS BECAUSE WE WANT TO ATTRACT THIS. AND ONCE WE'VE BUILT THEM, THEY'RE VERY HARD TO CHANGE, TO BE ANYTHING OTHER THAN WHAT THEY ARE. SO THAT'S GONNA IMPACT HOUSING. UM, I THOUGHT OF THIS MORE IN HIS, HIS WEIRD WAY OF DEFINING THINGS. THIS IS A VALUE, THIS IS A CORE DIVERSITY. ECONOMIC DIVERSITY SHOULD BE ONE OF OUR CORE VALUES. WE'RE ALWAYS THINKING ABOUT IT. WE'RE ALWAYS TRYING TO FIGURE HOW DO WE MAKE THIS BETTER? WHAT DO WE NEED TO DO? HOW DOES THIS IMPACT WHAT WE'VE DECIDED ARE THIS YEAR'S PRIORITIES? AND I SAY THAT INTENTIONALLY, THOSE ARE OUR PRIORITIES THIS YEAR. THEY MAY NOT BE THE SAME PRIORITIES WE HAVE NEXT YEAR OR THE YEAR AFTER THAT. I DON'T KNOW. IT DEPENDS ON WHAT HAPPENS IN THE WORLD AND WHAT HAPPENS IN S BUT I THINK THIS IS CRITICAL FOR THE SURVIVAL OF SEDONA. AND IT CANNOT JUST BE RE RESILIENCE INSIDE OF OUR TOURISM. I AGREE. I HEAR THE SAME THINGS ALL THE TIME. WE HAVE TOO MANY TOURISTS. I HEAR DOWN IN PHOENIX THAT THEY DON'T WANNA COME HERE ANYMORE BECAUSE, YOU KNOW, ON THE WEEKEND IT'S SO BUSY HERE, RIGHT? AND, AND THAT'S NOT EVEN HERE. AND THEY DON'T WANT SO MANY TOURISTS IN SEDONA. SO I THINK THIS IS CRITICAL. OKAY, SO WHERE ARE WE? YOU KNOW, WE ARE SPLIT, BUT JONATHAN, UH, HE MADE UP A NUMBER OF THREE. WE HAD 18, HE MADE UP THREE. WE COULD HAVE FOUR , WE COULD HAVE ANY NUMBER WE WANT. DOESN'T HAVE TO BE LIMITED, DOESN'T HAVE TO BE LIMITED TO THREE. UH, AND WE'D STILL BE REDUCING THE NUMBER OF PRIORITIES. SO I STILL BELIEVE THIS IS A, A PRIORITY. I WOULD HATE TO HAVE A CRASH AND US SCURRYING AROUND SAYING, WHY DIDN'T WE LOOK AT THESE ALTERNATIVES? I DON'T, YOU KNOW, IT'S NOT, TO ME IT'S ALWAYS BEEN A CRISIS THAT WE ARE COMPLETELY RELIANT ON ONE INDUSTRY AND IF SOMETHING HAPPENS IN THAT INDUSTRY, WE'RE TOAST. UH, SO TO ME THAT IS A CRISIS, EVEN THOUGH IT IS A RESILIENT INDUSTRY, BUT IT MAY NOT ALWAYS BE. AND WE ARE SEEING A SOFTENING IN THE MARKET, AND I DON'T WANT US TO BE WISHING THAT WE HAD FORESIGHT AND SAYING, OH NO, WHAT DO WE DO NOW? AND WE DIDN'T HAVE TIME TO PLAN FOR IT OR PREPARE FOR IT. SO I GUESS WHERE I'M, WHERE I'M AT, AND I HEAR PETE'S MOVING A LITTLE BIT IN THIS DIRECTION. SO NOW I THINK WE HAVE FOUR PEOPLE AS OPPOSED TO THREE AND A HALF, THREE PEOPLE TO TWO AND A HALF, THREE AND A HALF, RIGHT? I'M ACTUALLY WHERE YOU WERE, THIS IS LIKE A SOFT FOURTH FOR ME. MM-HMM . THERE'S A LOT TO DO NOW, BUT IT'S A PRIORITY. . SO ARE YOU GUYS, YOU TWO OUTLIERS OVER THERE WILLING TO MAKE A FOURTH PRIORITY. [03:30:06] MY MY QUESTION TO THAT IS, IF IT GOES ON A PRIORITY LIST, WHAT RESOURCES ARE YOU COMMITTING TO IT? WHAT, WHAT? TELL ME WHAT RESOURCES? TELL ME WHAT PROJECT YOU SEE, TELL ME WHAT I MEAN. THAT'S TO ME WHAT A PRIORITY IS. IS IT SOMETHING MORE TANGIBLE? UH, OTHERWISE, AS I SAID, AND VALUE, I THINK USED THAT IN THE WAY I WAS USING LENS. UM, MELISSA, SO I, YOU KNOW, I THINK SORT OF THE SAME WAY, BUT I DON'T, I DON'T SEE IF WE KNOW THAT WE HAVE MOBILITY, TRANSPORTATION AS A PRIORITY. WE KNOW THAT THESE THINGS HAVE TO HAPPEN, BUT WE HAVEN'T DEFINED THOSE THINGS THAT WOULD'VE TO HAPPEN IN TERMS OF WHAT WE WANT, THE STEPS WE WANNA TAKE. ARE YOU TALKING ABOUT SETTING UP A NEW DEPARTMENT THEN THAT FOCUSES ON THIS? ARE YOU TALKING ABOUT, I MEAN, BUT THAT'S, IN ORDER TO GET ON THE PRIORITY LIST, THOSE ARE THE QUESTIONS THAT NEED TO BE ANSWERED AS WE WERE DISCUSSING THINGS TO BE IN SYNC WITH HOW WE LOOKED AT THINGS YESTERDAY. OTHERWISE WE'RE JUST CHANGING THE GAME NOW MIDSTREAM ABOUT HOW WE, HOW WE WANT TO, YOU KNOW, WHAT DEFINITIONS OR STANDARDS WE WANT TO USE IN ESTABLISHING THESE THINGS. IT'S AN OPINION TO THOSE OF YOU SHAKING YOUR HEADS, , I'LL ANSWER BY ASKING A QUESTION OF ANNETTE, WHAT'S THE REAL DIFFERENCE WHETHER THIS IS THE PRIORITY THREE VERSUS SOMETHING THAT'S GONNA GET WORKED ON? I MEAN, WHAT WE MAY GET UPDATES ON IT FOR, UH, COUNCIL MEETINGS MORE FREQUENTLY, BUT IN PRACTICALITY, WHAT'S GONNA BE DIFFERENT? I THINK PART OF IT IS LIKE, HOW BIG DO YOU WANNA GO? LIKE WHAT'S YOUR LEVEL OF INTEREST IF IT'S JUST SUPPORTING OUR SMALL BUSINESSES AND ENTREPRENEURS AND ALL OF THAT. AND UM, YOU KNOW, WE COULD, LIKE THE LEADERSHIP TEAM IS DOING TODAY, THEY'RE DIVING INTO LIKE THE, UM, HOW DO WE DO THIS ON THOSE OTHER PRIORITIES, RIGHT? AND SO IF WE KNOW WHAT THE, WHAT IS THAT OR THE WHY YOU WANNA DO SOMETHING LIKE THIS, WE CAN COME BACK WITH A HOW. UM, SO I GUESS IT'S JUST HOW MUCH, HOW MUCH THE COUNCIL WANTS THIS TO BE FRONT AND CENTER WILL TELL US HOW MUCH WE NEED TO MAKE IT A BIG PACKAGE VERSUS, YOU KNOW, THE VALUE OR THE LENS COMPONENT. UM, WELL IT'S NOT MATURE, SO WE DON'T KNOW THE ANSWERS TO THOSE QUESTIONS. WE'RE JUST TALKING ABOUT IT NOW REALLY FOR THE FIRST TIME. SO IF WE ASKED STAFF TO COME BACK AND PROPO, YOU KNOW, PROPOSE TO US WHAT YOU THINK IS REALISTIC TO DO IN THIS YEAR, GET US STARTED, THEN WE COULD REACT TO IT. I DO THINK IT IS INTERESTING TO LOOK AT THE DATA THAT WE'VE SEEN AND WHATEVER ADDITIONAL REFINEMENTS, YOU KNOW, IS THIS THE TRAJECTORY FOR A LONG TIME? ARE WE GONNA, MAYBE IT'S ONE OF THOSE KINDS OF SCENARIO QUESTIONS WHERE, WHAT HAPPENS IF THIS KEEPS DROPPING, YOU KNOW, ON THE RETAIL SIDE FOR TWO MORE YEARS OR SOMETHING. OR IS IT JUST A BLIP IT'S GONNA COME BACK. OKAY. UM, I MEAN WE NEED TO DO MORE THINKING. YEAH. AND I THINK THAT'S, THAT'S TOTALLY FINE. HARD TO SAY WHAT WE WOULD DO JUST OFF THE TOP OF OUR HEADS IN THIS MOMENT. BUT UNDERSTANDING THE PRESSURES ON OUR BUSINESS COMMUNITY AND WHAT, UM, IF ANYTHING THE CITY CAN DO ABOUT THAT I THINK IS IMPORTANT, IS A VALID THING TO DO. I WAS MINDFUL OF ANDREW'S COMMENT. I THINK IT WAS YOUR COMMENT OR COULD HAVE BEEN STERLING, BUT ONE OF THE, UH, THIS MORNING ABOUT INTERNATIONAL TRAVEL WAS YOURS, RIGHT? THAT IT'S NOW IN, IN 20, UH, 29. INTERESTING. THAT DATE THEY HAVE WRITTEN OFF THIS ADMINISTRATION, RIGHT? BASICALLY. I KNOW THAT WOULD BE MY TAKEAWAY FROM THAT. I MEAN, AGAIN, I THINK THAT IS AN UPDATED PROJECTION FROM THE IMPACTS THAT HAPPENED DURING COVID. UM, BUT YOU KNOW, AGAIN, THERE'S ALWAYS A PIZZA PIE. AND YOU KNOW, I THINK JUST ONE ANECDOTE, AND AGAIN, I DON'T LIKE ANECDOTES, BUT IT'S RELEVANT TO THIS WHERE AGAIN, WE HAD SOME GERMAN TRAVEL AGENTS HERE AND A LOT OF THEIR GUESTS, THAT WAS ONE OF THE, WE SELL THE WORLD AGENTS I MENTIONED EARLIER. UM, THEY'RE LIKE, WE'LL COME BACK IN THREE YEARS. SO ANECDOTALLY I AM HEARING THAT FROM, FROM TRAVEL AGENTS, BUT THAT'S NOT I THINK ENOUGH OF A SAMPLE SIZE TO SAY TO SAY OTHERWISE. BUT IN THAT CHART IT KIND OF DIPS AND IT KIND OF COMES BACK UP SLOWLY. AND WE WERE [03:35:01] WAITING FOR IT TO COME BACK UP AFTER COVID, THEN WE SAW WHAT HAPPENED THIS YEAR AND NOW THEY'VE READJUSTED. BUT AGAIN, I MEAN WHAT'S WILD WITH A LOT OF THIS IS THAT, YOU KNOW, IT COULD CHANGE TO STERLING'S POINT. GEOPOLITICAL COULD CHANGE THINGS IMMEDIATELY. UM, YEAH. FOR THE BETTER OR FOR THE WORSE. DEFINITELY. DO YOU HAVE ENOUGH DIRECTION? DO WE HAVE A ENOUGH OF A CONSENSUS? I MEAN WE'VE GOT A FOUR TWO, SO WE HAVE A MAJORITY. I'M JUST GONNA SAY THAT THERE ARE THINGS THAT WE COULD BE DOING, WE DON'T HAVE ANSWERS YET. LIKE WE DON'T KNOW WHAT IT IS WE WOULD NEED. WE HAVE A, A THOUGHT THAT WE HAVE TO FIX BROADBAND. UM, BUT WE DON'T KNOW WHAT ARE ALL THE THINGS WE NEED TO DO INFRASTRUCTURALLY, WE ALSO DON'T KNOW WHAT ARE ALL THE THINGS WE WOULD HAVE TO DO SORT OF AS A COMMUNITY, WHICH COULD BE ABOUT BETTER SCHOOLS. IT COULD BE ABOUT THE FACT WE DON'T HAVE SUPPORT FOR FAMILIES HERE, REALLY DAYCARE CENTERS AND BEFORE AND AFTER SCHOOL CARE AND WHATEVER IT MIGHT BE. BUT WE HAVE GROUPS THAT WE CAN GO AND SPEAK TO. WE CAN TALK TO XYZ.ORG, RIGHT? UM, THAT'S, SOME OF THOSE PEOPLE ARE IN THAT GROUP. WE CAN, WE KNOW, WE KNOW WE'VE BEEN CONTACTED BY PEOPLE WHO ARE MOVING INTO THE COMMUNITY, WHO ARE ENTREPRENEURS AND WANT TO BE HERE AND THEY WANT TO BRING OTHER PEOPLE HERE. AND THERE ISN'T ANY REASON FOR US NOT TO GO AND JUST SPEAK TO THEM. I THINK WE DON'T HAVE ENOUGH INFORMATION TO THE POINT, BUT IT ALSO TAKES ENERGY. IT TAKES SOMEONE ON STAFF BEING ABLE TO DO THAT, THAT WORK. AND I DON'T WANNA BE DISMISSIVE OF THE FACT THAT WE'RE ASKING SOMEONE TO ACTUALLY START THIS PROCESS, WHICH IS ALWAYS HARDER THAN ONCE YOU'VE GOT IT MOVING. MM-HMM . SO IF I COULD ADD JUST A COMMENT THAT MIGHT HELP YOU, YOU KNOW, COME TO A DECISION ON THIS, YOU KNOW, TOMORROW I'M GONNA BE ASKING YOU WHO WANTS TO BE THE COUNCIL CHAMPION OF THIS PRIORITY, OR WHICH COUNSELORS, YOU KNOW, THERE COULD BE MORE THAN ONE. UM, SO DO YOU SEE YOURSELF AS A COUNCIL CHAMPION? COULD YOU BE A CHAMPION FOR A TOPIC THAT'S A LITTLE BIT AMORPHOUS LIKE THIS, THAT WE WOULD HAVE A STAFF CHAMPION A COUNCIL? THIS IS, YOU KNOW, MY MODEL VISION FROM YESTERDAY WAS THAT, UM, IN THE END, WE'RE GONNA HAVE THESE KEY PRIORITIES AND THAT MEANS LASER FOCUS, STAFF FOCUS, THAT TYPE OF THING, RIGHT? TO DRIVE IT FORWARD. SO I'M HOPING I GET A COUNCIL CHAMPION. I CAN ASSIGN A STAFF CHAMPION AND THAT WE FIND A COMMUNITY CHAMPION THAT WE'RE GONNA WORK TOGETHER TO DRIVE THESE FORWARD. UM, AND DO YOU SEE THAT APPLYING TO THIS TOPIC AT THIS POINT? OR IS IT LIKE SOMEBODY SAID NOT RIGHT YET, WE NEED TO KEEP MONITORING IT OR COMING UP WITH SOMETHING AND SHOULD I COME BACK TOMORROW WHEN WE DO OUR WRAP UP WITH SOME IDEA AROUND WHAT THAT COULD LOOK LIKE FOR THIS TOPIC? 'CAUSE THAT'S WHAT WE'RE GONNA DO WITH THE OTHER ONES. UM, SO JUST THROW THAT OUT THERE. THAT'S PART OF THE COMMITMENT WHEN IT BECOMES A PRIORITY. I HOPE. I'M JUST GONNA BRING UP THE SCHOOLS SINCE YOU, YOU MENTIONED THAT THE, I MEAN THE WAY THE GRANTS WORK WITH THE SCHOOLS AND WITH THE STATE, THERE ARE CONSTANTLY BEFORE AND AFTER SCHOOL PROGRAMS THAT ARE ON THE CHOPPING BLOCK. UM, I DON'T KNOW TO WHAT EXTENT THE CITY CAN SUPPORT THE SCHOOL DISTRICT WITH SOME OF THESE THINGS, BUT I MEAN, THERE'S A LOT OF STUFF THEY COULD DO WITH A LITTLE BIT OF HELP. YOU'RE FUNDING THE DIRECTOR. OKAY. BUT I MEAN, WE OUGHT BE LOOKING AT AN EVEN, YOU KNOW, CHARTER. I DON'T KNOW IF THERE ARE THINGS THAT CHARTER COULD BE DOING IF, IF THERE WERE MORE SUPPORT. BUT I MEAN, THERE'S A LOT OF STUFF THAT, YOU KNOW, COMPARED TO THE SCHOOL DISTRICT. THE CITY HAS REALLY DEEP POCKETS. UM, AND I HEAR SOME OF THE THINGS THAT, YOU KNOW, THE CITY, OR I'M SORRY, THE SCHOOL DISTRICT IS LIKE, WELL WE CAN'T DO THAT BECAUSE WE DON'T HAVE $25,000 AND I'M LIKE YOU, SO WE OUGHT TO BE TALKING TO THEM. CAN YOU GIVE AN EXAMPLE? I NOT OFF THE TOP OF MY HEAD, BUT THERE'S JUST A, IT'S A LOT OF, BECAUSE I WOULD BE THINKING THAT IF, IF IT WAS SOME SORT OF A INSTRUCTOR ISSUE, LIKE SCHOOL DISTRICT, WE CAN'T, UM, WE CAN'T MAINTAIN A FIELD, RIGHT? IS VERY DIFFERENT FROM FUNDING FOR WHATEVER. BECAUSE I MEAN, IF THAT'S SOMETHING THAT WAS OPEN TO RESIDENTS. 'CAUSE AREN'T WE GETTING INTO SOME GIFT CLAUSE ISSUES WITH, WITH SOME THIS? I MEAN, YOU'VE SPOKEN TO THAT BEFORE, KURT, WOULD YOU GIVE US SOME CONTEXT HERE? NO PROBLEM. OKAY, THERE WE GO. , THERE'S, THERE'S MORE FLEXIBILITY WITH, UH, FELLOW AGENTS LIKE GOVERNMENT AGENCIES THROUGH IGAS, UM, AND WHATNOT. SO, UH, BUT YES, YOU COULD END UP IN, IN GIFT CLAUSE ISSUES EVENTUALLY, BUT IF IT WAS LIKE A [03:40:01] FIELD OR CERTAIN PROGRAMS, I THINK THERE'S OPPORTUNITIES FOR PARTNERSHIP. MOST OF WHAT I'M TALKING ABOUT IS PROGRAMMATIC, NOT STRUCTURE, JUST PROGRAMS. SO WOULD WE BE ABLE PUT PROGRAMMATIC, I THINK IS WHERE WE WERE TALKING ABOUT GETTING INTO TROUBLE LIKE THAT, RIGHT? THAT WE WOULDN'T BE ABLE TO SAY, OKAY, WE'RE GONNA HOST THE AFTERSCHOOL PROGRAM OR WE'RE GOING TO, YOU KNOW, I MEAN IT WOULD HAVE TO BE SOMETHING THAT THE CITY TOOK ON AS THE CITIES. IT WOULD NOT BE PART OF THE SCHOOL DISTRICTS. IS THAT RIGHT KURT? THAT'S ONE POSSIBILITY. IT DEPENDS ON THE PROGRAM AND IT DEPENDS ON THE, THE, THE DIRECT BENEFITS THAT WOULD COME BACK TO THE CITY FROM, UH, FROM DOING THAT PROGRAM. OKAY. I'D LIKE TO MENTION THAT MY ROTARY CLUB RAISED A HUNDRED THOUSAND DOLLARS TO GIVE TO THE SCHOOL DISTRICT FOR THE BEFORE AND AFTER PROGRAM. AND SO IT'S FUNDED FOR THIS YEAR. BUT LET'S GO BACK TO ANNETTE'S, UH, ASKING US A QUESTION ABOUT CAN YOU SEE THIS ECONOMIC DEVELOPMENT, DIVERSITY, THE ECONOMY BEING ONE OF THOSE PROGRAMS WHERE WE HAVE A CHAMPION AND WHERE THEY BRING US BACK. OKAY, SO LET'S, 'CAUSE THAT REALLY, THAT'LL CLOSE OUT THIS SESSION. SO LET'S DO A THUMB UP, THUMB DOWN CHAMPION OR THAT WE WOULD BRING BACK YOURSELF IN ROLE. I SEE YOURSELF IN ROLE. NO, IT'S A PROGRAM. ANNETTE ASKED US TO GIVE HER FEEDBACK AS TO, I KNOW YOU DON'T SUPPORT THIS, BUT NO, NO, NO. I'M TRYING TO UNDERSTAND THE QUESTION. YOU WANT THE QUESTION IS, UM, ON THE OTHER PRIORITIES IDENTIFIED YESTERDAY, STAFF'S WORKING TODAY ON BRINGING BACK THE HOW, YOU KNOW WE'RE GONNA DO IT AND AT THE END OF TOMORROW, I'M GONNA BE ASKING, AFTER YOU RECEIVE ALL THAT INFORMATION, WHICH COUNCIL OR COUNSELOR OR COUNSELORS WANT TO BE THE CHAMPION FOR THAT PARTICULAR ITEM THAT'S GONNA WORK DIRECTLY WITH THE STAFF CHAMPION THE COMMUNITY CHAMPION TO DRIVE IT FORWARD. AND GIVEN THAT, CAN YOU SEE THIS TOPIC FITTING THAT MODEL, YOU KNOW, WOULD IT BE OF INTEREST THAT LIKE SOMEONE REALLY WANTS TO BE THE CHAMPION THAT WE WOULD AND IF SO, THEN WE WOULD COME BACK TOMORROW WITH SOME IDEA OF HOW OR WHAT THIS COULD LOOK LIKE. UM, AND IF NOT, IF YOU DON'T SEE IT AS READY FOR SOMETHING LIKE THAT YET, THEN IT COULD BE, YOU KNOW, AT THE LOWER LEVEL OPERATIONAL SIDE THAT WE START, YOU KNOW, GATHERING MORE OR I DON'T KNOW WHAT THAT WOULD BE. BUT LIKE TONY AND UM, ANDREW AND I AND WHOEVER ELSE ON THE STAFF WITH ACCESS TO INFORMATION ON THIS TOPIC, TALKING TO OUR REGIONAL PARTNERS IN THE CHAMBER, WE COULD OVER TIME WORK UP SOMETHING TO BRING BACK LATER. BUT IF IT'S REALLY STRONGLY THOUGHT THAT NO, THIS IS A MOMENT IN TIME WHERE WE NEED TO ELEVATE IT TO A VERY LIKE, UM, FOCUSED, INTENTIONAL, HIGH LEVEL, UM, UM, ACTION ITEM THAT WE NEED TO WORK ON AT MORE OF A, UH, PUBLIC LEVEL, THEN THAT WOULD BE WHAT I WOULD NEED TO KNOW. SO WE CAN BRING YOU BACK SOMETHING TOMORROW. OKAY. SO THE, I GUESS THAT WAS KIND OF, EVERYONE UNDERSTAND THE QUESTION ? SO THUMBS UP? YES. YOU WANT IT TO RAISE TO A HIGHER LEVEL? OKAY, THUMBS DOWN. YOU DON'T, OKAY. FOUR TWO. SO, SO THE TWO ARE, UM, COUNSELOR ARE VICE MAYOR FOLTZ AND COUNSELOR KINSELLA. OKAY. YES. AND THEN THE FOLLOW UP QUESTION IS ARE YOU GOOD WITH FOUR PRIORITIES? DOES THAT NOT, LIKE, YOU DON'T WANNA REVISIT THE MOBILITY ONE, UM, THE MAYOR THROUGHOUT, YOU KNOW, IT'S OKAY TO HAVE FOUR INSTEAD OF THREE, BUT JUST WANNA DOUBLE CHECK THAT YOU ARE SO MUCH LESS . IT, IT, JUST TO BE CLEAR, I'M, I'M VOTING ON, ON THE SIDE TO SAY YES, BUT IF STAFF DOESN'T COME BACK TOMORROW WITH A LOT AND IT'S REALLY, WE REALLY NEED TO SPEND MORE TIME THINKING ABOUT IT AT THE OPERATIONAL LEVEL FOR THE NEXT YEAR, I'M GOOD WITH THAT. RIGHT? I MEAN IT'S, BUT THE, THE MESSAGING OF UH, ECONOMIC DEVELOPMENT, ECONOMIC DIVERSITY AS A PRIORITY OF COUNCIL IS A GOOD MESSAGE AND THAT'S, I'M VERY SUPPORTIVE. THAT, THANK YOU. OKAY. UM, JUST ON A, AN AGENDA CHECK. I THINK I SAW LUNCH ARRIVE FOR EVERYBODY. WOULD YOU LIKE TO TAKE A BREAK, [03:45:01] EAT, LUNCH, RECONVENE, AND YOU COULD DO SOME OF THE ITEMS THAT WE HAD SET UP FOR TOMORROW AND THEN BE DONE FOR THE DAY, WHICH WOULD BE, I WOULD SUGGEST YOUR COUNCIL LIAISON ASSIGNMENTS? IT WOULD BE AN EASY ONE TO DO. NOW. UM, THE SCHEDULE HAS, KATHY SENDS HIM IN SPECIFICALLY TOMORROW AT 10 30 AND THAT'S WHAT SHE'S PLANNING ON, SO WE WOULDN'T BE ABLE TO MOVE HER. ANY OF THEM ARE HOT. ONE POINT ON THAT COUNSEL, THE, THOSE ITEMS WERE AGENDIZED FOR ACTION FOR TOMORROW. SO I HAVE NO ISSUE FULLY DISCUSSING THOSE. UH, BUT IF WE WOULD HOLD OFF ON THE FINAL VOTE ON THOSE FOR TOMORROW. BUT YOU CAN PICK, MOVE ANY OF THOSE THAT ARE AGENDIZED FOR TOMORROW FOR ACTION, FORWARD TO TODAY, DISCUSS, UM, AND GET, YOU KNOW, GET, YOU KNOW, FLESH IT OUT, GET TO WHEREVER YOU'D LIKE TO, BUT WE COULD TAKE THE FINAL VOTE TOMORROW WOULD BE BEST. OKAY. DOES THAT INCLUDE COUNCIL ASSIGNMENTS? YEAH. YEAH, COUNCIL ASSIGNMENTS WAS LISTED FOR TOMORROW. UH, WHAT ABOUT COUNCIL ASSIGNMENTS AND ADDING HOPE HOUSE AND VERDE VALLEY CARE, WHATEVER YOU WANNA DO. TAKE THAT ITEM WE TALK ABOUT. CAN YOU TALK ABOUT, WE JUST CAN GO, YEP. RIGHT. SO ITEMS AND MAYBE ESTABLISHMENT OF THE COUNCIL SUBCOMMITTEE WRITING PERFORMANCE, AND, AND THEN YES, PLEASE. I WOULD PUT OFF THE WESTERN GATEWAY MASTER PLAN BECAUSE PATRICK'S PLAN TO BE HERE TOMORROW. AND A IF, IF SHE PROVIDED ANYTHING FURTHER THERE ON HER BEHALF. SHE SAID AN EMAIL. OH, SHE DID SEND SOMETHING. WELL, DO YOU WANT TO TAKE A BREAK? HAVE LUNCH. OKAY. AND HOW LONG WOULD YOU LIKE? YEAH, OKAY. DO YOU NEED TO SAY WE'RE RECESS OR ANYTHING? HOW LONG BREAK, JUST IN CASE? 30 MINUTES. IT'S ON MINUTES. I DON'T THINK WE HAVE TO RECESS, BUT WE'RE ON BREAK FOR 30 MINUTES. OKAY. WHATEVER THE ROOMS. OKAY, WE'RE BACK IN SESSION. AND WHAT ITEM WOULD YOU LIKE TO TALK ABOUT? ANNETTE? WELL, UM, EXCUSE ME. THANK YOU MADAM MAYOR. UM, SO ON YOUR AGENDA FOR DAY THREE, AND I WAS JUST ABOUT TO PULL UP THE ONLINE PACKET SO I COULD REFER TO THE PACKET PAGE NUMBER, WHICH I'LL GET IN A SECOND UNLESS, UH, JOANNE OR KURT HAVE IT UP ALREADY. UM, YOU HAVE A NUMBER OF ITEMS AGENDAS TOMORROW STARTING AT ONE O'CLOCK THAT TALKS ABOUT, UM, UH, A LIST OF SUGGESTIONS THAT WERE SENT TO ME BY COUNSEL AND PLANNING FOR THE RETREAT. AND SO, UM, AS YOU DISCUSSED RIGHT BEFORE YOUR BREAK FOR LUNCH, IT SOUNDS LIKE YOU WOULD LIKE TO START WITH ITEM NUMBER THREE ON THAT LIST. AND THAT IS A PROPOSAL THAT WAS SENT IN TO ME BY COUNSELOR DUNN. SO IF YOU CAN JUST GIVE ME A MINUTE TO GET TO THE PACKET AND THEN WE CAN ITEM ONE AS WELL, WE CAN DO IT THAT ORDER. UH, THE COUNCIL CHAMPIONS, WHICH ONE ARE YOU REFERRING TO? ASSIGN, OH, THAT'S NUMBER 11. IF YOU WANNA START WITH THAT ONE, THAT'S TOTALLY FINE. UP TO YOU. IT'S YOUR, YOUR RETREAT. SO, UM, YEAH, SO THE COUNCIL CHAMPION ASSIGNMENTS THAT ITEM ONE AT ONE O'CLOCK, THAT'S REALLY GONNA BE THE CLOSEOUT OF THE PRIORITIES DISCUSSION AND KIND OF THE FINAL. AND AS, UM, KURT CHRISTENSEN ADVISED YOU AGAIN BEFORE THE LUNCH BREAK, WE CAN TALK ABOUT ALL THESE THINGS, BUT YOU'LL TAKE YOUR OFFICIAL ACTION IF THERE IS ONE. UM, TOMORROW, IS IT COUNCIL ASSIGNMENTS? ANNETTE? OH NO, WE'RE GONNA START WITH THREE. SO WHAT, UM, WELL IT'S EITHER, I MEAN, WHEREVER COUNCIL WANTS TO START, WE COULD START WITH ITEM THREE, WHICH IS ADDING HOPE HOUSE AND VERDE VALE. OKAY. OOPS, THAT SHOULD, I'M SORRY, THAT'S A TYPO. I THOUGHT I GOT THAT FIXED. UM, IT'S ADDING HOPE HOUSE AND SEDONA FOOD BANK TO THE LIST OF COMMUNITY SERVICE PROVIDER CONTRACTS. YOU COULD START WITH THAT ONE AND START GOING DOWN THE LIST AND END WITH THE COUNCIL LIAISON ASSIGNMENTS. OR YOU COULD START WITH COUNCIL LIAISON ASSIGNMENTS. IT DOESN'T MATTER. OKAY. UM, I THINK THE OFFICIAL AGENDA THAT'S IN THE PACKET IS CORRECT AND SAYS [03:50:02] THINK OKAY, IT'S MY PERSONAL MEDS THAT I'M WRONG. IT'S, SO THAT'S PACKET PAGE THREE FOR THE ITEMS. OKAY. IT'S IN YOUR MEMO, RIGHT? YES, IT'S MEMO. OKAY, THAT'S PACKET PAGE THREE. IT STARTS, OKAY, SORRY, ONE SECOND. YEAH, SO, UM, THE WHOLE ACTUALLY HAVE, WOULD YOU LIKE TO DELAY IT? YEAH. BECAUSE HOPE HOUSE WAS PLANNING ON HAVING SOMEBODY HERE TOMORROW, PART OF THE BOARD PLUS, UM, SO THEY WERE PLANNING ON BEING HERE JUST LIKE PATRICK DIDN'T SAY WHETHER OR NOT THEY WERE PROVIDED. OKAY. SO THIS SAYS MY QUESTION, BOTH HOUSE AND CAREGIVERS IS WRONG. IT'S, IT'S A, IT'S RIGHT IN THE MEMO, IT'S JUST CORRECT. YEAH. MY, MY MY MISTAKE, THEY ALREADY, I BELIEVE THE, SO THE EARLY VERSION OF THIS DOCUMENT, I EMAILED TO YOU HOW A TYPO IN IT, BUT THE VERSION THAT'S ON THE WEBSITE IS CORRECT. RIGHT. OKAY. SO WHAT I'M HEARING IS, UH, WAIT FOR THAT ONE TILL TOMORROW AS WE ARE WITH THE WESTERN GATEWAY MASTERMIND OR QUESTION. OH GOSH, SORRY. SO MY QUESTION, UH, MELISSA, WOULD YOU BE OPEN TO US DISCUSSING TODAY WHETHER, WHETHER COUNSEL HAS APPETITE TO GO DOWN THIS PATH IRRESPECTIVE OF TO WHOM WE MIGHT ENTER INTO THESE AGREEMENTS WITH? 'CAUSE IT'S LIKE WHAT I BELIEVE YOU'RE PROPOSING IS, IS ESSENTIALLY, HEY, LET, LET'S GET OFF THE TRACK WE'VE BEEN ON AS WE'VE BEEN TALKING ABOUT A HOMELESSNESS STRATEGY. AND THAT IN AND OF ITSELF IS, YOU KNOW, AN IMPORTANT DISCUSSION. AND I THINK, YOU KNOW, YOU'RE SAYING, HEY, INSTEAD OF THE VOLUME, YOU KNOW, HERE'S WHAT YOU CAN GET, YOU KNOW, BEHIND DOOR NUMBER THREE FOR $11 MILLION. YOU KNOW, HERE'S WHAT I THINK SEDONA COULD DO. AND YOU'RE BEING VERY SPECIFIC AND THERE'S NOTHING WRONG WITH THAT. I'M JUST ASKING, I MEAN, IN THIS CONVERSATION IT COULD BE TOMORROW. I JUST THINK WE SHOULD TALK ABOUT, YOU KNOW, DO WE WANT TO GO DOWN THAT ROUTE OF DIVERGING OFF OF THE PATH WE'VE BEEN ON? IS THAT MICROPHONE? OKAY. SO, UM, I SUPPOSE IF WE WANTED TO TALK GENERALLY ABOUT, UM, I'M NOT SURE WHICH TOPIC YOU WANTED TO TALK ABOUT. 'CAUSE THERE'S TWO THAT YOU JUST MENTIONED, RIGHT? SO ONE OF THEM IS DO WE WANNA ADD ANY ADDITIONAL CONTRACT SERVICE PROVIDERS? THAT WAS ONE. AND THE SECOND ONE, WHICH IS SORT OF LIKE, NO, WE DON'T WANT TO ADD ANYONE, SO IT DOESN'T REALLY MATTER. OR, UM, UH, DO WE, DO WE AGREE OR DO WE THINK THAT THIS IS ONE DIRECTION THAT WE SHOULD CONSIDER GOING DOWN, WHICH IS ALLOWING THIS TO REPRESENT WHAT WE WOULD DO AS FAR AS HOMELESSNESS IS CONCERNED INSTEAD OF ALL OF THE OTHER OPTIONS THAT WERE ON THE BOARD? I'M SPEAKING TO YOUR LATTER POINT YOU JUST MADE, AND MY ASSUMPTION IS, IS THAT, THAT THAT, THAT YOU ARE IN FACT MAKING THIS PROPOSAL AS A ALTERNATIVE TO WHAT HAS BEEN PRESENTED TO US MOST RECENTLY AS THE VARIOUS OPTIONS. UH, WE HAVE TO, TO PURSUE STRATEGIES ADDRESSING HOMELESSNESS. I AM NOT SURE THAT I WOULD SAY IT'S AN ALTERNATIVE. I'M JUST SAYING THAT THESE ARE TWO OF THE ITEMS THAT WERE IN THAT LIST, RIGHT? BASIC SERVICE PROVIDERS THAT WOULD BE THE FOOD BANK AND, UM, CRISIS CARE AND THAT'S HOPE HOUSE. SO ALL I AM ARGUING HERE IS WE ALREADY HAVE THESE FACILITIES, THEY'RE WELL ESTABLISHED IN THE COMMUNITY. WE KNOW WHAT THEY DO AND HOW THEY DO IT. UM, AND IF WE WANTED TO PUT FORWARD THAT, THAT WE ALREADY HAVE SOME OF THESE GOING AND WE WOULD LIKE TO SUPPORT THEM IN A WAY THAT SAYS THIS IS PART OF OUR CONTRIBUTION AS A, AS A MEMBER OF THE VERDE VALLEY TO ALL OF THE OTHER THINGS THAT ARE OUT THERE. LIKE THEY TALKED ABOUT THE FUND, YOU KNOW, YOU COULD, YES, WE COULD PUT MONEY IN A FUND, UM, BUT FOR WHAT AND WHY AND WHO, BECAUSE NONE [03:55:01] OF THAT IS UNDERSTOOD OR DISCUSSED SORT OF ACROSS THE BROADER VALLEY. THE SFU BANK SERVES THE BROADER VALLEY, UM, JUST LIKE VERDE VALLEY CAREGIVERS DOES. AND, YOU KNOW, UH, THEIR BASIC SERVICE PROVIDER AND HOPE HOUSE HAS MADE IT VERY CLEAR THAT THEY DON'T ALLOW ANYONE EXCEPT SEDONAS TO COME INTO CRISIS CARE THERE. SO THEY'RE NOT TRYING TO ATTRACT PEOPLE AND THEY WILL NOT ATTRACT PEOPLE FROM AROUND THE COUNTRY, UM, OR WHEREVER TO COME HERE. SO THEY CAN HAVE, AND THEY'LL HAVE SHELTER BECAUSE THEY WON'T, UM, THAT'S THEIR POLICY. SO YES, IT WAS PROPOSED IN THE, IN THE SPIRIT OF HOMELESSNESS AND HOW WE COULD GET ON THAT WAGON AND MAYBE START THE MOVEMENT ACROSS THE VALLEY AROUND HOW WE'RE GOING TO, TO PARTICIPATE. THE, YOUR REASON FOR IDENTIFYING THESE TWO ORGANIZATIONS, WAS THAT BECAUSE THEY HAD APPROACHED YOU OR WAS THAT YOU THOUGHT OF IT AND APPROACHED THEM? UM, I NEED LONGER FINGERNAILS. UM, SO, UH, I APPROACHED THEM AFTER I HAD THOUGHT THIS THROUGH TO SAY, THESE ARE THINGS THAT WE CAN CONTRIBUTE AS A CITY AND I DON'T KNOW HOW MUCH TOLERANCE THERE IS IN THE COMMUNITY TO CONTRIBUTE MORE. AND THEY'RE ALREADY HERE AND THEY'RE ALREADY ESTABLISHED. SO I APPROACHED THEM, THEY DID NOT APPROACH ME AND SAY, HEY, WE'RE THE SOLUTION TO YOUR HOMELESSNESS CONTRIBUTION. I, I'D BE WILLING TO HAVE THE DISCUSSION IF YOU ABOUT, DO WE WANT TO EXPAND THE SERVICE PROVIDER CONTRACT PROGRAM? YES. I'D LIKE TO KEEP AT, AT FIRST I'D LIKE TO KEEP IT TO THAT, UM, NARROW DISCUSSION. I'M SORRY, CLARIFY QUESTION. DO ANY OF THESE ORGANIZATIONS CURRENTLY RECEIVE SMALL GRANT DOLLARS AND IS IT THEY HAVE IN THE PAST? I DUNNO IF THEY I DON'T THINK SO SINCE, I DUNNO WHO BANK CURRENTLY DOES AT ALL. AND I KNOW HEALTH PUMP SUPPLIED IT AND THEY WERE DENIED BECAUSE THEY DIDN'T HAVE THEIR APPLICATION. CORRECT. UM, WELL, NOT SO MUCH THAT THEY DIDN'T HAVE THEIR APPLICATION CORRECT. WHAT THEY APPLIED TO SPEND THE MONEY ON WAS AN INELIGIBLE ITEM, EX ITEM THAT THE GRANT DOES NOT COVER, UM, IN THAT. AND SO THE, UH, DIRECTOR OF THE HOPE HOUSE TOLD US SHE PLANNED TO RESUBMIT IN THE NEXT CYCLE, UM, AND UNDERSTOOD THE CRITERIA BETTER AFTER MEETING WITH THE SMALL GRANT COMMITTEE WHO WE'RE ALL VERY SUPPORTIVE OF THE ORGANIZATION ITSELF AND THE WORK THAT THEY DO. IT WAS JUST THE TECHNICALITY. UM, AND, AND SO IS THIS IDEA A SUBSTITUTE? THEN THEY DON'T GO THROUGH THAT PROCESS. IT'S JUST NOW MAKES IT MORE OF A SERVICE BANK WAS GETTING 15,000 SEDONA C FOOD BANK. COULD YOU REPEAT THAT? 15,000 SEDONA COMMUNITY FOOD BANK IS A SMALL GRANT LAST YEAR AND HOPE HOUSE APPLIED FOR 19,000 8 23 AND WAS AWARD. SO THERE WOULD NO LONGER BE ELIGIBLE. RIGHT. FOR SMALL GRANTS OR ANY KIND OF GRANT PROGRAM FOR US, IF THEY'RE A SERVICE PROVIDER, NO DOUBLE DIPPING. AND IS THAT PART OF OUR RULE SET FOR THE GRANT PROGRAM? YEAH. MM-HMM . GREAT. AND IF I MAY, UH, MADAM MAYOR, UH, THE CURRENT THREE YEAR CONTRACTS FOR THE EXISTING, UM, COMMUNITY SERVICE PROVIDERS, WHICH THERE'S FIVE, UM, THOSE EXPIRE IN JUNE OF 26, AND BARBARA AND HER TEAM ARE IN THE PROCESS OF RENEGOTIATING THOSE. SO IF THIS IS OF INTEREST TO THE MAJORITY OF THE COUNCIL, UM, THEY WOULD, YOU KNOW, REACH OUT AND TRY TO NEGOTIATE SOME KIND OF, UH, YOU KNOW, WHAT, WHAT THE SERVICE DELIVERY WOULD BE THAT, THAT THE CITY WOULD BE PAYING FOR AND ALL THE KINDS OF DETAILS THAT NEED TO BE IN THAT TYPE OF CONTRACT. YEAH. THE PROCESS, UH, PART OF THAT PROCESS IS THEY MAKE PRESENTATIONS TO THE CITIZENS OF BUDGET WORK GROUP, WHICH THEN MAKES RECOMMENDATIONS TO ANNETTE AND TO COUNCIL FOR THE FUNDING LEVEL FOR THE ORGANIZATIONS. THE OTHER THING I WANTED TO MENTION IS THAT WHEN THE SERVICE CONTRACTS WERE CONCEIVED, THE IDEA WAS THAT, AND WHY THEY WERE SEPARATE FROM SMALL GRANTS WAS THAT THEY PERFORM A SERVICE THAT OTHERWISE THE CITY WOULD HAVE TO PROVIDE. SO THE HUMANE SOCIETY AS AN EXAMPLE, THAT IS A REQUIREMENT TO [04:00:01] PICK UP THESE STRAY DOGS. WE'D EITHER HAVE TO DO THAT OURSELVES OR WE COULD CONTRACT IT OUT, BUT IT WOULD HAVE TO BE SOMETHING THAT WAS ACHIEVED. AND, UH, AND SO THAT WAS KIND OF A GENERAL RULE OF THUMB. SO THIS IS WHERE I BEG TO DIFFER. UM, RECYCLING CENTERS ARE NOT ALWAYS PROVIDED BY, UH, LOCAL COMMUNITIES, OR THEY COULD BE PROVIDED BY A COUNTY OR NOT PROVIDED AT ALL OR PRIVATELY HELD. UM, THE VERDE VALLEY CAREGIVERS, THEY DO AN AMAZING THING, BUT MOST, MOST CITIES DO NOT PROVIDE TRANSPORTATION TO THEIR ELDERLY OR SUPPORT IN THE WAY THAT THE VERDE VALLEY CAREGIVERS DO. SO I'M NOT TRYING TO, I'M NOT TRYING TO SAY NEGATIVE THINGS ABOUT THEM. I'M SAYING THAT CITIES DON'T DO ALL OF THE THINGS THAT WE NECESSARILY, UM, AWARD CONTRACTS TO. AND SO, UM, I FOUND THAT ARGUMENT NOT, NOT IN ANY WAY AN ISSUE FOR MY, UM, FOR MY RECOMMENDATION OR SUGGESTION, MADAM MAYOR, IF I MIGHT, THE, IN THIS COUNCIL'S RULES OF PROCEDURE AND APPENDIX, SAY THE SERVICE CONTRACT POLICY LANGUAGE, IT SAYS, WHILE ALL OF THESE SERVICES WITHIN THIS CATEGORY ARE NOT MANDATORILY PROVIDED BY A MUNICIPALITY, HAS BEEN DETERMINED THAT THE DESIRE NEED FOR THOSE SERVICES HAS BROAD BASE CITIZEN SUPPORT AND PROVIDES A COMMUNITY BENEFIT. THANK YOU, MAYOR. UM, SO I'M SUPPORTIVE OF SUPPORTING BOTH OF THESE ORGANIZATIONS BECAUSE OF THE IMPORTANT WORK THEY DO. AND AGAIN, PART OF WHY I BROUGHT UP THE QUESTION TO MELISSA IS JUST SIMPLY, I WANT US TO BE CLEAR ABOUT, YOU KNOW, IS THIS, YOU KNOW, IS THIS LIKE THE STRATEGY FOR WHAT WE'RE GONNA DO INVOLVING HOMELESSNESS OR, UH, YOU KNOW, I JUST, I I DON'T WANT THIS TO BE A ONE-OFF IN A WAY WHERE WE'VE NOT HAD ANY CONSIDERATION OF THE BROADER RESPONSE THAT WE WANT TO HAVE TO HOMELESSNESS. AND I'M NOT SURE THE NEXT TIME WE'RE GONNA BE TALKING ABOUT THAT PER SE. AND I KNOW THAT, YOU KNOW, AT LEAST FOR MYSELF, I THINK WE NEED TO KIND OF RE-LOOK AND I'VE MENTIONED THAT, UH, RE-LOOK AT, YOU KNOW, HOW WE'RE APPROACHING HOMELESSNESS AND WHAT THE CITY'S, UH, RESPONSIBILITY SHOULD OR SHOULDN'T BE. UH, GIVEN THAT WE'VE GOT AN LCEH IN THE FORM OF CATHOLIC CHARITIES THAT SHOULD REALLY BE LEADING THE CHARGE, I THINK, UH, AT THIS POINT. SO, UM, I GUESS I I, I, I MEAN WE'RE NOT GONNA HAVE THAT BROADER TOTAL CONVERSATION ABOUT HOMELESSNESS RIGHT NOW. I GET THAT. UM, I GUESS I JUST WOULD LIKE TO HEAR THAT, AND, AND YOU'VE CONFIRMED IT, MELISSA, THAT YEAH, THIS, THIS DOES, IN, IN PART IT IS A PART OF WHAT OUR HOMELESSNESS, UH, STRATEGY OR APPROACH WOULD BE GOING FORWARD. SHOULD WE MOVE FORWARD WITH THIS? I'M WITH KATHY IN THE SENSE THAT I THINK WE LOOK AT JUST OUR OVERALL SERVICE CONTRACTS, BUT I DO WANT TO, I DO THINK WE SHOULD BE ADDING THESE TWO PARTICULAR ENTITIES IN PARTICULAR. I MEAN, OH, I KEEP SAYING PARTICULAR. UM, YEAH, I MEAN, I, THERE'S NO QUESTION THAT THESE ARE GOOD ORGANIZATIONS AND WHETHER IT'S A SERVICE WE ARE OBLIGATED TO PROVIDE OR WE SHOULD BE PROVIDING, IF WE'RE SERIOUS ABOUT HELPING HOMELESS PEOPLE, WE OUGHT TO BE DOING SOMETHING MORE THAN WE'RE DOING NOW. UM, AND I ALSO WANNA REMIND EVERYBODY, UH, HOPE HOUSE DOES HAVE ADDITIONAL SPACE TO BUILD ANOTHER BUILDING. UH, AND AS I RECALL, THE NUMBERS THEY TOLD US WERE PRETTY REASONABLE. UM, I DON'T KNOW WHAT THEY'VE CHANGED WHAT THEY WERE, BUT IN THE PAST, I THINK IT'S LIKE 300,000, THEY COULD HAVE ADDED ANOTHER, EFFECTIVELY ANOTHER SHELTER. UM, NOW WHETHER THAT WOULD BE IN A GRANT, I DON'T KNOW, BUT I THINK WE OUGHT TO BE TALKING TO THEM ABOUT WHAT WE CAN DO TO HELP 'EM. UM, SO YEAH, I AGREE WITH COUNCILOR DUN. SO ANNETTE, WHERE, WHERE DO YOU SEE THIS HOMELESSNESS CONVERSATION GOING? BECAUSE WE, WE GAVE VAGUE DIRECTION, VERY VAGUE DIRECTION. I DON'T THINK WE WERE OF ONE MIND AND NOW WE'VE LOST, YOU KNOW, OUR HOUSING MANAGER WHO WAS A CHAMPION OF THAT. IS IT GONNA BE PICKED UP BY SOMEBODY ELSE? I'M TRYING TO DO THAT DAY. , UH, THANK YOU FOR THE QUESTION, MAYOR. UM, WELL, WITH JOINING, UH, TONY JOINING THE TEAM AND, UH, [04:05:01] WANTING TO HEAR ABOUT YOUR PRIORITIES, HE AND I ARE TAKING A LOOK AT LIKE WHAT IS BEST FOR STRUCTURING THE HOUSING PROGRAM, UM, INTERNALLY VERSUS OUR PARTNERS. UM, WE'RE GONNA GO BACK AND LOOK AT WHAT WE HEARD FROM YOU ALL WHEN YOU TALKED ABOUT THIS. I THINK IT WAS IN OCTOBER. UM, AND WE CAN COME BACK WITH SOME SUGGESTIONS. HE'S GOING TO BE ON YOUR, UH, CALENDAR MULTIPLE TIMES IN THE NEXT QUARTER, YOU KNOW, IN THE DISCUSSIONS AROUND THE BALANCED HOUSING STRATEGIES. SO I THINK THERE'S A NUMBER OF TIMES WE'RE GONNA BE ABLE TO TOUCH ON THIS AND WHAT THE INTEREST LEVEL IS OF THE COUNCIL. UM, IF I HEARD TODAY OR TOMORROW, UM, THAT THERE WAS AN INTEREST IN A PACKAGE, A DECISION PACKAGE, SO TO SPEAK, TO START IMPLEMENTING SOME OF THAT PLAN, UM, THAT WOULD BE GREAT INFORMATION. I DIDN'T HEAR IT IN THE INITIAL ROUND OF, UH, WHEN I ASKED WHAT ALL ANYBODY WAS INTERESTED IN PUTTING ON THIS PART OF THE AGENDA. UM, SO I THINK WE'RE GOING TO BE LOOKING AT THAT HOLISTIC, YOU KNOW, HOUSING CONTINUUM AND WHICH PIECE WE'RE GONNA DO OF WHAT ELEMENT. SO I DON'T HAVE A GOOD ANSWER FOR YOU RIGHT NOW OTHER THAN WE'VE TAKEN A STEP BACK TO REGROUP ON HOW WE'RE GOING TO TACKLE THIS. THAT'S FINE. I, I THINK THAT FROM WHAT I'VE BEEN HEARING DIRECTLY AND INDIRECTLY, MAYBE YOU HAVE SOME INFORMATION, BARBARA, ON THIS, THE SERVICE PROVIDERS ARE GONNA BE ASKING FOR INCREASES, SOME OF THEM BIG INCREASES. HA HA. ARE YOU AWARE OF THAT? THAT'S WHAT WE ANTICIP MM-HMM . SO IT IS WORTH HAVING CONVERSATION IN GENERAL. WE JUST SAID WE WANTED A FLAT BUDGET AND I KNOW THESE INCREASES ARE GOING TO BE MORE THAN THEY CURRENTLY HAVE. SO I THINK IT'S WORTH HAVING THAT GENERAL CONVERSATION AS, UH, KATHY SUGGESTED. SO YOU WANNA START? SURE. FIRST, A GENERAL COMMENT ABOUT, UM, THE CURRENT SERVICE PROVIDER CONTRACTS, AND I'VE MENTIONED THIS TO ANNETTE AND I THINK SHE'S PASSED THAT ON TO BARBARA AS WELL, THAT I DO THINK THAT WE HAVE TO, WHEN WE START LOOKING AT THESE THINGS, I DON'T KNOW WHEN WE'VE LAST DONE, UH, AUDITS OF THESE EACH CONTRACT. AND I DO THINK THAT WE NEED TO DO THAT AS PART OF OUR OVERSIGHT RESPONSIBILITY. UM, NOT IN ANY WAY ABOUT ANY ONE ORGANIZATION, BUT JUST ACROSS THE BOARD. SO I JUST THINK THAT THAT'S GOOD POLICY WITH PUBLIC MONEY. SO THAT'S NUMBER ONE. REGARDING ADDING OR EXPANDING THE PROGRAM AT THIS POINT, VIS-A-VIS THESE TWO, THESE TWO POTENTIAL APPLICANTS. HOW DOES IT BENEFIT A, THAT APPLICANT AND B, THE CITY BY HAVING THEM BE A SERVICE CONTRACT VERSUS BEING, UM, A, A GRANT RECIPIENT? 'CAUSE I'M NOT SURE IF WE'RE, ARE WE TALKING ABOUT ONE ENABLES MORE MONEY? IS IT JUST EASE OF APPLYING? I WANNA UNDERSTAND THE DIFFERENCES OF WHY IT'S ADVANTAGEOUS TO THE APPLICANT AND WHAT AND, AND TO THE CITY. AND THEN TWO, DOES THAT MEAN THAT WE ARE REOPENING THE PROGRAM FOR REDEFINITION OR EXPANSION IN A, IN A WAY THAT IS NOT WHAT IS REALLY INTENDED BY THE SPECIFIC REQUEST. AND THREE, THERE ARE SOME PROVIDERS, THERE ARE MULTIPLE PROVIDERS SOMETIMES IN A CATEGORY LIKE THE FOOD BANK, WHICH I GREATLY SUPPORT, UM, IS NOT THE ONLY FOOD PANTRY TYPE SET UP IN SEDONA. CERTAINLY NOT REGIONALLY, BUT ALSO IN SEDONA. WE HAVE ST. VINCENT DEPAUL, RIGHT AT THE, AT ST. JOHN JOHN ANI. SO IF, IF WE ARE HAVE A CONTRACT WITH ONE PROVIDER IN A GROUP WHERE THERE ARE OTHER PROVIDERS, WHAT IS, IS THAT RIGHT OR IS THAT SOMETHING WE SHOULD CONSIDER? SHOULD WE HAVE MORE THAN ONE SERVICE CONTRACT IN THE AREA? I DON'T KNOW. UM, THROWING THAT OUT THERE. SO THOSE ARE MY THREE MAJOR QUESTIONS FOR FRAMING SOME OF THIS DISCUSSION FOR ME TO BE ABLE TO MOVE FORWARD WITH SOME SORT OF IDEA OF YES, EXPAND OR NOT. UM, SO I CAN SPEAK TO A LITTLE BIT OF THAT. USUALLY THE REASON THAT A NONPROFIT SERVICE PROVIDER WILL ASK TO BE INCLUDED IN LIKE A CSP PROGRAM VERSUS GRANTS IS THE SORT OF SUSTAINABILITY OF THE REVENUE STREAM FOR THEM. UM, USUALLY WITH THE GRANTS PROGRAM, THEY HAVE TO MAKE SURE THAT WHAT THEY'RE FUNDING IS ONE TIME, UH, BECAUSE THEY DON'T KNOW THAT THEY'LL GET IT YEAR OVER YEAR. UM, WHEREAS WITH THE COMMUNITY SERVICE PROVIDERS, THEY CAN SUBMIT FOR, WE WANT TO PAY FOR THIS ONGOING THING THAT WE WANNA DO FOR THE COMMUNITY. AND THAT'S KIND OF THE DIFFERENCE WHEN, YOU KNOW, YOU HAVE A THREE YEAR CONTRACT, YOU CAN, UM, HAVE A MORE SUSTAINABLE MODEL. UM, THAT'S GENERALLY THE DEAL. UM, RIGHT NOW, JUST FOR [04:10:01] CONTEXT, WE'VE GOT ABOUT 1.9 MILLION FOR THE SIX PROVIDERS. UM, THE LARGEST PIECE OF THAT IS THE LIBRARY. OF COURSE, UH, WE DO ANTICIPATE THAT THEY'LL BE COMING WITH REQUESTS FOR INCREASES, BUT WHAT THOSE WILL LOOK LIKE, WE WON'T KNOW UNTIL FEBRUARY. DO YOU WANNA OPINE ON KATHY'S QUESTIONS? ANYBODY HAVE ANY COMMENTS? I THOUGHT KATHY BRINGS UP GOOD ISSUES AND, AND WE DO HAVE TO THINK THROUGH, YOU KNOW, THE CONSEQUENCES OF HAVING A SOLE SOURCE PROVIDER FOR SOME ACTIVITY THAT MAY NOT CURRENTLY BE OPERATING. YOU KNOW, THERE MIGHT BE CO COMPETITION IN THE AREA. UH, AND I UNDERSTAND BARB, THE COMMENT YOU JUST MADE, BUT I ALSO HAVE A, THE FLIP SIDE OF THAT SAME COIN IS THAT YOU START TO NATURALIZE GOVERNMENT CONTRIBUTIONS INTO A NONPROFIT ORGANIZATION AND IT, AND IT DOES TEND TO DECREASE THEIR ENTREPRENEURIAL ACTIVITY AROUND FUNDRAISING. I KNOW IT'S SUPPOSED TO BE ADDITIVE, BUT WE HAVE TO BE CAREFUL ABOUT SUPPLANTING THE PHILANTHROPIC TENDENCIES DESIRES OF OUR COMMUNITY. AND WHEN THE GOVERNMENT STARTS TO PITCH AN ORGANIZATION AND MAKE IT MAYBE LOOK MORE SUSTAINABLE AT THE START, MAYBE PHILANTHROPY STARTS TO DECREASE. BUT WHAT REALLY IS ON MY MIND IS 2007 AND 2008, WHEN THE ECONOMY CRASHES AND WE TALK ABOUT THE POTENTIAL FOR THAT HAPPENING IN THE FUTURE, THESE KIND OF CONTRACTS AND THE GOVERNMENT BUDGET TEND TO BE AT THE , THE START OF THE CUTS. AND SO IF YOU CONDITION NONPROFITS TO TURN TO THE GOVERNMENT FOR FUNDING, AND THEN THAT FUNDING GETS CUT IN A DOWNTURN, RIGHT? WHEN THE NEED IS OFTEN THE GREATEST, IT REALLY CAUSES CHAOS IN THE, IN THE COMMUNITY, IN THE NONPROFIT COMMUNITY. THOSE, THOSE ORGANIZATIONS FORGOT HOW TO BE SO PRODUCTIVE ABOUT FUNDRAISING AND THEY LOSE THAT MONEY AND IT'S A REAL CRISIS. AND THAT WAS AMONGST THE HARDEST DECISIONS WE HAD TO MAKE BACK IN 2007, 2008, WAS, YOU KNOW, THE REALITY OF THOSE BUDGETS BEING CUT. AND, AND IT JUST, THE INTENTION IS GREAT AT THE START AND EVERY, THE ORGANIZATIONS ARE DOING GREAT WORK, BUT I JUST, I'M AFRAID THAT SOMEHOW IF YOU DON'T LIMIT THE PERCENTAGE OR YOU REQUIRE SOMETHING ELSE, YOU REALLY THINK IT THROUGH, YOU CAN SET PLACES UP FOR REALLY DIFFICULT TIMES. SO, SO A COUPLE OF A COUPLE OF THINGS TO, TO STATE THIS, CRUDELY, WE JUST GAVE ALMOST A QUARTER OF A MILLION DOLLARS TO TWO ARTS ORGANIZATIONS IN THIS COMMUNITY. YOU JUST TALKED ABOUT HOW WE'RE MAKING NONPROFITS DEPEND ON US. BY THE WAY, THERE'S OVER 200 NONPROFITS REGISTERED IN SEDONA. UM, THAT'S A LOT. THAT'S A LOT TO ASK. A SMALL POPULATION THAT HAS FUNDS TO, TO GIVE, TO GIVE TO. SO WE MAY HAVE TO SAY, A, HOW IMPORTANT IS IT FOR US TO BE ABLE TO SUPPORT OTHER PEOPLE IN OUR, IN OUR COMMUNITY WHO DON'T HAVE ACCESS TO FOOD, WHO DON'T HAVE ACCESS TO HOUSING OR IN CRISIS? UM, THAT'S THE WHOLE, THAT'S THE WHOLE POINT OF THE HOMELESSNESS. IF THE ANSWER IS WE DON'T WANNA DO ANY OF THAT, THEN THE ANSWER IS WE DON'T WANNA DO ANY OF THAT. BUT I WOULD ALSO PUSH BACK THEN AND SAY, BASED ON YOUR ARGUMENT THAT WE SHOULDN'T BE DOING THIS AT ALL. RIGHT? NONE OF THESE ORGANIZATIONS SHOULD BE GETTING ANYTHING FROM US. 'CAUSE ALL OF THEM HAVE SOME PART OF THEIR OPERATING BUDGET, WHICH IS DEPENDENT ON US FUNDING THEM EVERY YEAR FOR THREE YEARS, AND THEN THEY RE RENEGOTIATE FOR MORE MONEY FOR THREE YEARS. SO THIS IS SLIPPERY SLOPE TO TAKE THE APPROACH OF WE SHOULD FUND NONE OF THEM BECAUSE THEY ALL MAY END UP BEING DEPENDENT ON US. IT'S ALSO WHAT DO WE AS REPRESENTATIVES OF THE COMMUNITY, HOW DO WE WANT OUR COMMUNITY TO LOOK? UM, AND HOW DO WE WANT OUR COMMUNITY TO FEEL ABOUT ITSELF AND ABOUT US WHEN IT COMES TO HELPING OTHERS IN OUR COMMUNITY WHO ARE NOT AS WELL OFF AS SOME OF US MIGHT BE. I UNDERSTAND ALL THE ISSUES AROUND THAT. I'VE HEARD AROUND, YOU KNOW, HOMELESSNESS AND, YOU [04:15:01] KNOW, WE'RE NEVER GOING TO BUILD A, UM, YOU KNOW, A SHELTER HERE. OKAY? WE'RE NEVER GONNA DO A LOT OF THINGS HERE THAT WERE ON THAT LIST. UM, WE'RE JUST NOT. AND SO, YEP, MY BLEEDING HEART SAID, YOU KNOW, IF WE'RE GONNA DO SOMETHING FOR THE HOMELESS, WE CAN DO THESE TWO THINGS. AND THEY'RE ALREADY HERE AND THEY'RE ALREADY WELL MAINTAINED. THEY'RE ALREADY WELL KNOWN. DO WE HAVE MORE THAN ONE? WE ABSOLUTELY DO. THE SEDONA FOOD BANK IS INDEPENDENT. AND, UM, THE OTHER ONE IS, IS THROUGH THE CHURCH ORGANIZATION. SO I DON'T KNOW HOW THAT ONE WORKS OR, OR DOESN'T WORK. SO I'M JUST SAYING WE, WE NEED, WE NEED TO BE CAREFUL IN HOW WE ALSO THINK ABOUT HOW WE'RE TRYING TO HELP THE COMMUNITY AND WHO WE'RE TRYING TO HELP WITH THESE ORGANIZATIONS AND THEN DECIDE WHETHER OR NOT WE COULD HAVE NOT SPENT THAT $200,000 ON TWO OTHER ORGANIZATIONS FOR THE ARTS, BUT INSTEAD PUT THAT $200,000 TOWARDS PEOPLE IN OUR COMMUNITY WHO NEED HELP. TO PETE'S COMMENT, I MEAN, YEAH, IF WE HAVE TO CUT BUDGETS, WE HAVE TO CUT BUDGETS, BUT I MEAN, AND ESPECIALLY IN AN ECONOMIC DOWNTURN, THE LAST THING WE NEED TO BE DOING IS CUTTING MONEY TO ORGANIZATIONS THAT ARE HELPING FEED PEOPLE. I MEAN, CAPITAL IMPROVEMENT PROJECTS DON'T FEED PEOPLE. THEY DON'T, YOU KNOW, SO I GUESS THE ANSWER IS IF THERE IS A DOWNTURN AND WE HAVE TO CUT A BUDGET, DON'T CUT THESE BUDGETS. THERE ARE PLENTY OF OTHER PLACES WE CAN SAVE MONEY THAT, YOU KNOW, AREN'T TAKING FOOD OUT OF PEOPLE'S MOUTHS. SO THAT WOULD BE MY TAKE ON THAT. I CAN GIVE YOU SOME CONTEXT ABOUT WHAT HAPPENED HERE. AND THE DOWNTURN, 2007, EIGHT DIDN'T HIT SEDONA TILL LATER. AND UH, AND AT THAT POINT, THE SERVICE CONTRACTS FOR THE LIBRARY AT LEAST WAS, WAS CUT BACK. I'M NOT SURE WHAT OTHER SERVICE CONTRACTS WE, WE HAD AT THE TIME, BUT THEY ALL TOOK A, A, A CUT, UH, IN, AT, AT, DURING, UH, CO THE SMALL GRANTS WERE CUT BACK AND ELIMINATED FOR EVERYBODY OTHER THAN THE ORGANIZATIONS THAT PROVIDED SOCIAL SERVICES. SO THE ONLY PEOPLE WHO COULD APPLY FOR A SMALL GRANT WAS AN ORGANIZATION LIKE, AND FOOD BANK WAS ONE OF THEM, UH, THAT PROVIDED A SOCIAL SERVICE OR FOR PEOPLE. SO AFTER COVID, THEN THE ARTS GROUPS CAME BACK AND OTHER GROUPS THAT PROVIDED RECREATION AND OTHER THINGS WERE ALLOWED BACK INTO THE SMALL GRANTS PROGRAM. BUT THAT'S, THAT'S WHAT THE CITY'S DONE IN THE PAST. WE ALSO INCREASED TO MAKE UP FOR WHEN WE HAD THE SENSE THAT THE, UH, WHEN THE ECONOMY WAS NOT GONNA TAKE THE COVID HIT AND WE ACTUALLY HAD SURPLUS FUNDS, WE IN INCREASED BACK IN THOSE YEARS MONEY TO COMPENSATE FOR THE YEARS THAT THE BUDGET HAD BEEN REDUCED IN GRANTS. AND ANY, I DON'T KNOW IF THAT APPLIED TO CONTRACTS AS WELL. YEAH. BUT IF IT DID, WE, WE HAD THE SAME PHILOSOPHY. SO THEY WERE ALL MADE WHOLE PLUS. YEAH. AND THE OTHER THING I WOULD SAY IS THAT I DON'T THINK THERE'S A SINGLE, AND CORRECT ME IF I'M WRONG, I DON'T THINK THERE'S A SINGLE ORGANIZATION FOR WHOM WE PROVIDE A HUNDRED PERCENT OF THEIR BUDGET. AND SOME ARE VERY SMALL. I KNOW THE CAREGIVERS, 'CAUSE I WAS THE LIAISON, OUR PERCENTAGE OF THEIR ENTIRE BUDGET IS REALLY SMALL. SAME WITH HUMANE SOCIETY. I HAVEN'T LOOKED AT THAT IN A WHILE, BUT IT WAS A VERY SMALL PIECE OF THEIR OVERALL BUDGET. YEAH, THAT'S TRUE. I CAN'T SPEAK TO WHAT EXACTLY THE PERCENTAGES ARE, BUT ONE OF THE THINGS ON THE APPLICATION IS HOW MUCH ARE YOU REQUESTING AND HOW MUCH IS YOUR TOTAL BUDGET SO THAT WE CAN MAKE AN, AN INFORMED DECISION AS A CITY AS TO HOW SUSTAINABLE THE ORGANIZATION IS SHOULD CITY FUNDS NOT BE AVAILABLE. SO I GUESS MY QUESTION, AND PETE, YOU'VE MENTIONED SOMETHING THAT I THOUGHT WAS, WAS IMPORTANT THAT WE, WE SET EXPECTATIONS. SO WHAT, WHAT PROGRAM WOULD WE FUND LIMIT THAT SO THAT WE WOULDN'T BE PROVIDING ALL THE FUNDING AND THEY WOULDN'T START BEING, I THINK THIS IS WHAT YOU SAID, THE RELIANT ON US AND STOP THEIR OWN FUNDRAISING BECAUSE NOW THEY, THEY'RE GETTING MONEY FROM THE CITY. 'CAUSE THAT I THINK IS A LEGITIMATE CONCERN. SO WE COULD REACH OUT TO THEM AND ASK THEM TO PROPOSE SOMETHING. WE COULD SAY, WE'RE WILLING TO SPEND X NUMBER OF DOLLARS, OR WE COULD SAY WE WE'RE NOT INTERESTED IN [04:20:01] EXPANDING THE PROGRAM. A GENERAL COMMENT TO WHAT YOU SAID, ADDRESSING PETE'S POINT, WHICH I THOUGHT TOO. UM, AGAIN, BARBARA, TO ME, IT'D BE IMPORTANT FOR WHAT IT COMES FORWARD THAT WE KNOW, YOU KNOW, THIS IS, REPRESENTS THE ASK REPRESENTS X PERCENTAGE OF, OF THE, UH, OF THE ORGANIZATIONAL BUDGET. BECAUSE WE COULD CAP, YOU KNOW, AND MAKE SURE THAT WE'RE NOT, YOU KNOW, AND FOR THE, TO YOUR DEPENDENCY QUESTION THAT YOU RAISED, WHICH I THINK IS A REALLY IMPORTANT POINT THAT YOU RAISED, UM, BUT THERE COULD SOMETHING LIKE THAT. DO YOU THINK, WOULD THAT ADDRESS SOME OF THE CONCERN? YOU KNOW, I, I DO THINK IT TIES INTO, WHAT'S THE PHRASE THE GOVERNMENT PHRASEOLOGY I'VE HEARD BEFORE ABOUT MAINTENANCE OF EFFORT, RIGHT? SO IF YOU CONTRACT TO GIVE SOME MONEY THAT THERE'S WORDS IN HERE THAT, THAT'S AIMED AT MAKING SURE IT'S NOT SUPPLANTING THEIR EFFORT, THAT THIS IS ADDITIVE SOMEHOW. I THINK IT'S MAINTENANCE EFFORT, WHAT WE, SO CAN WE PROPOSE A BUDGET ITEM FOR ADDITIONAL CORDLESS MICS? ? YES. THANK YOU. YOU KNOW, MY OTHER CONCERN THEN WHEN WE'RE TALKING ABOUT, YOU KNOW, YOU PHRASE IT AS DEPENDENCE, BUT THERE'S ALSO THE ASPECT OF WE BECOME THE ASK FOR THE SHORTFALL, RIGHT? LIKE, THAT'S WHAT HAPPENED WITH HUMANE SOCIETY LAST YEAR, RIGHT? AND WASN'T THE DRIVER, OR AT LEAST PART OF THE DRIVER BEHIND THAT OF MORE ABANDONS ABANDONED PETS, TURNINGS, TURNINGS OWNER TURNING. YEAH, THAT'S WHAT I, THAT'S WHAT I MEAN. THAT'S, THAT'S, THAT'S WHAT I MEAN. WELL, BUT AN ABANDONED COULD BE A STRAY. AND WE DO PAY THEM FOR STRAYS THAT WE PAY THEM FOR. THAT'S OUR CONTRACT. RIGHT. HER THING WAS WE HAD MORE OWNERS TURNING THEM IN. SO THEY ARE NOT STRAYS, THEY DIDN'T TURN THEM LOOSE. THEY TOOK THEM THERE. AND THEN THEY WANTED US TO BASICALLY EXPAND OUR DEFINITION OF A STRAY TO INCLUDE OWNER TURNED IN. RIGHT. AND I HAVE HEARTBURN WITH THAT. I MEAN, WE'RE NOT RESPONSIBLE FOR SOMEBODY ELSE'S PET. RIGHT. AND I MEAN, I'M STILL BURNED BY, UH, YAVAPAI COUNTY AND WHAT THEY DID ON LIBRARY FUNDING AND, AND HOW WE GET FORCED INTO BEING, YOU KNOW, THE STOP GAP. AND THAT CONCERNS ME ABOUT EVERY ONE OF THESE, YOU KNOW, NEW THREE YEAR CONTRACTS WE'RE GONNA SEE. AND IT, IT DOES SPEAK, I THINK TO WHAT YOU'RE SAYING, KATHY, ABOUT, YOU KNOW, MAYBE WE CAP AS A MAXIMUM PERCENT OF BUDGET, HOW MUCH WE'RE WILLING TO FUND, AND MAYBE THAT HELPS MINIMIZE THAT SUM AND FORCES ONGOING AND, AND AGGRESSIVE FUNDRAISING. BUT I MEAN, WE CAN'T JUST CONTINUE TO BE THE, THE SOURCE OF, UH, OF STOP GAP FUNDING. AND IT JUST FEELS LIKE THAT'S THE EXPECTATION. AND THE MORE THAT WE, UH, CREATE THESE SERVICE CONTRACTS, IT'S JUST THAT MANY MORE CHANCES FOR THAT TO BE HAPPENING. BUT WHEN THE DAYS DONE, I WANNA SAY YES TO THESE TWO . SO , THANK YOU. MARY. JUST WANTED TO CLARIFY ON THE HUMANE SOCIETY REQUESTS LAST YEAR. SO YES, SOME OF IT WAS, THERE WERE MORE OWNER SURRENDERS, BUT THE MAIN TWO REASONS WERE THAT AT THE BEGINNING OF THE THREE YEAR CONTRACT, THAT DIRECTOR WAS BRAND NEW TO THE ORGANIZATION AND HAD A VERY SHORT TIME TO PREPARE HER REQUEST TO THE CITY AND UNDERESTIMATED THE COST PER ANIMAL, UM, TO HOUSE, FEED MEDICAL CARE FOR THE ONES, THE STRAYS, EVERYTHING. AND THEN THE SECOND ELEMENT WAS THAT, UM, THE ANIMALS WERE STAYING IN THEIR CARE LONGER ON AVERAGE THAN IN THE PAST. IT WAS GETTING HARDER TO ADOPT THEM OUT. UM, AND SO THEY WERE TAKING CARE OF 'EM LONGER AND THE COST PER DAY WAS HIGHER THAN THEY HAD ORIGINALLY REQUESTED IN THE, IN THE CONTRACT. SO THAT WAS, UM, THE OTHER TWO REASONS WHY THEY CAME FORWARD TO ASK FOR AN ADJUSTMENT, UM, LAST YEAR. AND SO THIS YEAR, GOING INTO THE PROCESS, SHE'S BEEN THERE THREE YEARS NOW. SHE'S DONE ALL OF THAT. BREAKOUTS WILL BE INTERESTING TO SEE WHAT SHE PRESENTS, UM, THIS TIME. SO EVERYBODY'S WEIGHED IN. NO, WE'RE NOT GONNA VOTE. BUT, UH, ARE THERE MORE, ANY ADDITIONAL QUESTIONS? UM, IN THE MEMO, WHAT I TRIED TO DO WITH EACH OF THESE PROPOSALS WAS TO PUT SOME KIND OF, UH, IDEA AROUND IF THE COUNCIL WANTED TO MOVE IT FORWARD, WHAT THAT COULD LOOK LIKE. SO, UM, YOU KNOW, YOU CAN VOTE ON THAT TOMORROW, BUT IN THIS CASE, I SUGGESTED THAT, UM, IT GO THROUGH THE DECISION PACKAGE PROCESS [04:25:01] JUST LIKE THE OTHER CSPS. AND THEN WHEN YOU GET TO THAT POINT OF THE BUDGET, YOU COULD DECIDE. UM, BUT IF YOU'RE NOT INTERESTED IN FUNDING THEM AT ALL, THEN WE WOULD WANNA KNOW THAT TOMORROW SO THAT WE WOULD NOT GO THROUGH THE EFFORT OF CREATING A PROPOSAL IN THE DECISION PACKAGE PROCESS. BUT WE'RE NOT VOTING. I HEAR GENERAL CONSENSUS IN LOOKING AT FUNDING THEM, BUT A LOT OF QUESTIONS NEED TO BE NAILED DOWN OR A LOT OF ANSWERS TO QUESTIONS NEED TO BE NAILED DOWN. OKAY. READY TO MOVE ON. UM, THE NEXT ITEM IN THE MEMO, AND I'M NOT SURE WHICH OF THESE THREE COUNSELORS WANTS TO TAKE THE LEAD ON EXPLAINING THEIR PROPOSAL, BUT, UH, VICE MAYOR FOLTZ COUNSELOR, DUNNING COUNSELOR FURMAN, SUBMITTED A CONCEPT AROUND, UM, INDEPENDENT AUDITOR, OR EXCUSE ME, LIKE A PERFORMANCE AUDITOR. UM, AND, UH, ACCOUNTABILITY WITH PERFORMANCE METRICS AND A TWO PHASED APPROACH. UM, THE FIRST PHASE, TALKING ABOUT A COUNCIL SUBCOMMITTEE. SO WHICH OF YOU WOULD LIKE TO TALK ABOUT THIS ONE? , YOU DID A FINE JOB. RESTART EACH OTHER. I WAS GONNA SAY, SINCE HE'S NOT VOLUNTEERING, MAKE HIM WELL, I THINK IT SHOULD BE IN THE ORDER WAS MENTIONED. OH, AND I LISTED THE VICE MAYOR FIRST OUT OF DEFERENCE FOR THE, THE POSITION. NO, NO, NO DEFERENCE REQUIRED, BUT THANK YOU NONETHELESS. OKAY, I'LL TAKE FIRST STAB AT IT AND, UH, MELISSA AND PETE CAN CLEAN UP MY MESS THEN. SO, UM, FOR THE, THE VETERANS ON COUNCIL, THIS GOES BACK FOR THE ENTIRE TIME THAT, UH, PETE, MELISSA AND I HAVE BEEN ON COUNCIL IN WHICH, UH, PETE INITIALLY HAD SUGGESTED WHAT ABOUT AN AUDITOR. AND, UH, WE HAVE, UH, DECLINED TO MOVE FORWARD ON THAT, UH, A COUPLE OF TIMES, UH, SINCE THEN. AND, YOU KNOW, IN CONTINUING TO THINK ABOUT, UH, A DESIRE FOR TRANSPARENCY AND ACCOUNTABILITY, WHICH WE DO HERE IS SOMETHING THAT THE COMMUNITY VALUES AND AT TIMES IS SKEPTICAL ABOUT WHETHER, UH, WE REQUIRE ENOUGH OF THAT AS COUNCIL, UH, OR WHETHER IT'S PROVIDED ENOUGH BY THE CITY. UM, YOU KNOW, WE, WE'VE BEEN HAVING CONVERSATIONS ON THIS TOPIC FOR A WHILE, AND SO THE THE FIRST PHASE IS, YOU KNOW, HOPEFULLY KIND OF THE, THE SLAM DUNK PIECE BECAUSE IT'S LARGELY A BYPRODUCT OF THE ERP IMPLEMENTATION THAT, UH, BY IMPLEMENTING THAT THERE WOULD BE, UH, A GOOD DEAL OF ADDITIONAL PERFORMANCE METRIC BASED INFORMATION AVAILABLE THAT COULD BE SHARED WITH THE COMMUNITY. AND WE'RE IN COUNCIL AS WELL. UM, AND WE'RE EXPECTING THAT THE ERP, CORRECT ME IF I'M WRONG IN THAT, I MEAN, THE ERP SOLUTION SHOULD SUPPORT THE CREATION OF METRIC BASED DASHBOARDS. SO, UM, SO, SO PHASE ONE IS, IS NOT A, A TERRIBLY BIG STRETCH FROM, I MEAN, REALLY WHAT YOU PROBABLY WOULD'VE IMPLEMENTED ANYWAYS, UH, AT SOME POINT. BUT, UH, THERE'S DEFINITELY INTEREST AMONGST THE THREE OF US TO BE, UH, HELPING DRIVE THAT AND, UH, IDENTIFYING, WORKING WITH, UH, A COMMITTEE TO DRIVE, UH, THE, THE CREATION OF THE DASHBOARD METRICS, UH, ET CETERA. SO THAT'S KIND OF PIECE ONE. SO MELISSA OR PETE, DO YOU WANNA CLEAN UP THAT BEFORE WE TALK ABOUT PART TWO? OKAY. ALL RIGHT. SO, SO THE SECOND PART REALLY IS, IS CONTINGENT ON THE WORK DONE IN THE, IN THE FIRST PHASE. AND THAT IN THE FIRST PHASE, WE WOULD WANT TO REALLY FARE IT OUT WHAT WOULD BE THE BEST METHOD FOR ONGOING AUDITING OF SPECIFIC, UH, YOU KNOW, MAJOR PROJECTS, UM, SERVICE PROVIDER CONTRACTS, UH, ET CETERA. AND, YOU KNOW, SINCE WE SUBMITTED THIS, WE'VE HAD A CHANCE TO TALK WITH ANNETTE. AND, UM, IT, IT WOULD BE VERY UNUSUAL FOR A CITY OUR SIZE TO HAVE A IN-HOUSE, UH, PERFORMANCE AUDITOR. AND SO IT MIGHT BE SOMETHING THAT WE WOULD LOOK AT MORE CREATIVELY, UH, BETWEEN, UH, USE OF, UH, THIRD PARTY, UH, AND EVEN POSSIBLY FOLKS FROM THE COMMUNITY WITH SPECIFIC SKILL SETS AND INTERESTS THAT COULD, UH, PARTICIPATE IN, UH, A PHASE TWO. UM, SO I'LL STOP THERE NOW AND SEE PETE, MELISSA, YOU WANT TO ADD ON TO THIS? SURE, [04:30:05] YEAH. I'M JUST TICKLED TO, UH, BEEN ABLE TO GET TWO COUNSELORS TO, TO, UH, I FURTHER ENTERTAIN MY CON MY IDEAS FROM THREE YEARS AGO ABOUT, UH, THE INDEPENDENT AUDITOR. I WILL SAY, JUST TO CORRECT ONE LITTLE ISSUE, THIS THING YOU SAID, BRIAN, IS THAT IN THE PAST COUNCIL HAS AUTHORIZED THE FURTHER DEVELOPMENT OF THE CONCEPT, AND KAREN AND I WERE TO SIT DOWN AND WORK TOGETHER, AND THEN WHEN KAREN ANNOUNCED HER DEPARTURE, WE DIDN'T. AND SO IT'S KIND OF BACK ON THE TABLE NOW, AND I DIDN'T WANNA COME RIGHT OUT, ALTHOUGH I MY INTRODUCTION CONVERSATION TO YOU, I THINK I TALKED ABOUT THIS, BUT I DIDN'T WANNA REALLY PUT THIS ON THE TABLE TILL YOU HAD SOME TIME IN THE SADDLE. SO, UH, AND YES, IR RIGHT, AGAIN, JUST REFLECTING MY EXPERIENCE WITH THIS IS THAT THIS IS A DE A FUNCTION, A DEPARTMENT WITHIN THE CITY THAT OFTENTIMES ACTUALLY PAYS FOR ITSELF IN THE END BY AVOIDANCE COST, UM, DOING THINGS BETTER, MORE EFFICIENTLY, DIFFERENT, THE DEPARTMENT CAN, UH, CAN ACTUALLY SHOW SAVINGS GENERATED BY ITS ACTIVITIES, WHICH IS, YOU KNOW, REALLY AN IMPORTANT THING TO THINK ABOUT. AND YES, IT WOULD BE UNUSUAL FOR A CITY OF OUR SIZE, BUT WE'RE ALSO NOT A CITY OF OUR SIZE IN TERMS OF THE BUDGET SPEND THAT WE HAVE. WE'RE QUITE A BIT BIGGER IF YOU LOOK AT THE DOLLARS THAT WE SPEND BECAUSE WE HAVE A TREMENDOUS INFLUX OF SALES TAX REVENUE, VISITOR TAXES PAID, AND OUR CAPITAL EXPENDITURES ARE BIG. SO AGAIN, YOU KNOW, AS I REFLECTED IN THE PAST, MY IDEAS OF TICKING THROUGH WHEN IT WOULD'VE BEEN HELPFUL, REMEMBER, THIS IS A COUNCIL TOOL. THIS IS A, PER AN INDEPENDENT AUDITOR WOULD REPORT TO COUNCIL AND COUNCIL DEPLOYS THEM TO DO WORK THAT, YOU KNOW, CITY STAFF WASN'T READY TO TAKE ON OR DIDN'T HAVE THE BUDGET FOR OR, OR WHATEVER. AND PARTICULARLY I THINK OF ELEMENTS LIKE THE CITY CHAMBER RELATIONSHIP SOME YEARS AGO, WE'VE FINALLY FORMED A COUNCIL SUBCOMMITTEE, BUT IT WOULD'VE BEEN REALLY INTERESTING TO HAVE SOMEONE THAT ACTUALLY IS LOOK, IS USED TO DOING THE AUDITS OF PERFORMANCE TO GET INTO THE CHAMBER AND TO SEE HOW THAT MONEY WAS BEING SPENT. AND I THINK WE COULD HAVE SURFACED A LOT OF THE ITEMS THAT EVENTUALLY CAUSED THE DIVORCE TO HAPPEN EARLIER AND, AND MIGHT HAVE HAD A, AN OUTCOME DIFFERENTLY. I THINK ABOUT LARGE CONTRACTS LIKE THE GARAGE, PERHAPS, THAT'S HAD LOTS OF ADD-ONS AND WE THINK ABOUT WHAT PROCESS ARE WE ACTUALLY USING TO MANAGE AND ARE WE DOING IT RIGHT? BUT I ALSO THINK ABOUT ALL THE, THE SERVICE CONTRACTS, WHICH NOW POTENTIALLY ARE GETTING MORE NUMEROUS , UH, THE GRANT CONTRACTS THAT ARE OUT THERE. SO IT'S IS OUR CITY STAFF DOESN'T ACTUALLY GO AND LOOK AT THE PERFORMANCE OF THESE PEOPLE. WE DO FINANCIAL AUDITS, WE DO SOME SCREENING OF THINGS, PROPOSALS THAT ARE SUBMITTED TO US, BUT WE DON'T ACTUALLY SEND KNOWLEDGEABLE PEOPLE OUT TO THE ORGANIZATION TO KICK THE TIRES AND SEE IF THEY'RE SAYING, IF THEY'RE DOING WHAT THEY SAY THEY'RE DOING. RIGHT. THE IMPORTANT THING ABOUT DO WHAT, SAY WHAT YOU DO AND DO WHAT YOU SAY. SO IT ALMOST AS EVERY MONTH GOES BY, YOU KNOW, I THINK OF ANOTHER ELEMENT WHERE COUNCIL COULD BENEFIT FROM, UH, HAVING A, A SKILLED PERSON THAT IS USED TO GOING INTO ORGANIZATIONS AND LOOKING AT WHAT THEY SAY THAT THEY WANT TO DO AND THEN WHAT THEY'RE DOING AND COMING OUT AND LOOKING AT BEST PRACTICES AND AN INDEPENDENT AUDIT IS THE BEST WAY THAT I KNOW OF IN LOCAL GOVERNMENT TO PUT THAT HAT ON ABOUT EFFICIENCY AND PROCESS TO GET IT DONE. SO, THANK YOU, PETE. AND JUST TO CLARIFY, WHAT WE'RE REALLY ASKING FOR IS SUPPORT FOR PHASE ONE. SO WE WOULD HAVE TO COME BACK, PRESUMABLY A YEAR FROM NOW REGARDING PHASE TWO AND BE ABLE TO SHOW PROGRESS, UH, SUCCESS AND A PLAN. AND THEN COUNSEL WOULD TAKE UP WHETHER OR NOT TO PURSUE PHASE TWO IN WHATEVER FORM THAT THAT TAKES. AND SO I JUST WANNA JUMP ONTO THAT AND TAG ONTO THAT AND SAY, UM, IN PHASE TWO, THERE COULD BE ALL KINDS OF CONVERSATIONS IN WHICH, YOU KNOW, MAYBE, YOU KNOW, THE CITY MANAGER SAYS WE ALREADY HAVE SOMEBODY ON STAFF WHO COULD DO THAT, IF THAT'S WHAT WE [04:35:01] WANNA DO. OR OUR INDEPENDENT AUDITORS WHO AUDIT, YOU KNOW, THE, THE FINANCE DEPARTMENT EVERY YEAR COULD BE TAGGED ONTO, THERE COULD BE ALL KINDS OF SOLUTIONS BEYOND IT BEING A NEW DEPARTMENT WITH A NEW HEADCOUNT. SO I JUST WANNA SAY, THIS ISN'T AN ASK FOR A NEW HEADCOUNT. WE'RE SO FAR AWAY FROM UNDERSTANDING WHAT IT MEANS AND WHAT WILL HAVE TO BE DETAILED OUT OR AUDITED. UM, THE FIRST STEP IS TO FIND OUT WHAT ARE THE METRICS THAT WE NEED AND THEN DETERMINE HOW WE'RE GOING TO GET THEM AND THEN DETERMINE WHETHER OR NOT IT, WHATEVER THE CONTRACTS ARE ASIDE. 'CAUSE THEY'RE VERY DIFFERENT THAN AUDITING NUMBERS AND AUDIT AUDITING, INTERNAL PERFORMANCE. SO THERE ARE TWO PIECES TO THIS, INTERNAL, INTERNAL PERFORMANCE AND, AND CONTRACTS. AND SO WE DON'T KNOW WHAT ALL THAT MEANS YET. WE JUST FEEL IT NEEDS TO BE INVESTIGATED BECAUSE WE DO HAVE A LOT OF MONEY IN PLAY IN, IN OUR COMMUNITY, AND WE DO WANT PEOPLE TO KNOW HOW IT'S BEING SPENT AND WHETHER OR NOT WE AS COUNSELOR ARE GETTING ALL THE PIECES OF INFORMATION WE NEED TO MAKE A GOOD DECISION ON PERFORMANCE. I ALWAYS LIKE THE IDEA OF, YOU KNOW, MORE ACCOUNTABILITY AND SOMETHING THAT FURTHERS OUR UNDERSTANDING. I AM, I HAVE QUESTIONS, UM, THAT I'M NOT CLEAR ON HERE THOUGH, BECAUSE, AND JUST FOR CONTEXT, WHEN A COUPLE OF THINGS. FIRST OF ALL, IF THERE, IF THIS A COMMITTEE IS EMPOWERED THEN TO BE LOOKING INTO THIS QUESTION AND GETTING INFORMATION FROM STAFF, IS THAT BYPASSING THE CITY MANAGER, WHICH WOULD BE, UH, CONTRADICTORY TO OUR RULES OF PROCEDURE THAT, THAT WE HAVE RECENTLY AMENDED AND ADOPTED BECAUSE WE WERE CONCERNED ABOUT GOING OUTSIDE OF CITY MANAGER ROLE IN THE RIGHT PROCEDURE. SO I, I HAVE QUESTIONS ABOUT POSSIBLE CONTRADICTIONS IN THAT AREA. NUMBER TWO, WHEN THE COMMITTEE, UH, THE SUBCOMMITTEE REGARDING THE CHAMBER WAS ESTABLISHED, WE DID HAVE STAFF SUPPORT FOR THAT WORKED. THE COMMITTEE WORKED DIRECTLY WITH THE CITY MANAGER. IT WAS, AND, AND THE ASSISTANT TO THE CITY MANAGER AT THAT TIME, WHOSE NAME IS ESCAPING? ME? ME. MEGAN. MEGAN, YES. OH, OH, OH. AND THEN, AND THEN ACTUALLY AFTER, WE ALSO HAD THERESA THERESA FOR A WHILE. UM, SO THERE WAS, THERE IS A FILTER DOWN WHEN YOU THINK THAT YOU'RE NOT CREATING A HEADCOUNT OR YOU'RE NOT DETRACTING FROM OTHER DEPARTMENTS. I MEAN, I'VE JUST, WE'VE, WE SAW HOW THAT HAPPENED, IT JUST ORGANICALLY HAPPENS. UM, SO WHAT STAFF SUPPORT WOULD BE NEEDED AT PHASE ONE LEVEL? UM, AND THEN ALSO SINCE THIS IS SOMETHING NEW AND WILL REQUIRE AN EXPENDITURE, WHETHER IT'S AN OUTSIDE CONSULTANT OR STAFF SUPPORT BEING DIVERTED IN ACCORDANCE WITH OUR DISCUSSION PARAMETERS YESTERDAY, WHAT ARE YOU WILLING TO GIVE UP FOR IT? OKAY. UM, COUNSELOR KINSELLA, UM, AS I DESCRIBED IN THE RECOMMENDATION PART OF THE MEMO, YOU KNOW, I DON'T HAVE ANY PROBLEM WITH, UH, THE COUNCIL HAVING A SUBCOMMITTEE THAT WANTS TO WORK WITH MYSELF AND THE FINANCE DIRECTOR OR BARBARA, UM, ON EXAMINING DIFFERENT CONTRACTS OR DIFFERENT WHATEVER, YOU KNOW, THE SCOPE ENDS UP BEING AND WE COULD HELP PREPARE THAT, UH, PLAN, YOU KNOW, SO THE WHOLE COUNCIL IS AWARE OF WHAT'S BEING LOOKED AT. UM, I DON'T, I GUESS I DIDN'T SEE THIS AS, UM, THREE COUNSELORS DIRECTING ANY PARTICULAR STAFF PERSON'S WORK, BUT MORE, YOU KNOW, THE REQUEST FOR THE INFORMATION, WHICH AGAIN, IT'S ALL PUBLIC RECORD ANYWAY THAT ANYBODY COULD ASK FOR. THIS IS JUST A MORE, UM, ORGANIZED AND SPECIFIC EFFORT AROUND, YOU KNOW, WHATEVER THOSE ITEMS ARE GONNA BE ON THE LIST. AND THEN, UM, I GUESS ALSO GOING ALONG THE LINES OF, UM, THE CONCEPT THAT I DESCRIBED EARLIER ABOUT IF WE HAVE COUNCIL CHAMPIONS WORKING WITH STAFF CHAMPIONS ON SPECIFIC THINGS, THEN WE'RE WORKING TOGETHER, YOU KNOW, TO ADVANCE WHATEVER OBJECTIVES. SO, UM, I PERSONALLY AM NOT OPPOSED TO THE COMMITTEE CONCEPT OF WORKING TOGETHER IF THERE'S A DEEP DIVE ON CERTAIN THINGS THAT COUNCIL'S INTEREST, EXCUSE ME, INTERESTED IN THE OTHER PIECES WITH THE ERP IMPLEMENTATION, UM, AND THE CLEAR AND TOTALLY VALID DESIRE OF THE COUNCIL TO HAVE CERTAIN DASHBOARDS OR PERFORMANCE METRICS, ET CETERA. THIS GROUP COULD WORK WITH BARBARA [04:40:01] AND OUR, UM, IMPLEMENTATION TEAM TO DESIGN UPFRONT, OKAY, WHAT ARE THOSE REPORTS, DASHBOARDS, WHATEVER THAT ARE NEEDED AT THE COUNCIL LEVEL, WHICH ARE GONNA BE DIFFERENT THAN WHAT WE WOULD PROBABLY USE AT THE STAFF LEVEL. AND THAT COULD BE REALLY HELPFUL TO US TO, TO GET THAT INSIGHT AND HELP CREATE THOSE SO THAT YOU HAVE MEANINGFUL TOOLS AT YOUR DISPOSAL. UM, NOW I DO HAVE DIFFERENT OPINIONS WHEN IT COMES TO LIKE CREATING A WHOLE DEPARTMENT THAT'S INDEPENDENT AND REPORTING TO THE COUNCIL AND, YOU KNOW, THAT NEEDS A LOT MORE WORK OR FURTHER EXPLORATION AFTER WE DO SOME OF THESE INITIAL THINGS. BUT, UM, SO I GUESS I DON'T SEE IT AS A CONFLICT WITH COUNCIL MANAGER FORM OF GOVERNMENT IF WE'RE WORKING TOGETHER ON, UM, YOU KNOW, THIS TYPE OF THING. AS LONG AS THE WHOLE COUNCIL IS AWARE OF WHAT'S GOING ON. DEREK, DO YOU, DO YOU WANNA WEIGH IN? DEREK? OH, SORRY, SORRY, I MISSED PART OF THE CONVERSATION. I WAS IN THE RESTROOM. BUT I MEAN, THIS IS A, CREATING ANOTHER DEPARTMENT. ARE THEY'RE NOT OUTSIDE AUDITORS THAT COULD DO CLOSEST TO ME. JUST YELL IT. . YES, SURELY THERE ARE, RIGHT? WE DO ALL HAVE TO SEPARATE YOUR MIND FROM THE DIFFERENCE BETWEEN A FINANCIAL AUDIT AND PERFORMANCE AUDITS. THERE ARE DIFFERENT SKILLS AND THERE ARE DIFFERENT ACTIVITIES. UM, BUT YES, THERE ARE SERVICES AVAILABLE AND THEN WRITE ALL THESE QUESTIONS THAT WE ASK AND THAT THE CITY MANAGER WANTS TO ASK. AND EVERY CITY THAT'S EVER DONE, A INDEPENDENT AUDITOR HAS FACED THE SAME QUESTIONS AND THEY'VE ANSWERED 'EM ONE WAY OR ANOTHER. UM, SO THERE, THERE, THERE ARE WAYS TO STRUCTURE THESE THINGS TO GET 'EM TO WORK. CONTRACT IS DEFINITELY ONE WAY, PROS AND CONS. IF YOU DON'T HAVE A LOT OF ACTIVITY, A CONTRACT AUDITOR MIGHT BE A LESS EXPENSIVE SOLUTION. UM, THEY DON'T TEND TO BUILD THE RELATIONSHIPS AND EMBED THEMSELVES AND BECOME A MEMBER, A RESOURCE IN THE CITY THAT AN IN INTERNAL PERSON WOULD. AND SO IT JUST ALL DEPENDS ON WORKLOAD AND WHAT YOU'RE LOOKING FOR. I'M NOT IN FAVOR OF CREATING ANOTHER DEPARTMENT, UM, BUT I DO LIKE THE IDEA OF, UH, YOU KNOW, WE CAN BRING IN AN OUTSIDE PERSON TO LOOK AT IT AND WE LIKE WHAT THEY'RE DOING AND WE THINK WE'RE GETTING BENEFIT FROM VALUE FROM IT, WE CAN CONTINUE IT. OTHERWISE WE CREATE A NEW DEPARTMENT AND THEN WE'RE LIKE, EH, THEN NOW WE'VE GOT A WHOLE DEPARTMENT TO UNWIND OR TO GIVE THEM SOMETHING ELSE TO DO OR, OR WHATEVER. SO I MEAN, I, I THINK I WOULD BE IN FAVOR OF THE RETAINING PERFORMANCE AUDITOR, IS THAT WHAT YOU CALL IT? YEAH. SO YES, I WOULD, I WOULD BE IN FAVOR OF THAT. AND IT SHOULD BE INDEPENDENT FROM EVERYTHING SO THAT THERE'S NO, NO ONE'S INFLUENCING ANYTHING. THEY'RE JUST LOOKING AT IT AND TELLING US THIS IS THE WAY IT IS. NOT TELLING US WHAT WE WANT TO HEAR, BUT WHAT WE NEED TO HEAR. SO I WEIGH IN, I SUPPORT PHASE ONE. I, UH, I DID SOME RESEARCH AND I LOOKED AT CITIES THAT HAVE AN INDEPENDENT AUDITOR. THEY ARE SEATTLE, SAN JOSE, PORTLAND. THEY ARE HUGE CITIES. AND IT'S EXPENSIVE BECAUSE IF SOMEBODY'S GONNA REPORT TO COUNCIL, THEY HAVE TO BE AT A LEVEL THAT THEY CAN BE INDEPENDENT AND THEY CAN'T BE. WE MIGHT HAVE A STAFF PERSON WHO HAS THOSE CAPABILITIES, BUT ARE THEY, THEY USUALLY WOULD HAVE A MANAGER WHO WOULD MANAGE THEM. AND HOW WOULD COUNCIL MANAGE THIS PERSON UNLESS THEY WERE AT THE LEVEL OF A CITY MANAGER AND THE JUDGE AND THE CITY ATTORNEY. SO IT BECOMES A REALLY EXPENSIVE, AND, UH, AND I LOOKED AT MEDIUM SIZED CITIES AND I LOOKED AT CITIES, SMALLER CITIES, AND UH, AND THEN I ASKED MY FRIEND CHAT, GPT FOR THEIR ADVICE COUNCIL, AND THEY SAID THAT, UH, FOR A CITY LIKE SEDONA, AND IT WAS SEDONA, NOT A SMALL CITY, IT WAS SPECIFICALLY SEDONA TO THE DEGREE THAT THEY KNOW ABOUT SEDONA, THAT, UH, IT MADE MORE SENSE TO HAVE A CONSULTANT. 'CAUSE THEN YOU ONLY PAY FOR WHAT YOU USE AND YOU DON'T HAVE TO HAVE A DEPARTMENT. UH, BUT THEY ALSO TALKED ABOUT PROS AND CONS, WHICH I THINK ARE INTERESTING THAT WE COULD CONSIDER AS TO WHETHER A, UH, THE FUNCTION REPORTS WITHIN LIKE THE FINANCE DEPARTMENT, UH, OR INDEPENDENT DIRECTLY [04:45:01] TO THE COUNCIL, AND HOW THE STAFF VIEWS THAT AND WHETHER IT APPEARS TO BE PUNITIVE TO THE STAFF OR SOME KIND OF, UH, OF AN OVERSIGHT BECAUSE COUNCIL THINKS THEY'RE NOT DOING THEIR JOBS PROPERLY VERSUS, UH, SOMEBODY WHO WORKS WITH STAFF. ANYWAY, THERE'S LOTS OF QUESTIONS TO CONSIDER. AND, UH, AND I THINK YOU ALL, IF YOU, IF YOU WANT, I'M COMFORTABLE WITH ESTABLISHING A SUBCOMMITTEE OF THE COUNCIL, KURT, THAT DOESN'T VIOLATE ANYTHING, RIGHT? 'CAUSE IT'S NOT ONGOING. IT WOULD BE LIKE A BEGINNING AND MIDDLE AND AN END, RIGHT? SO YEAH, THERE'S NO LIMIT ON TIME. YEAH. SO JUST, JUST NOT AN ONGOING LIKE WE HAD WITH THE AGENDA COMMITTEE, REMEMBER, IT WOULD BE, IT WOULD BE A PUBLIC BODY, PUBLIC BODY, MEANING WE HAVE TO HAVE STAFF TAKING MINUTES. UH, OR YOU CAN JUST RECORD IT, BUT IT'D HAVE TO HAVE THE AGENDA AND A NOTICE PRIMARILY. OKAY. UH, AND WE CERTAINLY DIDN'T DO THAT FOR THE CHAMBER. THAT WAS, WE HAD, YEAH, WE DIDN'T RECORD IT, BUT WE HAD MINUTES. UH, BUT, AND THEN YOU COME BACK AND LOOK AT ALL THESE THINGS AND, YOU KNOW, WE CAN HAVE THAT CONVERSATION. TO ME AT THAT POINT, IF A, IF THERE IS A PHASE TWO, THEN WE CAN DEBATE WHAT THAT WOULD LOOK LIKE AND HOW IT SHOULD BE STRUCTURED AND WHAT THE COST WOULD BE. BUT I THINK PHASE ONE IS, TO ME, IT'S A NO BRAINER THAT WE SHOULD DO THAT. WE HAVE CONS. OH, WE CAN'T VOTE. OKAY. WE, WE WILL TALK ABOUT THIS MORE TOMORROW UNLESS ANYBODY HAS ANY OTHER COMMENTS QUESTION. OKAY. INTRODUCING IT OR YOU WANT ME TO JUST JUMP? OKAY. ALL RIGHT. SO THE NEXT ONE, UH, IS A TOPIC THAT, UH, I PROPOSED AND IT, IT WINDS UP KIND OF BEING TWO. AND, UH, WE TALKED ABOUT BOTH OF THESE YESTERDAY AT, AT QUITE SOME LENGTH. THE FACT THAT, UH, ENGAGEMENT IN THE COMMUNITY IS SOMETHING THAT, UH, EVERYBODY SAW AS IMPORTANT AND SAW IT AS OVERARCHING AND NOT JUST A PRIORITY ON ITS OWN. SO, UM, I DON'T WANT TO BEAT THAT TO DEATH NOW TODAY. UM, IF YOU LOOK AT THE ENUMERATED ITEMS THAT I HAD SUGGESTED, THE FIRST THREE ESSENTIALLY REPRESENT SOME IDEAS ON HOW TO IMPROVE ENGAGEMENT WITH THE COMMUNITY. AND I WILL POINT OUT THAT SEVERAL OF THE GROUPS YESTERDAY ALSO DID MENTION THE FACT THAT WE GOTTA GET OUT IN FRONT OF OUR PROJECTS BEFORE THEY'RE TO A POINT WHERE PEOPLE ARE SHOWING UP AT THE 11TH HOUR HAVING A HEART ATTACK. AND SO I THINK, YOU KNOW, ONE OF THE WAYS OF DOING THAT IS USING, UH, WEDNESDAY COUNCIL WORK SESSION TIME. AND MY SUGGESTION WAS, UH, A BIMONTHLY, SO BASICALLY ONE OUT OF FOUR, UH, COUNCIL WORK SESSIONS COMMIT TO A DIFFERENT FORMAT, KIND OF LIKE WHAT WE WERE DOING WHEN WE WERE WORKING AT TABLES YESTERDAY. BUT RATHER THAN IN HERE, GO TO THE LIBRARY OR SOMETHING LIKE THAT AND HAVE A STAFF MEMBER AND A COUNCIL MEMBER AND HAVE ADVERTISED, YOU KNOW, HERE'S ONE OR TWO TOPICS THAT WE SPECIFICALLY WANT TO GET INPUT ON FROM THE COMMUNITY THAT ARE GOING TO BE UPCOMING, UH, PROJECTS, PROGRAMS, INITIATIVES, OR JUST THINGS WE WANT TO HEAR FROM THE COMMUNITY ABOUT. AND SO HAVE SOME STRUCTURE AROUND THAT, BUT THEN ALSO HAVE SOME, UM, OPEN MIC TIME AT THE TABLES THAT PEOPLE CAN JUST SIMPLY TALK WITH US ABOUT OTHER IDEAS OR OTHER ISSUES, CONCERNS THEY HAVE. BECAUSE WE OFTEN HEAR THAT THE, UH, PUBLIC FORUM THREE MINUTES, YOU KNOW, IS INADEQUATE IN A LOT OF WAYS, RIGHT? WE CAN'T RESPOND UNLESS WE'VE BEEN SPECIFICALLY ADDRESSED, THINGS LIKE THAT. SO THAT'S ONE OPPORTUNITY. AND THEN, UM, YEAH, YOU'LL, YOU'D THINK I LIVED IN PARK CITY OR SOMETHING, BUT IT, IT IS A PLACE THAT I, I LOVE AND HAVE STUDIED A GOOD BIT. AND, UH, PETE AND I ACTUALLY MET WITH, UH, A COUNCIL MEMBER AND, UH, THE CHAMBER CEO WHEN WE WERE THERE IN SEPTEMBER. AND ONE OF THE INNOVATIVE THINGS THEY DO THERE IS THEY LITERALLY HAVE A FIVE DAY A WEEK RADIO PROGRAM ON THE LOCAL NPR STATION, WHICH I'M CERTAINLY NOT SUGGESTING WE WOULD FOLLOW ANYTHING ALONG THOSE LINES THAT, UH, IN DEPTH. BUT EVEN HAVING JUST A, A ONCE A WEEK, UH, VIDEO PODCAST THAT, UH, COVERS TOPICS THAT ARE GOING TO BE COMING UP, THINGS THAT ARE GOING ON IN THE COMMUNITY AND CAN BE ROTATED AROUND AMONGST COUNCIL AND STAFF TO ACTUALLY BE THE ONES THAT ARE, UH, SHARING THE INFORMATION. UH, I'M TOLD THAT THAT IS VERY MUCH, UH, VALUED IN THE, THE PARK CITY COMMUNITY. AND THEN THE, THE [04:50:01] THIRD AREA WAS JUST WANTING TO SEE THERE BE MORE OPENNESS TO, UH, RESIDENTS SLASH STAKEHOLDER WORKING GROUPS. NOT COMMISSIONS, UH, BUT WORKING GROUPS THAT HAVE A BEGINNING, MIDDLE, AND AN END, UH, TO WORK ON SPECIFIC TOPICS THAT, UH, ALLOW FOR MORE PEOPLE TO PROVIDE INPUT. UH, AND AGAIN, THAT JUST SEEMS VERY CONSISTENT WITH, UM, WHAT WAS TALKED ABOUT YESTERDAY A GOOD BIT. SO THAT'S KIND OF THE FIRST PIECE. UM, THE SECOND PIECE IS ABOUT COMMUNITY. AND YOU KNOW, ON THE OTHER SIDE OF THE BOARD THERE WAS THE DETAIL ON COMMUNITY, OR MAYBE IT GOT ERASED, I'M NOT SURE. UM, A LOT OF WHAT WAS TALKED ABOUT ON COMMUNITY YESTERDAY WAS FIREWISE, PUBLIC SAFETY, SOME THINGS LIKE THAT. BUT COMMUNITY ALSO IS, UM, WAYS THAT, THAT PEOPLE DO FIND COMMUNITY MORE BROADLY THAN JUST IN THEIR NEIGHBORHOOD, UH, WORKING ON, UH, FIREWISE FOR INSTANCE, WHICH FULLY SUPPORTIVE OF THAT OF COURSE. UM, AND SO, YOU KNOW, AS I'VE BEEN OUT TALKING WITH PEOPLE ABOUT, HEY, WHAT WOULD, WHAT WOULD YOU LIKE THE CITY TO DO MORE OF INSTEAD OF DO LIKE THEY USED TO DO? UM, YOU KNOW, OFTENTIMES IT'S, HEY, WE WANT TO FEEL LIKE WE'RE IMPORTANT OR MORE IMPORTANT OR MORE VALUED, OR THAT WE'RE MORE OF A PRIORITY. AND IT'S LIKE, OKAY, WELL TELL ME, WHAT DOES THAT LOOK LIKE THEN TO YOU? AND THE MOST CONSISTENT, UM, ANSWER I HEAR IS EVENTS AND NOT NECESSARILY EVENTS THAT THE CITY WOULD HOST, BUT THE CITY CAN AT LEAST BE SUPPORTIVE OF. UM, AND AGAIN, IT COULD BE A MATTER OF FOSTERING WORKING GROUPS THAT HELP, UH, WORK ON A TOPIC SUCH AS THIS. BUT I'VE HEARD THINGS LIKE, OH MY GOSH, I WISH, YOU KNOW, WE HAD JAZZ ON THE ROCKS AGAIN. UH, OTHER TYPES OF, YOU KNOW, MUSIC RELATED EVENTS OR PERFORMING ARTS OR CULTURAL EVENTS LIKE MOUNTAIN BIKING, RIGHT, PETE, UM, . ANYHOW. SO, UH, PLENTY OF DEFINITION THAT CAN BE ADDED AROUND THAT. BUT THOSE ARE THE TWO AREAS THAT, UH, JUST REALLY HAVE BEEN ON MY MIND QUITE A BIT, ESPECIALLY SINCE THE LEAD CONFERENCE WHERE WE HEARD ABOUT ENGAGEMENT AS INFRASTRUCTURE AND HOW IMPORTANT AND VALUABLE THAT'S BEEN TO A NUMBER OF COMMUNITIES. SO THANK YOU. HAPPY TO ANSWER ANY QUESTIONS. SO, SO, UM, I'M CERTAINLY IN SUPPORT OF 0.1 AND 0.3 ON YOUR LIST, AND I JUST WANNA HEAR FURTHER DISCUSSION AROUND TWO AND FOUR RESERVING JUDGMENT, SO WE HAVE MORE DISCUSSION ON THAT. BUT ONE AND THREE, I'M ABSOLUTELY ON BOARD FOR, AND I KNOW, AND THAT'S CHOMPING AT THE BIT FOR A NEW COMMUNICATIONS MANAGER TO START IN. YEAH. SO CERTAINLY THIS IS ALL RELEVANT TO THAT INDIVIDUAL. I, I WOULD, I AM CURIOUS AS TO WHY YOU DIDN'T SAY TWO ME. YEP. UM, BECAUSE I DON'T KNOW THE WORKLOAD OR WHAT THE NEW COMMUNICATIONS MANAGER WOULD WANT TO DO, IF THAT'S SOMETHING IN THEIR WHEELHOUSE. MAYBE LITTLE BETTER IS A BETTER WAY. I JUST FEEL IT'S PREMATURE TO, TO TAKE A STAND ON TO, TO, THERE MIGHT BE ANOTHER IDEA, A BETTER IDEA. I, I, I'M ALWAYS LOOKING FOR WAYS TO IMPROVE AND ENHANCE COMMUNICATION OUT. I JUST DON'T KNOW IF THAT'S IT BASED ON THE LIMITED INFORM WE'RE REVIEWING RIGHT NOW. YEAH. YEAH. THANK YOU. I APPRECIATE THAT. AND, AND I DO THINK THAT UNDERLIES LOTS OF HOW I FEEL ABOUT MANY OF THESE THINGS IS WE'VE GOT A NEW PERSON COMING ON WITH SOME NEW IDEAS AND SOME JUST LIKE, WE GAVE TONY SOME TIME IN THE SADDLE TO THINK ABOUT WHAT NEEDS TO BE DIFFERENT AND, AND MOVE FORWARD. BUT THERE'S CERTAINLY INTEREST IN, IN MY STANDPOINT AS WELL, ABOUT IMPROVING COMMUNICATION WITH OUR RESIDENTS FOR SURE. AND THAT'S THE GOAL I THINK OF, YOU KNOW, THESE, THESE ELEMENTS. THANK YOU BOTH. UM, I'M NOT MARRIED TO LIKE NUMBER TWO, FOR INSTANCE. I'M PRETTY MARRIED TO NUMBER ONE AND NUMBER THREE, LIKE, I REALLY THINK WE NEED TO DO, NUMBER ONE, LIKE, I THINK THAT SHOWS A REAL COMMITMENT TO ENGAGING WITH OUR COMMUNITY. SO, YOU KNOW, YESTERDAY OUR GROUP HAD A MUCH BROADER VIEW OF COMMUNITY THAN WHAT WOUND UP ON THIS SLIDE. AND IT WASN'T ABOUT, AND I, AND I GET THAT IT, THIS WAS A ONE YEAR PLAN. AND SO LOOKING FOR, FOR PROJECTS WHERE WE COULD ACHIEVE SOMETHING IN THAT TIMEFRAME, BUT OUR GROUP REALLY [04:55:02] WANTED A CHANGE IN HOW THE CULTURE OF HOW WE, AND I KEEP USING THIS WORD CULTURE, BUT I DO THINK IT'S A CULTURE SHIFT. AND I KNOW ON THIS THE, UH, THE CARDBOARD OR WHATEVER IT WAS WHEN WE WROTE OUR OWN PLANS, I SAID, ELIMINATE THE FEAR OF, OF ENGAGING WITH RESIDENTS. 'CAUSE I DO BELIEVE THAT THERE IS A CERTAIN DEGREE OF TREPIDATION. UH, AND, UH, AND I, AND I THINK THAT REALLY, I THINK ANNETTE, YOU KNOW, WAS ONE OF THE THINGS WHEN WE INTERVIEWED YOU THAT WE TALKED ABOUT, AND YOU CERTAINLY DON'T HAVE THAT TREPIDATION, UH, BUT IT TAKES A WHILE FOR IT TO PERMEATE THROUGHOUT THE ORGANIZATION. AND, UH, AND SO THE WHOLE IDEA OF EVEN WITH THIS CHAMPIONS, WE ADOPT THAT, TO ME, A RESIDENT NEEDS TO BE A PART OF IT. IT'S JUST NOT, IT'S NOT JUST COUNCIL AND STAFF, COUNCIL STAFF AND THE PUBLIC, SO RESIDENT BUSINESS PERSON, DEPENDING ON WHAT THE TOPIC IS. UH, WORK GROUPS. WE USED TO HAVE A LOT MORE WORK GROUPS AND WE DON'T HAVE AS MANY ANYMORE. AND I THINK PEOPLE FELT ENGAGED. WE, WE TALKED ABOUT YESTERDAY, THE ACADEMY. SO YOU GO TO THE ACADEMY, WHICH SHOWS A COMMITMENT, RIGHT? EIGHT WEEKS OF A COMMITMENT IS A BIG, PRETTY STRONG COMMITMENT. SOME OF THE MEMBERS THEN GO ON THE BUDGET WORK GROUP OR THEY GO SOMETHING ELSE, BUT THERE'S NOT MUCH ELSE THEY CAN GO TO. AND, UH, AND THEN EVENTUALLY WE HOPE THAT THEY WILL APPLY FOR COMMISSIONS OR RUN FOR COUNCIL, RIGHT? UH, AND SO HOW DO WE GET PEOPLE THERE? AND WE TALKED ABOUT TRACKING VOLUNTEERISM AND WHETHER WE HAD MORE VOLUNTEERS OR LESS VOLUNTEERS, BUT I WOULD, I THINK OF IT MUCH BROADER THAN THAT. SO I WOULD LIKE TO SEE THAT YOUR IDEAS, UH, VICE MAYOR INCORPORATED INTO THE PRIORITY OF COMMUNITY THAT WE HAVE ALL SAID WAS REALLY IMPORTANT TO US. SO TO BROADEN WHAT OUR, WHAT THAT LIST, WHICH HAS BEEN ERASED, I WENT TO LOOK FOR, UH, THAT, THAT WE HAD ON THAT, ON THAT LIST YESTERDAY TO INCORPORATE THESE CONCEPTS. I THINK EVERYONE KNOWS THAT. I THINK ALL OF THESE IDEAS ARE FINE. I THINK, YOU KNOW, WHATEVER OUR NEW COMMUNICATIONS MANAGER COMES UP WITH WILL PROBABLY ALSO BE REALLY INTERESTING. UM, I'M NOT REALLY OPPOSED TO, UM, THINGS LIKE, UH, THE PODCASTS, UM, IN A WAY WE ALREADY DO THEM. WE JUST PUBLISH THEM IN THE RED ROCK NEWS. WE HAVE PEOPLE PUBLISH FROM THE CITY, UH, AN ARTICLE ABOUT WHAT'S GOING ON. THIS IS JUST DOING IT SORT OF VERBALLY OR VISUALLY IF IT'S A, IF IT'S A VIDEO. UM, BUT I THINK COMMUNICATING IS, IT'S OUR JOB AND I THINK HE ACTUALLY HAD IT DOWN AS A VALUE, RIGHT? COMMUNICATION HAS TO BE SOMETHING WE THINK ABOUT WITH EVERYTHING, AND THE WAYS IN WHICH WE COMMUNICATE WILL BE DIFFERENT BASED UPON WHAT IT IS WE'RE TRYING TO COMMUNICATE AND TO WHOM WE'RE TRYING TO COMMUNICATE. AND I THINK THAT THAT'S OKAY, BUT I THINK, UM, THE MINUTE WE STOP COMMUNICATING, PEOPLE WILL MAKE UP IN THEIR HEADS WHAT IT IS WE'RE DOING. AND, UM, THAT MIGHT NOT BE REALLY BE WHAT WE'RE DOING AND IT COULD FORCE US INTO A POSITION WHERE WE END UP DOING SOMETHING WE DIDN'T WANT TO DO OR WE WEREN'T THINKING WAS USEFUL OR WHATEVER IT MIGHT BE. SO I THINK THE MORE OPEN THE COMMUNICATION, THE JUST THE BETTER IT IS FOR EVERYONE, UM, IN OUR COMMUNITY, INCLUDING THE PEOPLE WHO ARE WORKING ON OUR BEHALF. I SHOULD MENTION THAT, UM, KAZM REACHED OUT TO US A FEW MONTHS AGO ABOUT DOING A WEEKLY RADIO SHOW. THEY OFFERED THAT TO US, AND IT KIND OF GOT LOST IN THE COURSE OF THINGS THAT HAPPENED. UH, IF WE WERE INTERESTED IN THAT, I'M SURE WE COULD ENGAGE IN THAT CONVERSATION WITH THEM. AND I CAN'T GIVE YOU THE DAY, THE TIME, ANY, IT, IT, THIS WAS VERY HIGH LEVEL, BUT THEY WERE INTERESTED IN HAVING, UH, THE CITY PARTICIPATE. AND ANNETTE AND I TALKED ABOUT IT BRIEFLY, WHETHER YOU KNOW HOW THAT WOULD WORK. WE, THERE'S NO ANSWERS TO ANY OF THIS BECAUSE WET REALLY PURSUE IT TO THAT LEVEL, BUT IF WE WERE INTERESTED IN IT, [05:00:01] WE COULD PURSUE IT. THAT'S IT. ANY OTHER COMMENTS FROM ANYBODY? THERE'S OUR CITIZEN ENGAGEMENT LEADER, HE'S HERE. YOU DO HAVE TWO VOLUNTEERS THAT ARE CURRENTLY ON OUR BUDGET WORK GROUP, AND I THINK BOTH HAVE BEEN THROUGH THE CITIZEN ACADEMY AS WELL. AND I DON'T KNOW IF THEY HAVE ANYTHING THEY WANT TO SAY ON . YOU DON'T HAVE TO SAY ANYTHING AT ALL. I MEAN, I AM PUTTING YOU ON THE SPOT, BUT YOU ARE MAKING AN EFFORT TO BE HERE TODAY FOR THIS DISCUSSION. AND LADIES FOR THANK YOU. THIS IS ON. YEAH. OKAY. UM, YES, THANK YOU FOR THE OPPORTUNITY. I WAS, MY BACKGROUND IS ACCOUNTING AND MARKETING AND, UM, SO I'M SITTING HERE SQUIRMING, WANTING TO HAVE SOME INPUT, NOT BEING SURE ABOUT WHAT CHANNEL I SHOULD PURSUE TO HAVE INPUT. UM, I'M AN OUT OF THE BOX THINKER AS WELL, WHICH DOESN'T SQUARE REAL WELL WITH ACCOUNTING. THEY THEY SOMETIMES DON'T LIKE YOU TO BE CREATIVE IN ACCOUNTING. UM, BUT I THINK, I THINK THERE ARE SOME WAYS TO FUND THE, UH, COMMUNITY SERVICE PROVIDER CONTRACTS THAT MAYBE YOU HADN'T THOUGHT ABOUT, WHICH IS HOW ABOUT SPEAKING TO YOUR CONCERN ABOUT THEM GETTING LAZY ABOUT FUNDRAISING? HOW ABOUT HAVING A BASE AND THEN HAVING A FUND THAT WOULD BE A MATCHING FUND. SO YOU'D HAVE KIND OF A HYBRID, UM, FUNDING MODEL, UM, THAT WAY THEY STILL KNOW THEY GOTTA GO OUT AND RAISE MONEY, BUT THEY HAVE A CUSHION, SO TO SPEAK. UM, I THINK I KNOW A LOT OF PEOPLE THAT DON'T ENGAGE WITH THE CITY, AND I THINK PART OF THE REASON IS THEY HAVE FELT LIKE NO MATTER WHAT THEY DID, THEY JUST WEREN'T BEING HEARD. SO I THINK YOUR IDEA OF HAVING A, A MEETING REGULARLY WHERE THE TOPICS ARE, UM, ANNOUNCED AHEAD OF TIME AND, UM, RESIDENTS HAVE AN OPPORTUNITY TO COME AND ENGAGE, UM, THAT THAT'S A TWO-WAY THING. THAT NOT ONLY ARE YOU HEARING THE COMMUNITY, BUT THEY'RE HEARING BACK FROM YOU YOUR REASONING ABOUT WHAT YOU'RE DOING OR WHAT YOU'RE NOT DOING. AND I THINK THAT'S PART OF THE COMMUNICATIONS GAP IS THAT THERE'S NOT ENOUGH INFORMATION ABOUT THE WHYS. THERE'S MAYBE ENOUGH INFORMATION ABOUT THE WHATS BUT NOT ABOUT THE WHYS. CAN YOU STATE YOUR NAME? OH, YES. UH, MY NAME IS JOLENE PEARSON AND I LIVE IN WEST SEDONA OFF, UH, OKAY. AND I'M ED KETTLER AND I LIVE IN SEDONA. SO, UM, COUPLE THINGS. I DID SOFTWARE METRICS, SO, AND ALSO ERP IMPLEMENTATION. SO, UM, PART OF, WHILE YOU'RE DOING YOUR ERP PLANNING AND STUFF, IF YOU COULD PLAN ON AT LEAST WHAT YOUR CORE METRICS ARE GONNA BE UP FRONT AND GET THEM BUILT IN, UH, AS PART, THAT WAY YOU'RE NOT HAVING TO GO BACK AND REVERSE ENGINEER A LOT OF THIS STUFF. SO THINK THROUGH IN FRONT OF WHAT YOU'RE DOING. UH, YOU KNOW, CERTAIN THINGS, THERE ARE FINANCIAL METRICS, YOU KNOW, ACCOUNTING IS BASICALLY BARBARA FINANCIAL METRICS. OKAY. UM, BUT THERE ARE THINGS THAT, THEY'RE OPERATIONAL METRICS THAT, YOU KNOW, FROM A HOW LONG DOES IT TAKE FOR ME TO GET A PERMIT THROUGH THE PERMITTING PROCESSES AND HOW MANY RETRIES THOSE KINDS OF THINGS FROM A CUSTOMER FACING. AND WHAT FRUSTRATES PEOPLE IS IT TAKES TOO LONG TO GET THINGS THROUGH. SO, BUT THAT'S A PERCEPTION, BUT IF IT, THEY DIDN'T DO IT RIGHT TWO TIMES, WHO'S, YOU KNOW, WHOSE FAULT WAS IT? OKAY. [05:05:01] SO TRYING TO UNDERSTAND MORE OF WHAT'S GOING ON IN THOSE THINGS TAKES A BIT OF, AND IT'S GONNA BE BY SECTION BY SECTION, BECAUSE NOT EVERYBODY'S CUSTOMER FACING. OKAY? SO IT'LL BE DIFFERENT METRICS, BUT WHAT ARE THE CORE ACROSS ALL THE DEPARTMENTS YOU WANNA MEASURE AND THEN DRILL DOWN INTO OPERATIONAL METRICS ON WHAT YOU'RE DOING. UM, FROM A, I LIKE THE COMMUNITY ENGAGEMENT ONE, UH, THAT VICE MAYOR FOLTZ CAME UP WITH. UM, I THINK ALSO IS GET AHEAD OF YOUR PROJECTS. OKAY? I DON'T, YOU KNOW, THERE'S A LOT OF MYSTERY AND I'LL CALL THE FUD FACTOR, FEAR, UNCERTAINTY AND DOUBT ABOUT WHAT'S GOING ON. UH, LACK OF REALLY CLEAR PROJECT THINGS, ESPECIALLY IN BIG CAPITAL PROJECTS. WHAT COSTS THREE TIMES WHAT YOU SAID IT WAS GOING TO FIVE YEARS AGO. WELL, WHAT ARE, WHAT IS THE TRUE STORY ON THE CONSTRUCTION INFLATION THINGS AND STUFF LIKE THAT IS THAT IF YOU, I, I KNOW THIS WILL BE PAINFUL, BUT GO LOOK AT NEXTDOOR AND SEE WHAT PEOPLE ARE COMPLAINING ABOUT AND WHAT THEY'RE, WHY THEY'RE COMPLAINING. DO A LITTLE BIT OF, AND THEN FIGURE OUT WHAT, HOW COULD I HAVE COMMUNICATED DIFFERENTLY SO THAT THAT PROBLEM WOULDN'T HAVE EXISTED? OKAY. NOT THAT YOU'RE GONNA EVER GET A HUNDRED PERCENT, I MEAN, BUT EVEN A 50% REDUCTION BECAUSE, YOU KNOW, THERE'S NO SUCH THING AS OVER-COMMUNICATING IN MY MIND, ESPECIALLY IN A PUBLIC SECTOR PERSPECTIVE. UM, THE OTHER THING I TALK ABOUT, UM, WHEN WE'RE TALKING ABOUT THIS PART IS THE ECONOMY, THE DEVELOP, ECONOMIC DEVELOPMENT AND STUFF IS, THERE'S A SYSTEM OF SYSTEMS AROUND THIS WHOLE ECOLOGY OF WHAT'S GOING ON HERE. YOU KNOW, IT'S LIKE WHICH TYPE OF BUSINESSES NEED HAVE A NEED AND HOW CAN WE MEET THAT NEED AND HOW DOES IT INTERACT WITH THE SCHOOL SYSTEM? HOW DOES IT INTERACT WITH WHAT CAPABILITIES WE MIGHT NEED TO BUILD AS A CITY TO HELP DEVELOP THAT SOLUTION? AND THEN HOW IT FEEDS BACK IN. BECAUSE ONE OF THE THINGS WE GOTTA LOOK AT IS, YOU KNOW, MY GRAY HAIR, YOU KNOW, I PROBABLY REPRESENT PROBABLY NEAR THE MEDIAN AGE OF WHAT'S GOING ON. AND IF WE DON'T GET THAT MEDIAN AGE DOWN THROUGH THE ECONOMIC DEVELOPMENT AND OTHER PROGRAMS AND TRAINING AND OPPORTUNITY IS THE COMMUNITY'S GONNA BECOME A RETIREMENT HOME. AND, UH, YOU KNOW, WITH A LOVELY VIEW. SO HOW DO WE, YOU KNOW, LOOK AT THESE THINGS AS A SYSTEM OF SYSTEMS AND OPERATE TO GET AN OPTIMUM SOLUTION? BUT I THINK IT'S GONNA BE THE PEOPLE THAT ARE MORE REMOTELY EMPLOYED, NOT NECESSARILY THE RETAILERS AND STUFF WE HAVE HERE THAT ARE GONNA HELP DRIVE THAT DIRECTION BECAUSE THEY TEND TO BE YOUNGER AND THEY'LL HELP DRIVE WHAT THOSE NEEDS ARE. BUT HOW DO YOU ENGAGE WITH THOSE PEOPLE TO FIGURE OUT, YOU KNOW, WHAT IS, YOU KNOW, HAVE THEM COLLABORATE WITH US, YOU KNOW, WHAT DO YOU WANT? HOW CAN WE GET THERE TOGETHER? OKAY. UM, AND I TALKED TO THE CHIEF ABOUT, UM, THE EV SITUATION. UM, THE EVS I THINK ARE GREAT FOR WHAT I CALL THE SEVEN TO SEVEN, YOU KNOW, THE NORMAL DAY-TO-DAY OPERATION STUFF. THE POLICY SAYS EVERYTHING'S ELECTRIC BY 2030, AT LEAST LAST ONE I READ. BUT I THINK FROM AN EMERGENCY VEHICLE PERSPECTIVE, THAT DOESN'T WORK BECAUSE THE FIRST THING THAT I THINK WILL GO, AND IT'S PROBABLY CHANGED SINCE WHAT I READ, BUT THAT'S, UM, BUT I THINK WHAT YOU OUGHT TO LOOK AT DOING IS OUT AT THE, UH, WA WATER TREATMENT PLANT IS PUTTING IN A COMPLEX WHERE YOU HAVE A POWER GENERATION, A FUEL SYSTEM THAT FOR LIKE A WEEK, IF YOU NEEDED TO OPERATE OFF OF THE GRID, PROVIDE POLICE SERVICES AND STUFF, UH, AND A CHARGE CHARGING PLACE, THAT THAT WOULD BE PART OF THE OVERALL EMERGENCY PLAN TO HAVE A CAPABILITY TO KEEP THAT PART OF IT GOING. BECAUSE IF WE DON'T DO BUILDING INSPECTIONS FOR A WEEK, THE WORLD WILL NOT STOP. OKAY? SO THINK ABOUT THAT AS PART OF YOUR OVERALL EMERGENCY PLAN. OKAY. AND I WILL JUST MOUNT MY SOAPBOX , WE DON'T HAVE ANYTHING ABOUT EVS ON OUR AGENDA, SO UNFORTUNATELY WE CAN'T REALLY DISCUSS THAT PIECE, BUT THANK YOU FOR THOSE COMMENTS BECAUSE WHEN WE GET FURTHER IN THE BUDGET PROCESS, EXCUSE ME, I HOPE YOU GET BETTER SOON. YEAH, ME TOO. , THANK YOU BOTH FOR YOUR [05:10:01] COMMENTS. OKAY. OKAY. UM, SO THE NEXT ITEM MAYOR, UH, WAS SUBMITTED BY COUNSELOR HUI HOI, WHO IS NOT HERE TODAY. SHE'S EXCUSED. UM, BUT I BELIEVE, UM, OTHER COUNSELORS HAVE BROUGHT THIS IDEA UP AT DIFFERENT TIMES, AND THAT WAS REALLY, UM, YOU KNOW, CAN WE TAKE A MOMENT AND LOOK AT THE OVERALL TRANSPORTATION MASTER PLAN, WHERE WE'VE BEEN, WHAT WE'VE DONE, WHAT WAS IN THE PLAN, WHAT'S STILL LEFT TO DO ALL OF THAT SORT OF, I CALL IT A RECONCILIATION. UM, AND SO THAT WAS HER SUGGESTION. AND, UH, I JUST PUT IN THAT WE COULD CERTAINLY, UM, AGENDIZE SOMETHING LIKE THAT IN LIEU OF A SIM UPDATE OR WHATEVER TO DO A, A RE JUST A REFRESH ON THE OVERALL TRANSPORTATION PLAN, IF THAT'S OF INTEREST. DIDN'T WE TALK ABOUT THIS YESTERDAY MM-HMM . IN THAT YES, PRIORITY, RIGHT? AND I, I WAS TELLING KURT HARRIS THAT THANK YOU THAT, UM, THAT TRANSPORTATION MASTER PLAN, I THINK WAS FROM 2015, BUT I COULD BE WRONG ON THAT DATE, BUT IT WAS AT LEAST FOUR, IF NOT FIVE COUNCILS AGO. SO, YOU KNOW, THE INSTITUTIONAL MEMORY QUESTION, WELL, THERE'S INSTITUTIONAL MEMORY, BUT THERE'S ALSO HOW, HOW EMOTIONALLY COMMITTED TO ALL OF THOSE ITEMS THIS COUNCIL IS, AND HE SHOULDN'T BE. AGAIN, IT'S, WE NEED TO ADJUST FOR REALITY AND FOR CURRENT EVENTS AND PLANS CAN BE, UH, MODIFIED AND SHOULD BE MODIFIED, I THINK OVER A COURSE OF TIME BECAUSE SITUATIONS CHANGE AND, AND IT'S OKAY TO CHANGE WITH THAT. UH, BUT SOMETIMES WE GET REALLY RIGID, WELL, THIS WAS AN APPROVED PLAN, WE MUST FOLLOW IT EXACTLY AS IT IS WHEN IT MIGHT NOT. AND I'M, I'M NOT SAYING THAT THAT'S OCCURRED, I'M JUST SAYING THAT GENERALLY WHEN IT MIGHT, THERE MIGHT BE REASONS WHY THAT ISN'T REALLY RELEVANT. SO AGAIN, IT'S GO BACK TO MY CULTURE, IT'S THE CULTURE OF GIVING PEOPLE PERMISSION TO BRING UP PROJECTS THAT WE SHOULDN'T DO ANYMORE, OR REVISIONS TO PROJECTS OR WHATEVER, AND NOT BE FEARFUL BECAUSE WE HAVE AN APPROVED PLAN. DO YOU WANT ME TO MOVE ON TO THE NEXT ONE? OKAY. UM, THE NEXT SUGGESTION FROM COUNCILOR HOSNI WAS A REQUEST THAT WE ADD SUSTAINABILITY PERFORMANCE MEASURES TO THE NEW SERVICE PROVIDER CONTRACTS. UM, SHE DIDN'T GIVE A DESCRIPTION OF WHAT THAT COULD LOOK LIKE, BUT IF THAT IS OF INTEREST TO COUNCIL, GIVEN HER CLIMATE ACTION PLAN, WE COULD, UH, TOMORROW YOU COULD GIVE US DIRECTION THAT YOU WANT STAFF TO, UM, DEVELOP SOMETHING THAT GOES INTO THOSE, THE FINANCE DEPARTMENTS IN THE PROCESS OF NEGOTIATING THOSE. RIGHT? NOW, CLARIFICATION, PLEASE. SHE MEANT SUSTAINABILITY IN TERMS OF ENVIRONMENTAL SUSTAINABILITY, OR SHE MEANT SUSTAINABILITY IN TERMS OF ECONOMIC SUSTAINABILITY OF THE PROGRAM. I DUNNO, I I TOOK IT AS SUSTAINABILITY FOR CLIMATE. YEAH. UH, BUT IT'S . YEAH, I'M NOT, I REALLY DON'T, I REALLY DON'T KNOW WHAT'S MEANT ON THIS ONE. SO, SO, UM, IF I COULD RESPOND, WE ACTUALLY HAVE BOTH OF THOSE IN OUR DRAFT NEW, UH, APPLICATION. IT INCLUDES THE, LIKE, THE SUSTAINABILITY OF THE ORGANIZATION BASED ON THEIR BUDGET AND PERFORMANCE OVER THE YEARS AND WHAT PERCENTAGE OF THE BUDGET IS FUNDED. AND THEN WE ACTUALLY HAVE A QUESTION THAT WE ADDED SPECIFICALLY ABOUT, YOU KNOW, HOW ARE, HOW IS YOUR ORGANIZATION SUPPORTING THE CLIMATE ACTION PLAN? IF, YOU KNOW, IF THEY ARE, I DON'T KNOW THAT IT'S A, THAT IT'S A QUESTION THAT WOULD DISQUALIFY THEM, BUT WE DID ADD THAT IN THE DRAFT THAT'S NOT BEEN SENT OUT, AND I THINK ANNETTE'S REVIEWING IT NOW. WELL, SHE'S BEEN SICK, SO PROBABLY NOT. IT'S PROBABLY IN YOUR EMAIL . YEAH. ON THE, ON THE SUSTAINABILITY CLIMATE WISE, I THINK WE NEED TO BE A LITTLE CAREFUL HERE. UM, THE, THE MONIES AS I UNDERSTAND IT, THAT WE, WE GIVE ON OUR CONTRACT PARTNERS DOES NOT COVER CAPITAL IMPROVEMENTS. [05:15:01] IT ONLY COVERS OPERATIONAL, AS I UNDERSTAND IT. I'M LOOKING AT, DO I HAVE THAT RIGHT? I THINK THERE'S SOME OVERLAP, ESPECIALLY WITH THE SEDONA RECYCLES, UM, BY THAT ONE, WE OWN THE BUILDING. UM, SO YEAH, YOU'RE, YOU'RE PROBABLY MOSTLY RIGHT OTHER THAN SEDONA RECYCLES. AND THE REASON I SAY THAT IS WE'D BE THEN ASKING THEM TO USE MONEY THAT THEY HAVE RAISED FOR OTHER PURPOSES TO DO SOMETHING TO CHANGE THEIR BUILDINGS, TO MAKE THEM, UH, MORE SUSTAINABLE ACCORDING TO OUR CLIMATE ACTION PLAN. AND I, I JUST WANNA BE CAREFUL THAT WE AREN'T PUTTING A BURDEN ON THESE FINANCIAL BURDEN ON THESE ORGANIZATIONS IN ORDER TO GET FUNDING THAT THEY CAN'T USE TO ALLEVIATE THE FINANCIAL BURDEN WE'VE JUST PUT ON THEM, IF THAT MAKES SENSE. YEAH. AND I THINK IF IT'S HELPFUL, I COULD REACH OUT TO COUNSELOR HOSSEINI BY EMAIL AND JUST CLARIFY WHAT SHE MEANT BY SUSTAINABILITY BEFORE WE GET TOO FAR DOWN, YOU KNOW, WHATEVER PATH WE THINK IT IS. AND, UM, YOU CAN DISCUSS IT AGAIN TOMORROW. YEAH. UM, OKAY. AND THE LAST ONE THAT COUNCILOR HOSNI ASKED ABOUT, WHICH I BELIEVE STEMS FROM HER TIME ON THE PLANNING AND ZONING COMMISSION AND SOME OF THE DEVELOPMENT PROJECTS THAT SHE SAW, UH, SHE ASKED IF WE COULD DO AN UPDATE ON COUNTY OWNED STREETS WITHIN THE CITY LIMITS DATING TO ANNEXATION IN ORDER TO UNDERSTAND THE CITY'S INTENT FOR REPAIR. AND I THINK WHAT SHE'S TALKING ABOUT, ANY PUBLIC WORKS PEOPLE HERE, AND MAYBE KURT CAN HELP ME, BUT WHAT I THINK SHE WAS TALKING ABOUT WAS, UM, THE CITY TOOK INTO THE STREET SYSTEM OUR TRANSPORTATION SYSTEM, OLD SUBSTANDARD COUNTY ROADS, PROBABLY AT ANNEXATION OR I MEAN, UH, INCORPORATION. AND BECAUSE THEY'RE SUBSTANDARD, THEY HAVE MINIMAL MAINTENANCE WORK DONE ON THEM. AND SO NOW THERE ARE DEVELOP INFILL DEVELOPMENTS HAPPENING ADJACENT TO THESE TYPES OF ROADS, AND THAT'S RAISING QUESTIONS ABOUT WHO'S RESPONSIBLE FOR WHAT. UM, AND SO I BELIEVE SHE'S ASKING TO HAVE, YOU KNOW, A DISCUSSION AT A FUTURE COUNCIL MEETING ABOUT WHAT THAT POLICY IS, SHOULD THE CITY CHANGE THAT POLICY AND INVEST IN THOSE STREETS OR NOT. SO, UM, AGAIN, I CAN, IF YOU WOULD LIKE TO ASK ANY QUESTIONS, I CAN FOLLOW UP WITH HER AND SEE IF THERE'S ANYTHING MORE SHE WANTS TO SAY ABOUT THAT. UM, MY BASIC RECOMMENDATION WAS IF THAT'S A TOPIC OF INTEREST, WHAT WE'RE DOING WITH THESE SUBSTANDARD STREETS, WE CAN EASILY IZE THAT ON A FUTURE COUNCIL MEETING. IF YOU WANT TO GET INTO THAT. COULD THIS BE AS SIMPLE AS YOU DO A LITTLE BIT OF HOMEWORK ON THIS AND WRITE A MEMO AND WE'RE DONE? DOES THIS HAVE TO ACTUALLY TAKE UP COUNCIL AGENDA TIME? I GUESS THE QUESTION WOULD BE, WOULD THE CITY WANT TO ACTUALLY PUT MONEY, PRIORITIZE MONEY INTO UPGRADING AND REPAIRING THESE STREETS? SO I THINK THAT'S PERHAPS WHY SHE RAISED IT AS PART OF THIS BUDGET PRIORITY SETTING. I RECALL ON P AND Z, THESE ISSUES SURFACING, AND IT MIGHT HAVE BEEN JUST GOODROW A COUPLE OF TIMES, BUT I THINK THERE'S OTHER PLACES IN THE CITY AND THE STATEMENT HAS BEEN MADE IN THE PAST ABOUT THESE STREETS ARE KIND OF IN LIMBO. AND I DON'T THINK THAT RESIDENTS THERE REALLY UNDERSTAND, AND I DON'T KNOW THAT COUNCIL REALLY HAS CHOSEN TO HAVE A DECISION ABOUT WHETHER WE'RE GOING TO REALLY ADOPT THEM OR WE'RE JUST GONNA LET 'EM STAY IN LIMBO. AND SO I, I THINK THAT'S THE QUESTION THAT NEEDS TO BE ANSWERED. UM, THIS SOUNDS LIKE SOMETHING THOUGH, THAT IN OUR MEETING, WHEN WE GET TO THE LAST ITEM OF ANY OF OUR REGULAR MEETINGS, FUTURE AGENDA ITEMS, THAT SOMEBODY SHOULD BRING IT UP AND GET IT CALENDARED VERSUS, I DON'T KNOW HOW THIS ENDS UP ON A BUDGET RETREAT PRIORITY LIST FOR DISCUSSION HERE. WELL, IT'S A, THEORETICALLY IT'S A BUDGET I MENTIONED. YEAH. BUT IT'S ONLY TO HAVE THE DISCUSSION AGAIN UPDATED. WHY WOULDN'T WE JUST AGENDIZE THAT, RIGHT? I, I, I THINK WE SHOULD, I, I WOULD ENCOURAGE COUNCILOR HUSSAINI IF I WERE YOU CITY MANAGER, TO BRING IT UP UNDER THAT TOPIC AT THE NEXT MEETING. AND LET'S, LET'S DO IT ACCORDING TO A FORM, RIGHT? , DO WE HAVE ANY LIABILITY, DO WE HAVE ANY LIABILITY SINCE THESE STREETS ARE IN THE CITY OF SEDONA? AND SOME OF THEM ARE, IT'S NOT REALLY CLEAR WHO OWNS THEM. OH, NO, IT'S CLEAR. I HAVE TO KNOW. IT'S THE COUNTY. [05:20:01] YEAH. SO THESE ROADS, UH, GOOD ROADS, ONE THAT COMES UP. KLEIN ROAD IS ANOTHER ONE. UH, THERE'S A COUPLE OTHER ONES. THESE WERE ROADS THAT ARE THE RIGHT OF WAYS. UM, THE RESIDENTS THAT OWN IT, THEY'RE NOT PRIVATE RESIDES, SO THEY'RE OWNED BY THE CITY, BUT THEY WERE NEVER OWNED, OR THEY'RE NEVER MAINTAINED OR CONSTRUCTED BY THE COUNTIES TO BEGIN WITH. SO COCONINO OR YAVAPAI, AND WHEN THE CITY INCORPORATED IT JUST KIND OF INHERITED THESE SUBSTANDARD ROADS AND HAS NEVER TAKEN ACTION ON THEM EITHER. UM, AND SO, UH, ANY LIABILITY TO BE, UH, FAIRLY LIMITED, UM, THE, THE TECHNICALLY THE OWNERS ARE RESPONSIBLE FOR THEM IN THEIR CURRENT STATE, THE THOSE WHO USE 'EM, WHO HAVE EASEMENTS TO USE THEM. UM, BUT THAT'S SOMETHING COUNCIL CAN, UH, EXPAND AND, AND TAKE A LOOK AT. SO, UM, THERE'S, YEAH, I MEAN, OBVIOUSLY ANYTHING WITH THE CITY, THERE'S ALWAYS SOME LIABILITY BUT LIMITED. OKAY. THE NEXT ITEM, UM, WAS SUBMITTED BY COUNCILOR FURMAN, AND I'LL APOLOGIZE THAT IT WAS NOT ON THE INITIAL PACKET THAT WENT OUT, BUT WE DID AMEND THE PACKET AND GOT IT PUBLISHED ON MONDAYS. THANKS, ANNETTE. SO THIS IS, UH, AN IDEA THAT ISN'T NEW. THEY WERE, IT COMES UP EVERY NOW AND AGAIN. I'M ASKING, WE THINK ABOUT IT THIS TIME ONCE AGAIN, UH, IS IS THE ISSUE OF COUNCIL PAY? UH, AND I'M MOTIVATED BY TWO THINGS. ONE IS THAT, UH, NOW BEING ON CITY COUNCIL AND, YOU KNOW, HAVING SOME EXPERIENCE BEFORE, UM, IT'S A REAL JOB. THERE'S REAL TIME THAT'S PUT INTO THIS EFFORT, AND IT'S GREAT THAT WE HAVE PEOPLE WHO ARE WILLING TO VOLUNTEER THEIR TIME. UM, BUT I THINK THAT THERE'S AN OPPORTUNITY COST, AND THAT REALLY RELATES TO THE SECOND ELEMENT, WHICH IS WHAT CAN WE DO TO BROADEN THE POTENTIAL FOR THE FUTURE GENERATIONS TO BE JOINING US YOUNGER, YOUNGER PEOPLE, UM, THAT MAY NOT HAVE THE VOLUNTEER CAPACITY AND THE EARNINGS SAVINGS TO, YOU KNOW, DEDICATE THIS, THIS KIND OF TIME, UH, FOR THIS ACTIVITY. AND I'M INSPIRED BY FLAGSTAFF, THE CONVERSATION THAT THEY HAD WITH, WHEN MAYOR CORA WAS ON HER WAY OUT, SHE LAUNCHED THIS PROCESS AS WELL, AND UP THERE IT PLAYED OUT. AND I THINK IT WAS A REALLY INTERESTING PLAY OUT THAT IT WAS A CITIZENS' COMMISSION THAT STUDIED THE ITEM. AND I DON'T KNOW EXACTLY, BUT I THINK THAT IT'S FAIR GAME FOR THE CITY'S, UH, COUNCIL TO PUT SOME SUGGESTIONS OR GUIDE RAILS OR PARAMETERS OR QUESTIONS TO BE ANSWERED OR WHATEVER, INTO THE PROCESS. AND SO THAT'S WHAT I'M SUGGESTING IS THAT WE DO, UH, PERHAPS AS A COUNCIL DISCUSS IT, SEE IF THERE ARE GUIDE RAILS THAT WE WANT TO, UM, PUT ON LAUNCH A CITIZEN'S COMMISSION TO STUDY THIS ITEM AND COME BACK TO COUNCIL WITH A RECOMMENDATION ABOUT DO WE MAINTAIN THE STATUS QUO WITH PAY AND THE COUNCIL MEMBERS THAT WE ATTRACT, OR DO WE TRY TO DO SOMETHING A DIFFERENT, UH, AND I'M NOT JUST TALKING ABOUT A $50 INCREASE IN PAY, RIGHT? UH, FLAGSTAFF IS IN THE LOW 20 THOUSANDS RIGHT NOW, BUT THEY ARE ON A RAMP TO GET INTO THE THIRTIES, AS, AS I RECALL. I COULD BE WRONG ABOUT THOSE EXACT NUMBERS, BUT IT'S A SUBSTANTIAL DIFFERENCE FROM THE, THE CURRENT TRAJECTORY. AND, UM, AND THAT MIGHT BE A WAY TO GET SOME OF THE VOICES, UH, THAT EXIST IN TOWN THAT PERHAPS AREN'T, CAN'T COMMIT NOW TO THE FINANCIAL HIT. IT IS FOR THE AMOUNT OF TIME THAT COUNCIL'S EXPECTED TO SPEND ON THE ISSUES. YEAH. AND THEN, UH, YEAH, AND I HAD, YOU KNOW, RIGHT. EVEN I'VE FURTHER THOUGHTS ABOUT, AND I THINK YOU ASKED THE CITIZENS COMMISSION TO STUDY IT IF WE'RE ALLOWED TO, BUT EVEN, YOU KNOW, IF YOU'RE GONNA PAY PEOPLE MORE, DO YOU EXPECT DIFFERENT, DO YOU EXPECT MORE OUT OF 'EM SOME WAY? UM, CAN YOU TERM LIMIT, CAN YOU, UH, PUT, UH, THE, UH, THE RESULT OF THIS STUDY OUT FOR A VOTE OF THE CITIZENS? I THINK I UNDERSTAND THAT PERHAPS THE VOTE IS OFF THE TABLE, BUT YOU KNOW, THERE'S QUESTIONS THAT WE SHOULD PUT ON THE TABLE AND GET FOLKS TO ANSWER AND REALLY THINK THROUGH THE ISSUE IN A COMPREHENSIVE WAY. IS THERE A LEGAL ISSUE WITH PUTTING SOMETHING OUT, OUT TO VOTE? KURT? [05:25:01] YEAH, SADLY, , UH, YEAH. SO IN GENERAL, ARIZONA COURTS HAVE RULED AS THE SCOTTSDALE CASE THAT, UM, CITIES CANNOT JUST REFER ANYTHING THEY WANT TO, UH, VOTERS FOR, FOR VOTE. THEY CAN ONLY SEND THING TO THE VOTERS, UH, THAT ARE SPECIFICALLY AUTHORIZED BY STATE LAW. IN THIS CASE, A RS 9 2 74 SAYS THE, UH, COUNCIL CAN SET THE SALARIES OF COUNSELORS, MAYOR AND COUNSELORS, UH, BY ORDINANCE OR RESOLUTION, UM, NO VOTE OPTION THERE. CAN I ASK, KURT, I DIDN'T HAVE A CHANCE TO ASK THIS TO YOU, BUT I, I DON'T KNOW THE HISTORY. HOW DID OUR CITIZENS GET TO VOTE ON 89 A AND WHETHER THAT'S ACQUIRABLE OR NOT, IS THAT AUTHORIZED SOMEWHERE IN THAT THAT WAS INITIATIVE? AN INITIATIVE? SO, YEAH. SO, UH, THANK YOU. YES. I MEAN, SO YEAH. YEAH. THE INITIATIVE CAN BE ON ANYTHING. YEAH. WELL, ARGUABLY THERE'S, THERE'S SOME THOUGHTS THAT THE, IN THE RESIDENTS INITIATIVE POWER IS LIMITED TO WHATEVER THE CITY'S POWER IS ON A GIVEN TOPIC AS WELL. SO, UM, THAT ONE, I ACTUALLY THINK THE HISTORY IS JUST THAT IT WAS QUESTIONABLE WHETHER THEY COULD OR COULDN'T, BUT NO ONE CHALLENGED IT, SO IT JUST GOT LEFT . I MEAN, ANOTHER IDEA THAT I HAD REALLY IS THAT IF IT ALL GOT APPROVED AND SOME STRUCTURE GOT APPROVED, I THOUGHT IT WOULD BE GREAT TO NOT HAVE IT SUBJECT TO ANYBODY UNTIL THEY GOT REELECTED. BUT KURT ALSO TELLS ME THAT THAT MAY BE AGAINST THE STATE LAW IN A CERTAIN WAY, THAT IT ALL HAS TO GO IN EFFECT AT THE SAME TIME. YOU CAN'T DIFFERENTIALLY PAY COUNCIL MEMBERS, I THINK WAS, YEAH. SO ANY, ANY INCREASE HAS TO TAKE EFFECT AT THE, THE BEGINNING OF THE NEXT, UH, AFTER THE NEXT GENERAL ELECTION. UH, BUT THERE IS SOME CASE LAW THAT STATES YOU CAN'T PAY COUNSELORS, LEGISLATORS DIFFERENT PAY FOR THE SAME WORK. UM, YOU CAN MAKE A DISTINCTION BETWEEN THE MAYOR AND COUNSELORS, BUT EVERYONE ELSE HAS TO GET PAID THE SAME. SO THAT IN EFFECT, BUMPS UP THOSE WHO ARE IN THE MIDDLE OF THEIR TERM. RIGHT. RIGHT. SO WE DID A $50 A MONTH PAY INCREASE A FEW YEARS AGO, AND PEOPLE WHO WERE ON COUNCIL DID GET THAT PAY INCREASE AFTER THE NEXT ELECTION. YES. OKAY. SO, PETE, I HAVE A QUESTION FOR YOU. WHEN YOU SAY COMMISSION, DO YOU MEAN, YOU KNOW, IS WORK THAT'S JUST OKAY. YOU DON'T MEAN LITERALLY NO. OKAY. WHATEVER, WHATEVER WORD IS, IS THE RIGHT WORD. WORK GROUP, STUDY GROUP, WHATEVER. ONE TIME FOCUSED ACTIVITY, . BUT, YOU KNOW, A CERTAINLY A QUESTION THAT HAS TO BE ANSWERED IF YOU GO DOWN THIS PATH IS, DOESN'T HAVE TO BE ANSWERED, BUT IT'D BE GOOD TO ANSWER. IS IT, WHAT ARE FUTURE INCREASES? IS THERE A SCHEDULE? DO YOU LOOK TO JUDGES? DO YOU LOOK TO SOMEBODY ELSE? IS IT JUST INFLATION? WHAT TERM? YOU KNOW, I DON'T KNOW. IT'S A QUESTION THAT SHOULD BE PONDERED. DOESN'T NECESSARILY HAVE TO BE ANSWERED, BUT RIGHT. ANYBODY WANNA OPINE ON BRIAN? OH, DEREK, THEN BRIAN. UM, I'M IN FAVOR OF LOOKING AT IT. I, THE ONLY THING I WAS GONNA SAY, I SEE THE CITY MANAGER'S RECOMMENDATION IS THAT WE AGENDIZE IT FOR SEPTEMBER, OCTOBER OF 26. UM, IF WE WANT TO ATTRACT A BIGGER POOL OF CANDIDATES. NOW, I DON'T, IT MAY JUST BE UNREALISTIC, DO IT SOONER, AND THEN THE PEOPLE THAT ARE THINKING ABOUT RUNNING NEXT YEAR WOULD HAVE SOME IDEA. AND OBVIOUSLY IT DOESN'T, YOU SAID IT DOESN'T GO INTO EFFECT UNTIL, UNTIL AFTER THE ELECTION. YES. SO NO MATTER WHEN COUNCIL, UH, WOULD PASS, SO WE, WE HAVE THIS ADOPTED IN CITY CODE, UH, THE, THE MAYOR AND COUNCIL PAY. UH, SO ANY ORDINANCE THAT COUNCIL ADOPTED, WE WOULD JUST SET AN EFFECTIVE DATE OKAY. TO BE AFTER THE GENERAL, UM, DATE OF, UH, ELECTION. SO NEXT NOVEMBER. BUT IF WE WAIT, IF WE WAIT TILL SEPTEMBER, OCTOBER OF NEXT YEAR TO DO IT, THEN THAT'S JUST GONNA MISS THAT, BASICALLY THAT WHOLE ELECTION CYCLE. SO, AND WE MAY WANT TO, I DON'T KNOW, I MEAN, I DON'T WANT TO COMPLICATE HOME RULE BY, OH, THEY'RE GIVING THEMSELVES A RAISE, BUT I MEAN, IF WE REALLY DO WANT TO ATTRACT A BIGGER POOL OF CANDIDATES HAVING THIS DISCUSSION SOONER MAY BE BETTER. THANK YOU. I, I SUPPORT, UH, ESTABLISHING A WORKING GROUP TO LOOK AT THIS. AND, AND INTERESTINGLY, DEREK, RELATIVE TO HOME RULE, I'VE SEEN COMMENTS FROM FOLKS OPPOSING HOME RULE THAT SAY, COUNSELORS SHOULD GET PAID A REASONABLE WAGE FOR THE WORK THAT WE DO. SO I DON'T THINK THAT, UH, UH, THAT IS WAVING A RED FLAG IN FRONT OF FOLKS THAT MIGHT OTHERWISE BE, UH, AMENABLE TO, TO HOME RULE. AND THEN, YOU KNOW, UH, BEING [05:30:01] THREE YEARS IN AND BEING SOMEBODY WHO STILL WORKS, UM, IT IS AN EXCEPTIONAL OPPORTUNITY COST TO SPEND THE TIME, UH, THAT WE DO, UH, AS OPPOSED TO WORKING ON, YOU KNOW, MY BUSINESS, DEREK'S BUSINESS. UM, SO, YOU KNOW, THERE'S A SAYING, THE WORKMAN'S WORTH HIS WAGES. AND, UH, WE ARE EXPECTED TO OPERATE NOT ONLY AT A HIGH LEVEL OF COMMITMENT, BUT TO UTILIZE GOOD BUSINESS ACUMEN, UH, YOU KNOW, UH, MAKE, UH, VERY IMPACTFUL DECISIONS. AND WE'RE MANAGING, YOU KNOW, WHEN YOU LOOK AT AS A BOARD, WHO WE MANAGE AS DIRECT REPORTS AND, YOU KNOW, THE LEVEL OF INDIVIDUAL THAT THEY ARE, UM, I CERTAINLY THINK THAT FOR THE PART-TIME NATURE THAT THIS JOB IS, UM, IT IS WORTHY OF, UH, HAVING A WORKING GROUP LOOK AT WHAT IS REASONABLE. THANK YOU. I'LL JUST ADD NEED, THE OPPORTUNITY COST IS HUGE. I MEAN, I BILL BY THE HOUR, SO EVERY HOUR I'M HERE IS AN HOUR. I'M NOT SITTING, STARING AT A CONTRACT OR WHATEVER AND, AND GETTING PAID, YOU KNOW, MORE THAN, WHAT IS IT? $5 AN HOUR FOR, FOR WHATEVER IT IS. SO I, I THINK WE SHOULD LOOK AT IT. AND IF IT'S NOT A RED FLAG FOR HOME RULE, THEN GREAT. UM, I MEAN, HOME RULE IS SORT OF A DO OR DIE THING AS FAR AS I'M CONCERNED. SO I JUST, I DON'T WANNA ROCK THE BOAT ON THAT, BUT I DO THINK IT'S WORTH LOOKING AT AND AGAIN, DO IT SOONER. SO IF THERE ARE SOME PEOPLE ON THE FENCE WHO WOULD LIKE TO, SOME YOUNG PEOPLE WHO WOULD SAY, I WOULD, IF I, YOU KNOW, COULD OFFSET MY LOSS OF INCOME, THEN, YOU KNOW, BRING HIM TO THE TABLE, MORE THE MERRIER. AND SO I'M GONNA NOW SUPPLEMENT WITH ANOTHER IDEA THAT CONNECTS THIS IDEA WITH THE WHOLE TOPIC OF WHAT'S BEEN A RECURRING THEME AROUND HERE ABOUT MORE TRANSPARENT TRANSPARENCY AND ACCOUNTABILITY. THAT ONE OF MY THOUGHTS, AND I, I'M NOT PUSHING THIS RIGHT NOW, I'M JUST TRYING TO SEED FUTURE CONVERSATIONS. UH, BUT IT, IT COUPLES ACTUALLY WITH, WHEN ANNETTE STARTED TO TALK ABOUT TOO, ABOUT GETTING COUNCIL CHAMPIONS. SO MY IDEA IS THE COUNCIL SUBCOMMITTEES STRUCTURE. SO I THINK THAT IF WE'RE GONNA START PAYING COUNCIL MEMBERS MORE, YOU MIGHT EXPECT MORE FROM THEM. AND ONE OF THE WAYS YOU COULD EXPECT MORE FROM THEM IS TO HAVE SUBCOMMITTEES, THERE'S A PUBLIC SAFETY SUBCOMMITTEE, OR IN A HOUSING AND ECONOMIC DEVELOPMENT. I DON'T KNOW WHAT THE GROUPINGS ARE. CITIES DO THIS ALL THE TIME. AND AGAIN, IT'S A BIGGER CITY CONCEPT THAN WHAT WE HAVE. BUT BENEFITS THAT I SEE OF THAT IS THAT ONE, YOU ALLOW COUNCIL MEMBERS TO DEVELOP A POLICY AREA OF EXPERTISE, AND SUBCOMMITTEES AREN'T SCREENING. THEY DON'T SHAPE IT. WHAT THEY'RE REALLY DOING IS THAT WHEN STAFF THINKS THAT SOMETHING IS READY OR IT'S TIME TO MOVE FORWARD, IT FIRST GOES TO A SUBCOMMITTEE AND IT GETS AN INITIAL PUBLIC HEARING. SO THAT'S REALLY THE FIRST TIME THE PUBLIC GETS TO WEIGH IN, NOT THE FIRST TIME. 'CAUSE THERE'S LOTS OF OUTREACH, BUT THAT'S ONE, IT'S, IT'S NOW AN ADDITIONAL WAY. INSTEAD OF IT JUST COMING TO COUNCIL, IT FIRST GOES TO THE SUBCOMMITTEE, UM, AND STAFF MAKES A PRESENTATION. THE, THE, THE COUNCIL MEMBERS ARE ON THE SUBCOMMITTEE, WHICH IS WHAT, TWO OR THREE CAN BE UP TO THREE. I DON'T KNOW. YOU KNOW, THE WHOLE STRUCTURE NEEDS SOME THOUGHTS, SOME IDEAS, BUT IT'S, IT GETS A, A VETTING AND COUNCIL GETS TO HEAR THE QUESTIONS. UH, STAFF GETS TO HEAR THE QUESTIONS THAT COUNCIL MEMBERS MAY ASK. AND THEN WHEN THE ITEM IS READY, IT GOES ON TO COUNCIL. AND SO THAT MIGHT ADDITIONALLY BENEFIT TO SHORTENING THE OVERALL, THE MAIN COUNCIL MEETING BECAUSE QUESTIONS HAVE BEEN ASKED AND ANSWERED. THE PACKAGE IS A LITTLE TIGHTER, UH, AND STAFF IS READY OR HAVE ADDRESSED QUESTIONS THAT HAVE COME UP BEFORE. NOW I KNOW, RIGHT. THIS IS ALSO A, A PROCESS PERHAPS LENGTHENING, AND MAYBE THERE'S MORE CITY STAFF, RIGHT? THERE'S A WHOLE BUNCH OF THINGS TO THINK ABOUT HERE. BUT IT'S AN INTERESTING WAY FOR, I THINK FOR US TO, UH, GET GOOD WORK DONE, GET MORE TRANSPARENCY AND ACCOUNTABILITY, AND PERHAPS SHORTEN THE TUESDAY MEETING, EVEN THOUGH OVERALL YOU'RE GONNA BE PUTTING MORE TIME IN. SO, JUST A THOUGHT THAT I'VE HAD OVER HERE. KATHY HAD HER HAND RAISED. BRIAN, LOOKS LIKE YOU WANNA SPEAK TOO, JUST KATHY, THANKS. GETTING MY EXERCISE. WE'RE WORKING BRIAN OUT. HE'S LIKE AT A TENNIS MATCH HERE. UM, , UM, PETE, I, I, I SUPPORT THIS PROPOSAL ABOUT PUTTING TOGETHER A CITIZEN TASK FORCE. THAT'S WHAT YOU ASKED FOR IN THE PROPOSAL. UM, YOU JUST EXPANDED IT IN YOUR NO FURTHER THOUGHTS. I'M NOT TRYING TO EXPAND. OKAY. 'CAUSE I SEEDING FUTURE [05:35:01] THOUGHTS. OKAY. THESE KIND OF THINGS WILL TAKE A COUPLE YEARS FOR US TO REALLY STRUGGLE WITH. OKAY. THAT I'M JUST SEEING. OKAY. I JUST WANTED TO BE CLEAR THAT, BECAUSE YOU DID GO, GO DOWN A, A, A HOLE THERE, RABBIT HOLE THERE. AND I, I DON'T WANT TO GO BEYOND WHAT WAS ASKED FOR IN THE ORIGINAL, UM, REQUEST. THAT'S FOR US TO CONSIDER. I DO THINK I WOULD LIKE IT TO BE PRIMARILY, OBVIOUSLY THERE'LL NEED TO BE SOME INPUT FROM STAFF TO GUIDE A CITIZEN GROUP, YOU KNOW, SO THEY UNDERSTAND SOME OF THE THINGS THAT WE'RE TALKING ABOUT. AND THEY MAY WANNA INTERVIEW OR REACH OUT TO SOME COUNSELORS, BUT I DON'T WANNA TASK THEM. SOMETHING WITH THE ELECTORATE AS A WHOLE GETS TO SET THEIR EXPECTATION FOR OUR JOBS OR THE DIFFERENCES, OR IF WE ARE MEETING THEIR INDIVIDUAL EXPECTATIONS OR NOT. SO I, I JUST DIDN'T WANNA TASK ANY GROUP WITH SOMETHING BEYOND YOUR ORIGINAL QUESTION. OKAY. SO JUST TO REFRAME THAT. BUT WITH THAT, I SUPPORT THE ORIGINAL ASK. YEAH. DO YOU GUYS WANNA WEIGH IN ON THIS QUESTION? I THINK IT'S OKAY. GOING, THIS IS ED KELLER AGAIN. UM, GOING BACK TO WHAT I SAID ABOUT THE ECOSYSTEM WE LIVE IN, I THINK THIS IS AN IMPORTANT STEP TO HOW DO WE GET THE YOUNGER GENERATION ENGAGED AND BY PAYING, YOU KNOW, GET VALUE FOR MONEY FOR THE PEOPLE THAT WANT THAT CAN'T PARTICIPATE BECAUSE THEY'VE GOT DAY JOBS AT THIS POINT. SO I THINK THIS IS AN IMPORTANT STEP THAT OUGHT TO BE EVALUATED. UH, I'D RECOMMEND GETTING SOME CITIZEN AS WELL AS COUNCIL REP REPRESENTATION ON THIS SO THAT WE CAN UNDERSTAND, YOU KNOW, I HAVE NO IDEA WHAT YOU GUYS GET PAID TODAY. IS IT? I DON'T KNOW IF IT'S FIVE BUCKS AN HOUR OR WHAT? 550 A MONTH. OKAY. WELL THAT'S A PRINCE LEE SUM OR PRINCESS LEE SUM. I DON'T THINK THAT'S ANYWHERE NEAR ADEQUATE. OKAY. 'CAUSE I'VE LOOKED AT, YOU KNOW, BEEN TO COUNCIL MEETINGS AND SEEING THE INVESTMENT IN TIME. THAT'S NOWHERE NEAR, YOU KNOW, YOU'RE GETTING ANY BENEFIT FOR WHAT THAT INVESTMENT IS. SO, UH, I WOULD SUPPORT THIS WHOLEHEARTEDLY AND I'LL TURN IT OVER TO MY COLLEAGUE JOLENE PEARSON. I THINK IF YOU HAVE SUBCOMMITTEES, IT GIVES YOU AN OPPORTUNITY FOR SOMEBODY ON THE COUNCIL TO DO A REALLY DEEP DIVE INTO THE, INTO THE, UM, SUBJECT, WHATEVER IT IS, WITHOUT EVERY COUNCILMAN HAVE, HAVING COUNCIL MEMBER HAVING TO DO THAT DEEP DIVE, WHICH YOU DON'T HAVE TIME TO DO. JOE, THANK YOU FOR THAT. CAN YOU SPEAK TO THE QUESTION ABOUT PAY? WELL, YES. I, I THINK YOU ALL DESERVE MORE MONEY, . IT'S APPALLING TO ME THAT IT'S $550 A MONTH GIVEN THE TIME THAT YOU'RE REQUIRED TO SPEND. UM, AGAIN, I, I'LL APOLOGIZE FOR MY TIMING OF THE COUNCIL COMMITTEE CONVERSATION. I JUST, THAT'S NOT ON THE TABLE. I'M, I'M NOT PUTTING THAT ON THE TABLE THIS YEAR. IT'S UP TO YOU GUYS TO THINK ABOUT THAT IN FUTURE YEARS AND, BUT YEAH. THANK YOU. OKAY. OH, GETTING THE MICROPHONE BACK. DO YOU HAVE ANY FURTHER ON THIS ITEM? OKAY. SO, UM, IF YOU WOULD LIKE, YOU CAN TAKE A BREAK OR THERE'S ONE MORE ITEM ON HERE, WHICH ARE YOUR COUNSEL LIAISON ASSIGNMENT. SORRY, WHAT HAPPENED? OH, I'M SORRY. MY TUITION ADVISORY BOARD. OH, THAT IS NOT IN MY MEMO, SO THAT'S WHY I SKIPPED IT. UM, I BELIEVE MY UNDERSTANDING FROM JOANNE IS THAT YOU ALL RECEIVED APPLICATIONS AND YOU WANTED TO TALK ABOUT THAT. I DON'T KNOW THAT, I THINK WE SHOULD MAKE THAT FOR TOMORROW. 'CAUSE TOMORROW WE REALLY WANT TO ACTUALLY MAKE THE DECISION ACTION TAKE IT IN ACTION THAT WE CAN'T TAKE TODAY BECAUSE IT WAS AGENDA FOR TOMORROW. FOR ACTION. OKAY. ALRIGHT. I HAVE THE SPREADSHEET READY FOR YOU TO DO HERE. SUPPORT FOR THE PEOPLE MOVING FORWARD OR YOUR CONSIDERATION OF REAPPOINTMENT. SO THAT, DO YOU HAVE QUESTIONS ABOUT THAT PROCESS FOR TOMORROW THAT YOU NEED ANY INFORMATION TODAY? I'M JUST GONNA HAVE TO RELOCATE ALL OF THOSE APPS. DO YOU HAVE AN IDEA WHEN THAT EMAIL WAS SENT OR IS IT EASIER TO RESEND IT LAST THURSDAY? LAST LAST THURSDAY. THAT'S GOOD ENOUGH. EXACTLY. THANK YOU, MAYOR. SO THE, UM, LAST DISCUSSION ITEM, UM, STARTS ON PACKET PAGE 52. IF YOU'RE LOOKING AT THE ONLINE PACKET, [05:40:02] THOSE ARE THE COUNCIL LIAISON ASSIGNMENTS. BUT KURT, UM, I GUESS IF THERE'S NO ABILITY TO MAKE A DECISION ON THOSE, DOES THE, DOES THE COUNCIL WANT TO EVEN DISCUSS THEM? I GUESS THE QUESTION COULD BE, DO YOU HAVE QUESTIONS ABOUT ANY OF THESE PARTICULAR COMMITTEES, UM, OR ORGANIZATIONS THAT YOU WOULD NEED SOME INFORMATION TO KNOW, UH, WHETHER YOU WANT TO BE THE LIAISON FOR IT OR NOT BEFORE THAT, UM, ACTION'S TAKEN TOMORROW AND THEN THERE IS ANOTHER GROUP FROM YAVAPAI COUNTY THAT REACHED OUT TO THE CITY AND ASKED FOR CITY REPRESENTATION THAT'S NOT ON THIS LIST. SO IS THAT OKAY, KURT, TO, 'CAUSE THEY WANTED, UM, TO KNOW WHO FROM SEDONA WOULD BE ON YAVAPAI COUNTY'S WATER, UH, WHAT WAS IT CALLED? WATER RESOURCE MANAGEMENT COMMITTEE OR SOMETHING THAT THE COUNTY JUST CREATED. UM, AND THEY WERE ASKING FOR COUNSELORS TO BE ASSIGNED TO THAT. AND I THINK SOME OF YOU, OR ALL OF YOU MAY HAVE GOTTEN AN EMAIL ABOUT THAT FROM THE COUNTY. SO I WAS THINKING WE COULD DO THAT BECAUSE WE DIDN'T SPECIFICALLY LIST WHAT ALL THOSE LIAISONS WERE IN THE AGENDA. UM, SO I WANTED TO ADD THAT ONE. SO, SO YES, YOU CAN DISCUSS IT. AND AGAIN, NO ACTION UNTIL TOMORROW THOUGH. OKAY. SO I WOULD ADD SOMETHING TOO, IF THERE WAS, IT'S TOO BAD THAT CHARLOTTE'S NOT WITH US. MAYBE WE CAN QUERY BECAUSE THERE'S ONE OPENING AT A MINIMUM, WHICH IS THE HUMANE SOCIETY THAT, THAT, UH, FORMER MAYOR WAS A LIAISON TO. AND, UH, SO THAT HAS TO BE DECIDED. AND UH, AND MAYBE THERE'S A COUNSELOR OR TWO OR WHATEVER, UH, WHO WANTS TO STEP BACK FROM AN ASSIGNMENT. SO IF THAT'S THE CASE, I WOULD SUGGEST WE TALK ABOUT THAT NOW SO THAT PEOPLE COULD CONSIDER FOR TOMORROW WHETHER THAT'S SOMETHING THEY'RE INTERESTED IN. TO THAT POINT, I THINK WE HAD STARTED TO HAVE A CONVERSATION ON THE DAY. I AT ONE POINT AND THEN REALIZED THAT WE WANTED TO WAIT TO HAVE THE CONVERSATION WITH COUNSELOR HOSSEINI, WHO IS UNABLE TO BE HERE FOR THIS DISCUSSION. SO THAT QUESTION MARK STILL REMAINS, 'CAUSE I HAVE NO IDEA WHAT HER AREA OF SPECIFIC INTEREST IS. UM, I DO KNOW WHAT SOME OF HER EXPERTISE IS, BUT, UM, I JUST DON'T KNOW HOW TO FACTOR THAT INTO THE DISCUSSION. SO WHAT THINK PEOPLE THINK ABOUT THAT? WELL, UH, ANNETTE SAID SHE WAS GONNA REACH OUT TO HER TO UNDERSTAND THE SUSTAINABILITY, TO HAVE A CONVERSATION TOMORROW. SO MAYBE YOU COULD ADD THAT AND WHETHER SHE WING IT CAN ANSWER THE QUESTION OR NOT. YEAH, I DON'T KNOW. DO YOU WANT ANY PUBLIC STATEMENTS AT THE MOMENT OF THINGS THAT PEOPLE ARE INTERESTED IN THOUGH? ABSOLUTELY. OR YEAH, I'M CERTAINLY BE INTERESTED IN THE MAIN SOCIETY, BUT I THINK OTHER COUNSELORS ARE AS WELL, SO, OKAY. IF NOT, IT'S A GAP IN WILLINGNESS. ABSOLUTELY. ARE OTHER COUNSELORS INTERESTED IN THE HUMANE SOCIETY? YES. I'M INTERESTED BUT NOT AS LIAISON. , YOU DEFERRED? YES. I'M INTERESTED. IS THERE SOMETHING YOU WOULD GIVE UP OR YOU WOULD ADD THAT I CAN GO EITHER WAY. IT DEPENDS ON IF SOMEBODY IS INTERESTED IN THE SEDONA COMMUNITY CENTER, WHICH I CURRENTLY AM LIAISON TO, UM, YOU KNOW, I'M CERTAINLY WANNA KNOW SOMEBODY'S INTEREST. IF NOBODY, UH, IF, IF THAT'S NOT COMPELLING TO SOMEBODY, I'M CERTAINLY WILLING TO DO BOTH. OKAY. PERHAPS YOU CAN ASK COUNSELOR HUSSEINI IF SHE HAS AN INTEREST IN EITHER THE HUMANE SOCIETY OR THE COMMUNITY CENTER AND WE COULD BRING THAT BACK TOMORROW. DEREK, HOW DID WE DECIDE WHO GETS A CENTER? IT USED TO BE A MAYOR'S APPOINTMENT AND WE CHANGED THE RULES OF PROCEDURE SO THAT IT'S NOW COUNCIL DECISION. BUT I THINK YOUR, WAS YOUR QUESTION WHAT ORGANIZATION? YEAH, LIKE HOW DO, HOW DO WE DECIDE THIS ORGANIZATION GETS LA'S? NOT WHO THE LA LIAISON IS. OH, OH, OH, OH, OH. I CAN'T ANSWER THAT QUESTION. . I'VE BEEN ASKING IT FOR FIVE YEARS. , I THINK IT WOULD BE GOOD IF WE HAD LIAISON SPEAK THAT LIKE WHY NOT WE HAVE ONE TO LIKE AND, YOU KNOW, I MEAN, [05:45:01] BUT MEETING, IF THEY WOULD BE INTERESTED, I THINK WE'D HAVE TO PURSUE THAT WITH THEM. I MEAN, IT COULD BE FOR ME THAT I THINK MORE COMMUNICATION BETWEEN THE CITY AND SCHOOL DISTRICT BE, I KNOW THAT AT A MINIMUM ALL THE SERVICE CONTRACTS HAVE A LIAISON AND THAT'S EMBEDDED INTO THE CONTRACT. BUT WE'VE GOT OTHER, UH, GROUPS THAT WE HAVE LIAISON SHIP WITH THAT ARE NOT SERVICE CONTRACTS. JOANNE, DO YOU HAVE A OH, SHE'S NOT HERE. OKAY. WE CAN ASK HER. MAYBE SHE HAS SOME HISTORY. I HAVE A QUESTION. BRIAN. BRIAN'S GOT LUNCH IF PETE'S OKAY WITH THAT. OKAY. ONE OF THE THINGS THAT'S JUST KIND OF INTERESTING, I, WHEN I WENT THROUGH THE LIST INITIALLY I WAS LIKE, OH, I DIDN'T KNOW I WAS THE LIAISON. YOU KNOW, THERE'S, THERE'S, THERE'S MULTIPLE OF THOSE, RIGHT? LIKE I'M THE CHAMBER LIAISON, BUT THE CHAMBER DOESN'T RECOGNIZE THAT I'M THE LODGING COUNCIL LIAISON. BUT THE LODGING COUNCIL DOESN'T RECOGNIZE THAT THE, UH, HOUSING COMMITTEE OTHERWISE KNOWN AS THE HOUSING ADVOCACY GROUP. IF YOU ASK LINDA MARTINEZ, SHE WILL TELL YOU THAT SHE DECIDES WHO CAN BE PART OF THE GROUP AND IT'S NOT A, AN APPOINTMENT OF FORMERLY THE MAYOR OR NOW COUNCIL. SO I DON'T KNOW IF THAT'S JUST AN ANOMALY THAT I'VE HAPPENED TO DRAW THOSE SITUATIONS, BUT IT'S LIKE I SEE MY NAME ON HERE ON A BUNCH OF STUFF AND IT'S LIKE I JUST GO TO THE MEETINGS BECAUSE I WANNA KNOW WHAT'S GOING ON. BUT THERE'S NO ACTUAL REAL LIAISON, UH, CONSIDERATION WITH ANY OF THOSE THAT I JUST MENTIONED. YOU KNOW, I LOOKED, I I WAS SHOCKED WHEN I SAW THAT BECAUSE IT'S NOT REAL. SO IT'S, THEY'RE NOT REAL HOW THEY GOT ON THIS LIST. I DON'T KNOW. UH, AND WE COULD DECIDE TOMORROW TO ELIMINATE THEM. 'CAUSE THEY'RE NOT BY WHATEVER YOU WANT IT DIRECTIONAL, RIGHT? I MEAN, THEY'RE, THEY HAVEN'T DECIDED THEY NEED A LIAISON AND THEY DON'T RECOGNIZE IT. JUST LIKE YOU SAID. AND ALSO, SOME OF THESE HAVE A STAFF PERSON, A SON, , UM, SOME OF THESE ORGANIZATIONS HAVE A STAFF MEMBER ASSIGNED TO THEM. SO HOW, IF THERE'S A STAFF MEMBER AND A COUNCIL LIAISON, HOW DOES THAT INTERACTION HAPPEN? I DON'T, I DON'T KNOW IF I THINK THAT'S, UH, THE BEST MODEL. WELL, I, I'LL TELL YOU ON ARIZONA FORWARD, WHICH I'VE NEVER HEARD OF, , WE ASKED THE SUSTAINABILITY, SUSTAINABILITY, UH, SUSTAINABILITY MANAGER, BRYCE, IF HE WAS A LIAISON. AND HE SAID NO, HE'D NEVER HEARD OF THE ORGANIZATION EITHER. SO SOME OF THESE HAVE TO COME OFF THE LIST. AND SINCE WHEN DO WE HAVE AN OFFICIAL LIAISON TO KEEP SEDONA BEAUTIFUL. WE'VE ALWAYS HAD, AS FAR AS I KNOW, WE'VE ALWAYS HAD THAT. HOW THAT GOT DECIDED, I DON'T KNOW. YEAH, I, AND I, I REMEMBER ERIC MAYBE. YEAH. MY QUESTION WAS GONNA TOUCH ON SOME OF THESE SAME THINGS, BUT IT WAS GONNA START WITH OUR CATEGORIZATION OF SHARED GOVERNANCE, WHICH IN OUR RULES REVAMPING, WE'VE ASKED THE SHARED GOVERNANCE PEOPLE TO DO MORE ENHANCED REPORTING TO COUNCIL. BUT THEN I LOOK AT ARIZONA FORWARD AND IS THERE REALLY, DO THEY VOTE ON ARIZONA FORWARD? I DON'T EVEN KNOW WHAT IT IS. AND THE HOUSING COMMITTEE, ARE THERE VOTES THAT, YOU KNOW, YOU SHOULD BE REPRESENTING THE CITY, SO YOU GOTTA BE CAREFUL AND REPORT TO COUNCIL. AND THERE'S OTHERS ON HERE TOO. SO I THINK THAT THERE'S, IT, IT, THERE'S SOME PRUNING I THINK WE'VE JUST IDENTIFIED, BUT MAYBE WE ALSO NEED TO REALLY THINK ABOUT THAT SHARED GOVERNANCE DESIGNATION ABOUT REALLY IS THAT A, A DESIGNATION OF VOTING AND YEAH, I'VE BEEN ON, KEEPS BEAUTIFUL SINCE WHEN I CAME ON, I THINK THE MAYOR WAS ON AS COUNSELOR WAS BEFORE, OR VICE MAYOR WAS BEFORE ME. UM, YEAH. JOE, DO YOU HAVE SOME COMMENTS? WELL, I JUST REMEMBER BACK IN LIKE 2015 OR 16, I, I DON'T KNOW IF IT WAS THE MAYOR THAT WOULD ATTEND AZ FORWARD AND THEN IT GOT TRANSFERRED OVER TO A, A STAFFER, BUT IT DID EXIST YEARS AGO. I DON'T KNOW. I MEAN, IT, IT DOES, WHEN I LOOK AT THE, THEIR WEBSITE HERE AS A STATE ORGANIZATION. BUT THE WASTEWATER MUNICIPAL CORPORATION WAS ANOTHER ONE THAT I'M SURE [05:50:01] MEETS. AND I'LL BET YOU VOTE AND I BET I'VE NEVER HEARD OF IT. KURT HAS. WELL, YEAH, I CAN WEIGH IT ON TWO REAL QUICK. SO FIRST, THE AGENDA SETTING TEAM SHOULD COME OFF, UH, TOMORROW. 'CAUSE THAT'S NO LONGER A COUNCIL, UM, CONTROLLED BOARD OR TEAM. IT'S A CITY MANAGER GROUP. UH, AND THEN THE MUNICIPAL CORPORATION, IT DOES EXIST. IT'S IN OUR, IT'S IN OUR MINUTES. UM, BUT WE, WE PROPOSE, AND WE'LL DO THIS, YOU KNOW, LATER AT THE, WHEN IT COMES UP FOR THE ANNUAL MEETING, UM, TO JUST MAKE THAT MEET AS NECESSARY, WHICH WILL WON'T BE EVER, UH, GENERALLY, BUT WE WANNA KEEP THOSE IN CASE THE, THE CITY EVER WANTS TO DO SOME FUTURE BONDING FOR THE MUNICIPAL CORPORATION. UH, JUST LEAVE THAT AS AN OPTION. SO THERE'S NO REASON TO GET RID OF THE MUNICIPAL CORPORATION. THERE ARE STILL SOME BONDS THAT ARE, WELL, THEY MIGHT HAVE ALL BEEN RE BONDED UNDER GENERAL OBLIGATION, BUT THERE MIGHT STILL BE SOME OBLIGATIONS UNDER THOSE IN THE NEXT YEAR OR TWO THAT'LL GO AWAY. SO YOU COULD GET RID OF THE MUNICIPAL CORP, UH, THE MUNICIPAL WASTEWATER CORPORATION. UH, BUT FOR NOW IT SEEMS PRUDENT JUST TO, IT DOESN'T COST US ANYTHING. IT REALLY JUST TO LEAVE IT AS IS. UM, BUT WE'LL UPDATE THE, UM, YEAH, SO I DO AN ANNUAL REPORT EVERY YEAR, WHICH JUST MEANS THE BOARD MEMBERS AND THEN IT'S ARTICLES OF INCORPORATION. RIGHT. WHATEVER. WE'LL UPDATE THOSE. SO THEY'LL JUST MEET, INSTEAD OF MEETING ANNUALLY, IT'LL JUST MEET AS NECESSARY. RIGHT. BECAUSE ALL THERE IS IS JUST APPROVE MINUTES OF APPROVING THE REPORT, WHICH IS WE'RE FIVE MINUTE MEETING. WELL, LET'S, LET'S GO THROUGH THEM. SO WE WE'RE GONNA TAKE THE AGENDA SETTING TOMORROW WE'LL VOTE ON WHETHER TO TAKE THE AGENDA SETTING TEAM OFF THE AIRPORT. WHY IS THE AIRPORT ON HERE? I MEAN, I KNOW WE HAVE A, I KNOW YOU'RE A LIAISON, BUT WHY DO WE HAVE A LIAISON TO THE AIRPORT? SO ORIGINALLY WHEN THAT CAME UP, UM, THAT WAS MEANT TO BE, TO ATTEND THE BOARD MEETINGS AND REPORT BACK ON THE BOARD MEETINGS WHEN THERE WAS THE WHOLE CONVERSATION OF WHETHER OR NOT THE AIRPORT SHOULD BECOME PART OF THE CITY. SO SUBSEQUENTLY, I HAVEN'T REALLY ATTENDED THOSE BECAUSE THAT DECISION HAD BEEN MADE. UM, I STILL GO TO THE AIRPORT ADVISORY COMMITTEE, AND THAT'S REALLY MADE UP OF RESIDENTS AND CITIZENS. UH, ANDY I THINK GOES THERE AS REPRESENTATIVE FOR THE CITY ITSELF. I AM THERE AS WELL. IF HE'S NOT THERE, I'LL COVER BY GETTING ANY QUESTIONS OR WHATEVER THEY HAVE AND MAKING SURE THEY GET BACK TO HERE. UM, BUT IT'S JUST, I AM MOSTLY THERE TO PAY ATTENTION. SO IF SOMETHING DOES COME UP, I CAN EITHER TALK TO THE CITY MANAGER TO ANDY OR BRING SOMETHING UP AT COUNCIL THAT IMPACTS THE RESIDENTS. SO THAT'S, TO ME, THAT'S WHAT THE AIRPORT IS NOW. IT IS, HAS NOTHING TO DO WITH GOING TO THE AIRPORT BOARD. GOTCHA. JUST A QUICK COMMENT ON THE AIRPORT. I MEAN, TECHNICALLY, OR I DON'T EVEN KNOW IF TECHNICALLY IS THE RIGHT WORD, BUT, UH, AN AIRPORT IS PART OF AN OVERALL TRANSPORTATION SYSTEM. WE JUST DON'T HAPPEN TO OWN IT OR MANAGE IT. SO IT IS IMPORTANT TO BE IN TOUCH WITH WHAT'S HAPPENING OUT THERE. SO THAT'S WHY WELL, ANDY, FOR GO. YEAH. BUT, AND THEN IT ALSO JUMPS TO MY MIND WHEN YOU ASKED YESTERDAY, IS THERE EVER A TIME WHEN THE STAFF WOULD TELL THE COUNCIL NOT TO DO SOMETHING IF IT'S NOT A GOOD IDEA? UM, YEAH, WE DID THAT WITH THIS ASSESSMENT. UM, ANYWAY, OKAY, SO ARIZONA FORWARD, WE CHECKED WITH BRYCE. HE DOES NOT ATTEND THE MEETINGS. HE DIDN'T EVEN KNOW WHAT THE GROUP WAS. IS THERE ANY REASON? WHAT DOES IT DO? SHOULD WE, SHOULD WE BE ? UH, I JUST SENT YOU ALL THE LINK TO THE ARIZONA FORWARD, SO YOU GUYS CAN, BUT WHAT IS IT? CHECK IT OUT. I DIDN'T READ IT. I JUST SENT YOU THE LINK. BARBARA. IT'S FOR SUSTAINABILITY. I BELIEVE. SO I'M JUST GONNA READ THIS. ARIZONA FORWARDED A NON-PROFIT, NON-PARTISAN MEMBER BASED ORGANIZATION WITH OVER 50 YEARS OF EXPERIENCE. THEY WERE FOUNDED IN 1969, IS LEADING THE CHARGE FOR SUSTAINABILITY IN ARIZONA. SEE, I'M AN ADVOCATE. I'M KIDDING. . UM, IT, IT SOUNDS LIKE THEY'RE JUST A STAKEHOLDER GROUP, HONESTLY. BUT THEY'RE STATEWIDE. THEY'RE NOT SEDONA. THEY'RE JUST STATEWIDE. SO I I DON'T KNOW THAT IT BELONGS ON THIS LIST. IT'S UP TO THE SUSTAINABILITY DEPARTMENT IF THEY WANT TO PARTICIPATE. DO YOU ROLL? YES. OKAY. WE KNOW ABOUT COCONINO PLATEAU WATER ADVISORY COMMITTEE. I HOPE YOU DO. I TRIED TO MAKE YOU AWARE. UH, GAMMA IS, UH, THE GREATER ARIZONA MAYOR'S ASSOCIATION. IT'S, IT'S MAYORS FROM MOJAVE, COCONINO, YAVAPI, APACHE, AND NAVAJO COUNTIES. THEY MEET QUARTERLY. AND ROBIN PRUDE BOWERS, THE CURRENT CHAIRPERSON, AND THEY MEET AT THE LEAGUE MEETINGS ONCE A YEAR. [05:55:02] UH, I'VE BEEN TO SEVERAL OF THEIR MEETINGS. THEY TALK ABOUT MAYOR JALO WAS, WAS VERY INTERESTED IN GETTING THEM TO SUPPORT SHORT TERM RENTAL LEGISLATION, BUT THEY ALSO TALK ABOUT THINGS THAT ARE COMMON TO RURAL AREAS. IS THERE A BUDGET? DO YOU VOTE ON THINGS? NO, NOTHING. IT'S NOT REALLY A SHARED GOVERNANCE THING. NO. WELL, NO, NOT IN THAT SENSE. THEY DO KIND OF. SO THEY DID AS AN EXAMPLE, I DON'T KNOW IF THEY ACTUALLY VOTED. THERE WAS A CONSENSUS THAT THEY WANTED TO SUPPORT SEDONA ON, UH, SHORT TERM RENTAL LEGISLATION. BUT DO YOU FEEL THAT THERE'S A REASON TO CONTINUE? OH, YEAH. YEAH. BEGINNING. YEAH. I I THINK ALL OF THE VERDE VALLEY, UH, CITIES ARE PART OF IT. SO I, I GUESS I WANNA ASK KURT, IS THAT A SHARED GOVERNANCE OR IS THAT AN INTERNAL VOLUNTARY, INFORMAL VOLUNTARY DESIGNATION. I MEAN, IT FITS IN BETWEEN , UM, FOURTH CATEGORY, A FOURTH PRIORITY OR FOURTH CATEGORY. NO, WE, IT COULD FIT ON. I MEAN, IT, THEY DO, YOU KNOW, SHARE? UH, IT COULD BE EITHER. I, I GUESS THE ONLY REASON I'M, THERE'S LOBBYING PUSH THAT A LITTLE BIT IS BECAUSE WE'RE EXPECTING THE SHARED GOVERNANCE MODEL, ORGANIZATION MEMBERSHIP LIAISONS TO REPORT NOW MORE. SO I THINK WE REALLY OUGHT TO DECIDE WHETHER IT IS OR NOT. I MEAN, I EXPECT THE MAYOR TO REPORT TO US ANYHOW ABOUT POLICY INITIATIVES OR THINGS THAT YOU DISCUSS AS A GROUP AND THAT YOU MAY WANNA POSITION US FOR. BUT IT'S DIFFERENT THAN, SAY, VOTING ON THE BUDGET OF THE ORGANIZATION OR LEGISLATIVE. OH YEAH. THERE'S NO BUDGET IN THIS ORGANIZATION. POLICY ISSUES. YEAH. THEY'RE ACTUALLY HAVING A MEETING. THEY HAVEN'T HAD A MEETING IN A LONG TIME, BUT THEY'RE HAVING A MEETING ON A PS AND, UH, WHAT'S THE UTILITY THAT'S, UM, IN THE FURTHER SOUTH FROM US? SRP, S-R-P-S-R-P, UH, RATE INCREASES TO HAVE INFORMATION PRESENTED. THAT'S BUT NOT TAKEN A POSITION ON LEGISLATION OR NO, BUT HAVE THEY EVER TAKEN A POSITION ON THIS? I, I DON'T KNOW. I DON'T KNOW WHETHER THEY'VE EVER TAKEN IT. I'VE BEEN TO SEVERAL MEETINGS WHERE THEY HAVEN'T TAKEN ANY POSITIONS, BUT I DON'T KNOW IF THEY EVER DID. MY UNDERSTANDING IS THE ORGANIZATION DOESN'T TAKE A POSITION AS AN ORGANIZATION, BUT ALL THOSE MAYORS DISCUSS WHAT EVERYONE'S COUNCILS OR THEIR CITIES ARE DOING ON LEGISLATION AND TAKES INFORMATION BACK ABOUT WHAT OUR CITY'S POSITION IS GONNA BE. AND THEY TRY TO CONVINCE EACH OTHER. YOU NEED TO TALK TO YOUR CITY ABOUT BEING IN SUPPORT OR, UH, OPPOSITION TO THIS BILL. BUT I DON'T THINK GAMMA AS A ENTITY FORMALLY, UM, SUPPORTS OR OPPOSES LEGISLATION. THAT'S RIGHT. DOES THAT MAKE SENSE? IT'S MORE OF AN INFORMATION SHARING, UM, COLLABORATION ON STUFF, BUT MAKE MORE, LIKE WHAT HE WAS SAYING, INFORMAL. YEAH, IT'S VERY INFORMAL, BUT THEY HAVE SPEAKERS AND THINGS LIKE THAT. OKAY. HOUSING COMMITTEE. THERE'S CERTAINLY NO SHARED GOVERNANCE THERE, EVEN THOUGH IT SAYS SO. BUT THERE ISN'T. AND IT SAYS MY NAME. I DON'T CONSIDER MYSELF A MEMBER OF THIS HOUSING COMMITTEE SINCE HOUSING IS ONE OF OUR PRIMARY OBJECTIVES, PRIORITIES. I'M NOT SURE WHAT WORDS WE'RE USING ANYMORE. UM, BUT ANYWAY, SINCE IT IS, AND WE'RE TALKING ABOUT DOING CHAMPIONS WITH SOMEONE ON STAFF AND SOMEONE ON COUNCIL AND, AND A RESIDENT, WOULDN'T THAT REPLACE THIS? IT'S A SQUISHY GROUP . AND WHAT I MEAN BY THAT IS THERE USED TO BE A HOUSING COMMISSION, THE HOUSING COM, THIS IS WHAT I KNOW MAY NOT BE A HUNDRED PERCENT ACCURATE. WHEN THE HOUSING COMMISSION WAS ELIMINATED, THIS GROUP CONTINUED IN A UNOFFICIAL CAPACITY. UH, AND THEY WERE MEETING AT THE CITY USING CITY RESOURCES. AND THAT WAS QUESTIONABLE. AND, AND SO THEY, THAT, THAT, UM, THEY'VE MOVED TO THE LIBRARY [06:00:01] AND SO THEY NO LONGER, UH, USE ANY CITY RESOURCES AT ALL. THAT'S A GOOD THING. UH, THEY, THEY TAKE POSITIONS, BUT THEY DON'T ASK THE CITY TO TAKE THAT. YOU KNOW, THEY, THEY'RE AN ADVOCACY GROUP. I'VE, I'VE ATTENDED A COUPLE OF THEIR MEETINGS. BRIAN'S ATTENDED MORE MEETINGS. UH, BUT I SAY SQUISHY BECAUSE OUR HOUSING STAFF GOES TO THESE MEETINGS AND ASKS THEM TO DO THINGS THAT I'M NOT SURE OUR CITY MAN IN THE PAST, THAT OUR CITY MANAGER WAS AWARE OF. SO THEY'RE, THEY HAVE A LOT OF MEMBERS AND THEY, THEY'RE, THEY HAVE A GOOD, I MEAN, THEY'RE, THEY WANNA BE HELPFUL, BUT THEIR STATUS ISN'T QUITE, I DON'T EVEN KNOW HOW TO DEFINE IT'S, UH, UNOFFICIAL. BUT THERE'S ALSO A MISPERCEPTION IN THE COMMUNITY BECAUSE THEY BELIEVE THAT SOMETIMES THAT THE HOUSING, WHAT ARE THEY CALLING THEMSELVES? HOUSING COMMITTEE THAT THEY'VE REPRESENTED THAT THEY'RE THE SEDONA HOUSING COMMITTEE. AND THEREFORE THE PUBLIC FEEL THAT IT IS A SUBSET OF SEDONA CITY GOVERNMENT. SO IT, IT, IT'S VERY FUZZY, SQUISHY, FUZZY, ALL THESE TECHNICAL TERMS. AND THEY'RE NOT, MEETINGS ARE NOT OPEN TO THE PUBLIC. THAT'S THE OTHER THING ON MINUTES. YEAH. THAT'S INTERESTING. AND THEY DON'T NECESSARILY WANT A LIAISON OR THEY WANNA BE IN CONTROL OF IT. AND I WOULD THINK A REQUIREMENT TO BE ON OUR LIST IS IT'S OUR LIAISON. WE APPOINT IT AND THEY HAVE TO WANT IT. AND SO IF NONE OF, IF SOME OF THOSE THINGS DON'T EXIST, THEN WELL, I THINK THEY DO WANT A LIAISON. YEAH. 'CAUSE THEY WANT IT TO CONVINCE THE COUNCIL MEMBERS OF THEIR POSITION. I MEAN, THEY, THEY ADVOCATE FOR CERTAIN THINGS, SO THEY DO WANT COUNSELORS TO BE A PART OF IT, BUT IT'S A DIFFERENT FORM OF LIAISON SHIP. YEAH, IT'S INTERESTING. SO I DON'T KNOW WHAT TO DO WITH IT. IT KATHY'S RIGHT, THOUGH. THE PUBLIC THINKS IT'S MUCH MORE OFFICIAL THAN IT IS, AND THAT, THAT'S CONCERNING. I WOULD CALL IT INFORMAL VOLUNTARY THAN THE IV OPTION. YEAH. YEAH. I DON'T KNOW IF YOU HEARD ME. I JUST MENTIONED THAT MY UNDERSTANDING IS THEY REFER TO THEMSELVES AS THE HOUSING ADVISORY GROUP. YEAH. SO WE COULD, YOU KNOW, UPDATE THAT ON HERE AS WELL. THAT IT'S A QUESTION ABOUT INFORMAL, VOLUNTARY. SO DOES THAT MEAN THAT ANYBODY CAN GO, IF IT'S INFORMAL AND VOLUNTARY, THEREFORE, WHY ARE WE CALLING IT A LIAISON? BECAUSE IF MORE, IF, IF THREE OF US COULD SHOW UP AT THAT MEETING JUST BECAUSE WE'RE INTERESTED IN THAT MEETING. I MEAN, SO HOW IS THAT A LIAISON SHIP? I I, I I THINK WE NEED TO RE-LOOK AT THE ENTIRE, EVERYTHING THAT WE DESIGNATE IS ALREADY DESIGNATED OR IS RE-DESIGNATED AS INFORMAL, VOLUNTARY. I THINK WE SHOULD REALLY THINK ABOUT THAT DESIGNATION, WHAT THAT MEANS. IS IT ? YES, BUT I'M NOT SURE I AGREE WITH THE DEFINITION. OKAY. LAY, BECAUSE IT, BECAUSE THE DEFINITION STARTS WITH THE WORD LIAISONS. LIAISONS TO THESE ORGANIZATIONS ARE VOLUNTARY BASED ON INTERESTS FROM COUNSELORS. LIAISONS SHOULD LIVE AT ACTIVITY TO ATTENDING MEETINGS, COLLECTING INFORMATION, REPORTING BACK TO COUNCIL. IF THE LIAISON, I JUST LOST MY PLACE, UH, IS ASKED TO GIVE A REPORT TO THE CITY, THIS IS DISCOURAGED. BUT IF GIVEN THE LIAISON SHOULD ENSURE THAT THE REPORT REFLECTS ALL CITY COUNCIL ACTIVITIES AND NOT JUST THE LIAISON'S, AREAS OF INTEREST. IF YOU'RE INFORMAL, VOLUNTARY, YOU'RE GOING 'CAUSE YOU'RE INTERESTED, BUT NOW YOU'VE GOT HANDCUFFS ON YOUR INTEREST LEVEL. UM, BUT AT THE SAME TIME YOU HAVE TO GIVE A REPORT, THEN YOU ARE A LIAISON. I MEAN, THIS WHOLE CATEGORY NEEDS A REVAMP. I THINK THIS DESIGNATION. OKAY. THE HUMANE SOCIETY THAT IS A FORMAL LIAISON SHIP. YOU WELL, I WAS GONNA JUMP, I WAS GONNA JUMP AHEAD. IT KEEPS IT ON A BEAUTIFUL, AND JUST TALK ABOUT WHAT I DO AND KEEP IT ON. BEAUTIFUL. 'CAUSE IT, YEAH, I THINK IT RELATES TO THE QUESTIONS THAT YOU WERE JUST ASKING. AND, AND WE'VE, SINCE I GOT ON THE, AS A LIAISON, WE [06:05:03] REVISED SORT OF THE EXPECTATIONS. AND SO WHAT IT IS NOW, THE KSB BOARD MEETINGS ARE OPEN TO THE PUBLIC. I ATTEND, I'M ON THE AGENDA AND I GIVE, UH, AND I'VE MORPHED IT NOW TO JUST FORECASTING TO THEM WHAT ISSUES ARE COMING TO THE CITY COUNCIL THAT MAY BE OF INTEREST TO THEIR MEMBERS OF THEIR ORGANIZATION. UH, I MIGHT ALSO REPORT, LOOK BACKWARDS AND SAY, HERE'S THE VOTES THAT WE TOOK OF THOSE IN THINGS THAT YOU SAID YOU'RE INTERESTED IN, JUST IN CASE YOU DIDN'T KNOW THAT WAS RESOLVED AT THIS MEETING. AND THAT'S REALLY ALL THAT I DO. THEY FIND IT VERY USEFUL AND ARE ENTHUSIASTIC ABOUT MY PARTICIPATION IN THE MEETINGS THAT WAY. UM, AND I THINK THAT IS, YOU KNOW, REALLY GOES TO THE INFORMAL VOLUNTARY, I'M NOT, I DON'T VOTE ON THEIR BOARD. MARIA, I JUST ATTEND. THEY HAVE A SCHEDULE THING FOR ME, AND I JUST FORECAST FOR THEM WHAT'S MOVING AT CITY COUNCIL THAT THEY MAY BE INTERESTED IN. AND I THINK YOUR DESCRIPTION SOUND GREAT. YEAH. UM, BUT I DON'T KNOW HOW THAT RISES TO YOU HAVING THE WORD LIAISON ATTACHED TO IT IN ANY WAY, SHAPE OR FORM. AND ALSO THAT'S YOU, IF THE NEXT PERSON, IF YOU'RE NO LONGER ON COUNCIL WHO HAS THAT QUOTE LIAISON SHIP, USE IT DIFFERENTLY. IT LEAVES THAT DOOR OPEN. THAT'S WHY I DON'T, I JUST DON'T WANT THESE, THEY SHOULDN'T BE SUBJECTIVE PERSON. NOT, I MEAN YEAH. YEAH. NO, I, THINGS CAN, BUT NOT THE DESIGNATION. YOU KNOW WHAT I MEAN? YEAH, YEAH. AND, AND THAT'S WHY I CHANGED IT BECAUSE I WASN'T REALLY SURE WHAT THE PREVIOUS LIAISON WAS DOING OR WASN'T DOING WITH THE ORGANIZATION. AND I WAS LIKE, HERE'S VALUE THAT I CAN ADD TO YOUR ORGANIZATION AND THAT'S GREAT. YEP. OKAY. LEAGUE OF ARIZONA CITY'S AD HOC POLICY COMMITTEES. THESE BFED IS AN ACTUAL POLICY COMMITTEE. YEAH. IS THE, AND SO IS G-A-H-R-E AND NSQL AND ONE MORE PS MAC ON THE NEXT PAGE. YEAH. NOW I'M NOT, I HAVE BEEN ON NSQL AS A COUNSELOR FOR A NUMBER OF YEARS. THAT'S NEIGHBORHOOD SUSTAINABILITY AND QUALITY OF LIFE. I DON'T KNOW WHAT THE OTHER ONES STAND FOR. UH, THE BFE. SO I DON'T KNOW WHAT THE OTHER STAND FOR. UH, WE NEED TO FIND THAT OUT. BUT ANY COUNSELOR WHO WANTS TO BE ON A POLICY COMMITTEE, THERE CAN ONLY BE ONE OFFICIAL POLICY COMMITTEE MEMBER FROM A CITY, UH, PETE, YOUR PS MAC IS PUBLIC SAFETY MILITARY IN THE COURTS. OKAY. AND MELISSA, YOU'RE ON ONE. YEAH. THAT'S FOR TRANSPORTATION. AND TO BE HONEST, IN THE THREE YEARS I'VE BEEN HERE, WE'VE HAD TWO MEETINGS. I'VE BEEN INVITED TO ONE ON OHVS AND, UM, ONE ON HOW DO WE, HOW DO WE GET EV STATION MONEY UP TO THE TINY LITTLE TOWNS IN NORTHERN ARIZONA? SO THAT'S THE ONLY ONES, NO, MAYBE THEY'VE MET TWICE A YEAR AND JUST HAVEN'T INVITED ME. I DON'T KNOW. BUT I'VE, THAT'S THE ONLY TWO THAT I'VE, I'VE ATTENDED. SO HARDLY ANY WELL, I, I CAN'T TELL YOU. I KNOW, I KNOW WHAT THE PURPOSE OF THESE COMMITTEES IS TO VET RESOLUTIONS THAT WILL GO BEFORE THE LEAGUE OF CITIES AND TOWNS AT THE ANNUAL MEETING. AND IF THERE AREN'T ANY RESOLUTIONS THAT ARE PROPOSED BY CITIES AND TOWNS, THEY DON'T MEET. SO THEY MEET IN MAY AND THEY MEET IN JUNE. DEPENDING ON WHETHER THERE'S A PURPOSE, WHETHER THERE ARE RESOLUTIONS TO CONSIDER. THE GROUP THAT I'VE BEEN A MEMBER OF HAS CONSIDERED AND MOVED ON RESOLUTIONS FOR THE MAYORS TO CONSIDER AT THE ANNUAL MEETING. SO I THINK SOME OF THEM ARE MORE ACTIVE THAN OTHERS. QUESTION HOLLY. MM-HMM . THE, I I THOUGHT DON'T WE REVIEW THAT LIKE EACH YEAR THOUGH, YOU KNOW, SO THAT, WHY WOULD THAT BE ON THIS LIST ONGOING? BECAUSE DON'T, EVERY YEAR WHEN WE'RE GETTING READY TO GO TO LEAGUE CITIES AND TOWNS PRIOR TO THAT, THERE'S THESE COMMITTEES AGAIN AND WHO WANTS TO TAKE LEADS AND WHATEVER. AND AT THAT TIME, DON'T WE TALK ABOUT WHO THE PERSON IS ON THAT COMMITTEE? NO, NO. IT HAS BEEN AGENDIZED IN THE PAST. KAREN, UH, WOULD SEND AN EMAIL OUT FOR INTEREST AND THEN SHE WOULD, UM, GET FEEDBACK FROM COUNSELORS AND THEN IT WOULD BE AGENDIZED FOR DISCUSSION AT A MEETING. BUT THAT DIDN'T AFFECT DELAY THE QUOTE LIAISON. CORRECT. THAT WAS ONLY AFFECTED THE TOPIC AND WHETHER COUNCIL WAS GONNA SUPPORT OR OPPOSE A, A DIFFERENT IDEA. THE LIAISONS WERE ALREADY CHOSEN, BUT YOU COULD BE A LIAISON. I MEAN, THERE'S OPENINGS, THERE'S, I DON'T KNOW WHAT B-F-E-E-D IS. WE'LL HAVE TO FIND THAT OUT. FLEXIBILITY AND ECONOMIC DEVELOPMENT. OH, THANK [06:10:01] YOU. I DON'T KNOW WHY MY NAME IS THERE. MAYBE THAT'S BECAUSE SCOTT WAS ON IT. IT'S FINANCE, BUDGET FINANCE. BUT YEAH, THAT'S WHY HOLLY, WELL, THEY, THEY TALK, THEY SPEAK TO IT AS FLEXIBILITY, BUDGET FLEXIBILITY AND THE G-A-H-R-E, I'M NOT SURE WHAT THAT IS. GOVERNMENT AFFAIRS HOUSING. SO ANYWAY, IF, IF ANY MEMBER OF COUNCIL IS INTERESTED IN ANY OF THESE COMMITTEES, MA MAKE YOUR INTEREST KNOWN. AND DON'T BE AFRAID. YOU MIGHT NOT EVER MEET . RIGHT. IT'S NOT A LOT OF WORK. OKAY. BUT THEY ARE OFFICIAL. THEY ARE OFFICIAL. AND THEY DO TAKE VOTES. THEY'RE VIRTUAL. AND THEY'RE VIRTUAL. YEAH. YEAH. AND THEY ARE VIRTUAL. OKAY. NOW THE RESOLUTIONS COMMITTEE THAT IS REALLY OFFICIAL AND THAT IS THE MAYOR. UH, I DON'T KNOW ANY, ANY OF THE POLICY ISSUES THAT MAKE IT OUT OF THOSE COMMITTEES. GO TO THAT ONE. CORRECT. AND THEY DO VOTE AT THE ANNUAL MEETING, AND I'VE ATTENDED THOSE, BUT I'VE SAT IN THE BACK OF THE ROOM 'CAUSE ONLY THE MAYOR GETS TO SIT AT THE TABLE AND ONLY THE MAYOR GETS TO VOTE. VOTE. MM-HMM . NACOG. BRIAN, YOU WANNA TALK TO THAT? THAT IS SHARED GOVERNANCE. RIGHT. REALLY SHARED GOVERNANCE. ABSOLUTELY. THAT, THAT'S AS REAL AS, AS ANY OF THESE GET PROBABLY IN THAT REGARD. SO, UM, AND I CERTAINLY WOULD LIKE TO CONTINUE ON IN THAT ROLE. I MEAN, IT TAKES A COUPLE YEARS TO EVEN FIGURE OUT WHAT ALL THEY HAVE GOING ON. OKAY. PETE AMWELL, I WAS TRYING TO FIGURE OUT HOW TO PRONOUNCE IT. . AND, AND THE NOTE IN THE, IN THE CHART HERE SAYS THAT IT MAKES SENSE FOR THIS PERSON TO BE LAY AS IN THE P PS MAC. I THINK THEY MEANT CP W THE COCONINO PLATEAU, THE OTHER. SO THAT I THINK SHOULD BE CORRECTED IN THIS CHART. . JOE, DID YOU GET THAT? THAT THAT'S A TRUE SHARED GOVERNANCE MODEL. YEP. WHAT ARE YOU, WHAT IS THE ACRONYM? THE, UH, IT'S THE COCONINO PLATEAU WATER USERS GROUP. THAT'S AT THE TOP OF THE CHART THERE. WATER ADVISORY. YEP. CPW. YEP. I DON'T. OKAY. THE NEXT IS THE PUBLIC SAFETY PERSONNEL RETIREMENT. PETE, THAT'S YOUR ASSIGNMENT. AND YOU'RE THE CHAIR, RIGHT? THAT'S, THAT'S CORRECT. YEAH. THAT'S, UH, BY DE BY STATE LAW DESIGNATION. THE MAYOR, UH, DESIGNATES IS IS THE CHAIR OR THE MAYOR'S DESIGNEE. OKAY. AND IS THERE AN HR SPECIALIST THAT SUPPORTS IT? YES. YEAH. BRENDA IS THE SECRETARY OF THE BOARD AND RUNS THE SHOW. THANK YOU. BRENDA . OKAY. UH, CHAMBER OF COMMERCE. WE TALKED ABOUT THAT BEFORE. IT PROBABLY SHOULD COME OFF THIS LIST. AND, AND ACTUALLY ANNETTE IS THE, IS ON THEIR, IS LIAISE ONTO THEIR BOARD. SO THE THANK YOU MAYOR. UM, THE CHAMBER BOARD SENT ME AN INVITATION THAT I REVIEWED WITH HOLLY, UM, TO BE THE CITY, UH, NON-VOTING LIAISON TO COME TO THEIR MONTHLY MEETINGS AND, UM, START BUILDING THAT COLLABORATIVE RELATIONSHIP BETWEEN OUR STAFF AND THEIR STAFF. SO I WENT TO MY FIRST MEETING, UM, AT THE BEGINNING OF DECEMBER, UM, TO SHARE INFORMATION AND HEAR FROM THEM. OKAY. THEN THE SEDONA CHAMBER OF COMMERCE, STURT, THEY HAVEN'T HAD THAT IN YEARS. DOESN'T EXIST ANYMORE, SO IT SHOULD DEFINITELY COME OFF THE LIST. UH, HISTORICAL SOCIETY. I'M THE LIAISON. THEY'RE A SERVICE CONTRACT COMMUNITY CENTER. KATHY'S LIAISON. AND THEY ARE SERVICE CONTRACT. SEDONA LODGING COUNSEL. THAT SHOULD COME OFF THE LIST. SEDONA PUBLIC LIBRARY. MELISSA IS THE LIAISON. AND THAT'S A SERVICE CONTRACT. SEDONA WASTEWATER MUNICIPAL PROPERTY CORPORATION. WHAT ABOUT RECYCLES? OH, SORRY. SEDONA RECYCLES. DEREK, YOU'RE THE LIAISON. AND THAT IS ALSO A SERVICE CONTRACT. SEDONA WASTEWATER MUNICIPAL PROPERTY CORPORATION. WE TALKED ABOUT THAT A MINUTE AGO. UH, I DON'T KNOW WHY YOU AND I ARE ON THIS LIST, BRIAN, BE BECAUSE THE, THE ARTICLES OF CORPORATE CORPORATIONS SAY THAT THE MAYOR AND VICE MAYOR ARE THE TWO, BUT WE CAN JUST PUT [06:15:01] IT AS THE WHOLE COUNCIL AND IT CAN JUST BE ME, UH, WHEN NEEDED. UH, WHICH MIGHT NOT EVER COME UP OR NOT COME UP AGAIN FOR A WHILE AFTER WE HAVE A MEETING TO CHANGE. YEAH. CHANGE THE BYLAWS. EXACTLY. SO ONCE THOSE ARE, ONCE THAT'S DONE. SO WE'LL, WE'RE PLANNING TO DO THAT WHEN THE ANNUAL MEETING COMES UP. THIS MAY. UH, YEAH. AND IT'S ACTUALLY GONNA BE IN APRIL OR APRIL. OKAY. YEP. AND WHO'S ON WHO'S SERVES ON THIS CORPORATION? UH, IT'S TECHNICALLY THE, THE, YEAH. MAYOR, WHO ELSE IS ON THE BOARD? YEAH, I THINK IT'S THE WHOLE COUNCIL, BUT JUST THE TWO ARE THE ONES THAT GENERALLY MEETING MEETINGS. AND SO IT'S LIKE, LIKE THE, UH, IT, YES, BUT WE, I DON'T REMEMBER EVER HAVING A MEETING. WE'LL TALK ABOUT IT. THAT KIND MEETING. OKAY. YEAH. , YOU'RE RIGHT. AND WE DON'T, OTHER THAN THE BYLAWS SAY WE SHOULD HAVE AN ANNUAL MEETING, THERE'S NO REASON TO HAVE ONE CURRENTLY. AND SO WE'LL JUST CORRECT THAT. ALL RIGHT. MEANING TO TALK ABOUT NOT HAVING , UNFORTUNATELY, SUSTAINING FLOWS. COUNSEL, ANYBODY KNOW WHAT THAT IS? I THINK IT'S AN OFFSHOOT OF VERDE FRONT, ISN'T IT? OR THERE'S A SEPARATE ONE ON VERDE FRONT. YEAH. I THINK THIS CAME THAT IT HAS TO DO WITH THE VERDE RIVER AND THE WATER. IT'S INTERESTING. I'D NEVER REALLY SEEN THAT ON THERE. I KNOW THAT THAT STILL IS AN ACTIVE GROUP AND THEY, THEY'RE DOING THINGS. WE TALK ABOUT THEM IN THE WATER BOARDS THAT I'M ON OFTEN. IT DOESN'T SOUND THERE'S NO COUNSELOR ASSIGNED TO IT. I DON'T, DOES DO WE NEED TO HAVE A COUNSELOR ASSIGNED TO IT? IT'S, IT SEEMS FROM THEIR WEBSITE THAT THEY'RE REDUNDANT TO FRIENDS OF THE VERDE RIVER. YEAH. THE VERDE SUSTAINA SUSTAINING FLOWS COUNCIL FOCUSES ON STREAM ADJUDICATION. UM, I SAY IT'S A STAFF FUNCTION, BUT CON CONSERVING THE VERDE RIVER FLOWS AND I SUSTAINABLE WATER IN THE REGION, I BELIEVE ROXANNE PARTICIPATES. UM, AND IN TERMS OF THE VERDE FRONT, THEY DID REACH OUT TO ME EARLIER THIS YEAR TO ASK IF THERE WOULD BE A COUNSELOR OR THE MAYOR WOULD BE INTERESTED IN PARTICIPATING IN THAT BOARD. I SENT YOU SOME INFORMATION ABOUT IT. UM, AND MY UNDERSTANDING IS IT ORIGINATED AS THE PUBLIC ENGAGEMENT, UM, VEHICLE FOR THE FOREST SERVICE WHEN THEY WERE UPDATING THE RECREATION MANAGEMENT PLAN. AND THEN AFTER THAT PLAN WAS APPROVED AT THE FEDERAL LEVEL, THIS WORK GROUP, WHICH REPRESENTED PEOPLE FROM ALL THE CITIES IN THE VERDE VALLEY AND A LOT OF DIFFERENT VOLUNTEER ORGANIZATIONS THAT WORKED ON ALL KINDS OF OUTDOOR RECREATION STUFF. AND THE VERDE RIVER WANTED TO KEEP MEETING BECAUSE THEY FOUND THAT, UM, CONVENING OF ALL THOSE PEOPLE TOGETHER TO TALK ABOUT THOSE ISSUES WAS HELPFUL TO THEM. AND SO IT'S CONTINUED ON. UM, AND MAYOR JALO DID PREVIOUSLY ATTEND OCCASIONALLY. I'VE GONE TO A COUPLE. UM, SO IT IS STILL A ACTIVE GROUP. UM, AND WE GIVE THEM MONEY, RIGHT? WE DO, I THINK ABOUT $5,000 A YEAR. UM, SO YES. SO IF THERE WAS INTEREST BY A COUNSELOR TO PARTICIPATE ON THAT BIG, UM, VERDE VALLEY SORT OF REGIONAL ACTIVITY AROUND OUTDOOR RECREATION AND, UM, RIVER QUALITY, THEY WOULD BE MORE THAN HAPPY TO TO HAVE YOU JOIN THEM. AND THEN IT LOOKS LIKE I NEED TO UPDATE THE, FROM, UH, INVOLUNTARY TO THE INVOLUNTARY, UH, FINANCIAL RELATIONSHIP THEN. WELL, NO, IT'S A MEMBERSHIP. I, I WOULDN'T SAY IT'S A FINANCIAL, BUT WE'RE, WE'RE GIVING THEM MONEY FOR MEMBERSHIP. RIGHT. AS A MEMBER. OH, FOR, FOR MEMBERSHIP. GOTCHA. THANKS. I KNOW MAYOR JALO WENT, HE TOLD ME THAT IT REALLY, AND PETE, YOU MIGHT HAVE A DIFFERENT POINT OF VIEW, BUT HE SAID THAT REALLY DOESN'T IMPACT SEDONA. IT'S MUCH MORE ABOUT THE OTHER COMMUNITIES. DO YOU AGREE WITH THAT? WELL, A LOT OF THE TOPICS ARE RELATED TO THE, UM, COMMUNITIES THAT ARE GEOGRAPHICALLY LOCATED NEXT TO, OR, UM, VERY NEAR TO THE VERDE RIVER. SO THE PRESERVATION OF THE VERDE RIVER, I THINK IS THE PRIMARY, UM, MISSION OF THE GROUP. SO, UM, BUT THEY HAVE OFFSHOOT SUBCOMMITTEES THAT TALK ABOUT, YOU KNOW, RECREATION ECONOMY ACTIVITIES. AND WE DO HAVE SOME STAFF THAT GO TO SOME OF THEIR SUBCOMMITTEES THAT LIKE STAFF LEVEL WORK GROUPS, BUT THE ACTUAL GOVERNING BODY THAT OVERSEES ALL OF THAT, UM, WE DON'T HAVE A STAFF PERSON THAT GOES THROUGH THAT. DO YOU EVALUATE REGULARLY? [06:20:01] DO YOU EVEN KNOW IN A, IN A, A LIST OF ALL THE GROUPS WE'RE MEMBERS OF , WHAT WE GIVE THEM EVERY YEAR, AND WHETHER WE SHOULD CONTINUE DOING IT? YEAH. YEAH. WE, WE DO THAT IN THE BUDGET, SO MM-HMM . COULD YOU MAKE SURE WE SEE THAT? I SURE DON'T REMEMBER EVER SEEING IT. YEAH, ABSOLUTELY. EACH DEPARTMENT WOULD HAVE IT UNDER LIKE MEMBERSHIPS, WHICH WOULD BE WHY YOU WOULDN'T SEE LIKE A FULL LIST. BUT WE CAN ABSOLUTELY CREATE ONE. MM-HMM . I MEAN, IF THE DEPARTMENT THINKS IT'S WORTHWHILE, THEY HAVE THE BUDGET AND THEY ATTEND, IT'S ONE THING. BUT IF WE'RE JUST PAYING, NOBODY PARTICIPATES SOMETHING ELSE. MM-HMM . MM-HMM . THIS IS ONE OF THOSE THINGS THAT IF COUNCIL REALLY WANTS TO ENGAGE MORE REGIONALLY AND BUILD RELATIONSHIPS REGIONALLY, THIS IS AN ORGANIZATION TO EVALUATE AGAIN. MM-HMM . DECIDE WHETHER THAT AND SUSTAINING FLOWS. I, I KNOW THAT THEY'VE DONE SOME GOOD WORK, BUT I REALLY DON'T KNOW THAT WE EVEN POTENTIALLY HAD A ROLE FOR IT. . OKAY. ALL RIGHT. NEXT IS VERDE VALLEY CAREGIVERS. MELISSA'S THE LIAISON AND THEY ARE A SERVICE CONTRACT. AND THEN THE LAST TWO VERDE VALLEY MAYOR MANAGER GROUP, I DON'T THINK THAT'S SHARED GOVERNANCE. THEY DON'T MAKE ANY DECISIONS WHERE WE'RE GOVERNING ANYTHING. SO I WOULD CHANGE THAT INFORMATION. YES. IT'S INFORMATION SHARING AS SAME WITH YAVAPAI COUNTY MAYOR MANAGER GROUP. AND, UH, AND I GO, AND THAT GOES MM-HMM . IT'S, IT'S ALSO VIRTUAL, EXCEPT I GUESS THE INFORMATION SHARING, THE, THE, IT'S ONCE A QUARTER THAT THE, THE SEMI-ANNUAL ONE IS A BREAKFAST. RIGHT. UM, IN PERSON, BUT THE REST ARE, IN FACT IT'S HAPPENING TOMORROW. TOMORROW. YEAH. WE'RE NOT GOING, WE'RE NOT GOING. RIGHT. , I LET THEM KNOW. UM, AND MAYOR, IF YOU DON'T MIND, I COULD, UM, GIVE A LITTLE DESCRIPTION OF THE REQUEST THAT YOU RECEIVE FROM YAVAPI COUNTY FOR THIS ADDITIONAL LIAISON REQUEST. EXCUSE ME. BEFORE YOU DO THAT. YES. CAN WE JUST ADD ONE TO THIS LIST? GSRC. SO THE GSRC ORIGINATED BY KAREN ASKING ME TO REPRESENT THE CITY. MM-HMM . UM, I DO STILL SIT ON THEIR CO-CONVENERS BOARD. UM, I UPDATE THEM ON ANYTHING THAT'S HAPPENING WITHIN THE CITY THAT MAY IMPACT. UM, AND I TRY TO BRING BACK THINGS THAT MAY IMPACT US FROM WHAT THEY'RE DOING. WE PARTICIPATE NOW AS A GRANT MANAGER FOR THE BROKEN ARROW GRANT THAT THEY RECEIVED FROM STATE PARKS. SO I DON'T KNOW HOW YOU WOULD CLASSIFY THIS. UM, WE USED TO PAY IN TO HELP, UH, PAY FOR FACILITATORS. WE HAVE NOT MADE A PAYMENT, UH, TO GSRC. I THINK AS LONG AS YOU'VE BEEN HERE, WE'VE NOT MADE ANY PAYMENT THAT G-E-S-R-C, UM, THERE ARE OTHER GROUPS WITHIN THERE IN THE FOREST SERVICE THAT HAVE BEEN COMING UP. AND, UM, THE GRANTS CAN'T SUPPORT, UM, ANYTHING OTHER THAN THINGS BEING BUILT. SO, UH, ANYTHING LIKE, UM, THE SOUTHWESTERN DECISION, WHATEVER THEY ARE, UM, HAS TO COME FROM, FROM MEMBERS. AND SO, UH, I JUST WANTED TO POINT OUT, WE ACTUALLY ARE NOT PARTICIPATING AS MEMBERS. THERE AREN'T ANY MEMBERS OR MEMBERSHIP OFFICIALLY. UM, AND SO IT'S JUST GROUPS COMING TOGETHER TO RAISE THE FUNDS TO DO THAT. UM, SO THAT WE HAVE NO FINANCIAL REQUIREMENTS HERE, BUT WE'VE, WE HAVE COMMITTED TO DO, UM, A REALLY HUGE PIECE HERE ON THE BROKEN ARROW. OKAY. FORMALLY ADD THAT TOMORROW, RIGHT? I THINK SO, YEP. OKAY. UM, DID YOU HAVE SOMETHING YOU NEEDED TO ADD IN LIST SO WE CAN, AND I'M MAKING SOME NOTES TOO, SO, SO WE'LL HAVE A NEW VERSION TO PUT UP TOMORROW. YEAH. OKAY. GREAT. UM, SO MAYOR COUNCIL, YOU RECEIVED AN INVITATION, UM, IN NOVEMBER FROM YAVAPI COUNTY. UH, THEY RECEIVED A GRANT FROM THE SONORAN INSTITUTE TO FACILITATE DISCUSSIONS REGARDING WATER RESOURCES AND OPEN SPACE. UM, AND THEY'RE ASKING THAT YOU DESIGNATE ONE REPRESENTATIVE FROM THE CITY AND ONE ALTERNATIVE ALTERNATE FROM THE CITY TO SERVE ON THE, UM, STEERING COMMITTEE OVERSEEING THIS GRANT. UM, AND IT SAYS ONCE THE PROCESS BEGINS, THEY WILL BE SOLICITING INPUT FROM ALL STAKEHOLDERS TO DEFINE WHAT SUCCESS FOR THE COMMITTEE WILL BE. AND THOSE DISCUSSIONS COULD INCLUDE, UM, IDENTIFYING AREAS OF AGREEMENT AND COLLABORATION TO STRENGTHEN THE [06:25:01] VOICE ON REGIONAL WATER ISSUES IN OPEN SPACE, DISCUSSING HOW TO BETTER UTILIZE THE TOOLS IN OUR TOOLBOX TO POSITIVELY IMPACT REGIONAL WATER SUPPLY. IDENTIFYING OPPORTUNITIES TO INTEGRATE THIS COMMITTEE WITH OTHER EXISTING REGIONAL EFFORTS, UNDERSTANDING RELEVANT ISSUES, GOALS AND ALIGNMENT AMONG THESE MUNICIPALITIES, UNINCORPORATED COMMUNITIES AND STAKEHOLDERS IN YAVAPAI COUNTY, CREATING FOUNDATIONAL DOCUMENTS FOR THE COMMITTEE AND DEFINING OPPORTUNITIES FOR SHORT TERM SUCCESSES AND LONGER TERM OBJECTIVES WITH THE PROCESS FOR ADDRESSING THEM. THEY'RE GOING TO START THE COMMITTEE MEETINGS IN JANUARY AND THEY ASK THAT WE PLEASE SUBMIT TO THEM BY DECEMBER 19TH, UM, WHO OUR DESIGNATED REPRESENTATIVE AND ALTERNATIVE ALTERNATE IS FOR SEDONA. UM, SO THAT WAS, UH, SENT TO YOU ALL LAST MONTH. DUNNO IF ANYBODY HAD A CHANCE TO LOOK DEEPLY INTO THAT. BUT BASICALLY, UM, RECEIVED A GRANT TO EVALUATE WATER RESOURCES AND OPEN SPACE IN YAVAPAI COUNTY AND WOULD LIKE OUR PARTICIPATION IN THAT. SO, YOU KNOW, PETE EXPRESSED AN INTEREST IN BEING OUR LIAISON, AND KATHY EXPRESSED AN INTEREST IN BEING OUR ALTERNATE. SO TO, IF ANYBODY ELSE IS INTERESTED, MAKE YOUR INTEREST KNOWN , AND IF NOT, WE, WE'LL APPOINT THEM TOMORROW. WHAT DO WE, YOU AND I HAVE JUST BEEN ELECTED GEEKS. LET'S SEE, WE'LL CALL THIS THE YC ROCK SURE. WATER RESOURCE, OPEN SPACE ROCK. AND JOANNE, I KNOW YOU'RE KEEPING NOTES ON THIS. I, I FELL TOMM BELSHE HAS LEFT THE LEAGUE. IT WAS THE FOUNDATIONAL DOCUMENTS PART. GO BACK TO THE LEAGUE. HE'S, HE'S NO LONGER THE EXECUTIVE DIRECTOR. NICK PONDER IS THE EXECUTIVE DIRECTOR, SOME KIND OF ACRONYM FOR THAT. . SO I GUESS WHERE YOU SEE TOM BELSHE, YOU COULD PUT NICK PONDER THE NAME. MM-HMM . . OKAY. SO YOU CAN VOTE ON THAT TOMORROW AND THEN I CAN LET, UH, THE COUNTY KNOW. AND I THINK THAT'S ALL I HAVE ON THE LIST. UM, OTHER THINGS WILL BE FOR TOMORROW, UNLESS YOU HAVE ADDITIONAL OR SOMETHING THAT WE, THAT YOU WANT TO REVISIT. OKAY. SO LET'S, LET'S REVIEW WHAT TOMORROW WE HAVEN'T HAD A DISCUSSION ON NUMBER ONE, CORRECT. TODAY. THAT WILL COME AS PART OF THE WRAP UP FOR THE LEADERSHIP TEAM REPORT BACK ON THE CORE PRIORITIES WE'LL GET IN THE MORNING. OKAY. NUMBER TWO, WE'LL HAVEN'T HAD A DISCUSSION. WE'LL DISCUSS TOMORROW. NUMBER THREE, WE'VE HAD A DISCUSSION, BUT YOU'RE, BUT HOPE HOUSE IS COMING TOMORROW TO ANSWER QUESTIONS. YEAH. HOPE HOUSE IS GOING TO COME TOMORROW. IS THAT ANY QUESTIONS? SAME WITH SIF, RIGHT? THEY WANTED TO, THAT'S THE SAME AS SIF. WANTED TO BE HERE TOMORROW TO ANSWER ANY QUESTIONS YOU MIGHT HAVE. I THINK YOU SAID THEY WERE PLANNING TO BE HERE TOMORROW TOO, IS THAT RIGHT? UH, OKAY. OH, WELL, I, I DON'T KNOW FOR SURE. THEY HAVEN'T TOLD ME, BUT I THOUGHT YOU HAD MENTIONED THAT, UM, SOMEBODY SAID THAT THEY WERE, HAD YOU MADE A PUBLIC ANNOUNCEMENT THAT HE PLAYED? OH, NO, BUT HE TOLD ME HE'S COMING. OKAY. THAT'S WHAT I WAS, THAT WAS WHAT I WAS CLARIFYING THAT OH, NO, NO, HE'S DEFINITELY COMING, BUT OKAY. I'M, I'M THINKING ABOUT THE HOPE HOUSE. ARE WE, ARE WE READY TO ASK THEM QUESTIONS? WE, I MEAN, WE HAVE A LOT OF WORK TO DO BEFORE WE GET TO THAT POINT, DON'T WE? WELL, WELL, THEY WOULD NEED TO GO THROUGH THE SAME PROCESS. ALL THE OTHER ONES ARE GOING THROUGH WITH FINANCE, BUT WE HAVEN'T. EVEN IF YOU DECIDE THAT YOU WANT TO EXTEND THAT INVITATION TO THEM. YES. YES. SO WHAT MY UNDERSTANDING IS, WE WOULD, AT THIS POINT, WE'RE AGREEING TO LET THEM GO THROUGH THE PROCESS. THEY'LL GO THROUGH THE PROCESS WITH BARBARA AND THEN WE'LL SEE IT AS PART OF THE DECISION PACKET AND DECIDE WHETHER OR NOT WE WANT TO GO AHEAD AND THEN FUND THEM FOR WHATEVER THAT FUNDING REQUEST IS. JUST LIKE WE DO ALL OF OUR OTHER, UM, MAIN SERVICE CONTRACTORS AM UH, THAT'S WHAT I UNDERSTOOD. I'M, I'M LOOKING AT ANNETTE, I WAS GONNA SEE WHAT I WROTE DOWN JUST A SECOND. DID WE GET THAT FAR? I DON'T THINK WE REALLY GOT THAT FAR. I THINK WE TALKED ABOUT THAT AS A SCENARIO, BUT I WROTE DOWN, UH, YOU KNOW, THAT YOU GUYS WOULD DECIDE TOMORROW TO LOOK AT FUNDING THEM THROUGH THE DECISION PACKAGE PROCESS. WELL, ACTUALLY THAT'S FAIR BECAUSE WE DIDN'T, WE CAN'T VOTE ON WHETHER OR NOT HOPE HOUSE WAS THERE. HOPE HOUSE WILL BE HERE AS PART OF OUR PROCESS OF MAKING THE DECISION ON WHETHER TO VOTE. YEAH. BUT TO ANSWER ANY [06:30:01] QUESTIONS THERE, I DON'T KNOW THAT WE HAVE ANY QUESTIONS FOR THEM TO ANSWER UNTIL THEY'RE AN ACTUAL APPLICANT. RIGHT. I DON'T KNOW WHAT THEY, THEY'RE WELCOME TO COME, BUT WELL, YOU, YOU MIGHT WANNA KNOW FOR SURE, LIKE WHAT ARE THE THINGS THAT THEY ACTUALLY DO BEFORE YOU EVEN WANNA CONSIDER WHETHER OR NOT YOU WANT TO SEE THEM. I, I DON'T KNOW. I'M NOT GONNA TELL THEM NOT TO COME. NO, THEY CAN SIT IN THE AUDIENCE. WELCOME. BUT IT'S NOT A PRESENTATION OPPORTUNITY, RIGHT? NO, NO, THEY'RE NOT PRESENTING. THEY WERE HERE IN CASE THEY WOULD, THEY SAID THEY WOULD SIT IN THE AUDIENCE IN CASE THERE WERE ANY QUESTIONS THEY COULD ANSWER AS PART OF THE DISCUSSION. OKAY. UH, JUST SET AN EXPECTATION WITH THEM THAT WE'RE AT THE VERY EARLY STAGES OF INVESTIGATING THIS. SURE. DID YOU WANT ME TO SUMMARIZE ALL OF THESE OR DO THAT TOMORROW JUST TO REFRESH BEFORE YOU YEAH, YOU DON'T TAKE YOUR FINAL DECISION. OKAY. BUT, SO WE DIDN'T, SO WE DISCUSSED FOUR, WE DISCUSSED FIVE. WE DIDN'T REALLY DISCUSS. SIX IS, WELL BECAUSE SIX YOU MENTIONED WAS ALREADY CAPTURED IN THE . RIGHT? SO WHO, WHO PUT THAT ITEM ON THE LIST? UH, CHARLOTTE. OH, CHARLOTTE. OKAY. SHE DID 6, 7, 8. SO I HAVE SOME FOLLOW UP TO DO WITH RIGHT TODAY. UM, SO TOMORROW MY NOTES ARE, UM, LEADERSHIP TEAM REPORT BACK ON CORE PRIORITIES, THE LEGISLATIVE PRIORITIES PRESENTATION BY KATHY, YOUR, UM, DISCUSSION AROUND COUNCIL CHAMPION, UH, DECISIONS ON, UH, ALL THE ITEMS YOU JUST TALKED ABOUT, TOURISM ADVISORY, BOARD APPOINTMENT, AND THEN, UH, A REVISED COUNCIL LIAISON. IF I COULD, UH, ARE WE GONNA TAKE UP KATHY'S QUESTION ABOUT THE LIAISON ROLES AND SORT OF GUIDELINES AND WHO GETS TO GET ONE AND WHAT WOULD BE THE PROCESS? I MEAN, CAN ANY NONPROFIT IN TOWN ASK TO HAVE A COUNCIL LIAISON AND OR WHATEVER? I DON'T, YOU KNOW, JUST, I THINK THAT NEEDS TO BE TAKEN UP, BUT WHETHER WE DO IT TOMORROW OR NOT, YEAH. I SAY WE TALK ABOUT IZING. YEAH. FUTURE DISCUSSION. BE A FUTURE COUNCIL AGENDA ITEM FOR A COUNCIL MEMBER THAT WANTS TO PUT ON . BUT WE DO, WE DO WANNA FINALIZE COUNCIL COMPENSATION IF WE'RE GOING TO APPOINT A WORK GROUP AND CITIZEN WORKERS. YEAH. AND UH, AND THAT'S IT. OKAY. BRIAN, SO ANNETTE IS THE LEADERSHIP TEAM THAT'S OVER IN THE VAULTY WORKING ON WHAT HAS NOW BECOME PRIORITY THREE OF ECONOMY. IS THAT ALSO GONNA BE INCLUDED FOR TOMORROW? MM-HMM . GREAT. THANK YOU AND ANNETTE. AND BASED ON EVERYTHING THAT WE HAVE TO DO TOMORROW AND THE WAY DISCUSSIONS HAVE GONE. DO YOU THINK WE'RE STILL ON TRACK TIMING WISE TOMORROW? I THINK THE, YOU DID THE BULK OF THE DISCUSSION ON ALL OF THESE COUNSEL ITEMS. SO I, IF WE RESTRAIN OURSELVES FROM REPEATING OURSELVES RIGHT? RIGHT. IF WE RESTRAIN OURSELVES FROM REPEATING OURSELVES. , WOULD YOU REPEAT THAT? WHAT, YEAH, IF WE RIGHT. . SO YOU THINK WE'RE DONE TODAY? YEAH. ANYBODY HAVE ANYTHING ELSE THEY WANNA SAY? [5. ADJOURNMENT] AND WE'RE RECESS TILL TOMORROW MORNING AT EIGHT O'CLOCK. THANK YOU EVERYBODY. * 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.